GILDEMEISTER has reached its goals for 2001 ​​​​​​​

GILDEMEISTER was again able to increase its order intake as well as its sales volume and earnings in the financial year 2001, for the 7th successive year. The order intake reached 1,103.1 million Euro (+2%) despite a strongly decreasing section trend (-18%) taking its total to more than the previous year’s record level (1,083.8 million Euro).

The group’s profit increased by 24% to 1,144.2 million Euro, which is 220.9 million Euro more than the previous year’s.The group’s profitability improved again in the financial year 2001. According to currently provisional figures, the profit on the ordinary activities increased by 10% to 48.7 million Euro (previous year: 44.2 million Euro). The earnings before interest and tax (EBIT) increased by 12% to 70.6 million Euro (previous year: 62.9 million Euro). Subject to final audit the annual net profit will increase to 40.8 million Euro (previous year: 38.1 million Euro). The Executive Board will again propose to the Supervisory Board to distribute a dividend of 0.60 Euro.

Orders on hand of 381.8 millions Euro (previous year: 422.9 millions Euro) form a solid base for the new financial year. Despite the difficult global market conditions GILDEMEISTER is prepared for the challenges of the year 2002.

All in all, GILDEMEISTER was able to enter a satisfactory order intake despite the sharply declining industry trend. The order intake reached 1,103 million Euro and as a result was 2% or 19.3 million Euro above the previous year’s record (2000: 1,083.8 million Euro). Domestic orders slightly exceeded the previous year’s level with 566.1 million Euro (558.2 million Euro). Foreign orders increased by 2% or 11.4 million Euro to 537.0 million Euro. The increased exports are a result of an increased order intake from Europe – particularly Italy, Austria, Switzerland and Spain. Our order intake in America almost corresponded to the previous year’s level. In Asia GILDEMEISTER maintained its competitive position despite the continuing weakness of the market. We were able to increase our order intake compared with the previous year’s level in individual countries such as China, Korea and India. The foreign share increased to 49% (previous year: 48%).

We were able to realise another two-digit sales increase in the financial year 2001 for the 7th successive year. GILDEMEISTER increased its sales volume by 24% to 1,144.2 million Euro. This is 220.9 million Euro more than the previous year (923.3 million Euro). Domestic sales increased by 17% or 82.7 million Euro to 566.1 million Euro. International business increased by 31% or 138.2 million Euro to 578.1 million Euro. The export share increased to 51% (previous year: 48%). The strongest performer was again the group’s machine business with 77%. This includes the turning machines and centres from GILDEMEISTER, GRAZIANO and FAMOT, the milling machines, processing centres and laser machines from DECKEL MAHO and in the future the ultra-sound machines from SAUER. With a clear increase in sales volume, 23% of the external sales were attributed to the services of the DMG Vertriebs und Service GmbH (previous year: 21%).

On December 31st, 2001 the group’s orders on hand amounted to 381.8 million Euro. This was a reduction of 10% compared to the previous year (2000: 422.9 million Euro) which is due to our capacity adjustment measures, the resulting shorter delivery times and lower order intake during the last six months of the year. From a mathematical point of view, our orders on hand correspond to a production capacity utilisation of approximately four months, thus forming a good starting point for the current financial year.

The group’s profitability for the financial year 2001 improved again with double-digit figures. The result on ordinary activities increased by 10% to 48.7 million Euro (previous year: 44.2 million Euro). EBIT reached 70.6 million Euro (+12%) compared with 62.9 million Euro during the previous year. EBITDA (earnings before interest, taxes, depreciation and amortisation) increased to 103.3 million Euro (+17%) compared with 88.4 million Euro.

The group’s annual net profit increased to 40.8 million Euro (previous year: 38.1 million Euro). These figures are subject to final audit. Due to the positive financial results in 2001, the Executive Board will propose to the Supervisory Board a dividend of 0.60 Euro for the past financial year.

The performance of the GILDEMEISTER share during the year 2001 was all together stable and based on a level of 9 Euro. In the fourth quarter our share, too, was no longer able to avoid the general weakness of the stock markets. Due to the terror attacks in the United States it was temporarily traded at an all-time low of 6.20 Euro on September 21st, 2001. However, as early as October it showed a clearly more dynamic performance than the SDAX and had soon reached its old level. Towards the end of the year (December 28th, 2001) the GILDEMEISTER share was quoted at 9.32 Euro; this is a rise in market price of 13.6%. Whilst the capital market showed itself weak and volatile during 2001, our security proved to be a solid investment with a dividend yield of 6.4%. Since December 27th, 2001 the GILDEMEISTER share has been listed on the MDAX. The listing on the MDAX had a positive influence on the price performance. Right at the beginning of the new financial year the share showed an upward trend. On January 11th, 2002 it reached a price of 11.44 Euro. Due to its membership of the Midcap Index the GILDEMEISTER share now plays a more important role for institutional investors. Its existing potential and attractive price-earnings ratio ensure that it continues to be a good investment. Numerous analysts recommend purchase of the share.

