Dassault Systèmes Reports Strong Revenue and Earnings Growth and Upgrades 2015 Financial Objectives
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Dassault Systèmes Reports Strong Revenue and Earnings Growth and Upgrades 2015 Financial Objectives

VÉLIZY-VILLACOUBLAY, France — (BUSINESS WIRE) — July 22, 2015Dassault Systèmes (Paris: DSY) (Euronext Paris: #13065, DSY.PA), the 3DEXPERIENCE Company, world leader in 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions, today announced IFRS unaudited financial results for the second quarter and six months ended June 30, 2015. These results were reviewed by the Company’s Board of Directors on July 22, 2015.

Summary Highlights
(unaudited)

 

2015 Second Quarter and First Half Financial Highlights

(unaudited)

 
                                       
In millions of Euros, except per share data     IFRS     Non-IFRS  
            Change     Change in cc*       Change     Change in cc*  
Q2 Total Revenue     715,7     29%     16%     723,5     27%     14%  
Q2 Operating Margin     22,0%                 29,4%              
Q2 EPS     0,39     50%           0,53     25%        
                                       
In millions of Euros, except per share data     IFRS     Non-IFRS  
            Change     Change in cc*       Change     Change in cc*  
YTD 2015 Total Revenue     1 367,2     29%     16%     1 388,6     29%     17%  
YTD 2015 Operating Margin     19,6%                 27,7%              
YTD 2015 EPS     0,67     43%           0,96     22%        

*In constant currencies

                                     
                                       

“Dassault Systèmes’ second quarter and first half financial performance were driven by good customer dynamics for our solutions in a wide range of industries. We also made significant progress in advancing strategic initiatives,” commented Bernard Charlès, Dassault Systèmes President and Chief Executive Officer.

“Among these is 3D printing, which represents game-changing possibilities in terms of production business models. Additive manufacturing requires unique software specification-based design capabilities and intimate understanding of new materials, all of them at the core of our Research & Development efforts in the past years, or acquired with BIOVIA. The 3DEXPERIENCE platform makes it possible to industrialize comprehensive additive manufacturing processes.

“Addressing Smart Cities, we’re developing ‘Virtual Singapore’, the digital twin experience of the city-state and a world first, based on our 3DEXPERIENCity solutions, in cooperation with the Singapore Prime Minister’s office. Over the course of the last 20 years, Dassault Systèmes has been deploying digital twins for many complex industries, from aerospace to biotech. We’re now applying it to cities, some of the most complex products ever created – in order to improve infrastructure development, risk management or traffic optimization, for example. Large-scale simulations of an entire city showcase what is possible using the 3DEXPERIENCE platform. With ‘Virtual Singapore’ we will have a ‘master model’ to represent, simulate and optimize an urban experience.

“And recently for Internet of Experiences, Netvibes, part of our 3DEXPERIENCE platform, with its dashboard intelligence, has introduced a revolutionary innovation of its stand-alone product. Called ‘Dashboard of Things’, it introduces ‘programmable intelligence’, whereby businesses and consumers can very easily program automatic interactions between apps and devices, to provide further value to its 7 million users. This is an example of how Dassault Systèmes gives meaning to the Internet of Things.”

 

2015 Second Quarter Financial Summary

(unaudited)

 
                                       
In millions of Euros, except per share data     IFRS   Non-IFRS  
            Change     Change in cc*       Change     Change in cc*  
Q2 Total Revenue     715,7     29%     16%     723,5     27%     14%  
Q2 Software Revenue     627,8     27%     14%     635,4     25%     12%  
Q2 Service & other Revenue     87,9     44%     30%     88,1     42%     28%  
Q2 Operating Margin     22,0%                 29,4%              
Q2 EPS     0,39     50%           0,53     25%        
                                       
                                       
                                       
In millions of Euros     IFRS     Non-IFRS  
      Q2 2015     Q2 2014     Change in cc*     Q2 2015     Q2 2014     Change in cc*  
Americas     220,0     156,9     15%     224,0     162,9     12%  
Europe     305,3     259,2     13%     308,0     264,2     12%  
Asia     190,4     140,7     22%     191,5     143,0     20%  

