Jungheinrich AG · XETR:JUN3
Jungheinrich — FY2017 Earnings Presentation
47 slides from Jungheinrich's earnings presentation, Mar 7, 2018
Slide 1: Investor Relations Presentation FY 2017
Investor Relations Presentation FY 2017 Hamburg, 7th March 2018
Slide 2: Content
Content 1. Jungheinrich at a glance 2. World material handling equipment market 3. Business model 4. Business trend FY 2017 5. Strategic issues and outlook
Slide 3: Jungheinrich at a glance
1 Jungheinrich at a glance 2017 was another successful year for Jungheinrich with solid growth
Slide 4: Jungheinrich at a glance
Jungheinrich at a glance ONE OF THE WORLD’S INDEPENDENT LEADING COMPANIES NET SALES 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 Net sales intralogistics segment Consolidated net sales 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
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 Dividend +14% Objective: Payout ratio of between 25% and 30% of net income 0.50 0.44 Proposal 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 the sector’s no. 2 in Europe
Slide 10: Market development
Market development Europe Incoming orders in thousand units +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: Business fields Intralogistics
Business fields „Intralogistics“ 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% hire ■ Ø-In
Slide 17: Logistics Systems / Mail Order Business: net sales in 2017
Logistics Systems Logistics Systems / Mail Order Business: grows by >30% and net sales in 2017 Mail Order by +24% New truck business Development of net sales in Logistics Systems € million Net sales €2,099 million 581 441 381 €581 million +32% - System trucks +16% - Racking - Project business 2015 2
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 FY 2017
4 Current business trend FY 2017 Jungheinrich is one of the world’s leading manufacturers and service providers for the intralogistics sector
Slide 22: 2017 highlights
2017 highlights Incoming orders (value) Market share in and net sales: Europe stable at 21.5% up 11% Largest truck order in company history: Net income: >1,000 forklift trucks with €182 million +18% lithium-ion technology >120,000 trucks produced Global sales and service network expanded: New compan
Slide 23: Incoming orders
Incoming orders Incoming orders double-digit increase All business fields, in € million New truck business, in thousand units ■ About a quarter of the increase is due to ■ Stable market share in Europe with 21.5% higher demand for logistics system solutions +11% 3,560 123 +13% 3,220 109 2016 2017 20
Slide 24: Production and orders on hand
Production and orders on hand Production New truck business 120 thousand units Production, in thousand units Orders on hand, in € million ■ The rise was primarily due to increases in ■ The order reach is four months warehousing equipment units +13% 120 +13% 692 610 106 2016 2017 31/12/2016 31/12/201
Slide 25: Net sales
Net sales Consolidated net sales hit record high Consolidated net sales, in € million ■ Net sales from new truck business up 19% +11% (= €336 million), more than 40% of this figure 3,435 is attributable to Logistics Systems 3,085 ■ After-sales services up 8% ■ Considerable net sales increases, espec
Slide 26: Earnings
Earnings All results show double-digit growth EBIT, in € million EBT, in € million +10% 259 +13% 243 1 235 216 EBIT ROS EBT ROS 7.6% 7.5% 7.0% 7.1% 2016 2017 2016 2017 Net income, in € million Earnings per preferred share, in € +18% 182 +18% 154 1.80 1.52 2016 2017 2016 2017 1 EBIT reflects the posi
Slide 27: Research & development and capital expenditures
Research & development R&D increased and capital expenditures considerably R&D expenditures, in € million Capital expenditures, in € million ■ Focus: partial and full automation of trucks, ■ Focal points in 2017 included: expanding the lithium-ion technology, greater product variety spare parts cent
Slide 28: Cash flows
Cash flow from operating activities characterised Cash flows by large additions to short-term rental fleet and financial services Cash flows from operating activities, Cash flows from investing activities, in € million in € million ■ 2017 includes approx. €30 million higher capital expenditure in pr
Slide 29: Net debt
Net debt Low net debt in € million of €7 million 7 ■ Principally the growth-related increase in working capital and the expansion of the short-term -56 rental fleet have led to a low net debt 31/12/2016 31/12/2017 Net debt = financial liabilities – cash and cash equivalents and securities 29
Slide 30: Working capital and ROCE
Working capital and ROCE Working capital Relation to net sales continued to improve Working capital, in € million Capital employed, in € million 1,497 735 666 1,318 as a percentage ROCE1 of net sales 17.8% 17.3% 21.6% 21.4% 31/12/2016 31/12/2017 31/12/2016 31/12/2017 1 ROCE = EBIT/capital employed (
Slide 31: Shareholders' equity and equity ratio
Shareholders’ equity and equity ratio Solid financial status and capital structure Group equity ratio, in % ■ The positive earnings trend in the year under review was a major influential 31 30 factor regarding the €130 million rise in equity 31/12/2016 31/12/2017 Shareholders’ equity, in € million E
Slide 32: Financial Services
Financial Services Contracts on hand >150 thousand trucks ■ 42% of new trucks are marketed via Original value of new contracts, financial services agreements (prior in € million year: 40%) ■ Financial services contracts secure +19% 719 long-term customer retention 603 2016 2017 Number of forklifts u
Slide 33: Workforce trend
Workforce trend in full-time equivalents (FTE)1 Employees Number >16,000 + 1,238 16,248 15,010 +8% ■ In Europe, highest increase in Germany 6,962 employees in sales companies in 6,511 Germany, Poland, Italy, UK and France ■ Outside of Europe, personnel was increased in Brazilian sales ■ After-sales
Slide 34: Strategic issues and outlook
5 Strategic issues and outlook Jungheinrich is on course!
Slide 35: Growth strategy 4/7
4/7 Growth strategy 2020: As we strive to achieve our net €4 €4 billion bn in sales goal of €4 billion by the 2020 net sales 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. net sales: >€3.4 bn Growth Growth st
Slide 36: Goal 2020
The Jungheinrich Group’s growth strategy Goal 2020 4 € billion in net sales 36
Slide 37: Further market increase expected for 2018
World material handling equipment market Further market increase expected for 2018 World +18% 1,395 1,182 In light of the positive economic 951 indicators on a global scale, we Europe anticipate that growth in the global +12% 470 thereof Eastern Europe +20% market for material handling equipment 4
Slide 38: Forecast for the 2018 financial year
Jungheinrich Group: Forecast for the 2018 financial year Forecast 2018 Incoming orders in € billion 3.75–3.85 Net sales in € billion 3.6–3.7 EBIT in € million 270–280 EBIT ROS at around the same level as last year (7.5%) EBT in € million 250–260 EBT ROS at around the same level as last year (7.1%) N
Slide 39: 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 40: DUNGHEINRICH
DUNGHEINRICH
Slide 41: Appendix
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Slide 42: Global ranking of material handling equipment manufacturers
Global ranking of material handling equipment manufacturers 2016 net sales of forklift trucks and warehouse technology in € billion Ranking in Europe 8,3 8.3 Jungheinrich is the sector’s 5,2 no. 2 behind Kion, 5.2 in front of Toyota 3,1 3.1 Mitsubishi 2,7 2.7 2,6 Linde Nippon Y. 2.6 2,2 2.2 Still Ca
Slide 43: Jungheinrich Group production sites
Jungheinrich Group production sites 43
Slide 44: 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 Net sales 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
Slide 45: 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% Net income 82 126 138 154 182 Employees (FTE) 10,178 12,549 13,962 15,010 16,248 - Ger
Slide 46: 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 47: 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