Jungheinrich AG · XETR:JUN3
Jungheinrich — Q3 2016 Earnings Presentation
38 slides from Jungheinrich's earnings presentation, Nov 8, 2016
Slide 1: Growing with Passion – Investor Relations Presentation
Growing with Passion Investor Relations Presentation Hamburg, November 8, 2016
Slide 2: Content
Content 1. Jungheinrich at a Glance 2. World Material Handling Equipment Market 3. Business Model 4. Current Business Trend 2016 5. Strategic Issues and Outlook
Slide 3: Jungheinrich at a Glance
1 Jungheinrich at a Glance Growing with Passion
Slide 4: Jungheinrich at a Glance
Jungheinrich at a Glance ■ Independent, family-owned company ■ Leading intralogistics service & solution provider with manufacturing operations ■ No. 2 in Europe, No. 3 in the world ■ Focus on direct sales ■ Single-brand strategy Net sales Consolidated net Key figures 2015 Intralogistics segment sal
Slide 5: Dividend
Dividend Dividend per preferred share in €1 Payout ratio 28.6% 27.3% 26.4% 25.2% 23.5% 0.35 0.40 0.29 0.29 0.25 2011 2012 2013 2014 2015 1 Figures are retroactively restated due to stock split (1:3) on June 22, 2016. Investor Relations Presentation November 8, 2016 5
Slide 6: World Material Handling Equipment Market
2 World Material Handling Equipment Market Jungheinrich is the Number 3 in the World
Slide 7: World Material Handling Equipment Market—Market Volume
World Material Handling Equipment Market—Market Volume Incoming orders in thousand units Europe +8% 373 +9% 345 Worldwide 411 Asia -7% 414 +11% 444 1,094 1,100 266 +0.5% North America +7% 235 951 +9% 219 191 2007 2014 2015 2015 2014 2007 Source: WITS, SIMHEM Investor Relations Presentation November
Slide 8: Breakdown of Volume by Region
World Material Handling Equipment Market Breakdown of Volume by Region 2007 = 951,000 units 2015 = 1,100,000 units Asia Asia 28% Europe 38% Europe thereof 34% 43% China 12% thereof China 22% North 8% thereof 5% thereof America Eastern Eastern 20% Europe North Europe 7% America 9% Rest of World 21% C
Slide 9: Breakdown of Volume by Product Segment
World Material Handling Equipment Market Breakdown of Volume by Product Segment Europe 18% Worldwide 2015: 1,100,000 units (28%) (2007: 951,000 units) 63% 19% (52%) (20%) Asia The trend towards 23% (18%) warehousing 43% 40% 60% (37%) (45%) 17% (66%) equipment (16%) continued across all regions 17% N
Slide 10: Market Structure Comparison Broken Down by Product Segment
World Material Handling Equipment Market Market Structure Comparison Broken Down by Product Segment in 2015 (2007) Europe China 18% 18% (28%) (9%) 63% 13% 69% 19% (52%) (12%) (79%) (20%) Europe and China: Trend towards warehousing equipment; future growth potential for Jungheinrich Warehousing Batte
Slide 11: World League Ranking
World League Ranking 2015 (2014) Net sales in € billion Ranking in Europe 7.5 (6.6) 1 5.1 2 3 Jungheinrich Kion Toyota (4.7) 2.8 2.4 2.3 (2.5) (1.9) (2.1) Linde Still Toyota Fenwick Raymond OM Still Hyster BT Industries Baoli Crown Yale Cesab Voltas Hamech Utilev Toyota1 Kion Jungheinrich Crown 1 Hy
Slide 12: Business Model
3 Business Model Jungheinrich is far more than just a Forklift Manufacturer
Slide 13: The Jungheinrich Business Model
The Jungheinrich Business Model New truck Development, production and sale of new forklifts including business logistics systems and mail-order business, focus on direct sales Hire periods: generally 1 day to 24 months Targeted degree of capacity utilization 70% to 80% Financial services Short
Slide 14: Divisions: Logistics Systems Business and Mail-Order Business
