Date: February 10, 2022

Summary of Consolidated Financial Statements for the Fiscal Year 2021 ended December 31, 2021 (IFRS basis)(All financial information has been prepared based on the original Japanese-language document, Summary of Consolidated Financial
Statements for the Fiscal Year 2021 announced on February 10, 2022)

Listed company name:

DMG MORI CO., LTD.

Stock exchange listing:First Section of Tokyo Stock Exchange

Code Number:

6141

Company Representative:

Masahiko Mori, President

Contact Person

Hirotake Kobayashi, Executive Vice President, Accounting / Finance HQ, Executive Officer

Phone:+81-(0)3-6758-5900

URL https://www.dmgmori.co.jp

Expected date of the ordinary general shareholders’ meeting: March 22, 2022
Filing date of financial statements: March 22, 2022
Estimated starting date of dividend payment: March 23, 2022
Preparation of supplementary explanatory materials: Yes
Holding of annual earnings release conference: Yes

1.

Consolidated business results of the fiscal year 2021 ended December 31, 2021 (January 1, 2021 to December 31, 2021)(Note: All amounts less than one million are disregarded)(1) Consolidated business results(% of change from same period in the previous year)
Profit before

Profit attributable toOperating profit

Sales revenues

Net profit

Comprehensive income

income taxes

owners of the parent

million yen%

million yen%

million yen%

million yen%

million yen%

million yen%

396,01120.6

23,067116.1

19,609284.0

13,231

679.7

13,460671.0

30,985-328,283△32.4

10,674

△71.4

5,106

△83.8

1,696

△91.0

1,745

△90.3

△3,469-Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2020

Ratio of net profit to equity
Basic earnings

Diluted earnings

Ratio of profit before income

Ratio of operating profit

taxes to total assets

to sales revenues

attributable to owners of theper shareper share
parent
Yen

Yen

%

%

%

91.75

91.75

6.8

3.5

5.8

3.40

3.40

1.1

1.0

3.3

Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2020
(Note) Earnings per share is calculated based on the profit which excludes profit attributable to owners of other equity instruments.

(2) Consolidated financial position

Total assets

Equity attributable toRatio of equity attributable Equity per share attributableowners of the parent

to owners of the parent

to owners of the parent

Total equity

million yen

million yen

million yen%

yen

December 31, 2021

597,117217,279

213,13935.7

1,703.51

December 31, 2020

526,526

189,895

185,42035.2

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 other equity instruments.

(3) Consolidated cash flows
Cash flows from operating

Cash flows used in investing

Cash flows from (△used in)activities

activities

financing activities

Balance of cash and cash equivalents
at the end of the fiscal year

million yen

million yen

million yen

million yen

December 31, 2021

49,733△19,376△18,270

47,298December 31, 2020

13,647△18,859

10,79233,754

2.

Dividends
Ratio of dividend to
Total amount of

Dividend payout
equity attributable to

Dividends per share

1Q

2Q

3Q

Year-end

Annualdividends

ratio(Annual)(Consolidated)owners of the parent(Consolidated)

yen

yen

yen

yen

yen

million yen%%

December 31, 2020

-

10.00

-

10.00

20.00

2,499

587.7

1.3

December 31, 2021

-

10.00

-

30.00

40.00

5,021

43.0

2.4

-

30.00

-

30.00

60.00

December 31, 2022 (forecast)

32.3(Note) Dividend payment of 22 million yen for the shares of the company held by DMG MORI Employee Shareholders Association Exclusive Trust are included in the
total amount of dividends in fiscal year 2020, and that of 21 million yen in 2021.

3.

Consolidated financial forecast for fiscal year 2022 (January 1, 2022 to December 31, 2022)(% of change from same period in the previous year)
Sales revenues

Full Year 2022

Profit attributable to

Basic earnings

owners of the parent

per share

Operating profit

million yen%

million yen%

million yen%

yen

430,000

8.6

40,00073.4

25,00085.7

185.92(Note) Exchange rate used for consolidated financial forecast for the fiscal year 2022: JPY 110.0/USD 130.0/EUR (the fiscal year 2021: JPY 109.8/USD, 129.9/EUR)

4.

Others(1) Changes in significant subsidiaries during the fiscal year ended December 31, 2021: No(2) Changes in accounting policies applied and changes in accounting estimates
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(3) Number of shares outstanding (Common shares)
1. Number of shares outstanding at the end of the period (including treasury shares)

December 31, 2021: 125,953,683

December 31, 2020: 125,953,683

2. Number of treasury shares at the end of the period
December 31, 2021: 984,204

December 31, 2020: 1,943,804

3. Average number of outstanding shares during the period (cumulative from the beginning of the period)
January - December 2021: 124,578,683

January - December 2020: 123,300,149(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 499,500
shares as of December 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 theaverage number of shares during the period (1,358,923 shares from January 1 to December 31, 2020, and 701,131 shares from January 1 to December 31, 2021).

