Solid global business growth

• Sustained Licensing activity, especially in Asia
• Strong performance in Services
• Major strategic agreements renewed, and business sector diversification
• Successful integration of ESI ITI GmbH and extension of our strategic positioning

PARIS — (BUSINESS WIRE) — March 14, 2017 — Regulatory News:

Alain de Rouvray, ESI Group’s (Paris: ESI) Chairman and Chief Executive Officer, commented: “The success of ESI Group’s commercial offering built on Immersive Virtual Engineering has been fully confirmed in 2016. The growth in the Licensing activity, which was particularly robust in Asia, and the real momentum built up in high value-added Services in 2016, reflect the growing demand among industrial companies to support their transformation towards the ‘Industry of the Future’. This represents an endorsement of ESI’s “Product Performance Lifecycle” (PPL) approach: a distinct disruption which allows industrial customers to address the complete lifecycle of their products beyond certification, through piloting of performance in operation, including in the “assisted” or “autonomous” Internet connected mode (IoT). This highly differentiating vision is based on the transformation of the ‘Virtual Prototype’ into its data driven “Hybrid Virtual Twin”, which largely benefits from the integration of the numerous innovative technologies recently acquired.

In particular, ESI ITI, developer of (0D-1D) modeling solutions for physical and mechanical systems, is actively contributing to widen our user base to new players involved in product creation, working in the early steps of modeling and analyses, before tackling the detailed simulation (3D-4D) models of the system key components.

With the compelling trend of democratization of digital simulation, we are convinced that it is indeed necessary to extend ESI Group’s positioning into complementary, flexible and inexpensive entry level solutions. This explains why we further strengthened our range of solutions through the recent acquisition of Scilab Enterprises, noted for their first-class “open-source” and “cloud-based” analytical modeling solutions that are very widely used by industry engineers, academics and researchers around the world prior to any elaborate digital simulation (0-1D to 3-4D).

Lastly, we remain confident in the Group’s ability to harness the growth resulting from the transition to the Smart Digital Factory and Industry of the Future.”

Full-year and fourth-quarter sales trends

Periods ended January 31 (unaudited figures)