Report on the period from January 1 to September 30, 2016

q32016

First nine month revenues 5.7% up on prior year Jan 1 to Sep 30, 2016 Jan 1 to

Revenues at €259.8m after nine months (prior year: €245.8m); EBIT at €25.2m (prior year: €23.3m)
Year-end estimation of at least 7.5% growth
Customer Center opened in Augsburg
Order backlog above prior year high revenue growth expected in the coming months

			Jan 1 to	Change
		Sep 30, 2016	Sep 30, 2015	absolute	in %
Revenues	€ m	259.8	245.8	14.0	5.7
EBITDA	€ m	32.0	30.5	1.5	4.9
EBIT	€ m	25.2	23.3	1.9	8.2
EBIT margin	in %	9.7	9.5	0.2
EBT	€ m	25.0	22.9	2.1	9.2
Employees at reporting date	persons	1,769	1,681	88	5.2
Average number of shares		units 13,382,324	13,904,813	–522,489	–3.8
Earnings per share1	€	1.30	1.11	0.19	17.1
Free cash flow2	€ m	14.8	14.0	0.8	5.7
Capital expenditure	€ m	14.2	4.0	10.2	255.0
Capital ratio at reporting date3	in %	36.3	37.0	0.7	1.9

3rd Quarter 2016		Jul 1 to	Jul 1 to Sep	Change
		Sep 30, 2016	30, 2016	absolute	in %
Revenues	€ m	90.6	85.2	5.4	6.3
EBITDA	€ m	12.1	11.9	0.2	1.7
EBIT	€ m	9.7	9.5	0.2	2.1
EBIT margin	in %	10.7	11.2	0.5
EBT	€ m	9.6	9.4	0.2	2.1
Average number of shares		units 13,382,324	13,847,698	–465,374	–3.4
Earnings per share1	€	0.50	0.48	0.02	4.2

Basic = diluted

Net cash flow – net cash flows from investing activities

3 Equity capital/balance sheet total

Interim Group Management Report for the period from January 1 to September 30, 2016

	1. Overall revenues and earnings development .	5
2.	Report on economic position .	5
2.1	Economic and competitive environment .	5
2.2	Earnings .	5
2.3	Net assets .	8
2.4	Financial position .	9
2.5	Employees .	9
3.	Outlook, opportunities and risk report .	10
3.1	Outlook	10
3.2	Opportunities and risks for group development .	10
4.	Miscellaneous information .	10
4.1	Related party disclosures .	10
4.2	Events after the reporting period .	10
5.	WashTec shares and investor relations	11
5.1	Share price development	11
5.2	Shareholder structure	11

Interim Condensed Consolidated Financial Statements for the period from January 1 to Sep 30, 2016

Consolidated Income Statement	13
Consolidated Statement of Comprehensive Income	14
Consolidated Balance Sheet	15
Consolidated Cash Flow Statement	16
Statement of Changes in Consolidated Equity	17
Notes to the Interim Condensed Consolidated
Financial Statements of WashTec AG (IFRS) for the
period from January 1 to September 30, 2016	19
Contact	27
Financial Calendar	27

Interim Group Management Report

1. Overall revenues and earnings development

Revenue growth at 5.7% as of September

Revenues per September 2016, at €259.8m, were €14.0m (5.7%) higher than in the prior-year period (€245.8m). Revenue growth in the third quarter was €5.4m or 6.3%.

Equipment and Service but also Chemicals showed an increase on the prior-year period. Investments into global sales and marketing activities as well as a higher sales efficiency contributed to the growth. Adjusted for currency effects, revenues in the first nine months increased by 6.5%. Mainly due to the positive revenues performance, EBIT improved to €25.2m (prior year: €23.3m) while at the same time investment was made in further growth. The Company has thus generated an EBIT margin of 9.7% after nine months of the year (prior year: 9.5%).

September was the opening of the new Customer Center at the Augsburg headquarters. This enables customers to experience the latest products and innovations in a highly attractive, modern setting. The opening ceremony was held as part of a 'Family & Friends Day` attended by some 1,900 members of the WashTec workforce together with family members and friends from Germany and abroad.

At the Automechanika trade fair in Frankfurt, the Company successfully exhibited to trade visitors with a special focus on the individual customer benefit.

The order backlog at the end of the third quarter was significantly up on the prior year.

Therefore the company expects that the revenue growth will be at least 7.5% for the full year. On current estimates, the EBIT margin will be above the prior year.

2. Report on economic position

2.1 Economic and competitive environment

The economic and competitive environment largely corresponded to the situation described in the Group Management Report 2015. There were no significant changes in technology and none are foreseeable.

