VÉLIZY-VILLACOUBLAY, France — (BUSINESS WIRE) — October 23, 2018 — Dassault Systèmes (Paris: DSY) (Euronext Paris: #13065, DSY.PA), announces IFRS unaudited financial results for the third quarter and nine months ended September 30, 2018. These results were reviewed by the Company’s Board of Directors on October 23, 2018. The Company has adopted IFRS 15 as of January 1, 2018. This press release includes 2018 third quarter and nine-month financial results under IFRS 15 as well as under the prior IAS 18 standard and includes a summary explanation of the major differences for the Company. In addition, this press release also includes financial information on a non-IFRS basis (both IFRS 15 and IAS 18) with reconciliations included in the Appendix to this communication.
Third Quarter and Nine Months 2018 Highlights and Financial Summary
(Unaudited, with references to IAS 18 data, revenue growth at constant currency)
- Q3 well aligned with Dassault Systèmes’ non-IFRS IAS 18 objectives: total revenue up 10% and software revenue up 9% at constant currency, operating margin at 30.9%, EPS up 11% at €0.71
- Organic licenses revenue growth well in line, up 8% YTD at constant currency (non-IFRS IAS 18)
- 3DEXPERIENCE software revenue up 19% YTD at constant currency (non-IFRS IAS 18)
- YTD software revenue up strongly in Transportation & Mobility; Energy, Process & Utilities; Consumer Goods and CPG-Retail; Marine & Offshore; Natural Resources; and Architecture, Engineering & Construction (non-IFRS IAS 18)
- Cash flow from operations up 11% YTD to €747 million (IAS 18)
- On an IAS 18, non-IFRS basis: targeting FY 2018 total revenues of €3.425 – €3.450 billion, up 9% to 10% at constant currency and EPS of €2.98 to €3.02, up 11% to 13%
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In millions of Euros,
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IFRS under
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IFRS under IAS18 |
IFRS under
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IFRS under IAS18 | ||||||||||||
| Q3 2018 | Q3 2018 | Change | Change in cc* | YTD 2018 | YTD 2018 | Change | Change in cc* | |||||||||
| Total Revenue | 804.5 | 826.9 | 10% | 9% | 2,450.9 | 2,433.5 | 5% | 9% | ||||||||
| Software Revenue | 711.2 | 733.7 | 10% | 9% | 2,186.4 | 2,169.1 | 5% | 10% | ||||||||
| Operating Margin | 18.9% | 21.1% | -0.2pts | 20.4% | 19.8% | +0.4pts | ||||||||||
| EPS | 0.43 | 0.49 | 20% | 1.45 | 1.41 | 16% | ||||||||||
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In millions of Euros,
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Non-IFRS under
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Non-IFRS under IAS18 |
Non-IFRS under
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Non-IFRS under IAS18 | ||||||||||||
| Q3 2018 | Q3 2018 | Change | Change in cc* | YTD 2018 | YTD 2018 | Change | Change in cc* | |||||||||
| Total Revenue | 809.2 | 831.7 | 10% | 10% | 2,460.5 | 2,443.1 | 5% | 9% | ||||||||
| Software Revenue | 715.5 | 738.0 | 10% | 9% | 2,195.6 | 2,178.2 | 5% | 9% | ||||||||
| Operating Margin | 28.9% | 30.9% | -1.1pts | 29.9% | 29.4% | -0.0pts | ||||||||||
| EPS | 0.65 | 0.71 | 11% | 11% | 2.06 | 2.01 | 12% | 19% | ||||||||
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*In constant currencies. |
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Bernard Charlès, Dassault Systèmes’ Vice Chairman and Chief Executive Officer commented, “We see a global Industry Renaissance: companies across all industries are reinventing themselves to provide new categories of experiences revealing new categories of customers. In all sectors that we serve – starting with Transportation and Mobility, Aerospace and Defense and Energy, Processes and Utilities – we observe a radical transformation of the offer. All businesses are putting their next generation portfolio at the top of their agenda.
This long term trend is going to accelerate with the ‘platform factor’. Indeed, producing new experiences requires excellence in operations and high added value ecosystems. With the 3DEXPERIENCE platform we provide an operating system – for customers to power industry solutions - and a business model – for customers to power their value networks. Moreover, the 3DEXPERIENCE platform on the Cloud enables companies to very quickly launch and create full digital continuity from day 1, as we see both in our commercial business and in our 3DEXPERIENCE Lab, our accelerator for start-ups.
“This will drive sustainable growth opportunities for 2018 and the medium term.”
Third Quarter Financial Summary
(Unaudited)
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In millions of Euros,
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IFRS under
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IFRS under IAS18 |
Non-IFRS under
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Non-IFRS under IAS18 | ||||||||||||
| Q3 2018 | Change | Change in cc* | Q3 2018 | Change | Change in cc* | |||||||||||
| Q3 2018 Total Revenue | 804.5 | 826.9 | 10% | 9% | 809.2 | 831.7 | 10% | 10% | ||||||||
| Q3 2018 Software Revenue | 711.2 | 733.7 | 10% | 9% | 715.5 | 738.0 | 10% | 9% | ||||||||
| Q3 2018 Services Revenue | 93.2 | 93.2 | 13% | 13% | 93.7 | 93.7 | 14% | 13% | ||||||||
| Q3 2018 Operating Margin | 18.9% | 21.1% | -0.2pts | 28.9% | 30.9% | -1.1pts | ||||||||||
| Q3 2018 EPS | 0.43 | 0.49 | 20% | 0.65 | 0.71 | 11% | 11% | |||||||||
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Total Software Revenue in
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IFRS under
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IFRS under IAS18 |
Non-IFRS under
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Non-IFRS under IAS18 | ||||||||||||
| Q3 2018 | Q3 2017 | Change in cc* | Q3 2018 | Q3 2017 | Change in cc* | |||||||||||
| Americas | 203.0 | 216.1 | 200.5 | 7% | 205.7 | 218.8 | 200.9 | 8% | ||||||||
| Europe | 294.8 | 303.9 | 277.7 | 8% | 296.1 | 305.2 | 278.7 | 8% | ||||||||
| Asia | 213.4 | 213.7 | 190.9 | 13% | 213.7 | 214.0 | 191.0 | 13% | ||||||||
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*In constant currencies |
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Third Quarter 2018 versus 2017 Financial Comparisons on an IAS 18 Basis
(“IAS 18 IFRS and IAS 18 non-IFRS”)
- On an IAS 18 basis with year over year comparisons at constant currency: Total revenue increased 9% (IFRS) and 10% (non-IFRS). Acquisitions contributed 5 percentages points to the non-IFRS revenue growth rate in the third quarter.
- On an IAS 18 basis and in constant currencies: Software revenue increased 9% (IFRS and non-IFRS). Licenses and other software revenue grew 7% (IFRS and non-IFRS), led by double-digit growth for CATIA, DELMIA, QUINTIQ and BIOVIA. Non-IFRS recurring revenue, comprised of subscription and support revenue, increased 10% and represented 74% of non-IFRS software revenue in the third quarter. On an organic basis, non-IFRS software revenue increased 5% in the third quarter with licenses and other software growth of 4% and recurring software growth of 6%.
- On a regional and IAS 18 basis: Asia non-IFRS software revenue increased 13% led by China and India. Europe non-IFRS software revenue increased 8% led by North Europe and Central Europe as well as Russia. Americas non-IFRS software revenue increased 8%, principally driven by acquisitions and improving results in Latin America. High Growth Countries non-IFRS software revenue increased 15%. (All growth rates are in constant currencies.)
- In the third quarter, 3DEXPERIENCE software revenue was up 14% at constant currency on an IAS 18 basis, with some of the larger transactions of the quarter in Marine & Offshore, Aerospace & Defense, Consumer Packaged Goods-Retail and Transportation & Mobility.
- Services revenue increased 13% in constant currencies (IAS 18 IFRS and non-IFRS) on a year over year basis led by growth in 3DEXPERIENCE services activity as well as the contribution from acquisitions.
- IAS 18 IFRS operating income increased 9.0%. IAS 18 non-IFRS operating income increased 6.6% to €256.6 million. The non-IFRS operating margin was 30.9%, in line with the Company’s objective, compared to 32.0% in the year-ago period, reflecting acquisition dilution of 110 basis points.
- Principally reflecting the U.S. Tax Reform Act of 2017, the Company’s IAS 18 IFRS and non-IFRS effective tax rates decreased to 29.0% and 29.1%, respectively, in the 2018 third quarter compared to 32.9% and 31.4%, respectively, in the 2017 third quarter.
- IAS 18 IFRS diluted net income per share increased 20% as reported. IAS 18 non-IFRS diluted net income per share totaled €0.71, increasing 11% both as reported and at constant currency.
