Jungheinrich AG

Quarterly Report • Aug 8, 2017

Interim report as of 30 June 2017

Key figures at a glance

Jungheinrich Group		Q2 2017	Q2 2016	Change %	H1 2017	H1 2016	Change %	FY 2016
Incoming orders	million €	881	871	1.1	1,750	1,626	7.6	3,220
	units	32,300	29,200	10.6	63,300	56,700	11.6	109,200
Production of material
handling equipment	units	28,500	27,500	3.6	57,600	51,500	11.8	106,300
Net sales	million €	843	764	10.3	1,634	1,431	14.2	3,085
thereof Germany	million €	n.a.	n.a.	–	399	350	14.0	753
thereof abroad	million €	n.a.	n.a.	–	1,235	1,081	14.2	2,332
Foreign ratio	%	n.a.	n.a.	–	76	76	–	76
Orders on hand 30 June/31 December	million €				708	671	5.5	610
Earnings before interest and taxes (EBIT)1	million €	67.3	64.4	4.5	123.7	110.2	12.3	235.0
EBIT return on sales (EBIT ROS)1	%	8.0	8.4	–	7.6	7.7	–	7.6
EBIT return on capital employed (ROCE)1, 2	%	n.a.	n.a.	–	17.5	16.6	–	17.8
Earnings before taxes (EBT)1	million €	63.8	60.4	5.6	116.6	100.6	15.9	215.7
EBT return on sales (EBT ROS)1	%	7.6	7.9	–	7.1	7.0	–	7.0
Net income1	million €	45.9	44.0	4.3	83.9	72.3	16.0	154.4
Capital expenditures3	million €	n.a.	n.a.	–	27.6	23.8	16.0	59.0
Research and development expenditures	million €	n.a.	n.a.	–	35.5	29.2	21.6	62.1
Balance sheet total 30 June/31 December1	million €				3,681	3,404	8.1	3,643
Shareholders' equity 30 June/31 December1	million €				1,153	1,039	11.0	1,114
thereof subscribed capital	million €				102	102	–	102
Employees 30 June/31 December	FTE4				15,487	14,432	7.3	15,010
thereof Germany	FTE4				6,586	6,128	7.5	6,511
thereof abroad	FTE4				8,901	8,304	7.2	8,499

Key figures for the Jungheinrich share

		30/06/2017	30/06/2016	31/12/2016
Earnings per preferred share1	€	0.83	0.72	1.52
Shareholders' equity per share1	€	11.30	10.19	10.92
Share price5
High	€	34.71	29.27	30.92
Low	€	26.00	21.17	21.17
Close	€	32.01	27.02	27.26
Market capitalisation	million €	3,265	2,756	2,781
Stock exchange trading volume6	million €	453	457	873
P/E ratio1, 7	factor	19.3	18.8	17.9
Number of shares8	million shares	102.0	102.0	102.0

1 Comparative figures for 2016 have been adjusted in line with IFRS 3 due to the classification and valuation of customer leases as part of the final purchase price allocation for NTP Forklifts Australia (NTP) acquired in November 2015.

2 EBIT as a percentage of interest-bearing capital employed9 (cut-off date), EBIT annualised

3 Tangible and intangible assets without capitalised development expenditure

NB: The tables in this report may contain rounding differences.

4 FTE = Full-time equivalents

5 Xetra closing price 6 Xetra and Frankfurt

7 P/E = Closing price/earnings per preferred share

8 Divided into 54.0 million ordinary shares and 48.0 million preferred shares

9 Shareholders' equity + financial liabilities – liquid assets and securities+ provisions for pensions and non-current provisions for personnel

Jungheinrich share

The relevant domestic share indices were buoyant between January and June 2017. The DAX gained 7 per cent and the MDAX rose by a good 10 per cent in the first half of 2017. The positive mood on capital markets and the related share price increases were driven mainly by the generally solid global economy, fast growth in Europe and encouraging economic data from China.

In the reporting period the Jungheinrich share also performed very well, rising by 17 per cent to reach an all-time high of €34.71 on 4 May 2017. Its low for the first half of 2017 was €26.00 on 23 January 2017.

As of 30 June 2017 the share traded at €32.01. On this date the company's market capitalisation was €3,265 million (31/12/2016: €2,781 million).

A resolution was passed at the Annual General Meeting of Jungheinrich AG to pay a dividend for the 2016 financial year of €0.44 per preferred share and €0.42 per ordinary share. For the preferred share this corresponds to an increase of 10 per cent on the previous year. The total dividend distribution came to €44 million.

Share price development H1 2017

Jungheinrich DAX MDAX

1 All figures indexed to the Jungheinrich share.

Interim group management report

• Strong global market growth, very good performance in core European market
• Net sales up by 14 per cent on last year
• Board of Management raises forecast for incoming orders and net sales
• EBIT expected to be at the upper end of the forecast range

Economic environment

Growth rates for selected economic regions

Gross domestic product in %	Forecast 2017	2016
World	3.5	3.2
USA	2.1	1.6
China	6.7	6.7
Eurozone	1.9	1.8
Germany	1.8	1.8

Source: IMF (as of July 2017)

Macroeconomic situation

The global economy is expected to show solid growth in 2017. The USA should have a stronger impact than in the previous year and be among the growth drivers, alongside China. Forecast economic expansion in the eurozone of 1.9 per cent is again very robust. From Jungheinrich's perspective, the economic conditions in this area are very important since 87 per cent of consolidated net sales was generated here in 2016. The German economy is set to continue its expansion. In June 2017, the ifo business climate index, which is considered to be a leading indicator for Germany's economic performance, reached its highest level for many years at 115.1 points. The trade association Deutscher Maschinen- und Anlagenbau e.V. (VDMA) also raised its annual forecast for real engineering production in Germany for the current year from growth of 1 per cent to 3 per cent.

