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WashTec AG Annual Report 2025
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Annual Report 2025
Smart solutions for a bright future
WashTec
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WashTec // Highlights
Management Report
Financial Statements
Further information
New record revenue of €498.6m with further increase in EBIT margin to 9.8%
| Q1-Q4 | Jan 1 to Dec 31, 2025 | Jan 1 to Dec 31, 2024 | Change | ||
|---|---|---|---|---|---|
| absolute | in % | ||||
| Revenue | €m | 498.6 | 476.9 | 21.7 | 4.6 |
| EBIT | €m | 48.9 | 45.5 | 3.4 | 7.5 |
| EBIT margin | % | 9.8 | 9.5 | 30 bps | - |
| Net income | €m | 30.7 | 31.0 | -0.3 | -1.0 |
| Weighted average number of shares | units | 13,379,578 | 13,382,324 | -2,746 | 0.0 |
| Earnings per share | € | 2.29 | 2.32 | -0.03 | -1.3 |
| Free cash flow | €m | 41.9 | 39.5 | 2.4 | 6.1 |
| Net cash outflow from investing activities | €m | -6.8 | -10.2 | 3.4 | 33.3 |
| Equity ratio | % | 28.6 | 31.7 | -310 bps | - |
| ROCE | % | 24.8 | 23.6 | 120 bps | - |
| Employees at reporting date | persons | 1,861 | 1,770 | 91 | 5.1 |
bp: basis point (1/100th of a percentage point)
Figures in this report are rounded. Because of this, individual figures may not add up to the stated totals and percentages may not precisely correspond to the absolute figures they relate to.
Revenue up on prior year
WashTec generated record revenue of €498.6m in fiscal year 2025, up 4.6% on the prior year (€476.9m). At constant exchange rates, revenue rose by €27.0m to €503.9m (prior year: €476.9m) and would thus exceed €500m for the first time. This positive performance is due to the Europe and other segment, which increased revenue across all business lines. Revenue in the North America segment was down year on year due to lower unit sales of equipment, while service and consumables revenue was up on the prior year.
EBIT above prior year
EBIT increased disproportionately by 7.5% in fiscal year 2025 to €48.9m (prior year: €45.5m). The EBIT margin was higher than in the prior year, at 9.8% (prior year: 9.5%). The increase in EBIT is attributable to the performance of the Europe and other segment.
Free cash flow slightly above prior year
At €41.9m, the WashTec Group's free cash flow was up slightly by 6.1% on the prior year (€39.5m). It should be noted that the prior year included a one-off effect from the reimbursement of investment income tax in the amount of €10.6m. Adjusted for this item, the increase was 45.0%.
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WashTec // Highlights
Management Report
Financial Statements
Further information
Fourth-quarter revenue slightly down on exceptionally strong prior-year quarter; EBIT margin at 11.8%
| Q4 | Q4 2025 | Q4 2024 | Change | ||
|---|---|---|---|---|---|
| absolute | in % | ||||
| Revenue | €m | 140.4 | 142.6 | -2.2 | -1.5 |
| EBIT | €m | 16.5 | 17.9 | -1.4 | -7.8 |
| EBIT margin | % | 11.8 | 12.6 | -80 bps | - |
| Net income | €m | 9.7 | 13.7 | -4.0 | -29.2 |
| Weighted average number of shares | units | 13,371,340 | 13,382,324 | -10,984 | -0.1 |
| Earnings per share | € | 0.72 | 1.02 | -0.3 | -29.4 |
bp: basis point (1/100th of a percentage point)
Fourth-quarter revenue slightly down on prior year
WashTec generated revenue of €140.4m in the fourth quarter, a slight 1.5% down on the prior-year quarter, which was the second strongest in the Company's history (€142.6m). While the Europe and other segment performed positively with growth of 1.8%, the North America segment continued to be affected in the fourth quarter by lower unit sales of equipment.
Fourth-quarter EBIT and EBIT margin down on prior year
EBIT fell to €16.5m in the fourth quarter (prior year: €17.9m), partly due to revenue. The EBIT margin, at 11.8% (prior year: 12.6%), was lower than in the prior-year quarter.
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WashTec//Contents
Management Report
Financial Statements
Further information
Contents
WashTec
Report of the Management Board 7
Members of the Management Board 10
Report of the Supervisory Board 11
The WashTec Share 17
Combined Management Report of WashTec AG and the Group
2025 at a glance 21
General information about the Group 22
Report on economic position 30
Report on subsequent events 45
Outlook, opportunities and risk report 46
Internal control system and risk management system 58
Risk reporting in relation to the use of financial instruments 59
Takeover-related disclosures 60
Corporate governance statement 63
Consolidated sustainability statement 76
Consolidated Financial Statements of WashTec AG
Consolidated Income Statement 163
Consolidated Statement of Comprehensive Income 164
Consolidated Balance Sheet 165
Consolidated Statements of Changes in Equity 167
Consolidated Cash Flow Statement 168
Notes to the Consolidated Financial Statements 169
Responsibility statement 222
Further information
Independent Auditor's Report 224
Assurance report of the independent German Public Auditor on a limited assurance engagement in relation to the Consolidated Sustainability Statement 231
WashTec AG Annual Financial Statements (HGB Short Version) 235
Glossary 237
WashTec worldwide 240
Group Level Key Performance Indicators (KPIs) 2021 through 2025 241
Financial Calendar, Publishing Information, Contact 242
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WashTec
Management Report
Financial Statements
Further information
WashTec
Report of the Management Board ... 7
Members of the Management Board ... 10
Report of the Supervisory Board ... 11
The WashTec Share ... 17
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WashTec // Portfolio
Management Report
Financial Statements
Further information
Full service all around sustainable carwash
Services
Wash tunnels
Gantry car wash
Water recycling
Wash chemicals
Self-service
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WashTec / Report of the Management Board
Management Report
Financial Statements
Further information
Report of the Management Board
Dear Shareholders, Business Partners and Employees
For the WashTec Group, 2025 was a year of sustainable transformation – characterized by strategic clarity, technological advancement and strong cultural focus on our company as a solution provider. This placed the emphasis on implementing our four value propositions – commercial success, quality and sustainability, with convenience and ease of use – and on our personal and interactive cultural values. Building on the progress made in previous years, we further consolidated our position as the world's leading provider of professional vehicle washing solutions and set the course for future profitable growth.
We already laid vital groundwork in 2024, investing in digital innovations, sustainable technologies and a far more connected service and digital business as the foundation for our onward development. In 2025, we maintained this momentum by connecting more wash sites to our digital platform. This will significantly accelerate sales of our digital products.
Despite the challenging general economic conditions, WashTec brought fiscal year 2025 to a successful close. Revenue increased by 4.6% year on year to a new record of €498.6m. This means we achieved the target of a mid-single-digit percentage increase in revenue as communicated in the Annual Report 2024. At constant exchange rates, revenue exceeded the €500m mark for the first time in the Company's history.
We are especially pleased to report that we increased performance across all business lines compared to the prior year. Revenue in the Equipment business line was a slight 2.5% up on the prior year. Strong growth momentum in the Europe and other segment, and especially in Germany and France, more than offset the slow performance in the North America segment. WashTec increased revenue in the Service business line by 7.3%. This was due among other things to process optimization, digital integration and increased capacity. At the end of December, WashTec had over 13,500 units connected online – an increase of around 19% on the end of fiscal year 2024. Revenue in the Consumables business line also developed positively, rising by 7.6%. Over the year to December, the percentage of total revenue accounted for by recurring Service and Consumables revenue consequently rose to 45.1% (prior year: 43.9%).
WashTec once again delivered on its promise of profitable growth in fiscal year 2025. EBIT rose disproportionately in relation to revenue by 7.5% to €48.9m (prior year: €45.5m), with an EBIT margin of 9.8% (prior year: 9.5%). This increase was mainly due to the very healthy performance in the Europe and other segment.
Another key earnings indicator, ROCE, also developed positively in the reporting year. With an increase of 1.2 percentage points, ROCE now stands at 24.8%.
Based on this positive performance, WashTec was able for the first time in the reporting year to provide an outlook for future revenue and earnings goals extending more than one year ahead. In our inaugural Capital Market Webcast, a new virtual format in which we present key aspects of our business model to current and prospective investors, WashTec announced the goal of 5% average annual growth through to 2027 and an EBIT margin in 2027 of between 12% and 14%.
Furthermore, WashTec launched a share buyback program in 2025 to repurchase a maximum of 100,000 shares for a maximum of €5.0m between November 2025 and no later than May 2026.
These positive prospects for the future are supported by another outstanding milestone in 2025: The market launch of our new SmartCare Connect rollover generation in May 2025.
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WashTec / Report of the Management Board
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Financial Statements
Further information
This heralds a new era of vehicle washing: fully connected, data-based, efficient and with even better wash quality. SmartCare Connect lays the foundation for smart process control, maximum transparency for operators and new digital business models along the entire customer journey.
Through our strategic partnerships, we consistently built on our digitalization goals in 2025. Over 200 sites connected to the WashNow smart service and a clear roadmap are shaping a pioneering digital ecosystem. For end customers, this means greater automation, higher efficiency, noticeable improvements in ease of use – and ultimately higher sales for carwash operators.
A key driver for quality, profitability and recurring revenue is our Consumables business line. Consumables and application technology have been among our core competencies since we integrated AUWA in 2008. In 2025, we further developed our portfolio with innovation- and data-driven applications – including solutions such as Chem-in-a-Box, optimized dispensing, and digital transparency on consumption – developed in-house by our R&D department, made in Europe, and precisely tailored to our systems. This underscores our role as a solution provider and systematically boosts performance for carwash operators.
We have also moved forward operationally, with further lasting improvements in performance capabilities and competitiveness. This has been achieved by systematically enhancing our global organization, reinforcing our matrix structure, appointing our top performers to key positions, optimizing processes and developing our Augsburg site into a future competence center. These steps contribute directly to our strategic priorities: Equipment as an en
abler, global service excellence as a quality promise, development of digital business models, sustainable chemicals and focus on Europe and North America.
Furthermore, we have made significant progress in refining our corporate strategy and value architecture, which we have been communicating since May 2025. These form the cultural foundation of our transformation, shaping our actions with the guiding principles of innovation, responsibility, transparency, ambition and customer centricity. Building on this foundation, we are currently refining and aligning functional, segment and business line strategies to optimize and implement global processes. This is another element in reducing complexity in our organization.
Last but not least, 2025 was a year of successful product launches and the strengthening of our service business. The strong market response to SmartCare Connect and our other new digital products, as well as the measurable improvements in interoperation between equipment, consumables and service, show that we are better positioned than ever before, both technologically and organizationally. We plan the launch of yet another world first in 2026, this time in a combination of jet wash and consumables. Here, too, we look forward to the market response.
Our programs and projects are starting to pay off for our organization and to deliver lasting reductions in complexity. The Augsburg site analysis, with the clear-cut goal of developing and transforming the site into a competence center with the focus on modular final stage production, is currently underway and will be completed in 2026. Work is progressing on
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WashTec//Report of the Management Board
Management Report
Financial Statements
Further information
process optimizations in areas such as lead to production and installation, and these will contribute significantly in the future to reducing complexity and thus to the profit margin.
I would like to take this opportunity to thank our employees worldwide. Their commitment, their expertise and their passion for our mission are what make WashTec's success possible. I would also like to thank our customers and business partners who accompany us with their trust, constructive feedback and collaborative projects.
We are heading into 2026 with confidence, clarity and strong momentum – ready to actively shape the future of professional vehicle washing. We look forward to continuing with you on this journey.
Thank you very much for your trust and support.
Michael Drolshagen
CEO/CTO/Chairman of the Management Board
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WashTec // Members of the Management Board
Management Report
Financial Statements
Further information
Members of the Management Board
Michael Drolshagen (*1971)
CEO/CTO/Chairman of the Management Board
Areas: Corporate culture, communication & mission statement, Human Resources, Production, Sustainability*, R&D, Quality, Service, AUMA-Chemie GmbH
Michael Drolshagen is an industrial engineer. He began his career at Porsche in 2000 at the Weissach Development Centre, from where he moved to the Technical Competence Centre in Zuffenhausen and then spent several years as General Manager responsible for production preparation. As Vice President After Sales, he was then responsible for the global aftermarket of the car manufacturer Porsche and reported directly to the Executive Board of Porsche AG. Most recently, Mr. Drolshagen was CEO of thyssenkrupp Presta Aktiengesellschaft.
Michael Drolshagen has been a member of the Management Board and Chairman of the Management Board of WashTec AG since May 2024.
Andreas Pabst (*1973)
CFO/Member of the Management Board
Areas: Finance/Controlling, IT, Purchasing, Investor Relations, Legal and Compliance, Sustainability*, Risk Management, Internal Audit, Insurance, WashTec Financial Services GmbH
Andreas Pabst holds a degree in business administration and has passed the tax advisor examination. His professional career began at KPMG and led to KUKA via various positions in the accounting departments of listed companies. There, he has held various commercial positions of increasing responsibility and was Group CFO from 2018 to 2021. Most recently, Mr. Pabst worked for Midea.
Since October 2022, Andreas Pabst is a member of the Board of Management of WashTec AG.
Sebastian Kutz (*1979)
CSO/Member of the Management Board
Areas: Sales, Key Account Management, Marketing, Business units/product management, WashTec Carwash Management GmbH
Sebastian Kutz has a degree in business administration. After holding various positions in national and international sales and marketing at RATIONAL AG until 2019, became Executive Vice President Sales and Service DACH at WashTec.
Sebastian Kutz has been a member of the Management Board of WashTec AG since March 2023.
- The sustainability portfolio was assigned to Mr. Drolshagen for the period from January 1, 2025 to March 31, 2025 and has been the responsibility of Mr. Pabst since April 1, 2025.
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WashTec / Report of the Supervisory Board
Management Report
Financial Statements
Further information
Report of the Supervisory Board
Ulrich Bellgardt
Chairman of the Supervisory Board
Ladies and Gentlemen,
A year ago, in the Report of the Supervisory Board for the Annual Report 2024, we hoped it was the last time we would have to start by saying the past fiscal year was heavily influenced by external factors. Unfortunately, that expectation has not been met.
Last year brought a continuation of the Russian war of aggression against Ukraine, with all the associated losses and costs, and of the retreat from the rule-based global economic order. As spheres of interest and influence shift around entrenched power structures, increasing multipolarity is having a noticeable negative impact on liberal and democratic systems.
Economic growth is weak in Europe and especially in Germany. Businesses saw wage costs and welfare contributions rise in 2025 and they will go on rising in 2026. The high cost of energy and the expense of navigating a complex and sometimes chaotic regulatory environment make it considerably more difficult to do business successfully in Germany.
Against this backdrop, the WashTec Group did very well in fiscal year 2025, particularly in Europe. We have pushed ahead with our strategic transformation from a machinery manufacturer to a provider of sustainable solutions for vehicle washing. And we have maintained our focus on operational excellence. This enabled us to improve profitability in fiscal year 2025 and generate our highest ever annual revenue. Never before have we been able to employ more people – true to our word: "Smart Solutions for a Bright Future."
These successes in such a difficult environment are largely due to our employees. In addition to their everyday work, they have contributed with passion to WashTec's strategic development.
The Supervisory Board would like to thank the Management Board and all employees for their commitment.
Work of the Supervisory Board
During the reporting year, the Supervisory Board adhered diligently and conscientiously to the responsibilities imposed on it by law, the Company's Articles of Association and the Board's own internal rules of procedure. The Supervisory Board was directly involved in all decisions of fundamental importance to the Company. It regularly obtained updates on the condition of the Group throughout fiscal year 2025.
The Supervisory Board supervised the managerial activities of the Management Board of WashTec AG. This work was based on timely written and verbal reportings by the Management Board to the Supervisory Board. The Management Board reported regularly each month in writing to the Supervisory Board about the development of the business. The Supervisory Board extensively discussed transactions of importance to the Company on the basis of the reports issued by the Management Board. As needed, the Supervisory Board also requested additional reports from the Management Board and inspected other relevant Company documentation. Any deviation of the actual development of the business from plans and targets was explained to the Supervisory Board in detail and examined by the Supervisory Board based on the documents presented. During the reporting period, the Supervisory Board dealt with the Group's strategic issues on an ongoing and in-depth basis; these were a fixed item on the agenda of the meetings and were discussed regularly with the Management Board as part of an ongoing strategic dialogue.
The Supervisory Board voted on all reports and draft resolutions submitted by the Management Board wherever required by law, the Company's Articles of Association or the rules of procedure, after thorough examination and discussion. Beyond the extensive work conducted during the Supervisory Board meetings, the Chairman of the Supervisory Board maintained constant contact with the Management Board and consulted between Supervisory Board meetings in numerous one-on-one discussions with the Management Board on the strategy, planning, business development, risk situation, risk management and compli
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ance of the Company. The remaining Supervisory Board members also exchanged information with the Management Board outside of meetings on specific topics.
In fiscal year 2025, the plenary Supervisory Board held a total of ten meetings (five in-person meetings and five hybrid meetings, i.e. in-person with virtual attendance option).
At least one Supervisory Board meeting was held each quarter, supplemented by committee meetings. In addition, various resolutions were adopted outside of meetings by circulation. In plenary meetings, the committee chairpersons regularly informed the Supervisory Board about the work of the committees. The activities of the committees are covered separately later in this report. All members of the Supervisory Board and the Management Board additionally convened for a two-day strategy workshop. The Supervisory Board also regularly met without the Management Board.
Alongside Management Board and Supervisory Board matters, notable topics of regular Supervisory Board consultations included market trends, the competitive situation, product development, the development of revenue, earnings and human resources, finances, capital allocation, the main Group companies, the risk management system, the sustainability targets and sustainability reporting, internal audit, and the strategic orientation and development of the WashTec Group. The Management Board reported regularly and comprehensively to the Supervisory Board about corporate planning, the course of business, the risk situation, strategic development and the current situation of the Group. As a result, the Supervisory Board was able to obtain a detailed insight into all important business events and developments in the WashTec Group at all times.
Furthermore, the Supervisory Board examined transactions and actions of the Management Board requiring approval and decided upon the granting of such approval. The current business situation and the Company's financial performance, financial position and cash flows were discussed on a regular basis in relation to budgeted figures.
The Supervisory Board also addressed succession planning for the Management Board in the reporting year. As part of this, the Supervisory Board resolved in May 2025 to reappoint
Mr. Sebastian Kutz, whose term of office runs until February 28, 2026, for a further term of office as the Company's Chief Sales Officer (cso).
The Supervisory Board actively monitored the implementation of the csrd. As of 2025 reporting period, this has still not been transposed into German law. The Company continued to prepare for the future requirements and has compiled a Group sustainability statement for the 2025 financial year in accordance with the esrs. The Supervisory Board has reviewed and approved these.
In addition to the above, specific topics discussed at meetings comprised the following:
- Discussion, audit and adoption of the annual and consolidated financial statements, the combined management report and the combined non-financial statement of WashTec AG for fiscal year 2024 (first quarter)
- Use of net profit (first quarter)
- Resolution on the agenda for the Annual General Meeting (first quarter)
- Strategy workshop (second quarter)
- Consultation on the quarterly statements (second and fourth quarters)
- Consultation on the half-year report (third quarter)
- Supervisory Board matters (ongoing)
- Management Board matters (ongoing)
- Share buyback program 2025 (third and fourth quarter)
- Sales and marketing strategies and projects; global service (ongoing)
- Cybersecurity (ongoing)
- Artificial intelligence (second and fourth quarter)
- Status, strategy and processes in North America (ongoing)
- Annual planning for 2026 and medium-term planning (third and fourth quarter)
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WashTec//Report of the Supervisory Board
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13
Key topics at the March 20, 2026 meeting for adoption of the financial statements comprised discussion of the annual financial statements of WashTec AG, of the consolidated financial statements for fiscal year 2025 together with adoption and approval of the annual and consolidated financial statements, and of the combined management report. The Supervisory Board also addressed the Remuneration Report for fiscal year 2025.
Composition of the Supervisory Board
In accordance with the Articles of Association of WashTec AG, the Supervisory Board consists of six members elected by the Annual General Meeting. The Chairman of the Supervisory Board is Mr. Ulrich Bellgardt and the Deputy Chairman of the Supervisory Board is Mr. Peter Wiedemann.
In December 2024, Dr. Alexander Selent notified the Supervisory Board and the Chairman of the Supervisory Board in writing that he would be resigning from the Supervisory Board for personal reasons with effect from the end of the Annual General Meeting in 2025. In light of this, Ms. Susanne Heckelsberger was elected as his successor at the 2025 Annual General Meeting. Ms. Heckelsberger has been a member of the company's Supervisory Board and Chairwoman of the Audit Committee since May 13, 2025. Also at the 2025 Annual General Meeting, Ms. Sabine Simeon Aissaoui was elected a member of the Company's Supervisory Board with effect from June 4, 2025.
In February 2026, Dr. Hans Liebler informed the Management Board and the Chairman of the Supervisory Board in writing that he would be stepping down from the Supervisory Board for personal reasons with effect from the end of the 2026 Annual General Meeting. Accordingly, a resolution on the election of a new Supervisory Board member is to be passed at the 2026 Annual General Meeting. The Supervisory Board will submit a nomination for his successor to the 2026 Annual General Meeting based on the recommendation of the Personnel and Nomination Committee.
Report on the work of the committees
In the reporting year, the Supervisory Board had an Audit Committee and a Personnel and Nomination Committee, primarily serving the purpose of preparing Supervisory Board meetings and resolutions of the plenary Supervisory Board. Within the bounds laid down by mandatory statutory provisions, the committees may also be delegated decision-making powers. The composition of the committees is shown on page 68.
A brief overview of the work performed by the committees during the reporting year is provided in the following.
The Audit Committee convened six times in the fiscal year under review. Four meetings of the committee were held in person, while one was held as a virtual meeting and one as a hybrid meeting. Four meetings were held in the presence of the auditor. The Committee primarily consulted on the annual financial statements of WashTec AG and the consolidated financial statements along with the combined management report, the consolidated sustainability statement, the remuneration report, supervision of the financial reporting process and the effectiveness of the internal control system, the risk management system, the work of Internal Audit and capital allocation. The Audit Committee also consulted the share buyback program.
It also defined the focal points of the audit for the reporting year, issued the audit engagement to the auditor, addressed new accounting and reporting requirements (EU taxonomy and the csrd) and consulted on compliance matters. Without exception, the Audit Committee discussed the Group's quarterly reports and half-year financial report in detail prior to publication. Without exception, the Audit Committee discussed the Group's quarterly reports and half-year financial report in detail prior to publication.
The Personnel and Nomination Committee met twice during the reporting year. These meetings were held in person. Key topics at the meetings included the extension of Mr. Kutz's Management Board contract, Management Board and Supervisory Board remuneration, long-term succession planning, the resignation of Dr. Selent, the associated nomination of Ms. Heckelsberger as his successor, and the nomination of Ms. Simeon Aissaoui as an additional member of the Supervisory Board.
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Individualized disclosure of meeting attendance
Members' attendance at the meetings of the Supervisory Board and its committees was 99% in fiscal year 2025. The attendance of the members of the Supervisory Board at the meetings of the Supervisory Board and of the committees in fiscal year 2025 is disclosed on an individual basis in the following:
| Supervisory Board | Audit Committee | Personnel and Nomination Committee | ||||
|---|---|---|---|---|---|---|
| Meetings attended/total number of meetings | Number | in % | Number | in % | Number | in % |
| Ulrich Bellgardt (Chairman) | 10/10 | 100% | 2/2 | 100% | ||
| Susanne Heckelsberger² | 6/6 | 100% | 3/3 | 100% | ||
| Dr. Hans Liebler | 9/10 | 90% | 6/6 | 100% | ||
| Heinrich von Portatius | 10/10 | 100% | 6/6 | 100% | 2/2 | 100% |
| Dr. Alexander Selent¹ | 4/4 | 100% | 3/3 | 100% | ||
| Sabine Simeon Aissaoui² | 6/6 | 100% | ||||
| Peter Wiedemann (Deputy Chairman) | 10/10 | 100% | 2/2 | 100% | ||
| 98% | 100% | 100% |
¹ Dr. Alexander Selent was a member of the Supervisory Board and Chairman of the Audit Committee until the end of the 2025 Annual General Meeting.
² Ms. Heckelsberger has been a member of the Supervisory Board and Chairwoman of the Audit Committee since the end of the 2025 Annual General Meeting. Ms. Simeon Aissaoui was also elected as a member of the Supervisory Board at the 2025 Annual General Meeting.
Conflicts of interest
In accordance with Recommendation E.1 of the German Corporate Governance Code 2022, each member of the Supervisory Board must disclose any conflicts of interest to the Chairman of the Supervisory Board without delay. No such conflicts of interest were disclosed in the reporting period.
Corporate Governance
The Management Board and Supervisory Board regard corporate governance as an ongoing process and regularly direct their attention to satisfying the requirements of the German Corporate Governance Code. They have conducted a joint review of corporate governance. On May 13, 2025, the Management Board and Supervisory Board submitted an updated Declaration of Conformity, which is reprinted beginning on page 63. The Audit Committee also consulted in-depth on the compliance organization and corporate audits and the results of audits by Internal Audit. Compliance updates are a regular topic of Audit Committee meetings. The new members also had the opportunity to have discussions with senior management.
Since 2024, the Company has been a supporting member of Arbeitskreis deutscher Aufsichtsrat e. V. This enables WashTec to provide the Supervisory Board with continuous and independent professional development, exchange and information. Supervisory Board members also took part in various internal and external professional development events, among other things with the focus on sustainability and governance. As part of the onboarding process for the newly elected members of the Supervisory Board, the Company provided onboarding information and personal discussions were held with members of the Management Board. The new members also had the opportunity to have discussions with senior management. Further information on this can be found in the consolidated sustainability report on page 81.
Remuneration system for the Management Board
In line with the four-year cycle under the German Stock Corporation Act (Aktiengesetz), an updated remuneration system for the Management Board, adopted by the plenary Supervisory Board at its meeting on March 25, 2025, was submitted for approval at the 2025 Annual General Meeting. The remuneration system for the Management Board was approved by the 2025 Annual General Meeting and is published in the Investor Relations section of the Company's website at www.washtec.de.
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The remuneration system for the Management Board is based on the tasks and performance of the members of the Management Board and the Company's overall situation. The overall remuneration of members of the Management Board is made up of monetary and non-monetary as well as fixed and variable components and is linked overall to the the Company's long-term performance.
All remuneration components are designed to be appropriate, both individually and in the aggregate, and such that they do not encourage inappropriate risk-taking. The remuneration of Management Board and Supervisory Board members is described in greater detail in the Remuneration Report, which is available on the Company's website.
Audit of the 2025 annual and consolidated financial statements
The auditor, KPMG AG Wirtschaftsprüfungsgesellschaft, Munich, audited the annual financial statements of WashTec AG for fiscal year 2025 prepared in accordance with the German Commercial Code (HGB), the consolidated financial statements prepared in accordance with the International Financial Reporting Standards (IFRS) applicable in the EU and the combined management report of WashTec AG and the Group, and issued an unqualified audit opinion in each case. In the process, the auditor addressed in depth the focal points of the audit specified by the Audit Committee for the reporting period in the audit engagement. The Supervisory Board has no indication that the RMS and ICS (including the CMS), taken as a whole, were not adequate or effective in any material respect as of December 31, 2025.
KPMG AG Wirtschaftsprüfungsgesellschaft, Munich, has been auditor for WashTec AG and the Group since fiscal year 2024. KPMG also audited the annual financial statements of the Group companies of WashTec AG.
The Audit Committee verified and monitored the independence and qualification of the auditor and addressed audit quality both before and during the course of the audit.
The auditor examined the risk early warning system integrated into the risk management system with regard to its fundamental suitability for identifying going concern risks. In addition, the auditor reported to the Audit Committee and the Supervisory Board on any material weaknesses identified in the internal control and risk management system as it relates to financial reporting.
The Supervisory Board examined in detail the annual financial statements, the consolidated financial statements, the combined management report and the Management Board's proposal on the appropriation of distributable profit. The auditor's audit reports were made available to all members of the Supervisory Board in good time and were discussed in detail both by the Audit Committee at its meeting on March 5, 2026 and at the Supervisory Board meeting for adoption of the financial statements on March 20, 2026. Both meetings were attended by the auditor. All questions posed by members of the Supervisory Board were answered in detail. During preparation and performance of the audit, the Supervisory Board and the Audit Committee regularly exchanged information with the auditor without the involvement of the Management Board. The Chairwoman of the Audit Committee regularly discussed the progress of the audit with the auditor and reported on this to the Audit Committee.
The Supervisory Board approves the results of the audit. Pursuant to the conclusions of the review by the Audit Committee and the Supervisory Board, there are no objections to be raised. At its meeting for adoption of the financial statements, the Supervisory Board approved the annual financial statements of WashTec AG and the consolidated financial statements prepared by the Management Board. The annual financial statements of WashTec AG are thus adopted. The Management Board's proposal on the appropriation of distributable profit was approved by the Supervisory Board following in-depth review.
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Further information
The Audit Committee and the Supervisory Board also dealt in detail with the consolidated sustainability statement of WashTec AG, including the disclosures on EU Taxonomy, and the remuneration report prepared jointly with the Management Board. On behalf of the Supervisory Board, KPMG AG, Wirtschaftsprüfungsgesellschaft, Munich, performed a limited assurance engagement on the consolidated sustainability statement and a substantive audit of the remuneration report and issued an unqualified audit opinion in both cases. The documents were examined in detail by the Audit Committee at its meeting on March 5, 2026 and by the Supervisory Board at its meeting on March 20, 2026. The Supervisory Board approved the remuneration report and took note of and approved the consolidated sustainability statement.
The Supervisory Board would like to thank Dr. Hans Liebler for his many years of service and bids him farewell as he steps down from his position on May 12, 2026. His experience and expertise have greatly enriched the work of the Supervisory Board.
Augsburg, March 2026
For the Supervisory Board
Ulrich Bellgardt
Chairman of the Supervisory Board
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The WashTec Share
Stock market performance in 2025
The stock market year in 2025 was characterized overall by increasing uncertainty. The market environment was notably impacted by geopolitical tensions related to political and fiscal developments in the US, as well as ongoing protectionist tendencies in international trade. This resulted in sometimes severe volatility. In addition, the capital markets paid increasing attention to the persistently high and rising level of US government debt.
Price performance of WashTec share 2025/2026 compared to the SDAX*
*indexed
Source: Deutsche Börse XEYRA Closing prices
These factors led at times to increased risk aversion among investors, as reflected by sharply rising prices of precious metals, such as gold and silver, which many market participants use for hedging purposes. The rise in precious metal prices was interpreted by some as an indication of heightened security needs and declining confidence in fiat currencies, particularly the US dollar.
Despite increased uncertainty and periods of pronounced volatility, international stock markets saw overall gains over the course the year, although there were significant regional and sectoral differences. This reflects the experience of many market participants that recently, geopolitical tensions, trade conflicts and political uncertainties have only had a limited and delayed impact on the real economy.
Supporting factors for the capital markets included rising investment in digital transformation and artificial intelligence, above all in North America and Asia. Inflationary pressure also eased, although inflation is taking longer to return to target levels in the US than in other major economies. In the euro and US dollar currency areas, favorable financing conditions and fiscal support measures also continued to help market sentiment.
While the global economy grew by around $3.3\%$ in 2025 according to the World Economic Outlook published by the International Monetary Fund (IMF), the German Federal Statistical Office estimated that Germany's price-adjusted gross domestic product (GDP) showed a slight $0.2\%$ growth after two years of recession. This modest growth is primarily attributable to increased household and government consumption. However, German exports recorded another decline, particularly due to higher US tariffs, the appreciation of the euro and strong competition from China. Germany's leading index, the DAX, gained $23.0\%$ in 2025, and in early January 2026 surpassed the 25,000 point mark for the first time, showing that the capital markets are increasingly decoupling from the weak performance of the economy. This is
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due partly to higher valuations resulting from a more favorable interest rate environment and also to the robust earnings situation of many large, export-oriented companies. At 25.3%, the performance of the sDAX was just above that of the DAX. The sDAX thus outperformed the DAX for the first time since 2021. The MDAx performed worse at 19.7%.
The German indices thus outperformed – in some cases significantly – major US indices such as the S&P 500, which gained 15.9% (17.4% on a total return basis) or the Nasdaq Composite with a gain of 19.8% (price index, hence little impact of dividends on total return). This partly reflects numerous institutional investors adjusting what in some cases were heavily US-weighted portfolios in favor of European stocks in 2025.
WashTec AG share performance in 2025
Key data on WashTec shares
| 2025 | 2024 | 2023 | ||
|---|---|---|---|---|
| Closing price¹ | € | 47.60 | 40.60 | 32.00 |
| High | € | 47.80 | 42.80 | 41.75 |
| Low | € | 36.20 | 31.75 | 29.75 |
| Opening price | € | 40.90 | 32.00 | 34.55 |
| Number of shares as of Dec 31² | million | 13.3 | 13.4 | 13.4 |
| Free float as of Dec 31³ | % | 25.64 | 32.74 | 40.40 |
| Market capitalization as of Dec 31 | €m | 637.0 | 543.3 | 428.3 |
| Performance over the year | % | 17.2 | 26.9 | -7.4 |
| sDAX (for comparison) | % | 25.3 | -0.8 | 15.5 |
| Earnings per share | € | 2.29 | 2.32 | 2.09 |
| Dividend per share | € | 2.50⁴ | 2.40 | 2.20 |
¹ Based on Xetra closing prices
² Excluding 627,809 treasury shares
³ Held by shareholders whose stakes are below the notification threshold under the Securities Trading Act (WpHG)
⁴ Dividend proposal to the Annual General Meeting 2026
The WashTec share price began 2025 at €40.90 and marked its high for the year at €47.80 on December 29. It recorded its lowest price of the year at €36.20 on August 20, 2025. The end-of-year share price was €47.60. This was 17.2% up on the prior year-end closing price. Total shareholder return came to 23.2%. These figures relate to closing prices on the Xetra trading platform.
As of February 28, 2026, WashTec was trading at €51.00 per share.
Attractive dividend policy
Pursuant to a resolution adopted by the Annual General Meeting on May 13, 2025, the Company paid its shareholders a dividend of €2.40 per share for fiscal year 2024. Dividend distributions thus totaled €32.1m in 2025. Based on the share price as of December 31, 2025, the dividend yield was 5.0%. This places WashTec among the strongest performers on the German stock market in terms of dividend yield.
Additionally, a share buyback program was approved for the period November 6, 2025 to at the latest May 4, 2026. The program is limited to €5.0m or a maximum of 100,000 shares. Up to and including December 30, 2025, repurchases totaled 33,163 shares.
WashTec aims to maintain an attractive dividend policy under which shareholders duly participate in the Company's success.
The Management Board and Supervisory Board are proposing a dividend of €2.50 per share for fiscal year 2025.
Managers' transactions
The following managers' transactions were reported to the Company under the WpHG:
Mr. Andreas Pabst, member of the Management Board, acquired 105 shares on June 27, 2025, 117 shares on July 1, 2025, 278 shares on July 3, 2025 and 100 shares on July 4, 2025.
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Shareholder structure
The majority of WashTec AG shares are held by institutional investors. WashTec AG received and duly published voting rights notifications under the Securities Trading Act (Wertpapierhandelsgesetz) in fiscal year 2025. These are available in the Investor Relations section of the Company's website, www.washtec.de, under Investor Relations – News – Notifications of Voting Rights.
Five investors currently each hold at least 5.00% of the voting rights. To the Company's knowledge, 25.64% of the Company's shares are held by shareholders whose stakes are below the notification threshold.
Shareholder structure as of December 31, 2025
| 15.14% | EQMC ICAV¹ |
|---|---|
| 10.61% | Morgan Stanley² |
| 9.60% | Kempen Oranje Participaties N.V. |
| 7.13% | Norman Rentrop |
| 5.13% | Teslin Capital Management B.V.³ |
| 4.96% | Dr. Kurt Schwarz⁴ |
| 4.58% | Paradigm Capital Value Fund SICAV |
| 4.49% | Treasury shares |
| 4.00% | Diversity Industrie Holding AG |
| 3.50% | Lazard Frères Gestion SAS⁵ |
| 30.86% | Other |
Source: Notifications pursuant to WpHG
¹ Alantra EQMC Asset Management, SGIC, S.A. as investment management function of EQMC ICAV (20.36%)
² Incl. attributable shares to Morgan Stanley & Co. International plc, United Kingdom
³ Incl. attributable shares to Gerlin Participaties Coöperatief u.a., Netherlands, as its fund manager
⁴ LeBna GmbH & Co. AG et al.
⁵ Incl. attributable shares to Lazard Small Caps Euro, France
Active investor relations work
Throughout the year, the Management Board maintained and intensified communications with shareholders, journalists, and the financial community. The annual press conference and conference calls for analysts and investors were held to coincide with the publication of the Company's results. At the Annual General Meeting on May 13, 2025, the Management Board shared its detailed position on the current market situation, business development and strategy and discussed these matters with the shareholders. Shareholders were also kept up to date in a timely manner about all notable events. Management participated in investor relations events including the Hamburg Investor Days (HIT), the Berenberg Goldman Sachs Conference and the Eigenkapitalforum in Frankfurt. Additionally, WashTec introduced capital markets webcasts as a new format to provide all interested investors with a more in-depth explanation of important strategic aspects and details of the Company's business model. These webcasts were streamed in July and November. In addition, numerous virtual investor calls were held in order to give individual investors and interested parties an impression of WashTec.
In 2025, a total of four equity research providers followed WashTec shares: Joh. Berenberg Gossler, M.M. Warburg, Hauck & Aufhäuser and mwb Research. The price targets given by analysts are between €52.00 and €56.00 (as of February 2026).
Further information and contact
Current data regarding the WashTec shares and detailed information about the WashTec Group and its products can be found on the Company's website at www.washtec.com.
Anyone interested in the Company and its shares may also contact the Investor Relations Department at WashTec AG:
Telephone +49 821 5584-5555
E-mail [email protected]
WASH TEC
Management Report
Financial Statements
Further Information
Combined Management Report of WashTec AG and the Group
2025 at a glance 21
General information about the Group 22
Report on economic position 30
Report on subsequent events. 45
Outlook, opportunities and risk report 46
Internal control system and risk management system 58
Risk reporting in relation to the use of financial instruments 59
Takeover-related disclosures 60
Corporate governance statement 63
Consolidated sustainability statement 76
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2025 at a glance
Overview: Group and segments
WashTec Group
- Revenue, at €498.6m, up 4.6% on prior year (€476.9m)
- EBIT, at €48.9m, up by 7.5% on prior year (€45.5m); EBIT margin of 9.8% (prior year: 9.5%)
- Free cash flow of €41.9m, up 6.1% on prior year (€39.5m)
- ROCE of 24.8% up 120 basis points on prior year (23.6%)
Europe and other*
- Revenue, at €425.5m, up 7.8% on prior year (€394.7m)
- EBIT, at €46.2m, up significantly by 10.5% on prior year (€41.8m); EBIT margin of 10.9% (prior year: 10.6%)
North America*
- Revenue of €75.5m, down 11.4% year on year (prior year: €85.2m); in US dollars, revenue of USD 85.6m down 7.1% year on year (prior year: USD 92.1m)
-
EBIT, at €2.7m, down 27.0% on prior year (€3.7m); EBIT margin of 3.6% (prior year: 4.3%)
-
Segment data without cross-segment consolidation
** These disclosures were not subject to an audit by the auditor.
Key financial performance indicators by quarter**
WashTec
Management Report // General Information about the Group
Financial Statements
Further Information
General information about the Group
1.1 Business model
WashTec is more than just a supplier of vehicle wash equipment worldwide. The WashTec product range comprises all types of vehicle wash equipment as well as the associated peripherals, consumables and water recovery systems. As a specialist, WashTec develops a constant stream of innovations – among other things to make vehicle washing more environmentally friendly. WashTec also offers comprehensive servicing packages and digital smart service solutions spanning the entire product life cycle. With the first own digital, fully connected vehicle wash platform, WashTec seamlessly connects operators, customers, services and new business models. These include digital systems that allow operators to remotely monitor and control system parameters, payment solutions, equipment maintenance, equipment return and the supply of consumables. Other services include financing arrangements and operator management of wash equipment. The main revenue driver is the Equipment business line.
As in the past, the Company continues to be managed on the basis of regional segments: Europe and other and North America. For consistency in internal and external communications, our product groups are presented under revised names in external reporting from 2025. Revenue is divided into business lines: Equipment, Service, Consumables (previously Chemicals), and Other.
Revenue by business lines
| Equipment
■ Machinery
■ Gantry carwashes
■ Self-service carwashes
■ Commercial vehicle wash equipment
■ Conveyor tunnel systems
■ Water treatment systems
■ Spare parts | Service
■ Full maintenance agreements
■ On-call-service agreements
■ Service projects and upgrades
■ Digital solutions
■ EasyCarWash Pro
■ WashNow
■ CarWash Assist
■ Smart Site | Consumables
■ AUWA Green Car Care product range
■ Sustainable cleaning, care and specialty products
■ TecsLine premium Green Car Care product line
■ Product range for Scandinavia with Nordic Swan Ecolabel
■ Carwash Alliance |
| --- | --- | --- |
| €268.0m
(prior year: €261.4m) | €155.1m
(prior year: €144.6m) | €69.6m
(prior year: €64.7m) |
Other
■ WashTec Carwash Management
■ WashTec Financial Services (financing and leasing solutions)
€5.9m
(prior year: €6.2m)
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Group structure
The consolidated financial statements of WashTec AG as of and for the year ended December 31, 2025 include the parent company and the Group companies shown below. WashTec AG directly or indirectly owns 100% of these companies.
1 Control and profit (loss) pooling agreement
2 Profit transfer agreement
3 Including subsidiary WashTec Bilwask AS, Norway
4 WashTec Cleaning Technology GmbH 90%, WashTec Holding GmbH 10%
5 Including subsidiary WTMVH Cleaning Technologies Canada, Inc., Canada
6 Including subsidiary WashTec Operational Services Sp. z o.o., Poland
^{}[]
WashTec
Management Report // General Information about the Group
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WashTec AG
As the ultimate parent company of the Group, WashTec AG is responsible for the strategic management and control of all subsidiaries.
Since the Company does not have any operations of its own, its results of operations, financial position and cash flows are primarily determined by the business performance of its subsidiaries. The following information therefore primarily relates to the Group. WashTec AG is discussed separately in section 2.5. The direct subsidiaries of WashTec AG are AUWA-Chemie GmbH, WashTec Holding GmbH and WashTec Carwash Management GmbH. WashTec AG has control and profit (loss) pooling agreements with AUWA-Chemie GmbH and WashTec Carwash Management GmbH and a profit transfer agreement with WashTec Holding GmbH.
WashTec Holding GmbH
With the exception of AUWA-Chemie GmbH and WashTec Carwash Management GmbH, the WashTec Group's investments in operating companies are combined under WashTec Holding GmbH, based in Augsburg. WashTec Holding GmbH has control and profit (loss) pooling agreements with WashTec Financial Services GmbH and WashTec Cleaning Technology GmbH.
WashTec Cleaning Technology GmbH
The majority of the operating business is concentrated in WashTec Cleaning Technology GmbH, based in Augsburg. This is where the WashTec Group's main products are developed, manufactured, sold and serviced. WashTec Cleaning Technology GmbH also supplies and supports the subsidiaries and independent foreign distributors.
AUWA-Chemie GmbH
AUWA-Chemie GmbH produces chemical products for vehicle wash equipment. These are distributed through WashTec subsidiaries and independent distributors.
Foreign subsidiaries
The WashTec Group is represented by the Company's own subsidiaries in the Netherlands, France, Denmark, Norway, Sweden, Italy, Spain, the United Kingdom, Austria, the Czech Republic, Poland, the United States, Canada, Australia and New Zealand. They are responsible for sales and service for WashTec products. An overview of the production locations is provided under the heading "Production, sourcing and logistics."
WashTec Financial Services GmbH and WashTec Carwash Management GmbH
WashTec Financial Services GmbH and WashTec Carwash Management GmbH provide services relating to the sale and operation of carwashes, such as brokering bespoke financing arrangements and services in connection with the operation of carwash equipment.
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WashTec Management Report // General Information about the Group Financial Statements Further Information
Locations
The WashTec Group's global footprint is a key success factor. WashTec has around 1,850 employees worldwide and subsidiaries in all of WashTec's major markets.
In addition, WashTec has a broad network of independent distributors and is thus on the map in over 80 countries throughout the world.
Production, sourcing and logistics
WashTec has a global procurement and production network with production facilities in Germany, the Czech Republic and the USA. Most of the equipment for worldwide distribution is assembled in Augsburg (Germany). Gantry carwashes are produced for the North American market in Denver (USA). Alongside sheet metal processing and electrical assembly, the Nýřany (Czech Republic) plant primarily pre-assembles components for gantry carwashes, self-service wash equipment, and water treatment systems. The Company has two other sites in Germany producing control units (Recklinghausen) and wash chemicals (Grebenau).
Segments
The WashTec Group's global business is divided into geographical segments. The business in Europe, Australia and New Zealand is combined, together with exports to other countries, in the Europe and other segment. The North America segment comprises the activities in the USA and Canada.
Management and control
As an Aktiengesellschaft (a German stock corporation), WashTec AG has a two-tier management and supervisory structure comprising the Management Board and the Supervisory Board. The Management Board is responsible for managing the Company, sets the strategic direction and pursues the goal of sustained growth in shareholder value. The number of Supervisory Board members was increased by resolution of the Annual General Meeting on May 13, 2025. The Supervisory Board, which in accordance with the Articles of Association now consists of six members, appoints, advises and supervises the Management Board.
As the Group parent company, WashTec AG determines corporate strategy and overall control, resource allocation and communication with key stakeholder groups in the business environment, primarily comprising the capital market and shareholders. The Company's internal management and control is based on a value-oriented management system. This encompasses an integrated planning and control strategy, target ratios for management of the Company as well as measures for ensuring sustained and profitable growth, efficiency improvements and efficient capital management. The Company's Management Board and Supervisory Board define corporate strategy and related targets, which are implemented at all business units across all of levels of responsibility in the Group.
Monitoring is performed by way of regular meetings involving all reporting units. These include fortnightly Management Board meetings at which the divisional heads report, monthly meetings with the main divisional heads, regular international management meetings with heads of the operating companies, strategic and annual planning including capital expenditure, production and capacity planning, regular reporting and forecasting, ongoing market analysis, and regular analyses of revenue, sales, order backlog and market share. All capital expenditure projects are continuously reviewed and monitored in the same connection.
WashTec Management Report // General Information about the Group Financial Statements Further Information
External factors influencing the business
Changes in mobility
The major economic and social trend toward individualization is a key driver of continued growth in demand for mobility. The resulting traffic volumes are still largely based on individual travel. In line with the need to decarbonize and the global mobility trends, this is resulting in changes in vehicle fleets. While autonomous driving and shared mobility can mean a reduction in the vehicle fleet, they also lead to increasing passenger mileage with shorter vehicle life cycles.
In addition to the size of the fleet, the type and intensity of vehicle use will also determine carwash demand in the future. Vehicles need to be cleaned no matter how they are powered and regardless of the ownership model. Shared mobility vehicles tend to be washed more frequently.
Decarbonization and sustainability
Sustainability is deeply embedded in the organization and an integral part of the Group strategy. WashTec has a broad and comprehensive understanding of sustainability across the environmental, social and governance dimensions. WashTec's contribution to sustainability is an important factor for its stakeholders, who have increasing information and transparency requirements. Accordingly, WashTec publishes a consolidated sustainability statement in accordance with the European Sustainability Reporting Standards (for further information see section 9, "Consolidated sustainability statement").
With regard to climate change, WashTec contributes to global efforts to limit global warming with its binding target of reducing the Company's carbon footprint in Scopes 1 and 2 to zero by 2040. In consumables, with the AUWA Green Car Care product range, WashTec offers customers a solution for using more environmentally compatible products. For the reduction of water consumption, the use of recirculating water treatment systems in automated vehicle washing can significantly reduce the amount of mains water consumed compared both to hand washing and to a carwash without a water recovery system.
Economy
A key factor influencing the uptake of automated vehicle washing is a country's average per capita income. As this increases, it creates sustainable market potential worldwide, especially in regions that are transitioning from manual to automated washing.
Customer expectations
Customer expectations have also changed in recent years along with changing conditions and requirements in the carwash market. Based on a customer survey, our customers see automation as crucial to improving the user experience, along with sustainability initiatives such as water recycling and energy savings. Another aspect is the need to improve the cleaning of problem areas and to adapt wash equipment to new vehicle models. Rising energy costs, equipment availability, the skills shortage and carwash utilization rates also influence customer expectations.
WashTec therefore continues to operate on the basis that clean cars will remain a key quality criterion. Additionally, as it transforms into a solution provider, WashTec is prioritizing smart, digital solutions. These enable WashTec to provide customers with integrated solutions for car washing, tailored support and smart technology.
The Company closely monitors the development of external factors affecting the business in order to respond to changes in a timely manner and make the appropriate strategic choices.
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1.2 Corporate objective and strategy
The WashTec Group further refined its corporate strategy in fiscal year 2025.
In the rapidly changing world of mobility, WashTec is a pioneer in providing integrated solutions in the vehicle washing business with maximum added value for customers. WashTec aims to ensure all customers an outstanding wash and care experience. With innovative, sustainable and digitally integrated technologies, high-quality consumables and first-class service, WashTec offers customers top quality in vehicle washing.
The WashTec Group's strategy addresses the following core elements:
- Customers and markets
- Portfolio
- Solutions
Customers and markets
WashTec's customer portfolio includes all business customers (carwash operators). Support is provided through structured key account management and direct sales. The geographical focus of activities is on the European and North American markets. These regions form the core of future growth and are crucial to the long-term development of the WashTec Group.
Portfolio
WashTec's product and service portfolio includes vehicle wash equipment, water recycling systems, consumables and comprehensive service. WashTec ensures high quality and reliability through the use of efficient technologies.
Solutions
WashTec's solution portfolio includes smart, digital and sustainable products as well as comprehensive solution packages that combine equipment, consumables and service in an integrated approach. With its packaged services, WashTec supports customers throughout the entire life cycle and creates added value through efficiency, quality and sustainability.
1.3 Control system
Key financial and non-financial performance indicators
The key financial and non-financial performance indicators used by the Company for planning and control are as follows:
Key financial performance indicators
- Revenue
- EBIT
- Free cash flow
- ROCE
The free cash flow performance indicator is defined as cash inflow from operating activities less cash outflow from investing activities.
Return on capital employed (ROCE) is defined as the ratio of EBIT to capital employed. We define capital employed as non-current assets (non-current assets including goodwill and right-of-use assets) plus net operating working capital (NOWC), calculated as the average of the reporting date figures for the last five quarters. NOWC is defined as the sum of inventories and trade receivables (including other receivables) less trade payables and contract liabilities from prepayments.
The two performance indicators ROCE and free cash flow are tracked solely at Group level.
WashTec
Management Report // General Information about the Group
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Non-financial key performance indicator
The following non-financial performance indicator is additionally used at Group level:
- Accident rate: Work-related accidents/million hours worked
Occupational health and safety is a top priority for WashTec. To this end, WashTec has implemented a Quality, Health, Safety and Environment Management System. Regular audits and certifications are used to monitor the effectiveness of workplace safety for all employees. A work-related accident is defined as a work-related accident (excluding commuting accidents) with at least one lost day (excluding the day of the accident).
Opportunities and risk management
Responsible management of business risks is one of the principles of good corporate governance. The Management Board has comprehensive Group-wide and company-specific reporting and control systems at its disposal for the recording, assessment and management of business risks. These systems are continuously developed and adapted to changing conditions. The Management Board regularly informs the Supervisory Board about existing risks, any measures taken and their development.
Details of risk management are found in the risk report, which is part of the management report. The management report contains the report required under Sections 289 and 315a of the German Commercial Code (HGB) on the internal monitoring and risk management system.
1.4 Research and development
Research and development focused in fiscal year 2025 on the systematic further development of our product portfolio and the optimization of installation and service processes. The SmartCare Connect carwash paves the way for greater flexibility and efficiency in vehicle washing. It provides operators with added customization options and access to our digital services, which enable smart control and maintenance and ensure reliable performance even in extreme conditions. An important milestone was also reached in the Consumables business line, with the development and market launch of Magic Care, a new high-performance wash and care product.
In total, round 86 employees work in research and development at the WashTec headquarters in Augsburg. International patents secure the future solution space for WashTec.
Total operating research and development expenditure in the WashTec Group amounted to approximately €14.2m in 2025 (prior year: €16.5m). This also included external services in the amount of €1.0m (prior year: €2.6m). The Group's capitalized development costs came to €1.9m in fiscal year 2025 (prior year: €1.9m) and mainly related to the development of digital solutions and vehicle wash products.
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Management Report // Report on Economic Position
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2
Report on economic position
2.1 Overall economic and industry-specific environment and conditions
Overall economic development
Global economic development
Development of the gross domestic product*
| Forecast 2025 | Actual 2025 | Forecast 2026 | |
|---|---|---|---|
| Germany | 0.3% | 0.2% | 1.1% |
| Euro area | 1.0% | 1.4% | 1.3% |
| USA | 2.7% | 2.1% | 2.4% |
| China | 4.6% | 5.0% | 4.5% |
| Developing and emerging markets | 4.2% | 4.4% | 4.2% |
| World | 3.3% | 3.3% | 3.3% |
*International Monetary Fund (IMF) World Economic Outlook, January 19, 2026
Global economic development in fiscal year 2025 was marked by a mix of opposing forces. Supporting factors included rising investment in digital transformation and artificial intelligence, above all in North America and Asia, and a continuation of favorable borrowing conditions and fiscal support measures. Inflation also continued to decline, although it is taking longer to return to target levels in the US than in other major economies. These factors counterbalanced the ongoing negative impact of global trade conflicts and geopolitical tensions.
In its forecast for 2026, the International Monetary Fund (IMF) predicts that global growth will remain broadly stable. Positive momentum in the tech sector will continue to offset declines in other industries. Despite the ongoing risk that trade conflicts and geopolitical
uncertainties will escalate, they are expected to exert less of a drag on the economy. The current developments in the Middle East, however, could lead to increases in commodity and energy prices, particularly if the blockade of the Strait of Hormuz continues for a prolonged period. At present, it is difficult to assess the direct consequences for the global economy. In the USA, a combination of fiscal stimulus and lower key interest rates is making for robust growth. Economic growth in the eurozone remains stable at a low level, weighed down by structural problems, high energy prices and a lesser share in the global technology surge. The positive effects of higher government spending will only be felt over time. Emerging markets continue to grow more dynamically overall, driven by economic policy measures in China. All in all, the IMF expects stable global economic growth in 2026 at the same level as in 2025.
Sectoral development
Economic growth in Germany remained weak in 2025. The recovery of the German economy is significantly hindered by the challenges of profound structural change, including decarbonization, digitalization and demographic change. Because the manufacturing sector is important to the overall economy, it is hit particularly hard by the effects of this structural change. In fiscal year 2025, this was reflected in a stagnation of order intake in the mechanical engineering industry. Over the year as a whole, orders from within Germany fell by 1% and orders from outside the eurozone by 2%, although eurozone orders increased significantly by 7%. The net outcome was zero real growth in total orders. The Mechanical Engineering Industry Association (VDMA) mainly attributes the stagnating order intake to a lack of structural reforms to strengthen competitiveness. As orders picked up in the fourth quarter of 2025, the VDMA expects slight output growth of 1% for 2026.
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The ifo Institute's forecast for fiscal year 2026 is more conservative than that of the IMF and the German government. Due to the high cost of meeting structural challenges, the ifo Institute expects a growth rate of 0.8%. The German government is forecasting growth of 1.0% for 2026. The expected overall recovery is primarily a result of government investment in the modernization of public infrastructure. In addition, fiscal relief measures such as the government's immediate tax investment program with improved tax depreciation rules for businesses, together with falling energy costs, are helping to further strengthen economic growth. Negative effects are seen in sluggish consumer demand and the lack of growth impetus from German foreign trade due to the difficult geopolitical situation and trade policy uncertainties.
Market for carwash equipment
Customer groups
WashTec's customers are predominately operators of filling stations that offer on-site carwashes. These customers include multinational petroleum companies, retailers (convenience stores), individual filling station operators and operator chains. Additional key customer groups include carwash operators, automobile repair shops, supermarket chains, road freight companies and public transport operators.
Competitors
WashTec's own research shows it to be the global market leader with an installed base of over 43,500 units of vehicle wash equipment. In Europe – a developed market with intense competition – WashTec leads the market by a wide margin in terms of market coverage and market share. The North American market is more shaped by conveyor tunnel systems. European and American competitors contend for a developed market in Australia and New Zealand.
Sales markets
The geographical focus of activities is on the European and North American markets. WashTec generates a significant portion of revenue in Europe and aims to further extend its market position there. In addition, in the medium and long term, the Company plans to significantly increase its penetration of the North American market with targeted products and services, thus contributing to revenue growth.
2.2 Group business performance
The following section examines the WashTec Group's business performance. WashTec AG is discussed separately in section 2.5.
The global economic environment changed only slightly overall in fiscal year 2025 compared to the International Monetary Fund (IMF) forecasts presented in the Annual Report 2024. In the European economic area, the economy performed slightly better than originally forecast. In North America, economic growth was supported in particular by investment in the technology sector.
With regard to the business performance of the WashTec Group, the positive trend in Europe continued, primarily due to a favorable financing environment. The USA has seen a prolonged period of both higher interest rates and a slow rate of decline in inflation. This macroeconomic environment, coupled with cautious investment behavior among major customers, had the effect of slowing business development in 2025.
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| 2024 | Guidance 2025 | 2025 | Change year on year | ||
|---|---|---|---|---|---|
| Revenue | €m | 476.9 | Mid single-digit percentage increase | 498.6 | 4.6% |
| EBIT | €m | 45.5 | Disproportionate increase in excess of revenue growth* | 48.9 | 7.5% |
| Free cash flow | €m | 39.5 | €35m - €45m | 41.9 | 6.1% |
| ROCE | % | 23.6 | Continuous increase, by 0.5-2.5 percentage points | 24.8 | 1.2 percentage points |
| Accident rate (work accidents/million hours worked) | 6.4 | below the (low) value for the 2023 fiscal year (4.2) | 8.4 | 2.0 |
*i.e. in the upper single-digit to low double-digit percentage range
The WashTec Group generated revenue of €498.6m in fiscal year 2025, a new record and an increase of €21.7m or 4.6% on the prior year (€476.9m). The target of a mid-single-digit percentage increase in revenue as communicated in the Annual Report 2024 was therefore achieved. At constant exchange rates, revenue rose to €503.9m (prior year: €476.9m) or by 5.7%, and would thus exceed the €500m mark for the first time in the Company's history.
The strong growth momentum in the Europe and other segment more than offset the falling performance in the North America segment. In the Europe and other segment, unit sales were up on the prior year, both with key accounts and in the direct sales business. Revenue increased in the single-digit percentage range by 7.8% to €425.5m (prior year: €394.7m). In the North America segment, on the other hand, by unusually protracted contract negotiations with key accounts, uncertainties in the economic environment and persistently high interest rates slowed down business and led to a revenue decrease compared to the prior year. Furthermore, a number of orders were not fulfilled as planned by the end of 2025 and will now be completed in 2026. Revenue amounted to €75.5m (prior year: €85.2m), primarily
due to lower unit sales as a result of orders being postponed to the new year and a persistently difficult market environment. Revenue in US dollars came to USD 85.6m (prior year: USD 92.1m).
In total, revenue increased year on year in the business lines Equipment, Service and Consumables. Revenue in the Equipment business line was up 2.5% year on year at €268.0m (prior year: €261.4m). In the Service business line, revenue increased significantly by €10.5m or 7.3% to €155.1m (prior year: €144.6m). This was due among other things to process optimization, digital integration and increased capacity in this business line. At the end of December, WashTec had over 13,500 units connected online – an increase of around 19% on the end of fiscal year 2024. Revenue in the Consumables business line also developed positively, rising from €64.7m to €69.6m. Intensified sales activities were accompanied by favorable weather conditions at the beginning of the fiscal year. Over the year to December, the percentage of total revenue accounted for by recurring Service and Consumables revenue consequently rose to 45.1% (prior year: 43.9%).
Largely due to the improvement in gross profit, EBIT rose by 7.5% to €48.9m (prior year: €45.5m). This positive performance was mainly due to the increased business volume in the Europe and other segment. The EBIT margin came to 9.8% (prior year: 9.5%). This met the Company's forecast of a disproportionately increase in EBIT relative to revenue (i.e., in the upper single-digit to lower double-digit percentage range).
In the final quarter of the year, revenue fell slightly by 1.5% to €140.4m, down on the prior-year quarter, which was the second strongest in the Company's history (prior year: €142.6m). Although fourth-quarter revenue in the Europe and other segment was also up on the prior year, the growth was not sufficient to offset the fall in revenue in the North America segment. Fourth-quarter EBIT amounted to €16.5m and was down on the prior year (€17.9m). The EBIT margin amounted to 11.8% (prior year: 12.6%).***
With free cash flow of €41.9m, the WashTec Group slightly exceeded the prior-year figure (€39.5m). This met the forecast.
** Segment data without cross-segment consolidation
*** This section was not subject to audit or review by the auditor.
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| 2025 | 2024 | Change | ||
|---|---|---|---|---|
| absolut | in % | |||
| EBIT €m | 48.9 | 45.5 | 3.4 | 7.5 |
| Capital Employed (CE)* €m | 197.2 | 193.1 | 4.1 | 2.1 |
| ROCE % | 24.8 | 23.6 | 120 bps | - |
bp: basis point (1/100th of a percentage point)
ROCE rose by 1.2 percentage points to 24.8% (prior year: 23.6%). The target of an increase in ROCE by 0.5-2.5 percentage points was therefore achieved. The denominator, capital employed*, increased by €4.1m or 2.1% year on year. The increase is due to higher non-current assets. At the same time, Group EBIT improved by €3.4m or 7.5%.
The accident rate for the year was 8.4 due to several minor accidents, without any systematic cause. The target set for 2025 of an accident rate less than 4.2 was not met.
Overall, the WashTec Group looks back positively on fiscal year 2025. Viewed on the whole, however, segmental performance varied. The Europe and other segment performed particularly well. Revenue growth was generated here in the business lines Equipment, Service and Consumables. By contrast, the North America segment was affected in the past fiscal year by economic uncertainty and the resulting reluctance to invest, and fell short of expectations. However, the larger order backlog compared to the prior year and the increase in orders received (in USD) also give this segment a favorable start for fiscal year 2026.
Orders received and order backlog
In the fiscal year under review, equipment orders received were up on the prior year, increasing both with key accounts and with direct customers. Accordingly, the year-end equipment order backlog was up on the prior year, underscoring the continued stable demand.
2.3 Group financial position and cash flows
2.3.1 Results of operations
Income statement
The following table shows the income statement of the WashTec Group:
| in €m | 2025 | 2024 | Change | |
|---|---|---|---|---|
| absolute | in % | |||
| Revenue | 498.6 | 476.9 | 21.7 | 4.6 |
| Cost of sales | -342.4 | -329.2 | -13.2 | -4.0 |
| Gross profit | 156.2 | 147.7 | 8.5 | 5.8 |
| Gross profit margin in % | 31.3 | 31.0 | 30 bps | - |
| Research and development expenses | -14.2 | -16.5 | 2.3 | 13.9 |
| Selling expenses | -68.5 | -63.3 | -5.2 | -8.2 |
| Administrative expenses | -24.3 | -21.2 | -3.1 | -14.6 |
| Other income and expenses | -0.3 | -1.2 | 0.9 | 75.0 |
| EBIT | 48.9 | 45.5 | 3.4 | 7.5 |
| EBIT margin in % | 9.8 | 9.5 | 30 bps | - |
| Financial result | -2.5 | -3.2 | 0.7 | 21.9 |
| EBT | 46.5 | 42.3 | 4.2 | 9.9 |
| Income taxes | -15.8 | -11.3 | -4.5 | -39.8 |
| Net income | 30.7 | 31.0 | -0.3 | -1.0 |
| Earnings per share (€) | 2.29 | 2.32 | -0.03 | -1.3 |
bp: basis point (1/100th of a percentage point)
*Non-current assets including goodwill and right-of-use-assets +
NOWC, CE calculated as the average over five quarters
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34
Group revenue
Revenue in €m, multi-year comparison*
*The quarterly figures were not audited by the auditor
The WashTec Group generated revenue of €498.6m in the year ending December 31, 2025, an increase of €21.7m or 4.6% on the prior year (€476.9m).
Detailed discussion of the development of the individual segments is provided under "Reporting by segments" in section 2.3.2.
Revenue by business lines
At €268.0m, revenue in the Equipment business line was €6.6m higher than in the prior year (€261.4m). The exceptionally good performance in the Europe and other segment, with higher unit sales for both key accounts and direct business, counteracted the downward trend in the North America segment.
By contrast, revenue in the Service business line increased significantly by €10.5m to €155.1m (prior year: €144.6m). This was notably due to process optimization, improved digital integration and increased capacity in this business line.
Consumables revenue, at €69.6m, was 7.6% higher than in the prior year (€64.7m). This was supported in particular by the intensification of sales activities and the favorable carwash weather at the beginning of the fiscal year.
The percentage of total revenue accounted for by recurring Service and Consumables revenue rose to 45.1% over the year (prior year: 43.9%).
Other revenue, mainly from the arrangement of financing and the operations business, accounts for around 1.2% of the WashTec Group's total revenue.
