PSI Software SE

Earnings Release • Oct 4, 2022

National Storage Mechanism | Additional information

RNS Number : 7792B

PSI Software AG

04 October 2022

PSI Software AG / Key word(s): Change in Forecast/Results Forecast

PSI adjusts Annual Targets due to Business Performance in the Electrical Grids business

04-Oct-2022 / 17:41 CET/CEST

Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by EQS - a service of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

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PSI adjusts Annual Targets due to Business Performance in the Electrical Grids business

Berlin, October 4, 2022 - The Executive Board of PSI Software AG has decided to adjust the annual target for the operating result from continuing operations (EBIT) to 20 million euros due to the course of business in the Municipal Utilities business (current consensus estimate: 25.1 million euros). The Municipal Utilities business, which generates around 5% of Group sales, was exposed to further cyclical declines in customer investments in the third quarter.

Losses from a newly developed Redispatch 2.0 software were already recorded in the second quarter. This software helps distribution system operators and municipal utilities in particular to play a greater role than before in the integration of renewable energy through balancing measures and to relieve the transmission grids. In parallel with the development process of the software, the regulatory basis for Redispatch 2.0 was changed many times by the regulation authorities and the BDEW association, and the technical requirements were tripled in total as a result. Compensation payments for these additional services caused by regulation are being clarified, but clarification is expected to continue beyond the end of the year.

Against this background, the PSI Executive Board has decided to adjust the allocation of employees in the PSI Group and to implement organizational measures to bundle sales and project execution in the municipal utilities market segment under an experienced management team. In order to deliver future projects in a more product-oriented and automated manner, development will also be bundled and the division's development budget increased from 4 million to 10 million euros.

The other business units of the Energy Management Segment (gas grids, energy trading, public transport) are developing as planned. As expected, the Production Management segment will increase order intake and sales by 15% and earnings by 10% in 2022. The North American business in particular continues to develop very strongly. In total, new orders and sales of the PSI Group are expected to be slightly above the previous year, as already forecast in the half-year report. For the operating result (EBIT) from continuing operations (without Russia) the management now expects 20 million euros.

For 2023, the PSI Executive Board plans a return to the long-term growth and earnings increase trend. The strategic developments (PSI App Store/cloud platform) are not affected by the aforementioned problems, so that the PSI Executive Board continues to aim for the long-term target of 54 million euros EBIT for 2026, irrespective of short-term economic fluctuations.

Contact:

PSI Software AG

Karsten Pierschke

Head of Investor Relations and Corporate Communications

Dircksenstraße 42-44

10178 Berlin

Germany

Phone +49 30 2801-2727

E-Mail: KPierschke@psi.de

End of Inside Information

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Information and Explanation of the Issuer to this announcement:

The PSI Group develops its own software products for optimizing the flow of energy and materials for utilities (energy grids, energy trading, public transport) and industry (metals production, automotive, mechanical engineering, logistics). The industry-specific products, which are built from standard components, are sold both directly and via the multi-cloud PSI App Store and can also be customized by customers and partners themselves. PSI was founded in 1969 and employs over 2,200 people worldwide. www.psi.de

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04-Oct-2022 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Archive at www.eqs-news.com

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Language:	English
Company:	PSI Software AG
	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, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID:	1456743

End of Announcement	EQS News Service

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1456743  04-Oct-2022 CET/CEST

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