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PSI Software SE — Interim / Quarterly Report 2024
Sep 9, 2024
340_10-q_2024-09-08_d3c37fa8-71eb-427f-8305-9fbc31f46b15.pdf
Interim / Quarterly Report
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Industrial Artificial Intelligence
Pioneering a Smarter World
Report on the 1st Quarter of 2024
PSI
PSI Group Data as per 31 March 2024 at a Glance (IFRS)
| 01/01-31/03/24 in KEUR | 01/01-31/03/23 in KEUR | Change in KEUR | Change in % | |
|---|---|---|---|---|
| Revenues | 50,268 | 58,230 | -7,962 | -13.7 |
| Operating Result | -14,788 | 4,008 | -18,796 | >100 |
| Result before income taxes | -15,438 | 3,548 | -18,986 | >100 |
| Net result | -16,410 | 3,282 | -19,692 | >100 |
| Cash and cash equivalents | 62,818 | 61,018 | +1,800 | +3.0 |
| Employees on 31 March | 2,335 | 2,257 | +78 | +3.5 |
| Revenue/Employee | 21.5 | 25.8 | -4.3 | -16.6 |
Interim Management Report
Business Development
Earnings
PSI Group achieved 13.7% lower sales of 50.3 million euros in the first quarter of 2024 (March 31, 2023: 58.2 million euros). The operating result (EBIT) was negatively impacted by the cyberattack in February 2024 and was clearly negative at -14.8 million euros (March 31, 2023: 4.0 million euros). The consolidated result was correspondingly -16.4 million euros (March 31, 2023: 3.3 million euros). Incoming orders fell by 19.5% year-on-year to 95 million euros as a result of the cyberattack (March 31, 2023: 118 million euros). The order backlog at March 31, 2024 was on a par with the previous year at 212 million euros (March 31, 2023: 212 million euros).
The Energy Management segment (energy grids, energy trading, public transport) achieved 19.3% lower sales of 23.8 million euros (March 31, 2023: 29.4 million euros) and a significantly lower operating result of -11.1 million euros (March 31, 2023: 0.7 million euros). With the exception of the PSI subsidiary in Southeast Asia, all of the segment's business units were severely affected by the cyberattack from mid-February onwards.
Sales in the Production Management segment (metals, industry, logistics) decreased by 8.0% to 26.5 million euros (March 31, 2023: 28.8 million euros). The segment's operating result deteriorated to -2.9 million euros (March 31, 2023: 3.9 million euros). Although all Production Management business units were also affected by the cyberattack, the impact on sales and earnings was lower than in Energy Management due to the more product-based business.
Financial Position
Cash flow from operating activities improved by 25% year-on-year to 15.9 million euros (March 31, 2023: 12.7 million euros). At 62.8 million euros, cash and cash equivalents were 1.8 million euros higher than in the previous year (March 31, 2023: 61.0 million euros).
Report on the 1st Quarter
2 | Report on the 1st Quarter
Assets
Compared to 31 December 2023, there have not been any material changes in the Group's assets.
Personnel Development
The number of employees in the Group increased slightly to 2,335 (March 31, 2023: 2,257).
PSI-Shares
The PSI stock ended the first quarter of 2024 with a final price of 23.00 euros, 9.1% below the final 2023 price of 25.30 euros. In the same period, the technology index TecDAX recorded an increase of 3.5%.
Risk Report
The estimate of the corporate risk has not changed since the Annual Report for 31 December 2023.
Outlook
PSI Group was the target of a cyberattack in February 2024. The majority of the PSI Group's IT systems were taken offline and had to be shut down. PSI Group was temporarily only able to carry out central activities of its business model to a limited extent. In the meantime, productive operations have been largely resumed since the beginning of May. In the course of the restart, further measures were adopted which will significantly increase the security of the IT systems as part of a revised IT strategy.
As already announced at the beginning of June, the Executive Board expects, taking into account the negative effects of the cyberattack, a reduction in sales of around 20 to 30 million euros and a negative operating result in the upper single-digit to lower double-digit million range for the full year.
