Jungheinrich AG · XETR:JUN3
Jungheinrich — H1 2019 Earnings Presentation
47 slides from Jungheinrich's earnings presentation, Aug 8, 2019
Slide 1: IR Presentation H1 2019
IR Presentation H1 2019 Hamburg, 8 August 2019
Slide 2: Agenda
AGENDA JUNGHEINRICH AT A GLANCE WORLD MATERIAL HANDLING EQUIPMENT MARKET FINANCIAL KEY FIGURES H1 2019 STRATEGIC OVERVIEW
Slide 3: Jungheinrich at a glance
1 JUNGHEINRICH AT A GLANCE Jungheinrich is one of the world’s leading solutions providers for the intralogistics sector
Slide 4: Jungheinrich at a glance
Jungheinrich at a glance ONE OF THE WORLD’S EMPLOYEES REVENUE BY REGION (%) LEADING COMPANIES 18,000 WORLDWIDE FOR THE INTRA- TOTAL €3.8 BILLION LOGISTICS SECTOR Germany Western 24 Europe NO. 2 INDEPENDENT FAMILY- IN THE SECTOR OWNED COMPANY 47 IN EUROPE Other 13 countries 16 SINGLE-BRAND FOCUS ON S
Slide 5: The Jungheinrich Group in figures (2018)
The Jungheinrich Group in figures (2018) Incoming orders Incoming orders Group revenue EBIT EBT New truck business All business fields (in € million) (in € million) (in € million) (in thousand units) (in € million) +6% +12% +11% +6% +2% 131 3,796 3,971 275 123 3,435 259 3,560 243 249 EBIT ROS EBT RO
Slide 6: Dividend continuity – dividend stable
Dividend continuity – dividend stable Objective: Distribution ratio between 25% and 30% of profit or loss 0.50 0.50 0.44 0.40 0.35 28% 29% 28% 28% 27% 2014 2015 2016 2017 2018 Dividend per preferred share Distribution ratio Figures adjusted retroactively due to the 1:3 stock split implemented on 22
Slide 7: World material handling equipment market
2 World material handling equipment market Jungheinrich is second in the sector in Europe
Slide 8: World material handling equipment market
World material handling equipment market Incoming orders in thousand units Worldwide +10% 1,538 1,395 951 2007 2017 2018 08/08/2019 8
Slide 9: Market volume by product segment 2018 vs 2007
Market volume by product segment 2018 vs 2007 Europe Worldwide 2018: 1,538 thousand units 15% (28%) (2007: 951 thousand units) 19% (20%) 66% (52%) 46% Asia The warehousing 37% 31% 54% equipment trend 2018 (18%) (66%) continued across all regions 37% 45% 2007 15% (16%) 18% 17% North America 35% (43%)
Slide 10: Market structure by product segment 2018 vs 2007
Market structure by product segment 2018 vs 2007 Europe China 15% 28% 66% 2018 19% 12% 2018 28% 9% 12% 2007 2007 60% 52% 20% 79% Europe and China: clear trend towards warehousing equipment = future growth potential for Jungheinrich Warehousing equipment Battery-powered IC engine-powered counterbalan
Slide 11: Development of the material handling equipment markets
Development of the material handling equipment markets of importance to Jungheinrich Market volume 2018 Market volume 2017 China +15% North America +4% Asia* +6% Germany +17% France +6% European market volume Italy +11% in 2018 up 27% compared to pre-crisis level (2007). UK +4% Spain +13% Poland +26
Slide 12: Current business trend H1 2019
3 CURRENT BUSINESS TREND H1 2019 Facts and figures
Slide 13: Highlights H1 2019
Highlights H1 2019 ■ Value of incoming orders exceeds €2 billion (+6%) ■ Revenue increases by 10% ■ EBT and profit or loss above previous year ■ Orders on hand up 12% on 31 December 2018; orders account for 5 months of production ■ Forecast adjusted 08/08/2019 13
Slide 14: Global material handling equipment market, H1 2019
Global material handling equipment market, H1 2019 Growth rates by regions Global market, in thousand units thereof China +3% 758 800 +2% H1 2018 H1 2019 -7% -7% -6% -16% -5% Europe West East Asia World North America Sources: WITS, SIMHEM; based on incoming orders in units, January to June 2019 vs J
Slide 15: Incoming orders
Incoming orders All business fields, in € million New truck business, in thousand units +6% -1% 2,065 67.4 67.0 1,946 H1 2018 H1 2019 H1 2018 H1 2019 08/08/2019 15
Slide 16: Production and orders on hand new truck business
Production and orders on hand new truck business Production, in thousand units Orders on hand, in € million ■ Orders account for five months of production. 0% +12% 58.9 58.8 1,015 907 H1 2018 H1 2019 31/12/2018 30/06/2019 08/08/2019 16
Slide 17: Group revenue and earnings
