WashTec AG — Interim / Quarterly Report 2009

Nov 4, 2009

Q32009 Report on the Period from January ¹ to September 30, ²⁰⁰⁹

Unaudited translation for convenience purposes only

Positive net income, equipment sales still below prior year:

• Revenues after three quarters at €186.4m (–12.2%), decline in third quarter at –10.7%
• Operating result (EBIT) at €7.2m (prior year: €19.3m)
• Operating EBIT margin (adjusted for non-recurring effects) at 4.5% (prior year: 9.3%)

		Jan 1 to	Jan 1 to	Change
			Sep 30, 2009 Sep 30, 2008
Revenues	€m	186.4	212.3	–25.9
EBITDA	€m	14.0	24.9	–10.9
EBIT	€m	7.2	19.3	–12.1
EBIT adjusted for
non-recurring effects	€m	8.4	19.7	–11.3
EBT	€m	5.3	17.1	–11.8
Employees as of Sep 30		1,564	1,565	–1
Earnings per share*	€	0.13	0.73	–0.60
Net cash flow	€m	12.9	16.3	–3.4
Purchase of PP+E	€m	–4.9	–4.5	0.4

* diluted = basic, average number of shares: Sep 30, 2009: 13,976,970; Sep 30, 2008: 14,998,926

Interim Management Report (unaudited)

1. Results of operation, financial position and net assets

The WashTec Group's revenues reached €186.4m after the first three quarters of 2009. This corresponds to a decline of 12.2% compared to the prior year (third quarter – 10.7% following –13.0% at the half-year mark). The decline continues to be caused primarily by fewer equipment sales, which fell by 20.5% (third quarter –17.6% following – 22.1% at the half-year mark). The service, chemicals and operations revenues grew slightly (+0.8%) primarily due to the acquisition in the wash chemicals area in May 2008 and remained stable in the third quarter (0.0% in the third quarter following +1.1% at the half-year mark).

Due to the lower equipment sales, the operating result (EBIT) declined by €12.1m to €7.2m (prior year: €19.3m). Adjusted for non-recurring effects related to write-downs of receivables and severance payments (€1.2m), the operating result was €8.4m. This represents an EBIT margin of 4.5%. In the third quarter (stand-alone), the EBIT margin equaled 8.2%, compared to 10.3% in the prior year.

Despite of the lower revenues, the net operating cash flow totaled €12.9m, which is only €3.4m below prior year's figure (prior year: €16.3m).

Business performance in the first three quarters of 2009

Business performance in the third quarter shows that WashTec has a solid business model and is able to achieve positive results even in a year of economic crisis. This is due to the stable revenues in the areas of service, chemicals and operations business.

• Percentage decline in revenues reduced
• Continued stable service, operations and wash chemicals business
• Stable operating cash flow

WashTec continues to expand the operations business, where sites are being operated on behalf of and for the account of our customers. In the third quarter, additional sites have been opened and existing sites have been renovated and updated.

The chemicals business also developed favorably. The new polishing wax ShineTecs, which protects the car paint and at the same time improves its shine, was successfully tested at various sites.

In the equipment area, the machines introduced during the automechanika 2008 and in the beginning of 2009 in the USA, continue to be very well received by the market. Additionally, the new self service jet washes have received a lot of interest during the last months in Europe.

Due to the market-driven decline in sales, cost-cutting measures have had a high priority. This includes the further expansion of purchasing and manufacturing activities in the Czech Republic and China. Both subsidiaries are developing according to plan, with the aim to supply the production sites in Augsburg and Denver with components.

As already described as an addendum to the 2009 half-year report, the company cancelled the previously repurchased treasury shares (approximately 1.2m shares or 8.1% of the subscribed capital). The subscribed capital of WashTec AG continues to equal €40m but is now divided into 13,976,970 shares.

