At the end of the reporting period, Wincor Nixdorf had assets of € 1,110 million, down € 34 million (3 %) from the year before. The reduction in our asset base resulted from our decision to pay down financial debt and renew the Group’s financing arrangements.

Intangible assets decreased by € 18 million to € 401 million (previous year: € 419 million). The change is mainly the result of a € 26 million amortization of product know-how (previous year: € 28 million) capitalized during the demerger from the Siemens Group. This was offset by fresh capitalization of € 7 million worth of non-patented technology at BEB Industrie-Elektronik AG.

Tangible fixed assets increased by € 6 million to € 106 million (previous year: € 100 million). Investment was mainly in specialist tools, data-processing systems, computer workstations and other types of office and factory equipment.

Current assets, deferred tax assets and prepaid expenses fell by € 22 million to € 603 million (previous year: € 625 million). Current assets now represent 54 % of total assets. The value of inventories remained largely unchanged at last year’s level of € 237 million (previous year: € 235 million). As a result of higher levels of net sales revenue, trade receivables ended the year € 12 million higher than the year before. The liquid funds, which were used to offset financing debt, dropped € 14 million to € 51 million (previous year: € 65 million) due to a more active cash management. Deferred tax assets and prepaid expenses were € 2 million higher at € 40 million (previous year: € 38 million).

Equity, including minority interests, rose € 35 million to € 234 million (previous year: € 199 million). The ratio of equity to total capital employed was 21 % (previous year: 17 %).

Consolidated profit/loss in fiscal 2004/2005 increased by € 50 million to € 91 million, including net profit of € 56 million. The consolidated profit/loss declined as a result of dividend payments of € 20 million for the previous fiscal.

Other changes to Group equity are set out in the “Changes in Group Equity” table.

The Group’s accruals for pensions, taxes, operational business risks and personnel increased by € 30 million (previous year: € 34 million).

The group achieved a significant reduction in financial debt to € 227 million, down from € 325 million in the previous year, producing a sustained improvement in its financing structure. As of September 30, 2005, financing debt less liquid funds was € 176 million compared to € 234 million the year before.

On August 2, 2005, the existing syndicated loan financing was replaced by a new € 350 million revolving credit facility for the benefit of Wincor Nixdorf AG and Wincor Nixdorf International GmbH with a term of 7 years. The new syndicate consists of a group of 10 banks providing funds over terms of 1, 2, 3, 6 or 12 months, or other terms by agreement. Interest is payable at the EURIBOR rate plus a margin.

The new financing arrangements have increased the Company’s financial flexibility, firstly because the revolving nature of the facility means the amount of the loan is available throughout the entire term and, secondly, because with the exception of the end of the seven-year term there are no ongoing capital repayment obligations. The reduced interest rate margins also help ease our interest expenditure.