DMG Mori : Summary of Consolidated Financial Statements for the first quarter of Fiscal Year 2021 ended March 31, 2021 (IFRS basis)

△1.13

△1.13

10.36

10.38

First quarter ended March 31, 2021 First quarter ended March 31, 2020

(Note) Basic earnings (△loss) per share is based on the earning amount which excludes earnings attributed to owners of hybrid capital.

Yen

Yen

Date: May 12, 2021

Summary of Consolidated Financial Statements for the first quarter of Fiscal Year 2021 ended March 31, 2021 (IFRS basis)

(All financial information has been prepared based on the original Japanese-language document, Summary of Consolidated Financial

Statements for the first quarter announced on May 12, 2021)

Listed company name:	DMG MORI CO., LTD.
Stock exchange listing:	First Section of Tokyo Stock Exchange
Code Number:	6141	URLhttps://www.dmgmori.co.jp
Company Representative:	Masahiko Mori, President
Contact Person	Hirotake Kobayashi, Vice President, Accounting / Finance HQ, Executive Officer
Phone:	[phone]

Filing date of quarterly financial statements: May 17, 2021

Estimated starting date of dividend payment: -

Preparation of supplementary explanatory materials: Yes

Holding of quarterly earnings release conference: Yes

1． Consolidated business results of the first quarter ended March 31, 2021 (January 1, 2021 to March 31, 2021)

										(Note: All amounts less than one million are disregarded)
(1) Consolidated business results						(% of change from same period in the previous year)
							Earnings before			Income attributable to	Total comprehensive
			Sales revenues	Operating income			Quarterly Profit
							income taxes			owners of the parent	income
			million yen	%	million yen	%	million yen	%	million yen	%	million yen	%	million yen		%
First	quarter	ended		△7.0
			81,122	3,986	21.8	3,134	148.5	1,819	1,972.9	1,812	1,306.4	5,392		-
March 31, 2021
First	quarter	ended		△27.6		△68.6		△85.7		△98.6		△97.9	△9,840
			87,255	3,272	1,261	87	128		-
March 31, 2020

Basic earnings (△loss)

per share

Diluted earnings (△loss)

per share

1. Consolidated financial position

				Equity attributable to	Ratio of equity attributable to	Equity per share attributable to owners of
		Total assets	Total equity
				owners of the parent	owners of the parent	the parent
		million yen	million yen	million yen	%	yen
March 31, 2021		543,897	193,809	189,364	34.8	1,521.18
December 31, 2020		526,526	189,895	185,420	35.2	1,493.86
(Note) Ratio of equity attributable to owners of the parent and equity per share attributable to owners of the parent are based on the equity amount which includes
amounts of hybrid capital.

2．Dividends

			Dividends per share
Record Date	1Q	2Q	3Q	Year-end	Annual
	yen	yen	yen	yen	yen
December 31, 2020	-	10.00	-	10.00	20.00
December 31, 2021	-
December 31, 2021 (Forecast)		10.00	-	10.00	20.00

(Note) Revision of dividend forecast in the current quarter: No

3．Consolidated financial forecast for Fiscal Year 2021 (January 1, 2021 to December 31, 2021)

(% of change from same period in the previous year)

							Income attributable to
	Sales revenues		Operating income					Basic earnings per share
							owners of the parent
	million yen		%	million yen		%	million yen		%	yen
Full Year 2021	345,000		5.1	14,000		31.2	6,000		243.7	31.15

(Note)

・Revision of consolidated financial forecast in the current quarter: Yes

・Supported by the recovery of demand in the global market including China, we made an upward revision of Consolidated financial forecast for fiscal year 2021 from the previous announcement released on February 12, 2021. For details, please refer to the "1. Qualitative Information Regarding Quarterly Settlement of Accounts (3) Explanation of forecasts and other projections" on page 3.

・Exchange rate used for consolidated financial forecast for the fiscal year 2021: JPY 105.0/USD, 125.0/EUR

Note

1. Changes in significant subsidiaries during the first quarter ended March 31, 2021: No
2. Changes in accounting policies applied and changes in accounting estimates
3. 1. Changes in accounting policies required by IFRS: No
   2. Changes in accounting policies other than the above: No
   3. Changes in accounting estimates: No
4. Number of shares outstanding (Common shares)
5. 1. Number of shares outstanding at the end of the period (including treasury shares)

March 31, 2021:	125,953,683	December 31, 2020:	125,953,683
2. Number of treasury shares at the end of the period
March 31, 2021:	1,536,753	December 31, 2020:	1,943,804

3. Average number of outstanding shares during the period (cumulative from the beginning of the period)

January - March 2021: 124,196,144

January - March 2020: 122,771,201

(Note) The Company implemented trust-type employee stock ownership incentive plan in April 2018. Therefore, the shares of the company held by DMG MORI Employee Shareholders Association Exclusive Trust are included in the number of treasury shares at the end of period (967,100 shares as of December 31, 2020, and 783,100 shares as of March 31, 2021). In addition, the Company's shares held by the trust account are included in the treasury shares to be deducted in the calculation of the average number of shares during the period (1,771,950 shares from January 1 to March 31, 2020, and 894,850 shares from January 1 to March 31, 2021).

• Information regarding implementation of quarterly review procedures

These quarterly financial results are not subject to quarterly review procedures.

• Proper use of the financial forecasts and other notes

(Precautions regarding future descriptions)

The above forecast is based on information available as of the release of this report and assumptions of several uncertain factors which may affect the company's results. Actual results might be different from the above estimates due to subsequent changes in the circumstances. Regarding Fiscal Year 2021 (Forecast), please see "1. Qualitative Information Regarding Quarterly Settlement of Accounts (3) Explanation of forecasts and other projections". on page 3.

