RCS - PSI Software AG - PSI with strong industrial business in 2022

PSI Software SEAnnouncement

29/03/2023 09:15

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RNS Number : 6011U  PSI Software AG  29 March 2023

 PSI Software AG / Key word(s): Annual Results/Annual Report

PSI with strong industrial business in 2022

29.03.2023 / 08:47 CET/CEST

The issuer is solely responsible for the content of this announcement.

 PSI with strong industrial business in 2022

- Sales roughly constant at 247.9 million euros

- EBIT as announced at 20.2 million euros

- PSI App Store sales reaches 7.5 million euros

Performance indicators (KEUR)  1 Jan. - Dec. 31, 2022  1 Jan. - Dec. 31, 2021 (adjusted)  Change
 Sales                          247,938                 245,493                            +1.0%
 EBIT                           20,186                  24,995                             −19.1%
 Group net result               9,694                   15,837                             −38.8%
 Earnings per share (EUR)       0.62                    1.01                               −38.6%

Berlin, March 29, 2023 - The PSI Group achieved stable sales of 247.9 million
 euros in fiscal year 2022 (Dec. 31, 2021, adjusted: 245.5 million euros). Due
 to significant project overruns in the business with municipal utilities, the
 operating result (EBIT) of 20.2 million euros was 19% below the previous
 year's value (Dec. 31, 2021, adjusted: 25.0 million euros), the consolidated
 result decreased even more to 9.7 million euros (Dec. 31, 2021: 15.8 million
 euros) due to the withdrawal from Russia. High gas prices over the course of
 the year led to weak orders in the business with gas importers and municipal
 utilities, with the result that new orders were 4.9% down year-on-year at 253
 million euros (Dec. 31, 2021: 266 million euros).

 The Energy Management segment (energy grids, energy trading, public transport)
 achieved 5.6% lower sales of 130.4 million euros (Dec. 31, 2021, adjusted:
 138.1 million euros) and a significantly lower operating result of 1.4 million
 euros (Dec. 31, 2021, adjusted 9.7 million euros). New orders, sales and in
 particular the segment's earnings were impacted by weak municipal utility
 projects (7% of PSI sales). In addition, there were losses from over one
 hundred regulatory changes for the Redispatch 2.0 software, which helps
 municipal utilities and distribution system operators intelligently distribute
 renewable energy in their own grids and relieve the transmission grids.
 Business with distribution and transmission networks as well as industrial
 networks remained stable in real terms (30% of PSI sales). In order to focus
 the market-leading product PSIcontrol on more efficient customer customization
 and higher volumes, PSI management tripled product development capacity to 125
 employees. In addition, the new partner-capable control system PSIscada, which
 was developed on the PSI platform, passed an important load test in 2022 for
 the management of a nationwide gas network. It will gradually take over more
 functional areas in combination with PSIcontrol. PSI also continued to enjoy
 high demand for software for electric bus depots.

 Sales in the Production Management segment (metals, industry, logistics) grew
 by 9.4% to 117.5 million euros (Dec. 31, 2021, adjusted: 107.4 million euros).
 The segment's operating profit increased by 23% to 20.2 million euros (Dec.
 31, 2021 adjusted: 16.4 million euros). In particular, the North American
 business with customers in the metals producing industry continues to develop
 very strongly. After 2.5 million euros in precautionary provisions due to the
 payment behavior of Chinese customers, PSI will limit itself even more to
 reliable regular customers and partners. The strong demand can be increasingly
 better served worldwide thanks to the PSI platform, as customers and partners
 increasingly take over order processing and independently carry out rollouts
 with workflow, PSI Click Design and e-learning in the PSI Virtual Factory and
 adapt the software to plant-specific features.

With the decision to sell the Russian subsidiaries in the 4(th) quarter, the
 Russian subsidiaries were classified as a business held for sale. This
 resulted in an earnings effect of -7.1 million euros (previous year: -1.7
 million euros).

The number of employees in the Group was increased to 2,251 (Dec. 31, 2021:
 2,223) due to new hires in Poland and the USA despite the departures in
 Russia. At 3.4 million euros, cash flow from operating activities was
 significantly lower than in the previous year (Dec. 31, 2021: 38.8 million
 euros), due to the lower consolidated net profit and the resumption of
 liabilities from vacation accruals and sales tax after the pandemic year. Cash
 and cash equivalents decreased to 45.4 million euros (Dec. 31, 2021: 67.5
 million euros) also due to the dividend payment and the share buyback.
 Although only five product lines were available in the cloud-based PSI App
 Store during the course of the year, licenses and accompanying services were
 already ordered for 7.5 million euros, in some cases with seven-digit order
 sums. Further partnerships with international resellers and integrators have
 been agreed, including Accenture and Tata Consulting. PSI will further expand
 its business with Group rollouts and integration partners in 2023. The share
 of fixed price business, which is subject to inflation and fulfillment risks,
 was further reduced to now 29%. The annually recurring maintenance and upgrade
 fees were further increased to 97 million euros.

 PSI expects a recovery in the Energy Management segment, a continuation of
 growth in Production Management and a significant increase in App Store sales
 in 2023. Without taking into account a possible worsening of the geopolitical
 situation, the management is planning increases in new orders and sales of up
 to 10% and the operating result of around 20% to 25 million euros for 2023.
 The strategic developments (cloud-based App Store and Collaboration Space)
 will be continued as planned, so that the PSI Executive Board continues to aim
 for the long-term target of 54 million euros EBIT for 2026.

