Social. Environmental. Economic

Transcription

1 Social Environmental Economic Sustainability Report 2012/2013

2 Contents 2 Statement by the President & CEO Company Profile Sustainability Management 4 The Wincor Nixdorf Group 7 Solutions Portfolio 12 Corporate Governance 13 Statements of Mission or Values, Codes of Conduct, and Principles 15 Development of Sustainability Structures 18 Sustainability Integrated into the Management System 18 New Sustainability Targets Agreed 20 Involving our Stakeholders 21 Report Parameters

3 Contents 1 Economic Aspects Environmental Aspects Social Aspects 30 Economic Performance 37 Use of Materials 38 Reducing Energy Consumption and Avoiding Emissions 42 Water Consumption 43 Biodiversity 43 Emissions, Effluents, and Waste 46 Products and Production 48 Compliance Relating to the Environment 55 Forward-thinking and sustainable human resources policy 55 Staff Development 56 Initial and Ongoing Training 57 Labor practices and decent work 57 Employment: Total Workforce by Employment Type and Region 58 Labor/Management Relations 58 Work-related Social Benefits 59 Occupational Health and Safety 61 Diversity and Equal Opportunities 62 Working Hours 64 Human Rights 64 Human Rights Aspects for Wincor Nixdorf 64 Human Rights Aspects for Suppliers 66 Society 68 Compliance Relating to Social Responsibility 68 Product Responsibility 68 Management Approach 69 User Safety 69 Product and Service Labeling 70 Marketing Communications 70 Customer Privacy 71 Compliance Relating to Product Responsibility 74 GRI Index 82 Glossary

4 2 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Statement by the President & CEO At Wincor Nixdorf, we believe that the long-term success of our company depends crucially on maintaining a sustainable and responsible approach to business. We have made strenuous efforts in this field for some time and continue to make an important contribution. Sustainability is about protecting the environment and making careful use of natural resources. It is also about the company's social responsibilities, fostering staff development and a commitment to fair competition and equitable contractual practices with business partners. In accordance with our long-term sustainability strategy, our focus during the year under review was on completing work on our international sustainability structures. We also integrated corresponding guidelines, process instructions, and work instructions into our management system. Additionally, we launched the second phase of our sustainability concept by establishing an ongoing sustainability dialog, introducing sustainability training and adopting our first sustainability targets. The measures initiated in fiscal 2011/2012 to develop global sustainability structures are therefore now largely complete. Furthermore, the rules and instructions derived from our sustainability criteria were integrated into the management system. This guarantees the implementation of the relevant and necessary procedures across all levels of the company and all its processes. Measures to foster the sustainability dialog in fiscal 2013/2014 were primarily intended to raise awareness among all employees. We also drew up and began to implement a training program for the designated specialists. As part of our efforts to drive continuous improvement, concrete environmental, economic, and social sustainability targets were adopted for the first time along with relevant practical measures. Work on the implementation of these targets will commence in fiscal 2013/2014. In this context, our third Sustainability Report covering the period from October 1, 2012, to September 30, 2013, provides a record of our successful endeavors and our objectives in this vital area. Eckard Heidloff President and Chief Executive Officer, Wincor Nixdorf AG

