Quarterly Report • May 7, 2013
Quarterly Report
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| together. | |
|---|---|
| innovative. | |
| global. |
Innovations for the aerospace industry: Complex workpieces made of high quality metals are produced on machines from gildemeister, e.g. helicopter drive gear units.
the global economy developed relatively stable in the first few months of the year. The unresolved state debt crisis in the eurozone continued to put strain on the economy. In their most recent forecast (April 2013), vdw (German Machine Tool Builders' Association) and Oxford Economics are only expecting growth in the worldwide consumption of machine tools of 2.4% for the current year (October 2012 forecast: + 7.6%).
The year began as expected for gildemeister: Order intake was € 518.7 million; the comparable figure for the previous year's period (€ 605.1 million) was marked by several major orders. Sales revenues rose to € 466.1 million (previous year: € 451.8 million). The earnings situation developed constantly: ebitda amounted to € 28.1 million (previous year: € 28.6 million), ebit reached € 17.0 million (previous year: € 18.8 million) and ebt amounted to € 15.1 million (previous year: € 15.0 million). As at 31 March 2013, the group reports earnings after taxes of € 10.4 million (previous year: € 10.3 million).
We are expecting developments in individual markets to diverge further over the course of the year 2013 and competitive pressure to increase. The continued stagnation in the European market and the reluctance to invest in Germany are having a negative impact also on our business. The positive development in the Asian and American markets, as well as in Russia has a compensating effect.
We intend to further consolidate our cooperation with Mori Seiki in the current financial year. We will extend our joint activities to the Chinese and Russian markets. Moreover, we plan to further expand our international production sites. In order to strengthen our brand for the worldwide appearance, we intend to align the names of both companies. Our customers will benefit from us working more closely together in the future by a wider range of services.
gildemeister is planning order intake of around € 2 billion for the year 2013. Due to these expectations and on the basis of our order backlog, sales revenues shall amount to around € 2 billion. Based on the premise that the market will develop as expected, we are planning to achieve ebt of around € 120 million and as a result, an annual net profit of around € 82 million. Subject to these developments, we are planning to make a dividend payout for financial year 2013.
Key Figures The interim Consolidated Financial Statements of gildemeister Aktiengesellschaft were prepared in accordance with the International Financial Reporting Standards (IFRS), as applicable within the European Union. The interim financial statements have not been audited.
| gildemeister group | Changes 31 march 2013 | ||||
|---|---|---|---|---|---|
| 31 march 2013 | 31 dec. 2012 | 31 march 2012 | to 31 march 2012 | ||
| € million | € million | € million | € million | % | |
| Sales revenues | |||||
| Total | 466.1 | 2,037.4 | 451.8 | 14.3 | 3 |
| Domestic | 150.9 | 722.1 | 183.3 | – 32.4 | – 18 |
| International | 315.2 | 1,315.3 | 268.5 | 46.7 | 17 |
| % International | 68 | 65 | 59 | ||
| Order intake | |||||
| Total | 518.7 | 2,260.8 | 605.1 | – 86.4 | – 14 |
| Domestic | 163.7 | 735.8 | 223.6 | – 59.9 | – 27 |
| International | 355.0 | 1,525.0 | 381.5 | – 26.5 | – 7 |
| % International | 68 | 67 | 63 | ||
| Order backlog | |||||
| Total | 1,056.1 | 1,003.5 | 964.5 | 91.6 | 9 |
| Domestic | 265.0 | 252.2 | 277.9 | – 12.9 | – 5 |
| International | 791.1 | 751.3 | 686.6 | 104.5 | 15 |
| % International | 75 | 75 | 71 | ||
| Investments | 12.2* | 74.5 | 11.4 | 0.8 | 7 |
| Personnel costs | 114.3 | 440.4 | 108.8 | 5.5 | 5 |
| Personnel ratio in % | 23.0 | 21.4 | 22.3 | ||
| ebitda | 28.1 | 173.8 | 28.6 | – 0.5 | |
| ebit | 17.0 | 132.9 | 18.8 | – 1.8 | |
| ebt | 15.1 | 120.1 | 15.0 | 0.1 | |
| Earnings after taxes | 10.4 | 82.4 | 10.3 | 0.1 | |
* of which € 1.6 million capital inflow to financial assets
| Changes 31 march 2013 | |||||
|---|---|---|---|---|---|
| 31 march 2013 | 31 dec. 2012 | 31 march 2012 | to 31 dec. 2012 | ||
| % | |||||
| Employees | 6,347 | 6,267 | 6,082 | 80 | 1 |
| plus trainees | 201 | 229 | 177 | – 28 | – 12 |
| Total employees | 6,548 | 6,496 | 6,259 | 52 | 1 |
Page reference for further information in the Interim Report Reference to a diagram or table providing visual representation
Reference to further / updated information in the internet
Sales Revenues Order Intake ebit Employees
| Key Figures | ||
|---|---|---|
| 2 | Overall Economic Development | |
| 3 | Development of the Machine Tool Industry | |
| 4 – 19 | Business Development of the gildemeister Group | |
| 4 | Sales Revenues | |
| 5 | Order Intake | |
| 6 | Order Backlog | |
| 7 | Results of Operations, Net Worth and Financial Position | |
| 10 | Investments | |
| 11 | Segmental Reporting | |
| "Machine Tools" 12 |
||
| "Industrial Services" 13 |
||
| "Corporate Services" 15 |
||
| 16 | Employees | |
| 16 | gildemeister Share | |
| 18 | Research and Development | |
| 19 – 21 | Forecast | |
| 20 | Future Business Development | |
| 22 – 29 | Interim Consolidated Financial Statements of | |
| gildemeister Aktiengesellschaft as at 31 March 2013 | ||
| 22 | Consolidated Income Statement | |
| 22 | Group Statement of Comprehensive Income | |
| 23 | Consolidated Balance Sheet | |
| 25 | Consolidated Cash Flow Statement | |
| 26 | Development of Group Equity | |
| 26 | Group Segmental Reporting | |
| 27 | Notes to the Interim Consolidated Financial Statements | |
| 30 – 31 | Additional information | |
| 30 | List of Tables and Charts | |
| 31 | Financial Calendar |
cover image // Top performance for the Aerospace Industry: dixi 210
As current cooperation project from gildemeister and Mori Seiki, the DIXI 210, combines precision technology with the portal milling machine DMU 210 P from deckel maho Pfronten GmbH. This universal milling machine is used among other things to manufacture parts for the aerospace industry for e.g. helicopter drive gear units.
(Source cover picture top left: ADAC)
Overall economic development progressed at a steady pace in the first quarter 2013. Leading indicators for the world economy initially improved at the beginning of the year. However, economic development is still being affected by the continued state debt crisis in the eurozone. Positive stimuli continue to come from Asia. There was a slight significant increase in economic expansion in China in the first few months. In Japan, the government is providing an additional boost to the economy with economic recovery plans. In the usa, the forecast improved in the first few months of the year, but economic development is affected by fiscal policy. In Europe, southern European countries are still in recession and even some key European countries – e.g. France – are stagnating economically. Germany showed restrained positive growth at the beginning of the year. According to the economic barometer of the German Economic Research Institute (diw), the German economy has grown by 0.3% (compared to the previous quarter).
gildemeister's international business is affected by the euro's exchange rate. The US dollar, Chinese renminbi and Japanese yen are of particular importance. In comparison to the previous year's quarter, the value of the euro developed unevenly in the first quarter 2013 compared to these currencies. Compared to the average value of the euro, the US dollar was 1.32 usd (previous year's quarter: 1.31 usd). Thus the euro was slightly up against the usd. The average value of the Chinese renminbi was 8.22 renminbi (previous year's quarter: 8.27 renminbi) and thus the euro was slightly lower against the renminbi. The prices of our products from our European production remained stable for customers in the USA, in dollar-dependent markets and in China. The average value of the yen fell against the euro by 17.1% and was quoted at 121.8 yen (previous year's quarter: 104.0 yen), this means we were able to purchase products in the yen zone at more favourable prices.