Development of the market for material handling equipment

The world market for material handling equipment performed very well from January to June 2017, with growth of 18 per cent. Strong growth in the first quarter continued into the second quarter of 2017. The driving force behind the significant year-on-year increase in market volume was demand from the Chinese market, which soared by 41 per cent. A sharp rise in orders for IC engine-powered counterbalanced trucks was behind these positive market developments. Demand in Europe rose by 12 per cent, with Western Europe up by 9 per cent and Eastern Europe up by 27 per cent, thanks to Russia.

Incoming orders

in thousand units	H1 2017	H1 2016	Change %
World	693.0	589.5	17.6
Europe	241.1	215.7	11.8
thereof Eastern Europe	37.4	29.4	27.2
Asia	283.8	221.1	28.4
thereof China	190.0	134.4	41.4
North America	125.5	116.5	7.7
Other regions	42.6	36.2	17.7

Sources: WITS (World Industrial Truck Statistics),

SIMHEM (Society of Indian Materials Handling Equipment Manufacturers).

Economic environment Business trend and earnings position

Market volume by product segment (world)

Incoming orders in thousand units

SIMHEM (Society of Indian Materials Handling Equipment Manufacturers)

Global demand in the warehousing equipment product segment increased by 16 per cent, which represents almost 42 thousand forklifts. Some 40 per cent of the increase is attributable to Asia, mainly China, and around 40 per cent to Europe. The 15 per cent increase in global market volume of battery-powered counterbalanced trucks was driven by greater demand from Europe (+17 per cent) and above all by new orders from China (+34 per cent). Three quarters of the enormous increase of 21 per cent in demand for IC engine-powered trucks was due to significantly higher orders from China.

Business trend and earnings position

Key figures on the business trend

		H1 2017	H1 2016	Change %
Incoming orders	units	63,300	56,700	11.6
	million €	1,750	1,626	7.6
Production	units	57,600	51,500	11.8
Orders on hand 30 June	million €	708	671	5.5
Net sales	million €	1,634	1,431	14.2

Incoming orders and orders on hand

In the first half of 2017, incoming orders in new truck business, which include orders for both new forklifts and trucks for short-term hire, totalled 63.3 thousand trucks, up 12 per cent on the corresponding figure in the previous year (56.7 thousand trucks). Truck orders for the short-term hire fleet went up particularly strongly.

Market volume by product segment (Europe)

Incoming orders in thousand units

By value, incoming orders for all business fields – new truck business, short-term hire and used equipment, and aftersales services – came to €1,750 million in the reporting period, which is 8 per cent above the previous year's figure of €1,626 million. Almost one quarter of the increase was due to higher demand for logistics system solutions.

Orders on hand for new truck business came to €708 million as of 30 June 2017, which is €37 million or 6 per cent higher than the previous year (€671 million). Compared with orders on hand of €610 million as of year-end 2016, it represents an increase of €98 million or 16 per cent. Orders therefore account for more than four months of production.

Production and net sales

57.6 thousand trucks were produced in the first six months of the current year. This is 12 per cent more than in the first half of 2016 (51.5 thousand trucks). Consolidated net sales of €1,634 million in the first half of 2017 was 14 per cent higher than in the previous-year period (€1,431 million). Net sales in Germany, the largest single market, rose by 14 per cent in the reporting period to €399 million (previous year: €350 million), with foreign net sales also up by 14 per cent at €1,235 million (previous year: €1,081 million). Net sales from outside Europe reached €195 million (previous year: €198 million). This represents 12 per cent of consolidated net sales (previous year: 14 per cent). Last year's net sales included a positive nonrecurring effect from the transfer of the short-term hire equipment of the Chinese Jungheinrich sales company to the joint venture with Heli (operating launch in Q2 2016). On a like-for-like basis, net sales from outside Europe would have risen by 13 per cent and its share of consolidated net sales would have been stable at 12 per cent. At 76 per cent, the percentage of net sales from abroad was at the same level as the previous year.

Business trend and earnings position

Net sales H1 2017 by region

New truck business was the main driver of the much higher consolidated net sales in the first half of 2017. At €944 million, it was €170 million or 22 per cent higher than in the same period last year (€774 million). It includes €251 million from the 'Logistics Systems' division, an increase of 44 per cent (previous year: €174 million), and €38 million from the 'Mail Order' division, up 19 per cent (previous year: €32 million). Net sales from short-term hire and used equipment came to €277 million (previous year: €281 million). Last year the transfer of the short-term hire trucks to the joint venture with Heli boosted net sales significantly. The short-term hire and used equipment business would have grown by 8 per cent on a like-for-like basis. After-sales services and financial services contributed substantially to the consolidated net sales growth, with increases of 8 per cent and 14 per cent respectively.