Nine Months Financial Summary
(Unaudited)
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In millions of Euros,
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IFRS under
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IFRS under IAS18 |
Non-IFRS under
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Non-IFRS under IAS18 | ||||||||||||
| YTD 2018 | Change | Change in cc* | YTD 2018 | Change | Change in cc* | |||||||||||
| YTD 2018 Total Revenue | 2,450.9 | 2,433.5 | 5% | 9% | 2,460.5 | 2,443.1 | 5% | 9% | ||||||||
| YTD 2018 Software Revenue | 2,186.4 | 2,169.1 | 5% | 10% | 2,195.6 | 2,178.2 | 5% | 9% | ||||||||
| YTD 2018 Services Revenue | 264.4 | 264.4 | 2% | 6% | 264.9 | 264.9 | 2% | 6% | ||||||||
| YTD 2018 Operating Margin | 20.4% | 19.8% | +0.4pts | 29.9% | 29.4% | -0.0pts | ||||||||||
| YTD 2018 EPS | 1.45 | 1.41 | 16% | 2.06 | 2.01 | 12% | 19% | |||||||||
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Total Software Revenue in
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IFRS under
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IFRS under IAS18 |
Non-IFRS under
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Non-IFRS under IAS18 | ||||||||||||
| YTD 2018 | YTD 2017 | Change in cc* | YTD 2018 | YTD 2017 | Change in cc* | |||||||||||
| Americas | 620.7 | 633.3 | 626.1 | 9% | 626.2 | 638.8 | 629.7 | 9% | ||||||||
| Europe | 926.7 | 906.8 | 855.9 | 7% | 928.5 | 908.6 | 863.2 | 7% | ||||||||
| Asia | 639.0 | 628.9 | 575.8 | 14% | 640.8 | 630.7 | 576.5 | 14% | ||||||||
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*In constant currencies |
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Nine Months 2018 versus 2017 Financial Comparisons on an IAS 18 Basis
(“IAS 18 IFRS and IAS 18 non-IFRS”)
- On an IAS 18 basis and in constant currencies, total revenue grew 9% (IFRS and non-IFRS) with acquisitions contributing three points to the year over year total revenue growth.
- On an IAS 18 basis and in constant currencies: Total software revenue increased 10% (IFRS) and 9% (non-IFRS). Licenses and other software revenue increased 9% (IFRS and non-IFRS), with double-digit growth for CATIA, ENOVIA and DELMIA, well supported by high single-digit growth for SOLIDWORKS. Non-IFRS recurring revenue represented 73% of total software revenue, and grew 9% led by growth in subscription revenue, including the acquisition of EXA, and high support renewal rates in all three regions. On an organic basis excluding acquisitions, total software increased 7% with licenses and other software revenue growth of 8% and recurring software revenue growth of 6%.
- IAS 18 non-IFRS software revenue increased double-digits in constant currencies in Transportation & Mobility, Energy, Process & Utilities, Consumer Goods & Retail and Consumer Packaged Goods & Retail, Marine & Offshore, Natural Resources and Architecture, Engineering & Construction.
- On a regional and IAS 18 basis: Asia non-IFRS software revenue increased 14% with all countries contributing to this strong performance. In Europe non-IFRS software revenue increased 7% with notable performances in North and South Europe as well as Russia. In the Americas, non-IFRS software revenue increased 9% led by Latin America and a solid contribution from North America, including acquisitions. High Growth Countries non-IFRS software revenue increased 18% and represented about 18% of total software revenue. (All growth rates are in constant currencies.)
- 3DEXPERIENCE non-IFRS IAS 18 software revenue increased 19% in constant currencies during the first nine months of 2018 and represented approximately 22% of related software revenue.
- IAS 18 IFRS and non-IFRS services revenue increased 6% in constant currencies, with growth in 3DEXPERIENCE related services, and the contribution from acquisitions.
- IAS 18 IFRS operating income grew 7.4%. IAS 18 non-IFRS operating income totaled €718.6 million, representing an increase of 4.9% as reported and 10% at constant currency. On an IAS 18 non-IFRS basis, the operating margin was 29.4%, stable with the year-ago nine-month period, thanks to underlying operating margin improvement of about 100 basis points offsetting both acquisition dilution of about 70 basis points and negative currency impacts of about 30 basis points.
- The Company’s IAS 18 IFRS and non-IFRS effective tax rates decreased to 26.6% and 28.6%, respectively, for the first nine months of 2018 compared to 32.8% and 32.6%, respectively, in the prior year period principally reflecting US tax law changes enacted in 2017.
- Non-IFRS financial revenue, net totaled €12.4 million, compared to €(0.2) million in the year-ago period on a strong increase in financial net income as well as lower foreign currency exchange losses.
- IAS 18 IFRS diluted net income per share grew 16%. IAS 18 non-IFRS diluted net income per share increased 12% as reported and 19% at constant currency and totaled €2.01.
Business Outlook
(Discussion on an IAS 18, non-IFRS basis, with revenue growth rates in constant currencies)
Pascal Daloz, Dassault Systèmes’ Executive Vice President, CFO and Corporate Strategy Officer, commented, “Based on our solid first half and third quarter aligned with our objectives, year-to-date total revenue and software revenue are higher by 9% at constant currency, our operating margin is stable year on year thanks to underlying operational improvements of 100 basis points enabling us to absorb 70 basis points of dilution from acquisitions as well as negative currency effects. Finally, our earnings per share is up double-digits. Our cash flow from operations increased 11% year over year, reaching €747 million for the first nine months of 2018.
“Turning to the fourth quarter, we are expecting to report another quarter of solid year over year progression, with a total revenue objective of about €1 billion and earnings per share reaching about €1.00. Given the record high quarter we reported for new licenses and other software revenue in the 2017 fourth quarter, we believe these objectives demonstrate very clearly the market opportunity before us. (all figures on an IAS non-IFRS basis)
“Finally, looking to the full year, we are confirming our non-IFRS total revenue growth objective of about 9% to 10% in constant currencies. Based upon our performance to date and fourth quarter outlook, this translates to a target revenue range of €3.425 to €3.450 billion, an operating margin of about 31.5% and EPS of about €2.98 to €3.02, representing growth of 11% to 13% or 16% to 17% at constant currency.” (all figures and related growth rates on an IAS 18 non-IFRS basis)
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.
On July 25, 2018, Dassault Systèmes announced that ExxonMobil has selected the 3DEXPERIENCE platform as part of its digital transformation. This implementation will support the aggregation of engineering data and derive greater value from ExxonMobil’s data across a multitude of tools. A long-time customer of Dassault Systèmes’ simulation, materials science and supply chain planning applications, ExxonMobil is the largest publicly traded energy company in the world and uses technology and innovation to help meet growing energy needs. ExxonMobil will now use the “Capital Facilities Information Excellence” industry solution experience based on the 3DEXPERIENCE platform. In a unified digital environment, ExxonMobil employees can collaborate in real time. Engineers, operations and maintenance personnel will be able to access a single source of information describing the complex assets for which they have responsibility, in order to improve business process control and performance.
Corporate:
On September 14, 2018, Dassault Systèmes announced the launch of SOLIDWORKS 2019, the latest release of its portfolio of 3D design and engineering applications. SOLIDWORKS 2019 delivers enhancements and new features that help millions of innovators improve the product development process to get products into production faster, and create new categories of experiences for new categories of customers in today’s Industry Renaissance. Among the new features are enhanced Large Design Review for greater design flexibility and SOLIDWORKS Extended Reality to experience designs in Virtual Reality and Augmented Reality.
Today’s Webcast and Conference Call Information
Today, Wednesday, October 24, 2018, Dassault Systèmes will first host from London a webcasted meeting at 8:30 AM London Time/ 9:30 AM Paris time and will then 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 one 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.
Key Investor Relations Events
Fourth Quarter 2018 Earnings: February 6, 2019
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 2018 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. Further, 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. 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 2017 Document de Référence (Annual Report) filed with the AMF (French Financial Markets Authority) on March 21, 2018 and also available on the Company’s website www.3ds.com.
In preparing such forward-looking statements, the Company has in particular assumed an average US dollar to euro exchange rate of US$1.20 per €1.00 for the 2018 fourth quarter as well as an average Japanese yen to euro exchange rate of JPY135 to €1.00 for the 2018 fourth quarter before hedging; however, currency values fluctuate, and the Company’s results of operations may be significantly affected by changes in exchange rates.
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 2017 Document de Référence filed with the AMF on March 21, 2018.
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.
This press release constitutes the quarterly financial information required by article L.451-1-2 IV of the French Monetary and Financial Code (Code Monétaire et Financier).
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 220,000 customers of all sizes, in all industries, in more than 140 countries. For more information, visit www.3ds.com.
3DEXPERIENCE, the Compass logo and the 3DS logo, CATIA, SOLIDWORKS, ENOVIA, DELMIA, SIMULIA, GEOVIA, EXALEAD, 3DVIA, BIOVIA, NETVIBES and 3DEXCITE are registered trademarks of Dassault Systèmes or its subsidiaries in the US and/or other countries.
