DMG MORI AG

Quarterly Report • May 8, 2007

Interim Report

1st Quarter 2007

Dear Shareholders,

The worldwide demand for machine tools continues unabated at a high level. gildemeister made a successful start to the financial year 2007. Once again we were able to increase order intake, sales revenues and the results in the first quarter.

Order intake rose to € 416.1 million (+23%); sales revenues increased to € 320.3 million (+17%). The financial (previous year: € 2.2 million). The group reports an annual

gildemeister will continue its growth trend in the financial year 2007. We are expecting particular stimuli to come from the trade fair worldwide for machine tools. We henceforth want year. Taking the order backlog into account, we anticipate the entire year we anticipate a double-digit percentage increase in the dividend for the current financial year.

Key figures

The Interim Consolidated Financial Statements of gildemeister Aktiengesellschaft were prepared in accordance with the International Financial Reporting Standards (ifrs). The interim financial statements have not been audited.

gildemeister group	2007	2006		changes
	1st quarter	1st quarter		2007 against 2006
	€ m	€ m	€ m	%
Sales revenues
Total	320.3	274.1	46.2	17
Domestic	141.8	120.4	21.4	18
International	178.5	153.7	24.8	16
% International	56	56
Order intake
Total	416.1	339.2	76.9	23
Domestic	182.5	156.1	26.4	17
International	233.6	183.1	50.5	28
% International	56	54
Order backlog*
Total	542.6	397.8	144.8	36
Domestic	196.8	153.4	43.4	28
International	345.8	244.4	101.4	42
% International	64	61
Investments	6.8	4.3	2.5	58
Personnel costs	87.1	76.3	10.8	14
Employees	5,484	5,134	350	7
plus trainees	163	136	27	20
Total employees*	5,647	5,270	377	7
ebitda	24.1	18.1	6.0
ebit	16.4	10.4	6.0
ebt	8.7	2.2	6.5
Annual profit	4.8	1.1	3.7
* Reporting date 31 March

sales revenues in € million

Sales Revenues Order Intake ebit Employees

order intake in € million 2001 2002 2003 2004 2005 2006 1st quarter 2007 1,113.9 981.8 1,170.7 1,103.1 339.2 1,442.9 416.1 981.0

number of employees incl. trainees	Machine Tools Services Corporate Services
2001	3,530	1,644	60	5,234
2002	3,317	1,663	65	5,045
2003	3,242	1,717	69	5,028
2004	3,264	1,846	64	5,174
2005	3,270	1,935	67	5,272
31 mar. 2006	3,242	1,958	70	5,270
2006	3,357		2,126	75 5,558
31 mar. 2007	3,412		2,158	77 5,647

33	Key figures
3 2	Overall Economic Development
3 3	Development of the Machine Tool Industry
3 4 - 14	Business Development of the gildemeister group
4	Sales Revenues
5	Order Intake
6	Order Backlog
7	Results of Operations, Net Worth and Financial Position
8	Investments
9	Segments
	9 "Machine Tools"
	"Services" 11
	"Corporate Services" 12
13	gildemeister Share
14	Research and Development
14	Employees
3 15	Forecast 2007
3 16 - 22	Interim Consolidated Financial Statements of
	gildemeister Aktiengesellschaft as at 31 March 2007

• 16 Consolidated Income Statement
• 17 Consolidated Balance Sheet
• 18 Consolidated Cash Flow Statement
• 19 Statement of Changes in Group Equity
• 20 Consolidated Segmental Reporting
• 21 Notes to the Interim Consolidated Financial Statements

23 Financial Calendar

cover picture

Workpiece: injection mould made of tool steel completely machined in 45 hours on the dmc 105 v linear vertical machining centre with high-dynamic high-speed cutting with acceleration of up to 90 m/min and 2g on all axes.

Technological application: or example for Bobbycars from the big toy manufacturers.

1

Overall economic development continued its upwards trend in the first three months of the current year. This applies in particular to Asia, where the economic boom in Japan continues and China's high rate of growth remains unchanged. The us economy remains steady. In Germany a continued economic revival was noticeable. According to provisional calculations of the German Economic Research Institute (diw), gross domestic product increased by 0.5% compared to the previous quarter.

