creating the future. forming real value.

Dear shareholders,

at the present time the world economy is relatively stable, nevertheless, there is growing uncertainty in the eurozone as additional countries have recently needed funds from the European rescue package. For machine tool consumption in 2012, the vdw (German Machine Tool Builders' Association) and Oxford Economics are still forecasting (as at April 2012) worldwide growth of 8.8%.

gildemeister was once again able to furthter increase order intake, sales revenues and income in the second quarter. Order intake rose at the end of the first six months to € 1,188.4 million (+22%; previous year: € 971.6 million). Sales revenues reached € 916.8 million (+18%; previous year: € 774.6 million); the order backlog surpassed the billion mark. ebitda amounted to € 64.7 million (previous year: € 47.6 million), ebit reached € 45.4 million (previous year: € 32.5 million) and ebt rose to € 38.2 million (previous year: € 2.1 million). As at 30 June 2012, the group reports earnings after taxes of € 26.2 million (previous year: € 1.5 million).

Statements on future business performance will become more volatile. Order intake in the third quarter will be more restrained due to seasonal factors. In the second half of the year we are generally planning to continue our good performance. We expect stimulus to come from the international autumn trade fairs starting in September – the imts in Chicago, the amb in Stuttgart, the bimu in Milan and the jimtof in Tokyo.

The Asian markets, America and the Eastern European markets are persistently developing positively. Willingness to invest is continuing to decline in the Southern European markets as a consequence of the euro debt crisis.

We are continuing to push ahead with our cooperation with Mori Seiki. We are in line with plans and we are making increasing use of synergy potentials. At the intersolar in Munich, we presented the strategic new focus of gildemeister energy solutions for the first time.

gildemeister confirms its forecasts for 2012: In the current financial year we are expecting order intake for the first time of more than € 2 billion. We are planning sales revenues of more than € 1.9 billion and for the whole year we intend to achieve ebt of more than € 100 million as well as net income for the year of more than € 65 million. This planning is based on current market forecasts and does not take account of the euro debt crisis spreading any further. Due to the positive outlook for business and earnings, we plan to distribute a higher dividend per share for financial year 2012 than in the previous year.

Key Figures

The Interim Consolidated Financial Statements of gildemeister Aktiengesellschaft were prepared in accordance with the International Financial Reporting Standards (ifrs), as they have to be applied within the European Union. The interim financial statements have not been audited.

01
gildemeister group					Changes 30 June 2012
	30 June 2012 € million	31 Dec. 2011 € million	30 June 2011 € million	€ million	to 30 June 2011 %
Sales revenues
Total	916.8	1,687.7	774.6	142.2	18
Domestic	368.1	632.6	271.9	96.2	35
International	548.7	1,055.1	502.7	46.0	9
% International	60	63	65
Order intake
Total	1,188.4	1,927.3	971.6	216.8	22
Domestic	396.5	764.2	376.8	19.7	5
International	791.9	1.163.1	594.8	197.1	33
% International	67	60	61
Order backlog
Total	1,079.9	811.2	769.1	310.8	40
Domestic	266.0	237.6	210.7	55.3	26
International	813.9	573.6	558.4	255.5	46
% International	75	71	73
Investments	27.1	89.7*	30.9	– 3.8	– 12
Personnel costs	219.8	384.7	188.0	31.8	17
Personnel ratio in %	22.9	22.1	23.2
ebitda	64.7	146.1	47.6	17.1	36
ebit	45.4	112.5	32.5	12.9	40
ebt	38.2	66.9	2.1	36.1
Earnings after taxes	26.2	45.5	1.5	24.7
* of which € 14.8 million capital inflow to financial assets

	30 June 2012	31 Dec. 2011	30 June 2011		Changes 30 June 2012 to 31 Dec. 2011 %
Employees	6,215	5,810	5,528	405	7
plus trainees	163	222	182	– 59	– 27
Total employees	6,378	6,032	5,710	346	6

02 sales revenues in € million

2006	1,442.9
2007		1,864.8
2008		1,882.0
2009	1,145.9
2010	1,418.4
2011	971.6 955.7	1,927.3
First six months 2012	1,188.4

04
ebit in € million
2006			82.5
2007				125.9
2008					158.2
2009		31.8
2010		45.0
2011	32.5		80.0	112.5
First six months 2012		45.4

05
number of employees incl. trainees			"Machine Tools" "Industrial Services" "Corporate Services"
2006	3,357	2,126	75 5,558
2007	3,609		2,307 82 5,998
2008	3,769		2,587 95 6,451
2009	3,208	2,179	63 5,450
2010	3,097	2,280	68 5,445
First six months 2011	3,271	2,368	71 5,710
2011	3,397		2,564 71 6,032
First six months 2012	3,458		2,843 77 6,378

gildemeister group Key Figures

Sales Revenues Order Intake ebit Employees

<<	Key Figures
2	Overall Economic Development
3	Development of the Machine Tool Industry

4 – 16	Business Development of the gildemeister group	Development Economic
4	Sales Revenues
5	Order Intake
6	Order Backlog
7	Results of Operations, Net Worth and Financial Position
9	Investments
10	Segmental Reporting
	"Machine Tools" 11	Business
	"Industrial Services" 12	Development
	"Corporate Services" 14
15	Employees
15	gildemeister Share
16	Research and Development

17	Opportunities and Risk Management Report
		Opportunities and
18	Forecast
19	Future Business Development	Risk Management Report
20 – 30	Interim Consolidated Financial Statements of
	gildemeister Aktiengesellschaft as at 30 June 2012
20	Consolidated Income Statement
21	Group Statement of Comprehensive Income
22	Consolidated Balance Sheet	Forecast
24	Consolidated Cash Flow Statement
25	Development of Group Equity
26	Group Segmental Reporting
27	Notes to the Interim Consolidated Financial Statements
30	Responsibility Statement

31	Additional information	Interim Consolidated Financial Statements
31	List of Tables and Charts
32	Financial Calendar

cover picture innovations for the aerospace industry.

High-performance components, for example for the aerospace industry, are produced worldwide on milling machines of gildemeister. The cover picture shows a compressor wheel for aircraft turbines, produced in six hours in full machining with 5-axis milling and turning on a dmu 80 fd duoblock®.

Additional information The global economic cycle was relatively stable in the first half year. Overall economic development continued to have a slight upwards trend. The economic momentum in China slowed down slightly; the main losses, however, occurred at a high level. In the usa the economy grew at a moderate pace. In Europe the economy was still restrained; development was burdened overall by the euro debt crises. In Germany the economy developed encouragingly robust. According to provisional calculations of the Deutsche Institut für Wirtschaftsforschung (diw – German Economic Research Institute), the diw economic barometer rose by 0.2% compared to the previous quarter.

gildemeister's international business is affected by the euro's exchange rate. Of particular importance are the us dollar, the Chinese renminbi and the Japanese yen. The euro lost in value against these currencies in the first half year of 2012 in comparison with the previous year's second quarter. Compared to the average value of the euro, the us dollar was usd 1.28 (previous year's quarter: usd 1.44) and thus the euro fell against the us dollar by 11%. The average value of the Chinese renminbi was 8.11 renminbi (previous year's quarter: 9.35 renminbi) and thus the euro fell against the renminbi by 13.3%. Customers in the usa and the dollar-dependent markets, as well as in China, can buy our European-manufactured products at more favourable prices due to the exchange rate trend. The average value of the yen rose against the euro by 12.6% and was quoted at 102.6 yen (previous year's quarter: 117.4 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 should develop at a relatively steady pace in 2012. Statistics from some national machine tool associations indicate a decline in order intake. The vdw (German Machine Tool Builders' Association) and Oxford Economics still anticipate growth in world consumption of 8.8% or € 67.4 billion. According to our estimates, consumption worldwide will be lower.

