Quarterly Report • Oct 29, 2015
Quarterly Report
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3rd Quarter 2015
dmg mori aktiengesellschaft completed the first nine months of the financial year 2015 according to plan. As at 30 September, we were able to increase sales revenues by 6% to € 1,648.8 million (previous year: € 1,562.4 million). We made good on more ground in the third quarter; order intake was slightly higher than in the previous year at € 1,742.0 million (previous year: € 1,740.8 million). ebitda amounted to € 151.9 million (+4%; previous year: € 145.9 million), ebit reached € 111.5 million (previous year: € 111.7 million) and ebt climbed to € 108.8 million (+2%; previous year: € 106.7 million). As at 30 September 2015, the group recorded earnings after taxes of € 75.1 million (+2%; previous year: € 73.7 million). Positive impulses were largely received from the Asian markets China and Korea. In Europe, we recorded a rise in the demand for machine tools foremost in Italy and France.
Together with our Japanese partner dmg mori company limited we will continue to further concentrate on optimising the international sales and service structures. Upon the opening of our most modern production and assembly plant in Ulyanovsk (Russia) in late September, we have set a further milestone: "Made in Russia for Russia" – with this aim, dmg mori produces in Russia technologically high-quality turning and milling machines of the ecoline series. Likewise, the construction of our new technology centres in Moscow and in Seoul (Korea) is progressing on schedule. Upon completion of these construction projects by 2016, we will substantially reduce the investment level.
The overall economic dynamics in the third quarter have slowed down. In particular, the declines of the growth rates in China as well as the recession in key emerging countries burden the global economy. We believe that the global economic development will remain volatile overall. Due to the difficult market environment and the present postponement of investments we are now planning an order intake from € 2.3 to € 2.4 billion for the current financial year. We confirm our annual forecast: Sales revenues should amount to around € 2.25 billion. In the fourth quarter, we still expect rising sales and earnings contributions. On the assumption that the market development will continue according to our expectations, we plan to achieve ebit of around € 165 million and ebt of around € 160 million for the complete year. Furthermore, we continue to assume a positive free cash flow between € 10 million and € 20 million. Provided that these figures are achieved, we plan to pay a dividend for the financial year 2015.
key figures The interim consolidated financial statements of dmg mori 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 and refer exclusively to the dmg mori aktiengesellschaft and its affiliated group companies (in the following referred to as the dmg mori group).
| dmg mori group | Changes 30 Sep. 2015 | ||||
|---|---|---|---|---|---|
| 30 Sep. 2015 | 31 Dec. 2014 | 30 Sep. 2014 | to 30 Sep. 2014 | ||
| Sales revenues | € million | € million | € million | € million | % |
| Total | 1,648.8 | 2,229.0 | 1,562.4 | 86.4 | 6 |
| Domestic | 550.1 | 779.2 | 551.9 | –1.8 | 0 |
| International | 1,098.7 | 1,449.8 | 1,010.5 | 88.2 | 9 |
| % International | 67 | 65 | 65 | ||
| Order intake | |||||
| Total | 1,742.0 | 2,331.4 | 1,740.8 | 1.2 | 0 |
| Domestic | 600.5 | 814.5 | 628.6 | –28.1 | –4 |
| International | 1,141.5 | 1,516.9 | 1,112.2 | 29.3 | 3 |
| % International | 66 | 65 | 64 | ||
| Order backlog | |||||
| Total | 1,009.7 | 1,134.3 | 1,210.3 | –200.6 | –17 |
| Domestic | 363.2 | 312.8 | 354.2 | 9.0 | 3 |
| International | 646.5 | 821.5 | 856.1 | –209.6 | –24 |
| % International | 64 | 72 | 71 | ||
| Investments | 80.1 | 159.0 | 100.5 | –20.4 | –20 |
| of which tangible assets / intangible assets |
80.1 | 136.9 | 78.6 | ||
| Personnel costs | 404.7 | 506.1 | 371.4 | 33.3 | 9 |
| Personnel ratio in % | 23.6 | 22.4 | 22.8 | ||
| ebitda | 151.9 | 232.5 | 145.9 | 6.0 | 4 |
| ebit | 111.5 | 182.6 | 111.7 | –0.2 | 0 |
| ebt | 108.8 | 175.3 | 106.7 | 2.1 | 2 |
| Earnings after taxes | 75.1 | 121.1 | 73.7 | 1.4 | 2 |
| Changes 30 Sep. 2015 to 31 Dec. 2014 |
|||||
| 30 Sep. 2015 | 31 Dec. 2014 | 30 Sep. 2014 | % | ||
| Employees | 7,049 | 6,918 | 6,887 | 131 | 2 |
plus trainees 312 248 244 64 26 Total employees 7,361 7,166 7,131 195 3
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 – 27 | Group Interim Management Report | |
| 2 | Overall Economic Development | |
| 3 | Development of the Machine Tool Industry | |
| 4 – 19 | Business Development of the dmg mori Group | |
| 4 | Sales Revenues | |
| 5 | Order Intake | |
| 6 | Order Backlog | |
| 7 | Results of Operations, Net Worth and Financial Position | |
| 9 | Investments | |
| 11 | Segmental Reporting | |
| "Machine Tools" 12 |
||
| "Industrial Services" 13 |
||
| "Corporate Services" 15 |
||
| 16 | Employees | |
| 16 | Share | |
| 18 | Research and Development | |
| 20 – 24 | Opportunities and Risk Management Report | |
| 25 – 27 | ||
| 27 | Forecast General Statement on Future Business Development 2016 |
|
| 28 – 41 | Interim Consolidated Financial Statements | |
| of dmg mori aktiengese llschaft |
||
| as at 30 September 2015 | ||
| 28 | Consolidated Income Statement | |
| 29 | Consolidated Statement of other Comprehensive Income | |
| 30 | Consolidated Balance Sheet | |
| 32 | Consolidated Cash Flow Statement | |
| 33 | Development of Group Equity | |
| 34 | Group Segmental Reporting | |
| 36 | Selected Explanatory Notes to the Interim | |
| Consolidated Financial Statements | ||
| 40 | Details of dmg mori aktiengesellschaft | |
| 41 | Responsibility Statement | |
| 42 – 43 | Additional Information | |
| 42 | List of Tables and Charts |
Financial Calendar
The overall economic dynamics have slowed down in the third quarter of 2015. The declines of the growth rates in China, as well as the recession in important emerging countries – such as Russia and Brazil – burden the global economy. Growth impulses continue to be received from the usa and Europe.
In China, the economic growth was most recently on the decline. To an increasing measure, this also affects the economic development of Japan and the advanced national economies of South East Asia. The us economy most recently accelerated its growth; the current economic indicators suggest a further rise of industrial production. Europe is on a road of slow economic recovery. Positive impulses were set recently by Great Britain, Spain and by the Eastern European countries of the eu. The German economy followed on a modest upward trend. The economic barometer of the German Institute for Economic Research (diw Berlin) estimates that growth in the third quarter will be 0.4% compared to the second quarter.
The international business of dmg mori aktiengesellschaft is influenced by the exchange rates of the euro. Particularly important are the U.S. dollar, the Chinese renminbi, the Japanese yen, and the Russian rouble. The euro, relative to these currencies, developed unevenly during the third quarter 2015 compared to the value in the previous quarter. Compared to the median value of the euro, the U.S. dollar was at usd 1.11 (previous year's quarter: usd 1.33). Thus, the euro fell by 16.1% compared to the usd. The median value of the Chinese renminbi was noted at 7.01 renminbi (previous year's quarter: 8.17 renminbi) and the euro thus fell by 14.3% compared to the renminbi. Compared to the median value of the rouble, the median value of the euro rose substantially by 46.3% and it was noted at 70.3 rouble (previous year's quarter: 48.1 rouble). For customers in the usa, in dollardependent markets as well as in China, prices for the products from our European manufacture have thus become cheaper meanwhile prices in the Russian markets have risen significantly.
The median value of the yen rose by 1.4% compared to the euro and it was noted at 135.9 yen (previous year's quarter: 137.8 yen).
Sources: German Economic Research Institute (diw), Berlin; ifo Economic Research Institute (ifo), Munich; Institute for World Economics (IfW), Kiel
Sources: European Central Bank, Deutsche Bundesbank (German Federal Bank)
Overall Economic Development Development of the Machine Tool Industry
The worldwide market for machine tools will decline in the year 2015 according to the latest forecasts. The German Machine Tool Builders' Association (vdw) and the British economic research institute Oxford Economics expect in their latest forecast (status: October 2015) a decline in global consumption by 4.3% to € 59.3 billion (forecast of April 2015: + 3.3% to € 64.0 billion). In Asia, stronger declines this year are expected especially in China (– 11.6%), while a substantial rise in consumption is expected in Japan (+ 23.0%). In America, the usa will probably record a stagnation (+ 0.4%); in Brazil, consumption is expected to decline further significantly (– 19.0%). In Europe, Spain (+ 12.6%) and Italy (+ 4.6%) will continue on their road to recovery. In Russia (– 35.3%) a considerable decline in consumption continues to be expected. Consumption in Germany will likely be slightly lower (– 0.3%) in the year 2015.
The ifo business climate index for commercial economy has slightly cooled down in September. The expectations of the buyer industries for the further business development have fallen most recently. The evaluations of the present business situation continue to be positive.
Source: ifo Institut, Munich
corporate services
gildemeister Beteiligungen GmbH (Bielefeld)
S.p.A. (Bergamo / Italy)
As of 30 September 2015, the dmg mori group, including dmg mori aktiengesellschaft comprised 100 companies. Compared to 30 June 2015, the number of group companies did not change.
Sales revenues in the third quarter rose to € 558.6 million (+ 6%; previous year: € 528.0 million). In the first nine months, sales revenues rose to € 1,648.8 million and were thereby 6% above the previous year's value (previous year: € 1,562.4 million).
In the "Machine Tools" segment, sales revenues rose by € 29.1 million to € 892.4 million (+ 3%; previous year: € 863.3 million). Sales revenues in the "Industrial Services" segment increased by € 57.3 million to € 756.2 million (+ 8%; previous year: € 698.9 million).
