Jungheinrich AG

Investor Presentation • Aug 27, 2020

IR Presentation H1 2020

Hamburg, 27 August 2020

HIGHLIGHTS

BUSINESS DEVELOPMENT H1 2020

STRATEGIC OUTLOOK

Jungheinrich at a glance

Jungheinrich key figures 2019

Regions and business fields

Business model

HIGHLIGHTS

BUSINESS DEVELOPMENT H1 2020

STRATEGIC OUTLOOK

Highlights of H1 2020

H1 2020

► Jungheinrich has performed well in a tense market environment resulting from the COVID-19 crisis.

► The value of incoming orders came to €1.8 billion in the first half of 2020, despite restricted access to customers.

► The decline in revenue was moderate, with a drop of 8 per cent to €1.8 billion.

► Profit or loss reached a respectable level of €60 million.

► Net debt was reduced from €172 million to €36 million.

► Cash flow from operating activities doubled to €201 million.

► A new forecast for 2020 was released.

Coronavirus – Jungheinrich's status – Protecting employees and customers, and safeguarding our delivery capability are our highest priorities

► Central crisis team and local crisis teams in organisational units and factories identify upcoming risks at an early stage and coordinate all measures in a timely manner to keep the impact of the COVID-19 pandemic on Jungheinrich as minimal as possible.

• ► In particular, Jungheinrich has taken measures to minimise the impact of the pandemic on supply chains and production. Production at all Jungheinrich plants continues at an adjusted level and supply chains remain largely intact.
• ► In the financial services business, the scope of customer-specific payment agreements is very small against the backdrop of the COVID-19 crisis. The refinancing lines remain available as before. Customer defaults on receivables remain at a low level.
• ► Jungheinrich has a very healthy statement of financial position and a solid liquidity reserve.

Global market for material handling equipment declines by 7%, European market shrinks by 16%

Source: WITS, based on incoming orders

The decline in the global market volume was driven by the slump in demand for counterbalanced trucks

Worldwide

Market volume in thousand units	H1 2020	H1 2019	Change %
Warehousing equipment	335	351	–4.6
thereof Class II	59	66	–10.6
thereof Class III	276	285	–3.2
Counterbalanced trucks	371	407	–8.8
thereof Class I	108	124	–12.9
thereof Class IV/V	263	283	–7.1
Total	706	758	–6.9

Table contains rounding differences

Class I	Battery-powered counterbalanced trucks
Class II	Narrow-aisle and reach trucks
Class III	Low- and high-lift trucks and order pickers
Class IV/V	IC engine-powered counterbalanced trucks

Source: WITS, based on incoming orders

v

Market volume in Europe hit hard by COVID-19 pandemic in Q2 2020

	2019				2020		2018	2019
EUROPE	 Q1	 Q2	 Q3	 Q4	 Q1	 Q2	 FY	 FY
	–4.3%	–9.8%	–8.4%	–3.2%	–5.4%	–28.1%	+11.4%	–6.4%

2018	2019
A FY	V FY
+11 4%	-6.4%

2019			2020		2018	2019
 Q1	 Q2	 Q3	 Q4	 Q1	 Q2	 FY	 FY
+11.1%	–4.5%	+4.2%	+26.9%	–21.8%	+40.6 %	+15.2 %	+8.5%

CHINA	 Q1	 Q2	 Q3	 Q4	 Q1	 Q2	 FY	 FY
	+11.1%	–4.5%	+4.2%	+26.9%	–21.8%	+40.6 %	+15.2 %	+8.5%
	2019				2020		2018	2019
NORTH AMERICA	 Q1	 Q2	 Q3	 Q4	 Q1	 Q2	 FY	 FY

2019				2020		2018	2019
 Q1	 Q2	 Q3	 Q4	 Q1	 Q2	 FY	 FY
–22.1%	–9.0%	+1.9%	–0.8%	+5.4%	–15.9%	+3.9%	–7.8%

	2019				2020		2018	2019
WORLD	 Q1	 Q2	 Q3	 Q4	 Q1	 Q2	 FY	 FY
	–2.6%	–7.6%	–2.4%	+5.1%	–9.4%	–4.5%	+10.3%	–2.0%

2018	2019
A FY	V FY
+10.3%	-2.0%

Change in % to the same period of the previous year

Incoming orders in Q2 2020 affected to a considerable degree by COVID-19 pandemic (Q1 2020 still on par with previous year's level)

Incoming orders, in € million

Unit figures affected by lower demand and clear reduction in orders for own short-term rental fleet

Incoming orders, in thousand units

Moderate drop in Group revenue

Revenue, in € million

► Main cause: lower revenue in new truck business (€–180 million) due to lower production volume.

