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Jungheinrich AG

Investor Presentation Jan 1, 2023

238_ip_2023-01-01_7a48242f-d43e-46d5-a161-1c4f5d7101ff.pdf

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Jungheinrich AG Capital Market Presentation

Hamburg, January 2023

1 Jungheinrich at a glance

General conditions 2

Key figures Q1–Q3 2022 & outlook

Strategy 2025+ 4

5

3

Additional information

Jungheinrich: what sets us apart

Integrated, crisis-resistant business model

Customer centricity – all services from a single source

One-brand strategy – Jungheinrich stands for quality across the entire product and service spectrum

Comprehensive, complete life cycle management

Measurable added value and tailored solutions for the customers

Complete solutions for warehouse logistics

Electric counterbalanced trucks

Energy systems

Warehouse equipment

Fully automated systems

Partially automated systems

Manual systems

Broad intralogistics range from a single source

New truck business

  • Development, manufacture and sale of new forklift trucks
  • Planning and realisation of automated systems
  • Lithium-ion batteries
  • Development and manufacture of digital products
  • Stacker cranes and load-handling equipment
  • Operating and office equipment

Short-term rental

  • Rental periods: generally 1 day to 12 months
  • Control over degree of capacity utilisation

Used equipment

  • Marketing of used equipment (leasing, short-term rental fleet and trade-ins)
  • Reconditioning of forklift trucks

After sales

  • 8,081 employees in after-sales services worldwide, of which 5,707 after-sales service technicians
  • Revenue (2021) >€1 billion

Financial services enable long-term customer loyalty

1)2021 financial year

Strong position in Europe, customer loyalty-oriented revenue structure

At a glance General conditions Key figures & outlook Strategy 2025+ Additional information

Our pillars of resilience

Attractive market growth & resilient customer structure

Market & customers

Sources: Material handling equipment – WITS / FEM, Interact Analysis Global Forklift Market 2021; automation – Interact Analysis Warehouse Automation 2022

After-sales & financial services ensure long-term customer loyalty

Business model

After-sales services

revenue in € billion

>8,300 employees 24/7 service & support
globally (~44 % of expansion for
the total workforce) automated systems
Expanding our expertise in
the field of automation
Artificial intelligence and
big data for predictive
maintenance

Financial services contracts on hand in items and € million

Number of new trucks sold via financial services: > 40 %

Financing power & strong balance sheet safeguard implementation of strategy 2025+

~

6 billion
32%
>

500 million
14.4%

Values as of H1 2022

Capital allocation in line with strictly defined criteria, based on conservative financing

1 Jungheinrich at a glance

General conditions 2

Key figures Q1–Q3 2022 & outlook

Strategy 2025+ 4

5

3

Additional information

Jungheinrich is one of the world's leading solutions providers for the intralogistics sector

1 6
2 7
3 8
4 9
5 10

Sources: Top 20 Lift Truck Suppliers 2022 – Modern Materials Handling; Top 20 Systems Suppliers 2022 – Modern Materials Handling; KION annual report; Capital IQ

Outlook & challenges

Supply chain Cybercrime Sustainability New energy systems

Key factors: Successful and resilient risk management

Supply chains successfully secured, despite extreme materials shortages

Consistent supplier risk management via daily monitoring of supply scopes, capacities, delivery times and routes – additional expansion with alternative suppliers and material portfolios

Stability in transport logistics and parts supply for production successfully guaranteed thanks to extensive procurement market management and supplier management

Continually positive management of the multiple crises

1 Jungheinrich at a glance

General conditions 2

Key figures Q1–Q3 2022 & outlook

Strategy 2025+ 4

5

3

Additional information

Q1–Q3 2022 – At a glance

Business development satisfactory, despite ongoing challenges in supply of materials and considerable increases in cost of materials and logistics

Economic uncertainties remain severe as a result of Russia-Ukraine war

At € 3,397 million, revenue up 12 % against previous year; incoming orders on a par with previous year at € 3,594 million