International sales of the group rose by 9% to € 1,098.7 million. Domestic sales amounted to € 550.1 million. The export quota amounted to 67% (previous year: 65%).
in € million
Segments p. 11 – 15 Sales Revenues Order Intake
5
| industrial services | ||||
|---|---|---|---|---|
| Sales and Service locations worldwide (159) | ||||
| ecoline Association | Electronics | Systems | dmg Holding ag Switzerland |
dmg Vertriebs und Service GmbH deckel maho gildeme ister |
| dmg mori ecoline ag (Winterthur / Switzerland) |
dmg Electronics GmbH (Pfronten) |
dmg mori Systems GmbH (Wernau, Hüfingen) |
dmg mori Europe Winterthur (Switzerland) (39) |
dmg mori Germany Stuttgart (8) |
| famot Pleszew Sp. z o.o. (Pleszew / Poland) |
dmg mori Asia Shanghai, Singapore (62) |
dmg mori Services Bielefeld, Pfronten (24) |
||
| deckel maho gildemeister (Shanghai) Machine Tools Co., Ltd., (Shanghai / China) |
dmg mori America Itasca (Illinois) (21) |
gildeme ister energy solutions GmbH Würzburg, Stuttgart (5) |
||
| Ulyanovsk Machine Tools ooo |
We made good on more ground in the third quarter; order intake amounted to € 538.7 million and was thus above the value of the previous year (€ 530.7 million). In the "Machine Tool" segment, order intake was € 300.9 million (previous year: € 277.6 million). The "Industrial Services" segment recorded order intake of € 237.7 million (previous year: € 253.0 million). This figure includes orders for machines of dmg mori company limited in the amount of € 81.3 million (previous year: € 102.9 million); in the previous year's quarter, they profited from above-average orders received at the autumn fairs. The service business (e.g. spare parts, maintenance and repair) developed positive at € 119.5 million (previous year: € 108.0 million). Order intake in Energy Solutions amounted to € 14.3 million (previous year: € 8.5 million).
As at 30 September, order intake reached € 1,742.0 million (previous year: € 1,740.8 million). This includes orders in the amount of € 315.3 million for machines of dmg mori company limited (previous year: € 309.4 million). Orders from the domestic market amounted to € 600.5 million (previous year: € 628.6 million). International orders amounted to € 1,141.5 million (previous year: € 1,112.2 million). The quota of international orders was 66% (previous year: 64%). Positive impulses were largely received from the Asian markets China and Korea. In Europe, we recorded a rise in the demand for machine tools foremost in Italy and France.
Segments p. 11 – 15
(Ulyanovsk / Russia)
In the individual market regions, order intake developed as follows:
The order backlog at the group amounted to € 1,009.7 million as at 30 September 2015 (31 Dec. 2014: € 1,134.3 million).
The order backlog for "Machine Tools" gives rise to a forward order book of an average of 4.5 months. In this respect, the individual production companies show different degrees of capacity utilisation.
Overall, the domestic order backlog rose by € 50.4 million to € 363.2 million compared to year's end 2014. The backlog of international orders reduced by € 175.0 million to € 646.5 million. Of the present order backlog, 64% are allocated to foreign countries.
and risk report forecast
Order Intake Order Backlog Results of Operations,
Position
Net Worth and Financial
The backlog developed in the individual segments as follows:
in € million
"Machine Tools" "Industrial Services" 0 500 1,000 2009 2010 2011 2012 2013 30 Sep. 2014 2014 30 Sep. 2015 576.5 433.2 1,009.7 586.7 628.2 811.2 250.8 335.9 335.0 492.1 319.1 1,003.5 570.7 432.8 1,031.9 532.0 499.9 1,210.3 648.3 562.0 1,134.3 530.1 604.2 293.2
Key income figures of the dmg mori group developed as follows in the third quarter: ebitda rose to € 57.0 million (previous year: € 55.7 million), ebit amounted to € 43.1 million (previous year: € 43.9 million) and ebt reached € 43.1 million (previous year: € 42.1 million).
As at 30 September, ebitda amounted to € 151.9 million (previous year: € 145.9 million), ebit amounting to € 111.5 million was at the same level as in the previous year (previous year: € 111.7 million) and ebt rose to € 108.8 million (previous year: € 106.7 million). As at 30 September 2015, the group reported earnings after taxes of € 75.1 million (previous year: € 73.7 million).
Sales revenue as at 30 September rose by € 86.4 million to € 1,648.8 million (previous year: € 1,562.4 million). Total operating revenue increased by € 80.9 million to € 1,712.1 million (previous year: € 1,631.2 million). The materials ratio amounted to 52.1% (previous year: 53.6%). The cost of materials increased to € 892.3 million (previous year: € 873.7 million) with higher total operating revenue. Gross income rose by € 62.3 million to € 819.8 million (previous year: € 757.5 million). Personnel expenses rose, due to the increased number of employees, to € 404.7 million (previous year: € 371.4 million). The personnel expense ratio was 23.6% (previous year: 22.8%).
The balance of other income and expenses amounted to € 263.2 million (previous year: € 240.2 million). This increase is essentially due to sales revenue-dependent expenses. Depreciation amounted to € 40.4 million (previous year: € 34.2 million). The financial result as at 30 September was € – 2.7 million (previous year: € – 5.0 million). As at 30 September 2015, tax expenses were € 33.7 million. The tax ratio amounted to 31.0% (previous year: 30.9%). This led to earnings after taxes of € 75.1 million (previous year: € 73.7 million).
b . 06
| 30 Sep. 2015 € million |
31 Dec. 2014 € million |
30 Sep. 2014 € million |
|
|---|---|---|---|
| Net worth | |||
| Long-term assets | 935.1 | 880.0 | 843.8 |
| Short-term assets | 1,239.9 | 1,349.8 | 1,208.7 |
| Equity | 1,310.3 | 1,266.1 | 1,234.6 |
| Outside capital | 864.7 | 963.7 | 817.9 |
| Balance sheet total | 2,175.0 | 2,229.8 | 2,052.5 |
The balance sheet total as at 30 September 2015 was € 2,175.0 million (31 Dec. 2014: € 2,229.8 million).
Under assets, long-term assets increased by € 55.1 million to € 935.1 million. Due to our construction projects, fixed assets rose to € 443.3 million (31 Dec. 2014: € 395.2 million). Intangible assets amounted to € 205.7 million (31 Dec. 2014: € 214.0 million). Financial assets increased to € 212.5 million (31 Dec. 2014: € 201.7 million). The increase results in particular from the valuation of shares in dmg mori company limited at the reporting date.
Short-term assets amounted to € 1,239.9 million (31 Dec. 2014: € 1,349.8 million). Inventories rose by € 80.9 million to € 576.2 million. Raw materials and consumables increased by € 15.6 million to € 206.3 million. The stock of unfinished goods increased to € 126.4 million (€ + 18.3 million) and the finished goods rose to € 238.7 million (€ +45.4 million). The increase in finished goods especially results from preliminary work for planned sales revenues in the fourth quarter and the equipment of our technology centres with demonstration machines. The turnover rate of inventories was 3.8 (previous year's period: 3.7). Trade debtors increased, as sales revenues increased and the factoring volume was reduced, by € 35.8 million to € 296.1 million. Liquid funds decreased to € 197.5 million (31 Dec. 2014: € 433.0 million).
Under equity and liabilities, equity rose by € 44.2 million to € 1,310.3 million (31 Dec. 2014: € 1,266.1 million). The increase is in particular owing to the earnings after taxes amounting to € 75.1 million. The minority interests' share of equity amounted to € 141.2 million (31 Dec. 2014: € 134.7 million). The equity ratio rose to 60.2% (31 Dec. 2014: 56.8%). Outside capital decreased by € 99.0 million to € 864.7 million. Provisions amounted to € 283.9 million (31 Dec. 2014: € 276.6 million) and trade creditors declined as planned by € 117.6 million to € 297.6 million.
The group's financial position developed as follows: As at 30 September, cash flow from operating activities was € –128.0 million (previous year: € –121.9 million). Based on earnings before taxes (ebt) of € 108.8 million (previous year: € 106.7 million), depreciations (€ +40.4 million) and the rise in provisions (€ +7.3 million) made a positive contribution to cash flow. The rise in inventories by € 81.2 million and in trade debtors by € 36.8 million and the planned decline in trade creditors by € 109.0 million reduced cash flow.
Cash flow from investment activity amounted to € –86.9 million (previous year: € –96.1 million). Payments for investments in plant, property and equipment and in
p. 30
Balance Sheet
Investments p. 9
Results of Operations, Net Worth and Financial Position Investments
intangible assets were € 89.1 million (previous year: € 78.6 million), the key points were the construction projects that have been started in the previous years and announced in the course of our capital increase with subscription rights in 2013. There were no payments for investments in financial assets.
Cash flow from financing activity amounted to € –21.6 million (previous year: € 11.0 million) and was due to the change in financial liabilities (€ +21.8 million) and the dividend payment (€ –43.4 million) in May 2015.
As at 30 September 2015, free cash flow amounted to € –191.9 million (previous year: € –198.8 million); this trend is primarily due to the increase in inventory because of the cyclical nature of our business for planned sales activities.
In the third quarter, free cash flow amounted to € 4.4 million (previous year's quarter: € –52.7 million). The ebt of € 43.1 million and the decline in inventories by € 8.9 million and the increase of provisions by € 10.8 million had a positive effect. Contrary effects arose from the increase in trade debtors by € 4.0 million and the decrease of trade creditors by € 27.4 million.
| cash flow | 2015 3rd quarter € million |
2014 3rd quarter € million |
2015 1st – 3rd quarter € million |
2014 1st – 3rd quarter € million |
|---|---|---|---|---|
| Cash flow from operating activities | 35.5 | –30.1 | –128.0 | –121.9 |
| Cash flow from investment activity | –30.5 | –20.2 | –86.9 | –96.1 |
| Cash flow from financing activity | –0.2 | 2.8 | –21.6 | 11.0 |
| Changes in cash and cash equivalents | 0.6 | –47.6 | –235.5 | –206.4 |
| Liquid funds at the start of the reporting period | 196.9 | 212.3 | 433.0 | 371.1 |
| Liquid funds at the end of the reporting period | 197.5 | 164.7 | 197.5 | 164.7 |
| Free Cash flow | 4.4 | –52.7 | –191.9 | –198.8 |
In the fourth quarter, we are planning as every year an increasing surplus in liquidity. By virtue of the planned high investment volume, which is to be financed largely from own funds, and also based on the profit forecasts, we are planning with a positive free cash flow between € 10 and € 20 million for the entire year 2015.
