WashTec AG — Interim / Quarterly Report 2014

May 5, 2014

Q1 2014

Report on the Period from January 1 to March 31, 2014 Unaudited translation for convenience purposes only

Increase in earnings compared to the same period last year despite slight revenue decline; favorable business performance in Core Europe; cumulative incoming orders slightly higher than prior year

• Revenues at € 64.8m (prior year: € 65.3m); EBIT at € –0.4m (prior year: € –1.2m); net cash flow € 5.4m (prior year € 5.5m)
• Positive development of the chemicals and service business in Europe
• Dr. Günter Blaschke and Ulrich Bellgardt nominated for election to the supervisory board

Total revenues and earnings development in the quarter

		Jan 1 to	Jan 1 to	Change
		Mar 31, 2014 Mar 31, 2013		absolute
Revenues	€ m	64.8	65.3	–0.5
EBITDA	€ m	2.0	1.3	0.7
EBIT	€ m	–0.4	–1.2	0.8
EBIT margin	in %	–0.6	–1.9	1.3
EBT	€ m	–0.6	–1.8	1.2
Employees per reporting date	persons	1,678	1,654	24
Average number of shares		units 13,932,312 13,954,412		–22,100
Earnings per share 1	€	–0.04	–0.11	0.07
Free cash flow 2	€ m	4.6	4.5	0.1
Capital expenditures	€ m	0.8	1.0	–0.2
Capital ratio per reporting date 3	in %	49.5	46.2	–
Gearing ratio per reporting date 4	in %	–0.05	0.18	–

1 Diluted = undiluted

2 Net cash flow – cash outflow from investing activity 3 Equity capital/balance sheet total

4 Net finance debt/EBITDA (rolling)

Interim management report (unaudited) Total revenues and earnings development in the quarter

EBIT increased to € –0.4m due to higher revenues in chemicals and services

The revenues in the first quarter of 2014 totaled € 64.8m and thus were slightly lower (€ –0.5m or –0.8%) than the same period last year. Primarily due to a positive development of the European chemicals and service business, the Company was able to increase its EBIT to € –0.4m (prior year € 1.2m)

The unusually low order backlog at the beginning of the year rose in the first quarter mainly as a result of better incoming orders in Core Europe. The order intake in the markets of Eastern Europe, Asia and America remained below expectations. The order backlog as a whole is therefore lower than the prior year level.

General conditions

Stable revenues and stable EBIT margin are sought

The general conditions are for the most part identical to the situation described in the 2013 Group management report. By contrast, the geopolitical situation has changed, particularly in Eastern Europe. In our opinion, the crisis in Crimea has impacted relations between the Western and Eastern Europe. Economic growth in China has also slowed down, while the development in North America continues to be viewed as favorable. The situation in Western Europe appears to be stable at the moment, while the impact of the geopolitical distortions remains to be seen.

The competitive conditions are for the most part identical to the situation described in the 2013 Group management report. There have been no significant changes in technology and none are foreseeable.

Efficiency program

The management board and the supervisory board have reached an understanding to develop and implement additional programs for

improving efficiency. If the market situation remains stable, such measures should allow profitability to improve to a 8% EBIT margin beginning in 2016. The one-time expense for such measures is estimated at up to € 3.0m.

Changes on the supervisory board

Mr. Michael Busch, supervisory board chairman of WashTec AG, and Mr. Massimo Pedrazzini, deputy supervisory board chairman, will resigning from their positions effective at the end of this year's annual general meeting. The invitation to the annual general meeting of shareholders contains the supervisory board's recommendation to the annual general meeting that Dr. Günter Blaschke, former management board chairman of Rational AG, and Mr. Ulrich Bellgardt, a business consultant with ubc GmbH, be elected to serve on the supervisory board.

Recommendation for a special dividend payment to the shareholders

In accordance with the dividend policy of generally paying out about 40% of the consolidated net profit, the management board and supervisory board are recommending to this year's annual general meeting of the shareholders scheduled for June 4, 2014 that a dividend be paid in an amount of € 0.32 per no par value, dividend-entitled share. That dividend would be accompanied by a special dividend in the amount of € 0.32 per dividend-entitled no-par share. The reason for declaring the special dividend is the low EBITDA-gearing ratio and the Company's solid equity capitalization. Sixty-eight point eight percent (68.8%) of the distribution will be made from the so-called "capital contribution account for tax purposes".

