Washtec Ag · XETR:WSU
Washtec — Investor Day (April 2022)
69 slides from Washtec's investor day presentation, Apr 7, 2022
Slide 1: Company philosophy, process excellence and leadership culture
Overall company philosophy, process excellence and leadership culture Innovation: smart machines, digital transformation, and sustainability Dr. Ralf Koeppe | CEO | Investor Day April 7, 2022
Slide 2: WashTec's company philosophy
WashTec’s company 1 philosophy Investor Day | April 2022 | WashTec AG
Slide 3: WashTec is world market leader with installed base of 40,000 units
WashTec is world market leader with an installed base of 40,000 units. 40,000 machines in operation, washing 3 million cars/day in peak times Around 1,800 employees thereof 500+ own service technicians Global footprint with own structures plus sales partner in about 80 countries 50 years of innovati
Slide 4: WashTec – Results 2021
WashTec – Results 2021 Revenue ROCE 430.5 m€ 25.8% Free Cash Flow including repayment of lease liabilities 34.5 m€ EBIT 45.7 m€ Dividend proposal EBIT margin 2.10 + 0.80 € 10.6% per share 4 | Investor Day | April 2022 | WashTec AG
Slide 5: Our goal: customer benefit drives sustainable growth and profitability
Our goal no 1 customer benefit is driving sustainable growth and profitability Enablers: New aspects: • Excellent people & processes • Technology leadership & best • Digital offers reliable machines • Best performing Chemicals & Logistics • Best in class • Sustainable worldwide service Car wash We o
Slide 6: WashTec Corporate Philosophy
WashTec Corporate Philosophy 6 | Investor Day | April 2022 | WashTec AG
Slide 7: Car wash as a resilient & sustainable business model
Car wash as a resilient & sustainable business model WashTec is the leading supplier of innovative vehicle wash solutions worldwide. The product range includes all types of vehicle washing systems as well as associated peripheral equipment, washing chemicals and water recovery systems. As specialist
Slide 8: Car wash as a resilient & sustainable business model
Car wash as a resilient & sustainable business model Recurring revenues** consumables, service (installed base and third party) 86.7%* 11.9%* 1.4 %* * percentage of Revenue product segments 2021 ** estimate recurring based on VDMA average 30% service 8 | Investor Day | April 2022 | WashTec AG
Slide 9: WashTec's growth drivers: national income levels, sustainability, mobility
WashTec‘s growth drivers: national income levels, need for sustainability, and mobility Regions Sustainability Car Market Two developments in parallel: ▪ National income ▪ Increasing global car population levels drive automatic car ▪ Conversion hand wash to automatic car wash 2 bn in 2050 wash busin
Slide 10: WashTec Process Excellence & Leadership and Culture
WashTec Process 2 Excellence & Leadership and Culture Investor Day | April 2022 | WashTec AG
Slide 11: WashTec process excellence ensuring effectiveness and efficiency
WashTec process excellence ensuring business effectiveness and efficiency Sales & Service Engineering Supply Chain Excellence Excellence Excellence Efficiency based Innovative customer Connected and agile sales & service centric solutions value stream Digital Digitalization of value chain, product &
Slide 12: WashTec moves ahead! Management initiatives driven by Obeya
WashTec moves ahead! – How? – Management initiatives driven by Obeya Motivation • demonstration of the partial successes • personal contact Transparency • goals • current status Decisions • measures • short-term • cross- • documented departmental • unmistakably OUR 7-points-program for sustainable g
Slide 13: Obeya Leadership & Spirit
Obeya Leadership & Spirit We master We embrace the Agile Process next generation Ideation Week We are striving and Hackathon for excellence Digital Business Models We care about Diversity 13 | Investor Day | April 2022 | WashTec AG
Slide 14: Technology & Innovation Product platform
Technology & 3 Innovation Product platform Investor Day | April 2022 | WashTec AG
Slide 15: Our Mission: Sustainable Car Wash
Our Mission: Sustainable Car Wash Smart Machine Clean Cars Green Water Chemicals Recycling Digitalization 15 | Investor Day | April 2022 | WashTec AG
Slide 16: SmartCare – the first digital carwash machine
WashTecs‘ SmartCare – the first digital carwash machine Remote connectivity and diagnostics Individual control of all settings: pricing, chemical dosing or washing programs Wash program configuration simple and perfectly adaptable to the wash business. Intelligent control: For maximum wash quality,
Slide 17: Global Tunnel Program – 2 scalable world platforms
