WashTec AG: Strong growth in half-year revenue and half-year earnings

Press release

Strong growth in half-year revenue and half-year earnings

- Revenue increased by 24.1% to EUR209.9m (prior year: EUR169.2m)

- EBIT up by 61.3% to EUR25.0m (prior year: EUR15.5m)

- Both Europe and North America contributing to growth

- Very positive outlook maintained for the full year: full year revenue of at least EUR420m with EBIT margin in excess of 12%

Augsburg, July 28, 2017 - After the second quarter with a revenue of EUR108.6m (prior year: EUR92.4m), revenue for the half year ending June 2017 of WashTec Group - the leading supplier of innovative solutions for the carwash business worldwide - was EUR209.9m and therefore EUR40.7m or 24.1% higher than revenue in the prior-year period (EUR169.2m). This results from the sustained positive trend in Europe (with an increase of 18.6% or EUR25.8m) and continued strong revenue growth in North America (increase of 75.4% or EUR18.7m). The increase in North America relates to business with major customers. Second quarter revenue growth was at 17.5%. Growth was notably driven by Equipment and Service (+20.3%), while revenue performance in the remaining businesses was likewise positive (Chemicals +17.2%, Operations business and others +17.7%).

EBIT improved by 61.3% to EUR25.0m (prior year: EUR15.5m) at the same time as investment was made in further growth. In Germany, the regional sales and service offices are to be consolidated, with functions brought together at the Company's Augsburg headquarters by the end of the year. This will streamline and optimize processes for an even better and more flexible customer service. Second quarter EBIT was therefore and among other things affected by non-recurring effects. The EBIT ratio as of June was at 11.9% (prior year: 9.2%).

The balance sheet structure of WashTec is unchanged solid. Due to the dividend payout of EUR28.1m equity ratio went down from 40.1% to 33.0% compared with the 2016 year-end. Net cash flow decreased in the first half year to EUR7.5m (prior year: EUR16.1m). It should be noted in this context that large tax payments have been made this year on earnings from previous years, whereas in the prior year there was a refund of tax on investment income. Adjusted for these non-recurring effects, the net cash flows from operating activities increased by 12.2% or EUR1.8m.

Forecast 2017: revenue growth to at least EUR420m with EBIT margin in excess of 12%

Following the strong first half year and with the ongoing positive trend of order intake, the Company expects an ongoing positive development for the full year 2017. The Company targets now aims at revenue totaling at least EUR420m with an EBIT margin in excess of 12%.

General risk information
The forecast for the specified key performance indicators given in the Annual Report 2016 likewise continues to apply. Any outlook for 2017 is subject to uncertainties that could have a material effect on forecasted revenue and earnings performance.

The full H1 report and further information about WashTec can be found on: www.washtec.de.

Information on WashTec:
The WashTec Group has its registered office in Augsburg, Germany, and is the leading supplier of innovative solutions for the car wash business worldwide. WashTec has more than 1,700 employees and has its own subsidiaries in all key markets in Europe, North America as well as China and Australia. WashTec also has a broad network of independent sales partners and is thereby represented in roughly 70 countries.

Key figures:

(Definition of key figures see at glossary of the Annual Report 2016)

* Basis: on average number of shares: 13,382,324

Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg

Tel.: +49 (0)821 - 55 84 - 0
Fax: +49 (0)821 - 55 84 - 1135