WashTec AG — Interim / Quarterly Report 2017

May 3, 2017

Report on the Period January 1 to March 31, 2017

Unaudited translation for convenience purposes only

q12017

Successful start to 2017: Further substantial first-quarter growth after strong Q4 2016

• Revenue increased by 31.8% to €101.2m (prior year: €76.8m); EBIT at €12.1m (prior year: €3.7m)
• All products contributed to the growth
• Dividend of €2.10 per share proposed at Annual General Meeting
• Guidance 2017: Full-year sales growth of at least 10% and to at least €410m, with EBIT margin in excess of 12%

Rounding differences may occur		Jan 1 to	Jan 1 to	Change	Change
		Mar 31, 2017	Mar 31, 2016	absolute	in %
Revenues	€ m	101.2	76.8	24.4	31.8
EBITDA	€ m	14.5	6.0	8.5	141.7
EBIT	€ m	12.1	3.7	8.4	227.0
EBIT margin	in %	12.0	4.9	7.1	–
EBT	€ m	12.0	3.6	8.4	233.3
Employees per reporting date	FTE	1,768	1,710	58	3.4
Average number of shares	shares	13,382,324	13,382,324	0	0
Earnings per share1	€	0.64	0.19	0.45	236.8
Free cash flow2	€ m	10.8	7.6	3.2	42.1
Investments in fixed assets
(capital expenditures)	€ m	3.0	3.0	0.0	0
Equity ratio per reporting date3	in %	42.7	43.2	–0.5	–

¹ Diluted = undiluted

² Net cash flow – cash outflow from investing activity

³ Equity/total equity and liabilities

Content

Interim Group Management Report for the period January 1 to March 31, 2017

1.	Overall revenue and earnings development in the quarter .	5
2.	Report on economic position .	5
2.1	Economic and competitive environment .	5
2.2	Dividend payment .	5
2.3	Earnings .	5
2.4	Net assets .	8
2.5	Financial position .	8
2.6	Employees .	9
3.	Outlook, opportunities and risk report .	9
3.1	Outlook	9
3.2	Opportunities and risks for group development .	9
4.	Miscellaneous information .	10
4.1	Related party disclosures .	10
4.2	Events after the reporting period .	10
5.	WashTec shares and investor relations .	10
5.1	Share price performance .	10
5.2	Shareholder structure .	10
5.3	Annual General Meeting on May 3, 2017 .	10

Interim Condensed Consolidated Financial Statements for the period January 1 to March 31, 2017

Consolidated Income Statement	12
Statement of Comprehensive Income	13
Consolidated Balance Sheet	14
Consolidated Cash Flow Statement	15
Statement of Changes in Consolidated Equity	16
Notes to the Interim Condensed Consolidated
Financial Statements of WashTec AG (IFRS) for
the Period January 1 to March 31, 2017	18

Contact .	25
Financial Calendar .	25

Interim Group Management Report (unaudited)

1. Overall revenue and earnings development in the quarter

WashTec looks back on a strong first quarter. Revenue through to March 2017, at €101.2m (prior year: €76.8m), was 31.8% higher than in the weak first quarter of 2016. This growth was notably driven by Equipment and Service, while revenue performance in Chemicals was likewise very positive. Major customers contributed substantially to the revenue growth. Adjusted for exchange rate effects, revenue increased by 30.6% in the first quarter. As a result of the revenue growth, EBIT improved significantly to €12.1m (prior year: €3.7m). With the order backlog substantially larger at the end of the first quarter than a year earlier, the Company expects a strong second quarter. Revenue growth of 31.8%

On March 22, 2017, on publication of the Annual Report for fiscal year 2016, the annual press conference was held at the Augsburg head office along with a conference call. The Management Board presented the annual results 2016 to representatives of the local press, banks, investors and analysts.

WashTec exhibited at trade fairs in Austria, China and Spain. In Beijing, a fully equipped premium rollover was shown in live operation for the first time and sold. In North America, the first premium tunnel out of the European product line was sold and presented at the ICA in Las Vegas at the beginning of April.

After the sustained positive trend in order intake during the first quarter and the resulting large order backlog at the end of the first quarter, the Company is now aiming for double-digit revenue growth to at least €410m for the year as a whole, with an EBIT margin in excess of 12%. The strong growth relative to 2016 in the first half of the year is likely to slow down in the second half given the strong growth seen in the corresponding prior-year quarters.

