EANS-Adhoc: WINCOR NIXDORF Aktiengesellschaft / Wincor Nixdorf specifies business outlook: significant reduction in operating profit - extensive restructuring program initiated (with document)

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16.04.2012

Paderborn, April 16th, 2012. On completing the first two quarters of
fiscal 2011/2012, Wincor Nixdorf AG has further specified its
prospects for the financial year as a whole. While the company
anticipates that net sales will develop at a level comparable to that
achieved in the previous year (EUR2,328 million in FY 2010/2011)
operating profit (EBITA) is expected to contract significantly to
around EUR100 million (prev. year: EUR162 million). This takes into
account costs of approx. EUR40 million attributable to a
restructuring program already initiated by the company.

The earnings outlook has been revised downwards primarily as a result
of the continued and substantial decline in net sales generated
within the Banking segment, which has been accompanied by significant
pressure on margins in the Hardware business. The contraction in
business was attributable, firstly, to subdued investment spending
still evident throughout the western European banking market in
particular, as a direct result of the sovereign debt crisis.
Secondly, net sales were adversely affected by the fact that Banking
business in the emerging countries failed to develop to the extent
originally anticipated and that the solutions portfolio tailored
specifically to this business has yet to be taken forward to the
appropriate level. Primarily as a result of these developments in the
Banking business, net sales attributable to Hardware declined by 13%
at Group level compared to the same period a year ago. By contrast,
net sales from the Software/Services business rose by 5%.

In view of this performance, the company has initiated a process of
strategic realignment with regard to its activities, launching an
extensive restructuring program that is currently being implemented.
Among other measures, the staff in western Europe in particular is to
be downsized by more than five hundred; Germany will account for
around half of this figure. The aim of restructuring is to extend and
substantially strengthen global competitiveness, as well as targeting
business activities at the emerging markets faster and in a more
pronounced manner. To this end, Wincor Nixdorf will significantly
tighten the management, support and administrative functions of its
international business organization. For instance, the resources of
several countries are to be brought together as part of new, larger
units, while at the same time the structures of managerial
responsibility for the global Banking and Retail segments are to be
sharpened substantially.

In parallel, the company will relocate to the Asia/Pacific region key
capacities required for future growth in the emerging markets. As
part of this process, development activities in this region are to be
further expanded, while those located in Europe are to be scaled
back. In taking this route, the company will be looking to develop
hardware for the emerging markets in particular, as well as
establishing an appropriately targeted portfolio of products and
services as soon as possible. Additionally, in future a larger
proportion of products within the existing portfolio is to be
manufactured in China, while at the same time production capacities
in Germany and Singapore are to be adjusted accordingly.

The downsizing measures are to be implemented in two stages, with one
half of the staff reduction taking place in the current 2011/2012
fiscal year and the other half in the coming 2012/2013 fiscal year.
As regards the total headcount of those employed within the Group,
there are likely to be contrary effects due to the recruitment of
personnel in areas of significant growth, such as Software/Services,
but also in growth regions.

At the beginning of the current fiscal year, Wincor Nixdorf had
already announced that it could not rule out entirely a significant
contraction in operating profit compared to the previous fiscal year.
In view of the uncertainties within the European banking market in
particular, the company had given a skeptical assessment of the
market conditions for business development and - depending on net
sales performance - had also outlined the possibility of a
significant decline in earnings. The company considers the latest
progression of business over the course of the first two quarters as
confirmation of this assessment.

In the first half of fiscal 2011/2012, net sales of the Wincor
Nixdorf Group declined by 4% to EUR1,156 million (6 months 2010/2011
[referred to hereafter as "prev. year"]: EUR1,208 million). In the
same period, operating profit stood at EUR45 million and was thus
down 49% on the previous year's figure for this period (prev. year:
EUR88 million). The EBITA margin fell by 3.4 percentage points to
3.9% (prev. year: 7.3%). Profit for the first six months of the
fiscal year declined to EUR27 million, thus contracting by 53% year
on year (prev. year: EUR58 million). All figures mentioned with
regard to the first half of the fiscal year are based on preliminary
figures - the detailed financial results for the first half of the
fiscal year are to be published on April 26, 2012.

Attachments with Announcement:
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http://resources.euroadhoc.com/us/5LNc31CT

Further inquiry note:
Andreas Bruck
Telefon: +49 (0)5251 693 5200
E-Mail: andreas.bruck@wincor-nixdorf.com

end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/5LNc31CT

issuer: WINCOR NIXDORF Aktiengesellschaft
Heinz-Nixdorf-Ring 1
D-33106 Paderborn
phone: +49 (0)5251 693 30
FAX: +49 (0)5251 693 6767
mail: info@wincor-nixdorf.com
WWW: http://www.wincor-nixdorf.com
sector: Computing & Information Technology
ISIN: DE000A0CAYB2
indexes: MDAX, CDAX, Prime All Share
stockmarkets: free trade: Hannover, München, Hamburg, Stuttgart, regulated
dealing: Berlin, Düsseldorf, regulated dealing/prime standard:
Frankfurt
language: English