WN FY201011 Annual Report

ANNUAL REPORT 2010/2011 WORLDS CONVERGING.
OCTOBER 1, 2010 TO SEPTEMBER 30, 2011
EXPERIENCE MEETS VISION.
Key Figures 2010/2011.
2010/20111
2009/2010 2
Change
Financial Statement ( million)

Net sales Gross profit Gross profit as a percentage of net sales Research & development expenses R&D expenses as a percentage of net sales Selling, general and administration expenses 3 SG&A expenses as a percentage of net sales Operating profit (EBIT) Goodwill amortization EBITA4 EBITA as a percentage of net sales (EBITA margin) Amortization/depreciation of property, plant and equipment and licenses and write-down of reworkable service parts EBITDA EBITDA as a percentage of net sales (EBITDA margin) Profit for the period Profit for the period as a percentage of net sales Earnings per share () 5 2,328 570 24.5% 100 4.3% 308 13.2% 162 0 162 7.0% 63 225 9.7% 108 4.6% 3.60 2,239 562 25.1% 101 4.5% 299 13.4% 162 0 162 7.2% 61 223 10.0% 106 4.7% 3.38 4% 1% 1% 3% 0% 0% 3% 1% 2%
Cash flow ( million)

Cash flow from operating activities Cash flow from investment activities 144 66
Sept. 30, 2011
154 62
Sept. 30, 2010
6% 6%
Change
1) 2) 3)
Key Balance Sheet Figures ( mil l i o n )

Working capital as a percentage of net sales Net debt Equity 6 263 11.3% 199 330 235 10.5% 134 358 28 65 28
Oct. 1, 2010Sept. 30, 2011. Oct. 1, 2009Sept. 30, 2010. including other operating income and expenses. 4) net profit on operating activities before interest, taxes and amortization of goodwill. 5) 2010/2011 calculated on basis of 29.776 million shares, 2009/2010 calculated on basis of 31.371 million shares. 6) including non-controlling interests.
Human Resources
Number of employees (September 30) 9,171 9,309 138
10 -ye ar Net Sales History.

01/02 2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 Change 7% 9% 11% 12% 10% 8% 3% 0% 4% 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10
m 10/11
10 - ye a r EBI TA H i s to ry.
01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10
m 10/11
2,145 1,948 1,744 1,345 1,440 1,576
2,319 2,250 2,328 2,239

300 250 200 150 100 50
186 137 88 104 116 161
206
179 162 162
Change
18%
12%
17%
18%
16%
11%
13%
9%
0%
The Company.
Wincor Nixdorf is one of the worlds most successful IT solution specialists for process optimization at the interface with consumers in the area of retail banking and retailing. Both industries are exposed to intense competition at an international level, forcing them to improve their business processes continuously.
www.wincornixdorf.com
Markets and Market Positions.

Wincor Nixdorf s portfolio of specialized sof tware and services for retail banks and retailers have made it one of the world leaders in its markets. We have established a market presence in more than 110 countries worldwide, 42 of which are served by our own subsidiaries. In the Hardware business, we are number 2 in Europe and the world in terms of the volume of ATMs supplied. We have established ourselves as Europes number 1 and the world number 2 for supplies of Electronic Point of Sale (EPOS) systems.
Market and Competition, see page 55
Solutions Portfolio and Core Competencies.

For our customers, the deployment of information technology is becoming more and more instrumental in achieving competitive grow th. We are committed to assisting them in enhancing essential consumer-facing processes, with a par ticular emphasis on their branch and store operations. For this purpose, we of fer them the best possible combination of innovative hardware and sof tware, complemented by high-end services. One of the key aims is to raise the overall ef ficiency of procedures and workflow, improve consumer-friendliness, and reduce process costs.
IT Solutions by Wincor Nixdorf. Our IT solutions components
Our complete Solutions Portfolio, see page 58 et seq.
Focusing on key customer processes
How we create value for our customers
Innovative Drive and Customer Focus as the Basis for Business Success.
Our skills as an innovator in the field of technical advancement are essential to our operating capabilities. In total, we invest at least 4% of our net sales in Research and Development each year (> 100 million). What is more, we work in close collaboration with global technology leaders within the area of IT, with the express purpose of transferring their latest advances to solutions made available to our customers. We are equally committed to maintaining a close dialog with our customers when it comes to reviewing and updating their business processes. In pursuing this approach, we are able to ensure the continuous progression of our solutions portfolio in line with both global and, at the same time, local market requirements associated with retail banking and retailing.
Research and Development, see page 81 et seq.
Our People the Key to our Success.

At the end of fiscal 2010/2011, the Wincor Nixdorf Group employed around 9,200 men and women around the globe. Given the strong international competition we face, it is their commitment and creativity that make all the dif ference and help to ensure our success.
Headcount by Regions.
Americas Employees, see page 83 et seq.
829
Asia/Pacic/Africa
1,734
3,985
Germany
Europe
2,623
Proven Growth Strategy.

Wincor Nixdorf makes use of four strategic levers to deliver sustained business success:
Global expansion Innovation Comprehensive portfolio of high-quality services Extension and application of our expertise
Growth Strategy, see page 56 et seq.
Global expansion focusing on grow th, par ticularly outside of Europe. Innovation we invest heavily in Research and Development for the purpose of cementing our position as an innovation leader. Comprehensive portfolio of high-quality services targeted expansion of complex services, e.g., Professional Services, Managed Services, and Outsourcing. Extension and application of our expertise to other related markets, e.g., postal industry and service stations.
2010/2011: Key Challenges Met.

Group: Lack of sustained market recovery Net sales grow by 4% EBITA unchanged year-on-year Growth in Software/Services by 6% Hardware business expands by 2% Business in Germany down on last years strong performance; Europe generates significant growth weaker trend in some Southern European markets; Americas fail to match last years buoyant sales; significant forward momentum in Asia/Pacific/Africa Stable cash flow; net debt remains low Substantial investments in R&D Innovative CINEO systems generate strong interest, with global market launch currently underway Segment Banking: Net sales up 2% to 1,527 million (2009/2010: 1,497 million) Share of Group net sales contracts slightly to 66% EBITA down 5% to 120 million (2009/2010: 126 million) Segment Retail: Encouraging grow th in net sales by 8% to 801 million (2009/2010: 742 million) Share of Group net sales increases to 34% EBITA up 17% to 42 million (2009/2010: 36 million)
Net Sales by Segment.
801m Retail Group Business Performance, see page 64 et seq.
Segment Performance, see page 67 et seq.
Net Sales by Business Stream.
Net Sales by Region.

356m Asia/Pacic/ Africa
15% 10% 27% 48%
34% 50% 66%

1,527m Banking 1,159m Hardware 1,169m Software/Services
50%
237m Americas
612m Germany
1,123m Europe
2011/2012: Primed for Volatile Market Environment.

Uncertainties arising from the impact of the sovereign debt crisis on banks, particularly in Europe Sustained growth in business within emerging markets Potential scenarios range from a small year-on-year reduction in net sales to an increase slightly above the previous years growth rate, while EBITA may fall markedly or edge up slightly on last years figure Wincor Nixdorf can rely on proven skills with regard to adaptability, as well as benefiting from the stability of key financial indicators such as cash flow and equity ratio Fundamental trends for IT in retail banking and retailing remain intact Investments in R&D continue to be substantial Expansion of activities in the emerging markets
Le tter to S har eholder s
M anagement
St ock
Cor por a t e G over na nc e
S uper v i s or y Boa r d Repor t
M a ga z i ne
Res pons i b i l i t y St a te m e n t
Worlds Converging.
As a provider of IT solutions for retail banks and retailers, Wincor Nixdorf has been straddling both worlds for a number of years. Those who have followed our progress over this period will have seen how rapidly many of the tasks performed in both industries have converged and how Wincor Nixdorf supports that convergence with new approaches and cutting-edge solutions. The relentless review of processes that had supposedly already reached best-in-class levels has revolutionized business operations in many ways in both industries. Hardware, sof tware, and IT services are merging to create new and ever-more intelligent systems. For our customers, this optimization of processes has meant greater productivity and less complexity. It has also strengthened customer loyalty, reduced costs, and helped Wincor Nixdorf to consolidate and expand its market position. At a regional level, too, the world is growing ever closer. Although our core market has traditionally been Europe, markets in the emerging countries are becoming more and more impor tant to us. These trends are illustrated on our front page. On closer inspection, what appears at first sight to be a chip card, for use at the bank or the checkout, shows a map of the world representing the unlimited scope of our markets. Even more detailed examination reveals a barcode, and in the background a series of conceptual process chains such as those that underlie all solutions. You can find out what all this means in practice for our customers and for Wincor Nixdorf in the latest edition of our magazine REENGINEERING PROCESSES on page 27. The article will help you to understand what we mean when we say Experience meets Vision.
Magazine REENGINEERING PROCESSES, see page 27 et seq.
G r o u p M a n ag e me n t Rep o rt
Gr oup Account s
Not es t o t he Gr oup Fi na nc i a l S t a t em ent s
Audi t or s Repor t
Fur t her Infor m a t i on
Contents.
Letter to Shareholders. The Management Team. Wincor Nixdorf Stock. Corporate Governance and Compensation Report. Supervisory Board Report. 4 6 8 12 22
MAGAZINE: REENGINERING PROCESSES.
27
Responsibility Statement. Group Management Report. Group Financial Statements. Notes to the Group Financial Statements. Auditors Report.
52 54 98 102 143
For a detailed table of contents relating to the Group Management Report, please refer to page 53. For a detailed table of contents relating to the Notes to the Group Financial Statements, please refer to page 97.
Glossary. Financial Calender, Editorial. International Subsidiaries
144 147 149
Cross references within the Annual Report Brief explanations Link to Internet Reference to nonnancial performance indicators QR code
4 Letter to Shareholders
M anagement
St ock
M a ga z i ne
One of the most significant challenges facing Wincor Nixdorf AG over the last fiscal year was to formulate a response to the lack of any sustained recovery in our key markets. Today, I can inform you that it was a challenge Wincor Nixdorf successfully met, with a four percent increase in net sales and operating profit maintained at last years level. It is equally important for both our shareholders and the Company that you share in this performance, as we again intend to propose a dividend of 1.70 to the Annual General Meeting. In doing so, we are maintaining our established dividend policy of distributing around fifty percent of our profit for the fiscal year. We believe this demonstrates the consistency and reliability of our approach to shareholders. Although there has been no sign of a sustained market recovery in recent months the economic situation in some countries of Southern Europe is a case in point one factor at least remains constant in our markets with regard to the fundamental trends in retail banking and the retail industry. Both industries have shown that investment in information technology is critical to success in response to intense and ever-greater competition. The need for streamlining remains strong in our established markets for both retail banks and retailers. In this context, the global introduction of our new CINEO systems another major challenge facing us last fiscal year is of particular importance to our business. CINEO is geared specifically towards the needs of both industries in the area of automation and rationalization, and has considerable potential for our business in the medium term. However, our success will largely depend on how fast the business environment stabilizes so that companies are again more willing to invest.
Gr oup Account s
Audi t or s Repor t
While our established markets are of course very important to us, so is growth in the emerging countries, which now account for almost twenty percent of global IT investment by retail banks and retailers. For this reason, we are particularly delighted by our success in these regions to date. Thus, there can be no doubt that Wincor Nixdorf is committed to growth. We want to consolidate our existing success and, indeed, build on it. At the heart of our efforts to do so is our corporate strategy, which focuses on delivering innovative systems such as CINEO and new software products. It also includes our expansion in markets outside Europe and the expansion of our portfolio of high-end services. Finally, our strategy involves achieving growth by applying the expertise we have gained in the retail banking and retail industries to other areas, such as the branch operations of postal service providers and service station operators. The fact that we have been able to implement and push even further ahead with this strategy in the last twelve months is a testament to our global workforce of around 9,200 employees. I would like to take this opportunity to express my gratitude for their tremendous commitment over the last fiscal year. Thanks are also due to our customers, whose confidence is the very foundation of our success. Indeed, it is the challenge of retaining your confidence that motivates and drives us. To conclude, let me take a brief look ahead. We expect conditions in the current fiscal year 2011/2012 to be very challenging indeed, especially in Western Europe, as a result of the sovereign debt crisis and a weakening economic climate. It has already become evident that the current level of uncertainty is affecting the willingness of European banks in particular to invest. Compensating for this will not be easy, even allowing for continued healthy growth in the emerging economies. At 75 percent, Europe simply accounts for too big a share of our overall net sales. In light of these imponderables and uncertainties, we are not able to offer a reliable forecast for 2011/2012: as regards net sales, the potential scenario ranges from a slight downturn to a moderate increase, while operating profit may contract significantly or expand slightly. Consequently, we feel it is particularly important to be prepared. We want to be able to respond quickly and flexibly if the crisis becomes even more acute, or, as might also be the case, if demand picks up. We have already demonstrated this capacity to adapt on many occasions and will strive to maintain it. Even so, further personnel adjustments cannot be excluded. These may involve accelerating our existing plans to increase the size of our workforce in the Asia/Pacific/Africa region, while further reducing staff in Germany and Western Europe in response to the prevailing uncertainty currently affecting the European market in particular. As you will know from our past record, Wincor Nixdorfs policy is to remain flexible and adaptable in challenging situations, while prioritizing financial solidity and stability. As our shareholders, you can continue to rely on these strengths. Thank you for placing your trust in Wincor Nixdorf. I can assure you that we will continue to do all we can to live up to your justifiable expectations of our Company. Regards,
Eckard Heidloff
Le tter to S har eholder s Management
St ock
M a ga z i ne
Thomas Fell
Rainer Pfeil
Reinhard Rabenstein
Jens Bohlen
Senior Vice President, Retail Born 1968. Joined Wincor Nixdorf in November 2010 and since then Member of the Executive Board; responsible for the Retail business.
Senior Vice President, Human Resources Born 1962. Joined Wincor Nixdorf in July 2001; since then Member of the Executive Board; responsible for Human Resources.
Senior Vice President,

CTO
Senior Vice President, Services Born 1962. Since November 2006 at Wincor Nixdorf and Member of the Executive Board; responsible for the IT services business with banks and retail companies.
Born 1954. Joined Nixdorf in 1980. Since October 2005 Member of the Executive Board and Chief Technology Officer.
Gr oup Account s
Audi t or s Repor t
Dr. Jrgen Wunram

Member of the Board of Directors Executive Vice President,
CFO, COO
Eckard Heidloff
President & Chief Executive Officer
Stefan Auerbach
Member of the Board of Directors Executive Vice President, Banking
Khoon Hong Lim
Javier Lpez-Bartolom
Senior Vice President, Region Asia-Pacific Born 1951. Joined Nixdorf in 1988. Member of the Executive Board since October 2005 and responsible for Group business in Asia-Pacific.
Senior Vice President, Region Americas Born 1959. Joined the Company in 1997. Member of the Executive Board since 1999; responsible for the Group business in the Americas.
Born 1958. Joined the Company in March 2007 and since then Member of the Board of Directors; responsible for finances.
Born 1956. Joined Nixdorf in 1983. President & CEO since January 29, 2007.
Born 1963. Joined Nixdorf in 1983. Member of the Board of Directors, since October 2005; responsible for the Banking business.
M anagement Stock
M a ga z i ne
Wincor Nixdorf Share Performance Subdued
Proposed Dividend of 1.70 per Share
Share Performance Well Below Market as a Whole.

Share Performance. At the end of the reporting period, Wincor Nixdorf stock closed at 33.80, nearly 30% down on its opening price as of October 1, 2010. This downturn was much
more pronounced than that of the MDAX, which lost only 5% over the same period.
Performance of Wincor Nixdorf Sha re s Com pa re d to M DA X a nd M S C I Worl d .

140%
130% 60 120%
110% 50 100% 94.9% 93.2% 40 80%
90%
70.4% 30
October 2010 Wincor Nixdorf MDAX (Performance Index) November December January 2011 MSCI World February March April May June July August September
70%
60%
Gr oup Account s
Audi t or s Repor t
W i n cor Nixdorf Shares Key Facts & Figures .

(Data adjusted after capital increase, executed on March 22, 2007, through issuance of shares in a ratio of 1:1)
2010/2011 2 0 0 9 /2 0 1 0 2 0 0 8 /2 0 0 9 2 0 0 7 /2 0 0 8 2 0 0 6 /2 0 0 7
Opening price (Xetra) Fiscal year-end price (Xetra) Fiscal year high (Xetra) Fiscal year low (Xetra) Number of shares as of September 30 Number of shares outstanding (free float) as of September 30 Free float Market capitalization as of September 30 Total dividend Dividend per share Dividend yield (based on fiscal year-end price) Earnings per share 2
1) Proposed 2) Profit
48.00 33.80 63.45 31.55 33,084,988 29,776,490 90.0% 1,006m 51m1 1.701 5.03% 3.60
43.70 47.83 55.49 38.55 33,084,988 31,370,717 94.8% 1,500m 53m 1.70 3.55% 3.38
41.74 44.01 45.26 26.90 33,084,988 31,664,008 95.7% 1,394m 59m 1.85 4.20% 3.69
59.00 41.49 69.19 39.73 33,084,988 31,664,008 95.7% 1,314m 67m 2.13 5.13% 4.26
57.62 58.00 75.00 50.75 33,084,988 32,382,208 97.9% 1,878m 88m 2.78 4.79% 3.62
dividend. for the period (up to 2008/2009 before carve-out charges) based on shares outstanding.
The following points can be observed in relation to the performance of Wincor Nixdorf stock in the fiscal year just ended: Overall share prices generally rose up to July 2011 with occasional downturns. In August 2011, there was an abrupt slump in the market as a whole in response to the European debt crisis; the subsequent trend remained downwards with considerable fluctuations. Wincor Nixdorf stock largely outperformed the market as a whole up to around mid-March 2011. The stock fell abruptly in early May following a change in the Groups net sales and profit forecast for the fiscal year 2010/2011. From July 2011 onward, Wincor Nixdorf shares fell at a more pronounced rate as part of a dramatic slide in the overall market. The lowest trading price for the reporting year was 31.55 on September 23, 2011, while the highest figure of 63.45 was achieved on February 15, 2011. The average trading volume of Wincor Nixdorf shares on all German stock exchanges declined from 4.1 million shares per month in fiscal 2009/2010 to 3.8 million shares traded per month during fiscal 2010/2011.
B a s i c Da ta .
Date first traded Issue price Stock exchange Prime sector Total number of shares WKN (German securities no.) ISIN May 19, 2004 20.50 Frankfurt Securities & Stock Exchange (Prime Standard) Industrial 33,084,988 shares with a nominal value of 1.00 each A0CAYB DE000A0CAYB2
Index Membership. According to data issued by Deutsche Brse for September 2011, Wincor Nixdorf is ranked 25th in the MDAX index on the basis of market capitalization (previous year: 18th) and also 25th (previous year: 19th) on the basis of trading volume. Both criteria are particularly important to make the stock more appealing to institutional investors.
Index Included since
MDAX MSCI World Index (World Small Cap) Dow Jones STOXX 600 Kempen SNS European Smaller SRI Index (Socially Responsible Investment)
September 20, 2004 June 1, 2005 June 19, 2006 October 1, 2007
10
M anagement Stock
M a ga z i ne
Shareholder Structure: Broad Scope of International Ownership. A total of 90% of Wincor Nixdorfs
Details concerning Directors Dealings at www.wincornixdorf.com, Section: Investor Relations
stock (excluding treasury shares) is in free float. Based on the announcements issued pursuant to Section 21 of the German Securities Trading Act (Wertpapierhandelsgesetz WpHG), at the end of the reporting period the following entities each held an interest in Wincor Nixdorf in excess of the disclosure threshold: Aberdeen Asset Management PLC (over 3%) AMUNDI S.A. (over 3%) DWS Investment GmbH (over 5%) Details concerning Directors Dealings pursuant to Section 15a WpHG are published on the Companys website at www. wincor-nixdorf.com in the section entitled Investor Relations. According to our own estimate, at the end of the reporting period, approx. 80% of Wincor Nixdorf shares were held by investors domiciled abroad. A significant proportion of these shares are held particularly by investors based in France, the United Kingdom, and the United States of America.
Inve sto r Relations Ongoing Comm uni c a ti o n more Important than Ever in Tim e s of C ri s i s .
For Wincor Nixdorf, all Investor Relations activities are centered around open and proactive financial communication. We are committed to providing investors and analysts with information on the strategic direction and development of our Company in a comprehensive and timely manner. We aim to generate confidence by establishing an ongoing dialog with the capital markets. During fiscal 2010/2011, we held a total of 30 road shows and conferences in Austria, Canada, Denmark, France, Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom, and the United States of America as a means of fostering close relations with existing partners and establishing new contacts.
We also conducted numerous one-on-one meetings with investors at our headquarters in Paderborn. These included a tour of the plant and product presentations, allowing visitors to gain a comprehensive insight into our Company and portfolio. Coinciding with our annual Wincor World in-house exhibition in Paderborn, we organized the 7th Wincor Nixdorf Investors Day on January 25, 2011, which included an extensive range of information for investors and analysts. In all, the Board of Directors and the Investor Relations team held talks with well over 200 institutional investors in the reporting period. Fund managers from France, the United Kingdom, and the U.S. in particular showed a strong interest in our Company. Following the publication of our quarterly reports and provisional results for fiscal 2010/2011, we discussed our financial situation and business performance in the respective segments at length during several conference calls with analysts and investors. All ad hoc announcements, press releases, and quarterly reports are published promptly on our website, both in German and English. The website also contains extensive information on our share buyback programs, corporate structure, management, and strategy, in addition to providing details on corporate governance and our Annual General Meetings.
A n a l y s t C ove ra ge . At the end of the fiscal year under
review, the Company was officially covered by 22 financial analysts, who issue comments and recommendations on a regular basis. These analysts are (in alphabetical order): Bank of America Merrill Lynch, Bankhaus Lampe, Berenberg Bank, Cheuvreux, Commerzbank, Deutsche Bank, DZ Bank, equinet Bank, Fairesearch, Goldman Sachs, HSBC Trinkaus & Burkhardt, Kepler Capital Markets, LBBW, MainFirst, Metzler Equity Research, M.M. Warburg, Nord/LB, Silvia Quandt Research, UBS, Unicredit, Wedbush Morgan Securities, and WestLB.
A n n u a l G e n e ra l M e e ti ng. Shareholders attending the
Next AGM: January 23, 2012
Annual General Meeting (AGM) of Wincor Nixdorf AG in Paderborn, Germany, on January 24, 2011, represented over 68% of the Companys voting rights. All resolutions on the agenda were passed with very large majorities. The next Annual General Meeting is scheduled to take place in Paderborn on January 23, 2012.
Gr oup Account s
Audi t or s Repor t
11
D i v i d e nd Re mains Stable. For fiscal 2009/2010, we paid a dividend of 1.70 per share. For fiscal 2010/2011, the Board of Directors and the Supervisory Board intend once again to propose a dividend of 1.70 per share to the Annual General Meeting. This represents a dividend yield of 5.03% based on the fiscal year-end price of Wincor Nixdorf stock. This means that the Board of Directors will again follow the dividend strategy established at the time of flotation, according to which around 50% of profit for the year would be distributed to shareholders. D e velopme nt of Dividend.
Fiscal year 3.00 2.50 2.00 1.50 1.00 0.50 0.90 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11
Tre a s u ry S h a re s . On August 3, 2010, the Board of Direc-
2.78 2.13 1.85 1.70 1.70 2 1.40 1.05 0.61

+72% +33% +34%1 +13% 13% 8% 0% 1.88
Change on previous year

1) Including 2) Proposed
extra dividend +99%. dividend.
tors of Wincor Nixdorf AG adopted a resolution to buy back up to 400,000 shares in the Company through the stock exchange in the period between August 3 and November 3, 2010. This decision followed the corresponding authorization given by the AGM to repurchase the Companys own shares. The Company repurchased the remaining 106,709 shares under this program at an average price of 48.17 between October 1 and October 6. On May 4, 2011, the Board of Directors of Wincor Nixdorf AG adopted a resolution to buy back up to 1,737,569 shares in the Company through the stock exchange in the period between May 4 and September 30, 2011. This decision followed the corresponding authorization given by the AGM to repurchase the Companys own shares. The stock buy-back program was completed on June 16, 2011. In total, 1,737,569 shares were acquired at an average price of 48.35. The repurchased shares are intended for all purposes admitted by the law and covered by the authorization given by the AGM, in particular to fulfill the Companys obligations in respect of the share options already issued or to be issued to members of the Board of Directors, other managerial staff, and employees of the Company and/or subordinate associated companies. At the end of the reporting period, the Company held a total of 3,308,498 treasury shares, equivalent to 9.99% of its share capital, as a result of repurchase programs from fiscal 2006/ 2007 up to 2010/2011.
12
M anagement
St ock Corporate Governance
M a ga z i ne
Essential basis for commercial success Constructive dialog between Board of Directors and Supervisory Board Open communication with shareholders and stakeholders ComWell-functioning risk management system as pliance as a fundamental management task Detailed account of annual compensation for a prerequisite for responsible governance Board of Directors and Supervisory Board
Corporate Governance and Compensation Report.

At Wincor Nixdorf, responsible, transparent business management and control centered on the creation of sustained added value is considered an essential basis for commercial success. Indeed, corporate governance has been an integral element of management for many years. The Board of Directors and the Supervisory Board have issued the statutory statement of compliance in accordance with Section 161 of the German Stock Corporation Act (Aktiengesetz AktG), stating that, with the exceptions specified therein, Wincor Nixdorf complies with all the recommendations of the German Corporate Governance Code. Adherence to this Code is monitored by the Board of Directors and the Supervisory Board. Issued annually, the statement of compliance is permanently available to all shareholders on the Internet at www.wincor-nixdorf.com under the heading of Investor Relations.
Close Collaboration between Bo a rd of D i re c tors and Supervisory Board. A relationship based on close collaboration and mutual trust exists between the Board of Directors and the members of the Supervisory Board. The Board of Directors reports regularly to the Supervisory Board on the progress of business activities. There is also an ongoing and constructive dialog concerning strategy, corporate planning, and Company profitability. For further details, please refer to the Supervisory Board Report. The Supervisory Board convened five scheduled meetings in the fiscal year under review. In addition, it held one extraordinary meeting during this period. The report prepared by the Supervisory Board contains further details of board meetings convened over the course of the fiscal year. The Supervisory Board has established four committees: a Mediation Committee, pursuant to Section 27 (3) of the German Co-Determination Act (Mitbestimmungsgesetz MitbestG); a Personnel Committee, dealing especially with the preparation of staff issues that pertain to the Board of Directors as well as with the preparation of the compensation structure for the Board of Directors; a Nomination Committee, responsible for preparing the candi-
date proposals put forward by the Supervisory Board to the Annual General Meeting for the subsequent Supervisory Board elections; and an Audit Committee. No conflicts of interest arose among members of the Board of Directors and members of the Supervisory Board.
TR A NS PA R ENCY A ND C OM PLIA NC E.
Internal and External Transparency. Wincor Nixdorf is committed to providing comprehensive, continuous and prompt information in its communications with the Companys shareholders. As regards the Annual General Meeting of Shareholders (AGM) on January 23, 2012, we will again appoint a proxy vote representative so that shareholders not attending the AGM can be given the opportunity to exercise their voting rights. Shareholders will be able to issue their instructions via the Internet prior to the AGM. With a view to ensuring prompt and open communication with the public, we provide detailed documents and information on our website. This includes AGM information, financial reports, current ad hoc announcements, and press releases. Our online content also includes the Companys Articles of Association, the Code of Conduct and information on Directors Dealings.
www.wincornixdorf.com, heading: Investor Relations
Supervisory Board Report, see page 22 et seq.
Directors Dealings, for further information visit www.wincornixdorf.com, heading: Investor Relations
Compliance.
For Wincor Nixdorf AG, responsible and lawful conduct is a prerequisite for quality, business success, and sustainable corporate development. The Board of Directors therefore regards compliance as a fundamental management task and has pledged in its compliance statement to respect the law, while expressly acknowledging the need for lawful, social, and ethical conduct. Wincor Nixdorf has designed a Compliance Management System (WN CMS) tailored to the requirements of an interna-
Gr oup Account s
Audi t or s Repor t
13
tional group. This involves determining compliance targets and the overall focus of the CMS, in particular the promotion of a favorable compliance culture; establishing compliance as a strategic developmental and procedural structure; analysis of compliance-relevant stakeholder relationships; the process of devising the compliance program; and the development of communication and qualification processes, from measures to identify potential breaches through to the ongoing development of the CMS.
A i m s of the CMS. The WN CMS is an organizational
model integrated into the strategic and operational business and based on values. Its purpose is to ensure ongoing compliance with the law and internal rules. The overarching objective is to ensure that the Companys managing bodies and employees conduct themselves within legal constraints and in line with internal rules in order to minimize liability risks, avoid financial and indirect damage to the enterprise, and strengthen its market and public reputation.
Fo c us on Values and Corporate Culture. Corpo-
rate culture is a key aspect of an efficient CMS. A corporate and management culture that focuses not only on compliance with the law but also on values such as transparency and fair competition provides a solid framework to guide the actions of all those who belong to the Company when dealing with difficult situations. It helps to protect the Company against damage through breaches of the law or internal rules by Company personnel, enhances its reputation and boosts its long-term competitiveness. The core mechanisms of the WN CMS are the Code of Conduct, which reflects the value-based corporate culture of the Group and is binding on its entire international workforce, and the Code of Conduct for Wincor Nixdorfs suppliers, which is integrated into purchasing contracts. A number of additional rules (e.g., the Corporate Hospitality Guide) have also been released to provide guidance on issues such as gifts, entertainment, and invitations. A great deal of importance is attached to our regular compliance training courses, based partly on attended sessions and partly online. Our existing communications program was also maintained over the reporting period. This includes our quarterly compliance newsletter and the compliance portal on the Wincor Nixdorf intranet. Furthermore, the Compliance Officer is available to advise employees on all matters relating to the WN CMS.
Structure. At Wincor Nixdorf, the overall compliance struc-
agement is linked to our business activities so that it remains an ongoing and integral part of existing processes; at the same time, we have developed a Compliance Officer System that supports management by implementing and carrying out compliance measures. As long ago as 2007, Wincor Nixdorf appointed a Chief Compliance Officer (CCO) at holding level with authority to report directly to the Board of Directors and the Audit Committee of the Supervisory Board. The Compliance Officer is responsible for coordinating and managing the global implementation and monitoring of compliance measures and for ongoing development of the WN CMS. The role of the local compliance officers (Local COs) appointed within Group companies is to ensure that the CMS is implemented and observed at regional level and to report back to the CCO. A CMS checklist devised in the last fiscal year now makes it possible for Local COs to conduct regular checks on their regionally implemented CMS in order to identify any need for improvement. The WN CMS is subject to an ongoing process of development to ensure that we can respond to changes in the legal and economic conditions governing our international business. Either directly or indirectly, the Board of Directors and the Supervisory Board hold shares or options in Wincor Nixdorf AG equivalent to more than 1% of the Companys share capital. Together, the members of the Board of Directors hold 1.64% and the members of the Supervisory Board 0.27% of the Companys share capital. Details of Directors Dealings pursuant to Section 15 a of the German Securities Trading Act (Wertpapierhandelsgesetz WpHG) can be downloaded from the Investor Relations section of the Companys website. A list of all third-party entities in which Wincor Nixdorf AG holds an interest deemed to be not of minor significance has been included in the annual financial statements of Wincor Nixdorf AG. The annual financial statements of Wincor Nixdorf AG are published, among other places, on the Companys website.
R IS K M A NAGEM ENT SYSTEM FOR VA LUELED C OR POR ATE M A NAGEM ENT. Responsible corporate governance is dependent on a properly functioning risk management system. The risk management system implemented by Wincor Nixdorf is geared toward meeting the practical requirements of our business. It is designed to
ture has two key elements. On the one hand, Compliance Man-
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highlight risks at an early stage and to help avoid or limit them where they occur. Further details are provided in the Group Management Report in the section entitled Risk Report.
E XC E P T IONS TO T H E C O R P O R AT E GOV E RNA NCE C ODE. Under Section 161 of the German Stock Corporation Act (Aktiengesetz AktG), the Board of Directors and the Supervisory Board of stock exchange-listed companies are obliged to issue a declaration each year stating that the recommendations of the Code of the Government Commission on German Corporate Governance, as published by the German Federal Ministry of Justice in the official section of the Federal Gazette (electronic version), have been and are being met. This declaration must also specify which recommendations have not been or are not being applied and why not.
Exceptions to the Corporate Governance Code.
In accordance with Section 161 AktG, the Board of Directors and the Supervisory Board of Wincor Nixdorf AG issued a new declaration of compliance on November 23, 2011. I. Since its last declaration of compliance on November 24, 2010, Wincor Nixdorf AG has complied with the recommendations of the German Corporate Governance Code, in the version dated May 26, 2010 (published in the Electronic Federal Gazette on July 2, 2010), with the five exceptions detailed below: 1. At its Annual General Meeting, the Company does not exercise the option to hold an absentee ballot (postal vote) granted by its Articles of Association (Section 2.3.3 Sentence 2 GCGC). Reasons: The GCGC does not actually recommend that companies offer to hold an absentee ballot; it merely recommends that companies support shareholders in the holding of an absentee ballot in the event that the Board of Directors decides to make this option available. Following the Annual General Meeting on January 25, 2010, in accordance with the option granted by Section 118 (2) AktG, Wincor Nixdorf AG took the precaution of introducing a new clause into its Articles of Association authorizing the Board of Directors to allow an absentee ballot. However, an absentee ballot does not provide any recognizable additional benefit to shareholders in the personal exercise of their rights when compared to the proxy voting service offered by Wincor Nixdorf AG up to the day of the Annual General Meeting, under the terms of which proxies are bound
by written or electronic voting instructions. Consequently, the Board of Directors does not intend to exercise the option of holding an absentee ballot. 2. The D&O insurance policy agreed by Wincor Nixdorf AG does not feature a policy deductible for the Supervisory Board (Section 3.8 Paragraph 3 GCGC). Reasons: The D&O insurance policy agreed by Wincor Nixdorf AG does not feature a policy deductible for the Supervisory Board, in particular no such deductible of at least 10% of the damage up to at least one and a half times the fixed annual remuneration. The D&O insurance policy was taken out for a significant number of management staff across the entire Wincor Nixdorf Group, at home and abroad, including members of the Companys boards. When the policy agreement was signed, it did not appear proper to differentiate between Board members and other management staff; equally there was no legal requirement to do so. Effective from July 1, 2010, only insurance policies for members of the Board of Directors were to be amended pursuant to Section 93 (2) Sentence 3 AktG in conjunction with Section 23 (1) Sentence 1 of the Introductory Act to the Stock Corporation Act (Einfhrungsgesetz zum Aktiengesetz EGAktG). There is no stipulation in the legislation (Section 116 Sentence 1 AktG) of a mandatory policy deductible for the Supervisory Board; indeed, the Supervisory Board is specifically exempted from such a mandatory policy deductible. Given the nature of the role of the Supervisory Board, which is also clear from that Boards different remuneration structure, this distinction in the treatment of the Board of Directors and the Supervisory Board appears commensurate, especially since the insurance policies have not been changed for other senior managers. Consequently, it does not appear proper to extend the policy deductible in the D&O insurance policy held by Wincor Nixdorf AG to members of the Supervisory Board. 3. The contracts of members of the Board of Directors of Wincor Nixdorf AG did not contain rules on severance payments in the event of the early termination of a members service by the Company without good cause (Section 4.2.3 Paragraph 4 GCGC). Reasons: The contracts of members of the Board of Directors of Wincor Nixdorf AG did not contain rules on severance payments in the event of the early termination of a members service by the Company without good cause. Since the early termination of a members service by either party presupposes the existence of good cause and Wincor Nixdorf regularly concludes and maintains service contracts for members of the Board of Directors for the duration of their period of office in line with the German Stock Corporation Act, no such rules on
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severance payments were applied in the past. To avoid the need to declare a departure from Section 4.2.3 Paragraph 4 GCGC, the service contracts of members of the Board of Directors have now been amended to include a corresponding provision for a settlement cap in the event of the early termination of a members service without good cause. The provision makes reference to Section 4.2.3 Paragraph 4 GCGC. 4. In setting the level of remuneration paid to members of the Supervisory Board, no account is taken of chairmanship of any committee other than the Audit Committee, or of membership of any of the Supervisory Board committees (Section 5.4.6 Paragraph 1 Sentence 3 GCGC). Reasons: Remuneration for mere membership of a committee is deemed unnecessary. As regards the activities of the Supervisory Board, practice has shown that the vast majority of committee meetings are scheduled to coincide closely with meetings of the Supervisory Board itself. Chairmanship of the Audit Committee is remunerated separately due to the additional time and effort required by the role. 5. Members of the Supervisory Board are not paid any performance-related remuneration in addition to their fixed emoluments (Section 5.4.6 Paragraph 2 Sentence 1 GCGC). Reasons: In the Companys view, a fixed remuneration for members of the Supervisory Board is more appropriate given that the bodys supervisory function is independent of the Companys performance. II. Wincor Nixdorf AG will, in future, comply with the recommendations of the Code of the Government Commission on German Corporate Governance in the version dated May 26, 2010 (published in the Electronic Federal Gazette on July 2, 2010), with the following four exceptions: 1. At its Annual General Meeting, the Company does not exercise the option to hold an absentee ballot (postal vote) as granted by its Articles of Association (Section 2.3.3 Sentence 2 GCGC). Reasons: See above under I. 1. 2. The D&O insurance policy agreed by Wincor Nixdorf AG does not feature a policy deductible for the Supervisory Board (Section 3.8 Paragraph 3 GCGC). Reasons: See above under I. 2. 3. In setting the level of remuneration paid to members of the Supervisory Board, no account is taken of chairmanship of any committee other than the Audit Committee, or of membership of any of the Supervisory Board committees (Section 5.4.6 Paragraph 1 Sentence 3 GCGC). Reasons: See above under I. 4.
4. Members of the Supervisory Board are not paid any performance-related remuneration in addition to their fixed emoluments (Section 5.4.6 Paragraph 2 Sentence 1 GCGC). Reasons: See above under I. 5.
OB JEC TIV ES OF TH E S UPERV IS ORY B OA R D IN R ELATION TO ITS C OM POS ITION C UR R ENT STATE OF IM PLEM ENTATION. According to Section 5.4.1 Sentence 5 GCGC, the Corporate Governance Report should contain details of the specific objectives of the Supervisory Board in relation to its composition and with due regard for the organizations international activities, potential conflicts of interest, the stipulation of an age limit for members of the Supervisory Board, and diversity, the latter especially in terms of achieving an appropriate level of involvement of women. The report should also evaluate the state of implementation of these objectives. To this end, at its meeting on September 27, 2011, the Supervisory Board set out its objectives in relation to the composition of the Board as follows: As required by the German Co-Determination Act, the Supervisory Board of Wincor Nixdorf AG is made up of six shareholder representatives and six employee representatives. A ballot to elect the six employee representatives on the Supervisory Board was held on December 89, 2010, with the result that the end of their terms of office will coincide with the end of the Annual General Meeting in January 2016. Neither the Supervisory Board nor the Company exerted any influence on the proposals for election. The Supervisory Board or, at a preliminary stage, its Nomination Committee may only exert an influence on the election of the six shareholder representatives through its right to propose candidates to the Annual General Meeting.
O b j e c ti ve s :
The specific objectives for the composition of our Supervisory Board are therefore limited to the composition of the six shareholder representatives: a) With regard to the international activities of the Company. The international activities of Wincor Nixdorf AG have previously been taken into account in the composition of the shareholder representatives on the Supervisory Board and will continue to be taken into account when the Supervisory
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Board submits candidate proposals to the Annual General Meeting. The key factors here are a knowledge of spoken and written English, professional experience (either in management or on another supervisory body) in other German or foreign companies of a comparable size with an international presence, and an understanding of global economic issues in relation to manufacturing, sales, or services. This requirement for candidates to have an international profile does not necessarily mean that the Supervisory Board should include one or more foreign nationals. German citizens can also provide the desired international experience, e.g., as a result of time spent working in another country. b) Avoiding potential conflicts of interest. Potential conflicts of interest are avoided at an early stage when the Supervisory Board submits its proposed candidates to the Annual General Meeting. With the exception of the Chairperson of the Supervisory Board, who held the position of Chief Executive Officer of Wincor Nixdorf AG up to January 29, 2007, no other former members of the Board of Directors of Wincor Nixdorf or former Wincor Nixdorf general managers serve on the Supervisory Board as shareholder representatives. When it submits the names of proposed candidates to the Annual General Meeting, the Supervisory Board ensures that the candidates in question do not perform a managerial, advisory, or supervisory role on behalf of one of the Companys competitors, suppliers, lenders, or customers. This avoids conflicts of interest from the outset. In the event that a conflict of interest arises during the period of office of a member of the Supervisory Board, the person in question is required to disclose that conflict to the Supervisory Board via the Chairperson and, providing the conflict of interest is significant and not just temporary, to stand down. c) Stipulation of an age limit. The age limit, i.e., the expiry of a serving members term of office at the end of the Annual General Meeting after which that person reaches the age of 70, is already stipulated in the Companys Articles of Association (Article 7 Paragraph 6). d) With regard to diversity. Due regard must be given to issues of diversity in the composition of the Supervisory Board. In particular, the Supervisory Board must provide for an appropriate level of female representation. At present, the Supervisory Board is made up of one female and eleven male members. Diversity is reflected in the varying professional careers and activities of shareholder representatives and in terms of the Boards international profile their different international experiences. In cases where male and female candidates are equally qualified and suitable, due regard should be given to the appointment of a female candidate. The Company aims to
ensure that there continues to be at least one female member of the Supervisory Board.
Sta te of I m p l e m e nta ti o n of O b j e c ti ve s :
Details of the current state of implementation of the objectives presented above under a) to d) for the composition of the Supervisory Board are given below: The objectives relating to a) With regard to the international activities of the Company, b) Avoiding potential conflicts of interest, and c) Stipulation of an age limit have already been met. Objective d) Diversity including the appropriate participation of female representatives on the Supervisory Board is given due consideration by the Boards Nominations Committee when it looks for suitable candidates to replace shareholder representatives who leave the Board. Unfortunately, no female candidate with appropriate international experience was available out of the pool of suitable candidates for inclusion in the Boards proposal to the Annual General Meeting on January 23, 2012, for the election and appointment of two new members; however, the Nominations Committee and the Supervisory Board have set a target of continuing to look for suitable female candidates as shareholder representatives on the Board.
AUD IT OF GROUP FINA NC IA L STATEM ENTS BY K PM G. The Group financial statements of Wincor Nixdorf AG for the fiscal year ended September 30, 2011, have been prepared in accordance with International Financial Reporting Standards (IFRS) as applicable in the European Union, supplemented by the statutory requirements laid out in Section 315a (1) of the German Commercial Code (HGB). The consolidated financial statements have been audited by the accountancy firm KPMG AG.
C OM PENS ATION R EPORT. The information contained in the compensation report forms an integral part of the Group Management Report. Therefore, the Notes to the Group financial statements include no additional presentation of details discussed as part of the compensation report. The compensation report outlines the key principles applied when determining remuneration levels for the Board of Direc-
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tors of Wincor Nixdorf AG. It also describes the structure and level of compensation for the Board of Directors. In addition, it details the principles and level of Supervisory Board compensation. The compensation report has been prepared in conformity with the recommendations of the German Corporate Governance Code (in the version of May 26, 2010) and includes information which, in accordance with the requirements of German commercial law, amended by the Act on the Disclosure of Management Board Compensation (Gesetz ber die Offenlegung der Vorstandsvergtungen VorstOG) of August 3, 2005, forms an integral part of the Notes to the Group financial statements pursuant to Section 314 of the German Commercial Code (Handelsgesetzbuch HGB) and the Group Management Report pursuant to Section 315 HGB.
Sy s tem of Compensation for the Board of D i rectors. The Supervisory Board of Wincor Nixdorf AG, acting
on the recommendations of its Personnel Committee, which deals with the employment contracts of members of the Board of Directors, determines the overall level of compensation for each member of the Board of Directors. Additionally, it regularly reviews and makes decisions relating to the compensation system for the Board of Directors, as well as the appropriateness of total compensation payable to each member of the Board of Directors, including all significant elements within the contract. The requirements of the Act on the Appropriateness of Management Board Compensation (Gesetz zur Angemessenheit der Vorstandsvergtung VorstAG) dated July 31, 2009, have been met with regard to existing employment contracts and to the extension of employment contracts with members of the Board of Directors. The compensation of members of the Board of Directors of Wincor Nixdorf AG is determined on the basis of the Companys size and global presence, its economic and financial situation as well as the level and structure of management board compensation offered by similar companies based in Germany and abroad. In addition, the duties, contribution and performance of each member of the Board of Directors are taken into account. The level of compensation is designed to be competitive within the market for highly qualified executives and to provide incentives for successful work that contributes in turn to the organizations sustained development as part of a high-performance culture. Wincor Nixdorf AG regularly takes part in remuneration reviews relating to both its own industry and other MDAX enterprises, with the express purpose of ensuring horizontal comparability of Board of Director compensation. Fur-
thermore, when determining compensation levels for its Board of Directors, the pay scale and remuneration system within the Wincor Nixdorf Group are taken into account (verticality). The remuneration of the Board of Directors is focused on performance and comprises the four components described below: 1. Fixed basic salary plus fringe benefits 2. Variable compensation (bonus) dependent on the attainment of specific targets (short-term performance-based component) 3. Share-based compensation (long-term incentive component) 4. Pension commitment Within this context, the fixed basic salary, the fringe benefits and the pension commitment represent non-performancebased components. The fixed basic salary is payable in monthly installments of equal amounts. The fringe benefits mainly comprise contributions made to accident and liability insurance policies as well as the provision of a company car. Additionally, all members of the Board of Directors of Wincor Nixdorf AG are entitled to retirement benefits, as described in detail in the section entitled Pension Commitments. Variable, performance-based compensation payable in the form of a bonus is dependent on the attainment of specific targets defined within the respective employment contracts. These targets are set on the basis of EBITDA (earnings before interest, taxes, depreciation, and amortization) and Group net income. Each target receives the same weighting and is settled separately. If the agreed budget per target is met in full (100%), the member of the Board of Directors receives 100% of his/her annual fixed basic salary as a bonus. If he/she falls short of the agreed budget by a maximum of 20%, the bonus is reduced on a straight-line basis. If the specified targets are met to an extent equivalent to 80%, the member of the Board of Directors receives 25% of the agreed bonus. If the level of target attainment remains below 80% with regard to one of the two targets, the entitlement to a bonus payment is no longer applicable; in this case, the Supervisory Board must decide, as in duty bound, on the granting of a bonus and the possible extent of such a bonus. If the level of target attainment reaches 120%, the associated bonus rises to 175% of the applicable fixed basic salary of the Board member in question. In accordance with contractual requirements, variable compensation may be equivalent to a maximum of 200% of the respective fixed annual basic salary. All targets are focused on increasing enterprise value. The targets to be applied as a basis for calculating the bonus amounts payable for fiscal 2010/2011 were defined at the Supervisory Board meeting of September 21, 2010. The bonus is payable in December following adoption of the Group financial statements by the Supervisory Board.
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Members of the Board of Directors receive share options as a form of compensation with a long-term incentive effect. For each member of the Board of Directors, the share-based compensation as a long-term incentive component should lie between 30% and 40% of target annual income. The remainder should be derived from the members fixed annual salary and pension commitment (35%50%) and from variable compensation (20%35%) (bonus). Full details are established by the Supervisory Board. The non-performance-based and short-term, performancebased components of compensation are itemized below and relate to all duties performed by the members of the Board of Directors within the Group:
Non-performance-based Fixed basic salary 2010/2011 2009/2010 Fringe benefits 2010/2011 2009/2010 2010/2011 2009/2010 2010/2011 2009/2010 Performance-based Total
Eckard Heidloff Stefan Auerbach Dr. Jrgen Wunram Total
550,000.00 400,000.00 400,000.00
550,000.00 400,000.00 400,000.00
35,530.63 26,956.75 19,921.18 82,408.56
33,832.41 27,221.38 20,728.05
746,062.50 542,250.00 542,250.00
456,170.00 1,331,593.13 1,040,002.41 327,760.00 327,760.00 969,206.75 962,171.18 754,981.38 748,488.05
1,350,000.00 1,350,000.00
81,781.84 1,830,562.50 1,111,690.00 3,262,971.06 2,543,471.84
The performance-related payments for the fiscal years shown in the table take into account differences between the accrued amounts at the corresponding reporting dates and the amounts actually paid out in the subsequent periods.
Share-based Compensation (Long - te rm I nc e ntive Component). Starting in fiscal 2010/2011 (2011 share
Group nancial statements, note 16, see page 121.
option program), the number of share options granted to members of the Board of Directors will no longer be based on individual, contractually fixed numbers; henceforth, the number will be calculated on the basis of the planned ratio of long-term incentive components to the members target annual income. In accordance with the requirements of Germanys VorstAG Act, from the 2010 share option program onwards the vesting period for share options is now four years. Please refer to note 16 in the Notes to the Group financial statements for full details about the range of exercise prices, the remaining term of the respective options, the average exercise price of the share options during the exercise period, as well as the conditions of option grant and exercise associated with the sharebased payment programs. In addition to the performance target stipulated for other beneficiaries under the program (exercise price per share equals
the initial value plus 12%), a further condition applies to the exercise of share options held by members of the Board of Directors and has an impact on the long-term incentive component. The number of share options of the annual tranche granted to members of the Board of Directors is calculated at the start in such a way that a member can only achieve the full amount from this component of the overall compensation package, i.e., 100% of the planned sum from the long-term incentive component, if the share appreciates in value (yield) by an average of 6% per year over the entire four-year term of the share option. Share performance is calculated in terms of movements in the share price and the dividend (dividend yield). Once the number of share options has been calculated in this way, it can no longer be changed. For the Chief Executive Officer, the planned sum from the long-term incentive component is 700k and for the remaining members of the Board of Directors 500k. If share performance is below an annual average of 6% over the entire four-year vesting period for the share option, this will produce a lower figure for this component of the members compensation package. If share performance is above an annual average of 6% over the entire four-year vesting period for the share option, this will produce a higher figure for
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this component of the members compensation package. The contracts of members of the Board of Directors contain appropriate provisions to ensure that the amount actually received by a member in respect of the long-term incentive component does not unduly exceed the planned compensation from this component of the overall package. A subsequent adjustment is possible if three times the amount of a Board members planned annual compensation is exceeded when viewed over a five-year period. On this basis, the sums payable to each member of the Board of Directors from long-term incentive components are as follows:
Black-Scholes-Merton options pricing model Number of share options Value per share option2 Total value of compensation component with long-term incentive effect2
Amount of target annual income attributable to long-term incentive component1

