Quarterly Report • Apr 26, 2016
Quarterly Report
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1st Quarter 2016
the global machine tool market is expected to grow this year merely by 1.9% according to the most recent forecast (April 2016) of the German Machine Tool Builders' Association (vdw) and Oxford Economics. Compared to the autumn forecast of October 2015 (4.1%), the growth rate has thus been revised downward by around half.
The year started off according to plan for dmg mori aktiengesellschaft: In the first quarter, order intake amounted to € 591.6 million and was thus at about the previous year´s level (€ 587.2 million). Sales revenues amounted to € 541.4 million (previous year: € 538.4 million). As in the previous year, ebitda amounted to € 42.4 million, ebit reached € 28.0 million (previous year: € 30.0 million) and ebt was € 25.8 million (previous year: € 27.9 million). As of 31 March 2016, the group reported earnings after taxes of € 18.1 million (previous year: € 19.5 million).
At the beginning of April, dmg mori company limited increased its shareholding in dmg mori aktiengesellschaft to 76.03%. This is another important step for the successful cooperation established in 2009. Together with our Japanese partner, we will continue to optimise our global sales and service structures and thereby strengthen our international market presence. Our new technology centre in Moscow is due to open soon. The grand opening will take place on 23 May, the first day of the Metalloobrabotka, a key trade show for the Russian market. In South Korea, the world's fifth largest market for machine tools, the opening of the new technology centre is planned for autumn. We also perceive major potentials of our cooperation in the joint product development and production as well as in purchasing through the expansion of our global supplier partnerships.
We confirm our forecast for financial year 2016. We are expecting a slightly better order intake than in the previous year and are planning again sales revenues of around € 2.3 billion. ebt will be significantly below the high level of the record year 2015. We are also expecting a slightly improved positive free cash flow. As a result of dmg mori company limited intending to conclude a domination and profit transfer agreement, we are unable, at present, to make any comments on a dividend payment for financial year 2016.
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 31 March 2016 | ||||
|---|---|---|---|---|---|
| 31 March 2016 € million |
31 Dec. 2015 € million |
31 March 2015 € million |
€ million | to 31 March 2015 % |
|
| Sales revenues | |||||
| Total | 541.4 | 2,304.7 | 538.4 | 3.0 | 1 |
| Domestic | 184.6 | 762.1 | 184.7 | –0.1 | 0 |
| International | 356.8 | 1,542.6 | 353.7 | 3.1 | 1 |
| % International | 66 | 67 | 66 | ||
| Order intake | |||||
| Total | 591.6 | 2,282.8 | 587.2 | 4.4 | 1 |
| Domestic | 199.0 | 785.0 | 207.7 | –8.7 | –4 |
| International | 392.6 | 1,497.8 | 379.5 | 13.1 | 3 |
| % International | 66 | 66 | 65 | ||
| Order backlog | |||||
| Total | 927.9 | 884.2 | 1,183.1 | –255.2 | –22 |
| Domestic | 350.1 | 335.7 | 335.3 | 14.8 | 4 |
| International | 577.8 | 548.5 | 847.8 | –270.0 | –32 |
| % International | 62 | 62 | 72 | ||
| Investments | 10.8 | 130.6 | 25.4 | –14.6 | –57 |
| of which tangible assets / | |||||
| intangible assets | 10.8 | 130.6 | 25.4 | ||
| Personnel costs | 139.3 | 545.5 | 135.8 | 3.5 | 3 |
| Personnel ratio in % | 25.2 | 23.2 | 23.1 | ||
| ebitda | 42.4 | 243.1 | 42.4 | 0.0 | 0 |
| ebit | 28.0 | 185.9 | 30.0 | –2.0 | –7 |
| ebt | 25.8 | 217.3 | 27.9 | –2.1 | –8 |
| Earnings after taxes | 18.1 | 159.6 | 19.5 | –1.4 | –7 |
| Changes 31 March 2016 | |||||
| to 31 Dec. 2015 | |||||
| 31 March 2016 | 31 Dec. 2015 | 31 March 2015 | % |
| 31 March 2016 | 31 Dec. 2015 | 31 March 2015 | % | ||
|---|---|---|---|---|---|
| Employees | 7,216 | 7,142 | 6,975 | 74 | 1 |
| plus trainees | 275 | 320 | 261 | –45 | –14 |
| Total employees | 7,491 | 7,462 | 7,236 | 29 | 0 |
Page reference for further information in the Interim Report
providing visual representation Reference to further / updated
Reference to a diagram or table
information in the internet
Sales Revenues Order Intake ebit Employees
| 2010 | 3,097 | 2,280 | 68 | 5,445 | |||||
|---|---|---|---|---|---|---|---|---|---|
| 2011 | 3,397 | 2,564 71 |
6,032 | ||||||
| 2012 | 3,514 | 2,902 | 80 | ||||||
| 2013 | 3,680 | 2,944 | 98 | 6,496 6,722 |
|||||
| 2014 | 3,761 | 3,290 115 |
7,166 | ||||||
| 31 March 2015 | 3,765 | 3,350 | 121 7,236 |
||||||
| 2015 | 3,858 | 3,480 | 124 7,462 | ||||||
| 31 March 2016 | 3,835 | 3,543 | 113 7,491 |
||||||
| 0 | 1,000 | 2,000 | 3,000 | 4,000 | 5,000 | 6,000 | 7,000 | ||
| "Machine Tools" | "Industrial Services" | "Corporate Sevices" |
| Key Figures | ||
|---|---|---|
| 2 – 19 | Group Interim Management Report | |
| 2 | Overall Economic Development | |
| 3 | Development of the Machine Tool Industry | |
| 4 – 17 | Business Development of the dmg mori Group | |
| 4 | Sales Revenues | |
| 4 | Order Intake | |
| 6 | Order Backlog | |
| 7 | Results of Operations, Net Worth and Financial Position | |
| 9 | Investments | |
| 10 | Segmental Reporting | |
| "Machine Tools" 11 |
||
| "Industrial Services" 12 |
||
| "Corporate Services" 14 |
||
| 14 | Employees | |
| 15 | Share | |
| 16 | Research and Development | |
| 17 – 19 | Forecast | |
| 18 | Latest news | |
| 19 | Future Business Development | |
| 20 – 29 | Interim Consolidated Financial Statements | |
| of dmg mori aktiengesellschaft | ||
| as at 31 March 2016 | ||
| 20 | Consolidated Income Statement | |
| 21 | Consolidated Statement of other Comprehensive Income | |
| 22 | Consolidated Balance Sheet | |
| 24 | Consolidated Cash Flow Statement | |
| 25 | Development of Group Equity | |
| 25 | Group Segmental Reporting | |
| 26 | Selected Explanatory Notes to the Interim | |
| Consolidated Financial Statements | ||
| 30 – 31 | Additional Information | |
| 30 | List of Tables and Charts | |
| 31 | Financial Calendar | |
The overall economic development in the first quarter 2016 was characterised by strong insecurities. In Asia, the dynamics have slowed down during the reporting period. Particularly in China, current cyclical indicators suggest a continued decline of growth rates. The overall economy in Japan is recovering only slowly. Positive signals are again received from the Western industrialised countries. In the usa, a rising economic growth is expected in the first half of the year. Europe continues to stay on a modest growth course. Besides Great Britain and Spain, primarily the countries outside of the Euro zone make a positive contribution. In Germany, the cyclical development continued on its growth course in the beginning of the year. The German economy has grown by 0.5% in comparison to the previous quarter according to the German Economic Research Institute (diw).
