JUNGHEINRICH 4.0 JUNGHEINRICH Contents
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2017 Annual Report Report Annual DRIVE JUNGHEINRICH 4.0 Annual Report 2017 Contents 02 Foreword 04 Drive 30 To our shareholders 30 Report of the Supervisory Board 33 Corporate governance report 36 Members of the Supervisory Board 37 Members of the Board of Management 38 Jungheinrich share 43 Group management report 44 Group principles 52 Economic report 65 Legal disclosure 66 Non-financial aspects according to the CSR Guideline Implementation Act 66 Risk and opportunity report 73 Forecast report 75 Consolidated financial statements 76 Consolidated statement of income 77 Consolidated statement of comprehensive income (loss) 78 Consolidated balance sheet 80 Consolidated statement of cash flows 81 Consolidated statement of changes in shareholders’ equity 82 Notes to the consolidated financial statements 140 Additional information 140 Responsibility statement 141 Independent Auditor’s Report 148 Jungheinrich worldwide 150 2017 quarterly overview Cover At a glance Highlights in 2017 and our business model Five-year overview Financial calendar, Legal notice, Contact Largest truck order in the company’s history: In 4 years: > 1,000 + 37 % trucks employees – all lithium-ion battery-powered + 50 % net sales More than ¡Bienvenidos! 16,000 Global sales and service employees network expanded: in new companies in Colombia, Peru and 39 Ecuador countries Approximately Jungheinrich share hits all-time high of 120,000 €40.63 electric trucks – share price quadrupled in 5 years produced in 2017 Our business model ▲ Our integrated business model encompasses the development, production and sale of new trucks, the logistics systems and mail-order businesses, the short-term rental of new and used equipment, the reconditioning and sale of used forklifts and the maintenance, repair and spare parts operations. Combined with comprehensive financial services offers, it is our aim to serve our customers from a single source for the duration of a product’s life cycle. Short-term rental New trucks Highlights in 2017 and our business model Used equipment Logistics systems TS & SOL UC UTI OD ON PR S Customer E C R Digital solutions E M M S O E -C Consulting RV E IC ES Mail-order business Financial services After-sales services ▲ Company profile Founded in 1953, Jungheinrich ranks among the world’s leading solutions providers for the intralogistics sector. With a comprehensive portfolio of material handling equipment, logistics systems and services, Jungheinrich is able to offer customers tailored solutions for the challenges posed by Industry 4.0. The Group’s strategy is based on sustainable and profitable growth and therefore on increasing company value. Our goal is to become the number 1 intralogistics brand in all European markets and to be ranked among the top 3 global suppliers in the long term. Highlights in 2017 and our business model Key figures at a glance Jungheinrich Group 2017 2016 Change % Incoming orders units 123,500 109,200 13.1 million € 3,560 3,220 10.6 Orders on hand 31/12 million € 692 610 13.4 Production of material handling equipment units 120,100 106,300 13.0 Net sales million € 3,435 3,085 11.3 thereof Germany million € 851 753 13.0 thereof abroad million € 2,584 2,332 10.8 Foreign ratio % 75 76 – Earnings before interest and income taxes (EBIT) million € 259 235 10.2 EBIT return on sales (EBIT ROS) % 7.5 7.6 – EBIT return on capital employed (ROCE)1 % 17.3 17.8 – Earnings before taxes (EBT) million € 243 216 12.5 EBT return on sales (EBT ROS) % 7.1 7.0 – Net income million € 182 154 18.2 Capital expenditures2 million € 88 59 49.2 Research and development expenditures million € 77 62 24.2 Balance sheet total 31/12 million € 4,130 3,643 13.4 Shareholders’ equity 31/12 million € 1,244 1,114 11.7 thereof subscribed capital million € 102 102 – Employees 31/12 FTE3 16,248 15,010 8.2 thereof Germany FTE3 6,962 6,511 6.9 thereof abroad FTE3 9,286 8,499 9.3 Earnings per preferred share € 1.80 1.52 18.4 Dividend per share – ordinary share € 0.484 0.42 14.3 – preferred share € 0.504 0.44 13.6 1 EBIT as a percentage of interest-bearing capital employed (cut-off date) 2 Property, plant and equipment and intangible assets without capitalised development expenditures 3 FTE = full-time equivalents 4 Proposal COMPLEX TASKS. INTELLIGENT CONCEPTS. SUCCESSFUL TECHNOLOGY. Dr Volker Hues Hans-Georg Frey Dr Lars Brzoska Dr Klaus-Dieter Rosenbach Member of the Board Chairman of the Board Member of the Board Member of the Board of Management of Management of Management of Management Finance Labour Director Marketing & Sales Logistics Systems 3 Foreword Dear shareholders, Although the earth spins a little more slowly every year, as has been proven, it certainly doesn’t feel that way in our