^*In constant currencies

Second Quarter 2018 versus 2017 Financial Comparisons on an IAS 18 Basis
(“IAS 18 IFRS and IAS 18 non-IFRS”)

• On an IAS 18 basis, total revenue increased 8% (IFRS and non-IFRS). Second quarter financial results include EXA Corporation, an acquisition completed on November 17, 2017. Excluding acquisitions, IAS 18 non-IFRS total revenue and software revenue increased 6%. (All growth rates are in constant currencies.)
• On an IAS 18 basis and in constant currencies: Software revenue increased 9% (IFRS and non-IFRS). Licenses and other software revenue grew 8% (IFRS and non-IFRS), with double-digit growth for CATIA, SOLIDWORKS, ENOVIA, DELMIA and GEOVIA. Non-IFRS Recurring revenue, comprised of Subscription and Support revenue, increased 9% reflecting double-digit growth in Subscription revenue with the acquisition of EXA, and continued high Support renewal rates.
• On a regional and IAS 18 basis: Asia non-IFRS software revenue increased 14% on strong growth in China, South Asia and India. In Europe non-IFRS software revenue increased 6% led by Southern Europe and Russia. In the Americas, non-IFRS software revenue increased 7%, led by Latin America and well supported by North America. High Growth Countries non-IFRS software revenue increased 25% on broad-based growth. (All growth rates are in constant currencies.)
• On an IAS 18 basis, 3DEXPERIENCE software revenue was up 18% in the second quarter of 2018 in constant currencies, with the largest transactions recorded in Aerospace & Defense, High Tech, Transportation & Mobility, Energy, Process & Utilities, Marine & Offshore and Consumer Packaged Goods.
• Services revenue increased 4% in constant currencies (IAS 18 IFRS and non-IFRS) with strong growth in 3DEXPERIENCE services activity.
• IAS 18 IFRS operating income increased 5.2%. IAS 18 non-IFRS operating income totaled €253.6 million, representing an increase of 4.0% as reported and 10% in constant currencies. The IAS 18 non-IFRS operating margin was 30.2%, compared to 30.1% in the year-ago quarter, reflecting underlying organic improvement of 100 basis points, off-setting negative currency effects of 40 basis points and acquisition dilution of about 50 basis points.
• Principally reflecting the U.S. Tax Reform Act of 2017, the Company’s IAS 18 IFRS and non-IFRS effective tax rates decreased to 25.6% and 27.8%, respectively, in the 2018 second quarter compared to 33.5% and 34.5%, respectively, in the 2017 second quarter. The second quarter effective tax rates also benefited from reversal of reserves following completion of a tax audit.

• IAS 18 non-IFRS financial revenue totaled €5.0 million, compared to € (0.7) million in the year-ago period on higher net interest income and lower currency exchange losses.
• IAS 18 IFRS diluted net income per share increased 8% or 14% in constant currencies. IAS 18 non-IFRS diluted net income per share totaled €0.72, increasing 16% or 22% at constant currency.

2018 First Half Financial Summary (Unaudited)
In millions of Euros, except per share data		IFRS under IFRS15		IFRS under IAS18						Non-IFRS under IFRS15		Non-IFRS under IAS18
				YTD 2018		Change		Change in cc*				YTD 2018		Change		Change in cc*
YTD 2018 Total Revenue		1,646.4		1,606.6		3%		9%		1,651.3		1,611.4		2%		9%
YTD 2018 Software Revenue		1,475.2		1,435.4		3%		10%		1,480.0		1,440.2		3%		9%
YTD 2018 Services Revenue		171.2		171.2		-4%		2%		171.2		171.2		-4%		2%
YTD 2018 Operating Margin		21.1%		19.1%		+0.7pts				30.4%		28.7%		+0.5pts
YTD 2018 EPS		1.02		0.91		12%		22%		1.41		1.30		13%		23%
Total Software Revenue in millions of Euros		IFRS under IFRS15		IFRS under IAS18						Non-IFRS under IFRS15		Non-IFRS under IAS18
				YTD 2018		YTD 2017		Change in cc*				YTD 2018		YTD 2017		Change in cc*
Americas		417.7		417.2		425.7		9%		420.5		420.0		428.9		9%
Europe		631.9		602.9		578.2		7%		632.4		603.4		584.5		6%
Asia		425.6		415.3		384.9		15%		427.1		416.7		385.5		15%

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19  Next Page »