LISBON, Portugal — Paderborn, Germany-based Wincor Nixdorf International welcomed guests of its International Management Seminar, this year in Lisbon, with dinner and entertainment at the Páteo Alfacinha, a venue that offers visitors a taste of 20th-century Portugal.
Wincor Nixdorf’s 200 or so guests, representing 34 countries, were entertained by local students, who sang and performed in traditional Portuguese style.
But today it was all business, with a morning announcement that the once-third-ranked global ATM deployer has now assumed the No. 2 position, trailing only Dayton, Ohio’s NCR Corp., according to 2007 shipment figures tracked by England’s Retail Banking Research Ltd.
RBR reports that Wincor Nixdorf increased its global ATM deliveries from 18 percent in 2006 to 21 percent in 2007.
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Attendees spent the evening at Lisbon’s Pateo Alfacinha, an establishment known for its Portuguese flare. |
“Moving up to the No. 2 slot is yet another milestone in our success story,” said Stefan Auerbach, Wincor Nixdorf’s executive vice president of banking as well as a member of the company’s board of directors. “Our portfolio, as a provider of integrated hardware, software, and services, strengthens our position as a leading IT-solution supplier in the international retail-banking business.”
Auerbach opened the day’s events with a presentation outlining Wincor Nixdorf’s growth. In 1994, Wincor Nixdorf was No. 12 in global ATM shipments. By 2000, the company had moved to the No. 3 slot.
Auerbach attributes Wincor Nixdorf’s growth to specific strategies in key markets, including the United States and Asia — two markets where Wincor Nixdorf has focused much attention over the last three years.
And the proof is in numbers.
Wincor Nixdorf’s first-half results for the 2007/2008 fiscal year are coming in higher than forecasted. From the first half of FY 2006/2007, the company’s business in the Americas is up 29 percent; in Asia-Pacific and Africa, it’s up 32 percent; and in Europe, it’s up 9 percent.
Only the company’s business in Germany saw a decrease, falling 7 percent from the same period last year.
“Despite the sub prime crisis, which is being felt in Germany and throughout the world, we continue to see growth in banking,” Auerbach said. “The good news is that the banking business worldwide is expected to grow by a multiple of four over the next 15 years, and we are positioning ourselves for the growth.”
Acting global, thinking local has contributed to the company’s growth, Auerbach says, and likely led to the 11 additional international participants Wincor Nixdorf welcomed to its event this year.
“Branch and ATM channels in every big, established market remain the strongest banking touchpoints,” he said. “And we developed a global strategy to meet those needs, because we understood that we had to be more global. So we have developed strong partnerships and service relationships in all of our markets.”
Organic growth is expected to remain the company’s strategy, said one Wincor Nixdorf spokesman, despite some rumors that Wincor Nixdorf could be in the running for an acquisition of the cash-systems business operated by England-based De La Rue.
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The view from the Pateo Alfacinha. |
Growth through acquisition has not been a method Wincor Nixdorf has had success with in the past. Internal growth, on the other hand, is working.
Since FY 1999/2000, when 51 percent of Wincor Nixdorf’s business was based in Germany, the company has increased its international penetration across Europe, Asia-Pacific and the Americas.
In FY ’99/’00, only 38 percent of Wincor Nixdorf’s business came from European countries beyond Germany. Today the percentage is 52.
In Asia/Pacific, the business percentage in ’99/’00 was 7 — today it is 13 percent. And in the Americas, only 4 percent of the company’s business could be attributed to the region in ’99/’00 — today the breakdown is 8 percent.
In fact, over the next few months, Wincor Nixdorf has announced plans to install some 7,000 ATMs in Asia, namely because of a strong partnership with First Data Corp. in Australia.
All three regions represent key markets, but so does Africa, where Nigeria is quickly becoming one of Wincor Nixdorf’s most-prized markets, Auerbach said.