Breakdown of net sales

in million €	H1 2017	H1 2016	Change %
New truck business	944	774	22.0
Short-term hire and used equipment	277	281	–1.4
After-sales services	449	415	8.2
'Intralogistics' segment	1,670	1,470	13.6
'Financial Services' segment	390	343	13.7
Reconciliation	–426	–382	11.5
Jungheinrich Group	1,634	1,431	14.2

Earnings position

Earnings before interest and taxes (EBIT) rose by 12 per cent to €123.7 million in the first half of 2017 (previous year: €110.2 million) The EBIT return on sales (EBIT ROS) was

7.6 per cent, compared with 7.7 per cent1 in the previous-year period. EBIT for the first half of 2016 includes a positive non-recurring effect of €4.7 million from the deconsolidation of UK-based Boss Manufacturing Ltd. Much higher research and development costs were recognised in the reporting

Earnings trend

period, however.

in million €	H1 2017	H1 2016	Change %
Earnings before interest and taxes (EBIT)1	123.7	110.2	12.3
Financial income (loss)	–7.1	–9.6	26.0
Earnings before taxes (EBT)1	116.6	100.6	15.9
Income taxes	32.7	28.3	15.5
Net income1	83.9	72.3	16.0

Return on capital employed (ROCE) of 17.5 per cent in the first half of 2017 was up on the previous year (16.6 per cent1 ).

Financial income after six months came to €–7.1 million (previous year: €–9.6 million). Earnings before taxes (EBT) were €116.6 million in the first half of 2017 (previous year: €100.6 million1 ). This represents an increase of 16 per cent. EBT return on sales (EBT ROS) came to 7.1 per cent in the first half of 2017 (previous year: 7.0 per cent1 ). With a Group tax rate of 28.0 per cent (previous year: 28.1 per cent1 ), net income in the first half of 2017 were €83.9 million, or 16 per cent higher than a year ago (€72.3 million1 ). Earnings per preferred share in the reporting period were therefore €0.83 (previous year: €0.721 ).

1 Comparative figures for 2016 have been adjusted in line with IFRS 3 due to the classification and valuation of customer leases as part of the final purchase price allocation for NTP Forklifts Australia (NTP) acquired in November 2015.

Capital structure, financial and asset position

Capital structure

Overview of the capital structure

in million €	30/06/2017	31/12/2016	Change %
Shareholders' equity	1,153	1,114	3.5
Non-current liabilities	1,430	1,413	1.2
Provisions for pensions and similar obligations	214	223	–4.0
Financial liabilities	209	216	–3.2
Liabilities from financial services	852	820	3.9
Other liabilities	155	154	0.6
Current liabilities	1,098	1,116	–1.6
Other provisions	167	186	–10.2
Financial liabilities	104	104	0.0
Liabilities from financial services	352	335	5.1
Trade accounts payable	293	287	2.1
Other liabilities	182	204	–10.8
Balance sheet total	3,681	3,643	1.0

Shareholders' equity increased by €39 million to €1,153 million as of 30 June 2017 (31/12/2016: €1,114 million). This was due mainly to positive earnings, which were offset mainly by the dividend payment of €44 million (previous year: €39 million). A dividend of €0.42 was paid to holders of ordinary shares for the 2016 financial year in the second quarter of 2017 (previous year: €0.38) and a dividend of €0.44 to holders of preferred shares (previous year: €0.40). The equity ratio was 31.3 per cent (31/12/2016: 30.6 per cent). Provisions for pensions and similar obligations were €9 million down on year-end 2016 at €214 million (31/12/2016: €223 million).This was mainly due to positive effects from the valuation of German pension plans as of 30 June 2017, in turn resulting from a slight rise in the discount rate. Other current provisions were down by €19 million to €167 million (31/12/2016: €186 million), mainly due to the utilisation of provisions for personnel. The Group's non-current and current financial liabilities were reduced by €7 million to €313 million (31/12/2016: €320 million). Non-current and current liabilities from financial services of €1,204 million were up by €49 million on 31 December 2016 (€1,155 million) because more new contracts were financed. Other current liabilities fell by €22 million to €182 million (31/12/2016: €204 million), primarily due to a decline in income and value added tax liabilities as of the reporting date.

The Group's net credit position (liquid assets and securities less financial liabilities) of €56 million at year-end 2016 was followed by low net debt of €12 million as of 30 June 2017. The change is principally due to the increase in working capital and the expansion of the short-term hire fleet.

Financial position

Statement of cash flows

in million €	H1 2017	H1 2016
Net income	84	721
Depreciation and amortisation	136	123
Changes in trucks for short-term hire and trucks for lease (excluding depreciation) and receivables from financial services	–192	–1231
Changes in liabilities from financing trucks for short-term hire and financial services	47	10
Changes in working capital	–42	–86
Other changes	–23	–11
Cash flows from operating activities	10	–15
Cash flows from investing activities2	–36	–56
Cash flows from financing activities	–47	–28
Net cash changes in cash and cash equivalents2	–73	–99

1 Comparative figures for 2016 have been adjusted in line with IFRS 3 due to the classification and valuation of customer leases as part of the final purchase price allocation for NTP, acquired in November 2015.

2 Excluding the balance of payments for the purchase/proceeds from the sale of securities of €5 million (previous year: €14 million).

