Washtec Ag · XETR:WSU
Washtec — Investor Presentation (November 2024)
40 slides from Washtec's investor presentation, November 2024
Slide 1: Company Presentation
With our effective system sustainable successful. Company Presentation Michael Drolshagen (CEO/CTO) November, 2024
Slide 2: Introduction to WashTec
Introduction to WashTec Q WashTec
Slide 3: We are full-range provider of car wash products and solutions
We are full-range provider of car wash products and solutions Digital Platform Equipment Rollover Tunnel Truck & Bus Jet Wash After Sales Water Recycling Consumables Service 3 | IR November 2024 | WashTec AG
Slide 4: Our installed base – 53,500 units
Our installed base – 53.500 units ▪ 53,500 machines in operation, washing 3 million cars/day Europe ▪ With over 32,000 Roll Over Installed base North America machines clear market leader ~ 45,000 Installed base ~ 6,000 ▪ High potential of machines with Water recycling Oceania Installed base ~ 2,500
Slide 5: WashTec is world market leader with an installed base of 53,500 units
WashTec is world market leader with an installed base of 53,500 units 53,500 machines in operation, washing 3 million cars/day Around 1,800 employees thereof 700+ own service technicians Global footprint with own structures plus sales partner in about 80 countries 50 years of innovation leadership S
Slide 6: We serve global and local customers
We serve global and local customers Mobility Hubs Retail Automotive Wash centers Distribution of sales by customer: ▪ We generate ~40% of our sales with key accounts (major customers). This ensures stable capacity utilisation. ▪ In some regions, the key account share is somewhat higher WashTec is th
Slide 7: Our Team – ~1,800 highly motivated WashTecs
Our Team – ~1.800 highly motivated „WashTecs“ North America Europe ▪ ~ 1,800 employees worldwide ▪ over 700 service employees worldwide we ensure high uptime for our customers Oceania 7 | IR November 2024 | WashTec AG
Slide 8: Our global production footprint
Our global production footprint Recklinghausen Nyrany Denver Grebenau Augsburg North America Europe Revenue 2023: €m 102.9 Revenue 2023: €m 378.9 Optimized value streams for products – product platform - local and global 8 | IR November 2024 | WashTec AG
Slide 9: Global Goods Flow – Purchasing Direct Material
Global Goods Flow – Purchasing Direct Material NA to EU EU to EU ASIA to NA 0.3% 98.9% 0.3% ASIA to EU EU to NA 0.8% 12.8% NA to NA 86.9% ASIA to Australia 1.0% EU to AU 72.5% AU to AU 15.8% NA to AU 10.7% 9 | IR November 2024 | WashTec AG
Slide 10: Sustainability is an integrated part of our business model
Sustainability is an integrated part of our business model Voluntary sustainability reports since 2021 ESG Website AUWA Promotes Biodiversity: Ecological Reserve on Factory Premises 10 | IR November 2024 | WashTec AG
Slide 11: Update on WashTec
Update on WashtTec Q WashTec
Slide 12: Sharpening our strategy – from machine supplier to ecosystem
Sharpening our strategy – from machine supplier to ecosystem Enabler Supporter Ecosystem / Unique Selling Point our overall successful strategy remains: ➢ We focus on Total Customer Care ➢ We focus on Europe and North America 12 | IR November 2024 | WashTec AG
Slide 13: What are our key focus items in Europe
What are our key focus items in Europe Digital Initiatives / Profitability Focus Convenience Sustainability Products *1 Full offering of high end *2 Reduction in washing Bundling of our total time while maintaining Rollover machine for Green Car Care offering top washing results Europe *3 Optimize p
Slide 14: New Rollover: SmartCare & SoftCareSE
*1) New Rollover: Smart Care & SoftcareSE today from mid of May 2024 onwards ➢ SmartCare is fully fledged & digitalized. ➢ SoftcareSE has similar pricing like former EasyWash with higher SmartCare SmartCare functionality. full digital offering SoftCare² SoftCare² ➢ Based on our platform ramp up peri
