Washtec Ag · XETR:WSU

Washtec — Investor Presentation (August 2015)

47 slides from Washtec's investor presentation, Aug 21, 2015

  1. Slide 1: Experience and Results Investor Presentation

    Experience and Results Investor Presentation

  2. Slide 2: Content

    Content 1. WashTec at a Glance 2. Market & Strategy 3. Facts & Figures 2 | WashTec Investor Presentation | July 2015

  3. Slide 3: Leading provider of carwash solutions worldwide

    WashTec at a Glance Leading provider of carwash solutions worldwide Complete product portfolio along the carwash value chain Distribution of Revenue (€302.6m 2014) Equipment & Service Chemicals Marketing Operations Financing > 80% ~ 11% < 3% < 3% < 3%  Production facilities in Ger, CZ, USA, CHN Inn

  4. Slide 4: WashTec characteristics

    WashTec at a Glance WashTec characteristics Global setup Leading market position & longterm customer base  Broad direct sales & service setup with regional footprint  Stable business model due to long-term relation- represented in over 60 countries with more than 1,600 ships with key accounts and

  5. Slide 5: Global setup and revenue split

    WashTec at a Glance Global setup and revenue split Distribution of revenue 2014: €302.6m North America <15% Eastern Europe <5% Asia/Pacific <5% Core Europe >80% Consolidation effects not included 5 | WashTec Investor Presentation | July 2015

  6. Slide 6: Our main products and customer segments

    WashTec at a Glance Our main products and customer segments Commercial wash Non-commercial wash Non- • Large accounts operating gas stations Fuel • Car dealers and fleets • Supermarket chains 30% • Forwarding companies, coach • Independent operators 302m operator Car MOC Dealer 10% 60% Hobby-wash Ro

  7. Slide 7: Financials

    WashTec at a Glance Financials Solid Balance Sheet Structures Free Cash Flow 25.1  Equity ratio of 48.9%  Sustainable 19.6 19.1 cash flows 15.7  Net debt/EBITDA < 0 8.4  ROCE of 18.7% 2014 2013 2012 2011 2010 Attractive return Solid Business Model 302.6 301.5 299.7  Dividend of € 0.64 in 2014 

  8. Slide 8: Content

    Content 1. WashTec at a Glance 2. Market & Strategy 3. Facts & Figures 8 | WashTec Investor Presentation | July 2015

  9. Slide 9: Key Drivers for automatic Carwash Growth

    Market & Strategy Key Drivers for automatic Carwash Growth Carwash Business model  Automatization & capacity need  Profitability of professional carwash Consumer demand  Convenience & speed of carwash  Quality of carwash  Automated carwash vs. carwash by hand Market drivers Economy Environment

  10. Slide 10: Global car wash markets and WashTec's position

    Market & Strategy Global car wash markets and WashTecs position Core Europe North America Eastern Asia/Pacific (incl. Middle East Central and Europe AUS&NZ) and Africa Latin America  Number of cars1) 203 Mio. 149 Mio. 77 Mio. 310 Mio. 50 Mio. 80 Mio.  Market growth2) 0% 7–8% 2–5% +15% +x% +3-5%+x%

  11. Slide 11: Innovation, iService, iProd, iSales – value add and customer oriented

    Market & Strategy innovation, iService, iProd, iSales – value add and customer oriented Customer Expectations Experience Speed Convenience Quality  Turbo-Nozzels  Drive-In  Drive-In  Wheel Jet  Power-Foam  Polish to Go  Flexible Touch Pay  Flex Stream  Color-Foam  Customized Programs  Adv

  12. Slide 12: Global Production – Leverage of global sourcing

    Market & Strategy Global Production – Leverage of global sourcing as key factor to drive efficiency Global Supply Chain Organization Final assembly close to end customer & engineering Final Optimized labor Products and logistics costs 0 km Customized Components +500 km Optimal cost Structure supplyi

  13. Slide 13: Strategy Summary

    Market & Strategy Strategy Summary Growth organic and through Development of product portfolio selective acquisitions Culture, Team Sales Models Quality Efficiency Growth Growth China Eastern Europe Ongoing initiatives to improve efficiency Operational Transparency, Excellence Competitiveness Innova