2.2 Earnings

2.2.1 Revenues by segments and products

Revenues by segment, Jan 1 to Sep 30
in € m. IFRS	Jan 1 to	Jan 1 to		Change
(rounding differences possible)	Sep 30, 2016	Sep 30, 2015	absolute	in %
Core Europe	213.7	200.7	13.0	6.5
North America	38.5	40.0	–1.5	–3.8
Asia/Pacific	13.1	10.9	2.2	20.2
Consolidation	–5.5	–5.8	0.3
Total Group	259.8	245.8	14.0	5.7

Revenues increase in Asia-Pacific of 11.1% in the third quarter

Revenues by segment, Q3
in € m, IFRS	Jul 1 to	Jul 1 to	Change
(rounding differences possible)	Sep 30, 2016	Sep 30, 2015	absolute	in %
Core Europe	75.2	70.7	4.5	6.4
North America	13.6	12.8	0.8	6.2
Asia/Pacific	4.0	3.6	0.4	11.1
Consolidation	–2.3	–1.9	–0.4
Total Group	90.6	85.2	5.4	6.3

All segments contributed to the revenue growth in the third quarter. The largest absolute increase was in the Core Europe segment. Almost all markets in Europe developed positively. Following on from the strong growth in the last few quarters, business in the Asia/ Pacific region once again developed well in the third quarter.

After an 8.8% decrease relative to the prior year in the first half due to the loss of a major customer in 2015, revenues in North America went up by 6.2% in the third quarter compared with the prior year. Further revenue growth is expected in the last quarter. Therefore the company expects a revenue growth for the full year as well.

In local currency, January to September revenue was USD 42.8m (prior year: USD 44.5m) and thus 3.8% below prior year.

Group revenues increased in the third quarter by 6.3% (Q3 2016: €90.6m; Q3 2015: €85.2m).

Revenues by product, Jan 1 to Sep 30

in € m, IFRS	Jan 1 to	Jan 1 to	Change
(rounding differences possible)	Sep 30, 2016	Sep 30, 2015	absolute	in %
Equipment and Service	220.2	207.2	13.0	6.3
Chemicals	29.8	28.5	1.3	4.6
Operations business and others	9.8	10.1	–0.3	–3.0
Total	259.8	245.8	14.0	5.7

Revenues by product, Q3
in € m, IFRS	Jul 1 to	Jul 1 to	Change
(rounding differences possible)	Sep 30, 2016	Sep 30, 2015	absolute	in %
Equipment and Service	77.6	74.3	3.3	4.4
Chemicals	9.4	7.8	1.6	20.5
Operations business and others	3.6	3.1	0.5	16.1
Total	90.6	85.2	5.4	6.3

Equipment and Service revenues went up by 6.3% from €207.2m to €220.2m. Chemicals revenues, after falling short of the prior year in the first six months due to the loss of a major customer, increased due to the strong third quarter by 4.6% to €29.8m. Chemicals growth in Europe was above expectations at over 17% compared with the prior year. The capital expenditure at the Grebenau chemicals production location also paves the way for future growth in chemicals.

2.2.2 Expense items and earnings

9.7% EBIT margin as of

third quarter Earnings, Jan 1 to Sep 30 in € m, IFRS (rounding differences possible) Jan 1 to Sep 30, 2016 Jan 1 to Sep 30, 2015 Change absolute in % Gross profit* 156.0 148.2 7.8 5.3 EBITDA 32.0 30.5 1.5 4.9 EBIT 25.2 23.3 1.9 8.2 EBT 25.0 22.9 2.1 9.2

* Revenues plus change in inventory minus cost of materials

Earnings, Q3
in € m, IFRS	Jul 1 to	Jul 1 to	Change
(rounding differences possible)	Sep 30, 2016	Sep 30, 2015	absolute	in %
Gross profit*	54.2	51.5	2.7	5.2
EBITDA	12.1	11.9	0.2	1.7
EBIT	9.7	9.5	0.2	2.1
EBT	9.6	9.4	0.2	2.1

* Revenues plus change in inventory minus cost of materials

The gross profit margin remained broadly constant, at 60.0% compared with 60.3% in the prior year.

Personnel expenses increased by €6.5m to €90.1m (prior year: €83.6). The Group reported 88 FTE more as of the end of September than in the same period of the prior year. As already communicated, the increase in headcount took place mainly in the Sales and Supply Chain functions due to the positive development of the business and by way of investment in further organic growth. This substantial growth in the workforce will slow down in the quarters ahead. Alongside recruitment, the increase in personal expenses was also driven by collectively agreed wage increases and pay adjustments.

Other operating expenses (including other taxes) increased by €1.0m to €38.7m (prior year: €37.7m). The increase was driven by further workplace improvements, investments in the Augsburg location – among other things for the new Customer Center and the amalgamation of functions at the headquarters – and higher expenditure on contract workers. Exhibiting at Uniti expo in Stuttgart and Automechanika in Frankfurt incurred additional costs.

