PSI Software AG PSI with strong industrial business in 2022

TIDM0KUR

PSI Software AG

29 March 2023

PSI Software AG / Key word(s): Annual Results/Annual Report
PSI with strong industrial business in 2022

29.03.2023 / 08:47 CET/CEST
The issuer is solely responsible for the content of this
announcement.

PSI with strong industrial business in 2022
- Sales roughly constant at 247.9 million euros
- EBIT as announced at 20.2 million euros
- PSI App Store sales reaches 7.5 million eurosPerformance indicators 1 Jan. - Dec. 1 Jan. - Dec. Change
(KEUR) 31, 2022 31, 2021 (adjusted)
Sales 247,938 245,493 +1.0%
EBIT 20,186 24,995 - 19.1%
Group net result 9,694 15,837 - 38.8%
Earnings per share (EUR) 0.62 1.01 - 38.6%

Berlin, March 29, 2023 - The PSI Group achieved stable
sales of 247.9 million euros in fiscal year 2022 (Dec. 31,
2021, adjusted: 245.5 million euros). Due to significant
project overruns in the business with municipal utilities,
the operating result (EBIT) of 20.2 million euros was 19%
below the previous year's value (Dec. 31, 2021, adjusted:
25.0 million euros), the consolidated result decreased even
more to 9.7 million euros (Dec. 31, 2021: 15.8 million euros)
due to the withdrawal from Russia. High gas prices over
the course of the year led to weak orders in the business
with gas importers and municipal utilities, with the result
that new orders were 4.9% down year-on-year at 253 million
euros (Dec. 31, 2021: 266 million euros).

The Energy Management segment (energy grids, energy trading,
public transport) achieved 5.6% lower sales of 130.4 million
euros (Dec. 31, 2021, adjusted: 138.1 million euros) and
a significantly lower operating result of 1.4 million euros
(Dec. 31, 2021, adjusted 9.7 million euros). New orders,
sales and in particular the segment's earnings were impacted
by weak municipal utility projects (7% of PSI sales). In
addition, there were losses from over one hundred regulatory
changes for the Redispatch 2.0 software, which helps municipal
utilities and distribution system operators intelligently
distribute renewable energy in their own grids and relieve
the transmission grids. Business with distribution and transmission
networks as well as industrial networks remained stable
in real terms (30% of PSI sales). In order to focus the
market-leading product PSIcontrol on more efficient customer
customization and higher volumes, PSI management tripled
product development capacity to 125 employees. In addition,
the new partner-capable control system PSIscada, which was
developed on the PSI platform, passed an important load
test in 2022 for the management of a nationwide gas network.
It will gradually take over more functional areas in combination
with PSIcontrol. PSI also continued to enjoy high demand
for software for electric bus depots.

Sales in the Production Management segment (metals, industry,
logistics) grew by 9.4% to 117.5 million euros (Dec. 31,
2021, adjusted: 107.4 million euros). The segment's operating
profit increased by 23% to 20.2 million euros (Dec. 31,
2021 adjusted: 16.4 million euros). In particular, the North
American business with customers in the metals producing
industry continues to develop very strongly. After 2.5 million
euros in precautionary provisions due to the payment behavior
of Chinese customers, PSI will limit itself even more to
reliable regular customers and partners. The strong demand
can be increasingly better served worldwide thanks to the
PSI platform, as customers and partners increasingly take
over order processing and independently carry out rollouts
with workflow, PSI Click Design and e-learning in the PSI
Virtual Factory and adapt the software to plant-specific
features.

With the decision to sell the Russian subsidiaries in the
4(th) quarter, the Russian subsidiaries were classified
as a business held for sale. This resulted in an earnings
effect of -7.1 million euros (previous year: -1.7 million
euros).

The number of employees in the Group was increased to 2,251
(Dec. 31, 2021: 2,223) due to new hires in Poland and the
USA despite the departures in Russia. At 3.4 million euros,
cash flow from operating activities was significantly lower
than in the previous year (Dec. 31, 2021: 38.8 million euros),
due to the lower consolidated net profit and the resumption
of liabilities from vacation accruals and sales tax after
the pandemic year. Cash and cash equivalents decreased to
45.4 million euros (Dec. 31, 2021: 67.5 million euros) also
due to the dividend payment and the share buyback. Although
only five product lines were available in the cloud-based
PSI App Store during the course of the year, licenses and
accompanying services were already ordered for 7.5 million
euros, in some cases with seven-digit order sums. Further
partnerships with international resellers and integrators
have been agreed, including Accenture and Tata Consulting.
PSI will further expand its business with Group rollouts
and integration partners in 2023. The share of fixed price
business, which is subject to inflation and fulfillment
risks, was further reduced to now 29%. The annually recurring
maintenance and upgrade fees were further increased to 97
million euros.

PSI expects a recovery in the Energy Management segment,
a continuation of growth in Production Management and a
significant increase in App Store sales in 2023. Without
taking into account a possible worsening of the geopolitical
situation, the management is planning increases in new orders
and sales of up to 10% and the operating result of around
20% to 25 million euros for 2023. The strategic developments
(cloud-based App Store and Collaboration Space) will be
continued as planned, so that the PSI Executive Board continues
to aim for the long-term target of 54 million euros EBIT
for 2026.

The PSI Group develops its own software products for optimizing
the flow of energy and materials for utilities (energy grids,
energy trading, public transport) and industry (metals production,
automotive, mechanical engineering, logistics). The industry-specific
products, which are built from standard components, are
sold both directly and via the cloud-based PSI App Store
and can also be customized by customers and partners themselves.
PSI was founded in 1969 and employs more than 2,200 people
worldwide. www.psi.de

Contact:

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

Tel. +49 30 2801-2727
Email: KPierschke@psi.de

29.03.2023 CET/CEST Dissemination of a Corporate News, transmitted
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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, Hanover, Munich, Stuttgart, Tradegate
Exchange
EQS News
ID: 1594991

End of News EQS News Service

1594991 29.03.2023 CET/CEST

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