External studies and media regularly honor the modern corporate culture – such as the business magazines Forbes, Capital or the F.A.Z. Institute. DMG MORI is globally regarded as an attractive employer.
DMG MORI is awarded the Platinum Medal in the Sustainability Rating by the internationally renowned assessment institute EcoVadis and is thus among the “TOP 1%” of over 35,000 companies evaluated worldwide.
Following the basic understanding of holistic sustainability and digitization, DMG MORI is presenting its first completely digital Annual and Sustainability Report 2021 at the Annual Press Conference.
The Annual General Meeting is again held virtually due to corona. 2021 was challenging but successful. The strategic focus fits better than ever. A big thanks to all shareholders and employees of DMG MORI.
For the first time for two weeks, live on site or digitally: a total of over 5,000 international visitors inform themselves about the latest technological developments from DMG MORI at the traditional Open House in Pfronten.
DMG MORI benefits from the consistent implementation of the strategic fit of automation, digitization and sustainability. New record values for order intake and free cash flow, among others, reflect the successful course of business.
DMG MORI starts operation in the new, state-of-the-art Logistic Center in Pfronten. Four previously external warehouses are now bundled centrally. The smart supply chain is shorter, more transparent and more dynamic thanks to maximum automation and complete digitization.
DMG MORI presents 22 machines at AMB 2022 – more than half of them equipped with innovative automation (workpiece or pallet handling). Automation, digitization and sustainable technology integration are the future topics of the machine tool industry.
The Executive Board once again informs all employees worldwide live about the strategic fit of DMG MORI. The focus is on the questions asked in real time. A continuous exchange and appreciative interaction are decisive success factors at DMG MORI.
At the 9th “Global Development Summit” in Tokyo, more than 300 international TOP R&D specialists and external experts develop future ideas for networked, sustainable solutions from machine, automation and digitization.
DMG MORI welcomes over 1,000 guests at the 2nd German-Japanese Classical Concert. In the Rudolf-Oetker-Hall in Bielefeld, the “Japanese National Orchestra” from Tokyo with star pianist Kyohei Sorita, the “Bielefeld Philharmonic Orchestra” as well as Loney Dear from Stockholm fascinate the audience.
In times of high volatility and uncertainty, DMG MORI closes the financial year with success. The forecasts increased over the course of the year are achieved and in some cases exceeded. In addition, employees benefit from a group-wide inflation compensation bonus.
2022 – a year of TOP performance for DMG MORI and at the same time a year of major global challenges: worldwide supply and material shortages, high raw material, energy and transport costs, rising interest and inflation rates, but also the ongoing corona pandemic and above all the war in Ukraine. Peace and freedom always take precedence over business interests, because they are the basic prerequisite for security.
Even before the EU sanctions were enacted on 26 February 2022, DMG MORI therefore immediately and comprehensively stopped all activities on the Russian market. All sales, service and training activities as well as production in Ulyanovsk were suspended. This also includes all deliveries of machines, spare parts, components and services to Russia.
DMG MORI nevertheless achieved a very successful financial year 2022 under more difficult market and general conditions. Thanks to the consistent implementation of our strategic focus on automation, digitization and sustainability, we were able to reach and in some cases exceed the forecasts that were increased during the course of the year.
Order intake in our core business with machine tools and services rose by +15 % to an all-time high of € 2,904.2 million, to which both the new machines business and the service business contributed positively. New machine business performed well at +15 % and reflects increased demand for our integrated and sustainable automation and digitization solutions. Service business also grew by +15 % and reached a new record level. Sales revenues increased by +15 % to € 2,365.7 million – despite the continued difficult materials and logistics situation. The sustainable optimization of our cost structure and stringent implementation of our efficiency improvement measures paid off: EBIT rose by +75 % to € 216.5 million. The EBIT margin improved to 9.2 % and thus also marked an all-time high. The financial situation also developed encouragingly: free cash flow amounted to € 171.7 million.
In short: our strategic fit and focus on our customers’ shopfloors are a perfect match. The combination of machines, technologies, users, automation and digitization enables a high degree of process integration for resource-saving and efficient production. Our innovative solutions make a decisive contribution to the benefit of humans and the environment. And global challenges make resilience and sustainability mandatory in all areas!
Following our motto “dynamic . Excellence”, we have dynamically advanced our five strategic future fields together with DMG MORI COMPANY LIMITED already since 2017: automation, digitization, sustainability, additive manufacturing and DMG MORI Qualified Products (DMQP). At the same time, we optimize our expertise in quality, service and technology solutions as well as our processes for excellence – in the “Global One Company” with over 12,000 highly qualified employees.
