PSI Software AG PSI adjusts Annual Targets

TIDM0KUR

PSI Software AG

04 October 2022

 
                   PSI Software AG / Key word(s): Change in Forecast/Results Forecast 
         PSI adjusts Annual Targets due to Business Performance in the Electrical Grids business 
 
                                       04-Oct-2022 / 17:41 CET/CEST 
      Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, 
                             transmitted by EQS - a service of EQS Group AG. 
                  The issuer is solely responsible for the content of this announcement. 
 
         PSI adjusts Annual Targets due to Business Performance in the Electrical Grids business 
        Berlin, October 4, 2022 - The Executive Board of PSI Software AG has decided to adjust the 
       annual target for the operating result from continuing operations (EBIT) to 20 million euros 
      due to the course of business in the Municipal Utilities business (current consensus estimate: 
        25.1 million euros). The Municipal Utilities business, which generates around 5% of Group 
      sales, was exposed to further cyclical declines in customer investments in the third quarter. 
        Losses from a newly developed Redispatch 2.0 software were already recorded in the second 
     quarter. This software helps distribution system operators and municipal utilities in particular 
       to play a greater role than before in the integration of renewable energy through balancing 
       measures and to relieve the transmission grids. In parallel with the development process of 
      the software, the regulatory basis for Redispatch 2.0 was changed many times by the regulation 
        authorities and the BDEW association, and the technical requirements were tripled in total 
        as a result. Compensation payments for these additional services caused by regulation are 
          being clarified, but clarification is expected to continue beyond the end of the year. 
    Against this background, the PSI Executive Board has decided to adjust the allocation of employees 
     in the PSI Group and to implement organizational measures to bundle sales and project execution 
       in the municipal utilities market segment under an experienced management team. In order to 
        deliver future projects in a more product-oriented and automated manner, development will 
       also be bundled and the division's development budget increased from 4 million to 10 million 
                                                  euros. 
       The other business units of the Energy Management Segment (gas grids, energy trading, public 
        transport) are developing as planned. As expected, the Production Management segment will 
     increase order intake and sales by 15% and earnings by 10% in 2022. The North American business 
       in particular continues to develop very strongly. In total, new orders and sales of the PSI 
     Group are expected to be slightly above the previous year, as already forecast in the half-year 
    report. For the operating result (EBIT) from continuing operations (without Russia) the management 
                                      now expects 20 million euros. 
      For 2023, the PSI Executive Board plans a return to the long-term growth and earnings increase 
 trend. The strategic developments (PSI App Store/cloud platform) are not affected by the aforementioned 
        problems, so that the PSI Executive Board continues to aim for the long-term target of 54 
              million euros EBIT for 2026, irrespective of short-term economic fluctuations. 
                                                 Contact: 
                                             PSI Software AG 
                                            Karsten Pierschke 
                         Head of Investor Relations and Corporate Communications 
                                        Dircksenstraße 42-44 
                                               10178 Berlin 
                                                 Germany 
                                          Phone [phone] 
                                        E-Mail: [e-mail] 
 
 
                                        End of Inside Information 
 
                     Information and Explanation of the Issuer to this announcement: 
 
     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 over 2,200 people worldwide. www.psi.de 
 
 04-Oct-2022 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate 
                                         News and Press Releases. 
                                       Archive at www.eqs-news.com 
 
 
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, Hanover, Munich, Stuttgart, Tradegate Exchange 
EQS News ID:   1456743 
 
 
 
 
 
 
End of Announcement  EQS News Service 
 
 
 
 

1456743 04-Oct-2022 CET/CEST

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October 04, 2022 12:40 ET (16:40 GMT)