(Tables to Follow)
APPENDIX TABLE OF CONTENTS
(Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.)
Glossary of Definitions
IAS 18
Non-IFRS Financial Information
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cash flow statements
IFRS – non-IFRS reconciliation
IFRS 15
Reconciliation tables IFRS 15 and IAS 18
Reconciliation P&L IFRS 15 and IAS 18
Reconciliation Balance sheet IFRS 15 and IAS 18
Reconciliation Cash flow IFRS 15 and IAS 18
Non-IFRS Financial Information
Condensed consolidated statements of income
Condensed consolidated balance sheets
Condensed consolidated cash flow statements
IFRS – non-IFRS reconciliation
DASSAULT SYSTEMES
Glossary of Definitions
Information in Constant Currencies
We have followed a long-standing policy of measuring our revenue performance and setting our revenue objectives exclusive of currency in order to measure in a transparent manner the underlying level of improvement in our total revenue and software revenue by type, industry, region and product lines. We believe it is helpful to evaluate our growth exclusive of currency impacts, particularly to help understand revenue trends in our business. Therefore, we provide percentage increases or decreases in our revenue and EPS (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 by us "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.
While constant currency calculations are not considered to be an IFRS measure, we do believe these measures are critical to understanding our global revenue results and to compare with many of our competitors who report their financial results in U.S. dollars. Therefore, we are including this calculation for comparing IFRS revenue figures for comparable periods as well as for comparing non-IFRS revenue figures for comparable periods. All constant currency information is provided on an approximate basis. Unless otherwise indicated, the impact of exchange rate fluctuations is approximately the same for both the Company’s IFRS and supplemental non-IFRS financial data.
Information on Growth excluding acquisitions (“organic growth”)
In addition to discussing total growth, we also provide financial information where we discuss growth excluding acquisitions or growth on an organic basis as used alternatively. In both cases, growth excluding acquisitions have been calculated using the following restatements of the scope of consolidation: for entities entering the consolidation scope in the current year, subtracting the contribution of the acquisition from the aggregates of the current year, and for entities entering the consolidation scope in the previous year, subtracting the contribution of the acquisition from January 1st of the current year, until the last day of the month of the current year when the acquisition was made the previous year.
Information on Industrial Sectors
The Company’s global customer base includes companies in 12 industrial sectors: Transportation & Mobility; Industrial Equipment; Aerospace & Defense; Financial & Business Services; High-Tech; Life Sciences; Energy, Process & Utilities; Consumer Goods & Retail; Natural Resources; Architecture, Engineering & Construction; Consumer Packaged Goods & Retail and Marine & Offshore. Commencing in 2012 we implemented an industry go-to-market strategy with the dual objectives of broadening and deepening our presence in our largest industries as well as increasing the contribution from a diversified set of industrial sectors. “Diversification Industries” include: Architecture, Engineering & Construction; Consumer Goods & Retail; Consumer Packaged Goods & Retail; Energy, Process & Utilities; Finance Business Services; High-Tech; Life Sciences; Marine & Offshore; and Natural Resources. “Core Industries” include: Transportation & Mobility, Industrial Equipment, Aerospace & Defense and a portion of Business Services.
3DEXPERIENCE Licenses and Software Contribution
To measure the progressive penetration of 3DEXPERIENCE software, the Company utilizes the following ratios: a) for Licenses revenue, the Company calculates the percentage contribution by comparing total 3DEXPERIENCE Licenses revenue to Licenses revenue for all product lines except SOLIDWORKS and acquisitions (“related Licenses revenue”); and, b) for software revenue, the Company calculates the percentage contribution by comparing total 3DEXPERIENCE software revenue to software revenue for all product lines except SOLIDWORKS and acquisitions (“related software revenue”).
IAS 18
DASSAULT SYSTEMES
NON-IFRS IAS 18 FINANCIAL INFORMATION
(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, certain one-time tax effects and the income tax effects of these non-IFRS adjustments. 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 | Nine months ended | |||||||||||||||
|
September 30,
|
September 30,
|
Change |
Change in
|
September 30,
|
September 30,
|
Change |
Change in
|
||||||||||
| Non-IFRS-IAS18 Revenue | € 831.7 | € 752.9 | 10% | 10% | € 2,443.1 | € 2,329.2 | 5% | 9% | |||||||||
| Non-IFRS-IAS18 Revenue breakdown by activity | |||||||||||||||||
| Software revenue | 738.0 | 670.6 | 10% | 9% | 2,178.2 | 2,069.4 | 5% | 9% | |||||||||
| of which licenses and other software revenue | 188.4 | 175.2 | 8% | 7% | 587.7 | 560.0 | 5% | 9% | |||||||||
| of which subscription and support revenue | 549.5 | 495.4 | 11% | 10% | 1,590.4 | 1,509.4 | 5% | 9% | |||||||||
| Services revenue | 93.7 | 82.3 | 14% | 13% | 264.9 | 259.8 | 2% | 6% | |||||||||
| Non-IFRS-IAS18 software revenue breakdown by product line | |||||||||||||||||
| CATIA software revenue | 246.5 | 230.3 | 7% | 7% | 738.4 | 716.4 | 3% | 6% | |||||||||
| ENOVIA software revenue | 81.8 | 77.6 | 5% | 5% | 242.5 | 235.7 | 3% | 7% | |||||||||
| SOLIDWORKS software revenue | 177.5 | 166.2 | 7% | 4% | 537.8 | 517.1 | 4% | 9% | |||||||||
| Other software revenue | 232.2 | 196.5 | 18% | 18% | 659.5 | 600.2 | 10% | 15% | |||||||||
| Non-IFRS-IAS18 Revenue breakdown by geography | |||||||||||||||||
| Americas | 257.0 | 227.9 | 13% | 12% | 734.5 | 721.7 | 2% | 9% | |||||||||
| Europe | 344.0 | 317.3 | 8% | 7% | 1,023.7 | 977.5 | 5% | 6% | |||||||||
| Asia | 230.7 | 207.7 | 11% | 12% | 684.9 | 630.0 | 9% | 14% | |||||||||
| Non-IFRS-IAS18 operating income | € 256.6 | € 240.7 | 7% | € 718.6 | € 685.2 | 5% | |||||||||||
| Non-IFRS-IAS18 operating margin | 30.9% | 32.0% | 29.4% | 29.4% | |||||||||||||
| Non-IFRS net income attributable to shareholders | € 184.8 | € 165.6 | 12% | € 523.8 | € 460.7 | 14% | |||||||||||
| Non-IFRS-IAS18 diluted net income per share | € 0.71 | € 0.64 | 11% | 11% | € 2.01 | € 1.79 | 12% | 19% | |||||||||
| Closing headcount | 16,721 | 15,562 | 7% | 16,721 | 15,562 | 7% | |||||||||||
| Average Rate USD per Euro | 1.16 | 1.17 | -1% | 1.19 | 1.11 | 7% | |||||||||||
| Average Rate JPY per Euro | 129.60 | 130.30 | -1% | 130.90 | 124.70 | 5% | |||||||||||
|
* In constant currencies |
|||||||||||||||||
IAS 18
DASSAULT SYSTEMES
ACQUISITIONS AND FOREIGN EXCHANGE IMPACT
| in millions of Euros | Non-IFRS reported |
o/w Growth
|
o/w
|
o/w
|
|||||||||
| 2018 | 2017 | Change MEUR | |||||||||||
| Revenue QTD | 831.7 | 752.9 | 78.8 | 41 | 33 | 5 | |||||||
| REVENUE YTD | 2443.1 | 2329.2 | 113.9 | 132 | 71 | -88 | |||||||
|
(1) Growth at constant rate and constant scope |
|||||||||||||
|
(2) Change of scope impact at current year rate |
|||||||||||||
|
(3) FX impact on previous year figures |
|||||||||||||
IAS 18
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IFRS)
(unaudited; in millions of Euros, except per share data)
|
In millions of Euros, except per share data and
|
Three months ended | Nine months ended | |||||||
|
September 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||
| Licenses and other software revenue | 188.4 | 175.2 | 587.7 | 560.0 | |||||
| Subscription and Support revenue | 545.3 | 493.9 | 1,581.3 | 1,497.8 | |||||
| Software revenue | 733.7 | 669.1 | 2,169.1 | 2,057.8 | |||||
| Services revenue | 93.2 | 82.3 | 264.4 | 259.8 | |||||
| Total Revenue IFRS -IAS18 | € 826.9 | € 751.4 | € 2,433.5 | € 2,317.6 | |||||
|
Cost of software revenue (excluding amortization
|
(39.0) | (38.0) | (118.0) | (116.4) | |||||
| Cost of services and other revenue | (87.2) | (72.7) | (248.4) | (234.5) | |||||
| Research and development | (153.8) | (140.6) | (467.8) | (446.5) | |||||
| Marketing and sales | (256.5) | (232.1) | (772.3) | (750.4) | |||||
| General and administrative | (70.1) | (60.5) | (209.6) | (182.3) | |||||
