Jungheinrich AG · XETR:JUN3
Jungheinrich — H1 2018 Earnings Presentation
44 slides from Jungheinrich's earnings presentation, Sep 24, 2018
Slide 1: Investor Relations Presentation H1 2018
Investor Relations Presentation H1 2018 Hamburg, 24 September 2018
Slide 2: Content
Content 1. Jungheinrich at a glance 2. World material handling equipment market 3. Business model 4. Business trend H1 2018 5. Strategic issues and outlook
Slide 3: Jungheinrich at a glance
1 Jungheinrich at a glance Facts and figures
Slide 4: Jungheinrich at a glance
Jungheinrich at a glance ONE OF THE WORLD’S INDEPENDENT LEADING COMPANIES REVENUE FAMILY-OWNED FOR THE INTRA- €3.44 BILLION LOGISTICS SECTOR COMPANY NO. 2 INCOMING EMPLOYEES IN THE SECTOR ORDERS >16,000 IN EUROPE €3.56 BILLION SINGLE-BRAND FOCUS ON EBIT STRATEGY DIRECT SALES €259 MILLION 4
Slide 5: Business fields – regions – customer structure
Business fields – regions – customer structure Revenue intralogistics segment Group revenue by region 26% After-sales services Germany 25% New truck Western business 58% 47% Europe 16% Short-term rental Other countries 12% and used equipment 16% Eastern Europe Customer structure by sector 13% Retail
Slide 6: Reasons to invest in Jungheinrich
Reasons to invest in Jungheinrich Global customer base in attractive growth sectors Integrated business model with large service ratio Strong market position in material handling equipment: number 2 in Europe Clear corporate strategy geared to sustainable, profitable growth Financially independent d
Slide 7: The Jungheinrich business model
The Jungheinrich business model 7
Slide 8: Dividend
Dividend Objective: Payout ratio of between 25% and 30% of profit or loss 0.50 0.44 0.40 0.35 0.29 28% 29% 28% 26% 27% 2013 2014 2015 2016 2017 Dividend per preferred share in € Payout ratio Figures are retroactively restated due to stock split (1:3) on 22 June 2016 8
Slide 9: World material handling equipment market
2 World material handling equipment market Jungheinrich is second in the sector in Europe
Slide 10: Market development
Market development Incoming orders in thousand units Europe +12% 470 +18% +2% 421 +14% 1,395 411 Asia +28% 568 +67% 444 +114% 1,182 266 North America +11% 267 +26% 241 +40% 951 191 2007 2016 2017 2017 2007 2016 2017 2007 Sources: WITS, SIMHEM 10
Slide 11: Breakdown of market volume by region
Breakdown of market volume by region 2007 = 951 thousand units + 47% 2017 = 1,395 thousand units Asia Asia 41% 28% Europe Europe 43% thereof China 34% 12% thereof China 27% North America thereof 6% 8% 20% Eastern Europe North 9% 6% America thereof 19% Eastern Europe Rest of world Central/South Ameri
Slide 12: Breakdown of volume by product segment
Breakdown of volume by product segment Europe Worldwide 2017: 1,395 thousand units 15% (28%) (2007: 951 thousand units) 65% 20% (52%) (20%) 44% 39% Asia The trend towards 27% warehousing (18%) 58% equipment 2007 (66%) continued across 15% 37% 45% (16%) all regions 17% North America 18% 34% 48% (43%)
Slide 13: Market structure comparison by product segment
Market structure comparison broken down by product segment in 2017 (2007) Europe China 15% 23% 65% 12% 65% 20% 2007 (9%) (28%) (12%) (52%) (79%) (20%) 2007 Europe and China: clear trend towards warehousing equipment = future growth potential for Jungheinrich Warehousing Battery-powered counter- Inte
Slide 14: Development of material handling equipment markets of importance
Development of the material handling equipment markets of importance to Jungheinrich Market volume in 2017 Market volume in 2016 China +39% North America North… +11% Asia… Asia (excl. China) +10% Germany +7% France +14% Italy +9% UK <1% Spain +17% European market volume up 14% in Poland +29% 2017 co
Slide 15: Business model
3 Business model Jungheinrich is far more than just a forklift manufacturer 15
Slide 16: Intralogistics business fields