Investments in plant, property and equipment as well as in intangible assets amounted to € 80.1 million in the first nine months (previous year's value: € 78.6 million). The focus of investments is on the construction projects started in the previous years: With a grand opening in late September, we celebrated the inauguration of our most modern production and assembly plant in Ulyanovsk (Russia). At the industrial centre Ulyanovsk, which is significant for the aerospace and automotive industry, we produce technologically high quality turning and milling machines of the ecoline series for the Russian market. On the premises with a size of 330,000 m², in addition a modern technology and demonstration centre is accommodated, as well as a trend setting energy park, from which up
to 15% of the energy required at the site is generated in own production. The construction of our technology centre in Moscow (Russia) is progressing as planned and its completion is expected in the spring of 2016. In South Korea, which is the fifth largest market worldwide for machine tools, we are further expanding our market presence. The construction of the new technology centre in Seoul is progressing as planned. The opening is expected for mid-2016. Upon completion of these construction projects, we will significantly reduce the investment level. In addition, we have modernised our production plants in Shanghai (China) and Pleszew (Poland). In particular, through the modernisation of the mechanical production in Pleszew, we have expanded the production competences at this site. Furthermore, we have invested in the development of pioneering products as well as in tools, models and equipment that are necessary for production.
On 29 September, we inaugurated our state-of-the-art production plant in Ulyanovsk (Russia). The centrepiece of the premises with a size of 330.000 m² is the manufacturing and assembly plant with modern equipment, and a modern technology and demonstration centre.
b . 09
11
Investments Segmental Reporting
Our business activities include the "Machine Tools" and "Industrial Services" segments. The "Corporate Services" segment primarily includes the dmg mori aktiengesellschaft with its group-wide holding functions. The selected machines from dmg mori company limited that we produce under licence are included in the "Machine Tools". The trade in and services for these machines are entered in the accounts under "Industrial Services".
The breakdown of sales revenues, order intake and ebit for the individual segments is presented as follows:
| segment key figures | |||||
|---|---|---|---|---|---|
| of dmg mori group | Changes 30 Sep. 2015 | ||||
| 30 Sep. 2015 | 31 Dec. 2014 | 30 Sep. 2014 | to 30 Sep. 2014 | ||
| € million | € million | € million | € million | % | |
| Sales Revenues | 1,648.8 | 2,229.0 | 1,562.4 | 86.5 | 6 |
| Machine Tools | 892.4 | 1,258.4 | 863.3 | 29.1 | 3 |
| Industrial Services | 756.2 | 970.4 | 698.9 | 57.3 | 8 |
| Corporate Services | 0.2 | 0.2 | 0.2 | 0.0 | |
| Order Intake | 1,742.0 | 2,331.4 | 1,740.8 | 1.2 | 0 |
| Machine Tools | 938.8 | 1,256.5 | 979.6 | –40.8 | –4 |
| Industrial Services | 803.0 | 1,074.7 | 761.0 | 42.0 | 6 |
| Corporate Services | 0.2 | 0.2 | 0.2 | 0.0 | |
| ebit | 111.5 | 182.6 | 111.7 | –0.2 | 0 |
| Machine Tools | 58.2 | 93.6 | 55.4 | 2.8 | 5 |
| Industrial Services | 86.0 | 123.8 | 81.8 | 4.2 | 5 |
| Corporate Services | –32.9 | –34.9 | –25.3 | –7.6 |
The "Machine Tools" segment is our core segment and includes the new machines business of the group with the divisions Turning and Milling, Advanced Technologies (Ultrasonic / Lasertec), ecoline, Electronics and dmg mori Systems.
| key figures | Changes 30 Sep. 2015 | ||||
|---|---|---|---|---|---|
| "machine tools" segment | 30 Sep. 2015 | 31 Dec. 2014 | 30 Sep. 2014 | to 30 Sep. 2014 | |
| € million | € million | € million | € million | % | |
| Sales revenues | |||||
| Total | 892.4 | 1,258.4 | 863.3 | 29.1 | 3 |
| Domestic | 298.1 | 444.3 | 301.8 | –3.7 | –1 |
| International | 594.3 | 814.1 | 561.5 | 32.8 | 6 |
| % International | 67 | 65 | 65 | ||
| Order intake | |||||
| Total | 938.8 | 1,256.5 | 979.6 | –40.8 | –4 |
| Domestic | 320.5 | 452.8 | 359.2 | –38.7 | –11 |
| International | 618.3 | 803.7 | 620.4 | –2.1 | 0 |
| % International | 66 | 64 | 63 | ||
| Order backlog | |||||
| Total | 576.5 | 530.1 | 648.3 | –71.8 | –11 |
| Domestic | 162.8 | 140.4 | 189.3 | –26.5 | –14 |
| International | 413.7 | 389.7 | 459.0 | –45.3 | –10 |
| % International | 72 | 74 | 71 | ||
| Investments | 59.8 | 71.0 | 39.6 | 20.2 | 51 |
| ebit | 58.2 | 93.6 | 55.4 | 2.8 | 5 |
| Changes 30 Sep. 2015 | |||||
| to 31 Dec. 2014 | |||||
| 30 Sep. 2015 | 31 Dec. 2014 | 30 Sep. 2014 | % | ||
| Employees | 3,590 | 3,520 | 3,521 | 70 | 2 |
| plus trainees | 264 | 241 | 237 | 23 | 10 |
| Total employees | 3,854 | 3,761 | 3,758 | 93 | 2 |
The "Machine Tools" segment developed in the third quarter as follows: sales revenues increased by € 30.7 million to € 315.8 million (previous year's quarter: € 285.1 million). As at 30 September 2015, sales revenues reached € 892.4 million and were thus 3% above the previous year's level of € 863.3 million. The "Machine tools" segment had a 54% share of group sales revenues (previous year: 55%).
With respects to the total sales revenues of the group, the "Machine Tools", "Industrial Services" and "Corporate Services" contributed as follows:
As at 30 September, order intake in the "Machine Tools" segment was € 938.8 million (previous year's period € 979.6 million). The decline is essentially due to investment postponements in Germany and weaker order intake in Russia. In the third quarter, orders increased by € 23.3 million to € 300.9 million (previous year's period: € 277.6 million). "Machine Tools" accounted for 54% of all incoming orders in the group (previous year: 56%). Order backlog amounted to € 576.5 million as of 30 September (previous year: € 648.3 million). ebit rose to € 58.2 million (previous year: € 55.4 million). As at 30 September 2015, 3,854 employees were working in the "Machine Tools" segment (31 December 2014: 3,761). The difference of 93 employees results primarily from the setting up and expanding of our production site in Ulyanovsk as well as at dmg mori Systems GmbH. Also, the "Advanced Technologies" division at sauer GmbH has received
additional staff.
The "Industrial Services" segment comprises the business activities of the Services and Energy Solutions divisions.
In the Services division, we combine the marketing activities for our machines and those of our cooperation partner as well as the LifeCycle Services for the machines. With the aid of the dmg mori LifeCycle Services, our customers optimise the productivity of their machine tools over their entire lifecycle – from commissioning until part exchange as a used machine. The wide range of training, repair and maintenance services offered to our customers ensures a high cost-efficiency of their machine tools.
b . 12
| key figures | |||||
|---|---|---|---|---|---|
| "industrial ser vices" |
Changes 30 Sep. 2015 | ||||
| segment | 30 Sep. 2015 € million |
31 Dec. 2014 € million |
30 Sep. 2014 € million |
€ million | to 30 Sep. 2014 % |
| Sales revenues | |||||
| Total | 756.2 | 970.4 | 698.9 | 57.3 | 8 |
| Domestic | 251.8 | 334.7 | 249.9 | 1.9 | 1 |
| International | 504.4 | 635.7 | 449.0 | 55.4 | 12 |
| % International | 67 | 66 | 64 | ||
| Order intake | |||||
| Total | 803.0 | 1.074.7 | 761.0 | 42.0 | 6 |
| Domestic | 279.8 | 361.5 | 269.2 | 10.6 | 4 |
| International | 523.2 | 713.2 | 491.8 | 31.4 | 6 |
| % International | 65 | 66 | 65 | ||
| Order backlog | |||||
| Total | 433.2 | 604.2 | 562.0 | –128.8 | –23 |
| Domestic | 199.8 | 172.4 | 164.9 | 34.9 | 21 |
| International | 233.4 | 431.8 | 397.1 | –163.7 | –41 |
| % International | 54 | 71 | 71 | ||
| Investments | 18.1 | 60.9 | 35.0 | –16.9 | –48 |
| ebit | 86.0 | 123.8 | 81.8 | 4.2 | 5 |
| Changes 30 Sep. 2015 | |||||
| 30 Sep. 2015 | 31 Dec. 2014 | 30 Sep. 2014 | to 31 Dec. 2014 % |
||
| Employees | 3,334 | 3,283 | 3,253 | 51 | 2 |
| plus trainees | 48 | 7 | 7 | 41 | – |
| Total employees | 3,382 | 3,290 | 3,260 | 92 | 3 |
In Energy Solutions we focus on the business areas of Storage Technology, Energy Efficiency, Services and Components.
Sales revenues in the "Industrial Services" segment amounted to € 242.7 million in the third quarter and were thereby at the same level as in the previous year (previous year: € 242.8 million). In the first nine months, sales revenues rose by € 57.3 million to € 756.2 million (previous year: € 698.9 million). Services recorded sales revenues of € 232.9 million in the third quarter (previous year: € 233.7 million). In the first nine months sales revenues rose by € 52.9 million to € 724.3 million (previous year: € 671.4 million). Sales revenues in the Energy Solutions division were € 9.8 million in the third quarter (previous year: € 9.1 million) and amounted to € 31.9 million in the first nine months (previous year: € 27.5 million). "Industrial Services" contributed a total share of 46% to group sales revenues (previous year: 45%).
Order intake in the "Industrial Services" segment was € 237.7 million in the third quarter (previous year's quarter: € 253.0 million). In the first nine months order intake amounted to € 803.0 million (previous year: € 761.0 million). The contribution of Services rose by € 34.8 million to € 767.8 million (previous year: € 733.0 million). In particular, the order intake in our original business, the LifeCycle Services (e.g. spare parts,
Segmental Reporting "Industrial Services" "Corporate Services"
maintenance and repair) and sales commissions accounted for this result. It increased by € 28.9 million or 7% to € 452.5 million (previous year: € 423.6 million). Orders for machines of our cooperation partner as at 30 September amounted to € 315.3 million (previous year: € 309.4 million). The "Energy Solutions" division recorded an order intake of € 35.2 million in the past nine months (previous year: € 28.0 million). "Industrial Services" accounted for 46% of the order intake in the group (previous year: 44%).
