Jungheinrich AG · XETR:JUN3
Jungheinrich — FY2018 Earnings Presentation
47 slides from Jungheinrich's earnings presentation, Mar 20, 2019
Slide 1: IR Presentation for the 2018 financial year
IR Presentation for the 2018 financial year Hamburg, 20 March 2019
Slide 2: Agenda
AGENDA 2018 AT A GLANCE FINANCIAL KEY FIGURES STRATEGIC OVERVIEW
Slide 3: 2018 at a glance
1 2018 AT A GLANCE Jungheinrich is one of the world’s leading solutions providers for the intralogistics sector
Slide 4: 2018 – Another successful year for Jungheinrich
2018 – Another successful year for Jungheinrich NEW ALL-TIME HIGHS ~ 12,000 UNITS OF FOR INCOMING ORDERS EMPLOYEES MATERIAL HANDLING (€3.97 BILLION), 18,000 WORLDWIDE EQUIPMENT WITH REVENUE (€3.80 BILLION), LITHIUM-ION TECHNOLOGY AND EBIT (€275 MILLION) DELIVERED GLOBAL SALES AND +66% REVENUE IN SER
Slide 5: The Jungheinrich Group in figures
The Jungheinrich Group in figures 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 ROS 7.5%
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 Proposal 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 implement
Slide 7: Financial key figures
2 FINANCIAL KEY FIGURES Facts and figures
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 20/03/2019 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 of importance to Jungheinrich
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: Double-digit increase in value of incoming orders
Double-digit increase in value of incoming orders All business fields, in € million New truck business, in thousand units ■ More than 20% of the increase was due to higher demand for logistics systems solutions. +6% +12% 131 3,971 123 3,560 2017 2018 2017 2018 20/03/2019 12
Slide 13: Production virtually exclusively focused on electric trucks
Production virtually exclusively focused on electric trucks Production, in thousand units Orders on hand, in € million ■ 97% of the trucks are electric trucks. ■ A large amount of the orders on hand are attributable to “Logistics Systems”. +1% +31% 907 120 121 692 thereof with Li-Ion-batteries (unit
Slide 14: Group revenue hits all-time high
Group revenue hits all-time high Group revenue (in € million) Revenue by region (%) Germany Western +11% 24 Europe 3,796 3,435 47 2018 Other 13 countries 16 2017 2018 Eastern Europe ■ All business fields and ■ Growth mainly achieved in Germany, Italy, Poland, Austria and divisions contribute to reve
Slide 15: 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 16: EBIT and EBT up again
EBIT and EBT up again EBIT, in € million EBT, in € million ■ EBIT adversely affected by noticeably higher ■ The measurement of securities and personnel costs, higher than expected raw derivatives held in the special fund have a material prices, costs for CeMAT, the industry’s negative influence on t
Slide 17: Profit or loss slightly below the previous year
Profit or loss slightly below the previous year Profit or loss, in € million Earnings per preferred share, in € 182 176 1.80 –3% –4% 1.73 2017 2018 2017 2018 20/03/2019 17
Slide 18: Research and development expenditure further extended, capital expenditure increased
Research and development expenditure further extended, capital expenditure increased R&D expenditure, in € million Capital expenditure, in € million ■ Focus: Expansion of market leadership in energy ■ Priorities in 2018: Expansion of the spare parts storage systems, expansion of product portfolio fo
Slide 19: Cash flow from operating activities impacted by increase in financing
Cash flow from operating activities impacted by increase in financing for trucks for short-term rental and financial services Cash flow from operating activities, Cash flow from investing activities, in € million in € million ■ 2018: 40% of the change is based on payments for company acquisitions in
Slide 20: ROCE down on previous year due to rising net debt
ROCE down on previous year due to rising net debt Working capital, in € million Net debt, in € million Capital employed, in € million 838 735 1,717 1,497 108 in % of revenue ROCE1 21.4% 22.1% 7 17.3% 16.0% 31.12.2017 31/12/2017 31.12.2018 31/12/2018 31.12.2017 31/12/2017 31.12.2018 31/12/2018 31.12.
Slide 21: Stable financial position and capital structure
Balance sheet total rises to €3.6 billion Stable financial position and capital structure Shareholders’ equity, Equity ratio Group, Equity ratio Intralogistics in € million in % segment, in % 1,362 30 1,244 29 48 46 Balance sheet total in € million 4,130 4,746 31/12/2017 31.12.2017 31/12/2018 31.12.
Slide 22: More than 40% of new trucks marketed through financial service agreements
More than 40% of new trucks marketed through financial service agreements Original value Original value of contracts Trucks in contracts on hand, of new contracts, in € million on hand, in € million in thousand units +10% +12% +11% 2,793 790 2,486 172 719 155 2017 2018 31.12.2017 31/12/2017 31.12.20
Slide 23: Workforce expanded further
Workforce expanded further Employees (full-time equivalent)1 1,629 17,877 16,248 +10% 7,378 ■ Sales capacity strengthened in Europe, Germany especially in France, Germany, Spain, Italy 6,962 and Poland. ■ 306 new employees due to acquisitions in South America (Colombia, Ecuador and Peru) and Serbia.
Slide 24: Current development of business in January and February 2019
Current development of business in January and February 2019 Jan and Feb Jan and Feb Change 2018 2019 in % Incoming orders 584 663 +14% in € million Incoming orders 20,700 21,500 +4% in units Production 19,500 18,600 –5% in units Revenue 562 613 +9% in € million 20/03/2019 24
Slide 25: Strategic overview
3 STRATEGIC OVERVIEW Group strategy with clear goals
Slide 26: 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 20/03/2019 26
Slide 27: Group strategy with clear goals geared towards sustainable, profitable growth
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. 20/03/2019 27
Slide 28: 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 29: Market drivers: electric mobility, lithium-ion technology 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 30: Market drivers: strategic investment in lithium-ion battery systems
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 31: 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 32: Market drivers: e-commerce, digital products and full 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 33: 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 34: Jungheinrich: an attractive investment
Jungheinrich: an attractive investment MARKET OPPORTUNITIES MEET THE STRENGTH OF JUNGHEINRICH! 20/03/2019 34
Slide 35: Global market for material handling equipment will continue to grow in 2019
Global market for material handling equipment will continue to grow in 2019, but with slowing momentum GLOBAL Less dynamic growth; possible slight decrease compared MARKET to 2018. Growth rate in the low-to-mid single-digit percent range at best. EUROPE Rise in market volume in the low-to-mid si
Slide 36: Jungheinrich Group forecast 2019
Jungheinrich Group forecast 2019 Incoming orders Group revenue EBIT All business fields (in € million) (in € million) (in € million) 4.05 to 4.20 3.85 to 4.05 275 to 295 3,971 3,796 275 EBIT ROS 7.2% 7.0–7.4% 2018 2019e 2018 2019e 2018 2019e 20/03/2019 36
Slide 37: 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 38: 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 39: DUNGHEINRICH
DUNGHEINRICH
Slide 40: Notes
NOTES JUNGHEINRICH
Slide 41: 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 42: Jungheinrich Group production sites
Jungheinrich Group production sites 20/03/2019 42
Slide 43: 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 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 20/03/2019 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