- 2020 shows the resilience of ESI Group's business model:
sales were 132.6 million euros (-8.7% at constant exchange rates –
cer) with a modest decrease of Licenses (-5.1% cer) and a more
significant decrease in Services due to Covid reducing customer
access (-22.3% cer)
- Strong installed base with a stable repeat business
- Confirmation of mission critical activities per
industry
Regulatory News:
ESI Group (Paris:ESI),
Paris, France, (ISIN Code:
FR0004110310, Symbol: ESI), releases its sales for the fourth
quarter of 2020 (period from October 1st to December 31st) and the
full year (period from January 1st to December 31st) approved by
the Board of Directors on February 8th, 2021.
Cristel de Rouvray, Chief
Executive Officer of ESI Group, comments:
“In 2020, in one of the worst
health and economic crises in our lifetimes, ESI demonstrated the
resilience of its business model. ESI provides reliable and
customized solutions anchored on predictive physics to allow
industries to take the right decisions at the right time. We
increased our engagement with customers, limited our revenue
decrease and continued our corporate transformation. It is now
clear that 2021 will be a year of accelerating innovation in the
industries we serve as the Covid crisis demonstrated to all our
customers and prospects the urgency of change, to seek considerable
gains in performance at economic, human and environmental levels.
We will build on our extensive installed base of the world’s
leading innovators while extending the value we deliver to our
customers through outcome solutions. We start 2021 with the
confidence in our repeat business and in our ability to execute on
opportunities to extend our reach.”
Fourth quarter of 2020 confirms positive trend
The resilience of the business
model observed in the first three quarters continued even more
strongly in the fourth quarter of 2020 with sales of 29.9 million
euros, down -7.4% at constant exchange rates. The product mix
shifted in favour of licenses, which now account for 76.9% of sales
compared with 73.0% in Q4 2019, at €23.0 million, a decline of just
-2.3% (compared with -3.9% in Q3, -9.7% in Q2 and -4.8% in
Q1).
In a reversal of the trend
from the 1st three quarters, new businesses remained stable in Q4
(+0.7% YoY at €4m at constant exchange rates).
On a sectoral level, the
aeronautics reversed the trend and grew by 7.7% in Q4, thanks to
consulting, after nine months heavily impacted by the industry
slowdown.
Full year 2020: resiliency and increase in the share of
licenses in sales
In a very difficult global
context that impacted near term investments in industry, ESI Group
has demonstrated the resilience of its business model based on
recurring licenses contracts. While the Licenses revenue decreased
by -5.1% at constant rate (€109.2m), the repeat business remained
stable. The product mix thus shifted in favour of licenses, which
accounted for 82.4% of sales in 2020 compared with 79.3% in the
previous year.
Group’s sales showed a
decrease of perpetual licenses (PUL) versus last year: from 15% of
sales in 2019 to 10.6% in 2020.
Already in a profound
transformation before the pandemic, the automotive industry showed
its commitment to continue adapting and transforming toward
digital, sustainable and efficient. In order to achieve these
highly complex challenges, even while some new projects were
cancelled or paused, the automotive players continued relying on
ESI’s solutions. The automotive and land transportation vertical
showed a decrease of -6.9% in total; -3.8% for the licenses
activity.
The heavy industry sector also
drove the Group’s performance in 2020. For example, in Asia, ESI
initiated a key collaboration with a major Heavy Machinery
equipment player, sponsored by the CEO who highlighted our
solutions as mission-critical for business resiliency.
Globally, the industry mix
evolved in favor of automotive & land transportation and heavy
industry respectively representing 59.2% and 11.1% of total sales.
Aeronautics now represents 10.9% and energy sector:
6.2%.
In 2020, the Top 20 clients
revenue performed better with a 1% increase in licenses and
a -26% decline in consulting
resulting in an overall decline of -6%.These customers, cornerstone
of ESI’s installed base, renewed their confidence in the Group’s
solutions. A significant number of these customers like Gestamp,
Framatome, Farasis or Renault, participated as speakers
during ESI
Live, a digital Global
event organized in November 2020.
Illustrating the continued
support of long-standing customers, Nissan highlighted the
importance of ESI’s contribution for its breakthrough in carbon
fiber parts production for safer and lighter vehicles during a
press conference organized by the OEM, a presentation during ESI
Live, and a press release.
Over the year, sales held up
well at 132.6 million euros, with a decrease of -8.7% at constant
exchange rates and -9.3% at current exchange rates (forex impact of
1 million euros).
Sales (€m)
2020
2019 1
Change
Current rate
Constant rate
Q4 Licenses
23.0
24.2
(4.7)%
(2.3)%
Q4 Services
6.9
8.9
(22.7)%
(21.3)%
Q4 Total
29.9
33.1
(9.6)%
(7.4)%
2020 Licenses
109.2
115.9
(5.8)%
(5.1)%
2020 Services
23.4
30.3
(22.9)%
(22.3)%
2020 Total
132.6
146.2
(9.3)%
(8.7)%
Looking ahead to 2021
2021 remains a year of great
uncertainty linked to the speed of the recovery from the global
pandemic, particularly in terms of the effectiveness of
vaccination. Yet, ESI Group remains confident in the resilience of
its business model. Determined pursuit of the corporate
transformation ensures ESI Group is positioned to seize
opportunities that emerge from the crisis towards an increasingly
digitalised world mindful of its environmental
footprint.
Upcoming events
Annual results 2020 - March 16, 2021 (6pm CET) First quarter
2021 – April 29, 2021 (6pm CET)
About ESI Group Founded in 1973, ESI Group is a leading
innovator in Virtual Prototyping solutions and a global enabler of
industrial transformation. Thanks to the company’s unique know-how
in the physics of materials, it has developed and refined, over the
last 45 years, advanced simulation capabilities. Having identified
gaps in the traditional approach to Product Lifecycle Management
(PLM), ESI has introduced a holistic methodology centered on
industrial productivity and product performance throughout its
entire lifecycle, i.e. Product Performance Lifecycle™, from
engineering to manufacturing and in operation. Present in more than
20 countries, and in major industrial sectors, ESI employs 1200
high level specialists 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.
1 Year of change of closing date, 2019 accounted for 11 months
(February 1, 2019 to December 31, 2019) of fiscal year. The 2019
data presented in the document refer to a comparable fiscal year of
12 months (January 1, 2019 - January 31, 2019) and correspond to
the items published by the company during the above-mentioned
fiscal year.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210209005929/en/
ESI - Shareholder Relations 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
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