*In constant currencies

                                     
                                       

 

2015 First Half Financial Summary

(unaudited)

 
In millions of Euros, except per share data     IFRS     Non-IFRS  
            Change     Change in cc*     Change     Change in cc*  
YTD 2015 Total Revenue     1 367,2     29%     16%     1 388,6     29%     17%  
YTD 2015 Software Revenue     1 206,0     28%     15%     1 226,4     28%     15%  
YTD 2015 Services and other revenue     161,2     42%     29%     162,2     41%     28%  
YTD 2015 Operating Margin     19,6%                 27,7%              
YTD 2015 EPS     0,67     43%           0,96     22%        
                                       
                                       
In millions of Euros     IFRS     Non-IFRS  
      YTD 2015     YTD 2014     Change in cc*     YTD 2015     YTD 2014     Change in cc*  
Americas     417,3     295,3     16%     428,3     301,3     17%  
Europe     587,8     490,7     15%     595,0     496,3     15%  
Asia     362,1     273,0     19%     365,3     275,3     19%  

*In constant currencies

                                     
                                       

Cash Flow and Other Financial Highlights

Net operating cash flow was € 151.5 million and €416.8 million for the three and six-months ended June 30, 2015, compared to €172.3 and €354.6 million for the 2014 respective periods. Second quarter 2015 changes in working capital includes the payment of €60 million in connection with ongoing tax proceedings. Excluding this item, operating cash flow would have been increasing 23% compared with the same period of 2014.

In the 2015 First Half, the Company uses of cash were principally for cash dividends of €95.6 million, payment for acquisitions of €18.1 million and capital expenditures of €18.0 million. The Company received cash for stock options exercised of €19.5 million.

At June 30, 2015, the Company’s net financial position totaled €1.15 billion, compared to €825.5 million at December 31, 2014, reflecting an increase in cash, cash equivalents and short-term investments to €1.50 billion, compared to €1.18 billion at December 31, 2014, with long-term debt unchanged at €350.0 million.

Summary of Recent Business, Technology and Customer Highlights

On June 16, 2015, Dassault Systèmes announced collaboration with the National Research Foundation (NRF), Prime Minister’s Office, Singapore, to develop Virtual Singapore, a realistic and integrated 3D model. This project builds upon Dassault Systèmes’ 3DEXPERIENCity, powered by the 3DEXPERIENCE platform, to create a dynamic, 3D digital model of Singapore and connect all stakeholders in a secured and controlled environment. Virtual Singapore is a collaborative platform with a rich data environment and visualization techniques that will be used by Singapore’s citizens, businesses, government and research community to develop tools and services that address the emerging and complex challenges Singapore faces. Virtual Singapore was launched in December 2014 as part of Singapore’s Smart Nation drive.

On June 18, 2015, Dassault Systèmes and Safran, a leading international high-technology group in aerospace, defense and security, announced that they had entered into a strategic partnership for Additive Manufacturing (known as 3D printing in other industries), with the goal to develop an end-to-end digital continuity for the additive manufacturing of aerospace engine parts. The partnership combines Dassault Systèmes’ 3DEXPERIENCE platform with Safran’s expertise in innovative technologies, for the development of a world-class, end-to-end digital solution for additive manufacturing. The effective use of this manufacturing process in the aviation industry can enhance production times as well as product performance in terms of strength, weight and environmental impact.

On June 18, 2015, Dassault Systèmes announced that Hispano-Suiza, a globally-recognized specialist in mechanical power transmission systems for aircraft engines and part of Safran, a leading international high-technology group in aerospace, defense and security, selected the Company’s Co-Design to Target” industry solution experience based on the 3DEXPERIENCE platform to improve the efficiency of its design and engineering programs. ‘Co-Design to Target’ delivers a secure, single source of the truth that facilitates the exchange of data within and between every domain of a company’s aviation design, engineering and manufacturing programs.

