DMG MORI exceeds forecasts for 2021
- Order intake grows to € 2,517.2 million (+57%; previous year: € 1,599.4 million)
- Sales revenues goes up to € 2,052.9 million (+12%; previous year: € 1,831.3 million)
- EBIT increases to € 123.8 million (+52%; previous year: € 81.7 million)
- EBIT margin improves to 6.0% (previous year: 4.5%)
- Free cash flow rises to all-time high of € 179.9 million (+1,046%; previous year: € 15.7 million)
Chairman of the Executive Board Christian Thönes: “Challenging, but successful – that was 2021 for DMG MORI. We demonstrated financial strength, resilience, innovative power and team spirit. We were able to mitigate the economic consequences of the pandemic to a considerable degree and solve the global supply shortages for the most part in close cooperation with our partners and suppliers. We even exceeded our forecasts at the end of the year. The strategic fit of automation, digitization and sustainability is currently more suitable than ever.”
Order intake // Core business above the high pre-corona level of 2019
The global market for machine tools was on course for recovery in 2021. This development was impacted by the ongoing pandemic, material availability and supply shortages, rising inflation as well as high raw material and transportation costs. Order intake grew by +57% to € 2,517.2 million (previous year: € 1,599.4 million). New machine business in particular increased significantly by +71%. Overall, the core business with machine tools and services was even +5% above the high pre-corona level of 2019 (€ 2,401.8 million). Domestic orders increased by +62% to € 747.4 million (previous year: € 462.0 million). International orders rose by +56% to € 1,769.8 million (previous year: € 1,137.4 million). The share of international orders was 70% (previous year: 71%).
Sales revenues // Supply capability secured
Sales revenues rose by +12% to € 2,052.9 million despite more difficult material supplies, increasing logistics shortages as well as high raw material and transport costs (previous year: € 1,831.3 million). The export share was 68% (previous year: 70%). Pressure on supply chains was and remains high worldwide. Thanks to a stable, long-standing network with partners and suppliers, DMG MORI was able to ensure delivery capability and avoid serious production interruptions.
Results of operations, financial position and net worth // Free cash flow at all-time high
The results of operations also developed successfully despite more difficult market and general conditions. We have significantly improved our results and sustainably optimized our cost structure further with consistent measures. EBITDA grew by +22% to € 190.8 million (previous year: € 156.7 million). EBIT increased by +52% to € 123.8 million (previous year: € 81.7 million). The EBIT margin improved to 6.0% (previous year: 4.5%). The group reported EAT of € 85.6 million as of 31 December 2021 – a rise of 64% compared to the previous year (€ 52.1 million).
The financial position also developed very positively: free cash flow rose to € 179.9 million and thus reached an all-time high (+1,046%; previous year: € 15.7 million).
Employees // Stable basis for growth course
On 31 December 2021, the group had 6,821 employees, including 225 trainees (31 Dec. 2020: 6,672). Personnel expenses amounted to € 522.7 million (previous year: € 486.9 million). The personnel quota improved to 25.1% (previous year: 26.9%).
Research and development // DMG MORI GREEN ECONOMY from raw material to recycling
Holistic sustainability in machine tool manufacturing – from raw material to recycling – and a unique future architecture for networked solutions consisting of machine, automation and digitization – this is what DMG MORI stands for. Together with DMG MORI COMPANY LIMITED, we presented 26 innovations in 2021 – thereof 7 world premieres, 3 automation solutions, 15 digital innovations including 6 technology cycles and 1 DMG MORI Components.
Already since 2017, DMG MORI has been advancing five important future fields that remain up-to-date and are firmly anchored in our corporate strategy. With dynamic and excellence, we are actively pushing our strategic fit of automation, digitization and sustainability as well as additive manufacturing and the DMG MORI Qualified Products (DMQP). We are consistently developing further into a holistic, sustainable solution provider in the manufacturing environment.