1.1 Economy and market

Overall economy

All markets worldwide continue to be affected by the financial and economic down-turn. The ifo business climate survey for the European area, a survey of experts regarding the global economy, has brightened further in September, but nevertheless recognizes that »… by far the greater number of firms still assess the business situation as poor ….« In assessing ongoing development in the coming six months, »…there is now nearly a balance between pessimists and optimists.« (Source: ifo press release dated September 24, 2009). Also, according to the assessment of the German Institute for Economic Research (Deutsches Institut für Wirtschaftsforschung, »DIW«), »[…] the economic recovery is still not stable, and the growth rate remains as a whole modest […]« (Source: DIW 2009 Economic Forecast [DIW-Konjunkturprognose 2009]: press release dated October 12, 2009).

The car washing business remains profitable at most locations, reporting stable wash figures. Nevertheless, difficulties in securing financing as well as the uncertain overall outlook have led to delays in investment in new car wash equipment. This has affected, above all, smaller chains and individual operators as well as other customer groups such as car dealerships and transportation companies. Among large customers such as multinational oil companies, which operate the majority of the installed bases in Europe, the decisions to replace equipment depend mostly on the age of the equipment and the investment budgets. Certain oil companies are, however, also implementing cost-cutting programs.

• Financing for operators still difficult
• Smaller chains, car dealerships and transportation companies mostly affected

Delays in investments continue

There are regional differences in the customers' reluctance to invest. The United States was strongly impacted as early as 2008, whereas Southern and Eastern Europe became affected in 2009. There are also differences between the individual countries with respect to the speed of the recovery of the markets. Thus, for example, the DIW is expecting a GNP growth rate of 1.3% in Germany for 2010 (compared to –5.1% for 2009), while a growth rate of merely 0.8% is being forecasted in the European area for 2010 (compared to –3.9% for 2009). (Source: Key data to the DIW-Konjunkturprognose 2009: press release dated October 12, 2009).

The developments in the US Dollar-Euro exchange rate had only a minor influence on the WashTec Group's operating business and earnings. Strong foreign exchange losses suffered by other currencies in relation to the Euro have, however, increased the local operators' costs in purchasing equipment.

Industry structure

The competition has not significantly changed compared to the situation described in the full-year management report for 2008. The European market is dominated by four major competitors, whereby WashTec – according to its own analyses – is the European market leader. The American market remains highly fragmented. Equipment revenues have declined for all suppliers due to the economic environment.

There have been no significant changes in technology.

1.2 Business and earnings situation

Revenues

As a result of the first-time application of IFRS 8, the segment reporting was adapted as of January 1, 2009. The segment reporting going forward will track the operational management reporting, as explained in more detail below.

Change of segment reporting due to first-time application of IFRS 8

Revenues for the first three quarters totaled €186.4m and were thereby €25.9m or 12.2% below prior year's level (prior year: €212.3m). Looking only at the third quarter of 2009, the year-onyear decline in revenues was 10.7% (revenues Q3 2009: €64.9m; revenues Q3 2008: €72.7m).

Revenues by region
in €m, IFRS	Jan 1 to Sep 30, 2009	Jan 1 to Sep 30, 2008	Jul 1 to Sep 30, 2009	Jul 1 to Sep 30, 2008
Germany	73.7	76.4	26.3	28.9
Rest of Europe	91.3	114.8	31.6	37.1
North America	18.4	16.4	6.0	5.5
Rest of the world*	3.0	4.7	1.0	1.2
Total	186.4	212.3	64.9	72.7

Revenues in the third quarter €7.8m or 10.7% below prior year

* primarily Asia and Australia

Revenues by segment
in €m, IFRS	Jan 1 to Sep 30, 2009	Jan 1 to Sep 30, 2008	Jul 1 to Sep 30, 2009	Jul 1 to Sep 30, 2008
Area »DACH«	78.1	80.2	28.8	29.8
Area »CEE«	5.5	10.1	1.3	4.3
Area »RoW«	98.6	116.9	33.8	36.7
Area »Others«	9.0	6.3	3.0	2.4
Consolidation	–4.8	–1.2	–2.0	–0.5
Total	186.4	212.3	64.9	72.7

Compared to the same period of the prior year, revenues in Germany declined by €2.7m to €73.7m. Wash chemical revenues and the operations business could only partially off-set the decline in equipment revenues.

