Jungheinrich anticipates that the world material handling equipment market will grow slightly in terms of volume in 2016. Market volume in Western and Eastern Europe is currently expected to display positive development. Opportunities may arise in Russia where initial signs of a recovery are becoming apparent. Jungheinrich expects the Asian markets to expand marginally, driven by the warehousing equipment and battery-powered counterbalanced truck segments. It remains to be seen whether the shrinking market for IC engine-powered counterbalanced trucks will recover in Asia. Jungheinrich anticipates that the North American market will record stable development, although a slight contraction cannot be ruled out, in view of the surprising cool-down in the first two months of the year.

At 167 thousand forklift trucks, the global material handling equipment market was slightly bigger at the end of February 2016 than by the same point in time last year (164 thousand trucks). During the same period, market volume in Europe, Jungheinrich’s main sales market, rose by 14 per cent to 65 thousand forklifts (prior year: 57 thousand trucks).

Jungheinrich displayed very positive development in this environment, maintaining its course for growth. In the first two months of the new fiscal year, the value of incoming orders totaled 469 million euros and was thus 12 per cent higher than the 418 million euros recorded a year earlier. Incoming orders in terms of units climbed by 6 per cent in the first two months to 16.8 thousand forklifts (prior year: 15.8 thousand trucks). Amounting to 530 million euros, orders on hand in new truck business as of the end of February 2016 exceeded the 477 million euros achieved by December 31, 2015 by 11 per cent. In the first two months of 2016, the Jungheinrich Group’s net sales totaled 432 million euros (prior year:

391 million euros), surpassing the year-earlier figure by 10 per cent. During the same period, production volume advanced by 10 per cent to 15.1 thousand forklifts (prior year: 13.7 thousand trucks).

Fiscal 2015
The Jungheinrich Group at a Glance

Growth Strategy Implemented Resolutely

In the financial year that just came to a close, the Jungheinrich Group continued to pursue its growth strategy with resolve. The strategy’s success is evidenced by the double-digit growth posted by incoming orders, net sales, EBIT and EBT. The market share has increased, both in the core market Europe and worldwide.

Major steps were taken successfully in 2015. Jungheinrich strategically expanded business in its growth field of logistics systems by acquiring the MIAS Group, a stacker crane specialist, and continued its evolution towards becoming a system provider. In 2015, net sales in the ‘Logistics Systems’ division were boosted by 12 per cent to 381 million euros. Furthermore, the global direct sales and service network was expanded. Now, the Jungheinrich Group also has a presence through proprietary companies in Australia, Chile (establishment in early 2016), Malaysia, Romania and South Africa. In addition, the joint venture with Heli in the Chinese rental business will strengthen the company’s position on the world’s single-largest market.

Market

Counting 1.10 million trucks in 2015, the world material handling equipment market was essentially flat compared to 2014 (1.09 million trucks). Europe— Jungheinrich’s main sales market—recorded a rise of 8 per cent to 373 thousand forklifts (prior year: 345 thousand trucks). Whereas demand was up 11 per cent in Western Europe, market volume in Eastern Europe decreased by 7 per cent, owing to the significant contraction of the Russian market, which shrank by 39 per cent. Excluding Russia, the Eastern European market posted 10 per cent growth. Encompassing 414 thousand trucks, the Asian market was 7 per cent smaller than in the preceding year (444 thousand forklifts). The drop was primarily due to declining demand for IC engine-powered counterbalanced trucks in China. Jungheinrich’s business was not affected by this development since it focuses its operations in China on the sale of warehousing equipment. Asia’s market, excluding China, grew 3 per cent. Demand in North America advanced 7 per cent to 235 thousand forklifts (prior year: 219 thousand trucks).

