Wincor Nixdorf: Innovation and healthy figures mark the opening of Wincor World 2006

At the opening of Wincor World 2006, Wincor Nixdorf is in excellent shape, both technologically and financially. During the first quarter (October 1 to December 31) of its financial year, Wincor Nixdorf AG seamlessly continued the positive development of the previous year: the Group’s revenues rose by 7 % to 488 million euros, and its operative earnings (EBITA) increased by 11 % to 39 million euros. In addition to this encouraging business development, the positive response to the international trade fair Wincor World 2006 also justifies the Group’s optimism. More than 7000 visitors from the retail and banking sectors of around 50 countries are expected in Paderborn from January 24 - 26, 2006 to attend this event, which has become a highly-regarded platform worldwide for information exchange and discussion.

In addition to the overall positive business development, the decisive factor in the first quarter’s increased revenue was the healthy end-of-year situation for fiscal 2005. Tight management of costs contributed to an improved result and more than compensated for a slight decline in gross margins. The net profit for the period before carve-out expenses rose to 22 million euros, placing it 22% above the value for the previous year (€18 million).

In view of these positive first-quarter figures for revenue and results and the generally advantageous conditions, President and CEO Karl-Heinz Stiller was optimistic at the opening of Wincor World retail and banking fair in Paderborn: “Our progress in this first quarter confirms our expected growth for the entire financial year. We anticipate that revenues will increase by 8% and our EBITA by 10%.”

Stiller stressed that a number of large outsourcing projects in the branch activities of well-known financial institutions had been initiated at the beginning of the new financial year. Projects of this type, which are an expression of the changing attitudes of banks toward their business, open up additional business potential for Wincor Nixdorf.

During the first quarter, Wincor Nixdorf added 346 employees to its staff, in particular to develop its worldwide services business and promote its expansion in growth markets. As of December 31, 2005, the Group employs 7283 people.

More than 700 developers demonstrate the results of their work

Over 700 of Wincor Nixdorf’s employees are engaged in research and development, and the results of their work will have a special place in the limelight of Wincor World. As Karl-Heinz Stiller points out, it is remarkable that the processes that many banks and retail enterprises currently implement to meet the requirements of the future are increasingly making use of identical technologies. For example, image processing expertise is just as important in reverse vending machines for beverage containers as in ATMs with deposit technology. Wincor Nixdorf successfully markets both reverse vending systems and deposit modules for banknotes and checks. During the last few months, for example, it received orders for over 3600 reverse vending systems from German retailers alone. And Stiller notes, “We consider ourselves to be the leading innovator in the area of ATMs with cash/check deposit modules” – a fact borne out by Wincor Nixdorf’s success with these systems at banks in Spain, France, Poland, Portugal, UK and Turkey.

The same technologies are also used in developing cash management solutions for retail and banking. “Here, for example, we take advantage of the experience we’ve gained as pioneers in the field of cash recycling technology,” says Stiller. The know-how transfer into the retail sector has been a success: Wincor Nixdorf completed a very promising pilot project with a service station company, a project involving cash-recycling systems of the type that automate cash payment and dispensing at the supermarket POS. The result of implementing these closed systems was increased security. Robberies – which are a particular problem for service stations – become pointless. These systems also considerably reduce the cost of additional cash handling processes and the service station staff is able to spend more time assisting customers.

End-to-end optimization of banks’ cash processes

Comprehensive optimization of cash processes is also a top priority in the banking sector. Wincor Nixdorf supports this in two ways, with an extended portfolio of software-based consulting tools for the optimization of cash processes, and with hardware solutions – such as the new cassette-based recycling system ProCash 4000 with coin module. This system has already proved successful internationally in productive use and ensures rapid and customer-friendly handling of bulk cash transactions.

Wincor Nixdorf has further developed its software portfolio for the operation of self-service systems and front-office peripherals on a network-centric basis, a principle that is applied when developing software for both banks and retail enterprises. Software that is developed in accordance with this principle no longer needs to reside entirely on the terminals; instead, it is held on a centralized server. This makes it possible to reduce the cost of software maintenance and distribution, and also simplifies the process of integrating background systems. One example from Wincor Nixdorf’s enhanced banking portfolio is the extended version of our successful FONet software, now with additional functions. This enables both ATMs and automated teller safes to be integrated into attended self-service. The advantage of this is that all the branch’s systems now offer the staff an identical look and feel.

Revolution at the checkout with new retail technologies

In the retail sector, in line with the motto of the symposium “Revolution at the Checkout”, which will be held at Wincor World on January 26, Wincor Nixdorf is introducing numerous new automation and self-service solutions for the optimization of store processes. Wincor Nixdorf has extended its Beetle iScan product family to cover the self-checkout concept, supporting the various processes used by self-service checkouts. Whether the customer scans, packs, and pays for his or her own purchases at a self-checkout terminal, or whether scanning and paying are handled at two separate systems, Wincor Nixdorf has the right solution, developed in close cooperation with retail companies. The software portfolio has also been rigorously extended: Wincor Nixdorf’s branch software solutions TP.net and TPLinux can now control all the technology used in a retail branch – from mobile systems to reverse vending systems. Fifteen companies worldwide have already chosen this software.

New service company for reverse vending systems

For the growing number of reverse vending systems for returned beverage containers in Germany, Wincor Nixdorf now offers comprehensive service provided by the newly founded Wincor Nixdorf Retail Services GmbH. During the initial phase, 40 technicians will guarantee qualified on-site service with average arrival times of four hours. An online service center has been set up for this purpose in Ilmenau, Thuringia, and the technicians’ assignments are controlled from the central office in Hilden.

The most important topic in the area of services is once again Wincor Nixdorf’s modular outsourcing offer, which enables banks and retail enterprises to increase their level of added value, concentrate on their core competences and improve their bottom lines. For financial institutions, Wincor Nixdorf has a portfolio of outsourcing offers that ranges from the self-service process chain to IT outsourcing for the entire branch. The basis of Wincor Nixdorf’s services as outsourcing provider, plus the control and monitoring engine for all its service processes, is Wincor Nixdorf’s eServices Platform. This up-to-date worldwide standardized platform makes it possible to carry out complex service processes more rapidly and more effectively, and to control them using individually negotiated service level agreements.