• Q3 2020 following similar trends as H1 2020
• Resilient installed base
• Negative Impact from exchange rates
• Growing customer excitement for ESI solutions consistent with new business based on ability to deliver outcome value

PARIS — (BUSINESS WIRE) — October 27, 2020 — Regulatory News:

ESI Group, (Paris: ESI) (ISIN Code: FR0004110310, Symbol: ESI), releases its sales for the third quarter of 2020 (period from July 1^st to September 30^th).

Cristel de Rouvray, Chief Executive Officer of ESI Group, comments: “In Q3 we report similar trends as presented since the start of the pandemic crisis: a strong resistance with a slight growth in Licenses Repeat business together with a serious decrease in Services and New License activity, driven by customers’ own need to pause some activities. We thus continue to very carefully manage costs. Yet, we observe a growing readiness from industrialists to engage in or pursue their digital transformation, from existing reliance on real testing for validation to increasingly anchor more on iterative and virtual testing and collaborative methods. Because of ESI’s unique ability to deliver highly realistic and predictive simulation models they are shifting budgets from real testing to virtual prototyping – propelling it beyond the R&D departments to being used on a real-time basis, in design, manufacturing and operations with high proven benefits. For ESI, this means continued robustness of the existing business and a revival of innovative new business, thanks to local and global initiatives.”

Third quarter year-over-year comparison

In Q3 2020 ESI Group generated sales of €21.8m (-12.0% at current exchange rates), impacted by unfavorable exchange rate trends (-8.6% at constant exchange rate – cer). This third quarter lies in the same dynamics as the first half of 2020.