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 2016. There were no significant changes in technology and none are foreseeable.

2.2 Dividend payment

The Management Board and Supervisory Board are proposing a dividend of €2.10 per eligible share for this year's Annual General Meeting on May 3, 2017. This corresponds to a dividend ratio for shareholders of some 92% of net income. 58.9% of the distribution is expected to be made out of the tax contribution account. Based on a share price of €56.90 on March 31, 2017, the dividend yield is 3.7%.

2.3 Earnings

2.3.1 Revenue by segments and products

Revenues by segment, Q1
in € m, IFRS	Jan 1 to	Jan 1 to	Change	Change
(Rounding differences may occur)	Mar 31, 2017	Mar 31, 2016	absolute	in %
Europe	78.4	62.3	16.1	25.8
North America	21.9	12.0	9.9	82.5
Asia/Pacific	3.2	4.6	–1.4	–30.4
Consolidation	–2.3	–2.1	–0.2	–9.5
Group	101.2	76.8	24.4	31.8

Revenue growth in Europe and North America

Revenue performance in the first quarter was driven by the sustained positive trend in Europe (with an increase of 25.8% or €16.1m) and strong revenue growth in North America (increase of 82.5% or €9.9m). The increase in North America relates to business with major customers. Revenue in the Asia/Pacific region decreased by 30.4% compared with the prior-year quarter. The decrease came in Australia due to less order intakes in the last few months. Revenue in China was higher than in the prior year and will also sustain a positive trend in the months ahead. The forecast for Asia/Pacific is reviewed at the middle of the year.

In US dollars, revenue in North America was USD 23.4m (prior year: USD 13.2m).

Group revenue increased by 31.8% in the first quarter (Q1 2017: €101.2m; Q1 2016: €76.8m).

Revenues by product, Q1
in € m, IFRS	Jan 1 to	Jan 1 to	Change	Change
(Rounding differences may occur)	Mar 31, 2017	Mar 31, 2016	absolute	in %
Equipment and service	85.0	63.9	21.1	33.0
Chemicals	12.6	9.8	2.8	28.6
Operations business and others	3.6	3.1	0.5	16.1
Total	101.2	76.8	24.4	31.8

Equipment and Service revenue went up by 33.0% from €63.9m to €85.0m. Chemicals revenue increased by 28.6% to €12.6m.

2.3.2 Expense items and earnings

Earnings, Q1
in € m, IFRS	Jan 1 to	Jan 1 to	Change	Change
(Rounding differences may occur)	Mar 31, 2017	Mar 31, 2016	absolute	in %
Gross profit 1	58.6	45.9	12.7	27.7
EBITDA	14.5	6.0	8.5	141.7
EBIT	12.1	3.7	8.4	227.0
EBIT margin %	12.0	4.9	7.1	–
EBT	12.0	3.6	8.4	233.3

* Revenues plus change in inventory minus cost of materials

High EBIT margin of 12% in Q1

The gross profit margin decreased due to the changed product and customer mix, to 57.9% compared with 59.7% in the prior year.

Personnel expenses went up compared with the prior-year quarter by €3.2m to €32.1m (prior year: €29.0) as a result of the larger workforce and wage increases. The Group had 58 more employees at the end of March than a year earlier. This reflects the positive development of the business and investment in further organic growth. A smaller increase in the workforce is planned for remainder of this year. The size of the workforce has held constant for the last four months.

Other operating expenses (including other taxes) increased by €2.2m to €14.0m (prior year: €11.8m).

The increase in other operating expenses notably reflected higher costs of contract workers due to higher capacity utilization. Costs in the first quarter were also higher due to participation in a number of local trade fairs and travel expenses. Currency gains and losses did not have a material net impact on Group earnings or the prior-year comparative figures.

EBITDA increased by €8.5m to €14.5m (prior year: €6.0m).

EBIT by segment, Q1
in € m, IFRS	Jan 1 to	Jan 1 to	Change	Change
(Rounding differences may occur)	Mar 31, 2017	Mar 31, 2016	absolute	in %
Europe	10.3	3.1	7.2	232.3
North America	2.2	–0.2	2.4	N/A
Asia/Pacific	–0.2	0.7	–0.9	N/A
Consolidation	–0.2	0.1	–0.3	N/A
Group	12.1	3.7	8.4	227.0

EBIT increased by €8.4m to €12.1m (prior year: €3.7m).

