DGAP-News: PSI with Improved Net Result and Strong Cash

DGAP-News: PSI Aktiengesellschaft für Produkte und Systeme der Informationstechnologie / Key word(s): Quarter Results/9-month figures PSI with Improved Net Result and Strong Cash Flow after Nine Months 31.10.2016 / 09:02 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- PSI with Improved Net Result and Strong Cash Flow after Nine Months - Group net result increases by 3 % despite lower sales - Sales 6 % below previous year due to capacity adjustments in Southeast Asia - Cash flow from operating activities improves by 370 % <pre> (TEUR) 1 Jan. - 30 Sept. 1 Jan. - 30 Sept. Change 2016 2015 Sales 127,861 136,614 -6 % EBIT 6,920 7,271 -5 % Group EBIT 3,900 3,801 +3 % Earnings per share 0.25 0.24 +4 % (EUR) </pre> PSI Group attained 6 % lower sales of 127.9 million Euros (30 September 2015: 136.6 million Euros) in the first nine months of 2016 due to adjustments of capacity in Southeast Asia. The EBIT was, at 6.9 million Euros (30 September 2015: 7.3 million Euros), 5 % below the level of the previous year, the earnings before taxes were improved by better financial earnings by 12 % to 6.5 million Euros (30 September 2015: 5.8 million Euros). With 3.9 million Euros, the Group net result was 3 % above the level of the previous year (30 September 2015: 3.8 million Euros), the earnings per share improved accordingly to 25 Eurocents (30 September 2015: 24 eurocents). Due to sales price discipline despite weak market environment and due to regulatory effects, the level of new orders was, at 134 million Euros, 10 % lower (30 September 2015: 149 million Euros). The order book volume on 30 September 2016 was, at 132 million Euros, 3 % above the volume of the previous year (30 September 2015: 128 million Euros). Energy Management (energy networks, energy trading) achieved 2 % lower sales of 48.3 million Euros in the first nine months (30 September 2015: 49.1 million Euros), the EBIT for the segment remained constant at 3.5 million Euros. The electrical energy business continued to increase sales and earnings. Important contracts were won in neighbouring European countries. The power suppliers of two million cities were equipped with the new Field Force software with big success. This software is further migrated to the Group Java platform to connect it to Industry 4.0 production management applications. In the gas and oil business, demand recovers slowly following the drop in commodity prices in the first quarter, in particular with an upgrade order from the German market leader as well as with new orders from Russia. In energy trading, an important license order by a gas and hydro power operator is only booked in the fourth quarter so the sales and EBIT for 30 September was slightly below the level of the previous year. Sales in Production Management (raw materials, metals production, automotive, logistics) during the first nine months were, at 63.0 million Euros, 4 % below the value for the previous year (30 September 2015: 65.6 million Euros). The EBIT was increased by 15 % to 5.2 million Euros (30 September 2015: 4.5 million Euros). In the mines and roads business, new orders were processed in traffic management. The metals business attained additional rollout contracts from major steel companies despite the ongoing global steel crisis and improved the margin on the basis of slightly lower sales. The automotive and industry business won important major contracts in the field of rail vehicle construction and vehicle maintenance and improved the result. Logistics increased sales and invested in a new SaaS/ Cloud version of its logistics software migrated to the Group Java platform. In Infrastructure Management (transportation and security) there was a distinct decrease in sales to 16.5 million Euros (30 September 2015: 21.9 million Euros). The EBIT decreased to -0.9 million Euros (30 September 2015: 0 million Euros) despite the good result of the public transportation business. In Southeast Asia PSI is moving the expansion of the software share of sales after adjustments in the capital-intensive hardware business forward. A SaaS/Cloud standard, based on the Group's Java platform, was developed for a large telecommunications company for the rapidly growing smart city market as well as a web portal for grid shutdown requests for an energy utility. After capacity adjustments in Asia and despite new hires in Europe, the number of employees in the Group decreased to 1,632 on 30 September 2016 (30 September 2015: 1,665). PSI is particularly looking for software salespeople in the energy network and automotive business. The cash flow from operating activities improved by 3.3 million Euros to 4.2 million Euros (30 September 2015: 0.9 million Euros). Liquidity on 30 September 2016 increased to 35.9 million Euros (30 September 2015: 29.4 million Euros). PSI is actively seeking and examines targets for acquisition in the fields of energy grids and automotive and logistics. Above all in Production Management, the implementation of a number of pilot projects based on the migration to the Java Group platform is well advanced so that from 2017 existing customers will be migrated and new customers will be addressed. The PSI board is confident that the target range for the EBIT formulated in the 2015 annual report will be achieved. In the market weakened by commodity prices and regulation, PSI expects the order intake and sales to be slightly below the prior-year level after adjustment of the low-margin hardware business and with continued price discipline. On the basis of its own software products, PSI AG develops and integrates complete solutions for energy management (gas, oil, electricity, heat, water, energy trading), production management (mining, metals, automotive, mechanical engineering, logistics) and infrastructure management for transport and safety. PSI was founded in 1969 and employs 1,650 persons worldwide. www.psi.de PSI AG Karsten Pierschke Head of Investor Relations and Corporate Communication Dircksenstraße 42-44 10178 Berlin Phone +49 30 2801-2727 Fax +49 30 2801-1000 E-Mail: KPierschke@psi.de --------------------------------------------------------------------------- 31.10.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de --------------------------------------------------------------------------- Language: English Company: PSI Aktiengesellschaft für Produkte und Systeme der Informationstechnologie Dircksenstraße 42-44 10178 Berlin Germany Phone: +49 (0)30 2801-0 Fax: +49 (0)30 2801-1000 E-mail: ir@psi.de Internet: www.psi.de ISIN: DE000A0Z1JH9 WKN: A0Z1JH Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange End of News DGAP News Service --------------------------------------------------------------------------- 515833 31.10.2016