The German machine tool industry reports a drop of 14% in order intake for cutting machines in the first five months of the year. Sales revenues at German machine tool producers have risen by 21% in comparison with the previous year due to the high capacity utilisation.

The ifo business climate index indicates a restrained mood for most customer industries. The index has dropped sharply for the road vehicle construction industry, whereas the current situation in the machine tool building industry is still considered to be satisfactory. Future expectations, however, are being affected by persistent uncertainty in the eurozone.

Source: Oxford Economics, vdw (German Machine Tool Builders' Association)

⁴ Business Development of the gildemeister group

The gildemeister group including gildemeister Aktiengesellschaft comprised 124 entities as at 30 June 2012. This means that in comparison with 31 March, the number has increased by one company. In June, gildemeister Beteiligungen ag founded Ulyanovsk Machine Tools ooo, Ulyanovsk, Russia. This new company is to produce turning and milling machines from the ecoline series for the Russian market.

Sales Revenues

Sales revenues in the second quarter reached € 465.0 million (previous year: € 397.2 million). Sales revenues in the first half year of € 916.8 million surpassed the previous year's figure by 18% (previous year: € 774.6 million). More detailed information on each segment is given on page 10 et seq.

Domestic sales revenues increased by 35% to € 368.1 million; the group's international sales revenues rose by 9% to € 548.7 million. The export share amounted to 60% (previous year: 65%).

b . 02
in € million	sales revenues gildemeister group		Domestic International
First six month 2011	271,9	502,7	774,6
First six month 2012	368,1		548,7 916,8

dmg Vertriebs und Service GmbH deckel maho gildemeister Bielefeld

99 Sales and Service locations worldwide dmg / mori seiki Deutschland Stuttgart 8 Sales and Service locations dmg / mori seiki Europe Dübendorf (Switzerland) 34 Sales and Service locations dmg / mori seiki Asia Shanghai / Singapur 20 Sales and Service locations * These markets are served and consolidated by our cooperation partner, Mori Seiki. mori seiki Asien / Australien* 4 Locations dmg / mori seiki America Itasca (Illinois) 3 Sales and Service locations mori seiki usa* 10 Locations dmg / mori seiki Services Bielefeld, Pfronten 13 Sales and Service locations worldwide a+ f GmbH Würzburg 7 Sales and Service locations

Order Intake

Order intake rose in the second quarter by 11% to € 583.3 million (previous year: € 525.7 million). In the "Machine Tools" segment, orders reached € 312.3 million. In "Industrial Services" we were able to increase order intake markedly by 45% to € 271.0 million (previous year: € 187.5 million); the sale of Mori Seiki products contributed € 88.9 million to this. Services achieved € 237.9 million (+ 42%) and Energy Solutions contributed € 33.1 million (+ 66%). More detailed information on each segment is given on page 10 et seq.

In the first half year order intake amounted to € 1,188.4 million (+ 22%); it was thus € 216.8 million higher than the previous year's period. Domestic orders rose overall by 5% to € 396.5 million (previous year: € 376.8 million). Accordingly international orders grew by 33% to € 791.9 million (previous year: € 594.8 million). International orders accounted for 67% of orders (previous year: 61%). At the international trade fairs our products met with great interest: the simtos in Seoul, the metalloobrabotka in Moscow and the cimes in Beijing were successful. The industry highlight for Energy Solutions was the intersolar in Munich with orders of € 25.6 million.

b . 03
order intake gildemeister group in € million			Domestic International
First six month 2011	376,8	594,8	971,6
First six month 2012	396,5		791,9 1.188,4

metalloobrabotka in Moscow: dmg / mori seiki presents technologies in Moscow from the fields of turning and milling that are specific to the Russian market.

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

Order Backlog

On 30 June 2012 the order backlog within the group amounted to € 1,079.9 million (+ 40% on the previous year's date). The domestic order backlog rose by € 55.3 million (+ 26%) to € 266.0 million. The international order backlog increased by € 255.5 million to € 813.9 million (+ 46%). Of the current orders, international orders account for 75%.

The backlog development progressed in the individual segments as follows:

The "Machine Tools" order backlog results in a calculated order book of an average of some six months – a good basic capacity utilisation for the current business year.

Results of Operations, Net Worth and Financial Position

gildemeister was also able to improve its results of operations in the second quarter. ebitda rose to € 36.1 million (previous year: € 29.7 million), ebit reached € 26.6 million (previous year: € 22.1 million) and ebt rose to € 23.2 million (previous year: € 1.6 million).

As of the end of the first half year, ebitda amounted to € 64.7 million (+ 36%; previous year: € 47.6 million), ebit reached € 45.4 million (+ 40%; previous year: € 32.5 million) and ebt rose to € 38.2 million (previous year: € 2.1 million). As at 30 June 2012, the group reports earnings after taxes of € 26.2 million (previous year: € 1.5 million).

The inclusion of the European Mori Seiki sales companies in the consolidated financial statements since 1 January 2012 has impacted the key performance indicators for the results of operations, net worth and financial position. The consolidation led to an increase in total assets and liabilities, a rise in minority interests in equity and additional earnings from the Mori Seiki products' business. The key performance indicators are explained in the Notes to the Financial Statements on pages 27 et seq.

Sales revenues as of the end of the first half year reached € 916.8 million (+ 18%; previous year: € 774.6 million). Gross revenue for the period rose by 19% to € 961.4 million (previous year: € 809.5 million). The cost of materials reached € 529.1 million (previous year: € 442.3 million). Due to the building up of stocks, the materials ratio was 55.0% (previous year's period: 54.6%). Gross income rose by € 65.1 million to € 432.3 million (previous year: € 367.2 million). The personnel ratio decreased to 22.9% (previous year: 23.2%). Employee expenses rose by € 31.8 million to € 219.8 million (previous year: € 188.0 million). More detailed information can be found in the "Employees" chapter on page 15.

The balance of other income and expenses amounted to € 147.8 million (previous year: € 131.6 million). This increase is mainly due to sales revenue-dependent expenses. Depreciation amounted to € 19.3 million (previous year: € 15.1 million). The net financial costs were € – 7.2 million (previous year: € – 30.4 million). As at 30 June 2012, a tax expense of € 12.0 million arose, which led to earnings after taxes of € 26.2 million (previous year: € 1.5 million). The tax ratio amounts to 31.5% (previous year: 32.0%).

b . 06
	30 June 2012 € million	31 Dec. 2011 € million	30 June 2011 € million
Net worth
Long-term assets	533.1	463.2	442.3
Short-term assets	1,042.3	908.6	1,047.2
Equity	736.1	655.2	643.8
Outside capital	839.3	716.6	845.7
Balance sheet total	1,575.4	1,371.8	1,489.5

Additional information The balance sheet total as at 30 June 2012 rose to € 1,575.4 million (31 Dec. 2011: € 1,371.8 million).

