Today’s Webcast and Conference Call Information
Today, Tuesday, July 25, 2017, Dassault Systèmes will first host from Paris a webcasted meeting at 9:00 AM London time/ 10:00 AM Paris time and will then 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 one 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
Third Quarter 2017 Earnings, October 25, 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 2017 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. Further, 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. 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 2016 Document de Référence (Annual Report) filed with the AMF (French Financial Markets Authority) on March 22, 2017, and also available on the Company’s website www.3ds.com.
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 2017 third quarter and US$1.12 per €1.00 for the full year 2017 as well as an average Japanese yen to euro exchange rate of JPY130 to €1.00 for the third quarter and JPY125.9 to €1.00 for the full year 2017 before hedging; however, currency values fluctuate, and the Company’s results of operations may be significantly affected by changes in exchange rates.
Non-IFRS Financial 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 2016 Document de Référence filed with the AMF on March 22, 2017.
In the tables accompanying this press release the Company sets forth its supplemental non-IFRS figures for revenue, operating income, operating 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.
Information in Constant Currencies
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.
This press release constitutes the quarterly financial information required by article L.451-1-2 IV of the French Monetary and Financial Code (Code Monétaire et Financier).
About Dassault Systèmes
Dassault Systèmes, the 3DEXPERIENCE Company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported. Dassault Systèmes’ collaborative solutions foster social innovation, expanding possibilities for the virtual world to improve the real world. The group brings value to over 220,000 customers of all sizes, in all industries, in more than 140 countries. For more information, visit www.3ds.com.
3DEXPERIENCE, the Compass logo and the 3DS logo, CATIA, SOLIDWORKS, ENOVIA, DELMIA, SIMULIA, GEOVIA, EXALEAD, 3D VIA, BIOVIA, NETVIBES and 3DEXCITE are registered trademarks of Dassault Systèmes or its subsidiaries in the US and/or other countries.
(Tables to Follow)
TABLE OF CONTENTS
Non-IFRS key figures
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cash flow statements
IFRS – non-IFRS reconciliation
DASSAULT SYSTEMES
NON-IFRS KEY FIGURES
(unaudited; in millions of Euros, except per share data, headcount and exchange rates)
Non-IFRS key figures exclude the effects of adjusting the carrying value of acquired companies’ deferred revenue, share-based compensation expense and related social charges, amortization of acquired intangible assets, other operating income and expense, net, certain one-time financial revenue items and the income tax effects of these non-IFRS adjustments.
Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.
In millions of Euros, except per share data and percentages | Three months ended | Six months ended | |||||||||||||||||
June 30,
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June 30,
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Change |
Change
|
June 30,
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June 30,
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Change |
Change
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Non-IFRS Revenue | € 810.6 | € 754.0 | 8% | 6% | € 1,576.3 | € 1,447.5 | 9% | 7% | |||||||||||
Non-IFRS Revenue breakdown by activity | |||||||||||||||||||
Software revenue | 722.7 | 669.4 | 8% | 7% | 1,398.8 | 1,283.3 | 9% | 7% | |||||||||||
of which new licenses and other software-related revenue | 211.8 | 194.5 | 9% | 8% | 384.8 | 354.7 | 8% | 7% | |||||||||||
of which periodic licenses, maintenance | 510.9 | 474.9 | 8% | 6% | 1,014.0 | 928.6 | 9% | 7% | |||||||||||