Global Tunnel Program – 2 scalable world platforms SoftLine 1 SoftLine 2 • Robust and forgiving workhose • High conveyor speed & high throughput • For long tunnels • Mix&Match philosophy • USP Electrical brush control • Markets North America, Asia 17 | Investor Day | April 2022 | WashTec AG
Slide 18: Global Tunnel Program – 2 world platforms
Global Tunnel Program – 2 world platforms SoftLine 1 SoftLine 2 • State of the art in tunnel industry • Premium wash quality • Minimum length thanks to LinearTechnology • Resource efficient • Prooven technology • Fully integrated portfolio • USP Electrical brush control • Markets: Europe, North Amer
Slide 19: Digital Transformation Connectivity & Smart Services
Digital Transformation 4 Connectivity & Smart Services Investor Day | April 2022 | WashTec AG
Slide 20: Digital transformation
Digital transformation 20 | Investor Day | April 2022 | WashTec AG
Slide 21: EasyCarWash - market growth through flat rate washing
WashTec‘s EasyCarWash - market growth through flate rate washing Example Germany 47 mio 6 washes/car € 8,5 average wash price automated washes only 21 | Investor Day | April 2022 | WashTec AG
Slide 22: Digital Transformation – WashTec's Digital Products
Digital Transformation – WashTecs‘ Digital Products SmartCare SmartSite EasyCarWash ▪ RemoteAccess ▪ Maximum comfort ▪ Higher washing frequency ▪ RemoteMonitoring ▪ Automatic incident report ▪ More comfort ▪ RemoteDiagnosis ▪ Saving resources ▪ Marketing support ▪ RemoteAssist ▪ Higher operational r
Slide 23: mywashtec.com is the new platform for digital offers
mywashtec.com is THE NEW PLATFORM that gives our customers access to WashTec's digital offers. mywashtec.com thus forms the bridge to the digital services ... Gain efficiency insights thanks to smart, data-driven reports about your connected machines Thanks to subscriptions, you can increase your wa
Slide 24: myWashtec Service platform – service efficiency and CO2 reduction
myWashtec Service platform – driving service efficiency and CO2 reduction > 20% AI / Data Analytics < 80% 24 | Investor Day | April 2022 | WashTec AG
Slide 25: Sustainability
5 Sustainability Investor Day | April 2022 | WashTec AG
Slide 26: Embedding sustainability in WashTec's business model
Embedding sustainability in WashTec’s business model Sustainability Social Environmental Sustainable strategy sustainability sustainability product operation Diversity CO2 Footprint reduction Chemicals based on natural resources Demographic change Waste reduction Water circulation and Digitalization
Slide 27: Embedding sustainability in WashTec's business model
Embedding sustainability in WashTec’s business model Sustainability Social Environmental Sustainable strategy sustainability sustainability product operation We are committed to integrate sustainability in our business model Strategy and first goals have been set internally and measures have been im
Slide 28: Green Car Care – tailor-made chemicals
Green Car Care – Own tailored made Chemicals for advanced cleaning results and eco-friendliness Sustainable along the entire value chain from the selection of raw materials to production and product use to waste prevention and recycling. 28 | Investor Day | April 2022 | WashTec AG
Slide 29: Green Car Care – tailor-made chemicals
Green Car Care – Own tailored made Chemicals for advanced cleaning results and eco-friendliness Sustainable along the entire value chain from the selection of raw materials to production and product use to waste prevention and recycling. All AUWA formulations meet the strictest green criteria and ex
Slide 30: Global market leadership: regional strategy and service efficiency
Global market leadership: regional strategy / growth and sales efficiency Best in class service: remote support and service efficiency Stephan Weber | CSO | Investor Day April 7, 2022
Slide 31: Agenda
Agenda 1 Global car wash markets – basic data and market position 2 The WashTec growth story - Vision 2030 3 The road ahead – growth targets per region Europe North America APAC 4 How and why to grow – competitive advantages per region – our pitch 5 The toolbox to reach the growth Sales Service Mark
Slide 32: Global car wash markets – basic data and market position
Global car wash markets – basic data and market position CAR WASH MARKET 1) UNECE, eurostat, etc. 2019 2) Market development, WT estimate Europe North America Asia/Pacific Others Numbers of cars1 337 Mio. 326 Mio. 469 Mio.* 195 Mio. Installed base >55,000 >50,000 ~40,000 ~2,500 Market growth² Volume
Slide 33: We are the world market leader. We are WashTec.
