ESI building a foundation for improved
long-term growth and profitability
- First quarter revenues: +1.2% (+3.7% constant exchange rate
- cer) at €55.5m
- Clear roadmap aligning all Group efforts to accelerate
revenue growth
- Team focused on growing New Business pipeline in
2021
- Committed to continuing to manage costs in 2021
Regulatory News:
ESI Group, Paris, France,
(ISIN Code: FR0004110310, Symbol: ESI), today releases its sales
for the first quarter of 2021 (period from January 1st to March
31st).
Cristel de Rouvray, Chief Executive Officer of ESI Group,
comments: “Q1 2021 confirmed the resiliency of ESI
Group’s business model: our existing customers, and even more so
our top 20 customers have clearly signaled their need for more
virtual prototyping to navigate the global industry crisis and
enable their digital transformation. On this foundation of growing
repeat business, we can drive ambitious efforts to increase new
business for sustainable and profitable revenue growth. I am
committed to lead an energized management team, aligned by industry
and by outcome, to release growing employee, customer and partner
energy.”
Revenues (€m)
Q1-2021
Q1-2020
Change
Change Constant exchange rate
(cer)
Q1 - Licenses
49.6
48.8
+1.6%
+4.2%
Q1 – Services
5.9
6.1
-2.5%
-0.1%
Q1 - Total
55.5
54.9
+1.2%
+3.7%
In the first quarter of its fiscal year (January 1, 2021 - March
31, 2021), ESI recorded revenues of €55.5m, up 1.2% (+3.7% cer);
slightly above the range announced (€52-55m). We saw growth in
revenue in all regions in Q1:
- EMEA by
+1.4% (+1.7% cer) - Asia
by +0.2% (+4.7% cer) -
Americas by +2.4% (+10.9% cer)
Licensing revenue was up +1.6%
(+4.2% cer) with growth in all regions, led by the Americas, up by
3.1% (+11.5% cer). Services revenues were down -2.5% (-0.1% cer),
with EMEA and Americas increasing by 3.5% cer and 3.7% cer
respectively, while Asia decreased by -8.6% cer.
The growth is led by Repeat
Business with an increase of +1.3% (+3.7% cer). Central to ESI’s go
to market strategy, Focus Accounts drove the License performance of
the Group with a +4.7% increase.
Team focused on growing New Business pipeline in 2021
Identified as a key focus for the
Group’s management, the New Business activity amounted to €3.1m
(-€0.2m) in Q1. While down slightly from Q1 2020, this represents
the best year over year result since the start of the pandemic and
gives confidence for a continued recovery along 2021. To accelerate
the pipeline of new business the Group recently aligned all revenue
related activities, under Mike Salari in his new role leading
Revenue Generation. This effort benefits from the global business
tools and methodologies that ESI has deployed over the past 2
years. ESI’s transformed approach by industry and by outcome, to
deliver industry solutions, enables focus and alignment of R&D
and S&M resources for sustained momentum in new business, and
early benefits are visible in the Group’s go-to-market and
marketing activities.
Supporting the industry transformation The Group's four priority focus industries -
Automotive & Ground Transportation, Aeronautics &
Aerospace, Heavy Industry, Energy - accounted for around 91% of
revenues. In Licensing activities, the robustness of the Automotive
was once again proven with an increase of 2.8% for the first
quarter. Main customers of
the Group renewed their collaboration during this quarter which
reinforces the relevance of ESI’s value and solutions.
Collaborating with Honda for
over two decades, and for ten years in manufacturing, ESI is
considered as a key “Assembly” partner helping them to ensure the
link between manufacturing and performance. The Group accompanies
them in several projects from the accurate prediction of vehicle
performance during assembly processes to the validation of their
manufacturing processes resulting to cost reduction and increased
quality. Extending the collaboration year over year, ESI
strengthens and proposes unique solutions to continuously answer to
Honda’s needs and requirements. Lately, the 2 players started
working on Multi-Material Joining & Assembly, a brand-new
industry solution developed by ESI’s team.
Guidance
The Group expects H1 2021
revenue to be in the range of €80.5 million to €82.5 million
compared to €80.8m in H1 2020.
Committed to continuing to manage costs in 2021
Management remains committed
to disciplined expense management, in order to deliver on the
healthy run rate plan and improve its profitability in 2021. In
addition, the leadership team is currently working with the Board
on a longer-term financial plan to deliver industry standard
operating performance for a global software company of its scale.
ESI Group will share a multi-year financial plan at an investor day
in early fall 2021.
General Assembly Meeting information
ESI Group's Annual General
Meeting will be held on Tuesday, June 22, 2021 at 4 pm CET behind
closed doors with no physical attendance due to the pandemic.
Participation and document consulting procedures are detailed in
the notice of meeting will be made available on the company's
website. Shareholders are invited to regularly consult the section
dedicated to the Shareholders' Meeting on the Company's
website: HERE
Group’s new corporate documents available for
shareholders
- 2020 Universal Registration Document – HERE
- Investors’ notebook – HERE
- Group’s Ethics Charter – HERE
Forward-looking Statements This release contains “forward-looking
statements”. The Group expects H1 2021 revenue to be in the range
of €80.5 million to €82.5 million compared to €80.8m in H1 2020.
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.
Upcoming event
- Annual General meeting – June 22, 2021 (4pm CET)
- Half year results – September 7, 2021 (6pm CET)
- Investor day – early Fall 2021 (date to be announced)
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210429005744/en/
ESI - Shareholder Relations Florence Barré investors@esi-group.com +33 1 49 78 28 28
Verbatee - Press & Shareholder Relations JJérôme 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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