Acquisitions

In a separate press release issued today, Dassault Systèmes announced that it has entered into a definitive agreement to acquire QUINTIQ, a leading provider of on-premise and on-cloud supply chain and Operations Planning & Optimization software. QUINTIQ, whose offerings include production, logistics and workforce planning applications, is rated as a leader in the market by top industry analysts and its solutions are used today by 250 customers, at 1,000 sites, in more than 90 countries. QUINTIQ’S solutions are used to plan and schedule the most complex production supply chains at such manufacturers as Novelis, ASML, Lafarge, AkzoNobel, and ArcelorMittal. They also plan and optimize some of the most complex logistics operations, including DHL, Walmart, DB Schenker and TNT. QUINTIQ is enabling full operations planning at Brussels Airport, KLM, Canadian National and the Federal Aviation Administration. QUINTIQ is differentiated by leading optimization technology; a platform approach to covering long-term strategic to day-of-operational planning; and capabilities which go beyond supply chain to encompass full operations planning and optimization. The proposed acquisition is expected to be completed in the Fall of 2014 for cash consideration of approximately €250 million.

On July 11, 2014, Dassault Systèmes announced the acquisition of SIMPACK, the technology leader in multi-body simulation technologies and solutions. With the acquisition of SIMPACK, based near Munich, Germany, Dassault Systèmes is expanding its SIMULIA realistic multi-physics simulation technology portfolio to include multi-body mechatronic systems, from virtual concept validation to the real-time experience. SIMPACK has more than 130 customers in the energy, automotive, and rail industries, including Alstom, Bombardier, BMW, Daimler, Honda, Jaguar Land Rover, MAN, and Vestas.

On April 29, 2014, Dassault Systèmes completed the acquisition of Accelrys. Under the terms of the agreement signed in January 2014, the Company launched and successfully completed a tender offer for all outstanding shares of Accelrys, for cash consideration of approximately €541.5 million.

Customer Announcements

On June 17, 2014 the Company announced that BNP Paribas Securities Services selected Dassault Systèmes’ 3DEXPERIENCE platform and its “Innovation Factory” industry solution experience to enhance product management and accelerate product development. The 3DEXPERIENCE platform will give BNP Paribas Securities Services’ teams access to a dedicated product lifecycle management solution centralizing product development information from conception to launch.

On June 6, 2014 the Company announced that Barilla is adopting Dassault Systèmes’ 3DEXPERIENCE platform based on the V6 architecture to digitally orchestrate product labeling worldwide. Barilla, the global leader in the pasta industry, chose the Company’s “Perfect Package” industry solution experience to improve the package labeling creation process across Barilla’s worldwide organization. With the artwork and labeling capability of “Perfect Package”, Barilla has streamlined label design and approval, reduced artwork design time and improved regulatory compliance.

On April 24, 2014 Dassault Systèmes announced that the Offshore & Engineering division of Hyundai Heavy Industries (HHI) has chosen to deploy Dassault Systèmes' 3DEXPERIENCE platform and its marine and offshore industry solution experiences.

Business Outlook

Thibault de Tersant, Senior Executive Vice President, CFO, commented, “All in all it was a solid second quarter illustrating our multiple top-line growth drivers at work and providing us with reassurance that our goal to deliver double-digit organic new licenses revenue growth in constant currencies for the full year is tracking to our expectations.

“From a financial perspective, we were well aligned with our second quarter objectives across the board. Importantly, with our progress to date we are well advanced with respect to our full year target of about 150 basis points in organic non-IFRS operating margin expansion. Our steady focus on enhancing the efficiency of our global operations through process enhancements is driving significant organic operating margin improvements and helping mitigate acquisition dilution.

“Turning to our outlook, we are reaffirming our 2014 financial objectives, updating them for the inclusion of the recent SIMPACK acquisition, and with respect to earnings per share, reflecting the two-for-one stock split effected in July.”

The Company’s third quarter and full year 2014 financial objectives, including the recently completed acquisition of SIMPACK, are as follows:

• Third quarter 2014 non-IFRS total revenue objective of about €560-570 million based upon the exchange rates assumptions below, representing a variation of about 16% to 18% excluding currency effects; non-IFRS operating margin of about 28-29%; and non-IFRS EPS of about €0.83-0.88, or €0.41 to €0.44 on a split-adjusted basis;
• 2014 non-IFRS revenue growth objective range of about 14% to 15% in constant currencies (€2.29 to €2.30 billion based upon the 2014 currency exchange rate assumptions below);
• 2014 non-IFRS operating margin of about 29.5-30%, reflecting an increase before currency effects in the organic operating margin compared to 2013 of about 150 basis points;
• 2014 non-IFRS EPS range of about €3.50 or €1.75 on a split-adjust basis, essentially stable compared to 2013; excluding the estimated net negative currencies impact, the non-IFRS EPS objective represents an estimated 8% growth compared to 2013.
• Objectives are based upon exchange rate assumptions of US$1.35 per €1.00 and JPY140 per €1.00 for the 2014 third quarter and US$1.36 per €1.00 and JPY140 per €1.00 for the fiscal year.