The order backlog amounted to € 433.2 million (previous year: € 562.0 million). ebit in the first nine months amounted to € 86.0 million (previous year: € 81.8 million). The number of employees in the "Industrial Services" segment at the end of the third quarter 2015 was 3,382 (31 Dec. 2014: 3,290). The risen number of employees results in particular from additions to personnel at dmg mori Spare Parts and at our local sales and service companies in Germany, India, France and Hungary.
| key figures "corporate ser vices" segment |
30 Sep. 2015 € million |
31 Dec. 2014 € million |
30 Sep. 2014 € million |
Changes 30 Sep. 2015 to 30 Sep. 2014 € million |
|---|---|---|---|---|
| Sales revenues | 0.2 | 0.2 | 0.2 | 0.0 |
| Order intake | 0.2 | 0.2 | 0.2 | 0.0 |
| Investments * | 2.2 | 27.1 | 25.9 | –23.7 |
| ebit | –32.9 | –34.9 | –25.3 | –7.6 |
* of which as at 31 Dec. 2014: € 22.1 million; 30 Sep. 2014: € 21.9 million capital inflow to financial assets
| Changes 30 Sep. 2015 to 31 Dec. 2014 |
|||||
|---|---|---|---|---|---|
| 30 Sep. 2015 | 31 Dec. 2014 | 30 Sep. 2014 | % | ||
| Employees | 125 | 115 | 113 | 10 | 9 |
The "Corporate Services" segment primarily includes the dmg mori aktiengesellschaft with its group-wide holding functions. ebit amounted to € –32.9 million (previous year: € – 25.3 million); this includes the risen costs of personnel as well as increased legal and consulting costs in the scope of the tender offer of dmg mori company limited. The financial result in the first nine months was at € 8.0 million (previous year: € 7.4 million). ebt amounted to – 24.9 million (previous year: € – 17.9 million).
On 30 September 2015, the group had 7,361 employees, of whom 312 were trainees, (31 Dec. 2014: 7,166). The number of employees rose by 195. The addition of employees in the "Machine Tools" segment resulted primarily from the hiring of further staff in the course of setting up and expanding our production site in Ulyanovsk as well as at dmg mori Systems GmbH and sauer GmbH. The number of employees in the "Industrial Services" segment was increased in particular at dmg mori Spare Parts and at our local sales and service companies in Germany, India, France and Hungary. At our domestic companies, 4,056 employees are on staff (55%) and 3,305 employees (45%) at the foreign companies. Cost of personnel amounted to € 404.7 million (previous year's period: € 371.4 million). The personnel ratio was 23.6% (previous year's period: 22.8%).
The share of dmg mori aktiengesellschaft proved stable in the course of the year in comparison to the volatility in the capital markets. The security showed a positive performance with a plus of 45% within the first nine months. The mdax recorded a plus of 14% in the same period. In the third quarter, too, the share showed a stable development: The price in the beginning of the reporting period was € 32.79 (01 July 2015) and closed at the end of the third quarter with € 34.29 (+4.6%). The market capitalisation currently amounts € 2,824.0 million (reporting date: 23 Oct. 2015).
* 04 January 2015 = 100, stock performance indexed, xetra stock prices Source: Deutsche Börse Group
The company is analysed regularly by 11 banks, two of which recommend the share as a buy and eight institutions recommend "holding" the stock. One analyst recommends selling the share.
For the first nine months, based on the number of shares, a turnover rate of 0.79 times (previous years' period: 0.62 times) was calculated. At the German stock exchanges, the trading volume averaged 327,000 shares per trading day (previous year: 257,000 shares).
| dmg mori aktiengese | llschaft | |||||||
|---|---|---|---|---|---|---|---|---|
| 30 Sep. 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | ||
| Share capital | € million | 204.9 | 204.9 | 204.9 | 156.4 | 156.4 | 118.5 | 118.5 |
| Number of shares | million | |||||||
| shares | 78.8 | 78.8 | 78.8 | 60.2 | 60.2 | 45.6 | 45.6 | |
| Closing price 1) | € | 34.29 | 23.50 | 23.15 | 15.25 | 9.75 | 16.70 | 11.33 |
| Highest price 1) 4) | € | 34.29 | 26.82 | 24.53 | 16.11 | 17.50 | 17.19 | 11.69 |
| Lowest price 1) 4) | € | 23.28 | 18.85 | 15.00 | 9.74 | 8.69 | 7.35 | 4.25 |
| Market capitalisation | € million | 2,702.3 | 1,852.2 | 1,824.6 | 917.6 | 586.6 | 761.2 | 516.4 |
| Earnings per share 2) | € | 0.87 | 1.41 | 1.33 | 1.32 | 0.85 | 0.09 | 0.10 |
| Price-to-earnings ratio 3) | 39.41 | 16.7 | 17.4 | 11.6 | 11.5 | 185.6 | 113.3 |
1) Closing price based on xetra 2) Acc. to ias 33
3) Closing price / Earnings per share
4) Period from 01 Jan. – 30 Sept. 2015
In response to the changed shareholder structure, the Supervisory Board of dmg mori aktiengesellschaft established a Shareholder Business Relationships Committee (AfGA) in its meeting on 22 September 2015. This committee has the responsibility in particular, to review the business relations of the company with those shareholders, holding at least 10% of the share capital and voting rights.
The expenses for research and development in the first nine months amounted to € 34.4 million (previous year: € 32.7 million). Overall, 518 employees worked on the development of our new products, which equals a share of 14% of the staff at the plants.
At international and national trade fairs in the first nine months, we presented jointly with our Japanese partner 10 world premieres, which are equipped with the celos control and operating software, and in the new Corporate Design. The changeover of our product portfolio to the Corporate Design was completed successfully at the emo autumn fair in Milan.
With its 5 new apps and now overall 16 apps, celos is the key element for a networked intelligent production going towards Industrie 4.0.
As a current innovation project, dmg mori presented for the first time at the emo in Milan a machine tool, equipped with more than 60 monitoring sensors. The dmc 80 fd duoblock connects the digitalised components from the sensor up to the cloud for "big data" recording, storing and analysis. The aim is to achieve permanent monitoring of the machine status. Overloads of the machine, for example, can be prevented thereby and maintenance cycles can be scheduled more flexibly. Here dmg mori offers tailormade solutions to the customer, based on the collected data.
financial statements
Share Research and Development
The ecoline portfolio is strengthened with a new ecoMill V-series in the segment of vertical machining centres. The new design of the ecoMill 600 v, ecoMill 800 v and ecoMill 1100 v offers strong value stability and better accessibility for ergonomic loading and unloading of components and tools. By virtue of optimised rigidity and the use of high-tech components, the new ecoMill V-series reaches the highest cutting performance and precision in its class. Presented at the emo in Milan, the new, intuitive dmg mori slimline® control with 19" multi-touch display demonstrates our consistent advance development in the area of multi-functional control technology.
In the Advanced Technologies division, a continuous further development of the complete process chain is underway, starting from the Hybrid-nc programming in cad / cam to technology parameters from a materials database, and also including processing, process monitoring and documentation. The hybrid cad / cam module for additive and subtractive programming offers our customers a consistent solution for construction, programming and processing of complex 3d components in the additive manufacturing.
The aim of our activities in the dmg mori components division is to achieve use across series and a worldwide production of standardised components with characteristics that resist even the harshest conditions of use. Upon the standardisation of our patented milling spindles, speedmaster®, powermaster® and compactmaster®, dmg mori exhibits for the first time, the toolstar tool magazine with the shortest of tool change times and low wear and tear in a compact design.
Through the additional integration of dmg mori technology cycles, complex processing can be programmed up to 60% more quickly directly on the machine. The exclusive dmg mori technology cycle for "Grinding" enables the integration of the grinding technology on standard machines for top surface quality.
dmg mori slimline® multi-touch control for the ecoline series
The new dmg mori slimline® multi-touch control (19") with 3d control technology is the next development step for a modern operator interface. The practical and ergonomically optimised 19" multi-touch screen offers highest resolution and a 45° swivel range. By means of the 3d control technology, the work piece processing can be simulated in advance, with the exact details.
In its worldwide business activities, dmg mori 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 that of the individual business units.
Opportunities are identified and analysed within the opportunities and risk management system. With our marketing information system (mis) we identify significant individual opportunities by collecting customer data worldwide and evaluating market and competitor data.
Overall economic opportunities: The worldwide economic development in the third quarter 2015 was restrained. The low oil price, unchanged low prime rates in Europe and the usa, as well as an export-friendly exchange rate situation of the euro against the U.S. dollar are supporting this development, even though insecurities are rising noticeably. The cyclical development in Germany has developed weaker than forecast compared to the expectations in the first half-year.
In Europe, a modestly positive cyclical development is steadying in 2015. Great Britain and numerous former European crisis countries (Spain, Italy, Ireland, and Portugal) indicate improved cyclical developments. Following an at least temporary resolution of the debt crisis in Greece, the existing economic uncertainty at the markets for this reason has largely passed. In the usa, the positive cyclical development of the first half year 2015 is expected to be maintained. The cyclical situation in India is notably improving upon the introduction of economic reforms.
Against the background of the overall economic opportunities, we are asserting our position as a market leader in the machine tool industry.
We take advantage of industry-specific opportunities through our ecoline series, in the global markets for affordable machines with innovative technology. We are continuously expanding our ecoline series further for this purpose. In addition, the dmg mori group continues to record a generally high level of product interest in the machine tool business.
By virtue of the continued favourable exchange rate level of the Japanese yen compared to the euro, we receive additional sales opportunities for the machines of our cooperation partner, dmg mori company limited, which we sell in the euro zone. Consequently, these machines can be offered at more favourable terms.
In the still relevant market for renewable energies we are taking advantage of opportunities, in particular in energy storage and energy efficiency consulting, in which we are able to participate with our "Energy Solutions".
additional
Corporate strategy opportunities arise for the dmg mori group through a sustained leadership in innovation and technology, as well as through market leading product quality. This opens up opportunity for us to further expand our position in numerous markets. Moreover, we are tapping new markets by expanding new business fields such as the comprehensive system and automation solutions.
As a full-liner, we are expanding our "Advanced Technologies" in the area of innovative machine tools with the continuous development of new machine types. In addition, an innovative operating interface is available in celos, which offers numerous connectivity options for our machines with other systems.
In the implementation of joint development activities, purchasing activities, and additional efficiency increases in production, we profit from our close cooperation with dmg mori company limited.
Furthermore, we are further expanding the service range of the dmg mori group as an important segment. With our global service and spare parts supply concept, we provide comprehensive services to our customers around the world.
Through dmg mori Finance, we offer our customers tailor-made financing solutions nationally and internationally.
Performance-related opportunities arise for us from the circumstance that we actively involve our suppliers in the value creation process and thereby strengthen their supply loyalty. Our worldwide direct sales and service network guarantees a good allround service for our customers.