Under assets, long-term assets rose by € 69.9 million to € 533.1 million. Further details of this can be found in the "Investments" chapter on page 9.

Short-term assets rose by € 133.7 million to € 1,042.3 million. Inventories rose due to the necessary preliminary work and prefabrication for the planned sales in the second half year by € 99.2 million to € 551.2 million; at the same time, raw materials, consumables and supplies (rhb) rose to € 220.2 million (€ + 28.0 million), unfinished goods to € 133.5 million (€ + 14.6 million) and finished goods and merchandise to € 194.2 million (€ + 54.8 million). The rise in sales in the first half year led to an increase in trade receivables of € 46.0 million to € 261.2 million. The turnover rate of inventories was 3.5 (previous year's period: 3.4). Liquid funds amounted to € 68.7 million (31 Dec. 2011: € 105.2 million).

Under equity and liabilities, equity rose by € 80.9 million to € 736.1 million (31 Dec. 2011: € 655.2 million). Minority interests in equity rose, due to the inclusion of the European Mori Seiki sales companies, by € 73.6 million to € 85.7 million. Due to the rise in total assets, the equity ratio in the first half year was 46.7% (31 Dec. 2011: 47.8%). Borrowings rose overall by € 122.7 million to € 839.3 million. At the same time prepayments received for orders increased by € 23.9 million to € 151.7 million. Provisions amounted to € 201.9 million (€ + 5.2 million) and trade payables rose by € 38.1 million to € 306.2 million.

The group's financial position developed as follows: In the first half year the cash flow from operating activities was € – 53.6 million (previous year: € – 47.3 million). Based on earnings before taxes (ebt) of € 38.2 million (previous year: € 2.1 million), depreciation (€ + 19.3 million) and the rise in prepayments received (€ + 23.9 million) had a positive effect on cash flow. A rise in inventories of € 79.2 million and a decline in trade payables of € 14.1 million reduced cash flow.

Cash flow from investment activities was € – 23.9 million (previous year: € – 17.1 million). Cash flow from financing activities was € 41.1 million (previous year: € 37.6 million).

Due to seasonal fluctuations, the free cash flow in the first half year was € – 77.5 million (previous year: € – 64.4 million). In the second quarter the free cash flow was € 5.7 million (previous year's quarter: € 15.0 million). A decline in trade receivables of € 15.3 million and a rise in trade payables of € 24.7 million had a positive effect on this development in the second quarter. Opposing effects arose from a rise in inventories of € 25.8 million.

In the second half year we plan to have growing liquidity surpluses and are anticipating a positive free cash flow for the whole year of more than € 50 million.

b . 07
	2012 First six months € million	2011 First six months € million
Cashflow
Cash flow from operating activities	– 53.6	– 47.3
Cash flow from investment activity	– 23.9	– 17.1
Cash flow from financing activity	41.1	37.6
Changes in cash and cash equivalents	– 36.5	– 26.5
Liquid funds at the start of the reporting period	105.2	111.8
Liquid funds at the end of the reporting period	68.7	85.3

Investments

Investments in property, plant and equipment, and in intangible assets in the first half year amounted to € 27.1 million (previous year's figure: € 30.9 million). In Bielefeld, the implementation of the new site concept forged ahead as planned. Besides fundamental measures to optimise and modernise the site, an "Energy Solutions Park" is also being set up. At our site in Seebach, the construction of the Technical Innovation Center and the expansion of the assembly areas are now in the final construction stages. Further focus has been placed on making available the necessary tools, models and supplies for production as well as on developing trendsetting products.

On about 7,500 square metres the new technical innovation centre with integrated prototype and experimental set-up as well as logistic area and production spaces is being built.

Segmental Reporting

Our business activities include the "Machine Tools" and "Industrial Services" segments. The Mori Seiki machines produced by us under licence are included in "Machine Tools"; the trade in Mori Seiki products will be booked under "Industrial Services". "Corporate Services" comprises the groupwide holding functions.

The breakdown of sales revenues, order intake and ebit for the individual segments is presented as follows:

segment key figures
of the gildemeister group				Changes 30 June 2012
	30 June 2012	31 Dec. 2011	30 June 2011		to 30 June 2011
	€ million	€ million	€ million	€ million	%
Sales Revenues	916.8	1,687.7	774.6	142.2	18
Machine Tools	532.1	1,088.1	467.7	64.4	14
Industrial Services	384.6	599.4	306.8	77.8	25
Corporate Services	0.1	0.2	0.1	0.0

Order Intake	1,188.4	1,927.3	971.6	216.8	22
Machine Tools	672.2	1,245.8	633.6	38.6	6
Industrial Services	516.1	681.3	337.9	178.2	53
Corporate Services	0.1	0.2	0.1	0.0

ebit	45.4	112.5	32.5	12.9
Machine Tools	16.2	73.4	16.3	– 0.1
Industrial Services	40.3	56.9	27.2	13.1
Corporate Services	– 11.2	– 17.5	– 11.0	– 0.2

"Machine Tools"

The "Machine Tools" segment includes the group's new machines business with the business units of turning and milling, ultrasonic / laser technology, electronics and the ecoline product line.

b . 10
key figures "machine tools" segment	30 June 2012	31 Dec. 2011	30 June 2011		Changes 30 June 2012 to 30 June 2011
	€ million	€ million	€ million	€ million	%
Sales revenues
Total	532.1	1,088.1	467.7	64.4	14
Domestic	178.9	373.1	149.4	29.5	20
International	353.2	715.0	318.3	34.9	11
% International	66	66	68
Order intake
Total	672.2	1,245.8	633.6	38.6	6
Domestic	210.7	469.1	242.3	– 31.6	– 13
International	461.5	776.7	391.3	70.2	18
% International	69	62	62
Order backlog
Total	632.2	492.1	500.9	131.3	26
Domestic	172.6	140.8	137.7	34.9	25
International	459.6	351.3	363.2	96.4	27
% International	73	71	73
Investments	14.5	47.9	22.6	– 8.1	– 36
ebit	16.2	73.4	16.3	– 0.1

					Changes 30 June 2012
	30 June 2012	31 Dec. 2011	30 June 2011		to 31 Dec. 2011 %
Employees	3,296	3,178	3,091	118	4
plus trainees	162	219	180	– 57	– 26
Total employees	3,458	3,397	3,271	61	2

The "Machine Tools" segment developed as follows in the second quarter: Sales revenues rose by 5% to € 272.5 million (previous year's quarter: € 259.3 million). As at 30 June 2012, sales revenues increased to € 532.1 million and were thus overall 14% above the comparable period in the previous year (€ 467.7 million). The "Machine Tools" segment contributed 58% of sales revenues in the first six months (previous year: 60%).

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

Order intake in the "Machine Tools" segment rose in the first half year by 6% or € 38.6 million to € 672.2 million (previous year's period: € 633.6 million). In the second quarter orders amounted to € 312.3 million (previous year: € 338.2 million). "Machine Tools" thus accounted for 57% of all incoming orders (previous year: 65%). On 30 June the order backlog was € 632.2 million (year-on-year comparison: € 500.9 million). As a result of building up stocks of finished goods, ebit amounted to € 16.2 million (previous year: € 16.3 million). As at 30 June, the "Machine Tools" segment had 3,458 employees (+ 61 employees; 31 Dec. 2011: 3,397). This increase was primarily due to taking on additional production personnel at our sites in Pleszew, Seebach und Pfronten.