On June 15, 2015, the Company announced that Airbus Helicopters, the world’s leading manufacturer of civil and military helicopters and a division of Airbus Group, has chosen Dassault Systèmes’ “Build to Operate” industry solution experience for more efficient and profitable manufacturing operations management of its helicopter programs. Airbus Helicopters was seeking a powerful factory planning and shop-floor solution that would reduce its time-to-market and improve operational efficiency. The “Build to Operate” industry solution experience, specifically tailored for the aerospace and defense industry and leveraging the DELMIA Apriso manufacturing portfolio, will enable Airbus Helicopters to monitor, control and validate all aspects of manufacturing operations with digital precision—ranging from replicable processes and production sequences, to the flow of deliverables throughout their supply chain.

On May 26, 2015 the Company announced that Myntra, India’s largest online platform for fashion and lifestyle, selected its ‘My Collection for Fashion’ industry solution experience to accelerate its internal and external processes. Dassault Systèmes’ My Collection for Fashion is an ISE which enables teams inside and outside a company to engage more efficiently in social innovation, connected design, seamless collaboration and supply chain coordination.

Other Corporate Events

On June 15, 2015, Dassault Systèmes completed the change of the legal status of the Company from that of a French Public Limited Company (Société anonyme) to that of a European Company. The adoption of the status of European Company (Societas Europaea, SE) is reflecting the international dimension of the Company and its growing presence in Europe.

On May 28, 2015 at the Annual Shareholders’ Meeting, shareholders approved an annual dividend per share equivalent to €0.43 per share for the fiscal year ended December 31, 2014, representing an increase of approximately 4% compared to the prior year. In addition, shareholders again approved an option to receive payment of the dividend in the form of cash or in new Dassault Systèmes share. The payment of the dividend was completed on June 25, 2015 with the cash payment in the aggregate amount of €95.6 million and the issuance of 185,709 new ordinary shares.

Business Outlook

Thibault de Tersant, Senior Executive Vice President, CFO, commented,“Our second quarter financial results came in above our expectations, with the upside coming from solid execution of our new direct sales model, strong growth in Asia across the board and improvement in several brands including DELMIA, GEOVIA and EXALEAD.

“During the first half we delivered on our objectives for organic double-digits non-IFRS new licenses revenue growth and an increase in our organic non-IFRS operating margin of approximately 100 basis points – both targets excluding any currency benefits. And on top of this we have delivered excellent cash flow growth.

“Turning to our 2015 financial objectives, we are increasing our revenue range by about €40 million in total to €2.80 to €2.82 billion and are increasing our 2015 non-IFRS EPS objective to about €2.15, representing growth of about 18%. We are maintaining our target for double-digit organic new licenses revenue growth in constant currencies for the second half, even with a stronger base of comparison.”

The Company’s third quarter and full year 2015 financial objectives are as follows:

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 2015 non-IFRS objectives set forth above do not take into account the following accounting elements and are estimated based upon the 2015 currency exchange rates above: deferred revenue write-downs estimated at approximately €38 million, share-based compensation expense, estimated at approximately €18 million and amortization of acquired intangibles estimated at approximately €155 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 July 23, 2015.

Today’s Webcast and Conference Call Information

Today, Thursday, July 23, 2015, Dassault Systèmes will first host a meeting in Paris, which will be simultaneously webcasted at 9:00 AM London time/10:00 AM Paris time and will then also 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 1 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.

2015 Key Investor Relations Events

Third Quarter 2015 Earnings, October 22, 2015
Fourth Quarter 2015 Earnings, February 4, 2016

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 2015 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. 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$1.15 per €1.00 for the 2015 third quarter and US$1.13 per €1.00 for the full year as well as an average Japanese yen to euro exchange rate of JPY135.0 to €1.00 for the third quarter and JPY134.6 to €1.00 for the full year; 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 2014 Document de Référence, filed with the AMF on March 24, 2015, and also available on the Company’s website www.3ds.com.

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 annual report for the year ended December 31, 2014 included in the Company’s 2014 Document de Référence filed with the AMF on March 24, 2015.