5 GRI Index Glossary 3

6 4 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Company Profile The Wincor Nixdorf Group. Organizational Structure. Wincor Nixdorf came into existence in 1999, when it was carved out from the Siemens Group. It was subsequently floated in Today Wincor Nixdorf is a global enterprise, based in Germany. In fiscal 2012/13, net sales stood at 2,465 million and EBITA (earnings before interest, taxes, and amortization) at 132 million. Wincor Nixdorf is one of the world's leading providers of IT solutions and services to retail banks and the retail industry. We also apply the expertise we have gained from our core business to related industries such as postal services and service station networks. Wincor Nixdorf has established a presence in around 130 countries around the globe, giving it an outstanding profile when it comes to customer proximity. We have our own subsidiaries in 42 countries, and over half of our global workforce of some 9,000 people is employed outside Germany. We also place great importance on building close relationships with sales partners that have an excellent knowledge of the local requirements and conditions on the customer side. Europe, which we regard as our home market, accounts for over 70% of our total net sales. We have an international network of production facilities that includes a number of external partners. The Group's own production sites are located in Germany, China, and Brazil. Our research and development (R&D) activities are performed in Germany, Austria, Poland, Singapore, China, and Brazil. Here, too, we collaborate with a growing network of external partners and research institutes. Managerial Control through Four-Member Board of Directors. Wincor Nixdorf Aktiengesellschaft ( hereinafter referred to as Wincor Nixdorf AG ) is managed by a Board of Directors comprising four members: the Chairman Eckard Heidloff (President & Chief Executive Officer) and the Deputy Chairman Dr. Jürgen Wunram, as well as the board members Jens Bohlen and Olaf Heyden. To ensure that the company's operating activities are managed effectively, the Board of Directors is supported by an extended management team whose members are in close contact with the Board of Directors. The Board of Directors is responsible for managing the stock corporation. It ensures that business is conducted in accordance with legal requirements, the German Corporate Governance Code, Wincor Nixdorf AG's Articles of Association, and the Rules of Procedure of the Board of Directors. The decisions and actions of the Board of Directors reflect the interests and goals of the company as a whole. Wincor Nixdorf AG's goals and the strategy for achieving them are established by the Board of Directors in consultation with the Supervisory Board. In order to implement this strategy, the Board of Directors makes effective and efficient use of the management tools available to it. Wincor Nixdorf's core aims include enhancing the competitiveness of the company and its customers and achieving sustained growth in enterprise value. The Group's planning, control, and risk management systems are given a high priority. The Board of Directors and the Supervisory Board work closely together in the best interests of the company. Reflecting this cooperative approach, the Board of Directors informs the Supervisory Board regularly, promptly, and in a detailed manner on all key issues related to planning, business trends, and the current risk situation. Any departures from agreed plans and targets are reported immediately to the Supervisory Board. The Board of Directors and the Supervisory Board also maintain frequent contact on all relevant issues outside their regular meetings.

7 GRI Index Glossary 5 Board of Directors Supported by Twelve-member Supervisory Board. The Supervisory Board monitors the work of the Board of Directors in accordance with statutory provisions, the German Corporate Governance Code, the Articles of Association of Wincor Nixdorf AG, the Rules of Procedure for the Supervisory Board, and any resolutions adopted by the Supervisory Board itself. In accordance with the Codetermination Act (1976), the Supervisory Board of Wincor Nixdorf AG is made up of twelve members, six of whom represent the shareholders and six the employees. Business Model. Business Process Innovations through Intelligent IT Solutions. With its hardware, software, and services, Wincor Nixdorf provides retail banks and retailers with reliable information technology (IT) to support efficiency improvements with regard to its business processes, particularly those that interface with the consumer. In this context, IT is no longer regarded simply as a means of ensuring cost efficiency but increasingly as a driving force for competitive growth, setting the pace for change within enterprises. As such, IT has established itself as a key element of our customers' strategic planning and operational business. In parallel, we have built up a stake in the international growth of banks and retailers through our on-site support for the development of local providers in emerging economies as well as for the expansion of global business groups into these regions. Wincor Nixdorf tailors its services to meet the needs of its customers, with a portfolio divided into three core areas: Wincor Nixdorf as Technology Manufacturer. Focusing on cash and checkout systems, in particular, we provide our customers with state-of-the-art IT hardware and software products as well as services that meet the very highest standards of quality. The services are standardized and provided on an individual project basis. Wincor Nixdorf as Global Solution Provider. We develop and configure packaged as well as tailored software and hardware solutions for our customers and implement them in their international branches and networks. We also support our customers with standardized IT services that deliver the same high level of quality whatever the location. Wincor Nixdorf as Business Transformation Partner. As a strategic partner, we are closely involved with our customers activities and processes and so can play a proactive role in shaping the transformation of their technology using our IT expertise. Our twin focal points here are productivity and enhancing the end customer experience. Our software expertise and Professional Services play a pivotal role in this context. This type of partnership is a long-term one, resulting in maximum performance and the closest levels of trusted collaboration. Markets and Competitive Positioning. Innovative high-end systems that underpin IT solutions for improving business processes are pivotal to the business strategy for our hardware activities. These solutions have earned us a reputation as a driver of innovation in our markets. In the global hardware market, we have established ourselves as one of the leading suppliers of cash and EPOS systems (Electronic Point-of-Sale Systems) measured in each case by the number of systems shipped. In the year under review, we initiated an expansion campaign to achieve such a leading position in the areas of Software and Professional Services as well.