"Industrial Services"

The "Industrial Services" segment includes the business activities of the Services and Energy Solutions divisions. These are dmg Vertriebs und Service GmbH and its subsidiaries, as well as a+f GmbH and the companies responsible for production and for sales and services. This also includes the sale and service of Mori Seiki machines. The segment provides all the services from one source.

In the Services business division we have combined all the services and products relating to our machine tools. With the aid of the dmg LifeCycle Services, our customers optimise the productivity of their machine tools over their entire life cycle – from commissioning until part exchange as a used machine. A diverse range of training, repair and maintenance services ensure our customers achieve a high cost efficiency of their machine tools.

In Energy Solutions gildemeister offers integrated energy solutions for the production, storage and usage by industrial operations through their own consumption and the setting up of large-scale photovoltaic plants for investors. The business division covers four areas: Components, SunCarrier, CellCube and WindCarrier.

b . 12
key figures "industrial services" segment	30 June 2012 € million	31 Dec. 2011 € million	30 June 2011 € million	€ million	Changes 30 June 2012 to 30 June 2011 %
Sales revenues
Total	384.6	599.4	306.8	77.8	25
Domestic	189.1	259.3	122.4	66.7	54
International	195.5	340.1	184.4	11.1	6
% International	51	57	60
Order intake
Total	516.1	681.3	337.9	178.2	53
Domestic	185.7	294.9	134.4	51.3	38
International	330.4	386.4	203.5	126.9	62
% International	64	57	60
Order backlog
Total	447.7	319.1	268.2	179.5	67
Domestic	93.4	96.8	73.0	20.4	28
International	354.3	222.3	195.2	159.1	82
% International	79	70	73
Investments	8.4	24.2	7.6	0.8	11
ebit	40.3	56.9	27.2	13.1
	30 June 2012	31 Dec. 2011	30 June 2011		Changes 30 June 2012 to 31 Dec. 2011 %
Employees	2,842	2.561	2.366	281	11
plus trainees	1	3	2	– 2	– 67
Total employees	2,843	2.564	2.368	279	11

The "Industrial Services" segment developed satisfactorily in the second quarter as follows: Sales revenues rose to € 192.5 million. At the end of the first half year, sales revenues were € 384.6 million (previous year: € 306.8 million). The Services division recorded a rise in sales revenues in the second quarter of € 60.8 million to € 182.7 million (previous year: € 121.9 million). In the first six months sales revenues rose to € 364.9 million (previous year: € 230.1 million). Sales revenues in the Energy Solutions division in the second quarter were € 9.8 million (previous year: € 16.0 million) and at the end of the first half year were € 19.7 million (previous year: € 76.7 million). In total, "Industrial Services" had a 42% share in group sales revenues (previous year: 40%).

Order intake rose significantly in the second quarter by € 83.5 million (+ 45%) to € 271.0 million (previous year's quarter: € 187.5 million). In the first half year order intake rose by € 178.2 million to € 516.1 million (previous year: € 337.9 million). "Industrial Services" thus accounted for 43% of incoming orders in the group (previous year: 35%). The Energy Solutions division amounted to € 42.4 million (previous year: € 34.6 million). The share of Services rose to € 473.7 million (previous year: € 303.3 million); the sales of Mori Seiki products contributed € 178.6 million to this. We are planning order intake for Mori Seiki products of about € 350 million in the current financial year. The order backlog amounted to € 447.7 million (year-on-year comparison: € 268.2 million).

ebit rose in the first six months to € 40.3 million (previous year: € 27.2 million). In the "Industrial Services" segment the number of employees at the end of the second quarter was 2,843 (31 Dec. 2011: 2,564). The rise in employee numbers resulted mainly from the cooperation with Mori Seiki in the European markets and the associated integration of 227 employees. Moreover, we have increased personnel in Asia to strengthen our sales and service capacity.

b . 13
key figures "corporate services" segment	30 June 2012 € million	31 Dec. 2011 € million	30 June 2011 € million	Changes 30 June 2012 to 30 June 2011 € million
Sales Revenues	0.1	0.2	0.1	0.0
Order intake	0.1	0.2	0.1	0.0
Investments	4.2	17.6*	0.7	3.5
ebit	– 11.2	– 17.5	– 11.0	– 0.2
*of which € 14.8 million capital inflow to financial assets

	30 June 2012	31 Dec. 2011	30 June 2011	Changes 30 June 2012 to 31 Dec. 2011 %
Employees	77	71	71	6 8

"Corporate Services"

The "Corporate Services" segment comprises gildemeister Aktiengesellschaft with its group-wide holding functions. ebit amounted to € – 11.2 million (previous year: € – 11.0 million). The expenses include project costs and employee expenses for the planned production site in Russia, the further development of the group-wide sites as well as for the further internationalisation of the group.

Employees

As at 30 June 2012, gildemeister had 6,378 employees, of whom 163 were trainees (31 Dec. 2011: 6,032). In comparison with year-end 2011, the number of employees has risen by 346. This increase in personnel resulted mainly from the integration of 227 Mori Seiki employees within the scope of bringing together the joint sales and service activities in Europe, as well as from taking on new employees at our production sites in Pleszew, Seebach and Pfronten. Our domestic companies have 3,638 employees (57%) and our foreign companies have 2,740 employees (43%). The personnel costs amounted to € 219.8 million (previous year's period: € 188.0 million). In comparison with the previous year, the employee ratio decreased slightly to 22.9% (previous year's period: 23.2%).

gildemeister Share

In the second quarter the gildemeister share was not able to pick up from the positive performance in the first three months. Uncertainty caused by the euro debt crisis is proving increasingly to be a burden on the capital markets. Starting at € 14.99 (2 Apr. 2012), the share closed the second quarter at € 12.41 (29 Jun. 2012). At the present time the share is being quoted at € 11.50 (23 July 2012). The company is currently being analysed by 14 banks, ten of which recommend buying the share. Four banks recommend holding on to the share.

In the first six months, on the basis of the number of shares of 60.2 million, a weighted turnover of 0.8-times can be calculated (previous year's weighted period: 1.2 times). The trading volume averaged 384,000 shares per trading day (previous year: 467,000 shares).

Research & Development

Expenses for research and development in the first half year amounted to € 27.8 million (previous year: € 25.2 million). There are currently 499 employees working on the development of our new products; this corresponds to 15% of the workforce. In the first six months, gildemeister presented eight of a total of 17 new developments planned for 2012.

In turning technology, we presented the sprint 50 as a world premiere with three turrets. With the patented twin concept, this turning machine was developed for efficient use in the production of mass parts. It enables flexible workpiece machining of up to three workpieces simultaneously. The trifix interface for fast, precise tool change reduces set-up times by up to 35%.

At the intersolar in Munich, gildemeister energy solutions presented integrated energy solutions for the production, storage and use of renewable energies for own consumption by industrial companies. The highlights were the flexible and scalable SunCarrier 22 solar tracking system and the modular CellCube storage solutions for independent electricity supply.

