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.

21 GRI Index Glossary 19

22 20 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Involving our Stakeholders. Wincor Nixdorf considers sustainability management to be a process of continuous improvement. We believe the best way to define our sustainability targets is through an ongoing dialog with our stakeholders. The aim of this dialog is to determine what people expect of us as a global IT business, and what we must expect of ourselves, in order to achieve sustained success. It is against this backdrop that we have documented in this report our commitments with regard to sustainability. The report is also part of our continuous improvement process. It outlines the economic, environmental, and social impacts of our business activities in the fiscal year, in addition to documenting our accomplishments in these areas. The Sustainability Report ensures transparency and encourages us to improve even further. After all, by publishing this report, we are also allowing others to measure us against our own sustainability targets. As part of its business activities, Wincor Nixdorf exchanges views and ideas with a range of stakeholders: Customers Suppliers Sales partners Social organizations Communities Management Employees Shareholders Research bodies The following sections provide a brief outline of our interaction with some of these stakeholders: Customers. One of Wincor Nixdorf's strengths lies in its close relations with customers. One of the ways in which we foster this contact is through user groups, whose aim is to actively involve customers in the business and encourage them to exchange ideas and tell us what they need. Another element of this dialog is the Wincor World trade show, organized by Wincor Nixdorf. Staged every year, it attracts more than 7,000 trade visitors from around ninety countries, and approximately 100 international journalists. Decisionmakers working in the banking and retail industries use this international event as a platform for the exchange of news and ideas. What is more, Wincor World provides them with an opportunity to learn about the latest IT solutions and services from Wincor Nixdorf. Research Bodies. Wincor Nixdorf collaborates continuously with a wide range of universities and research bodies to promote the development of pioneering ideas and solutions, investigate complex areas, and identify general trends in new technology. In establishing a Research Management unit, Wincor Nixdorf has introduced a body whose objective is to create knowledge networks encompassing universities and research institutes. This is achieved mainly via collaborative and sponsored projects and through an active exchange of knowledge. Suppliers. Wincor Nixdorf s suppliers are closely integrated into its business processes - not only at the procurement stage but also as part of the development, manufacture, and improvement of components and products. In addition to maintaining a close dialog with this group in the context of day-to-day operations, we organize a dedicated Supplier s Day as part of our annual Wincor World trade show.

23 GRI Index Glossary 21 Sales Partners. Wincor Nixdorf s global presence is attributable not only to the 42 subsidiaries currently operating within the Group but also to its sales partners around the world. Every year, we hold a Partners' Day as part of the Wincor World trade show to present and discuss our portfolio, opportunities, risks, methods, and modes of collaboration. We have also laid the foundation for a global partner program (for more details see below under Expansion and Strengthening of Business with Sales Partners in the section entitled Restructuring and Realignment ). Shareholders. As an exchange-listed company, we are aware of the important role played by investors. We ensure that this group receives, in good time, the full information that is of relevance to its activities. Alongside the dialog maintained via our Investor Relations department as part of day-to-day business, we organize frequent events such as road shows that give our Board of Directors a chance to speak directly to investors. Employees. Information is channeled to employees using a variety of methods, e.g., through line managers, at events such as meetings of the Works Council, via the Internet, and through regular issues of our in-house magazine CommIT, which is complemented by special editions where required or by electronic newsletters published on our intranet. Report Parameters. Our third annual Sustainability Report covering fiscal 2012/2013 is intended to complement our other key publications, in particular the annual report. It provides an account of the steps we have taken in this area as an economically successful, environmentally aware, and socially responsible company. It assesses the economic, environmental, and social impact of our business activities and highlights what we have achieved already, what further action we plan to take, and what targets we have set ourselves. The information provided in the Sustainability Report covers the entire Wincor Nixdorf Group with each of its business segments, including all production sites and sales companies. The reporting period is the same as our fiscal year, from October 1 to September 30 in the following year. Any information not attributable to this period is specified as such. All the fully consolidated companies that make up the Group are covered by the report, and again any divergences in the sourcing of the data are highlighted. Minority holdings are not included in the Sustainability Report. The Sustainability Report is published annually in both German and English and can also be found on our website. The aim is to maintain a yearly reporting cycle. The first report was published in December GRI Level. Our sustainability report has been drawn up in line with the internationally recognized guidelines on sustainability reporting (G3.1) of the Global Reporting Initiative (GRI). The GRI was formed in 1997 in partnership with the United Nations Environment Program to act as an international standard for sustainability reports. It produced its first guidelines in We have continually enhanced our reporting in recent years, including the important area of sustainability. This year, we have again focused on the principles of materiality and stakeholder inclusiveness. Together with the principles of completeness and sustainability context, the GRI sees them as crucial for the definition and delineation of reporting content.

24 22 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Materiality Matrix Importance to Stakeholders Important Very Important Importance to Wincor Nixdorf Very Important Important Careful use of resources Attractive employer Professional development and support for employees Supplier relations management Social commitment Customer satisfaction Profit Compliance Data protection Employment conditions Health and safety at work The GRI guidelines reflect the key issues and challenges for our company in the area of sustainable development and take full account of the requirements of individual stakeholder groups. A materiality assessment is conducted in order to prioritize the areas we regard as particularly important. This involved reviewing both the internal and external requirements and expectations to which we need to respond in the field of sustainability. Materiality Matrix. The materiality matrix highlights our priorities in the area of sustainability and is the result of a detailed materiality analysis. The main aspects of sustainability requiring action are shown in Fig. 1 Materiality Matrix. They are assessed against the following criteria: importance to the company; importance to our stakeholders. The main priorities are those in the top right of the matrix. Reporting Process and Quality Assurance. External feedback is important to us even during the editorial process while the report is being drawn up. In this context, we engage outside auditors to offer a critical analysis and provide an external statement. These are based on a system and data quality review carried out by the German management system auditor DQS GmbH. The auditors found no reason to suggest that the information contained in the Sustainability Report might be incorrect or without foundation. In addition, we carry out exhaustive benchmarking. We review our targets, measures, and priorities, thus establishing qualitative waymarkers for the next report. Disclaimer. We have exercised extreme care in the compilation of the data in this report. However, we cannot entirely exclude the possibility of error. Insofar as this report contains forward-looking statements, these are based on the data and forecasts available at the time of publication. Although such projections are drawn up with great care, a variety of factors that were unforeseeable at the time of publication may lead to deviations. The contents of the report were examined and released by the managerial staff responsible.

25 GRI Index Glossary 23 Data Collection. Given the Group s size and global presence, collecting data poses a major logistical challenge. In addition, our international subsidiaries are required to comply with local regulations governing the compilation and definition of their indicators. Any significant limitations in the information presented in the Report are highlighted. There are no company-wide standards covering some of the information published in the Sustainability Report. Moreover, the legislation adopted by different countries with regard to the type of data that may be collected varies considerably. Consequently, the data published by us may not be comparable with that published under the same or similar designations by other companies. The data published in the Sustainability Report is obtained from different internal reporting systems. In most cases, these are not the same as those used to provide financial information for the consolidated annual report. In particular, they may be subject to less rigorous internal documentation, data generation, and data checking requirements. This is also the case in respect of the IT systems being used and the general supervisory framework. Nevertheless, by drawing on the experience of previous years, we have made further improvements to the quality of data used in this Sustainability Report. For this reason, there may be minor differences compared with the data published in the last report. Wincor Nixdorf adopts a holistic approach to reporting. For some years, in response to trends, there have been attempts by companies to introduce non-financial indicators into their external reports, which at present consist largely of financial data. The aim is to produce an integrated annual report. We may change our internal guidelines on the inclusion of data in the Sustainability Report without prior announcement. As Wincor Nixdorf s fiscal year does not coincide with the calendar year, some of the figures in the last Sustainability Report relating to the calendar year 2012 were extrapolated or estimated. In this report, those figures have been replaced by the actual data for that period.

26 Behave with integrity at all times

27 Economic Aspects Wincor Nixdorf s primary objective is and remains that of achieving sustained growth in enterprise value. The criteria we use to measure whether we have achieved this goal are as follows: contented shareholders; profitability; innovative solutions consisting of hardware, software, and services; realized returns; and secure jobs.

28 26 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Economic Aspects Corporate Objective. Wincor Nixdorf s primary objective is that of achieving sustained growth in enterprise value. The criteria we use to measure whether we have achieved this goal are as follows: contented shareholders; profitability; innovative solutions consisting of hardware, software, and services; realized returns; and secure jobs. All our actions are geared towards achieving profitable growth at Group level along with increases in net sales and profits that exceed the industry average as far as possible. Our business success depends crucially on the benefit our customers derive from our portfolio. We want to create sustainable added value for banks and retailers, and in doing so retain their business over the long term. Equally, by providing the full range of solutions and know-how our customers need from a single source, we can help to make the process of change less complex. Naturally, progression in this area also has benefits for Wincor Nixdorf. To this end, we continue to pool our strengths, offer new and competitive services, and expand our skills base in a systematic form. We believe firmly that businesses must be managed in accordance with the principles of sustainability. Strategy. Our endeavors as a company are directed towards a single overarching goal: we want Wincor Nixdorf to be the world's leading supplier of IT solutions and services centered on the branch and store operations of banks and retailers. This is the mission statement that determines our long-term strategy and strategic purpose. At the same time, it acts as a benchmark for all our business activities. To this end, we have identified four strategic goals. 1. Utilize Our Strength in Europe to Achieve Global Expansion. Europe is our key domestic market; to a large extent, it also provides the impetus for the development of the company as a whole. Europe gives us the strength to pursue global expansion. We therefore want to extend our leadership of the German market to the rest of Europe. We also aim to expand at the global level. In the medium term, we want to generate well over 30% of the Group's total net sales in emerging markets. In the Asia/Pacific/Africa region, our goal is visible expansion of our present market position, while our objective for the Americas is to achieve a significant improvement in that position. 2. Strengthen Our Market Position Through Innovation. The pioneering products and solutions we develop today are the foundation of our business success tomorrow. Thanks to our employees' expertise in the field of R&D and substantial investments directed at research and development, we are able to maintain our innovative edge and secure the productive capabilities of our business well into the future. At the same time, we remain committed to improving time-to-market without compromising on best-in-class quality and efficiency. 3. Expand Our Portfolio of Services. In response to the transformation seen in our target industries, our business success is increasingly being driven by our service portfolio. Accordingly, this is an area in which we aim to expand. Our services already guarantee high levels of availability for IT systems and help to maximize the efficiency of business processes. Beyond this, we support the efforts of our clients to manage the processes linked to strategic change within their sectors. We plan to build further on our expertise in this field. In this context, we intend to focus on softwarebased implementation services (Professional Services), Outsourcing, and Managed Services. 4. Apply Expertise to Similar Application Areas by Leveraging Synergies. We aim to continue growing not just at a regional level but also within other sectors that have a similar structure. Post office branches and service stations, for example, have similar requirements with regard to their IT infrastructures. Our challenge is to make greater use of this synergy and growth potential without losing sight of our core business fields of Banking and Retail.

29 GRI Index Glossary 27 Restructuring and Realignment. Restructuring Measures Completed. The Group restructuring program initiated in 2011 was completed on schedule in the fiscal year under review. It was followed up by a series of new realignment initiatives that we launched and began to implement in the course of the reporting year. This has allowed us to lay a stable foundation on which we can build and continually expand our competitive position in the global markets. During the first year of restructuring we were able to implement some important elements of our strategy: a stronger focus on the emerging markets and greater coordination of the portfolio with the ProCash product line. This includes measures already introduced to expand our development activities in Singapore for this specific group of countries. expansion of our sales team with a view to marketing our entire portfolio at a global level; reorganization of our international country structure in order to simplify management, support, and administrative functions; this was mainly achieved by combining countries into country groups (known as Areas ); restructuring of our global Services business with a view to standardizing our portfolio, pooling resources, and delivering services more efficiently. As outlined below, the last remaining elements of our restructuring program were implemented in the fiscal year under review. Reorganization of our Global Procurement, Production, and Supplier Network. In order to streamline our cost structures in the Hardware business and thus improve our competitive position in this market, we revised the way we divide up work between our own production network and external partners. This involved outsourcing more of our production activities to selected strategic suppliers, many of which are based in low-cost countries. At the same time, we now source more of our price-sensitive products from our factory in China. On balance, this represents a further shift in our value chain towards the Asia-Pacific region, where we expect to benefit from continued strong growth in the future. As part of our strategy to move some production to the factory in China and to external suppliers, the plant in Singapore was closed after thirty years of operation. The site had employed over 200 qualified and long-serving personnel. In consultation with the responsible bodies, Wincor Nixdorf made every effort to ensure that the impact of the redundancies on those concerned was minimized. Despite this step, Singapore remains an important location for the Group. Looking forward, as regional headquarters for the strategic Asia-Pacific growth regions and with an R&D facility that we are in the process of expanding, Singapore will in fact play an even more important role in the Group's future development. In April of this year, our employees in Singapore moved into a new building; a decision on the future use of the previous complex had not yet been taken at the end of the reporting year. Combining Resources in Research & Development. Previously, our research and development activities had been divided into separate retail banking and retail industry units. As part of our structural realignment, we have now combined these activities into a single unit. This new approach encompasses all the sectors relevant to Wincor Nixdorf. By drawing together the skills previously gained and applied separately, we aim to create a more standardized and modular portfolio. It will also help to exploit potential synergies with regard to know-how and R&D resources. Further Pooling of Resources and Expansion of Shared Services Centers. During the fiscal year under review, Wincor Nixdorf also continued to implement the principle of shared services as a means of standardizing identical processes performed at different locations and of pooling know-how and resources at a limited number of sites. The first major area in which we applied this principle was the global provision of IT services. Building on a coherent system of organizational structures and