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Further information on the income statement
Gross profit
Due to the higher revenue, gross profit, at €156.2m, was 5.8% higher than in the prior year (€147.7m). Gross profit thus increased disproportionately compared to revenue. This positive performance is mainly due to the increased business volume in the Europe and other segment and the efficiency improvement programs already launched in the year under review.
At 31.3%, the gross profit margin remained on a par with the prior year (31.0%).
Research and development expenses
Research and development expenses were lower than the prior year, at €14.2m (prior year: €16.5m). The decrease is due among other things to the completion of product development. New product development costs of €1.9m were capitalized in the reporting year (prior year: €1.9m) and will be amortized in subsequent periods. Amortization of research and development expenditure capitalized in prior years totaled €1.4m (prior year: €1.1m). The capitalization rate was 13.4% (prior year: 11.5%). As of December 31, 2025, around 86 employees (prior year: around 80 employees) worked in research and development. This represents 4.6% (prior year: 4.5%) of the workforce.
Selling expenses
Selling expenses increased by €5.2m, from €63.3m to €68.5m. Selling expenses as a percentage of revenue went up from 13.3% in the prior year to 13.7%. This is the result of higher outbound freight linked to the revenue growth and of the expansion of the sales organization for preparation and implementation of the corporate strategy refinement described under "Business policy and strategy" in section 4.1.1 and for the launch of new products.
Administrative expenses
Administrative expenses in the reporting year, at €24.3m, were €3.1m higher than in the prior year (€21.2m). The increase is mainly due to higher IT expenses for ongoing projects, such as IT expenses related to the planned S4/HANA implementation and new software for service optimization, and expenses accounted for in this item for employee participation in the Company's performance.
Other income and expenses
Other income and expenses were up on the prior year at €-0.3m (prior year: €-1.2m). The year-on-year change was mainly due to higher exchange rate gains and lower loss allowances on receivables.
EBIT
EBIT in €m, multi-year comparison*
*The quarterly figures were not audited by the auditor
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In total, earnings before interest and taxes (EBIT) rose disproportionately in relation to revenue by 7.5% to €48.9m (prior year: €45.5m).
The EBIT margin increased due to the improved gross profit margin to 9.8% (prior year: 9.5%).
A presentation of EBIT by segments is provided under "Reporting by segments" in section 2.3.2.
EBITDA
Earnings before interest, taxes, depreciation and amortization (EBITDA) came to €65.0m (prior year: €60.1m). EBITDA is made up of earnings before interest and taxes (EBIT) in the amount of €48.9m (prior year: €45.5m) plus depreciation and amortization in the amount of €16.1m (prior year: €14.6m). Depreciation and amortization increased in the reporting year due to expenditure focused on digitalization and locations in previous years.
The EBITDA margin was 13.0% (prior year: 12.6%).
Financial result
Analysis of financial result
| in €m | 2025 | 2024 |
|---|---|---|
| Other interest income | 0.3 | 0.4 |
| Income from financial instruments | 0.0 | 0.1 |
| Financial income | 0.3 | 0.5 |
| Interest-bearing loans | 1.9 | 2.6 |
| Interest expense from discounting lease liabilities | 0.8 | 0.7 |
| Other interest expense | 0.1 | 0.4 |
| Financial expenses | 2.8 | 3.6 |
| Financial result | -2.5 | -3.2 |
The financial result improved to €-2.5m (prior year: €-3.2m). This is mainly due to a lower average interest rate for interest-bearing loans in the past fiscal year.
EBT
Earnings before tax (EBT) increased to €46.5m (prior year: €42.3m).
Income taxes
The income taxes of €15.8m (prior year: €11.3m) consist of current taxes and of deferred taxes mainly relating to temporary differences. The tax rate (relative to EBT) was 33.9% (prior year: 26.7%), which was in line with the expected tax rate of 32.2%. The lower tax rate in the previous year resulted from reversals in deferred taxes.
Net income
Net income in €m, multi-year comparison*
*The quarterly figures were not audited by the auditor
Due to the higher tax expense, net income deteriorated slightly by €0.3m to €30.7m (prior year: €31.0m). Earnings per share (diluted = basic) fell by 1.3% to €2.29 (prior year: €2.32).
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During the past fiscal year, the Management Board of WashTec AG, with the Supervisory Board's approval, decided the launch of a share buyback program. Due to the share buybacks carried out in fiscal year 2025, the average number of shares in circulation decreased from 13,382,324 to 13,379,578. Further information is provided in Notes 24.
Use of funds/dividend proposal
WashTec has pursued an attractive dividend policy in past years and will continue to do so going forward. The Management Board and Supervisory Board intend to recommend to the Annual General Meeting, which is due to be held on May 12, 2026, to appropriate the distributable profit of €38,139,702.55 shown in the annual financial statements of WashTec AG for fiscal year 2025 as follows: Distribution of €2.50 per eligible share (number of shares entitled to dividends as of December 31, 2025: 13,349,161), totaling €33,372,902.50, with the remaining distributable profit of €4,766,800.05 to be carried forward.
2.3.2 Reporting by segments
The performance of reportable segments in the WashTec Group is assessed by the Management Board of WashTec AG as the chief operating decision maker.
Revenue by segments*
EBIT by segments*
Europe and other
| Europe and other segment key figures | ||||
|---|---|---|---|---|
| 2025 | 2024 | Change | ||
| Revenue | €m | 425.5 | 394.7 | 7.8% |
| EBIT | €m | 46.2 | 41.8 | 10.5% |
| EBIT margin | % | 10.9 | 10.6 | 30 bps |
| Employees (as of Dec 31) | persons | 1,599 | 1,521 | 5.1% |
by: basis point (1/100th of a percentage point)
Market environment
In the Europe and other segment, new registrations of passenger vehicles have remained at a high level in recent years. According to our own surveys, the wash equipment market in the Europe and other segment - alongside that in the North America segment - is one of the most developed vehicle wash markets in the world. It has the highest number of installed carwashes and well-developed provider services and distribution structures.
Cross-segment consolidation effects are disregarded. Percentage change relative to comparative period.
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On the basis of our own analyses, WashTec's customers in the Europe and other segment are predominately operators of filling stations that offer on-site carwashes. These customers include multinational petroleum companies, retailers (convenience stores), individual filling station operators and operator chains. Additional key customer groups include carwash operators, supermarket chains, car dealerships, car repair shops and road freight companies.
Competition in this segment is intense and limited to just a few manufacturers. A key factor is a market-wide service network and installed base. New competitors face correspondingly high barriers to entry. According our own surveys, WashTec is the clear market leader in terms of market coverage and market share, and has by far the most well-established sales and service network and by far the largest installed base of gantry carwashes in Europe's core markets.
Revenue
Revenue in the Europe and other segment rose across all business lines by $7.8\%$ to $\in 425.5\mathrm{m}$ (prior year: $\in 394.7\mathrm{m}$ ). In the Equipment business line, revenue growth was generated both with key accounts and in direct sales. Revenue in the Service and the Consumables business lines also increased year on year.
Earnings
At €46.2m, EBIT in the Europe and other segment was significantly higher than in the prior year (€41.8m). The EBIT margin was 10.9% (prior year: 10.6%). Segment earnings include additional expenses for implementation of the corporate strategy refinement described under "4.1.1 Business policy and strategy" and for ongoing IT projects.
North America
| North America segment key figures | ||||
|---|---|---|---|---|
| 2025 | 2024 | Change | ||
| Revenue | €m | 75.5 | 85.2 | -11.4% |
| EBIT | €m | 2.7 | 3.7 | -27.0% |
| EBIT margin | % | 3.6 | 4.3 | -70 bps |
| Employees (as of Dec 31) | persons | 262 | 249 | 5.2% |
bp: basis point (1/100th of a percentage point)
Market environment
In North America, new registrations of passenger vehicles and light trucks have remained at a high level in recent years. Slight population growth and a constant high level of vehicle ownership are expected to continue in the future.
According to our own analyses, the main customer groups in the North America segment – alongside a number of major customers – are independent small or medium-size carwash chains and convenience stores. The ratio of conveyor tunnel systems to gantry carwashes is above the global average, largely due to consumer preferences, with consumers attaching particular importance to rapid and frequent washing.
Revenue
Revenue in the North America segment fell by $11.4\%$ , from $\in 85.2m$ in the prior year to $\in 75.5m$ . In US dollars, revenue fell by $7.1\%$ to USD 85.6m (prior year: USD 92.1m). Revenue was down year on year due to lower unit sales of equipment. Performance in this segment was influenced by protracted contract negotiations with key accounts in the first half of the year, delays in connection with newly opened sites due to prolonged construction work, and the economic environment in North America.
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The persistently high level of interest rates and the slow rate of decline in inflation also had a negative impact on customers' willingness to invest. In USD, despite the challenging environment, orders received increased by a double-digit percentage compared to the prior year. Revenues in the Service and Consumables business lines increased slightly compared to the previous year.
Earnings
Due to the lower revenue, EBIT in the North America segment, at €2.7m, was lower than in the prior year (€3.7m).
2.3.3 Net assets
Assets and capital structure
Condensed consolidated balance sheet: assets
| in €m | Dec 31, 2025 | Dec 31, 2024 | Change | |
|---|---|---|---|---|
| absolute | in % | |||
| Fixed assets* | 109.8 | 109.1 | 0.7 | 0.6 |
| Receivables and other assets | 94.8 | 91.4 | 3.4 | 3.7 |
| Inventories | 59.3 | 55.1 | 4.2 | 7.6 |
| Deferred tax assets | 5.2 | 4.6 | 0.6 | 13.0 |
| Cash and cash equivalents | 17.5 | 19.5 | -2.0 | -10.3 |
| Total assets | 286.6 | 279.7 | 6.9 | 2.5 |
Condensed consolidated balance sheet: equity and liabilities
| in €m | Dec 31, 2025 | Dec 31, 2024 | Change | |
|---|---|---|---|---|
| absolute | in % | |||
| Equity | 82.0 | 88.5 | -6.5 | -7.3 |
| Interest-bearing loans | 47.1 | 43.9 | 3.2 | 7.3 |
| Liabilities and provisions | 122.9 | 113.5 | 9.4 | 8.3 |
| of which provisions (including income taxes) | 27.5 | 25.9 | 1.6 | 6.2 |
| of which trade payables | 24.7 | 19.6 | 5.1 | 26.0 |
| Contract liabilities | 31.6 | 31.5 | 0.1 | 0.3 |
| of which current contract liabilities from prepayments | 21.7 | 21.9 | -0.2 | -0.9 |
| Deferred tax liabilities | 3.0 | 2.2 | 0.8 | 36.4 |
| Total equity and liabilities | 286.6 | 279.7 | 6.9 | 2.5 |
Assets
The goodwill included in the WashTec Group's non-current assets amounted to €43.8m (prior year: €43.9m). Property, plant and equipment primarily consists of the items land and buildings in the amount of €21.4m (prior year: €22.5m) and technical equipment and machinery in the amount of €8.5m (prior year: €8.4m). Also included are right-of-use assets in the amount of €21.8m (prior year: €20.8m). Intangible assets amount to €11.0m (prior year: €10.4m).
Receivables and other assets went up from €91.4m in the prior year to €94.8m. While trade receivables (including other receivables) fell slightly, amounts receivable from tax authorities increased by €4.1m. This is mainly due to the reimbursement of investment income withholding tax.
Inventories increased by €4.2m to €59.3m at the end of the year (prior year: €55.1m).
*Property, plant and equipment, goodwill, intangible assets and right-of-use assets
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| in €m | 2025 | 2024 | Change | |
|---|---|---|---|---|
| absolute | in % | |||
| + Trade receivables (incl. other receivables) | 79.6 | 80.4 | -0.8 | -1.0 |
| + Inventories | 59.3 | 55.1 | 4.2 | 7.6 |
| - Trade payables | 24.7 | 19.6 | 5.1 | 26.0 |
| - Contract liabilities from prepayments | 21.7 | 21.9 | -0.2 | -0.9 |
| NOWC | 92.5 | 94.0 | -1.5 | -1.6 |
At €92.5m, net operating working capital was on a par with the prior year (€94.0m). The large order backlog compared to December 31, 2024 led to an increase in inventories and consequently to higher trade payables. Inventories additionally include increased stocks in connection with the market launch of the new product generation.
Deferred tax assets increased in total from €4.6m to €5.2m and mainly relate to temporary differences between the tax base and IFRS carrying amounts.
Cash and cash equivalents fell as a year-end effect from €19.5m in the prior year to €17.5m.
Equity and liabilities
Equity decreased to €82.0m (prior year: €88.5m). This was primarily due to the higher dividend payment of €32.1m in the second quarter (prior year: €29.4m), negative currency translation effects on equity (primarily relating to the USD), and the €1.5m share buyback. The equity ratio, at 28.6%, was down on the prior year (31.7%).
Interest-bearing loans rose compared to December 31, 2024 from €43.9m to €47.1m.
Lease liabilities amounted to €22.6m as of the reporting date, on a similar level to the prior year (€21.8m).
Net financial debt (cash and cash equivalents less financial liabilities) consequently stood at €52.2m as of December 31, 2025 (prior year: €46.3m).
The provisions (including income tax provisions) of €27.5m (prior year: €25.9m) mainly comprised provisions for personnel (including pensions and partial retirement) in the amount of €10.6m (prior year: €12.1m) and warranties in the amount of €6.0m (prior year: €6.5m).
Trade payables increased from €19.6m to €24.7m, in line with the increase in inventories.
At €31.6m, contract liabilities were at the prior year's level (€31.5m). This item included prepayments on orders from customers of €21.7m (prior year: €21.9m) and deferred income for full maintenance, extended guarantees and prepaid service agreements.
At €3.0m, deferred tax liabilities were higher than in the prior year (€2.2m). They related to temporary differences between the tax base and IFRS carrying amounts.
2.3.4 Financial position
Capital structure
As part of centralized financial management, the companies of the WashTec Group are financed through WashTec Cleaning Technology GmbH under bilateral agreements with various banks. The bank loans are not tied to any financial covenants. The Company's liabilities are denominated in euros and US dollars. The base interest rate on the loans is variable and
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linked to EURIBOR, €STR and SOFR. To hedge these interest rate exposures, derivative financial instruments in the form of interest rate swaps were held for hedging purposes. As of December 31, 2025, the WashTec Group had one credit line totaling €97.4m (prior year: €99.3m) consisting of demand facilities terminable on one month's notice totaling €60.0m (prior year: €60.0m) and facilities with remaining terms of 15 to 27 months as of December 31, 2025 totaling €37.4m (prior year: €39.3m). The credit lines may be drawn on both as credit and as guarantee facilities.
The undrawn amount of the credit line available for future operating activities and to meet obligations was €47.3m as of the reporting date (prior year: €41.4m). Further information is provided in Notes 28 and 32.
Capital expenditure, depreciation and amortization, and impairments
Capital expenditure, at €7.4m, was lower in the reporting year than in the prior year (€8.4m). The focus of capital expenditure, accounting for €6.1m (prior year: €8.1m), was on the Europe and other segment. As in the prior year, the main focus of capital expenditure was on the development of digital products and solutions and the modernization of production equipment. In the prior year, there was an addition of €0.7m from the acquisition of the longstanding Polish distributor.
Depreciation and amortization is recognized on a straight-line basis over the economic useful life of the asset. In the current fiscal year, depreciation and amortization amounted to €16.1m (prior year: €14.6m) and resulted primarily from right-of-use assets. For further information on depreciation and amortization, please refer to the "EBITDA" section.
Goodwill is not amortized but is tested annually for impairment. The impairment test is based on the Group-level internal planning for 2026 to 2030.
Capital employed amounted to €197.2m (prior year: €193.1m). The increase is due to higher fixed assets. Capital employed is determined as follows***:
| in €m | Dec 31, 2024 | Mar, 31 2025 | Jun 30, 2025 | Sep 30, 2025 | Dec 31, 2025 | 2025 (Ø 5 quarters) | 2024 (Ø 5 quarters) |
|---|---|---|---|---|---|---|---|
| Fixed assets* | 109.1 | 108.9 | 108.7 | 108.0 | 109.8 | 108.9 | 104.1 |
| NOWC | 94.0 | 81.6 | 83.5 | 90.0 | 92.5 | 88.3 | 89.0 |
| Capital employed (CE) | 203.1 | 190.5 | 192.3 | 198.1 | 202.3 | 197.2 | 193.1 |
Information on capital employed** and ROCE can be found in the "Group business performance" section.
Cash flow statement
| in €m | 2025 | 2024 | Change | |
|---|---|---|---|---|
| absolute | in % | |||
| Net income | 30.7 | 31.0 | -0.3 | -1.0 |
| Net cash inflow from operating activities | 48.8 | 49.7 | -0.9 | -1.8 |
| Net cash outflow from investing activities | -6.8 | -10.2 | 3.4 | 33.3 |
| Free cash flow | 41.9 | 39.5 | 2.4 | 6.1 |
| Net cash outflow from financing activities | -47.6 | -44.0 | -3.6 | -8.2 |
| Net change in cash funds | -5.7 | -4.5 | -1.2 | -26.7 |
| Net foreign exchange difference | -1.3 | 0.6 | -1.9 | -316.7 |
| Cash funds as of Jan 1 | -19.5 | -15.6 | -3.9 | -25.0 |
| Cash funds as of Dec 31 | -26.5 | -19.5 | -7.0 | -35.9 |
At €48.8m, the net cash inflow from operating activities was on a par with the prior year (€49.7m). It should be noted that the prior year included a one-off effect from the reimbursement of investment income tax in the amount of €10.6m. Adjusted for this effect, the net cash inflow from operating activities increased significantly by 24.8%.
including goodwill and right-of-use assets
*calculated as the average over five quarters
*** This table was not audited by the auditor
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Further Information
The net cash outflow from investing activities amounted to €6.8m in fiscal year 2025 (prior year: €10.2m) and mainly relates to capital expenditure on non-current assets – see under "Capital expenditure, depreciation and amortization, and impairments" and the information on non-current assets under "Net assets." In the prior year, this item also included payments for the acquisition of subsidiaries in the amount of €2.1m.
Free cash flow in €m, multi-year comparison
The quarterly figures were not audited by the auditor
Free cash flow (cash inflow from operating activities – cash outflow from investing activities) increased slightly to €41.9m (prior year: €39.5m). The free cash flow margin (free cash flow in relation to revenue) was 8.4% (prior year: 8.3%).
The net cash outflow from financing activities amounted to €47.6m (prior year: €44.0m), mainly consisting of the €32.1m dividend payout (prior year: €29.4m). In addition, this item primarily included the repayment of interest-bearing loans and lease liabilities and payments for share buybacks.
Cash funds decreased to €-26.5m as of December 31, 2025 (prior year: €-19.5m), mainly due to the higher net cash outflow from financing activities compared to the prior year. This is made up of cash and cash equivalents in the amount of €17.5m (prior year: €19.5m) and bank overdrafts in the amount of €-44.0m (prior year: €-39.0m). The Company was able to meet its payment obligations at all times.
2.4 Employees
Average number of employees by year, multi-year comparison
The average number of employees at WashTec during the year was 1,811 (prior year: 1,715). The number of employees increased by 91 to 1,861 as of December 31, 2025 (prior year: 1,770). The increase in the number of employees was mainly due to capacity expansion in service and sales.
The WashTec Group ensures that its employees receive adequate wages. In Germany, with the exception of AUWA-Chemie GmbH, the WashTec Group is subject to collective agreements with trade union IG Metall. Collective agreements with trade union IG Bergbau, Chemie, Energie serve as benchmarks at AUWA-Chemie GmbH.
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2.5 WashTec AG (supplementary disclosures in accordance with the German Commercial Code)
WashTec AG, domiciled in Augsburg, is the parent company of the WashTec Group and such is responsible for the strategic corporate management and control of the subsidiaries. Since the Company does not have any operations of its own, its results of operations, financial position and cash flows are determined by the business performance of its subsidiaries.
The business performance of WashTec AG to a large extent corresponds to that of the WashTec Group, which is described in detail under "Group business performance." The forecast of an increase in net income (+13.2%) for WashTec AG in the upper single-digit to low double-digit percentage range for the fiscal year 2025 was met, mainly due to the better business performance at the subsidiaries.
Earnings
| Income statement of WashTec AG (condensed) | ||||
|---|---|---|---|---|
| in €m | 2025 | 2024 | Change | |
| absolute | in % | |||
| Revenue | 6.4 | 3.6 | 2.8 | 77.8 |
| Personnel expenses | 3.8 | 3.2 | 0.6 | 18.8 |
| Other operating expenses | 3.2 | 3.2 | 0.0 | 0.0 |
| Investment result | 51.4 | 44.6 | 6.8 | 15.2 |
| Net income for the period | 37.7 | 33.3 | 4.4 | 13.2 |
Revenue at WashTec AG - HGB-basis, meaning as measured in accordance with the German Commercial Code - increased to €6.4m (prior year: €3.6m) and mainly related to management costs charged on to subsidiaries.
WashTec AG's personnel expenses (HGB-basis) of €3.8m (prior year: €3.2m) include Management Board remuneration and personnel expenses for the Legal and Internal Audit functions. In addition, this item included the expense for the employee bonus in recognition of the successful fiscal years 2024 and 2025. In the prior year, it included one-off expenses in connection with the change of CEO.
Other operating expenses (HGB-basis), at €3.2m, were at the same level as in the prior year (€3.2m).
The investment result (HGB-basis) comprises income under control and profit (loss) pooling agreements and under a profit transfer agreement in the total amount of €51.1m (prior year: €44.4m) and interest income in the total amount of €0.3m (prior year: €0.2m).
Net income for the period (HGB-basis) increased to €37.7m (prior year: €33.3m).
Financial position and cash flows
| Balance sheet of WashTec AG (condensed) | ||||
|---|---|---|---|---|
| in €m | Dec 31, 2025 | Dec 31, 2024 | Change | |
| absolute | in % | |||
| Non-current assets | 128.1 | 128.2 | -0.1 | -0.1 |
| Receivables and other assets | 50.3 | 39.9 | 10.4 | 26.1 |
| Equity | 167.2 | 163.1 | 4.1 | 2.5 |
| Provisions | 10.4 | 3.9 | 6.5 | 166.7 |
| Liabilities | 1.0 | 1.1 | -0.1 | -9.1 |
| Balance sheet total | 178.6 | 168.0 | 10.6 | 6.3 |
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Non-current assets (HGB-basis) mainly consisted of shares in affiliated companies in the amount of €128.1m (prior year: €128.2m). Management subjected shares in affiliated companies to an annual impairment test. No impairment was identified.
The receivables and other assets (HGB-basis) in the amount of €50.3m (prior year: €39.9m) primarily resulted from general clearing transactions with affiliated companies under control and profit (loss) pooling agreements and a profit transfer agreement. Also included were receivables from tax authorities.
Equity (HGB-basis) was €167.2m (prior year: €163.1m). This yields an equity ratio of 93.6% (prior year: 97.1%).
Provisions (HGB-basis) stood at €10.4m (prior year: €3.9m) and mainly related to taxes, legal and consulting expenses, auditing costs, Management Board remuneration and Supervisory Board remuneration. The increase in provisions is mainly due to tax provisions.
WashTec AG is financed by means of cash pooling with WashTec Cleaning Technology GmbH.
Opportunities and risk report
As the Group parent company, WashTec AG's main opportunities and risks are derived from the opportunities and risks of its operating subsidiaries. WashTec AG is integrated into the Group-wide risk management system. Further information can be found in the opportunities and risk report. That section also provides a description of the internal control system as required under Section 289f (1) HGB.
WashTec AG's main risks relate to the recoverability of the carrying amount of investments. In addition, there are risks associated with the amount of the profits and losses from subsidiaries under the control and profit (loss) pooling agreements and the profit transfer agreement.
Other disclosures*
The salient features of the remuneration system for the Management Board and the Supervisory Board are explained in the Notes to the Consolidated Financial Statements (Note 37). In addition, detailed descriptions of the remuneration system and the remuneration of the Management Board and Supervisory Board are contained in the Remuneration Report, which is published on the Company's website under "Remuneration of Board of Management and Supervisory Board."
The Corporate Governance Statement is reprinted in section 8 and published on the website https://ir.washtec.de.
Guidance
The expectations described under "WashTec business development" in the Outlook for the WashTec Group (section 4.1) also apply to the business development of WashTec AG as the ultimate Group parent company. The financial performance indicator for the business development of WashTec AG is net income for the period.
*This paragraph was not subject to an audit by the auditor.
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3
Report on subsequent events
Significant events after the balance sheet date
The company is closely monitoring the recent escalation of the Middle East conflict and the associated military conflicts throughout the Gulf region. Due to the low revenues generated by the WashTec Group in the affected region and the fact that it has neither production sites nor other assets there, the direct financial impact on revenues and earnings is considered to be insignificant. Nevertheless, the ongoing tense security situation could have a significant impact on overall economic development outside the region and, in particular, lead to increases in raw material and energy prices. Assuming stable supply chains, the resulting indirect effects are also currently considered to be insignificant for the WashTec Group. The situation is currently too volatile to make a definitive assessment of the possible consequences on a global basis.
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4 Outlook, opportunities and risk report
4.1 Outlook
This outlook report takes into account the facts and events that were known at the time of preparation and that could impact the expected development and business performance of the WashTec Group.
4.1.1 Business policy and strategy
In fiscal year 2026 and beyond, the WashTec Group will continue to pursue the goal of profitable, largely organic growth. On May 5, 2025, the WashTec Group's Augsburg site hosted a hybrid event, both in-person and online, themed "Bright Future – Discover, Connect, Experience." The event showcased new products along with the Company's strategic refinement from equipment manufacturer to solutions provider. In essence, the focus is not on a single product or item of equipment, but on the interoperation of our products and services in integrated solutions. The aim is to prioritize value-added services – with outstanding service packages, digital products and attractive subscription-based business models. Alongside our main product, SmartCare Connect, which will be the backbone of the WashTec Group product family over the next few years, this evolutionary development is primarily focused on our digital Smart Services solutions for customers. These allow for new, highly convenient ways of operating vehicle wash equipment, including unlimited carwash plans, remote maintenance for staff-free operation, and new analytics for operators providing transparency on use figures, utilization levels and energy consumption. Stronger, digital customer retention and a sustainable product range are expected to lead to higher average wash frequencies and so contribute to rising revenue for WashTec in the Service and Consumables business lines.
4.1.2 Markets and products
The WashTec Group intends to continuously increase its presence and market share in the Group's main sales regions and product and service segments. The geographical focus of activities is on the European and North American markets. WashTec generates a significant portion of revenue in Europe and aims to further extend its market position there. In addition, in the medium and long term, the Company plans to significantly increase market penetration in North America with targeted products and services, thus contributing to revenue growth.
4.1.3 General economic conditions
A detailed description of overall economic development can be found in section 2.1 of the management report. The WashTec Group has prepared its outlook against the general backdrop of continuing uncertainty in the economic and geopolitical environment. Business development in 2026 is hard to predict due to the difficult geopolitical situation, particularly developments in the Middle East and the associated potential increases in raw material and energy prices and trade policy uncertainties. On the other hand, WashTec sees positive signals for the development of its markets, particularly as a result of the decline in worldwide inflation carrying expectations of a more favorable financing environment and fiscal policy support measures.
4.1.4 WashTec business development
The outlook for fiscal year 2026 is subject to uncertainties that could have a material effect on the planned development of key performance indicators.
Based on a largely stable price level on the sales and procurement side and a larger order backlog at the end of 2025 than in the prior year, despite a stagnating carwash market, the WashTec Group expects profitable revenue growth for 2026. This forecast does not make allowance for any further significant worsening of the economic situation due to the developments in the Middle East.
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The central aim of the WashTec Group is to continuously improve operating performance. The focus for 2026 will be on optimizing and redesigning key processes, product optimization, and investing in the development of digital solutions (EasyCarWash PRO, WashNow, CarWash Assist, etc.). WashTec sees the integration of the entire product and service portfolio - Equipment, Service and Consumables, embedded in digital solutions - as a source of major growth potential. In regional terms, we will focus on our core regions of Europe and North America in order to better exploit the market potential available there.
Specifically, the Management Board expects in its guidance that the Group-level key performance figures will develop as follows:
For the Group in fiscal year 2026, WashTec expects revenue growth in the mid-single-digit percentage range (2025: €498.6m) and an increase in EBIT that is disproportionately higher than revenue growth (i.e. in the upper single-digit to low double-digit percentage range) (2025: €48.9m).
Revenue in the Europe and other segment is essentially expected to develop in line with the targeted Group performance, whereas a relatively stronger increase is expected in the North America segment. WashTec expects EBIT for both segments to increase in the low single-digit million range.
WashTec expects higher capital expenditure in 2026. As a result, the Company expects a free cash flow of between €35m and €45m (2025: €41.9m).
WashTec aims to employ the capital available to it profitably and efficiently. Return on capital employed (ROCE) is our central measure of capital efficiency. For the coming year, the Company expects ROCE to increase by 0.5 to 2.0 percentage points (2025: 24.8%).
The accident rate (work-related accidents per million hours worked) in fiscal year 2026 is expected to be below the low level of 6.4 seen in fiscal year 2024.
| Revenue | Mid single-digit percentage increase |
|---|---|
| EBIT | Disproportionate increase in excess of revenue growth |
| Free cash flow | €35m - €45m |
| ROCE | Continuous increase, by 0.5-2.0 percentage points |
| Accident rate | Below the (low) level of fiscal year 2024 |
Earnings in the separate financial statements of WashTec AG depend to a substantial extent on the profit transfers from subsidiaries. The key financial performance indicator is net income for the period. The EBIT forecast described for the WashTec Group, taking into account interest and taxes, therefore also applies to the business development of WashTec AG as the ultimate Group parent company.
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4.2 Opportunities and risk report
Risks are possible future developments or events that could lead to negative deviations from the Company's forecasts or targets.
Opportunities are possible future developments or events that could lead to positive deviations from the Company's forecasts or targets. A potential positive impact of a risk is also classified as an opportunity.
The WashTec Group's international business activities give rise to opportunities and risks that are inextricably linked with its business. To address these opportunities and risks in a timely and controlled manner, the Company's key business processes are subject to an internal monitoring and control system. This enables timely action to be taken as necessary.
4.2.1 Opportunities and risk management
Risk management
Risks are identified, analyzed, assessed, managed, documented and communicated, and these activities monitored, using a uniform, Group-wide, multi-level risk management system. The purpose of this system is to identify risks posed by future events on the basis of short-term and mid-term planning (with both a 12-month and a two-to-three-year advance planning horizon) and to initiate any action needed to adequately address them. The aim of including risk analysis beyond the next twelve months is to aid in timely identification of potential future risks even if their short-term impact is not material. In the opinion of the Management Board, this risk early warning system is capable of suitably identifying all material and going-concern risks. The risk management system used by the Group allows systematic risk recording, documentation, assessment and aggregation on the basis of recognized statistical methods.
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In addition to ad-hoc risk reporting, WashTec's risk management system provides for a half-year inventory of all identified risks. These are required to be reported by divisional heads and are analyzed within the risk management system. Risks are assessed for EBIT impact – either as an absolute maximum impact figure or as a three-point estimation of a best-case, expected and worst-case impact figure – and for probability of occurrence and the effectiveness of possible countermeasures. Risks are assessed on a uniform basis. The EBIT impacts are presented in a gross/net analysis. The gross figure is the amount before any risk-mitigation measures taken. These may comprise, for example, existing provisions, insurance policies, or planned projects and activities for preventive risk minimization. Responsibility for deciding action to be taken, implementing it and monitoring its effectiveness lies with heads of divisions. The risk management system is also audited annually by Internal Audit.
In the risk analysis, all net individual risks are simulated using Monte Carlo simulation. They are simulated and aggregated both at Group level and at risk category level. Any correlations are taken into account. The simulation is used to determine both the expected loss (net) and value-at-risk with a confidence level of 95%. Value-at-risk represents the WashTec Group's overall potential risk and is used to determine risk-bearing capacity. Risk-bearing capacity is assessed in relation to Group liquidity, equity and operating earnings (EBIT). This is done by comparing value-at-risk with the corresponding risk coverage potential.
In the analysis of individual risks, individual risks and opportunities that have a similar cause-effect relationship are aggregated in the risk analysis.
The simulated expected loss (net) per risk category is classified according to financial impact and probability of occurrence as follows:
Financial impacts on Group EBIT in €m:
| 1 | Insignificant | < 0.5 |
|---|---|---|
| 2 | Minor | 0.5 < 5.0 |
| 3 | Material | 5.0 < 10.0 |
| 4 | Serious | 10.0 < 20.0 |
| 5 | Existential threat | ≥ 20.0 |
The probability of occurrence is indicated as follows:
| 1 | Very unlikely | 1 < 15% |
|---|---|---|
| 2 | Unlikely | 15 < 40% |
| 3 | Possible | 40 < 60% |
| 4 | Likely | 60 < 85% |
| 5 | Very likely | 85 - 99% |
There were no changes in risk classification compared with the prior year.
Based on the combination of these two factors, all risks, aggregated by risk categories, are classified by threat potential as negligible (N), relevant (R), material (M) or threat to survival (S). The further management of risks follows on this basis.
Risk matrix
Probability of occurrence
| Impacts | 1 < 15% | 15 < 40% | 40 < 60% | 60 < 85% | 85 - 99% |
|---|---|---|---|---|---|
| Existential threat | R | M | M | S | S |
| Serious | R | R | M | M | M |
| Material | R | R | M | M | M |
| Minor | N | R | R | R | M |
| Insignificant | N | N | R | R | R |
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Opportunity management
The purpose of opportunity management is to identify, assess and manage positive future potential at an early stage and to take suitable measures for the implementation of new strategies and innovations. The identification and exploitation of opportunities (opportunity management) is an ongoing task of business geared to securing the long-term success of the Company and capitalizing on short-run advantages.
Opportunities are collated, assessed and, as far as possible, materialized for all divisions in regular budget planning and update sessions as well as in management meetings.
4.2.2 Opportunities and risks
The opportunities and risks that could have a material impact on the development of the WashTec Group as of the December 31, 2025 balance sheet date are described in the following. With regard to the escalation in the Middle East, the Company does not expect any significant direct financial impact.
Overall economic development
Risks
Uncertainty and near unpredictable changes in the global economy, financial markets and the political situation may adversely affect the investment behavior of certain customer groups. Market access and supply conditions can also change at short notice.
In view of how the economic situation is currently developing, including the geopolitical tensions and economic uncertainties, there continue to be risks for the business development of the WashTec Group. The assessment in this regard has improved slightly compared to the prior year. Nevertheless, unpredictable US tariffs and geopolitics, as well as potential countermeasures by other countries, could negatively impact material price trends or customer investment behavior.
The difficult market environment and instability in Central and Eastern Europe due to the war in Ukraine may also continue to have a negative impact on customer investment behavior. However, the risks in this context are assessed to be smaller than in the prior year.
Following the recent escalation of the Middle East conflict, the strained security situation and the associated risks for energy and commodity markets continue to give rise to uncertainties regarding the development of material prices and the availability of key intermediate products. Assuming largely stable supply chains, the indirect effects resulting from this situation are assessed as not material to the Group's business performance. Direct effects on the Group's business development are likewise considered immaterial, given the low proportion of revenue generated in the affected region.
Opportunities
The easing of inflation and interest rates seen over the course of the year could lead to increased customer demand in both Europe and North America. Should the current volatile US tariff policy stabilize, this could also have a positive impact on customers' investment behavior.
Climate and environment
Risks
Climate change, regional droughts and water scarcity, increasing road congestion, rising fuel costs, the proliferation of inner-city vehicle-free zones and greater general environmental awareness could all lead to fewer vehicles on the road in order to protect the environment or comply with regulations. Such a trend could diminish carwash use and, accordingly, reduce capital spending on vehicle wash equipment.
Car washing bans due to droughts, as seen especially in Southern and Western Europe during past years, could have a negative short-term effect on the WashTec Group's service and consumables business and negatively impact customer investment patterns in the medium to long term. The impacts of climate change can also result in such bans on car washing being enshrined in law in the near future. Climate change, on the other hand, may
WashTec Management Report // Outlook, Opportunities and Risk Report Financial Statements Further Information
favor unstable weather conditions, which could have a negative impact on carwash volumes and therefore on the Group's service and consumables business.
The WashTec Group does not currently consider shifts in consumer preferences towards low-emission or zero-emission products, especially vehicles, to be significant with regard to the carwash business model, as more conscious consumer behavior only affects the choice of means of propulsion and is of secondary importance for how frequently cars are washed.
Opportunities
The scarcity and rising cost of fresh water as a resource could drive increased demand for automated vehicle washing. This is far more environment-friendly if the carwash has a water treatment system. According to the system, wash program and vehicle type, water recovery systems that recirculate wash water can significantly reduce mains water consumption.
Stricter environmental legislation results in the long term in rising demand for vehicle wash equipment with water recycling systems. Similarly, rules and regulations such as the prohibition of hand car washing could have a positive effect on demand for carwash equipment.
WashTec contributes significantly to environmental sustainability as a pioneer in the development of eco-friendly carwash chemicals.
Customers, competition and market
Risks
A freeze on capital spending by individual major customers or the listing of other suppliers due to major customers launching new bid requests for framework supply agreements could lead to a decrease in revenue and/or to losses of market share for WashTec in virtu-
ally all regions. Based on the negotiations completed in fiscal year 2025, the Group's overall risk exposure in relation to major customers is estimated to be significantly lower than in the prior year.
Given the intensive competition in the industry, there are potential risks associated with price- and product-based competition that could lead to increased price pressure in certain markets or market segments. WashTec has implemented a systematic market tracking system. Revenue risks that could arise from a potential decline in demand are monitored on an ongoing basis. Appropriate measures are taken as necessary to adapt products, optimize the product range and adjust capacity.
A further risk exists if major customers sell some or all of their (filling station) networks. The acquisition of such stations or networks by multiple buyers could mean increased selling effort and render existing contacts with decision-makers obsolete. Similarly, the termination of partnerships with distributors or service providers could lead to increased costs for sales, service or installation. Temporary constraints on service performance, such as delays in hiring technicians, could also negatively impact revenue growth in the equipment business.
Opportunities
In our opinion, the trend towards high-quality automated car washing will continue, including in regions outside of the developed markets. The Company's solid structure also allows it to invest in new products and markets. WashTec's connected systems launched on the market in recent years have paved the way for the Company's successful transformation into a solution provider. The digital services based on those systems enable customers to sell more washes under subscription plans. In this way, WashTec could successfully solve the key customer challenges of stagnating wash volumes. As well as additional service and consumables revenue, this can also lead to added growth potential with regard to the installed base of equipment in the market. Local presence with the Company's
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own production plant in the North America region could lead to a positive outcome above the internally budgeted figures in the mid-term. Increasingly global procurement activities make it possible to continue unlocking further potential for efficiency gains in the procurement and production of individual components.
Closer collaboration with our independent distributors in countries where WashTec does not have subsidiaries of its own could increase sales volumes in growth regions.
Capital expenditure
Capital expenditure decisions are based among other things on assumptions and estimates about future developments. The assessment of risks and opportunities plays a key role from an early stage in the review of potential capital expenditure.
Risks
There is a risk of the assumptions or estimates made about future market developments not materializing as expected, leading to a misallocation of investment spending or development projects not resulting in the expected contributions to earnings. Such misallocation could have a negative impact on the financial position, financial performance and cash flows of the WashTec Group due to interest expense for tied-up capital and/or due to impairments. A significant increase in the duration of investment projects can also have a negative impact on the Company's earnings as a result of tied-up resources and/or cost overruns. To adequately address such risk, the Company has a detailed policy for approving capital expenditure and related spending.
Opportunities
Capital expenditure presents numerous opportunities. Depending on the type of capital expenditure, these include opportunities to strengthen WashTec's market and competitive position and/or to improve earnings. Investment in digitalization in particular could
open up new opportunities in terms of products and solutions for our customers and thus generate a competitive advantage. Smart technology optimizes carwash operation, for example, and allows operators to precisely meet customer needs. Remote services can also be used to increase machine availability and enhance carwash profitability.
Innovations and patents
Risks
Product innovations carry the risk of not being taken up by the market as expected. This could result in innovations not performing and generating revenue as expected and in them falling short of market expectations. To avoid this, WashTec keeps a close watch on new market launches and tests product effectiveness at an early stage.
For any company, launching new products on the market involves additional effort and risks. As well as the additional product placement effort and the aforementioned customer acceptance risk, there is further risk potential in managing the phase-out of existing products and in quality-related problems that only become apparent after market launch.
Increasing requirements for compliance with technical and country-specific standards result in higher financial and technical expense, but, as in the prior year, this is not considered material to the Group's business. WashTec is represented in relevant standard-setting committees in order to be informed about regulatory developments at an early stage.
Innovations by competitors, developments in the automotive industry and the emergence of new substitute technologies in related industries can have a significant and long-term impact on demand for WashTec products. However, the associated risks are primarily seen in the medium to long term and are therefore of secondary importance to risk assessment for the coming fiscal year.
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Opportunities
The WashTec Group's research and development activities are aimed at adding to the existing product range, developing new wash systems and quickly and efficiently meeting individual customer requirements. Innovative products could outperform customer expectations, generate new demand and win new customer groups or lead to gains in market share among existing customer segments.
WashTec has a large number of patents and licenses that are highly important to the Group's business and can therefore confer a competitive advantage.
IT security
Cyber risks are all risks to which computer and information networks and all IT-assisted business and production processes are exposed. The use of IT inevitably entails risks, which cannot ultimately be ruled out, for the stability of business processes and for the availability, confidentiality and integrity of information and data. Cyberattacks and ransomware attacks continue to grow in number and professionalism around the world. The risks relating to IT security continue to be classified as material.
IT security, quality and process risks can arise in connection with new product launches and with improvements in internal processes and the introduction of new IT systems. The Company's operating processes critically depend on continuous availability of all technical systems. Were this to be at risk, it would have an overall negative impact on WashTec.
WashTec has taken appropriate measures (training, implementing improved safety systems, etc.) to reduce these risks as far as possible. In the opinion of the Company, the stability of the IT systems in recent years indicates that they are robust. Significant effort and continuous investment will nevertheless be made in the coming year to further reduce these risks.
Quality and processes
Risks
Quality problems in the development or production of carwash equipment can result in subsequent costs for the Group or have a negative impact on future equipment sales volumes. The potential impacts of this are classified as lower than in the prior year. Any defects or problems are continuously recorded, monitored and promptly corrected by quality assurance.
Opportunities
Continuous improvement of business processes and the use of new technologies can have a positive impact on customer satisfaction. They may also lead to process efficiency gains that have not been taken into account in normal planning.
Suppliers
Risks
The purchase of raw materials, components or services involves risks related to delivery delays, insufficient product availability, quality defects and price fluctuations. The risk assessment in this regard has decreased significantly compared to the prior year, although geopolitical and tariff policy tensions and the associated economic uncertainties could still have a negative impact on material price trends. WashTec counters these risks with intensive market observation combined with a long-term purchasing strategy and the listing of alternative suppliers.
Moreover, the continued shortage of skilled labor in the logistics industry and uncertain transportation conditions – due to factors such as the volatile situation in the Middle East – could lead to rising transportation and logistics costs. Active inventory management and the conclusion of long-term contracts with logistics service providers counteract these risks.
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Opportunities
Competition among suppliers and their innovation potential makes it possible to achieve both technical and price improvements for the procurement of products or services.
Increasingly global procurement activities make it possible to continue unlocking further potential for efficiency gains in the procurement and production of individual components.
Capacity risks
Demand fluctuations and varying production capacity utilization over the course of the year require corresponding capacity adjustments. The fact that sales volumes are higher in the final months of the year creates particular challenges in production planning.
On the basis of internal sales volume planning, capacity risks at the production sites are identified as far as possible and mitigated by the deployment of temporary workers and flexible annual working time arrangements or, in the event of extreme fluctuations, by short time working. A significant shift in the course of the fiscal year could result in sales risks due to potential difficulties in adjusting capacity with temporary workers. The Group currently sees no noteworthy risks in this regard.
Demand growth is met by continuous improvement of production processes and by timely capital expenditure on capacity expansion.
Risks of takeover or changes in ownership structure
If its stock market valuation fails to sufficiently reflect the Company's long-term intrinsic value or the WashTec Group's performance sparks the interests of new investors, then this could lead to significant changes in ownership structure or a takeover.
Such events may lead to changes in the WashTec Group's established strategy, the composition of its executive bodies and its previously communicated expectations. Some of the WashTec Group's contractual agreements (such as loan agreements) include a change of control clause.
Financial and legal risks
The base interest rate on the WashTec Group's existing financing arrangements is variable. Interest rate rises could negatively impact the WashTec Group's earnings. In view of the interest rate cuts in the past year and positive forecasts for the coming year, the Group does not anticipate any significant increases in the key interest rate in the short term. Increased utilization of the credit lines, combined with a high level of interest rates, would pose the risk of higher financing costs.
WashTec is also exposed to risks arising from different product-specific and country-specific rules, regulations and laws that affect its business activities and processes. There is a possibility that new litigation may arise and that existing litigation with contracting parties may be resolved. The Group manages these risks by involving the legal department in critical legal transactions at an early stage, by engaging external experts as necessary and by recognizing appropriate provisions. There is also a risk of compliance or data protection breaches, which could have a negative reputation impact on the Group. These risks are systematically minimized through comprehensive internal policies and a structured training program.
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Exchange rate changes
Risks
Due to transactions with subsidiaries, exchange rate changes could affect operating performance. In addition, exchange rate fluctuations may affect the Group's income statement through the measurement of open foreign currency positions. To mitigate such effects when necessary, WashTec hedges against major risk with derivatives. The operational risk arising from individual transactions in foreign currencies is immaterial to the Group due to the small volume of such transactions.
Opportunities
A weakening of the euro could lead to positive currency effects on revenue in foreign currencies.
Liquidity risks
Ensuring that the subsidiaries are solvent at all times is essential for WashTec. The implemented cash management systems enable potential shortfalls to be identified in good time and appropriate action to be taken. Unutilized credit lines ensure the supply of liquidity.
Liquidity risk could arise should cash be insufficient to meet financial obligations on a timely basis, for example due to payments not included in cash budgeting.
Existing credit lines can be extended in the event that the development of the business results in additional financing requirements.
WashTec considers itself well positioned with regard to liquidity risks. With the currently available credit lines, the Company has sufficient liquid resources and borrowing lines to be able to be flexible and also to invest in future growth.
Credit and default risks
The WashTec Group exclusively conducts business with creditworthy third parties. To minimize credit risk, order limits are imposed in cases where customers do not have first-class credit standing. For new customers, the Company requests evidence of credit standing or financing. The recognized allowances for trade receivables are considered sufficient to cover the actual default risk. There is no material credit risk concentration within the Group. For selected customers, insolvency coverage is taken out with reputable credit insurers when receivables exceed a certain level.
Tax risks
Ongoing tax audits at Group companies may lead to corresponding tax risks that, given the international nature of the WashTec Group's business activities, cannot be ruled out until the tax audits have been concluded. Compared to the prior year, the prevailing risks have decreased now that tax audits have been concluded in a number of countries.
The WashTec Group recognizes deferred taxes mostly in relation to temporary differences. Changes in tax legislation that affect the tax rate could result in expense from the remeasurement of recognized deferred tax assets and in higher income taxes and could thus adversely affect consolidated equity and/or earnings per share.
Employees
WashTec is highly dependent on qualified and specialized employees, especially in development, customer care and carwash equipment programming and operation. The unexpected loss of employees, changes in the age structure of the workforce or difficulties finding qualified employees could have an adverse effect on WashTec's development. This is notably exacerbated by the current shortage of skilled labor. The situation has eased in this regard relative to the prior year.
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4.2.3 Overview of corporate risks
The following table shows the risks aggregated by risk category:
| Overall assessment | Change | |
|---|---|---|
| Overall economic development | relevant | → |
| Climate and environmental risks | relevant | → |
| Customers, competition and market | relevant | → |
| Capital expenditure risks | relevant | → |
| Innovations and patents | relevant | → |
| IT security* | material | → |
| Quality and process risks* | negligible | ↓ |
| Supplier risks | relevant | → |
| Capacity risks | negligible | → |
| Takeover risks | negligible | → |
| Financial and legal risks | relevant | ↑ |
| Currency risks | negligible | → |
| Liquidity risks | negligible | → |
| Credit and default risks | negligible | → |
| Tax risks | negligible | → |
| Employee risks | relevant | → |
*In the previous year, these risks were reported together in the category "IT security, quality, and process risks." The comparative information was determined based on the new structure.
4.2.4 Overall risk assessment
The established risk management system is appropriate in the assessment of the Management Board and is subject to continuous improvement. The solid business model also limits business risks and opens up additional opportunities. Aggregation of the most significant individual risks across all corporate divisions and functions provides an indication of the Group's overall risk assessment, even though it is considered unlikely that the individual risks will materialize simultaneously. The cumulative expected loss (net) across all individual risks is €12.2m as of the end of 2025 (prior year: €18.7m) and is thus down on the prior year, mainly due to significantly lower risks in key account business following successful contract signings and to reduced risks in terms of material price trends and supplier relationships.
Based on the individual risks presented above, the overall assessment is as follows:
The total number of risks that have a significant impact on the WashTec Group is at the same level as in the prior year.
WashTec continues to face a dynamic market environment with diverse risks and opportunities. The assessment with regard to risks associated with overall economic development has improved slightly on the prior year. Nevertheless, unpredictable US tariffs and geopolitics, as well as potential countermeasures by other countries, may have negative impacts on material price trends or customer investment behavior. Overall, supplier-related risks are rated lower than in the prior year. With regard to customers, competition and the market, risks have decreased significantly due to a slight fall in interest rates and as a result of successful contract negotiations in the key account business. The impacts of climate change and environment-related regulatory requirements mainly present challenges and risks in the medium to long term. However, the Group also sees opportunities here due to rising demand for sustainable and resource-efficient wash solutions. Capital expenditure on innovative technologies and digitalization creates additional potential for strengthen-
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ing the Company's competitive position. IT security risks remain material. The ongoing threat of cyberattacks and increasing regulatory requirements continue to demand high security standards and continuous investment in IT security measures.
Based on the findings of the risk management process, the Management Board is not currently aware of any risks that could cast doubt on the Company's ability to continue as a going concern.
Responsibility for monitoring the internal control and risk management system lies with the Audit Committee of the Supervisory Board of WashTec AG. Internal Audit monitors compliance with the legal framework and internal Group policies for the Group's control and risk management system. Measures are initiated in collaboration with the relevant management as needed. The auditor examines the risk early warning system integrated into the risk management system with regard to its fundamental suitability for identifying going concern risks. In addition, the auditor reports to the Audit Committee and the Supervisory Board on any material weaknesses identified in the internal control and risk management system as it relates to financial reporting.
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5 Internal control system and risk management system
WashTec's risk management system (RMS) is described in the Risk Report under 4.2. Opportunities and risk report.
The internal control system (ICS) comprises all systematically defined controls and monitoring activities. It monitors principles and procedures using preventive and detective controls.
An effective and efficient internal control system is critical to the successful management of risk in business processes. The ICS covers all WashTec companies. The scope of activities to be performed by each entity varies, depending among other things on the entity's materiality to the consolidated financial statements and the specific risks associated with it. Overall responsibility for the ICS lies with the Management Board. In the manner of a compliance management system, the purpose of WashTec's ICS is to ensure effectiveness and efficiency in business activities, orderly and reliable accounting, and compliance with the legal provisions and requirements relevant to the WashTec. Accordingly, WashTec's internal control system covers all key business processes and goes beyond controls in the accounting process.
In the accounting process, various monitoring measures and controls help to ensure, for example, that the annual financial statements and the consolidated financial statements are prepared in accordance with requirements. WashTec uses a uniform Group consolidation system to ensure consistency. This also minimizes the risk of misstatements in accounting and external reporting. Adequate functional segregation and application of the dual control principle reduce the risk of fraudulent conduct. The coordinated processes, systems and controls provide sufficient assurance that the accounting process complies with IFRS, the German Commercial Code (HGB) and other accounting-related requirements and laws.
Group-wide accounting policies ensure the uniformity of accounting throughout the WashTec Group. New accounting requirements and changes in existing accounting requirements are examined for their impact on the WashTec Group and applied on a timely basis.
WashTec regularly performs system backups in the case of relevant IT systems in order to prevent data loss and system downtime as far as possible. The security policy also includes in-built system controls, manual spot checks by experienced staff, role-based permissions and physical access restrictions.
WashTec continuously develops the requirements for the internal control system and adapts the control landscape to changing processes. Internal Audit is involved in the entire process and regularly reviews the effectiveness of the internal control system as part of the risk-based annual audit plan.
WashTec's Management Board evaluates the output of the RMS and the ICS at Management Board meetings and conducts an annual assessment of their appropriateness and effectiveness. The Management Board has no indication that the RMS and ICS (including the CMS), taken as a whole, were not adequate or effective in any material respect as of December 31, 2025. However, as part of a continuous improvement process, the Management Board recognizes the need for ongoing optimization to ensure effectiveness and efficiency. Irrespective of this, there are inherent limitations to the effectiveness of any RMS or ICS. No system considered to be adequate and effective is guaranteed to identify all risks or rule out process or control violations in all circumstances. The Audit Committee is systematically integrated into WashTec's RMS and ICS (including the CMS). In particular, the Audit Committee monitors accounting and the accounting process as well as the appropriateness and effectiveness of the ICS and the RMS.*
*This paragraph was not subject to an audit by the auditor.
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6 Risk reporting in relation to the use of financial instruments
The main risks for the WashTec Group arising from derivative financial instruments comprise credit, liquidity and market price risks. Company policy is to avoid or limit such risk as far as possible. The management of interest rate, currency, liquidity, credit and default risk has already been described in the risk report. When necessary, the Company also considers the use of derivative financial instruments to hedge market price risks. Interest rate and currency risks are the main market price risks. At the inception of a hedging relationship, both the hedging relationship and the Group's risk management objectives and strategies with regard to the hedge are formally designated and documented. This is described in detail in the Notes to the Consolidated Financial Statements. In accordance with Group policy, there is no trading in derivatives for speculative purposes.
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7 Takeover-related disclosures
Disclosures in accordance with Section 289a and 315a HGB: Explanatory report by the Management Board
The following text contains the disclosures required under Section 289a and 315a HGB.
Subscribed capital
The Company's subscribed capital of €40,000,000 is divided into 13,976,970 no-par-value bearer shares that each grant the same rights and obligations, including the same voting rights. There are no different classes of shares. The Management Board is not aware of any restrictions relating to voting rights or the transfer of shares. There are no shares conveying special control rights.
Restrictions regarding voting rights and the transfer of shares
In accordance with Section 71b of the German Stock Corporation Act (AktG), the Company has no rights in respect of treasury shares it acquires. In all other respects, each share has one vote. To the Management Board's knowledge, there are no restrictions regarding voting rights or the transfer of shares.
Direct and indirect shareholdings
To the knowledge of the Management Board, 25.64% of the Company's shares (as of December 31, 2025) are held by shareholders whose stakes are below the notification threshold. According to the notifications filed under the German Securities Trading Act (WpHG), a direct shareholding above 10% of voting rights is held by EQMC ICAV (formerly EQMC Europe Development Capital Fund plc.), Ireland (15.14%). According to the notifications filed under the WpHG, an indirect shareholding above 10% of voting rights is held by Alantra EQMC Asset Management, SGIIC, S.A., Spain (20.36%), as the investment management function of EQMC ICAV and Morgan Stanley, United States of America (10.61%).
According to the notifications filed under the WpHG, a direct shareholding close to but below 10% of voting rights is held by Kempen Oranje Participations N.V., Netherlands (9.60%). A further shareholding close to but below 10% of voting rights is held by Morgan Stanley & Co. International plc, United Kingdom (9.35%).
The Company's shareholding structure is as follows:
Shareholder structure as of December 31, 2025
| 15.14% | EQMC ICAV^{1} |
|---|---|
| 10.61% | Morgan Stanley^{2} |
| 9.60% | Kempen Oranje Participaties N.V. |
| 7.13% | Norman Rentrop |
| 5.13% | Teslin Capital Management B.V.^{3} |
| 4.96% | Dr. Kurt Schwarz^{4} |
| 4.58% | Paradigm Capital Value Fund SICAV |
| 4.49% | Treasury shares |
| 4.00% | Diversity Industrie Holding AG |
| 3.50% | Lazard Frères Gestion SAS^{5} |
| 30.86% | Other |
Source: Notifications pursuant to WpHG
- Alantra EQMC Asset Management, SGIIC, S.A. as investment management function of EQMC ICAV (20.36%)
- Incl. attributable shares to Morgan Stanley & Co. International plc, United Kingdom
- Incl. attributable shares to Gerlin Participaties Coöperatief U.A., Netherlands, as its fund manager
- Leifina GmbH & Co. AG et al.
- Incl. attributable shares to Lazard Small Caps Euro, France
WashTec Management Report // Takeover-related disclosures Financial Statements Further Information
Holders of shares with special control rights
There are no holders of shares with special control rights.
System of control of any employee share scheme
To the Company's knowledge, there are no employees participating in the capital who do not directly exercise their control rights.
Appointment and removal of Management Board members and amendments of the Articles of Association
The appointment and removal of members of the Management Board is governed by Section 84 and 85 AktG and by Section 7 of the Company's Articles of Association. Under Section 7.1 of the Articles of Association, the Management Board consists of one or more members. The number of members of the Management Board is determined by the Supervisory Board.
In accordance with the Company's Articles of Association read in conjunction with the current Management Board rules of procedure, the Management Board currently comprises three members. The Articles of Association do not lay down any special requirements with respect to the appointment and removal of one or all of the members of the Management Board. The Supervisory Board is responsible for appointments and removals. Reappointment or extension of the term of office is permitted.
Amendments to the Articles of Association are made pursuant to Section 179 and 133 AktG and to Sections 9.14 and 9.15 of the Articles of Association. The Company has not made use of the option to lay down further requirements for amendments to the Articles of Association.
Section 9.14 of the Articles of Association reduces the statutory minimum requirements to the extent permitted by law. The Supervisory Board is only authorized to make formal amendments to the Articles of Association.
Powers of the Management Board to issue or buy back shares
Authorized Capital (Section 5.1 of the Articles of Association of WashTec AG)
By resolution of the Annual General Meeting on May 16, 2022, the Management Board is authorized, subject to the consent of the Supervisory Board, to increase the registered share capital on one or more occasions on or before June 30, 2025 by a total amount of up to €8,000,000 (Authorized Capital) by issuing new no-par-value bearer shares in exchange for cash and/or non-cash contributions. The Management Board has not made use of these authorizations.
By resolution of the Annual General Meeting on May 13, 2025, the Management Board is authorized, subject to the consent of the Supervisory Board, to increase the registered share capital on one or more occasions, and also in partial amounts, on or before June 30, 2028 by a total amount of up to €8,000,000 (Authorized Capital) by issuing new no-par-value bearer shares in exchange for cash and/or non-cash contributions. The shareholders must be granted preemptive rights in this connection unless otherwise stipulated. The new shares may also be underwritten by one or more credit institutions, securities institutions or other enterprises within the meaning of Section 186 (5) sentence 1 AktG designated by the Management Board with the obligation to offer them to the shareholders for subscription (indirect preemptive right). However, the Management Board is authorized (subject to the approval of the Supervisory Board) to exclude shareholders' preemptive rights, in particular in the cases set out in Section 5.1 of the Articles of Association of WashTec AG. The Management Board has not made use of these authorizations to date. The authorized capital is intended to enable the Company to raise equity quickly and flexibly at favorable conditions if required.
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Share buy-back
Unless expressly permitted by law, the Company cannot acquire or make use of treasury shares except with authorization from the Annual General Meeting. As the authorization to purchase treasury shares granted by resolution of the Annual General Meeting of April 16, 2022 expired on June 30, 2025, it was resolved at the Annual General Meeting of May 13, 2025 to revoke the existing authorization and to grant the Company renewed authorization to purchase and make use of treasury shares.
By resolution of the Annual General Meeting of May 13, 2025, the Company is authorized to acquire, on or before June 30, 2028 and for purposes other than to trade in the Company's own shares, the Company's own shares in the amount of up to 10% of the share capital of €40,000,000 at the time of the resolution or – if lower – at the time the authorization is exercised. The Management Board may opt to acquire such shares on the stock exchange, by means of a public purchase offer or by means of a public invitation directed at the shareholders of the Company to tender shares for sale. Details on the purchase and use of treasury shares are set out in item 11 of the agenda in the 2025 Invitation to the Annual General Meeting of WashTec AG.
The company made use of this authorization in the 2025 reporting year. On October 23, 2025, the Management Board of WashTec AG, with the consent of the Supervisory Board, resolved to implement a share buyback program with a total volume of up to €5.0 million (total purchase price excluding incidental acquisition costs) and a term ending May 4, 2026 (inclusive) at the latest. The program started on November 6, 2025. As of December 31, 2025, the company had acquired 33,163 of the Company's own shares at an average price of €45.31. Details on the share buyback program are published in the Investor Relations section of the Company's website at www.washtec.de.
As of December 31, 2025, including the 594,646 treasury shares previously held, WashTec AG held a total of 627,809 treasury shares, representing approximately 4.49% of its registered share capital.
Significant agreements subject to a change of control of the company following a takeover bid
Individual contractual agreements entered into by the WashTec Group (such as loan agreements) provide for the option of extraordinary termination in the event of a takeover (change of control). In that event there may also be a change of management.
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Management Report // Corporate Governance Statement
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8 Corporate Governance Statement
In accordance with Sections 289f and 315d of the German Commercial Code
The Management Board and Supervisory Board of WashTec AG operate in accordance with the principles of good and responsible corporate governance. In this Corporate Governance Statement in accordance with Sections 289f and 315d of the German Commercial Code (Handelsgesetzbuch, or HGB), the Management Board, in collaboration with the Supervisory Board, reports on corporate governance at WashTec AG and in the WashTec Group. The Corporate Governance Statement also includes the declaration on the German Corporate Governance Code (the "Code") in accordance with Section 161 of the German Stock Corporation Act (Aktiengesetz, or AktG).
8.1 Declaration of Conformity
The Management Board and Supervisory Board of WashTec AG identify with the objectives of the Code, which promote responsible, transparent corporate management and control aimed at sustainably increasing the value of the Company.
The Management Board and Supervisory Board regularly direct their attention to satisfying the Code's requirements, which comprise principles, recommendations and suggestions. The recommendations of the Code are largely complied with.
The Declaration of Conformity in accordance with Section 161 AktG as submitted jointly by the Management Board and Supervisory Board on May 13, 2025 is reprinted below. All submitted declarations are published in the Investor Relations section of the Company's website at www.washtec.de.
"WashTec AG, Augsburg
Revised Declaration of Conformity of December 19, 2024 pursuant to Section 161 AktG
The Management Board and Supervisory Board submitted the last Declaration of Conformity on December 19, 2024.
The Management Board and Supervisory Board declared therein that since submission of the last Declaration of Conformity on December 19, 2023, WashTec AG has complied with the recommendations of the German Corporate Governance Code (the "Code") issued by the Government Commission on the German Corporate Governance Code as amended on April 28, 2022, and will continue to comply with those recommendations in the future, with the following exceptions:
In the first sentence of Recommendation G.10, the Code recommends predominantly share-based variable remuneration for the Management Board. The long-term variable remuneration under the Long Term Incentive Program (LTIP) contains significant share price-based components. These include the total shareholder return target weighted at 20% under the LTIP 2024-2026, which is used to assess the share price performance over the duration of the three-year incentive period. In light of this, the Management Board and Supervisory Board, as a precautionary measure,
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declare an exception from the first sentence of Code Recommendation G.10. It should be noted in this connection that the LTIP provides for the possibility, subject to fulfillment of specified conditions, of increasing the remuneration under the LTIP by up to a maximum of twofold by means of a corresponding personal investment in WashTec AG shares. This option provides a clear incentive for members of the Management Board to take a stake in the risks and rewards of the share price performance.
Furthermore, the second sentence of Code Recommendation G.10 recommends that granted long-term variable remuneration amounts should be accessible to Management Board members only after a period of four years. The incentive period under the LTIP is three years and is based on the regular term of Management Board contracts, which is likewise three years. In view of this three-year cycle, the Management Board and the Supervisory Board consider a three-year period under the LTIP to be appropriate. Accordingly, the Supervisory Board and Management Board declare an exception from the second sentence of Code Recommendation G.10. The Code is complied with to the extent that one-sixth of the final cash award from the personal investment LTIP component is subject to an obligation to purchase shares with a three-year holding period.
The remuneration system for the remuneration of members of the Management Board of WashTec AG adopted by the Supervisory Board in its
meeting of March 24, 2021 and approved by the Annual General Meeting of WashTec AG of May 18, 2021 applies to all Management Board contracts entered into or renewed after the Annual General Meeting on May 18, 2021. This relates to the contracts of all current members of the Management Board. With regard to the Management Board contracts current at the time of the 2021 Annual General Meeting, these have continued to apply under the conditions there specified. Recommendations G.11 sentence 2 (retention and reclaiming of variable remuneration) and G.13 sentence 2 of the Code (severance payment taken into account against compensation payments in the event of a post-contractual non-compete clause) are not implemented in these Management Board contracts. This is due to the fact that the Management Board contracts current at the time of the 2021 Annual General Meeting were entered into on the basis of the previous remuneration system adopted by resolution of the Supervisory Board on December 19, 2019. The second sentence of Code Recommendation G.18 specifies that any performance-related remuneration for the Supervisory Board should be geared to the long-term development of the Company. The Supervisory Board of WashTec AG is granted annual performance-based remuneration under the Articles of Association and long-term performance-based remuneration in accordance with the resolution of the 2021 Annual General Meeting ("Supervisory Board LTIP"). The current Supervisory Board LTIP applies for the period January 1, 2022 to De
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65
cember 31, 2024. The Management Board and the Supervisory Board are proceeding on the assumption that the recommendation will be complied with and, as a precautionary measure, declare that the maximum achievable cash award under the Supervisory Board LTIP, broken down pro rata for each year, will generally exceed the maximum achievable annual performance-based remuneration.
