Jungheinrich AG

Earnings Release • May 19, 2015

Press Release

Embargoed until 10:15 a.m. on

Tuesday, May 19, 2015

May 19, 2015

Hans-Georg Frey Chairman of the Board of Management of Jungheinrich AG

Speech delivered at the

Annual General Meeting

on May 19, 2015

Stage Theater Neue Flora, Hamburg

Please check against delivery!

Page 1 of 9

Jungheinrich Aktiengesellschaft Am Stadtrand 35 · 22047 Hamburg, Germany · Phone +49-40-6948-0 · Fax +49-40-6948-1777 · info@jungheinrich.de · www.jungheinrich.com

Chairman of the Supervisory Board Jürgen Peddinghaus Board of Management Hans-Georg Frey, Chairman · Dr. Lars Brzoska · Dr. Volker Hues · Dr. Klaus-Dieter Rosenbach Corporate headquarters Hamburg · Registration court Hamburg HRB 44 885 Bank accounts Commerzbank AG Hamburg (BIC: COBADEHHXXX) IBAN: DE57 2004 0000 0630 7300 00; (BLZ 200 400 00) 6 307 300 Deutsche Bank AG Hamburg (BIC: DEUTDEHHXXX) IBAN: DE96 2007 0000 0042 9977 00; (BLZ 200 700 00) 0 429 977 Deutsche Postbank AG Hamburg (BIC: PBNKDEFFXXX) IBAN: DE45 2001 0020 0071 7472 04; (BLZ 200 100 20) 71 747 204

Esteemed shareholders, shareholder representatives and guests, My dear Lange and Wolf families, Ladies and Gentlemen,

On behalf of the Board of Management of Jungheinrich AG, I hereby welcome you to our Annual General Meeting here at Stage Theater Neue Flora.

We are pleased that you have come here today in order to inform yourselves firsthand on the development of the Jungheinrich Group's business.

Fiscal 2014 was a good year for Jungheinrich. We achieved all-time highs in terms of both incoming orders and net sales. We posted record levels of EBT, EBIT and net income. With 83,500 trucks manufactured, our production output achieved the highest level in our corporate history.

And we would like you, esteemed shareholders, to partake of this success appropriately. The dividend will be raised considerably, pushing it up to a respectable 21 per cent for preferred shares.

Another extremely encouraging piece of news is that, on December 4, 2014, the Jungheinrich share was included in the MDAX, which comprises the 50 largest listed companies in Germany below the DAX. Given our scale, we feel at home there.

Despite our strong financials, we will not get carried away. Instead, we will continue to pursue the course for growth on which we have embarked and implement our strategic measures with resolve.

And now, it is a pleasure for me to comment on the figures recorded in the financial year that just ended, after which I will inform you of where we stand this year and how we have positioned ourselves for the future.

Let me begin with the environment on the market. In terms of incoming orders based on units, the world material handling equipment market displayed another positive development in 2014, experiencing 8 per cent growth. What was especially pleasing to us was the strong growth witnessed in Europe, which expanded by 9 per cent, since we earn over 90 per cent of our net sales there. We believe this region harbours further potential for recovery, given that demand on the market is still nearly 70,000 trucks lower than the record witnessed in 2007. Demand in Eastern Europe stagnated, owing to the collapse of the Russian market, which shrank by 19 per cent. However, Jungheinrich bucked the trend in Russia, growing by 9 per cent. Demand in Asia and North America displayed very good development last year.

Now I would like to give you an overview of the development of our Group based on the financials for 2014.

Incoming orders were up 8 per cent across all business fields, surpassing the 2.5 billion-euro mark for the first time. Particularly strong development was displayed by new truck business, which expanded by 114 million euros. This was also reflected in the number of orders for new forklifts, which rose by 9 per cent to 85,600.

This laid the foundation for the large number of units in production, which was 15 per cent higher than in the preceding year. The very strong gains posted by our new factories in Degernpoint (Bavaria) and Qingpu (China), both of which put in their first full year of production, were encouraging as well.

All in all, Jungheinrich achieved 2.5 billion euros in consolidated net sales, representing an increase of 9 per cent. Non-European markets continued to grow their share of net sales by region. In fiscal 2014, Jungheinrich generated 9 per cent of its net sales outside Europe, where we intend to command a share of 15 per cent over the medium term. All business fields contributed to this net sales growth, with new truck business leading the way and recording a gain of as much as 13 per cent. New truck business continued to account for the largest share of total net sales, or 54 per cent.