Sources: European Central Bank, Deutsche Bundesbank (German Federal Bank)
Overall Economic Development Development of the Machine Tool Industry
On the whole, the worldwide market for machine tools should experience slight growth in 2013. The German Machine Tool Builders' Association (vdw) and the British Economic Research Institute, Oxford Economics, are only expecting 2.4% growth in world consumption to € 67.9 billion in their most recent forecast (status: April 2013). The growth rate was therefore revised down by more than 5 percentage points compared to the forecast in autumn (October 2012: + 7.6%). Developments in individual markets are likely to diverge further from each other. In Asia, according to current forecasts, there should be a 3.9% rise in demand, making it significantly higher than world consumption. Stable consumption (+ 0.5%) is forecast for America. In contrast, demand for machine tools in Europe is now likely to fall by 1.4%.
The German machine tool market will develop more weakly than the world market. Order intake of the German machine tool manufacturers was declining at the beginning of the year (-19%) compared to the high figures of the corresponding previous year's period. However, Oxford Economics is forecasting relatively stable consumption for the year as a whole on the same level as the previous year (– 0.3%; 2012: € 4.9 billion).
The ifo business climate index rose slightly at the beginning of the year. The main consumer sector is rating the current business situation somewhat more positively than in previous months.
Source: Oxford Economics, vdw (German Machine Builders' Association)
Source: ifo Institute, Munich
Notes to the Interim Consolidated Financial Statements p. 27
Segments
corporate services
| gildemeister Aktiengesellschaft (Bielefeld) | |
|---|---|
| Turning Association | Milling Association | Milling and Processing Association |
|---|---|---|
| gildemeister Drehma schinen GmbH (Bielefeld) |
deckel maho Pfronten GmbH (Pfronten) |
deckel maho Seebach GmbH (Seebach) |
| graziano Tortona S.r.l. (Tortona / Italy) |
sauer GmbH (Idar-Oberstein, Pfronten) |
famot Pleszew Sp. z o.o. (Pleszew / Poland) |
gildemeister Italiana S.p.A. (Bergamo / Italy)
The gildemeister group including gildemeister Aktiengesellschaft comprised 106 entities as of 31 March 2013. Thus, when compared to 31 December 2012, the number of group companies has increased by one company: In March, a+f GmbH founded the gildemeister energy efficiency GmbH based in Stuttgart. This new company develops concepts and solutions for increasing the energy efficiency of industrial companies.
Sales revenues in the first quarter were € 466.1 million and thus exceeded the previous year's figure by € 14.3 million (€ 451.8 million).
In the "Machine tools" segment, sales revenues rose by € 10.8 million to € 270.4 million (previous year: € 259.6 million). Sales revenues in the "Industrial Services" segment reached € 195.6 million (previous year: € 192.1 million).
Domestic sales revenues were € 150.9 million, the group's international sales revenues rose by 17% to € 315.2 million. The export share rose to 68% (previous year: 59%).
4
Sales revenues
Order intake
Processing Association ecoline-Association Electronics dmg ecoline GmbH (Klaus / Austria) dmg Electronics GmbH (Pfronten) deckel maho gildemeister (Shanghai) Machine Tools Co., Ltd., (Shanghai / China) Ulyanovsk Machine Tools ooo (Ulyanovsk / Russia) industrial services Sales and Service locations worldwide (136) dmg / mori seiki Deutschland Stuttgart (8) dmg / mori seiki America Itasca / Illinois (4) * These markets are served and consolidated by our cooperation partner Mori Seiki.
| dmg / mori seiki Deutschland | dmg / mori seiki Europe | dmg / mori seiki Services | |||
|---|---|---|---|---|---|
| Stuttgart (8) | Dübendorf / Switzerland (33) | Bielefeld, Pfronten (22) | |||
| dmg / mori seiki America | dmg / mori seiki Asien | a+f GmbH | |||
| Itasca / Illinois (4) | Shanghai, Singapore (48) | Würzburg (6) | |||
| dmg / mori seiki usa* (10) | dmg / mori seiki Asia / Australia* (5) |
Order intake
Order intake in the first quarter was € 518.7 million and as expected was below the previous year's record figure (€ 605.1 million). Orders in the "Machine Tools" segment amounted to € 284.1 million; the previous year's quarter (€ 359.9 million) was marked by several major orders. Order intake for "Industrial Services" amounted to € 234.5 million (previous year: € 245.1 million), € 217.2 million (previous year: € 235.8 million) of this was attributable to Services. The sales of Mori Seiki machines are also accounted for here – the orders amounted to € 74.1 million. Order intake for Energy Solutions rose to € 17.3 million (previous year: 9.3 million).
Domestic orders amounted to € 163.7 million (previous year: € 223.6 million). They were affected by the general reluctance to invest in Germany. International orders amounted to € 355.0 million (previous year: € 381.5 million). The share of foreign business rose to 68% (previous year: 63%).
Events at the beginning of the year played a key role in the first quarter: At the traditional open house exhibition in Pfronten (29 Jan. – 2 Feb. 2013), we sold 574 machines worth € 150.5 million.
In the first quarter competitive pressure in some world markets further increased. In the individual market regions, order intake developed as follows:
On 31 March 2013, order backlog within the group was € 1,056.1 million (31 Dec. 2012: € 1,003.5 million). Domestic order backlog increased by € 12.8 million to € 265.0 million compared to the end of the year 2012. The backlog for international orders rose by € 39.8 million to € 791.1 million. International orders account for 75% of existing orders.
Due to unusually high sickness absence levels at the beginning of the year caused by a serious flu epidemic at our production sites, the order backlog could not yet be reduced.
Open house exhibition at deckel maho in Pfronten
gildemeister presented 72 exhibits at its traditional open house exhibition, including 6 world premieres.
Segments
p. 11 – 15
Order backlog Results of Operations, Net worth and Financial Position
The backlog development differed in the individual segments as follows:
"Machine Tools" "Industrial Services" 2007 2008 2009 2010 2011 31 march 2012 2012 31 march 2013 0 200 400 600 800 1,000 600.1 149.3 565.9 161.5 250.8 335.9 335.0 293.2 492.1 592.4 372.1 319.1 570.7 432.8 584.4 471.7 749.4 727.4 586.7 628.2 811.2 964.5 1,003.5 1,056.1
The order backlog for "Machine Tools" gives rise to a calculated production capacity utilisation of an average of approximately five months. The individual production companies show different capacity levels.
The profit situation of the gildemeister group developed constantly in the first quarter. ebitda was € 28.1 million (previous year: € 28.6 million), ebit reached € 17.0 million (previous year: € 18.8 million) and ebt was € 15.1 million (previous year: € 15.0 million). As at 31 March 2013, the group recorded earnings after taxes of € 10.4 million (previous year: € 10.3 million.