Since 2009, the revenues generated in Germany are reported as a part of the »DACH« area [Germany (»D«), Austria (»A«), Switzerland (»CH«)]. As of September 30, revenues totaled €78.1m and were therefore €2.1m below the prior year figure.

In connection with the segment reporting, the revenues and results of AUWA-Chemie GmbH, WashTec Financial Services GmbH and WesuRent Carwash Marketing GmbH are reported within the »Others« area. In this area, revenues rose by €2.7m to €9.0m.

Since the second quarter of 2009, revenues in Central and Eastern Europe (»CEE« area) have declined significantly. As at the end of the third quarter, revenues equaled €5.5m (prior year: €10.1m).

Revenues in the rest of the world (»RoW« area) decreased from €116.9m to €98.6m. Revenues in North America, which are included in the »RoW« area, were €2.0m above prior year (prior year: €16.4m). In US Dollar terms, revenues were on prior year level (USD25.0m, prior year: USD25.0m).

Revenues by products
in €m, IFRS	Jan 1 to Sep 30, 2009	Jan 1 to Sep 30, 2008	Jul 1 to Sep 30, 2009	Jul 1 to Sep 30, 2008
New equipment	103.1	129.7	37.4	45.4
Spare parts, service	61.7	63.9	20.7	21.3
Used equipment	2.6	2.5	1.1	0.9
Chemicals	12.7	10.7	3.6	3.4
Financial Services, operations	6.3	5.5	2.1	1.7
Total	186.4	212.3	64.9	72.7

New equipment revenues continue to decline. In the third quarter, revenues decreased by €45.4m to €37.4m. The decline in the third quarter (–17.6%) was smaller than the revenue decline in the first half of the year (H1 2009: –22.1%). For the first three quarters, revenues in the Service area fell by €2.2m to €61.7m. In 2008, service revenues included special gas station renovation projects. Excluding these revenues, service revenues were slightly below prior year.

The WashTec Group's revenues from the chemicals business rose from €10.7m in the prior year to €12.7m.

Revenues by products show that the decline continues to be primarily caused by lower equipment sales.

As of September 30, the order backlog was still below prior year level.

Order backlog as of September 30 still below prior year level

Earnings
in €m, IFRS	Jan 1 to Sep 30, 2009	Jan 1 to Sep 30, 2008	Jul 1 to Sep 30, 2009	Jul 1 to Sep 30, 2008
EBITDA	14.0	24.9	7,6	8.9
EBIT	7.2	19.3	5,3	7.1
EBIT adjusted
for non-recurring effects	8.4	19.7	5,3	7.5
EBT	5.3	17.1	4,6	6.5

Lower EBITDA and EBIT caused by decline in equipment revenues

EBITDA decreased to €14.0m and was therefore €10.9m lower than the same period of the prior year (prior year: €24.9m). This figure includes non-recurring effects resulting from write-downs of receivables and severance payments totaling €1.2m.

Gross profit fell to €108.9m due to the lower equipment revenues (prior year: €121.8m). As of the end of the third quarter, the gross profit margin (from revenues) had increased by 1.0 percentage points to 58.4% (prior year: 57.4%), mainly driven by the higher share of Service.

Personnel expenses: reduced working hours off-set wage increases

Personnel expenses equaled €66.5m and were on prior year level (prior year: €66.3m). Wage increases, the whole-year effect resulting from the acquisition in the wash chemicals area and severance payments were off-set by less employees and a reduction of working hours.

Other operating expenses (including other taxes) were reduced considerably by €2.3m and equaled €28.3m (prior year: €30.6m). When excluding write-downs, the other operating expenses were lowered by 10.8% mostly as a result of fewer temporary employees.

Based on investments made in the Supply Chain area as well as in the operations business, depreciation and amortization increased by €1.2m to €6.8m (prior year: €5.6m).

The operating result (EBIT) declined to €7.2m (prior year: €19.3m). After adjusting for non-recurring effects of €1.2m, EBIT equaled €8.4m. The adjusted EBIT margin for the first 9 months was 4.5% (prior year: 9.3%). In the third quarter, the adjusted EBIT margin was 8.2% (prior year: 10.3%).