| Amortization of acquired intangibles | (43.8) | (39.1) | (126.3) | (119.6) | |||||
| Other operating income and expense, net | (2.2) | (8.5) | (9.1) | (19.1) | |||||
| Total Operating Expenses | (652.6) | (591.5) | (1,951.6) | (1,868.8) | |||||
| Operating Income | € 174.3 | € 159.9 | € 481.9 | € 448.8 | |||||
| Financial revenue and other, net | 3.5 | (1.6) | 12.6 | 20.9 | |||||
| Income before income taxes | 177.8 | 158.3 | 494.5 | 469.7 | |||||
| Income tax expense | (51.5) | (52.1) | (131.7) | (154.2) | |||||
| Net Income | € 126.3 | € 106.2 | € 362.8 | € 315.5 | |||||
| Non-controlling interest | 2.7 | 0.3 | 3.1 | (1.0) | |||||
|
Net Income attributable to equity holders of
|
€ 129.0 | € 106.5 | € 365.9 | € 314.5 | |||||
| Basic net income per share | 0.50 | 0.42 | 1.42 | 1.23 | |||||
| Diluted net income per share | € 0.49 | € 0.41 | € 1.41 | € 1.22 | |||||
|
Basic weighted average shares outstanding (in
|
259.7 | 255.5 | 258.3 | 254.7 | |||||
|
Diluted weighted average shares outstanding (in
|
260.8 | 258.5 | 260.1 | 258.0 | |||||
| Three months ended September 30, 2018 | Nine months ended September 30, 2018 | ||||||||
| Change* | Change in cc** | Change* | Change in cc** | ||||||
| IFRS Revenue IFRS -IAS18 | 10% | 9% | 5% | 9% | |||||
| IFRS Revenue by activity | |||||||||
| Software revenue | 10% | 9% | 5% | 10% | |||||
| Services revenue | 13% | 13% | 2% | 6% | |||||
| IFRS Software Revenue by product line | |||||||||
| CATIA software revenue | 7% | 6% | 3% | 5% | |||||
| ENOVIA software revenue | 5% | 5% | 3% | 7% | |||||
| SOLIDWORKS software revenue | 7% | 4% | 4% | 9% | |||||
| Other software revenue | 17% | 18% | 11% | 16% | |||||
| IFRS Revenue by geography | |||||||||
| Americas | 12% | 10% | 1% | 9% | |||||
| Europe | 8% | 7% | 5% | 7% | |||||
| Asia | 11% | 12% | 9% | 14% | |||||
|
*Variation compared to the same period in the prior year. **In constant currencies |
|||||||||
IAS 18
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEETS (IFRS)
(unaudited; in millions of Euros)
|
In millions of Euros |
September 30,
|
December 31,
|
|||
| ASSETS | |||||
| Cash and cash equivalents | 2,745.8 | 2,459.4 | |||
| Short-term investments | 0.5 | 1.3 | |||
| Accounts receivable, net | 634.9 | 895.9 | |||
| Other current assets | 286.5 | 242.9 | |||
| Total current assets | 3,667.7 | 3,599.5 | |||
| Property and equipment, net | 169.6 | 169.0 | |||
| Goodwill and Intangible assets, net | 3,314.6 | 2,990.1 | |||
| Other non-current assets | 316.9 | 271.2 | |||
| Total Assets | € 7,468.8 | € 7,029.8 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Accounts payable | 139.3 | 149.3 | |||
| Unearned revenues | 894.9 | 876.4 | |||
| Short-term debt | 350.0 | 0.0 | |||
| Other current liabilities | 443.4 | 501.7 | |||
| Total current liabilities | 1,827.6 | 1,527.4 | |||
| Long-term debt | 650.0 | 1,000.0 | |||
| Other non-current obligations | 615.6 | 506.3 | |||
| Total long-term liabilities | 1,265.6 | 1,506.3 | |||
| Non-controlling interests | 58.4 | 1.9 | |||
| Parent shareholders' equity | 4,317.2 | 3,994.2 | |||
| Total Liabilities and Shareholders' equity | € 7,468.8 | € 7,029.8 | |||
IAS 18
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (IFRS)
| In millions of Euros | Three months ended | Nine months ended | |||||||||||
|
September 30,
|
September 30,
|
Change |
September 30,
|
September 30,
|
Change | ||||||||
| Net Income attributable to equity holders of the parent | 129.0 | 106.5 | 22.5 | 365.9 | 314.5 | 51.4 | |||||||
| Non-controlling interest |
(2.7) |
(0.3) |
(2.4) |
(3.1) |
1.0 |
(4.1) |
|||||||
| Net Income | 126.3 | 106.2 | 20.1 | 362.8 | 315.5 | 47.3 | |||||||
| Depreciation of property & equipment | 14.3 | 13.9 | 0.4 | 42.5 | 36.8 | 5.7 | |||||||
| Amortization of intangible assets | 45.9 | 40.9 | 5.0 | 132.9 | 125.5 | 7.4 | |||||||
| Other non cash P&L items | 12.7 | 27.1 | (14.4) | 45.8 | 37.5 | 8.3 | |||||||
| Changes in working capital | (98.1) | (108.7) | 10.6 | 162.6 | 156.5 | 6.1 | |||||||
| Net Cash provided by operating activities | € 101.1 | € 79.4 | € 21.7 | € 746.6 | € 671.8 | € 74.8 | |||||||
| Additions to property, equipment and intangibles | (16.9) | (17.7) | 0.8 | (48.2) | (63.5) | 15.3 | |||||||
| Payments for acquisition of businesses, net of cash acquired | (195.7) | (2.8) | (192.9) | (247.3) | (10.8) | (236.5) | |||||||
| Sale (purchase) of short term investments, net | - | (0.1) | 0.1 | 0.7 | 3.6 | (2.9) | |||||||
| Investments, loans and others | 0.2 | 0.8 | (0.6) | (1.3) | 7.2 | (8.5) | |||||||
| Net Cash provided by (used in) investing activities | (€ 212.4) | (€ 19.8) | (€ 192.6) | (€ 296.1) | (€ 63.5) | (€ 232.6) | |||||||
| Acquisition of non-controlling interests | (75.3) | (23.4) | (51.9) | (101.5) | (37.5) | (64.0) | |||||||
| Repayment of short term and long term debt | (14.9) | - | (14.9) | (14.9) | - | (14.9) | |||||||
| (Purchase) Sale of treasury stock | (111.6) | (19.2) | (92.4) | (113.9) | (64.0) | (49.9) | |||||||
| Proceeds from exercise of stock-options | 15.5 | 12.0 | 3.5 | 59.2 | 33.8 | 25.4 | |||||||
| Cash dividend paid | - | - | - | (38.0) | (51.3) | 13.3 | |||||||
| Net Cash provided by (used in) financing activities | (€ 186.3) | (€ 30.6) | (€ 155.7) | (€ 209.1) | (€ 119.0) | (€ 90.1) | |||||||
| Effect of exchange rate changes on
cash and cash equivalents |
0.2 | (56.3) | 56.5 | 45.0 | (184.1) | 229.1 | |||||||
| Increase (decrease) in cash and cash equivalents | (€ 297.4) | (€ 27.3) | (€ 270.1) | € 286.4 | € 305.2 | (€ 18.8) | |||||||
| Cash and cash equivalents at beginning of period | € 3,043.2 | € 2,769.2 | € 2,459.4 | € 2,436.7 | |||||||||
| Cash and cash equivalents at end of period | € 2,745.8 | € 2,741.9 | € 2,745.8 | € 2,741.9 | |||||||||
IAS 18
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, 2017 filed with the AMF on March 21, 2018. 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 September 30, | Change | |||||||||||||||
|
2018
|
Adjustment
|
2018
|
2017
|
Adjustment
|
2017
|
IFRS |
Non-IFRS
|
||||||||||
| Total Revenue IAS18 | € 826.9 | € 4.8 | € 831.7 | € 751.4 | € 1.5 | € 752.9 | 10% | 10% | |||||||||
| Total Revenue IAS18 breakdown by activity | |||||||||||||||||
| Software revenue | 733.7 | 4.3 | 738.0 | 669.1 | 1.5 | 670.6 | 10% | 10% | |||||||||
| Licenses and other software revenue | 188.4 | 188.4 | 175.2 | 175.2 | 8% | 8% | |||||||||||
| Subscription and Support revenue | 545.3 | 4.3 | 549.5 | 493.9 | 1.5 | 495.4 | 10% | 11% | |||||||||
| Recurring portion of Software revenue | 74% | 74% | 74% | 74% | |||||||||||||
| Services revenue | 93.2 | 0.5 | 93.7 | 82.3 | 82.3 | 13% | 14% | ||||||||||
|
Total Software Revenue IA18 breakdown by product
|
|||||||||||||||||
| CATIA software revenue | 245.3 | 1.2 | 246.5 | 230.3 | 230.3 | 7% | 7% | ||||||||||
| ENOVIA software revenue | 81.8 | 81.8 | 77.6 | 77.6 | 5% | 5% | |||||||||||
| SOLIDWORKS software revenue | 177.5 | 177.5 | 166.2 | 166.2 | 7% | 7% | |||||||||||
| Other software revenue | 229.1 | 3.1 | 232.2 | 195.0 | 1.5 | 196.5 | 17% | 18% | |||||||||
| Total Revenue IAS18 breakdown by geography | |||||||||||||||||
| Americas | 254.0 | 2.9 | 257.0 | 227.5 | 0.4 | 227.9 | 12% | 13% | |||||||||
| Europe | 342.4 | 1.6 | 344.0 | 316.3 | 1.0 | 317.3 | 8% | 8% | |||||||||
| Asia | 230.4 | 0.3 | 230.7 | 207.6 | 0.1 | 207.7 | 11% | 11% | |||||||||
| Total Operating Expenses | (€ 652.6) | € 77.5 | (€ 575.1) | (€ 591.5) | € 79.3 | (€ 512.2) | 10% | 12% | |||||||||
| Share-based compensation expense | (31.5) | 31.5 | - | (31.7) | 31.7 | - | |||||||||||
| Amortization of acquired intangibles | (43.8) | 43.8 | - | (39.1) | 39.1 | - | |||||||||||
| Other operating income and expense, net | (2.2) | 2.2 | - | (8.5) | 8.5 | - | |||||||||||
| Operating Income | € 174.3 | € 82.3 | € 256.6 | € 159.9 | € 80.8 | € 240.7 | 9% | 7% | |||||||||
| Operating Margin | 21.1% | 30.9% | 21.3% | 32.0% | |||||||||||||
| Financial revenue & other, net | 3.5 | (1.3) | 2.2 | (1.6) | 1.9 | 0.4 | N/A | N/A | |||||||||
| Income tax expense | (51.5) | (23.7) | (75.3) | (52.1) | (23.8) | (75.8) | -1% | -1% | |||||||||
| Non-controlling interest | 2.7 | (1.4) | 1.3 | 0.3 | 0.3 | ||||||||||||
| Net Income attributable to shareholders | € 129.0 | € 55.8 | € 184.8 | € 106.5 | € 59.1 | € 165.6 | 21% | 12% | |||||||||
| Diluted Net Income Per Share (3) | € 0.49 | € 0.22 | € 0.71 | € 0.41 | € 0.23 | € 0.64 | 20% | 11% | |||||||||
(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 for net income and diluted net income per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.