Expenses were also up over the year so far due to currency losses accounted for in other operating expenses. Currency gains and losses did not have a material net impact on Group earnings or the prior-year comparative figures, however.

The positive effect of the reduction in vehicle costs continued through the third quarter and offset some of the cost increases.

EBIT by segments, Jan 1 to Sep 30
in € m, IFRS	Jan 1 to	Jan 1 to		Change
(rounding differences possible)	Sep 30, 2016	Sep 30, 2015	absolute	in %
Core Europe	23.8	21.8	2.0	9.2
North America	0.1	1.2	–1.1	–92
Asia/Pacific	1.1	0.3	0.8	267
Consolidation	0.2	0.0	0.2
Group	25.2	23.3	1.9	8.2

EBIT nach Segmenten, Q3
in € m, IFRS	Jul 1 to	Jul 1 to	Change
(rounding differences possible)	Sep 30, 2016	Sep 30, 2015	absolute	in %
Core Europe	9.6	9.9	–0.3	–3.0
North America	0.1	–0.2	0.3	300
Asia/Pacific	0.0	0.1	–0.1	–100
Consolidation	0.0	–0.3	0.3
Group	9.7	9.5	0.2	2.1

EBIT Jan 1 through Sep 30 in € m, IFRS

EBITDA increased by €1.5m to €32.0m (prior year: €30.5m).

EBIT increased by €1.9m to €25.2m (prior year: €23.3m).

The EBIT increase in the Core Europe and Asia/Pacific segments is mainly a result of the revenue growth. In the North America segment, the shortfall in earnings compared with the prior year was slightly narrowed in the third quarter.

Movements in the US dollar-euro exchange rate had no material impact on the operating business. Measurement of foreign currencydenominated assets and liabilities as of the reporting date had a €–0.4m impact on earnings (prior year: €–0.5m).

Consolidated net income increased to €17.4m (prior year: €15.5m). As was the case for the first half year, a tax refund, including a corresponding refund of interest, from a mutual agreement procedure in prior years resulted in a lower tax rate and the improved financial result.

Earnings per share (basic = diluted) increased to €1.30 (prior year: €1.11) due to the higher consolidated net income and smaller average number of shares.

EPS 17.1% up on prior year

2.3 Net assets

Balance Sheet Assets in € m, IFRS	Sep 30,	Dec 31,
(rounding differences possible)	2016	2015
Non-current assets	93.7	85.8
thereof intangible assets	5.9	5.3
thereof taxes	3.7	4.2
Current assets	109.9	104.3
thereof inventories	44.1	39.9
thereof trade receivables, other assets	52.9	49.2
thereof cash and cash equivalents	7.2	7.8
Total assets	203.6	190.0

Balance Sheet Liabilities in € m, IFRS	Sep 30,	Dec 31,
(rounding differences possible)	2016	2015
Equity capital	73.8	80.3
Liabilities to banks	14.3	5.3
Other liabilities and provisions	103.4	91.7
thereof trade payables	12.7	7.5
thereof provisions (including income tax debt)	37.3	34.6
Deferred income	8.8	9.0
Deferred tax liabilities	3.3	3.8
Total equity and liabilities	203.6	190.0

Despite the seasonal increase in trade receivables and higher stocks of finished goods for customer orders, net working capital (current trade receivables + inventories – current trade payables) increased only slightly by 2.6% from €78.1m as of December 31, 2015 to €80.1m.

The equity ratio fell slightly in the third quarter to 36.3% and as a result of the dividend payment is still slightly below the 37.0% prioryear figure. Compared with the 2015 year-end, the equity ratio decreased from 42.2% to 36.3%.

Net debt (long-term and short-term bank debt – bank deposits) stood at €7.0m as of the end of September (December 31, 2015: net cash position of €2.5m).

Net financial debt (short-term and long-term finance leasing + net debt) increased to €10.3m (December 31, 2015: €1.9m).

Other liabilities and provisions increased to €103.4m, mainly because of higher trade payables and higher tax liabilities (December 31, 2015: €91.7m).

2.4 Financial position

Marked increase in net cash flow

The cash inflow from operating activities (net cash flow) increased in the first nine months to €28.5m (prior year: €17.6m). Besides the higher earnings, this was mainly driven by a smaller increase in working capital relative to the prior-year period and the previously communicated refund of withholding tax on investment income in the first quarter.

The cash outflow from investing activities increased substantially as planned to €13.6m (prior year: €3.7m). The customer center in Augsburg was completed in September. The expanded production facility in Grebenau is expected to go into operation at the end of the year and in full during the first quarter of 2017. After the high level of investment this year, capital expenditure will be below €10.0m per year in the years ahead.

Free cash flow (net cash flow – net cash flows from investing activities) rose by €0.8m from €14.0m to €14.8m.