Management board and supervisory board recommend a special dividend of € 0.32

Revenues and earnings by segment

Revenues by segment
in € m, IFRS	Jan 1 to	Jan 1 to	Change
(Rounding-off differences possible) Mar 31,2014 Mar 31,2013			absolute
Core Europe	54.3	52.5	1.8
Eastern Europe	2.5	3.6	–1.1
North America	9.1	10.4	–1.3
Asia/Pacific	2.4	3.1	–0.7
Consolidation	–3.5	–4.2	0.7
Total	64.8	65.3	–0.5

Revenue increase in Core Europe, revenue decline in the other segments

The increase in revenues for the "Core Europe" segment in the first quarter of 2014 can be attributed primarily to higher revenues in the chemicals and services business resulting from more focus on these areas as well as a milder than usual weather this winter. Revenues generated with equipment were at the same level as the prior year. In the "Eastern Europe" segment, revenues fell relative to last year due to, among other things, the consequences of the crisis in Crimea. In the "North America" segment, a drop in business with a key account caused a decline in revenues to € 9.1m. The relevant revenues in US Dollar terms equaled USD 12.4m (prior year: USD 13.7m). In the "Asia/Pacific" segment, revenues were below prior year due to the development of the Australian market.

EBIT by segment
in € m, IFRS	Jan 1 to	Jan 1 to	Change
(Rounding-off differences possible) Mar 31,2014 Mar 31,2013			absolute
Core Europe	0.4	–1.1	1.5
Eastern Europe	–0.2	0.2	–0.4
North America	–0.4	–0.3	–0.1
Asia/Pacific	–0.1	–0.1	0.0
Consolidation	0.0	0.1	–0.1
Total	–0.4	–1.2	0.8

The EBIT increase in the "Core Europe" segment is based on the revenue growth achieved. In the "Eastern Europe" segments, the declining revenues together with the capital expenditures made in the prior year to build up the distribution structures adversely affected the EBIT. The successful implementation of the restructuring in the "North America" segment produced an EBIT which was almost stable despite the drop in revenues. In the "Asia/Pacific" segment, the EBIT was at the prior year level, while the local structures in China were once again expanded.

In general, the exchange rate development between the US dollar and the euro did not have any significant impact on the operating business. The balance sheet date valuation used for the assets and liabilities, which were reported in a foreign currency on the balance sheet, had a positive effect on earnings in the amount of € –0.1 m (prior year: € 0.0m).

Revenues by product
in € m, IFRS	Jan 1 to	Jan 1 to	Change
(Rounding-off differences possible) Mar 31,2014 Mar 31,2013			absolute
New and used equipment	30.0	32.7	–2.7
Spare parts, service	22.4	21.4	1.0
Chemicals	9.2	8.3	0.9
Operator business and others	3.2	3.0	0.2
Total	64.8	65.3	–0.5

The revenue decline for new and used equipment was for the most part offset by revenue increases generated with all other products. Due to the excellent wash business resulting from the good weather conditions, the service, chemicals and operator business divisions were able to increase their revenues.

Expenses and earnings

Net assets

Due to the changed product and region mix, the gross profit margin
rose slightly from 59.0% to 60.2%.

Personnel expenses increased by € 0.6m to € 26.8m (prior year: € 26.2m). The main reasons for this development were the scaled wage increases in Core Europe and more hiring in the growth regions.

Other operating expenses (including other taxes) decreased by € –1.4m to € 11.1m (prior year: € 12.5m). In addition to a lower loss from the valuation of assets held in a foreign currency, a key reason for this decrease was strict cost management in all divisions.

Earnings
in € m, IFRS	Jan 1 to	Jan 1 to	Change
			absolute
Gross profit*	39.0	38.6	0.4
EBITDA	2.0	1.3	0.7
EBIT	–0.4	–1.2	0.8
EBIT margin in %	–0.6	–1.9
EBT	–0.6	–1.8	1.2
			(Rounding-off differences possible) Mar 31,2014 Mar 31,2013

* Revenues + change in inventory – cost of materials

EBITDA climbed by € 0.7m to € 2.0m (prior year: € 1.3m).

The consolidated net result after taxes totaled € –0.6m (prior year: € –1.6m. Earnings per share (diluted = undiluted) therefore rose to € –0.04m (prior year: € –0.11).

