\documentclass{article}
\usepackage[pdftex,active,tightpage]{preview}

\usepackage{tikz}
\usetikzlibrary{calc}

\begin{document}
\begin{preview}
% thanks to http://tex.stackexchange.com/a/75838/5645
\tikzset{XOR/.style={fill=black!15,draw,minimum size=13pt,circle,append after command={
        [shorten >=\pgflinewidth, shorten <=\pgflinewidth,]
        (\tikzlastnode.north) edge (\tikzlastnode.south)
        (\tikzlastnode.east) edge (\tikzlastnode.west)
        }
    }
}

\tikzstyle{encrypt}=[draw,fill=black!15,rectangle,minimum size=20pt,inner sep=0pt]
\begin{tikzpicture}
    \newcommand{\n}{3}
    \foreach \nr in {1, ..., \n}{
        \node (M\nr)            at (0,{(\n-\nr)*3}) {$C_\nr$};
        \node (x\nr)[XOR]       at (2,{(\n-\nr)*3}) {};
        \node (E\nr)[encrypt]   at (2,{(\n-\nr)*3+1}) {$E$};
        \node (K\nr)            at (2,{(\n-\nr)*3+2}) {$K$};
        \node (C\nr)            at (4,{(\n-\nr)*3}) {$M_\nr$};

        \draw[->,very thick] (M\nr) -- (x\nr);
        \draw[->,very thick] (x\nr) -- (C\nr);
        \draw[->,very thick] (K\nr) -- (E\nr);
        \draw[->,very thick] (E\nr) -- (x\nr);
    }

    \foreach \nr in {2, ..., \n}{
        \pgfmathtruncatemacro{\tmp}{\nr-1} 
        \draw[->,very thick] (2, {(\n-\tmp)*3+0.5}) -- (1, {(\n-\tmp)*3+0.5}) -- (1, {(\n-\nr)*3+1}) -- (E\nr);
    }

    \node (IV) at (0.5,{\n*3-2}) {$IV$};
    \draw[->, very thick] (IV) -- (E1);

    \node (Mx) at (0,-1) {$\vdots$};
    \node (xx) at (2,-1) {$\vdots$};
    \node (Ex) at (4,-1) {$\vdots$};
\end{tikzpicture}
\end{preview}
\end{document}