Overall, as a result of the dividend payment, cash and cash equivalents declined relative to December 31, 2015 by €9.5m to €–7.0m.

2.5 Employees

The number of employees as of September 30, 2016 was 1,769, marking an increase of 80 on the 2015 year-end. Compared with September 30, 2015, the number of employees increased by 88, with most of the increase in the Sales and Supply Chain functions.

Number of employees at WashTec Group reaches 1,769

3. Outlook, opportunities and risk report

3.1 Outlook

Initiatives to boost global sales and marketing activities and for organizational development and operational improvement continue.

On account of the large order backlog and the sustained positive trend both in business with major customers and with other customer groups, a high level of capacity utilization is expected in production and installation in the last quarter in both Europe and North America.

The company expects that the revenue growth of 5.7% will be clearly exceeded for the full year. On current estimates, the EBIT margin will be above the prior year. The company likewise expects substantial growth compared with the prior year for Q1 2017.

The outlook given for the individual segments in the 2015 Annual Report is thus generally confirmed for 2016.

3.2 Opportunities and risks for group development

The WashTec Group's risk management system is described in the Annual Report 2015. There have been no material changes in the risks described therein. The Brexit Referendum is not expected to have any material impact in 2016. The half-year appraisal that the medium-term impacts will be relatively small continues to apply unchanged.

The fact that the order backlog is above expectations is partly due to the pick-up in business with major customers in the third quarter. The opportunities identified with some customers in this segment for the last two quarters will begin to be realized in the quarters ahead.

4. Miscellaneous information

4.1 Related party disclosures

There were no material related party transactions during the reporting period.

4.2 Events after the reporting period

There were no material events after the reporting period.

5. WashTec shares and investor relations

The Management Board communicated with shareholders, journalists and the financial community on an ongoing basis through the year. In the course of its investor relations activities, the Management Board held several roadshows in Düsseldorf and London and took part during the third quarter in the Baader Bank Investment Conference in Munich.

5.1 Share price development

Share price €42.20 as of September 30,2016

The WashTec share price stood at €42.20 on September 30, 2016. That marks a 38.4% increase on the prior year-end closing price of €30.50 on December 30, 2015. The share price reached an all-time high of €45.00 on October 20, 2016. The performance of the SDAX over the same period was at 3.87%.

WashTec AG is currently covered by Hauck & Aufhäuser, HSBC Trinkaus & Burkhardt, MM Warburg and Bankhaus Lampe. The price target given by all analysts, latest Bankhaus Lampe on October 26, 2016 is at least €34.00 and ranges up to €51.00 (as of October 2016).

5.2 Shareholder structure

WashTec AG received the following voting rights notifications under the Securities Trading Act (Wertpapierhandelsgesetz) in the third quarter of 2016:

On July 21, 2016, WashTec AG received notification that the percentage of voting rights held by Diversity Industrie Holding AG as of July 19, 2016 was 4.0% (previously 6.19%).

On August 11, 2016, the Company was notified that the percentage of voting rights held by Desmarais Family Residuary Trust passed below the threshold of 3.0% on August 10, 2016 and was now 2.99%.

Shareholding in %	Sep 30, 2016
Kempen Oranje Participaties N.V.	10.73
EQMC Europe Development Capital Fund plc1	9.78
Dr. Kurt Schwarz2	8.38
Paradigm Capital Value Fund	6.01
BNY Mellon Service Kapitalanlage-Gesellschaft mbH	5.61
Investment AG für langfristige Investoren TGV	5.43
Lazard Frères Gestion S.A.S.	4.94
WashTec AG – own shares	4.25
Diversity Industrie Holding AG	4.00
Desmarais Family Residuary Trust3	2.99
Free float	37.88
1 Nmás1 Dinamia, S.A. 2 Leifina GmbH & Co. KG et al 3 Setanta Asset Management Based on notifications made pursuant to the WpHG

Manager Transactions

No manager transactions were reported in the third quarter.

Interim Condensed Consolidated Financial Statements

Consolidated Income Statement

in €	Jan 1 to	Jan 1 to	Jul 1 to	Jul 1 to
	Sep 30, 2016	Sep 30, 2015	Sep 30, 2016	Sep 30, 2015

Revenues		259,798,573 245,808,116	90,554,790	85,225,877
Other operating income	3,734,281	3,133,720	1,047,844	811,940
Capitalized development costs	1,155,798	425,303	673,282	21,949
Change in inventory	4,368,939	4,788,419	2,352,781	1,859,580
Total		269,057,591 254,155,558	94,628,697	87,919,346

