DMG MORI AG

Role of the administrative, management and supervisory bodies

Reference: pages 111-112.

DMG MORI AG defines its administrative, management and supervisory bodies as the Executive Board (executive, two members in the reporting year) and the Supervisory Board (non-executive, twelve members: six shareholder representatives and six employee representatives) (page 111).

The Supervisory Board was composed of five female (42%) and seven male (58%) members, across four nationalities, average age 59 (previous year: 58). Nine of twelve members (75%) are independent, unchanged from the prior year. The Executive Board had two male members across two nationalities, average age 69 (previous year: 68) (page 111).

"Individual responsibility lies with the CEO of DMG MORI AG due to his existing responsibilities in sustainability, which were expanded in line with the CSRD." The "Sustainability & Business Development" team, established in 2024, supports the CEO and reports to the Executive Board and the Finance and Audit Committee of the Supervisory Board at regular meetings; its members have training in management systems, internal auditing and management consulting, supplemented by external consultants (page 112).

Information provided to and sustainability matters addressed by the administrative, management and supervisory bodies

Reference: page 112.

"The 'Sustainability & Business Development' team informs the Supervisory Board and the Executive Board on the topics covered in the Sustainability Statement at least twice a year at regular meetings of the Finance and Audit Committee and the Executive Board."

All IROs relevant to financial year 2025 were taken into account and changes from the prior year were explained; these IROs were incorporated into strategic decision-making at the discretion of the Executive Board. The team also continuously informs other specialist departments, so that "no further reports to the Executive Board were necessary" beyond the twice-yearly cycle.

Integration of sustainability-related performance in incentive schemes

Reference: pages 130-131.

Climate-related aspects are an integral part of the Executive Board (CEO) remuneration system: alongside a fixed base salary, the Executive Board receives short-term (STI) and long-term (LTI) variable components, and a "carbon dioxide emissions" modifier scales the LTI base value. The modifier bands for 2025 total CO2e emissions are: 1.2 at or below 814,819 t CO2e; 1.0 at 855,560 t CO2e; 0.8 at 896,300 t CO2e or more. "The reduction target is in line with the Science Based Targets" set by DMG MORI CO. LTD. (Scope 1+2 -46.2%, Scope 3 -27.5% by 2030 vs. 2019), translated into an annual linear path for DMG MORI AG. "There is no incentive system for the Supervisory Board in the form of variable compensation components."

Disclosed total GHG emissions for 2025 (E1-6, page 136) were 793,527 t CO2e market-based (803,632 t location-based), both below the 814,819 t threshold for the top modifier band.

Statement on due diligence

Reference: pages 112-113 (table T.41, Allocation of ESRS to the core elements of the duty of care).

"As the ESRS do not contain any rules of conduct regarding due diligence in sustainability, we are guided exclusively by the core elements of the ESRS when preparing the Sustainability Statement."

Table T.41 maps the five core due-diligence elements to ESRS 2 paragraphs: embedding in governance/strategy/business model to GOV-2, GOV-3 and SBM-3; stakeholder engagement to GOV-2, SBM-2 and IRO-1; identifying and assessing negative effects to IRO-1 and SBM-3; measures against negative effects to MDR-P and topic-related ESRS; and tracking effectiveness and communication to MDR-M and MDR-T plus topic-related ESRS.

Risk management and internal controls over sustainability reporting

Reference: page 113.

Risk management and opportunities management are described in the Opportunities and Risk Report (page 70 et seqq.). For sustainability reporting, "the risk management system serves as the starting point for the materiality analysis," with impact/opportunity/risk assessment aligned to the risk-management categorisation and a thematic environmental/social/governance split.

Coordination: the "Sustainability & Business Development" department and Risk Management reconcile the double materiality analysis with the risk and opportunity management system at least every six months, to avoid duplication and ensure consistency.

2025 update: "adapted and revised internal control processes were created for the (quantitative) data collection process for sustainability reporting," targeting completeness and integrity of data, accuracy of estimates, availability of upstream/downstream value-chain data, and timing. The processes documented in FY2024 were reviewed and updated with all responsible parties, including process controls involving both specialist departments and the Sustainability & Business Development team.

Strategy, business model and value chain

Reference: pages 113-114.

DMG MORI AG is part of the DMG MORI group, a "worldwide leading manufacturer of high-precision machine tools," represented in 45 countries with 128 sales and service locations, including 18 production plants; the wider "Global One Company" employs more than 13,500 people (page 113).

Strategy is organised under Machining Transformation (MX), combining Process Integration, Automation, Digital Transformation (DX) and Green Transformation (GX), serving the aviation & space, data & semiconductor, die & mold, mobility and medical sectors, plus the DMQP partner program and full machine life-cycle services (page 113-114).