Balance sheet assets in € m, IFRS		Mar 31,2014 Dec 31,2013
Non-current assets	90.4	91.9
thereof intangible assets	7.3	7.7
thereof deferred taxes	4.6	4.3
Current assets	85.9	82.4
thereof inventories	35.5	34.3
thereof trade receivables, other assets	43.6	44.3
Thereof cash and cash equivalents	6.8	3.8
Total assets	176.3	174.2

Balance sheet equity and liabilities in € m, IFRS Mar 31,2014 Dec 31,2013
Equity	87.3	87.8
Liabilities to banks	0.2	1.0
Other liabilities and provisions	78.5	74.6
thereof trade payables	9.0	8.8
thereof provisions (including income tax debt)	28.1	26.3
Deferred income	7.3	7.7
Deferred tax liabilities	3.0	3.1
Total equity and liabilities	176.3	174.2

Net current assets (short-term trade receivables + inventories – short-term trade payables) decreased from € 65.2m as of December 31, 2013 to € 62.3m mainly because receivables were lower.

Equity capital ratio equals 49.5%

Equity fell to € 87.3m as of March 31, 2014 (December 31, 2013: € 87.8m) mostly due to the consolidated net result. As a result of income and expenses recognized directly in equity capital according to IFRS, the change in equity capital does not match up with the results for the period. The equity ratio decreased compared to the end of 2013 from 50.4% to 49.5% mainly based on the higher balance sheet totals.

Net bank debt (long-term and short-term bank debt less bank credit balances) was € –6.6m (December 31, 2013: € –2.7m). Net finance debt (net bank debt plus long-term and short-term finance leasing) was negative and sank to € –1.4m (December 31, 2013: € 2.9m).

Other liabilities and provisions climbed to € 78.5m (December 31, 2013: € 74.6m) because more prepayments were received and tax liabilities were higher.

Financial position

Cash inflow from operating activities (net cash flow) declined slightly in the first quarter of 2014 to € 5.4m due to lower revenues (prior year: € 5.5m).

Cash outflow from investing activities fell slightly to € 0.8m (prior year: € 1.0m). Projected over the entire year, the investment volume is expected to increase slightly compared to 2013.

The free cash flow (net cash flow less cash outflow from investing activities) equaled € 4.6m (prior year: € 4.5).

Overall, cash and cash equivalents, compared to December 31, 2013, increased by € 3.8m to € 6.6m.

Employees

Compared to March 31, 2013, 24 employees have been added. The new hirings were carried out in growth and/or focus areas such as Eastern Europe, North America and Asia/Pacific. Since December 31, 2013, the number of employees has fallen by 3 to 1,678.

Number of employees at the WashTec Group is 1,678

Share with favorable performance

On March 31, 2014, the WashTec share price equaled € 11.76, which represents a 9.0% price increase from the closing price on the last trading day of the prior year, which was € 10.70 on December 30, 2013. WashTec shares therefore outperformed the SDAX, which has climbed by 5.6% since the beginning of the year.

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

As of March 31, the trading volume of WashTec shares placed 130th on the Deutsche Börse ranking for MDAX and SDAX stocks (prior year ranking: 118). In terms of market capitalization, WashTec is ranked 102nd and has for some time already met the SDAX criterion.

Change in the shareholder structure

In the first quarter of 2014, WashTec AG received numerous voting rights notifications pursuant to the German Securities Trading Act:

STERLING STRATEGIC VALUE LIMITED, Road Town, Tortola, British Virgin Islands, notified us that its voting shares had fallen below the 10%, 5% and 3% thresholds on March 19, 2014 and equaled 1.44% on that day and were 0% on March 21, 2014.

Diversity Industrie Holding AG, Grünwald, Germany, notified us that its voting shares climbed above the 5% threshold on March 19, 2014 and equaled 6.19% on that day.

Paradigm Capital Value Fund SICAVC, Luxemburg, Luxemburg, notified us that its voting shares climbed above the 5% threshold and equaled 6.01% on that date.

Kerkis GmbH, Munich, Germany, notified us that its voting shares climbed above the 5% threshold on March 19, 2014 and equaled 5.99% on that date. All voting shares were attributed to that company by Leifina GmbH & Co. KG, Munich, Germany.

