Q1 Q3 2017 Hamburg,
Content 1. Jungheinrich at a glance 2. World material handling equipment market 3. Business model 4. Current business trend Q1 Q3 2017 5. Strategic issues and outlook
1 Jungheinrich at a glance Jungheinrich had a successful year in 2016
Jungheinrich at a glance Independent family-owned company Leading intralogistics services & solutions provider with manufacturing operations No. 2 in the sector in Europe Focus on direct sales Singlebrand strategy Key figures in 2016: Incoming orders: 3,220 million, +14% Net sales: 3,085 million, +12% EBIT: 235 million, +10% Net income: 154 million, +12% Net sales Intralogistics segment Consolidated net sales by region New truck business 56% 27% 17% After-sales service Short-term hire and used equipment Germany 24% Other countries 13% 14% Eastern Europe 49% Western Europe 4
Why Jungheinrich? Global customers in attractive growth industries Integrated business model with high service share Strong market position in materials handling equipment: no. 2 in Europe Clear corporate strategy geared to sustainable, profitable growth Financial independence due to sound balance sheet Stable shareholder structure: ordinary shares in family ownership Continuous dividend payments: distribution ratio between 25% and 30% of earnings after tax 5
The Jungheinrich business model 6
2 World material handling equipment market Jungheinrich is the sector s no. 2 in Europe
World material handling equipment market market volume Incoming orders in thousand units Europe +13% 421 Worldwide +8% 373 +2% +24% +7% 1,182 Asia +7% 411 444 1,100-7% 414 +67% 266 North America 951 +2% +7% 241 235 +26% 2007 2015 2016 191 2007 2016 2015 2016 2007 Sources: WITS, SIMHEM. 8
World material handling equipment market Breakdown of volume by region 2007 = 951 thousand units +24% 2016 = 1,182 thousand units thereof Eastern Europe Europe 43% 8% 9% Rest of world Central/South America 5% Australia/Africa 4% Asia 28% thereof China 12% North America 20% thereof Eastern Europe 5% Rest of world Central/South America 3% Australia/Africa 3% Europe 36% 6% North America 20% Asia 38% thereof China 23% Sources: WITS, SIMHEM; based on incoming orders in units. 9
World material handling equipment market Breakdown of volume by product segment Worldwide 2016: 1,182 thousand units (2007: 951 thousand units) Europe 65% (52%) 16% (28%) 19% (20%) 2007 (37%) (45%) 45% 38% Asia 25% (18%) 17% (16%) 58% (66%) The trend towards warehousing equipment continued across all regions (18%) 17% North America Warehousing Equipment Battery-powered counterbalanced trucks 50% (40%) 32% (43%) 18% (17%) Internal combustion engine-powered counterbalanced trucks Sources: WITS, SIMHEM; based on incoming orders in units. 10
World material handling equipment market Market structure comparison broken down by product segment in 2016 (2007) Europe China 2007 (28%) (52%) (20%) 65% 16% 19% (12%) (9%) 2007 12% (79%) 19% 69% Europe and China: Trend towards Warehousing Equipment = future growth potential for Jungheinrich Warehousing Equipment Battery-powered counterbalanced trucks Internal combustion enginepowered counterbalanced trucks Source: WITS; based on incoming orders in units. 11
3 Business model Jungheinrich is far more than just a Forklift Manufacturer
Business fields Intralogistics New truck business Development, production and sales of new forklift trucks including logistics systems and mail-order business, focus on direct sales Short-term hire Hire periods: generally 1 day to 24 months Targeted degree of capacity utilisation 70% to 80% Ø-Inventory 2016 = 53 thousand trucks (+18% year on year) Used equipment After-sales service Marketing of used equipment (leasing, short-term hire and trade-ins) Professional reconditioning of forklift trucks in the Dresden used equipment centre 6,500 employees in the global aftersales organisation, thereof 4,600 aftersales service engineers 13
Divisions: Logistics Systems and mail-order business Net sales in 2016 New truck business Net sales 1,763 million Logistics Systems 441 million System trucks Racking Project business 68 million mail-order business Development of net sales in million 68 42 50 +14% 57 +19% +19% 2013 2014 2015 2016 14
The variety of our solutions Maintenance & service Material flow analysis Planning and project design Realisation and system integration Forklift trucks (automated) Assistance systems CUSTOMER Racking and storage equipment Radio data Shuttle systems Jungheinrich WMS Conveyor systems Stacker cranes 15
Digital solutions ISM Online StartSafe New modules: Battery management module Call4Service Maintanance control module Access control module >60,000 trucks in ISM Online, available in 20 European countries. 16