Incoming orders and orders on hand

At 97.1 thousand forklift trucks, unit-based incoming orders in new truck business, which include orders for both new forklifts and trucks for short-term hire, were up 13 per cent compared to the figure recorded in the previous year (85.6 thousand trucks). The value of the Jungheinrich Group’s incoming orders, encompassing all business fields, amounted to 2,817 million euros—up 11 per cent on the year- earlier figure (2,535 million euros). This includes a very large order, valued in mid- range, double-digit million euro territory, in the ‘Logistics Systems’ division. As of December 31, 2015, the value of orders on hand from new truck business totaled 477 million euros (prior year: 379 million euros). The order range was thus nearly four months.

Production

Amounting to 91.2 thousand forklifts, unit production in 2015 exceeded the 83.5 thousand trucks recorded in the preceding year by 9 per cent. Production thus surpassed the 90 thousand-unit mark for the first time.

Net Sales

In the 2015 financial year, consolidated net sales were up 10 per cent to
2,754 million euros (prior year: 2,498 million euros). All business areas contributed to the uptick in net sales. In particular new truck business expanded above average in fiscal 2015, advancing by 12 per cent to 1,539 million euros from 1,375 million euros in 2014. Net sales generated in Germany increased by 7 per cent to 701 million euros (prior year: 655 million euros). Foreign net sales climbed by 11 per cent to 2,053 million euros (prior year: 1,843 million euros). The foreign ratio thus rose to 75 per cent (prior year: 74 per cent). The portion of consolidated net sales accounted for by countries outside Europe increased to 11 per cent (prior year: 9 per cent).

Earnings

Driven by the high level of unit production and the sustained positive development across all business fields, earnings before interest and taxes (EBIT) rose by 10 per cent to 213 million euros (prior year: 193 million euros). As in the previous year, the EBIT return on sales (EBIT ROS) was 7.7 per cent. In this context, account should be taken of the fact that there was a special item in the amount of

6.7 million euros in the preceding year, which resulted from the adjustment to the Dutch pension plan.

Earnings before taxes (EBT) totaled 198 million euros—13 per cent up on the previous year (175 million euros). The EBT return on sales (EBT ROS) was 7.2 per cent (prior year: 7.0 per cent).

Dividend

In doing justice to this development, the Board of Management and the Supervisory Board of Jungheinrich AG will propose to the Annual General Meeting on May 24, 2016 that a much higher dividend be paid than last year: €1.13 per ordinary share (prior year: €0.98) and €1.19 per preferred share (prior year: €1.04). This corresponds to an increase of the dividend on preferred stock of
14 per cent.

Research and Development

In 2015, Jungheinrich made further inroads in research and development activities designed to enhance its technological expertise and set itself apart from the competition. Research and development expenditures, including those of third parties, amounted to 55 million euros, reaching another all-time high (prior year: 50 million euros).

Capital Expenditures

In the financial year that just ended, capital expenditures on tangible and intangible assets totaled 87 million euros (prior year: 84 million euros). Focal points included the modernization of production at the Moosburg plant, the expansion of the Dresden Used Equipment Centre as well as the construction of a training center at the Norderstedt factory and of the new corporate headquarters in Hamburg.

Employees

As of December 31, 2015, the Group employed 13,962 people (prior year: 12,549), 7,884 of whom worked abroad (prior year: 6,911) and 6,078 of whom worked in Germany (prior year: 5,638). The permanent workforce thus rose by
11 per cent, or 1,413 staff members, in the financial year that just came to a close. A total of 590 employees were added as companies were acquired or established. As of December 31, 2015, Jungheinrich had 2,709 individuals on its payroll in the Hamburg metropolitan region (prior year: 2,550 employees) of which 1,224 were working at the Norderstedt site (prior year: 1,130 employees). Headcount at the Moosburg location (including the Degernpoint factory) increased to 1,164 people (prior year: 1,123 employees).

Jungheinrich ranks among the world’s leading companies in the material handling equipment, warehousing and material flow engineering sectors. The company is an intralogistics service and solution provider with manufacturing operations, which offers its customers a comprehensive range of forklift trucks, logistics systems, services and advice. The Jungheinrich share is listed in the MDAX.