Divisions: Logistics Systems Business and Mail-Order Business Net Sales in 2015 New truck business Logistics Net sales € 1,539 million systems System Project €381 million Racking trucks business €57 million Mail-order business Development of net sales in € million Investor Relations Presentation Nov
Slide 15: The Variety of our Solutions
The Variety of our Solutions Material flow analysis Realization and Planning and system project design integration Maintenance Forklift trucks & Service (automated) Racking and Assistance storage systems equipment Shuttle Radio data systems Jungheinrich Stacker cranes WMS Conveyor system Investor Re
Slide 16: Deliveries by Industry
Deliveries by Industry Retail and wholesale (incl. food distribution) 13% Logistics Mechanical, automotive and 12% electrical engineering 45% Food industry (Production) 8% Chemical industry 17% 4% Timber, paper and print industries 1% Other industry sectors Based on incoming orders in units. Investo
Slide 17: Financial Services—Principles and Objectives
Financial Services—Principles and Objectives Service function for Jungheinrich sales division Business Substantial financial services profits are stated in sales division policy New truck business/after-sales services/used equipment Promotion and expansion of new truck business and after-sal
Slide 18: Current Business Trend 2016
4 Current Business Trend 2016 Q1-Q3 2016
Slide 19: Jungheinrich Highlights—Q1-Q3 2016
Jungheinrich Highlights—Q1-Q3 2016 ■ Board of Management confirms forecast. ■ Incoming orders, production and net sales post double-digit growth. ■ EBIT benefited from a positive, one-off effect of €4.7 million (Q2 2016), rising by 9% to €166 million. ■ Net income amounted to €107 million—up 9% year
Slide 20: World Material Handling Equipment Market Jan. to Sept. 2016
World Material Handling Equipment Market as of Jan. to Sept. 2016 Growth Rates by Region Europe +13% Western Europe +12% Eastern Europe thereof Russia +28% +20% Asia +3% thereof China +9% World markt in thousand units North America +3% 827.9 876.7 World +6% Q1-Q3 2015 Q1-Q3 2016 Source: WITS, SIMHEM
Slide 21: Incoming Orders
Incoming Orders Of all business fields, in € million New truck business, in thousand units ■ Some 25% of the growth was due to a rise ■ Very good demand in Europe, in orders in the logistics systems business Jungheinrich’s key market, drove up incoming orders 2,089 +15% 2,407 72.4 +14% 82.4 Q1-Q3 20
Slide 22: Production and Orders on Hand
Production and Orders on Hand New Truck Business Production, in thousand units Orders on hand, in € million ■ The order reach is five months 69.5 +14% 78.9 477 +44% 689 Q1-Q3 2015 Q1-Q3 2016 12/31/2015 09/30/2016 Investor Relations Presentation November 8, 2016 22
Slide 23: Consolidated Net Sales
Consolidated Net Sales Net sales, in € million ■ Net sales from new truck business +14% 1,965 +11% 2,185 ■ Net sales from short-term hire and used equipment +18%; about 40% of the rise results from the transfer of used equipment from Jungheinrich China’s rental fleet to the joint venture with Heli Q
Slide 24: Earnings before Interest and Taxes
Earnings before Interest and Taxes EBIT, in € million 7.7% EBIT ROS 7.6% ■ EBIT benefits from the positive one-off effect of €4.7 million (Q2 2016) 151.4 165.7 of the deconsolidation of UK-based Boss Manufacturing Ltd. Q1-Q3 2015 Q1-Q3 2016 Investor Relations Presentation November 8, 2016 24
Slide 25: Workforce Trend
Workforce Trend +798 (+6%) 14,760 13,962 Germany 6,366 6,078 ■ Some 20% of the workforce expansion was due to new sales companies in relation with the acquisition of the respective dealership business Abroad 8,394 (Romania and Chile) 7,884 12/31/2015 09/30/2016 In full-time equivalent (FTE), includi
