ESI Group

First Quarter 2018 Sales

Regulatory News:

Alain de Rouvray, Chairman and Chief Executive Officer of ESI Group (Paris:ESI), comments: “ESI Group, while facing a slow first quarter impacted by a significant currency effect and the repositioning of contracts in Japan, sees many encouraging factors such as the strong momentum of its New Business and a solid growth in Europe. New contracts in the automotive and aerospace industries, focusing on manufacturers’ ‘Digital Transformation’ and ‘Smart Factory’, support our confidence of an expected upturn in growth in 2018, founded on the Group’s disruptive value proposition. Beyond the continuous success of our historic offering of Virtual Prototyping for pre-certification of brand new and ‘ready-to-sell’ products, our offer now addresses ‘in-life’ assisted or autonomous performance, e.g. of used or repaired products in-Service, and of fabrication and assembly lines in factory operation. Importantly, our management reorganization around three business pillars is poised to better address our customers’ business structure. Coupled with an in-depth reshaping of our sales and marketing organization and strategy, these major adaptive initiatives are expected to foster a renewed business momentum for this and the following years.”

Transformation towards Industry 4.0

ESI Group pursues its disruptive positioning, in the context of Industry 4.0, as a ‘catalyst and solution integrator’ in its clients’ Digital Transformation’ process, built on ESI’s multi-domain integrated Virtual Prototyping solutions. This unique positioning is reflected in ESI’s new organization, aligned with the customers’ business structure, consistent with the updated value proposition for product full lifecycle performance, and segmented into three business pillars: Engineering (design and development of new products), Manufacturing (fabrication and assembly of components) and In-Service (usage, piloting and maintenance of components and products integrated in and interacting with their operational environment, from launch to repair and ultimate withdrawal).

During this first quarter, most of the activity was recorded in the first two business pillars. Of particular significance was a major contract in virtual reality won for the Manufacturing pillar with a top-tier automotive manufacturer as it steps up its transition towards the Smart Factory.

Also, reflecting the overall pertinence and timing of our Industry 4.0 solution strategy, EMEA area has already shown this quarter a very encouraging double digit growth of its solid installed base and new business supported by a top quality innovation eco-system. Growth in China was also robust, thanks to business with new customers.