Sales revenues rose to € 466.1 million (previous year: € 451.8 million). Total operating revenue rose to € 496.3 million (previous year: € 486.9 million). The cost of materials amounted to € 280.3 million (previous year: € 275.3 million). The materials ratio was 56.5% (previous year: € 56.5%). Gross profit rose by € 4.4 million to € 216.0 million (previous year: € 211.6 million). Personnel expenses rose by € 5.5 million to € 114.3 million (previous year: € 108.8 million) and the personnel ratio was 23.0% (previous year: 22.3%).
The balance of other income and expenses amounted to € 73.6 million (previous year: € 74.2 million). Depreciation rose to € 11.1 million (previous year: € 9.8 million). The financial result improved in the first quarter to € – 1.9 million (previous year: € – 3.8 million). Earnings after taxes amounted to € 10.4 million (previous year: € 10.3 million), this results in a tax expense in the first quarter of € 4.7 million (previous year: € 4.7 million). The tax ratio is 31.0% (previous year: 31.5%).
| 31 march 2013 | 31 dec. 2012* | 31 march 2012* |
|---|---|---|
| € million | € million | € million |
| 579.6 | 564.6 | 537.3 |
| 1,045.6 | 1,056.0 | 1,003.5 |
| 799.4 | 775.2 | 725.7 |
| 825.8 | 845.4 | 815.1 |
| 1,625.2 | 1,620.6 | 1,540.8 |
* adjusted as a result of first time application of IAS 19 (rev. 2011)
As of 31 March 2013, balance sheet total amounted to € 1,625.2 million (31 Dec. 2012: € 1,620.6 million).
Under assets, long-term assets rose by € 15.0 million to € 579.6 million. This increase was mainly attributable to the valuation of shares in Mori Seiki Co., Ltd.
Short-term assets fell by € 10.4 million to € 1,045.6 million. Inventories rose by € 58.0 million to € 544.3 million. Raw materials, consumables and supplies rose to € 210.5 million (€ +10.2 million); this increase was mainly attributable to the takeover of Mori Seiki's spare parts business in Europe. Inventories of goods in progress rose to € 133.1 million (€ +10.0 million) and inventories of finished goods and merchandise rose to € 192.1 million (€ +35.5 million); this increase is a result of advance payments for the planned sales revenues and trade show machines. The turnover rate of inventories was 3.4 (previous year: 3.5). Trade debtors fell by € 6.0 million to € 222.6 million. Cash and cash equivalents amounted to € 102.1 million (31 Dec. 2012: € 173.3 million) due to the development of free cash flow. Under equity and liabilities, equity rose by € 24.2 million to € 799.4 million. The equity
Investments p. 10
Results of Operations, Net worth and Financial Position
ratio amounted to 49.2% (31 Dec. 2012: 47.8%). Outside capital fell to € 825.8 million (31 Dec. 2012: € 845.4 million). Provisions fell by € 10.0 million to € 246.6 million; this included, in particular, a decline in provisions for bonuses and premiums as well as provisions. Trade creditors fell by € 2.4 million to € 327.3 million.
The group's financial position developed in the first quarter as follows: Cash flow from operating activities amounted to € – 59.5 million (previous year: € – 74.0 million) as of 31 March 2013. Based on earnings before taxes (ebt) of € 15.1 million (previous year: € 15.0 million), depreciation (€ + 11.1 million) and the decline in trade debtors (€ + 5.8 million) contributed positively to cash flow. The increase in inventories of € 59.1 million and the decline in trade creditors of € 2.3 million reduced cash flow.
Cash flow from investment activity amounted to € – 11.4 million (previous year: € – 9.2 million). Cash flow from financing activity was € + 0.2 million (previous year: € + 40.7 million).
In the first quarter, free cash flow amounted to € – 69.3 million (previous year: € – 83.2 million); due to the known cyclicity of our business we are building up stock value in the first quarter for the planned sales revenues. In the second half of the year, we are expecting an increase in cash surpluses and also anticipating a positive free cash flow of more than € 75 million for the year as a whole.
As of 31 March 2013, we recorded a cash surplus of € 89.9 million (previous year net debt: € – 5.8 million) due to the development of cash flow.
| 2013 1st Quarter € million |
2012 1st Quarter € million |
|
|---|---|---|
| Cashflow | ||
| Cash flow from operating activities | – 59.5 | – 74.0 |
| Cash flow from investment activity | – 11.4 | – 9.2 |
| Cash flow from financing activity | 0.2 | 40.7 |
| Changes in cash and cash equivalents | – 71.2 | – 42.8 |
| Liquid funds at the start of the reporting period | 173.3 | 105.2 |
| Liquid funds at the end of the reporting period | 102.1 | 62.4 |
| b . 07 |
|---|
Investments in property, plant and equipment and in intangible assets amounted to € 10.6 million (previous year's figure: € 11.4 million) in the first three months. The new, state-of-the-art Spare Parts Center at our Geretsried site was completed in April. This step was an important element for a more rapid and efficient spare parts logistics service. Furthermore, we have also incorporated the supply of spare parts for Mori Seiki machines across Europe. Other focal points were the development of our innovative products and supply of tools, models and equipment required for production.
Capital inflow to financial assets amounted to € 1.6 million as a result of the increased shareholding in MG Finance GmbH of 33.0% to 42.55%. In the first three months, investments amounted to € 12.2 million in total (previous year's figure: € 11.4 million).
in %
Investments Segmental Reporting
Our business activities include the "Machine Tools" and "Industrial Services" segments. "Corporate Services" mainly comprise gildemeister Aktiengesellschaft with its groupwide holding functions.
The selected Mori Seiki machines produced by us under licence are included in "Machine Tools". The trade and services for Mori Seiki machines are booked under "Industrial Services".
The breakdown of sales revenues, order intake and ebit for the individual segments is presented as follows:
| of the gildemeister group | Changes 31 march 2013 | ||||
|---|---|---|---|---|---|
| 31 march 2013 | 31 dec. 2012 31 march 2012 | to 31 march 2012 | |||
| € million | € million | € million | € million | % | |
| Sales Revenues | 466.1 | 2,037.4 | 451.8 | 14.3 | 3 |
| Machine Tools | 270.4 | 1,175.0 | 259.6 | 10.8 | 4 |
| Industrial Services | 195.6 | 862.2 | 192.1 | 3.5 | 2 |
| Corporate Services | 0.1 | 0.2 | 0.1 | 0.0 | |
| Order Intake | 518.7 | 2,260.8 | 605.1 | – 86.4 | – 14 |
| Machine Tools | 284.1 | 1,253.6 | 359.9 | – 75.8 | – 21 |
| Industrial Services | 234.5 | 1,007.0 | 245.1 | – 10.6 | – 4 |
| Corporate Services | 0.1 | 0.2 | 0.1 | 0.0 | |
| ebit | 17.0 | 132.9 | 18.8 | – 1.8 | |
| Machine Tools | 7.8 | 69.3 | 2.2 | 5.6 | |
| Industrial Services | 16.7 | 88.4 | 21.7 | – 5.0 | |
| Corporate Services | – 7.1 | – 25.5 | – 4.8 | – 2.3 |
ebit in the "Machine Tools" and "Industrial Services" segments was affected by the change of the internal transfer pricing structures. Compared to the previous year, this leads to an improvement in ebit in the "Machine Tools" segment and to a decline in the "Industrial Services" segment. Thus preconditions were created to be able to invest more strongly in state-of-the-art production concepts and trendsetting product developments.