| In millions of Euros | Three months ended September 30, | Change | |||||||||||||||
| 2018 IFRS | Adjustment |
2018
|
2017 IFRS | Adjustment |
2017
|
IFRS | Non-IFRS | ||||||||||
| Cost of revenue | (126.2) | 1.3 | (124.9) | (110.8) | 1.2 | (109.6) | 14% | 14% | |||||||||
| Research and development | (153.8) | 12.0 | (141.8) | (140.6) | 12.4 | (128.1) | 9% | 11% | |||||||||
| Marketing and sales | (256.5) | 8.4 | (248.1) | (232.1) | 10.9 | (221.2) | 11% | 12% | |||||||||
| General and administrative | (70.1) | 9.7 | (60.3) | (60.5) | 7.2 | (53.3) | 16% | 13% | |||||||||
| Total share-based compensation expense | € 31.5 | € 31.7 | |||||||||||||||
(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 260.8 million diluted shares for Q3 2018 and 258.5 million diluted shares for Q3 2017.
IAS 18
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, 2017 filed with the AMF on March 21, 2018. 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 | Nine months ended September 30, | Change | |||||||||||||||
|
2018
|
Adjustment (1) |
2018
|
2017
|
Adjustment (1) |
2017
|
IFRS | Non-IFRS (2) | ||||||||||
| Total Revenue IAS18 | € 2,433.5 | € 9.6 | € 2,443.1 | € 2,317.6 | € 11.6 | € 2,329.2 | 5% | 5% | |||||||||
| Total Revenue IAS18 breakdown by activity | |||||||||||||||||
| Software revenue | 2,169.1 | 9.1 | 2,178.2 | 2,057.8 | 11.6 | 2,069.4 | 5% | 5% | |||||||||
| Licenses and other software revenue | 587.7 | 587.7 | 560.0 | 560.0 | 5% | 5% | |||||||||||
| Subscription and Support revenue | 1,581.3 | 9.1 | 1,590.4 | 1,497.8 | 11.6 | 1,509.4 | 6% | 5% | |||||||||
| Recurring portion of Software revenue | 73% | 73% | 73% | 73% | |||||||||||||
| Services revenue | 264.4 | 0.5 | 264.9 | 259.8 | 259.8 | 2% | 2% | ||||||||||
| Total Software Revenue IA18 breakdown by product line | |||||||||||||||||
| CATIA software revenue | 736.7 | 1.7 | 738.4 | 716.4 | 716.4 | 3% | 3% | ||||||||||
| ENOVIA software revenue | 242.5 | 242.5 | 235.7 | 235.7 | 3% | 3% | |||||||||||
| SOLIDWORKS software revenue | 537.8 | 537.8 | 517.1 | 517.1 | 4% | 4% | |||||||||||
| Other software revenue | 652.1 | 7.5 | 659.5 | 588.6 | 11.6 | 600.2 | 11% | 10% | |||||||||
| Total Revenue IAS18 breakdown by geography | |||||||||||||||||
| Americas | 728.8 | 5.7 | 734.5 | 718.2 | 3.5 | 721.7 | 1% | 2% | |||||||||
| Europe | 1,021.6 | 2.1 | 1,023.7 | 970.2 | 7.3 | 977.5 | 5% | 5% | |||||||||
| Asia | 683.1 | 1.8 | 684.9 | 629.2 | 0.8 | 630.0 | 9% | 9% | |||||||||
| Total Operating Expenses | (€ 1,951.6) | 227.0 | (€ 1,724.5) | (€ 1,868.8) | 224.8 | (€ 1,644.0) | 4% | 5% | |||||||||
| Share-based compensation expense | (91.6) | 91.6 | - | (86.1) | 86.1 | - | |||||||||||
| Amortization of acquired intangibles | (126.3) | 126.3 | - | (119.6) | 119.6 | - | |||||||||||
| Other operating income and expense, net | (9.1) | 9.1 | - | (19.1) | 19.1 | - | |||||||||||
| Operating Income | € 481.9 | 236.7 | € 718.6 | € 448.8 | 236.4 | € 685.2 | 7% | 5% | |||||||||
| Operating Margin | 19.8% | 29.4% | 19.4% | 29.4% | |||||||||||||
| Financial revenue & other, net | 12.6 | (0.2) | 12.4 | 20.9 | (20.7) | 0.2 | -40% | N/A | |||||||||
| Income tax expense | (131.7) | (77.2) | (208.9) | (154.2) | (69.5) | (223.7) | -15% | -7% | |||||||||
| Non-controlling interest | 3.1 | (1.4) | 1.7 | (1.0) | (1.0) | ||||||||||||
| Net Income attributable to shareholders | € 365.9 | 157.9 | € 523.8 | € 314.5 | 146.2 | € 460.7 | 16% | 14% | |||||||||
| Diluted Net Income Per Share (3) | € 1.41 | 0.60 | € 2.01 | € 1.22 | 0.57 | € 1.79 | 16% | 12% | |||||||||
(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 for net income and diluted net income per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.
| In millions of Euros | Nine months ended September 30, | Change | |||||||||||||||
| 2018 IFRS | Adjustment |
2018
|
2017 IFRS | Adjustment |
2017
|
IFRS | Non-IFRS | ||||||||||
| Cost of revenue | (366.4) | 3.4 | (363.0) | (350.9) | 3.4 | (347.6) | 4% | 4% | |||||||||
| Research and development | (467.8) | 35.1 | (432.7) | (446.5) | 35.5 | (411.0) | 5% | 5% | |||||||||
| Marketing and sales | (772.3) | 22.3 | (750.0) | (750.4) | 29.0 | (721.4) | 3% | 4% | |||||||||
| General and administrative | (209.6) | 30.9 | (178.8) | (182.3) | 18.2 | (164.1) | 15% | 9% | |||||||||
| Total share-based compensation expense | € 91.6 | € 86.1 | |||||||||||||||
(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 260.1 million diluted shares for YTD 2018 and 258.0 million diluted shares for YTD 2017.
Summary of Principal Differences of IFRS 15 Compared to IAS 18
The Company has adopted IFRS 15 as of January 1, 2018 using the modified retrospective transition method (also called the cumulative effect method). Under this method, the transition effect is accounted for within the consolidated equity at the date of initial application, i.e. January 1, 2018, without any adjustment to the prior year comparative information. See also the Company’s 2017 Document de Référence (Annual Report) for further information.