Customer structure by sector 13% Retail and wholesale (incl. food distribution) 12% Logistics 45% CUSTOMER 8% Mechanical, automotive and electrical engineering Food industry (Production) 16% 4% 2% Chemical industry Timber, paper and print industries Other industry sectors Based on incoming orders in units. 17
Financial Services Principles and objectives Business policy Sales policy Service function for Jungheinrich sales division Substantial Financial Services profits are stated in sales division New truck business/after-sales services/used equipment Promotion and expansion of new truck business and after-sales services Principle: Every financial service agreement to cover full service and maintenance Permanent customer retention Flexible, customised contracts Matching refinancing (term and interest) Risk management Balance sheet Regular creditworthiness checks Quarterly assessment of contractual/residual value risks Transparency and process reliability via Group database Full disclosure on Jungheinrich s consolidated balance sheet 18
4 Current business trend Q1 Q3 2017
Jungheinrich highlights Q1 Q3 2017 Forecast for the whole of 2017 confirmed Double-digit increase in incoming orders (in units), production and net sales 43% increase in net sales in Logistics Systems business EBIT up 12% to 184 million Net income exceeds last year s figure by 17% 20
World material handling equipment market, Jan. to Sept. 2017 Growth rates by region World market in thousand units Europe +11% 876.7 1,024.9 Western Europe +9% Q1-Q3 2016 Q1-Q3 2017 Eastern Europe thereof Russia +23% +23% Asia thereof China +41% +29% North America +5% +8% World +17% +18% Sources: WITS, SIMHEM; based on incoming orders in units, January to September 2017 vs. January to September 2016. 21
Incoming orders Of all business fields, in million New truck business, in thousand units Almost a quarter of the increase is due to higher demand for logistics system solutions 2,407 +8% 2,596 82.4 +12% 92.1 Q1-Q3 2016 Q1-Q3 2017 Q1-Q3 2016 Q1-Q3 2017 22
Production and orders on hand New truck business Production in thousand units Orders on hand, in million The order reach is more than four months 78.9 +12% 88.3 610 +16% 709 Q1-Q3 2016 Q1-Q3 2017 31/12/2016 30/09/2017 23
Net sales and earnings 1 Consolidated net sales, in million Net sales from new truck business up 19% (= 22million), more than 50 % ot this figure is attributable to Logistics Systems After-sales services up 8% and financial services business up 12% Last year benefited from the non-recurring effect resulting from the transfer of the shortterm hire equipment from Jungheinrich's Chinese sales company to the joint venture with Heli 2,461 2,185 +13% EBIT 1, in million 9M 2016 EBIT benefited from the positive non-recurring effect of 4.7 million resulting from the deconsolidation of UK-based company Boss Manufacturing Ltd. (Q2 2016) 164.3 +12% 183.8 EBIT ROS 7.5% 7.5% Q1-Q3 2016 Q1-Q3 2017 Q1-Q3 2016 Q1-Q3 2017 1 Comparative figures for 2016 have been adjusted in line with IFRS 3 due to the classification and valuation of customer leases as part of the final purchase price allocation for NTP Forklifts Australia (NTP), acquired in November 2015. 24
Workforce trend in full-time equivalents (FTE) 1 15,010 +787 +5% 15,797 6,511 Germany 6,772 Most of the expansion is attributable to the sales companies, focusing on Europe 8,499 International 9,025 31/12/2016 30/09/2017 1 Including apprentices, excluding temporary workers. 25
5 Strategic issues and outlook Jungheinrich is on course!
Jungheinrich 4.0 2020: 4 billion in net sales 4/7 Growth strategy 2016 net sales: > 3 bn As we strive to achieve our net sales goal of 4 billion by the 2020 financial year, we aim to grow by 7% per annum. Growth strategy: 4/7 7% p.a. Industry 4.0 Intralogistics 4.0 27
The Jungheinrich Group s growth strategy Core business Europe Mail-order business Focal points of the Group s strategy APAC s growth markets focusing on China Goal 2020: ~ 4 billion net sales Counterbalanced trucks product segment Logistics systems business 28
World material handling equipment market Assumptions regarding market development in 2017 unchanged* World Europe Asia +13% 421 373 411 +7% 444 414 266 North America +2% 241 235 191 2016 2015 2007 +7% 1,182 1,100 951 thereof Eastern Europe +19% thereof Eastern Europe -7% thereof China +14% thereof China +13% * See interim report published 8 August 2017 World: Jungheinrich anticipates that the material handling equipment market will grow significantly in 2017. Europe: Market volume will continue to expand significantly. If the strong growth in Eastern Europe persists, demand may even rise by by at least a high single-digit percentage. Asia: Double-digit market growth is materialising, although the current development, i.e. the substantial rise in demand for IC engine-powered counterbalanced trucks, should normalise. North America: The robust demand for electric material handling equipment may well continue. The recovery of IC engine-powered counterbalanced trucks, which has become solid, should also contribute to continued positive market growth. Sources: WITS, SIMHEM; based on incoming orders in units. 29