Services revenue | 87.9 | 84.6 | 4% | 3% | 177.5 | 164.2 | 8% | 7% | |||||||||||
Non-IFRS software revenue breakdown by product line | |||||||||||||||||||
CATIA software revenue | 249.7 | 244.0 | 2% | 1% | 486.2 | 465.5 | 4% | 3% | |||||||||||
ENOVIA software revenue | 84.4 | 81.7 | 3% | 2% | 158.0 | 152.6 | 4% | 2% | |||||||||||
SOLIDWORKS software revenue | 176.7 | 152.2 | 16% | 14% | 350.9 | 303.7 | 16% | 13% | |||||||||||
Other software revenue | 211.9 | 191.5 | 11% | 9% | 403.7 | 361.5 | 12% | 9% | |||||||||||
Non-IFRS Revenue breakdown by geography | |||||||||||||||||||
Americas | 258.1 | 232.9 | 11% | 8% | 493.9 | 449.3 | 10% | 6% | |||||||||||
Europe | 337.1 | 320.2 | 5% | 6% | 660.1 | 613.2 | 8% | 8% | |||||||||||
Asia | 215.4 | 200.9 | 7% | 5% | 422.3 | 385.0 | 10% | 6% | |||||||||||
Non-IFRS operating income | € 243.8 | € 229.2 | 6% | € 444.5 | € 410.9 | 8% | |||||||||||||
Non-IFRS operating margin | 30.1% | 30.4% | 28.2% | 28.4% | |||||||||||||||
Non-IFRS net income attributable to shareholders | € 159.4 | € 146.3 | 9% | € 295.1 | € 277.4 | 6% | |||||||||||||
Non-IFRS diluted net income per share | € 0.62 | € 0.57 | 9% | € 1.15 | € 1.08 | 6% | |||||||||||||
Closing headcount | 15,456 | 14,310 | 8% | 15,456 | 14,310 | 8% | |||||||||||||
Average Rate USD per Euro | 1.10 | 1.13 | -3% | 1.08 | 1.12 | -4% | |||||||||||||
Average Rate JPY per Euro | 122.6 | 121.9 | 1% | 121.8 | 124.4 | -2% | |||||||||||||
* In constant currencies |
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DASSAULT SYSTEMES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IFRS) (unaudited; in millions of Euros, except per share data) |
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In millions of Euros, except per share data and
|
Three months ended | Six months ended | |||||||
June 30,
|
June 30
|
June 30,
|
June 30,
|
||||||
New licenses and Other software revenue | 211.8 | 194.5 | 384.8 | 354.1 | |||||
Periodic and Maintenance revenue | 506.7 | 474.9 | 1,003.9 | 927.5 | |||||
Software revenue | 718.5 | 669.4 | 1,388.7 | 1,281.6 | |||||
Services revenue | 87.9 | 84.6 | 177.5 | 163.8 | |||||
Total Revenue | € 806.4 | € 754.0 | € 1,566.2 | € 1,445.4 | |||||
Cost of software revenue (excluding amortization
|
(38.0) | (37.7) | (78.4) | (75.2) | |||||
Cost of services and other revenue | (79.0) | (78.7) | (161.8) | (155.8) | |||||
Research and development | (156.2) | (138.7) | (305.9) | (269.2) | |||||
Marketing and sales | (258.5) | (232.2) | (518.3) | (460.0) | |||||
General and administrative | (61.5) | (56.0) | (121.8) | (110.4) | |||||
Amortization of acquired intangibles | (39.3) | (38.2) | (80.5) | (77.4) | |||||
Other operating income and expense, net | (4.5) | (11.1) | (10.6) | (13.5) | |||||
Total Operating Expenses | (637.0) | (592.6) | (1,277.3) | (1,161.5) | |||||
Operating Income | € 169.4 | € 161.4 | € 288.9 | € 283.9 | |||||
Financial revenue and other, net | 15.3 | (7.6) | 22.5 | (16.8) | |||||
Income before income taxes | 184.7 | 153.8 | 311.4 | 267.1 | |||||
Income tax expense | (61.8) | (50.9) | (102.1) | (73.5) | |||||
Net Income | € 122.9 | € 102.9 | € 209.3 | € 193.6 | |||||
Non-controlling interest | 0.1 | (1.6) | (1.3) | (2.4) | |||||
Net Income attributable to equity holders of
|
€ 123.0 | € 101.3 | € 208.0 | € 191.2 | |||||
Basic net income per share | 0.48 | 0.40 | 0.82 | 0.75 | |||||
Diluted net income per share | € 0.48 | € 0.39 | € 0.81 | € 0.74 | |||||
Basic weighted average shares outstanding (in
|
254.5 | 253.8 | 254.2 | 253.8 | |||||
Diluted weighted average shares outstanding (in
|
257.9 | 257.3 | 257.1 | 257.3 | |||||
IFRS revenue variation as reported and in constant currencies |
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|
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Three months ended June 30, 2017 | Six months ended June 30, 2017 | ||||||||
Change* | Change in cc** | Change* | Change in cc** | ||||||
IFRS Revenue | 7% | 6% | 8% | 6% | |||||
IFRS Revenue by activity | |||||||||
Software revenue | 7% | 6% | 8% | 6% | |||||
Services Revenue | 4% | 3% | 8% | 7% | |||||
IFRS Software Revenue by product line | |||||||||