Shareholding in %	Mar 31,2014
EQMC Europe Development Capital Fund plc	14.66
Kempen European Participations N.V.	10.64
Dr. Kurt Schwarz (Kerkis GmbH, Leifina GmbH & Co. KG, etc.)	8.38
Diversity Industrie Holding AG	6.19
Paradigm Capital Micro Cap Calue Fund	6.01
BNY Mellon Service Kapitalanlage-Gesellschaft mbH	5.61
Investment AG für langfristige Investoren TGV	5.43
Desmarais Family Risiduary Trust	3.48
Lazard Frères Gestion S.A.S.	3.04
Free float	36.56

Based on notices filed under the German Securities Trading Act (WpHG)

During the quarter, management continued its dialogue with shareholders and journalists as well as the financial community. As part of the Company's financial press conference and a conference call held with interested capital market participants, the numbers for fiscal year 2013 were presented on March 31, 2014.

Annual general meeting of shareholders on June 4, 2014 in Augsburg

The annual general meeting of WashTec AG shareholders will be held on June 4, 2014 in Augsburg. The site of this year's meeting is the convention center, Kongress am Park

Information about dealings 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

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

Opportunities and risks for Group development

The 2013 annual report includes a description of the WashTec Group's risk management. There have been no material changes in the opportunities and risks that are described in the risk report of the 2013 annual report.

Forecast

After the end of the first quarter, due to the current political and economic developments in Eastern Europe and Asia, the company for the year 2014 strives for stable revenues and a stable EBIT margin before restructuring costs of the efficiency program announced.

The following development of the individual segments is expected:

• Core Europe: Slightly increasing revenues and earnings
• Eastern Europe: Stable revenues with less than proportional earnings as a result of investments into structures
• North America: Positive earnings with stable or slightly declining revenues
• Asia/Pacific: Stable revenues with less than proportional earnings due to investments.

Due to the currently uncertain overall development in submarkets a forecast for 2014 is subject to uncertainties.

Consolidated Income Statement

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

€	Jan 1 to	Jan 1 to
		Mar 31,2014 Mar 31,2013
Revenues	64,807,208	65,316,691
Other operating income	972,076	1,140,832
Other capitalized development costs	18,585	289,278
Change in inventories	147,321	–1,008,479
Total		65,945,190 65,738,322
Cost of materials
Cost of raw materials, consumables and supplies and of purchased material	21,269,889	21,111,115
Cost of purchased services	4,683,662	4,634,170
		25,953,551 25,745,285
Personnel expenses	26,837,901	26,168,797
Amortization, deprecation and impairment of
intangible assets and property, plant and equipment	2,404,699	2,507,014
Other operating expenses	10,908,538	12,345,681
Other taxes	217,814	201,983
Total operating expenses		66,322,503 66,968,760
EBIT	–377,313	–1,230,438
Other interest and similar income	83,988	5,391
Interest and similar expenses	272,083	568,192
Financial result	–188,095	–562,801
Result from ordinary activities/EBT	–565,408	–1,793,239
Income taxes	11,670	203,138
Consolidated profit for the period	–553,738	–1,590,101
Average number of shares	13,932,312	13,954,412
Earnings per share (basic = diluted)	–0.04	–0.11

Consolidated Statement of Comprehensive Income

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

	Jan 1 to	Jan 1 to
	Mar 31,2014 Mar 31,2013
	€k	€k
Results after taxes	–554	–1,590
Actuarial gains/losses from defined benefit obligations and similar obligations	–6	0
Items, which will not be reclassified subsequently to profit and loss	–6	0
Changes in the fair value of financial instruments used for
hedging purposes recognized under equity	0	356
Adjustment item for the currency translation of foreign
subsidiaris and currency changes	256	–51
Exchange differences on net investments in subsidiaries	–199	–14
Deferred taxes	0	–138
Items, which might be reclassified subsequently to profit and loss	57	153
Valuation gains/losses recognized directly in equity	51	153
Total income and expense and valuation in gains/losses recognized directly in equity	–503	–1,437

