WashTec AG — Investor Presentation 2023

Jun 15, 2023

Warburg Highlights, Hamburg

Andreas Pabst | CFO

Juni 2023

2 | Warburg Highlights | Juni 2023 | WashTec AG

Car wash as a resilient & sustainable business model

WashTec is the leading supplier of innovative vehicle wash solutions worldwide. The product range includes all types of vehicle washing systems as well as associated peripheral equipment, washing chemicals and water recovery systems. As specialists in environmentally friendly car wash, we are continuously working on innovations as a contribution to a sustainable mobility today and tomorrow.

In addition, WashTec offers comprehensive service packages and digital smart service solutions over the entire life cycle of the products - these include maintenance, chemical supply, equipment take-back, as well as services for arranging financing or operator management of equipment. The main revenue drivers are the product areas of machinery, service and chemicals.

Our Mission: Sustainable Car Wash

Smart Machines

Clean Cars

Water Recycling

Green Chemicals

Digital Platform

WashTec's growth drivers: national income levels, need for sustainability and mobility

Regions ▪ National income levels drive automatic car wash business ▪ Number of washes per car and year Sustainability ▪ Conversion hand wash to automatic car wash ▪ Increasing demand car wash with water recycling Car Market Two developments in parallel: ▪ Increasing global car population 2 bn in 2050 ▪ Growth of car fleets, car sharing and emergence of transport as a service: Number of washes per car and week Global car population (in mil. vehicles) Car sharing

WashTec is world market leader with an installed base of 40,000 units

We are full rang provider of car wash products and solutions

WashTec has the biggest own service network in core markets

• Machines connected to service platform
• Full service contract with high uptimes of 98%+
• Call-out service
• Spare parts
• Digital solutions like EasyCarWash
• Awarded HSE organisation
• Management of sites

We serve global and local customers

Lean product and production footprint – True North 2023

Warburg Highlights | Juni 2023 | WashTec AG 10 |

Revenue share by product

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Recurring revenues** consumables, service (installed base and third party)

Equipment and Service 87.1%*

* percentage of Revenue product segments 2022 ** estimate recurring based on VDMA average 30% service

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Chemicals 11.8%*

1.1 %*

WashTec Corporate Philosophy

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New aspects and work in progress

+ Digital Transformation

Experienced Management Board with proven track record in various Disciplines and markets

Dr. Ralf Koeppe CEO / CTO

• Corporate Development
• Human Resources
• Research & Development
• Supply Chain
• Quality

Andreas Pabst CFO

• Finance / Accounting
• IT
• Purchasing
• Investor Relations
• WashTec Financial Services
• Legal
• Risk-Management / Compliance / Revision
• Insurance

Sebastian Kutz CSO

• Sales & Service
• Product Management and Marketing

We are committed to integrating sustainability into our business model

• 1. Comprehensive sustainability reporting in 2021 WashTec Sustainability Report 2021
• 1. ESG Company of the Year 2022 Awarded by Business School Augsburg

2022 at a glance - significant revenue growth with EBIT margin of 7.9% in a challenging economic environment

		Jan 1 to Dec 31,2022	Jan 1 to Dec 31,2022	Change
				absolute	in %
Revenue	€m	482.2	430.5	51.7	12.0
EBIT	€m	38.0	45.7	7.7	-16.8
EBIT margin	%	7.9	10.6	-2.7	-
EBT	€m	37.3	44.8	-7.5	-16.7
Consolidated net income	€m	26.4	31.1	-4.7	-15.1
Employees at reporting date	persons	1,824	1,782	42	2.4
Numbers of Shares	units	13,382,324	13,382,324	-	-
Earnings per Share	€	1.97	2.32	-0.35	-15.1
Free cash flow**	€m	16.2	42.3	-26.1	-61.7
Net cash outflow from investing activities	€m	-6.5	-3.4	-3.1	91.2
Equity ratio	%	31.0	36.9	-5.9	-
ROCE	%	20.2	25.8	-5.6	-

** Free cash flow including repayment of lease liabilities is €7.4m (prior year: €34.5m).

Figures in this report are rounded. Because of this, individual figures may not add up to the stated totals and percentages may not precisely correspond to the absolute figures they relate to.

• Revenue of €482.2m significantly higher than prior year (€430.5m), among other things due to price increases and exchange rate effects
• EBIT of €38.0m down on prior year (€45.7m), mainly due to rising material and material procurement costs; EBIT margin 7.9%
• Free cash flow of €16.2m down on prior year (€42.3m) due to decline in operating business and higher net operating working capital as a result of supply chain disruptions

2022 with new record revenue in € m

• Seasonality: WashTec normally shows low first quarter and high fourth quarter
• 2022: Revenue in each quarter higher than in the same quarter of the previous year
• Q4/22 best quarter ever
• Strong growth in North-America (2022 revenue first time > € 100m)

Revenue by product

Revenue by products

		2022	2021		Change
				absolute	in %
Equipment and service	in €m	420,0	373,2	46,8	12,5
Chemicals	in €m	56,9	51,0	5,9	11,6
Other	in €m	5,3	6,3	-1,0	-15,9
Total	in €m	482,2	430,5	51,7	12,0

• At €420.0m, Equipment and Service revenue was up on the prior-year figure of €373.2m. Growth was largest in key accounts.
• Direct sales and the chemicals business also grew. The increase in revenue is partly due to price increases and positive currency effects.
• Other revenue accounts for around 1.1% of the WashTec Group's total revenue.

