multi-year growth plan - dassault systèmes...the company’s current outlook for 2014 takes into...

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Multi-Year Growth Plan

Thibault DE TERSANT

Senior EVP, CFO

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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 2014 takes into consideration, among other things, an uncertain macroeconomic outlook, but if

global economic and business conditions further deteriorate, the Company’s business results may not develop as currently anticipated and

may drop below their earlier levels for an extended period of time. Furthermore, due to factors affecting sales of the Company’s products

and services as described above, 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.

In preparing such forward-looking statements, the Company has in particular assumed an average US dollar to euro exchange rate of

US$1.40 per €1.00 for the second quarter and US$1.37 per €1.00 for the full year as well as an average Japanese yen to euro exchange

rate of JPY140 to €1.00 for the 2014 second quarter and full year; with respect to its 2019 EPS objective the Company has assumed an

average US dollar to euro exchange rate of US$1.37, an average Japanese yen to euro exchange rate of JPY140 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.

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 2013 Document de Référence, filed with the AMF on March 28, 2014, and also available on the

Company’s website www.3ds.com.

Forward Looking Information

http://www.3ds.com/

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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 annual report for the year ended December 31, 2013 included in the Company’s 2013 Document de Référence filed

with the AMF on March 28, 2014.

When the Company believes it would be helpful for understanding trends in its business, the Company provides percentage increases or

decreases in its revenue (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 information is expressed herein "in constant currencies", the results of the

"prior" period have first been recalculated using the average exchange rates in the current period, and then compared with the results of

the comparable period in the current period.

With respect to its 2009-2014 EPS objective, revenue and earnings per share calculations in constant currencies are based upon taking

the estimated results for 2014 and recalculating them using the key exchange rate assumptions initially outlined when the Company

established its 2009-2014 growth plan.

Non-IFRS Information

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1 5-Year Look Back

2 Growth Strategy

3 2014-2019 Plan

Agenda

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2009-2013: Software Revenue Growth non-IFRS

* 09-13 DS Organic Software Revenue ex FX: +9%

0

1,000

2,000

2009 2010 2011 2012 2013

in €m

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2009-2013: Outpacing Competitors & Peers Growth*

0.90

1.00

1.10

1.20

1.30

1.40

1.50

1.60

2009 2010 2011 2012 2013

3DS

SAP

ADSK

PTC

* Total Revenue in USD

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DS Leader of the PLM Market

2011-13 Market Share (PLM Software)

DS: clear market leader with ~30%

market share

DS: +2 pts gain in market share from

2011 to 2013

Software PLM market sized at $10.9bn

Software PLM market including CAD,

Product Data Management,

Simulation, Digital Manufacturing

Source Dassault Systèmes and industry analysts

* Including LMS acquisition

28%

17%

11%10%

30%

19%

10%9%

0%

5%

10%

15%

20%

25%

30%

35%

DS Siemens* PTC Autodesk

2011

2013

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Now Addressing $26bn Market (Baseline)

PLM

Software

3DEXPERIENCE

Software

~$11bn

CAD, Product Data Management, Simulation,

Digital Manufacturing

~$6bn

No

w A

dd

ress

ing

:

$26

bn

~$9 bn

Service

~$6bn

$ 20

bn

3DEXPERIENCE

Scientific Innovation Lifecycle Management,

Manufacturing Execution System, Digital

Marketing, Mining, System Engineering, Civil

Engineering

$32

bn

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2009-2013: Operating Margin Evolution non-IFRS

25.0%

28.6%

30.4%

31.6% 31.5%

20.0%

25.0%

30.0%

2009 2010 2011 2012 2013

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2014 Guidance Consistent with 2009-2014 Plan

€m

Revenue EPS

€

1.86

0.00

1.00

2.00

3.00

4.00

2009 2014Initial Plan

2014Guidance

USD 1.25* 1.37

JPY 115* 140.2

3.45-3.50

More than

2X 1,253

0

500

1,000

1,500

2,000

2,500

3,000

2009 2014Initial Plan

2014Guidance

2,280

- 2,300

On track to deliver EPS CAGR of ~13%

(~15% excluding FX impact)

2,410-2,430 @ 2010 plan rates* 3.75-3.80 @ 2010 plan rates*

2,300-2,500 3.70-4.00

* Key exchange rate assumptions initially outlined when the Company established its 2009-2014 growth plan

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1 5-Year Look Back

2 Growth Strategy

3 2014-2019 Plan

Agenda

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3DEXPERIENCE Platform: A Revolution Multi-discipline approach

Business platform searching, integrating and dash boarding all relevant data

Breakthrough in ease of collaboration

Simple provisioning of DS applications

Powering Industry Solution Experiences

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2014-2019: Multiple Growth Drivers to Support