Consolidated Balance Sheet

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

Assets		Mar 31, 2014 Dec 31, 2013
	€	€
Non-current assets
Property, plant and equipment	33,998,565	35,211,085
Goodwill		42,312,229 42,311,998
Intangible assets	7,319,131	7,745,811
Trade receivables	1,737,087	1,846,066
Tax receivables	133,137	133,136
Other assets	291,954	343,984
Deferred tax assets	4,575,155	4,265,351
Total non-current assets	90,367,258	91,857,431
Current assets
Inventories		35,546,692 34,268,213
Trade receivables	35,766,899	39,651,577
Tax receivables	3,685,382	1,305,868
Other assets	4,139,756	3,374,816
Cash and bank balances	6,785,307	3,762,699
Total current assets	85,924,036	82,363,173
Total assets		176,291,294 174,220,604

Equity and liabilities		Mar 31, 2014 Dec 31, 2013
	€	€
Equity
Subscribed capital		40,000,000 40,000,000
thereof contingent capital	8,000,000	8,000,000
Capital reserves		36,463,441 36,463,441
Treasury shares	–417,067	–417,067
Other reserves and currency translation effects	–2,643,744	–2,694,456
Profit carried forward	14,472,900	3,274,210
Consolidated profit for the period	–553,738	11,198,690
	87,321,792	87,824,818
Non-current liabilities
Interest-bearing loans	0	0
Finance leasing	3,168,924	3,512,258
Provisions for pensions	8,309,712	8,328,412
Trade payables	23,750	36,695
Other nun-current provisions	3,858,248	4,072,937
Other nun-current liabilities	1,626,879	1,886,325
Deferred revenue	600,560	728,398
Deferred tax liabilities	2,990,554	3,127,569
Total non-current liabilities		20,578,627 21,692,594
Current liabilities
Interest-bearing loans	221,540	1,020,049
Finance leasing	1,957,154	2,119,851
Prepayments on orders	7,004,955	3,449,572
Trade payables	9,000,396	8,735,923
Other liabilities for taxes and levies	4,233,784	4,600,688
Other liabilities for social security	965,626	1,014,434
Tax liabilities	3,297,734	1,284,271
Other current liabilities		22,358,424 22,946,565
Other current provisions		12,621,557 12,606,005
Deferred Income	6,729,705	6,925,834
Total current liabilities	68,390,875	64,703,192
Total equity and liabilities		176,291,294 174,220,604

Consolidated Cash Flow Statement

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

	Jan 1 to	Jan 1 to
		Mar 31,2014 Mar 31,2013
	€k	€k
EBT	–565	–1,793
Adjustments to reconcile profit before tax to net cash flows not affecting cash:
Amortization, depreciation and impairment of non-current assets	2,405	2,507
Gain/loss from disposals of non-current assets	63	–16
Other gains/losses	–1,043	–1,189
Interest income	–84	–5
Interest expense	272	568
Movements in provisions	–208	–1,289
Changes in net working capital:
Increase/decrease in trade receivables	4,064	3,319
Increase/decrease in inventories	–1,276	277
Increase/decrease in trade payables	259	5,600
Changes in other net working capital	3,311	77
Income tax paid	–1,819	–2,554
Cash inflow from operating activities (net cash flow)	5,379	5,502
Purchase of property, plant and equipment (without finance leasing)	–942	–1,106
Proceeds from sale of property, plant and equipment	127	79
Cash outflow from investment activities	–815	–1,027
Repayment of non-current liabilities to banks	0	–5,003
Acquisition of treasury shares	0	–171
Interest received	10	5
Interest paid	–245	–293
Repayment and raising of liabilities from finance leases	–531	–652
Net cash flows used in financing activities	–766	–6,114
Net increase/decrease in cash and cash equivalents	3,798	–1,639
Net foreign exchange difference in cash and cash equivalents	23	–198
Cash and cash equivalents at January 1	2,743	3,530
Cash and cash equivalents at March 31	6,564	1,693
Composition of cash and cash equivalents for cash flow purposes:
Cash and cash equivalents	6,785	3,348
Current bank liabilities	–221	–1,655
Cash and cash equivalents at March 31	6,564	1,693

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.

€k	Number of	Subscribed	Capital	Treasury	Other	Exchange	Profit carried	Total
	shares in units	capital	reserve	shares	reserves	effects	forward
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					342	–51		291
Taxes on transactions recognized
directly in equity					–138			–138
Acquisition of treasury shares	–12,424			14				14
Consolidated earnings for the period							–1,590	–1,590
As of March 31, 2013	13,932,312	40,000	36,464	–417	–2,800	10	9,764	83,021
As of January 1, 2014	13,932,312	40,000	36,464	–417	–2,876	181	14,473	87,825
Income and expenses recognized
directly in equity					–205	256		51
Taxes on transactions recognized
directly in equity					0			0
Consolidated earnings for the period							–554	–554
As of March 31, 2014	13,932,312	40,000	36,464	–417	–3,081	437	13,919	87,322

Notes to the Interim Condensed Consolidated Financial Statements of WashTec AG (IFRS) for the period January 1 to March 31, 2014

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 March 31, 2014 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, 2013.