(Reference) Overview of nonconsolidated business results(1) Overview of nonconsolidated business results(% of change from same period in the previous year)
Operating loss

Ordinary loss

Net profit

(△)

(△)

(△loss)Sales revenues
million yen%

million yen%

million yen%

million yen%

94,065

9.2△7,540-△2,191

-

2,751

-

86,165△34.7△8,474-△5,876-△1,597-

Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2020

Basic earnings

Diluted earnings(△loss) per share(△loss) per share

yen

%

yen

%

22.07

-

22.07

-

△12.94-△12.94-

Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2020

(2) Overview of nonconsolidated financial positions
Total assets

Total net assets

Net assets per share

Equity ratio

million yen

million yen%

yen

402,699

112,15927.8

894.71

412,586

113,06227.4

909.51

Fiscal year ended
December 31, 2021
Fiscal year ended
December 31, 2020

- Information regarding implementation of review procedures
These financial results are not subject to yearly audit 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 2022 (Forecast),
please see “1. Analysis of management performance and consolidated financial status (2) Forecast for the fiscal year 2022” on page 3.
(How to obtain supplementary explanatory materials for financial results)
The supplementary explanatory material for the financial results is scheduled to be posted on the Company's website on February 10, 2022 (Thursday).

(Attached Documents) Index

1. Analysis of management performance and consolidated financial status ................................................................................................................ 2(1) Explanation of operating results ....................................................................................................................................................................... 2(2) Forecast for the fiscal year 2022....................................................................................................................................................................... 3(3) Explanation of financial position ....................................................................................................................................................................... 4(4) Basic policy concerning profit appropriation and dividend payment .................................................................................................................. 6
2. Basic policy for selection of accounting standards .................................................................................................................................................. 6
3. Consolidated Financial Statements ......................................................................................................................................................................... 7(1) Consolidated statements of financial position ................................................................................................................................................... 7(2) Consolidated statements of income .................................................................................................................................................................. 9(3) Consolidated statements of comprehensive income ....................................................................................................................................... 10(4) Consolidated statements of changes in equity ................................................................................................................................................ 11(5) Consolidated statements of cash flows ........................................................................................................................................................... 14(6) Notes on going concern assumption ............................................................................................................................................................... 16(7) Notes on consolidated financial statements .................................................................................................................................................... 16
4. Others .............................................................................................................................................................................................................. 1919

