CIMdata PLM Industry Summary Online Archive
14 March 2013
Financial News
ESI Group: 2012/13 Annual Sales: +15.7% to 109.0 Million Euros
Alain de Rouvray, ESI Group’s Chairman and CEO, comments: “The solid growth recorded over this financial year has further strengthened ESI Group’s leadership position in the virtual prototyping market, which has seen its rate of growth accelerate amongst key accounts where there is evident demand for technological breakthroughs and innovation. This trend explains the substantial growth in Services, particularly in sectors facing increasing competitive pressure and environmental constraints, where the technological and methodological added value of ESI’s approach is a response to these essential challenges.
To be as close as possible to major industrial zones, the Group has successfully strengthened its presence to support the growth in BRIC countries, and notably in China and Russia.
The integration of our recent acquisitions is progressing well and we are maintaining our external growth strategy. However the unexpected slowdown observed in the United States in our fourth quarter and negative exchange rate expectations suggest caution in the beginning of the year.”
4th quarter sales
Sales for the 4th quarter of 2012/13 totalled 42.4 million euros, up +5.9% in actual terms compared with the same quarter of 2011/12. The seasonal effect inherent to ESI Group’s activity over the period remained very strong, despite a slight weakening in a quarter that accounted for 39% of annual sales, as opposed to 42.5% a year ago.
The scope over the 4th quarter of 2012/13 was similar to that of the 4th quarter of 2011/12, as sales associated with the integration of OpenCFD’s activity were relatively insignificant over the period (€343k). The growth recorded over the 4thquarter can therefore be considered as essentially organic.
Licenses activity recorded sales of 33.2 million euros, an increase of +2.4% in actual terms when compared to the same period the previous year; a growth negatively impacted by patently difficult economic factors observed in the United States. The installed base grew by +3.9% to 30.9 million euros, giving a high repeat business rate of 84%, whilst New Business remained stable at 6.9 million euros.
Services activity maintained its high growth rate, with sales increasing by +20.7% in actual terms to 9.2 million euros. This growth was essentially achieved in Europe and Asia, United States remained stable due to budget issues, notably regarding governmental projects.
In the 4th quarter, total activity improved slightly in favour of Asia (28% vs. 27%) and Europe (51% vs. 50%) to the detriment of the Americas (21% vs. 23%).
Annual sales
The Group’s annual sales came to 109.0 million euros in 2012/13, an increase of +15.7% in actual terms and +12.6% at constant currency. Excluding acquisitions, annual sales would have totalled 106.0 million euros, giving an organic growth of +12.6%. The product mix moved towards Services, which represented 28.9% of annual sales (vs. 26.9% the previous year), whilst Licenses accounted for 71.1% of annual sales (vs. 73.1%).
Over 2012/13, Licenses sales totalled 77.5 million euros, up +12.6% in actual terms. This increase was notably the result of New Business, which totalled 17.0 million euros in 2012/13 compared with 15.9 million euros a year earlier; an increase of +6.6%. Growth was also driven by the substantial increase of +11.7% in the installed base to 61.2 million euros, giving a repeat business rate that remained high at 86.5% (vs. 87.4% in 2011/12).
Services sales recorded buoyant growth of +24.1% to 31.5 million euros, reflecting the growing demand for high value-added projects.
The geographical split in activity remained globally stable: Europe 43%, Asia 37% and the Americas 20%.
2012/13 highlights
Despite the economic difficulties observed in the United States in the 4th quarter, ESI Group has seen a further migration of manufacturing industry towards digital factories and engineering. The figures recorded over the 2012/2013 financial year again emphasise the acceleration in virtual prototyping in a growing number of industrial sectors; a phenomenon particularly noticeable in the sectors that are the most competitive and subject to major regulatory constraints.
To view an unabridged version of this press release, visit: http://www.esi-group.com/corporate/finance/news/financial-press-release/2012-13-annual-sales-15-7-to-109-0-million-euros
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