Date: May 12, 2022

Summary of Consolidated Financial Statements for the First quarter of Fiscal Year 2022 ended March 31, 2022 (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, 2022)

Listed company name:

DMG MORI CO., LTD.

Stock exchange listing:Prime 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

Filing date of quarterly financial statements: May 13, 2022
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, 2022 (January 1, 2022 to March 31, 2022)(Note: All amounts less than one million are disregarded)(1) Consolidated business results(% of change from same period in the previous year)
Profit before income
Operating profit

Sales revenues

taxes
million yen%

million yen

107,262

32.2

9,451

81,122

△7.0

3,986

Profit attributable toComprehensive

owners of the parent

incomeQuarterly profit% million yen%

million yen%

million yen

137.1

8,917

184.5

6,314

247.0

6,271

21.8

3,134

148.5

1,819 1,972.9

1,812% million yen

%

246.0

11,510113.5

1,306.4

5,392-

First quarter
ended March 31, 2022
First quarter
ended March 31, 2021

Basic earnings

Diluted earnings

per shareper share
Yen

Yen

46.66

46.66

10.38

10.36

First quarter
ended March 31, 2022
First quarter
ended March 31, 2021
(Note) Earnings per share is calculated based on the profit which excludes profit attributable to owners of other equity instruments.

(2) Consolidated financial position
Ratio of equity
Equity attributable toTotal assets

Equity per share attributable toTotal equity

attributable to owners ofowners of the parent

owners of the parent
the parent

million yen

million yen

million yen%

yen

March 31, 2022

636,180

224,959

220,68834.7

1,760.68

December 31, 2021

597,117217,279

213,13935.7

1,703.51(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.

2．Dividends
Record Date

Dividends per share
1Q

2Q

3Q

Year-end

Annual

yen

yen

yen

yen

yen

December 31, 2021

-

10.00

-

30.00

40.00

December 31, 2022

30.00

-

40.00

70.00

December 31, 2022 (Forecast)(Note) Revision of dividends forecast in the current quarter: Yes

3．Consolidated financial forecast for Fiscal Year 2022 (January 1, 2022 to December 31, 2022)(% of change from same period in the previous year)
Profit attributable toSales revenues

Operating profit

Basic earnings per shareowners of the parent

Full Year 2022

million yen%

million yen%

million yen%

yen

450,000

13.6

45,00095.1

28,000108.0

209.80(Note)
Revision of consolidated financial forecast in the current quarter: Yes
・We made a revision of sales revenues, operating profit and profit attributable to owners of the parent from the previous announcement released on February 10, 2022.
For details, please refer to the “1. Qualitative Information Regarding Quarterly Settlement of Accounts (3) Explanation of forecasts and other projections” on page 4.
・Exchange rate used for consolidated financial forecast for fiscal year 2022: JPY 120.0 /USD, 135.0 /EUR

4. Others(1) Changes in significant subsidiaries during the first quarter ended March 31, 2022: 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)
March 31, 2022: 125,953,683

December 31, 2021: 125,953,683

2. Number of treasury shares at the end of the period
March 31, 2022: 754,973

December 31, 2021: 984,204

3. Average number of outstanding shares during the period (cumulative from the beginning of the period)
January - March 2022: 125,048,820

January - March 2021: 124,196,144(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 (499,500 shares as of December 31, 2021, and 273,500
shares as of March 31, 2022). 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 (894,850 shares from January 1 to March 31, 2021, and 421,775 shares from January 1 to March 31, 2022).

- 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 2022 (Forecast),
please see “1. Qualitative Information Regarding Quarterly Settlement of Accounts (3) Explanation of forecasts and other projections” on page 4.
(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, 2022 (Thursday).

(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 ................................................................................................................................................. 4
2．Quarterly Consolidated Financial Statements ........................................................................................................................................................ 5(1) Quarterly consolidated statements of financial position..................................................................................................................................... 5(2) Quarterly consolidated statements of income ................................................................................................................................................... 7(3) Quarterly consolidated statements of comprehensive income .......................................................................................................................... 8(4) Quarterly consolidated statements of changes in equity ................................................................................................................................... 9(5) Quarterly consolidated statements of cash flows ............................................................................................................................................ 11(6) Notes on going concern assumption ............................................................................................................................................................... 13(7) Notes on quarterly consolidated financial statements ..................................................................................................................................... 13