Decline in EBIT largely due to lower capacity utilisation at production plants

EBIT, in € million

• ► EBIT includes €5 million in impairment losses on goodwill.
• ► Cost-cutting measures are bearing fruit.
• ► The expenditure for strategic projects to optimise processes and improve efficiency and digitalisation have not been reduced.
• ► The previous year's figures have been adjusted and take into consideration the impacts on earnings reported in the interim statement as of 30 September 2019 and which almost balanced each other out.

Investment volume reduced considerably

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

expansion of production of lithium-ion batteries, expansion

of stacker crane plant (Hungary)

Net debt reduced significantly, cash flow doubled

Net debt, in € million Cash flow from operating activities, in € million

► The €136 million improvement is first and foremost the result of measures to reduce working capital and the decreased supply of new trucks to the short-term rental fleet.

► Doubling of cash flow due to decline in cash outflow for additions to trucks for short-term rental and lease and receivables from financial services (€–125 million).

Drop in number of employees

in full-time equivalents

Employees in the Group

• ► This reduction is largely in the sales organisation.
• ► In addition, the number of temporary staff was reduced by 109 to 226 employees.

Jungheinrich Group: new forecast for 2020 released

2020

	July 2020*
Incoming orders in € billion	3.40 to 3.60
in € billion Revenue	3.40 to 3.60
in € million EBIT	130 to 180
EBIT ROS in %	3.8 to 5.0
in € million EBT	105 to 155
EBT ROS in %	3.1 to 4.3
in € million Net debt	considerably < 50
in % ROCE	8 to 12
Market share in Europe in %	slight improvement against 2019 (20.2%)

* The forecast for the 2020 financial year published on 18 December 2019 and confirmed with the publication of the 2019 annual report on 18 March 2020 did not cover the consequences of the COVID-19 pandemic and was withdrawn at the end of April 2020 due to the uncertainty regarding the expected consequences of the pandemic on Jungheinrich's further business development.

HIGHLIGHTS

BUSINESS DEVELOPMENT H1 2020

STRATEGIC OUTLOOK

Highly Dynamic and Volatile Markets Global Trends

Digitalisation plays an essential role in relation to the transformation processes and competitiveness of all companies

Disruptive technologies offer new opportunities e.g. intelligent interconnectivity and automation

An increasing sustainability awareness drives topics such as electrification and leads to stricter regulations

Urbanisation and e-commerce are driving micro-fulfilment growth

Increase in trade conflicts and protectionism

Sources: BCG Forecast (2017/2020) Electrification, Fraunhofer ISI (2015) Product Roadmap Lithium-ion Batteries 2030, Interact Analysis (2019), McKinsey Report (2018) Disruptive Forces in the industrial sectors

Electric Power as Tradition and Future

The Future Is Yellow

Jungheinrich's Top Strategic Guiding Principles Clear Direction for the Future

Jungheinrich generates, with all internal and external business activities, an added value for the end customer

Jungheinrich radically and sustainably reduces waste along the entire process chain (end-to-end)

Jungheinrich invests in future technologies as an innovation leader

Jungheinrich manifests its position as the industry leader for sustainable solutions

Jungheinrich develops new business models based on existing strengths and/or customer requirements

Jungheinrich places increased emphasis on strategic partnerships and acquisitions as success factors xxxxxxx

Jungheinrich Creates Sustainable Value for all Stakeholders Strategic Outlook

Jungheinrich Focusses on Topics in Line with Global Trends Group Priorities

Multiple Areas of Action within Group Priorities

Digitalisation

• Digital products
• Digital business models
• e-Commerce
• IT Factory

Automation

• Automated Guided Vehicles (AGV)
• Automated Warehouses (AS/RS)

Energy Systems

• Lithium-Ion technology
• Energy Solutions for material handling equipment
• Electrification of industrial machines

Sustainability

• Environment & Energy
• Transparency & responsibility in the supply chain
• Economic responsibility
• Secure & good jobs
• Environmentally friendly & safe products

Efficiency

program (4JU)

excellence technology (N-Ex-T)

Digital end-to-

(DEEP)

end processes

Efficiency

Network

Global

• Europe
• China
• North America

Footprint

27

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, including the consequences of the further development of the COVID-19 pandemic, within the material handling equipment sector, as well as changes to exchange rate and interest rates. No responsibility is therefore taken for the forward-looking statements in this presentation.