Net finance costs were further reduced from €2.2m to €1.9m due to lower bank liabilities.

EBIT by segments

Total	7.2	19.3	5.3	7.1
Consolidation	–2.1	0.0	–0.5	0.0
Area »Others«	1.9	1.0	0.7	0.2
Area »RoW«	3.1	10.1	2.8	3.4
Area »CEE«	0.4	1.5	0.0	0.6
Area »DACH«	3.9	6.7	2.3	2.9
in €m, IFRS	Jan 1 to Sep 30, 2009	Jan 1 to Sep 30, 2008	Jul 1 to Sep 30, 2009	Jul 1 to Sep 30, 2008

As of the end of the third quarter, earnings before taxes (EBT) were €5.3m (prior year: €17.1m). The result for the period after deduction of taxes declined from €11.0m to €1.8m. It should be noted that due to the current market situation, in some countries no deferred tax assets are recognized on loss carry forwards.

EBT at €5.3m as of the end of the third quarter 2009

Earnings per share (diluted = undiluted) totaled €0.13 (prior year: €0.73).

Balance sheet

Assets in €m, IFRS	Sep 30,	Dec 31,
	2009	2008
Non-current assets	116.8	118.9
thereof intangible assets	67.3	68.7
thereof deferred tax assets	8.1	10.0
Current assets	83.7	83.9
thereof inventories	34.1	34.6
thereof trade receivables	33.7	39.7
thereof other assets	3.4	3.0
thereof cash and cash equivalents	12.3	6.4
thereof tax receivables	0.2	0.2
Total assets	200.5	202.8

Due to the use of loss carry forwards, the deferred tax assets fell from €10.0m as of the end of 2008 to €8.1m as of Sep 30, 2009.

As a result of lower revenues and write downs, trade receivables declined to €33.7m (December 31, 2008: €39.7m).

Cash and cash equivalents rose in the third quarter to €12.3m driven by a strong cash flow (December 31, 2008: €6.4m).

Balance sheet total declined from €202.8m as of the end of 2008 to €200.5m as of September 30, 2009.

Equity and liabilities in €m, IFRS	Sep 30,	Dec 31,
	2009	2008
Equity	81.7	79.1
Liabilities to banks	44.7	45.4
Other liabilities + provisions	66.7	71.8
thereof trade payables	8.8	8.8
thereof provisions	19.2	19.9
Deferred income	7.4	6.5
Total equity and liabilities	200.5	202.8

Equity ratio as of Sep 30, 2009: 40.7%

As of September 30, 2009, equity equaled €81.7m and was therefore €2.6m higher than at the end of 2008. Due to the income and expenses recognized directly in equity, the change in equity capital does not match the result for the period. The equity ratio rose to 40.7%.

Liabilities to banks increased from December 31, 2008 by €0.7m to €44.7m. Net financial liabilities, including cash and financial lease liabilities, decreased from €46.9m to €41.5m.

Trade payables remained unchanged at €8.8m.

Provisions decreased from €19.9m as of December 31, 2008 to €19.2 due to pay-outs.

Cash flow statement

Cash flows from operating activities (net cash flow) decreased to €12.9m in the first three quarters of 2009 mainly due to the lower results (prior year: €16.3m).

Cash flow from investment activities totaled €4.8m (prior year: €6.3m; including the sale of un-used real estate). The focus of investment in 2009 was on Supply Chain activities in the Czech Republic, IT systems and developing a new generation of rollover washing systems in the USA.

Compared to the same period of the prior year, cash and cash equivalents as of September 30, 2009 increased by €5.0m.

Employees

Number of employees at the WashTec Group as of Sep 30, 2009 at 1,564

In recent years, WashTec has carried out some of its final assembly with temporary workers. The decline in sales was off-set by reducing these workers and the working hours of WashTec employees. Therefore the WashTec Group's employee numbers were only slightly reduced. Since December 31, 2008, new employees were also hired in the areas of Service (USA) and Supply Chain (Czech Republic and China). Since December 31, 2008, the number of employees rose by 15 to1,564. Compared to September 30, 2008, the number of employees had been reduced by one.

