ESI Group: Third-quarter 2020 Sales
27 Octobre 2020 - 06:00PM
Business Wire
- Q3 2020 following similar trends as H1 2020
- Resilient installed base
- Negative Impact from exchange rates
- Growing customer excitement for ESI solutions consistent
with new business based on ability to deliver outcome
value
Regulatory News:
ESI Group, (Paris:ESI)
(ISIN Code: FR0004110310, Symbol:
ESI), releases its sales for the third quarter of 2020 (period from
July 1st to September 30th).
Cristel de Rouvray, Chief Executive Officer of ESI Group,
comments: “In Q3 we report similar trends as presented since the
start of the pandemic crisis: a strong resistance with a slight
growth in Licenses Repeat business together with a serious decrease
in Services and New License activity, driven by customers’ own need
to pause some activities. We thus continue to very carefully manage
costs. Yet, we observe a growing readiness from industrialists to
engage in or pursue their digital transformation, from existing
reliance on real testing for validation to increasingly anchor more
on iterative and virtual testing and collaborative methods. Because
of ESI’s unique ability to deliver highly realistic and predictive
simulation models they are shifting budgets from real testing to
virtual prototyping – propelling it beyond the R&D departments
to being used on a real-time basis, in design, manufacturing and
operations with high proven benefits. For ESI, this means continued
robustness of the existing business and a revival of innovative new
business, thanks to local and global initiatives.”
Sales (€m)
2020
2019 proforma
Change
Current rate
Constant rate
Q3 Licenses
17.0
18.4
(7.8)%
(3.9)%
Q3 Services
4.9
6.4
(24.1)%
(22.2)%
Q3 Total
21.8
24.8
(12.0)%
(8.6)%
9-month Licenses
86.2
91.7
(6.1)%
(5.8)%
9-month Services
16.5
21.4
(23.0)%
(22.7)%
9 months Total
102.6
113.1
(9.3)%
(9.0)%
Third quarter year-over-year comparison
In Q3 2020 ESI Group generated
sales of €21.8m (-12.0% at current exchange rates), impacted by
unfavorable exchange rate trends (-8.6% at constant exchange rate –
cer). This third quarter lies in the same dynamics as the first
half of 2020.
- Q3 Licenses sales decreased to €17.0m (-7.8%, -3.9% cer) and
represented 77.7% of total sales (vs. 74.2% in Q3 2019). Both
Repeat Business (€11.0m) and New Business (€2.6m) show some
improvement compared to the first part of the year. Repeat Business
grew by 2.2% cer compared to 0.5% cer in H1. New Business in Q3
decreased by 22.8% cer compared to 53.2% cer in H1.
- Q3 Services sales, in continuation of the trend observed in H1,
decreased to €4.9m (-24.1%, -22.2% cer).
9-month comparison
ESI Group's sales for the first 9-months of 2020 amounted to
€102.6m (-9.3%, -9.0% cer) compared to the same period last
year.
Licenses decreased to €86.2m
(-6.1%, -5.8% cer). The momentum was strong on the installed base,
with a good level of licensing recurrence (85.5% over 9m 2020) and
the stability of Repeat Business (€81.2m, +0.7% cer), and more
particularly among key customers.
9-month 2020 sales
geographical breakdown by region splits as follows: EMEA represents
48.8% (vs. 49.9%), Asia/Pacific represents 36.6% (vs. 36.0%) and
the Americas represent 14.6% (vs. 14.1%). In the EMEA region, sales
decreased by -11.2%, (-11.0% cer), mainly in France and Southern
Europe. This situation ties with the slowdown in key industries for
the Group, especially in Aeronautics and Services, and is being
cautiously managed.
The sales breakdown for ESI’s
four focus industries accounted for approximately 90% during the
period (vs. 90.6%). The Automotive & Ground Transportation
activity, the Group's leading industry sector, remained relatively
stable, despite a difficult economic context. While other
industries also suffered from the pandemic crisis, the most
significant slowdown goes to the Aerospace industry.
Business highlights: Growing customer excitement
In the current uncertain
global context, the Group relies on strong resilience of its
business model and the ability of its team to revitalize new
business with compelling solutions responding to customers’ key
“Outcome Value”. Significantly and recently:
- Nissan’s Breakthrough in ‘Carbon Fiber Reinforced Polymer’
(CFRP) parts production for Safer and Lighter Vehicles. The
challenge was to industrialize the production process of this very
time-consuming and expensive manufacturing activity to reduce costs
and development time. ESI supports them in reaching the expected
level of productivity, namely: 50% reduction of the lead time and
about 80% reduction of the cycle time for molding, compared with
conventional methods.
- JMDA won the coveted “Red Dot Design Award” for their
innovative, cutting-edge child restraint systems for Tinyseats
Europe AB. Their partnership with ESI enabled rigorous testing
without the need of any ‘real’ prototypes, very early in the design
process, de-risking compliance challenges. This award demonstrates
the successful ability to navigate trade-offs among cost, design,
safety and performance with the appropriate expertise, solutions
and trust-based relationship. More here
Committed to continue shaping
the future of industry, ESI relies on its research and innovation
global teams to develop solutions answering to specific industry
problematics, for instance guiding manufacturers in their
decision-making process for their products in operation:
- In the AMPLI project, ESI Group and its European partners
(Whirlpool, IPC, ENSAM and LMS) are collaborating to improve
manufacturing efficiency, address skill gaps and retain young
talent on shop floors by equipping machine operators with real time
information and knowledge derived from domain specific numerical
models delivered in Augmented Reality. More here.
Since the beginning of the
pandemic crisis, ESI has been demonstrating its ability to sharply
pivot and adapt by establishing new ways of communication and
marketing of its value to the global ecosystem. Illustrating this
emphasis, on September 27th, Cristel de Rouvray hosted a digital
keynote to position the Group and its Hybrid Twin™ solution during
the Sino-German “World New Energy Vehicle Congress” in front of
+44,000 attendees.
Governance
As a reminder, the Board of
Directors appointed Alex Davern as “Independent Observer” in
accordance with its Nomination & Governance Committee’s
recommendation on October 21st. Alex Davern will bring his proven
expertise and long business savvy to assist the Company in finding
a right balance between long-term vision and short-term business
needs, aiming to create sustainable ‘Outcome value’ for customers,
employees, partners, and shareholders.
Upcoming events
1st global digital event – Register
HERE
ESI Live – November 5, 2020
About ESI Group
Founded in 1973, ESI Group is a leading innovator in Virtual
Prototyping solutions and a global enabler of industrial
transformation. Thanks to the company’s unique know-how in the
physics of materials, it has developed and refined, over the last
45 years, advanced simulation capabilities. Having identified gaps
in the traditional approach to Product Lifecycle Management (PLM),
ESI has introduced a holistic methodology centered on industrial
productivity and product performance throughout its entire
lifecycle, i.e. Product Performance Lifecycle™, from engineering to
manufacturing and in operation. Present in more than 20 countries,
and in major industrial sectors, ESI employs 1200 high level
specialists around the world and reported 2019 sales of €146
million. ESI is headquartered in France and is listed on
compartment B of Euronext Paris.
For further information, go to www.esi-group.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20201027005995/en/
ESI - Shareholder Relations Florence Barré investors@esi-group.com +33 1 49 78 28 28
SHAN - Press & Shareholder Relations Florent Alba ESIgroup@shan.fr
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