Diebold acquisition of Wincor Nixdorf AG finalized

NORTH CANTON, 2016-Aug-16 — /EPR Retail News/ — Diebold, Incorporated (NYSE: DBD) today (15 August 2016) announced that it has successfully completed the acquisition of Wincor Nixdorf AG through its voluntary takeover offer for all the company’s ordinary shares.  The combined organization will begin operating as Diebold Nixdorf on Tuesday, Aug. 16.

Offer consideration and other transaction details

Under the terms of the takeover offer, Wincor Nixdorf shareholders received €38.98 in cash plus 0.434 Diebold common shares in exchange for each Wincor Nixdorf share. The total offer consideration consists of approximately €891.7 million in cash and 9,928,514 newly issued Diebold common shares. To the extent that Wincor Nixdorf shareholders are entitled to fractional shares, those fractional entitlements will be aggregated and sold in the market and the proceeds of such sale distributed pro rata no later than Aug. 29, 2016.

The Diebold common shares issued to Wincor Nixdorf shareholders commenced trading on the NYSEunder the symbol DBD, and all Diebold common shares commenced trading on the Frankfurt Stock Exchange under ISIN US2536511031 (symbol DBD).

In the United Kingdom, the Diebold and Wincor Nixdorf brands and operations will remain distinct pending completion of the Competition and Markets Authority’s review of the transaction.

Financing, synergy targets and capital allocation plans

The cash portion of the offer consideration is being financed with funds available under Diebold, Incorporated’s existing credit agreement and net proceeds from the issuance and sale of its senior notes due 2024.  Diebold Nixdorf expects to report pro forma net debt/EBITDAi of less than 4x as of September 30, 2016. The combined organization plans to deliver approximately $160 million of annual cost synergies and is targeting a non-GAAP operating margin in excess of 9 percent by the end of the third full year following the closing of the takeover offer. The realization of these synergies and Diebold Nixdorf’s focus on deleveraging its balance sheet is expected to result in net debt/EBITDA below 3x by the end of the third full year. The combined company currently intends to pay a dividend per share at a rate of approximately one-third of Diebold’s current annual cash dividend per share, subject to market and other conditions, expected to be paid on a quarterly basis. Paying regular dividends remains a part of Diebold Nixdorf’s philosophy of returning value to shareholders.

About Diebold
Diebold, Incorporated (NYSE: DBD) provides the technology, software and services that connect people around the world with their money – bridging the physical and digital worlds of cash conveniently, securely and efficiently. Since its founding in 1859, Diebold has evolved to become a leading provider of exceptional self-service innovation, security and services to financial, commercial, retail and other markets.

Diebold has approximately 15,000 employees worldwide and is headquartered near Canton, Ohio, USA. Visit Diebold at www.diebold.com or on Twitter: http://twitter.com/DieboldInc.

Cautionary Statement About Forward-Looking Statements
Certain statements contained in this communication regarding matters that are not historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These include statements regarding management’s intentions, plans, beliefs, expectations or forecasts for the future including, without limitation, the business combination with Wincor Nixdorf. Such forward-looking statements are based on the current expectations of Diebold and involve risks and uncertainties; consequently, actual results may differ materially from those expressed or implied in the statements. Such forward-looking statements may include statements about the acquisition of Wincor Nixdorf, the effects of the acquisition on the businesses and financial conditions of Diebold or Wincor Nixdorf, including synergies, pro forma revenue, targeted operating margin, net debt to EBITDA ratios, accretion to earnings and other financial or operating measures.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance and actual results of operations, financial condition and liquidity, and the development of the industries in which the combined company operates may differ materially from those made in or suggested by the forward-looking statements contained in this document. In addition, risks and uncertainties related to the acquisition include, but are not limited to, the ability to successfully integrate the businesses of Diebold and Wincor Nixdorf, the timing, receipt and terms and conditions of any governmental and regulatory approvals that could reduce anticipated benefits or cause the parties to abandon the business combination, risks associated with the impact of the business combination agreement, the contemplated domination and profit and loss transfer agreement and any related litigation may have on the business and operations of the combined company, risks related to disruption of management time from ongoing business operations due to the acquisition, and the risk that the acquisition could have an adverse effect on the ability of the combined company to retain and hire key personnel and maintain relationships with its suppliers, and on its operating results and businesses generally.