We are the world market leader with an installed base of 40,000 units. Every year WashTec delivers best in class solutions to the most car wash operators. Every year WashTec is the No.1 choice for the most car wash operators. Each year, WashTec serves the most car wash operators throughout the world
Slide 34: Extending our lead in the fast-growing vehicle wash market
EXTENDING OUR LEAD IN THE FAST-GROWING VEHICLE WASH MARKET 34 | Investor Day | April 2022 | WashTec AG
Slide 35: WashTec growth story - Vision 2030
WashTec growth story - Vision 2030 800 436 431 379 303 Revenue (in mEUR) Year 2014 … 2019 2020 2021 … 2030 ACTUAL VISION 35 | Investor Day | April 2022 | WashTec AG
Slide 36: The road ahead – growth targets per region
The road ahead – growth targets per region ACTUAL 2021 Europe North America Asia/Pacific Others Global Sales (Mio. EUR) 349 77 18 Included in Europe 431* Sales Mix 78%* 18% 4% 100%* Market Share 34%* 7%(10%) 4% ~5 18% VISION 2030 Europe North America Asia/Pacific Others Global Sales (Mio. EUR) 435 2
Slide 37: Competitive advantages Europe – our pitch
How and why to grow – competitive advantages Europe – our pitch GROWING ON A FIRM FOUNDATION 435 335* 2021 … 2030 THE PITCH OUR COMPETITIVE ADVANTAGE We have the best platform to help operators to be - installed base / market leadership successful and profitable in their car wash - superior market i
Slide 38: Competitive advantages North America – our pitch
How and why to grow – competitive advantages North America – our pitch STRONG GROWTH AMBITIONS 230 77 2021 … 2030 THE PITCH OUR COMPETITIVE ADVANTAGE We offer the full scope, from machines to service - superior roll-over and tunnel equipment to chemicals – a total package to serve key - excellent MO
Slide 39: Competitive advantages Asia / Pacific – our pitch
How and why to grow – competitive advantages Asia / Pacific – our pitch A CLEAR VISION OF THE FUTURE 135 18 2021 … 2030 THE PITCH OUR COMPETITIVE ADVANTAGE Our long-term investment is paying off as we are - we know the challenges and deliver having market access now that the market is - superior lon
Slide 40: We anticipate change and we lead it
WE ANTICIPATE CHANGE AND WE LEAD IT 40 | Investor Day | April 2022 | WashTec AG
Slide 41: The toolbox to reach the growth
1. SALES/Marketing EXCELLENCE: The toolbox to reach the growth In-depth market knowledge and smart software tools allow us to efficiently follow up with reload business and new business. We focus on the right opportunities where we are MARKETING EXCELLENCE highly effective thanks to our consultative
Slide 42: Financial excellence and resilient business model
Financial excellence and resilient business model Dr. Kerstin Reden | CFO | Investor Day | April 7, 2022
Slide 43: Growth and Value: four areas of financial focus
Growth and Value: four areas of financial focus Robust revenue growth and 1 Strong free cashflow 2 double-digit EBIT margins > € 30m > 10% Adj. EBIT margin 3 Generous, 4 Solid balance sheet well-funded > 25% ROCE dividend policy 90% of net income 43 | Investor Day | April 2022 | WashTec AG
Slide 44: Robust revenues growth and double-digit EBIT margins
Robust revenues 1 growth and double-digit EBIT margins Investor Day | April 2022 | WashTec AG
Slide 45: Strong recovery in 2021 to pre-crisis level
