DMG MORI AG

Pre-Annual General Meeting Information • May 7, 2021

119th Annual General Meeting

Speech of the Chairman of the Executive Board Christian Thönes

7th May 2021

Check against delivery.

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− Check against delivery −

Speech on the 119 th Annual General Meeting

of DMG MORI AKTIENGESELLSCHAFT on 7 th May 2021

Dear Ladies and Gentlemen,

I am very pleased that you are participating in the virtual 119th Annual General Meeting of DMG MORI AKTIENGESELLSCHAFT. Last year we had hoped to be able to meet in person this year. However, under the given circumstances, it is right to hold the AGM virtually once again. Health and safety have absolute priority.

But now, first of all: welcome – also on behalf of my colleagues on the Executive Board. Today, we are concentrating on what is possible and what matters. What drives us. Today we can proudly say: Our strategic fit of automation, digitization and sustainability is more suitable than ever and fits perfectly into the "Next Normal"! Our strategy is paying off. Especially under extremely difficult conditions, we can see how resilient and powerful DMG MORI is.

We look back on a challenging year 2020. The world has changed rapidly within a very short time. It is clear: Corona was and is a catalyst – the pandemic has released unimagined forces. Many things had to be rethought completely, made more digital and, above all, faster within the shortest time. At DMG MORI, the pandemic has confirmed and accelerated our strategic direction in particular.

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A year ago, I said at this point: "2020 will be even more challenging than 2019". This has proven to be true. 2020 was an exceptional year: Corona pandemic plus economic weakness, geopolitical uncertainties, industrial restructuring. Also, DMG MORI could not escape these consequences. Order intake, sales revenues and result were clearly below the record year 2019.

Nevertheless, I can also report many good things today. In view of this exceptional year, we have, on the one hand, achieved a strong result. On the other hand, we have fulfilled our forecasts. We have secured financial stability. And we have significantly increased our resilience!

Times of crisis are times of leadership. Crisis management cannot and must not be delegated. At DMG MORI, we have set two priorities:

• the health and safety of our employees, customers and partners, and
• the health of our company.

We provide our employees with extensive testing options. DMG MORI will also be one of the first companies to offer its employees vaccinations – as soon as this becomes possible. The negative effects of the crisis could successfully be limited by rapidly introduced and consistently implemented measures to reduce costs, increase flexibility and secure liquidity – while maintaining a stable budget for research and development. We focus on our strengths. We will make DMG MORI even more innovative, digital and powerful.

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As part of "Global One Company", with clearly aligned sales and service structures worldwide, we manage the home market Germany and the EMEA region (Europe, Middle East, Africa) as well as the Chinese and Indian markets. Through DMG MORI COMPANY LIMITED, we are also successful in Japan, North and South America, and other parts of Asia. Together we have 138 sales and service locations all over the world, thereof 15 production plants. Every day we are present for over 100,000 customers from 54 industries in 86 countries.

DMG MORI has a unique position:

• with a broad machine and automation portfolio,
• a global footprint for direct customer contact,
• far-reaching service offerings and integrated digitization solutions.
• ➔ Everything end-to-end and sustainable from a single source – worldwide!

Order intake

Demand for machine tools declined significantly due to the already weak global economy and rapid spread of the corona virus. Under these extremely difficult global market and economic conditions, DMG MORI achieved an order intake of € 1,599.4 million, which, as expected, was significantly below the record year 2019 (-38%; previous year: € 2,563.1 million). In the core business with machine tools and services – excluding the Energy Solutions division – the decline was -34%.

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Sales revenues

The development of sales revenues was also marked by the corona pandemic. As you know, in April 2020, there was a temporary partial shutdown at our European production plants and in some areas of selected sales and service companies for health protection. In addition, the service and spare parts business was affected by increasing travel restrictions over the course of the year. As expected, sales revenues of € 1,831.3 million were significantly below the previous year (-32%; € 2,701.5 million).

Segmental reporting

The business activities in our segments developed as follows:

The "Machine Tools" segment includes the Group's new machines business. Sales revenues amounted to € 1,047.0 million (previous year: € 1,433.2 million) and thus achieved a share of 57% (previous year: 53%).

The "Industrial Services" segment had a share of 43% (previous year: 47%). Sales revenues were € 784.1 million (previous year: € 1,268.1 million).