8 6 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Control. Strategic Planning as the Basis for Operational Management. The Group's management and control processes are based on annual strategic plans that are adjusted as required. This strategic plan also incorporates our long-term investment focus. It serves to define medium-term objectives for the Banking and Retail segments. Additionally, the objectives for the Group s various units and functions are derived from this strategic plan. Strategic considerations feed into a multi-year plan that is used to establish our budget targets. These are applied to operational planning for the various units and are linked to corresponding objectives and measures at an operational level. Risk and opportunity management plays a key role in operational planning and decision-making. Based on our latest results and current developments, we produce monthly forecasts. By comparing the data, we are able to identify any deviations from agreed targets at an early stage and take prompt measures to ensure those targets are still met. An integrated IT system is used for planning, control, and reporting processes. It is monitored regularly and adapted as required to meet new demands. This ensures that it remains up to date and effective. The parameters used to determine the performance of our operating segments, regions, and sales entities are based on net sales and profit, the operating margin, and cash flow. Other Group control indicators include gross profits and margins, selling, general and administration expenses, and working capital. Similarly, we link various activities as closely as possible to relevant control parameters in the course of day-today operational business. In addition to the above indicators, which relate directly to our operating activities, we draw on other data such as net finance costs/income and the Group's effective tax rate when making management decisions. Wider Performance Measured by Non-financial Indicators. In addition to those indicators that specifically measure commercial success and the efficient use of resources, we also compile data on quality, supplier reliability, and stock turn. These can be used, for example, to evaluate and optimize our global production network. They help us to improve quality and achieve productivity gains, as well as generating economies of scale and reducing our costs. Managing Success with the Help of Tried-and-Tested Financial Indicators. The Group s operating and nonoperating business activities are both controlled using a series of carefully chosen financial and non-financial indicators that feed into a central indicator control system at Group level. Below Group level, we measure our performance in terms of the Banking and Retail segments, the different regions, our sales entities and investees, as well as our Hardware and Software/Services business streams. Production, Development, and Central Administration are also integrated into our indicator-based monitoring system.

9 GRI Index Glossary 7 Solutions Portfolio. Retail Banking. 1. Hardware for Self-service and Automation. Ultimately, banks want their branch staff to be able to concentrate on advising customers. With this in mind, they are relieving employees from routine tasks, migrating processes to self-service, and automating many standard processes in their branches. Wincor Nixdorf supports these efforts principally by providing self-service systems for cash deposits and disbursement but also by facilitating automated, staff-operated cash and cashless transactions at the counters. As well as ATMs, our portfolio includes cash recycling systems that subject deposited banknotes to a counterfeit check before once again making them available for disbursement. What sets Wincor Nixdorf systems apart from the rest is their ability to offer banks the maximum possible flexibility throughout the entire life cycle. A unique feature of the CINEO product family is that banknote storage cassettes can be exchanged between all the systems, enabling cash cycles to be optimized both within and between branches. In many emerging markets, banks are significantly expanding their ATM networks, ensuring that their customers have access to cash via the self-service channel. For this reason, we have rounded out our offering of ProCash ATMs, which benefit from a robust and compact construction. Potential customers for these systems other than banks are companies that install and operate ATMs at third-party locations, such as supermarkets. We also offer components for our systems that enhance their functionality footprint, the aim being to migrate a range of further, cashless processes to selfservice. Examples include the automated processing of checks and the payment of invoices. To streamline cash deposits and disbursement at the counter, we also offer automated teller safes. Additionally, we supply cash transfer terminals and statement printers. 2. Software and Professional Services. Our portfolio of software is designed to help banks automate both branch and self-service processes in a customerfocused way as well as to enable more efficient and secure transactions. Wincor Nixdorf s system-related software offering is divided into three areas: The first is multivendor software, a suite of applications supporting the operation of ATMs from different providers. With this software, banks that operate ATMs from different vendors within their networks need to use only one platform, and new functionality can be integrated quickly with just a one-off spend. The second is software applications for remote monitoring, which provide banks with detailed reports on the status of their self-service systems. The information supplied forms the basis for efficiently managing the systems. The third area comprises software solutions for protecting multivendor self-service systems from unauthorized access and manipulation. As well as the system-related software, we have a range of modules within the Retail Banking Solution Suite (PC/E) that enable the integration of individual sales channels. By leveraging this powerful software, banks can pave the way to streamlined processes, standardized IT infrastructures, and cross-channel marketing. Also growing in importance are smartphone applications that banks can use to manage their self-service networks or that consumers can use to withdraw money from ATMs. Another component of our Retail Banking Solution Suite supports the processing of cashless transactions. Our Professional Services offer customers the option of having the hardware or software implemented as a turnkey solution. Professional Services also support the smooth, ongoing operation of the software. Furthermore, thanks to our international network of Professional Services specialists, we can offer customers both consulting services and customized project solutions for process automation. The portfolio ranges from business consulting to process and IT consulting.

