PSI Software SE: Driving Digital Transformation in Process Optimization
In this in-depth presentation, Karsten Pierschke, Head of Investor Relations & Corporate Communications at PSI Software SE, provides an insightful overview of PSI’s business model, strategic direction, and financial outlook. As a technology leader in process control software, PSI has been at the forefront of industrial digital transformation for over 55 years.
Company Overview & Business Model
1969 PSI Software SE established itself as a leading software provider for process control and optimization systems in various vertical markets. The company specializes in energy infrastructure, metals production, discrete manufacturing, logistics, and industrial AI, serving a niche B2B market with solutions tailored to specific industry challenges.
With over 2,300 employees across 17 international locations, PSI remains committed to technological innovation and customer-centric solutions. The company generated €270 million in revenue in 2023, focusing on AI-driven, cloud-based transformation.
Core Business Segments & Market Leadership
PSI Software SE is structured into four key vertical markets:
Grid & Energy Management
A European leader in energy control systems, PSI provides smart grid solutions for electricity, gas, oil, district heating, and water utilities.
Process Industries & Metals Production
PSI’s globally leading Manufacturing Execution System (MES) and AI-driven supply chain optimization support decarbonization and energy efficiency in metals production and process industries.
Discrete Manufacturing
The company delivers ERP and MES solutions for the automotive and mechanical engineering industries, optimizing production efficiency and resource management.
Logistics & Supply Chain Optimization
PSI’s logistics software suite covers warehouse management, transport management, and supply chain optimization, ensuring efficient and automated workflows.
PSI is divesting its Mobility business unit to streamline its core focus areas.
Geographical Reach & Customer Base
PSI operates in 17 countries and serves a highly selective customer base of around 1,700 businesses. Its clients include major utility providers, industrial leaders, and global manufacturers, including:
- Energy grid operators such as E.ON and international network providers
- Metals industry giants like Nippon Steel, Nucor, and US Steel
- Automotive OEMs and suppliers in Germany, Europe, and North America
- Retail and logistics companies in Eastern Europe and Asia-Pacific
Financial Performance & Challenges
PSI Software SE faced several operational and external challenges in recent years, impacting profitability:
- 2022: Withdrawal from Russian operations due to geopolitical tensions led to a revenue decline.
- 2023: Operational issues in energy grid projects affected EBIT margins, resulting in a lower-than-expected 2% margin.
- 2024: A cyberattack in February disrupted business for several months, delaying revenue recognition into 2025.
Despite these challenges, PSI has demonstrated remarkable resilience, retaining all its customers and maintaining a strong order backlog. This positions the company for significant growth in 2025, a testament to its stability and potential.
Strategic Roadmap: Transition to SaaS & Cloud-Based Software
PSI Software SE is transforming significantly towards a cloud-first, SaaS-enabled business model. The shift includes:
- Migration of core products to cloud-based and SaaS solutions
- Expanding high-margin, recurring revenue streams
- Enhancing scalability through digital innovation
By 2026, PSI expects a higher percentage of revenues from subscription-based services, driving long-term profitability and growth.
Financial Outlook & Growth Expectations
PSI’s strategic vision for the next four years includes:
- 2025: Revenue recovery driven by order backlog and catch-up growth
- 2026-2028: Transition to SaaS-based revenues, increasing profit margins
- 2028 Target: Achieving €400 million in revenue with an EBIT margin of ~15%
This transformation aligns with PSI’s long-term goal of enhancing operational efficiency, profitability, and international market expansion.
Conclusion: The Future of PSI Software SE
Despite external disruptions and industry shifts, PSI remains resilient and well-positioned for future growth. Its strong customer base, AI-driven innovation, and shift to cloud solutions will enable the company to scale operations, enhance profitability, and strengthen its market position.
Investors and stakeholders can expect a dynamic shift towards high-value, recurring revenues, ensuring sustainable growth and long-term success.
For further details, PSI invites investors to reach out for more insights into our growth strategy and market outlook. We value your interest and look forward to meaningful discussions about our future.
January 28, 2025
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