PSI Software AG PSI Continues Strong Sales and EBIT

TIDM0KUR

PSI Software AG

29 October 2021

 
PSI Software AG / Key word(s): Quarter Results/Quarterly / Interim Statement 
 PSI Continues Strong Sales and EBIT Trend in Third Quarter 
 
 29.10.2021 / 09:07 
 The issuer is solely responsible for the content of this announcement. 
 
 PSI Continues Strong Sales and EBIT Trend in Third Quarter 
 - New orders increased by 10.1% to 196 million euros 
 - Sales growth of 12.3% to 177.6 million euros 
 - EBIT leaps by 77% to 15.7 million eurosKPIs (TEUR)                1 Jan. - 30 Sept. 2021  1 Jan. - 30 Sept. 2020   Change 
 Sales                                     177,569                 158,139  +12.3 % 
 EBIT                                       15,710                   8,874  +77.0 % 
 Group net result                           11,096                   5,961  +86.1 % 
 Earnings per share (EUR)                     0.71                    0.38  +86.8 % 
 
 
 Berlin, 29 October 2021 - The PSI Group increased its new orders by 10.1% to 196 million 
 euros in the first nine months of 2021 (30 Sept. 2020: 178 million euros). The order backlog 
 on 30 September 2021 was, at 165 million euros, 3.8% above the level of the previous year 
 (30 Sept. 2020: 159 million euros). Group sales improved by 12.3% to 177.6 million euros (30 
 Sept. 2020: 158.1 million euros), whereby along with Energy, Production also contributed to 
 the growth in the third quarter. The EBIT leapt by 77% to 15.7 million euros (30 Sept. 2020: 
 8.9 million euros), the group net result even improved by as much as 86.1% to 11.1 million 
 euros (30 Sept. 2020: 6.0 million euros). 
 