The "Machine Tools" segment is our core segment and includes the group's new machines business with the turning and milling, ultrasonic / lasertec, as well as ecoline and electronics business units.
| key figures "machine tools" segment |
Changes 31 march 2013 | ||||
|---|---|---|---|---|---|
| 31 march 2013 | 31 dec. 2012 | 31 march 2012 | to 31 march 2012 | ||
| € million | € million | € million | € million | % | |
| Sales revenues | |||||
| Total | 270.4 | 1,175.0 | 259.6 | 10.8 | 4 |
| Domestic | 78.2 | 396.9 | 79.8 | – 1.6 | – 2 |
| International | 192.2 | 778.1 | 179.8 | 12.4 | 7 |
| % International | 71 | 66 | 69 | ||
| Order intake | |||||
| Total | 284.1 | 1,253.6 | 359.9 | – 75.8 | – 21 |
| Domestic | 81.9 | 386.3 | 123.5 | – 41.6 | – 34 |
| International | 202.2 | 867.3 | 236.4 | – 34.2 | – 14 |
| % International | 71 | 69 | 66 | ||
| Order backlog | |||||
| Total | 584.4 | 570.7 | 592.4 | – 8.0 | – 1 |
| Domestic | 133.9 | 130.2 | 184.5 | – 50.6 | – 27 |
| International | 450.5 | 440.5 | 407.9 | 42.6 | 10 |
| % International | 77 | 77 | 69 | ||
| Investments | 7.1 | 47.6 | 6.8 | 0.3 | 4 |
| ebit | 7.8 | 69.3 | 2.2 | 5.6 | |
| Changes 31 march 2013 | |||||
| 31 march 2013 | 31 dec. 2012 | 31 march 2012 | to 31 dec. 2012 % |
||
| Employees | 3,346 | 3,293 | 3,252 | 53 | 2 |
| plus trainees | 193 | 221 | 176 | – 28 | – 13 |
| Total employees | 3,539 | 3,514 | 3,428 | 25 | 1 |
The "Machine Tools" segment developed as follows in the first quarter: Sales revenues reached € 270.4 million and thus in total were 4% above the comparable period in the previous year (€ 259.6 million). In the first quarter, the "Machine Tools" segment had a percentage share of turnover of 58% (previous year: 57%).
Segmental Reporting "Machine Tools" "Industrial Services"
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 amounted to € 284.1 million and thus was below the previous year's quarterly figure (€ 359.9 million), which was marked by several major orders. As of 31 March 2013, domestic order intake was affected by the general reluctance to invest in Germany. Domestic orders fell by 34% or € 41.6 million to € 81.9 million (previous year: € 123.5 million), while order intake abroad fell by 14% or € 34.2 million to € 202.2 million (previous year: € 236.4 million). "Machine Tools" accounted for 55% of all incoming orders in the group (previous year: 59%). Order backlog was € 584.4 million on 31 March (31 Dec. 2012: € 570.7 million). ebit rose to € 7.8 million (previous year: € 2.2 million). As of 31 March, the "Machine Tools" segment had 3,539 employees (31 Dec. 2012: 3,514).
The "Industrial Services" segment includes the divisions Services and Energy Solutions:
In the Services division, we have combined the sales and services activities for machine tools as well as all products linked to our machine tools. Assisted by dmg / mori seiki Life Cycle Services, our customers optimise the productivity rate of their machine tools over their entire life cycle – from machine commissioning right through to part exchange as a used machine. The wide range of training, repair and maintenance services offered to our customers ensures maximum cost-efficiency for their machine tools.
Energy Solutions comprises the five business units, Energy Efficiency, SunCarrier, Cellstrom, Service and Components. Its optimised product and service portfolio has a greater focus on new markets, as well as industrial customers and investors. In the first quarter 2013, we expanded our activities in the energy efficiency sector and are developing specific sets of measures for our customers which will help to decrease energy consumption.
| "industrial services" segment | Changes 31 march 2013 | ||||
|---|---|---|---|---|---|
| 31 march 2013 | 31 dec. 2012 | 31 march 2012 | to 31 march 2012 | ||
| € million | € million | € million | mio € | % | |
| Sales revenues | |||||
| Total | 195.6 | 862.2 | 192.1 | 3.5 | 2 |
| Domestic | 72.6 | 325.0 | 103.4 | – 30.8 | – 30 |
| International | 123.0 | 537.2 | 88.7 | 34.3 | 39 |
| % International | 63 | 62 | 46 | ||
| Order intake | |||||
| Total | 234.5 | 1,007.0 | 245.1 | – 10.6 | – 4 |
| Domestic | 81.7 | 349.3 | 100.0 | – 18.3 | – 18 |
| International | 152.8 | 657.7 | 145.1 | 7.7 | 5 |
| % International | 65 | 65 | 59 | ||
| Order backlog | |||||
| Total | 471.7 | 432.8 | 372.1 | 99.6 | 27 |
| Domestic | 131.1 | 122.0 | 93.4 | 37.7 | 40 |
| International | 340.6 | 310.8 | 278.7 | 61.9 | 22 |
| % International | 72 | 72 | 75 | ||
| Investments | 2.4 | 17.6 | 4.2 | – 1.8 | – 43 |
| ebit | 16.7 | 88.4 | 21.7 | – 5.0 | |
| 31 march 2013 | 31 dec. 2012 | 31 march 2012 | Changes 31 march 2013 | to 31 dec. 2012 % |
|
| Employees | 2,914 | 2,894 | 2,756 | 20 | 1 |
| plus trainees | 8 | 8 | 1 | 0 | 0 |
| Total employees | 2,922 | 2,902 | 2,757 | 20 | 1 |
Segmental Reporting "Industrial Services" "Corporate Services"
Sales revenues in the Industrial Services segment amounted to € 195.6 million (previous year: € 192.1 million). The Services sector recorded sales revenues of € 182.7 million (previous year: € 182.2 million). Sales revenues in the Energy Solutions division were € 12.9 million (previous year: € 9.9 million). In total, "Industrial Services" accounted for a 42% share of group sales revenues (previous year: 43%). Order intake amounted to € 234.5 million (previous year: € 245.1 million). "Industrial Services" accounted for 45% of incoming orders within the group (previous year: 41%). The share attributed to Services amounted to € 217.2 million (previous year: € 235.8 million), the Energy Solutions division contributed to this figure with € 17.3 million (previous year: € 9.3 million). Order backlog was € 471.7 million (31 Dec.2012: € 432.8 million). In the first three months, ebit amounted to € 16.7 million (previous year: € 21.7 million). It was influenced by the changes of the internal pricing structures – as described on page 11. At the end of the first quarter, the number of employees in the "Industrial Services" segment was 2,922 (31 Dec. 2012: 2,902).
| "corporate services" segment | Changes 31 march 2013 | |||
|---|---|---|---|---|
| 31 march 2013 | 31 dec. 2012 | 31 march 2012 | to 31 march 2012 | |
| € million | € million | € million | € million | |
| Sales Revenues | 0.1 | 0.2 | 0.1 | 0.0 |
| Order intake | 0.1 | 0.2 | 0.1 | 0.0 |
| Investments | 2.7* | 9.3 | 0.4 | 2.3 |
| ebit | – 7.1 | – 25.5 | – 4.8 | – 2.3 |
| *of which € 1.6 million capital inflow to financial assets | ||||
| Changes 31 march 2013 | ||||
| 31 march 2013 | 31 dec. 2012 | 31 march 2012 | to 31 dec. 2012 % |
The "Corporate Services" segment comprises gildemeister Aktiengesellschaft with its group-wide holding functions. ebit was € – 7.1 million (previous year: € – 4.8 million). This includes increased personnel and consultancy expenses as well as project costs for the development of the group. The financial result improved by € 1.6 million to € 1.3 million (previous year: € – 0.3 million). ebt was € – 5.8 million (previous year: € – 5.0 million).