In the reporting year the company "further developed and officially adopted" its global "Global One Sustainability Strategy" in line with GX, setting initial targets and monitoring mechanisms it intends to review and adjust in the coming years (page 114).

Interests and views of stakeholders

Reference: page 114.

Stakeholder dialogue runs through the "Corporate Responsibility" manual, with trade fairs, Annual General Meetings, forums and events. "The Code of Conduct forms the basis for our interactions with all our stakeholders," and employees are identified as the most important stakeholder group, engaged through employee representatives and interdisciplinary sustainability coordinators.

Stakeholder interests and viewpoints are captured through the materiality analysis process described under IRO-1, and "the Executive Board and the Supervisory Board are informed of the results as part of sustainability reporting."

Material impacts, risks and opportunities and their interaction with strategy and business model

Reference: pages 115-117 (table T.42, Material IROs).

Table T.42 lists the material impacts, risks and opportunities identified by the 2025 double materiality analysis, grouped under Climate change mitigation (own operations and value chain), Resources inflows, Health & safety, training, working conditions, adequate wages, freedom of association, employee satisfaction (own workforce), Working conditions of value-chain workers, Health & safety of consumers/end-users, and Whistleblower protection, supplier relationships, corruption & bribery (business conduct).

The company-specific topics "employee satisfaction" and "corporate responsibility" were added alongside the ESRS 1 AR16 topic list following a peer/ratings plausibility check (see IRO-1). Further interaction between strategy and the material IROs is described in the relevant topical ESRS chapters; the resilience of the strategy and business model was considered as part of the financial-effects assessment shown in table T.42.

Description of the processes to identify and assess material impacts, risks and opportunities

Reference: pages 117-118.

The double materiality analysis follows ESRS 1 paragraph 3 (impact materiality inside-out; financial materiality outside-in), using "a multi-level approach" across all activities and geographies, based on the ESRS 1 AR16 topic list plus a competitor/ratings check that added the company-specific topics "employee satisfaction" and "corporate responsibility."

Stakeholders were engaged via selected employee representatives (no external experts). Severity/likelihood were assessed for impacts; "all impacts on human rights were classified as material regardless of the assessment." Both dimensions use a 1-25 scale with a threshold of 17, unchanged year on year.

"Accordingly, 'non-material' sustainability aspects... are ESRS E2 Environmental Pollution, ESRS E3 Water and Marine Resources, ESRS E4 Biodiversity and Ecosystems and ESRS S3 Affected Communities." A simplified LEAP screening was applied to pollution/biodiversity; no external stakeholder consultation was carried out.

Disclosure requirements in ESRS covered by the undertaking's sustainability statement

Reference: page 119; content index table T.39 (pages 104-108); Annex B datapoints table T.43 (pages 119-121).

"Disclosure requirements that were followed in preparing the Sustainability Statement based on the results of the materiality analysis are listed in table T.39 Contents of the Sustainability Report." T.39 sets out every chapter and disclosure requirement actually reported, with its page number, across General, Environmental, Social and Governance Information.

Table T.43 separately lists the mandatory datapoints derived from other EU legislation under ESRS 2 Annex B, marking each as a page reference, "not material" or "omitted."

2025 update: for the first time, "G1-4 cases of corruption or bribery" was assessed as material; peer benchmarking was also carried out on CSRD disclosure practice.

Transition plan for climate change mitigation

Reference: pages 131-134 (table T.48, Decarbonization measures).

DMG MORI CO. LTD. has committed to reducing Scope 1+2 emissions by 46.2% and Scope 3 emissions by 27.5% by 2030 versus a 2019 base year, plus net-zero by 2050, following SBTi guidelines; this binds DMG MORI AG via an annual linear reduction path (page 131-132).

Key levers (page 132-134): switching to green electricity (completed at all German, Polish and Italian production sites); annual efficiency investments (e.g. the Bielefeld production-hall roof renovation, lighting modernisation); a new Integrity Next CO2 management software module to exchange Scope 3 workpiece-level emissions data with suppliers; and GREENMODE, a customer-facing energy-saving package delivering "energy savings of over 30%" at the customer's site, TÜV SÜD-certified and recertified in 2025. Table T.48 names four central measures with time horizons to 2026-2030.

Funding: "In the reporting year, there was still no specific budget plan for the key levers for decarbonization and the transition plan... we are currently unable to disclose any monetary amounts of CapEx and OpEx." No qualitative assessment of locked-in GHG emissions was carried out in 2025. "€0 was invested in coal-, oil- and gas-related economic activities" and DMG MORI AG is not excluded from the EU Paris-aligned benchmarks.

Identification of climate-related risks and scenario analysis

Back-filled from ESRS 2 SBM-3 and IRO-1, where this content is disclosed in the FY2025 report (pages 117-118, 131). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

"During the materiality analysis carried out in the reporting year, DMG MORI AG systematically recorded the general climate risks on an ongoing basis in accordance with ESRS guidelines. No fundamental distinction was made between climate-related physical risks and transition risks" (page 131).