Cost of materials
Cost of raw materials, consumables and supplies and of purchased material	87,216,578	83,112,982	31,364,171	28,595,215
Cost of purchased services	20,985,340	19,327,979	7,283,272	7,028,576
		108,201,918 102,440,961	38,647,443	35,623,791
Personnel expenses	90,082,591	83,574,006	30,570,088	27,994,972

Amortization, depreciation and impairment of tangible
and intangible assets«	6,806,236	7,155,016	2,348,181	2,378,734
Other operating expenses	38,074,893	37,007,782	13,145,177	12,154,893
Other taxes	654,102	649,801	212,143	233,166
Total operating expenses		243,819,740 230,827,566	84,923,032	78,385,556
EBIT	25,237,851	23,327,992	9,705,665	9,533,790

Financial income	284,383	392,038	10,592	136,674
Financial expenses	509,703	775,057	162,109	259,716
Financial result	–225,320	–383,019	–151,517	–123,042
EBT	25,012,531	22,944,973	9,554,148	9,410,748

Income taxes	–7,638,614	–7,469,879	–2,880,186	–2,698,813
Consolidated net income	17,373,917	15,475,094	6,673,962	6,711,935

Weighted average number of outstanding shares	13,382,324	13,904,813	13,382,324	13,932,312
Earnings per share (basic=diluted)	1.30	1.11	0.50	0.48

Consolidated Statement of Comprehensive Income

in €k	Jan 1 to	Jan 1 to	Jul 1 to	Jul 1 to
	Sep 30, 2016	Sep 30, 2015	Sep 30, 2016	Sep 30, 2015

Consolidated net income	17,374	15,475	6,674	6,721

Actuarial gains/losses from defined benefit obligations and similar obligations	–677	0	0	0

Deferred taxes	316	0	0	0

Items that will not be reclassified to profit or loss	–361	0	0	0
Adjustment item for exchange differences on translating foreign operations	–789	933	33	143

Exchange differences on net investments in subsidiaries	181	–559	–103	–452

Deferred taxes	–80	–85	6	1

Items that may be subsequently reclassified to profit or loss	–688	289	–64	–308

Other comprehensive income	–1,049	289	–64	–308

Total comprehensive income	16,325	15,764	6,610	6,404

Consolidated Balance Sheet

The consolidated notes
are an integral component
of the consolidated
financial statements.
Rounding differences
may occur.

Non-current assets	Sep 30,	Dec 31,
in €	2016	2015

Non-current assets

Property, plant and equipment	38,391,737	31,686,043
Goodwill	42,312,373	42,312,251
Intangible assets	5,942,322	5,315,400
Trade receivables	2,706,435	2,000,980
Tax receivables	0	49,939
Other assets	570,024	138,573
Deferred tax assets	3,734,563	4,247,587
Total non-current assets	93,657,454	85,750,773


Current assets

Inventories	44,059,520	39,882,471
Trade receivables	48,759,620	45,770,028
Tax receivables	5,697,618	7,464,788
Other assets	4,160,175	3,380,592
Cash and cash equivalents	7,245,670	7,781,106
Total current assets		109,922,603 104,278,985















Total assets	203,580,057 190,029,758

Liabilities	Sep 30,	Dec 31,
in €	2016	2015

Equity

Subscribed capital	40,000,000	40,000,000
Contingent capital	8,000,000	8,000,000
Capital reserves		36,463,441 36,463,441
Treasury shares		–13,176,788 –13,176,788
Other reserves and exchange rate effects	–3,911,583	–2,862,447
Profit carried forward	–2,906,057	–4,711,829
Consolidated net income (for the period)		17,373,917 24,555,723
		73,842,930 80,268,100

Non-current liabilities

Finance lease liabilities	2,011,722	2,827,417
Provisions for pensions	10,384,676	9,739,511
Other non-current provisions	3,261,541	3,524,250
Other non-current liabilities	2,192,488	1,346,065
Deferred income	1,085,689	1,175,038
Deferred tax liabilities	3,299,229	3,751,367
Total non-current liabilities	22,235,345	22,363,648

Current liabilities
Interest-bearing loans	14,255,170	5,269,040
Finance lease liabilities	1,234,927	1,553,671
Prepayments on orders	8,008,098	6,797,767
Trade payables	12,674,827	7,542,187
Taxes and levies	4,421,049	4,744,575
Liabilities for social security	1,050,429	1,177,977
Tax provisions	11,072,736	8,337,697
Other current liabilities	34,531,095	31,199,342

Other current provisions	12,589,489	12,953,850
Deferred income	7,663,962	7,821,904
Total current liabilities	107,501,782	87,398,010
Total equity and liabilities	203,580,057 190,029,758

Consolidated Cash Flow Statement

The consolidated notes
are an integral component
of the consolidated
financial statements.
Rounding differences
may occur.