Cash flows from operating activities came to €10 million for the period of January to June 2017, an increase of €25 million compared with the previous-year period (€–15 million). Cash flows from net income, depreciation and amortisation were €25 million higher than in the comparable period in the previous year. Other positive effects of €44 million came from a smaller increase in working capital than a year ago. Higher cash payments, including financing, for short-term hire and leased equipment, as well as accounts receivable from financial services, reduced cash flow by an additional €32 million. Cash flows from investing activities were adjusted for the payments for the purchase of and proceeds from the sale of securities totalling €5 million (previous year: €14 million) that are included in this item. The resulting cash flows from investing activities of €–36 million in the reporting period were €20 million down on the previous year (€–56 million), due among other things to the contribution of capital stock paid for establishing the joint venture with Heli and the payment of the purchase price for the Chilean dealer.

Cash flows from financing activities of €–47 million in the reporting period were €19 million less than in the same period last year (€–28 million). This was mainly due to the smaller volume of long-term financial loans compared to the previous year.

Asset position

Overview of the asset structure

in million €	30/06/2017	31/12/2016	Change %
Non-current assets	2,080	2,016	3.2
Intangible and tangible assets	575	579	–0.7
Trucks for short-term hire and lease	767	721	6.4
Receivables from financial services	571	537	6.3
Other assets (including financial assets)	142	149	–4.7
Securities	25	30	–16.7
Current assets	1,601	1,627	–1.6
Inventories	481	396	21.5
Trade accounts receivable	553	600	–7.8
Receivables from financial services	222	215	3.3
Other assets	68	71	–4.2
Liquid assets and securities	277	345	–19.7
Balance sheet total	3,681	3,643	1.0

The balance sheet total increased by €38 million to €3,681 million as of 30 June 2017 (31/12/2016: €3,643 million).

The value of trucks for short-term hire was up by €31 million to €357 million due to the expansion of the short-term hire fleet (31/12/2016: €326 million). Thanks to the expansion of the financial services business the value of trucks for lease rose by €15 million to €410 million (31/12/2016: €395 million) and non-current and current receivables from financial services by €41 million to €793 million (31/12/2016: €752 million).

Inventories were up by €85 million to €481 million (31/12/2016: €396 million), whereby the increase of €55 million in finished products, goods and down payments in sales was primarily due to customer orders that had not yet been invoiced. Current trade accounts receivable sank by €47 million to €553 million (31/12/2016: €600 million). The high figure at year-end 2016 stemmed from the large volume of invoices sent in the last two months of the year. Liquid assets and current securities fell by €68 million to €277 million (31/12/2016: €345 million).

Research and development

Key figures for research and development

in million €	H1 2017	H1 2016	Change %
Total R&D expenditures1	35.5	29.2	21.6
thereof capitalised development expenditures	9.7	7.0	38.6
Capitalisation ratio in %	27.3	24.0	–
Amortisation of capitalised development expenditures	6.3	3.6	75.0
R&D costs1 according to the statement of income	32.1	25.8	24.4

1 R&D: Research and development

In the current financial year the Jungheinrich Group has expanded its research and development activities. They focused particularly on the energy efficiency of the drive systems, on digital products and the automation of material handling equipment. Assistance systems to increase the productivity and safety of material handling equipment were also a priority. Total research and development expenditures

Research and development Employees Financial services

Key figures for financial services

in million €	30/06/2017	30/06/2016	Change %
Original value of new contracts1	337	274	23.0
Original value of contracts on hand	2,342	2,120	10.5
Trucks for lease from financial services	491	4522	8.6
Receivables from financial services	793	7052	12.5
Shareholders' equity	87	78	11.5
Liabilities	1,476	1,320	11.8
Net sales1	390	343	13.7
EBIT1	5.6	5.22	7.7

1 1 Jan–30 Jun

2 Comparative figures for 2016 have been adjusted in line with IFRS 3 due to the classification and valuation of customer leases as part of the final purchase price allocation for NTP, acquired in November 2015.

As of 30 June 2017 the volume of contracts on hand was up by 10 per cent to 142.3 thousand units (previous year: 129.8 thousand units). This corresponds to an original value of €2,342 million (previous year: €2,120 million). In numeric terms, 40 per cent of new truck sales were sold with financial service agreements. Net sales was up by €47 million from €343 million in the first half of 2016 to €390 million in the first half of 2017. EBIT for the segment came to €5.6 million (previous year: €5.2 million).

Risk report

The early identification of risks and opportunities and the steps to be taken in response are an important element of corporate governance. The company uses a comprehensive system of risk management for its assessment of risk. The corresponding principles and procedures are defined in guidelines applicable across the Group. The functionality and effectiveness of the early-warning system for risks are an established part of regular reviews by the Corporate Audit department and the annual audits of the financial statements. Findings from these audits are reflected in the continuous development work on Jungheinrich's specific risk management system.

Since the 2016 annual report was published, no other significant risks have arisen beyond those described in detail there.

in the first half of 2017 came to €35.5 million (previous year: €29.2 million), a year-on-year increase of 22 per cent. The increase in important product development work meant that the capitalisation ratio rose to 27.3 per cent (previous year: 24.0 per cent). Research and development costs reported in the statement of income were €32.1 million (previous year: €25.8 million).

Risk report

The number of employees involved in development projects across the Group went up to an average of 514 in the reporting period (previous year: 451).