No separate scenario-based procedure was used: "DMG MORI AG does not currently have such a separate procedure for identifying and assessing climate-related transition risks and opportunities" for its own operations (page 139), and for the value chain, "DMG MORI AG does not have a procedure for identifying and assessing climate-related physical and transition risks and opportunities in the value chain. Due to the complexity and length of our supply chains, this would only be possible at considerable expense" (page 142). No named climate scenario (e.g. SSP or IEA pathway) is used. Per ESRS guidance, the absence of formal scenario analysis is not itself a gap to flag; it is the company's own disclosed position.

Resilience in relation to climate change

Back-filled from ESRS 2 SBM-3, where this content is disclosed in the FY2025 report (page 131). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

"No additional dedicated resilience analysis regarding climate risks was carried out in the reporting year" (SBM-3, page 131).

The report nonetheless states that "DMG MORI AG's ability to adapt its business model to climate change in the short, medium and long term, including in terms of continued access to finance and affordable cost of capital, the ability to repurpose, modernize or decommission existing assets, relocate its product and services portfolio or retrain its workforce, is integral to our daily business activities and our sustainability strategy" (page 131). Climate and business scenarios referenced under IRO-1 "form the basis for us to identify assets and business activities exposed to risk" and feed into strategy and investment decisions.

Policies related to climate change mitigation and adaptation

Reference: page 139 (own operations); page 142 (value chain).

Own operations: DMG MORI AG has operated an energy management system under ISO 50001 since 2015, covering eight of 59 sites with the greatest environmental impact (previous year: eight of 60) plus the vehicle fleet, including the seven European production plants and Geretsried. Effectiveness was confirmed by DEKRA Certification GmbH for the reporting year. A local energy team and a central energy manager support each site; degree of fulfilment is monitored continuously and reported to the Executive Board (page 139).

Value chain: covered by the internal "Guideline for Respecting Human Rights and Labor Practices," which "acknowledges its responsibility in its own business activities and in the supply chain," including environmental due diligence obligations. The "Risk and Compliance" department owns implementation; the guideline primarily follows the German Supply Chain Act rather than being explicitly ESRS-aligned, though the company states it is "considering aligning these more closely with the ESRS in future" (page 142).

Actions and resources in relation to climate change policies

Reference: page 140 (own operations); page 143 (value chain).

Own operations (page 132-133, table T.48): the new Head of Health and Safety role aside, climate actions include the ISO 50001-governed efficiency programme, the Bielefeld roof renovation and site lighting modernisation, GREENMODE (over 30% customer-side energy savings, TÜV SÜD-certified), and the Integrity Next CO2 management software for supplier data exchange.

Value chain (page 143): measures are "essentially reflected" in the E1-1 transition plan, since Scope 3 is directly linked to the upstream value chain; German Supply Chain Act preventive measures (supplier webinars, training, audits of direct and indirect suppliers) also serve to prevent environmental-obligation breaches, detailed further under S2-4.

Targets related to climate change mitigation and adaptation

Reference: page 141 (own operations); page 143 (value chain); pages 136-138 (table T.51/T.52 progress).

DMG MORI CO. LTD. has committed, with SBTi, to reduce Scope 1+2 emissions by 46.2% and Scope 3 emissions by 27.5% by 2030 against a 2019 baseline, plus net-zero by 2050; this obligation extends to DMG MORI AG via an annual linear path. "A sector-specific decarbonization path, climate and political scenarios or other future developments... were not explicitly taken into account in the calculation."

2030 target values (t CO2e, market-based): Scope 1+2 target 26,096 (2019 base 48,505; 2025 actual 32,600); Scope 3 target 643,386 (2019 base 887,429; 2025 actual 760,927).

Value chain: the overarching Scope 3 target is met via the same Science Based Targets and transition plan described under E1-1; the GHG-reduction contribution of the individual decarbonisation levers to Scope 3 "we cannot quantify clearly and conclusively at this time."

Energy consumption and mix

Reference: pages 134-135 (tables T.49, T.50).

Energy consumption, MWh (2025 / 2024):

Coal and "other fossil sources" are nil in both years. The fossil share rose from 62.9% to 70.7% of total consumption.

Energy generation (table T.50): total generated rose to 12,094 MWh (2024: 8,890), almost all self-consumed PV output, with only a marginal amount fed into the grid.

Energy intensity: 75.58 MWh/m€EUR (2025) versus 57.52 MWh/m€EUR (2024) – intensity worsened as total consumption rose 23% while net sales fell 6% (to €2,090.4m). The company's activities fall under NACE code C.28.4 "Manufacture of machine tools," classified as a climate-intensive sector under Delegated Regulation (EU) 2022/1288 Annex I.

