WashTec AG — Call Transcript 2016

Aug 4, 2016

Conference Call

WashTec AG, H1 2016 Report

Content

1	Facts & Figures
2	Share Performance
3	Outlook

Highlights H1 2016 – strong Q2 leads to 6.3 % growth per June 30 (FX adj.)

• Equipment & Service continue to drive growth
• Business with individual operators and smaller chains grows disproportionally
• Positive feedback to innovations shown at new lead fair uniti expo Stuttgart
• Investments into showroom in Augsburg and extension of chemical production in progress

EBIT after 6 months at 9.2% driven by strong Q2

Comments:

• Q2 revenues increase by 8.7%
• Europe and APAC contribute to revenue and EBIT growth
• Increase of net cash flow due to higher revenues and tax refunds

* Rounding differences possible

Equipment & Service grow continuosly, Chemicals grow by 13% adjusted by Canada

In € m, H1 Rounding differences possible	2016	2015	Change	in %
Equipment & Service	142.6	132.9	9.7	7.3
Chemicals	20.4	20.6	(0.2)	(1.0)
Operations & other	6.3	7.0	(0.7)	(10.0)
Total	169.2	160.6	8.6	5.4

Revenue & EBIT growth driven by Europe & APAC while NA impacted by delay of key account installs and Canada effect

Revenues in €m*:

EBIT and EPS mainly due to higher revenues above prior year

in €m*	H1 2016	H1 2015
Revenues	169.2	160.6
Gross margin	101.7 [60.1%]	96.7 [60.2%]
Personnel expenses	(59.5) [35.2%]	(55.6) [34.6%]
Other operating expenses	(25.4) [15.0%]	(25.3) [15.8%]
EBITDA	20.0	18.6
Depreciation	(4.5)	(4.8)
EBIT	15.5 [9.2%]	13.8 [8.6%]
Financial result	(0.1)	(0.3)
EBT	15.5	13.5
Tax expenses	(4.8)	(4.8)
Net profit	10.7	8.8
Earnings per share (in €)	0.80	0.63
* Rounding differences possible

7 | Conference Call, August 04, 2016

Solid balance sheet after dividend payout of € 22.8m in May

in €m*	June 30, 2016	Dec 31, 2015
Balance sheet total	191.5	190.0
Goodwill	42.3	42.3
Equity	67.2	80.3
Net finance debt	16.4	1.9
Net working capital	77.3	78.1

	June 30, 2016	June 30, 2015
Net cash flow	16.1	12.9
Cash outflow from investing activities	7.6	2.4
Free cash flow	8.4	10.5
* Rounding differences possible 8 Conference Call, August 04, 2016

Content

1	Facts & Figures
2	Share Performance
3	Outlook

Several research updates with increased target prices

Content

1	Facts & Figures
2	Share Performance
3	Outlook

Guidance for the full year and upcoming events

Guidance:

• Revenue increase of approximately 5% at a double digit EBIT margin
• All segments expected to grow

• 6% EBIT growth yoy confirmed

• Investments will continue in H2 2016
• Chances and Risks:
• Brexit with limited impact on WashTec group
• Chances with global key accounts improve

Upcoming events:

• Participation in automechanika fair, Frankfurt, September
• Showroom opening Augsburg, September
• Participation in several investment conferences and roadshows
• Preparation of SAP rollout to North America

Backup

Financial calendar 2016

August 4, 2016	H1 2016 Report
September 14, 2016	Roadshow London
September 20-22, 2016	Baader Investment Conference Munich
September 22, 2016	Company visit Investors
October 27, 2016	Berenberg Conference New York
October 28, 2016	Q3 2016 Report
November 21-23, 2016	Equity Forum Frankfurt

Disclaimer

No offer:

This document does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. neither this document nor any copy of it may be taken or transmitted into the united states or provided or transmitted to any U.S. person (within the meaning of regulations under the U.S. securities act of 1933, as amended).

Confidentiality:

This document is strictly confidential to the recipient, is being supplied to you solely for your information, may not be distributed to the press or other media (including information vendors and wire services) and may not be reproduced in any form or redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose.

Cautionary Note Regarding Forward-Looking Statements:

This document refers to statements relating expressly and implicitly to the future. Such forward-looking statements are based on current expectations, estimates, forecasts and prognoses concerning the development of the market as well as management estimates and assumptions. Such forward-looking statements are no guarantee that events or results will actually materialise in the future and are subject to risks, uncertainties, assumptions and other factors that could lead to actual events or results deviating substantially from those anticipated in these forward-looking statements. The company assumes no obligation to update any forwardlooking information.