At €2,469 million, net sales generated by AG in fiscal 2013/2014 were comparable to the amount reported for the previous financial year. The company recorded EBITA of €155 million, up 17 % on the figure posted for the previous year (2012/2013: €132 million).
This includes net proceeds from the sale of the former production facility in Singapore, amounting to €20 million, which was concluded at the end of September. The Group’s profit for the period rose by 18% to €104 million in fiscal 2013/2014 (2012/2013: €88 million). With a proposed dividend of €1.75 per share (prev. year: €1.48), Wincor Nixdorf’s dividend is set to increase by 18 %. Looking ahead to the current 2014/2015 fiscal year, the company anticipates moderate growth in net sales compared with the previous fiscal year, despite the fact that economic conditions are considered volatile at present. The expansion of business is to coincide with growth in EBITA. Taking the figure for fiscal 2013/2014 (€135 million), adjusted for exceptional items, as a starting point, Wincor Nixdorf aims to achieve a percentage increase in EBITA slightly above that of net sales. The first quarter, however, is initially expected to be weaker than in the previous year.
"The economic climate as a whole is considered to be challenging and susceptible to crises," said CEO & President Eckard Heidloff. In this context, he cited mounting uncertainties with regard to the direction taken by the global economy, not least as a result of current geopolitical tensions. He also pointed to the slowdown in Europe’s economic recovery, a trend that had been confirmed once again in recent weeks. "However, we intend to build on prevailing trends in markets offering scenarios for growth."
In Heidloff’s opinion, two key trends are of particular importance to the manner in which Wincor Nixdorf positions itself over the coming years. Within this context, the ever increasing digitization of channels to consumers has led to a sustained momentum of change, while also creating considerable challenges for banks and retailers around the globe. "Wincor Nixdorf is favorably positioned to support retail banks and retailers in their efforts to combine digital and stationary channels to the customer," said Heidloff. In the banking business, for instance, this applies to the strategies pursued in the area of branch restructuring – measures that are currently being implemented by many banks. Additionally, both banks and retailers are driving forward the concept of omni-channel operations that bring together a number of different sales channels, such as the internet, call centers, and branch or store structures. Heidloff pointed out that Wincor Nixdorf’s software portfolio, in particular, represented a key tool when it came to merging the various channels and facilitating efficient interaction.
The second trend cited by the CEO & President relates to the sustained growth of the emerging economies. Despite a slight loss in forward momentum, these markets look set to become even more important in the future, simply on the basis of demographic developments.
"On the basis of these fundamental trends, we will continue to pursue our corporate restructuring program," emphasized Heidloff. He went on to explain that the company would consider the possibility of acquisitions in support of its own activities.
Net sales up in Germany but down in Europe
The loss in forward momentum within the emerging economies, in particular, was reflected in Wincor Nixdorf’s business performance over the course of the 2013/2014 fiscal year just ended. While the company’s ambitions for growth were linked above all to this region, it was unable to meet its expectations in full. In this context, business was particularly adversely affected in Russia, Ukraine, and Turkey.
In Germany, net sales rose by 4% to €588 million (2012/2013: €567 million). On this basis, Germany’s share of the Group’s total net sales increased to 24% (2012/2013: 23%). In Europe (excluding Germany), net sales declined by 6% to €1,142 million (2012/2013: €1,216 million); this was attributable mainly to a downturn in business with Russia, Ukraine, and Turkey, as well as to persistently sluggish business in the Southern European countries of the eurozone. As a result, Europe’s (excluding Germany) share of the Group’s total net sales fell to 46% (2012/2013: 49%). The Asia/Pacific/Africa region saw net sales rise by 6% to €445 million (2012/2013: €418 million). While the pattern of growth seen in Asia/Pacific in recent years was maintained, business in the countries of the Middle East and Africa was adversely affected by political uncertainty in these regions. The overall contribution of Asia/Pacific/Africa to the Group’s total net sales rose to 18% (2012/2013: 17%). As a region, the Americas recorded growth of 11%, taking net sales to €294 million (2012/2013: €264 million). Business expanded at an encouraging rate in both North and South America. Thus, the proportion of Group net sales generated in the Americas increased to 12% (2012/2013: 11%).
Downturn in Banking, growth in Retail
In the period under review, developments in the wider economy took their toll in particular on the Banking segment, which saw business decline year on year. The Retail segment, by contrast, recorded encouraging growth. It benefited from efforts by major retail companies with global business operations to standardize their international IT infrastructures, including the associated services. The Banking segment accounted for 63% of total net sales (2012/2013: 65%), while the Retail segment contributed 37% (2012/2013: 35%) to total net sales.
Encouraging growth in Software/Services business
Following an increase in the previous fiscal year, the Hardware business contracted slightly in the 2013/2014 fiscal year. At the same time, however, the Software/Services business, which is of increasing importance to the company, recorded encouraging growth. Net sales generated from Hardware fell by 5% year on year to €1,127 million (2012/2013: €1,185 million). This downturn is attributable primarily to a loss in net sales in the emerging economies of Eastern Europe. As a result, the share of total Group net sales generated from the Hardware business fell to 46% (2012/2013: 48%). Net sales from Software/Services rose by 5% to €1,342 million (2012/2013: €1,280 million). Growth in this area was attributable to larger revenue contributions from Software as well as higher-end business such as Professional Services, Managed Services, and Outsourcing. Business associated with product-related services was comparable to the previous year’s performance, influenced by weaker Hardware business mainly in the Banking segment. Overall, the share of total Group net sales generated from the Software/Services business rose to 54% (2012/2013: 52%).
As of September 30, 2014, 9,198 people were employed by the company worldwide, 372 more than at the end of the previous year (2012/2013: 8,826). In regional terms, the main focus of new appointments was on Europe and Asia/Pacific. In Germany, the number of employees was again down on the previous year’s figure. At the end of the reporting period, the headcount in Germany stood at 3,738, down 36 on the figure for the preceding year (2012/2013: 3,774). The number of staff employed outside Germany rose by 408 to 5,460 (2012/2013: 5,052).
High level of R&D spending maintained
Wincor Nixdorf again made substantial investments in product and technology development. Research and development costs amounted to €98 million (2012/2013: €99 million). On this basis, the R&D ratio was unchanged year on year at 4.0% (2012/2013: 4.0%).
Dividend proposal: €1.75 per share
Wincor Nixdorf remains committed to its dividend policy of distributing roughly half of its profit for the period as a dividend. The dividend to be proposed to the Supervisory Board in respect of the reporting period stands at €1.75 per share (2012/2013: €1.48). The proposed dividend was calculated on the basis of a profit of €104 million (€88 million) for the fiscal year.
Further details relating to fiscal 2013/2014 can be found in the more extensive document published today by Wincor Nixdorf AG as part of its annual press conference in Düsseldorf. The PDF file can be accessed at http://www.wincor-nixdorf.com (Investor Relations section > Reports & Financial Data).