- Recurring software: Recurring software is comprised of subscription and support revenue. IFRS 15 has an impact on the timing of the quarterly recognition of subscription revenue but on a full year basis there is essentially no difference between IFRS 15 and the prior IAS 18 standard for subscription contracts of one year in length. For the 2018 3rd quarter, IFRS recurring software revenue was €523.2 million under IFRS 15 and was €22.1 million less compared to the prior IAS 18 standard. Previously, under IAS 18, we showed a ratable quarterly amount based upon the annual contract level of our on-premise subscription software. Under IFRS 15, for new contracts entered into or for contracts renewing, we have assigned an upfront value as required which is recognized in the first quarter of the contract, and the remainder which is recognized ratably during the four quarters. We continue to report both of these amounts within recurring revenue, specifically as subscription revenue (previously called periodic revenue).
- Operating expenses and sales commissions: The Company continues to expense sales commissions under the IFRS 15 standard as was done under IAS 18. Therefore, there are no capitalized sales commissions. As a result, the Company’s operating expenses are identical under IFRS 15 and the prior IAS 18 standard.
- One-time permanent difference: The implementation of IFRS 15 on January 1, 2018 resulted in a one-time permanent difference between IFRS 15 and IAS 18, where the deferred portion of subscription agreements concluded in prior years will not be recognized into revenue. As a result, the corresponding amount of €80 million, net of taxes (€110 million before) was recorded in stockholders’ equity as of January 1, 2018.
- Initial impact on unearned revenue: At September 30, 2018 unearned revenue on the Balance Sheet under IFRS 15 is not directly comparable to the December 31, 2017 balance sheet under the prior standard IAS 18. This is due to the fact that the September 30, 2018 balance sheet line item unearned revenue has been reduced by €110 million, reflecting mainly (i) the one-time permanent difference of €94 million, and (ii) the higher amount of revenue recognized in the first nine months under IFRS 15 compared to IAS 18 in the amount of €17 million.
- Contract Assets: Under IFRS 15, the Company classifies the right to consideration in exchange for products or services transferred to a client as either a receivable or a contract asset. Contract assets amounted to €32 million as at January 1, 2018 (1st application impact) and to €38 million as at September 30, 2018.
DASSAULT SYSTEMES
RECONCILIATION P&L NON-IFRS IFRS 15 vs NON-IFRS IAS 18
(unaudited; in millions of Euros except per share data)
| In millions of Euros, except per share data and percentages | 2018 Non-IFRS | 2018 Non-IFRS | |||||||||||
|
QTD
|
Adjustment
|
QTD
|
YTD
|
Adjustment
|
YTD
|
||||||||
| Total Revenue | € 809.2 | 22.4 | € 831.7 | € 2,460.5 | (17.4) | € 2,443.1 | |||||||
| Total Revenue breakdown by activity | |||||||||||||
| Software revenue | 715.5 | 22.4 | 738.0 | 2,195.6 | (17.4) | 2,178.2 | |||||||
| Licenses and Other software revenue | 188.1 | 0.4 | 188.4 | 584.7 | 3.1 | 587.7 | |||||||
| Subscription and Support revenue | 527.5 | 22.1 | 549.5 | 1,610.9 | (20.4) | 1,590.4 | |||||||
| Recurring portion of Software revenue | 74% | 74% | 73% | 73% | |||||||||
| Services revenue | 93.7 | 93.7 | 264.9 | 264.9 | |||||||||
| Total Software Revenue breakdown by product line | |||||||||||||
| CATIA software revenue | 241.4 | 5.1 | 246.5 | 742.4 | (4.1) | 738.4 | |||||||
| ENOVIA software revenue | 80.6 | 1.2 | 81.8 | 242.6 | (0.1) | 242.5 | |||||||
| SOLIDWORKS software revenue | 177.5 | (0.0) | 177.5 | 533.2 | 4.5 | 537.8 | |||||||
| Other software revenue | 215.9 | 16.3 | 232.2 | 677.3 | (17.8) | 659.5 | |||||||
| Total Revenue breakdown by geography | |||||||||||||
| Americas | 243.9 | 13.1 | 257.0 | 721.9 | 12.6 | 734.5 | |||||||
| Europe | 334.9 | 9.1 | 344.0 | 1,043.6 | (19.9) | 1,023.7 | |||||||
| Asia | 230.5 | 0.2 | 230.7 | 695.0 | (10.1) | 684.9 | |||||||
| Total Operating Expenses | (€ 575.1) |
(€ 575.1) |
(€1,724.5) |
(€1,724.5) |
|||||||||
| Share-based compensation expense | - | - | - | - | |||||||||
| Amortization of acquired intangibles | - | - | - | - | |||||||||
| Other operating income and expense, net | - | - | - | - | |||||||||
| Operating Income | € 234.2 | 22.4 | € 256.6 | € 736.0 | (17.4) | € 718.6 | |||||||
| Operating Margin | 28.9% | +1.9pts | 30.9% | 29.9% | -0.5pts | 29.4% | |||||||
| Financial revenue & other, net | 2.2 | 2.2 | 12.4 | 12.4 | |||||||||
| Income tax expense | (68.9) | (6.4) | (75.3) | (213.8) | 4.9 | (208.9) | |||||||
| Non-controlling interest | 1.3 | 1.3 | 1.7 | 1.7 | |||||||||
| Net Income attributable to shareholders | € 168.7 | 16.1 | € 184.8 | € 536.3 | (12.5) | € 523.8 | |||||||
| Diluted Net Income Per Share (3) | € 0.65 | 0.06 | € 0.71 | € 2.06 | (0,05) | € 2.01 | |||||||
| 2018 Non-IFRS | 2018 Non-IFRS | ||||||||||||
| In millions of Euros |
2018
|
Adjustment |
2018
|
2018
|
Adjustment |
2018
|
|||||||
| Cost of revenue | (124.9) | (124.9) | (363.0) | (363.0) | |||||||||
| Research and development | (141.8) | (141.8) | (432.7) | (432.7) | |||||||||
| Marketing and sales | (248.1) | (248.1) | (750.0) | (750.0) | |||||||||
| General and administrative | (60.3) | (60.3) | (178.8) | (178.8) | |||||||||
| Total share-based compensation expense | |||||||||||||
DASSAULT SYSTEMES
RECONCILIATION BALANCE SHEET IFRS 15 vs IAS 18
(unaudited; in millions of Euros)
| In millions of Euros |
IFRS15 Basis
|
Difference |
IAS 18 Basis
|
||||
| ASSETS | |||||||
| Cash and cash equivalents | 2,745.8 | - | 2,745.8 | ||||
| Short-term investments | 0.5 | - | 0.5 | ||||
| Accounts receivable, net | 616.3 | 18.6 | 634.9 | ||||
| Contract assets | 38.3 | (38.3) | |||||
| Other current assets | 266.0 | 20.5 | 286.5 | ||||
| Total current assets | 3,666.9 | 0.8 | 3,667.7 | ||||
| Property and equipment, net | 169.6 | - | 169.6 | ||||
| Goodwill and Intangible assets, net | 3,314.6 | - | 3,314.6 | ||||
| Other non-current assets | 308.6 | 8.3 | 316.9 | ||||
| Total Assets | € 7,459.8 | € 9.0 | € 7,468.8 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Accounts payable | 139.3 | 0 | 139.3 | ||||
| Contract liabilities - Unearned revenues | 785.3 | 109.6 | 894.9 | ||||
| Short-term debt | 350.0 | 0.0 | 350.0 | ||||
| Other current liabilities | 443.4 | 0.0 | 443.4 | ||||
| Total current liabilities | 1,718.0 | 109.6 | 1,827.6 | ||||
| Long-term debt | 650.0 | - | 650.0 | ||||
| Other non-current obligations | 621.4 | (5.80) | 615.6 | ||||
| Total long-term liabilities | 1,271.4 | (5.80) | 1,265.6 | ||||
| Non-controlling interests | 58.4 | - | 58.4 | ||||
| Parent shareholders' equity | 4,412.0 | (94.8) | 4,317.2 | ||||
| Total Liabilities and Shareholders' equity | € 7,459.8 | € 9.0 | € 7,468.8 | ||||
DASSAULT SYSTEMES
