JH AR12 10 Group Management Report

7/27/2019 JH AR12 10 Group Management Report

1/47

28 | 0

Group management report>>> World material handling equipment market essentially stable >>> Target ore-

casts exceeded >>> EBIT reaches new record high >>> All business fields contributed

to the growth >>> Rapid progress in implementing large-scale strategic projects

>>> Research and development work stepped up considerably >>> Dividend increased


2/47

Management

TheJun

gheinrichshare

Groupmanagementreport

Groupovervie

w

Conso

lidatedfnancialstatements

Furtherinformation

The commissioning of our state-of-the-art

spare parts centre in Kaltenkirchen in

is a milestone in spare parts logistics.

Kai Fhrling, Head of Spare Parts Logistics

for the Jungheinrich Group


3/47

30 | 31 Jungheinrich proved itsel well in an environment characterized by

economic uncertainty. Incoming orders and net sales surpassed theprevious years gures. The Jungheinrich Group posted 150 million

in EBITa new all-time high. The global material handling equipment

market displayed nearly stable lateral movement. However, the size

o Jungheinrichs core markets in Europe shrank by 6 per cent. The

company succeeded in consolidating its share o the European market

despite this difcult market environment. Research and development

activities were intensied signicantly in 2012. Strategic capital ex-

penditure projects designed to expand spare parts logistics and manu-

acturing capacity made substantial inroads.

Business activity and organization

Corporate prole

An intralogistics specialist, Jungheinrich ranks

among the worlds leading companies in the

material handling equipment, warehousing and

material ow engineering sectors. As in the

previous year, the company ranked second in

Europe and third worldwide among producers

o material handling equipment. Jungheinrichis an intralogistics service and solution provider

with manuacturing operations, which oers

its customers a comprehensive range o orklit

trucks, shelving systems, services and advice.

The services primarily encompass the short-term

hire and sales nancing o products, equipment

maintenance and repair as well as reconditioning

and selling used equipment.

Jungheinrich operates an efcient, global

direct sales and service network with its own

sales centres and branch ofces in Germany

and proprietary sales and service companies in

the rest o Europe and the world. In addition,

Jungheinrich products are also distributed via

local dealersparticularly overseas. Its operations

are rounded o by a catalogue-based mail-order

business, which is run as an online store.

Factories and product rangeJungheinrich manuactures nearly all engine-

powered material handling trucks in our pro-

prietary plants in Germany. The production o

warehousing equipment is handled by the plants

in Norderstedt (Schleswig-Holstein) and Lands-

berg near Halle (Saxony-Anhalt) while counter-

balanced and narrow-aisle trucks are manu-

actured in Moosburg (Bavaria). Jungheinrich

produces small-series and specialized trucks

at its Lneburg (Lower Saxony) site. A selection

o low and high-platorm orklits as well as


4/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

battery-powered counterbalanced trucks is

manuactured or the Asian market in Qingpu

(China) where the production o reach trucks

was added in .

Another warehousing and system truck plant in

Degernpoint (Bavaria) in the immediate vicinity o

the main actory in Moosburg is currently under

construction. On completion, the corresponding

products, which have been manuactured by the

Moosburg plant thus ar, will be produced at the

new actory location. In Qingpu (China) a plant

is being built as well. On completion, production

will be transerred rom the actory location that

has been leased so ar to the new plant.Moreover, used equipment is industrially

reconditioned or the European market in a

dedicated acility near Dresden.

Group structure

Jungheinrich AG is active as a management

holding company and conducts operations on

a small scale. Its activity as management hold-

ing company comprises holding and managing

stakes in subsidiaries in Germany and abroad as

well as combining them under uniorm manage-ment. Furthermore, Jungheinrich AG operates

in the elds o central spare parts supply, central

research and development and property man-

agement. As the Jungheinrich Groups manage-

ment company, Jungheinrich AG is responsible

or the Groups strategic orientation as well as

determining and monitoring corporate goals. In

addition, the parent company handles manage-

ment, steering and controlling processes as well

as risk management and resource allocation.

Whereas subsidiaries are under Jungheinrich AGs

control, the Groups business areas companies

legal autonomy is preserved. Operations are run

by the individual management teams with the

support o corporate headquarters. The eco-

nomic ratios and reports submitted regularly to

the entire Board o Management are oriented to

inter-divisional business-management control

variables.

The Board o Management o Jungheinrich AG

acts and makes decisions with overall respon-

sibility or all o the Groups business areas.

Jungheinrichs business model is designed to

serve customers rom a single source over a

products entire lie cycle. In pursuing this goal,Jungheinrich denes itsel as a single-product

material handling equipment and warehousing

technology company.

The Intralogistics and

Financial Services segments

Segment reporting is in line with the internal

organizational and reporting structure. There-

ore, business activities are presented in the

two reportable segments, i.e. Intralogistics and

Financial Services. The Intralogistics segmentencompasses the ollowing business areas:

New truck business: development, production

and sale o new trucks including logistics

systems as well as the mail-order business;

Short-term hire: rental o new and used

material handling equipment;

Used equipment: reconditioning and sale o

used equipment and

Ater-sales services: the maintenance, repair

and spare parts businesses.


5/47

32 | 33 Activities undertaken by the Financial Services

segment encompass the pan-European usage

transer and sales nancing o material handling

equipment and warehousing technology prod-

ucts. Financial Services supports the operating

sales units in accordance with Jungheinrichs

business model. The Financial Services segment

nances itsel autonomously.

Strategic objectives

Part o the companys strategic ocus is on

achieving protable growth throughout the

Group and on permanently ranking among the

worlds three leading intralogistics service andsolution providers with manuacturing opera-

tions. Earnings expectations are primarily orient-

ed towards the EBIT return on sales, which is

intended to be above the competitions average.

Jungheinrich already commands a leading posi-

tion on the European marketpredominantly in

the warehouse technology product segment.

To supplement the above, the company aims to

strengthen its strategic position in the logistics

systems business in Europe and to signicantly

improve its position on the European market or

counterbalanced trucksabove all those with

IC engine-powered drives. On the Asian growth

market, the Group is expanding its sales network

and production site, concentrating on China. In

North America, Jungheinrich relies on its strong

sales partner Mitsubishi Caterpillar Forklit Inc.

(MCFA) which has a large dealership ootprint.

Corporate management

Jungheinrich manages its Group o companies

on the basis o selected key gures. The keyperormance indicators (KPIs) are unit-based

incoming orders, net sales, the EBIT return on

sales (ROS) as well as market shares. The Board

o Management monitors these KPIs using a

monthly reporting system.

The Group manages the economic usage o its

capital via the return on interest-bearing capital

tied down (return on capital employed).

General economic situationThe world economy lost momentum in .

This was primarily due to Europes sovereign debt

crisis. The ensuing uncertainty had an adverse

eect on the business cycle. The development o

the global economy continued to be marked by

major regional dierences. Whereas the rate o

expansion in China and other emerging countries

slowed considerably in some cases, the USA

displayed airly robust growth. On the strength

o the positive stimuli injected by reconstruction

work in Japan ollowing the natural catastrophe

in , the country also contributed to stabiliz-

ing the world economy.

The announcement by the European Central

Bank in September that it would intervene

and buy unlimited numbers o government

bonds rom crisis-ridden countries i certain

conditions were met generally calmed sentiment

and initially reduced the risk o a break-up o the

currency union.


6/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

In the last quarter o , the euro crisis

intensied once again, as it continued to ace

unresolved problems, especially in Greece and

Spain. In the USA, the scal cli dominated

public debates until the end o : Democrats

and Republicans were under pressure to reach

consensus on a budget or or ace spend-

ing cuts and massive tax hikes, which would

have plunged the US economy into a recession.

The pace o economic development in Ger-

many also decreased over the course o . In

October o , the io Business Climate Index,

which is considered an early indicator o eco-

nomic development in Germany, ell to its lowest

level since February . It started to marginally

trend back upwards thereater. Domestic investing

activity dropped, while exports made a decisive

contribution to growth in a difcult environment.

