Dassault Systèmes Reports Strong Third Quarter Operational
Performance, Confirms its 2020 non-IFRS EPS Objective
Dassault Systèmes Reports Strong Third
Quarter Operational Performance, Confirms its 2020
non-IFRS EPS Objective
VÉLIZY-VILLACOUBLAY, France — October
22, 2020 — Dassault Systèmes (Euronext Paris: #13065,
DSY.PA) announces IFRS unaudited financial results for the third
quarter and nine months ended September 30, 2020. The Group’s Board
of Directors reviewed these results on October 21, 2020. This press
release also includes financial information on a non-IFRS basis and
reconciliations with IFRS figures in the Appendix to this
communication.
Highlights and Financial
Summary(Unaudited, revenue growth in constant
currencies)
- On a non-IFRS basis: Q3 EPS of €0.80 at high end and
Operating Margin of 28.2% above target
- Non-IFRS organic recurring revenue up 4% in Q3 and
YTD
- Mainstream Innovation non-IFRS software revenue up 9%
in Q3
- 3DEXPERIENCE non-IFRS software revenue up 6% in
Q3
- Medidata delivers double-digit non-IFRS revenue growth
on a comparable basis in Q3 and YTD
- YTD cash flow from operations at €1 billion, stable
with year-ago quarter
- Confirming 2020 non-IFRS EPS of €3.70 to €3.75, up 3%
to 5% in constant currencies
In millions of Euros, except per share data and percentages |
|
IFRS |
|
IFRS |
|
Q3 2020 |
Q3 2019 |
Change |
Change in constant currencies |
|
YTD 2020 |
YTD 2019 |
Change |
Change in constant currencies |
Total Revenue |
|
1,029.6 |
914.8 |
13% |
17% |
|
3,233.0 |
2,835.1 |
14% |
14% |
Software Revenue |
|
934.3 |
798.5 |
17% |
21% |
|
2,907.3 |
2,501.2 |
16% |
17% |
Operating Margin |
|
12.1% |
21.0% |
(8.9)pts |
|
|
12.0% |
20.8% |
(8.9)pts |
|
EPS |
|
0.35 |
0.53 |
(34)% |
|
|
1.09 |
1.66 |
(34)% |
|
In millions of Euros, except per share data and percentages |
|
Non-IFRS |
|
Non-IFRS |
|
Q3 2020 |
Q3 2019 |
Change |
Change in constant currencies |
|
YTD 2020 |
YTD 2019 |
Change |
Change in constant currencies |
Total Revenue |
|
1,030.2 |
914.0 |
13% |
17% |
|
3,245.2 |
2,843.4 |
14% |
15% |
Software Revenue |
|
934.9 |
797.5 |
17% |
22% |
|
2,918.3 |
2,508.0 |
16% |
17% |
Operating Margin |
|
28.2% |
30.3% |
(2.1)pts |
|
|
28.1% |
31.3% |
(3.2)pts |
|
EPS |
|
0.80 |
0.78 |
3% |
8% |
|
2.55 |
2.46 |
4% |
4% |
Bernard Charlès, Dassault Systèmes’ Vice
Chairman and Chief Executive Officer commented, “Recapping
our progress during this quarter by our three sectors, we had a
strong growth dynamic in Life Sciences & Healthcare, up
double-digits on a comparable basis. Infrastructure & Cities
grew 6% led by our activities in Asia. Within the Manufacturing
Sector, we are seeing stable to growing year on year software
performance in Industrial Equipment, High-Tech, Home &
Lifestyle and Consumer Packaged Goods & Retail. Thanks to our
broad market reach within Transportation & Mobility and
Aerospace & Defense, we saw continued strong investments by
pure-play Electric Vehicle companies and a good dynamic in
Space.
“Our financial performance, client engagements
and product launches demonstrate that we are enabling a broader
axis of growth for the coming years.
“We are benefiting from our competitive
strength, with our platform-based solutions, increasing our
relevance as a strategic partner to the Life Sciences and
Healthcare industry. Medidata, through its offers, is helping the
industry re-imagine the future of clinical trials. Earlier this
month, myMedidata LIVE became available to give researchers and
patients a way to engage in remote site visits within the platform
of site and patient-facing technologies they are already using on
the study. On the customer front, we are pleased to share that
Johnson & Johnson has extended its use of the Medidata platform
for clinical trial management for the next five years.
“In the Mainstream Innovation market served by
SOLIDWORKS, we are extending the reach of the
3DEXPERIENCE platform with the 3DEXPERIENCE WORKS
family of solutions. This portfolio represents the most
comprehensive cloud-based portfolio offering on this market.
“In Manufacturing Industries, we see a shift in
focus from reducing the total cost of operation through software
solutions to designing the next generation portfolio for a
sustainable future. To imagine, develop, produce and operate
a carbon-free aircraft 15 years from now, we must start designing
it today. Data intelligence is another core pillar for this sector,
in much the same way that part procurement was in the 20th century.
In the Infrastructure and Cities sector as well, innovation is
driven by the sustainability imperative. As industries increasingly
interact, experience platforms are indispensable to reshape
ecosystems.”
