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

• Fourth quarter 2018 Financial Objectives
  • 2018 IAS 18 non-IFRS total revenue objective of about €982 million to €1.00 billion based upon the exchange rates assumptions below, growing about 9% to 11% in constant currencies; IAS 18 non-IFRS operating margin of about 36.5%; IAS 18 non-IFRS EPS of about €0.96 to €1.00, representing growth of 8% to 12%;
• Full year 2018 Financial Objectives
  • 2018 IAS 18 non-IFRS revenue growth objective of about 9% to 10% in constant currencies reaffirmed, and updating reported revenue range to about €3.425 to €3.450 billion. The reported revenue range reflects 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 31.5%;
  • 2018 IAS 18 non-IFRS EPS of about €2.98 to 3.02, representing a growth objective of about 11% to 13% as reported;
• Financial objectives are based upon fourth quarter exchange rate assumptions of US$1.20 per €1.00; and JPY135 per €1.00 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 €14 million on an IAS 18 basis, share-based compensation expense, including related social charges, estimated at approximately €129 million and amortization of acquired intangibles estimated at approximately €171 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 October 24, 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 three and nine months ended September 30, 2018 are identical under IFRS 15 in comparison to IAS 18 although some of the line items differ. (See pages 16 and 22 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, year-to-date and period ended September 30, 2018.)

IAS 18 net operating cash flow increased 11% to €746.6 million for the first nine months of 2018 compared to €671.8 million in the 2017 period principally reflecting growth in net income and non-cash operating adjustments.

Dassault Systèmes’ uses of cash for the 2018 nine-month period were principally for payment for acquisitions, net of cash acquired and non-controlling interests totaling €348.8 million; cash dividends of €38.0 million (based on the shareholders electing payment of the dividend in cash); share repurchases of €113.9 million and capital expenditures, net of €48.2 million. The Company received cash for stock options exercised of €59.2 million.

The Company’s net financial position totaled €1.75 billion at September 30, 2018, compared to €1.46 billion at December 31, 2017, reflecting cash, cash equivalents and short-term investments of €2.75 billion and debt related to credit lines of €1.0 billion.

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.