• IFRS total revenue increased 6%. Non-IFRS total revenue increased 5%, with software revenue growth of 4% and services revenue growth of 7%. (All growth rates are in constant currencies.)
• The Company experienced good performance in Diversification Industries during the quarter, in High Tech and Marine & Offshore in particular, on global leaders in these industries adoption of 3DEXPERIENCE.
• Non-IFRS regional performance was similar in the three regions but reflected mixed results by underlying geographies. Non-IFRS revenue growth increased 4% in the Americas led by North America. In Europe non-IFRS revenue increased 4%, with Southern Europe and Central Europe delivering the strongest growth. Non-IFRS revenue growth in Asia of 5% was led by China. Europe represented 42% of non-IFRS total revenue, Americas 31% and Asia 27%. (All growth comparisons are in constant currencies.)
• As anticipated, new licenses revenue results were muted in the first quarter, decreasing 3% on a non-IFRS basis, in constant currencies, reflecting both a very high comparison base as well as the more back-end expectations for 2016.
• Non-IFRS periodic license, maintenance and other software-related revenue increased 7% in constant currencies. Recurring software revenue, representing 74% of total software revenue in the 2016 first quarter, performed well reflecting strong growth in maintenance subscription revenue worldwide and renewed growth in rental subscriptions.
• By product line and on a non-IFRS basis, CATIA software revenue increased 5% on double-digit growth in new licenses; ENOVIA software revenue increased 11% led by 30% new licenses revenue growth; SOLIDWORKS software revenue increased 8% on strong growth in maintenance subscription; Other software decreased 2%, principally reflecting a decrease in large deal transactions in the 2016 first quarter compared to the year-ago period. (All growth comparisons are in constant currencies.)
• IFRS operating income increased 11%. Non-IFRS operating income increased 6% to €181.7 million in the 2016 first quarter reflecting revenue growth and operating improvements. The non-IFRS operating margin increased to 26.2% in the 2016 first quarter, from 25.8% in the year-ago quarter, and reflected underlying operating margin growth of about 60 basis points exclusive of any currency impact.
• During the 2016 first quarter both the IFRS and non-IFRS effective tax rate benefited from the reversal of a tax reserve, lowering the effective tax rate to 19.9% (IFRS) and 25.8% (non-IFRS). Excluding the impact of this tax reserve reversal, the non-IFRS effective tax rate for the first quarter 2016 would have been 34%.
• IFRS diluted net income per share increased 30% to €0.35 per share, compared to €0.27 per share in the 2015 first quarter. Non-IFRS diluted net income per share increased 19% to €0.51 per share with a 5 cents impact related to the above described tax item. In the 2015 first quarter non-IFRS diluted net income per share totaled €0.43.

Cash Flow and Other Financial Highlights

For the 2016 first quarter, net operating cash flow increased 17% to €309 million led by a strong improvement in working capital and net results. Net operating cash flow was €265 million in the year-ago quarter.

The Company’s net financial position increased to €1.59 billion at March 31, 2016, compared to €1.35 billion at December 31, 2015, reflecting an increase in cash, cash equivalents and short-term investments to €2.59 billion from €2.35 billion, with long-term debt unchanged at €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 26, 2016 and is recommending a dividend per share equivalent to €0.47 per share for the fiscal year ended December 31, 2015, representing an increase of approximately 9% compared to the prior year. 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 June 2, 2016 and June 15, 2016, inclusive. Shares will be traded ex-dividend as of June 2, 2016. Dividends will be made payable as from June 24, 2016. These recommendations are subject to approval by shareholders at the Annual Shareholders’ Meeting. For further information, see the Company’s 2015 Document de Référence filed with the French Autorité des Marchés Financiers (AMF) on March 23, 2016. The 2015 Document de Référence and an English language translation of this document are available on the Company’s website.