Growth rates of selected economic regions

Gross domestic product in %

Region 2012 2011

World 3.0 3.8

USA 2.2 1.8

China 7.8 9.3

Eurozone 0.5 1.5

Germany 0.7 3.0

Source: Commerzbank (as o February 2013).

The worlds gross domestic product climbed

by . per cent in (prior year: . per cent)

losing momentum. Stronger economic growth

was posted above all in Asia, where China andIndia posted substantial gains. Nevertheless,

growth in these countries slowed somewhat

as well. China posted a rate o increase o

. per cent (prior year: . per cent) and Indias

economy expanded by . per cent (prior year:

. per cent). Economies in Eurozone countries

contracted by . per cent (prior year: up

. per cent). In Jungheinrichs main sales coun-

tries besides Germany, namely France, Italy and

the United Kingdom, gross domestic product

either matched or ell short o its year-earlier

level. Frances economy stagnated (prior year: up

. per cent) with economic output in Italy and

the United Kingdom declining by . per cent

and . per cent, respectively (prior year: up. per cent and . per cent). Growth stimuli

came above all rom Eastern Europe, namely

Poland and Russia. In Poland, gross domestic

product advanced by . per cent (prior year:

. per cent) and Russias economy expanded

by . per cent (prior year: . per cent). The

rate o increase in the USA rose to . per cent

(prior year: . per cent). Growing by a mere

. per cent in the period under review (prior

year: . per cent) Germanys economy ell

ar short o the previous year. Order intake by


7/47

34 | 35 the German mechanical engineering sector

decreased by per cent in , whereas it

had advanced by per cent in the preceding

year. Foreign demand was at compared to

the year beore.

Market volume of material handling equipment

in thousand units

Region 2012 2011

World 944.4 974.6

Europe 310.5 330.6

thereo Eastern Europe 53.5 54.2

Asia 362.9 380.0

thereo China 216.7 238.3

North America 181.2 169.6

Other regions 89.8 94.4

Source: WITS (World Industrial Truck Statistics).

Global market for material handling equipment

by region in 2012


Europe 33%

Central/SouthAmerica 5%

Asia 38%

Arica 2%

North America 19 %

Australia/Oceania 3%

Development o the market or material handling equipment

Following the dynamic growth observed in ,

the world material handling equipment market

displayed virtually stable lateral movement in the

year being reviewed. In particular, Europe and

North America developed in opposite directions.

Development by regionIn sum, the global market volume slipped by

a mere per cent, rom . thousand units

in to . thousand pieces o material

handling equipment in the period under review.

Europe, Jungheinrichs main sales market,

recorded a signicant decline, shrinking by

per cent to . thousand orklits (prior

year: . thousand units). Whereas demand in

Western Europe dropped by per cent, the size

o the Eastern European market contracted by

a mere per cent. The North American market

experienced a marked increase, expanding by per cent to . thousand trucks (prior year:

. thousand units). Market volume in Asia

declined by per cent to . thousand ork-

lits (prior year: . thousand units). China

contributed to this, recording a substantial

drop o per cent to . thousand pieces o

equipment (prior year: . thousand units)

which could not be compensated or by the

strong, per cent growth posted by Japan.


8/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

Development by product segment

The product segments displayed greatly disparate

development. The size o the world market or

warehousing equipment decreased slightly, slip-

ping by per cent, to which Europe contributed

a decline o per cent. In the counterbalanced

truck segment, IC engine-powered orklits

were less in demand worldwide, causing market

volume to contract by per cent. Forklits with

battery-powered drives experienced a per cent

shrinkage o their global marketevidence o its

near-stability. In both truck categories, Europes

market volume experienced drops o more than

per cent.

Worldwide market volume of material handling equipment

in thousand units

333 539

2008 872

228 319

2009 547

297 497

2010 794

363 612

2011 975

356 588

2012 944

Warehousing equipment Counterbalanced trucks


Market volume of material handling equipment in Europe

in thousand units

199 176

2008 375

133 70

2009 203

165 103

2010 268

197 134

2011 331

185 126

2012 311

Warehousing equipment Counterbalanced trucks


Focal points and activities

Fiscal was dominated by Investing in the

Future. Accordingly, centre stage was taken

by large-scale strategic projects or enhancingcapacity, the intensication o research and

development activities, IT projects, and the

strengthening o sales.

Strategic capital expenditure projects

Our orward-looking investments are dedicated

to large-scale projects or the expansion o our

spare parts logistics and manuacturing capacity

as well as the construction o several sales sites.

Total associated capital expenditures in the year

under review and scal amount to some million.

Based on a new logistics concept, construc-

tion o a new spare parts centre in Kaltenkirchen,

which is situated north o Hamburg, commenced

in the autumn o . This capex project, which

has an investment volume o over million,

particularly aims to do justice to the extension

o the Groups international growth, the increase

o its product range spurred by the enlarged

truck portolio, as well as the mounting demands

placed on the sales organization and the dealer-

ship business. The rst test run is scheduled or

the second quarter o this year. It is expected to

become ully operational in the third quarter o.

The cornerstone or the new warehousing

and system equipment plant at the Degernpoint

(Bavaria) site, which has an investment volume

o approximately million, was laid in July o

. Construction o the shell was completed

by year-end. Interior work has already been

started. Plans envisage the actory opening in

the ourth quarter o the year underway.

Work on laying the oundations or the plant

in Qingpu (China) which is expected to requireabout million in capital expenditures, was

nished in the year being reviewed. The remain-

ing construction work is on schedule. Its in-

auguration is to take place in the third quarter o

. In the uture, the actory is to produce

equipment developed specically or the Asian

market as well.

Furthermore, new buildings have been planned

or three sales locations: two in Germany and

one in Slovenia. Applications or building permits

or the two German sales centres were fled in the


9/47

36 | 37 year under review, and the related construction

contracts have already been awarded. These

building projects should be concluded in the

ourth quarter o , with completion in Slo-

venia scheduled or .

Research and development

Seeking to strengthen its technological inno-

vative prowess, the company stepped up its

research and development activities signicantly

in the period being reviewed. The points o ocus

included the energy efciency o drive systems,

the automation o material handling equipment,

and the renement o counterbalanced truckspowered by IC engines.

IT projects

Activities in the eld o inormation technology

mainly concentrated on the convergence o the

diverse SAP production systems at our German

manuacturing sites, in Houston, and in Qingpu

to orm a single platorm.

We engineered the ISM Online eet manage-

ment system, an Internet and system platorm

enabling the commercial and technical datao customer orklit eets stemming rom

Jungheinrich SAP systems to be processed and

made available to end-customers.

Moreover, the Groups Web presence was

expanded by adding a wealth o new content, in

order or it to be used as a sales channel, among

other things. It eatures a new corporate design

and user-riendly navigation, providing all stake-

holders with a comprehensive oering.

Furthermore, all PC workstations the world

over were upgraded to Windows and Ofce

. The simultaneous commissioning o the

SharePoint system platorm markedly simplied

daily operations and project work while creating

new ways o collaborating across locations.

Strengthening the sales structure

The expansion o our sales operations resulted

in a signicant increase in headcount at our

domestic and oreign subsidiaries in the year

under review. A good per cent o the

employee increase in groupwide manpower

was attributable to sales. Among other things,

a dedicated sales company was established in

India as o July , .

Short-term hire feet

In , Jungheinrich had a short-term hire eet

o approximately thousand trucks (prior year:

thousand units). The short-term hire network

was enlarged above all in growth markets, namely

Russia and China. Trucks or short-term hire

can generally be hired or a maximum period o

months.

Strengthening logistics systems expertiseThe ull acquisition o ISA Innovative System-

lsungen r die Automation GmbH, based in

Graz (Austria) with eect rom January ,

bolstered the Jungheinrich Groups competence

as a supplier o logistics systems even urther.