Group Balance Sheet
from 1 January 2024 until 31 March 2024 according to IFRS
| Assets | 3 Month Report
01/01-31/03/24
KEUR | Annual Report
01/01-31/12/23
KEUR |
| --- | --- | --- |
| Non current assets | | |
| Intangible assets | 71,883 | 73,112 |
| Property, plant and equipment | 37,236 | 37,429 |
| Investments in associates | 693 | 693 |
| Deferred tax assets | 7,495 | 8,133 |
| | 117,307 | 119,367 |
| Current assets | | |
| Inventories | 8,230 | 4,977 |
| Net trade receivables | 37,756 | 48,315 |
| Receivables from long-term development contracts | 53,259 | 49,552 |
| Other assets | 10,252 | 6,135 |
| Income tax receivables | 4,004 | 4,332 |
| Cash and cash equivalents | 62,818 | 50,475 |
| | 176,319 | 163,786 |
| Total assets | 293,626 | 283,153 |
| Total Equity and Liabilities | | |
| --- | --- | --- |
| Equity | | |
| Subscribed capital | 40,185 | 40,185 |
| Capital reserves | 35,137 | 35,137 |
| Reserve for treasury shares | -4,698 | -4,698 |
| Other reserves | -18,902 | -18,544 |
| Retained earnings | 43,236 | 59,646 |
| | 94,958 | 111,726 |
| Non-current liabilities | | |
| Pension provisions and similar obligations | 42,706 | 42,958 |
| Deferred tax liabilities | 4,156 | 4,803 |
| Other liabilities | 534 | 534 |
| Provisions | 1,032 | 1,032 |
| Lease liabilities | 17,408 | 17,918 |
| Financial liabilities | 12,312 | 13,189 |
| | 78,148 | 80,434 |
| Current liabilities | | |
| Trade payables | 25,357 | 18,864 |
| Other liabilities | 30,384 | 32,801 |
| Provisions | 3,402 | 3,017 |
| Liabilities from long-term development contracts
and deferred revenue | 50,718 | 26,289 |
| Lease liabilities | 7,001 | 6,581 |
| Financial liabilities | 2,505 | 2,118 |
| Liabilities in connection with discontinued assets | 1,153 | 1,323 |
| | 120,520 | 90,993 |
| Total equity and liabilities | 293,626 | 283,153 |
Report on the 1st Quarter | 3
Group Income Statement
from 1 January 2024 until 31 March 2024 according to IFRS
| | 3 Month Report
01/01-31/03/24
KEUR | 3 Month Report
01/01-31/03/23
KEUR |
| --- | --- | --- |
| Sales revenues | 50,268 | 58,230 |
| Other operating income | 1,187 | 6,688 |
| Cost of materials | -7,748 | -5,690 |
| Personnel expenses | -46,774 | -43,464 |
| Depreciation and amortization | -3,585 | -3,680 |
| Other operating expenses | -8,136 | -8,076 |
| Operating result | -14,788 | 4,008 |
| Interest and similar income | 135 | 131 |
| Interest expenses | -785 | -591 |
| Result before income taxes | -15,438 | 3,548 |
| Income tax | -1,141 | -588 |
| Result after income taxes from continuing operations | -16,579 | 2,960 |
| Result after income taxes from discontinued operations | 169 | 322 |
| Net result | -16,410 | 3,282 |
| Earnings per share (in Euro per share, basic and diluted) | -1.06 | 0.21 |
| Profit attributable to shareholders from continuing operations | -1.07 | 0.19 |
| Profit attributable to shareholders from discontinued operations | 0.01 | 0.02 |
| Weighted average shares outstanding | 15,487,995 | 15,487,995 |
Group comprehensive Income Statement
from 1 January 2024 until 31 March 2024 according to IFRS
| | 3 Month Report
01/01-31/03/24
KEUR | 3 Month Report
01/01-31/03/23
KEUR |
| --- | --- | --- |
| Net result | -16,410 | 3,282 |
| Currency translation of foreign operations | -358 | -380 |
| Actuarial gains / losses | 0 | 0 |
| Income tax effects | 0 | 0 |
| Group comprehensive result | -16,768 | 2,902 |
4 | Report on the 1st Quarter
Group Cash Flow Statement
from 1 January 2024 until 31 March 2024 according to IFRS
| | 3 Month Report
01/01-31/03/24
KEUR | 3 Month Report
01/01-31/03/23
KEUR |
| --- | --- | --- |
| CASHFLOW FROM OPERATING ACTIVITIES | | |
