ESI 3-Year Strategic Plan “OneESI 2024 – Focus to Grow”
05 Ottobre 2021 - 08:00AM
Business Wire
3-year plan expected to drive a high
single digit growth and an adjusted EBIT to exceed 20%
Regulatory News:
ESI Group (ISIN Code: FR0004110310, Symbol: ESI) announces
its 3-year strategic plan focused on improving ESI Group’s topline
and profitability. This plan will be presented and commented on
Tuesday, October 5th, at 3:30pm CET during an Investor
Conference.
Cristel du Rouvray, Chief Executive Officer of ESI Group
says: "This 3-year plan will enable us to focus where we
deliver the most value and therefore drive growth and profit for
ESI that benefits all our stakeholders. This plan is an important
milestone for our company, and it mobilizes the talent and energy
of my entire team. I am very proud to lead a diverse team and I’m
really confident that together we can achieve the expected
result.”
ESI’s performance is a paradox: ESI is a key technology provider
operating in a vibrant market and yet profit and growth are far
below comparable and stakeholder expectations. ESI’s management
believes that to unleash its potential:
- ESI must focus on its core business to invest to win in key
simulation markets;
- ESI must globalize its distribution to serve global customers,
including a globally coordinated value packaging & pricing
strategy.
The Group spent the past 7 months developing this “OneESI 2024 -
Focus to Grow” plan to focus on the core business and globalize
operations; in recent months, management spent time explaining to
an extended team of key leaders the necessity and the credibility
of this plan. ESI is now entering the next phase of communicating
more broadly and executing on all facets of this
transformation.
Financial ambitions for 2024
To increase its competitiveness, ESI must focus to grow. The
Group has already made significant progress in this direction, as
communicated during its H1-FY21 results, thanks to its healthy run
rate initiative, the group posted both a growth in revenue and an
improvement in profitability, and in tandem a sustained reduction
in headcount and costs in the past year. The Group expects to
continue with this trajectory, estimating a further reduction in
headcount of approximately 5% by Dec 2022 and then a stabilization
of headcount. This reorganization will be implemented in the
various regions of the Group in accordance with the legal rules
applicable to each of them.
Accelerating in this direction, the Group announces its 2024
financial objectives. With its plan “OneESI 2024 – Focus to grow”,
ESI aims to reach:
- A high single digit growth
- an adjusted EBIT to exceed 20%
At constant exchange
rate
2022
2023
2024
Revenue (adjusted for special
projects1)
4% - 6%
6% - 8%
7% - 9%
Adjusted EBIT2
10% - 12%
15% - 17%
20% - 22%
To achieve this plan, ESI counts on its key levers:
- a confirmed opportunity in a growing and vibrant simulation
market
- a renewed operating model
- a best-in-class governance
- committed teams
By building off its accelerators, the management ambitions a
higher growth beyond this 3-year horizon.
More details
To present its “OneESI 2024 – Focus to grow” plan, ESI is
organizing an Investor Conference which will be held on Tuesday,
October 5th, 2021 at 3:30pm CET. To access it, click HERE.
Upcoming events
- Q3 revenues – October 28th, 2021
- FY21 sales and results - February 28th,
2022
Forward-looking Statements
This release contains
“forward-looking statements”. These statements are subject to a
number of risks and uncertainties, including those related to the
COVID-19 virus and associated further economic and market
disruptions; further adverse changes or fluctuations in the global
economy; further adverse fluctuations in our industry, foreign
exchange fluctuations, changes in the current global trade
regulatory environment; fluctuations in customer demands and
markets; fluctuations in demand for our products including orders
from our large customers; cyber-attacks; expense overruns; and
adverse effects of price changes or effective tax rates. The
company directs readers to its Universal Registration Document –
Chapter 3 presenting the risks associated with the company’s future
performance.
About ESI Group
Founded in 1973, ESI Group envisions a world where Industry
commits to bold outcomes, addressing high stakes concerns -
environmental impact, safety & comfort for consumers and
workers, adaptable and sustainable business models. ESI provides
reliable and customized solutions anchored on predictive physics
modeling and virtual prototyping expertise to allow industries to
make the right decisions at the right time, while managing their
complexity. Acting principally in automotive & land
transportation, aerospace, defense & naval, energy and heavy
industry, ESI is present in more than 20 countries, employs 1200
people around the world and reported 2020 sales of €132.6 million.
ESI is headquartered in France and is listed on compartment B of
Euronext Paris.
For further information, go to www.esi-group.com.
Follow ESI
http://www.esi-group.com/linkedin
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http://www.esi-group.com/youtube
_______________________ 1 For the 3-year plan, the growth of
revenue excludes special projects 2 Operational income – our EBIT –
is adjusted for IFRS standard on leases, amortization of intangible
assets related to acquisitions, stock-based compensation expense
and restructuring charges
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version on businesswire.com: https://www.businesswire.com/news/home/20211004005933/en/
ESI Group Florence Barré investors@esi-group.com +33 1 49
78 28 28
Verbatee - Press & Shareholder Relations Jérôme
Goaer, j.goaer@verbatee.com, +33 6 61 61 79 34 Aline Besselièvre,
a.besselievre@verbatee.com, +33 6 61 85 10 05
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