The 17 new developments in 2012 will be exhibited by gildemeister at a total of 64 national and international trade fairs as well as at in-house exhibitions. These include throughout the remainder of the year the industry highlights of the imts in Chicago, the amb in Stuttgart and the bimu in Milan and the jimtof in Tokyo.

World premiere in the 2nd quarter 2012 – the sprint 50: A new dimension in high-speed automated turning with the patented twin workspace concept is the sprint 50. At the in-house exhibition in Bielefeld in June 2012 the sprint 50 was presented for the first time as a world premiere and with its three turrets offers complete machining, for example for medical technology.

Opportunities and Risk Management Report

In its business activities, gildemeister is exposed to various opportunities and risks. Our opportunities and risk management assists us in identifying and assessing these timely. The Executive Board and the Supervisory Board are informed regularly about the current risk situation of the group and of the individual business units.

Opportunities are identified and analysed within the opportunities and risk management system. With the Marketing Information System (mis) we identify significant individual opportunities by compiling customer data worldwide and evaluating market and competitor data. We intend to make use of the potential in growth markets. We will continue to build up our sales. In this connection, we are also planning to extend our cooperation with Mori Seiki to the Chinese growth market.

We expect that renewable energies will continue to grow in importance. We are participating in this market with gildemeister energy solutions, which offers our industrial customers, in particular, solutions to optimise their energy management. With our ecoline series we are serving the demand in global markets for favourablypriced machines with innovative technology. Through the milltap 700, which we jointly developed with Mori Seiki, we are tapping into a new market segment, where we see good development opportunities. mg Finance offers our customers tailor-made financing solutions.

Strategic opportunities arise for us through our sustained leadership in innovations and technology. We will benefit from a sound order backlog and expect further stimulus from the international autumn trade fairs.

Risks are systematically identified, assessed, aggregated, monitored and notified by the gildemeister risk management system. Overall economic risks ensue in particular from cyclical trends. Accordingly, economic activity in Europe, especially, is restrained. Development is negatively affected overall by the euro debt crisis. Further growth prospects in Europe depend essentially on whether and how the crisis can be resolved. Should the rescue packages prove to be ineffective and it is not possible to contain the crisis, this could have a considerable impact on the economy. A slump in the economy would lead to a marked reduction in sales volumes or in the margins achievable. On the procurements side, gildemeister finds itself faced with possible price increases for materials in the machine tools business.

We assume that the tax and social insurance declarations we submit are complete and correct. Nevertheless, due to differing assessments of the facts, additional charges may arise within the scope of an audit.

To secure our future success, we are reliant upon highly-qualified specialists and managers. If it is not possible to gain and retain such employees in sufficient numbers, this may restrict the group's development long-term.

Additional information For large-scale photovoltaic projects in the gildemeister energy solutions division, there are the usual risks associated with the project business. Moreover, we operate solar parks for some customers and therefore bear the corresponding operational risks. All risks are aggregated to a total risk at gildemeister, which, from today's perspective, does not endanger the future of the group as a going concern.

Forecast

The world economy will continue to grow according to current forecasts of the Kiel Institute for the World Economy (ifw) – however only if uncertainty on the financial markets caused by the debt crisis lessens. A decline in oil prices could relieve the strain. Dynamic growth is forecast for China. In Japan and in the usa, economic activity should develop at a moderate pace over the remainder of the year. In Europe the economic situation will remain weak. Cyclical divergences within the eurozone are expected to intensify further. In Germany the economy has also been overshadowed recently by increased uncertainty.

The worldwide market for machine tools should develop at a relatively steady pace in 2012. The forecast of the German Machine Tool Builders' Association (vdw) and of the British economic research institute, Oxford Economics, (as at April 2012) still continue to anticipate growth in worldwide consumption of 8.8% or € 67.4 billion. The statistics available from the major national machine tool builders' associations, however, indicate a decline in order intake. According to our estimates, worldwide consumption will be lower.

gildemeister intends to expand its global market presence, especially in fastgrowing markets. We consider future sales markets with growth potential to be primarily in Asia. Current forecast expect a rise of 11.3%; we plan to participate in this growth at a higher than average level. In addition, we will concentrate more intensely on growing industries such as aerospace and medical technology.

We will push ahead with our cooperation with Mori Seiki throughout the current financial year and extend it to China, the largest sales market. We have realigned our renewable energies business.

Latest news:

gildemeister received the "Volkswagen Group Award 2012" on 18 July 2012. The Volkswagen group honoured a total of 18 of its best suppliers for their entrepreneurial performance. gildemeister received the award as a specialist for turning and milling machines as well as for producing a solar and wind powered electric vehicle charging station.

Sources: Press release of Volkswagen Aktiengesellschaft of 18 July 2012 Award certificate bestowed on gildemeister Aktiengesellschaft in Copenhagen, 18 July 2012

Future Business Development

gildemeister confirms its forecasts for financial year 2012: In the current financial year we are expecting order intake for the first time of more than € 2 billion. Statements on future business performance will become more volatile. Order intake in the third quarter will be more restrained due to seasonal factors. In the second half of the year we are generally planning to continue our good performance.

The Asian markets, America and the Eastern European markets are persistently developing positively. Willingness to invest is continuing to decline in the Southern European countries as a consequence of the euro debt crisis. We are continuing to push ahead with our cooperation with Mori Seiki. We are in line with plans and we are making increasing use of synergy potentials.

We are planning sales revenues of more than € 1.9 billion and for the whole year we intend to achieve ebt of more than € 100 million and net income for the year of more than € 65 million. Free cash flow of more than € 50 million is planned. This planning is based on current market forecasts and does not take account of the euro debt crisis spreading any further. Due to the positive outlook for business and earnings, we plan to distribute a higher dividend per share for financial year 2012 than in the previous year.

General conditions for financial year 2013 are actually difficult to be estimated. The economy in Europe will be significantly affected by how the euro debt crisis develops and the results of the rescue packages. For 2013, the vdw and Oxford Economics are still forecasting growth (as at April 2012) in the worldwide consumption of machine tools. We are planning a positive development also for the financial year 2013. We have introduced measures to be flexible on costs so as to be prepared for any possible economic changes.

