Notice Regarding Issuance of the 6th Unsecured Perpetual Bonds with Subordinated Terms for Replacement of Existing Hybrid Finance

Overview of Capital Policy

DMG MORI CO., LTD. has decided to issue the 6th unsecured perpetual bonds with subordinated terms as a replacement for the existing hybrid finance. The procurement methods include public offerings of unsecured perpetual bonds and term subordinated loans, with the maximum hybrid finance procurement capped at 30 billion yen. The 6th unsecured perpetual bonds do not include conversion rights to common stock, thus there is no dilution of shares. Additionally, credit rating agencies are expected to recognize this capital instrument as having equal or greater capital quality compared to the existing hybrid finance.

Impact on Shareholders and Future Outlook

These subordinated bonds have no fixed maturity and may be optionally redeemed on interest payment dates after five years from the issuance date, allowing for fund procurement while maintaining capital stability. Under similar conditions to the existing 4th unsecured perpetual bonds (30 billion yen), the replacement will not cause share dilution, and the impact on shareholder value is considered limited. The lead managing securities firms are Mizuho Securities, Nomura Securities, and SMBC Nikko Securities.