On 31 March 2013, gildemeister had 6,548 employees, of which 201 were trainees (31 Dec. 2012: 6,496). Thus, the number of employees rose by 52. The increase in personnel was mainly a result of 25 trainees being taken on at our production sites in Germany, as well as the expansion of our sales and service companies. At the end of the first quarter, our domestic companies had 3,755 employees (57%) and our foreign companies had 2,793 employees (43%). Personnel expenses amounted to € 114.3 million (previous year's period: € 108.8 million). The personnel ratio was 23.0% (previous year's period: 22.3%).
At the beginning of the year the price of the gildemeister share was € 16.38 (2 Jan. 2013) and € 16.39 at the end of the first quarter 2013 (28 March 2013). The current share price is € 17.72 (2 May 2013). Actually the company is analysed by 14 banking institutes, five of which recommend buying the share and two advise to overweight. One bank recommends to accumulate the share and six analysts recommend to hold the paper.
* 04 January 2010 = 100, stock performances indexed, xetra stock prices / Source: Deutsche Börse Group ** An industry index has not been included due to a lack of comparability of the included shares in
relation to gildemeister Aktiengesellschaft.
b . 14
mdax®** january 2010 to may 2013
Employees gildemeister Share
For the first three months, based on the number of shares of 60.2 million, a turnover rate of 0.4 times (weighted previous year's period: 0.5 times) has been calculated. The trading volume averaged 368,000 shares per trading day (previous year: 422,000 shares).
On 20 March, gildemeister Aktiengesellschaft announced there were plans to further deepen its long-standing cooperation with Mori Seiki Co., Ltd., Nagoya (Japan). A corresponding cooperation agreement was signed by both companies on 20 March 2013. According to this agreement, Mori Seiki's stake in gildemeister is to be increased in the near term to 24.9% of the voting shares. gildemeister, in turn, has a right to increase its participation in Mori Seiki to 10.1%. The increase of Mori Seiki's stake in gildemeister is expected to take place through a combination of capital increases for cash and contributions in kind. In the first step, Mori Seiki is to contribute shares in companies in the important markets of the United States and Japan to gildemeister and in exchange is to receive a total of up to 3,247,162 new shares in gildemeister (up to approximately 5.40% of the existing share capital) through a capital increase for contributions in kind. In the second step, all shareholders will have the opportunity to participate in a capital increase for cash with subscription rights in order to continue to share in the development of gildemeister. The total amount of both capital increases will not exceed 30% of the current share capital. The planned deepening of their cooperation, including the measures described above, are subject to approval by the responsible competition authorities due to the resulting acquisition of control as defined in competition law.
In the first quarter, expenditure for research and development amounted to € 13.2 million (previous year: € 13.8 million). At our traditional open house exhibition at deckel maho Pfronten at the beginning of the year, we presented six world premieres – two of them are cooperation machines, the dixi 210 for high precisions cutting and the nlx 2500sy/700. In 2013 we are planning a total of 20 new developments, of these we develop five machines together with our partner Mori Seiki.
In the milling technology division, we have extended the product range of our ultraflexible 5-axis machines by adding an automatic pallet changer to the dmc 65 fd monoblock and expanding the dmu 125 fd monoblock as a universal machining centre – with an optional heavy-duty machining function. The dmc 80 h linear has been added to the series for maximum precision and highly dynamic machining in up to 5 axes.
In the turning technology division, the ctx beta 2000 completes the ctx series. This newly designed machine model is considered the next generation of the successful ctx 620 with enhancements made to the working space, main spindle and turret. As part of our successful cooperation with Mori Seiki, the universal turning machine, the nlx 2500 sy/700 was built for the European market at gildemeister Italiana S.p.A.
A total of 507 employees are working on developing our new products – this is 15% of the workforce at our plants. The 20 new developments for 2013 will be presented at 70 international and national trade shows, as well as open house exhibitions in the current year. Over the course of the year, the presentation of our world premieres will be focused on the industry highlight in September, the emo in Hanover. Besides 14 world premieres, we will also be presenting technological solutions for milling applications and innovative software tools – three new developments are made together with Mori Seiki.
DMC 80 H linear
25% more productivity and precision with an optional four or five-axis system as manufac-turing solution for the automotive industry.
The dmc 80 h linear was presented in February at the open house exhibition in Pfronten. The innovative linear motor technology used means maximum dynamics and permanent precision, e.g. for machining engine blocks and clutch housings.
Forecast Research and Development
forecast
Forecast
The world economy will continue to grow according to current forecasts. The Institute for the World Economy (IfW) is forecasting a 3.4% increase in global gross domestic product (gdp). China will maintain its position as the main driver of the world economy. According to current forecasts, gdp in the usa will continue to grow. Europe will face economic stagnation this year: Economic researchers are expecting the gdp of European countries to fall by 0.2% in 2013. Positive growth of 0.6% is being forecast for Germany.
The worldwide market for machine tools will still show a slight overall improvement in 2013. According to the most recent forecast of the German Machine Tool Builders' Association (vdw) and the British Economic Research Institute, Oxford Economics (status: April 2013), growth in world consumption is only expected to rise by 2.4% to € 67.9 billion. The growth rate was therefore revised down by more than 5 percentage points compared to the forecast in autumn (October 2012: + 7.6%).
Developments in individual markets are likely to diverge considerably from each other over the course of the year: In Asia, according to current forecasts, there should be a 3.9% rise in demand, making it higher than world consumption. Stable consumption (+ 0.5%) is being forecast for America. In contrast, demand in Europe is now likely to fall by 1.4%. For Germany a relatively stable consumption level (– 0.3%) is expected.
Source: vdw (German Machine Tool Builders' Association), Oxford Economics, Institute for World Economy (IfW)
As the largest foreign exhibitor, dmg and Mori Seiki exhibited jointly for the first time at the cimt. From 23 to 27 April 2013 33 machines were presented in live operation, six of which were Asia premieres. With order intake of € 56.6 million and 237 machines sold, gildemeister takes positive stock of the most important machine tool trade fair in Asia.
gildemeister intends to further extend its global market position, particularly in the fast-growing markets in Asia and Russia. Here we see future sales markets with growth potential. The planned expansion of the sales and service cooperation with Mori Seiki to the markets in China and Russia, as well to Canada and South America, will play a key role. With our international centers of excellence we are targeting at specific growing industries like the aerospace, automotive, medical technology and energy.
Our motto for the current financial year is: together. innovative. global. With this as our focal point, we will extent our cooperation with Mori Seiki. Our worldwide customers will benefit from an even wider range of services. We have set further important milestones in the company's long-term business strategy and will continue to increase our joint activities. With a continuing consistent service- and innovation-orientated company strategy we lay the foundation for consolidating our profitability and thus securing the company's future. The Energy Solutions division has been complemented by an energy efficiency advice service for industrial companies.
