Summary of Recent Business, Technology and Customer Announcements
Customers
On October 17, 2018, Dassault Systèmes announced that it is helping enable GE Aviation Hamble to drive innovation and efficiency across the product development lifecycle of aerostructures through the implementation of its 3DEXPERIENCE platform. The 3DEXPERIENCE platform is helping GE Aviation Hamble to develop a digital thread to enable continuity and collaboration across the business. This includes requirements definition, design, analysis, simulation, manufacturing, qualification and supporting the development of new manufacturing technologies and techniques.
On July 25, 2018, Dassault Systèmes announced that ExxonMobil has selected the 3DEXPERIENCE platform as part of its digital transformation. This implementation will support the aggregation of engineering data and derive greater value from ExxonMobil’s data across a multitude of tools. A long-time customer of Dassault Systèmes’ simulation, materials science and supply chain planning applications, ExxonMobil is the largest publicly traded energy company in the world and uses technology and innovation to help meet growing energy needs. ExxonMobil will now use the “Capital Facilities Information Excellence” industry solution experience based on the 3DEXPERIENCE platform. In a unified digital environment, ExxonMobil employees can collaborate in real time. Engineers, operations and maintenance personnel will be able to access a single source of information describing the complex assets for which they have responsibility, in order to improve business process control and performance.
Corporate:
On September 14, 2018, Dassault Systèmes announced the launch of SOLIDWORKS 2019, the latest release of its portfolio of 3D design and engineering applications. SOLIDWORKS 2019 delivers enhancements and new features that help millions of innovators improve the product development process to get products into production faster, and create new categories of experiences for new categories of customers in today’s Industry Renaissance. Among the new features are enhanced Large Design Review for greater design flexibility and SOLIDWORKS Extended Reality to experience designs in Virtual Reality and Augmented Reality.
Today’s Webcast and Conference Call Information
Today, Wednesday, October 24, 2018, Dassault Systèmes will first host from London a webcasted meeting at 8:30 AM London Time/ 9:30 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 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
Fourth Quarter 2018 Earnings: February 6, 2019
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 2018 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 2017 Document de Référence (Annual Report) filed with the AMF (French Financial Markets Authority) on March 21, 2018 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$1.20 per €1.00 for the 2018 fourth quarter as well as an average Japanese yen to euro exchange rate of JPY135 to €1.00 for the 2018 fourth quarter 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 2017 Document de Référence filed with the AMF on March 21, 2018.
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.
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, 3DVIA, BIOVIA, NETVIBES and 3DEXCITE are registered trademarks of Dassault Systèmes or its subsidiaries in the US and/or other countries.
(Tables to Follow)
APPENDIX TABLE OF CONTENTS
(Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.)
Glossary of Definitions
IAS 18
Non-IFRS Financial Information
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cash flow statements
IFRS – non-IFRS reconciliation
IFRS 15
Reconciliation tables IFRS 15 and IAS 18
Reconciliation P&L IFRS 15 and IAS 18
Reconciliation Balance sheet IFRS 15 and IAS 18
Reconciliation Cash flow IFRS 15 and IAS 18
Non-IFRS Financial Information
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cash flow statements
IFRS – non-IFRS reconciliation
DASSAULT SYSTEMES
Glossary of Definitions
Information in Constant Currencies
We have followed a long-standing policy of measuring our revenue performance and setting our revenue objectives exclusive of currency in order to measure in a transparent manner the underlying level of improvement in our total revenue and software revenue by type, industry, region and product lines. We believe it is helpful to evaluate our growth exclusive of currency impacts, particularly to help understand revenue trends in our business. Therefore, we provide percentage increases or decreases in our revenue and EPS (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 by us "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.
