1/25 IR Conference2017/5/10
Agenda
1)Financial summary of 1st quarter
2)Business environment
3)Topics from DMG MORI
2/25 IR Conference2017/5/10
Key messages
�Strong order intake in Q1(YoY +8.9% in JPY:+14.4% in EUR basis)
� JPY 4bn Operating profit in the 1st quarter (YoY +78%)
�Robustness in Europe, high level in the US, recovery in China, bottoming out in Asia
�Continued profit of US subsidiary
�Pfronten Open House (Feb) and CIMT in Beijing (Apr)
�Actualization of clean-up effect of non-core business
�Responding to social demands as an industry leading company
3/25 IR Conference2017/5/10
2017 Q1 income statement summary
2016 2017 Changes FY2017
(JPY bn) Jan – Mar Jan – Mar (%) Forecast
Sales revenue 95.4 97.2 +1.9% 380
Operating profit 2.3 4.0 +77.6% 22
Operating profit margin (%) 2.4% 4.1% 5.8%
Net financial cost -0.6 -1.1 -4(economic compensation associated with DA) - -0.5 (-2)
Net profit for the quarter 1.6 1.6 +0.3% 12
Attributable to owners of the parent company
0.8 1.6 11
D&A 4.3 4.4 17Capex 2.9 1.6 10
(Forex) USD/JPY 115.5 113.7 110.0 EUR/JPY 127.2 121.1 120.0
4/25 IR Conference2017/5/10
2340
+27
+12
+3 -7
-9
-9
CY2016.Q1 CY2017.Q1
2016.1Q 2017.1QUSD/JPY 115.5 113.7EUR/JPY 127.2 121.1
CY2017.Q1 Operating profit bridge-vs CY2016.Q1
(JPY 100m)
thereofUS subsidiary
+22
volume
Cost savings(synergies) ForexClean-up of
non-core biz
R&D etc.(Incl. acq. of Realizer GmbH)
Cost increasein US
Net improvement in US+13
+42 -25
US headcountMar. 2016 692Mar. 2017 823
5/25 IR Conference2017/5/10
40 42
66 64
66 65
137 134
122 121
51 53
76 71
50 50
51 52
93 91
100 95
207 213
56 49
Financial position
Assets Liabilities & Equity
Short - termFinancial assets
Inventories
Receivables
Fixed assets
Goodwill
Intangibles
Payables
Debt
Other liabilities
Obligation of AG share purchase
Shareholders equity
Hybrid equityOther assets
Dec 2016 Dec 2016Mar 2017 Mar 2017
Net Debt
Dec 2016
JPY 130.8bn
Mar 2017
JPY 142.2bn
Dec 2017
JPY 115bn
JPY 558bn JPY 558bnJPY 551bn JPY 551bn
6/25 IR Conference2017/5/10
(JPY bn)2016 2017
Q1 Q2 Q3 Q4 CY Q1
Cash flows from operation -11.9 -1.4 -3.2 34.6 18.2 -7.8
Profit before taxes 1.6 0.7 -1.6 -1.9 -1.1 2.9
Depreciation and amortization 4.3 4.1 3.9 5.3 17.7 4.4
Changes in working capital -10.4 -8.3 -3.4 18.0 -4.1 -10.2
Others -7.4 2.1 -2.1 13.2 5.7 -4.9
Cash flows from investing activities
-2.9 -3.8 -2.8 -0.5 -10.0 -2.1
(Thereof, acquisition of fixed assets) -2.9 -4.2 -2.5 -5.6 -15.2 -1.6
Free cash flows -14.8 -5.2 -6.0 34.1 8.1 -9.9
Cash flows
7/25 IR Conference2017/5/10
Agenda
1)Financial summary of 1st quarter
2)Business environment
3)Topics from DMG MORI
8/25 IR Conference2017/5/10
Worldwide machine tool demand forecast(YoY growth for 2017; VDW/ Oxford Economics)
Europe: + 4.0%Europe: + 4.0% USA: +0.5%USA: +0.5%Asia: + 3.5%Asia: + 3.5%
+3.7%
+3.9%
+4.9%
+2.2%
+0.9% +0.5%
+1.0%
+6.8%+2.4%(?)