In financial year 2013, we are expecting that the stagnation in the European market and the reluctance to invest in Germany will continue. In comparison, further positive development is expected in the Asian and American markets, as well as in Russia.
We see potential in our innovations and the cooperation projects with Mori Seiki. In order to consolidate our cooperation, we are planning to increase the shareholdings in each other's companies over the course of the year.
Despite the increasing competitive pressure we stick to our targeted order intake for the whole year: Following the highest order intake in the history of the company in 2012, we are planning order intake of around € 2 billion for this year. A significant contribution to order intake shall be made during the upcoming leading trade fairs of the machine tools industry: At the Metalloobrabotka in Moscow (27 – 31 May 2013) we will present 18 high tech machines for the Russian market. The emo in Hanover
Machine Tools Consumption Future Business Development
(16 – 21 Sep. 2013) will play a key role in our international sales activities in the current year: As the largest exhibitor, dmg / mori seiki will be presenting 14 further world premieres to a wide range of trade visitors.
Based on current business developments and our order backlog sales revenues shall amount to around € 2 billion. In the current year, we will start to build up and expand our production capacities in strategically important markets. We are anticipating positive free cash flow of more than € 75 million for the whole of 2013.
Based on the premise that the market will develop as expected, we are planning to achieve ebt of around € 120 million and as a result, an annual net profit of around € 82 million. Subject to these developments, we are planning to make a dividend payout for financial year 2013.
The general economic conditions for 2014 are difficult to forecast at present. The vdw (German Machine Tool Builders' Association) and Oxford Economics are again predicting growth in worldwide machine tool consumption for 2014. If the world economy develops in line with current forecasts, we are expecting to achieve moderate growth in financial year 2014. We are constantly working towards increasing the flexibility of our cost structure and the production processes, in order to be able to respond to economic influences.
| d . 01 | |
|---|---|
| -------- | -- |
| 1st quarter | 2013 | 2012 | Changes | |||
|---|---|---|---|---|---|---|
| 01 jan. – 31 march | 01 jan. – 31 march | 2013 against 2012 | ||||
| € million | % | € million | % | € million | % | |
| Sales Revenues | 466.1 | 93.9 | 451.8 | 92.8 | 14.3 | 3.2 |
| Changes in finished goods and work in progress | 28.1 | 5.7 | 33.9 | 7.0 | – 5.8 | – 17.1 |
| Own work capitalised | 2.1 | 0.4 | 1.2 | 0.2 | 0.9 | 75.0 |
| Total Work Done | 496.3 | 100.0 | 486.9 | 100.0 | 9.4 | 1.9 |
| Cost of materials | – 280.3 | – 56.5 | – 275.3 | – 56.5 | – 5.0 | – 1.8 |
| Gross Profit | 216.0 | 43.5 | 211.6 | 43.5 | 4.4 | 2.1 |
| Personnel costs | – 114.3 | – 23.0 | – 108.8 | – 22.3 | – 5.5 | – 5.1 |
| Other income and expenses | – 73.6 | – 14.9 | – 74.2 | – 15.3 | 0.6 | 0.8 |
| Depreciation | – 11.1 | – 2.2 | – 9.8 | – 2.0 | – 1.3 | – 13.3 |
| Financial Result | – 1.9 | – 0.3 | – 3.8 | – 0.8 | 1.9 | 50.0 |
| ebt | 15.1 | 3.1 | 15.0 | 3.1 | 0.1 | |
| Income Taxes | – 4.7 | – 1.0 | – 4.7 | – 1.0 | 0.0 | |
| Earnings after taxes | 10.4 | 2.1 | 10.3 | 2.1 | 0.1 | |
| Profit share of shareholders of | ||||||
| gildemeister Aktiengesellschaft | 9.2 | 1.8 | 9.5 | 2.0 | –0.3 | |
| Profit share attributed to minority interests | 1.2 | 0.3 | 0.8 | 0.1 | 0.4 | |
| Earnings per share pursuant to ias 33 (in euros) | ||||||
| Undiluted | 0.16 | 0.16 | ||||
| Diluted | 0.16 | 0.16 |
d . 02
| 2013 01 jan. – 31 march |
2012* 01 jan. – 31 march |
|
|---|---|---|
| € million | € million | |
| Earnings after taxes | 10.4 | 10.3 |
| Other comprehensive income | ||
| Differences from currency translation | – 4.4 | – 5.8 |
| Changes in market value of derivative financial instruments | – 1.8 | 3.1 |
| Changes in the fair value measurement of available-for-sale assets | 19.5 | 5.7 |
| Actuarial gains / losses | 0.0 | –1.2 |
| Income tax expense on other comprehensive income | 0.5 | – 0.5 |
| Other comprehensive income for the period after taxes | 13.8 | 1.3 |
| Total comprehensive income for the period | 24.2 | 11.6 |
| Profit share of shareholders of GILDEMEISTER Aktiengesellschaft | 22.4 | 10.8 |
| Profit share attributed to minority interests | 1.8 | 0.8 |
* adjusted as a result at first time application of IAS 19 (rev. 2011)
d . 03
forecast
Consolidated Income Statement
Consolidated Balance Sheet
| assets | 31 march 2013 € million |
31 dec. 2012* € million |
31 march 2012* € million |
|---|---|---|---|
| Long-term assets | |||
| Goodwill | 119.6 | 119.5 | 113.5 |
| Other intangible assets | 66.1 | 65.1 | 63.5 |
| Tangible assets | 261.9 | 263.2 | 230.1 |
| Equity accounted investments | 9.5 | 7.6 | 7.0 |
| Other equity investments | 61.2 | 45.3 | 52.6 |
| Trade debtors | 1.1 | 0.5 | 2.9 |
| Receivables from associated companies | 0.0 | 0.0 | 4.7 |
| Other long-term financial assets | 8.4 | 9.8 | 12.5 |
| Other long-term assets | 3.9 | 4.1 | 1.1 |
| Deferred taxes | 47.9 | 49.5 | 49.4 |
| 579.6 | 564.6 | 537.3 | |
| Short-term assets | |||
| Inventories | 544.3 | 486.3 | 523.3 |
| Trade debtors | 208.3 | 195.6 | 244.8 |
| Receivables from at equity accounted companies | 6.0 | 12.0 | 5.1 |
| Receivables from related parties | 5.8 | 19.7 | 10.5 |
| Receivables from associated companies | 1.4 | 0.8 | 6.4 |
| Other short-term financial assets | 70.7 | 61.0 | 71.8 |
| Other short-term assets | 51.7 | 51.5 | 34.8 |
| Cash and cash equivalents | 102.1 | 173.3 | 62.4 |
| Long-term assets held for sale | 55.3 | 55.8 | 44.4 |
| 1,045.6 | 1,056.0 | 1,003.5 | |
| 1,625.2 | 1,620.6 | 1,540.8 |
Notes to the Interim Consolidated Financial Statements
* adjusted as a result of first time application of IAS 19 (rev. 2011)
| equity and liabilities | 31 march 2013 € million |
31 dec. 2012* € million |
31 march 2012* € million |
|---|---|---|---|
| Equity | |||
| Subscribed capital | 151.7 | 151.7 | 151.7 |
| Capital provision | 257.2 | 257.2 | 257.2 |
| Revenue provisions | 304.1 | 281.7 | 236.1 |
