PSI Software AG PSI with Stable New Orders and Strong Cashflow ...

TIDM0KUR

PSI Software AG

28 April 2020

PSI with Stable New Orders and Strong Cashflow Despite Corona Crisis

DGAP-News: PSI Software AG / Key word(s): Quarter Results/Quarterly / Interim Statement
28.04.2020 / 08:56 CEST
The issuer is solely responsible for the content of this announcement.
PSI with Stable New Orders and Strong Cashflow Despite Corona Crisis
- Previous year's sales almost reached
- EBIT, at minus 16.7% to 2.5 million euros, within forecast
- Operating cash flow improves by 43% to 8.6 million eurosKPIs (TEUR) Jan. 1 - March 31, 2020 Jan. 1 - March 31, 2019 Change
Sales 50.888 51.993 -2.1%
EBIT 2.459 2.952 -16.7%
Group EBIT 1.512 1.999 -24.4%
Earnings per share (EUR) 0.10 0.13 -23.1%

Berlin - Despite the emerging Corona crisis, the PSI Group, with 96 million euros in the
first quarter of 2020 (March 31, 2019: 97 million euros), almost reached the record new orders
of the same quarter of the previous year. The order book volume on March 31, 2020 was, at
187 million euros, 2% above the previous year's value (March 31, 2019: 184 million euros).
Group sales of 50.9 million euros were also almost on a par with the previous year's figure
(March 31, 2019: 52.0 million euros), although this year's sales are more strongly influenced
by the energy sector. The operating result (EBIT) of 2.5 million euros was around 17% below
the previous year's figure and thus in line with the forecast (March 31, 2019: 3.0 million
euros). The steel crisis in Europe, Corona in China and a restructuring in Malaysia had a
negative impact. The Corona crisis led to lower productive hours in March. Group net income
fell to 1.5 million euros as of March 31 due to significant currency fluctuations (March 31,
2019: 2.0 million euros).

Energy Management (energy grids, energy trading, public transportation) achieved 14% higher
sales of 28.8 million euros in the first quarter (March 31, 2019: 25.3 million euros) and
a roughly constant operating result of 1.2 million euros (March 31, 2019: 1.1 million euros).
The BTC Smart Grid division acquired in the previous year made a positive contribution to
sales and earnings. Major orders from Russia in the areas of high-pressure gas grids and extra-high-voltage
grids are noteworthy. The subsidiary PSI Incontrol in Malaysia restructured the hardware business
and encumbered with 0.6 million euros.
Sales in Production Management (metals, industry, logistics) in the first three months of
the year amounted to EUR 22.1 million, down about 17% from the previous year (March 31, 2019:
EUR 26.7 million). The segment's EBIT fell by 23% to 1.5 million euros (March 31, 2019: 1.9
million euros). The metals production business continued to suffer from the CO(2) price-related
steel crisis in Europe. The processing of major projects in China suffered from reduced working
hours (reduction of holidays etc.) during the Corona crisis. In the USA, PSI received a major
contract from a US steel producer. The weaker sales and earnings with production and logistics
in Germany was offset by major contracts in Poland from the gas industry and e-commerce logistics.
PSI had already equipped all 2,000 employees with notebooks and remote access for home office
work in the run-up to the Corona crisis, with the exception of the 70 employees of the hardware
integration in Malaysia. Sales presentations, contract negotiations, project meetings and
acceptance tests were also conducted via video conferencing with over 95% of the customers.
Overall, home office efficiency is 75 to 85%, saving travel time and travel expenses. In addition,
further savings were achieved through controlled reduction of vacation days, reduction of
working hours and overtime. The Group's headcount was reduced by a hiring freeze in the first
months, but increased year-on-year to 2,005 (March 31, 2019: 1,931) due to new hires and the
acquisition of the smart grid business of BTC in Poland as of May 31, 2019. At 8.6 million,
cash flow from operating activities was 43% higher than in the same quarter of the previous
year (March 31, 2019: 6.0 million euros). The cash and cash equivalents of 42.7 million euros
(March 31, 2019: 45.0 million euros) will be used for the proposed dividend payment and for
sales financing in the seasonal course.
PSI will participate in the climate protection program of the German federal government (energy
shift, heating shift, transportation shift) and the Green Deal in the European Union. PSI
software contributes significantly to the integration of renewable energy into the electricity
networks. The gas network will become the sole failure guarantor and will be expanded in the
future to include green gases and a hydrogen network.
Before the Corona crisis, PSI aimed for a continuation of growth in 2020 and a further increase
in the EBIT by 10%. In a scenario forecasting this year as a normal operating mode under Corona
conditions for industrial and energy network companies, PSI management expects only a slight
decrease in sales by 5% and a 20% lower EBIT due to the high order book volume which could
be maintained in the first quarter. The second quarter will be more strongly affected by Corona,
in the third and fourth quarters a revival should begin in order to achieve the annual goals.
A catastrophically low oil price throughout the year could lead to delays in the award of
contracts in Russian gas network projects, in pipe steel projects and in energy trading software
that exceed the previous forecast.
On the basis of its own software products, the PSI Group develops and integrates complete
solutions for optimizing the flow of energy and material at suppliers (energy networks, energy
trading, public passenger transport) and industry (metals production, automotive, mechanical
engineering, logistics). PSI was founded in 1969 and employs 2,000 persons worldwide. www.psi.de
Contact
PSI Software AG
Karsten Pierschke
Head of Investor Relations and
Corporate Communication
Dircksenstraße 42-44
10178 Berlin
Germany
Phone +49 30 2801-2727
Fax +49 30 2801-1000
Email: KPierschke@psi.de

28.04.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group
AG.
The issuer is solely responsible for the content of this announcement.

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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, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1031261

End of News DGAP News Service

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