Summary of Recent Business, Technology and Customer Highlights

Customers

In a separate press release issued today, Dassault Systèmes announced that Ericsson, world leader in communications technology and services, has chosen the 3DEXPERIENCE platform to drive its business transformation and support its market leadership. Ericsson will replace its legacy backbone and connected IT applications with Dassault Systèmes’ “Business Operation Excellence” industry solution experience, based on the 3DEXPERIENCE platform, for a true end-to-end digitalization of its innovation, business and operations processes. This improved performance and efficiency will help the company accelerate the delivery of powerful consumer experiences to the emerging Networked Society of connected people, industries and society.

In April, Dassault Systèmes announced that Caterpillar Inc., the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives, is deploying the 3DEXPERIENCE platform. With the “Single Source for Speed” industry solution experience, Caterpillar can virtually evaluate the performance, quality and durability of future products before committing to physical prototypes.

In April, Dassault Systèmes and Ipsen jointly announced the signing of a collaborative agreement to develop innovative programs to support Ipsen’s drug discovery. Ipsen has selected the “Designed to Cure” industry solution experience to accelerate its research and development transformation and discovery of new therapeutic solutions. The 3DEXPERIENCE platform offers data integration, modeling, and simulation capabilities to gain a more comprehensive view of the dysregulations linked to diseases, as well as improves and shortens the identification of higher quality drug candidates. The project also aims to optimize the R&D processes of Ipsen’s multi-disciplinary teams located in the heart of the leading biotechnological and life sciences hubs in France, the U.K. and the U.S., as well as those of its worldwide network of drug development partners.

In March, Dassault Systèmes announced that it has renewed its partnership with ORACLE TEAM USA, winner of the 33rd and 34th America’s Cups, for the 35th America’s Cup in 2017 in Bermuda. With Dassault Systèmes’ 3DEXPERIENCE platform integrating powerful composite design, simulation and manufacturing applications in a collaborative virtual environment, ORACLE TEAM USA can leverage the skills of its global teams and rapidly develop, test and perfect a technologically-advanced racing catamaran before it ever touches the water.

In March, Dassault Systèmes announced jointly with Vestas Wind Systems A/S, the world’s largest wind turbine manufacturer, that it has selected Dassault Systèmes’ “Sustainable Wind Turbines” industry solution experience for its manufacturing operations management. Vestas can standardize its manufacturing systems and supply chain processes across sites worldwide and support future expansion plans.

In February, Dassault Systèmes and DCNS, world leader in naval defense solutions, jointly announced that DCNS has selected the 3DEXPERIENCE platform to pioneer a new era in the design, engineering, construction and lifecycle services of naval defense solutions. DCNS will deploy the 3DEXPERIENCE platform to manage the entire lifecycle of its products, from new generation submarines to frigates, patrol vessels, aircraft carriers and landing platform docks (LPDs). From concept through engineering, to build, maintain and operations services for its customers, DCNS’s transformation will improve operational performance and competitive edge on a global scale.

Partnerships

In March, Dassault Systèmes and the French National Institute of Health and Medical Research (Inserm) Announced a Joint Agreement to Decipher Disease Complexity and Accelerate Clinical Research. Inserm will use Dassault Systèmes’ 3DEXPERIENCE platform to conduct its strategic biomedical research programs in the areas of aging, cancer, genomics and microbiota. The platform provides Inserm with an integrated virtual environment for open collaborative research, unified laboratory management and biological and chemical modeling and simulation from Dassault Systèmes’ flagship brand dedicated to scientific excellence, BIOVIA.

Other Corporate Events

On April 1 ^st , Jointly with Geometric Ltd., Dassault Systèmes Announced Plans to Acquire Full Ownership of 3D PLM Software Solutions Ltd. (3DPLM), its Joint Venture in India with Geometric Ltd. 3DPLM, formed in 2002, comprises a talented team of 2,000 employees in India working on research and development and services related to Dassault Systèmes’ 3DEXPERIENCE platform and brand applications. Becoming a fully integrated part of Dassault Systèmes’ global R&D will enhance the contribution and value-add of 3DPLM to Dassault Systèmes development projects, while offering even greater career development opportunities for its personnel. Closing of the transaction is expected to take place during the fourth quarter of 2016. Prior to this transaction, 3DPLM was already fully consolidated in Dassault Systèmes financial statements.