CATIA software revenue | 2% | 1% | 4% | 3% | |||||
ENOVIA software revenue | 3% | 2% | 4% | 2% | |||||
SOLIDWORKS software revenue | 16% | 14% | 16% | 13% | |||||
Other software revenue | 8% | 7% | 9% | 7% | |||||
IFRS Revenue by geography | |||||||||
Americas | 10% | 7% | 9% | 6% | |||||
Europe | 4% | 5% | 7% | 7% | |||||
Asia | 7% | 5% | 10% | 6% | |||||
*Variation compared to the same period in the prior year. **In constant currencies |
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DASSAULT SYSTEMES CONDENSED CONSOLIDATED BALANCE SHEETS (IFRS) (unaudited; in millions of Euros) |
|||||
In millions of Euros |
June 30,
|
December 31,
|
|||
ASSETS | |||||
Cash and cash equivalents | 2,769.2 | 2,436.7 | |||
Short-term investments | 48.2 | 56.1 | |||
Accounts receivable, net | 610.3 | 820.4 | |||
Other current assets | 264.2 | 257.2 | |||
Total current assets | 3,691.9 | 3,570.4 | |||
Property and equipment, net | 156.7 | 135.4 | |||
Goodwill and Intangible assets, net | 2,770.6 | 2,926.5 | |||
Other non-current assets | 286.5 | 310.7 | |||
Total Assets | € 6,905.7 | € 6,943.0 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
Accounts payable | 137.3 | 144.9 | |||
Unearned revenues | 928.7 | 853.1 | |||
Other current liabilities | 501.0 | 467.6 | |||
Total current liabilities | 1,567.0 | 1,465.6 | |||
Long-term debt | 1,000.0 | 1,000.0 | |||
Other non-current obligations | 545.5 | 594.6 | |||
Total long-term liabilities | 1,545.5 | 1,594.6 | |||
Non-controlling interests | 2.5 | 22.6 | |||
Parent shareholders' equity | 3,790.7 | 3,860.2 | |||
Total Liabilities and Shareholders' equity | € 6,905.7 | € 6,943.0 | |||
DASSAULT SYSTEMES CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (IFRS) (unaudited; in millions of Euros) |
|||||||||||||
In millions of Euros |
Three months ended |
Six months ended | |||||||||||
June 30,
|
June 30,
|
Change |
June 30,
|
June 30,
|
Change | ||||||||
Net Income attributable to equity holders of the parent | 123.0 | 101.3 | 21.7 | 208.0 | 191.2 | 16.8 | |||||||
Non-controlling interest | (0.1) | 1.6 | (1.7) | 1.3 | 2.4 | (1.1) | |||||||
Net Income | 122.9 | 102.9 | 20.0 | 209.3 | 193.6 | 15.7 | |||||||
Depreciation of property & equipment | 11.1 | 10.9 | 0.2 | 22.9 | 21.4 | 1.5 | |||||||
Amortization of intangible assets | 41.3 | 40.5 | 0.8 | 84.6 | 81.7 | 2.9 | |||||||
Other non cash P&L Items | 2.6 | 0.5 | 2.1 | 10.4 | (8.8) | 19.2 | |||||||
Changes in working capital | 66.7 | (15.0) | 81.7 | 265.2 | 161.2 | 104.0 | |||||||
Net Cash provided by operating activities | € 244.6 | € 139.8 | € 104.8 | € 592.4 | € 449.1 | € 143.3 | |||||||
Additions to property, equipment and intangibles | (27.4) | (9.6) | (17.8) | (45.8) | (18.4) | (27.4) | |||||||
Payments for acquisition of businesses, net of cash acquired | (7.6) | (11.2) | 3.6 | (8.0) | (11.2) | 3.2 | |||||||
Sale (purchase) of short term investments, net | 12.5 | (1.0) | 13.5 | 3.7 | 19.8 | (16.1) | |||||||
Investments, loans and others | - | (0.5) | 0.5 | 6.4 | 0.6 | 5.8 | |||||||
Net Cash provided by (used in) investing activities | (€ 22.5) | (€ 22.3) | (€ 0.2) | (€ 43.7) | (€ 9.2) | (€ 34.5) | |||||||
Acquisition of non-controlling interests | (14.1) | - | (14.1) | (14.1) | - | (14.1) | |||||||
(Purchase) Sale of treasury stock | (47.9) | (9.0) | (38.9) | (44.8) | (43.3) | (1.5) | |||||||
Proceeds from exercise of stock-options | 16.5 | 7.3 | 9.2 | 21.8 | 10.5 | 11.3 | |||||||
Cash dividend paid | (51.3) | (100.1) | 48.8 | (51.3) | (101.9) | 50.6 | |||||||
Net Cash provided by (used in) financing activities | (€ 96.8) | (€ 101.8) | € 5.0 | (€ 88.4) | (€ 134.7) | € 46.3 | |||||||
Effect of exchange rate changes on
|
(121.5) | 28.1 | (149.6) | (127.8) | 0.1 | (127.9) | |||||||
Increase (decrease) in cash and cash equivalents | € 3.8 | € 43.8 | (€ 40.0) | € 332.5 | € 305.3 | € 27.2 | |||||||
Cash and cash equivalents at beginning of period | € 2,765.4 | € 2,542.0 | € 2,436.7 | € 2,280.5 | |||||||||
Cash and cash equivalents at end of period | € 2,769.2 | € 2,585.8 | € 2,769.2 | € 2,585.8 | |||||||||
DASSAULT SYSTEMES