RCS - PSI Software AG - PSI adjusts Annual Targets

PSI Software SEAnnouncement

05/10/2022 09:30

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20221004:nRSD7792Ba&default-theme=true

RNS Number : 7792B  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 +49 30 2801-2727

E-Mail: KPierschke@psi.de

 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:        +49 (0)30 2801-0
 Fax:          +49 (0)30 2801-1000
 E-mail:       ir@psi.de
 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

 

This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word “Reach” in the source column of the News Explorer pages of London Stock Exchange’s website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  NRAUSONRUVURRAA