Asset and financial position

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Jungheinrich AG is in charge of operations and strategic financial management for the Group and its subsidiaries. Financial resources and payment flows of domestic and foreign Group companies are optimized as regards interest and currency aspects via a cash and currency management system. Financing needs in the short, medium and long term are covered on international money and capital markets, exhausting all possible financing options.

In fiscal 2008, the Jungheinrich Group’s asset and financial positions were primarily characterized by the continued expansion of the Group’s business and the fact that its earnings trend was still good. By year-end, the balance sheet total had risen by €106 million to €2,179 million (prior year: €2,073 million).

In connection with the figures stated for the financial services business, it must be noted that, in accordance with IFRS, depending on the type of lease, long-term leasing and rental agreements concluded with customers and Jungheinrich companies directly or via leasing companies must be carried as fixed or current assets (as trucks for lease or as receivables from financial services). The refinancing of these long-term customer agreements is done with identical maturities and disclosed as liabilities from financial services. This extends the balance sheet. Furthermore, deferred sales stemming from sales proceeds already generated with an intermediate leasing company are stated under deferred income. Cash flows form customer contracts are largely congruent with refinancing instalments paid to lending institutions in this business.

The volume of the lease business’ contracts outstanding throughout Europe grew by 10 per cent to 92,900 forklift trucks (prior year: 84,400 units). This corresponds to an original value of €1,451 million (prior year: €1,332 million).

Asset structure of the Jungheinrich Group

in million €	Dec. 31, 2008	Dec. 31, 2007
Non-current assets	1,099	1,013
Fixed assets	713	666
Receivables from financial services	329	288
Other non-current assets	57	59
Current assets	1,080	1,060
Inventories	247	243
Trade accounts receivable	385	413
Receivables from financial services	131	114
Other current assets	55	39
Liquid assets and securities	262	251
Balance sheet total	2,179	2,073

Fixed assets increased by €47 million to €713 million (prior year: €666 million). The lion’s share of this rise was due to the expansion of the short-term hire and lease business as well as to investments in plants, with the construction of a factory for battery-powered low-platform trucks in Landsberg near Halle (Saxony-Anhalt) leading the way. Non-current and current receivables from financial services were up by a total of €58 million to €460 million as a result of business growth (prior year: €402 million). A significant portion of the rise was allocable to Jungheinrich’s financial services company in the United Kingdom once the operation had been taken over and put under Jungheinrich management. Inventories advanced marginally to €247 million (prior year: €243 million) owing to the economic downturn in the second half of 2008. Current trade accounts receivable declined by €28 million to €385 million (prior year: €413 million) as a result of the reduction in overdue accounts receivable at the end of the year. Cash and cash equivalents (liquid assets and securities) were up a marginal €11 million to €262 million (prior year: €251 million).

Capital structure of the Jungheinrich Group

in million €	Dec. 31, 2008	Dec. 31, 2007
Shareholders’ equity	625	554
Non-current liabilities	893	844
Provisions for pensions and similar obligations	140	164
Financial liabilities	150	144
Liabilities from financial services	465	390
Other long-term liabilities	138	146
Current liabilities	661	675
Other current provisions	108	111
Financial liabilities	135	146
Liabilities from financial services	178	151
Trade accounts payable	117	140
Other current liabilities	123	127
Balance sheet total	2,179	2,073