I would now like to say a few words about the Logistics Systems and Mail Order Divisions, which are among the key points of our strategy, in particular. The logistics systems business, which encompasses the planning, design and implementation of entire warehouses, drove up its net sales by 18 per cent to 339 million euros. We widened the range of offerings in the mail-order business once again, boosting net sales by 19 per cent to 50 million euros. As you can see, we have posted double-digit growth with our Profishop in each of the last four years. We believe both these divisions have bright prospects.

Our financial services operations also displayed encouraging development. Their net sales were up 32 per cent to 547 million euros. Contracts worth 464 million euros were won, which was 49 million more than in the previous year. The value of contracts on hand thus totalled over 1.8 billion euros. Sales from more than every third new Jungheinrich truck are generated within the scope of the financial services business.

Earnings posted another significant improvement, rising by 12 per cent to 193 million euros. A positive exceptional effect caused by the adjustment to the Dutch

pension plan made a contribution. The EBIT return on sales advanced to 7.7 per cent. Due to the slight drop in the effective tax rate, net income amounted to 126 million euros, up18 per cent on the figure recorded in 2013.

Corresponding earnings per preferred share for the 2014 financial year totalled 3.73 euros. On the basis of these encouraging figures, the Board of Management and the Supervisory Board propose to this Annual General Meeting that a dividend of €1.04 be paid per no-par-value preferred share and a dividend of €0.98 be paid per no-par-value ordinary share. This represents an increase of €0.16, which translates into a rise of 21 per cent per preferred share. As a result, the payout ratio will increase further, rising from 26 to 27 per cent, furnishing proof of the continuity of our dividend policy. We will strive for a payout ratio of between 25 and 30 per cent of net income in the future as well.

Last year, we stepped up our research and development expenditure once again, increasing it by more than 10 per cent to 50 million euros. The focal points of our activities in this field are forward-looking topics, namely the energy efficiency of drive systems and the automation of material handling equipment.

A few days ago, Jungheinrich was bestowed the renowned International Forklift of the Year Truck Award yet again, after having received it in both 2013 and 2014. The high-calibre jury of experts was swayed by the EFG S30s battery-powered forklift truck. We feel this recognition confirms our outstanding research and development work as well as the excellent production of our factories. Proof of this comes courtesy of our premium products, which set technical standards in the sector over and over again.

Although we had already completed our three strategic large-scale projects for our production and spare parts logistics, our capital expenditures remained high in 2014. They totalled 84 million euros in the fiscal year that just ended.

One of the focal points was the modernization of the production of counterbalanced trucks at our main plant in Moosburg, where we purchased stateof-the-art production facilities and optimized production processes in order to shorten cycle times in production, while making it more flexible. Once the modernization measures have been completed next year, production capacity at Moosburg will nearly double to 30,000 trucks per year.

Rapid inroads are also being made in the construction of our new corporate headquarters at our original domicile at Friedrich-Ebert-Damm in Hamburg, as you

can see here. If work progresses as planned, we will be able to move into the new building together with our more than 500 employees before the end of the year. Other major projects that we spurred in 2014 were the expansion of our Dresden Used Equipment Centre and the construction of a training centre at our Norderstedt factory. Furthermore, we acquired a plot of land including a building for our sales branch office in Singapore. All of our large-scale construction projects are on schedule and in line with their budgets.

The Group's financial situation improved even further. Cash flows from operating activities were positive, and had risen to 42 million euros by the end of 2014. Adjusted to exclude liabilities from financial services, the Group did not have any net debt. Instead, it had a net credit of 132 million euros. The decline compared to the prior year resulted from the significant expansion of our short-term hire fleet and the build-up of working capital as our company continued to grow.

By the end of the 2014 financial year, the EBIT return on capital employed was 18.4 per cent, which was within our targeted range of between 15 and 20 per cent. The marginal decline was largely due to our major capital expenditures, which led to a disproportionately strong rise in capital employed.

Shareholders' equity, which rose to 900 million euros, and our robust equity ratio are proof of our company's financial clout. We disclose the equity ratio both for the entire Jungheinrich Group and adjusted to disregard the influence of the 'Financial Services' segment so that we can compare ourselves to other mechanical engineering companies that do not have a proprietary leasing business. At 46 per cent, our equity ratio for the 'Intralogistics' segment remained encouragingly high in light of our strong net sales growth.