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 first quarter 2016 compared to the value in the previous quarter. Compared to the median value of the euro, the U.S. dollar was at usd 1.10 (previous year's quarter: usd 1.13). Thus, the euro fell by 2.1% compared to the usd. The median value of the Chinese renminbi was noted at 7.21 renminbi (previous year's quarter: 7.02 renminbi). Thus, the euro rose by 2.7% compared to the renminbi. The median value of the yen fell by 5.3% compared to the euro and it was noted at 127.0 yen (previous year's quarter: 134.1 yen). Compared to the median value of the rouble, the median value of the euro rose by 22.2% and it was noted at 82.5 rouble (previous year's quarter: 71.0 rouble).
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 global machine tool market is expected to grow only modestly in 2016. The German Machine Tool Builders' Association (vdw) and the British economic research institute Oxford Economics expect in their latest forecast (status: April 2016) a growth of global consumption by only 1.9% to reach € 68.6 billion. As in the previous years, the autumn forecast (2015: + 4.1%) was significantly corrected downward; currently, this year by 2.2 percentage points. Demand in Asia, according to the current forecast, is expected to rise by 2.7% (previously: + 4.4%). For America, a decline in consumption by 2.7% is now forecast (previously: + 2.0%). Demand in Europe is expected to increase by only 2.1% (previously: + 4.1%).
The German machine tool market is expected likewise to grow only modestly in the course of the year. The order intake of German machine tool manufacturers stagnated in the beginning of the year. Oxford Economics forecasts a growth of 1.5% for the whole year (2015: + 4.7%).
The ifo business climate index was on a downward trend in the beginning of the year. The majority of the main buyer industries, in contrast, continue to evaluate the present business situation as being positive.
Source: ifo Institut, Munich
corporate services
machine tools
gildemeister Beteiligungen GmbH, Bielefeld Bielefeld
| Turning | Milling | Advanced Technologies |
|
|---|---|---|---|
| gildemeister Dreh maschinen GmbH (Bielefeld) |
deckel maho Pfronten GmbH (Pfronten) |
sauer GmbH (Idar Oberstein, Pfronten) |
|
| graziano Tortona S.r.l. (Tortona / Italy) |
deckel maho Seebach GmbH (Seebach) |
gildemeister Italiana S.p.A. (Bergamo / Italy)
As of 31 March 2016, the dmg mori group, including dmg mori aktiengesellschaft comprised 100 entities. Compared to 31 December 2015, the number of group companies did not change.
Sales revenues in the first quarter were € 541.4 million and thus exceeded the previous year's figure (+ 1%; € 538.4 million).
In the "Machine Tools" segment, sales revenues rose by € 25.0 million to € 297.9 million (previous year: € 272.9 million). Sales revenues of the "Industrial Services" segment amounted to € 243.4 million (previous year: € 265.4 million).
Domestic group sales revenues were € 184.6 million (previous year: € 184.7 million), international sales increased by 1% to € 356.8 million. As in the previous year, the export share amounted to 66%.
sales revenues dmg mori group b . 02
Order intake
Segments p. 10 – 14 In the first quarter, order intake reached € 591.6 million and was thus at about the previous year´s level (€ 587.2 million). In the "Machine Tools" segment, order intake was at € 328.5 million in the first quarter (previous year: € 321.9 million). The "Industrial Services" segment recorded order intake of € 263.0 million (previous year: € 265.2 million);
Segments p. 10 – 14 Sales Revenues Order Intake
5
| industrial services | ||||
|---|---|---|---|---|
| dmg mori ecoline Holding ag Winterthur / Switzerland |
Sales and Service locations worldwide (164) |
|||
| Systems | ecoline Association | dmg mori Sales and Service Holding ag Switzerland |
||
| (Wernau, Hüfingen) | famot Pleszew Sp.z o.o. (Pleszew / Poland) |
dmg mori Europe Winterthur (Switzerland) (46) |
dmg mori Germany Stuttgart (8) |
|
| deckel maho gildemeister (Shanghai) |
dmg mori Asia Shanghai, Singapore, Tokyo (55) |
dmg mori Services Bielefeld, Pfronten (23) |
||
| (Shanghai / China) | dmg mori America | gildemeister energy | ||
| Ulyanovsk Machine Tools ooo |
solutions GmbH Würzburg (5) |
|||
| dmg Electronics GmbH | dmg mori Systems GmbH Machine Tools Co., Ltd., (Ulyanovsk / Russia) |
Itasca (Illinois) (27) |
of which € 246.5 million was contributed by the Services division (previous year: € 256.0 million). This figure includes orders for machines of dmg mori company limited in the amount of € 85.0 million (previous year: € 107.4 million). The primary service business developed positively. Order intake in Energy Solutions amounted to € 16.5 million (previous year: € 9.2 million).
Domestic orders amounted to € 199.0 million (previous year: € 207.7 million). International orders amounted to € 392.6 million (previous year: € 379.5 million). Thus the share of foreign business rose to 66% (previous year: 65%).
order intake dmg mori group in € million b . 03
With order intake of € 190.8 million and 681 products sold, dmg mori takes positive stock of this year's open house exhibition in Pfronten.
In the individual market regions, order intake developed as follows:
Segments p. 10 – 14
On 31 March 2016, order backlog within the group was € 927.9 million (31 Dec. 2015: € 884.2 million). Domestic backlog increased compared with the end of 2015 by € 14.4 million to € 350.1 million. The backlog of international orders rose by € 29.3 million to € 577.8 million. International orders account for 62% of existing orders.
The backlog developed in the individual segments as follows:
in € million
* Methodical change in determining the order backlog since April 2015. For details, see chapter Order Backlog in the Annual Report 2015.