For the international business of gildemeister, the us dollar, the Japanese yen and the Chinese yuan are of particular importance. The foreign exchange rate of the currencies most important for us changed in the first quarter as follows: the euro started the year on 2 January 2007 at 1.33 us dollars and reached its lowest value of 1.29 us dollars on 12 January. The euro reached its highest value of 1.34 us dollars on 29 March. The average value of the euro of 1.31 us dollars in the first quarter was higher than the previous year's value of 1.20 us dollars. In comparison with the Chinese yuan, the euro initially lost value but gradually regained in value from the beginning of February. At the end of the first quarter the exchange rate was 10.30 yuan (30 March 2007). In comparison with the yen, the euro's development was marked by an increase in the key interest rate in Japan.

In January and February the value initially fluctuated around 157.80 yen. Following an increase in the key interest rate, the euro reached its highest value of 159.35 yen on 23 February 2007. It fell on 5 March to 150.93 yen and at the end of the quarter stood at 157.32 yen (30 March 2007). The average rate of exchange was 156.43 yen (previous year's quarter: 140.51 yen).

Sources: German Economic Research Institute (DIW), Berlin Economic Research Institute (ifo), Munich Institute for World Economics (IfW), Kiel

The worldwide market for machine tools will continue to develop positively in 2007. In their latest study (dated May 2007), the German Machine Tool Builders' Association (vdw) and the ifo Institute are expecting global consumption, and thus the concomitant global production, to both increase by 8% to € 51.2 billion.

The German machine tool industry is expected to develop somewhat more strongly in comparison with the world market. The vdw and the ifo Institute expect production growth of 13% and a 10% increase in consumption, especially in view of the emo taking place in Hanover in the autumn. At the start of the year order intake was higher than the comparative value of the previous year. At the same time both domestic and international orders increased.

The ifo business climate for trade and industry reflected this optimistic mood as did the positive indicators for the main consumer sectors for machine tools.

Source: vdw (German Machine Tool Builders' Association)

Economic Development

⁴ Business Development of the gildemeister group

gildemeister Aktiengesellschaft Bielefeld	Product plants Turning			Product plants Milling
	gildemeister Drehmaschinen GmbH Bielefeld	graziano Tortona S.r.l. Tortona	gildemeister Italiana S.p.A. Bergamo	deckel maho Pfronten GmbH Pfronten, Geretsried	deckel maho Seebach GmbH Seebach, Geretsried

The gildemeister group including gildemeister Aktiengesellschaft comprised 67 enterprises as at 31 March 2007. The consolidated group has increased by two enterprises compared to 31 December 2006. In March, dmg Europe Holding GmbH founded dmg Hungary Kft, with its registered place of business in Budapest, Hungary, to strengthen its sales and services activities. dmg America Inc. founded dmg Charlotte llc. with its registered place of business in Charlotte, usa.

Sales Revenues

In the first quarter, sales revenues reached € 320.3 million and were thus 17% above the previous year's level (€ 274.1 million). Domestic sales revenues rose by 18% to € 141.8 million. International sales revenues increased by 16% to € 178.5 million. The export share amounted to 56% (previous year's quarter: 56%).

sales revenues gildemeister group in € million				Domestic International
1st Quarter 2006	120.4	153.7	274.1
1st Quarter 2007	141.8		178.5	320.3

More detailed information on sales revenues in each segment can be found starting on page 9.

Taking the order backlog into account, we anticipate achieving sales revenues of more than € 1,370 million for the entire year.

Würzburg

Product plants Ultrasonic / Lasertec	Product plants		Sales and Service Organisation
sauer GmbH Idar-Oberstein, Kempten	famot Pleszew s.a. Pleszew	deckel maho gildemeister (Shanghai) Machine Tools Co., Ltd. Shanghai	dmg Vertriebs und Service GmbH Bielefeld
			63 sales and service locations worldwide
			dmg microset GmbH Bielefeld
			saco S.p.A. Castelleone
			a & f Stahl- und Maschinenbau GmbH

Order Intake

In the first quarter order intake rose by 23% to € 416.1 million (previous year: € 339.2 million). Domestic orders increased by 17% to € 182.5 million (previous year's quarter: € 156.1 million). International orders rose 28% to € 233.6 million (previous year's quarter: € 183.1 million). International orders thus accounted for 56% of orders (previous year's quarter: 54%).

Order intake in the first quarter was above our expectations. In addition to the successful in-house exhibitions in Pfronten and Seebach, good international development also played an important part in increased order intake. At 15 international spring trade fairs and in-house exhibitions, including the imtex in Bangalore, the tecma in Mexico City and the Intermold in Seoul, we were able to achieve order intake that exceeded our planned targets. Furthermore, our service concept once again contributed to the increase in order intake.

order intake gildemeister group in € million					Domestic International
1st Quarter 2006	156.1	183.1	339.2
1st Quarter 2007	182.5			233.6	416.1

More detailed information on order intake for each segment can be found starting on page 10.