1) Target 2) In
700,000.00 500,000.00 500,000.00 1,700,000.00
81,666 58,333 58,333 198,332
9.73 9.73 9.73
794,610.18 567,580.09 567,580.09 1,929,770.36
value in . , on date granted.
The total value of the share options at the date of granting was determined by means of the Black-Scholes-Merton options pricing model. Thus, the reported value of share-based compensation is merely to be seen as an amount derived from mathematical calculations. Whether the share-based compensation components associated with the current 2010 and 2011 programs result in a payment, and if so, to what extent, will depend on the future performance of the Companys share price and the stock market price applicable during the exercise period. The table below details the share options held as at September 30, 2011, by each member of the Board of Directors under each share-based payment program:
in units 2011 2010 Total
134,000 share options (Eckard Heidloff 60,000, Stefan Auerbach 30,000, and Dr. Jrgen Wunram 44,000). The share options granted under the 2009 program were serviced using treasury shares. As at September 30, 2011, they were still held by the members of the Board of Directors in question. The personnel expenses recognized in connection with the share-based payment programs from 2008 to 2011 are distributed among the Board members as follows:
2010/2011 2009/2010
307,849.00 172,825.00 224,076.00 704,750.00
422,100.00 211,050.00 309,540.00 942,690.00
81,666 58,333 58,333 198,332
60,000 30,000 44,000 134,000
141,666 88,333 102,333 332,332
The share options are not exercisable as at September 30, 2011. In the year under review, the share options granted under the 2009 share-based payment program were exercised at an average price of 61.19. The Board of Directors exercised a total of
Pension Commitments. The retirement benefit system in place for the respective members of the Board of Directors is based on a one-time payout or installment payments. They are entitled to the pension payments when reaching the age of 60. However, should a member remain on the Board of Directors in an active capacity beyond this period, the receipt of retirement benefits will only be possible as from the end of his/her employment contract as a member of the Board of Directors.
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The pension benefits awarded to members of the Board of Directors at the end of the reporting period and the allocations made to retirement accruals are as follows:
Retirement capital Total Sept. 30, 2011 Sept. 30, 2010 Allocations in fiscal year 2010/2011 2009/2010
700,110.30 819,946.00 626,200.00 2,146,256.30
555,116.60 599,946.00 506,200.00 1,661,262.60
126,082.00 100,000.00 100,000.00 326,082.00
126,082.00 50,000.00 100,000.00 276,082.00
The table shows the one-time pay-off entitlements that members of the Board of Directors would receive when reaching the age of 60, on the basis of the entitlements accumulated up to the end of each fiscal year, as well as the entitlement acquired in each fiscal year that was allocated to pension accruals as service costs. In the event that the respective members continue to hold a position on the Board of Directors, the actual pensions and/or one-time pay-off benefits will be higher than those presented in the table, particularly as a result of future financing contributions. The allocations to retirement capital, as listed in the table, will occur in the same amount in subsequent years until the end of the respective contracts for the members of the Board of Directors and will bear interest of 3.5% per annum.
Miscellaneous. There were no loan arrangements with
In the event of permanent incapacity to perform his/her duties, a member of the Board of Directors will continue to receive his/ her fixed basic salary in monthly installments for a period of up to 18 months; additionally, bonus entitlements will be paid (to the extent that the targets are attained) for six months from onset of the illness or the incapacity. Members of the Board of Directors receive no compensation for positions held within Group entities. The contracts for the Board of Directors do not contain any provisions concerning the termination of the contract in the event of a change of control.
Remuneration of Former Members of the Board of Directors. In fiscal 2010/2011, the emoluments received
members of the Board of Directors in fiscal 2010/2011 or 2009/ 2010. Furthermore, no benefits of a similar nature were granted. If the service of a member of the Board of Directors is terminated for good cause either because (in accordance with Section 626 of the German Civil Code) the Company cancels that persons service contract before completion of the period of office or the member in question resigns or because that member is removed for good cause as defined by Section 84 (3) of the German Stock Corporation Act (Aktiengesetz AktG), under the terms of the service contracts for the Board of Directors he/she will continue to receive his/her previous fixed basic salary but no further variable compensation. In the event that a members period of office is terminated early without good cause, the service contracts of the members of the Board of Directors include a reference to the provisions of Section 4.2.3 (4) of the German Corporate Governance Code (GCGC).
by former members of the Board of Directors and their surviving dependents amounted to 115k in total (2009/2010: 114k). Provisions in the amount of 1,787k (2009/2010: 1,961k) have been recognized in connection with pension obligations towards former members of the Board of Directors and their surviving dependents.
Sy s te m o f Com pe ns a ti on for the Sup e r v is o r y Board. Supervisory Board compensation is determined on the
basis of the size of the enterprise, the duties, and responsibilities of Supervisory Board members and the economic situation of the Company. The provisions relating to Supervisory Board compensation are specified in Section 12 of the Articles of Association of Wincor Nixdorf AG, which was most recently amended on the basis of a resolution passed by the Annual General Meeting of Shareholders on January 29, 2007, and came into force upon entry in the Commercial Register on March 14, 2007. According to these provisions, the members of
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the Supervisory Board receive a fixed amount of 30,000 as annual compensation, payable after the end of the fiscal year. In the case of the Chairperson of the Supervisory Board, compensation is equivalent to three times the annual amount, and in the case of his/her deputy one and a half times the annual amount mentioned above. The Chairperson of the Audit Committee also receives one and a half times the annual amount of compensation. Members of the Supervisory Board whose appointment to the Board or to one of the above-mentioned functions is limited to part of the fiscal year shall receive proportionate compensation for each month commenced. In addition to annual compensation, the members of the Supervisory Board receive an attendance allowance of 3,000 per day for meetings of the Supervisory Board and of the committees to which they are appointed. If a meeting of the Supervisory Board attended by the member coincides with a meeting of one of the Supervisory Boards committees, the attendance allowance is paid for only one such meeting. The remuneration of individual members of the Supervisory Board of Wincor Nixdorf AG is shown in the following table:
Annual compensation 2010/2011 2009/2010 Attendance allowances 2010/2011 2009/2010 Total 2010/2011 2009/2010
Karl-Heinz Stiller (Chairman) Michael Schild* (Deputy Chairman) Prof. Dr. Achim Bachem Hero Brahms (Chairman of Audit Committee) Dr. Alexander Dibelius Manfred Feierabend* (up to January 24, 2011) Gabriele Feierabend-Zaljec* (since January 24, 2011) Walter Gunz Hans-Ulrich Holdenried (since January 24, 2011) Volker Kotnig* Thomas Meilwes* Dr. Bernard Motzko* (up to November 2, 2009) Martin Stamm* (since November 2, 2009) Franz Tlle* (up to January 24, 2011) Prof. Dr. Harald Wiedmann (up to January 24, 2011) Carmelo Zanghi* (since January 24, 2011) Total
* Employee representatives.
90,000.00 41,250.00 30,000.00 45,000.00 30,000.00 15,000.00 22,500.00 30,000.00 22,500.00 30,000.00 30,000.00 0.00 30,000.00 10,000.00 10,000.00 22,500.00
90,000.00 30,000.00 30,000.00 45,000.00 30,000.00 45,000.00 0.00 30,000.00 0.00 30,000.00 30,000.00 5,000.00 27,500.00 30,000.00 30,000.00 0.00
24,000.00 21,000.00 15,000.00 24,000.00 15,000.00 6,000.00 9,000.00 15,000.00 12,000.00 21,000.00 15,000.00 0.00 15,000.00 9,000.00 3,000.00 12,000.00
27,000.00 114,000.00 15,000.00 15,000.00 24,000.00 15,000.00 27,000.00 0.00 15,000.00 0.00 12,000.00 15,000.00 0.00 12,000.00 27,000.00 15,000.00 0.00 62,250.00 45,000.00 69,000.00 45,000.00 21,000.00 31,500.00 45,000.00 34,500.00 51,000.00 45,000.00 0.00 45,000,00 19,000.00 13,000.00 34,500.00
117,000.00 45,000.00 45,000.00 69,000.00 45,000.00 72,000.00 0.00 45,000.00 0.00 42,000.00 45,000.00 5,000.00 39,500.00 57,000.00 45,000.00 0.00 671,500.00
458,750.00 452,500.00 216,000.00 219,000.00 674,750.00
22
M anagement
St ock
Cor por a t e G over na nc e Supervisory Board Report
M a ga z i ne
In fiscal 2010/2011, against a background of overall market recovery at global level, Wincor Nixdorf AG achieved an increase in net sales and maintained an operating profit in line with the previous year. However, it became clear over the reporting year that the recovery was not yet sufficiently rooted in our key markets to allow us to generate the improvement in net sales and profit that we had originally thought possible. Together with the introduction of CINEO, our newly developed and innovative family of systems, this presented a major challenge to the Company. The work of the Supervisory Board in the year under review involved closely monitoring the Companys response to this challenge and the development of business.
T h e Wo rk o f t h e Su p e r v is o r y B oard. In the fiscal year under review, the Supervisory Board of Wincor Nixdorf
AG discharged its duties in accordance with statutory requirements, the German Corporate Governance Code, and the Companys Articles of Association. First and foremost, this task involved advising and monitoring the Board of Directors on a regular basis in matters concerning the strategic direction and management of the Group. This collaboration was characterized by the fact that all decisions of fundamental importance to Wincor Nixdorf AG and its Group companies were agreed directly with the Supervisory Board. Receiving comprehensive information on a regular and timely basis in the form of verbal and written reports, the Supervisory Board was informed by the Board of Directors on all material issues relating to the corporate planning, strategic direction and development, business performance, and state of the Group, including risks and risk management. All business matters of importance to the Company were discussed by the Supervisory Board on the basis of reports furnished by the Board of Directors.
Gr oup Account s
Audi t or s Repor t
23
In fiscal 2010/2011, five scheduled Supervisory Board meetings were held, at which the Board of Directors informed the Supervisory Board about the performance of the Company. In addition to these five scheduled meetings, the Supervisory Board convened on November 8, 2010, for an extraordinary Supervisory Board meeting. The main item on the agenda at this meeting was a discussion of the key figures in the financial statements and the outlook for fiscal 2010/2011 before the annual press conference on November 9, 2010. The five scheduled Supervisory Board meetings were held on November 24, 2010, and on January 25, May 3, July 27, and September 27, 2011. The average attendance at these meetings of the Supervisory Board was 94.4%, and no committee members took part in less than half of the meetings. All meetings were attended by representatives of the Board of Directors. At the aforementioned meetings, all necessary resolutions were passed on the basis of documentation prepared in advance. Between each meeting convened by the Supervisory Board, the Board of Directors informed the Supervisory Board promptly and comprehensively about important events of particular significance in assessing the position and performance as well as the overall management of the Company. Furthermore, the Board of Directors remained in continuous contact with the Supervisory Board and informed it about the current business position as well as significant occurrences, developments, and decisions. At its meeting on September 27, 2011, the Supervisory Board conducted a self-assessment in order to examine the efficiency of its activities.
Key Areas o f Del ib e ra t io n by t h e S u p e r v is or y B oard. At its individual meetings, the Supervisory Board regularly examined the business, net sales, and earnings performance of the Group and its segments, as well as cash flows, implementation of the strategic focus, and HR development. It also discussed measures to exploit potential growth while improving efficiency and reducing costs, including the continued successful implementation of our strategic ProFuture program, which was launched in 2009, our cost-reduction program ProImprove, and other initiatives for change, with a particular focus on generating stronger regional growth in the emerging market regions of Asia/Pacific/Africa and Latin America. In addition, the Supervisory Board discussed proposals to approve the issue of share options to members of the Board of Directors and employees (2011 tranche) and the repurchase of Company shares. At its meeting on July 27, 2011, the Supervisory Board adopted a proposal to extend the term of office of President & CEO and member of the Board of Directors Eckard Heidloff, which was due to expire on January 28, 2012, by a further five years, up to and including January 28, 2017. At the same meeting, the Supervisory Board also agreed to extend the term of office of member of the Board of Directors Dr. Jrgen Wunram, which was due to expire on February 28, 2012, also by a further five years, up to and including February 28, 2017. At its meeting on September 27, 2011, the Supervisory Board gave its approval to the fiscal 2011/2012 budget proposed by the Board of Directors and to the medium-term strategic business development plan. In addition, the Supervisory Board drew up objectives in relation to its own composition with regard to diversity and examined the current state of implementation. Details can be found in the Corporate Governance Report in this Annual Report. Committee Work. The Supervisory Board is supported in its duties by four committees established by this body. These
Corporate Governance Report, see page 12 et seq.
committees are responsible for preparing the ground for Supervisory Board resolutions and examining issues subsequently to be addressed in plenary sessions. Furthermore, the Supervisory Board has delegated decision-making authority to the committees within specific areas. With the exception of the Audit Committee, which is chaired by Supervisory Board member Hero Brahms, the committees are presided over by the Chairman of the Supervisory Board.
24
M anagement
St ock
Cor por a t e G over na nc e Supervisory Board Report
M a ga z i ne
The Audit Committee convened on three occasions during the fiscal year under review. The main focus of its work was on examining the annual accounts and Group financial statements of Wincor Nixdorf AG and the budget for fiscal 2011/2012. Other issues addressed were the Companys risk report and risk management policy, reporting by Internal Audit, and measures aimed at further extending the corporate compliance program. The Personnel Committee met on July 27, 2011, to discuss the extension of the terms of office of Eckard Heidloff and Dr. Jrgen Wunram on the Board of Directors, the corresponding adjustments to their employment contracts, and the compensation payable to the Board of Directors. During the year under review, the Nomination Committee convened on July 27, 2011, to prepare a proposal of the Supervisory Board to the Annual General Meeting on January 23, 2012, concerning the election of two shareholder representatives to the Supervisory Board. There was again no need to convene the Mediation Committee during the fiscal year just ended.
Corporate Governance and Declaration of Conformity. With regard to Corporate Governance, this Annual
Report contains a separate section with a report by the Board of Directors, issued also on behalf of the Supervisory Board, pursuant to Section 3.10 of the German Corporate Governance Code. On November 23, 2011, the Board of Directors and the Supervisory Board issued an updated Declaration of Conformity pursuant to Section 161 of the German Stock Corporation Act (AktG) and made the declaration, along with details of non-conformity, permanently available to shareholders on the Company website.
Ap p rova l o f t h e A n n u a l Ac c o u n t s and Adopt ion of t he Group Financial S t atem ents. On Jan-
uary 24, 2011, the Annual General Meeting appointed the accountancy firm KPMG AG (Bielefeld), as auditor of the accounts. The Group financial statements for the fiscal year 2010/2011, prepared in accordance with Section 315 a of the German Commercial Code (Handelsgesetzbuch HGB) and IFRS, including an additional Group management report, have been audited by KPMG and given an unqualified audit opinion. This also applies to the separate annual accounts and management report of Wincor Nixdorf AG for the fiscal year 2010/2011, which were prepared on the basis of German accounting regulations. The documentation pertaining to the financial statements, the Board of Directors proposal for the appropriation of profit, and the auditors reports were submitted to the Audit Committee and the Supervisory Board in good time prior to their meetings. The information was examined in detail by the Audit Committee and subsequently by the full Supervisory Board, and discussed in the presence of the auditor, who was on hand to take questions and provide further information. Following its own examination of the Group financial statements and the Group management report, as well as the separate annual accounts and management report of Wincor Nixdorf AG, the Supervisory Board took the view that it did not wish to make any objections. Consequently, at its meeting on November 23, 2011, in line with the recommendation of its Audit Committee, the Supervisory Board concurred with the result of the audit and approved the financial statements and management reports drawn up by the Board of Directors. The annual accounts were thus formally adopted. The Supervisory Board also discussed the proposal for the appropriation of profit and the dividend policy with the Board of Directors. With due regard for the Companys solid financial situation and the expectations of both shareholders and the capital markets, the Supervisory Board gave its unqualified approval to the proposal of the Board of Directors. The Supervisory Board determined its proposed resolutions for the agenda of the Companys Annual General Meeting to be held on January 23, 2012, and approved this Supervisory Board report.
Gr oup Account s
Audi t or s Repor t
25
Composition of the Supervisory Board. In accordance with Section 7 of the Companys Articles of Association, the Supervisory Board consists of six shareholder representatives and six employee representatives. No conflicts of interest occurred within the Supervisory Board during the period under review. The terms of office of the six employee representatives as well as those of Dr. Alexander Dibelius and Hans-Ulrich Holdenried are due to expire at the end of the Annual General Meeting responsible for adopting a motion on the approval of their actions for fiscal 2014/2015. The terms of office of Walter Gunz and Prof. Dr. Achim Bachem continue until the end of the Annual General Meeting responsible for approving the actions of the members of the Supervisory Board for fiscal 2012/2013. The term of office of Hero Brahms and my own term of office continue until the end of the Annual General Meeting responsible for approving our actions for fiscal 2010/2011. The Supervisory Board wishes to thank the Board of Directors, all members of staff, and the employee representatives for their constructive and successful work in fiscal 2010/2011. Their tremendous commitment was particularly crucial over the last year and helped Wincor Nixdorf AG to overcome the challenges it faced.
Paderborn, November 23, 2011
Karl-Heinz Stiller Chairman of the Supervisory Board
26
M anagement
St ock
M a ga z i ne
TO BE SURPRISED, TO WONDER,
IS TO BEGIN
TO UNDERSTAND.
JOS ORTEGA Y GASSET
SPANISH PHILOSOPHER, SOCIOLOGIST AND ESSAYIST, 1883 1955
RE E NGINE E RING P RO C ES S ES
REENGINEERING PROCESSES.
2010 2011
THE MAGAZINE for the Annual Report of Wincor Nixdorf AG.
30
SUCCESS THROUGH SUSTAINABILITY.
36
NETWORKED SECURITY.
46
MAXIMUM QUALITY AND AVAILABILITY.
EXPERIENCE MEETS VISION.
CONTENT
REENGINEERING PROCESSES.
We review our products, solutions, and services day in, day out, in order to make our customers processes even better. In this magazine, we describe what impact continuous innovation has in practice. We provide answers to questions that concern us and our customers: How can cash processes be made even more ef ficient? What can we do to fulfill the needs of our customers consumers even better? How can we get as close as possible to one hundred percent availability and security? What does sustainability mean for us, how is it put into practice, and what proof of it do we provide? Answering all those questions is a perpetual process for us.
RE E NGINE E RING P ROCE S S ES
29
30
CUT CASH COSTS, BUT WHERE?
32
CONSULTING PROJECTS OFFER CUSTOMERS BIG SAVINGS.
34
SPARE PARTS GUARANTEED.
35
NETWORKED SECURITY FOR BANKS.
36
FIT FOR THE FUTURE.
38
MOBILE SHOPPING COMES TO PORTUGAL.
39
WORRY-FREE.
40
A NEW ERA AT THE CHECKOUT.
42
INVESTMENT IN THE FUTURE.
44
46
MANAGED SERVICES: ONLY THE BEGINNING.
48
A CONVINCING GLOBAL IT PARTNER.
49
30

WINCOR NIXDORF INVESTS IN CONSTANTLY IMPROVING THE ECO BALANCE. EXAMPLARY: THE NEW ATM GENERATION.
Only companies that pay aboveaverage attention to protecting resources, and offer products that enable their customers to do the same, will survive the coming decades, says Bjrn Stigson, President of the World Business Council for Sustainable Development (WBCSD), to which around thirty large international enterprises belong. At its core, the message is that sustainable management and economic success are two sides of the same coin. Whats more, sustainability and corporate responsibility for society and the environment are increasingly becoming determining factors for whether a company is t as to the future.
C ON S ERVI NG R ESO UR C ES A S A HOL I S TIC PR INC IP LE. Wincor Nixdorf is not responding to changed requirements, but is instead actively involved in driving development. Years ago, Wincor Nixdorf gradually began to switch to energy supply and production processes that save resources and the environment, and has been continually refining them ever since. Wincor Nixdorf regards the conservation of resources as a holistic principle: Analyses of the total cost of ownership (TCO) determine all the costs of a product across its life cycle, from planning and development, production and logistics, through to operation at the customer site, including maintenance, and service. The point of this exercise is to focus on environmentally friendly and energy-efficient components right from the start, and to ensure from the outset that customers can also reduce energy consumption and operating costs for the customer through specially designed products. CARBON F O OTPR INT ANALYS I S FO R C INEO. At Wincor Nixdorf, this message has been heard and taken to heart: The company has been actively promoting sustainability for a long time, with efforts that are motivated not just by economics, but also by a strong sense of responsibility. Wincor Nixdorf is committed to a healthy balance between economic, ecological, and social behavior, and is already practicing what it preaches. A holistic approach ensures that all three pillars receive equal attention. Wincor Nixdorf meets its social responsibility by attending to the welfare of its employees. In addition, it has pledged itself to abide by universal rights and laws such as those protecting human rights. Orientation for employees is provided not just by the companys code of conduct, but also by the Wincor Nixdorf Compliance Management System (CMS), which describes both the companys goals and the development of an appropriate organization. Wincor Nixdorf has likewise long promoted harmony between economy and ecology.
! !
RETURNS/ RECYCLING PROCUREMENT/PRODUCTION DELIVERY/ DISPATCH MAINTENANCE/SERVICES CUSTOMER USAGE
D e ve l opm e nt of powe r c o n s u m p ti o n of AT M s .
Start of series production 2000 11,500* The CINEO consumes approx. 30% less energy than its predecessor model, the ProCash 2000. 2006 11,300* 2011 11,000*
*kWh p.a. Series ProCash 2000 ProCash 2000xe CINEO C2060
Looking back, the ProCash 2000xe series had already achieved a best-in-class performance with regard to energy consumption. Indeed, it was considered a pioneer in its use of energysaving components such as LCD monitors.
of a product across its entire life cycle. In the meantime, carbon footprint measurement is regarded as a reliable method of determining the climate impact of products, services, and other events in human life. Climate impact can only be effectively reduced on the basis of the information and insights gained from such measurements. And this reduction is necessary in order to achieve the climate goals we have set ourselves. Wincor Nixdorf continues to work rigorously on reducing energy consumption. For example, we are continually optimizing our hardware platform technology to improve its TCO and meet the goals of green IT.
Another significant step toward sustainability is the carbon footprint analysis we conducted last year for the new CINEO system family for bank branches and retail stores. This carbon footprint measures the total amount of carbon dioxide emissions resulting directly or indirectly from the manufacture and use
SPARING USE OF RESOURCES END TO END.

!
RESEARCH AND DEVELOPMENT
RE E NGINE E RING P ROCE SSE S SUSTA INA BI L I TY
31
One example is the cash dispenser from the new CINEO product family, which uses 31% less energy than the predecessor model (see illustration). And in cooperation with PE International, Wincor Nixdorf commissioned a carbon footprint analysis of its cash recycling system CINEO C4060 to demonstrate and quantify its progress with regard to sustainability. C O 2 RE D U CTIO N IN T H E CA SH CYCLE . The automated cash handling concept on which the new CINEO system generation is based also has a substantial influence on the CO2 balance. Our cash recycling technology shortens and optimizes the entire cash cycle in bank branches and retail stores. Banknotes deposited at a bank branch counter into the intelligent storage unit in an automated teller safe can be dispensed again at an automated teller machine. Similarly, a closed cash cycle between the checkout zone and cash office can also be created in retailing. For example, a note storage unit that holds cash takings from a retail business could be directly inserted in a nearby ATM to replenish its cash. The takings then need to be removed to a CiT operators cash center much less often. The need for cash-in-transit services can thus be reduced by 30% to 50%, which in turn significantly improves the CO2 balance. In addition, on average, a cash recycling system emits 34% less CO2 (in kilograms) over a service life of eight years than the combination of a separate cash dispenser and separate deposit unit. SU S TA I NAB ILIT Y AS A BU S I N E SS MO D E L. This example alone shows what is possible and feasible through rigorous research and development. And this is important since it will be the market, customers and end users who, in the foreseeable future, will determine which products are purchased over the long term and are beneficial to society. Businesses are already being encouraged to compile their sustainability reports according to the guidelines of the Global Reporting Initiative (GRI), which was founded in 1997 in partnership with the environmental program of the United Nations. In the meantime, these guidelines are regarded as the most important benchmark for sustainability reporting. Over the long term, all these things mean that sustainability must be an important element of the business models of the future.
Looking into the future.

The WBCSD study Vision 2050 makes it very clear what the world could look like in forty years: Its population is growing, above all in urban areas, toward the nine-billion mark. However, since people are also growing older, agricultural land must be exploited even more intensively, and production increased. As a consequence, CO2 emissions rise by 52% and the temperature of the earth climbs by 1.7 to 2.4 degrees Celsius with all of the negative consequences of this change, such as periods of heat and drought as well as storms and flooding. Water shortages and the depletion of raw materials also threaten the quality of human life. Or at least that's how things will look if nothing changes.
32
CUT CASH COSTS, BUT WHERE?

WINCOR NIXDORF OPTIMIZES AND AUTOMATES CASH PROCESSES AT BANKS AND RETAILERS.
RE E NGINE E RING P ROCE SSE S CC M S
33
C A S H I S K I NG BU T C O S T LY. With consumers, cash is still king. But handling cash costs a lot of money up to 300 billion dollars a year, according to Wincor Nixdorf analysis. And the expense isnt the only problem: Cash handling poses security risks and is subject to new legal requirements. The cumulative effect of all these factors is the growing popularity of innovative technologies to automate cash processing. A NA LY SI S , S T R AT E G I E S , S OLU T IO N S . But which solution concept is the right one and promises the greatest possible efficiency in practice? And where in the complex cash supply chain is the right place to start? Wincor Nixdorf's Cash Cycle Management Consulting portfolio delivers answers to these and other questions on cash management. Its consulting approach culminates in extensive documentation of existing cash processes, the identification of the largest cost drivers, and concrete solution proposals for optimizing processes. All these elements help banks and retail companies protect their investment decisions. For Wincor Nixdorf, cash cycle consulting is a holistic process. The first step, according to Thomas Certa, who heads up Solution Marketing Banking at Wincor Nixdorf, involves an analysis of the customers existing cash processes and volume streams, followed by benchmarking. The information gathered during this analysis forms the basis for developing strategies and various scenarios for optimized cash processes, which in turn result in a concrete calculation of the customers return on investment (ROI). T H E C A S H C YC L E O P T I M I Z E R S O F T WA R E T O OL . Workflows in both retail banking and retailing are dependent on a number of factors, including branch or store structure, size, and existing technologies. Customer structure and country-specific requirements also play a role. To take due account of all these parameters, Wincor Nixdorf has developed the software Cash Cycle Optimizer in close cooperation with leading consulting companies. This software tool quantifies the customers current processes in order to identify optimization potential. These analyses deliver information that Wincor Nixdorfs consultants can use, in conjunction with their own know-how of branch-specific processes, industry standards, and existing best practices, to develop new solution approaches and identify specific cost savings potential. They can also serve as the basis
Leyla Feghhi, Director Marketing Retail at Wincor Nixdorf. More about cash cycle management.
E2E NOTE STORAGE UNIT SELF-SERVICE BACK OFFICE CASH OFFICE
CCMS CONSULTING BY WINCOR NIXDORF.
ANALYSIS
BENCHMARKING
SCENARIOS
CASH CENTER
BANKING
FRONT OFFICE
INTERBUSINESS
RETAIL
FRONT OFFICE
Wincor Nixdorf optimizes cash cycles taking account of processes, costs, the parties involved, interfaces, and technologies.
entire cash cycle with involved parties such as banks, retail companies and CiT operators are the result, explains Leyla Feghhi, Director of Marketing Retail at Wincor Nixdorf. P I L O T I N S TA L L AT IO N S A S A B A S I S F O R M A K I NG D E C I S I O N S . Implementing the developed concepts in practice might look as follows: If a bank or a retail company decides to implement one or more of the proposed solution scenarios, Wincor Nixdorf also offers the integration into the banks individual IT environment, including project management.
for designing new solution scenarios. A consulting-oriented analysis of cash processes does not have to be confined to branch level: If needed, entire branch networks and the banks replenishment and removal processes (cash-intransit companies) can also be considered when developing optimization strategies. With our approach to consulting, we develop tailor-made
Thomas Certa, Director Solution Marketing Banking at Wincor Nixdorf.
concepts for the diverse requirements of retail companies and banks worldwide. Separate solution scenarios for individual branches, but also for the
34
CONSULTING PROJECTS OFFER CUSTOMERS BIG SAVINGS.

BANK OF MONTREAL KNOWS HOW TO SAVE WAY MORE THAN 20 PERCENT OF ITS CASH HANDLING COSTS.
A I
s part of its Cash Cycle Management Consulting offering, Wincor Nixdorf has identified together with the Bank of Montreal the potential for optimization in cash processes.
average an hour. Because the use of recycling ATS systems reduces the time needed for this task to practically nothing, customer service can be improved by extending branch opening hours. Another insight: the use of Wincor Nixdorfs CINEO technology, with its standardized, intelligent cassettes, means that cash from the banks recycling ATS systems, which handle mostly deposits, can be used to replenish cash for dispensing transactions at its ATMs. Ultimately, Wincor Nixdorfs promise to reduce cash handling costs by at least 20% through the introduction of CINEO and Cash Cycle Management Solutions was greatly exceeded at BMO Bank of Montreal. With this study, Wincor Nixdorf presented a very convincing business case for implementing CCMS technology. The strategy the team developed will form an integral part of our program for the further development of our branch network, and is an important element in our efforts to define a great customer experience, says Andrew Irvine, Senior Vice President Integrated Distribution at BMO.
The result was that an optimization of the banks processes would lead to significant cost savings. n more than 900 branches across Canada, Bank of Montreal offers a broad portfolio of services in retail banking, wealth management, and investment banking. The bank has a large-scale
ATM network of some 2,000 systems and uses 500 automated teller safes (ATS) in its branches. A consulting project was started in April
2011 with two goals an assessment of the savings potential possible with the implementation of Wincor Nixdorfs Cash Cycle Management technology, and the identification of quick wins achievable through process optimization. Bank senior managements ongoing interest and strong support for the project demonstrated how important it was for BMO.
incor Nixdorfs consultants scrutinized the entire branch network and divided into different branch types to enable a differentiated view. The project identified
significant potential for cost reductions in areas of the branches where

Andrew Irvine, Senior Vice President, Bank of Montreal.
employees handle cash. At the same time, possibilities for improving security and customer service were also revealed. For example, balancing the cash drawer at a branch teller station traditionally takes on
RE E NGINE E RING P ROCE SSE S INCRE ASE D E FFICIEN CY
35
SPARE PARTS GUARANTEED.

SERVICE LOGISTICS FROM WINCOR NIXDORF ENSURE GLOBAL AVAILABILITY AT ALL TIMES.
Wolfgang Knkler, Vice President Services at Wincor Nixdorf. Bernd Mller, Finance Director Services at Wincor Nixdorf.
Planning for well-functioning spare parts provision as early as the purchase of new product means youre on the safe side in the event of a problem. Thats the philosophy at Wincor Nixdorf, where finely tuned spare parts logistics ensure that system availability is never left to chance. NO M AT T E R W H E R E NO M AT T E R W H E N. Service logistics are one of the most important pillars of Wincor Nixdorfs Global Delivery, says Wolfgang Knkler, Vice President Services at Wincor Nixdorf. For this reason, the Company has rigorously pursued the development and expansion of Wincor Nixdorf Logistics GmbH as a service provider. At the same time, the Global Logistics Center (GLC) was established to manage the entire standard logistics process. The highest priority is the rapid, reliable, cost-effective delivery of spare parts to wherever Wincor Nixdorfs customers are located, anywhere in the world. According to Bernd Mller, Finance Director Services at Wincor Nixdorf, Its our goal to ensure the highest across-the-board availability for our customers, and to support our service teams in complying reliably with the servicelevel agreements we make.
R epai r C enter
over 10.000 deliveries per day
Thats why the wheels of logistics at Wincor Nixdorf spin around the clock, seven days a week, moving more than 10,000 deliveries every day in more than 100 countries, and guaranteeing delivery times of
Comprehensive inventory management is another aspect of reliability, as Wolfgang Knkler notes. After all, customers should be able to count on getting their spare parts even ten years after we discontinue production of the system. WO R R Y-F R E E . Parts numbering several tens of thousands are ready and waiting to be shipped and exchanged earlier rather than later. We practice preventive maintenance,
WORLDWIDE SPARE-PARTS LOGISTICS.

MAXIMUM AVAILABILITY FOR ALL CUSTOMER SYSTEMS.
GLOBAL LOGISTICS CENTER
EUROPE
3 global logistics and distribution centers
which means we also take a look at things that could cause downtime in the near future, says Bernd Mller. And repair management can also include the repair and refurbishment of defective
in over 90 countries
USA
ASIA
delivery in 12 to 72 hours national depots
S er vi ce tech n i ci a n s
Service partners
LOGISTICS SOFTWARE
spare parts. More than 150 bestin-class service partners and technicians in authorized repair centers around the world work in
Spare parts reach the customer quickly and reliably anywhere in the world.
line with recognized industry

CUSTOMERS
standards. Ultimately, spare parts logistics from Wincor Nixdorf amount
between 12 and 72 hours. Global warehouses and distribution centers in Europe, North America, and Asia form the basis for a finely tuned logistics infrastructure that meshes global and regional distribution points with national depots and service technicians. At the core of these carefully coordinated processes is highly efficient, SAP-based software. It uses standard processes to automate and control the rapid shipping of parts, components, and systems in real time and thus keep customer downtime to an absolute minimum.
to the promise of trouble-free operation with a guarantee of success. After all, the Company does more than simply assume responsibility for the entire logistics chain. It also ensures higher quality and efficiency in spare parts provision for its customers. This increases system availability and helps customers protect their investments over the long term. All in all, a genuine cost advantage.
36
NETWORKED SECURITY FOR BANKS.

RISK ANALYSIS, OPTIMIZATION, AND CONTROL WITH PROTECT FROM WINCOR NIXDORF.
Intelligent networking of components and systems in banks can be used to set up more extensive and ef fective protection against both current and future threats.
danger. Thats component networking in the best sense of the term. In the world of security technology, too, the status is permanently monitored, critical events and situations are reported in a variety of ways and from areas that function independently of each other, and this information is communicated to different peoThe damage caused by attacks on automated teller machines in Germany alone cost 20 million euros more in 2010 than in 2009. Nevertheless, from the banks viewpoint this is merely the tip of the iceberg, because attacks on bank security are now also being directed at bank IT and networks. The only answer for banks is to continue to upgrade their security solutions, using new concepts such as the many solutions in Wincor Nixdorfs ProTect security portfolio to thwart new threats. Yet is a combination of numerous individual solutions really the answer to the problem, or rather an expanded approach to it? Todays attacks on banks cover a broad spectrum, targeting buildings as well as devices, software, and networks. Banks therefore need to protect their customers and employees from damage and minimize financial risks. Hence, every new criminal activity is met with a new hardware and software solution. This response, however, has not appeared to result in greater security. T H E AU T O M O B I L E A S A M O D E L . But if new responses to new criminal activity arent the answer, then what is? Lets take a look for a moment at a completely different environment: the automobile. A whole series of standard components, such as safety belts and airbags, are responsible for safety here. And people who want even more safety can purchase additional assistance systems. When they do, existing and additional sensors work together to collect a whole host of data and forward it to the control system. From the cars speed and its distance to the vehicle in front of it, critical situations can be identified before they occur and the driver can be warned accordingly. And in the foreseeable future, cars will even communicate with each other and pass on information about impending V I TA L : T O P- C L A S S I N DUST R Y K NOW-HOW. However, realizing this kind of network requires two things: First, the insight that security and trust themselves represent added value, and second, a view of the entire existing infrastructure, which is only possible through extensive knowledge of bankspecific workflows and processes. In other words the installation of different components and the best possible networking also require a holistic consulting approach from providers such as Wincor
Marco Lange, Director of Business Security at Wincor Nixdorf.
Nixdorf, along with the explicit desire for greater security on the part of customers, in this case banks. And that is definitely happening. Recently, a bank made the installation of a video system conditional upon its delivering a correlation; in other words, it had to be possible to network the video system with other systems, in this case the sensors from the banks ATMs and its access area. Ultimately, its about using existing systems, complementing them in a sensible manner, and integrating them with each other in order to combine all the information that is available throughout the infrastructure, explains Marco Lange, Director Business Security at Wincor Nixdorf. With ProTect, we can deliver banks a significant increase in security, and do this faster and often proactively. We call this dynamic fraud management, and it offers a protective shield against a variety of threats, says Lange. The central focus is always on the three big Rs: risk analysis (through controlling), risk minimization (through the use of components and systems), and risk control (through the creation of correlations between separate systems). This is Wincor Nixdorf's protective shield. It offers banks maximum investment protection with virtually no impairment at all to their operations, thus enabling them to preserve their assets in the long term. After all, all four values human life and health, bank reputation, money and information, and investments have an influence on business success, or failure, if they arent adequately protected.
ple. What is generally lacking, however, is the combined use of different systems and reports for a preventive and targeted effect. However, since security is an important element of overall business success, security solutions must be able to communicate with other business processes as the example of automobile safety shows. Fortunately, this is indeed possible: Just like vehicle owners, banks can extend their existing standard security solutions through add-ons. Unfortunately, the resulting increase in security is fragmented, since each add-on counters only one particular threat. For example, an additional video system may monitor the entrance to the self-service lobby, but it takes no action based on what it records. Things would look very different, however, if the sensors in the ATM were networked with the video system: Then, a logical connection could be established between the opening of the door to the banks self-service area and a subsequent ATM transaction. If, for example, there has been no transaction within two minutes of the door being opened, security personnel will be informed, and can view the live video footage or take a look on site, if necessary. Possible damage from skimming, trapping, or blowing up an ATM can be avoided.
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TPSecure: preventive protection for IT systems.

A rapid reaction is the most important response to an attack on the IT of a retail business. But it would be better if you didnt need to react at all. TPSecure software from Wincor Nixdorf ensures preventive, holistic protection of entire store systems even in the face of unknown threats. A conventional firewall operates on the blacklist principle: it uses a list of network addresses to prevent data from unauthorized sources from invading store computers. However, this assumes that retailers always know about security vulnerabilities in advance. TPSecure goes a decisive step further. Using a practice known as the white-list principle, it orients itself to a defined set of rules and behavioral patterns to detect anomalies in program flows. With this approach, the customer determines in advance precisely who or what should have access to which areas. In addition, information on all attempts to breach the rules are logged, so that the customer can readily trace the source of any attack. TPSecure bundles a number of security technologies in one product. The result is a higher level of security than is possible with individual technologies such as virus scanners or firewalls. The investment pays off for retail companies in the form of a reduction in total operating costs and a rapid return on investment (ROI). And TPSecure also supports retailers in their efforts to obtain security certificates and fulfill compliance requirements.
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FIT FOR THE FUTURE.

NEW PLATFORMS FOR SCOTIABANK IN CANADA WITH 1,70 0 FUTURE-PROOF ATMs.
In September 2011, following a pilot phase, Scotiabank began to upgrade its ATM network to the latest standard. On board the systems being delivered by Wincor Nixdorf are state-of-the-art security solutions.
Scotiabank, headquartered in Toronto, Ontario, is one of North Americas premier financial institutions and Canadas most international bank. With more than 70,000 employees, Scotiabank Group and its affiliates serve some 18.6 million customers in more than 50 countries around the world a leadership position attained in no small part by understanding what todays bank customers expect: modern equipment that enables the bank to offer innovative solutions and implement futureoriented services. W I T H BU I LT-I N F U T U R E . Thats why September 2011 marked the beginning of Scotiabanks Canadian roll out of new systems
for its self-service device network. Approximately 1,700 ATMs will be installed successively over the next 18 months to replace older systems. For Scotiabank, this is much more than just a run-ofthe-mill upgrade: among the features of the new state-of-the-art Wincor Nixdorf systems are 15" touchscreens that support future touch applications to enhance and extend the customer experience. The latest in processor technology and rapid interfaces ensure that Internet interaction and voice-supported communication are simple and easy. The new ATMs are also equipped with the latest security features from Wincor Nixdorf such as the Anti-Skimming II Module and privacy shields for the PIN pad that together ensure a secure and protected environment for self-service banking. The latest Anti-Skimming II Module offers particularly effective protection. It not only detects skimming devices, it also triggers a silent alarm when any suspicious device is attached to the ATM, and can initiate other actions such as video monitoring. Whats more, it emits an interference field that prevents sensitive customer card data from being read by skimming devices. B E S T-I N- C L A S S . Scotiabanks powerful upgrade was a conscious, strategic decision, not a matter of chance. Were taking advantage of the opportunity to position ourselves as an industry leader and deliver best-inclass service in self-service banking, says Stephen Gaskin, Scotiabanks Vice-President of Self Service Customer Experience, in describing the goal of this ambitious project. And indeed, the upgrade has numerous benefits for the bank. The new platform, as Wincor Nixdorfs ATMs are collectively called, offers great flexibility: further innovative solutions acquired by the bank such as upgrades to envelope-free check deposit or cash cycle management functions will be easy to add. In other words: Scotiabank is optimally prepared for the future of self-service banking, just the way its customers expect.
Stephen Gaskin, Vice President, Scotiabank.
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Innovative retailers like Portugals Sonae are constantly seeking ways to enhance the customer shopping experience and, at the same time, streamline their business processes for greater ef ficiency. The process of scanning the goods with a mobile device at the shelf and selfpayment solutions from Wincor Nixdorf allow Portugals largest retailer, with more than 800 stores and 40,000 employees, to achieve both.
MOBILE SHOPPING COMES TO PORTUGAL.

MOBILE SCANNERS TO IMPROVE THE CHECKOUT PROCESS.
Shoppers take control of the whole shopping process by scanning and afterwards paying for products themselves. They can enjoy a greater shopping experience overall, save time by not having to remove items from their shopping carts at the checkout, keep track of costs as they shop, and take control of the whole shopping process. S AT I SF I E D C U S T O M E R S . Sonae calls the new service Compre & Siga (Buy & Go). In stores where it has introduced the service, the Portuguese retail giant has been able to reduce checkout lanes by about 20 percent and provide greater service for the customers by relieving sales personnel of routine tasks. The retailer has also been able to accelerate the checkout process during crucial peak shopping hours. E A S I E R A N D FA S T E R . With TPiSHOP, we are able to offer our customers a new shopping experience, says Joao Gnther Amaral, Director Business Development and Innovation at Sonae. We experience a very good acceptance of this new service concept. At its hypermarkets, which operate under the CONTINENTE brand, Sonae provides up to 100 mobile devices in each store. The devices run Wincor Nixdorfs TPiSHOP mobile shopping solution out of the comprehensive retail software solution, the TP Application Suite. Moreover, the stores are equipped with Wincor Nixdorfs PayTower self-payment terminals for cash or non-cash payment. The companys advanced TPiSCAN software is implemented in the terminals for easy self-payments. The entire mobile shopping solution has been easily integrated into existing store operations without any service disruption.
Long-term partnership.
The mobile shopping solution further deepens Wincor Nixdorfs partnership with Sonae, a 5.8 billion sales retailer that has been operating a growing fleet of more than 2,500 Wincor Nixdorf BEETLE point-of-sale terminals (in the total of 5,000) for more than six years.
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WORRY-FREE.
WIN@BRANCH: PROCESS ANALYSIS, TECHNICAL AND ARCHITECTURAL REENGINEERING, PLANNING, AND MONITORING OF ALL TRADES PLUS SELF-SERVICE SYSTEMS ALL FROM A SINGLE SOURCE.
With its new showcase branch, Sparkasse Bielefeld is setting new standards in interior design, atmosphere, and customer orientation far beyond regional borders. As general coordinating contractor for the project, Wincor Nixdorf is responsible for the complete renovation of the bank branch and can now point to an outstanding reference in a promising new business field.
The renovation of the branch has an ambitious schedule: Between January and December of 2011, the building on Bielefelds Stresemann-Strasse is being gutted and completely rebuilt. Once it has been handed over, it will become a showcase branch for Sparkasse Bielefeld with 4,800 square meters of renovated space. Among its features is naturally a high degree of self-service automation. Wincor Nixdorf, Sparkasse Bielefelds long-standing IT partner, will install the latest technology in the form of devices from its CINEO system family, including seven automated teller machines, four cash recycling systems, and several transaction terminals and account statement printers. However, these machines are merely one part of the project. In its function as general coordinating contractor, Wincor Nixdorf is responsible for the complete redesign of the building, including all the architectural planning and subcontractors, from structural engineering, electrical installation, control technology, and building acoustics, to climate control and fire protection. For us its a worry-free package, says Jrgen Bolling, Head of Organization and Administration at Sparkasse Bielefeld. G R OU N D BR E A K I NG B R A NC H D E S I G N. A team of Wincor Nixdorf experts and partners is on site at all times. The team includes a technical construction manager and a safety engineer, both with extensive experience in facility management, responsible for planning, coordinating, and monitoring all the individual tasks and subcontractors involved in the project. The project, with an investment volume in the high single-digit million range, has some special challenges in store: Parts of the
old building, including its historic facade and a variety of interior features, are classified as historic monuments and have to be preserved. Taking this into account, an architect with which Wincor Nixdorf cooperates, produced a groundbreaking branch design that combines historic and modern elements and makes a creative statement. D E TA I L E D P R OJ E C T P L A N N I NG . WIN@Branch is Wincor Nixdorfs holistic solution portfolio for bank branches. It covers every relevant area of branch design, from process analysis and to consulting and the implementation of technical and construction measures. However, even the most careful planning cannot completely eliminate surprises in a project of this order of magnitude. For example, during construction the crew discovered hazardous materials that required special disposal. Such unforeseen problems called for flexibility. A high level of teamwork from all those involved in the project was necessary to readjust schedules and project planning successfully. Project management and the client were both put to the test repeatedly, but in the end, all the different subcontractors and tasks meshed seamlessly, reports Jrgen Bolling.
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More about optimizing branch processes.
Jrgen Bolling, Head of Organization, Sparkasse Bielefeld.
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A NEW ERA AT THE CHECKOUT.

PROCESS OPTIMIZATION IN RETAILING WITH THE NEW 360 SCAN PORTAL FROM WINCOR NIXDORF.
Wincor Nixdorf is the first IT provider in the world to bring an automatic merchandise scanner to supermarkets. The 360 Scan Portal marks a minor revolution for retail checkouts.
During Wincor World in January 2011, the 360 Scan Portal attracted a great deal of interest among tradeshow visitors. After many years of intensive development work, Wincor Nixdorf had finally presented the worlds first practicable automatic scanning solution. The new generation of automatic scanners goes far beyond existing tunnel scanner technology, combining traditional shopping with rapid processing at the checkout. Not only are waiting times at the POS slashed, the system also offers customers a new, positive shopping experience. MORE TIME FOR C U S T O M E R S E R V IC E . Only a few months after Wincor World, the solution began to be tested in practice. ICA, one of the largest retail companies in Sweden, and the German REWE Group were the first to start pilot projects aimed at evaluating the processes and testing customer acceptance. The end of the pilot phases will herald the beginning of a new era at the checkout an era in which the manual scanning of products, especially fast-moving consumer goods, can be largely automated, explains Werner Kliem, project manager at Wincor Nixdorf. The new solution
relieves employees of the time-consuming and physically strenuous task of scanning merchandise, allowing them to focus on customer service. T E ST RU N I N S W E D E N. Swedish retail company ICA installed the solution, which in one of its MAXI hypermarkets in the town of Botkyrka, south of Stockholm. For the most part, the procedure for customers is unchanged. They are prompted via a customer display to place their items individually on the conveyor belt. The belt then
P R O M I SI NG P R AC T IC E T E S T AT R E W E . Processes are very similar at the REWE Center in the German town of Zlpich, southwest of Cologne. A 360 Scan Portal was installed there, exactly in the middle of the seven checkout lines. Although operation of the portal is highly intuitive, the individual steps are clearly explained to the customers with the help of a short animated clip shown on a wall display. It wasnt long before most customers were able to operate the systems without any trouble, notes Claus Deichsel, Head of Merchandise Management Processes at REWE Markt GmbH. And the level of interest among customers is high. As word quickly got around in Zlpich of the world innovation being tested at the REWE Center, the store was able to welcome many new customers interested in trying it out. FOCUS ON THE S C A N R AT E . During the first phase of live operations, which is scheduled to
transports the items through the 360-degree scanner, which reads the barcodes automatically. The customer ends the scanning of items and stops the belt by touching the screen and is prompted to register eventually refunds and then pay by card at the same place before picking up the items. Large, bulky items such as beverage crates can remain in the shopping cart and are scanned manually by an attendant. The payment process can either be integrated in the system or completed separately at a payment terminal.
last until the end of the year, the focus lies on optimizing the article scanning process. The scan rate were currently achieving lies well above 90 percent, but were looking to reach a rate of 98 to 99 percent, says Deichsel. Wincor Nixdorf and Datalogic are thus working flat out to optimize the scanning technology even further. They also intend to improve the process of scanning individual problem items. Just like with manual scanning, EAN codes on creased foil wrapping, for example, are proving difficult to recognize at times. When a problem occurs, a photo on the POS display signals that
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What are your interim conclusions after the first six months? Let me make it perfectly clear: were doing pioneer work here and quite successful work, too on an innovative system that is being tested in practice for the first time anywhere in the world. Were still gaining experience, but the automatic scanners potential is already clearly evident. What will checkout lines look like in 2015? They could consist of an intelligent mix of attended and automated checkouts. Once the technology is fully mature, an employee may well be able to provide customer service and the item could not be identified properly and will have to be scanned manually by an attendant. REWE division head Claus Deichsel is confident of finding a solution: Were optimistic that we'll be able to come to grips with these challenges and increase the scan rate even further. S M O O T H S Y S T E M I N T E G R AT I O N . Thanks to its intelligent interface, Wincor Nixdorfs software solution TPiSCAN ensured easy integration of the new system in REWE Markt GmbHs POS software. TPiSCAN is part of the TP Application Suite, a comprehensive, standardized software platform that is available worldwide. After only a few small adjustments, the automatic checkout is now fully integrated in the standard processes of REWEs POS systems, states Wincor Nixdorfs Werner Kliem. FOCUS ON CUSTOMER F R I E N DL I N E S S . In addition to further optimizing the scan rate, the pilot partners are working on incorporating the economies of speed in the process and tailoring the entire checkout procedure to fit perfectly with customer requirements. The 360 Scan Portal is capable of processing around 60 items per minute, and the goal is to exploit this potential to the fullest extent possible. REWE plans to present conclusive findings as regards the technology, processes, customer behavior, profitability, and rationalization effects by mid-2012. And the chances for that are good? I'm convinced they are. We still have to take a closer look at many individual processes and continue to search for ideal solutions. But the bottom line is that this technology has the potential to increase throughput and reduce waiting times. That is good for our customers and the innovative technology can also contribute to a positive shopping experience for them. Im confident that, together with Wincor Nixdorf, well be able to spark a minor revolution at the checkout. supervise three automated checkouts. ... and thus realize the systems cost-saving potential? The long-term goal is, of course, to reduce manual processes at the checkout and free up employees for other tasks, for example to optimize customer services. Our employees are open-minded about the solution and understand that we have to bank on innovations if we want to set ourselves apart from the competition in the long term. There are still a few challenges to tackle first though. Yes, of course. That's true for every innovation that has to prove its practicability. One of the challenges is to achieve the highest-possible scan rate.
Were doing pioneer work.

