Wincor Has Carved Out 30% Market Share In Russia

Implications: Russia is the largest ATM market in the Central & Eastern Europe region with over 37,000 ATMs deployed. In 2006, Russia experienced an increase of 32% in installed ATMs compared to 2005. Russia, Ukraine and Poland represent two-thirds of the region's installed ATMs. For the last six years Russia has realized the greatest absolute growth in its ATM base and deployers added more than 8,800 new ATMs in 2006, which is over half the growth for the entire region. Growth in ATM deployments is attributable to a large increase in the number of cards issued in both Russia and the Ukraine. Cash withdrawals remain the dominant type of transaction and ATM deployers ensure adequate ATMs are installed. More than three billion cash withdrawals were made in Central & Eastern Europe in 2006 and almost one-third of those withdrawals were made at ATMs in Russia and valued at $980 million. Off-premise ATMs out number branch ATMs in the region and 69% of Russia's ATMs are installed off-premise.

Analysis: Wincor has setup its own subsidiary in Russia to offer customers the convenience of banking 24/7 without the restrictions of branch operating hours and to take advantage of growth opportunities in the region. Wincor is the 2nd largest ATM OEM in Central & Eastern Europe with a 30% market share. Wincor has seen its market share grow from 12% to 30% and now outpaces Diebold in the region.

1.  Wincor has carved out its niche and market share with ATM hardware deployments, POS installations and software and services to financial institutions and merchants in the region

2.  Russia's growth and economic conditions has also improved due to increased competition in the region following EU accession and foreign investors have also boosted growth in Russia

Take-away: The drop in the price of ATM technology, cost cutting efforts with financial institutions, competition and customer demand for access and convenience is driving growth in Russia.  Retail banks and merchants in Russia are entering a phase of competition among themselves, which could provide Wincor with potential growth opportunities in both the ATM and POS industry and Wincor has positioned itself to take advantage of these growth opportunities.