DMG MORI : with stable business development in third quarter

• Order intake reaches € 2,060.6 million (-12%; previous year: € 2,340.1 million)
• Sales revenues increase by 6% to € 1,798.8 million (previous year: € 1,697.1 million)
• EBIT amounts to € 139.6 million (-13%; previous year: € 160.3 million)
• EBIT margin at 7.8% (previous year: 9.4%)
• Free cash flow amounts to € 24.5 million (-84%; previous year: € 152.0 million)

CEO Alfred Geißler: "At DMG MORI AG, the third quarter was characterized by EMO Hannover. We are satisfied - especially with the strong demand for our automation solutions. The intensive exchange with our customers, partners and interested parties gave us important impulses for the future and clearly showed: our technology solutions around the "Machining Transformation" are perfectly aligned with the needs of our customers for even faster, more efficient and more sustainable production."

Order intake

The overall economy and the global market for machine tools continued to be characterized by high raw material, material and energy costs, high inflation as well as rising interest rates. This continued to weigh on demand for capital goods, particularly in Europe. DMG MORI AG achieved an order intake of € 598.9 million in the third quarter (-10%; previous year: € 664.9 million). As of 30 September 2023, order intake totaled € 2,060.6 million (-12%; previous year: € 2,340.1 million). Domestic orders were € 683.5 million (-5%; previous year: € 722.5 million). International orders amounted to € 1,377.1 million (-15%; previous year: € 1,617.6 million). The share of international orders was 67% (previous year: 69%).

Sales revenues

Sales revenues increased by +6% to € 610.2 million in the third quarter (previous year: € 573.5 million). As of 30 September 2023, sales revenues grew by +6% to € 1,798.8 million (previous year: € 1,697.1 million). Domestic sales revenues rose disproportionately by +13% to € 640.7 million (previous year: € 567.7 million). At € 1,158.1 million, international sales revenues were slightly above the level of the previous year (€ 1,129.4 million). The export ratio was 64% (previous year: 67%).

Results of operations, financial position and net worth

The results of operations developed positively in the third quarter. EBITDA in the third quarter was € 82.6 million (previous year: € 75.9 million). EBIT increased to € 65.1 million (previous year: € 58.6 million). EBIT margin improved to 10.7% (previous year: 10.2%). EBT grew to € 67.2 million (previous year: € 56.9 million). EAT rose by +19% to € 47.6 million (previous year: € 40.1 million).

As of 30 September 2023, EBITDA amounted to € 191.6 million (previous year: € 216.3 million). EBIT was € 139.6 million (previous year: 160.3 million). The EBIT margin reached 7.8% (previous year: 9.4%). EBT totaled € 145.8 million (previous year: € 158.7 million). The group reported EAT of € 103.4 million as of 30 September 2023 (previous year: € 111.9 million).

The financial position developed as follows: Free cash flow in the third quarter was € -10.4 million (previous year: € 25.7 million). As of 30 September 2023, free cash flow amounted to € 24.5 million (-84%; previous year: € 152.0 million).

Employees

As of 30 September 2023, the group had 7,464 employees, thereof 291 trainees (31 Dec. 2022: 7,266). Personnel expenses amounted to € 468.1 million (previous year: € 425.4 million). The personnel ratio was 24.8% (previous year: 24.2%).

Research and development

DMG MORI AG keeps the budget for research and development stable at a high level. In 2023, together with our group parent company DMG MORI COMPANY LIMITED, we present 39innovations - including 15 world premieres, 2 automation solutions, 7 digital innovations, 4 technology cycles and 5 DMG MORI Components as well as 6 innovations for even more sustainability.

At EMO Hannover (Sept. 18-23), DMG MORI showed innovations for all four pillars of the "Machining Transformation" - Process Integration, Automation, Digital Transformation (DX) and Green Transformation (GX) - as well as four world premieres. One example is the newly introduced CTX beta 450 TC. This high-tech turn & mill machine combines 6-sided complete machining with 5-axis simultaneous milling and, if required, integrates additional processes such as grinding, gear cutting and measuring.

Forecast 2023

The declining momentum in world trade, continuing geopolitical uncertainties and the ongoing high inflation rates as well as rising interest rates have impacted the economic outlook in the global machine tool market and will continue to shape demand for capital goods in the coming months. According to the October forecast of VDW and the British economic research institute Oxford Economics, world machine tool consumption in 2023 is now expected to decline by as much as -3.5% to € 77.7 billion (April forecast: +2.6%) - and this without taking into account price increases and high inflation.

With its "Machining Transformation" strategy, DMG MORI offers technology solutions for some current challenges, such as the shortage of skilled workers, high energy and material costs, or the efficient use of capacities. We continue to drive holistic Process Integration, Automation, Digital Transformation (DX) as well as Green Transformation (GX) to remain the innovation leader and respond quickly as well as agilely to global changes.

Due to the stable business development and positive impulses at EMO Hannover, we remain confident for the further course of the year. DMG MORI AG again confirms the forecasts for the full year: Order intake is expected to reach around € 2.45 billion. We estimate sales revenues of around € 2.35 billion. We assume EBIT of around € 170 million. Free cash flow is to be around € 80 million. Our continued high order backlog already provides a stable basis for the coming financial year.

DMG MORI AKTIENGESELLSCHAFT
The Executive Board