Claus Deichsel, Head of Merchandise Management Processes at REWE Mark t GmbH, speaks of the companys initial experience with the 360 Scan Portal.
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INVESTMENT IN THE FUTURE.

TP.NET AT METRO CASH & CARRY.
The METRO GROUP is a global player that lives up to its name. The company reinvested 1.7 billion euros last year, the majority in its international expansion. A total of 100 new stores were opened in 2010, and this figure is scheduled to further increase during the year 2011. In addition to the electronics chains Media Markt and Saturn, the METRO GROUP is focusing on its Metro Cash & Carry brand. With around 700 markets in 30 countries and revenues significantly in excess of 30 billion euros, the brand is an international success. The company will expand into Eastern Europe and Asia, and this year METRO AGs Management and Supervisory Boards made the decision to enter the Indonesian market. J U S T O N E P O S S OLU T IO N WOR L DW I D E . In addition to expanding internationally into growing markets, the METRO GROUP also continually invests in the modernization of its existing sales outlets. For example, its Cash & Carry markets are currently being extensively restructured and modernized. Part of this modernization includes restructuring and renovating processes, scenarios, and checkout technology. Commercial customers want to shop quickly and efficiently, and part of that is a highly efficient process at the checkout, emphasizes Dr. Gerd Wolfram, Managing Director of Metros IT subsidiary METRO SYSTEMS. Thats why the company set up a program it calls M-POS to update and harmonize the checkout concepts in all Cash & Carry stores worldwide. At the moment, many of the POS systems use country-specific applications that are, in some cases, out of date. The company has been upgrading the outdated POS systems since 2009 with an eye on uniformity. Metro Cash & Carry can ensure optimal support through internationally proven solutions provided by Wincor Nixdorf. The solution includes robust hardware in the form of the BEETLE /M-II plus H1 systems featuring powerful Intel processor technology, improved remote functions through Intel Active Management technology, simplified maintenance, and very low power consumption. At the heart of Metro Cash & Carrys installation is TP.net, the software solution platform from Wincor Nixdorf for all checkoutrelated processes in the store and across the enterprise. P R O J E C T C O NC LU D E D B Y 2 015. Essential factors in Metro Cash & Carrys decision in favor of TP.net were its availability in different languages, the wide variety of marketing functions it supports, the ease of country-specific adaptations to different legal invoicing requirements, and the ease of its integration in the groups existing infrastructure (see interview). Dr. Gerd Wolfram: Wincor Nixdorf offered us a convincing complete package of software and modern hardware, plus extensive service for installing and integrating the systems as well as for developing special functions. Metro Cash & Carrys international modernization is meanwhile underway at full speed. Nineteen countries will be completely rolled out by the end of 2011. The new systems will be installed across all Cash & Carry locations worldwide by the end of 2015.
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Efficient processes.
Dr. Gerd Wolfram, Managing Director of Metro IT subsidiary METRO SYSTEMS, talks about the worldwide checkout modernization in the groups Metro Cash & Carry stores.
More about our solution expertise for retailers.
What is the goal of your investment? Our customers are business people who have busy schedules and want to shop quickly and efficiently. That means they expect efficient processes at the checkout, too. Our POS systems were different from country to country, and some of them were quite out of date. And in many cases, we didnt have the know-how anymore to adapt them. So we needed a modern system usable in any country, a system that would support all the applications we need, make our checkout processes more efficient, and offer us both cost advantages and synergy effects. What cost advantages do you mean? We are counting on significant gains in efficiency through centralized rather than local software adaptation, and through easier, stable integration of the POS systems in central applications such as our management information system, data warehousing, or logistics. We also expect greater system stability, uniform hardware maintenance and repair, and greater energy efficiency, to name just a few things.
What was it about Wincor Nixdorfs solution that convinced you? In the package we were offered, we were especially impressed by the software TP.net. It offers a wide variety of standard functions, but as an open solution platform it can also be used to implement special requirements. For example, we need to comply with specific invoicing requirements in different countries: in Russia invoices for alcoholic beverages must be issued separately from invoices for other items, and in Turkey special invoices are needed according to the customers occupation. What other functions are important to you? All Metro Cash & Carry customers have customer cards, so we know from our data warehouse which customer bought which item, whether yesterday or last year. And since we can integrate the customer cards into the checkout process, we can use the information for customer-specific marketing activities.
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DEPOSIT SYSTEMS: SUCCESS STORY FROM THE LAND OF UNLIMITED OPPORTUNITIES.
Competitive edge through technology and experience: When it comes to ATMs with a deposit function for cash and checks (cash/check deposit module), Wincor Nixdorf is the undisputed market leader worldwide and especially in the U.S. Now, the company is aiming to further extend its lead through improved technology and optimized services.
The facts speak for themselves: Since becoming the first company worldwide to offer CCDM technology in 2003, Wincor Nixdorf has installed more than 40,000 CCDMs for over 100 customers in 71 countries. The modules come with persuasive advantages, including, right from the start, the input of banknotes and checks via a single slot and the option of depositing them in bundles of up to 50 each. Wincor Nixdorf has been able to maintain its lead through continuous further development in the areas of processing quality and speed. At the end of 2007, for example, it was the first company to put mixed media processing on the market, where up to 50 checks and banknotes can be deposited together and are processed by the systems at the same time. T H E U. S . I S T H E YA R D S T IC K . CCDM technology is a decisive success factor, particularly in the United States. While the land of opportunity is seemingly ruled by credit cards, checks are actually still used quite frequently, with weekly or monthly earnings being settled by paycheck, for example. Banks therefore showed a great deal of interest when Wincor Nixdorf first introduced this technology to the American market. Used initially predominantly by large banks, CCDM technology has now become a megatrend in the United States and has long since brought smaller institutions into the arena as well. This is due to the fact that CCDMs generate lower costs than counter transactions, shorten waiting lines in front of the counters, and speed up check and cash deposit transactions significantly. It takes a mere 20 seconds to process ten deposited banknotes, with the transaction time for ten checks only being five seconds longer. And Nixdorf's systems offer another advantage: they are upwards-compatible. This means self-service systems that accept banknote and check deposits via envelope can be fitted with a CCDM on site in only a few hours. The same applies to adding the mixed media function that allows banknotes and checks to be deposited together. The required upgrade can also be completed. The fact that Wincor Nixdorf is offering all this under the name of CCDM 2011 in the U.S. also has to do with the technical enhancements. Through optimized mechanical processing of banknotes and checks, the company has managed to reduce jam rates by up to 25 percent, thus achieving higher system availability. Further enhancements to the software ensure that counterfeits can be recognized and 4 0 P E R C E N T I NC R E A S E I N E F F IC I E NC Y. The solid technical grasp that Wincor Nixdorf has of the entire scenario is illustrated by a simple figure: Compared to previous models, 40 percent more media can be deposited in the CCDM 2011 before an error occurs a remarkable increase indeed. At the same time, the stability of the CCDM 2011 is ensured through increased service quality. According to Jens Bohlen, who is responsible for Wincor Nixdorfs global service business, this is a crucial factor. For customers, because the availability of their systems is the most important criterion for them. And for us at Wincor Nixdorf, because excel$
CH E
if ten banknotes and ten checks are deposited in a Wincor Nixdorf system together, the transaction takes approximately 55 seconds. By way of comparison, the same transaction would take 5 to 8 minutes at the counter. In addition to allowing checks and banknotes to be deposited via a single input slot, Wincor
removed more reliably and quickly. Our research and development team was able to implement these optimizations so rapidly because the hardware and software components were developed in-house and therefore harmonize with each other perfectly, explains Uwe Krause, Vice President Banking at Wincor Nixdorf. And the media of checks and banknotes should not be underestimated. Size and condition, temperature and writing, genuine or counterfeit all this needs to be captured, analyzed, and identified through image recognition. Not to mention that many check and banknote bundles are held together by a paper clip that inevi+$ +$ CREDIT
DEPOSIT SYSTEMS.
ACCELERATED PROCESSING OF BANKNOTES AND CHECKS.
INPUT
CK
Cash/Check Deposit Module

INPUT IN A JOINT TRAY RECOGNITION AND PROCESSING
Banknotes
CONFIRMATION/ CORRECTION
Individually
$ $ $ $ $ $
K ECK CHECK H C CHECK C E CH
Checks
in bundles
$E C K CHECK $ K CHEC CH K $ $E C CH
tably lands in the input slot as well. The printers, which print out an image of the check as a receipt, can also become a problem. If, for example, ten checks are deposited, the receipt quickly turns into a paper roll that impatient customers often tug at vigorously. The roll then gets caught, causing a paper
PRINTER
or in mixed bundles
Crediting to account
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
K ECK CHECK CHECK CHECK CHEC CH K ECK CHECK CHECK CHECK CHEC CH
RETURN/STORAGE IN EXTRA CASSETTES

$
?C ??
POSTING
CHECK CHECK CHECK
T O TA L
T O TA L
Receipt
Unaccepted media
STORAGE IN CASSETTES
STORAGE IN CASSETTES
OUTPUT
jam and automatically triggering a service callout.
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lent, reliable service generates follow-up business and attracts new customers. I M P R OV E M E N T I N S E R V IC E S K E E P S PAC E . To live up to its own high standards, Wincor Nixdorf has reorganized and extended its entire service structure in the U.S. For example, to satisfy the demand for response times of less than two hours and recovery times of less than four hours, Wincor Nixdorf got support for its own team of technicians by joining forces with partners who have a broad geographical presence and the corresponding manpower. At the same time, intensive training and certification programs were carried out for the service technician team. What's more, every system covered by a service contract is monitored via a dashboard in the Customer Excellence Center, so that every fault is registered immediately and can be rectified quickly. The goal: To keep operational quality and technical performance under control through realtime process monitoring and to be able to make statements on efficiency, explains Jens Bohlen. In addition, the entire service process was changed. Incoming tickets, for example, are automatically assigned to a technician by the CRM system. The technician then sets all further diagnosis and repair measures in motion. Intelligent fault analysis also plays an important role, since it allows calls to be classified and callouts to be planned more efficiently. After a service callout, the technicians enter information on the repair process into a knowledge database with the help of their PDAs. This information is analyzed on a daily basis, examined for areas of fault concentration, and made available to other technicians to support them in their work. The aim of these and other improvements and innovations is clear: higher system availability for the customer. And this has already been accomplished. With our CCDM 2011, we have achieved a significant increase in availability, Jens Bohlen points out. We believe that locations featuring our CCDMs are among those with the highest number of transactions. And that puts the high level of availability and quality achieved there into a whole new perspective.
Uwe Krause, Vice Jens Bohlen, Senior Vice President Services President Banking at Wincor Nixdorf. at Wincor Nixdorf. More about our solution expertise for retail banks.
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According to David Mathieu, CIO of Andr, the winning points in the decision were product quality, product-related services, and Wincor Nixdorfs many years of experience with solutions for retail environments. The next step in the new partnership between the companies was the introduction in 2009 of Managed POS Services, with the objective of making the stores checkout processes faster, simpler, and more stable through remote monitoring. Many Andr
In France, footwear from Andr is well known and popular with men and women alike. Recently the company optimized its checkout processes to ensure even better service to its customers a goal the company realized through Managed POS Services from Wincor Nixdorf.
stores have only one POS system, which is likewise the sole connection to the payment server for customer payments with bank and credit cards. This makes the POS system a key factor in sales:
MANAGED SERVICES: FAR MORE POSSIBLE.

STEP BY STEP TO A PROBLEM-FREE FUTURE.
if it fails, nothing works.
catastrophe like that is precisely what Managed POS Services are
designed to prevent. All of a customers systems can be switched simply and easily to Wincor Nixdorfs eServices platform via a connectivity box (cBox), which the retailer simply installs in its own IT network. With the cBox in place, Andr stores can use the company network to take advantage of Wincor Nixdorfs remote services
n France, the Vivarte Group company Andr is among the leading brands of shoes, with a recognition factor of more than 98 percent among the French above all for French women, who
and preventive maintenance. Now everything can be monitored and checked, from network errors to drive failures and even processor temperatures. Wincor Nixdorf was even able to fulfill Andrs requirement that its data access be limited to relevant system data. The implementation of Managed Services from Wincor Nixdorf has enabled us to increase the reliability of our POS systems significantly, says David Mathieu. For example, the solution has prevented two-thirds of all failures every month and drastically cut the number of on-site service calls and this success was evident within three months of implementation. As a consequence, by mid-2010 every system in every Andr store was connected with the solution. The project has meanwhile given the shoe retailer an appetite for success. Andr is already considering expanding the remote solution, for example for centralized control of software distribution. New functions such as an upgrade to the POS solution and new front office software are already scheduled for implementation in 2011 and, in all likelihood, in partnership with Wincor Nixdorf, says David Mathieu: Because the company understands what happens in our stores. We speak the same language. And because were convinced that theres a lot more we can achieve with Managed Services in the future.
regard the brand as synonymous with the latest in footwear trends. But it wasnt always that way: until just a few years ago, Andr did not reach the fashion market as well as today. So in 2000, the company launched an extensive program of changes. That campaign was a success today the company, which operates 200 stores, is considered to be a fashion leader, with an approach that features concept stores in a new and modern design. Parallel to the image revamp, the companys IT strategy and its sales processes were also redesigned. The hunt for a partner for this project didnt take long: it led almost automatically to Wincor Nixdorf because at several of the 24 fashion retailers belonging to the Vivarte Group, POS systems from Wincor Nixdorf are already in use. Andr made the most of this recommendation, replacing its old systems in 2006 with those of the BEETLE/M-II generation.
David Mathieu, CIO, Andr.
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A CONVINCING GLOBAL IT PARTNER.

POS SYSTEMS WITH SERVICE AND SUPPORT.
Castorama, a hypermarket operator in the DIY and garden store segment, is moving ahead strongly in Russia: in the next two years alone, the company plans to open nine new stores in the Russian Federation, and is relying especially on Wincor Nixdorf as a global partner.
At the end of 2005, Castorama opened its first Russian store in Samara, and sixteen more have followed. Today, the chain has 2,300 employees and stores in many Russian cities. About two years ago, Castorama, which is wholly owned by the British company Kingfisher plc, began to look for a global partner for the standardization and optimization of its IT infrastructure. For its parent company Kingfisher, Wincor Nixdorf was the top choice from the very beginning: We knew that the operation and control of POS systems (Managed POS) in retail environments is one of Wincor Nixdorfs strengths, and that the company could reliably honor the servicelevel agreements we wanted, explains Dmitriy Fedorov, Head of IT Chain at Castorama. R E C OV E R Y I N L E S S T H A N FOUR HOURS. However, Castorama wanted more than just standard IT support for its checkout lines, with up to 24 POS systems per store. Instead, the service provider of choice needed to be able to provide IT services aligned to a customer-specific model an escalation matrix with calls, e-mail, remote solutions, technician call-outs, and recovery windows of either two or four hours. But these were demands that Wincor Nixdorf, after analyzing Castoramas processes and setting service provision parameters, was able to fulfill and today, the company is responsible for complete POS support in eight Castorama stores. P R OJ E C T M A NAG E M E N T A S E A R LY A S T H E C O N S T RUC T IO N PHASE. Meanwhile, Wincor Nixdorf also has a special role in Castoramas growth plans. The DIY retailer relies on the service providers New Store Opening (NSO) concept as a firm part of its strategy when opening new stores. As soon as Castorama has chosen a building, a Wincor Nixdorf team goes into action, laying out and installing the necessary IT, including servers, switches, printers, and much more. Castoramas primary requirement was to have just one contact partner who was responsible for everything, and thats precisely what Wincor Nixdorf offers. Within its NSO concept, the company functions as general coordinating contractor and project manager, from the planning stage all the way to the turnkey handover of the store to Castorama. This is an important cost factor for Castorama given the unimaginably vast expanse of Russia: It would simply be too expensive for us to send out our own teams all the time, says Dmitriy Fedorov.
Dmitriy Fedorov, Head of IT Chain, Castorama.
And in Fedorovs view, the partnership between the two companies has proven its value, time and again. The quality of POS service has improved significantly, and the opening of new stores is much simpler and less expensive than it used to be. Even if further improvements in some processes and services are possible, Dmitriy Fedorov is sure of one thing: The company continues to be a preferred IT partner for us. And there will come a day when we no longer remember how we ever opened a new store without Wincor Nixdorf.
G r o u p M a n a ge me n t Rep o rt
Gr oup Account s
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AS FOR THE FUTURE,
YOUR TASK IS NOT TO FORESEE IT, BUT TO
ENABLE IT.
ANTOINE DE SAINT-EXUPERY
FRENCH WRITER AND POET, 190 0 1944
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Responsibility Statement.
To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the Group Management Report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group. Paderborn, November 17, 2011 Wincor Nixdorf Aktiengesellschaft, Paderborn
Heidloff President and Chief Executive Officer
Auerbach Executive Vice President
Dr. Wunram Executive Vice President
Gr oup Account s Group Management Report
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Group Management Report.

The Wincor Nixdorf Group. Value Management, Targets and Strategy. Achieving Sustained Growth in Value. Our Solutions Portfolio. Business Environment. Group Business Performance. Segment Performance. Performance, Financial Position, and Assets. Capital Expenditures. Disclosures Pursuant to Section 315 (4) HGB and Explanatory Notes. Non-nancial Indicators. Risk Report. Events after the Balance Sheet Date. Report on Expected Developments. 54 56 57 58 63 64 67 71 74 75 81 88 92 92
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Wincor Nixdorf AG Group Management Report for the Fiscal Year 2010/2011.
T HE W INC OR NIX D OR F GROUP.
Organizational Structure. Wincor Nixdorf came into existence in 1999, when it was carved out from the Siemens Group. It was subsequently floated in 2004. Today Wincor Nixdorf is a global enterprise, based in Germany, with over 70% of net sales derived from its international business. Our main focus is on the retail banking and retail industries. A report of our activities in these areas can be found in the sections entitled Banking Segment and Retail Segment. Our production sites combine to form an international network, as do our research and development facilities. In this area, we also work with a continually expanding group of external partners and research institutes. In the main, we sell our products and services through our own sales organization. One of the hallmarks of Wincor Nixdorfs business model is its proximity to customers. We have established subsidiaries in 42 countries. Moreover, we now have a presence in over one hundred and ten countries worldwide as a result of the ongoing expansion of our links with many sales partners. Accordingly, over half of the Groups around 9,200 employees are based outside Germany. Details of the Wincor Nixdorf Groups legal structure can be found in the Notes to the Group financial statements under the heading Consolidation Group. Information about our production and development sites is included in the section entitled Non-financial Indicators. Acquisitions, New Companies, and C o o p e ra tion Agreements. In the year under review, we main-
Glossary: Self-service Systems, see page 145
Banking Segment, Retail Segment, see page 67 et seq.
Glossary: OEM, see page 145
Glossary: Services, Professional Services, see page 145
newly founded company CI Tech Components AG, Burgdorf, Switzerland (CI Tech) with economic effect from January 1, 2011. Since July 1, 2011, CI Tech has been managed jointly by G&D and Wincor Nixdorf. CI Tech conducts research in the growing market for banknote-testing sensor technology and develops and produces modules that can recognize genuine cash. These can be used not only in cash sorters, payment systems, ATMs but also in other self-service systems, e.g., automatic ticket machines for rail companies. CI Tech markets these modules and related services independently to the Groups companies and as an OEM. We have also strengthened our position on the software and professional services side of the banking industry through our takeover of Dynasty Technology Group S.A. (Madrid, Spain) and a subsidiary in Brazil. In the last fiscal year, we also founded a new company in South Africa to strengthen our sales activities there. Full details of all changes affecting those companies included in the consolidated financial statements can be found in the Notes to the Group financial statements under the heading Consolidation Group.
M a n a ge m e nt a nd C o n tro l o f the C o m p a ny by the B o a rd of D i re c to rs a n d th e Sup e r v is o r y B o a rd . Wincor Nixdorf Aktiengesellschaft (in the following Wincor Nixdorf AG) is run by a Board of Directors comprising three members: the Chairman Eckard Heidloff (President and Chief Executive Officer) as well as the two other members of the Board of Directors Stefan Auerbach and Dr. Jrgen Wunram. The Board of Directors is responsible for managing the joint stock corporation. It ensures that business is conducted in accordance with legal requirements, the German Corporate Governance Code, Wincor Nixdorf AGs Articles of Association, and the Rules of Procedure of the Board of Directors. Within this context, all decisions and actions are focused on protecting the interests of the Company. All resolutions of the Board of Directors are taken by simple majority. Where the votes are split, e.g., if only two members of the Board of Directors are present at a meeting or if one member abstains, the vote of the President and Chief Executive Officer is counted twice. The
Group nancial statements, section Consolidation Group, see page 105
Non-nancial Indicators, see page 81 et seq.
Glossary: Solutions, see page 145
tained our pattern of global expansion through acquisitions and the formation of new companies. Giesecke & Devrient GmbH, Munich, Germany (G&D) and Wincor Nixdorf have now combined their activities in the development, production, and marketing of security technologies with specific regard to the testing and processing of banknotes. This cooperation agreement aims to create new solutions that will significantly reduce the costs associated with cash management. In this context, the operating business of BEB Industrie-Elektronik AG, Burgdorf, Switzerland, was transferred to the
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Rules of Procedure for the Board of Directors include details of specific transactions that require the approval of the Supervisory Board. It is the role of the Board of Directors to determine the strategic direction of Wincor Nixdorf AG in conjunction with the Supervisory Board, and then to implement it in a responsible manner. In doing so, the Board of Directors also monitors the efficiency of the management tools used throughout the Company. Wincor Nixdorfs two primary objectives are to strengthen the competitiveness of our customers and to achieve sustained growth in enterprise value. Therefore, the planning, control, and risk management systems by means of which the Companys operations are controlled are given a high management priority. The Board of Directors informs the Supervisory Board regularly, promptly, and in a detailed manner on all key issues related to planning, business trends, and the current risk situation. All deviations from agreed plans or established targets are reported and explained to the Supervisory Board. The role of the Supervisory Board is to monitor the work of the Board of Directors. It performs these duties in accordance with statutory provisions, the German Corporate Governance Code, the Articles of Association of Wincor Nixdorf AG, the Rules of Procedure for the Supervisory Board, and any resolutions of the Supervisory Board itself. The Supervisory Board and the Board of Directors work together on the basis of mutual trust in the best interests of the Company. In accordance with the Codetermination Act (1976), the Supervisory Board of Wincor Nixdorf AG is made up of twelve members, six of whom represent the shareholders and six the employees. Decisions of the Supervisory Board are adopted by resolution. Resolutions are passed by a simple majority of the votes cast, with the exception of those cases in which the law specifies a different majority requirement. The voting procedure is as follows: if the votes are split and a second vote on the same proposal is also split, the Chairmans vote is counted twice.
C o m mitte es. The Supervisory Board has established four committees in total: a Mediation Committee, a Personnel Committee, an Audit Committee, and a Nominations Committee. Compensation. Members of the Supervisory Board receive
sory Board compensation as well as the remuneration of the Board of Directors can be found in the Compensation Report. This forms part of the Group Management Report and is presented in this Annual Report in the section entitled Corporate Governance.
B u s i ne s s M ode l . The main focus of our business activi-
Corporate Governance, see page 12 et seq.
ties lies on retail banking and the retail industry. Both industries face increasingly complex challenges. Solving these has led to a rapidly expanding role for information technology (IT), which is no longer regarded simply as a means of ensuring cost-efficiency, but increasingly as a driving force for competitive growth, setting the pace for change within companies. As such, IT has established itself as a key element of our customers strategic planning and operating business. Furthermore, IT processes are becoming increasingly complex. At the same time, the role of change management is expanding to cover the analysis of existing procedures, conceptual planning for entirely new processes, the integration of new information technology into existing infrastructures, and the partial or even complete outsourcing of operational management. These developments are also reflected in our portfolio. Originally a dedicated hardware manufacturer, Wincor Nixdorf has evolved and expanded into the area of software and services. Our expertise lies in optimizing processes and systems through the best possible combination of hardware, software, and services, e.g., from a total cost of ownership perspective. We have consistently increased our share of the value chain in line with the process of change and innovation among our customers. You will find more information about our services in the section entitled Our Solutions Portfolio.
M a rke t a nd Com pe ti ti on. Globally, Wincor Nixdorf is
Glossary: Total Cost of Ownership, see page 145
Our Solutions Portfolio. see page 58 et seq.
fixed annual compensation payable at the end of the fiscal year, in addition to emoluments for attending meetings of the Supervisory Board and its committees. Further details of Supervi-
acknowledged as one of the top market players, with a specialized portfolio of software and services for retail banks and retailers above all in the worldwide hardware business, where we are one of the biggest suppliers of cash systems and programmable EPOS systems. Innovative high-end systems, which lie at the heart of solutions designed to improve customer processes, are a core element of our business strategy. Indeed, it is thanks to these solutions that we are acknowledged as an innovating force within our markets.
Glossary: Cash Systems, see page 144
Glossary: Electronic Point-of-Sale, see page 144
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Impact of Economic and Legal Fac tors o n the Business. Details of the economic factors that currently
Risk Report, see page 88 et seq.
Doing Business the Sustainable Way, see page 86 et seq.
affect, or may in future affect, our activities are presented in the Risk Report. Legal factors can be found in the section Non-financial Indicators under the heading Doing Business the Sustainable Way and in the Risk Report.
Our Strategy. We have defined four strategic levers as the means of driving growth and boosting our performance over the next few years. While all four of these levers complement each other, they can also be used independently to exploit potential new growth. 1. Global Expansion. Our goal is to maintain our position
VALU E M A NAGE M E NT, TA RGE TS, A ND ST R ATE GY.

Va lue Management. Wincor Nixdorfs primary goal is
and remains that of achieving sustained growth in enterprise value. The criteria we use to measure whether we have achieved this goal are profitability; innovative solutions consisting of hardware, software, and services; realized returns and secure jobs. All our actions and processes are geared towards achieving profitable growth of the Group and increases in net sales and profits that exceed the industry average as far as possible. To help us achieve these goals, we have implemented a performance-based remuneration system that is applied across much of the Group and at all hierarchical levels.
Guiding Objective. Our business operations are geared
towards driving and supporting change within retail banks and retail companies throughout the world. By designing processes and procedures that are as innovative, efficient, and customerfriendly as possible, we can help make our customers fit for competition and for the future. Equally, by providing the full range of solutions and know-how our customers need from a single source, acting as partners in change, we help reduce the complexity of the tasks facing our customers. Naturally, this also has benefits for Wincor Nixdorf. To this end, we continue to bundle our strengths, offer new and competitive services, and expand our skills base in a systematic form. Furthermore, our focus on the branch operations of banks and retailers has given us a wide-ranging and deep-rooted understanding of our customers processes. The sole criterion guiding all our work is that of maximizing customer utility. We want to create sustainable added value for banks and retailers, and in doing so retain their business over the long term.
as the outright market leader in Germany and to strengthen our already excellent ranking throughout Europe in both of our business segments. We view Europe as our home market. It is from here that we receive fresh impetus for business development and the driving force required to generate growth at a global level. Together, Asia/Pacific/Africa and the Americas account for around two-thirds of the global market. It is for this reason that we wish to drive growth within these regions in particular. In the Asia/Pacific/Africa region, our goal is a place among the top providers in both of our business segments. In the Americas, we aim to improve our market position significantly. Emerging markets, especially the BRIC states (Brazil, Russia, India, and China), play an important role in our globalization strategy. It is here that retail banks and retailers hope to increase their involvement in response to global economic growth.
2 . I nnova ti on. Our strength lies in our ability to innovate, and for this very reason we employ a significant proportion of our staff in Research and Development (R&D). Every year, we also invest over 4% of net sales in R&D projects. We intend to maintain a high level of spending on R&D and to keep improving our effectiveness in this field. This high level of spending on R&D is intended to safeguard our leading position as regards innovation. We also aim to further shorten development times and bring new products to the market even more quickly, while of course maintaining the same extremely high level of quality and efficiency. 3 . A l l - e m bra c i n g , H i gh- q u a l i ty Se rv i ce s Po rt folio. The success of our customers depends critically on out-
standing levels of IT system availability and on the efficiency of their business processes. Only if these are in place can they offer their own customers the best possible service and stand out from their competitors.
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So that our customers can respond more efficiently and more rapidly to complex changes in their companies IT requirements and fully exploit the benefits provided by their IT systems, we have combined our know-how into a range of service modules. Our comprehensive service portfolio helps to shape these processes. Our goal is to open up potential new business by continuously expanding our portfolio especially Professional Services, Managed Services, and Outsourcing (see Our Solutions Portfolio).
4 . E xpa nsion a nd Transfer of Know-how to Other Applications. Wincor Nixdorf is not only growing
To complement these ongoing programs, we launched a number of new projects in the year under review. These are intended, for example, to further enhance the level of professionalism within our sales organization and in the provision of services through global process standardization. They also focus on the development and preparation of new products for subsequent marketing, especially in the emerging markets (primarily the BRIC states). Other ProImprove projects are designed to improve cost positions through structural change.
Glossary: Managed Services, Outsourcing, see page 144 et seq.
Our Solutions Portfolio, see page 58 et seq.
AC H IEV ING S USTA INED GROWTH IN VA LUE.

F i na nc i a l a nd N o n - f i na nc i a l Pe rfo rm a n c e I ndi c a to rs . The Groups operating and non-operating business
at a regional level; it is also expanding more and more into new applications that are characterized by similar structures and hence similar IT infrastructure requirements, e.g., post offices and service stations. We aim to exploit potential synergies and potential growth in related areas of business without losing sight of our principal focus on Banking and Retail.
Pa ra llel Initiative s in Support of Corporate G o a ls. During the fiscal year under review, as part of its
overall strategy, Wincor Nixdorf made strenuous efforts to support growth through targeted marketing activities. At the same time, a series of cost-reduction and efficiency measures were implemented in order to boost profits. As scheduled, our ProFuture program, which was launched across the entire Group in 2008/2009, closed at the end of the last fiscal year (see Costs). We also maintained our existing programs designed to provide ongoing support for our business strategy. These include Road to the Top, which focuses on achieving country-specific market objectives, ProImprove to boost profitability, and Innovation & Quality, which supports our capacity for innovation and the quality of our services. In addition, as a means of advancing our corporate culture, we took further steps to implement our business concept People with Spirit, primarily in the area of personnel development (see Non-Financial Performance Indicators).
activities are both controlled using a series of carefully chosen financial and non-financial indicators that feed into a central indicator control system at Group level. We measure the success of our Banking and Retail segments, of each region, of our subsidiaries and investments, and of our Hardware and Software/Services business streams. Production, Development, and Central Administration are also integrated into the system. The indicators we use to determine the performance of regions, subsidiaries, and the core segments are based on growth in net sales and profit, operating margin, and cash flow. Other Group control indicators include gross profits and margins, selling, general and administration expenses, and working capital. In addition to those indicators that measure the efficient use of resources, we also evaluate and optimize our global production network on the basis of quality, supplier reliability, and stock turn indicators. Our central administration departments endeavor to offset increases in their own input costs by productivity gains and economies of scale. Further information is available in the section entitled Non-financial Indicators. Control indicators have also been established for our nonoperating business. Indicators, such as the financial result and the Groups effective tax rate, allow us to evaluate the degree of success achieved.
Costs, see page 66
Non-nancial Indicators, see page 81 et seq.
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Diffe rentiated Multi-year Plannin g for A l l L e vels and Business Areas. The starting point for all man-
C o re C o m p e te n c e s Sought by Re ta i l B a n k s a nd R e ta i l e rs . Customer-friendly and Efficient Branches. Branch operations play a key role as part of the overall mix of sales channels in the bank and retail industries. Although bank customers are making increasing use of other services in order to conduct their transactions, the branch remains the most important point of contact and sales channel. The same is true in the retail industry, where the branchs position as the number one sales platform is undisputed, regardless of the retail segment or format. Against this background, banks and retailers are aiming to intensify sales in their branches while at the same time enhancing service quality, efficiency, and thus profitability. Within this context, Wincor Nixdorfs particular strength lies in its ability to improve the different branch-level processes through the application of IT and to optimize those processes across every sales channel. By way of example, our portfolio of services can help banks and retailers restructure every aspect of their branch operations from analysis, consulting, and redesign through to implementation and actual operation (WIN@Branch for banks, WIN@Store for retailers). Pro c e s s Au to m a ti o n . Our core competences also in-
Glossar: Distribution Channels, see page 144 Branches remain the most important sales channel worldwide
Glossary: Consulting, see page 144
agement and control processes is a rolling annual strategic planning, which also determines the Groups long-term investment focus. This planning is used in turn to establish mediumterm objectives for the Banking and Retail segments and for the different units and functions within the Group. Budget targets are drawn up on the basis of the multi-year planning. They flow into each business units operational planning, which then serves as a basis for the preparation of detailed budget targets and measures. Operational planning also involves conducting a review of our risk and opportunities portfolio. This forms the basis of risk and opportunity management at Wincor Nixdorf. Monthly forecasts are produced in response to current profits and developments. This allows us to identify any deviations from agreed targets at an early stage and to take prompt measures to ensure that those targets are still met. IT systems are used for planning, control, and reporting processes. The ongoing development and comprehensive integration of these information systems ensure the continuous management and control of all the Groups business areas.
O U R S OL UT IONS P ORT F OL IO. To ensure they remain successful over the long term in their respective markets, retail banks and retailers around the globe have to submit their business processes to frequent review. The goal here is to design ever-more efficient processes and enhance the companys appeal to its customers by adding new services for end users. Wincor Nixdorf has geared its portfolio towards IT-based services in order to meet these objectives.
clude solutions for the automation of many other business processes for retail banks and retailers at branch and branch network level, and we strive continuously to expand the scope of these applications. We start by shifting manual processes, such as transactions and information, on to a self-service basis. This is followed by the automated provision and analysis of customer data, which can then be used across different sales channels (e.g., in direct marketing).
C o s t- e ff i c i e n t a nd Se c ure C a s h H a nd lin g . For retail banks and retailers, cash handling not only involves extensive manual input and substantial costs; it also represents a high security risk. It is for these reasons that we have long since focused on the automation of cash processes; indeed, in this area we have already introduced numerous innovative products to the market. For the first time, our modular Cash Cycle Management Solutions portfolio has very largely automated the cash processes of banks and retailers, closing cash cycles and creating a more efficient cash logistics chain.
Glossary: Cash Cycle Management, see page 144
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Wincor Nixdorf is the only provider in the market able to cover the entire process chain from end to end with its own solutions. For our customers, that means maximum security, the greatest possible degree of transparency, enhanced processes, and a reduction in costs of over 20%. Our cash handling optimization portfolio comprises hardware, software, consulting, and services. Hardware: The CINEO systems at the heart of our portfolio feature a standardized banknote storage device that can be exchanged between systems. Software: We offer a portfolio of software (Cash Cycle Management Solutions Base) that allows banks and retailers to control the management and optimization of their cash processes themselves all the way from the branch to the Central Bank. The individual applications that make up the portfolio perform a range of tasks, e.g., branch-wide cash stock forecasting and optimization, order management, tracking (Track and Trace), and reporting. Consulting and Services: Wincor Nixdorf offers a range of consulting services to help its customers design their cash processes and provide a firm foundation on which to base their investment decisions. These include cash cycle management consulting, which begins by analyzing the customers processes using a newly developed software tool. Another service we offer to banks and retailers involves the outsourcing to Wincor Nixdorf of their entire cash management operations, from the filling and emptying of systems through to the coordination of cash-in-transit (CiT) companies.
S o l u tions for Ca shless Transactions. In addition
Consulting, Solutions Development, and IT Inte gra ti on f rom a Si n g l e Sourc e ( P rofe s s i o n a l Services). Our global Professional Services units provide retail banks and retailers with consulting services and software from Wincor Nixdorf and other specialist providers with the focus on individual integration. Our Professional Services for banks are divided into Consulting Services, Technology Services, and Application Management. Consulting Services focus on the optimization of business processes in the area of cash logistics, specialized process consulting for core banking applications, and the evaluation of industry-specific applications. Technology Services cover the development and integration of software architecture concepts and new applications. Application Management involves the long-term maintenance and regular updating of applications. Our key competences here lie in the area of branch applications to optimize customer interaction and innovative self-service solutions. Specifically for retailers, we offer a range of consulting and integration and customizing services. In the area of consulting, we combine expertise in both methods and processes and help our customers to deal with strategic and operational issues by providing defined consulting packages and a uniform methodology. This might involve advising our customers on how best to restructure the checkout area, cash processes, or solutions at head office level such as SAP applications. In the context of integration, we support the piloting, implementation and rollout of total solutions in both industries. Our services include project management, functional and technical design, and software development. This may be achieved using a combination of our own solutions, others provided by our partners, and industry-standard solutions such as SAP. Within the German-speaking region, we have established a leading position for end-to-end SAP consulting in the retail industry. To strengthen its market profile, Wincor Nixdorf has begun to merge its project implementation expertise into global, cross-industry practices, e.g., in the areas of Cash Cycle Management Solutions (CCMS) and Cashless Payment Solutions. We have made further steps towards global standardization in the field of project development. The aim is to implement internationally standardized methods and tools and a uniform infrastructure across all segments on the basis of uniform concepts of IT architecture.
Wincor Nixdorf is the only provider to cover the entire cash handling process chain.
CINEO stands for Cash Intelligence Neo/New
Glossary: Rollout, see page 145
to its cash process solutions, Wincor Nixdorf can provide software and concepts for the processing of cashless transactions. Our Cashless Payment Solutions portfolio uses a standardized method to settle transactions in both the retail banking and retail industries that are received via the systems operated by retail banks, through checkout systems, over the Internet, or via other sales channels. Our end-to-end software handles processes such as recording, identification, and authorization and then forwards the data to the target systems. We have also developed a component that helps to avoid the fraudulent use of card data. As well as processing electronic payments, Wincor Nixdorfs portfolio includes integration and business management services.
Wincor Nixdorf also provides software and concepts for cashless transaction processing
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Ensuring Maximum Availability of Installed IT Systems and Cost-efficient Operation. The major-
Glossary: Service Desk, see page 145
Glossary: Cash Recycling System, see page 144
Glossary: Skimming, see page 145
ity of services we offer involve product-related service agreements covering the entire product life cycle of customer systems from rollout, installation, and implementation through to maintenance and repair, support desk solutions, and supplies of consumables. Our range of Managed Services for business management include the remote monitoring, preventive maintenance, and operational control of self-service terminals (Managed SST) for retail banks and the operational management of checkouts and self-service systems (Managed POS) for retailers. We see ourselves as a partner over the entire life cycle of a branch (Managed Total Store for retailers / Managed Total Branch for banks) from the point of opening (New Store Opening), when we can provide and operate the branch-related IT infrastructure, through to its refurbishment or closure. Managed Services are modular and can be combined to meet each customers individual requirements. As well as generating cost savings, they ensure cost transparency and planning security in the operational management of IT resources. Our Managed Cash portfolio is designed to optimize the management of the cash stocks held by our customers, including the control and monitoring of CiT companies. Our Outsourcing services are primarily aimed at the banking industry and involve our taking over operation of the customers IT infrastructures and self-service terminals. To this end, we implement a range of solutions covering Product Related Services and cash management through to the processing of cashless transactions. Subject to a separate contractual agreement, we can also take over responsibility for those staff who previously carried out these functions for the customer. The technical basis for managing and providing all our services is Wincor Nixdorfs eServices Platform, which acts as the nerve center for the remote monitoring and control of customer infrastructures and processes insofar as they concern IT-based operational management. With regard to cash management, it also facilitates cash-stock forecasting and optimization as well as order management for CiT companies. Our Connectivity Box can also be deployed as an interface between individual customer systems and the eServices Platform. Its purpose is to monitor customer systems and provide information about their status, e.g., in the event of disruption.
In order to achieve a greater level of efficiency, we combine tasks and functions into organizational units (Global Service Delivery Centers). Our central Customer Care Center handles over 10,000 calls a day around the clock and in 30 languages. In some countries, we have set up specialist teams to oversee the global system management of complex international projects. The cost of storage and rapid delivery of spare parts is reduced by the development of logistics centers. We also work with a network of certified partners in order to guarantee uniform quality of service in those countries where we do not have our own support teams.
Addi ti o n a l S o l uti ons fo r R e ta i l B a n k i n g . Autom a ti on a n d Se l f - s e rv i c e . One of our goals is to
relieve branch staff from routine and manual activities while at the same time allowing banks to offer their services seven days a week around the clock. To this end, Wincor Nixdorf can automate those processes that do not form part of the bank staffs core duties (e.g., cash disbursement and the deposit of banknotes, checks, and coins) by migrating them to self-service. In systems equipped with our cash recycling technology, cash deposited in ATMs and automated teller safes is first subjected to a counterfeit check before being made available once again for disbursement. Our portfolio of self-service systems is currently the most comprehensive on the market. The incorporation of new hardware components and software applications into our systems allows us to expand the range of services we offer to consumers, including ticket issue, topping up of pre-paid cell phone cards, and bill payments using a self-service system. Our self-service portfolio also includes transaction terminals and statement printers.
Pro te c ti o n a ga i n s t Cri m i na l A tta ck . Security gen-
erates confidence, so establishing a secure environment in every area of the banks operations from data protection and building security through to processes and sales channels is of critical importance. Our security portfolio offers solutions to counter a large number of potential attack scenarios that range well beyond the well-known threat of ATM skimming. The protection we offer covers data, software, and cash security, identity and access controls, and the monitoring of branch security. Our entire portfolio of security solutions is updated constantly to include new consulting and support services. We also offer
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our customers an option to link their branches for monitoring purposes to our own security center. One of our latest developments is the Dynamic Fraud Management Solution, which combines information from different sources and subjects it to intelligent analysis so that follow-up action to prevent damage can be initiated more rapidly and in a more targeted manner.
C e n tra lize d Process Management using Cons i s tent Custome r Data. Bank customers use a wide
range of channels to communicate with their bank. Whichever channel they choose the branch, the self-service terminal, or mobile banking they expect to find a consistently high level of service and a uniform image. Wincor Nixdorfs Retail Banking Suite (ProClassic/Enterprise Retail Banking Solution Suite) helps banks to implement corresponding multichannel strategies. Our Retail Banking Suite lays the foundation for process standardization and for the standardization and optimization of IT infrastructures. It allows banks to assign customer-based transactions into different sales channels and manage them as a whole. Our portfolio of services in this area includes applications that control self-service processes, staff-operated branch activities, system monitoring, mobile banking, and cashless transactions. Since the Retail Banking Suite is designed as a service-oriented architecture, applications can be implemented rapidly. As part of our service portfolio, we also offer our customers an option to outsource the operation of the Retail Banking Suite to us from software implementation, regular updates, and rights management through to remote monitoring and consolidated reporting.
Ad d i tional Solutio ns for the Retail Industry. T h e Checkout Pro cess. The nerve center of any retail
branch is the checkout. It is this area that determines the customers final impression and level of satisfaction before leaving the store, so delivering a positive retail experience at the checkout (scan and pay process in retail branches) is very important. In addition, the checkout generates crucial data, e.g., to control the logistics chain from the point of sale to reordering.
Our modular solutions portfolio has been designed to meet every possible requirement in the checkout process. Wincor Nixdorf offers automated systems to handle both self-service and cashier-operated scenarios in the checkout area, e.g., selfcheckout, specially designed for smaller shopping baskets, where customers scan and pay for the goods themselves at a self-service terminal. We have also developed solutions for mobile in-store shopping, whereby customers scan the products themselves and then pay at a cashier-operated or self-service checkout. This approach is particularly suited to customers with larger purchases. In the pilot phase is the 360 Scan Portal, a new automated scanning solution that speeds up the scanning process. This system makes it possible to scan all the items on the conveyor automatically without the cashier having to pick them up. The subsequent payment process can be integrated into the system or performed separately via a payment terminal. Each checkout scenario is covered by a uniform software platform, the TP Application Suite, which now includes an upgraded version of the self-service application TPiSCAN. The complete range of checkout functions in the store can now be called up not only in mobile form but also by a simple click at any self-checkout solution or payment point. This saves on space and costs and delivers a flexible and even better service to the customer. Thanks to the integration of components from our Cash Cycle Management Solutions portfolio, our checkout solutions can also be used to optimize cash processes. Wincor Nixdorf is the only provider to offer a uniform technology-based approach to the automation of cash handling in different checkout scenarios, in retailers cash offices, and at banks. One growing trend in the retail industry is mobile couponing. Customers who receive coupons on their mobile phones can redeem them at the checkout. In response, we have adapted and refined image scanner technology to identify and process the coupons, which are displayed on the mobile phone screen. Our versatile and modular BEETLE family is a hardware platform technology for checkout and other retail industry solutions, which we continuously optimize with regard to factors such as total cost of ownership (TCO) and Green IT in response to growing interest from retailers in solutions that avoid the use or production of toxic substances and reduce energy consumption.
Glossar: Dynamic Fraud Management, see page 144
Glossary: Self-checkout, see page 145
Glossary: (Application) Suite, see page 144
Glossary: Multichannel, see page 144
Glossary: Service-oriented Architecture, see page 145
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Solutions for Other Processes. Wincor Nixdorfs portfolio of retail industry solutions extends beyond the checkout area to encompass other branch processes, including kiosk solutions for customer information, electronic shelf labels for centralized price display, and reverse vending. Reve rse Vending. The complex nature of the reverse
Our Solutions Portfolio for Other Applications.
vending process throws up a number of issues. On the one hand, the systems need to ensure the greatest possible level of availability; on the other hand, given the increasing variety of drinks containers and the intricate methods of offsetting (including between retailers), transparency is also vital. In this area, Wincor Nixdorf offers numerous automated solutions that can process the return of single-use and multiple-use containers in the form of glass, PET, cans, and cartons. In response to consistently rising demand for materials such as PET, aluminum, and steel, there is growing interest in the recycling of these materials, with a view to selling them on at a profit. This creates new business opportunities for reverse vending machine operators, regardless of whether their countries have introduced statutory deposit return schemes.
A Central Software Platform for Global Branch Management. For global retail groups, standardized and
Glossary: Cash Management, see page 144
Improved security thanks to higher cash recycling rate at service stations
internationally available software platforms are a top priority as they provide the only way in which retailers can control all branch- and head office-related processes. Wincor Nixdorfs highly successful Retail Suite meets this demand. Since 2004, we have sold approximately 120,000 licenses, primarily to major international retail groups. This standardized solutions platform provides across-theboard support for all value-based processes within retail companies regardless of their size or business segment. Wincor Nixdorfs Retail Suite covers a wide spectrum of applications, from central control and management of the entire branch network through to solutions for different retail sales channels, and from various checkout scenarios through to out-of-store sales concepts, delivery services, and the integration of eCommerce solutions. Our TPCash module, just one element of our software portfolio, controls all cash processes within the branch. It ensures intuitive use, security, and transparency. Among the new functions developed by Wincor Nixdorf is an automatic balancing process that optimizes the readiness of cash recycling solutions in the checkout area for deposit and disbursement.
Our expertise also comes to the fore in other industries of the economy with a similar structure to that of banks and retailers. We help postal operators to restructure their branch networks by supplying automation solutions to manage their counter and self-service operations. The software components that make up our Postal Suite (ProClassic/Enterprise Postal Solution Suite) make business processes more efficient and deliver greater transparency throughout the network thanks to a range of branch applications and central management tools. We also help companies in the local and regional passenger transport sectors to implement multichannel strategies with solutions for the front and back office. Our solutions include systems for the ticket desk area, e.g., kiosk terminals, mobile payment systems, and mobile terminals for the train crew. Our dedicated Service Station Suite (NAMOS Application Suite) allows companies operating in this sector to control and monitor all their processes from the fuel pump and checkout to the back and head office. In order to save energy, Wincor Nixdorf has developed a centralized solution that can be implemented globally to monitor and optimize all the electronic systems and installations at the service station such as the lighting, water supply, and air-conditioning. In addition to these dedicated service station solutions, many petroleum companies also use our electronic checkout systems and outdoor payment terminals. So far, results from the cash management solution we implemented for one of the biggest international service station operators in Germany in fiscal 2009/2010 have been positive. The solution allows customers to withdraw cash at the service station using their EC card. The service has already been used by around 1.5 million customers to make 7.8 million transactions. There is a benefit to the service station, too, since the increased recycling rate extends cash removal intervals. At the same time, security is enhanced considerably.
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BUS I N E S S E N VI RONM E NT.

