PSI Software AG Stable New Orders and Sales in First Six Months

TIDM0KUR

PSI Software AG

28 July 2020

PSI Software AG / Key word(s): Half Year Results/Quarter Results
PSI with Stable New Orders and Sales in First Six Months

28.07.2020
The issuer is solely responsible for the content of this announcement.

PSI with Stable New Orders and Sales in First Six Months
- Sales of 104.9 million euros just slightly below previous year
- EBIT with minus 16.4% to 5.4 million euros within the forecast
- Operating cash flow increased by 20.7 million to 19.4 million eurosKPIs (TEUR) 1 Jan. - 30 June 2020 1 Jan. - 30 June 2019 Change
Sales 104,853 106,632 -1.7%
EBIT 5,413 6,478 -16.4%
Group net income 3,723 4,384 -15.1%
Earnings per share (EUR) 0.24 0.28 -14.3%

Berlin, 28 July 2020 - The PSI Group, with 141 million euros, only just missed the record
volume of new orders of the previous year (30 June 2019: 142 million euros), despite the impacts
of the Corona virus crisis. The order book volume on 30 June 2020 was, at 176 million euros,
3% above the previous year (30 June 2019: 171 million euros). Group sales of 104.9 million
euros were also almost on a par with the previous year's figure (30 June 2019: 106.6 million
euros), although this year's sales are more strongly influenced by the energy segment. The
EBIT was, at 5.4 million euros, 16.4% below the previous year (30 June 2019: 6.5 million euros)
and thus in line with the forecast. Group net income fell by 15.1% to 3.7 million euros (30
June 2019: 4.4 million euros).

Energy Management (energy grids, energy trading, public transportation) achieved 4.4% higher
sales of 55.5 million euros (30 June 2019: 53.2 million euros) and about a 4% lower EBIT of
2.4 million euros (30 June 2019: 2.5 million euros) in the first six months. The BTC Smart
Grid segment acquired last year continued to contribute to the positive sales and result.
As anticipated, orders received from regions dependent on the oil price such as Russia, the
Middle East and Malaysia were weaker, but better in European industrial countries and North
America.
Sales in Production Management (metals production, industry, logistics) was in the first six
months, with 49.3 million euros, 7.7% below the previous year (30 June 2019: 53.4 million
euros). The EBIT for the segment dropped by more than 17% to 3.7 million euros (30 June 2019:
4.5 million euros). Like its customers, the automotive business, already burdened by the conversion
to electro mobility, even had to announce short-time work. In June, however, the regular business
with core customers recovered, primarily in the special-purpose vehicle and electric vehicle
sectors. The metals production business continued to suffer from the steel crisis in Europe,
which was exacerbated by Corona, but obtained a major contract from a US steel producer. The
rollout will partially be performed by the customer and its IT integration partner, which
underscores the success of PSI's partnering software platform with graphic process management
and PSI Click Design. In the logistics business, industrial logistics was weaker, but e-commerce
logistics was very strong, especially in Poland and Russia. The Corona crisis has made customers
aware again of the importance of robust supply chain design and flexible production and supply
chain management. The matching PSI products such as PSIglobal are in high demand. PSI is developing
a block-chain-based supply chain documentation function for the upcoming supply chain law.
The Group's headcount was reduced by 10 during the second quarter, but increased year-on-year
to 1,995 (30 June 2019: 1,947). After a hiring freeze lasting several months, PSI is rehiring
in the USA, Benelux, and Poland in particular but also in Germany. The cash flow from operations
increased by 20.7 million to 19.4 million euros (30 June 2019: -1.4 million euros). The cash
and cash equivalents of 50.4 million euros (30 June 2019: 31.4 million euros) will be used
to finance sales in the course of the season. Following the acquisition of Prognos Energy
GmbH in the second quarter, PSI is examining other acquisitions up to the double-digit millions
in the energy sector.
Good progress is being made with the multi cloud initiative for automatic provision of all
products based on the PSI platform across all marketable clouds (public, private, hybrid,
on premise). This "continuous integration" and "continuous delivery" will reduce the delivery
costs for conventional B2B projects. Furthermore, the first test customers and VAR integration
partners as well as some platform-based products (Production Planning ASM, Warehouse Management
WMS and Metals Virtual Factory) will be offered for use in a PSI multi-cloud as Software-as-a-Service.
Generic products for planning (ASM), steering (JSCADA), and time series (TSM) have already
been integrated in the initial product lines. The functionality and performance will be quickly
further developed. An initial major energy grid is being equipped with the new control system
JSCADA. The generic planning is already being applied in production control, in the scheduling
for field force personnel and in the pipeline/tank management. Metals production planning
is currently being renewed on the basis of ASM. The generic products are replacing previous
multi-developments and significantly improving partner capability, product attractiveness,
piece number effects, and therefore profitability. Customers and partners have reacted enthusiastically
to the adaptability of the PSI software with graphic business process modeling (BPM), PSI
Click Design for the user interfaces of applications (web as well) as well as the plug & play
software bus.
Numerous industrial customers seem to prepare for an economic catch-up in 2021 and are using
the Corona-induced production pause for digitizing their processes. Furthermore, there are
indications that the digressive depreciation in Germany for 2020 and 2021 might contribute
to a good final quarter.
PSI continues to profit from the trends in electro-bus promotion, flexibilization and documentation
of supply chains, e-commerce logistics, use of energy distribution grids for wide-ranging
transportation of renewable energy (DSO redispatch) and the expansion of the hydrogen infrastructure.
Due to the continued high level of orders, PSI management still anticipates a slight up to
5% decrease in sales and an up to 20% lower operating result for 2020 necessitated by Corona.
As the second quarter could already have been the low point of the crisis for PSI and the
signs toward recovery are continuing to be confirmed, PSI will make a decision on adjusting
its annual goals in fall.
Based on its own software products, PSI Group develops and integrates complete solutions for
optimizing the flow of energy and material for utilities (energy networks, energy trading,
public 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

28.07.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group
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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: 1103437

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