„Intralogistics“ business fields New truck ■ Development, production and sales of new forklift trucks business including “Logistics systems” and “Mail-order” business, focus on direct sales Short-term ■ Hire periods: generally 1 day to 24 months ■ Targeted degree of capacity utilisation >80% rental
Slide 17: Logistics Systems / Mail Order Business: Revenue in 2017
“Logistics Systems” / “Mail Order” Business: Revenue in 2017 New truck business Logistics Systems Development of revenue in € million revenue €2,099 million 581 441 381 €581 million +32% - System trucks +16% - Racking - Project business 2015 2016 2017 €84 million Development of revenue Mail Order in
Slide 18: The variety of our solutions
The variety of our solutions Material flow Maintenance analysis Planning and & service project design Realisation and Forklift trucks system (automated) integration Racking and Assistance systems CUSTOMER storage equipment Shuttle Radio data systems Jungheinrich Conveyor Stacker cranes WMS systems 1
Slide 19: Digital solutions
Digital solutions ISM Online StartSafe New modules: Call4Service Battery management module Maintanance control module Access control module Almost 80,000 trucks in ISM Online, available in 21 European countries. 19
Slide 20: Financial services
Financial services Principles and objectives Service function for Jungheinrich sales division Business Substantial financial services profits are stated in sales division policy New truck business/after-sales services/used equipment Promotion and expansion of new truck business and after-sal
Slide 21: Current business trend H1 2018
4 Current business trend H1 2018 Jungheinrich is one of the world’s leading manufacturers and service providers for the intralogistics sector
Slide 22: Jungheinrich highlights H1 2018
Jungheinrich highlights H1 2018 ■ Highs for incoming orders (value), revenue and EBIT ■ Incoming orders at almost €2 billion ■ Again significant increase in research and development expenditures ■ Orders on hand up 30% compared to 31 December 2017; orders account for five months of production ■ Fore
Slide 23: Global material handling equipment market, January to June 2018
Global material handling equipment market, January to June 2018 Growth rates by region Global market, in thousand units 800 693 Europe +13% West +12% H1 2017 H1 2018 East +24% Asia +18% thereof China +23% North America +13% World +15% Sources: WITS, SIMHEM; based on incoming orders in units, January
Slide 24: Incoming orders
Incoming orders For all business fields, in € million New truck business, in thousand units ■ Just over one quarter of the increase due to higher demand for logistics systems solutions +11% +6% 67.4 1,946 63.3 1,750 H1 2017 H1 2018 H1 2017 H1 2018 24
Slide 25: Production and orders on hand
Production and orders on hand New truck business Production, in thousand units Orders on hand, in € million ■ Orders account for five months of production. +2% +30% 897 58.9 57.6 692 H1 2017 H1 2018 31/12/2017 30/06/2018 25
Slide 26: Revenue and earnings
Revenue and earnings Group revenue, in € million EBIT, in € million ■ “Logistics Systems” share of revenue: 15% ■ In addition to staffing costs increasing ■ Short-term rental and used equipment significantly, raw materials prices exceeding increases by 10%, after-sales services expectations and the
Slide 27: Research and development and capital expenditure
Research and development and capital expenditure R&D expenditure, in € million Capital expenditure, in € million ■ Focus: partial and full automation of trucks, lithium-ion technology, greater product variety +14% 41 +46% 41 36 28 Capitalisation ratio 27% 29% H1 2017 H1 2018 H1 2017 H1 2018 27
Slide 28: Working capital and net debt
Working capital and net debt Working capital, in € million Net debt, in € million Net debt H1 2018 due to: ■ increase in working capital ■ expansion of the short-term rental fleet ■ purchase price payments for acquisitions of companies 813 12 708 -145 as a percentage of revenue 20% 22% 30/06/2017 30