+2.9%
World: + 3.2%World: + 3.2%
(+1.9%)
Upper side : forecast as at Apr 2017Lower side ::::forecast as at Oct 2016
(+2.1%)Source :VDW/ Oxford Economics
Published on Apr 12, 2017, without exchange rate effects
(+1.4%)
(+3.3%)
(-5.9%)
(+2.9%)
(+6.9%)
(+0.0%)(+12.5%)
(+0.0%)
(+7.7%)
9/25 IR Conference2017/5/10
831 775
680 720
763
928 920
844
1,022 1,055
920
1,063
972
1,081
931 892
949 904 880 898
1,034
799 753
691 684 625
719 702
617
726 753
668
743 725
806
684 671
746 741 770 762
854
0
200
400
600
800
1,000
1,200
0
200
400
600
800
1,000
1,200
Jan-MarCY12
Apr-Jun Jul-Sep Oct-Dec Jan-MarCY13
Apr-Jun Jul-Sep Oct-Dec Jan-MarCY14
Apr-Jun Jul-Sep Oct-Dec Jan-MarCY15
Apr-Jun Jul-Sep Oct-Dec Jan-MarCY16
Apr-Jun Jul-Sep Oct-Dec Jan-MarCY17
79.3 80.2 78.6 81.2 92.4 98.8 99.0 100.5 102.8 102.2 103.9 114.5 119.1 121.4 122.2 121.5 115.5 108.2 102.4 109.3 113.7
104.0 102.9 98.4 105.3 122.0 129.0 131.1 136.7 140.8 140.1 137.8 143.1 134.2 134.2 136.0 133.0 127.2 122.0 114.3 117.8 121.1
(EUR mm)(JPY 100mm)
DMG MORI quarterly consolidated order intake
Exchange(JPY)
USD
EUR
Year-on-YearJPY basis +8.9%
EUR basis +14.4%Left-axis■: JPY basis Right-axis■: EUR basis
10/25 IR Conference2017/5/10
Japan
Europe
N. America
S. America
China
Asia(ex. China)
CY2016 CY2017 CY2017(As at Feb 2017) (As at May 2017)
Overview (by region & by industry)
Down Flat UP
Region Industry
Down Flat UP Down Flat UP
CY2016 CY2017 CY2017(As at Feb 2017) (As at May 2017)
Down Flat UP Down Flat UP Down Flat UP
Automobile
Aerospace
Machinery
Medical
Die & Mold
Energry
Construction
Electronics
11/25 IR Conference2017/5/10
1,141
1,273 1,211
1,053
1,248
1,500 1,498
1,704 1,598
1,513
1,396 1,296 1,316
1,496
1,690
1,386 1,391 1,326
1,249
836 871
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1Q
CY2012 CY2013 CY2014 CY2015 CY2016 CY2017
Consolidated stock and production
■:Production ■:Stock(Units)
12/25 IR Conference2017/5/10
Left axis■: JPY basis Right axis■: EUR basis*machine body only
Consolidated order intake - average price
(MM JPY) (T EUR)
USD/JPY
EUR/JPY
CY
34% 36% 38%
CY2016CY2014CY2012 CY2017.1Q
43%
23% 24% 26%19%
27% 29% 25%27%
16% 12% 11%11%
32% 31% 33% 38%
2% 5% 5% 5%
CMX V seriesVertical Machining CenterTurning Center
Milturn Center
5-axis Machine
AdvancedTechnologies
HorizontalMachining Center
13/25 IR Conference2017/5/10
20%
36%8%
8%
3%
14%
12%
Order trend by region(Consolidated machine order intake)
CY2017.1QCY2016
アジア
USA
Japan
China
Germany
EMEA*RussiaAsia
Americas
*Europe, the Middle East and Africa
54%
13%
19%
14%
20%
34%6%
7%
2%
16%
14%
USA
Japan
China
Germany
EMEA*RussiaAsia
Americas
Approx. 50%
* Value basis* Machine body only
14/25 IR Conference2017/5/10
36%
27%
12%
2%
9%
7%
1%
1%
2%
3%
24%
18%
17%
11%
11%
8%
1%5%
1%
4%
26%
19%
19%
8%
8%
8%
2%5%
1%
5%
Order composition (by industry)*Small and medium-sized enterprises
* Value basis* Machine body only
CY2017.1QCY2016
Japan
Global
Energy/Power generation
Machinery
Automotive/Motor Cycle
SMEs*
Aerospace
Die & Mold
Electricity/Precision parts/Semi conductor
Medical
Others
Construction machinery
