Growing with Passion Balance Sheet Press Conference

Transcription

1 Growing with Passion Balance Sheet Press Conference Hans-Georg Frey, Chairman of the Board of Management Dr. Volker Hues, Member of the Board of Management, Finance Hamburg, March 25, 2015

2 Content Highlights and Key Figures 2014 World Material Handling Equipment Market Business Model Business Development in 2014 and current Business Trend Strategic Issues and Outlook 2

3 Highlights and Key Figures 2014

4 2014 Record Year Jungheinrich achieves record figures in terms of incoming orders and net sales EBT, EBIT and net income Dividend (preferred shares) rises by 21% Jungheinrich share advances to MDAX Production volume of 83,500 forklifts represents highest level in corporate history 4

5 Jungheinrich Group Key Figures in 2014 Incoming orders in million Net sales in million 2,357 +8% 2,535 2,290 +9% 2, EBIT in million Net income in million 7.5% EBIT 7.7% ROS % %

6 Dividend Rises by 21% Earnings per preferred share in Dividend per preferred share in % % 1.04 Proposal

7 Achievements in 2014 (1) Core business: Europe Further consolidated market share Asia Further expanded Asian business Logistics systems business Increased net sales in logistics systems business by 18% 7

8 Achievements in 2014 (2) ICs 1 Enlarged share of the market Mail-order business Increased mail order net sales to 50 million Other highlights Major construction projects on schedule and within budget Short-term hire fleet enlarged considerably 100 million promissory note bond issued 1 IC (internal combustion) engine-powered counterbalanced trucks. 8

9 World Material Handling Equipment Market

10 World Material Handling Equipment Market Volume in thousand units Worldwide 2014: Steady growth across all quarters Europe % % Asia % 1,010 +8% 1, North America +11% +11% % +11% Source: WITS und SIMHEM. 10

11 World Material Handling Equipment Market Breakdown of Volume by Region Percentage of total market in terms of units 2007 = 951 thousand units 2014 = 1,094 thousand units Europe 43% 8% thereof Eastern Europe Rest of World 9% Central/South America 5% Australia/Africa 4% Asia 28% thereof China 12% North America 20% thereof Eastern Europe Europe 31% Asia 41% 5% 25% 8% Rest of World Central/South America 4% Australia/Africa 4% North America 20% thereof China European market volume in 2014 still 16% below pre-crisis level Source: WITS. and SIMHEM. 11

12 World Material Handling Equipment Market Breakdown of Volume by Product Segment in terms of units Worldwide 2014: 1,094 thousand units (2007: 951 thousand units) Europe 61% (52%) 20% (28%) 19% (20%) 39% (37%) 44% (45%) Asia 19% (18%) 16% (16%) 65% (66%) 17% (18%) Warehousing equipment Battery-powered counterbalanced trucks IC engine-powered counterbalanced trucks North America 45% (40%) 37% (43%) 18% (17%) Source: WITS and SIMHEM. 12

13 World Material Handling Equipment Market Market Structure Comparison Broken Down by Product Segment in 2014 (2007) in terms of units Europe China 61% (52%) 20% (28%) 19% (20%) 14% (9%) 13% (12%) 73% (79%) Source: WITS. Warehousing equipment Battery-powered counterbalanced trucks IC engine-powered counterbalanced trucks Europe and China: Trend towards warehousing equipment; future growth potential for Jungheinrich 13

14 World League Ranking 2014 (2013) Net sales in million, including currency effects Ranking in Europe 6,169 Jungheinrich Kion (5,854) 4, Toyota (4,495) 2,498 2,082 Toyota Raymond BT Industries Cesab Linde Still Fenwick OM Still Baoli Voltas (2,290) Jungheinrich (2,008) Hyster Yale Utilev 1 Toyota Kion Jungheinrich Hyster-Yale 1 Fiscal year: April to March, adjusted: January to December. Source: company data. 14

15 Business Model

16 The Jungheinrich Business Model Intralogistics New truck business Development, production and sale of new forklifts including logistics systems and mail-order business Financial services Usage transfer and sales financing of material handling and warehousing equipment Short-term hire Rental of new and used material handling equipment Used equipment Reconditioning and sale of used trucks After-sales services Maintenance, repair and spare part business 16