Supplementary to the Declaration of Conformity of December 19, 2024, the Management Board and Supervisory Board hereby declare as follows:
On May 13, 2025, the Annual General Meeting of WashTec AG approved the revised remuneration system for members of the Management Board (Management Board remuneration system 2025) adopted by the Supervisory Board of WashTec AG on March 25, 2025. The Management Board remuneration system 2025 applies to all Management Board contracts whose term commences, or which are entered into or extended, after the Annual General Meeting on May 13, 2025. The declarations in the above Declaration of Conformity dated December 19, 2024 regarding the first and second sentences of Recommendation G.10 of the German Corporate Governance Code continue to apply without modification with regard to the Management Board remuneration system 2025.
The Annual General Meeting of WashTec AG on May 13, 2025 also resolved to revise Section 8.16 of the Articles of Association regarding the
remuneration of Supervisory Board members. The revised Section 8.16 of the Articles of Association adopted by the Annual General Meeting, which becomes effective upon recording of the amendment to the Articles of Association in the Commercial Register and in accordance with Section 8.16 of the Articles of Association applies effective from January 1, 2025, no longer provides for annual performance-based remuneration. In addition, the Annual General Meeting of WashTec AG of May 13, 2025 adopted a new Long Term Incentive Program for the Supervisory Board (LTIP 2025-2027) for period January 1, 2025 to December 31, 2027. The variable remuneration adopted by the Annual General Meeting in the form of the LTIP 2025-2027 is geared towards the long-term development of the Company and complies with the second sentence of Recommendation G.18 of the German Corporate Governance Code.
Augsburg, May 13, 2025
Management Board and Supervisory Board"
Further information about corporate governance can be found on the Internet at www.washtec.de. Corporate governance statements, corporate governance reports and declarations of conformity that are no longer current remain accessible on the website for a period of at least five years.
要
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8.2 Remuneration report/remuneration system
The remuneration report for fiscal year 2025 and the auditor's opinion in accordance with Section 162 AktG, the current remuneration system for members of the Management Board in accordance with Section 87a (1) and (2) sentence 1 AktG and the current Annual General Meeting resolution on remuneration for the members of the Supervisory Board in accordance with Section 113 (3) AktG are publicly available online in the Investor Relations section of the website www.washtec.de.
In line with the four-year cycle under the German Stock Corporation Act (Aktiengesetz), an updated remuneration system for the Management Board was submitted for approval at the Annual General Meeting in 2025. The 2025 Annual General Meeting approved the remuneration system on May 13, 2025 with a majority of 78%. A resolution on the remuneration of the members of the Supervisory Board was also placed on the agenda for the 2025 Annual General Meeting. The 2025 Annual General Meeting approved the revised Section 8.16 of the Company's Articles of Association and the underlying remuneration system for the members of the Company's Supervisory Board with a majority of 89%. Furthermore, the 2025 Annual General Meeting approved the Long Term Incentive Program for the Supervisory Board 2025-2027 with a majority of 89% and supplemented the remuneration system for the members of the Supervisory Board accordingly.
8.3 Management Board
Procedures and composition
The Management Board of WashTec AG is responsible for the management of the Company. As the Company's executive body, it is required to act in the Company's best interests, in furtherance of which it seeks to deliver sustained growth in shareholder value. It is responsible for establishing the principles of the Company's corporate policies in consultation with the Supervisory Board. The Management Board is also responsible for the strategic direction of the Company, the planning and setting of the Company's budget, the allocation of resources
and the oversight of the business units. In addition, the Management Board is responsible for ensuring compliance with legal and regulatory requirements and with internal corporate guidelines or directives, and it works to ensure compliance by all Group companies. It reports to the Supervisory Board regularly, promptly and comprehensively on all issues of relevance to the Company and the Group relating to strategy and strategy implementation, planning, the financial position, results of operations and cash flows, sustainability, compliance, risks and risk management.
The work of the Management Board is governed by rules of procedure for the Management Board, which are issued by the Supervisory Board. In particular, the rules of procedure define the portfolios of the members of the Management Board, specify the matters reserved for decision by the full Management Board, determine the matters requiring the approval of the Supervisory Board and set out the rules of procedure for Management Board meetings and resolutions.
Membership of the Management Board and allocation of responsibilities in fiscal year 2025:
| Name | Period | Portfolio |
|---|---|---|
| Michael Drolshagen (CEO & CTO) | January 1 to December 31, 2025 | ■ Corporate Culture, Communication and mission statement |
| ■ Human resources | ||
| ■ R&D | ||
| ■ Production | ||
| ■ Quality | ||
| ■ Service | ||
| ■ Sustainability¹ | ||
| ■ AUWA-Chemie GmbH | ||
| Sebastian Kutz (CSO) | January 1 to December 31, 2025 | ■ Key Account Management |
| ■ Sales | ||
| ■ Marketing | ||
| ■ Business units/product management | ||
| ■ WashTec Carwash Management GmbH |
¹ The sustainability portfolio was assigned to Mr. Drolshagen for the period from January 1, 2025 to March 31, 2025 and has been the responsibility of Mr. Pabst since April 1, 2025.
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| Name | Period | Portfolio |
|---|---|---|
| Andreas Pabst (CFO) | January 1 to December 31, 2025 | ■ Finance/Controlling |
| ■ IT | ||
| ■ Purchasing | ||
| ■ Investor Relations | ||
| ■ Legal and compliance | ||
| ■ Sustainability^{1} | ||
| ■ Risk management | ||
| ■ Internal audit | ||
| ■ Insurance | ||
| ■ WashTec Financial Services GmbH |
1 The sustainability portfolio was assigned to Mr. Drolshagen for the period from January 1, 2025 to March 31, 2025 and has been the responsibility of Mr. Pabst since April 1, 2025.
Succession planning and diversity policy
Together with the Management Board, the Supervisory Board ensures that long-term succession planning is in place for the Management Board. The CEO and the Chairman of the Supervisory Board hold regular discussions on this topic as part of such planning. This issue is also regularly addressed by the Supervisory Board in its meetings. Long-term succession planning is based in particular on discussions between the Supervisory Board and the members of the Management Board and on contacts with senior executives of the Company. Terms of office and renewal options for current Management Board members are discussed along with potential successors.
WashTec aims as a matter of policy for the composition of the Management Board to be based on qualification.
The Supervisory Board pays particular attention to diversity as part of the selection process for new Management Board members. In connection with filling vacancies on the Management Board, the Supervisory Board prepares a requirements profile and conducts interviews with suitable candidates. When making appointments to the Management Board, efforts are made to ensure that candidates have experience in the same or a similar industry. Based on this, the Supervisory Board decides on appointments to fill vacant Management Board positions taking into account the requirements profile and specific qualification requirements. Where necessary, the Supervisory Board and the Personnel and Nomination Committee are assisted by external consultants in the preparation of requirements profiles and the selection of candidates.
Given suitable experience, people of all age groups can be members of the Management Board. In accordance with Code Recommendation B.5, the Supervisory Board has set a standard age limit of 65 for members of the Management Board. Information on targets for the percentage of women on the Management Board is provided under heading 8.6 on page 73.
8.4 Supervisory Board
Supervisory Board procedures
The Supervisory Board of WashTec AG advises and monitors the Management Board in its management of the Company, including the management of the Group. Management Board decisions of major significance – for example, acquisitions, divestments and capital raising measures – are subject to Supervisory Board approval. The Supervisory Board regularly discusses business development and planning, as well as the Company's strategy and its implementation. The Supervisory Board reviews the Company's quarterly statements and half-year report and approves the annual financial statements of WashTec AG and the consolidated financial statements. As there is no resolution of the Annual General Meeting pursuant to Section 172 AktG, the annual financial statements of WashTec AG are adopted on approval by the Supervisory Board. The Supervisory Board monitors the Company's compliance with the law, official rules and internal company policies. Its scope of responsibilities also includes appointing the members of the Management Board and defining their portfolios. In addition, the Supervisory Board adopts resolutions on, among other things, the remuneration system for the Management Board (cf. section 87a AktG), on the basis of which the specific remuneration of individual Management Board members is determined, and submits them to the Annual General Meeting for approval in accordance with the law.
The work of the Supervisory Board is governed by internal rules of procedure, in particular pertaining to the convocation and conduct of meetings, the adoption of resolutions and the manner in which any conflicts of interest are handled. They are available on the Company's website: Rules of Procedure for the Supervisory Board – WashTec AG.
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The Supervisory Board regularly reviews the efficiency of its work in a self-assessment. The self-assessment is based on a questionnaire that is regularly updated and revised in accordance with the requirements of the Code. In the first quarter of 2026, another self-assessment was conducted. It confirmed the professional and trusting cooperation within the Supervisory Board and with the Management Board. Individual suggestions are being implemented on an ongoing basis. The Personnel and Nomination Committee accompanied the process. No significant shortcomings were identified. The Management Board and Supervisory Board work closely together in the best interests of the Company. No conflicts of interest requiring disclosure to the Supervisory Board arose on the part of members of the Management Board or Supervisory Board. The independent advice and monitoring of the Management Board by the Supervisory Board has been and continues to be ensured at all times.
Composition of the Supervisory Board and of Supervisory Board committees
Under Section 8.1 of the Articles of Association, the Supervisory Board of WashTec AG consists of six members who are elected by the Annual General Meeting. An amendment to the Articles of Association changing the number of Supervisory Board members from five to six was approved by the Annual General Meeting on May 13, 2025.
In the reporting year, in order to perform its duties efficiently and in accordance with the recommendations of the German Corporate Governance Code, the Supervisory Board established an Audit Committee and a Personnel and Nominating Committee. These committees contribute significantly to the structured and professional work of the Supervisory Board.
The primary purpose of the committees is to prepare Supervisory Board meetings and resolutions for the plenary Supervisory Board. Their responsibilities are set out in detail in the Rules of Procedure for the Supervisory Board. This is published online in the Investor
Committee membership in 2025
| Audit Committee | Personnel and Nomination Committee | |
|---|---|---|
| Ulrich Bellgardt | C | |
| Susanne Heckelsberger^{1} | C^{1} | |
| Dr. Hans Liebler | M | |
| Heinrich von Portatius | M | M |
| Dr. Alexander Selent^{1} | C^{1} | |
| Sabine Simeon Aissaoui^{2} | ||
| Peter Wiedemann | M |
C: Committee chairperson M: Committee member
1 Dr. Selent was a member of the Supervisory Board and Chairman of the Audit Committee until May 13, 2025. He was succeeded by Ms. Heckelsberger, who was elected as a member of the Supervisory Board by the 2025 Annual General Meeting on May 13, 2025. She also took over the chair of the Audit Committee.
2 Ms. Simeon Aissaoui was likewise elected as a member of the Supervisory Board at the 2025 Annual General Meeting.
Relations section on www.washtec.de. The committee chairpersons each report regularly to the Supervisory Board on the work of the committees.
The current membership of the Supervisory Board, meeting attendance and details of the Supervisory Board's work together with that of its committees in the reporting year are presented in the Report of the Supervisory Board beginning on page 11.
Taking into account the legal requirements and the recommendations of the Code, the Supervisory Board of WashTec AG has adopted, and continuously updated and revised – most recently in December 2025 – specific objectives for its composition, including a profile of skills and expertise and a diversity policy for the Supervisory Board.
WashTec Management Report // Corporate Governance Statement Financial Statements Further Information
Independence
The Supervisory Board is required to include what it considers to be an appropriate number of independent members within the meaning of the Code. For this purpose, more than half of the shareholder representatives are required to be independent from the Company and the Management Board. If the Company has a controlling shareholder, at least one of these shareholder representatives is also required to be independent from the controlling shareholder. The Chair of the Supervisory Board, the Chair of the Audit Committee, as well as the Chair of the Personnel and Nomination Committee, are required to be independent from the Company and the Management Board. The Chair of the Audit Committee is also required to be independent from any controlling shareholder.
Under the German Corporate Governance Code, the Supervisory Board should not include more than two former members of the Management Board.
In accordance with the Code, members of the Supervisory Board should not exercise any executive or advisory functions at major competitors and should not have personal links to any major competitor.
Diversity policy
Diversity contributes to a broad range of experience, perspectives, knowledge and skills within the Supervisory Board. The Supervisory Board therefore seeks to ensure sufficient diversity in terms of personality, gender, internationality, educational or professional background, expertise, experience and age distribution, taking particular account of the following criteria for its composition:
-
The Supervisory Board as a whole is required to have a balanced age structure, including both younger professionals and older members with greater professional and life experience.
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In elections to the Supervisory Board, the aim is to ensure that, in addition to suitability in terms of personal and professional skills and expertise, the Supervisory Board includes both male and female members. The composition of the Supervisory Board must be based on the applicable legal requirements and on the target quotas established on the basis of the Act on Equal Participation of Women and Men in Leadership Positions (Führungspositionengesetz).
-
The Supervisory Board is composed of individuals who, in addition to their personal and professional skills and expertise, preferably also have different educational and occupational backgrounds – such as engineering, management, business or the humanities.
Profile of skills and expertise
The guiding principle for the composition of the Supervisory Board is to ensure professional monitoring and advice of the Management Board of WashTec AG. Its members as a whole are required to possess the knowledge, skills and professional expertise necessary to properly perform the duties of the Supervisory Board of WashTec AG as an internationally operating listed company in the mechanical engineering sector and carwash solution provider.
Candidates proposed for election to the Supervisory Board are required to have the personality, knowledge and experience to properly perform the duties of a member of the Supervisory Board of WashTec AG as an internationally operating listed company in the mechanical engineering sector and carwash solution provider. Each member of the Supervisory Board is required to possess the integrity and independence of judgment to fulfill his or her responsibilities of oversight and control. For the purpose of advising and monitoring the Management Board, each member of the Supervisory Board is also required to have appropriate experience from management functions or to have otherwise acquired the necessary skills.
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Members of the Supervisory Board are each responsible for ensuring that they have sufficient time at their disposal to properly perform their duties. It is necessary to take into account in this connection that at least four ordinary Supervisory Board meetings are held each year, each of which requires adequate preparation, that sufficient time must be available for the review of the annual and consolidated financial statements, and that membership of Supervisory Board committees requires additional time.
Supervisory Board members are required to comply with the limit on the number of supervisory board offices held as recommended by the Code.
The normal age limit for membership of the Supervisory Board, as laid down in the rules of procedure for the Supervisory Board, is 75 years.
In addition, in view of the requirements in Section 100 (5) AktG, at least one member of the Supervisory Board must have expertise in the field of accounting and at least one other member of the Supervisory Board must have expertise in the field of auditing. According to the Code, the expertise in the field of accounting consists of special knowledge and experience in the application of accounting principles and internal control and risk management systems, and the expertise in the field of auditing consists of special knowledge and experience in the auditing of financial statements. Accounting and auditing also include sustainability reporting and its audit and assurance. The chairman of the audit committee is required to have appropriate expertise in at least one of the two areas. The members as a whole must be familiar with the sector in which the Company operates.
The members of the Supervisory Board as a whole are required to have knowledge and experience in the areas of digitalization and artificial intelligence. This includes having a basic understanding of technological concepts and their strategic relevance to the business model, as well as the ability to evaluate opportunities and risks, including legal and ethical considerations. Continuous professional development in this area is considered necessary.
The Supervisory Board as a whole is required to possess all skills and expertise considered material in view of WashTec's activities. This includes, in particular, knowledge and experience in the following areas of expertise:
| Area of expertise | Description |
|---|---|
| Strategy development and strategic management | In-depth knowledge and experience in strategy development, including corporate identity and performance management for strategy implementation |
| Leadership and management experience | Operational leadership and management experience from holding a management position (C-level) in a (listed) company |
| Innovation management | In-depth knowledge and experience of idea and product development processes, digitalization and AI applications |
| Value generation/supply chain | Knowledge and experience in the field of mechanical engineering and in establishing and managing value chains, including procurement, production, logistics and quality management |
| International sales and marketing | Knowledge and experience in sales and marketing, in particular in the North American market |
| Human resources | In-depth knowledge and experience in personnel recruitment, personnel management, personnel evaluation and personnel development |
| Finance | Knowledge and experience in the application of accounting principles and in accounting, in the application of internal control procedures and in the areas of W&A, banking and finance |
| ■ Financial reporting | Financial reporting expert |
| ■ Auditing | Auditing expert |
| IT processes and IT security | Knowledge and experience in the areas of IT processes and IT and cyber security |
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| Area of expertise | Description |
|---|---|
| Capital market and investor relations | In-depth knowledge of the capital market and of investor relations; experience with investors |
| Sustainability | Knowledge and experienced of ESG factors and their significance and of sustainability issues of importance to the WashTec Group, and knowledge of strategic and regulatory requirements (such as the C3RO) in relation to corporate governance in listed companies (German Corporate Governance Code, Market Abuse Regulation, etc.) |
| ■ Environment | Environmental expertise |
| ■ Social | Expertise in social matters, social sustainability and stakeholder interests |
| ■ Governance | Expertise in the area of risk management and compliance |
Implementation/composition of the Supervisory Board
The Supervisory Board of WashTec AG in the reporting period is composed in accordance with its objectives and the above requirements. All members of the Supervisory Board have diverse professional and educational backgrounds, international experience and many years of management experience. The members as a whole are familiar with the sector in which the Company operates and have the knowledge, skills and experience that are material to WashTec. The expertise of the Supervisory Board and the Audit Committee on sustainability issues relevant to the Company enables the Supervisory Board, in its monitoring and advisory capacity, to monitor the inclusion of environmental and social sustainability in corporate strategy and planning.
The Supervisory Board and its Audit Committee each had, and continue to have, at least one member with expertise in accounting in the person of Dr. Liebler and at least one additional member with expertise in auditing in the person of Dr. Selent (until May 13, 2025) and of Ms Heckelsberger (from May 13, 2025). Dr. Selent stepped down from the Supervisory Board at the end of the 2025 Annual General Meeting.
Ms. Heckelsberger, the Chairwoman of the Audit Committee, has expertise, special knowledge and experience in the fields of accounting and auditing, notably by virtue of her professional training as auditor and tax advisor and of her many years of experience as CFO and chairwoman of the audit committee of international companies.
Dr. Liebler has special knowledge and experience in the field of accounting, in particular due to his academic qualifications and his many years as managing director of various international companies.
Ms. Heckelsberger and Dr. Liebler consequently qualify as financial experts within the meaning of Section 100 (5) AktG and Code Recommendation D.3.
Furthermore, the Supervisory Board includes what it considers to be an appropriate number of independent members. In its assessment, five members of the Supervisory Board are independent within the meaning of the Code, namely Mr. Bellgardt, Ms. Heckelsberger, Mr. von Portatius, Ms. Simeon Aissaoui and Mr. Wiedemann. Dr. Liebler has been a member of the Supervisory Board since May 2012 and has therefore been a member for more than twelve years for the purposes of Code Recommendation C.7. The Supervisory Board is of the opinion that Dr. Liebler can also continue to advise and monitor the Management Board without bias and that there are no circumstances that could give rise to a conflict of interest.
Based on the requirements for members of the Supervisory Board, the following qualification matrix shows the expertise present and the status of implementation of the profile of skills and expertise and of the diversity policy as of December 31, 2025:
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| Ulrich Bellgardt | Peter Wiedemann | Susanne Heckelsberger | Dr. Hans Liebler | Heinrich von Portatius | Sabine Simeon Aissaoui | |
|---|---|---|---|---|---|---|
| Member of the Supervisory Board from | June 4, 2014 | May 16, 2022 | May 13, 2025 | May 10, 2012 | May 16, 2022 | June 4, 2025 |
| Independence* | x | x | x | x | x | |
| Year of birth | 1957 | 1959 | 1964 | 1969 | 1978 | 1973 |
| Gender | Male | Male | female | Male | Male | female |
| Nationality | German/Swiss | German | German | German | German | French |
| Internationalität | x | x | x | x | x | x |
| Areas of expertise | ||||||
| Strategy development and strategic management | ☑ | ☑ | ☑ | ☑ | ☑ | ☑ |
| Leadership and management experience | ☑ | ☑ | ☑ | ☑ | ☑ | ☑ |
| Innovation management | ☑ | ☑ | ☑ | |||
| Value generation/supply chain | ☑ | ☑ | ☑ | |||
| International sales and marketing | ☑ | ☑ | ☑ | |||
| Human resources | ☑ | ☑ | ☑ | ☑ | ||
| Finance | ☑ | ☑ | ☑ | |||
| ■ Financial reporting | ☑ | ☑ | ☑ | |||
| ■ Auditing | ☑ | ☑ | ☑ | |||
| IT processes and IT security | ☑ | |||||
| Capital market and investor relations | ☑ | ☑ | ☑ | |||
| Sustainability | ☑ | ☑ | ☑ | ☑ | ||
| ■ Environment | ☑ | ☑ | ☑ | |||
| ■ Social | ☑ | ☑ | ||||
| ■ Governance | ☑ | ☑ |
- Within the meaning of the German Corporate Governance Code 2022
☑ Based on a self-assessment by the Supervisory Board (a check mark indicates at least good and in-depth knowledge, exceeding the minimum legal requirements for Supervisory Board members, on the basis of existing qualifications or acquired in the course of service as a Supervisory Board member, such as through many years of service on the Audit Committee or regular participation in professional development measures).
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When selecting and nominating candidates for the Supervisory Board, the Supervisory Board and the Personnel and Nomination Committee take into account, in addition to the requirements of the law and the Code, the above-mentioned objectives for the composition of the Supervisory Board and strive to fulfill the profile of skills and expertise for the Supervisory Board as a whole. The selection process is also required to consider the diversity aspect at an early stage. The Supervisory Board's decision on election nominations to the Annual General Meeting is always based on the interests of the Company, taking into account all circumstances of the individual case.
8.5 Shareholders and the Annual General Meeting
WashTec AG reports to shareholders regularly and in detail, in the form of published reporting, in individual discussions and at investor conferences, on the Company's business development, financial position, financial performance and cash flows, as well as on non-financial subject matter such as sustainability.
The shareholders exercise their rights at the Annual General Meeting. The Annual General Meeting of WashTec AG is generally held in the second quarter of the year. The Annual General Meeting adopts resolutions regarding, among other things, the appropriation of distributable profit, ratification of the acts of the Management Board and Supervisory Board, and election of the auditor. Amendments to the Articles of Association and the granting of authorization to take measures that have the effect of changing the share capital are decided exclusively by resolution of the Annual General Meeting and implemented by the Management Board. Absent shareholders may have their voting rights exercised by proxies.
WashTec AG held the Annual General Meeting in person in the 2025 reporting year. All documents of relevance to its Annual General Meeting were published online in German and in English. The WashTec AG website thus provides an information platform for both national and international investors, including with regard to the Annual General Meeting.
8.6 Targets for the percentage of women on the Boards
The Supervisory Board is required to set targets for the percentage of women on the Company's Management Board and Supervisory Board, together with dates for their achievement.
In fiscal year 2023, the Supervisory Board set targets for the number of women on the Management Board and Supervisory Board from July 1, 2023 for achievement by June 30, 2028. The Supervisory Board has set the target figure for the number of women on the Management Board at zero (0) and the target figure for the number of women on the Supervisory Board at one (1) person.
Following the election of Ms. Heckelsberger and Ms. Simeon Aissaoui, the Supervisory Board had two female members in fiscal year 2025, thereby exceeding the target.
The Supervisory Board's reasoning for setting the target for the Management Board in this way was as follows: The setting of a target of zero for the Management Board is intended to retain the greatest possible flexibility for constituting the Management Board on the basis of qualification. The Supervisory Board decides on appointments to Management Board positions in the interests of the Company based on qualifications, experience and professional and personal suitability. The Supervisory Board pays particular attention to diversity as part of the selection process for new Management Board members. Elements of the diversity policy with regard to the composition of the Management Board include factors such as age, educational and professional background and gender. In the interests of maximum flexibility, however, no priority is to be given to gender in future appointments to the Management Board. With the Management Board in its new composition since last year, WashTec AG has a highly motivated and dynamic management team. Accordingly, in the interest of future-oriented and sustainable management of the Company and of confidence in the current composition of the Management Board, the Supervisory Board does not wish to send out the wrong signals by setting a higher target, nor does it wish by setting such a target to commit
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itself in advance – or give the impression of committing itself in advance – with regard to its appointment decisions for the next five years. The Supervisory Board's decision on appointments to Management Board positions will always continue to be based on the interests of the Company, taking into account all circumstances of the individual case.
Irrespective of the statutory targets for the percentage of women on the Management Board and Management Board and Supervisory Board, the WashTec Group attaches great importance to equal treatment, equal opportunities and diversity in when filling management positions and all other positions in the Company. In particular, the goal of further promoting the percentage of women in leadership positions within the WashTec Group continues to apply for the future.
The Management Board considers diversity when making appointments to executive positions. In fiscal year 2022, the Management Board of WashTec AG set itself the goal of further promoting the percentage of women in leadership positions within the WashTec Group and decided to set a voluntary female quota for one management level across the entire Group. The target is 18% (equivalent to 32 people); the date for achievement of the target is June 30, 2027. The need to set targets for the percentage of women at levels of management within WashTec AG does not arise, because WashTec AG as the Group parent has no such levels due to the very small number of employees.
8.7 Corporate governance practices
Transparency and communication
WashTec provides shareholders and stakeholders with comprehensive and timely information. WashTec's business situation and results are reported as part of financial reporting, at the annual press conference and in the form of phone or video conference calls. Information is also published in press releases and ad hoc announcements. All notices and disclosures, the Articles of Association of WashTec AG, all Declarations of Conformity and further documents concerning corporate governance (such as the WashTec Code of Conduct) are available for downloading from the Investor Relations section of the Company's website, www.washtec.de.
Under Article 19 of the Market Abuse Regulation (EU) No 596/2014, members of the Management Board and Supervisory Board, as well as persons closely associated with them, are required to disclose any purchase or sale of securities in WashTec AG or of related financial instruments once the purchase and sale transactions reach a total amount of €20,000 (up to December 31, 2025) or €50,000 (from January 1, 2026) within a calendar year. The reportable securities transactions reported to WashTec AG in the reporting period (managers' transactions) have been duly published and are available in the Investor Relations section of the Company's website, www.washtec.de under News – Managers' Transactions.
Compliance
WashTec has set up a Group-wide compliance organization to ensure that all relevant rules and regulations are observed. The compliance organization is subject to continuous development and improvement. The Management Board and Supervisory Board regard the compliance organization as a key element of the management and control structure at WashTec. Detailed reporting on compliance is thus a regular subject of meetings of the Supervisory Board and the Audit Committee. In addition, a detailed annual compliance report is prepared.
The strategic guidelines and the WashTec AG Code of Conduct form the basis of the Company's compliance program. It contains binding rules on legally compliant conduct as well as precise directions on matters such as compliance with competition law and anti-corruption law, handling donations, avoiding conflicts of interests, complying with the prohibition on insider trading, and protecting the Company's assets, as well as requirements for the protection of human and environmental rights within the meaning of the German Supply Chain Act (Lieferkettensorgfaltspflichtengesetz). The Code of Conduct is binding for all employees of the WashTec Group worldwide and for the members of the Management Board. It is regularly reviewed and updated to reflect social and regulatory changes.
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The members of the Supervisory Board likewise observe the rules to the extent that they apply to them. All WashTec Group managers and employees in sensitive areas such as Sales, Procurement, Human Resources and Finance receive regular online training on the Code of Conduct, with a concluding test and certification. Regular online training, likewise with a concluding test, is also provided on the General Data Protection Regulation, especially for new employees. As part of the compliance system, a whistleblower system in place since 2016 allows employees and others to raise concerns – anonymously if they prefer – and flag circumstances that may indicate a violation of the law or Company policies. Any such indications are investigated and action taken as appropriate if grounds for suspicion or violations are identified. The WashTec Group Grievance and Reporting Procedure is available in the Investor Relations – Corporate Governance section of the Company website, www.washtec.de.
The insider list to be maintained in accordance with Article 18 of the Market Abuse Regulation (EU) No 596/2014 is kept up to date in accordance with the law. The individuals recorded in the insider list are informed of the duties entailed.
Opportunities and risk management
Responsible management of opportunities and risks is an essential part of good corporate governance. The Management Board has established an internal control system and risk management system that is appropriate and effective having due regard to the scope of the business activities and the risk situation of the Company as a whole. The Management Board and the Supervisory Board regularly discuss existing opportunities and risks, their development and action to be taken. The internal control system and the risk management system are subject to continuous development and adaptation to changing conditions. Details are presented in the opportunities and risk report starting on page 48.
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9
Consolidated sustainability statement*
Sustainability is an integral part of WashTec's business conduct. WashTec has published a voluntary annual sustainability report since 2021.
For WashTec, systematic, ongoing development of the sustainability strategy and transparent sustainability reporting are a matter of course. The following consolidated sustainability statement has been prepared in accordance with the European Sustainability Reporting Standards (ESRS).
*This section was not audited by the auditor as part of the audit of the financial statements. It has undergone a limited assurance review.
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9.1 General disclosures
9.2 Environmental information
9.3 Social information
9.4 Governance information
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9.1 General disclosures
9.1.1 General basis for preparation of the consolidated sustainability statement 79
9.1.1.1 General basis for preparation of the consolidated sustainability statement 79
9.1.1.2 Disclosures in relation to specific circumstances 79
9.1.2 Governance 81
9.1.2.1 Role of Management Board and Supervisory Board 81
9.1.2.2 Role of Management Board and Supervisory Board in relation to business conduct 85
9.1.2.3 Information provided to and sustainability matters addressed by the Management Board and Supervisory Board 86
9.1.2.4 Integration of sustainability-related performance in incentive schemes 86
9.1.2.5 Statement on due diligence 87
9.1.2.6 Risk management and internal controls over sustainability reporting 88
9.1.3 General disclosures on strategy 88
9.1.3.1 Strategy, business model and value chain 88
9.1.3.2 Interests and views of stakeholders 93
9.1.3.3 Material impacts, risks and opportunities and their interaction with strategy and business model 95
9.1.4 Impact, risk and opportunity management 98
9.1.4.1 Description of the general process to identify and assess material impacts, risks and opportunities 98
9.1.4.2 Description of the process to identify and assess material climate-related impacts, risks and opportunities 99
9.1.4.3 Description of the process to identify and assess material pollution-related impacts, risks and opportunities 100
9.1.4.4 Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities 101
9.1.4.5 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and opportunities 101
9.1.4.6 Description of the processes to identify and assess material circular economy-related impacts, risks and opportunities 102
9.1.4.7 Description of the processes to identify and assess material business conduct-related impacts, risks and opportunities 102
9.1.4.8 Outcome of the double materiality assessment 102
9.1.4.9 Disclosure requirements in ESRS covered by the undertaking's sustainability statement 102
9.1.5 General policies adopted to manage material sustainability matters 103
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9.1 General disclosures
In the general disclosures section of this consolidated sustainability statement, WashTec provides basic information on its business model, strategy and sustainable alignment.
9.1.1 General basis for preparation of the consolidated sustainability statement
The following reporting is in compliance with the European Sustainability Reporting Standards (ESRS). In terms of reporting structure, WashTec adheres very closely to the sequence followed by the ESRS. This may result in some duplication.
9.1.1.1 General basis for preparation of the consolidated sustainability statement
With this consolidated sustainability statement, WashTec AG, as the Group parent company, complies with the reporting obligation under Section 315b (1) of the German Commercial Code (HGB). In accordance with Section 315c (3) of the Commercial Code, WashTec makes use of the option to prepare the consolidated sustainability statement in accordance with the ESRS.
In accordance with section 315 of the Commercial Code, the consolidated sustainability statement includes the required disclosures on environmental matters, employee matters, social matters, respect for human rights, anti-corruption and anti-bribery. The table below shows how these are referenced in the various sections.
Correspondence between disclosures under the German CSR Directive Implementation Act (CSR-RUG) and under ESRS
| Environmental matters | ■ Climate change (Et)
■ Pollution (E2)
■ Water and marine resources (E3)
■ Resource use and circular economy (E5) |
| --- | --- |
| Employee-related matters | ■ Own workforce (St) |
| Social matters | ■ Own workforce (St) |
| Respect for human rights | ■ Own workforce (St) |
| Anti-corruption and anti-bribery | ■ Business conduct (Gt) |
The consolidated sustainability statement was prepared in accordance with the ESRS as published in the Official Journal of the European Union as the Delegated Act on the first set of the European Sustainability Reporting Standards (ESRS; Delegated Regulation (EU) 2023/2772).
The consolidated sustainability statement is prepared by WashTec AG as the Group parent company.
It relates to the same scope of consolidation as the consolidated financial statements of WashTec AG. Please refer to the information in the notes to the consolidated financial statements on page 170.
The consolidated sustainability statement contains information on material impacts, risks and opportunities associated with the Group's own operations and the upstream and downstream value chain. It therefore covers WashTec's upstream and downstream value chain.
Further information on the upstream and downstream value chain can be found in section 9.1.3.1.2.
No use has been made of the option to omit specific pieces of information corresponding to intellectual property, know-how or the results of innovation.
9.1.1.2 Disclosures in relation to specific circumstances
9.1.1.2.1 Time horizons
The following time horizons have been defined for the consolidated sustainability statement.
■ Short-term: corresponds to the reporting period in the financial statements
■ Medium-term: from the end of the short-term reporting period and up to five years
■ Long-term: more than five years and up to ten years
9.1.1.2.2 Estimates and uncertainties
Certain metrics are determined using estimates. The assumptions underlying the estimates are reviewed annually. Such assumptions are primarily subject to change based on experience, new scientific knowledge and developments in sustainability reporting.
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Estimates are used to determine Scope 3 greenhouse gas (GHG) emissions in the categories "3.1 Purchased goods and services" and "3.11 Use of sold products," in accordance with the Greenhouse Gas Corporate Accounting and Reporting Standard ("GHG Protocol"). The calculation of GHG emissions in these categories depends on the GHG emission factors used, which to a great extent are subject to estimates. The resulting degree of accuracy of the reported GHG emissions is estimated to be medium. Further information on the basis for calculating GHG emissions in these categories can be found in section 9.2.2.4.4.
9.1.1.2.3 Cross-references and exemptions
No disclosures are incorporated by reference to other elements of the financial reporting.
9.1.1.2.4 Changes in preparation or presentation of sustainability information
WashTec determines greenhouse gas emissions (hereinafter referred to as "GHG emissions") in category "3.1 Purchased goods and services" using a database referencing the year 2020. To allow for inflation effects, the figures were used on an inflation-adjusted basis as recommended for the database. Applying this change would result in GHG emissions in this category of 52,939 t CO₂e instead of 48,955 t CO₂e for fiscal year 2024.
A different database was used to determine gross Scope 3 GHG emissions in fiscal year 2025. The database uses annual GHG emission factors for country-specific electricity mixes, providing a more accurate and up-to-date picture of Scope 3 GHG emissions. Scope 3 GHG emissions using the new database amounted to 171,542 t CO₂e in fiscal year 2024 as opposed to the 119,784 t CO₂e reported last year.
In the fiscal year, a change was made in the determination of Scope 3 GHG emissions in category "3.11 Use of sold products." The change relates to the determination of GHG emissions from sold equipment. Applying this change would result in GHG emissions in this category of 95,486 t CO₂e instead of 119,784 t CO₂e for fiscal year 2024.
9.1.1.2.5 Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements
Article 8 of the EU Taxonomy Regulation (Delegated Regulation (EU) 2020/852 in conjunction with Delegated Regulation (EU) 2026/73), through supplementary delegated acts and European Commission pronouncements, results in additional disclosure requirements, which are described in section 9.2.1.
9.1.1.2.6 Use of phase-in provisions in accordance with Appendix C of ESRS 1
The "Quick Fix" Delegated Regulation published by the EU Commission on July 11, 2025 amending the first set of ESRS (Delegated Regulation (EU) 2023/2772) contains extended and expanded transitional provisions for the current reporting year with regard to individual ESRS disclosure requirements.
WashTec makes use of these as follows:
- Omission of the disclosure of the anticipated financial effects under ESRS E1-9, E2-6, E3-5 and E5-6
- Omission of all disclosures under ESRS S2 (Workers in the value chain)
- Omission of certain disclosures under ESRS S1 (Own workers)
- S1-7 Characteristics of non-employees in the undertaking's own workforce
- S1-15 Work-life balance metrics
9.1.1.2.7 External validation
The consolidated sustainability statement underwent a limited assurance review by the auditor. Individual metrics did not undergo additional external validation unless explicitly stated. No limited assurance review was carried out by the auditor in the prior year. The prior-year figures were not included in the review in the reporting year either and are therefore unaudited.
WashTec Management Report // Consolidated sustainability statement Financial Statements Further Information
9.1.2 Governance
WashTec AG is a German stock corporation (Aktiengesellschaft) domiciled in Augsburg, Germany, and is listed in the Prime Standard segment of Frankfurt Stock Exchange. As the Group parent company, it is responsible for the strategic management and control of all subsidiaries.
9.1.2.1 Role of Management Board and Supervisory Board
9.1.2.1.1 Composition and diversity
The governing bodies of WashTec AG include the Management Board and the Supervisory Board.
The Management Board of WashTec AG consists of three executive members, and is responsible for the management of the business in accordance with the German Stock Corporation Act (Aktiengesetz). The Chief Executive Officer (CEO) is Mr. Michael Drolshagen.
Mr. Michael Drolshagen has been a member of the Management Board and Chief Executive Officer of WashTec AG (CEO and CTO) since May 2024. He studied industrial engineering. He began his career at Porsche in 2000 at the Weissach Development Centre, from where he moved to the Technical Competence Centre in Zuffenhausen and then spent several years as General Manager responsible for production preparation. As Vice President After Sales, he was then responsible for the global aftermarket of the car manufacturer Porsche and reported directly to the Executive Board of Porsche AG. Most recently, Mr Drolshagen was CEO of thyssenkrupp Presta Aktiengesellschaft.
Mr. Sebastian Kutz has been Member of the Management Board of WashTec AG (CSO) since March 2023. He has a degree in business administration. After holding various positions in national and international sales and marketing at RATIONAL AG until 2019, he was most recently Executive Vice President Sales and Service DACH at WashTec.
Andreas Pabst been Member of the Management Board of WashTec AG (CFO) since October 2022. He holds a business degree and is a qualified tax adviser (Steuerberater). After beginning his professional career at KPMG and various positions in accounting at listed companies, he moved to KUKA. There, he held various commercial positions of increasing responsibility and was Group CFO of KUKA AG from 2018 to 2021. Mr. Pabst most recently worked for Midea.
All members of the Management Board are male.
The Supervisory Board of WashTec AG consists of six independent members. The Chairman of the Supervisory Board is Mr. Ulrich Bellgardt. Dr. Liebler has been a member of the Supervisory Board since May 2012 and has therefore been a member for more than twelve years for the purposes of Code Recommendation C.7. The Supervisory Board is of the opinion that Dr. Liebler can continue to advise and monitor the Management Board without bias and that there are no circumstances that could give rise to a conflict of interest. No members of the Supervisory Board are appointed by employee representatives.
Since June 4, 2025, the Supervisory Board has consisted of four male (67%) and two female members (33%). Until the 2025 Annual General Meeting, all of the members of the Supervisory Board were male.
Dr. Selent was a member of the Supervisory Board until May 13, 2025. In accordance with the then current profile of skills and expertise for the Supervisory Board reprinted in the Annual Report 2024 (see page 70 of the Annual Report 2024), Dr. Selent had knowledge and experience in the areas of leadership experience/management, finance, risk management and compliance, human resources, sustainability (ESG), internationality, capital markets and investor relations.
The members of the Supervisory Board have a wide range of industry experience and expertise. They are consequently able to effectively oversee and supervise sustainability matters. The table below shows the profile of skills and expertise and the diversity of the WashTec AG Supervisory Board.
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| Ulrich Bellgardt | Peter Wiedemann | Susanne Heckelsberger | Dr. Hans Liebler | Heinrich von Portatius | Sabine Simeon Aissaoui | |
|---|---|---|---|---|---|---|
| Member of the Supervisory Board from | June 4, 2014 | May 16, 2022 | May 13, 2025 | May 10, 2012 | May 16, 2022 | June 4, 2025 |
| Independence* | x | x | x | x | x | |
| Year of birth | 1957 | 1959 | 1964 | 1969 | 1978 | 1973 |
| Gender | Male | Male | Female | Male | Male | Female |
| Nationality | German/Swiss | German | German | German | German | French |
| Internationalität | x | x | x | x | x | x |
| Areas of expertise | ||||||
| Strategy development and strategic management | ☑ | ☑ | ☑ | ☑ | ☑ | ☑ |
| Leadership and management experience | ☑ | ☑ | ☑ | ☑ | ☑ | ☑ |
| Innovation management | ☑ | ☑ | ☑ | |||
| Value generation/supply chain | ☑ | ☑ | ☑ | |||
| International sales and marketing | ☑ | ☑ | ☑ | |||
| Human resources | ☑ | ☑ | ☑ | ☑ | ||
| Finance | ☑ | ☑ | ☑ | |||
| = Financial reporting | ☑ | ☑ | ☑ | |||
| = Auditing | ☑ | ☑ | ☑ | |||
| IT processes and IT security | ☑ | |||||
| Capital market and investor relations | ☑ | ☑ | ☑ | |||
| Sustainability | ☑ | ☑ | ☑ | ☑ | ☑ | |
| = Environment | ☑ | ☑ | ☑ | |||
| = Social | ☑ | ☑ | ||||
| = Governance | ☑ | ☑ |
*Within the meaning of the German Corporate Governance Code 2022
☑ Based on a self-assessment by the Supervisory Board (a check mark indicates at least good and in-depth knowledge, exceeding the minimum legal requirements for Supervisory Board members, on the basis of existing qualifications or acquired in the course of service as a Supervisory Board member, such as through many years of service on the Audit Committee or regular participation in professional development measures).
WashTec Management Report // Consolidated sustainability statement Financial Statements Further Information
9.1.2.1.2 Roles and responsibilities
The bodies and persons responsible for the oversight of impacts, risks and opportunities in relation to sustainability matters are as follows:
- Management Board member
- Sustainability Officer
- Supervisory Board member
- Audit Committee of the Supervisory Board
How the responsibilities of the above bodies and persons for impacts, risks and opportunities are reflected in mandates and policies is described in the following.
The Management Board is responsible for the management of WashTec Group as a whole. It is fundamentally responsible for setting the Company's strategy and objectives, including the key performance indicators. The sustainability strategy is part of the overall corporate strategy. Until March 31, 2025, the Chief Executive Officer was responsible for the sustainability Management Board portfolio throughout the Group; since April 1, 2025, this responsibility has rested with the Chief Financial Officer. The Management Board systematically identifies and assesses impacts, risks and opportunities in relation to environmental, social and governance matters.
The Sustainability Officer reports directly to the Management Board of WashTec AG. The Management Board consults regularly with the Sustainability Officer on sustainability matters. The Sustainability Officer communicates relevant decisions on sustainability matters to the Management Board or, where the Management Board is responsible for such a decision, submits corresponding proposals for adoption.
The Supervisory Board of WashTec AG advises and monitors the Management Board in its management of the Company, including the management of the Group. The Supervisory Board regularly discusses issues relating to business development and planning, strategy (including the sustainability strategy), compliance, the risk situation and risk management. Important Management Board decisions are subject to the approval of the Supervisory Board. In this connection, the Supervisory Board also monitors the impacts, risks and opportunities in relation to sustainability matters.
The Audit Committee of the Supervisory Board is responsible for preparing the consultations and resolutions of the Supervisory Board on the approval of the annual financial statements and consolidated financial statements, the combined management report and the review of the consolidated sustainability statement. Furthermore, the Audit Committee of the Supervisory Board monitors accounting and the accounting process and assesses the effectiveness of the risk management system and the internal control system. The responsibilities of the Supervisory Board's Audit Committee also include compliance, sustainability reporting and quality in relation to the auditor.
The role of management and the delegation of that role to specific positions or committees are described in the following.
The Management Board of WashTec AG also holds overall responsibility for the sustainability strategy and compliance. As described above, the Management Board is overseen by the Supervisory Board.
The Sustainability Officer reports to the Management Board and is responsible for implementing the sustainability strategy and for operational sustainability management within the WashTec Group. Furthermore, the Sustainability Officer prepares Management Board decisions with regard to sustainability-related targets, policies and actions. Sustainability management also includes the management of impacts, risks and opportunities. The Sustainability Officer reports on this to the Management Board. The Sustainability Officer has developed processes and controls that ensure the identification, assessment and monitoring of impacts, risks and opportunities. In addition, the Sustainability Officer heads the Sustainability Team. The Sustainability Team consists of members from Environmental Management (E), Human Resources (S) and Legal and
WashTec Management Report // Consolidated sustainability statement Financial Statements Further Information
Compliance (G). It manages and monitors the implementation of processes, policies and initiatives in the non-financial context. The Head of Health, Safety and Environment is responsible for occupational safety and also reports to the Management Board.
The Management Board is responsible for defining and implementing strategy, including the sustainability strategy, and Company targets, and for monitoring progress towards the achievement of such targets in relation to impacts, risks and opportunities. The Management Board also reports to the Supervisory Board in this regard.
9.1.2.1.3 Skills and expertise
All members of the Management Board are acquainted with sustainability issues and their impact on strategy and the business model. They all possess experience and skills from working in global companies and managing employees. The Chief Executive Officer has prior engineering expertise from past employment. The Management Board is also involved in operational matters of sustainability management and is trained in issues of sustainability and sustainability reporting.
The material topic areas for the Company, including climate change, pollution, water, circular economy, own workforce and business conduct, are thus covered by the skills and expertise of the Management Board.
The composition of the Supervisory Board ensures that its members have the necessary knowledge, skills and professional experience to properly perform their advisory and supervisory functions.
ESG knowledge is specified as an essential competency for members of the Supervisory Board in the profile of skills and expertise compiled in accordance with the German Corporate Governance Code (section C.1). Specifically, this includes knowledge and experi-
enced of ESG factors and their significance and of sustainability issues of importance to the WashTec Group, and knowledge of corporate governance in listed companies (German Corporate Governance Code, Market Abuse Regulation, etc.) Five of the six Supervisory Board members have relevant knowledge in relation to ESG.
WashTec attaches great importance to a structured and transparent onboarding process for Supervisory Board members. The aim is to ensure that all members are able to perform their supervisory and advisory roles competently and responsibly.
New members are provided with a comprehensive overview of the corporate strategy, the business model and the legal and regulatory framework. Special emphasis is given here to the topics of corporate governance, compliance and sustainability. New members are provided with training on in-house policies, the Code of Conduct and the Supplier Code of Conduct.
Current challenges and strategic priorities are discussed in personal meetings with the Management Board and the heads of corporate functions (such as Legal & Compliance, Sustainability, and Finance). This fosters a common understanding and close collaboration.
As a supporting member of Arbeitskreis deutscher Aufsichtsrat e.V., Washtec supports all Supervisory Board members in continuous and independent professional development, information and exchange. The supporting membership includes a website with permanently available information on all matters concerning the work of supervisory boards, the BOARD members' magazine, individually compiled information and training programs for the Company and the Supervisory Board members, and events such as an annual supervisory board congress in Frankfurt. Supervisory Board members also took part in various professional development events, among other things with the focus on sustainability and governance.
WashTec Management Report // Consolidated sustainability statement Financial Statements Further Information
9.1.2.2 Role of Management Board and Supervisory Board in relation to business conduct
The Management Board of WashTec AG is responsible for the management of the Company. As the Company's executive body, it is required to act in the Company's best interests, in furtherance of which it seeks to deliver sustained growth in shareholder value. It is responsible for establishing the principles of the Company's corporate policies in consultation with the Supervisory Board. The Management Board is also responsible for the strategic direction of the Company, the planning and setting of the Company's budget, the allocation of resources and the oversight of the business units. In addition, the Management Board is responsible for ensuring compliance with legal and regulatory requirements and with internal corporate guidelines or directives, and it works to ensure compliance by all Group companies. It reports to the Supervisory Board regularly, promptly and comprehensively on all issues of relevance to the Company and the Group relating to strategy and strategy implementation, planning, the financial position, results of operations and cash flows, sustainability, compliance, risks and risk management.
The work of the Management Board is governed by rules of procedure for the Management Board, which are issued by the Supervisory Board. In particular, the rules of procedure define the portfolios of the members of the Management Board, specify the matters reserved for decision by the full Management Board, determine the matters requiring the approval of the Supervisory Board and set out the rules of procedure for Management Board meetings and resolutions.
All members of the Management Board have extensive business conduct-related experience and expertise from their current or previous work in global companies.
The guiding principle for the composition of the Supervisory Board is to ensure professional monitoring and advice of the Management Board of WashTec AG. Its members as a whole are required to possess the knowledge, skills and professional expertise necessary to properly perform the duties of the Supervisory Board of WashTec AG as an internationally operating listed company in the mechanical engineering sector.
Candidates proposed for election to the Supervisory Board are required to have the personality, knowledge and experience to properly perform the duties of a member of the Supervisory Board of WashTec AG as an internationally operating listed company in the mechanical engineering sector. Each member of the Supervisory Board is required to possess the integrity and independence of judgment to fulfill his or her responsibilities of oversight and control. For the purpose of advising and monitoring the Management Board, each member of the Supervisory Board is also required to have appropriate experience from management functions or to have otherwise acquired the necessary skills.
The Supervisory Board as a whole is required to possess all skills and expertise considered material in view of WashTec's activities. This includes, in particular, knowledge and experience in the following areas of expertise:
- Strategy development and strategic management
- Leadership and management experience
- Innovation management
- Value generation/supply chain
- International sales and marketing
- Human resources
- Finance
- IT processes and IT security
- Capital market and investor relations
- Sustainability
WashTec attaches great importance to a structured and transparent onboarding process for Supervisory Board members. The aim is to ensure that all members are able to perform their supervisory and advisory roles competently and responsibly.
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New members are provided with a comprehensive overview of the corporate strategy, the business model and the legal and regulatory framework. Special emphasis is given here to the topics of corporate governance and compliance. New members also have access to in-house policies, the Code of Conduct and the Supplier Code of Conduct. Current challenges and strategic priorities are discussed in personal meetings with the Management Board and the heads of corporate functions (such as Legal & Compliance, Sustainability, and Finance). This fosters a common understanding and close collaboration.
As a supporting member of Arbeitskreis deutscher Aufsichtsrat e.V., Washtec supports all Supervisory Board members in continuous and independent professional development, information and exchange. The supporting membership includes a website with permanently available information on all matters concerning the work of supervisory boards, the BOARD members' magazine, individually compiled information and training programs for the Company and the Supervisory Board members, and events such as an annual supervisory board congress in Frankfurt. Supervisory Board members also took part in various professional development events, among other things with the focus on compliance and governance.
9.1.2.3 Information provided to and sustainability matters addressed by the Management Board and Supervisory Board
The Management Board and Supervisory Board were regularly informed by the Sustainability Officer about the current status and content of sustainability reporting in accordance with ESRS. In addition, the quarterly and half-yearly financial reports also include reporting on the topic of sustainability, which the Management Board also addressed in the course of the year.
The Management Board thoroughly reviewed the materiality assessment and the underlying impacts, risks and opportunities in two meetings and gave its approval.
Reporting to the Audit Committee of the Supervisory Board on sustainability reporting, on the materiality assessment and on compliance with due diligence obligations was provided at two meetings of the Audit Committee in fiscal year 2025.
Both the Management Board and the Supervisory Board, together with the Audit Committee of the Supervisory Board, were thus informed about material impacts, risks, and opportunities, and were able to incorporate them into the monitoring of strategy, their own decisions on important transactions, and the risk management process. This also included any compromises to be made in decisions on important transactions.
The impacts, risks and opportunities addressed by the Management Board and Supervisory Board in fiscal year 2025 can be found in the sections on "Material impacts, risks and opportunities and their interaction with strategy and business model," under 9.2.2.2.2, 9.2.3.1.1, 9.2.4.1.1, 9.2.5.1.1, 9.3.1 and 9.4.2.1.
9.1.2.4 Integration of sustainability-related performance in incentive schemes
Responsibility for adopting resolutions on the remuneration system for members of the Management Board lies with the Supervisory Board as a whole. Under Section 120a (1) sentence 1 AktG, the Annual General Meeting votes on approval of the remuneration system for the members of the Management Board as submitted by the Supervisory Board at every material change and in any case at least every four years. The Annual General Meeting of WashTec AG last passed such a resolution on May 13, 2025. The performance-based variable remuneration components comprise short-term and long-term components tied to the achievement of various targets to be set by the Supervisory Board. The variable remuneration components are calculated in essentially the same way for all members of the Management Board.
Sustainability matters can be integrated in the Management Board incentive scheme as part of short-term, variable remuneration. Thus, when agreeing annual targets – which
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comprise operating and/or strategic targets, including targets of a non-financial nature – the Supervisory Board may also at its discretion agree sustainability-related targets. No sustainability targets were agreed for short-term variable remuneration for fiscal year 2025.
Under Section 113 (3) AktG, the annual general meeting of a listed company must adopt a resolution at least once every four years on the remuneration of members of the Supervisory Board. The resolution relates both to the system of remuneration for Supervisory Board members presented to the Annual General Meeting and to the setting of the remuneration for members of the Supervisory Board. The last resolution on the remuneration of members of the Supervisory Board was adopted at the Annual General Meeting of WashTec AG on May 13, 2025. The remuneration system for the Supervisory Board provides for fixed remuneration, attendance fees and the Long Term Incentive Program for the Supervisory Board 2025 - 2027 (LTIP 2025 - 2027).
Further information on the remuneration systems for the Management Board and Supervisory Board of WashTec AG can be found in the remuneration report for fiscal year 2025. The remuneration report and the remuneration systems are publicly available online in the Investor Relations section on www.washtec.de.
9.1.2.5 Statement on due diligence
The main aspects and steps of due diligence can be found in the following sections of the consolidated sustainability statement:
| Core elements of due diligence | Section of the non-financial statement |
|---|---|
| a) Embedding due diligence in governance, strategy and business model | 9.1.2.3 Information provided to and sustainability matters addressed by the Management Board and Supervisory Board |
| 9.1.2.4 Integration of sustainability-related performance in incentive schemes | |
| 9.1.3.3 Material impacts, risks and opportunities and their interaction with strategy and business model | |
| Core elements of due diligence | Section of the non-financial statement |
| --- | --- |
| b) Engaging with affected stakeholders in all key steps of the due diligence | 9.1.2.3 Information provided to and sustainability matters addressed by the Management Board and Supervisory Board |
| 9.1.3.2 Interests and views of stakeholders | |
| 9.1.4.1 Description of the general process to identify and assess material impacts, risks and opportunities | |
| Description of the processes to identify and assess topic-related material impacts, risks and opportunities (section 9.1.4.2 to section 9.1.4.7) | |
| 9.1.5 General policies adopted to manage material sustainability matters | |
| c) Identifying and assessing adverse impacts | 9.1.4.1 Description of the general process to identify and assess material impacts, risks and opportunities |
| Description of the processes to identify and assess topic-related material impacts, risks and opportunities (section 9.1.4.2 to section 9.1.4.7) | |
| 9.1.3.3 Material impacts, risks and opportunities and their interaction with strategy and business model | |
| d) Taking actions to address those adverse impacts | Topic-related disclosures on the management of material impacts, risks and opportunities in the relevant topical standards, E1, E2, E3, E5 and S1. Actions are disclosed here in accordance with the minimum disclosure requirements under ESRS 2 MDR-A |
| e) Tracking the effectiveness of these efforts and communicating | Topic-related disclosures on metrics and targets in the relevant topical standards, E1, E2, E3, E5 and S1 Actions are disclosed here in accordance with the minimum disclosure requirements under ESRS 2 MDR-M and MDR-T |
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9.1.2.6 Risk management and internal controls over sustainability reporting
Appropriate management of risks and opportunities is an integral part of corporate management at WashTec. WashTec has a risk management system and an internal control system for sustainability reporting in order to identify and assess risks and opportunities at an early stage. The risk management system includes sustainability matters.
Risks are identified, analyzed, assessed, managed, documented and communicated, and these activities monitored, using a uniform, Group-wide, multi-level risk management system. The purpose of this system is to identify risks posed by future events on the basis of short-term and mid-term planning (with both a 12-month and a two-to-three-year planning horizon) and to initiate any action needed to adequately address them. The aim of including risk analysis beyond the next twelve months is to aid in timely identification of potential future risks even if their impact is not material for the coming fiscal year. In the opinion of the Management Board, this risk early warning system is capable of suitably identifying all material and going-concern risks. The risk management system used by the Group allows systematic risk recording, documentation, assessment and aggregation on the basis of recognized statistical methods. Further information on the risk management system can be found in section 4.2.1.
Sustainability-related risks that extend beyond the three-year period covered by the risk management system are reported separately in connection with the information and sustainability matters addressed by the Management Board and Supervisory Board.
The internal control system for sustainability reporting has rules for the proper implementation of sustainability reporting.
The assessment and prioritisation of process risks for sustainability reporting is currently based on a qualitative appraisal. WashTec is working on improving the internal control system for sustainability reporting, specifically with regard to systematic documentation of the controls made.
The most important risks in connection with sustainability reporting relate to incomplete or incorrect qualitative and quantitative data collection and data consolidation. Impacts, opportunities or risks may also be incompletely identified or incorrectly assessed in the double materiality assessment. To mitigate these risks, WashTec has internal controls such as the dual control principle.
When WashTec identifies material process risks in relation to sustainability reporting, remedial measures and internal controls are implemented to mitigate them. The individual managers receive information on the process risks and implementation of the internal controls.
The Management Board and the Audit Committee of the Supervisory Board were informed in 2025 about the risk management system and the components of the internal control system in relation to sustainability reporting.
9.1.3 General disclosures on strategy
9.1.3.1 Strategy, business model and value chain
9.1.3.1.1 Sustainability strategy
The WashTec Group further refined its corporate strategy in fiscal year 2025. WashTec continues to regard sustainability as part of its value proposition.
The sustainability strategy was updated in fiscal year 2025 in the course of further elaboration of the corporate strategy.
WashTec Management Report // Consolidated sustainability statement Financial Statements Further Information
In its sustainability strategy, WashTec focuses on the following areas:
- Reducing water consumption in vehicle wash equipment
- Reducing energy consumption in vehicle wash equipment and in own operations
- Reducing the negative environmental impacts of washing chemicals
- Ensuring fair and safe working conditions
- Being a reliable business partner with high ethical standards
WashTec's sustainability strategy addresses the following material sustainability matters:
- Energy consumption in own operations
- Energy and water consumption in the downstream value chain
- Water pollution in the downstream value chain
- Health and safety for employees and temporary workers as well as
- Compliance in own operations
WashTec's sustainability strategy focuses equally on all business activities, customer groups and markets.
The associated challenges that lie ahead and the associated actions are described in the relevant topical standards under the information on the material impacts, risks and opportunities and their interaction with strategy and business model (sections 9.2.2.2.2, 9.2.3.1.1, 9.2.4.1.1, 9.2.5.1.1, 9.3.1 and 9.4.2.1).
9.1.3.1.2 Business model and value chain
WashTec's products and services can be divided into three main groups:
- Equipment
WashTec develops, produces and sells equipment for automated vehicle washing. The WashTec product range comprises all types of vehicle wash equipment, including gantry carwashes, conveyor tunnel carwashes, self-service wash equipment, commercial vehicle wash equipment, water recycling systems and other peripherals.
- Service
WashTec offers comprehensive servicing packages and digital smart service solutions spanning the entire product life cycle. This includes maintenance agreements for regular servicing, sales of spare parts, and digital systems for remote monitoring and control of equipment.
- Consumables
WashTec produces and sells proprietary chemical products specially developed for use in its wash equipment. These chemical products include shampoos, waxes, drying aids and wheel cleaners.
WashTec's most significant sales markets are Europe and North America. Major European markets are Germany and France. Further information can be found in section 2 of the combined management report.
WashTec serves a wide range of customers in various sectors who need vehicle wash equipment and related services. The product portfolio is designed both for key accounts and for small and medium-sized enterprises. WashTec's main customer groups are oil companies and service station chains, supermarkets and retail chains, car dealerships and garages, as well as independent carwash operators. The main distribution channel is direct sales via sales companies within the WashTec Group. Another significant distribution channel is the distributor business, which WashTec primarily utilizes in North America and in countries where it does not have sales companies of its own.
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Many WashTec customers make use of the full product portfolio, purchasing their wash equipment, service and washing chemicals from WashTec. Particularly in North America, WashTec sells washing chemicals from other suppliers.
The use phase of WashTec equipment commences after installation and commissioning of the vehicle wash equipment. The use phase of WashTec washing chemicals starts when a customer takes delivery of the chemicals.
The end-users of the wash equipment and systems are predominantly carwash customers of carwash operators.
With its products and services, WashTec aims to benefit both the environment and society. Reducing the energy and water consumption of equipment benefits customers economically. There is also a direct environmental benefit. The same applies to washing chemicals. WashTec aims to reduce the negative environmental impact of washing chemicals, which also benefits customers. Indirectly, investors can also benefit from the direct relationship between economic customer benefit and environmental impact.
WashTec serves customers worldwide both through subsidiaries and their own employees and through affiliated authorized distributors. A breakdown of employees by the individual countries in which WashTec operates through its own subsidiaries can be found in section 9.3.3.2.
WashTec operates a total of five production sites, with the following focuses:
- Augsburg, Germany: Production of the majority of WashTec's equipment for worldwide distribution
-
Recklinghausen, Germany: Manufacture of control systems for WashTec's worldwide needs
-
Grebenau, Germany: Production of washing chemical products of AUWA-Chemie GmbH (AUWA), primarily for sale on the European market
- Nýrany, Czech Republic: Sheet metal fabrication and assembly of equipment and components for the Augsburg production site
- Denver, USA: Production of WashTec carwash equipment for the North American market
In addition to the German sites, the WashTec Group has subsidiaries in the Netherlands, France, Denmark, Norway, Italy, Spain, the United Kingdom, Austria, the Czech Republic, Poland, the United States, Canada, Australia and New Zealand.
WashTec's supplier structure can be described as follows:
For the production of equipment, WashTec mainly requires raw materials such as steel, stainless steel and aluminum.
WashTec obtains most of the steel for the German and Czech production operations in the form of steel newly produced in Germany with a recycled content of approximately 20-25%. The iron ore used for steel and stainless steel production is primarily sourced from Australia. Most of the aluminum used is recycled material from European production. WashTec sources steel for the North American market from the USA.
WashTec also procures various components and assemblies, such as motors, pumps, nozzles, plastic parts, hoses, cables, electronics and brushes. These components and assemblies are mostly made of aluminum, brass, copper and various plastics. A high proportion of these products are sourced from German and other European markets.
WashTec purchases peripheral equipment for wash equipment, such as vacuum cleaners, mat cleaners or operating terminals, as merchandise from suppliers.
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In addition, various service providers support WashTec in production and logistics for wash equipment and systems.
The upstream value chain for services largely coincides with that of the Equipment business line. The components, assemblies and peripheral devices referred to above are sourced by WashTec here as spare parts. At a number of European and North American subsidiaries, service providers assist WashTec in carrying out maintenance and service callouts.
For the production of washing chemicals, WashTec primarily sources chemical inputs such as surfactants from Germany. The Group also purchases washing chemicals as merchandise from other suppliers or has certain products made by other producers. Another key resource for chemical production is water, which is sourced from local water providers. Washing chemicals for WashTec's non-European markets are purchased from local producers.
As WashTec generally maintains long-term supplier relationships, there were no significant changes in the supply chain in 2025.
9.1.3.1.3 Process steps in a WashTec carwash*
The process steps in a carwash are based on Sinner's circle – after the chemist Hubert Sinner – by varying the four factors time, temperature, mechanical action and chemicals (including water) in each subprocess. These four factors are significantly influenced by parameters such as choice of wash program, on-site temperature, seasonal vehicle soiling, vehicle size and legal requirements.
The individual process steps for washing a vehicle using typical WashTec wash equipment are described in the following.
In pre-cleaning, washing chemicals are used to treat stubborn dirt on the vehicle so that it can be more easily removed in subsequent stages. Customers can select among various options in terms of removal performance. The main factor for optimum cleaning performance is washing chemicals.
The high-pressure wash stage removes large quantities of dirt and hard particles together with the pre-cleaner. The system usually uses flat-jet and rotating point-jet nozzles that spray water onto the vehicle surface at a specified distance and angle. The main factor for optimum cleaning performance in the high-pressure wash stage is mechanical action.
The brush station removes fine particles from the vehicle's surfaces. This stage of the carwash process depends for its effectiveness on the design of the brushes in terms of material and their position relative to the vehicle surface. The brushes are fed with water through nozzles during the wash process to avoid scratching the paintwork. A brush shampoo may also be added to the water. The most important factors in this stage of the cleaning process are mechanical action and time.
By the preparation for drying stage, there is a continuous film of water on the vehicle surface as a result of detergents in the washing chemicals. This water film now has to be broken up into droplets. This is done by applying a water-repellent, hydrophobic layer that subsequently influences droplet dispersal.
This is followed by blower drying. For spotless results, the water droplets need to be removed with the aid of a blower. Comprising a roof blower and side blowers, the drying system is made up of a combination of fans and nozzles. There is usually a blower duct. The relevant parameters in the process circle here are washing chemicals, time and mechanical action.
