DMG MORI : with good result in the first half year

About this update from Dmg Mori Aktiengesellschaft

Order intake amounts to € 1,228.6 million (-16 %; previous year: € 1,461.7 million) Sales revenues reach € 1,104.2 million (-7 %; previous year: € 1,188.6 million) EBIT at € 105.6 million well above the previous year's good level (€ 74.0 million) EBIT margin increases to 9.6 % (previous year: 6.2 %) Free cash flow amounts to € -47.4 million (previous year: € 34.9 million) CEO Alfred Geißler: "DMG MORI AG performed well in the first half of 2024 in a persistently difficult market environment. In particular we achieved a strong result in the second quarter - this shows that our efficiency measures are working! We are continuing to work hard to position ourselves even more strongly technologically and will also be presenting new developments at the upcoming AMB with a focus on process integration, automation and sustainability as well as innovative digital tools." Order intake The ongoing geopolitical uncertainties, restrictive monetary policy and the global increase in industrial and trade policy interventions weighed on the economy - particularly in Europe - and led to a decline in demand for capital goods. In this still challenging market environment, DMG MORI AG achieved an order intake of € 570.4 million in the second quarter (-15 %; previous year: € 674.3 million). In the first half of the year, orders amounted to € 1,228.6 million (-16 %; previous year: € 1,461.7 million). Domestic orders were € 385.8 million (-15 %; previous year: € 455.9 million). International orders totaled € 842.8 million (-16 %; previous year: € 1,005.8 million). As in the previous year, the export share was 69 %. Sales revenues Sales revenues in the second quarter amounted to € 552.7 million (-8 %; previous year: € 602.4 million). In the first half of the year, sales revenues were € 1,104.2 million (-7 %; previous year: € 1,188.6 million). Domestic sales increased by +8 % to € 461.0 million (previous year: € 426.6 million). International sales fell by -16 % to € 643.2 million (previous year: € 762.0 million). The export ratio was 58 % (previous year: 64 %). Results of operations, financial position and net worth Results of operations developed very positively in the second quarter, demonstrating the effective­ness of the systematic implementation of our efficiency measures: EBITDA rose to € 76.3 million (previous year: € 45.5 million). At € 58.0 million, we were able to almost double EBIT (+95 %; previous year: € 29.8 million). The EBIT margin improved to 10.5 % (previous year: 4.9 %). EBT rose to € 63.0 million (previous year: € 32.8 million). EAT reached € 44.7 million (previous year: € 23.8 million). EBITDA amounted to € 142.3 million in the first half year of 2024 (previous year: € 107.5 million). EBIT rose to € 105.6 million (previous year: € 74.0 million). The EBIT margin improved to 9.6 % (previous year: 6.2 %). EBT increased to € 112.8 million (previous year: € 78.0 million). Income taxes amounted to € 32.8 million (previous year: € 22.9 million). This resulted in EAT from continuing operations of € 80.0 million (previous year: € 55.2 million). By a decree published on 19 February 2024, the Russian Federation has brought our shareholding in Ulyanovsk Machine Tools ooo, Ulyanovsk (Russia), under state control. The DMG MORI AG Group has thus lost the ability to control and influence the company in Ulyanovsk. The loss of control over Ulyanovsk Machine Tools ooo led to the derecognition of this company from the consolidated financial statements of DMG MORI AG. The disposal of our production company in Russia and the subsequent Executive Board's decision to discontinue our "ECOLINE" product line, resulted in EAT from discontinued operations of € -91.9 million (previous year: € 0.6 million). The DMG MORI AG group's EAT amounted to € -11.9 million (previous year: € 55.8 million). Overall, the financial position developed in line with our expectations. In the first half of the year, free cash flow amounted to € -47.4 million (previous year: € 34.9 million), mainly due to the reduction in advance payments received. In the second quarter, free cash flow was € -52.4 million (previous year: € 1.7 million). Employees As of 30 June 2024, the Group had 7,427 employees, including 218 trainees (31.12.2023: 7,515). Personnel expenses amounted to € 314.8 million (previous year: € 320.4 million). The personnel ratio was 28.4 % due to the lower total operating performance (previous year: 25.2 %). Research and development We are consistently aligning our entire portfolio with our aspiration to be the holistic solution provider for our customers in the manufacturing environment. In 2024, together with the group parent company DMG MORI COMPANY LIMITED, we will present 27 innovations- including 13 world premieres, two automation solutions, four digital innovations, one new technology cycle, four DMG MORI Components and three innovations for even greater sustainability. At the traditional open house exhibition in Pfronten at the beginning of the year, DMG MORI presented the latest developments and innovations. A particular highlight in machine-related digitization was the presentation of the new ERGOline X human-machine interface with CELOS X. CELOS X is a digital, data-based ecosystem for the integrated management, planning, control, operation, monitoring and interoperation of machines, automation solutions and processes in the industrial manufacturing environment. Forecast 2024 remains challenging. Geopolitical uncertainties, in particular the ongoing war in Ukraine and international trade conflicts, persistent high inflation rates and high interest rates continue to weigh on the global economy. A recovery in the subdued demand for capital goods and the machine tool market is not in sight for the time being. DMG MORI AG performed well in the first half of 2024 in what remains a difficult market environment, meaning that we generally again confirm our forecasts for the year as a whole. Order intake is to remain unchanged at around € 2.3 billion. Sales revenues are still expected to amount to around € 2.4 billion. We continue to forecast EBIT of around € 200 million. Free cash flow is expected to remain unchanged at around € 150 million. The forecasts do not take into account the consequences of discontinued operations or possible compensation from the investment guarantee, the amount of which cannot currently be estimated. We expect positive stimulus from AMB in Stuttgart (10-14 Sept. 2024). At this important trade fair, we will bring the diverse possibilities of Machining Transformation (MX) to life and present six world premieres as well as innovations for Digital Transformation (DX) and Green Transformation (GX). DMG MORI AKTIENGESELLSCHAFT The Executive Board

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