Wincor Nixdorf has a successful first quarter and a good start to fiscal 2005/2006 In the first quarter of its new fiscal year, Wincor Nixdorf AG has kept the momentum going from its good performance last year, with Group net sales up 7 % to € 488 million (previous year: € 455 million). After adjusting for exchange rate fluctuations between the euro and the US dollar, revenue growth was 5 %. Operating profit before amortization (EBITA) was 11% ahead at € 39 million (previous year: € 35 million). The rise in revenue was down to good overall performance within the business and also favorable end-of-year trading in 2005. The rise in profit was aided by tight management of costs which succeeded in over-compensating to a slight fall in gross margin. Net profit for the period before carve-out expenses rose to € 22 million, 22 % ahead of the equivalent figure last time (€ 18 million). Looking at the good revenue and profit figures in the first three months as well as the overall environment which are still seen as favorable, President and CEO Karl-Heinz Stiller was up-beat at the start of Wincor World, the banking and retail trade fair, in Paderborn, “This first-quarter performance confirms our growth forecasts for the full fiscal year. We’re expecting to see growth of 8 % in revenue and 10 % in EBITA.” According to Stiller, this will be driven by ongoing international growth – in particular in other European countries – and by the improved German business which is seeing increasing investment activity in banking and growing sales of reverse vending systems in retail. In expanding its employee base by 346 to 7,283 (as of December 31, 2005), the Company is also extending its worldwide services business and continuing to drive expansion into growth markets. Net sales in growth regions ahead of the markets Growth in Europe (excluding Germany) was 2 % higher than the excellent comparative quarter which had, itself, been helped by exceptional items. Revenue in this region came to € 265 million (€ 260 million), continuing to represent with 55 % (57 %) the largest share of Group net sales. In Germany, business was positive, as expected, with Q1 revenues climbing 8 % higher to € 124 million after a decline in the same quarter last year. As a result, the German business is contributing 25 % (25 %) of total Group revenues. In Asia and the Americas, business levels were ahead of market growth, with net sales up 18 % in US dollars and up 30 % to € 39 million (€ 30 million) after conversion to euros. This means the Americas account for 8 % (7 %) of total net sales. In Asia-Pacific & Africa – also US dollar territories – dollar revenues were 8 % ahead of the same period last year. After conversion to euros, revenue in the region moved ahead 20% to € 60 million (€ 50 million), making up 12 % (11 %) of total net sales. Growth in both business segments In the banking segment, Q1 net sales were up 12 % to € 290 million (€ 259 million) with key contributions coming from higher levels of business in Germany, good performance in the Americas and what was, overall, solid growth in the product business. The retail segment reported revenues up 1 % to € 198 million (€ 196 million). Excellent business during the period leading up to the 2005 calendar year-end meant the superb result in the same period last year – itself aided by favorable exceptional items in the UK market – was able to be beaten. Viewed by business stream, the Q1 product business improved 9 % to € 297 million (€ 273 million). Solutions and services revenue was 5 % ahead at € 191 million (€ 182 million), making up 39 % (40 %) of total business whilst product revenues contributed the remaining 61 % (60 %) of overall net sales. At the start of the new fiscal year the company launched several large outsourcing projects in the branch banking businesses of several banks. It is via projects of this kind, which are the expression of changing perceptions of the business within banks, that the Company is tapping into additional business potential. Over 7,000 visitors expected at Wincor World 2006 As well as the pleasing business performance during the first quarter, the way the Company’s own international industry trade fair, Wincor World 2006, is being received also bodes well for the future. Between January 24 and 26, 2006 over 7,000 visitors from around 50 countries are expected to attend this event in Paderborn which enjoys worldwide respect as an established forum for the exchange of knowledge and experience in the retail and banking sectors, offering visitors an overview of the newest offerings using the latest information technology to improve customer-related procedures and business processes at work within supermarkets and bank branches. The requirements of related sectors such as postal service organizations, lottery companies, the hospitality trade and service station chains are also addressed at the event.