In the individual market regions, order intake developed as follows:

The good order intake in the first quarter was due to an increase in demand in the German market, as well as in the other European markets and in the Asian markets. In the third quarter we are expecting more moderate order intake in the run-up to the emo. Taking this development into consideration, we now want to achieve order intake for the whole year of more than € 1.5 billion.

Order Backlog

As at 31 March 2007 the order backlog within the group amounted to € 542.6 million. Of the orders on hand, international orders accounted for 64% (corresponding date of the previous year: 61%). In a year-on-year comparison, the backlog of international orders increased by € 101.4 million (+42%) to € 345.8 million. The backlog of domestic orders rose by € 43.4 million (+28%) to € 196.8 million.

in € million	order backlog gildemeister group		Domestic International
31 march 2006	153.4	244.4	397.8
31 march 2007	196.8		345.8 542.6

The order backlog signifies production capacity utilisation of around five months and thus ensures good basic utilisation for the current financial year.

Results of Operations, Net Worth and Financial Position

The financial results showed positive development in the first quarter and once again were higher than the corresponding results in the previous year. ebitda reached € 24.1 million (previous year: € 18.1 million), ebit amounted to € 16.4 million (previous year: € 10.4 million). ebt rose to € 8.7 million (previous year: € 2.2 million). gildemeister reports an annual profit after taxes of € 4.8 million (previous year: € 1.1 million).

Total work done increased by 17.2% to € 346.7 million (previous year: € 295.9 million). The materials quota amounted to 52.3% (previous year: 54.2%); this corresponds to a cost of materials of € 181.2 million (previous year: € 160.4 million). Gross profit increased by € 30.0 million to € 165.5 million (previous year: € 135.5 million). The gross profit margin of 47.7% is 1.9 percentage points above the previous year's level (45.8%). The personnel expenditure quota amounted to 25.1% (previous year: 25.8%). Personnel expenditure amounted to € 87.1 million (previous year: € 76.3 million). The balance of other expenses and income rose to € 54.3 million due to the increase in sales volume (previous year: € 41.1 million). Depreciation corresponds to the previous year's level at € 7.7 million. The financial result of € -7.7 million was below the level of the previous year (€ -8.2 million). Due to the higher ebt, tax expenditure rose to € 3.9 million (previous year: € 1.1 million).

	31 mar. 2007	31 dec. 2006	31 mar. 2006
	€ m	€ m	€ m
Net worth
Fixed assets	264.2	265.5	259.6
Current assets	713.3	689.4	704.1
Equity	294.3	288.6	268.4
Outside capital	683.2	666.3	695.3
Balance sheet total	977.5	954.9	963.7

The balance sheet total as at 31 March 2007 increased by € 22.6 million to € 977.5 million in comparison with the annual balance sheet for 2006. On the assets side, a reduction in fixed assets of € 1.3 million is offset by an increase in current assets of € 23.9 million. Under current assets, inventories increased by € 41.6 million to € 334.6 million, whilst trade receivables decreased by € 13.0 million to € 240.3 million. The increase in inventories in the first quarter is due to increased material procurement of raw materials and consumables to secure suppliers, as well as to a higher level of initial processing of unfinished goods and an increase in finished goods in stock, which is especially due to the planned increase in sales revenues for the financial year 2007. On the liabilities side, outside capital rose by € 16.9 million to € 683.2 million. At the same time liabilities rose by € 26.8 million and payments on account for orders by € 14.9 million. Trade payables decreased by € 20.7 million to € 110.2 million.

The free cash flow was still negative in the first quarter at € 41.9 million (previous year: € -26.8 million). Cash flow from current operations amounted to € -35.4 million in the first quarter (previous year's quarter: € -22.9 million). Positive contributions to cash flow development came from earnings before tax (ebt) of € 8.7 million, depreciation of € 7.7 million and from a reduction in trade receivables of € 13.4 million. The € 41.1 million increase in medium-term funds committed to inventories and a reduction in trade accounts payable of € 20.5 million had a negative effect on the cash flow. Cash flow from investment activity amounted to € -6.5 million (previous year: € -3.9 million). Cash flow from financing activity of € 27.7 million (previous year: € 21.7 million) results from a change in financial liabilities. We expect a free cash flow of more than € 40 million for the entire year.