(How to obtain supplementary explanatory materials for quarterly financial results)

The supplementary explanatory material for the quarterly financial results is scheduled to be posted on the Company's website on May 12, 2021 (Wednesday).

(Attached Documents) Index

1. Qualitative Information Regarding Quarterly Settlement of Accounts	......................................................................................................................2
(1)	Explanation of operating results .......................................................................................................................................................................	2
(2)	Explanation of financial position .......................................................................................................................................................................	3
(3)	Explanation of forecasts and other projections .................................................................................................................................................	3
2．Quarterly Consolidated Financial Statements........................................................................................................................................................	4
(1)	Quarterly consolidated statements of financial position.....................................................................................................................................	4
(2)	Quarterly consolidated statements of income ...................................................................................................................................................	6
(3)	Quarterly consolidated statements of comprehensive income ..........................................................................................................................	7
(4)	Quarterly consolidated statements of changes in equity ...................................................................................................................................	8
(5)	Quarterly consolidated statements of cash flows ............................................................................................................................................	10
(6)	Notes on going concern assumption...............................................................................................................................................................	12
(7)	Notes on quarterly consolidated financial statements .....................................................................................................................................	12

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1. Qualitative Information Regarding Quarterly Settlement of Accounts

(1) Explanation of operating results

For the first quarter of the fiscal year 2021 (from January 1 to March 31), the sales revenue was JPY 81,122 million (EUR 635,262 thousand), the operating income was JPY 3,986 million (EUR 31,214 thousand), the earnings before income taxes were JPY 3,134 million (EUR 24,542 thousand), and the income attributable to owners of the parent was JPY 1,812 million (EUR 14,193 thousand). (Euro amount is converted from yen at 127.7 yen, the average exchange rate between January 1 and March 31, 2021).

The consolidated order intake for the first quarter of 2021 was JPY 101.4 billion and increased by 29.5% year-on-year. It was a significant improvement from the original plan of JPY 85.0 billion at the beginning of 2021. As a result, the machine order backlog at the end of the first quarter was JPY 124.0 billion, up by JPY 28.0 billion from the end of December 2020. The average order price per unit temporarily declined during the second half of 2020, but is currently rising again because of the surging demand for 5-axis machines and large-sized automation systems, as well as our recent promotion of digitization and other additional value prepositions. The order intake in after-sales services and spare parts rose by 6% year-on-year, suggesting the recovery in customers' production activities.

As for the machine order intake by region, we saw a major recovery in China (3.4 times higher than the same period of 2020) and Europe (+48%), as well as Japan (+14%), Asia (+14% excluding China), and Americas (+9%). The global demand for machine tools hit the bottom in the second quarter of 2020, and holds a steady recovery pace across the world. Concerning the order intake by industry, the semiconductor manufacturing equipment and die & mold industry, as well as SMEs, are showing a steady growth, while the automotive is also gradually recovering. On the other hand, the commercial airplane industry is continuously weak in demand.

Customers are increasingly interested in investing into process integration, automation, and digitization, in pursuit of mid-to-long-term growth and higher profitability. The number of inquiries received at CIMT2021, the first real exhibition held in China in two years, increased 1.5 times compared to the previous event held in 2019, indicating a steady growth in customers' appetite for capital investment. We will leverage our strengths in our direct sales and after-sales service network to further explore the potential demand.

As mentioned in DMG MORI's Mission Statement, we aim at improving our customers' productivity through the best machining automation based on hardware such as machine tools, unique products, in-house-made components, peripheral equipment as well as software, and by integrating them into processing systems at customers' facilities, proposing machining processes for higher productivity, and offering maintenance and financing.

DMG MORI is constantly enhancing the features of my DMG MORI, its online portal targeted at customers for efficient management of all information regarding their own DMG MORI machines. With "Service Request", we recently launched a new function of my DMG MORI, now allowing our customers to request service and order spare parts online instead of by phone calls. This also benefits our customers' productivity, as the utilization of digital data such as image and video material alongside machining programs makes for more precise requests and therefore better optimized service actions. Continuously providing new functions will further contribute to higher efficiency of our customers in the future.

In China, the demand for large machine tools paired with transfer and automation systems is constantly growing. In order to increase our local production capacities, DMG MORI will build a new factory on its production grounds at Tianjin, China (the original factory established in October 2013), and another factory in Pinghu near Shanghai. These new facilities will manufacture machine tools, automation systems, and core components. By expanding our production capacities, DMG MORI will be able to provide Chinese customers with machine tools that fit their needs in short delivery times. Optimized delivery times, effective transportation methods and fast services in China and other regions will contribute to the improved productivity of our customers.

DMG MORI believes that the core of its daily business, that is improving the productivity of our customers, is by itself a contribution to society. Machine tools create machines, parts, as well as the machine tools themselves. As they are mother machines, higher accuracy of machine tools correspondingly benefits all industries. Likewise, reducing the energy consumption of machine tools positively affects the carbon footprint of other industries, too. By pursuing higher accuracy of machine tools and raising their energy efficiency, we clearly see the potential of solving various social issues, such as the reduction of CO₂ emissions and the realization of a recycling-oriented society. We will continue to make unceasing efforts in this regard.

Additionally, DMG MORI is contributing towards a decarbonized and resource-recycling society in its production processes. We offset the remaining amount of CO₂ from our business activities by investing into internationally recognized sustainable climate protection projects, and by 2021, we have achieved carbon neutrality in the entire processes from parts procurement to product shipment for all products manufactured globally. Our CO₂ emission calculation method and the offsetting process have been audited and certified by a third-party organization. In addition to providing

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