1

1. Qualitative Information Regarding Quarterly Settlement of Accounts(1) Explanation of operating results
For the first quarter of the fiscal year 2022 (from January 1 to March 31), the sales revenues were JPY 107.3 billion (EUR 823 million), the operating
profit was JPY 9.5 billion (EUR 72 million), the profit before income taxes was JPY 8.9 billion (EUR 68 million) and the profit attributable to owners of
the parent was JPY 6.3 billion (EUR 48 million). (Euro amount is converted from yen at 130.4 yen, the average exchange rate between January 1 andMarch 31, 2022).
The consolidated order intake for the first quarter of 2022 was JPY 150 billion, an increase of 48% year-on-year that greatly exceeds the initial planof JPY 120 billion. It is the highest recorded order intake for a quarter since the last peak in the first quarter of fiscal year 2018. This was driven by
the continuously increasing demand for automation and full turnkey systems with 5-axis and mill-turn machines and large-scale projects for global
companies. As a result, the average order price per unit increased to JPY 47.2 million (FY 2021 average: JPY 39.4 million), contributing significantly
to the higher order intake. The order intake of our group company Magnescale Co., Ltd., specialized in production and sales of ultra-precision
measurement technologies, also hit a new record high. Furthermore, order intake for service and spare parts rose by 25% year-on-year due to thenormalizing business activities of customers.
The order intake increased in all regions. Japan increased by 82% year-on-year (composition ratio: 12%), Americas by 81% (22%), Europe by 44%(50%), China by 1% (10%) and Asia excluding China by 41% (6%). The order intake was also strong across all industries, especially in industries
such as space, medical, EV, die & mold, decarbonization technology and semiconductor production equipment. In addition, the demand from theenergy and commercial aircraft industry also started to show a positive trend.
We expect orders for machine tools, especially in combination with process integration and automation, to continue to grow throughout the second
quarter and beyond. The current forecast of consolidated order intake for the fiscal year 2022 is over JPY 500 billion, more that the initial plan of JPY
480 billion. The order backlog increased from JPY 164 billion at the end of 2021 to JPY 203 billion at the end of March 2022, and is expected to bearound JPY 220 billion at the end of December 2022. With an abundant amount of order backlog, we will strive to further stabilize our businessperformance.
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.
DMG MORI’s newly built Nara Product Development Center (Nara PDC) will start business operations from July 1, 2022. It will take over theheadquarter function of the Nagoya office in Aichi Prefecture. At the same time, DMG MORI’s Tokyo Global Headquarters (established in July 2014)
will maintain its principal functions to establish a 2-headquarter organization between Nara and Tokyo. Amidst increasing risks such as disasters,
epidemics, and cyber-attacks, having 2 headquarters will enable us to carry out core business operations quickly even in times of emergency. We willcontinue to provide stable sales and services to our customers by strengthening our business continuity system against all risk factors.
Regarding technology, DMG MORI opened the AM Lab & Fab (Additive Manufacturing Laboratory & Fabrication) at the Iga Global Solution Centerto support our customers' use of additive manufacturing. The AM Lab & Fab is equipped with DMG MORI’s newest additive manufacturing machines
to perform metal deposition and produce high-quality parts for customers in a temperature-controlled room. We will contribute to the spread anddevelopment of additive manufacturing through joint development with our customers.
Furthermore, DMG MORI launched the new Technology Cycle “Multi-threading 2.0” for worm gear processing on universal machines and a new
specification for NTX2500 | 3000 2nd Generation and NTX 3000 | 3000 2nd Generation that enables long shaft processing with 3000 mm distance
between centers. We will continue to provide more sophisticated, reliable, and investment-worthy products to meet the needs of customers.
For sales and service, DMG MORI released a new version of its Digital Twin Showroom (virtual replica of the Iga Global Solution Center) in February
2022. The Digital Twin Showroom has now additional machine models on display and is available in Japanese, English, German and Chinese.
At the same time, we are expanding our small-scale exhibitions "Technology Fridays" from Japan to our overseas locations to respond to customer
needs in personalized face-to-face meetings. We will continue to connect with customers both digitally and in the real world to propose optimal
solutions.
In accordance with DMG MORI’s Mission Statement “Play hard, study continuously and work together”, we believe that our employees’ health is oneof the most important foundations for sustainable growth of our company. Therefore, we are continuously improving our internal organization to2

contribute to long and healthy careers. Besides promoting balanced working styles by limiting the maximum working hours per day and standardizing
the full usage of annual paid holidays, we are also actively supporting male employees to take childcare leave.
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. Based on the belief that trust is fostered by fulfilling our responsibilities tosociety, we are actively contributing to local communities. In March 2022, we concluded a comprehensive agreement on partnership and cooperation
with Nara Women's University as part of our initiatives to foster next generation talents. By cooperating closely with Nara Women's University, we
would like to contribute to a greater diversity in the engineering field and to the technological progress in Japan.
On March 28, 2022, we also announced our support to the "Declaration of Partnership Building", a framework established by the Japanese Cabinet
Office, Ministry of Economy, Trade and Industry, Small and Medium Enterprise Agency, etc. We commit ourselves to building new partnerships bypromoting collaboration, co-existence, and co-prosperity with our supply chain and value-creating business partners.