EBIT, Q1, in € m, IFRS

The EBIT increase in Europe and North America is mainly a result of the revenue growth. In the Asia/Pacific segment, the decrease in revenue and higher trade fair expenditure resulted in a lower EBIT. 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 €–0.1m impact on earnings (prior year: €–0.1m).

Consolidated net income increased to €8.6m (prior year: €2.6m). The lower tax rate is primarily due to the use of tax loss carryforwards for which no deferred taxes were recognized.

Earnings per share (basic = diluted) increased to €0.64 (prior year: €0.19) due to the higher consolidated net income.

2.4 Net assets

Sustained strong balance
sheet structure

Balance sheet, assets, in € m, IFRS	Mar 31,	Dec 31,
(Rounding differences may occur)	2017	2016
Non-current assets	102.0	97.1
thereof intangible assets	7.3	6.7
thereof deferred tax assets	3.9	3.8
Current assets	122.7	121.0
thereof inventories	49.3	42.9
thereof trade receivables, other assets	51.0	60.4
thereof cash and cash equivalents	9.3	6.8
Balance sheet total	224.7	218.1

Balance sheet, equity and liabilities, in € m, IFRS	Mar 31,	Dec 31,
(Rounding differences may occur)	2017	2016
Equity	95.9	87.4
Liabilities to banks	0.5	8.3
Other liabilities and provisions	114.8	109.2
thereof trade payables	18.7	11.8
thereof provisions (including tax provisions)	32.0	39.8
Deferred income	10.7	10.1
Deferred tax liabilities	2.8	3.1
Balance sheet total	224.7	218.1

Net working capital (current trade receivables + inventories – current trade payables) decreased, mainly due to higher trade receivables, from €91.5m as of December 31, 2016 to €81.6m.

Equity increased due to the positive net income to €95.9m as of March 31, 2017 (December 31, 2016: €87.4m). Compared with the 2016 year-end, the equity ratio went up from 40.1% to 42.7%.

With agreement of the banks, the covenant figure for the equity ratio has been reduced from at least 35% to at least 27.5% through to the end of the current bank agreement.

Net liquidity (cash and cash equivalents – non-current and current liabilities to banks) stood at €8.8m as of the end of the first quarter of 2017 (December 31, 2016: net debt of €1.5m).

Net financial liquidity (current and non-current finance leases + net liquidity) improved to €6.1m (December 31, 2016: net financial debt of €4.5m).

Other liabilities and provisions increased, mainly due to higher trade payables and prepayments received, to €114.8m (December 31, 2016: €109.2m).

2.5 Financial position

The cash inflow from operating activities (net cash flow) increased in the first quarter, despite large tax payments for past years, to €13.7m (prior year: €10.6m).

The cash outflow from investing activities showed virtually no change compared with the prior year, at €2.9m (prior year: €3.0m). The Company plans lower capital expenditure for the current fiscal year than in the prior year.

Free cash flow (net cash flow – cash outflow from investing activities) increased by 42.1% to €10.8m (prior year: €7.6m).

Overall, cash and cash equivalents increased relative to December 31, 2016 by €10.3m to €8.8m.

2.6 Employees

Number of employees near-constant for last four months

The number of employees as of March 31, 2017 was 1,768, nearconstant relative to the 2016 year-end (December 31, 2016: 1,767). A net total of 58 employees have been added since March 31, 2016.

3. Outlook, opportunities and risk report

3.1 Outlook

Projects to boost sales activities and operational improvements continue as planned.

Following the end of the first quarter, the Company is targeting double-digit revenue growth to at least €410m in 2017, with an EBIT margin in excess of 12%.

The expectations analog to the forecast of the Annual Report for segmental performance are as follows:

• Europe: significant increase in revenues and earnings
• North America: significant increase in revenues and earnings
• Asia/Pacific: significant increase in revenues and earnings

The above forecast for Asia/Pacific from the Annual Report 2016 is currently being reviewed and will be adjusted if necessary at the end of the first half of the year. This has no effect on the forecasts for the Group as a whole.

The outlook is subject to uncertainties.

The outlook for the remaining specified key performance indicators given in the Annual Report 2016 likewise continues to apply.