Employees

The workforce increased by 477 employees in the first half of 2017 compared with the end of December 2016. Most of the recruitment took place in the sales companies and mostly in Europe. The Group had a total of 15,487 employees as of 30 June 2017, of which 43 per cent worked in Germany and 57 per cent abroad. In addition, Jungheinrich employed 613 temporary staff across the Group as of 30 June 2017, of which more than 90 per cent worked in production plants in Germany.

Employees

in FTE

Financial services

For a general description of the 'Financial Services' segment we refer to the detailed comments in the 2016 annual report.

New long-term financial service agreements for €337 million were acquired in the first half of 2017 (previous year: €274 million). The eight countries with Jungheinrich financial services companies accounted for 74 per cent of the total by value (previous year: 76 per cent). France and Spain were the bestperforming regions, with increases of more than 30 per cent in new financial service agreements.

Events after the close of the first half of 2017

There were no reportable events after the close of the first half of 2017.

Future development of the Jungheinrich Group

Jungheinrich is assuming strong growth in the global market for material handling equipment in 2017. After the current year started on an unexpectedly dynamic note, we adjusted our estimates for the growth contributions of individual regions in the report on the first quarter of 2017. Now that the second quarter of 2017 has closed we are increasingly optimistic.

Market volume in Europe will continue to increase significantly. If the strong growth in Eastern Europe continues there is a chance that demand will go up by at least a high single-figure percentage. Double-digit growth is on the cards in Asia, even if current developments, namely the drastic increase in demand for IC engine-powered counterbalanced trucks, are expected to normalise again. Good demand for battery-powered counterbalanced trucks should continue in the North American market. Demand for IC engine-powered counterbalanced trucks is now robust and should contribute to further decent market growth.

We are increasing the forecast for the Jungheinrich Group for the current financial year in terms of incoming orders and consolidated net sales and substantiating our expectations for EBIT. Incoming orders should reach €3.45 billion to €3.55 billion. On current estimates, consolidated net sales should be within a range of €3.35 billion to €3.45 billion, with a contribution of more than €500 million from the 'Logistics Systems' division. EBIT should therefore be at the upper end of the forecast range of €250 million to €260 million. We continue to expect an EBIT ROS at around the same level as last year (7.6 per cent). In addition we are making a more precise EBT projection of €235 million to €245 million (2016: €216 million). The EBT ROS should also be on par with last year (7.0 per cent).

In terms of the net credit position and the ROCE we are confirming our current forecast. As of year-end 2017 we are expecting a net credit position in a medium double-digit million euro range (2016: €56 million) and ROCE at a similar level to last year (17.8 per cent).

Unforeseeable developments may cause the actual business trend to differ from expectations, assumptions and estimates by the management of Jungheinrich that are reproduced in this interim report. Factors which may lead to such differences include changes in macroeconomic conditions and changes in the material handling equipment sector, as well as fluctuations in exchange rates and interest rates. No responsibility can therefore be taken for the forward-looking statements in this interim report.

Interim consolidated financial statements

Consolidated statement of income

		Jungheinrich Group		Intralogistics1	Financial services
in million €	H1 2017	H1 20162	H1 2017	H1 2016	H1 2017	H1 20162
Net sales	1,634.2	1,430.7	1,243.7	1,087.9	390.5	342.8
Cost of sales	1,139.1	976.7	758.2	643.2	380.9	333.5
Gross profit on sales	495.1	454.0	485.5	444.7	9.6	9.3
Selling expenses	296.4	282.1	292.4	278.0	4.0	4.1
Research and development costs	32.1	25.8	32.1	25.8	–	–
General administrative expenses	44.8	42.3	44.8	42.3	–	–
Other operating income	1.9	6.4	1.9	6.4	–	–
Earnings before interest and income taxes	123.7	110.2	118.1	105.0	5.6	5.2
Financial income (loss)	–7.1	–9.6	–6.7	–9.3	–0.4	–0.3
Earnings before taxes	116.6	100.6	111.4	95.7	5.2	4.9
Income taxes	32.7	28.3
Net income	83.9	72.3
Earnings per share in € (diluted/undiluted)
Ordinary shares	0.81	0.70
Preferred shares	0.83	0.72

1 Including the assignment of consolidation between the 'Intralogistics' and 'Financial Services' segments.

2 Including retroactive adjustments in compliance with IFRS 3. Details can be found in the notes on accounting principles.

Consolidated statement of comprehensive income (loss)

in million €	H1 2017	H1 20161
Net income	83.9	72.3
Items which may be reclassified to the consolidated statement of income in the future
Income (loss) from the measurement of financial instruments with a hedging relationship	0.6	1.7
Income (loss) from the measurement of financial instruments available for sale	–0.1	–0.1
Income (loss) from currency translation	–9.0	–8.8
Items which will not be reclassified to the consolidated statement of income
Income (loss) from the measurement of pensions	7.0	–12.5
Other comprehensive income (loss)	–1.5	–19.7
Comprehensive income (loss)	82.4	52.6

1 Including retroactive adjustments in compliance with IFRS 3. Details can be found in the notes on accounting principles.