10 8 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects 3. IT Services for Retail Banks. As a manufacturer of IT systems, we offer services across their entire life cycle, thereby ensuring maximum technical availability and efficient IT operations. Our offering, which also encompasses software operation, is based on globally standardized service processes and quality criteria. Product-based Services. In the first step of a rollout, we focus on preparing and installing the IT systems. To ensure technical availability, any faults are rectified either on site by specialists or via remote maintenance. Preventive maintenance keeps the risk of disruption to a minimum. In addition, Wincor Nixdorf supports banks with the planning, design, and implementation activities involved in modernizing their branches and self-service areas. Outsourcing/Managed Services. By automating and optimizing IT and self-service operation, we can increase the availability of entire networks for our customers. Network monitoring is the basis of these services, as it enables the management of the self-service systems or the entire branch IT. Underlying this is the eservices Platform, which can monitor and manage the connected systems remotely and also distribute the software. With its outsourcing service, Wincor Nixdorf can manage the entire self-service network for its banking customers as well as all their IT applications and infrastructures, whether they involve data centers, servers, or workstations. 4. Integrated Solutions. Cash Management. Our modular cash management portfolio Cash Cycle Management Solutions enables banks to automate virtually all of their cash processes. The offering encompasses consulting (e.g., for process analysis), hardware, software, and services. Using a dedicated software package, we determine ideal cash stock and filling and emptying intervals by cash-in-transit companies, as well as offering the service of complete process control for cash management. Overall, closed cash cycles significantly bolster the efficiency of cash handling for banking customers, improve security, and increase the transparency of cash stocks and requirements. This translates into a significant cost reduction. Cashless Transactions. Wincor Nixdorf s solutions for cashless transactions support retail banks, payment service providers, and retailers alike with the processing of card and cardless transactions via ATMs, EFTPOS systems, mobile devices, the Internet, and other channels, using a standardized platform concept. Our offering encompasses hardware, software, and services. Alongside hardware such as a design-focused transactions terminal with touchscreen functionality, we offer payment software and other software applications based on Open Source technology. We can also provide routing and switching services. Switching is the term used to describe the processing of noncash transactions that generally involve the merchant, banks, and the cardholder. Additional value-added services are available to support the seamless implementation of new payment channels and new functions, as well as to help customers meet the requirements of growth areas such as money transfer solutions in emerging markets (mobile money transfer) and innovative mpos concepts and solutions (mobile point of sale). In contrast to stationary point-of-sale systems, mpos solutions are capable of offering checkout functionality on mobile devices such as Tablet PCs.

11 GRI Index Glossary 9 Solutions for Branches. With products and services designed to increase process efficiency, create a better customer experience, and improve customer retention, we help retail banks to navigate change in the costintensive branch sales channel. We develop concepts for branches and self-service by considering processes across every channel. Our consulting service involves defining individual branch requirements with regard to self-service solutions and IT. Security for Banks. We offer a comprehensive range of security services to counter the extremely varied and ever more resourceful attempts to breach banking systems. We protect the self-service channel from physical breaches such as skimming and cash trapping. We also safeguard banking systems against the increasing number of virtual attacks in the form of viruses and trojans. Our security solutions are becoming more and more intelligent. To provide active protection, we offer software that intelligently combines information from multiple branch systems such as access control systems and self-service systems to pinpoint potential attack scenarios and enable an active response. We also offer our customers a service that links their bank branches to our own security center for monitoring purposes. Retail. 1. Hardware for Checkout, Self-service, and Automation. For retail branches, we offer solutions comprising hardware, software, and services that target the overall shopping experience of customers while they are in the store. Our solutions can be combined with each other and seamlessly integrated in the administration processes of the respective retailer. In support of the conventional checkout process, we are continuously developing our BEETLE checkout system. BEETLE is our proven technology platform offering reliable and future-proof checkout technology. The checkout system is developed for long-term use and helps our customers to optimize sales processes and reduce operating costs. In the fiscal year under review, we evolved the maintainability, energy consumption, and total cost of ownership of our systems another step by avoiding the use of moving parts and systematically reducing their ecological footprint. Wincor Nixdorf supports the automation of the checkout process by means of a modular hardware portfolio that comprises self-service checkouts and scan-andpay terminals. By configuring the individual modules in various ways, we can support the specific requirements of different retail formats, such as grocery stores and self-service department stores. We have recently developed a BEETLE checkout solution that can be flexibly operated as a self-checkout or an attended checkout as required, without any of the system modifications that are otherwise usually necessary. To optimize cash management for retailers, we create closed cash cycles in the checkout area and in the cash office and link them to each other. In the checkout area, the banknotes and coins received are placed in a recycling system, which allows the cash to be made available again for giving change. The cash is emptied from the checkout using closed, secure storage units, which are taken to the cash office. There, the standard cassettes containing cash are emptied into automated teller safes and systems for automatic coin processing. This level of automation frees employees from routine tasks, since the cash no longer needs to be counted, checked, and transferred by hand. With all payment transactions being logged in detail in the system, retail-