1

1. Analysis of management performance and consolidated financial status(1) Explanation of operating results
For the fiscal year 2021 (from January 1 to December 31), the sales revenues were JPY 396 billion (EUR 3,049 million), the operating profit was
JPY 23.1 billion (EUR 178 million), the profit before income taxes was JPY 19.6 billion (EUR 151 million) and the profit attributable to owners of theparent was JPY 13.5 billion (EUR 104 million). (Euro amount is converted from yen at 129.9 yen, the average exchange rate between January 1 andDecember 31, 2021).
The consolidated order intake for January-December 2021 was JPY 456 billion, an increase of 63% year-on-year reflecting the rapid recovery of the
global economy. As a result, the machine order backlog at the end of the fiscal year 2021 was JPY 164 billion, up by JPY 68 billion from the JPY 96
billion at the end of 2020. The average order price per unit continues to rise because of the surging demand for 5-axis machines and large-sizedautomation 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 24% year-on-year, suggesting rising production activities by customers.
As for the machine order intake by region, we continue to see a major recovery in Europe (2 times higher than the same period in 2020), as well asin Japan (+89%) where the demand recovered steadily each quarter. Americas showed an order intake growth by +51% and China by +73%. Excluding
China, order intake increased by +42% in Asia. The global demand for machine tools continues to grow across the world. Regarding the order intake
trend by industry, orders are particularly strong in the industries of semiconductor manufacturing equipment, aerospace, die & mold and electricvehicle (EV). In addition, inquiries for commercial aircraft and energy-related applications, which had been sluggish since last year, are beginning toemerge. With our strong direct sales and services as base, we will promote automation and turnkey solutions with a focus on process integration andaim for further order intake growth throughout 2022.
As mentioned in DMG MORI’s Mission Statement, we aim to provide comprehensive processing automation systems to customers, combining
hardware and software components and optimized after-sales services. In other words, DMG MORI offers machine tools, unique products, internallyproduced components, and peripheral equipment and thereafter establishes processing systems at customers’ facilities, upgrades machining
processes for higher productivity, maintains the systems, or offers financing.
In January 2022, we established DMG MORI Production CO., Ltd. by company split as a dedicated entity to manage the production business at ourIga and Nara plants. By having clearly divided responsibilities and managing our business and financial performance separately based on function,
we will improve our efficiency as a Group, and this will enable us to further increase our corporate value.
In addition, we are also reorganizing and reinforcing our production system. In Japan, our assembly has been divided between our two production
sites. In the future, all assembly will be centralized at Iga Campus and we will develop Nara Campus into the biggest system solution center of themachine tool industry.
At the same time, we are increasing our global production capacities. In China, we are currently expanding our Tianjin plant and are building a newplant in Pinghu, near Shanghai. In Egypt, we are investing into the construction of our first plant in Cairo.
Regarding our technology, we are continuously expanding the functions of our online portal site my DMG MORI, which allows customers to manage
their machine tool information in a comprehensive and efficient manner. In 2021, my DMG MORI launched the new function "Service Request" thatenables customers to make repair and recovery requests and order parts easily online.
Furthermore, we have released the “Magazine Operation Panel” for easy and efficient tool setup and “speedMASTER 30K”, a new model in our
high-speed spindle series optimized for machining of die & mold and small-diameter tools. We will continue to improve the functionality, reliability andvalue of our products to tend to the diverse demand of our customers.
To showcase our technology to customers, we participated at exhibitions such as CIMT2021 held in China, EMO held in Milan, Italy, and MECT heldin Nagoya. In addition, we continue to hold our small-scale exhibitions called "Technology Days" at the Iga and Tokyo showrooms.
In the area of digitization, we are constantly updating the Digital Twin Showroom, a digital replica of the Iga showroom. We also provide online
training and e-learning material through our "Digital Academy" to bring our technology closer to customers as well as develop excellent machine tool
operators. We will continue to propose the best solutions by connecting with our customers both in the digital and real world.
In accordance with DMG MORI’s mission statement “Play hard, study continuously and work together”*, we believe that our employees’ health isone of the important foundations for sustainable growth of our company. Therefore, we are promoting balanced and efficient working styles by limiting
the maximum possible working hours per day and standardizing the full usage of annual paid holidays. We are also putting effort into creating ahealthy work environment by providing health related e-learning courses and introducing balanced and nutritious meals in our company cafeteria.

2*Full version: “Play hard and be dynamic to enrich our private lives, study continuously and be open to advance professional career, and work together and be innovative to bring innovation to theworkplace”

Aiming towards a sustainable, decarbonized and recycling-oriented society, a society where people and nature can coexist in harmony, the entire
DMG MORI group is making concerted efforts to become carbon neutral.
In November 2021, DMG MORI CO., LTD. and our group company DMG MORI AKTIENGESELLSCHAFT in Germany obtained the SBT (Science
Based Targets) approval for our greenhouse gas emission reduction targets until 2030. In order to achieve these newly set targets, we will not only
reduce our own CO₂ emissions, but also the emissions of our customers by providing environmentally friendly products.
Besides supporting our customers, we are also aiming to make our entire supply chain more sustainable and have introduced the supplier monitoring
platform by Integrity Next. We will strive to realize a sustainable society and increase our corporate value by spreading our concept of sustainability
throughout the supply chain.

<Consolidated results>
Consolidated results of the fiscal year ended December 31, 2021 is as follows:
Unit: 100 Million yen(Million EUR)
January to

January to

December, 2020

December, 2021

3,283

3,960

677

(2,695)(3,049)

(353)

107

231

124

(88)

(178)

(90)

3.3%

5.8％

2.6％pts

17

135

117

(14)

(104)

(89)

Sales revenues
Operating profit

Operating profit / Sales revenues
Profit attributable to owners of the parent

Difference(Note) Euro amount is converted from yen at the average exchange rate of each fiscal period; 121.8 yen/EUR for the figures of January to December,
2020, 129.9 yen/EUR for those of January to December, 2021.