These risks, as well as other risks are more fully discussed in Diebold’s reports filed with the SEC and available at the SEC’s website at www.sec.gov. Any forward?looking statements speak only as at the date of this document. Except as required by applicable law, neither Diebold nor Wincor Nixdorf undertakes any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

i Expected pro forma net debt/EBITDA includes contributions from both Diebold, Incorporated and Wincor Nixdorf as if both companies were operating as a single entity for the 12 months ending September 30, 2016.  Net debt is defined as long-term debt plus short-term debt minus cash and cash equivalents.  Diebold’s management believes that given the significant cash, cash equivalents and other investments on its balance sheet that net cash against outstanding debt is a meaningful net debt calculation.

Diebold defines EBITDA as net (loss) income excluding income tax (benefit) expense, net interest, and depreciation and amortization expense. Diebold defines Adjusted EBITDA as EBITDA before the effect of the following items: income from discontinued operations, net of tax, share-based compensation, foreign exchange loss, net, other (expense) income miscellaneous, net, restructuring expense, and non-routine expenses, net. These are non-GAAP financial measurements used by management to enhance the understanding of our operating results. EBITDA and Adjusted EBITDA are key measures Diebold uses to evaluate our operational performance. Diebold provides EBITDA and Adjusted EBITDA because it believes that investors and securities analysts will find EBITDA and Adjusted EBITDA to be useful measures for evaluating Diebold’s operating performance and comparing its operating performance with that of similar companies that have different capital structures and for evaluating Diebold’s ability to meet its future debt service, capital expenditures, and working capital requirements. However, EBITDA and Adjusted EBITDA should not be considered as alternatives to net income as a measure of operating results or as alternatives to cash flows from operating activities as a measure of liquidity in accordance with GAAP.

Contacts:

Media Relations:
Mike Jacobsen
APR
+1 330 490-3796
michael.jacobsen@diebold.com

Investor Relations:
Steve Virostek
+1 330 490-6319
stephen.virostek@diebold.com

SOURCE: Diebold, Incorporated

Wincor Nixdorf AG reports 10% increase in Net sales during first nine months of its current fiscal year

Paderborn, Germany, 2016-Aug-02 — /EPR Retail News/ — Having completed the first nine months of its current fiscal year, Wincor Nixdorf AG remains on a clear path of growth and is reaping the rewards of its restructuring program more rapidly than originally projected. Net sales increased by 10%, taking the figure to €1,938 million (previous year: €1,768 million).

Operating profit (EBITA) before non-recurring items amounted to €155 million (€75 million). After non-recurring items EBITDA was up at €146 million (€40 million). Profit for the period, which takes into account transaction costs incurred to date in respect of the business combination between Diebold and Wincor Nixdorf, stood at €89 million (€25 million). In presenting its results for the third quarter, Wincor Nixdorf also set out in more concrete terms its guidance for the full fiscal year 2015/2016. Net sales are expected to grow by approximately 6%.

Operating profit (EBITA) before non-recurring items is likely to total €190 million. Non-recurring items are expected to amount to between €0 and plus 30 million, consisting of restructuring expenses on the one hand and positive effects from M&A activities on the other. “Overall, we can look forward with confidence,” said CEO & President Eckard Heidloff. “Wincor Nixdorf has done its homework, and plans for the business combination with Diebold are progressing well,” he went on to explain. “Together, we are looking to create a powerful new IT company that is an innovative and reliable partner to both retail banks and retailers in these dynamic times.”

Having exceeded the minimum acceptance threshold as part of its takeover bid for Wincor Nixdorf shares, Diebold requires regulatory approval from antitrust authorities in eleven countries before the transaction can be successfully concluded. By the end of the third quarter it had received official authorizations from ten countries; regulatory approval from the anti-cartel authority in Poland was still outstanding. Wincor Nixdorf and its US counterpart Diebold remain confident that the business combination will be concluded during the summer months of 2016. Integration planning is already underway at all levels within the two companies to ensure smooth assimilation as soon as the business combination has been finalized.

Net sales: slight increase in Banking, strong growth in Retail
The Banking segment saw net sales increase by 1% to €1,164 million in the first nine months of the fiscal year (€1,149 million). After non-recurring items, Banking segment EBITA reached €99 million; this figure includes €9 million in expenses from non-recurring items. Excluding expenses from non-recurring items, Banking segment EBITA rose by €56 million to €108 million (€52 million). This corresponds to growth of 108%. Net sales generated in the Retail segment were lifted by 25%, taking the figure to €774 million (€619 million) for the reporting period. EBITA recorded by the Retail segment, which includes non-recurring items that offset each other, rose by €24 million year on year to €47 million in the reporting period (€23 million). This corresponds to growth of 104% in the Retail segment.

