General Information.

Wincor Nixdorf Group (in the following “Wincor Nixdorf” or the “Group”) is one of the world’s leading providers of IT solutions to banks and retailers. The extensive portfolio is aimed at optimizing business processes within bank branches and retail outlets. This is essentially about reducing complexity and cost, and improving service to the end customer.

The Banking segment’s proposition includes hardware, software, IT services, and consulting services. ATMs, cash recycling systems, automated teller safes and transaction terminals are key elements of the hardware portfolio. Besides software for the operating systems banks may benefit from software by means of which they are able to manage processes throughout all distribution channels.

Through the Retail segment, Wincor Nixdorf also provides hardware, software, IT services, and consulting services. Key elements are programmable ePOS systems or self-checkout systems and relate to the checkout area. The software portfolio allows the entire control of all processes and systems within the branch.

For both retail banks and retailers our IT services ensure the maximum availability of installed IT systems. Moreover, for both segments Professional Services offer software adaptation and integration to the IT environment of our customers. For reporting purposes, these services are allocated to either one of the segments Retail or Banking.

Wincor Nixdorf is represented in over 130 countries around the world and has its own subsidiary companies in 41 of these. Major business geographies are Germany and Europe. The Group’s main production facility is located in Germany. Research and development within the Group is conducted predominantly in Germany, Austria, Poland, Singapore, and Czechia.

The parent company of the Group is Wincor Nixdorf Aktiengesellschaft (in the following “Wincor Nixdorf AG”) located on Heinz-Nixdorf-Ring 1, 33106 Paderborn, Germany. The Company is registered at the local court office in Paderborn, Germany. The stock of Wincor Nixdorf AG is listed on the Frankfurt Stock Exchange in the Prime Standard segment and is part of the SDAX. The Group’s fiscal year commences on October 1 and ends on September 30 of the subsequent calendar year.

The functional and reporting currency of Wincor Nixdorf AG is the euro (€). The Group financial statements are set up in euro since this is the currency in which the majority of the Group’s transactions are carried out. Reported figures are shown in thousands of euro (€k) unless stated otherwise.

Several Group balance sheet and Group income statement items have been combined in order to improve clarity. These items are stated and explained separately in the Notes to the Group financial statements. The Group income statement is structured using the cost of sales method.

On November 23, 2016, the Board of Directors of Wincor Nixdorf AG authorized the Group financial statements for issue.

Use of International Financial Reporting Standards (IFRS).

The Group financial statements of Wincor Nixdorf AG as of September 30, 2016, have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union and the provisions of commercial law to be additionally applied in accordance with Section 315a (1) of the German Commercial Code.

In fiscal 2015/2016, Wincor Nixdorf AG has applied the following amendments and changes to accounting standards for the first time:

  • Amendments to IAS 19: “Defined Benefit Plans: Employee Contributions” (to be applied for periods beginning on or after February 1, 2015)
  • Annual Improvements to IFRSs 2010-2012 Cycle (to be applied for periods beginning on or after February 1, 2015)
  • Annual Improvements to IFRSs 2011-2013 Cycle (to be applied for periods beginning on or after January 1, 2015)

The first-time application of the amendments and accounting standards had no material effect on the Group financial statements of Wincor Nixdorf AG as of September 30, 2016.

Accounting Standards Not Applied before the Effective Date.

In addition, the following amendments have been released by the IASB and adopted by the European Union until September 30, 2016; however, they are not yet applicable for the Group financial statements of Wincor Nixdorf AG in fiscal 2015/2016:

  • Amendments to IAS 16 and IAS 41: “Bearer Plants” (to be applied for periods beginning on or after January 1, 2016)
  • Amendments to IFRS 11: “Accounting for Acquisitions of Interests in Joint Operations” (to be applied for periods beginning on or after January 1, 2016)
  • Amendments to IAS 16 and IAS 38: “Clarification of Acceptable Methods of Depreciation and Amortization” (to be applied for periods beginning on or after January 1, 2016)
  • Annual Improvements to IFRSs 2012 – 2014 Cycle (to be applied for periods beginning on or after January 1, 2016)
  • Amendments to IAS 1: “Disclosure Initiative” (to be applied for periods beginning on or after January 1, 2016)
  • Amendments to IAS 27: “Equity Method in Separate Financial Statements” (to be applied for periods beginning on or after January 1, 2016)
  • Amendments to IFRS 10, IFRS 12 and IAS 28: “Investment Entities – Applying the Consolidation Exception” (to be applied for periods beginning on or after January 1, 2016)

In addition, the European Union incorporated the following International Financial Reporting Standard into existing law on September 22, 2016:

  • IFRS 15 “Revenue from Contracts with Customers including amendments to IFRS 15” (to be applied for periods beginning on or after January 1, 2018)

We intend to consider the standards, interpretations and amendments in our Group financial statements in the fiscal year in which they have to be applied, according to the guidelines of the European Union.

At the date on which the Group financial statements are issued, we do not expect any material effects resulting from the provisions that are not applied before the effective date on the presentation of the Group financial statements of Wincor Nixdorf AG at the moment of first-time application, with the exception of the provisions of IFRS 15, the effects of which on the Group financial statements are currently being examined.

Accounting Standards Not yet Adopted into EU Law.

In addition, the IASB has issued further standards and amendments of existing standards that the European Union has not yet incorporated into existing law:

  • Amendments to IAS 7: “Amendments Disclosure Initiative” (to be applied for periods beginning on or after January 1, 2017)
  • Amendments to IAS 12: “Amendments Recognition of Deferred Tax Assets for Unrealized Losses” (to be applied for periods beginning on or after January 1, 2017)
  • Amendments to IFRS 9 (2014): “Financial Instruments” (to be applied for periods beginning on or after January 1, 2018)
  • Amendments to IFRS 15: “Amendment Clarifications to IFRS 15” (to be applied for periods beginning on or after January 1, 2018)
  • Amendments to IFRS 2: “Amendments Classification and Measurement of Share-based Payment Transactions” (to be applied for periods beginning on or after January 1, 2018)
  • Amendments to IFRS 4: “Amendments Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts” (to be applied for periods beginning on or after January 1, 2018)
  • Amendments to IFRS 14: “Regulatory Deferral Accounts" (to be applied for periods beginning on or after January 1, 2016)
  • Amendments to IFRS 16: “Leases” (to be applied for periods beginning on or after January 1, 2019)
  • Amendments to IFRS 10 and IAS 28: “Amendments Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” and “Amendments Effective Date” (mandatory application date not yet known)

At the date on which the Group financial statements are issued, we do not expect any material effects resulting from the standards and amendments to existing standards that have not yet been incorporated into existing EU law on the presentation of the Group financial statements of Wincor Nixdorf AG at the moment of first-time application, with the exception of the provisions of IFRS 9 and IFRS 16, the effects of which on the Group financial statements still have to be examined.