30 28 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects processes that includes the Services units operating in individual countries as well as our headquarters in Paderborn, we set up a number of global service hubs. They work at a global level on the basis of coordinated and standardized processes. Another reason for adopting this principle of shared services is to provide effective support for the Group s administrative activities on the commercial side. In this area, we maintained our efforts to establish a series of Regional Administration Centers (RAC). Each of these will perform specific accounting, order processing, and service process tasks. This will help to ensure that those tasks are carried out rapidly and efficiently in line with uniform standards. Previously, responsibility for this work lay with different country-based units which applied a variety of methods. Operations commenced in the fiscal year under review at our RACs in Warsaw and Madrid, which cover Europe and Latin America respectively. The Warsaw RAC currently employs around 60 personnel. Our Asia RAC will be set up in Asia on the site of our Global Customer Care Center. Strategic Realignment Produces Leaner and Reorganized Personnel Structure. As a result of the Group's restructuring activities and its initial realignment measures, there was a further marked rebalancing of the personnel structure. In contrast to the reduction in the number of employees on the production side (especially in Singapore) and in Hardware Development and Administration, the Group recruited additional personnel in both Services and Sales. Overall, the Wincor Nixdorf Group headcount was 231 lower at the end of the reporting year compared to the previous year. The structural changes linked to this reorganization process mainly affected Germany and Western Europe. On the one hand, this involved cutting a number of posts. The total reduction in employee numbers for this region up to September 30, 2013, was around 500 in the two fiscal years 2011/2012 and 2012/2013. This figure was in line with the estimate given at the beginning of the restructuring measures and was evenly divided between Germany and Western Europe. The redundancies affected Production, Central Functions, and Development as well as management, support, and administrative posts within the European country organizations. On the other hand, new staff were recruited, for example in Warsaw, as part of the strategy to pool operations in Shared Services Centers; additional personnel were also recruited in fast-growing areas such as Services and Software in Germany. To a degree, therefore, we offset the loss of jobs in some areas by new appointments in others. Strategic Realignment Launched in Fiscal Year under Review. Fast-track Expansion in Software & Professional Services. In parallel with the structural changes covering Procurement, Production, and Service, in the fiscal year under review we launched an assertive policy of expansion in the areas of Software and Professional Services. Our medium- and long-term aim is to expand the market positions we established with our previous Software portfolio and exploit our potential as a solutions provider even more effectively. The campaign is also a response to the growing importance of software on the customer side. In an increasingly challenging competitive environment, enhanced software solutions allow our retail banking and retail industry customers to achieve further efficiency gains in the operation of their IT infrastructure. They also enable our customers to integrate mobile devices into their existing sales structures as a means of expanding their range of services. Furthermore, enhanced software solutions make it possible to continuously adapt the IT infrastructure to new security threats. The list of measures launched in the last fiscal year includes the pooling and standardization of our existing Software portfolio around our established Retail Banking and Retail suites. We are also broadening our portfolio in order to include new components (currently under development) and expanding the range of Professional Services with which we support our customers. Other activities relate to the recruitment

31 GRI Index Glossary 29 and promotion of suitable personnel resources as well as commercial support, marketing, and communications. ing rapidly, although it is expanding from a relatively low base compared to the global use of cash as a method of payment. New Software Headquarters in Utrecht. In order to drive the focused expansion of our Software operations and establish a supportive cultural identity within the Group for this business, we have now set up a new Software HQ in the Dutch city of Utrecht. The site will commence operations at the beginning of the fiscal year 2013/2014 and will manage Wincor Nixdorf's global Software Development and Professional Services activities. Our Software Development network is based in Paderborn and at sites in the Czech Republic, Poland, and China. The new Software HQ will initially employ around fifty personnel, most of whom will relocate from Paderborn to Utrecht. There are also plans to recruit additional staff. Utrecht was chosen following a rigorous screening process for potential sites. The city's particular strengths lie on the IT side in its strong university and business environment and as regards logistics in its proximity to the international air transport hub at Schiphol. Another consideration was the relative proximity of Utrecht to the company's headquarters in Paderborn. Wincor Nixdorf Creates Dedicated Business Unit for Cashless and Mobile Payments. During the fiscal year under review, as part of our realignment strategy designed to focus on high-growth business activities, we set up a new business unit for Cashless Payment Solutions. The unit is based in the Czech capital Prague. From the beginning of fiscal 2013/2014, it will act as the conceptual hub and central marketing point for all the Group's operations in the area of cashless payments. Up to this point, the jobs and business operations dedicated to this field had been located within different organizational units across the Group. Expansion and Strengthening of Business with Sales Partners. IThe new Partner Program we launched during the year under review is designed for global implementation and aims to intensify and facilitate our collaboration with sales partners. It establishes uniform processes and partner levels, provides additional resources to support our partners, and offers training courses spanning Wincor Nixdorf's portfolio of products and services. The measures form part of an overarching strategy designed to give a substantial boost to indirect sales through our partners. In part, the aim is to leverage potential growth in those countries where we do not have our own organization. At the same time, given that effective access to some customer groups is only possible through partners and their sales structures, we hope to exploit additional growth prospects in countries with their own sales organization. Acquisitions, New Entities, and Cooperation Agreements. To support the expansion of its business activities in fast-growing markets, in fiscal 2012/2013 Wincor Nixdorf opened a new office in the Nigerian capital, Lagos. A dedicated Software HQ was also set up in the Dutch city of Utrecht as a means of pooling the Group's Software and Professional Services expertise (see above New Software Headquarters in Utrecht ). By pooling all these activities into a single business unit, we aim to project a clearer sense of our expertise in the area of mobile payment systems. Driven by the increasing use of smartphones, the number of users taking advantage of mobile payment systems is grow-

32 30 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Economic Performance. One of our central goals is to generate additional economic benefits by embracing sustainability, e.g., by utilizing materials in a resource-efficient manner. This aspect is discussed in the following chapters. Direct Economic Value Generated and Distributed. The statement of value added outlines direct value generated and distributed to the following stakeholders: employees, the company, shareholders, the public sector, lenders, and minority interests. For more information on the individual items, please refer to the annual report. Generation millions 2012/ / /2011 Net sales 2,465 2,343 2,328 Other operating revenue Total sales and operating revenue 2,453 2,360 2,321 Cost of raw materials and supplies + purchased services 1,407 1,355 1,331 Depreciation/amortization and write-downs Other expenditure (net) Value added Per employee Distribution Employees 641 (83.0%) 616 (86.0%) 598 (78.6%) Company 44 (5.7%) 31 (4.4%) 57 (7.4%) Shareholder 44 (5.7%) 31 (4.4%) 51 (6.7%) Public sector 36 (4.7%) 27 (3.8%) 47 (6.2%) Lenders 7 (0.9%) 11 (1.5%) 8 (1.0%) Minority interests 1 (0.1%) 0 (0.0%) 1 (0.2%) The Financial Impact of Climate Change. We regard climate change as one of the greatest challenges facing our global community. Climate change is also a central issue for our stakeholders from the viewpoint of sustainability. As a technology company, we believe that we have a responsibility as well as the capability to counter the process of climate change in a proactive manner. The IT sector produces around 2 percent of global CO 2 emissions. According to a study by the international management consulting firm McKinsey & Company, this figure is set to rise to 3 percent by Against this background, Wincor Nixdorf has made committed efforts to structure both the company and its products in such a way as to conserve resources. For example, we have introduced new, energy-saving technologies that deliver both economic and environmental benefits for our customers (see below under Environmental Sustainability ). Wincor Nixdorf does not regard new climate protection regulations as posing any significant financial, physical, or other risks to the company. Furthermore, we do not currently believe that climate change will have a major impact on our business activity. Financial Assistance Received from Government. Government grants are shown in the accounts only if there is a reasonable assurance that the associated conditions will be met and the grants released. Essentially, investment grants are accounted for as a reduction of the cost of the relevant assets and lead to a corresponding reduction in systematic depreciation and amortization in subsequent periods. Grants not related to investment (such as grants from the Federal Employment Agency) are stated as a reduction of corresponding expenses in periods in which the expenses that the grant is intended to compensate are incurred. Government grants shown in the income statement amounted to 1,859k in fiscal 2012/2013 (2011/2012: 1,607k). These are invariably reported under functional costs in the Group income statement (cost of sales, research and development expenses, and selling, general, and administration expenses).

33 GRI Index Glossary 31 Market Presence. Policy, Practices, and Proportion of Spending on Local Suppliers. Wincor Nixdorf is unconditionally committed to fair competition with other companies as well as fair contractual practices with business partners. We do business according to proper legal and ethical standards, and expect our business partners, suppliers, and customers to do the same. Wincor Nixdorf seeks to establish long-term business relations based on fairness and a sense of partnership, while also integrating suppliers into the process of product development through dialog. We have drawn up a Supplier Code of Conduct based on international standards relevant to our sector, such as the code of conduct of the Electronic Industry Citizenship Coalition (EICC). Production conditions do not always measure up to the standards we require, especially in non-oecd states (OECD: Organisation for Economic Co-operation and Development). For this reason, we use supplier audits to assess the extent to which our suppliers comply with the requirements of our Supplier Code of Conduct. For more information, see the section on Human Rights Aspects for Suppliers. Commitment to the Common Good. Wincor Nixdorf is active in over 130 countries. In many of these, the company has been firmly established in business and social circles for decades as an employer, client, taxpayer, and contractor. Wincor Nixdorf takes its social responsibility toward local people very seriously. Therefore, specific projects are mainly set up in places where Wincor Nixdorf has sales or production bases. In our capacity as an employer and a client, we make a committed contribution to the regions in which we operate. In this context, we play a part in enhancing the competitiveness of the respective regions and in helping to overcome social, environmental, and education policy challenges. Our commitment takes account of the expectations of stakeholders in our corporate environment as well as the specific challenges and structures of a region. At its administrative headquarters in Paderborn, for example, Wincor Nixdorf is involved in a public-private partnership whose aim is to make the city a more attractive place to do business. The heads of subsidiaries decide independently on the level of commitment in countries where Wincor is represented through its own sales companies. Strengthening integration within the local community remains the central principle. Appointment of Local Employees and Proportion in Managerial Positions. As an international organization, Wincor Nixdorf thrives on the diversity of its staff members, which is the best way to ensure innovation and creativity across all of our products and markets. At our subsidiaries around the world, the vast majority of senior staff are derived from the respective local organizations.

34 32 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Programmed for the Future. Leading banks and retailers all over the world put their trust in software solutions from Wincor Nixdorf. In a move that will benefit international users, Wincor Nixdorf has now brought together its Software and Professional Services activities at a newly established Software Headquarters in the Dutch city of Utrecht.

35 GRI Index Glossary 33 Wincor Nixdorf President and Chief Executive Officer Eckard Heidloff opens the company's new Software Headquarters in Utrecht in the presence of Remco van Lunteren (left), Member of the Provincial Executive of the Province of Utrecht. In the words of Eckard Heidloff, the company's President and Chief Executive Officer, The opening of our Software Headquarters, from which we intend to manage the Group's worldwide Software and Professional Services operations, is another important step in the forward-looking realignment of our global activities. Wincor Nixdorf s extensive software portfolio for the banking segment covers a large number of branch processes. More and more banks around the globe are taking advantage of applications to optimize their customer services and streamline their branch processes. We plan to refine our solutions even further by reducing the level of complexity, making them even more customer-friendly, and offering a series of innovative retail banking features, reveals Stefan Wahle, the company's Head of Banking Software. We want to make a clear statement that we intend to continue our strategy of combining and optimizing our entire portfolio of applications. WELL POSITIONED Wincor Nixdorf already generates net sales of over 300 million from its Software business, making it one of the world's leading providers of software services for retail banks and retailers. Every year, around 30 percent of the company's total capital expenditure on research and development is channeled into its software activities. Out of the Group's global headcount of 9,000 employees, around 1,500 are involved in software development and associated Professional Services such as process analysis, integration services, customer-specific adaptations, training, and maintenance. Exploiting Synergies. The same goes for Wincor Nixdorf's Retail segment, with Utrecht now acting as a center of expertise and business hub for both sectors. Head of Retail Software Nicolas Pelletier explained the reasons behind the move: We are bringing all our software know-how together under one roof, sharpening up our software profile, and exploiting synergies in the development, programming, and operation of our solutions for banks and retailers. Wincor Nixdorf's solutions are also very popular among international retailers. In short, concludes Nicolas Pelletier, Utrecht allows us to take our solutions portfolio to an even higher level.

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37 Environmental Aspects Wincor Nixdorf is committed to environmental protection and the sparing use of natural resources. This approach applies equally to our corporate processes and our products. Feel environmentally responsible

38 36 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Environmental Aspects Aspect Measure Status 12/13 Carbon footprint of WN products Calculate carbon footprint of Wincor Nixdorf products as part of an environmental impact assessment and take results into account in early stages of product development. Efficiency of CHP facility in Paderborn Modernize combined heat and power plant in Paderborn to achieve marked improvement in energy efficiency. ongoing new target In line with our commitment to continuous improvement, during the year under review we adopted our first concrete environmental and social sustainability targets. The overview shows a selection of our targets and the corresponding measures we plan to take in order to achieve them. Wincor Nixdorf is committed to environmental protection and the sparing use of natural resources. This approach applies equally to our corporate processes and our products. To ensure the company acts in an economically and ecologically sustainable way, careful use of natural resources has to be an integral part of corporate culture and all corporate processes. Environmental protection is therefore a key element of our integrated management system. At the same time, environmental awareness at the company is decisively shaped by the way our employees think and act. That is why we encourage them to come up with ideas for better ways of protecting the environment as part of our staff suggestion scheme. In addition, we have established a range of measures designed to hone and intensify staff environmental awareness, such as making the subject of environmental protection an integral part of our induction program for new employees. Any potential impact on the environment is considered from the time we begin developing our product. From the very beginning, we opt for environmentally sensitive and energy-saving components and focus

39 GRI Index Glossary 37 on appropriately designed products. This enables our customers not only to reduce their energy consumption and associated operating costs but also to help protect the environment. Our objective is to avoid or at least minimize any environmental impacts. This may also include exceeding the requirements of applicable regulations. To document this commitment, our worldwide production sites are certified in accordance with ISO At all sales locations and countries where Wincor Nixdorf operates with its own companies, systematic protection of the environment is one of our guiding principles. These essential requirements are supplemented by the regional Environmental Officer according to local needs. In this way, observance of a high standard of environmental protection is guaranteed around the world. Responsibility for coordinating the global implementation of Wincor Nixdorf's environmental protection measures lies with the central Competence Center Environmental, which also develops principles and rules concerning environmental protection and supports local management. Use of Materials. Environmental Protection Right from the Start. Procurement and production are hugely important processes in terms of the potential impact on the environment and use of resources. Suppliers and outsourced parts must meet the same ecological requirements that we apply to our own company and systems. And it goes without saying that production processes at our international locations must also comply with these requirements. The basic prerequisite for environmentally sound production is a global procurement process based on economic and ecological principles, which is why Wincor Nixdorf expects its suppliers around the globe to meet the same demands for quality and protection of the environment that it places on itself Environmentally Sound Procurement Practices. For example, any outsourced parts installed in our products must meet our requirements for energy efficiency, durability, and recyclability. Our expectations in relation to environmental standards are an integral part of our Supplier Code of Conduct. In addition, we expect our suppliers to have a certified environmental management system to ISO or equivalent standard; we monitor compliance with environmental standards through audits of our suppliers. Our packaging specifications for deliveries of outsourced parts are indicative of how we work with suppliers to save resources. At Wincor Nixdorf, we maintain a multi-cycle system where individual parts or modules are delivered in standardized, stackable plastic crates, so there is no need to dispose of any packaging. It is our strategic goal to leverage efficient technologies in order to reduce our material consumption to an absolute minimum. At the same time, we are committed to incorporating within our actual R&D activities the full range of knowledge acquired during dismantling and recycling processes at the end of the product lifecycle. Our Group-wide policy of environmentally sound and recycling-conscious product development encourages the development of sustainable long-life products (with modular replacement parts) that are low-pollutant, energy-efficient, and more than 95% recyclable. Low pollutant levels are ensured in compliance with the Environmental Responsibility Agreement to comply with European regulations governing hazardous substances such as REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) and RoHS (Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment) and other international (non-european) legislation reached by Wincor Nixdorf with its worldwide suppliers of product materials. By dispensing with hazardous substances such as lead, cadmium, mercury, chromium(vi), and brominated flame retardants (PBB and PBDE) in our production processes, we avoid polluting the environment and endangering the health of our employees from the outset. As an added bonus, we do not have to contend with any disposal issues. In addition, the relevant provisions of international regulations for environmentally sound and recycling-