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.

Information in Constant Currencies

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 trend information is expressed herein "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.

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 190,000 customers of all sizes, in all industries, in more than 140 countries. For more information, visit www.3ds.com.

CATIA, SOLIDWORKS, ENOVIA, DELMIA, SIMULIA, GEOVIA, EXALEAD, 3D VIA, 3DSWYM, BIOVIA, NETVIBES, 3DEXCITE are registered trademarks of Dassault Systèmes or its subsidiaries in the US and/or other countries.

(Tables to Follow)

TABLE OF CONTENTS

Non-IFRS key figures
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cash flow statements
IFRS – non-IFRS reconciliation

 

DASSAULT SYSTEMES
NON-IFRS KEY FIGURES
(unaudited; in millions of Euros, except per share data, headcount and exchange rates)

Non-IFRS key figures exclude the effects of adjusting the carrying value of acquired companies’ deferred revenue, share-based compensation expense and related social charges, amortization of acquired intangible assets, other operating income and expense, net, certain one-time financial revenue items and the income tax effects of these non-IFRS adjustments and certain one-time tax effects.

Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.

               
In millions of Euros, except per share data and percentages     Three months ended     Six months ended  
     

June 30,
2015

   

June 30,
2014

   

Change

   

Change
in cc*

   

June 30,
2015

   

June 30,
2014

    Change    

Change
in cc*

 
Non-IFRS Revenue     € 723,5     € 570,1     27%     14%    

€ 1 388,6

   

€ 1 072,9

    29%     17%  
                                                   
Non-IFRS Revenue breakdown by activity                                
Software revenue     635,4     508,0     25%     12%     1 226,4     958,1     28%     15%  
of which new licenses revenue     182,8     140,0     31%     17%     346,4     258,1     34%     20%  
of which periodic licenses, maintenance and

other software-related revenue

    452,6     368,0     23%     11%     880,0     700,0     26%     13%  
Services and other revenue     88,1     62,1     42%     28%     162,2     114,8     41%     28%  
                                                   
Non-IFRS Recurring software revenue     444,9     365,5     22%     9%     866,7     695,9     25%     12%  
                                                   
Non-IFRS software revenue breakdown by product line                          
CATIA software revenue     244,0     216,8     13%     4%     454,6     404,3     12%     4%  
ENOVIA software revenue     73,1     65,3     12%     1%     136,8     125,0     9%     (1%)  
SOLIDWORKS software revenue     140,2     107,8     30%     11%     282,9     211,3     34%     14%  
Other software revenue     178,1     118,1     51%     35%     352,1     217,5     62%     45%  
                                                   
Non-IFRS Revenue breakdown by geography                                
Americas     224,0     162,9     38%     12%     428,3     301,3     42%     17%  
Europe     308,0     264,2     17%     12%     595,0     496,3     20%     15%  
Asia     191,5     143,0     34%     20%     365,3     275,3     33%     19%  
                                                   
Non-IFRS operating income     € 212,4     € 162,2     31%           € 384,1     € 301,7     27%        
Non-IFRS operating margin     29,4%     28,5%                 27,7%     28,1%              
Non-IFRS net income     136,2     108,6     25%           246,9     201,2     23%        
Non-IFRS diluted net income per share **     € 0,53     € 0,43     25%           € 0,96     € 0,79     22%        
Closing headcount     13 588     12 156     12%           13 588     12 156     12%        
                                                   
Average Rate USD per Euro     1,11     1,37     (19%)           1,12     1,37     (18%)        
Average Rate JPY per Euro     134,3     140,0     (4%)           134,2     140,4     (4%)        

 

                                                 

*In constant currencies
** 2014 EPS adjusted to reflect the two-for-one stock split effected on July 17, 2014

   

DASSAULT SYSTEMES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IFRS)

(unaudited; in millions of Euros, except per share data)

 
               

 

