• On an IAS 18 basis and in constant currencies: Total revenue increased 13% (IFRS and non-IFRS). Acquisitions contributed 3 percentage points to the revenue growth rate.
• On an IAS 18 basis and in constant currencies: Software revenue increased 11% (IFRS and non-IFRS). Licenses and other software revenue increased 13% (IFRS and non-IFRS). Non-IFRS recurring revenue, comprised of subscription and support revenue, increased 10%. On an organic basis, non-IFRS software revenue increased 8% with licenses and other software growth of 11%, subscription growth of 9% and support growth of 6%.
• On an IAS 18 basis and in constant currencies: Asia non-IFRS software revenue increased 19% on broad-based growth across all of Asia including Japan and China, its two largest geographies. Europe non-IFRS software revenue increased 12%, driven by significantly higher results in Western Europe and broad strength in direct sales with records set in large deal transactions. Americas non-IFRS software revenue increased 4% on mixed results by sales channels. High Growth Countries non-IFRS software revenue rose 18%.
• 3DEXPERIENCE software revenue was up 33% at constant currency on an IAS 18 basis and represented 30% of related software revenue, compared to 25% in 2017, led by large 3DEXPERIENCE transactions in Aerospace & Defense, Transportation & Mobility, Industrial Equipment and Energy, Process & Utilities and higher activity generally.
• On an IAS 18 basis and in constant currencies: Services revenue increased 32% (IFRS) and 33% (Non-IFRS) led by 3DEXPERIENCE deployment activities, contribution from acquisitions and catch-up from prior quarters on certain brands.
• On an IAS 18 basis: IFRS operating income increased 1%. Non-IFRS operating income increased 11% to €390.8 million. The non-IFRS operating margin was 37.4%, coming in ahead of the Company’s objectives on stronger revenue results. In comparison to the year-ago period, the non-IFRS operating margin decreased 120 basis points reflecting dilution from acquisitions.
• In the 2018 fourth quarter, IAS 18 IFRS and non-IFRS effective tax rates were 30.4% and 27.5%, respectively. In the 2017 fourth quarter, the IAS 18 IFRS and non-IFRS effective tax rate was 27.4% and 34.4%, respectively, with the IFRS tax rate benefiting from a deferred tax re-measurement following the enactment of the U.S. Tax Reform Act while on a non-IFRS basis, the Company excluded this one-time tax benefit.

• On an IAS 18 basis: IFRS diluted net income per share decreased 1%. Non-IFRS diluted net income per share increased 24%, both as reported and in constant currency.

Twelve Months 2018 versus 2017 Financial Comparisons on an IAS 18 Basis