| Total equity of shareholders of | |||
| gildemeister Aktiengesellschaft | 713.0 | 690.6 | 645.0 |
| Minority interests' share of equity | 86.4 | 84.6 | 80.7 |
| Total equity | 799.4 | 775.2 | 725.7 |
| Long-term liabilities | |||
| Long-term financial debts | 3.1 | 3.2 | 14.5 |
| Pension provisions | 39.7 | 39.8 | 36.5 |
| Other long-term provisions | 20.0 | 19.9 | 17.3 |
| Trade creditors | 0.2 | 0.2 | 0.4 |
| Other long-term financial liabilities | 7.3 | 8.3 | 14.8 |
| Other long-term liabilities | 2.6 | 2.7 | 2.5 |
| Deferred taxes | 5.8 | 7.5 | 7.4 |
| 78.7 | 81.7 | 93.7 | |
| Short-term liabilities | |||
| Short-term financial debts | 9.1 | 9.1 | 53.7 |
| Tax provisions | 31.8 | 34.5 | 14.5 |
| Other short-term provisions | 155.1 | 162.4 | 144.3 |
| Payments received on account | 153.7 | 155.8 | 152.2 |
| Trade creditors | 230.7 | 264.5 | 251.7 |
| Liabilities to at equity accounted companies | 0.0 | 0.1 | 0.0 |
| Liabilities to associated companies | 23.7 | 8.9 | 10.4 |
| Liabilities to related parties | 72.7 | 56.0 | 20.1 |
| Other short-term financial liabilities | 21.9 | 25.9 | 33.3 |
| Other short-term liabilities | 37.1 | 35.6 | 29.8 |
| Liabilities in connection with assets held for sale | 11.3 | 10.9 | 11.4 |
| 747.1 | 763.7 | 721.4 | |
| 1,625.2 | 1,620.6 | 1,540.8 |
Notes to the Interim Consolidated * adjusted as a result of first time application of IAS 19 (rev. 2011)
Consolidated Balance Sheet
Consolidated Cash Flow Statement
d . 04
| 2013 01 jan. – 31 march € million |
2012 01 jan. – 31 march € million |
|
|---|---|---|
| cash flow from operating activities | ||
| Earnings before tax (ebt) | 15.1 | 15.0 |
| Income taxes | – 4.7 | – 4.7 |
| Depreciation | 11.1 | 9.8 |
| Change in deferred taxes | – 0.2 | – 4.2 |
| Change in long-term provisions | – 0.4 | 0.8 |
| Other income and expenses not affecting payments | – 0.1 | – 1.0 |
| Change in short-term provisions | – 10.0 | – 4.1 |
| Changes in inventories, trade debtors and other assets | – 61.4 | – 72.6 |
| Changes in trade creditors and other liabilities | – 8.9 | – 13.0 |
| – 59.5 | – 74.0 | |
| cash flow from investment activity | ||
| Amounts paid out for investments in intangible and tangible assets | – 10.6 | – 11.7 |
| Amounts paid out for investments in financial assets | – 1.6 | 0.0 |
| Cash inflows on disposal of the property, plant and equipment | 0.8 | 2.5 |
| – 11.4 | – 9.2 | |
| cash flow from financing activity | ||
| Cash inflows for borrowings | 0.2 | 36.5 |
| Cash outflows for changes in interests of subsidiaries | 0.0 | – 2.5 |
| Changes to consolidated companies | 0.0 | 6.7 |
| 0.2 | 40.7 | |
| Changes affecting payments | – 70.7 | – 42.5 |
| Effects of exchange rate changes on financial securities | – 0.5 | – 0.3 |
| Cash and cash equivalents at the beginning of the period | 173.3 | 105.2 |
| Cash and cash equivalents at the end of the period | 102.1 | 62.4 |
| Consolidation measures / Other changes |
0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
|---|---|---|---|---|---|---|
| Total comprehensive income | 0.0 | 0.0 | 22.4 | 22.4 | 1.8 | 24.2 |
| As at 1 Jan. 2013 | 151.7 | 257.2 | 281.7 | 690.6 | 84.6 | 775.2 |
| 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 31 March 2012 | 151.7 | 257.2 | 236.1 | 645.0 | 80.7 | 725.7 |
|---|---|---|---|---|---|---|
| Other changes | 0.0 | 0.0 | 0.0 | 0.0 | 67.8 | 67.8 |
| Consolidation measures / | ||||||
| Total comprehensive income | 0.0 | 0.0 | 10.8 | 10.8 | 0.8 | 11.6 |
| As at 1 Jan. 2012 | 151.7 | 257.2 | 225.3 | 634.2 | 12.1 | 646.3 |
| € million | € million | € million | € million | € million | € million | |
| capital | provision | provisions* | Aktiengesellschaft | of equity | equity | |
| Subscribed | Capital | Revenue | gildemeister | share | Total | |
| Total equity of shareholders of |
Minority interests' |
Notes to the Interim Consolidated Financial Statements
p. 27
* adjusted as a result of first time application of IAS 19 (rev. 2011)
segmentation by business divisions
| 1st quater 2013 | Machine Tools € million |
Industrial Services € million |
Corporate Services € million |
Transitions € million |
Group € million |
|---|---|---|---|---|---|
| Sales revenues | 270.4 | 195.6 | 0.1 | 0.0 | 466.1 |
| ebit | 7.8 | 16.7 | – 7.1 | – 0.4 | 17.0 |
| Investments | 7.1 | 2.4 | 2.7 | 0.0 | 12.2 |
| Employees | 3,539 | 2,922 | 87 | 0 | 6,548 |
| 1st quater 2012 | Machine Tools € million |
Industrial Services € million |
Corporate Services € million |
Transitions € million |
Group € million |
|---|---|---|---|---|---|
| Sales revenues | 259.6 | 192.1 | 0.1 | 0.0 | 451.8 |
| ebit | 2.2 | 21.7 | – 4.8 | – 0.3 | 18.8 |
| Investments | 6.8 | 4.2 | 0.4 | 0.0 | 11.4 |
| Employees | 3,428 | 2,757 | 74 | 0 | 6,259 |
Group Segmental Reporting
Notes to the Interim Consolidated Financial Statements
1 application of regulations
The interim consolidated financial statements of gildemeister Aktiengesellschaft as of 31 March 2013 were prepared, as were the Consolidated Financial Statements of the year ending 31 December 2012, in accordance with the International Financial Reporting Standards (ifrs) applicable on the reporting date and in accordance with the interpretation of the above standards; 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 2012.
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 compared to financial year 2012 with one exception (for further information, please see the explanations in the Notes to the Consolidated Financial Statements as of 31 December 2012).
The revised version of ias 19 (revised 2011) must always be applied retrospectively to financial statements for financial years starting on or after 1 January 2013. The amendments in ias 19 resulted in the following material effects:
In the past, gildemeister used the corridor method. With the abolition of the corridor method, actuarial gains and losses have a direct impact on the consolidated balance sheet and lead to an increase in pension provisions, as well as a decline in equity adjusted to account for deferred tax assets. As of 31 March 2012, pension provisions were adjusted in an amount of € 14.5 million and as of 31 December 2012 in an amount of € 18.2 million. As at 31 March 2012, equity fell – taking into consideration deferred taxes – by € 10.2 million and as of 31 December 2012, by € 12.8 million.
