Jungheinrich AG

Investor Presentation • Mar 22, 2017

Balance Sheet Press Conference

Hans-Georg Frey (Chairman of the Board of Management) Dr. Volker Hues (Member of the Board of Management) Frankfurt, March 22, 2017

Content

• 1. Jungheinrich at a Glance
• 1. World Material Handling Equipment Market
• 1. Business Development in 2016 and current Business Trend
• 1. Strategic Issues and Outlook

Jungheinrich at a Glance Jungheinrich had a successful year in 2016

Jungheinrich at a Glance

Highlights Jungheinrich 2016

Jungheinrich had a successful year in 2016

• Incoming orders, net sales, EBIT and the dividend post double-digit growth yet again
• Incoming orders and net sales both > €3 billion
• Production eclipses 100,000 mark for the first time
• Market share increased worldwide

Growth Strategy…

…implemented with resolve

• MIAS successfully integrated into the 'Logistic Systems' Division
• Mail order business posts strong organic growth
• Establishment of a joint venture with Anhui Heli Co. Ltd. China's largest material handling equipment rental company
• Expansion of the global direct sales footprint via the acquisition of the dealership business in Chile

Jungheinrich Group

Target-to-actual Comparison in 2016

	Forecast in August 20161	FY 2016
Incoming orders in € billion	3.1 - 3.2*	3.2
Net sales in € billion	3.0 - 3.1*	3.1
EBIT in € million	228 - 238*	235
EBIT ROS in %	At least 7.6%	7.6
EBT in € million	208 - 223*	216
EBT ROS in %	At least 6.9%	7.0
R&D expenditures in € million	60 - 65	62
Capital expenditures in (tangible assets) € million	75 - 85	53
Net credit in € million	Low, double-digit million euro territory	56
ROCE in %	15 - 20	17.8
Market share in Europe in %	Slight improvement over 2015 (21.5)	21.6

* Raised since March 2016.

1 Interim report as of June 30, 2016.

Balance Sheet Press Conference

Dividend

Objective: Payout ratio of between 25% and 30% of net income

1 Figures are retroactively restated due to stock split (1:3) on June 22, 2016.

World Material Handling Equipment Market Jungheinrich is the Sector's No. 2 in Europe

World Material Handling Equipment Market—Market Volume Incoming orders in thousand units

Source: WITS, SIMHEM.

World Material Handling Equipment Market

Breakdown of Volume by Region

Source: WITS, SIMHEM; based on incoming orders in units.

World Material Handling Equipment Market Breakdown of Volume by Product Segment

Source: WITS, SIMHEM; based on incoming orders in units.

World Material Handling Equipment Market

Market Structure Comparison Broken Down by Product Segment in 2016 (2007)

Europe and China: Trend towards warehousing equipment = future growth potential for Jungheinrich

Warehousing equipment

Battery-powered counterbalanced trucks

Internal combustion enginepowered counterbalanced trucks

Source: WITS; based on incoming orders in units.

World League Ranking

2015 (2014) Net Sales in € billion

1 Fiscal year April to March. Source: Logistik Journal, 10/2016.

Development of the Material Handling Equipment Markets of Importance to Jungheinrich

Incoming Orders

Of all business fields, in € million

• Some 70% of the rise was due to new truck business.
• This also reflects the fact that the acquisitions of the dealership operations and MIAS made in 2015 were included on a fullyear basis.

New truck business, in thousand units

■ The main driver of the increase was the marked rise in demand—primarily in Europe.

Production and Orders on Hand New Truck Business

Production, in thousand units

• Production surpasses one hundred thousand mark for the first time.
• The rise was predominantly due to an increase in warehousing equipment unit figures.

Orders on hand, in € million

■ The order reach is four months.

Consolidated Net Sales

in € million

• Net sales from new truck business +15%, in part driven by:
• the inclusion of NTP/MIAS and the acquired dealership business on a fullyear basis.
• Net sales from trucks for short-term hire and used equipment +15% due to:
• Expansion of the short-term hire fleet to 53,000 forklifts.
• Nearly one-third of the rise stemmed from the transfer of the rental equipment of Jungheinrich China to the joint venture with Heli.
• Net sales from after-sales services + 7%.

1 EBIT reflects the positive one-off effect of €4.7 million of the deconsolidation of Boss Manufacturing Ltd., UK (Q2 2016).

Research & Development and Capital Expenditures

R&D expenditures, in € million Capital expenditures, in € million

• Prior-year figure includes several large-scale construction projects completed in 2015.
• Focal point in 2016: modernization of the counterbalanced truck factory (Moosbourg) amongst others.

Cash flows from operating activities, in € million

Cash flows from investing activities, in € million

■ Prior-year figure characterized by higher cash outflows for acquisitions and capital expenditures on tangible assets.

Net Debt

in € million

12/31/2015 12/31/2016

Net debt = Financial liabilities ./. liquid assets and securities.

Working Capital and ROCE

Working capital, in € million

Capital employed, in € million

1 ROCE = EBIT / capital employed (cut-off date). Capital employed: shareholder's equity + financial liabilities + provisions for pensions and similar obligations + long-term personnel provisions ./. liquid assets and securities.

Financial Services

• Financial service contracts secure long-term customer retention.
• 40% of new trucks are marketed via financial service agreements (prior year: 39%).
• Number of forklifts under contracts on hand up 10%.

Full time equivalents, including apprentices, excluding temporary workers.

• Sales force expanded in Europe above all in Poland, Germany, Italy, Russia, Spain and Switzerland.
• Headcount + 186 due to acquisitions and establishments of companies in Romania and Chile.
• Logistics systems expanded.
• After-sales headcount increased by 6% to 4,584.

Source: WITS, SIMHEM; based on incoming orders in units, Jan. and Feb. 2017 vs. Jan. and Feb. 2016.

Current Business Trend February 2017

	Jan. and Feb. 2016	Jan. and Feb. 2017	Change in %
Incoming orders in € million	469	550	+17%
Incoming orders in units	16,800	19,600	+17%
Production in units	15,100	18,200	+21%
Net sales in € million	432	483	+12%
Orders on hand in € million	610 12/31/2016	682 02/28/2017	+12%

The Jungheinrich Business Model

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.

The Jungheinrich Group's Growth Strategy

World Material Handling Equipment Market

Expected Development in 2017

Source: WITS, SIMHEM; based on incoming orders in units.

World:

The world material handling equipment market is expected to continue to grow, albeit with less momentum than in 2016.

Europe:

• Market volume is likely to expand.
• An increase in mid-range, single-digit percentage territory is anticipated, also with less momentum than in 2016.

Asia:

Solid market growth should be achievable.

North America:

• The positive demand for battery-powered material handling equipment may well continue.
• The shrinkage of the market for IC engine-powered counterbalanced trucks could be curtailed by an economy posting decent growth.

Jungheinrich Group: Forecast for the Financial Year 2017 Positive Business Trend expected

	Forecast 2017
Incoming orders in € billion	3.4 - 3.5
Net sales	3.3 -
in € billion	3.4
EBIT	250 -
in € million	260
EBIT ROS	In
in %	the order of last year's level (7.6)
EBT	230 -
in € million	245
EBT ROS	In
in %	the order of last year's level (7.0)
Net credit in € million	Mid-range, double-digit million euro territory
ROCE	In
in %	the order of last year's level (17.8)
Market share in Europe in %	Slight improvement over 2016 (21.6)

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, changes within the material handling equipment sector as well as exchange and interest-rate fluctuations. Therefore, no responsibility is taken for forwardlooking statements made in this presentation.