17 Business Fields: New Truck Business and After-Sales Services New truck business Examples: ETV 320/325 ETR 320 VFG After-sales services Potential for after-sales services depends on market penetration! 5,700 employees in the global after-sales organization, thereof 4,000 after-sales service engineers High market penetration: 1,022 thousand trucks ~68.1 thousand units Service expiring in Service Service potential Production in thousand units

18 The Short-Term Hire and Used Equipemt Business Field Short-term hire Hire periods: generally 1 day to 24 months Targeted degree of capacity utilization 70% to 80% -Inventory: 2014 = 38.1 thousand trucks (+13% yoy) Used equipment Marketing of used equipment (leasing, short-term hire fleet and trade-ins) Professional reconditioning of forklifts in the Dresden Used Equipment Centre (increase in capacity to 8,000 forklifts by the end of 2015) 2014: 5,100 reconditioned trucks 18

19 Divisions: Logistics Systems Business and Mail-Order Business New truck business Net sales 1,375 million Logistics systems Value chain LS project business 339 million 50 million Planning General contrator WMS/ Software Racking Rack servicing cranes/ Automatic miniload warehouse/ Conveyor systems Maintanance and service Mail-order business in Germany, Austria and in the Netherlands 19

20 Deliveries by Industry 12% Retail and wholesale (incl. food distribution) Logistics 47% 11% 8% Mechanical, automotive and electrical engineering Food industry (Production) 17% 4% 1% Chemical industry Timber, paper and print industries Other industry sectors Based on incoming orders in terms of units in

21 Financial Services Principles and Objectives Business policy Sales policy Risk management Service function for Jungheinrich sales division Substantial financial services profits are stated in sales division New truck business/after-sales services/used equipment Promotion and expansion of new truck business and after-sales services Principle: Every financial service agreement to cover full service and maintenance Permanent customer retention Flexible, customized contracts Matching refinancing (term and interest) Regular creditworthiness checks Quarterly assessment of contractual/residual value risks Transparency and process reliability via Group database Full disclosure on Jungheinrich s consolidated balance sheet 21

22 Business Development in 2014 and current Business Trend

23 Incoming Orders Of all business fields in million New truck business in thousand units 2,357 +8% 2, % New truck business million, about half of which in the logistics systems business 23

24 Production New Truck Business in thousand units % 83.5 Production surpasses pre-crisis level for the first time and hits all-time high in corporate history Warehousing equipment, battery-powered counterbalanced trucks and IC enginepowered counterbalanced trucks post double-digit growth

25 Net Sales in million Consolidated net sales 2,290 +9% 2,498 Net sales Intralogistics segment New truck business 54% (52%) 29% (31%) 17% (17%) 2014 (2013) After-sales services Short-term hire fleet and used equipment Consolidated net sales by region 2014 (2013) All business fields contributed to net sales growth especially new truck business (+13%) Germany 26% (27%) 9% Rest of World (8%) 14% (13%) Eastern Europe 51% (52%) Western Europe 25

26 Earnings in million EBIT Net income 7.5% EBIT ROS 7.7% % % Strong growth in low-margin new truck business Addition to the endowment of the Dr. Friedrich Jungheinrich Foundation (by 1.3 million) CeMAT costs impose burden Positive exceptional effect of the pension plan adjustment ( 6.7 million) 26

27 R&D and Capital Expenditures in million R&D Expenditures Capital Expenditures Capex ratio as a Capitalization 27% 25% 4% percentage 3% ratio of net sales Focal points: energy efficiency of drive systems and automation of material handling equipment Capex magnets in 2014: training centre (Norderstedt plant), modernization of counterbalanced truck production (Moosburg plant), expansion of the Dresden Used Equipment Centre, acquisition of real estate in Singapore, and corporate headquarters (Hamburg) 27

28 Major Construction Projects Norderstedt Training Centre Modernization of the Moosburg factory Expansion of the Used Equipment Centre Dresden Corporate headquarters 28