    Three months ended     Six months ended  

In millions of Euros, except per share data and
percentages

    June 30,     June 30,     June 30,     June 30,  
      2015     2014     2015     2014  
New licenses revenue     177,4     139,6     333,9     257,7  
Periodic licenses, maintenance and other software-related revenue     450,4     356,0     872,1     687,5  
Software revenue     627,8     495,6     1 206,0     945,2  
Services and other revenue     87,9     61,2     161,2     113,8  
Total Revenue     € 715,7     € 556,8     € 1 367,2     € 1 059,0  
Cost of software revenue (excluding amortization of acquired intangibles)     (35,3)     (27,4)     (72,0)     (52,1)  
Cost of services and other revenue     (74,2)     (48,6)     (145,0)     (95,1)  
Research and development     (128,4)     (107,6)     (251,6)     (194,4)  
Marketing and sales     (228,2)     (187,1)     (445,7)     (362,9)  
General and administrative     (50,4)     (45,6)     (100,9)     (95,5)  
Amortization of acquired intangibles     (37,5)     (30,1)     (77,6)     (57,5)  
Other operating income and expense, net     (4,0)     (10,8)     (6,2)     (21,6)  
Total Operating Expenses     (€ 558,0)     (€ 457,2)     (€ 1 099,0)     (€ 879,1)  
Operating Income     € 157,7     € 99,6     € 268,2     € 179,9  
Financial revenue and other, net     3,1     3,5     3,8     7,4  
Income before income taxes     160,8     103,1     272,0     187,3  
Income tax expense     (59,1)     (36,6)     (99,3)     (66,8)  
Net Income     101,7     66,5     172,7     120,5  
Non-controlling interest     (1,4)     0,0     (2,5)     (0,1)  
Net Income attributable to equity holders of the parent     € 100,3     € 66,5     € 170,2     € 120,4  
Basic net income per share *     0,40     0,27     0,68     0,48  
Diluted net income per share *     € 0,39     € 0,26     € 0,67     € 0,47  
Basic weighted average shares outstanding (in millions) *     252,4     250,2     252,1     250,3  
Diluted weighted average shares outstanding (in millions) *     256,1     254,9     255,9     255,0  

* 2014 adjusted to reflect the two-for-one stock split effected on July 17, 2014

   

IFRS revenue variation as reported and in constant currencies

 
               
      Three months ended June 30, 2015     Six months ended June 30, 2015  
      Change*     Change in cc**     Change*     Change in cc**  
IFRS Revenue     29%     16%     29%     16%  
IFRS Revenue by activity                          
Software revenue     27%     14%     28%     15%  
Services and other revenue     44%     30%     42%     29%  
IFRS Software Revenue by product line                    
CATIA software revenue     13%     4%     12%     4%  
ENOVIA software revenue     12%     1%     9%     (1%)  
SOLIDWORKS software revenue     30%     11%     34%     14%  
Other software revenue     61%     45%     62%     46%  
IFRS Revenue by geography                          
Americas     40%     15%     41%     16%  
Europe     18%     13%     20%     15%  
Asia     35%     22%     33%     19%  

*Variation compared to the same period in the prior year.
**In constant currencies

   

DASSAULT SYSTEMES

CONDENSED CONSOLIDATED BALANCE SHEETS (IFRS)

(unaudited; in millions of Euros)

 
   
In millions of Euros     June 30,     December 31,  
      2015     2014  
               
ASSETS              
Cash and cash equivalents     1 444,1     1 104,2  
Short-term investments     59,5     71,3  
Accounts receivable, net     541,7     627,7  
Other current assets     197,3     177,3  
Total current assets     2 242,6     1 980,5  
Property and equipment, net     136,4     136,7  
Goodwill and Intangible assets, net     2 743,4     2 686,1  
Other non-current assets     218,3     154,2  
Total Assets     € 5 340,7     € 4 957,5  
LIABILITIES AND SHAREHOLDERS' EQUITY              
Accounts payable     118,6     130,3  
Unearned revenues     811,9     636,8  
Short-term debt     0,0     10,0  
Other current liabilities     362,3     356,6  
Total current liabilities     1 292,8     1 133,7  
Long-term debt     350,0     350,0  
Other non-current obligations     487,3     514,3  
Total long-term liabilities     837,3     864,3  
Non-controlling interests     20,0     16,0  
Parent shareholders' equity     3 190,6     2 943,5  
Total Liabilities and Shareholders' equity     € 5 340,7     € 4 957,5  

* The consolidated balance sheet as of December 31, 2014 has been restated to reflect the finalized purchase price allocation for prior year business combinations.

