RCS - PSI Software AG - PSI with strong industrial business in the 3Q
28/10/2022 09:30
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RNS Number : 4798E PSI Software AG 28 October 2022
PSI Software AG / Key word(s): Quarter Results/Quarterly / Interim Statement
PSI with strong industrial business in the third quarter
28.10.2022 /
The issuer is solely responsible for the content of this announcement.
PSI with strong industrial business in the third quarter
- New orders 4.6 % above previous year at 205 million euros
- Sales increase by 2.5 % to 180 million euros
- EBIT still impacted by municipal utility projects in 3(rd) quarter
KPI (KEUR) 1 Jan. - 30 Sept. 2022 1 Jan. - 30 Sept. 2021 Change
Sales 179,680 175,357 +2.5%
EBIT 14,311 16,445 −13.0%
Group net result 7,973 11,096 −28.1%
Earnings per share (EUR) 0.51 0.71 −28.2%
Berlin, October 28, 2022 - The PSI Group improved sales by 2.5% to 179.7
million euros in the first nine months of 2022 (30 Sept. 2021 adjusted: 175.4
million euros). Due to weak order intake and significant project overruns in
the municipal utilities business, operating earnings (EBIT) were 13% down
year-on-year at 14.3 million euros (30 Sept. 2021 adjusted: 16.4 million
euros), while consolidated net profit decreased accordingly to 8.0 million
euros (30 Sept. 2021: 11.1 million euros). Despite the withdrawal in Russia
and weak orders in the municipal utilities business, new orders at 205 million
euros were 4.6% higher than in the prior-year quarter (30 Sept. 2021: 196
million euros). At 182 million euros, the order book volume on September 30,
2022 exceeded the prior-year figure by 10.3% (Sept. 30, 2021: 165 million
euros).
The Energy Management segment (energy grids, energy trading, public transport)
generated 4.6% lower sales of 92.4 million euros in the first nine months
(Sept. 30, 2021 adjusted: 96.8 million euros) and a significantly lower
operating result of 1 million euros (Sept. 30, 2021 adjusted: 7.3 million
euros). New orders, sales and in particular the segment's earnings were
impacted by weak demand and cost overruns in municipal utility projects.
Business with municipal utilities contributes around 5% to Group sales. In
particular, municipal utilities with low levels of in-house generation are
currently burdened by high energy procurement costs. Losses from a newly
developed Redispatch 2.0 software, which helps distribution system operators
and municipal utilities to intelligently distribute the renewable energy fed
into their own networks and to relieve the transmission networks, were already
recorded in the second quarter. PSI management had already previously almost
tripled investments in the underlying, market-leading product PSIcontrol to 10
million euros per year in order to improve the efficiency of configuration,
upgradeability and quality. Furthermore, management structures were bundled in
experienced hands and personnel capacities were reallocated. The new control
system developed on the PSI platform has passed an important function and load
test. With the introduction of this technology, the electricity grid business
is also to become partner-capable - pilot orders have been received. The other
business units of the Energy Management segment (transmission grids, traction
power grids, gas grids, energy trading, public transport) are developing as
planned. In Public Transport, PSI is benefiting from the increasing demand for
software for electric bus depots and received a major international order in
the third quarter. In the gas export country Malaysia, new orders doubled.
Sales in the Production Management segment (metals, industry, logistics) in
the first nine months were 11.2% higher than in the previous year at 87.3
million euros (Sept. 30, 2021 adjusted: 78.5 million euros). The segment's
operating profit improved by 44% to 14.3 million euros (Sept. 30, 2021
adjusted: 9.9 million euros). In particular, the North American business with
customers in the metals producing industry continues to develop very strongly.
The strong demand can be increasingly better served worldwide thanks to the
PSI platform, as customers and partners increasingly take over order
processing, so that PSI can concentrate on the role as a software product
vendor (ISV). With workflow, PSI Click Design and e-learning via PSI Virtual
Factory, customers and partners can carry out rollouts independently and adapt
the software to plant-specific features.
In the first quarter of 2022, the risk situation of the business activities in
Russia was reassessed. A separate segment was formed, as a significantly
higher risk situation was assumed due to the Ukraine war and the EU sanctions
as well as legal changes in Russia. PSI decided in the second quarter of 2022
to discontinue the business activities combined in the segment and to report
them separately accordingly. At the end of the third quarter of 2022, this
resulted in an effect on earnings of -3.1 million euros (previous year: -0.7
million euros). In the prior-year comparison, all carrying amounts have been
adjusted to allow an economic period comparison.
The number of employees in the Group was increased to 2,256 (Sept. 30, 2021:
2,186) due to new hires in Germany, Poland and the USA and despite the
departures in Russia. At −7.3 million euros, cash flow from operating
activities was significantly below the figure for the prior-year quarter
(Sept. 30, 2021: 16.3 million euros) due to lower project-related advance
payments and grants not yet disbursed. Cash and cash equivalents were down
12.6% year-on-year at 41.4 million euros (Sept. 30, 2021: 47.3 million euros),
also due to the dividend payment and the share buyback. Although only four
product lines became available in the cloud-based PSI App Store in the course
of the year, licenses and accompanying services were already ordered for 5.4
million euros, in some cases with seven-digit order sums. Further partnerships
with international resellers and integrators have been agreed, including in
particular Accenture and Tata Consulting. PSI will also offer generic standard
products via the app stores of major US cloud providers in 2023.