daily lives: everything seems to be moving faster. We are living in times of rapid development, driven by technological innovation. We can see it in the immediate availability of goods. Order today and you’ll often receive your delivery the same day. At Jungheinrich, we make this happen. With the right drive. That is why we have made this term, with all its various meanings, the topic of our 2017 annual report: drive, both a force from within and a force externally. We want to show you what drives us every day at Jungheinrich and how we move the world with our products and solutions. Our inner drive comes from over 16,000 employees around the globe. Our faith in their strength has become one of our principles, based on the “Go for it!“ attitude of our founder Dr Friedrich Jungheinrich. With this inner drive we recognised the trends and challenges of Intralogistics 4.0 early on – making us a driving force for our customer’s success around the world, with fully automated warehouse solutions, automated trucks and our unique energy expertise. In 2017, we secured the largest single order in Jungheinrich’s history – solely for trucks with lithium-ion technology. Our drive sets us apart from the competition. We have a clear target: we intend to generate annual net sales of €4 billion by 2020. Last year we took another big step towards our target with net sales of €3.4 billion and over 120,000 units manufactured. We produced more battery-powered vehicles than some automobile manufacturers. Over the last four years we have increased net sales by around 50 per cent and grown our workforce by 37 per cent. With our drive and growth strategy we will reach our targets. But nobody can achieve this sort of thing alone. We would like to thank our employees, the members of the Supervisory Board and in particular our shareholders from the Jungheinrich family. And, of course, you, our dear shareholders – thank you for your continued trust in Jungheinrich. This, too, drives us to keep working hard. Sincerely yours, Hans-Georg Frey Chairman of the Board of Management 4 DRIVE Drive is key to how we think and act – in all its facets, from technological to human. Without drive, nothing gets done. Global mega trends such as digitalisation, automation and interconnectivity shape and boost our business and the business of our customers. Jungheinrich is in the thick of it. Intralogistics 4.0 means everything is fluid, nothing stands still. Neither for us, nor for our customers. We rely on advanced technology to power our trucks and constantly increase product performance. We recognise and understand the dynamic forces that drive our customers, and develop intelligent solutions even for very complex tasks. Our drive – over 16,000 employees who bring our forward-looking “Jungheinrich 4.0“ agenda to life with their ability to solve problems, innovate and focus on the customer. Their motivation fuels them to promote Jungheinrich’s products and solutions every day all over the world. 5 4/7 growth strategy: As we strive to achieve our net sales goal of €4 billion by the 2020 financial year, we aim to grow by 7 per cent per annum. With net sales of €3.4 billion in 2017 we’re on track to hit our target. » Driven by a sense of innovation, Jungheinrich is one of the world’s leading solutions providers for the intralogistics sector.« Hans-Georg Frey, Chairman of the Board of Management DRIVE that can be felt on DRIVE the OUTSIDE that comes from the INSIDE – with innovative – thanks to our products and 16,000 employees intelligent solutions DRIVE performance 7 What will drive the future? The forward-looking topic of electric mobility is a reality we have been living with at Jungheinrich for 65 years. We are years ahead of the automotive industry when it comes to building and selling electric vehicles: there are more than one million Jungheinrich electric trucks in use around the world. We are a pioneer in lithium-ion technology in the intralogistics sector. With our years of expertise and custom-made comprehensive solutions we have established ourselves as the market leader for electric drive technology. 8 DRIVE performance Truck power – a holistic approach One of Jungheinrich’s traditional strengths is the development of electric drives. What makes us unique on the market is the interconnectivity of all of our components, from our trucks to our batteries to our charging stations – demonstrating our all-round energy expertise. The story of electric mobility at lead acid batteries. Our development Jungheinrich begins in 1953 with the skills and close proximity to our custom- construction of our first electric truck. ers along with a clear understanding of Sixty-five years later, more than 95 per their needs has made us the technology cent of the trucks we produce, basically and market leader.