WashTec share

The WashTec share price has increased from €5.89 as of December 31, 2008, to €7.38 as of September 30, 2009 (+25.3%). Thus, the share's performance tracked the development of the SDAX (+24.8%).

Shareholder structure

In the third quarter, »Investmentaktiengesellschaft für langfristige Investoren TGV« and »EQMC Europe Development Capital Fund« gave notice that they had exceeded the 5% and 15% reporting thresholds, respectively.

During the third quarter, the Company's management stayed in contact with journalists and the financial community. In connection with the publication of its financial reports, the Company held several conference calls for analysts and investors. One-on-one conferences with various institutional investors were conducted during investor visits in Augsburg and during a road show in Edinburgh. In September, WashTec also made a presentation at the HVB German Investment Conference.

WashTec is currently covered by HVB Unicredit, HSBC Trinkaus & Burkhardt and MM Warburg. All analysts have issued »buy« recommendations for the Company's shares.

All analysts continue to issue »buy« recommendations

Shareholding in percentage	Sep 30, 2009
EQMC Europe Development Capital Fund plc	16.2
Kempen Capital Management NV	11.1
Sterling Strategic Value Ltd. (incl. IED)	10.0
InvestmentAG für langfristige Investoren TGV	5.4
Lazard Frères Gestion S.A.S.	5.0
Cycladic Capital Management LLP.	4.7
Paradigm Capital Value Fund	3.8
Free float	43.8

Source: Notices made pursuant to the German Securities Trading Act (»WpHG«)

Events after the end of the reporting period

No significant events occurred after the end of the reporting period.

The decline in revenues compared to 2008 continues to decrease; adjusted EBIT margin for 2009 expected at 5 to 6%.

The car wash counts per site (year-to-date) show that the economic environment so far had no major impact on the car washing behavior. The car wash business continues to be profitable at most sites.

The financial and economic down-turn has led, however, to difficulties in financing equipment among various customer groups and in certain sub-markets. In addition, investments are being delayed due to the uncertain economic outlook.

The company is expecting that the decline in revenues will continue in the fourth quarter of 2009 and expects a decline in revenues between 10 and 11% for the full year with an adjusted EBIT margin between 5 and 6%.

It is not expected that the markets will recover substantially in 2010. Difficulties in financing equipment and the uncertain economic outlook will remain and therefore the delay of investments will probably continue. As a result, we do not expect a significant increase in revenues in 2010. The measures taken to increase efficiency and reduce costs however, should lead to an increase in the overall results next year.

In the mid-term it is planned to return to the margin targets of prior years. The exact timing will also depend on the recovery of the overall economy.

2. Forecast 3. Opportunities and risks related to future developments

A description of the risk management in the WashTec Group is contained in the 2008 annual report. This report contains a description of all significant opportunities and risks for the Group. There were no major changes in the opportunities and risks presented in the 2008 annual report and the 2009 half-year report.

The risks posed by the financial and economic down-turn listed in these reports, could increase the price pressure if the down-turn intensifies and investment restrains increase. As a result, it could be more difficult to meet certain »financial covenants« such as EBITDA/net financial debt. Such a development is not expected based on the anticipated course of business.

Consolidated Income Statement

The notes to the consolidated statements form an integral part of the consolidated financial statements. Rounding differences are possible.