| Result before income taxes | -15,269 | 3,870 |
| Adjustments for non-cash expenses | | |
| Amortisation of intangible assets | 975 | 1,000 |
| Depreciation of property, plant and equipment | 873 | 976 |
| Amortization of right-of-use | 1,737 | 1,704 |
| Income and expenses from asset disposals | 0 | -18 |
| Interest income | -135 | -131 |
| Interest expenses | 468 | 590 |
| Other non-cash income/expenses | -169 | -322 |
| | -11,520 | 7,669 |
| Changes of working capital | | |
| Inventories | -3,252 | -2,067 |
| Trade receivables and receivables from long-term development contracts | 6,850 | 1,920 |
| Other current assets | -3,788 | -5,243 |
| Provisions | -252 | -566 |
| Trade payables | 6,491 | -4,724 |
| Other non-current and current liabilities | 22,124 | 17,122 |
| | 16,653 | 14,111 |
| Income taxes paid | -798 | -1,453 |
| Cash flow from operating activities | 15,855 | 12,658 |
| CASHFLOW FROM INVESTING ACTIVITIES | | |
| Additions to intangible assets | -53 | -206 |
| Additions to property, plant and equipment | -719 | -120 |
| Interest received | 135 | 131 |
| Cash flow from investing activities | -637 | -195 |
| CASHFLOW FROM FINANCING ACTIVITIES | | |
| Proceeds/repayments from/of borrowings | -659 | 4,968 |
| Repayments of lease liabilities | -1,801 | -1,680 |
| Interest paid on leases | -201 | -128 |
| Interest paid | -185 | -59 |
| Cash flow from financing activities | -2,846 | 3,101 |
| CASH AND CASH EQUIVALENTS | | |
| AT THE END OF THE PERIOD | | |
| Changes in cash and cash equivalents | 12,372 | 15,564 |
| Valuation-related changes in cash and cash equivalents | -29 | 10 |
| Cash and cash equivalents at beginning of the period | 50,475 | 45,444 |
| Cash and cash equivalents at the end of the period | 62,818 | 61,018 |
Report on the 1st Quarter | 5
Statement of Changes in Equity
from 1 January 2024 until 31 March 2024 according to IFRS
| Number of shares issued | Share capital | Additional paid-in capital | Reserve for treasury stock | Other reserves | Accumulated results | Total | |
|---|---|---|---|---|---|---|---|
| KEUR | KEUR | KEUR | KEUR | KEUR | |||
| As of 1 January 2023 | 15,487,995 | 40,185 | 35,137 | -4,698 | -17,102 | 65,517 | 119,039 |
| Group comprehensive result after tax | -1,442 | 324 | -1,118 | ||||
| Dividends paid | -6,195 | -6,195 | |||||
| As of 31 December 2023 | 15,487,995 | 40,185 | 35,137 | -4,698 | -18,544 | 59,646 | 111,726 |
| Group comprehensive result after tax | -358 | -16,410 | -16,768 | ||||
| As of 31 March 2024 | 15,487,995 | 40,185 | 35,137 | -4,698 | -18,902 | 43,236 | 94,958 |
Shares held by Management Board and Supervisory Board as of 31 March 2024
| Shares on 31/03/2024 | Shares on 31/03/2023 | |
|---|---|---|
| Executive Board | ||
| Gunnar Glöckner | 0 | 0 |
| Robert Klaffus | 54 | - |
| Dr. Harald Schrimpf | - | 63,500 |
| Supervisory Board | ||
| Andreas Böwing | 0 | 0 |
| Elena Günzler | 2,022 | 2,022 |
| Prof, Dr, Uwe Hack | 600 | 600 |
| Prof, Dr, Wilhelm Jaroni | 0 | 0 |
| Uwe Seidel | 493 | 493 |
| Karsten Trippel | 117,322 | 115,322 |
6 | Report on the 1st Quarter
Notes on the consolidated financial statements as of 31 March 2024
The Company
1. Business Activities and Legal Background
The business activities of PSI Software SE and its subsidiaries relate to the development and sale of software systems and products fulfilling the specific needs and requirements of its customers, particularly in the following industries and service lines: utilities, manufacturing, logistics and transportation. In addition, the Group provides services of all kinds in the field of data processing, sells electronic devices and operates data processing systems.