Growth in all regions after first nine months
In Germany, net sales for the first nine months of the fiscal year were 5% higher year on year at €425 million (€404 million). Germany contributed 22% (23%) to total net sales at Group level. In the third quarter of the fiscal year, net sales generated in Germany increased by 13% year on year to €143 million (€127 million). Net sales generated in Europe (excluding Germany) over the first nine months of the fiscal year were up 11% at €906 million (€817 million). This region contributed the largest part of total net sales for the Group at 47% (46%). In the third quarter, net sales in the region covering Europe (excluding Germany) stood at €293 million (€263 million), which corresponds to a year-on-year increase of 11%.

Asia/Pacific/Africa saw net sales rise by 3% to €355 million in the first nine months of the current fiscal year (€346 million). Thus, the Asia/Pacific/Africa region contributed a share of 18% (20%) to total net sales for the Group. Third-quarter net sales in Asia/Pacific/Africa rose by 4% to €116 million (€112 million). The region encompassing the Americas saw net sales increase by 25% in the first nine months of the fiscal year, taking the total to €252 million (€201 million). As a result, the proportion of Group net sales generated in the Americas was 13% (11%). In the third quarter, net sales in the region were up 33% at €77 million (€58 million).

Net sales up for Hardware and Software/Services
In the first nine months of the fiscal year, net sales attributable to the Hardware business rose by 17% to €851 million (€726 million). Net sales from Software/Services increased by 4% to €1,087 million (€1,042 million).
The share of total net sales generated by the Hardware business was lifted to 44% in the period under review (41%). Correspondingly, the proportion of total net sales from Software/Services fell to 56% (59%).

Contact:
Phone: +49 5251 / 693 30
E-Mail: info@wincor-nixdorf.com

Source: Wincor Nixdorf

Wincor Nixdorf AG announces management appointments

Paderborn, Germany, 2016-Mar-04 — /EPR Retail News/ — The Supervisory Board of Wincor Nixdorf AG has extended, earlier than scheduled, the contracts of CEO & President Eckard Heidloff as well as Deputy CEO & President and CFO Dr. Jürgen Wunram by three years until February 28, 2019. The former contracts had been set to terminate at the end of January 2017 (Dr. J. Wunram) and the end of February 2017 (E. Heidloff).

In addition, the Supervisory Board has appointed former Senior Vice President Dr. Ulrich Näher as a further member of the Board of Directors effective from March 1, 2016. His contract will cover a period of three years. As an Executive Vice President and member of the Board of Directors, Dr. Ulrich Näher will oversee the Systems business unit, which is responsible for the global hardware business of Wincor Nixdorf. Therefore, including Olaf Heyden, the Board of Directors of Wincor Nixdorf AG will consist of four members.

Press Contact

Press/Financial Press

Andreas Bruck
Head of Corporate Communications
Phone: +49 5251 693 5200
E-Mail: andreas.bruck@wincor-nixdorf.com

Press/Trade Press

Dr. Thomas Daubenbüchel
Head of Press and Editorial Office
Phone: +49 5251 693 5212
E-Mail: thomas.daubenbuechel@wincor-nixdorf.com

Ulrich Nolte
Phone: +49 5251 693 5211
E-Mail: ulrich.nolte@wincor-nixdorf.com

Trade Press

Claudia Wendorff-Goerge
Phone: +49 5251 693 5203
E-Mail: claudia.wendorff-goerge@wincor-nixdorf.com

Wincor Nixdorf AG fiscal 2014/2015 operating results: Software/Services Up, Hardware Down; No Dividend Payment

Preliminary results for fiscal 2014/2015 (Sept. 30)