(2) Forecast for the fiscal year 2022
We expect an increase in orders compared to the fiscal year 2021. We, the DMG MORI CO., LTD. Group, will continue to make further efforts toincrease our corporate value through activities in the fields of development, manufacturing, sales and service. The forecast for the business results(consolidated) for the fiscal year 2022 is as follows:
Unit: 100 Million yen
Fiscal Year 2022
(January 1 to
December 31, 2022)
Sales revenues

4,300

Operating profit

400

Profit attributable to owners of the parent

250
185.92

Basic earnings per share (yen)(Note) Exchange rate used for consolidated earnings forecast for fiscal year 2022: JPY 110.0/USD, 130.0/EUR

Note concerning statements about the future, etc.
This material contains earnings estimates, plans, policies, business strategies, targets, forecasts, and perceptions and judgments about matters offact concerning the future of DMG MORI CO., LTD. and the DMG MORI CO., LTD. Group. Its predictions, expectations, assumptions, plans,3perceptions and judgments are based on information available to DMG MORI CO., LTD. as of the report date. For this reason, there is a possibility
that actual results may differ from the forecasts above.

(3) Explanation of financial position
1. Assets, liabilities and equity
The comparison between the fiscal year 2020 and fiscal year 2021 is as follows:・Assets
Current assets are 254,692 million yen. This is mainly because Cash and cash equivalents increased by 13,544 million yen, Trade and otherreceivables increased by 17,113 million yen, and Inventories increased by 8,533 million yen.
Non-current assets are 342,425 million yen. This is mainly because Property, plant and equipment increased by 7,266 million yen, Other intangible
assets increased by 7,570 million yen and Other financial assets increased by 5,353 million yen.
As a result, total assets are 597,117 million yen.

・Liabilities
Current liabilities are 254,409 million yen. This is mainly because Trade and other payables increased by 6,261 million yen, Contract liabilities
increased by 32,027 million yen, Other financial liabilities increased 16,592 million yen and Provisions increased by 6,949 million yen while Interestbearing bonds and borrowings decreased by 26,733 million yen.
Non-current liabilities are 125,428 million yen. This is mainly because Interest-bearing bonds and borrowings increased by 19,719 million yen while
Other financial liabilities decreased by 12,735 million yen.
As a result, total liabilities are 379,838 million yen.

・Equity
Equity is 217,279 million yen. This is mainly because Retained earnings increased by 12,365 million yen and Other components of equity increased
by 13,491 million yen.

(Reference)(Million Yen)
December 31, 2020

December 31, 2021

Difference

Current assets

209,557

254,692

45,134Non-current assets

316,969

342,425

25,455Current liabilities

217,674

254,409

36,735

Non-current liabilities

118,957

125,428

6,471

Equity189,895

217,279

27,3834

2. Cash flows during the fiscal year 2021
(Million yen)
Fiscal Year 2020

Fiscal Year 2021

(January 1 to(January 1 to

December 31, 2020)

December 31, 2021)

Operating activities

13,64749,733

Investing activities△18,859△19,376

Financing activities

10,792△18,270

Cash and cash equivalents at the end of the year

33,75447,298

Status of cash flows and its fluctuation factors for the fiscal year 2021 are as follows:
・Cash flows from operating activities
Net cash provided from operating activities was 49,733 million yen. The main factors for the increase are 19,609 million yen of Profit before
income taxes, 21,894 million yen of Depreciation and amortization, 30,599 million yen of increase in Contract liabilities and 5,937 million yen ofincrease in Provisions. The main factors for the decrease are 15,479 million yen of increase in Trade and other receivables and 5,685 million yen
of Income tax paid.
・Cash flows used in investing activities
Net cash paid out for investing activities was 19,376 million yen. The main factor for the increase is 5,440 million yen of Proceeds from sales ofinvestment securities. The main factors for the decrease are 12,645 million yen of Purchases of property, plant and equipment and 10,606 million
yen of Purchases of intangible assets.
・Cash flows used in financing activities
Net cash paid out for financing activities was 18,270 million yen. The main factors for the increase are 39,887 million yen of Proceeds fromissuance of bonds with stock acquisition rights and 29,717 million yen of Proceeds from issuance of other equity instruments. The main factors
for the decrease are 21,730 million yen of Repayments of current borrowings, 20,882 million yen of Repayments of long-term borrowings, 10,000
million yen of Repayments of bonds, 30,000 million yen of Repayments of other equity instruments and 6,035 million yen of Repayments of leaseliabilities.

As a result, cash and cash equivalents as of December 31, 2021 are 47,298 million yen, increased by 13,544 million yen from December 31,
2020.

