WashTec AG — Interim / Quarterly Report 2013

Nov 6, 2013

Q3 2013

Group Management Report on the period from January 1 to September 30, 2013 Unaudited translation for convenience purposes only

Positive business development in third quarter: revenues as of September 30, 2013 at € 218.3m with EBIT at € 8.9m

• Revenues at € 218.3m (prior year: € 217.1m) following positive business development in the third quarter; EBIT at € 8.9m (prior year: € 8.2m)
• Net cash flow € 12.3m (prior year € 15.6m)
• Positive trend in North America continues

Rounding-off differences possible		Jan 1 to	Jan 1 to	Change
			Sept 30, 2013 Sept 30, 2012*	absolute
Revenues	€m	218.3	217.1	+1.2
EBITDA	€m	16.3	15.5	+0.8
EBIT	€m	8.9	8.2	+0.7
EBIT margin	%	4.1	3.8	+0.3
EBT	€m	8.0	6.5	+1.5
Employees per reporting date		1,686	1,663	+23
Average number of shares		13,934,714	13,971,515	–36,801
Earnings per share**	€	0.40	0.23	+0.17
Net cash flow	€m	12.3	15.6	–3.3
Capital expenditures	€m	4.3	3.7	+0.6

* Comparative figures restated per IAS 8, see note 3 in the notes to the consolidated financial statements.

** Diluted = undiluted.

Rounding-off differences possible	Jul 1 to	Jul 1 to	Change
		Sept 30, 2013 Sept 30, 2012*	absolute
Revenues €m	78.4	74.5	+3.9
EBITDA €m	8.6	4.8	+3.8
EBIT €m	6.1	2.4	+3.7
EBIT margin %	7.8	3.2	+4.6
EBT €m	5.8	1.6	+4.2
Average number of shares	13,932,312	13,971,515	–39,203
Earnings per share** €	0.34	0.02	+0.32

* Comparative figures restated per IAS 8, see note 3 in the notes to the consolidated financial statements.

** Diluted = undiluted.

Interim Group Management Report for the Period from January 1 to September 30, 2013

1. Results of operation, financial position and net assets . 4
1.1 Business and earnings situation . 6
1.2 Net assets 9
1.3 Financial position . 11
1.4 Miscellaneous . 11

1. Forecast . 13

Interim Condensed Consolidated Financial Statements for the Period from January 1 to September 30, 2013

Consolidated Income Statement .	14
Consolidated Statement of Comprehensive Income .	15
Consolidated Balance Sheet .	16
Consolidated Cash Flow Statement .	17
Statement of Changes in Consolidated Equity .	18

Notes to the Interim Condensed Consolidated Financial
Statements of WashTec AG (IFRS) for the Period from
January 1 to September 30, 2013 19

Interim Group Management Report

1. Results of operation, net assets and financial position

General conditions in Core Europe unchanged, positive development in North America continues, order backlog below prior year

General conditions

The economic situation in Germany appears robust so far this year, while some European countries continue to struggle with high national debt and unemployment. Even though the third quarter is showing more positive economic signals for Europe compared to the first half of the year, a definite recovery is still not apparent. Thus, while the economic climate for the euro area improved in the third quarter according to Ifo (Institut für Wirtschaftsforschung, Institute for Economic Research), it is still far below its long-term average value. Furthermore, the growth of the Chinese economy as an engine of growth remained below expectations. In contrast, with robust consumer demand and investment demand, the economy in North America continues to show signs of recovery in the third quarter. A new budget dispute in the USA could affect this positive development.

The market for carwash equipment in Europe did not change in the third quarter. Specifically, current general conditions in Central Europe are hurting WashTec's business. Some customers groups are delaying approval of capital expenditure budgets. In North America, the market for carwash equipment seems poised for stable growth. In addition, Eastern Europe and Asia are registering sustained growth, which started out from a generally lower level.

The competitive environment is in general consistent with the situation described in the 2012 Group Management Report. The competitive landscape in Europe as a consolidated market remains high. The market in North America on the customer and supplier side is more fragmented, and may undergo a consolidation in the mid-term. In Asia as well as in Southern and Eastern Europe, numerous smaller competitors are active, some of whom operating on a regional basis only.

No significant changes in technology have occurred nor are any foreseeable.

In spite of continued difficult general conditions overall, WashTec, with revenues of € 218.3m, was able to slightly increase revenues by € 1.2m after the first three quarters of 2013 compared to the prior year (€ 217.1m). This resulted from a positive business development in the third quarter which was able to offset the revenue decline in the previous quarters.

At 59.0%, the gross profit rate was slightly above the prior year level (58.2%), primarily due to a changed product and regional mix, with higher chemical revenues as well as continuos efficiency improvements in the areas of materials and related services. Personnel costs rose by € 2.8m from € 76.4m to € 79.2m primarily due to scaled wage increases. It should be noted here that the prior year figures included the effect of writing-back certain restructuring provisions in the amount of € 1.8m. The operating costs (miscellaneous operating expenses – other operating income and other capitalized development costs) were able to be reduced year-over-year by approximately € 1.0m.

EBIT rose from € 8.2m in the prior year to € 8.9m. When comparing to the prior year, it must be noted that pursuant to IAS 8, the results in the prior year need to be adjusted upward by € 1.1m due to a revaluation of the phased retirement programs.

EBIT rose from € 8.2m to € 8.9m; EBIT margin increases from 3.8% to 4.1%

Due to weak order intake in the third quarter compared to the prior year, the order backlog of the group was below the comparative fi gure of the prior year as of the end of September.

Analysis of the strategy concluded

Strategic analysis is being conducted Continuation of positive business development in North America

In the third quarter, the analysis of the strategy which will be approved as part of the mid-term planning was concluded. During the course of the strategic review, an in-depth analysis was conducted on the product portfolio, market and customer developments as well as on WashTec's current positioning. The fundamental strategic positioning of WashTec was largely validated. WashTec sees itself as the preferred global »partner of choice« for automated car wash.

The strategy is based on the pillars of »operational excellence« and »growth«.

