Washtec (WSU) investor relations material

Strategic priorities and market approach

• North America is identified as the most critical market, requiring a distinct, market-specific strategy due to its unique customer needs, operating models, and economic levers compared to Europe.

• The new strategy is built on five pillars: geographic expansion, service excellence, sustainability (True Green leadership), digitalization, and portfolio completion to address all relevant growth segments.

• Direct sales and service coverage will be expanded in high-volume states, increasing direct market access for equipment and consumables from 180m to 270m citizens.

• Service is positioned as a competitive advantage, with investments in training, remote monitoring, and AI-driven support to maximize uptime and customer loyalty.

• Sustainability is pursued as an economic driver, with proprietary green chemicals and potential insourcing of consumables as volume grows.

Market overview and growth opportunities

• The North American car wash market is large, growing, and structurally fragmented below a few large players, offering opportunities for a focused, full-line provider to gain share through organic growth and potential consolidation.

• US carwash market differs from Europe: speed and convenience prioritized, with subscription models and larger vehicles; industry consolidation has slowed.

• Mark VII is strong in in-bay automatic (IBA) but lacks products for other segments like tunnels and jet wash, limiting its addressable market.

• Registered light vehicles in the US are projected to increase by 14% from 2025 to 2030, with average wash frequency at 12-13 times per year.

• US and Canada carwash industry market expected to grow from $2.0bn in 2025 to $2.8bn in 2030, with a 7% CAGR.

Financial targets and operational execution

• Revenue in North America is targeted to increase by up to 50% by 2030 compared to 2025 ($85.6m in 2025), with a double-digit EBIT margin as the goal.

• Recurring revenues are expected to rise to 40%-50% of the total by 2030, stabilizing profitability and reducing volatility from equipment sales.

• CapEx in North America will remain low, at single-digit million EUR annually, with detailed business plans for each initiative and openness to partnerships.

• R&D investment will at least double, supporting insourcing of key components and accelerating innovation tailored to the North American market.

• EBIT growth is expected to be overproportional, supported by service excellence, digitalization, and portfolio expansion.