• Revenue up by 0.2% from €435.4m to €436.5m;
• Cost increase due to Performance Program significantly reduced to 0.3% in H2 (H1: 5,9%);
• EBIT down on prior year at €36.3m (prior year: €51.5m); EBIT margin 8.3%; EBIT adjusted for effects of Performance Program: 38.2m; EBIT margin 8.8%;
• Free cash flow lower than prior year at €15.0m (prior year: €32.3m);
• Guidance 2020: stable revenue growth with a slight increase in EBIT.

Augsburg, March 18, 2020 - Revenue was at €436.5m (prior year: €435.4m). This corresponds to an increase in revenue of €1.1m or 0.2%. The final quarter, with revenue of €127.4m (prior year: €122.7m), is the highest-revenue quarter in the company's history. Earnings before interest and taxes (EBIT) was at € 36,3m (prior year: €51.5m), adjusted for effects of Performance Program at€38.2m. This corresponds to an EBIT margin of 8.3% (prior year: 11.8%) respectively an adjusted EBIT margin of 8.8%.

Free cash flow decreased to €15.0m (prior year: €32.3m). The main reason for this, aside from the Group's weaker earnings, was a temporary increase in trade receivables at the end of the fiscal year due to the exceptionally strong sales in the final months of 2019.
Recognition of right-of-use assets in accordance with IFRS 16 in the amount of €18.7m, the €32.8m dividend payment and the lower free cash flow increased net financial debt (cash and cash equivalents less current and non-current financial liabilities) by €46.3m to €56.4m at the year-end.
The equity ratio decreased to 30.7% (prior year: 40.2%). The effect on the equity ratio from the first-time application of IFRS 16 was 2.2%.
ROCE came to 18.4%. Here too, aside from first-time application of IFRS 16 and the resulting recognition of right-of-use assets, the main reasons for this were the weak earnings and the higher NOWC mainly due to the increase in trade receivables at the end of the 2019 financial year. Adjusted for the effects of IFRS 16, ROCE was 19.8%.

"Looking at how business developed, we made the right decisions last year. We are working on increasing profitability. In particular, we have launched our Performance Program, which already showed first successes in the second half of the year and has three components. It involved short-term reductions in other operating expenses in 2019, and we are working on structural changes in human resources by the end of 2020. Finally, we have launched an Operational Excellence Program to streamline processes and cut costs in all parts of the business. This program will be with us for the long term", said Dr. Ralf Koeppe, CEO of WashTec AG.

Annual General Meeting 2020
WashTec has decided to postpone the Annual General Meeting of WashTec AG scheduled for the end of April to a later date in 2020. In our opinion, the postponement is necessary after weighing all risks, in particular in light of the general ruling of the Bavarian State Ministry of Health and Care dated March 16, 2020. The health of the stockholders, employees, service providers and guests is the company's top priority. We will inform you about the new date in due course.

Forecast for fiscal year 2020
For the fiscal year 2020, WashTec is aiming for stable revenue performance for the Group, with a slight increase in EBIT. Regarding free cash flow, the Company expects a significant increase. The effects on the outlook due to the coronavirus crisis are finally determined by various factors. At present, it is not possible to foresee over what period of time, in which divisions and to what extent there will be negative effects and to what extent these can be offset by opposing positive effects. WashTec is working on increasing profitability in order to return to a double-digit EBIT margin in the medium term.

General risk information
Any outlook is subject to uncertainties that could have a material effect on forecast revenue and earnings performance.

The annual report for fiscal year 2019 and additional information about the company can be found on: www.washtec.de.

About WashTec:
WashTec Group with its registered office in Augsburg, Germany, is the leading provider of innovative car wash solutions worldwide. The company has more than 1,800 employees and is represented with subsidiaries in the major markets of Europe, North America and Asia/Pacific. Moreover, WashTec has an extensive network of independent marketing partners through which it is present in around 80 countries worldwide.

Key figures:

€m, IFRS	2019	2018	Change in %
Revenue	436.5	435.4	0.2
Adjusted EBIT	38.2		-
Adjusted EBIT margin in %	8.8		-
EBIT	36.3	51.5	-29.5
EBIT margin in %	8.3	11.8	-
EBT	35.7	50,8	-29.7
Consolidated net income	22.3	34.0	-34.4
Earnings per share 1) (in €)	1.66	2.54	-34.4
Dividend per share (in €)	1.652)	2.45	-32,7
Net cash flow	21.8	38.2	-42.9
Free cash flow	15.0	32.3	-53.6
ROCE in %	18.4	28.5	-

 

€m, IFRS	31. Dec. 19	31. Dec. 18	Change abs.
Balance sheet total	274.9	237.2	37.7
Equity	84.5	95.4	-10.9
Equity ratio	30.7%	40.2%	-
Net financial debt	56.4	10.1	46.3
Net operating working capital 3)	96.2	82.6	13.6
Employees (31.12.)	1,874	1,870	4

1) Basis: on average 13,382,324 shares
2) Proposal to the Annual General Meeting
3) Trade receivables + inventories -trade payables - prepayments on orders



Contact:
WashTec AG
Argonstrasse 7
86153 Augsburg

Phone: +49 821 - 5584 - 0
E-Mail: [email protected]