PSI adjusted the annual targets due to the problems and measures with
Redispatch 2.0 and municipal utilities on October 4, 2022. New orders and
sales of the PSI Group are now expected to be slightly above the previous
year. 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.
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
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
28.10.2022 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
Berlin, October 28, 2022 - The PSI Group improved sales by 2.5% to 179.7
million euros in the first nine months of 2022 (30 Sept. 2021 adjusted: 175.4
million euros). Due to weak order intake and significant project overruns in
the municipal utilities business, operating earnings (EBIT) were 13% down
year-on-year at 14.3 million euros (30 Sept. 2021 adjusted: 16.4 million
euros), while consolidated net profit decreased accordingly to 8.0 million
euros (30 Sept. 2021: 11.1 million euros). Despite the withdrawal in Russia
and weak orders in the municipal utilities business, new orders at 205 million
euros were 4.6% higher than in the prior-year quarter (30 Sept. 2021: 196
million euros). At 182 million euros, the order book volume on September 30,
2022 exceeded the prior-year figure by 10.3% (Sept. 30, 2021: 165 million
euros).
The Energy Management segment (energy grids, energy trading, public transport)
generated 4.6% lower sales of 92.4 million euros in the first nine months
(Sept. 30, 2021 adjusted: 96.8 million euros) and a significantly lower
operating result of 1 million euros (Sept. 30, 2021 adjusted: 7.3 million
euros). New orders, sales and in particular the segment's earnings were
impacted by weak demand and cost overruns in municipal utility projects.
Business with municipal utilities contributes around 5% to Group sales. In
particular, municipal utilities with low levels of in-house generation are
currently burdened by high energy procurement costs. Losses from a newly
developed Redispatch 2.0 software, which helps distribution system operators
and municipal utilities to intelligently distribute the renewable energy fed
into their own networks and to relieve the transmission networks, were already
recorded in the second quarter. PSI management had already previously almost
tripled investments in the underlying, market-leading product PSIcontrol to 10
million euros per year in order to improve the efficiency of configuration,
upgradeability and quality. Furthermore, management structures were bundled in
experienced hands and personnel capacities were reallocated. The new control
system developed on the PSI platform has passed an important function and load
test. With the introduction of this technology, the electricity grid business
is also to become partner-capable - pilot orders have been received. The other
business units of the Energy Management segment (transmission grids, traction
power grids, gas grids, energy trading, public transport) are developing as
planned. In Public Transport, PSI is benefiting from the increasing demand for
software for electric bus depots and received a major international order in
the third quarter. In the gas export country Malaysia, new orders doubled.
Sales in the Production Management segment (metals, industry, logistics) in
the first nine months were 11.2% higher than in the previous year at 87.3
million euros (Sept. 30, 2021 adjusted: 78.5 million euros). The segment's
operating profit improved by 44% to 14.3 million euros (Sept. 30, 2021
adjusted: 9.9 million euros). In particular, the North American business with
customers in the metals producing industry continues to develop very strongly.
The strong demand can be increasingly better served worldwide thanks to the
PSI platform, as customers and partners increasingly take over order
processing, so that PSI can concentrate on the role as a software product
vendor (ISV). With workflow, PSI Click Design and e-learning via PSI Virtual
Factory, customers and partners can carry out rollouts independently and adapt
the software to plant-specific features.
In the first quarter of 2022, the risk situation of the business activities in
Russia was reassessed. A separate segment was formed, as a significantly
higher risk situation was assumed due to the Ukraine war and the EU sanctions
as well as legal changes in Russia. PSI decided in the second quarter of 2022
to discontinue the business activities combined in the segment and to report
them separately accordingly. At the end of the third quarter of 2022, this
resulted in an effect on earnings of -3.1 million euros (previous year: -0.7
million euros). In the prior-year comparison, all carrying amounts have been
adjusted to allow an economic period comparison.
The number of employees in the Group was increased to 2,256 (Sept. 30, 2021:
2,186) due to new hires in Germany, Poland and the USA and despite the
departures in Russia. At −7.3 million euros, cash flow from operating
activities was significantly below the figure for the prior-year quarter
(Sept. 30, 2021: 16.3 million euros) due to lower project-related advance
payments and grants not yet disbursed. Cash and cash equivalents were down
12.6% year-on-year at 41.4 million euros (Sept. 30, 2021: 47.3 million euros),
also due to the dividend payment and the share buyback. Although only four
product lines became available in the cloud-based PSI App Store in the course
of the year, licenses and accompanying services were already ordered for 5.4
million euros, in some cases with seven-digit order sums. Further partnerships
with international resellers and integrators have been agreed, including in
particular Accenture and Tata Consulting. PSI will also offer generic standard
products via the app stores of major US cloud providers in 2023.
PSI adjusted the annual targets due to the problems and measures with
Redispatch 2.0 and municipal utilities on October 4, 2022. New orders and
sales of the PSI Group are now expected to be slightly above the previous
year. 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.
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
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
28.10.2022 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
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: 1474143
End of News EQS News Service
1474143 28.10.2022 CET/CEST
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