RECONCILIATION CASH FLOW IFRS 15 vs IAS 18
(unaudited; in millions of Euros)
| In millions of Euros | Three months ended September 30, 2018 | Nine months ended September 30, 2018 | |||||||||||
| IFRS 15 | Difference | IAS 18 | IFRS 15 | Difference | IAS 18 | ||||||||
| Net Income attributable to equity holders of the parent | 112.9 | 16.1 | 129.0 | 378.4 | (12.5) | 365.9 | |||||||
| Non-controlling interest |
(2.7) |
- |
(2.7) |
(3.1) |
- |
(3.1) |
|||||||
| Net Income | 110.2 | 16.1 | 126.3 | 375.3 | (12.5) | 362.8 | |||||||
| Depreciation of property & equipment | 14.3 | - | 14.3 | 42.5 | - | 42.5 | |||||||
| Amortization of intangible assets | 45.9 | - | 45.9 | 132.9 | - | 132.9 | |||||||
| Other non cash P&L items | 12.7 | - | 12.7 | 45.8 | - | 45.8 | |||||||
| Changes in working capital | (82.0) | (16.1) | (98.1) | 150.1 | 12.5 | 162.6 | |||||||
| Net Cash provided by operating activities | € 101.1 | € 0.0 | € 101.1 | € 746.6 | € 0.0 | € 746.6 | |||||||
| Additions to property, equipment and intangibles | (16.9) | - | (16.9) | (48.2) | - | (48.2) | |||||||
| Payments for acquisition of businesses, net of cash acquired | (195.7) | - | (195.7) | (247.3) | - | (247.3) | |||||||
| Sale (purchase) of short term investments, net | - | - | - | 0.7 | - | 0.7 | |||||||
| Investments, loans and others | 0.2 | - | 0.2 | (1.3) | - | (1.3) | |||||||
| Net Cash provided by (used in) investing activities | (€ 212.4) | - | (€ 212.4) | (€ 296.1) | - | (€ 296.1) | |||||||
| Acquisition of non-controlling interests | (75.3) | - | (75.3) | (101.5) | - | (101.5) | |||||||
| Repayment of short term and long term debt | (14.9) | - | (14.9) | (14.9) | - | (14.9) | |||||||
| (Purchase) Sale of treasury stock | (111.6) | - | (111.6) | (113.9) | - | (113.9) | |||||||
| Proceeds from exercise of stock-options | 15.5 | - | 15.5 | 59.2 | - | 59.2 | |||||||
| Cash dividend paid | - | - | - | (38.0) | - | (38.0) | |||||||
| Net Cash provided by (used in) financing activities | (€ 186.3) | - | (€ 186.3) | (€ 209.1) | - | (€ 209.1) | |||||||
| Effect of exchange rate changes on
cash and cash equivalents |
0.2 | - | 0.2 | 45.0 | - | 45.0 | |||||||
| Increase (decrease) in cash and cash equivalents | (€ 297.4) | - | (€ 297.4) | € 286.4 | - | € 286.4 | |||||||
| Cash and cash equivalents at beginning of period | € 3,043.2 | - | € 3,043.2 | € 2,459.4 | - | € 2,459.4 | |||||||
| Cash and cash equivalents at end of period | € 2,745.8 | - | € 2,745.8 | € 2,745.8 | - | € 2,745.8 | |||||||
IFRS 15
DASSAULT SYSTEMES
NON-IFRS IFRS 15 FINANCIAL INFORMATION
(unaudited; in millions of Euros, except per share data, headcount and exchange rates)
| In millions of Euros, except per share data and percentages | Three months ended | Nine months ended | |||
|
September 30,
|
September 30,
|
||||
| Non-IFRS-IFRS15 Revenue | € 809.2 | € 2,460.5 | |||
| Non-IFRS-IFRS15 Revenue breakdown by activity | |||||
| Software revenue | 715.5 | 2,195.6 | |||
| of which licenses and other software revenue | 188.1 | 584.7 | |||
| of which subscription and support revenue | 527.5 | 1,610.9 | |||
| Services revenue | 93.7 | 264.9 | |||
| Non-IFRS-IFRS15 software revenue breakdown by product line | |||||
| CATIA software revenue | 241.4 | 742.4 | |||
| ENOVIA software revenue | 80.6 | 242.6 | |||
| SOLIDWORKS software revenue | 177.5 | 533.2 | |||
| Other software revenue | 215.9 | 677.3 | |||
| Non-IFRS-IFRS15 Revenue breakdown by geography | |||||
| Americas | 243.9 | 721.9 | |||
| Europe | 334.9 | 1,043.6 | |||
| Asia | 230.5 | 695.0 | |||
| Non-IFRS-IFRS15 operating income | € 234.2 | € 736.0 | |||
| Non-IFRS-IFRS15 operating margin | 28.9% | 29.9% | |||
| Non-IFRS net income attributable to shareholders | € 168.7 | € 536.3 | |||
| Non-IFRS-IFRS15 diluted net income per share | € 0.65 | € 2.06 | |||
| Closing headcount | 16,721 | 16,721 | |||
| Average Rate USD per Euro | 1.16 | 1.19 | |||
| Average Rate JPY per Euro | 129.60 | 130.90 | |||
IFRS 15
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED STATEMENT OF INCOME (IFRS)
(unaudited; in millions of Euros, except per share data)
|
In millions of Euros, except per share data and
|
Three months
|
Nine months
|
|||
|
September 30,
|
September 30,
|
||||
| Licenses and other software revenue | 188.1 | 584.7 | |||
| Subscription and Support revenue | 523.2 | 1,601.8 | |||
| Software revenue | 711.2 | 2,186.4 | |||
| Services revenue | 93.2 | 264.4 | |||
| Total Revenue IFRS -IFRS15 | € 804.5 | € 2,450.9 | |||
|
Cost of software revenue (excluding amortization
|
(39.0) | (118.0) | |||
| Cost of services and other revenue | (87.2) | (248.4) | |||
| Research and development | (153.8) | (467.8) | |||
| Marketing and sales | (256.5) | (772.3) | |||
| General and administrative | (70.1) | (209.6) | |||
| Amortization of acquired intangibles | (43.8) | (126.3) | |||
| Other operating income and expense, net | (2.2) | (9.1) | |||
| Total Operating Expenses | (652.6) | (1,951.6) | |||
| Operating Income | € 151.9 | € 499.3 | |||
| Financial revenue and other, net | 3.5 | 12.6 | |||
| Income before income taxes | 155.3 | 511.9 | |||
| Income tax expense | (45.1) | (136.6) | |||
| Net Income | € 110.2 | € 375.3 | |||
| Non-controlling interest | 2.7 | 3.1 | |||
|
Net Income attributable to equity holders of
|
€ 112.9 | € 378.4 | |||
| Basic net income per share | 0.43 | 1.47 | |||
| Diluted net income per share | € 0.43 | € 1.45 | |||
|
Basic weighted average shares outstanding (in
|
259.7 | 258.3 | |||
|
Diluted weighted average shares outstanding (in
|
260.8 | 260.1 | |||
IFRS 15
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED BALANCE SHEET (IFRS)
(unaudited; in millions of Euros)
| In millions of Euros |
September 30,
|
December 31,
|
|||
| ASSETS | |||||
| Cash and cash equivalents | 2,745.8 | 2,459.4 | |||
| Short-term investments | 0.5 | 1.3 | |||
| Accounts receivable, net | 616.3 | 895.9 | |||
| Contract assets | 38.3 | 0.0 | |||
| Other current assets | 266.0 | 242.9 | |||
| Total current assets | 3,666.9 | 3,599.5 | |||
| Property and equipment, net | 169.6 | 169.0 | |||
| Goodwill and Intangible assets, net | 3,314.6 | 2,990.1 | |||
| Other non-current assets | 308.6 | 271.2 | |||
| Total Assets | € 7,459.8 | € 7,029.8 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||
| Accounts payable | 139.3 | 149.3 | |||
| Contract liabilities | 785.3 | 876.4 | |||
| Short-term debt | 350.0 | 0.0 | |||
| Other current liabilities | 443.4 | 501.7 | |||
| Total current liabilities | 1,718.0 | 1,527.4 | |||
| Long-term debt | 650.0 | 1,000.0 | |||
| Other non-current obligations | 621.4 | 506.3 | |||
| Total long-term liabilities | 1,271.4 | 1,506.3 | |||
| Non-controlling interests | 58.4 | 1.9 | |||
| Parent shareholders' equity | 4,412.0 | 3,994.2 | |||
| Total Liabilities and Shareholders' equity | € 7,459.8 | € 7,029.8 | |||
The Group has initially applied IFRS 15 at 1 January 2018.
Under the transition method chosen, comparative information is not restated.