G l o bal Recove ry Followed by Uncertainty. The global economy experienced a gradual weakening over the last fiscal year. While 2010 seemed to mark the end of a two-year period of economic crisis with worldwide growth of 5.1%, expectations for 2011 were already less confident, with the high level of national debt in some European countries and the huge debt of the United States casting gloom over forecasts. In light of this uncertainty, in September the IMF downgraded its initial forecast of 4.3% for global growth in 2011 to 4.0%. In its September review, the IMF predicts growth of 2.7% for Germany in 2011, the highest figure among the leading seven industrial nations. By contrast, its forecast for the eurozone as a whole stands at 1.6%. It sees the main dangers as sovereign indebtedness in Greece, Ireland, Portugal, Spain, and Italy. The IMF believes that growth in Asia will remain strong. It expects the regions GDP to expand by a further 8.2% in 2011, with China (9.5%) and India (7.8%) leading the way. According to the IMFs forecast, the U.S. economy is set to grow by 1.5% in 2011. Consumer spending, which accounts for 70% of the countrys economic activity, has been hit primarily by efforts to reduce personal debt in conjunction with the ongoing real estate crisis and a high level of unemployment.
U n s ta bl e Curre n c y D e ve l o p m e n ts . At the beginning of the fiscal year, the euro stood at USD 1.37. Although it subsequently declined to USD 1.30 in December 2010, it then embarked on a continuous upward trend to reach a high for the year of USD 1.48 at the end of April. From this point onwards, in response to the debt crisis in some European countries, the euro proved more volatile and declined to USD 1.35 by the end of our fiscal year. Developments in the IT Market for Retail Banking and the Retail Industry. The main trends affecting business in our two target industries continued to influence developments in the year under review. For banks and retailers, investment in IT remains one of the most important levers when it comes to achieving greater efficiency. Only IT makes it possible to reduce costs and, at the same time, gain a competitive edge by offering new services. By expanding their branch and sales networks, banks and retailers are also able to participate in economic growth, especially in emerging markets, and to extend the range of their business activities by exploiting conventional and established sales channels.
I T S pendings Banking Industry.

2009 300 275 250 225 200 175 150 125 100 75 50 25 39 40 10 31 10 31 11 33 42 107 2010 2011
I T S p e n d i ngs R e ta i l I ndus try.

2009 150.0 137.5 2010 2011
239
104
241
103
248*
125.0 112.5 100.0 87.5 75.0 62.5 50.0 37.5 12 7 14 7 13 12 4 21 8 13 13 4 22 51
108
50
107
48
108*
9 43
10 46
9 50
25.0 12.5
4 20
Change total
+1%
+3%* * Forecast. Source: PAC, 20100
Change total
1%
+1%* * Forecast. Source: PAC, 2010
Hardware Hardware Maintenance Outsourcing Project Services Application Software Products Others
Hardware Hardware Maintenance Outsourcing Project Services Application Software Products Others
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According to the market research company Pierre Audoin Consultants (PAC), total IT investment in the banking and retail industries increases in 2011. In 2010, banks invested 241 billion and retailers 107 billion in IT (divided into business category: Hardware, Hardware Maintenance, Project Services, Outsourcing, Application Software Products and Others). The corresponding figures for 2011 are expected to rise by 2.8% for banks to just under 248 billion and by 0.7% for retailers to around 108 billion.
At the end of the first half-year, in response to these developments, Wincor Nixdorf took the decision to revise its forecast. The Company stated that it expected net sales for 2010/2011 to grow by 4%, with an operating profit at, or slightly above, the level of the previous fiscal year. These figures were subsequently achieved, thanks to a tremendous effort.
N e t Sa l e s . Revenue from Group net sales for fiscal 2010/ 2011 rose by 4% to 2,328 million (2009/2010: 2,239 million). Adjusted for currency fluctuations between the euro and the U.S. dollar, the increase was 3%. N e t S a l e s H i s to ry.
m 07/08 08/09 09/10 10/11
G RO U P BUS INE SS P E RF OR MA N C E. In the two fiscal years preceding the year under review, Wincor Nixdorf was able to limit the impact of the global economic crisis on the Company. Overall, net sales fell by just 3%, while our operating profit was down 21%. In November 2010 , based on evidence of economic recovery in October and November of that year and contrary to the original budget adopted in September, our aim had been to return to sustained growth in fiscal 2010/2011. Accordingly, we believed it was possible to increase our net sales and operating profit by 6% and 8% respectively. However, our forecast was always subject to a rapid recovery in our markets and was soon overshadowed as the unpredictable consequences of excessive government debt in some EU states began to unfold. It also became apparent that the recovery in our key markets was making only slow progress. In the end, the conditions that needed to be in place for us to achieve our original targets were neither consistent nor sufficiently robust. While retail banks and retailers did go ahead with delayed capital expenditure on new systems, many investments in larger-scale streamlining and automation projects proved to be less substantial than anticipated. This impacted on our high-end business, which accounts for a large part of our sales and delivers high profit margins. Other company-specific factors our performance in the Americas and the introduction of our new CINEO system family also meant that our high-end business in particular was unable to develop along the lines originally planned.
Fiscal year 2,500 06/07
2,319 2,145
2,250
2,239
2,328
2,000 1,500 1,000 500
+8%
3%
0%
+4%
R e g i ona l Pe rfo rm a n c e . Our performance in different
Europe generates highest net sales
geographical areas also largely reflects global economic trends, albeit with a few company-specific exceptions based on unusually strong business in the previous year. Total net sales in Germany, which had received a boost in the previous year from particularly large rollouts, fell by 5% to 612 million (2009/ 2010: 644 million). As a result, the countrys contribution to the overall Group figure stood at 27% (2009/2010: 29%). In Europe (excluding Germany), net sales were up 17% at 1,123 million (2009/2010: 959 million), although a number of countries, especially in southern Europe, continued to lag behind the general trend of strong growth. At 48% (2009/ 2010: 43%), Europe (excluding Germany) again accounted for the largest share of total Group sales in the year under review. Net sales in the Asia/Pacific/Africa region rose by 7% to 356 million (2009/2010: 332 million). As a result, the regions share of total Group sales remained at 15%.
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C h a nge s in Regional Sales Trend.

Fiscal year Total 2,500 06/07 07/08 08/09 09/10 10/11
2,319
2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 27% 25% 52%
2,145
8% 13%
8% 14% 53%
2,250
9% 16%
2,239
13% 15%
2,328
10% 15% 48%
In the Americas, net sales fell by 20% measured in U.S. dollars. When expressed in euros, the decline was 22% to 237 million (2009/2010: 304 million). In this region, Wincor Nixdorf was unable to pick up on the outstanding sales figures of the previous year, which were due to a number of major orders. The share of Group net sales generated by the Americas fell accordingly to 10% (2009/2010: 13%).
Performance by Business Stream. After a substantial downturn in the previous year, the Hardware business achieved a small increase in net sales in fiscal 2010/2011, although overall it remained below our original estimates at the start of the year. By contrast, the Software/Services business continued to perform well and delivered stronger growth in revenue. Revenue from the Hardware business rose by 2% to 1,159 million (2009/2010: 1,140 million). The Hardware business accounted for 50% of the Groups total net sales (2009/2010: 51%). Although results in the retail banking segment fell slightly short of the level recorded in the previous year, there was a marked increase in revenue from electronic point-of-sale (EPOS) systems for the retail industry. However, sales of high-end systems remained below expectations in both segments (see Segment Performance). The ongoing global rollout of CINEO, our innovative system family, continued throughout the reporting year, with the result that CINEO was still unable to contribute significantly to Hardware sales (see Segment Performance). Net sales in the Software/Services business ended the year 6% higher at 1,169 million (2009/2010: 1,099 million). Accordingly, the share of total Group net sales generated by Software/Services rose to 50% (2009/2010: 49%). The Software business was boosted by the continued development of different components in our Retail Banking and Retail Suites, as well as their equivalents for the postal and service station business. In the year under review, we also achieved positive results from the consistent expansion of our software-related services, such as Software Adaptation and Integration (Professional Services).
47%
43%
28%
29%
27%
+8%
3%
0%
+4%
Germany 750
572
500 250
588
627
644
612
+3%
+7%
+3%
5%
Europe 1,250 1,000 750 500 250
1,129
1,215 1,064 959
1,123
+8%
12%
10%
+17%
Asia/Pacic/Africa 500 250
277
329
359
332
356
+19%
+9%
8%
+7%
Americas 500 250
167
+12%
187
+7% Europe
200
+52% Germany
304
237
Change on previous year Americas
22%
Asia/Pacic/Africa
66
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Net Sales Split: Hardware and Software/Services.

Fiscal year Total 2,500 06/07 07/08 08/09 09/10 10/11
2,319
2,250 2,000 1,750 1,500 1,250 1,000 750 500 250 42% 42%
2,145
58%
2,250
54%
58%
2,239
51%
2,328
50%
46%
49%
50%
By expanding our network of partners, we were also able to offer our services in those countries where we do not have our own service organization. Managed Services delivered another very good performance, with significant increases in revenue from hardware-independent projects in areas such as cash management and cashless transaction processing. Increasingly, we are now able to offer our full range of Managed Services in Asia. In Outsourcing, we primarily maintained existing partnerships in Germany, the Netherlands, and the U.K., in some cases with the addition of new services.
C o s ts . Wincor Nixdorf successfully pursued its Group-wide
+8%
3%
0%
+4%
1,500 1,250 1,000 750 500 250
1,254
1,346 1,224 1,140 1,159
+7%
9%
7%
+2%
1,250 1,000 750 500 250
891
973
1,026
1,099
1,169
Change on previous year Software/Services
+9% Hardware
+5%
+7%
+6%
Glossary: Product Related Services, see page 145
As in previous years, there was renewed growth in Services, predominantly as a result of increased revenue from the Product Related Services business, which continues to account for the largest part of the Services business (see Segment Performance). Furthermore, the contracts we sign with our customers mostly run over several years and therefore deliver a steady source of revenue. We also widened our portfolio, helping us to strengthen our customer base.
programs for cost management ProImprove and ProFuture over the course of fiscal 2010/2011. The ProFuture program, which was completed as scheduled at the end of the year under review after a period spanning two years, included measures aimed at optimizing global processes. The focus of structural improvements implemented in line with this program was on functions associated with service, product deployment, and administration. As regards ProImprove, the emphasis was on reducing product costs. Covering a wide range of areas, this program is to be stepped up in the fiscal year 2011/2012 in the form of a continuous improvement initiative. Despite the above-mentioned programs, the gross margin on net sales contracted by 0.6 percentage points to 24.5% (2009/2010: 25.1%), primarily due to the effects of product mix and reduced economies of scale, as well as the persistent pressure exerted on prices. Research and Development costs declined by 1% or 1 million to 100 million in the reporting period (2009/2010: 101 million). Consequently, the R&D ratio was slightly down at 4.3% (2009/2010: 4.5%). The ratio of selling, general, and administration expenses to net sales improved by 0.2 percentage points, taking this figure to 13.2% (2009/2010: 13.4%). Selling, general, and administration expenses, including other operating income and expenses, stood at 308 million at the end of the reporting period (2009/2010: 299 million).
Pro f i t. At 162 million, operating profit (EBITA) was identical to the figure posted for fiscal 2009/2010. The EBITA margin contracted slightly by 0.2 percentage points to 7.0% (2009/ 2010: 7.2%).
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The financial result fell by 1 million to 7 million (2009/ 2010: 6 million) mainly due to an increase in average debt. Profit before income taxes was down by 1 million to 155 million (2009/2010: 156 million). The Groups effective tax rate fell to 30% (2009/2010: 32%) due to the fact that the various regions developed along different lines. Profit for fiscal 2010/2011 rose by 2% or 2 million to 108 million (2009/2010: 106 million). The return on net sales declined slightly to 4.6% (2009/2010: 4.7%).
E B I TA History.
Fiscal year 200 150 100 50 06/07 07/08 08/09 09/10 10/11 m
S EGM ENT PER FOR M A NC E. Both business segments contributed to the growth in Group net sales. While net sales in Banking only showed a small increase after a fall in the previous year, the Retail segment reported a substantial rise in the year under review. Correspondingly, the Banking segments share of total Group net sales declined to 66% (2009/2010: 67%), while the contribution of the Retail segment rose to 34% (2009/2010: 33%).
N e t Sa l e s Spl i t: B a n k i ng a n d Re ta i l .
Fiscal year 2,500 06/07 07/08 08/09 09/10 10/11 m
206 186 179 162 162
2,319 2,145
33% 37%
2,250
32%
2,239
33%
2,328
34%
2,000 1,500 1,000 500 63%
67%
68%
67%
66%
+11%
13%
9%
0% Change on previous year +8% Retail 3% 0% +4%
D i v i d e nd. Wincor Nixdorf remains committed to its exist-
Banking
ing dividend policy: as regards the dividend for fiscal 2010/ 2011, profit for the period in the amount of 108.3 million will again form the basis for dividend calculations. Of this amount, approx. 50% is to be distributed to shareholders in the form of a dividend. For the reporting period, a dividend of 1.70 per qualifying share will be proposed to the Supervisory Board, unchanged year-on-year. This corresponded to a total dividend payment of 50.6 million on the date on which this report was released by the Board of Directors. Based on the closing share price as of September 30, 2011, the dividend yield is 5.0%. The dividend will be paid out on January, 24, 2012, subject to the approval of the AGM. According to the German Stock Corporation Act, the distributable dividend is calculated on the basis of net retained profit, which is presented in the financial statements of Wincor Nixdorf AG prepared in accordance with the German Commercial Code. As of September 30, 2011, the net retained profit of Wincor Nixdorf AG was 198.3 million. The undistributed portion of net retained profit, equivalent to 147.7 million, will be carried forward to new account. In fiscal 2010/2011, a total of 53.1 million (1.70 per share) was distributed to the shareholders of Wincor Nixdorf AG.
B a n k i ng S e g m e n t.
Net sales in the Banking segment were 2% up on the previous year (2009/2010: 1,497 million) at 1,527 million. EBITA fell by 5% to 120 million (2009/2010: 126 million). The EBITA margin declined accordingly by 0.5 percentage points to 7.9% (2009/2010: 8.4%).
N e t Sa l e s a nd EBI TA H i s to ry : B a n k i ng.
Fiscal year 1,500 1,000 500 06/07 07/08 08/09 09/10 10/11 m
Proposed dividend 2010/2011: 1.70 per share
1,547 1,358
1,532
1,497
1,527
142
162
145
1% 10%
126
2% 13%
120
+2% 5%
Net Sales Change on previous year +14% EBITA Change on previous year EBITA margin EBITA Net Sales 10.5% +14% 10.5%
9.5%
8.4%
7.9%
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The list below summarizes the main developments in the Banking segment (including the Groups postal business see Our Solutions Portfolio) during the year under review.
Sy ste ms for the Self-service Sal e s C h a n n e l .
Pro fe s s i ona l S e rv i c e s . During the year under review, we expanded this portfolio of services around the globe, in part through the takeover of Madrid-based Dynasty Technology Group S.A. (see The Wincor Nixdorf Group). Pos ta l Bus i n e s s . We successfully adapted and marketed some of the components from our Banking Solutions portfolio to perform specific tasks in the postal industry. Thanks to its portfolio of specially adapted Professional Services, Wincor Nixdorf has now established itself as a provider of integrated solutions for postal banks. R e g i ona l Pe rform a nc e . The Banking business in Ger-
The Wincor Nixdorf Group, see page 54 et seq.
We pressed ahead with the ongoing global introduction of CINEO, our new system family from the completion of our portfolio to system certification and the first rollouts. We have now installed transaction terminals from the CINEO system series at numerous banks throughout the world.
Ca sh Cycle Management Solutio ns . In the fiscal year under review, we expanded our portfolio to include new consulting, software, and service components that can be combined depending on the target process. A number of consulting projects using a newly developed analytical tool have confirmed that our solutions concept can generate cost savings well in excess of 20%. Ba nk Branch Business. We again demonstrated our ability to take over entire branch sales and services restructuring projects. We were delighted to note that a well-known trade magazine awarded one of the branches redesigned by Wincor Nixdorf on the basis of the WIN@Branch portfolio its Office of the Year accolade. Retail Banking Suite. Our software for processing cash and non-cash transactions in the counter/checkout area and for self-service applications was successfully linked to the core banking application SAP Banking Services and certified by SAP. This means the software can now be integrated seamlessly and efficiently wherever SAP itself is used. Security. A new anti-skimming module that works with an optical recognition procedure to prevent the manipulation of cash systems attracted great interest throughout the market.
many was unable to sustain the positive results of the previous year, when the major banks in particular invested heavily in new systems and consequently spent less on self-service and automation technology in the year under review. Nevertheless, we generated a continuous stream of revenue from services and IT business management projects for major banks, and in the savings bank sector as well as from services provided to public-sector institutions and cooperative banks. Our Banking business in Europe (excluding Germany) showed a significant improvement, although it was noticeable that many retail banks, especially in Southern and Eastern Europe, were less inclined to invest. The trend towards process automation was maintained, above all in Western Europe. At the same time, we expanded our business in the area of Product Related and Managed Services, involving for example our taking over entire responsibility for equipping branches and managing their IT operations. Once again, East European retail banks failed to match previous levels of investment in IT. Despite this, we expanded our Services business significantly and have been very successful in Russia, where we have now established a leading market position with our own services organization only a few years after it was launched. Net sales remained buoyant in the Asia/Pacific/Africa region. Indian banks in particular showed an interest in the systems developed by Wincor Nixdorf specifically for this market. In addition, we won several Chinese banks as pilot customers for our new CINEO Cash Recycling systems. Overall, we made further headway in Asia with our Services business, especially in the area of Managed Services.
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In the Americas, we were unable to maintain the levels of the previous year, when business was largely driven by major orders for high-end solutions from North America, with a focus on the automated acceptance and processing of checks and cash. We achieved modest growth in Latin America, partly thanks to the expansion of our Services business. In Brazil, however, our biggest Latin American market, there was downward pressure on prices in the hardware business as a result of intensive competition.
Pe r formance by B usiness Stream. If we look at performance by Business Stream, Hardware sales fell slightly short of the level recorded in the previous year. To some extent, this was due to a fall in prices for cash systems, leading to a decline in revenue, even though demand remained firm. At the same time, the contribution by our highend business was less pronounced, partly because the previous years figures for Germany and the Americas had been so impressive and partly on account of a reluctance to invest in several south European countries. Our new CINEO systems made no significant contribution to overall business, although the focus in the reporting year was on delivering the up-front services linked to their global introduction, e.g., country-specific adaptations and certifications. We installed a number of systems for the first time on behalf of some of our strategically important customers in Europe and Asia, and then began the first rollouts. Non-cash Products such as transaction terminals and statement and receipt printers were in particular demand in Europe. In this region, we rapidly obtained certification for our CINEO systems and installed them in rollouts. Software/Services in the Banking Segment delivered a solid overall performance. The Software business was boosted by extensions to our portfolio. There was a substantial improvement in Services thanks in part to numerous contracts for Product Related Services in conjunction with contracts to supply new hardware. In addition, customers extended their maintenance agreements in line with the extended operational life of their existing hardware systems.
Managed Services again delivered very strong growth. For an increasing number of banks, Wincor Nixdorfs portfolio of Managed SST Solutions (see Our Solutions Portfolio) proved to be very attractive, not least in view of the greater pressure on costs. Many customers also extended their existing Product Related Services agreements into Managed Services contracts. There was a small increase in our Outsourcing business with banking customers. The services include network operation, IT infrastructures, software and license management, and helpdesks for specialist banking applications.
Strong growth in Managed Services
R e ta i l Se gm e nt.
Net sales in the Retail segment rose by a very encouraging 8% to 801million (2009/2010: 742 million). EBITA was up 17% at 42 million (2009/2010: 36 million). Accordingly, the EBITA margin went up by 0.3 percentage points to 5.2% (2009/2010: 4.9%).
N e t Sa l e s a nd EBI TA H i s to ry : R e ta i l .
Fiscal year 1,000 750 500 250 06/07 07/08 08/09 09/10 10/11 m
787
772
718
742
801
44
Net Sales Change on previous year 2% EBITA Change on previous year EBITA margin EBITA Net Sales 5.6% 0%
44
7%
34
+3% +6% 4.7% 23%
36
+8% +17% 4.9%
42
Glossary: Non-cashProducts, see page 144
5.7%
5.2%
The list below summarizes the main developments in the Retail segment (including our service station business) during the year under review.
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Electronic Point of Sale (EPOS). The main focus of our development work on EPOS systems was on technology optimization, e.g., new processors and new operating systems, partly in order to enhance performance. Above all, we achieved an improvement in the total cost of ownership and resource use of our systems. Automated Checkout. We extended the scope of our
automated checkout portfolio to include the 360 Scan Portal (see Our Solutions Portfolio).
Retail Cash Management. During the year under review, there was particular interest in cash office automation, and we began a number of successful projects on behalf of international retailers. With a view to exploiting the maximum potential for optimization, many retailers also aim to take a further step by automating cash handling processes in the front office. Software for the Retail Industry. We added a number of new applications to our software portfolio in the enterprise area, i.e., at head-office level. One of our new solutions allows retailers to plan and manage the deployment of personnel.
Regional Performance. The Retail business in Germany performed well, although results were below those of the previous year, which had been boosted by a particularly large order in the service station business. Europe (excluding Germany) made a substantial contribution to growth in the Retail segment. This was mainly due to strong business in the area of checkout systems and automated checkout solutions in France, the U.K., Turkey, and Eastern Europe. Retail sales in the Asia/Pacific/Africa region also increased, especially in key markets such as China and India, thus providing a firmer basis for the future. There was an encouraging level of growth in the Americas, albeit from a low base. Here, too, the main driver was our checkout systems business. Pe rfo rm a n c e by Bus i n e s s Stre a m . Of Wincor Nixdorfs business streams, it was Hardware that made the greatest contribution to sales growth in the Retail segment. During the year under review, deliveries of EPOS systems rose by a considerably higher margin than the market as a whole. Although these systems play a fundamental role in our retail operations, tough competition in this market puts tremendous pressure on prices and margins. In this context, our BEETLE platform strategy and ongoing product developments proved all the more valuable. As evidence that our long-term strategy is paying off, we are pleased to note that in 2010 we captured the number two spot worldwide with regard to the volume of deliveries (Source: RBR survey). By contrast, our high-end business was unable to match the level of the previous year. During the year under review, Wincor Nixdorf secured orders for several international projects in the kiosk area, and there was particular interest in a new terminal based on the CINEO family. As part of another international project in the area of system gastronomy, we began to rollout a customized terminal that greatly speeds up the order process for end-customers. Wincor Nixdorf also strengthened its international profile in the reverse vending business. We maintained a good market position in both Germany and Europe, although overall volumes remained below our expectations. We expect to drive future growth in part by breaking into markets in several countries without statutory reverse vending schemes and by exploiting the anticipated potential for sales in Germany and other North European countries.
Professional Services. In this area, we focused predominantly on the expansion of our consulting services (see Our Solutions Portfolio). Reve rse Vending. Development of the future modular
generation of products was close to completion at the end of the reporting period, and we plan to launch them in the next fiscal year. We also presented a new software component with added-value functions such as coupon issue, e.g., in order to strengthen customer loyalty.
Service Stations. We extended our service station
branch management portfolio to include a new Forecourt Controller component. Wincor Nixdorf develops its own, fully integrated solution in an area that we previously covered with partners. The interface controls and monitors forecourt devices such as the car wash and fuel pumps.
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The Software/Services business delivered renewed growth. Thanks to a further improvement in our Software business during the reporting year, we were able to strengthen our position as one of the worlds leading software providers for the retail industry. Sales here were boosted primarily by software projects with major international retailers, e.g., in Germany, Denmark, and Russia. We were particularly successful in the fashion sector but also managed to break into new areas, as shown by our first project for a German drinks retailer. Overall, we are pleased with the level of growth we achieved with consulting and integration services. Wincor Nixdorfs Services business also grew, led by Product Related Services for newly supplied EPOS and reverse vending systems as well as for our service station business, where we now provide solutions to enhance system availability. Managed Services for checkout and self-service systems also performed well, thanks mainly to New Store Opening projects in several Asian countries and to strong demand in this region for Managed Total Store solutions. In Asia, Russia, and elsewhere, we attracted new customers with our tried-and-tested service concepts for international retail chains wishing to expand their global branch network and provided IT infrastructure support for the opening of new branches. We also expanded our service in hardware-independent areas. In Italy, for example, we have now taken over the electronic processing of meal vouchers including complete settlement of cashless transactions.
PER FOR M A NC E, FINA NC IA L POS ITION, A ND AS S ETS.

Pe rform a nc e . In the fiscal year under review, the Groups profit for the period rose by 2% to 108 million (2009/2010: 106 million). R e c o n c i l i a ti on o f R e s u l t f ro m Bus i n e s s O p e ra ti o n s ( E B I TDA ) .
2010/2011
m 2009/2010
Profit for the period + Income taxes + Financial result (Finance costs Finance income) EBITA + Amortization/depreciation of tangible fixed assets and licenses + Write-down of reworkable service parts EBITDA
108 47 7 162 54 9 225
106 50 6 162 52 9 223
The Groups net sales ended fiscal 2010/2011 up 4% at 2,328 million (2009/2010: 2,239 million). Revenue for the Banking segment grew by 2%, while the Retail segment recorded an 8% rise. Once again this year, Wincor Nixdorfs aim was to improve its cost structure. To this end, we continue to implement our Group-wide ProImprove program, which forms the basis of efficient cost management. Despite these efforts, the gross margin on net sales fell by 0.6 percentage points to 24.5% (2009/2010: 25.1%) on account of mix effects, lower economies of scale, and sustained pressure on prices. Spending on research and development over the reporting period was down 1% at 100 million (2009/2010: 101 million). At 4.3%, the R&D ratio was slightly below the figure for the previous year (2009/2010: 4.5%). Thanks to strict cost management, the ratio of selling, general, and administration expenses to net sales remained almost unchanged at 13.2% (2009/2010: 13.4%). Selling, general, and administration expenses, including other operating income and expenses, rose by 9 million or 3% to 308 million (2009/ 2010: 299 million).
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EBITA was also unchanged on the previous year at 162 million. The EBITA margin fell by 0.2 percentage points to 7.0% (2009/2010: 7.2%). EBITDA was up 2 million, or 1%, to stand at 225 million (2009/2010: 223 million). The EBITDA margin fell accordingly by 0.3 percentage points to 9.7% (2009/2010: 10.0%).
Financial Position. Cash flow from operating activities fell by 6% year-on-year to 144 million in fiscal 2010/2011 (2009/2010: 154 million). EBITDA, a key determinant, rose slightly to 225 million (2009/2010: 223 million). At 5 million, the net amount of interest received and paid remained unchanged year-on-year (2009/2010: 5 million). By contrast, income tax payments fell to 37 million (2009/2010: 52 million), which resulted in a significant reduction in cash outflows. As was the case last year, the increase in working capital primarily as a result of higher receivables toward the end of the fiscal year to 263 million (2009/2010: 235 million) led to a cash outflow of 31 million (2009/2010: 33 million). Additionally, changes relating to other assets and the remaining other liabilities as well as accruals produced a cash outflow of 16 million (2009/2010: cash inflow of 20 million). Ca sh flow.
2010/2011 m 2009/2010
Net cash used in financing activities totaled 54 million (2009/2010: 116 million). In this context, the share repurchase programs were a key contributor in the fiscal year under review. The 2010 share repurchase program was concluded in October, and in the third quarter of the fiscal year the 2011 share repurchase program was carried out. In total, these programs resulted in a cash outflow of 89 million. In the previous fiscal year, the cash outflow for the repurchase of own shares (treasury shares) had amounted to 14 million. The net amount of loans taken out in fiscal 2010/2011 was 85 million. By contrast, fiscal 2009/2010 had seen net loan repayments of 37 million. The dividend payment of 53 million (2009/2010: 59 million) also resulted in an outflow of cash. In parallel, other financing activities produced a cash inflow of 3 million in fiscal 2010/2011 (2009/2010: cash outflow of 1 million). At 80 million (2009/2010: 91 million), free cash flow (cash flow from operating activities less capital expenditure on intangible assets, property, plant, and equipment, and reworkable service parts) was 11 million lower than a year ago. The cash flow movements outlined above led to an increase in net debt to 199 million as of September 30, 2011 (2009/ 2010: 134 million). At the end of the reporting period, Wincor Nixdorf had undrawn borrowing facilities of 187 million (2009/2010: 256 million).
R a ti n g . At present, Wincor Nixdorf does not have a rating from an external rating agency. In the past, due to our positive cash flow from operating activities and the credit lines available to us, we have not commissioned a rating process with a rating agency. According to the information we have received from a number of high-profile banks, our creditworthiness is classed as good. O ff - B a l a nc e She e t O bl i ga ti o n s a n d F in a n c ia l I ns tru m e n ts . The Wincor Nixdorf Group has future offbalance sheet obligations in relation to tenancies, lease agreements, long-term purchase contracts, and purchase commitments totaling 122 million (2009/2010: 125 million). There are no significant off-balance sheet financial instruments. For further details, please refer to the Risk Report.
EBITDA Cash flow from operating activities Cash flow from investment activities Cash flow from financing activities = Change in liquidity Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period
225 144 66 54 24 18 6
223 154 62 116 24 6 18
Risk Report, see page 88 et seq.
At 66 million, net cash used in investing activities remained largely unchanged year-on-year (2009/2010: 62 million). Cash outflow for investments in intangible assets and property, plant, and equipment amounted to 52 million, slightly down on last years figure (2009/2010: 53 million). The main focus of investments was on IT equipment, specialist tools, licenses, and outsourcing business. In fiscal 2010/2011, an additional 3 million was invested in the expansion of the Software and Professional Services business in Latin America by acquiring Dynasty Technology Group S.A., Madrid. By contrast, no cash outflows occurred during fiscal 2009/2010 with regard to acquisitions.
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A s s ets. Compared to the previous year, the balance sheet
total was up 3% or 36 million at 1,307 million (2009/2010: 1,271 million). On the assets side, this increase was almost entirely due to a rise in current receivables and other assets, while inventories were scaled back. On the liabilities side, equity and non-current financial liabilities declined in the period under review, whereas current financial liabilities increased significantly.
A s s ets.
Sept. 30, 2011 m Sept. 30, 2010
Assets Intangible assets Tangible assets and financial assets Non-current receivables and other assets Non-current assets Inventories Current receivables and other assets Cash and cash equivalents Current assets Total assets Equity and Liabilities Equity (incl. non-controlling interests) Pension accruals and other accruals Financial liabilities Other liabilities Non-current liabilities Other accruals Financial liabilities Trade payables Other current liabilities Current liabilities Total equity and liabilities 330 71 2 31 104 123 197 288 265 873 1,307 358 70 115 24 209 146 39 274 245 704 1,271 354 158 57 569 266 450 22 738 1,307 352 154 52 558 288 405 20 713 1,271
Intangible assets remained largely unchanged year-on-year, with a carrying amount of 354 million (2009/2010: 352 million). Amortization of commercial patents and licenses amounted to 11 million (2009/2010: 12 million), while investments in software, especially for outsourcing projects and the Companys own infrastructure, totaled 8 million (2009/2010: 5 million).
The carrying amount of property, plant, and equipment was down 2 million on the previous year at 151 million (2009/ 2010: 153 million). Capital expenditure on property, plant, and equipment amounted to 43 million (2009/2010: 47 million). The principal investments made in this area were in IT equipment and specialist tools. Depreciation in the year under review amounted to 43 million (2009/2010: 40 million). Compared to the previous year, the carrying amount of financial assets rose by 6 million to 7 million (2009/2010: 1 million), which was attributable almost entirely to the first-time inclusion of the ownership interest held in CI Tech on the basis of the equity method. The figure for non-current receivables and other assets increased slightly by 5 million to 57 million (2009/2010: 52 million), primarily due to the rise in reworkable service parts by 4 million to 25 million (2009/2010: 21 million). Inventories contracted by 22 million to 266 million compared to the previous year (2009/2010: 288 million). At the same time, current trade receivables were up 46 million to 387 million (2009/2010: 341 million). This was mainly attributable to a year-on-year expansion of business toward the end of the final quarter of the reporting period. Current bank deposits rose by 2 million to 22 million (2009/2010: 20 million), while current bank liabilities increased significantly by 158 million to 197 million (2009/ 2010: 38 million). This was due to changes in the way borrowings under the terms of the revolving facility were accounted for in the period under review. Due to the fact that their remaining life is less than twelve months, they are to be categorized as current. Borrowing from the revolving facility totaled 177 million (2009/2010: 112 million) at the end of the reporting period. This was attributable primarily to the purchase of additional treasury shares during the year under review, equivalent to 89 million. Under the terms of the revolving facility, the Wincor Nixdorf Group was granted a credit line of 350 million by a consortium of banks for a period of seven years up to August 2, 2012. Borrowings relating to this credit line are subject to interest based on EURIBOR plus a margin. The entire credit line is available until expiry of the agreement without any obligation to make principal repayments before that time. Wincor Nixdorf is currently conducting refinancing negotiations and anticipates that these will be successfully concluded by the end of 2011.
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Changes in Group Equity, see page 101
Equity, including non-controlling interests, fell by 28 million to 330 million (2009/2010: 358 million). The reduction attributable to the payment of dividends totaling 53 million (2009/2010: 59 million) as well as the change in treasury shares by 75 million (2009/2010: 14 million) contrasts primarily with an increase of 108 million in equity from profit for the period (2009/2010: 106 million). Equity movements are outlined in the table entitled Changes in Group Equity. Non-current financial liabilities fell by a substantial 113 million to 2 million (2009/2010: 115 million), mainly as a result of the above-mentioned changes to the presentation of the revolving facility. Current other accruals declined by 23 million to 123 million (2009/2010: 146 million). This was mainly the result of lower accruals for warranties, in view of the fact that expected future expense decreased due to the technical maturity associated with products delivered over the course of the reporting period. Additionally, business with high-end systems was less pronounced and revenue contributions from the CINEO System family were still insignificant in the year under review. From the present perspective, the recognized accruals sufficiently cover all of the Groups probable obligations. Compared to the previous year, other current liabilities rose by 20 million to 265 million (2009/2010: 245 million). This was attributable primarily to higher financial liabilities to related companies.
Ove ra ll Assessment of Current B u s i ne s s Si tua tion. The following overall assessment of the Groups busi-
cast for our operating result (EBITA) in 2011/2012. On account of a reduction in economies of scale, in particular, our future sales performance may in fact have a disproportionately large impact on EBITA. Other factors include mix effects (e.g., products and regions) as well as the cost of potential structural adjustments. In line with our estimate of net sales for fiscal 2011/2012, we believe a sharp downturn or a modest increase in profit compared to the last fiscal year are equally possible.
C A PITA L EX PEND ITUR ES. In the year under review, we maintained our capital expenditure almost at the level of the previous year. Investments were made to support expansion, streamlining, and improvements to productivity, innovation, and measures to enhance the quality of our hardware, software, and services.
Ca pi ta l Ex pe ndi tu re s H i s to ry.
Fiscal year 70 60 50 40 30 20 10 06/07 07/08 08/09 09/10 10/11 m
72 61 64 62 63
ness situation is based on the information available at the time this annual report was prepared. Estimates of future global economic growth are currently marked by a great deal of uncertainty. In light, above all, of Europes sovereign debt crisis and the resulting uncertainties, especially with regard to the regions banking market, Wincor Nixdorf is adopting a very cautious, wait-and-see approach towards the business environment in so far as it impacts on the Groups likely performance over the rest of fiscal 2011/2012. At present, given this uncertainty, it is impossible to deliver a reliable forecast containing specific figures. We believe that a small decrease in net sales or an increase slightly above the level of growth in 2010/2011 are both possible. Equally, given the prevailing uncertainty affecting our net sales performance in the fiscal year ahead, it is not possible at this point (late fall 2011) to produce a reliable fore-
+18%
11%
3%
+2%
In fiscal 2010/2011, we invested 63 million (2009/2010: 62 million) in total, primarily in the area of licenses and IT, specialist tools and production facilities, as well as in reworkable service parts. At 12 million (2009/2010: 15 million), expenditure on our Outsourcing business in Germany again formed one of the focal points of investment spending.
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D ISCLO S U R E S P URSUA NT TO S E C T I O N 315 (4 ) H GB A ND EX PLAN ATO RY NOT E S. As the parent company of the Wincor Nixdorf Group, Wincor Nixdorf AG utilizes an organized market as defined by Section 2 (7) Wertpapiererwerbs- und bernahmegesetz (WpG German Securities Acquisition and Takeover Act) through the Companys issued shares with voting rights and, therefore, reports pursuant to Section 315 (4) HGB.
C o m position of Subscribed Capital. As of September 30, 2011, the share capital of Wincor Nixdorf AG is 33,084,988.00, divided into 33,084,988 no-par-value shares (Stckaktien governed by German law). R e s t riction of Voting Rights or Transfer o f S h a re s. Each share is furnished with the same rights and
of the Articles of Association, the number of members of the Board of Directors is determined by the Supervisory Board, and it must consist of at least two members. The Articles of Association may only be amended by the AGM (Section 179 (1) Sentence 1 AktG). Pursuant to Section 13 of the Articles of Association, the Supervisory Board may only amend and decide on the wording of the Articles of Association. In accordance with Section 18 (1) of the Articles of Association, resolutions of the AGM may be passed by a simple majority of the votes cast in the absence of a mandatory provision of the law stipulating otherwise. In cases where the law requires a majority of the subscribed capital represented at the time of voting, a simple majority of the subscribed capital represented will suffice in the absence of a mandatory provision of the law stipulating otherwise.
Au thori z a ti o n of th e Boa rd o f D i re c tors to Buy B a ck S h a re s i n the C o m p a ny.
has one vote at the Annual General Meeting (AGM). The Board of Directors is not aware of any restrictions to the voting rights of individual shares. The Company's employee share ownership plans include time-related restrictions for a small number of shares, e.g., in the case of lock-up periods.
Direct or Indirect Equity Interests in Excess of 10% of Equity. The Company is not aware of any direct or
indirect equity interests that exceed 10% of the voting rights.

O w ners of Shares with Special Rights Confe rring Controlling Powers. The shares do not confer any special rights with controlling powers. C o n trol ove r Voting Rights in the Event tha t E m p loye es Hold a Share in Equity. There is no
such control over voting rights.

A p p o intme nt a nd Removal of the Board o f D i re ctors a nd Amendments to the Articles o f A s s o cia tion. Rules for the appointment and removal of
members of the Board of Directors are laid out in Sections 84 and 85 AktG, which stipulate that members of the Board of Directors shall be appointed by the Supervisory Board for a maximum period of five years. After each period of office, members may be reappointed or their period of office extended for a further maximum period of five years. According to Section 5
In the period from January 25, 2011, up to and including January 24, 2016, the Company is authorized to purchase the Companys own shares, with the consent of the Supervisory Board, up to a total of 10% of the current share capital at the time of the resolution or if this value is lower at the time of the exercising of this authorization. In doing so, the shares acquired due to this authorization together with other shares of the Company, which it has already acquired and still possesses or are assigned to it pursuant to Sections 71d, 71e of the German Stock Corporation Act (AktG), may not exceed 10% of the respective share capital at any time. The authorization can be exercised for any legally permissible purpose; however, the Company may not trade in its own shares. The Company may purchase the shares on the stock exchange or by means of a public offering extended to all shareholders. The shares may also be acquired by the Companys dependent companies within the meaning of Section 17 of the German Stock Corporation Act (AktG) or companies in which the Company is the majority shareholder within the meaning of Section 16 (1) of the German Stock Corporation Act (AktG) or, for its or their account, by third parties. In the event of acquisition via the stock exchange, the consideration paid by the Company for the acquisition of each share (without expenses incidental to the acquisition) shall not exceed or be below the share price by more than 10%. The applicable share price within the meaning
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of the foregoing provision in case of acquisition on the stock exchange shall be the price determined on the day of the trade in the opening auction of a share of the Company of the same class with the same rights in XETRA trading (or a system replacing XETRA) on the Frankfurt Stock Exchange. The Board of Directors is authorized to use the shares for all legally permissible purposes, in particular to sell them through the stock exchange or by making a public offering to all shareholders. The shareholders have no subscription right in the event of a sale through the stock exchange. In the event of a sale by means of public offering, the Board of Directors is authorized, with the consent of the Supervisory Board, to exclude subscription rights for the shareholders for residual amounts. The Board of Directors is further authorized, with the consent of the Supervisory Board, to effect a sale of the Companys acquired own shares in a manner other than through the stock exchange or by making a public offering to all shareholders, provided the acquired own shares are sold for cash for a price not substantially lower than the stock market price for Company shares of the same class with the same rights on the date of such sale. However, this authorization shall only apply under the condition that the shares so sold may not exceed an aggregate of 10% of the Companys share capital at the time of such resolution or if this is lower at the time of the exercising of this authorization. In calculating this 10% limit, an allowance shall be made for the issuance of shares after this authorization from authorized capital excluding subscription rights in accordance with Section 186 (3) Sentence 4 of the German Stock Corporation Act (AktG) and for the granting of option or conversion rights for Company shares after this authorization if the grant excludes subscription rights in accordance with Section 186 (3) Sentence 4 of the German Stock Corporation Act (AktG). The shares can also be purchased using put or call options or future purchase agreements (jointly: derivatives). The Company will be authorized to sell options to third parties, which obligates the Company to purchase shares of the Company upon exercising the option (put option), to purchase options that give the Company the right to purchase shares of the Company upon exercising the option (call option), and to purchase shares of the Company using a combination of put and call options. These respective option conditions must ensure that the Company is only provided shares that it has purchased while upholding the principle of equality in treatment (Section 53a of the German Stock Corporation Act [AktG]). All purchases of shares using derivatives are restricted to a maximum of 5%
of the existing share capital at the time of the resolution of the Annual General Meeting regarding this authorization or if this is lower at the time of exercising this authorization. The terms of the derivatives must end, at the latest, on January 24, 2016. Within this context, the term of an individual derivative may in each case not exceed 18 months. The option premiums paid by the Company for call options and received by the Company for put options may not be significantly higher and/or lower than the theoretical market value determined by recognized financial mathematical methods of the respective option; the agreed-upon exercise price is to be taken into consideration with this determination. The purchase price per share of the Company to be paid upon exercising the option and/or upon the due date of the future purchase agreements may not exceed the average price of the Companys shares of the same class with the same rights in the closing auction of XETRA trading (or a system replacing XETRA) on the Frankfurt Stock Exchange over the last three trading days prior to the day of the conclusion of the relevant option and/or future purchase agreement by more than 10%, or fall short of this by more than 20% (respectively without ancillary purchase costs, but taking the option premium received and/or paid into account). The option transactions must be concluded respectively with an independent bank or independent financial institution at conditions close to the market. Shareholders subscription rights with respect to the Companys own shares shall be excluded in the following cases: Where the Company uses its treasury shares under the terms of a business combination or the (direct or indirect) acquisition of equity holdings with the consent of the Supervisory Board; Where the treasury shares are used to fulfill obligations in relation to stock options under the Companys stock option programs; Where the treasury shares are used to fulfill conversion rights or obligations in relation to participatory certificates with warrants and/or convertible participatory certificates and/or convertible bonds and/or bonds with warrants and/or income bonds issued by the Company, or by the Companys dependent Group companies with the consent of the Supervisory Board.
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Au t horizations of the Board of Directors to I ssue Shares 1. Authorized Ca pital I 20 09 Pursuant to Se c t i o n 4 (5) of the Articles of Association: The
Board of Directors has been authorized to increase the Companys subscribed capital, with the Supervisory Boards approval, by up to 3,308,498.00 (in words: three million three hundred and eight thousand four hundred and ninety-eight euros) (Authorized Capital I 2009) through the issue for cash of new bearer shares under single or multiple initiatives up to April 18, 2014. Shareholders must be granted a right of subscription. However, subject to the consent of the Supervisory Board, the Board of Directors is authorized to exclude fractional amounts from a shareholders right of subscription. The Board of Directors is also entitled, subject to the consent of the Supervisory Board, to exclude shareholders subscription rights where the issue price does not lie significantly below the current stock market trading price. This authorization shall only apply subject to the condition that the total shares issued without shareholder subscription rights, in accordance with Section 186 (3) Sentence 4 AktG, may not exceed 10% of the subscribed capital at the time of the resolution. In calculating this 10% limit, an allowance shall be made for the grant of option or conversion rights for Company shares subsequent to this authorization, i.e., after January 19, 2009, if the grant excludes subscription rights, in accordance with Section 186 (3) Sentence 4 AktG, and for any sale of the Companys treasury shares excluding subscription rights, in accordance with Section 186 (3) Sentence 4 AktG. In addition, this authorization shall only apply subject to the condition that the proportion of shares issued since it was granted on January 19, 2009, whether based on this or other authorizations to issue shares in the Company without shareholder subscription rights pursuant to, or by virtue of, the application of Section 186 (3) of the German Stock Corporation Act (Aktiengesetz AktG), shall not exceed 20% of the Companys share capital on the date the resolution was adopted. The Board of Directors is also authorized, with the consent of the Supervisory Board, to determine the additional rights attaching to the shares and the terms and conditions of the share issue.
2 . Authorize d Capital II 20 09 Pursuant to Se c tion 4 (6) of the Articles of Association: The Board
thirty-three thousand nine hundred and ninety-six euros) (Authorized Capital II 2009) through the issue, for cash and/or non-cash contributions, of new bearer shares under single or multiple initiatives up to January 18, 2014. When issuing shares for non-cash contributions in connection with direct or indirect acquisitions of companies, parts of companies, or equity interests, the Board of Directors is authorized, with the consent of the Supervisory Board, to exclude shareholders subscription rights. However, this authorization shall only apply subject to the condition that the total shares issued without shareholder subscription rights do not exceed 20% of the Companys share capital at the time of the resolution. In calculating this 20% limit, the issue of shares from authorized capital without subscription rights pursuant to Section 186 (3) of the German Stock Corporation Act (Aktiengesetz AktG) subsequent to this authorization, i.e., after January 19, 2009, and the granting of option or conversion rights for Company shares if the grant excludes subscription rights, in accordance with Section 186 (3) Sentence 4 of the German Stock Corporation Act (Aktiengesetz AktG), as well as any sale of the Companys treasury shares excluding subscription rights, in accordance with Section 186 (3) Sentence 4 of the German Stock Corporation Act, shall be taken into account. Otherwise, the shareholders shall be granted subscription rights. However, the Board of Directors is authorized, with the consent of the Supervisory Board, to exclude fractional amounts from shareholders subscription rights. The Board of Directors is also authorized, with the consent of the Supervisory Board, to determine the additional rights attaching to the shares and the terms and conditions of the share issue.
3 . Conti nge n t Ca pi ta l I 2 010 Purs u a n t to Se c ti o n 4 ( 7 ) o f th e A rti c l e s of A s s o c i a ti on) : The share capital is conditionally increased by up to 1,654,249.00, divided into a maximum of 1,654,249 bearer shares (Contingent Capital I 2010). This contingent capital increase is to be used exclusively to cover stock options issued to members of the Companys Board of Directors, board members of subordinate associated companies within and outside of Germany and to other executives and employees of the Company and its subordinate associated companies as detailed in the provisions of the authorization resolved by the AGM on January 25, 2010. This shall only be implemented to the extent that these share options are taken up and the Company does not provide the consideration in cash or with its own shares. The new shares shall carry dividend rights from the beginning of the fiscal year
of Directors has also been authorized to increase the Companys share capital, with the Supervisory Boards approval, by up to 13,233,996.00 (in words: thirteen million two hundred and
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in which they are issued. Should the issue take place before the ordinary AGM, the new shares shall be entitled to dividends for the previous fiscal year as well.
4. Contingent Capital II Pursuant to Section 4 (8) of the Articles of Association : The share capital is conditionally increased by up to 10,000,000.00 (in words: ten million euros), divided into up to 10,000,000 bearer shares (Contingent Capital II). The contingent capital increase to create Contingent Capital II shall be carried out only insofar as the holders of option or conversion rights or the parties who have conversion/option obligations from participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds that are issued or guaranteed up to January 27, 2013, by the Company or a dependent Group company of the Company within the meaning of Section 17 German Stock Corporation Act (AktG), pursuant to the authorization adopted by the AGM on January 28, 2008, make use of their option or conversion rights or, if they have conversion/option obligations, fulfill their conversion/option obligation. The new shares shall be issued at the option or conversion price to be defined in accordance with the above authorization adopted. The new shares shall carry dividend rights from the beginning of the fiscal year in which they are issued pursuant to the exercise of option and conversion rights or fulfillment of option or conversion obligations. If they are issued before the ordinary AGM, the new shares shall be entitled to dividends for the previous fiscal year as well. The Board of Directors is authorized, with the consent of the Supervisory Board, to define the further details of the contingent capital increase. Authorization to Issue Participato ry C e rti f i cate s with Warrants and/or Conve rti b l e Pa rticipa tory Certificates, Bonds wi th Wa rra nts , Conve rtible Bonds and/or Incom e B o n d s a n d to Exclude Subscription Rights: The Board of Direc-
tors was authorized by the AGM on January 28, 2008, with the consent of the Supervisory Board, once or several times up to January 27, 2013,
to issue bearer participatory certificates (i) to which bearer participatory certificates with warrants are attached or (ii) that are attached to a conversion right for the holder for a maximum term of 20 years as of their issue, and to grant option rights to the holders of participatory certificates with warrants and conversion rights to the holders of convertible participatory certificates to bearer shares in the Company, as detailed by the conditions of the participatory certificates with warrants or convertible participatory certificates and instead of or in addition to issue bearer bonds with warrants and/or bearer convertible bonds and/or bearer income bonds (hereinafter referred to jointly as bonds with warrants and/or convertible bonds) with a maximum term of 20 years and to grant option rights to the holders of bonds with warrants and conversion rights to the holders of convertible bonds to bearer shares in the Company, as detailed by the conditions of the bonds with warrants or convertible bonds. The aggregate principal amount of the participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds to be issued under this authorization shall not exceed 500,000,000.00. Option rights or conversion rights shall only be issued for Company shares that account for a maximum total of 10,000,000.00 of the share capital. The participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/ or convertible bonds shall be offered for subscription to the shareholders. If participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds are issued by dependent Group companies of the Company within the meaning of Section 17 German Stock Corporation Act (AktG), the Company shall ensure that shareholders of the Company are granted the statutory subscription right in accordance with the above sentences. The Board of Directors is authorized, with the consent of the Supervisory Board, to exclude shareholders subscription rights in the following cases, each authorization having been granted independently of each other: with regard to fractional amounts and also insofar as exclusion is necessary so that holders of previously issued option or conversion rights can be granted a subscription right to new participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds to the extent to which they would be entitled after exercising the option or conversion rights as shareholders;
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if the issue price of the participatory certificates with warrants and/or convertible participatory certificates and/or convertible bonds and/or bonds with warrants is not significantly below the theoretical market value of the participatory certificates and/or bonds as determined by acknowledged mathematical methods used in finance; in this case, conversion and/ or option rights to shares of up to 10% of the share capital only shall be granted on the participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds issued with the exclusion of the subscription right of shareholders; in calculating the above maximum amount, allowance shall be made for all shares that are issued on the basis of other existing authorizations or authorizations adopted by this AGM to issue shares in the Company with the exclusion of the subscription right pursuant to, or in application mutatis mutandis of, Section 186 (3) Sentence 4 German Stock Corporation Act (AktG); or if and insofar as the participatory certificates with warrants and/or convertible participatory certificates and/or convertible bonds and/or bonds with warrants are issued in exchange for contributions in kind to acquire companies, parts of companies or equity interests (including an increase in the stake) or for carrying out a merger. Conversion and/or option rights to shares up to a total of 20% of the share capital only shall be granted on the participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds issued on the basis of one of the above authorizations with exclusion of the subscription right of shareholders; in calculating the above maximum amount, allowance shall be made for all shares that are issued on the basis of other existing authorizations or authorizations adopted by this AGM to issue shares in the Company with the exclusion of the subscription right pursuant to, or in application mutatis mutandis of, Section 186 (3) German Stock Corporation Act (AktG). Moreover, the above authorizations to decide on excluding the subscription right of shareholders shall not affect the authorization to issue the participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds with granting of a subscription right to shareholders or to a bank or a consortium of banks, linked to the obligation to offer them for subscription to shareholders.
If participatory certificates with warrants and/or bonds with warrants are issued, each participatory certificate or each bond shall have attached one or more warrants that authorize the holder to subscribe to bearer shares in the Company as detailed by the option conditions to be defined by the Board of Directors. For participatory certificates with warrants and/or bonds with warrants denominated in euros and issued by the Company or by dependent Group companies of the Company within the meaning of Section 17 German Stock Corporation Act (AktG), the option conditions can stipulate that the option price may also be settled by the transfer of participatory certificates or bonds and, if applicable, an additional cash payment. In this case, the pro rata amount of the share capital for shares to be subscribed to for each participatory certificate or bond shall not exceed the principal amount of the participatory certificate with warrants or bond with warrants. The price at which the shares are acquired shall correspond to at least 90% of the arithmetical mean of the closing prices of shares in the Company in XETRA trading (or a comparable successor) on the last five days of stock market trading before the resolution by the Board of Directors on defining the option price. If there are fractions of new shares, it is possible to stipulate that these factions can be added up in accordance with the option conditions, if applicable with an additional cash payment, so that full shares can be acquired. If convertible participatory certificates and/or convertible bonds are issued, the holders shall obtain the non-retractable right to convert the participatory certificates or bonds into bearer shares in the Company in accordance with the conversion conditions to be defined by the Board of Directors. The conversion ratio shall be derived by dividing the principal amount or the issue amount below the principal amount of a participatory certificate or bond by the set conversion price for a share in the Company and can be rounded up or down to a full number; furthermore, an additional cash payment and pooling of, or compensation for, fractions that cannot be converted can be defined. The conversion price shall correspond to at least 90% of the arithmetical mean of the closing prices of shares in the Company in Xetra trading (or a comparable successor) on the last five days of stock market trading before the resolution by the Board of Directors on defining the conversion price. The bond or option conditions can stipulate that the Company has the right not to grant new shares when the conversion or option right is exercised or the conversion or option obligation is fulfilled, but to pay a cash amount for the number of shares that would otherwise have to be provided that corre-
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sponds to the mean closing price of shares in the Company, not weighted by volume, in Xetra trading on the Frankfurt Stock Exchange (or a comparable successor) over the last ten days of stock market trading before notice of exercise of the conversion or option right or fulfillment of the conversion or option obligation is given. The conditions for participatory certificates with warrants and/or convertible participatory certificates and/ or bonds with warrants and/or convertible bonds can also stipulate that the participatory certificates with warrants and/or convertible participatory certificates or bonds with warrants or convertible bonds can, at the discretion of the Company, be converted to existing shares instead of new shares of the Company from Contingent Capital or that the option right or option obligation can be fulfilled by providing such shares. The conditions for participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds may also provide for a conversion or option obligation at the end of the term or at another time or give the Company the right, upon final maturity of the participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/ or convertible bonds, to grant the participatory certificate and/ or bond creditors shares in the Company in full or in part instead of payment of the due cash amount. In the latter case, the option or conversion price can correspond to the mean price of the Companys shares, not weighted by volume, in the closing auction in electronic trading on the Frankfurt Stock Exchange over the last five days of stock market trading before the final maturity date, as detailed by the conditions for participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds. Section 9 (1) in conjunction with Section 199 (2) German Stock Corporation Act (AktG) shall be observed. The interest on the participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds may be variable. In addition, it can be dependent on key profit ratios of the Company and/or the Group (including the net income or the dividend for Company shares set by the resolution on appropriation of the net income). In this case, the participatory certificates and/or bonds must not be assigned a conversion and/or option right. Moreover, a subsequent payment for benefits/payments not provided in previous years can be specified.
The Board of Directors was authorized, with the consent of the Supervisory Board, to define further details relating to the issue and rights of the participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds, in particular the rate of interest, issue price, term and denomination, the option or conversion period, and the option and conversion price or in agreement with the boards of the associated company of the Company that issues the participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds.
Significant Agreements in the Event of a Takeove r O ffe r. Wincor Nixdorf AG has not entered into any
significant agreements, which are contingent on a change of control of the Company following a takeover offer. The sole exception is a credit agreement between Wincor Nixdorf AG, together with its subsidiary Wincor Nixdorf International GmbH, and WestLB, together with other participating banks. The agreement provides for a revolving facility and expires on August 2, 2012. The participating banks are entitled to revoke their agreement to provide credit in the event that over 50% of the shares in Wincor Nixdorf AG are held directly or indirectly by one person, or a group of persons acting jointly, as defined by Section 2 (5) of the WpG (Securities Trading and Takeover Act). The banks are also entitled to cancel the agreement if this person or group of persons can determine over half of the members of the Board of Directors or of the shareholders representatives on the Supervisory Board, or if Wincor Nixdorf AG is included in the Group financial statements of this person or group of persons.
C o m p e n s a ti o n Agre e m e n ts be twe e n W in c o r N i x dorf AG a nd th e M e m b e rs of the B o a rd o f D i re c tors a s we l l a s E m p l oye e s i n th e E ve n t of a Ta ke ove r O ffe r. There are currently no agreements
between Wincor Nixdorf AG and members of the Board of Directors or employees for the payment of compensation in the event of a takeover offer.
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NON- FI N AN C I AL IND ICATORS.