"Corporate Services" contributed a share of less than 1% to sales revenues.

Order backlog

As of 31 December 2020, the group's order backlog amounted to € 852.2 million (31 Dec. 2019: € 1,197.4 million). This results in an average calculated range of about four months for "Machine Tools".

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Results of Operations, Financial Position and Net Worth

Against the background of difficult global market and economic conditions and rapidly implemented measures DMG MORI has successfully closed the challenging financial year 2020.

• EBITDA was € 156.7 million (previous year: € 299.8 million).
• EBIT amounted to € 81.7 million (previous year: € 221.7 million).
• The EBIT margin was thus 4.5% (previous year: 8.2%).
• EBT reached € 74.9 million (previous year: € 219.1 million).
• EAT was € 52.1 million (previous year: € 154,4 million).

The financial situation was also affected by the consequences of corona. Stringent liquidity assurance enabled us to achieve a positive free cash flow of € 15.7 million (previous year: € 168.8 million).

In April 2020, we extended our existing syndicated credit line of € 500.0 million early at improved conditions.

The balance sheet total fell to € 2,191.5 million as of 31 December 2020 (previous year: € 2,469.6 million).

Equity decreased by € 21.9 million to € 1,259.5 million (previous year: € 1,281.4 million). The equity ratio rose by 5.6 percentage points to 57.5% (previous year: 51.9%).

Net financial liabilities amounted to € 123.5 million (previous year: € 154.0 million). This includes cash inflows of € 44.5 million resulting from the sale of shares in Magnescale Co. Ltd. to DMG MORI COMPANY LIMITED.

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Share performance

At the start of the 2020 stock market year, the DMG MORI share was quoted at € 42.50 (2 Jan. 2020) and closed the year on 30 December 2020 at € 41.10. The share displayed a stable development over the year and has proven itself a solid investment, even in times of turbulences and volatility on the stock markets. The share was listed in the SDAX until 18 December 2020, when a regular review by the German Stock Exchange resulted in its removal via a Fast Exit. The share is currently quoted at € 41.95 (6 May 2020).

Market capitalization amounted to € 3.24 billion in the reporting year (reporting date: 30 Dec. 2020).

Earnings per share amounted to € 0.66 (previous year: € 1.93). Due to the domination and profit transfer agreement, DMG MORI AKTIEN-GESELLSCHAFT has not paid a dividend since the financial year 2016. Instead, DMG MORI GmbH has undertaken to pay a compensation ("guaranteed dividend") of € 1.17 gross per share to the outside shareholders for each full financial year.

Let me turn to DMG MORI AKTIENGESELLSCHAFT:

DMG MORI AKTIENGESELLSCHAFT has management and holding functions. Earnings depend essentially on income from domestic subsidiaries. Under the domination and profit transfer agreement, the earnings after tax of € 27.1 million are transferred to DMG MORI GmbH (previous year: € 95.7 million). My dear shareholders, you will find further details of the financial year 2020 in the Annual Report. Explanatory notes in accordance with section 289(4) and (5) and in accordance with section

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315(4) of the German Commercial Code (HGB) have been set out for you by the Executive Board in the combined management and group management report. All the reports are generally accessible on the internet.

Innovations

Dear Ladies and Gentlemen, to use an image from soccer: We have a strong team. Our defense stands! But to win games, you also need a strong offense.

We have worked hard in recent years, built a strong foundation and increased our competitiveness. For many years we have been actively advancing the expansion of our future fields. Innovations are the only way out of the crisis. I am convinced that the next few years will be decisive and will show who will remain competitive in the long term. The measures we initiated at an early stage are now paying off. DMG MORI, I tell you with pride and conviction, is consistently expanding its position as the world's number 1 in the machine tool sector.

We keep our research and development budget stable at a high level. Expenditures in 2020 amounted to € 66.7 million (previous year: € 72.0 million). Last year, we presented 22 innovations as "Global One Company" – including 6 world premieres, 4 automation solutions and 12 digital innovations that expand our core business with machine tools and integrated automation solutions. We will continue this course.