40 38 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects conscious product development and reusability (WEEE Directive of the EU), energy consumption, and limited use of hazardous substances (EU Directives RoHS and REACH) are also observed Group-wide at the product development stage. Proportion of Recycled Materials. Metals and plastics are the primary materials of our products. The percentage of reclaimed materials, i.e., the amount derived from scrap, is around 20%. Due to the standards we comply with, it is not currently possible for us to use recycled plastics (recyclates). These standards require the source to be clearly specified. This is very difficult in the case of recycled plastics since the individual materials making up the scrap are not identified. Reducing Energy Consumption and Avoiding Emissions. There is a long tradition at Wincor Nixdorf of reducing energy consumption. For instance, we have been working to optimize our buildings, equipment, and processes in order to reduce our energy consumption ever since the company was founded (see Reducing Energy Consumption and Avoiding Emissions for information on the use of LED lighting and the upgrading of our cogeneration plant). In developing our solutions, we include ways of optimizing any ecological impacts of the process from the very beginning by, for instance, considering the extent to which energy can be saved. Wincor Nixdorf s Group-wide policy of environmentally sound and recycling-conscious product development is fundamental to this process. Right from the start of the product development stage, agreed targets are determined. By selecting energy-efficient components in conjunction with optimized software, we are able to offer customers maximum performance capability combined with minimal use of resources. As a result, our customers are also able to make significant savings on energy consumption and operating costs. As a participant in the European Emissions Trading Scheme, Wincor Nixdorf also does everything possible to reduce greenhouse gas emissions. This includes operating a highly efficient and environmentally-sound cogeneration plant (CHP) at our largest location, Paderborn, where natural gas has been used as the primary energy source to generate electricity and heating since The cogeneration plant is currently being upgraded. This will allow us to generate 17% more electricity while maintaining the same level of energy input and heat production. At our Ilmenau site, all of our heating comes via the district heating network and some of our electricity from a nearby biomass plant. Even our present CHP, which has been regularly upgraded and uses the principle of combined heat and power generation recommended by the German government in its climate change program, boasts an energy efficiency rating of 82%, compared to the 35% generally achieved by conventional methods. That cuts the amount of carbon dioxide (CO 2 ) released into the atmosphere by around 3,500 tons per year. The waste heat generated as a by-product of this process is used year-round: in winter for heating purposes and in summer for cooling via an absorption cooling machine used to reduce the thermal exposure of processing equipment, such as our spray-painting systems and our data centers, and for the purpose of air conditioning inside our buildings. The electricity generated is fed into the internal network and thus reduces the amount we have to source externally. Approximately 60% of the electricity needs of Wincor Nixdorf at our Paderborn location were met by cogeneration in the current reporting period. Other examples of energy savings and an associated reduction in CO 2 emissions at our Paderborn site include successive replacement of current lighting with efficient, electronic ballasts for fluorescent lamps and the use of energy-saving bulbs. Since 2013, wherever technically and economically feasible, we have installed LEDs in most of our new and redeveloped facilities. Since the 1970s, we have consistently focused on lighting strictly according to need, for instance by automatically switching off lighting outside our core working hours. Movement sensors and electronic timers are used in such areas as meeting rooms in order to save energy whenever the rooms are not in use.

41 GRI Index Glossary 39 Existing circulation pumps for chilling, heating, and water cooling systems and fans (cooling tower fans and ventilators for air conditioning systems) are successively being replaced with upstream frequency converters or low-energy systems wherever technically and economically feasible. The pumps and fans are controlled as and when required, and further energy is saved as a result. Such retrofitting measures have led to annual energy savings of about 40%, which corresponds to 600,000 kwh. This represents a reduction in annual CO 2 emissions of 328 tons (based on the CO 2 emission factor of the electricity mix for Germany in 2010). At all locations where Wincor Nixdorf rents its premises, the company has little influence over the choice of energy source. Naturally, however, we do take environmental considerations into account when selecting our rental premises. Cutting back on our use of paper is another issue addressed by the company. For instance, the manuals that accompany our solutions are made available to customers as digital files and only in printed form if specifically requested. For service technicians, access to these manuals is solely via the intranet. This saves countless pages of printouts. For example, each year we send out thousands of digital copies of the file containing our operating manual for the CINEO C4060 product, which comes to around 500 pages. By delivering it in this form, we save about 3.5 kg of CO 2 emissions on the paper production process of one manual (source: Energy consumption by Wincor Nixdorf worldwide Terajoules 2012/ / /2011 Total Electricity Natural gas 2) District heating 2) Thermal energy 1) 3) Fuel 4) ) Taking into account only the non-manufacturing locations. 2) Taking into account only the manufacturing locations 3) Collective category for all types of heating energy. 4) Fuel consumption of our own vehicle fleet. Business travel by Wincor Nixdorf worldwide in m km 2012/ / /2011 Total Business travel by car Business travel by rail Business travel by air Calculation of trips via an in-house standard measurement. To determine this standard measurement, the business travel of about 2/3 of all staff was evaluated. Trips made using work vehicles are recorded under fuel consumption rather than business travel. Employees at Wincor Nixdorf routinely make car pooling arrangements with one another to reduce vehicle usage and thus CO 2 emissions. In addition, a virtual car pooling system is available for their use on the Wincor Nixdorf intranet. As a cycle-friendly company, we make covered bike sheds available to our staff and work with the police on initiatives such as cycle safety courses. These examples show how we put the principles of environmental protection into practice in our corporate processes and guidelines.

42 40 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Our Solutions for Customers. Rather than merely responding to changing regulations, Wincor Nixdorf aims to take the initiative in setting new trends and developing solutions. We take a holistic approach to the sparing use of resources, which goes far beyond the production of our actual hardware, because our software solutions and services also contribute to ecologically sound business management by us and our customers. We take the view that ecology and economy are not mutually exclusive but quite capable of complementing each other in many meaningful ways. After all, our customers demand systematic and comprehensive analysis of our solutions in respect of total cost of ownership. All life-cycle costs are determined as part of such an analysis, and that includes the total cost of hardware, software, and services, as well as aspects of downstream usage including consumption of resources such as energy. Further refinement of our solutions, including the relevant ecological considerations, is a continuous process of gathering information, making developments, and taking action. The process starts with us, moves on to our customers, then comes back to Wincor Nixdorf before beginning all over again. Fresh impetus is thus gained from the latest insights and discoveries, which in turn triggers another raft of new ideas. This is an infinite process that should never be halted in the interest of sustainable business management. Example: POS Systems. Thanks to power-saving processors and energy-efficient power sources, the electricity costs of our BEETLE POS systems and associated peripherals are significantly lower than their predecessors. Further cost cutting is achieved by our use of an intelligent power management system with various power-saving operating modes to adapt power consumption to actual needs. As a result, total energy requirements can be significantly reduced compared to conventional epos systems. In fiscal 2012/13 we improved the power pack efficiency of our new products from 80PLUS Bronze to 80PLUS Gold for new models. We now primarily use Intel s energy-saving Atom Processor technology for certain products. The typical power consumption of such models in normal use is just 20 watts, compared to 30 to 40 watts for conven- tional desktop processing systems. In addition, we have further reduced power consumption by including new technology in our cash management peripherals. Cashier screens are one example. Fluorescent backlighting has been replaced by more environmentally friendly, long-life LED technology. This delivers an average energy saving of 25% per screen (as evidenced by Energy Star 6.0 certification). Such improvements benefit our customers in a commercial sense and also help the environment by using fewer natural resources. This reflects our own conviction, i.e., only products that give customers complete satisfaction while at the same time minimizing the impact on the environment can be truly sustainable. Example: Automatic Teller Machines (ATMs). Some areas of the overall deliberation and analysis chain fall within our company s direct sphere of influence. Others, however, come into play only when our solutions are used by customers. Both the materials we choose for our hardware and the functionality of our solutions can affect our carbon footprint (CO 2 and other greenhouse gas emissions associated with a particular product). To track CO 2 consumption across the different phases of a product s life, a product life-cycle analysis (PCA) was conducted as part of a study that included cash dispensers, cash recyclers (replenishing and withdrawing funds), and account statement printers. The product life-cycle analyses of our ATMs were verified by the sustainability consultants PE International, an acknowledged market leader in strategic management and comprehensive service provision in the field of sustainability. The study highlighted the fact that only about 10-15% of the emissions over the life cycle of our solutions are generated by their development, production, and installation. About 80%, or by far the greatest proportion of emissions, occur during the day-to-day operation of our systems through the use of electricity and through maintenance or replenishment. The remainder is attributable to the process of dismantling and recycling obsolete machines. In all phases of the life cycle of our products we work on the continuous improvement of energy efficiency.

43 GRI Index Glossary 41 Example: New Energy-saving GreenIT Mode. In most cases, ATMs and self-service checkouts remain operational 24 hours a day. However, statistical analysis of usage data shows that at some sites they are not actually used during certain periods. Following the introduction of a new version of Wincor Nixdorf's PC/E Server 2.4, these terminals can now revert automatically to energy-saving mode. Example: Automated Cash Handling. Thanks to our cash recycling technology, which enables continuous cash deposits and withdrawals at ATMs, Wincor Nixdorf has streamlined the entire cash cycle from start to finish. After subjecting any deposited bank notes to a forgery and authenticity check, the systems immediately make them available for dispensing, which delivers significant cost savings. The ability of ATMs to accept and dispense, i.e., recycle cash, means the intervals at which they are replenished or emptied by cash-in-transit companies can be reduced. As a result, the number of trips required is reduced by 30-50% along with the associated carbon footprint. Energy-efficient Data Centers. We maintain and run complete data centers for some of our customers. In doing so, we favor the use of leading-edge technologies to optimize the benefits to customers and cut costs. One example of this would be virtualization of server resources and the use of efficient workplace systems. For instance, we succeeded in driving down the electricity costs of a key Hamburg client by about 340,000 and reducing the company s carbon emissions by approx. 166 tons per year, simply by changing the IT infrastructure of their branches and workplaces. In view of the ever-increasing energy costs facing companies, this adds up to significant savings for our customers and the environment. Regular modernization of corporate hardware also has further positive effects. In the past five years, for example, the processing speed of modern servers (blade servers) has increased fivefold, yet over the same period, power consumption per server has dropped by more than 50%. We pursue a strict policy of using only cutting-edge and extremely energy-efficient hardware. These systems are continually reviewed by us to monitor their energy efficiency and make any appropriate further improvements. With a view to achieving further efficiency gains, in fiscal 2012/2013 Wincor Nixdorf set up a team with global responsibility for our data centers. The initial results of these endeavors include the design and construction of a highly energy-efficient data center that delivers an exceptional level of availability. In order to maximize availability, this data center was doubled over two independent sites so that one center can take over the work of the other. On the energy efficiency side, we installed an improved air conditioning system and a method of supplying electricity that minimizes power loss. Optimizing Technician Callouts for Fewer Site Visits. To achieve the best possible economic and ecological benefits for our customers and the environment, we take various measures to avoid or reduce the number of technician callouts. Due to the clear layout of the entire system and consistent labeling of any components that customers may open without assistance, many faults can be rectified by our customers themselves, without the need for any callouts. This is a further outcome of our user-friendly and environmentally sound approach to product development. In the area of IT operations, we offer customers the option of linking their systems to our support resources via our state-of-the-art online services platform. We can then identify events and errors by, for instance, undertaking automatic and preventive remote maintenance measures, and often remedy them online before they result in a system failure. We are already capable of resolving a large proportion of such faults remotely, i.e., by analyzing and electronically rectifying faults from a remote location via an online platform. Moreover, our own service desks enable us to clarify and resolve any further issues customers wish to discuss by phone. What is more, through our remote software maintenance service, we are able to upload and monitor new applications on their behalf via an automatic software distributor. This enables us to reduce the number of technician callouts by a considerable margin.

44 42 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Intelligent Network for Technicians. Whenever technician callouts are still required, they are also carried out efficiently. To ensure our technicians always have access to the right service parts, we have a global logistics network at our disposal, with many local service parts centers. This means our technicians can respond rapidly when a customer needs replacement parts delivered, and long driving distances can be avoided. This reduces our fuel costs and CO 2 emissions. Furthermore, by maintaining a high proportion of reworkable service parts and a global repair network, we are able to reduce the need for new parts by a significant margin. Most of the vehicles driven by our technicians are equipped with environmentally friendly technology. In Germany, for instance, all of our vehicles run on diesel engines fitted with particulate filters. Furthermore, in 2013 we began the process of replacing our existing vehicle fleet with new, even more environmentally friendly models. This involves ensuring that all our new vehicles are equipped with automatic stop-start technology. Together with more advanced engines, this reduces standard fuel consumption to 3.8 litres/100 km and CO 2 emissions to 99g/km. Water Consumption. The goal of Wincor Nixdorf is to avoid any pollution of waterways and keep our consumption of water, as a natural resource, to an absolute minimum. Our water withdrawal sources are predominantly tap water. To the best of our knowledge, Wincor Nixdorf extracts no water from any sources where the volume of withdrawal has a significant impact on any ecosystems. At the Paderborn site, Wincor Nixdorf maximizes the opportunity to use groundwater for cooling purposes, as an ecologically sound way of conserving local drinking water resources. Wherever it is feasible and sensible to do so, we employ various technical methods to reuse water in our production processes. One example of this would be the way we utilize industrial washing water at our electroplating plant, where rinsing water is reused in a cascading motion that runs in the opposite direction to the material being washed. The closed water loop systems used at our industrial spray-painting and electroplating plants represent state-of-the-art technology. Waste water at all (production) sites is disposed of via municipal effluent systems into local treatment plants. We are not aware of any harmful effects on waterways relevant to our operations, nor do we expect any to occur in the future. Effluent from such processes as electroplating and spray-painting is pre-treated very effectively in our own wastewater treatment plants before being discharged into public sewage systems. Currently only uncontaminated cooling water is discharged directly into the river Alme at our Paderborn site. This discharge process is officially authorized and regularly checked by Wincor Nixdorf and the responsible monitoring authorities. No contamination of the Alme occurs as a result.

