05. May 2014

WashTec AG: Increase in earnings compared to the same period last year despite slight revenue decline; favorable business performance in Core Europe; cumulative incoming orders slightly higher than prior year

WashTec AG / Key word(s): Quarter Results

05.05.2014 / 07:30

- Revenues at EUR 64.8m (prior year: EUR 65.3m); EBIT at EUR -0.4m (prior year: EUR -1.2m); net cash flow EUR 5.4m (prior year: EUR 5.5m)

- Positive development of the chemicals and service business in Europe

- Dr. Günter Blaschke and Ulrich Bellgardt nominated for election to the Supervisory Board

Augsburg, May 5, 2014 - Revenues of WashTec Group - the leading supplier of innovative solutions for the carwash business worldwide - in the first quarter 2014 totaled EUR 64.8m and thus were EUR 0.5m below the same period last year. In Core Europe, revenues from chemicals and services increased also due to the mild weather. In the other regions revenues declined.

EBIT (earnings before interest and taxes) compared to prior year increased by EUR 0.8m to EUR -0.4m - primarily due to the positive development of revenues and earnings in Core Europe. EBIT in Core Europe rose to EUR 0.4m (previous year: EUR -1.1m). The result of North America and Asia/Pacific was stable. In Eastern Europe, earnings fell due to the decline in revenues and the expansion of distribution channels .

Order backlog, which had been low at the beginning of the year, has increased especially because of the high order intake in Core Europe during the first quarter. Order intake of the markets in Eastern Europe, Asia and America, however, remained below the prior year. Thus, order backlog of the group as of the end of the first quarter was slightly below prior year's level.

Good balance sheet quality and strong cash flow

WashTec continously is characterized by a very solid balance sheet. Net financial debt (net bank debt plus long-term and short-term finance leasing) as of March 31, 2014 was negative and decreased to EUR -1.4m (End of 2013: EUR 2.9m). The equity ratio decreased to 49.5% (End of 2013: 50.4%) primarily due to the increased balance sheet total. The net cash flow in the first quarter with EUR 5.4m (prior year EUR 5.5m) again was significantly positive.

Election proposals to the Annual General Meeting

With the invitation to the Annual General Meeting, the Supervisory Board nominated Dr. Günter Blaschke, former CEO of Rational AG, and Mr. Ulrich Bellgardt, managing partner at the consulting firm ubc GmbH, for election to the Supervisory Board. Dr. Blaschke is designated to become chairman of the Supervisory Board. Mr. Michael Busch, chairman of the Supervisory Board of WashTec AG, and Mr. Massimo Pedrazzini, vice chairman of the Supervisory Board, will resign with effect as from the end of this year's Annual General Meeting scheduled for June 4, 2014.

Efficiency program

Management Board and Supervisory Board have agreed to develop and to implement further measures to increase efficiency. Given stable market conditions, these measures should increase profitability to 8% EBIT margin in 2016. One-off costs are estimated to total up to EUR 3.0m.

Outlook for 2014: Stable revenues with stable EBIT margin before restructuring costs

After the end of the first quarter, due to the current political and economic developments in Eastern Europe and Asia, the company for the year 2014 strives for stable revenues and a stable EBIT margin before restructuring costs of the announced efficiency program announced.
The following development of the individual segments is expected:

- Core Europe: Slightly increasing revenues and earnings

- Eastern Europe: Stable revenues with less than proportional earnings as a result of investments into structures

- North America: Positive earnings with stable or slightly declining revenues

- Asia/Pacific: Stable revenues with less than proportional earnings due to investments.

Due to the currently uncertain overall development in submarkets a forecast for 2014 is subject to uncertainties.

The full quarterly report and additional information about the company can be found on our website, www.washtec.de

Key financial information of the Group for the first quarter:

EURm, IFRS Q1-2014 Q1-2013
Revenues 64.8 65.3
EBITDA 2.0 1.3
EBIT -0.4 -1.2
EBIT margin (in %) -0.6 -1.9
EBT -0.6 -1.8
Consolidated net income -0.6 -1.6
Earnings per share* (in EUR) -0.04 -0.11
Net cash flow 5.4 5.5
EURm, IFRS Mar 31, 2014 Dec 31, 2013
Balance sheet total 176.3 174.2
Equity 87.3 87.8
Equity ratio 49.5 % 50.4 %
Net finance debt -1.4 2.9
Net current assets** 62.3 65.2
Employees 1,678 1,681

*Average number of shares as of March 31, 2014: 13,932,312, as of March 31, 2014: 13,954,412
**Trade receivables + inventories - trade payables

About 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 employs more 1,600 persons worldwide and is represented by its subsidiaries in the core markets of Europe, the United States and Canada, as well as in China and Australia. WashTec also has independent sales partners in roughly 60 countries.

Corporate Communications
WashTec AG
Argonstraße 7
86153 Augsburg
Tel.: +49 (0)821 - 55 84 - 0


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