42%
26%
12%
3%6%
5%
3%
1%
1%
1%
Energy/Power generation
Machinery
Automotive/Motor Cycle
SMEs*
AerospaceDie & Mold
Electricity/Precision parts/Semi conductor Medical
Others
Constructionmachinery
MedicalEnergy/
Power generation
Automotive/Motor Cycle
Aerospace
Others
Die & Mold
Constructionmachinery
SMEs*
Electricity/Precision parts/Semi conductor
Machinery
MedicalEnergy/
Power generation
Automotive/Motor Cycle
Aerospace
Others
Die & Mold
Constructionmachinery
SMEs*
Electricity/Precision parts/Semi conductor
Machinery
15/25 IR Conference2017/5/10
1%23%
12%
24%6%
34%
5%
33%
11%25%
1%
9%
16% 5%
38%
11%
27%
4%
15%
Order composition (by product type)
5-axisMachine
Millturn Center HorizontalMachining Center
Advanced TechnologiesVertical Machining Center
Turning Center
5-axisMachine
Millturn CenterHorizontal
Machining Center
Vertical Machining CenterTurning Center
Advanced Technologies
CMX V series
CMX V series(From Sep 2016)
ECOLINE
CY2017.1QCY2016
Japan
Global
1%14%
11%
29%2%7%
36%
5-axis Machine
Millturn Center
HorizontalMachining Center
Advanced Technologies
Vertical Machining CenterTurning Center
CMX V series (From Sep 2016)
ECOLINE
5-axisMachine
Millturn Center
HorizontalMachining Center
Advanced Technologies
Vertical Machining CenterTurning Center
CMX V series
* Value basis* Machine body only
16/25 IR Conference2017/5/10
Agenda
1)Financial summary of 1st quarter
2)Business environment
3)Topics from DMG MORI
17/25 IR Conference2017/5/10
�Experience the Smart Factory of DMG MORI
Major exhibitions in 2017
Apr 17-22CIMT, Beijig(China)
Feb 14-18DMG MORIOpen House, Pfronten(Germany)
June 20-24DMG MORIOpen House, Iga(Japan)
Sep 18-23EMO Hanover(Germany)
May 15-18DMG MORIOpen House, Chicago(USA)
18/25 IR Conference2017/5/10
Launch of DMG MORI Kyoei-kai(dealers association) April 2017 ~~~~
Northern Japan
21
Kita-Kanto
29
Tokai
20
Shuto-ken
29Western Japan
38
Chubu
23
Kansai,Hokuriku
27
DMG MORI Kyoei-kai locations
Total 187 companies
Dealers association Major customers
Ayama Pfronten (49) Mid-sized to multi-natinal companies
DMG MORI Kyoei-kai Local companies
�Establish a dealer network covering all over Japan
Area Sales Manger
Approx. 80 personnel
Customersize
Area
AyamaPfromten-kai
DMG MORIKyoei-kai
wide
large
19/25 IR Conference2017/5/10
Open House Pfronten -the largest private show in European market- Feb. 2017
�Over 80 machines exhibited from wide-variety of typ esOrder intake amount YoY +8%
World premiers
Smart Factory
DMU 50 3rd GenerationDMF 600 linear LASERTEC 30 SLM
In-house production spindle SpeedMASTER as standard
CELOS Automation Technology Cycles
Ideal for machining of long workpiecesSupports from 3 axis milling machining to
simultaneous 5 axis machining
Large type machineAdditive Manufacturing
Powder bed system
20/25 IR Conference2017/5/10
20%
17%63%
41%
24%
35%
CIMT 2017 in Beijing, April 2017
�Products from our Chinese factory and our latest automation systems are highly appreciated
Order Trends
Automation system proposal
Opening ceremony
China-Tianjin
Japan-Ige、Nara
Germany-SeebachPfrontenBielefeld etc.