12 10 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects ers benefit at all times from complete transparency of cash stocks and the knowledge that the required cash is available in the checkout area. Furthermore, the closed cash cycle allows revenue generated by stores to be credited to accounts more quickly. Stand-alone process automation in the cash office is also possible, independently of the fully automated cash process from checkout area to cash office. Our ultra-modern reverse vending machines also help to automate processes. The reverse vending systems we have developed have been designed to conserve resources and consume less electricity. Using the latest procedures, disposable containers are compacted and introduced back into the material cycle. Reusable containers are sorted and also fed into the cycle. By compacting the packaging on site, we can significantly reduce its volume. 2. Software and Professional Services. Nowadays, customers can choose from a range of ways to shop. With its TP Application Suite for retailers, Wincor Nixdorf offers a software platform whose individual modules support a wide range of sales channels and processes. At branch level, the components of the TP Application Suite control all the relevant processes at the different customer interfaces at conventional checkouts, in various self-checkout scenarios, in cash automation, when using mobile solutions for employees and customers, and in the integration of e-commerce solutions. At corporate headquarters, the software can be used to manage, monitor, and control the processes and the IT at the respective branches virtually in real time as well as perform remote maintenance tasks. It also provides an option for initiating business analyses across all retail branches. Crucially, this software allows the seamless integration of branch solutions with ERP components deployed by the retailer. Similar to our portfolio for banks, our Professional Services, which include process analysis, integration and customizing services, training, and maintenance, are available to retail customers wishing to create and implement customized project solutions. 3. IT Services for Retailers. As in the case of our IT services for banks, our internationally standardized IT services for retailers ensure best-in-class technical availability and efficient operation of POS systems, and protect customer investments in the long term. Retailers with international operations benefit from globally valid outline agreements that contain clearly defined services. This ensures that the same services and identical level of service quality are received whatever the location. Product-based Services. In rollouts, Wincor Nixdorf takes on the task of preparing and installing the IT systems. These services can apply to individual systems or to full overhauls of retail outlets. To ensure technical availability during ongoing operations, any faults are rectified by remote maintenance or on-site repair with the aim of restoring the systems as fast as possible. Outsourcing/Managed Services. The availability of IT systems can be further increased by means of a monitoring service for the entire network plus a customer-specific service desk that can handle all hardware- and software-related questions. Wincor Nixdorf assumes responsibility for the operation of all IT systems at the branch and uses the eservices Platform to manage the full range of processes there, such as software distribution. We can also manage the EFT network of our retail customers from the checkout terminal to backend systems, thereby ensuring the secure processing of cashless transactions involving debit cards, credit cards, vouchers, or bonus cards.

13 GRI Index Glossary Integrated Solutions. Cash automation has the potential to deliver enormous savings, which can positively impact larger retail operations in particular in a short space of time. One focus of our solutions is the automation of cash processes in the cash office. The portfolio encompasses consulting (e.g., for process analysis), hardware, software, and services. A further focal point is cash automation in the checkout area, where self-checkout terminals with scan-andpay functions or conventional payment terminals are in place. Another solution is the implementation of a closed cash cycle at the POS in service stations or convenience stores, particularly as the security requirements of these locations are very high. Wincor Nixdorf offers a uniform solution architecture for a range of scenarios and the option of gradually implementing cash automation from the cash office to the checkout, so that ultimately the retailer benefits from a fully closed process. Finally, we provide services that ensure the best possible availability of systems, as well as being in a position to assume responsibility for managing the entire cash supply and removal cycle. Cashless Transactions. DThe cashless transactions completed at the checkout in retail branches include traditional card payments, use of customer and fleet cards, and the redemption of coupons. It is also anticipated that mobile payments at checkouts will become more common in future. Wincor Nixdorf supports these transactions using integrated checkout solutions for retailers and service stations. We also provide a comprehensive services and solutions platform. This brings together all the cashless transactions completed at the checkout and forwards them to the relevant service providers credit card companies, customer loyalty companies, coupon service providers, and so on for processing. Our Solutions Portfolio for Other Applications. Our expertise also comes to the fore in other industries with a similar structure to that of banks and retailers. We help postal operators to restructure their branch networks by supplying tailored automation solutions for different types of branches to manage their counter and self-service operations. Our dedicated Service Station Suite (NAMOS Application Suite) allows companies operating in this sector to control and monitor all their processes from the fuel pump and checkout to the back and head office regardless of operator model and size of service station. Our innovative solutions support customer retention and business process improvement at both service stations and headquarters. Particularly attractive to multinational operators of service station networks are our globally standardized services, which can be delivered in the countries of their choice.

