About ESI Group

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 virtual prototypes, allowing them to virtually manufacture, assemble, test and pre-certify their future products. Coupled with the latest technologies, Virtual Prototyping is now anchored in the wider concept of the Product Performance Lifecycle™, which addresses the operational performance of a product during its entire lifecycle, from launch to disposal. The creation of a Hybrid Twin™, leveraging simulation, physics and data analytics, enables manufacturers to deliver smarter and connected products, to predict product performance and to anticipate maintenance needs. 

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 1200 high-level specialists worldwide to address the needs of customers in more than 40 countries.

Annual 2016 sales

Full-year sales totaled €140.6 million up 12.7%. Acquisition-related revenue—mainly from ESI ITI GmbH—amounted €6.4 million, reflecting the implementation of initial commercial synergies. The positive impact of currency effects over the financial year came to €2.1 million. The key factor was the favorable trend in the Japanese yen, which was offset to some extent by depreciation of the pound sterling during the period.

The product mix reflects the strong performance in Services, which contributed 23% of total sales, compared with 22% in the previous financial year.

Sustained Licensing activity

Licenses activity recorded annual sales of €108.3 million, up 11.6% compared with the previous financial year. This momentum was driven by the growth in the installed base (+13.0%), that holds a high repeat business rate of 89.1% measured for the organic perimeter and at constant exchange rates. New business generated €17.9 million in revenue, up 3.0% on 2015.

Strong performance in Services 

Services revenues surged 16.5% to €32.2 million. This boost was driven by continued expansion in engineering studies (+16.8%), ESI Group’s core business, and the strong growth in special projects (+57.1%). The latter comprise co-creation and methodological transformational projects related to the newly acquired and emerging technologies.

Geographic sales mix: business momentum in Asia

In 2016, the Asia-Pacific area outperformed other regions, contributing 39% of total revenue, compared with 36% in the previous year. At the same time, business volume in the Americas shrank relatively to 16% of total sales versus 19% in 2015. Europe’s contribution remained stable at 45% of the total, compared with 46% in the previous financial year.

The BRIC countries generated 13.3% of sales compared with 12.6% in 2015. Healthy performance in China and India was among the factors that contributed to this increase.

ESI Group is listed in compartment B of EURONEXT Paris.