               

DASSAULT SYSTEMES

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (IFRS)

(unaudited; in millions of Euros)

 
               
In millions of Euros     Three months ended     Six months ended  
     

June 30,
2015

   

June 30,
2014

    Change    

June 30,
2015

   

June 30,
2014

    Change  
Net Income attributable to equity holders of the parent     100,3     66,5     33,8     170,2     120,4     49,8  
Non-controlling interest    

1,3

   

0,0

   

1,3

   

2,4

   

0,1

   

2,3

 
Net Income     101,6     66,5     35,1     172,6     120,5     52,1  
Depreciation of property & equipment     10,7     8,9     1,8     21,0     17,1     3,9  
Amortization of intangible assets     39,5     33,8     5,7     81,7     62,9     18,8  
Other non cash P&L Items     (10,2)     (0,9)     (9,3)     (20,3)     10,4     (30,7)  
Changes in working capital     9,9     64,0     (54,1)     161,8     143,7     18,1  
Net Cash provided by operating activities     € 151,5     € 172,3     (€ 20,8)     € 416,8     € 354,6     € 62,2  
                                       
Additions to property, equipment and intangibles     (9,1)     (9,2)     0,1     (18,0)     (14,0)     (4,0)  
Payments for acquisition of businesses, net of cash acquired     (11,4)     (497,5)     486,1     (18,1)     (657,4)     639,3  
Sale (purchase) of short term investments, net     26,3     16,6     9,7     16,3     (26,6)     42,9  
Purchase of investments, loans and others     1,6     (2,0)     3,6     (3,6)     (6,8)     3,2  
Net Cash provided by (used in) investing activities     € 7,4     (€ 492,1)     € 499,5     (€ 23,4)     (€ 704,8)     € 681,4  
                                       
Proceeds (Repayments) of short-term and long-term debt     (10,8)     (10,3)     (0,5)     (10,8)     (10,3)     (0,5)  
(Purchase) Sale of treasury stock     (1,6)     (76,5)     74,9     (5,1)     (130,0)     124,9  
Proceeds from exercise of stock options     9,3     21,3     (12,0)     19,5     34,6     (15,1)  
Cash dividend paid     (95,6)     (32,3)     (63,3)     (95,6)     (32,3)     (63,3)  
Net Cash provided by (used in) financing activities     (€ 98,7)     (€ 97,8)     (€ 0,9)     (€ 92,0)     (€ 138,0)     € 46,0  
                                       
Effect of exchange rate changes on

cash and cash equivalents

    (28,6)     5,9     (34,5)     38,5     3,8     34,7  
                                       
Increase (decrease) in cash and cash equivalents     € 31,6     (€ 411,7)     € 443,3     € 339,9     (€ 484,4)     € 824,3  
                                       
Cash and cash equivalents at beginning of period     € 1 412,5     € 1 665,2           € 1 104,2     € 1 737,9        
Cash and cash equivalents at end of period     € 1 444,1     € 1 253,5           € 1 444,1     € 1 253,5        
                                       

DASSAULT SYSTEMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data)

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 Document de référence for the year ended December 31, 2014 filed with the AMF on March 24, 2015. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS.