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Investments

In 2020, our capital expenditure in property, plant and equipment as well as intangible assets amounted to € 80.0 million (previous year: € 110.0 million). Three highlights:

• 1. At DECKEL MAHO Pfronten we have put our new monoBLOCK Excellence Factory into operation last September. The core of the state-of-the-art flow assembly are 34 AGV transport systems ("Automated Guided Vehicles") as well as the fully digitized value chain developed by our own employees based on the "no-code" platform TULIP. This together allows an increase in productivity of 30%.
• 1. At our Polish production and supplier plant FAMOT, we expanded the mechanical production with six machines from our portal series. All of them are automated with our rotary pallet storage system RPS.
• 1. We invested further in our "GLOBE – Global One Business Excellence" project. Based on SAP S4 HANA, we are implementing a uniform ERP system across the group at DMG MORI.

Ladies and gentlemen, we continue to innovate – and we continue to invest! High-precision machine tools and technologies from DMG MORI are at the beginning of global value chains. The machine is and remains our core! DMG MORI has a unique position. Our 154 different machine tool models and 53 automation solutions are high-tech instruments and a guarantee for progress. Complemented by our far-reaching service offerings and integrated digitization solutions we thus offer everything end-to-end and sustainable. With dynamic and excellence – worldwide!

I am convinced: Until 2025 at the latest, the equation for a purchase will consist of 1/3 machine, 1/3 service and 1/3 software. At DMG MORI, customers therefore receive everything from a single source.

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With our strategic triad of automation, digitization and sustainability DMG MORI is the No. 1 partner for the future for its customers!

Future fields

Automation is the key to flexible production systems. We therefore offer our customers a modular portfolio with 53 automation solutions – either for workpiece or pallet handling – bundled up with a proprietary cell controller technology. Customers thus receive complete turnkey solutions including end-to-end connectivity. For example, our universal solutions include:

• our versatile pallet handling system PH Cell for up to 40 pallets with a loading weight of 600 kg and
• the flexible Robo2Go that is available for turning machines and, since September 2020, also for milling machines.

According to an analysis by RWTH Aachen, machine tools are often operating at less than 50% productivity. A machine tool is most productive and thus most sustainable when it runs around the clock and has a high level of technology integration. This is exactly the claim of DMG MORI. Through technology integration, automation, digitization – coupled with perfect service – DMG MORI optimizes the efficiency, quality and productivity of its customers across all processes.

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Digitization is the decisive strategic future field. The corona pandemic has once again sharpened awareness of this. Microsoft CEO Satya Nadella already got to the point a year ago: "The world is experiencing two years of digital transformation in just two months".

At DMG MORI, the expansion of the whole digital architecture was significantly accelerated – to the benefit of our customers, tested in our own production plants. From the machine through the process chain to open ecosystems including platform-based business models, such as PAYZR with Equipment-as-a-Service and Software-as-a-Service. This means in concrete terms:

• 1) We develop software tools that make machine tools more productive, more future-proof and thus more sustainable.
• 2) We open up completely new, digital business models by selling digital products and data-based services.
• 3) We are increasingly digitizing our own value chain. In doing so, we first test all products and processes internally. This way, we can create more transparency, efficiency and a higher quality for our customers.

Over the past four years, we have invested a high double-digit million euro sum in digitization and thus significantly increased the quality and range of our digital offerings. Some examples:

• We enable integrated processes in digitization with DMG MORI Digital: Our offering includes, among others, DMG MORI Connectivity, CELOS APPs, CELOS Update – e. g. in the Digital Manufacturing Package, DMG MORI Technology Cycles, DMG MORI Powertools and much more!

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• Our customer portal "my DMG MORI" is our digital face to the customer and thus a further important pillar. Meanwhile, more than 25,000 customers with over 120,000 machines are registered. They benefit from up to 70% faster response times by our service experts – thanks to direct contact, high transparency via Track & Trace and access to all information.

Our 3 goals for 2021:

• 1. more than 30,000 customers,
• 1. more than 140,000 registered machines,
• 1. increase the service interaction to over 60%

With the upgrade to the maintenance and service platform WERKBLiQ it is possible for our customers to also integrate thirdparty machines. The clear goal: DMG MORI is also the No. 1 in service for our customers!