Order Intake Order Backlog Results of Operations, Net Worth and Financial Position
different degrees of capacity utilization.
The order backlog for "Machine Tools" gives rise to a forward order book of an average of approximately four months. In this respect, the individual production companies show
As of 31 March 2016, the key income figures of the dmg mori group developed as follows: As in the previous year, ebitda amounted to € 42.4 million, ebit was € 28.0 million (previous year: € 30.0 million) and ebt reached € 25.8 million (previous year: € 27.9 million). As of 31 March 2016, the group reports earnings after taxes of € 18.1 million (previous year: € 19.5 million).
Sales revenues were € 541.4 million (previous year: € 538.4 million). Total operating revenue decreased to € 553.5 million (previous year: € 588.5 million) with a lower reduction of inventories than in the previous year. The cost of materials amounted to € 286.0 million (previous year: € 326.7 million). The materials ratio amounted to 51.7% (previous year: 55.5%). Gross income rose by € 5.7 million to € 267.5 million (previous year: € 261.8 million). Personnel expenses rose to € 139.3 million (previous year: € 135.8 million). The personnel expenses ratio was 25.2% (previous year: € 23.1%).
The balance of other income and expenses amounted to € 85.8 million (previous year: € 83.6 million). As of 31 March 2016, depreciation amounted to € 14.4 million (previous year: € 12.4 million) due to the high investment volume in the previous years. The financial result in the first quarter amounted to € – 2.2 million (previous year: € – 2.1 million). Earnings after taxes decreased to € 18.1 million (previous year: € 19.5 million), tax expenses in the first quarter were thus € 7.7 million (previous year: € 8.4 million). As in the previous year, the tax ratio amounted to 30.0%.
| 31 March 2016 € million |
31 Dec. 2015 € million |
31 March 2015 € million |
|
|---|---|---|---|
| Net worth | |||
| Long-term assets | 847.1 | 846.4 | 968.1 |
| Short-term assets | 1,357.7 | 1,437.5 | 1,325.7 |
| Equity | 1,377.9 | 1,357.5 | 1,360.6 |
| Outside capital | 826.9 | 926.4 | 933.2 |
| Balance sheet total | 2,204.8 | 2,283.9 | 2,293.8 |
Selected Explanatory Notes to the Interim Consolidated Financial Statements p. 26
The balance sheet total as of 31 March 2016 reduced to € 2,204.8 million (31 Dec. 2015: € 2,283.9 million).
Under assets, long-term assets rose slightly by € 0.7 million to € 847.1 million compared to 31 December 2015. The intangible assets and property, plants and equipment rose slightly to € 674.0 million (31 Dec. 2015: € 673.6 million). Financial assets amounted to € 69.1 million (31 Dec. 2015: € 69.1 million).
Short-term assets amounted to € 1,357.7 million (31 Dec. 2015: € 1,437.5 million). Inventories rose by € 25.7 million to € 548.0 million. Essentially, the stock of finished goods and goods for resale increased by € 18.0 million to € 215.6 million. The increase was primarily due to preliminary work for planned sales revenues with end customers. The stock of unfinished goods decreased to € 119.8 million (€ –5.8 million). Raw materials and consumables grew to € 208.6 million (€ +12.2 million). The turnover rate of inventories was 4.0 (previous year: 3.7). Trade debtors rose by increased sales and a reduced factoring volume by € 45.5 million to € 286.5 million. Liquid funds amounted to € 394.3 million, due to the development of free cash flow in the first quarter (31 Dec. 2015: € 552.1 million).
Under equity and liabilities, equity rose by € 20.4 million to € 1,377.9 million. The equity ratio rose to 62.5% (31 Dec. 2015: 59.4%). Outside capital decreased to € 826.9 million (31 Dec. 2015: € 926.4 million). Provisions reduced as planned by € 12.6 million to € 281.3 million. Trade creditors decreased as scheduled by € 81.0 million to € 279.7 million.
The group's financial position developed in the first quarter as follows: As of 31 March 2016, cash flow from operating activities was € –147.9 million (previous year: € – 164.6 million). The earnings before taxes (ebt) of € 25.8 million (previous year: € 27.9 million) and depreciation of € 14.4 million (previous year: € 12.4 million) made a positive contribution to cash flow. The rise in inventories by € 26.9 million as well as in trade debtors by € 43.7 million and the decrease of trade creditors by € 80.2 million reduced cash flow, as described above.
Cash flow from investment activity changed to € – 10.7 million (previous year: € – 33.9 million). Payments for investments in intangible assets and property, plant and equipment were € – 10.8 million (previous year: € – 34.4 million). As in the previous year, there were no payments for investments in financial assets.
Cash flow from financing activity was € +1.8 million (previous year: € +1.2 million). In the first quarter, free cash flow amounted to € – 158.6 million (previous year: € – 198.5 million); this trend is primarily due to the planned reduction of liabilities and the increase in inventory because of the cyclical nature of our business for planned sales activities.
In the second half of the year, we are planning as every year an increasing surplus in liquidity. In light of the planned investments in property, plant and equipment and intangible assets, which are to be financed largely from own funds, and also based on the profit forecasts, we are planning with a slightly improved positive free cash flow for the entire year 2016.
As of 31 March 2016, we are showing surplus funds of € 340.1 million (previous year: € 193.8 million).
Selected Explanatory Notes to the Interim Consolidated Financial Statements p. 28
Investments p. 9
| group interim management report |
business development | forecast | interim consolidated financial statements |
additional information |
|---|---|---|---|---|
| Results of Operations, Net Worth and Financial |
| cash flow | 2016 | 2015 |
|---|---|---|
| 1st quarter | 1st quarter | |
| € million | € million | |
| Cash flow from operating activities | –147.9 | –164.6 |
| Cash flow from investment activity | –10.7 | –33.9 |
| Cash flow from financing activity | 1.8 | 1.2 |
| Changes in cash and cash equivalents | –157.8 | –189.4 |
| Liquid funds at the start of the reporting period | 552.1 | 433.0 |
| Liquid funds at the end of the reporting period | 394.3 | 243.6 |
Investments in property, plant and equipment and intangible assets in the first three months amounted to € 10.8 million (previous year's value: € 25.4 million). Here, particularly the already started projects to strengthen our worldwide sales and service presence were a priority. Our new technology centre in Moscow is due to open soon. The grand opening will take place on 23 May, the first day of the Metalloobrabotka, a key trade show for the Russian market. In South Korea, the world's fifth largest market for machine tools, the opening of the new technology centre is planned for autumn. In the emergent business field of Advanced Technologies, we will expand our location in Idar-Oberstein and also complete the already started expansion of assembly and logistics. The grand opening is scheduled for 29 June. In addition, we are investing in tools, models and equipment necessary for production, as well as in the development of innovative products.
