Dassault Systèmes Initiates a 2023 Non-IFRS EPS Objective of €6.00

Regulatory News:

Dassault Systèmes (Euronext Paris: #13065, DSY.PA), the 3DEXPERIENCE Company, is unveiling a five-year plan targeting a 2023 non-IFRS EPS objective of about €6.00 at its 2018 Capital Market Day which is being held today, Friday, June 15, 2018.

The Capital Markets Day, dedicated to analysts and investors, is hosted at the Company’s headquarters in Vélizy-Villacoublay, France, and includes presentations by the senior executive management team. The sessions are being recorded and will be available for replay following completion of the Capital Markets Day by accessing http://www.3ds.com/investors/

"Across the world an Industry Renaissance is emerging bringing profound changes to industries, companies and individuals. This is not simply a digitalization of yesterday’s processes, but a complete reimagining of what is possible combining the real and the virtual worlds,” commented Bernard Charlès, Vice Chairman and Chief Executive Officer.

"The 21^st century is defined as high-added value networks in which the real and the virtual merge to create, produce and exchange sustainable experiences. Industrial firms must see themselves as platforms. In this new economy, organized around digital marketplaces where supply and demand meet both globally and locally, business leadership hinges on the ability to acquire and share knowledge and know-how.”

Pascal Daloz, Senior Vice President, CFO and Chief Strategy Officer, commented, "This sea-change underway is well visible with the accelerating 3DEXPERIENCE traction we are seeing with both industry leaders and industry shakers. Our current addressable software market of $28 billion places the customer experience at the heart of sustainable innovation processes for the 12 industries we work with.

"We are initiating a 2018-2023 plan to double our non-IFRS EPS, to a goal of about €6.00. From a revenue perspective, key growth drivers already in action include the 3DEXPERIENCE software cycle, our expanding global footprint bringing diversification and balance by industry and geography, and new usage opportunities with the Cloud. Complementing our key growth drivers are new initiatives, including our recently introduced Marketplace and potential acquisitions aligned with our purpose. Both of these can positively animate our 2023 non-IFRS EPS objective and importantly set in motion future growth drivers beyond 2023.”

2018 Key Investor Relations Events

Second Quarter 2018 Earnings: July 25, 2018
Third Quarter 2018 Earnings: October 24, 2018
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 multi-year 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.

With respect to the Company’s 2018-2023 non-IFRS EPS objectives, the Company has assumed an average US dollar to euro exchange rate of US$1.22 per €1.00 over this period, an average Japanese yen to euro exchange rate of JPY 134.5 to €1.00 as well as a continuation of current exchange rates for other major currencies in which the Company transacts business; 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 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 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.

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.

Information on Industrial Sectors

The Company’s global customer base includes companies in 12 industrial sectors: Transportation & Mobility; Industrial Equipment; Aerospace & Defense; Financial & Business Services; High-Tech; Life Sciences; Energy, Process & Utilities; Consumer Goods & Retail; Natural Resources; Architecture, Engineering & Construction; Consumer Packaged Goods & Retail and Marine & Offshore. Commencing in 2012 we implemented an industry go-to-market strategy with the dual objectives of broadening and deepening our presence in our largest industries as well as increasing the contribution from a diversified set of industrial sectors. "Diversification Industries” include: Architecture, Engineering & Construction; Consumer Goods & Retail; Consumer Packaged Goods & Retail; Energy, Process & Utilities; Finance Business Services; High-Tech; Life Sciences; Marine & Offshore; and Natural Resources. "Core Industries” include: Transportation & Mobility, Industrial Equipment, Aerospace & Defense and a portion of Business Services.

3DEXPERIENCE Licenses and Software Contribution

To measure the progressive penetration of 3DEXPERIENCE software, the Company utilizes the following ratios: a) for Licenses revenue, the Company calculates the percentage contribution by comparing total 3DEXPERIENCE Licenses revenue to Licenses revenue for all product lines except SOLIDWORKS and acquisitions ("related Licenses revenue”); and, b) for software revenue, the Company calculates the percentage contribution by comparing total 3DEXPERIENCE software revenue to software revenue for all product lines except SOLIDWORKS and acquisitions ("related software revenue”).

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.

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