WashTec continues to grow profitably in spite of difficult general economic conditions

- Revenue growth of over 13% to EUR 140.4m exceeds expectations, primarily as a result of the expansion of the market position

- EBIT increases from EUR 6.7m to EUR 7.4m, comparable adjusted EBIT improves from EUR 6.4m to EUR 7.9m

- Substantiation of Guidance for 2011: revenue increase of 6 - 8% compared to 2010 and EBIT margin expected in the lower part of the 8 - 9% Guidance range

Augsburg, August 5, 2011 - WashTec AG - the leading supplier of innovative solutions for the car wash business worldwide - is continuing on a profitable course of growth as of mid-year 2011, in spite of the unchanged difficult general economic conditions. Thus, consolidated revenues exceeded Company expectations with a growth rate of 13.5% to EUR 140.4m (prior year: EUR 123.7m). This increase results primarily from the expansion of the market position in North America and in Australia, as well as the expansion of chemical activities following the acquisition of AdeKema in Northern Europe. Adjusted by this external growth, WashTec is showing an organic increase in revenues of approx. 4%, in spite of the continued reluctance in lending and the resulting investment delays of customers. The organic growth can be ascribed particularly to the »Emerging Europe« region and to the rise in revenues from the chemicals and operations business in Core Europe. In spite of increasing raw materials costs and labor costs, the Company succeeded in improving both the gross profit margin as well as the personnel expense ratio compared to the first quarter of 2011. The EBIT (Earnings Before Interest and Taxes) adjusted for non-recurring effects and foreign exchange effects, which were positive in 2010 and negative in 2011, increased significantly by 23.4% from EUR 6.4m to EUR 7.9m. The reported EBIT increased from EUR 6.7m to EUR 7.4m. WashTec showed a gain in EBT of approx. 18% to EUR 6.6m. Earnings per share increased by more than half, from EUR 0.19 to EUR 0.30. The key balance sheet figures remain very solid. In light of this, WashTec substantiates its previously communicated forecast for the full year, that the company expects a 6 - 8% increase in revenues and that the EBIT margin will be at the lower part of the 8 - 9% range (prior year: 7.6%).

'As of mid-year 2011, we were able to achieve further significant growth. Thereby, WashTec profited from the strong global expansion. However, in spite of difficult general economic conditions it was also able to achieve moderate organic growth. This confirms our optimism to increase total year revenues by 6 - 8% and further improve profitability', said Thorsten Krüger, CEO of WashTec AG, with respect to the development of the first half of 2011.

Financing secured for the long term
Amongst others, the changes in net current assets resulting from the strong growth led to a reduced net cash flow of EUR 5.4m, down from EUR 14.0m. Added to this is an extremely high cash flow in the first half of 2010, resulting from the early settlement of trade payables at the end of 2009. Free cash flow was positive at EUR 0.7m in spite of higher investments in the expansion of the Group. The quality of the balance sheet remains good: thus, the equity ratio increased from 43.5% at the end of 2010 to 44.4% currently. Since the net finance debt increased from EUR 26.6m to EUR 29.6m as a result of the investments, the gearing also increased from 0.28 to 0.32. In the second quarter, the Company was also able to secure its financing for the long term. As of May 31, 2011, the existing syndicated loan was superseded by a revolving loan with a term expiring December 31, 2014 and totaling EUR 45m.

Annual guidance substantiated
Given the results achieved to date, the Company is holding to its previously communicated targets for the entire 2011 year. In Core Europe, the Company expects a slight organic growth in revenues and stable earnings development for 2011. In North America, despite the continued difficult market environment, WashTec is striving for a substantial increase in revenues for 2011 based on the improved market position particularly in Canada and expects that the North American business will generated a sustained profit for the first time ever. In the »Emerging Europe« region, WashTec is assuming that the strong revenue increase of the first quarter will be leveled- off during the course of the entire year and that earnings will develop commensurately. In the »Asia/Pacific« region, the Company is expecting a significant growth in revenues for the entire year based on the effects from the acquisition in Australia and a balanced result.

At Group level, WashTec is seeking a significant revenue growth rate of 6 - 8% over last year; a rate which is nevertheless less than the growth rate achieved in the first half of this year. Combined with the implemented and planned measures for improving the efficiency and cost structures, such a growth rate should yield a significant increase in earnings compared to 2010. The improvement in earnings is expected to exceed the targeted growth in revenues. The first-year startup effects relating to the non-organic growth will, however, dilute the EBIT margin so that the Company expects it to be in the lower part of the 8 - 9% Guidance range for the entire year. In connection with the mid-term planning in the second half of the year, additional projects for improving efficiency should be analyzed and launched.

As in the past, WashTec will be selectively seeking external growth opportunities as part of its expansion policy. This should serve to improve the Group's regional presence, expand the value chain to include higher margin activities and improve the Group's overall return on capital. The financial resources required for this endeavor from today's perspective can be financed from the Group's own cash flow.

Key Group financial information as of the first half year:

*: Adjusted for non-recurring effects including foreign exchange effects
**: Basis: unchanged number of shares 13,976,970
***: Trade receivables + Inventories - Trade payables
****: »Return On Capital Employed« = adjusted EBIT / (total assets - current liabilities - cash and cash equivalents)
*****: Net finance debt to equity capital

Additional information about the Company and the first half year 2011 report of WashTec AG are available for download from our website at www.washtec.de.

Information on WashTec:
The WashTec Group has its registered offices in Augsburg, Germany, and is the leading supplier of innovative solutions for the car wash business worldwide. WashTec employs more than 1,600 persons worldwide and has 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.

Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg

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