On December 31st, 2001 GILDEMEISTER employed 5,212 people, 203 of whom were trainees (at 31.12.2000: 4,637). During the course of the year the number of employees increased by 562 skilled personnel and 13 trainees. This increase was mainly limited to a further expansion of services in the international DMG-Gesellschaften (Austria, Iberica, Taiwan and Korea) and in both the national production locations of Pfronten and Seebach. There were no further staff increases during the fourth quarter of the year. The strengthening of our skilled personnel is in line with balanced, contemporary personnel planning and in accordance with the corporate development.

The costs for wages and salaries including social insurance contributions for the past financial year amounted to 268.1 million Euro.The costs of research and development during the reporting period amounted to 62.0 million Euro. During the year 2001, 25 machines were developed and presented to the world – particularly at the EMO, the main industry event of the year. 90% of our modern delivery programme has been developed during the past three years. And so GILDEMEISTER is prepared for the latest challenges of the market. Our innovations focus mainly on the integration of the turning and milling technologies, the consistent development of the three-dimensional laser processing, the new development of a complete line of products of CNC multi-spindle automatic lathes and the substantial increase in processing speeds through fast linear drives and dynamic kinematics. We would also like to stress the introduction of ultrasound processing which has enabled GILDEMEISTER to open up a new spectrum of application for the processing of modern, hard-brittle materials.

Forecast 2002: From today’s point view a prognosis for the current financial year continues to be problematic. It cannot yet be predicted when demand will pick up. In their latest publications, the German machine construction association (VDMA) assumes that from the middle of 2002 the timing of an increase in machine construction orders could be postponed even further, and expects a decrease in machine production by 2%. The German association of machine tool factories (VDW) and the Ifo Institute (Economic Research Institute) in Munich even expect a drop in production by 10% in the machine tool sector.

GILDEMEISTER is prepared for any challenges the future might bring and ready to assert themselves even under difficult market conditions. The world-wide presence of the DMG Vertriebs- und Serviceorganisation in all important industry markets created the conditions required for the achievement of adequate market shares. As full-liner, GILDEMEISTER offers the world-wide most comprehensive delivery programme in the metal-cutting machine tools area. With innovative products and numerous technological advantages along with customer-orientated services we will once again prove our top position in the year 2002.

All in all, we expect a rather restrained course of demand during the current financial year. For the first quarter of 2002 we expect an order intake that could be at or slightly below the level of the third and fourth quarters of the past year. With regard to the order intake development we will make an annual forecast in our first quarterly report. From today’s point of view we assume that demand will improve during the course of the year, and that our order intake can reach approximately 1 billion Euro during the course of the entire year. As a result, sales could again be at around 1 billion Euro in 2002. Even with an initially unfavourable cyclical movement the expected sales figures are, at present, realistic due to the existing orders on hand. Its is planned that the group’s sales volume during the first quarter of this year should be at around the previous year’s level. With regard to the profit (EGG) we expect a decline to 4 – 6 million Euro during the first quarter, due to the high start-up costs for the new products. A more accurate statement on the profit development for the current financial year is currently not possible. We are working on maintaining the group’s profitability for the year 2002 even under more unfavourable international economic conditions. GILDEMEISTER will adjust to each market condition as required, rationalise further and utilise models for flexible working hours.

Our investments will correspond with the depreciation value. With regard to the service business, personnel are working to full capacity. Regarding production capacity for machines, the number of staff will be adjusted as required on a selective basis. Even faster than ever before we will bring our new developments to market maturity in order to allow additional sales. We will intensify our marketing activities consciously and precisely, and convincingly present the technological superiority of our products at 74 trade fairs and events before all the important world markets.

Further information on the development of the GILDEMEISTER group is included in the “Interim Report – 4th Quarter 2001” which is available to journalists and potential shareholders or can be viewed on the Internet under www.gildemeister.com.

GILDEMEISTER Aktiengesellschaft 
The Executive Board