14 12 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Corporate Governance At Wincor Nixdorf, responsible, transparent business management and control centered on the creation of sustained added value are considered an essential basis for commercial success. Indeed, corporate governance has been an integral element of management for many years. The Board of Directors and the Supervisory Board have issued the statutory statement of compliance in accordance with Section 161 of the German Stock Corporation Act (Aktiengesetz AktG), stating that, with the exceptions specified therein, Wincor Nixdorf complies with the recommendations of the German Corporate Governance Code. Adherence to this Code is monitored by the Board of Directors and the Supervisory Board. Issued annually, the statement of compliance is permanently available to all shareholders on the Internet at under the heading of Investor Relations. Internal and External Transparency. Wincor Nixdorf is committed to providing comprehensive, continuous, and prompt information in its communications with the company s shareholders. With a view to ensuring prompt and open communication with the public, we provide detailed documents and information on our website. This includes AGM information, financial reports, current ad hoc announcements, and press releases. Our online content also includes the company's Articles of Association, the Code of Conduct, and information on Directors' Dealings pursuant to Section 15a WpHG (German Securities Trading Act). Compliance. For Wincor Nixdorf AG, responsible and lawful conduct is a prerequisite for quality, business success, and sustainable corporate development. The Board of Directors regards compliance as a fundamental management task and has pledged in its compliance statement to respect the law, while expressly acknowledging the need for lawful, social, and ethical conduct. Wincor Nixdorf has developed a Compliance Management System (WN CMS) tailored to the requirements of an international group. This involves expanding the existing compliance organization, in addition to comprising the process of further refining a compliance program. At Wincor Nixdorf, the overall compliance structure has two key elements. Firstly, compliance management is linked to our business activities so that it remains an ongoing and integral part of existing processes. Secondly, we have developed a Compliance Officer System. The Group-wide Compliance Officer System encompasses four levels. The first level is occupied by the Chief Compliance Officer (CCO), who was appointed as early as Assigned to the parent company, he reports to the Board of Directors and the Audit Committee of the Supervisory Board. The CCO is responsible for coordinating and managing the global implementation and monitoring of compliance measures and for ongoing development of the Wincor Nixdorf CMS. The second level is occupied by the Regional Compliance Officers (Regional COs), whose responsibilities include compliance at a regional level and who report to the COO. The third level includes the Area Compliance Officers (Area COs), who report to the Regional COs and coordinate the activities of the Local COs in their respective areas. Finally, the fourth level is occupied by Local Compliance Officers (Local COs) assigned to the respective entities within the various countries. They report to the Area COs and are responsible for introducing the Compliance Management System, implementing associated