The PSI Group is structured into the core business segments energy management and production management. The company is listed in the Prime Standard segment of the Frankfurt stock exchange.
The company is exposed to a wide range of risks that are similar to other companies active in the dynamic technology sector. Major risks for the development of the PSI Group lie in the success with which it markets its software systems and products, competition from larger companies, the ability to generate sufficient cash flows for future business development as well as in individual risks regarding the integration of subsidiaries, organisational changes and the cooperation with strategic partners.
The condensed interim consolidated financial statements for the period from 1 January 2024 to 31 March 2024 were released for publication by a decision of the management on 28 August 2024.
The condensed interim consolidated financial statements for the period from 1 January 2024 to 31 March 2024 were produced in compliance with IAS 34 "Interim Financial Reporting". The condensed interim consolidated financial statements do not contain all the data and notes prescribed for the annual financial statements and should be read in conjunction with the consolidated financial statements for 31 December 2023.
Report on the 1st Quarter | 7
8 | Report on the 1st Quarter
2. Accounting and Valuation Principles
With regard to the principles of accounting and valuation and especially the application of International Financial Reporting Standards (IFRS), see the group consolidated financial statements for the financial year 2023.
3. Seasonal Influences on the Business Activities
Seasonal effects resulted in the PSI Group operations with regards to the receipt of maintenance revenues in the first quarter of the financial year (deferment of the influences on the result of corresponding incoming payments throughout the year) and significantly greater demand and project accounting in the fourth quarter of the financial year.
4. Significant Events
PSI Group was the target of a cyberattack in February 2024. The majority of the PSI Group's IT systems were taken offline and had to be shut down. PSI Group was temporarily only able to carry out central activities of its business model to a limited extent. In the meantime, productive operations have been largely resumed since the beginning of May. In the course of the restart, further measures were adopted which will significantly increase the security of the IT systems as part of a revised IT strategy.
5. Changes in the Consolidation Group
Compared to 31 December 2023 there were no changes in the consolidation group.
Report on the 1st Quarter | 9
6. Selected Individual Items
Cash and cash equivalents
| | 31 March 2024
KEUR | 31 December 2023
KEUR |
| --- | --- | --- |
| Bank balances | 58,447 | 47,712 |
| Fixed term deposits | 4,341 | 2,739 |
| Cash | 30 | 24 |
| | 62,818 | 50,475 |
Receivables from long-term development contracts, liabilities from long-term development contracts and deferred revenue
Costs and estimated earnings in excess of billings on uncompleted contracts arise when revenues have been recorded but the amounts cannot be billed under the terms of the contracts. Such amounts are recognized according to various performance criteria. Costs and estimated earnings contain directly allocable costs (labour cost and cost of services provided by third parties) as well as the appropriate portion of overheads including pro rata administrative expenses.
Liabilities and receivables according to the percentage-of-completion method break down as follows:
| | 31 March 2024
KEUR | 31 December 2023
KEUR |
| --- | --- | --- |
| Receivables from long-term development contracts (gross) | 132,014 | 125,701 |
| Payments on account | -78,755 | -76,149 |
| Receivables from long-term development contracts | 53,259 | 49,552 |
| Payments on account (gross) | 96,929 | 94,676 |
| Set off against contract revenue | -78,755 | -76,149 |
| Liabilities from long-term development contracts | 18,174 | 18,527 |
| Deferred revenue | 32,544 | 7,762 |
| Liabilities from long-term development contracts | 50,718 | 26,289 |
Sales revenues
The sales revenues reported in the group income statement break down as follows:
| 31 March 2024
KEUR | Energy
Management | Production
Management | Total |
| --- | --- | --- | --- |
| Software development at fixed price | 4,428 | 3,907 | 8,335 |
| Software development, time and material | 807 | 9,526 | 10,333 |
| Maintenance | 11,568 | 11,641 | 23,209 |
| License fees | 774 | 1,281 | 2,055 |
| Merchandise | 6,188 | 148 | 6,336 |
| Total | 23,765 | 26,503 | 50,268 |
| 31 March 2023
KEUR | Energy
Management | Production
Management | Total |
| --- | --- | --- | --- |
| Software development at fixed price | 9,561 | 5,490 | 15,051 |
| Software development, time and material | 4,087 | 9,090 | 13,177 |
| Maintenance | 11,721 | 11,074 | 22,795 |
| License fees | 818 | 2,823 | 3,641 |
| Merchandise | 3,250 | 316 | 3,566 |
| Total | 29,437 | 28,793 | 58,230 |
Taxes on income
The main components of the income tax expenditure shown in the group income statement are added as follows:
| | 31 March 2024
KEUR | 31 March 2023
KEUR |
| --- | --- | --- |
| Effective taxes expenses | | |
| Effective tax expenses | -1,149 | -1,650 |
| Deferred taxes | | |
| Emergence and reversal of temporary differences | 8 | 1,062 |
| Tax expenses | -1,141 | -588 |
10 | Report on the 1st Quarter
Segment Reporting
The development of the segment results can be seen in the Group segment reporting.