PADERBORN, GERMANY, 2015-11-10 — /EPR Retail News/ — Wincor Nixdorf AG ended fiscal 2014/2015 slightly better than anticipated in the revised outlook issued at the end of the first half. Net sales totaled €2,427 million, down 2% on the prior-year figure (2013/2014: €2,469 million). Operating profit before restructuring measures amounted to €102 million (€135 million without exceptional items). After taking restructuring measures into account, EBITA was €22 million, reflecting the €80 million incurred as expenses under the restructuring program initiated during the fiscal year just ended. Thus, the Group’s profit for fiscal 2014/2015 stood at €8 million (€104 million). Against the backdrop of ongoing activities to restructure and reposition the Group, Wincor Nixdorf considers itself well placed to achieve a turnaround in its business performance in the current fiscal year 2015/2016. Wincor Nixdorf expects to generate slight growth in net sales, while operating profit is predicted to rise substantially by an estimated 50% to €150 million. As the amount still outstanding with regard to restructuring expenses is expected to be €40 million for the fiscal year, Wincor Nixdorf anticipates that EBITA after restructuring expenses will stand at €110 million. “Particularly when it comes to earnings, we feel that the positive start to our first quarter lends support to our outlook for the current fiscal year,” said Eckard Heidloff, CEO & President of Wincor Nixdorf, in commenting on the company’s forecast for the fiscal year.

Wincor Nixdorf Aktiengesellschaft and Diebold, Incorporated, with registered office in North Canton, Ohio, United States of America, are currently in discussions regarding a potential business combination.

On 24 September 2015 the companies entered into a term sheet regarding the key parameters of a potential strategic business combination, to be implemented through a public tender offer for all issued and outstanding shares of Wincor Aktiengesellschaft. These discussions are ongoing.

Over the course of the current fiscal year 2015/2016 Wincor Nixdorf will be looking to make visible progress in the fields targeted for strategic growth, in addition to pursuing substantial cost savings on top of those already achieved. In total, the company expects a positive impact on earnings equivalent to €50 million in 2015/2016 as a result of these efforts. Among the key factors generating forward momentum are measures implemented swiftly by Wincor Nixdorf – and already completed – with a view to reducing costs and raising efficiency levels. Software and software-related services are also set to generate further substantial increases in Group earnings.
In this context, the company expects the main outlines of the seven-point “Delta” program to be reflected even more clearly in its business performance. The program is designed to speed up the expansion of Software and Professional Services operations and to further boost profitability in the Services business, which will also include expansion in the high-end field such as Managed Services and Outsourcing. It also involves significant capacity adjustments on the Hardware side so that the Group can respond more effectively to market volatility yet still maintain its significant abilities as an innovator. Furthermore, now that the company’s cashless and mobile payment operations have been established as a separate unit, they should be able to develop more rapidly and make an additional contribution to growth at Group level. “The transformation program we have initiated will bring significant changes to our Group. The effects that have already become visible within our business serve as confirmation that the approach we have taken is correct and that we must continue to pursue these measures with the necessary vigor,” said CEO & President Eckard Heidloff.

The overall objective of the realignment process that the company is currently undergoing is to insure that Wincor Nixdorf can in future benefit more fully from the rapidly advancing trend of digitalization, particularly in industrialized countries. At the same time, Wincor Nixdorf will see a gradual improvement in its operational capacity to respond to or smooth out potential fluctuations, e.g., in the emerging markets, without compromising its abilities as an innovator.

Global Net Sales Dampened by BRIC Countries in Fiscal 2014/2015.
The downturn in Wincor Nixdorf’s business in the three key BRIC markets of Brazil, Russia, and China left a noticeable mark on business in the various reporting regions when compared to prior-year figures. All three countries, classified as Emerging Markets, are located in different reporting regions and exerted downward pressure on net sales in the respective categories.

In Germany, net sales fell by 6% to €555 million (2013/2014: €588 million). This was attributable primarily to weaker retail business compared to the previous fiscal year, which had benefited from several large-scale projects. On this basis, Germany’s share of the Group’s total net sales fell to 23% (2013/2014: 24%). In Europe (excluding Germany), net sales declined by 4% to €1,097 million (2013/2014: €1,142 million). This was due largely to a year-on-year reduction in net sales from business activities in Eastern Europe, with Russia proving particularly unfavorable. As a result, Europe’s (excluding Germany) share of the Group’s total net sales fell to 45% (2013/2014: 46%). The Asia/Pacific/Africa region saw net sales rise by 8% to €480 million (2013/2014: €445 million). Despite a marked downturn in business in China, the Group managed to generate forward momentum in the majority of the Asian/Pacific countries. The overall contribution of Asia/Pacific/Africa to the Group’s total net sales rose to 20% (2013/2014: 18%). As a region, the Americas recorded net sales of €295 million, which was comparable to last year’s figure (2013/2014: €294 million). The expansion of European retailers into the United States had prompted particularly extensive purchase orders in fiscal 2013/2014. Thus, the proportion of Group net sales generated in the Americas was unchanged year on year at 12% (2013/2014: 12%).

