ESI Group is a leading innovator in Virtual Prototyping software and services. Specialist in material physics, ESI has developed a unique proficiency in helping industrial manufacturers replace physical prototypes by virtually replicating the fabrication, assembly and testing of products in different environments.
Today, coupled with Virtual Reality, animated by systems models, and benefiting from data analytics, Virtual Prototyping becomes immersive and interactive: ESI’s clients can bring their products to life, ensuring reliable performance, serviceability and maintainability. ESI solutions help world-leading OEM’s and innovative companies in making sure that their products will pass certification tests - before any physical prototype is built - and that new products are competitive in their market space.
Virtual Prototyping addresses the emerging need for products to be smart and autonomous and supports industrial manufacturers in their digital transformation.
Today, ESI’s customer base spans nearly every industry sector. The company employs about 1100 high-level specialists worldwide to address the needs of customers in more than 40 countries.
Annual 2015 sales
Sales totalled €124.7 million, up 12.3% year-on-year at actual rates. Acquisition-related revenue remained limited at €0.7 million, split equally between Licensing and Services. There was a positive currency effect of €6.1 million, arising mainly from positive movements of the US dollar and to a lesser extent the Japanese yen and South Korean won.
The product mix shifted towards Licenses activity, which now accounts for 77.8% of total sales compared with 76.1% in 2014.
Licenses: strong growth and solid positions
Licenses activity recorded annual sales of €97.0 million, up 14.8% at actual rates compared with the previous year. That solid growth reflects ESI Group's success in developing its installed base, which generates the very high repeat business rate of 90% at constant exchange rates. New Business amounted to €16.5 million at constant exchange rates and excluding acquisitions, a small decrease of 2.8% compared with 2014 despite strong momentum in the second half, particularly in China.
Services: double-digit growth in engineering studies
Services activity generated sales of €27.7 million, up 4.5%, driven by a solid 14.8% increase in engineering studies, ESI Group's core business.
Geographical mix: good momentum in Asia
In 2015, the geographical split in sales reflected strong growth in Licenses activity in Asia and the Americas. Asia accounted for 36% of total sales versus 35% in 2014, and the Americas for 19% compared with 17% in 2014, whereas Europe made up 46% of sales, compared with 48%.
The BRIC countries accounted for 12.6% of sales in 2015, similar to the 2014 figure. Strong growth in Licenses activity in China was partly offset by ongoing economic difficult context in Russia.
ESI Group is listed in compartment C of NYSE EURONEXT Paris.