*This section is not a requirement under the ESRS and is provided for the purpose of better comprehension. It is provided for the purpose of better comprehension and is not part of the consolidated sustainability statement.
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9.1.3.2 Interests and views of stakeholders
WashTec takes the interests and views of stakeholders into account in its corporate strategy and business model.
WashTec engages in dialogue with its stakeholders through various channels. This dialogue makes it possible to gain insights into the views and priorities of stakeholders regarding all matters of concern to WashTec and thus also sustainability matters.
Stakeholder dialogue is conducted both in the form of regular exchange and as the need arises.
WashTec maintains an overview of relevant stakeholders and their regular or occasional concerns.
Stakeholders' interests and views are taken into account in the materiality assessment via in-house proxies.
The Management Board and Supervisory Board have been informed of the results of the materiality assessment, including the interests and views of the stakeholders.
The following table shows the key stakeholders, the organization of engagement, the purpose and outcomes of engagement and how the outcomes of stakeholder engagement are taken into account.
| Stakeholder | Organization of engagement | Purpose of engagement | Outcomes of engagement and how the outcomes are taken into account |
|---|---|---|---|
| Customers | ■ Bilateral meetings and on-site visits | ||
| ■ Various forms of customer feedback (such as questionnaires, phone calls and personal interaction) | |||
| ■ Regular exchange with customers at events and trade fairs | |||
| ■ Website contact forms | ■ Establishing good customer relationships and building trust in the relationships | ||
| ■ Gaining understanding of customer requirements with regard to sustainability | |||
| ■ Feedback on product safety and quality | ■ Onward evolution of the strategy | ||
| ■ Revision of sales targets | |||
| ■ Development of resource-efficient innovations | |||
| ■ Improvements in product safety and quality | |||
| Employees/where applicable, works council | ■ Workplace meetings | ||
| ■ Personal and regular exchange with employee representatives | |||
| ■ Regular personal communication with the Diversity Team | |||
| ■ Employee surveys | |||
| ■ Whistleblower protection channel | ■ Engaging with employee views and experiences | ||
| ■ Feedback on business conduct | |||
| ■ Improving health and safety | |||
| ■ Improving action on diversity, equal treatment and inclusion | |||
| ■ Ensuring compliance | ■ Onward evolution of the strategy | ||
| ■ Adaptation of policies and processes | |||
| ■ Occupational safety certifications (such as SCC) | |||
| ■ Events with a diversity focus |
Table continued on page 94
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| Stakeholders | Organization of engagement | Purpose of engagement | Outcomes of engagement and how the outcomes are taken into account |
|---|---|---|---|
| Suppliers | ■ Bilateral meetings and visits to the most important suppliers | ||
| ■ Regular exchange with suppliers at events and trade fairs | |||
| ■ Supplier audits | ■ Establishing good supplier relationships and building trust in the relationships | ||
| ■ Exchange on sustainability in the supply chain | |||
| ■ Adhering to supply chain compliance | |||
| ■ Adhering to occupational safety processes | |||
| ■ Feedback on product safety and quality | ■ Onward evolution of the strategy | ||
| ■ Revision of supplier targets | |||
| ■ Improvements in the sustainability of purchased products | |||
| ■ External, certified safety management systems | |||
| ■ Supplier assessment and where necessary changes of supplier | |||
| Investors and banks | ■ Regular investor calls and written communication | ||
| ■ Personal meetings with banks, investors and investor representatives | |||
| ■ Participation in capital market events and roadshows | ■ Gaining understanding of expectations with regard to sustainability | ||
| ■ Exchange on ESG ratings | |||
| ■ Attracting investors | ■ Onward evolution of the strategy | ||
| ■ Adaptation of policies and processes | |||
| ■ Improvement of ESG ratings | |||
| ■ Feedback on the materiality assessment | |||
| End-users | ■ Various forms of end-user feedback (such as social media) | ||
| ■ Regular exchange with end-users at events and trade fairs | |||
| ■ Website contact forms | ■ Gaining understanding of end-user requirements with regard to sustainability | ||
| ■ Feedback on product safety and quality | ■ Onward evolution of the strategy | ||
| ■ Revision of sales targets | |||
| ■ Development of resource-efficient innovations | |||
| ■ Improvements in product safety and quality | |||
| Policymakers | ■ Exchange with policymakers on an occasional basis, for example at events | ■ Compliance with legal requirements | |
| ■ Compliance with sustainability requirements | |||
| ■ Securing jobs | ■ Onward evolution of the strategy | ||
| ■ Reduction of the carbon footprint through sustainable production | |||
| Industry associations | ■ Regular exchange in committees | ■ Joint lobbying | ■ Onward evolution of the materiality assessment |
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9.1.3.2.1 How the interests of the workforce inform strategy and business model
WashTec considers its employees crucial to its long-term success. The interests of employees are of central importance to WashTec and are taken into account in decision-making, strategy and processes. To this end, WashTec engages in regular and intensive dialogue with employees. In some countries (such as Germany, with the most employees), employees elect a works council, which has a right to information. Trusting cooperation with the Works Council is an important part of business conduct for WashTec. Regular meetings are held between the Management Board and the Works Council to exchange opinions and inform the Works Council about current operational developments.
A global survey of all WashTec employees was conducted in fiscal year 2025. This survey was carried out to measure employee satisfaction and loyalty, and the results were used to identify potential areas for improvement. One outcome consisted of "builders workshops" to collaboratively develop organizational change and improvement measures.
Works meetings are held twice annually at the main site in Augsburg. Employees' opinions and questions from these meetings can then be incorporated into decision-making going forward. Employee meetings are also held locally.
Regular communication and the WashTec whistleblower system for raising concerns about potential compliance violations ensure that employees can be heard at any time.
Alternative mechanisms ensure social dialogue and communication with employees who are not covered by collective bargaining agreements or are from countries without works councils. Such mechanisms include regular team meetings, employee appraisals and a generally open corporate culture.
9.1.3.2.2 How the interests of value chain workers inform strategy and business model
WashTec communicates intensively with suppliers. This also includes the promotion of sustainable practices in the value chain.
In the WashTec Supplier Code of Conduct, WashTec requires compliance with certain ethical and social standards. These include respect for human rights.
WashTec has established a human rights committee with in-house experts. This also addresses issues relating to respect for human rights in the value chain. The human rights committee can inform the Management Board directly about the interests and views of value chain workers as needed.
9.1.3.3 Material impacts, risks and opportunities and their interaction with strategy and business model
The table below provides an overview, in accordance with ESRS 1 AR 16, of material topics and sub-topics in terms of impact materiality, financial materiality, risks and opportunities.
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| Topics | Sub-topics | Impact materiality | Financial materiality |
|---|---|---|---|
| Climate change (ESRS E1) | Climate change adaptation | ☐ | ☐ |
| Climate change mitigation | ☐ | ☑ | |
| Energy | ☑ | ☐ | |
| Pollution (ESRS E2) | Pollution of air | ☐ | ☐ |
| Pollution of water | ☑ | ☐ | |
| Pollution of soil | ☐ | ☐ | |
| Pollution of living organisms and food resources | ☐ | ☐ | |
| Substances of concern | ☐ | ☐ | |
| Substances of very high concern | ☐ | ☐ | |
| Microplastics | ☐ | ☐ | |
| Water and marine resources (ESRS E3) | Water | ☑ | ☑ |
| Marine resources | ☐ | ☐ | |
| Biodiversity and ecosystems (ESRS E4) | Direct impact drivers of biodiversity loss | ☐ | ☐ |
| Impacts on the state of species | ☐ | ☐ | |
| Impacts on the extent and condition of ecosystems | ☐ | ☐ | |
| Impacts and dependencies on ecosystem services | ☐ | ☐ | |
| Resource use and circular economy (ESRS E5) | Resources inflows, including resource use | ☑ | ☐ |
| Resource outflows related to products and services | ☐ | ☐ | |
| Waste | ☑ | ☐ |
= material
= non-material
| Topics | Sub-topics | Impact materiality | Financial materiality |
|---|---|---|---|
| Own workforce (ESRS S1) | Working conditions | ☑ | ☑ |
| Equal treatment and opportunities for all | ☑ | ☐ | |
| Other work-related rights | ☐ | ☐ | |
| Workers in the value chain (ESRS S2) | Working conditions | ☑ | ☑ |
| Equal treatment and opportunities for all | ☐ | ☐ | |
| Other work-related rights | ☐ | ☐ | |
| Affected Communities (ESRS S3) | Communities' economic, social and cultural rights | ☐ | ☐ |
| Communities' civil and political rights | ☐ | ☐ | |
| Rights of indigenous peoples | ☐ | ☐ | |
| Consumers and end-users (ESRS S4) | Information-related impacts for consumers and/or end-users | ☐ | ☐ |
| Personal safety of consumers and/or end-users | ☐ | ☐ | |
| Social inclusion of consumers and/or end-users | ☐ | ☐ | |
| Business conduct (ESRS G1) | Corporate culture | ☐ | ☐ |
| Compliance* | ☐ | ☑ | |
| Protection of whistleblowers | ☐ | ☑ | |
| Animal welfare | ☐ | ☐ | |
| Political engagement and lobbying activities | ☐ | ☐ | |
| Management of relationships with suppliers including payment practices | ☐ | ☑ | |
| Corruption and bribery | ☐ | ☐ |
- Entity-specific metric
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Disclosures on the material impacts, risks and opportunities and their interaction with strategy and business model can be found in the information on the relevant topical standards (sections 9.2.2.2.2, 9.2.3.1.1, 9.2.4.1.1, 9.2.5.1.1, 9.3.1 and 9.4.2.1).
By way of exception, with regard to impacts, risks and opportunities related to value chain workers, WashTec makes use of the option of omitting the disclosures under ESRS S2. The material impacts, risks and opportunities and their interaction with strategy and business model in relation to value chain workers are therefore listed in this section.
The following effects, risks and opportunities were assessed as material:
| Sustainability matter | Material IRO | Description of the IRO and impacts on people and the environment | Location in the business model | Location in the value chain | Time horizon |
|---|---|---|---|---|---|
| Working conditions – Health and safety | Negative (potential) impacts of work-related accidents | Value chain workers are exposed to hazards on construction sites and in production. This can lead to work-related accidents (individual incidents) | Occupational health and safety worldwide | Upstream value chain | Short-, medium- and long-term |
| Working conditions – Health and safety | Risk due to work-related accidents | Reputational damage due work-related accidents involving value chain workers | Occupational health and safety worldwide | Upstream value chain | Short-, medium- and long-term |
The value chain workers referred to here are not all workers in the value chain, but workers of contractors commissioned by WashTec to install equipment on customer premises. This mainly applies to the countries where WashTec has operating units of its
own. No geographical regions are included in which there is a significant risk of child labor or forced labor. The material negative impact described here is an impact related to individual incidents.
In terms of health and safety, WashTec may have a potential negative impact on workers in the value chain due to work-related accidents causing illness or physical injury. Work-related accidents also represent a risk of reputational damage, combined with a financial risk for WashTec. Many WashTec customers require the companies they work with to have an effective quality, health, safety and environment (QHSE) management system. WashTec therefore has a dedicated organizational unit for this purpose, which is responsible for an effective QHSE management system. Employees working for this organizational unit help to ensure workplace safety worldwide – including for value chain workers affected by the negative impacts described above. Regular audits are used to monitor the effectiveness of workplace safety, including in the upstream value chain. From the Company's perspective, workplace safety for value chain workers is directly linked to the business model. The negative impacts and risks related to health and safety are therefore relevant to the business model in the short, medium and long term.
The WashTec business model is subject to the conditions arising from the above-mentioned strategically and commercially relevant impact and the risk of work-related accidents. However, WashTec does not consider that impact and risk to be so material that they could have a radically negative impact on the WashTec business model. One reason is that WashTec has already taken action to avoid negative impacts and minimize risks. Secondly, WashTec has an effective risk management system that enables it to identify, assess and monitor its own risks. No financial effects are currently measurable in connection with the risk presented here.
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WashTec has developed an understanding of how people with particular characteristics, those working in particular contexts, or those undertaking particular activities may be at greater risk of harm. This determination is based on risk assessments. As mentioned above, this applies to people involved in equipment installation.
9.1.4 Impact, risk and opportunity management
9.1.4.1 Description of the general process to identify and assess material impacts, risks and opportunities
The performance of a materiality assessment is the basis of the sustainability reporting. In it, WashTec systematically analyzes material sustainability-related impacts, risks and opportunities.
The impacts, risks and opportunities have been identified and assessed uniformly for the entire WashTec Group, taking into account the entire value chain. Specific information on the process for identifying and assessing impacts, risks and opportunities can be found in the topical disclosures (sections 9.1.4.2 to 9.1.4.7).
The result of the materiality assessment was presented to, evaluated and approved by the Management Board. In addition, a report on the process and results of the materiality assessment was submitted to the Audit Committee of the Supervisory Board.
9.1.4.1.1 Identification and assessment of impacts, risks and opportunities
Impacts, risks and opportunities are identified by reference to internal and external sources and in dialogue with internal and external stakeholders.
The basis for identifying impacts, risks and opportunities comprised the comprehensive list of sustainability matters in ESRS 1 AR 16. This list was supplemented with further matters of potential relevance to the WashTec Group. The outcome was a list of sustainability matters specific to the entire WashTec Group.
Two dimensions are relevant for assessing the materiality of a given sustainability matter:
- The materiality of impacts on people and the environment (impact materiality)
- The financial materiality of opportunities and risks
If a sustainability matter is material in relation to either of these two dimensions, WashTec reports on it in the consolidated sustainability statement in accordance with the requirements of the ESRS.
The identification and assessment of impacts, risks and opportunities was carried out on the basis of workshops with in-house specialists. For certain social and environmental impacts, risks, and opportunities, additional external sources were consulted, including information from industry associations and governmental institutions. This ensures that impacts are taken into account both in the Company's own operations and in the upstream and downstream value chain.
Consideration was given to the specific regulatory and economic circumstances in each country. The perspectives of affected stakeholders were taken into account by proxy via in-house specialists (such as heads of division).
The process identifying and assessing impacts, risks, and opportunities followed a top-down approach.
9.1.4.1.2 Assessment of impact materiality
The scale, scope and irremediable character of each impact was assessed using scores.
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Scale describes how grave a negative impact is or how beneficial a positive impact is for people or the environment. Scope describes the extent of environmental damage, its geographical reach or in the case of impacts on people the number of people affected. Irremediable character describes whether and to what extent negative impacts could be remediated by restoring the environment or affected people to their prior state.
Each of these criteria was assigned a score of 0 (extremely low) to 5 (very high) and the arithmetic mean calculated.
In the case of potential impacts, the expected likelihood of occurrence was taken into account in the assessment and a mean of 3.0 or greater assumed for the materiality threshold.
Even if the mean is less than 3.0, however, impacts can still be classified as material. This is the case if any one of the scores for the scale or irremediable character of the impact is assessed as very high.
9.1.4.1.3 Assessment of financial materiality
Financial materiality was assessed, where possible, on the basis of the likelihood of occurrence and the potential magnitude of the financial effects.
The short-term time horizon was defined as up to 1 year, the medium-term time horizon as 1 to 5 years and the long-term time horizon as 5 to 10 years.
The materiality of financial risks and opportunities was assessed based on a combination of the likelihood of occurrence and the magnitude of the potential financial effects. Opportunities and risks are assessed for both dimensions on a gross basis, meaning before mitigating measures.
Following completion of the assessment, a comparison with regard to completeness and scoring was made with the risks and opportunities already recorded in the risk management system. Sustainability risks are thus presented in a comparable manner to other risks and opportunities within the WashTec risk management system and can be prioritized accordingly. However, it should be noted that the ESRS assessment methodology differs in part from the risk management system. This relates, for example, to gross versus net assessment and to the time horizon, which is longer under ESRS than in the risk management system.
The threshold for financial materiality was set at €5,000k.
Unquantifiable financial impacts were estimated using qualitative information and the exceptions under ESRS 1 (Appendix C) were applied.
9.1.4.2 Description of the process to identify and assess material climate-related impacts, risks and opportunities
The identification and assessment of material impacts, risks and opportunities also included climate change matters. The main focus was on climate change adaptation, climate change mitigation and energy.
WashTec has reported on Scope 1 and 2 GHG emissions for many years and since 2024 also on Scope 3. This knowledge was incorporated into the double materiality assessment. Knowledge of budget planning and medium-term planning was also incorporated.
Physical and transition risks and opportunities were included in risk identification and assessment. The following time horizons were considered: short-term (2026), medium-term (2027 - 2030) and long-term (2031 - 2050).
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For physical risks, an assessment was conducted of the 28 climate-related hazards in accordance with Commission Delegated Regulation (EU) 2021/2139 (the EU Taxonomy Regulation). It assessed whether and to what extent the WashTec Group's assets and business activities and those of the upstream and downstream value chain are exposed to physical risks. For the upstream value chain, the most important suppliers were included in the assessment. The company's own locations were assessed for its own operations. For the downstream value chain, the impact of climate change on consumer behavior and the market was assessed.
Internal expert opinions were obtained and trends analyzed from climate research. The risks were assessed taking into account the likelihood, magnitude and duration of the hazards. The physical risks were assessed on the basis of geographical data for the company's own locations. For the upstream and downstream value chain, the assessment focused on regions. Climate-related physical risks were assessed using a high-emission climate scenario (SSP5-8.5). As a result of the assessment, no significant physical risks were identified.
With regard to transition risks and opportunities, climate-related transition events were considered on the basis of the Task Force on Climate-Related Financial Disclosures classification. Climate-related transition risks were assessed using a climate scenario in line with limiting global warming to 1.5 degrees Celsius (IEA NZE 2050 Scenario).
It was assessed whether and to what extent the WashTec Group's assets and business activities and those of the upstream and downstream value chain are exposed to such transition risks. The risks were assessed taking into account the likelihood, magnitude and duration of the hazards. WashTec has identified material risks in relation to the following climate-related transition events:
- Higher pricing of GHG emissions and
- changes in consumer behavior.
WashTec expects that significant efforts will be needed in order to be compatible with a transition to a climate-neutral economy.
A scenario analysis considering further climate scenarios has not yet been conducted. This is planned for fiscal year 2028.
9.1.4.3 Description of the processes to identify and assess material pollution-related impacts, risks and opportunities
The identification and assessment of material impacts, risks and opportunities also included pollution matters. The focus was on the following matters:
- Pollution of air, water and soil
- Pollution of living organisms and food resources
- Substances of concern and substances of very high concern
- Microplastics
Dependencies on ecosystem services that help to mitigate pollution-related impacts were not taken into account.
As part of this process, the washing chemicals activities and WashTec production sites were screened, including in particular the AUWA plant in Grebenau. The upstream and downstream value chain was included as well as the Company's own operations. In particular, the impact of washing chemicals on wastewater was analyzed. The washing chemicals were analyzed for the presence of substances of concern and substances of very high concern.
Relevant stakeholder perspectives and in-house technical expertise were taken into account. No consultation took place, including any consultation of affected communities.
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As the outcome of this process, it should be noted that Consumables business line is associated with the impact identified as material. The pollution-related impact identified as material relates solely to the downstream value chain and not to the Company's own operations.
Substances of concern and substances of very high concern were analyzed. The quantities or concentrations found in the washing chemicals are negligible.
9.1.4.4 Description of the processes to identify and assess material water and marine resources-related impacts, risks and opportunities
The identification and assessment of material impacts, risks and opportunities also included the topic of water and marine resources.
As part of this process, the WashTec production sites were screened, and in particular the AUWA plant in Grebenau, as the Company's washing chemicals contain water. The water consumption of the production sites was included in the assessment.
The assessment of the impacts, risks and opportunities included the Equipment business line as the carwashes consume water in operation. The upstream and downstream value chain was included as well as the Company's own operations.
The assessment with regard to water stress areas took into account externally available information, such as the WWF Water Risk Filter.
Water is important for the downstream value chain in the following geographical regions:
- Spain: Provinces of Albacete, Alicante, Almeria, Jaen and Murcia
-
Italy: Province of Sicily
-
France: Administrative region of Occitania
- USA: State of California
Relevant stakeholder perspectives and in-house technical expertise were taken into account. No consultation took place, including any consultation of affected communities.
As the outcome of this process, it should be noted that the impacts and risks identified as material in this area relate solely to the downstream value chain and not to the Company's own operations, as water consumption in the Company's own operations is within the normal range for a manufacturing company. The water resources-related impacts and risks identified as material relate to the use of equipment sold by WashTec.
9.1.4.5 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and opportunities
The identification and assessment of material impacts, risks and opportunities also included the topic of biodiversity and ecosystems. The focus was on the following matters:
- Direct impact drivers of biodiversity loss
- Impacts on the state of species
- Impacts on the extent and condition of ecosystems
- Impacts and dependencies on ecosystem services
WashTec has identified its own AUWA production site in Grebenau, which is located near a biodiversity-sensitive area. This site was assessed for actual and potential biodiversity-related impacts, risks, dependencies and opportunities. The upstream and downstream value chain was included as well as the Company's own operations.
Transition risks and physical risks, systemic risks and different scenarios were not systematically included.
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Relevant stakeholder perspectives and in-house technical expertise were taken into account. There was no direct consultation with stakeholders.
9.1.4.6 Description of the processes to identify and assess material circular economy-related impacts, risks and opportunities
The identification and assessment of material impacts, risks and opportunities also included the topic of circular economy. The focus was on the following matters:
- Resources inflows, including resource use
- Resource outflows related to products and services
- Waste
As part of this process, the WashTec business activities and assets were screened. Firstly, the focus was placed on the Equipment business line and the equipment manufacturing plants as this is where most resources are used and most waste is generated. Secondly, the Consumables business line was assessed, as raw materials are purchased for the production of washing chemicals. Thirdly, the Service business line was assessed as it involves the purchase of spare parts. The assessment was based on actual resource use. Priority was given to the resources with the highest weights – steel, stainless steel and aluminum. The upstream and downstream value chain was included as well as the Company's own operations. The upstream value chain is particularly relevant here, as WashTec obtains the majority of its material resources from upstream suppliers.
Relevant stakeholder perspectives and in-house technical expertise were taken into account. There was no direct consultation with stakeholders.
9.1.4.7 Description of the processes to identify and assess material business conduct-related impacts, risks and opportunities
The identification and assessment of material impacts, risks and opportunities also included the topic of business conduct. The focus was on the following matters:
- Corporate culture
- Protection of whistleblowers
- Animal welfare
- Political engagement and lobbying activities
- Management of relationships with suppliers including payment practices
- Corruption and bribery
- Compliance and data protection
As part of this process, the entire Company was screened, including all locations and activities and the upstream and downstream value chain.
9.1.4.8 Outcome of the double materiality assessment
As the outcome of the identification and assessment process, a total of 27 material impacts, risks and opportunities were identified.
These are described under the relevant topical standards (sections 9.2.2.2.2, 9.2.3.1.1, 9.2.4.1.1, 9.2.5.1.1, 9.3.1 and 9.4.2.1).
9.1.4.9 Disclosure requirements in ESRS covered by the undertaking's sustainability statement
In accordance with ESRS 1 Appendix E, the material sustainability matters in ESRS 1 AR16 and the associated disclosure requirements were determined on the basis of the identified impacts, risks and opportunities. In accordance with ESRS 1 Appendix E, datapoints for metrics were assessed individually for materiality.
Further information can be found in the annex to the consolidated sustainability statement.
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9.1.5 General policies adopted to manage material sustainability matters
Group-wide policies adopted to manage material sustainability matters in the WashTec Group are listed in the table below.
The WashTec Group Policy Statement on Social Responsibility and Human Rights refers to the following third-party standards and initiatives:
- The International Bill of Human Rights
-
The UN Guiding Principles on Business and Human Rights: Implementing the United Nations "Protect, Respect and Remedy" Framework
-
The ten principles of the UN Global Compact
- The ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up
- The ILO Core Labor Standards
- The Minamata Convention prohibiting the production, use or treatment of mercury or mercury-added products
- Article 3 (1) and Article 6 (1) d) of the POPS Convention prohibiting the production or use of persistent organic pollutants
- The Basel Convention prohibiting the import and export of hazardous waste
| Policy | General objectives | Core content | Scope | Level accountable |
|---|---|---|---|---|
| WashTec Code of Conduct | Specification of basic requirements for the principles of business conduct and thus risk identification, mitigation and avoidance | • Corporate philosophy | ||
| • Rules for WashTec as corporate citizen | ||||
| • Rules for WashTec as business partner | ||||
| • Rules for WashTec as employer | ||||
| • Reference to WashTec whistleblower system | • Worldwide | |||
| • Own operations, upstream and downstream value chain | • Management Board | |||
| WashTec Group Policy Statement on Social Responsibility and Human Rights | Commitment to respect for human rights and international standards at WashTec and its business partners | • Commitment to respect for human rights and international standards | ||
| • Corporate due diligence obligations | ||||
| • Grievance procedure | • Worldwide | |||
| • Own operations, upstream and downstream value chain | • Management Board | |||
| Grievance and Reporting Procedure | Description of the Grievance and Reporting Procedure | • Who may use the Grievance and Reporting Procedure | ||
| • What information may be submitted | ||||
| • Grievance and reporting channels | ||||
| • Processing of information submitted using the Grievance and Reporting Procedure | ||||
| • Confidentiality | ||||
| • Protection of whistleblowers | • Worldwide | |||
| • Own operations, upstream and downstream value chain | • Management Board |
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9.2 Environmental information
9.2.1 Disclosures on the EU Taxonomy 105
9.2.1.1 Assessment of the Taxonomy eligibility and Taxonomy alignment of WashTec's economic activities 105
9.2.1.2 Determination of key performance indicators in relation to Taxonomy eligibility and Taxonomy alignment 106
9.2.2 Disclosures on climate change 108
9.2.2.1 Integration of sustainability-related performance in incentive schemes in relation to environmental matters 108
9.2.2.2 Strategy in relation to climate change 108
9.2.2.3 Impact, risk and opportunity management in relation to climate change 112
9.2.2.4 Metrics and targets related to climate change 114
9.2.3 Disclosures on pollution 123
9.2.3.1 Impact, risk and opportunity management in relation to pollution 123
9.2.3.2 Metrics and targets related to pollution 124
9.2.4 Disclosures on water resources 124
9.2.4.1 Impact, risk and opportunity management in relation to water resources 124
9.2.4.2 Metrics and targets related to water resources 126
9.2.5 Resource use and circular economy 127
9.2.5.1 Impact, risk and opportunity management in relation to resource use and circular economy 127
9.2.5.2 Metrics and targets related to resource use and circular economy 129
9.2.5.3 Resource inflows 130
9.2.5.4 Resource outflows 132
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9.2 Environmental information
9.2.1 Disclosures on the EU Taxonomy
Article 8 of the EU Taxonomy Regulation (Delegated Regulation (EU) 2020/852), supplementary delegated acts and related European Commission pronouncements result in reporting obligations for the disclosure of environmentally sustainable economic activities.
For fiscal year 2025, taxonomy reporting has been carried out with reference to Delegated Regulations (EU) 2021/2178, (EU) 2021/2139 and (EU) 2023/2486 and applying Commission Delegated Regulation (EU) 2026/73 of July 4, 2025 on the simplification of reporting. This results in changes in the reporting templates for the percentage of turnover (revenue), CapEx and OpEx from goods or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities in the reporting year.
9.2.1.1 Assessment of the Taxonomy eligibility and Taxonomy alignment of WashTec's economic activities
An economic activity is Taxonomy-eligible if it is described in one of the Delegated Acts supplementing the EU Taxonomy Regulation. The EU Taxonomy Regulation includes criteria for economic sectors and activities that have the potential to make a significant contribution to one of the six environmental objectives. The six environmental objectives are climate change mitigation; climate change adaptation; the sustainable use and protection of water and marine resources; the transition to a circular economy; pollution prevention and control; and the protection and restoration of biodiversity and ecosystems.
An economic activity is Taxonomy-aligned if it meets all of the following criteria: contributes substantially to one or more of the environmental objectives, does not significantly harm any of the other environmental objectives, and complies with the minimum safeguards.
To determine Taxonomy eligibility, the WashTec Group's business activities and the associated turnover (revenue), CapEx and OpEx were assigned to the corresponding economic activities listed in the Climate Delegated Act and the Environmental Delegated Act.
After applying the new 10% materiality threshold under Article 2(1a) of Delegated Regulation (EU) 2021/2178, as amended by Regulation (EU) 2026/73, no significant taxonomy-eligible revenue-generating activities were identified for fiscal year 2025. The non-assessed, non-material revenue-generating activities relate to the "water supply, sewerage, waste management and remediation activities" sector.
For fiscal year 2025, after applying the new 10% materiality threshold under Article 2(1a) of Delegated Regulation (EU) 2021/2178, as amended by Regulation (EU) 2026/73, only two significant taxonomy-eligible economic activities were identified for which CapEx was incurred. The first is the leasing of vehicles that are Taxonomy-eligible under economic activity "CCM 6.5. Transport by motorbikes, passenger cars and light commercial vehicles." The second is CapEx on buildings that falls under economic activity "CCM 3.5 Manufacture of energy efficiency equipment for buildings."
The non-assessed, non-material activities within CapEx relate to the sectors "Manufacturing" and "Construction and buildings."
An analysis showed the OpEx to be non-material to the WashTec Group's business model. The OpEx identified in accordance with the EU Taxonomy Regulation has no strategic relevance to the WashTec Group. Furthermore, OpEx that comes under the EU Taxonomy Regulation accounts for only a minor share of total operating expenses in the WashTec Group. Therefore, in accordance with Article 2(1c) of Delegated Regulation (EU) 2021/2178, as amended by Regulation (EU) 2026/73, this KPI is excluded from the calculations and disclosure of the OpEx numerator.
To determine taxonomy alignment, an assessment was made together with in-house experts whether the Taxonomy-eligible economic activity "CCM 6.5. Transport by motor-
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bikes, passenger cars and light commercial vehicles" meets all of the above criteria. Taxonomy alignment is not satisfied, as the criterion of a significant contribution to climate change mitigation was not met.
9.2.1.2 Determination of key performance indicators in relation to Taxonomy eligibility and Taxonomy alignment
WashTec has determined the key performance indicators under the EU Taxonomy Regulation, comprising turnover, CapEx and OpEx, in accordance with the International Financial Reporting Standards (IFRSs) of the International Accounting Standards Board (IASB) in force as of the reporting date together with the interpretations of the IFRS IC (IFRIC) as adopted by the European Union. The disclosures on the performance indicators relate to the companies fully consolidated in the WashTec Group's financial statements.
Taxonomy-eligible economic activities only related to one environmental objective. Double counting could therefore be ruled out.
As a rule, all key performance indicators are recorded on the same uniform level after consolidation adjustments.
The turnover key performance indicator is calculated as the proportion of revenue derived from products or services associated with economic activities that qualify as Taxonomy-eligible or Taxonomy-aligned under the Taxonomy Regulation (numerator), divided by consolidated revenue in fiscal year 2025 (denominator). Revenue recognition is in accordance with IFRS 15 Revenue from Contracts with Customers. For the principles applied to revenue recognition, please refer to the notes to the consolidated financial statements, section 5 (page 183).
The numerator of Taxonomy-eligible turnover was €0k in fiscal year 2025 (prior year: €7,265k). The change compared to the prior year results from the application of the new 10% materiality threshold under Article 2(1a) of Delegated Regulation (EU) 2021/2178, amended by Delegated Regulation (EU) 2026/73.
The denominator is net turnover within the meaning of Article 2, point (5), of Directive 2013/34 and is €498,618k (prior year: €476,889k; see also "Revenue" in the Consolidated Income Statement, page 163).
The CapEx key performance indicator is calculated as the proportion relating to assets or processes that are associated with economic activities that qualify as Taxonomy-eligible or Taxonomy-aligned under the Taxonomy Regulation (numerator), divided by the total additions to property, plant and equipment, intangible assets and right-of-use assets in fiscal year 2025 (denominator). CapEx is determined in accordance with IAS 16 Property, Plant and Equipment, IAS 38 Intangible Assets and IFRS 16 Leases.
The numerator of the total Taxonomy-eligible CapEx in accordance with the EU Taxonomy Regulation is €7,361k (prior year: €11,795k). Of this amount, €76k (prior year: €879k) relates to additions to property, plant and equipment and €7,285k (prior year: €10,916k) to right-of-use assets. The change compared to the prior year results from the application of the new 10% materiality threshold under Article 2(1b) of Delegated Regulation (EU) 2021/2178, as amended by Regulation (EU) 2026/73, and from lower capital expenditure on the vehicle fleet.
The denominator comprising CapEx consists of additions to property, plant and equipment, intangible assets and right-of-use assets in fiscal year 2025 and is €18,815k (prior year: €20,136k; see notes to the consolidated financial statements, page 193 et seq.).
An analysis showed the OpEx to be non-material to the WashTec Group's business model (see section 9.2.1.1).
Accordingly, only the denominator is reported in accordance with the EU Taxonomy Regulation. The OpEx comprises direct non-capitalized costs that relate to research and development, building renovation measures, short-term leases, maintenance and repair, and any other direct expenditures relating to the day-to-day servicing of assets of property, plant and equipment that are necessary to ensure their continued and effective functioning.
The denominator comprising OpEx as defined above is €22,709k (prior year: €21,217k).
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Proportion of turnover, CapEx and OpEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities – disclosure covering year 2025 (summary KPI)
Fiscal year 2025
| KPI | Total | Proportion of Taxonomy-eligible activities | Taxonomy-aligned activities | Proportion of Taxonomy-aligned activities | Breakdown of taxonomy-aligned activities by environmental objectives | Proportion of enabling activities | Proportion of transitional activities | Unassessed non-material activities | Taxonomy-aligned activities in prior fiscal year 2024 | Proportion of Taxonomy-aligned activities in prior fiscal year 2024 | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Climate change mitigation | Climate change adaptation | Water | Circular economy | Pollution | Biodiversity | ||||||||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | (14) | (15) | (16) |
| ex | % | ex | % | % | % | % | % | % | % | % | % | % | ex | % | |
| Revenue | 498,618 | - | - | - | - | - | - | - | - | - | - | - | 1% | 7,265 | 2% |
| CapEx | 18,815 | 39% | - | - | - | - | - | - | - | - | - | - | 9% | 0 | 0% |
| OpEx | 22,709 | - | - | - | - | - | - | - | - | - | - | - | - | 0 | 0% |
Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities (breakdown by activities)
CapEx in fiscal year 2025
| Economic activities | Code | Taxonomy-eligible KPI (proportion of Taxonomy eligible CapEx) | Taxonomy-aligned KPI (monetary value of CapEx) | Taxonomy-aligned KPI (proportion of Taxonomy-aligned CapEx) | Environmental objective of Taxonomy-aligned activities | Enabling activity | Transitional activity | Taxonomy-aligned proportion of taxonomy-eligible activities | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Climate change mitigation | Climate change adaptation | Water | Circular economy | Pollution | Biodiversity | ||||||||
| (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11) | (12) | (13) | (14) |
| % | ex | % | % | % | % | % | % | % | % | ||||
| Transport by motorbikes, passenger cars and light commercial vehicles | CCM 6.5 | 39% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | 0 |
| Manufacture of energy-efficiency equipment for buildings | CCM 3.5 | 0% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | 0 |
| Total aligned, by objective | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
| KPI total (CapEx) | 39% | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - | - | 0 |
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9.2.2 Disclosures on climate change
9.2.2.1 Integration of sustainability-related performance in incentive schemes in relation to environmental matters
The incentive scheme for the Management Board and Supervisory Board is described in section 9.1.2.4.
9.2.2.2 Strategy in relation to climate change
9.2.2.2.1 Transition plan for climate change mitigation
WashTec determines its GHG emissions in accordance with the requirements of the GHG Protocol and distinguishes between Scopes 1, 2 and 3. On this basis, clear, measurable goals were defined and a transition plan was developed. For countries with production sites, the transition plan provides for a 30% reduction in Scope 1 and 2 GHG emissions by 2030 and a 50% reduction by 2025 relative to the 2019 base year. The targets relate exclusively to GHG emissions in production countries and the sales and service organizations in those countries.
In the long term, WashTec is aiming to eliminate Scope 1 and 2 GHG emissions at production sites and in all sales and service organizations worldwide by 2040. The interim target for 2025 was achieved ahead of schedule in 2024. Despite a significant increase in business activities, including more hours worked, more employees and higher revenue, absolute GHG emissions in countries with production operations remained constant in 2025. The resulting relative improvement in the above WashTec-specific metrics can be considered to demonstrate the effectiveness of the action taken in fiscal year 2025.
As WashTec's transition plan relates solely to Scopes 1 and 2, it is not possible to provide any disclosure in relation to the achievement of the 1.5-degree target under the Paris Climate Agreement.
2019 was selected as the base year because at the time of compiling the Environmental and Energy Concept 2025, it was the last representative year without major external influences such as the COVID pandemic or supply chain disruptions. As the targets in both plans are identical and the targeted reductions in the 2030 plan are the same as in the 2025 plan, 2019 continues to be used as the base year in order to ensure consistency and comparability.
WashTec uses a wide variety of different metrics to assess the impact of dynamic global events on target achievement.
There is currently no transition plan within the meaning of ESRS E1, as Scope 3 is not included in the targets. However, WashTec intends to take additional action to reduce these GHG emissions.
Around 79% of the Scope 1 and 2 GHG emissions generated by WashTec worldwide are attributable to the vehicle fleet, 9% to the Company's own heat energy production, 8% to electricity and 4% to purchases of district heating.
The key lever for reducing Scope 1 GHG emissions at WashTec is vehicle fleet electrification. However, implementing this depends on extraneous circumstances such as charging infrastructure, vehicle ranges and charging speeds. Where these requirements cannot yet be met, WashTec uses vehicles with modern engine technologies that ensure high efficiency and low pollution. In North America, the large geographical distances and the lack of widespread charging infrastructure are hindering the switch to electric vehicles.
In addition to reducing GHG emissions from vehicle travel, WashTec is working to achieve further reductions in energy consumption and GHG emissions by means of digital solutions to minimize customer visits.
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With regard to the generation of heat energy – both for process heat and space heating – WashTec aims to reduce heat energy requirements overall and to meet the remaining requirements from renewable sources.
There are three areas of focus with regard to electricity supply: Firstly, expanding in-house generation capacity with solar installations and energy storage systems; secondly, modernizing machinery and equipment to increase energy efficiency; and thirdly, meeting the remaining electricity requirements with certified green electricity.
For district heating, WashTec relies on the transition plans adopted by local providers. A provider in Augsburg, for example, aims to provide GHG-emission-free district heating by 2040. WashTec maintains regular contact with the provider to monitor the progress of this transition.
By implementing energy-efficient technologies and increasing the use of renewable energy sources, WashTec is confident of achieving the Scope 1 and 2 targets. This is ensured by conducting market analyses on a continuous basis and testing new solutions, which are then adopted if all relevant requirements are met.
With regard to Scope 3 GHG emissions, WashTec has identified the main decarbonization levers as being in the categories "3.1 Purchased goods and services" and "3.11 Use of sold products." Around 38% of Scope 3 GHG emissions are attributable to the upstream value chain, i.e. to purchased goods and services. WashTec consistently considers sustainability criteria when selecting new suppliers and service providers to ensure that they align with its sustainability strategy. Both new and existing suppliers must commit to the WashTec Supplier Code of Conduct, which was adopted in fiscal year 2024. This also includes environmental responsibility requirements.
Around 60% of Scope 3 GHG emissions are generated in category "3.11 Use of products sold." The biggest influencing factor is the energy source used to operate wash equipment. GHG emissions fall as more customers use green electricity and as renewable energy accounts for a growing share of the national electricity mix. Environmental and energy considerations play a key role in new product development. Requirements to this effect are contained in a sustainable design guideline. This is expected to result in further improvements in the downstream value chain.
The remaining approximately 2% of Scope 3 GHG emissions are attributable to category "3.12 End-of-life treatment of sold products."
An internal assessment has determined that there are no potential locked-in GHG emissions from the Company's key assets and products.
WashTec's climate change mitigation measures are firmly embedded in the sustainability strategy. Regular consultation between the Sustainability Officer, the Environment and Energy Team and the Management Board ensures that the measures are continuously reviewed, jointly evaluated with the relevant decision-makers and further developed.
The financial resources needed to implement the transition plan are budgeted annually over the years of the implementation period. Detailed costing and planning of the various climate change mitigation measures is carried out as part of the budgeting process.
WashTec is not excluded from the EU Paris-aligned benchmarks. The Company is fully subject to the criteria stated in Articles 12(1)(d) to (g) and 12(2) of Commission Delegated Regulation (EU) 2020/1818 (the Climate Benchmark Standards Regulation).
The Company's transformation plan was adopted in a multi-stage approval process. It was first prepared by the Environment and Energy Team. The transition plan was then approved by the Management Board of WashTec AG. In a further step, the Supervisory Board granted final approval.
WashTec has already made progress in reducing Scope 1 and 2 GHG emissions in the past. In fiscal year 2025, Scope 1 and 2 GHG emissions in countries with production sites
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and in sales and service organizations based in those countries were reduced by approximately 34% compared to the 2019 base year. The ambitious target of a 30% reduction in GHG emissions by 2025 was thus exceeded. This includes conversion of the German plants to 100% green electricity, conversion of heating systems to district heating, active use of waste heat and commencing the electrification of the vehicle and forklift fleet. Continuous improvements in the energy efficiency of fabrication and production processes have also contributed significantly to the above-mentioned reduction.
9.2.2.2.2 Material impacts, risks and opportunities and their interaction with strategy and business model
A total of six climate change-related impacts, risks and opportunities were identified as material (prior year: seven). With regard to climate change, the risk relating to price increases due to carbon taxation has now been classified as material in the fiscal year. The previous material negative impacts on energy consumption due to the heating or cooling of buildings and from the vehicle fleet are no longer classified as material. In the reporting year, these are included as part of the material negative impact under "Negative actual impacts of energy consumption in own operations." The material climate change-related impacts, risks and opportunities and their location in the business model and value chain are shown in the table below.
| Sustainability matter | Material IRO | Description of the IRO and impacts on people and the environment | Location in the business model | Location in the value chain | Time horizons | Classification as physical or transition risk |
|---|---|---|---|---|---|---|
| Energy consumption | Negative actual impacts of energy consumption in own operations | WashTec consumes energy (mainly electricity and gas) in its own operations. The resulting GHG emissions have a negative impact in terms of climate change | Production of equipment, systems and washing chemicals (Group-wide) | Own operations | Short-, medium- and long-term | n/a |
| Energy consumption | Negative actual impacts of energy consumption in the upstream value chain | Some purchased products and services are energy-intensive. This mainly relates to the production of steel, stainless steel and aluminum as raw materials. The resulting GHG emissions have a negative impact in terms of climate change | Procurement of products and services for equipment and systems (Group-wide) | Upstream value chain | Short-, medium- and long-term | n/a |
| Energy consumption | Negative actual impacts of energy consumption in the downstream value chain | Customers consume energy (mainly electricity) in the operation of their wash equipment. The resulting GHG emissions have a negative impact in terms of climate change | Sales markets and customer groups (Group-wide) | Downstream value chain | Short-, medium- and long-term | n/a |
| Climate change mitigation | Risk due to carbon tax | The introduction of or increases in carbon taxes can lead to price increases in procurement | Procurement of products and services (Group-wide) | Upstream value chain | Long-term | Transition risk |
Table continued on page 111
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Table continued from page 170
| Sustainability matter | Material IRO | Description of the IRO and impacts on people and the environment | Location in the business model | Location in the value chain | Time horizons | Classification as physical or transition risk |
|---|---|---|---|---|---|---|
| Climate change mitigation | Risk of changes in people's driving behavior | Climate change, increasing road congestion and greater environmental awareness could all result in vehicles being used less in order to protect the environment. This could lead to lower carwash use and thus fewer service callouts, reduced chemical consumption and reduced customer investment in vehicle wash equipment | Sales markets and customer groups (Group-wide) | Downstream value chain | Short-, medium- and long-term | Transition risk |
| Climate change mitigation | Opportunities from digitalization | Digitalization presents opportunities for WashTec and its downstream value chain to reduce GHG emissions, for example with remote services | Product development, sales markets and customer groups (Group-wide)) | Own operations and downstream value chain | Long-term | n/a |
WashTec considers the actual negative impacts related to energy consumption in its own operations from production, heating and the vehicle fleet to be of particular strategic and business relevance. As described in sections 9.1.3.1.1 and 9.2.2.2.1, the Group-wide strategy also covers GHG emission reductions for the Company's own production sites and subsidiaries. WashTec has already taken action in this regard in the past, such as installing resource-efficient heating technology, switching to electric vehicles and converting to certified green power at the German production sites.
WashTec expects future changes in decision-making with regard to energy consumption in the upstream value chain, as WashTec plans to give greater weight than ever to upstream value chain energy consumption when selecting suppliers.
To reduce energy consumption in the downstream value chain, WashTec plans to take energy efficiency into account in development activities.
The actual negative impacts related to energy consumption in the Company's own operations from production, heating and the vehicle fleet are directly related to the business model, as WashTec would not be able to operate in the market without energy sources such as electricity and fuel. WashTec has also embedded this in its strategy by setting reduction targets for Scope 1 and 2 GHG emissions.
WashTec assumes that the actual negative impacts related to energy consumption in its own operations from production, heating and the vehicle fleet will apply over the short, medium and long term. To minimize the related GHG emissions, WashTec takes action such as switching to electric vehicles and carbon-neutral energy sources. WashTec will continue to need energy for operations, however.
No material financial effects can yet be quantified in relation to changes in people's driving patterns, potential price increases due to carbon taxes or digitalization.
A resilience analysis has been carried out. The WashTec Group's business model is exposed to the above-mentioned material risks and opportunities. However, those risks and opportunities are not considered to be so material that they could have a radically negative impact on the business model. One reason is that action has already been taken to mitigate the risks. Secondly, there is an effective risk management system enabling early identification, assessment and monitoring of opportunities and risks.
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9.2.2.3 Impact, risk and opportunity management in relation to climate change
9.2.2.3.1 Policies related to climate change mitigation and adaptation
The Transition Plan with WashTec's Environmental and Energy Concepts is the strategic framework for all of the Company's environment- and energy-related activities. It sets out long-term targets and principles for continuous improvements in environmental performance, energy efficiency and resource conservation.
WashTec implements these plans using established management systems in accordance with ISO 14001 and ISO 50001. These systems are not policies in their own right, but are used as structured tools for methodological planning, control and monitoring in respect of the targets set out in the Environmental and Energy Concepts. The systematic approach based on the ISO standards ensures verifiable and consistent implementation of the strategic goals.
WashTec has operated a certified environmental management system in accordance with ISO 14001 for over two decades. The Augsburg, Grebenau, Recklinghausen and Nýrany sites are certified. In addition, an energy management system in accordance with ISO 50001 has been in place for almost ten years and with certification at the Augsburg, Grebenau, Recklinghausen and Nýrany sites.
The US production plant and the sales and service units outside Germany do not have ISO 14001 or 50001 certification but apply the same processes, standards and guidelines as the certified sites. This ensures uniform and consistent implementation of environmental and energy-related requirements in all parts of the Company.
A comprehensive Environmental and Energy Concept has been derived from the overarching transition plan. The Environmental and Energy Concept is divided into four sub-plans that build on each other. For structured implementation, the projects and targets set out in it are specified in five-year steps.
The first concept, the Environmental and Energy Concept 2025, was adopted in fiscal year 2020 and successfully completed in 2025. This first, successfully completed concept focused primarily on GHG emission reduction measures. These included switching heating energy sources to lower-emission options and the consistent use of green electricity at relevant sites.
Since then, WashTec has been working intensively on implementing the second concept, the Environmental and Energy Concept 2030, which was adopted in 2024. This aims for a 50% reduction in Scope 1 and Scope 2 (market-based) production plant GHG emissions by 2030 relative to the 2019 base year. This is a key milestone on the way to eliminating Scope 1 and Scope 2 GHG emissions by 2040.
The current Environmental and Energy Concept 2030 provides the framework for concrete action to reduce GHG emissions. It sets out a total of eleven projects that address various aspects of operational climate change mitigation, building on our long-established environmental and energy management system. This is subject to continuous development, with monitoring and reporting systems, regular internal audits and training programs to promote a shared understanding of climate change mitigation throughout the Group. In addition, clear responsibilities and governance structures are defined to ensure that the targets are properly implemented and tracked. The focus is on continuously increasing energy efficiency and the use of renewable energy. Furthermore, the concept includes resource-efficiency measures relating to both material use and energy consumption for general improvements in sustainable resource use.
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The Environmental and Energy Concept applies to the entire WashTec Group and has its main focus on own operations. Implementation is the responsibility of the Management Board and the Environment and Energy Team. This comprises representatives with major influence on strategic decision-making and representatives from energy-intensive units. These include the Management Board and the corporate heads of Fleet, Sales, Service, Production, Controlling, Corporate Sustainability, Development & Design, Product Management, Purchasing, and Integrated Management Systems.
With its Environmental and Energy Concept, WashTec addresses the impacts, risks and opportunities related to energy consumption and climate change mitigation. The measures under it are implemented in a multi-stage process ensuring systematic management and control.
The effectiveness of and compliance with the requirements of the above-mentioned iso standards are regularly verified and certified in internal and external audits. In addition, there are regular meetings of relevant teams whose members contribute significantly to the achievement of the targets in the Concept. For ongoing assessment, numerous indicators and metrics are collected, analyzed and communicated within the Company on a monthly basis.
Stakeholders' interests and views are taken into account via in-house representatives in the adoption of the transition plan and the Environmental and Energy Concepts.
WashTec does not have sustainability-related policies for the risk of changes in people's driving behavior or the risk of carbon taxation. However, current developments are continuously monitored, any need for action is reviewed and action is taken as appropriate. In this regard, WashTec is dependent on external factors such as market and product developments in the automotive industry, and also policy decisions.
In the area of digitalization, WashTec offers customers worldwide a solution for remote service support in the event of malfunctions. This can eliminate many service callouts and the related vehicle fleet GHG emissions. Responsibility for implementing this policy lies with Digital Solutions.
9.2.2.3.2 Actions and resources in relation to climate policies
A large number of actions have been identified in order to eliminate Scope 1 and Scope 2 GHG emissions by 2040. These vary in scope, the resources required and their respective GHG emission reduction potential.
A specific implementation year has been set for each action. This is regularly aligned with the strategic direction and adjusted as needed. Since the 2025 reporting year, the focus has increasingly shifted to implementing the actions under the Environmental and Energy Concept 2030.
In fiscal year 2025, electricity from renewable energy was purchased for the locations in Germany. This saved around 641 t CO₂e in fiscal year 2025. In addition, electrification of the vehicle fleet continued and systems and processes were optimized in terms of energy efficiency. The resulting reduction in GHG emissions amounts to around 85 t CO₂e per year.
Further electrification of the vehicle fleet is planned for fiscal years 2026 to 2028, which will save around 470 t CO₂e per year. With regard to heating systems, WashTec is planning to switch to heat pump systems powered entirely by renewable energy. This can reduce GHG emissions by around 160 t CO₂e per year.
WashTec is also continuously looking into potential solutions for decarbonizing the operation of the surface coating system, which requires high process temperatures in excess of 200°C. It is currently not economic to replace the existing curing ovens, for example with a hydrogen-based substitute. WashTec is closely monitoring developments with regard to green hydrogen, particularly in connection with an ongoing current market survey on electricity and hydrogen infrastructure needs, as the establishment of a grid infrastructure is a prerequisite to the use of green hydrogen.
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With regard to remote services, the Company has various measures in place to reduce its Scope 1 GHG emissions. For example, digital modules can be used to identify any spare parts required and send them to a customer in advance. WashTec can also deploy service technicians remotely by video. In this way, service callouts can be resolved remotely with support from the equipment operator's personnel. Overall, this can eliminate many on-site service callouts and thus GHG emissions. The potential GHG reduction from remote services has not been quantified.
WashTec addresses the reduction of Scope 3 GHG emissions in two main ways: firstly, in the selection process for new suppliers and, secondly, through the requirements for the product development process specified in the Design Guideline. WashTec addresses the upstream value chain with the supplier selection process and both the upstream and downstream value chain with the Design Guideline.
WashTec does not require any significant financial resources in the form of CapEx or OpEx to implement the various actions.
9.2.2.4 Metrics and targets related to climate change
9.2.2.4.1 Targets related to climate change mitigation and adaptation
WashTec is pursuing the strategic target of complete decarbonization in Scope 1 and Scope 2 by 2040 (gross target; market-based) for the entire WashTec Group. The long-term target is stated as a gross target because WashTec is aiming to eliminate GHG emissions without any use of offsetting or other compensation mechanisms. As the first milestone towards this, the Company aims, in relation to the production plants, for a 30% reduction in Scope 1 and 2 GHG emissions (market-based) by 2025 relative to the 2019 base year. The next milestone is set for 2030 and consists of a reduction of 50% compared to the base year, again in relation to the countries with production plants.
The reduction target is formulated as a combined target covering Scope 1 and Scope 2. There is therefore no provision for a separate breakdown stating which GHGs or scopes are covered. This target system provides an integrated view of GHG emission reductions and supports strategic management in relation to the Environmental and Energy Concept 2030.
In the base year, 2019, Scope 1 and Scope 2 GHG emissions in the countries with production plants totaled 8,525 t CO₂e. To achieve the reduction targets, WashTec is focusing primarily on actions to increase energy efficiency, the use of GHG-emission-free technologies and the switch to electricity from renewable sources.
An approximately 34% reduction in absolute GHG emissions in fiscal year 2025 relative to the 2019 base year confirms that the 2030 reduction path is on target. The targets set out in the Environmental and Energy Concept 2030 require electrification of the entire vehicle fleet. The groundwork for this was laid in 2025 with the goal of fully electrifying the German fleet by 2030. This is already reflected in steadily growing requests for electric vehicles among perquisite car and fleet car users.
Confirming of the 2030 reduction path means that the long-term decarbonization target for 2040 is also confirmed to a large extent.
Adherence to the 2030 and 2040 reduction pathway is ensured and regularly reviewed by monitoring various metrics. Account is also given here to constantly changing extraneous circumstances. The Company is sticking to its long-term target of completely decarbonizing business operations by 2040.
The GHG emissions addressed in the Environmental and Energy Concept 2030 correspond in their entirety to the Scope 1 and 2 GHG emissions recorded in our GHG emissions inventory. No relevant GHG emissions are omitted.
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115
WashTec has not yet set any specific reduction targets for Scope 3 GHG emissions. The setting of such targets is planned in connection with implementing a future transition plan for Scope 3.
The basis for determining the targets comprised external and internal conditions at the time. Sector-specific and cross-sector decarbonization paths were not taken into account. In the case of the vehicle fleet, the WashTec Group is dependent on technical progress and the related feasibility of using alternative propulsion technologies. A similar challenge applies to the decarbonization of the surface coating line, as this requires high process temperatures.
It has been assumed in general that announced policy measures and strategies to combat climate change will be implemented. As WashTec's transition plan relates solely to Scopes 1 and 2, it is not possible to provide any disclosure in relation to the achievement of the 1.5-degree target under the Paris Climate Agreement. The transition plan has not yet undergone external validation; the GHG reduction targets are not science-based.
Stakeholders' interests and views are taken into account in the setting of GHG emission reduction targets via in-house proxies.
The table below shows the relevant decarbonization levers planned for target achievement by 2030 under the WashTec Environmental and Energy Concept 2030. The actions have been assigned to each scope, systematically classified, and quantified in terms of reduction potential. Progress and developments in decarbonization projects was taken into account in a feedback process. This explains the slight deviation from the reduction potential reported in the Annual Report 2024. Different climate scenarios were not considered when determining the decarbonization levers.
The decarbonization levers through to 2030 can be classified and quantified as follows:
WashTec Group decarbonization levers
| Category | GHG accounting | Quantification (t CO₂e) | Percentage of reduction target |
|---|---|---|---|
| Electrification | Scope 1 | 1,112 | 45% |
| Use of renewable energy sources | Scope 2 | 595 | 24% |
| Fuel switching | Scope 1 | 334 | 14% |
| Energy efficiency | Scope 1 | 266 | 11% |
| Decarbonization of the energy mix | Scope 2 | 48 | 2% |
| Energy efficiency | Scope 2 | 45 | 2% |
| Production site closure | Scope 2 | 22 | 1% |
| Fuel switching | Scope 1 | 15 | 1% |
| Total | 2,437 | 100% |
The actions up to 2030 that affect the level of Scope 1 GHG emissions add up to potential reductions of approximately 1,727 t CO₂e. Projects assigned to Scope 2 (market-based) contribute further potential reductions of approximately 710 t CO₂e.
Together, the actions in the table have a combined reduction potential in Scope 1 and 2 in fiscal year 2025 of 2,437 t CO₂e by 2030.
WashTec monitors progress towards the achievement of the climate targets by tracking Group-wide Scope 1 and Scope 2 GHG emissions during the year. The results are regularly evaluated and are reported to the Management Board to enable transparent management and early adjustment of the actions.
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9.2.2.4.2 Energy consumption and mix
The scope of the disclosures on energy consumption and energy mix depends on whether and to what extent WashTec's activities come under the definition of high climate impact sectors listed in sections A to H and L of Regulation (EU) 2022/1288. Internal analysis has shown that the production of equipment is to be classified under German Classification of Economic Activities wz 2008 (NACE Rev. 2) as class C 28.99.0, "Manufacture of other special-purpose machinery n.e.c." and the manufacture of AUWA brand cleaning products under wz 2008 (NACE Rev. 2) as class C 20.41 "Manufacture of soap and detergents, cleaning and polishing preparations."
All of WashTec's business activities and the net revenue generated from them therefore relate to high climate impact sectors. Revenue from high climate impact sectors therefore corresponds to total Group revenue (see also the Consolidated Income Statement on page 163).
WashTec's energy consumption by energy source is as follows*.
| Energy consumption and mix | 2025 | 2024 |
|---|---|---|
| Fuel consumption from coal and coal products (MWh) | 0 | 0 |
| Fuel consumption from crude oil and petroleum products (MWh) | 26,183 | 25,312 |
| Fuel consumption from natural gas (MWh) | 3,800 | 3,453 |
| Fuel consumption from other fossil sources (MWh) | 0 | 0 |
| Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) | 4,214 | 3,607 |
| Total fossil energy consumption (MWh) | 34,196 | 32,372 |
| Percentage of fossil sources in total energy consumption (%) | 91% | 91% |
| Consumption from nuclear sources (MWh) | 641 | 566 |
| Share of consumption from nuclear sources in total energy consumption (%) | 2% | 2% |
| Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh) | 0 | 0 |
| Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) | 2,422 | 2,307 |
| --- | --- | --- |
| Consumption of self-generated non-fuel renewable energy (MWh) | 230 | 143 |
| Use of renewable energy (MWh) | 2,652 | 2,450 |
| Share of renewable sources in total energy consumption (%) | 7% | 7% |
| Energy generation from renewable sources | 266 | 172 |
The WashTec Group's total energy consumption in fiscal year 2025 was 37,489 MWh (prior year: 35,388 MWh).
Based on consolidated revenue, this results in an energy intensity of 75 MWh/€m (prior year: 74 MWh/€m). The consolidated revenue figure corresponds to consolidated revenue in the consolidated income statement.
WashTec does not have any fuel consumption from coal, coal products or other fossil sources other than natural gas and heating oil. Nor is there any fuel consumption from biomass, biofuels, biogas or green hydrogen.
Energy consumption data across all energy sources – including electricity, heat energy and fuels – is collected centrally by the Energy Management department. At the ISO 50001-certified plants in Germany and the Czech Republic and the non-ISO 50001-certified plant in the USA, monthly energy consumption data is recorded as part of systematic data collection for energy-related metrics.
The consumption data required from all international service and sales organizations is obtained in a central data request. Once received, the data is plausibility-checked by the corporate Energy Management department, primarily against historical consumption data.
*The calculation methodology was changed for the 2025 financial year. For data consistency, the same methodology was also applied retrospectively to the figures for fiscal year 2024.
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WashTec's energy consumption can be broken down into the following categories and sources. Consumption data is collected by category as follows:
- Fuel consumption from crude oil and petroleum products: Recorded from supplier invoices for diesel, gasoline, forklift gas, heating oil and liquefied gas
- Fuel consumption from natural gas: Recorded from natural gas supplier invoices
- Consumption of electricity and heat from fossil sources: Determined based on the fossil share according to electricity and district heat provider billing data
- Total energy consumption from nuclear sources: Calculated on the basis of the nuclear share in the local electricity mix
- Consumption of purchased electricity and heat from renewable sources: Determined based on the renewables share according to provider billing data
- Consumption of self-generated renewable energy: Aggregated using an internal monitoring system for self-consumed electricity from photovoltaic installations
- Energy generation from renewable sources: Aggregated using an internal monitoring system for electricity generated by photovoltaic installations
The electricity and district heating energy mix used in the calculations was obtained from the local provider in the case of the German plants and from the Low Carbon Power database for the international sites. As complete data was not yet available for 2025 at the time of data collection, corresponding data from 2024 was used for the following countries: USA, UK, Netherlands, Australia, New Zealand and Canada.
9.2.2.4.3 Gross Scopes 1, 2 and 3 and Total GHG emissions
Total market-based GHG emissions in the WashTec Group across all scopes amounted to 181,234 t CO₂e in fiscal year 2025 (prior year: 184,902 t CO₂e). Total location-based GHG emissions in the WashTec Group across all scopes amounted to 181,997 t CO₂e in fiscal year 2025 (prior year: 185,902 t CO₂e).
Based on consolidated revenue, this results in a market-based GHG intensity of 363 t CO₂e/Em (prior year: 388 t CO₂e/Em) and a location-based GHG intensity of 365 t CO₂e/Em (prior year: 390 t CO₂e/Em).
The consolidated revenue figure corresponds to consolidated revenue in the consolidated income statement.
The categories "3.2 Capital goods," "3.5 Waste generated in operations," "3.6 Business travel" and "3.7 Employee commuting" were not included again for fiscal year 2025 due to non-materiality.
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| Retrospective | Target | |||||||
|---|---|---|---|---|---|---|---|---|
| 2019 | 2024 | 2025 | %2025/2024 | 2030 | 2040 | 2050 | Annual % target/base year | |
| Gross Scope 1 GHG emissions; | ||||||||
| Scope 1 GHG emissions (t CO2e) | - | 7,752 | 7.891 | 102% | - | - | - | - |
| GHG emissions from regulated emissions trading schemes (%) | - | 0% | 0% | - | - | - | - | - |
| Gross Scope 2 GHG emissions; | ||||||||
| Gross location-based Scope 2 GHG emissions (t CO2e) | - | 1,909 | 1,784 | 93% | - | - | - | - |
| Gross market-based Scope 2 GHG emissions (t CO2e) | - | 909 | 1,021 | 112% | - | - | - | - |
| Gross Scope 1 and Scope 2 GHG emissions (production sites; market-based) in line with target (t CO2e) | 8,525 | 5,681 | 5,665 | 100% | 4,263 | 0 | 0 | 5% |
| Significant gross Scope 3 GHG emissions | ||||||||
| Total gross indirect (Scope 3) GHG emissions (t CO2e) | Full coverage of Scope 3 from fiscal year 2024 only | 176,241 | 172,322 | 98% | There is currently no specific absolute target for the reduction of Scope 3 GHG emissions. | |||
| 3.1 Purchased goods and services | 48,995 | 64,621 | 132% | |||||
| 3.2 Capital goods | 1,338 | - | - | |||||
| 3.5 Waste generated in operations | 21 | - | - | |||||
| 3.6 Business travel | 1,125 | - | - | |||||
| 3.7 Employee commuting | 898 | - | - | |||||
| 3.11 Use of sold products | 119,784 | 103,591 | 86% | |||||
| 3.12 End-of-life treatment of sold products | 4,080 | 4,110 | 101% | |||||
| Total GHG emissions | ||||||||
| Total GHG emissions (location-based) (t CO2e) | - | 185,902 | 181,997 | 98% | ||||
| Total GHG emissions (market-based) (t CO2e) | - | 184,902 | 181,234 | 98% |
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GHG emissions in relation to consolidated revenue, employee numbers and Group-wide working hours are broken down as follows:
WashTec GHG emissions - countries with production plants
9.2.2.4.4 Underlying assumptions and methodologies for calculation of the corporate carbon footprint
WashTec's GHG emissions are calculated in accordance with the Greenhouse Gas Corporate Accounting and Reporting Standard (GHG Protocol). Unless otherwise specified, the following seven greenhouse gases were taken into account: Carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF₆) and nitrogen trifluoride (NF₃).
To ensure comparability, all GHG emissions were converted into CO₂ equivalents (CO₂e) using the relevant GHG emission factors. This was done using the latest IPCC data/conversion factors. GHG emissions are calculated by multiplying the amount of energy by the GHG emission factor for the energy source. Market-based emission factors are used where provided by the energy supplier. If no specific values are available, use is made of location-based GHG emission factors for the relevant country or region.
WashTec has no operational control over associated companies, joint ventures or investment entities. Scope 1 and Scope 2 GHG emissions are therefore not disclosed separately for the consolidated accounting group.
9.2.2.4.5 Databases used
To calculate the corporate carbon footprint, WashTec uses third-party life cycle databases that are listed online on the GHG Protocol website. Life cycle databases contain standardized environmental and emissions data over the entire life cycle. They cover emissions from activities such as resource extraction, production, transportation, use and disposal.
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The use of databases means that GHG emissions can also be determined where direct measurements are unavailable – in the supply chain (Scope 3), for example. Life cycle databases thus provide a consistent, verifiable and comparable calculation basis in accordance with prevailing standards.