Slide 15: AUWA cleaning and care chemicals in new packaging
*2) AUWA Chemicals – CHEM-IN-A-BOX / New smart chemical packaging AUWA cleaning and care chemicals in new packaging Environmentally friendly – safe – comfortable AUWA CHEM-IN-A-BOX is an innovative packaging concept in which the washing chemicals are packaged in a 10-litre plastic bag with an integr
Slide 16: AUWA MagicCare
*2) AUWA Chemicals - MagicCare Coming soon: A new dimension of car care – AUWA MagicCare Special ingredients actively form a 3D MagicCare provides visible and tangible, cross-linked layer with exceptional long-lasting protection for clear coat properties surfaces against environmental factors like U
Slide 17: Development & reseller agreement of SuperOperator and WashTec signed
*3) Contractual development & reseller agreement of SuperOperator and WashTec are signed Contractual development & reseller agreement are signed + 17 | IR November 2024 | WashTec AG
Slide 18: What are our key focus items in North America
What are our key focus items in North America Products / Profitability focus Convenience Sustainability* Operators´ services Unmanned mini tunnel & Increase development Smart Choice and production Speed up washtime Water NA chemical brand Efficiency program Energy (Race to Pikes Peak) One stop shop
Slide 19: Car Wash Alliance at Sema Show in Las Vegas
Car Wash Alliance at Sema Show in Las Vegas ▪ Official brand launch at the SEMA trade fair in Las Vegas (5 - 8 November 2024). ▪ MarkVII will operate on the US market under the new brand: ‘Car Wash Alliance - The chemistry that bonds’. 19 | IR November 2024 | WashTec AG
Slide 20: Latest figures: 2.6% higher EBIT on lower revenue
Latest figures: 2.6% higher EBIT on lower revenue ▪ Revenue down on prior year Q1–Q3 Q1–Q3 Q1–Q3 Change 2024 2023 WashTec generated revenue of €334.2m in the first nine absolute in % months, down 6.3% on the prior year (€356.7m). This was Revenue €m 334.2 356.7 –22.5 –6.3 mainly the result of lower
Slide 21: Development of order backlog
Development of order backlog ▪ After Q2/24 also Q3/24 with increasing order intake compared to previous year ▪ Order Backlog 30/9/24 in Europe and other as well as in North America above previous year level ▪ Also, from a long-term perspective high order backlog level (compared to year-end 2020 at 1
Slide 22: Guidance 2024
Guidance 2024 2023 Guidance 2024 +/- 3% to PY – currently expects to be at the lower end of Revenue €489.5m the guidance range EBIT €41.9m Increase in mid-single-digit percentage range Free Cash Flow €46.1m €m 30–40 ROCE 21.5% ± 1 percentage point This forecast is fundamentally subject to uncertaint
Slide 23: 23 | IR November 2024 | WashTec AG
23 | IR November 2024 | WashTec AG
Slide 24: Financial calendar 2024/2025
Financial calendar 2024/2025 Date March 26, 2025 Annual report 2024/Annual press conference May 6, 2025 Quarterly statement Q1 2025 May 13, 2025 Annual General Meeting 2025, Augsburg August 5, 2025 H1 Report 2025 November 5, 2025 Quarterly statement Q1–3 2025 24 | IR November 2024 | WashTec AG
Slide 25: BackUp
BackUp 25 | IR November 2024 | WashTec AG
Slide 26: 2.6% higher EBIT on lower revenue
2.6% higher EBIT on lower revenue ▪ Revenue down on prior year Q1–Q3 Q1–Q3 Q1–Q3 Change 2024 2023 WashTec generated revenue of €334.2m in the first nine absolute in % months, down 6.3% on the prior year (€356.7m). This was Revenue €m 334.2 356.7 –22.5 –6.3 mainly the result of lower sales of equipme
Slide 27: Third-quarter EBIT margin of 9.6% at same level as prior year
Third-quarter EBIT margin of 9.6% at same level as prior year Q3 Q3 2024 Q3 2023 Change ▪ Third-quarter revenue down on prior year Following a 6.8% revenue decline the first half-year, third- absolute in % quarter revenue was down 5.2%. The revenue generated Revenue €m 114.1 120.4 –6.3 –5.2 was €114