3.2 Opportunities and risks for group development

The WashTec Group's risk management system is described in the Annual Report 2016. There have been no material changes in the risks described therein. The Company sees an increased risk of systematic IT fraud in the meantime.

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 first quarter. As part of the Company's investor relations activities, Management held road shows in Frankfurt, Sydney, Melbourne, London and Baden-Baden.

5.1 Share price performance

Ongoing strong price performance of WashTec shares

The WashTec share price was €56.90 on March 31, 2017. That marks a 14.95% increase on the prior year-end closing price of €49.50 on December 30, 2016. WashTec shares thus performed better than the SDAX, which gained only 6.0% since the beginning of the year.

WashTec AG is currently covered by Hauck & Aufhäuser, HSBC Trinkaus & Burkhardt, MM Warburg and Bankhaus Lampe. The price target given by all analysts is at least €50.00 and ranges up to €64.00 (as of March 2017).

5.2 Shareholder structure

WashTec AG did not receive any voting rights notifications under the Securities Trading Act (Wertpapierhandelsgesetz) in the first quarter of 2017.

Shareholding in %	Mar 31, 2017
EQMC Europe Development Capital Fund plc	9.78
Kempen Oranje Participaties N.V.	9.60
Dr. Kurt Schwarz1	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
Treasury shares	4.25
Diversity Industrie Holding AG	4.00
Free float	42.00
1 Leifina GmbH & Co. KG et al
Based on notifications made pursuant to the Securities Trading Act (WpHG)

Manager Transactions

No manager transactions were reported in the first quarter.

5.3 Annual General Meeting on May 3, 2017

The Annual General Meeting of WashTec AG takes place in Augsburg on May 3, 2017. The venue this year is once again the Chamber of Industry and Commerce (IHK) for Augsburg and Swabia. The term of office of the current Supervisory Board members Jens Große-Allermann, Dr. Sören Hein, Dr. Hans Liebler and Roland Lacher is due to end at the close of the Annual General Meeting. Jens Große-Allermann, Dr. Sören Hein and Dr. Hans Liebler are available for reelection. Mr. Lacher is not available for reelection for reasons of age. In Mr. Lacher's place, the Supervisory Board is nominating Dr. Alexander Selent, longstanding CFO and deputy CEO of FUCHS PETROLUB SE, for election to the Supervisory Board.

Consolidated Income Statement

in €	Jan 1 to	Jan 1 to
	Mar 31, 2017	Mar 31, 2016
Revenues	101,216,291	76,821,505
Other operating income	1,075,220	821,859
Capitalized development costs	987,352	100,243
Change in inventory	2,433,254	468,837
Total	105,712,117	78,212,444
Cost of materials
Cost of raw materials, consumables and supplies and of purchased material	35,853,385	25,461,674
Cost of purchased services	9,234,244	5,959,461
	45,087,628	31,421,135
Personnel expenses	32,136,436	28,984,103
Amortization, depreciation and impairment of tangible and intangible assets	2,387,550	2,229,903
Other operating expenses	13,793,648	11,611,566
Other taxes	197,764	218,368
Total operating expenses	93,603,026	74,465,075
EBIT	12,109,091	3,747,369
Financial income	7,227	6,367
Financial expenses	106,635	114,685
Financial result	–99,408	–108,318
EBT	12,009,683	3,639,051
Income taxes	–3,436,305	–1,083,658
Consolidated net income	8,573,377	2,555,393
Weighted average number of outstanding shares	13,382,324	13,382,324
Earnings per share (basic = diluted)	0.64	0.19

Statement of Comprehensive Income

Jan 1 to	Jan 1 to
Mar 31, 2017	Mar 31, 2016
8,573	2,555
0	0
0	0
0	0
–79	–744
–7	203
16	49
70	–492
70	–492
8,503	2,063

Consolidated Balance Sheet

The Notes to the Consoli
dated Financial Statements
are an integral part of the
Consolidated Financial
Statements. Rounding
differences may occur.

