Successful business development under difficult market conditions in the first half 2022

• Order intake rises by +34% to all-time high of € 1,675.2 million (previous year: € 1,248.7 million)

• Sales revenues increases to € 1,123.6 million (+20%; previous year: € 933.5 million)

• EBIT improves by +141% to € 101.6 million (previous year: € 42.2 million)

• EBIT margin doubles to 9.1% (previous year: 4.5%)

• Free cash flow rises to all-time high of € 126.3 million (+12%; previous year: € 113.2 million)

Chairman of the Executive Board Christian Thönes: “DMG MORI benefits from its consistent realization of the strategic fit of automation, digitization and sustainability. After a strong first quarter 2022, we achieved new record figures for order intake and free cash flow in the first half-year – and this against the background of high volatility and a more difficult market environment. Based on this successful business development, we are raising our forecast for 2022 here.”

Order intake // Orders reach new record levels in second quarter and half-year

The global market for machine tools continued to be impacted by geopolitical factors. Global supply and material shortages, rising prices for raw materials, transport, logistics and energy as well as high inflation, the ongoing war in Ukraine and the lockdown in parts of China affected demand for capital goods. In this challenging market environment, DMG MORI achieved order intake of € 813.6 million in the second quarter and thus recorded the best second quarter ever in the company’s history (+23%; previous year: € 658.9 million).

In the first half year, DMG MORI also reached a new record for order intake: orders increased by +34% to € 1,675.2 million (previous year: € 1,248.7 million). As a result, order intake in the first six months not only exceeded the pre-corona level 2019 (+19%; € 1,412.3 million) but was even +6% above the record figure of 2018 (€ 1,577.1 million). New machine business in particular performed well with +36% and reflected the increased demand for our holistic and sustainable automation and digitization solutions. Domestic orders rose to € 500.1 million (+31%; previous year: € 382.4 million). International orders increased to € 1,175.1 million (+36%; previous year: € 866.3 million). The share of international orders was 70% (previous year: 69%).

Sales revenues // Continued difficult materials and logistics situation

In the second quarter, sales revenues rose by +10% to € 562.6 million (previous year: € 511.9 million). In the first half year, sales revenues grew by +20% to € 1,123.6 million despite the continued difficult materials and logistics situation, which was further intensified by the lockdown in parts of China (previous year: € 933.5 million). The increase was due to the good new machine as well as the service and spare parts business. DMG MORI has so far been able to avoid serious production interruptions thanks to a stable, long-standing network with partners and suppliers. Domestic sales were € 365.9 million (previous year: € 299.4 million). International sales amounted to € 757.7 million (previous year: € 634.1 million). The export share was 67% (previous year: 68%).

Results of operations, financial position and net worth // EBIT margin and FCF at all-time high

The results of operations improved significantly: EBITDA rose to € 67.4 million in the second quarter (previous year: € 46.5 million). EBIT increased by +50% to € 45.7 million (previous year: € 30.4 million). The EBIT margin improved to 8.1% (previous year: 5.9%). EBT amounted to € 45.7 million (previous year: € 29.1 million). EAT grew to € 32.2 million (previous year: € 20.3 million).

In the first half year, EBITDA rose to € 140.4 million (previous year: € 74.2 million). EBIT improved by +141% to € 101.6 million (previous year: € 42.2 million). The EBIT margin doubled to 9.1% (previous year: 4.5%). EBT increased to € 101.8 million (previous year: € 40.6 million). The group reported EAT of € 71.8 million as of 30 June 2022 (previous year: € 28.3 million).

The financial position was also stable at a high level: free cash flow amounted to € 70.9 million in the second quarter (-4%; previous year: € 73.6 million). In the first half year, free cash flow rose to a new all-time high of € 126.3 million (+12%; previous year: € 113.2 million).

Employees // Strong team performance and high motivation

DMG MORI’s success is an extraordinary team effort by our highly motivated employees, who work for our customers every day with passion and highly qualified know-how. As of 30 June 2022, the group had 6,726 employees, including 166 trainees (31 Dec. 2021: 6,821). The number of employees therefore remained nearly unchanged compared to year-end 2021. Personnel expenses amounted to € 288.3 million (previous year: € 262.3 million). The personnel ratio improved to 25.1% (previous year: 27.2%).

