On this basis and against the backdrop of the low interest rate environment and changed political conditions, the Management Board recommends that the Supervisory Board propose to the Annual General Meeting on July 4, 2018 the distribution of an unchanged basic dividend of EUR 0.80 per ordinary share and EUR 0.85 per preference share as well as an unchanged bonus of EUR 12.00 per share plus a one-off additional bonus of EUR 2.20 per share. This would increase the distribution per preference share to EUR 15.05 (previous year: EUR 12.85).

Demand for Hermle machining centers and automation solutions developed very dynamically in 2017 after a slow start to the year, meaning that the company's capacities were heavily utilized. Digitalization modules that enable the development of Industry 4.0 production with Hermle machines and services in the field of additive manufacturing were also in high demand. Order intake across the Group increased significantly in the reporting period to around € 433 million (previous year: € 364.5 million). More new orders were received from both Germany and abroad. At the end of the year, the Hermle Group's order backlog had risen by around a third to approximately 125 million euros (previous year: 93.8 million euros).

The high capacity utilization and the scheduled implementation of the two future projects - the expansion of a production area at the company headquarters during ongoing operations and the construction of a new site in the neighboring district of Rottweil - placed high demands on the employees. In recognition of their good performance, the employees of Hermle AG are to receive a bonus of € 4,500 per employee following the dividend payment. On December 31, 2017, Hermle employed 1,086 people across the Group (previous year: 1,018).

In light of the growing demand for automation solutions, Maschinenfabrik Berthold Hermle AG acquired the remaining 51 % of the shares in Hermle-Leibinger Systemtechnik (HLS) GmbH, Gosheim, from the previous co-shareholders with retroactive effect from January 1, 2018. As a result, HLS, in which Hermle previously held a 49% stake, will be fully consolidated within the Hermle Group from 2018, although this will not have a significant impact on its sales and operating earnings performance. HLS specializes in individual automation solutions based on Hermle machines and components and employed 85 people at the end of the past financial year. The complete takeover will enable Hermle to operate more flexibly in this area and will further expand its range of configurable automation solutions. There will be no changes for customers.

Hermle will publish detailed figures for the 2017 financial year and a forecast for 2018 at the end of April 2018. am