Risks are systematically identified, valued, aggregated, monitored and reported by the risk management system of the dmg mori group. For this purpose, the risks of the individual company divisions are identified quarterly and the risk potentials that are assessed on this basis are analysed and evaluated by means of quantitative methods. Risks posing a threat to existence are reported outside the regular reporting schedule.
Overall economic risks arise for the dmg mori group especially from negative cyclical influences. France as an important market region, is falling behind further in Europe compared to a slightly improved cyclical development in other European countries.
Negative economic impulses are given in particular from the emerging countries. Declines in the economic growth rates can be expected in China also in the further course of the year 2015 and 2016. This development is even amplified by the partly drastic price drops at the Chinese stock markets.
The economic situation in Russia has deteriorated further. The economic sanctions in place, isolation from products of the eu and the usa, and the low oil price weaken the Russian economy, whereas this can also be felt as negative effects on the economy in Germany and the eu.
A globally noticeable economic decline would have significant influence on the global market for machine tools and would lead to a substantial reduction of the order intake and achievable margins. Moreover, changes in the exchange rates due to political or economic crises can impact our future competitive situation (economic currency risk).
We counteract this risk through international sourcing as well as an increasingly regionalised production. We presently perceive the probability to be low that losses will occur due to general economic risks (0% – 20%).
Industry-specific risks are present in the form of intense competition and increased price pressure in the markets. Because of the low exchange rate level of the Japanese yen, competitive advantages are furthermore created for Japanese manufacturers in the euro zone. We counteract these risks with our technological lead and focus on our customers and markets.
Potential indirect negative effects on the machine tool industry from the currently debated problems regarding excessive, hazardous emissions of diesel vehicles of certain German and European manufacturers are possible but remain to be seen concretely in the near future.
From projects already completed in the "Energy Solutions" division, risks may still arise for the group, based on its role as the former general contractor. There are still pending questions of approval regulations. General operator risks may result from the continuous operation of solar parks for some customers. Overall, we regard the probability of occurrence of losses from industry-specific risks to be low.
From the overall economic and industry-specific risks, cumulated expected risks result in the amount of around € 28.7 million with a low probability of occurrence.
The corporate strategy risks are found primarily in an inaccurate estimation of the future market development and possible misjudgement of technological developments. We counteract these risks through intense market and competition analyses, regular strategy meetings with customers and suppliers, high-profile presence at trade fairs in all key markets, as well as by means of our early warning system, the mis. We quantify potential losses from corporate strategy risks at around € 12.7 million with a low probability of occurrence.
We are exposed to procurement and purchasing risks especially due to price increases for materials in the machine tools business. Further risks are constituted in potential supplier failure and quality problems. We counteract these risks by means of standardising parts and components, as well as international sourcing with at least two suppliers for the essential materials. We quantify potential losses from the procurement and purchasing risks at around € 10.9 million with a low probability of occurrence.
We control production risks permanently by means of key figures of the assembly and production progress, processing time, as well as processing consistency, for example, the contribution cover per machine type and the turnover rate of raw materials and consumables, as well as other inventories. We avoid incalculable production projects in general, so that we consider these risks to be manageable and controllable. We attempt to counteract plagiarism with our innovation-oriented product strategy that secures us a lead in technology. Potential risks from the production risk area are estimated to be € 15.1 million with a low probability of occurrence.
Risks in the area of research and development exist due to potential budget exceedance, false judgment of developments, increased start-up costs for new products, as well as a delayed market launch of innovations. This risk is counteracted by our development cooperation with dmg mori company limited, customers, suppliers and universities. In this area, too, we avoid incalculable research and development projects in general, so that we consider these risks to be manageable and controllable. We quantify potential risks from research and development at around € 2.8 million with a low probability of occurrence.
Personnel risks: Due to our continuous need for highly-skilled specialists and managers risk may arise through not being able to attract and retain these employees in sufficient numbers and this may restrict the group's development long-term. We counteract these risks through intensive programmes to train, attract new employees, increasing the qualifications of existing employees, and through performance-related remuneration with a profit-based incentive scheme and deputising arrangements, which are intended to cushion the loss of specialists and managers, and through early successor planning. The necessary availability at any one time of highly-qualified managers and staff could also be negatively affected by a high rate of illness. We counteract this risk in particular through a preventive occupational health care scheme. On the basis of the abovementioned measures, we consider the probability of occurrence of estimated losses of around € 6.8 million as slight.
it risks are caused by the increasing networking of our in part complex systems. These arise from the circumstance that networks might break down and that data might be falsified or destroyed through user and programming errors or external effects. Furthermore, we perceive to be exposed to risks of organised data espionage. We counteract these it risks with a security-optimised organisation of our IT environment, regular investments in hard and software, use of virus scanners, firewall systems, as well as physical and data access controls. Potential losses from this area currently amount to € 1.9 million. The probability of occurrence is deemed to be low.
Financial risks result, for example, from our international activities in the form of currency-related risks that we evaluate and hedge on the basis of our currency strategy. At this time, we expect currency-related risks in the amount of around € 4.0 million. The central financing components of the dmg mori group are represented in a syndicated loan, which contains a cash and surety tranche and which is approved until 2016, as well as receivables sales programmes. All financing agreements include an agreement on compliance with standard covenants. The liquidity of the dmg mori group is provided to adequate extent. In principle, we bear the risk of bad debt, which may result in value adjustments or in individual cases may even result in default. Potential losses from all financial risks including the currency-related risks amount to around € 19.8 million in total. The probability of occurrence of a loss is low.
Other risks arise from the operative business. Legal risks result in particular from potential warranty claims relating to the sale of machine tools and services due to claims of defects by customers, which cannot always be prevented by our efficient quality management. In order to keep the existing risks manageable and calculable, the warranty and liability obligations in the dmg mori group are limited in both scope as well as time.
Insofar as accrued taxes on loss carry-forwards or interest carry-forwards have not been value-adjusted, we presume that these tax reduction potentials can be used against taxable income. We believe that the tax returns and social insurance declarations submitted by us are complete and correct. Nonetheless, claims for subsequent payments may arise in the course of audits due to a differing evaluation of facts. Should this come to be the case or if the loss and interest carry-forwards were not to be utilisable, this may have negative effects on the asset, financial and earnings position of the dmg mori group. Overall, we quantify potential losses from tax risks at € 8.4 million with a low probability of occurrence.
Overall risk: All risks are aggregated to a total risk with the Monte Carlo simulation, which from today's perspective does not endanger the future of the group. Compared to the last reporting for the first half year 2015, the risks have increased.
The global economy will continue to grow according to the current forecasts of the IfW. Presently, an increase of the gdp by 3.3% is expected in the year 2015 and by 3.7% in the year 2016. For Asia, growth continues to be forecast. The Chinese economy, in contrast, is expected to grow more slowly. Further upward development is expected in the usa at 2.5% growth in 2015 and 3.0% in 2016. An accelerated recovery is expected for Europe. According to current forecasts, the economy in the year 2015 is said to grow by 1.8% and a growth of 2.0% is forecast for the year 2016. In Germany, as well, the economy follows an upward trend; the gdp is expected to grow by 1.8% in 2015 and by 2.1% in 2016.
The worldwide market for machine tools will decline in the year 2015 according to the latest forecasts. The vdw and the British economic research institute Oxford Economics expect in their latest forecast (status: October 2015) a decline in global consumption by 4.3% to € 59.3 billion (forecast of April 2015: + 3.3% to € 64.0 billion). In Asia, stronger declines this year are expected especially in China (– 11.6%), while a substantial rise in consumption is expected in Japan (+ 23.0%). In America, the usa will probably record a stagnation (+ 0.4%); in Brazil, consumption is expected to decline further significantly (– 19.0%). In Europe, Spain (+ 12.6%) and Italy (+ 4.6%) will continue on their road to recovery. In Russia (– 35.3%) a considerable decline in consumption continues to be expected. Consumption in Germany will likely be sightly lower (– 0.3%) in the year 2015.
Together with our Japanese partner dmg mori company limited we will continue to further concentrate on optimising the international sales and service structures. Upon the opening of our most modern production and assembly plant in Ulyanovsk (Russia) in late September, we have set a further milestone: "Made in Russia for Russia" – with this aim, dmg mori produces in Russia technologically high-quality turning and milling machines of the ecoline series. Likewise, the construction of the new technology centres in Moscow and in Seoul (Korea) is progressing on schedule.
In addition, we see more growth potentials in the emerging markets of Asia and other emerging countries.
Besides the optimisation of our international sales and service structures, we will increasingly expand the cooperation with dmg mori company limited successively in the areas of product development and production in the future. It is our aim to create efficiency advantages in the development of products through a bundling of resources and utilisation of shared expertise.
In purchasing, the focus is on expanding our global supply partnership with regard to the activities in common with our Japanese partner. Here, we aim for optimising material costs worldwide.
Through a global purchasing strategy coordinated and by means of uniform quality standards, improvements regarding quality, costs and delivery capacity are to be reached together.
We intend to increase the share of our Services division further with its globally leading service range – foremost in the areas of repair, maintenance, preventive service and spare parts – and thereby ultimately our earning power. Our activities also aim at the advancement of complex services for the improvement of productivity of our installed machine tools, as well as the development of products to raise the scheduled service calls.
The overall economic dynamics in the third quarter have slowed down. In particular, the declines of the growth rates in China as well as the recession in key emerging countries burden the global economy. We believe that the global economic development will remain volatile overall. Due to the difficult market environment and the present postponement of investments we are now planning an order intake from € 2.3 to € 2.4 billion for the current financial year. We confirm our annual forecast: Sales revenues should amount to around € 2.25 billion. In the fourth quarter, we still expect rising sales and earnings contributions. On the assumption that the market development will continue according to our expectations, we plan to achieve ebit of around € 165 million and ebt of around € 160 million for the complete year. Provided that these figures are achieved, we plan to pay a dividend for the financial year 2015.
The dmg mori group has a solid financing volume for the coming years and the necessary liquidity. We continue to assume a positive free cash flow between € 10 million and € 20 million for the entire year of 2015.
General Statement on Future Business Development 2016
We continue to plan investments of about € 140 million for the current financial year – without consideration of additions to goodwill – in fixed assets and intangible assets. Upon completion of our construction projects in Russia and Korea by 2016, we will substantially reduce the investment level.
The activities in the area of research and development aim at preparing the previously presented 10 of overall 18 world premieres for delivery. In close cooperation with our cooperation partner, we will further advance the development of innovative products and technologies with the aim of offering the best possible solution for application to our customers. Through the continuous advancement of our key components, the dmg mori components, we unite the quality characteristics of both companies with regard to quality, precision and robustness. The expenses for research and development in the current financial year will be as planned at around € 48 million (previous year: € 44.1 million).