3. Trends in cash flow related indexes
Fiscal Year 2020

Fiscal Year 2021

(January 1 to(January 1 to

December 31, 2020)

December 31, 2021)

35.2

35.7

37.0

41.4

1,018.28

268.25

6.2

23.5

Ratio of equity attributable to ownersof the parent (%)
Ratio of equity attributable to ownersof the parent measured at fair value (%)
Cash flows to interest bearing loans ratio (%)
Interest coverage ratio (times)

5

(Notes)
Ratio of equity attributable to owners of the parent: Equity attributable to owners of the parent / total assets
Ratio of equity attributable to owners of the parent measured at fair value: Market capitalization / total assets
Cash flows to interest bearing loans ratio: Interest-bearing liabilities / operating cash flows
Interest coverage ratio: Operating cash flows / interest payments
・These indexes are calculated based on consolidated financial figures.
・Market capitalization is calculated based on the closing share price at end of term x outstanding shares (excluding treasury shares) at end of term.
・For cash flows, “Cash flows from operating activities” from the consolidated statements of cash flows is used. Interest-bearing liabilities include allliabilities on the balance sheets that incur interest. For the interest payments, the amount is based on the “Interest paid” on the consolidated
statements of cash flows from which continuous compensation payment arising from the domination agreement is subtracted.

(4) Basic policy concerning profit appropriation and dividend payment
The DMG MORI Group strives to enhance corporate value for our shareholders, who understand that machine tools are both capital assets andproducts which need longer period of investment cycle, from 10 to 20 years. Our principle for profit appropriation is stable and continuous payment ofdividend based on an overall judgment concerning our future business plan, business results, financial conditions, and so on.
For internal reserve, we continue to invest in the development of pivotal new products and technologies as well as consolidating our production
equipment in order to reinforce our competitive strength in the market.
For fiscal year 2021, we paid an interim dividend per share of 10 yen and plan to pay year-end dividend per share of 30 yen, for a full-year total of
40 yen. For fiscal year 2022, we plan to issue an interim dividend per share of 30 yen and year-end dividend per share of 30 yen, for a full-year totalof 60 yen.

2. Basic policy for selection of accounting standards
We have introduced the International Financial Reporting Standards (“IFRS”) to improve international comparability of financial information since
fiscal year 2015.

6

3. Consolidated Financial Statements(1) Consolidated statements of financial position(Million Yen)

December 31, 2020

December 31, 2021

AssetsCurrent assets
Cash and cash equivalents

33,75447,298Trade and other receivables

42,56359,677

Other financial assets

4,254

5,557

121,008

129,542

Other current assets

7,976

12,616

Total current assets

209,557

254,692

Property, plant and equipment

130,809

138,076

Right-of-use assets

19,79222,099Goodwill

68,807

70,834

Other intangible assets

66,94474,514

Other financial assets
Inn
Investments in associates and joint ventures

16,63621,989

5,222

5,704

Deferred tax assets

4,064

5,132

Other non-current assets

4,691

4,073

Total non-current assets

316,969

342,425

526,526

597,117

Inventories

Non-current assets

Total assets

7

(Million Yen)

December 31, 2020

December 31, 2021

Liabilities
Current liabilities
Trade and other payables

47,90854,169Interest-bearing bonds and borrowings

36,993

10,259Contract liabilities

33,67965,707

Other financial liabilities

58,08574,677

Income tax payable

3,451

4,734

Provisions

33,59340,543

Other current liabilities

3,961

4,316

Total current liabilities

217,674

254,409

Interest-bearing bonds and borrowings

65,41385,133

Other financial liabilities

35,142

22,406Net employee defined benefit liabilities

5,817

5,180

Provisions
K
Deferred tax liabilities

5,007

5,871

6,374

5,429

Other non-current liabilities

1,201

1,407

Total non-current liabilities

118,957

125,428

336,631379,838

51,115

51,115--

Other equity instruments

118,735

118,753

Treasury shares△3,735△1,889Retained earnings

40,452

52,817

Other components of equity△21,148△7,657

Equity attributable to owners of the parent

185,420

213,139

4,475

4,139

Total equity

189,895

217,279

Total liabilities and equity

526,526

597,117

Non-current liabilities

Total liabilities
EquityShare capital
Capital surplus

Non-controlling interests8(2) Consolidated statements of income(Million Yen)
Fiscal year 2020
(January 1 to
December 31, 2020)

Fiscal year 2021
(January 1 to
December 31, 2021)

Revenues
Sales revenues

328,283

396,011

6,451

6,103

334,734

402,114

Changes in merchandise, finished goods and work in progress forsale△3,946

7,148

Costs of raw materials, consumables and goods for resale

145,083

170,917

Personnel costs

107,818

119,327

Depreciation and amortization

24,11821,894

Other operating costs

50,98559,759Total costs

324,060

379,047

Operating profit

10,67423,067

Financial income

357

429

Financial costs

5,399

3,919

Share of profits (△losses) of associates and joint ventures
accounted for using equity method