                 
  In millions of Euros, except per share data and percentages     Three months ended June 30,     Change  
        2015    

Adjustment

    2015     2014    

Adjustment

    2014     IFRS    

Non-IFRS

 
        IFRS    

(1)

    non-IFRS     IFRS    

(1)

    non-IFRS          

(2)

 
  Total Revenue     € 715,7     7,8     € 723,5     € 556,8     13,3     € 570,1     29%     27%  
  Total Revenue breakdown by activity                                                  
  Software revenue     627,8     7,6     635,4     495,6     12,4     508,0     27%     25%  
  New Licenses     177,4     5,4     182,8     139,6     0,4     140,0     27%     31%  
  Other software-related revenue     7,7                 2,5                 208%        
  Periodic Licenses and Maintenance     442,7     2,2     444,9     353,5     12,0     365,5     25%     22%  
  Recurring portion of Software revenue     71%           70%     71%           72%              
  Services and other revenue     87,9     0,2     88,1     61,2     0,9     62,1     44%     42%  
  Total Software Revenue breakdown by product line                                            
  CATIA software revenue     244,0                 216,8                 13%        
  ENOVIA software revenue     73,1                 65,3                 12%        
  SOLIDWORKS software revenue     140,2                 107,8                 30%        
  Other software revenue     170,5     7,6     178,1     105,7     12,4     118,1     61%     51%  
  Total Revenue breakdown by geography                                                  
  Americas     220,0     4,0     224,0     156,9     6,0     162,9     40%     38%  
  Europe     305,3     2,7     308,0     259,2     5,0     264,2     18%     17%  
  Asia     190,4     1,1     191,5     140,7     2,3     143,0     35%     34%  
  Total Operating Expenses     (€ 558,0)     46,9     (€ 511,1)     (€ 457,2)     49,3     (€ 407,9)     22%     25%  
  Share-based compensation expense     (5,4)     5,4     -     (8,4)     8,4     -     -     -  
  Amortization of acquired intangibles     (37,5)     37,5     -     (30,1)     30,1     -     -     -  
  Other operating income and expense, net     (4,0)     4,0     -     (10,8)     10,8     -     -     -  
  Operating Income     € 157,7     54,7     € 212,4     € 99,6     62,6     € 162,2     58%     31%  
  Operating Margin     22,0%           29,4%     17,9%           28,5%              
  Financial revenue & other, net     3,1     0,0     3,1     3,5     0,0     3,5     (11%)     (11%)  
  Income tax expense     (59,1)     (18,8)     (77,9)     (36,6)     (20,4)     (57,0)     61%     37%  
  Non-controlling interest     (1,4)     0,0     (1,4)     0,0     (0,1)     (0,1)     N/A     1300%  
  Net Income attributable to shareholders     € 100,3     35,9     € 136,2     € 66,5     42,1     € 108,6     51%     25%  
  Diluted Net Income Per Share (3)     € 0,39     0,14     € 0,53     € 0,26     0,17     € 0,43     50%     25%  

(1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the deferred revenue adjustment of acquired companies; (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangibles, share-based compensation expense and related social charges, and other operating income and expense, (iii) adjustments to IFRS financial revenue and other, net reflect the exclusion of certain one-time items included in financial revenue and other, net, and (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted net income per share, the income tax effect of the non-IFRS adjustments and certain one-time tax effects.

                           
      Three months ended June 30,  
In millions of Euros     2015 IFRS     Adjustment     2015     2014 IFRS     Adjustment     2014  
                  non-IFRS                 non-IFRS  
Cost of revenue     (109,5)     0,2     (109,3)     (76,0)     0,2     (75,8)  
Research and development     (128,4)     2,2     (126,2)     (107,6)     3,4     (104,2)  
Marketing and sales     (228,2)     2,2     (226,0)     (187,1)     2,8     (184,3)  
General and administrative     (50,4)     0,8     (49,6)     (45,6)     2,0     (43,6)  
Total share-based compensation expense           5,4                 8,4        

(2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.

(3) Based on a weighted average 256.1 million diluted shares for Q2 2015 and 254.9 million diluted shares for Q2 2014 adjusted to reflect the two-for-one stock split effected on July 17, 2014.

DASSAULT SYSTEMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data)

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 Document de référence for the year ended December 31, 2014 filed with the AMF on March 24, 2015. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS.