Additional information

²⁰ Interim Consolidated Financial Statements of gildemeister Aktiengesellschaft as at 30 June 2012

Consolidated Income Statement

d . 01

2nd quarter	2012		2011		Changes
	01 April – 30 June		01 April – 30 June		2012 against 2011
	€ million	%	€ million	%	€ million	%
Sales Revenues	465.0	98.0	397.2	100.2	67.8	17.1
Changes in finished goods
and work in progress	7.7	1.6	– 3.2	– 0.8	10.9	340.6
Own work capitalised	1.8	0.4	2.4	0.6	– 0.6	25.0
Total Work Done	474.5	100.0	396.4	100.0	78.1	19.7
Cost of materials	– 253.8	– 53.5	– 203.3	– 51.3	– 50.5	24.8
Gross Profit	220.7	46.5	193.1	48.7	27.6	14.3
Personnel costs	– 111.0	– 23.4	– 95.1	– 24.0	– 15.9	16.7
Other income and expenses	– 73.6	– 15.5	– 68.3	– 17.2	– 5.3	7.8
Depreciation	– 9.5	– 2.0	– 7.6	– 1.9	– 1.9	25.0
Financial Result	– 3.4	– 0.7	– 20.5	– 5.2	17.1	83.4
ebt	23.2	4.9	1.6	0.4	21.6
Income Taxes	– 7.3	– 1.5	– 0.4	– 0.1	– 6.9
Earnings after taxes	15.9	3.4	1.2	0.3	14.7
Profit share of shareholders of
gildemeister Aktiengesellschaft	16.9	3.6	1.6	0.4	15.3
Profit share attributed to minority interests	– 1.0	– 0.2	– 0.4	– 0.1	– 0.6
Earnings per share pursuant to ias 33 (in euros)
Undiluted	0.29		0.03
Diluted	0.29		0.03

first six months	2012		2011		Changes 2012 against 2011
		01 Jan. – 30 June		01 Jan. – 30 June
	€ million	%	€ million	%	€ million	%
Sales Revenues	916.8	95.4	774.6	95.7	142.2	18.4
Changes in finished goods
and work in progress	41.6	4.3	30.2	3.7	11.4	37.7
Own work capitalised	3.0	0.3	4.7	0.6	– 1.7	36.2
Total Work Done	961.4	100.0	809.5	100.0	151.9	18.8
Cost of materials	– 529.1	– 55.0	– 442.3	– 54.6	– 86.8	19.6
Gross Profit	432.3	45.0	367.2	45.4	65.1	17.7
Personnel costs	– 219.8	– 22.9	– 188.0	– 23.2	– 31.8	16.9
Other income and expenses	– 147.8	– 15.4	– 131.6	– 16.3	– 16.2	12.3
Depreciation	– 19.3	– 2.0	– 15.1	– 1.9	– 4.2	27.8
Financial Result	– 7.2	– 0.7	– 30.4	– 3.7	23.2	76.3
ebt	38.2	4.0	2.1	0.3	36.1
Income Taxes	– 12.0	– 1.3	– 0.6	– 0.1	– 11.4
Earnings after taxes	26.2	2.7	1.5	0.2	24.7
Profit share of shareholders of
gildemeister Aktiengesellschaft	26.4	2.7	2.2	0.3	24.2
Profit share attributed to minority interests	– 0.2	0.0	– 0.7	– 0.1	0.2
Earnings per share pursuant to ias 33 (in euros)
Undiluted	0.45		0.04
Diluted	0.45		0.04

Group Statement of Comprehensive Income

d . 02
	2012 01 Jan. – 30 June € million	2011 01 Jan. – 30 June € million
Earnings after taxes	26.2	1.5
Other comprehensive income
Differences from currency translation	– 5.3	– 5.3
Changes in market value of derivative financial instruments	0.8	17.1
Changes in the fair value measurement of available-for-sale assets	0.3	1.4
Income tax expense on other comprehensive income	– 0.3	– 4.9
Other comprehensive income for the period after taxes	– 4.5	8.3
Total comprehensive income for the period	21.7	9.8
Profit share of shareholders of gildemeister Aktiengesellschaft	21.9	10.6
Profit share attributed to minority interests	– 0.2	– 0.8

Economic Development

Business Development

Consolidated Balance Sheet

d . 03
assets	30 June 2012 € million	31 Dec. 2011 € million	30 June 2011 € million
Long-term assets
Goodwill	113.5	83.0	80.6
Other intangible assets	63.7	49.3	42.2
Tangible assets	234.5	218.0	205.1
Equity accounted investments	7.2	6.7	6.3
Other equity investments	47.1	46.9	46.2
Trade debtors	2.8	1.4	1.3
Receivables from associated companies	4.7	4.9	3.6
Other long-term financial assets	9.8	10.4	6.8
Other long-term assets	1.1	1.3	8.1
Deferred taxes	48.7	41.3	42.1
	533.1	463.2	442.3
Short-term assets
Inventories	551.2	452.0	474.6
Trade debtors	222.2	188.7	364.9
Receivables from at equity accounted companies	11.2	3.8	7.6
Receivables from related parties	13.0	10.5	0.0
Receivables from associated companies	7.3	5.9	0.3
Other short-term financial assets	80.9	69.4	88.5
Other short-term assets	41.1	29.5	26.0
Cash and cash equivalents	68.7	105.2	85.3
Long-term assets held for sale	46.7	43.6	0.0
	1.042.3	908.6	1.047.2
	1.575.4	1.371.8	1.489.5

equity and liabilities	30 June 2012 € million	31 Dec. 2011 € million	30 June 2011 € million
Equity
Subscribed capital	151.7	151.7	156.4
Capital provision	257.2	257.2	257.1
Revenue provisions	241.5	234.2	218.3
Total equity of shareholders of
gildemeister Aktiengesellschaft	650.4	643.1	631.8
Minority interests' share of equity	85.7	12.1	12.0
Total equity	736.1	655.2	643.8
Long-term liabilities
Long-term financial debts	12.5	14.5	16.7
Pension provisions	22.2	21.6	26.5
Other long-term provisions	17.8	16.7	22.2
Trade creditors	0.3	0.3	0.2
Liabilities to associated companies	0.0	0.4	0.0
Other long-term financial liabilities	8.8	16.2	15.0
Other long-term liabilities	2.5	2.8	2.9
Deferred taxes	11.0	7.7	6.2
	75.1	80.2	89.7
Short-term liabilities
Short-term financial debts	70.8	19.5	126.6
Tax provisions	16.6	13.3	6.5
Other short-term provisions	145.3	145.1	130.6
Payments received on account	151.7	127.8	151.6
Trade creditors	268.4	246.1	291.9
Liabilities to at equity accounted companies	0.3	0.2	0.1
Liabilities to associated companies	12.7	9.9	0.2
Liabilities to related parties	24.5	11.2	0.0
Other short-term financial liabilities	34.1	24.3	24.5
Other short-term liabilities	29.0	27.1	24.0
Liabilities in connection with assets held for sale	10.8	11.9	0.0
	764.2	636.4	756.0
	1,575.4	1,371.8	1,489.5

Consolidated Cash Flow Statement

d . 04
	2012 01 Jan. – 30 June € million	2011 01 Jan. – 30 June € million
cash flow from operating activities
Earnings before tax (ebt)	38.2	2.1
Income taxes	– 12.0	– 0.6
Depreciation	19.3	15.1
Change in deferred taxes	– 4.1	– 2.0
Change in long-term provisions	0.8	2.5
Other income and expenses not affecting payments	– 1.4	14.4
Change in short-term provisions	– 1.0	4.0
Changes in inventories, trade debtors and other assets	– 97.9	– 144.6
Changes in trade creditors and other liabilities	4.5	61.8
	– 53.6	– 47.3
cash flow from investment activity
Amounts paid out for investments in intangible and tangible assets	– 24.5	– 20.9
Amounts received from the disposal of fixed assets	0.6	3.8
	– 23.9	– 17.1
cash flow from financing activity
Inflows / outflows for borrowings / repayment of borrowings	51.5	– 176.1
Payments for the costs of the capital increase	0.0	– 6.3
Dividends paid	– 14.6	0.0
Proceeds from capital increase	0.0	220.0
Payments for changes in interests in subsidiaries	– 2.5	0.0
Changes to consolidated companies	6.7	0.0
	41.1	37.6
Changes affecting payments	– 36.4	– 26.8
Effects of exchange rate changes on financial securities	– 0.1	0.3
Cash and cash equivalents at 1 January	105.2	111.8
Cash and cash equivalents at 30 June	68.7	85.3