Gross Scopes 1, 2, 3 and Total GHG emissions

Reference: pages 136-138 (tables T.51 CO2 balance sheet, T.52 GHG intensity).

t CO2e (2019 base / 2024 / 2025 / change vs 2024):

Scope 1+2 market-based has a 2030 SBTi target of 26,096 t (-46.2% vs 2019) and Scope 3 a 2030 target of 643,386 t (-27.5% vs 2019); both carry a 2050 net-zero target.

GHG intensity (t CO2e/m€EUR): location-based 384 (2025)/385 (2024); market-based 380 (2025)/378 (2024). Net sales: €2,090m (2025)/€2,228m (2024).

Scope 3 by category: largest is Category 11, operation of products sold: 387,776 t (2024: 499,963; -22%), followed by Category 1, purchased goods and services: 313,035 t (+20%). Several categories are "n.s." (not significant).

Policies related to resource use and circular economy

Reference: page 144.

"At DMG MORI AG, we want to use resources sustainably. Resource management as part of central purchasing is firmly anchored in our sustainability management concept and is an integral part of our 'Corporate Responsibility' handbook." The handbook's fields of action target material savings along the value chain via digitalisation, product quality and the use of recycled/recyclable materials, plus reparability and selective interchangeability of machine components.

The manual applies group-wide and is accessible to all employees on the intranet; responsibility sits with the Executive Board, supported by local coordinators. Forward direction: "we want to focus our resource management explicitly on moving away from the use of primary raw materials towards the use of secondary (recycled) resources and the sustainable procurement and use of renewable resources," under the developing Green Transformation (GX) strategy, targeting the scarce-raw-materials cost risk identified in the materiality analysis.

Actions and resources related to resource use and circular economy

Reference: page 144.

"No operational measures or financial resources to mitigate the risk... are planned in the reporting year or in the current budget planning, as we have initially focused on further developing the processes introduced for collecting quantitative data."

Product-level measures continue regardless: high technology integration lets complex operations such as grinding or gear cutting run on one machine instead of several, reducing material use; machines are also designed for durability using additively manufactured parts and recycled/recyclable materials.

Targets related to resource use and circular economy

Reference: page 144.

"Regarding the measures described above, we have not set any measurable, results-oriented targets in line with the minimum disclosure requirements" – the company instead focused first on building its quantitative data-collection processes introduced in FY2024, and is "continuously evaluating whether it makes sense to define specific targets."

A qualitative direction is stated: working toward "a steadily increasing proportion of recyclable and recycled materials in our products and services." "There is no dedicated tracking of the effectiveness of the aforementioned measures in relation to the material sustainability-related risk."

Resource inflows

Reference: pages 144-145.

"DMG MORI AG does not source any (conflict) minerals such as gold, tantalum, tungsten or tin as direct raw materials," though this cannot be confirmed for the entire multi-level global upstream value chain. Key purchased components include cast iron beds and steel covers.

Total weight of materials purchased (best estimate): approximately 189,000 t in 2025 (previous year: approx. 215,380 t), the decline attributed to lower purchased weight in the "packaging" and "castings" categories. Of this, approximately 42,000 t is digitally mapped with exact weight data via the CO2 management software (previous year: approx. 74,350 t, a ~18% drop in digitally-recorded weight); the remainder is extrapolated by product group.

Reuse/recycling: approximately 44,700 t of secondary components, products and materials (previous year: approx. 48,350 t), a rate of approximately 23.7% of estimated total purchased weight (previous year: 22.4%), derived from the software's own life-cycle recycling-percentage models by material type (avoiding double counting between "reuse" and "recycling"). The organic-material share sourced sustainably could not be measured; there is no external validation of these KPIs, though the GOV-5 internal control process was applied.

Policies related to own workforce

Reference: pages 151, 153, 156-157, 158, 160.

Health and safety (page 151-152): a new Head of Health and Safety role was created in 2025 to develop global occupational safety/health guidelines (worldwide scope, covering temporary and on-call workers and third parties on site); oversight sits with local occupational safety officers reporting to each managing director, with the Executive Board ultimately responsible. Aligned with ISO 45001 in Germany.

Human rights and working conditions (page 156-157): governed by the Code of Conduct, the annual "Modern Slavery Statement" (with DMG MORI UK Limited), and a Group human-rights guideline in force since February 2023 referencing UN, OECD and ILO standards; a five-point "integrated responsibility approach" covers recognition, risk assessment, remedial measures, reporting and complaints. Discrimination grounds named include nationality, gender, age, religion, sexual orientation and disability; DMG MORI AG "undertook to pay a direct compensation levy for severely disabled employees and made creditable payments... to workshops for the disabled."

