- For the year ended December 31, 2016, IFRS total revenue increased 8%. Non-IFRS total revenue increased 7%, with software revenue growth of 7% and services and other revenue growth of 7%. Excluding acquisitions, total revenue and software revenue growth would have been 6%. 3DEXPERIENCE implementation engagements were among the principal contributors to the increase in services and other revenue. (All growth rates in constant currencies.)
- The fastest growing industries in 2016 included Industrial Equipment and Business Services in Core Industries and High Tech, Consumer Goods-Retail, Energy, Process & Utilities and Marine & Offshore in Diversification Industries. During 2016, Diversification Industries represented 31% of total software revenue compared to 30% in 2015.
- From a regional perspective, Asia non-IFRS software revenue increased 8%, led by China with sharply higher growth, and India. In Europe non-IFRS software revenue growth of 8% was led by France and Southern Europe with double-digit software revenue growth and solid contribution across all geographies. In the Americas, non-IFRS software revenue increased 6% with double-digit growth in Latin America. Europe represented 43% of non-IFRS total software revenue, Americas 30% and Asia 27%. (All growth rates in constant currencies.)
- Non-IFRS software revenue increased 7%, on growth of both new licenses and recurring software revenue. New licenses revenue increased 5% on mixed results by geographies and industries. On a non-IFRS basis, recurring software revenue increased 8% and represented 71% of total software revenue in 2016. Maintenance subscription performance tracked well to the Company’s expectations across geographies, sales channels and brands. Rental subscription increased in all regions. (All growth comparisons are in constant currencies.)
- By product line and on a non-IFRS basis, SOLIDWORKS software revenue increased 12% reflecting improving new sales progressively through the year and strong recurring revenue growth. CATIA software revenue increased 4%, with its 3DEXPERIENCE software revenue up 42% and overall growth reflecting a product transition underway. Other Software increased 8% led by the Company’s simulation, manufacturing, and supply chain planning & optimization software (SIMULIA, DELMIA, and Quintiq, respectively) and well in line results for BIOVIA. (All growth comparisons are in constant currencies.)
- IFRS operating income increased 6% and non-IFRS operating income increased 8% to €957.7 million. The non-IFRS operating margin increased to 31.2% in 2016 from 30.8% in 2015, reflecting an underlying improvement of 70 basis points, offset in part by a net negative currency impact and acquisition dilution of 20 and 10 basis points, respectively.
- For the full year 2016 the IFRS effective tax rate was 31.6% compared to 35.9% for 2015. The non-IFRS effective tax rate decreased to 32.3% for 2016 compared to 34.4% for 2015. The decreases in both the IFRS and non-IFRS effective tax rates reflected both a tax reserve reversal in the 2016 first quarter and a reduction in the corporate statutory tax rate mainly in France.
- IFRS diluted net income per share increased 11%. Non-IFRS diluted net income per share increased 11% to €2.49, up from €2.25 in 2015. The Company noted that 2016 results included a 5 cents impact from a reversal of tax reserves in the first quarter. Currency exchange rates had a net negative impact on IFRS and non-IFRS diluted net income per share growth of 100 basis points.
Cash Flow and Other Financial Highlights
Net operating cash flow was €621.7 million for the year ended December 31, 2016, compared to €633.3 million in 2015, reflecting higher net income of 11%, offset principally by higher tax downpayments in 2016.
The Company’s uses of cash for the full year 2016 were principally for payment for acquisitions net of cash acquired of €262.7 million, cash dividends of €101.9 million, share repurchases of €127.3 million, and capital expenditures of €56.7 million. The Company received cash for stock options exercised of €26.8 million.
Dassault Systèmes’ net financial position totaled €1.49 billion at December 31, 2016, compared to €1.35 billion at December 31, 2015, reflecting an increase in cash, cash equivalents and short-term investments to €2.49 billion from €2.35 billion, with long-term debt unchanged at €1.00 billion.
Summary of Recent Business, Technology and Customer Highlights
Acquisitions
On December 9, 2016, Dassault Systèmes announced the completion of
the acquisition of Madrid-based Next Limit Dynamics, developer of Xflow
technology, to enhance its industry solution experiences for
multiphysics simulation on the 3DEXPERIENCE platform and to strengthen
its presence in the strategic computational fluid dynamics (CFD) market.
Next Limit Dynamics’ software solutions are used by simulation analysts
for accurate and robust simulation of highly dynamic fluid flow in order
to solve challenging CFD problems faster than traditional methods.
Customers include Airbus, AISIN AW, Caterpillar, Doosan, Ford, Google X,
Honda, Mitsubishi, NASA, Safran Helicopter Engines and Toyota.