15 GRI Index Glossary 13 measures, and monitoring progress at a local level. The Compliance Management System comprises the following components: prevention, detection/control, and response. As regards prevention, considerable importance is attached to regular compliance training, implemented in the form of attended seminars and online sessions. The communication program includes a quarterly compliance newsletter and the compliance portal on the Wincor Nixdorf intranet. Additionally, the Compliance Office is available to advise employees on all matters relating to the Wincor Nixdorf CMS. The Wincor Nixdorf CMS is subject to an ongoing process of development to ensure that Wincor Nixdorf can respond to changes in the legal and economic conditions governing its international business. Risk Management System for Value-led Corporate Management. Responsible corporate governance is dependent on a properly functioning risk management system. The risk management system implemented by Wincor Nixdorf is geared toward meeting the practical requirements of our business. It is designed to highlight opportunities and risks at an early stage and to help avoid or limit them where they occur. Further details are provided in the Group Management Report in the section entitled Risk Report. Exceptions to the Corporate Governance Code. Under Section 161 of the German Stock Corporation Act (Aktiengesetz AktG), the Board of Directors and the Supervisory Board of exchange-listed companies are obliged to issue a declaration each year stating that the recommendations of the Code of the Government Commission on German Corporate Governance, as published by the German Federal Ministry of Justice in the official section of the Federal Gazette (electronic version), have been and are being met. This declaration must also specify which recommendations have not been or are not being applied and outline the reasons. In accordance with Section 161 AktG (German Stock Corporation Act), the Board of Directors and the Supervisory Board of Wincor Nixdorf AG issued a new declaration of compliance on November 25, Statements of Mission or Values, Codes of Conduct, and Principles. The fundamental rules, guidelines, and both procedural and occupational instructions applicable throughout the Wincor Nixdorf Group are documented in our CoRe Guide (Corporate Regulations Guide). In this context, particular emphasis is placed on the Code of Conduct and the Supplier Code of Conduct. Code of Conduct. Wincor Nixdorf s goal is to manufacture and offer best-in-class products and solutions in its Hardware, Software, and Services segments for the banking and retail industries. In doing so, the company aims to achieve a sustainable increase in its own enterprise value in the interests of both its workforce and its shareholders. The framework within which the company operates in pursuit of these goals is laid out in the Code of Conduct. It prescribes the values and standards of conduct to be maintained by Wincor Nixdorf employees in their dealings with others outside the Group, in particular customers, shareholders, business partners, and official bodies; It also provides rules that govern the relations between employees within the Group and between employees and the company. These rules of conduct are based on nationally and internationally recognized legal and ethical principles. The Code of Conduct represents a standard that is binding upon all Wincor Nixdorf employees. The Code applies equally and in all respects to all employees of Wincor Nixdorf, whatever their position within the Group. The Code of Conduct forms the basis for all regulations and guidelines at Wincor Nixdorf that are more specific or detailed in nature. Where more detailed provisions are in place at individual Group companies, they take precedence over the general Code of Conduct. The Code of Conduct must be applied in conjunction with the laws and legal systems of each country and in particular with existing legislation on employment and industrial relations. The rules of this Code of Conduct must be observed even in those cases where a national legal system or an internal regulation prescribes a lower standard. All employees are responsible for the implementation of the Code of Conduct. Senior management at Group and individual company level are responsible for creating an open and transparent environment in which managers and employees do not merely refrain from illegal or dubious actions but are also made aware of the kind of ethically and

16 14 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects morally questionable transactions they may encounter. Managerial staff are expected to guide the business and working practices of employees in line with this Code of Conduct. However, it is also the responsibility of each employee to implement the values contained in the Code and to take care that its legal and ethical standards are respected at his or her place of work. Alongside the appointment of a Chief Compliance Officer, whose role is to field information from employees or others outside the Group in relation to corruption or other criminal business conduct, Wincor Nixdorf has commissioned the services of an external ombudsman, to whom employees can pass information about breaches of the law or regulations in connection with the activities of the Group. This is a further clear signal of its focus on transparency and its determination to prevent corruption. Our suppliers are also expected to adhere to the Code of Conduct. Supplier Code of Conduct. As a company operating at a global level, Wincor Nixdorf has a responsibility to ensure that its own products and services are manufactured and marketed in a value chain that is consistent with international standards. To this end, in October 2007, Wincor Nixdorf introduced a Supplier Code of Conduct laying out a series of binding rules for suppliers in relation to their community, social, and environmental obligations. In this context, our aim is to ensure that we only work with suppliers who meet our strict requirements. Nixdorf Supplier Compliance Process helps to ensure at a global level that our existing suppliers also conform with the standards defined by the Supplier Code of Conduct in respect of business ethics, health and safety, the environment, and working conditions. In this case, we determine according to the level of risk (e.g., on the basis of the Transparency International Corruption Index) the scope in which a supplier shall be obligated to comply with our Supplier Code of Conduct or equivalent regulations. Wincor Nixdorf has established cross-divisional processes for the purpose of evaluating the approach taken by suppliers with regard to social and environmental issues. Regular audits are carried out on a sample basis to monitor compliance. If necessary, we reach agreement with the supplier on improvement measures. If we find that our standards are not being met, the termination of the business with the supplier is the ultimate consequence. Wincor Nixdorf operates at all times within the law, and we plan to incorporate other charters and principles into our business processes in the future. It is also represented on a number of select bodies (e.g., chambers of industry and commerce) that exist to support our customers and our business. Therefore, compliance with the Wincor Nixdorf Supplier Code of Conduct is an essential prerequisite for any business relationship formed between Wincor Nixdorf and its suppliers. In order to ensure compliance, the Supplier Code of Conduct or regulations that are at the very least comparable to the Code must be reflected at a contractual level in all existing and future business relationships with suppliers. As from fiscal 2008/2009, all new purchasing agreements include a contractual clause under which suppliers are obliged to comply with our Supplier Code of Conduct. Introduced in August 2010, the Wincor

