JH AR12 10 Group Management Report
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Transcript of JH AR12 10 Group Management Report
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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
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Management
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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
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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
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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.
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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.
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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
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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
Source: WITS (World Industrial Truck Statistics).
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.
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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
Source: WITS (World Industrial Truck Statistics).
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
Source: WITS (World Industrial Truck Statistics).
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
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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.
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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.
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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
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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
in million 2012 2011
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
in million 2012 2011
Cost o sales 1,558 1,482
Selling expenses 418 396
Research and development costs 44 37General administrative expenses 65 59
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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
in million 2012 2011
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
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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.
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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.
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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
in million 2012 2011
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).
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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
Receivables rom inancial services 174 163
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
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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
Liabilities rom inancial services 246 233
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
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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.
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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).
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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
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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.
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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
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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
in million 2012 2011
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
in million 2012 2011
Original value o new contracts 431 391
Original value o contracts on hand (12/31) 1,719 1,611
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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
Receivables rom inancial services 410 372
Other non-current assets 9 6Current assets 337 314
Inventories 24 23
Trade accounts receivable 66 58
Receivables rom inancial services 174 163
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
Liabilities rom inancial services 594 534
Other non-current liabilities 42 43
Current liabilities 387 358
Liabilities rom inancial services 246 233
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).
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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
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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
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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
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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
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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
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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 .
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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.