	2007 1st quarter	2006 1st quarter
	€ m	€ m
Financial position
Cash flow from current operations	-35.4	-22.9
Cash flow from investment activity	-6.5	-3.9
Cash flow from financing activity	27.7	21.7
Changes in cash and cash equivalents	-14.3	-4.8
Liquid funds as of 1 January	42.2	21.9
Liquid funds as of 31 March	27.9	17.1

Investments

In the first quarter, investments were made according to plan and amounted to € 6.8 million (previous year: € 4.3 million). Overall gildemeister effected 15% of the planned investments (€ 45 million) for the current financial year in the first three months. In view of this year's emo, the main investment focus was placed on investment in capitalised development costs for new types of machine, as well as in machine tools, models and measuring fixtures. Furthermore, investments were made in new infrastructure measures to allow capacity adjustments in production and logistics processes.

Segments

"Machine Tools"

The "Machine Tools" segment includes the group's new machines business. It comprises the turning, milling, ultrasonic and laser divisions. We have combined our development and technology expertise in five product plants.

key figures	2007	2006		changes
"machine tools" segment	1st quarter € m	1st quarter € m	€ m	2007 against 2006 %
Sales revenues
Total	214.2	183.5	30.7	17
Domestic	88.1	71.9	16.2	23
International	126.1	111.6	14.5	13
% International	59	61
Order Intake
Total	298.9	239.2	59.7	25
Domestic	124.1	101.1	23.0	23
International	174.8	138.1	36.7	27
% International	58	58
Order Backlog*
Total	475.3	355.5	119.8	34
Domestic	155.2	119.0	36.2	30
International	320.1	236.5	83.6	35
% International	67	67
Investments	4.9	2.9	2.0	69
Employees	3,249	3,106	143	5
plus trainees	163	136	27	20
Total employees*	3,412	3,242	170	5
ebit	8.2	2.8	5.4
* Reporting date 31 March

Sales revenues in the reporting period amounted to € 214.2 million and were € 30.7 million or 17% above the previous year's level (€ 183.5 million). The "Machine Tools" segment accounted for 67% of group sales revenues (previous year: 67%). The deckel maho milling technology contributed 44% (previous year's quarter: 43%). gildemeister's turning technology contributed 22% (previous year's quarter: 22%). The new ultrasonic and laser technologies contributed 1% (previous year's quarter: 2%). Financial Calendar

In relation to the sales revenues of the group, the "Machine Tools", "Services" and "Corporate Services" segments contributed as follows:

In the "Machine Tools" segment, order intake increased by € 59.7 million or 25% to € 298.9 million (previous year's quarter: € 239.2 million). "Machine Tools" thus accounted for 72% of all order intake in the group (previous year's quarter 71%). Our product innovations have been well received by the market. In connection with targeted marketing measures, well attended trade fairs and the dmg in-house exhibitions, our new products have contributed significantly to the higher order intake.

As at 31 March 2007 the order backlog within the group amounted to € 475.3 million (previous year: € 355.5 million). In the first three months of the year, gildemeister achieved an ebit of € 8.2 million in the "Machine Tools" segment (previous year: € 2.8 million).

"Services"

The "Services" segment mainly includes the business activities of dmg Vertriebs und Service GmbH and its subsidiaries. dmg Service Solutions offers worldwide customised service solutions and service products over the entire lifespan of the dmg machine tools. The Service Solutions include various services provided by our highly-qualified service staff, whose worldwide network ensures direct customer contact and rapid availability. Service Products – such as spare parts, dmg powertools, saco components, as well as calibration devices and tool management from microset – enable the user to further increase the productivity of his dmg machine tools. Up-to-date service news may be obtained at www.gildemeister.com.

key figures	2007	2006		changes
"services" segment	1st quarter € m	1st quarter € m	€ m	2007 against 2006 %
Sales revenues
Total	106.0	90.5	15.5	17
Domestic	53.6	48.5	5.1	11
International	52.4	42.0	10.4	25
% International	49	46
Order Intake
Total	117.1	99.9	17.2	17
Domestic	58.3	54.9	3.4	6
International	58.8	45.0	13.8	31
% International	50	45
Order backlog*
Total	67.3	42.3	25.0	59
Domestic	41.6	34.4	7.2	21
International	25.7	7.9	17.8	227
% International	38	19
Investments	1.2	1.1	0.1	9
Employees*	2,158	1,958	200	10
ebit	13.1	11.2	1.9
* Reporting date 31 March

Demand for highly-qualified services continued to grow. Sales revenues reached € 106.0 million and were thus 17% above the previous year's quarter (€ 90.5 million). "Services" accounted for 33% of group sales revenues (previous year: 33%). Order intake increased to € 117.1 million (previous year: € 99.9 million). "Services" thus accounted for 28% of all order intake (previous year's quarter: 29%). The order backlog amounted to € 67.3 million. ebit amounted to € 13.1 million (previous year: € 11.2 million). The income position improved according to plan with the development in sales.