	Jan 1	Jan 1	July 1	July 1
	to Sep 30	to Sep 30	to Sep 30	bis Sep 30
	2009	2008	2009	2008
	€	€	€	€
Revenues		186,441,307 212,317,680 64,968,480 72,697,108
Other operating income	2,153,751		2,413,672 1,239,262	515,919
Other capitalized development costs	537,659	1,071,449	93,720	392,276
Change in inventories of work in process	–2,271,065	–822,507		–322,797 –3,025,892
Total		186,861,652 214,980,294 65,978,665 70,579,411
Cost of materials
Cost of raw materials, consumables and supplies
and of purchased merchandise		64,167,603 78,745,979 22,000,070 24,247,580
Cost of purchased services		13,828,297 14,442,679	5,135,178	4,841,598
		77,995,900 93,188,658 27,135,248 29,089,178
Personnel expenses		66,479,159 66,268,105 21,863,616 21,860,167
Amortization, depreciation and impairment of tangible assets
and property, plant and equipment	6,797,203	5,617,879	2,354,545	1,857,184
Other operation expenses		27,874,486 30,118,214		9,163,545 10,510,925
Other taxes	475,243	460,582	147,506	150,426
Total operating expenses		179,621,991 195,653,438 60,664,460 63,467,880
EBIT		7,239,661 19,326,856	5,314,205	7,111,531
Other interest and similar income	91,730	888,953	11,336	253,444
Interest and similar expenses	2,027,124	3,107,575	709,864	905,065
Financial result	–1,935,394	–2,218,622	–698,528	–651,621
Result from ordinary activities/EBT		5,304,267 17,108,234	4,615,677	6,459,910
Income taxes		–3,463,564 –6,105,205 –1,894,819 –2,814,873
Consolidated profit for the period		1,840,703 11,003,029	2,720,858	3.645,037
Average number of shares		13,976.970 14,998.926 13,976.970 14,908.797
Earnings per share (basic = diluted)	0.13	0.73	0.19	0.24

Consolidated	Assets	Sep 30, 2009	Dec 31, 2008
		€	€
Balance Sheet	Non-current assets			Equity and liabilities
The notes to the consolidat	Property, plant and equipment		41,153,441 39,802,680
ed statements form an inte	Goodwill		56,923,094 57,613,241
gral part of the consolidated	Intangible assets		10,337,693 11,094,942
financial statements.	Financial assets	0	18,731
Rounding differences are	Tax receivables	321,930	321,930
possible.	Other assets	24,784	29,284
	Deferred tax assets		8,091,820 10,016,192
				Non-current liabilities
	Total non-current assets		116,852,762 118,897,000
	Current assets			Current liabilities
	Inventories		34,123,220 34,565,503
	Current receivables		33,751,949 39,740,656
	Tax receivables	182,267	225,247
	Other assets	3,357,917	2,972,558
	Cash and bank balances	12,272,411	6,406,677
	Total current assets		83,687,764 83,910,641
	Total assets		200,540,526 202,807,641

Equity and liabilities	Sep 30, 2009	Dec 31, 2008
	€	€
Equity and liabilities
Equity		40,000,000 40,000,000
Subscribed capital	2,105,264	2,105,264
Capital reserves		45,927,987 45,496,959
Treasury shares		–9,464,546 –9,464,546
Other reserves		–1,726,992 –2,077,716
Profit/loss carryforward		5,156,524 –10,158,374
Consolidated profit for the period		1,840,703 15,314,922
		81,733,676 79,111,245
Non-current liabilities
Interest-bearing loans		37,893,913 36,992,916
Finance leasing	6,999,852	5,998,279
Provisions for pensions	6,369,033	6,199,503
Other non-current provisions	4,137,462	4,799,115
Other non-current liabilities	1,603,224	1,532,799
Total non-current liabilities		57,003,484 55,522,612
Current liabilities
Interest-bearing loans	6,780,830	8,374,847
Finance leasing	2,093,330	1,930,451
Prepayments on orders	4,228,640	7,305,178
Trade payables	8,754,503	8,779,005
Other liabilities for taxes and levies	3,053,181	4,876,780
Other liabilities for social security	797,896	726,730
Tax provisions	2,249,275	4,458,745
Other current liabilities		17,760,664 16,256,240
Other current provisions	8,712,473	8,929,937
Deferred income	7,372,574	6,535,871
Total current liabilities		61,803,366 68,173,784
Total equity and liabilities		200,540,526 202,807,641

Consolidated Cash Flow Statement

The notes to the consolidated statements form an integral part of the consolidated financial statements. Rounding differences are possible.