Solid development in EBIT at € 266 million (previous year: € 258 million), slight decrease in EBIT-ROS to 7.8 % (previous year: 8.6 %)

At € −273 million, free cash flow markedly negative (previous year: € +137 million) due to sharp rise in working capital

Forecast for 2022 confirmed

Incoming orders on a par with previous year

Good revenue growth compared with previous year despite ongoing limited availability of production materials

Supply chain management remains successful under extremely difficult circumstances

Solid result under challenging circumstances

22

(previous year: +89)

Forecast for 2022 confirmed

2022 forecast September 20221
in € billion
Incoming orders
4.6 to 4.9
in € billion
Revenue
4.6 to 4.8
in € million
EBIT
340 to 380
EBIT ROS in % 7.2 to 8.0
EBT
in € million
305 to 345
EBT ROS in % 6.5 to 7.3
in %
ROCE
14.0 to 17.0
cash flow in €
million
Free
significantly negative

Largely intact supply chains and no considerable production interruptions

Serious production restrictions due to gas shortage cannot be ruled out

1 Ad-hoc announcement from 23/09/2022

1 Jungheinrich at a glance

General conditions 2

Key figures Q1–Q3 2022 & outlook

Strategy 2025+ 4

5

3

Additional information

2025 targets confirmed and expanded despite geopolitical challenges

Our six strategic fields of action

Automation: Expansion through partnerships and M&A

Automated systems & warehouse equipment global market volume in € billion

Mobile robots global market volume in € billion

Sources: Jungheinrich assumptions based on Interact Analysis (Warehouse Automation 2021), Interact Analysis (Mobile Robots 2021), LogisticsIQ, STIQ, MarketsandMarkets

Drivers of automation

Cost pressure

Lower process costs, boost efficiency

Skilled labour shortage

Automated transport, storage and order picking, as skilled workers and forklift drivers are available in limited numbers

By 2030, up to 30 % of our global fleet of material handling equipment will be automated.

Top 10 Key Account

Digitalisation

Increase process safety and transparency

Advancing digitalisation

Cybercrime

New
ISO 27001 TISAX
Successful
certification
Successful assessment
for automotive customers

New IT plant

New hybrid cloud foundation for global interconnectivity of people, machines and systems Digital real-time partnership with customers and partners with the highest degree of security and flexibility

Annual external cybersecurity maturity assessment

Realignment of the internal security organisation and set-up of the Security Operations Center 24/7

Completion of IT plant: end of 2023

Advancing digitalisation

Fleet management system

Expansion into a cloud-based telematics platform

52 million data points per day

Available in 18 countries and further roll-out

2025: > 400,000 trucks digitally connected

Migration of all customers from former to new system scheduled for the end of 2023

Introduction of a new pricing schedule and new bundles (Finance, Access, Productivity, Safety and Safety Plus) from April 2022

DEEP (Digital End-to-End Processes) programme

Chomutov plant (Czech Republic)

Expansion of production network, production start mid-2023

Project budget around €60 million

37,000 square metres of production space, creation of more than 350 new jobs

Boosting production efficiency

Construction of one of the world's most cutting-edge manufacturing facilities for reach trucks with fully digitalised assembly line

Focus on sustainable production & efficiency, including cutting-edge paintwork line, heat pump, special insulation and rainwater utilisation system

Business service center: contributing to boosting efficiency, flexibility and internationalisation

Jungheinrich digital solutions s.L.U. Spain

IT services and development of digital products

Jungheinrich business services Croatia d.O.O.

Services related to software and hardware development

Jungheinrich business services Romania s.R.L.

Purchasing for production and after-sales services, human resources and accounting services

Expansion of our global presence

Strong trend towards lithium-ion technology

Global market for material handling equipment (in units)

Development of proportion of drive technologies

Jungheinrich strategic target: 70 % lithium-ion equipment ratio in 2025

Gradual switch-over of the product portfolio

Warehousing equipment Counterbalanced trucks

Our sustainability understanding

Creating sustainable value

As a family company, we look back over generations. The focus on short-term profit corresponds neither to our corporate canon of values nor to our entrepreneurial identity.