Strong recovery in 2021 to pre-crisis level with double-digit EBIT margin in million Euro Revenue Gross Margin Adj. EBIT In % of revenue: In % of revenue: -13% +14% 30% 29% 30% 9% 7% 10% 437 431 379 +65% -32% -17% +19% 43 38 133 131 110 26 2019 2020 2021 2019 2020 2021 2019 2020 2021 Robust & resili
Slide 46: Robust business model supported by recurring revenue
Robust business model supported by recurring revenue ▪ Over 40% of revenue is ▪ During the pandemic, ▪ Digital services recurring revenue from Service and strengthening recurring Chemicals remained revenue streams ▪ Regular replacement of relatively stable machines Recurring revenue from … Service C
Slide 47: Robust underlying revenues & margins
Robust underlying revenues & margins in million Euro Adjusted EBIT margin 6% 11% 12% 12% 12% 9% 7% 10% 425 435 437 431 379 ▪ Strong margin 373 341 recovery in 2021 303 ▪ Speedy emergence from 52 51 pandemic 36 44 38 43 Underlines 18 26 strength of business model 2014 2015 2016 2017 2018 2019 2020 20
Slide 48: Revenue CAGR of 8% 2014-2019; EBIT CAGR 14%
Revenue CAGR of 8% between 2014 and 2019; EBIT CAGR @ 14%* in million Euro Revenue 7% 8% 437 431 Ambition: sustainable 303 379 growth rate of 7% (revenue) 2014 2019 2020 2021 11% (EBIT) over the next 2030 pandemic cycle Adj. EBIT 11% 16% 38 43 18 26 2014 2019 2020 2021 2030 pandemic *Assumption is n
Slide 49: Equipment & services up 15%; Chemicals exceed pre-crisis level
Equipment & services up 15% vs PY; Chemicals exceed pre-crisis level in million Euro Revenue by product Machines & Services Chemicals € 373m € 51m Other Chemicals up 9% 1% up 15% 12% ▪ Machines: strong recovery in direct sales and key account business ▪ Services: strong growth in the Nordics and the
Slide 50: Dependable product performance with CAGR of 7-8%
Dependable product performance with CAGR of 7-8%* in million Euro Revenue from Machines & Services by year 7% 8% 381 373 324 256 2014 2019 2020 2021 2030 pandemic Revenue from Chemicals by year 7% 7% 51 47 47 34 2014 2019 2020 2021 2030 pandemic *Assumption is no major macro-economic downturn from t
Slide 51: Strong recovery in Europe and US; Asia-Pacific hit by lockdowns
Strong recovery both in Europe and US; Asia-Pacific hit by further lockdowns in million Euro Revenue by region Europe North America Asia-Pacific Asia-Pacific 3% Revenue NA Revenue Revenue 17% € 349m € 78m € 18m up 14% up 17% up 2% Adj. EBIT Adj. EBIT Adj. EBIT € 41m € 2m € 1m 80% up 60% up > 100% up
Slide 52: Continuous improvements to achieve ambitious EBIT targets
To achieve our ambitious EBIT targets, we continuously work on improvements SALES EXCELLENCE DIGITAL SERVICES Operational excellence SERVICE EXCELLENCE GREEN SOLUTIONS Smartcare Platform Culture & Values 52 | Investor Day | April 2022 | WashTec AG
Slide 53: Strong cashflow
2 Strong cashflow Investor Day | April 2022 | WashTec AG
Slide 54: High cash flow generation despite volume increase
High cash flow generation despite volume increase of business in € million 54 | Investor Day | April 2022 | WashTec AG
Slide 55: Significant improvement in cash cycle
Significant improvement in cash cycle in million Euro 130 124 121 112 107 107 ▪ The entire Group 49 58 65 focused on improving 60 63 58 DSO and DIO ▪ Significant improvement in many 104 92 91 entities except for 82 76 82 inventories in Germany (main production) due to material shortages -23 -29 -30