45 GRI Index Glossary 43 Water usage by Wincor Nixdorf worldwide 1,000 m / / /2011 Drinking water consumption Groundwater consumption 1) Direct discharge of wastewater 2) Indirect discharge of wastewater The difference between water consumption (drinking water and groundwater) and wastewater discharge (direct and indirect) arises from water loss due to the evaporation of cooling and process water. 1) Groundwater is only extracted at the Paderborn production site. The groundwater extracted is used as cooling water in an ecologically sound manner, for which we hold an official permit. 2) Direct discharge into wastewater systems only occurs at the Paderborn site in the form of cooling water. Biodiversity. Maintaining and preserving ecological diversity is a key element of what we do. Wincor Nixdorf has detected no significant impact of its activities, products, and services on biodiversity to date. We apply a basic policy of not having any (production) sites in reserves or protected areas, and instead confine such activities to designated commercial zones. Wherever possible, we rent existing buildings to avoid using any additional land space. Where we do erect buildings, we adhere to local building regulations and codes, which vary from country to country. As far as we are aware, no land currently used anywhere by the Group is in need of regeneration. Emissions, Effluents, and Waste. Emissions. Our ongoing objective is to maintain our current low level of emissions and wherever possible reduce it even further. However, our CO 2 emissions from flights have risen consistently from 25,700 metric tons in fiscal 2010/11 to 36,900 metric tons in fiscal 2012/13. This is mainly due to changing requirements as a result of corporate reorganization and restructuring and the constant expansion of our international project business. Wincor Nixdorf has participated in the Carbon Disclosure Project (CDP) since 2006, primarily in relation to Scope 1 (energy generated ourselves) and Scope 2 (purchased energy). The procedure of determining and evaluating the CO 2 emissions of our own energy consumption has thus become common practice. The CDP is a non-profit organization that was set up in London in the year 2000 with the aim of encouraging dialog between investors and companies on climate change issues. Today the CDP is the world s largest, freely accessible register of corporate CO 2 emissions. The combustion processes for which Wincor Nixdorf is directly responsible and the relevant levels of NOx and SOx emissions only occur at the Paderborn site. The affected facilities are the cogeneration plant (CHP), the thermal post-combustion system at our spray-painting plant, and the heating boilers. At the Paderborn site, 6,151 square meters of the land runs into the nature reserve known as the water courses and river flood plains of the River Alme (or Almenaue). This area is deliberately kept in its natural state and protected by Wincor Nixdorf. An assessment of threatened species in this part of the Almenaue has been undertaken and is available on request.

46 44 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Emissions by Wincor Nixdorf worldwide 1,000 t 2012/ / /2011 CO 2 -Emissionen 1) 2) NOx-Emissionen 3) 4) SOx-Emissionen 3) 4) ) Determination of CO 2 emissions occurs via standard values per emission source. 2) Direct and indirect energy consumption, fuel consumption of our own vehicle fleet, and business travel are taken into account. Product transportation is taken into account in a different area. 3) The figures relate to our own direct combustion processes (CHP, heating, etc.) at our production sites. 4) All non-manufacturing sites are rented premises where no combustion processes occur. At our production sites, cooling systems with ozonedepleting substances are still used in some cases. These systems undergo internal and contractually regulated external monitoring (e.g., regular impermeability checks and other obligatory documentation) as part of our duty to meet statutory requirements. Our aim is to replace these substances with more ecofriendly alternatives wherever possible. As far as technically feasible, new cooling systems are designed to be as efficient as possible and to maximize the proportion of free cooling. Free cooling is a method that relies on sufficiently low outside temperatures to cool equipment without a technical cooling process. in t Avoiding Emissions. Business Travel and Work-related Trips. In order to limit potential business travel, Wincor Nixdorf makes every effort to use video conferencing and e-meetings wherever possible. This allows colleagues at different locations around the world to come together for international conferences, training courses, and meetings. This option is now an increasingly common element of day-to-day communication, especially for teams dispersed across several locations. In Germany, 822 (99%) of the 833 company cars in use have now been converted from petrol- to diesel-powered engines with particulate filters. Likewise, all 327 vehicles used by our service technicians in Germany already run on diesel. Ecologically Powerful Logistics Chain. An international company with production locations on three continents is particularly dependent on shipping arrangements that are cost-effective and environmentally sound. After all, significant resources can be saved at the transportation stage: through efficient logistics, the right packaging, and the best means of transport. A holistic approach to environmental protection means sustainable business activity does not stop as soon as the products have been manufactured, but also includes the entire shipping process. For intercontinental deliveries, we generally use maritime transport, which is more environmentally friendly than air freight. Our declared intention is to cover more than 90% of our transport requirements via sea freight operations. Local for Local. This phrase denotes the principle of producing customer goods locally wherever possible. As a result, transport routes can be optimized, time and cost savings achieved to the benefit of the customer, and the impact on the environment kept to a minimum. We already produce around 95% of the products delivered to our Asian customers in Asia itself. The proportion of products dispatched by truck from Germany has risen from 40% in fiscal 2010/11 to 50% in fiscal 2012/13.

47 GRI Index Glossary 45 Product transportation by Wincor Nixdorf worldwide in million t x km 2012/ / /2011 Total Product transportation by truck Product transportation by rail Product transportation by ship Product transportation by air Product transportation by air These figures relate solely to our production sites. Only the transportation for which Wincor Nixdorf bears responsibility was taken into account. The transport route was determined as the straight-line distance between the production site and the destination. Packaging for Shipment. Regardless of the means by which the products reach our customers, environmental protection starts with the packaging. For our land shipments, we almost invariably use packaging that consists of cardboard with a high proportion of recycled paper as well as recyclable PE film (polyethylene). Alongside the above-mentioned materials, we primarily use packaging made of environmentally sound wooden materials for sea and air freight. Efficient logistics also means maximizing the capacity of all freight units. For this reason, we take care at Wincor Nixdorf to ensure all freight space is used to optimum effect when our products are placed in any shipping containers. After all, only fully utilized containers make economic and ecological sense. The guiding principle of our waste management policy is that avoidance and reuse are better than disposal. For this reason, reprocessing and reuse of raw materials, supplies, and other consumables have been standard practice at our factories for years now. in % Waste Types. The only hazardous waste requiring any form of disposal comes from surface treatment processes (such as electroplating and spray-painting). By enhancing our processes, we have managed to significantly reduce the hazards and volume of such waste. Examples of this include: 1. Electroplating: ever since we switched to a process free of cyanide and chromium(iv) in 2006, the problem of electroplating slurry has been eliminated; 2. Spray-painting: in 2009 we also replaced our wet separation process with a system for dry separation of overspray, thus eliminating the problem of paint slurry and wastewater. Waste Separation. From our administration offices to our production lines, we are committed to thorough sorting of various types of waste. Treatment of Hazardous Waste. Wincor Nixdorf does not export or import any hazardous waste. All waste, including non-hazardous waste, is disposed of incountry and in accordance with the relevant statutory regulations by qualified waste disposal companies. Waste by Wincor Nixdorf worldwide 1,000 t 2012/ / /2011 Total Hazardous waste for reprocessing 1) Hazardous waste for disposal 1) Non-hazardous waste for reprocessing 2) Non-hazardous waste for disposal 2) These figures relate solely to our production locations. 1) All non-manufacturing locations essentially consist of office and development departments where no significant volume of hazardous waste occurs. 2) In all our non-manufacturing locations, Nixdorf Wincor rents premises, frequently occupying only part of larger rental properties. Waste disposal is not documented on an itemized basis in these cases. Significant Spills of Pollutants. No significant unplanned release of environmental pollutants occurs (in respect of land, water, or air).

48 46 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Products and Production Initiatives to Mitigate Environmental Impacts. As soon as the features of any hardware or solution are determined at the design stage, the following fundamental ecological considerations become an integral part of the development phase: choice of materials, energy efficiency, durability of components, recyclability, and low-impact disposal. Targets for the subsequent environmental compatibility of our products are set early on as part of the development process. Durability. The long service life of our solutions is achieved through fundamental upgrade options for hardware and software for the term of their useful lives, as well as a high degree of serviceability. Upgrading involves taking advantage of the option to exchange a product for an improved configuration or version. Recyclability. The prerequisite for careful use of resources and reusability is optimal choice of materials. This is achieved by only using standard plastics and generally avoiding any composites, such as metal-plastic compounds, which would prevent optimal recycling. Our product recovery rate lies at over 95% (as regards materials and energy used). On request, ( old ) models returned by our customers are restored ( refurbished ) and resold. In addition, certain modules for service part supplies are also generated from such returns or trade-ins. We accept end-of-life equipment throughout the European Union in accordance with the national provisions of the European WEEE Directive (Waste Electrical and Electronic Equipment Directive) and arrange for it to be recycled. As a manufacturer and importer, Wincor Nixdorf (or in this case the European branches of Wincor Nixdorf) is obliged under the provisions of the WEEE Directive to report to the competent authorities the quantities of equipment placed on the market as well as the volumes of used equipment returned to us, along with the corresponding recovery rates (the approved disposal companies are obliged to supply such data to Wincor Nixdorf). Using Germany as an example the country selling the highest volume of products, the following table presents the return quota over a period of several years. Return quota Germany % Return quota 1) Germany These figures relate solely to our production locations. 1) Return quota = Products taken back in the period under review (in %) = Products taken back x 100 / Products sold in the period under review. The figures vary as a result of different sales and return volumes. The latter cannot be predicted reliably, particularly as market life cycles of up to ten years are possible. Careful Use of Resources Thanks to Reverse-vending Solutions. In Europe alone, packaging waste amounts to some 60 million tons each year. One fifth of that comes from beverage packaging, including 3.23 million tons of PET bottles. In 2012, 1.68 million metric tons (52%) of used PET bottles were collected. This represents an increase of 5.6% on the figure for Every single percentage increase in the recycling quota would save around 40 million liters of crude oil. With this in mind, our commitment to reverse-vending systems that encourage the return of used bottles and cans is a good example of sustainable business practice. Our solutions help make non-refillable and refillable packaging available for recycling and preserve precious resources. In order to increase this effective contribution to minimizing the environmental impact of packaging, we continually refine our reverse vending technology. Our solutions are designed to use only a small amount of electricity. Non-refillables are compacted using the very latest and cleanest methods and immediately fed back into the recycling loop, while refillables are sorted by type and also fed back into the system. Compacting the containers on site achieves a significant reduction in the overall volume of packaging, thus reducing transport requirements. In Germany alone, more than three billion beverage containers p.a. are fed back into the recycling loop via Wincor Nixdorf systems. This organized approach means that, in the case of PET bottles for instance, large quantities of used PET bottles are automatically sorted into various grades of plastic, which simplifies the whole recycling process. Using recycled PET

49 GRI Index Glossary 47 rather than virgin PET granules in production leads to a significant improvement in a company s carbon footprint. About two-thirds of the recycled material which can be reclaimed up to eight times is used for textiles, with the remainder going into plastic film, bottles, tape, and other products. The scrap aluminum from used cans can be reprocessed using far less energy than the original manufacturing process and with hardly any loss of quality. In addition, the recycling process itself also achieves a significant reduction in CO 2 emissions. Packaging. For all our packaging requirements, we choose recyclable, single-material packaging, such as cardboard made from recycled paper or reconstituted wood pulp. For our product packaging, the following figures indicate the percentage of materials generally used (by weight) in each case: System packaging: approx. 95 weight percent corrugated cardboard with high proportion of recycled paper and 5 weight percent plastic (PE film) Single packages and service parts packaging: 100 percent corrugated cardboard with a high proportion of recycled paper Reusable packaging for service parts: exterior packaging made of corrugated cardboard with a high proportion of recycled paper, approx. 75 weight percent; plastic (PE foam) approx. 25 weight percent. On request, we also accept product packaging returned to us by customers. Ecologically Responsible International Production. The same strict compliance with environmental standards that we demand during the procurement process is also applied to our own production process not least because production is such a crucial factor in the protection of our environment and sparing use of resources. For this reason, our fundamental approach is to avoid or minimize any environmental impacts as much as possible. Improving our production methods to mitigate any environmental impacts is a continual process. The following examples illustrate the reductions we have already achieved by using state-of-the-art engineering and technology to maximize our consumption of energy, materials, and water, and to avoid waste, effluent, and emissions. As our largest production site, Paderborn plays a particularly important role in this regard. Sheet-metal Processing. We are committed to optimizing our production machinery wherever more cost-effective and suitable eco-friendly alternatives exist: in fiscal 2011/2012, for instance, we put a new laser-cutting machine into operation and in fiscal 2012/2013 a new welding system. These systems are approx. 30% more effective than the predecessors that they have replaced. This has made an important contribution to the further reduction in our energy consumption. Spray-painting Plant. At our industrial spray-painting plant, which began operation in 2008, a high-quality, durable coating is applied to our products. Effective waste avoidance is achieved here by such means as treating solvents to make them suitable for reuse. We use phosphate-free corrosion protection in the pre-treatment of metal parts to avoid creating the kind of slurries that used to require disposal. To reduce water consumption, we have installed a rinsing water circuit. The manually operated spray-paint stations actually produce no waste water at all. Our plant for powder coating of metal parts does not use any water or solvents whatsoever. Energy efficiency is also increased by using waste heat from thermal treatment of exhaust air as a heating source.