  14. Slide 14: Content

    Content 1. WashTec at a Glance 2. Market & Strategy 3. Facts & Figures 14 | WashTec Investor Presentation | July 2015

  15. Slide 15: Achievements 2014

    Facts & Figures Achievements 2014 2014 2013 2012 Revenues 302.6 299.7 301.5 EBITDA 28.6 27.1 29.2 EBIT 18.4 17.1 19.2 Consolidated net income 12.7 11.2 10.1 Earnings per share * 0.91 0.80 0.72 Net cash flow 29.2 21.0 23.1 Equity ratio 48.9 50.4 46.0 Net financial debt -15.4 2.9 8.3 * Approx. Shares:

  16. Slide 16: Revenues development across our offer

    Facts & Figures Revenues development across our offer in €m 2014 2013 Change Equipment & Service 255.7 255.2 +0.5 Chemicals 34.3 32.0 +2.3 Operations business and others 12.6 12.5 +0.1 Total 302.6 299.7 +2.9 16 | WashTec Investor Presentation | July 2015

  17. Slide 17: Balance sheet structure improved once again

    Facts & Figures Balance sheet structure improved once again Equity ratio (in %)* Net financial debt** (in €m) 8.3 50.4 2.9 48.9 46.0 -9.8 2012 2013 2014 2012 2013 2014 ** Net bank debt plus long-term and short-term Comparative figures adjusted as per IAS 8 finance leasing debt Independent funding of

  18. Slide 18: Solid revenue and earnings development

    Facts & Figures Solid revenue and earnings development Revenues (in €m) EBIT margin (in %) Net Cash Flow (in €m) 302.6 301.5 299.7 29.2 6.4 23.1 6.1 21.0 5.7 2012 2013 2014 2012 2013 2014 2012 2013 2014 18 | WashTec Investor Presentation | July 2015

  19. Slide 19: Revenues and earnings development

    Facts & Figures Revenues and earnings development Revenues total Revenues by segment in €m in €m +2.9 Core Europe North America Eastern Europe Asia/Pacific 302.6 250.1 299.7 244.5 45.0 +5.6 43.2 +0.2 -2.1 -1.8 13.2 12.3 12.5 11.1 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2014 Revenues increa

  20. Slide 20: Earnings development

    Facts & Figures Earnings development EBIT total EBIT by segment in €m in €m* Core Europe North America Eastern Europe Asia/Pacific +1.3 18.4 +2.1 17.6 17.1 15.5 -0.8 1.5 -0.6 0.6 +0.2 0.0 0.0 0.2 0.7 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 *2014 EBIT before restructuring costs at € 20.0m R

  21. Slide 21: H1 2015: Strongest H1 in WashTec's history

    Facts & Figures H1 2015: Strongest H1 in WashTec‘s history Revenues (in €m): + 13,2% incl. FX EBIT (in €m): more than doubled Net Cash Flow (in €m) 160.6 13.8 12.9 141.9 139.9 7.7 7.3 5.9 2.8 2013 2014 2015 2013 2014 2015 2013 2014 2015 Continuous positive messages to capital market 21 | WashTec Inv

  22. Slide 22: Revenues and earnings improved in all segments

    Facts & Figures Revenues and earnings improved in all segments Revenues total (H1) Revenues by segment (H1) in €m in €m 160.6 Core Europe North America Eastern Europe Asia/Pacific 141.9 +18.7 128.4 +10.7 117.7 +6.4 27.2 20.8 + 2.2 7.3 + 0.6 5.3 5.1 4.7 H1/2014 H1/2015 H1/2014 H1/2015 H1/2014 H1/2015

  23. Slide 23: Positive outlook 2015 confirmed

    Facts & Figures Positive outlook 2015 confirmed WashTec Group: significant increase in revenues and earnings - revenues increase of more than 5 %, adjusted for currency effects - half-year EBIT ratio of 8.6% confirmed for fy 2015 - Stronger Q3 2015 expected compared to €74,2m in 2014 - Q4 in 2014 wa

