Jungheinrich AG

Investor Presentation • Jun 27, 2017

Jungheinrich AG – Capital Markets Day Kaltenkirchen, June 27, 2017

Capital Markets Day 2017

Business Model Financial Services

Andreas Urbanski Head of Corporate Finance Kaltenkirchen, June 27, 2017

The Jungheinrich Business Model

Business Fields 'Intralogistics'

Financial Services Principles and Objectives

Business policy	 Service function for Jungheinrich sales division  Substantial financial services profits are stated in sales division  New truck business/after-sales services/used equipment
Sales policy	 Promotion and expansion of new truck business and after-sales services  Principle: Every financial service agreement to cover full service and maintenance  Permanent customer retention  Flexible, customized contracts
Risk management	 Matching refinancing (term and interest)  Regular creditworthiness checks  Quarterly assessment of contractual/residual value risks  Transparency and process reliability via Group database
Balance sheet	 Full disclosure on Jungheinrich's consolidated balance sheet

Main Types of Contracts

About three quarters of all contracts are finance leases

Basics Financial Services

Main refinancing Types (I)

• Jungheinrich concludes a Financial Services contract (finance rate and Full-Service rate) with the customer.
• Jungheinrich sells equipment to the bank.
• The equipment will be leased back from the bank via lease back contract.
• Bank pays the selling price for the equipment to Jungheinrich.
• The lease back contract contains a residual value guarantee from Jungheinrich. -> Jungheinrich will buy back the equipment at the end of the contract from the bank for the contractual residual value.

Basics Financial Services

Main refinancing Types (II)

• Jungheinrich mediates the customer to the bank.
• Customer and bank conclude a Financial Services contract.
• Jungheinrich sells the equipment to the bank (incl. residual value guarantee).
• Bank pays the selling price to Jungheinrich.
• The finance rate and the Full-Service rate will be invoiced by the bank to the customer.
• Jungheinrich invoices the bank for the Full-Service.
• The bank forwards the Full-Service rate of the customer to Jungheinrich.
• This is the most common type of Vendor Leasing, other special types do exist.

Financial Services

Refinancing Management

Key Tasks Refinancing Management

Key tasks:

• Negotiation and approval of refinancing contracts
• Margin negotiations
• Financial Services credit securities: e.g. weak + hard loc "Letter of Comfort"
• Management of credit exposure and bank partners
• Support of sales units in the case of operative challenges with bank partners
• Acquisition of new bank partners
• Management of "Elbe River Capital S.A." European Financial Services Refinancing Platform

Standardized Steering of the Financial Services Companies

Group Financial Services

Jungheinrich Financial Services International GmbH Jungheinrich Rental International AG & Co. KG

• Commercial Management (incl. accounting IFRS)
• Risk Management/steering/reporting Financial Services
• Sales support (concepts, products, projects, Key Account support)
• Board function for Financial Services companies (supervision rights in accordance with Articles of Ass.)

Financial Services

Key Data for the 2016 Fiscal Year

Financial Services

Share of new Trucks marketed via Financial Services

Earnings Flow

Capitalized Value Financial Services Contract Portfolio

European Platform: ABCP – Transaction Process

Refinancing (selling of internal receivables) to Elbe River Capital S.A.

Elbe River is refinanced via bank partners "Conduits" with Commercial Papers Bank partner refinancing normally via capital market

HBII / IFRS Principles

Operating Leases Finance Leases

Capitalization of the truck in the fixed assets of the lessor (Jungheinrich)

Capitalization of the truck in the fixed assets of the lessee (customer) and accounting of a receivable on the balance sheet of the lessor (Jungheinrich)

About three quarters of all contracts are finance leases

New Leasing Standard IFRS 16

What are the Implications of the new Standard?

percent 7 per year

Capital Markets Day - Kaltenkirchen, June 27, 2017 21

Jungheinrich 4.0

4/7 Growth Strategy

As we strive to achieve our net sales goal of €4 billion in the 2020 financial year, we aim to grow by 7% per annum.

Financial Services – Targets 2020

Our Know-how is your Profit

Capital Markets Day 2017

Jungheinrich goes Digital Added Customer Value with Digital Products

André Friedrich Vice President Digital Solutions Kaltenkirchen, June 27, 2017

Digital Solutions of Jungheinrich complement and expand the existing Business Model

Components of Digitalization

Mastering three Layers of Implementation

Interconnection and Digitalization as the Basis for Innovation

Capital Markets Day - Kaltenkirchen, June 27, 2017

A Portfolio of Digital Products is formed

ISM Online. Also available on the Smartphone and Tablet.

ISM Online is a holistic, web-based fleet management system that provides an efficient way of managing the internal logistics from any location.