Forecast 2017 Forecast updated in August confirmed Incoming orders in billion Net sales in billion EBIT in million EBIT ROS in % EBT in million EBT ROS in % August 2017 March 2017 3.45-3.55 3.4-3.5 3.35-3.45 3.3-3.4 At the upper end of the range of 250 to 260 Forecast 250-260 At previous year s level (7.6) At previous year s level (7.6) 235-245 230-245 At previous year s level (7.0) At previous year s level (7.0) 30
Disclaimer Since developments cannot be foreseen, the actual business trend may deviate from the expectations, assumptions and estimates made by Jungheinrich company management in this presentation. Factors that may lead to such deviations include changes in the economic environment, changes within the material handling equipment sector as well as exchange and interest-rate fluctuations. Therefore, no responsibility is taken for forwardlooking statements made in this presentation. 31
Appendix
Development of the material handling equipment markets of importance to Jungheinrich Market volume in 2016 Market volume in 2015 China +14% North America North +2% Asia (without China) Asia -2% Germany France Italy UK Spain Poland Netherlands Russia Australia Turkey +15% +26% +1% +17% +10% +18% +37% +2% -3% +9% European market volume up 2% in 2016 compared to pre-crisis levels (2007) 0 50,000 50.000 100,000 100.000 150,000 150.000 200,000 200.000 250,000 250.000 300,000 300.000 units 34
Global ranking of material handling equipment manufacturers 2016 net sales of forklift trucks and warehouse technology in billion 8,3 8.3 5,2 5.2 Ranking in Europe Jungheinrich is the sector s no. 2 behind Kion, but in front of Toyota 3,1 3.1 2.7 2,7 2.6 2,6 Mitsubishi Linde Nippon Y. Still 2.2 2,2 Caterpillar Toyota Fenwick Rocla 1,7 Raymond OM Still Nissan Hyster 1.7 BT Industr. Baoli TCM Crown Yale 1.1 1,1 Cesab Voltas 0,9 Atlet Hamech Utilev 0.9 Toyota 1 Kion Mitsubishi Nichiyu inkl. Jungheinrich Crown1 Hyster-Yale Kalmar Manitou Anhui Heli Unicarriers1, 2 1 Financial year from April March. 2 Mitsubishi-Unicarriers sales figures from Modern Materials Handling. No published sales figures from Mitsubishi. Source: Logistik Journal, 10/2017. 35
Jungheinrich Group production sites 36
Jungheinrich key data (I) in million 2007 2013 2014 2015 2016 Incoming orders 2,120 2,357 2,535 2,817 3,220 Consolidated net sales 2,001 2,290 2,498 2,754 3,085 - Germany 505 613 655 701 753 - international 1,496 1,677 1,843 2,053 2,332 EBIT 140 172 193 213 235 EBIT ROS 7.0% 7.5% 7.7% 7.7% 7.6% Capital employed 1 578 920 1,047 1,187 1,318 ROCE 2 24.1% 18.7% 18.4% 17.9% 17.8% R&D expenditures 41 45 50 55 62 Capital expenditures 3 52 91 84 87 59 1 Shareholders equity + Financial liabilities Liquid assets and securities, from 2012 onwards: Shareholders equity + Financial liabilities Liquid assets and securities + provisions for pensions and long-term personnel obligations. 2 Employed interest-bearing capital x 100. 3 Tangible and intangible assets without capitalised development expenditures. 37
Jungheinrich key data (II) In million 2007 2013 2014 2015 2016 Equity ratio (Intralogistics) 40% 47% 46% 48% 48% Equity ratio (Group) 27% 30% 30% 31% 31% Net debt 1 40-154 -132-75 -56 Tax ratio 41% 29% 28% 31% 28% Net income 82 107 126 138 154 Employees (FTE) 10,178 11,840 12,549 13,962 15,010 - Germany 4,761 5,356 5,638 6,078 6,511 - international 5,417 6,484 6,911 7,884 8,499 Dividend per preferred 0.19 0.29 0.35 0.40 0.44 share 2 1 Net debt = Financial liabilities - Liquid assets and securities. 2 Figures are retroactively restated due to stock split (1:3) on June 22, 2016. 38
Financial calendar Interim statement as of 30/09/2017 07/11/2017 Balance sheet press conference 07/03/2018 Analyst conference 07/03/2018 2018 Annual General Meeting 17/04/2018 Dividend payment 20704/2018 Interim statement as of 31/03/2018 04/05/2018 Interim report as of 30/06/2018 09/08/2018 Interim statement as of 30/09/2018 06/11/2018 General Informationen Subscribed capital: 102 million subdivided into 54 million non-par-value ordinary shares 48 million non-par-value preferred shares (listed) Securities identification numbers (Preferred shares): ISIN: DE0006219934 WKN: 621 993 Stock exchanges: Frankfurt and Hamburg and all other German stock exchanges Segment: Branch: Stock index: Prime Standard Industry MDAX Ticker: Reuters JUNG_p.de Bloomberg JUN3 GR Contact Andrea Bleesen Head of Investor Relations Jungheinrich Aktiengesellschaft Friedrich-Ebert-Damm 129 22047 Hamburg Tel +49 40 6948-3407 Fax +49 40 6948-753407 andrea.bleesen@jungheinrich.de www.jungheinrich.com