<Consolidated results>
Consolidated results of the first quarter of the fiscal year ended March 31, 2022 is as follows:

Unit: 100 Million yen(Million EUR)

Sales revenues
Operating profit

Operating profit / Sales revenues
Profit attributable to owners of the parent<Forecast>January to

January to

March, 2021

March, 2022

811

1,073

261

4,500

(635)

(823)

(187)

(3,333)

40

95

55

450

(31)

(72)

(41)

(333)

4.9%

8.8%

3.9%pts

10.0%

18

63

45

280

(14)

(48)

(34)

(207)

Difference

January to
December, 2022

(Note) Euro amount is converted from yen at the average or forecasted exchange rate of each fiscal period; 127.7 yen/EUR for the figures of January
to March, 2021, 130.4 yen/EUR for those of January to March, 2022, and 135.0 yen/EUR for the figures of January to December, 2022.

(2) Explanation of financial position
Total assets at the end of the first quarter of fiscal year 2022 amounted to 636,180 million yen. Total equity is 224,959 million yen and ratio of equity
attributable to owners of the parent is 34.7%.

3

(3) Explanation of forecasts and other projections
We receive strong orders from various industries, mainly for space, medical, electric vehicles (EV), die & mold, decarbonization technology andsemiconductor production equipment.
Based on the above and business results of the first quarter ended March 31, 2022, we made an upward revision of consolidated financial forecast
for fiscal year 2022 from the previous announcement released on February 10, 2022.

Consolidated financial forecast
Unit: 100 Million yen(Million EUR)
Released on February 10

Released on May 12

January to December,

January to December,

2022

2022

<Reference>
Difference

January to
December, 2021

4,300

4,500

200

3,960

(3,185)(3,333)(148)(3,049)

400

450

50

231

(296)

(333)

(37)

(178)

Operating profit / Sales revenues

9.3%

10.0%

0.7%pts

5.8%

Profit attributable to owners of the

250

280

30

135

parent

(185)

(207)

(22)

(104)

Sales revenues
Operating profit(Note)
・Exchange rate used for consolidated financial forecast for fiscal year 2022: JPY 120.0 /USD and 135.0 /EUR.
・Euro amount is converted from yen at the average exchange rate of JPY 129.9 /EUR for fiscal year 2021.
・This forecast is based on information available as of the release of this report and assumptions of several uncertain factors which may affect thecompany’s results. Actual results might be different from the above estimates due to subsequent changes in the circumstances.

4

2．Quarterly Consolidated Financial Statements(1) Quarterly consolidated statements of financial position(Million Yen)

December 31, 2021

March 31, 2022

AssetsCurrent assets
Cash and cash equivalents

47,29851,753

Trade and other receivables

59,677

71,844

Other financial assets

5,557

4,972

Inventories

129,542

139,267

Other current assets

12,616

13,622

Total current assets

254,692

281,459

Property, plant and equipment

138,076

143,828

Right-of-use assets

22,09922,851

Goodwill

70,83474,252Other intangible assets

74,51477,569Other financial assets
Inn
Investments
in associates and joint ventures

21,98922,626

5,704

5,958

Deferred tax assets

5,132

3,983

Other non-current assets

4,073

3,649

Total non-current assets

342,425

354,720

597,117636,180

Non-current assets

Total assets

5

(Million Yen)

December 31, 2021

March 31, 2022

Liabilities
Current liabilities
Trade and other payables

54,16957,913

Interest-bearing bonds and borrowings

10,25913,727

Contract liabilities

65,707

76,771Other financial liabilities

74,677

81,479

Income taxes payable

4,734

5,232

Provisions

40,54343,925

Other current liabilities

4,316

5,322

Total current liabilities

254,409284,371

Interest-bearing bonds and borrowings

85,13386,184

Other financial liabilities

22,40624,060Net employee defined benefit liabilities

5,180

4,773

Provisions
K
Deferred tax liabilities

5,871

4,333

5,429

5,880

Other non-current liabilities

1,407

1,617

Total non-current liabilities

125,428

126,849

379,838

411,22151,115

51,115--

Other equity instruments

118,753

118,753

Treasury shares△1,889△1,449Retained earnings

52,81755,214

Other components of equity△7,657△2,946Equity attributable to owners of the parent