Consolidated balance sheet

Assets

	Jungheinrich Group		Intralogistics1		Financial services
in million €	30/06/2017	31/12/2016	30/06/2017	31/12/2016	30/06/2017	31/12/2016
Non-current assets
Intangible and tangible assets	575.4	579.2	566.1	569.5	9.3	9.7
Trucks for short-term hire	357.5	326.4	357.5	326.4	–	–
Trucks for lease from financial services	409.5	394.7	(82.0)	(79.5)	491.5	474.2
Receivables from financial services	570.9	537.0	–	–	570.9	537.0
Financial and other assets	46.7	42.6	11.3	11.5	35.4	31.1
Securities	25.0	30.0	25.0	30.0	–	–
Deferred tax assets	95.1	106.4	87.8	98.9	7.3	7.5
	2,080.1	2,016.3	965.7	956.8	1,114.4	1,059.5
Current assets
Inventories	480.6	395.7	443.1	356.8	37.5	38.9
Trade accounts receivable	553.0	600.3	480.5	528.2	72.5	72.1
Receivables from financial services	221.8	214.8	–	–	221.8	214.8
Other assets	68.5	70.4	(31.4)	(19.7)	99.9	90.1
Securities	131.7	131.4	131.7	131.4	–	–
Liquid assets	144.8	214.1	127.9	195.2	16.9	18.9
	1,600.4	1,626.7	1,151.8	1,191.9	448.6	434.8
	3,680.5	3,643.0	2,117.5	2,148.7	1,563.0	1,494.3

1 Including the assignment of consolidation between the 'Intralogistics' and 'Financial Services' segments.

Shareholders' equity and liabilities

	Jungheinrich Group		Intralogistics1		Financial services
in million €	30/06/2017	31/12/2016	30/06/2017	31/12/2016	30/06/2017	31/12/2016
Shareholders' equity	1,152.7	1,114.1	1,066.2	1,032.4	86.5	81.7
Non-current liabilities
Provisions for pensions and similar obligations	213.7	222.7	213.6	222.6	0.1	0.1
Financial liabilities	209.5	215.6	209.5	215.6	–	–
Liabilities from financial services	852.2	820.5	–	–	852.2	820.5
Deferred income	81.1	76.3	49.4	45.1	31.7	31.2
Other liabilities	73.7	78.1	67.3	70.8	6.4	7.3
	1,430.2	1,413.2	539.8	554.1	890.4	859.1
Current liabilities
Other provisions	166.8	186.4	165.9	185.6	0.9	0.8
Financial liabilities	104.4	103.9	101.7	99.0	2.7	4.9
Liabilities from financial services	352.4	335.3	–	–	352.4	335.3
Trade accounts payable	292.8	287.0	152.3	160.2	140.5	126.8
Deferred income	41.2	37.1	25.2	21.7	16.0	15.4
Other liabilities	140.0	166.0	66.4	95.7	73.6	70.3
	1,097.6	1,115.7	511.5	562.2	586.1	553.5
	3,680.5	3,643.0	2,117.5	2,148.7	1,563.0	1,494.3

1 Including the assignment of consolidation between the 'Intralogistics' and 'Financial Services' segments.

Consolidated statement of cash flows

in million €	H1 2017	H1 20161
Net income	83.9	72.3
Depreciation, amortisation and impairment losses	136.3	123.2
Changes in provisions	–30.6	4.9
Changes in trucks for short-term hire and trucks for lease (excluding depreciation)	–151.1	–119.3
Changes in deferred tax assets and liabilities	10.7	0.1
Changes in
Inventories	–84.9	–85.0
Trade accounts receivable	46.1	–16.6
Receivables from financial services	–40.9	–3.6
Trade accounts payable	5.8	3.4
Liabilities from financial services	48.8	9.6
Liabilities from financing trucks for short-term hire	–1.7	0.4
Other changes	–12.0	–4.5
Cash flows from operating activities	10.4	–15.1
Payments for investments in tangible and intangible assets	–37.3	–36.3
Proceeds from the disposal of tangible and intangible assets	1.3	1.0
Payments for the acquisition of companies and business areas, net of acquired cash and cash equivalents	–	–20.3
Payments for the purchase of securities	–43.9	–84.4
Proceeds from the sale/maturity of securities	48.5	98.3
Cash flows from investing activities	–31.4	–41.7
Dividends paid	–43.8	–39.4
Changes in liabilities due to banks and financial loans	–3.6	11.0
Cash flows from financing activities	–47.4	–28.4
Net cash changes in cash and cash equivalents	–68.4	–85.2
Changes in cash and cash equivalents due to changes in exchange rates	–1.2	0.7
Changes in cash and cash equivalents	–69.6	–84.5
Cash and cash equivalents on 1 January	205.3	201.6
Cash and cash equivalents on 30 June	135.7	117.1

1 Including retroactive adjustments in compliance with IFRS 3. Details can be found in the notes on accounting principles.

Consolidated statement of changes in shareholder's equity

	Sub scribed capital	Capital reserve	Retained earnings1	Accumulated other comprehensive income (loss)	Total1
									Measurement of financial instruments
in million €				Currency translation	Remeasure ment of pensions	available for sale	with a hedging relationship
As of 01/01/2017	102.0	78.4	999.7	16.0	–82.3	0.5	–0.2	1,114.1
Comprehensive income (loss) 01/01/2017– 30/06/2017	–	–	83.9	–9.0	7.0	–0.1	0.6	82.4
Dividend for the previous year	–	–	–43.8	–	–	–	–	–43.8
As of 30/06/2017	102.0	78.4	1,039.8	7.0	–75.3	0.4	0.4	1,152.7
As of 01/01/2016	102.0	78.4	884.7	21.7	–62.3	–	1.7	1,026.2
Comprehensive income (loss) 01/01/2016 –30/06/2016	–	–	72.3	–8.8	–12.5	–0.1	1.7	52.6
Dividend for the previous year	–	–	–39.4	–	–	–	–	–39.4
As of 30/06/2016	102.0	78.4	917.6	12.9	–74.8	–0.1	3.4	1,039.4

1 Including retroactive adjustments in compliance with IFRS 3. Details can be found in the notes on accounting principles.