The operational excellence strategy will be implemented by way of individual strategic initiatives, which will be managed as projects under the categories of Bottom Line, Top Line, Competitiveness and Quality. A special focus lies on defending and strengthening our market position in Core Europe with regard to revenue as well as earnings.

Furthermore, in the context of developing the strategy, the options for further growth are being investigated: focus regions are North America and China.

1.1 Business and earnings situation

Adjusted for foreign exchange effects, revenues of € 220.7m are € 3.6m over the prior year

Revenues by segment, Q1–Q3
in € m, IFRS	Jan 1 to	Jan 1 to	Change
(Rounding-off differences possible)		Sept 30, 2013 Sept 30, 2012	absolute
Core Europe	176.5	175.8	+0.7
Eastern Europe	10.1	9.7	+0.4
North America	34.7	33.7	+1.0
Asia/Pacific	8.7	8.3	+0.4
Consolidation	–11.7	–10.4	–1.3
Group	218.3	217.1	+1.2

Revenues by segment, Q3

in € m, IFRS	Jul 1 to	Jul 1 to	Change
(Rounding-off differences possible)		Sept 30, 2013 Sept 30, 2012	absolute
Core Europe	63.2	59.6	+3.6
Eastern Europe	2.5	4.3	–1.8
North America	12.5	11.5	+1.0
Asia/Pacific	3.3	3.4	–0.1
Consolidayion	–3.1	–4.3	+1.2
Group	78.4	74.5	+3.9

Revenues after the first three quarters of the year totaled € 218.3m and were € 1.2m or 0.6% above the prior year (€ 217.1m). This figure includes negative foreign exchange effects in the amount of € 2.4m, so that adjusted revenues were € 3.6m over the prior year value. In the third quarter of 2013, revenues rose year-over-year by 5.2% (Q3 2013: € 78.4m; Q3 2012: € 74.5m). Thus, as expected, the decline in revenues in the first two quarters of the fiscal year was able to be offset in the third quarter.

Revenues in Core Europe after the first nine months of 2013 were slightly above the level of the prior year. In the third quarter of 2013, which was stronger as expected, revenues compared to prior year increased by 6.0% to € 62.2m. Nevertheless, market development in Core Europe remains subdued; this applies particularly with respect to Germany and France. In total, revenues rose by € 0.7m to € 176.5m (prior year: € 175.8m); in spite of a slight increase in order intake in the third quarter of 2013, the order backlog at the end of the third quarter was below the prior year.

Following very positive revenue growth in the »Eastern Europe« segment in the first half of the year, revenue in the third quarter was below the prior year. Cumulatively, after the first three quarters of 2013, the region achieved revenues in the amount of € 10.1m (prior year: € 9.7m). Order intake and order backlog were below the prior year level at the end of the third quarter. When doing the comparison with the prior year it has to be taken into consideration that the prior year's revenue has been unusually high due to the order of a key account.

Business development in North America continued to be positive. Above all, as a result of the positive development of the direct business and key account business, WashTec in North America was able to slightly increase its revenues compared to the prior year. At

• The environment in Core Europe remains volatile
• Eastern Europe weaker following a strong first half of the year

€ 34.7m, this was higher than the prior year period (€ 33.7m). In US dollars, revenues after the three quarters amount to USD 45.7m (prior year: USD 43.3m). Order intake and order backlog were below the prior year level at the end of the third quarter.

At € 8.7m, revenues in the »Asia/Pacific« segment were slightly above the prior year level (€ 8.3m). The market in Australia, where the majority of the activity in this segment has taken place up to now, developed in a stable manner. Order intake and order backlog in the third quarter were below prior year. While revenues and order intake developed positively in China, these were starting out from a lower level since the market here is still in the early stages of development.

Revenues by product, Q1–Q3
in € m, IFRS	Jan 1 to	Jan 1 to	Change
(Rounding-off differences possible)		Sept 30, 2013 Sept 30, 2012	absolute
New and used equipment	118.2	118.9	–0.7
Spare parts, service	66.5	67.0	–0.5
Chemicals	24.0	22.3	+1.7
Operator business and others	9.6	8.9	+0.7
Total	218.3	217.1	+1.2

Revenues by product, Q3
in € m, IFRS	Jul 1 to	Jul 1 to	Change
(Rounding-off differences possible)		Sept 30, 2013 Sept 30, 2012	absolute
New and used equipment	45.7	42.2	+3.5
Spare parts, service	22.4	22.5	–0.1
Chemicals	7.0	6.8	+0.2
Operator business and others	3.3	3.0	+0.3
Total	78.4	74.5	+3.9

At € 118.2m, equipment revenues at the end of the first three quarters of 2013 were € 0.7m below the prior year (€ 118.9m). Revenues from »New and used equipment« declined slightly by € 0.5m to € 66.5m. Meanwhile, wash chemicals revenues developed very nicely and rose by 7.6% to € 24.0m (prior year: €22.3m). In »Operator business and others«, revenues were able to be increased – inter alia due to weather conditions – to € 9.6m above prior year (€ 8.9m).

Expenses and earnings

Earnings, Q1–Q3
in € m, IFRS	Jan 1 to	Jan 1 to	Change
(Rounding-off differences possible)		Sept 30, 2013 Sept 30, 2012*	absolute
Gross profit**	128.9	126.3	+2.6
EBITDA	16.3	15.5	+0.8
EBIT	8.9	8.2	+0.7
EBT	8.0	6.5	+1.5

* Comparative figures restated per IAS 8, see note 3 in the notes to the consolidated financial statements

** Revenues plus change in inventory less cost of materials

Earnings, Q3

in € m, IFRS	Jul 1 to	Jul 1 to	Change
(Rounding-off differences possible)		Sept 30, 2013 Sept 30, 2012*	absolute
Gross profit**	45.3	43.5	+1.8
EBITDA	8.6	4.8	+3.8
EBIT	6.1	2.4	+3.7
EBT	5.8	1.6	+4.2

* Comparative figures restated per IAS 8, see note 3 in the notes to the consolidated financial statements

** Revenues plus change in inventory less cost of materials

Gross profit (including changes in inventory) rose slightly from € 126.3m to € 128.9m. Due to ongoing efficiency measures as well as changes in the regional mix and product mix, the gross profit margin was able to be improved by 0.8% to 59.0%.

