Inhalt. Highlights and Key Figures in World Material Handling Equipment Market. Business Model and strategic Issues

Transcription

1 Analyst Conference Hans-Georg Frey, Chairman of the Board of Management Dr. Volker Hues, Member of the Board of Management, Finance Frankfurt am Main, March 27, 2014

2 Inhalt Highlights and Key Figures in 2013 World Material Handling Equipment Market Business Model and strategic Issues Business Development in 2013 and current Business Trend Outlook 2

3 Highlights and Key Figures in 2013

4 Highlights in 2013 World material handling equipment market > 1 million units for the first time Record level of incoming orders achieved; net sales slightly higher year on year Decent EBIT generated Large-scale strategic projects completed on schedule and in line with their budgets Research and development expenditures maintained at the preceding year s high level Dividend unchanged 4

5 Jungheinrich Group Key Figures in 2013 in million Incoming orders Net Sales EBIT Net income +5% +1% EBIT-ROS in % ,251 2,357 2,270 2,290-3% % figures adjusted due to the application of the amended version of IAS 19 and various changes in the accounting treatment of interest income and expenses. 5

6 Dividend Unchanged Despite Marginal Drop in Earnings Dividend per preferred share in Net income in million Proposal figures adjusted due to the application of the amended version of IAS 19 and various changes in the accounting treatment of interest income and expenses. 6

7 World Material Handling Equipment Market

8 World Material Handling Equipment Market Volume in thousand units Europe % % % 316 Asia % % % = North America +25% % % World % 975-3% +7% 1, Greatest momentum in Q Source: WITS. 8

9 World Material Handling Equipment Market Breakdown of Volume by Region Percentage of total market in terms of units 2007 = 951 thousand units 2013 = 1,010 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 Rest of World Central/South America 5% Australia/Africa 4% Europe 6% 31% 9% North America 20% Asia 40% thereof China 25% Source: WITS. 9

10 World Material Handling Equipment Market Breakdown of Volume by Product Segment in terms of units Warehousing equipment 2013: 1, units (2012: 944,405 units) 38% (38%) 46% (46%) IC engine-powered counterbalanced trucks 16% (16%) Battery-powered counterbalanced trucks Source: WITS. 10

11 World Material Handling Equipment Market Market Structure Comparison Broken Down by Product Segment in 2013 in terms of units Europe China 60% 22% 13% 77% 18% 10% Warehousing equipment Battery-powered counterbalanced trucks China: Trend towards warehousing equipment; future growth potential for Jungheinrich IC engine-powered counterbalanced trucks Source: WITS. 11

12 Development of the Volume of Major Growth Markets in thousand units +70% % % % China % % % 24.2 Russia +478% Brazil % -1% % % Source: WITS. 12

13 World League Ranking in 2012 (2011) Net sales in million, including currency effects 5,653 (5,010) 4,726 Ranking in Europe Jungheinrich Kion Toyota (4,368) 2, ,922 1,712 Toyota Raymond BT Industries Cesab Linde Still Fenwick OM Still Baoli Voltas (2,116) Jungheinrich (1,978) Hyster Yale Utilev (1,293) Crown Hamech 1, 2 1 Toyota Kion Jungheinrich Hyster-Yale Crown Sources: Logistik Journal 10/2013; DHF Intralogistik 12/ Fiscal year: April to March. 2 Adjusted: Jan. to Dec As reported, before changes in accounting principles 13

14 Business Model and Strategic Issues

15 The Jungheinrich Business Model Serving customers from a single source over a trucks s entire life cycle: New Truck Business Logistics Systems Used Equipment After-Sales Services Full Service Customer Service / Maintenance Spare Parts Supply Customer Financial Services Short-Term Hire Fleet Mail-Order Business 15

16 New Truck Business Battery-powered counterbalanced truck (EFG /S40-S50) consumes up to 20% less energy than its predecessor model Hydrodynamically driven forklifts in diesel (DFG and DFG ) LPG (TFG and TFG ) variants with a payload capacity of up to 3.5 metric tons Front-seat, trilateral stacker (EFX ) achieves a 25% higher handling turnover rate than its predecessor model 2014: 20 new products Auto pallet mover: ERE 225a low-lift truck with automation solution 16

17 Deliveries by Industry Logistics Retail and wholesale (incl. food distribution) 48% 15% 12% 6% 14% Mechanical, automotive and electrical engineering 4% 1% Food industry (Production) Chemical industry Timber, paper and print industries Other industry sectors Based on incoming orders in terms of units in