△526

30

Profit before income taxes

5,106

19,609

Income taxes

3,409

6,377

Profit1,696

13,231

Owners of the parent

1,745

13,460Non-controlling interests

△49

△229

Profit1,696

13,231

3.40

91.75

3.40

91.75

Other operating revenues
Total revenue
Cost

Profit attributable to:Earnings per share
Basic (yen)daDiluted(yen)d9

(3) Consolidated statements of comprehensive income(Million Yen)
Fiscal year 2020
(January 1 to
December 31, 2020)
ProfitFiscal year 2021
(January 1 to
December 31, 2021)

1,696

13,231Remeasurements of defined benefit plans

87

380

Change in fair value measurements of financial assets
designated at fair value through other comprehensive income

198

10,826

Subtotal

286

11,207△5,4787,013

Effective portion of changes in fair value of cash flow hedge

11

△473

Share of other comprehensive income of associates accounted
for using equity method

13

6

Subtotal△5,452

6,546

Total other comprehensive income△5,166

17,754△3,46930,985

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss

Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations

Comprehensive income

Comprehensive income attributable to:
Owners of the parent△3,37531,230Non-controlling interests

△93

△244

Comprehensive income△3,46930,98510

(4) Consolidated statements of changes in equity(Million Yen)
Equity attributable to owner of the parent
Share

Capitalcapital
As of January 1, 2020

Other equity

surplus51,115

Treasury

instruments-

shares49,505components

earnings△6,319Profit

NonOther

Retained

controlling

Subtotal

Total equity

interestsof equity

46,399124,006

3,800

127,807

1,745

△49

1,696

△5,121△5,121△44△5,166△5,121△3,375△93△3,469△16,695

1,745

Other comprehensive
incomeTotal comprehensive income

-

-

-

-

1,745

Issuance of other equity
70,00070,00070,000

△770

△770

△770

△1,086△1,086

△0

△0

1,657

1,657

instruments
Other equity instruments
issuance costs
Distributions to owners△1,086of other equity instruments
Acquisition of treasury shares△0

Disposal of treasury shares

2,743

△933

Dividends△152△4,916△4,916△117△5,034

△865

-

-

-

-

Transfer between retained
865
earnings and capital surplus
Share-based payments

3△3

Changes in consolidated
△82

△82

539

456

△76

△76

76

-

62

237

300

subsidiaries
Changes in equityfrom transaction of
non controlling interest
Capital increase of
62
consolidated subsidiaries
Transfer from other components

△825

825

-

△7,692668

64,787735

65,523

1

32

34

-

of equity to retained earnings

Total transaction with-△1

69,2292,583

owners of the parent
Acquisition of1
non-controlling interests
Changes in ownership interests
-

1

-

-

-

-

1

32

34

51,115-

118,735△3,73540,452△21,148

185,420

4,475

189,895

in subsidiaries and others
As of December 31, 2020

11

(Million Yen)
Equity attributable to owner of the parent
Share

Capitalcapital
As of January 1, 2021

Other equity

surplus51,115-

Treasury

Retained

instruments

sharesearnings

118,735△3,735

Profit40,452

NonOthercomponents

controlling

Subtotal

Total equity

interestsof equity
185,420

4,475

189,895

13,460△229

13,231

17,76917,769△15

17,754

17,76931,230△244

30,985△21,148

13,460

Other comprehensive
incomeTotal comprehensive income

-

-

-

-

13,460Issuance of other equity
30,00030,00030,000

△282

△282

△282

△29,699△30,000△30,000△2,123△2,123

△0

△0

1,413

1,413

instruments
Other equity instruments
issuance costs
Payments of other equity△300
instruments
Distributions to owners△2,123of other equity instruments
Acquisition of treasury shares△0

Disposal of treasury shares

1,846

△325

Dividends△107△2,488△2,488

△849

-

△87

△2,576

Transfer between retained
849-

earnings and capital surplus
Share-based payments

58

△58

-

253

253

19

19

Issuance of bonds with stock
253

acquisition rights
Capital increase of
△71

71

-

-

△84

△84

△226

△226

93

△133

3

3

11

15

△71
consolidated subsidiaries
Increase/decrease in noncontrollinginterests due to decrease in
number of consolidated
subsidiaries

Increase/decrease in equity
due to acquisition of shares in
consolidated subsidiaries
Sale of shares of consolidated
subsidiaries
Transfer from other components