213,139

220,688

4,139

4,270

Total equity

217,279

224,959

Total liabilities and equity

597,117636,180

Non-current liabilities

Total liabilities
EquityShare capital
Capital surplus

Non-controlling interests6(2) Quarterly consolidated statements of income(Million Yen)First quarter ended
March 31, 2021
(January 1 toMarch 31, 2021)

First quarter ended
March 31, 2022
(January 1 toMarch 31, 2022)

Revenues
Sales revenues

81,122

107,262

Other operating revenues

2,771

2,072

83,894

109,334

Changes in merchandise, finished goods and work in progress for
sale

△304

△417

Costs of raw materials, consumables

35,562

46,621

Personnel costs

27,06832,521

Depreciation and amortization

5,492

5,584

Other operating costs

12,08915,573

Total costs

79,90899,882

Operating profit

3,986

9,451

Financial income

66

147

Financial costs

939

678

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

20△2Profit before income taxes

3,134

8,917

Income taxes

1,314

2,602

Profit

1,819

6,314

1,812

6,271

7

43

1,819

6,314

10.38

46.66

10.36

46.66

Total revenue
Costs

Profit attributable to:
Owners of the parent
Non-controlling interests
ProfitEarnings per share
Basic (yen)daDiluted(yen)d7

(3) Quarterly consolidated statements of comprehensive income(Million Yen)First quarter ended
March 31, 2021
(January 1 toMarch 31, 2021)
ProfitFirst quarter ended
March 31, 2022
(January 1 toMarch 31, 2022)

1,819

6,314

Remeasurements of defined benefit plans

219

431

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

288

514

Subtotal

508

946

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

3,695

5,553

Effective portion of changes in fair value of cash flow hedges△636△1,315

Share of other comprehensive income of associates and joint
ventures accounted for using equity method

5

11

3,064

4,249

3,572

5,195

5,392

11,5105,373

11,414Non-controlling interests

1895

Comprehensive income

5,392

11,510Subtotal
Total other comprehensive income
Comprehensive income

Comprehensive income attributable to:
Owners of the parent

8

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

Capitalcapitalsurplus

Subtotalearnings
40,452△21,148

185,420

4,475

189,895

1,812

7

1,819

3,561

3,561

11

3,572

3,561

5,373

18

5,392

Retainedsharesequityinstruments
As of January 1, 2021

51,115-

118,735△3,735

Profit1,812

Other comprehensive income
Total comprehensive income

-

-

-

-

Noncontrolling Total equity
interests

Other
componentsof equity

Treasury

1,812

Distributions to owners
△713

△713

△713

△0

△0

552

552

of other equity instruments
Acquisition of treasury shares△0

Disposal of treasury shares

784

△171

Dividends△60△1,242△1,242△44△1,286

△195

-

-

-

-

Transfer between retained
195
earnings and capital surplus
Share-based payments

1△1

Changes in interests inconsolidated

△24

△24

24

-

subsidiaries’ capital
Transfer from othercomponents of equity to

261

△261

-

△1,889△323△1,428△20△1,448

△0

△29

△29

-

retained earnings
Total transaction with
-

0

-

784

owners of the parent
Acquisition of△0
non-controlling interests
Total changes in ownershipinterests in subsidiaries and

-

△0

-

-

-

-

△0

△29

△29

51,115-

118,735△2,95040,375△17,911

189,364

4,444

193,809others
As of March 31, 2021

9

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

Capitalcapitalsurplus

Subtotalearnings
52,817△7,657

213,1394,139

217,279

6,271

43

6,314

5,143

5,143

52

5,195

5,143

11,41495

11,510Retainedsharesequityinstruments
As of January 1, 2022

51,115-

118,753△1,889Profit6,271

Other comprehensive income
Total comprehensive income

-

-

-

-

Noncontrolling Total equity
interests

Other
componentsof equity

Treasury

6,271

Distributions to owners
△539

△539

△539

366

366

of other equity instruments
Disposal of treasury shares

△74

440

Dividends△3,752△3,752

△14

-

△42

△3,795

Transfer between retained
14-

earnings and capital surplus
Share-based payments

76

76

58

135

Transfer from othercomponents of equity to

431

△431

-

△3,874△431△3,84915△3,833

△16

19

2

-

retained earnings
Total transaction with
-

16

-

440

owners of the parent
Acquisition of△16
non-controlling interests
Total changes in ownershipinterests in subsidiaries and