Group revenue and earnings Group revenue, in € million EBIT, in € million ■ All business fields and divisions – ■ Pricing pressure on the market, the start of a especially new truck business – decline in capacity utilisation in individual contribute to revenue growth. plants, and the consequential e
Slide 18: Research and development and capital expenditure
Research and development and capital expenditure R&D expenditure, in € million Capital expenditure, in € million ■ Focus: Expanding market leadership in the field of ■ Priorities in 2019: Construction of a plant for lithium- energy storage systems based on lithium-ion ion batteries, expansion of the
Slide 19: Working capital and net debt
Working capital and net debt Working Capital, in € million Net debt, in € million ■ Adjusted for lease liabilities resulting from the initial application of IFRS 16 „Leases“ in the amount of €154 million, net debt would have amounted to €144 million. The €36 million increase against the end of 2018
Slide 20: Financial services
Financial services Original value of new contracts, in € million Original value of contracts on hand, in € million 439 3,008 + 22 % 2,617 + 15 % 360 Forklifts in thousand units 161.9 181.2 30/06/2018 30/06/2019 30/06/2018 30/06/2019 08/08/2019 20
Slide 21: Employees
Employees in full time equivalents1) 17,877 18,221 + 344 +2% 7,378 Germany 7,469 ■ Sales capacity strengthened in Europe, especially in Germany, Poland and Italy. Abroad 10,499 10,752 31/12/2018 31.12.2018 30/06/2019 30.06.2019 1) Including apprentices, excluding temporary workers 08/08/2019 21
Slide 22: Strategic overview
4 STRATEGIC OVERVIEW Group strategy with clear goals
Slide 23: Market drivers in the intralogistics sector
Market drivers in the intralogistics sector E-COMMERCE THE INTRA- JUNGHEINRICH LOGISTICS IS BENEFITING ELECTRIC MARKET WILL FROM THIS MOBILITY GROW. GROWTH TREND. PURCHASING POWER GROWTH 08/08/2019 23
Slide 24: Group strategy with clear goals
Group strategy with clear goals geared towards sustainable, profitable growth THE CHARACTER OF A FAMILY BUSINESS: ORDINARY SHARES IN FAMILY HANDS. HIGH EQUITY RATIO, FINANCIAL INDEPENDENCE. ATTRACTIVE CUSTOMER INDUSTRIES. STRONG MARKET POSITION. 08/08/2019 24
Slide 25: Long-term stability through an integrated business model
Long-term stability through an integrated business model LESS CYCLICAL, NEARLY 45% OF GROUP REVENUE GENERATED WITH SERVICES. CUSTOMERS ARE PRIMARILY IN THE LESS CYCLICAL RETAIL, WHOLESALE, LOGISTICS AND FOOD INDUSTRIES. CLOSE CUSTOMER LOYALTY DUE TO HIGH LEASING RATIO (>40%)*. JUNGHEINRICH’S
Slide 26: Market drivers: electric mobility, lithium-ion milestones
Market drivers in the intralogistics sector ELECTRIC MOBILITY LITHIUM-ION TECHNOLOGY MILESTONES 2011 2018 2018 2019 First manufacturer of Series launch of 12,000 lithium-ion Series launch of series-produced truck reach truck trucks sold electric with lithium-ion battery ETV 216i (2017: 5,800) stacke
Slide 27: Market drivers: lithium-ion strategic investment
Market drivers in the intralogistics sector ELECTRIC MOBILITY LITHIUM-ION TECHNOLOGY STRATEGIC INVESTMENT JUNGHEINRICH AND TRIATHLON ESTABLISH A COMPANY FOR THE PRODUCTION AND REPROCESSING OF LITHIUM-ION BATTERY SYSTEMS (70% / 30%): JT ENERGY SYSTEMS GMBH. CAPITAL STOCK: €3.1 MILLION. OPERATIO
Slide 28: Market drivers: purchasing power growth
Market drivers in the intralogistics sector PURCHASING POWER GROWTH APAC: 2007 Asia excluding 2018 Asia excluding NEW COMPANIES IN China 16% China 13% INDIA (2012), MALAYSIA (2014) Europe Europe AND AUSTRALIA (2015). 43% 34% China China OWN SALES COMPANY 951 thou. 12% 1,538 thou. 28% IN CHINA SI
Slide 29: Market drivers: e-commerce and automation
Market drivers in the intralogistics sector E-COMMERCE DIGITAL PRODUCTS / FULL AUTOMATION MARKET LAUNCH OF HIGH- PERFORMANCE MINILOAD STC 2B1A (2018). Warehouse Logistics interface management Warehouse systems digitalisation WAREHOUSE MANAGEMENT SYSTEM “JUNGHEINRICH WMS” Fleet UPDATED IN 2018. R
Slide 30: Range of services for Logistics Systems
Range of services for “Logistics Systems” Planning and HETEROGENEOUS CUSTOMER project design STRUCTURE. CONTRACT SIZE FOR AUTOMATED After-sales Stacker SOLUTIONS GENERALLY BETWEEN services cranes €1 MILLION AND €20 MILLION. MARKET SHARE OF SYSTEM TRUCKS IN EUROPE > 40%. Conveyor systems Achiev
Slide 31: Jungheinrich: an attractive investment
Jungheinrich: an attractive investment MARKET OPPORTUNITIES MEET THE STRENGTH OF JUNGHEINRICH! 08/08/2019 31