Jungheinrich had held a per cent stake in ISA

since . Among ISA GmbHs oerings are

sotware or integrated, holistic material ow and

warehouse logistics solutions as well as associated

services such as project planning, implementation,

training and service.


10/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

Business trendkey figures

2012 2011

Incoming orders units 73,200 78,700

Incoming orders million 2,251 2,178

Production units 73,200 75,700

Orders on hand (12/31) million 2981 3051

Net sales million 2,229 2,116

1 Including 24 million in corrections to orders made in preceding years.

Business trend

General inormation on the development

o business in 2012

Jungheinrich proved itsel well in an environ-

ment characterized by economic uncertainty.

In Europe, demand or material handling equip-

ment decreased by per cent. Among other

things, this reected the per cent drop in the

companys unit-based incoming orders. More

than per cent o consolidated net sales was

generated in Europe, where the company con-

solidated its number two position on the market

among manuacturers o material handlingequipment.

Despite the shrinking market, both incoming

orders and net sales surpassed the correspond-

ing year-earlier gures. The net sales trend

beneted rom the strong growth displayed

by business with logistics systems and the rise

in demand or trucks or short-term hire. At

million, earnings beore interest and taxes

eclipsed the record achieved in the preceding

year, although research and development costs

were just over million higher. The return on

sales was . per cent (prior year: . per cent).

A development this positive had not been expect-

ed at the beginning o the nancial year.

Thereore, the orecasts or incoming orders and

net sales were raised when the gures or the

rst hal were reported in August o . The

net sales orecast was lited yet again in the nine-

month report in November .

Income ater tax at the Group level amounted

to million. Shareholders equity rose to over

million, driven by the positive earnings

trend, resulting in an equity ratio o per cent.As expected, the Jungheinrich Group did not

have any net debt, analogously to the previous

year. The Groups liquidity was secured at all

times.

In the year being reviewed, major progress

was made with construction measures taken to

increase capacity, which is o major importance

regarding the Jungheinrich Groups uture stra-

tegic positioning.

In sum, the Jungheinrich Group thus success-

ully stayed its course or protable growth.


11/47

38 | 39

Net sales

Net sales reect the stable order situation and

the good product mix. In the reporting year,

net sales were up million, or per cent, to

, million (prior year: , million). All

regions contributed to this growth. At 9 per cent,the share o consolidated net sales generated by

Jungheinrich in Europe was nearly unchanged

(prior year: per cent). In Germany, the single-

most important market, net sales climbed by

per cent to million (prior year: mil-

lion). Foreign net sales advanced by per centto , million (prior year: , million).

Incoming orders and orders on hand

Incoming orders in terms o units, which include

orders placed or new trucks and trucks or

short-term hire, decreased by per cent rom

. thousand to . thousand units. In addition

to the cyclically-induced decline in demand,

account should be taken o the act that a much

smaller number o orklit trucks was added to

the short-term hire eet in ollowing the

substantial expansion in the preceding year.

The value o incoming orders encompassing

all business areasnew truck business, short-

term hire and used equipment as well as ater-

sales serviceswas up per cent year on year to, million (prior year: , million). Despite

declining unit gures, the value o incoming

orders in new truck business was thus marginally

up on the year-earlier level. Contributing actors

included strong incoming orders in the logistics

systems business and the improved order situa-

tion in relation to IC engine-powered trucks.

Orders on hand in new truck business totalled

million as o December , (Decem-

ber , : million). This gure includes

corrections to orders made or orders prior to

. The year-earlier gure was thus adjusted

by million. As in the previous year, the order

range was approximately three months.

Production

Production output tracks the development o

incoming orders with a time lag. In the period

under review, it amounted to . thousand

units per cent down on the . thousand

units recorded in the preceding year. The declineis largely due to the reduction in the number o

warehousing equipment units. In terms o units,

warehousing equipment clearly constitutes

the companys largest product segment. Produc-

tion volume in the year being reviewed thus

remained below the pre-crisis level in

when . thousand orklits were manuactured.

Net sales by region

in million 2012 2011

Germany 598 571

Rest o Europe 1,449 1,394

Other countries 182 151

Total 2,229 2,116

Net sales

in million

1,588 557

2008 2,145

1,211 466

2009 1,677

1,323 493

2010 1,816

1,545 571

2011 2,116

1,631 598

2012 2,229

Abroad Germany


12/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

All business areas contributed to the uptick in

net sales. New truck business was up mil-

lion, or per cent, to , million (prior year:

, million). This includes intragroup truck

sales by the Intralogistics segment to the Finan-

cial Services segment resulting rom a revision

o the basic conditions underlying contracts witha key account. Excluding this eect, net sales

advanced by per cent. Business with logistics

systems was a key driver o the growth in net

sales posted by new truck business. Overall, short-

term hire and used equipment operations posted

a rise o per cent to million (prior year:

million). This could largely be traced back

to the signicant, nearly per cent, rise in net

sales achieved with trucks or short-term hire.

Net sales posted by ater-sales services increased

by per cent to 80 million (prior year: 49 mil-

lion) thus recording continued growth. The shareo total net sales accounted or by ater-sales

services thus remained stable, at per cent. The

expansion o the nancial services business was

reected in a per cent increase in net sales to

million (prior year: million).

As in the previous year, the oreign ratio was

per cent. Disproportionately strong increases

in net sales were achieved above all in France,

the Netherlands, Switzerland, Scandinavia and

Russia. Net sales generated outside Europe were

boosted by per cent to million (prior

year: million). Consequently, the non-

European share o consolidated net sales rose

marginally, rom per cent to per cent.

Growth in net sales in Asia had a strong impact.

Breakdown of net sales


New truck business 1,230 1,135

Short-term hire and used equipment 378 349

Ater-sales services 680 649

Intralogistics segment 2,288 2,133

Financial Services segment 497 451Reconciliation 556 468

Jungheinrich Group 2,229 2,116

Cost structure according to the income statement


Cost o sales 1,558 1,482

Selling expenses 418 396

Research and development costs 44 37General administrative expenses 65 59


13/47

40 | 41 The cost o sales advanced by per cent to

, million (prior year: , million) increas-

ing proportionate to net sales. At per cent, the

proportion o consolidated net sales accounted

or by the cost o sales did not change. Lower

plant capacity utilization was oset by efciency

enhancements. Selling expenses posted a nearly

proportionate rise, advancing by per cent to

million (prior year: million) with the

share o consolidated net sales accounted or by

selling expenses remaining at per cent. The

strengthening o the sales networkparticularly

in the growth regionscame to bear. Among

the additional contributing actors were theestablishment o the Indian sales company and

the expansion o sales structures in China. The

increase in headcount, which primarily served

to strengthen the logistics system business,

also let its mark. In the year being reviewed,

the Jungheinrich Group stepped up its capital

expenditures on the development o its products.

By consequence, research and development costs

rose substantially, climbing a good million, or

per cent, rom million to million. The

company is thus underscoring the substantial

signicance o research and development

activities with respect to the Groups continued

strategic development.

General administrative expenses rose by

million to million (prior year: million).

This was partially due to the increase in IT costsassociated with projects implemented by the

Group to improve processes and integrate IT

systems.

Earnings position

In the year under review, the Jungheinrich Group

continued the outstanding earnings trend it had

experienced in the previous year. With mil-

lion in earnings beore interest and taxes, thecompany closed the nancial year with a

result that surpassed the record posted in the

preceding year. Earnings beneted above all

rom the growth o the high-margin short-term

hire and ater-sales services businesses.

The gross prot on sales rose by million,or per cent, to million (prior year:

million).

Earnings trend


Gross proit on sales 671 634

Earnings beore interest, taxes, depreciation and amortization (EBITDA) 325 298

Earnings beore interest and taxes (EBIT) 150 146

Financial income (loss) 4 2

Earnings beore taxes (EBT) 154 148

Income taxes 44 43Net income 110 106


14/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

EBITDA (earnings beore interest, taxes, deprecia-

tion and amortization) which reect operating

income aecting liquidity advanced by mil-

lion to million in the year being reviewed

(prior year: million). Earnings beore interest

and taxes (EBIT) rose by million, or per cent,

to million (prior year: million). The

EBIT return on sales (ROS) was . per cent

(prior year: . per cent). In this context, account

should be taken in particular o the act that

over million more in terms o research and

development costs had to be shouldered.