Gross profit margin improves to 59.0%

Personnel expenses

At € 79.2m, personnel expenses were significantly higher than the prior year level of€ 76.4m. It must be noted in this regard that the prior year value included an effect from write-backs of restructuring provisions in the amount of € 1.8m. The increased personnel costs are mainly attributable to scaled wage increases in Core Europe (particularly in Germany) as well as the expansion of sales structures in the segments »Eastern Europe« and »Asia/Pacific«. The personnel expense ratio (personnel expenses as a percentage of revenues) increased from 35.2% to 36.3%. increase to € 79.2m EBIT by segment, Q1–Q3

Other operating expenses (including other taxes) declined by € 2.0m to € 36.4m (prior year: € 38.4m). The cost savings result from smaller value adjustments on claims as well as the implementation of cost savings measures. In addition, it must be noted that expenses for participating in trade fairs were lower by € 0.5m compared to the prior year.

Other operating income (including other capitalized development costs), declined due to lower capitalized development costs from € 4.0m in the prior year to € 3.0m.

EBITDA increased from € 15.5m to€ 16.3m and was therefore € 0.8m higher than the prior year.

Depreciation and amortization was at prior year level and equaled € 7.4m.

EBIT increased to € 8.9m (prior year: € 8.2) and the EBIT margin was 4.1% (prior year: 3.8%).

Jan 1 to	Jan 1 to	Change
		absolute
8.3	9.3	–1.0
0.4	0.6	–0.2
0.6	–1.1	+1.7
–0.4	–0.8	+0.4
0.0	0.2	–0.2
8.9	8.2	+0.7
		Sept 30, 2013 Sept 30, 2012*

* Comparative figures restated per IAS 8, see note 3 in the notes to the consolidated financial statements

EBIT by segment, Q3

EBIT Jan 1 to Sept 30 in €m, IFRS

in € m, IFRS	Jul 1 to	Jul 1 to	Change
(Rounding-off differences possible)		Sept 30, 2013 Sept 30, 2012*	absolute
Core Europe	5.6	2.1	+3.5
Eastern Europe	0.1	0.3	–0.2
North America	0.5	0.1	+0.4
Asia/Pacific	0.1	–0.1	+0.2
Consolidation	–0.1	0.0	–0.1
Group	6.1	2.4	+3.7

* Comparative figures restated per IAS 8, see note 3 in the notes to the consolidated financial statements

* Comparative figures restated per IAS 8, see note 3 in the notes to the consolidated financial statements

EBIT increases by € 0.7m

The exchange rate development between the US dollar and the euro had basically no effects on the operational business. The effects on revenues and expense items roughly offset each other. The balance sheet date valuation of the assets and liabilities reported on the balance sheet in a foreign currency had a negative impact on earnings equal to –€ 0.4m as of September 30, 2013 (prior year:€ 0.0m).

The earnings in Core Europe were negatively impacted by the declining revenues and increased personnel costs as a result of scaled wage increases in Germany and France. Accumulated EBIT fell to € 8.3m (prior year:€ 9.3m). In the third quarter earnings were more than doubled from € 2.1m to € 5.6m due to higher revenues and an improved product mix.

In the »Eastern Europe« segment, EBIT declined compared to the prior year to € 0.4m (prior year: € 0.6m) mainly as a result of expenses for the expansion of sales structures.

Continued positive development in North America The successful implementation of restructuring measures and the positive business development in North America resulted in a significant improvement in the result in this segment. EBIT was reported at € 0.6m and was therefore € 1.7m higher than the EBIT reported for the same period of the prior year (€ –1.1m). The positive trend continued in the third quarter. The Company achieved an EBIT of € 0.5m (prior year: € 0.1m).

In the »Asia/Pacific« segment, the earnings increased to € –0.4m (prior year: € –0.8m) due to the successful implementation of optimization projects.

The net finance cost declined by € 0.6m to € 1.0m (prior year: € 1.6m).

Earnings before taxes (EBT) increased to € 8.0m (prior year:€ 6.5m) in the first three quarters of the year. Tax expense dropped from € 3.3m to € 2.4m.

Consolidated result Jan 1 to Sept 30 in €m, IFRS

* Comparative figures restated per IAS 8, see note 3 in the notes to the consolidated financial statements

Consolidated result increased from € 3.2m to € 5.6m.

Earnings per share (diluted = undiluted) increased – on the basis of an average number of shares of 13,934,714, which was slightly down from the prior year (13,971,515) – to € 0.40 accordingly (prior year: € 0.23).

Consolidated result in the first three quarters of 2013 increases by € 2.4m to € 5.6m

1.2 Net assets

Balance sheet in €m, IFRS	Sept 30,	Dec 31,
	2013	2012
Non-current assets	93.4	96.6
thereof intangible assets	8.3	9.0
thereof deferred taxes	5.4	5.9
thereof trade receivables,
other assets and tax receivables	2.1	1.9
Current assets	86.3	87.0
thereof inventories	38.3	36.6
thereof trade receivables,
other assets and tax claims	44.0	46.6
thereof cash and cash equivalents	4.0	3.8
Total assets	179.7	183.6

The balance sheet total declined further from € 183.6m at the end of 2012 to € 179.7m as of September 30, 2013.

In particular, non-current assets decreased by € 3.2m to € 93.4m as a result of depreciation on fixed assets according to schedule.

Deferred tax assets declined from € 5.9m as of the end of 2012 to € 5.4m as of September 30, 2013.

Inventories rose only marginally from € 36.6m as of December 31, 2012 to € 38.3m.

Trade payables, other assets and taxes declined in the first three quarters of 2013 from € 48.5m per December 31, 2012 to € 46.1m. Trade receivables fell by € 4.5m, whereas other assets climbed by € 1.3m.

Cash and cash equivalents as of September 30, 2013 rose slightly to € 4.0m (December 31, 2012: € 3.8m).

