Net operating cash flow increased to €450.9 million for 2011, compared to €408.3 million for 2010.

During 2011 the Company received cash of €233.4 million for stock options exercised and completed share repurchases in the amount of €226.7 million to offset share dilution from the exercise of options in connection with the 2011 expiration of several major ten-year stock option programs, paid cash dividends of €65.8 million, made additions to property, equipment and intangibles of €71.4 million and completed cash acquisitions and other investing activities of €39.7 million, net of cash acquired.

The Company’s net financial position, comprised of cash, cash equivalents and short-term investments less long-term debt and less the €200 million debt which has become short-term as of December 31, 2011, was €1.15 billion at December 31, 2011, compared to a net financial position of €845.7 million at December 31, 2010. The Company’s cash, cash equivalents and short-term investments totaled €1.42 billion and short-term and long-term debt totaled €228.9 million and €72.4 million, respectively at December 31, 2011 compared to €1.14 billion, €26.7 million and €293.4 million, respectively, at December 31, 2010.

Summary Business, Technology and Corporate Highlights

Dassault Systèmes Introduces Unique 3D Sketching Experience. CATIA Natural Sketch, a breakthrough 3D sketching experience, making sketching in 3D as intuitive as sketching on paper, was launched. CATIA Natural Sketch brings an experience that matches creative purposes while removing barriers towards 3D creation.

Medical Device Company Lumenis Unifies Engineering and Business Processes with Dassault Systèmes’ ENOVIA V6. Lumenis, the largest medical laser company in the world, has selected ENOVIA V6 to fully master the company’s engineering information and business processes. ENOVIA and its Life Sciences Accelerators will be implemented to respond to Lumenis’ aesthetic, ophthalmic, and surgical entities’ needs across its entire organization.

Pierre Fabre Laboratories Selects Dassault Systèmes’ V6 Platform. Pierre Fabre Laboratories has selected ENOVIA V6 Life Sciences solutions to accelerate time to market and improve product traceability.

Nikon Corporation Adopts Dassault Systèmes’ V6 Platform to Drive Designers’ Idea-Generation Process. Nikon’s Industrial Design Department has adopted V6 as its collaborative design platform. Nikon’s Industrial Design Department is expecting CATIA V6 to serve as the idea-generation support solution for its designers and as the driver to further enhance quality through higher design precision and will utilize the ENOVIA V6 collaborative platform to streamline the data-sharing process, strengthen security and promote more efficient data management.

Fisker Automotive Eco-Luxury Car Effort Achieves Electric Success With Dassault Systèmes PLM Solutions. Fisker Automotive is designing and developing the world’s first line of premium electric plug-in hybrids representing the company’s firm belief that environmentally conscious cars need not sacrifice passion, style, or performance. Fisker Automotive has relied upon CATIA for virtual design and ENOVIA for product data management and collaboration in the development of its Karma and Surf models. Fisker also employs Dassault Systèmes’ 3DVIA and SIMULIA solutions in its product development processes.

Capgemini Becomes A Dassault Systèmes Solutions Integrator. Capgemini, a world leader in IT consulting, technology services and outsourcing, and Dassault Systèmes have announced an alliance agreement with respect to the Company’s V6 solutions.

Business Outlook

Thibault de Tersant, Senior Executive Vice President and CFO, commented, “We had an excellent finish to 2011, led by CATIA with a high level of activity with customers in Germany, France and China.

“For the year in total, we delivered 20% new licenses revenue growth in constant currencies, driven by an excellent dynamic of our industry solutions in Automotive and Aerospace in our core markets, as well as in Energy, Construction and Business Services in our new target industries. We benefited from adoption of our PLM business system, with our customers expanding their usage for innovation and product portfolio management. We reached our 30% non-operating margin goal ahead of our initial timeline, and delivered non-IFRS earnings per share growth of 17%.

“Entering 2012, we see a good level of interest from our customers and key data points we track indicate a healthy demand environment. At the same time we think it is appropriate to take into account the potential for a more challenging economic backdrop around the world, including tighter credit markets, and so we have incorporated these factors in developing our baseline revenue objectives. We anticipate delivering a stable operating margin in comparison to 2011 which means we will continue to drive operating leverage in order to make internal investments in our businesses as well as offset potential dilution from acquisitions. All in all, we see a year of growth ahead even assuming less favorable market conditions.”

The Company’s initial 2012 financial objectives are as follows:

• First quarter 2012 non-IFRS initial total revenue objective of about €425 to €435 million, non-IFRS operating margin of about 28% and non-IFRS EPS of about €0.63 to €0.68;
• 2012 non-IFRS initial revenue growth objective range of about 5% to 7% in constant currencies; (€1.86 to €1.89 billion based upon the 2012 currency exchange rate assumptions below);
• 2012 non-IFRS operating margin of about 30%;
• 2012 non-IFRS initial EPS range of about €3.00 to €3.10, representing growth of about 3% to 6%;
• Objectives are based upon exchange rate assumptions for the 2012 first quarter and full year of US$1.40 per €1.00 and JPY115 per €1.00.