Divergent Performances by the Segments.
Against the backdrop of prevailing economic conditions and sluggish investment spending, the Banking segment saw net sales rise slightly in the period under review. By contrast, net sales in the Retail segment declined. Business in this area was adversely affected by tentative investment spending on the part of large retail companies, particularly in Europe. The Banking segment accounted for 65% of total net sales (2013/2014: 63%), while the Retail segment contributed 35% (2013/2014: 37%) to total net sales. Net sales within the Banking segment totaled €1,582 million (2013/2014: €1,566 million). This corresponds to a year-on-year increase of 1%. In the Retail segment net sales fell by 6% to €845 million (2013/2014: €903 million).

Software/Services Up, Hardware Down.
The downturn in hardware sales that affected the previous year’s results continued during the year under review. This led to a decline in the Group’s total net sales, as the moderate level of growth achieved by Software and Services was not enough to compensate for the decline in Hardware. Additionally, the share of Hardware in total net sales for the Group continued to fall; correspondingly, the business streams Software and Services expanded their share to 58% (2013/2014: 54%). At €1,015 million, consolidated net sales of Hardware were down 10% on the previous year (2013/2014: €1,127 million). This substantial year-on-year decline was caused by a number of factors, the three most important being lower sales of banking hardware in key emerging markets, base effects due to the fact that the previous year’s figure for the retail business included several particularly large orders, and finally the ongoing decline in market prices. As a result of this downturn, the contribution made by the Hardware business to total consolidated net sales fell to 42% (2013/2014: 46%). By contrast, net sales relating to Software/Services grew by 5% to €1,412 million during the year under review (2013/2014: €1,342 million). In part, this growth was driven by further increases in Software and Professional Services. Additionally, the area of IT Services saw net sales expand in the period under review. This was attributable to more buoyant business with Product-relates Services as well as Managed Services. Outsourcing business developed at a level comparable to last year’s performance.

Personnel Restructuring Proceeds.
In total, 9,100 people were employed within the Group worldwide as of September 30, 2015 (2013/2014: 9,198). Existing personnel restructuring measures were given substantial impetus with the launch of the Delta program. Over the fiscal year under review, 450 jobs were cut across the Group, covering all the points of the program, while around 120 new jobs were created as part of the company’s nearshoring efforts. Additionally, some 200 employees were recruited with regard to project-related activities.

In regional terms, the main focus of HR downsizing measures was on North and Latin America as well as Asia/Pacific. Wincor Nixdorf also further reduced its staffing levels in Germany. In the region covering Europe, the number of redundancies and new appointments was roughly equal. In Germany, the number of employees at the end of the year under review stood at 3,689 (2013/2014: 3,738). The number of staff employed outside Germany fell to 5,411 (2013/2014: 5,460).

R&D Spending Remains High.
Wincor Nixdorf invested a total of €90 million in R&D activities over the reporting year as a whole (2013/2014: €98 million). The R&D ratio stood at 3.7% (2013/2014: 4.0%).

Proposal for Fiscal 2014/2015: No Dividend Payment.
In view of the low level of annual profit of €8 million, the Board of Directors will propose that the company does not distribute a dividend in respect of fiscal year 2014/2015. For fiscal 2013/2014, the dividend paid by the company was €1.75 per share.

Press Contact

Press/Financial Press

Andreas Bruck
Head of Corporate Communications
Phone: +49 5251 693 5200
E-Mail: andreas.bruck@wincor-nixdorf.com

Press/Trade Press

Dr. Thomas Daubenbüchel
Head of Press and Editorial Office
Phone: +49 5251 693 5212
E-Mail: thomas.daubenbuechel@wincor-nixdorf.com
Ulrich Nolte
Phone: +49 5251 693 5211
E-Mail: ulrich.nolte@wincor-nixdorf.com

Trade Press

Claudia Wendorff-Goerge
Phone: +49 5251 693 5203
E-Mail: claudia.wendorff-goerge@wincor-nixdorf.com

SOURCE: Wincor Nixdorf

Wincor Nixdorf AG presents its results for the first half of the current fiscal year 2014/2015; outlined details of the restructuring program

