Dassault Systmes Presentation September 2015 Thibault de Tersant, - - PowerPoint PPT Presentation

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Dassault Systèmes Presentation September 2015

Thibault de Tersant, Senior EVP, CFO

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Forward Looking Information

Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Company’s non-IFRS financial performance objectives, are forward-looking statements. Such forward-looking statements are based on Dassault Systèmes management's current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors. The Company’s current outlook for 2015 takes into consideration, among other things, an uncertain global economic environment. In light of the continuing uncertainties regarding economic, business, social and geopolitical conditions at the global level, the Company’s revenue, net earnings and cash flows may grow more slowly, whether on an annual or quarterly basis. While the Company makes every effort to take into consideration this uncertain macroeconomic outlook, the Company’s business results, however, may not develop as anticipated. Furthermore, due to factors affecting sales of the Company’s products and services as described above, there may be a substantial time lag between an improvement in global economic and business conditions and an upswing in the Company’s business results. In preparing such forward-looking statements, the Company has in particular assumed an average US dollar to euro exchange rate of US$1.15 per €1.00 for the 2015 third quarter and US$1.13 per €1.00 for the full year as well as an average Japanese yen to euro exchange rate of JPY135.0 to €1.00 for the third quarter and JPY134.6 to €1.00 for the full year; however, currency values fluctuate, and the Company’s results of operations may be significantly affected by changes in exchange rates. The Company’s actual results or performance may also be materially negatively affected by numerous risks and uncertainties, as described in the “Risk Factors” section of the 2014 Document de Référence, filed with the AMF on March 24, 2015, and also available on the Company’s website www.3ds.com.

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Non-IFRS Information

Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS

• measurements. Also, the Company’s supplemental non-IFRS financial information may not be comparable to similarly titled non-IFRS

measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non- IFRS financial information, are set forth in the Company’s annual report for the year ended December 31, 2014 included in the Company’s 2014 Document de Référence filed with the AMF on March 24, 2015. In the tables accompanying this press release the Company sets forth its supplemental non-IFRS figures for revenue, operating income,

• perating margin, net income and diluted earnings per share, which exclude the effect of adjusting the carrying value of acquired

companies’ deferred revenue, share-based compensation expense and related social charges, the amortization of acquired intangible assets, other operating income and expense, net, certain one-time items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments and certain one-time tax effects. The tables also set forth the most comparable IFRS financial measure and reconciliations of this information with non-IFRS information. When the Company believes it would be helpful for understanding trends in its business, the Company provides percentage increases or decreases in its revenue (in both IFRS as well as non-IFRS) to eliminate the effect of changes in currency values, particularly the U.S. dollar and the Japanese yen, relative to the euro. When trend information is expressed herein "in constant currencies", the results of the "prior" period have first been recalculated using the average exchange rates of the comparable period in the current year, and then compared with the results of the comparable period in the current year.

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1 Strategy Overview & Multi-Year Growth Plan 2 Q2 15 Business Update 3 Q2 15 Highlights and Q3 & FY15 Financial Objectives

Agenda

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Double the Addressable Market

$4 bn $8 bn $16 bn $32 bn V3 V4 V5 V6

Addressable market now exceeding $26bn

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Advancing on the Purpose

Biosphere Geosphere Product Sphere “Dassault Systèmes provides business and people with 3DEXPERIENCE universes to imagine sustainable innovations capable of harmonizing product, nature and life.”

3DEXPERIENCity

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What is Dassault Systemes’ 3DEXPERIENCity?

3DEXPERIENCity makes it possible to create a digital twin of a city and then experience it  Enabling city planners to collaborate, model, simulate and anticipate the city of the future … in order to harmonize product, nature and life

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Business Values Solution National Research Foundation (NRF)

Attached to the Prime Minister’s Office of Singapore, city-state at the fore-front of developments related to Smart Cities

• 3D planning urban development and
• ptimizing its operations
• Creating applications for civil engineering,

network and construction management, traffic analysis, energy usage, security …

• Partnership between

Dassault Systèmes and NRF to develop the Virtual Singapore Platform based upon Dassault Systèmes’ 3DEXPERIENCity

Singapore National Research Foundation Adopts 3DEXPERIENCity

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Advancing on the Spiral of Innovation

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Experience it

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Sell it

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Dream it

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1,000 2,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

2014-2019: Revenue Growth

* Software Revenue

in €m

Keeping similar path of revenue growth from 2014 to 2019

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2014-2019: Dassault Systèmes to Double EPS* non-IFRS

~ €1.75

€ 3.50

2014 Initial Guidance 2019

*Assuming the following currency rates: - €/US$: 1.37

• €/JPY: 140

EPS objective of:

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1 Strategy Overview & Multi-Year Growth Plan 2 Q2 15 Business Update 3 Q2 15 Highlights and Q3 & FY15 Financial Objectives

