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"Focus on profitable growth"

Martin Schrüfer,

Jungheinrich presents Strategy 2025+

Jungheinrich will focus on increasing profitability, efficiency and sustainability in the coming years. The company announced this on the occasion of the presentation of its new Strategy 2025+ in Hamburg. Having already achieved its strategic growth target for 2020 a year earlier than planned, Jungheinrich intends to use its new strategy to create even greater and sustainable value for its stakeholders - customers, employees, shareholders, business partners and society - in the coming years.

© Jungheinrich

In terms of technology, Jungheinrich is focusing on the innovation topics of automation, digitalization and forward-looking energy systems. As part of the company's digital transformation, which has already been initiated, the implementation of customer-centric and more efficient processes is being driven forward. The Group is focusing in particular on expanding its presence in the European, Chinese and North American markets. All activities will be based on a holistic understanding of sustainability that takes equal account of economic, ecological and social aspects.

The Group Strategy 2025+ is divided into 12 sub-strategies, which in turn are implemented in around 100 specific initiatives within the company. All Group divisions are involved in the implementation with clearly defined roles and responsibilities. The strategy is to be dynamically updated beyond 2025.

"We want to be the first choice for our customers in the long term and offer them added value through pioneering solutions and technologies. At the same time, we want to help shape economic, ecological and social developments as a Group and thus create sustainable value for all our stakeholders. To this end, we are making Jungheinrich more profitable, more efficient and more sustainable," explains Dr. Lars Brzoska, CEO of Jungheinrich AG. "With Strategy 2025+, we have fully charged our batteries in every respect, bundled ideas and strengths and set the right course for a 'yellow future' in intralogistics."

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Based on the 2025+ strategy, Jungheinrich is aiming for sales of over 5 billion euros in the 2025 financial year. Jungheinrich has earmarked a mid to high triple-digit million euro amount for targeted acquisitions and strategic partnerships. Organic sales are expected to exceed 4.6 billion euros, based on annual growth of at least 5 per cent. The EBIT ROS is to be improved to over 8 per cent and the EBT ROS to over 7.5 per cent. EBT per employee should reach more than 17,500 euros by 2025. The aim is to increase cash flow from operating activities (operating cash flow) to between 8% and 10%. The share of non-European sales is to be increased to over 20 percent.

Dr. Volker Hues, Chief Financial Officer: "With our Strategy 2025+, we are laying the foundation for the long-term success of our Group. Jungheinrich already has a very solid balance sheet and a high liquidity reserve. With our focus on returns and operating cash flow, we are securing our financial leeway. This enables us to implement the necessary strategic measures and ensure the Group's financial independence at all times, even in difficult economic times. At the same time, we are adhering to our policy of continuous dividend payments."

Further information on the 2025+ strategy

In its 2025+ strategy, Jungheinrich has anchored the automation of intralogistics as a key future and growth area for the Group. Jungheinrich expects annual market growth of 7 to 10 per cent in this area. Against this backdrop, the company is pushing ahead with the expansion of its automation portfolio, especially in the fields of automated guided vehicles, automated warehouses, software and robotics. The aim is to open up new markets and achieve an even stronger market position, particularly in e-commerce. In order to strengthen its own market position, the Group is intensifying its cooperation with partners from various sectors and seeking targeted acquisitions. At the same time, the Group is intensifying its activities in the field of digitalization and is pushing ahead with the development of new product and business models in this area. Priority is being given to the consistent further development of the "digital warehouse" with the help of artificial intelligence and big data, among other things. "Intralogistics is a pioneer in automation and digitalization and thus sets the pace for the profound change that industry, transport and trade are currently undergoing. Jungheinrich has long been a driver of innovation in this area. From this position, we will consistently exploit the growth potential in this segment," explains Brzoska. Jungheinrich is expanding its range of digital products in the field of warehouse, fleet and battery management systems and plans to expand its portfolio of safety and assistance systems.

Jungheinrich is already the number one in terms of energy efficiency in warehouses and occupies a leading position within the industry in the development of innovative energy systems. More than 1,000,000 Jungheinrich electric trucks are currently in use worldwide. No other company in intralogistics relies so consistently on the lithium-ion battery. Jungheinrich intends to further expand its leading industry position in this technology. The company's goal is to achieve a lithium-ion equipment quota of more than 70 percent of the trucks it sells by 2025. To this end, further truck models with fully integrated lithium-ion technology will be launched on the market in the coming years. Jungheinrich also sees great growth potential in the Powertrain Solutions division. Here, the company is also making its expertise in the field of energy systems available to other manufacturers, including those from the construction and agricultural machinery industries, thus driving forward electromobility across all sectors. Brzoska comments: "Driven by our decades of experience as a supplier of electric vehicles, we are moving the future - even beyond intralogistics. Our customers and the environment benefit equally from our expertise in efficient and climate-friendly lithium-ion technology."

In order to expand its global presence, Jungheinrich will focus in particular on its activities in the European, Chinese and North American markets. Together, these account for around 80 per cent of the global intralogistics market. The company plans to increase its share of sales outside Europe to over 20 per cent. Jungheinrich has earmarked an amount in the mid to high three-digit million euro range for targeted acquisitions and strategic partnerships in its Strategy 2025+. "In the future, strategic partnerships and acquisitions will be an important lever for us to achieve our goals. We are planning a considerable investment volume for this and want to focus primarily on growth markets," says Dr. Lars Brzoska.

Jungheinrich is also accelerating its own digital transformation with its 2025+ strategy. The aim is to consistently increase efficiency within the Group. All of the company's processes and structures are being reviewed and optimized in this context in order to increase Jungheinrich's profitability and effectiveness. To this end, the ongoing DEEP (Digital End-to-End Processes) and N-Ex-T (Network Excellence Technology) projects in particular are being driven forward. "Efficient processes help to save resources and increase competitiveness at the same time. By doing the right things better, we increase our profitability in the long term," says Brzoska.

In its Strategy 2025+, Jungheinrich takes a holistic view of sustainability in its economic, ecological and social dimensions. Brzoska explains: "For Jungheinrich as a family-owned company, assuming corporate responsibility means combining social and ecological aspects with profitable growth. This self-image drives us to shape the future of our industry." Jungheinrich is already one of the most sustainable two percent of companies in the mechanical engineering industry. With the 2025+ strategy, the topic of sustainability is now being anchored even more firmly in the company and given ambitious targets. In this context, Jungheinrich has joined the "50 Sustainability & Climate Leaders" initiative to lead the way in the fight against climate change together with other international companies. In this context, Jungheinrich has set itself the goal of achievingCO2 neutrality. By introducing systematic sustainability management along the entire supply chain, the Group is defining clear responsibilities and creating transparency for greater sustainability. Jungheinrich also wants to position itself as an employer of choice in the coming years. The proportion of women in management positions is to be further increased significantly.

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