50 48 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Electroplating. To extend the service life of our products, the surfaces of most metal parts in our devices are electroplated. Consumption of fresh water and resultant waste water volumes are minimized by multiple reuse of rinsing water and effective measures to prevent the contents of one plating bath being transferred to the next. In addition, no hazardous substances such as cyanide or chromium (VI) compounds are used in our electroplating process. Ever since 2009, no slurries containing cyanide have been generated by our factories as a result of this precaution. The requirements and standards we demand of our German production sites in Paderborn and Ilmenau also apply to our international production and assembly locations. For instance, at our soldering plant in Shanghai, electronic circuit boards are soldered using state-of-the-art equipment. The fluxing agent used at this plant eliminates the need for downstream, waterbased cleaning processes, and soldering residues are also fed back into the material cycle. Since the solder used does not contain any lead compounds, the entire soldering process complies with the EU RoHS Directive. Compliance Relating to the Environment. As an international manufacturing company, Wincor Nixdorf is subject to underlying global and social constraints. Consequently, we are of the firm belief that our long-term success can only be achieved through sustainable commercial activity. For this reason, the environmental management system at Wincor Nixdorf was initiated by our Board of Directors and is implemented by managers across all areas of the Group by means of directives and processes. In this way, we have fully integrated the environmental management system into our day-to-day work. and heighten the environmental awareness of our employees. Wincor Nixdorf aims to not only meet the relevant standards but also exceed them. We design all products in compliance with international legal requirements from regulations relating to environmentally sound and recycling-conscious product development and reusability (WEEE Directive of the EU), and those governing energy consumption, through to restrictions on hazardous substances (EU Directives RoHS and REACH). Wherever possible, we aim to do more than required of us by law. Our environmental management at Wincor Nixdorf is also characterized by a relationship of trust maintained with supervisory authorities. It is also true to say that we are unaware of any fines or other sanctions imposed for non-compliance with environmental laws and regulations. Environmental Protection Expenditure and Investment. Wincor Nixdorf does not record investments in environmental protection separately, as this is not common accounting practice. Nevertheless, environmental considerations are naturally taken into account whenever investments are made. For instance, the improvements made to our spray-painting plant include investment in waste avoidance methods and reduced water consumption, without such measures appearing as separate accounting entries. This is also the case for our investment in a modern and much more energy-efficient CHP plant in Paderborn. These are just two examples. Our international Group production facilities in Paderborn, Ilmenau, and Shanghai have been certified to the environmental management standard ISO Progress on environmental matters is assessed and monitored against the backdrop of our corporate strategy in an annual management review. Alongside this, we specify measures as part of our environmental management programs to increase resource efficiency

51 GRI Index Glossary 49

52 50 80 Tons Delivering More Power with Lower Emissions. With each of the new generators weighing in at 16 tons, the operator of the heavy crane has a very delicate task ahead when it comes to lifting them off the transporter into Wincor Nixdorf's on-site power station. Step by step, the technicians replace the five old generators at the combined heat and power (CHP) plant with new ones. For decades, Wincor Nixdorf's Paderborn site has made every effort to produce environmentally friendly electricity from its own CHP. During the last fiscal year, we took the first steps towards replacing the old CHP with the very latest technology. Wincor Nixdorf AG Sustainability Report 2012/2013

53 51 From an environmental perspective, the crucial advantage of combined heat and power plants is the fact that they produce both electricity and heat. This means that our factory in Paderborn can make use of the waste gases from the electricity being produced to heat water and cool the buildings. The CHP's five modern 1,200 kilowatt turbines can now provide the site with electricity and heating/cooling. The new CHP system delivers even more power and is more efficient than its predecessor. In specific terms, this means generating more electricity and heat from less energy. If we assume the same level of energy input, the new CHP produces around 17 percent more electricity than the old plant. At the same time, it generates roughly 20 million kilowatt hours of heat. To generate the same amount of heat using natural gas we would need to burn around 2.2 million cubic meters a year, enough to heat approximately 1,200 one-family homes. All this is achieved with lower emissions, primarily carbon dioxide (CO2). Our new CHP plant therefore makes an important contribution to Wincor Nixdorf's efforts to protect the environment and make careful use of resources. From an environmental perspective, this means that CO2 emissions from electricity production at the new CHP plant are 37 percent lower than would be the case with conventional electricity generation from a coal-fired power station. The new plant will generate over fifty percent of the Paderborn site's total electricity requirements. FAC T S A ND FIGURE S Five high-tech 1,200 kilowatt turbines weighing a total of 80 tons 37 percent lower emissions 17 percent higher electricity yield 20 million kilowatt hours of electricity 20 million kilowatt hours of heat * based on one year Wincor Nixdorf AG Sustainability Report 2012/2013 A delicate touch is needed when it comes to unloading the 5 x 16 ton turbines. It took around two hours to move the turbines from the heavy transporter to the power plant.

54 Safety first

55 Social Aspects Social sustainability at Wincor Nixdorf means that the highest possible balance between the welfare to employees and the responsibility towards the public as well as the business profit is achieved.

56 54 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Social Aspects Aspect Measure Status 12/13 Occupational Safety Establishing a worldwide reporting system for occupational accidents in order to compile accident statistics and to derive binding measures for the avoidance of workplace-related accidents People with Spirit Implementing training and qualification initiatives and staff development programs ongoing new target In line with our commitment to continuous improvement, during the year under review we also adopted our first concrete social sustainability targets. The overview shows a selection of our targets and the corresponding measures we plan to take in order to achieve them. At Wincor Nixdorf, we understand social sustainability to mean achieving an optimum balance between our efforts to return a profit on the one hand, and on the other to care for our employees and meet our responsibilities towards the wider public. With regard to the workforce, this is not only a matter of providing attractive working conditions and showing a commitment to HR development; it is also about creating a motivational business culture, based on the guiding principle of our long-standing People with Spirit program, that genuinely regards individuals as a crucial factor in the value chain. Overall, through a combination of market-led yet fair working conditions, a modern health management system, and a culture that emphasizes openness, fairness, and respect, we hope to maintain and add to the skills, dedication, and capacity for work of our employees throughout their time with us. One of the main challenges facing Wincor Nixdorf is that of responding to changing demographics and social policy. Many of our employees will retire at some point over the next few years; at the same time, however, due to our expansion and the company's strategic realignment, we still have a substantial need for highly qualified personnel. In response, our human resource planning and development activities must include measures to recruit enough suitably qualified new staff and provide dedicated ongoing training as the basis for our continued, long-term success.

57 GRI Index Glossary 55 FORWARD-THINKING AND SUSTAINABLE HUMAN RESOURCES POLICY. Staff Development. Employees: Fostering, Challenging, and Engaging the Workforce. Companies are shaped by people. It is they who push forward developments, create innovations, help to define markets, and, last but not least, shape the way the company is perceived by customers, business partners, and the wider public around the globe. It is the commitment and creativity of the workforce that ultimately make the difference in the face of international competition every day, in over 130 countries that host one of our subsidiaries or local partners. We know that our employees are the driving force behind our organization, and we shape our human resources policy accordingly. One of our foremost tasks, therefore, is to set up concrete programs and targeted leadership training in order to promote a business culture based on values such as motivation, creativity, expertise, and team spirit. Our aim is to create a win-win situation for both employees and the company in equal measure, i.e., one that benefits all those involved. Where appropriate and in the interest of both sides, we test and certify internal training courses to ensure transparency with regard to our employees' skills. People with Spirit: Developing Leadership, Responding to Change. This is an area in which Wincor Nixdorf has been consistently proactive. During the period under review, for example, we expanded our leadership and change management programs. Our approach emphasizes the promotion of employees from within our own ranks. By offering them targeted professional development, we are contributing significantly to the success and future prosperity of our company. These staff development measures are geared towards employees at all levels of the organization. In response to the many changes we are making, each and every employee needs to show great flexibility and the capacity to help shape those changes in a constructive way. We are providing new training courses to help our managers and employees acquire these skills. In the previous year, we developed and introduced a new methodology for our international sales force. The aim is to provide effective support when dealing with the anticipated changes brought about by the Group-wide restructuring program and to embed those changes within the organization. In total, more than 900 sales and support personnel around the globe attended training courses. During the year under review, this methodology was consolidated through a focus on appropriate manager training. As a learning organization, we are also expanding our range of training courses and aim to ensure that best practice (i.e., tried-and-tested, effective, and exemplary methods, practices, and approaches) is shared by the entire workforce. At the heart of these measures are seminars and workshops for technical, managerial, and sales staff, as well as product training. Fostering Talent, Preparing the Next Generation. In a world of fluctuating markets, growing internationalization, and increasingly strong competition, a systematic approach is needed to ensure that key positions within the company are filled by qualified employees. It makes sense, therefore, to begin looking for and developing future key players amongst one s own ranks. In fact, over 50% of the candidates in our internal talent pool have been promoted within the company. Potential successors are identified and systematically equipped to take on additional responsibilities. This is not merely a case of designating successors for particular posts but of supporting from an early stage particularly motivated, creative, and spirited employees, so that they can take over new areas of responsibility in the future. The high proportion of those employees identified as potential key players who have gone on to accept new positions of responsibility in One Wincor Nixdorf is evidence of the success of our strategy in dealing with the current process of change. The process is marked by a strong cooperative approach right from the talent development stage. This approach is subsequently maintained throughout. Those individuals who took part in the career development program can still draw on the international talent pool network, especially when challenges arise in their new roles.

58 56 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Multiplying Knowledge. In order to equip our employees as successfully as possible to deal with the respective tasks they face, we actively encourage the sharing of expertise and experience at an international level. Thus, colleagues from different countries meet in virtual team rooms, conduct conferences and training sessions together, and hence share their expertise and relevant information in a prompt and efficient manner. We can draw on a large internal pool of trainers and in the last fiscal year introduced a new, cutting-edge Train the Trainer method (systematic training led by experts for future experts) to help them acquire specific new skills. Initial and Ongoing Training. Customized Training. In Germany, Wincor Nixdorf boasts a long history of training young people; this also reflects the responsibility we feel for society as a whole. However, it also means that we have to respond and adapt to changes in society and the world of business. At present, for example, there is an unmistakable trend among applicants and within the company away from traditional apprenticeship-based careers towards a dual study/training model. In this respect, Wincor Nixdorf has to address the changing nature of the labor market and of the skills required in today s world. For students from many disciplines, the stimulating internships, joint work/study placements and research opportunities we offer serve as an introduction to real practice. This establishes a bond with the company at an early stage and thus enables us, as an attractive employer, to appeal to particularly well-qualified graduates. In doing so, we cooperate closely with universities and colleges. Indeed, we succeeded in further expanding this partnership during the reporting period. The success of our company hinges on the development and training of our workforce. All supervisors/ line managers are expected to conduct a private interview with each employee at least once a year. During this interview, supervisors/line managers are meant to assess and comment on the quality of the employee s work during the preceding year. They should also give their team members an opportunity to comment on their role and achievements, the working environment, and the performance of their line managers. Further training measures are to be agreed upon mutually. We have also developed attractive new staff development programs with outside training organizations (full- or part-time) that give our ambitious staff opportunities to gain additional skills and qualifications. This helps to expand our skills base and thus benefits both employees and the company in equal measure.

59 GRI Index Glossary 57 Promoting Target-oriented Learning. Knowledge quickly becomes redundant. To ensure our employees are equipped with all the latest information and skills they need for their work, we employ modern, target-oriented methods such as e-learning and blended learning, a teaching and learning concept that effectively combines attended courses with virtual study using new information and communication media. This allows our employees to control their own progress and acquire the specific skills they need more independently. The targeted analyses produced in the reporting year by our global Learning Management System helped to control and monitor learning processes even more efficiently. By way of example, our sales training courses use the acclaimed Miller Heiman method of developing individual marketing solutions and sales strategies. LABOR PRACTICES AND DECENT WORK. Employment: Total Workforce by Employment Type and Region. Number of Employees. As at September 30, 2013, 8,826 employees worked for Wincor Nixdorf worldwide, 231 fewer than the preceding year (2011/2012: 9,057). Employees by region 2012/ / /2011 Total 8,826 9,057 9,171 Germany 3,774 3,808 3,985 Europe (ex Germany) 2,725 2,622 2,623 Asia/Pacific/Africa 1,536 1,825 1,734 Americas Employees by occupation 2012/ / /2011 Total 8,826 9,057 9,171 Production 1,272 1,578 1,653 Sales 2,726 2,674 2,729 Service 3,826 3,756 3,688 R&D Administration Staff turnover rate % 2012/ / /2011 Staff turnover rate (total) Germany International Staff turnover (notice of resignation given by employee) Germany International Worldwide, the staff turnover rate for the Wincor Nixdorf Group increased to 12.3% in the reporting period (previous year: 11.3%). In Germany, the rate fell from 5.0% in the preceding year to 4.2%. At an international level, the staff turnover rate rose significantly by 2.5 percentage points to 18.3% (previous year: 15.8%). On a global scale, the rate of employees leaving the company after giving notice was 6.0%, a year-on-year decrease of 2.2 percentage points (previous year: 8.2%). There was a decline in this rate both in Germany (from 2.9% to currently 2.2%) and internationally (from 12.0% to currently 8.9%). Overall, the Group's headcount fell both outside Germany (from 5,249 in 2011/2012 to 5,052) and in Germany (from 3,808 in 2011/2012 to 3,774). This is partly due to the outsourcing of value chains ( especially on the production side) to external companies and further efforts to exploit synergies as part of the Group restructuring process.