NOTES

Market volume for material handling equipment 2015 to 2019 in thousand units

Global ranking of material handling equipment: Jungheinrich among Top 3 worldwide

Group revenue 2018, in € billion

Jungheinrich key data (I)

in € million	2015	2016	2017	2018	2019
Incoming orders	2,817	3,220	3,560	3,971	3,922
Group revenue	2,754	3,085	3,435	3,796	4,073
thereof Germany	701	753	851	900	966
thereof abroad	2,053	2,332	2,584	2,896	3,107
EBIT	213	235	259	275	263
EBIT ROS	7.7%	7.6%	7.5%	7.2%	6.4%
Capital employed1	1,187	1,318	1,497	1,717	1,917
ROCE2	17.9%	17.8%	17.3%	16.0	13.7*
R&D expenditure	55	62	77	84	86
Capital expenditure3)	87	59	88	106	157

*Calculated due to accounting changes from 01/01/2019 (IFRS 16 "Leases") (prior-year figures not adjusted)

1) Shareholders' equity + Financial liabilities – Cash and cash equivalents and securities + Provisions for pensions and long-term personnel obligations

2) EBIT / Employed interest-bearing capital x 100

3) Property, plant and equipment, and intangible assets excluding capitalised development expenses and right-of-use assets ³³

Jungheinrich key data (II)

in € million	2015	2016	2017	2018	2019
Equity ratio (Intralogistics)	48%	48%	48%	46%	46%
Equity ratio (Group)	31%	31%	30%	29%	28%
Net debt1)	–75	–56	7	108	172*
Tax ratio	31%	28%	25%	29%	27%
Profit or loss	138	154	182	176	177
Employees (FTE3)	13,962	15,010	16,248	17,877	18,381
thereof Germany	6,078	6,511	6,962	7,378	7,635
thereof abroad	7,884	8,499	9,286	10,499	10,746
Dividend per preferred share	€0.402)	€0.44	€0.50	€0.50	€0.48

*Calculated due to accounting changes from 01/01/2019 (IFRS 16 "Leases") (prior-year figures not adjusted)

1) Net debt = Financial liabilities – cash and cash equivalents and securities

2) Figures adjusted retroactively due to the 1:3 stock split implemented on 22 June 2016

3) in full-time equivalents 34

Broad customer base

Jungheinrich share: Broad coverage

Key figures for the share	2015*	2016	2017	2018	2019
Earnings per preferred share	€1.36	€1.52	€1.80	€1.73	€1.75
Dividend per preferred share	€0.40	€0.44	€0.50	€0.50	€0.48
Dividend payout	€39 million	€44 million	€50 million	€50 million	€48 million
Distribution ratio	28%	29%	28%	28%	27%

* Figures adjusted retroactively due to the 1:3 stock split implemented on 22 June 2016.

Financial calendar

Date	Event
18/03/2020	Balance sheet press conference
18/03/2020	Phone conference FY2019
08/05/2020	Interim statement as of 31/03/2020
11/08/2020	Interim report as of 30/06/2020
27/08/2020	2020 Annual General Meeting (virtual)
01/09/2020	Dividend payment
10/11/2020	Interim statement as of 30/09/2020

General information

Subscribed capital: €102 million subdivided into 54,000,000 no-par-value ordinary shares 48,000,000 no-par-value preferred shares (listed)

Securities identification numbers (preferred shares): ISIN: DE0006219934 WKN: 621 993

Stock exchanges: Frankfurt and Hamburg and all other German stock exchanges

Segment: Sector: Stock index: Prime Standard Industry SDAX

Ticker: Reuters JUNG_p.de Bloomberg JUN3 GR

Contact

Andrea Bleesen Head of Investor Relations Jungheinrich Aktiengesellschaft Friedrich-Ebert-Damm 129 · 22047 Hamburg Tel +49 40 6948-3407 · Fax +49 40 6948-753407 andrea.bleesen@jungheinrich.de · www.jungheinrich.com