Position Investments
b . 09
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 "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 31 March 2016 | ||||
| 31 March 2016 | 31 Dec. 2015 | 31 March 2015 | to 31 March 2015 | ||
| € million | € million | € million | € million | % | |
| Sales Revenues | 541.4 | 2,304.7 | 538.4 | 3.0 | 1 |
| Machine Tools | 297.9 | 1,264.5 | 272.9 | 25.0 | 9 |
| Industrial Services | 243.4 | 1,040.0 | 265.4 | –22.0 | –8 |
| Corporate Services | 0.1 | 0.2 | 0.1 | 0.0 | |
| Order Intake | 591.6 | 2,282.8 | 587.2 | 4.4 | 1 |
| Machine Tools | 328.5 | 1,212.5 | 321.9 | 6.6 | 2 |
| Industrial Services | 263.0 | 1,070.1 | 265.2 | –2.2 | –1 |
| Corporate Services | 0.1 | 0.2 | 0.1 | 0.0 | |
| ebit | 28.0 | 185.9 | 30.0 | –2.0 | –7 |
| Machine Tools | 14.9 | 102.6 | 13.9 | 1.0 | 7 |
| Industrial Services | 21.8 | 126.6 | 24.5 | –2.7 | –11 |
| Corporate Services | –8.8 | –42.6 | –8.2 | –0.6 |
information
Segmental Reporting "Machine Tools"
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 31 March 2016 | ||||
|---|---|---|---|---|---|
| "machine tools" segment | 31 March 2016 | 31 Dec. 2015 | 31 March 2015 | to 31 March 2015 | |
| € million | € million | € million | € million | % | |
| Sales revenues | |||||
| Total | 297.9 | 1,264.5 | 272.9 | 25.0 | 9 |
| Domestic | 105.1 | 420.8 | 90.2 | 14.9 | 17 |
| International | 192.8 | 843.7 | 182.7 | 10.1 | 6 |
| % International | 65 | 67 | 67 | ||
| Order intake | |||||
| Total | 328.5 | 1,212.5 | 321.9 | 6.6 | 2 |
| Domestic | 105.8 | 417.7 | 115.8 | –10.0 | –9 |
| International | 222.7 | 794.8 | 206.1 | 16.6 | 8 |
| % International | 68 | 66 | 64 | ||
| Order backlog | |||||
| Total | 508.7 | 478.1 | 579.1 | –70.4 | –12 |
| Domestic | 138.0 | 137.3 | 166.0 | –28.0 | –17 |
| International | 370.7 | 340.8 | 413.1 | –42.4 | –10 |
| % International | 73 | 71 | 71 | ||
| Investments | 5.0 | 82.5 | 16.3 | –11.3 | –69 |
| ebit | 14.9 | 102.6 | 13.9 | 1.0 | 7 |
| Changes 31 March 2016 to 31 Dec. 2015 |
|||||
| 31 March 2016 | 31 Dec. 2015 | 31 March 2015 | % | ||
| Employees | 3,618 | 3,599 | 3,552 | 19 | 1 |
| plus trainees | 217 | 259 | 213 | –42 | –16 |
| Total employees | 3,835 | 3,858 | 3,765 | –23 | –1 |
The "Machine Tools" segment developed in the first quarter as follows: sales revenues rose by € 25.0 million or 9% to € 297.9 million (previous year: € 272.9 million). As at 31 March 2016, the "Machine tools" segment contributed 55% of group sales revenues (previous year: 51%).
With respects to the total sales revenues of the group, the "Machine Tools", "Industrial Services" and "Corporate Services" contributed as follows:
Order intake in the "Machine Tools" segment was € 328.5 million and was thus by € 6.6 million or 2% over the previous year's quarter (€ 321.9 million). Domestic orders decreased by 9% or € 10.0 million to € 105.8 million (previous year: € 115.8 million) and international orders rose by 8% or € 16.6 million to € 222.7 million (previous year: € 206.1 million). "Machine Tools" accounted for 56% of all incoming orders in the group (previous year: 55%). The order backlog on 31 March amounted to € 508.7 million (31 Dec. 2015: € 478.1 million). ebit rose to € 14.9 million (previous year: € 13.9 million). As at 31 March 2016, the number of employees remained almost unchanged with 3,835 compared to the 2015 years' end number (3,858).
The "Industrial Services" segment comprises the business activities of the Services and Energy Solutions divisions.
In the Services division, we combine the marketing activities and the LifeCycle Services for both our machines and those of our cooperation partner. With the aid of the dmg mori LifeCycle Services, our customers optimise the productivity of their machine tools over their entire life cycle – from commissioning until part exchange as a used machine. The wide range of service contracts, repair and training services offered to our customers ensures the maximum cost-efficiency of their machine tools.
b . 12
Segmental Reporting "Machine Tools" "Industrial Services"
In Energy Solutions we focus on the business areas of Energy Efficiency, Services, Components and Storage Technology.
| 31 March 2016 € million |
31 Dec. 2015 € million |
31 March 2015 | Changes 31 March 2016 | |
|---|---|---|---|---|
| € million | € million | to 31 March 2015 % |
||
| 243.4 | 1,040.0 | 265.4 | –22.0 | –8 |
| 79.4 | 341.1 | 94.4 | –15.0 | –16 |
| 164.0 | 698.9 | 171.0 | –7.0 | –4 |
| 67 | 67 | 64 | ||
| 263.0 | 1,070.1 | 265.2 | –2.2 | –1 |
| 93.1 | 367.1 | 91.8 | 1.3 | 1 |
| 169.9 | 703.0 | 173.4 | –3.5 | –2 |
| 65 | 66 | 65 | ||
| 419.2 | 406.1 | 604.0 | –184.8 | –31 |
| 212.1 | 198.4 | 169.3 | 42.8 | 25 |
| 207.1 | 207.7 | 434.7 | –227.6 | –52 |
| 49 | 51 | 72 | ||
| 5.5 | 41.4 | 8.7 | –3.2 | –37 |
| 21.8 | 126.6 | 24.5 | –2.7 | –11 |
| Changes 31 March 2016 | ||||
| to 31 Dec. 2015 | ||||
| 31 March 2016 | 31 Dec. 2015 | 31 March 2015 | % | |
| 3,485 | 3,419 | 3,302 | 66 | 2 |
| 58 | 61 | 48 | –3 | –5 |
| 3,543 | 3,480 | 3,350 | 63 | 2 |
In the first quarter, sales revenues in the "Industrial Services" segment decreased by € 22.0 million or 8% to € 243.4 million (previous year: € 265.4 million). Services recorded sales revenues of € 228.5 million (previous year: € 254.8 million). The decline compared to the same quarter in the previous year resulted essentially from lower trading volume earned with machines of our cooperation partner. Sales revenues in Energy Solutions were € 14.9 million (previous year: € 10.6 million). "Industrial Services" contributed a total share of 45% of the group sales revenues (previous year: 49%). In the first quarter, order intake totalled € 263.0 million (previous year: € 265.2 million). The contribution of Services fell by € 9.5 million to € 246.5 million (previous year: € 256.0 million). While order intake in our original business, LifeCycle Services (e.g. spare parts, maintenance and repair), and sales commissions rose to € 161.5 million (previous year: € 148.6 million), orders for machines of our cooperation partner reduced to € 85.0 million (previous year: € 107.4 million). "Industrial Services" contributed a total share of 44% of group incoming orders (previous year: 45%). The share of order intake attributed to Energy Solutions amounted to € 16.5 million (previous year: € 9.2 million). The order backlog was € 419.2 million (31 Dec. 2015: € 406.1 million).