The development of shareholders’ equity, which rose by €71 million to €625 million (prior year: €554 million), was determined by the strong net income and currency effects as well as the dividend payment for fiscal 2007. The equity ratio improved to 29 per cent (prior year: 27 per cent) despite the higher balance sheet total. As of the balance sheet date, 122 per cent of intangible and tangible assets and equipment for short-term hire were covered by shareholders’ equity (prior year: 114 per cent). The Jungheinrich Group was capable of meeting its payment obligations at all times. This was all the more important against the backdrop of the increasingly severe international financial crisis: The Jungheinrich Group managed to secure financing beyond the extent to which this was required in the period under review. Excluding accounts payable for financial services, which were covered by accounts receivable from customers, the company had a low level of net indebtedness. As in the previous year, Jungheinrich’s indebtedness ratio, defined as the relation of net indebtedness to EBITDA, was less than 0.1 years (prior year: 0.1 years). Provisions for pensions dropped to €140 million (prior year: €164 million) owing to a one-time transfer to the UK pension fund. Other long and short-term provisions decreased to a total of €150 million (prior year: €156 million). The Group’s non-current and current financial liabilities were down a marginal €5 million to €285 million (prior year: €290 million). Including a total of €262 million in cash and cash equivalents and securities, net financial liabilities were reduced to €23 (prior year: €39 million). Trade accounts payable declined by €23 million to €117 million (prior year: €140 million) because the purchasing volume had already been reduced by year-end and obligations resulting from outstanding invoices decreased. Non-current and current liabilities from financial services climbed by €102 million to €643 million in line with business growth (prior year: €541 million).

The Jungheinrich Group’s complete balance sheet is included in Jungheinrich AG’s consolidated financial statements.

Statement of cash flows

in million €	2008	2007
Net income	77	82
Depreciation and amortization	170	136
Changes in trucks for short-term hire and trucks for lease (excl. depreciation) and receivables from financial services	– 221	– 218
Changes in liabilities from financing financial services and trucks for short-term hire	134	131
Other changes	– 28	– 24
Cash flows from operating activities	132	107
Cash flows from investing activities	– 138	– 60
Cash flows from financing activities	– 47	– 36
Net cash change in cash and cash equivalents	– 53	11

Cash flows from operating activities totalled €132 million—€25 million up on the €107 million posted in the previous year. This was predominantly due to the €34 million increase in depreciation and amortization, which also compensated for the slight decline in earnings. The small €3 million increase in funds tied down due to the change in the number of trucks on short-term hire and lease and in receivables from financial services was offset by an equally high inflow of funds resulting from the change in liabilities from financial services and the financing of trucks for short-term hire. At –€138 million, cash flows from investing activities were €78 million up on the previous year‘s level (–€60 million). €63 million thereof was due to investments of cash and cash equivalents in securities with final maturities in 2009 and the high level of capital expenditures by the new production plant in Landsberg (Saxony-Anhalt). Cash flows from financing activities amounted to –€47 million (prior year: –€36 million) and stemmed from the decrease in liabilities due to banks and financial loans as well as the dividend payment of €18.6 million (prior year: €17.3 million). Taking cash investments in securities into account, the net cash change in cash and cash equivalents was +€10 million (prior year: +€11 million).

The detailed statement of cash flows is included in the consolidated financial statements of the Jungheinrich AG.

The Jungheinrich Group‘s value added developed as follows:

in million €	2008	%	2007	%
Source
Total Group output 1	2,201	100.0	2,043	100.0
Cost of materials and equipment	1,274	57.9	1,171	57.3
Depreciation	170	7.7	136	6.7
Net value added	757	34.4	736	36.0
Usage
Employees	595	78.6	564	76.7
Public sector	45	5.9	57	7.7
Lenders	40	5.3	34	4.6
Shareholders	19	2.5	17	2.3
Group	58	7.7	64	8.7
Net value added	757	100.0	736	100.0
1) Including interest and similar income, other operating income and income from investments.

Capital expenditures
in million € (tangible and intangible assets without capitalized development costs)

The value added statement shows the work performed by Jungheinrich in the financial year being reviewed, minus all advance work and depreciation.

Added value created by the Jungheinrich Group in the fiscal year that just ended amounted to €757 million (prior year: €736 million). It was 3 per cent higher than in the preceding year. The usage shows that the lion’s share of value added (€595 million, or 79 per cent) was used for employees (prior year: €564 million, or 77 per cent). The public sector received €45 million, or 6 per cent (prior year: €57 million, or 8 per cent). Lenders partook of €40 million, or 5 per cent (prior year: €34 million, or 5 per cent). About €19 million was dedicated to shareholders (prior year: €17 million). €58 million, or 8 per cent, of value added remained within the Group for internal financing purposes (prior year: €64 million, or 9 per cent).