Automation is the key to greater efficiency, higher productivity, even faster amortization – and thus to greater competitiveness and sustainability. In addition to our broad machine portfolio with 157 machines, DMG MORI is also a full liner in automation. Our innovative and comprehensive automation portfolio with 57 products in 13 product lines includes machine-specific, universal and scalable solutions up to the DMG MORI CELL CONTROLLER LPS 4 for workpiece, pallet and tool management.
Digitization enables continuous collection, evaluation and analysis of data directly from the process and thus accelerates economical and sustainable production. The basic prerequisite for this is connectivity. DMG MORI Connectivity is the solution for connectivity on the entire shopfloor – including third-party machines. In compliance with the highest IT security and testing standards, we create secure, standardized interfaces for easy digitization of new and existing DMG MORI machines as well as third-party machines.
my DMG MORI is our online portal and digital face to the customer. Numerous service processes have been digitized. With over 140,000 networked machines, more than 75 % of our customers already use this digital access to our service experts and benefit from up to 70 % faster response times – thanks to direct contact, high transparency via Track & Trace and central access to all information.
The app-based operating and control interface CELOS bundles our digital products in one interface and enables access to all production-related information. CELOS X is a platform-based end-to-end shop floor solution for the connected manufacturing of the future. With CELOS Xperience, local machine and shopfloor tasks are organized in continuous app-based workflows. CELOS Xchange provides a trusted data hub to securely store, analyze and exchange manufacturing data in global production chains. CELOS X will be presented at EMO Hanover 2023.
A highly innovative and completely digital business model is PAYZR – PAY with Zero Risk – for Equipment-as-a-Service and Software-as-a-Service. Subscription & All-In instead of investment and purchase. Through subscription, our customers benefit from fast innovation cycles without risk – with maximum planning security, cost and price transparency as well as full flexibility. In addition, digital offers from ISTOS and TULIP round off the digitization along the entire value chain of our customers.
Sustainability and technology leadership form a symbiosis at DMG MORI, which we actively live. DMG MORI is globally one of the most sustainable industrial companies. In 2022, we received the Platinum Medal in the Sustainability Rating from the internationally renowned assessment institute EcoVadis, placing us among the “TOP 1 %” of over 35,000 evaluated companies worldwide.
With our high-precision, sustainable machine tools and holistic technologies, we are making a decisive contribution to a greener future. Our manufacturing solutions are produced in a resource-saving manner, are of high quality, durable and recyclable and maximally efficient. The strong trend towards high process integration, automation and digitization solutions benefits sustainability.
Under DMG MORI GREEN ECONOMY we summarize all initiatives towards the “100 % green machine”. Our focus is on avoiding and reducing emissions. DMG MORI has already had a balanced Company Carbon Footprint since 2020 and a balanced Product Carbon Footprint since 2021 via the climate triple “Avoid – Reduce – Compensate”. We avoid and reduce emissions wherever possible. We compensate unavoidable emissions with CO2 certificates. This includes direct and indirect emissions from our own value creation as well as indirect emissions from upstream processes along the supply chain (scope 1, 2 and 3 upstream). All machines are produced resource-saving as GREENMACHINE. Further information can be found in the Sustainability Report 2022 on page 24 et seqq. With GREENMODE, we are also consistently increasing the energy and resource efficiency of our machines (scope 3 downstream).
However, dear shareholders, sustainability goes much further than that. This means: diversity, equal opportunities, compliance, the satisfaction and health of our employees as well as the common good are equally important to us.
Our future field Additive Manufacturing is without alternative and of high strategic importance. As a full liner for additive manufacturing processes, DMG MORI is the only manufacturer to cover the entire process chain – from design through additive manufacturing with the technologies of laser buildup welding with a powder nozzle and laser melting in the powder bed to post-production cutting. We realigned this important future field in the reporting year to make even better use of our “global footprint”. We are following our motto “in the markets for the markets” and increasing our resilience through increased regionalization.
The DMG MORI Qualified Products – DMQPs in short – are developing dynamically: In 2022, we were able to offer our customers worldwide more than 5,000 DMQP products in 100,000 technology variations from over 120 technology partners. Everything from a single source – everything for the perfect synergy of machine, components, peripherals and accessories – everything AI-based, online and intuitively configurable. As one-stop-shop!
“First Quality” means for us: excellent quality and 100 % customer satisfaction – along the entire value chain and without compromise. We achieve this through the following core elements of our “First Quality” strategy:
standardized components and interfaces,
own DMG MORI Components,
36-month warranty on all MASTER spindles,
100 hours quality test before delivery release,
use of the latest measuring methods for maximum accuracy,
my DMG MORI – the online customer portal for direct access to service experts.