Third Quarter Financial Summary
(Unaudited)
In millions of Euros, except per share data and percentages |
|
IFRS |
|
Non-IFRS |
|
Q3 2020 |
Q3 2019 |
Change |
Change in constant currencies |
|
Q3 2020 |
Q3 2019 |
Change |
Change in constant currencies |
Total Revenue |
|
1,029.6 |
914.8 |
13% |
17% |
|
1,030.2 |
914.0 |
13% |
17% |
Software Revenue |
|
934.3 |
798.5 |
17% |
21% |
|
934.9 |
797.5 |
17% |
22% |
Services Revenue |
|
95.3 |
116.3 |
(18)% |
(15)% |
|
95.4 |
116.5 |
(18)% |
(15)% |
Operating Margin |
|
12.1% |
21.0% |
(8.9)pts |
|
|
28.2% |
30.3% |
(2.1)pts |
|
EPS |
|
0.35 |
0.53 |
(34)% |
|
|
0.80 |
0.78 |
3% |
8% |
Total Software Revenue in millions of Euros, except
percentages |
|
IFRS |
|
Non-IFRS |
|
Q3 2020 |
Q3 2019 |
Change |
Change in constant currencies |
|
Q3 2020 |
Q3 2019 |
Change |
Change in constant currencies |
Americas |
|
357.9 |
260.6 |
37% |
45% |
|
358.3 |
259.9 |
38% |
46% |
Europe |
|
335.3 |
309.8 |
8% |
10% |
|
335.3 |
309.5 |
8% |
10% |
Asia |
|
241.2 |
228.1 |
6% |
10% |
|
241.2 |
228.1 |
6% |
10% |
Third Quarter 2020 versus 2019 Financial
Comparisons
Q3 Revenue Review
•
Total revenue increased 17% (IFRS and non-IFRS), reflecting the
inclusion of Medidata Solutions, Inc. following the completion of
its acquisition on October 28, 2019. On an organic basis, non-IFRS
total revenue decreased 3%, improving on a sequential basis from
(8)% in the second quarter 2020. (All growth rates are at constant
currencies.)
•
Software revenue grew 21% (IFRS) and 22% (non-IFRS). Non-IFRS
recurring software revenue, representing 82% of non-IFRS software
revenue, increased 32% driven by growth in Life Sciences and in
Mainstream Innovation. While continuing to reflect the impact of
Covid-19 on investments, new licensing activity demonstrated a
marked recovery, leading to licenses and other software revenue
decrease, on a reported and organic basis of 11% (IFRS and
non-IFRS) in the third quarter, improving from a decrease of 32%
(IFRS and non-IFRS) year-on-year in the second quarter. On an
organic basis, non-IFRS recurring software increased 4%. (All
growth rates are at constant currencies.)
•
By industry sector, while Manufacturing Industries non-IFRS
software revenue decreased 2% overall, the Group saw growth in
High-Tech, Consumer Packaged Goods & Retail and Home &
Lifestyle and stable year-over-year software revenue results for
Industrial Equipment. Life Sciences & Healthcare non-IFRS
software revenue increased significantly with the addition of
Medidata and represented 22% of non-IFRS software revenue in the
quarter. Infrastructure & Cities non-IFRS software revenue
increased 6% and represented 10% of total non-IFRS software
revenue. (All growth rates at constant currencies.)
•
3DEXPERIENCE non-IFRS software revenue increased
6% in the third quarter and represented 28% (25% in Q3 2019) of
related non-IFRS software revenue. The largest transactions in the
quarter were from customers in High Tech, Aerospace & Defense,
Transportation & Mobility, Industrial Equipment, and Marine
& Offshore. (All growth rates in constant currencies.)
•
On a regional basis, non-IFRS software revenue increased 46% in the
Americas, led by the addition of Medidata. Non-IFRS software
revenue increased 10% in Asia led by China, Korea and Asia Pacific
South. In Europe, non-IFRS software revenue also increased 10% with
strong growth in Western Europe as well as Northern Europe and
Russia. (All growth rates at constant currencies.)
•
Services revenue decreased 15% (IFRS and non-IFRS) in the third
quarter. Services revenue performance in the third quarter was
negatively affected by changes in customers’ plans related to new
engagements and project timing extensions. (All growth rates are at
constant
currencies.)
Q3 Operating Review
•
On an IFRS basis, operating income decreased 35%, principally
reflecting the impact of acquired intangibles amortization and
share-based compensation expenses, including social charges, both
related to the addition of Medidata. On a non-IFRS basis, operating
income of €290.9 million increased 5% as reported and 10% at
constant rate. The non-IFRS operating margin of 28.2% came in above
the high end of the Group’s guidance range of 26.0% to 26.5% on a
strong operational management. Currency headwinds had a negative 40
basis points impact on the non-IFRS operating margin in the third
quarter.
•
IFRS diluted net income per share was €0.35, decreasing 34%. On a
non-IFRS basis, diluted net income per share of €0.80 was on the
high end of the Group’s guidance range of 75 to 80 cents.
