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 2017 sales

Full-year sales declined by 2.0% to €135.3 million at constant exchange rates. There was a negative Forex impact over the year of €2.5 million, mainly reflecting the depreciation of the Japanese yen – and to a lesser extent the US dollar.

The product mix shifted towards Licenses, which contributed 78% of total sales, compared with 77% last year.

Licensing activity

Revenue from Licenses was stable year-on-year at €105.7 million at constant exchange rates. The Repeat Business rate was 82.4% at constant rates (80.7% at current rates), reflecting a lower share of revenue from Paid-Up Licenses (PUL) in 2017 and therefore representing a positive factor in future contract renewals. New Business, also affected by PUL impact, remained stable at constant rates at €17.8 million, compared to €17.9 million for 2016 (€17.6 million at current rates).

Services activity

The Services business reported a 6.9% decline in revenue to €29.5 million (at constant exchange rates). As a reminder, Services grew by 16.5% in 2016 due to exceptionally favorable conditions in Japan. The increase in Special Projects as a proportion of Services (17.1% vs. 15.6%) confirms the trend already witnessed in 2016, driven by innovative co-creation projects that harness new technologies developed by the Group.

Geographic sales mix

The business volume in the Asia-Pacific region slightly decreased and accounted for 38% of Total Revenue in 2017, against 39% the previous year (at constant exchange rates). The contribution of the Americas and Europe remained stable over the year at 16% and 46% of sales, respectively.

The BRIC countries generated 12.5% of sales this year (at constant rates) compared to 13.3% in 2016.

ESI Group is listed in compartment B of EURONEXT Paris.