• With TULIP we provide customers with an easy entry into the digitization of manufacturing processes. With this "no code" platform, developed by engineers from the research institute MIT in Boston, our customers can create their own APPs in shortest time – without any programming knowledge. More than 100 DMG MORI customers are already using TULIP today. And that integrated: Customers can access their individual APPs created with TULIP directly on their DMG MORI CELOS V6 machine. More than 600 workstations and over 80 self-developed APPs are in use at our own production plants. With an upward tendency. And just a few weeks ago, the U.S. consulting firm Gartner named TULIP a "Challenger," underlining the success of this start-up.
• The Digital Twin describes the real-time simulation of machine, automation, and process. Customers can virtually simulate the production of new components and thus optimize processes and

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components. The result: up to 30% faster production ramp-up and up to 30% lower component costs.

• DMG MORI has co-initiated and co-founded ADAMOS – alongside other world market leaders – as an open network for digitization by machine builders for machine builders, their suppliers and customers. With this alliance we are setting a standard for new business models, together with more than 30 notable partners. New from May is the "DMG MORI Store powered by ADAMOS". This portal provides customers with fast and direct access to digital "end-to-end" solutions as a subscription model. Simply via "single sign-on" from the "my DMG MORI" customer portal – with a one-time authentication of the user. The ADAMOS HUB enables cross-manufacturer, automatic data exchange between the APPs.

Courage and a pioneering spirit – that was the starting point for digitization at DMG MORI. We dared to try something new, learned a lot in the process and, above all, tested it internally. Our customers are now benefiting from this – we are now paving their way to digitization. Integrated and from a single source: We are increasingly developing into an end-to-end solution provider in the manufacturing environment.

In addition to automation and digitization, we actively promote the topic of sustainability – and that since long before it became the focus of global attention. At DMG MORI, technological leadership and sustainability go hand in hand. We also take on comprehensive responsibility in this area. Personally, I am convinced: The corona pandemic will pass – the climate crisis won't!

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Already since May 2020, we have been climate-neutral in our own value added. Our so called "Company Carbon Footprint" is therefore zero. Since January of this year all DMG MORI machines delivered worldwide are completely climate-neutral – and that along the entire value chain: from raw material to the delivery of our machines to the customer. Thus, as one of the first industrial companies DMG MORI also has a climate-neutral "Product Carbon Footprint".

We bundle our climate neutrality measures into three initiatives:

• 1. GREENMACHINE the completely CO2-neutrally produced machine.
• 1. GREENMODE the energy and emission-efficient operation at the customer's site: At DMG MORI, we continuously optimize the energy and emission efficiency of our products. This is done, for example, through CELOS APPs, consumption-optimized components such as LED lighting, regenerative braking and intelligent control of all aggregates. Compared to the predecessor model, our machines thus save up to 30% energy – and at the same time protect the environment and resources.
• 1. GREENTECH our engagement for the further development of green technologies. Our customers manufacture highly innovative components on DMG MORI machines, for example for wind turbines, hydropower plants or fuel cells. In our Technology Excellence Centers, we support them worldwide with specific know-how.

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Automation, digitization, sustainability – the key to success in all future fields is the same: our employees. I cannot emphasize this enough: Our great team is our most important success factor. Our greatest asset. In challenging times, this is truer than ever.

Modern human resources management also means continuously inspiring all employees to learn. In this way, DMG MORI will become a permanently learning company with innovative, digital learning concepts that are available at all times. We rely primarily on our DMG MORI DIGITAL ACADEMY and selected tools such as the no-code platform TULIP or the learning platform Masterplan – the Netflix of professional development!

Our employees produce more than 30 DMG MORI-specific films per month with exclusive content for internal training. For digitization alone, more than 750 learning videos are already available on Masterplan – and in cinema quality! In less than a year, over 4,000 of our employees have used 120,000 learning videos. Continuous training – that's a must for me, too, as it is for all of us.

We are convinced that we can accelerate this change process with our vision-mission statement. This is based on our TOP values: Trust – Openness – Passion. We strengthen our customers – in manufacturing and digitization! Only if our customers perform efficiently in the long term DMG MORI will also be successful in the long term. We want to be the most attractive global machine tool manufacturer with digitized and sustainable products.