ebit in the first three months amounted to € 21.8 million (previous year: € 24.5 million). The number of employees in the "Industrial Services" segment at the end of the first quarter 2016 was 3,543 (31 Dec. 2015: 3,480). The risen number of employees foremost results from new hiring at our international sales and service companies in South-East Europe, France and Spain.
| key figures "corporate services" segment |
31 March 2016 € million |
31 Dec. 2015 € million |
31 March 2015 € million |
Changes 31 March 2016 to 31 March 2015 € million |
|---|---|---|---|---|
| Sales revenues | 0.1 | 0.2 | 0.1 | 0.0 |
| Order intake | 0.1 | 0.2 | 0.1 | 0.0 |
| Investments | 0.3 | 6.7 | 0.4 | –0.1 |
| –8.8 | –42.6 | –8.2 | –0.6 | |
| ebit | ||||
| Changes 31 March 2016 | ||||
| 31 March 2016 | 31 Dec. 2015 | 31 March 2015 | to 31 Dec. 2015 % |
The "Corporate Services" segment primarily includes the dmg mori aktiengesellschaft with its group wide holding functions. ebit amounted to € – 8.8 million (previous year: € – 8.2 million). The financial result amounted to € 1.3 million (previous year: € 1.0 million). ebt amounted to € – 7.5 million (previous year: € – 7.2 million).
On 31 March 2016, the group had 7,491 employees of whom 275 were trainees. The number of employees remained almost constant compared to the end of 2015 (31 Dec. 2015: 7,462). In the "Machine Tools" segment, the number of employees remained almost unchanged. The number of employees in the "Industrial Services" was increased at our local sales and service companies in South-East Europe, France and Spain. At the end of the first quarter, there were 4,074 domestic employees (54%) and 3,417 employees (46%) working for the international companies. Personnel costs amounted to € 139.3 million (previous year: € 135.8 million). The personnel ratio was 25.2% (previous year's period: 23.1%).
Employees Share
The share price of dmg mori aktiengesellschaft at the start of the year was quoted at € 37.05 (04 January 2016). At the end of the first quarter, the share closed at a price of € 40.92 (31 March 2016). At the present time, the company is being analysed in studies by nine banks. Four analysts recommend holding on to the share, while five banks recommend selling the share.
* 02 January 2012 = 100, stock performance indexed, xetra stock prices Source: Deutsche Börse Group
For the first three months, based on the number of shares of 78.8 million, a turnover rate of 0.1 times (previous years' period: 0.5 times) was calculated. At the German stock exchanges, the trading volume averaged 86,000 shares per trading day (previous year: 647,000 shares). The trading volume in the previous year was significantly influenced by the tender offer of dmg mori company limited.
additional information
Expenses for research and development amounted to € 10.9 million in the first quarter (previous year: € 11.1 million). 512 employees are involved in the development of new products. This is 14% of the total workforce at the plants. In financial year 2016, we are presenting a total of 12 new developments together with our Japanese partner. We presented six world premieres and innovative dmg mori technology and software solutions at our annual open house exhibition in Pfronten.
In the era of Industrie 4.0, we place particular focus on integrated technology and software solutions. Our app-based control and operating software, celos, allows us to currently offer our customers the key factor for an intelligent, networked production. celos is compatible with other systems, such as pps or erp and enables the networking with cad / cam applications. Our 16 celos Apps support the general management, documentation and visualisation of order, process and machine data. By connecting machines to the network via celos, set-up times can be reduced by up to 30%.
Our 24 exclusive dmg mori technology cycles are interactive and user friendly software solutions for programming our machines. Complex machining operations are thereby easy to perform. The programming time decreases by up to 60%.
In the technology area of Turning, we have presented the ctx gamma 3000 tc second generation. The ctx tc series, with its focus on the fluid and hydraulics sectors, has now been fully developed. Also with dmg mori components, such as the successful turn and mill spindle, compactmaster®, we are able to systematically realise synergies through our collaboration with premium suppliers.
ultrasonic 20 linear – efficient machining of advanced materials
The ultrasonic 20 linear second generation now makes it easy to machine also complex components made of hard-to-cut metal alloys, as well as composites. A celos® app analyses key process parameters, supporting the efficient use of ultrasonic technology.
Research and Development
additional
Within the technology area of Milling, the dmu 160 p duoblock® completes the successful fourth generation of the duoblock® series. The 5-axis machine features 30 per cent higher precision, performance and efficiency. The dmu 210 p second generation portal machine provides better working space, higher machine rigidity and an innovative cooling concept. The dmu 600 g linear was designed at the xxl Center at deckel maho in Pfronten. With top surface quality and maximum dynamic response, the gantry machine is ideally suited for use in the die and mould making industry. We have added a smaller machine to the dixi series' high-precision machining centres in the form of the dixi 125, based on the duoblock® platform.
In Advanced Technologies, we have launched a high-compact 5-axis machining centre, the ultrasonic 20 linear second generation.
The global economy is expected to grow only with weakened dynamics in the year 2016, according to current forecasts. The IfW forecasts a 2.9% increase of the gross domestic product (gdp) for the current year. Further declining growth dynamics in Asia and persisting exchange rate fluctuations, however, might cause a downturn of the global economy.