First Nine Months 2020 versus 2019
Financial Comparisons(Unaudited)
In millions of Euros, except per share data and percentages |
|
IFRS |
|
Non-IFRS |
|
YTD 2020 |
YTD 2019 |
Change |
Change in constant currencies |
|
YTD 2020 |
YTD 2019 |
Change |
Change in constant currencies |
Total Revenue |
|
3,233.0 |
2,835.1 |
14% |
14% |
|
3,245.2 |
2,843.4 |
14% |
15% |
Software Revenue |
|
2,907.3 |
2,501.2 |
16% |
17% |
|
2,918.3 |
2,508.0 |
16% |
17% |
Services Revenue |
|
325.7 |
333.9 |
(2)% |
(2)% |
|
326.8 |
335.3 |
(3)% |
(2)% |
Operating Margin |
|
12.0% |
20.8% |
(8.9)pts |
|
|
28.1% |
31.3% |
(3.2)pts |
|
EPS |
|
1.09 |
1.66 |
(34)% |
|
|
2.55 |
2.46 |
4% |
4% |
Total Software Revenue in millions of Euros, except
percentages |
|
IFRS |
|
Non-IFRS |
|
YTD 2020 |
YTD 2019 |
Change |
Change in constant currencies |
|
YTD 2020 |
YTD 2019 |
Change |
Change in constant currencies |
Americas |
|
1,116.0 |
775.0 |
44% |
44% |
|
1,126.4 |
780.5 |
44% |
45% |
Europe |
|
1,045.0 |
1,022.2 |
2% |
3% |
|
1,045.4 |
1,023.5 |
2% |
3% |
Asia |
|
746.2 |
704.0 |
6% |
6% |
|
746.6 |
704.0 |
6% |
6% |
9 Months Revenue Review
•
IFRS total revenue increased 14%. On a non-IFRS basis, total
revenue increased 15%. Its evolution is explained by the inclusion
of Medidata offset in part by lower revenues of 4% on an organic
basis due to the impact of the global pandemic. (All growth rates
at constant currencies.)
•
IFRS software revenue increased 17%. Non-IFRS software revenue also
increased 17%, reflecting non-IFRS recurring software revenue
growth of 31% with the addition of Medidata and organic growth of
4%, while licenses and other software revenue decreased 22% (IFRS
and non-IFRS). Non-IFRS recurring software revenue represented 83%
of non-IFRS software revenue and totaled €2.41 billion. (All growth
rates at constant currencies.)
•
Services revenue decreased 2% (IFRS and non-IFRS), reflecting the
addition of services from Medidata offset by a non-IFRS organic
decrease of 17% related to COVID-19 disruptions to new business and
to ongoing service engagements. (All growth rates in constant
currencies.)
·The Americas represented 39% (31% in YTD 2019)
of total non-IFRS software revenue, Europe 36% (41% in YTD 2019)
and Asia 26% (28% in YTD 2019). In the Americas, non-IFRS software
revenue increased 45% led by North America. In Europe, non-IFRS
software revenue increased 3% with the largest geos, Central
Europe, Western Europe and Northern Europe, demonstrating
resiliency. In Asia, non-IFRS software revenue increased 6% led by
China and Asia Pacific South.
9 Months Operating Review
•
IFRS operating income totaled €386.4 million. On a non-IFRS basis,
operating income increased 2% to €911.2 million. The non-IFRS
operating margin was 28.1% compared to 31.3% in the year-ago
period, and principally reflected acquisition dilution of about 170
basis points and an estimated 150 basis points impact of the
COVID-19 pandemic on non-IFRS new licenses and non-IFRS services
activities.
•
The IFRS effective tax rate was 23.7% (non-IFRS 25.1%) for the
first nine months of 2020, compared to 28.6% (non-IFRS 28.4%) in
the year-ago period. The principal drivers of the decrease in the
effective tax rate include a favorable evolution in the geographic
mix of taxable income and rates.
•
IFRS diluted net income per share was €1.09. On a non-IFRS basis,
diluted net income per share increased 4% to €2.55.
COO & CFO Commentary
(revenue growth figures in constant currency)
Pascal Daloz, Dassault Systèmes’ Chief
Operating Officer, & Chief Financial Officer,
commented: “Thanks to the resiliency of our recurring
software revenue in combination with our savings plan, we are well
positioned to achieve our objective of growing non-IFRS earnings
per share for 2020. We are therefore reaffirming our 2020 non-IFRS
earnings per share objective range, at €3.70 to €3.75, representing
growth of approximately 3% to 5% in constant currency.
“The third quarter revealed several important
factors from a top-line perspective. First, we saw an important
recovery in our Mainstream Innovation market where SOLIDWORKS is
the world leader, with non-IFRS software revenue up 10%. While
these transaction sizes are small in amount, the global coverage of
the market by SOLIDWORKS resellers makes them significant taken
together. Secondly, 3DEXPERIENCE platform non-IFRS
software revenue grew 6% and represented 28% of the related
non-IFRS software revenue in the third quarter, resuming growth.