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, 2013, 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.

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

Standards/ Inter pretations	Descriptive heading	Key content	EU adoption	Mandatory application for WashTec fiscal years beginning
IFRS 10, IFRS 12 and IAS 27	Amendment of IFRS 10, IFRS 12 and IAS 27: Investment Entities	The amendments define across standards when a corporate entity is an investment entity and how its own investments must be presented.	yes	January 2014
IAS 36	Amendment of IAS 36: Recoverable Amount Disclosures for non-financial assets	The duty for disclosing the recoverable amount will be exempted, if no impairment was required.	yes	January 2014
IAS 39	Amendment of IAS 39: Novation of Derivatives and Continua tion of Hedge Accounting	Amendment provides that under certain conditions, the novation of a hedge does not necessarily lead to a termination.	yes	January 2014
IFRS 10	Consolidated Financial Statements	IFRS 10 supersedes the previous consolidation rules of IAS 27 as well as SIC-12. In the future, the control over another company will be the single permissible requirement for the consolidation.	yes	January 2014
IFRS 11	Joint Arrangements	IFRS 11 replaces IAS 31 and SIC 13 and governs the accounting for situations in which a company exercises joint management over a joint enterprise, assets or a joint business.	yes	January 2014
IFRS 12	Disclosure of Interests in Other Entities	IFRS 12 governs the disclosure duties for all forms of ownership inter est such as subsidiaries, joint ventures and associated enterprises as well as non-consolidated corporate shares.	yes	January 2014
IAS 27	New version of IAS 27: Separate Financial Statements	Due to the enactment of IFRS 10 and IFRS 12, IAS 27 will in the future contain only the provisions on the accounting related to subsidiaries, joint ventures and associated companies in the separate financial state ments.	yes	January 2014
IAS 28	Revision of IAS 28: Investments in Associates and Joint Ventures	Due to the enactment of IFRS 11 and IFRS 12, IAS 28 will in the future also contain accounting rules for joint ventures, which must be consoli dated according to the equity method; the application of proportion ate consolidation is no longer permitted.	yes	January 2014
IFRIC 21	Levies	Guideline for the levy of government imposed fees.	planned for Q2/2014	January 2014
IAS 32	Financial Instruments: Presentation – Offsetting Financial Assets and Finan cial Liabilities	Elimination of inconsistencies in the implementation of offsetting financial assets and financial liabilities.	yes	January 2014
IFRS 10–12	Amendments to IFRS 10–12: Transitional Guidance	The amendments contain clarifications and simplifications in the event of an early adoption of IFRS 10–12 (including, inter alia, waiving prior year comparative information).	yes	January 2014

3. Equity Capital

The subscribed capital of WashTec AG on March 31, 2014 equaled € 40m. This capital is divided into 13,976,970 no-par value shares and has been fully paid-in.

For technical reasons, the current stock buyback program has been suspended until further notice. As of the balance sheet date, the remaining average number of shares equaled 13,932,312.

4. Additional information about the financial instruments

The following table, which is derived from the relevant balance sheet items, shows the allocation of the financial instruments to the IAS 39 categories and the valuation approaches related thereto.

In €k	Measurement category under IAS 39	Carrying value Mar 31, 2014	Over the top balance sheet valuation under IAS 39 Amortized Fair Value Fair Value costs in equity through profit and loss		Balance sheet under IAS 17	Fair Value valuation Mar 31, 2014	IFRS 7 Level
Assets
Cash and cash equivalents	LaR	6,785	6,785	–	–	–	6,785	2
Trade receivables	LaR	37,504	37,504	–	–	–	37,504	2
Other financial assets	LaR	1,111	1,111	–	–	–	1,111	2
Liabilities
Trade payables	FLAC	9,024	9,024	–	–	–	9,024	2
Interest bearing loans	FLAC	3,390	3,390	–	–	–	3,390	2
Other financial liabilities	FLAC	14,023	14,023	–	–	–	14,023	2
Finance lease liabilities	n.a.	5,126	–	–	–	5,126	5,126	2
Derivatives financial liabilities		861	–	–	861	–	861	2
Aggregated presentation per IAS 39
measurement categories:
Loans and Receivables (LaR)			45,400	–	–
Financial Liabilities Measured at
Amortised Cost (FLAC)			26,437	–	–
Financial Liabilities through
profit&loss (FLthp&l)			–	–	861