4,365△4,365-△1,095△4,278△3,522-of equity to retained earnings

Total transaction with
-

△11

18

1,845

owners of the parent

12

22△3,499

Acquisition of non-controlling
11

11

△113

△102

interests
Changes in ownership interests
-

11

-

-

-

-

11

△113

△102

51,115-

118,753△1,88952,817△7,657

213,1394,139

217,279

in subsidiaries and others
As of December 31, 202113

(5) Consolidated statements of cash flows(Million Yen)
Fiscal year 2020

Fiscal year 2021

(January 1 to(January 1 to

December 31, 2020)

December 31, 2021)

Cash flows from (△used in) operating activities
Profit before income taxes

5,106

19,609Depreciation and amortization

24,11821,894

△387

230

5,042

3,489

526

△30

△4,632△817

Inventories (△: increase)△217△4,130Trade and other receivables (△: increase)12,498△15,479

Trade and other payables (△: decrease)△10,106

4,876

Contract liabilities (△: decrease)△3,80230,599Provisions (△: decrease)△1,737

5,937

Other

△1,323△7,73425,08558,444

Interest received

260

354

Dividends received

104

84

Interest paid

△3,394△3,464

Income tax paid

△8,408△5,685

13,64749,733△12,062△12,645

2,211

1,210

△8,080△10,606

△130

-

-

△399

Acquisition of associated companies, net of cash acquired

△137

△276

Purchases of investment securities△747△1,518Proceeds from sales of investment securities

75

5,440

Other

12

△580

△18,859△19,376

Loss (△gain) on sales or disposal of property, plant andequipment, and intangible assets
Financial income and costs (△: gain)
Share of profits of associates and joint ventures accounted
for using equity method (△: gain)
Other non-cash transactions (△: gain)
Changes in asset and liability items:

Subtotal

Net cash flows from operating activities
Cash flows used in investing activities
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Purchase of investments in subsidiaries resulting in change
in scope of consolidation
Payments for sale of shares of subsidiaries resulting inchange in scope of consolidation

Net cash flows used in investing activities

14

(Million Yen)
Fiscal year 2020

Fiscal year 2021

(January 1 to(January 1 to

December 31, 2020)

December 31, 2021)

Cash flows from (△used in) financing activities
Net increase (△decrease) in current borrowings

2,680△21,730

Proceeds from long-term borrowings

37,801

5,000

Repayments of long-term borrowings△46,148△20,882-

39,887-△10,000

69,22929,717-△30,000

Repayments of lease liabilities△5,780△6,035

Dividends paid

△4,917△2,496

△121

△299

△1

△0

Payments for obligations for non-controlling interests△42,289△8

Distributions to owners of other equity instruments△1,086△2,123

300

-

-

△133

-

15

1,125

820

10,792△18,270

478

1,459

Change in cash and cash equivalents

6,058

13,544

Cash and cash equivalents at the beginning of period

27,69533,754

Cash and cash equivalents at the end of period

33,75447,298Proceeds from issuance of bonds with stock acquisitionrightsRepayments of bonds
Proceeds from issuance of other equity instruments
Repayments of other equity instruments

Dividends paid to non-controlling interests
Acquisition of treasury shares

Proceeds from capital increase of consolidated subsidiaries
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Proceeds from sale of shares of subsidiaries not resulting inchange in scope of consolidation
Other
Net cash flows from (△used in) financing activities
Effect of exchange rate changes on cash and cash equivalents15(6) Notes on going concern assumption
Not applicable.

(7) Notes on consolidated financial statements
1. Reporting entity

DMG MORI Co., Ltd. (the “Company”) is a company established under the Companies Act of Japan. The Company is domiciled in Japan and its
registered office is located at 106 Kitakoriyama-cho, Yamato-Koriyama City, Nara.
The consolidated financial statements of the Company as of December 31, 2021 comprise the Company, its subsidiaries and associates (collectively,
the “Group”). The Group engages in businesses related to manufacturing and sales of machine tools (machining centers, turning centers, turn-mill
complete machining centers and universal milling machines for five-axis machining), software (user interface, technology cycles and embedded
software) and measuring devices, and provides total solutions utilizing the machine tools, software and measuring devices with service support,
applications and engineering.

2. Basis of preparations(1) Accounting standards complied with
The Company’s Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRSs)
issued by the International Accounting Standards Board. As the Company meets the requirements of a “Specified Company applying DesignatedInternational Financial Reporting Standards”, pursuant to Article 1-2 of the Ordinance on Terminology, Forms and Preparation Methods of Consolidated
Financial Statements (Ordinance of the Ministry of Finance No. 28 of 1976, the “Consolidated Financial Statements Ordinance”), it has applied theprovisions of Article 93 of said Ordinance.