Third, in Life Sciences, Medidata delivered a third quarter with
double-digit non-IFRS revenue growth. Importantly, it had a record
booking performance resulting in accelerating backlog growth and
increasing its visibility for 2021. Finally, while the global
pandemic and second waves are extending the expected recovery
timelines, the expansion of our savings program has enabled us to
absorb these variations.
“Demonstrating strong operational
management globally, our third quarter non-IFRS operating margin of
28.2% came in 190 basis points above the mid-point of our guidance,
more than compensating lower services activity as well as currency
headwinds. In addition, our organic non-IFRS operating margin was
stable year-over-year. Non-IFRS earnings per share of 80 cents came
in at the high end of our guidance, delivering year over year
growth of 3% or 8% excluding currency effects.”
Financial Objectives Framework for the
Fourth Quarter and 2020 Full Year
The Group has set the following framework as the
basis for its fourth quarter and full year financial objectives.
Key framework assumptions and targeted growth rates, initially
outlined in April 2020, are confirmed or refined as follows:
- A significant deceleration in global GDP for the full year 2020
compared to 2019, and restrictions in a number of industries based
upon current governmental plans in the Americas, Europe and Asia,
leading to non-IFRS licenses and other software revenue to decrease
year over year by approximately -20% to -19% in constant currencies
for FY 2020 (July perspectives of -18% to -16%), anticipating in
the fourth quarter a trend equivalent to the third quarter’s;
- Non-IFRS recurring software revenue to maintain a strong
resilience, while reflecting lower new licenses activity and some
increased attrition, leading to growth of recurring revenue in the
range of 26% to 27% (unchanged compared to July perspectives) in
constant currencies for FY 2020;
- Services non-IFRS revenue should be lower in 2020 by -9% and
-8% (July perspectives of -2% to +1%), to reflect Services
volatility;
- We reflect a lower US dollar in our fourth quarter
perspectives, from 1.15 to 1.18, hence a negative impact of about
€15 million on our non-IFRS revenue;
- Cost savings targeting to achieve a non-IFRS operating margin
in the range of 29.8% to 30.0% for FY 2020 (from July 29.3% to
29.4%);
- Non-IFRS effective tax rate of about 25.2% for FY 2020.
Dassault
Systèmes’ full year 2020 financial objectives presented below are
given on a non-IFRS basis and reflect the principal 2020 currency
exchange rate assumptions below for the US dollar and Japanese yen
as well as the potential impact from additional non-Euro
currencies:
|
|
Q4 2020 Framework |
|
FY 2020 Framework |
Total non-IFRS Revenue |
|
€1.19 to €1.22 billion |
|
€4.44 to €4.46 billion |
Growth in Constant
Currencies |
|
+2% to +4% |
|
+11% to
+12% |
Non-IFRS operating
Margin |
|
34.6% to 35.2% |
|
29.8% to
30.0% |
Non-IFRS EPS |
|
€1.15 to €1.20 |
|
€3.70 to
€3.75 |
Non-IFRS EPS
Growth |
|
-4% to 0% |
|
+1% to
+3% |
US dollar |
|
$1.18 per Euro |
|
$1.14 per
Euro |
Japanese yen (before
hedging) |
|
JPY 125.0 per Euro |
|
JPY 122.1
per Euro |
These framework objectives are prepared and
communicated only on a non-IFRS basis and are subject to the
cautionary statement set forth below.
The 2020 non-IFRS financial objectives framework
set forth above do not take into account the following accounting
elements below and are estimated based upon the 2020 principal
currency exchange rates above: contract liabilities write-downs
estimated at approximately €13 million; share-based compensation
expenses, including related social charges, estimated at
approximately €210 million; and amortization of acquired
intangibles and of tangibles reevaluation, estimated at
approximately €396 million, largely impacted by the
acquisition of Medidata; and lease incentives of acquired companies
at approximately €3 million. The above objectives also do not
include any impact from other operating income and expenses, net
principally comprised of acquisition, integration and restructuring
expenses, and impairment of goodwill and acquired intangible
assets; from one-time items included in financial revenue; from
one-time tax effects; and from the income tax effects of these
non-IFRS adjustments. Finally, these estimates do not include any
new stock option or share grants, or any new acquisitions or
restructuring completed after September 30, 2020.
Cash Flow and Balance Sheet
Information
For the 2020 nine-month period, the Group’s
principal sources of liquidity were cash from operations
aggregating €1.0 billion as well as cash for stock options
exercised of €76.0 million. During the 2020 nine-month period, cash
from operations was used principally to distribute cash dividends
of €182.5 million; capital expenditures, net of €104.7 million;
repurchase of shares of €103.7 million related to its stock options
and share grant programs and payment for lease obligations of €69.4
million.
Dassault Systèmes’ net financial position
totaled €(2.1) billion at September 30, 2020, reflecting cash, cash
equivalents and short-term investments of €2.5 billion and debt
related to borrowings of €4.6 billion, compared to a net financial
position totaling €(2.7) billion at December 31,
2019.
