Dassault Systèmes Reports Q4 and FY Results, Addressable Market Expansion and Introduction of Broad Cloud Offering

“Looking at the full year 2014, several encouraging signs and offer introductions lead us to target double-digit new licenses revenue growth in constant currencies. These factors include SOLIDWORKS positive seat unit increase of 5%, high growth countries and Asia’s renewed growth and the level of V6 transactions in the fourth quarter as well as the introduction of 3DEXPERIENCE R2014x. At the EPS level, our non-IFRS guidance takes into account a two percentage point increase in the tax rate and reflects a heightened currency impact due to the sharp decrease in the value of the yen which is not hedged for 2014. However, without these two factors, we would have guided close to a double-digit non-IFRS EPS growth rate.

“In terms of profitability, our operational improvements drove an increase of our organic operating margin in 2013 and enabled us to offset the dilution from acquisitions, resulting in a stable reported non-IFRS operating margin of 31.5% in 2013. We plan to continue on this path, and are estimating an organic increase in our non-IFRS operating margin of approximately 150 basis points in 2014, a major effort to help offset acquisition dilution and yen impact.”

The Company’s first quarter and full year 2014 financial objectives, including RTT, are as follows:

  • First quarter 2014 non-IFRS total revenue objective of about €490-500 million based upon the exchange rates assumptions below, representing a variation of about 5% to 7% excluding currency effects; non-IFRS operating margin of about 24-25%; and non-IFRS EPS of about €0.60-0.65, reflecting an estimated €0.11 impact from a higher effective tax rate and negative currency effects;
  • 2014 non-IFRS revenue growth objective range of about 10% to 11% in constant currencies (€2.21 to €2.23 billion based upon the 2014 currency exchange rate assumptions below);
  • 2014 non-IFRS operating margin of about 30-31%, reflecting an increase before currency effects in organic operating margin compared to 2013 and incorporating estimated dilution from 2013 announced acquisitions, combined with the full impact of the yen depreciation of approximately 250 basis points;
  • 2014 non-IFRS EPS range of about €3.40 to €3.50, representing a variation of about (-3%) to 0%;
  • Objectives are based upon exchange rate assumptions of US$1.40 per €1.00 and JPY140 per €1.00 for the 2014 first quarter and US$1.36 per €1.00 and JPY140 per €1.00 for the fiscal year.

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 2014 non-IFRS objectives set forth above do not take into account the following accounting elements and are estimated based upon the 2014 currency exchange rates above: share-based compensation expense estimated at approximately €22 million and amortization of acquired intangibles estimated at approximately €102 million. The above objectives do not include any impact from other operating income and expense, net principally comprised of acquisition, integration and restructuring expenses. Finally, these estimates do not include any new stock option or share grants, or any new acquisitions or restructurings completed after February 6, 2014. The Company’s non-IFRS financial objectives for 2014 include RTT, while the above non-IFRS adjustments do not take into account the impact of the RTT acquisition, for which accounting elements will be included in the 2014 first quarter earnings announcement.

Today’s Webcast and Conference Call Information

Today, Thursday, February 6, 2014, Dassault Systèmes will first host a meeting in Paris, which will be simultaneously webcasted at 9:30 AM London time/10:30 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 30 days.

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.

2014 Key Investor Relations Events

First Quarter 2014 Earnings, April 24, 2014
2014 Capital Markets Day, June 13, 2014
Second Quarter 2014 Earnings, July 24, 2014
Third Quarter 2014 Earnings, October 23, 2014

Important Information

The tender offer described in this document has not yet commenced, and this material is neither an offer to purchase nor a solicitation of an offer to sell shares of Accelrys’ common stock. At the time the tender offer is commenced, Dassault Systèmes will file a tender offer statement with the United States Securities and Exchange Commission (the “SEC”). Accelrys’ stockholders are strongly advised to read these documents that will be filed with the SEC, because they will contain important information that Accelrys’ stockholders should consider before tendering their shares. These documents will be available for free at the SEC’s website ( http://www.sec.gov ) or by directing a request to Dassault Systèmes, 10 rue Marcel Dassault, CS 40501, 78946 Vélizy-Villacoublay, Cedex, France.

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