Balance sheet equity and liabilities in €m, IFRS	Sept 30,	Dec 31,
	2013	2012
Equity	82.0	84.4
Liabilities to banks	8.3	5.3
Other liabilities and provisions	78.7	82.1
thereof trade payables	8.9	6.7
thereof provisions (including accrued taxes
on earnings)	26.0	27.8
Deferred income	7.8	8.8
Deferred tax liabilities	2.9	3.0
Total equity and liabilities	179.7	183.6

Solid balance sheet structures

Equity capital equaled € 82.0m as of September 30, 2013 (December 31, 2012: € 84.4m). As a result of income and expenses recognized directly in equity capital according to IFRS (see Statement of Changes in Equity), the changes in equity capital do not match the results for the period. The equity ratio dropped compared to yearend 2012 from 46.0% to 45.6%.

Compared to December 31, 2012, liabilities to banks rose, mainly due to the dividend payment, from € 5.3m at that time by € 3.0m to € 8.3m.

Because of increased bank liabilities, net bank debt (long-term and short-term bank debt less bank credit balances) was € 4.3m and thus higher than the value as of December 31, 2012 (€ 1.5m). Net finance debt (net bank debt plus long-term and short-term finance leasing) increased from € 8.3m as of December 31, 2013 to € 9.7m.

The item »Other liabilities and provisions« declined from € 82.1m to € 78.7m. This was caused primarily by a significant drop in the prepayments received and other current liabilities.

Trade payables increased slightly since the balance sheet date of December 31, 2012, from € 6.7m to € 8.9m.

Deferred tax liabilities were at € 2.9m slightly below the level of year-end 2012 (€ 3.0m).

Provisions (incl. accrued taxes on earnings) declined since the balance sheet date of December 31, 2012, from € 27.8m auf € 26.0m.

The gearing ratio – defined as the quotient of net finance debt to equity – climbed relative to December 31, 2012, from 0.10 to 0.12. Gearing at 0.12

45.6% equity ratio as of 30 September 2013

1.3 Financial position 1.4 Miscellaneous

Cash flow statement

Cash inflow from operating activities (net cash flow) declined substantially in the first three quarters of 2013 to € 12.3m (prior year:€ 15.6m). This was primarily attributable to changes in the net current assets due to lower advance payments by customers.

Net cash flow € 12.3m

The Company continually carries out measures to optimize its working capital. Thereby, net current assets (current trade receivables + inventories – current trade payables), were able to be reduced from € 73.1m by end of December 2012 to € 67.6m.

Cash outflow from investing activities equaled € 4.0m and was, as expected, slightly higher than the prior year (€ 3.6m). Free cash flow (net cash flow less cash outflow from investing activities) fell to € 8.3m (prior year:€ 12.0m).

Overall, as of September 30, 2013, cash and cash equivalents, which were held mostly in foreign currencies, increased by € 0.2m compared to the prior year.

Employees

Compared to December 31, 2012, the number of employees fell by 12 to 1,686. On a year-over-year basis (September 30, 2012 vs. September 30, 2013), 23 employees were added. The background is the further development of distribution in the growing markets of Eastern Europe and North America.

Share

During the first nine months of the year, the international trading climate was influenced by macroeconomic uncertainty surrounding US monetary policy, the concern about slowing economic growth in China and the sovereign debt problem in Europe.

The WashTec share price as of September 30, 2013 was € 9.85, which represents a price increase of 9.1% compared to the share price at the end of 2012 (€ 9.03). During the third quarter, the share price edged down, so that the price development during the entire reporting period was way under the development of the SDAX, which rose by 21.8% since the start of the year. At the same time, the WashTec shares moved within a relatively stable range between € 8.90 and € 11.40.

Shareholder structure

Shareholding in %	Sept 30,
	2013
Nmás1 Asset Management, SGIIC, S.A. through different vehicles	16.2
Sterling Strategic Value Ltd.	14.99
Kempen Capital Management NV	11.1
BNY Mellon Service Kapitalanlage-Gesellschaft mbH	5.6
Leifina GmbH & Co. KG et al	5.6
InvestmentAG für langfristige Investoren TGV	5.4
Lazard Frères Gestion S.A.S.	5.0
Paradigm Capital Value Fund	3.8
Setanta Asset Management	3.5
Diversity Industrie Holding AG	3.0
Free float	25.81

Source: Notices pursuant to the WpHG

In the third quarter of 2013, WashTec received one voting rights notification. Sterling Strategic Value Limited gave notice that its share of voting rights in WashTec AG had dropped below the 15% threshold on August 27, 2013 and on that day equaled 14.99%

In the third quarter, management again has intensified the dialogue with shareholders and journalists as well as with the financial community. For example, at the German Investment Conference and the German Mittelstandkonferenz, numerous individual meetings were held, along with a public presentation. In addition, a conference call was held for analysts and investors at the time of the Company's publications.

WashTec is currently covered by the financial institutions of BHF, Hauck & Aufhäuser, HSBC Trinkaus & Burkhardt and MM Warburg.

As of September 30, in relation to its trading volume, WashTec placed 132nd on the Deutsche Börse ranking for MDAX and SDAX stocks, not least because of the low free float (prior year ranking: 114). In terms of market capitalization, WashTec ranks 91st and is thus within the SDAX criterion.

Information on the relationships with related companies and persons

No significant transactions were conducted with related companies and persons during the reporting period.

Events after the end of the reporting period

WashTec AG hereby announces, that Mrs. Karoline Kalb (41, lawyer) has been appointed as Member of the Board of Management with effect as of November 1, 2013. She has been working for WashTec since 2001 in various management functions, most recently as director Key Account Management and Compliance. Mrs. Kalb will be responsible for Sales worldwide.

2. Forecast

Outlook 2013: revenue at prior year level with EBIT margin target of 5–6%

WashTec continues to seek to match last year's level of revenues for the entire year with a result of 5–6% in revenues – development of revenues in the last quarter expected to be below the prior year

At the end of the first three quarters, WashTec aims to match respectively, adjusted for exchange rates, be slightly above, the prior year's level of revenues. In this respect it must be taken into account that the business development in the last quarter of the prior year was extraordinarily positive, which is not expected in 2013 due to the reduced order backlog. An operational result of 5–6% of revenues continues to be the goal.