Agenda

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Q2 2015 Highlights

• Strong quarter demonstrating smooth direct sales model evolution
• Supporting well the full-year objectives
• Advancing on strategy implementation
• Upgrading FY15 guidance

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€ millions Q2 15 H1 15 Revenue 723.5 1388.6 Growth +27% +29% Growth exFX +14% +17%

New Licenses Revenue Growth exFX

+17% +20% Operating Margin 29.4% 27.7%

Operating Margin Growth

+0.9pt

• 0.4pt

EPS (€) 0.53 0.96 EPS Evolution* +25% +22%

Q2 15 Non-IFRS

• Top line growth, organic margin

expansion and positive currency impact resulted in strong EPS growth

*2014 EPS adjusted to reflect the two-for-one stock split effected on July 17, 2014

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Revenue by Region Non-IFRS

• Growth in North America offset in part by

weaker results in Latin America

• Europe driven by France and Southern Europe
• Strong growth in Asia in all major countries:

India, China, Korea and Japan

Q2 15 H1 15

Americas +12% +17% Europe +12% +15% Asia +20% +19% Total Revenue +14% +17%

Revenue Growth exFX by Region

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Strategy Implementation | Manufacturing

• Manufacturing in the Age of Experience
• Dealing with global presence / local portfolio
• Achieving flexibility of production resources
• Successfully launching products at worldwide level
• Managing certification of quality and conformity
• Reducing environment impact and waste …
• Major technological advancement taking place
• Financial stakes which exceed all others

http://compassmag.3ds.com/2#/2/All

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Industrialization Production & Maintenance

Connecting Virtual and Real

“We think this solution will

enable us to increase by 10% the efficiency in our industrialization phases. It will also enable us to reduce by 50% costs related to the production transfer from site to site.”

Guillaume Vendroux, VP Industrial, ALSTOM Presenting at 3DEXPERIENCE FORUM November 2014 Paris

http://www.3ds.com/3ds- events/fr/3dexperience-forum- france/replay/

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Additive Manufacturing (ALM)

Material Science Functional Specification & Generative Design 3D Printing Optimization Multi-robotic Production & Certification

Towards a New Economical Model

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Strategy Implementation | Internet of Experiences

By using Netvibes, users can listen better, learn more, act faster

• Netvibes providing concrete answers to the

challenges of the Internet of Experiences

• Listen to Everything: Collect information
• Learn from Everyone: Make sense of this information
• Act in Real-Time: Take action
• Netvibes already reaching 7 million users

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Netvibes Delivering Programmable Intelligence

• Newly launched Dashboard of Things providing

“Potions” to automate interactions between data, apps and connected devices

• Partnering with Google Nest and Netatmo Weather

Station …

• On the way to reaching 30 million triggers in July

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1 Strategy Overview & Multi-Year Growth Plan 2 Q2 15 Business Update 3 Q2 15 Highlights and Q3 & FY15 Financial Objectives

Agenda

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Software Revenue Growth Non-IFRS

Q2 software revenue up +12% exFX (+7% organic) H1 software revenue up +15% exFX (+8% organic) Software Revenue

958.1 1,226.4 508.0 635.4

M€0 M€200 M€400 M€600 M€800 M€1000 M€1200 M€1400 YTD14 YTD15 2Q14 2Q15 +25.1% +12% exFX +28.0% +15% exFX

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Software Revenue Growth Non-IFRS

New Licenses Revenue

258.1 346.4 140.0 182.8

M€0 M€50 M€100 M€150 M€200 M€250 M€300 M€350 M€400 YTD14 YTD15 2Q14 2Q15 +30.6%

+17% exFX +34.2% +20% exFX

Q2 new licenses revenue up +17% exFX (+9% organic) H1 new licenses revenue up +20% exFX (+11% organic)

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YTD Change in Net Financial Position

+173 +82 +162

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+20 +44 1,154 825

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• 96

Net Financial Position Q4 2014 Net Income Non cash P&L items Change in working capital Capital expenditure Acquisitions and

• ther investing net

DS stock option exercise Cash dividend paid Other financing activity FX Impact Net Financial Position Q2 2015

Operating cash flow: +€417m compared to +€355m in H1 2014

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Proposed objectives Non-IFRS

Q3 2015 FY 2015 Revenue (M€) 660-670 2,800-2,820 Growth +14-16% ~ +20% Growth ex FX +7-9% ~ +12% Operating Margin 29-29.5% ~30% Operating Margin Growth

• 1 to 0 pt

Stable EPS (€) ~0.50 ~2.15 EPS Growth ~ +11% ~ +18% €/$ rates 1.15 1.13 €/¥ rates 135.0 134.6

H2 2015

• H2 organic new licenses growth exFX

trajectory similar to H1 with a stronger base of comparison FY 2015

• Double-digit organic new licenses

revenue growth exFX

• Operating margin of ~30.0% compared

to 29.8% in 2014 thanks to organic margin increase of ~100 basis points

• Solid EPS growth up 18%

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