“While overall results were in line, our new license activity was slightly below our expectations due to 3DEXPERIENCE purchase decisions taking place at a business strategy level, and requiring more time from customers, as the very last days of the quarter demonstrated.

“With respect to our 2016 non-IFRS revenue objective, we are updating our range to €3.015 to €3.030 billion. At the low end, this reflects the addition of the CST acquisition for one quarter and the full benefit from currency during the third quarter. We are also narrowing the guidance range to €15 million to reflect the fact that there is only one quarter left to the year.

“Looking at 2016 in total, we expect a year of solid software revenue and earnings per share growth, well reflecting the strong traction we are seeing with 3DEXPERIENCE, improving sales trends in our Professional channel with SOLIDWORKS and continued good dynamics of our recurring software revenue.”

The Company’s fourth quarter and full year 2016 financial objectives are as follows:

• Fourth quarter 2016 non-IFRS total revenue objective of about €832 to €847 million based upon the exchange rates assumptions below; non-IFRS operating margin of about 33% to 35%; and non-IFRS EPS of about €0.69 to €0.74;
• 2016 non-IFRS revenue growth objective of about 6% to 7% in constant currencies at €3.015 to €3.030 billion (reflecting the principal 2016 currency exchange rate assumptions below);
• 2016 non-IFRS operating margin of about 31%, compared to 2015 where the non-IFRS operating margin was 30.8%;
• 2016 non-IFRS EPS of about €2.40 to €2.45, representing a growth objective of about 7 to 9%, as reported, and currently embedding about 2 percentage points of currency headwinds;
• Objectives are based upon exchange rate assumptions of US$1.15 per €1.00 for the 2016 fourth quarter and US$1.12 per €1.00 for the full year; and JPY120.0 per €1.00 for the fourth quarter and JPY120.8 per €1.00 for the full year before hedging.

The Company’s objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.

The 2016 non-IFRS objectives set forth above do not take into account the following accounting elements and are estimated based upon the 2016 principal currency exchange rates above: deferred revenue write-downs estimated at approximately €8 million, share-based compensation expense, including related social charges, estimated at approximately €79 million and amortization of acquired intangibles estimated at approximately €154 million. The above objectives also do not include any impact from other operating income and expense, net principally comprised of acquisition, integration and restructuring expenses, from one-time items included in financial revenue and from one-time tax restructuring gains and losses. Finally, these estimates do not include any new stock option or share grants, or any new acquisitions or restructurings completed after October 25, 2016.

Today’s Webcast and Conference Call Information

Today, Tuesday, October 25, 2016, Dassault Systèmes will first host a meeting in London, which will be simultaneously webcasted at 8:30 AM London time/ 9:30 AM Paris time and will then also host a conference call at 9:00 AM New York time/ 2:00 PM London time/ 3:00 PM Paris time. The webcasted meeting and conference call will be available via the Internet by accessing http://www.3ds.com/investors/. Please go to the website at least 15 minutes prior to the webcast or conference call to register, download and install any necessary audio software. The webcast and conference call will be archived for 1 year.

Additional investor information can be accessed at http://www.3ds.com/investors/ or by calling Dassault Systèmes’ Investor Relations at 33.1.61.62.69.24.

Key Investor Relations Events

Fourth Quarter 2016 Earnings, February 2, 2017

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 2016 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 and in the Risk Factors section of the Company’s most recent Document de Référence , 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.