For the individual segments, the Company is targeting the following developments for the entire year:

• Core Europe: Stable or slightly lower revenues earnings strained due to significant scaled wage increases and increased operating costs;
• North America: Significant increase in revenues and improved earnings;
• Eastern Europe: Stable revenues with a stable to slightly lower result due to investments in the sales and service structures;
• Asia/Pacific: Stable revenues with improved earnings.

This forecast is marked with some uncertainties related to the ongoing developments in Core Europe. The development in the coming years will depend on the implementation of the revised strategy and on the realization of growth opportunities through innovations and the expansion of business into new markets.

Consolidated Income Statement

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

* Comparative figures adjusted per IAS 8, see item 3 in the notes to the consolidated financial statements

	Jan 1 to	Jan 1 to	Jul 1 to	Jul 1 to
	Sep 30,	Sep 30,	Sep 30,	Sep 30,
	2013	2012*	2013	2012*
	€	€	€	€
Revenues		218,321,156 217,125,161	78,383,190	74,547,163
Other operating income	2,646,553	2,955,664	856,497	968,071
Other capitalized development costs	369,764	1,050,212	17,796	166,407
Change in inventories	493,773	1,426,563	–758,750	639,407
Total		221,831,246 222,557,600	78,498,733	76,321,048
Cost of materials
Cost of raw materials, consumables and supplies and
of purchased material	72,868,909	77,193,701	25,541,018	26,227,862
Cost of purchased services	17,040,021	15,037,235	6,760,517	5,419,604
	89,908,930	92,230,936	32,301,535	31,647,466
Personnel expenses	79,178,962	76,397,639	26,088,207	26,455,750
Amortization, deprecation and impairment of
intangible assets and property, plant and equipment	7,356,261	7,381,949	2,467,041	2,432,247
Other operating expenses	35,985,742	37,621,087	11,327,577	13,126,722
Other taxes	456,071	762,846	215,277	272,824
Total operating expenses		212,885,966 214,394,457	72,399,637	73,965,009
EBIT	8,945,280	8,163,143	6,099,096	2,356,039
Other interest and similar income	148,758	126,345	84,287	10,978
Interest and similar expenses	1,104,459	1,753,407	381,545	728,189
Financial result	–955,701	–1,627,062	–297,258	–717,211
Result from ordinary activities/EBT	7,989,579	6,536,081	5,801,838	1,638,828
Income taxes	–2,398,044	–3,304,463	–1,001,791	–1,318,303
Consolidated net income	5,591,535	3,231,618	4,800,047	320,525
Average number of shares	13,934,714	13,971,515	13,932,312	13,971,515
Earnings per share (basic = diluted)	0.40	0.23	0.34	0.02

Consolidated Statement of Comprehensive Income

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

* The table is in accordance with the revised IAS 1.

Comparative figures adjusted per IAS 8, see item 3 in the notes to the consolidated financial statements

	Jan 1 to	Jan 1 to	Jul 1 to	Jul 1 to
	Sep 30,	Sep 30,	Sep 30,	Sep 30,
	2013	2012*	2013	2012*
	€k	€k	€k	€k
Earnings after taxes	5,592	3,232	4,801	321
Actuarial gains/losses from defined benefit obligations
and similar obligations	0	–650	0	0
Deferred taxes	0	152	0	0
Items that will not be reclassified to profit or loss	0	–498	0	0
Changes in the fair value of financial instruments used for
hedging purposes recognized under equity	356	–11	0	239
Adjustment item for the currency translation of foreign
subsidiaris and currency changes	65	114	–50	–135
Exchange differences on net investments in subsidiaries	–264	14	2	140
Deferred taxes	–88	–18	30	–47
Items that may be reclassified subsequently
to profit or loss	69	99	–18	197
Valuation gains/losses recognized directly in equity	69	–399	–18	197
Total income and expense and valuation in gains/losses
recognized directly in equity	5,661	2,833	4,783	518

Consolidated Balance Sheet

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

Assets		Sep 30,2013 Dec 31,2012
	€	€
Non-current assets
Property, plant and equipment	35,330,186	37,497,989
Goodwill	42,312,462	42,313,530
Intangible assets	8,278,427	8,977,370
Trade receivables	1,800,024	1,403,564
Tax receivables	121,798	174,115
Other assets	188,667	317,764
Deferred tax assets	5,352,941	5,916,187
Total non-current assets		93,384,505 96,600,519
Current assets
Inventories	38,324,813	36,648,658
Trade receivables		38,086,372 43,014,863
Tax receivables	992,172	111,909
Other assets	4,908,495	3,458,841
Cash and bank balances	4,008,557	3,771,477
Total current assets	86,320,409	87,005,748
Total assets		179,704,914 183,606,267

Equity and liabilities		Sep 30,2013 Dec 31,2012
	€	€
Equity
Subscribed capital		40,000,000 40,000,000
thereof contingent capital		12,000,000 12,000,000
Capital reserves		36,463,441 36,463,441
Treasury shares	–417,067	–431,021
Other reserves and currency translation effects	–2,876,917	–2,943,154
Profit carried forward	3,274,208	1,304,817
Consolidated profit for the period	5,591,535	10,050,135
		82,035,200 84,444,218
Non-current liabilities
Interest-bearing loans	8,073,585	5,021,125
Finance leasing	3,421,467	4,434,259
Provisions for pensions	8,957,391	8,876,236
Trade payables	54,891	109,392
Other nun-current provisions	3,594,628	3,746,019
Other nun-current liabilities	1,944,949	1,425,801
Deferred revenue	734,392	739,938
Deferred tax liabilities	2,911,191	2,991,965
Total non-current liabilities	29,692,494	27,344,735
Current liabilities
Interest-bearing loans	229,900	242,026
Finance leasing	2,032,809	2,412,581
Prepayments on orders	5,738,571	7,746,785
Trade payables	8,842,679	6,573,095
Other liabilities for taxes and levies	3,992,876	5,651,259
Other liabilities for social security	840,914	927,168
Tax liabilities	1,003,196	2,169,914
Other current liabilities	25,807,506	25,031,429
Other current provisions		12,408,281 13,000,991
Deferred revenue	7,080,488	8,062,066
Total current liabilities	67,977,220	71,817,314
Total equity and liabilities		179,704,914 183,606,267