In €k	Measurement category	Carrying value		Over the top balance sheet valuation under IAS 39		Balance sheet	Fair Value valuation Mar 31, 2013	IFRS 7 Level
	under IAS 39	Dec 31, 2013	Amortized costs	Fair Value	Fair Value in equity through profit	under IAS 17
					and loss
Assets
Cash and cash equivalents	LaR	3,763	3,763	–	–	–	3,763	2
Trade receivables	LaR	41,498	41,498	–	–	–	41,498	2
Other financial assets	LaR	1,103	1,103	–	–	–	1,103	2
Liabilities
Trade payables	FLAC	8,773	8,773	–	–	–	8,773	2
Interest bearing loans	FLAC	1,020	1,020	–	–	–	1,020	2
Other financial liabilities	FLAC	11,806	11,806	–	–	–	11,806	2
Finance lease liabilities	n.a.	5,632	–	–	–	5,632	5,632	2
Derivatives financial liabilities		943	–	–	943	–	943	2
Aggregated presentation per IAS 39
measurement categories:
Loans and Receivables (LaR)			46,364	–	–	–
Financial Liabilities Measured at
Amortised Cost (FLAC)			21,599	–	–	–
Financial Liabilities through
profit&loss (FLthp&l)			–	–	–	943

The carrying amounts of cash and cash equivalents, trade and other receivables and trade payables with a remaining term of up to twelve months, other current financial liabilities represent a reasonable approximation of their fair value, mainly due to the short-term maturities of these instruments. The respective financial instruments need to be assigned to their corresponding IFRS 7 hierachy level.

Level 1: quoted prices in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Level 3: inputs for assets or liabilities not based on Observable market data. The derivative financial instruments shown under level 2 include foreign exchange forwards and interest swaps. These foreign exchange forwards are recognized at fair value using the anticipated exchange rates which are quoted on a regular market. Interest rate swaps are recognized at fair value using the antizipated interest rates using recognized yield curves.

5. Notes after the balance sheet date

There were no events after the balance sheet date, which would have had a material effect on the net assets, financial position or results of operation of the Group.

6. Segment reporting

Jan – Mar 2014	Core	Eastern	Northern	Asia/	Consoli-	Group
€k	Europe	Europe	America	Pacific	dation
Revenue	54.300	2.488	9.070	2.424	–3.475	64.807
thereof third party	50.862	2.484	9.037	2.424	0	64.807
thereof with other segments	3.438	3	33	0	–3.475	0
Operating result	366	–192	–378	–138	–35	–377
Financial result						84
Financial expenses						–272
Results from ordinary business activities						–565
Income tax expense						12
Consolidated result						–554

Jan–Mar 2013	Core	Emerging	North	Asia/	Consoli-	Group
in €k	Europe	Europe	America	Pacific	dation
Revenues	52,510	3,564	10,364	3,092	–4,214	65,317
thereof with third parties	48,880	3,548	10,252	3,093	–456	65,317
thereof with other segments	3,630	16	112	–1	–3,757	0
Operating result	–1,106	176	–271	–113	84	–1,230
Financial result						5
Financial expenses						–568
Results from ordinary business activities						–1,793
Income tax expense						203
Consolidated result						–1,590

7. Information about related party transactions

No significant transactions with related parties within the meaning of IAS 24 occurred during the reporting period.

8. Contingent liabilities and other financial obligations

Compared to December 31, 2013, contingent liabilities and other financial obligations remain mostly unchanged.

Contact

WashTec AG Telefon +49 821 5584-0 Argonstraße 7 Telefax +49 821 5584-1135 86153 Augsburg www.washtec.de washtec@washtec.de

Financial Calendar

Annual general meeting June 4, 2014 6-month report August 7, 2014 9-month report November 4, 2014 Equity Capital Forum in Frankfurt am Main

Analysts Conference/ November 24 –26, 2014