Earnings beore taxes (EBT) grew to million

(prior year: million). The increase in thenancial result compared to the previous year

was signicantly aected by the positive devel-

opment o interest income in the Financial

Services segment.

The income tax payable or the Jungheinrich

Group rose slightly, advancing to million

(prior year: million). The Groups tax quota

amounted to . per cent (prior year: . per

cent). Net income improved by million to

million (prior year: million). The record

earnings posted in the preceding year were thus

surpassed. Earnings per preerred share grew to

. (prior year: .).

In view o the continued improvement o the

earnings trend, the Board o Management o

Jungheinrich AG proposes a dividend o .

per ordinary share (prior year: .) and o

. per preerred share (prior year: .). This

corresponds to a dividend payment o . mil-

lion (prior year: . million).

Value added

The ollowing value added statement shows the

work perormed by the Jungheinrich Group in

the nancial year, minus all advance work

and depreciation as well as its usage.

Value added statement

in million 2012 % 2011 %

Source

Total Group output1 2,285 100.0 2,169 100.0

Cost o materials and equipment 1,239 54.2 1,197 55.2

Depreciation 174 7.6 152 7.0

Net value added 872 38.2 820 37.8

Usage

Employees 674 77.3 629 76.7

Public sector 44 5.0 43 5.3

Lenders 43 4.9 43 5.3

Shareholders 25 2.9 18 2.1

Company 86 9.9 87 10.6

Net value added 872 100.0 820 100.0

1 Including interest income, other operating income and income rom investments.


15/47

42 | 43

Balance sheet structure

As o 12/31 Assetsin %

Intangible assets and tangible assets 12.8 12.2

Trucks or short-term hire and leasethereo rom inancial services

16.98.9

16.78.2

Financial assets 0.5 0.6

Other non-current assetsthereo rom inancial services 18.114.9 17.714.4

Inventories 9.2 9.6

Other current assetsthereo rom inancial services

22.46.3

23.56.3

Liquid assets and securities 20.1 19.7

2012 2011

Net value added created by the Group amount-

ed to million (prior year: million)

per cent more than in the preceding year.

The usage statement shows that, as beore, the

lions share o net value added ( million, or

per cent) was used or employees (prior year:

million, or per cent). The public sector

received million, representing per cent

(prior year: million, or per cent). As in the

previous year, lenders partook o million, or

per cent. Ordinary and preerred shareholders

received some million, or per cent (prior

year: about million, or per cent). The com-

pany had million, or per cent, o net value

added at its disposal or internal business nanc-

ing (prior year: million, or per cent).

Shareholders equity and liabilities

in %

Shareholders equity 29.3 27.8

Provisions or pensions 5.3 5.6

Non-current inancial liabilities 7.8 8.4

Other non-current liabilitiesthereo rom inancial services

26.821.5

26.320.7

Current inancial liabilities 5.7 5.1

Other current liabilitiesthereo rom inancial services

25.18.9

26.89.0

2012 2011

Asset and nancial position

The primary objectives o the nancial manage-

ment system are saeguarding the JungheinrichGroups liquidity and creditworthiness while

ensuring access to money and capital markets

at all times and increasing the companys value

over the long term. The aim is to saeguard the

Groups nancial autonomy. When investing

surplus liquidity reserves, the company pursues

a conservative investment policy that ocuses on

preserving assets instead o maximizing prots,

in light o the uncertainty prevailing on nancial

markets.

Jungheinrich AG is in charge o operations andstrategic nancial management or the Group

and its subsidiaries. Financial resources and

payment ows o domestic and oreign Groupcompanies are optimized as regards interest and

currency aspects via a cash and currency man-

agement system. Financing needs in the short,

medium and long term are covered on interna-

tional money and capital markets, exhausting all

possible nancing options.

The Jungheinrich Group was able to ully meet

its payment obligations and secure its nancing

beyond the period under review at all times.

The Jungheinrich Groups nancial situation

developed positively in the year being reviewed.


16/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

In the period under review, cash ows rom

operating activities amounted to million.

The million recorded a year earlier was

adversely aected above all by the signicant

build-up o working capital ( million).

Despite the growth in business volume, working

capital experienced a pleasingly small change,

dropping by a mere million in the period

being reviewed, predominantly because much

less in trade accounts receivable and inventorieshad been accumulated by the end o the year.

The reduction in trade accounts payable had

a counteracting eect. In addition, the rise in

depreciation had a positive impact (up mil-

lion). A counteracting eect was elt rom other

changes, which were down million (prior

year: up million) primarily as a result o the

year-on-year increase in income tax payments

and the change in other non-cash income and

expenses. The volume o trucks or short-term

hire and lease and receivables rom nancial

services added, minus the change in associated

nancing was essentially unchanged compared

to the previous year.

Cash ows rom investing activities were

adjusted to exclude the balance o payments

made or the purchase and proceeds rom the

sale o securities included in this item totalling

million (prior year: million) or reasons

o comparison. At million, the resulting

cash ows rom investing activities were mil-

lion up on the year-earlier level ( million).They primarily reect the substantial cash

outow or large-scale strategic projects, i.e. the

spare parts centre, the warehousing and system

equipment plant, and the actory in China.

Cash ows rom nancing activities amount-

ed to million (prior year: million).

The million dividend payment (prior year:

million) was mainly contrasted by an accrual

o short-term liabilities due to banks resulting

rom the strategic local credit nancing o or-

eign subsidiaries in the Eurozone. When drawing

comparisons to the preceding years cash ows,

Statement of cash flows


Net income 110 106

Depreciation 174 152

Changes in trucks or short-term hire and trucks or lease (excluding depreciation)and receivables rom inancial services 207 218

Changes in liabilities rom inancing trucks or short-term hire and inancial services 76 89

Changes in working capital 11 78

Other changes 14 14

Cash lows rom operating activities 128 65

Cash lows rom investing activities1 84 56

Cash lows rom inancing activities 2 51

Net cash changes in cash and cash equivalents1 42 42

1 Excluding the balance o payments made to purchase/proceeds rom the sale o securities amounting to a negative 25 million (prior year: 26 million).


17/47

44 | 45 account should be taken o the act that it was

characterized by the redemption o a mil-

lion promissory note bond. Changes in cash and

cash equivalents aecting payments totalled

+ million (prior year: million). Taking

the purchase and sale o securities into account,

changes in cash and cash equivalents aecting

payments amounted to + million (prior year:

million).

The detailed statement o cash ows is in-

cluded in the consolidated nancial statements

o Jungheinrich AG.

Asset and capital structure

By year-end, the balance sheet total had risen by

million, or per cent, to , million rom

, million.

Asset structure

in million 12/31/2012 12/31/2011

Non-current assets 1,402 1,329

Intangible and tangible assets 354 315

Trucks or short-term hire and lease 467 432

Receivables rom inancial services 410 372

Other non-current assets (including inancial assets) 101 98

Securities 70 112

Current assets 1,355 1,251

Inventories 254 248

Trade accounts receivable 397 407


Other current assets 45 36

Liquid assets and securities 485 397

Balance sheet total 2,757 2,580

Intangible and tangible assets rose rom

million by million to million.

Tangible assets primarily reect strategic capital

expenditure projects, i.e. the spare parts centre,

the warehousing and system equipment plant,

and the actory in China.

The value o trucks or short-term hire and

lease on hand increased by million, rom

million to million. The value o trucks

or short-term hire rose by a marginal million

to million (prior year: million). The dis-

posals resulting rom the transer o equipment

rom the Intralogistics segment (trucks or

short-term hire) to the Financial Services seg-

mentbased on the new contractual situation

with a key accountwere more than oset by


18/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

continuous additions o trucks or short-term

hire. The value o trucks or lease rom the

nancial services business rose by million

to million (prior year: million). Slightly

more than two-thirds o this increase was attrib-

utable to the aorementioned transer.