Advantages at a glance:

Reduction of operating costs

• Exact overview of maintenance costs and quick identification of cost drivers through high transparency
• Prevention of unnecessary disruptions in the day-to-day business through predictive analysis

Improved security in the warehouse

• Driving permit only for qualified persons through access control
• Increased conscientiousness by the drivers and accident prevention through shock detection

Increased productivity

Optimal fleet composition through preliminary operating and productivity analysis

StartSafe Paper Is the Past. StartSafe Is the Future!

Digital check of vehicle's functions and appearance

Instant feedback regarding truck condition

Reduced administrative costs

Increased safety

Full transparency

FleetRadar

The Award winning indoor positioning Tool. Must-have of the Year!

■ Quick overview of the current location of trucks

TIME SAVING

INCREASED VEHICLE AVAILABILITY

Central online-definition of warehouse zones (also at short term), alerting via email in the case of zone violations

Visualization of movement data for path optimization and identification of hazard potential

INCREASED EFFICIENCY

Definition of reference zones and displaying warning symbols on the smart device display

REDUCTION OF ACCIDENTS

Creating added Value for Customers through Interconnection and Digitalization

Capital Markets Day - Kaltenkirchen, June 27, 2017

Capital Markets Day 2017

Jungheinrich Spare Parts Centre in Kaltenkirchen

Stefan Brehm Vice President After Sales, Jungheinrich Service & Parts AG & Co. KG Kaltenkirchen, June 27, 2017

Service & Parts within the Jungheinrich Group

Jungheinrich After-Sales at a Glance

What Jungheinrich Service & Parts AG & Co. KG is about?

Customer Service in Detail

Customer Service for Industrial Trucks

• More than 4,500 service engineers worldwide
• Fast communication and short response times
• Electronic troubleshooting and online spare parts order via notebook

• Software controlled technician deployment

• Maintenance

• Repairs
• Full service
• Safety service
• Hydraulic oil service

• Energy management for batteries and chargers

• Completely compatible with the vehicle's build

• Availability for more than ten years
• Europe-wide in-night express delivery
• Central spare parts logistics centre Kaltenkirchen with more than 98% spare parts availability
• Worldwide delivery to technicians, dealers and partners

Customer Service in Detail

Customer Service for Logistics Systems

After-Sales Services Net Sales

Global Supply of Spare Parts

Realization of the Kaltenkirchen Spare Parts Centre

• Construction start: November 2011
• Warehouse operation start: August 2013
• Capex: €35 million
• 22,000 qm warehouse area, >75,000 parts, 3,800 qm office space
• Possible expansion of warehouse capacity by 100%

Warehouse Optimization through Automated Logistics Systems

Automatic small parts warehouse: up to 1,200 storage and

retrieval operations per hour

High-bay warehouse: up to 245 storage and retrieval operations per hour

Conveyor system: up to 280 pallets and 2,500 containers per hour

Facts and Figures

*ASW: Automatic small parts warehouse **HBW: High bay warehouse

Our Central and Regional Warehouses around the World

Moscow

98% availability

800 m² storage area >10,000 warehouse items >250 order lines per day >89% availability

22,000 m² storage area >75,000 warehouse items >7,000 order lines per day

Bratislava

1,000 m² storage area >10,000 warehouse items >1,000 order lines per day >86% availability

10,000 m² storage area 30,000 warehouse items >5,000 order lines per day >94% availability

Indianapolis

MCFA owned warehouse 14,000 warehouse items 500 order lines per day >93% availability

APAC

1,500 m² storage area 8,000 warehouse items >200 order lines per day >90% availability

Expansion of Spare Parts Centre Kaltenkichen in 2017 Capex approx. ~ €10 million

Construction of a new Warehouse Building and Office Space in 2018

Capital Markets Day 2017

Lithium-Ion Technology: Integral Component of Jungheinrich´s Energy Efficiency Expertise

Dr. Oliver Lücke Member of the Board of Management, Engineering Kaltenkirchen, June 27, 2017

Electric Mobility is our Profession for more than 60 Years

1998

2011

1953 Launch of first electric-four-wheeltruck ("Ameise 55")

World´s first industrial truck with AC drive

First standard lifttruck with Lithium-Ion battery

2017 90% of all lifttrucks available with Lithium-Ion battery

How do we energize Material Handling Equipment Today? "... Design follows Battery…"

• Low power density
• Low energy density
• Medium energy efficiency

… room for improvement!

How do we energize Material Handling Equipment Tomorrow? …Lithium-Ion is simply the better Technology

Short charging times No battery exchanges No battery charging rooms No maintenance / handling ✓ ✓ ✓ ✓

High power density High energy density High energy efficiency Long cycle life ✓ ✓ ✓ ✓

… and we are prepared!

