WashTec AG — Investor Presentation 2023

May 16, 2023

Equity Forum, Frankfurt

Andreas Pabst | CFO

Mai 2023

2 | Equity Forum | Mai 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

Our Mission: Sustainable Car Wash

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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

Equipment business market players

Equity Forum | Mai 2023 | WashTec AG

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

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Revenue share by regions

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

Chemicals 11.8%*

1.1 %*

Global car wash markets – basic data and market position

CAR WASH MARKET

1) UNECE, eurostat, etc. 2019 2) Market development, WT estimate	Europe	North America	Asia/Pacific	Others
cars1 Numbers of	337 Mio.	326 Mio.	469 Mio.*	195 Mio.
Installed base	>55,000	>50,000	~40,000	~2,500
Market growth²
Market stage	Volume markets demanding regarding quality and convenience	Volume markets more new sites/convenience – oriented	CN: >90% hand wash/ AUS, NZ see core Europe JP, KOR not contestible	(<1%)

*thereof 300 Mio. cars in China (2021) https://autonews.gasgoo.com/china\_n ews/70019540.html

CAR WASH MARKET POTENTIAL

3) Including Equipment, Service, Chemicals	Europe	North America	Asia/Pacific	Others	Global
Total potential (Mio. EUR)	1,380	1,710	1,010	300	4,450
Actual market (Mio. EUR)	980	1180	490	100	2,410
WashTec sales (Mio. EUR)	372	108	18	included in Europe	482*
WashTec market share	~35%	~10%	~4%	~5%	WashTec Target 2030: ~800mEUR

Source: WashTec market intelligence *consolidated number / base

Expected Revenue CAGR of 7% between 2022 and 2030; EBIT CAGR @ 13% in €m

*Assumption is no major macro-economic downturn

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

Green Car Care – Own tailored made Chemicals for advanced cleaning results and eco-friendliness

Sustainable along the entire value chain from the selection of raw materials to production and product use to waste prevention and recycling.

WashTec - economic sustainability Leadership in sustainable carwash

Measures energy crisis

Energy Saving Changing JetWash from warm to cold wash Enormously reduced energy consumption with consistent wash quality

Example: 2 space JetWash cite

One time invest 1200 € Yearly savings* 1.624 € (gas) / 2.072 € (heating oil)

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*based on energy prizing in August 2022

WashTec - economic sustainability Leadership in sustainable carwash

Measures drought

Water consumption of fresh water (in liters per wash)

without Water Treatment vs. with Water Treatment

Source: WashTec Market Intelligence

WashTec - economic sustainability Leadership in sustainable carwash

WashTec participated in the Twin Transformation Study by Ernst&Young and Fraunhofer FIT

EY Studie: Digital und nachhaltig die Zukunft sichern | EY - Deutschland

Data structure setup for data analytics Wash count analytics BI and AI in 2022

Recognizable effects?

A look into actual wash behaviour*

2022

2023

mywashtec.com is THE PLATFORM that gives our customers access to WashTec's digital offers.

mywashtec.com thus forms the bridge to the digital services ...

Gain efficiency insights thanks to smart, data-driven reports about your connected machines

Thanks to subscriptions, you can increase your wash business and profit regardless of the weather and increase customer loyalty.

Order conveniently and at lightning speed: around the clock access to all products and spare parts - on personal terms

Control your wash park for more convenience and more profit

myWashTec.com

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Year 2022 – Results and selected achievements

Multiple price increases to compensate material and labour price increases

delay effect in order backlog conversion Reliable delivery to our customers despite of intensified global supply chain and energy crisis

Slow commissioning and conversion to revenue due to customer delays in site preparation

< Continuous increase in customer loyalty and increasingly successful new customer acquisition Revenue € 482.2m EBIT 7.9% ROCE 20.2% FCF € 16.2m

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Year 2022 – Results and selected achievements

SmartCare extension to a scalable platform for key accounts and direct business

JetWash

update package from warm to cold water usage – contributions to energy saving

myWashTec as a digital documentation hub for partners

Data platform for structured data and analytics (AI pipe)

SmartCare – Next generation superior CarWash system now as a platform

First customer installation of SmartCare and AquaPur modular in the U.S.

PostCovid return: Fairs all over the word in 2022

UNITI expo in Stuttgart, May 2022

Example triple SmartCare installation, France

autopromtec 2022, Bologna,

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

	Jan 1 to	Jan 1 to	Change
			absolute	in %
€m	482.2	430.5	51.7	12.0
€m	38.0	45.7	7.7	-16.8
%	7.9	10.6	-2.7	-
€m	37.3	44.8	-7.5	-16.7
€m	26.4	31.1	-4.7	-15.1
persons	1,824	1,782	42	2.4
units	13,382,324	13,382,324	-	-
€	1.97	2.32	-0.35	-15.1
€m	16.2	42.3	-26.1	-61.7
€m	-6.5	-3.4	-3.1	91.2
%	31.0	36.9	-5.9	-
%	20.2	25.8	-5.6	-
		Dec 31,2022	Dec 31,2022

** 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 overUSD 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 zerocovid 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*

EBIT bridge: lower gross margin and higher selling expenses (esp. freight costs) lead to lower EBIT in €m

Free cash flow below prior year mainly due to increase in net operating working capital

In €m	2022	2021	Change
			absolute	in %
EBT	37.3	44.8	-7.5	-16.7
Net cash inflow from operating activities	22.7	45.7	-23.0	-50.3
Net cash outflow from investing activities	-6.5	-3.4	-3.1	-91.2
Free cash flow	16.2	42.3	-26.1	-61.7
Net cash outflow from financing activities	-48.5	-39.4	-9.1	-23.1
Net change in cash funds	-32.2	2.9	-35.1	-1,210.3
Cash funds as of Dec. 31	-27.1	4.5	-31.6	-702-2

• Free cash flow significantly below prior year:

  • lower earnings before taxes

Significant increase in net operating working capital due to high trade accounts receivable as of the reporting date and increased inventories significantly above prior year

• Cash outflow from financing activities includes dividend payment of €38.8 million (previous year: €30.8 million)
• Dividend proposal for 2022: €2.20 per no-par value share entitled to dividend (total: €28.4 million)

NOWC turnover, ROCE and Equity Ratio in €m

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	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

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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

• 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 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		Q1 2022	Change
	Q1 2023		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 prioryear 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

EBIT-Bridge Q1 in €m

*Rounding differences may occure

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Overview 2013 - 2022 in €m

		2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
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

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Overview Revenue, EBIT and EBIT-Marge in €m

Revenue EBIT

DSO DIO DPO

Overview Net income, Free cash flow, dividend in €m

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
June 15, 2023	Warburg Highlights Conference, Hamburg
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.