R e s earch and Development Creating Added Va l u e through Innovation.
Wincor Nixdorfs objective in the field of Research and Development is to provide customers with a competitive advantage through innovative products and solutions. Consequently, in fiscal 2010/2011 we continued to make substantial investments in this area and therefore ultimately in the future of our business. Spending on Research and Development was down slightly by 1% to 100 million (2009/2010: 101 million). The R&D ratio fell 0.2 percentage points to 4.3% (2009/2010: 4.5%). By the end of the fiscal year, the R&D headcount had dropped to 785 (2009/2010: 882), primarily due to changes in the scope of consolidation.
History of R&D Expenses plus Embedded R&D Ratio in % of Net Sales.
Fiscal year 120 100 80 60 06/07 07/08 08/09 09/10 10/11
Foc us o f R & D Ac ti v i ti e s . Wincor Nixdorfs activities in the field of R&D are concentrated in three main areas: Further development of convergent platform technologies for our core business in retail banking, the retail industry, and related areas of business. Software as the key to optimizing the overall branch process chains of retail banks and retailers. Continuous improvement to our solutions regarding their total costs during the product life cycle (TCO), in conjunction with the optimization of serviceability. Ca s h Cyc l e M a na ge m e n t Sol u ti o n s wi th I d e n ti c a l Ba s e Te chnol o gy. With the launch of the CINEO
97
105
103
101
100
4.5%
40 20
4.5%
4.6%
4.5%
4.3%
+8%
2%
2%
1%
The Research and Development network mainly is composed of sites in Germany, Austria, Brazil, Singapore, and China. In total, 78 new patent applications were filed during the fiscal year under review (2009/2010: 88). The overall number of active patent rights was 1,159 (2009/2010: 1,138).
System Family, we equipped ATMs, automated teller safes, and self-checkout systems with our cash recycling technology: after being checked for authenticity, cash deposits are made available for withdrawal again. During the year under review, another main focus of our development efforts was on further refining our new solutions portfolio for Cash Cycle Management. At the beginning of the year under review, a development center for coin processing was established in Linz, Austria. The new center is responsible for developing system components for the automated acceptance and processing of coins. In taking this route, we have extended our technology base, which until now specialized in processing banknotes. We also developed a self-checkout system for smaller retail stores with no dedicated cash office, whereby banknotes are placed in cash cassettes. We have improved our expertise in the area of image recognition for both of our target industries and translated this know-how into practical applications for example a solution enabling the automatic scanning of products at checkouts (see Our Solutions Portfolio). We also draw on our expertise in the field of image recognition to prevent the attempted manipulation of ATMs or reverse vending systems. Another application in which image recognition plays an important role is for the acceptance of cash and checks by our Cash/Check Deposit Modules (CCDM). During the year under review, we further improved these modules with regard to both processing speed and quality.
78 new patent applications
Glossary: CCDM, see page 144
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Glossary: Point-of-sale Systems, see page 145
Expansion of Software Portfolio. In the period under review, we added new applications to the Retail Banking Suite, particularly for cashless payments. Among the new components is one that processes card transactions at ATMs or POS terminals even more securely than previously possible. The NFC standard, which allows payments by mobile communication devices for example, has also been integrated into this solution. The development of new, intelligent interfaces simplifies user prompting at self-service systems; their design is similar to that known from modern Internet or smart phone interfaces. In the year under review, we also added new applications to the Retail Suite, our software portfolio for the retail industry, such as a solution for planning and managing the deployment of staff. Furthermore, we developed a software package that is specifically tailored to the needs of smaller retailers. Low TCO Through Forward-looki n g D e ve l opment. When developing our products and solutions, we make
Purch a s i ng, Pro d u c ti o n , a n d L ogi s ti c s : Ex pl o i ti ng Sy n e rgi e s for G re a te r Pro d u c t iv it y a n d L owe r C o s ts .
CINEO delivers signicant cut in TCO
Glossar: Serviceability, see page 145
Glossary: Talking Devices, see page 145
sure that the costs incurred remain as low as possible, from the selection of components, through production and operations, to waste disposal. With the CINEO System family, we have achieved our objective of a considerably reduced total cost of ownership (TCO). In line with serviceability requirements, we have had the foresight to align hardware, software, and service processes with each other. The systems, featuring integrating Talking Devices, are capable of automatically transmitting a variety of information to the eServices platform, thus allowing preventive maintenance and the shortest possible recovery times (see also Our Solutions Portfolio). Our customers are able to access and evaluate this wealth of information via a mobile Web-based application called eServices Portal Management Dashboard. Banks and retailers are thus provided with a consolidated graphics-based summary of system, service, and cash data in real time.
Contin uous Expansion of Security Sol u ti o n s Portfolio. To prevent criminals from gaining access to
Further improvements in lean production as global standard
banknotes, we have developed a process for our new note storage units that sprays the banknotes with indelible ink in the event of unauthorized withdrawal or vibration, and renders them unusable. We have also developed next-generation technologies, which can identify cases of attempted fraud at selfservice systems.
Our focus in the period under review was on streamlining costs, optimizing organizational processes, and safeguarding the procurement of critical components. As regards the Purchasing and procurement of products and services, emphasis continued to be placed on finding the best possible balance between low prices and superior quality. During the reporting period, we further improved cooperation between Asia and Europe in raw materials purchasing, thus achieving additional synergies. We have also continued to refine procurement processes relating to non-production materials, the focus being on coordinating pan-European demand and appointing dedicated category managers. At the same time, we remain committed to pooling our purchasing requirements with key suppliers to the largest extent possible. We implemented targeted measures to mitigate the negative effects of the events in Japan on global industrial supply networks and of the recent surge in commodity prices. These measures included expanding the use of alternative materials and suppliers as well as intensified negotiations with other suppliers, a move that has allowed us to minimize or even avoid price increases. Continued sluggish demand for our hardware in the banking sector also called for an appropriate response in the area of Production and Logistics. Our focus at production level was on flexibility and rapid adjustment of manufacturing capacities to deal with fluctuations in demand. The productivity of our global manufacturing network has continued to grow as we develop decentralized production facilities located in close proximity to our customers. In the period under review, the Asian market was again largely supplied from our production sites in Singapore and Shanghai. With the help of an international team of experts, we analyzed and further optimized logistics and production processes at all locations, with lean production as the specified goal. The success of this effort can be measured in significantly lower process costs combined with higher process quality. We also introduced process-based HR indicators to enable international benchmarking across the Wincor Nixdorf production network and respond even more promptly to changing market conditions.
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Q u a lity: More Reliable Products, B e tter Satisfied Customers.
antee optimal availability and reliability of self-service systems, as well as information and communications solutions. The relevant processes are aligned to ISO 20000.
Our claim: The quality of our hardware and software products is evident, first and foremost, in their outstanding reliability and stability. High availability and superior reliability are the key to best-in-class operational performance and thus maximum reliability for end-users. For this reason, continuous improvement is Wincor Nixdorf's commitment to the future not only to our own but to that of our customers as well. We are consistently driven by the desire to further optimize the reliability of our hardware and to make our systems ever-more failure-resistant. Irrespective of whether we are developing new solutions or refining existing ones, our efforts are always guided by the latest technology and this also applies to individual components and modules. In addition, our production processes are always founded on the latest know-how, as are the procedures implemented by our suppliers and partners. Whenever necessary, we will update to the latest standards any systems already installed by our customers. In the software area, application stability is crucial for system reliability. Thus, our development processes are designed specifically to anticipate possible difficulties relating to on-site implementation. Furthermore, we test all software in an environment that corresponds fully to existing customer infrastructures before installing and integrating any applications. After installation, we support our customers in the long term to assure trouble-free operation. We also provide integration and customization services for our solutions, contributing to optimal availability in the customers IT environment. These Professional Services are aimed at raising the effectiveness, security, and dependability of ITbased procedures for our customers. System availability is maintained at the highest level by means of service processes that conform to standards implemented throughout our global structures. With the assistance of the eServices platform developed by Wincor Nixdorf, we are able to recognize potential faults in advance and keep them at bay (preventive maintenance), or we can rectify them remotely. Should a system fail despite all these efforts, highly qualified technicians solve the problem without delay. Benefiting from premium-quality solutions, we are also able to assume full responsibility for the operation of customers clearly defined IT infrastructure and business processes. Drawing on the strengths of innovative technologies, we guar-
E m p l oye e s : Fo s te ri ng, Cha l l e ngi n g , a n d E n ga gi n g th e Wo rk fo rc e .
Companies are shaped by people. It is they who push forward developments, create innovations, help to define markets, and, last but not least, sculpt the corporate image experienced by customers, business partners, and the wider public around the globe. It is their commitment and creativity that ultimately make the difference in the face of international competition, day by day, in more than 40 countries worldwide. This conviction is the driving force behind all our HR activities. This is why our workforce is the most important component for the Companys long-term success: We are well aware that the performance, skills, and dedication of our employees are of fundamental importance in our endeavors to consolidate and build on our leading positions. Therefore, one of our key tasks is to develop and implement specific programs and measures fostering a corporate culture based on values such as commitment, creativity, knowledge, and team spirit. At the same time, it is important to equip the Company and its employees to meet the business challenges of the future.
R e wa rd i ng G ood Pe rform a nc e . Good performance deserves recognition. And recognition motivates. This is why, for a large proportion of our workforce, our pay systems include variable components based primarily on the Companys economic success and the results achieved in individual areas. This long-standing element of our remuneration policy, which allows employees to share in our success, is a way of boosting the commitment of our workforce and encouraging employees to identify with the Company. Furthermore, in order to motivate our employees to perform to the highest standards over the long term, and as a way of assessing their performance in a fair and appropriate way, we have introduced additional performance management tools.
We pride ourselves on outstanding reliability and stability
Pay based on performance for much of the workforce
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Headcount. As of September 30, 2011, Wincor Nixdorf employed 9,171 people worldwide, 138 fewer than in the previous year (2009/2010: 9,309). Deve lopment of Headcount.
Fiscal year 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 06/07 07/08 08/09 09/10 10/11
learning organization. Around the globe, we are expanding our range of training courses and aim to ensure that best practice is shared by the entire workforce. At the heart of these measures are seminars and workshops for technical, managerial, and sales staff, as well as product training.
Training the Next Generation. At Wincor Nixdorf we
9,460 8,379
9,381
9,309
9,171
+13%
1%
1%
1%
In total, the headcount outside Germany was down slightly at 5,186 (2009/2010: 5,203). In Germany the workforce stood at 3,985, also down on the previous years figure (2009/2010: 4,106).
People with Spirit: Developing Leadership, Encoura ging Talent, Equipping the Ne x t G e n e ra tion. We can only create excellent products and solutions if we have an excellent team and this does not come about without some effort. This is why the recruitment and development of personnel to meet our strategic requirements is of crucial importance to Wincor Nixdorf. During the period under review, for example, we expanded our local and Group-wide staff development programs. By doing so, we aim to cover our long-term requirements for qualified technical and managerial staff in line with the Companys aims. Our approach emphasizes the promotion of employees from within our own ranks. By offering them targeted professional development, we are contributing significantly to the success and future prosperity of our Company. These staff development measures are geared towards employees at all levels of the organization. Our investment in HR planning also includes measures to systematically identify future leaders and strengthen the Groups project management culture. We see ourselves as a
have a long tradition of training young people. We see this partly as a way of exercising responsibility towards society as a whole. Our proactive approach to HR is a way of safeguarding our own future while offering prospects to young people, and this is also the principle that drives our wide-ranging activities in this area. One of the consequences of demographic change is a growing shortage of skilled staff, particularly in technical occupations. This is one of the reasons why we conduct our own training in a large number of disciplines and provide grants to students on selected courses. We equip our apprentices and students with precisely those skills needed in the future in companies with global operations by focusing on specific areas and practical training in line with our requirements. To achieve this, we work closely with universities and colleges. In fact, we were able to continually expand our partnerships with these institutions in the year under review. We offer placements and internships to students in a large number of disciplines, so they can experience what we do at first hand while enabling us to get to know one another. On the one hand, this allows young people to access career opportunities in a global enterprise. On the other, it enables us to establish these mutually beneficial contacts at an early stage in order to position ourselves as an attractive employer in the competition for highly qualified graduates.
Fostering Talent. Changing markets, increasing globalization, and ever-greater competition mean that we have to take a proactive approach to finding qualified people to take on key functions in the Company. The best place to begin in the search for, and development of, these future key players is within our own ranks and from our own pool of talent. This is why Wincor Nixdorf was quick off the mark when it came to establishing an international program aimed at systematically identifying talented individuals throughout the Group and preparing them for future roles. At the same time, we have made ongoing improvements to our processes for selecting and developing talented individuals for international positions.
Identifying and developing in-house talent across the Group
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Our international talent pools are designed to identify those individuals with particular potential for professional development. This annual process begins with an assessment center also attended by members of our top management, sending a clear signal about the importance we attach to promoting talented people. And we rank well in international comparisons: a survey of the talent management programs of 122 companies, carried out by the University of Innsbruck and Transformation Management AG, rated Wincor Nixdorfs program among the front runners.
C u l t ivating the Next Generation. Wincor Nixdorf
why our in-house managerial training is a key element of personnel development. Managers are taught how to develop a motivational leadership style and deal confidently with the process of change. They are thus expected to foster initiative and commitment among employees and encourage personal creativity and an entrepreneurial approach. As part of this ongoing process, employees at Wincor Nixdorf are encouraged to actively shape their areas of responsibility as People with Spirit.
Strengthening Project Management Expertise.
is taking a proactive approach to its future staffing needs and has therefore adopted a system of strategic succession planning. Potential candidates are identified and systematically prepared for possible roles within the organization. This is not just a question of finding a candidate to fill a certain position, but of identifying and supporting at an early stage those employees exhibiting the commitment, creativity, and personal skills that will allow them to take on new areas of responsibility in the future.
D e ve loping L eadership. Our managerial staff are key multipliers within the company, acting both as models and drivers of a positive, performance-led corporate culture. As such, they exert the greatest influence on the immediate working environment of their colleagues. One of their main roles is to create a highly motivating environment in which employees will give of their best and be able to develop their skills. This is
In order to meet the requirements of complex projects with an international dimension, we have stepped up our training program in the area of project management and have set up new training concepts for project managers. By establishing project management offices worldwide, we have made further progress towards our goal of creating an international project management community. At the same time, we have introduced an internal certification process for project managers as a means of standardizing requirements in terms of theoretical knowledge, practical experience, and personal skills.
Promoting Systematic Learning. Knowledge quickly becomes obsolete. To make sure that our personnel are equipped with up-to-date knowledge and can draw on all the necessary skills required, we favor goal-driven forms of learning such as e-learning and blended learning, i.e., an integrated learning process combining the best elements of classroom-based activities and e-learning. This allows our staff to actively acquire
Promoting staff who display commitment, creativity and personality
D e velopme nt of Headcount by Regions.

Fiscal year 10,000 9,000 8,000 7,000 6,000 06/07 07/08 08/09 09/10 10/11
D e ve l opm e nt of H e a d c o u n t by Func ti ons .

Fiscal year 10,000 06/07 07/08 08/09 09/10 10/11
567 374 1,661 2,845 2,534 1,852
662 1,679
925 1,600
829 1,734 2,623
9,000 8,000 7,000
287 843 3,054
303 945 3,676
300 956 3,783
324 882 3,834
316 785 3,688
2,852
2,678
6,000 5,000 4,000
5,000 4,000 3,000 2,000 1,000
2,611 2,316
2,665 2,608 2,729
3,810
4,196
4,188
4,106
3,985
3,000 2,000 1,000
1,879
1,925
1,677
1,661
1,653
Germany
Europe
Asia/Pacic/Africa
Americas
Production
Sales
Services
R&D
Administration
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Global learning management system introduced
those skills that they need. We were able to manage and monitor learning processes even more effectively during the year under review by introducing a worldwide Learning Management System.
Multiplying Knowledge. To best prepare our employees for their future roles, we also encourage them to share their knowledge and experience across borders. Colleagues from different countries meet in virtual team rooms, where they hold joint conferences and training courses and exchange knowledge and information in a fast and efficient way. In addition, our well-established and proven system for inviting suggestions from the workforce acts as a channel for creative ideas that can subsequently be implemented for the benefit of the entire organization. Indeed, creative employees make an essential contribution to our capacity for innovation. Innovative ideas and proposals help to enhance quality and thus boost our competitiveness.
livery, plus return and recycling. As early as the planning and development stage, we strive to use components that combine low environmental impact with energy efficiency. Through the selection of low-energy components in conjunction with improved software, we are able to respond to the demands of our customers for enhanced performance with minimum use of resources. In helping our customers to significantly cut energy consumption and operating costs, we are also supporting their efforts to achieve economic and environmental targets.
Exc e e d i ng I nte rna ti ona l Sta n d a rd s . All Wincor Nixdorfs products are designed in line with international regulations, including those for promoting the development of recycling-friendly products with low environmental impact (EC WEEE directive), for lowering energy consumption (EC EuP directive), and for restricting the use of hazardous substances (EC RoHS, REACH directives). During the year under review, a project group was responsible for continuing the implementation of measures initiated by Wincor Nixdorf as early as fiscal 2006/2007 in order to comply with REACH, the European Community Regulation on the Registration, Evaluation, Authorization, and Restriction of Chemicals (1907/2006/EC). As ever, Wincor Nixdorf strives to exceed the standards set by the legislator. We also expect our suppliers to consistently observe environmental standards, and we monitor their compliance by carrying out regular audits. Our partners must adhere to the Wincor Nixdorf code of conduct for suppliers, which includes the implementation of an ISO 14001-certified environmental management system. Indeed, our own production sites making up our international network Paderborn, Ilmenau, Singapore, and Shanghai have implemented environmental management systems that are ISO 14001-certified. By using modern technology, we can save energy, materials, and water, thereby avoiding emissions, waste, and water contamination. Furthermore, as a participant in the European Union Emissions Trading System, Wincor Nixdorf is demonstrating its unstinting commitment to lowering the emission of greenhouse gases. The creation of a highly efficient and environmentally friendly combined heat and power plant in Paderborn is just one example of our endeavors in this area, one that is rewarded by the option to sell unused CO2 allowances on the market.
Doing Business the Sustainable Way.
Partners expected to comply with Wincor Nixdorf Code of Conduct for suppliers
Wincor Nixdorf takes corporate responsibility seriously and is committed to achieving a balance between economic, environmental, and social objectives. We believe that a sustainable approach to business activities is a precondition for success, and so this philosophy pervades the entire organization. But sustainability is just as much about our social responsibilities and as already described the way we support and develop employees as it is about making careful use of natural resources. As a global IT provider, we design solutions that have a minimal impact on our environment, while using resources with maximum efficiency. These solutions are manufactured to extremely high standards with regard to economic and environmental sustainability. Ultimately, we recognize the importance of taking the long-term view when implementing our sustainability strategy.
Conserving Natural Resources from the Outset.
TCO analysis across the entire product life-cycle
When assessing the resource impact of its activities, Wincor Nixdorf follows the end-to-end principle, using TCO analysis to determine the costs of a system over its whole life cycle. This encompasses product planning, development, production, and logistics, as well as the costs generated during its use by the customer, including support, maintenance, and spare parts de-
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R e d ucing Environmental Impact with Cash Management. Cash management is another way in which
Cons e rv i ng R e s o u rc e s w i th Re ve rs e Ve ndi n g S o l uti ons . Since 2001, we have been committed to the re-
we cut our CO2 emissions by reducing the number of cash-intransit (CiT) journeys required. One of the solutions we apply in this field is the cash management application from our Retail Banking Suite, which allows us to determine precise refill intervals and quantities for ATMs and automated teller safes.
R e d ucing Ene rgy Consumption. One of Wincor Nixdorfs top priorities when it comes to developing and introducing cutting-edge hardware technology for banks and retailers is to reduce energy consumption. Our new generation of CINEO systems uses considerably less energy than its predecessors. In addition, our device management programs are designed to ensure that bank self-service systems can be switched on and off as necessary during quiet periods or at locations with restricted hours. Wincor Nixdorf develops and refines its programs on a continuous basis in response to market and customer demand. In the retail industry, our BEETLE checkout systems are fitted with an energy-saving processor and energy-efficient power supply to help reduce electricity costs. The intelligent power management system matches energy consumption to actual requirements with a number of operating modes. Wincor Nixdorf offers its own Green IT software for the centralized control and monitoring of energy consumption and the operation of convenience stores. For some of our customers, we operate and maintain entire data centers. These are based on advanced technology in order to optimize customer utility as well as reduce costs. One such example is the virtualization of server resources. This involves intelligent management systems that make the necessary hardware available as and when it is required, thus making it possible to divide or combine computer processing power to meet current requirements. As well as significantly reducing hardware needs, this can produce considerable savings in the energy used by both computers and air-conditioning in the data centers.
use and recycling of all manufactured products and materials. To this end, our reverse vending solutions for the return of empty containers are equipped with the necessary identification and process technology. Each year, some 81 million tons of packaging waste is created in Europe alone. Beverage containers, including PET bottles together weighing around three million tons, account for a fifth of this waste. Only half of these PET bottles enter the recycling process.
Com m i tm e nt to E nv i ronm e nta l P rote c ti on I nc l u d i ng th i s A nnua l R e p o rt. As in the preceding
Reducing energy consumption with cutting-edge hardware technology for banks and retailers
year, this Annual Report was printed on FSC*-certified paper and with a neutral effect on the climate. By using petroleumfree colored inks and abandoning the use of industrial alcohol (IPA) in the printing process, we are able to avoid or reduce any environmental damage.
Com m uni c a ti o n : I nform i n g th e Publ i c , I ns pi ri ng C o n f i d e n c e .
While excellent products and services are a fundamental prerequisite for market success, the way a company is perceived by the wider public is also an influential factor. Against this backdrop, Wincor Nixdorf believes it is important to inform the public and create transparency. At the same time, we endeavor to pass on knowledge and inspire confidence in our products and services. At national and international level, and in close cooperation with our subsidiaries, we make use of the full range of communication tools at our disposal, including printed or electronic media, press releases, trade shows, and presentations. Our customer magazine Planet Wincor also plays a key role in our communications package and has been redesigned to offer significantly improved layout, content, and graphics.
Industry Event for Professionals. The Wincor World international trade show has been long established as the key industry event for retail banking and retail, again attracting over 7,000 delegates from more than 90 countries in 2011.
* The Forest Stewardship Council (FSC) is an international charitable organization that promotes environmentally aware, socially acceptable, and economically viable forestry practices. For more information, visit www.fsc.org and www.climatepartner.com.
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Wincor World launches new events in fastgrowing regions
During the period under review, we also began to expand our trade show communication strategy, which has so far focused on Wincor World as the key event, to include events in a number of growth regions in the future. We will be stepping up our presence at selected international trade fairs. Every year, we contribute to numerous other industry events worldwide, covering various retail banking and retail issues. We also host such events ourselves, including the International Management Seminar for banking executives, the Retail Banking Meeting run in collaboration with the renowned German financial journal Brsen-Zeitung, and a specialist banking conference for key decision-makers among our German customer base.
The Media as a Partner. The Companys activities are
underpinned by professional PR work at national and international level, an area in which we were very active during the period under review. In particular, our comprehensive information activities in China and India enjoyed very positive media coverage. In addition, we are committed to promoting premiumquality journalism, for example through our ongoing support of the German Bank & Insurance Journalism Prize, which is awarded for outstanding articles relating to the banking sector.
R I S K RE P ORT.
Risk Management System.
Embedding risk management into Group controlling
Wincor Nixdorf regularly finds itself confronted by risks and opportunities that can have both a positive and a negative impact on the Groups assets, profits, and cash flow, as well as on intangibles such as its reputation. In this report, we will present the most important risks we face and describe the principles underlying Wincor Nixdorfs risk management system. We see risks as the potential occurrence of internal or external events that may adversely affect our ability to achieve the Companys short-term goals or the implementation of its long-term strategy. Risks can also take the form of our missing or insufficiently exploiting the opportunities available to us.
In general, opportunities can be defined as strategic and operational developments, both internal and external, that can have a positive impact on the Groups future performance if used in the right way. We look on risk management as the ongoing challenge of identifying, analyzing, and evaluating the entire range of potential and actual developments so that we can control our response wherever possible. Risk management is an integral part of Wincor Nixdorfs overall management system, allowing us to spot risks that might jeopardize the Companys growth and/or existence at an early stage and limit their impact as far as we are able. This approach is not restricted to risk, however. Another key aim of risk management is to identify opportunities and exploit them for the benefit of Wincor Nixdorf. To this end, we have clearly defined the management and corporate structure of Wincor Nixdorf and separated certain functions in order to preserve the integrity of individual Group functions. A vital principle of risk management is that opportunities and risks should be evaluated wherever they might occur. This means managing risk both in our legally independent units and at Group level, with operating units enjoying a high degree of autonomy so that they can react flexibly to opportunities as they arise. To be more precise, risks are identified, analyzed, and evaluated in each of our operating units on the basis of the Groups overall aims and the corresponding aims of individual units. Parameter-based reporting processes are used to coordinate the activities of the relevant Group functions and determine the involvement of the Board of Directors. Risk Review Boards, whose members are also drawn from the Board of Directors, have been set up to analyze the main issues. Our centralized Risk Management department is responsible for controlling this risk management process and defining our risk standards and risk control tools. By embedding Risk Management within overall Group Controlling, we can ensure that it is treated as an integral component of everyday business management rather than as a response to specific risks, e.g., relating to particular projects. In this context, we produce an annual risk report and, at our meetings to discuss monthly, quarterly, and year-end results, we examine the opportunities and risks that concern Wincor Nixdorf and the individual units that make up the Group. The main elements of Risk Management at Wincor Nixdorf have also been documented in our management handbook and in Group directives.
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D e s cription of the Main Features of the Inte rn a l Control and Risk Management System s with Regard to the Group Accounting Process ( S e c tion 3 15 (2), No. 5 of the German Com mercial Code Handelsgesetzbuch, HGB). A key
element of our strategy for minimizing and avoiding risk, especially in the areas of accounting and financial reporting, is the internal control system. Wincor Nixdorfs internal control system contains a series of principles, procedures, and measures that are intended to ensure that the accounting process is effective and cost-efficient as well as complying with statutory regulations. Wincor Nixdorfs internal guidelines on accounting and financial reporting under IFRS provide a framework of uniform accounting policies for all the domestic and international companies that make up the consolidated Group. They also include stipulations for the Group financial statements as well as detailed and formalized requirements to be applied by Group companies. In addition, with regard to finances and financial reporting, integrity and responsibility are ensured by the inclusion of an obligation to that effect in the Groups internal Code of Conduct. We promptly evaluate the impact of all new regulations and amendments to existing accounting rules and, where they concern us, incorporate them into the accounting process. Wincor Nixdorf has established a largely uniform IT platform, a uniform system of accounts, and standardized, computer-based accounting processes. This standardization ensures that all significant transactions are recorded in a proper, timely, and uniform manner. Mandatory rules are in place for any additional manual recording of transactions. In most cases, accounting valuations, e.g., testing for the impairment of goodwill, are carried out by the Groups own specialist staff, although in isolated cases, such as the measurement of pension obligations, this task is performed by external valuation experts. In order to prepare Wincor Nixdorfs Group financial statements, the separate financial statements of those companies whose accounts are maintained using the Groups standard IT platform are transferred to an IT consolidation system based on SAP SEM. Data for the financial statements of all other Group companies is delivered using a web-based interface. The data provided to the parent company is automatically checked by the system. The separate financial statements submitted by Group companies are subjected to further centralized checks with due regard for the reports prepared by the auditors. Information relevant to the consolidation process is automatically
identified and obtained by the system, thus ensuring that Group internal transactions are properly and completely eliminated. All consolidation processes involved in drawing up the Group financial statements are performed and documented within the IT-based consolidation system. The components of the Group financial statements, including any significant disclosures for the Notes to the financial statements, are derived from the resulting information. At the heart of the internal control system lie a series of both process-integrated and process-independent measures. One fundamental element of the first of these is automatic, IT-based process control, while additional control functions, including manual process controls such as the four-eyes principle, have been established through the organizational separation of administrative, executive, billing, and authorization functions. The IT systems we use for this purpose are also protected as far as possible against unauthorized access through a system of access rights and restrictions. It should be noted, however, that even the use of appropriate and properly functioning systems cannot provide absolute certainty. Other control tasks are performed by specific Group functions such as the central tax department. Both the Supervisory Board of Wincor Nixdorf AG (in particular its Audit Committee) and Internal Audit are integrated into the internal control system and are tasked with carrying out independent checks.
Com pl i a nc e .
Wincor Nixdorfs Group Internal Audit conducts regular checks on the internal control systems and business processes of both subsidiaries and centralized functions with regard to compliance, cost-effectiveness, efficiency, and security. In particular, it monitors compliance with directives, organizational precautionary measures, financial indicators in the income statement and statement of financial position, and the structure of contracts, as well as drawing up proposals for process optimization. As an independent body, it reports directly to the Board of Directors and the Supervisory Boards Audit Committee.
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Are as of Risk.
The overall structure of risk categories covered within the Group has been centered around our core processes Idea to Market, Offer to Cash, and Operation & Maintenance, complemented by processes relating to Management and Support in general. The categories Idea to Market, Offer to Cash, and Operation & Maintenance include the entire range of performance/profitability and other risks, while Management covers the general business environment and industry-specific risks, business strategy risks, and information technology risks. Financial and personnel risks are allocated to the area of Support.
Business Environment and Indu s try- s pe c i f i c Risks. Future developments in the wider economy will be particularly important in determining the extent to which we are able to meet our targets. Although the overall rate of growth is expected to be positive in 2011 and 2012, the risk of a setback to economic recovery has become more pronounced against the backdrop of the significant levels of national debt accumulated by some countries. This may have an adverse effect on our future business performance. Over the last year, all the worlds national economies were affected by the financial and economic crisis. At present, there are expectations of renewed growth at international level, although continuing risks such as the high levels of debt maintained by some countries could still adversely affect the economic recovery and hence our own business prospects. In the wake of the crisis, our business is also exposed to other potential risks, in particular those created by instability in the global currency markets. A further increase in prices for raw materials and energy could equally have a negative impact on Wincor Nixdorfs earnings. In addition, we believe there is a high risk to ourselves and to our customers from unexpected events such as natural disasters and terrorist attacks. The markets in which banks and retailers operate are characterized by tough competition, and this can generate additional pressure on prices for our hardware, software, and services. In our view, this pressure is likely to persist in the present fiscal year. Alongside the risk posed to our business by the general market situation of our customers, Wincor Nixdorf is exposed to further risks from continuing internationalization, predatory competition, and lower barriers to market entry for potential new competitors. This trend towards a more aggressive form of competition could have a detrimental impact on profits.
Business Strategy Risks. Growth and success are fundamental to our business activities, and all the decisions we take on capital expenditure and corporate acquisitions are judged against these criteria. The Outsourcing business, which we have successfully introduced to the market over recent years and which involves our taking over related, large-scale processes on behalf of our customers, is an established part of our business. However, the complexity of such Outsourcing projects brings with it a high level of risk. We aim to counter these risks through timely risk analysis and ongoing risk management. By concentrating the risk process in the hands of a specialist team and drawing on our experience of previous successful projects, we are able to structure the business processes that we take over in a way that minimizes risk while best meeting our own requirements and those of our customers. We also make use of insurance policies and other options in order to minimize downtime and risk. Pe rfo rm a n c e a n d P rof i ta b i l i ty R i s k s . One of our aims is to position ourselves as the leading innovator and technology provider in our markets. Together with the fact that we are competing in markets where innovation plays a major role, this makes particular demands on our portfolio of solutions. In this context, there is a risk as regards the introduction by customers of new hardware and software. To counter this, as well as prioritizing intensive development work, we make every effort to identify customer needs at an early stage and to incorporate these needs into our hardware, software, and services. This involves close collaboration with our customers. Our leading position with regard to quality sets us apart from our competitors. Our aim here is to maintain and increase this edge. In order to achieve this aim, we need to identify and rectify potential weaknesses in our hardware, software, and services as quickly as possible. To this end, we focus continuously on innovation and quality. Risks that could be caused by poor quality are countered through our quality and environmental management system. Specifically, this means reducing these risks to a minimum through the preventive integration of risk assessment at every stage of development, a strict system for authorizing releases, and appropriate insurance. As a producer of ATMs and checkout systems, for example, we have to comply with the statutory environmental regulations that apply to our production sites, and our products have to meet key requirements with respect to returns and materials, etc. To ensure that this is the case, we have implemented an ISO 14001-certified environmental management system.
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Pe r s o nne l Risks. The work performed by our staff is essential to the growth and development of our Company. We are in competition with other companies for highly qualified specialist and managerial employees. In order to attract such people and retain them over the long term, we offer attractive terms of employment and a comprehensive training program. We do not see any issues that may pose a risk to recruitment of the specialist and managerial staff we need in line with our objectives. Information Technology Risks. Information security and data protection are particularly important to our customers in the banking industry. Now that Wincor Nixdorf has evolved to become a provider of IT solutions for banks and retailers, e.g., in the area of Outsourcing, the risks associated with the availability, integrity, and confidentiality of data are of growing significance to us. One of the ways in which we have responded to this challenge is through ISO 27001 certification. The aim of the management system described in this standard is to ensure the availability, integrity, and confidentiality of data. These measures may be impaired when IT systems are unavailable, possibly leading to claims for compensation from our business partners. Such claims can be triggered by outside attacks, among other things, through viruses and trojans. Given that similar risks are likely to exist in the future, we constantly strive to improve the information security of our systems. In this context, our information security management system supports the continuous development of existing systems by conducting targeted analyses to establish where additional protection is needed. To prevent operational disruptions caused by external factors, such as viruses penetrating the computer system, we always deploy the latest hardware and software solutions available on the market. In addition, our IT systems and architectures are regularly audited by independent experts. To ensure this level of protection remains in place at all times, the departments concerned work strictly to the above-mentioned TV/ISO standards. F i n a ncial Risks. Wincor Nixdorfs business is exposed to
The risk of a change in interest rates arises from taking up credit tied to the market rate. Interest expenses are mainly linked to the short-term variable market interest rate (EURIBOR) plus a margin. This margin can be subject to change depending on certain financial ratios. Being tied to a market interest rate, therefore, means that we are exposed to an interest rate risk as soon as that rate increases. In order to counteract this risk, we have concluded contracts relating to interest rate options. The global nature of the Group generates payments in both directions in a range of currencies. Incoming and outgoing payments in individual currencies are netted off against each other. Thus, by selecting suitable suppliers and making appropriate location-related decisions, we actively seek to create a natural hedging effect to the greatest extent possible. The netted-off amounts represent our remaining exchange rate risk, which is then hedged up to 100% (depending on volume and currency) on a rolling 12-month basis by means of suitable financial instruments. Since the companies making up the Wincor Nixdorf Group are largely refinanced centrally, there is a risk that liquidity reserves may be insufficient to settle financial obligations at the correct time. Wincor Nixdorf has provided for this eventuality by establishing reserves in the form of unused credit lines, and by treating cash flow as one of the Groups key control indicators subject to ongoing review. We reduce credit default 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. The risks to which Wincor Nixdorf is exposed in relation to financial instruments are explained in detail in Chapter Financial Instruments of the Notes to the Group financial statements.
Ca pi ta l M a rke t a s a Ri s k to Pe n s i on C o m m i tments. Share, bond, property, and other markets are subject to fluctuations in value that can also have an effect on our plan assets. Equally, changes in the rate of return can affect our pension commitments. Other considerations, which may also lead to an increase or reduction in pension and other commitments, include income trends, the ratio of those contributing to pension schemes and those receiving benefits from them, mortality rates, increases in health care costs, and other factors.
Financial Instruments, see page 111 et seq.
currency, interest rate, liquidity, and credit risks. The Group treasury function and efforts to limit financial risk are, to a large extent, managed centrally.
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We aim to mitigate the impact of these factors by assuring that assets are distributed in a balanced and flexible manner. However, such changes can have a negative impact on pension expenses, future contributions, and equity. As such, it is possible that future pension expenses and contributions may have a negative impact on the financial position and profitability of Wincor Nixdorf.
Othe r Risks. We are not presently aware of any actual or potential legal disputes that could affect the financial situation of the Group to any significant extent. However, Wincor Nixdorf is exposed to risks in connection with possible legal disputes in the future. Legal disputes may arise in the ordinary course of business, for instance, with regard to claims of incorrect provision of products and services, product liability, product defects, quality issues, or industrial property right infringements. There can be no guarantee that the outcome of such or other legal disputes will not be detrimental to the business activities or the reputation of Wincor Nixdorf. Claims of this nature and legal disputes, some of which with a significant impact on the Groups financial situation, cannot be ruled out entirely for the future. Ove ra ll Risk. As at the reporting date, and in the foresee-
R EPORT ON EX PEC TED D EV ELOPM EN TS.

Bus i n e s s Env i ro n m e n t i n the N e x t Two F i s c a l Ye a rs . Future M a c roe c onom i c S i tua ti on. In September 2011, the IMF again downgraded its growth forecast and at the same time warned of a possible escalation of the euro crisis. In its review, the International Monetary Fund anticipated weaker growth in the global economy as a whole in 2012. In light of subsequent developments in the period up to November 2011, even greater doubt has crept into forecasts of global economic growth in 2012. In a statement outlining its own assessment, the Organization for Economic Cooperation and Development (OECD) forecasts a dramatic increase in the overall level of uncertainty affecting the global economy. Compared to its earlier forecast in spring of this year, when it forecast growth of 2.0% for the eurozone in 2012, in late fall the OECD sharply downgraded its forecast to 0.3%. Although it only anticipates a minor year-on-year decline in growth among the twenty biggest industrial and emerging markets from 3.9% in 2011 to 3.8% in 2012, the OECD believes that the main impetus for growth will again come from the emerging markets, albeit at a rather slower pace. However, the OECD notes that all its forecasts are subject to a large degree of uncertainty. Industry Outlook. In November 2011, the banking industry faces considerable economic uncertainty all over the world, but especially in Europe. Future developments are likely to be determined by Europes sovereign debt crisis. Market players expect pressure on the creditworthiness of European states to continue unabated, leading in the medium term to higher refinancing costs for states and banks. It seems probable that the ongoing sovereign debt crisis will have far-reaching consequences for European banks, especially those in Southern Europe. In the event of a major weakening of the economy in Europe, as well as the United States, we could also see a negative impact on consumer behavior and therefore on the retail industry in those markets.
able future, the Board of Directors is not aware of any individual risk that could pose a danger to the continued existence of the Wincor Nixdorf Group. Equally, in the view of the Board of Directors, the sum of all risks does not show Wincor Nixdorf to be in any jeopardy.
E VE N TS A F T E R T HE BA L A NC E SH E E T DAT E .
Sovereign debt crisis creates uncertainty in European banking market
There are no events subject to mandatory inclusion in this report.
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As this report was being prepared in November 2011, no specific market research results were as yet available to help assess the likely impact of these developments on the willingness of retail banks and retailers to invest in IT systems. However, in October 2011 the market research firm Gartner downgraded its earlier forecast of growth in global IT expenditure in 2012 compared to 2011 from 5.9% to 3.9%, leaving a total of USD 2.6 trillion for the procurement of computers, software, and IT services. As regards the markets of direct relevance to Wincor Nixdorfs Hardware business, the U.K. market research firm Retail Banking Research (RBR) has forecast a slight year-on-year increase in 2012 of around 3% in the number of ATMs supplied worldwide, up from 358,184 to 368,634 systems. In this context, it is worth noting that ATM deliveries in Western Europe are likely to decline by around 6%. Eastern Europe, Asia/Pacific, and North America, meanwhile, are expected to produce forward momentum. Turning to the overall volume of EPOS and self-checkout systems supplied to the food/non-food and general merchandise sectors, global growth is forecast by RBR to exceed 10%, up from 912,880 systems in 2011 to 1,026,770 systems in 2012. Expansion within this specific area will be driven by all markets, led in particular by the Americas and Asia-Pacific.
O ve ra ll Asse ssment of Future Business Env i ro n ment. Given the high level of uncertainty, especially with regard to the banking industry in Europe, our core market, it is difficult to produce a reliable estimate, in quantitative terms, of the prospects for Wincor Nixdorf in fiscal 2011/2012. Furthermore, we cannot exclude the possibility that this uncertainty may continue into the following fiscal year 2012/2013. By contrast, prospects for growth in the emerging markets remain good, and the underlying trends driving our retail banking and retail business are still in place.
G roup Foc us ove r the N e x t Two F i s c a l Ye a rs .
We intend to maintain our basic focus over the coming years, while continuously reviewing and developing our corresponding plans. The foundation of our business model remains solid, since investment in information technology is vital to the success of both retail banks and retailers. Consequently, our business strategy also remains in place. This consists of four growth levers global expansion, market innovation, the expansion and ongoing development of highquality services, and the extension of our expertise into other areas of application. Both singly and in combination, these four levers can exploit potential new business and help to drive future growth. In spite of the market uncertainty, we intend to further strengthen our international sales operations and, for example, to work even more closely with our strategic partners throughout the world. In addition, Wincor Nixdorf will push ahead forcefully with the expansion of its activities and business in the emerging markets, an approach that will require a differentiated portfolio of products and services tailored to the needs of individual markets.
Future S a l e s M a rke ts . We believe the medium-term prospects are good, especially for CINEO, our new range of hardware systems, and for other innovative high-end solutions. Nevertheless, our future performance depends in large measure on how fast the global economic environment stabilizes and on our customers readiness to invest in high-end solutions. We will also push further ahead with our development as a full-service provider of solutions geared towards process optimization. To this end, we increasingly combine different components of our portfolio into integrated solutions, an approach that delivers crucial improvements to our customers. From a regional perspective, we believe there is significant potential for growth in the emerging markets, especially in the area of ATMs but also in the provision of IT equipment for expanding retail chains.
Good performance in emerging countries
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Anticip ated Personnel Developmen ts . Alongside
A n ti c i pa te d Pe rfo rm a n c e by Bus i n e s s S t re a m .
measures that have already been initiated on the sales and cost side, we intend to maintain the existing program of structural adjustments. These have led to an increase in our international workforce especially in the Asia/Pacific region and a corresponding adjustment in the absolute and relative size of our German workforce to reflect the growing importance of growth markets outside Europe. In response to the present uncertainty, above all in our European market, we cannot exclude the need to accelerate our existing program of personnel adjustments in fiscal 2011/2012, with a reallocation towards our increasingly important business in the Asia/Pacific region and our growing Software/Services business. Depending on our business performance, employee numbers in fiscal 2011/2012 will remain roughly at the level of 2010/2011.
Looking at our Hardware business, we do not expect any substantial momentum for growth and cannot even exclude the possibility of an overall downturn in revenue. The Software/Services business has performed well in recent years. However, it is possible that growth in this area may also decline, since the success of our software and services also depends on the level of demand for our hardware.
Ex pe c te d E a rn i ngs S i tua ti on. Pro f i t. Given the prevailing uncertainty in late fall 2011 sur-
Expected Business Situation. Net Sales. In light of the current slowdown in the economy and the increased uncertainty affecting above all the banking industry, Wincor Nixdorf does not anticipate any sustained impetus for sales growth from Europe. However, given its share of total Group net sales, this region is clearly essential to the Companys growth. Consequently, it would not be possible to compensate entirely for a downturn in our European business by expanding in the emerging markets, e.g., in the Asia/Pacific/ Africa region, where we expect business to remain buoyant. Equally, we do not anticipate any significant stimulus for growth in the Americas region. At present (November 2011), it is impossible to deliver a reliable forecast as we cannot foresee the extent to which more positive developments might help to counterbalance the current uncertainty. Accordingly, Wincor Nixdorf believes that a small decrease in net sales is possible in fiscal 2011/2012, as is an increase slightly above the level of growth in 2010/2011. In any event, with regard to the first quarter of fiscal 2011/ 2012, Wincor Nixdorf anticipates a decline in net sales compared to the first quarter of 2010/2011.
rounding the development of net sales, it is not possible to produce a reliable forecast for our operating result (EBITA) in fiscal 2011/2012. The impact on EBITA could in fact be substantial due to a reduction in economies of scale, mix effects (e.g., products and regions), as well as the cost of potential structural adjustments. In line with our estimate of net sales for fiscal 2011/2012, we believe a sharp downturn and a modest increase in profit are equally possible. Notwithstanding the above annual estimates, in percentage terms we expect the likely decline in sales to trigger a doublefigure downturn in profit for the first quarter of fiscal 2011/ 2012 compared to the positive results achieved over the same period in 2010/2011.
M a i n I nc om e Sta te m e n t I te m s . In 2011/2012, as
Production costs show further decrease
well as further expanding our sales activities in emerging markets, we intend to focus on achieving significant improvements in key cost items. In particular, we aim to make additional savings in production across the entire process chain and to exploit any remaining potential for reducing costs in the area of selling, general, and administration expenses. To protect our outstanding position as a leading innovator, in fiscal 2011/2012 we intend to maintain our consistently high spending on Research and Development by again investing over 4% of our net sales revenue in R&D projects. With regard to R&D, our main focus will be on the expansion of our platform technologies for retail banks and retailers, the extension of our software suites for both industries, and the ongoing optimization of our solutions in terms of cost and resource use
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over the entire product life cycle. Our aim is to use the best possible expertise to drive forward development while minimizing the associated costs. We expect the Group tax rate for the current fiscal year to remain at approximately the same level as in fiscal 2010/2011.
O p p o rtu n i ti e s . Opportunities Created by Developments in the Bus i n e s s E nv i ronm e nt. We believe that opportunities still exist, albeit temporarily limited in scope, to exploit the underlying trend for retail banks and retailers to boost their competitiveness by investing in information technology. This is the main target of our streamlining and automation solutions. In our view, the competitiveness of these solutions will be particularly enhanced by our CINEO family of systems, which is acknowledged in both industries as an innovative development. However, demand for these systems will mainly depend on whether the current uncertainties facing banks can be resolved, especially in our core European market. By contrast, we anticipate additional growth in the emerging markets, in particular, which continue to expand rapidly in spite of the prevailing uncertainties.
E x p e cte d Financial Situation.
The uncertainties surrounding our business performance in fiscal 2011/2012 could also impact on our asset position and financial situation. Given this uncertain environment, we therefore intend to focus on those factors that have particularly helped Wincor Nixdorf to stand out in the past. As well as a strong balance sheet, we have a stable equity ratio of over 25% and a relatively low level of net debt. In this context, we have already shown in the past that our financial strategy is anchored to fundamental principles. That includes our determination to achieve a strong cash flow. We are currently (late fall 2011) in negotiations with the relevant partners over our future borrowing requirements.
D i v i d e nd. Our dividend proposal for 2011/2012 will continue to be based on the policy we adopted as our maxim on flotation in 2004. According to this policy, around 50% of the profit generated in a fiscal year should be distributed as a dividend. We see this emphasis on continuity as a key element of an overall corporate policy that stresses the importance of reliability.
O ve ra l l A s s e s s m e n t o f Future G roup D e ve l opm e nt.
At the time of writing in November 2011, forecasts of global economic growth in 2012 have taken on a much less optimistic note. In a statement outlining its own view, the Organization for Economic Cooperation and Development (OECD) forecasts a dramatic increase in the overall level of uncertainty affecting the global economy. Wincor Nixdorf detects a corresponding uncertainty in the European banking market, above all, and intends to adopt a cautious, wait-and-see approach. It is impossible to deliver a reliable forecast, as we cannot foresee the extent to which more positive developments might help to counterbalance the current uncertainty. Accordingly, Wincor Nixdorf believes that a small decrease in net sales is possible in fiscal 2011/2012, as is an increase slightly above the level of growth in 2010/2011. Given the prevailing uncertainty in late fall 2011, it is not possible to produce a reliable forecast of the extent to which our net sales performance in 2011/2012 might impact on our operating result (EBITA).
Dividend policy based on continuity and reliability
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The impact on EBITA could in fact be substantial, above all on account of a reduction in economies of scale, mix effects (e.g., products and regions) as well as the cost of potential structural adjustments. In line with our estimate of net sales for fiscal 2011/2012, we believe a sharp downturn and a modest increase in profit compared to the last fiscal year are equally possible. Notwithstanding the above annual estimates, in percentage terms we expect the first quarter of fiscal 2011/2012 to produce a decline in net sales and a double-figure downturn in operating profit compared to the positive results achieved over the same period in 2010/2011. Looking further ahead to fiscal 2012/2013, as yet there are no signs of a sustained improvement in the business environment. We believe it is entirely possible, reflecting developments in the global economy, that the current level of uncertainty surrounding our future net sales and profits will continue.
Disclaimer. The statements made in the outlook are based on current assumptions and assessments made by the Board of Directors of Wincor Nixdorf AG. They are not intended to be taken as guarantees that these expectations will prove to be correct. The future performance and actual results achieved by Wincor Nixdorf AG and its affiliated companies depend on a series of risks and uncertainties and may, therefore, vary considerably from the forecasts made. Many of these factors, such as the future of the economy and the actions of our competitors and other market players, are outside the control of Wincor Nixdorf and cannot be predicted with any degree of certainty. There are no plans to update the forecasts made in this section. Wincor Nixdorf does not accept any specific obligation in respect of the forecasts in this report.
Not es t o t he Gr oup Fi na nc i a l S t a t em ent s Group Management Report Group Accounts
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Group Income Statement. Group Statement of Comprehensive Income. Group Balance Sheet. Group Cash Flow Statement. Changes in Group Equity.
98 98 99 100 101
Notes to the Group Financial Statements.