Paderborn, Germany, 2015-4-23 — /EPR Retail News/ — On presenting its results for the first half of the current fiscal year 2014/2015, Wincor Nixdorf AG outlined details of the restructuring program launched by the company. Prior to this, the company had already announced that it would fail to meet its original guidance issued for the current fiscal year. In the first half of fiscal 2014/2015 net sales fell by 2% to €1,208 million (previous year: €1,230 million), while operating profit (EBITA) declined by 31% to €47 million (€68 million). The EBITA margin fell by 1.6 percentage points to 3.9% (5.5%). Profit for the first six months of the fiscal year amounted to €31 million (€45 million), down 31% on the previous year’s figure for the first half. The year-on-year contraction is attributable primarily to a 12% decline in net sales from the company’s Hardware business; growth generated by Software and IT Services was not sufficiently strong to offset the aforementioned downturn. Spanning a period of several years, the restructuring measures to be implemented by Wincor Nixdorf are aimed at counteracting these developments. The aim is to achieve an additional positive annual earnings effect of €120 million in fiscal 2017/2018, which will take shape in the coming two fiscal years. In parallel, expenses are also expected to amount to €120 million in total. In implementing the program, Wincor Nixdorf will reduce its current headcount by around 1,100 (12%) over the next three years. As regards the current fiscal year 2014/2015, Wincor Nixdorf now anticipates that net sales will be 3-5% down on the prior-year figure. EBITA before restructuring measures is expected to total €100 million. As the company will additionally incur costs of €80 million, Wincor Nixdorf anticipates that EBITA after restructuring expenses will stand at €20 million.

In initiating the fundamental realignment of its activities during the second quarter of fiscal 2014/2015, Wincor Nixdorf is addressing the issue of deteriorating business conditions in key emerging markets such as Russia and China as well as the sluggish recovery in investment spending throughout Europe. Another factor necessitating realignment is the continuing erosion of prices in the company’s Hardware business. This can no longer be offset in the long term, due in part to insufficient economies of scale. At the same time, the trend towards digitization embraced by both banks and retailers has added to the momentum of change, with software and high-end service solutions playing a prominent role and opening up opportunities for growth at Wincor Nixdorf. “We are looking to exploit the market potential of Software and IT Services to an even greater extent, as well as making our Hardware business more cost-effective,” emphasized CEO & President Eckard Heidloff.

Following up on this, the strategic objective of measures initiated as part of a seven-point program is to accelerate Wincor Nixdorf’s transition to a software and IT services company with attractive profit margins. At the same time, the Hardware business, which remains important to the company, is to be redimensioned with regard to the vertical range of development activities within the value chain as well as in respect of global production and supply chains; this will be accompanied by significant adjustments to capacity levels. The guiding maxim is to achieve sufficient margins even on the basis of lower unit sales.

The aim of these restructuring activities is to achieve a positive effect on earnings equivalent to €120 million as from fiscal 2017/2018. For the next two fiscal years, the earnings effects are expected to be €40-50 million (2015/2016) and €80-100 million (2016/2017). By contrast, expenses are expected to total €120 million, of which €80 million will be attributable to fiscal 2014/2015 and €40 million to 2015/2016.

Strategic Levers for Company Restructuring.
Fast-track expansion of the Software business is to be achieved principally through a combination of additional investment and restructuring of existing capacities at a staffing and operational level. Additionally, the company will be aiming to make acquisitions within the Software business. Overall, Wincor Nixdorf reaffirms its goal of doubling net sales from Software within a period of five years (€600 million in 2017/2018). The Services business is to be taken forward to the next level, with an emphasis on improved cost-effectiveness as well as significant growth in Managed Services and Outsourcing.

The company’s Hardware business will remain an important pillar. However, capacity levels in this area are to be scaled back.

As a further strategic measure, the successful Cashless Payment business unit, which is expected to increase its net sales to €50 million in fiscal 2014/2015, will be carved out to become an independent operation. The intention is to position the fledgling company in the form of a start-up with all the associated freedom of maneuver. This may serve, for example, as a platform for partnerships or collaborative activities in the payment market or to facilitate investment opportunities.

Significant Reduction in Existing Workforce – Staff Upsizing in Other Areas.
In implementing the program, Wincor Nixdorf will reduce its current headcount by around 1,100 (12%) over the next three years. This will affect around 500 employees in Germany and 250 in other European countries. The company is planning redundancies as well as a transfer to outsourcing-based employment structures.