€k	Jan 1 to	Jan 1 to
	Sep 30 2009	Sep 30 2008
EBT	5,304	17,108
Adjustments to reconcile profit before tax to net cash flows
not affecting cash
Amortisation, depreciation and impairment of non-current assets	6,797	5,618
Gain/loss from disposals of non-current assets	–31	–684
Share-based payments expense	431	662
Other gains/losses	890	–2,156
Interest income	–92	–889
Interest expense	2,027	3,108
Movements in provisions	–883	–1,952
Changes in net working capital
Increase in trade receivables	5,243	5,928
Increase/decrease in inventories	468	2,085
Increase/decrease in trade payables	–110	–4,600
Changes in other net working capital	–3,583	–4,069
Income tax paid	–3,585	–3,897
Net cash flows from operating activities	12,876	16,262
Purchase of property, plant and equipment (without finance leasing)	–4,936	–4,490
Proceeds from sale of property, plant and equipment	171	2,016
Acquisition of a subsidiary, net of cash acquired	0	–3,791
Net cash flows used in investing activities	–4,765	–6,265
Raising of long-term loans	4,045	0
Repayment of non-current liabilities to banks	–3,948	–4,383
Share buy-back	0	–2,524
Cash inflow from financial instruments	0	1,862
Interest received	92	889
Interest paid	–1,776	–2,813
Repayment of non-current liabilities from finance leases	–1,445	–1,818
Net cash flows used in financing activities	–3,032	–8,787
Net decrease in cash and cash equivalents	5,079	1,210
Net foreign exchange difference	938	–79
Cash and cash equivalents at 1 January	6,246	5,927
Cash and cash equivalents at 30 September	12,263	7,058
Cash and cash equivalents	12,272	7,262
Current bank liabilities	–9	–204

Statement	€k	Subscribed	Capital	Treasury	Other	Exchange	Loss carried	Total
		capital	reserve	shares	reserves	effects	forward
of Changes in	As of 1 January 2008	40,000	44,618	–604	–797	–374	–10,159	72,684
Consolidated	Income and expenses recognized directly in equity				–189	–249		–438
Equity	Taxes on transactions recognized directly in equity				90			90
	Share-based payment		662					662
	Purchase of own shares			–2,524				–2,524
	Consolidated profit for the period						11,003	11,003
	As of 30 September 2008	40,000	45,280	–3,128	–896	–623	844	81,477
	As of 1 January 2009	40,000	45,497	–9,464	–1,265	–813	5,156	79,111
The notes to the consolidat ed statements form an inte gral part of the consolidated financial statements. Rounding differences are possible.	Income and expenses recognized directly in equity				–3	353		350
	Taxes on transactions recognized directly in equity				1			1
	Share-based payment		431					431
	Purchase of own shares							0
	Consolidated profit for the period						1,841	1,841
	As of 30 September 2009	40,000	45,928	–9,464	–1,267	–460	6,997	81,734

Statement		Jan 1 to	Jan 1 to
		Sep 30 2009	Sep 30 2008
of Comprehen sive Income		€k	€k
	EBT	1,841	11,003
The notes to the consolidat
ed statements form an inte	Changes in the fair value of financial instruments used for hedging purposes recognized under equity	484	–874
gral part of the consolidated	Adjustment item for the currency translation of foreign subsidiaries and currency changes	353	–249
financial statements.	Exchange differences on net investments in subsidiaries	–356	198
Rounding differences are	Actuarial gains/losses from defined benefit obligations and similar obligations	–131	487
possible.	Deferred taxes on changes in value taken directly to equity	1	90
	Valuation gains/losses recognized directly in equity	351	–348
	Total income and expense and valuation gains/losses recognized directly in equity	2,192	10,655

Notes to the interim consolidated financial statements of WashTec AG (IFRS) for the period of January 1 through September 30, 2009

General Dicslosures

1. Information on the Company

The ultimate parent company of the WashTec Group is WashTec AG and is recorded in the Commercial Register for the City of Augsburg under registration number HRB 81.

The Company's registered offices are located at Argonstrasse 7 in 86153 Augsburg, Germany.

The Company's shares are publicly traded.

