DGAP-News: PSI with Strong New Orders and Significant Increase in Profits after Nine Months

PSI with Strong New Orders and Significant Increase in Profits after Nine Months
- New orders increase by 20 % to 176 million euros
- EBIT increases by 22 % to 10 million euros, group net result by 50 % to 6.9 million euros
- Energy and transportation transitions drive new orders in the energy segment

PSI Group increased new orders by 20 % to 176 million euros in the first nine months of 2018 (30 September 2017: 147 million euros). The value of orders on 30 September 2018 was, at 159 million euros, 13 % above the value for the previous year (30 September 2017: 141 million euros). Group sales improved by 6 % to 141.6 million euros (30 September 2017: 133.1 million euros), thanks to the growth in the electrical grids business and in Southeast Asia. The EBIT increased by 22 % to 10 million euros (30 September 2017: 8.2 million euros), the group net result increased by 50 % to 6.9 million euros (30 September 2017: 4.6 million euros) thanks to an improved financial result and lower taxes.

Energy Management, which, since the first quarter of 2018 consists of the areas energy grids, energy trading, public transportation and the Southeast Asia business, achieved a 7 % increase in sales to 68.9 million euros in the first nine months (30 September 2017: 64.3 million euros). The EBIT for the segment improved by 46 % to 4.2 million euros compared to the previous year (30 September 2017: 2.9 million euros). The electrical grids business received orders from leading customers in the third quarter and thus increased its new orders by more than 40 % compared to the successful previous year. Following the complex migration of intelligent field-force management, balancing group management and time series management to the group platform, investments are currently being made in the trend area of intelligent low-voltage grid management and functions for the US market. Finally, the pipeline systems business (gases and liquids) is converting its business model to software-upgrade-as-a-service. Following the encumbrances from the pilot project in the first half of the year, the first three rollout orders have been obtained. Currently, the oil price-dependent export business is also recovering, so that significant increases can be expected for 2019 and 2020. In the public transport business, PSI is experiencing a strong boom due to the trend towards electrification and subsidies and took over the planning software manufacturer Moveo Software GmbH in July 2018. The PSI subsidiary in Southeast Asia, which has been a burden in the last two years, increased sales by 23 % and achieved a positive EBIT.

Sales in Production Management (raw materials, metals, industry, logistics), that includes the Polish business as well since the first quarter of 2018, was, at 72.6 million euros, 6 % above the figure for the previous year (30 September 2017: 68.8 million euros). The EBIT improved to 6.6 million euros (30 September 2017: 6.3 million euros). In the metals business the new tariffs introduced in recent months are requiring changes from steel producers (logistics, smaller volumes, more variants, replacement of imports), that are delaying new orders, but will result in greater needs in the long run. Quality management software is especially needed for the replacement of imports, so that investments in the expansion of this functionality have slightly encumbered this business. In the context of the current diesel discussions in Germany, the automotive business significantly increased its sales in the third quarter. The customer successfully commissioned the pilot plant for the automotive factory software suite, which was built on the basis of the PSI technology platform for modern industry 4.0 swarm production, in July. Numerous sales cases for further electric vehicle and component production in Germany and Europe promise good follow-up business. The logistics business, which had to cope with growth and relocation costs, won further major orders in airport logistics. In the fourth quarter PSI is launching an improved cloud offer of production management software based on more industrially suitable conditions from its suppliers.

The number of employees in the group increased to 1,775 as of 30 September 2018 to 1,775 (30 September 2017: 1.650). The cash flow from operating activities improved to 7.2 million euros (30 September 2017: 0.6 million euros). The cash flow burden of recent years from the group-wide conversion to software-upgrades-as-a-service is coming to an end. After payment of the purchase price for Moveo Software GmbH and redemption of financial liabilities, cash and cash equivalents decreased to 35.5 million euros (30 September 2017: 39.8 million euros).

The original new order targets for the year as a whole will now be significantly exceeded by the strong new orders of 210 to 215 million euros. This already lays the foundation for growth in 2019. Due to the significantly improved position in the market, the group-wide technology platform and many beneficial trends, the sales pipeline will continue to expand. In general, PSI is concentrating increasingly on industrialized countries whose economies are less affected by higher interest rates.

Management expects a traditionally strong final quarter and is therefore very confident that the operating profit target of 15 million euros and all strategic transformation targets will be exceeded. In the course of the fourth quarter, management will assess the conditions for the following year and define a guidance. Based on the order backlog, the strong pipeline and the company's development, it is clear that the sales growth targets will be raised.

Based on its own software products, PSI Group develops and integrates complete solutions for optimizing the flow of energy and materials for utilities (energy networks, energy trading, public transport) and industry (mining, metals production, automotive, mechanical engineering, logistics). PSI was founded in 1969 and employs more than 1,750 people worldwide. www.psi.de

Contact

PSI Software AG
Karsten Pierschke
Head of Investor Relations and Corporate Communications
Dircksenstraße 42-44
10178 Berlin
Germany

Phone +49 30 2801-2727
Fax +49 30 2801-1000
E-Mail: KPierschke@psi.de