Growth impulses continue to be expected primarily from the industrialised countries in 2016. In the usa, economic growth will continue. A further modest growth is expected for Europe this year: economic researchers forecast that the gdp of the Euro countries will rise by 1.8% in 2016. For Germany, a plus of 1.9% is expected.
The global machine tool market is expected to grow only modestly in 2016. The German Machine Tool Builders' Association (vdw) and the British economic research institute Oxford Economics expect in their latest forecast (status: April 2016) a growth of global consumption by only 1.9% to reach € 68.6 billion. As in the previous years, the autumn forecast (2015: + 4.1%) was significantly corrected downward; currently, this year by 2.2 percentage points. Demand in Asia, according to the current forecast, is expected to rise by 2.7% (previously: + 4.4%). For America, a decline in consumption by 2.7% is now forecast (previously: + 2.0%). Demand in Europe is expected to increase by only 2.1% (previously: + 4.1%).
in € billion
Together with our Japanese partner, we will continue to optimise our global sales and service structures and thereby strengthen our international market presence. Our new technology centre in Moscow is in the final construction phase and will be opened on 23 May. In South Korea, the opening of the new technology centre is planned for autumn. We also perceive major potentials of our cooperation in the joint product development and production as well as in purchasing through the expansion of our global supplier partnerships.
On 6 April 2016, dmg mori company limited announced that it had increased its direct and indirect shareholding in dmg mori aktiengesellschaft to 76.03%. Moreover, at a Supervisory Board meeting, it announced its intention to conclude a domination and profit transfer agreement. Against this background, the Executive Board of dmg mori aktiengesellschaft has decided in coordination with the Supervisory Board to postpone the Annual General Meeting convened for 6 May 2016 to a later date. Furthermore on 6 April 2016, Dr. Rüdiger Kapitza stepped down after 20 years from his position as Chairman of the Executive Board of dmg mori aktiengesellschaft and left the Executive Board by mutual agreement with the Supervisory Board. At its meeting on 15 April 2016, the Supervisory Board unanimously appointed Dipl.-Kfm. Christian Thönes as chairman of the Executive Board of dmg mori aktiengesellschaft.
In the notifications of voting rights submitted to us on 6 April 2016, shareholder, Paul Singer / Elliott International Limited, announced that his share of voting rights in dmg mori aktiengesellschaft had fallen below the 3% notification threshold. (According to the notifications of voting rights submitted to us until 31 December 2015, the shareholder previously held 15.16%).
Ad hoc News ag.dmgmori.com
Latest news Future Business Development
In the financial year 2016, we continue to expect a volatile economic development. Influence factors for the cyclical development and thus, also for the investment tendency of companies are further declining growth dynamics in Asia and persisting exchange rate fluctuations between the international currencies.
We confirm our forecast for financial year 2016. We are expecting a slightly better order intake than in the previous year and are planning again sales revenues of around € 2.3 billion. ebt will be significantly below the high level of the record year 2015. We are also expecting a slightly improved positive free cash flow. As a result of dmg mori company limited intending to conclude a domination and profit transfer agreement, we are unable, at present, to make any comments on a dividend payment for financial year 2016.
| 1st quarter | 2016 | 2015 | Changes | |||
|---|---|---|---|---|---|---|
| 01 Jan. – 31 March € million |
% | 01 Jan. – 31 March € million |
% | € million | 2016 against 2015 % |
|
| Sales Revenues | 541.4 | 97.9 | 538.4 | 91.5 | 3.0 | 0.6 |
| Changes in finished goods | ||||||
| and work in progress | 10.2 | 1.8 | 48.6 | 8.3 | –38.4 | 79.0 |
| Own work capitalised | 1.9 | 0.3 | 1.5 | 0.2 | 0.4 | 26.7 |
| Total Work Done | 553.5 | 100.0 | 588.5 | 100.0 | –35.0 | 5.9 |
| Cost of materials | –286.0 | –51.7 | –326.7 | –55.5 | 40.7 | 12.5 |
| Gross Profit | 267.5 | 48.3 | 261.8 | 44.5 | 5.7 | 2.2 |
| Personnel costs | –139.3 | –25.2 | –135.8 | –23.1 | –3.5 | 2.6 |
| Other income and expenses | –85.8 | –15.4 | –83.6 | –14.2 | –2.2 | 2.6 |
| Depreciation | –14.4 | –2.6 | –12.4 | –2.1 | –2.0 | 16.1 |
| Financial Result | –2.2 | –0.4 | –2.1 | –0.4 | –0.1 | 4.8 |
| ebt | 25.8 | 4.7 | 27.9 | 4.7 | –2.1 | |
| Income taxes | –7.7 | –1.4 | –8.4 | –1.4 | 0.7 | |
| Earnings after taxes | 18.1 | 3.3 | 19.5 | 3.3 | –1.4 | |
| Profit share of shareholders of | ||||||
| dmg mori aktiengesellschaft | 16.2 | 3.0 | 17.7 | 3.0 | –1.5 | |
| Profit share attributed to minority interests | 1.9 | 0.3 | 1.8 | 0.3 | 0.1 | |
| Earnings per share pursuant to ias 33 (in euros) | ||||||
| Undiluted | 0.21 | 0.22 | ||||
| Diluted | 0.21 | 0.22 |
interim consolidated forecast financial statements
Consolidated Income Statement Consolidated Statement of other Comprehensive Income
| 2016 01 Jan. – 31 March € million |
2015 01 Jan. – 31 March € million |
|
|---|---|---|
| Earnings after taxes | 18.1 | 19.5 |
| Other comprehensive income | ||
| Actuarial gains / losses | 0.0 | 0.0 |
| Income taxes of items not reclassified to the income statement | 0.0 | 0.0 |
| Sum of items not reclassified to the income statement | 0.0 | 0.0 |
| Differences from currency translation | –0.1 | 26.7 |
| Changes in the fair value of derivative financial instruments | 0.7 | –3.1 |
| Changes in the fair value measurement of available-for-sale assets | 0.0 | 50.1 |
| Hedging of net investments | 0.9 | 0.4 |
| Income taxes on items which are reclassified to the income statement | –0.2 | 0.9 |
| Sum of items which are reclassified to the income statement | 1.3 | 75.0 |
| Other comprehensive income for the period after taxes | 1.3 | 75.0 |
| Total comprehensive income for the period | 19.4 | 94.5 |
| Profit share of shareholders of dmg mori aktiengesellschaft | 17.4 | 90.6 |
| Profit share attributed to minority interests | 2.0 | 3.9 |
p. 27
Selected Explanatory Notes to the Interim Consolidated Financial Statements