Assets	Mar 31,	Dec 31,
in €	2017	2016
Non-current assets
Property, plant and equipment	40,629,100	40,772,810
Goodwill	42,312,738	42,312,405
Intangible assets	7,348,250	6,665,561
Trade receivables	7,296,099	2,925,741
Other assets	553,899	612,213
Deferred tax assets	3,891,177	3,791,039
Total non-current assets	102,031,263	97,079,769
Current assets
Inventories	49,337,187	42,877,111
Trade receivables	50,969,938	60,426,766
Tax receivables	8,164,703	7,562,144
Other assets	4,933,831	3,271,084
Cash and cash equivalents	9,299,699	6,837,138
Total current assets		122,705,360 120,974,243
Total assets		224,736,623 218,054,012

Equity and Liabilities	Mar 31,	Dec 31,
in €	2017	2016
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 currency translation effects	–3,619,495	–3,549,745
Profit carried forward	27,675,795	–2,906,058
Consolidated net income	8,573,377	30,581,853
	95,916,330	87,412,703
Non-current liabilities
Finance lease liabilities	1,640,712	1,871,337
Provisions for pensions	10,506,675	10,490,701
Trade payables	9,031	5,151
Other non-current provisions	3,134,905	3,564,312
Other non-current liabilities	2,783,346	2,470,584
Deferred income	1,540,420	1,473,454
Deferred tax liabilities	2,815,783	3,061,843
Total non-current liabilities	22,430,871	22,937,384
Current liabilities
Interest-bearing loans	488,880	8,341,500
Finance lease liabilities	1,047,812	1,172,583
Prepayments on orders	12,150,043	7,186,588
Trade payables	18,691,135	11,773,401
Taxes and levies	7,027,479	6,195,712
Liabilities for social security	1,329,279	1,107,937
Tax provisions	6,621,082	12,368,913
Other current liabilities	38,157,033	39,224,315
Other current provisions	11,714,861	11,731,370
Deferred income	9,161,819	8,601,606
Total current liabilities		106,389,422 107,703,925
Total equity and liabilities		224,736,623 218,054,012

Consolidated Cash Flow Statement

The Notes to the Consoli
dated Financial Statements
are an integral part of the
Consolidated Financial
Statements. Rounding
differences may occur.

in €k	Jan 1 to Mar 31,	Jan 1 to March
	2017	31, 2016
EBT	12,010	3,639
Adjustments to reconcile EBT to net cash flows from operating activities:
Amortization, depreciation and impairment of tangible and intangible assets	2,388	2,230
Gain/loss from disposals of non-current assets	–28	4
Other gains/losses	–189	–1,020
Financial income	–7	–6
Financial expenses	107	115
Movements in provisions	–431	–378
Changes in net working capital:
Increase/decrease in trade receivables	4,952	2,622
Increase/decrease in inventories	–6,446	–2,376
Increase/decrease in trade payables	6,940	3,412
Changes in other net working capital	6,186	2,097
Income tax paid	–11,766	279
Net cash flows from operating activities	13,713	10,617
Purchase of property, plant and equipment (excluding finance leases)	–3,000	–3,029
Proceeds from sale of property, plant and equipment	94	56
Net cash flows from investing activities	–2,906	–2,973
Interest received	7	6
Interest paid	–89	–97
Repayment of finance lease liabilities	–355	–447
Net cash flows from financing activities	–438	–538
Net increase/decrease in cash and cash equivalents	10,369	7,105
Net foreign exchange difference	–54	–6
Cash and cash equivalents at January 1	–1,504	2,512
Cash and cash equivalents at March 31	8,811	9,611
Composition of cash and cash equivalents for cash flow purposes:
Cash and cash equivalents	9,300	9,869
Interest-bearing loans	–489	–258
Cash and cash equivalents at March 31	8,811	9,611

Statement of Changes in Consolidated Equity

The Notes to the Consolidated Financial Statements are an integral part of the Consolidated Financial Statements. Rounding differences may occur.

in €k	Number	Subscribed	Capital	Treasury	Other reserves	Profit	Total
	of shares	capital	reserves	shares	and currency	carried
	(in units)				translation	forward
					effects
As of January 1, 2017	13,382,324	40,000	36,464	–13,177	–3,550	27,677	87,413
Income and expenses recognized directly in equity					–86		–86
Taxes on transactions recognized directly in equity					16		16
Consolidated net income						8,573	8,573
As of March 31, 2017	13,382,324	40,000	36,464	–13,177	–3,619	36,250	95,916
As of January 1, 2016	13,382,324	40,000	36,464	–13,177	–2,862	19,845	80,268
Income and expenses recognized directly in equity					–541		–541
Taxes on transactions recognized directly in equity					49		49
Consolidated net income						2,555	2,555
As of March 31, 2016	13,382,324	40,000	36,464	–13,177	–3,354	22,400	82,332

Notes to the Interim Condensed Consolidated Financial Statements of WashTec AG (IFRS) for the period January 1 to March 31, 2017

General Disclosures

1. General information on the Group

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, 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 interim condensed consolidated financial statements and the interim Group management report are available on our website, www.washtec.de.