Notes to the consolidated financial statements

Accounting principles

The consolidated financial statements of Jungheinrich AG as of 31 December 2016 were prepared in accordance with the International Financial Reporting Standards (IFRS) applicable on the balance sheet date. All standards and interpretations of the IFRS Interpretations Committee endorsed by the EU and effective as of 31 December 2016 were applied. These interim consolidated financial statements as of 30 June 2017 were also prepared in accordance with IAS 34. This interim report has not been audited or reviewed by auditors.

The accounting principles applied to prepare the interim financial statements as of 30 June 2017 and calculate comparative figures for the previous year are the same as those applied to the consolidated financial statements as of 31 December 2016. These principles are described in detail in the notes to the consolidated financial statements in the 2016 annual report.

The interim financial statements as of 30 June 2017 have been prepared in euros (€). Unless indicated otherwise, disclosure is in millions of euros. The statement of income has been prepared using the cost of sales accounting method.

The purchase price allocation for NTP Forklifts Australia (NTP), Adelaide (Australia), acquired as of 1 November 2015, was completed in the fourth quarter of 2016, within the 12 month deadline defined by IFRS 3. Details of the final purchase price allocation can be found in the 2016 annual report. The effects of adjustments in accordance with IFRS 3 on the individual items of the consolidated statement of income for the first half of 2016 and the consolidated balance sheet as of 30 June 2016 are shown below.

The purchase price allocation for Jungheinrich Rentalift SpA, Santiago de Chile (Chile), acquired as of 1 April 2016, was completed in the fourth quarter of 2016. It had no material impact on the interim financial statements as of 30 June 2016. The comparative figures for the first half of 2016 were therefore not adjusted.

Final NTP purchase price allocation: Adjustments to the consolidated statement of income for H1 2016

in million €	Final purchase price allocation	Preliminary purchase price allocation	Adjustments
Net sales	1,430.7	1,431.0	–0.3
Cost of sales	976.7	975.6	1.1
Earnings before interest and taxes	110.2	111.6	–1.4
Earnings before taxes	100.6	102.0	–1.4
Income taxes	28.3	28.7	–0.4
Net income	72.3	73.3	–1.0

Final NTP purchase price allocation:

Adjustments to the consolidated balance sheet as of 30 June 2016

in million €	Final purchase price allocation	Preliminary purchase price allocation	Adjustments
Intangible and tangible assets	571.2	572.0	–0.8
Trucks for lease from financial services	375.6	384.8	–9.2
Receivables from financial services	705.3	696.3	9.0
Shareholders' equity	1,039.4	1,040.4	–1.0

Scope of consolidation

As part of the expansion of the logistics systems business, Jungheinrich Degernpoint AG & Co. KG, Moosburg, and Jungheinrich Projektlösungen AG & Co. KG, Offenbach am Main, were established in Germany in the second quarter of 2017. The initial consolidation of these companies did not give rise to any differences.

In addition to the parent company, Jungheinrich AG, Hamburg, a total of 74 foreign and 18 domestic companies were included in the scope of consolidation. The scope of consolidation encompasses 82 consolidated companies, including one structured company, all of which are either directly or indirectly controlled by Jungheinrich AG. Ten joint ventures are accounted for using the equity method.

Segment reporting

The segment reporting comprises the reportable segments 'Intralogistics' and 'Financial Services'. Detailed segment information can be found in the notes to the financial statements in the 2016 annual report.

The reconciliation items include the intra-Group sales, interest and intra-Group profits as well as receivables and liabilities that must be eliminated within the scope of consolidation.

Segment information H1 2017

					Jungheinrich
in million €	Intralogistics	Financial services	Segment total	Reconciliation	Group
External net sales	1,299.4	334.8	1,634.2	–	1,634.2
Intersegment net sales	370.7	55.7	426.4	–426.4	–
Total net sales	1,670.1	390.5	2,060.6	–426.4	1,634.2
Segment income (loss) (EBIT)	132.3	5.6	137.9	–14.2	123.7
Financial income (loss)	–6.7	–0.4	–7.1	–	–7.1
Earnings before taxes (EBT)	125.6	5.2	130.8	–14.2	116.6
Assets as of 30 June	2,519.9	1,563.0	4,082.9	–402.4	3,680.5
Shareholders' equity as of 30 June	1,250.9	86.5	1,337.4	–184.7	1,152.7
Liabilities as of 30 June	1,269.0	1,476.5	2,745.5	–217.7	2,527.8
Shareholders' equity and liabilities as of 30 June	2,519.9	1,563.0	4,082.9	–402.4	3,680.5

Segment information H1 2016

in million €	Intralogistics	Financial services1	Segment total1	Reconciliation1	Jungheinrich Group1
External net sales	1,139.2	291.5	1,430.7	–	1,430.7
Intersegment net sales	330.9	51.3	382.2	–382.2	–
Total net sales	1,470.1	342.8	1,812.9	–382.2	1,430.7
Segment income (loss) (EBIT)	109.3	5.2	114.5	–4.3	110.2
Financial income (loss)	–9.3	–0.3	–9.6	–	–9.6
Earnings before taxes (EBT)	100.0	4.9	104.9	–4.3	100.6
Assets as of 30 June	2,351.5	1,398.0	3,749.5	–345.0	3,404.5
Shareholders' equity as of 30 June	1,118.2	77.9	1,196.1	–156.7	1,039.4
Liabilities as of 30 June	1,233.3	1,320.1	2,553.4	–188.3	2,365.1
Shareholders' equity and liabilities as of 30 June	2,351.5	1,398.0	3,749.5	–345.0	3,404.5

1 Including retroactive adjustments in compliance with IFRS 3. Details can be found in the notes on accounting rinciples.

