Performance.

In fiscal 2015/2016, Wincor Nixdorf AG's profit for the period after non-recurring items (income of €4 million) and transaction expenses relating to the business combination with Diebold Inc. (expenses of €54 million) rose by €94 million to €102 million (2014/2015: €8 million). However, it should be noted that the figure for the previous fiscal year contained expenses totaling €80 million for the restructuring program launched in 2014/2015.

Reconciliation of Result from Business Operations (EBITDA).

€ million

 

 

2015/2016

2014/2015

*

Before transaction expenses of €54 million in the current fiscal year relating to the business combination with Diebold Inc.

Profit for the period

102

8

+

Income taxes

37

7

+

Financial result (finance cost - finance income)

5

7

+

Transaction expenses relating to business combination with Diebold Inc.

54

0

EBITA after expenses from non-recurring items*

198

22

+

Depreciation/amortization and write-down of industrial rights, licenses, and property, plant, and equipment

56

52

+

Write-down of reworkable service parts

6

2

EBITDA after expenses from non-recurring items*

260

76

The Group's net sales totaled €2,579 million in the period under review, up 6% on the prior-year figure (2014/2015: €2,427 million). While revenue from sales in the Banking segment fell by 2% to €1,543 million (2014/2015: €1,582 million), net sales in the Retail segment rose by 23% to €1,036 million (2014/2015: €845 million). Expressed in local currencies, net sales were up by a notional 9% in the period under review.

Operating profit (EBITA) was influenced by non-recurring items in fiscal 2015/2016. These non-recurring items included two components:

1) Expenses from the Delta restructuring program launched in the second half of fiscal 2014/2015. These items consisted primarily of staff costs as well as consulting fees.

2) Other one-time effects from the Delta program relating to M&A activities, which are recognized as other operating income and had a positive impact on operating profit (EBITA).

The prior-year figures have been presented on a comparable basis by accounting for expenses incurred as a result of the Delta restructuring program in fiscal 2014/2015. Beyond this, there were no further non-recurring items in 2014/2015.

The gross margin on net sales, after non-recurring expenses, was €615 million (2014/2015: €434 million); expenses attributable to one-off items amounted to €14 million. In fiscal 2015/2016, the gross margin on net sales before non-recurring expenses improved by 4.3 percentage points year on year to 24.4% (2014/2015: 20.1%).

Research and development costs, which contained no significant expenses from non-recurring items in the fiscal year under review, amounted to €94 million (2014/2015: €90 million), an increase of €4 million, or 4%, on the previous year. The R&D ratio stood at 3.6% (2014/2015: 3.7%). Research and development costs before non-recurring expenses rose by 9%, or €8 million, to €94 million (2014/2015: €86 million). The R&D ratio stood at 3.6% (2014/2015: 3.5%).

After expenses from non-recurring items, the Group's selling, general, and administration expenses (including other operating income as well as the result from investments accounted for by applying the equity method) came to €323 million; this included income of €18 million from non-recurring items. The total figure for selling, general, and administration expenses before non-recurring items stood at €341 million (2014/2015: €301 million), an increase of €40 million or 13%. As a percentage of total net sales, the selling, general, and administration expense ratio before non-recurring items stood at 13.2% (2014/2015: 12.4%).

In fiscal 2015/2016, operating profit (EBITA) totaled €144 million (2014/2015: €22 million), including transaction expenses of €54 million attributable to the business combination with Diebold Inc. Accordingly, excluding these transaction expenses, operating profit (EBITA) after income from non-recurring items related to the Delta restructuring program amounted to €198 million (2014/2015: €22 million). This includes income of €4 million from non-recurring items. Therefore, EBITA before income from non-recurring items and transaction costs amounted to €194 million (2014/2015: €102 million); the EBITA margin before income from non-recurring items increased by 3.3 percentage points to 7.5% (2014/2015: 4.2%).

Reconciliation EBITA 2015/2016*.

 

 

€ million

 

before one-time effects

one-time effects

after one-time effects

*

Before transaction expenses of €54 million in the current fiscal year relating to the business combination with Diebold Inc.

Net sales

2,579

 

2,579

Cost of sales

–1,950

–14

–1,964

Gross profit on sales

629

–14

615

Research and development costs

–94

0

–94

Selling, general, and administration expenses

–341

18

–323

EBITA*

194

4

198

Including income from non-recurring items, EBITDA rose to €260 million (2014/2015: €76 million). This represents an increase of €184 million or 242%.

At -€5 million, the Group's financial result improved slightly in the period under review (2014/2015: -€7 million).

Earnings before taxes ended the fiscal year €124 million higher at €139 million (2014/2015: €15 million). The Group's effective tax rate was 27% (2014/2015: 48%).