“Importantly, the first quarter results demonstrated the improving breadth and balance of our financial performance. Our three sales channels, all major brands and 9 of 12 geos reported strong license revenue growth in constant currencies. Moreover, looking at total software performance, we saw a similar pattern of strength across Transportation & Mobility, Aerospace & Defense, Industrial Equipment, Consumer Goods & Retail, Architecture, Engineering & Construction and Natural Resources as well as improvement in Life Sciences.

“For the second quarter, we anticipate a strong performance with non-IFRS total revenue growth of 8% to 10% and non-IFRS EPS of about €0.65 to €0.68, representing growth of about 16% to 22% at constant currency (all on an IAS 18 basis).

“We are reconfirming our 2018 financial objectives with IAS 18 non-IFRS total revenue growth of about 8% to 9% in constant currencies, a IAS 18 non-IFRS operating margin of 31% to 31.5%, and IAS 18 non-IFRS earnings per share of €2.83 to €2.88, representing growth of about 11% to 13% at constant currency.

“In summary, the first quarter well underscores our strategy and growth drivers at work. We look forward to sharing our perspectives for the future at our Capital Markets Day on June 15th.”

The Company’s second quarter and full year 2018 financial objectives are given in IAS 18 on a non-IFRS basis:

• Second quarter 2018 IAS 18 non-IFRS total revenue objective of about €815 to €830 million based upon the exchange rates assumptions below, growing about 8% to 10% in constant currencies; non-IFRS operating margin of about 29% to 30%; and non-IFRS EPS of about €0.65 to €0.68, up 5% to 10%, or about 16% to 22% at constant currency;
• 2018 IAS 18 non-IFRS revenue growth objective of about 8% to 9% in constant currencies at €3.355 to €3.385 billion (reflecting the principal 2018 currency exchange rate assumptions below for the US dollar and Japanese yen as well as the potential impact from additional currencies representing about 17% of the Company’s total revenue in 2017);
• 2018 IAS 18 non-IFRS operating margin of about 31% to 31.5%, compared to 32% in 2017, reflecting acquisition dilution and currency headwinds offset in part by moderate organic improvement at constant currency;
• 2018 IAS 18 non-IFRS EPS of about €2.83 to €2.88, representing a growth objective of about 6% to 8%, or about 11% to 13% on a constant currency basis;
• Objectives are based upon exchange rate assumptions of US$1.25 per €1.00 for the 2018 second quarter and US$1.20 per €1.00 for the 2018 second half; and JPY135.0 per €1.00 for the 2018 second quarter and JPY134.5 per €1.00 for full year 2018 before hedging.

These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.

The 2018 non-IFRS objectives, which are stated on an IAS 18 basis, set forth above do not take into account the following accounting elements and are estimated based upon the 2018 principal currency exchange rates above: deferred revenue write-downs estimated at approximately €5 million on an IAS 18 basis, share-based compensation expense, including related social charges, estimated at approximately €78 million and amortization of acquired intangibles estimated at approximately €160 million. The above objectives also do not include any impact from other operating income and expense, net principally comprised of acquisition, integration and restructuring expenses, from one-time items included in financial revenue and from one-time tax restructuring gains and losses. Finally, these estimates do not include any new stock option or share grants, or any new acquisitions or restructurings completed after April 25, 2018.

Cash Flow and Other Financial Highlights Under IAS 18 For Year-over-Year Comparisons

The Company’s net cash flow from operations for the first quarter ended March 31, 2018 is identical under IFRS 15 in comparison to IAS 18 although some of the line items differ. (See page 19 in the Appendix to this press release for further details including a reconciliation of the cash flow statement and balance sheets under IFRS 15 compared to IAS 18 for the quarter and period ended March 31, 2018.)

IAS 18 net operating cash flow increased 17% to €406.9 million for the quarter ended March 31, 2018, compared to €347.8 million in the 2017 First Quarter on growth in net income and working capital evolution.

Dassault Systèmes’ net financial position totaled €1.85 billion at March 31, 2018, compared to €1.46 billion at December 31, 2017, reflecting cash, cash equivalents and short-term investments of €2.85 billion and long-term debt of €1.00 billion.

Cash Dividend Recommendation, Annual Shareholders’ Meeting Date and Filing of Regulatory Annual Report

The Board of Directors has scheduled the Annual Shareholders’ Meeting for May 22, 2018 and is recommending a dividend per share equivalent to €0.58 per share for the fiscal year ended December 31, 2017, representing an increase of approximately 9% compared to the prior year €0.53 per share. In addition, as in recent years, it will also be proposed that each shareholder be granted the option to choose to receive payment of the dividend in cash or new shares. Shareholders may choose payment of the dividend in cash or new shares between May 29, 2018 and June 8, 2018, inclusive. Shares will be traded ex-dividend as of May 29, 2018. Dividends will be made payable as from June 19, 2018. These recommendations are subject to approval by shareholders at the Annual Shareholders’ Meeting. For further information, see the Company’s 2017 Document de Référence filed with the French Autorité des Marchés Financiers (AMF) on March 21, 2018 . The 2017 Document de Référence and an English language translation of this document are available on the Company’s website.