Summary of Recent Business, Technology and Customer
Announcements
On October 14, 2020,
Medidata announced the availability of myMedidata LIVE, a
new feature on the myMedidata patient platform. myMedidata
LIVE is a web-based, live video conferencing capability connecting
patients virtually with their clinical trial study staff. Built on
the industry’s leading Rave EDC (electronic data capture) platform
already in use at more clinical research sites globally than any
other system, myMedidata LIVE gives researchers and patients a way
to engage in remote site visits within the platform of site and
patient-facing technologies they are already using on the
study.
On September 30, 2020,
Dassault Systèmes announced that the company-wide rollout
of the 3DEXPERIENCE platform at Ericsson, one of the world’s
leading providers of information and communication technology, had
been started. The start of the rollout marks the next step
in Dassault Systèmes’ long-term relationship with Ericsson, which
enables Ericsson’s digital transformation in its product management
and research and development workflows.
On September 29, 2020,
Dassault Systèmes unveiled 3DEXPERIENCE Edu, its new
ambition to help students and professionals thrive in the workplace
with in-demand industry skills for sustainable innovation.
With 3DEXPERIENCE Edu, Dassault Systèmes
will drive its key role in building the workforce of the future by
opening up new possibilities on the 3DEXPERIENCE
platform for lifelong learning and for connecting academic
institutions with industry to foster employability.
On September 23, 2020,
Dassault Systèmes announced it had joined the Global
Enabling Sustainability Initiative (GESI), a global organization
focused on enabling digital sustainability. Becoming a
member of GeSI means that Dassault Systèmes is adding its name to a
growing number of major information, communication, and technology
(ICT) companies and organizations from around the world that are
seeking to enable social and environmental sustainability through
technology.
On September 22, 2020, Dassault Systèmes
announced that GEA, one of the world’s largest technology suppliers
for food processing and a wide range of other industries, used
SIMULIA applications powered by the 3DEXPERIENCE platform
to simulate airflow at its Oelde, Germany employee cafeteria, which
has been closed since March 2020 due to the COVID-19 pandemic, and
to gain insights on how to safely reopen it for 1,900
employees.
Today’s Webcast and Conference Call
Information
Today, Thursday, October 22, 2020, Dassault
Systèmes will host a webcasted presentation at 9:00 London Time/
10:00 AM Paris time and will then host a conference call at 9:00 AM
New York time / 3:00 PM Paris time / 2:00 PM London time. The
webcasted presentation and conference call will be available online
by accessing www.3ds.com/investors/ .
Additional investor information is available at
www.3ds.com/investors/ or by calling Dassault Systèmes’ Investor
Relations at +33.1.61.62.69.24.
Key Investor Relations
Events
Capital Market Day: November 17, 2020Fourth
Quarter 2020 Earnings Release: February 4, 2021
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 Group’s non-IFRS
financial performance objectives or framework, 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 Group’s current framework for 2020 takes
into consideration, among other things, an uncertain global
economic environment. In light of the uncertainties regarding
economic, business, social, health and geopolitical conditions at
the global level, Dassault Systèmes’ revenue, net earnings and cash
flows may grow more slowly, whether on an annual or quarterly
basis, mainly due to the following factors:
- the deployment of Dassault Systèmes’ solutions may represent a
large portion of a customer’s investments in software technology.
Decisions to make such an investment are impacted by the economic
environment in which the customers operate. Uncertain global
geopolitical, economic and health conditions and the lack of
visibility or the lack of financial resources may cause some
customers, e.g. within automotive, aerospace or natural resources
industries, to reduce, postpone or terminate their investments, or
to reduce or not renew ongoing paid maintenance for their installed
base, which impact larger customers’ revenue with their respective
sub-contractors; the sales cycle of Dassault Systèmes’ products –
already relatively long due to the strategic nature of such
investments for customers – could further lengthen; and
- the political, economic and monetary situation in certain
geographic regions where Dassault Systèmes operates could become
more volatile and, for example, result in stricter export
compliance rules or the modification of current tariff
regimes;
- health conditions in some geographic areas where Dassault
Systèmes operates will impact the economic situation of those
regions. Specifically, it is not possible to predict the impact,
length and scope of damages originating from the COVID-19 pandemic
as of issuance date of this document. Health conditions, including
the COVID-19 pandemic, may present risks for health and ability to
travel for Dassault Systèmes employees; and
- continued pressure or volatility on raw materials and energy
prices could also slow down Dassault Systèmes’ diversification
efforts in new industries.
Dassault
Systèmes makes every effort to take into consideration this
uncertain macroeconomic outlook. Dassault Systèmes’ business
results, however, may not develop as anticipated. Furthermore, due
to factors affecting sales of Dassault Systèmes’ products and
services, there may be a substantial time lag between an
improvement in global economic and business conditions and an
upswing in the Group’s business results.
The economic context (as notably caused by the
COVID-19 pandemic crisis) may also adversely impact the financial
situation or financing capabilities of Dassault Systèmes’ existing
and potential customers, commercial and technology partners, some
of whom may be forced to temporarily close sites or cease
operations due to cash flow and profitability issues. Dassault
Systèmes’ ability to collect outstanding receivables may be
affected. In addition, the economic environment could generate
increased price pressure, as customers seek lower prices from
various competitors, which could negatively impact Dassault
Systèmes’ revenue, financial performance and market position.