The global economy will grow in 2016 according to the current forecasts of the Institute for World Economics (IfW) in Kiel. Further growth is forecast for Asia, whereas the Chinese economy is expected to grow more slowly. Likewise, additional upward development is expected in the usa in the coming year. An accelerated recovery is expected for Europe. We believe, however, that the global economic development will remain volatile overall.
The vdw and Oxford Economics expect the worldwide consumption of machine tools to grow by 4.1% in 2016 (status: October 2015).
The dmg mori group expects for the financial year 2016 a stable order intake and slightly rising sales revenues.
The cooperation with dmg mori company limited will be intensified further. At the same time, we perceive there are key potentials in the areas of product development and production, and purchasing in consequence of the expansion of our global supply partnerships, as well as in the optimisation of our international sales and service structures, and the joint tapping of emerging markets in Asia and other emerging countries.
| 3rd quarter | 2015 | 2014 | Changes | |||
|---|---|---|---|---|---|---|
| 01 July – 30 Sep. | 01 July – 30 Sep. | 2015 against 2014 | ||||
| € million | % | € million | % | € million | % | |
| Sales Revenues | 558.6 | 100.1 | 528.0 | 95.2 | 30.6 | 5.8 |
| Changes in finished goods | ||||||
| and work in progress | –6.9 | –1.2 | 19.9 | 3.6 | –26.8 | 134.7 |
| Own work capitalised | 6.2 | 1.1 | 6.5 | 1.2 | –0.3 | 4.6 |
| Total Work Done | 557.9 | 100.0 | 554.4 | 100.0 | 3.5 | 0.6 |
| Cost of materials | –279.7 | –50.1 | –291.7 | –52.6 | 12.0 | 4.1 |
| Gross Profit | 278.2 | 49.9 | 262.7 | 47.4 | 15.5 | 5.9 |
| Personnel costs | –130.5 | –23.4 | –124.3 | –22.4 | –6.2 | 5.0 |
| Other income and expenses | –90.7 | –16.3 | –82.7 | –14.9 | –8.0 | 9.7 |
| Depreciation | –13.9 | –2.5 | –11.8 | –2.1 | –2.1 | 17.8 |
| Financial Result | 0.0 | 0.0 | –1.8 | –0.3 | 1.8 | 100.0 |
| ebt | 43.1 | 7.7 | 42.1 | 7.7 | 1.0 | |
| Income taxes | –13.3 | –2.4 | –13.0 | –2.4 | –0.3 | |
| Earnings after taxes | 29.8 | 5.3 | 29.1 | 5.3 | 0.7 | |
| Profit share of shareholders of | ||||||
| dmg mori aktiengesellschaft | 26.9 | 4.8 | 27.0 | 4.9 | –0.1 | |
| Profit share attributed to minority interests | 2.9 | 0.5 | 2.1 | 0.4 | 0.8 | |
| Earnings per share pursuant to ias 33 (in euros) | ||||||
| Undiluted | 0.34 | 0.34 | ||||
| Diluted | 0.34 | 0.34 |
| 1st – 3rd quarter |
2015 | 2014 | Changes | ||||
|---|---|---|---|---|---|---|---|
| 01 Jan. – 30 Sep. | 01 Jan. – 30 Sep. | 2015 against 2014 | |||||
| € million | % | € million | % | € million | % | ||
| Sales Revenues | 1,648.8 | 96.3 | 1,562.4 | 95.8 | 86.4 | 5.5 | |
| Changes in finished goods | |||||||
| and work in progress | 53.6 | 3.1 | 58.7 | 3.6 | –5.1 | 8.7 | |
| Own work capitalised | 9.7 | 0.6 | 10.1 | 0.6 | –0.4 | 4.0 | |
| Total Work Done | 1,712.1 | 100.0 | 1,631.2 | 100.0 | 80.9 | 5.0 | |
| Cost of materials | –892.3 | –52.1 | –873.7 | –53.6 | –18.6 | 2.1 | |
| Gross Profit | 819.8 | 47.9 | 757.5 | 46.4 | 62.3 | 8.2 | |
| Personnel costs | –404.7 | –23.6 | –371.4 | –22.8 | –33.3 | 9.0 | |
| Other income and expenses | –263.2 | –15.4 | –240.2 | –14.7 | –23.0 | 9.6 | |
| Depreciation | –40.4 | –2.3 | –34.2 | –2.1 | –6.2 | 18.1 | |
| Financial Result | –2.7 | –0.2 | –5.0 | –0.3 | 2.3 | 46.0 | |
| ebt | 108.8 | 6.4 | 106.7 | 6.5 | 2.1 | ||
| Income taxes | –33.7 | –2.0 | –33.0 | –2.0 | –0.7 | ||
| Earnings after taxes | 75.1 | 4.4 | 73.7 | 4.5 | 1.4 | ||
| Profit share of shareholders of | |||||||
| dmg mori aktiengesellschaft | 68.9 | 4.0 | 67.2 | 4.1 | 1.7 | ||
| Profit share attributed to minority interests | 6.2 | 0.4 | 6.5 | 0.4 | –0.3 | ||
| Earnings per share pursuant to ias 33 (in euros) | |||||||
| Undiluted | 0.87 | 0.86 | |||||
| Diluted | 0.87 | 0.86 |
group interim
management report business development
| 1 october 2014 – 30 sep tember 2015 |
|||||||
|---|---|---|---|---|---|---|---|
| 01 Oct. 2014 – 30 Sept. 2015 | 01 Oct. 2013 – 30 Sept. 2014 | Changes 2015 against 2014 | |||||
| € million | % | € million | % | € million | % | ||
| Sales Revenues | 2,315.4 | 98.8 | 2,136.1 | 97.8 | 179.3 | 8.4 | |
| Changes in finished goods | |||||||
| and work in progress | 12.1 | 0.5 | 36.0 | 1.6 | –23.9 | 66.4 | |
| Own work capitalised | 15.7 | 0.7 | 12.4 | 0.6 | 3.3 | 26.6 | |
| Total Work Done | 2,343.2 | 100.0 | 2,184.5 | 100.0 | 158.7 | 7.3 | |
| Cost of materials | –1,208.6 | –51.6 | –1,150.0 | –52.6 | –58.6 | 5.1 | |
| Gross Profit | 1,134.6 | 48.4 | 1,034.5 | 47.4 | 100.1 | 9.7 | |
| Personnel costs | –539.4 | –23.0 | –494.2 | –22.6 | –45.2 | 9.1 | |
| Other income and expenses | –356.7 | –15.2 | –322.9 | –14.8 | –33.8 | 10.5 | |
| Depreciation | –56.1 | –2.4 | –46.4 | –2.1 | –9.7 | 20.9 | |
| Financial Result | –5.0 | –0.2 | –9.1 | –0.4 | 4.1 | 45.1 | |
| ebt | 177.4 | 7.6 | 161.9 | 7.5 | 15.5 | ||
| Income taxes | –54.9 | –2.4 | –50.1 | –2.4 | –4.8 | ||
| Earnings after taxes | 122.5 | 5.2 | 111.8 | 5.1 | 10.7 | ||
| Profit share of shareholders of | |||||||
| dmg mori aktiengesellschaft | 112.3 | 4.8 | 102.4 | 4.7 | 9.9 | ||
| Profit share attributed to minority interests | 10.2 | 0.4 | 9.4 | 0.4 | 0.8 | ||
| Earnings per share pursuant to ias 33 (in euros) | |||||||
| Undiluted | 1.42 | 1.36 | |||||
| Diluted | 1.42 | 1.35 |
opportunities
and risk report forecast
| 2015 | 2014 | 2015 | 2014 | |||
|---|---|---|---|---|---|---|
| 01 July – 30 Sept. € million |
01 July – 30 Sept. € million |
01 Jan. – 30 Sept. € million |
01 Jan. – 30 Sept. € million |
01 Oct. 2014 – 30 Sept. 2015 € million |
01 Oct. 2013 – 30 Sept. 2014 € million |
|
| Earnings after taxes | 29.8 | 29.1 | 75.1 | 73.7 | 122.5 | 111.8 |
| Other comprehensive income | ||||||
| Actuarial gains / losses | 0.0 | 0.0 | 0.0 | –0.2 | –7.7 | –2.2 |
| Income taxes of items not reclassified | ||||||
| to the income statement | 0.0 | –0.6 | 0.0 | 0.0 | 2.2 | 0.6 |
| Sum of items not reclassified | ||||||
| to the income statement | 0.0 | –0.6 | 0.0 | –0.2 | –5.5 | –1.6 |
| Differences from currency translation | –19.1 | 2.1 | –0.5 | 4.5 | –11.9 | 3.4 |
| Changes in market value of hedging instruments | 1.4 | –2.3 | 1.9 | –4.3 | 2.9 | –3.7 |
| Changes in the fair value measurement | ||||||
| of available-for-sale assets | –77.4 | –5.7 | 10.4 | –30.9 | 11.0 | –14.8 |
| Hedging of net investments | 0.3 | 0.0 | 1.4 | 0.0 | –1.0 | 0.0 |
| Income taxes on items which are reclassified | ||||||
| to the income statement | 0.7 | 1.3 | –0.7 | 1.3 | –0.8 | 0.4 |
| Sum of items which are reclassified | ||||||
| to the income statement | –94.1 | –4.6 | 12.5 | –29.4 | 0.2 | –14.7 |
| Other comprehensive income | ||||||
| for the period after taxes | –94.1 | –5.2 | 12.5 | –29.6 | –5.3 | –16.3 |
| Total comprehensive income for the period | –64.3 | 23.9 | 87.6 | 44.1 | 117.2 | 95.5 |
| Profit share of shareholders of | ||||||
| dmg mori aktiengesellschaft | –65.1 | 21.6 | 81.1 | 37.6 | 105.5 | 86.3 |
| Profit share attributed to minority interests | 0.8 | 2.3 | 6.5 | 6.5 | 11.7 | 9.2 |
Consolidated Income Statement Consolidated Statement of other Comprehensive Income
| asse ts |
30 Sep. 2015 € million |
31 Dec. 2014 € million |
30 Sep. 2014 € million |
|---|---|---|---|
| Long-term assets | |||
| Goodwill | 134.4 | 135.2 | 139.7 |
| Other intangible assets | 71.3 | 78.8 | 68.2 |
| Tangible assets | 443.3 | 395.2 | 365.3 |
| Equity accounted investments | 47.1 | 46.8 | 46.8 |
| Other equity investments | 165.4 | 154.9 | 153.1 |
| Trade debtors | 0.6 | 0.5 | 1.3 |
| Other long-term financial assets | 9.2 | 13.1 | 7.8 |
| Other long-term assets | 11.2 | 1.7 | 11.4 |
| Deferred taxes | 52.6 | 53.8 | 50.2 |
| 935.1 | 880.0 | 843.8 | |
| Short-term assets | |||
| Inventories | 576.2 | 495.3 | 567.1 |
| Trade debtors | 243.0 | 200.6 | 227.4 |
| Receivables from at equity accounted companies | 10.1 | 10.4 | 11.6 |
| Receivables from other related parties | 34.9 | 46.1 | 32.9 |
| Receivables from associated companies | 7.5 | 2.7 | 1.1 |
| Other short-term financial assets | 68.8 | 72.7 | 111.9 |
| Other short-term assets | 63.4 | 51.3 | 40.1 |
| Income tax receivables | 0.3 | 0.4 | 0.4 |
| Cash and cash equivalents | 197.5 | 433.0 | 164.7 |
| Long-term assets held for sale | 38.2 | 37.3 | 51.5 |