Instead, we want to help shape the world where we all live and work in a positive way. As a sustainability enabler, our products & solutions contribute towards bringing about a sustainable transformation in intralogistics and helping our customers to achieve their climate targets.

Our commitment & engagement:

Sustainability is part of our DNA

Our sustainability targets

Climate-neutrality

Climate-neutral operations by 2030 (Scope 1 & 2)

Reduction of resource & energy consumption 0 % landfill waste in plants by 2025

Sustainable products & solutions for intralogistics

Boost revenue with sustainable products in line with the EU Taxonomy

Promoting the health & safety of our employees

Improvement of lost time injury rate to 12.5 by 2025

Sustainable procurement

80 % of globally relevant procurement volume from sustainable suppliers by 2025

High ratings as proof of our sustainability initiatives EcoVadis / CDP / MSCI ESG Ratings / ISS ESG

Our central target: Creating sustainable value

PROFITABILITY

Margin focus | Cash is king | Dividend continuity

EFFICIENCY

Customer centricity | Lean processes | Easy to deal with

SUSTAINABILITY

Creating value for all | Deep entrepreneurial anchorage | Contribution to society

Disclaimer

The explanations in this presentation are forward-looking statements that are based on the company management's current expectations, assumptions and assessments for future developments. Such statements are subject to risks and uncertainty that are largely beyond the company's control. This includes changes in the overall economic situation, including impacts from geopolitical conflicts, debt issues, the further course of the Corona pandemic, within the intralogistics sector, in materials supply, the availability and price development of energy and raw materials, demand in important markets, developments in competition and regulatory frameworks and regulations, exchange and interest rates and the outcome of pending or future legal proceedings.

Should these or other uncertainties or unknown factors apply or the assumptions on which these statements are based prove false, actual results may deviate significantly from the results stated or implied. No responsibility is therefore taken for forward-looking statements. Without prejudice to existing capital market obligations, there is no intention nor do we accept any obligation to update forward-looking statements.

1 Jungheinrich at a glance

General conditions 2

Key figures Q1–Q3 2022 & outlook

Strategy 2025+ 4

5

3

Additional information

Dividend policy: Distribution ratio between 25% and 30%

Long-term performance of the Jungheinrich share

2017 2018 2019 2020 2021
Dividend yield preferred share in % 1.3 2.2 2.2 1.2 1.5
Market capitalisation
in € million
4,004 2,330 2,193 3,733 4,578
Share price performance in % 44 –42 –6 70 23
Investment period 10 years 5 years
Investment date 01/01/2012 01/01/2017
Portfolio value at end of 2021 €78,353 €16,877
Average return p. a. 22.9% € 11.1% €
Comparable return of German share
indices p.a.
DAX 10.1% 6.5%
MDAX 14.4% 9.4%
SDAX 13.9% 11.2%

Please note: based on an initial investment of €10 thousand and assuming that annual dividends received were reinvested in additional preferred shares

Jungheinrich share: Key figures and analyst coverage

Key figures for the share 2017 2018 2019 2020 2021
Earnings per preferred share €1.80 €1.73 €1.75 €1.49 €2.62
Dividend per preferred share €0.50 €0.50 €0.48 €0.43 €0.68
Total dividend distribution €50 million €50 million €48 million €43 million €68 million
Distribution ratio 28% 28% 27% 28% 26%

Quarterly figures at a glance

Jungheinrich key figures 2017–2021 (I)

in € million 2017 2018 2019 2020 2021
Incoming orders 3,560 3,971 3,922 3,777 4,868
Group revenue 3,435 3,796 4,073 3,809 4,240
thereof Germany 851 900 966 917 1,014
thereof abroad 2,584 2,896 3,107 2,892 3,226
EBIT 259 275 263 218 360
EBIT ROS 7.5% 7.2% 6.4% 5.7% 8.5%
ROCE1) 10.8% 20.2%
R&D expenditure 77 84 86 89 102
Capital expenditure2) 88 106 157 75 71