The Group’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
2019 Document d'enregistrement universel (Annual Report) filed with
the AMF (French Financial Markets Authority) on March 19, 2020,
available on the Group’s website www.3ds.com.
In preparing such forward-looking statements,
the Group has in particular assumed an average US dollar to euro
exchange rate of US$1.14 per €1.00 as well as an average Japanese
yen to euro exchange rate of JPY122.1 to €1.00 before hedging for
the full year 2020. However, currency values fluctuate, and the
Group’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. This information is not based on any
comprehensive set of accounting rules or principles and should not
be considered as a substitute for IFRS measurements. In addition,
the Group’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 Group’s 2019 Document
d'enregistrement universel (Annual Report) filed with the AMF on
March 19, 2020.
In the tables accompanying this press release
the Group 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 and of tangibles reevaluation, certain other
operating income and expense, net, including impairment of goodwill
and acquired intangibles, the effect of adjusting lease incentives
of acquired companies, 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.
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About Dassault Systèmes
Dassault Systèmes, the
3DEXPERIENCE Company, is a catalyst for human
progress. We provide business and people with collaborative virtual
environments to imagine sustainable innovations. By creating
‘virtual experience twins’ of the real world with our
3DEXPERIENCE platform and applications, our
customers push the boundaries of innovation, learning and
production. Dassault Systèmes’ 20,000 employees are bringing value
to more than 270,000 customers of all sizes, in all industries, in
more than 140 countries. For more information, visit
www.3ds.com
©2020 Dassault Systèmes. All rights reserved.
3DEXPERIENCE, the Compass icon, the 3DS logo,
CATIA, BIOVIA, GEOVIA, SOLIDWORKS, 3DVIA, ENOVIA, EXALEAD,
NETVIBES, MEDIDATA, CENTRIC PLM, 3DEXCITE, SIMULIA, DELMIA, and
IFWE are commercial trademarks or registered trademarks of Dassault
Systèmes, a French “société européenne” (Versailles Commercial
Register # B 322 306 440), or its subsidiaries in the United States
and/or other countries. All other trademarks are owned by their
respective owners. Use of any Dassault Systèmes or its subsidiaries
trademarks is subject to their express written approval.
Dassault Systèmes Investor Relations’
Contacts
Corporate |
François-José BordonadoBéatrix Martinez |
investors@3ds.com |
+33.1.61.62.69.24 |
|
|
|
|
United States and Canada |
Michele Katz |
michele.katz@3ds.com |
|
|
|
|
|
FTI Consulting |
Jamie RickettsArnaud de Cheffontaines |
|
+44.20.3727.1000+33.1.47.03.69.48 |
Dassault Systèmes Press
ContactsCorporate /
France Arnaud
MALHERBE
arnaud.malherbe@3ds.com
+33 (0)1 61 62 87 73North
America
Suzanne
MORAN
suzanne.moran@3ds.com
+1 (781) 810
3774EMEAR
Virginie
BLINDENBERG
virginie.blindenberg@3ds.com
+33 (0) 1 61 62 84
21China
Grace
MU
grace.mu@3ds.com
+86 10 6536 2288India
Santanu
BHATTACHARYA
santanu.bhattacharya@3ds.com
+91 124 457
7111Japan
Yukiko
SATO
yukiko.sato@3ds.com
+81 3 4321
3841Korea
Hyunkyung
CHAE
hyunkyung.chae@3ds.com
+82 2 3271 6653AP
South
Pallavi
MISRA
pallavi.misra@3ds.com
+65 9437 0714
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
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 Group’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
Dassault Systèmes’ Industries develop Solution
Experiences, industry-focused offerings that deliver specific value
to companies and users in a particular industry. We serve eleven
industries structured into three sectors: Manufacturing Industries
(Transportation & Mobility; Aerospace & Defense; Marine
& Offshore; Industrial Equipment; High-Tech; Home &
Lifestyle; Consumer Packaged Goods & Retail and a portion of
Business Services); Life Sciences & Healthcare (Life Sciences);
and Infrastructure & Cities (Energy & Materials;
Construction, Cities and Territories; Business Services).
Information on Product
Lines
Commencing with the first quarter of 2020 and as
previously disclosed, we have introduced a new presentation of our
product lines to reflect our broader ambitions. Our new product
line financial reporting includes: 1) Industrial Innovation
software revenue, comprised of our CATIA, ENOVIA, SIMULIA, DELMIA,
GEOVIA, NETVIBES/EXALEAD, and 3DEXCITE brands; 2) Life Sciences
software revenue, comprised of our MEDIDATA and BIOVIA brands; and
3) Mainstream Innovation software revenue, comprised of our
SOLIDWORKS brand as well as CENTRIC PLM, 3DVIA and our new
3DEXPERIENCE WORKS family.
3DEXPERIENCE Licenses and Software
Contribution
To measure the progressive penetration of
3DEXPERIENCE software, we utilize the following
ratios: a) for Licenses revenue, we calculate 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 Group calculates the percentage
contribution by comparing total 3DEXPERIENCE
software revenue to software revenue for all product lines
except SOLIDWORKS and acquisitions (“related software
revenue”).