Segment Report. General Information. Methods of Consolidation. Accounting and Valuation Principles. Notes to the Group Income Statement. Notes to the Group Balance Sheet. Other Information. Auditors Report. 102 103 105 107 114 117 130 143
Group Accounts
Group Accounts.
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Wincor Nixdorf Aktiengesellschaft, Paderborn Group Income Statement for the Period from October 1, 2010 to September 30, 2011.
k Note 2010/2011 2009/2010
Net sales Cost of sales Gross profit Research and development expenses Selling, general and administration expenses Other operating income Other operating expenses Result from equity accounted investments Net profit on operating activities Finance income Finance costs Profit before income taxes Income taxes Profit for the period Profit attributable to non-controlling interests Profit attributable to equity holders of Wincor Nixdorf AG Shares for calculation of basic earnings per share (in thousands) Shares for calculation of diluted earnings per share (in thousands) Basic earnings per share () Diluted earnings per share ()
1 2 3 4 4 10 5 5 6
2,328,200 1,757,895 570,305 100,167 307,456 210 158 378 162,356 1,905 8,822 155,439 47,150 108,289 1,171 107,118
2,239,471 1,676,994 562,477 101,349 299,507 556 0 53 162,230 1,471 7,486 156,215 49,738 106,477 288 106,189 31,653 31,690 3.35 3.35
7 7 7 7
30,795 30,826 3.48 3.47
Group Statement of Comprehensive Income for the Period from October 1, 2010 to September 30, 2011.
k Note 2010/2011 2009/2010
Profit for the period Cash flow hedges Exchange rate changes Actuarial gains and losses Other comprehensive income (net of tax) Total comprehensive income Total comprehensive income attributable to: Non-controlling interests Equity holders of Wincor Nixdorf AG
16
108,289 650 2,406 890 866 109,155 1,175 107,980
106,477 5,937 9,238 8,274 4,973 101,504 288 101,216
G r o u p M a n a ge me n t Rep o rt Group Accounts
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Wincor Nixdorf Aktiengesellschaft, Paderborn Group Balance Sheet as of September 30, 2011.
A s s ets
Note Sept. 30, 2011 Sept. 30, 2010 k
Non-current assets Intangible assets Property, plant and equipment Investments accounted for using the equity method Investments Reworkable service parts Trade receivables Other assets Deferred tax assets Current assets Inventories Trade receivables Receivables from related companies Current income tax assets Other assets Investments Cash and cash equivalents Total assets
14 12 12 12 12 10 15 8 9 10 10 11 12 12 13
354,366 150,818 5,440 1,197 24,885 2,572 3,265 27,115 265,810 387,080 8,091 6,829 47,771 25 22,146 737,752 1,307,410 569,658
352,003 153,313 28 1,193 21,559 1,995 2,366 26,017 288,025 340,677 281 3,726 60,018 26 19,959 712,712 1,271,186 558,474
E q u i ty and Liabilities
Note Sept. 30, 2011 Sept. 30, 2010
Equity Subscribed capital of Wincor Nixdorf AG Retained earnings Treasury shares Other components of equity Equity attributable to equity holders of Wincor Nixdorf AG Non-controlling interests Non-current liabilities Accruals for pensions and similar commitments Other accruals Financial liabilities Trade payables Other liabilities Deferred tax liabilities Current liabilities Other accruals Financial liabilities Advances received Trade payables Liabilities to related companies Current income tax liabilities Other liabilities Total equity and liabilities
19 20 20 20 20 20 20 18 19 20 20 20 13 16 17
33,085 439,666 175,823 27,105 324,033 5,864 24,405 46,553 2,107 213 3,459 27,993 122,544 196,957 19,354 288,441 28,140 24,675 192,672 872,783 1,307,410 104,730 329,897
33,085 389,922 101,243 30,583 352,347 6,103 23,198 46,283 115,334 402 5,665 17,585 146,174 39,030 32,313 274,191 884 23,138 188,539 704,269 1,271,186 208,467 358,450
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Wincor Nixdorf Aktiengesellschaft, Paderborn Group Cash Flow Statement for the Period from October 1, 2010 to September 30, 2011.1
k 2010/2011 2009/2010
EBITA Amortization/depreciation of property rights, licenses and property, plant and equipment Write-down of reworkable service parts EBITDA Interest received Interest paid Income taxes paid Result on disposal of intangible assets and property, plant and equipment Change in accruals Other non-cash items Change in working capital Change in other assets and other liabilities Cash flow from operating activities Payments received from the disposal of property, plant and equipment Payments received from the disposal of investments and other payments received Payments made for investment in intangible assets Payments made for investment in property, plant and equipment Payments made for acquisition of consolidated affiliated companies and other business units Payments made for investments Payments made for investment in reworkable service parts Cash flow from investment activities Payments made to equity holders Payments received from financial loan draw-downs Payments made for repayment of financial loans Payments made to minority interest and other payments Payments made for repurchase of treasury shares Payments received for sale of treasury shares Other financing activities Cash flow from financing activities Net change in cash and cash equivalents Change in cash and cash equivalents from exchange rate movements Cash and cash equivalents at beginning of period 2 Cash and cash equivalents at end of period 2
1) For 2)
162,356 54,219 8,701 225,276 1,323 6,027 37,107 293 19,052 6,665 31,003 3,325 143,693 1,020 103 8,456 43,227 3,129 9 12,041 65,739 53,149 86,975 1,815 1,240 89,187 1,250 3,177 53,989 23,965 69 17,683 6,213
162,230 52,333 8,628 223,191 595 6,090 51,559 61 19,527 664 32,800 519 154,108 583 264 6,325 46,368 0 0 10,354 62,200 58,578 23,059 60,266 4,535 14,017 0 1,215 115,552 23,644 145 5,816 17,683
further explanations, see Note 27. Include cash and cash equivalents and current bank borrowings.
G r o u p M a n a ge me n t Rep o rt Group Accounts
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Wincor Nixdorf Aktiengesellschaft, Paderborn Changes in Group Equity.1

k Equity attributable to equity holders of Wincor Nixdorf AG Other components of equity Subscribed capital Retained earnings Treasury shares Add. paid- Exchange rate in capital changes Cash flow hedges Noncontrolling interests
Total
Equity
As of October 1, 2009 Cash flow hedges Exchange rate changes Actuarial gains and losses Other comprehensive income Profit for the period Total comprehensive income Share options Repurchase of treasury shares Takeover of shares and other changes Distributions As of September 30, 2010 As of October 1, 2010 Cash flow hedges Exchange rate changes Actuarial gains and losses Other comprehensive income Profit for the period Total comprehensive income Share options Repurchase of treasury shares Takeover of shares and other changes Distributions As of September 30, 2011
1) For
33,085 0 0 0 0 0 0 0 0 0 0 33,085 33,085 0 0 0 0 0 0 0 0 0 0 33,085
344,970 0 3,700 8,274 4,574 106,189 101,615 5,046 0
87,226 0 0 0 0 0 0 0 14,017
43,593 0 0 0 0 0 0 1,105 0 0 0 42,488 42,488 0 0 0 0 0 0 933 0 0 0 41,555
14,565 0 5,538 0 5,538 0 5,538 0 0 0 0 9,027 9,027 0 1,895 0 1,895 0 1,895 0 0 0 0 10,922
3,059 5,937 0 0 5,937 0 5,937 0 0 0 0 2,878 2,878 650 0 0 650 0 650 0 0 0 0 3,528
322,916 5,937 9,238 8,274 4,973 106,189 101,216 3,941 14,017 3,021 58,688 352,347 352,347 650 2,406 894 862 107,118 107,980 6,738 89,187 696 53,149 324,033
7,095 0 0 0 0 288 288 0 0 977 303 6,103 6,103 0 0 4 4 1,171 1,175 0 0 1,080 334 5,864
330,011 5,937 9,238 8,274 4,973 106,477 101,504 3,941 14,017 3,998 58,991 358,450 358,450 650 2,406 890 866 108,289 109,155 6,738 89,187 1,776 53,483 329,897
3,021 0 58,688 0 389,922 101,243 389,922 101,243 0 0 4,301 894 3,407 107,118 110,525 6,936 0 0 0 0 0 0 14,607 89,187
696 0 53,149 0 439,666 175,823
further explanations, see Note
16.
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Wincor Nixdorf Aktiengesellschaft, Paderborn Notes to the Group Financial Statements for Fiscal 2010/2011.
S E G M E NT R E P ORT IN AC COR DA NC E WITH IFRS 8.
Opera ting Segments.1
Banking Retail k Group
Net sales to external customers Operating profit (EBITA) Result from equity accounted investments Segment assets Segment liabilities Investment in property rights, licenses and property, plant and equipment Investment in reworkable service parts Amortization/depreciation and impairment of property rights, licenses and property, plant and equipment Write-down of reworkable service parts Research and development expenses
Last years figures are shown in brackets. 1) For further explanations, see Note 28.
1,527,237 (1,497,255) 119,705 (125,865) 378 (53) 577,460 (561,705) 255,246 (250,282) 44,644 (45,289) 9,994 (8,076) 47,115 (44,614) 7,222 (6,730) 67,661 (67,530)
800,963 2,328,200 (742,216) (2,239,471) 42,651 162,356 (36,365) (162,230) 0 378 (0) (53) 272,847 850,307 (262,238) (823,943) 137,213 392,459 (144,975) (395,257) 6,801 51,445 (6,204) (51,493) 2,047 12,041 (2,278) (10,354) 7,104 54,219 (7,719) (52,333) 1,479 8,701 (1,898) (8,628) 32,506 100,167 (33,819) (101,349)
Se condary Information.1
Europe Included in Europe: Germany Asia/Pacific/ Africa Americas
Group
Net sales to external customers Segment assets Non-current assets Investment in property rights, licenses and property, plant and equipment Investment in reworkable service parts
Last years figures are shown in brackets. 1) For further explanations, see Note 28.
1,735,283 (1,602,804) 600,238 (560,009) 172,736 (171,407) 48,245 (43,208) 10,942 (9,604)
612,411 (643,750) 331,881 (295,315) 157,058 (153,481) 38,454 (37,377) 10,942 (9,604)
355,621 (331,921) 199,635 (192,954) 15,743 (15,899) 2,394 (2,913) 1,099 (750)
237,296 2,328,200 (304,746) (2,239,471) 50,434 850,307 (70,980) (823,943) 6,366 194,845 (5,941) (193,247) 806 51,445 (5,372) (51,493) 0 12,041 (0) (10,354)
Gr oup Account s Notes to the Group Financial Statements
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GEN E R AL I N FO R MAT ION. Wincor Nixdorf Group (in the following Wincor Nixdorf or the Group) is one of the worlds leading providers of IT solutions to retailers and banks. 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 segments 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 110 countries around the world and has its own subsidiary companies in 42 of these. Major business geographies are Germany and Europe; however, the Group also operates on all other continents. The Groups main production facilities are located in Paderborn and Ilmenau (Germany), Singapore, Shanghai (China), and Brazil. Research and development within the Group is conducted predominantly in Germany, Singapore, and China. The ultimate 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 MDAX. The Groups 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 Groups 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 17, 2011, the Board of Directors of Wincor Nixdorf AG released the Group financial statements for the purpose of forwarding them to the Supervisory Board. The Supervisory Board is responsible for assessing the Group financial statements and specifying whether it is issuing an approval of the Group financial statements.
Use of International Financial Reporting Stand a rd s ( I F RS ) . The Group financial statements of Wincor
Nixdorf AG as of September 30, 2011, 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 2010/2011, Wincor Nixdorf AG has applied the following standards, interpretations and amendments for the first time: IFRS 1 revised First-time Adoption of IFRS (to be applied for periods beginning on or after January 1, 2010) IFRIC 17 Distributions of Non-Cash Assets to Owners (to be applied for periods beginning on or after November 1, 2009) IFRIC 18 Transfer of Assets from Customers (to be applied for periods beginning on or after November 1, 2009) IFRIC 15 Agreements for the Construction of Real Estate (to be applied for periods beginning on or after January 1, 2010)
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IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments and amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards (to be applied for periods beginning on or after July 1, 2010) Amendments to IFRS 1 Additional Exemptions for First-time Adopters (to be applied for periods beginning on or after January 1, 2010) Amendments to IFRS 2 Group Cash-settled Share-based Payment Transactions (to be applied for periods beginning on or after January 1, 2010) Amendments to IFRS 1 und IFRS 7 Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (to be applied for periods beginning on or after July 1, 2010) Amendments to IAS 32 Financial Instruments: Presentation: Classification of Rights Issues (to be applied for periods beginning on or after February 1, 2010) Improvements to IFRSs (Issued by IASB in April 2009) (to be applied for periods beginning on or after January 1, 2010) Improvements to IFRSs (Issued by IASB in May 2010) (to be applied for periods beginning on or after July 1, 2010/January 1, 2011) The first-time application of standards, interpretations, and amendments had no material effect on the Group financial statements of Wincor Nixdorf AG as of September 30, 2011. In addition, the following standards, interpretations, and amendments have been released by the IASB and adopted by the European Union until September 30, 2011; however, they are not yet applicable for the Group financial statements of Wincor Nixdorf AG in fiscal 2010/2011: IAS 24 revised Related Party Disclosures and amendments to IFRS 8 Operating Segments (to be applied for periods beginning on or after January 1, 2011) Amendments to IFRIC 14 Prepayments of a Minimum Funding Requirement (to be applied for periods beginning on or after January 1, 2011)
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 settlements that are not applied before the effective date on the presentation of the Group financial statements of Wincor Nixdorf AG at the moment of firsttime application.
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MET HO DS O F C O NSOL IDAT ION.

C o n solidation Group. The Group financial statements as of September 30, 2011, include those companies in which Wincor Nixdorf AG directly or indirectly has a majority of the voting rights (subsidiaries), or from which it is able to derive the greater part of the economic benefit and bears the greater part of the risk by virtue of its power to govern corporate financial and operating policies. Inclusion of such companies accounts in the Group financial statements begins at the moment of exercising control over the company, and ceases at expiration of control. In fiscal 2010/2011, changes in the consolidation group as a result of acquisitions and new foundations were as follows: With effect from July 1, 2011, 100% of the shares in Dynasty Technology Group, S.A., Madrid, Spain (in the following Dynasty Spain), as well as 100% of the shares in Dynasty Technology Brasil Software Ltda., So Paulo, Brazil (in the following Dynasty Brazil), have been acquired. In total, a purchase price of 4,880k has resulted. The purchase price consists of a fixed purchase price payment in the amount of 4,080k and a variable purchase price amounting to 800k, which can increase or decrease depending on the outcome of the two companies in calendar year 2011. The contributable revaluated equity as of July 1, 2011, came to 4,880k. Acquired assets and liabilities have no material effect on the Group financial statements. The entities share in net sales and the profit for the period is 2,504k, respectively 937k. Had the companies been fully consolidated on October 1, 2010, Group net sales and profit for the period would have been 6,497k, respectively 151k higher. Based on the values at acquisition date, the acquisitions of Dynasty Spain and Dynasty Brazil affected, in total, the Group financial statements as presented below:
k 2010/2011
New foundation of Wincor Nixdorf (Pty) Ltd, HurlinghamSandton, South Africa, subscribed capital of ZAR 1 (0.10) New foundation of WINCOR NIXDORF Oil and Gas IT LLC, Moscow, Russia, subscribed capital of RUB 300k (7k) New foundation of Wincor Nixdorf Global IT Operations GmbH, Paderborn, subscribed capital of 25k Furthermore, Wincor Nixdorf increased its interests in Bankberatung Organisations- und IT-Beratung fr Banken AG during the year under review, by 6.48% to 90.35% for a total purchase price of 906k. The number of consolidated companies in fiscal 2010/2011 changed as follows:
Germany Other countries Total
October 1 Newly founded companies Acquisitions September 30
22 1 0 23
53 2 2 57
75 3 2 80
There was no significant impact on the Groups net assets, financial position, and results of operations as a result of the change of the consolidation group in fiscal 2010/2011. During the year under review, Giesecke & Devrient GmbH, Munich, Germany (in the following G&D) and Wincor Nixdorf have pooled their activities for the development, manufacture, and marketing of security technologies for authenticating and processing banknotes. For this reason, the operating business of BEB Industrie-Elektronik AG, Burgdorf, Switzerland (in the following BEB) was transferred as of January 1, 2011 to the entity CI Tech Components AG, Burgdorf, Switzerland (in the following CI Tech), a new foundation of BEB. As of July 1, 2011, G&D acquired 50% of CI Tech.
Cons ol i da ti on P ri nc i p l e s . The Group financial statements are based on the annual accounts of companies forming part of the Group, such accounts having been compiled under uniform Group rules as of September 30, 2011, and, for the comparative period, as of September 30, 2010. By departure from this, we have used interim accounts in respect of ten companies, as local statutory requirements dictate that these companies have fiscal years ending December 31.
Non-current assets thereof goodwill + Current assets + Acquirees cash and cash equivalents Non-current and current liabilities = Net assets = Total acquisition costs
4,857 0 2,010 1,092 3,079 4,880
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Capital consolidation was carried out in accordance with IFRS 3. According to IFRS 3 all business combinations have to be accounted for using the purchase method, i.e., the acquired assets, liabilities and contingent liabilities are measured at fair value. The excess of the cost of the business combination over the acquirers interest in the net fair value of recognized assets, liabilities and contingent liabilities is recognized as goodwill. Goodwill is not amortized on a scheduled basis. Moreover, goodwill is tested for impairment annually or if an indication for impairment exists, and if applicable, an impairment loss is recorded. The interests in subsidiary companies, which are not attributable to the parent company, are shown within Group equity as non-controlling interests. Other shareholders interests are also calculated on the basis of the fair values of assets, liabilities, and contingent liabilities attributable to them. Mutual receivables and payables between companies included in the consolidated accounts, intra-Group income and expenses, as well as intra-Group profit or loss from the delivery of goods and services, are eliminated. If necessary deferred taxes are applied on consolidation transactions.
Jointly Controlled Entities. Joint ventures are those
entities over whose activities Wincor Nixdorf has joint control with partners, which are established by contractual agreement and requiring unanimous consent for strategic financial and operating decisions. Investments in jointly controlled entities are accounted for using the equity method. Based on the cost of the investment at the date of acquisition, the carrying amount of the investment is increased or decreased by the share of profit or loss, dividends distributed, the share of intra-Group profit elimination resulting from business with Wincor Nixdorf, and other changes in the equity of the jointly controlled interests attributable to the investments of Wincor Nixdorf AG or its consolidated subsidiaries. Investments in companies accounted for using the equity method are written down as impaired if the recoverable amount falls below the carrying amount.
Currency Translation. In the individual annual accounts prepared in local currency, foreign currency transactions are recorded at the exchange rates applicable at the time of the transactions. Monetary items in foreign currency (cash and cash equivalents, receivables and payables) are valued at the mid exchange rate on the balance sheet date. The exchange rate profits or losses arising from the valuation or transaction of monetary items are shown in the Group income statement. Non-monetary items are recorded using historical exchange rates. Annual accounts prepared in foreign currencies have been converted into euro using the functional currency method, in accordance with IAS 21. The functional currency is the currency in which a foreign entity primary operates or settles payments. As the Group companies undertake business dealings financially, economically, and organizationally independently, the functional currency is, in general, identical with the local currency. However, in the case of Wincor Nixdorf C.A., Venezuela, Wincor Nixdorf Pte. Ltd., Singapore, Wincor Nixdorf S.A. de C.V., Mexico City, Mexico, and Wincor Nixdorf IT Support S.A. de C.V., Mexico City, Mexico, the U.S. dollar, and in the case of Wincor Nixdorf Bilgisayar Sistemleri A.S., Istanbul, Turkey, the euro, is used as the functional currency, since these currencies influence the purchase and sales prices for goods and services of the foreign entities. Balance sheet items, including goodwill, are converted at the mid exchange rate applicable on the balance sheet date, and income and expenses in the Group income statement are converted using average exchange rates (annual averages) provided that the foreign exchange rates are more or less stable. The variance arising from conversion is offset against shareholders equity without affecting profit. Currency differences that result from comparison to last years currency conversion are also charged against equity without affecting profit. The foreign exchange rates of the significant currencies for the Group have developed as follows:
Average rate 1 = ISO Code 2010/2011 Closing rate Sept. 30, 2010
2009/2010 Sept. 30, 2011
Pounds sterling U.S. dollar
GBP USD
0.8714 1.3982
0.8679 1.3535
0.8667 1.3503
0.8600 1.3648
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ACCOU N T I N G AND VA L UAT ION PRINC I P LE S. The Group financial statements are prepared on the basis of accounting and valuation policies that are applied uniformly throughout the Group. The accounting and valuation principles have been retained unchanged compared to the previous year. Assets and liabilities have been valued at historical acquisition/production cost, with the exception of financial instruments classified as financial asset or financial liabilities at fair value through profit or loss and derivatives, which have been included at their fair value.
A s s u mptions and Estimations. In compiling the
With regard to the assumptions made and estimates used, we refer to the following remarks in this chapter as well as in the Notes to the Group Income Statement and Group Balance Sheet and Other Information. In compiling the Group Financial Statements the following material judgements have been made in the process of applying accounting policies: Accounting for interests in joint ventures using the equity method in accordance with IAS 31.38 Recognition of actuarial gains and losses in equity without any impact on profit or loss according to IAS 19.93A Accounting for cash flow hedges
N e t S a l e s . Net sales from the delivery of goods are recognized as soon as the entity has transferred to the customer the significant risks and rewards of ownership of the goods. Within this context, the entity retains neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold. The amount of revenue can be measured reliably, and it is probable that the economic benefits associated with the transaction will flow to the enterprise. No net sales are recognized if there are significant uncertainties regarding recovery of the consideration due or the possible return of goods. Net sales are recognized net of applicable provisions for discounts and allowances. If the sale of products includes a determinable amount for subsequent services (multiple-component contracts), the related revenues are deferred and recognized as income over the period of the contract. Amounts are normally recognized as income according to the service provision. Net sales from services are recognized when the service is rendered, insofar as the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the enterprise. In the case of maintenance agreements, net sales are recognized in principle on a straight-line basis over the contract terms. Net sales are generally stated net of sales taxes, other taxes, and sales deductions as discounts and allowances at the fair value of the consideration received or to be received. Income from operating leases and finance leases is recognized based on the provisions of IAS 17.
Group financial statements, assumptions have been made and estimates used, which have affected the value and reporting of capitalized assets and liabilities, of income and expenses, and of contingent liabilities. The assumptions mainly relate to the Group-wide setting of standard economic utilization periods of intangible assets and property, plant and equipment, and to the valuation of inventories. Estimates have a material influence on the determination of discounted cash flows used for impairment testing, the valuation of inventories, accruals for pensions and similar commitments, and other accruals, as well as the ability of future tax benefits to be realized. Estimates are based on historical experience and other assumptions that are considered valid at the balance sheet date and reasonable under given circumstances. The underlying future business development is the one for which the highest probability can be assumed. Additionally, the development of the retail and banking industry as well as of the business environment has been accounted for. The estimates and the underlying assumptions are continuously verified. The actual values may vary in individual instances from the assumptions and estimates made if the general conditions unfold in contrast to the expectations at the balance sheet date. Changes are incorporated, with a corresponding effect on profit, once improved knowledge is obtained.
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Cost of Sales. The cost of sales includes costs of the sale of products and services as well as purchase costs of the sale of merchandise. In addition to direct material and production costs, the cost of sales comprises overheads, including the prorata consumption of intangible assets and property, plant and equipment. Research and Development Expenses. Under IAS 38, research expenses are not to be capitalized. Development expenses have to be capitalized only if certain precise preconditions are met. Under these rules, capitalization is required wherever the development activity will, with an adequate degree of probability, result in future cash inflows, which will cover the relevant development expenses in addition to normal costs. Moreover, certain criteria of IAS 38.57 must also be met cumulatively, in terms of the product to be developed or the project or process to be developed. These preconditions are not met in the Group, as the nature and dimension of characteristic research and development risks mean that the functional and commercial risk inherent in the products under development can, as a rule, only be estimated with sufficient reliability when development of the relevant products or processes has been completed, and post-development sales and marketing activities conducted during the pre-marketing stage (marketing and sale as a trial product) have proven that the products meet the technical and commercial requirements posed by the market. Inside of the Group, a major part of research and development expenses concerns enhancements and improvements of already existing products, which do not comply with the criteria of IAS 38 for separate capitalization. Since single development projects are often subject to approval and certification procedures, the conditions for the capitalization of costs incurred before receipt of approvals are not normally satisfied. Borrowing costs. Borrowing costs are expensed as in-
Government Grants. Government grants are recognized only if there is a reasonable assurance that the associated conditions will be met and the grants will be received. Basically, grants related to assets are reported as a reduction of cost of the assets concerned with a corresponding reduction of depreciation and amortization in subsequent periods. Grants related to income (e.g., grants from the Federal Employment Agency) are stated as a reduction of the corresponding expenses in the periods in which the expenses the grant is intended to compensate are incurred. During the year under review, government grants related to income came to 1,339k (2009/2010: 1,700k) and are reported in principle in the Group income statement under functional costs (cost of sales, research and development expenses, and selling, general and administration expenses). Ta xe s . Income Taxes comprise both ongoing and deferred
taxes. Taxes are recorded in the Group income statement unless they refer to items directly recorded under shareholders equity, in which case the corresponding taxes are also entered under shareholders equity without any effect upon profit. Ongoing income taxes are taxes expected to be payable for the year, on the basis of tax rates valid in the year in question, plus any tax corrections for previous years. Deferred taxes are reported in respect of temporary differences between the values, for tax purposes, of assets and liabilities and their values in the Group financial statements. In addition, deferred tax assets in respect of the future utilization of tax losses carried forward are shown. Deferred tax assets on temporary differences and tax losses carried forward are recognized to the extent that it is probable that sufficient taxable income will be available in order to use them. The deferred taxes are shown at the rates of tax that will be effective under applicable law at the time at which the temporary differences are predicted to turn around, or at which the tax losses carried forward can probably be used.
curred unless they are directly attributable to the acquisition, construction, or production of a qualifying asset and therefore are part of the cost of that asset.
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Offsetting of deferred tax assets and deferred tax liabilities is performed if the positions are related to income taxes, which are levied by the same tax authorities, for which the Group has a right to set off the recognized amounts and which arise for the same companies or within the same tax group, respectively. The remaining taxes, such as property and energy taxes, are included in the functional cost items.
Intangible Assets. Intangible assets are accounted for at cost and, as the useful lives are, with the exception of goodwill, finite, amortized in a scheduled manner in equal annual amounts over the relevant utilization period. Intangible assets are written down if there are indications of impairment (see Impairment) and if the recoverable amount is lower than amortized costs. The write-downs are reversed with effect on profit, if the reasons for the impairment losses no longer apply, to the maximum of amortized costs. The amortization period for commercial patents and licenses is a maximum of five years. The amortization as well as impairment losses of other intangible assets are included in the Group income statement under the various functional cost headings (cost of sales, research and development expenses, and selling, general and administration expenses). As in the previous year, there were no reversals of impairment losses on intangible assets. No borrowing costs were recognized as a cost component of intangible assets during the year under report. According to IFRS 3, goodwill is not amortized on a scheduled basis, only if a need for impairment loss exists. A recorded impairment loss on goodwill may not be reversed in subsequent periods. Property, Plant and Equipment. Property, plant and
Items of property, plant and equipment are written down if there are indications of impairment (see Impairment) and the recoverable amount is less than amortized costs. The writedowns are reversed, if the reasons for the impairment losses no longer apply, to the maximum of amortized costs. The cost of acquisition comprises the acquisition price, ancillary costs, and subsequent acquisition costs, less any reduction received on the acquisition price. Production costs include direct costs as well as proportionate indirect costs. Business and factory premises are amortized over a maximum of 50 years, plant and machinery over an average of ten years, other fixed assets and office equipment mainly over five years, and products leased to customers as per the terms of the relevant contract. Property, plant and equipment are mainly depreciated using the straight-line method, in accordance with economic utilization. If parts of single assets have different useful lives, they are separately depreciated on a scheduled basis. The depreciation of the fiscal year as well as impairment losses are included in the Group income statement under the various functional cost headings (cost of sales, research and development expenses, and selling, general and administration expenses). Expenses for the repair of property, plant and equipment, such as ongoing maintenance costs, are normally recognized in income. The cost of acquisition or construction is capitalized if a repair will result in future economic benefits. As in the previous year, there were no reversals of impairment losses on property, plant and equipment. No borrowing costs were recognized as a cost component of property, plant and equipment during the year under review.
I m p a i rm e nt. With the exception of inventories (see Reworkable Service Parts and Current Inventories), deferred tax assets (see Taxes) as well as financial assets (see Financial Instruments), the book values of assets held by the Group are checked on the balance sheet date for indicators favoring impairment. Where such indicators exist, the settlement value of the assets (recoverable amount) is estimated and where necessary devaluation is made with a corresponding charge to the Group income statement.
equipment are valued at cost of acquisition or production, less scheduled depreciation and impairment losses. They were not revalued in accordance with the option under IAS 16.
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According to IAS 36, goodwill is tested for impairment annually, or if an indication for impairment exists, by the execution of an impairment test. In doing so, the book value of a cash-generating unit is compared with the recoverable amount. The recoverable amount of a cash-generating unit is the greater of the two figures fair value less costs to sell and value in use. If the recoverable amount of a cash-generating unit is lower than its book value, at first a goodwill impairment loss is recorded in the amount of the difference. In the case of Wincor Nixdorf, the recoverable amount equals the value in use, which is determined by the discounted cash flow method. The basis for the determination of future cash flows is data from the detailed Group planning for the periods until 2013/2014. The assumptive continual growth of 0 to 1.5% (2009/2010: 1 to 1.5%) for perpetuity complies with the general expectation of the business development. The present value of expected cash flows is calculated by discounting the free cash flows, with an interest rate before taxes between 5.9 and 9.8% (2009/2010: 5.4 to 9.0%) resembling the referring rate of return of the business units. As of September 30, 2011, no impairment is necessary. The Retail and Banking business carved out of the Siemens Group as of October 1, 1999, is separated in cash-generating units according to regional segmentation. The relevant goodwill is fully assigned to the cash-generating unit Carve-out Europe. All of the following acquisitions are treated individually as independent business units (cash-generating units) according to IFRS 3/IAS 36. The book values of material goodwill allocated to cash generating units Carve-out Europe and France amount to 291,887k (2009/2010: 291,681k) and 22,317k (2009/2010: 22,317k), respectively.
Leasing. A lease is an agreement whereby the lessor assigns to the lessee the right to use an asset for an agreed period of time in return for a payment or series of payments. Leases are classified as either finance or operating leases. Leasing transactions that transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee are classified as finance leases. All other leasing agreements are classified as operating leases.
Where Wincor Nixdorf is the lessor in an operating lease, the lease payments received are recognized in income. The leased asset remains on the balance sheet of the lessor. Where Wincor Nixdorf is the lessee in an operating lease, the lease payments are expensed. Where Wincor Nixdorf is the lessor in a finance lease, the net investment in the lease is reflected in sales and a leasing receivable is recognized. The lease payments received are divided into the principal portion and the interest income using the effective-interest method. Where Wincor Nixdorf is the lessee in a finance lease, the leased asset is capitalized at the lower of the fair value or present value of the minimum lease payments at the beginning of the lease term, and simultaneously recognized under financial liabilities. The minimum lease payments essentially comprise financing costs and the principal portion of the remaining obligation. The leased asset is depreciated by the straight-line method over the estimated useful life or the shorter lease term. The lease payments to be made are divided into the principal portion and the interest expense using the effective-interest method.
R e wo rka bl e S e rv i c e Pa rts a n d C u rre n t Inve n to ri e s . Reworkable service parts and current inventories are
valued at purchase or production cost, or at lower net realizable value. The purchase cost of reworkable service parts, raw materials, supplies and merchandise is calculated using the average valuation method. In accordance with IAS 2 Inventories, pro-rata material costs and production overheads (assuming normal utilization), including depreciation on production equipment and production-related social security costs, are included along with production material and production wages in the production cost of reworkable service parts and finished and unfinished products. Interest on loan capital is not capitalized.
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Write-downs for inventory risks are undertaken to an appropriate and adequate extent. Lower net realizable values are used where required. The net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. If the reasons for a lower valuation no longer apply to inventories that have formerly been written down and the net selling price has therefore risen, the reversal of the write-down is recognized in the Group income statement as a reduction of cost of sales. As of the balance sheet date, there were no substantial orders that would require capitalization in accordance with IAS 11 Construction Contracts.
O t h er Re ceivables and Liabilities. Non-financial assets and liabilities as well as accrued items and advance payments are carried at amortized costs.
F i n a ncial Instruments. B a s i c Information. Financial assets are recognized if Wincor Nixdorf has a contractual right to receive cash or another financial asset from another party. Financial liabilities are recognized if Wincor Nixdorf has a contractual obligation to transfer cash or other financial assets to another party. Purchases and sales of financial assets are basically recognized as of the settlement date. However, purchases and sales of securities are accounted for with the settlement price and derivatives with the acquisition costs at trade date. Financial assets and liabilities are initially measured at fair value. The carrying amount of financial instruments that are not measured at fair value through profit or loss in subsequent periods includes also the directly attributable transaction costs. Wincor Nixdorf does not use the option to categorize financial assets or financial liabilities at fair value through profit or loss (Fair Value Option (FVO)) when initially recognized, with the exception of the issue described in Notes 10 and 21 .
Subsequent measurement of financial instruments recognized in the Group accounts is in line with the measurement categories defined in IAS 39 Financial Instruments: Recognition and Measurement: Financial Asset at Fair Value through Profit or Loss (FVO and held for trading [HfT]): fair value Held-to-Maturity Investments (HtM): amortized costs Loans and Receivables (LaR): amortized costs Available-for-Sale Financial Assets (AfS): fair value Financial Liabilities (FLAC): amortized costs There were no reclassifications between the different IAS 39 measurement categories in the year under review. Financial assets and liabilities are reported without being offset. They are only offset when there is a legal right to do so and the enterprise intends to settle them on a net basis. The recognized carrying amount of current financial assets and liabilities is an appropriate estimate of the fair value. In accordance with IAS 39, an impairment loss is recognized when there are substantial, objective indications of impairment of a financial asset. The carrying amounts of financial assets not carried at fair value through profit and loss are examined for impairment requirements both individually (specific allowances for impairment losses) and in groups with similar default risk profiles (specific impairment allowances calculated on a portfolio basis). Objective evidence includes, for example, considerable financial difficulty of the debtor obligor, disappearance of an active market, and significant changes in the technological, market, economic, or legal environment. A significant or prolonged decline in fair value of an equity instrument is an objective evidence of impairment. The expenses are recorded in profit and loss under the functional cost headings. Appropriate risk provisioning was recognized for all discernible risks of default. The theoretically maximum remaining risk of default of financial assets is therefore the same as their recognized carrying amounts.
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Financial assets are derecognized when the contractual rights to cash flows end, or substantially all the risks and rewards of ownership are transferred to another party. Financial liabilities are derecognized when the contractual obligation is settled or legally revoked. Net gains and losses from financial instruments essentially include changes of write-downs and foreign currency valuation effects recognized in net profit on operating activities and interest income and expenses recognized in the financial result. For information on risk management please refer to Note 21 and/or to the risk reporting in the Group Management Report.
Inve stments and Investments Acc ounte d fo r Using the Equity Method. IAS 39 divides these finan-
Other Receivables and Other Assets comprise both non-financial assets and financial assets including derivative financial instruments. With the exception of derivative financial instruments, financial assets are measured at fair value plus directly attributable transaction costs at first-time recognition. They are assigned to the loans and receivables category under IAS 39, and are therefore initially measured at fair value and at amortized cost using the effective-interest rate method in subsequent periods. Non-financial assets are measured in line with the respective applicable standard.
C a s h a n d C a s h E q u i va l e nts . Cash and cash equiva-
cial instruments into the categories of financial assets at fair value through profit or loss, held to maturity, available for sale, or loans and receivables. Investments are classified as financial assets at fair value through profit or loss if their fair value can be measured reliably. If this is not possible, investments are categorized as available for sale and measured at historical costs. Loans are credits that are classified as loans and receivables according to IAS 39. Measurement in subsequent periods is at amortized cost using the effective-interest rate method. For information on investments accounted for using the equity method, please refer to chapter Methods of Consolidation.
Receivables and Other Assets. Receivables and other assets are sub-classified into Trade Receivables and Other Receivables and Other Assets. First-time recognition of Trade Receivables is at fair value plus directly attributable transaction costs. Measurement in subsequent periods is at amortized cost using the effective-interest rate method due to the loans and receivables measurement category.
lents include marketable securities as well as cash in hand and cash at bank (including checks). Cash on hand and bank balances are measured at fair value plus directly attributable transaction costs at first-time recognition. They are assigned to the loans and receivables category under IAS 39, and are therefore measured at amortized cost in subsequent periods using the effective-interest rate method. Foreign currency stocks are valued at their mid-price on the balance sheet date. Bank balances and securities included in cash and cash equivalents have a remaining term of up to three months on acquisition. At Wincor Nixdorf, securities are principally allocated to the categories financial assets at fair value through profit or loss or available for sale. Both categories are initially and subsequently measured at fair value. In order to determine the fair value of marketable securities at the balance sheet date, respective quotations of banks have been obtained and market prices of trading systems have been used. Changes in value of the securities classified as financial assets at fair value through profit or loss are recorded in finance income and finance costs. Changes in securities classified as available for sale are shown within equity under consideration of deferred tax effects. At the selling date, realized gains or losses are recorded in finance income or finance costs.
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F i n a ncial Liabilities. Primary financial instruments include financial liabilities, trade payables and non-derivative other financial liabilities. Trade payables and non-derivative other financial liabilities include amounts for outstanding invoices and deferred staff liabilities. In accordance with IAS 39, primary financial liabilities are stated at fair value at initial recognition, considering directly attributable transaction costs. Measurement in subsequent periods is at amortized cost using the effective-interest rate method. Derivative Financial Instruments. Derivative financial instruments of the Group comprise hedging instruments used to manage interest rates and exchange rate fluctuations. These instruments serve to reduce income volatility. No derivatives are held for trading purposes. Nevertheless, derivatives not meeting the requirements for cash flow hedge accounting in accordance with IAS 39, or for which the hedged item no longer exists, are classified as held for trading. The scope of hedge accounting by financial derivatives comprises recognized, pending and highly probable hedged items. In accordance with IAS 39, derivatives meet the recognition criteria for assets and liabilities, as a result of which they must be capitalized (other assets) or expensed (other liabilities) at fair value. Derivative transactions are accounted for at acquisition cost at the trading date, in general, acquisition costs of derivative transactions equal their fair values at that date. In subsequent periods, they are capitalized at their fair values. Resultant profits or losses flow through to profit for the period in question where the requirements for cash flow hedge accounting are not met. If hedging relationships are effective, the amounts of profit are under consideration of deferred tax effects credited (and losses charged) to equity, with no effect on accounting profit. The reclassification from equity to Group income statement takes place when the hedged item is recognized in income, or is no longer expected to occur.
Ac c ru a l s for Pe ns i o n s a n d S i m i l a r C o m m i tm e n ts . Accruals in respect of beneficiaries and pensioners
pension obligations are created using the projected unit credit method. This method takes account not only of known pensions and known earned future pension entitlements at the balance sheet date, but also of expected future increases in pensions and salaries having estimated the relevant influencing factors. According to IAS 19.78, the discount rate used to discount accruals for pensions and similar commitments has to be determined at each valuation date. The discount rate is based on the market yields on high-quality corporate bonds and with that at low-risk. The terms of the corporate bonds have to be consistent with the estimated terms of the obligations. Pension expenses are recorded immediately in the relevant years profit for the period in the functional cost headings. Actuarial gains and losses are fully recognized in the fiscal year in which they occur. They are reported as a component of other comprehensive income in the statement of comprehensive income. They remain outside profit or loss in subsequent periods as well. In June 2006, Wincor Nixdorf created plan assets according to IAS 19 as part of a Contractual Trust Arrangement (CTA), by transferring assets to a registered association (Wincor Nixdorf Pension Trust e. V.) in order to fund pension obligations to employees. Plan assets measured at fair value are netted with directly related pension obligations. A negative net obligation arising from prepaid future contributions is only recognized as an asset to the extent that a cash refund from the plan or reductions of future contributions to the plan are available (asset ceiling). Any exceeding amount is recognized in equity in the period when it is incurred.
Other Accruals. Other accruals are created on the balance sheet in respect of legal or actual obligations to third parties resulting from past events, as well as for onerous contracts where the outflow of funds to settle such obligations is probable and can be estimated reliably.
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Other accruals are measured in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets or, where applicable, IAS 19 Employee Benefits. The values used for such accruals are based on the best estimate. Where required, accruals are stated net of unaccrued interest. Claims for reimbursements from third parties are capitalized separately if their realization is virtually certain.
Share-based Payment Transactions. Share options, i.e., share-based payment transactions settled by the issuance of equity instruments, are measured at fair value at the grant date. The fair value of the obligation is recognized during the vesting period as a personnel expense and in equity. The fair value is obtained using the internationally recognized BlackScholes-Merton-formula.
NOTES TO TH E GROUP INC OM E STATEM ENT.

1 N e t Sa l e s . Net sales are comprised as follows:
k 2010/2011 2009/2010
Hardware Software/Services
1,159,254 1,168,946 2,328,200
1,140,179 1,099,292 2,239,471
2 Gross Profit. Gross margin on net sales has fallen by 0.6 percentage points to 24.5% compared to the previous years equivalent figure (2009/2010: 25.1%). The decline in the gross margin was mainly attributable to mix-specific factors and lower economies of scale, as well as continuing price pressure. The foreign currency gains and losses of 6,839k (2009/ 2010: 329k) shown in the Group income statement are essentially comprised within the cost of sales. 3 S e l l i ng, G e n e ra l a n d Ad m i ni s trat io n E xpenses. These mainly comprise personnel expenses and gen-
eral costs in selling and administrative departments, plus miscellaneous taxes.