-

△16

-

-

-

-

△16

19

2

51,115-

118,753△1,44955,214△2,946

220,688

4,270

224,959

others
As of March 31, 202210

(5) Quarterly consolidated statements of cash flows(Million Yen)First quarter ended

First quarter ended

March 31, 2021

March 31, 2022

(January 1 to(January 1 toMarch 31, 2021)

March 31, 2022)

Cash flows from operating activities
Profit before income taxes

3,134

8,917

Depreciation and amortization

5,492

5,584

143

62

872

531

△20

2

△953

△1,528Inventories (△: increase)△2,694△4,497

Trade and other receivables (△: increase)△3,930△8,637

Trade and other payables (△: decrease)△3,176

3,693

Contract liabilities (△: decrease)

6,278

7,672

Provisions (△: decrease)

△497

393

Other

△79

1,948

4,569

14,144

Interest received

69

148

Dividends received

0

5

△439

△451

△1,566△1,276

2,633

12,570△2,074△7,08120

76△2,354△3,138△120△0Proceeds from sale of investment securities

20

-

Other

49

6

△4,458△10,136

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

SubtotalInterest paid
Income taxes paid
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
Purchases of investment securities

Net cash flows used in investing activities

11

(Million Yen)First quarter ended

First quarter ended

March 31, 2021

March 31, 2022

(January 1 to(January 1 toMarch 31, 2021)

March 31, 2022)

Cash flows from (△used in) financing activities
Net increase (△decrease) in short-term borrowings

3,500

3,464

Repayments of long-term borrowings

△312

△372

Repayments of lease liabilities△1,495△1,430

Dividends paid

△1,091△3,417

Dividends paid to non-controlling interests

△42

△40

Payments for obligations for non-controlling interests△2-

Acquisition of treasury shares

△0

-

△713

△539

414

1,985

Net cash flows from (△used in) financing activities

256

△350

Effect of exchange rate changes on cash and cash equivalents

879

2,371

Change in cash and cash equivalents

△689

4,454

Cash and cash equivalents at the beginning of period

33,75447,298Cash and cash equivalents at the end of period

33,06551,753Distributions to owners of other equity instruments
Other

12

(6) Notes on going concern assumption
Not applicable.

(7) Notes on quarterly 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 condensed quarterly consolidated financial statements of the Company as of March 31, 2022 comprise the Company, its subsidiaries, associates
and joint ventures (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 Condensed Quarterly Consolidated Financial Statements have been prepared in accordance with International AccountingStandards (IAS) 34 “Interim Financial Reporting” issued by the International Accounting Standards Board. As the Company meets the requirementsof a “Specified Company applying Designated International Financial Reporting Standards”, pursuant to Article 1-2 of the Ordinance on Terminology,
Forms and Preparation Methods of Quarterly Consolidated Financial Statements (Ordinance of the Ministry of Finance No. 64 of 2007), the “Quarterly
Consolidated Financial Statements Ordinance”), it has applied the provisions of Article 93 of said Ordinance.

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

(3) Functional and presentation currency
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, 2021, with the exception that income tax for the first quarter ended March 31, 2022 was
calculated based on the estimated average annual effective tax rate.

3. Segment information(1) Outline of reportable segments
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
Group has not aggregated its operating segments.
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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:First quarter ended March 31, 2021 (January 1 to March 31, 2021)(Million Yen)
Reportable Segments

MachineTools
Sales revenues
External customers
Inter-segment
Total
Segment income

Industrial
Services

Adjustments (Note)

Corporate
Services

Total

54,84933,81926,268
5,232

81,11739,051

88,66831,500

1,954

3,375

-

-

Financial income
Financial costs
Profit before income taxes

Elimination

Consolidated

5367△39,419

81,122-

120,168

373△39,419

81,122

5,330△1,769

446

4,006

-

-

-

66
△939
3,134

(Note) ‘’Adjustments to segment income’’ include elimination of inter-segment transactions and expenses related to corporate services.

First quarter ended March 31, 2022 (January 1 to March 31, 2022)(Million Yen)
Reportable Segments

MachineTools
Sales revenues
External customers
Inter-segment
Total
Segment income
Financial income
Financial costs
Profit before income taxes

Industrial
Services

Adjustments (Note)

Corporate
Services

Total

70,37145,91336,882
5,861

107,254
51,775116,285

42,743

6,045

6,448

-

-

Elimination

Consolidated

7
367△52,142

107,262-

159,029374△52,142

107,262

12,494△2,605

△440

9,448

-

-

-

147
△678
8,917

(Note) ‘’Adjustments to segment income’’ include elimination of inter-segment transactions and expenses related to corporate services.

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