Consolidated Cash Flow Statement

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

* Comparative figures adjusted per IAS 8, see item 3 in the notes to the consolidated financial statements

	Jan 1 to	Jan 1 to
		Sep 30,2013 Sep 30,2012*
	€k	€k
EBT	7,990	6,536
Adjustments to reconcile profit before tax to net cash flows not affecting cash:
Amortization, depreciation and impairment of non-current assets	7,356	7,382
Gain/loss from disposals of non-current assets	–56	–195
Other gains/losses	–1,502	–684
Interest income	–149	–126
Interest expense	1,104	1,753
Movements in provisions	–566	–3,214
Changes in net working capital:
Increase/decrease in trade receivables	4,408	2,240
Increase/decrease in inventories	–1,746	–81
Increase/decrease in trade payables	1,455	–351
Changes in other net working capital	–1,855	6,268
Income tax paid	–4,109	–3,960
Cash inflow from operating activities (net cash flow)	12,330	15,567
Purchase of property, plant and equipment (without finance leasing)	–4,299	–3,688
Proceeds from sale of property, plant and equipment	254	139
Acquisition of a subsidiary, net of cash acquired	0	–13
Cash outflow from investment activities	–4,045	–3,562
Raising of long-term loans	3,011	0
Repayment of non-current liabilities to banks	0	–10,290
Dividend paid	–8,081	0
Acquisition of treasury shares	–171	–124
Interest received	77	63
Interest paid	–903	–1,116
Repayment and raising of liabilities from finance leases	–1,929	–1,998
Net cash flows used in financing activities	–7,996	–13,465
Net increase/decrease in cash and cash equivalents	289	–1,460
Net foreign exchange difference in cash and cash equivalents	–39	–264
Cash and cash equivalents at January 1	3,529	2,602
Cash and cash equivalents at September 30	3,779	879
Composition of cash and cash equivalents for cash flow purposes:
Cash and cash equivalents	4,009	2,862
Current bank liabilities	–230	–1,984
Cash and cash equivalents at September 30	3,779	879

Statement of Changes in Consolidated Equity

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

* Comparative figures adjusted per IAS 8, see item 3 in the notes to the consolidated financial statements

€k	Number of	Subscribed	Capital	Treasury	Other	Exchange	Profit carried	Total
	shares in units	capital	reserve	shares	reserves	effects	forward
As of January 1, 2012	13,976,970	40,000	36,464	0	–2,267	–205	1,304	75,296
Income and expenses recognized
directly in equity					–647	114		–533
Taxes on transactions recognized
directly in equity					134			134
Acquisition of treasury shares	–14,005			–124				–124
Consolidated earnings for the period							3,232	3,232
As of September 30, 2012*	13,962,965	40,000	36,464	–124	–2,780	–91	4,536	78,005
As of January 1, 2013	13,944,736	40,000	36,464	–431	–3,004	61	11,354	84,444
Income and expenses recognized
directly in equity					89	65		154
Taxes on transactions recognized
directly in equity					–88			–88
Acquisition of treasury shares	–12,424			14				14
Dividends							–8,081	–8,081
Consolidated earnings for the period							5,592	5,592
As of September 30, 2013	13,932,312	40,000	36,464	–417	–3,003	126	8,865	82,035

Notes to the Interim Condensed Consolidated Financial Statements of WashTec AG (IFRS) for the period January 1 to September 30, 2013

General Disclosures

1. Information on the Company

The ultimate parent company of the WashTec Group is WashTec AG, which is entered in the commercial register for the City of Augsburg under registration number HRB 81.

The Company's registered office is located at Argonstrasse 7 in 86153 Augsburg, Germany. The Company's shares are publicly traded.

The purpose of the WashTec Group comprises the development, manufacture, sale and servicing of carwash products, as well as leasing and all services and financing solutions which are related thereto and required in order to operate carwash equipment.

The consolidated financial statements are prepared in euro. Amounts are rounded-off to the nearest euro or are shown in millions of euro (€m) or thousands of euro (€k).

2. Accounting and valuation policies

Principles in preparing financial statements

The interim condensed consolidated financial statements for the period January 1 through September 30, 2013 were prepared in accordance with IAS 34, »Interim Financial Reporting«.

The interim condensed consolidated financial statements do not include all explanations and information required for the financial statements for the fiscal year and should be read in conjunction with the consolidated financial statements for the period ending December 31, 2012.

Significant accounting and valuation methods

The accounting and valuation methods, which were applied when preparing the interim condensed consolidated financial statements, comply with the methods that were used when preparing the consolidated financial statements for the fiscal year ending December 31, 2012, except for the tax calculation. The tax calculation for condensed interim financial statements is done by multiplying the result with the anticipated applicable annual tax rate, taking account of special effects.

In the reporting period, the Group applied the following new and revised IFRS Standards and Interpretations.

• IAS 1 Amendments relating to Presenting Other Comprehensive Income (OCI)
• IFRS Annual Improvements to the International Financial Reporting Standards, 2009-2011 Cycle
• IFRS 13 Fair Value Measurement

The facts addressed by IAS 1 are generally of importance to the WashTec Group. Its application results in an expanded view of the »statement of income and accumulated earnings«. The other Standard currently has no material effect on the net assets, financial position and results of operation for the WashTec Group.

3. Corrections under IAS 8

Since fiscal year 2012, WashTec had opted for an early application of the revised IAS 19 (Employee Benefits). The early application relates to accounting for phased retirement reserves [Altersteilzeitrückstellung] and to additional information in the notes on the pension provisions. Details about the accounting of phased retirement reserves are described in the explanations to the accounting and valuation methods in the consolidated financial statements per December 31, 2012.