Non-current and current receivables rom

nancial services were up by a total o mil-

lion to million as a result o targeted busi-

ness growth (prior year: million). Inventories

posted a slight gain, advancing by million to

million (prior year: million). By the

cut-o date, current trade accounts receivable

had dropped by million to million (prior

year: million). Liquid assets and securities

were up by a total o million to million

(prior year: million).

Capital structure

in million 12/31/2012 12/31/2011

Shareholders equity 807 718

Non-current liabilities 1,101 1,040

Provisions or pensions and similar obligations 147 146

Financial liabilities 216 216

Liabilities rom inancial services 594 534

Other non-current liabilities 144 144

Current liabilities 849 822

Other provisions 153 154

Financial liabilities 156 131


Trade accounts payable 158 172

Other current liabilities 136 132

Balance sheet total 2,757 2,580

Equity ratio

in %

2008 28.7

2009 24.8

2010 26.4

2011 27.8

2012 29.3

Shareholders equity advanced by million to

million (prior year: million) driven by

the persistently good net income in the period

under review. This was mainly contrasted by the

dividend payment or scal amounting to

approximately million (prior year: 8 million).

At million, provisions or pensions were

essentially unchanged (prior year: million).

Other non-current and current provisions

increased marginally, rising by a total o mil-

lion to million (prior year: million).

The Groups non-current and current nancial

liabilities were up million to million

(prior year: million). This was primarily due

to the accrual o current liabilities to banks. At

million, non-current and current liabilities


19/47

46 | 47

The return on interest-bearing capital employed

(ROCE) excluding liabilities rom nancial

services dropped to . per cent (prior year:

. per cent). The Jungheinrich Groups long-

term ROCE target o over per cent wasexceeded.

The return on equity decreased as well,

amounting to . per cent in scal (prior

year: . per cent). The return on total capital

employed, adjusted to exclude liabilities and

interest income rom nancial services, declinedto . per cent (prior year: . per cent).

rom fnancial services were 73 million up on the

77 million recorded a year earliera marked

gain. By the cut-o date, trade accounts payable

had dropped by million to million (prior

year: million).

The Jungheinrich Groups complete balance

sheet is included in Jungheinrich AGs consoli-

dated nancial statements.

Key nancials

Despite the rise in the balance sheet total, the

Groups equity ratio improved rom per cent

to per cent. Adjusting the consolidated gures

to exclude all o the eects o the Financial Ser-vices segment results in an equity ratio relative to

the Intralogistics segment o 4 per cent (prior

year: per cent).

The Jungheinrich Groups net debt is the result

o the subtraction o liquid assets and securities

rom fnancial liabilities. Financial liabilities include

liabilities due to banks, the promissory note bond,

liabilities rom nancing trucks or short-term

hire, leasing liabilities associated with tangible

assets, and notes payable.

In the year under review, the company still had

no net debt on its books. Instead, it had a net

credit o million (prior year: million).

In consequence, the degree o indebtedness,

dened as the ratio o net debt to EBITDA, was

negative, as in the preceding year. Underlying

EBITDA is adjusted to exclude the depreciation

o trucks or lease rom nancial services and

amounted to million in the year beingreviewed (prior year: million).

The Jungheinrich Groups positive earnings

and nancial position in scal is reected

in the high returns on capital.

EBIT return on sales

in % (ROS)

2008 5.7

2009 4.3

2010 5.4

2011 6.9

2012 6.7

EBIT return on capital employed

in % (ROCE) 1

2008 18.8

2009 16.8

2010 22.7

2011 26.2

2012 24.1

1 EBIT as a % o the interest-bearing capital employed (excluding liabilitiesrom inancial services and provisions or pensions).

Key return indicators

in % 2012 2011

EBIT return on capital employed (ROCE) 24.1 26.2

Return on equity 14.5 15.6

Return on total capital employed 5.9 6.3

EBIT return on capital employed (ROCE) = EBIT : Employed interest-bearing capital1 x 100Return on equity ater income taxes = Net income : Average shareholders equity x 100Return on total capital employed = Net income2 + Interest expenses : Average total capital 3 x 1001 Shareholders equity + Financial liabilities Liquid assets and securities.2 Net o the interest income rom nancial services.3 Net o liabilities rom nancial services.


20/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

Given its assets and associated liabilities, the

Financial Services segment (see the section on

nancial services on page ) exerts signicant

inuence on the Jungheinrich Groups balance

sheet structure. Thereore, the eects o the

Financial Services segment are eliminated

rom certain key gures, in order to improve

inormational value and comparability to other

companies. In consequence, as regards key

perormance indicators o relevance to credit-

worthiness and credit ratings, the Group man-

ages its nances in line with the principles and

objects o the captive nance approach.

Specically, the Financial Services segment

is excluded rom the Groups key gures relating

to the capital structure, net nancial liabilities

and the nancial income (loss). This key data

thus solely relates to the Intralogistics segment.

Return on equity after income taxes

in %

2008 13.0

2009 9.4

2010 14.0

2011 15.6

2012 14.5

Return on total capital 1

in %

2008 5.7

2009 3.3

2010 5.5

2011 6.3

2012 5.9

1 Not including inancial services.

Key financials of the Jungheinrich Group

Jungheinrich Group Intralogistics segment

in million 12/31/2012 12/31/2011 12/31/2012 12/31/2011Shareholders equityBalance sheet totalEquity ratio

807

2,757

29 %

7182,58028 %

872

1,928

45 %

7831,82343 %

Financial liabilitiesLiabilities rom inancial servicesOther liabilities/receivablesvis--vis ailiated companies

372

840

348767

369

16

344

25

1,212 1,115 385 369

Liquid assets and securitiesNet inancial liabilities

555

657

509606

538

153

490121

Financial income (loss) 4 2 13 12

Capital expenditures

Capital spent by the Jungheinrich Group on tan-

gible and intangible assets excluding capitalized

development expenditures was up million

to million in the reporting year (prior

year: million). The rise is clear evidence o

the act that investing activities are oriented

towards growth and shaping the uture. Among

the major capital expenditures on the uture are

the new spare parts centre, the new warehousing

and system equipment plant, and the construc-

tion o the actory in China. In addition, capital

was spent on expanding domestic production

plants, ocussing on the Norderstedt site. The

capital expenditures-to-net sales ratio rose to

. per cent (prior year: . per cent).


21/47


22/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

sotware or control systems. Furthermore, our

products benet rom the extensive expertise o

suppliers and partners. Fundamental research

pools the development o technologies, the

engineering o components, a central testing

department, product design, standardization and

central innovation management.

The lions share o research activities is under-

taken centrally, by the Technology Engineering

Department. The company is a member in the

Drive Technology Research Association (FVA)

and the Intralogistics Research Association (IFL)

which enables it to evaluate new technologies

in a timely manner and explore opportunitiesor promising innovations. Jungheinrich is also

involved in major research projects, e.g. in ISI-

WALK, which develops methods and technol-

ogies or the efcient design and economical

operation o exible supply chains. Points o

ocus are the exible design o transportation,

warehousing and IT systems as well as methods

or planning and assessing exibility.

Fundamental research

Jungheinrich has conducted undamentalresearch to thoroughly analyze lithium-ion cells

in products o various manuacturers with global

operations. Due to the positive properties o

lithium-ion batteries, a substantial portion o

lead batteries can be expected to be replaced

by lithium-ion technology in the medium term.

Thereore, it is o utmost importance to obtain

good access to the procurement market in time

to be able to source high-quality and aordable

battery cells.

Further emphasis was placed on innovative

truck concepts, with a view to making use o

the new technological options provided by drive

and energy storage systems in solutions with the

highest possible customer benet.