               

In millions of Euros, except per share data and
percentages

 

    Six months ended June 30,     Change  
    2015    

Adjustment

    2015     2014    

Adjustment

    2014     IFRS    

Non-IFRS

 
      IFRS    

(1)

    non-IFRS     IFRS    

(1)

    non-IFRS          

(2)

 
Total Revenue     € 1 367,2     21,4     € 1 388,6    

€ 1 059,0

    13,9    

€ 1 072,9

    29%     29%  
Total Revenue breakdown by activity                                                  
Software revenue     1 206,0     20,4     1 226,4     945,2     12,9     958,1     28%     28%  
New Licenses     333,9     12,5     346,4     257,7     0,4     258,1     30%     34%  
Other software-related revenue     13,3                 4,1                 224%        
Periodic Licenses and Maintenance     858,8     7,9     866,7     683,4     12,5     695,9     26%     25%  
Recurring portion of Software revenue     71%           71%     72%           73%              
Services and other revenue     161,2     1,0     162,2     113,8     1,0     114,8     42%     41%  
Total Software Revenue breakdown by product line                                            
CATIA software revenue     454,6                 404,3                 12%        
ENOVIA software revenue     136,8                 125,0                 9%        
SOLIDWORKS software revenue     282,9                 211,3                 34%        
Other software revenue     331,7     20,4     352,1     204,6     12,9     217,5     62%     62%  
Total Revenue breakdown by geography                                                  
Americas     417,3     11,0     428,3     295,3     6,0     301,3     41%     42%  
Europe     587,8     7,2     595,0     490,7     5,6     496,3     20%     20%  
Asia     362,1     3,2     365,3     273,0     2,3     275,3     33%     33%  
Total Operating Expenses    

(€ 1 099,0)

    94,5    

(€ 1 004,5)

   

(€ 879,1)

    107,9     (€ 771,2)     25%     30%  
Share-based compensation expense     (10,7)     10,7     -     (28,8)     28,8     -     -     -  
Amortization of acquired intangibles     (77,6)     77,6     -     (57,5)     57,5     -     -     -  
Other operating income and expense, net     (6,2)     6,2     -     (21,6)     21,6     -     -     -  
Operating Income     € 268,2     115,9     € 384,1     € 179,9     121,8     € 301,7     49%     27%  
Operating Margin     19,6%           27,7%     17,0%           28,1%              
Financial revenue & other, net     3,8     0,0     3,8     7,4     0,0     7,4     (49%)     (49%)  
Income tax expense     (99,3)     (39,2)     (138,5)     (66,8)     (40,7)     (107,5)     49%     29%  
Non-controlling interest     (2,5)     0,0     (2,5)     (0,1)     (0,3)     (0,4)     2400%     525%  
Net Income attributable to shareholders     € 170,2     76,7     € 246,9     € 120,4     80,8     € 201,2     41%     23%  
Diluted Net Income Per Share (3)     € 0,67     0,29     € 0,96     € 0,47     0,32     € 0,79     43%     22%  

(1) In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the deferred revenue adjustment of acquired companies; (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangibles, share-based compensation expense and related social charges, and other operating income and expense, (iii) adjustments to IFRS financial revenue and other, net reflect the exclusion of certain one-time items included in financial revenue and other, net, and (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted net income per share, the income tax effect of the non-IFRS adjustments and certain one-time tax effects.

         
      Six months ended June 30,  
In millions of Euros     2015 IFRS     Adjustment     2015     2014 IFRS     Adjustment     2014  
                  non-IFRS                 non-IFRS  
Cost of revenue     (217,0)     0,3     (216,7)     (147,2)     0,8     (146,4)  
Research and development     (251,6)     4,4     (247,2)     (194,4)     11,2     (183,2)  
Marketing and sales     (445,7)     4,1     (441,6)     (362,9)     8,0     (354,9)  
General and administrative     (100,9)     1,9     (99,0)     (95,5)     8,8     (86,7)  
Total share-based compensation expense           10,7                 28,8        
                                       

(2) The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure. (3) Based on a weighted average 255.9 million diluted shares for H1 2015 and 255.0 million diluted shares for H1 2014 adjusted to reflect the two-for-one stock split effected on July 17, 2014.