That is, WashTec uses publicly accessible databases for suitable GHG emission factors.
9.2.2.4.6 Assumptions and methodologies for the calculation of Scope 1 GHG emissions
WashTec's Scope 1 GHG emissions mainly relate to the vehicle fleet. The foreign subsidiaries record their fuel consumption on the basis of fuel bills, check it in-house and send the data regularly to the corporate Energy Management department in Germany. At the German sites and the French site, the data is collected automatically using a fleet management system that records refueling stops for each vehicle in real time and continuously tracks consumption data. Group-wide fuel consumption is then consolidated and converted into $\mathrm{CO}_{2}$ equivalents using GHG emission factors from recognized databases. The GHG emission factors for gasoline and diesel are taken from the DEFRA database. For fossil fuels and refrigerants, the consumption values are taken in all cases from invoices and the matching GHG emission factors obtained either directly from the energy suppliers or again from the DEFRA database.
All consumption data is collated centrally in a reporting system or in standardized recording formats, validated and plausibility-checked. This systematic recording and tracking aims to ensure that all consumption data is complete, verifiable and consistent before multiplying with the corresponding GHG emission factors to calculate GHG emissions.
9.2.2.4.7 Assumptions and methodologies for the calculation of Scope 2 GHG emissions
Scope 2 GHG emissions at WashTec mainly relate to purchased electricity at the US and Czech production plants and to purchased district heating at the German production sites. The resulting GHG emissions are calculated using both the market-based approach (market-based GHG emission factors) and the location-based approach (location-based GHG emission factors). The share of green electricity at WashTec is around $56\%$ in fiscal year 2025, of which $100\%$ comes from bundled electricity contracts.
The consumption data for the stated energy types is collected centrally. For the German sites, the data is taken directly from energy suppliers' invoices. The plants in the Czech Republic and the USA report their monthly consumption data on the basis of supplier bills to the corporate Energy Management department, where the data is recorded and processed. It is then converted into $\mathrm{CO}_{2}$ equivalents. In the absence of specific GHG emission factors from providers, WashTec uses the DEFRA database.
Electricity consumption from vehicle fleet electrification is recorded separately for vehicle charging on and off Company premises. Off-premises vehicle charging (except using a charging card in Germany) is recorded using the electricity mix for the country where the vehicle user is based. The corresponding emission factors are taken from the Low Carbon Power website. Charging vehicles using Company charging points at the German production sites does not generate any GHG emissions due to the use of $100\%$ green electricity. Similarly, no GHG emissions are generated when vehicles are charged using the charging card provider in Germany. This is because the charged quantities of electricity are exclusively classified as green electricity due to purchases of certificates of origin by the provider in 2025 and are therefore recorded at $0\mathrm{gCO}_{2}\mathrm{e} / \mathrm{kWh}$.
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9.2.2.4.8 Assumptions and methodologies for the calculation of Scope 3 GHG emissions
The first step was to analyze which Scope 3 categories are not relevant for emission accounting purposes, as those categories cannot be assigned to any of the WashTec Group's business activities. This relates to the following categories:
- 3.3 Fuel- and energy-related activities
- 3.8 Upstream leased assets
- 3.10 Processing of sold products
- 3.13 Downstream leased assets
- 3.14 Franchises
- 3.15 Investments
Data was collected on each of the following categories in 2024, each of which contributes less than 1% to the total volume of GHG emissions. As these categories are not material, data on them was not collected a second time in fiscal year 2025 and they are no longer reported.
- 3.2 Capital goods
- 3.5 Waste generated in operations
- 3.6 Business travel
- 3.7 Employee commuting
Categories "3.4 Upstream transportation and distribution" and "3.9 Downstream transportation and distribution" were not covered separately for the following reasons:
-
3.4 Upstream transportation and distribution
For this category, WashTec assumes that delivery – i.e., upstream transportation and distribution – is already included in the product carbon footprint of the purchased goods. Freight forwarding services are additionally covered by category "3.1 Purchased goods and services." Possible overlaps in GHG emissions are deliberately disregarded as any such overlaps are considered to be non-material overall. -
3.9 Downstream transportation and distribution
The majority of transportation and distribution of WashTec products comes under category "3.1 Purchased goods and services." As self-collection by customers accounts for a minor proportion and is not included, category "3.9 Downstream transportation and distribution" is considered to be non-material.
The calculation for the individual categories considered material by WashTec, based on the requirements of the GHG Protocol, is described in the following.
- 3.1 Purchased goods and services
GHG emissions in category "3.1 Purchased goods and services" were calculated using the Data.gov database, which is based on cradle-to-gate GHG emission factors. GHG emissions in this category were calculated on the basis of the Group-wide procurement volume for each product group (spend-based method). For around 80% of the procurement volume, they were calculated in detail on the basis of material group totals. For the remaining 20%, they were extrapolated.
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3.11 Use of sold products
The methodology for calculating GHG emissions from use of sold products is based on the GHG Protocol calculation method for direct use-phase emissions from products that directly consume energy.
The calculation of GHG emissions is primarily based on the vehicle wash equipment sold in 2025. As the wide variety of different configurations and operating conditions makes it impractical to determine the precise energy consumption of each individual system, the calculation is based on reference gantry carwashes. For each product family, a typical reference system is specified whose energy consumption is either determined using measured data or theoretically calculated based on the installed electrically powered equipment. This reference data is used as the basis for extrapolation to the average service life, taking into account differences between product families. Because the majority of equipment is digitally connected, WashTec also has precise data on the average annual number of vehicle washes per system.
Total annual energy consumption is converted with continent-specific GHG emission factors. The country with the largest quantity supplied is used as the reference for each continent. The country-specific GHG emission factors published for that country are used as a representative figure for all other countries on the same continent.
The GHG emission factors were calculated with the aid of Low Carbon Power, an organization which draws on recognized data sources such as Eurostat.
3.12 End-of-life treatment of sold products
The methodology for calculating emissions from the end-of-life treatment of sold products is based on the waste type specific method. To determine the GHG equivalent data for the weight-based waste fractions, a reference gantry carwash was completely dismantled and broken down into individual waste fractions. It is not practicable to carry out such dismantling on all variants, product families and customer-specific configurations as there are too many different permutations.
The quantities determined for each waste fraction were then multiplied by GHG emission factors from the DEFRA database to calculate the GHG emissions from the end-of-life treatment of a reference gantry carwash.
Finally, the calculated GHG emission figure was extrapolated, using an equipment-unit equivalent, to the number of units sold in 2025 in order to determine the total for all product families.
For washing chemicals, a total wastewater figure for 2025 is calculated based on the total washing chemicals sales volumes, the average quantity used per wash and the fresh water consumption per wash. The GHG weighting for this part of the category is then determined using a volume-based GHG equivalent figure. The underlying GHG emission factors are also from the DEFRA database.
Overall, the data for the calculation of Scope 3 GHG emissions is therefore based exclusively on secondary data.
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9.2.3 Disclosures on pollution
9.2.3.1 Impact, risk and opportunity management in relation to pollution
9.2.3.1.1 Material impacts, risks and opportunities in relation to pollution
The process to identify and assess material impacts, risks and opportunities is described, together with the methodologies, assumptions and tools used, in sections 9.1.4.1 and 9.1.4.3.
Overall, as in the prior year, WashTec has identified one material impact related to pollution of water. This material impact related to pollution of water, together with its location in the business model and value chain, is shown in the table below.
| Sustainability matter | Material IRO | Description of the IRO and impacts on people and the environment | Location in the business model | Location in the value chain | Time horizon |
|---|---|---|---|---|---|
| Pollution of water | Negative actual impact of wastewater after car washing | Washing chemicals are an essential part of the vehicle cleaning process. After car washing, the washing chemicals are discharged into the sewage system together with the process water and thus pollute the wastewater. | Sales market and customer groups for washing chemicals (Europe-wide) | Downstream value chain | Short-, medium- and long-term |
9.2.3.1.2 Policies related to pollution
In 2021, WashTec launched the proprietary AuWA Green Car Care product range. With the AuWA Green Car Care product range, WashTec offers customers a solution for using more environmentally compatible washing chemical products.
The AuWA Green Car Care product group is subject to a specially developed criteria catalog for sustainable washing chemicals, as there are currently no generally applicable standards in the industry. Adherence to these criteria is ensured by systematic formulation and production control and is monitored and documented by an independent testing organization, SGS Institut Fresenius. The criteria are listed in detail in the next section.
In this product range, WashTec combines sustainability-related optimizations along the entire value chain for its washing chemicals. This ranges from procurement of the raw materials to production, use and recycling. The most relevant factors in terms of water pollution are the selection of raw materials and the quantity of detergent used per wash.
As AuWA products are mostly sold in Europe, the main impact of the AuWA Green Car Care policy is on the downstream value chain in Europe.
The policy is implemented by the management of AuWA.
9.2.3.1.3 Actions and resources in relation to pollution
WashTec is constantly developing new products that meet the AuWA Green Car Care criteria. Existing products are adapted to meet the criteria for AuWA Green Car Care. With very few exceptions, newly developed AuWA products meet the AuWA Green Car Care criteria.
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A key factor here is the selection of raw materials. In the AUWA Green Car Care product range, for example, WashTec uses plant-based detergents. The products in this product line are free from nitrilotriacetic acid (NTA), colorants, halogen acids, phosphates, hydrocarbons and svHCs.
These actions facilitate the degradability of the chemical products in process water. Focusing on the necessary minimum in formulation also helps minimize water pollution. For the various vehicle surface cleaning and care applications, individual ingredients are selected according to function. The aim is wherever possible to use one single key ingredient per function.
The majority of the product range sold in the Scandinavian countries is also certified with the Nordic Swan Ecolabel.
WashTec incorporates the AUWA Green Car Care products in selling activities by regularly training sales staff and providing operators with information on the criteria, the differences and the advantages over conventional washing chemicals.
The activities referred to here relate to both the upstream and the downstream value chain. WashTec does not require any significant CapEx or OpEx to implement the various actions.
9.2.3.2 Metrics and targets related to pollution
The AUWA Green Car Care concept addresses water pollution in the downstream value chain.
No measurable targets have yet been set due to the complexity of the subject matter. WashTec plans to introduce measurable water pollution-related targets from fiscal year 2026.
Measures for WashTec to track the effectiveness of the AUWA Green Car Care approach and the related actions include continuous internal and external monitoring of formulations by Recipe & Production Control.
9.2.4 Disclosures on water resources
9.2.4.1 Impact, risk and opportunity management in relation to water resources
9.2.4.1.1 Material impacts, risks and opportunities in relation to water resources
The process to identify and assess material impacts, risks and opportunities is described, together with the methodologies, assumptions and tools used, in sections 9.1.4.1 and 9.1.4.3.
In total, one impact and one risk were identified as material. The material water resources-related impact and risk and their location in the business model and value chain are shown in the table below.
| Sustainability matter | Material IRO | Description of the IRO and impacts on people and the environment | Location in the business model | Location in the value chain | Time horizons |
|---|---|---|---|---|---|
| Water consumption | Negative actual impacts of water consumption | Water consumption in the operation of the customers' equipment exacerbates water shortages. | Sales markets worldwide, particularly in water-stressed areas | Downstream value chain | Short-, medium- and long-term |
Table continued on page 125
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Table continued from page 124
| Sustainability matter | Material IRO | Description of the IRO and impacts on people and the environment | Location in the business model | Location in the value chain | Time horizons |
|---|---|---|---|---|---|
| Water scarcity | Risk of restrictions or bans on the use of water | Risk that customers may no longer be able to operate their equipment due to temporary or permanent restrictions or bans on the use of water | Sales of equipment, service and washing chemicals; research and development | Downstream value chain | Short-, medium- and long-term |
9.2.4.1.2 Policies related to water resources
To reduce water consumption in the downstream value chain, WashTec has implemented a sustainable design guideline. Technical innovations in line with this guideline are promoted in the development process. One dimension in this regard is minimizing water consumption per wash on equipment in operation on customer premises. All design employees have been trained on the sustainable design guideline. This applies worldwide and has an impact on WashTec's own operations and indirectly on the upstream value chain. Implementation of the sustainable design guideline in new designs is monitored by the WashTec Europe Environment Officer. Responsibility for its implementation lies with the Management Board.
WashTec is already responding to the risk of water scarcity and the negative impacts of water consumption by offering its customers water recycling systems that can reduce fresh water consumption by a large proportion. On average, a gantry carwash without a water recycling system requires approximately 120-170 liters of water (fresh and process water) per wash. A WashTec gantry carwash with a water recycling system uses only about 20% as much water as manual washing.* WashTec sells water recycling systems as an optional extra feature on automated vehicle washing systems. They can also
be retrofitted. In the water recycling system, used water from the carwash is collected in a settling pit or sludge trap. Suspended solid particles separate out by sedimentation and settle as sludge. The remaining water is then fed via a pump pit and filtration system to a storage tank for recirculation. This recirculated water can then be reused in the carwash.
WashTec continually verifies that the water recycling systems meet current environmental standards and customer requirements.
With the policy on water recycling systems, WashTec also addresses the reduction of water consumption in areas at water risk.
Water consumption in the Company's own operations plays a minor role relative to water consumption for car washing. WashTec therefore does not see any material impacts, risks and opportunities in this regard.
- These are average figures that can vary from customer to customer. The precise amount of water needed for a gantry carwash significantly depends on factors such as program selection, fitted equipment, on-site temperature, seasonal vehicle soiling, vehicle size and legal requirements. A conveyor tunnel carwash has significantly higher water consumption than a gantry carwash. Consumption in conveyor tunnel carwashes is significantly more dependent on the factors just mentioned and is therefore not shown separately.
** All consumption figures cited in product descriptions are examples. The many possible system permutations and differences in user choices make it impossible to state standardized consumption data.
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9.2.4.1.3 Actions and resources in relation to water resources
The following actions are implemented on a continuous basis to promote water efficiency:
WashTec is deploying more staff in activities related to water recycling systems in order to step up sustainability and resource efficiency efforts on the products side now and in the future.
WashTec helps customers obtain transparency about their water consumption, for example by factory-fitting water meters and providing the ability to display fresh and service water usage on the WashTec digital platform.
WashTec is intensifying worldwide sales activities for water recycling systems.
The decision as to whether, and to what extent, a water recycling system is used with wash equipment is up to the equipment operator and is frequently subject to official approval. It is not made on the basis of sustainability considerations alone, but by weighing a large number of different factors. WashTec can therefore only indirectly influence the number of water recycling systems installed with its carwashes.
No material financial resources are needed to implement the actions described in this section.
The actions described here also have an effect in relation to areas at water risk, including areas of high water stress.
9.2.4.2 Metrics and targets related to water resources
As part of its sustainability strategy, WashTec focuses among other things on reducing the water consumption of its vehicle wash equipment.
The use of water recycling systems on customer equipment helps reduce water consumption in the downstream value chain and the risk of restrictions on carwash operation.
The following ratio represents WashTec's influence on professional automated vehicle washing in terms of the recycling of service water for car washing as a whole:
$$
\frac{\text{Number of WashTec water recycling systems installed worldwide}}{\text{Number of WashTec vehicle washes installed worldwide}} \quad \left( \frac{\text{"WashTec water recycling ratio"}}{\text{"WashTec water recycling ratio}} \right)
$$
WashTec tracks performance on the WashTec water recycling ratio in its internal reporting.
As of the December 31, 2025 reporting date, the WashTec water recycling ratio was 23% (prior year: 22%).
The number of installed WashTec vehicle washes includes gantry carwashes, truck and bus washes and conveyor tunnel carwashes. The data for this comes from the CRM system, which is kept up to date by sales staff. The data is queried as of the reporting date. One limitation of obtaining data from the CRM system is that existing or former customers do not always notify WashTec of the current installation status of a carwash or water recycling system. There may also be data entry errors (such as failure to update the status of a carwash or water recycling system, or delays in updating).
The aim is to continuously increase the WashTec water recycling ratio worldwide.
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This is a voluntary, non-quantifiable target set by the WashTec Group's Management Board. The target also relates to areas at water risk and water stressed areas.
To track the effectiveness of its policies and actions, WashTec tracks the water recycling ratio and reports it to the Management Board on an annual basis. This makes it possible to measure changes relative to the prior period. Recording and reporting of the water recycling ratio is planned to be switched to a quarterly basis from fiscal year 2026.
9.2.5 Resource use and circular economy
9.2.5.1 Impact, risk and opportunity management in relation to resource use and circular economy
9.2.5.1.1 Material impacts, risks and opportunities and their interaction with strategy and business model
WashTec has identified a total of two circular economy-related impacts as material. In the prior year, these impacts were still classified as non-material. The impacts and their location in the business model and value chain are shown in the table below.
| Sustainability matter | Material IRO | Description of the IRO and impacts on people and the environment | Location in the business model | Location in the value chain | Time horizons |
|---|---|---|---|---|---|
| Resources inflows, including resource use | Negative actual impacts of resource use | Negative impacts of the use of raw materials in production and service | Production and service worldwide | Upstream value chain | Short-, medium- and long-term |
| Waste | Negative actual impacts of waste | Negative impacts of waste generation | Production and service worldwide | Own operations | Short-, medium- and long-term |
9.2.5.1.2 Policies related to resource use and circular economy
As a machinery manufacturer, WashTec is particularly reliant on the efficient use of materials and resources. The Company has therefore developed policies in the area of resource use and circular economy that consider both environmental and economic aspects and aim to reduce material negative impacts.
WashTec requires suppliers to meet environmental and social standards. Materials from sustainable sources are always preferred subject to criteria such as quality, availability and cost. This addresses negative impacts relating to resource use in production and service. For this purpose, the Global Purchasing department has developed Group-wide work instructions for selecting suppliers and conducting supplier audits. Global Purchasing is responsible for implementing the instructions.
The design of equipment products is based on proven, robust technology and modular construction. Almost all equipment components are designed so that they can be repaired or replaced by qualified personnel. This considerably extends system service life, conserves resources and reduces the need for customers to invest in completely new replacements.
A sustainable design guideline supplementing the international WashTec environmental policy specifies fundamental principles of sustainable development and design. Whether a product follows circular economy principles is already determined at the design stage. The sustainable design guideline means that WashTec already addresses sustainability in product development, including the reparability of individual components or assemblies and, by the choice of raw materials, ensuring a high end-of-life material recycling rate. Opportunities for reusing components (such as control units) are sought at all times. By working exclusively with certified waste management con
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tractors, WashTec ensures that vehicle wash equipment is not only designed for recycling, but is also recycled in practice.
Sustainability adds a fifth dimension to the development process alongside function, quality, cost and time and is equally important to the other dimensions.
WashTec regards sustainable design as an ongoing process of optimizing products to use fewer resources and reduce environmental impact.
A core element of the sustainable design guideline is the selection of materials, substances and components. It specifies that in this selection, the following criteria must be met as far as possible:
- Promotion of the circular economy through the use of reusable or recyclable materials
- Resource conservation through the use of recycled material
- Reduced use of fossil-based inputs and their substitution with renewable resources
All design employees have been trained on the sustainable design guideline. This applies worldwide and has an impact on WashTec's own operations and indirectly on the upstream value chain. Implementation of the sustainable design guideline in new designs is monitored by the WashTec Europe Environment Officer. Responsibility for its implementation lies with the Management Board.
An analysis of the components of a gantry carwash on dismantling at the end of its life cycle showed more than 90% of its materials to be recyclable. Work is constantly underway to enable recycling of the approximately 10% that remains.
WashTec also regularly examines system components to identify individual parts for which repair or refurbishment is economically and technically viable. This avoids re
placement with new parts, extends system service life and saves valuable resources. Large numbers of components are already available in refurbished form from the spare parts warehouse.
The plants in Germany and the Czech Republic also have work instructions for waste disposal. These have the aim of reducing waste volumes and increasing separate collection quotas. Furthermore, all employees in Germany receive mandatory training on the subject of waste.
In summary, the policies described above are also geared to the following:
- Minimisation of primary raw material
WashTec aims to continuously reduce the proportion of primary materials in its products and processes. To this end, WashTec increasingly uses secondary raw materials such as recycled steel, aluminum and plastics. The use of secondary raw materials is a focus of the sustainable design guideline.
- Sustainable sourcing and use of renewable resources
The use of renewable resources is a focus of the sustainable design guideline.
The resource use and circular economy policies are geared towards promoting the transition from linear to circular business practices. They address all materials resource use and circular economy-related impacts, risks and opportunities.
9.2.5.1.3 Actions and resources in relation to resource use and circular economy
WashTec has implemented a range of actions to optimize resource use and integrate circular economy principles into the value chain. A key project to highlight in the reporting year was the investment in a bag-in-box filling system. This is a packaging system in
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which washing chemicals are filled in a flexible plastic bag that is placed in a sturdy cardboard box. This reduces the amount of petroleum-based material used for packaging and improves recyclability.
The measures implemented in the areas of resource use and the circular economy cover the following areas in particular:
- Material efficiency programs
- Material use optimization by switching to smart solutions such as bag-in-box, which is used instead of plastic canisters and reduces plastic material usage by more than 80%
- Implementation of digital processes to reduce paper use and the associated transportation, including display screens in production, digital internal and external correspondence, and continuous efforts to reduce production waste
- Development and introduction of packaging instructions for suppliers to ensure resource-efficient packaging of inbound deliveries
- Recycling, reuse and upcycling
- Total avoidance of composite packaging and use of 100% recyclable packaging.
- Systematic return of packaging (including filling material, wooden crates, cardboard boxes, transport racks, film wrapping and canisters) to manufacturers or reprocessors, or direct reuse in transport processes
- Full recycling of energy chains, which are returned to the supplier at the end of their life cycle and used to produce new chains
- Product design for the circular economy
- Development of modular equipment components for easy repair, disassembly and reuse
- Take-back and refurbishment programs
- Development of a refurbishment process for items such as control units and redistribution through the spare parts market
- Implementation of a closed material cycle for empty canisters with self-return to the canister producer for reprocessing
With these measures, WashTec is consistently pursuing the goal of shaping the transition from linear to circular business practices and conserving resources. They address different parts of the value chain, depending on the type of measures involved: Some, such as energy- and resource-efficiency measures, directly impact the Company's own operations. Others, such as packaging requirements or procurement policies, relate to the upstream value chain. Still others affect the use and end-of-life treatment of products in the downstream value chain.
9.2.5.2 Metrics and targets related to resource use and circular economy
WashTec plans to increasing resource efficiency and embed circular economy principles in all relevant business processes. This notably involves increased use of circular product design, for example by making products more durable and repairable, improving the scope for dismantling and increasing the recyclability of equipment and systems. Additionally, WashTec is working to increase the recycled material use rate, minimize the use of primary resources and make increased use of sustainably sourced, renewable
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materials in line with the cascade principle. The Company also pursues efficient and proper waste management throughout the entire product life cycle, together with other measures that contribute to responsible resource use and advance the circular economy.
No quantitative targets have been set to date for the reduction of resource inflows.
A separate collection quota of at least 90% has been adopted as a voluntary target for waste at the Augsburg plant. The target is in line with the WashTec environmental policy. This specifies that pollution such as waste is to be avoided wherever possible and minimized by means of suitable processes and methods (separate collection and high-quality recycling of waste).
The separate collection quota is the quantity of waste collected in separate fractions within the Company as a percentage of total waste generated in all areas at the Augsburg site.
The target is stated as a percentage and relates to the recycling level in the waste hierarchy. It is determined on an annual, ongoing basis and is not tracked against a baseline or base year. For methodologies and significant assumptions, please refer to section 9.2.5.4. Ecological thresholds or scientific findings were not considered when setting this target; stakeholders were not involved in target setting. The development of the metric is reported to the Management Board, among other things at Environment and Energy Team meetings, and serves to monitor waste separation targets. The separate collection quota was 86% in the reporting year, which is slightly below target.
No further quantitative targets have been set in the area of waste management.
The effectiveness of the policies and actions is tracked at the various sites and ensured by means of audits, inspections and walk-throughs.
9.2.5.3 Resource inflows
Resource inflows that are material for resource use and circular economy include materials (such as steel, chemical raw materials and water). They also encompass products, including components and assemblies in the vehicle wash equipment (such as drives and pumps), packaging and goods for logistics (such as canisters, cardboard boxes and palettes) and merchandise complementing the product portfolio (such as vacuum cleaners and mat beaters). WashTec does not directly source or process critical raw materials or rare earths.
The following materials were used in fiscal year 2025:
| Unit | 2025 | |
|---|---|---|
| Overall total weight of products and technical and biological materials used during the reporting period | t | 39,082 |
| Percentage of biological materials used to manufacture the Company's products and services that is sustainably sourced | % | 2 |
| Absolute weight of secondary reused or recycled components, secondary intermediary products and secondary materials used to manufacture the Company's products and services | t | 4,356 |
| Percentage weight of secondary reused or recycled components, secondary intermediary products and secondary materials used to manufacture the undertaking's products and services | % | 11 |
The above weights and percentages were determined using the following methodologies and assumptions:
Equipment
For equipment, weights were determined on the basis of an ERP analysis of all resource outflows in 2025, i.e. all equipment units and systems shipped to customers from headquarters in the reporting year (excluding products supplied to the entire American market).
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The gross weights recorded in the ERP system served as the basis for the data. For around 10% of supplied products, missing weight data was added on the basis of the assumption that they had similar average weight to all supplied products with available weight data.
The portion of the weight attributable to packaging was then deducted, as this is accounted for separately in the packaging category.
For the American market, the unit weights were determined using an independent calculation model based on the equipment sold there and the reference values defined by the Group.
No biological material content is shown for equipment as the amount of such content in the components used is extremely small and negligible relative to the total weight.
The recycling content of equipment was determined for the purchased metal materials (stainless steel, aluminum and steel) on the basis of the material-specific recycling content information provided by the suppliers.
Spare parts for equipment
For spare parts for equipment, the weight of parts shipped was obtained from the ERP system. For each new spare part entered in the system, the weight is either taken from the manufacturer's technical data sheet, or if no reliable manufacturer information is available, weighed when delivery is first taken of the goods. The weight determined in this way is then entered in the ERP system. Account was given to the fact that all spare parts leaving the Company first had to go in – that is, that the components used first enter the Company as a resource inflow before being shipped back out.
No biological content is shown for spare parts for equipment as the proportion of biological materials in the components used is extremely small and negligible relative to the total weight.
The recycled content of spare parts was not determined as a lack of reliable, standardized or supplier-provided data meant that there was no well-founded basis for doing so.
Chemical raw materials
For chemical raw materials, weights were mainly obtained from the internal ERP system. Chemical raw materials are usually purchased in bulk, in many cases by the ton. Reliable weight data on these materials is available from the manufacturer and is directly transferred and entered in the system. The biological material content of chemical products is disclosed and originates from verifiably sustainable sourcing documented by valid certification. To determine the content, the materials are tested for bio-based surfactants by trained in-house experts.
Water
For water, all water-related consumption at the production units was systematically recorded. Data collection is location-based using readings from existing public utility water meters. Water quantities purchased from public utilities comprise direct resource inflows as all water used in the Company is initially obtained from external supply systems. Any internal use of recirculated water (in equipment test runs, for example) has no affect on resource inflow accounting as it only constitutes a change of use and does not alter the quantities sourced externally.
No biological material content is shown for water, as water is not a biological material according to the relevant accounting standards.
The proportion of treated water in purchased mains water was determined on the basis of publicly available data on mains water origins from sources such as the German Federal Environment Agency.
Packaging
For packaging, all weights were obtained from the internal ERP system. All packaging used is recorded there with its weight, and this data could therefore be used directly in full. The data comes either directly from suppliers or is based on assumptions with reference to similar items. The only assumption here is that all packaging for which invoices were paid in 2025 was actually delivered.
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The biological material content of the packaging materials is determined with the aid of science-based data from recognized life cycle sources. For wood and cardboard packaging, a biological material content of 100% is assumed, as such packaging consists entirely of lignocellulosic wood fibers.
The percentage of recycled material was determined on the basis of materials recycling statistics published by the German Federal Environment Ministry. These were used to obtain recyclable percentages for each material as reference values, which were then applied to the packaging materials used at WashTec.
Regarding methodology, the quantities involved are documented and aggregated in an internal recording system. The data and information stored in that system come directly from invoices of waste disposal contractors, including means of verification (such as weighing slips) provided for the invoice data. In the internal recording system, the waste streams are linked to the relevant waste codes and collection points. The data is then aggregated to the waste types specified in the ESRS.
9.2.5.4 Resource outflows
The waste streams relevant to WashTec can generally be grouped into the following categories:
- Metal waste: residual metallic material such as iron and steel, mixed metals, aluminum, stainless steel from the development and manufacture of vehicle wash equipment and from the dismantling and disposal of end-of-life equipment
- Chemical waste: chemical residues and rinsing fluids from the development and production of washing chemicals
- Packaging waste: Waste in the form of paper, paperboard and cardboard, canisters, wood and a small volume of plastics
- Waste for recovery: other residual material not otherwise recyclable or not elsewhere specified
The following waste volumes were generated in the fiscal year 2025:
| Category | Total [t] | Non-hazardous [t] | Hazardous [t] |
|---|---|---|---|
| a) Total amount of waste generated | 4,392 | 4,110 | 282 |
| b) Total amount diverted from disposal | 3,457 | 3,436 | 21 |
| i. Preparation for reuse | 81 | 81 | 0 |
| ii. Recycling | 3,334 | 3,333 | 1 |
| iii. Other recovery operations | 42 | 22 | 20 |
| c) Total amount directed to disposal | 935 | 675 | 260 |
| i. Incineration | 852 | 592 | 260 |
| ii. Landfill | 83 | 83 | 0 |
| iii. Other disposal operations | 0 | 0 | 0 |
| d) Total amount of non-recycled waste | 1,058 | 778 | 280 |
| e) Percentage of non-recycled waste | 24% | 19% | 99% |
The total amount of hazardous waste in 2025 amounted to 282 t. No radioactive waste is produced in WashTec's operations. WashTec does not use any related materials or processes.
Waste volumes were determined on the basis of all quantities recorded at the production plants. The data comes from the plants' internal recording systems and represents all waste generated in 2025. The waste generated in the sales companies is negligible, as they are exclusively sales and service organizations with no production operations. They consequently generate only small quantities of typical office and service waste, but no production waste or large-volume waste fractions.
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9.3 Social information
9.3.1 Material impacts, risks and opportunities and their interaction with strategy and business model 134
9.3.2 Management of own workforce-related impacts, risks and opportunities 136
9.3.2.1 Policies related to own workforce 136
9.3.2.2 Processes for engaging with own workforce and workers' representatives about impacts 139
9.3.2.3 Processes to remediate negative impacts and channels for the own workforce to raise concerns 140
9.3.2.4 Action taken in relation to own workforce 141
9.3.3 Metrics and targets related to own workforce 143
9.3.3.1 Targets related to own workforce 143
9.3.3.2 Characteristics of WashTec employees 144
9.3.3.3 Collective bargaining coverage and social dialogue 145
9.3.3.4 Diversity metrics 146
9.3.3.5 Adequate wages 146
9.3.3.6 Health and safety metrics 147
9.3.3.7 Remuneration metrics 148
9.3.3.8 Incidents, complaints and severe human rights impacts 148
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9.3 Social information
With regard to social information, WashTec has identified the standards ESRS S1 and ESRS S2 as material in the course of the materiality assessment. WashTec makes use of the option of omitting the disclosures under ESRS S1-7, S1-15 and ESRS S2 (see also the information in section 9.1.1.2.6). The social information therefore only relates to the Company's own workforce.
According to ESRS standards, the term "own workforce" includes employees and non-employees. Non-employees are in turn subdivided into self-employed people and temporary employees.
In the consolidated sustainability statement, WashTec defines the term "employees" as people who are in an employment relationship with WashTec.
This also includes the management teams at WashTec AG's subsidiaries, and also apprentices. Non-employees such as temporary workers and self-employed people are not included under the term "employees."
9.3.1 Material impacts, risks and opportunities and their interaction with strategy and business model
WashTec has identified a total of eleven impacts, risks and opportunities as material in relation to its own workforce (prior year: eleven).
With regard to the Company's own workforce, a new positive material impact has been added with regard to adequate wages. The risk due to inadequate inclusion assessed as material in the prior year is no longer assessed as material in the reporting year. Material risks were reported in the prior year in relation to social dialogue, freedom of association and information, consultation and participation rights. Positive material impacts are reported in this regard in the reporting year due to a change in the analysis approach in the area of social information. Material risks were reported in the prior year in relation to gender equality, equal pay for work of equal value and diversity. As a result of a change in the analysis approach, negative potential impacts are reported in this regard in the reporting year.
The material impacts, risks and opportunities in relation to Company's own workforce and their location in the business model and value chain are shown in the table below.
| Sustainability matter | Material IRO | Description of the IRO and impacts on people and the environment | Location in the business model | Location in the value chain | Types of workers affected | Time horizons |
|---|---|---|---|---|---|---|
| Working conditions – adequate wages | Positive actual impacts of fair wages | Fair wages increase employee productivity and improve employee wellbeing | Personnel management worldwide | Own operations | Employees | Short-, medium- and long-term |
| Working conditions – social dialogue | Positive actual impacts of social dialogue | Adequate employee representation and engagement increases employee wellbeing and satisfaction | Personnel management worldwide | Own operations | Employees and temporary workers | Short-, medium- and long-term |
| Working conditions – freedom of association, the existence of works councils and the information, consultation and participation rights of workers | Positive actual impacts of freedom of association and of information, consultation and participation rights | WashTec guarantees its employees freedom of association and information, consultation and participation rights. This leads to better working conditions, enhanced job security and greater financial security for employees | Personnel management worldwide | Own operations | Employees and temporary workers | Short-, medium- and long-term |
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| Sustainability matter | Material IRO | Description of the IRO and impacts on people and the environment | Location in the business model | Location in the value chain | Types of workers affected | Time horizons |
|---|---|---|---|---|---|---|
| Working conditions – shortage of skilled workers | Risk due to shortage of skilled workers | The ongoing shortage of skilled workers, which also affects WashTec Group's business activities, results in higher employee recruitment and retention costs | Personnel management worldwide | Own operations | Employees and temporary workers | Long-term |
| Working conditions – employee satisfaction | Opportunity due to employee satisfaction | High employee satisfaction leads to the retention or recruitment of new talent | Personnel management worldwide | Own operations | Employees and temporary workers | Long-term |
| Working conditions – collective bargaining agreements | Positive actual impacts of collective bargaining | Collective bargaining safeguards employees' rights, promotes fair wages and prevents conflicts between employees and WashTec | Personnel management worldwide | Own operations | Employees | Short-, medium- and long-term |
| Working conditions – Work-life balance | Positive actual impacts on work-life balance | Provision such as special leave entitlements, sick pay and mobile working contribute to better work-life balance | Personnel management worldwide | Own operations | Employees | Short-, medium- and long-term |
| Working conditions – health and safety | Negative (potential) impacts of work-related accidents | WashTec exposes employees to hazards on construction sites and in production. This can lead to work-related accidents (individual incidents) | Occupational health and safety worldwide | Employees and temporary workers | Employees and temporary workers | Short-, medium- and long-term |
| Working conditions – health and safety | Risk due to work-related accidents | Reputational damage due work-related accidents | Occupational health and safety worldwide | Own operations | Employees and temporary workers | Short-, medium- and long-term |
| Equal treatment and equal opportunities – gender equality and equal pay for work of equal value | Negative (potential) impacts of unequal pay | Unequal pay for work of equal value can lead to financial loss and low employee satisfaction | Personnel management worldwide | Own operations | Employees | Short-, medium- and long-term |
| Equal treatment and equal opportunities – diversity | Negative (potential) impacts of inadequate consideration of diversity in the business organization | Failure to effectively manage diversity can lead to dissatisfaction among employees and lack of perceived appreciation | Personnel management worldwide | Own operations | Employees and temporary workers | Short-, medium- and long-term |
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WashTec considers the areas of health and safety, gender equality and diversity to be of key importance to its strategy and business.
In terms of health and safety, WashTec may have a potential negative impact on employees and temporary workers due to work-related accidents causing illness or physical injury. Work-related accidents also represent a risk of reputational damage, combined with a financial risk for WashTec. Many WashTec customers require the companies they work with to have an effective quality, health, safety and environment (QHSE) management system. WashTec therefore has a dedicated organizational unit for this purpose (HSE), which is responsible for an effective QHSE management system. Employees working for this organizational unit help to ensure workplace safety worldwide. Regular audits and certifications are used to monitor the effectiveness of workplace safety for all employees and temporary workers. From the Company's perspective, workplace safety is directly linked to the business model and serves as the basis for employment. The negative impacts and risks related to health and safety are therefore relevant to the business model in the short, medium and long term.
A lack of equal treatment can lead to low employee satisfaction and lack of perceived appreciation WashTec therefore enables all genders to assume leadership and project responsibilities equally.
Equal treatment is a high priority at WashTec and is highly relevant to the strategy. In particular, the Management Board of WashTec AG has set itself the goal of further promoting the percentage of women in leadership positions within the WashTec Group. To this end, it has set a voluntary target of 18% for the percentage of female managers, to be achieved by June 30, 2027. This also corresponds to the percentage of female employees. WashTec is committed to full equality, irrespective of gender. With this in view, WashTec has signed the Diversity Charter (Charta der Vielfalt).
No material financial effects of the material risks and opportunities on the financial position, financial performance and cash flows or on adjustments to carrying amounts are currently measurable.
WashTec's business model is subject to the conditions arising from the above-mentioned strategically and commercially relevant impacts, risks and opportunities. However, WashTec does not consider the impacts, risks and opportunities to be so material that they could have a radically negative impact on the WashTec business model. One reason is that WashTec has already taken action to avoid negative impacts and minimize risks. Secondly, WashTec has an effective risk management system that enables it to identify, assess and monitor its own opportunities and risks.
WashTec has developed an understanding of how people with particular characteristics, those working in particular contexts, or those undertaking particular activities may be at greater risk of harm. This applies, for example, to people in the areas of production and service, who may be more affected by negative impacts related to occupational health and safety. This was analyzed on the basis of risk assessments.
9.3.2 Management of own workforce-related impacts, risks and opportunities
9.3.2.1 Policies related to own workforce
WashTec pursues an approach of fostering a global organizational culture that is characterized by mutual respect and appreciation. The Company creates the conditions for all employees to recognize, share and live these values. They are enshrined in the WashTec Code of Conduct and the WashTec corporate philosophy. In this way, WashTec addresses at an overarching level the impacts, risks and opportunities related to Company employees and non-employees.
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WashTec additionally has the following policies in relation to specific working conditions and in relation to equal opportunities and equal rights:
9.3.2.1.1 Adequate wages
WashTec applies an integrated policy to ensure fair, secure and safe working conditions for all employees at its sites worldwide. A central element of this is adequate wages. WashTec ensures that all employees receive remuneration at least in line with legal requirements and industry standards. In addition, WashTec uses local market analyses to ensure fair and competitive salaries. The remuneration policy takes into account qualifications, experience, responsibility and the pay structure in each country.
9.3.2.1.2 Diversity
The importance of diversity is embedded in WashTec's corporate values and the WashTec Code of Conduct. WashTec is also a signatory to the Diversity Charter, an initiative to promote diversity in companies and institutions. Accordingly, WashTec is committed to a respectful working environment free of discrimination, in which people are respected regardless of age, ethnic origin, nationality, gender, gender identity, physical and mental abilities, religion, ideology, sexual orientation and social background. The WashTec Group standard on respectful conduct towards co-workers affirms the commitment to respect, mutual support, fair play, loyalty and honesty in dealings with one another.
9.3.2.1.3 Health and safety
WashTec expressly aims to continuously develop its own procedures, processes and strategies to ensure the highest standards of occupational safety at all WashTec sites and in the field at all times. To this end, WashTec has implemented a QHSE management system. The requirements under this system describe the tasks, organization and responsibilities relating to occupational health and safety and occupational medicine within the WashTec Group. These have the purpose of ensuring uniform safety standards for all employees and temporary workers and legal certainty for management. All employees have an active role in participating in and developing occupational health and safety management. Each subsidiary of the WashTec Group appoints officers who are responsible for implementing and maintaining occupational health and safety requirements at local level, taking into account national requirements. This systematic approach means that 100% of employees and temporary workers are covered by the QHSE management system on the basis of legal requirements and/or recognized standards or guidelines.
9.3.2.1.4 Human rights policy
For the WashTec Group, respect for human rights is a fundamental element of responsible corporate governance that is enshrined in the WashTec Code of Conduct. WashTec not only aims to ensure respect of human rights in all companies of the WashTec Group, but also requires it from WashTec business partners. WashTec regards respect for human rights as the basis of good working conditions and of equal opportunities and equal rights.
WashTec explains key points of its human rights policy in the WashTec Group Policy Statement on Social Responsibility and Human Rights adopted in fiscal year 2023. Among other things, this sets out how business conduct and the human rights strategy are aligned with various frameworks. These include the "UN Guiding Principles on Business and Human Rights: Implementing the United Nations 'Protect, Respect and Remedy' Framework", the ten principles of the UN Global Compact, the ILO Declaration on Fundamental Principles and Rights at Work and its Follow-up, and the ILO core labor standards. WashTec's approach is not only to comply with legal requirements, but also to make a positive contribution to the promotion of decent work and respectful working relationships.
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The above-mentioned internationally applicable standards and policies embed human rights within the WashTec Group and reflect a strong commitment to social responsibility. They are reviewed by Human Resources at head office and the human rights committee and adjusted if necessary. WashTec also engages with employee representatives in this process in order to identify any challenges at an early stage and make improvements.
The WashTec Supplier Code of Conduct governs the safety of workers, precarious employment relationships, human trafficking, forced labor and child labor. These provisions are in line with ILO standards.
Human rights due diligence obligations can only be successfully met if there is a mechanism for addressing grievances. An appropriate and effective grievance procedure thus is a fundamental part of WashTec's human rights strategy and is provided in the form of the WashTec whistleblower system.
In this connection, the Grievance and Reporting Procedure ensures proper investigation of any information received about human rights or environmental risks or violations. This procedure is standardized for the entire WashTec Group.
Group-wide policies adopted to manage material sustainability matters can be found in section 9.1.5. These affect all material impacts, risks and opportunities described in section 9.3.1.
The table below shows important policies and approaches for dealing with material impacts, risks and opportunities in relation to WashTec employees and non-employees.
The policies described in this section are regularly revised under the compliance management system.
| Policy | General objectives | IROs covered | Core content | Scope | Level accountable |
|---|---|---|---|---|---|
| WashTec Safety Rules | Top priority commitment to occupational safety at WashTec | Occupational health and safety | • Occupational safety | ||
| • Hazardous situations | |||||
| • Accident prevention | • Worldwide | ||||
| • Employees and temporary workers | • Management Board | ||||
| • HSE department | |||||
| Group standard on respectful conduct towards co-workers | Commitment to respect, mutual support, fair play, loyalty and honesty as key basic principles | All IROs relating to working conditions and equal opportunities | • Respectful interaction | ||
| • Individual appreciation | |||||
| • Fair play | |||||
| • Open interaction | |||||
| • Professionalism | |||||
| • Help and support | |||||
| • Misconduct | • Worldwide | ||||
| • Employees | • Management Board | ||||
| • Human Resources |
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Table continued from page 138
| Policy | General objectives | IROs covered | Core content | Scope | Level accountable |
|---|---|---|---|---|---|
| General workplace agreement on the establishment of a complaints body | Establishment of a complaints body | All IROs relating to working conditions and equal opportunities | Complaints body | ||
| Right of complaint | |||||
| Responsibilities of the complaints body under Section 13 on the German General Act on Equal Treatment | |||||
| Handling of complaints | |||||
| Duty to inform | German WashTec Group companies | ||||
| Employees and temporary workers | Management Board | ||||
| Human Resources | |||||
| Works Council |
9.3.2.2 Processes for engaging with own workforce and workers' representatives about impacts
Throughout the Group, WashTec sees itself as an attractive employer, in that employees feel included and represented. WashTec ensures this by means of active and transparent dialogue with WashTec employees and temporary workers.
To this end, WashTec supports a value-driven management approach, on the basis of which WashTec lives its corporate culture through respectful interaction on equal terms. Based on WashTec's open hierarchy policy, regular forums are held in which all employees can exchange ideas both formally and informally. Employee reviews promoting constructive dialogue are one organizationally established tool in this regard. Such reviews are conducted at least once a year.
Another factor of essential importance to the WashTec corporate culture is good communication. This is ensured in various ways, including through announcements, newsletters, information emails, surveys, regular meetings of specific stakeholder groups, and in-house publications. A further communication channel is the WashTec intranet, which is accessible to employees throughout the Group. Departments, committees and employees use it to share and obtain important information.
An additional aspect of workforce engagement is engagement with employee representatives. Regular company meetings are thus held at which both employee representatives (works council chairpersons) and employer representatives (members of the Management Board or company management teams) provide information and exchange views on current activities. All employees and temporary workers are generally invited to company meetings. If necessary, the employee representatives may also invite outside parties such as trade unions. In Germany, for example, company meetings are held twice a year with the participation of the trade union.
These are supplemented with regular coordination and dialogue meetings between employee and employer representatives. In Germany, the works council has monthly meetings with the Management Board and weekly meetings with the HR department. The outcomes of the meetings are recorded in minutes. Employee representatives provide the workforce with information in the form of newsletters and at company meetings. Employee representatives reflect employee needs and ensure that those needs inform decision making processes. Matters of relevance to the workforce are stipulated on, among other things, in country- or company-specific workplace agreements.
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At sites without employee representatives, local management keeps all employees and temporary workers informed about current developments. The frequency of such events is determined by each subsidiary, with one to four events a year as a rule. Dialogue with employees also ensures that their needs are seen and met. Information about employee engagement activities is requested and thus centralized in regular meetings between HR in Germany and the local units.
In this way, WashTec aims to ensure that it understands and addresses the needs and concerns of employees. This not only supports the creation of a respectful and positive working environment, but also helps foster employee satisfaction throughout the Group.
Responsibility for employee engagement lies with local HR departments or HR officers.
In Germany, employee representatives are part of the Environment and Energy Team and are thus involved in decisions regarding GHG emissions and the transition to environmentally friendly and climate-neutral activities.
The policy statement adopted by WashTec in relation to human rights is described in section 9.3.2.1.4.
9.3.2.3 Processes to remediate negative impacts and channels for the own workforce to raise concerns
One main channel through which WashTec employees and non-employees can raise concerns is the Group-wide whistleblower system. Further information (including on remedial measures and policies on the protection of individuals from reprisals) can be found in section 9.4.2.2.
In Germany, diversity ambassadors and diversity officers have also been established as a point of contact on diversity matters for WashTec employees. A complaints body has also been established for Germany pursuant to Section 13 of the German General Act on Equal Treatment.
Furthermore, WashTec has a separate Group-wide reporting channel for concerns regarding workplace safety. All employees and temporary workers are informed about the reporting channel in training.
As a matter of principle, WashTec values open communication. The points of contact for various employee matters are clearly communicated and documented, both on the intranet and in some cases also externally. These can be contacted in confidence in the event of concerns.
Information on the above channels can be found on the WashTec Group intranet and is therefore freely accessible for all employees and temporary workers worldwide. As part of the onboarding process in Germany, information is provided about the complaints body in accordance with Section 13 of Germany's General Act on Equal Treatment and about the workplace safety reporting channel. WashTec therefore expects that all employees and temporary workers will be aware of these channels.
Questions and concerns can be raised in regular meetings between corporate Human Resources and local managements throughout the Group.
WashTec's complaint channels are looked after by specialists at WashTec. As a matter of policy, cases are processed in accordance with the dual control principle. The parties involved may consult employee representatives as needed. WashTec therefore considers these complaint channels to be effective.
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9.3.2.4 Action taken in relation to own workforce
All action described in this section is ongoing. WashTec intends to continue it in the future. The actions described in the following paragraphs generally apply to all employees and temporary workers. Exceptions and additional provisions are stated under the relevant actions.
9.3.2.4.1 Adequate wages
WashTec takes various forms of action to implement the policies with regard to adequate wages. Regular salary reviews are carried out on the basis of annual market analyses and internal remuneration comparisons to ensure adequate pay. The majority of WashTec employees have access to transparent information on salary structures and development opportunities. WashTec also invests in skills development and career advancement.
9.3.2.4.2 Collective bargaining coverage and social dialogue
Collective agreements can help ensure both adequate working conditions and adequate pay. These enable the Company to be perceived as an attractive employer and to make a decisive contribution to corporate social responsibility, which in turn has a positive effect on attracting prospective candidates. This action applies only to employees who work in countries with collective bargaining coverage.
WashTec considers partnership-based working relationships with employee representatives, where present, as a complementary element that can contribute to employee satisfaction and thus to the Company's long-term success. Dialogue with employee representatives in a spirit of trust can facilitate active consideration of the perspectives and concerns of all employees and ensure that they are duly taken into account in the decision-making process.
9.3.2.4.3 Diversity
WashTec is committed to diversity at the local level and implements various actions to this end. Diversity is also promoted and communicated on the WashTec intranet and by employees and managers leading by example. In Germany, for example, there is a locally organized group of diversity ambassadors.
WashTec embraces diversity of individual talents and skills. Targeted external recruitment campaigns add to the range of skills in the workforce. Internal HR processes are geared towards promoting and developing this diversity throughout the entire employment cycle.
9.3.2.4.4 Social protection
Ensuring social protection is a further action point at WashTec. WashTec is committed to ensuring adherence to all country-specific legal requirements worldwide with regard to illness, unemployment, work-related accidents and invalidity, parental leave and retirement. Furthermore, WashTec provides a range of individual voluntary benefits in some cases, including extended sick pay for employees in Germany not covered by collective agreements and contributions to a private pension plan for employees in the United States.
9.3.2.4.5 Health and safety
WashTec ensures compliance with occupational health and safety principles through binding internal and external requirements. These include the definition of clear roles and responsibilities and regular training for all employees and temporary workers, including via the Company's digital learning platform. Based on monitoring of current accident statistics, health and safety measures are adjusted, for example through special training courses for at-risk groups of employees and temporary workers.
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External service providers are only used if they meet at least the same health and safety standards as WashTec.
Risk assessments and binding work instructions exist for all activities. These are communicated to employees and temporary workers and are available in digital form at all times. For high-risk tasks, specific requirements are developed and employees and temporary workers are trained accordingly. A structured accident management system has been set up with clear responsibilities and instructions to enable a rapid response in accordance with the situation in the event of an incident. For this purpose, an international accident hotline is available 24/7.
Regular workplace inspections are carried out to verify the effectiveness of occupational safety measures. The inspection criteria are department-specific and are documented in digital checklists. All employees and temporary workers are provided with suitable personal protective equipment, the use of which is mandatory. In addition, to ensure continuous improvement, employees and temporary workers are able to make suggestions for improving occupational safety at any time. A further key element in ensuring high occupational safety standards at WashTec is the conduct of annual internal and external occupational safety audits. Certification is obtained in accordance with the Safety Certificate Contractors (SCC) standard, which reflects the specific requirements of key accounts and is implemented at all European sales and service organizations.
In 2025, WashTec successfully obtained ISO 45001 certification for the AUWA production plant for the first time. This internationally recognized standard for occupational and safety management systems confirms that WashTec has systematically implemented measures to improve occupational health and safety. The certification confirms the presence of clear processes for risk assessment, the specification of responsibilities and continuous monitoring and improvement of occupational health and safety standards. The ISO 45001 certification underscores WashTec's commitment to the highest safety standards and the prevention of work-related risks.
9.3.2.4.6 Work-life balance
Mobile working and flexible working time models are available worldwide at WashTec, in accordance with operational requirements. WashTec also makes additional provision at local level to improve work-life balance. At German WashTec Group companies, this includes special leave, age-related working time models, support in the event of illness, and seminars on burnout prevention and stress management. These actions apply to all WashTec employees.
9.3.2.4.7 Gender equality
In order to ensure gender equality, gender-specific employee pay levels are reviewed in regular HR processes. Adequate wages are ensured from the outset in the recruitment process, among other things with reference to job descriptions and pay group classification guidelines. Local HR departments work together here with management and, where applicable, employee representatives.
9.3.2.4.8 Employee satisfaction and shortage of skilled workers
WashTec uses a multi-stage approach to address the shortage of skilled workers and employee retention. WashTec fosters an appreciative corporate culture that encourages and rewards performance. This is intended to lay the basis for long-term talent retention.
Moreover, WashTec ensures the transfer of knowledge and the organic development of its own specialists, particularly in technical professions, through tailored training and retraining programs as part of WashTec's human resources development management. WashTec also addresses the labor market situation by targeted positioning of the WashTec employer brand, among other channels through the international career platform, the WashTec careers website, and presentation at relevant fairs.
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Furthermore, WashTec invests in a vibrant corporate culture in the interests of employee satisfaction. This includes individual training and development programs and a variety of team events promoting interdisciplinary and intercultural exchange.
Additionally, in the first quarter of 2025, a global survey was conducted among employees to find out how they view WashTec. This made it possible to measure employee satisfaction and infer future scope for improvement. The findings were thus presented to the workforce in the second quarter of 2025 in order to derive specific measures. A central element of these processes consisted of workshops in all global departments and teams across the WashTec Group. Organizational development measures have been jointly identified and are being implemented on an ongoing basis. Actively involving the workforce ensures a high level of acceptance for the measures and the Company's strategic direction.
The effectiveness of the action described in this section is measured in various ways by local human resources departments and managers. Adequate wages and gender equality are analyzed through annual salary reviews. A further tool used to measure effectiveness is the conducting of employee surveys. Moreover, to actively elicit and assess feedback, managers and local HR departments and officers maintain regular dialogue with employees on equal terms. At the same time, the staff of HR departments attend continuous professional development and adapt HR processes to current requirements. Health and safety measures are monitored primarily through the monthly recording of the number of work-related accidents by the HSE department.
Through open communication and established feedback processes, WashTec aims to ensure that the actions described do not have a material negative impact on employees and temporary workers.
The actions listed in this section have not yet been integrated into the existing risk management process.
9.3.3 Metrics and targets related to own workforce
The Company tracks various metrics to monitor the implementation of its workforce-related policies. These include data on remuneration structure, such as the percentage of employees whose remuneration complies with national legal requirements and industry standards. Metrics are used to continuously review and improve measures with regard to fair and appropriate working conditions.
WashTec records employee numbers on a headcount basis.
Generally speaking, data for employee-related disclosures under this topical standard was collected quarterly and the mean calculated for 2025.
9.3.3.1 Targets related to own workforce
In the area of occupational health and safety, WashTec aims through preventive action to protect all employees and temporary workers from hazardous situations, accidents, work-related health hazards and occupational diseases. The overriding goal is to avoid causing any work-related accidents. Unfortunately, however, experience shows that work-related accidents are not wholly preventable. WashTec therefore aims to reduce the number of accidents at work across the Group each year to below the industry average. The benchmark for this purpose is the average for Germany published by Berufsgenossenschaft Holz und Metall, the employers' liability insurance association for the German woodworking and metalworking industry.
In addition, WashTec has set a target of at least a 95% training rate for occupational safety training and a 95% implementation rate for planned QHSE inspections.
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WashTec's diversity target is to increase the percentage of women in management positions to 18% by June 2027. This applies to individuals who are one to two levels in the reporting line below the Management Board of WashTec AG. WashTec also seeks to address the issue of the percentage of women in the workforce in other areas. WashTec uses a multi-stage approach to address the shortage of skilled workers and employee retention. An appreciative culture that encourages and rewards performance lays the foundation for long-term talent retention.
The targets described here have been set by the Management Board of WashTec AG. Stakeholders' interests and views were taken into account via in-house proxies when setting the targets. The Management Board of WashTec AG and the management teams of the subsidiaries maintain regular dialogue with employees and employee representatives to discuss scope for improvement in this regard.
No additional metrics have been established as Company-wide targets to measure progress in mitigating material negative impacts, advancing material positive impacts and managing significant risks and opportunities related to the WashTec workforce.
9.3.3.2 Characteristics of WashTec employees
WashTec had an average of 1,811 employees in fiscal year 2025 (prior year: 1,715). The average number of employees can also be found in the notes to the consolidated financial statements on page 192.
The breakdown by gender is as follows:
| Gender | Number of employees in fiscal year 2025 | Number of employees in fiscal year 2024 |
|---|---|---|
| Male | 1,489 | 1,413 |
| Female | 322 | 302 |
| Other | 0 | 0 |
| Not reported | 0 | 0 |
| Total number of employees | 1,811 | 1,715 |
The table below shows the breakdown of employees by country*.
| Country | Number of employees in fiscal year 2025 | Number of employees in fiscal year 2024 |
|---|---|---|
| Germany | 925 | 923 |
| USA and Canada | 260 | 246 |
| France | 174 | 165 |
| Czech Republic | 74 | 68 |
| United Kingdom | 57 | 51 |
| Spain | 50 | 36 |
| Poland | 46 | 6 |
| Netherlands | 45 | 46 |
| Denmark | 40 | 41 |
| Australia | 38 | 41 |
| Austria | 34 | 32 |
| Norway | 31 | 30 |
| Italy | 28 | 24 |
| New Zealand | 9 | 6 |
| Total | 1,811 | 1,715 |
- The table shows all countries, including those with a total number of employees below the 10% threshold in xtes S1 para. 50 (a). This is for better reconciliation with the figures in the text. The countries in bold meet the criteria in fiscal year 2025 of 50 or more employees representing at least 10% of the total number of employees. The countries not in bold are below this threshold in fiscal year 2025. They thus constitute a company-specific disclosure.
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The sites with the highest number of employees are those with attached production facilities in Germany, the Czech Republic and the USA. In France, the high number of employees is explained by the large number of service staff employed there.
The table below provides a further breakdown of individual characteristics of WashTec employees:
| Average number in fiscal year 2025 | Average number in fiscal year 2024 | |||||
|---|---|---|---|---|---|---|
| Female | Male | Total | Female | Male | Total | |
| Number of employees (head count) | 322 | 1,489 | 1,811 | 302 | 1,413 | 1,715 |
| Number of employees with permanent contracts (head count) | 308 | 1,418 | 1,726 | 277 | 1,310 | 1,587 |
| Number of employees with temporary contracts (head count) | 14 | 71 | 85 | 25 | 103 | 128 |
| Number of non-guaranteed hours employees* (head count) | 58 | 244 | 302 | 55 | 308 | 363 |
| Number of full-time employees (head count) | 256 | 1,472 | 1,728 | 242 | 1,368 | 1,610 |
| Number of part-time employees (head count) | 66 | 17 | 83 | 60 | 45 | 105 |
Here and in the tables that follow, WashTec distinguishes solely between the genders male and female. This is because, as can be seen from the above table, there are currently no employees listed in the "other" or "not reported" category.
Due to the high proportion of production and service in WashTec's business, the percentage of men in the workforce is 82% in fiscal year 2025 (prior year: 82%). The availability of quali
fied female and other skilled workers is limited in the industry. Nevertheless, WashTec explicitly recognizes the importance of diversity and is working on strategies to create a diverse working environment.
A total of 264 employees left the WashTec Group in fiscal year 2025 (prior year: 168). Throughout WashTec, the turnover rate was 15% in 2025 (prior year: 12%). This includes the number of employees who leave voluntarily or due to dismissal, retirement, or death in service.
Employee data was obtained centrally from the Group-wide HR management system.
9.3.3.3 Collective bargaining coverage and social dialogue
In 2025, 64% of employees across the Group were covered by collective agreements (prior year: 63%). The global percentage of employees covered by workers' representatives in the European Economic Area was 79% (prior year: 83%). The table below shows as country-specific breakdown*:
| Collective bargaining coverage | Social dialogue | ||
|---|---|---|---|
| Coverage rate 2025 | Percentage of employees covered by a collective agreement (EEA) | Percentage of employees covered by a collective agreement (non-EEA) | Percentage of employees covered by workers' representatives (EEA only) |
| 0–19% | Czech Republic, Poland | USA, Canada, UK, Australia, New Zealand | Czech Republic, Italy, Netherlands, Poland, Spain |
| 20–39% | - | - | - |
| 40–59% | Denmark, Norway | - | Denmark, Norway |
Table continued on page 146
-
Non-guaranteed hours employees are employees without a guarantee of a minimum number of working hours
-
The table shows all countries, including those with a total number of employees below the 10% threshold in ESRS S1 para. 60 (b). This is for better reconciliation with the figures in the text. The countries in bold meet the criteria in fiscal year 2025 of 50 or more employees representing at least 10% of the total number of employees. The countries not in bold are below this threshold in fiscal year 2025. They thus constitute a company-specific disclosure.
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Table continued from page 145
| Coverage rate 2025 | Percentage of employees covered by a collective agreement (EEA) | Percentage of employees covered by a collective agreement (non-EEA) | Percentage of employees covered by workers' representatives (EEA only) |
|---|---|---|---|
| 60–79% | – | ||
| 80–100% | Austria, Italy, Netherlands, Spain, Germany, France | – | Austria, France, Germany |
At WashTec sites not covered by collective agreements, the terms of local collective agreements – where appropriate – are used as a general benchmark in order to provide, to the maximum extent, comparable conditions for people who are not covered by collective agreements.
The determination as to whether employees are covered by collective agreements is made according to local requirements. The data for this is from the HR management system. The metrics are recorded as of the year-end.
The determination as to whether employees are covered by workers representatives is made according to local requirements. These include trade unions and members of such unions nominated or elected according to national law or practice. Worker representatives also include duly elected representatives freely elected by the workers of the organization. The data for this is from the HR management system. The metrics are recorded as of the year-end.
9.3.3.4 Diversity metrics
The gender distribution in number and percentage at top management level is shown in the following table.
| Numbers at top management level by gender, 2025 | Numbers at top management level by gender, 2024 | Gender distribution by percentage at top management level, 2025 | Gender distribution by percentage at top management level, 2024 | |
|---|---|---|---|---|
| Men at top management level | 62 | 64 | 8% | 83% |
| Women at top management level | 15 | 13 | 19% | 17% |
| Total | 77 | 77 | 100% | 100% |
The top management level at WashTec AG includes employees in managerial positions who are hierarchically one to three levels in the reporting line below the Management Board of WashTec AG.
The distribution of all employees by age group is shown below:
| Age group | Number of employees 2025 | Number of employees 2024 |
|---|---|---|
| Under 30 years old | 201 | 190 |
| 30–50 years old | 925 | 832 |
| Over 50 years old | 685 | 693 |
| Total | 1,811 | 1,715 |
9.3.3.5 Adequate wages
100% of WashTec employees are paid an adequate wage, in line with applicable benchmarks.
To determine this metric, adequate wages benchmarks were first obtained. For the European Economic Area (EEA), statutory or collectively agreed minimum wages were used. As there are statutory or collectively agreed minimum wages in the EEA countries in which
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WashTec operates, it was not necessary to use a benchmark from a neighboring country with a similar socio-economic status. Outside of the EEA area, statutory minimum wages were used. The minimum wage in the state of Colorado was used as the adequate wage benchmark for the USA. A comparison was then made at local level between the basic salary plus fixed additional benefits and the corresponding reference values.
The metric is recorded annually.
9.3.3.6 Health and safety metrics
WashTec's health and safety management system based on legal requirements and/or recognized standards or guidelines covers 100% of employees* and temporary workers. This management system does not cover self-employed people. In Europe, around 28% (prior year: 33%) of WashTec employees are covered by an SCC-certified or ISO 45001-certified health and safety management system.
Recordable work-related accidents (including commuting accidents) comprise reported work-related injuries and work-related ill health that result in more than one lost day not including the day of the accident. Only work-related accidents and commuting accidents that are reported by employees or non-employees can be included in the report. Employees or and temporary workers can report work-related accidents either using an app or by telephone. Reported incidents are classified according to the type of incident, the need for medical care and the number of days lost. The number of days lost is calculated on the basis of calendar days and includes the first and last full day of incapacity. Weekends, public holidays and approved leave days are not included in the calculation of days lost.
No fatalities as a result of work-related injuries or work-related ill health were recorded among WashTec employees or temporary workers in fiscal year 2025 (prior year: 0 fatalities). As in the prior year, there were likewise no fatalities among other workers working on WashTec sites.
The number of work-related accidents reportable to WashTec (including commuting accidents) was 37 (prior year: 28). Relative to the numbers of hours worked, this results
in an accident rate of 12.0 work-related accidents (including commuting accidents) per million hours worked (prior year: 9.9 work-related accidents (including commuting accidents) per million hours worked).
The number of reportable occupational accidents involving WashTec non-employees or temporary workers was 2 (prior year: 0). Relative to the numbers of hours worked, this results in an accident rate among temporary workers of 8.3 work-related accidents per million hours worked by temporary workers (prior year: 0 work-related accidents per million hours worked by temporary workers).
There were no cases of reportable work-related ill health among WashTec employees and temporary workers in fiscal year 2025 (prior year: no cases). This applies subject to legal restrictions on the collection of data.
Among WashTec employees, 542 days were lost in the reporting year to work-related injuries and fatalities from work-related accidents, work-related ill health and fatalities from ill health (prior year: 304 days).
A further metric tracked by WashTec is work-related accidents (excluding commuting accidents). A work-related accident (excluding commuting accidents) is defined as a work-related accident with at least one lost day (excluding the day of the accident). In fiscal year 2025, there were 26 (prior year: 18) work-related accidents (excluding commuting accidents). Relative to the numbers of hours worked, this results in an accident rate of 8.4 work-related accidents (excluding commuting accidents) per million hours worked (prior year: 6.4 work-related accidents (excluding commuting accidents) per million hours worked)**.
The training rate for occupational safety training in fiscal year 2025 was 95% (prior year: 96%)***. The training rate is generally recorded using software via a learning platform. Employees and temporary workers who do not have access to the learning platform are trained in person. Their attendance is recorded by signature.