Other areas addressed in-depth by unda-

mental research activities were driver-assistance

technologies and orklit automation with the

aim o increasing exibility and perormance.

Special signicance is accorded to this eld o

innovation, as drivers are always the biggest

cost actor in the deployment o orklit trucks.

Product improvements in this area provide cus-

tomers with signicant economic advantages.

The use o standardized control architectures

and communication techniques enables theincreased use o shared parts while improving

the reliability o electronic systems. Thereore,

such a control architecture beneting rom all

new developments was designed.

By employing innovative engineering methods,

product developments can achieve a high degree

o maturity in the early stages o a project. Inte-

grating these methods in the standardized prod-

uct creation process raises the overall efciency

o development work.

Product engineering

The gaps in the upper perormance class o

the portolio o IC engine-powered trucks were

closed. In the year being reviewed, the hydro-

static drive-equipped IC engine-powered coun-

terbalanced truck (DFG/TFG ss) which

has a high level o ride comort and is especially

well suited to take on dynamic tasks was intro-

duced to the market.

So ar, the heavy-duty orklit, which is capable

o handling payloads o six to nine metric tons

(DFG/TFG ) has been purchased by


23/47

50 | 51 one supplier. Ater this vendor discontinued

production, Jungheinrich AG bought machines

and acilities, industrial property rights as well

as the technical and commercial know-how

to manuacture these orklit trucks. These IC

engine-powered counterbalanced trucks have

been produced in the Moosburg plant since

December o . Synergies with the manuac-

ture o lower-payload orklits will arise over the

longer term.

The battery-powered counterbalanced truck

(EFG -) is setting new standards in terms

o energy efciency. Thanks to the Efciency

and DrivePlus variants, this orklit truck canbe adapted to satisy customers individual

requirements, in line with the product strategy o

oering a piece o entry-level equipment which

can be signicantly upgraded by adding options.

Lateral battery removal, already a eature o

battery-powered counterbalanced trucks with

lower payload capacities, simplies the exchange

o batteries considerably.

The new low-platorm truck (ERE ) was

adapted to the Landsberg actorys synchronized

production. This orklit truck is also in line withthe Base plus Options product strategy. Energy

consumption was reduced by per cent vis--

vis the predecessor model while improving the

handling turnover rate.

The new order picker/trilateral stacker

(EKX ) has shipped standard with transponder

technology since . As a result, this truck

series can be operated using Jungheinrichs

warehouse navigation system. In practice, this

enables productivity to be enhanced by up to

per cent. Furthermore, per cent less

energy is used per pallet handling operation

relative to the competitions comparable orklit

trucks.

The company is staying abreast o the trendtowards automated solutions and driverless

transportation systems and launched three mass-

produced automatic orklit variants belonging to

the order picker/trilateral stacker (EKXa), vertical

order picker (EKS a) and high-platorm truck

(ERC a) product categories. The requirement

that had to be satised was that orklit trucks

developed to be mass produced be automated

instead o designing special trucks. Since all

o the key eatures o these orklit trucks are

already controlled electronically, they could be

automated easily and extremely reliably.


24/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

Financial services

Organization and business model

All o the Jungheinrich Groups nancial service

activities are pooled in the Financial Services

segment and are managed centrally via

Jungheinrich Financial Services International

GmbH and Jungheinrich Finance AG & Co. KG.

Within the Jungheinrich Group, the Financial

Services segment acts as a non-prot centre,

rendering services to Jungheinrichs sales opera-

tions without the right to generating prots.

By oering a range o individual, exible and

competitive nancial services and drawing on itspan-European direct sales network and in-house

service operations, the sales organization can

meet customer expectationsalso with respect

to providing orklit truck support across country

borders.

In the core European markets o relevance to

Jungheinrich, the company is represented by its

own nancial services companies. In addition to

Germany, Italy, France and the United Kingdom,

this is also the case in the Netherlands, Spain

andsince in Austria as well. Continuousexpansion is envisaged in urther European

countries. Moreover, access to the capital market

was acilitated by virtue o Luxembourg-based

Elbe River Capital S.A., a company established in

solely or renancing purposes.

Jungheinrichs business model is designed

to serve customers over a products entire lie

cycle. As a rule, the nancial service agreements

oered are connected to a ull-service or main-

tenance contract. Against this backdrop, the

individualized usage transer oerings and sales

nancing serve the purpose o promoting sales

and retaining customers over the long term. The

average maturity o the nancial service agree-

ments is ve years.

With the exception o customer credit and

renancing risks, all income and risks resulting

rom nancial service agreements entered into

with customers are assigned to the operating

sales units. These primarily include income rom

service contracts linked to nancial service

agreements as well as opportunities and risks

arising rom residual value warranties and the

marketing o returned trucks.In the nancial year, the Financial Services

segment displayed positive development in nearly

all regions. Contract volume rose by per cent

rom . billion to more than . billion.

Types o contracts and accounting

For accounting purposes, in compliance with

IFRS accounting policies, long-term nancial

service agreements concluded directly between

customers and Jungheinrich companies or

between customers and Jungheinrich withan external leasing company as intermediary

(reerred to as vendor agreements) are recog-

nized in assets as leased equipment (operating

leases) or as receivables rom nancial services

(nance leases). Due to the strategic ocus,

about three-quarters o all contracts are nance

leases.

These long-term customer agreements are

renanced with identical maturities and interest

rates and disclosed as liabilities rom nancial

services. Cash ows rom customer contracts

usually at least cover renancing instalments paid


25/47

52 | 53 to lending institutions or this business. Further-

more, deerred net sales stemming rom sales

proceeds already generated with an intermediate

leasing company are stated under deerred

income.

Business trend

In the period under review, groupwide contracts

on hand totalled a good thousand orklit

trucks.

Financial services: income statement


Net sales 497 451

Cost o sales 496 448

Gross proit on sales 1 3

Selling expenses 8 6

Earnings beore interest and taxes (EBIT) 7 3

Financial income (loss) 17 14

Earnings beore taxes (EBT) 10 11

million in long-term nancial service agree-ments were concluded in scal (prior year:

million). Sales rom more than every third

new truck in Europe were thus generated within

the scope o the nancial services business.

per cent o the new contract volume was

allocable to countries in which Jungheinrich has

proprietary nancial services companies. Special

mention should be made o the companies in

Italy and France, which both posted substantial

gains in volume o over per cent. By the end

o , the pan-European volume o contracts

on hand had risen by per cent to . thou-sand orklits (prior year: . thousand units).

This corresponded to an original value o

, million (prior year: , million).

Earnings position

The million rise in net sales rom mil-

lion to million reects the purposive expan-

sion o the nancial services business. Selling

expenses increased due to the growth-induced

structural adjustments to local nancial services

companies.

Financial services: new contracts and contracts on hand


Original value o new contracts 431 391

Original value o contracts on hand (12/31) 1,719 1,611


26/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

The rise in liabilities rom nancial services stems

rom the build-up o contracts on hand.

Financial services: asset structure

in million 12/31/2012 12/31/2011

Non-current assets 721 647

Trucks or lease rom inancial services 302 269


Other non-current assets 9 6Current assets 337 314

Inventories 24 23

Trade accounts receivable 66 58


Other current assets 57 50

Liquid assets 16 20

Balance sheet total 1,058 961

Financial services: capital structure

in million 12/31/2012 12/31/2011

Shareholders equity 35 26

Non-current liabilities 636 577


Other non-current liabilities 42 43

Current liabilities 387 358


Trade accounts payable 86 78

Other current liabilities 55 47Balance sheet total 1,058 961

Asset and capital structure

The continuous expansion o the nancial ser-

vices business is having an impact above all on

the balance sheet. This aects both the trucks or

lease recognized as assets as well as receivables

rom nancial services. Due to the revision o the

basic contractual conditions with a key account,

slightly more than two-thirds o the increase

in the value o trucks or lease rom nancial

services was attributable to the transer o equip-

ment rom the Intralogistics segment (trucks or

short-term hire).