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, 2016, 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 March 31, 2017 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, 2016.

The interim condensed 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. The fiscal year is the calendar year.

Effects of new financial reporting standards

The Group adopted no new or revised IFRS Standards or Interpretations in the reporting period.

The IASB and the IFRS Interpretations Committee have issued additional standards, interpretations and amendments as listed below, but these do not yet have to be adopted in fiscal year 2017 or have not yet been endorsed by the European Union.

As of March 31, 2017, the WashTec Group had not adopted 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
IFRS 15	Revenue from Contracts with Customers	Jan 01, 2018	Oct 29, 2016	IFRS 15 replaces all existing revenue recognition standards – notably IAS 18 Revenue and IAS 11 Construction Contracts. The new standard is based on the principle that revenue is recognized when control of goods or services is transferred to a customer. It is to be applied either fully retrospectively or on a modified retrospective basis. It is not yet possible to assess the impacts of the new standard on the WashTec Group. Information on its impacts will be provided by WashTec in the next nine months.
IFRS 9	Financial Instruments	Jan 01, 2018	Nov 29, 2016	IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities while introducing new rules for hedge accounting and a new im pairment model. Additional designation options are provided for hedge accounting. The new standard also simplifies effec tiveness testing and requires additional notes disclosures. It is not yet possible to assess the impacts of the new standard on the WashTec Group. Information on its impacts will be provided by WashTec in the next nine months.
IAS 7	Amendments to IAS 7 Statement of Cash Flows – Disclosure Initiative	Jan 01, 2017	expected in Q2 2017	Presentation of a reconciliation of liabilities from financing activities; disclosure of restrictions on cash.
IAS 12	Amendments to IAS 12 Income Taxes – Recognition of Deferred Tax Assets for Unrealised Losses	Jan 01, 2017	expected in Q2 2017	none
IFRS 15	Clarifications of Revenue from Contracts with Customers	Jan 01, 2018	expected in Q2 2017	none
IAS 40	Amendments to IAS 40 Investment Property – Transfers of Investment Property	Jan 01, 2018	expected in Q3 2017	none

Standards or amendments to existing standards not yet applied

Standard/ Interpretation	Title	Mandatory application	Endorsement by the EU	Material effects on WashTec
IFRS 2	Amendments to IFRS 2 Share-based payments – Classification and Mea surement of Share-based Payment Transactions	Jan 01, 2018	expected in Q3 2017	none
IFRS	Annual Improvements to IFRS (2014-2016)	Amendments to IFRS 12: Jan 01, 2017; Amendments to IFRS 1 and IAS 28: Jan 01, 2018	expected in Q3 2017	none
IFRIC 22	Foreign Currency Transactions and Advance Consideration	Jan 01, 2018	expected in Q3 2017	none
IFRS 4	Amendments to IFRS 4: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts	Jan 01, 2018	expected in Q3 2017	none
IFRS 16	Leases	Jan 01, 2019	expected in Q4 2017	IFRS 16 eliminates the distinction between finance and operating leases for lessees and requires them to recognize all leases as a right-of-use asset and a lease liability. Excep tions are made for short-term leases and leases for low-value assets. The new standard mainly affects the accounting treatment of operating leases. It is not yet possible to assess the impacts with regard to the recognition of right-of-use assets and lease liabilities and the impacts on earnings and cash flows. Existing leases would also be covered by the ex ceptions or cease to be classified as leases for the purposes of IFRS 16.
IFRS 10 and IAS 28	Amendments to IFRS 10 Consoli dated Financial Statements and IAS 28 Investment in Associates and Joint Ventures – Sale or Con tribution of Assets between an In vestor 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

3. Segment reporting

Segmentation using the management approach at the WashTec Group is by sales territories. The sales territories are defined as the regions Europe, North America and Asia/Pacific. Following organizational changes in the prior year in which the Eastern Europe segment and export were brought under common management, WashTec no longer reports separately on the Eastern Europe segment. In fiscal year 2016, Eastern Europe was included for reporting purposes in the Europe segment. The Core Europe segment was renamed the Europe segment as of the year-end 2016. The structure of the North America and Asia/ Pacific segments is unchanged.