Concurrently to our significant growth, last year, we invested heavily in our most important asset, our employees. In 2014, more than 700 colleagues were added to our payroll, causing our workforce to increase to over 12,500 employees by the end of the reporting year. The points of focus were the strengthening of our sales network in Europe and Asia as well as the logistics systems business. I would like to underscore one more point. Forty-five per cent of our labour force is active in our service organization. The number of service engineers working for us has surpassed the 4,000 mark. This demonstrates just how important this part of the business is to our company.

Jungheinrich also enjoyed a very successful 2014 stock trading year. Quotations fluctuated repeatedly over the course of the year—above all due to the persistent crisis regarding Ukraine and other geopolitical uncertainty. Positive stimuli were

injected by the steady upturn in the USA and the package of measures put together by the European Central Bank in the fourth quarter. Jungheinrich's share price developed better of the course of the year than German lead indices, rising by 12 per cent. In the first quarter, the share achieved an all-time high of 56.48 euros. Following a decline over the remainder of the year, the positive trend observed at the end of 2014 continued at the beginning of this year. The quotation exceeded the 60-euro mark for the first time, repeatedly hitting new all-time highs, the most recent one of which was 66.78 euros on April 27.

Furthermore, the Jungheinrich share advanced to the MDAX on December 4, 2014. We view this as recognition of the good work that is being done at Jungheinrich.

Esteemed Shareholders,

we will be celebrating a special anniversary this year: Twenty-five years ago to the day, on August 30, the Jungheinrich share made its debut on the Frankfurt Stock Exchange. Not only has our company been writing a success story in recent years—our share price has also posted extremely positive development. Those who became shareholders on the day of the IPO have enjoyed a respectable increase in value. To date, the price of the Jungheinrich share has nearly quadrupled from its issue price, which is equivalent to 17.38 euros. Added to this are the dividends that are paid to holders of preferred shares every year—even during times of economic difficulty.

After this brief journey through history, I would like to come back to the company's present state. In summary, we got off to a successful start to 2015 and are continuing to work on achieving our goals in terms of growth.

In detail, our figures as of the end of April are as follows:

Incoming orders in euros were up 10 per cent. Incoming orders in terms of units advanced by 14 percent.

Net sales rose by 9 per cent. Production was up by 8 per cent.

As you can see, we gained even more momentum. Given our well-filled order books, we are convinced of being able to close the first half of 2015 on a positive note. We are growing at a pace similar to that of last year. This makes me optimistic about being able to achieve our objectives this year—also in terms of market share.

Now you have a good idea of how we are faring at present. We intend to continue treading this path with a great deal of passion. In this context, I would like to present to you Jungheinrich's growth strategy, which has its sights set on 2020, the Board of Management has worked hard at developing, and over which the

Supervisory Board is watching attentively. This strategy was defined in detail for every single unit within the Group, ensuring that each executive knows the measures to take in order to achieve the goals we have set ourselves for the next five years. We have a clear roadmap, which we are reviewing using a strategic controlling system in order to see to it that every single measure is taken as planned in each of our company's business areas.

Our growth strategy consists of five components: the expansion of the core business in Europe, the strengthening of our presence in Asia's growth markets focussing on China, the significant expansion of the logistics systems business, the substantial increase of our share of the IC engine-powered counterbalanced truck market, and massive growth in the mail-order business, namely our Profishop. These are the main drivers that will help us achieve our goal of surpassing the 3 billion-euro mark in net sales in 2017.

The activities we have initiated are already bearing fruit. For instance, we further consolidated our position on the European market in 2014, and actually managed to increase it in the first quarter of 2015. This is a region in which we intend to own significantly more than 20 per cent of the market over the long term. In Asia, we boosted net sales by 30 per cent. In China, we clearly outgrew the market. This region still harbours considerable potential—above all for the Logistics Systems Division, which we will expand substantially in Asia. Going forward, the logistics systems business will have bright prospects both there as well as in Western Europe and Russia. Our holistic logistic solutions make us stand out from the competition in the material handling equipment sector.