Development of Group Equity

d . 05
	Subscribed capital € million	Capital provision € million	Revenue provisions € million	Total equity of shareholders of gildemeister Aktiengesellschaft € million	Minority interests' share of equity € million	Total Equity € million
As at 1 Jan. 2012	151.7	257.2	234.2	643.1	12.1	655.2
Total comprehensive income	0.0	0.0	21.9	21.9	– 0.2	21.7
Consolidation measures /
Other changes	0.0	0.0	0.0	0.0	73.8	73.8
Dividend	0.0	0.0	– 14.6	– 14.6	0.0	– 14.6
As at 30 June 2012	151.7	257.2	241.5	650.4	85.7	736.1

As at 30 June 2011	156.4	257.1	218.3	631.8	12.0	643.8
Capital increase	37.9	177.0	0.0	214.9	0.0	214.9
Other changes	0.0	0.0	0.0	0.0	6.2	6.2
Total comprehensive income	0.0	0.0	10.6	10.6	– 0.8	9.8
As at 1 Jan. 2011	118.5	80.1	207.7	406.3	6.6	412.9
	Subscribed capital € million	Capital provision € million	Revenue provisions € million	Total equity of shareholders of gildemeister Aktiengesellschaft € million	Minority interests' share of equity € million	Total Equity € million

Group Segmental Reporting

d . 06
2nd quarter 2012	Machine Tools € million	Industrial Services € million	Corporate Services € million	Transitions € million	Group € million
Sales revenues	272.5	192.5	0.0		465.0
ebit	14.0	18.6	– 6.4	0.4	26.6
Investments	7.7	4.2	3.8		15.7
Employees	3,458	2,843	77		6,378

2nd quarter 2011	Machine Tools € million	Industrial Services € million	Corporate Services € million	Transitions € million	Group € million
Sales revenues	259.3	137.9	0.0		397.2
ebit	13.1	16.3	– 7.6	0.3	22.1
Investments	7.1	5.9	0.4		13.4
Employees	3,271	2,368	71		5,710

first six months 2012	Machine Tools € million	Industrial Services € million	Corporate Services € million	Transitions € million	Group € million
Sales revenues	532.1	384.6	0.1		916.8
ebit	16.2	40.3	– 11.2	0.1	45.4
Investments	14.5	8.4	4.2		27.1
Employees	3,458	2,843	77		6,378

first six months 2011	Machine Tools € million	Industrial Services € million	Corporate Services € million	Transitions € million	Group € million
Sales revenues	467.7	306.8	0.1		774.6
ebit	16.3	27.2	– 11.0	0.0	32.5
Investments	22.6	7.6	0.7		30.9
Employees	3,271	2,368	71		5,710

Notes to the Interim Consolidated Financial Statements

1 application of regulations The interim consolidated financial statements of gildemeister Aktiengesellschaft as of 30 June 2012 were prepared, as were the Consolidated Financial Statements of the year ending 31 December 2011, 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 2011.

In view of the sense and purpose of interim reporting as an instrument of information based on the Consolidated Financial Statements, and in accordance with ias 1.112, 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 right of choice contained in the ifrs that has been exercised.

The accounting and valuation principles and applied consolidation methods remain unchanged from the financial year 2011. For further details we refer to the Notes to the Consolidated Financial Statements of the year ending 31 December 2011.

2 consolidated group

On 30 June 2012, the gildemeister group, including gildemeister Aktiengesellschaft, comprised 124 companies, 121 of which were included in the Interim Financial Statements as part of the full consolidation process. Compared to 31 March 2012, the number of group companies has risen by one. In June, gildemeister Beteiligungen ag founded Ulyanovsk Machine Tools ooo, with registered office in Ulyanovsk, Russia. Compared to the consolidated financial statements as of 31 December 2011, the number of companies has risen by seven. As already reported in the interim report as of 31 March 2012, the material changes result from expanding the cooperation with Mori Seiki to the European markets. As of 1 January 2012, gildemeister and Mori Seiki transferred their investments in their European sales companies to dmg mori seiki Europe ag, Dübendorf, Switzerland. dmg Holding ag, Dübendorf, Switzerland, holds 60% of the shares in dmg mori seiki Europe ag and Mori Seiki Co. Ltd., Nagoya, holds 40% of the shares.

The European Mori Seiki sales companies in Italy, France, Spain, Great Britain and Sweden have been consolidated since 1 January 2012.

The following individual assets and liabilities were acquired and recognised at provisional fair value: € 22,823 k intangible assets, property, plant and equipment, and financial assets, € 18,900 k inventories as well as € 56,621 k receivables and other assets, € 5,297 k provisions, € 70,806 k borrowings and cash and cash equivalents in an amount of € 6,646 k. The net assets acquired amounted in total to € 28,887 k. When measuring the minority interests' share in equity, use was made of the option in ifrs 3 of measuring minority interests at their proportionate share of net assets, which led to lower recognition.

Additional information As of 30 June 2012, the purchase price allocation is still provisional. This results in goodwill of € 21,200 k.

Since 1 January 2012, the European Mori Seiki sales companies have contributed an additional € 72,125 k to group sales revenues. The share of earnings before taxes for the same period amounted to € 1,094 k.

Furthermore, comparison with the consolidated financial statements for the period ending 31 December 2011 is not impaired. With no change from the consolidated financial statements 2011, dmg / Mori Seiki Australia Pty. Ltd. and sun carrier omega Pvt. Ltd. are classified as a joint venture and included in the consolidated financial statements at equity. mg Finance GmbH was classified as an associate and also included at equity in the interim financial statements.

In accordance with ias 33, earnings per share are determined by dividing the consolidated earnings by the average weighted number of shares as follows. At the same time the group earnings after taxes of € 26.2 million are increased by € 0.2 million by the minority interests' earnings. 3 earnings per share

d . 07
Group result excluding the profit share of the shareholders € k	26,439
Average weighted number of shares (pieces)	58,363,195
Earnings per share acc. to ias 33 €	0.45

Detailed explanations of the income statement, the statement of financial position and the cash flow statement can be found in the section "Results of Operations, Net Worth and Financial Position" on page 7 et seq. 4 income statement, statement of financial position, cash flow statement

5 statement of comprehensive income

Total comprehensive income for the period as at 30 June of € 21.7 million comprised earnings after taxes (€ 26.2 million) and "other comprehensive income for the period after taxes" (€ – 4.5 million). Significant influential factors were the change in measurement of financial assets available for sale and the change in the market value of derivative financial instruments. The differences arising from the foreign currency translation reduced comprehensive income. Seasonally-related income and expenses, respectively those distributed unevenly over the year, did not have any material effect.