Collective bargaining (page 160): respects the Co-determination and Works Constitution Act.

Wages and training policies sit under S1-10 and S1-13 (market-oriented base pay plus variable pay and benefits; permanent learning folded into the sustainability strategy rather than a standalone guideline).

Processes for engaging with own workforce and workers' representatives about impacts

Reference: page 148.

DMG MORI AG runs regular performance reviews and an "open, feedback-oriented management culture," plus a central online complaints procedure available at all times. For the 2025 materiality analysis, "we engaged directly with selected employees without involving employee representatives."

"Blue collar" employees, who carry the greater share of potential negative effects, are represented via works councils (Group and company level) and collective agreements; trade-union representatives also sit on the Supervisory Board. Works councils are briefed by the Executive Board in regular and ad hoc meetings and involved in key employee-affecting decisions. "There was no standardized evaluation of the effectiveness of our cooperation with employee representatives in the reporting year," and there has been "no systematic involvement of employee representatives in connection with the transition plan for climate protection."

Processes to remediate negative impacts and channels for own workforce to raise concerns

Reference: page 149.

Remediation is governed by the German Supply Chain Act: "DMG MORI AG will immediately take... corrective action if it is determined that a human rights or environmental violation has already occurred or is imminent." The closer the company is to, and the more it contributes to, a violation, the more serious the required corrective action, including timetabled minimisation concepts and effectiveness monitoring. The Executive Board holds ultimate responsibility for verifying remedy effectiveness, supported by employee-representative review.

The whistleblower system provides a dedicated complaints channel for the workforce. "A systematic review of the extent to which the above channels were used by affected persons in our workforce in relation to each significant impact did not take place in the reporting year."

Taking action on material impacts on own workforce

Reference: pages 152, 154, 157-158, 159, 160, 162.

Health & safety (page 152): the new Head of Health and Safety role; DMG MORI Poland Sp. z o.o.'s Pleszew plant obtained ISO 45001 certification in the reporting year. No further operational measures or budget were planned, as focus stayed on introducing quantitative processes; no effectiveness follow-up was carried out.

Human rights/working conditions (page 157-158): minimum local-company requirements against child/forced labour (age verification, ban on unlawful wage deductions, fair treatment of migrant workers); the annual Human Rights Impact Assessment, first run in 2022 under the UN Guiding Principles, continued in the reporting year with an effectiveness follow-up on the prior year's measures.

Training (page 154): a new training centre in Pfronten opened in early 2026 (150 training places across ~4,500 m²), with €9.4 million invested during the reporting year; trainees were involved in its design. New industrial-clerk training began at the Munich site.

Adequate wages, freedom of association, employee satisfaction (pages 159-160, 162): each area states "no further operational measures or financial resources... are planned" beyond existing practice, and no effectiveness follow-up was carried out in the reporting year, as the company prioritised building quantitative-data processes.

Targets related to own workforce

Reference: pages 152, 154, 158, 159, 160, 162.

Across health & safety, training, working conditions, adequate wages, freedom of association/collective bargaining and employee satisfaction, the report states the same consistent position for the reporting year: "DMG MORI AG has not set itself any targets with regard to [the relevant impacts/risks/opportunities]. The reason for this is that we initially focused on further developing the processes for collecting quantitative data that were introduced in the financial year 2024. We are now continuously evaluating whether it makes sense to define specific targets in the context of our sustainability strategy."

At the overarching level (SBM-3/GOV-1, page 112-114): "there are no separate, specific goals for ESRS S1"; the company's broader sustainability strategy and monitoring mechanisms, adopted in the reporting year, are intended to be developed into topic-level targets going forward.

Characteristics of the undertaking's employees

Reference: pages 149-150 (tables T.59-T.61).

Headcount is fully recorded (no estimation) as at 31 December 2025.

By employment type and gender (2025 / 2024): permanent contracts 6,943 (5,952 M / 991 F) vs 7,000 (5,970 M / 1,030 F); temporary contracts 154 (121 M / 33 F) vs 233 (204 M / 29 F); apprentices/trainees 286 (236 M / 50 F) vs 265 (224 M / 41 F); on-demand labour nil both years. Total headcount: 7,383 (2025) vs 7,498 (2024).

By gender: male 6,309 (2025) / 6,398 (2024); female 1,074 (2025) / 1,100 (2024); diverse nil both years.

By country (2025 / 2024 where captured): Germany 4,721 (2025); Poland 777 / 780; Italy 539 / 554; China 397 / 432; France 194 / 185; Turkey 99 / 100; United Kingdom 96 / 96, plus a further ~14 countries each below 100 employees. Only Germany and Poland meet the ≥50-employee / ≥10%-of-total threshold for country-level breakout under S1-6 AR55.

Collective bargaining coverage and social dialogue

Reference: pages 160-161 (table T.69).