Additional disclosures on the financial instruments

A detailed description of the individual financial instruments, their valuation, the valuation method and inputs for the calculation of fair value can be found in the notes to the consolidated financial statements in the 2016 annual report. Additional disclosures on the financial instruments that must be provided in the interim financial statements are shown below.

The following table shows the carrying amounts and fair values of the Group's financial instruments as at the balance sheet date. Financial assets and liabilities not measured at fair value in the consolidated financial statements and for which the carrying amount is a reasonable approximation of fair value are not included in the table; nor are financial investments of €27.0 million (31/12/2016: €26.3 million) for which fair value cannot be reliably determined.

Carrying amounts and fair value of financial instruments

	30/06/2017		31/12/2016
in million €	Carrying amount	Fair value	Carrying amount	Fair value
Assets
Receivables from financial services	792.7	804.1	751.8	765.1
Securities1	30.0	30.1	40.5	40.6
Securities2	126.7	126.7	120.9	120.9
Derivative financial assets	4.3	4.3	6.5	6.5
Shareholders' equity and liabilities
Liabilities from financial services	1,204.6	1,218.3	1,155.8	1,170.5
Financial liabilities	313.9	319.7	319.5	324.5
Derivative financial liabilities	3.8	3.8	5.0	5.0

Jungheinrich share Interim group management report Interim consolidated financial statements Additional information

Notes to the consolidated financial statements

1 Classified as 'financial investments held to maturity'

2 Classified as 'financial assets available for sale'

The table on page 18 shows the carrying amounts of the financial instruments regularly measured at fair value in the consolidated financial statements according to their level in the fair value hierarchy defined by IFRS 13, depending on the information and input factors used for the measurement.

The fair value hierarchy is based on the input factors used:

Level 1 – (unchanged) market prices quoted on active markets for identical assets or liabilities,

Level 2 – input data other than listed market prices, which can be observed either directly (as a price) or indirectly (derived from prices) for the asset or liability,

Level 3 – referenced input factors used for the measurement of the asset or liability that are not based on observable market data.

Fair value hierarchy for financial instruments measured at fair value

		30/06/2017		31/12/2016
in million €	Level 1	Level 2	Total	Level 1	Level 2	Total
Assets
Securities1	126.7	–	126.7	120.9	–	120.9
Derivative financial assets	0.1	4.2	4.3	0.3	6.2	6.5
Shareholders' equity and liabilities
Derivative financial liabilities	0.4	3.4	3.8	0.1	4.9	5.0

1 Classified as 'financial assets available for sale'

The fair value of Level 1 financial instruments was determined on the basis of stock market quotations as of the balance sheet date.

The fair value of Level 2 financial instruments was determined in line with generally acknowledged valuation models based on discounted cash flow analyses and using observable current market prices for similar instruments. The derivative financial instruments categorised as Level 2 are currency forwards and interest rate derivatives. The fair value of currency forwards is determined using the mean spot rate on the balance sheet date, adjusted up or down to reflect the remaining term of the futures contract. The fair value of interest rate derivatives is determined on the basis of the market interest rates and yield curves on the balance sheet date, taking their maturities into account. Jungheinrich has taken counterparty risks into consideration when measuring fair value.

No transfers between Levels 1 and 2 took place in the reporting period.

The Jungheinrich Group does not hold any Level 3 financial instruments.

Related Party Disclosures

Jungheinrich AG's major ordinary shareholders are LJH-Holding GmbH, Wohltorf, and WJH-Holding GmbH, Aumühle.

In addition to the subsidiaries included in the consolidated financial statements, Jungheinrich has business relationships with joint ventures and affiliated, non-consolidated subsidiaries. All the relationships with these companies are the result of normal business activities and are conducted on arm's length terms. The transactions with non-consolidated subsidiaries were of minor amounts.

Members of the Board of Management and Supervisory Board of Jungheinrich AG are also members of supervisory boards or comparable boards of other companies with which in some cases Jungheinrich AG has a normal business relationship. All transactions with these companies are conducted on arm's length terms.

mainder of the year.

loss of the Group, and the Group management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group over the re-

Responsibility statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or

Hamburg, 8 August 2017

Jungheinrich Aktiengesellschaft Board of Management

Hans-Georg Frey Dr Lars Brzoska Dr Volker Hues Dr Oliver Lücke Dr Klaus-Dieter Rosenbach

Jungheinrich Aktiengesellschaft

22047 Hamburg Phone: +49 40 6948-0 info@jungheinrich.com

ISIN DE0006219934, WKN 621993

Financial calendar

June 30, 2017 08/08/2017

September 30, 2017 11/07/2017