Region key figures

Revenue by regions

in €m	2022	2021	Change (in%)
Europe	371.6	348.7	6.6
North America	107.7	77.5	39.0
Asia/Pacific	17.6	18.1	-2.8

• Europe: Revenue growth mainly in key accounts and positive chemical business
• North America: Revenue over USD 100m for the first time driven in particular by strong machinery business
• Asia/Pazific: Positive development in Australia burdened by declining sales in China, partly due to zero-covid policy

Region key figures

EBIT by regions

in €m	2022	2021	Change (in%)
Europe	36.4	40.2	-9.5
North America	1.4	4.6	-69.6
Asia/Pacific	0.4	1.2	-66.7

• EBIT in Europe decreased from €40.2m in the prior year to €36.4m, which is inside the revised July 2022 guidance range of EBIT between €34m and €38m
• Earnings in North America fell significantly by €3.2m to €1.4m (prior year: €4.6m). EBIT was also €0.5m down on adjusted EBIT* in the prior year
• Asia/Pacific: EBIT fell significantly to €0.4m (prior year: €1.2m) and was thus below expectations. In addition, EBIT was reduced by a negative effect of €0.2m from the measurement of assets and liabilities denominated in foreign currencies (prior year: positive effect of €0.6m)

Full-year EBIT significantly below prior year in €m

EBIT margin*

4.1% 13.1% 13.5% 10.2% 4.6% 7.0% 8.2% 10.7% 10.6% 7.9%

• Overall material price increases and productions inefficiencies due to disruption of supply chain gives pressure on margins in 2022
• 2022: quarterly increase of EBIT margin
• Q4/22 EBIT margin back on PY level

	2022	Guidance 2023
Revenue	482.2m€	at prior-year level +/-3%
EBIT	38.0m€	significant increase >= 10%
Free Cashflow	16.2m€	significant increase >= 10%
ROCE	20.2%	>= 1 percentage point

Q1 2023 at a glance – positive revenue and EBIT development

Q1
				Change
		Q1 2023	Q1 2022	absolute	in %
Revenue	€m	109.2	101.2	8.2	8.1
EBIT	€m	5.5	4.6	0.9	19.6
EBIT margin	%	5.0	4.6	0.4	-
EBT	€m	5.1	4.5	0.6	13.3
Net income	€m	3.5	2.3	1.2	52.2
Employees at reporting date	persons	1,785	1,788	-3	-0.2
Number of Shares	units	13,382,324	13,382,324	0	0.0
Earnings per Share	€m	0.26	0.17	0.09	52.2
Free cash flow	€m	1.9	-3.6	5.5	152.8
Net cash outflow from investing activities	€m	11.1	1.2	9.9	825.0
Equity ratio	%	31.2	36.0	-4.8	-

• Group revenue increased in all product segments WashTec generated revenue of €109.2m in the first three months of the year, a new record for a first quarter and a significant 8.1% increase on the prior year (€101.0m)
• Significant increase in Group EBIT EBIT, at €5.5m, 19.6% higher than prior year due to positive revenue performance and strict cost management (prior year: €4.6m); EBIT margin in traditionally weak first quarter: 5.0% (prior year: 4.6%)

▪ Positive free cash flow

Despite a high level of investment activity, notably including the acquisition of the site occupied by the US subsidiary, the Group generated a positive free cash flow of €1.9m (prior year: €−3.6m)

▪ Full year guidance for 2023 confirmed Revenue on a similar level to the prior year with a significant increase in EBIT

Revenue Q1 and EBIT Q1 in multi-year comparison in €m

In general, first quarter is the weakest for WashTec.

Q1/23 best first quarter for WashTec.

Revenue:

• +18% compared to pre-covid
• CAGR of 4.3% since 2019

EBIT:

• EBIT more than doubled compared to pre-covid
• CAGR of 20.6% since 2019

Revenue Q1 by region

Revenue by regions, Q1
in €m	Q1 2023	Q1 2022		Change
			absolute	in %
Europe	86.8	81.6	5.2	6.4
North America	21.5	18.3	3.2	17.5
Asia/Pacific	3.7	3.9	-0.2	-5.1
Consolidation	-2.9	-2.9	0	-
Total	109.2	101.0	8.2	8.1

▪ Europe stands for 79.5% (Q1/22 80.8%) of groups revenue; revenue increased by 6.4% in Q1/23 after 12.4% in Q1/22. Key account business clearly predominated here. Chemicals revenue also performed positively