in €k	Jan 1 to	Jan 1 to
	Sep 30, 2016	Sep 30, 2015

EBT	25,013	22,945
Adjustments to reconcile EBT to net cash flows from operating activities:
Amortization, depreciation and impairment of tangible and intangible assets	6,806	7,155
Gain/loss from disposals of non-current assets	–391	–130
Other gains/losses	–1,230	–1,058
Financial income	–284	–392
Financial expenses	510	775
Movements in provisions	–653	–362
Changes in net working capital:
Increase/decrease in trade receivables	–4,179	–5,603
Increase/decrease in inventories	–4,524	–5,301
Increase/decrease in trade payables	5,217	3,418
Changes in other net working capital	4,977	4,797
Income tax paid	–2,793	–8,611
Net cash flows from operating activities	28,469	17,633

Purchase of property, plant and equipment (without finance leasing)	–14,221	–3,971
Proceeds from sale of property, plant and equipment	572	318
Net cash flows from investing activities	–13,649	–3,653

Dividend payout	–22,750	–22,988
Share buyback	0	–12,760
Interest received	284	36
Interest paid	–458	–718
Repayment of finance lease liabilities	–1,244	–1,449
Net cash flows from financing activities	–24,168	–37,879

Net increase/decrease in cash and cash equivalents	–9,348	–23,899
Net foreign exchange difference	–173	–375
Cash and cash equivalents at January 1	2,512	15,422
Cash and cash equivalents at September 30	–7,009	–8,852

Composition of cash and cash equivalents for cash flow purposes: Cash and cash equivalents	7,246	6,415
Interest-bearing loans	–14,255	–15,267
Cash and cash equivalents at September 30	–7,009	–8,852

Statement of Changes in Consolidated Equity

The consolidated notes are an integral component of the consolidated financial statements. Rounding differences may occur.

in €k	Number of shares (in units)	Subscribed capital	Capital reserves	Treasury shares	Other reserves	Currency translation effects	Profit carried forward	Total

As of January 1, 2015	13,932,312	40,000	36,464	–417	–4,217	812	18,277	90,917

Income and expenses recognized directly in equity					–559	933		374

Taxes on transactions recognized directly
in equity					–85			–85

Share buyback	–549,988			–12,760				–12,760
Dividend							–22,988	–22,988

Consolidated net income for the period							15,745	15,475

As of September 30, 2015	13,382,324	40,000	36,464	–13,177	–4,861	1,745	10,764	70,933


As of January 1, 2016	13,382,324	40,000	36,464	–13,177	–5,004	2,142	19,845	80,268
Income and expenses recognized directly
in equity					–496	–789		–1,285

Taxes on transactions recognized directly
in equity					236			236
Dividend							–22,750	–22,750

Consolidated net income for the period							17,374	17,374

As of September 30, 2016	13,382,324	40,000	36,464	–13,177	–5,264	1,353	14,469	73,843

Notes to the Interim Condensed Consolidated Financial Statements of WashTec AG (IFRS) for the period January 1 to September 30, 2016

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 in free float and are publicly traded.

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

The consolidated financial statements are presented in euro and, unless otherwise indicated, all figures are rounded to the nearest thousand (€k); this may result in rounding differences.

2. Accounting policies

Basis of preparation of the consolidated financial statements

The same accounting policies have been followed in these interim condensed consolidated financial statements as were applied in preparation of the consolidated financial statements for the fiscal year ended December 31, 2015, with the exception of the computation of taxes. Tax is computed for interim financial statements by multiplying net income with the expected applicable annual tax rate.

The interim condensed consolidated financial statements for the period January 1 to September 30, 2016 have been prepared in accordance with IAS 34 Interim Financial Reporting.

The interim condensed consolidated financial statements do not contain all explanations and disclosures required for annual financial statements and should be read in conjunction with the consolidated financial statements for the fiscal year ended December 31, 2015.

Effects of new financial reporting standards

The Group adopted the following new and revised IFRS Standards and Interpretations in the reporting period:

Standard/ Interpretation	Title	Mandatory application	Endorsement by the EU	Material effects on WashTec
IAS 1	Amendments to IAS 1 Presentation of Financial Statements – Disclosure Initiative	Jan 1, 2016	Dec 18, 2015	none
IAS 16 and IAS 38	Amendments to IAS 16 Property, Plant and Equipment and IAS 38 Intangible Assets – Clarification of Acceptable Methods of Depreciation and Amortization	Jan 1, 2016	Dec 2, 2015	none
IAS 16 and IAS 41	Amendments to IAS 16 Property, Plant and Equipment and IAS 41 Agriculture – Bearer Plants	Jan 1, 2016	Nov 23, 2015	none
IAS 19	Amendments to IAS 19 Employee Benefits – Employee Contributions	Feb 1, 2015	Dec 17, 2014	none
IAS 27	Amendments to IAS 27 Separate Financial Statements – Equity Method in Separate Financial Statements	Jan 1, 2016	Dec 18, 2015	none
IFRS 11	Amendments to IFRS 11 Joint Arrangements – Accounting for Acquisitions of Interests in Joint Operations	Jan 1, 2016	Nov 24, 2015	none
IFRS	Annual Improvements to IFRSs (2012–2014 cycle)	Jan 1, 2016	Dec 15, 2015	none
IFRS 10, IFRS 12 and IAS 28	Amendments to IFRS 10 Consolidated Financial Statements , IFRS 12 Disclosure of Interests in Other Entities and IAS 28 Investments in Associates and Joint Ventures –
	Applying the Consolidation Exception	Jan 1, 2016	Sep 22, 2016	none