According to ias 19 (revised 2011), the top-up payments agreed in the partial retirement agreements now represent other long-term employee benefits. The top-up payments can thus no longer be fully recognised as liabilities with their cash value, but the top-up payments are accumulated proportionally over the corresponding active years of service of the employee benefitting from partial retirement. This leads to a reduction in partial retirement provisions. As of 31 March 2012, the provisions were reduced by € 0.6 million and as of 31 December 2012, by € 0.3 million. The effects on the consolidated income statement and earnings per share as at 31 March 2012 are deemed immaterial.
On 31 March 2013, the gildemeister group, including gildemeister Aktiengesellschaft, comprised 106 companies, 103 of which were included in the Interim Financial Statements as part of the full consolidation process. Compared to 31 December 2012, the number of group companies rose by one company. In March, a+f GmbH, Würzburg, founded the gildemeister energy efficiency GmbH based in Stuttgart. This new company, in which a+f GmbH holds 60%, develops ideas and solutions for increasing energy efficiency for industrial companies. This does not affect comparability with the consolidated financial statements as of 31 December 2012. 2 consolidation group
With no change to the consolidated financial statements 2012, dmg / mori seiki Australia Pty. Ltd. and sun carrier omega Pvt. Ltd. have been classified as a joint venture and accounted for as at equity in the consolidated financial statements. In February, gildemeister increased its interest in mg Finance GmbH from a previous 33.0% to 42.55%. mg Finance GmbH has still been classified as an associate and also accounted for as 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 € 10.4 million are decreased by € 1.2 million by the minority interests' earnings. 3 earnings per share
d . 07
| Group result excluding the profit share of the shareholders | €k | 9,251 |
|---|---|---|
| Average weighted number of shares (pieces) | 58,363,195 | |
| Earnings per share acc. to IAS 33 | € | 0.16 |
4 income statement, balance sheet, cash flow statement
Detailed explanations of the income statement, the balance sheet and the cash flow statement can be found in the section "Results of Operations, Net Worth and Financial Position" on page 7 et seq.
Comprehensive income as of 31 March of € 24.2 million comprised earnings after taxes (€ 10.4 million) and "other comprehensive income for the period after taxes" (€ 13.8 million). A significant influential factor was the change arising from the valuation of financial assets held for sale. The change in the fair values of financial derivatives and currency translation differences reduced comprehensive income. Seasonally-related income and expenses, respectively those distributed unevenly over the financial year did not have any significant material effect.
Notes to the Interim Consolidated Financial Statements
Equity rose by € 24.2 million in total to € 799.4 million. Minority interests in equity rose by € 1.8 million to € 86.4 million. An increase in equity resulted from group earnings as of 31 March 2013 in an amount of € 10.4 million and changes in the value of financial assets held for sale in an amount of € 19.5 million. A decrease in equity resulted from changes in the fair value of financial derivatives amounting to € – 1.8 million, as well as from the currency changes recognised directly in equity. 6 development of group equity
Within the scope of segmental reporting, pursuant to the ifrs 8 regulations, the business activities of the gildemeister group have been divided into the "Machine Tools", "Industrial Services" and "Corporate Services" business segments. The segmentation corresponds to the group's internal controls and reporting based on different products and services. The Mori Seiki machines produced under licence are included in "Machine Tools"; the business with Mori Seiki products will be accounted for under "Industrial Services". The demarcation of the segments and presentation of segment results remain unchanged from 31 December 2012. 7 segmental reporting Segments p. 11 – 15
8 statement of relations to related companies and persons
Material changes as of 31 March 2013 have not occurred. As presented in the notes to the financial statements as of 31 December 2012, numerous business relations continue to exist with related parties and persons which are conducted on the basis of standard market terms and conditions.
9 events occurring after the balance sheet date
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 interim financial statements.
Bielefeld, 7 May 2013 gildemeister Aktiengesellschaft The Executive Board
Dipl.-Kfm. Dr. Rüdiger Kapitza Dipl.-Kfm. Dr. Thorsten Schmidt
Dipl.-Kffr. Kathrin Dahnke Dipl.-Ing. Günter Bachmann
Dipl.-Kfm. Christian Thönes Dipl.-Kfm. Dr. Maurice Eschweiler
Supervisory Board: Hans Henning Offen, Chairman
| Cover | ||
|---|---|---|
| 01 | Key figures on business development | I |
| 02 | Sales revenues | II |
| 03 | Order intake | II |
| 04 | ebit | II |
| 05 | Number of employees | II |
| a . 01 | Exchange rate movements euro in relation to us dollar, yen and renminbi | 2 |
|---|---|---|
| a . 02 | ifo business climate | 3 |
| b . 01 | gildemeister group structure | 4 |
|---|---|---|
| b . 02 | Sales revenues gildemeister group | 4 |
| b . 03 | Order intake gildemeister group | 5 |
| b . 04 | Order intake gildemeister group by regions | 6 |
| b . 05 | Order backlog gildemeister group | 7 |
| b . 06 | Net worth | 8 |
| b . 07 | Cash flow | 9 |
| b . 08 | Contribution of each segment to investments | 10 |
| b . 09 | Segment key figures of the gildemeister group | 11 |
| b . 10 | Key figures "Machine Tools" segment | 12 |
| b . 11 | Distribution of sales revenues by segments within the gildemeister group | 13 |
| b . 12 | Key figures "Industrial Services" segment | 14 |
| b . 13 | Key figures "Corporate Services" segment | 15 |
| b . 14 | The gildemeister share in comparison with the mdax® January 2010 to May 2013 | 16 |
| d . 01 | Consolidated Income Statement | 22 |
|---|---|---|
| d . 02 | Group Statement of Comprehensive Income | 22 |
| d . 03 | Consolidated Balance Sheet | 23 |
| d . 04 | Consolidated Cash Flow Statement | 25 |
| d . 05 | Development of Group Equity | 26 |
| d . 06 | Group Segmental Reporting | 26 |
| d . 07 | Earnings per share | 28 |
| 17 may 2013 | Annual General Meeting at |
|---|---|
| 10.00 am in Town Hall, Bielefeld | |
| 25 july 2013 | Second Quarterly Report 2013 |
| (1 April to 30 June) | |
| 29 october 2013 | Third Quarterly Report 2013 |
| (1 July to 30 September) | |
| 16 may 2014 | Annual General Meeting at |
| 10.00 am in the Town Hall, Bielefeld | |
Subject to alteration
gildemeister Aktiengesellschaft Gildemeisterstraße 60 d-33689 Bielefeld
André Danks Nadja Sölter Telephone: + 49 (0) 52 05 / 74 - 3028 Telephone: + 49 (0) 52 05 / 74 - 3001 Telefax: + 49 (0) 52 05 / 74 - 3273 Telefax: + 49 (0) 52 05 / 74 - 3081 E-Mail: [email protected] E-Mail: [email protected]
| 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. | |
| Latest information: | Twitter-Account @gildemeisterag |
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.
gildemeister Aktiengesellschaft Gildemeisterstraße 60 d-33689 Bielefeld Local Court Bielefeld hrb 7144 Phone: +49 (0) 52 05 / 74-3001 Fax: +49 (0) 52 05 / 74-3081 Internet: www.gildemeister.com E-Mail: [email protected]
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