• Revenue in North America was significantly higher than in the prior year, with an increase of 17.5% to €21.5m (prior year: €18.3m). Revenue share of North America is now at 19.7% (Q1/22: 18.1%)
• In the Asia/Pacific region, revenue in the first three months came to €3.7m – a decrease of €0.2m (prior year: €3.9m)

EBIT Q1 by region

EBIT by regions, Q1

in €m	Q1 2023	Q1 2022 Change
			absolute	in %
Europe	5.9	4.4	1.5	34.1
North America	-0.3	-0.3	0	0.0
Asia/Pacific	-0.2	0.4	-0.6	-150.0
Consolidation	0.1	0.1	0	-
Total	5.5	4.6	0.9	19.6

▪ EBIT in the Europe region increased by a significant 34.1% to €5.9m in the first quarter (prior year: €4.4m). EBIT - Margin is at 6.8% (Q1/22: 5.4%)

▪ EBIT in the North America region was at the same level as the prior year at €−0.3m (prior year: €−0.3m). In order to sustainably increase profitability, an efficiency program was launched in the first quarter and work has begun on its implementation. The Group expects a positive contribution from this in the current fiscal year

▪ Due to the decline in revenue in the first quarter, the Asia/Pacific region generated a small loss of €−0.2m (prior year: €0.4m)

Revenue Q1 by product

Revenue by product, Q1
in €m			Change
	Q1 2023	Q1 2022	absolute	in %
Equipment and service	91.1	83.9	7.2	8.6
Chemicals	16.7	15.6	1.1	7.1
Other	1.3	1.5	-0.2	-13.3
Total	109.2	101.0	8.2	8.1

Revenue increased compared to the prior-year quarter in all product segments due to:

• price increases implemented over the course of the last year and at the beginning of this year
• increased number of machines sold
• Good chemical business, especially in Europa and Australia

1 Update on WashTec 5 Financials: long term*

*Rounding differences may occure

31 | Warburg Highlights | Juni 2023 | WashTec AG

Overview 2013 - 2022 in €m

Revenue	€m	299.7	302.6	340.9	372.8	425.0	435.4	436.5	378.7	430.5	482.2
EBIT	€m	17.1	18.4	36.4	44.1	52.2	51.5	36.3	20.1	45.7	38.0
EBIT margin	in %	5.7	6.1	10.7	11.8	12.3	11.8	8.3	5.3	10.6	7.9
EBT	€m	15.8	17.7	35.9	43.6	51.6	50.8	35.7	18.8	44.8	37.3
Net income	€m	11.2	12.7	24.6	30.6	36.9	34.0	22.3	13.3	31.1	26.4
Earnings per Share	€m	0.80	0.91	1.78	2.29	2.76	2.54	1.66	0.99	2.32	1.97
Dividend per Share	€m	0.64	1.65	1.70	2.10	2.45	2.45	−	2.30	2.90	2.20
Free cash flow	€m	15.7	25.1	26.2	20.8	28.1	32.3	15.0	45.6	42.3	16.2
Balance sheet total	€m	174.2	185.8	190.0	218.1	233.9	237.2	274.9	244.0	267.0	284.5
Equity	€m	87.8	90.9	80.3	87.4	94.2	95.4	84.5	96.2	98.4	88.1
Employees	people	1,670	1,676	1,672	1,741	1,793	1,852	1,880	1,798	1,767	1,806

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

| Warburg Highlights | Juni 2023 | WashTec AG

Financial Calendar 2023

Date	Event
June 21, 2023	Sustainability report Press conference
August 3, 2023	Half-yearly financial statement
November 2, 2023	Q3 Statement

Event Calendar 2023

Date	Event
November 27.-29., 2023	Equity Forum, Frankfurt

Disclaimer

Cautionary note with regard to forward-looking statements: This document contains forward-looking statements and statements of future expectations that reflect management's current views and assumptions with respect to future events. Such statements are subject to known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied and that are beyond WashTec AG's ability to control or estimate precisely. In addition to statements which are forward-looking by reason of context, the words 'may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue' and similar expressions identify forward-looking statements. Actual results, performance or events may differ materially from those statements due to, without limitation, (i) general economic conditions, (ii) future performance of financial markets, (iii) interest rate levels (iv) currency exchange rates (v) the behaviour of other market participants (vi) general competitive factors (vii) changes in laws and regulations (viii) changes in the policies of central banks, governmental regulators and/or (foreign) governments (ix) the ability to successfully integrate acquired and merged businesses and achieve anticipated synergies (x) reorganization measures, in each case on a local, national, regional and/or global basis. WashTec AG does not assume any obligation and does not intend to update any forward-looking statements to reflect events or circumstances after the date of these materials.

No obligation to update information: Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. WashTec AG does not assume any obligation and does not intend to update any information contained herein.

No investment advice: This presentation is for information only and shall not constitute investment advice. It is not intended for solicitation purposes but only for use as general information. All descriptions, examples and calculations contained in this presentation are for illustrative purposes only.