27/47

54 | 55 Employees

In the period under review, the Jungheinrich

Group enlarged its workorce, primarily strength-

ening its sales operations. Groupwide headcount

(in terms o ull-time equivalentsFTEs) was

up by employees, or per cent, to ,

(prior year: ,) by the end o . More

than per cent o this increase is due to new

personnel hired by the sales organizationpre-

dominantly abroad.

Personnel expenses rose by million to

million (prior year: million). O this

sum, million (prior year: million) wasallocable to salaries, while 3 million (prior year:

million) was allocable to social security

contributions.

Since Jungheinrich AG is a member o the

German Employers Association, the arrangements

based on the collective bargaining agreement

reached in were adopted or our German

business. The collective bargaining agreement

expires on April , .

Establishing business in growth markets

As part o the growth strategy pursued in Asia,

the labour orce o Jungheinrich companies in

the regionocussing on Chinawas enlarged

by a total o per cent, or employees. By

year-end, o them were working or the sales

company ounded in India in the second quarter

o . Sales companies in the Russian and

Brazilian growth markets are also hiring new sta

members to meet their needs. Furthermore, the

logistics system and mail-order businesses also

increased manpower in order to set themselvesurther apart rom the competition.

Employees by unction

O the permanent sta (excluding contract

workers) per cent worked in sales and admin-

istration and per cent were active in manu-

acturing. As in the preceding year, per cent

o the workorce was allocable to the ater-sales

services organization, accounting or , (prior

year: ,) employees. Worldwide, , (prior

year: ,) ater-sales service engineers wereactive in the service organization.

Employees by function

in FTEs 12/31/2012 12/31/2011

Ater-sales service engineers 3,735 3,561

Factory engineers 228 213

Production 1,451 1,376

Sales agents 877 760

Oice sta 4,497 4,313

Temporary workers 143 179

Apprentices 330 309Jungheinrich Group 11,261 10,711

Employees

As o 12/31

5,834 4,950

2008 10,784

5,473 4,793

2009 10,266

5,477 4,661

2010 10,138

5,786 4,925

2011 10,711

6,094 5,167

2012 11,261

Abroad Germany


28/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

In the period being reviewed, temporary per-

sonnel was again used to oset capacity uc-

tuations in manuacturing operations. Averaged

or the year, they increased in number by just

under per cent to . About per cent

o them worked in domestic plants (prior year:

per cent). As o December , ,

(prior year: ) contract workers were active

within the Group.

Regional distribution

Eective on December , , , (prior

year: ,) employees, or per cent o the

labour orce, worked abroad. Germany account-ed or , (prior year: ,) sta members.

This corresponded to per cent o the labour

orce.

Abroad, France represented the biggest share,

or . per cent, ollowed by Italy and the UK,

with about . per cent and . per cent, respec-

tively. The proportion o the headcount active in

Asia and the Americas rose rom . per cent to

. per cent.

Training in the Jungheinrich Group

As o December , , the Jungheinrich

Group employed (prior year: ) appren-

tices, (prior year: ) o whom worked in

Germany, where the company oers training or

apprenticeable proessions.

In addition, a selection o collaborative courses

o study is oered. Jungheinrich provides young

adults with a variety o points o entry to the

companyespecially via collaborative courses

o studywhile covering its need or budding

proessionals in the commercial and technical

elds with qualied employees rom within its

own ranks. This educational model alternatesbetween compact units at universities that last

or a limited period o time and assignments in

companies. This enables program participants to

obtain an internationally recognized Bachelors

degree in business management, business

computer sciences or economic engineering in

a mere three years. In , the share o appren-

tices pursuing collaborative courses o study rose

rom per cent to per centrelative to the

number o apprentices in Germany.

Employee data

12/31/2012 12/31/2011

Average age in years 41.2 40.9

Years o service 11.4 11.5

Turnover in % 4.3 4.0

Sickness rate in %1 5.1 5.1

Thousand employee rate1, 2 29 32

Women quota in % 19.5 19.0

1 Relative to employees in Germany.2 Number o reportable working and commuting accidents or every 1,000 employees.

Apprenticeable professions1

As o 12/31

5% B.Sc.Industrial engineers

5% Othercommercial proessions

18% Industrialclerks

33% Industrialmechanics

17 % Mechantronicsengineers

8% B.A. in BusinessAdministration

7% Oice clerks

7% Othertechnical proessions

1 Basis: 225 trainees and apprentices in Germany.

Employees by region

As o 12/31/2012 (12/31/2011)

China 3.9 (3.6) %

America and Asia (excluding China)2.8 (2.3) %

France8.4 (8.6) %

Germany45.9 (46.0) %

Italy 7.1 (7.4) %

United Kingdom6.6 (6.8)%

Spain2.9 (3.1) %

Rest o Europe22.4 (22.2) %

Social data


29/47

56 | 57 In the year under review, the average age o

the Jungheinrich Groups personnel rose to

. This put Jungheinrich slightly below the

-year age average which is representative

or the German mechanical engineering sector

(source: German Engineering Federation, ).

At just over , years o service were on par year

on year. The . per cent turnover was primarily

due to the comparatively higher turnover in

oreign sales units. In Germany, turnover was

a mere per centan indication o the high

level o employee satisaction at Jungheinrich.

At . per cent, the sickness rate, which only

relates to domestic sta members, was stable.This roughly corresponds to the sector average

or comparable companies that are members

in the NORDMETALL employer association. The

number o reportable working and commuting

accidents or every , employees in Germany

decreased rom in the previous year to .

The women quota rose by . percentage points

year on year to . per cent, surpassing the

. per cent yardstick commonly applied to our

branch o industry (source: German Engineering

Federation, ).

Responsibility or employees

As the largest employer o engineers, the German

mechanical and plant engineering sector depends

on young, qualied proessionals. Thereore,

attracting talent is also one o Jungheinrichs

major challenges. In this context, the Group

attaches substantial importance to diversity,

promoting women in managerial positions, and

equal opportunities or employees o various

nationalities and age groups.

Equally as important as the recruitment o

new talent is the continued development and

qualication o the existing workorce. This is a

task that is handled by HR Management, whichidenties the need or development and puts

together suitable seminar oerings.

Moreover, the company works closely together

with public educational and teaching institutions

to promote excellence. To this end, the company

supports the Dr. Friedrich Jungheinrich Founda-

tion, which helps promote science and research,

while advancing education in the elds o

electrical and mechanical engineering as well

as logistics.

Compensation report

Jungheinrichs management pursues the principle

o value-oriented management that aims to

make the company increasingly successul over

the long term. The latter orms the basis or the

remuneration schemes, which are linked to key

value-added indicators. These are made up o

growth, market share and earnings components

as well as returns on capital.

Board o Management compensation

In , the Supervisory Board and the Personnel

Committee had concerned themselves in-depth

with a revision to the compensation system or

the Board o Management and adopted it. It was

applied or the rst time in and will be in

eect or all o the employment contracts o

the members o the Board o Management rom onwards. As a result o the amendment


30/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

to the German Stock Corporation Act, the ull

Supervisory Board plays a much bigger role in all

matters relating to the remuneration o the Board

o Management than in the past. The ull Super-

visory Board is now responsible or passing reso-

lutions on the individual components and related

sums o the compensation o the Board o Man-

agement in addition to determining the structure

o the compensation system and the key con-

tractual elements. Its new task also covers the

variable remuneration as well as the determina-

tion o perormance targets or the ollowing

nancial year and the establishment o the

degree to which the targets have been achievedor the preceding nancial year. Remuneration o

members o the Board o Management includes

a xed and a variable component and takes into

account the legally required compensation

components having a basis o assessment o

several years. The Board o Managements

compensation system is perormance-oriented.

