Solid growth in ESI’s focus
industries
- Growth of +6.6% (5.3% cer) driven by license growth at +7.1%
(+5.8% cer)
- Double-digit growth in Asia driven by key customers
Regulatory News:
ESI Group (Paris:ESI), Paris,
France, (ISIN Code: FR0004110310, Symbol: ESI), today releases its
revenues for the first quarter of 2022 (period from January 1st to
March 31st) approved by the Board of Directors on May 2nd,
2022.
Cristel de Rouvray, Chief Executive Officer of ESI Group,
comments: “As announced in October 2021, Q1 FY22 was the
inaugural quarter of our “OneESI 2024 – Focus to Grow” 3-year plan.
We rolled out a holistic transformation including, for the first
time in ESI’s history, a streamlined approach to global management
of sales. At 6.6% (5.3% cer), Q1 FY22 growth is in line with the
guidance issued in early March and constitutes a notable
performance, demonstrating our ability to maintain solid growth
momentum while conducting ambitious changes. This performance has
been achieved in a challenging macroeconomic and geopolitical
context, which is further testimony to the strength and resilience
of our solutions. I am impressed by our team’s energy, resiliency,
and commitment to our OneESI plan as we undertake to enhance both
growth and profitability to deliver long-term value to our
shareholders.”
Revenues (€m)
Q1-2022
Q1-2021
Change
Change
Constant exchange rate
(cer)
Q1 - Licenses
53.2
49.6
+7.1%
+5.8%
Q1 – Services
5.1
5.1
+1.7%
+0.6%
Q1 - Total
58.3
54.7
+6.6%
+5.3%
ESI Group now presents its revenues pro forma excluding special
projects (public grants for R&D projects).
In the first quarter of its fiscal year (January 1, 2022 - March
31, 2022), ESI recorded revenues of €58.3m, up to 6.6% (+5.3%
constant exchange rate - cer); at the upper end of the range of the
communicated guidance (+4% to +6%).
Licensing revenue increased by
+7.1% (+5.8% cer). The growth was led by the Repeat Business with
an increase of +8.5%. Services revenues were stable at +1.7% (+0.6%
cer).
ESI experienced growth across
nearly all industries over the quarter, with the Automotive
industry continuing to be one of the key drivers of ESI Group’s
performance along with the 3 other focus industries (Aerospace,
Heavy Industry, and Energy) which represented more than 90% of the
company's revenue.
Geographically, the Asian
region led the growth, at +11.5% cer and +11.7% cer for its
licenses business. This growth in the Asian region was primarily
driven by customers for whom ESI is a key strategic partner, and
further growth potential was fostered by ongoing account management
initiatives. The EMEA and Americas regions grew respectively at
+3.1% cer and +1.2% cer.
General Assembly Meeting information
ESI Group's Annual General
Meeting will be held on Tuesday, June 28, 2022 at 1:30 pm CET.
Participation and document consulting procedures are detailed in
the notice of meeting will be made available on the company's
website. Shareholders are invited to regularly consult the section
dedicated to the Shareholders' Meeting on the Company's
website: HERE
Group’s new corporate document available for shareholders
2021 Universal Registration
Document – HERE
Forward-looking statement
At constant exchange rate
H12
2022
2023
2024
Revenue Growth Goal (excluding special
projects3)
4% - 6%
4% - 6%
6% - 8%
7% - 9%
Adjusted EBIT4 Goal
10% - 12%
15% - 17%
20% - 22%
The Group will organize an
investor’s conference on September 27th, 2022, and will give an
update on the plan and extend its guidance to 2025.
In the light of recent events
and the Russian aggression against Ukraine over the last weeks, ESI
Group has decided to suspend all business development with Russia
and Belarus customers, which represents less than 1.5% of revenues
in 2021.
These statements are subject
to a number of risks and uncertainties, including those related to
the COVID-19 virus and the war in Ukraine and associated further
economic and market disruptions; further adverse changes or
fluctuations in the global economy; further adverse fluctuations in
our industry, foreign exchange fluctuations, changes in the current
global trade regulatory environment; fluctuations in customer
demands and markets; fluctuations in demand for our products
including orders from our large customers; cyber-attacks; expense
overruns; and adverse effects of price changes or effective tax
rates. The company directs readers to its Universal Registration
Document – Chapter 3 presenting the risks associated with the
company’s future performance.
Upcoming events
- Annual General Meeting – June
28th, 2022
- Half-year results – September
7th, 2022 (5:35 pm CET)
- Investor’s conference –
September 27th, 2022
About ESI Group Founded in 1973, ESI Group envisions a
world where Industry commits to bold outcomes, addressing
high-stakes concerns - environmental impact, safety & comfort
for consumers and workers, adaptable and sustainable business
models. ESI provides reliable and customized solutions anchored on
predictive physics modeling and virtual prototyping expertise to
allow industries to make the right decisions at the right time
while managing their complexity. Acting principally in automotive
& land transportation, aerospace, defense & naval and heavy
industry, ESI is present in more than 20 countries, employs 1200
people around the world, and reported 2021 sales of €136.6 million.
ESI is headquartered in France and is listed on compartment B of
Euronext Paris. For further information, go to
www.esi-group.com.
1 Constant exchange rate 2 Excluding Russian business potential
impact on revenue 3 For the 3-year plan, the growth of revenue
excludes special projects (public grants for R&D projects) 4
Adjusted EBIT is a non-GAAP indicator based on EBIT (IFRS).
Adjusted EBIT corresponds to EBIT before stock-based compensation
expenses, restructuring charges, impairment, and amortization of
intangibles related to acquisitions, IFRS 16 standard on leases,
and other non-recurring items.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220502005394/en/
ESI Group Florence
Barré investors@esi-group.com +33 1 49 78 28 28
Verbatee - Press & Shareholder Relations Jérôme Goaer, j.goaer@verbatee.com, +33 6 61
61 79 34 Aline
Besselièvre, a.besselievre@verbatee.com, +33 6 61 85 10
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