DMG MORI SEIKI successfully closes 2013

Financial year 2013:

• Order intake of € 2,101.1 million once again above the € 2 billion mark
• Sales revenues reached € 2,054.2 million (previous year: € 2,037.4 million)
• Earnings before taxes (EBT) gained 12% to € 135.0 million (previous year: € 120.1 million)
• Annual profit up by 13% to € 93.2 million (previous year: € 82.4 million)
• Proposed dividend increase to € 0.50 per share.

Bielefeld. The DMG MORI SEIKI group has achieved its goals for financial year 2013. In a challenging market environment we were able to improve the quality of earnings. The EBT and the annual profit each achieved their highest figure in the company’s history.

Despite the difficult market conditions, we were able to post order intake of € 2,101.1 million (previous year: € 2,260.8 million). Domestic orders amounted to € 705.9 million (previous year: € 735.8 million). International orders were at € 1,395.2 million (previous year: € 1,525.0 million). Thus the proportion of foreign business was 66% (previous year: 67%).

Sales revenues rose to € 2,054.2 million and were higher than the record level of the previous year (previous year: € 2,037.4 million). Thus we have clearly performed better than the industry average. International sales revenues rose by 5% to € 1,377.7 million; domestic sales revenues were € 676.5 million. The export ratio rose to 67%.

On 31 December 2013, the order backlog at the group was € 1,031.9 million; it was thus € 28.4 million or 3% above the previous year’s figure (31 Dec. 2012: € 1,003.5 million).

The DMG MORI SEIKI group was able to improve its key earning figures at 31 December 2013 against the previous year. The EBITDA rose over the whole year by 12% to € 193.9 million (previous year: € 173.8 million). EBIT amounted to € 147.6 million (+11%, previous year: € 132.9 million), the EBIT margin rose to 7.2% (previous year: 6.5%). EBT rose by 12% to € 135.0 million (previous year: € 120.1 million) and the annual profit in the group reached € 93.2 million (+13%; previous year: € 82.4 million). In EBT, as in the annual profit, we have achieved the highest figures in the company’s history.

Equity rose by € 389.1 million to € 1,164.4 million (previous year: € 775.3 million). This rise essentially results from the net income for the year and the capital increases. The equity ratio rose to 57.9% (previous year: 47.9%).

On 31 December 2013, the group employed 6,722 employees, including 225 trainees, (previous year: 6,496). The number of employees rose in comparison with the previous year by 226. In the “Machine Tools“ segment we have hired new staff at our sites in Pleszew, Bielefeld and Pfronten. The increase in personnel in the “Industrial Services“ segment was due predominantly to the expansion of our sales and service capacity in Russia, Italy and Germany.

The DMG MORI SEIKI AKTIENGESELLSCHAFT share recorded a positive performance in the past year and gained 41% (year on year). The decisive factors in this were the excellent business performance, the positive dynamic on the stock markets, and the successfully implemented capital measures. The MDAX achieved a gain of around 36%. In the stock market year 2013, the share was initially quoted at € 16.38 (2 January 2013) and reached its highest value of € 24.53 on 6 November 2013. The lowest value of the year was € 15.00 (5/8 April 2013). The share closed on 30 December 2013 at € 23.15. The share is currently being quoted at € 22.53 (XETRA closing rate of 11 March 2014). The Executive Board and the Supervisory Board of DMG MORI SEIKI AKTIENGESELLSCHAFT will propose to the Annual General Meeting to distribute a higher dividend of € 0.50 per share (previous year: € 0.35) for financial year 2013. Taking the annual closing price 2013 as a base, this results in a dividend yield of 2.2%.

Outlook 2014:

The Institute for the World Economy (IfW) expects worldwide production to grow by 3.7% in 2014. The ifo business climate index has risen in Germany for the third time in succession; the prospects for future business development continue to be positive.

The German machine tool industry benefited at the beginning of the year from the positive expectations of the economy. The order level at the start of the year was rising. The German Machine Tool Builders' Association (VDW) and Oxford Economics are predicting that the machine tools market worldwide will record growth of 5.0% over the course of the financial year.

Order intake in January and February was € 382.4 million. For the first quarter of 2014 we are expecting order intake of around € 550 million (previous year: € 518.7 million) and for the entire year of around € 2.3 billion. In the first quarter of 2014 we are expecting sales revenues higher than the previous year’s figure (1st quarter 2013: € 466.1 million). In financial year 2014 we are planning sales revenues of around € 2.2 billion. In the first quarter of 2014 the results will be greater than those of the previous year’s quarter.

For financial year 2014 we are expecting a positive business environment overall and moderate growth. We are primarily anticipating that the rate of market development will be considerably faster in the second half of the year. Positive effects are expected predominantly from expanding our production sites in the growth markets.

DMG MORI SEIKI AKTIENGESELLSCHAFT
The Executive Board