Unit basis
<By plant>
<Customer type>
Chinese subsidiaries of Multinational companies
Chinese localPrivate companies(SMEs*)
Chinese large companies(Incl. state-owned companies)
Tianjin assembled NHC4000 +Round pallet pool
Joined the ribbon cuttingDMG MORI set up a booth in the same area as European companies
Unit bases
*Small and medium-sized enterprises
21/25 IR Conference2017/5/10
5-axis machine DMU 50 3 rd Generation
Spindle
� DMU50 further evolved with experience gained from m ore than 10,000 installed machines
TOOL HANDLING
PALLET HANDLING
Adoptable to Automation DMG MORI components
as standard
toolSTAR 、、、、Scale
22/25 IR Conference2017/5/10
New product line-up in additive manufacturing
� Powder bed technology is added to our AM portfolio
LASERTEC 30 SLM
Powder bedPowder nozzle
LASERTEC 65 3D
Turbine housing Drill head Dental Implants Impeller
Melting by powder nozzle Method Melting in laminated powder
Prototyping, mass production, repair, coating
ApplicationsPrototype and mass production
High speed AdvantagesHigh accuracy (machined surface),
aluminum processing
23/25 IR Conference2017/5/10
0
100
200
300
400
500
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2015 2016 2017
Order intake status of CMX V series
(Units) ■Dura Vertical ■ ECOLINE(ecoMillV) ■CMX V series
Quarterly order intake (units)
� More options are now available, Quick set-up of peripherals with DMQP
Quick set-up
JPY10m
+
CMX 600 Peripherals
JPY 18m
Automation
Jigs
measuring
Robot
rotarytable
touchprobe
Order
<e.g.>
24/25 IR Conference2017/5/10
� Total of brand name, sense of achievements, working environment
Ranked -in among top companies in popularity survey of new graduates
Apr 26, 2017Nikkei newspaperSpecial article
Scope of survey : about 42,000 new graduates from university/post-graduates in Japan
Ranking by sector
Machinery/Plant 2nd
Ranking by region
Tokai 8th
Other-backgornnds 137th
Science-background 084thApr 29, 2017Weekly magazine ‘Diamond’
Scope of survey :5,771 new graduates from university/post-graduates in Japan 111th
Nikkei newspaper
Diamond (weekly magazine)male female
TOYOTA
Ichijo Komuten
Denso
Aisin Seiki
Pasco Shikishima
AISIN AW
Resorttrust
DMG MORI
CHUBU Electric Power
Oliver
Mitsubishi Heavy Industries
DMG MORI
IHI
Kubota
Daikin IndustriesNSK
JFE Engineering
Komatsu
YANMARChiyoda
HOSHIZAKI
Ranking by sectorMachinery/Plant Ranking
by regionTokai
25/25 IR Conference2017/5/10
Disclaimer
This material contains targets, plans, etc. concerning the future of DMG MORI CO., LTD. and the DMG MORI Group. All predictions concerning the future are judgments and assumptions based on information available to DMG MORI at the time of writing. There is a possibility that the actual future results may differ significantly from these forecasts, due to changes in management policy or changes in external factors.
There are many factors which contain elements of uncertainty or the possibility of fluctuation including, but not limited to, the following:
� Fluctuations in exchange rates� Changes to the laws, regulations and government policies in the markets
where DMG MORI CO., LTD. conducts its business� DMG MORI CO., LTD.’s ability to develop and sell new products in a timely fashion� Instability of governments in the markets where DMG MORI CO., LTD. conducts its
business� Operational changes by the competent authorities or regulations related to anti-trust, etc.