1) EBIT for the Intralogistics segment in % of the segment's average capital employed

2) Property, plant and equipment and intangible assets without capitalised development expenditure and right-of-use assets

Jungheinrich key figures 2017–2021 (II)

in € million 2017 2018 2019 2020 2021
Equity ratio
(Intralogistics)
48% 46% 46% 45% 48%
Equity ratio
(Group)
30% 29% 28% 29% 31%
Net credit (–)
/net debt (+) 1)2)
7 108 172 –194 –222
Tax ratio 25% 29% 27% 25% 23%
Profit or loss 182 176 177 151 267
(FTE3))
Employees
16,248 17,877 18,381 18,103 19,103
thereof Germany 6,962 7,378 7,635 7,577 7,995
thereof abroad 9,286 10,499 10,746 10,526 11,108
Dividend per preferred share €0.50 €0.50 €0.48 €0.43 €0.68

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

2) Determined according to accounting changes as of 01/01/2019 (IFRS 16 "Leases"). (Values from the previous year have not been adjusted.)

3) In full-time equivalents, always on 31/12

Board of Management team

Dr Lars Brzoska Chairman of the Board of Management

2014–today Jungheinrich AG

2010–2014 Terex Material Handling & Port Solutions AG | Board of Management

2003–2010 Gildemeister AG | Managing Director

Christian Erlach Member of the Board of Management Sales

2007–today Jungheinrich AG

2001–2007 ONE GmbH, Austria | Head of Direct Sales

1985–2001 Kerion Fördermittel Ges. m.b.H. | Head of Sales

Dr Volker Hues Member of the Board of Management Finance

2009–today Jungheinrich AG

2000–2009 CWS-boco International GmbH | CFO

1998–2000 boco Group | CFO

1990–1998 Franz Haniel & Cie. | Investment controlling

Sabine Neuß Member of the Board of Management Technics

2020–today Jungheinrich AG

2018–2019 Kelvion Holding GmbH | COO

2016–2018 KION Group AG | Head of Production Systems

2013–2018 Linde Material Handling GmbH (KION Group AG) | COO TRW Automotive

2010–2013 Safety Systems GmbH | Managing Director, Product line manager

Remuneration system

Basic Short-term Long-term
remuneration variable remuneration variable remuneration

Fixed ~40 to 50 %, non-performance
related

remuneration paid as monthly
payments

Ancillary benefits (~1 to 5 %):
Primarily company car and insurance
policies

Pension (~5 to 15 %):
Defined benefit commitment for
existing members and generally
fixed annual maintenance payment for
newly appointed members

Target bonus (~15 to 25%)

45 %
Group EBT return on sales
35 %
Increase in Group revenue
20 %
Lithium-ion equipment ratio

Discretionary factor:
0.8 to 1.2

Payment limit:
150 % of target amount

Term: 1 year

Virtual performance share plan
(~20 to 30 %)

60 %
Return on capital employed
(ROCE)
20 %
Relative total shareholder
return (TSR) compared with an
individual peer group
20 %
sustainability target

Discretionary factor:
0.8 to 1.2

Payment limit:
180 % of target amount

Term: 3 years

2023 financial calendar and IR contact

Financial calendar

Date Events
31/03/2023 Balance sheet press conference (virtual)
31/03/2023 Analyst conference (virtual)
08/05/2023 Interim statement as of 31/03/2023
11/05/2023 Annual General Meeting
16/05/2023 Dividend payment
10/08/2023 Interim report as of 30/06/2023
10/11/2023 Interim statement as of 30/09/2023

IR contact

Andrea Bleesen Head of Corporate Investor Relations

Jungheinrich Aktiengesellschaft Friedrich-Ebert-Damm 129 22047 Hamburg Germany

Tel.: +49 (0)40 6948 3407

[email protected] www.jungheinrich.com

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: Prime Standard Sector: Industry Stock index: MDAX

Ticker: Reuters JUNG_p.de Bloomberg JUN3 GR

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