Slide 26: Strategic Issues and Outlook
5 Strategic Issues and Outlook Jungheinrich is on Course!
Slide 27: The Jungheinrich Group's Growth Strategy
The Jungheinrich Group’s Growth Strategy Goal 2020: ~€4 billion net sales Investor Relations Presentation November 8, 2016 27
Slide 28: Expected Market Development in 2016
World Material Handling Equipment Market Expected Development in 2016 World: World Increase in world market volume. +0.5% 1,100 1,094 Europe: 951 Very positive development in Western and Eastern Europe. Europe +8% 373 thereof Eastern Europe -7.2% Asia: 345 thereof Eastern Europe -0.4% Warehous
Slide 29: Forecast for the Financial Year 2016—Confirmed
Jungheinrich Group Forecast for the Financial Year 2016—Confirmed EBIT ROS EBT ROS Incoming orders minimum 7.6% minimum 6.9% €3.1 bn - €3.2 bn ROCE Net sales 15% - 20% €3.0 bn - €3.1 bn Capital expenditures in tangible assets €75 m - €85 m EBIT €228 m - €238 m Research and development expenditures €
Slide 30: Disclaimer
Disclaimer Since developments cannot be foreseen, the actual business trend may deviate from the expectations presented here based on assumptions and estimates made by Jungheinrich company management. Factors that may lead to such deviations include changes in the economic environment, changes in th
Slide 31: Machines. Ideas. Solutions.
DUNGHEINRICH Machines. Ideas. Solutions.
Slide 32: Appendix
Appendix lachines. Ideas. Solutions.
Slide 33: Development of the Material Handling Equipment Markets of Importance
Development of the Material Handling Equipment Markets of Importance to Jungheinrich Market volume in 2015 Market volume in 2014 China -13%1 USA +8% Germany +9% France +12%2 UK +15% Italy +21%2 Spain +27%2 Poland +8% European market volume in 2015 Canada -3% still 9% down on pre-crisis level (2007)
Slide 34: World League Ranking
World League Ranking 2015 Net sales in € billion 7.5 5.1 2.8 2.4 2.3 Linde Still 1.8 1.7 1.2 Toyota Fenwick Mitsubishi Raymond OM Still Hyster Nippon Y. Nissan BT Indust. Baoli Crown Yale Caterpillar Kalmar TCM 0.8 0.8 Cesab Voltas Hamech Utilev Rocla Cargotec Atlet Toyota1 Kion Jungheinrich Crown 1
Slide 35: Jungheinrich Group production sites
Jungheinrich Group production sites Germany Hungaria China Low-lift trucks ● ● Stacker trucks ● ● Battery-powered counterbalanced ● ● trucks IC engine-powered counterbalanced ● trucks Reach trucks ● ● Order pickers ● ● ● Tow tractors ● High-rack stackers ● Stacker cranes ● ● Load handling equipment
Slide 36: Appendix—Jungheinrich Key Data (I)
Appendix—Jungheinrich Key Data (I) In € million 2007 2012 2013 2014 2015 Incoming orders 2,120 2,251 2,357 2,535 2,817 Consolidated net sales 2,001 2,270 2,290 2,498 2,754 - Germany 505 607 613 655 701 - Abroad 1,496 1,663 1,677 1,843 2,053 EBIT 139.5 176.8 172.4 192.7 213.1 EBIT ROS 7.0% 7.8% 7.5%
Slide 37: Appendix—Jungheinrich Key Data (II)
Appendix—Jungheinrich Key Data (II) In € million 2007 2012 2013 2014 2015 Equity ratio (Intralogistics) 39.9% 42.4% 47.1% 46.0% 47.6% Equity ratio (Group) 26.7% 27.3% 30.2% 29.6% 30.6% Net debt1 40 -183 -154 -132 -75 Tax ratio 41.1% 28.2% 28.9% 28.2% 30.6% Net income 82 112 107 126 138 Employees (FT
Slide 38: General Information
General Information Financial Calendar Contact: Balance sheet press conference 03/22/2017 Andrea Bleesen Analyst conference 03/22/2017 Head of Investor Relations Interim statement as of 03/31/2017 05/03/2017 2017 Annual General Meeting 05/16/2017 Jungheinrich Aktiengesellschaft Friedrich-Ebert Damm