  24. Slide 24: Backup

    Backup 24 | WashTec Investor Presentation | July 2015

  25. Slide 25: Automatic Car Wash industry exists for > 60 years

    Backup Automatic Car Wash industry exists for > 60 years Chicago 1920 2007 2009 2010 2012 Acquisitions Foundation Acquisitions Foundation in Spain and of subsidiary Australia, of subsidiary USA in the Czech Canada and in Poland Republic Scandinavia Germany app. 1960 Merger of Acquisition Acquisition

  26. Slide 26: Board of Management

    Backup Board of Management Dr. Volker Zimmermann Karoline Kalb Rainer Springs Stephan Weber c (CTO/CEO) (CHRO) c (CFO) c (CSO) c Areas: Supply Chain, Areas: Legal & Compliance, Areas: Finance and IT Areas: Sales and Service, Development, Service Investor Relations, Human Product Management & Support

  27. Slide 27: Supervisory Board

    Backup Supervisory Board Independent & institutional representatives with broad knowledge of industry & finance Dr. Günter Blaschke (Chairman) Jens Große-Allermann Roland Lacher Chair of the Personnel Committee, Chair of the Nominating Committee, Member of the Personell member of the Audit Committee

  28. Slide 28: WashTec uniquely addresses business drivers in the carwash industry

    Backup WashTec uniquely addresses business drivers in the carwash industry Key Account Management Service Network Technological Expertise  Central KAM at headquarters  500 own technican (EUR) + 300  Innovation leader in Augsburg & regional contacts technicians at sales partners  Equipment and Wa

  29. Slide 29: Competition

    Backup Competition Core Europe North Eastern Asia/Pacific Middle East Central and America Europe (incl. AUS&NZ) and Africa Latin America •AUS/NZ: Customer •Consolidated •See Core Europe MOC + •Fragmented •Local Key Accounts Structure independent •High share of •High share of •plus local Key Accounts

  30. Slide 30: Development phases

    Backup Development phases Cost of Operation (labour, natural resources,...) high Automatic wash Mature markets Jet Wash Growing markets low low high Hand wash Customer sophistication & environmental regulation market volume (time, spending, education, ressources) Base enabler: increasing gdp, no. of

  31. Slide 31: GDP, Number of cars and cost of operation drive carwash business

    Backup GDP, Number of cars and cost of operation drive carwash business + Market Growth –  Assess market  Increase in professionalism/tech.  Highly competitive mature  Distribution via dealers  Development of sales partners  Development of own key accounting  Own sales and service  Automatic

  32. Slide 32: Car Wash Drivers Technology

    Backup Car Wash Drivers Technology – Continued innovations with focus on measurable added value for operators & wash customers Equipment quality & reliability and availability Compliance:  Better wash and drying result for customer Quality and  Compliance with stricter regulations Safety  Reducti

  33. Slide 33: CarWash operations costs and profit

    Backup CarWash operations costs and profit CarWash Operations with 15-30% profit as % of revenue Setup Costs for Operator Running Costs for Operator Building Consumable Operations CW Ops and Land CarWash Equipment Services Business Marketing, HR Equipment Profit (i.e.Rent) Lease/Rent Water, Elec. Tr

  34. Slide 34: Segment development in 2014

    Backup Segment development in 2014  Core Europe:  Revenues: € 250.1m (2013: € 244.5m) / EBIT (adjusted): € 17.6m (2013: € 15.5m)  General business development slightly improved  Continued growth in the chemicals segment  North America:  Revenues: € 43.2m (2013: € 45.0m) / EBIT (adjusted): € 0.