This is reected in the ratio o the variable to the

xed component. I a very good perormance is

achieved, the variable component can account

or more than per cent o total emoluments.However, it should generally be in line with the

xed component. The variable elements success

parameters are the Jungheinrich Groups earn-

ings beore tax (EBT) and net sales growth as well

as the increase in market share or individual

product groups relating to Europe, the core

market. The perormance targets are reviewed

annually in accordance with the companys

strategic orientation and adjusted in line with the

multi-year goals. The variable component is paid

in instalments over three years, with the annual

instalments being determined based on thedegree to which the member has achieved his

or her goals and coming due once the nancial

statements o the preceding year are adopted.

Pensions or members o the Board o Manage-

ment are calculated based on the individuals

years o service with a lead-in period until the

member has a right o non-oreiture.

Supervisory Board compensation

A new compensation system became eective

or the Supervisory Board on January , .

The share o total remuneration accounted or

by the variable component was signicantly

reduced, the dividend was replaced by the

EBIT return on capital employed (ROCE) asthe orward-oriented basis o assessment,

and the signicance o the Finance and Audit

Committee was considered in the emoluments.

The yardstick aspired to in terms o appropri-

ateness was the level o the total compensation

o the Supervisory Board in the preceding years.

According to the new rules, in addition to the

reimbursement o out-o-pocket expenses, each

Supervisory Board member receives , in

xed annual compensation as well as variable

annual compensation, which depends on the

EBIT return on capital employed achieved by the

Jungheinrich Group. The threshold value o the

EBIT return on capital employed should be above

the weighted average cost o capital applicable

to the Jungheinrich Group and amounts to

per cent. Variable annual compensation

amounts to , or every ull percentage

point by which the achieved EBIT return on

capital employed exceeds the threshold value o

per cent. The targeted EBIT return on capital

employed is oriented towards the Jungheinrich

Groups medium-term strategic objectives andamounts to per cent. Thereore, variable


31/47

58 | 59 annual compensation amounts to , i

the achieved EBIT return on capital employed

reaches the target o per cent. I the achieved

EBIT return on capital employed exceeds the

target, variable annual compensation is increased

by an additional , or every ull percentage

point above the target, until the maximal variable

annual compensation o , is reached.

The Chairman receives three times and the

Deputy Chairman one-and-a-hal times the

aorementioned sums. Furthermore, members

o Supervisory Board committees receive an

additional xed annual compensation amounting

to , or every member o the PersonnelCommittee and o the Ad-hoc Committees o

the Supervisory Board. The chairmen o these

committees receive twice this remuneration.

Every member o the Finance and Audit Com-

mittee receives ,. The Chairman o the

Finance and Audit Committee receives two-

and-a-hal times this compensation.

Executive compensation

A new remuneration system was established

or executives in the year being reviewed. Its

variable components are generally based on

the key perormance indicators applicable to the

compensation o the Board o Management

and is intended to be introduced over the courseo .

Breakdown of purchasing volume

Total 1.38 (2011: 1.35) billion

Indirect material408 (430) million

Merchandise319 (304) million

Production material655 (612) million

Purchasing

In the Jungheinrich Group, procurement is

organized by product group. All sourcing needs

are structured according to a groupwide product

group management system that encompasses

main product groups. This is supplemented

by additional main product groups in whichpost-serial needs are bundled.

In , purchasing volume totalled . bil-

lion ater . billion in the previous year and

broke down into

production material and post-serial material,

merchandise and

indirect material.

The main product groups generating the highest

net sales in the year under review were batteries,

accounting or million (prior year: mil-

lion); outsourcing, accounting or million

(prior year: million); electric drive trains,

accounting or million (prior year: mil-

lion) and steel assemblies, accounting or

million (prior year: million).

Besides securing supplies or production

operations, ocus in the year being reviewed

was directed to establishing a uniorm, efcientpurchasing controlling system and restructuring

contract standards with suppliers.

Purchasing controlling

Purchasing controlling is a priority at Jungheinrich.

The centrepiece o purchasing controlling is the

purchasing cockpit in which all relevant key g-

ures are collected. It is based on SAP-BI (Business

Intelligence) and SAP-BW (Business Warehouse)

and builds a bridge rom strategy development

to the measurement o implemented measures

and results. The core element o reporting is the


32/47

Management

TheJun

gheinrichshare


Groupovervie

w

Conso


Furtherinformation

change in the cost o materials, a key gure that

reects the impact o earnings on the income

statement. The eects on prices o external ac-

tors such as changes in oreign exchange rates

and commodities are also measured and taken

into account when making purchasing-related

decisions.

Contract management

Jungheinrich redesigned its contract manage-

ment system in order to satisy the variety o

demands placed on modern contract manage-

ment in practice. This undertaking concentrated

on drawing up uniorm contractual standardsbased on modular contract documents as well as

on establishing a computerized contract creation

and archiving system. The redesign laid the

groundwork or increasing the number o master

agreements even more. Furthermore, comput-

erized contract creation and the simplication o

contract wording shorten processing times.

Analysis o the lithium-ion technology

procurement market

Jungheinrich is increasingly availing itsel o

lithium-ion technology to supplement the con-

ventional lead-acid traction batteries it uses. To

deend and increase this competitive advantage,

the purchasing organization thoroughly explored

the worldwide procurement market or lithium-ion

technologies and identifed numerous dealers and

manuacturers. This was ollowed by an analysisand evaluation o their technological expertise

and competitiveness. A master agreement has

already been signed with a renowned battery cell

producer with a view to securing supplies.

Inormation technology

The increasing standardization and convergence

o IT and business processes is one o the key

IT-related issues in the Jungheinrich Group. TheIT Division has been ocussing on it or years,

seizing opportunities as they arise in order to

develop marketable IT products the likes o

ISM Online.

IT organization

Jungheinrichs IT organization in Germany

employs more than people, whose main

tasks consist o sotware consulting and engi-

neering, the provision o data inrastructure, and

the operation o a state-o-the-art computing

centre. About additional IT personnel work

or Jungheinrich the world over, providing on-site

support at local sales and production sites.

A member-strong IT Board was denedas a strategic element o corporate governance

within the scope o the IT strategy ormulated in

. Staed with executives rom the Technol-

ogy, Finance, Sales and IT Divisions, this commit-

tee makes major decisions to keep the company

abreast o modern inormation technology. Eval-

uating IT projects and making decisions on their

implementation are the IT Boards main duties.

The goal is to leverage IT resources to maximize

value, while providing reliable support or core

processes. Pursuing this approach, the ollowing

key projects were completed in .


33/47

60 | 61 Major IT projects

ISM Online is the innovative eet management

system that was developed in cooperation with

the Sales Division and serves as an Internet and

system platorm. The system pools both com-

mercial (e.g. master, contract and billing data

rom the SAP system) as well as technical inor-

mation (e.g. deployment data) regarding material

handling equipment. This provides customers

with maximum transparency and saety in their

warehouses while enabling them to optimize the

costs o their orklit eet management.

By merging the SAP production systems, the

company is keeping pace with the trend towardsstandardizing systems. All o the Jungheinrich

Groups manuacturing and engineering locations

in Norderstedt, Moosburg, Landsberg and Lne-

burg as well as in Qingpu (China) and Houston,

Texas (USA) now work on a shared SAP platorm.

This allows or substantial synergies to be tapped

across sites.

In , the Groups web presence was re-

aligned, involving the addition o a wealth o new

content to expand it as a sales channel, among

other things. The completely new visual appear-ance and navigation provides users rapid access,

clear navigation structures and sensible network-

ing, enabling them to obtain the inormation

about Jungheinrich they desire, while oering

a way to get in touch with the department o

relevance to them depending on the inormation

or advice they are seeking.

All PC workstations the world over were

upgraded to Windows and Ofce . The

simultaneous commissioning o the SharePoint,

system platorm markedly simplied daily

operations and project work while creating new

ways o collaborating. This is a huge advantage

especially when it comes to serving customers

with global operations. The server technology

used in the computing centre was upgraded

with the newest blade servers in order to urther

optimize exibility, availability and costs while

urther expanding the virtualization o servers

and storage systems.

Documents

JH AR12 10 Group Management Report