DASSAULT
SYSTEMESNON-IFRS FINANCIAL
INFORMATION(unaudited; in millions of Euros, except per
share data, percentages, 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 and of tangible
assets revaluation, lease incentives of acquired companies, other
operating income and expense, net, including the impairment of
goodwill and acquired intangible assets, certain one-time financial
revenue items 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, percentages, headcount
and exchange rates |
Non-IFRS reported |
Three months ended |
Nine months ended |
September 30,2020 |
September 30,2019 |
Change |
Change in constant currencies |
September 30,2020 |
September 30,2019 |
Change |
Change in constant currencies |
Revenue |
€ 1,030.2 |
€ 914.0 |
13% |
17% |
€ 3,245.2 |
€ 2,843.4 |
14% |
15% |
|
|
|
|
|
|
|
|
|
Revenue breakdown by activity |
|
|
|
|
|
|
|
|
Software revenue |
934.9 |
797.5 |
17% |
22% |
2,918.3 |
2,508.0 |
16% |
17% |
Of which licenses and other software revenue |
167.0 |
196.4 |
(15)% |
(11)% |
508.5 |
658.1 |
(23)% |
(22)% |
Of which subscription and support revenue |
767.9 |
601.1 |
28% |
32% |
2,409.8 |
1,849.9 |
30% |
31% |
Services revenue |
95.4 |
116.5 |
(18)% |
(15)% |
326.8 |
335.3 |
(3)% |
(2)% |
|
|
|
|
|
|
|
|
|
Software revenue breakdown by product line |
|
|
|
|
|
|
|
|
Industrial Innovation |
513.9 |
540.5 |
(5)% |
(2)% |
1,664.7 |
1,742.8 |
(4)% |
(4)% |
Of which CATIA |
249.2 |
257.0 |
(3)% |
(1)% |
771.8 |
807.6 |
(4)% |
(4)% |
Of which ENOVIA (1) |
82.2 |
82.2 |
0% |
4% |
246.3 |
264.6 |
(7)% |
(7)% |
Life Sciences (2) |
190.1 |
33.2 |
472% |
498% |
578.9 |
103.0 |
462% |
462% |
Mainstream Innovation |
230.8 |
223.7 |
3% |
9% |
674.8 |
662.3 |
2% |
2% |
Of which SOLIDWORKS |
205.5 |
196.1 |
5% |
10% |
605.5 |
590.3 |
3% |
3% |
|
|
|
|
|
|
|
|
|
Revenue breakdown by geography |
|
|
|
|
|
|
|
|
Americas |
394.4 |
306.1 |
29% |
36% |
1,262.1 |
915.8 |
38% |
38% |
Europe |
380.4 |
360.6 |
5% |
7% |
1,179.8 |
1,164.8 |
1% |
2% |
Asia |
255.4 |
247.3 |
3% |
7% |
803.3 |
762.8 |
5% |
6% |
|
|
|
|
|
|
|
|
|
Operating income |
€ 290.9 |
€ 276.9 |
5% |
|
€ 911.2 |
€ 889.6 |
2% |
|
Operating margin |
28.2% |
30.3% |
|
|
28.1% |
31.3% |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to shareholders |
€ 210.3 |
€ 202.5 |
4% |
|
€ 671.7 |
€ 643.0 |
4% |
|
Diluted net income per share |
€ 0.80 |
€ 0.78 |
3% |
8% |
€ 2.55 |
€ 2.46 |
4% |
4% |
|
|
|
|
|
|
|
|
|
Closing headcount |
21,557 |
18,019 |
20% |
|
21,557 |
18,019 |
20% |
|
|
|
|
|
|
|
|
|
|
Average Rate USD per Euro |
1.17 |
1.11 |
5% |
|
1.13 |
1.12 |
1% |
|
Average Rate JPY per Euro |
124.05 |
119.32 |
4% |
|
120.91 |
122.57 |
(1)% |
|
(1) Excluding ENOVIA Life Sciences Compliance and Quality
Management (Q3 2019: €2.6m; YTD 2019: €9.6m)(2) Including ENOVIA
Life Sciences Compliance and Quality Management (Q3 2019: €2.6m;
YTD 2019: €9.6m)
DASSAULT
SYSTEMESACQUISITIONS AND FOREIGN EXCHANGE
IMPACT(unaudited; in millions of Euros)
In millions of Euros |
Non-IFRS reported |
o/w growth at constant rate and scope |
o/w change of scope impact at current year
rate |
o/w FX impact on previous year figures |
September 30,2020 |
September 30,2019 |
Change |
Revenue QTD |
1,030.2 |
914.0 |
116.3 |
(29.3) |
178.0 |
(32.5) |
Revenue YTD |
3,245.2 |
2,843.4 |
401.8 |
(120.4) |
533.6 |
(11.4) |
DASSAULT
SYSTEMESCONDENSED CONSOLIDATED STATEMENTS OF
INCOME (IFRS)(unaudited; in millions of Euros, except per
share data and percentages)
In millions of Euros, except per share data and percentages |
IFRS reported |
Three months ended |
Nine months ended |
September 30, |