The book entries may be classified according to the following items:

Profit carried forward/consolidated profit: Improvement in the amount of € 142k from the prior year and € 790k from the current fiscal year.

Provisions: Reduction of the other long-term provisions in the amount of € 1,345k accumulated.

Deferred tax liabilities: Increase in an amount totaling € 413k.

Personnel expenses: Income in the amount of € 1,140k for January until September 2012.

Income tax expense: Expense in the amount of € 350k for January until September 2012.

An overview concerning the effects of the corrections is shown in Tables 1 through 3 below.

Table 1 Correction of the Consolidated Income Statement per September 30, 2012

Rounding differences are possible

	Jan 1 to		Jan 1 to
	Sep 30, 2012		Sep 30, 2012
	previously	Correction
	reported	IAS 8	adjusted
	€	€	€
Revenues	217,125,161		217,125,161
Other operating income	2,955,664		2,955,664
Other capitalized development costs	1,050,212		1,050,212
Change in inventories	1,426,563		1,426,563
Total	222,557,600		0 222,557,600
Cost of materials
Cost of raw materials, consumables and supplies and
of purchased material	77,193,701		77,193,701
Cost of purchased services	15,037,235		15,037,235
	92,230,936	0	92,230,936
Personnel expenses	77,538,126	–1,140,487	76,397,639
Amortization, deprecation and impairment of
intangible assets and property, plant and equipment	7,381,949		7,381,949
Other operating expenses	37,621,087		37,621,087
Other taxes	762,846		762,846
Total operating expenses	215,534,944		–1,140,487 214,394,457
EBIT	7,022,656	1,140,487	8,163,143
Other interest and similar income	126,345		126,345
Interest and similar expenses	1,753,407		1,753,407
Financial result	–1,627,062		–1,627,062
Result from ordinary activities/EBT	5,395,594	1,140,487	6,536,081
Income taxes	–2,954,333	–350,130	–3,304,463
Consolidated profit for the period	2,441,261	790,357	3,231,618
Average number of shares	13,971,515		13,971,515
Earnings per share (basic = diluted)	0.17		0.23

Table 2 Correction of the Consolidated Balance Sheet per September 30, 2012

Rounding differences are possible

Equity and liabilities	Jan 1 to		Jan 1 to
	Sep 30, 2012		Sep 30, 2012
	previously	Correction
	reported	IAS 8	adjusted
	€	€	€
Equity
Subscribed capital	40,000,000		40,000,000
thereof contingent capital	12,000,000		12,000,000
Capital reserves	36,463,441		36,463,441
Treasury shares	–123,800		–123,800
Other reserves	–2,871,852		–2,871,852
Profit carried forward	1,162,710	142,108	1,304,818
Consolidated profit for the period	2,441,261	790,357	3,231,618
	77,071,760	932,465	78,004,225
Non-current liabilities
Interest-bearing loans	9,032,701		9,032,701
Finance leasing	4,392,460		4,392,460
Provisions for pensions	7,986,578		7,986,578
Trade payables	21,743		21,743
Other non-current provisions	5,938,012	–1,345,549	4,592,463
Other nun-current liabilities	1,463,837		1,463,837
Deferred revenue	642,288		642,288
Deferred tax liabilities	2,813,217	413,084	3,226,301
Total non-current liabilities	32,290,836	–932,465	31,358,371
Current liabilities
Interest-bearing loans	1,983,789		1,983,789
Finance leasing	2,450,078		2,450,078
Prepayments on orders	6,489,387		6,489,387
Trade payables	9,641,512		9,641,512
Other liabilities for taxes and levies	3,934,455		3,934,455
Other liabilities for social security	887,394		887,394
Tax liabilities	2,551,761		2,551,761
Other current liabilities	28,773,752		28,773,752
Other current provisions	13,187,136		13,187,136
Deferred revenue	8,388,496		8,388,496
Total current liabilities	78,287,760	0	78,287,760
Total equity and liabilities	187,650,356		0 187,650,356

Table 3
Correction of the
Consolidated
Cash Flow Statement
per September 30, 2012

Rounding differences are possible

Sep 30, 2012 Sep 30, 2012 previously Correction reported IAS 8 adjusted €k €k €k EBT 5,396 1,140 6,536 Adjustments to reconcile profit before tax to net cash flows not affecting cash: Amortization, depreciation and impairment of non-current assets 7,382 7,382 Gain/loss from disposals of non-current assets –195 –195 Other gains/losses –684 –684 Interest income –126 –126 Interest expense 1,753 1,753 Movements in provisions –2,074 –1,140 –3,214 Changes in net working capital: Increase/decrease in trade receivables 2,240 2,240 Increase/decrease in inventories –81 –81 Increase/decrease in trade payables –351 –351 Changes in other net working capital 6,268 6,268 Income tax paid –3,960 –3,960 Cash inflow from operating activities (net cash flow) 15,567 0 15,567 Purchase of property, plant and equipment (without finance leasing) –3,688 –3,688 Proceeds from sale of property, plant and equipment 139 139 Acquisition of a subsidiary, net of cash acquired –13 –13 Cash outflow from investment activities –3,562 0 –3,562 Raising of long-term loans –10,290 –10,290 Acquisition of treasury shares –124 –124 Interest received 63 63 Interest paid –1,116 –1,116 Repayment and raising of liabilities from finance leases –1,998 –1,998 Net cash flows used in financing activities –13,465 0 –13,465 Net increase/decrease in cash and cash equivalents –1,460 –1,460 Net foreign exchange difference in cash and cash equivalents –264 –264 Cash and cash equivalents at January 1 2,602 2,602 Cash and cash equivalents at September 30 879 879 Composition of cash and cash equivalents for cash flow purposes: Cash and cash equivalents 2,862 2,862 Current bank liabilities –1,984 –1,984 Cash and cash equivalents at September 30 879 879	Jan 1 to	Jan 1 to