| assets | 31 March 2016 € million |
31 Dec. 2015 € million |
31 March 2015 € million |
|---|---|---|---|
| Long-term assets | |||
| Goodwill | 134.5 | 134.3 | 135.4 |
| Other intangible assets | 73.0 | 75.6 | 79.6 |
| Tangible assets | 466.5 | 463.7 | 425.1 |
| Equity accounted investments | 47.3 | 47.3 | 47.0 |
| Other equity investments | 21.8 | 21.8 | 205.0 |
| Trade debtors | 0.4 | 0.5 | 1.1 |
| Other long-term financial assets | 11.2 | 10.8 | 8.3 |
| Other long-term assets | 39.0 | 39.0 | 11.3 |
| Deferred taxes | 53.4 | 53.4 | 55.3 |
| 847.1 | 846.4 | 968.1 | |
| Short-term assets | |||
| Inventories | 548.0 | 522.3 | 585.6 |
| Trade debtors | 228.7 | 192.4 | 235.6 |
| Receivables from at equity accounted companies | 11.3 | 7.1 | 13.5 |
| Receivables from other related parties | 46.3 | 41.3 | 62.5 |
| Receivables from associated companies | 0.2 | 0.2 | 3.0 |
| Other short-term financial assets | 67.7 | 64.6 | 94.5 |
| Other short-term assets | 55.9 | 52.2 | 49.4 |
| Income tax receivables | 5.3 | 5.3 | 0.4 |
| Cash and cash equivalents | 394.3 | 552.1 | 243.6 |
| Long-term assets held for sale | 0.0 | 0.0 | 37.6 |
| 1,357.7 | 1,437.5 | 1,325.7 | |
| 2,204.8 | 2,283.9 | 2,293.8 |
forecast financial statements
interim consolidated additional
information
Consolidated Balance Sheet
| equity and liabilities | 31 March 2016 € million |
31 Dec. 2015 € million |
31 March 2015 € million |
|---|---|---|---|
| Equity | |||
| Subscribed capital | 204.9 | 204.9 | 204.9 |
| Capital reserve | 498.5 | 498.5 | 498.5 |
| Revenue reserves | 524.9 | 507.5 | 518.6 |
| Total equity of shareholders of | |||
| dmg mori aktiengesellschaft | 1,228.3 | 1,210.9 | 1,222.0 |
| Minority interests' share of equity | 149.6 | 146.6 | 138.6 |
| Total equity | 1,377.9 | 1,357.5 | 1,360.6 |
| Long-term debts | |||
| Long-term financial debts | 41.2 | 41.1 | 44.7 |
| Pension provisions | 41.5 | 41.7 | 47.9 |
| Other long-term provisions | 34.0 | 35.7 | 34.3 |
| Other long-term financial liabilities | 2.6 | 4.9 | 1.7 |
| Other long-term liabilities | 3.9 | 4.1 | 3.1 |
| Deferred taxes | 4.3 | 3.9 | 3.3 |
| 127.5 | 131.4 | 135.0 | |
| Short-term debts | |||
| Short-term financial debts | 13.0 | 10.7 | 5.1 |
| Tax provisions | 41.3 | 47.8 | 30.5 |
| Other short-term provisions | 164.5 | 168.7 | 157.7 |
| Payments received on account | 135.1 | 132.9 | 145.9 |
| Trade creditors | 195.1 | 269.1 | 262.0 |
| Liabilities to at equity accounted companies | 1.6 | 1.8 | 0.7 |
| Liabilities to other related parties | 83.0 | 89.8 | 86.0 |
| Liabilities to associated companies | 0.0 | 0.0 | 30.5 |
| Other short-term financial liabilities | 22.4 | 30.3 | 40.7 |
| Other short-term liabilities | 43.4 | 43.9 | 38.4 |
| Liabilities in connection with assets held for sale | 0.0 | 0.0 | 0.7 |
| 699.4 | 795.0 | 798.2 | |
| 2,204.8 | 2,283.9 | 2,293.8 |
| cash flow from operating activities | 2016 | 2015 |
|---|---|---|
| 01 Jan. – | 01 Jan. – | |
| 31 March € million |
31 March € million |
|
| Earnings before taxes (ebt) | 25.8 | 27.9 |
| Income taxes | –7.7 | –8.4 |
| Depreciation | 14.4 | 12.4 |
| Change in deferred taxes | 0.3 | –2.0 |
| Change in long-term provisions | –1.8 | 2.6 |
| Other income and expenses not affecting payments | 0.1 | 0.2 |
| Change in short-term provisions | –9.6 | –8.8 |
| Changes in inventories, trade debtors and other assets | –77.3 | –174.9 |
| Changes in trade creditors and other liabilities | –92.1 | –13.6 |
| –147.9 | –164.6 |
| –10.7 | –33.9 | |
|---|---|---|
| Cash inflows on disposal of the property, plant and equipment | 0.1 | 0.5 |
| Amounts paid out for investments in intangible and tangible assets | –10.8 | –34.4 |
| Cash inflows for borrowings | 1.8 | 1.2 |
|---|---|---|
| 1.8 | 1.2 | |
| Changes affecting payments | –156.8 | –197.3 |
| Effects of exchange rate changes on financial securities | –1.0 | 7.9 |
| Cash and cash equivalents as of 1 January | 552.1 | 433.0 |
| Cash and cash equivalents as of 31 March | 394.3 | 243.6 |
Consolidated Cash Flow Statement Development of Group Equity Group Segmental Reporting
d . 05
| As at 31 March 2016 | 204.9 | 498.5 | 524.9 | 1,228.3 | 149.6 | 1,377.9 |
|---|---|---|---|---|---|---|
| Other changes | 0.0 | 0.0 | 0.0 | 0.0 | 1.0 | 1.0 |
| Consolidation measures / | ||||||
| Total comprehensive income | 0.0 | 0.0 | 17.4 | 17.4 | 2.0 | 19.4 |
| As at 01 Jan. 2016 | 204.9 | 498.5 | 507.5 | 1,210.9 | 146.6 | 1,357.5 |
| Subscribed capital € million |
Capital reserve € million |
Revenue reserves € million |
aktien gesellschaft € million |
share of equity € million |
Total equity € million |
|
| Total equity of shareholders of dmg mori |
Minority interests' |
| Subscribed capital € million |
Capital reserve € million |
Revenue reserves € 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 | 90.6 | 90.6 | 3.9 | 94.5 |
| Consolidation measures / | ||||||
| Other changes | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| As at 31 March 2015 | 204.9 | 498.5 | 518.6 | 1,222.0 | 138.6 | 1,360.6 |
Selected Explanatory Notes to the Interim Consolidated Financial Statements p. 28
d . 06 1st quarter 2016
segmentation by
business segments
| Machine Tools € million |
Industrial Services € million |
Corporate Services € million |
Transition € million |
Group € million |
|
|---|---|---|---|---|---|
| Sales revenues | 297.9 | 243.4 | 0.1 | 0.0 | 541.4 |
| ebit | 14.9 | 21.8 | –8.8 | 0.1 | 28.0 |
| Investments | 5.0 | 5.5 | 0.3 | 0.0 | 10.8 |
| Employees | 3,835 | 3,543 | 113 | 0 | 7,491 |
| Machine Tools € million |
Industrial Services € million |
Corporate Services € million |
Transition € million |
Group € million |
|
|---|---|---|---|---|---|
| Sales revenues | 272.9 | 265.4 | 0.1 | 0.0 | 538.4 |
| ebit | 13.9 | 24.5 | –8.2 | –0.2 | 30.0 |
| Investments | 16.3 | 8.7 | 0.4 | 0.0 | 25.4 |
| Employees | 3,765 | 3,350 | 121 | 0 | 7,236 |
1 application of regulations
The Consolidated Financial Statements of dmg mori aktiengesellschaft as of 31 December 2015 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 31 March 2016 were prepared on the basis of ias 34 Interim Financial Reporting. The group Interim Consolidated Financial Statements as of 31 March 2016 and the Interim Report for the period 1 January to 31 March 2016 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 2015.