The IC engine-powered products that we launched last year have been received exceptionally well by customers. We increased our share of the European market in this segment from just under 6 per cent to 7 per cent. Thanks to our updated IC forklifts, good opportunities continue to present themselves on the market. Another success story is being written by our mail-order operations, which have been posting double-digit growth rates for years and posted a gain of 19 per cent. In the next few years, we intend to expand these activities going beyond Germany, Austria and the Netherlands into other countries.

An additional highlight seen last year was that our short-term hire fleet was expanded to significantly more than 38,000 forklift trucks. Our large-scale construction projects have progressed on schedule and without exceeding their cost allotments. Financing is another area in which we have a good setup. In December, we issued a promissory note bond with a volume of 100 million euros. This gives us further room for manoeuvre as we seek to grow in the future.

We need motivated, performance-oriented employees in order to achieve our ambitious goals. If one wants to play in the Champions' League, besides having the right players on one's team, one must also constantly evolve as a company. Nothing is more constant than change—and trust you me: We are well prepared for it.

With our project entitled 'The Jungheinrich Way of Leadership,' we are stepping up entrepreneurship within our management team with a view to doing a better job of leveraging potential existing throughout the organization.

Our far-sighted action ensures that we do more than just safeguard jobs and actually recruit people continuously. We will retain talented staff over the long term and win over additional highly qualified personnel in order to refine our existing team. More than 700 new co-workers joined us in 2014 alone—a figure that will be bested this year. By the end of April, we had already created 300 new positions. Over the medium term, we will increase our workforce to 15,000 employees. If the economic environment remains roughly as positive as it is at present, we will post respectable growth in the years ahead and bring more people on board.

We have set our sights on achieving strong growth this year as well. As I told you earlier, we are well on our way to hitting this target. To this end, we will enlarge our global footprint—above all on the growth markets that we have identified. Having updated our manufacturing sites to the state of the art and significantly expanded our production capacity in the last few years, stepping up our sales activities has become our top priority. To this end, we will enlarge the existing sales and service network, establishing new Jungheinrich sales and service companies in the process. We will continue to invest heavily in research and development and launch a total of over 20 new products this year.

What's our outlook on 2015? Based on the positive economic forecasts which envisage the world economy growing by 3.2 per cent, we expect the global material handling equipment market to continue displaying positive development especially in Western Europe and North America. The development of the Eastern European market will depend significantly on demand in Russia. We anticipate that the Eastern European market will shrink. However, it may display stable development if the Russian market recovers considerably over the course of the year. We expect the Asian market to grow if demand for IC engine-powered counterbalanced trucks in China recovers over the course of the year.

What does this mean for Jungheinrich? As I mentioned earlier, we are counting on a good first half of the year in light of the positive figures we achieved as of the

end of April. We anticipate that incoming orders and consolidated net sales will range between 2.6 and 2.7 billion euros in the 2015 financial year. Our assessments have EBIT totalling between 190 and 200 million euros for the full year. Income before taxes should be of an order of 170 to 180 million euros.

Capital expenditures on tangible assets should amount to between 90 and 100 million euros, surpassing last year's figure. We will largely complete our major construction projects in Moosburg, Dresden and Hamburg this year. The training centre in Norderstedt has already been finished. At about 50 million euros, our research and development expenditures will maintain its high level. Our targeted return on capital employed remains between 15 and 20 per cent. We place our chips on continuity when it comes to our dividend policy as well. As before, we are striving for a payout ratio of between 25 and 30 per cent of net income.

In closing, I would like to quote our company founder, Dr. Friedrich Jungheinrich. In his day, he stamped his mark on the trust placed in his employees' initiative and innovative spirit with the motto "Go for it!" Today, we are refining the motto in line with modern entrepreneurship with the leadership mission entitled "The Jungheinrich Way of Leadership." "Go for it and lead the way," we say. Because leadership needs role models.

As you have seen and heard, Jungheinrich is well positioned to take on the future. This is in great part due to our dynamic, highly motivated team with which we will master the challenges ahead of us and which we will continue to promote and strengthen. Our employees' know-how, dedication and team spirit are the heart that beats within our company. My fellow Board members and I thus wish to express our heart-felt gratitude to the entire workforce for its commitment.

We should equally like to thank the Supervisory Board, which has stood by our side both constructively and closely as we have done our work.

And last, but not least, a very special word of gratitude goes out to you, our esteemed shareholders and owners and my dear Lange and Wolf families. We are happy that you are always by our side as we do our work, assisting and appreciating it in the process.

Thank you for your attention.