 Energy Management (energy networks, energy trading, public transportation) achieved 15.4% 
 higher sales of 98.1 million euros (30 Sept. 2020: 85.0 million euros) and a 52% higher EBIT 
 of 6.0 million euros (30 Sept. 2020: 4.0 million euros) in the first three quarters. In the 
 electrical grid business, the new Redispatch 2.0 module was delivered to numerous distribution 
 system operators and, consequently, higher sales were attained than in the previous year. 
 Due to the fact that numerous regulatory changes were made just before the start date, further 
 sales are expected during the transition period that lasts until mid-2022. The configuration 
 management of the electrical grid control system should, like the gas control system, be converted 
 to faster upgrade services and the group's standard time-series module should be included. 
 The new, dispatch management for maintenance technicians based on the PSI platform has demonstrated 
 its significantly accelerated customization and automated installation in the cloud in the 
 course of a railway project. PSI will continue to support Germany's largest distribution system 
 operator as a strategic technology supplier in its ambitious digital future strategy. The 
 new control system, which is based on the PSI platform, is being optimized for high performance 
 and high availability in a nationwide distribution grid project. With the conversion to the 
 new control system technology, the future margins of Energy Management should approach those 
 of Production Management, which are twice as high. The gas grid business has an increasing 
 volume of new orders in Germany, while orders from Russia have been postponed to 2022. While 
 the rollout of upgrades for the German gas suppliers continues to be automated, the conversion 
 of the software to the time-series management of the PSI platform is now underway as well. 
 The energy trading business has obtained another major contract including optimization and 
 time-series management since the end of the third quarter. 
 Sales in Production Management (metals, industry, logistics) during the first nine months 
 was, at 79.4 million euros, 8.6% above the value for the previous year (30 Sept. 2020: 73.1 
 million euros). The EBIT for the segment, whose products are already completely based on the 
 PSI platform, increased by 68% to 10.4 million euros (30 Sept. 2020: 6.2 million euros). While 
 the carbon steel industry in Europe is preparing the conversion of its production to hydrogen, 
 the electro-steel plants in North America and Europe as well as the carbon steel plants in 
 Russia and Turkey continue investing in software. The metals business, with its consistent 
 internationalization strategy, continues to reliably generate increasing profit margins, due 
 to the fact that the PSI platform has become ever more successful in allowing local partners 
 to provide customization work and is therefore able to concentrate on licenses, upgrade fees 
 and consulting services. The metals production software has, for the first time, been delivered 
 through the PSI App Store as a simulation package for e-learning trainings. As of 2022, it 
 is planned to deliver real planning systems automated into customers' private clouds as well 
 as public clouds. In a further step, it is planned to offer the complete software systems 
 and upgrades including plant control. The automotive & industry as well as logistics businesses 
 had numerous orders from regular and new customers in both Germany and abroad. Combination 
 orders, where products from several business units were combined on the PSI platform, were 
 especially well-received. Additional orders in the eastern European region could be obtained 
 through the Polish PSI subsidiary. 
 The number of employees in the group increased to 2,186 (30 September 2020: 2,042), in particular 
 due to new hires in Poland, Germany and the USA. Cash flow from operating activities was, 
 at 16.3 million about 23% above the figure for the previous year (30 Sept. 2020: 13.2 million 
 euros). Cash and cash equivalents increased compared to the previous year's figure by 14% 
 to 47.3 million euros (30 Sept. 2020: 41.4 million euros). 
 The multi-cloud PSI App Store is now in productive use for pilot customers. Currently, mainly 
 simulation products and standard components are sold. These can be used both independently 
 as well as combined into industry products. The PSI App Store is intended primarily to accelerate 
 the regular customer business (after sales) with major customers and integration partners 
 as well as automate subsequent purchases and upgrades. 
 As of 2022, PSI will begin reporting repeating license sales from upgrade-as-a-service and 
 software-as-a-service contracts in addition to maintenance and license sales. Initial as well 
 as repeating licenses, which can be delivered automatically and with greater margins through 
 the PSI APP Store, will also be reported in the financial reporting as of 2022. 
 The outbreak of the COVID-19 pandemic in 2020 is still having an impact on new orders in 2021. 
 In view of the reduced uncertainties from the COVID-19 pandemic and an economic recovery, 
 numerous PSI customers have indicated more orders. Unfortunately, not all of the major orders 
 expected in the third quarter have materialized. In particular the major shifts in the raw 
 materials markets as well as supply bottlenecks in certain industries have resulted in postponements 
 of orders. The PSI management board expects the traditional strong final quarter and therefore 
 a clear exceeding of the EBIT target of more than 20 million euros announced in March. For 
 2022, the management expects an especially strong start with additional increases in new orders 
 and results as well as significantly increased sales from the PSI App Store. 
 The PSI Group develops its own software products for optimizing the flow of energy and materials 
 for utilities (energy grids, energy trading, public transport) and industry (metals production, 
 automotive, mechanical engineering, logistics). The industry-specific products, which are 
 built from standard components, are sold both directly and via the multi-cloud PSI App Store 
 and can also be customized by customers and partners themselves. PSI was founded in 1969 and 
 employs nearly 2,200 people worldwide. www.psi.de 
 Contact: 
 PSI Software AG 
 Karsten Pierschke 
 Head of Investor Relations and 
 Corporate Communications 
 Dircksenstraße 42-44 
 10178 Berlin 
 Germany 
 Phone [phone] 
 Fax [phone] 
 E-Mail: [e-mail] 
 
 
 29.10.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group 
 AG. 
 The issuer is solely responsible for the content of this announcement. 
 
 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News 
 and Press Releases. 
 Archive at www.dgap.de 
 
 
Language:      English 
Company:       PSI Software AG 
               Dircksenstraße 42-44 
               10178 Berlin 
               Germany 
Phone:         [phone] 
Fax:           [phone] 
E-mail:        [e-mail] 
Internet:      www.psi.de 
ISIN:          DE000A0Z1JH9 
WKN:           A0Z1JH 
Listed:        Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, 
                Hamburg, Munich, Stuttgart, Tradegate Exchange 
EQS News ID:   1244653 
 
 
 
End of News   DGAP News Service 
 
 
 
 

1244653 29.10.2021

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October 29, 2021 04:00 ET (08:00 GMT)