WashTec AG — Call Transcript 2017

Mar 22, 2017

Conference Call March 22, 2017

Build with passion – 2016 has been a successfull year

Showroom

Maximise your business

4 dimensions

Global workshops & trainings

Family & Friends Day

Milestones 2016: what we achieved last year…

Corporate philosophy and communication	• Global rollout corporate philosophy • WashTec specific management trainings
Sales excellence initiatives	• Growth in all regions, products and customer segments
Continuous innovations	• Showroom opened and in heavy use • Innovation Award of automechanika • High market acceptance of Foam Sensation etc.
All "Stakeholders" participate in WashTec's success	• Total shareholder return of 67.87% • Family & Friends Day • Investments into infrastructure • Bonus for all employees (2016 and 2017)

Strong increase in revenues and earnings

Comments:

• FX adjusted revenue increase of 10.0%
• EPS increase of 28.7% to €2.29
• Investments of €19.8m; Free cash flow of €20.8m

Especially equipment sales drove the revenue increase

in €m
Rounding differences possible	2016	2015	Change	in %
Equipment & Service	319.3	290.2	+29.1	+10.0
Chemicals	40.5	37.6	+2.9	+7.7
Operations & other	13.0	13.1	-0.1	-0.8
Total	372.8	340.9	+31.9	+9.4

5 | WashTec | Conference Call | March 22, 2017

All segments with increase in revenue and operating income vs. 2015

Rounding differences possible, consolidation effects not included

Q4 2016: best quarter in WashTec's history

7 | WashTec | Conference Call | March 22, 2017

Significantly improved results and ambitious targets for 2017

	2016	2015	Aim 2017
Revenue	372.8	340.9	Grow significantly above 6%
Gross margin	223.0 (59.8 %)	205.1 (60.2 %)	Higher equipment share
Personnal expenses	(122.9) [33.0 %]	(113.2) [33.2 %]	Grow below revenue performance
Other operating expenses	(53.2) [ 14.3 %]	(50.6) [14.8 %]	Grow below revenue performance
EBITDA	53.4	46.1
Depreciation	(9.4)	(9.6)	Increase due to investments
EBIT	44.1 [11.8 %]	36.4 [10.7 %]	Absolute and %- increase
Financial result	(0.4)	(0.5)
EBT	43.6	35.9
Tax expenses	(13.1)	(11.4)	Slightly lower tax rate
	30.6	24.6
Net profit
EPS	2.29	1.78

Still a solid balance sheet structure

Dec. 31, 2016	Dec. 31, 2015
218.1	190.0
42.3	42.3
87.4	80.3	Equity ratio 40.1%
4.5	1.9	Only slight increase despite dividend payment and higher working capital
39.9	32.9
91.5	78.1	Higher inventories and A/R due to revenue increase
(19.1)	(6.7)	Extension Grebenau, customer center, fleet, production tools
20.8	26.2

2016 – another successful year for our shareholders

Comments:

• Inclusion into SDAX per March 2016 and continuous higher trade volumes
• Successful smaller placements
• Intensified roadshow activities and conferences in Germany, France, UK and USA

WashTec is on a successful way and confident for 2017

The strategic path is defined: Aim 2017

Functional & regional Excellence

Innovation

Growth

Leadership & Employees

Group:

• Revenue: Significantly above 6% vs. 2016
• EBIT: Proportionate increase
• Cash flow: Marked increase as a result of lower capital expenditure

All segments:

Substantial increase in revenues and earnings

Financial calendar

March 22, 2017	Publication of annual financial report, Augsburg
March 22, 2017	Annual Press Conference, Augsburg
March 28, 2017	Bankhaus Lampe Conference, Baden-Baden
May 03, 2017	Annual General Meeting, Augsburg
May 03, 2017	Publication of Q1 Report, Augsburg
July 28, 2017	Publication of H1 Report, Augsburg
September 19-21, 2017	Baader Bank Investment Conference, Munich
October 27, 2017	Publication of Q3 Report, Augsburg
November 27-29, 2017	Equity Forum, Frankfurt

Thank you for your questions

13 | WashTec | Conference Call | March 22, 2017

Backup: the shareholders

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 forward-looking information.