OVERVIEW          BUSINESS         SHAREHOLDER & MGMT          FINANCIALS         WHY TO INVEST          DOWNLOADS          

The Business 

WashTec is the world’s leading supplier of innovative solutions for all aspects of vehicle washing. The company’s product range comprises all types of vehicle wash equipment as well as the associated peripheral devices, wash chemicals and water reclaim systems. WashTec additionally offers comprehensive service packages spanning the entire product life cycle: equipment maintenance, financing arrangements and operator management. They operate around 40,000 installed washing facilities worldwide, where more than two million vehicles get washed every day. WashTec is represented with subsidiaries in the core markets of Europe and the U.S as well as China. Due to their proximity to the market, they are tuned to the customers’ needs and develop their products accordingly. Their aim is to create a convenient car wash experience helped by digital options accessible by smartphones.

Source: Company Data

WashTec’s global business is divided into three geographical regions:

  • Europe: pools the activities of the WashTec group in Western and Eastern Europe including Russia.

  • North America: comprises the activities in the USA and Canada.

  • Asia Pacific: primarily encompasses the business performance of the Australian and Chinese subsidiaries.


In all these geographic regions WashTec offers the following products: Equipment and Service, Chemicals and Operations business and others.

 

The main sales driver in all geographic regions is the Equipment and Service product range.

Overview by business

Europe


The wash equipment market in Europe is one of the most developed vehicle wash markets in the world. WashTec’s customers in Europe are predominately operators of filling stations that offer on-site carwashes. These customers include multinational petroleum companies, retailers and individual filling station operators as well as chains. Additional key customer groups consist of car-wash operators, supermarket chains, car dealerships and repair shops. The competition in Europe is intense and limited to a small number of manufacturers.

Source: Company Data

Overview by product

QUICK FACTS

Investment Score

STOCKS

Equipment and Service


The majority of equipment production takes place in WashTec’s headquarters in Augsburg, the subsidiaries in Denver, Colorado (USA) and Shanghai, China produce carwash equipment primarily for the North American and Asian Market respectively. The company’s subsidiary in the Czech Republic manufactures equipment and components for final assembly in Germany.


All products are maintained at the customer’s place of business, therefore the average service life for carwash equipment is seven to ten years. The equipment will thereafter be professionally disassembled and either refurbished or recycled. The Equipment and Services division includes roll-over/self-service wash equipment, wash tunnels, water reclaim systems, maintenance and service as well as digital solutions.

Source: Company Data

Chemicals


The wash chemical products sold by AUWA (AUWA-Chemie GmbH) are developed in laboratories in Germany and Sweden. The bulk of wash chemical products are high-concentration products that will be automatically diluted and apportioned in the wash equipment. This technique saves weight, packaging and therefore transport costs. The company uses high-quality ingredients and is prioritizing the conservation of scarce resources.


Included in the Chemicals division are detergents, care products and special products.

Operations business and others


This is the smallest division of WashTec where they offer Carwash Management and Financial Services (financing and leasing solutions).


WashTec Carwash Management provides a range of services on behalf of and for the account of its customers, up to and including the operation of carwashes. Additionally, other services such as profitability and location analyses. The WashTec Financial Services mediates financing agreements for WashTec products on behalf of customers of the WashTec group.

Source: Company Data

WashTec in Europe showed growth in the past. Since 2014, sales grew on average by 5.18% yoy (CAGR 2014-2019).


In terms of margins, the Europe segment has been able to post the highest adjusted EBI margins of the entire group. In fact, average EBIT margins have been in the range of some 12%.


North America


Next to Europe, the US wash equipment market is very developed. Key customers in North America are independent small or medium-size car wash chains. The share of wash tunnels relative to gantry carwashes and growth in this product segment are above the global average.


Since 2014, the sales in this geographic region have nearly doubled as they grew on average by 10.41% yoy (CAGR 2014-2019).


In terms of margins, the American segments experienced a drop in 2018, which is largely contributed to higher costs due to the intensification of sales and service activities as well as the loss of a chemicals contract with a major customer.


Asia Pacific


The Chinese market for car washes is dominated by hand washes because of the ongoing low cost of labour. The share of automated carwashes will however increase, because of the rising wage levels, the growing number of cars combined with greater environmental awareness. Since 2018, WashTec has its own assembly and procurement location near Shanghai.

On the Australian market, the major American and European manufacturers are in direct competition.


On average the sales in the Asia Pacific segment grew by 5.87% yoy (CAGR 2014-2019), mostly due to the good revenue performance in China. According to WashTec the negative EBIT margin development is mostly due to the impacts of the Australian market, where they had a loss of a major customer and high cost of organizational restructuring.

Source: Company Data

News

MiFID II

Partner

  • Facebook
  • Twitter
  • YouTube
  • Tumblr Social Icon

COPYRIGHT © 2020 AlsterResearch