WashTec AG — Interim / Quarterly Report 2020

Oct 27, 2020

Financial Statement Q3 | October 27, 2020

Dr. Ralf Koeppe | CEO Dr. Kerstin Reden | CFO

Car wash data from January to September 2020

WashTecs' SmartCare – the first digital carwash machine

Remote connectivity and diagnostics

Individual control of all settings: pricing, chemical dosing or washing programs

Wash program configuration simple and perfectly adaptable to the wash business.

Intelligent control: For maximum wash quality, speed and revenue

Customizable

WashTecs' SmartSite – remote mangement of wash sites

Ongoing structure optimization driven by WashTecs' Performance Program

• Headcount reduction from 1874 (end of year 2019) to 1767 (end of Q3 2020)
• Engineering Excellence initiatives intensified starting Q4

Year-to-date September 2020 – Financial Highlights

Revenue

€ 269.3 m down 13%

EBIT

€ 12.5 m down 38 %

FCF € 25.1 m up > 100 %

Outlook FY 2020

• Maintained in view of the continuing fragile economic environment
• Revenue decline between 15% and 20%
• EBIT margin of 3-5%
• A second global lockdown is not taken into account

Results significantly impacted by COVID-19 pandemic

Successfully managed turnaround in NA and Asia/Pacific

Third quarter again impacted by COVID-19 crisis, but to a lesser extent than Q2 in € million

Currency fluctuations result in a 1.1% headwind for the third quarter Year-to-date FX impact was minor

Quarterly view Year-to-date revenue development

Year-to-date (September)

Revenue shortfall due to lower machine sales; Chemical business stable

Quarterly view (Q3)

COVID-19 still impacts machines sales; Chemicals flat

Year-to-date (September) – unconsolidated basis

Europe business impacted the most by COVID-19 pandemic, in particular France, Spain, Austria, the Nordics as well as export business to Eastern Europe

Revenue by Segment

Quarterly view (Q3)

Europe continues to be impacted by pandemic, but to a lesser extent than in Q2. US business in Q3 hit by lower machine sales to Key Accounts

Revenue by Segment

Year-to-date income statement September 2020

	9m 2019	9m 2020	Λ
Group revenue	309.1	269.3	$-12.9%$
Cost of materials	$-133.9$	$-116.0$	$-13.4%$
in %	43.3%	$-43.1%$
Operating expenses (excl. FX)	$-157.9$	$-142.3$	-9.9%
Other income / expenses	3.0	1.5	$-50.0%$
EBIT	20.3	12.5	$-38.4%$
EBIT margin	6.6%	4.6%	$-2.0\%$
Financial result	$-0.4$	$-0.6$	50.0%
Tax	$-8.3$	$-4.5$	$-45.8%$
Net income	11.6	7.4	$-36.1%$
EPS	0.87	0.55	$-36.8%$

Solid EBIT performance in Q3 with an EBIT margin of 7.8%

in € million

In % of revenue: 1.9% 4.0% 7.8 %

In % of revenue: 6.6% 4.6%

Year-to-date (September) – unconsolidated basis

EBIT by region - turnaround in NA and APAC partly offsets shortfall in Europe

Quarterly view (Q3) – unconsolidated basis

EBIT improvement vs. Q2 in all three regions

Year-to-date (September)

Compared to PY, Group cash position improved due to lower trade receivables, less Capex expenditure and suspension of dividend

	9m 2019	9m 2020
Gross cashflow	18.4	14.8	$-19.6%$
Change in working capital	$-12.8$	6.6	>100%
Change of other current assets/liabilities	0.0	6.3	>100%
Cashflow from operating activities	5.6	27.7	>100%
Cashflow from investing activities	$-6.1$	$-2.6$	-57.4%
FCF	$-0.5$	25.1	>100%
Cashflow from financing activities	$-39.8$	$-6.6$	>100 %
Change of cash position (incl. FX)	$-40.9$	17.7	>100%
	Dec-19	9m 2020	Δ
Cash and cash equivalent	12.4	15.4	3.0
Bank liabilities	$-47.1$	$-32.4$	14.7
	$-34.7$	$-17.0$	17.7

Reduction of NOWC due to lower revenue levels, equity ratio up

Outlook 2020

In view of the limited visibility and the current resurgence of the COVID-19 pandemic, we maintain our outlook statement for the full year 2020 in line with the half year report.

WashTec expects revenue to decline by 15 – 20% compared to PY and an EBIT margin between 3 - 5%. Current expectation is a decrease towards the lower end of the percentage range.

October 27, 2020	Publication of Q3 Statement
November 16-18, 2020	Eigenkapital Forum Online