17 GRI Index Glossary 15 Sustainability Management A sustainable approach to business is essential for the future success of our company. This applies throughout the organization: for us, sustainability is about the company's social responsibilities and fostering staff development, as well as making sparing use of natural resources. In addition, we design information technology that has a minimal impact on the environment, while using resources with maximum efficiency. Reflecting the great importance we attach to sustainability, we have set out our fundamental approach in the form of a management commitment. This is an unreserved commitment by the company to pursue and maintain a sustainable business model and to further expand the sustainability system within the Group. This formal commitment was adopted and disseminated throughout the Group in fiscal 2011/2012. Development of Sustainability Structures. Systematically integrating sustainability into business practices requires appropriate structures to be put in place. To this end, over the course of fiscal 2012/2013, Wincor Nixdorf implanted the issue of sustainability even more firmly into the Group's organizational mechanisms. The measures initiated in fiscal 2011/12 to develop global sustainability structures are now largely complete. Three central Competence Centers were established at Group level with remits for environment and occupational safety as well as health and social issues. Their role as the new structure's main control bodies is to make ongoing improvements in the way we address these issues. The heads of the competence centers work closely with an overall steering board representing the Board of Directors, other core areas of the business, the production side, and our field service organization. The steering board defines the general strategic sustainability guidelines and the corresponding targets for the Group. Wincor Nixdorf Sustainability Board Responsible for strategic direction Management Commitment Strategic Central Competence Center Responsible for functional direction Guiding Principles environmental social economic Regional Officers Responsible for operational coordination Document Flow Policies Process Instructions Regional Specialist Level Responsible for operational execution Job Instructions Operational

18 16 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects» The Board of Directors of Wincor Nixdorf AG is committed to an economically, ecologically and socially sustainable business. We believe sustainability and responsible corporate and environmental management are fundamental to the long-term survival of our business. Guided by this philosophy, Wincor Nixdorf has long been active in this area and has made an important contribution partly for sound economic reasons, but in particular out of a strong sense of responsibility. We are committed to achieving a healthy balance with regard to our economic, ecological, and social impact. Taking and Showing Responsibility. This philosophy is expressed through our business culture, which is based on trust, transparency, reliability, and fairness in our dealings with customers, shareholders, business partners, staff, and the public. The Sustainability System at Wincor Nixdorf is being continuously developed and is designed as a living process that evolves over time and is backed by a strong corporate and management culture.«

19 GRI Index Glossary 17

20 18 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Officers with specific responsibility for occupational safety, the environment and health and social issues have been appointed and trained for all the nineteen areas that reflect the structure of our Group s worldwide activities, and for our production sites worldwide. Their task is to supervise and manage sustainability issues at local level. Key functions include: Proactive promotion of the sustainability management system Preparation of an annual status report Advising and training employees Calculation of local key performance figures for the Sustainability Report At operational level a new specialist level was defined and established with functions standardized throughout the Group. Nearly all these positions have now been filled. Accordingly, it is now mandatory for fire marshals, first aiders, evacuation assistants, environmental officers, and safety officers to be appointed at all locations. Sustainability Integrated into the Management System. During the year under review, the rules, instructions, and processes derived from our sustainability criteria were integrated into the management system in the form of guidelines, process instructions, and work instructions. At the same time, they became a firmly established component of Wincor Nixdorf's global business processes. This guarantees the implementation of the relevant and necessary procedures across all levels of the company and all its processes. Dialog Launched at All Levels. Following the successful implementation of the sustainability system, we launched the next phase of the sustainability initiative. Here the main focus is on fostering the sustainability dialog to boost awareness among all employees and on providing training for the designated specialists. With this in mind, a training strategy was developed in the period under review, the implementation of which is already under way. Staff suggestion scheme. Our in-house staff suggestion scheme was redesigned and given renewed impetus, especially in the field of sustainability. It is our conviction that sustainable action not only calls for binding rules but also innovative ideas. During the reporting period, over 1,600 suggestions of economic, environmental, or social benefit were submitted, which represents an increase of 25 percent over the previous year. Furthermore, we saw an increase in the overall level of participation by our employees in this staff suggestion scheme in comparison with the last fiscal year. It is clear that the improvements we have achieved thanks to this realignment of our staff suggestions scheme are not merely a passing trend linked to one-off campaigns but are now firmly established within the company. New Sustainability Targets Agreed. In line with our commitment to continuous improvement, during the year under review we adopted our first concrete environmental and social sustainability targets, along with a corresponding series of practical measures, to match those targets already in place relating to economic sustainability. Work on the implementation of these targets will commence in the coming fiscal year. In future, these agreed targets will allow us to regularly evaluate the success of our measures and to highlight our achievements more clearly. We shall continue to report on our progress in our annual Sustainability Report.