(2) Basis of Measurement
The consolidated financial statements have been prepared on a historical cost basis, with the main exception of financial instruments which aremeasured at fair value.

(3) Presentation currency and units used
The condensed quarterly consolidated financial statements are presented in Japanese yen, which is the Company’s functional currency. All financial
information presented in Japanese yen has been rounded down to the nearest million, unless otherwise stated.

(4) Significant accounting policy
The significant accounting policies adopted for the condensed quarterly consolidated financial statements are the same as those for the consolidated
financial statements for the fiscal year ended December 31, 2020.

3. Segment information(1) Scope of segment reporting
The operating segments of the Group are based on its business areas for which discrete financial information is available, and they are regularly
reviewed by the Board of Directors and corporate officers for the purpose of making decisions about resource allocation and performance assessment.
The classification of the operating segments is based on the products and services and the associated internal reporting and management methods.
As a result, the business activities of the Group are categorized into “Machine Tools” and “Industrial Services,” as its two reportable segments. The
Company has not aggregated its operating segments.
16

The “Machine Tools” segment generates its revenue through the production and sales of machine tools. The “Industrial Services” segment generates
its revenue through the provision of services and solutions related to machine tools.

(2) Calculation methods of sales revenues, income or loss by each reportable segment
The accounting methods for the reportable segments are essentially the same as Condensed Quarterly Consolidated Financial Statements.
The amount of segment income is based on operating profit and Share of profits (losses) of associates and joint ventures accounted for using equity
method. Inter-segment sales revenues are based on arm’s length prices.

(3) Segment sales revenues and income
The segment sales revenues, income or loss and other items by each reportable segment are summarized as follows:

Fiscal year 2020 (January 1 to December 31, 2020)(Million Yen)
Reportable Segments

Industrial
services

Machine Tools
Sales revenues
External customers
Inter-segment
Total
Segment income

Adjustments (Note)

Total

228,201
150,244

100,061
19,313

328,262
169,558

378,445

119,374

16,9449,949

Corporateservices

Elimination

Consolidated

21
1,433

△170,991

328,283-

497,820

1,454△170,991

328,283

26,893△17,864

1,119

10,148Financial income
Financial costs

357△5,399Profit before income taxes

5,106(Note) “Adjustments to segment income” include elimination of inter-segment transactions and expenses related to corporate services.

Fiscal year 2021 (January 1 to December 31, 2021)(Million Yen)
Reportable Segments

Machine Tools
Sales revenues
External customers
Inter-segment
Total
Segment income

Industrial
services

Adjustments (Note)

Total

Corporateservices

Elimination

Consolidated

266,662
166,217

129,32123,863395,983
190,08027
1,510△191,591

396,011-432,880

153,184

586,064

1,538△191,591

396,011

19,404

16,82936,234△14,416

1,281

23,098Financial income
Financial costs

429△3,919Profit before income taxes

19,609(Note) “Adjustments to segment income” include elimination of inter-segment transactions and expenses related to corporate services.

174. Earnings per share
Basis of calculation for basic earnings per share and diluted earnings per share is as follows:
Items

Fiscal year 2020
(January 1 to
December 31, 2020)

Fiscal year 2021
(January 1 to
December 31, 2021)

Profit attributable to owners of the parent
1,745

13,460

1,326

2,030

419

11,429--419

11,429123,300

124,578

121-

123,421

124,578

Basic earnings per share (yen)

3.40

91.75

Diluted earnings per share (yen)

3.40

91.75

(million yen)

Profit not attributable to owners of the parent

Profit used for basic earnings per share
attributable to ordinary shareholders of the parent(million yen)
Adjustment for diluted earnings (million yen)
Diluted earnings (million yen)

Weighted-average number of common shares(Thousands of shares)

Increase in number of common stock shares fordiluted earnings per share
Increase due to exercising stock options(Thousands of shares)
Weighted-average number of common shares
outstanding for diluted earnings per share(Thousands of shares)(Note)
・Basic earnings per share is calculated by dividing profit attributable to owners of the parent after deducting the amount attributable to owners ofother equity instruments by the average number of common shares excluding the average number of treasury shares during the year. Diluted earnings
per share is calculated by adjusting for the effects of all dilutive potential common shares.
・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 average number of treasury shares for calculating basic earnings per
share and diluted earnings per share.

18

5. Significant subsequent events
Not applicable.

4. Others
Changes in members of the Board of Directors and Statutory Auditors (effective on March 22, 2022)(1)

Changes in representative director
Not applicable.

(2)

Changes in other members of the Board of Directors and Statutory Auditors
Not applicable.

19