- Unlike in section 9.3, the term "employees" in the context of health and safety also includes interns and work-study students.
** This entity-specific metric is also part of the Group management report, which is subject to audit with reasonable assurance.
*** The training rate for occupational safety training metric is a Company-specific metric.
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The implementation rate for QHSE inspections* carried out in fiscal year 2025 was 100%.
9.3.3.7 Remuneration metrics
In order to identify the Company's gender pay gap, the salary data was collected on WashTec employees in each country, broken down into fixed and variable salary components and by gender.
The gender pay gap within the WashTec Group is 2% (prior year: 5%). The gender pay gap is defined as the difference of average pay levels between female and male employees, expressed as percentage of the average pay level of male employees. The calculation formula is as follows: [(average hourly pay, before deductions, of male employees - average hourly pay, before deductions, of female employees) / average hourly pay, before deductions, of male employees] x 100.
The gross hourly pay level was recorded for each individual employee. The gross hourly pay level is calculated from the gross pay level of an employee per hour, where gross pay includes the components base salary, benefits in cash and benefits in kind. WashTec employees do not receive direct remuneration within the meaning of ESRS S1 AR 101 (b) iv. The gross hourly pay level per employee was adjusted for exchange rates but not for purchasing power differences between countries. The average gross hourly pay level was then calculated on the basis of the median for all male and female employees.
The annual total remuneration ratio of the highest paid individual (the Chief Executive Officer of WashTec AG) to the median annual total remuneration for all employees (excluding the highest-paid individual) is 14:1 (prior year: 10:1).
9.3.3.8 Incidents, complaints and severe human rights impacts
There was one reported case of discrimination, including harassment, in the reporting period. The case is not yet confirmed (prior year: one reported and confirmed case).
The definition of discrimination applied by WashTec is based on the Diversity Charter (Charta der Vielfalt). WashTec is thus committed to a respectful working environment free of discrimination, in which people are respected regardless of age, ethnic origin, nationality, gender, gender identity, physical and mental abilities, religion, ideology, sexual orientation and social background.
WashTec has incurred no fines, penalties or compensation for damages in this connection.
As a matter of policy, WashTec records incidents of discrimination, including harassment, reported via the whistleblower system (worldwide) or the complaints body (Germany). In addition, at the end of the year, all international subsidiaries were asked whether there were any incidents of discrimination or bribery.
A total of four reports were made via WashTec's reporting channels, which employees and non-employees of WashTec and third parties can use to raise concerns (prior year: two reports).
No severe human rights incidents (including severe incidents) were reported or identified. No fines, penalties or compensation for damages were paid as a result of the incidents covered above.
- The implementation rate for QHSE inspections metric is a Company-specific metric.
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9.4 Governance information
9.4.1 Governance in the WashTec Group 150
9.4.2 Impact, risk and opportunity management in relation to business conduct 150
9.4.2.1 Material impacts, risks and opportunities in relation to business conduct 150
9.4.2.2 Business conduct policies and corporate culture 151
9.4.2.3 Management of relationships with suppliers 154
9.4.2.4 Prevention and detection of compliance violations and data protection violations 155
9.4.3 Metrics and targets related to business conduct 156
9.4.3.1 Disclosures on material compliance and data protection violations 156
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9.4 Governance information
9.4.1 Governance in the WashTec Group
With regard to the disclosure requirements related to the role of the administrative, management and supervisory bodies, please refer to section 9.1.2.2.
9.4.2 Impact, risk and opportunity management in relation to business conduct
9.4.2.1 Material impacts, risks and opportunities in relation to business conduct
The process to identify and assess material impacts, risks and opportunities is described in general terms, together with the methodologies, assumptions and tools used, in section 9.1.4.7.
WashTec has identified a total of four (prior year: five) risks as material in relation to business conduct. Two risks reported in the prior year – “Risk due to incidents of corruption or bribery” and the risk that “Compliance violations can lead to poorer ESG ratings or reduced investor interest” – are now considered as a subset of the risk of compliance violations. As of this fiscal year, the risk of data protection and security breaches is assessed as material. The material risks in relation to business conduct in fiscal year 2025 and their location in the business model and value chain are shown in the table below.
| Sustainability matter | Material IRO | Description of the IRO and its impacts | Location in the business model | Location in the value chain | Time horizons |
|---|---|---|---|---|---|
| Compliance | Risk due to compliance violations | Compliance violations can lead to reputational damage with associated loss of revenue | Compliance management (worldwide) | Own operations | Short-, medium- and long-term |
| Management of relationships with suppliers | Risk due to supplier failures | Supplier failures can lead to higher production cost and have a negative impact on product availability on the market | Purchasing (worldwide) | Own operations, upstream and downstream value chain | Short-, medium- and long-term |
| Protection of whistleblowers | Risk due to lack of an effective whistleblower system | Loss of reputation associated with loss of revenue in the absence of adequate whistleblower protection | Compliance management (worldwide) | Own operations, upstream and downstream value chain | Short-, medium- and long-term |
| Compliance | Risk of data protection and security breaches | Financial loss due to data protection and data security breaches | Compliance management (worldwide) | Own operations | Short-, medium- and long-term |
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9.4.2.2 Business conduct policies and corporate culture
Long-term success requires strict compliance with all applicable laws and regulations and the maintenance and development of high ethical standards in WashTec's business activities and external interactions.
The WashTec Group's corporate culture is the basis of ethical conduct, integrity and long-term success. It is shaped by the Company's core values of integrity, responsibility, respect and innovation. These values are enshrined in the WashTec Code of Conduct, which guides the conduct of all employees. All policies covered here have a global impact with a focus on the Company's own operations, but have a spillover effect on the upstream and downstream value chain.
The compliance management system at WashTec combines the actions, structures and processes to ensure compliance with internal and external frameworks and laws. Compliance with internal frameworks also includes adherence to the WashTec Code of Conduct, which plays a major role in shaping WashTec's corporate culture.
The main areas covered by WashTec's compliance management system comprise compliance culture, compliance objectives, compliance risks, compliance program, compliance organization, compliance communication and compliance monitoring and improvement.
Its primary objectives are as follows:
- Compliance with legal requirements, defined corporate codes and codes of conduct, and internal Group requirements
-
Prevention or minimization of potential compensation claims, reputational damage, penalties, and liability on the part of WashTec employees or boards
-
Establishment of a framework for compliant conduct as guidance for WashTec Group employees
- Detection and sanctioning of compliance violations
WashTec's corporate culture is subject to continuous development and is an integral part of the Company's strategic orientation. Based on internal and external developments, codes of conduct are adapted in response to new challenges, societal expectations or regulatory requirements. Managers play a central role in the further development of WashTec's corporate culture, leading by example and living the compliance culture through their conduct and decisions. This also applies in particular to the Management Board and Supervisory Board, who set the "tone from the top."
WashTec's corporate culture is cultivated on the basis of targeted action in support of people's day-to-day work and interactions within the Company. A compliance program has been implemented for this purpose, with measures to ensure that employees conduct themselves in accordance with the law. These notably include WashTec's policy management and training policy.
Policy management covers all material subject areas at various levels (Group standards, Group policies and local policies), including a corporate approval policy and signature policy. These are available on the intranet for all employees. Both the WashTec Code of Conduct and the WashTec Group Policy Statement on Social Responsibility and Human Rights are additionally available to all stakeholders on the corporate website.
WashTec's training policy ensures that all employees receive regular training on business conduct, which is a central element of the compliance management system. The scope of the business conduct training is largely based on the WashTec Code of Conduct. The training covers all relevant ethical and legal standards, including compliance with the law,
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preventing corruption, the protection of Company secrets and respectful interaction with employees and business partners.
Training on the WashTec Code of Conduct consists of a comprehensive basic training course provided to employees in an e-learning format in the national language of each WashTec company. This has to be completed once annually and by new employees when joining. In some cases, managers and selected employees are also provided with in-person training. Specific workshops on topical issues or legislative changes are additionally offered as the need arises. Internal feedback mechanisms keep the training courses practical and relevant.
Other measures include management development, which provides scope for shaping the corporate culture at all levels.
The corporate culture is evaluated on a regular basis, in particular through open dialogue between the Supervisory Board, the Management Board and managers, as well as with external stakeholders. Employee surveys are also conducted on certain aspects. Furthermore, the corporate culture was reinforced during the reporting year with specific measures aimed at enhancing compliance awareness. This included, for the first time, a survey of managers focusing on their perceptions of and adherence to compliance principles. The survey findings provide important insights into integrity and compliance within the Company and therefore represent a key element of the corporate culture as a whole.
WashTec has established clear mechanisms for identifying, reporting and investigating concerns about unlawful behavior or behavior in contravention of the WashTec Code of Conduct and internal rules. The mechanisms are designed to ensure that all employees and external stakeholders are able to report violations of Company policies or the law. The existing anti-corruption and anti-bribery policy is embedded in the WashTec Code of Conduct and adapted to WashTec's needs, but is not fully in line with the United Nations Convention against Corruption. A review of the policies is planned for fiscal year 2026 to
determine whether there is any additional need for adjustment. WashTec has had a whistleblower system in place since 2016. This has been updated in recent years and meets the requirements of Directive (EU) 2019/1937.
The Grievance and Reporting Procedure published on the website sets out how complaints and reports are received in a structured manner and what steps are necessary for the identification and investigation of incidents (including incidents of corruption and bribery) in order for these to be investigated promptly, independently and objectively. In accordance with the Grievance and Reporting Procedure, WashTec does not tolerate reprisals against whistleblowers. WashTec will protect anyone who speaks up in good faith, even if a concern turns out to be unfounded.
The whistleblower system, which is accessible to anyone through an online platform, allows violations to be reported anonymously and confidentially without fear of retaliation.
The Corporate Internal Audit and the Legal and Compliance departments are responsible as the Central Contact Point for establishing, operating and regularly reviewing the Grievance and Reporting Procedure. The employees of the Central Contact Point are trained specialists who report directly – and subject to the maintenance of confidentiality – to the Management Board of WashTec AG, the parent company of the WashTec Group. They are not subject to any substantive instructions in the performance of their duties in connection with the Grievance and Reporting Procedure. The employees of the Central Contact Point undergo regular further training in this regard.
The results of investigations and corrective actions taken are also reported to the appropriate managers and, if necessary, to the competent supervisory authorities.
All WashTec employees are also provided information about the whistleblower system in the training on the WashTec Code of Conduct. Moreover, further information, together with contact details for the responsible parties, is provided on the website and on the intranet.
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IT, Human Resources, Purchasing and Sales were identified as functions-at-risk – the functions within WashTec that in light of their areas of responsibility are most at risk with regard to compliance (including corruption and bribery).
The Group-wide policies adopted by WashTec to manage material sustainability matters can be found in section 9.1.5. These affect all material business conduct-related impacts, risks and opportunities.
The table below shows important policies for dealing with material impacts, risks and opportunities in relation to business conduct at WashTec.
| Policy | General objectives | IROs covered | Core content | Scope | Level accountable |
|---|---|---|---|---|---|
| Data Protection@WashTec Group standard – data protection principles | Sets out data protection principles for all employees to ensure data protection | Data protection and data security-related IROs | ■ Right to informational self-determination | ||
| ■ Transparency | |||||
| ■ Purpose-specific | |||||
| ■ Data minimization | |||||
| ■ Data security | Worldwide | ■ Management Board | |||
| ■ Legal and Compliance Department | |||||
| IT Security@WashTec Group standard | Sets out requirements and principles for all employees to ensure data security | Data protection and data security-related IROs | ■ Access control and authentication | ||
| ■ Data backup and encryption | |||||
| ■ Network security and protective measures | |||||
| ■ Training and awareness-raising | |||||
| ■ Incident management and security policies | Worldwide | ■ Management Board | |||
| ■ Global IT department | |||||
| Approval policy | Stipulates on all necessary approvals in connection with all legal transactions. | IROs related to compliance, corruption and bribery | ■ Corporate approval matrix | ||
| ■ Use of the approval form | Worldwide | ■ Management Board | |||
| ■ Legal and Compliance Department |
Fortsetzung der Tabelle auf Seite 154
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Fortsetzung der Tabelle von Seite 153
| Policy | General objectives | IROs covered | Core content | Scope | Level accountable |
|---|---|---|---|---|---|
| Signature policy | Ensuring application of the dual control principle | IROs related to compliance, corruption and bribery | ■ Two signature rule | ||
| ■ Signing by substitute party | |||||
| ■ Original signatures and digitalized equivalent | ■ Worldwide | ■ Management Board | |||
| ■ Legal and Compliance Department | |||||
| WashTec Supplier Code of Conduct | Specification of basic requirements for the principles of business conduct for business partners | IROs related to compliance, corruption and bribery | ■ Requirements for suppliers in terms of ethical business conduct (e.g. compliance with the law and prohibition of corruption), environmental responsibility and social responsibility | ||
| ■ Information obligations, rights of control and remedial measures | |||||
| ■ Grievance mechanism | ■ Upstream value chain | ■ Management Board |
9.4.2.3 Management of relationships with suppliers
WashTec attaches great importance to responsible and partnership-based working relationships with its suppliers.
When selecting new suppliers and working with strategic partners, an integrated approach is taken that considers not only economic and qualitative aspects, but also social and environmental criteria. This includes assessing working conditions, compliance with environmental standards and the reduction of GHG emissions.
WashTec values strong partnerships. WashTec's supplier strategy is based on ongoing working relationships in order to minimize potential risks in the supply chain through joint action. To this end, WashTec analyzes its business relationships in supplier audits with regard to human rights, environmental impact and ethical business practices. The WashTec
Supplier Code of Conduct sets out requirements for suppliers (direct suppliers and service providers) for legally compliant and sustainable business conduct.
Suppliers are required to comply, and ensure compliance, with the requirements of the WashTec Supplier Code of Conduct in their own business activities. Furthermore, WashTec reserves the right to conduct audits to verify compliance with the WashTec Supplier Code of Conduct.
WashTec has defined transparent payment processes and clear payment times to avoid delays in payment, especially for small and medium-sized enterprises (SMEs). Suppliers also have close contact to Purchasing and Finance in order to ensure rapid resolution in the event of discrepancies.
WashTec
Management Report // Consolidated sustainability statement
Financial Statements
Further Information
9.4.2.4 Prevention and detection of compliance violations and data protection violations
As an integral component of WashTec's governance strategy, the compliance management system serves to prevent, detect, investigate and sanction compliance violations (including cases of corruption and bribery) and data protection violations. The aim is to minimize legal risks and safeguard the integrity of the Company.
The basis for compliance with legal and regulatory requirements is the consistent integration of compliance and data protection into WashTec's corporate culture. This begins with the clear communication of corporate values and policies, and in particular the WashTec Code of Conduct and the Group data protection and IT security standards, which are mandatory for all employees. These are available on the intranet for all employees (policy management) and are communicated in e-learning units with tests. In addition, internal control mechanisms have been established to identify and minimize risks at an early stage.
Key preventive measures include regular, mandatory training for all employees and especially managers, as well as employees in sensitive functions such as IT, HR, Purchasing and Sales. The training provides practical knowledge of compliance principles, data protection requirements (such as the GDPR), typical risk scenarios and the handling of personal data. The content is continuously updated in line with legal and regulatory changes. The training is provided in various forms, including e-learning units and in-person training.
In the reporting year, 93% of employees in functions-at-risk took the Compliance@ WashTec training. Training on compliance (including anti-corruption and anti-bribery) for the Management Board and Supervisory Board is provided by the Head of Legal and Compliance, with one to three hours per year dedicated to communicating the content of the WashTec Code of Conduct.
WashTec has implemented comprehensive technical and organizational measures to prevent data breaches, including access control, data encryption, logging and monitoring. Data minimization and implementation of deletion policies also play an important role. These measures are reviewed for effectiveness in regular audits. Adjustments are made in line with new (regulatory) requirements as the need arises.
WashTec pursues a clear zero-tolerance policy towards compliance violations. Every confirmed violation is consistently investigated and sanctioned - from labor law-related steps to reporting to the competent authorities. This policy is regularly communicated and is included in all relevant guidelines and training courses.
An external data protection officer is appointed for the WashTec Group companies in Germany. The external data protection officer monitors compliance with data protection regulations, is the central point of contact for internal and external data protection matters, and works closely with the Legal and Compliance Department, which coordinates international data protection for the entire Group. The foreign subsidiaries have data protection contact persons who are responsible locally for compliance with data protection regulations and report to the Legal and Compliance Department on data protection issues.
To detect compliance violations, WashTec uses internal and external audits and a whistleblower system, which employees, business partners and third parties can use to report violations. Reported violations are investigated in accordance with the Grievance and Reporting Procedure. The independent Central Contact Point (see section 9.4.2.2) conducts the investigations and cooperates with external bodies or supervisory authorities as required. Subject to confidentiality, it reports directly to the Management Board, and as part of regular reporting, to the Supervisory Board.
Lessons learned from incidents are used for the continuous improvement of processes and preventive measures.
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9.4.3 Metrics and targets related to business conduct
9.4.3.1 Disclosures on material compliance and data protection violations
There were no convictions in the WashTec Group during the reporting period for violation of compliance requirements (including cases of corruption or bribery) or of data protection requirements. Nor were there any convictions for violation of compliance requirements or of data protection requirements in the value chain where WashTec or its employees were involved. No fines or official penalties were imposed.
In total, there were zero confirmed cases of corruption and bribery in fiscal year 2025.
WashTec pursues a zero tolerance policy with regard to compliance violations and aims to ensure on an ongoing basis that no such violations are committed.
Corruption and data protection incidents are regularly recorded at WashTec as part of legal and compliance case reporting throughout the year. This reporting brings together in one place cases from the whistleblower system together with cases handled by the Legal and Compliance Department that are reported to it by subsidiaries, Human Resources or internal or external parties. The employees who handle legal and compliance case reporting are trained in relation to compliance and data protection as part of the above training and therefore have the appropriate knowledge to process the reporting.
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9.5 Annex
Table of ESRS disclosure requirements and datapoints that derive from other EU legislation 158
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Table of ESRS disclosure requirements and datapoints that derive from other EU legislation
| Disclosure requirement | Reference to EU legal act (datapoint) | Datapoint materiality | Section title | Page | ||
|---|---|---|---|---|---|---|
| ESRS 2 – General disclosures | ||||||
| BP-1 | General basis for preparation of the sustainability statement | 9.1.1.1 | General basis for preparation of the consolidated sustainability statement | 79 | ||
| BP-2 | Disclosures in relation to specific circumstances | 9.1.1.2 | Disclosures in relation to specific circumstances | 79 | ||
| GOV-1 | Role of the administrative, management and supervisory bodies | 1,3 [2nd, e] | Material | 9.1.2.1 | Role of Management Board and Supervisory Board | 81 |
| GOV-2 | Information provided to and sustainability matters addressed by the undertaking's administrative, management and supervisory bodies | 9.1.2.3 | Information provided to and sustainability matters addressed by the Management Board and Supervisory Board | 86 | ||
| GOV-3 | Integration of sustainability-related performance in incentive schemes | 9.1.2.4 | Integration of sustainability-related performance in incentive schemes | 86 | ||
| GOV-4 | Statement on due diligence | 1 [30] | Material | 9.1.2.5 | Statement on due diligence | 87 |
| GOV-5 | Risk management and internal controls over sustainability reporting | 9.1.2.6 | Risk management and internal controls over sustainability reporting | 88 | ||
| SBM-1 | Strategy, business model and value chain | 1,2,3 [42rd i]1,5 [42rd ii, iii]3 [40 d iv] | Non-material | 9.1.3.1 | Strategy, business model and value chain | 88 |
| SBM-2 | Interests and views of stakeholders | 9.1.3.2 | Interests and views of stakeholders | 93 | ||
| SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 9.1.3.3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 95 | ||
| IRO-1 | Description of the process to identify and assess material impacts, risks and opportunities | 9.1.4.1 bis9.1.4.7 | Description of the process to identify and assess material impacts, risks and opportunities | 98 | ||
| IRO-2 | Disclosure requirements in ESRS covered by the undertaking's sustainability statement | 9.1.4.9 | Disclosure requirements in ESRS covered by the undertaking's sustainability statement | 102 | ||
| ESRS E-1 Climate change | ||||||
| E1-1 | Transition plan for climate change mitigation | 4 [14]2,3 [16g] | Material [14]Non-material [16g] | 9.2.2.2.1 | Transition plan for climate change mitigation | 108 |
| SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 9.2.2.2.2 | Material impacts, risks and opportunities and their interaction with strategy and business model | 110 | ||
| E1-2 | Policies related to climate change mitigation and adaptation | 9.2.2.3.1 | Policies related to climate change mitigation and adaptation | 112 | ||
| E1-3 | Actions and resources in relation to climate policies | 9.2.2.3.2 | Actions and resources in relation to climate policies | 113 | ||
| E1-4 | Targets related to climate change mitigation and adaptation | 1,2,3 [34] | Material | 9.2.2.4.1 | Targets related to climate change mitigation and adaptation | 114 |
| E1-5 | Energy consumption and mix | 1 [37, 38, 40-43] | Material | 9.2.2.4.2 | Energy consumption and mix | 116 |
| E1-6 | Gross Scopes 1, 2, 3 and Total GHG emissions | 1,2,3 [44, 53-55] | Material | 9.2.2.4.3 | Gross Scopes 1, 2 and 3 and Total GHG emissions | 117 |
| E1-7 | GHG removals and GHG mitigation projects financed through carbon credits | 4 [56] | Non-material | - | ||
| E1-9 | Anticipated financial effects from material physical and transition risks and potential climate-related opportunities | 3 [66], 2 [66a, c], 2 [67c], 3 [69] | Phase-in | - | ||
| ESRS E-2 Pollution | ||||||
| SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 9.2.3.1.1 | Material impacts, risks and opportunities in relation to pollution | 123 |
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| Disclosure requirement | Reference to EU legal act (datapoint) | Datapoint materiality | Section title | Page | ||
|---|---|---|---|---|---|---|
| E2-1 | Policies related to pollution | 9.2.3.1.2 | Policies related to pollution | 123 | ||
| E2-2 | Actions and resources related to pollution | 9.2.3.1.3 | Actions and resources in relation to pollution | 123 | ||
| E2-3 | Targets related to pollution | 9.2.3.2 | Metrics and targets related to pollution | 124 | ||
| E2-4 | Pollution of air, water and soil | 1 [28] | Non-material | - | ||
| ESR5 E-3 Water and marine resources | ||||||
| SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 9.2.4.1.1 | Material impacts, risks and opportunities in relation to water resources | 124 | ||
| E3-1 | Policies related to water and marine resources | 1 [9, 13, 14] | Material [9, 13] Non-material [14] | 9.2.4.1.2 | Policies related to water resources | 125 |
| E3-2 | Actions and resources related to water and marine resources policies | 9.2.4.1.3 | Actions and resources in relation to water resources | 126 | ||
| E3-3 | Targets related to water and marine resources | 9.2.4.2 | Metrics and targets related to water resources | 126 | ||
| E3-4 | Water consumption | 1 [28c, 29] | Non-material | - | ||
| ESR5 E-4 Biodiversity and ecosystems | ||||||
| ESR5 2 IRO-1 | Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and opportunities | 1 [16a i, b, c] | Material | 9.1.4.5 | Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and opportunities | 101 |
| E4-2 | Policies related to biodiversity and ecosystems | 1 [24b, c, d] | Non-material | - | ||
| ESR5 E-5 Resource use and circular economy | ||||||
| SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 9.2.5.1.1 | Material impacts, risks and opportunities and their interaction with strategy and business model | 127 | ||
| E5-1 | Policies related to resource use and circular economy | 9.2.5.1.2 | Policies related to resource use and circular economy | 127 | ||
| E5-2 | Actions and resources in relation to resource use and circular economy | 9.2.5.1.3 | Actions and resources in relation to resource use and circular economy | 128 | ||
| E5-3 | Targets related to resource use and circular economy | 9.2.5.2 | Metrics and targets related to resource use and circular economy | 129 | ||
| E5-4 | Resource inflows | 9.2.5.3 | Resource inflows | 130 | ||
| E5-5 | Resource outflows | 1 [37d, 39] | Material [37d] Non-material [39] | 9.2.5.4 | Resource outflows | 132 |
| ESR5 S-1 Own workforce | ||||||
| SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 1 [1af, g] | Non-material | 9.3.1 | Material impacts, risks and opportunities and their interaction with strategy and business model | 134 |
| S1-1 | Policies related to own workforce | 1 [20] 3 [21, 22, 23] | Material | 9.3.2.1 | Policies related to own workforce | 136 |
| S1-2 | Processes for engaging with own workforce and workers' representatives about impacts | 9.3.2.2 | Processes for engaging with own workforce and workers' representatives about impacts | 139 | ||
| S1-3 | Processes to remediate negative impacts and channels for the own workforce to raise concerns | 1 [32c] | Material | 9.3.2.3 | Processes to remediate negative impacts and channels for the own workforce to raise concerns | 140 |
| S1-4 | Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions | 9.3.2.4 | Action taken in relation to own workforce | 141 | ||
| S1-5 | Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 9.3.3.1 | Targets related to own workforce | 143 |
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| Disclosure requirement | Reference to EU legal act (datapoint) | Datapoint materiality | Section title | Page | ||
|---|---|---|---|---|---|---|
| 51-6 | Characteristics of the undertaking's employees | 9.3.3.2 | Characteristics of WashTec employees | 144 | ||
| 51-8 | Collective bargaining coverage and social dialogue | 9.3.3.3 | Collective bargaining coverage and social dialogue | 145 | ||
| 51-9 | Diversity metrics | 9.3.3.4 | Diversity metrics | 146 | ||
| 51-10 | Adequate wage | 9.3.3.5 | Adequate wage | 146 | ||
| 51-14 | Health and safety metrics | 1, 2 [88 b, c] 1 [88c], | Material | 9.3.3.6 | Health and safety metrics | 147 |
| 51-16 | Remuneration metrics (pay gap and total remuneration) | 1, 3 [97d], 1 [97b] | Material | 9.3.3.7 | Remuneration metrics | 148 |
| 51-17 | Incidents, complaints and severe human rights impacts | 1 [103a] 1, 3 [104a] | Material | 9.3.3.8 | Incidents, complaints and severe human rights impacts | 148 |
| ESRS S-2 Workers in the value chain | ||||||
| 58M-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 1 [11b] | Non-material | 9.1.3.3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 95 |
| 52-1 | Policies related to value chain workers | 1 [17, 18, 19] | Phase-in | |||
| 52-4 | Taking action on material impacts on value chain workers, and approaches to managing material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions | 1 [36] | Non-material | |||
| ESRS S-3 Affected communities | ||||||
| 53-1 | Policies related to affected communities | 1 [16], 1, 3 [17] | Non-material | |||
| 53-4 | Taking action on material impacts on affected communities, and approaches to managing material risks and pursuing material opportunities related to affected communities, and effectiveness of those actions | 1 [36] | Non-material | |||
| ESRS S-4 Consumers and end-users | ||||||
| 54-1 | Policies related to consumers and end-users | 1 [16], 1, 3 [17] | Non-material | |||
| 54-4 | Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions | 1 [36] | Non-material | |||
| ESRS G-1 Business conduct | ||||||
| 58M-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 9.4.2.1 | Material impacts, risks and opportunities in relation to business conduct | 150 | ||
| G1-1 | Business conduct policies and corporate culture | 1 [10b, d] | Material | 9.4.2.2 | Business conduct policies and corporate culture | 151 |
| G1-2 | Management of relationships with suppliers | 9.4.2.3 | Management of relationships with suppliers | 154 | ||
| G1-3 | Prevention and detection of corruption and bribery | 9.4.2.4 | Prevention and detection of compliance violations and data protection violations | 155 | ||
| G1-4 | Incidents of corruption or bribery | 1, 3 [24a, b] | Material | 9.4.3.1 | Disclosures on material compliance and data protection violations | 156 |
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Augsburg, March 20, 2026
Michael Drolshagen
CEO/CTO/Chairman of the
Management Board
Sebastian Kutz
CSO/Member of the
Management Board
Andreas Pabst
CFO/Member of the
Management Board
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Consolidated Financial Statements of WashTec AG
Consolidated Income Statement ... 163
Consolidated Statement of Comprehensive Income ... 164
Consolidated Balance Sheet ... 165
Consolidated Statement of Changes in Equity ... 167
Consolidated Cash Flow Statement ... 168
Notes to the Consolidated Financial Statements ... 169
Responsibility statement ... 222
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Consolidated Income Statement
| in €k | Note | Jan 1 to Dec 31, 2025 | Jan 1 to Dec 31, 2024 |
|---|---|---|---|
| Revenue | 7 | 498,618 | 476,889 |
| Cost of sales | 8 | -342,424 | -329,222 |
| Gross profit | 156,193 | 147,667 | |
| Research and development expenses | 8 | -14,246 | -16,511 |
| Selling expenses | 8 | -68,496 | -63,317 |
| Administrative expenses | 8 | -24,266 | -21,151 |
| Other income | 9 | 4,513 | 3,560 |
| Other expenses | 9 | -4,782 | -4,745 |
| Earnings before interest and taxes (EBIT) | 48,915 | 45,503 | |
| Financial income | 332 | 466 | |
| Financial expenses | -2,795 | -3,620 | |
| Financial result | 10 | -2,463 | -3,155 |
| Earnings before taxes (EBT) | 46,452 | 42,348 | |
| Income taxes | 11 | -15,765 | -11,322 |
| Net income | 30,687 | 31,026 | |
| Weighted average number of shares in units | 13,379,578 | 13,382,324 | |
| Earnings per share (basic = diluted) in € | 12 | 2.29 | 2.32 |
Further information on the Consolidated Income Statement is provided in the Notes to the Consolidated Financial Statements. The Notes to the Consolidated Financial Statements are an integral part of the consolidated financial statements.
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Financial Statements // Consolidated Statement of Comprehensive Income
Further Information
Consolidated Statement of Comprehensive Income
| in €k | Jan 1 to Dec 31, 2025 | Jan 1 to Dec 31, 2024 |
|---|---|---|
| Net income | 30,687 | 31,026 |
| Actuarial gains/losses from defined benefit obligations and similar obligations | 480 | -668 |
| Deferred taxes | -146 | 212 |
| Items that will not be reclassified to profit or loss | 334 | -456 |
| Changes in fair value of financial instruments used for hedging purposes | -35 | 13 |
| Adjustment item for currency translation of foreign subsidiaries and currency changes | -3,969 | 1,853 |
| Exchange differences on net investments in subsidiaries | 0 | -193 |
| Deferred taxes | 11 | -4 |
| Items that may be subsequently reclassified to profit or loss | -3,993 | 1,669 |
| Other comprehensive income (OCI) | -3,659 | 1,213 |
| Total comprehensive income | 27,029 | 32,239 |
Further information on the Consolidated Statement of Comprehensive Income is provided in the Notes to the Consolidated Financial Statements. The Notes to the Consolidated Financial Statements are an integral part of the consolidated financial statements.
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Consolidated Balance Sheet Assets
| in ek | Note | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|---|
| Property, plant and equipment | 14 | 33,185 | 33,998 |
| Goodwill | 14 | 43,800 | 43,884 |
| Intangible assets | 14 | 10,964 | 10,366 |
| Right-of-use assets | 15 | 21,818 | 20,806 |
| Non-current trade receivables | 19 | 273 | 236 |
| Other non-current receivables | 19 | 2,106 | 2,046 |
| Other non-current financial assets | 20 | 389 | 416 |
| Other non-current non-financial assets | 20 | 602 | 576 |
| Deferred tax assets | 16 | 5,213 | 4,604 |
| Non-current assets | 118,350 | 116,931 | |
| Inventories | 17 | 59,296 | 55,065 |
| Current trade receivables | 19 | 75,879 | 76,327 |
| Other current receivables | 19 | 1,369 | 1,816 |
| Tax receivables | 18 | 9,916 | 5,800 |
| Other current financial assets | 20 | 748 | 1,385 |
| Other current non-financial assets | 20 | 3,483 | 2,844 |
| Cash and cash equivalents | 21 | 17,544 | 19,512 |
| Current assets | 168,236 | 162,749 | |
| Assets | 286,586 | 279,679 |
Further information on the Consolidated Balance Sheet is provided in the Notes to the Consolidated Financial Statements. The Notes to the Consolidated Financial Statements are an integral part of the consolidated financial statements.
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Consolidated Balance Sheet Equity and Liabilities
| in €k | Note | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|---|
| Subscribed capital | 22 | 40,000 | 40,000 |
| Capital reserves | 23 | 36,463 | 36,463 |
| Treasury shares | 24 | -14,685 | -13,177 |
| Other reserves and currency translation effects | 25 | -6,277 | -2,676 |
| Profit carried forward | -4,221 | -3,129 | |
| Net income | 30,687 | 31,026 | |
| Equity | 81,968 | 88,507 | |
| Non-current interest-bearing loans | 28 | 1,809 | 3,489 |
| Non-current lease liabilities | 29 | 12,621 | 12,773 |
| Provisions for pensions | 26 | 7,490 | 8,564 |
| Other non-current provisions | 27 | 1,649 | 2,024 |
| Other non-current financial liabilities | 30 | 41 | 225 |
| Other non-current non-financial liabilities | 30 | 1,551 | 503 |
| Other non-current contract liabilities | 31 | 1,061 | 1,134 |
| Deferred tax liabilities | 16 | 3,013 | 2,249 |
| Non-current liabilities | 29,234 | 30,961 | |
| Current interest-bearing loans | 28 | 45,276 | 40,442 |
| Current lease liabilities | 29 | 10,011 | 9,061 |
| Trade payables | 24,699 | 19,577 | |
| Income tax liabilities | 9,471 | 4,792 | |
| Other current financial liabilities | 30 | 20,602 | 20,021 |
| Other current non-financial liabilities | 30 | 25,851 | 25,449 |
| Other current provisions | 27 | 8,892 | 10,474 |
| Current contract liabilities from prepayments | 31 | 21,720 | 21,895 |
| Other current contract liabilities | 31 | 8,862 | 8,500 |
| Current liabilities | 175,383 | 160,211 | |
| Equity and liabilities | 286,586 | 279,679 |
Further information on the Consolidated Balance Sheet is provided in the Notes to the Consolidated Financial Statements. The Notes to the Consolidated Financial Statements are an integral part of the consolidated financial statements.
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Consolidated Statement of Changes in Equity
| in €k | Number of shares (in units) | Subscribed capital | Capital reserves | Treasury shares | Other reserves and currency translation effects | Profit carried forward | Total |
|---|---|---|---|---|---|---|---|
| As of January 1, 2024 | 13,382,324 | 40,000 | 36,463 | -13,177 | -3,834 | 26,312 | 85,765 |
| Income and expenses recognized in other comprehensive income (OCI) | 1,005 | 1,005 | |||||
| Taxes on transactions recognized in other comprehensive income (OCI) | 208 | 208 | |||||
| Share-based payment | -55 | -55 | |||||
| Dividend | -29,441 | -29,441 | |||||
| Net income | 31,026 | 31,026 | |||||
| As of December 31, 2024 | 13,382,324 | 40,000 | 36,463 | -13,177 | -2,676 | 27,897 | 88,507 |
| As of January 1, 2025 | 13,382,324 | 40,000 | 36,463 | -13,177 | -2,676 | 27,897 | 88,507 |
| Income and expenses recognized in other comprehensive income (OCI) | -3,524 | -3,524 | |||||
| Taxes on transactions recognized in other comprehensive income (OCI) | -135 | -135 | |||||
| Share-based payment | 58 | 58 | |||||
| Share buy-back | -33,163 | -1,508 | -1,508 | ||||
| Dividend | -32,118 | 32,118 | |||||
| Net income | 30,687 | 30,687 | |||||
| As of December 31, 2025 | 13,349,161 | 40,000 | 36,463 | -14,685 | -6,277 | 26,467 | 81,968 |
Further information on the Consolidated Statement of Changes in Equity is provided in the Notes to the Consolidated Financial Statements. The Notes to the Consolidated Financial Statements are an integral part of the consolidated financial statements.
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Further Information
Consolidated Cash Flow Statement
| in €k | Note | Jan 1 to Dec 31, 2025 | Jan 1 to Dec 31, 2024 |
|---|---|---|---|
| Net income | 30,687 | 31,026 | |
| Amortization, depreciation and impairment | 16,138 | 14,600 | |
| Gain from disposals of non-current assets | -165 | -120 | |
| Income taxes | 15,765 | 11,322 | |
| Other non-payment-related income and expenses | 213 | 140 | |
| Financial result | 2,463 | 3,155 | |
| Gross cash flow | 65,101 | 60,123 | |
| Increase/decrease in trade receivables and other receivables | -1,742 | -7,750 | |
| Increase/decrease in inventories | -5,982 | 1,005 | |
| Increase/decrease in trade payables | 5,628 | -4,769 | |
| Increase/decrease in contract liabilities from prepayments | 247 | 2,325 | |
| Increase/decrease in net operating working capital | -1,849 | -9,189 | |
| Changes in provisions | -2,493 | -2,058 | |
| Income taxes received/paid | -15,130 | -695 | |
| Changes in other net working capital | 3,134 | 1,538 | |
| Net cash inflow from operating activities | 48,762 | 49,718 | |
| Purchase of property, plant and equipment (without leases) | -7,396 | -8,383 | |
| Proceeds from sale of property, plant and equipment | 575 | 248 | |
| Payments for the acquisition of subsidiaries less acquired cash and cash equivalents | 0 | -2,103 | |
| Net cash outflow from investing activities | -6,821 | -10,238 | |
| Free cash flow | 41,941 | 39,481 | |
| Repayment of interest-bearing loans | -1,300 | -2,255 | |
| Share buy-back | -1,508 | 0 | |
| Dividend payout | -32,118 | -29,441 | |
| Interest received | 316 | 340 | |
| Interest paid | -2,755 | -3,582 | |
| Repayment of lease liabilities | -10,249 | -9,019 | |
| Net cash outflow from financing activities | -47,613 | -43,957 | |
| Net increase/decrease in cash funds | -5,672 | -4,476 | |
| Net foreign exchange difference | -1,297 | 604 | |
| Cash funds at January 1 | -19,486 | -15,614 | |
| Cash funds at December 31 | 21 | -26,455 | -19,486 |
Further information on the Consolidated Cash Flow Statement is provided in the Notes to the Consolidated Financial Statements. The Notes to the Consolidated Financial Statements are an integral part of the consolidated financial statements.
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Financial Statements // Notes
Further Information
Notes to the Consolidated Financial Statements of WashTec AG (IFRS) for Fiscal Year 2025
General
1. General information on the Group
The consolidated financial statements of the WashTec Group for the fiscal year January 1 to December 31, 2025 were prepared by the Management Board and submitted to the Supervisory Board for review on March 20, 2026. They are to be approved at the Supervisory Board meeting on March 20, 2026 and subsequently released for publication by the Management Board. The consolidated financial statements and Group Management Report may be accessed via the Bundesanzeiger (Federal Gazette) and the Unternehmensregister (Company Register) and downloaded from our website at https://ir.washtec.de/en/financial_reports/.
The ultimate parent company of the WashTec Group is WashTec AG, which is entered in the commercial register of the Local Court of the City of Augsburg, Germany, under registration number HRB 81.
The Company's registered office is Argonstrasse 7, 86153 Augsburg, Germany.
The Company's shares are in free float and are listed on the Prime Standard segment of Frankfurt Stock Exchange and on the OTC markets of the Berlin-Bremen, Düsseldorf, Munich and Stuttgart stock exchanges.
The purpose of the WashTec Group comprises the development, manufacture, sale and servicing of carwash products and washing chemicals, as well as leasing and all related services and financing solutions required in order to operate carwash equipment.
2. Basis of preparation of the consolidated financial statements
The consolidated financial statements of WashTec AG have been prepared in accordance with the International Financial Reporting Standards (IFRSs) of the International Accounting Standards Board (IASB) in force as of the balance sheet date together with the interpretations of the IFRS IC (IFRIC). They comply with the accounting standards applicable in the European Union for fiscal year 2025 and are also supplemented by additional information required under section 315e of the German Commercial Code (Handelsgesetzbuch, or HGB) and by the Group Management Report.
The consolidated financial statements are presented in euros. Unless otherwise indicated, all figures are rounded to the nearest thousand (€k); this may result in rounding differences. The fiscal year is the calendar year.
The WashTec Group's business performance in fiscal year 2025 was not materially affected by the prevailing geopolitical tensions and trade conflicts. This is primarily due to predominantly regional material procurement and the production sites in North America and Europe. The Group's own production facilities in North America in particular contribute towards minimizing risks. Climate-related matters mainly impact the WashTec Group's financial position, financial performance and cash flows through capital expenditure on carbon reduction measures, although there is currently no effect on useful lives and residual values of property, plant and equipment or intangible assets. Overall, on the basis of estimates, assumptions or judgments, there are no significant impacts on the financial position, financial performance and cash flows of the WashTec Group.
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Further Information
3. Basis of consolidation and consolidated group
Basis of consolidation
The consolidated financial statements comprise the financial statements of WashTec AG and its subsidiaries as of December 31 of each fiscal year. The financial statements of the subsidiaries are prepared using uniform accounting policies as of the same reporting date as the parent company's financial statements.
Subsidiaries are fully consolidated as of the acquisition date, which is the date when the Group obtains control. WashTec AG controls an investee from the point in time when WashTec AG is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Consolidation of an investee ceases when the parent company loses control of the investee.
All intragroup balances, transactions, income, expenses as well as unrealized gains and losses resulting from intragroup transactions are eliminated in full.
Consolidated group
In addition to the parent company, the consolidated financial statements of WashTec AG also contain the following group entities as of December 31, 2025 (shareholdings in accordance with 315e in conjunction with section 313 (2) HGB). Figures for companies in Germany are based on annual financial statements prepared in accordance with German commercial law; for foreign companies they are generally based on IFRS financial statements before consolidation.
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Further Information
| Consolidated entities as of December 31, 2025 | Shareholding in % | Parent | Business activity | Equity at Dec 31, 2025 in €k | Profit/loss for 2025 in €k | |
|---|---|---|---|---|---|---|
| German entities | ||||||
| WashTec Cleaning Technology GmbH, Augsburg, Germany (1-2) | 100 | A | I | 29,846 | 0 | |
| WashTec Holding GmbH, Augsburg, Germany (1-2) | 100 | B | II | 25,122 | 0 | |
| WashTec Carwash Management GmbH, Augsburg, Germany (1-2) | 100 | B | III | 51 | 0 | |
| WashTec Financial Services GmbH, Augsburg, Germany (1-2) | 100 | A | IV | 62 | 0 | |
| AUWA-Chemie GmbH, Augsburg, Germany (1-2) | 100 | B | V | 537 | 0 | |
| Foreign entities | ||||||
| WashTec France S.A.S., Boigny sur Bionne, France | 100 | C | VI | 14,911 | 3,106 | |
| Mark vii Equipment Inc., Arvada, USA | 100 | C | I | 35,692 | 2,111 | |
| WashTec S.r.l., Casale, Italy | 100 | C | VI | 1,521 | -333 | |
| WashTec UK Ltd., Great Dunmow, United Kingdom | 100 | C | VI | 6,286 | 735 | |
| WashTec A/S, Hedehusene, Denmark | 100 | C | VI | 3,042 | 873 | |
| WashTec Bilvask AS, Billingstad, Norway (6) | 100 | F | VI | 5,248 | 839 | |
| WashTec Cleaning Technology GmbH, Vienna, Austria | 100 | C | VI | 2,195 | 372 | |
| WashTec Spain S.A.U., Madrid, Spain | 100 | C | VI | 4,797 | 660 | |
| WashTec Cleaning Technology s.r.o., Nyrany, Czech Republic | 100 | D | VII | 7,048 | 559 | |
| WTHVII Cleaning Technologies Canada Inc., Burlington, Ontario, Canada (7) | 100 | E | VI | 576 | 244 | |
| WashTec Australia Pty Ltd., Sydney, Australia | 100 | C | VI | 4,200 | 748 | |
| WashTec Benelux B.V., Zoertermeer, Netherlands | 100 | C | VI | 3,328 | 659 | |
| WashTec Nordics AB, Bollebygd, Sweden | 100 | C | VI | 1,483 | -1 | |
| WashTec Polska Sp. z o.o., Warsaw, Poland | 100 | D | VI | 824 | 92 | |
| WashTec New Zealand Limited, Auckland, New Zealand | 100 | C | VI | 1,504 | 17 | |
| WashTec Operational Services Sp. z o.o., Kraków, Poland (6) | 100 | G | VI | 1,243 | 118 |
1) Profit or loss transferred to WashTec Holding GmbH
2) Profit or loss transferred to WashTec AG
3) Companies that have made use of the exemptions under Section 264 (3) of the German Commercial Code (vGB)
4) Indirect shareholding through WashTec A/S, Hedehusene, Denmark
5) Indirect shareholding through Mark VII Equipment Inc., Arvada, USA
6) Indirect shareholding through WashTec Polska Sp. z o.o., Warsaw, Poland
A) WashTec Holding GmbH
B) WashTec AG
C) WashTec Cleaning Technology GmbH
D) 50% of interests held by WashTec Cleaning Technology GmbH, 10% by WashTec Holding GmbH
E) Mark vii Equipment Inc., Arvada, USA
F) WashTec A/S, Hedehusene, Denmark
G) WashTec Polska Sp. z o.o., Warsaw, Poland
I) Production, sales and service entity
II) Holding company
III) Carwash rental
IV) Arrangement of finance for carwash equipment
V) Development, production and sale of chemical products
VI) Sales and service entity
VII) Production entity
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172
Changes in the consolidated group
There were no changes in the consolidated group in fiscal year 2025.
Acquisition of subsidiaries in prior years
For the acquisition of Car Kleen New Zealand Limited in fiscal year 2023, WashTec New Zealand Limited made payments of €817k in the first half of 2024. The agreed purchase price was thus paid in full after fulfillment of the contractual conditions.
Effective September 4, 2024, WashTec Polska Sp. z o.o. acquired 100% of the shares in longstanding distribution partner Mayco-WashTec Sp. z o.o., Kraków, Poland. The company has since traded as WashTec Operational Services Sp. z o.o. The purchase price for the acquisition amounted to €1,676k. Of this amount, €1,469k was paid out of cash funds by the December 31, 2024 reporting date.
4. Effects of new financial reporting standards
New or amended financial reporting standards entered into force in the reporting period. The WashTec Group applied the following new and revised International Financial Reporting Standards (IFRS) and Interpretations in fiscal year 2025.
Standards applied and amendments to existing standards
| Standard/ Interpretation | Title | Mandatory application | EU endorsement | Effects on the Group |
|---|---|---|---|---|
| IAS 21 | Amendments to IAS 21 – Lack of Exchangeability | January 1, 2025 | November 13, 2024 | None |
The International Accounting Standards Board (IASB) and the IFRS Interpretations Committee have also issued additional standards, interpretations and amendments as listed below that did not yet have to be applied in fiscal year 2025 and/or have not yet been endorsed by the European Union.
The WashTec Group had not elected early application of these standards as of December 31, 2025.
Standards and amendments not yet applied
| Standard/ Interpretation | Title | Mandatory application | EU endorsement | Effects on the Group |
|---|---|---|---|---|
| IFRS 7 / IFRS 9 | Amendments to IFRS 7 and IFRS 9 – Classification and Measurement | January 1, 2026 | May 27, 2025 | None |
| IFRS 7 / IFRS 9 | Amendments to IFRS 7 and IFRS 9 – Contracts Referencing Nature-dependent Electricity | January 1, 2026 | June 30, 2025 | None |
| IFRS | Annual improvements IFRS – Volume 11 | January 1, 2026 | July 9, 2025 | None |
| IFRS 18 | Presentation and Disclosure in Financial Statements | January 1, 2027 | February 13, 2026 | The standard will lead to changes in presentation in the consolidated income statement and the consolidated cash flow statement and to additional disclosures in the notes. |
| IFRS 19 | Subsidiaries without Public Accountability – Disclosure | January 1, 2027 | Open | None |
| IAS 21 | Amendments to IAS 21 – Translation to a Hyperinflationary Presentation Currency | January 1, 2027 | Open | None |
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Further Information
5. Accounting policies
The adopted accounting policies are (unless otherwise specified below) consistent with those applied in prior years. For the accounting policies applied in the prior year, please see the prior-year Notes to the Consolidated Financial Statements.
Currency translation
The consolidated financial statements are presented in euros. Annual financial statements of subsidiaries prepared in foreign currencies are translated using the functional currency method. The functional currency of a foreign company is its national currency. Items in the financial statements of such a company are measured in that currency.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the closing rate. All exchange differences are recognized in profit or loss with the exception of exchange differences relating to net investments in a foreign operation and adjustment items for currency translation. These are recognized in other comprehensive income until disposal of the net investment, when they are recognized as income or expense in the period. Deferred taxes arising from such exchange differences are likewise recognized in other comprehensive income.
Non-monetary items measured at historical cost in a foreign currency are translated using the exchange rate at the transaction date. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was measured. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of that foreign operation are treated as assets and liabilities of the foreign operation and are translated at closing rates.
Assets and liabilities of subsidiaries that do not report in euros are translated at the closing rate, and their income and expenses are translated at the average exchange rates for the fiscal year. Exchange differences are recognized in other comprehensive income as a separate component. On disposal of a foreign operation, the cumulative amount recognized in other comprehensive income is reclassified to profit or loss.
Property, plant and equipment
Property, plant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses. The cost of a replacement for part of an item of property, plant and equipment is recognized in the carrying amount of the item when the cost is incurred, if the recognition criteria are met. In addition to directly attributable costs, the cost of self-constructed assets also includes an allocation of material and production overheads and depreciation. Costs of servicing and maintenance are recognized in profit or loss as incurred. Depreciation is allocated pro rata temporis on a straight-line basis over the expected useful life.
Property, plant and equipment is mostly depreciated using the following useful lives:
| Property, plant and equipment | Useful life |
|---|---|
| Buildings | 20 to 50 years |
| Technical plant and machinery | 5 to 14 years |
| Other plant, fixtures and fittings | 3 to 8 year |
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Further Information
An item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising from derecognition (measured as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss when the item is derecognized. At the end of each fiscal year, an asset's residual value, useful life and method of depreciation are reviewed and, if necessary, adjusted.
Business combinations and goodwill
Business combinations are accounted for by applying the acquisition method. For this purpose, the cost of the acquisition is determined as the fair value of the consideration transferred, meaning the sum of the assets transferred, equity instruments issued and liabilities assumed at the acquisition date. Incidental expenses are generally recognized as expense.
Goodwill is initially measured at cost. It is measured as the excess of the cost of the business combination over the acquirer's share in the fair value of the acquiree's identifiable assets, liabilities and contingent liabilities. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. It is not amortized but is tested for impairment at least annually and whenever there is an indication that it may be impaired. For the purpose of impairment testing, goodwill acquired in a business combination is allocated, from the acquisition date, to the Group's cash generating units that are expected to benefit from the synergies of the business combination.
Intangible assets
Intangible assets mainly comprise acquired patents, technologies, capitalized development costs, licenses and software.
Intangible assets are mostly amortized using the following useful lives:
| Intangible assets | Useful life |
|---|---|
| Acquired patents and technologies | 8 years |
| Licences and software | 3 to 8 years |
| Capitalized development costs | 6 to 8 years |
Acquired intangible assets
Intangible assets not acquired in a business combination are measured at cost on initial recognition and subsequently measured at cost less any accumulated amortization and impairment losses.
A distinction is made between intangible assets with finite and indefinite useful lives. In the reporting period, the Group only had assets with finite useful lives.
Intangible assets with a finite useful life are amortized on a straight-line basis over their economic useful life. The amortization period and the amortization method are reviewed at the end of each fiscal year and adjusted if expectations have changed. There were no changes in fiscal year 2025.
WashTec Management Report Financial Statements // Notes Further Information
Internally generated intangible assets (research and development costs)
Research costs are recognized as expense in the period in which they are incurred. Development costs for a given project comprise all directly attributable costs (mainly personnel expenses) as well as allocated overheads. They are capitalized as an intangible asset only if the asset can be identified, a future economic benefit is expected and the cost can be measured reliably during development. In addition, development costs are only capitalized if completion of development and subsequent use or sale are technically and financially feasible and intended.
After initial recognition of development costs as an asset, the cost model is applied, meaning that the asset is carried at cost less any accumulated amortization and accumulated impairment losses. Amortization begins on completion of the development phase from the date at which the asset can be used. The asset is amortized over the period of the expected future economic benefits. During the development phase, when the useful life is indefinite, the asset is tested annually for impairment.
Impairment of non-financial assets
Assets with a finite useful life are tested at each reporting date for indications of impairment. If there is such an indication, the Group estimates the asset's recoverable amount. An asset's recoverable amount is fair value less costs of disposal or value in use, whichever is higher. Value in use is determined using a suitable valuation model. For this purpose, the expected future cash flows are discounted to present value by applying a pretax discount rate that reflects the current market assessment of the time value of money and the risks specific to the asset. Recoverable amount is estimated for each individual asset or, if it cannot be estimated for an asset, for the cash-generating unit to which the asset belongs. If the carrying amount of an asset exceeds its recoverable amount, the asset is impaired and is written down to its recoverable amount. Impairment losses recognized in prior reporting periods are only reversed through profit or loss if there has been a change in the assessment used to determine the recoverable amount. The increased carrying amount may not exceed the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized in the past. Impairment losses are reversed through profit or loss.
Intangible assets with an indefinite useful life and goodwill are tested for impairment annually and if there are events or circumstances that indicate that an asset may be impaired.
Goodwill is tested for any impairment by estimating the recoverable amount of the group of cash-generating units to which the goodwill has been allocated. The groups of cash-generating units in the Group correspond to the operating segments identified in accordance with IFRS 8. These are the Europe and other segment and the North America segment. Further details on the operating segments are presented in Note 7.
If the recoverable amount of a group of cash-generating units is less than the units' carrying amount, an impairment loss is recognized. An impairment loss recognized for goodwill is not permitted to be reversed in subsequent reporting periods. The Group carries out annual goodwill impairment testing after completion of the budgeting process.
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176
Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Initial recognition takes place when the Company becomes a party to the contractual provisions of the financial instrument.
All regular way purchases and sales of financial assets are accounted for at the trade date, which is the date when the Group commits itself to purchase or sell the asset. Regular way purchases or sales require delivery of the asset within the timeframe established by regulation or convention in the marketplace.
Financial assets
Financial assets primarily comprise cash and cash equivalents, trade receivables, other receivables, derivatives with a positive market value and other financial assets.
Financial assets are classified as at amortized cost (AC), at fair value through other comprehensive income (FVTHOCI) or at fair value through profit or loss (FVTHP/L). On initial recognition, they are classified on the basis of the entity's business model for managing financial assets and of the contractual cash flow characteristics of the financial asset, and are measured at fair value. Financial assets not subsequently measured at fair value through profit or loss are initially measured at fair value plus transaction costs directly attributable to the acquisition or issue of the financial asset.
Financial assets at amortized cost (AC):
This category comprises financial assets held within a business model whose objective is to hold financial assets in order to collect contractual cash flows where the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial recognition, the financial assets are measured at amortized cost less any accumulated impairment losses. Receivables with a significant financing component are discounted at current market interest rates if the effect is material. Such receivables are subsequently measured at amortized cost using the effective interest method less any accumulated impairment losses. Gains and losses on derecognition or impairment of the financial assets are recognized in profit or loss.
Cash and cash equivalents comprise cash on hand and bank balances that have a term of less than three months from the date of acquisition and are carried at face value. For the purposes of the consolidated cash flow statement, cash funds consist of cash and cash equivalents as defined above plus any utilized bank overdrafts.
Financial assets at fair value through other comprehensive income (FVTHOCI):
This category comprises financial assets held within a business model whose objective is both to hold financial assets in order to collect contractual cash flows and to sell financial assets where the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
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Further Information
After initial recognition, these are measured at fair value through other comprehensive income.
Financial assets at fair value through profit or loss (FVthP/L):
Financial assets not measured at amortized cost (AC) or at fair value through other comprehensive income (FVthOCl), and derivatives not designated as hedging instruments for which hedge accounting is applied, are measured at fair value through profit or loss (FVthP/L). In addition, financial assets can be voluntarily designated in certain circumstances as at fair value through profit or loss (FVthP/L). The Group does not currently make use of this option.
Impairment of financial assets:
The Group tests financial assets, and groups of financial assets not at fair value through profit or loss, for impairment as of each balance sheet date.
A risk allowance is normally recognized on the basis of the general approach using a three-stage model in relation to changes in the default risk on a financial asset. On initial recognition, all financial assets are normally classified in stage 1 and their 12-month expected credit loss determined. If the credit risk on a financial asset has increased since the previous reporting date, the asset is transferred to stage 2. WashTec assumes a significant increase in credit risk if the financial asset is more than 30 days past due. Where there is additionally objective evidence of impairment, a financial asset is transferred to stage 3. Objective evidence of impairment comprises the initiation of legal action or the fact that payments are past due by more than 90 days. In stage 2 and 3, the risk allowance is recognized in the amount of the lifetime expected credit losses.
Impairment losses on trade receivables without a significant financing component are accounted for using the simplified approach. In addition, an entity can likewise elect to apply the simplified approach to trade receivables with a significant financing component. For this purpose, the risk allowance is recognized in the amount of the lifetime expected credit losses. The Group makes use of this election for trade receivables with a significant financing component and calculates the impairment losses on the basis of an impairment table.
Trade receivables have similar credit risk characteristics. For the measurement of lifetime expected credit losses, trade receivables are grouped based on days past due. The impairment rates are based on country-specific credit loss rates over the past three years and are adjusted for forward-looking macroeconomic factors affecting customer solvency, such as country-specific risks. In the event of objective evidence of impairment, e.g. receivables past due more than one year, receivables are impaired by recognizing an allowance for the amount at risk of default. The Group considers internally developed information or information obtained from external sources indicating that it is unlikely that the debtor will be able to pay its credit obligations in full to be a default event.
The risk allowance for other financial assets and cash and cash equivalents is recognized using the general approach. Expected credit losses on other financial assets and on cash and cash equivalents are immaterial and are not recognized.
Derecognition of financial assets:
A financial asset (or a part of a financial asset or a part of a group of similar financial assets) is derecognized when contractual rights to the cash flows from the financial asset expire or the financial asset is transferred and the transfer meets the criteria for derecognition under IFRS 9. If a receivable is classified as uncollectible, it is derecognized.
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Further Information
Financial liabilities
The financial liabilities mainly comprise liabilities to credit institutions, trade payables, derivatives with a negative market value and other financial liabilities. Financial liabilities are classified as non-current if their remaining term is more than twelve months; they are classified as current if their remaining term is less than twelve months.
Financial liabilities are classified as at amortized cost (FLAC) or at fair value through profit or loss (FVTHP/L).
Financial liabilities are normally initially recognized at fair value and subsequently measured at amortized cost (FLAC) using the effective interest method. Financial liabilities at fair value through profit or loss, derivatives with a negative market value and financial liabilities designated on initial recognition at fair value through profit or loss are subsequently measured at fair value through profit or loss (FVTHP/L). Financial liabilities not subsequently measured at fair value through profit or loss are initially measured at fair value less transaction costs.
Derecognition of financial liabilities:
A financial liability is derecognized when the obligation specified in the contract is discharged, canceled or expires.
Derivative financial instruments and hedging
The WashTec Group used derivative financial instruments in the form of interest rate swaps to manage interest rate risk in the reporting year. Derivative financial instruments are initially recognized and subsequently measured at fair value and, according to their market value, are accounted for as other financial assets or other financial liabilities. Changes in fair value are accounted for according to whether a derivative financial instrument is designated in an effective hedge. Derivatives without hedge accounting are recognized through profit or loss (FVTHP/L).
The fair value of a derivative financial instrument is accounted for in full in other non-current financial assets or other non-current financial liabilities if the remaining term of the derivative is more than twelve months. It is accounted for in full in other current financial assets or other current financial liabilities if the remaining term of the derivative is less than twelve months.
At the inception of a hedging relationship, both the hedging relationship and the Group's risk management objectives and strategies with regard to the hedge are formally designated and documented. The documentation includes the identification of the hedging instrument, the hedged item, the nature of the hedged risk and how the entity assesses whether the hedging relationship meets the hedge effectiveness requirements (including an analysis of the reasons for any hedge ineffectiveness and how the hedge ratio is determined).
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A hedging relationship meets all hedge effectiveness requirements if there is an economic relationship between the hedged item and the hedging instrument, the effect of credit risk does not dominate the value changes that result from that economic relationship and the hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the entity actually hedges and the quantity of the hedging instrument that the entity actually uses to hedge that quantity of hedged item.
Cash flow hedges
A cash flow hedge is the hedge of exposure to variability to cash flows that is attributable to a particular risk associated with all, or a component of, a recognized asset or liability or a highly probable forecast transaction and could affect profit or loss.
The effective portion of changes in the fair value of derivative financial instruments designated as hedging instruments in cash flow hedges is recognized in other comprehensive income and included in other reserves. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss. The amounts recognized in other reserves are reclassified to profit or loss in the period during which the hedged transaction affects profit or loss, such as when hedged financial income or expense is recognized or a forecast sale occurs.
If a hedging instrument expires or is sold or terminated, or if the hedging relationship no longer meets the criteria for hedge accounting, any cumulative deferred amounts at that time remain in other reserves for as long as the hedged item continues to exist. If the hedged transaction is no longer expected to occur, the cumulative amounts presented in other reserves are reclassified to profit or loss.
Net investments in foreign operations
A monetary item receivable from a foreign operation for which settlement is neither planned nor likely to occur in the foreseeable future is a part of the entity's net investment in a foreign operation. Such monetary items are non-current receivables from foreign subsidiaries of the Group. Exchange differences arising on a monetary item that forms part of a net investment in a foreign operation are recognized in profit or loss in the separate financial statements of the subsidiary. In the consolidated financial statements, such exchange differences are recognized in other comprehensive income and included in other reserves. On disposal of the subsidiary, they are reclassified from other reserves to profit or loss (gains or losses from exchange differences).
Inventories
Inventories are measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.
The cost of raw materials, consumables and supplies is determined on a rolling average basis. The cost of finished goods and work in progress includes directly attributable costs as well as a reasonable allocation of material and production overheads on the basis of normal capacity utilization. Borrowing costs are not included.
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Treasury shares
The cost of any treasury shares purchased by WashTec AG is accounted for as a single adjustment in equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of treasury shares.
Provisions
Other provisions
Other provisions are recognized for all legal or constructive obligations to third parties as of the balance sheet date whose timing or amount is uncertain. They are measured at the present value of the best estimate of the expenditures required to settle the obligations. If the Group expects reimbursement of some or all of a provision (such as through an insurance policy), the reimbursement is recognized as a separate asset if it is virtually certain. Non-current provisions are discounted at pre-tax market interest rates where the effect of the time value of money is material. The effect of the time value of money is presented in the financial result. Provisions are normally reversed to the same item in the income statement for which they were recognized.
Provisions for pensions
Provisions for pensions are calculated using the projected unit credit method (IAS 19 revised). This takes into account the pensions known and vested as of the balance sheet date as well as expected future increases in salaries and pensions. Actuarial gains and losses are recognized immediately in their entirety in other comprehensive income net of deferred taxes. The service cost and interest are presented in operating earnings. For further details, please see Note 26.
Provisions for partial retirement agreements (Germany only)
Partial retirement agreements are largely based on the "block" model. This gives rise to two types of obligations, which are each measured at present value in accordance with actuarial principles and are accounted for separately. The first type of obligation relates to the cumulative outstanding settlement amount, which is recognized pro rata temporis over the active/working phase. The cumulative outstanding settlement amount is based on the difference between the employee's remuneration before the inception of the partial retirement agreement (including the employer's share of social insurance contributions) and the remuneration for part-time employment (including the employer's share of social insurance contributions but excluding top-up amounts). The second type of obligation relates to the employer's obligation to pay top-up amounts plus an additional contribution to statutory pension insurance. In accordance with IAS 19 (revised), this is recognized as a provision pro rata temporis over the working phase.
Share-based payment
IFRS 2 distinguishes between equity-settled share-based payments and cash-settled share-based payments. For their service, the Management Board and Supervisory Board of WashTec AG receive cash-settled share-based remuneration comprising both components.
In the case of cash-settled share-based remuneration, the resulting liability is recognized at fair value through profit or loss over the period of time in which the service is performed. Fair value is estimated using a suitable option price model. Conditions relating to the WashTec AG share price (market conditions) are included in measurement. Performance-related exercise conditions are also included. The equity-settled share-based payment component is recognized directly in other comprehensive income. Obligations
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E
from cash-settled share-based payment are recognized in other liabilities at fair value taking into account the remaining duration of the program. Please see Note 37 for further details.
Leases
A lease is a contract that conveys the right to control the use of an asset (the underlying asset) for a certain period of time in exchange for consideration. For all leases, the Group normally recognizes a right-of-use asset and a lease liability for the lease payments. Leases are recognized as a right-of-use asset and a corresponding lease liability at present value from the time the underlying asset is made available to the Group.
Lease liabilities comprise fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate and are initially measured using the index or rate as at the commencement date, amounts expected to be payable by the lessee under residual value guarantees, the exercise price of a purchase option if it is reasonably certain to be exercised and payments of penalties for terminating the lease if the lease term reflects the lessee exercising an option to terminate the lease.
The lease payments are discounted at the lessee's incremental borrowing rate. The lessee's incremental borrowing rate is determined over various maturities on the basis of a risk-free interest rate plus a margin and a country-specific risk premium. Each lease payment is divided into a principal portion and an interest portion. Interest is recognized in profit or loss over the lease term, resulting for each period in a constant periodic rate of interest on the remaining balance of the liability.
