WashTec AG — Call Transcript 2016

Apr 29, 2016

Conference Call

WashTec AG, Q1 2016 Report

Slightly higher revenues and - as expected - lower EBIT than in Q1 2015

Comments:

• FX adjusted revenue increase by 2.2%
• Higher Net Cashflow due to lower tax payments
• EBIT below prior year while EPS stable

Equipment & Service show further growth although Q1 2015 was already strong, Chemicals w/o Canada + 8%

In € m, Q1
Rounding differences possible	2016	2015	Change	in %
Equipment & Service	63.9	61.9	+2.0	+3.2
Chemicals	9.8	10.3	-0.5	-4.9
Operations & other	3.1	3.3	-0.2	-6.1
Total	76.8	75.5	+1.3	+1.7

Revenues and earnings WT Group and per segment Q1 2016 vs. Q1 2015

High EBIT for Q1 - as expected - below 2015. EPS improved due to lower

tax rate (in Mio. €)	Q1 2016	Q1 2015
Revenues	76.8	75.5
Gross margin	45.9 [59.7%]	45.4 [60.1%]
Personnal expenses	(29.0) [37.8%]	(27.9) [37.0%]
Other operating expenses	(11.8) [15.3%]	(12.8) [17.0%]
EBITDA	6.0	6.7
Depreciation	(2.2)	(2.4)
EBIT	3.7 [4.9%]	4.3 [5.7%]
Financial result	(0.1)	(0.1)
EBT	3.6	4.2
Tax expenses	(1.1)	(1.7)
Net profit	2.6	2.5
Earnings per share (in €)	0.19	0.18

Higher cash flow and higher investments in equipment and buildings compared to 2015

	March 31, 2016	Dec. 31, 2015
Balance sheet total	190.7	190.0
Goodwill	42.3	42.3
Equity	82.3	80.3	Equity ratio 43.2%
Net finance liquidity	5.7	-1.9
Net working capital	73.4	78.1
	March 31, 2016	March 31, 2015
Net cash flow	10.6	2.7
Cash outflow from investing activities	3.0	1.2
Free cash flow	7.6	1.5

Share performance and Investor Relations

Analyst Coverage
Analyst (+ Date)	Recommen dation	Target Price (€)
Hauck & Aufhäuser (02/16)	Buy	35.00
HSBC (02/16)	Hold	31.00
MM Warburg (03/16)	Buy	32.30
Bankhaus Lampe (01/16)	Buy	33.00
	Average	32.83

Trade Volume (Xetra)
Period	Volume (pcs.)
	2016	2015
Jan. – Mar.	825,628	426,322

Comments:

• Coverage of Bankhaus Lampe, Hauck & Aufhäuser, HSBC and MM Warburg
• Dividend of € 1,70 per share proposed
• Inclusion into SDAX as of March 21, 2016
• Annual General Meeting takes place May 11, 2016

7 | Conference Call, April 29, 2016

2) Leifina GmbH & Co. KG et al.

3) Nmás1 Asset Management, SGIIC, S.A

Outlook 2016

For the WashTec Grouproup: significant (>3%) increase in revenues and in EBIT (>6%)

• Core Europe: significant increase in revenues and earnings
• North America: significant increase in revenues and earnings
• Asia/Pacific: significant increase in revenues and earnings
• Or, in other words: 3-5% growth and a double-digit EBIT

Miscellaneuos

• Progress of projects showroom Augsburg and production extension Grebenau as planned
• Investments in sales organization and infrastructure will continue over the year
• Risk opportunties balance slightly improved versus Dec 2015
• Higher order backlog in all segments indicates a Q2 in line with year-end guidance
• Worldwide roll-out of WashTec corporate philosophy and leaderships trainings 65% completed
• International car wash show in Stuttgart June 14 16, 2016

Financial calendar 2016

May 11, 2016	Annual General Meeting Augsburg
Aug 04, 2016	Publication of H1 Report
Oct 28, 2016	Publication of Q3 Report
Nov 21-23, 2016	Equity Forum Frankfurt

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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 forward-looking information.