Slide 28: Long-term Group revenue and earnings
Long-term Group revenue and earnings ▪ 5-years perspective we need to take into consideration that 2020 was the Covid year. ▪ Similar picture in comparison of Q3/22 with Q3/24: slightly lower revenues (-3.8%) with significant higher EBIT (+12.3%); EBIT margin now at 9.6%. ▪ Compared to 2022 based on
Slide 29: Q1–Q3 and Q3 revenue by region
Q1–Q3 and Q3 revenue by region ▪ Europe and other: Revenue adjusted by China effect (part of the group in 2023) is on ▪ Europe and other: Revenue performance in the third quarter was positively influenced the level of prior year and is still impacted the weak first quarter, which saw difficult by ke
Slide 30: Q1–Q3 and Q3 EBIT by region
Q1–Q3 and Q3 EBIT by region ▪ Europe and other: EBIT improvement mainly due to efficiency programs to optimize ▪ Europe and other: EBIT on prior year level. EBIT-ratio improved from 10.1% up to production costs and to the prior-year sales price increases. 10.3%. ▪ North America: EBIT decrease is dri
Slide 31: Revenue by product
Revenue by product Revenue by product Q1–Q3 ▪ Equipment and service: Direct sales down to previous year due to weak order backlog at the beginning of the year in €m Q1–Q3 Q1–Q3 Change and lower order intake in the first months. Key Accounts 2024 2023 absolute in % sales in North America significant
Slide 32: Q1–Q3 EBIT bridge
Q1–Q3 EBIT bridge ▪ Efficiency programs to optimize production costs and the sales price increases over the last years overcompensate the revenue short fall and leads to an improvement of GP Margin. ▪ Selling expenses as a percentage of revenue went up from 13.1% in the prior year to 14.1%. The incr
Slide 33: NOWC, free cash flow, net financial debt, equity ratio
NOWC, free cash flow, net financial debt, equity ratio ▪ NOWC on the prior year level. The increase compared to the end of 2023 is mainly due to the usual rise in inventories at the beginning of the year and an orders- driven build-up of finished goods inventories as part of optimizing the productio
Slide 34: Development of order backlog
Development of order backlog ▪ After Q2/24 also Q3/24 with increasing order intake compared to previous year ▪ Order Backlog 30/9/24 in Europe and other as well as in North America above previous year level ▪ Also, from a long-term perspective high order backlog level (compared to year-end 2020 at 1
Slide 35: Longterm financial figures
3 2023 Longterm financial figures* *Rounding differences may occur
Slide 36: Overview 2013 – 2023
Overview 2013 – 2023 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue €m 299.7 302.6 340.9 372.8 425.0 435.4 436.5 378.7 430.5 482.2 489.5 EBIT €m 17.1 18.4 36.4 44.1 52.2 51.2 36.3 20.1 45.7 38.0 41.9 EBIT margin in % 5.7 6.1 10.7 11.8 12.3 11.8 8.3 5.3 10.6 7.9 8.6 EBT €m 15.8 17.7 3
Slide 37: Overview revenue, EBIT and EBIT margin
Overview revenue, EBIT and EBIT margin in €m 482.2 489.5 425.0 435.4 436.5 430.5 372.8 378.7 340.9 299.7 302.6 EBIT margin 5.7% 6.1% 10.7% 11.8% 12.3% 11.8% 8.3% 5.3 % 10.6% 7.9% 8.6% 44.1 52.2 51.5 45.7 38.0 41.9 36.4 36.3 17.1 18.4 20.1 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenu
Slide 38: Cash cycle
Cash cycle in days 140 132 130 130 124 121 115 114 112 107 107 50 48 50 49 58 65 54 54 60 63 58 113 118 106 104 92 91 95 91 82 76 82 -29 -28 -26 -23 -29 -30 -32 -33 -31 -33 -34 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 DSO DIO DPO 38 | IR November 2024 | WashTec AG
Slide 39: Overview net income, free cash flow, dividend
Overview net income, free cash flow, dividend in €m 46 46 Net income 42 Free cash flow 39 37 Dividend for the year 34 33 32 33 31 31 31 28 28 29 28 29 26 26 25 25 23 23 22 21 16 15 16 13 13 11 9 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 pandemic Dividend/Share 0.64 1.65 1.70 2.10 2.45
Slide 40: Disclaimer
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