60 58 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Labor/Management Relations. Although Wincor Nixdorf has evolved into an international corporation, it nonetheless continues to be shaped by its heritage as a medium-sized enterprise. This is reflected in the direct, dialog-based interaction between the company and its employees. In addition, the senior management team fosters close and trusted cooperation with employee representatives in works councils and trade unions. At a company level, the interests of the employees are represented within the Supervisory Board by six board members, in accordance with legal requirements. Wincor Nixdorf respects the right of its employees to unionize in accordance with national legislation. The works council is informed by the company about all significant changes within the organization and puts forward its own views during consultations with the company's management. In addition, the company informs the various committees representing employees of the economic situation and of essential changes within the Group and its member companies. The agreements made with the trade unions also cover subjects connected with occupational safety. Employees are kept informed promptly and in due time by Wincor Nixdorf (through internal modes of communication) about significant changes relating to the company. This information is generally passed on by the respective line managers. As a supporting measure, biannual meetings are held for the top management level worldwide. Participants at these meetings ensure that they channel any new information down to a local level and update their respective teams. Work-related Social Benefits. Retirement benefit schemes are in place for some employees of the Group. These vary in accordance with the legal, economic, and taxation conditions of the respective countries and generally take the form of defined benefit plans. This section mainly relates to employment conditions in Germany. Reflecting the company's origins, this country still accounts for 43% of the global workforce. Under employment law in Germany, pension obligations are generally based on direct performance-related commitments in the form of defined contribution plans. Beneficiaries receive varying yearly contributions according to their individual pay scale group or contractual classification. In Germany, Wincor Nixdorf also operates various employee-financed company pension schemes, including deferred compensation via a pension fund or the internal deferred compensation system. Instead of a cash pension entitlement, employees can apply for direct employer approval of a defined occupational pension scheme. Wincor Nixdorf also provides supplementary insurance as an addition to statutory health insurance cover to employees and their families at reduced rates. Company Social Counseling and Health Management. Modern corporate structures and increasingly complex working processes are bringing people to the forefront of company policy. This calls for changes in the way personnel departments work, with the emphasis shifting to more integrated and systematic approaches. By firmly establishing company social counseling and effective health management, we hope to sustain and further improve the capacity to work, commitment, and motivation of our staff over the long term. Company Social Counseling. To meet our own commitment to deliver comprehensive support to our employees, Wincor Nixdorf offers company social counseling to assist staff based in Germany with

61 GRI Index Glossary 59 the minimum of bureaucracy. Employees may take advantage of counseling if they find themselves in the following challenging situations, for example: Long-term or serious illness Returning to work after an illness Addiction problems Personal conflicts Social, emotional, or psychosomatic problems Preparing for retirement Preventive Healthcare. We aim to help our employees stay healthy with a wide range of company health promotion measures put in place with the cooperation of company doctors and health insurance companies. We regularly raise awareness of health risks among the workforce in Germany by, for example, organizing campaign days devoted to issues such as cardiovascular and stress resistance testing. Information on related causes of illness and options for prevention is also provided. Aside from the campaign days, our staff can take advantage of numerous advisory and preventive programs. The company places great importance on the analysis of incapacity for work and (subject to data protection rules) the causes of incapacity. We believe it is vital to discuss these issues and to implement preventive measures where appropriate. If there is a need, we set up health groups, usually with the involvement of representatives from health insurance companies. In addition, locations such as Paderborn have teamed up with other local companies to develop wide-ranging fitness programs. Sports such as football, volleyball, running, and other events are arranged through the company and the Heinz-Nixdorf Betriebssport association. Occupational Health and Safety. Occupational health and safety is an integral component of the sustainability system at Wincor Nixdorf. Within this context, uniform principles and rules on health and safety in the workplace are defined and implemented for Wincor Nixdorf around the world. These essential requirements are supplemented by the regional Safety Officer according to local needs. In this way, observance of a high standard of staff protection is guaranteed around the world, and the company is able to respond to local legislation and specific customer requirements with flexibility and speed. Responsibility for coordinating the global implementation of Wincor Nixdorf's occupational safety measures lies with the central Competence Center Safety, which also develops principles and rules concerning occupational safety and supports local management. The Center is guided by OHSAS 18001, the international standard on occupational safety management systems. However, supporting and advising employees on all aspects of health and safety in the workplace is equally important. To facilitate this, Wincor Nixdorf appoints suitable staff members as occupational health and safety specialists at every site. The number of specialists in each case depends on the size of the company in question: Safety Expert (at least one per production site) Safety Commissioner (one per 100 employees) Evacuation Aider (one per 20 employees) Fire Warden (one per 20 employees, or one per 10 employees at production sites) First Aider (one per 20 employees, or one per 10 employees at production sites) Specialists receive intensive preparatory training (both internally and externally) before taking up their roles; regular training is held to update their knowledge. Our specialists form an essential part of the company's occupational safety and emergency response organization.

62 60 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Managerial staff also play a key role in the area of occupational safety. They are responsible for each member of their team and act as multipliers and role models. A range of occupational safety training courses is available to help them perform this task. Occupational health and safety at Wincor Nixdorf also involves every member of staff taking responsibility. To encourage and consolidate this aspiration, numerous regular working groups and dedicated project groups have been set up to realize and develop industrial safety at Wincor Nixdorf. Within the project groups, employees, managers, employee representatives, company doctors, and safety engineers plan and optimize new production processes with workplace safety in mind. Working groups comprising staff representatives, managerial employees, and experts also convene regularly at Wincor Nixdorf to work out strategies for ensuring a safe and healthy working environment. New facilities and work stations are surveyed by a Safety Expert (such as a safety engineer) and relevant measures are modified as necessary. To ensure consistently high standards, all relevant divisions are continually monitored by the persons responsible and reviewed by the Safety Expert; managers and employee representatives are involved under expert coordination. We are not aware of any violations of occupational health and safety regulations leading to fines during the reporting period. Injuries, Occupational Diseases, Lost Days, and Total Work-related Fatalities. Wincor Nixdorf s various business activities entail different hazard levels for our employees. Wherever possible, we try to avoid such risks or keep these to a minimum. When accidents occur, we not only investigate the causes but also take the opportunity to reinforce the safety measures taken, with the aim of preventing a recurrence. Primarily, local management is responsible for investigating and assessing any accidents that occur. To further improve this system, we are currently developing a reporting system to be used company-wide for accidents occurring either at work or in the course of work-related travel. Health management at Wincor Nixdorf goes beyond legal requirements on occupational health care and safety and supplements these regulations by means of a two-pronged approach: promoting good health and preventing disease, e.g., pre-examinations and medical consultation prior to foreign travel. In other words, we foster the physical, psychological, and social well-being of our employees, as well as their productivity, and also supply them with the personal resources they need to remain healthy. The company does not compile statistics on job-related illness; this is done by the official social security bodies. During the reporting period, there were no workrelated fatalities or fatalities resulting from job-related illnesses.

63 GRI Index Glossary 61 Diversity and Equal Opportunities. The company expects its employees to regulate their internal and external conduct such as not to damage the interests of the company. In particular, all employees are expected to treat colleagues and others outside the Group in a friendly, objective, and fair manner. No one shall be discriminated against, or receive preferential treatment, or be harassed, or be marginalized on account of gender, descent, race, religion, disability, or age. The dignity, personality rights, and privacy of employees must not be violated. Ongoing conflicts should be resolved by supervisors/ line managers and the personnel department competently and appropriately. Any discrimination or harassment of staff (e.g., sexual harassment or bullying) will not be tolerated. The interaction between colleagues should be characterized primarily by trust. Essentially, this is achieved through open communication and a high level of reliability with regard to all information provided. Both elements also serve as a basis for all decision-making. Employees should strive to contribute their own expertise as well as that of colleagues in decision-making processes. Employees according to gender 2012/ / /2011 Total 8,826 9,057 9,171 % Male Female Employees according to gender Germany 2012/ / /2011 Total 3,774 3,808 3,985 % Male Female Employees according to gender international 2012/ / /2011 Total 5,052 5,249 5,186 % Male Female We believe it is primarily the diversity of our employees which puts our company in a position to follow a sustainable corporate strategy based on the pillars of stability, productivity, and innovation. Our strategy rests on the conviction that our company benefits from the valuable knowledge derived from multicultural teams comprised of members from different backgrounds, and that this helps us to understand complex international markets more easily. The multifaceted talents and experience of Wincor Nixdorf s employees, our partners' employees, and customers create an environment in which ideas for innovative business processes and software solutions can thrive. Globally, the average age of Wincor Nixdorf employees fell slightly in fiscal 2012/13 to 41.4 (2011/12: 41.6 years). In Germany, the average age was 45.1 years; internationally, it was 38.7 years.

64 62 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Employment Conditions. Remuneration. Evaluating and Rewarding Work Fairly. We have enhanced our Performance Management tools with a view to motivating our staff to perform well over the long term and placing fair and reasonable value on their contribution. In determining remuneration levels for its employees, Wincor Nixdorf businesses around the world are guided by three criteria: role, performance, and market comparison. The objective is to compensate staff fairly and reasonably at all times within an acceptable economic framework. This applies to both the total income level defined in individual cases as well as the make-up of fixed and variable salary components and other payments in kind where applicable. Our international subsidiaries comply with all legal and otherwise mandatory provisions on minimum pay as well as additional collective arrangements such as wage settlements and company agreements. Role-based Remuneration. This form of remuneration is based on the work performed by and the responsibility delegated to the employee. To ensure standardized processes and improve comparability, Wincor Nixdorf has developed and introduced career models at local and global level. Within these models, requirements for task fulfillment and the necessary qualifications are described for clearly defined functions, according to the same method and applying the same procedure. These functions are linked to collective remuneration systems in parts of the global organization. In effect, this leads to differentiation in income according to the responsibility assigned to and accepted by the employee and that person's influence on the role and the work of his/her department. There is zero scope for the unjustified unequal treatment of men and women within a model of this kind. Performance-related Remuneration. Wincor Nixdorf is keen to recruit and promote highly motivated employees who see performance and commitment as a vital aspect of their role in terms of its attractiveness and as a means of consolidating their position and accessing transparent professional development opportunities. Nonetheless, Wincor Nixdorf is aware of the motivational power of remuneration. For this reason, the company structures its pay system in such a way that the performance of both individuals and the workforce as a whole is fairly rewarded. Individual performance is valued by means of (local) evaluation systems which are based on role-related requirements; in the case of global career models, expertise models are also applied. Another element is participation in the success of the company (or parts thereof) in the form of variable, target-based salary components. Thanks to a consistent system of target structures and key indicators, implemented in line with uniform principles, employees and managers around the world (including members of the Board of Directors) are assessed according to the same principle the business success of the company and participate jointly in the company's results. The amount and the proportion of variable income with regard to total remuneration also depend on the role and responsibility. Market-based Remuneration. Around the world, Wincor Nixdorf competes to attract the best employees in the sector. For this reason, we offer staff and applicants broadly attractive employment conditions, especially after taking account of additional non-cash elements (e.g., company cars, insurance schemes, and pension arrangements). Compensation packages of this kind are similarly based on roles and responsibilities as well as the value of particular functions within the career models. Conditions of employment are generally geared to local, sector-specific, and country-specific circumstances that Wincor Nixdorf assesses through remuneration comparisons and the benchmarks of reputable suppliers.

65 GRI Index Glossary 63 Attractive Overall Remuneration as a Prerequisite for Staff Retention. Satisfied people make motivated employees, who enable the company to hold its ground on global markets in the face of tough competition. Job satisfaction is the product of clear and transparent rules on remuneration drawn up on the basis of consistent principles and implemented fairly according to performance and the market. At the same time, we believe that the overall remuneration awarded to employees is not just a reward for work actually performed; it is also an expression of our appreciation of an employee's commitment. Working Hours. Wincor Nixdorf aims to offer its employees sound prospects for the future. However, this can only be possible where effective flexibility tools enable the company to react to downswings, fluctuations in sales volumes, and pressure on costs. The location and distribution of working hours provides one key flexibility component: in Germany, the main emphasis is on trust-based working-time models; no working-time accounts are kept, and there are no checks at all on working hours performed. We also make use of flexitime models, where staff can increase or reduce the balance of their working-time accounts over the course of a year. To varying degrees, both models provide scope for responding to fluctuating capacity requirements while helping to reconcile business and private interests. As such, they also serve to enhance the compatibility of family and professional life. Part-time work, which is particularly popular with female staff at present, is offered in various forms alongside semi-retirement plans for older employees. The solutions outlined take account of business needs and the personal interests of employees in equal measure.

66 64 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects HUMAN RIGHTS. Wincor Nixdorf is of the opinion that ensuring human rights are respected is an indispensable prerequisite for each and every business activity. To safeguard human rights throughout the entire Group, we employ two crucial instruments: the Code of Conduct, which applies to all employees throughout the entire company, and the Supplier Code of Conduct, applicable to all our suppliers. We examine all cases where there is a well-founded suspicion of human rights violations. Human Rights Aspects for Wincor Nixdorf. As regards internal conduct, the Code of Conduct applicable to Wincor Nixdorf contains a number of provisions that are based on human rights standards accepted around the globe. Prime examples include the equality principle and the prohibition of child and forced labor. Monitoring compliance with these regulations forms part of the inspections of the subsidiaries carried out by the Group's Internal Audit department. At regular intervals, the Group's Internal Audit department conducts inspections of all companies within the Group using a risk-based approach. During the reporting period, no relevant incidents were brought to our attention giving rise to complaints in relation to human rights violations or necessitating further investigation as part of formal inquiries. Equal Treatment. Wincor Nixdorf is committed to ensuring that no employee is discriminated against, receives preferential treatment, is harassed, or marginalized on account of gender, descent, race, origin, religion, disability, or age. The dignity, personality rights, and privacy of employees must not be violated (please refer to the section on Diversity and Equal Opportunities ). Child and Forced Labor. Wincor Nixdorf is aware of its social responsibility as determined by international social standards to all employees, male and female, in the countries in which it is represented. These include the prohibition of child labor and forced labor, the right to freedom of association and collective wage negotiations, and the introduction of humane working conditions. During the reporting period, we were not made aware of any significant incidents. Furthermore, given the nature of the industry in which we and our customers operate, as well as the qualifications generally required within this area, the risk of Wincor Nixdorf being exposed to incidents of child and forced labor is considered low. Human Rights Aspects for Suppliers. We have a duty to ensure that our products and services are generated in a supply chain which conforms to international standards. Therefore, we have laid out our corporate, social, and environmental expectations in our Wincor Nixdorf Supplier Code of Conduct. The Wincor Nixdorf Supplier Code of Conduct is based on the corresponding code of conduct in the electronics industry (Electronic Industry Citizenship Coalition). We expect all companies involved in our supply chain from whom we acquire either products and/or services to ensure this or a comparable code of conduct is upheld. When visiting suppliers, our Strategic Procurement team look for any clear breaches of the Supplier Code of Conduct. Any breaches identified by the team are raised directly on site with the supplier. We also expect our suppliers to ensure that any subcontractors they employ adhere fully to the Wincor Nixdorf Supplier Code of Conduct or to a set of equally stringent principles. In cases where even more stringent provisions under other rules or regulations apply, these take precedence over the Supplier Code of Conduct. No relevant cases of discrimination were identified during the reporting period; accordingly, no measures were taken.