Jungheinrich Lithium-Ion Technology 2011 – Pioneer in the Sector of Industrial Trucks

• First industrial truck with standard Lithium-Ion battery in 2011
• All skills and knowledge in-house
• Development
• Production
• Testing

Energy Consumption of Electric Trucks

Jungheinrich Lithium-Ion Technology

Efficiency: Excellent Interaction of Truck, Battery and Charger

• "Everything from a single source": charger/ battery/ controller
• Intercoordinated, "in-house"-developed components
• Communication between various components

Jungheinrich: The only solution provider in the field of intralogistics for an integrated system

Jungheinrich Lithium-Ion Technology

Intelligent Communication between the Components

Communication 4.0 in production and usage of truck

Lithium-Ion batteries – Purchase or In-house?

*BMS: battery-management-system

Jungheinrich strategy:

• Development and production of Lithium-Ioncells is very cost intensive
• Know-How in industrial trucks is crucial for BMS, cellular modules and batteries

In-house development / in-house production

Focus on creating customer value

Jungheinrich Lithium-Ion Technology

System Approach

More than 90% of electric truck-portfolio can be covered with Lithium-Ion batteries and chargers

More Energy efficiency by Lithium-Ion Technology

a) Lead-acid battery

Proof of Jungheinrich´s Competence in Energy:

Already: 2-Shifts operating with one charged Lead-Acid Battery

Exclusively at Jungheinrich

Proof of Jungheinrich´s Competence in Energy: 2 Shifts 1 Charge - guaranteed

Proof of Jungheinrich´s Competence in Energy:

Certified Energy Efficiency

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CERTIFICATE OF VALIDITY
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• Product Eco Balance: regular certification of the energy consumption during the entire manufacturing and usage phase of all trucks
• Result: up to 40% savings for the last 10 years

Capital Markets Day 2017

Central Spare Parts Centre Kaltenkirchen:

A Showcase for our Capabilities Within Logistics Systems

Dr. Klaus-Dieter Rosenbach Member of the Board of Management, Logistics Systems Kaltenkirchen, June 27, 2017

Logistics Systems – Conclusion of Presentation CMD 2015

Annual Turnover Logistics Systems

* Acc. to annual report 2016

Central Spare Parts Centre Kaltenkirchen

Jungheinrich Pallet Racking Type B

• Jungheinrich proprietary design
• Highest quality in the market
• Material savings by sophisticated calculation of racking statics
• Over 48.000 different available parts enable best possible solutions
• Production in various NRC partner plants worldwide close to market
• RAL Quality Label

Jungheinrich High Rack Stacker EKX

• High intelligence for easy system integration
• Maximum energy efficiency thanks to synchronous reluctance motors
• 2Shifts1Charge promise
• Highest throughput in the market by innovative and intelligent assistance systems – e.g. Floor Pro
• Has already received numerous awards

Jungheinrich Automated Storage and Retrieval System

• Height up to 45 meters
• Fixed-aisle or curverunning
• Single or double deep
• Load capacity up to 10 tons
• Channel storage system
• One or two load handling devices
• EURO, INDU, special pallets

Jungheinrich Automated Mini Load System

• Height up to 20 meters
• Totes and boxes with different characteristics
• High dynamic
• Load capacity up to 2x50 kg
• From single deep up to four times deep
• Direct handling for cartons:
• no repacking
• no additional totes needed

Jungheinrich Dynamic Storage Systems LRK/PRK

• Maximum height: 30 m
• Significant space saving by optimal use of room height
• Increased efficiency by "goods-to-person" principle
• Decreased error-rate by "pick by light"
• Full integration into customer WMS/ERP via Jungheinrich Logistics Interface

Jungheinrich Conveyors

• For pallets, steel containers, totes and boxes
• With automatic palletizing and de-palletizing
• With stretcher and pallet inverters
• With scales and contour check

Jungheinrich Warehouse Management System WMS

• Flexible, professional warehouse management
• Continuous process optimization through smart innovation support
• Expandable and updatable any time
• Continuous developement and improvement for over 20 years
• More than 300 installations, 220 customers worldwide
• Jungheinrich is also SAP service partner

Jungheinrich Automated Guided Vehicles AGV

• Automation based on serial trucks
• High precision and flexibility through laser navigation
• Reflective marks and natural navigation
• Innovative Jungheinrich Li-Ion battery technology allows for 24/7 use
• Integration in existing systems with Jungheinrich Logistics Interface
• Mixed operation with manual trucks

Jungheinrich Robotic Palletizing and Order Picking

• Very high palletizing performance
• 24/7 availability
• Very short reaction time for high priority orders
• Flexible load handling, attachment for different container types
• Reliable and accurate palletizing process
• "Careful" load handling
• Usable as component in automated distribution centers

Jungheinrich – "USP"

Jungheinrich is the only fully integrated provider of all solutions for intralogistic tasks!

The Future

Jungheinrich will continue developing and marketing new and innovative technologies for automation, digitalization and interconnection!

Stay tuned!