FY20 results
Investors presentation
ESI Group
March 17th, 2021
External Use esi-group.com
Disclaimer
This document has been prepared by ESI GROUP (the "Company") and is for information purposes only.
The information and opinions contained in this document are provided as of the date of this document only and may be updated, supplemented, revised, verified or amended, and thus such information may be subject to significant changes. The Company is not under any obligation to update the information or opinions contained herein which are subject to change without prior notice.
The information contained in this document has not been subject to independent verification. No representation, warranty or undertaking, express or implied, is made as to the accuracy, completeness or appropriateness of the information and opinions contained in this document. The Company, its subsidiaries, its advisors and representatives accept no responsibility for and shall not be held liable for any loss or damage that may arise from the use of this document or the information or opinions contained herein.
This document contains certain forward-looking statements. These statements are not guarantees of the Company's future performance. These forward-looking statements relate to the Company's future prospects, developments and marketing strategy and are based on analyses of earnings forecasts and estimates of amounts not yet determinable. Forward-looking statements are subject to a variety of risks and uncertainties as they relate to future events and are dependent on circumstances that may or may not materialize in the future. Forward-looking statements cannot, under any circumstance, be construed as a guarantee of the Company's future performance and the Company's actual financial position, results and cash flow, as well as the trends in the sector in which the Company operates, may differ materially from those proposed or reflected in the forward-looking statements contained in this document. Even if the Company's financial position, results, cash-flows and developments in the sector in which the Company operates were to conform to the forward-looking statements contained in this document, such results or developments cannot be construed as a reliable indication of the Company's future results or developments.
Many of these risks, uncertainties, and factors are currently amplified by, and may continue to be amplified by, the COVID-19 pandemic.
The Company does not accept any obligation to update or to confirm projections or estimates made by analysts or to make public any correction to any prospective information in order to reflect an event or circumstance that may occur after the date of this document.
This document does not constitute an offer to sell or subscribe or a solicitation to purchase or subscribe for securities in France, the United States or any other jurisdiction. Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption from registration thereunder. No public offering of securities may be conducted in France or abroad prior to the delivery by the French Autorité des Marchés Financiers (Financial Markets Authority) of a visa on a prospectus that complies with the provisions of Directive 2003/71/CE as amended.
Speakers
Cristel de Rouvray | Mike Salari | Olfa Zorgati | Emmanuel Leroy |
CEO | C-COO Revenue Generation | CFO & Head of Operations | EVP Industry Solutions |
Copyright © ESI Group, 2020. All rights reserved. | External Use |
ESI's Vision / Mission
We envision a world where Industry can commit to bold OUTCOMES, addressing high stakes concerns - environmental impact, safety & comfort for consumers and workers, adaptable and sustainable business models
Providing reliable and customized SOLUTIONS anchored on predictive physics to allow industries to take the right decisions at the right time.
ESI - Our new corporate purpose
Boost human creativity
to drive industrial
performance to ever
higher levels
Corporate Social Responsibility
Customer & planet example
Emancipating from real prototypes - waste, energy and raw materials savings
2020 demonstrated the resiliency of ESI's business
Long-term relationships
"With this further development of the software suite, ESI Group has achieved a quantum leap in the field of simulations.
By being able to utilize a unique mathematical model for both crash and load testing, we're improving our development efficiency at several stages of a project. Given the ever-shortening development cycles in the automobile sector, this gives us a decisive competitive edge."
Dr. Ralph Sundermeier, Head of Functional Calculation Interior and Methods at Volkswagen
"Water impact has a destructive force that is more powerful than expected. In the worst-case scenario, if the strength of the underside of the vehicle body is inadequate and the quantity of splashed water is large, the impact could cause parts on the underside to fail." Turning to virtual testing, usingESI Virtual Performance Solution (VPS), they were able to study how water impact affects the vehicle bodyby simulating a crash into different obstacles.
Honda Engineering
"ESI Virtual Seat Solution was used to determine the exact position of an occupant settling into the seat. We also used the software to simulate the inflation of the bladders and to determine how the bladders could change the posture of the seated occupant. This information allowed us to place the multi-contour bladder positions appropriately in the seat."
Missy A. Pereny, Seat Comfort Manager Lear Corporation
"ESI VA One is an outstanding software product. However, the real success is provided in the proactive, flexible, timely and high-quality support of the ESI team from our first contact with the sales team to our contact with technical support."