Service Excellence is a high priority at DMG MORI. Everyday, over 1,500 experts work to further optimize this high-margin pillar of our business and to offer our customers the best possible service. We bundle our know-how in 17 Technology Excellence Centers. Over 800 application engineers are invol-ved in our customers’ development processes at an early stage.
GLOBE – Global One Business Excellence – stands for the implementation of a global ERP-system based on SAP S/4HANA. With this business and IT transformation project, DMG MORI is creating an efficient and resilient organizational structure to ensure standardized systems. Integrated processes are another success factor for the future.
Dear shareholders, DMG MORI’s success is a strong team effort. The tireless commitment of our employees in a year of further high stress is unique and makes me proud. Mindset and motivation simply fit excellently at DMG MORI. As “Global One Company”, we have improved the positive corporate culture even further. The basis for this are our TOP values: Trust, Openness and Passion. Above all, this makes us an attractive employer and is also the basis for our vision-mission statement: We want to be the world’s most attractive machine tool manufacturer with digitized and sustainable products! We empower our customers – in manufacturing and digitization!
DMG MORI is strategically well positioned and consistently uses its strengths. We are a technology leader in 57 industries and 88 countries – as a full liner. This global footprint is unique and the implementation of the strategic fit of automation, digitization and sustainability made by DMG MORI is exactly right. The success in financial year 2022 shows that we have done a very good job in the past years and that the focus on future fields and main sectors is paying off.
Now more than ever, it is important to operate sustainably and maximize efficiency. This saves valuable energy and resources. Every day, we work on automated and digitized manufacturing solutions for competitive production – starting from batch size 1, individually tailored to the needs of our customers. At our traditional Open House in Pfronten at the beginning of the current financial year, we presented 7 world premieres to more than 6,000 international trade visitors. Further innovations are in the starting blocks. Because this year is once again an EMO year. From 18 to 23 September 2023, DMG MORI will be the largest exhibitor, presenting a wide range of innovations as well as new, sustainable technology, automation and digitization solutions on more than 10,000 m2. I am convinced: we need even more engineers to solve our world’s problems of today and tomorrow!
The new level of geopolitical uncertainties will continue to keep us busy. 2023 will also be marked by high volatility – characterized by the new corona wave in China, globally disrupted supply chains, material shortages, high inflation as well as increasing prices for raw materials, transportation, logistics and energy as a result of the war in Ukraine. Added to this are rising interest rates, which are impacting the financing of capital goods. We are already sensing restraint in the markets but are confident for the current financial year. And there are good reasons for this:
We have a strong foundation and great employees.
We innovate and invest at a high level.
We believe in stable partnerships and have a resilient supply chain.
We have an order backlog of over € 1.6 billion and therefore a good basis.
For the financial year 2023, we plan order intake of around € 2.45 billion. Sales revenues are expected to be around € 2.35 billion. We estimate EBIT to be around € 170 million. Free cash flow is to be around € 80 million. Our forecasts are subject to the provision that the global market and economic conditions do not become more difficult.
2023 remains challenging. DMG MORI has a high degree of resilience and the strength to deal with changes quickly and agilely across the world. Our strong long-standing network with customers, partners and suppliers, our broad product portfolio, our speed of innovation as well as our highly qualified employees are the backbone of our success. With an excellent team, our valued customers and partners, we will face the continuing challenges.
My thanks go to our great customers, dedicated employees as well as our owners, who place their trust in us and support us. I would like to thank them personally as well as on behalf of the Executive Board team. Only those who work together excellently can be successful! I am sure: together as a team, we will succeed in further positioning DMG MORI for a strong future. Accompany us! Progress through sustainable process integration and technologies – that is DMG MORI.
Chairman of the Executive Board
Bielefeld, 13th March 2023
Managing successfully means managing sustainably! This is a matter of course for us. A high degree of process integration, end-to-end automation and digitization solutions – future-proof technology solutions from DMG MORI preserve resources, climate and the environment and thus make a positive contribution to greater sustainability. In short: our strategic fit of automation, digitization and sustainability is a complete success and exactly right. Today more than ever.
Sustainability and technology leadership form a symbiosis at DMG MORI, which we actively live: as a worldwide technology leader, DMG MORI assumes holistic responsibility for resources along the entire value chain. From raw materials to recycling – sustainability is firmly integrated into all structures and processes. Our manufacturing solutions are produced in a resource-saving way, are high-quality, durable, recyclable and maximally efficient. Sustainability is also increasingly in focus for our customers. In addition to energy-efficient machines, we also provide them with powerful tools to make their production efficient and dynamic.