Our employees consistently put our vision & mission into practice. They are committed to DMG MORI – and DMG MORI to them. On 31 December 2020, the Group had 6,672 employees, including 279 trainees (previous

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year: 7,245 employees, including 347 trainees). Together as a team, we managed the crisis excellently and implemented a wide range of personnel measures at an early stage. In this way, we offer stability – especially in turbulent times. We create secure jobs and offer attractive prospects for the future. Personnel expense decreased significantly to € 486.9 million (previous year: € 592.4 million). The personnel ratio was 26.9% (previous year: 21.9%).

Together with DMG MORI COMPANY LIMITED, over 12,000 employees are there for our customers every day. DMG MORI is proud to live a culture of diversity. At DMG MORI, all employees and applicants are valued regardless of nationality or ethnic background, gender, age or religion. This equal opportunity and the cultural exchange promote diversity and enhance performance. On behalf of the entire Executive Board, I would like to take this opportunity to once again thank all employees of our "Global One Company" for their outstanding commitment! And the whole team can be proud of what we have achieved together – and will achieve in the future. Many of you went the famous extra mile last year, tackled tasks, developed ideas, stood up for our customers and paid outstanding attention to costs!

People's character shows in times of crisis – and the character of our team is exemplary: I am particularly proud of the exceptionally high level of empathy, loyalty, and solidarity in our "Global One Company". DMG MORI stands firmly together – for this I would like to express my sincere thanks!

We were very pleased that the city of Bielefeld honored DMG MORI last year as a particularly family-friendly company.

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The training quota in our German production plants was 10%, and thus once again above the industry average. With heart and curiosity, anything is possible at DMG MORI. The future belongs to young people. Passionate junior employees are able to help shape DMG MORI from early on. This way, we support and appeal to young talents at an early stage – internationally and digitally.

Outlook for the Financial Year 2021

Dear shareholders, we all hope for a quick end to the pandemic. We have handled the crisis excellently – and this has also strengthened your trust in DMG MORI. We made a good start into the year and are confident about the further course of business.

The DMG MORI Digital Event Pfronten was a success with over 8,000 participants and three world premieres. Our DMG MORI events in China with over 60,000 participants via WeChat also show what is possible digitally.

In mid-February, DMG MORI received the "Intelligent Manufacturing Award 2020" from Microsoft for CELOS Next – a prestigious award for digital excellence.

These are two highlights of many more to come. We are looking forward to this and working hard for it.

However, 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%),

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according to the latest April forecast by the Association of German Machine Tool Builders (VDW) and the British economic research institute Oxford Economics.

On 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).

Sales revenues reached € 421.6 million (-8%; previous year: € 458.0 million). The decline is due in particular to the lower order backlog at the beginning of the year and the ongoing 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 order backlog amounted to € 1,002.6 million as of 31 March 2021, (31 December 2020: € 852.2 million).

The earnings situation continued to develop positively thanks to stringent and sustainable cost and liquidity management. EBIT reached € 11.8 million (previous year: € 25.3 million). The EBIT margin was 2.8% (previous year: 5.5%).

The financial position was further strengthened: Free cash flow improved significantly and was already clearly positive in the first quarter at € 39.6 million (+208%; previous year: € -36.7 million).

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For 2021, we have a lot of tailwind. We expect a sustained upturn in demand – provided there are no significant effects from the corona mutations. Due to the good business development in the first quarter, we raised the 2021 forecast significantly: Order intake is now expected to reach around € 2.0 billion. We now assume sales revenues of around € 1.8 billion. We expect EBIT of around € 60 million and free cash flow of around € 70 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 – our customers can accelerate innovation cycles and circumvent investment costs at the same time. They receive planning security and price transparency. Sub & All-In instead of investments and purchase.

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.

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Dear shareholders, 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-toend and sustainable from a single source – worldwide!

Dear owners, your trust is our basis, incentive and obligation. On behalf of the whole Board, I would like to thank you for your support and reliability! We are motivated to the maximum! For our customers. For you. For DMG MORI!

May you and your families stay healthy!

Thank you very much for your attention!

Christian Thönes Chairman of the Executive Board 7 th May 2021

Forward-looking statements:

This release contains forward-looking statements, which are based on current estimates of the management regarding future developments. Such statements are based on management's current expectations and certain 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 Nara, Japan. DMG MORI AKTIENGESELLSCHAFT is (indirectly) controlled by DMG MORI COMPANY LIMITED. This release refers exclusively to DMG MORI AKTIENGESELL-SCHAFT. 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.

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Thank you for your attention!