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 2015 (see further discussions in the Notes to the Consolidated Financial Statements as of 31 December 2015), 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 2016 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
With no change to the Consolidated Financial Statements 2015, dmg mori Australia Pty. Ltd. is classified as a joint venture and included at equity in the Interim 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.
In accordance with ias 33, earnings per share are determined by dividing the consolidated earnings by the average weighted number of shares as shown below. At the same time, the group earnings after taxes of € 18.1 million are decreased by € 1.9 million by the minority interests' earnings.
d . 07
| Group result excluding the profit share of other shareholders | € k | 16,192 |
|---|---|---|
| Average weighted number of shares (pieces) | 78,817,994 | |
| Earnings per share ac. to ias 33 | € | 0.21 |
There were no diluted earnings per share as at 31 March 2016.
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 2015, the valuation rates of the financial instruments are explained in detail. The accounting as at 31 March 2016 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 31 March 2016 is € 54.2 million, whereas the fair value is € 55.6 million.
Comprehensive income as of 31 March 2016 of € 19.4 million comprised earnings after taxes (€ 18.1 million) and "Other comprehensive income after taxes" (€ 1.3 million). The change in the market values of derivative financial instruments had an increasing effect; the difference amounts from currency conversion reduced the comprehensive income. Seasonally related income and expenses, respectively those distributed unevenly over the year, did not have any material effect. 6 statement of comprehensive income
There have not been any material changes as of 31 March 2016. As presented in the Notes to the Financial Statements as of 31 December 2015, 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 2015, presented in a differentiated way. dmg mori Australia Pty. Ltd. is classified as a joint venture. dmg mori Finance GmbH as well as Magnescale Co. Ltd and its subsidiaries are classified 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. 9 statement of relations with related parties
As at 31 March 2016, dmg mori company limited held a 60.67% stake of the share capital and the voting rights of dmg mori aktiengesellschaft and is the ultimate parent company of the dmg mori group. More details on the takeover of shares can be found in the Notes to the Financial Statements as of 31 December 2015.
Selected Explanatory Notes to the Interim Consolidated Financial Statements
10 events occuring after the balance sheet date
On 6 April 2016, dmg mori company limited announced that it had increased its direct and indirect shareholding in dmg mori aktiengesellschaft to 76.03%. Moreover, at a Supervisory Board meeting, it announced its intention to conclude a domination and profit transfer agreement. Dr. Rüdiger Kapitza stepped down from his position as Chairman of the Executive Board of dmg mori aktiengesellschaft on 6 April 2016 and left the Executive Board. At its meeting on 15 April 2016, the Supervisory Board unanimously appointed Dipl.-Kfm. Christian Thönes as Chairman of the Executive Board. In addition, no other significant events have occurred after the reporting date of interim financial statements.
Bielefeld, 26 April 2016 dmg mori aktiengesellschaft The Executive Board
Dipl.-Kfm. Christian Thönes Dipl.-Kfm. Björn Biermann
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 |
| b . 01 | dmg mori group structure | 4 |
|---|---|---|
| b . 02 | Sales revenues dmg mori group | 4 |
| b . 03 | Order intake dmg mori group | 5 |
| b . 04 | Order intake dmg mori group by regions | 6 |
| b . 05 | Order backlog dmg mori group | 6 |
| b . 06 | Net worth | 7 |
| b . 07 | Cash flow | 9 |
| b . 08 | Contribution of each segment / division to investments in fixed assets and intangible assets | 9 |
| b . 09 | Segment key figures of dmg mori group | 10 |
| b . 10 | Key figures "Machine Tools" segment | 11 |
| b . 11 | Distribution of sales revenues by segments within the dmg mori group | 12 |
| b . 12 | Key figures "Industrial Services" segment | 13 |
| b . 13 | Key figures "Corporate Services" segment | 14 |
| b . 14 | The dmg mori aktiengesellschaft share in comparison | |
| with the mdax® January 2012 to March 2016 | 15 |
| c . 01 | Machine tools consumption worldwide | 18 |
|---|---|---|
| dmg mori aktiengesellschaft as of 31 March 2016 | ||
|---|---|---|
| d . 01 | Consolidated Income Statement | 20 |
| d . 02 | Consolidated Statement of other Comprehensive Income | 21 |
| d . 03 | Consolidated Balance Sheet | 22 |
| d . 04 | Consolidated Cash Flow Statement | 24 |
| d . 05 | Development of Group Equity | 25 |
| d . 06 | Group Segmental Reporting | 25 |
| d . 07 | Earnings per share | 27 |
31
List of Tables and Charts Financial Calendar
additional information
Financial Calendar
ag.dmgmori.com
| The new date will be announced in due time |
114th Annual General Meeting |
|---|---|
| 28 july 2016 | Second Quarterly Report 2016 (1 April to 30 June) |
| 27 oct. 2016 | Third Quarterly Report 2016 (1 July to 30 September) |
| 05 may 2017 | 115th Annual General Meeting |
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 |
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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 in the capital markets and a deterioration in the conditions for the credit business and in particular uncertainties that arise from 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 forwardlooking statements to reflect any change in events or developments occurring after the reporting period. Forwardlooking 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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