| 1,239.9 | 1,349.8 | 1,208.7 | |
| 2,175.0 | 2,229.8 | 2,052.5 |
additional information
Consolidated Balance Sheet
| Equity Subscribed capital 204.9 204.9 204.9 Capital provision 498.5 498.5 498.5 Revenue provisions 465.7 428.0 414.6 Total equity of shareholders of dmg mori aktiengese llschaft 1,169.1 1,131.4 1,118.0 Minority interests' share of equity 141.2 134.7 116.6 Total equity 1,310.3 1,266.1 1,234.6 Long-term debts Long-term financial debts 66.0 42.4 13.1 Pension provisions 46.7 47.8 38.1 Other long-term provisions 31.0 31.8 24.8 Other long-term financial liabilities 1.6 3.2 2.5 Other long-term liabilities 3.0 3.3 2.2 Deferred taxes 4.5 3.9 6.2 152.8 132.4 86.9 Short-term debts Short-term financial debts 9.3 9.8 7.0 Tax provisions 33.8 36.3 32.3 Other short-term provisions 172.4 160.7 164.8 Payments received on account 144.8 139.0 157.4 Trade creditors 221.0 301.3 211.5 Liabilities to at equity accounted companies 1.5 0.7 0.4 Liabilities to other related parties 59.6 82.5 64.6 Liabilities to associated companies 15.5 30.7 20.5 Other short-term financial liabilities 22.6 35.5 35.0 Other short-term liabilities 31.1 34.0 28.6 Liabilities in connection with assets held for sale 0.3 0.8 8.9 711.9 831.3 731.0 2,175.0 2,229.8 2,052.5 |
equity and liabilities | 30 Sep. 2015 € million |
31 Dec. 2014 € million |
30 Sep. 2014 € million |
|---|---|---|---|---|
| 2015 01 July – |
2014 01 July – |
2015 01 Jan. – |
2014 01 Jan. |
01 Oct. 2014 – | 01 Oct. 2013 – | |
|---|---|---|---|---|---|---|
| 30 Sept. | 30 Sept. | 30 Sept. | 30 Sept. | 30 Sept. 2015 | 30 Sept. 2014 | |
| Earnings before taxes (EBT) | € million 43.1 |
€ million 42.1 |
€ million 108.8 |
€ million 106.7 |
€ million 177.4 |
€ million 161.9 |
| Income taxes | –13.3 | –13.0 | –33.7 | –33.0 | –54.9 | –50.1 |
| Depreciation | 13.9 | 11.8 | 40.4 | 34.2 | 56.1 | 46.4 |
| Change in deferred taxes | 1.5 | 1.3 | 1.8 | –2.0 | –2.3 | –0.8 |
| Change in long-term provisions | –5.1 | 3.9 | –1.9 | –3.3 | 6.9 | 7.4 |
| Other income and expenses not affecting payments | –0.2 | –0.3 | 0.1 | –0.1 | 2.4 | –0.6 |
| Change in short-term provisions | 15.9 | 8.4 | 9.2 | 4.0 | 7.6 | 10.0 |
| Changes in inventories, trade debtors and other assets | 11.9 | –32.7 | –133.6 | –186.9 | 1.3 | –97.9 |
| Changes in trade creditors and other liabilities | –32.2 | –51.6 | –119.1 | –41.5 | –30.0 | 22.5 |
| 35.5 | –30.1 | –128.0 | –121.9 | 164.5 | 98.8 | |
| Amounts paid out for investments in tangible and | ||||||
| intangible assets | –30.7 | –22.3 | –89.1 | –78.6 | –138.4 | –127.5 |
| Amounts paid out for investments in financial assets | 0.0 | 0.0 | 0.0 | –21.9 | 0.0 | –22.0 |
| Cash flow from the takeover of control of subsidiaries | 0.0 | 2.4 | 0.0 | 2.7 | 0.0 | 2.8 |
| Amounts received from the disposal of | ||||||
| tangible assets and intangible assets | 0.2 | –0.3 | 2.2 | 1.7 | 2.3 | 2.7 |
| –30.5 | –20.2 | –86.9 | –96.1 | –136.1 | –144.0 | |
| cash flow from financing activity Cash inflows / outflows for taking out / |
–0.2 | 50.0 | ||||
| repayment of financial debts | 2.8 | 21.8 | 11.8 | –40.9 | ||
| Cash inflow from the sale of own shares | 0.0 | 0.0 | 0.0 | 38.6 | 0.0 | 38.6 |
| Dividends paid | 0.0 | 0.0 | –43.4 | –39.4 | –43.4 | –39.4 |
| 0.0 | 0.0 | 0.0 | 0.0 | –0.2 | –4.6 | |
| –0.2 | 2.8 | –21.6 | 11.0 | 6.4 | –46.3 | |
| Payments for the costs of the cash capital increase Changes affecting payments |
4.8 | –47.5 | –236.5 | –207.0 | 34.8 | –91.5 |
| Effects of exchange rate changes on financial securities |
–4.2 | –0.1 | 1.0 | 0.6 | –2.0 | –0.2 |
| Cash and cash equivalents at the beginning of the period |
196.9 | 212.3 | 433.0 | 371.1 | 164.7 | 256.4 |
d . 05
Consolidated Cash Flow Statement Development of Group Equity
| Subscribed capital € million |
Capital provision € million |
Revenue provisions € million |
Total equity of shareholders of dmg mori aktien gesellschaft € million |
Minority interests' share of equity € million |
Total equity € million |
|
|---|---|---|---|---|---|---|
| As at 01 Jan. 2015 | 204.9 | 498.5 | 428.0 | 1,131.4 | 134.7 | 1,266.1 |
| Total comprehensive income | 0.0 | 0.0 | 81.1 | 81.1 | 6.5 | 87.6 |
| Consolidation measures / | ||||||
| Other changes | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Dividend | 0.0 | 0.0 | –43.4 | –43.4 | 0.0 | –43.4 |
| As at 30 September 2015 | 204.9 | 498.5 | 465.7 | 1,169.1 | 141.2 | 1,310.3 |
| Subscribed capital € million |
Capital provision € million |
Revenue provisions € million |
Total equity of shareholders of dmg mori aktien gesellschaft € million |
Minority interests' share of equity € million |
Total equity € million |
|
|---|---|---|---|---|---|---|
| As at 01 Jan. 2014 | 200.2 | 480.4 | 389.4 | 1,070.0 | 94.4 | 1,164.4 |
| Total comprehensive income | 0.0 | 0.0 | 36.9 | 36.9 | 7.2 | 44.1 |
| Consolidation measures / | ||||||
| Other changes | 4.7 | 18.1 | 27.7 | 50.5 | 15.0 | 65.5 |
| Dividend | 0.0 | 0.0 | –39.4 | –39.4 | 0.0 | –39.4 |
| As at 30 September 2014 | 204.9 | 498.5 | 414.6 | 1,118.0 | 116.6 | 1,234.6 |
d . 06 3rd quarter 2015
| Machine Tools € million |
Industrial Services € million |
Corporate Services € million |
Transition € million |
Group € million |
|
|---|---|---|---|---|---|
| Sales revenues | 315.8 | 242.7 | 0.1 | 0.0 | 558.6 |
| ebit | 23.9 | 30.4 | – 11.6 | 0.4 | 43.1 |
| Investments | 25.6 | 3.5 | 1.6 | 0.0 | 30.7 |
| Employees | 3,854 | 3,382 | 125 | 0 | 7,361 |
| Machine Tools € million |
Industrial Services € million |
Corporate Services € million |
Transition € million |
Group € million |
|
|---|---|---|---|---|---|
| Sales revenues | 285.1 | 242.8 | 0.1 | 0.0 | 528.0 |
| ebit | 23.0 | 30.7 | –9.8 | 0.0 | 43.9 |
| Investments | 11.8 | 9.9 | 0.6 | 0.0 | 22.3 |
| Employees | 3,758 | 3,260 | 113 | 0 | 7,131 |
| Machine Tools € million |
Industrial Services € million |
Corporate Services € million |
Transition € million |
Group € million |
|
|---|---|---|---|---|---|
| Sales revenues | 892.4 | 756.2 | 0.2 | 0.0 | 1,648.8 |
| ebit | 58.2 | 86.0 | – 32.9 | 0.2 | 111.5 |
| Investments | 59.8 | 18.1 | 2.2 | 0.0 | 80.1 |
| Employees | 3,854 | 3,382 | 125 | 0 | 7,361 |
| Machine Tools € million |
Industrial Services € million |
Corporate Services € million |
Transition € million |
Group € million |
|
|---|---|---|---|---|---|
| Sales revenues | 863.3 | 698.9 | 0.2 | 0.0 | 1,562.4 |
| ebit | 55.4 | 81.8 | –25.3 | –0.2 | 111.7 |
| Investments | 39.6 | 35.0 | 25.9 | 0.0 | 100.5 |
| Employees | 3,758 | 3,260 | 113 | 0 | 7,131 |
| group interim | opportunities | interim consolidated | ||
|---|---|---|---|---|
| management report | business development | and risk report | forecast | financial stateme nts |
Group Segmental Reporting
| information on | |
|---|---|
geographical areas
| 1st – 3rd quarter 2015 |
Rest of | North | |||||
|---|---|---|---|---|---|---|---|
| Germany | Europe | America | Asia | Others | Transition | Group | |
| € million | € million | € million | € million | € million | € million | € million | |
| Sales revenues with third parties | 633.2 | 647.1 | 99.9 | 241.7 | 26.9 | 1.648.8 | |
| Long-term assets | 265.2 | 338.0 | 16.3 | 29.2 | 2.9 | – 2.6 | 649.0 |
| 1st – 3rd quarter 2014 |
Germany € million |
Rest of Europe € million |
North America € million |
Asia € million |
Others € million |
Transition € million |
Group € million |
|---|---|---|---|---|---|---|---|
| Sales revenues with third parties | 623.6 | 604.7 | 78.0 | 227.0 | 29.1 | 1,562.4 | |
| Long-term assets | 267.2 | 266.5 | 17.4 | 19.9 | 3.9 | – 1.7 | 573.2 |
1 application of regulations
The consolidated financial statements of dmg mori aktiengesellschaft (until 5 June 2015: dmg mori seiki aktiengesellschaft) as of 31 December 2014 were prepared in accordance with the International Financial Reporting Standards (ifrs) and their interpretations as applicable at the reporting date and as adopted by the European Union. The consolidated interim financial statements as of 30 September 2015 were prepared on the basis of ias 34 Interim Financial Reporting. The group interim consolidated financial statements as of 30 September 2015 and the interim report for the period 1 January to 30 September 2015 was not reviewed or audited pursuant to Section 37w of the German Securities Trading Law (Wphg).