key figures "corporate service" segment	2007 1st quarter € m	2006 1st quarter € m	changes 2007 against 2006 € m
Sales revenues	0.1	0.1	0.0
Order intake	0.1	0.1	0.0
Investments	0.7	0.3	0.4
Employees*	77	70	7
ebit**	-4.7	-3.7	-1.0

"Corporate Services"

* Reporting date 31 March

** Previous year's figures adjusted as to reporting of transaction costs

The "Corporate Services" segment essentially comprises gildemeister Aktiengesellschaft with its group-wide holding function. ebit amounted to € -4.7 million (previous year: € -3.7 million).

gildemeister Share

Once again the gildemeister share developed better than the entire market. Starting from a price of € 9.84 on the first day of trading in 2007, the share closed at € 12.82 at the end of the first quarter. This represents a share price increase of 30%. In comparison, the sdax rose 8%. Currently the share price is quoted at € 15.61 (4 May 2007). Research studies may be found in the Internet or may be requested from our investor relations team.

The gildemeister shares are held in free float. Based on a total number of 43.3 million shares, the shares were transferred 0.4 times (previous year: 0.3 times). The shareholder structure changed in the first quarter as follows: The Governance for Owners llp, London, Great Britain, and jp Morgan Chase & Co., New York, usa – assigned through its subsidiaries – have exceeded the threshold of 3% of the voting rights in gildemeister Aktiengesellschaft.

Your contact to the gildemeister Investor and Public Relations Team:

gildemeister Aktiengesellschaft
Gildemeisterstraße 60
d-33689 Bielefeld
Phone: + 49 (0) 52 05 / 74 - 3001 Tanja Figge 
         + 49 (0) 52 05 / 74 - 3028 André Danks 
Telefax: + 49 (0) 52 05 / 74 - 3273
Internet: www.gildemeister.com 
E-Mail: ir@gildemeister.com

Research and Development

Expenditure on research and development amounted to € 11.3 million in the first three months and was thus above the level of the previous year (€ 10.2 million). There are currently 435 employees working on the development of new products (13% of the workforce at the plants). At the traditional in-house exhibition in Pfronten, we presented the dmc 55 h duoblock® and the hsc 20 linear, which are just two of the 17 new innovations planned in total for the reporting year. With the dmu 70 eVo linear we presented a third innovation at the in-house exhibition in Seebach. Our activities are focused in particular on the emo as the most important trade fair worldwide for machine tools. With a total of 11 world premieres, the majority of our innovations are aimed at the industry highlight in September. gildemeister Drehmaschinen GmbH will present the 5th generation of the ctx model range; modern electronics and high-performance controls with optimum precision, dynamics and ease of use increase user benefits.

In accordance with our innovations-focused product strategy, we will continue to present new innovations over the course of the year at the major national and international trade fairs for the industry and at our dmg in-house exhibitions.

Workpiece or the automotive industry: oil pump casing of high quality annealed steel.

The new dmc 55 h duoblock® from deckel maho Pfronten enables the economic and precise machining of oil pump casings. This compact horizontal machining centre increases customer benefits and productivity through high precision and flexibility.

Employees

As of 31 March 2007, gildemeister had 5,647 employees, of whom 163 were trainees (31 Dec. 2006: 5,558). In comparison with year-end 2006, the number of employees has risen by 89.

At the end of the first quarter, 3,355 employees (59%) worked for the national companies and 2,292 employees (41%) for our international companies. Personnel expenditure amounted to € 87.1 million (previous year's quarter: € 76.3 million). The personal expenditure quota of personnel costs amounted to 25.1% (previous year's quarter: 25.8%).

Forecast 2007

The world economy will continue at its high rate of growth in the current year. China and the usa remain the main motors driving the economy. However, there is growing stimulus coming from Japan and the European Union. The upturn in the German economy has stabilised.