67 GRI Index Glossary 65 Key elements of the Supplier Code of Conduct: Free choice of employment No child labor Working hours Remuneration and benefits Respectful treatment No discrimination Freedom of association Free Choice of Employment. In accordance with the Supplier Code of Conduct, our suppliers must respect the human rights of their employees and treat them with dignity and respect in accordance with the moral code of the international community. With regard to work and occupation, the following standards must be maintained: no supplier shall be party to forced labor, bonded labor, indentured labor, or involuntary prison work. All work shall be voluntary; employees should have the right to give notice subject to a reasonable deadline. Employees must not be required to hand over official ID, passports, or work permits as a precondition for entering into employment. Child Labor. Child labor is not permissible at any stage of the production process. A child shall be deemed as any person under the age of 15 (or 14 in countries where permitted by law), or any person below the age for compulsory schooling, or below the minimum age for entering into employment in the country in question. In this context, the highest age bracket shall apply accordingly. Legally certified vocational training programs that comply with all laws and regulations are supported. Employees under the age of 18 are not permitted to carry out any hazardous tasks. Remuneration and Benefits. The wages received by employees must comply with all applicable wage laws, particularly with those regulating minimum wages, overtime, and legally prescribed benefits. In accordance with the applicable national laws, the rate payable for overtime must be higher than the normal hourly rate. No payroll deductions may be made for disciplinary reasons. The basis on which employees are paid must be made available in good time in the form of a pay slip or similar statement. Respectful Treatment. Brutal and inhumane treatment or the threat of such treatment, including sexual harassment, sexual abuse, corporal punishment, mental or physical coercion, or verbal abuse, are prohibited. No Discrimination. Suppliers commit themselves to ensuring that employees are not harassed, bullied, or unlawfully discriminated against. Companies must not discriminate on account of race, skin color, age, gender, sexual orientation, nationality, disability, pregnancy, religion, political allegiance, trade union membership, or marital status, either when recruiting new employees or during employment (promotion, remuneration/ bonuses, access to training courses). In addition, neither employees nor potential employees may be subjected to any medical examination that could be open to discriminatory abuse. Working Hours.Studies on the labor conditions of different companies show a clear connection between the stress levels to which employees are subjected and reduced productivity, increased staff turnover, and higher incidences of workplace accidents and sickness. Weekly working hours must not exceed the legally prescribed maximum in the respective country.

68 66 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Freedom of Association. Open communication and direct dialog between employees and management are the most effective methods of clarifying questions concerning work or remuneration. Suppliers must respect the right of employees to meet freely and join forces, to become members of trade unions or refrain from becoming members, to appoint representatives, and to join works councils in accordance with national legislation. Employees must be able to communicate openly with the management about work conditions, without fear of reprisals, intimidation, or harassment. SOCIETY. Wincor Nixdorf is active in over 130 countries. In many of these, the company has been deeply rooted in the business and wider communities for decades in its capacity as an employer, client, and taxpayer. To promote the stability and prosperity of our social environment at local level, and to make sure that Wincor Nixdorf and its workforce are well assimilated into the wider region, our efforts are geared to the specific needs of the communities involved. For Wincor Nixdorf, responsible and lawful conduct is a prerequisite for quality, business success, and sustainable corporate development. The Board of Directors therefore 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 the Compliance Management System. 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.

69 GRI Index Glossary 67 Benefits, Bribery, Corruption, and Donations. Wincor Nixdorf supports international endeavors to prevent corruption. This means that we oppose any attempts at corruption in all areas of business and in all countries. This applies equally to work carried out internally and to dealings with our business partners. Our business activities shall always be based on a lawful and proper foundation. No employee, Group company, or subcontractor of Wincor Nixdorf may directly or indirectly (e.g., in the form of a non-repayable loan) offer or give monetary bribes, gifts, or other benefits, even in circumstances where such benefits might favor our economic interests. Any demands for bribes or other privileges, whether in the business or private arena, must be repudiated immediately and reported to the supervisor/ line manager. We will have no part in any transactions in which there are reasonable grounds to suspect bribery or corruption. Equally, no employee, Wincor Nixdorf company, or company with which we are collaborating may accept or demand bribes, either directly or indirectly. We will not tolerate any employees involved in cases of bribery. We expect any employee who becomes aware of such activities to immediately play an active part in uncovering and documenting the circumstances involved. Even outside of their work for the company, employees are not permitted to accept benefits that could have a lasting impact on their professional conduct. This does not include invitations or similar, provided they are appropriate in scope and do not influence the employee s professional objectivity. In our endeavors to maintain a transparent relationship with official bodies and government departments, government officials and public servants in particular must not be offered or given gratuities or other benefits. Donations must be authorized by the senior management of the Wincor Nixdorf entity and may only be given to charitable institutions. Our Code of Conduct specifies that we do not tolerate corruption. Compliance with the stipulations of the Code of Conduct is a component of the audits of subsidiary companies conducted by the Group's Internal Audit department. At regular intervals, the Group's Internal Audit department conducts inspections of all companies within the Group using a risk-based approach. We take the necessary steps in response to wellfounded reports of bribery or other forms of corruption. Our response to violations of the law and other regulations generally entails some form of sanction and measures to optimize the current processes and structures. Misconduct and other breaches of the Code of Conduct can lead to disciplinary measures. In serious cases of misconduct (or failure to act where required), these may entail dismissal as well as criminal and/or civil law proceedings. The action we take is designed as a specific response to individual cases of misconduct, the aim being to avoid any recurrence. As an integral component, our compliance training program includes anti-corruption seminars available as classroom-based or online sessions. The classroom sessions are normally attended by the local management as well as staff employed in sensitive areas (e.g. Sales, Purchasing, and Accounting). They then disseminate the knowledge acquired by training their staff at the respective workplaces. The online training is available to all Wincor Nixdorf employees on the company's intranet platform. The combination of these two approaches is intended to ensure that all Wincor Nixdorf employees align their behaviors to the principles of the Code of Conduct and other relevant guidelines. All employees are informed about our Code of Conduct when they join the company and undertake to comply with the Code of Conduct upon signing their contract of employment. In the period under review, more than 1,400 employees worldwide took part in Web-based training sessions.

70 68 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Fair Competition. Wincor Nixdorf is wholly committed to fair competition with other market participants and fair contractual negotiations with its business partners. We conduct our business by legally and ethically impeccable means and expect our business partners, suppliers, and customers to do the same. We will not enter into any agreements with our competitors, either directly or via our business partners, in respect of pricing, market share, capacity, subdivision of regional markets, or allocation of customer business, either in our daily operations or in the event of mutual strategic decisions. We also refrain from conducting informal discussions and reaching unwritten gentlemen s agreements relating to rules of conduct affecting competition. We endeavor to avoid conveying even the slightest impression of engaging in such practices. In particular, such agreements contrary to the provisions of our Code of Conduct cannot be justified even in the event of a crisis situation occurring through no fault of the parties involved. Accordingly, there must be no exchange of information with our competitors in respect of customer relations, prices, forthcoming price changes, or costs. In the same vein, calculations, capacities, and plans must not be disclosed. The obligation to secrecy shall continue to apply even after the employment contract has ended. Only in the event of the establishment of a joint venture may an exception to this principle be made, provided that an appropriate non-disclosure agreement is concluded. During the period under review there were no relevant instances of anti-competitive behavior. Compliance Relating to Social Responsibility. In the period covered by this report there were no relevant instances of fines resulting from infringements of statutory regulations. Information on legal disputes and claims for damages is provided in the annual report. PRODUCT RESPONSIBILITY. Management Approach. The aim of Wincor Nixdorf is to provide customers with products of the highest quality. This is why we continuously invest in improving our products and services. In doing so, we contribute to the process of securing both our own and our customers future and market competitiveness. We use state-of-the-art technology in every single innovation or improvement we make to entire systems as well as individual components and modules. The expertise and years or in some cases decades of experience of our employees are applied consistently to our production processes. But we also expect of our suppliers and partners that they provide the very latest expertise as part of our business relationship. The reliability of any software package depends entirely on stability of the applications. To ensure problems never arise, we put them through their paces as early as the initial development stage. We anticipate and resolve any potential implementation problems within the customer environment by running a series of targeted simulations. We also test every piece of software prior to installation and integration in an environment that corresponds with that of the customer concerned. We offer our customers the option of taking part in the tests themselves. Once the systems have been installed, we also provide our customers with ongoing support to ensure trouble-free operation. The services we offer for integrating and adapting our solutions to the customer's IT environment also help to provide optimum availability. These Professional Services are aimed at enhancing the effectiveness, security, and reliability of IT-based processes. System availability is maintained at maximum level via standardized service processes. This enables us to provide consistently high-quality service to customers whose businesses are expanding globally. Using our own specially developed eservices platform, we can identify potential malfunctions before they occur and therefore prevent them from happening in the first place (preventive maintenance) or rectify them via our

71 GRI Index Glossary 69 remote maintenance service. Should an outage occur despite these measures, our qualified technicians are at their disposal. On request, we can also assume complete responsibility for the operation of clearly defined IT infrastructures and business processes on customer premises. The relevant processes are based on ISO and thus comply with stringent international quality standards. We ensure compliance with the legal standards that apply to our products. To this end, we have set up a dedicated unit as part of our development organization. User Safety. Product safety has top priority throughout Wincor s product range. As part of its product liability obligations, Wincor Nixdorf has established an integrated management system to deal with the issue of product safety. This system specifies how to ensure compliance with product safety laws and/or in-house standards. The aim of product safety is to make sure that our products work according to their intended purpose and do not represent a risk to life, property, or the environment. Business processes optimized and coordinated with one another are the basic prerequisite for the quality and safety of the products developed, manufactured, and sold by Wincor Nixdorf. Principles of Product Liability. The management of our company is liable for product safety, and this responsibility cannot be delegated. Nevertheless, the management s personal liability risk may be reduced by means of organizational mechanisms such as embedding this risk into the management system. The integrated management system in place at Wincor Nixdorf defines both the organizational measures and the responsibilities and processes for product safety within the Group. Product Safety Provisions. The defined and described processes guarantee the flow of information to and from the management, thus ensuring the effectiveness of the system. Technical findings, standards, experience, and deficiencies, etc. are regularly evaluated and appropriate responses developed. In addition, we make sure that all potential cases of loss or damage are recorded and their causes analyzed. This helps us to prevent any recurrence of such events. Finally, all relevant data is documented. The effectiveness of the system is verified at regular intervals through internal audits and as part of reporting procedures. In the period under review there were no relevant instances of non-adherence to regulations pertaining to health and product safety. Product and Service Labeling. During the period under review, Wincor Nixdorf complied with all its legal and voluntary disclosure obligations for products and services. Measuring Customer Satisfaction. To identify various developments in good time, our customers requirements and suggestions throughout the entire product life cycle are systematically recorded via a number of channels. We aim to be the leading innovator in our sector. This is why we also work in concert with our customers in projects to develop innovative solutions time and time again. They underscore our commitment to be the first to launch new solutions within the market. We firmly believe that Wincor Nixdorf s achievements are inextricably linked to the success and satisfaction of our customers and to the close cooperation we enjoy with them.

72 70 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Marketing Communications. Adherence to Laws, Standards, and Voluntary Codes Related to Marketing Communications. To safeguard its trustworthiness and credibility, Wincor Nixdorf employs a Group-wide communication policy to discharge its responsibility to provide its stakeholders with consistent and objective information, and in doing so consistently meets its statutory obligations. In the period under review no relevant instances of non-compliance with statutory provisions or voluntary rules of conduct in respect of advertising came to our attention. Customer Privacy. Data Security. Documents and (electronic) storage media are kept under lock and key or in a secure place. This applies particularly to sensitive data concerning customers, employees, or trade secrets. Access to computers by third parties is prevented by regular password changes. Except for operational purposes, it is not permitted to make transcripts or copies of data files. No employee shall have the right to access information not relevant to his or her own activities. The confidentiality of postal correspondence and telecommunications is assured. All files and records, including electronic copies, are to be organized properly so that it is possible for a deputizing colleague to work with them at any time. Accordingly, all employees must ensure that they keep their files complete, clearly laid out, and easy to understand. Alongside traditional corporate assets, data and information have also become a key factor in a company s success. With the steady growth in electronic communication and networking, it has become increasingly important to protect these assets from loss or unauthorized access. It is our collective aim to support our business processes and corporate goals such as expanding our core business and core competencies, unlocking new growth potential, and driving business development worldwide by drawing on our product and service portfolio and by maintaining the appropriate levels of security. In this context, Wincor Nixdorf provides guidelines on security of information intended to help personnel achieve the required high standards of security in their day-to-day work, particularly when handling customer data and information. Compliance with security of information guarantees the confidentiality, availability, integrity, and authenticity of data and information in line with legislation and by means of organizational and technical mechanisms. Exceptions to the respective guidelines and regulations are only permitted subject to prior approval in writing by the Chief Information Security Officer (CISO). By adhering to security of information principles, Wincor Nixdorf is pursuing the following goals: To safeguard data and information, particularly customer and employee data, against risks and threats To protect our business processes and ensure uninterrupted business operations To mitigate risks to an acceptable level To avert material and non-material loss or damage to the company The purpose of all security measures is either to avert known or perceived risks, to reduce the likelihood of them occurring, or to transfer the risk to other parties in order to avoid damage to Wincor Nixdorf.

73 GRI Index Glossary 71 When the term security is used in conjunction with information, this means that the following attributes must be safeguarded: Confidentiality: ensuring that data and information are only accessible to authorized parties in the manner permitted. Integrity: intactness of information and data; in the case of electronic communications this means that the data have not been altered during transfer. Availability: ensuring that when needed by users, information and services can be retrieved and utilized at any time and at the intended speed. Authenticity: ensuring that the communicating party actually is who he/she claims to be, or that the information available has actually been compiled by the specified source. These attributes are jeopardized by a number of risks that have to be minimized by appropriate measures. The implementation of organizational and technical measures in line with statutory provisions to protect the confidentiality, availability, integrity, and authenticity of data and information influences the degree of information security at Wincor Nixdorf. These mechanisms are intended to maintain business operations, minimize factors detrimental to business, and maximize ROI and business opportunities. Due to the nature of its business activities, Wincor Nixdorf is subject to a number of German laws obliging the company to adhere to statutory data protection regulations, including: the Federal Data Protection Act (BDSG), the Data Protection Act of North-Rhine Westphalia (DSG NW), and the Telecommunications Act (TKD). The legal system of the Federal Republic of Germany protects the dignity of the individual inter alia by granting them the right to determine the privacy of their personal information ( informational self-determination ). This is understood as the right of the individual to determine the disclosure and use of his or her personal details. This applies particularly in respect of modern methods of information processing and the spread of information flows. The data protection legislation regulates the circumstances under which personal data can be collected, processed, and used. In case of any queries employees of Wincor Nixdorf may consult the company s data protection officer. Employees are required in particular to notify all processes in which personal data are collected, processed, and used. In addition, they are urged to report any direct violations of data protection. No such incidents were reported during the period under review. Compliance Relating to Product Responsibility. During the period under review there were no relevant instances of significant fines resulting from infringements of legislation in respect of the purchase and use of products. Insofar as they occur to a significant extent, financial penalties and non-monetary sanctions are reported in the annual report.