Segments of the PSI Group:
- Energy management: Intelligent solutions for network operators in the fields of electricity, gas, district heating and pipelines as well as for public transport, Focal points are reliable and economically sound control system solutions for intelligent energy grid management and the safe operation of traffic infrastructures as well as trade and sales management in the liberalized energy market,
- Production Management: Software products and solutions for production planning, optimization and control as well as efficient logistics, Focuses are the optimization of the use of resources and the increase of efficiency, quality and profitability,
Group Segment Reporting
from 1 January 2024 until 31 March 2024 according to IFRS
| Energy Management | Production Management | Reconciliation | PSI Group | |||||
|---|---|---|---|---|---|---|---|---|
| 31/03/2024 KEUR | 31/03/2023 KEUR | 31/03/2024 KEUR | 31/03/2023 KEUR | 31/03/2024 KEUR | 31/03/2023 KEUR | 31/03/2024 KEUR | 31/03/2023 KEUR | |
| Sales revenues | ||||||||
| Sales to external customers | 23,765 | 29,437 | 26,503 | 28,793 | 0 | 0 | 50,268 | 58,230 |
| Inter-segment sales | 682 | 791 | 553 | 4,755 | -1,235 | -5,546 | 0 | 0 |
| Segment revenues | 24,447 | 30,228 | 27,056 | 33,548 | -1,235 | -5,546 | 50,268 | 58,230 |
| Operating result before interest, tax, depreciation and amortization | -9,249 | 2,447 | -1,368 | 5,649 | -586 | -408 | -11,203 | 7,688 |
| Operating result before depreciation and amortization resulting from purchase price allocation | -10,945 | 835 | -2,808 | 3,969 | -801 | -529 | -14,554 | 4,275 |
| Depreciation and amortization resulting from purchase price allocation | -115 | -148 | -119 | -119 | 0 | 0 | -234 | -267 |
| Operating result | -11,060 | 687 | -2,927 | 3,850 | -801 | -529 | -14,788 | 4,008 |
| Net finance result | -417 | -237 | -43 | -155 | -190 | -68 | -650 | -460 |
| Result before income taxes | -11,477 | 450 | -2,970 | 3,695 | -991 | -597 | -15,438 | 3,548 |
Report on the 1st Quarter | 11
Responsibility Statement
To the best of our knowledge, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the group, and the interim management report of the group includes a fair review of the group's development and performance of its position, together with a description of the principal opportunities and risks associated with the expected development of the group in the remaining months of the financial year, in accordance with proper accounting principles of interim consolidated reporting.
12 | Report on the 1st Quarter
Financial Calendar
4 June 2024 Publication of Annual Result 2023
4 June 2024 Analyst Conference
26 July 2024 Annual General Meeting
30 August 2024 Report on the 1st Quarter of 2024
6 September 2024 Report on the 1st Six Months of 2024
17 September 2024 Capital Market Day
31 October 2024 Report on the 3rd Quarter of 2024
25 to 27 November 2024 German Equity Forum, Analyst Presentation
Your Investor Relations contact:
Karsten Pierschke
Phone: +49 30 2801-2727
E-Mail: [email protected]
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For the latest IR information, please visit our website at www.psi.de/ir.
PSI Software SE
Dircksenstraße 42-44
10178 Berlin
Germany
Phone: +49 30 2801-0
Fax: +49 30 2801-1000
[email protected]
www.psi.de
PSI