  35. Slide 35: Core Europe – clear market leader in a mature market

    Backup Core Europe – clear market leader in a mature market ~ 40%* Market & setup WashTec objectives  Largest installed base & proprietary  Revenues 2014: € 250.1m  Defend leading position & improve sales & service network (2013: € 244.5m) profitability through synergies, innovations and cost opt

  36. Slide 36: North America – growing market after drop 2009-2011

    Backup North America – growing market after drop 2009-2011 > 10%* Market & setup WashTec objectives  Number of cars and automatic wash  Increase market share by: volume high  Gain of new accounts also in  Revenues 2014: € 43.2m customer segments outside gas  Completed and competitive product po

  37. Slide 37: Eastern Europe – market with low saturation

    Backup Eastern Europe – market with low saturation ~ 30%* Market & setup WashTec objectives  Markets dominated by strong local  Revenues 2014: € 11.1m  Strengthen own position with focus on key accounts (2013: € 13.2m) high potential markets:  Strong decline following financial  Rep. offices &

  38. Slide 38: Asia/Pacific: significant growth in CHN

    Backup Asia/Pacific (incl. AUS&NZ): significant growth in CHN < 5%* WashTec objectives Market & setup  CHN:  Own presence in AUS, close contact  Revenues 2014: € 12.5m  Actively develop Chinese market as to local key accounts in CHN first mover and build sales & (2013: € 12.3m) service network 

  39. Slide 39: Key figures 2010-2014

    Backup Key figures 2010-2014 2014 2013 2012 2011* 2010 Revenues 302.6 299.7 301.5 293.3 268.4 EBITDA 28.6 27.1 29.2 19.2 29.9 EBIT 18.4 17.1 19.2 –10.4 20.3 Consolidated net income 12.7 11.2 10.1 –14.6 10.8 Earnings per share ** 0.91 0.80 0.72 –1.04 0.77 Net cash flow 29.1 21.0 23.1 17.2 29.1 Equity

  40. Slide 40: Profit/Loss Statement

    Backup Profit/Loss Statement P+L 2014 2013 Revenues 302.6 299.7 Increase due to change in product mix and Gross margin 182.6 (60.3%) 177.8 (59.3%) higher revenues Wage increases especially in Germany, Personnel expenses (111.1) [36.7%] (106.4) [35.5%] effects from restructuring program Efficiency me

  41. Slide 41: Very solid balance sheet structure

    Backup Very solid balance sheet structure Dec. 31, 2014 Dec. 31, 2013 Balance sheet total 185.8 174.2 Goodwill 42.3 42.3 Equity 90.9 87.8 Equity ratio at 48.9% Net financial liquidity by end of Net finance debt -9.8 2.9 2014 due to strong CashFlow Net cash flow 29.2 21.0 Higher prepayments Net curre

  42. Slide 42: Positive development of Cash Flow in 2014

    Backup Positive development of Cash Flow in 2014 Net Cash Flow in €m Investments (CAPEX) in €m 29.2 23.1 21.0 6.5 5.3 3.5 2012 2013 2014 2012 2013 2014 42 | WashTec Investor Presentation | July 2015

  43. Slide 43: Financial calendar

    Backup Financial calendar September 22-24, 2015 Baader Bank October 30, 2015 3Q/2015 Report November 23-25, 2015 Equity Capital Forum 43 | WashTec Investor Presentation | July 2015

  44. Slide 44: WashTec was positively mentioned in many publications

    Backup WashTec was positively mentioned in many publications in the last 6 months Share performance Analyst Coverage Analyst Recommen- Target Price (+ Date) dation (€) Hauck & Aufhäuser Hold 20.00 (06/15) HSBC (06/15) Buy 22.00 WashTec MM Warburg (06/15) Buy 22.70 SDAX Trade Volume (Xetra) Kempen Eu

  45. Slide 45: WashTec share: Value-oriented with attractive return policy

    Backup WashTec share: Value-oriented with attractive return policy  2010: 40% Company Distribution (in %)  2011: no dividend because of North America effects Bertrandt 69 Vossloh 0  2012: € 0.58 (40% + special dividend of SMT Scharf 88 40% to compensate for 2011) Grammer 36  2013: € 0.64 (40% +

  46. Slide 46: Contact

    Backup Contact WashTec AG Argonstr. 7 D-86153 Augsburg www.washtec.de Dr. Johannes Ley Tel.: +49 821 5584-1136 Mail: [email protected] 46 | WashTec Investor Presentation | July 2015

  47. Slide 47: Disclaimer

    No offer: This document does not constitute or form part of an offer for sale or subscription or an invitation or solicitation of an offer to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever

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