29 Cash Flows from Operating Activities and Net Debt in million Cash flows from operating activities Net debt 1 Cash /31/ /31/ /31/ /31/2014 Cash flows from operating activities significantly affected by net income and depreciation Decline stems from substantial expansion of short-term hire fleet and build-up of working capital 1 Net debt: Financial liabilities./. liquid assets and securities. 29

30 Working Capital and ROCE in million. Working capital Capital Employed 21.9% as a percentage 22.3% 18.7% ROCE % of net sales ,047 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 30

31 Shareholders' Equity and Equity Ratio Shareholders equity in million Balance sheet total in million 2,751 3,040 Group's equity ratio % 29.6% 12/31/ /31/ /31/ /31/2014 Significant shareholders equity and robust equity ratio are proof of Jungheinrich s financial clout In 2014, shareholders equity was curtailed by 27 million after taxes due to the remeasurement of provisions for pensions Equity ratio Intralogistics segment 47.1% 46.0% 12/31/ /31/

32 Financial Services in milion Original value of new contracts Original value of contracts on hand 1, , Trucks in thousand units

33 Workforce Trend in full-time equivalent (FTE), including apprentices, excluding temporay workers ,549 11,840 Lion s share of workforce expansion: sales in Europe and Asia Germany 5,356 5,638 Further focal point: fortification of the logistics systems business 5,672 employees worldwide (45%) in the service network, 4,019 of whom are service engineers Abroad 6,484 6,911 12/31/ /31/

34 World Material Handling Equipment Market as of February 2015 Growth Rates by Region in terms of units; compared to 2/2014 Worldmarket in thousand units Europe +8% 2/2014 2/2015 Western +10% Eastern Asia thereof Russia -53% thereof China -24% -14% -9% North America +13% World -1% Source: WITS, SIMHEM 2/

35 Business Trend February 2015 Incoming orders in million Incoming orders in units % , % 15,800 2/2014 2/2015 2/2014 2/2015 Net sales in million Production in units % ,500-6% 13,700 2/2014 2/2015 2/2014 2/

36 Orders on Hand New Truck Business in million +10% 418 The order reach is more than four months /31/ /28/

37 Strategic Issues and Outlook 37

38 The Jungheinrich Group s Growth Strategy Asia's growth markets focusing on China Core business Europe Focal points of the Group s strategy Logistics systems business Goal for 2017: > 3 billion net sales Product segment "IC powered forklifts" 1 Mail-order business 1 IC engine-powered counterbalanced trucks. 38

39 Focal Points in 2015 We want to post strong growth in 2015 as well! We are determined to enlarge our global footprint by expanding our existing sales and service centres and establishing new sales companies. We will continue to invest heavily in our sales network and R&D. Our labour force will grow significantly yet again in the year underway. 39

40 Basic Conditions and Risks Positive economic outlook Risks Growth rate GDP in % 2014 Forecast 2015 World Eurozone Germany China USA Source: Commerzbank March Economic risks in European countries Foreign exchange fluctuations Growth risk in China Other geopolitical risk factors Positive global economic environment in 2015 World economic growth in 2015 comparable to

41 World Material Handling Equipment Market in thousand units Worldwide Europe 2015e % +2% Asia 2015e % 1,010 +8% 1, % +11% North Amerika 2015e e World material handling equipment market expected to post further growth +9% +11% However with less momentum than in 2014 Source: WITS and SIMHEM, 2015 figures estimated. 41

42 Jungheinrich Group Forecast for 2015 Incoming orders 2.6 bn bn 1 Net sales 2.6 bn bn 1 EBIT 190 million million 1 EBT 170 million million 1 Capital expenditures in tangible assets 90 million million Research and development expenditures ~ 50 million ROCE 15% - 20% Dividend policy: Payout ratio of 25% to 30% of net income : incoming orders: 2.5 billion, net sales: 2.5 billion, EBIT: 193 million, EBT 175million. 42

43 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 the political and legal environment and within the material handling equipment sector as well as exchange and interest rate fluctuations. Therefore, no responsibility is taken for forward-looking statements made in this Group management report and no ensuing liability is assumed. 43

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