Daniel Harari’s vision Chief Executive Officer
RECORD RESULTS DESPITE A DIFFICULT MACROECONOMIC AND GEOPOLITICAL ENVIRONMENT
As early as March 2018, we faced significant macroeconomic instability against the backdrop of a trade war. Despite the clear wait-and-see response from customers, we achieved another record year in terms of both revenues and income. In this economic climate, it is more vital than ever for us to stay on course and continue to implement our Lectra 4.0 strategy, initiated at the start of 2017. We have adopted an even more cautious approach, while resolutely maintaining our investments in the future.
“In 2018, we achieved the targets we had set for ourselves for the second year of our strategic roadmap.”
2018: A YEAR MARKED BY THE LAUNCH OF MANY INNOVATIVE SOLUTIONS
Lectra’s success is based on its long-term vision, and the new chapter being written today is built on particularly solid foundations. Our two previous roadmaps enabled us to develop our Lectra 4.0 strategy with the ambition of becoming an indispensable player in Industry 4.0. Our 2017-2019 strategic roadmap is the first step in this Lectra 4.0 strategy. It is founded on an analysis of the major trends which already, or will soon, constitute major challenges facing our customers. Since 2017, we have expanded our R&D teams, strengthened our skills in relation to cloud computing, the industrial Internet of things, big data and artificial intelligence, while transforming the design and development of our solutions and initiating trials of our new offers with customers.
In 2018, we launched in a number of pilot countries, a series of innovative offers enabling our customers to implement the principles of Industry 4.0. These offers result from nearly four years of research, the involvement of several hundred people and more than €30 million in fully expensed research and development investments. The full potential of these investments will be gradually reached over the coming years. By deciding to sell our new software offer exclusively in Software as a Service (SaaS) mode, we have chosen to modify our business model to further develop our recurring revenues with a positive medium-term impact on turnover and operating income, while accepting a negative impact in the short term. This approach also reflects our desire to place our customers’ experience and success at the heart of how we think and operate. The ability to access our software in SaaS mode, as a subscription, gives our customers much greater flexibility in their operations.
“Lectra’s disruptive offers launched in 2018 and 2019 provide unprecedented value designed to support companies in the fashion, automotive and furniture industries in their implementation of Industry 4.0 principles.”
ON COURSE FOR INDUSTRY 4.0
Although 2019 also promises to be unpredictable, in view of persistent geopolitical uncertainties and the heightened risks of protectionism, our virtuous business model, our particularly robust financial structure, our new subsidiary structure and the strengthening of our Executive Committee all enhance our ability to achieve another year of growth and improved operational performance.
We will gradually roll out our new offers worldwide in 2019, and launch new offers the same year. We will know by the end of 2020 whether they are achieving the success they should, given the value they bring to our customers. While it is difficult to estimate the speed at which such disruptive offers will be adopted, these solutions and services should make an increasingly significant contribution to our medium-term growth.
All of us at Lectra are committed to ensuring the success of our new offers. We are confident that they will facilitate the anticipated transformation of the global fashion, automotive and furniture markets.
I am convinced that 2019 will be another very successful year for Lectra.
Chairman and Chief Executive Officer, Lectra