The Group-wide reduction in personnel levels will contrast, in the coming years, with staff upsizing in the growth areas of Software and IT Services. Thus, the net outcome of these measures will be a reorganized personnel structure for Wincor Nixdorf.

In summary, the strategic repositioning of Wincor Nixdorf will encompass the following seven points (1): – Considerable acceleration of growth in the Software business and associated Professional Services – Expansion of high-end IT Services for operations management such as Managed Services and Outsourcing – Fundamental realignment of Hardware strategy – Carve-out of business unit for Cashless Payment – Program for price optimization – Streamlining of administration costs – Organizational support to implement changes

Change at the Helm of Banking.
Member of the Board of Directors Jens Bohlen will leave the company effective from April 30, 2015. For the time being, the Board of Directors of Wincor Nixdorf AG will thus be reduced to three members. With Jens Bohlen leaving the company, responsibility for the global Banking business at Wincor Nixdorf will change hands. As from May 1, 2015, responsibility for the company’s global Banking business will be transferred to Christian Weißer, who has been appointed as Senior Vice President. In his most recent position, he headed the company’s Banking business in Europe.

Slight Growth in Banking After First Six Months; Downturn in Retail.
Net sales in the Banking segment rose slightly by 1% to €783 million (€778 million) in the first half of fiscal 2014/2015. In the second quarter, net sales were down by 4% year on year. EBITA for the Banking segment totaled €29 million (€51 million), which was 43% down on the figure posted for the same period a year ago. Net sales generated in the Retail segment fell by 6% in the first six months of the fiscal year and stood at €425 million (€452 million). In the second quarter, net sales were 4% lower compared to the previous year. EBITA generated in the Retail segment rose by 6% to €18 million (€17 million) in the reporting period.

Growth in Asia/Pacific/Africa – Downturn in Germany and Europe.
In Germany, net sales fell by 4% to €277 million (€290 million) in the first six months, thus accounting for 23% (24%) of the Group’s total net sales. In the second quarter, net sales in Germany stood at €138 million (€140 million), which corresponds to a downturn of 1%.
At €553 million (€577 million), Europe (excluding Germany) saw a year-on-year decline in net sales of 4% in the first six months of the current fiscal year. In the first half of the fiscal year, Europe (excluding Germany) contributed the largest part of total net sales for the Group at 46% (47%). In the second quarter of the fiscal year, net sales in Europe (excluding Germany) were 7% lower at €254 million (€273 million).
In Asia/Pacific/Africa, the Group managed to lift net sales to €234 million (€216 million) in the first six months of the current fiscal year. This corresponds to an 8% increase on the prior-year figure. Asia/Pacific/Africa contributed a share of 19% (17%) to total net sales for the Group. Second-quarter net sales in Asia/Pacific/Africa rose by 14% to €115 million (€101 million).
In local currencies, the Americas recorded a 12% decline in net sales in the first half of the fiscal year. Translated into euros, this corresponded to a downturn in net sales by 2% to €144 million (€147 million). On this basis, the proportion of total net sales generated by the Americas was unchanged year on year at 12%. In the second quarter of the fiscal year, net sales in the region were down 22% at €61 million (€78 million).

Increase in proportion of net sales from Software/Services.
In the first half, net sales attributable to the Hardware business declined by 12% year on year to €504 million (€575 million). In the Software/Services business, by contrast, net sales rose by 7% to €704 million (€655 million). The share of total net sales generated by the Hardware business fell to 42% (47%) in the period under review. Correspondingly, the proportion of total net sales derived from Software/Services rose to 58% (53%).

(1) For further information on the restructuring program, please refer to the Investor Relations section on www.wincor-nixdorf.com.

Contact person:
Andreas Bruck
Tel 05251/ 6935200

This document contains forward-looking statements that are based on current estimates and assumptions made by the management of Wincor Nixdorf AG. Under no circumstances shall these statements be considered as constituting a guarantee that such expectations are correct or will materialize. The future performance as well as the results actually achieved by Wincor Nixdorf AG and its affiliated companies are subject to various risks and uncertainties. Therefore, they may differ materially from those expressed or implied by forward-looking statements. A number of these factors are beyond Wincor Nixdorf’s sphere of influence and cannot be forecast or predicted with any level of certainty, e.g. those factors relating to future economic conditions or the actions of competitors and other market participants. Wincor Nixdorf disclaims any obligation to update any forward-looking statements to reflect subsequent events or circumstances.