DMG MORI is one of the most sustainable industrial companies worldwide. Our DMG MORI GREEN ECONOMY sets new standards. For us, resource-saving machine manufacturing is already a lived reality today. Under DMG MORI GREEN ECONOMY we summarize all initiatives for the “100 % green machine” (→ Climate and Environment, page 24 et seqq.):
1. GREENMACHINE – the resource-saving produced machine (scope 1, 2 and 3 upstream)
DMG MORI has already had a balanced Company Carbon Footprint since 2020 and a balanced Product Carbon Footprint since 2021 via the climate triple “Avoid – Reduce – Compensate”. Further information can be found in the chapter “Climate and Environment” on page 24 et seqq. We avoid and reduce emissions wherever possible. We compensate unavoidable emissions with CO2 certificates. This includes direct and indirect emissions from our own value creation as well as indirect emissions from upstream processes along the supply chain (scope 1, 2 and 3 upstream). At the same time, we are working intensively with our suppliers to sustainably reduce their CO2 emissions as well. Our energy management system is certified to ISO 50001 and our environmental management to ISO 14001.
2. GREENMODE – the resource-efficient machine operation at the customer’s site
DMG MORI machines also sustainably protect the environment during operation at the costumer’s site. With GREENMODE, we consistently increase the energy and resource efficiency of our machines (scope 3 downstream), for example through consumption-optimized components such as LED lighting, highly efficient drives according to IE3, regenerative braking, intelligent control of aggregates as well as the optimization of moving masses based on FEM simulations. With the CELOS APP “ENERGYSAVING”, our customers save up to 20 % energy in machine operation and at the same time significantly reduce process time. Our recycling-oriented product development according to VDI 2243 ensures that we continuously increase the use of recyclable and recycled materials in our production.
3. GREENTECH – our know-how for green technologies
Think green – and think big! DMG MORI is a driving force in manufacturing and progressive development of green technologies worldwide. We are an innovation leader in the production of environmentally friendly technologies: many of our customers manufacture highly innovative components on DMG MORI machines for wind turbines, hydropower plants, hydrogen electrolysis or electromobility, among others. With modern manufacturing processes, such as additive manufacturing, products can also be produced with reduced weight, optimized functionality as well as minimal transport distances while at the same time preserving resources. In the DMG MORI Excellence Centers, we support customers with our combined know-how from the idea to the finished product.
Sustainability plays a central role in the implementation of our corporate strategy. With our high-precision, sustainable machine tools and holistic technologies, we create opportunities to improve the lives of generations. In addition to environmental and climate protection, we focus on the satisfaction and health of our employees. We promote and demand diversity and equal opportunities. We pay attention to compliance in all respects and are committed to the common good with donations and various campaigns.
The United Nations’ Agenda 2030 provides guidance with 17 Sustainable Development Goals (SDGs). We are all called upon to implement them. We therefore talk about our commitment – internally and externally, also to motivate others. In order to contribute to the SDGs, we are setting ourselves concrete goals of our own: With our DMG MORI Energy Saving Challenges, we encourage our employees to implement ideas and sustainably reduce energy consumption at DMG MORI. Since September 2021, DMG MORI has committed itself to the goals of the “Science Based Targets” initiative, which is dedicated to limiting global warming to no more than 1.5 °C. To achieve this, we want to reduce our emissions in scope 1 & 2 by 46.2 % and in scope 3 by at least 13.5 % by 2030 (base year: 2019). We aim to increase this target to 27.5% in the current financial year. In addition, we are implementing the recommendations of the “Task Force on Climate-related Financial Disclosures” (TCFD) for voluntary and consistent disclosure of climate-related information. In 2022, DMG MORI was once again one of the TOP companies out of more than 1,000 applicants in the area of climate protection for the German Sustainability Award, the largest competition of its kind in Europe. The nomination alone shows that our high level of commitment to the climate is considered a first-class achievement. DMG MORI was awarded the Platinum Medal in the Sustainability Rating by the internationally renowned assessment institute EcoVadis. This means that we are among the TOP 1 % of over 35,000 companies evaluated worldwide.
DMG MORI will continue to stand for sustainable technologies, TOP values and innovations for the benefit of humans and the environment. This sustainability report shows how successful DMG MORI already is in terms of “Sustainability” and which goals we are pursuing. Welcome to the DMG MORI GREEN ECONOMY!
Chairman of the Executive Board
Member of the Executive Board
Member of the Executive Board