 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 cloud-based PSI App
 Store and can also be customized by customers and partners themselves. PSI was
 founded in 1969 and employs more than 2,200 people worldwide. www.psi.de
 (http://www.psi.de)

 Contact:

PSI Software AG

Karsten Pierschke

Head of Investor Relations and Corporate Communication

Dircksenstraße 42-44

10178 Berlin

Germany

Tel. +49 30 2801-2727

Email: KPierschke@psi.de

 29.03.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News
 - a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
 Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com (www.eqs-news.com)

Berlin, March 29, 2023 - The PSI Group achieved stable sales of 247.9 million
euros in fiscal year 2022 (Dec. 31, 2021, adjusted: 245.5 million euros). Due
to significant project overruns in the business with municipal utilities, the
operating result (EBIT) of 20.2 million euros was 19% below the previous
year's value (Dec. 31, 2021, adjusted: 25.0 million euros), the consolidated
result decreased even more to 9.7 million euros (Dec. 31, 2021: 15.8 million
euros) due to the withdrawal from Russia. High gas prices over the course of
the year led to weak orders in the business with gas importers and municipal
utilities, with the result that new orders were 4.9% down year-on-year at 253
million euros (Dec. 31, 2021: 266 million euros).

The Energy Management segment (energy grids, energy trading, public transport)
achieved 5.6% lower sales of 130.4 million euros (Dec. 31, 2021, adjusted:
138.1 million euros) and a significantly lower operating result of 1.4 million
euros (Dec. 31, 2021, adjusted 9.7 million euros). New orders, sales and in
particular the segment's earnings were impacted by weak municipal utility
projects (7% of PSI sales). In addition, there were losses from over one
hundred regulatory changes for the Redispatch 2.0 software, which helps
municipal utilities and distribution system operators intelligently distribute
renewable energy in their own grids and relieve the transmission grids.
Business with distribution and transmission networks as well as industrial
networks remained stable in real terms (30% of PSI sales). In order to focus
the market-leading product PSIcontrol on more efficient customer customization
and higher volumes, PSI management tripled product development capacity to 125
employees. In addition, the new partner-capable control system PSIscada, which
was developed on the PSI platform, passed an important load test in 2022 for
the management of a nationwide gas network. It will gradually take over more
functional areas in combination with PSIcontrol. PSI also continued to enjoy
high demand for software for electric bus depots.

Sales in the Production Management segment (metals, industry, logistics) grew
by 9.4% to 117.5 million euros (Dec. 31, 2021, adjusted: 107.4 million euros).
The segment's operating profit increased by 23% to 20.2 million euros (Dec.
31, 2021 adjusted: 16.4 million euros). In particular, the North American
business with customers in the metals producing industry continues to develop
very strongly. After 2.5 million euros in precautionary provisions due to the
payment behavior of Chinese customers, PSI will limit itself even more to
reliable regular customers and partners. The strong demand can be increasingly
better served worldwide thanks to the PSI platform, as customers and partners
increasingly take over order processing and independently carry out rollouts
with workflow, PSI Click Design and e-learning in the PSI Virtual Factory and
adapt the software to plant-specific features.

With the decision to sell the Russian subsidiaries in the 4(th) quarter, the
Russian subsidiaries were classified as a business held for sale. This
resulted in an earnings effect of -7.1 million euros (previous year: -1.7
million euros).

The number of employees in the Group was increased to 2,251 (Dec. 31, 2021:
2,223) due to new hires in Poland and the USA despite the departures in
Russia. At 3.4 million euros, cash flow from operating activities was
significantly lower than in the previous year (Dec. 31, 2021: 38.8 million
euros), due to the lower consolidated net profit and the resumption of
liabilities from vacation accruals and sales tax after the pandemic year. Cash
and cash equivalents decreased to 45.4 million euros (Dec. 31, 2021: 67.5
million euros) also due to the dividend payment and the share buyback.
Although only five product lines were available in the cloud-based PSI App
Store during the course of the year, licenses and accompanying services were
already ordered for 7.5 million euros, in some cases with seven-digit order
sums. Further partnerships with international resellers and integrators have
been agreed, including Accenture and Tata Consulting. PSI will further expand
its business with Group rollouts and integration partners in 2023. The share
of fixed price business, which is subject to inflation and fulfillment risks,
was further reduced to now 29%. The annually recurring maintenance and upgrade
fees were further increased to 97 million euros.

PSI expects a recovery in the Energy Management segment, a continuation of
growth in Production Management and a significant increase in App Store sales
in 2023. Without taking into account a possible worsening of the geopolitical
situation, the management is planning increases in new orders and sales of up
to 10% and the operating result of around 20% to 25 million euros for 2023.
The strategic developments (cloud-based App Store and Collaboration Space)
will be continued as planned, so that the PSI Executive Board continues to aim
for the long-term target of 54 million euros EBIT for 2026.

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 cloud-based PSI App
Store and can also be customized by customers and partners themselves. PSI was
founded in 1969 and employs more than 2,200 people worldwide. www.psi.de
(http://www.psi.de)

Contact:

PSI Software AG

Karsten Pierschke

Head of Investor Relations and Corporate Communication

Dircksenstraße 42-44

10178 Berlin

Germany

Tel. +49 30 2801-2727

Email: KPierschke@psi.de

 

 

29.03.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News
- a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com (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 (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:  1594991

 

 

 End of News  EQS News Service

1594991  29.03.2023 CET/CEST

 

 

 

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