The consolidated financial statements are reported in Euro. Amounts are rounded to the nearest Euro and shown either in millions of Euro (€m) or in thousands of Euro (€k).

The purpose of WashTec AG is to acquire, hold and sell equity investments in other entities and to assume the function of a holding company for the WashTec Group.

The purpose of the WashTec Group also comprises the development, manufacture, sale and servicing of car wash products as well as leasing and services related thereto and financial solutions required in order to operate car wash systems.

2. Accounting and valuation policies

Principles in preparing financial statements

The consolidated quarterly financial report for the period January 1 through September 30, 2009 was prepared in accordance with »IAS 34 Interim Financial Reporting«.

The consolidated interim report does not include all explanations and information required for the financial statements for the fiscal year and should be read in connection with the consolidated financial statements for the period ending December 31, 2008.

Significant accounting and valuation methods

The accounting and valuation methods applied when preparing the consolidated quarterly report comply with the methods used when preparing the consolidated financial statements for the fiscal year ending December 31, 2008, except for the tax calculation and the segment reporting under IFRS 8.

The tax calculation for quarterly reports is done by multiplying the result with the anticipated applicable annual tax rate.

IFRS 8 – Operating Segments replaces IAS 14 and must be applied to reporting periods that begin on or after January 1, 2009. Under IFRS 8, the identification of reportable operating segments is based on the »management approach«. According to this approach, the external segment reporting is done on the basis of an intra-group organization and management structure as well as internal financial reports filed with the »chief operating decision maker« (Management Board). IFRS 8 requires that entities report their financial and descriptive information about their reportable segments. Reportable segments are operating segments or aggregations of operating segments, for which separate financial information is available, which is routinely reviewed by the highest decision-making bodies of the entity in order to assess business performance and decide which resources to use.

At the WashTec Group, the segmentation under the management approach is done according to sales regions. In this respect, sales are distinguished between the »DACH« area (Germany, Austria, Switzerland), the »CEE« area (Eastern Europe) and the »RoW« area (Rest of World), and the supporting units are aggregated under the segment known as »Other Operating Entities« (»Others«). This segment includes the legally independent entities of WesuRent Carwash Marketing GmbH, WashTec Financial Services GmbH and AUWA-Chemie GmbH, which support the other areas in preparing the markets with respect to WashTec products and services.

The individual segments are governed on the basis of the operating result achieved. The segment results are based on the directly attributable income and expenses and on cost-sharing from intersegment functions. The totals from the reportable segments are equal to the Group result following consolidation.

Moreover, the following standards and interpretations must be applied with respect to fiscal years, which begin on or after January 1, 2009. The amendments to these standards have no effect on the net assets, financial position and earnings of the WashTec Group:

• IAS 1 Amendments to IAS 1 Presentation of Financial Statements (revised September, 2007)
• IAS 23 Amendments to IAS 23 Borrowing Costs (revised September, 2008)
• IFRS 2 Amendments to IFRS 2 Share-based Payments: Vesting Conditions and Cancellations (revised January, 2008)
• IFRIC 16 Hedges of Net Investment in Foreign Operations
• IFRS Improvements to IFRS

Consolidated Group

The newly formed subsidiaries, WashTec Car Cleaning Equipment (Shanghai) Co. Ltd., China, and WashTec Cleaning Technology s.r.o., Czech Republic, have been included in the WashTec consolidated group as of the beginning of the current fiscal year.

Balance sheet/Equity

The registered share capital of WashTec AG was €40m on September 30, 2009 and is divided into 13,976,970 shares.

Earnings per share

The earnings per share are calculated by dividing the net consolidated result by the number of shares:

		Sep 30, 2009 Sep 30, 2008
Net result	€1.8m	€11.0m
Number of shares	13,976,970	14,998,926
Earnings per share	€0.13	€0.73

Contact

86153 Augsburg www.washtec.de

WashTec AG Phone +49 821 5584-0 Argonstrasse 7 Fax +49 821 5584-1135 Germany washtec@washtec.de

Financial Calendar

Equity Forum November 9, 2009; 12:45, Room London Annual Report 2009 March 2010 Annual General Meeting 2010 May 2010