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 2014.
In view of the sense and purpose of the 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 as well as the consolidation methods applied have been retained when compared to financial year 2014 (see further discussions in the Notes to the Consolidated Financial Statements as of 31 December 2014), with the exception of the application of new financial accounting regulations.
None of the obligatory applications of ifrs amendments and new standards effective as of 1 January 2015 has any material effect on the dmg mori aktiengesellschaft reporting.
2 seasonal effects
As a globally operating company the dmg mori group is subject to various cyclical developments. In the sections "Overall economic development" and "Development of the Machine Tool Industry", the cyclical influences during the reporting period have been set out in detail. Industry-related seasonal fluctuations over the course of the year are normal and may lead to different sales revenues and as a result different earnings.
Selected Explanatory Notes to the Interim Consolidated Financial Statements
On 30 September 2015, the dmg mori group, including dmg mori aktiengesellschaft, comprised 100 companies, of which 95 companies were included in the interim financial statements as part of the full consolidation process. By the resolution of the General Meeting of 8 May 2015, dmg mori seiki aktiengesellschaft was renamed dmg mori aktiengesellschaft. The commercial register entry was made on 5 June 2015. Compared to 30 June 2015, the number of group companies did not change.
With no change to the consolidated financial statements 2014, dmg mori Australia Pty. Ltd. is classified as a joint venture and included at equity in the consolidated financial statements. In addition, Magnescale Co., Ltd., its subsidiaries Magnescale Europe GmbH, Wernau and Magnescale Americas, Inc., Davis (usa) and dmg mori Finance GmbH are classified as associated companies and are also included at equity in the interim consolidated financial statements.
opportunities
and risk report forecast
d . 07
| Group result excluding the profit share of other shareholders | € k | 68,864 |
|---|---|---|
| Average weighted number of shares (pieces) | 78,817,994 | |
| Earnings per share ac. to ias 33 | € | 0.87 |
There were no diluted earnings per share as at 30 September 2015.
30 September 2015 is € 75.3 million, whereas the fair value is € 77.9 million.
5 income statement, balance sheet, cash flow statement The income tax expense in the interim reporting period is determined pursuant to ias 34.30(c) on the basis of the current effective tax rate expected for the entire year. Pursuant to ias 34.16a, all types of financial assets and liabilities are to be stated at fair value. In the notes on the consolidated financial statements as at 31 December 2014, the valuation rates of the financial instruments are explained in detail. The accounting as at 30 September 2015 is unchanged. There are only differences between the book values and fair value for short-term and long-term financial debts. The book value as of
Tools"; the business with the products of our cooperation partner is accounted for under "Industrial Services". The demarcation of the segments and / or the determination of the segment results remain unchanged from 31 December 2014. The business activities of the segments are disclosed in detail in the notes to the consolidated financial statements as of 31 December 2014.
Selected Explanatory Notes to the Interim Consolidated Financial Statements
There have not been any material changes as of 30 September 2015. As presented in the notes to the financial statements as of 31 December 2014, numerous business relations continue to exist with related parties, which are conducted on the basis of standard market terms and conditions. Related companies are, according to ias 24.9 b), all companies which are part of the group of companies or those in which dmg mori company limited has holdings. The statement of the relationships to related companies in the balance sheet is, analogous to the consolidated financial statements as at 31 December 2014, presented in a differentiated way. dmg mori company limited is classified as an associated company, dmg mori Australia Pty. Ltd. as a joint venture and dmg mori Finance GmbH, Magnescale Co. Ltd and its subsidiaries as affiliates. Other related companies of the dmg mori group are all other companies which are part of the group of consolidated companies of dmg mori company limited.
dmg mori company limited now holds a 52.54% stake of the share capital and the voting rights of dmg mori aktiengesellschaft. More details on the takeover of shares can be found in the interim reports of the first quarter or the half-year, under Sections "Share" and "Latest News".
10 events occuring after the balance sheet date
Significant events occurring after the end of the reporting period are presented in the "Forecast". In addition, no other significant events have occurred after the reporting date of interim financial statements.
dmg mori aktiengesellschaft does not have any operative business but manages the dmg mori group across functions, in the capacity of a management holding company. Sales revenues amounted to € 15.4 million (previous year: € 11.3 million). Besides rental income, this amount includes, without exception, revenues resulting from the exercise of holding functions for the group.
As at 30 September 2015, dmg mori aktiengesellschaft was organised in five executive units with the following functional areas: corporate strategy, key accounting, human resources, purchasing, auditing, compliance, and corporate public relations; sales and services; finances, accounting, controlling, taxes, risk management, investor relations as well as information technologies (it), and process management, industrial services, product development, production and technology.
On 30 September 2015, the number of employees at dmg mori aktiengesellschaft was 125 (31 Dec. 2014: 115).
Details of dmg mori aktiengesellschaft Responsibility Statement
To the best of our knowledge, and in accordance with the applicable accounting and reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the results of operations, net worth and financial position of the group, and the interim management report of the group includes a fair review of the development and performance of the business and the position of the group, together with a description of the material opportunities and risks associated with the expected development of the group for the remaining business year.
Bielefeld, 29. October 2015 dmg mori aktiengesellschaft The Executive Board
Dipl.-Kfm. Christian Thönes
Dipl.-Kfm. Dr. Rüdiger Kapitza Dipl.-Kfm. Dr. Thorsten Schmidt
Dipl.-Kfm. André Danks Dipl.-Kfm. Dr. Maurice Eschweiler
Supervisory Board: Prof. Dr.-Ing. Raimund Klinkner, 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, rouble, yen and renminbi | 2 |
|---|---|---|
| a . 02 | ifo business climate | 3 |
| dmg mori group structure | 4 |
|---|---|
| Sales revenues dmg mori group | 4 |
| Order intake dmg mori group | 5 |
| Order intake dmg mori group by regions | 6 |
| Order backlog dmg mori group | 7 |
| Net worth | 8 |
| Cash flow | 9 |
| Contribution of each segment / division to investments | |
| in fixed assets and intangible assets | 10 |
| Segment key figures of the dmg mori group | 11 |
| Key figures "Machine Tools" segment | 12 |
| Distribution of sales revenues by segments within the dmg mori group | 13 |
| Key figures "Industrial Services" segment | 14 |
| Key figures "Corporate Services" segment | 15 |
| The dmg mori aktiengesellschaft share in comparison | |
| with the mdax® January 2015 to October 2015 | 17 |
| Key Figures for the dmg mori aktiengesellschaft | 18 |
| c . 01 | Machine tools consumption worldwide | 25 |
|---|---|---|
| Consolidated Income Statement | 28 |
|---|---|
| Consolidated Statement of other Comprehensive Income | 29 |
| Consolidated Balance Sheet | 30 |
| Consolidated Cash Flow Statement | 32 |
| Development of Group Equity | 33 |
| Group Segmental Reporting | 34 |
| Earnings per share | 37 |
List of Tables and Charts information
Financial Calendar
| Press conference on Financial Statements 10 march 2016 |
|---|
| First Quarterly Report 2016 (1 January to 31 March) 26 april 2016 |
| Annual General Meeting 06 may 2016 |
| Second Quarterly Report 2016 (1 April to 30 June) 28 july 2016 |
| Third Quarterly Report 2016 (1 July to 30 September) 27 oct. 2016 |
subject to alteration
dmg mori aktiengesellschaft Gildemeisterstraße 60 d-33689 Bielefeld
Frank Ossenschmidt Boris Bolwin Telephone: + 49 (0) 52 05 / 74 - 3073 Telephone: + 49 (0) 52 05 / 74 - 3115 Telefax: + 49 (0) 52 05 / 74 - 45 3073 Telefax: + 49 (0) 52 05 / 74 - 45 3115 E-Mail: [email protected] E-Mail: [email protected]
| Languages: | This report is available in German and English |
|---|---|
| Download: | www.ag.dmgmori.com |
| Order: | We will gladly send you further copies and additional information on |
| dmg mori aktiengesellschaft free of charge upon request. |
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 dmg mori aktiengesellschaft differing materially from or being more negative than that those expressly or implicitly assumed or described in these statements. The business activities of dmg mori aktiengesellschaft are subject to a series of risks and uncertainties, which may result in forward-looking statements estimates or forecasts becoming inaccurate. dmg mori aktiengesellschaft 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, dmg mori aktiengesellschaft 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 dmg mori aktiengesellschaft group; changes in corporate strategy; interruptions in the supply chain, including the inability of a third party, for example due to natural catastrophe, to supply pre-fabricated 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 dmg mori aktiengesellschaft 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.
dmg mori aktiengesellschaft neither intends to nor does dmg mori aktiengesellschaft 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.
There are two companies using the name "dmg mori": dmg mori aktiengesellschaft with registered office in Bielefeld, Germany, and dmg mori company limited with registered office in Nagoya, Japan. This report refers exclusively to dmg mori aktiengesellschaft. If reference is made in this report to the "dmg mori group", this refers exclusively to dmg mori aktiengesellschaft and its group companies.
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dmg mori aktiengesellschaft Gildemeisterstraße 60 d-33689 Bielefeld Local Court Bielefeld hrb 7144 Phone: + 49 (0) 52 05 / 74-0 Fax: + 49 (0) 52 05 / 74-45 3273 Internet: www.dmgmori.com E-Mail: [email protected]
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