Florian Ruess, Managing Director, Space Structures GmbH
The path to ESI's performance improvement is to leverage this foundation for improved
New Business & profitability
2020
Building a foundation for improved growth & profitability
Key figures
EBIT (adj.) decrease limited to -4.6 m€ vs -13.6 m€ decrease in revenue
(€m) | FY 2020 | FY 2019 (Jan - Dec) | Change | Change cer |
Revenue | 132.6 | 146.2 | -9.3% | -8.7% |
Gross margin | 98.7 | 107.4 | -8.1% | -7.5% |
%revenue | 74.5% | 73.4% | ||
EBIT (adjusted*) | 3.7 | 8.3 | -55.7% | -55.0% |
%revenue | 2.8% | 5.7% | ||
EBIT | 4.0 | 8.4 | -52.0% | -55.0% |
%revenue | 3.1% | 5.8% | ||
Net result | 1.4 | n/a | n/a | |
%revenue | 1.1% | n/a | n/a | |
Cash | 22.5 | 20.2 | 11.0% |
* Adjusted before IFRS 16
EBIT (adj.) per destination - Overview
132.6
-9.3%
98.7
Operating Costs : 95.1 m€ (-4.2%)
• Improvement of GM at 74.5% vs 73.4% in 2019
• Decrease of operating costs mostly due to S&M : lower marketing costs (digital events) & decreased travel expenses
1 1
EBIT (adj.) per nature - Overview
Decrease of all types of costs
€m | FY 2020 | FY 2019 (JAN- DEC) | VARIATION | |||
Amount | %revenue | Amount | %revenue | Amount | % Var | |
Revenue | 132.6 | 146.2 | -13.6 | -9.3% | ||
Expenses linked to revenue | -7.9 | -6.0% | -9.0 | -6.1% | 1.1 | -11.7% |
Staff costs | -93.4 | -70.5% | -95.9 | -65.6% | 2.5 | -2.6% |
Other costs | -27.6 | -20.8% | -33.6 | -23.0% | 6.1 | -18.1% |
Total costs to EBIT (adj.) | 128.9 | 137.9 | -9.0 | -6.6% | ||
EBIT (adjusted) | 3.7 | 2.8% | 8.3 | 5.7% | -4.6 | -55.8% |
Cash position & Net financial debt
Good trend of financial indicators
Cash position
m€
FY20
FY19
Cash
22,5
20,2
Net financial debtGearing
Net financial debt/Equity
45
Incl. RCF
0,0
10,0
40
35
30
25
20
15
10
5
0
40
2018
2019
201820192020
35
30
25
20
15
10
5
0
2020
201920192020
2020
Net financial debt decreased in FY 20 by 4.5m€
Net financial debt bridge
31/12/2019
Cash position increase
External Use
Syndicated loan reimbursmentRevolving credit decreaseState guaranteed loan
CIR factoring decrease
Other
31/12/2020
Improving the Group's long-term profitability
Rationalization of some elements of the Group's cost structure
Facilities
Adapt to new ways of working
Simplification & synergiesGo digital
Align on ROI
Global structure
Events & travel
Software development
Q1 forward-looking statement
Revenues
€52m - €55m
vs €54.9m in 2020
These statements are subject to a number of risks and uncertainties, including those related to the COVID-19 virus and associated further economic and market disruptions; further adverse changes or fluctuations in the global economy; further adverse fluctuations in our industry, foreign exchange fluctuations, changes in the current global trade regulatory environment; fluctuations in customer demands and markets; fluctuations in demand for our products including orders from our large customers; cyber-attacks; expense overruns; and adverse effects of price changes or effective tax rates.
2021
A roadmap to align all Group efforts to accelerate revenue growth: focus on New Business
ESI - A reliable partner for helping customers make the right decision at the right time
Combination of services & licenses, predictive physics 48 years
Global company
Cross-industry with top-class customers
Committed company
On BFM Business - March 6th, 2021
Our approach to tackle customers challenges
Allowing industries to make the right decisions at the right time
4 industries of focus
Automotive &
Land transportation
Aerospace, Defense &
Heavy industry
Naval
4 customers targeted outcome
Pre-certification & validation
Human centric
Smart manufacturing
Energy
Pre-experience
Customized approach
Our sales motion
Execute reliably Globally & locally
Global account management
Local sales
2021, a focus on New Business
Global marketing programs to feed our new business pipeline
A program is a globally coordinated approach-to-market to increase New Business: Account-base Marketing, dedicated events, industry demonstrators to make it easier to sell
End-to-end Assembly Solution
Take the right decision at the right time
Customer Challenges / Stakes
ESI outcome :
CO2 emissions, EV, Lightweight
High accuracy virtual prototyping
Complexity : body variant, growing outsourcing rate
Multi-material / Multi-process assemblies
Assembly Process digitalization
End-to-end chaining of product development cycle
Product Design
Ensure feasibility of new design
Performances Engineering
Validate Performances as Manufactured
Manufacturing & Assembly
Ensure Assembly Quality
Industrialization / In Service
Improve Productivity
Assembly Operation Performances
Hybrid TwinTM of Assembly Line
Example
Filling customer's gap with more Predictive models for full vehicle safety as Manufactured
No ManufacturingWith Manufacturing
Influence
Influence
Upcoming events
April 29th
Feb 11th - April 29th
May 27th
June 22nd
Q1-FY21 sales
Webinar Series
Safe, Clean & Productive
Heavy Machinery
Webinar
Fatigue Simulation of Welded Structures
General Shareholders
Meeting
More events presented in our website:www.esi-group.com/company/events
Take away
Demonstrated resilience of our business model
Focus on New Business
Culture of transparency & execution
A committed company
Thank you
Any Questions?
Email:investors@esi-group.com
Copyright © ESI Group, 2020. All rights reserved.
External Use esi-group.com
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ESI Group SA published this content on 17 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 March 2021 16:52:04 UTC.