Wincor Nixdorf’s business is exposed to credit risks, currency risks and interest rate risks. The Group treasury function and the limitation of financial risk are conducted centrally. Interest expenses are mainly linked to the short-term variable market interest rate (EURIBOR), plus a margin. This margin is subject to change as certain financial ratios vary. Being tied to a market interest rate means that we are exposed to an interest rate risk. Rising interest rates could lead to interest expenses higher than originally planned. We have entered into interest rate options to hedge these risks. As a result, the interest rate on our financial debt fluctuates within a band between 1.75 % and 5.0 % (plus margin). In the fiscal year under review, we continued to reduce our financial liabilities.

The global nature of Wincor Nixdorf AG's business produces flows of deliveries and payments in different currencies. Incoming and outgoing payments in individual currencies are netted off against each other. Thus, by selecting suitable suppliers and making location-related decisions, we actively seek to generate natural hedging effects to the extent possible. The remaining currency exposures are then hedged mainly by means of currency futures. The netted-off amounts represent the exchange rate risk in each currency. The remaining currency risks are then hedged up to 100 % (depending on currency and volume) on a rolling 12-month basis by means of suitable financial instruments.

Financial instruments are not used to hedge against currency translation risks arising from the conversion of accounts of Group subsidiaries, which do not prepare their accounts in euros.

We reduce credit risks by consistently obtaining credit reports, setting credit limits and running a proactive debtor management function including a payment reminder system and active debt collection. Letters of credit are used to secure receivables from countries classified as presenting a credit risk.