4 O th e r O p e ra ti n g I nc om e a nd E x p e n s e s .
Other operating income of 210k (2009/2010: 556k) and other operating expenses of 158k (2009/2010: 0k) include various items which are individually immaterial.
5 F i na nc e I n c o m e a n d F i na nc e Cos t s . Finance
income and finance costs are comprised as follows:

k 2010/2011 2009/2010
Income from securities and other income Interest and similar income Finance income Interest and similar expenses Interest element within additions to long-term accruals and other finance costs Finance costs
225 1,680 1,905 7,527 1,295 8,822 6,917
142 1,329 1,471 6,079 1,407 7,486 6,015
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6 I ncome Ta xe s.
k 2010/2011 2009/2010
Ongoing taxes on income and profit Deferred tax income and expenses
38,753 8,397 47,150
46,351 3,387 49,738
The amounts shown above for ongoing taxes on income and profit relate, within Germany, to corporate income tax and municipal corporate income tax, plus proceeds from partial release of tax accruals made during the previous year and, in the case of foreign subsidiaries, income-related taxes calculated in accordance with the national tax legislation applicable to the individual companies. Since the tax deductible amount exceeds the accumulated settlement charge of the stock option program 2009, the resulting tax benefit of 2,828k (2009/2010: 0k) has been recognized directly in equity. The deferred taxes are the result of time-related variances in reported values between the tax accounts of individual companies and the values of the Group balance sheet, using the liability method, plus capitalization of tax losses capable of being carried forward. In reviewing the amount of a deferred tax asset recognized in the balance sheet, it is crucial to assess whether it is probable that temporary differences will reverse and tax losses carried forward will be utilized, being the basis for the recognition of deferred tax assets. This is dependent on
future taxable profits arising in those periods when taxable temporary differences reverse and tax losses carried forward may be utilized. Based on past experience and the projected development of taxable profit, Wincor Nixdorf assumes that the corresponding benefits associated with deferred tax assets will be realized. A deferred tax asset will be recognized to the extent that it is probable that future taxable profit will allow the deferred tax asset to be recovered. As of September 30, 2011, tax losses carried forward in the amount of 14,328k (2009/2010: 20,681k) and temporary differences in the amount of 2,787k (2009/2010: 4,700k) on which no deferred tax asset has been capitalized. Tax losses amounting to 8,808k for which no deferred tax assets were recognized accounts for the period until 2021. Any dividends payable in the future of Wincor Nixdorf AG will have no effect upon the Groups tax charges. Actual tax expenses are 518k (2009/2010: 2,873k) above those which would be expected to be arrived at through the application of the ultimate parent companys tax rate. As of September 30, 2011, unchanged to the previous year, all German deferred taxes were calculated in respect of temporary differences using a combined tax rate of rounded 30%. The reported value of all deferred taxes on tax losses carried forward was arrived at by using tax rates as, in the previous year, of 14% for municipal corporate income tax and 16% for corporation tax and solidarity tax. The table below contains a reconciliation of expected net tax expenses to the actual reported tax:
k 2010/2011 2009/2010
Profit before income taxes Expected tax expenses based on a tax rate of 30% Differences from expected tax expenses Difference from local tax rates Increases/decreases in tax due to tax-exempt income and non-tax-deductible expenses Corrections relating to other periods and other effects Changes of allowances/non-recognition of deferred taxes on current losses and temporary differences Usage of deferred tax assets not recognized in previous years Others Total adjustments Actual tax expenses
155,439 46,632 5,360 4,581 4,711 1,781 1,176 457 518 47,150
156,215 -46,865 5,514 4,837 561 3,397 0 408 2,873 49,738
The effective tax rate is 30.3% (2009/2010: 31.8%).
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The deferred tax assets and liabilities relate to the following balance sheet items:
k Sept. 30, 2011 Deferred tax assets Deferred tax liabilities Sept. 30, 2010 Deferred tax assets Deferred tax liabilities
Intangible assets Property, plant and equipment Investments Inventories Receivables and other current assets Pension accruals Other accruals Liabilities Losses carried forward Netting off of deferred tax assets and liabilities
65 3,539 161 13,834 1,948 7,591 23,481 5,872 1,540 58,031 30,916 27,115
51,787 1,855 9 1,090 2,153 486 1,208 321 0 58,909 30,916 27,993
83 2,988 21 16,660 3,003 8,810 25,417 3,176 1,455 61,613 35,596 26,017
47,355 2,212 0 677 903 460 1,162 412 0 53,181 35,596 17,585
7 Ea rnings per Share. Basic earnings per share are calculated by dividing profit or loss attributable to shareholders of Wincor Nixdorf AG by the weighted average number of
shares outstanding. Diluted earnings per share additionally reflect the potential dilution that would occur if stock option plans (Note 1 6 ) were exercised.
2010/2011 2009/2010
Profit attributable to equity holders of Wincor Nixdorf AG (k) Number of shares outstanding as of October 1 (in thousands) Number of shares outstanding as of September 30 (in thousands) Weighted average number of shares outstanding (in thousands) Basic earnings per share () Number of potentially dilutive ordinary shares (in thousands) Weighted average number of shares used to compute diluted earnings per share (in thousands) Diluted earnings per share ()
107,118 31,371 29,776 30,795 3.48 31 30,826 3.47
106,189 31,664 31,371 31,653 3.35 37 31,690 3.35
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NOTE S TO T HE G ROUP BA L A NC E SH E E T.
8 I nta ngible Assets. Changes in intangible assets
were as follows:
k Commercial patents and similar rights/ items plus licenses to such rights/items
Product know-how
Goodwill
Total
Cost of acquisition or production Balance as of October 1, 2009 Currency translation Additions Disposals Balance as of September 30, 2010/October 1, 2010 Currency translation Changes in consolidation group Additions Transfers Disposals Balance as of September 30, 2011 Amortization Balance as of October 1, 2009 Currency translation Amortization for the fiscal year Impairment Disposals Balance as of September 30, 2010/October 1, 2010 Currency translation Changes in consolidation group Amortization for the fiscal year Transfers Disposals Balance as of September 30, 2011 Carrying amount as of September 30, 2011 Carrying amount as of September 30, 2010 43,269 1,267 10,871 1,420 9,248 47,579 830 52 9,974 17 17,314 41,034 19,142 18,374 206,664 0 0 0 0 206,664 0 0 774 0 206,664 774 1,366 0 3,165 0 0 0 0 3,165 0 0 0 0 0 3,165 333,858 333,629 253,098 1,267 10,871 1,420 9,248 257,408 830 52 10,748 17 223,978 44,973 354,366 352,003 68,226 1,850 5,125 9,248 65,953 836 2,442 8,218 63 17,336 60,176 206,664 0 0 0 206,664 0 2,140 0 0 206,664 2,140 336,071 723 0 0 336,794 229 0 0 0 0 337,023 610,961 2,573 5,125 9,248 609,411 1,065 4,582 8,218 63 224,000 399,339
During fiscal 2010/2011, the acquisitions, which mainly relate to commercial patents and licenses for Outsourcing projects and own infrastructure, resulted in additions of 8,218k (2009/
2010: 5,125k). Impairment losses of previous year pertained to the operating segment Retail and were mainly recognized in the cost of sales.
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9 Pro perty, Plant and Equipment. Changes in
property, plant and equipment were as follows:

k Land, buildings, and other equivalent rights Other fixed assets and office equipment Equipment under construction
Plant and machinery
Products leased to customers
Total
Cost of acquisition or production Balance as of October 1, 2009 Currency translation Additions Transfers Disposals Balance as of September 30, 2010/October 1, 2010 Currency translation Changes in consolidation group Additions Transfers Disposals Reclassifications Balance as of September 30, 2011 Depreciation Balance as of October 1, 2009 Currency translation Depreciation for the fiscal year Impairment Transfers Disposals Balance as of September 30, 2010/October 1, 2010 Currency translation Changes in consolidation group Depreciation for the fiscal year Impairment Transfers Disposals Reclassifications Balance as of September 30, 2011 Carrying amount as of September 30, 2011 Carrying amount as of September 30, 2010 18,368 366 2,605 7 12 62 21,296 47 43 2,644 0 14 814 0 23,230 32,001 33,494 38,414 542 3,234 4 0 860 41,334 272 177 2,999 0 2 2,010 0 42,416 18,680 19,271 138,587 2,246 32,371 175 13 14,550 158,816 796 1,713 35,579 89 42 15,802 3 177,720 78,867 81,518 2,564 254 1,646 0 1 42 4,423 52 0 2,160 0 13 112 3 6,539 7,242 6,708 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14,028 12,322 197,933 3,408 39,856 186 0 15,514 225,869 1,167 1,847 43,382 89 17 18,738 0 249,905 150,818 153,313 53,182 784 727 167 70 54,790 76 57 1,150 197 1,039 0 55,231 58,147 842 2,512 0 896 60,605 400 239 2,263 102 2,035 0 61,096 203,387 3,100 31,970 17,013 15,136 240,334 923 2,614 24,267 10,460 16,765 18 256,587 8,228 463 2,494 0 54 11,131 77 0 2,745 0 190 18 13,781 20,839 0 8,665 17,180 2 12,322 8 282 12,802 10,822 0 0 14,028 343,783 5,189 46,368 0 16,158 379,182 1,484 3,078 43,227 63 20,029 0 400,723
Additions to property, plant and equipment are valued at 43,227k (2009/2010: 46,368k), with large individual elements of this being other fixed assets and office equipment at 24,267k (essentially IT equipment and specialist tools), and equipment under construction at 12,802k, mainly the result of specialist tools.
Products leased to customers concern automated teller machines, which are leased in the scope of operating lease contracts. The minimum lease periods are between three and ten years, with extension options in existence under identical terms. The future minimum lease payments under non-redeemable lease agreements are as follows:
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k Sept. 30, 2011 Sept. 30, 2010 2010/2011
k 2009/2010
Residual term up to 1 year Residual term between 1 and 5 years Residual term more than 5 years
4,225 9,957 1,949 16,131
3,489 9,846 1,944 15,279
Net sales Net income
9,319 127
2,435 52
10 Inve stments and Investments Accounte d fo r Using the Equity Method. Among investments,
interests, loans, and other receivables are recorded. The interest in WINCOR NIXDORF Immobilien GmbH & Co. KG, Paderborn, is unchanged to previous year accounted for Financial assets at fair value through profit or loss (FVO) since the fair value can be measured reliably. The measurement at fair value showed a decrease in the fair value of 1k as of September 30, 2011, in contrast to the previous year (2009/2010: 0k), the net book value amounts to 1,060k as of September 30, 2011 (2009/2010: 1,061k). This investment does not have a quoted market price in an active market; therefore existing contractual settlements were used in order to calculate the fair value. The following tables show the summarized financial information of the Groups joint ventures. The information given represents the Groups interests in the joint ventures:
k Sept. 30, 2011 Sept. 30, 2010
In the period under review, the result from equity-accounted investments including the elimination of prorated intra-Group profits amounting to 378k (2009/2010: 53k) includes the result of CI Tech Components AG, Burgdorf, Switzerland, for the first time (for the period July 1 until September 30, 2011) as well as unchanged from the previous year the result of WINSERVICE AS, Oslo, Norway.
11 Reworkable Service Parts. Where necessary, the lower net realizable value was used, with due regard to selling and production costs still to be incurred. The total book value of reworkable service parts, valued as of September 30, 2011, at their lower of cost and net realizable value, was 24,885k (2009/2010: 21,559k). Write-down of reworkable service parts reported under cost of sales is 8,701k (2009/2010: 8,628k). 1 2 Re c e i va bl e s a n d O th e r A s s e ts . Trade receiv-
ables are comprised as follows:

k Sept. 30, 2011 Sept. 30, 2010
Trade receivables, gross less: allowance for doubtful accounts Trade receivables, net
405,214 15,562 389,652
359,729 17,057 342,672
Current assets Non-current assets Current liabilities Non-current liabilities
23,833 2,427 8,851 1,285
718 16 1,198 0
Trade receivables with an amount of 2,572k (2009/2010: 1,995k) become due after one year. Allowances for trade receivables have changed as shown in the following table:
k Portfolio-based allowances 2010/2011 2009/2010 Total 2010/2011 2009/2010
Specific allowances 2010/2011 2009/2010
Balance as of October 1 Changes in allowances with effect on profit and loss Balance as of September 30
13,797 1,184 12,613
13,685 112 13,797
3,260 311 2,949
3,056 204 3,260
17,057 1,495 15,562
16,741 316 17,057
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On the balance sheet date trade receivables, which are past due but not impaired, exist as follows:
k Past due 130 days Past due 31180 days Past due more than 180 days
Other receivables and other assets comprise the following:

k Sept. 30, 2011 Total Due >1 year Sept. 30, 2010 Total Due >1 year
September 30, 2011 September 30, 2010
46,655 37,687
29,330 37,980
339 2,026
Receivables from related companies Current income tax assets Other assets
8,091 6,829 51,036 65,956
0 0 5,738 5,738
281 3,726 62,384 66,391
0 0 7,804 7,804
With respect to trade receivables not past due and not impaired, or past due but not impaired, based on credit history and current credit ratings, there are no indications that customers will not be able to meet their obligations. Trade receivables comprise receivables from finance leases in the amount of 6,564k (2009/2010: 3,073k). The leasing contracts are originally concluded for a term of up to ten years. There was no impairment requirement on finance lease receivables in fiscal 2010/2011 and 2009/2010.
Residual Terms of Present Value o f Minimum Lease Payments Receiva b l e .
Sept. 30, 2011
Other assets include the following items:

k Sept. 30, 2011 Total Due >1 year Sept. 30, 2010 Total Due >1 year
Sales tax Surplus of plan assets Forward currency transactions Receivables from employees Prepaid expenses Other
18,183 1,485 608 936 19,443 10,381 51,036
0 1,485 0 60 2,473 1,720 5,738
16,690 923 2,929 949 23,453 17,440 62,384
0 923 0 93 5,438 1,350 7,804
k Sept. 30, 2010
Residual term up to 1 year Residual term between 1 and 5 years Residual term more than 5 years
4,838 1,726 0 6,564
1,078 1,895 100 3,073
Residual Terms of Total Gross Inve stment in the Lease.

Sept. 30, 2011
Other assets include other financial assets in the amount of 7,773k (2009/2010: 16,196k). Further explanatory notes on the other financial assets are to be found in Note 2 1 ).
1 3 D e fe rre d Ta xe s . Deferred taxes have been accrued for under the temporary concept in accordance with IAS 12 Income Taxes, using the tax rates in force, approved, and known, as of the balance sheet date. As of September 30, 2011, these items include deferred tax assets of 27,115k (2009/2010: 26,017k) and deferred tax liabilities of 27,993k (2009/2010: 17,585k), after netting off deferred tax liabilities with deferred tax assets. Deferred tax assets of 1,540k (2009/2010: 1,445k) are the result of the probable future utilization of tax losses carried forward. Further explanatory notes on deferred tax assets are contained in Note 6 .
k Sept. 30, 2010
Residual term up to 1 year Residual term between 1 and 5 years Residual term more than 5 years Unearned finance income Present value of minimum lease payments receivable
5,162 1,899 0 497 6,564
1,319 2,130 102 478 3,073
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1 4 Inve ntorie s.
k Sept. 30, 2011 Sept. 30, 2010
Raw materials and supplies Unfinished goods Finished goods and merchandise Advances made
79,657 24,661 159,870 1,622 265,810
77,385 21,663 187,314 1,663 288,025
Where necessary, the lower net realizable value was used, with due regard to selling and production costs still to be incurred. The total book value of inventories valued as of September 30, 2011, at their lower of cost and net realizable value, was 69,164k (2009/2010: 70,422k). Inventory impairment reported under cost of sales is 3,891k (2009/2010: 7,331k).
1 5 Ca sh a nd Ca sh Equivalents. The cash in hand of 1,840k (2009/2010: 3,115k) mainly includes test cash for automated teller machines. Bank balances, including payments en-route, are 19,893k (2009/2010: 16,351k). Checks amount to 413k (2009/2010: 493k). 1 6 Group Equity. The changes in Group equity and individual elements thereof are shown in detail in the Changes in Group Equity table. D i s t ributions. Wincor Nixdorf remains committed to the existing dividend policy: as regards the dividend for fiscal 2010/ 2011, profit for the period in the amount of 108,289k will again form the basis for dividend calculations. The aim is to distribute around 50% of this amount to shareholders in the form of a dividend. For the reporting period a dividend of 1.70 per qualifying share will be proposed to the Supervisory Board. This corresponded to a total distribution of 50,620k on the date on which the Group financial statements were released by the Board of Directors. Based on the closing share price as of September 30, 2011, the dividend yield is 5.0 %. The dividend will be paid out on January 24, 2012, subject to the approval of the Annual General Meeting (in the following AGM).
Under the German Stock Corporation Act (AktG), the dividend payment is determined by the distributable profit reported in the annual financial statements of Wincor Nixdorf AG, which are prepared according to the German Commercial Code. As of September 30, 2011, the consolidated profit of Wincor Nixdorf AG amounted to 198,295k. The undistributed portion of consolidated profit, amounting to 147,675k, will be carried forward to new account. The amount of 53,149k (1.70 per share) was distributed in fiscal 2010/2011 to Wincor Nixdorf AG equity holders.
Ca pi ta l M a na ge m e n t. As a matter of principle, Wincor Nixdorf pursues the goal of generating an appropriate return on invested capital. However, the Groups reported equity serves merely as a passive management parameter, with sales and EBITA applied as active management parameters. As described above, about half of the profit for the period is paid out as dividend. The remaining amount is reserved. S u b s c ri be d C a p i ta l . The capital stock is divided into 33,084,988 no-par shares (Stckaktien governed by German law). All shares issued up to and including September 30, 2011, are fully paid-up. Each share is granted equal voting rights and equal dividend entitlement. Changes in the number of shares issued and entitled to dividend were as follows:
As of October 1 Purchase of treasury shares Issuance/disposal of treasury shares As of September 30 Weighted average of shares in fiscal 2010/2011 31,370,717 1,844,278 250,051 29,776,490 30,794,719
Tre a s u ry S h a re s . On August 2, 2010, the Board of Direc-
tors of Wincor Nixdorf AG passed a resolution for the repurchase, as from August 3, 2010, of up to 400,000 of the Company's shares via the stock exchange. In doing so, it availed itself of the authorization granted by the AGM on January 25, 2010. In the case of the approved repurchase of own shares by the Company, the purchase price per share (excluding ancillary costs of purchase) shall deviate by no more than 10% in either
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direction from the average share price at the closing auction of XETRA trading on the Frankfurt Stock Exchange, for the final 10 trading days prior to the purchase of the shares. The repurchased shares are to be used for all legitimate purposes and for those covered by the authorization issued by the AGM, in particular, for the purpose of settling obligations arising from share options already issued or to be issued to members of the Board of Directors, other managers, or staff members of the Company and/or subordinated affiliated entities on the basis of the authorization granted for the issuance of share options. Between October 1, 2010, and October 6, 2010, 106,709 shares were bought at an average price of 48.17. The acquisition costs, including ancillary costs of acquisition to the amount of 4k, amounting to 5,144k were deducted in full from equity. Between August 3, 2010, and October 6, 2010, 400,000 shares were bought at an average price of 47.88. The acquisition costs, including ancillary costs of acquisition to the amount of 9k, amounting to 19,161k were deducted in full from equity. The vesting period for the 2009 share-based payment program expired on March 13, 2011. Of the 500,770 share options issued 478,500 have been exercised. The share options were redeemed by the allocation of 250,051 treasury shares. With the consent of the Supervisory Board, on May 3, 2011, the Board of Directors of Wincor Nixdorf AG passed a resolution for the repurchase up to 1,737,569 of the Companys shares via the stock exchange during the period from May 4 to September 30, 2011, thus making use of the authorization granted by the Annual General Meeting on January 24, 2011. In the case of the approved repurchase of own shares by the Company, the purchase price per share (excluding ancillary costs of purchase) shall deviate by no more than 10% in either direction from the determined share price in the opening auction of XETRA trading on the Frankfurt Stock Exchange. The repurchased shares are to be used for all legitimate purposes and for those covered by the authorization issued by the AGM, in particular, for the purpose of settling obligations arising from share options to be issued on the basis of the authorization granted by the Annual General Meeting on January 25, 2010 to members of the Board of Directors, other managers, or staff members of the Company and/or subordinated affiliated entities. Between May 4, 2011, and June 16, 2011, 1,737,569 shares were bought at an average price of 48.35. The acquisition costs, including ancillary costs of acquisition to the amount of 25k, amounting to 84,044k were deducted in full from equity.
As of September 30, 2011, the total number of treasury shares held by the Company was 3,308,498. This equals 9.99% of the subscribed capital. The acquisition costs, including ancillary costs of acquisition to the amount of 113k, amounting to 175,823k were deducted in full from equity.
Authorized Share Capital. As the result of a resolution
at the AGM on January 19, 2009, the Board of Directors has been authorized to increase the Companys share capital with the Supervisory Boards approval by up to 3,308,498.00 (Authorized Share Capital I 2009), through the issue for cash of new ordinary bearer shares under single or multiple initiatives up to January 18, 2014. The Board of Directors was also authorized by resolution of the AGM on January 19, 2009, to increase the Companys share capital with the Supervisory Boards approval by up to 13,233,996.00 (Authorized Share Capital II 2009), through the issue for cash and/or contributions in kind of new ordinary bearer shares under single or multiple initiatives up to January 18, 2014.
C o n ti n ge nt S h a re Ca pi ta l . The share capital is conditionally increased by up to 1,654,249.00, divided into up to 1,654,249 bearer shares (Contingent Capital I 2010). This Contingent Capital increase is to be used exclusively to cover stock options issued to members of the Companys Management Board, board members of subordinate associated companies within and outside of Germany, and to other executives and employees of the Company and its subordinate associated companies, as specified in detail in the authorization resolved by the Annual General Meeting on January 25, 2010. It shall only be effected to the extent that bearers of share options exercise their right to subscribe for Company shares and the Company does not provide the consideration in cash or by means of its own shares. The new shares shall carry dividend rights from the beginning of the fiscal year in which they are issued. Should the issue take place before the ordinary Annual General Meeting, the new shares shall be entitled to dividends for the previous fiscal year as well.
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The share capital is conditionally increased by up to 10,000,000.00 (in words: ten million euros), divided into up to 10,000,000 bearer shares (Contingent Share Capital II). The Conditional Capital increase to create Contingent Share Capital II shall be carried out only insofar as the holders of option or conversion rights, or the parties who have conversion/option obligations from participatory certificates with warrants and/ or convertible participatory certificates and/or bonds with warrants and/or convertible bonds that are issued or guaranteed up to January 27, 2013, by the Company or a dependent group company of the Company within the meaning of Section 17 German Stock Corporation Act (AktG), pursuant to the authorization adopted by the AGM on January 28, 2008, make use of their option or conversion rights or, if they have conversion/option obligations, fulfill their conversion/option obligation. The new shares shall be issued at the option or conversion price to be defined in accordance with the above authorization adopted. The new shares shall carry dividend rights from the beginning of the fiscal year in which they are issued pursuant to the exercise of option and conversion rights or fulfillment of option or conversion obligations. If they are issued before the ordinary AGM, the new shares shall be entitled to dividends for the previous fiscal year as well. The Board of Directors is authorized, with the consent of the Supervisory Board, to define the further details of the Conditional Capital increase.
Au t horization to issue participatory certif i cates with warrants and/or convertible partici p a tory ce rtifica tes and/or convertible bond s a n d /or bonds with warrants and/or incom e b o n ds and to e xclude the subscription righ t.
and instead of or in addition to issue bearer bonds with warrants and/or bearer convertible bonds and/or bearer income bonds (hereinafter referred to jointly as bonds with warrants and/or convertible bonds) with a maximum term of 20 years and to grant option rights to the holders of bonds with warrants and conversion rights to the holders of convertible bonds to bearer shares in the Company as detailed by the conditions of the bonds with warrants or convertible bonds. The aggregate principle amount of the participatory certificates with warrants and/or convertible participatory certificates and/or bonds with warrants and/or convertible bonds to be issued under this authorization shall not exceed 500,000,000.00. Option rights or conversion rights shall only be issued for Company shares that account for a maximum total of 10,000,000.00 of the capital stock. The Board of Directors was also authorized to exclude the subscription right of shareholders in certain cases. Further descriptions to the authorization and exclusion of the subscription right are made in the chapter DISCLOSURES PURSUANT TO SECTION 315 (4) HGB AND EXPLANATORY NOTES, which is part of the Group Management Report.
Retained Earnings. Other retained earnings contain the
cumulative profits made by the subsidiary companies included in the Group financial statements, the profit for the period, other consolidation reserves, reserves resulting from expired share-based payment programs, and actuarial gains and losses recognized in other comprehensive income, as well as corresponding deferred tax effects.
O the r Com pone nts of Equi ty. Other components of
The Board of Directors was authorized by the AGM on January 28, 2008, with the consent of the Supervisory Board, once or several times up to January 27, 2013, to issue bearer participatory certificates (i) to which bearer participatory certificates with warrants are attached or (ii) that are attached to a conversion right for the holder for a maximum term of 20 years as of their issue, and to grant option rights to the holders of participatory certificates with warrants and conversion rights to the holders of convertible participatory certificates to bearer shares in the Company as detailed by the conditions of the participatory certificates with warrants or convertible participatory certificates
equity consist of all amounts recognized directly in equity resulting from the translation of the financial statements of foreign subsidiaries, the effects of recognizing changes in the fair value of derivative financial instruments directly in equity, deferred taxes on items recognized directly in equity as well as the additional funds received from the issue of shares and the personnel expenses arising from the share-based payment programs 2010 and 2011 (2009/2010: share-based payment programs 2009 and 2010) for management members.
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Othe r Comprehensive Income. The table below presents the development of other comprehensive income and the associated tax effects: Tax Effects Other Comprehensive I n c o m e .
2010/2011 Gross result Taxes Net result Gross result 2009/2010 Taxes Net result k
Cash flow hedges Exchange rate changes Actuarial gains and losses Other comprehensive income
929 2,406 1,132 345
279 0 242 521
650 2,406 890 866
8,481 9,238 11,659 10,902
2,544 0 3,385 5,929
5,937 9,238 8,274 4,973
Share-based Payment Program. Wincor Nixdorf has
set up eight share-based payment programs for managers since 2004 (20042011). The following conditions have to be applied to programs 2008 and 2009: The vesting period of the share options is two years. Each share option entitles the bearer to purchase one share in the Company at the exercise price (strike price). There is no limit to the profit which can accrue upon purchase. In each case, the exercise price is equivalent to 110% of the average exchange price on the ten stock exchange trading days that immediately preceded the issue of stock options on April 8, 2008 (program 2008), respectively March 13, 2009 (program 2009) (program 2008: 55.33, program 2009: 36.18); it takes account of distributions made during the life of the options, such as dividend payments and any drawing rights or other special rights. The target criteria have not been subsequently lowered during the life of the programs up to now. In order to sign up to acquire, and later exercise, share options, employees must make a separate private investment in Company shares at a ratio of 1:10 (shares : share options), and such shares must be held by them for the entire holding period of two years. The share option must be exercised one-time at the end of the vesting period within a period of ten stock exchange trading days in XETRA on the Frankfurt Stock Exchange, commencing upon completion of the two-year vesting period (exercise period). The vesting conditions also stipulate that the declaration of exercise may or must be issued during the specified vesting period of two years,
within the last ten stock exchange trading days in XETRA on the Frankfurt Stock Exchange, effective from the end of the last day of the vesting period or a later date. The Company is entitled to settle the options either in shares or cash. Basically, the holder of the option has to remain in the Companys employ until the end of the vesting period. As of April 6, 2010, Wincor Nixdorf granted 563,000 share options for an exercise price of 56.38 under another sharebased payment program to its managers (share-based payment program 2010). The vesting period of the share options is four years. Each share option entitles the bearer to purchase one share in the Company at the exercise price (strike price). There is no limit to the profit which can accrue upon purchase. In each case, the exercise price is equivalent to 112% of the average exchange price on the 30 stock exchange trading days that immediately preceded the issue of stock options on April 6, 2010 (50.34); it takes account of distributions made during the life of the options, such as dividend payments and any drawing rights or other special rights. The target criteria have not been changed during the life of the program. In order to sign up to acquire, and later exercise, share options employees must make a separate private investment in Company shares at a ratio of 1:10 (shares : share options), and such shares must be held by them until at least the end of the exercise period. The options can be exercised within a period of ten stock exchange trading days commencing on the first stock exchange trading day following expiration of the holding period of four
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years (exercise period). The vesting conditions also stipulate that the declaration of exercise may or must be issued during the specified vesting period of four years, within the last 10 stock exchange trading days in XETRA on the Frankfurt Stock Exchange, effective from the end of the last day of the vesting period or a later date. The Company is entitled to settle the options either in shares or cash. Basically, the holder of the option has to remain in the Companys employ until the end of the vesting period. As of March 25, 2011 Wincor Nixdorf granted 641,167 share options for an exercise price of 67.33 under another sharebased payment program to its managers (share-based payment program 2011). The vesting period of the share options is four years. Each share option entitles the bearer to purchase one share in the Company at the exercise price (strike price). There is no limit to the profit that can accrue upon purchase. In each case, the exercise price is equivalent to 112% of the average exchange price on the 30 stock exchange trading days that immediately preceded the issue of stock options on March 25, 2011 (60.12); it takes account of distributions made during the life of the options, such as dividend payments and any drawing rights or other special rights. The target criteria have not been changed during the life of the program. In order to sign up to acquire, and later exercise, share options employees must make a separate private investment in Company shares at a ratio of 1:10 (shares : share options), and such shares must be held by them until at least the end of the exercise period. The options can be exercised within a period of ten stock exchange trading days commencing on the first stock exchange trading day following expiration of the holding period of four years (exercise period). The vesting conditions also stipulate that the declaration of exercise may or must be issued during the specified vesting period of four years, within the last 10 stock exchange trading days in XETRA on the Frankfurt Stock Exchange, effective from the end of the last day of the vesting period or a later date. The Company is entitled to settle the options either in shares or cash. Basically, the holder of the option has to remain in the Companys employ until the end of the vesting period.
The underlying assumptions for the programs 20082011 are as follows:

Program 2008 Program 2009 Program 2010 Program 2011
Granted share options Fair value of the option at grant date Exercise price of the option at grant date Expected volatility Option life Expected dividends Risk-free interest rate Fluctuation rate
496,830 500,770 563,000 641,167 10.10 55.33 40.6% 2 years 4.36 4.638% 3.2% 7.65 36.18 49.1% 2 years 4.56 1.97% 3.1% 9.80 56.38 27.2% 4 years 6.95 2.128% 2.9% 9.73 67.33 24.5% 4 years 7.83 2.814% 2.8%
Share options reported as of September 30, 2011, only consist of options from share-based payment programs 2010 and 2011. The program 2010 will expire in April 2014, the program 2011 in March 2015. The weighted average residual term of both programs is about three years. The vesting period for the 2009 share-based payment program expired on March 13, 2011. Of the 500,770 share options issued 478,500 have been exercised. The weighted average share price at the date of exercise was 61.19 (unweighted average price on the 10 stock exchange trading days before the exercise date March 13, 2011). The share options were redeemed by the allocation of 250,051 treasury shares. The expenses incurred have been charged directly against equity, with no effect on accounting profit. From this, there was no change to the total number of shares issued. The fair values of the options have been calculated by the application of the Black-Scholes-Merton-formula by an external expert. For the programs 2010 and 2011, the expected volatility is the average of the historic volatilities of EUREX options on the Wincor Nixdorf share for 3-month and 12-month periods.
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The changes in the composition of share options are as follows:
2010/2011 Average exercise price Number
2009/2010 Average exercise price
17 N on- c o n tro l l i ng I n te re s ts . Non-controlling interests are presented in detail in the Changes in Group Equity table. 18 Ac c ru a l s fo r Pe ns i o n s a nd S i m i la r C o m m i tm e nts .
k Sept. 30, 2011 Sept. 30, 2010
Number
As of October 1 Granted during the period Exercised during the period Expired during the period As of September 30 Exercisable as of September 30
1,042,500 641,167 478,500 40,500 1,164,667 0
46.98 67.33 36.18 55.30
983,830 563,000 0 504,330
45.62 56.38 54.81 46.98
Present value of unfunded obligations Present value of funded obligations Fair value of plan assets Past service cost not included in profit and loss Net liabilities Therein amount recognized as asset Accruals for pensions and similar commitments
14,882 198,096 190,756 698 22,920 1,485 24,405
15,005 202,001 195,481 750 22,275 923 23,198
62.33 1,042,500 0
During the fiscal year, personnel expenses in connection with the share-based payment programs amounted to 2,660k (2009/ 2010: 3,577k). The additional paid-in capital has been increased by this amount. However, personnel expenses in connection with the share-based payment program 2009 (748k) have been reclassed to retained earnings, together with the amount carried forward in additional paid-in capital (2,845k) for the share-based payment program 2009.
The over-funding (amount recognized as asset) of 1,485k (2009/2010: 923k) is presented under other non-current assets.
Funde d S ta tus . The difference between the fair value of plan assets and the present value of defined benefit obligations is referred to as the funded status. Amounts recognized for current and previous periods as per September 30 are as follows:
k 2011 2010 2009 2008 2007
Present value of defined benefit obligation less fair value of plan assets Funded status
212,978 190,756 22,222
217,006 195,481 21,525
190,620 181,841 8,779
182,409 174,841 7,568
183,797 180,429 3,368
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Changes to the present value of defined benefit obligations and the fair value of plan assets may result in actuarial gains or losses, e.g., due to parameter changes. Wincor Nixdorf recognizes actuarial gains and losses directly in equity:
k 2010/2011 2009/2010
Cha nge i n D e f i n e d Be ne f i t O b l i ga ti on.

Sept. 30, 2011
k Sept. 30, 2010
Present value of defined benefit obligation as of October 1 Current service cost Interest cost Member contributions Actuarial gains (-)/losses Pension payments Curtailments Plan alterations Divestitures/Transfers Exchange rate differences Present value of defined benefit obligation as of September 30
217,006 7,068 9,353 896 10,152 422 22 0 13,342 2,549 212,978
190,620 6,696 9,687 848 11,044 5,927 509 70 473 4,144 217,006
Actuarial gains and losses recognized in equity in the year under review Actuarial gains and losses recognized in equity in the previous years Accumulated actuarial gains and losses
1,132 10,876 12,008
11,659 783 10,876
Ac tu arial Assumptions. With regard to the Group en-
tities, the underlying actuarial assumptions (weighted average) for the valuation of defined benefit obligations are as follows:
Pl a n A s s e ts . Plan assets were invested in the following
Sept. 30, 2011 Sept. 30, 2010
assets:
Sept. 30, 2011 Sept. 30, 2010
Interest rate Income trend Pension trend
4.7% 2.9% 2.0%
4.3% 2.8% 2.0% Shares Debt instruments Real estate Short-term financial investments 17.9% 37.5% 7.8% 36.8% 15.1% 37.5% 8.3% 39.1%
In addition, life expectancy assumptions have been taken into account. For Germany, the 2005G Heubeck Tables were used.
D e f i n e d Be nefit O bligations. For certain groups of employees of the Group, retirement benefit schemes are available. Schemes vary depending on the legal, economic, and tax environments of the respective country. The greater part of them qualify as defined benefit plans. Basically, with regard to employment law, the substantial pension commitments in Germany are based upon direct performance-related commitments in terms of defined contribution plans. Each beneficiary receives, depending on individual pay-scale grouping, contractual classification, or income level, different yearly contributions. The contribution is multiplied by an age factor appropriate to the current pension scheme and credited to the individual retirement account of the employee. The retirement accounts may be used up at retirement by either a one-time pay-off or payments of ten years installments at maximum.
Plan assets contain neither any own financial instruments nor real estate currently used by the Group.
Cha nge i n Pl a n A s s e ts .
Sept. 30, 2011 k Sept. 30, 2010
Fair value of plan assets as of October 1 Expected return on plan assets Actuarial gains/losses (-) Member contributions Employer contributions Pension payments Divestitures/Transfers Exchange rate differences Fair value of plan assets as of September 30
195,481 10,799 11,284 896 1,278 3,100 11,631 2,117 190,756
181,841 10,388 615 848 1,319 2,600 640 3,660 195,481
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The expected return on plan assets is determined based on a weighted average of 5.5% (2009/2010: 5.7%) and shown within the functional cost headings. The expected return on plan assets is derived from returns generated in the past and longterm expected returns of assets included in the plan asset. The actual result on plan assets was 485k (2009/2010: 9,773k). For fiscal 2011/2012, employer contributions to plan assets in the amount of 1,336k are expected.
Pe nsion Expenses.
2010/2011 k 2009/2010
The experience adjustments developed as follows:

k 2010/2011 2009/2010 2008/2009 2007/2008 2006/2007
Pension obligations Plan assets Total
2,633 11,284 8,651
2,511 615 1,896
2,586
908
2,410 1,312 1,098
1,315 16,447 1,271 17,355
Current service cost Interest cost Expected return on plan assets Effects from curtailments Returns from plan alteration Pension expenses
7,068 9,353 10,799 22 52 5,592
6,696 9,687 10,388 658 123 5,214
Post-employment benefit plans are classified as either defined contribution or defined benefit plans. Under defined contribution plans, an enterprise pays fixed contributions and does not assume any other obligations. The personnel expenses of the fiscal year include expenses for defined contribution plans in the amount of 28,156k (2009/2010: 27,378k). Included are expenses of subsidiaries in Belgium, the Netherlands, and Sweden for so-called multi-employer plans. According to IAS 19, these plans have to be basically treated as defined benefit plans. Since the required information of the plans is not available, the plans are treated as defined contribution plans.
19 O th e r Ac c rua l s .
k
Currency Oct. 1, 2010 variances/misc.
Draw-downs
Releases
Additions
Accumulation
Sept. 30, 2011
Non-current other accruals Personnel expenses Environmental protection obligations Warranties Total non-current other accruals Current other accruals Current accruals associated with sales and procurement markets Warranties Onerous contracts Delay and contract penalties Miscellaneous Total current accruals associated with sales and procurement markets Accruals for personnel expenses Accruals for other taxes Other miscellaneous accruals Total current other accruals Total other accruals 52,988 9,854 4,291 12,259 79,392 44,513 48 22,221 146,174 192,457 748 60 97 76 981 124 2 48 1,059 1,052 38,811 6,155 699 2,455 48,120 25,253 22 9,202 82,597 87,105 4,801 1,011 1,814 788 8,414 2,466 0 5,013 15,893 18,724 25,948 7,758 2,043 3,332 39,801 25,763 5 8,933 73,782 80,122 0 19 0 0 19 0 0 0 19 1,295 36,072 10,525 3,918 12,424 62,939 42,681 33 16,891 122,544 169,097 36,462 9,821 0 46,283 3 4 0 7 4,485 23 0 4,508 2,831 0 0 2,831 4,440 864 1,036 6,340 1,222 54 0 1,276 34,805 10,712 1,036 46,553
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In accordance with IAS 37, accruals are created on the balance sheet in respect of legal or actual obligations to third parties resulting from past events where the outflow of funds to settle such obligations is probable and can be estimated reliably. The accruals for personnel expenses have been created essentially for deferred compensation, pre-retirement part-time working arrangements, vacation and flexitime not taken, service anniversary awards as well as severance payments. As a means of entering into early retirement, several domestic legal entities offer a company-subsidized pre-retirement part-time working scheme using the block model. The term of the scheme is between two and six years, and entry to the scheme is permitted no earlier than the employees 55th birthday. Essentially, during the working phase, the employee performs full duties on half pay. During the release phase, the employee no longer works, but receives the remaining 50% of his or her remuneration. The employer subsidy takes the form of topping up of remuneration and contributions to social pension insurance. The
insolvency protection has been handled by a guarantee agreement closed with a bank. Warranty accruals are created in respect of product warranty obligations, which are prescribed by statute or contractually agreed, or which have arisen de facto. The decrease in expected future expenses essentially results from the technical maturity associated with products delivered over the course of the fiscal year and less business with high-end systems. Where income from an order does not cover prime cost, accruals are created for onerous contracts to the value of the variance between income and expenses. Where delay and contract penalties are agreed in contracts for the supply of goods and/or services, and where the incurrence of penalties is probable in the light of the current position, a corresponding accrual for delay and contract penalties is created. Other miscellaneous accruals contain obligations associated with pending legal proceedings and accruals for costs associated with year-end closing.
2 0 L i a b i l i ti e s .
k Residual term between 1 and 5 years More than 5 years
Total
Up to 1 year
Financial liabilities Advances received Trade payables Liabilities to related companies Current income tax liabilities Other liabilities
199,064 (154,364) 19,354 (32,313) 288,654 (274,593) 28,140 (884) 24,675 (23,138) 196,131 (194,204) 756,018 (679,496)
196,957 (39,030) 19,354 (32,313) 288,441 (274,191) 28,140 (884) 24,675 (23,138) 186,448 (182,186) 744,015 (551,742)
2,107 (115,334) 0 (0) 213 (402) 0 (0) 0 (0) 9,682 (12,004) 12,002 (127,740)
0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 1 (14) 1 (14)
Last years equivalent figures are shown in brackets.
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Financial Liabilities. Financial liabilities consist of bank liabilities and liabilities from finance leases. The bank liabilities are shown at amortized costs. These are generally reflecting fair values. The revolving facility credit agreement, set up on August 2, 2005, has been concluded for a term of seven years until August 2, 2012. Within this term, Wincor Nixdorf may unrestrictedly dispose of the volume of credit of 350,000k with variable maturities. The interest is based on an additional margin on the relevant EURIBOR rate. Bank liabilities as of the balance sheet date came to a total of 192,985k (2009/2010: 151,462k), of which 177,029k (2009/ 2010: 111,981k) were from the revolving facility. The revolving facility agreement also allows further loans over and above the funding already taken out to be drawn down. Liabilities from finance leases amount to 6,079k (2009/ 2010: 2,902k) as of the balance sheet date. The referring assets are disclosed in property, plant and equipment as other fixed assets and office equipment amounting to 3,092k (2009/ 2010: 1,960k) and trade receivables amounting to 695k (2009/2010: 771k). Residual Terms of Present Value of Minimum Lease Payments.
Sept. 30, 2011
O th e r L i a b i l i ti e s . Bre a k d ow n of O the r L i a b i l i ti e s .
Residual term between 1 and 5 years k
Total
Up to 1 year
More than 5 years
Deferred income Other tax liabilities Social security liabilities Others Other non-financial liabilities Liabilities to employees Interest rate derivatives Forward currency transactions Others Other financial liabilities
84,451 (88,351) 19,860 (22,695) 8,532 (8,521) 0 (162)
78,227 (81,998) 19,860 (22,695) 8,168 (7,981) 0 (162)
6,224 (6,353) 0 (0) 364 (540) 0 (0) 6,588 (6,893) 0 (0) 2,616 (4,623) 0 (0) 478 (488) 3,094 (5,111) 9,682 (12,004)
0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 1 (14) 1 (14) 1 (14)
112,843 106,255 (119,729) (112,836) 61,495 (53,908) 3,683 (4,845) 1,994 (2,480) 16,116 (13,242) 83,288 (74,475) 61,495 (53,908) 1,067 (222) 1,994 (2,480) 15,637 (12,740) 80,193 (69,350)
k Sept. 30, 2010
196,131 186,448 (194,204) (182,186)

Residual term up to 1 year Residual term between 1 and 5 years
3,995 2,084 6,079
1,110 1,792 2,902
Further explanatory notes on the other financial liabilities are to be found in Note 2 1 .
Residual Terms of Future Total Minimum Lease Payments.

Sept. 30, 2011
k Sept. 30, 2010
OTH ER INFOR M ATION.

21 Financial Instruments. Financial instruments are
Residual term up to 1 year Residual term between 1 and 5 years Interest Present value of minimum lease payments
4,203 2,243 367 6,079
1,223 1,887 208 2,902
contractual obligations to receive or deliver cash and cash equivalents. In accordance with IAS 32 and IAS 39, these include both primary and derivative financial instruments. Primary financial instruments include, in particular, cash and cash equivalents, trade receivables and payables, credits, and loans. Derivative financial instruments primarily include forward currency transactions and interest rate hedging instruments.
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The following tables show the carrying amounts and fair values of financial assets and liabilities by category of financial instruments and a reconciliation to the corresponding line item in the Group balance sheet. Finance lease receivables and liabilities, and derivatives that qualify for hedge accounting are also included although they are not party of any IAS 39 measurement
category. Since the line items Other Receivables and Other Liabilities contain both financial instruments and non-financial assets and liabilities (in particular, advance payments for services to be received/made in the future and other tax receivables/payables), the reconciliation is shown in the column headed thereof outside IFRS 7.
C a rr ying Amounts , Amounts Recognized, a n d Fair Values by Measurement Category as o f S e p te m b e r 3 0 , 2 011.

Thereof amounts recognized in balance sheet according to IAS 39 Fair value recognized in profit or loss
Category in accordance with IAS 39
Carrying amount
Thereof outside IFRS 7
Amortized costs
Fair value recognized in equity
Thereof Fair value amounts of financial recognized instruments according under to IAS 17 IFRS 7
Assets Cash and cash equivalents Trade receivables thereof: receivables from finance leases Receivables from related companies Other receivables thereof: derivates with a hedging relationship thereof: derivates without a hedging relationship Investments Liabilities Trade payables Liabilities to related companies Financial liabilities thereof: liabilities from finance leases Other non-interest-bearing liabilities thereof: derivates with a hedging relationship thereof: derivates without a hedging relationship FLAC 288,654 FLAC n/a n/a HfT 28,140 6,079 5,566 111 FLAC / n/a 199,064 0 288,654 0 0 5,566 0 28,140 0 77,611 0 0 0 192,985 0 0 0 0 5,566 5,566 0 0 0 0 0 111 0 111 0 288,654 0 6,079 0 0 0 28,140 6,079 77,722 0 111 6,079 199,064 LaR n/a LaR LaR / n/a / HfT n/a HfT LaR / FVO 22,146 6,564 8,091 51,036 527 81 1,222 0 0 0 43,790 527 0 0 22,146 0 8,091 7,165 0 0 162 0 0 0 0 527 527 0 0 0 0 0 0 81 0 81 1,060 0 6,564 0 0 0 0 0 22,146 6,564 8,091 7,246 0 81 1,222 LaR / n/a 389,652 0 383,088 6,564 389,652
FLAC / n/a / HfT 196,131 118,409
Ag g re ga te d by Category in Accordance with I AS 3 9 :

Loans and receivables Financial assets and liabilities measured as at fair value through profit or loss (Fair Value Option) Financial assets measured as at fair value through profit or loss (Held for Trading) Financial liabilities measured as at fair value through profit or loss (Held for Trading) Financial liabilities measured at amortized costs LaR 420,652 FVO HfT HfT 1,060 81 111 0 420,652 0 0 0 0 0 0 0 0 0 0 0 0 1,060 81 111 0 0 420,652 0 0 0 1,060 81 111
FLAC 587,390
0 587,390
0 587,390
LaR: Loans and Receivables. FVO: Financial Assets or Financial Liabilities designated as at Fair Value through Profit or Loss (Fair Value Option). HfT: Financial Assets or Financial Liabilities held for trading and measured as at Fair Value through Profit or Loss (Held for Trading). FLAC: Financial Liabilities at Amortized Costs.
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Carrying Amounts, Amounts Reco g n i ze d , and Fair Values by Measurement C a te gory a s o f S e p te m b e r 3 0 , 2 010 .
Thereof amounts recognized in balance sheet according to IAS 39 Fair value recognized in profit or loss
Category in accordance with IAS 39
Carrying amount
Thereof outside IFRS 7
Amortized costs
Fair value recognized in equity
Thereof Fair value amounts of financial recognized instruments according under to IAS 17 IFRS 7
Assets Cash and cash equivalents Trade receivables thereof: receivables from finance leases Receivables from related companies Other receivables thereof: derivates with a hedging relationship Investments Liabilities Trade payables Liabilities to related companies Financial liabilities thereof: liabilities from finance leases Other non-interest-bearing liabilities thereof: derivates with a hedging relationship thereof: derivates without a hedging relationship FLAC 274,593 FLAC n/a n/a HfT 884 2,902 7,059 266 FLAC / n/a 154,364 0 274,593 0 0 7,059 0 884 0 67,150 0 0 0 151,462 0 0 0 0 7,059 7,059 0 0 0 0 0 266 0 266 0 274,593 0 2,902 0 0 0 884 2,902 67,416 0 266 2,902 154,364 LaR n/a LaR LaR / n/a / HfT n/a LaR / FVO 19,959 3,073 281 62,384 2,948 1,219 0 0 0 49,136 2,948 0 19,959 0 281 13,248 0 158 0 0 0 0 2,948 2,948 0 0 0 0 0 0 0 1,061 0 3,073 0 0 0 0 19,959 3,073 281 13,248 0 1,219 LaR / n/a 342,672 0 339,599 3,073 342,672
FLAC / n/a / HfT 194,204 126,788
Aggregated by Category in Accord a n c e w i th I AS 3 9 :

