Balance Sheet Press Conference

Transcription

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

2 Content 1. Jungheinrich at a Glance 2. World Material Handling Equipment Market 3. Business Development in 2016 and current Business Trend 4. Strategic Issues and Outlook

3 1 Jungheinrich at a Glance Jungheinrich had a successful year in 2016

4 Jungheinrich at a Glance Independent family-owned company Leading intralogistics service & solution provider with manufacturing operations No. 2 in the sector in Europe Focus on direct sales Singlebrand strategy Key figures in 2016: Incoming orders: 3,220 million, +14% Net sales: 3,085 million, +12% EBIT: 235 million, +10% Net income: 154 million, +12% Net sales Intralogistics segment Consolidated net sales split by region New truck business 56% 27% 17% After-sales service Short-term hire and used equipment Germany 24% Other countries 13% 14% Eastern Europe 49% Western Europe March 22,

5 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 March 22,

6 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 March 22,

7 Jungheinrich Group Target-to-actual Comparison in 2016 Forecast in August FY 2016 Incoming orders in billion * 3.2 Net sales in billion * 3.1 EBIT in million * 235 EBIT ROS in % At least 7.6% 7.6 EBT in million * 216 EBT ROS in % At least 6.9% 7.0 R&D expenditures in million Capital expenditures (tangible assets) in million Net credit in million Low, double-digit million euro territory 56 ROCE in % Market share in Europe in % Slight improvement over 2015 (21.5) Interim report as of June 30, * Raised since March March 22,

8 Dividend Objective: Payout ratio of between 25% and 30% of net income Proposal % 26% 27% 28% 29% Dividend per preferred share in 1 1 Figures are retroactively restated due to stock split (1:3) on June 22, Payout ratio March 22,

9 2 World Material Handling Equipment Market Jungheinrich is the Sector s No. 2 in Europe

10 World Material Handling Equipment Market Market Volume Incoming orders in thousand units Europe +13% 421 Worldwide +8% % +24% +7% 1,182 Asia +7% ,100-7% % 266 North America % +7% % Source: WITS, SIMHEM. March 22,

11 World Material Handling Equipment Market Breakdown of Volume by Region 2007 = 951 thousand units +24% 2016 = 1,182 thousand units thereof Eastern Europe Europe 43% 8% 9% Rest of World Central/South America 5% Australia/Africa 4% Asia 28% thereof China 12% North America 20% thereof Eastern Europe 5% Rest of World Central/South America 3% Australia/Africa 3% Europe 36% 6% North America 20% Asia 38% thereof China 23% Source: WITS, SIMHEM; based on incoming orders in units. March 22,

12 World Material Handling Equipment Market Breakdown of Volume by Product Segment Worldwide 2016: 1,182 thousand units (2007: 951 thousand units) Europe 65% (52%) 16% (28%) 19% (20%) 2007 (37%) (45%) 45% 38% Asia 25% (18%) 17% (16%) 58% (66%) The trend towards warehousing equipment continued across all regions (18%) 17% North America Warehousing equipment Battery-powered counterbalanced trucks 50% (40%) 32% (43%) 18% (17%) Internal combustion engine-powered counterbalanced trucks Source: WITS, SIMHEM; based on incoming orders in units. March 22,

13 World Material Handling Equipment Market Market Structure Comparison Broken Down by Product Segment in 2016 (2007) Europe China 2007 (28%) (52%) (20%) 65% 16% 19% (12%) (9%) % (79%) 19% 69% 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. March 22,

14 World League Ranking 2015 (2014) Net Sales in billion 7.5 (6.6) 5.1 (4.7) Ranking in Europe Jungheinrich is the sector s No. 2 behind Kion, but in front of Toyota Toyota Raymond BT Industries Cesab Linde Still Fenwick OM Still Baoli Voltas 2.8 (2.5) (2.1) Toyota1 Kion Jungheinrich Crown1 Hyster-Yale 2.4 (1.9) Crown Hamech 2.3 Hyster Yale Utilev 1 Fiscal year April to March. Source: Logistik Journal, 10/2016. March 22,

15 Development of the Material Handling Equipment Markets of Importance to Jungheinrich Market volume in 2016 Market volume in 2015 China +14% North America North +2% Asia (without China) Asia -2% Germany France Italy UK Spain Poland Netherlands Russia Australia Turkey +15% +26% +1% +17% +10% +18% +37% +2% -3% +9% European market volume up 2% in 2016 compared to pre-crisis levels (2007) 0 50, , , , , , units March 22,