Slide 32: Global market 2019: noticeable decline expected
Global market for material handling equipment 2019: noticeable decline expected GLOBAL Lasting and noticeable decline in global market. MARKET EUROPE Lasting and noticeable decline in our core market in Europe. +10% 1,538 ASIA Market growth on a par with the previous year possible. 1,395 951 +
Slide 33: Jungheinrich Group 2019 forecast adjusted
Jungheinrich Group 2019 forecast adjusted March 2019 August 20191) Incoming orders 4.05 to 4.20 3.80 to 4.05 Financial liabilities increase by in € billion €154 million (lease liabilities) Revenue in € billion 3.85 to 4.05 due to the initial application of IFRS 16 in the 2019 financial EBIT in € m
Slide 34: Jungheinrich: a sound investment
Jungheinrich: a sound investment Revenue in € million Revenue EBIT EBIT in € million 4000 300 Global financial and 3500 3,796 250 economic crisis 2008 / 2009 3,435 3000 200 3,085 2500 2,754 150 2,498 Jungheinrich 2000 2,270 2,290 100 2,001 2,145 2,116 ǂ 1,816 1500 1,748 1,677 cyclical 50 1000 0 500
Slide 35: Disclaimer
Disclaimer Unforeseeable developments may cause the actual business trend to differ from expectations, assumptions and estimates of the management of Jungheinrich that are reproduced in this presentation. Factors that may lead to such deviations include changes in the economic environment, within th
Slide 36: DUNGHEINRICH
DUNGHEINRICH
Slide 37: Notes
NOTES JUNGHEINRICH
Slide 38: Jungheinrich is the sector's no. 2
Global ranking of material handling equipment manufacturers 2017 revenue of forklift trucks and warehousing equipment in € billion Ranking in Europe 10.1 Jungheinrich is the sector’s no. 2 behind Kion, but in front of Toyota 5.6 3.4 Linde Mitsubishi 3.0 2.7 Still Nippon Y. 2.4 Toyota Fenwick Caterpi
Slide 39: Jungheinrich Group production sites
Jungheinrich Group production sites 08/08/2019 39
Slide 40: Jungheinrich: Broad customer base
Jungheinrich: Broad customer base Customer structure by sector (%) 17 Retail and wholesale (incl. food distribution) 13 Other sectors Logistics 13 Mechanical, automotive and electrical engineering Food industry (production) 1 8 44 Chemical industry 4 Wood, printing and paper Based on approximately 7
Slide 41: Intralogistics business fields
„Intralogistics“ business fieldsGeschäftsfelder Intralogistik ■ Development, production and sales of new forklift trucks New truck including “Logistics systems” and “Mail-order” business, focus business on direct sales Short-term ■ Hire periods: generally 1 day to 24 months ■ Targeted degree of capa
Slide 42: Logistics Systems and Mail Order continue to grow
“Logistics Systems” and “Mail Order” continue to grow Development of revenue Logistics Systems in € million New truck business ■ Large orders shape 617 €617 million 581 high prior-year basis. 441 - System trucks +32% +6% - Racks Revenue - Project business €2,305 million 2016 2017 2018 €112 million D
Slide 43: Financial Services Principles and Objectives
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 44: Jungheinrich key data (I)
Jungheinrich key data (I) in € million 2007 2015 2016 2017 2018 Incoming orders 2,120 2,817 3,220 3,560 3,971 Group revenue 2,001 2,754 3,085 3,435 3,796 thereof Germany 505 701 753 851 900 thereof abroad 1,496 2,053 2,332 2,584 2,896 EBIT 140 213 235 259 275 EBIT ROS 7.0% 7.7% 7.6% 7.5% 7.2% Capita
Slide 45: Jungheinrich key data (II)
Jungheinrich key data (II) in € million 2007 2015 2016 2017 2018 Equity ratio (Intralogistics) 40% 48% 48% 48% 46% Equity ratio (Group) 27% 31% 31% 30% 29% Net debt1 40 –75 –56 7 108 Tax ratio 41% 31% 28% 25% 29% Profit or loss 82 138 154 182 176 Employees (FTE3)) 10,178 13,962 15,010 16,248 17,877
Slide 46: Development of Jungheinrich preferred share
Development of Jungheinrich preferred share All-time high: €41.60 on 12 + 15 January 2018 €39.35 €22.84 29/12/2017 28/12/2018 Closing price Closing price JUNGHEINRICH DAX MDAX SDAX 08/08/2019 46
Slide 47: Financial calendar, general information, contact
Financial calendar Balance sheet press conference 20/03/2019 Analyst conference 20/03/2019 2019 Annual General Meeting 30/04/2019 Dividend payment 06/05/2019 Interim statement as of 31/03/2019 10/05/2019 Interim report as of 30/06/2019 08/08/2019 Interim statement as of 30/09/2019 07/11/2019 General