Loans and receivables Financial assets and liabilities measured as at fair value through profit or loss (Fair Value Option) Financial liabilities measured as at fair value through profit or loss (Held for Trading) Financial liabilities measured at amortized costs LaR 373,245 FVO HfT 1,061 266 0 373,245 0 0 0 0 0 0 0 0 0 1,061 266 0 0 373,245 0 0 1,061 266
FLAC 494,089
0 494,089
0 494,089
LaR: Loans and Receivables. FVO: Financial Assets or Financial Liabilities designated as at Fair Value through Profit or Loss (Fair Value Option). HfT: Financial Assets or Financial Liabilities held for trading and measured as at Fair Value through Profit or Loss (Held for Trading). FLAC: Financial Liabilities at Amortized Costs.
Financial instruments measured at fair value are allocated to different measurement levels in accordance with IFRS 7. This includes financial instruments that are 1. measured at their fair values in an active market for identical financial instruments (level 1),
2. measured at their fair values in an active market for comparable financial instruments or using measurement models whose main input factors are based on observable market data (level 2), or 3. using input factors not based on observable market data (level 3).
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The following table shows the amounts allocated to each measurement level at September 30, 2011:
A l l o cation Fair Va lue Hierarchy.
Fair value Sept. 30, 2011 Level 1 Level 2 k Level 3
Financial assets at fair value not effecting net income Derivatives being part of a hedge Financial assets at fair value affecting net income Designated as such upon initial recognition Derivatives not being part of a hedge Financial liabilities at fair value not effecting net income Derivatives being part of a hedge Financial liabilities at fair value affecting net income Derivatives not being part of a hedge 111 0 111 0 5,566 0 5,566 0 1,060 81 0 0 0 81 1,060 0 527 0 527 0
The fair values of forward currency transactions have been obtained by the respective quotations of banks at the balance sheet date. The fair values of the swaps at the balance sheet date were also arrived at based upon corresponding quotations obtained from banks using internal mark-to-market models. The amount that is shown under level 3 concerns the 6% interest in WINCOR NIXDORF Immobilien GmbH & Co. KG. The net result of the company will be allocated on a pro-rata basis; therefore the presented fair value will be converted accordingly. The carrying amount changed as follows:
k Fair value October 1, 2010 Fair value September 30, 2011
The net gains and losses from financial instruments by IAS 39 category are shown in the following table:
N e t G a i n/ L os s by C a te gory.
2010/2011 k 2009/2010
Loans and receivables Financial assets measured as at fair value through profit or loss (fair value option) Financial assets and liabilities measured as at fair value through profit or loss (held for trading) Financial liabilities measured at amortized costs
1,173 1 315 3,790 4,649
1,269 0 690 1,911 2,490
Gains
Losses
Designated as such upon initial recognition
1,061
1,060
Due to the short-term maturities of cash and cash equivalents, trade receivables and payables, as well as other current receivables and payables, their fair values approximate their carrying amount. The fair values of non-current financial assets and liabilities are estimated by discounting expected future cash flows using current interest rates for debt of similar terms and remaining maturities. Cash and cash equivalents, receivables from related parties, other receivables, and investments are not past due and not impaired.
Net result under loans and receivables mainly comprises interests on financial receivables, impairment allowances on trade receivables, as well as gains and losses on foreign currency receivables. The category Financial assets measured as at fair value through profit or loss (fair value option) includes the changes of the fair value of the interest in WINCOR NIXDORF Immobilien GmbH & Co. KG. Gains and losses arising from changes in fair value of interest rate derivatives that do not comply with the hedge accounting requirements under IAS 39 are included in the Financial assets and liabilities measured as at fair value through profit or loss (held for trading) category.
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The net result of the category Financial liabilities measured at amortized costs mainly comprises interest expenses on financial liabilities as well as gains and losses on foreign currency liabilities. Total interest income and total interest expense for financial assets or financial liabilities that are not measured at fair value through profit or loss are structured as follows:
Net Interest Result from Financial Instruments.
2010/2011
k 2009/2010
Total interest income Total interest expenses
779 4,824 4,045
447 3,341 2,894
to safeguard receivables from customers in countries with a credit risk, such as Argentina, Jordan, Kenya, Pakistan, and Uganda. The maximum default risk is represented by the book values of the financial assets recognized in the balance sheet. In the case of derivative financial instruments, the Group is exposed to credit risks arising from the non-performance of contractual obligations by the contracting parties. These risks are minimized by only entering into agreements with contracting parties who have a good credit standing. The entire portfolio of derivative financial instruments is spread across several banks to reduce the risk of default. The default risk of derivatives equals their positive fair values. The maximum credit risk of a single contracting partner is 0k (2009/2010: 532k) at the balance sheet date.
L i qui d i ty R i s k s . From an operating point of view, the
Risks Arising from Financial Instruments. Typical
risks arising from financial instruments include credit risk, liquidity risk, and market risks. The risk management system of the Group including its goals, methods, and processes is presented in the Risk Report of the Group Management Report. Based on the information presented below, we have identified no explicit concentrations of risk attributable to financial risks.
Credit Risks. Wincor Nixdorf attempts to reduce the credit
risks by using trading information, credit limits, and debtor management, including a payment reminders system and proactive debt collection. In view of the fact that no single customer accounted for more than 10% of net sales in the fiscal years 2010/2011 and 2009/2010, there is no concentration of risk with regard to credit risks. We operate with letters of credit
management of the Groups liquidity exposures is centralized by a cash pooling process. This process enables the Group to manage the liquidity surplus and liquidity requirements according to the actual needs of the Group and each subsidiary. The Groups short-term and midterm liquidity management takes into account the maturities of financial assets and financial liabilities as well as estimates of cash flows from the operating activities. Liquidity needs are covered with cash and cash equivalents totaling 22,146k (2009/2010: 19,959k). Above and beyond this, Wincor Nixdorf had unused credit lines amounting to 186,559k (2009/2010: 255,702k) at the balance sheet date. Accordingly, liquidity risk can be classified as low in total. The financial liabilities are expected to result in the following (undiscounted) payments in the next years:
k Gross value Sept. 30, 2011 Cash flows 2011/2012 Cash flows 2012/2013 2015/2016 Cash flows from 2016/2017
Trade payables Liabilities to related companies Financial liabilities thereof: liabilities from finance leases Other non-interest-bearing liabilities thereof: derivates with a hedging relationship thereof: derivates without a hedging relationship Total
288,654 28,140 203,679 6,446 90,663 12,910 111 611,136
288,427 28,140 201,754 4,203 82,886 5,449 111 601,207
227 0 1,925 2,243 3,130 2,815 0 5,282
0 0 0 0 4,647 4,646 0 4,647
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k Gross value Sept. 30, 2010 Cash flows 2010/2011 Cash flows 2011/2012 2014/2015 Cash flows from 2015/2016
Trade payables Liabilities to related companies Financial liabilities thereof: liabilities from finance leases Other non-interest-bearing liabilities thereof: derivates with a hedging relationship thereof: derivates without a hedging relationship Total
274,593 884 161,194 3,110 89,181 18,034 266 525,852
274,191 884 46,078 1,223 72,702 3,443 266 393,855
402 0 115,116 1,887 8,043 7,265 0 123,561
0 0 0 0 8,436 7,326 0 8,436
M a rke t Risk s. Market risk is the risk that fair values or
future cash flows of non-derivative or derivative financial instruments will fluctuate due to changes in risk factors. Currency and interest rate risks are the significant market risks the Group is exposed to. Associated with these risks are fluctuations in income, equity, and cash flow. The following analysis and amounts determined by means of a sensitivity analysis represent hypothetical, future-oriented data that can differ from actual outcomes because of unforeseeable developments in financial markets. Moreover, non-financial or non-quantifiable risks, such as business risks, are not considered here.
C u rrency Risks. At Wincor Nixdorf, both sales and pur-
chases are also transacted in foreign currency. WINCOR NIXDORF International GmbH is the Groups currency management center. The entire currency risks are identified, quantified and controlled. Furthermore, it provides foreign currencies if necessary. Currency risks arise from sales and purchases in various foreign currencies. At Wincor Nixdorf, these are mainly U.S. dollar and pounds sterling. The risk is considerably reduced by natural hedging, i.e., management of sales and purchases by choice of location and suppliers. The nominal sum of the forward currency transactions amounts to 94,008k (2009/2010: 122,352k). The risk is hedged for a period of twelve months in advance by monthly due-forward currency transactions with banks. Since the hedge is classified as highly effective, a cash flow hedge is accounted for according to IAS 39 Financial Instruments: Recognition and Measurement. The corresponding market values, which are determined by market prices, amount to 527k and 1,883k,
respectively (2009/2010: 2,929k and 2,435k), at the balance sheet date, and have been recorded without any impact on profit and loss within equity, having taken into account deferred taxes. The market values are presented under other assets or other liabilities, respectively. Market prices have been obtained by the respective quotations of banks. The forward currency transactions will affect profit and loss at maturity date. During this fiscal year, 494k (2009/2010: 7,057k) has been released from equity and recorded in profit and loss under cost of sales. The remaining net currency risk not hedged by forward currency transactions amounts to approximately 24 million U.S. dollars (2009/2010: approximately 47 million U.S. dollars) as well as approximately 5 million pounds sterling (2009/2010: approximately 6 million pounds sterling) and may be, overall, regarded as minor. The flows of foreign currency are recorded centrally for the entire Group and, where feasible, equalized out. No foreign currency options were transacted during the fiscal year and the previous year. If the euro had been revalued and devalued respectively by 10% against the U.S. dollar as of September 30, 2011, the other components of equity (before deferred taxes) and the fair value of forward currency transactions would have been 6,367k higher, and 7,783k lower, respectively (2009/2010: 8,999k higher, and 10,779k lower, respectively). If the euro had been revalued and devalued respectively by 10% against pounds sterling as of September 30, 2011, the other components of equity (before deferred taxes) and the fair value of forward currency transactions would have been 2,302k higher, and 2,813k lower, respectively (2009/2010: 2,273k higher, and 2,778k lower, respectively).
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Inte rest Rate Risks. In order to reduce the risk of interest rate changes, Wincor Nixdorf entered into agreements for two collars with a nominal sum of 100,000k, with different banks. They ran until December 31, 2010. A collar is a combination of interest rate cap and interest rate floor. An interest rate cap is taken to mean an agreement between buyer and seller under which the seller pays the buyer the difference between the agreed upper interest rate limit and the reference rate (if higher) on an agreed nominal sum over a set term. An interest rate floor, on the other hand, is the description given to an agreement between buyer and seller stipulating that the seller will pay the buyer the difference between the agreed lower interest rate limit and the reference rate (if lower) on an agreed nominal sum over a set period. Wincor Nixdorf has secured an upper interest rate limit of 5.00% (as buyer of the interest rate caps) and a lower interest rate limit of 1.75% (as seller of the interest rate floors). The underlying reference rate is the three-month EURIBOR. Due to the collars, Wincor Nixdorf is not only protected against rising interest rates, but is also able to benefit from falling rates down to the lower limit of 1.75%. The changes in value were included under finance income and finance costs. The impact of the changes in value on profit and loss is 222k (2009/2010: 734k). In addition, since September 27, 2006, Wincor Nixdorf has effected an interest rate swap for a nominal sum of 50,000k at a secured interest rate of 3.797% until July 31, 2012. The interest rate swap commits Wincor Nixdorf to pay a fixed interest rate for a specified duration and an agreed volume. In return, Wincor Nixdorf receives payment at the actual short-term interest rate (EURIBOR) from the counterparty of the interest swap. Hereby, Wincor Nixdorf hedges the interest level to the amount of the secured interest rate of 3.797% p.a. The interest rate swap transforms interest payables from short-term borrowings (e.g., in the context of the revolving facility) into inter-
est payables with a fixed interest rate. Therefore, the Company is protected against a rise in short-term interest rates, but does not benefit from a fall of these. As the hedge relationship is determined to be highly effective, it is accounted for as a cash flow hedge in accordance with IAS 39 Financial Instruments: Recognition and Measurement. At the balance sheet date, the fair value, which is measured at market prices, is 1,026k (2009/2010: 2,399k) and has been directly recognized in the other components of equity, having taken into account deferred taxes. The market price is determined on the basis of price quotations provided by banks. The interest adjustment takes place at the end of each quarter. Furthermore, an interest swap for a nominal sum of 50,000k with a term from March 31, 2009 until March 31, 2011, has been concluded in fiscal 2008/2009. For this interest swap, the one-month EURIBOR has been received and the three-month EURIBOR minus 25.6 basis points has been paid. As of May 28, 2010, an interest swap for a nominal sum of 50,000k, with a ten-year term from October 1, 2010 until September 30, 2020, has been concluded. For this interest swap, the three-month EURIBOR is received and a fixed interest of 2.974% is paid. The fair value, which is measured at market prices, is 2,616k (2009/2010: 2,225k) and has been directly recognized in the other components of equity, having taken into account deferred taxes. In the year under review, an interest swap for a nominal sum of 50,000k, with a term from March 29, 2011 until June 30, 2012, has been concluded. For this interest swap, the onemonth EURIBOR is received and the three-month EURIBOR minus 15.4 basis points is paid. The fair value, which is measured at market prices, is 41k and has been directly recognized in the other components of equity, having taken into account deferred taxes.
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An increase/decrease of 100 basis points of the interest rates on balance sheet date would result in the following changes: the other components of equity (before deferred taxes) would have been increased by 4,339k and decreased by 4,774k, respectively (2009/2010: increased by 5,398k and decreased by 5,431k, respectively).
2 2 Cost of Ma te rials.
k 2010/2011 2009/2010
2 3 Pe rs o n n e l E x p e n s e s a nd E m p l oye e s .
k 2010/2011 2009/2010
Wages and salaries Social security contributions and welfare expenses Retirement benefit expenses
506,129 78,952 12,712 597,793
497,875 76,114 11,854 585,843
Cost of raw materials, supplies, and bought-in goods Cost of bought-in services
812,556 518,640 1,331,196
743,987 490,170 1,234,157
The average number of employees during the year was 9,257 (2009/2010: 9,302), excluding apprentices. Headcount breakdown by function was as follows:
2010/2011 2009/2010
Production Sales/Services Research and development Administration
1,680 6,419 837 321 9,257
1,639 6,424 913 326 9,302
The net change in finished and unfinished goods and services amounts to 8,650k (2009/2010: 19,744k) in the year under review.
2 4 Conti nge n t L i a bi l i ti e s . Obligations of 43k (2009/2010: 399k) arising from guarantees are existing at the balance sheet date. 2 5 O the r F i n a n c i a l Com m i tm e nts .
k Residual term between 1 and 5 years More than 5 years
Total
Up to 1 year
Future payment commitments from real estate leases miscellaneous tenancies and leases long-term purchase and service contracts acquisition of intangible assets and property, plant and equipment 82,850 (87,607) 14,973 (12,745) 19,821 (21,619) 3,962 (3,213) 121,606 (125,184)
24,406 (23,410) 6,105 (5,260) 12,505 (11,979) 3,962 (3,213) 46,978 (43,862)
51,143 (54,964) 8,868 (7,485) 7,241 (9,580) 0 (0) 67,252 (72,029)
7,301 (9,233) 0 (0) 75 (60) 0 (0) 7,376 (9,293)
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The future payment commitments from real estate leases and miscellaneous tenancies and leases represent the future minimum lease payments in connection with operating leases, as per IAS 17. The agreements comprise the leasing of buildings and motor vehicles. Leasing expenses amounted to 43,624k (2009/2010: 44,492k) in the year under review.
26 R elated Parties. A list of affiliated companies of Wincor Nixdorf AG is included in Note 29 . Related parties according to IAS 24 Related Party Disclosures are, besides the Board of Directors, essentially the Supervisory Board, investments, and shareholders. The compensation of the Board of Directors is as follows:
k 2010/2011 2009/2010
Short-term benefits (without share-based compensation) Share-based compensation Total compensation Post-employment benefits Total
3,263 1,930 5,193 326 5,519
2,543 1,313 3,856 276 4,132
The disclosure of share-based compensation refers to the fair value at the grant date. Additions to superannuation (current service costs) for current members of the Board of Directors are disclosed as post-employment benefits. With the conversion of the pension scheme from pension payments to a onetime pay-off or payments in several installments, also pension obligations of the Board of Directors were adapted. As of Sep-
tember 30, 2011, the entitlement to funds of the Board of Directors upon reaching the specified age limit (retirement capital) amounts to 2,146k (2009/2010: 1,661k). The members of the Board of Directors own 332,332 share options from the share-based payment programs 2010 and 2011 as of September 30, 2011 (2009/2010: 268,000 share options from share-based payment programs 2009 and 2010). As of September 30, 2011, the Supervisory Board held no share options (2009/2010: 3,700 share options that were not granted during the period in which its members discharged their Supervisory Board duties). In fiscal 2010/2011, the members of the Supervisory Board received fringe benefits amounting to 675k (2009/2010: 672k). No long-term benefits are arranged with the members of the Supervisory Board. For individualized presentation and further details of the Board of Directors and Supervisory Boards compensation, please refer to the presentation of the compensation report, which is part of the Group Management Report. Total compensation paid to former members of the Board of Directors amounted to 115k in fiscal 2010/2011 (2009/ 2010: 114k). An amount of 1,787k (2009/2010: 1,961k) is accrued for pension obligations benefiting former members of the Board of Directors. The Group has business relations with the investment companies WINSERVICE AS and CI Tech (since July 1, 2011). Transactions with these related parties result from the delivery and service relations in the ordinary course of business. The volume of business relations is presented in the following table:
k Receivables Payables Sept. 30, 2010 Sept. 30, 2011 Sept. 30, 2010
Net sales 2010/2011 2009/2010
Supplies and services 2010/2011 2009/2010
Sept. 30, 2011
1,512
10,736
279
8,183
367
28,140
884
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27 Notes to the Group Cash Flow Statement.
The Group cash flow statement has been drawn up in accordance with IAS 7 Cash Flow Statements. Cash and cash equivalents include not only cash amounting to 22,146k (2009/2010: 19,959k) but also bank liabilities repayable at any time amounting to 15,933k (2009/2010: 37,642k), as these could be considered in the management of cash. The change in working capital is a result of the following changes:
k Sept. 30, 2011 Sept. 30, 2010
Change in inventories Change in advances received on orders Change in trade receivables Change in trade payables Change in deferred income Change in working capital
18,286 12,959 47,753 15,673 4,250 31,003
34,784 2,707 27,931 18,931 8,277 32,800
Overall, the EBITDA of 225,276k (2009/2010: 223,191k), as well as with an opposite impact the income taxes paid of 37,107k (2009/2010: 51,559k) and the change in working capital of 31,003k (2009/2010: 32,800k) resulted in cash flow from operating activities of 143,693k (2009/2010: 154,108k). Lease payments from customers for Wincor Nixdorf products and lease payments from Wincor Nixdorf for operating lease assets are presented in cash flow from operating activities. Lease payments for assets, which classify as a finance lease and are capitalized, are recorded in cash flow from financing activities.
2 8 Se gment Report. For the purposes of presenting segment information, the activities of the Group are divided into operating segments in accordance with the rules contained in IFRS 8 (Operating Segments). Internal reporting within the Group is conducted on the basis of the customer profiles Banking and Retail as well as on the regional basis; the areas Banking and Retail were defined as operating segments in accordance to IFRS 8.10. As chief operating deci-
sion maker (CODM) within the meaning of IFRS 8, our Board of Directors assesses the performance of these two operating segments on the basis of corporate reporting and makes decisions about resources to be allocated. The performance of the operating segments is assessed in particular by referring to net sales to external customers as well as EBITA. The nature of products and services in the Banking and Retail segments are shown in the chapter General Information and in the Group Management Report. Segment information is prepared in conformity with the accounting policies adopted for preparing and presenting the Group Financial Statements. There were no changes in accounting policies compared to previous periods. EBITA is the measure of segment profit (loss) used in segment reporting and comprises gross profit, selling, general and administration expenses, research and development expenses, other operating income, and expenses and result from equity accounted investments. In the case of information by geographical region, external sales are based on the location of the customers registered office. In fiscal years 2010/2011 and 2009/2010, no single customer accounted for more than 10% of total net sales. The information disclosed for non-current assets relates to intangible assets without goodwill as well as property, plant and equipment and reworkable service parts. The allocation is given according to the location of the assets concerned.
R e c o n c i l i a ti on o f S e g m e n t P rof i t to Pro f i t fo r the Pe ri od.
2010/2011
k 2009/2010
Operating profit (EBITA) Goodwill amortization Operating profit (EBIT) Finance income and finance costs Profit before income taxes Income taxes Profit for the period Profit attributable to non-controlling interests Profit attributable to equity holders of Wincor Nixdorf AG
162,356 0 162,356 6,917 155,439 47,150 108,289 1,171 107,118
162,230 0 162,230 6,015 156,215 49,738 106,477 288 106,189
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Reconciliation of Segment Assets a nd Segment Liabilities.

Sept. 30, 2011
2 9 Cons ol i da ti on G ro u p a s o f
k Sept. 30, 2010
Se pte m be r 3 0 , 2 011.
Capital share in %
Assets Non-operating miscellaneous intangible assets (goodwill and product know-how) Loans Investments accounted for using the equity method Investments Receivables from related companies Non-operating miscellaneous assets and current income tax assets Cash and cash equivalents Deferred tax assets Segment assets Equity and Liabilities Equity Accruals for pensions and similar commitments Deferred tax liabilities Other accruals Financial liabilities Current income tax liabilities Non-operating miscellaneous liabilities Segment liabilities
1,307,410 335,224 117 5,440 1,105 8,091 57,865 22,146 27,115 850,307 1,307,410 329,897 24,405 27,993 169,097 199,064 24,675 139,820 392,459
1,271,186 333,629 113 28 1,106 281 66,110 19,959 26,017 823,943 1,271,186 358,450 23,198 17,585 192,457 154,364 23,138 106,737 395,257
G e rm a ny
Wincor Nixdorf Aktiengesellschaft, Paderborn WINCOR NIXDORF International GmbH, Paderborn WINCOR NIXDORF Banking Consulting GmbH, Paderborn WINCOR NIXDORF Branch Technology GmbH, Paderborn WINCOR NIXDORF Business Administration Center GmbH, Paderborn WINCOR NIXDORF Customer Care GmbH, Paderborn Wincor Nixdorf Dienstleistungs GmbH, Paderborn WINCOR NIXDORF Facility GmbH, Paderborn WINCOR NIXDORF Facility Services GmbH, Paderborn WINCOR NIXDORF Global IT Operations GmbH, Paderborn WINCOR NIXDORF Grundstcksverwaltung Ilmenau GmbH & Co. KG, Paderborn Wincor Nixdorf Logistics GmbH, Paderborn Wincor Nixdorf Lottery Solutions GmbH, Constance WINCOR NIXDORF Manufacturing GmbH, Paderborn Wincor Nixdorf Portavis GmbH, Hamburg WINCOR NIXDORF Real Estate GmbH & Co. KG, Paderborn WINCOR NIXDORF Retail Consulting GmbH, Paderborn Wincor Nixdorf Retail Services GmbH, Paderborn WINCOR NIXDORF Security GmbH, Paderborn Wincor Nixdorf Services GmbH, Paderborn WINCOR NIXDORF Technology GmbH, Paderborn Prosystems IT GmbH, Bonn Bankberatung Organisations- und IT-Beratung fr Banken AG, Wedemark 100 100 100 100 100 100 100 100 100 100 100 100 100 51 100 100 100 100 100 100 51 90.35
Non-operating miscellaneous liabilities include other liabilities without deferred income.
Audi t or s Repor t
141
Capital share in %
Capital share in %
E u rope
Belgium Wincor Nixdorf NV, Zaventem Denmark Wincor Nixdorf A/S, Ballerup Finland Wincor Nixdorf Oy, Espoo France Wincor Nixdorf SAS, Vlizy-Villacoublay Greece Wincor Nixdorf Information Systems S.A., Kifissia/Athens Great Britain CCi Solutions Limited, Wokingham Datalect Group Ltd., Perivale, Middlesex Wincor Nixdorf Banking Services Ltd., Wokingham Wincor Nixdorf Ltd., Wokingham Ireland Wincor Nixdorf Ltd., Dublin Italy Wincor Nixdorf Retail Consulting S.r.l., Segrate/Milan Wincor Nixdorf S.r.l., Assago/Milan Malta Wincor Nixdorf Finance Malta Holding Limited, St Julians Wincor Nixdorf Finance Malta Limited, St Julians The Netherlands SecurCash B.V., Rotterdam Wincor Nixdorf B.V., Delft Norway Wincor Nixdorf A/S, Oslo Austria Wincor Nixdorf GmbH, Vienna Poland Wincor Nixdorf Sp.z.o.o., Warsaw Portugal Wincor Nixdorf Lda., Carnaxide Russia LLC WINCOR NIXDORF, Moscow1 Wincor Nixdorf Oil and Gas IT LLC, Moscow1 Sweden Wincor Nixdorf A.B., Solna Switzerland BEB Industrie-Elektronik AG, Burgdorf Wincor Nixdorf Finance AG, Baar Wincor Nixdorf AG, Brttisellen Slovakia Wincor Nixdorf s.r.o., Bratislava Spain Wincor Nixdorf S.L., Alcobendas/Madrid Dynasty Technology Group, S.A., Madrid1 Czech Republic Wincor Nixdorf s.r.o., Prague Turkey Wincor Nixdorf Bilgisayar Sistemleri A.S., Istanbul Ukraine LIMITED LIABILITY COMPANY WINCOR NIXDORF, Kiev1 Hungary Wincor Nixdorf Kft., Budapest 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
A m e ri c a s
Brazil Wincor Nixdorf Solues em Tecnologia da Informao Ltda., So Paulo Dynasty Technology Brasil Software Ltda., So Paulo1 Canada Wincor Nixdorf Canada Inc., Mississauga/Ontario Mexico Wincor Nixdorf IT Support S.A. de C.V., Mexico City1 Wincor Nixdorf S.A. de C.V., Mexico City1 USA Wincor Nixdorf Inc., Austin Venezuela Wincor Nixdorf C.A., Caracas 100 100 100 99.998 100 100 100
A s i a - Pa c i f i c
Australia WINCOR NIXDORF AUSTRALIA PTY LTD, Sydney China Wincor Nixdorf (Hong Kong) Ltd., Hong Kong Wincor Nixdorf Retail & Banking Systems (Shanghai) Co., Ltd., Shanghai1 Wincor Nixdorf Retail & Banking Systems Manufacturing (Shanghai) Co., Ltd., Shanghai1 India Wincor Nixdorf India Private Ltd., Mumbai Indonesia Pt. Wincor Nixdorf Indonesia, Jakarta Selatan Malaysia WINCOR NIXDORF RETAIL SOLUTIONS (M) SDN. BHD, Kuala Lumpur Wincor Nixdorf (M) Sdn. Bhd., Kuala Lumpur Philippines WINCOR NIXDORF (PHILIPPINES) INC., Makati City Singapore Wincor Nixdorf Pte. Ltd., Singapore WINCOR NIXDORF MANUFACTURING PTE. LTD, Singapore South Korea Wincor Nixdorf Ltd., Seoul Taiwan Wincor Nixdorf Taiwan Ltd., Taipei Thailand Wincor Nixdorf (Thailand) Co., Ltd., Bangkok 100 100 100 100 100 100
100 100 100 100 100 100 100 100
A f ri c a
Algeria Wincor Nixdorf EURL, Algiers1 Morocco Wincor Nixdorf S.A., Casablanca South Africa Wincor Nixdorf (Pty) Ltd, Hurlingham-Sandton 100 96.5 100
I nve s tm e nts a c c ounte d fo r u s i ng the e q u i ty m e th o d .

CI Tech Components AG, Burgdorf, Switzerland1 WINSERVICE AS, Oslo, Norway1
1) Fiscal
50 50
year ending December 31.
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The following German subsidiaries of Wincor Nixdorf AG made part or total use of the exemption clause included in Section 264 (3) and Section 264b of the German Commercial Code in fiscal 2010/2011: WINCOR NIXDORF International GmbH, Paderborn WINCOR NIXDORF Banking Consulting GmbH, Paderborn WINCOR NIXDORF Branch Technology GmbH, Paderborn WINCOR NIXDORF Business Administration Center GmbH, Paderborn WINCOR NIXDORF Customer Care GmbH, Paderborn Wincor Nixdorf Dienstleistungs GmbH, Paderborn WINCOR NIXDORF Facility GmbH, Paderborn WINCOR NIXDORF Facility Services GmbH, Paderborn Wincor Nixdorf Logistics GmbH, Paderborn
WINCOR NIXDORF Manufacturing GmbH, Paderborn WINCOR NIXDORF Retail Consulting GmbH, Paderborn Wincor Nixdorf Retail Services GmbH, Paderborn WINCOR NIXDORF Security GmbH, Paderborn Wincor Nixdorf Services GmbH, Paderborn WINCOR NIXDORF Technology GmbH, Paderborn WINCOR NIXDORF Real Estate GmbH & Co. KG, Paderborn WINCOR NIXDORF Grundstcksverwaltung Ilmenau GmbH & Co. KG, Paderborn
3 0 Audi to r s Fe e s . The following fees for our Group auditor, KPMG AG Wirtschaftsprfungsgesellschaft, as well as for member firms of the KPMG worldwide network were recognized as expenses for services rendered during fiscal 2010/2011 and 2009/2010:
k 2010/2011 2009/2010
For audit fees thereof for KPMG AG For other certification or valuation services thereof for KPMG AG For tax consultancy thereof for KPMG AG For other services rendered to Wincor Nixdorf AG or its subsidiaries thereof for KPMG AG
1,520 599 115 38 193 97 59 4 1,887
1,570 616 226 125 358 240 119 0 2,273
31 Statement of Compliance with the German Code of Corporate Governance. The Board of Direc-
tors and Supervisory Board of Wincor Nixdorf AG have issued the statement of compliance with the German Code of Corporate Governance according to Section 161 of the German Stock Corporation Act, and have made it publicly available to the shareholders on the Wincor Nixdorf website.
Information reported pursuant to Section 15a of the German Securities Trading Act (Directors Dealings) can be obtained from our website (www.wincor-nixdorf.com).
3 2 Eve n ts a fte r th e Ba l a n c e She e t Da te . No
events of particular significance have occurred after the balance sheet date.
Paderborn, November 17, 2011 Wincor Nixdorf Aktiengesellschaft, Paderborn
Heidloff President and Chief Executive Officer
Auerbach Executive Vice President
Dr. Wunram Executive Vice President
Gr oup Account s Notes to the Group Financial Statements Auditors Report
143
AUDI TO R S R E P O RT We have audited the consolidated financial statements prepared by the Wincor Nixdorf Aktiengesellschaft, comprising the group income statement, the group statement of comprehensive income, the group balance sheet, the group cash flow statement, changes in group equity and the notes to the group financial statements, together with the group management report for the business year from October 01st, 2010 to September 30th, 2011. The preparation of the consolidated financial statements and the group management report in accordance with IFRSs, as adopted by the EU, and the additional requirements of German commercial law pursuant to 315 a Abs. 1 HGB (Handelsgesetzbuch German Commercial Code) are the responsibility of the parent companys management. Our responsibility is to express an opinion on the consolidated financial statements and on the group management report based on our audit. We conducted our audit of the consolidated financial statements in accordance with 317 HGB (Handelsgesetzbuch German Commercial Code) and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprfer (Institute of Public Auditors in Germany) (IDW). Those standards require that we plan and perform the audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the consolidated financial statements in accordance with the applicable financial reporting framework and in the group management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the account-
ing-related internal control system and the evidence supporting the disclosures in the consolidated financial statements and the group management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial statements of those entities included in consolidation, the determination of entities to be included in consolidation, the accounting and consolidation principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements and group management report. We believe that our audit provides a reasonable basis for our opinion. Our audit has not led to any reservations. In our opinion, based on the findings of our audit, the consolidated financial statements comply with IFRSs, as adopted by the EU, the additional requirements of German commercial law pursuant to 315 a Abs. 1 HGB and give a true and fair view of the net assets, financial position and results of operations of the Group in accordance with these requirements. The group management report is consistent with the consolidated financial statements and as a whole provides a suitable view of the Groups position and suitably presents the opportunities and risks of future development. Bielefeld, November 23th, 2011 KPMG AG Wirtschaftsprfungsgesellschaft Dr. Bartels-Hetzler German Public Auditor Rehnen German Public Auditor
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Glossary.
C O M PA NY T E RM INOLOGY.
(Application) Suite: A group of applications sold as a
C h e ckout Sy s te m s : Systems, made up of hardware and software, used for the process of scanning and payment of goods in retail outlets. C o n s u l ti ng: In most cases, consulting services are unre-
complete package. Wincor Nixdorf has developed the Retail Banking Suite (ProClassic/Enterprise Retail Banking Solution Suite) for the banking industry and the TP Application Suite for its retail customers.
Banking (Segment): The segment within Wincor Nixdorf dealing with the development, manufacture, and sale of hardware, software, and services for customers in the banking industry. Cash Cycle Management: (see also Cash Management). Cash Management: The term Cash Management is used
lated to a specific product and are offered when the client either lacks the required in-house expertise or the time. It is a general term that can be used to describe a range of professional activities. It is often used in the context of business or IT consulting.
Distribution Channels: Distribution (or sales) channels are the various channels used for communication with customers. Offering hardware, software, and services through a number of different distribution channels is often referred to as multichannel distribution (see also Multichannel). Dynamic Fraud Management: The term used by Wincor
to describe all the measures in place to assure the short-term availability of cash in the Company. It covers the full range of tasks and measures implemented to provide sufficient liquidity and achieve the greatest possible level of transaction efficiency. Cash Management goes beyond the simple administration of cash resources; it involves the active, targeted control of cash with a view to assuring and maintaining the Companys ability to meet its payment obligations.
Ca sh Recycling System: Cash machine that counterfeit-checks deposited banknotes and subsequently makes this cash available for withdrawals. Ca sh Systems: Cash systems include devices for dispens-
Nixdorf to describe an approach whereby security-critical data from various sources can be brought together in real time and analyzed, before subsequent measures are initiated.
El e c tro n i c C h e ckout Sy s te m ( E P O S) : Electronic checkout (or electronic point-of-sale) systems are taken to include all types of checkout systems that function electronically rather than mechanically. Electronic Point-of-Sale (EPOS) Device: (see also
Electronic Checkout System).

Managed Services: Standardized services associated with the operation of IT systems and information and communication infrastructures within the retail and banking environment. M u l ti ch a n n e l : Under the multichannel principle, transac-
ing or depositing cash as well as combined cash recycling systems for self-service and teller/cashier operation.
CCDM, Cash/Check Deposit Module: Module that automates the process of accepting and identifying banknotes and checks.
tions that are executed using various distribution or sales channels, such as counter, Internet, or ATM transactions, can be settled and managed through a uniform system that makes it possible to use identical applications and data sets.
N o n - c a s h P roduc ts : These are systems deployed for the purpose of presenting information and processing transactions, such as statement printers and kiosk or money transfer terminals.
Gr oup Account s
Audi t or s Repor t Further Information
145
O E M: Abbreviation for Original Equipment Manufacturer; the OEMs products are purchased by a company and retailed under that purchasing company's brand name. O u t s ourcing: This term refers to the delegation of opera-
S e rv i c e a b i l i ty : Compilation, processing, and analysis of detailed information about system components and overall system status as a basis of efficient management of services workflow. S e rv i c e D e s k : User hotline for error notifications, enquiries, and password resets. S e rv i c e - ori e n te d A rch i te c ture ( SOA ) : Flexible, scalable IT architecture that is designed to support data processing by means of modularizing and interconnecting processes and systems. Heterogeneous system environments are efficiently adjusted to changing business processes with the help of a software platform. S e rv i c e ( s ) : This term is used to refer to all those parts of
tional functions and duties to outside suppliers.

Po i nt-of-sale (POS) Systems: Checkout systems. P ro d uct Re late d Services: Product Related Services
are those directly connected with the product after installation and during its life cycle (e.g., maintenance services).
P ro fe ssional Se rvices: These involve providing specialized services to businesses. Wincor Nixdorf offers consulting and integration services. The term also covers all services relating to the implementation of a solution. Retail (Segment): The development, production, logistics, marketing, and sale of hardware together with software and other services for Wincor Nixdorfs retail customers. Rollout: Rollout describes the process of implementing new technologies, products or applications; in other words, the launch for final use and consumption. Alternatively, it can also mean large-scale installation projects such as EPOS systems or ATMs in branch offices or stores under a stipulated project timetable. Self-checkout: This checkout procedure is executed at the checkout counter without a cashier. The customer scans the products and pays for them at the machine using cash or a debit or credit card. S e l f -service Systems: Equipment or devices that per-
our portfolio, such as consulting, that do not consist of hardware or software.

S k i m m i n g : This refers to a method of surreptitiously procuring data from a bank or credit card at an ATM by illegal means and subsequently copying this data to forged cards. Solution(s): A solution is a combination of at least two of
the following: hardware, software, and services/consulting.

Ta l k i ng D e v i c e s : Products capable of issuing status
messages autonomously, providing identity-related data as requested, and if the need arises reporting errors or malfunctions automatically. Serviceability requirements are taken into account as soon as initial ideas concerning the features of new products are formulated.
TCO ( To ta l C o s t of O w n e rs hi p ) : The total costs of
mit consumers or bank customers to execute transactions without the assistance of service or sales personnel or banking staff. Self-service products are, for example, ATMs, self-checkout systems, or kiosk terminals.
hardware, software, or a service, including all direct and indirect costs (including consequential costs).
Transaction Management: Processing and forwarding,
including authentication, of data relating to financial transactions executed within the banking industry.
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FI N ANCIA L T E R MINOLOGY.
Amortization/Depreciation: The systematic alloca-
I nte rna ti ona l F i n a n c i a l Re porti ng S t a n d a rd s :
tion of the depreciable amount of an asset over its useful life. In the case of an intangible asset or goodwill, the term amortization is generally used instead of depreciation. Both terms have the same meaning.
Ca sh Flow: Cash flow describes the change in cash and
The aim of these standards is to make it easier to compare company data. In accordance with an EU directive, all quoted companies are obliged to present their financial statements and reports in line with these rules.
Net Debt: Miscellaneous securities plus cash in hand and at
bank (including checks), minus bank liabilities. cash equivalents during the period under review.
Corporate Governance: Responsible management and Profit for the Period: Profit of the Group before it is di-
vided into Profit attributable to minority interest and Profit attributable to equity holders of Wincor Nixdorf AG.
Revolving Facility: Line of credit that can be utilized repeatedly up to the end of the agreed term despite the borrower already having made repayments. The revolving credit can be utilized in part or in full, and in our specific case the amounts borrowed can be denominated in various currencies (multicurrency revolving facility). R&D Expenditure: Expenditure on research and develop-
control of a company based on the principle of creating value over the long term.
De claration of Conformity: The declaration made by
the Board of Directors and the Supervisory Board pursuant to Section 161 of the German Stock Corporation Act (Aktiengesetz AktG) relating to implementation of the recommendations of the Government Commission on German Corporate Governance.
Deferred Taxes: Temporary differences between taxes cal-
ment activities. culated on the basis of accounting profit, on the one hand, and taxable profit, on the other, the aim being to present tax expense on the basis of accounting profit.
Div idend Yield: Shows how much a company pays out in Vo l a ti l i ty : Intensity of price fluctuations of a stock, cur-
rency or bulk commodity compared to the market development.

Wo rk i ng Ca pi ta l : Working capital is defined as inventories plus trade receivables, less trade payables, less prepayments received and deferred income.
dividends each year relative to its share price: dividend amount divided by the current share price, multiplied by 100.
EBITA (Operating Profit): Earnings before interest,
taxes, and amortization of goodwill. Wincor Nixdorf uses EBITA as an indicator of the underlying profitability of its core Retail and Banking businesses.
EBITDA: Earnings before interest, taxes, depreciation, and
amortization of goodwill, and licenses.

Fre e F loat: The free float of a public company is an esti-
mate of the proportion of shares that are not held by large owners and that are not stock with sales restrictions. It is a measure of how many shares are reasonably liquid and therefore excludes those shares held by strategic shareholders.
Gr oup Account s
Audi t or s Repor t Further Information
147
Financial Calendar 2011/2012.*

Ja n u a ry 23, 2012:
Three-month interim report, 2011/2012

Ja n u a ry 23, 2012:
Annual General Meeting

A p ri l 26, 2012:
For further dates and information, please feel free to visit the website of Wincor Nixdorf AG at www.wincor-nixdorf.com Investor Relations/Financial Calendar section. This Annual Report is available on the Internet in HTML and PDF formats, and can be accessed by visiting www.wincornixdorf.com, Investor Relations/Reports & Financial Data.
* All dates are of a preliminary nature and may be subject to change.
Half-year interim report, 2011/2012

J u l y 26, 2012:
Nine-month interim report, 2011/2012
148
E DI TOR IA L D E TA IL S.
Published by. D e s i gn.
Wincor Nixdorf AG Corporate Communications Heinz-Nixdorf-Ring 1 33106 Paderborn Germany Phone +49 (0) 52 51 693-30 Fax +49 (0) 52 51 693-67 67 info@wincor-nixdorf.com www.wincor-nixdorf.com
Corporate Communications.
W.A.F. Werbegesellschaft mbH, Berlin

Photogra phs / Copy ri ghts .
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Pri n te d by.
Phone +49 (0) 52 51 693-52 00 Fax +49 (0) 52 51 693-52 22 andreas.bruck@wincor-nixdorf.com

Inve stor Relations.
Bonifatius GmbH, Druck-Buch-Verlag, Paderborn
Phone +49 (0) 52 51 693-50 50 Fax +49 (0) 52 51 693-50 56 investor-relations@wincor-nixdorf.com

CO2 emissions from this product have been offset with emission reduction certificates.
Wincor Nixdorf AG
climate neutral print product
Certificate Number: 490-53323-1111-1616 www.climatepartner.com
International Subsidiaries
This document contains forward-looking statements that are based on current estimates and assumptions made by the Board of Directors of Wincor Nixdorf AG to the best of its knowledge. Such forwardlooking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results, including the financial condition and profitability of Wincor Nixdorf, to differ materially from, or be more negative than, those expressed or implied by such forward-looking statements. This also applies to the forward-looking estimates and forecasts derived from thirdparty studies. Consequently, neither the Company nor its management can give any assurance regarding the future accuracy of the opinions set forth in this document or the actual occurrence of the predicted developments.
International Subsidiaries.
Algeria Wincor Nixdorf EURL Ben Aknoun, 25, Rue Mustapha Khoudja 16306 Algeria Phone +213 21 94 55 63 Fax +213 21 94 55 59 Australia Wincor Nixdorf Australia Pty Ltd. Building C, Ground Level, Suite 5 14 Rodborough Road Frenchs Forest, NSW 2086 Phone +61 2 9453 5894 Fax +61 2 9453 5936 Austria Wincor Nixdorf GmbH Modecenterstrasse 1719 1110 Vienna Phone +43 1 74 33 03 00 Fax +43 1 74 33 03 02 20 Belgium Wincor Nixdorf S. A./N.V. Ikaros Business Park Ikaroslaan 45 1930 Zaventem Phone +32 27 12 94 60 Fax +32 27 12 94 99 Brazil Dynasty Technology Brasil Software Ltda. Al. Rio Negro, 1030 Conj. 1303 Edificio Stadium Corporate Alphaville Barueri 06454-000 SP Phone +55 11 41 91 72 28 Fax +55 11 41 91 72 28 Wincor Nixdorf Solues em Tecnologia da Informao Ltda. Brazilian Business Park Av. Tegula, 888 Bairro Ponte Alta 12952-820, Atibaia - SP Phone +55 11 44 17 71 56 Fax +55 11 44 17 71 55 Canada Wincor Nixdorf Canada Inc. 5466 Timberlea Blvd, Unit A Mississauga, Ontario L4W 2T7 Phone +1 905 890 0777 Fax +1 905 206 0777 China Wincor Nixdorf Retail & Banking Systems (Shanghai) Ltd. Block 70 No 36 Yi Wei Road Wai Gao Qiao, Free Trade Zone Shanghai 200 131 PR China Phone +86 21 6168 7999 Fax +86 21 5046 1625 Wincor Nixdorf (Hong Kong) Ltd. 11/F, Southwest, Somerset House, Taikoo Place, 979 Kings Road, Quarry Bay, Hong Kong Phone +852 28 04 10 89 Fax +852 29 05 10 99 Czech Republic Wincor Nixdorf s.r.o. Lun 591 160 00 Prague 6 Phone +420 2 33 03 41 00 Fax +420 2 33 03 41 19 Denmark Wincor Nixdorf A/S Tempovej 14 2750 Ballerup Phone +45 44 77 89 10 Fax +45 44 77 89 22 Finland Wincor Nixdorf Oy Vitikka 2 02630 Espoo Phone +358 (0) 207 520 520 Fax +358 (0) 207 520 502 France Wincor Nixdorf SAS 6, avenue Morane Saulnier 78140 Vlizy Villacoublay Phone +33 (0) 1 30 67 07 07 Fax +33 (0) 1 30 67 07 08 Greece Wincor Nixdorf Information Systems S. A. 14th km, Athens Lamia Nat. Road Zip Code 14564 P.O. Box 51399 Kifissia Phone +30 21 06 24 08 00 Fax +30 21 06 24 09 00 Hungary Wincor Nixdorf Kft. Kunigunda tja 58 1037 Budapest Phone +36 1 430 2550 Fax +36 1 430 2560 India Wincor Nixdorf India Private Ltd. RNA Corporate Park, 2nd Floor, Near Chetna College, Kalanagar, Bandra East Mumbai 400051 Phone +91 22 6140 6666 Fax +91 22 6140 6698 Indonesia PT. Wincor Nixdorf Indonesia Sentra Mulia Building, 6th Floor #606 JL. H.R. Rasuna Said Kav. X-6 No.8 Jakarta Selatan 12940 Phone +62 21 25527900 Fax +62 21 25527999 Ireland Wincor Nixdorf Ltd. 20152016 Orchard Avenue Citywest Business Campus Dublin, 24 Phone +353 14 66 09 60 Fax +353 14 69 81 06
Italy Wincor Nixdorf s.r.l. Centro Direzionale Milanofiori Viale Milanofiori, Strada 2, Ingresso C3 20090 Assago MI Phone +39 02 52863 1 Fax +39 02 52863 835 Malaysia Wincor Nixdorf (Malaysia) Sdn Bhd Suites K-10-01 to 04 Level 10 Solaris Mont Kiara No 2 Jalan Solaris 50480 Kuala Lumpur Phone +60 3 6209 6000 Fax +60 3 6203 7535 Mexico Wincor Nixdorf SA de CV Campos Eliseos #400 Piso 14 Colonia Polanco Delegacin Miguel Hidalgo C.P. 11560 Mxico DF Phone +52 55 5387 9600 Ext. 1000 Fax +52 55 5387 9670 Morocco Wincor Nixdorf S. A. 226, Boulevard Zerktouni 20000 Casablanca Phone +212 22 49 09 09 Fax +212 22 47 10 72 Netherlands Wincor Nixdorf B.V. Brassersplein 1 2612 CT Delft Phone +31 88 120 76 76 Fax +31 88 120 76 99 SecurCash B.V. Kiotoweg 221 3047 BG Rotterdam Phone +31 10 238 33 55 Fax +31 10 238 33 59 Norway Wincor Nixdorf A/S Strmsveien 102 0663 Oslo Phone +47 23 05 26 00 Fax +47 23 05 26 01
Philippines Wincor Nixdorf (Philippines) Inc. 24th Floor of Trident Tower, 312 Sen. Gil Puyat Avenue 1200 Makati City Phone +63 2 902 2600 Fax +63 2 902 2640 Poland Wincor Nixdorf Sp. z o.o. ul. Popularna 82 02-226 Warsaw Phone +48 2 25 72 42 00 Fax +48 2 25 72 42 09 Portugal Wincor Nixdorf Portugal Rua Nossa Senhora da Conceio, 5 2794-086 Carnaxide Phone +351 214 201 800 Fax +351 214 201 891 Russian Federation Wincor Nixdorf LLC RF, Krasnoproletarskaya str., 16, bld. 2, entrance 5 127473 Moscow T/F +7 (495) 739 2300 Singapore Wincor Nixdorf Pte Ltd. 2 Kallang Sector Singapore 349277 Phone +65 67 47 38 28 Fax +65 67 47 15 77 Slovakia Wincor Nixdorf s.r.o. Vajnorsk 98/D 83104 Bratislava Phone +421 2 49 25 81 11 Fax +421 2 49 25 82 11 South Africa Wincor Nixdorf (Pty) Ltd. Block D Hurlingham Office Park 59 Woodlands Avenue Hurlingham Sandton Phone +27 11 289 0507 Fax +27 86 678 5183
South Korea Wincor Nixdorf Ltd. 13F DaeYong Bldg., 441 Yeouido-Dong, Yeongdeungpo-Gu, Seoul, Korea (150714) Phone +82 2 787 15 00 Fax +82 2 787 15 99 Spain Wincor Nixdorf S. L. Valportillo Primera, 11 Polgono Industrial Alcobendas 28108 Alcobendas Madrid Phone +34 91 484 3800 Fax +34 91 484 3883 Dynasty Technology Group S.A.U. C/ Maria Pedraza, 30. 3rd floor 28039 Madrid Phone +34 913 846 480 Fax +34 913 024 240 Sweden Wincor Nixdorf AB Hemvrnsgatan 8 Box 53 SE-17174 Solna Phone +46 (0) 8 470 0900 Fax +46 (0) 8 470 0999 Switzerland Wincor Nixdorf AG Stationsstrasse 5 8306 Brttisellen Phone +41 44 835 34 00 Fax +41 44 835 35 00 BEB Industrie-Elektronik AG Oberburgstrasse 10 3400 Burgdorf Phone +41 34 420 88 33 Fax +41 34 420 88 39 Taiwan Wincor Nixdorf Ltd. 3F, No. 1, Alley 30 Lane 358 Rueiguang Road Neihu District Taipei, Taiwan 114 R.O.C. Phone +886 2 7720 3780 Fax +886 2 7720 2500
Thailand Wincor Nixdorf (Thailand) Co. Ltd. G, 22/F, Thai CC Tower, 889 South Sathorn Road, Yannawa Sathorn, Bangkok Thailand 10120 Phone +66 2672 3999 Fax +66 2672 3909 Turkey Wincor Nixdorf Bilgisayar Sistemleri A. S. Kosuyolu Mahallesi Cenap Sahabettin Sok. No. 43 34718 Kadiky-Istanbul Phone +90 21 65 44 10 00 Fax +90 21 65 45 18 30 Ukraine LLC Wincor Nixdorf KIV (Kiev) 27T Degtyarivska str. 04112 Kiev Phone +380 44 492 9707 Fax +380 44 492 9709 United Kingdom Wincor Nixdorf UK Limited Alba House Mulberry Business Park Fishponds Road Wokingham, Berkshire RG41 2GY Phone +44 (0) 118 936 5000 Fax +44 (0) 118 936 5071 USA Wincor Nixdorf Inc. 8505 Cross Park Drive, Ste 300 Austin, TX 78754 Phone +1 512 252 5622 Fax +1 512 252 5699 Venezuela Wincor Nixdorf C. A. Av. Paseo Coln Edificio Polar Torre Oeste, Piso 13 Plaza Venezuela, Los Caobos Caracas 1050-A P.O. Box 60167 Phone +58 212 21 99 000 Fax +58 212 21 98 902
Wincor Nixdorf AG Corporate Communications Heinz-Nixdorf-Ring 1 33106 Paderborn Germany Phone +49 (0) 5251693-30 Fax +49 (0) 5251693-6767 info@wincor-nixdorf.com www.wincor-nixdorf.com Order No. R40680-J-Z741-1-7600 Printed in Germany

WN FY201011 Annual Report

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WN FY201011 Annual Report

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ANNUAL REPORT 2010/2011 WORLDS CONVERGING.

OCTOBER 1, 2010 TO SEPTEMBER 30, 2011

EXPERIENCE MEETS VISION.

Key Figures 2010/2011.

Financial Statement ( million)

Cash flow ( million)

Key Balance Sheet Figures ( mil l i o n )

10 -ye ar Net Sales History.

2,145 1,948 1,744 1,345 1,440 1,576

2,319 2,250 2,328 2,239

186 137 88 104 116 161

179 162 162

Markets and Market Positions.

Solutions Portfolio and Core Competencies.

Focusing on key customer processes

How we create value for our customers

Our People the Key to our Success.

Proven Growth Strategy.

Growth Strategy, see page 56 et seq.

2010/2011: Key Challenges Met.

Segment Performance, see page 67 et seq.

Net Sales by Business Stream.

Net Sales by Region.

15% 10% 27% 48%

34% 50% 66%

2011/2012: Primed for Volatile Market Environment.

Le tter to S har eholder s

Cor por a t e G over na nc e

S uper v i s or y Boa r d Repor t

Magazine REENGINEERING PROCESSES, see page 27 et seq.

Not es t o t he Gr oup Fi na nc i a l S t a t em ent s

Fur t her Infor m a t i on

MAGAZINE: REENGINERING PROCESSES.

Glossary. Financial Calender, Editorial. International Subsidiaries

144 147 149

Cor por a t e G over na nc e

S uper v i s or y Boa r d Repor t

Not es t o t he Gr oup Fi na nc i a l S t a t em ent s

Fur t her Infor m a t i on

Le tter to S har eholder s Management

Cor por a t e G over na nc e

S uper v i s or y Boa r d Repor t

Senior Vice President,

Not es t o t he Gr oup Fi na nc i a l S t a t em ent s

Fur t her Infor m a t i on

Dr. Jrgen Wunram

Khoon Hong Lim

Le tter to S har eholder s

Cor por a t e G over na nc e

S uper v i s or y Boa r d Repor t

Wincor Nixdorf Share Performance Subdued

Proposed Dividend of 1.70 per Share

Share Performance Well Below Market as a Whole.

Performance of Wincor Nixdorf Sha re s Com pa re d to M DA X a nd M S C I Worl d .

110% 50 100% 94.9% 93.2% 40 80%

Not es t o t he Gr oup Fi na nc i a l S t a t em ent s

Fur t her Infor m a t i on

W i n cor Nixdorf Shares Key Facts & Figures .

Le tter to S har eholder s

Cor por a t e G over na nc e

S uper v i s or y Boa r d Repor t

Details concerning Directors Dealings at www.wincornixdorf.com, Section: Investor Relations

Next AGM: January 23, 2012

Not es t o t he Gr oup Fi na nc i a l S t a t em ent s