Revenue Growth

1. Users Expansion in Core Industries

2. Adoption of V6 Architecture within the Installed Base

3. Diversification in New Industries

4. Diversification in High Growth Countries

5. Cloud + Mobile

6. Acquisitions

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Users Expansion in Core Industries* People from all disciplines to work together:

expand to new collaborative professional users

and to digital marketing

Bring intelligence to big data:

expand with Data as a Service,

predictive analytics and search-based

applications

Improve real world thru experience: expand

to shop floor workers & quality engineers -

expand simulation users

« 3D » EXPERIENCE everything:

expand with 2D to 3D migration and with

systems engineering

*Aerospace & Defense, Industrial Equipment, Transport & Mobility

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Revenue Growth





5. Cloud + Mobile

6. Acquisitions

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2,200

3,200

4,200

5,200

2014 E 2015 E 2016 E 2017 E 2018 E 2019 E

Adoption of V6 Architecture within the Installed Base

Benefiting from migration potential in DS installed base

10% license fee upgrade

Price of Maintenance up 10% with improved service

Maintenance rate increase applied to 10% license fee upgrade

And expanding disciplines coverage and collaboration

Contribution to

DS revenue:

~2 pts of growth

DS

est

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ed r

even

ue (

€m)

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Revenue Growth





5. Cloud + Mobile

6. Acquisitions

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7.48.9

11.2

0

2

4

6

8

10

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2013 2015 E 2018 E

New Industries Addressable Market

New Industries* Addressable Market

Tot

al A

ddre

ssab

le M

arke

t – D

S E

stim

ates

Sof

twar

e on

ly (

$bn)

* Architecture Engineering & Construction, Consumer Goods & Retail, Consumer Packaged Goods & Retail, Energy Process & Utilities,

Finance Business Services, High-Tech, Life Sciences, Natural Resources, Marine & Offshore

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% New Industries* in DS Software Revenue

* Architecture Engineering & Construction, Consumer Goods & Retail, Consumer Packaged Goods & Retail, Energy Process & Utilities,

Finance Business Services, High-Tech, Life Sciences, Natural Resources, Marine & Offshore

20%

2009

25%

2013

>30%

2019 E

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Revenue Growth





5. Cloud + Mobile

6. Acquisitions

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High Growth Countries* Diversification

* China, India, Korea, LATAM, Russia

12%

% High Growth Countries in 2013 Total Revenue

2009-13 Total CAGR : above ~15 % ex FX

with potential going forward driven by new product development in those countries

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Revenue Growth





5. Cloud + Mobile

6. Acquisitions

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Expanding Addressable Market with Cloud + Mobile

Accessing with Cloud+ Mobile smaller enterprises & new industries

and expanding addressable market by ~15%

Half of new business with Cloud is expected to be incremental to

perpetual license business

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Year 1 Year 2 Year 3 Year 4 Year 5

Purchase

Software Revenue

Flows 120 20 20 20 20 200

Rental Software

Revenue Flows 53.3 53.3 53.3 53.3 53.3 266.7

Cloud

Subscription * 58.7 58.7 58.7 58.7 58.7 293.5

Taking an Example: Upfront: 100

Yearly Maintenance Fee: 20

Rentals: a Positive Shift Longer-Term

160

160

176

Yearly Rental Fee: (100+3x20) / 3

* Cloud subscription embeds 10% additional fee to cover

Middleware, Hardware & Administration

Break-even after 3 years

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2014 E 2015 E 2016 E 2017 E 2018 E 2019 E

Total Cloud Revenue (€m) Negative Impact on Revenue (€m)

Cloud Contributing Positively to 2014-2019 Revenue

Positive contribution to revenue

(net contribution to 2014-19 revenue: ~1 point)

Assuming:

~50% cannibalization

~10% churn for cloud

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Main Acquisitions since 2009*

* Excluding IBM PLM acquisition related to go-to market strategy and very

small technology acquisitions

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Revenue Growth Users Expansion in Core Industries Adoption of V6 Architecture

within the Installed Base

Diversification in New Industries

Diversification in High Growth Countries

Cloud + Mobile

Acquisitions

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2014-2019: Revenue Growth

0

1,000

2,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

* Software Revenue

in €m

Keeping similar path of revenue

growth from 2014 to 2019

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1 5-Year Look Back

2 Growth Strategy

3 2014-2019 Plan

Agenda

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2014-2019: Dassault Systèmes to Double EPS* non-IFRS

€ 3.45-3.50

€ 7.00

2014 Guidance 2019

*Assuming the following currency rates: - €/US$: 1.37

- €/JPY: 140

EPS objective of:

multi-year growth plan - dassault systèmes...the company’s current outlook for 2014 takes into...

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