Right-of-use assets are measured at cost comprising the amount of the initial measurement of the lease liability, any lease payments made at or before the commencement date, less any lease incentives received, any initial direct costs incurred by the lessee and the estimated cost relating to dismantling obligations.
Most leases are entered into for fixed terms of one to three years. Some leases of office and warehouse buildings are for longer terms. Leases may also include implicit extensions or extension and termination options. The Group makes use of such arrangements to obtain maximum operational flexibility. Either party can exercise the existing extension and termination options. The notice periods agreed for the termination options are sufficient for alternatives to be found in good time where necessary.
When determining the lease term for buildings, Management considers all facts and circumstances that create an economic incentive to exercise any options to extend or not to exercise any option to terminate. The main factors considered are the terms, satisfaction with the working relationship with the lessor and logistical considerations in connection with the Group's forward strategy. If the Group is satisfied with the working relationship and these factors are also expected to be compatible with the corporate strategy looking ahead, it is considered reasonably certain that the leases will be extended/not terminated. Changes in the lease term resulting from the exercise of an option to extend or an option to terminate are only included in the lease term if it is reasonably certain that the option to extend will be exercised or that the option to terminate will not be exercised.
This is reassessed upon the occurrence of any significant event or any significant change in circumstances that affects the previous assessment and is in the control of the lessee. Lease contract terms and conditions are negotiated individually and vary considerably.
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In the subsequent measurement of lease liabilities, the carrying amount is increased by the interest expense for the lease liability and reduced by the lease payments made. For potential future increases in variable lease payments that depend on an index or rate, the lease liability and the right-of-use asset are remeasured when the adjustment to the lease payments takes effect.
Right-of-use assets are subsequently measured at amortized cost. They are depreciated on a straight-line basis over the shorter of useful life and lease term. If a purchase option is reasonably certain to be exercised, they are depreciated over the useful life of the asset underlying the lease.
In the case of leases that include an extension or termination option, the lease liability is remeasured and the right-of-use asset adjusted if a significant event or significant change in circumstances occurs that is within the Group's control and was assessed differently on initial measurement.
The Group makes use of the exemptions for short-term leases and for leases of low-value assets that are not short-term leases and recognizes their lease payments on a straight-line basis as an expense in profit or loss. In addition, the provisions of IFRS 16 are not applied to leases of intangible assets.
Please refer to Notes 10, 15 and 29 for information on right-of-use assets, lease liabilities, depreciation and interest expense.
Contract liabilities
The entity's obligations to transfer goods or services to a customer for which the entity has received consideration from the customer are recognized as contract liabilities in the balance sheet (see also Revenue Recognition). The items presented as contract liabilities in the Group are prepayments on orders and deferred income, which mostly relate to full maintenance, extended guarantees and prepaid service agreements.
Income taxes
The current income tax charge is calculated for the consolidated financial statements on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where subsidiaries operate and generate taxable net income. For tax provisions, the expected tax payment is used as a best estimate. Uncertain tax positions are reviewed on an ongoing basis. Where it appears likely that the tax authorities will not recognize an uncertain tax treatment, the Group generally recognizes this in its financial statements using either the most likely amount method or the expected value of the tax effect. If estimates change over time, for example due to findings in the course of tax audits or current case law, this has a corresponding impact on the amount of risk provision deemed necessary. Uncertainties exist in particular in cases that are the subject of ongoing tax audits but have not yet been finally assessed, or in cases that are under discussion due to uncertain legal situations or new court rulings. Deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. Current and deferred taxes are recognized in profit or loss unless tax relates to transactions that are recognized in other comprehensive income.
Deferred taxes are recognized for temporary differences at consolidated entities between IFRS-basis carrying amounts of assets or liabilities and their tax base and for consolidation adjustments in profit or loss.
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Deferred tax assets are recognized for unused tax loss carryforwards, unused tax credits and temporary differences to the extent that it is probable that taxable profit will be available against which the unused tax losses and unused tax credits or temporary differences can be utilized.
Deferred tax liabilities are not recognized for temporary differences arising from the initial recognition of goodwill. Deferred taxes are also not recognized for temporary differences if the temporary differences arise from the initial recognition of an asset or liability in a transaction which at the time of the transaction affects neither IFRS-basis accounting profit (before income taxes) nor taxable profit and which is not a business combination. Deferred taxes are recognized for transactions in which equal deductible and taxable temporary differences arise.
Deferred tax liabilities are recognized for all taxable temporary differences associated with investments in subsidiaries unless the entity holding the investment is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future ("outside basis differences").
Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax balances relate to the same taxation authority.
Revenue recognition
Revenue is recognized when a performance obligation has been satisfied by transfer of a promised good or promised service to a customer. An asset is transferred when (or as) the customer obtains control of that asset.
Performance obligations relating to the sale of equipment, accessories and merchandise are satisfied at a point in time when the promised asset is transferred or the customer
obtains control of the asset. This is usually the case on acceptance, shipment or collection of finished products or merchandise or on the acceptance of the installation of equipment.
Performance obligations relating to services are satisfied over a period of time, although on-call service deployments are generally completed in a very short period of time. The payment period usually granted is 30 days.
For financing components, the Group makes use of the practical expedient of not taking into account the effects of a financing component if the period between when the goods or services are transferred and when the customer pays for them is one year or less or if the financing component is not material in both absolute and relative terms.
Performance obligations relating primarily to full maintenance agreements, extended warranties and prepaid service agreements are satisfied over time and presented in contract liabilities. In these cases, the customer simultaneously receives and consumes the benefits provided by the performance as it is performed. The WashTec Group measures progress using an output method based on time elapsed. Satisfaction of the performance obligations depends on the contract terms and is generally on a monthly basis. This ensures that output is determined correctly. The revenue is recognized and billed when performance is completed. Contract liabilities are reversed to profit or loss accordingly. The payment period usually granted is 30 days, although some service agreements are prepaid. WashTec considers an output method to be the most appropriate means of providing a faithful depiction as service deployments do not involve work in progress attributable to the customer.
WashTec also sells equipment to leasing companies that lease it on to customers. This revenue is recognized at the time of the sale.
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The revenue corresponds in amount to the transaction price and comprises the amount of consideration to which the WashTec Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding value added tax. Revenue reductions such as rebates, prompt payment discounts or bulk discounts are included as variable consideration if it is highly probable that a reversal of revenue will not occur. This is estimated using the expected value method. Bulk discounts are accounted for as other financial liabilities.
The transaction price is allocated to the individual performance obligations on the basis of the relative stand-alone selling prices. A discount is allocated proportionately to all performance obligations in the contract except when there is observable evidence that the discount relates in whole or part to only one or more, but not all, performance obligations in a contract. As there are no directly observable prices at which the WashTec Group would sell a promised good or promised service separately in similar circumstances and to similar customers, the stand-alone selling price is estimated at contract inception using the expected cost plus a margin approach.
The WashTec Group makes use of the practical expedient of recognizing those costs of obtaining a contract and costs to fulfill a contract when incurred if the amortization period of the asset that would otherwise have been recognized is one year or less. At WashTec, this applies to all such costs.
Cost of sales
Cost of sales comprises the cost of producing or providing sold products and services. In addition to directly attributable material, labor and energy costs, this also includes production and service overheads. Overheads include depreciation of property, plant and equipment and inventory write-downs.
Earnings per share
Earnings per share is calculated by dividing net income by the weighted average number of shares outstanding.
For the calculation of basic earnings per share, the earnings attributable to the holders of ordinary shares in the parent company are divided by the weighted average number of ordinary shares in circulation during the year.
For the calculation of diluted earnings per share, the weighted average number of ordinary shares outstanding is adjusted to account for all potentially dilutive shares.
Segment reporting
In accordance with IFRS 8, operating segments are identified using the management approach. Under that approach, external segment reporting is based on the internal group organizational and management structure and on internal reporting to the Management Board as the entity's chief operating decision maker. If the aggregation criteria are met, operating segments are aggregated into reportable segments.
A geographical segment is a distinguishable component of an entity that is engaged in providing products or services within a particular economic environment and is subject to risks and generates returns that differ from those of components operating in other economic environments.
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6. Estimates, assumptions and judgments
In preparing the consolidated financial statements, it is necessary to make certain assumptions, estimates and judgments that may affect the presentation of the net assets, financial position and results of operations. These mainly relate to the determination of economic useful lives, the measurement of provisions, the recoverability of deferred tax assets and the assumptions regarding future cash flows and discount rates. All judgments are continually reassessed and are based in each case on historical experience and current knowledge with regard to future events. Actual amounts may differ from assumptions or estimates. Changes are recognized when better knowledge becomes available and may lead in future periods to adjustments to the carrying amount of the assets or liabilities concerned. There is significant estimation uncertainty in relation to actuarial assumptions, notably for pensions. There are also other estimation uncertainties and judgements that have no material impact on the financial statements.
Impairment of non-financial assets
In connection with impairment testing of goodwill, intangible assets with indefinite useful lives and other non-financial assets, it is necessary to estimate future cash flows from each asset or cash-generating unit in order to determine value in use. An appropriate discount rate must also be determined to obtain the present value of such cash flows. The estimation of future cash flows requires long-term earnings forecasts in light of economic conditions and sectoral development. For further details, please see Note 5.
Depreciation of property, plant and equipment and amortization of intangible assets require estimates and assumptions to be made in order to determine uniform Group-wide economic useful lives and methods of depreciation and amortization.
Impairment of financial assets
In application of the simplified approach for trade receivables without a significant financing component and for trade receivables with a significant financing component, lifetime expected credit losses are determined. For this purpose, trade receivables are grouped based on days past due. The impairment rates are based on credit loss rates over the past three years and are adjusted for forward-looking macroeconomic factors affecting customer solvency.
Impairments for other receivables are determined using the general approach, taking into account all reasonable and reliable information, such as externally available credit ratings.
Deferred tax assets
Deferred tax assets are recognized to the extent that it is probable that sufficient taxable profits will be available against which they can be utilized. Management estimates relate to the amount of taxable net income and the expected timing. For further details, please see Note 16.
Pensions, other post-employment benefits and partial retirement benefits
The costs of pension and partial retirement obligations are determined using actuarial methods. Their actuarial valuation is based on assumptions relating to discount rates, future wage, salary and pension increases and life expectancy. Due to the long-term nature of these plans, such estimates are subject to significant uncertainty. Further details are provided in Notes 26 and 27.
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Share-based payment
Cash-settled share-based payment is recognized at fair value at each balance sheet date. The Monte Carlo model is used to estimate the fair value of share-based payments. This depends on the terms under which the payment is granted. It is also necessary to determine suitable input parameters for the valuation technique, notably volatility of the share price and the risk-free rate of interest for the remaining term. The assumptions and techniques used are shown in Note 37.
Provisions
Provisions for termination benefits and guarantee provisions are recognized on the basis of expectations, estimates of the probability of occurrence, and planned measures. The amount of potential payment obligations is estimated on the basis of an assessment of the situation at the time..
Development costs
Development costs are capitalized in accordance with the accounting policies described in Note 5. Initial recognition of these costs is based on management's assessment of technical and economic feasibility. This is generally the case if a product development project has reached a specific milestone in a predefined project management model.
Notes to the Consolidated Income Statement
7. Segment reporting
The identification of the segments and the choice of figures to present are based on the internal management and reporting system (management approach). The individual segments are controlled on the basis of revenue and EBIT. Segment results consist of income and expenses directly attributable to each reporting segment and to Group charges for Group-wide functions. The Consolidation column contains consolidation adjustments to eliminate transactions in profit or loss between operating segments. This mainly relates to the elimination of intercompany profits from sales of goods. The sum of the reportable segments, after consolidation, corresponds to net income. Transfer prices between individual Group entities are established on an arm's length basis. They take into account market-specific and economic conditions in the individual segments. The accounting principles for segment reporting are based on the IFRS accounting principles applied in the consolidated financial statements.
For consistency in internal and external communications, we present the product groups under revised names in external reporting from 2025. Revenue is divided into the business lines Equipment, Service, Consumables (previously Chemicals), and Other.
The Group's segments are business units that generate their revenue primarily through Equipment, Service and Consumables sales.
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| By segment 2025
in €k | Europe
and other | North
America | Consolidation | Group |
| --- | --- | --- | --- | --- |
| Revenue | 425,512 | 75,483 | -2,378 | 498,618 |
| of which with third parties | 423,298 | 75,320 | 0 | 498,618 |
| of which with other segments | 2,214 | 164 | -2,378 | 0 |
| Earnings before interest and taxes (EBIT) | 46,207 | 2,679 | 30 | 48,915 |
| EBIT margin (in%) | 10.9 | 3.5 | - | 9.8 |
| Financial income | | | | 332 |
| Financial expenses | | | | -2,795 |
| Earnings before taxes (EBT) | | | | 46,452 |
| Income taxes | | | | -15,765 |
| Net income | | | | 30,687 |
| Capital expenditure on intangible assets, property, plant and equipment and right-of-use assets | 16,247 | 2,569 | 0 | 18,815 |
| Amortization, depreciation and impairment of intangible assets, property, plant and equipment and right-of-use assets | 14,452 | 1,685 | 0 | 16,138 |
| By segment 2024
in €k | Europe
and other | North
America | Consolidation | Group |
| --- | --- | --- | --- | --- |
| Revenue | 394,744 | 85,199 | -3,055 | 476,889 |
| of which with third parties | 391,861 | 85,028 | 0 | 476,889 |
| of which with other segments | 2,883 | 172 | -3,055 | 0 |
| Earnings before interest and taxes (EBIT) | 41,848 | 3,653 | 3 | 45,503 |
| EBIT margin (in%) | 10.6 | 4.3 | - | 9.5 |
| Financial income | | | | 466 |
| Financial expenses | | | | -3,620 |
| Earnings before taxes (EBT) | | | | 42,348 |
| Income taxes | | | | -11,322 |
| Net income | | | | 31,026 |
| Capital expenditure on intangible assets, property, plant and equipment and right-of-use assets | 19,232 | 1,558 | 0 | 20,789 |
| Amortization, depreciation and impairment of intangible assets, property, plant and equipment and right-of-use assets | 13,010 | 1,591 | 0 | 14,600 |
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The breakdown of consolidated revenue by business lines is as follows:
| in €k | 2025 | 2024 |
|---|---|---|
| Equipment | 268,044 | 261,419 |
| Service | 155,131 | 144,595 |
| Consumables | 69,562 | 64,714 |
| Other | 5,881 | 6,161 |
| Total | 498,618 | 476,889 |
In 2025, around 1/7th (prior year: 1/5th) of Equipment sales, around 1/5th (prior year: 1/5th) of Service sales and around 1/10th (prior year: 1/10th) of Consumables sales were generated in the North America segment.
The Group generates approximately 81.3% (prior year: approximately 78.6%) of external sales in European countries. Germany and France account for the majority of total revenue here. After consolidation, Germany accounts for 31.6% (prior year: 30.2%) of consolidated revenue, relating to the business lines Equipment, Service, Consumables, and Other. France accounts for 14.2% (prior year: 12.3%) of consolidated revenue. External sales outside of Europe are primarily generated in North America and are mostly attributable to the United States. There were no instances in which revenue from transactions with major customers exceeded 10% of total revenue in fiscal year 2025.
The allocation of Group assets to segments is based on their geographical location. Sales to external customers reported in the geographical segments are allocated to segments according to the customers' geographical location. The Group does not have assets in the remaining countries as it does not have any sales companies there. Revenue with other countries is generated through exports to independent dealers.
Analysis of Group assets by geographical location:
| 2025 in €k | Europe and other | of which Germany | North America | Group |
|---|---|---|---|---|
| Property, plant and equipment | 23,540 | 19,685 | 9,646 | 33,185 |
| Capital expenditure on property, plant and equipment | 2,752 | 1,962 | 1,296 | 4,049 |
| Intangible assets including goodwill | 54,764 | 48,960 | 0 | 54,764 |
| Capital expenditure on intangible assets | 3,347 | 3,295 | 0 | 3,347 |
| Right-of-use assets | 19,904 | 9,489 | 1,913 | 21,818 |
| Capital expenditure on right-of-use assets | 10,147 | 5,501 | 1,272 | 11,419 |
| 2024 in €k | Europe and other | of which Germany | North America | Group |
| --- | --- | --- | --- | --- |
| Property, plant and equipment | 24,139 | 20,097 | 9,859 | 33,998 |
| Capital expenditure on property, plant and equipment | 3,289 | 2,396 | 237 | 3,526 |
| Intangible assets including goodwill | 54,250 | 48,310 | 0 | 54,250 |
| Capital expenditure on intangible assets | 5,510 | 4,818 | 0 | 5,511 |
| Right-of-use assets | 18,493 | 8,129 | 2,312 | 20,806 |
| Capital expenditure on right-of-use assets | 10,431 | 4,722 | 1,321 | 11,753 |
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8. Cost of sales, research and development expenses, and selling and administrative expenses
Analysis of cost of sales, research and development expenses, and selling and administrative expenses:
| in €k | Cost of sales | Research and development expenses | Selling expenses | Administrative expenses | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
| Cost of materials | 196,952 | 196,213 | 491 | 394 | 15,568 | 14,571 | 0 | 0 | 213,011 | 211,177 |
| Personnel expenses | 100,425 | 93,490 | 11,099 | 10,596 | 37,113 | 34,826 | 13,038 | 11,634 | 161,675 | 150,544 |
| Depreciation and amortization | 11,646 | 10,652 | 474 | 1,005 | 2,941 | 1,869 | 1,077 | 1,075 | 16,138 | 14,600 |
| Other costs | 33,402 | 28,870 | 2,183 | 4,517 | 12,873 | 12,052 | 10,151 | 8,441 | 58,610 | 53,879 |
| Total | 342,424 | 329,224 | 14,246 | 16,511 | 68,496 | 63,317 | 24,266 | 21,150 | 449,433 | 430,201 |
Other costs mainly comprise vehicle costs, costs of temporary workers and purchased services, maintenance and energy, and travel expenses. They also include costs of recruitment, professional development, office supplies, communication expenses, local taxes, and patent and storage costs.
Personnel expenses are directly allocated to functions. For a detailed presentation of personnel expenses and the average number of employees by function, please refer to Note 13.
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9. Other income and expenses
Other income and other expenses comprise all income and expenses that are not directly attributable to functions.
Other income
| in €k | 2025 | 2024 |
|---|---|---|
| Income from derecognized receivables | 1 | 7 |
| Income from exchange rate differences | 2,729 | 1,570 |
| Income from insurance settlements | 154 | 387 |
| Income from the disposal of non-current assets | 211 | 141 |
| Income from the sale of scrap | 691 | 770 |
| Other income | 727 | 685 |
| Total | 4,513 | 3,560 |
Other expenses
| in €k | 2025 | 2024 |
|---|---|---|
| Expense from loss allowances on trade receivables (incl. other receivables) | 517 | 840 |
| Expense from exchange rate differences | 2,537 | 2,052 |
| Insurance expenses | 1,446 | 1,345 |
| Losses from the disposal of non-current assets | 45 | 22 |
| Expenses from claims | 214 | 449 |
| Other expenses | 22 | 38 |
| Total | 4,782 | 4,745 |
10. Financial result
| in €k | 2025 | 2024 |
|---|---|---|
| Other interest income | 312 | 391 |
| Income from financial instruments | 20 | 75 |
| Financial income | 332 | 466 |
| Expense from interest-bearing loans | 1,916 | 2,558 |
| Interest expense from discounting lease liabilities | 754 | 685 |
| Other interest expense | 126 | 377 |
| Financial expenses | 2,795 | 3,620 |
| Financial result | -2,463 | -3,155 |
Other interest income in the reporting year mainly comprises interest from tax refunds in the amount of €53k (prior year: €15k) and interest income on bank balances in the amount of €125k (prior year: €197k).
Other interest expense includes interest of €20k (prior year: €34k) for the discounting of trade receivables.
Of the interest income and interest expense, a total of €-1,709k (prior year: €-2,469k) is classified in the categories financial assets at amortized cost (AC), financial liabilities at amortized cost (FLAC) and financial assets or liabilities at fair value through profit or loss (FVthP/L).
Analysis of interest income and interest expenses by IFRS 9 categories:
| in €k | IFRS 9 category | 2025 | 2024 |
|---|---|---|---|
| Interest income | AC | 307 | 376 |
| FLAC | 6 | 14 | |
| FVthP/L | 20 | 75 | |
| Interest expense | AC | 9 | 304 |
| FLAC | 2,033 | 2,631 |
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11. Income taxes
The income taxes item relates to both current and deferred taxes.
The table below shows a reconciliation of expected to actual income taxes. To calculate the expected tax expense, earnings before taxes were multiplied by the Group tax rate of 32.2% (prior year: 32.2%). This is based on the tax rate for the parent company. The WashTec Group's effective tax rate is 33.9% (prior year: 26.7%).
| in €k | 2025 | 2024 |
|---|---|---|
| Expected income taxes | 14,976 | 13,653 |
| Differences from foreign tax rates | -1,080 | -1,372 |
| Non-deductible expenses | 917 | 1,154 |
| Change from permanent differences | 3,037 | 0 |
| Effects of tax rate changes | -569 | 0 |
| Utilization of loss carryforwards from for which no deferred tax assets recognized | -20 | -657 |
| Reversal of impairment on deferred tax on temporary differences and tax loss carryforwards | -799 | -666 |
| Adjustment for taxes from prior years | -655 | -894 |
| Other | -42 | 103 |
| Total | 15,765 | 11,322 |
The tax income from the tax rate changes is mainly attributable to the legislation establishing an immediate tax investment program in Germany, which entered force on July 18, 2025. The legislation includes a gradual reduction in the corporate income tax rate from 15% to 10% by one percentage point a year from the 2028 tax assessment period to 2032. This change resulted in a tax income of €563k on the remeasurement of deferred tax assets and liabilities at the consolidated German companies.
Income taxes consist of the following:
| in €k | 2025 | 2024 |
|---|---|---|
| Current tax expense | 15,765 | 11,628 |
| Deferred tax expense | 0 | -306 |
| Total | 15,765 | 11,322 |
In the fiscal year under review, €655k (prior year: €1,038k) was refunded by tax authorities in Germany and internationally and recognized in current tax expense.
12. Earnings per share
Calculation of basic earnings per share for 2025 and 2024:
| 2025 | 2024 | ||
|---|---|---|---|
| Net income | in €k | 30,687 | 31,026 |
| Weighted average number of shares outstanding | units | 13,379,578 | 13,382,324 |
| Earnings per share (basic = diluted) | in € | 2.29 | 2.32 |
The Management Board and Supervisory Board will recommend to the Annual General Meeting, which is due to be held on May 12, 2026, to appropriate the distributable profit of €38,139,702.55 shown in the Company's annual financial statements for fiscal year 2025 as follows: Payment of a dividend in the amount of €2.50 per eligible share (number of shares entitled to dividends as of December 31, 2025: 13,349,161), totaling €33,372,902.50, with the remaining distributable profit of €4,766,800.05 to be carried forward.
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13. Personnel expenses
Personnel expenses were recognized as follows:
| in €k | 2025 | 2024 |
|---|---|---|
| Wages and salaries | 135,415 | 126,569 |
| Social security contributions | 13,365 | 11,766 |
| Employer share of statutory and voluntary pension insurance (defined contribution) | 10,331 | 9,574 |
| Pension and partial retirement | 2,563 | 2,635 |
| Total | 161,675 | 150,544 |
The average number of employees by function is as follows:
| Average number of employees | 2025 | 2024 |
|---|---|---|
| Sales, marketing and servicing | 1,080 | 1,001 |
| Production, technology and development | 549 | 545 |
| Finance and administration | 183 | 169 |
| Total | 1,811 | 1,715 |
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Notes to the Consolidated Balance Sheet
14. Property, plant and equipment and intangible assets
Property, plant and equipment and intangible assets changed as follows:
| in €k | Cost | Depreciation and amortization | Carrying amount | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan 1, 2025 | Changes in consolidated group | Additions | Disposals | Reclassifications | Currency translation effects | Dec 31, 2025 | Jan 1, 2025 | Changes in consolidated group | Additions | Disposals | Reclassifications | Currency translation effects | Dec 31, 2025 | Jan 1, 2025 | Dec 31, 2025 | |
| Land, land rights and buildings | 59,167 | 0 | 614 | 24 | 248 | -1,401 | 58,604 | 36,642 | 0 | 902 | 24 | 0 | -275 | 37,246 | 22,525 | 21,358 |
| Technical plant and machinery | 34,063 | 0 | 1,785 | 193 | 976 | 165 | 36,798 | 25,662 | 0 | 1,704 | 184 | 963 | 105 | 28,250 | 8,401 | 8,547 |
| Other plant, fixtures and fittings | 15,051 | 0 | 1,423 | 1,910 | 6 | -363 | 14,207 | 12,358 | 0 | 1,024 | 1,806 | 0 | -334 | 11,241 | 2,694 | 2,966 |
| Prepayments and construction in progress | 379 | 0 | 227 | 0 | -292 | 0 | 314 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 379 | 314 |
| Property, plant and equipment | 108,660 | 0 | 4,049 | 2,126 | 938 | -1,598 | 109,923 | 74,662 | 0 | 3,630 | 2,013 | 963 | -504 | 76,737 | 33,998 | 33,185 |
| Internally generated development costs | 26,995 | 0 | 1,938 | 0 | 0 | 41 | 28,973 | 20,989 | 0 | 1,367 | 0 | 0 | 41 | 22,396 | 6,006 | 6,577 |
| Licenses and software acquired | 19,692 | 0 | -442 | 843 | 212 | -1 | 18,618 | 16,810 | 0 | 679 | 546 | 0 | -1 | 16,942 | 2,882 | 1,676 |
| Patents, technologies and other intangible assets | 3,877 | 0 | 316 | 0 | 1,500 | 23 | 5,717 | 3,621 | 0 | 411 | 0 | 0 | 44 | 4,076 | 257 | 1,641 |
| Goodwill | 86,831 | 0 | 0 | 0 | 0 | -2,351 | 84,480 | 42,947 | 0 | 0 | 0 | 0 | -2,267 | 40,680 | 43,884 | 43,800 |
| Prepayments and development projects in progress | 1,222 | 0 | 1,536 | 0 | -1,687 | 0 | 1,071 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,222 | 1,071 |
| Intangible assets (incl. Goodwill) | 138,616 | 0 | 3,347 | 843 | 25 | -2,288 | 138,857 | 84,366 | 0 | 2,457 | 546 | 0 | -2,184 | 84,093 | 54,250 | 54,764 |
| Total fixed assets | 247,277 | 0 | 7,396 | 2,969 | 963* | -3,886 | 248,780 | 159,028 | 0 | 6,087 | 2,559 | 963* | -2,688 | 160,831 | 88,248 | 87,949 |
- the counter-item results from transfers in connection with right-of-use assets
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Financial Statements // Notes
Further Information
| in €k | Cost | Depreciation and amortization | Carrying amount | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan 1,2024 | Changes in consolidated group | Additions | Disposals | Reclassifications | Currency translation effects | Dec 31,2024 | Jan 1,2024 | Changes in consolidated group | Additions | Disposals | Reclassifications | Currency translation effects | Dec 31,2024 | Jan 1,2024 | Dec 31,2024 | |
| Land, land rights and buildings | 57,349 | 0 | 648 | 0 | 468 | 702 | 59,167 | 35,613 | 0 | 853 | -47 | 0 | 129 | 36,642 | 21,736 | 22,525 |
| Technical plant and machinery | 33,693 | 0 | 1,289 | 937 | 87 | -69 | 34,063 | 24,811 | 0 | 1,802 | 917 | 0 | -34 | 25,662 | 8,882 | 8,401 |
| Other plant, fixtures and fittings | 15,520 | 4 | 1,256 | 1,883 | 0 | 154 | 15,051 | 13,014 | 0 | 1,015 | 1,821 | 0 | 150 | 12,358 | 2,506 | 2,694 |
| Prepayments and construction in progress | 601 | 0 | 330 | 0 | -555 | 3 | 379 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 601 | 379 |
| Property, plant and equipment | 107,163 | 4 | 3,522 | 2,819 | 0 | 791 | 108,660 | 73,438 | 0 | 3,670 | 2,692 | 0 | 246 | 74,662 | 33,725 | 33,998 |
| Internally generated development costs | 25,094 | 0 | 1,924 | 0 | 0 | -22 | 26,995 | 19,884 | 0 | 1,127 | 0 | 0 | -22 | 20,989 | 5,210 | 6,006 |
| Licenses and software acquired | 17,783 | 0 | 1,911 | 192 | 188 | 1 | 19,692 | 16,269 | 0 | 731 | 191 | 0 | 1 | 16,810 | 1,514 | 2,882 |
| Patents, technologies and other intangible assets | 3,935 | 0 | 0 | 0 | 0 | -58 | 3,877 | 3,595 | 0 | 67 | 0 | 0 | -41 | 3,621 | 340 | 257 |
| Goodwill | 85,061 | 650 | 0 | 0 | 0 | 1,121 | 86,831 | 41,772 | 0 | 0 | 0 | 0 | 1,175 | 42,947 | 43,289 | 43,884 |
| Prepayments and development projects in progress | 383 | 0 | 1,027 | 0 | -188 | 0 | 1,222 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 383 | 1,222 |
| Intangible assets (incl. Goodwill) | 132,256 | 650 | 4,861 | 192 | 0 | 1,041 | 138,616 | 81,520 | 0 | 1,924 | 191 | 0 | 1,112 | 84,366 | 50,736 | 54,250 |
| Total fixed assets | 239,419 | 653 | 8,383 | 3,011 | 0 | 1,833 | 247,277 | 154,958 | 0 | 5,595 | 2,882 | 0 | 1,358 | 159,028 | 84,461 | 88,248 |
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WashTec
Management Report
Financial Statements // Notes
Further Information
Intangible assets
Intangible assets amounted to €10,964k (prior year: €10,366k).
Research and development costs in the amount of €1,208k (prior year: €2,961k) were not capitalized as the criteria for capitalization under IAS 38 were not met.
There were no material contractual commitments for purposes such as the acquisition of property, plant and equipment or intangible assets.
Goodwill
The total goodwill with a carrying amount of €43,800k (prior year: €43,884k) is allocated in accordance with IFRS 8 to the Europe and other operating segment.
The goodwill allocated to the operating segments is routinely tested for impairment by determining value in use.
In accordance with the approach described in Note 5, Accounting policies, goodwill is tested for impairment on the basis of the Group-level planning for 2026 through 2030.
Planning is primarily based on the following assumptions based on the longstanding experience of management and the medium-term strategies for the individual markets. Management had further information from external market studies. The core assumptions are as follows:
- Revenue growth averaging approximately 4.1% p.a. (prior year: 3.7% p.a.)
- Cost increases of 3–4% p.a. (prior year 2–3% p.a.)
- Wage and salary cost increases of 3–4% p.a. (prior year 2–4% p.a.)
Assumptions made for discounting purposes were a pre-tax discount rate of 9.8% (prior year: 9.2%) and a long-term growth rate in perpetuity of 0% (prior year: 0%).
The discount rate is based on a weighted cost of debt of 4.2% (prior year: 4.4%), the weighted cost of equity and the capital structure. The cost of equity is based on a risk-free rate of return averaging 3.4% (prior year: 2.8%) and a beta of 1.0 (prior year: 1.0).
No indications of impairment were identified for goodwill in the WashTec Group in the reporting year. Nor would a 50 basis point increase in the discount rate and a 20% reduction in the future cash flows result in recognition of an impairment loss.
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Further Information
15. Right-of-use assets
The recognized leases primarily relate to rented buildings and leasing of service vehicles. They are included in right-of-use assets for other equipment, furniture and fixtures, and office equipment.
The table below shows the right-of-use assets recognized for leased assets:
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| Right-of-use assets - land and buildings | 8,197 | 10,809 |
| Right-of-use assets - other plant, fixtures and fittings | 13,556 | 9,760 |
| Right-of-use assets - machinery | 65 | 237 |
| Total | 21,818 | 20,806 |
Additions to right-of-use assets in the fiscal year amounted to €11,419k (prior year: €11,753k) and disposals and reclassifications to €-167k (prior year: €-414k). Currency translation effects account for €-189k (prior year €60k).
Depreciation of right-of-use assets is made up as follows:
| in €k | 2025 | 2024 |
|---|---|---|
| Right-of-use assets – land and buildings | 3,847 | 3,702 |
| Right-of-use assets – other plant, fixtures and fittings | 6,040 | 5,082 |
| Right-of-use assets – machinery | 164 | 222 |
| Total | 10,051 | 9,006 |
Please see Note 29 for further information on lease liabilities.
16. Deferred taxes
There are deferred tax assets in the amount of €5,213k (prior year: €4,604k) and deferred tax liabilities in the amount of €3,013k (prior year: €2,249k) relating to temporary differences.
Deferred tax liabilities are not recognized for outside basis differences as the entity holding the investment is able to control the timing of the reversal of the temporary differences and it is not probable that the temporary differences will reverse in the foreseeable future. The tax base of the unrecognized deferred tax liabilities is €1,499k (prior year: €2,132k).
Loss carryforwards and temporary differences have been recognized as deferred tax assets to the extent it is probable that the loss carryforwards or the temporary differences will be utilized on the basis of the internal planning for 2026 through 2030.
To the extent that it is not probable that loss carryforwards will be able to be utilized against future taxable net income, no deferred tax assets are recognized for them. Deferred tax assets were recognized for all loss carryforwards in the reporting year. In the prior year, no deferred tax assets were recognized for loss carryforwards amounting to €458k. This resulted in unrecognized deferred tax assets from loss carryforwards in the amount of €94k. Deferred tax assets were recognized for all temporary differences in fiscal year 2025. In the prior year, deferred tax assets were not recognized in relation to temporary differences in the amount of €4,772k. This corresponded to €1,200k in deferred tax assets not recognized for temporary differences.
Loss carryforwards in the amount of €549k have time restrictions with regard to utilization. Of this total, €305k will expire between 2026 and 2036 and €244k will expire between 2038 and 2040 if they cannot be utilized.
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Management Report
Financial Statements // Notes
Further Information
The deferred tax assets and liabilities relate, prior to offsetting, to the following material balance sheet items:
| in €k | Deferred tax assets | Deferred tax liabilities | ||
|---|---|---|---|---|
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | |
| Tax loss carryforwards | 140 | 258 | 0 | 0 |
| Property, plant and equipment | 301 | 226 | -1,365 | -1,285 |
| Goodwill | 0 | 0 | -1,286 | -953 |
| Intangible assets | 8 | 9 | -2,700 | -2,420 |
| Right-of-use assets | 0 | 34 | -5,851 | -5,392 |
| Inventories | 2,453 | 2,604 | -21 | -27 |
| Trade receivables (incl. other receivables) | 710 | 349 | -10 | -83 |
| Other assets | 511 | 18 | -324 | -383 |
| Non-current interest bearing loans | 0 | 0 | -195 | 0 |
| Lease liabilities | 5,973 | 5,565 | 0 | 0 |
| Provisions | 1,368 | 1,915 | -90 | -64 |
| Other liabilities | 1,722 | 1,416 | -2 | -260 |
| Contract liabilities | 879 | 828 | -21 | 0 |
| Total | 14,065 | 13,223 | -11,865 | -10,868 |
Deferred tax assets and liabilities totaling €8,852k (prior year: €8,619k) were offset in accordance with the offsetting rules in IAS 12. The deferred tax relating to goodwill results from tax amortization of goodwill recognized in an asset deal.
€-135k (prior year: €208k) in deferred taxes were recognized in other comprehensive income in the reporting year. The aggregate amount of deferred taxes recognized in other comprehensive income is consequently €1,295k (prior year: €1,430k).
The Group is not subject to global minimum taxation under the Pillar Two model rules as the thresholds have not been exceeded.
The following table shows the income and expenses recognized directly in other comprehensive income together with the related changes in deferred taxes:
| in €k | Dec 31, 2025 | Dec 31, 2024 | ||||
|---|---|---|---|---|---|---|
| Change before tax | Change in deferred taxes | Change after tax | Change before tax | Change in deferred taxes | Change after tax | |
| Adjustment item for currency translation of foreign subsidiaries | -3,968 | 0 | -3,968 | 1,855 | 0 | 1,855 |
| Exchange differences on net investments in subsidiaries | 0 | 0 | 0 | -195 | 0 | -195 |
| Changes in actuarial gains and losses | 480 | -146 | 333 | -667 | 212 | -455 |
| Change in share-based payment | 57 | 0 | 57 | -55 | 0 | -55 |
| Fair value of derivative financial instruments used for hedging purposes | -35 | 11 | -21 | 13 | -4 | 9 |
| Changes recognized in other comprehensive income (oci) | -3,467 | -135 | -3,602 | 951 | 208 | 1,159 |
17. Inventories
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| Raw materials, consumables and supplies, including merchandise | 30,851 | 29,139 |
| Work in progress | 23,515 | 20,476 |
| Finished goods | 4,374 | 5,129 |
| Prepayments | 556 | 321 |
| Total | 59,296 | 55,065 |
Write-downs on inventories were reversed in the amount of €975k in the reporting year (prior year: write-downs of €1,045k). The expense recognized in cost of sales amounted to €159,480k (prior year: €159,857k).
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Financial Statements // Notes
Further Information
- Tax receivables
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| Current tax receivables | 9,916 | 5,800 |
| Total | 9,916 | 5,800 |
The tax receivables are primarily claims against the German tax authorities based on deductible amounts of investment withholding tax and the German solidarity surcharge and on corporate income tax and trade tax.
- Trade and other receivables
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| Non-current trade receivables | 273 | 236 |
| Other non-current receivables | 2,106 | 2,046 |
| Current trade receivables | 75,879 | 76,327 |
| Other current receivables | 1,369 | 1,816 |
| Total | 79,627 | 80,424 |
The payment period usually granted for current trade receivables is 30 days. Non-current trade receivables relate to long-term payment arrangements with customers. Other receivables result from the agreement of payment plans for part of the trade receivables due to difficult financial situations at individual customers.
The gross carrying amounts of trade receivables total €84,561k (prior year: €85,323k). This includes €1,079k (prior year: €1,105k) in gross carrying amounts of credit-impaired trade and other receivables as of the reporting date, mainly relating to receivables more than 365 days past due.
The following tables contain information on the credit risk amounts included in trade receivables as of December 31, 2025 and December 31, 2024:
| December 31, 2025 | |||
|---|---|---|---|
| in €k | Expected credit loss rate (weighted average) | Gross carrying amount | Impairment |
| ≤ 30 days past due | 0.5% | 64,317 | 325 |
| 31-60 days past due | 2.1% | 4,582 | 97 |
| 61-120 days past due | 4.5% | 3,410 | 155 |
| 121-180 days past due | 9.6% | 2,536 | 243 |
| >180 days past due | 53.9% | 4,610 | 2,484 |
| Total | 79,455 | 3,304 | |
| December 31, 2024 | |||
| --- | --- | --- | --- |
| in €k | Expected credit loss rate (weighted average) | Gross carrying amount | Impairment |
| ≤ 30 days past due | 1.1% | 66,567 | 748 |
| 31-60 days past due | 1.8% | 4,229 | 75 |
| 61-120 days past due | 7.9% | 3,679 | 290 |
| 121-180 days past due | 21.3% | 1,324 | 282 |
| >180 days past due | 46.7% | 4,349 | 2,032 |
| Total | 80,148 | 3,427 |
Trade receivables more than one year past due were subject to value allowances amounting to €1,971k (prior year: €1,291k). Value allowances of €1,631k (prior year: €1,472k) were recognized on the gross carrying amount of other receivables not past due in the previous year in the amount of €5,106k (prior year: €5,175k).
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Financial Statements // Notes
Further Information
Impairments of trade and other receivables are as follows:
| in €k | 2025 | 2024 |
|---|---|---|
| As of January 1 | 4,899 | 3,810 |
| Change in impairment for credit losses recognized in profit or loss | 221 | 1,733 |
| Amounts written off as uncollectible in the fiscal year | -185 | -479 |
| Unused amount reversed | 0 | -164 |
| As of December 31 | 4,935 | 4,899 |
The total impairment value includes value allowances on other receivables amounting to €1,631k (prior year: €1,472k). The changes compared to the prior year result from the change in impairment for credit losses recognized in profit or loss and amount to €159k.
- Other assets
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| Other non-current financial assets | 389 | 416 |
| Other non-current non-financial assets | 602 | 576 |
| Other current financial assets | 748 | 1,385 |
| Other current non-financial assets | 3,483 | 2,844 |
| Total | 5,222 | 5,221 |
| of which non-financial prepaid expenses | 2,964 | 2,421 |
Other current financial assets mainly consist of creditors with debit balances and of security deposits. The deferred expenses included in current non-financial assets in the amount of €2,964k (prior year: €2,421k) relate to deferrals of prepaid maintenance fees and advance payments of insurance premiums.
- Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and bank balances, at banks with investment grade ratings, that have a term of up to three months from the date of acquisition.
tion. Bank balances bear variable interest in the case of sight deposits. There was no objective evidence of impairment for any cash and cash equivalents in the reporting year.
The carrying amount of the cash and cash equivalents is €17,544k (prior year: €19,512k) and approximates their fair value.
The cash flow statement shows how cash funds held by the WashTec Group changed in the reporting year. Cash flows are classified for this purpose in accordance with IAS 7 as cash flow from operating activities, cash flow from investing activities and cash flow from financing activities.
For the purposes of the consolidated cash flow statement, cash funds comprise the following as of the end of the year:
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| Cash and cash equivalents | 17,544 | 19,512 |
| Overdrafts | -44,000 | -38,998 |
| Cash funds | -26,455 | -19,486 |
For the purposes of the consolidated cash flow statement, lease liabilities changed as follows:
| in €k | 2025 | 2024 |
|---|---|---|
| As of January 1 | 21,834 | 19,439 |
| Repayment of lease liabilities | -10,249 | -9,019 |
| Assumption of lease liabilities | 11,419 | 11,753 |
| Disposal of lease liabilities | -167 | -414 |
| Adjustment item from currency translation | -206 | 76 |
| Other changes | ||
| Interest expense from discounting lease liabilities (presented as operating cash flow) | 754 | 685 |
| Interest paid | -754 | -685 |
| As of December 31 | 22,632 | 21,834 |
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WashTec
Management Report
Financial Statements // Notes
Further Information
The cash change in lease liabilities amounts to €11,003k (prior year: €9,704k); the non-cash change amounts to €11,800k (prior year: €12,100k).
For information regarding interest-bearing loans, see Note 28. For the interest expense from discounting lease liabilities, please see Note 10.
Equity
22. Subscribed capital
The subscribed capital of WashTec AG is €40,000k. It is divided into 13,976,970 (prior year: 13,976,970) no-par-value bearer shares and is fully paid up. Each share has one voting right and is eligible for dividends in proportion to its share of the share capital. For treasury shares held by WashTec, all rights are suspended until the shares are reissued.
| Dec 31, 2025 | Dec 31, 2024 | |
|---|---|---|
| Ordinary shares (thousand) | 13,977 | 13,977 |
| Share capital per share (€) | 2.86 | 2.86 |
As of December 31, 2025, the average weighted number of issued and outstanding shares was 13,379,578 (prior year: 13,382,324 shares).
The Annual General Meeting of May 13, 2025 resolved, among other things, for the distributable profit of €33,950,773.69 shown in the Company's annual financial statements for fiscal year 2024 to be appropriated for payment of a dividend of €2.40 per eligible no-par value share, totaling €32,117,577.60, and for the remaining distributable profit of €1,833,196.09 to be carried forward. The dividend was paid on May 16, 2025.
Authorized capital
By resolution of the Annual General Meeting of May 13, 2025, which is available in the Investor Relations section of the Company website at www.washtec.com, the Authorized Capital under subsection 5.1 of the Articles of Association resolved as agenda item 9 of the Annual General Meeting of April 16, 2022 was revoked. At the same time, the Management Board was authorized, subject to the consent of the Supervisory Board, to increase the registered share capital on one or more occasions on or before June 30, 2028 by a total amount of up to €8,000,000 (Authorized Capital) by issuing new no-par-value bearer shares in exchange for cash and/or non-cash contributions. The shareholders must be granted preemptive rights in this connection unless otherwise stipulated.
The Management Board is authorized, subject to the consent of the Supervisory Board, to exclude the preemptive rights of shareholders:
- for fractional amounts;
- if the new shares are issued in exchange for a non-cash contribution, including in connection with the acquisition of companies, parts of companies or interests in companies;
- in the event of capital increases in exchange for cash contributions if at the time of the final fixing of the issue price by the Management Board the issue price of the new shares is not significantly lower, within the meaning of section 203 (1) and (2) and section 186 (3) sentence 4 AktG, than the stock market price of existing publicly listed shares of the same class and with the same features, and the pro rata amount of the share capital attributable in total to the new shares on which preemptive rights are excluded does not exceed 10% at the time the authorization becomes effective or, if the pro rata amount is then lower, at the time the authorization is exercised.
- to the extent necessary in order to grant the holders of warrant-linked and/or convertible bonds issued by the Company or its subsidiaries a right to subscribe for new shares in the scope to which they would be entitled if they exercised their warrant or conversion right or fulfilled their conversion or warrant obligations.
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Financial Statements // Notes
Further Information
The pro rata amount of the share capital attributable to shares issued against cash or non-cash contributions under this authorization with shareholders' preemptive rights excluded (with the exception, however, of shares issued with preemptive rights excluded for fractional amounts under the above stipulations) may not exceed a total of 10% of the Company's share capital at the time of the resolution by the Annual General Meeting.
To be deducted from this amount – subject to any further authorization to exclude shareholders' preemptive rights that may be resolved by a subsequent Annual General Meeting – are those shares which are issued during the term of the Authorized Capital under another authorization with shareholders' preemptive rights excluded or to which warrant-linked or convertible bonds with conversion or warrant rights or with conversion or warrant obligations relate that are issued during the term of the Authorized Capital with shareholders' preemptive rights excluded.
The Management Board is authorized, subject to the consent of the Supervisory Board, to stipulate further details concerning the capital increase and its implementation, including the features of the share rights and the terms and conditions of issue.
The Supervisory Board is authorized to revise the text of the Articles of Association after full or partial implementation of the capital increase from Authorized Capital.
23. Capital reserves
Capital reserves primarily consist of the contribution of California Kleindienst Holding GmbH to the capital of WashTec AG as of January 1, 2000 in the amount of €26,828k, and €18,019k, less €1,774k in costs relating to capital increases, from the premium paid in connection with the capital increase in August 2005. In 2009, capital reserves were reduced by €9,464k due to the retirement of treasury shares.
24. Treasury shares
| Shares in units | Value shares in €k | |
|---|---|---|
| As of January 1 | 594,646 | 13,177 |
| Addition 2025 | 33,163 | 1,508 |
| As of December 31 | 627,809 | 14,685 |
By resolution of the Annual General Meeting of May 13, 2025, the Company is authorized to acquire, on or before June 30, 2028 and for purposes other than to trade in the Company's own shares, the Company's own shares in the amount of up to 10% of the share capital of €40,000k at the time of the resolution.
On the basis of that resolution, the Management Board of WashTec AG, with the Supervisory Board's approval, has decided to launch a share buyback program. This will run from November 6, 2025 to May 4, 2026 and has a maximum volume of €5,000k or 100,000 shares. The repurchased shares may be used for all purposes approved by the Annual General Meeting.
In the fiscal year under review, the Company acquired 33,163 shares with a value of €1,508k. This included transaction costs of €5k. Together with the treasury shares acquired in fiscal years 2012, 2013 and 2015, WashTec AG held treasury shares in the amount of €14,685k as of December 31, 2025 (prior year: €13,177k). This corresponds to 627,809 shares (prior year: 594,646 shares) or 4.49% (prior year: 4.25%). This reduced the number of shares in circulation to 13,349,161 shares (prior year: 13,382,324 shares).
Purchase and use of treasury shares
Unless expressly permitted by law, the Company cannot acquire or make use of treasury shares except with authorization from the Annual General Meeting. It was resolved at the Annual General Meeting of May 13, 2025 to revoke the prior authorization and to grant the Company renewed authorization to purchase and make use of treasury shares. The resolution of the Annual General Meeting is available in the Investor Relations section of the Company website at www.washtec.com.
WashTec Management Report Financial Statements // Notes Further Information
Authorization to acquire treasury shares
The Company has been authorized pursuant to Section 71 (1) 8 AktG, on or before June 30, 2028 and for purposes other than to trade in the Company's own shares, to acquire the Company's own shares in the amount of up to 10% of the share capital at the time of the resolution or – if lower – at the time this authorization is exercised. The shares acquired on the basis of this authorization, together with other shares in the Company that the Company has previously acquired and still holds or that are attributable to it under Sections 71d and 71e AktG, may at no time account for more than 10% of the share capital at the time.
The Management Board may opt to acquire such shares on the stock exchange, by means of a public purchase offer or by means of a public invitation directed at the shareholders of the Company to tender shares for sale.
If the shares are acquired on the stock exchange, the consideration per share paid by the Company (excluding incidental acquisition costs) may not be more than 10% higher or lower than the average stock exchange price of the Company's shares in the XETRA closing auction (or a comparable successor system) on Frankfurt Stock Exchange over the last five trading days prior to the acquisition of the shares.
If the shares are acquired by means of a public purchase offer or by means of a public invitation directed at the shareholders of the Company to tender shares for sale, the purchase price offered or the limits of the purchase price range per share (excluding incidental acquisition costs) may not be more than 10% higher or lower than the average stock exchange price of the Company's shares in the XETRA closing auction (or a comparable successor system) on Frankfurt Stock Exchange over the last five trading days prior to the date of the public announcement of the offer or of the public invitation to tender shares for sale.
If the public offer is oversubscribed, or if not all of a plurality of equivalent offers are accepted in the case of an invitation to tender shares for sale, the acquisition may be made, with the corresponding partial exclusion of any right to tender, in proportion to the shares tendered instead of in proportion to the tendering shareholders' shareholding in the Company. Provision may also be made for preferential acquisition or preferential acceptance of small quantities of up to 100 shares in the Company offered for acquisition per shareholder. Additional conditions may be stipulated in the public offer or in the invitation to tender shares.
Use of treasury shares; exclusion of shareholders' preemptive rights
Other than by way of sale on the stock exchange or by way of an offer to all shareholders, the Management Board is authorized, subject to the consent of the Supervisory Board, to make use of treasury shares acquired on the basis of the authorization granted at the Annual General Meeting on May 13, 2025 or on the basis of a previously granted authorization as follows:
- They may be offered and transferred to third parties as consideration in connection with the direct or indirect acquisition of companies, parts of companies or interests in companies or in connection with business combinations;
- They may be used to service options issued in a stock option program to members of the management of companies affiliated with the Company and to employees of the Company or of companies affiliated with the Company; or
- They may be issued against cash payment if the issue price is not significantly lower than the stock exchange price of shares in the Company at the time of disposal. This authorization is additionally restricted to shares with a pro rata amount of the share capital that may not exceed a total of 10% of the share capital at the time this authorization becomes effective or, if lower, at the time this authorization is exercised.
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The Supervisory Board has been authorized to use the treasury shares acquired on the basis of this authorization, or on the basis of a previously granted authorization in accordance with Section 71 (1) no. 8 AktG, to service options issued in a stock option program to members of the Management Board of the Company.
The aforementioned authorizations for use other than by way of sale on the stock exchange or by way of an offer to all shareholders may be exercised in whole or in part and on one or more occasions. The use made may be for one or more of the aforementioned purposes. Shareholders' preemptive rights to treasury shares are excluded to the extent that, in accordance with the above authorizations, the shares are used other than by way of sale on the stock exchange or by way of an offer to all shareholders. In addition, preemptive rights may be excluded for fractional amounts in the case of an offer to all shareholders for the acquisition of treasury shares.
To the extent that shares are used, with shareholders' preemptive rights excluded, to service options issued in a stock option program to members of the Management Board of the Company, to members of the management of companies affiliated with the Company and to employees of the Company or of companies affiliated with the Company, use may only be made of the authorization up to a total maximum amount of 5% of the share capital at the time of the resolution by the Annual General Meeting. To be deducted from this 5% limit is the pro rata share of the share capital attributable to shares issued or sold in exchange for cash or non-cash contributions during the term of the authorization or under another authorization, with shareholders' preemptive rights excluded, to members of the Management Board of the Company, to members of the management of companies affiliated with the Company and to employees of the Company or of companies affiliated with the Company.
The treasury shares may be transferred to a credit institution or to another enterprise meeting the requirements of Section 186 (5) sentence 1 AktG provided that it accepts the shares with the obligation to sell them on the stock exchange, to offer them to shareholders for purchase or to use them to fulfill a tender offer made to all shareholders or to fulfill the aforementioned purposes.
Cancellation of treasury shares
The Management Board has been authorized, subject to the consent of the Supervisory Board, to cancel treasury shares acquired on the basis of the above authorization or a previously granted authorization, in whole or in part, without the cancellation or its execution requiring a further resolution of the Annual General Meeting. Cancellation results in a reduction in capital. In departure from this, the Management Board may stipulate that instead of a reduction in capital, the pro rata share of the share capital attributable to each remaining share is increased. In this event, the Management Board is authorized to revise the number of shares in the Company's Articles of Association.
Utilization of authorizations, utilization in partial amounts
All of the aforementioned authorizations may be exercised by the Company independently of each other, individually or jointly, in whole or in part, on one or more occasions, and for one or more purposes. The authorizations – with the exception of the authorization to cancel treasury shares – may also be exercised by subsidiaries of the Company or by third parties for the account of the Company or for the account of subsidiaries of the Company. The authorizations for the use of treasury shares, for the exclusion of subscription rights and for the cancellation of treasury shares also include the use of shares in the Company acquired on the basis of section 71d sentence 5 AktG.
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- Other reserves and currency translation effects
| in €k | Jan 1, 2025 | Change in income and expenses recognized in other comprehensive income | Change in deferred taxes recognized in other comprehensive income | Change in share-based payments | Dec 31, 2025 |
|---|---|---|---|---|---|
| Exchange differences on net investments in subsidiaries | -1,750 | 0 | 0 | 0 | -1,750 |
| Actuarial gains/losses | -3,041 | 480 | -146 | 0 | -2,708 |
| Share-based payment | 52 | 0 | 0 | 58 | 110 |
| Fair value of derivative financial instruments used for hedging purposes | 3 | -35 | 11 | 0 | -21 |
| Other reserves | -4,737 | 444 | -135 | 58 | -4,370 |
| Currency translation effects | 2,060 | -3,968 | 0 | 0 | -1,908 |
| Total | -2,677 | -3,524 | -135 | 58 | -6,278 |
| in €k | Jan 1, 2024 | Change in income and expenses recognized in other comprehensive income | Change in deferred taxes recognized in other comprehensive income | Change in share-based payments | Dec 31, 2024 |
| --- | --- | --- | --- | --- | --- |
| Exchange differences on net investments in subsidiaries | -1,555 | -195 | 0 | 0 | -1,750 |
| Actuarial gains/losses | -2,587 | -667 | 212 | 0 | -3,041 |
| Share-based payment | 107 | 0 | 0 | -55 | 52 |
| Fair value of derivative financial instruments used for hedging purposes | -6 | 13 | -4 | 0 | 3 |
| Other reserves | -4,041 | -849 | 208 | -55 | -4,737 |
| Currency translation effects | 207 | 1,853 | 0 | 0 | 2,060 |
| Total | -3,834 | 1,004 | 208 | -55 | -2,677 |
Please refer to Notes 26, 32 and 37 for further information on the items shown.
26. Provisions for pensions
The provisions relate mainly to WashTec Cleaning Technology GmbH and WashTec Holding GmbH, Augsburg, Germany, and have been recognized in order to reflect obligations, arising from future and current benefit entitlements, to current and former employees and their surviving dependents. The pension plan provides for retirement benefits (from the age of 63), early retirement benefits and invalidity benefits. Employees must have served the Company for at least 10 years in order to be entitled to the benefits, with years of service taken into account only after an employee has reached the age of 30. The monthly retirement benefits are calculated by multiplying a fixed amount by the number of qualifying years of service. There are also individual contractual arrangements.
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The amount of the provision was determined using actuarial methods at a discount rate of 3.28% (prior year: 2.90%). The annual salary and cost-of-living increases were measured at 2.0% (prior year: 2.0%). The anticipated return from reimbursement claims due to the existing liability insurance policies amounts to 3.28% (prior year: 2.90%). The Prof. Dr. Klaus Heubeck 2018 G mortality tables were used as the biometrical basis of calculation. The probable rate of employee turnover was estimated on an age and gender-specific basis.
The number of pension beneficiaries as of December 31, 2025 was 216 employees (prior year: 209 employees). The total number of persons to whom there is a pension commitment and who are not yet beneficiaries is 208 employees (prior year: 281 employees). The new valuations include the effects of experience adjustments in the amount of €279k (prior year: €-431k).
All actuarial gains and losses have been recognized in other comprehensive income. Actuarial gains and losses of €480k (prior year: €-668k) before deferred taxes were recognized in other reserves in the fiscal year under review. In total, actuarial gains and losses of €-4,054k (prior year: €-4,534k) have been recognized in other comprehensive income as of December 31, 2025.
The present value of the defined benefit obligation developed as follows in fiscal years 2024 and 2025:
| in €k | 2025 | 2024 |
|---|---|---|
| As of January 1 | 8,564 | 8,113 |
| Pensions paid | -661 | -635 |
| Service cost for the reporting period | 173 | 158 |
| Interest expense | 229 | 260 |
| Actuarial gains and losses | -480 | 668 |
| Disposals | -335 | 0 |
| As of December 31 | 7,490 | 8,564 |
Details of the change in actuarial gains and losses:
| in €k | Provisions for pensions at present value | Reimbursement rights at fair value | Total |
|---|---|---|---|
| Gains and losses from changes in demographic assumptions | 0 | -9 | -9 |
| Gains and losses from changes in financial assumptions | -213 | 0 | -213 |
| Gains and losses from portfolio changes | -259 | 0 | -259 |
| Total | -471 | -9 | -480 |
The claims against the relief fund and the pension liability insurance taken out on the lives of the beneficiary employees are of a reimbursement nature.
Pension obligations are covered exclusively by pension liability insurance. There is no investment in real estate, equities or similar. The development of reimbursement rights is shown in the following table:
| in €k | 2025 | 2024 |
|---|---|---|
| Fair value of reimbursement rights as of January 1 | 577 | 557 |
| Expected return | 26 | 20 |
| Fair value of reimbursement rights as of December 31 | 603 | 577 |
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Sensitivity analysis for pension obligations in accordance with IAS 19
Risks under pension obligations mostly arise from an increase in the life expectancy of pension beneficiaries and changes in the discount rate, which lead to a change in the pension provision.
The following table shows the sensitivities (calculated on the basis of the projected unit credit method) in relation to current assumptions regarding potential changes in discount rates, cost-of-living increases and life expectancy. All other variables are held constant. The assumptions and methods used in the sensitivity analysis have not changed compared to the prior year.
| Effect on the defined benefit obligation (DBO) | |||
|---|---|---|---|
| Assumptions | Changes | 2025 | 2024 |
| Life expectancy | Increase by one year | 5.7% | 5.6% |
| Increase in living costs | Increase by 0.25% | 1.5% | 1.4% |
| Interest rate | Increase by 0.25% | -1.8% | -1.8% |
| Interest rate | Decrease by 0.25% | 1.9% | 1.9% |
The average remaining duration of the pension obligations is approximately 7 years (prior year: approximately 8 years).
The table below shows the expected payments for pension benefits:
| in €k | < 1 year | 1-5 years | > 5 years | Total |
|---|---|---|---|---|
| Pension benefits | 655 | 2,612 | 6,501 | 9,768 |
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- Other provisions
| in €k | Jan 1, 2025 | Additions | Utilization | Reversals | Interest effects | Exchange rate effects | Dec 31, 2025 | of which current | of which non-current | Provisions Dec 31, 2024 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| of which current | of which non-current | |||||||||||
| Partial retirement | 2,227 | 795 | -989 | 0 | 0 | 0 | 2,033 | 826 | 1,207 | 990 | 1,237 | |
| Warranty | 6,511 | 5,204 | -4,737 | -918 | 0 | -63 | 5,998 | 5,976 | 21 | 6,429 | 82 | |
| Contracts with rights of return | 706 | 0 | -423 | 0 | 5 | 0 | 288 | 288 | 0 | 418 | 288 | |
| Legal and consulting fees | 1,073 | 370 | -176 | -543 | 0 | -1 | 723 | 723 | 0 | 1,073 | 0 | |
| Termination benefits | 1,321 | 334 | -499 | -113 | 0 | 1 | 1,044 | 1,044 | 0 | 1,321 | 0 | |
| Other | 660 | 125 | -54 | -275 | 0 | 0 | 456 | 35 | 421 | 244 | 416 | |
| Total | Dec 31, 2025 | 12,498 | 6,829 | -6,879 | -1,849 | 5 | -63 | 10,541 | 8,892 | 1,649 | - | - |
| Dec 31, 2024 | 14,312 | 7,186 | -7,157 | -1,852 | 0 | 9 | 12,498 | - | - | 10,474 | 2,024 |
The provision for partial retirement was measured in accordance with IAS 19 (revised). The calculation was based on an interest rate of 2.40% (prior year: 2.70%) and annual salary increases of 2.25% (prior year: 2.25%).
The provision for warranty obligations is recognized based on experience. The assumptions used in calculating the provision for warranty obligations are based on current sales levels and currently available information on repairs and returns of sold products during the warranty period. It is expected that these costs will be incurred during the warranty period after the reporting date.
The provision for contracts with rights of return comprises the expected expenses from contractual obligations to take back equipment previously sold to leasing companies. The contract on which this obligation is based expired in 2021. The amounts currently recognized in the provision mainly relate to the ongoing execution of the transactions entered into. In general, these obligations are secured by bank guarantees.
The provisions for legal and consultancy fees mainly relate to outstanding legal disputes and outstanding expenses from consulting agreements.
The provision for termination benefits relates to measures for workforce reductions.
The other provisions totaling €456k (prior year: €660k) mainly relate to provisions for potential claims in the amount of €421k (prior year: €416k).
- Interest-bearing loans
The WashTec Groups financing is based on bilateral agreements with various banks. The borrower is WashTec Cleaning Technology GmbH and has credit lines totaling €97,357k (prior year: €99,253k) at its disposal, consisting of demand facilities totaling €60,000k (prior year: €60,000k) and facilities with remaining terms as of December 31, 2025 of 15 to 27 months totaling €37,357k (prior year: €39,253k). The credit lines may be drawn on both as credit and as guarantee facilities; guarantee facility drawings amounted to €3,035k (prior year: €13,898k). The undrawn amount of the credit line available for future operating activities and to meet obligations was €47,237k as of the reporting date (prior year: €41,424k).
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Interest-bearing loans at the WashTec Group are made up as follows:
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| Non-current interest-bearing loans | 1,809 | 3,489 |
| Current interest-bearing loans | 45,276 | 40,442 |
| Total | 47,085 | 43,931 |
All loans have variable interest rates. The short-term interest-bearing loans are made up of overdraft borrowings in the amount of €44,000k (prior year: €38,998k) and interest-bearing loans in the amount of €1,277k (prior year: €1,444k).
The bank loans are not tied to any financial covenants. The interest rate on the credit lines is variable and linked to changes in EURIBOR, €STR and SOFR plus a contractually agreed margin between 0.9% and 1.6% (prior year: 0.9% and 1.5%). There were also commitment fees of between 0.3% and 0.5% (prior year: 0.3% and 0.5%). The interest rate on the credit lines when drawn is determined by the current terms and conditions of the banks concerned. The interest rates ranged between 2.7% and 5.3% in the reporting year (prior year: between 3.8% and 5.1%).
- Leases
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| Current lease-liabilities | 10,011 | 9,061 |
| Non-current lease liabilities | 12,621 | 12,773 |
| Total | 22,632 | 21,834 |
To obtain a low fixed cost base, some leases for Group locations feature variable lease payments that rise incrementally on attainment of a specified volume of carwashes or revenue. The lease payments are recognized in profit or loss in the period in which the
condition that triggers them occurs. As in the prior year, there are no future cash outflows that are not reflected in the measurement of lease liabilities as of December 31, 2025.
A number of property leases contain extension and termination options. No lease payments related to these as the optional periods are in the future. Potential future cash outflows in the amount of €874k (prior year: €860k) were not included in the lease liabilities as the leases are not reasonably certain to be extended.
Total cash outflows for leases were €11,003k in fiscal year 2025 (prior year: €9,704k). Future cash outflows arising from leases not yet commenced to which the WashTec Group committed in fiscal year 2025 amount to €150k (prior year: €130k).
The other rental expenses include €319k (prior year: €307k) in expenses for leases of low-value assets that are not short-term leases. Low-value assets mainly comprise IT equipment. As in the prior year, no expenses were recognized for variable lease payments not taken into account in the measurement of lease liabilities.
For the right-of-use assets recognized for leased assets and the related depreciation, please see Note 15. For the interest expense from discounting lease liabilities, please see Note 10.
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- Other liabilities
| in €k | Non-current (>1 year) | Current (<1 year) | ||
|---|---|---|---|---|
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | |
| Accrued liabilities | 0 | 0 | 12,481 | 12,738 |
| Liabilities to trading partners | 0 | 0 | 5,187 | 4,965 |
| Debtors with credit balances | 0 | 0 | 1,581 | 1,497 |
| Other | 41 | 225 | 1,354 | 821 |
| Total other financial liabilities | 41 | 225 | 20,603 | 20,021 |
| Liabilities to employees and board members | 1,392 | 503 | 16,485 | 15,544 |
| Taxes and levies | 0 | 0 | 6,116 | 6,947 |
| Liabilities for social security | 0 | 0 | 1,785 | 1,415 |
| Other | 159 | 0 | 1,464 | 1,543 |
| Total other non-financial liabilities | 1,551 | 503 | 25,851 | 25,449 |
| Total | 1,592 | 728 | 46,453 | 45,469 |
The accrued liabilities in the amount of €12,481k (prior year: €12,738k) mainly relate to outstanding invoices for service already received and for credit notes yet to be issued. The taxes and levies mainly relate to value added tax yet to be remitted.