Collective bargaining coverage: 68% of employees in the reporting year (previous year: 67%). Employee-representation coverage: 71% (previous year: 68%).

Table T.69 shows workplace social-dialogue coverage is in the 80-100% band for Germany (both years) and for Poland (both years), the only EEA countries meeting the ≥50-employee/≥10%-of-total threshold; non-EEA regions (Europe outside the EEA, Asia, Middle East & Africa) fall in the 0-19% band in both years.

"There is no agreement with our employees regarding representation by a European Works Council, a Works Council of a Societas Europaea (SE) or a Works Council of a Societas Cooperativa Europaea (SCE)."

Adequate wages

Reference: page 159.

"As in the previous year, all our employees receive appropriate compensation in line with applicable benchmarks." Benchmarks are based either on statutory minimum wages or a share of the average wage per country. Trainees and apprentices are excluded from the review, consistent with the ESRS methodology, given their separate legal employment status in most countries.

Remuneration packages combine market-oriented base salaries with performance-based variable pay and benefits (health/fitness offers, discounts, job-bike leasing); most "blue collar" employees are additionally covered by collective bargaining agreements (see S1-8).

Social protection

Reference: page 153.

"The majority of our employees are covered by public programs or by benefits we offer to protect against loss of earnings due to significant life events such as illness, unemployment, occupational accidents, disability, parental leave or retirement."

In the prior year, different legal conditions limiting such protection applied in Greece, Slovenia, Bulgaria, Egypt and the United Arab Emirates (plus Chinese apprentices/trainees excluded from public programmes). In the reporting year, only South Africa, Egypt, Russia and the United Arab Emirates had such limiting conditions – a narrower list than the prior year.

Training and skills development metrics

Reference: page 155 (tables T.64, T.65).

Performance-appraisal participation rate by gender (2025 / 2024): male 89% / 69%; female 88% / 72%. (Calculation assumes at most one appraisal per employee per year.)

Average training hours per employee by gender (2025 / 2024): male 27.15 / 21.26 hours; female 11.81 / 12.11 hours.

Training is split between internal offerings (e-learning, DMG MORI Academy) and external offerings (soft-skills training, seminars), alongside legally mandated training such as occupational safety.

Health and safety metrics

Reference: pages 151-152.

The occupational health and safety management system covers 100% of the workforce, unchanged from the prior year.

Fatalities: none in the reporting year or the previous year.

Recordable work-related injuries: 100 incidents (previous year: 120), a rate of 8.3 cases per million hours worked (previous year: 10).

Recordable work-related ill health: none in either year.

Days lost to work-related injury/illness: 3,089 days (previous year: 2,980 days) – days lost rose even as incident count and rate both fell, reflecting either more severe individual cases or longer recovery periods; the report does not further decompose this.

Incidents, complaints and severe human rights impacts

Reference: page 158.

"In the reporting year, as in the previous year, there were no serious incidents relating to human rights in connection with our employees. Accordingly, no fines, sanctions or compensation payments were due for DMG MORI AG in this context in the reporting period." The GOV-5 internal control process was applied to this KPI, with no material assumptions made in its calculation.

Policies related to value chain workers

Reference: pages 165-166.

Value-chain human-rights and environmental due diligence is governed by the internal "Guideline for Respecting Human Rights and Labor Practices" (also cited under E1-2), applying "to our own business processes as well as the entire supply chain." It is underpinned by the "Declaration of Principles on Respect for Human Rights and the Environment" under Section 6(2) of the German Supply Chain Act, confirmed annually, explicitly addressing human trafficking, forced labour and child labour, and referencing ILO core labour standards.

The Code of Conduct is "an integral and binding part of the business relationship with our direct suppliers," who are expected to pass its requirements down their own supply chains. Active-inclusion mechanisms feed into the remediation process described under S2-3, and serious incidents are tracked under S2-4.

Processes for engaging with value chain workers about impacts

Reference: page 163.

For the materiality analysis, upstream value-chain workers were represented via central purchasing employees acting as credible proxies; the company considers this "appropriate in terms of effort and efficiency" for the current cycle, with more effective (direct) methods requiring greater effort, and intends to keep using proxies in future annual cycles.

"DMG MORI AG does not have an overarching process for actively involving workers in the value chain as defined by the ESRS to manage actual and potential impacts. Accordingly, no further information on the process can be provided." Effectiveness review of related measures sits with the purchasing department (see S2-4).

Processes to remediate negative impacts and channels for value chain workers to raise concerns

Reference: pages 164-165.

DMG MORI AG operates a four-level escalation model for direct suppliers under the German Supply Chain Act: (1) a deadline to comply with human-rights/environmental obligations; (2) a concept for minimisation with a concrete timetable if the supplier cannot promptly remedy; (3) temporary suspension of the business relationship if non-compliance persists; (4) termination of the relationship for very serious, unresolved breaches, decided jointly by the Chief Compliance Officer and Chief Purchasing Officer.