18 Short-Term Hire Fleet Close-knit market coverage Hire periods: generally 1 day to 24 months Targeted degree of capacity utilization: 70% to 80% Inventory in thousand units %

19 Used Equipment Marketing of used equipment (leasing, short-term hire fleet and trade-ins) Expansion of the used equipment centre in Dresden Rise in production capacity from 4,500 to some 8,000 trucks p.a. 19

20 Productionn thousand units After-Sales Services High market penetration generates service potential (Jungheinrich market penetration: 2013 = 995,000 trucks) ~66,300 units Service potential In service Service expiring

21 Market Penetration Basis for After-Sales Services ~5,400 employees in the global after-sales service organization (46% of total staff), more than 3,800 after-sales service engineers in the field Market penetration in ,000 thousand trucks in use worldwide (with focus on Europe) 21

22 Logistics Systems Jungheinrich Partner for End-to-End Logistics Solutions Planning and design Forklift trucks Racking and storage equipment Conveyor systems Stacker cranes Warehouse management systems: Warehouse administration Warehouse control Radio data transmission, terminals & scanners System integration Maintenance and service 22

23 Expansion of the Logistics Systems Business Full acquisition of ISA* and integration of the warehousing and material flow technology software firm into the Jungheinrich Group as of January 1, 2013 and change in commercial name to Jungheinrich Systemlösungen GmbH as of January 1, 2014 Establishment of a division dedicated to logistics systems; responsibility: entire Board of Management Under the uniform management of Moosburg-based 'Jungheinrich-Logistiksysteme GmbH' since January 1, 2014 Significant increase in headcount 23 *ISA - Innovative Systemlösungen für die Automation GmbH, Graz (Austria).

24 Mail-Order Business in Germany, Austria and in the Netherlands Development of net sales in million % +12% +11% 42,3 Main catalogue: 1,000 pages More than 36,000 products

25 Financial Services Original value of contracts on hand in million ,332 1,719 +2% 1, Trucks in thousand units /31/ /31/ /31/2013 Proprietary financial service companies in 7 European countries 25

26 Financial Services Principles and Objectives Business policy No ambition to generate its own profits (non-profit centre) Disclosure of all income from financial services in sales New truck business/after-sales services/used equipment Sales policy Risk management 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 26

27 Business Development in 2013 and Current Business Trend

28 Net Sales Slightly up Year on Year; Decent EBIT in million Net sales EBIT 2,270 +1% 2, % Rise in net sales driven by the short-term hire and used equipment business and after-sales services The earnings trend benefited above all from the growth of the high-margin short-term hire and after-sales services businesses Negative effects of process-induced disruptions when ramping up the production in Degernpoint dealt with 2012 figures adjusted due to the application of the amended version of IAS 19 and various changes in the accounting treatment of interest income and expenses. 28

29 Breakdown of Net Sales by business fields 2013 = 2,290 million (2012 = 2,270 million) by region New truck business 52% (53%) After-sales services Germany 31% (30%) 27% (27%) Western Europe 51% (52%) 17% (17%) Short-term hire fleet and used equipment Rest of World 8% (8%) 14% (13%) Eastern Europe 29

30 Incoming Orders and Production New Truck Business in thousand units Incoming orders +7% % Q4 Production % Q Q Q Cyclically-driven rise in demand with greatest momentum in Q Production marginally down year on year 30

31 Intralogistics Segment Breakdown of Net Sales in million 2,288 +1% 2,315 New truck business 1,230-1% 1,213 Short-term hire fleet & used equipment % 397 Short-term hire and used equipment make equal contributions to growth After-sales services % 705 After-sales services post continuous growth

32 Research & Development and Capital Expenditures in million R&D Expenditures Capitalization ratio Capital Expenditures Capex ratio as a percentage of net sales Focal points: energy efficiency of drive systems, automation of material handling equipment and processes as well as development of platforms and shared components Capitalization ratio up as planned Capital expenditures in 2012 and 2013 marked by large-scale strategic projects for the expansion of spare parts logistics and manufacturing capacity Two sales centres completed in Germany 2012 figures adjusted due to the application of the amended version of IAS 19 and various changes in the accounting treatment of interest income and expenses. 32

33 Strategic Capex Projects Completed on Schedule and in Line with Budgets Spare parts centre in Kaltenkirchen Total capex: approx. 100 million Plant in Qingpu Capex: 35 million Capex: 40 million Plant in Degernpoint Capex: 18 million 33