Other non-current financial liabilities include interest rate swaps at fair value in the amount of €31k as of December 31, 2025 (prior year: other non-current financial assets in the amount of €4k).
- Contract liabilities
In fiscal year 2025, the Group adjusted the balance sheet presentation of contract liabilities. The previous "contract liabilities" items has been divided into "contract liabilities from prepayments" and "other contract liabilities."
This change serves to improve transparency and clarity with regard to this item. The reclassification solely affects the balance sheet presentation and does not affect the total amount of contract liabilities or the Company's earnings.
The reclassified items relate to the following amounts as of December 31, 2024:
| Original presentation | Amount (in €k) | New presentation | Amount (in €k) |
|---|---|---|---|
| Current contract liabilities | 30,395 | Current contract liabilities from prepayments | 21,895 |
| Other current contract liabilities | 8,500 |
Liabilities relating to contracts with customers:
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| Contract liabilities from prepayments | 21,720 | 21,895 |
| Other contract liabilities | 9,923 | 9,633 |
| Total | 31,643 | 31,528 |
| of which long-term | 1,061 | 1,134 |
| of which short-term | 30,582 | 30,394 |
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Management expects that 96.6% (prior year: 96.4%) of these unsatisfied (or partially unsatisfied) performance obligations will be recognized as revenue in fiscal year 2026. The remaining 3.4% (prior year: 3.6%) are expected to be recognized as revenue in fiscal year 2027. The amount stated does not include any variable compensation components that are constrained.
Revenue recognition in relation to contract liabilities:
| in €k | 2025 | 2024 |
|---|---|---|
| Revenue recognized in the fiscal year included in the balance of contract liabilities at the beginning of the period | ||
| Current contract liabilities from prepayments | 21,895 | 19,584 |
| Other current contract liabilities | 8,500 | 8,215 |
32. Financial risk management objectives and methods
The risks for the Group arising from derivative financial instruments comprise credit and liquidity risk along with market price risk in the form of interest and currency risk. Company policy is to avoid or limit such risk as far as possible. Substantially all hedging is coordinated and undertaken centrally. For example, the Group regularly identifies all items that are subject to interest rate and currency risk, assesses the probability of occurrence of negative developments and makes any decisions required to avoid or reduce variation in the corresponding interest rate and/or currency positions. No trading in derivatives is undertaken as a fundamental rule in accordance with internal Group policy.
All risk types to which the Group is exposed, and the strategies and procedures for managing the risks, are described below.
Credit risk
The Group conducts business exclusively with creditworthy third parties. To minimize credit risk, order limits are imposed in cases where customers do not have first-class credit standing. For new regional customers, the Company requests evidence of credit standing or financing. Impairments recognized on receivables are expected to be sufficient to cover actual risk. Please see Note 19 for further information.
There is presumed to be a concentration of credit risk if a single customer or oil company makes up more than 10% of revenue. There were no instances in which revenue from transactions with any major customer exceeded 10% of consolidated revenue in fiscal year 2025. There is therefore no material credit risk concentration within the Group. The development of receivables is monitored on a monthly basis as part of receivables management. If there are indications of an increase in credit risk, insolvency insurance may be taken out with reputable credit insurers. There is no enhanced credit risk in this regard.
For all of the Group's financial assets, the maximum credit risk in the event of a default by a counterparty is the carrying amount of the instruments. No credit losses are expected on such instruments.
Liquidity risk
A key business objective is to ensure that Group companies are solvent at all times. The implemented cash management systems enable the Group to identify potential shortfalls in good time and take appropriate action. The current and future liquidity situation is controlled in a timely manner on an annual basis, based on a monthly rolling consolidated liquidity plan and a short and medium-term plan. Unutilized credit lines ensure the supply of liquidity. The credit lines have been granted under bilateral agreements between WashTec Cleaning Technology GmbH and various banks subject to joint and several liability on the part of WashTec AG. Further information is provided in Note 28.
The table below shows all contractually agreed undiscounted payments of principal and interest on financial liabilities recognized as of December 31, 2025 for future fiscal years.
The table includes all instruments held as of the balance sheet date for which payments were already agreed. Foreign currency amounts are translated at closing rates. Variable interest payments on the financial instruments, primarily on loans, are calculated at ex
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pected interest rates. Financial liabilities that are repayable at any time are always included in the earliest repayment category.
| in €k | Carrying amount | Cash flows | ||
|---|---|---|---|---|
| Dec 31, 2025 | 2026 | 2027–2030 | 2031 ff. | |
| Interest-bearing loans | 47,085 | 27,675 | 21,488 | 0 |
| Lease liabilities | 22,632 | 10,616 | 13,063 | 0 |
| Trade payables | 24,699 | 24,699 | 0 | 0 |
| Other financial liabilities | 20,643 | 20,602 | 41 | 0 |
| in €k | Carrying amount | Cash flows | ||
| --- | --- | --- | --- | --- |
| Dec 31, 2024 | 2025 | 2026–2029 | 2030 ff. | |
| Interest-bearing loans | 43,931 | 34,102 | 11,561 | 0 |
| Lease liabilities | 21,834 | 9,719 | 13,320 | 77 |
| Trade payables | 19,577 | 19,577 | 0 | 0 |
| Other financial liabilities | 20,247 | 20,006 | 225 | 0 |
Market price risk
The main sources of market price risk facing the Group relate to exchange rate movements between the euro and other currencies and to interest rate movements on the international money and capital markets.
Currency risk
The operational risk arising from individual transactions in foreign currencies is immaterial to the Group due to the small volume of such transactions.
Interest rate risk
Interest rate hedging
Interest rate risk in the Group is primarily connected with the drawn interest-bearing loans as the variable base interest rate for the credit lines is based on EURIBOR, €STR and SOFR.
At the inception of a hedging relationship, both the hedging relationship and the Group's risk management objectives and strategies with regard to the hedge are formally designated and documented. The documentation includes the identification of the hedging instrument, the hedged item, the nature of the hedged risk and how the entity assesses whether the hedging relationship meets the hedge effectiveness requirements (including an analysis of the possible reasons for any hedge ineffectiveness and how the hedge ratio is determined). In accordance with Group policy, there is no trading in derivatives for speculative purposes.
To hedge these interest rate exposures, derivative financial instruments in the form of interest rate swaps were held for hedging purposes during the reporting year. Credit risk relating to the counterparties to the interest rate derivatives could result in hedge ineffectiveness. As of December 31, 2025, no ineffectiveness was identified and the hedging relationships are classified as effective. Effectiveness is determined on the basis of the critical terms match, where loans and swaps are congruent in lifetime, interest period, currency, loan repayment and nominal loan amount.
Hedging instruments as of December 31, 2025 comprised two interest rate swaps, which serve to hedge the loan for the acquisition of the site occupied by the American subsidiary.
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| Start | End | Nominal amount in USDk | Reference rate | Interest rate (%) | Hedge relationship | Hedge ratio (%) |
|---|---|---|---|---|---|---|
| Jan 3, 2023 | Dec 31, 2027 | 2,400 | SOFR | 4.15 | 1:1 | 100 |
| Jan 3, 2023 | Dec 31, 2027 | 1,225 | SOFR | 4.11 | 1:1 | 100 |
The cash flow hedge reserve is recognized in other reserves and changed as follows in the fiscal year:
| in €k | 2025 | 2024 |
|---|---|---|
| As of January 1 | 3 | -6 |
| Change in fair value of hedging instruments recognized in other comprehensive income (OCI) | -15 | 38 |
| Reclassified from other comprehensive income (OCI) to profit or loss (financial result) | -20 | -25 |
| Deferred taxes | 11 | -4 |
| As of December 31 | -21 | 3 |
Impact of changes in interest rates
The following table shows the sensitivity of consolidated earnings before taxes to a reasonably possible change in the interest rate on the variable-rate loans. All other variables are held constant.
| 2025 | 2024 | |||
|---|---|---|---|---|
| Increase/decrease in basis points | 100 | -100 | 100 | -100 |
| Impact on EBT in €k | -499 | 499 | -476 | 476 |
| Impact on other comprehensive income (OCI) in €k | 7 | -70 | 86 | -81 |
Capital management
The Group's capital management activities are primarily directed at maintaining a high credit rating and a good equity ratio in order to support operations and maximize shareholder value. The Group manages its capital structure and makes adjustments in response to changes in economic conditions. The Group monitors its capital using appropriate financial ratios. Net financial debt comprises cash and cash equivalents less interest-bearing loans and lease liabilities. At the end of 2025, net financial debt amounted to €52,172k (prior year: €46,253k). The bank loans are not tied to any financial covenants.
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33. Financial instruments
The table below shows the carrying amounts, measurement and fair values of relevant balance sheet items by measurement category.
| in €k | IFRS 9 category | Carrying amount Dec 31, 2025 | Measurement under IFRS 9 | Measurement under IFRS 16 | Fair value Dec 31, 2025** | IFRS 13 level | ||
|---|---|---|---|---|---|---|---|---|
| Amortized cost | At fair value through other comprehensive income | At fair value through profit or loss | ||||||
| Assets | ||||||||
| Non-current trade receivables | AC* | 273 | 273 | - | - | - | 273 | 2 |
| Other non-current receivables | AC* | 2,106 | 2,106 | - | - | - | 2,106 | 2 |
| Other non-current financial assets | AC* | 389 | 389 | - | - | - | 389 | - |
| Current trade receivables | AC* | 75,879 | 75,879 | - | - | - | - | - |
| Other current receivables | AC* | 1,369 | 1,369 | - | - | - | - | - |
| Other current financial assets | AC* | 748 | 748 | - | - | - | - | - |
| Cash and cash equivalents | AC* | 17,544 | 17,544 | - | - | - | - | - |
| Equity and liabilities | ||||||||
| Non-current interest-bearing loans | FLAC* | 1,809 | 1,809 | - | - | - | 1,735 | 2 |
| Non-current lease liabilities | n/a | 12,621 | - | - | - | 12,621 | - | - |
| Other non-current financial liabilities | FLAC* | 9 | 9 | - | - | - | 9 | 2 |
| Non-current derivative financial liabilities | n/a | 31 | - | 31 | 31 | 2 | ||
| Current interest-bearing loans | FLAC* | 45,276 | 45,276 | - | - | - | - | - |
| Current lease liabilities | n/a | 10,011 | - | - | - | 10,011 | - | - |
| Trade payables | FLAC* | 24,699 | 24,699 | - | - | - | - | - |
| Other current financial liabilities | FLAC* | 20,602 | 20,602 | - | - | - | - | - |
| Aggregated presentation by measurement category in accordance with IFRS 9 | ||||||||
| Financial assets measured at amortized cost | AC* | 98,309 | 98,309 | - | - | - | 2,768 | - |
| Financial liabilities measured at amortized cost | FLAC* | 92,395 | 92,395 | - | - | - | 1,744 | - |
- AC: financial assets at amortized cost; FLAC: financial liabilities at amortized cost
** For current financial instruments at amortized cost, the carrying amount at the reporting date is assumed to approximate fair value.
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| in €k | IFRS 9 category | Carrying amount Dec 31, 2024 | Measurement under IFRS 9 | Measurement under IFRS 16 | Fair value Dec 31, 2024** | IFRS 13 level | ||
|---|---|---|---|---|---|---|---|---|
| Amortized cost | At fair value through other comprehensive income | At fair value through profit or loss | ||||||
| Assets | ||||||||
| Non-current trade receivables | AC* | 236 | 236 | - | - | - | 236 | 2 |
| Other non-current receivables | AC* | 2,046 | 2,046 | - | - | - | 2,046 | 2 |
| Other non-current financial assets | AC* | 412 | 412 | - | - | - | 412 | - |
| Non-current derivative financial assets | n/a | 4 | - | 4 | - | - | 4 | 2 |
| Current trade receivables | AC* | 76,327 | 76,327 | - | - | - | - | - |
| Other current receivables | AC* | 1,816 | 1,816 | - | - | - | - | - |
| Other current financial assets | AC* | 1,385 | 1,385 | - | - | - | - | - |
| Cash and cash equivalents | AC* | 19,512 | 19,512 | - | - | - | - | - |
| Equity and liabilities | ||||||||
| Non-current interest-bearing loans | FLAC* | 3,489 | 3,489 | - | - | - | 3,315 | 2 |
| Non-current lease liabilities | n/a | 12,773 | - | - | - | 12,773 | - | - |
| Other non-current financial liabilities | FLAC* | 225 | 225 | - | - | - | 225 | 2 |
| Current interest-bearing loans | FLAC* | 40,442 | 40,442 | - | - | - | - | - |
| Current lease liabilities | n/a | 9,061 | - | - | - | 9,061 | - | - |
| Trade payables | FLAC* | 19,577 | 19,577 | - | - | - | - | - |
| Other current financial liabilities | FLAC* | 20,021 | 20,021 | - | - | - | - | - |
| Aggregated presentation by measurement category in accordance with IFRS 9 | ||||||||
| Financial assets measured at amortized cost | AC* | 101,734 | 101,734 | - | - | - | 2,693 | - |
| Financial liabilities measured at amortized cost | FLAC* | 83,755 | 83,755 | - | - | - | 3,541 | - |
*AC: financial assets at amortized cost; FLAC: financial liabilities at amortized cost
** For current financial instruments at amortized cost, the carrying amount at the reporting date is assumed to approximate fair value.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. If there is no active market, fair value is established using valuation techniques.
In the IFRS 13 fair value hierarchy, financial instruments are classified into three levels on the basis of the input factors used. Level 1 input factors have the highest priority and unobservable inputs the lowest. The three levels are explained in the following.
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Level 1: The fair value of financial instruments traded in active markets (such as listed derivatives and equity instruments) is based on quoted market prices at the end of the reporting period. The quoted market price of financial assets held by the Group is the current bid price. These instruments are classified in level 1.
Level 2: The fair value of financial instruments not traded in an active market (such as OTC derivatives) is determined using valuation techniques that maximize the use of observable market data and minimize the use of company-specific estimates. If all significant inputs for measurement of an instrument at fair value are observable, the instrument is classified in level 2. The derivative financial liabilities (prior year: derivative financial assets) in Level 2 include interest rate swaps, which are measured at the fair value of the estimated future cash flows based on observable yield curves. The fair value of non-current assets and liabilities takes into account the present value of the expected payments, discounted using a risk-adjusted discount rate.
Level 3: If one or more of the significant inputs are not observable, the instrument is classified in Level 3.
There were no reclassifications of recurring fair value measurements between the individual levels during the fiscal year. Reclassifications into and out of levels in the fair value hierarchy are made at the end of the reporting period.
Due to their short terms, the fair values of current trade receivables, trade payables and cash and cash equivalents as well as other financial assets, other financial liabilities and interest-bearing loans generally match their carrying amounts. The fair value of non-current trade receivables and lease liabilities is determined by discounting the expected future cash flows at current market interest rates. The fair value of long-term interest-bearing loans is based on the discounted cash flows using the current market interest rate for such loans.
There are derivative financial instruments in the form of long-term interest rate swaps. These are used to hedge the interest rate risk on the bank loans taken out to finance the purchase price of the site of the US subsidiary. They are valued on the basis of the banks' market valuation. The valuation methodology has been assessed in an internal process and judged to be appropriate.
Net gains and losses by category
The following table shows the net gains and losses on financial instruments based on the IFRS 9 categories:
| in €k | 2025 | 2024 |
|---|---|---|
| Financial assets at amortized cost (AC) | 412 | 846 |
| Financial liabilities at amortized cost (FLAC) | -2,706 | -4,480 |
| Financial assets or liabilities measured at fair value through profit or loss (FVthP/L) | 20 | 75 |
The net gains or losses in the financial assets at amortized cost (AC) category are primarily attributable to foreign currency measurement and those in the financial liabilities at amortized cost (FLAC) category are primarily attributable to interest expenses and foreign currency measurement. The assets and liabilities at fair value through profit or loss (FVthP/L) category relates to interest income on derivative financial instruments.
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Other information
34. Declaration of Conformity under section 161 AktG
WashTec AG has issued the declaration required under section 161 AktG for fiscal year 2025 and has made it available at https://ir.washtec.de/en/corporate-governance/, under "Declaration of Conformity."
The Management Board prepared the annual and consolidated financial statements on March 20, 2026 and presented them directly to the Supervisory Board for review.
The separate financial statements are to be adopted and the consolidated financial statements of WashTec AG approved at the Supervisory Board meeting on March 20, 2026.
35. Auditor's fees
The following fees were incurred in the reporting year for the services of the auditor (KPMG AG, Wirtschaftsprüfungsgesellschaft, Munich):
| in €k | 2025 | 2024 |
|---|---|---|
| Annual accounts auditing | 620 | 568 |
| Other assurance services | 189 | 0 |
| Other services | 0 | 75 |
| Total | 810 | 643 |
The annual accounts auditing fees relate to the audit of the consolidated financial statements of the WashTec Group, the statutory audit of the separate financial statements of WashTec AG and of the subsidiaries included in the consolidated financial statements.
Furthermore, other assurance services were provided for the audit of the consolidated sustainability statement and the formal and substantive audit of the remuneration report.
Other services in the prior year included services related to the introduction of the CSRD.
36. Information about the Company's governing bodies
Management board
| Michael Drolshagen | |
|---|---|
| Occupation, place of residence | CEO and CTO, Augsburg |
| Management Board portfolio | Corporate Culture, Communication and Philosophy, Human resources, Production, Sustainability*, R&D, Quality, Service, AUWA-Chemie GmbH |
| Sebastian Kutz | |
| --- | --- |
| Occupation, place of residence | CSO, Landsberg am Lech |
| Management Board portfolio | Sales, Key Account Management, Marketing, Business units/Product Management, WashTec Carwash Management GmbH |
| Andreas Pabst | |
| --- | --- |
| Occupation, place of residence | CFO, Bobingen |
| Management Board portfolio | Finance/Controlling, IT, Procurement, Investor Relations, Legal and Compliance, Sustainability*, Risk Management, Internal Audit, Insurance, WashTec Financial Services GmbH |
- The sustainability portfolio was assigned to Mr. Drolshagen for the period from January 1, 2025 to March 31, 2025 and has been the responsibility of Mr. Pabst since April 1, 2025.
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Supervisory Board
| Ulrich Bellgardt | |
|---|---|
| Profession, place of residence | Diplom degree in engineering, Hubersdorf, Switzerland |
| Memberships in other statutory supervisory boards | None |
| Memberships in comparable domestic and international supervisory bodies of business enterprises | None |
| Susanne Heckelsberger | (since May 13, 2025) |
| --- | --- |
| Profession, place of residence | Management Consultant, Stuttgart, Germany |
| Memberships in other statutory supervisory boards | ■ Villeroy & Boch AG, Mettlach (Member of the Supervisory Board and Chairwoman of the Audit Committee)■ Stabilus SE, Frankfurt am Main (Member of the Supervisory Board and Chairwoman of the Audit Committee)■ Schaeffler AG, Herzogenaurach (Member of the Supervisory Board) |
| Memberships in comparable domestic and international supervisory bodies of business enterprises | None |
| Dr. Hans Liebler | |
| --- | --- |
| Profession, place of residence | Managing Director of Lenbach Capital GmbH, Gräfelfing, Germany |
| Memberships in other statutory supervisory boards | None |
| Memberships in comparable domestic and international supervisory bodies of business enterprises | autowerkstattgroup N.V., Amsterdam, Netherlands (Member of the Supervisory Board) |
| Heinrich von Portatius | |
| --- | --- |
| Profession, place of residence | Member of the Management Board, Paradigm Capital AG, Grünwald, Germany |
| Memberships in other statutory supervisory boards | None |
| Memberships in comparable domestic and international supervisory bodies of business enterprises | Paradigm Capital North America ICAV, Dublin, Ireland (Member of the Board of Directors)Paradigm Capital North America Feeder ICAV, Dublin, Ireland (Member of the Board of Directors) |
| Dr. Alexander Selent | (until May 13, 2025) |
| --- | --- |
| Profession, place of residence | Supervisory Board, Limburgerhof, Germany |
| Memberships in other statutory supervisory boards | None |
| Memberships in comparable domestic and international supervisory bodies of business enterprises | None |
| Sabine Simeon Aissaoui | (since June 4, 2025) |
| --- | --- |
| Profession, place of residence | Head of Product Life Cycle Elevator and Global Escalator der TK Elevator GmbH (until December, 2025), Oberägeri, Switzerland |
| Memberships in other statutory supervisory boards | None |
| Memberships in comparable domestic and international supervisory bodies of business enterprises | Munters Group AB, Stockholm, Sweden (Member of the “Styrelse” – Board of Directors and member of the Investment Committee) |
| Peter Wiedemann | |
| --- | --- |
| Profession, place of residence | Diplom degree in engineering, Kaufering, Germany |
| Memberships in other statutory supervisory boards | None |
| Memberships in comparable domestic and international supervisory bodies of business enterprises | None |
In February 2026, Dr. Hans Liebler informed the Management Board and the Chairman of the Supervisory Board in writing that he will be stepping down from the Supervisory Board for personal reasons with effect from the end of the 2026 Annual General Meeting. Accordingly, a resolution on the election of a new Supervisory Board member is to be passed at the 2026 Annual General Meeting. The Supervisory Board will submit a nomination for his successor to the 2026 Annual General Meeting based on the recommendation of the Personnel and Nomination Committee.
WashTec Management Report Financial Statements // Notes Further Information
37. Related party disclosures
Management Board remuneration (HGB)
Total remuneration granted in fiscal year 2025 to the Management Board in accordance with Section 315e in conjunction with Section 314 (1) No. 6a of the German Commercial Code amounted to €1,735k (prior year: €4,034k). In the prior year, this item included long-term share-based remuneration with a fair value of €2,472k issued to the members of the Management Board in fiscal year 2024.
Remuneration of former members of the Management Board
There are pension obligations to a former Management Board member and to surviving dependents of a former Management Board member in the amount of €259k (prior year: €257k), which are covered by a relief fund.
Total remuneration for former members of the Management Board amounted to €150k in the fiscal year (prior year: €860k).
Supervisory Board remuneration (HGB)
The 2025 Annual General Meeting adopted a non-share-based Long Term Incentive Program 2025-2027 (LTIP 2025-2027) for the Supervisory Board with term from January 1, 2025 to December 31, 2027. LTIP 2025-2027 provides for a one-time cash award at the end of the incentive period. The LTIP is subject to the condition that a Supervisory Board member makes a personal investment of at least 2,000 WashTec shares by the investment cut-off date (August 13, 2025) and holds them until the end of the incentive period. A Supervisory Board member can also participate in LTIP 2025-2027 with shares already purchased by the member prior to the Company's Annual General Meeting. The amount of cash award under LTIP 2025-2027 depends on the development of earnings per share (EPS) during the three-year incentive period and on ROCE in fiscal year 2027. As of December 31, 2025, three Supervisory Board members are participating in LTIP 2025-2027.
The total remuneration granted to the Supervisory Board members for fiscal year 2025 amounted to €630k (prior year: €567k).
Management Board and Supervisory Board remuneration (IAS 24)
In relation to fiscal year 2025, the Group is affected by the disclosure obligations under IAS 24 solely as they pertain to business transactions with members of the Management Board and Supervisory Board and with former members of the Management Board. The terms and conditions of the transactions correspond to those of arms-length transactions.
The total expense recognized for Management Board remuneration in accordance with IFRS was €2,526k (prior year: €2,947k). €1,735k (prior year: €1,562k) related to short-term benefits. An amount of €790k was recognized as expense in relation to share-based payment for fiscal years 2024 to 2026 (prior year: €525k). The total expenses did not include any benefits relating to early termination of a Management Board contract (prior year: €710k). A total of €1,205k (prior year: €473k) was recognized in other liabilities and €109k (prior year: €52k) in other comprehensive income for the future disbursement of long-term share-based payment for the members of the Management Board active as of December 31, 2025.
The total expense recognized for remuneration of the Supervisory Board in accordance with IFRS was €790k (prior year: €524k). €630k (prior year: €524k) related to short-term benefits. A total of €159k (prior year: €0k) was recognized in other liabilities for the future disbursement in relation to the long-term obligation under LTIP 2025-2027 for the participating Supervisory Board members as of December 31, 2025. In the prior year, this included the reversal of the obligation under LTIP 2021-2024 in the amount of €42k, as the requirements for a cash award from the LTIP with the incentive period from January 1, 2022 to December 31, 2024 were not met.
WashTec Management Report Financial Statements // Notes Further Information
Share-based payment (IFRS 2)
There are contracts in place with the members of the Management Board that provide for share-based payment in the form of a Long Term Incentive Program (LTIP). This is intended to give members of the Management Board additional incentives to secure the business success of the Company in the medium and long term and to seek to deliver sustained growth in shareholder value.
The current share-based payment arrangement for the Management Board has an incentive period from January 1, 2024 to December 31, 2026 and was adopted by resolution of the Supervisory Board on March 11, 2024. It consists of two components: a non-personal-investment component and an optional personal investment component.
Under the non-personal-investment component, a Management Board member can obtain a maximum cash award, at 100% target achievement, of 100% of their respective short-term variable annual target remuneration for each year of the LTIP.
An additional personal investment component provides a Management Board member with the opportunity to increase – up to a maximum of double (cash award multiplier = 2) – their cash award under the non-personal-investment component by personal investment in WashTec AG shares. Doubling the cash award requires a personal investment in the amount of 100% of the 2024 short-term variable target annual remuneration in euros by a specified cut-off date. If the personal investment is lower, the personal investment component is proportionately smaller (cash award multiplier less than 2). If a Management Board member is appointed after the start of the incentive period, the rule for the personal investment in shares of the Company required to double the entitlement under the non-personal-investment component is that the Management Board member must make a personal investment amounting to 100% of the variable target income in euros for the year in which the Management Board member takes office. The long-term share-based payment is paid at the end of the incentive period. The amount paid depends on the achievement of agreed performance targets for return on capital employed
(ROCE), total shareholder return (TSR) and the compound annual growth rate in revenue (revenue CAGR). The performance targets must each reach the minimum threshold of 81% set by the Supervisory Board in order to count. The ROCE target has a weighting of 40%, the TSR target a weighting of 20% and the revenue growth target a weighting of 40% in determination of the cash award. If a Management Board member makes use of the personal investment component, payment is subject to the resolutive condition that one-sixth of the gross cash award under the LTIP with personal investment is reinvested in shares in the Company by the Management Board member within three months of the cash award falling due and that the Management Board member remains invested with that quantity of shares for at least three years after acquiring them. There are exemptions to the reinvestment requirement and the holding period in the event of a Management Board member leaving office.
This obligation was measured at fair value as required for share-based payment in accordance with IFRS 2.
The program constitutes equity-settled share-based payment in the amount of the required reinvestment of one-sixth of the cash award, with the remaining portion comprising cash-settled share-based payment transactions. The equity-settled share-based payment component is recognized directly in other reserves. The portion comprising cash-settled share-based payment is recognized in other liabilities.
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The obligations recognized in other liabilities for the LTIP are as follows:
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| LTIP obligations | 1,205 | 473 |
| Total | 1,205 | 473 |
The obligations recognized in other reserves for the LTIP are as follows:
| in €k | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| Portion of LTIP obligation recognized directly in other reserves | 109 | 52 |
| Total | 109 | 52 |
The expenses recognized for the LTIP are as follows:
| in €k | 2025 | 2024 |
|---|---|---|
| LTIP expenses | 790 | 525 |
| Total | 790 | 525 |
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38. Events after the balance sheet date
The company is closely monitoring the recent escalation of the Middle East conflict and the associated military conflicts throughout the Gulf region. Due to the low revenues generated by the WashTec Group in the affected region and the fact that it has neither production sites nor other assets there, the direct financial impact on revenues and earnings is considered to be insignificant. Nevertheless, the ongoing tense security situation could have a significant impact on overall economic development outside the region and, in particular, lead to increases in raw material and energy prices. Assuming stable supply chains, the resulting indirect effects are also currently considered to be insignificant for the WashTec Group. The situation is currently too volatile to make a definitive assessment of the possible consequences on a global basis.
Augsburg, March 20, 2026
Michael Drolshagen
CEO/CTO/Chairman of the
Management Board
Sebastian Kutz
CSO/Member of the
Management Board
Andreas Pabst
CFO/Member of the
Management Board
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Responsibility statement
"To the best of our knowledge, and in accordance with the applicable reporting principles for half-year financial reporting, the interim condensed consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim Group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group for the remaining months of the fiscal year."
Augsburg, March 20, 2026
Michael Drolshagen
CEO/CTO/Chairman of the
Management Board
Sebastian Kutz
CSO/Member of the
Management Board
Andreas Pabst
CFO/Member of the
Management Board
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Further Information
Independent Auditor's Report ... 224
Assurance report of the independent German Public Auditor on a limited assurance engagement in relation to the Consolidated Sustainability Statement ... 231
WashTec AG Annual Financial Statements (HGB Short Version) ... 235
Glossary ... 237
WashTec Worldwide ... 240
Group Level Key Performance Indicators (KPIs) ... 2021 through 2025 ... 241
Financial Calendar, Publishing Information, Contact ... 242
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Further Information // Independent Auditor's Report
Note: This is a translation of the German original. Solely the original text in German language is authoritative.
Independent Auditor's Report
To WashTec AG, Augsburg
Report on the Audit of the Consolidated Financial Statements and of the Combined Management Report
Opinions
We have audited the consolidated financial statements of WashTec AG and its subsidiaries (the Group), which comprise the consolidated statement of financial position as at 31 December 2025, the consolidated income statement and the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the financial year from 1 January to 31 December 2025, and notes to the consolidated financial statements, including significant information on the accounting policies. In addition, we have audited the Combined Management Report of WashTec AG for the financial year from 1 January to 31 December 2025.
In accordance with German legal requirements we have not audited the content of those components of the Combined Management Report specified in the "Other Information" section of our auditor's report.
The combined management report contains cross-references marked as unaudited that are not required by law. In accordance with German legal requirements, we have not audited the content of these cross-references or the information to which the cross-references refer.
In our opinion, on the basis of the knowledge obtained in the audit,
- the accompanying consolidated financial statements comply, in all material respects, with the IFRS Accounting Standards issued by the International Accounting Standards Board (IASB) (hereinafter referred to as "IFRS Accounting Standards") as adopted by the EU, and
the additional requirements of German commercial law pursuant to Section 315e (1) HGB [Handelsgesetzbuch: German Commercial Code] and, in compliance with these requirements, give a true and fair view of the assets, liabilities, and financial position of the Group as at 31 December 2025, and of its financial performance for the financial year from 1 January to 31 December 2025, and
- the accompanying Combined Management Report as a whole provides an appropriate view of the Group's position. In all material respects, this Combined Management Report is consistent with the consolidated financial statements, complies with German legal requirements and appropriately presents the opportunities and risks of future development. Our opinion on the Combined Management Report does not cover the content of those components of the Combined Management Report specified in the "Other Information" section of the auditor's report. The combined management report contains cross-references marked as unaudited that are not required by law. Our opinion does not cover these cross-references or the information to which the cross-references relate.
Pursuant to Section 322 (3) sentence 1 HGB, we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and of the Combined Management Report.
Basis for the Opinions
We conducted our audit of the consolidated financial statements and of the Combined Management Report in accordance with Section 317 HGB and the EU Audit Regulation No. 537/2014 (referred to subsequently as "EU Audit Regulation") and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). [Where compliance with ISAs is also relevant add: We performed the audit of the consolidated financial statements in supplementary compliance with the International Standards on Auditing (ISAs)]. Our responsibilities under those requirements and principles [in case of supplementary compliance with the ISAs, replace this with: requirements, principles and standards] are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management Report" section of our auditor's report.
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Further Information // Independent Auditor's Report
We are independent of the group entities in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. In addition, in accordance with Article 10 (2) point (f) of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinions on the consolidated financial statements and on the Combined Management Report.
Key Audit Matters in the Audit of the Consolidated Financial Statements
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the financial year from 1 January to 31 December 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.
Revenue recognition cut-off of the sale of equipment (formerly: machinery)
Please refer to "Accounting policies" in the consolidated notes to the financial statements for information on the accounting policies. In addition, please also refer to Note 7 in the notes to the consolidated financial statements on "Segment reporting".
THE FINANCIAL STATEMENT RISK
The Group's revenue amounted to EUR 498.6 million in financial year 2025.
In addition to providing services and selling consumables (formerly chemical products), revenue is generated especially from the sale of equipment. The share of revenue realized from equipment sales amounted to EUR 268 million.
WashTec AG's management has presented the criteria for the recognition of revenue from the sale of equipment in a group-wide accounting policy and implemented specific recognition and cut-off procedures.
According to the indicators specified in its accounting policy, WashTec AG has determined that the performance obligation is fulfilled at the time of transfer of the equipment to the customer; thus, revenue is recognized at a point in time. This is the case upon acceptance, shipment or installation of the equipment – depending on the contractual arrangement.
During the reporting year, WashTec AG generated a comparatively high share of revenue from equipment sales at year-end.
Due to the large number of transactions conducted in the last few weeks prior to the reporting date, there is the risk for the consolidated financial statements that revenue from equipment sales is not recognized in the period in which it was generated
OUR AUDIT APPROACH
In order to audit the recognition of revenue in the correct period, we assessed the design and implementation of internal controls with regard to ensuring the correct or actual transfer of control.
In addition, we evaluated the recognition of revenue in the correct period from the sale of equipment by comparing invoices with the corresponding purchase orders, contracts, external proof of delivery or handover protocols. This was based on selected revenues recognised before period end date using a mathematical-statistical procedure. The period prior to the reporting date was determined individually for each sub-unit on the basis of our risk assessment.
We inspected credit notes issued after the reporting date on a sample basis and confirmed that they were allocated to sales in the correct period
OUR OBSERVATIONS
WashTec AG's approach to revenue recognition cut-off from sales of equipment is appropriate.
WashTec Management Report Financial Statements Further Information // Independent Auditor's Report
Other Information
Management and/or the Supervisory Board are/is responsible for the other information. The other information comprises the following components of the Combined Management Report, whose content was not audited:
- the combined non-financial statement for the Company and the Group, which is contained in the "consolidated sustainability statement" of the combined management report,
- the combined corporate governance statement for the Company and the Group, which is contained in the "consolidated sustainability statement" section of the combined management report, and
- information extraneous to management reports and marked as unaudited.
The other Information includes also the remaining parts of the annual report.
The other Information does not include the consolidated financial statements, the Combined Management Report information audited for content and our auditor's report thereon.
Our opinions on the consolidated financial statements and on the Combined Management Report do not cover the other information, and consequently we do not express an opinion or any other form of assurance conclusion thereon.
In connection with our audit, our responsibility is to read the above-mentioned other information and, in so doing, to consider whether the other information
- is materially inconsistent with the consolidated financial statements, with the Combined Management Report information audited for content or our knowledge obtained in the audit, or
- otherwise appears to be materially misstated.
Responsibilities of Management and the Supervisory Board for the Consolidated Financial Statements and the Combined Management Report
Management is responsible for the preparation of the consolidated financial statements that comply, in all material respects, with IFRS Accounting Standards as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) HGB and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position, and financial performance of the Group. In addition, management is responsible for such internal control as they have determined necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud (i.e., fraudulent financial reporting and misappropriation of assets) or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern. They also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, they are responsible for financial reporting based on the going concern basis of accounting unless there is an intention to liquidate the Group or to cease operations, or there is no realistic alternative but to do so.
Furthermore, management is responsible for the preparation of the Combined Management Report that, as a whole, provides an appropriate view of the Group's position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, management is responsible for such arrangements and measures (systems) as they have considered necessary to enable the preparation of a Combined Management Report that is in accordance with the applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the assertions in the Combined Management Report.
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Further Information // Independent Auditor's Report
The supervisory board is responsible for overseeing the Group's financial reporting process for the preparation of the consolidated financial statements and of the Combined Management Report.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the Combined Management Report
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the Combined Management Report as a whole provides an appropriate view of the Group's position and, in all material respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and risks of future development, as well as to issue an auditor's report that includes our opinions on the consolidated financial statements and on the Combined Management Report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Section 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) [and supplementary compliance with the ISAs] will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and this Combined Management Report.
We exercise professional judgment and maintain professional skepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the consolidated financial statements and of the Combined Management Report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit of the consolidated financial statements and of arrangements and measures relevant to the audit of the Combined Management Report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control or of these arrangements and measures.
- Evaluate the appropriateness of accounting policies used by management and the reasonableness of estimates made by management and related disclosures.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to the related disclosures in the consolidated financial statements and in the Combined Management Report or, if such disclosures are inadequate, to modify our respective opinions. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to be able to continue as a going concern.
WashTec
Management Report
Financial Statements
Further Information // Independent Auditor's Report
- Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements present the underlying transactions and events in a manner that the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and financial performance of the Group in compliance with IFRS Accounting Standards as adopted by the EU and the additional requirements of German commercial law pursuant to Section 315e (1) HGB.
- Plan and perform the audit of the consolidated financial statements to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business segments within the Group to provide a basis for our opinions on the consolidated financial statements and on the Combined Management Report. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our opinions.
- Evaluate the consistency of the Combined Management Report with the consolidated financial statements, its conformity with [German] law, and the view of the Group's position it provides.
- Perform audit procedures on the prospective information presented by management in the Combined Management Report. On the basis of sufficient appropriate audit evidence we evaluate, in particular, the significant assumptions used by management as a basis for the prospective information, and evaluate the proper derivation of the prospective information from these assumptions. We do not express a separate opinion on the prospective information and on the assumptions used as a basis. There is a substantial unavoidable risk that future events will differ materially from the prospective information.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with the relevant independence requirements, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, the actions taken or safeguards applied to eliminate independence threats.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.
Other Legal and Regulatory Requirements
Report on the Assurance on the Electronic Rendering of the Consolidated Financial Statements and the Combined Management Report Prepared for Publication Purposes in Accordance with Section 317 (3a) HGB
Assurance Opinion
We have performed assurance work in accordance with Section 317 (3a) HGB to obtain reasonable assurance about whether the rendering of the consolidated financial statements and the Combined Management Report (hereinafter the "ESEF documents") contained in the electronic file WashTec_AG_KA_KLB_ESEF_2025-12-31.xbri made available and prepared for publication purposes complies in all material respects with the requirements of Section 328 (1) HGB for the electronic reporting format ("ESEF format"). In accordance with German legal requirements, this assurance work extends only to the conversion of the information contained in the consolidated financial statements and the Combined Management Report into the ESEF format and therefore relates neither to the information contained in these renderings nor to any other information contained in the file identified above.
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Further Information // Independent Auditor's Report
Basis for the Assurance Opinion
We conducted our assurance work on the rendering of the consolidated financial statements and the Combined Management Report contained in the file made available and identified above in accordance with Section 317 (3a) HGB and the IDW Assurance Standard: Assurance Work on the Electronic Rendering of Financial Statements and Management Reports Prepared for Publication Purposes in Accordance with Section 317 (3a) HGB (IDW AsS 410 (06.2022)). Our responsibility in accordance therewith is further described in the "Group Auditor's Responsibilities for the Assurance Work on the ESEF Documents" section. Our audit firm applies the IDW Standard on Quality Management 1: Requirements for Quality Management in Audit Firms (IDW QMS 1 (09.2022)).
Responsibilities of Management and the Supervisory Board for the ESEF Documents
The Company's management is responsible for the preparation of the ESEF documents including the electronic rendering of the consolidated financial statements and the Combined Management Report in accordance with Section 328 (1) sentence 4 item 1 HGB and for the tagging of the consolidated financial statements in accordance with Section 328 (1) sentence 4 item 2 HGB.
In addition, the company's management is responsible for such internal control that they have considered necessary to enable the preparation of ESEF documents that are free from material intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB for the electronic reporting format.
The supervisory board is responsible for overseeing the process of preparing the ESEF documents as part of the financial reporting process.
Group Auditor's Responsibilities for the Assurance Work on the ESEF Documents
Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB. We exercise professional judgement and maintain professional scepticism throughout the assurance work. We also:
- Identify and assess the risks of material intentional or unintentional non-compliance with the requirements of Section 328 (1) HGB, design and perform assurance procedures responsive to those risks, and obtain assurance evidence that is sufficient and appropriate to provide a basis for our assurance opinion.
- Obtain an understanding of internal control relevant to the assurance on the ESEF documents in order to design assurance procedures that are appropriate in the circumstances, but not for the purpose of expressing an assurance opinion on the effectiveness of these controls.
- Evaluate the technical validity of the ESEF documents, i.e. whether the file made available containing the ESEF documents meets the requirements of the Delegated Regulation (EU) 2019/815, as amended as at the reporting date, on the technical specification for this electronic file.
- Evaluate whether the ESEF documents provide an XHTML rendering with content equivalent to the audited consolidated financial statements and the audited Combined Management Report.
- Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) in accordance with the requirements of Articles 4 and 6 of the Delegated Regulation (EU) 2019/815, as amended as at the reporting date, enables an appropriate and complete machine-readable XBRL copy of the XHTML rendering.
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Management Report
Financial Statements
Further Information // Independent Auditor's Report
Further Information pursuant to Article 10 of the EU Audit Regulation
We were elected as group auditor by the annual general meeting on 13 May 2025. We were engaged by the supervisory board on 22 November 2025. We have been the group auditor of WashTec AG without interruption since the financial year 2024.
We declare that the opinions expressed in this auditor's report are consistent with the additional report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).
Other Matter – Use of the Auditor’s Report
Our auditor’s report must always be read together with the audited consolidated financial statements and the audited Combined Management Report as well as the examined ESEF documents. The consolidated financial statements and Combined Management Report converted to the ESEF format – including the versions to be entered in the company register – are merely electronic renderings of the audited consolidated financial statements and the audited Combined Management Report and do not take their place. In particular, the ESEF report and our assurance opinion contained therein are to be used solely together with the examined ESEF documents made available in electronic form.
German Public Auditor Responsible for the Engagement
The German Public Auditor responsible for the engagement is Rainer Rupprecht.
Munich, March 20, 2026
KPMG AG
Wirtschaftsprüfungsgesellschaft
Huber-Straßer
Wirtschaftsprüferin
[German Public Auditor]
Rupprecht
Wirtschaftsprüfer
[German Public Auditor]
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Further Information // Assurance Report
Assurance report of the independent German Public Auditor on a limited assurance engagement in relation to the Consolidated Sustainability Statement¹
To WashTec AG, Augsburg
Assurance Conclusion
We have conducted a limited assurance engagement on the Consolidated Sustainability Statement, included in section "9. Consolidated sustainability statement" of the group management report, of WashTec AG, Augsburg, for the financial year from 1 January to 31 December 2025. The Consolidated Sustainability Statement was prepared to fulfil the requirements of Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 (Corporate Sustainability Reporting Directive, CSRD) and Article 8 of Regulation (EU) 2020/852 applying Delegated Regulation (EU) 2026/73 of the European Commission, adopted on 4 July 2025 as well as Sections 315b and 315c of the HGB [Handelsgesetzbuch: German Commercial Code] for a consolidated non-financial statement.
The prior year's disclosures marked as unassured are not subject to our assurance engagement.
Based on the procedures performed and the evidence obtained, nothing has come to our attention that causes us to believe that the accompanying Consolidated Sustainability Statement is not prepared, in all material respects, in accordance with the requirements of the CSRD and Article 8 of Regulation (EU) 2020/852 applying Delegated Regulation (EU) 2026/73 of the European Commission, adopted on 4 July 2025, Sections 315b and 315c HGB for a consolidated non-financial statement, and the supplementary criteria presented by the executive directors of the Company. This assurance conclusion includes that nothing has come to our attention that causes us to believe that:
- the accompanying Consolidated Sustainability Statement does not comply, in all material respects, with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the entity to identify information to be included in the Consolidated Sustainability Statement (the materiality assessment) is not, in all material respects, in accordance with the description set out in section "9.1.3.3. Material impacts, risks and opportunities and their interaction with strategy and business model" of the Consolidated Sustainability Statement, or
- the disclosures in "9.2.1 Disclosures on the EU Taxonomy Regulation" of the Consolidated Sustainability Statement do not comply, in all material respects, with Article 8 of Regulation (EU) 2020/852 applying Delegated Regulation (EU) 2026/73 of the European Commission, adopted on 4 July 2025.
We do not express an assurance conclusion on the prior year's disclosures marked as unassured.
Basis for the Assurance Conclusion
We conducted our assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised): Assurance Engagements Other Than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Board (IAASB).
The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.
Our responsibilities under ISAE 3000 (Revised) are further described in the section "German Public Auditor's Responsibilities for the Assurance Engagement on the Consolidated Sustainability Statement".
¹Our engagement applied to the German version of the Consolidated Sustainability Statement. This text is a translation of the Assurance report of the independent German Public Auditor issued in the German language, whereas the German text is authoritative.
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Further Information // Assurance Report
We are independent of the entity in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. Our audit firm has applied the requirements for a system of quality control as set forth in the IDW Quality Management Standard issued by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW): Requirements for Quality Management in the Audit Firm (IDW QMS 1 (09.2022)) and International Standard on Quality Management (ISQM) 1 issued by the IAASB. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusion.
Responsibilities of the Executive Directors and the Supervisory Board for the Consolidated Sustainability Statement
The executive directors are responsible for the preparation of the Consolidated Sustainability Statement in accordance with the requirements of the CSRD and the applicable German legal and other European requirements as well as with the supplementary criteria presented by the executive directors of the Company and for designing, implementing and maintaining such internal control that they have considered necessary to enable the preparation of a Consolidated Sustainability Statement in accordance with these requirements that is free from material misstatement, whether due to fraud (i.e., fraudulent sustainability reporting in the Consolidated Sustainability Statement) or error.
This responsibility of the executive directors includes establishing and maintaining the materiality assessment process, selecting and applying appropriate reporting policies for preparing the Consolidated Sustainability Statement, as well as making assumptions and estimates and ascertaining forward-looking information for individual sustainability-related disclosures.
The Supervisory Board is responsible for overseeing the process for the preparation of the Consolidated Sustainability Statement.
Inherent Limitations in Preparing the Consolidated Sustainability Statement
The CSRD and the applicable German legal and other European requirements contain wording and terms that are subject to considerable interpretation uncertainties and for which no authoritative, comprehensive interpretations have yet been published. As such wording and terms may be interpreted differently by regulators or courts, the legality of measurements or evaluations of sustainability matters based on these interpretations is uncertain. As further set forth in section "9.1.1.2.2. Estimates and uncertainties" of the Consolidated Sustainability Statement, the quantification of the non-financial performance indicators is also subject to inherent uncertainties due to estimation and measurement accuracies. Significant estimates relate to the determination of Scope 3 GHG emissions in the categories "3.1 Purchased goods and services" and "3.11 Use of sold products".
These inherent limitations also affect the assurance engagement on the Consolidated Sustainability Statement.
German Public Auditor's Responsibilities for the Assurance Engagement on the Consolidated Sustainability Statement
Our objective is to express a limited assurance conclusion, based on the assurance engagement we have conducted, on whether any matters have come to our attention that cause us to believe that the Consolidated Sustainability Statement has not been prepared, in all material respects, in accordance with the CSRD, the applicable German legal and other European requirements and the supplementary criteria presented by the Company's executive directors, and to issue an assurance report that includes our assurance conclusion on the Consolidated Sustainability Statement.
WashTec Management Report Financial Statements Further Information // Assurance Report
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised), we exercise professional judgment and maintain professional skepticism. We also:
- obtain an understanding of the process used to prepare the Consolidated Sustainability Statement, including the materiality assessment process carried out by the entity to identify the disclosures to be reported in the Consolidated Sustainability Statement.
- identify disclosures where a material misstatement due to fraud or error is likely to arise, design and perform procedures to address these disclosures and obtain limited assurance to support the assurance conclusion. The risk of not detecting a material misstatement resulting from fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. In addition, the risk of not detecting a material misstatement in information obtained from sources not within the entity's control (value chain information) is ordinarily higher than the risk of not detecting a material misstatement in information obtained from sources within the entity's control, as both the entity's executive directors and we as practitioners are ordinarily subject to restrictions on direct access to the sources of the value chain information.
- consider the forward-looking information, including the appropriateness of the underlying assumptions. There is a substantial unavoidable risk that future events will differ materially from the forward-looking information.
Summary of the Procedures Performed by the German Public Auditor
A limited assurance engagement involves the performance of procedures to obtain evidence about the sustainability information. The nature, timing and extent of the selected procedures are subject to our professional judgment.
In performing our limited assurance engagement, we further:
- evaluated the suitability of the criteria as a whole presented by the executive directors in the Consolidated Sustainability Statement.
- inquired of the executive directors and relevant employees involved in the preparation of the Consolidated Sustainability Statement about the preparation process, including the materiality assessment process carried out by the entity to identify the disclosures to be reported in the Consolidated Sustainability Statement, and about the internal controls relating to this process.
- evaluated the reporting policies used by the executive directors to prepare the Consolidated Sustainability Statement.
- evaluated the reasonableness of the estimates and related information provided by the executive directors. If, in accordance with the ESRS, the executive directors estimate the value chain information to be reported for a case in which the executive directors are unable to obtain the information from the value chain despite making reasonable efforts, our assurance engagement is limited to evaluating whether the executive directors have undertaken these estimates in accordance with the ESRS and assessing the reasonableness of these estimates, but does not include identifying information in the value chain that the executive directors were unable to obtain.
- performed analytical procedures and made inquiries in relation to selected information in the Consolidated Sustainability Statement.
- conducted one site visit.
- considered the presentation of the information in the Consolidated Sustainability Statement.
- considered the process for identifying taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Consolidated Sustainability Statement.
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Further Information // Assurance Report
Restriction of Use/Clause on General Engagement Terms
This assurance report is solely addressed to WashTec AG, Augsburg.
The engagement, in the performance of which we have provided the services described above on behalf of WashTec AG, Augsburg, was carried out on the basis of the General Engagement Terms for Wirtschaftsprüferinnen, Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (Allgemeine Auftragsbedingungen für Wirtschaftsprüferinnen, Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften) dated as at 1 January 2024 (www.kpmg.de/AAB_2024). By taking note of and using the information as contained in our report each recipient confirms to have taken note of the terms and conditions stipulated in the aforementioned General Engagement Terms (including the liability limitations to EUR 4 million specified in item No. 9 included therein) and acknowledges their validity in relation to us.
Munich, 20 March 2026
KPMG AG
Wirtschaftsprüfungsgesellschaft
[Original German version signed by:]
Rupprecht
Wirtschaftsprüfer
[German Public Auditor]
Vogl
Wirtschaftsprüferin
[German Public Auditor]
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Further Information // Financial Statements of WashTec AG
235
Financial Statements of WashTec AG – Balance Sheet (HGB)
| Assets | Dec 31, 2025 | Dec 31, 2024 |
|---|---|---|
| in €k | ||
| A. Non-current assets | ||
| I. Intangible assets | ||
| Purchased concessions, industrial and similar rights and assets, and licenses in such rights and assets | 5 | 16 |
| II. Property, plant and equipment | ||
| Fixtures and fittings | 76 | 88 |
| III. Financial assets | ||
| Shares in affiliated companies | 128,049 | 128,049 |
| 128,130 | 128,151 | |
| B. Current assets | ||
| I. Receivables and other assets | ||
| 1. Receivables from affiliated companies | 41,106 | 34,483 |
| 2. Other assets | 9,192 | 5,368 |
| 50,298 | 39,851 | |
| II. Cash and cash equivalents | 142 | 0 |
| C. Prepaid expenses | 24 | 33 |
| Assets | 178,595 | 168,035 |
| Equity and Liabilities | Dec 31, 2025 | Dec 31, 2024 |
| --- | --- | --- |
| in €k | ||
| A. Equity | ||
| I. Subscribed capital | 40,000 | 40,000 |
| Treasury shares (notional amount) | -1,797 | -1,702 |
| 38,203 | 38,298 | |
| II. Capital reserves | 90,845 | 90,845 |
| III. Retained earnings | 38,140 | 33,951 |
| 167,188 | 163,094 | |
| B. Provisions | ||
| 1. Tax provisions | 6,442 | 1,173 |
| 2. Other provisions | 4,000 | 2,698 |
| 10,442 | 3,871 | |
| C. Liabilities | ||
| 1. Trade payables | 314 | 195 |
| 2. Liabilities to affiliated companies | 258 | 183 |
| 3. Other liabilities | 393 | 692 |
| of which taxes €391k (prior year: €689k) | ||
| of which liabilities to shareholders €2k (prior year: €2k) | ||
| 965 | 1,070 | |
| Equity and liabilities | 178,595 | 168,035 |
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Further Information // Financial Statements of WashTec AG
236
Financial Statements of WashTec AG – Income Statement (HGB)
| in €k | 2025 | 2024 |
|---|---|---|
| 1. Revenue | 6,379 | 3,586 |
| 2. Other operating income | 347 | 288 |
| of which from affiliated companies €61k (prior year: €176k) | ||
| of which from currency translation €0k (prior year: €0k) | ||
| 6,726 | 3,875 | |
| 3. Cost of materials (cost of sales) | ||
| Cost of purchased services | -80 | -38 |
| 4. Personnel expenses | ||
| a) Wages and salaries | -3,731 | -3,109 |
| b) Social security, pension and other benefit costs | -86 | -79 |
| of which for pensions €-8k (prior year: €-9k) | ||
| -3,817 | -3,188 | |
| 5. Amortization, depreciation and impairment of intangible assets and property, plant and equipment | -37 | -35 |
| 6. Other operating expenses | -3,232 | -3,157 |
| of which from currency translation €-2k (prior year: €0k) | ||
| -7,165 | -6,418 | |
| -440 | -2,543 | |
| 7. Income from profit and loss pooling agreements | 51,099 | 44,433 |
| 8. Other interest and similar income | 262 | 157 |
| of which from affiliated companies €262k (prior year: €147k) | ||
| 9. Interest and similar expenses | -6 | -22 |
| of which to affiliated companies €-2k (prior year: €-18k) | ||
| 51,355 | 44,567 | |
| 10. Income taxes | -13,199 | -8,702 |
| 11. Profit after tax | 37,716 | 33,322 |
| 12. Other taxes | -2 | -4 |
| 13. Net income for the period | 37,714 | 33,951 |
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Further Information // Glossary
Glossary
| AB | Aktiebolag (Swedish company form) |
|---|---|
| Accident rate | Work accidents/million hours worked |
| AG | Aktiengesellschaft (German company form) |
| AktG | Aktiengesetz (German Stock Corporation Act) |
| AS | Aksjeselskap (Norwegian company form) |
| A/S | Aktieselskab (Danish company form) |
| B.V. | Besloten Vennootschap met beperkte aansprakelijkheid (Dutch company form) |
| CAGR | Compound annual growth rate |
| CapEx | Capital expenditure |
| Capital employed | Non-current assets including goodwill and right-of-use assets + NOWC, calculated as the average over five quarters |
| Cash flow | Total inflows and outflows of cash and cash equivalents in a period |
| Cash funds | Cash and cash equivalents plus bank overdrafts and interest-bearing short-term loans |
| CCM | Climate Change Mitigation |
| CE | Circular Economy |
| CMS | Compliance Management System |
| Code | German Corporate Governance Code |
| Conveyor tunnel system | In conveyor tunnel systems, the vehicle is transported by a conveyor past fixed washing and drying equipment; this makes for increased vehicle throughput per hour compared with a gantry carwash |
| Consolidated sustainability statement | Non-financial statement |
| --- | --- |
| Corporate governance | Framework for responsible corporate management and control geared to sustainability |
| CO2e | CO2-Equivalents |
| CSR | Corporate social responsibility |
| CSRD | Corporate Sustainability Reporting Directive (CSRD); new EU directive for sustainability reporting with first-time application from fiscal year 2024 onwards |
| Dividend yield | Distributed dividend as a percentage of the quoted stock price at the time. The dividend yield indicates shareholders' yield on an investment in the shares. |
| DNSH | Do no significant harm (principle of the EU Taxonomy) |
| Earnings per share (EPS) | Net income/weighted average shares outstanding |
| EBIT | Earnings before interest and taxes |
| EBIT margin | EBIT/revenue |
| EBITDA | Earnings before interest, taxes, depreciation and amortization |
| EBITDA margin | EBITDA/revenue |
| EBT | Earnings before taxes |
| Equity | Funds made available to the entity by owners by paying in and/or by contribution or from retained earnings |
| Equity ratio | Equity/total assets |
| ESG | Environmental, social, and governance |
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Further Information // Glossary
Glossary
| ESRS | European Sustainability Reporting Standards |
|---|---|
| EU | European Union |
| EURIBOR | Euro Interbank Offered Rate; reference rate for euro term deposits in interbank business |
| ESTR | Euro Short-Term Rate; the European Central Bank's reference rate for euros, based on Eurosystem money market statistics |
| Financial covenants | Requirements to be complied with in connection with a loan |
| Financial liabilities | Financial liabilities are calculated as follows: interest-bearing loans + lease liabilities |
| Free cash flow | Free cash flow available for dividend distributions, debt repayment or reinvestment; free cash flow is calculated as follows: net cash inflow from operating activities – net cash outflow from investing activities |
| Free cash flow margin | Free cash flow in relation to revenue |
| Gantry carwash | In a gantry carwash, washing and drying is performed by a railed gantry that moves back and forth several times over the stationary vehicle |
| GHG | Greenhouse gases |
| GHG-Protocol | Greenhouse gas corporate accounting and reporting standard |
| GmbH | Gesellschaft mit beschränkter Haftung (German company form) |
| Gross profit | Revenue less cost of sales |
| Gross profit margin | Gross profit/revenue |
| HGB | Handelsgesetzbuch (German Commercial Code) |
| HSE | Health, safety and environment |
| IAS | International Accounting Standards |
| --- | --- |
| IASB | International Accounting Standards Board |
| ICS | Internal control system |
| IFRIC | International Financial Reporting Interpretations Committee |
| IFRS | International Financial Reporting Standards; internationally harmonized and applied financial reporting standards compiled by the International Accounting Standards Board (IASB) |
| ILO | International labor organization |
| IMF | International Monetary Fund |
| Inc. | Incorporated (United States company form) |
| IRO | Impacts, Risks and Opportunities |
| ISO | International Organization for Standardization |
| KPI | Key Performance Indicators |
| Ltd. | Limited (United Kingdom company form) |
| LTIP | Long-term incentive program; long-term share-based remuneration |
| Managers' transactions | Managers' own transactions |
| Net financial debt | Net financial debt is calculated as follows: cash and cash equivalents less financial liabilities |
| NOWC | Net operating working capital (NOWC) is calculated as follows: trade receivables + inventories – trade payables – contract liabilities from prepayments |
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Further Information // Glossary
Glossary
| OpEx | Operating expenditure |
|---|---|
| QHSE | Quality Health Safety Environment |
| Pty Ltd. | Proprietary limited (Australian company form) |
| RMS | Risk management system |
| ROCE | Return on capital employed is the ratio of EBIT to capital employed and is calculated as follows: EBIT/capital employed |
| S. A. S. | Société par actions simplifiée (French company form) |
| S. A. U. | Sociedad Anónima Unipersonal (Spanish company form) |
| SCC | Safety certificate contractors |
| Self-service carwash | Self-service wash bays, single or multiple-bay wash systems where customers wash their vehicles themselves using a high-pressure lance or brush |
| SME | Small and medium-sized enterprises |
| SOFR | Secured Overnight Financing Rate; Reference interest rate for the US dollar currency, which is based on the transactions of the US dollar repo market |
| SP. Z O. O. | Spółka z ograniczoną odpowiedzialnością (Polish company form) |
| S. r. I. | Società a responsabilità limitata (Italian company form) |
| S. r. O. | Společnost s ručením omezeným (Czech company form) |
| TCFD | Task Force on Climate-Related Financial Disclosures |
| Total shareholder return | Total shareholder return (TSR) is the total return achieved by a shareholder on an investment in a share over a specified period of time and is expressed as a percentage of the invested capital. It is calculated as follows: [(final share price - initial share price) + dividend]/initial share price. |
| To ensure correct periodization, the closing share price of the previous year is used for the initial share price. | |
| --- | --- |
| UN | United Nations |
| USA | United States of America |
| USD | US dollar |
| Value-at-risk | Total risk potential which is not exceeded with the probability of the confidence level used (at WashTec 95%) |
| WashTec | WashTec refers to the WashTec Group unless it is expressly indicated that it refers to a specific company |
| WpHG | Wertpapierhandelsgesetz (German Securities Trading Act) |
| Work accidents | Accidents at work (excluding commuting accidents) with a period of absence of at least one working day (excluding accident day) |
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Further Information // WashTec Worldwide
WashTec worldwide - Subsidiaries
Australia
WashTec Australia Pty. Ltd.
Suite 6.03, 25 Restwell Street, Bankstown NSW 2200
PO Box 268 Bankstown NSW 1885
Australia 2044
[email protected]
Austria
WashTec Cleaning Technology GmbH
Wehlistraße 27 b
A-1200 Wien
[email protected]
Canada
WTHVH Cleaning Technologies Canada, Inc.
5035 North Service Road, Unit D11-13
CA-Burlington, Ontario L7L 5V2
[email protected]
Czech Republic
WashTec Cleaning Technology s. r. o.
Prumyslová zóna Mexiko
U Mexika 1309
33023 Nýrany
[email protected]
Denmark
WashTec A/S
Guldalderen 10
DK-2640 Hedehusene
[email protected]
France
WashTec France S.A.S.
200 rue du Grand Bouland
FR-45760 Boigny sur Bionne
[email protected]
Italy
WashTec S.r.l.
Via Achille Grandi 16/E
I-15033 Casale Monferrato
[email protected]
Netherlands
WashTec Benelux
Industrieterrein Laansinghage
Radonstraat 9
NL-2718 SV Zoetermeer
[email protected]
New Zealand
WashTec New Zealand Limited
2 Te Apunga Place, Mount Wellington,
Auckland New Zealand 1060
[email protected]
Norway
WashTec Bilvask AS
Slependveien 108
N-1396 Billingstad
[email protected]
Poland
WashTec Polska Sp. z o.o.
ul. Towarowa 7
PL-00-839 Warszawa
[email protected]
WashTec Operational Services Sp. z o.o.
Wadowicka 8H
PL-30-415 Kraków
[email protected]
Sweden
WashTec Nordics AB
c/o WashTec Nordics AB
Box 132
SE-51723 Bollebygd
[email protected]
Spain
WashTec Spain, S.A.U.
C/Isla Graciosa, 1
Edificio Ancora
ES-28703 San Sebastián de los Reyes
(Madrid)
[email protected]
United Kingdom
WashTec (UK) Ltd.
Unit 14a Oak Industrial Park
Chelmsford Rd.
Great Dunmow
Essex CM6 1XN, UK
[email protected]
USA
Mark vi Equipment Inc.
5981 Tennyson Street
CO-80003 Arvada, USA
[email protected]
Distributors
An up-to-date list of our international sales partners can be found online at www.washtec.com
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WashTec
Management Report
Financial Statements
Further Information // Group Level Key Performance Indicators
Group Level Key Performance Indicators (kPIs) 2021 through 2025
| 2021 | 2022 | 2023 | 2024 | 2025 | ||
|---|---|---|---|---|---|---|
| Revenue | €m | 430.5 | 482.2 | 489.5 | 476.9 | 498.6 |
| EBIT | €m | 45.7 | 38.0 | 41.9 | 45.5 | 48.9 |
| EBIT margin | % | 10.6 | 7.9 | 8.6 | 9.5 | 9.8 |
| EBT | €m | 44.8 | 37.3 | 38.4 | 42.3 | 46.5 |
| Net income | €m | 31.1 | 26.4 | 28.0 | 31.0 | 30.7 |
| Earnings per share | € | 2.32 | 1.97 | 2.09 | 2.32 | 2.29 |
| Dividend per share | € | 2.90 | 2.20 | 2.20 | 2.40 | 2.50^{1} |
| Free cash flow | €m | 42.3 | 16.2 | 46.1 | 39.5 | 41.9 |
| Balance sheet total | €m | 267.0 | 284.5 | 271.3 | 279.7 | 286.6 |
| Equity | €m | 98.4 | 88.1 | 85.8 | 88.5 | 82.0 |
| Employees^{2} | persons | 1,767 | 1,806 | 1,768 | 1,715 | 1,811 |
1 Dividend proposal to the Annual General Meeting 2026
2 Average for the year
三
WashTec
Management Report
Financial Statements
Further Information // Financial Calendar / Publishing Information / Contact
Financial Calendar
May 5, 2026 Quarterly statement Q1 2026
May 12, 2026 Annual General Meeting 2026
Aug 4, 2026 Q2 Report 2026
Nov 3, 2026 Quarterly statement Q1-3 2026
Publishing information
Publisher
WashTec AG
Argonstrasse 7
D-86153 Augsburg
Germany
Design/Layout
Büro Benseler
Text
WashTec AG
Photo
altro - die Fotoagentur,
cm photodesign,
mocean movies e.K.,
Neubauerschwarz GmbH,
WashTec AG
Contact
WashTec AG
Argonstraße 7
86153 Augsburg
Germany
Phone +49 821 5584-0
www.washtec.com
WashTec
WashTec AG
Argonstrasse 7
86153 Augsburg
Germany
Phone +49 821 5584-0
www.washtec.com
[email protected]