Slide 56: Strong balance sheet
Strong 3 balance sheet Investor Day | April 2022 | WashTec AG
Slide 57: Solid balance sheet
Solid balance sheet in million Euro 2020 2021 ∆ Fixed assets 96 93 -3 WC as % of sales: 20% Other long-term assets 12 10 -2 (PY: 21%) Inventories 39 57 19 Receivables 57 67 10 Equity ratio: 37% (PY: 40%) Other short-term assets 21 22 1 Cash 20 18 -2 244 267 ROCE: 26% (PY: 11%) Equity 96 99 2 Long-te
Slide 58: Continuous improvement in NOWC
Continuous improvement in NOWC 23 22 21 20 20 19 NOWC to Rev. 2016 2017 2018 2019 2020 2021 58 | Investor Day | April 2022 | WashTec AG
Slide 59: Stable equity ratio supporting operations
Stable equity ratio supporting operations and enhancing shareholder value in million Euro 40 40 40 40 37 31 Equity ratio 2016 2017 2018 2019 2020 2021 59 | Investor Day | April 2022 | WashTec AG
Slide 60: Strong recovery of ROCE supports mid-term ambition
Strong recovery of ROCE supports mid-term ambition of > 25% 26 26 26 25 18 ROCE 11 2016 2017 2018 2019 2020 2021 60 | Investor Day | April 2022 | WashTec AG
Slide 61: Positive net debt position at year end
Positive net debt position at YE; steady improvement over the last 5 years in million Euro 1 5 20 18 Cash 10 12 12 Bank liabilities -14 -14 -19 -19 -4 -7 -47 -35 2017 2018 2019 2020 2021 61 | Investor Day | April 2022 | WashTec AG
Slide 62: Generous, well-funded dividend policy
Generous, 4 well-funded dividend policy Investor Day | April 2022 | WashTec AG
Slide 63: Since 2014, >90% of net income and FCF distributed
Since 2014, > 90% of net income and FCF distributed in million Euro 39 37 36 34 35 33 33 31 30 31 31 28 25 26 net income 22 23 23 22 cash flow 19 dividend 13 13 11 6 0 2014 2015 2016 2017 2018 2019 2020 2021 pandemic 63 | Investor Day | April 2022 | WashTec AG
Slide 64: Distributed on average 102% of net income and 114% of cash flow
We have distributed on average 102% of net income and 114% of cash flow in million Euro 2014 2015 2016 2017 2018 2019 2020 2021 2014-2021 Net income 13 25 31 37 34 22 13 31 205 cash flow before divident payout* 22 11 19 26 30 6 36 35 184 Dividend for the year** 23 23 28 33 33 0 31 39 209 in % of net
Slide 65: Capital allocation policy favors organic growth
Capital allocation policy favors organic growth 1st 2nd 3rd 4th Dividend Share Capital Investment distribution Acquisitions buy-backs ▪ Prudent, ▪ Generous ▪ Focus on ▪ To be disciplined dividend policy organic growth considered in approach the absence of ▪ > 90 percent of ▪ Value-adding value-creat
Slide 66: Outlook for Key Markets
Outlook for Key Markets 66 | Investor Day | April 2022 | WashTec AG
Slide 67: Growth strategies reflect different regional ambitions
Growth strategies reflect different regional ambitions Current market shares 7% 34% 4% North America Europe Asia-Pacific • Expansion into new • SmartCare X / Smartcare • Working with partner regions platform • Establish as • Tunnel, truck & bus • Green Car Care technological leader • One platform: p
Slide 68: 68 | Investor Day | April 2022 | WashTec AG
68 | Investor Day | April 2022 | WashTec AG
Slide 69: Disclaimer
Disclaimer Notes and forward-looking statemen 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