34 Financial Situation in 2013: Solid as Before in million Change in % Balance sheet total 2,751 2, Shareholders equity Liquid assets and securities Cash flows from operating activities Net indebtedness ROCE 18.7% 21.6% 2012 figures adjusted due to the application of the amended version of IAS 19 and various changes in the accounting treatment of interest income and expenses. 34

35 Cash Flows from Operating Activities and Net Debt in million Cash flows from operating activities Net debt Financial liabilities - liquid assets and securities excl. liabilities from financial services or provisions for pensions) 'Cash' /31/ /31/ /31/ /31/2013 Decline mainly results from redemption of external financing of the short-term hire fleet and the increase in working capital Change caused by capital expenditures on large-scale strategic projects and the increase in working capital 2012 figures adjusted due to the application of the amended version of IAS 19 and various changes in the accounting treatment of interest income and expenses. 35

36 Working Capital and ROCE in million Working capital 21.0 as a percentage of net sales 21.9 Capital employed 21.6 ROCE in % /31/ /31/ /31/ /31/2013 Since 2012, interest-bearing capital includes provisions for pensions and provisions for non-current personnel obligations 36

37 Equity Ratio increases Jungheinrich Group Intralogistics Segment 42% 47% 27% 30% 12/31/ /31/ /31/ /31/ figures adjusted due to the application of the amended version of IAS 19 and various changes in the accounting treatment of interest income and expenses. 37

38 Business Trend Financial Services in milion Original value of new contracts Original value of contracts on hand 1, , Trucks in thousand units Decline due to increased demand for financial services for used equipment which has a lower value than new trucks Increase of just 26 million reflects the changed vehicle mix Leasing ratios in Italy, the United Kingdom and Norway > 60% 38

39 Workforce Trend Reflects Strengthening of Sales Organization in full time equivalent (FTE) +53 Technology +25 Other 11, Sales 11, ISA* 12/31/2012 Expansion in 2013: +579 employees = 5% 12/31/2013 *As of January : Jungheinrich Systemlösungen GmbH. 39

40 World Material Handling Equipment Market 2/2014 Growth Rates by Region in terms of units; compared to 2/2013 World Market Europe +5% thousands of units Western +8% 2/2013 2/2014 Eastern -14% Asia +27% thereof China +34% North America World +10% +12% Source: WITS 2/

41 Development of Business 2/2014 Incoming orders in million Incoming orders in units % ,200 +7% 13,000 2/2013 2/2014 Net sales in million 2/2013 2/2014 Production in units % , % 14,500 2/2013 2/2014 2/2013 2/

42 Development of Business 2/2014 Orders on Hand New Truck Business in million % 383 The order reach is four month 12/31/2013 2/28/

43 Outlook Growing with Passion 43

44 General Economic Situation Growth rates GDP in % Forecast 2014 World Eurozone Germany China USA Brazil India Source: Commerzbank February

45 World Material Handling Equipment Market in thousand units Europe % % 316 Asia % % 401 North America 2006 = % % e e e World % +7% 1, Estimate e Source: WITS. 45

46 Basic Conditions Improvement of the global economic environment; GDP forecast for the Eurozone: 0.9% growth (after -0.4% in 2013) World market expected to continue growing; European market expected to post positive development Sustained growth in Asia if the Chinese market continues its good recovery Sustained growth of the US market In 2013, by successfully completing its strategic investment projects, Jungheinrich established the prerequisites for benefiting from the positive market trend expected in 2014 (and in subsequent years) 46

47 Risks Economic stability in Europe Depreciation of currencies in emerging market countries Political situation in Ukraine Growth risks in China 47

48 Long-Term Strategic Expansion European business Asia Good point of departure thanks to established position Optimization of products and processes Focus on Eastern Europe above all on Russia Above-average expansion of business outside Europe focussing on China Singapore as the hub for Asia-Pacific Establishment of business in India ICE segment ICE Logistics systems business Market launch of the new converter generation starting in spring time 2014 Deepen market penetration Expansion of the logistics systems business Increase of the share of the system equipment market 48

49 Jungheinrich Group Outlook for 2014 Incoming orders Net sales 2.4 billion billion billion billion 1 Earnings before interest and taxes (EBIT) Capital expenditures on tangible assets Research and development expenditures ROCE 170 million million 2 85 million - 95 million ~ 45 million 15% and 20% incoming orders: 2.4 billion, net sales: 2.3 billion EBIT: 172 million. 49

50 50 60 Years of Passion for Logistics.

51 Disclaimer Since developments cannot be foreseen, the actual business trend may deviate from the expectations based on assumptions and estimates made by Jungheinrich company management. 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 forward-looking statements made in this presentation. 51

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