DMG MORI increases order intake by +34%

Order intake rises significantly to € 589.8 million (previous year’s quarter: € 440.2 million)
Sales revenues reach € 421.6 million (previous year’s quarter: € 458.0 million)
EBIT amounts to € 11.8 million (previous year’s quarter: € 25.3 million)
EBIT margin is 2.8% (previous year’s quarter: 5.5%)
Free cash flow clearly positive at € 39.6 million (previous year’s quarter: € -36.7 million)

Bielefeld // DMG MORI AKTIENGESELLSCHAFT recorded a dynamic course of business in the 1st quarter 2021 – in particular due to the favorable development in order intake. At € 589.8 million (+34%), DMG MORI recorded significantly more orders than in the comparable quarter of the previous year. Sales revenues in the first three months reached € 421.6 million. EBIT amounted to € 11.8 million under continued difficult conditions. EBIT margin was 2.8%. Free cash flow improved significantly and was already clearly positive in the 1st quarter at € 39.6 million (+208%).

Chairman of the Executive Board Christian Thönes: “We started the year well and look forward with confidence to the further course of business. We continue to innovate and invest and are focusing on our strategic fit of automation, digitization and sustainability. It is already clear that our strategy is paying off. For 2021, we have a lot of tailwind and are therefore raising our forecast significantly.”

Order intake // Demand increases worldwide in all industries

The global machine tool market showed signs of recovery in the 1st quarter 2021. At DMG MORI, orders increased favorably in almost all industries. Order intake rose to € 589.8 million and was thus +34% above the previous year’s quarter (€ 440.2 million).
DMG MORI also recorded strong product interest in holistic automation and end-to-end digitization solutions. Domestic orders increased to € 174.6 million (previous year: € 143.3 million). International orders rose to € 415.2 million (previous year: € 296.9 million). The share of international orders was 70% (previous year: 67%).

Sales revenues // Service business influenced by continued travel restrictions

Sales revenues in the first three months reached € 421.6 million (-8%; previous year: € 458.0 million). The decline is due particularly to the lower order backlog at the beginning of the year and the continued travel restrictions, which continue to influence the service business. In addition, the recovery in order intake will only be reflected in sales revenues time delayed. The export ratio was 68% (previous year: 64%).

Results of Operations, Financial Position and Net Worth // Free cash flow clearly positive in the 1st quarter

The earnings situation continued to develop positively under persistent difficult conditions due to to stringent and sustainable cost and liquidity management. EBITDA amounted to € 27.7 million (previous year: € 43.2 million). EBIT reached € 11.8 million (previous year: € 25.3 million). The EBIT margin was 2.8% (previous year: 5.5%). EBT amounted to € 11.5 million (previous year: € 24.8 million). The group reported EAT of € 8.0 million as of 31 March 2021 (previous year: € 17.2 million). Especially the financial position was further strengthened: Free cash flow improved significantly and was already clearly positive in the 1st quarter at € 39.6 million (+208%; previous year: € -36.7 million).

Employees // Strong team spirit at DMG MORI

As of 31 March 2021, the group had 6,642 employees, including 223 trainees (31 December 2020: 6,672). Personnel expenses amounted to € 126.6 million (previous year: € 141.0 million).

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

Expenses for research and development remained stable at a high level of € 16.3 million, (previous year: € 17.6 million). With dynamic and excellence, we are systematically developing from a machine builder into an integrated solution provider in the manufacturing environment. The focus is on the strategic triad of automation, digitization and sustainability.

At DMG MORI, technology leadership and sustainability belong together. As one of the first industrial companies, DMG MORI has had a climate-neutral "Product Carbon Footprint" since January 2021. From raw material to delivery, all machines delivered worldwide are completely CO2 neutral.

The DMG MORI Digital Event Pfronten was a success with over 8,000 participants and three world premieres. In mid-February, DMG MORI received the “Intelligent Manufacturing Award 2020” from Microsoft for CELOS Next – a prestigious award for digital excellence.

Forecast 2021 // Expansion through innovations and investments

2021 will remain challenging. Market recovery is impacted globally by rising raw material prices, longer delivery times and more difficult material supply. Global consumption for machine tools is expected to increase by +15.2% to € 66.6 billion in 2021 (October forecast: +17.7%), according to the latest April forecast by the Association of German Machine Tool Builders (VDW) and the British economic research institute Oxford Economics.

DMG MORI is starting the financial year 2021 with confidence and expects a sustained upturn in demand – provided there are no significant effects from the corona mutations. Due to the good business development in the 1st quarter, we are raising the 2021 forecast significantly: Order intake is now expected to reach around € 2.0 billion (previously: around € 1.7 billion). We now assume sales revenues of around € 1.8 billion (previously: around € 1.7 billion). We currently expect EBIT of around € 60 million, compared with around € 30 million previously. Free cash flow is assumed to be around € 70 million (previously: around € 20 million).

In the course of the year, we will focus on the future with further innovations. One example is the new subscription business model: We are pushing ahead with the same model in the machine building sector that can no longer be imagined without for movies and music. With PAYZR – PAY with Zero Risk – and the new 3-axis universal milling machine M1, DMG MORI customers can accelerate innovation cycles and at the same time avoid investment costs by subscribing to the M1 instead of purchasing it.

In addition, we continue to invest. Due to the increasing importance of the fast-growing Chinese market, we are planning to build a highly automated and consistently digitized 35,000 m2 production plant for 5-axis machines in Pinghu near Shanghai and to open it at the end of 2022. The total investment of around € 75 million underlines DMG MORI's growth plans in China. As a result of this expansion, investments in property, plant and equipment and intangible assets will increase to around € 80 million for 2021 (previously: around € 60 million).

DMG MORI is strategically and financially well positioned thanks to high innovative strength, consistent cost management and stringent liquidity securing. The strategic fit is more suitable than ever. Our comprehensive machine and automation portfolio is unique in the industry. With our global footprint, far-reaching service offerings and digitization solutions, we offer everything integrated, end-to-end and sustainable from a single source – worldwide! We are ready to start off with full power and are strengthening the strategic future fields of automation, digitization and sustainability in particular. Our worldwide presence, size and strength as “Global One Company” offer us and our customers clear advantages!

DMG MORI AKTIENGESELLSCHAFT
The Executive Board