16 3 Business Development in 2016 and current Business Trend

17 Incoming Orders Of all business fields, in million New truck business, in thousand units 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. +14% 3, % 2,817 The main driver of the increase was the marked rise in demand primarily in Europe March 22,

18 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. +16% % /31/ /31/2016 March 22,

19 Consolidated Net Sales in million 2, % 3,085 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%. March 22,

20 Earnings EBIT, in million EBT, in million % % 216 EBIT ROS 7.7% 7.6% EBT ROS 7.2% 7.0% Net income, in million % 154 Earnings per preferred share, in Prior-year figure adjusted retroactively due to the 1:3 stock split +12% EBIT reflects the positive one-off effect of 4.7 million of the deconsolidation of Boss Manufacturing Ltd., UK (Q2 2016). March 22,

21 Research & Development and Capital Expenditures R&D expenditures, in million Capital expenditures, in million % 62 Prior-year figure includes several large-scale construction projects completed in Focal point in 2016: modernization of the counterbalanced truck factory (Moosbourg) amongst others % Capitalization 59 20% 24% Capex ratio ratio as a 3% percentage 2% of net sales March 22,

22 Cash Flows 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 March 22,

23 Net Debt in million /31/ /31/2016 Net debt = Financial liabilities./. liquid assets and securities. March 22,

24 Working Capital and ROCE Working capital, in million Capital employed, in million as a 20.5% percentage of net sales 21.6% 1,318 1, % ROCE % 12/31/ /31/ /31/ /31/ 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. March 22,

25 Shareholders' Equity and Equity Ratio Group s equity ratio, in % The positive earnings trend in the year under review was a major influential factor regarding the 88 million rise in equity /31/ /31/2016 Shareholders equity, in million 1,114 1,026 Balance sheet 3,349 total 3,643 in million Equity ratio Intralogistics segment, in % /31/ /31/ /31/ /31/2016 March 22,

26 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%. Original value of new contracts, in million % Number of forklifts under contracts in thousand units % 137 Original value of contracts on hand, in millon % /31/ /31/ /31/ /31/2016 March 22,

27 Employees in FTE 13,962 +1,048 +8% 15,010 6,078 Germany 6,511 Sales force expanded in Europe above all in Poland, Germany, Italy, Russia, Spain and Switzerland. Headcount due to acquisitions and establishments of companies in Romania and Chile. 7,884 Abroad 8,499 Logistics systems expanded. After-sales headcount increased by 6% to 4, /31/ /31/2016 Full time equivalents, including apprentices, excluding temporary workers. March 22,

28 World Material Handling Equipment Market, Jan. and Feb Growth Rates by Region World markt in thousand units Europe +11% Western Europe +7% Eastern Europe thereof Russia +76% +40% Asia thereof China +80% North America +3% +8% +6% +49% World +23% Source: WITS, SIMHEM; based on incoming orders in units, Jan. and Feb vs. Jan. and Feb March 22,

29 Current Business Trend February 2017 Jan. and Feb Jan. and Feb Change in % Incoming orders in million Incoming orders in units Production in units Net sales in million Orders on hand in million % 16,800 19, % 15,100 18, % % /31/ /28/ % March 22,

30 4 Strategic Issues and Outlook Jungheinrich is on Course!

31 The Jungheinrich Business Model March 22,

32 Jungheinrich : 4 billion in net sales 4/7 Growth Strategy 2016 net sales: > 3 bn 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. Growth strategy: 4/7 7% p.a. Industry 4.0 Intralogistics 4.0 March 22,

33 The Jungheinrich Group s Growth Strategy Core business Europe Mail-order business Focal points of the Group s strategy APAC s growth markets focusing on China Goal 2020: ~ 4 billion net sales Counterbalanced trucks product segment Logistics systems business March 22,

34 World Material Handling Equipment Market Expected Development in 2017 World Europe Asia +13% % % North America +7% 1,182 1, thereof Eastern Europe +19% thereof Eastern Europe -7% thereof China +14% thereof China +13% World: The world material handling equipment market is expected to continue to grow, albeit with less momentum than in Europe: Market volume is likely to expand. An increase in mid-range, single-digit percentage territory is anticipated, also with less momentum than in 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 Source: WITS, SIMHEM; based on incoming orders in units. March 22,

35 Jungheinrich Group: Forecast for the Financial Year 2017 Positive Business Trend expected Forecast 2017 Incoming orders in billion Net sales in billion EBIT in million EBIT ROS in % In the order of last year s level (7.6) EBT in million 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) March 22,

36 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. March 22,

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