Equity increased in total by € 80.9 million to € 736.1 million. Minority interests' share of equity rose by € 73.6 million to € 85.7 million. The earnings after taxes as at 30 June 2012 of € 26.2 million, the changes in value of financial assets available for sale of € 0.3 million as well as the changes in fair value of derivative financial instruments of € 0.5 million increased equity. This was compensated by a reduction in equity through the recognition of currency changes directly in equity as well as by the distribution of a dividend in May 2012 of € – 14.6 million. 6 development of group equity

Within the scope of segmental reporting, pursuant to the ifrs 8 regulations the business activities of the gildemeister group – as already reported – have been differentiated since financial year 2011 into the business segments of "Machine Tools", "Industrial Services" and "Corporate Services". The segment differentiation follows the internal management and reporting on the basis of the different products and services. The Mori Seiki machines produced under licence are included in "Machine Tools"; the business with Mori Seiki products will be booked under "Industrial Services". The demarcation of the segments and the determination of the segment results remain unchanged from 31 December 2011. Further details on business development are included in the "Segments" section on page 11 et seq. 7 segmental reporting

8 statement of relations to related companies and persons

Material changes as of 31 March 2012 have not arisen. As presented in the notes to the financial statements as of 31 December 2011, numerous business relations continue to exist with related parties, which are conducted on the basis of standard market terms and conditions.

Significant events occurring after the end of the reporting period are presented in the "Forecast". No other significant events have occurred after the reporting date of the half year financial statements. 9 events occurring after the balance sheet date

Responsibility Statement

To the best of our knowledge, and in accordance with the applicable accounting and reporting principles, the consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the group management report includes a fair review of the development and performance of the business and the position of the group, together with a description of the principal opportunities and risks associated with the expected development of the group.

Bielefeld, 26 July 2012 gildemeister Aktiengesellschaft The Executive Board

Dipl.-Kfm. Dr. Rüdiger Kapitza Dipl.-Ing. Günter Bachmann

Dipl.-Kfm. Christian Thönes

Dipl.-Kffr. Kathrin Dahnke Dipl.-Kfm. Dr. Thorsten Schmidt

Supervisory Board: Hans Henning Offen, Chairman Günther-Johann Schachner, Deputy chairman

	Cover
01	Key figures on business development	III
02	Sales revenues	IV
03	Order intake	IV
04	ebit	IV
05	Number of employees	IV
A.	Overall economic development
a . 01	Exchange rate movements euro in relation to us dollar, yen and renminbi	2
a . 02	ifo business climate – balance from the percentage of positive and negative company reports	3
B.	Business development of the gildemeister group
b . 01	gildemeister group structure	4
b . 02	Sales revenues gildemeister group	5
b . 03	Order intake gildemeister group	5
b . 04	Order intake gildemeister group by region	6
b . 05	Order backlog gildemeister group	6
b . 06	Financial position	7
b . 07	Cash flow	9
b . 08	Contribution of each segment / division to investments
	in fixed assets and intangible assets	9
b . 09	Segment key figures of the gildemeister group	10
b . 10	Key figures "Machine Tools" segment	11
b . 11	Distribution of sales revenues by segments / divisions within the gildemeister group	12

b . 11	Distribution of sales revenues by segments / divisions within the gildemeister group	12
b . 12	Key figures "Industrial Services" segment	13
b . 13	Key figures "Corporate Services" segment	14
b . 14	The gildemeister share in comparison with the mdax® January 2009 to July 2012	15

C. Forecast

c . 01	Machine tools consumption worldwide	18

D. Interim consolidated financial statement of

	gildemeister Aktiengesellschaft as of 30 June 2012
d . 01	Consolidated Income Statement	20
d . 02	Group Statement of Comprehensive Income	21
d . 03	Consolidated Balance Sheet	22
d . 04	Consolidated Cash Flow Statement	24
d . 05	Development of Group Equity	25
d . 06	Group Segmental Reporting	26
d . 07	Earnings per share	28

Business Development

25 October 2012	Third Quarterly Report 2012
	(1 July to 30 September)
14 March 2013	Press conference on the balance sheet, Dusseldorf
14 March 2013	Publication of Annual Report 2012
15 March 2013	Society of Investment Professionals in Germany
	(dvfa), Analysts Conference, Frankfurt
07 May 2013	First Quarterly Report 2013
	(1 January to 31 March)
17 May 2013	111th Annual General Meeting of Shareholders
	at 10 a.m. in the Town Hall Bielefeld

Subject to alteration

Your contact at gildemeister:

gildemeister Aktiengesellschaft Gildemeisterstraße 60 d-33689 Bielefeld

André Danks Nadja Sölter E-Mail: [email protected] E-Mail: [email protected]

Investor Relations: Corporate Public Relations:

Telefone: + 49 (0) 52 05 / 74 - 3028 Telefone: + 49 (0) 52 05 / 74 - 3001 Telefax: + 49 (0) 52 05 / 74 - 3273 Telefax: + 49 (0) 52 05 / 74 - 3081

Forward-looking statements

This report contains forward-looking statements, which are based on current estimates of the management of future developments. Such statements are based on the management's current expectations and specific assumptions. They are subject to risks, uncertainties and other factors, which could lead to the actual future circumstances, including the assets, liabilities, financial position and profit or loss of gildemeister, differing materially from or being more negative than those expressly or implicitly assumed or described in these statements. The business activities of gildemeister are subject to a series of risks and uncertainties, which may result in forward-looking statements, estimates or forecasts becoming inaccurate.

gildemeister is strongly affected, in particular, by changes in general economic and business conditions (including margin developments in the most important business areas as well as the consequences of a recession) as these have a direct effect on processes, suppliers and customers. Due to their differences, not all business areas are affected to the same extent by changes in the economic environment; significant differences exist with respect to the timing and extent of the effects of any such changes. This effect is further intensified by the fact that, as a global entity, gildemeister operates in various markets with very different economic rates of growth. Uncertainties arise inter alia from the risk that customers may delay or cancel orders or they may become insolvent or that prices become further depressed by a persistently unfavourable market environment than that which we are expecting at the current time; developments on the financial markets, including fluctuations in interest rates and exchange rates, in the price of raw materials, in borrowing and equity margins as well as in financial assets in general; growing volatility and further decline in the capital markets and a deterioration in the conditions for the credit business and in particular deterioration from growing uncertainties that arise from the financial market and liquidity crisis including that of the euro debt crisis as well as a deterioration in the future economic success of the core business areas in which we operate; challenges in integrating major acquisitions and in implementing joint ventures and achieving the expected synergy effects and other essential portfolio measures; the introduction of competing products or technology by other companies or the entry onto the market of new competitors; a change in the dynamics of competition (primarily on developing markets); a lack of acceptance of new products and services in customer target groups of the gildemeister group; changes in corporate strategy; interruptions in the supply chain, including the inability of a third party, for example due to a natural catastrophe, to supply parts, components or services on schedule; the outcome of public investigations and associated legal disputes as well as other measures of public bodies; the potential effects of these investigations and proceedings on the business of gildemeister and various other factors.

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 stated, expected, anticipated, intended, planned, aimed at, estimated or projected in these statements. gildemeister neither intends to nor does gildemeister assume any separate obligation to update any forward-looking statements to reflect any change in events or developments occurring after the reporting period. Forward-looking statements must not be understood as a guarantee or assurance of the future developments or events contained therein.

Languages: This report is available in German and English language. Download: www.gildemeister.com Order: We will gladly send additional copies and further information on gildemeister free-of-charge upon request.

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