Slide 29: Financial services
Financial services Original value of new contracts, Original value of contracts on hand, in € million in € million +7% +12% 360 2,617 337 2,342 Forklifts in thousand units 142.3 161.9 H1 2017 H1 2018 30/06/2017 30/06/2018 29
Slide 30: Employees
Employees (full-time equivalent)1 17,293 16,248 ■ Expansion focus: Europe and South America Germany 7,164 6,962 ■ 25% of the new employees work at the new sales companies in Colombia, +1,045 Ecuador and Peru. +6% ■ Customer service organisation Abroad 10,129 expanded by 325 employees, 9,286 equivale
Slide 31: Strategic issues and outlook
5 Strategic issues and outlook Sustainable growth strategy with clear targets
Slide 32: 4/7 Growth strategy
4/7 Growth strategy 2020: As we strive to achieve our €4 €4 billion bn in revenue goal of €4 billion by the net sales revenue 2020 financial year, we aim to grow by 7% per annum. With the developments in 2017, the Group is on track to achieve its 2017 targets for 2020. revenue: >€3.4 bn Growth Growt
Slide 33: Goal 2020
The Jungheinrich Group’s growth strategy Goal 2020 €4 billion in revenue 33
Slide 34: Global material handling equipment market forecast revised
Global material handling equipment market Forecast for global and European growth in 2018 revised World +18% 1,395 1,182 951 Europe +12% 470 thereof Eastern Europe +20% 421 thereof Eastern Europe –7% 411 2018 growth >10% for material Asia handling equipment market, +28% 568 thereof China +39% both
Slide 35: Jungheinrich Group 2018 forecast
Jungheinrich Group 2018 forecast March 2018 August 2018 Incoming orders in € 3.75 to 3.85 Upper end of range billion Revenue in € billion 3.6 to 3.7 Upper end of range EBIT in € million 270 to 280 EBIT ROS On a par with previous year (7.5%) EBT in € million 250 to 260 EBT ROS On a par with previous
Slide 36: Disclaimer
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, within the mate
Slide 37: DUNGHEINRICH
DUNGHEINRICH
Slide 38: Appendix
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Slide 39: Jungheinrich is the second in the sector
Global ranking of material handling equipment manufacturers 2016 revenue from forklift trucks and warehousing equipment in € billion Ranking in Europe 8,3 8.3 Jungheinrich is the second in the sector behind Kion, in front 5,2 5.2 of Toyota 3,1 3.1 Mitsubishi 2,7 2.7 2,6 Linde Nippon Y. 2.6 2,2 2.2 S
Slide 40: Jungheinrich Group production sites
Jungheinrich Group production sites 40
Slide 41: Jungheinrich key data (I)
Jungheinrich key data (I) in € million 2007 2014 2015 2016 2017 Incoming orders 2,120 2,535 2,817 3,220 3,560 Revenue 2,001 2,498 2,754 3,085 3,435 - Germany 505 655 701 753 851 - abroad 1,496 1,843 2,053 2,332 2,584 EBIT 140 193 213 235 259 EBIT ROS 7.0% 7.7% 7.7% 7.6% 7.5% Capital employed1 578 1,
Slide 42: Jungheinrich key data (II)
Jungheinrich key data (II) in € million 2007 2014 2015 2016 2017 Equity ratio (Intralogistics) 40% 46% 48% 48% 48% Equity ratio (Group) 27% 30% 31% 31% 30% Net debt1 40 -132 -75 -56 7 Tax ratio 41% 28% 31% 28% 25% Profit or loss 82 126 138 154 182 Employees (FTE) 10,178 12,549 13,962 15,010 16,248 -
Slide 43: Share price development
Share price development All-time high: €40.63 on 2 October 2017 €40.63 02/10/2017 Share price in 2017 €39.35 All-time high 41 29/12/2017 Closing price 40 39 38 37 36 35 34 33 32 31 30 29 28 27 €27.26 26 30/12/2016 25 Closing price 1.Q1 Quartal 4. Quartal 2017 20172017 2. Q2 Quartal 2017 2017 3. Q3 Q
Slide 44: Financial calendar, general information, contact
Financial calendar Balance sheet press conference 07/03/2018 Analyst conference 07/03/2018 2018 Annual General Meeting 17/04/2018 Dividend payment 20/04/2018 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