Jan to Mar 2017	Europe	North	Asia/	Consoli	Group
in €k		America	Pacific	dation
Revenues	78,396	21,918	3,239	–2,336	101,216
with third parties	76,094	21,883	3,239	0	101,216
with other divisions	2,301	35	0	–2,336	0
EBIT	10,323	2,225	–223	–215	12,109
Financial income					7
Financial expenses					–107
EBT					12,010
Income taxes					–3,436
Consolidated net income					8,573

Jan to Mar 2016	Europe	North	Asia/	Consoli	Group
in €k		America	Pacific	dation
Revenues	62,302	12,039	4,586	–2,106	76,822
with third parties	60,231	12,005	4,586	0	76,822
with other divisions	2,071	35	0	–2,106	0
EBIT	3,084	–202	742	124	3,747
Financial income					6
Financial expenses					–115
EBT					3,639
Income taxes					–1,084
Consolidated net income					2,555

4. Equity

The subscribed capital of WashTec AG as of March 31, 2017 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 March 31, 2017 is 13,382,324 (prior year: 13,382,324).

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.

in €k	IAS 39 Carrying Measurement under IAS 39					Measure	Fair Value	IFRS 13
	category	amount Mar 31, 2017	Amortized cost	Fair Value through equity	Fair Value through profit or loss	ment under IAS 17	Mar 31, 2017	Level
Assets
Cash and cash equivalents	LaR	9,300	9,300	–	–	–	9,300
Trade receivables	LaR	58,266	58,266	–	–	–	58,266
Other financial assets	LaR	1,616	1,616	–	–	–	1,616
Liabilities
Trade payables	FLAC	18,700	18,700	–	–	–	18,700
Interest-bearing loans	FLAC	489	489	–	–	–	489
Other financial liabilities	FLAC	21,948	21,948	–	–	–	21,948
Finance lease liabilities	n.a.	2,689	–	–	–	2,689	2,689
Derivative financial liabilities	FVthP/L	31	–	–	31	–	31	2
Aggregated presentation by IAS 39 category
Loans and receivables (LaR)		69,182	69,182	–	–
Financial liabilities measured at
amortized cost (FLAC)		41,137	41,137	–	–
Fair value through profit/loss (FVthP/L)		31	–	–	31

Carrying amounts, measurement and fair value by category:

in €k	IAS 39	Carrying	Measurement under IAS 39			Measure	Fair Value	IFRS 13
	category	amount Dec 31, 2016	Amortized cost	Fair Value through equity	Fair Value through profit or loss	ment under IAS 17	Dec 31, 2016	Level
Assets
Cash and cash equivalents	LaR	6,837	6,837	–	–	–	6,837
Trade receivables	LaR	63,353	63,353	–	–	–	63,353
Other financial assets	LaR	903	903	–	–	–	903
Liabilities
Trade payables	FLAC	11,779	11,779	–	–	–	11,779
Interest-bearing loans	FLAC	8,342	8,342	–	–	–	8,342
Other financial liabilities	FLAC	20,734	20,734	–	–	–	20,734
Finance lease liabilities	n.a.	3,044	–	–	–	3,044	3,044
Derivative financial liabilities	FVthP/L	55	–	–	55	–	55	2
Aggregated presentation by IAS 39 category
Loans and receivables (LaR)		71,093	71,093	–	–
Financial liabilities measured at
amortized cost (FLAC)		40,854	40,854	–	–
Fair value through profit/loss (FVthP/L)		55	–	–	55

Due to their short terms, the fair values of trade receivables, trade payables and cash and cash equivalents as well as 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.

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

in €k		Mar 31, 2017 Dec 31, 2016
Current	31	55
Total	31	55

6. Contingent liabilities and other financial obligations

There was no material change in contingent liabilities and other financial obligations relative to December 31, 2016.

7. Related party disclosures

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

8. Events after the balance sheet date

There were no significant events after the balance sheet date.

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

July 28, 2017 Q2 Report 2017 Sep 19–21, 2017 Baader Bank Investment Conference, Munich Oct 27, 2017 Q3 Report 2017 Nov 27–29, 2017 Equity Capital Forum, Frankfurt

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