The worldwide market for machine tools will continue to develop positively in 2007. The forecast of the ifo Institute and the German Machine Tool Builders' Association (vdw) anticipates a growth in global consumption of 8% to € 51.2 billion. This estimate is based on the positive outlook for the major Asian markets, such as China and India, as well as for the European markets. In Germany, economic experts are anticipating an increase in consumption of 13%, especially in view of the emo, which is taking place in Hanover in the autumn. A 9% increase in German exports is expected and domestic sales should increase by 12%.

	machine tools production in germany in € billion			Export Domestic sales
2006		7.1	3.0 10.1
2007		7.7	3.4	11.1 (estimate)

gildemeister will continue its growth trend in the financial year 2007. We intend to expand our global presence by developing future sales markets, in particular those in the growing eastern European national economies such as Russia, Hungary, Bulgaria, Romania and Slovenia. We will increase our service capacity worldwide and further strengthen our customer ties. Furthermore, we plan to expand our "Advanced Technologies". In addition to ultrasonic and laser technology, we intend to strengthen our market presence as a supplier of alternative energy solutions.

We are expecting the international trade fairs to provide strong stimuli. The most important trade fair in Asia took place from 9 to 15 April in Peking. gildemeister presented twelve exhibits at the cimt to considerable success. In 2007 we will present our innovative product lines to our customers worldwide at 59 trade fairs and in-house exhibitions. The year 2007 is marked for gildemeister by the emo, which takes place from 17 to 22 September in Hanover. This trade fair plays an important trend-setting role for the industry and its customers. gildemeister will present more than 60 exhibits in Hanover, 11 of which will be world innovations.

Based on our good results in the first quarter and our ongoing planning, we now intend to achieve order intake of more than € 1.5 billion for the financial year 2007. Taking the order backlog into account, we anticipate achieving sales revenues of more than € 1,370 million. For the entire year we anticipate a double-digit percentage increase in ebt and in the annual profit. We plan a further increase in the dividend for the current financial year.

15

¹⁶ Interim Consolidated Financial Statements of gildemeister Aktiengesellschaft as at 31 March 2007

Consolidated Income Statement

		2007		2006*		changes
		1 jan. - 31. mar.		1 jan. - 31 mar.		2007 against 2006
	€ m	%	€ m	%	€ m	%
Sales revenues	320.3	92.4	274.1	92.6	46.2	16.9
Changes in stocks of finished
goods and work in progress	25.1	7.2	20.7	7.0	4.4	21.3
Capitalised payments	1.3	0.4	1.1	0.4	0.2	18.2
Total work done	346.7	100.0	295.9	100.0	50.8	17.2
Cost of materials	-181.2	-52.3	-160.4	-54.2	-20.8	13.0
Gross profit	165.5	47.7	135.5	45.8	30.0	22.1
Personnel expenditure	-87.1	-25.1	-76.3	-25.8	-10.8	14.2
Other expenses and income	-54.3	-15.7	-41.1*	-13.9	-13.2	32.1
Depreciation	-7.7	-2.2	-7.7	-2.6	0.0	0.0
Financial result	-7.7	-2.2	-8.2*	-2.7	0.5	6.1
ebt	8.7	2.5	2.2	0.8	6.5
Tax on income and earnings	-3.9	-1.1	-1.1	-0.4	-2.8
Annual profit	4.8	1.4	1.1	0.4	3.7

Earnings per share acc. to ias 33 in €	0.11	0.02
* Previous year's figures adjusted as to reporting of transaction costs

Consolidated Balance Sheet

assets	31 mar. 2007	31 dec. 2006	31 mar. 2006
	€ m	€ m	€ m
Long-term assets
Intangible assets	96.5	97.4	100.3
of which goodwill	70.5	70.6	68.9
Tangible assets	167.5	167.9	159.1
Financial assets	0.2	0.2	0.2
Trade debtors	0.1	0.8	1.1
Other long-term assets	18.9	18.5	9.2
Deferred taxes	32.9	31.4	32.0
	316.1	316.2	301.9
Short-term assets
Inventories	334.6	293.0	316.5
Trade debtors	240.2	252.5	260.8
Other short-term assets	57.6	49.9	67.4
Cash and securities	27.9	42.2	17.1
Long-term assets held for sale	1.1	1.1	0.0
	661.4	638.7	661.8
	977.5	954.9	963.7

equity and liabilities	31 mar. 2007	31 dec. 2006	31 mar. 2006
	€ m	€ m	€ m
Equity
Subscribed capital	112.6	112.6	112.6
Capital provisions	68.3	68.3	68.3
Revenue provisions	113.8	108.1	87.5
Minority interests	-0.4	-0.4	0.0
	294.3	288.6	268.4
Long-term liabilities
Long-term financial liabilities	250.0	226.6	287.0
Pension provisions	27.9	28.0	27.7
Other long-term provisions	23.1	23.6	20.2
Trade creditors	0.6	0.7	1.0
Other long-term liabilities	6.3	8.8	6.5
Deferred taxes	7.3	9.7	10.9
	315.2	297.4	353.3
Short-term liabilities
Short-term financial liabilities	35.6	32.2	44.3
Other short-term provisions	124.3	114.7	84.3
Payments received on account	69.9	55.0	43.5
Trade creditors	109.6	130.2	122.4
Liabilities from bills of exchange	0.2	0.1	20.4
Other short-term liabilities	28.4	36.7	27.1
	368.0	368.9	342.0
	977.5	954.9	963.7