For indirect suppliers, action requires "substantiated knowledge" of a possible violation, triggering a Human Rights Impact Assessment and measures such as control requirements, targeted supplier support, or industry-wide initiatives. "DMG MORI AG does not currently record the extent to which employees in the value chain are actually aware of, evaluate, and use" the available reporting channels, though the whistleblower system is open to all value-chain employees at any time.

Taking action on material impacts on value chain workers

Reference: pages 166-167.

Prevention measures for direct suppliers include webinars, training courses and audits, applied "as and when required." Decisions on supplier boycott status turn on DMG MORI AG's ability to influence the supplier and its own contribution to causation: large, powerful suppliers are generally assumed to have their own compliant processes; less powerful suppliers require a sustainability audit, and non-strategic suppliers that cannot be audited have the relationship terminated.

Digital tools support this: the "Integrity Next" questionnaire platform assesses supplier sustainability performance at the procurement stage, and "RISKMETHODS" provides an early-warning system covering creditworthiness, delivery performance and labour/human-rights risk.

"We are not aware of any serious human rights issues or incidents within our value chain at the end of the reporting year, as was the case in the previous year," a position covering the downstream value chain too (addressed further under S4).

Targets related to value-chain workers

Reference: page 168.

"For the reporting year, DMG MORI AG has not set itself any targets for the negative impacts mentioned... The reason for this is that we initially focused on further developing the processes for collecting quantitative data introduced in financial year 2024."

The stated guiding principle instead is that "all material risks will be eliminated following a detailed review and close exchange with our partners" and the remedial measures under S2-3/S2-4. Risks flagged by the Integrity Next platform "are usually primarily due to formal errors, such as failing to answer a question," rather than substantive violations.

Policies related to consumers and end-users

Reference: pages 170-171.

Product safety follows the German Product Safety Act and EU directives: the Machinery Directive 2006/42/EC (no hazard in intended use, identified residual hazards, state of the art), the Low Voltage Directive 2014/35/EU and the Electromagnetic Compatibility Directive 2014/30/EU. Risk assessments weigh hazard severity against probability before protection concepts are implemented and systematically checked before delivery; ultimate responsibility sits with the Executive Board.

The Code of Conduct extends to customers and end users as part of the "integrated responsibility approach"; DMG MORI AG reports no cases of non-compliance with these guidelines among end users in the reporting year.

Processes for engaging with consumers and end-users about impacts

Reference: page 169.

For the materiality analysis, end users were represented via Business Development department employees acting as credible proxies, a method considered "appropriate in terms of effort and efficiency for the first reporting year," with proxies to be used again in future annual cycles; operational responsibility sits with the "Sustainability & Business Development" team.

"DMG MORI AG does not have an overarching process for actively involving end users as defined by the ESRS to manage actual and potential impacts," though close customer contact through customised-solution development is cited as an informal substitute.

Processes to remediate negative impacts and channels for consumers and end-users to raise concerns

Reference: page 169.

"In the reporting year, the materiality analysis did not identify any material negative impacts for end users, and accordingly there are no procedures for remediation or corrective action." End users can nonetheless use the central complaints procedure to raise needs or concerns, and the after-sales service function is described as "an integral part of the contact with our customers."

Taking action on material impacts on consumers and end-users

Reference: page 171.

Measures focus on reducing residual risk in machine operation: ongoing revision of risk assessments, R&D specialists active in ISO/IEC standards committees and trade associations, with results fed directly back into risk assessments and continuously checked for effectiveness in day-to-day operations. Customers and end users can also participate directly in the relevant standards working groups.

"No further operational measures or financial resources are planned" beyond this for the reporting year, as focus stayed on quantitative-process development. "We are not aware of any serious problems or incidents relating to human rights in connection with our end users in the reporting year, nor were there any reports via the complaints procedure."

Targets related to consumers and end-users

Reference: pages 171-172.

"For the reporting year, DMG MORI AG has not set any targets with regard to the risk mentioned... The reason for this is that we initially focused on further developing the processes for collecting quantitative data introduced in financial year 2024."

The company nonetheless states a standing ambition: "to always ensure the health and safety of end users by minimizing the risks described above."

Business conduct policies and corporate culture

Reference: pages 172-173, 174-175, 177-178.

Governance (page 172): the Executive Board and Supervisory Board are responsible for compliance and for a corporate culture grounded in the Code of Conduct.

Whistleblower protection (page 172-173): the "Rules of Procedure for the Complaints Procedure" underpins the whistleblower system, meeting German Supply Chain Act Section 8 and Whistleblower Protection Act requirements. A 24/7 global compliance helpline (phone, online, multilingual, anonymous option) is available to all stakeholders, plus the Responsibility Helpdesk (responsibility@dmgmori.com). The Chief Compliance Officer investigates reports, aims to give feedback within three months, and whistleblowers are protected from retaliation.