The IASB and the IFRS Interpretations Committee have also issued additional standards, interpretations and amendments as listed below, but these did not yet have to be adopted in fiscal year 2016 or have not yet been endorsed by the European Union.

As of September 30, 2016, the WashTec Group had not sdopted these standards earlier than required. First-time adoption of the standards is planned when they are endorsed by the EU.

Standard/ Interpretation	Title	Mandatory application	Endorsement by the EU	Material effects on WashTec
IAS 7	Amendments to IAS 7 Statement of Cash Flows – Disclosure Initiative	Jan 01, 2017	expected in Q4 2016	none
IAS 12	Amendments to IAS 12 Income Taxes – Recognition of Deferred Tax Assets for Unrealised Losses	Jan 01, 2017	expected in Q4 2016	none
IFRS 2	Amendments to IFRS 2 Share-based payments – Classification and Measurement of Share-based Payment Transactions	Jan 01, 2018	expected in H2 2017	none
IFRS 9	Financial Instruments	Jan 01, 2018	expected in Q4 2016	currently reviewed
IFRS 10 und IAS 28	Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investment in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	deferred indefinitely	none
IFRS 14	Regulatory Deferral Accounts	Jan 01, 2016	Postponement of the endorsement process until the publication of the final standard	none
IFRS 15	Revenues from Contracts with Customers	Jan 01, 2018	expected in Q4 2016	currently reviewed
IFRS 16	Leases	Jan 01, 2019	expected in 2017	currently reviewed
IFRS 4	Amendments to IFRS 4: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts	Jan 01, 2018	expected in 2017	none

3. Segment reporting

Due to organizational changes by which the Eastern Europe segment and the previous export activities have been brought together under WashTec Cleaning Technology, WashTec no longer reports separately on the Eastern Europe segment. From fiscal year 2016, Eastern European is part of the Core Europe segment. The structure of the North America and Asia/Pacific segments remains unchanged.

Jan to Sep 2016	Core	North	Asia/Pacific	Consolida	Group
€k, Rounding differences may occur	Europe	America		tion

Revenues	213,702	38,481	13,132	–5,517	259,799
with third parties	208,273	38,393	13,133	0	259,799
with other divisions	5,429	89	0	–5,517	0
EBIT	23,829	69	1,118	222	25,237
Financial income					284
Financial expenses					–510
EBT					25,012
Income taxes					–7,639
Consolidated net income					17,374

Jan to Sep 2015	Core	North	Asia/Pacific	Consolida	Group
€k, Rounding differences may occur	Europe	America		tion

Revenues	200,748	39,975	10,859	–5,774	245,808
with third parties	195,199	39,753	10,856	0	245,808
with other divisions	5,550	222	3	–5,774	0
EBIT	21,836	1,213	323	–43	23,329
Financial income					392
Financial expenses					–775
EBT					22,946
Income taxes					–7,470
Consolidated net income					15,475

4. Equity

The subscribed capital of WashTec AG as of September 30, 2016 is €40,000k. It is divided into 13,976,970 no-par-value bearer shares and is fully paid in.

The average number of issued and outstanding shares as of September 30, 2016 is 13,382,324.

The Annual General Meeting of WashTec AG on May 11, 2016 resolved to appropriate the distributable profit of €22,983,636.87 shown in the Company's annual financial statements for fiscal year 2015 as follows: Payment of a dividend of €1.70 per eligible share, totaling €22,749,950.80 and the remaining distributable profit of €233,686.07 to be carried forward to a new account.

As the authorization to acquire treasury shares granted by resolution of the Annual General Meeting of May 15, 2013 expired on May 14, 2016, a resolution was passed at this year's Annual General Meeting to revoke the previous authorization and to grant the Company renewed authorization to acquire and use treasury shares. The Management Board is thus authorized, acting with the consent of the Supervisory Board, to increase the registered share capital on one or more occasions by up to a total of €8,000k (Authorized Capital) by issuing new no-par bearer shares in exchange for cash and/or non-cash contributions.