Consolidated Cash Flow Statement

	2007 1 jan. - 31 mar. € m	2006 1 jan. - 31 mar. € m
cash flow from current operations
Earnings before taxes (ebt)	8.7	2.2
Taxes on profit	-3.9	-1.1
Depreciation of assets	7.7	7.7
Changes in deferred taxes	-3.9	-1.4
Changes in long-term provisions	-0.5	-2.1
Other non-cash expenses and income	0.4	0.6
Changes in short-term provisions	9.6	8.6
Changes in inventories, trade debtors and other assets	-37.1	-6.7
Changes in trade payables and other liabilities	-16.4	-30.7
	-35.4	-22.9
cash flow from investment activity
Amounts paid out for investments in intangible and tangible assets	-6.8	-4.3
Amounts received from the disposal of fixed assets	0.3	0.4
	-6.5	-3.9
cash flow from financing activity
Amounts received from raising (financing) credits	27.7	21.7
Distribution of dividends to shareholders	0.0	0.0
	27.7	21.7
Changes affecting payments	-14.2	-5.1
Consolidation and exchange rate related changes not affecting payments	-0.1	0.3
Liquid funds as at 1 January	42.2	21.9
Liquid funds as at 31 March	27.9	17.1

Statement of Changes in Group Equity

As at 31 March 2007	112.6	68.3	113.8	-0.4	294.3
other changes	0.0	0.0	0.0	0.0	0.0
Consolidation transactions /
market value of derivatives	0.0	0.0	0.9	0.0	0.9
Changes in currency / Changes in
Annual profit	0.0	0.0	4.8	0.0	4.8
As at 1 January 2007	112.6	68.3	108.1	-0.4	288.6
	€ m	€ m	€ m	€ m	€ m
	subscribed capital	capital provisions	revenue provisions	minority interests	group equity

As at 31 March 2006	112.6	68.3	87.5	0.0	268.4
other changes	0.0	0.0	0.0	0.0	0.0
Consolidation transactions /
market value of derivatives	0.0	0.0	1.5	0.0	1.5
Changes in currency / Changes in
Annual profit	0.0	0.0	1.0	0.1	1.1
As at 1 January 2006	112.6	68.3	85.0	-0.1	265.8
	€ m	€ m	€ m	€ m	€ m
	capital	provisions	provisions	interests	equity
	subscribed	capital	revenue	minority	group

Consolidated Segmental Reporting

1st quarter 2007	machine		corporate
	tools	services	services	transitions	group
	€ m	€ m	€ m	€ m	€ m
Sales revenues	214.2	106.0	0.1		320.3
ebit	8.2	13.1	-4.7	-0.2	16.4
Investments	4.9	1.2	0.7		6.8
Employees	3,412	2,158	77		5,647

1st quarter 2006	machine		corporate
	tools	services	services	transitions	group
	€ m	€ m	€ m	€ m	€ m
Sales revenues	183.5	90.5	0.1		274.1
ebit*	2.8	11.2	-3.7	0.1	10.4
Investments	2.9	1.1	0.3		4.3
Employees	3,242	1,958	70		5,270

* Previous year's figures adjusted as to reporting of transaction costs

Notes to the Interim Consolidated Financial Statements

1 application of regulations

The Interim Consolidated Financial Statements of gildemeister Aktiengesellschaft as at 31 March 2007 were prepared, as were the Consolidated Financial Statements of the year ending 31 December 2006, in accordance with the International Financial Reporting Standards (ifrs) applicable on the reporting date and in accordance with the interpretation of the above standards. In particular, the regulations of the ias 34 on interim reporting were applied.

All Interim Financial Statements of those companies that were included in the Interim Consolidated Financial Statements were prepared in accordance with uniform accounting and valuation principles that also formed the basis for the Consolidated Annual Financial Statements for the year ending 31 December 2006.

Bearing in mind the sense and purpose of interim reporting as an instrument of information based on the Consolidated Financial Statements, and in accordance with ias 1.103, we refer to the Notes to the Consolidated Annual Financial Statements. These set out in detail the accounting, valuation and consolidation methods applied and the exercising of selection rights according to ifrs.