Suppliers (page 174-175): the Purchasing guideline sets purchasing-department competencies, relationships with other departments and the rules every employee must follow, approved and supported by the Executive Board.

Corruption and bribery (page 177-178): corruption is defined with reference to Sections 298, 299 and 331-338 StGB and equivalent foreign law, plus wilful damage offences (theft, fraud, breach of trust). The compliance helpline is the main detection channel; investigation committees are formed with independence safeguards, and the Risk and Compliance department briefs the Executive Board and Finance and Audit Committee regularly.

Management of relationships with suppliers

Reference: page 175.

The Purchasing guideline covers "Invoice verification and payment settlement," though "the prevention of late payment, particularly to small and medium-sized enterprises, is not explicitly regulated."

Before onboarding, suppliers must meet baseline human-rights, social-standards and legal requirements, referencing the Code of Conduct's climate, energy, occupational-safety and child/forced-labour provisions. Due-diligence elements comprise: a human-rights principles declaration, risk management and regular risk analyses, a complaints procedure, clearly defined responsibilities, prevention measures in DMG MORI AG's own operations and with direct suppliers, remedial measures, and German Supply Chain Act documentation/reporting.

Prevention and detection of corruption and bribery

Reference: pages 178-180 (table T.76).

Prevention centres on awareness and regular training, reviewed annually by the Risk and Compliance department, via two pillars: (1) managing directors and staff in "functions-at-risk" (Purchasing, Finance, Controlling, Distribution) receive in-person compliance-management-system training at least every five years; (2) all employees complete an e-learning course on the Code of Conduct and compliance basics every three years.

Training coverage (table T.76, 2025 / 2024): employees in functions-at-risk, 128 / 127; with training access, 128 / 127; that completed training, 117 / 109; coverage rate, 91% / 86%.

Detection runs through the compliance helpline and lawyer-of-trust channel, with independent investigation committees and sanctions applied under applicable law.

Targets related to business conduct

This is the 2025/2026 ESRS standalone G1-3 Targets requirement; under the 2023 ESRS the report was prepared against, the equivalent content sits under MDR-T across the G1 material matters (pages 174, 175, 178).

DMG MORI AG does not set quantitative, results-oriented targets for any of its three G1 material matters (whistleblower protection, supplier relationships, corruption and bribery), instead tracking effectiveness through processes: for whistleblowers, "we do not consider measurable and results-oriented targets... to be appropriate or helpful" but the Risk and Compliance department has "the clear objective of following up every report comprehensively"; for suppliers, the goal is framed through the Science Based Targets-linked CO2 engagement described under E1-1; for corruption and bribery, effectiveness is tracked via the training-coverage metrics in table T.76 (91% coverage of functions-at-risk in 2025) rather than a stated numeric target.

Incidents of corruption or bribery

Reference: page 180.

"In the reporting year, there were no confirmed cases of corruption or bribery at DMG MORI AG that led to convictions. DMG MORI AG did not have to pay any fines or take any measures in this regard."

"As in the previous year, no penalties were imposed on DMG MORI AG or its employees for bribery due to violations of anti-corruption regulations. No significant fines had to be paid for non-compliance with laws and regulations in the areas of economics, the environment, and social affairs, or in connection with environmental aspects."

This topic was newly assessed as material for financial year 2025 (IRO-2, page 119: "the topic 'G1-4 cases of corruption or bribery' was assessed as material" for the first time).

Payment practices

Reference: page 176.

Average payment period: approximately 34 days (previous year: approximately 29 days), measured from invoice date to accounting settlement date, using a sample weighted toward suppliers with sporadic transactions outside large global corporations (to surface any SME payment delay).

European suppliers accounted for ~96% of invoice volume (both years); of that, 90 days net applied to ~17% (previous year 18%) and 30 days net to ~15% (previous year 13%), with other terms (e.g. 60 days net) making up the remainder (~10% both years). Asian suppliers, the remaining volume, typically received 60 days net on ~75% of volume (previous year 65%).

Contractual counterparties include DMG MORI Additive GmbH, DMG MORI Bergamo S.r.l., DMG MORI Bielefeld GmbH, DMG MORI Manufacturing Solutions Co., Ltd. (Pinghu), DMG MORI Pfronten GmbH, DMG MORI Seebach GmbH, DMG MORI Poland Sp. z o.o., DMG MORI Spare Parts GmbH, DMG MORI Tortona S.r.l. and DMG MORI Ultrasonic Lasertec GmbH. "As in the previous year, DMG MORI AG had no pending legal proceedings for late payment as of the reporting date."