Deployment of 2016-2020 Plan
Strategic transformation to position the industry to face future challenges
- Base effect following the strong performance in H1 2016
- Integration of new technologies as part of ESI’s PPL approach
- Amplification of the sales and marketing transformation phase
- Strategic strengthening of our ecosystem
PARIS — (BUSINESS WIRE) — September 19, 2017 — Regulatory News:
Commenting on the half-year results, Alain de Rouvray, Chairman and
Chief Executive Officer of ESI Group (Paris:
ESI), said: “In the wake
of 2016, which featured fine performances across all indicators and the
consolidation of a number of new acquisitions, we have ramped up our
five-year strategic transformation plan – “Objective 2020” – designed to
keep pace with the economic and industrial trends of the new “Outcome
Economy”. Within this context of deep transformation, our ongoing drive
to adapt our operational resources in H1 2017 took its toll on results
for the period, which also suffered from a prior-period comparable
basis. Priority was given to investments initiated in the first quarter
of the year to provide support for the launch of our disruptive ‘PPL’
(Product Performance LifecycleTM) approach. The
Group’s new solutions are based on the shift of Virtual Prototyping
towards a connected Hybrid TwinTM; making
it possible, for example, to provide virtual support for predictive
maintenance, as well as for production control and assisted or
autonomous driving. Our solutions are tackling the key challenges of the
Industry of the Future by providing businesses with complete control
over a product's entire lifecycle, from design to ultimate withdrawal,
through manufacturing of the new product and operational maintenance of
the used product that factors in the consequences of wear and tear,
including repair of the damages sustained while in service.
This
in-depth transformation in our offering is expected to last for several
quarters. But thanks to the compelling investments, the deployment of
Hybrid Twin™ solutions should enable the Group to reap the benefits of
the exceptional innovation and growth potential inherent in this new –
technologically and economically – "disruptive" positioning.
Consolidated half-year results
Half year closed on July 31
| In € millions | H1-FY 17 | H1-FY 16 |
Δ at current
|
|||
| Total sales | 53.7 | 56.0 | -4.0% | |||
| Licenses | 39.0 | 40.2 | -2.8% | |||
| Services | 14.7 | 15.8 | -6.9% | |||
| Gross margin | 36.2 | 39.1 | -2,9 (-7.4%) | |||
| % of sales | 67.3% | 69.8% | ||||
| EBITDA* | -3.9 | -0.3 | -3.5 | |||
| % of sales | -7.3% | -0.6% | ||||
| Current operating profit (loss) | -5.5 | -1.8 | -3.6 | |||
| % of sales | -10.1% | -3.3% | ||||
| EBIT | -6.0 | -2.8 | -3.2 | |||
| % of sales | -11.3% | -5.1% | ||||
| Attributable net profit (loss) | -5.9 | -3.5 | -2.4 | |||
| % of sales | -11.0% | -6.2% | ||||
| Available cash flow | 14.8 | 19.3 | -4.5 |