Research and development // Focus on automation, digitization and sustainability

DMG MORI offers holistic, integrated solutions – always in the focus: our customers. The high demand for our innovative, sustainable high-tech products as well as holistic automation and digitization solutions was also reflected at our traditional Open House in Pfronten. This industry highlight took place for the first time over two weeks – live and digital. DMG MORI presented innovative digital solutions for the future of manufacturing, our unique DMG MORI gear cutting solutions as well as 2 world premieres and 14 automation solutions, including 4 innovations: Robo2Go Max, MATRIS Light, PH Cell 2000 and PH 50. Automation is the key to more efficiency, more productivity, even faster amortization – and thus to greater competitiveness of our customers.

Forecast 2022 // Outlook for order intake and free cash flow raised

2022 continues to be marked by high volatility and uncertainty – impacted by the war in Ukraine, disrupted supply chains worldwide, the shortage of materials, high inflation as well as rising prices for raw materials, transport, logistics and energy. In addition, there are rising interest rates, which affect the financing of capital goods as well as a possible gas embargo with unforeseeable economic consequences for the industry.
DMG MORI benefits from its consistent realization of the strategic fit of automation, digitization and sustainability. We are strengthening our global presence with a new production plant in China. Holistic automation and integrated digitization solutions extend our core business with machine tools. We are further expanding the digital subscription business model PAYZR for Software-as-a-Service and Equipment-as-a-Service. With our global footprint and the extensive service offerings, we offer everything integrated, consistent and sustainable from a single source – worldwide! Progress through sustainable technology – this is what DMG MORI stands for.
Due to the successful business development, DMG MORI raises the order intake and free cash flow forecasts for the financial year 2022: We are now planning order intake of around € 2.7 billion (previously around € 2.5 billion). Sales revenues are further expected to be around € 2.3 billion. EBIT is to be unchanged at around € 180 million. Free cash flow is estimated at around € 150 million (previously around € 130 million). 2022 nevertheless continues to be challenging. Our forecasts remain subject to the provision that the global market and economic conditions do not change significantly.

DMG MORI AKTIENGESELLSCHAFT

The Executive Board

DMG MORI AKTIENGESELLSCHAFT is a worldwide leading manufacturer of machine tools with sales revenues of over € 2.0 billion and more than 6,800 employees. In the “Global One Company”, around 12,000 employees are in direct contact with over 100,000 customers from 55 industries. DMG MORI is present in 87 countries worldwide – with 16 production plants, 111 sales and service locations – and is actively advancing the future fields of automation, digitization and sustainability.

High-precision machine tools and technologies from DMG MORI are at the beginning of global value chains. Integrated automation and end-to-end digitization solutions extend our core business with turning and milling machines, Advanced Technologies and Additive Manufacturing. With modular products, we enable an easy, fast, scalable entry into digital manufacturing as well as end-to-end digitization. With PAYZR – PAY with Zero Risk – for Equipment-as-a-Service and Software-as-a-Service, DMG MORI is also implementing a completely digital subscription business model. Customers benefit from fast innovation cycles without risk – with maximum planning security, cost and price transparency and full flexibility. Our mission: Empower our customers in manufacturing and digitization!

Our technology excellence is bundled within the main sectors of Aerospace, Automotive, Die & Mold as well as Medical and Semiconductor. With the DMG MORI Qualified Products (DMQP) partner program, we offer perfectly matched peripheral products from a single source. Our customer-oriented services cover the entire life cycle of a machine tool – including training, repair, maintenance and spare parts service. With our online customer portal my DMG MORI, we enable digital, direct access to our service experts and digitize all service processes.
Sustainability at DMG MORI is globally and holistically oriented. Both our “Company Carbon Footprint” and “Product Carbon Footprint” are climate-neutral already today – and that along the entire supply up to the customer. Our vision: Be the most attractive global machine tool manufacturer with digitized and sustainable products!