74 72 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Leading by Example. All of us employees and senior management alike have a duty to live out our social commitment through our actions. For thinking people with a sense of responsibility, this involves supporting socially beneficial organizations and campaigns. At Wincor Nixdorf, good causes are brought to the attention of senior management by employees, although our managers also contribute their own suggestions. The examples below are intended to show how these ideas can lead to a very concrete form of social outreach. Joining Forces to Support Flood Victims. Houses under water, entire regions flooded. During the last reporting year, Germany was hit by a severe weather front that triggered a state of emergency lasting several weeks along the Elbe and Danube rivers. Local people were unprepared for the resulting floods, which were on a scale last seen in The damage was estimated at several hundreds of millions of euros. Germany was shocked by the pictures that emerged from the worst affected regions. The scale of the disaster was only matched by people's willingness to help. That included the staff at Wincor Nixdorf, who quickly set up a fund for contributions to the aid organization Aktion Deutschland Hilft. Wincor Nixdorf employees based in Germany were encouraged to make voluntary donations based on the principle of everyone giving what they could afford. This committed contribution by the workforce was met with a promise from the company's senior management to double the amount raised as a further incentive for those involved in the campaign. Altogether, Wincor Nixdorf employees collected 33,440 as a result of the appeal. As promised, this was more than doubled to reach a total of 75,000, which was then handed over to an alliance of German aid organizations. The donations were used to supply food and drink to aid workers, to buy purification equipment, and to help fund the urgently needed pumps and machinery.

75 GRI Index Glossary 73 Cooperation with Disabled Persons' Workshop. Workshops for the disabled employ nearly 300,000 people with disabilities all over the country. Many of these workshops cooperate with businesses that offer disabled people a job. Wincor Nixdorf is one such company. Since 2007, we have worked with the charity Caritas Wohn- und Werkstätten, which is based in the Archbishopric of Paderborn. Although our cooperation was initially based on individual projects, it has since grown continually and is now well established. Thirty posts at Wincor Nixdorf's plant in Paderborn are reserved for employees from the disabled persons' workshop. In addition, we have set up roughly forty additional installation workplaces in and around Paderborn so that people with severely impaired mobility can still carry out a job. As well as offering posts to disabled people in this way, Wincor Nixdorf is particularly keen to support the workshops themselves and those who work in them.

76 74 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects GRI Index SR: Sustainability Report 2012/13; AR: Annual Report 2012/13; GRI Index: GRI Content Index (G3.1 disclosure) Organizational and Report Profile Reported Crossreference 1 Strategy and Analysis 1.1 Statement from senior management fully SR: p Description of key impacts, risks, and opportunities fully SR: p. 2 AR: p , Organizational Profile 2.1 Name of the organization fully SR: p. 4 AR: p Primary brands, products, and/or services fully SR: p.4, 7 11 AR: p Operational structure of the organization fully SR: p. 4 6, 30 AR: p nixdorf.com 2.4 Location of organization's headquarters fully SR: p. 4 AR: p Countries in which the organization operates fully SR: p. 4 AR: p nixdorf.com 2.6 Nature of ownership and legal form fully SR: p. 4, 30 AR: p Markets served fully SR: p AR: p Scale of the organization fully SR: p. 4 AR: p Significant changes regarding size, structure, or ownership fully SR: p. 4, AR: p Awards received fully nixdorf.com 3 Report Parameters 3.1 Reporting period fully SR: p Date of most recent previous report fully SR: p Reporting cycle fully SR: p Contact point for questions regarding the report fully SR: Imprint p Process for defining report content fully SR: p Boundary of the report fully SR: p Limitations on the scope or boundary of the report fully SR: p. 21, Basis for reporting fully SR: p Data measurement techniques and bases of calculations fully SR: p. 23

77 GRI Index Glossary Re-statements of information fully SR: p Changes from previous reporting periods fully SR: p in report parameters 3.12 GRI Index fully SR: p External assurance for the report fully SR: p Corporate Governance, Commitments, and Engagement 4.1 Governance structure fully SR: p. 4 6, 12 AR: p Independence of the Chair of the highest governance body fully SR: p. 4 6, 12 AR: p Number of independent members of the highest governance body fully SR: p. 4 5 AR: p Right of participation for employees and fully cf. GRI Index shareholders 4.5 Linkage between management compensation fully AR: p and the organization's sustainability performance 4.6 Processes in place to ensure conflicts of interest fully SR: p. 4 5, 12 are avoided 4.7 Expertise of the members of the highest fully AR: p governance body relating to economic, environmental and social topics 4.8 Statements of mission or values, codes of conduct, fully SR: p and principles relevant to sustainability 4.9 Procedures of the highest governance body for overseeing the organization's performance relating fully SR: p. 4 6, 12 AR: p to sustainability 4.10 Processes for evaluating the highest governance body's own performance in respect of sustainability fully AR: p , Observance of the precautionary principle fully AR: p , Endorsement of external activities relating to fully SR: p economic, environmental, and social aspects 4.13 Memberships in associations and fully SR: p advocacy organizations 4.14 Stakeholder groups engaged by the organization fully SR: p Basis for selection of stakeholders fully SR: p Approaches to stakeholder engagement fully SR: p Key topics for stakeholders fully SR: p

78 76 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects 5 Management Approach and Performance Indicators Economic Sustainability MA Management approach fully SR: S EC1 Direct economic value generated and distributed partially SR: S. 30 EC2 Financial implications of climate change fully SR: S. 30 AR: S EC3 Defined benefit plan obligations fully SR: S. 58 EC4 Financial assistance received from government fully SR: S. 30 EC5 Standard entry level wage compared to local fully SR: S minimum wage EC6 Policy, practices, and proportion of spending fully SR: S. 31 on local suppliers EC7 Local hiring and proportion of senior management fully SR: S. 31 hired from the local community EC8 Development and impact of investments partially SR: S. 31 provided for public benefit EC9 Indirect economic impacts fully SR: S. 30 AR: S Environmental Sustainability MA Management approach fully SR: S EN1 Materials used not reported SR: S EN2 Percentage of recycled materials used fully SR: S EN3 Direct energy consumption fully SR: S , 44 EN4 Indirect energy consumption fully SR: S , 44, EN5 Energy savings partially SR: S , 44, EN6 Energy-efficient products and services fully SR: S , 44, EN7 Initiatives to reduce indirect energy consumption partially SR: S , 44, EN8 Water consumption fully SR: S EN9 Water sources affected by withdrawal of water fully SR: S EN10 Volume of process water recycled and reused not reported SR: S , EN11 Land use in protected areas fully SR: S. 43 EN12 Impacts of products and services on protected fully SR: S. 43 areas and areas of high biodiversity EN13 Protected or restored natural habitats partially SR: S. 43 EN14 Strategies and actions for managing impacts on partially SR: S. 43 biodiversity EN15 Endangered species at sites of operation fully SR: S. 43 EN16 Direct and indirect greenhouse gas emissions fully SR: S , EN17 Other relevant indirect greenhouse gas emissions fully SR: S , 43 44

79 GRI Index Glossary 77 EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved partially SR: S , EN19 Emissions of ozone-depleting substances not reported SR: S. 44 EN20 NOx, SO2 and other significant emissions partially SR: S EN21 Total water discharge partially SR: S EN22 Volume of waste by type and disposal method partially SR: S EN23 Significant spills of pollutants fully SR: S. 45 EN24 Transported, imported, exported, fully SR: S. 45 or treated hazardous waste EN25 Impacts on biodiversity of water discharged fully SR: S. 42 EN26 Initiatives to mitigate environmental impacts of products partially SR: S , EN27 Percentage of products for which packaging fully SR: S materials were reclaimed EN28 Fines and non-monetary sanctions for non-compliance fully SR: S. 48 with environmental laws and regulations EN29 Environmental impacts of transporting products, materials and members of the workforce fully SR: S , EN30 Environmental protection expenditures not reported SR: S. 48 and investments Labor Practices and Decent Work Employees MA Managementansatz fully SR: S LA1 Total workforce by employment type and region partially SR: 57, 61 LA2 Staff turnover rate partially SR: 57, 61 LA3 Benefits provided solely to full-time employees not reported LA4 Percentage of employees covered by collective not reported bargaining agreements LA5 Notice periods regarding significant operational fully SR: S. 58 changes LA6 Percentage of total workforce represented partially SR: S in health and safety committees LA7 Injuries, occupational diseases, lost days, partially SR: S and total number of work-related fatalities LA8 Preventive care, counseling, and training fully SR: S LA9 Health and safety topics covered in formal fully SR: S agreements with trade unions LA10 Measures relating to education and training partially SR: S LA11 Skills management and lifelong learning partially SR: S LA12 Performance and career development reviews fully SR: S LA13 Diversity relating to workforce and partially SR: S. 61 governance bodies LA14 Ratio of remuneration of women to men fully SR: S LA15 Return to work after parental leave not reported

80 78 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Human Rights MA Management approach fully SR: S HR1 Human rights issues relating to investment partially SR: S agreements HR2 Screening of significant suppliers with regard to partially SR: S observance of human rights HR3 Employee training relating to human rights partially SR: S HR4 Incidents of discrimination and fully SR: S. 64, 68 corrective actions taken HR5 Operations in which the right to exercise freedom fully SR: S of association and collective bargaining may be at risk HR6 Operations with a risk of incidents of child labor fully SR: S HR7 Operations with a risk of incidents of forced or fully SR: S compulsory labor HR8 Training of security personnel concerning aspects not reported of human rights that are relevant to operations HR9 Incidents of violations involving rights not reported of indigenous people HR10 Review of human rights agreements fully SR: S HR11 Grievances relating to violation of human rights fully SR: S. 68 Society MA Management approach fully SR: S SO1 Impact of operations on local communities fully SR: S or regions SO2 Business units analyzed for risks related fully SR: S. 67 to corruption SO3 Employee training with regard fully SR: S. 67 to anti-corruption policies SO4 Incidents of corruption and actions taken fully SR: S. 67 SO5 Public policy positions and participation in public not reported policy development and lobbying SO6 Financial and in-kind contributions to political not reported parties and politicians SO7 Legal actions for anti-competitive behavior fully SR: S. 68 SO8 Fines for non-compliance with laws and regulations fully SR: S. 68 SO9 Operations with negative impacts on local fully cf. GRI Index communities SO10 Preventive measures relating to negative fully cf. GRI Index impacts on local communities Product Responsibility MA Management approach fully SR: S PR1 Assessment of life cycle stages with regard to health fully SR: S. 69 and product safety PR2 Non-compliance with regulations concerning health fully SR: S. 69 and product safety PR3 Statutory obligations concerning information on products and services fully SR: S. 69

81 GRI Index Glossary 79 PR4 Non-compliance with regulations and voluntary fully SR: S. 69 codes concerning product and service information PR5 Measurement of customer satisfaction fully SR: S. 69 PR6 Adherence to laws, standards, and voluntary codes fully SR: S. 70 related to marketing communications PR7 Non-compliance with regulations and voluntary fully SR: S. 70 codes concerning marketing communications PR8 Substantiated complaints regarding breaches fully SR: S of data protection PR9 Significant fines for non-compliance with laws and regulations concerning the purchase and use of products fully SR: S. 71

82 80 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects

83 GRI Index Glossary Wincor Nixdorf AG Sustainability Report 2012/

84 82 Statement by the President & CEO Company Profile Sustainability Management Economic Aspects Environmental Aspects Social Aspects Glossary (Application) Suite: A group of applications sold as a complete package. Wincor Nixdorf has developed the Retail Banking Solution Suite (ProClassic/Enterprise) for the banking industry and the TP Application Suite for its retail customers. Banking (Segment): The segment within Wincor Nixdorf dealing with the development, manufacture and sale of hardware, software and services for customers in the banking industry. Checkout Systems: Systems, made up of hardware and software, used for the process of scanning and payment of goods in retail outlets. Consulting: In most cases, consulting services are unrelated to a specific product and are offered when the client either lacks the required in-house expertise or the time. It is a general term that can be used to describe a range of professional activities. It is often used in the context of business or IT consulting. Cash Cycle Management: (see also Cash Management). Cash Recycling System: Cash machine that counterfeitchecks deposited banknotes and subsequently makes this cash available for withdrawals. Electronic Funds Transfer (EFT): This is the electronic exchange or transfer of money from one account to another. Generally, it focuses on paperless monetary transactions, where the money is transferred via Online-Banking or Online-Billing from the customer s account to the account of the supplier. Cash Systems: Cash systems include devices for dispensing or depositing cash as well as combined cash recycling systems for self-service and teller/cashier operation. Cash Trapping: Cash trapping is an alternative method to manipulate cash points. Therefore, the slot is dissected to let the drawn money stick to it. The customer does not notice this but thinks, the cash point is defective. After the client has left, the delinquent can remove the money from the slot. Managed Services: Standardized services associated with the operation of IT systems and ICT infrastructures within the retail and banking environment. mpos-concepts: Mobile Point of Sale. In contrast to the fixed cash point systems, mpos Cash functions can be used on mobile devices e.g. Tablets. Multivendor: Under the multivendor principle, the products of one supplier can be combined with the products of another supplier. Alternatively, the products of a third-party supplier that are already installed within a customer s system may be integrated into a specific software architecture.

85 GRI Index Glossary 83 Open-Source-Technology: Technologies based on Software, which has public source codes. Outsourcing: This term refers to the delegation of operational functions and duties to outside suppliers. Point-of-sale (POS) Systems: Checkout systems. Software Solutions: A software solution is software that is tailored to a customer s individual needs. It may comprise one or more software modules and is integrated into the customer s IT environment. Solution(s): A solution is a combination of at least two of the following: hardware, software and services/ consulting. Professional Services: These involve providing specialized services to businesses. Wincor Nixdorf offers consulting and integration services. The term also covers all services relating to the implementation of a solution. Switching: Switching constitutes the handling of cashless transactions between the merchants, banks and card holders. It implies three main parts: Authorization, Clearing and Settlement. Retail (Segment): The development, production, logistics, marketing and sale of hardware together with software and other services for Wincor Nixdorf s retail customers. Self-Checkout: This checkout procedure is executed at the checkout counter without a cashier. The customer scans the products and pays for them at the machine using cash or a debit or credit card. Self-service Systems: Equipment or devices that permit consumers or bank customers to execute transactions without the assistance of service or sales personnel or banking staff. Self-service products are, for example, ATMs, self-checkout systems or kiosk terminals.

86 Published by Wincor Nixdorf International GmbH Heinz-Nixdorf-Ring Paderborn Germany Contact: Georg Heukamp, Head of Management Systems/Sustainability Phone: +49 (0) / Fax: +49 (0) / [email protected] Wincor Nixdorf International GmbH. All rights reserved. Published in Germany, December 2013