DMG MORI is regarded as an “enabler”, as a digital pioneer in machine tool manufacturing and has implemented a completely digital business model in 2021. With PAYZR (Pay with Zero Risk), we have successfully entered the “Subscription Economy” – the world of Software-as-a-Service and Equipment-as-a-Service. Customers benefit from fast innovation cycles without risk – with maximum planning security, cost and price transparency and full flexibility. Subscription & All-In instead of investment and purchase.
At DMG MORI, Sustainability and technology leadership are in harmony. DMG MORI has both a CO2-neutral “Company Carbon Footprint” and a climate-neutral “Product Carbon Footprint”. This includes direct and indirect emissions from our own value creation as well as indirect emissions from upstream processes along the supply chain (scope 1, 2 and 3 upstream). All machines delivered since January 2021 have been produced completely climate-neutral. DMG MORI has been awarded the Platinum Medal in the Sustainability Rating by the internationally renowned institute EcoVadis. This means that we are among the TOP 1% of over 35,000 companies evaluated worldwide.
Forecast 2022 // Global challenges, yet confidence for 2022
2022 will again be marked by major challenges, in particular due to the development in the Ukraine, of which the consequences are not yet completely foreseeable at present. DMG MORI strongly condemns the war of the Russian government against the Ukraine and has immediately stopped all deliveries of machines, spare parts, components and services to Russia as well as the production in Ulyanovsk. In addition, the global economy is impacted by the ongoing corona pandemic, more difficult material supply as well as high raw material and energy costs.
DMG MORI is a stable and reliable partner even under difficult external conditions. We have a strong foundation, a clear strategic plan for the future and are confident for the current financial year.
We are keeping up a high speed – both operationally and strategically – we innovate and invest further. We are strengthening our global presence with new production plants. The grand opening of the highly automated and fully digitized production plant DMG MORI Manufacturing Solutions in Pinghu near Shanghai is planned for 2023. Integrated automation and end-to-end 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.
For the financial year 2022, DMG MORI is planning order intake of around € 2.5 billion. Sales revenues are estimated to be around € 2.3 billion. We expect EBIT of around € 180 million. Free cash flow is to be around € 130 million. Our forecasts are subject to the condition that globally there will be no further impact from the Russia-Ukraine conflict.
DMG MORI AKTIENGESELLSCHAFT
The Executive Board
Disclaimer, Forward-looking statement
Company Profile // DMG MORI
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!
Forward-looking statements //
This press release contains forward-looking statements, which are based on current estimates of the management regarding future developments. Such statements are based on the management's current expectations and specific assumptions. They are subject to risks, uncertainties and other factors, as well as to the effects of the corona crisis, that could cause the actual circumstances including the results of operations, financial position and net worth of DMG MORI AKTIENGESELLSCHAFT to differ materially from or be more negative than those expressly or implicitly assumed or described in these statements. The business activities of DMG MORI AKTIENGESELLSCHAFT are subject to a range of risks and uncertainties, which may likewise render a forward-looking statement, estimate or forecast inaccurate. Should one of these factors of uncertainty or other unforeseeable event occur, or should the assumptions on which these statements are based prove incorrect, the actual results may differ materially from the results expressed, expected, anticipated, intended, planned, aimed at, estimated, projected or implied in these statements. Forward-looking statements must not be understood as a guarantee or assurance of the future developments or events contained therein.
There are two companies using the name “DMG MORI”: DMG MORI AKTIENGESELLSCHAFT with registered office in Bielefeld, Germany, and DMG MORI COMPANY LIMITED with registered office in Tokyo, Japan. DMG MORI AKTIENGESELLSCHAFT is (indirectly) controlled by DMG MORI COMPANY LIMITED. This release refers exclusively to DMG MORI AKTIENGESELLSCHAFT. If reference is made in this release to “DMG MORI“, this refers exclusively to DMG MORI AKTIENGESELLSCHAFT and its controlled companies within the meaning of Section 17 of the German Stock Corporation Act (Aktiengesetz – AktG). If reference is made to "Global One Company", this refers to the joint activities of DMG MORI COMPANY LIMITED and DMG MORI AKTIENGESELLSCHAFT including all subsidiary companies.