The Management Board is further authorized, acting with the consent of the Supervisory Board, on one or more occasions on or before May 10, 2019, to issue bearer or registered warrant-linked bonds and/or convertible bonds, participation rights or participating bonds or a combination of such instruments with a total face value of up to €50,000k with or without term limitations. Holders or creditors of warrant-linked bonds, option participation rights or option participating bonds can thus, subject to the bond terms and conditions, be granted or assigned option rights or obligations for no-par-value bearer shares in the Company accounting for a pro rata amount of the registered share capital totaling up to €8,000k. The same applies for holders or creditors of convertible bonds, convertible participation rights or convertible participating bonds and the corresponding conversion rights or duties.

The Annual General Meeting also authorized the Management Board, on or before May 10, 2019 and for purposes other than to trade in the Company's own shares, to acquire the Company's own shares in the amount of up to 10% of the registered share capital of €40,000k at the time of the resolution.

5. Financial instruments: additional disclosures

The following table, which is derived from the relevant balance sheet items, shows the relationships between the classification and measurement of financial instruments.

Carrying amounts, measurement and fair value by category:

€k	Measurement	Carrying	Measurement under IAS 39			Measurement	Fair Value	IFRS 13
	category	amount	Amortized	Fair Value in	Fair Value	under IAS 17	Sep 30, 2016	Level
	according to	Sep 30, 2016	cost	equity	through
	IAS 39				profit or loss
Assets
Cash and cash equivalents	LaR	7,246	7,246	–	–	–	7,246
Trade receivables	LaR	51,466	51,466	–	–	–	51,466
Other financial assets	LaR	930	930	–	–	–	930
Liabilities
Trade payables	FLAC	12,675	12,675	–	–	–	12,675
Interest-bearing loans	FLAC	14,255	14,255	–	–	–	14,255
Other financial liabilities	FLAC	19,542	19,542	–	–	–	19,542
Finance lease liabilities	n.a.	3,247	–	–	–	3,247	3,247
Derivative financial liabilities	FVthP/L	4	–	–	4	–	4	2
Aggregated presentaion per IAS 39 measurement categories
Loans and Receivables (LaR)		59,642	59,642	–	–
Financial Liabilities Measured at Amortised Cost (FLAC)		46,472	46,472	–	–
Fair Value Through Profit/Loss (FVthP/L)		4	–	–	4

€k	Measurement	Carrying	Measurement under IAS 39			Measurement	Fair Value	IFRS 13
	category	value	Amortized	Fair Value in	Fair Value	under IAS 1	Dec 31, 2015	Level
	according to	Dec 31, 2015	cost	equity	through
	IAS 39				profit or loss
Assets
Cash and cash equivalents	LaR	7,781	7,781	–	–	–	7,781
Trade receivables	LaR	47,771	47,771	–	–	–	47,771
Other financial assets	LaR	809	809	–	–	–	809

Liabilities
Trade payables	FLAC	7,542	7,542	–	–	–	7,542
Interest-bearing loans	FLAC	5,269	5,269	–	–	–	5,269
Other financial liabilities	FLAC	17,031	17,031	–	–	–	17,031
Finance lease liabilities	n.a.	4,381	–	–	–	4,381	4,381
Derivative financial liabilities	FVthP/L	312	–	–	312	–	312	2
Aggregated presentaion per IAS 39 measurement categories
Loans and Receivables (LaR)		56,361	56,361	–	–
Financial Liabilities Measured at Amortised Cost (FLAC)		29,842	29,842	–	–
Fair Value Through Profit/Loss (FVthP/L)		312	–	–	312

Due to their short terms, the fair values of trade receivables, trade payables and cash and cash equivalents as well as other financial assets and other financial liabilities generally match their carrying amounts. The fair value of finance lease and loan liabilities is determined by discounting the expected future cash flows at current market interest rates.

Foreign exchange forwards are measured at fair value using expected exchange rates quoted on a regulated market. Interest rate swaps were measured in the prior year at fair value using expected interest rates under recognizable yield curves. The interest rate swaps expired as of December 31, 2015.

The fair value of the derivative financial instruments is classified by maturity as follows:

€k	Sep 30,	Dec 31,
	2016	2015
Non-current	0	0
Current	4	312
Total	4	312

6. Contingent liabilities and other financial obligations

There was no material change in contingent liabilities and other financial obligations relative to December 31, 2015.

7. Related party disclosures

There were no material related party transactions within the meaning of IAS 24 during the reporting period.

8. Notes after the balance sheet date

There were no significant events after the balance sheet date.

Contact

WashTec AG Phone +49 821 5584-0 86153 Augsburg www.washtec.de

Financial Calendar

Annual report 2016 March 22, 2017 Q1 Report 2017 May 3, 2017 Annual general meeting May 3, 2017

Argonstraße 7 Fax +49 821 5584-1135 [email protected]