4. Segment reporting

Jan to Sep 2013	Core	Eastern	North	Asia/	Consoli-	Group
in €k	Europe	Europe	America	Pacific	dation
Revenues	176,508	10,108	34,670	8,694	–11,659	218,321
thereof with third parties	165,748	10,071	34,265	8,694	–457	218,321
thereof with other segments	10,760	37	405	0	–11,202	0
Operating result	8,277	485	620	–407	–30	8,945
Financial result						149
Financial expenses						–1,104
Results from ordinary business activities						7,990
Income tax expense						–2,398
Consolidated result						5,592

Jan to Sep 2012*	Core	Eastern	North	Asia/	Consoli-	Group
in €k	Europe	Europe	America	Pacific	dation
Revenues	175,814	9,733	33,694	8,300	–10,415	217,125
thereof with third parties	165,819	9,716	33,373	8,300	–83	217,125
thereof with other segments	9,995	17	320	0	–10,332	0
Operating result	9,292	553	–1,067	–777	162	8,163
Financial result						126
Financial expenses						–1,753
Results from ordinary business activities						6,536
Income tax expense						–3,304
Consolidated result						3,232

* Comparative figures adjusted per IAS 8, see item 3 in the notes to the consolidated financial statements

5. Equity capital

The subscribed capital of WashTec AG on September 30, 2013 equaled € 40,000k. This capital is divided into 13,976,970 no-par value bearer shares and has been fully paid-in.

The authorization, which was the basis of the share buyback program approved by the management board on August 14, 2012, expired on May 4, 2013.

As of the balance sheet date, the Company had acquired 44,658 shares at a value of € 417k. These purchases have thereby lowered the number of issued and outstanding shares to 13,932,312.

6. Financial instruments – additional disclosures

The table set forth below, which is based on the relevant balance sheet items, shows the relationships between the classification and the values assigned to the financial instruments.

Carrying values, valuation approaches and fair value measurement categories:

In €k	Measurement	Carrying	Balance sheet valuation under IAS 39			Balance sheet	Fair
	category	value	Amortized	Fair Value	Fair Value	valuation	value
	under IAS 39	Sep 30, 2013	cost	in equity	through	under IAS 17	Sep 30, 2013
					profit and loss
Assets
Cash and cash equivalents	LaR	4,009	4,009	–	–	–	4,009
Trade receivables	LaR	39,886	39,886	–	–	–	39,886
Other financial assets	LaR	845	845	–	–	–	845
Liabilities
Trade payables	FLAC	8,898	8,898	–	–	–	8,898
Interest bearing-loans	FLAC	8,303	8,303	–	–	–	8,303
Other financial liabilities	FLAC	14,618	14,618	–	–	–	14,618
Finance lease liabilities	n.a.	5,454	–	–	–	5,454	5,454
Derivatives financial liabilities		1,096	–	–	1,096	–	1,096
Aggregated presentation per IAS 39
measurement categories
Loans and Receivables (LaR)			44,740	–	–
Financial Liabilities Measured at
Amortised Cost (FLAC)			31,819	–	–

In €k	Measurement	Carrying	Balance sheet valuation under IAS 39			Balance sheet	Fair
	category	value	Amortized	Fair Value	Fair Value	valuation	value
	under IAS 39	Dec 31, 2012	cost	in equity	through	under IAS 17	Dec 31, 2012
					profit and loss
Assets
Cash and cash equivalents	LaR	3,771	3,771	–	–	–	3,771
Trade receivables	LaR	44,418	44,418	–	–	–	44,418
Other financial assets	LaR	1,124	1,124	–	–	–	1,124
Liabilities
Trade payables	FLAC	6,682	6,682	–	–	–	6,682
Interest bearing-loans	FLAC	5,263	5,263	–	–	–	5,263
Other financial liabilities	FLAC	13,017	13,017	–	–	–	13,017
Finance lease liabilities	n.a.	6,847	–	–	–	6,847	6,847
Derivatives financial liabilities		1,606	–	356	1,250	–	1,606
Derivatives with hedge relationship	n.a.	356	–	356	–	–	356
Aggregated presentation per IAS 39
measurement categories
Loans and Receivables (LaR)			49,314	–	–
Financial Liabilities Measured at
Amortised Cost (FLAC)			24,963	–	–

The table set forth below shows the fair values assigned to the financial instruments.

in €k	Fair value per Sep 30, 2013
	Level 1	Level 2	Level 3
Derivative financial instruments	–	1,096	–
in €k	Fair value per Dec 31, 2012
	Level 1	Level 2	Level 3
Derivative financial instruments	–	1,606	–

The derivative financial instruments shown under Level 2 include foreign exchange forwards and interest rate swaps. These foreign exchange forwards are recognized at fair value using the anticipated exchange rates, which are quoted on a regulated market. Interest rate swaps are recognized at fair value using the anticipated interest rates using recognized yield curves. The effects from discounting are generally insignificant for the Level 2 derivatives.

The fair value of the financial instruments is categorized according to the following maturities:

Total	1,096	1,606
Current	451	477
Non-current	645	1,129
in €k		Sep 30, 2013 Dec 31, 2012

The fair value of the receivables and trade payables as well as cash and cash equivalents matches the relevant book value because of the short maturities. The fair value of the derivative financial instruments, liabilities under financial leases and loans was calculated by discounting to present value their expected future cash flows based on customary market yields.

7. Contingent liabilities and other financial obligations

Contingent liabilities and other financial obligations remained mostly unchanged compared to December 31, 2012.

8. Information about related party transactions

No significant transactions with related parties occurred during the reporting period.

9. Notes after the balance sheet date

WashTec AG hereby announces, that Mrs. Karoline Kalb (41, lawyer) has been appointed as Member of the Board of Management with effect as of November 1, 2013. She has been working for WashTec since 2001 in various management functions, most recently as director Key Account Management and Compliance. Mrs. Kalb will be responsible for Sales worldwide.

Contact

86153 Augsburg www.washtec.de

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

Financial Calendar

November 11–13, 2013 Analysts Conference/Eigenkapitalforum (Frankfurt a. M.) (WashTec presentation: November 13, 2013, 3.00 p.m. room »Milan«) March, 2014 Annual report 2013 May, 2014 1Q/14 report May, 2014 Annual general meeting 2014 August, 2014 1H/14 report November, 2014 3Q/14 report