IFRS 15
DASSAULT SYSTEMES
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (IFRS)
(unaudited; in millions of Euros)
| In millions of Euros | Three months ended | Nine months ended | |||||||||||
|
September 30,
|
September 30,
|
Change |
September 30,
|
September 30,
|
Change | ||||||||
| Net Income attributable to equity holders of the parent | 112.9 | 106.5 | 6.4 | 378.4 | 314.5 | 63.9 | |||||||
| Non-controlling interest |
(2.7) |
(0.3) |
(2.4) |
(3.1) |
1.0 |
(4.1) |
|||||||
| Net Income | 110.2 | 106.2 | 4.0 | 375.3 | 315.5 | 59.8 | |||||||
| Depreciation of property & equipment | 14.3 | 13.9 | 0.4 | 42.5 | 36.8 | 5.7 | |||||||
| Amortization of intangible assets | 45.9 | 40.9 | 5.0 | 132.9 | 125.5 | 7.4 | |||||||
| Other non cash P&L items | 12.7 | 27.1 | (14.4) | 45.8 | 37.5 | 8.3 | |||||||
| Changes in working capital | (82.0) | (108.7) | 26.7 | 150.1 | 156.5 | (6.4) | |||||||
| Net Cash provided by operating activities | € 101.1 | € 79.4 | € 21.7 | € 746.6 | € 671.8 | € 74.8 | |||||||
| Additions to property, equipment and intangibles | (16.9) | (17.7) | 0.8 | (48.2) | (63.5) | 15.3 | |||||||
| Payments for acquisition of businesses, net of cash acquired | (195.7) | (2.8) | (192.9) | (247.3) | (10.8) | (236.5) | |||||||
| Sale (purchase) of short term investments, net | - | (0.1) | 0.1 | 0.7 | 3.6 | (2.9) | |||||||
| Investments, loans and others | 0.2 | 0.8 | (0.6) | (1.3) | 7.2 | (8.5) | |||||||
| Net Cash provided by (used in) investing activities | (€ 212.4) | (€ 19.8) | (€ 192.6) | (€ 296.1) | (€ 63.5) | (€ 232.6) | |||||||
| Acquisition of non-controlling interests | (75.3) | (23.4) | (51.9) | (101.5) | (37.5) | (64.0) | |||||||
| Repayment of short term and long term debt | (14.9) | - | (14.9) | (14.9) | - | (14.9) | |||||||
| (Purchase) Sale of treasury stock | (111.6) | (19.2) | (92.4) | (113.9) | (64.0) | (49.9) | |||||||
| Proceeds from exercise of stock-options | 15.5 | 12.0 | 3.5 | 59.2 | 33.8 | 25.4 | |||||||
| Cash dividend paid | - | - | - | (38.0) | (51.3) | 13.3 | |||||||
| Net Cash provided by (used in) financing activities | (€ 186.3) | (€ 30.6) | (€ 155.7) | (€ 209.1) | (€ 119.0) | (€ 90.1) | |||||||
| Effect of exchange rate changes on
cash and cash equivalents |
0.2 | (56.3) | 56.5 | 45.0 | (184.1) | 229.1 | |||||||
| Increase (decrease) in cash and cash equivalents | (€ 297.4) | (€ 27.3) | (€ 270.1) | € 286.4 | € 305.2 | (€ 18.8) | |||||||
| Cash and cash equivalents at beginning of period | € 3,043.2 | € 2,769.2 | € 2,459.4 | € 2,436.7 | |||||||||
| Cash and cash equivalents at end of period | € 2,745.8 | € 2,741.9 | € 2,745.8 | € 2,741.9 | |||||||||
The Group has initially applied IFRS 15 at 1 January 2018.
Under the transition method chosen, comparative information is not restated.
IFRS 15
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, 2017 filed with the AMF on March 21, 2018. 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 September 30, | ||||||
|
2018
|
Adjustment
|
2018
|
|||||
| Total Revenue IFRS15 | € 804.5 | € 4.8 | € 809.2 | ||||
| Total Revenue IFRS15 breakdown by activity | |||||||
| Software revenue | 711.2 | 4.3 | 715.5 | ||||
| Licenses and other software revenue | 188.1 | 188.1 | |||||
| Subscription and Support revenue | 523.2 | 4.3 | 527.5 | ||||
| Recurring portion of Software revenue | 74% | 74% | |||||
| Services revenue | 93.2 | 0.5 | 93.7 | ||||
| Total Software Revenue IFRS15 breakdown by product line | |||||||
| CATIA software revenue | 240.2 | 1.2 | 241.4 | ||||
| ENOVIA software revenue | 80.6 | 80.6 | |||||
| SOLIDWORKS software revenue | 177.5 | 177.5 | |||||
| Other software revenue | 212.9 | 3.0 | 215.9 | ||||
| Total Revenue IFRS15 breakdown by geography | |||||||
| Americas | 241.0 | 2.9 | 243.9 | ||||
| Europe | 333.3 | 1.6 | 334.9 | ||||
| Asia | 230.2 | 0.3 | 230.5 | ||||
| Total Operating Expenses | (€ 652.6) | € 77.5 | (€ 575.1) | ||||
| Share-based compensation expense | (31.5) | 31.5 | - | ||||
| Amortization of acquired intangibles | (43.8) | 43.8 | - | ||||
| Other operating income and expense, net | (2.2) | 2.2 | - | ||||
| Operating Income | € 151.9 | € 82.3 | € 234.2 | ||||
| Operating Margin | 18.9% | 28.9% | |||||
| Financial revenue & other, net | 3.5 | (1.3) | 2.2 | ||||
| Income tax expense | (45.1) | (23.7) | (68.9) | ||||
| Non-controlling interest | 2.7 | (1.4) | 1.3 | ||||
| Net Income attributable to shareholders | € 112.9 | € 55.8 | € 168.7 | ||||
| Diluted Net Income Per Share (3) | € 0.43 | € 0.22 | € 0.65 | ||||
(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 for net income and diluted net income per share, certain one-time effects and the income tax effect of the non-IFRS adjustments.
| Three months ended September 30, | |||||||
| In millions of Euros | 2018 IFRS | Adjustment |
2018
|
||||
| Cost of revenue | (126.2) | 1.3 | (124.9) | ||||
| Research and development | (153.8) | 12.0 | (141.8) | ||||
| Marketing and sales | (256.5) | 8.4 | (248.1) | ||||
| General and administrative | (70.1) | 9.7 | (60.3) | ||||
| Total share-based compensation expense | € 31.5 | ||||||
(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 260.8 million diluted shares for Q3 2018.
IFRS 15
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, 2017 filed with the AMF on March 21, 2018. 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 | Nine months ended September 30, | ||||||
|
2018
|
Adjustment
|
2018
|
|||||
| Total Revenue IFRS15 | € 2,450.9 | € 9.6 | € 2,460.5 | ||||
| Total Revenue IFRS15 breakdown by activity | |||||||
| Software revenue | 2,186.4 | 9.1 | 2,195.6 | ||||
| Licenses and other software revenue | 584.7 | 584.7 | |||||
| Subscription and Support revenue | 1,601.8 | 9.1 | 1,610.9 | ||||
| Recurring portion of Software revenue | 73% | 73% | |||||
| Services revenue | 264.4 | 0.5 | 264.9 | ||||
| Total Software Revenue IFRS15 breakdown by product line | |||||||
| CATIA software revenue | 740.8 | 1.7 | 742.4 | ||||
| ENOVIA software revenue | 242.6 | 242.6 | |||||
| SOLIDWORKS software revenue | 533.2 | 533.2 | |||||
| Other software revenue | 669.8 | 7.5 | 677.3 | ||||
| Total Revenue IFRS15 breakdown by geography | |||||||
| Americas | 716.2 | 5.7 | 721.9 | ||||
| Europe | 1,041.5 | 2.1 | 1,043.6 | ||||
| Asia | 693.2 | 1.8 | 695.0 | ||||
| Total Operating Expenses | (€ 1,951.6) | 227.0 | (€ 1,724.5) | ||||
| Share-based compensation expense | (91.6) | 91.6 | |||||
| Amortization of acquired intangibles | (126.3) | 126.3 | |||||
| Other operating income and expense, net | (9.1) | 9.1 | |||||
| Operating Income | € 499.3 | 236.7 | € 736.0 | ||||
| Operating Margin | 20.4% | 29.9% | |||||
| Financial revenue & other, net | 12.6 | (0.2) | 12.4 | ||||
| Income tax expense | (136.6) | (77.2) | (213.8) | ||||
| Non-controlling interest | 3.1 | (1.4) | 1.7 | ||||
| Net Income attributable to shareholders | € 378.4 | 157.9 | € 536.3 | ||||
| Diluted Net Income Per Share (3) | € 1.45 | 0.61 | € 2.06 | ||||
(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 for net income and diluted net income per share, certain one-time effects and the income tax effect of the non-IFRS adjustments.
| In millions of Euros | Nine months ended September 30, | ||||||
| 2018 IFRS | Adjustment | 2018 Non-IFRS | |||||
| Cost of revenue | (366.4) | 3.4 | (363.0) | ||||
| Research and development | (467.8) | 35.1 | (432.7) | ||||
| Marketing and sales | (772.3) | 22.3 | (750.0) | ||||
| General and administrative | (209.6) | 30.9 | (178.8) | ||||
| Total share-based compensation expense | € 91.6 | ||||||
(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 260.1 million diluted shares for YTD 2018.
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Dassault Systèmes
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Dassault Systèmes
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Arnaud Malherbe
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or
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Jamie Ricketts
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Arnaud de Cheffontaines
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