In the interests of a more precise presentation of costs, gildemeister has made a change to the information presented in the Income Statement. Expenses from the amortisation of transaction costs for the corporate bond issue and the syndicated loan facility, which were previously reported in other operational costs, are now accounted for in the financial results as was the case in the consolidated financial statements as at 31 December 2006. As at 31 March 2006, transaction costs in the amount of € 622 k and as at 31 March 2007 an amount of € 427 k were reported in the financial results.

The accounting and valuation principles and applied consolidation methods remain unchanged from the financial year 2006. Since 1 January 2007, new standards and interpretations of the ifrs accounting rules have come into force, which were obligatorily applied to the present Consolidated Annual Financial Statements. For further details we refer to the Notes to the Consolidated Financial Statements of the year ending 31 December 2006.

As at 31 March 2007, the gildemeister group comprised 67 companies, including gildemeister Aktiengesellschaft, 66 of which were included in the Interim Financial Statements as part of the full consolidation process. The changes are commented on in the "Business Development" section. The changes do not impair comparison with the Consolidated Annual Financial Statements for the year ending 31 December 2006. 2 consolidated group

In accordance with ias 33, earnings per share are determined by dividing the consolidated earnings by the average number of shares. 3 earnings per share

€ 4.821 k
43.302.503
€ 0,11

Interim Consolidated Financial Statements of gildemeister Aktiengesellschaft as at 31 March 2007 22

4 consolidated income	Details on the income statement. the balance sheet and on the cash flow statements
statement, balance sheet,	may be found in the "Results of Operations, Net Worth and Financial Position" section.
cash flow statement
5 statement of changes	The consolidated annual profit as at 31 March 2007 of € 4.8 million had a positive
in group equity	effect on equity. In addition, the balance from currency translations (€ 1.0 million)
	directly recognised in equity and the change in market valuation of derivative financial
	instruments (€ -0.1 million) increased equity.
6 consolidated	No changes have occurred in the delimitation of segments or in the determination of
segmental reporting	results achieved by each segment compared with 31 December 2006. Further details
	on the course of business are included in the "Segments" section.
7 events occurring after	No material events have occurred since the date of the Interim Financial Statements.
the balance sheet date

25 may 2007	General Meeting of Shareholders
	at 10 am in the Town Hall Bielefeld
29 may 2007	Distribution of dividend
2 august 2007	2nd Quarterly Report 2007
	(1 April to 30 June)
7 november 2007	3rd Quarterly Report 2007
	(1 July to 30 September)
12 february 2008	Press release on provisional figures
	for the financial year 2007
16 may 2008	General Meeting of Shareholders
	at 10 am in the Town Hall Bielefeld

Subject to alteration

Bielefeld, 8 May 2007 Yours sincerely

gildemeister Aktiengesellschaft The Executive Board

Supervisory Board: Hans Henning Offen, Chairman Gerhard Dirr, Deputy Chairman Executive Board: Dipl.-Kfm. Dr. Rüdiger Kapitza, Chairman Dipl.-Ing. Günter Bachmann Dipl.-Kfm. Dr. Thorsten Schmidt Dipl.-Kfm. Michael Welt

23

Statements relating to the future

This report contains statements relating to the future, which are based on current estimates by the management regarding future developments. Such statements are subject to risks and uncertainties and as such it is impracticable for gildemeister to carry out a check or make a precise estimate, such as for the future market environment and the general economic conditions, the conduct of market participants, the successful integration of new acquisitions and the realisation of expected synergy effects as well as measures by state agencies. Should one of these factors of uncertainty and incalculability occur, or should the assumptions on which these statements are based turn out to be incorrect, the actual results may deviate significantly from the results explicitly stated or implicitly included in these statements. gildemeister neither intends nor assumes a separate obligation to update statements relating to the future in order to adapt them to events or developments occurring after the date of this report. Statements relating to the future must not be understood as a warranty or assurance of the developments or events stated therein.

This report is available in German and English. Both language versions are also available in the Internet for downloading at www.gildemeister.com. Further copies and additional informative literature on gildemeister are available free of charge upon request.

gildemeister Aktiengesellschaft Gildemeisterstraße 60 d-33689 Bielefeld Local Court of Bielefeld hrb 7144 Phone: +49 (0) 52 05 / 74-3001 Fax: +49 (0) 52 05 / 74-3081 Internet: www.gildemeister.com E-Mail: info@gildemeister.com

Forecast 2007	Business	Economic
	Development	Development

E-Mail: info@gildemeister.com