September 30, |
September 30, |
September 30, |
2020 |
2019 |
2020 |
2019 |
Licenses and other software revenue |
167.0 |
196.4 |
508.5 |
658.1 |
Subscription and Support revenue |
767.3 |
602.1 |
2,398.8 |
1,843.1 |
Software revenue |
934.3 |
798.5 |
2,907.3 |
2,501.2 |
Services revenue |
95.3 |
116.3 |
325.7 |
333.9 |
Total Revenue |
€ 1,029.6 |
€ 914.8 |
€ 3,233.0 |
€ 2,835.1 |
Cost of software revenue (1) |
(96.3) |
(42.2) |
(249.1) |
(131.9) |
Cost of services |
(88.7) |
(101.3) |
(316.6) |
(307.6) |
Research and development |
(230.1) |
(170.5) |
(703.7) |
(527.7) |
Marketing and sales |
(294.1) |
(283.8) |
(941.4) |
(875.5) |
General and administrative |
(85.9) |
(69.2) |
(284.3) |
(221.5) |
Amortization of acquired intangible assets and of tangible assets
revaluation |
(92.8) |
(51.1) |
(302.7) |
(152.2) |
Other operating income and expense, net |
(17.0) |
(4.4) |
(48.9) |
(28.4) |
Total Operating Expenses |
(904.9) |
(722.5) |
(2,846.6) |
(2,244.8) |
Operating Income |
€ 124.7 |
€ 192.3 |
€ 386.4 |
€ 590.3 |
Financial income (loss), net |
(5.9) |
1.4 |
(18.9) |
6.7 |
Income before income taxes |
€ 118.8 |
€ 193.7 |
€ 367.4 |
€ 597.0 |
Income tax expense |
(27.7) |
(56.8) |
(87.1) |
(170.8) |
Net Income |
€ 91.0 |
€ 136.9 |
€ 280.3 |
€ 426.2 |
Non-controlling interest |
0.9 |
0.5 |
6.9 |
6.2 |
Net Income attributable to equity holders of the
parent |
€ 91.9 |
€ 137.4 |
€ 287.3 |
€ 432.3 |
Basic net income per share |
0.35 |
0.53 |
1.10 |
1.67 |
Diluted net income per share |
€ 0.35 |
€ 0.53 |
€ 1.09 |
€ 1.66 |
Basic weighted average shares outstanding (in millions) |
261.1 |
260.0 |
260.3 |
259.4 |
Diluted weighted average shares outstanding (in millions) |
263.2 |
261.1 |
263.0 |
260.9 |
(1) Excluding amortization of acquired intangible assets and of
tangible assets revaluation
IFRS reported |
Three months ended September 30, 2020 |
Nine months ended September 30, 2020 |
Change (4) |
Change in constant currencies |
Change (4) |
Change in constant currencies |
Revenue |
13% |
17% |
14% |
14% |
Revenue by activity |
|
|
|
|
Software revenue |
17% |
21% |
16% |
17% |
Services revenue |
(18)% |
(15)% |
(2)% |
(2)% |
Software Revenue by product line |
|
|
|
|
Industrial Innovation |
(5)% |
(2)% |
(5)% |
(4)% |
Of which CATIA |
(3)% |
(1)% |
(5)% |
(4)% |
Of which ENOVIA (2) |
0% |
4% |
(7)% |
(7)% |
Life Sciences (3) |
471% |
497% |
456% |
455% |
Mainstream Innovation |
3% |
8% |
3% |
3% |
Of which SOLIDWORKS |
5% |
10% |
3% |
3% |
Revenue by geography |
|
|
|
|
Americas |
28% |
36% |
38% |
38% |
Europe |
5% |
7% |
1% |
2% |
Asia |
3% |
7% |
5% |
6% |
(2) Excluding ENOVIA Life Sciences Compliance and Quality
Management (Q3 2019: €2.6m; YTD 2019: €9.6m)(3) Including ENOVIA
Life Sciences Compliance and Quality Management (Q3 2019: €2.6m;
YTD 2019: €9.6m)(4) Variation compared to the same period in the
prior year
DASSAULT
SYSTEMESCONDENSED CONSOLIDATED BALANCE SHEETS
(IFRS)(unaudited; in millions of Euros)
In millions of Euros |
IFRS reported |
September 30, |
December 31, |
2020 |
2019 |
ASSETS |
|
|
Cash and cash equivalents |
2,506.1 |
1,944.9 |
Accounts receivable, net |
892.9 |
1,319.2 |
Contract assets |
38.9 |
26.9 |
Other current assets |
294.7 |
378.0 |
Total current assets |
3,732.6 |
3,669.0 |
Property and equipment, net |
886.4 |
899.7 |
Goodwill and Intangible assets, net |
8,337.1 |
8,917.0 |
Other non-current assets |
415.0 |
386.9 |
Total non-current assets |
9,638.5 |
10,203.7 |
Total Assets |
€ 13,371.0 |
€ 13,872.6 |
LIABILITIES AND EQUITY |
|
|
Accounts payable |
144.6 |
220.0 |
Contract liabilities |
1,038.9 |
1,093.5 |
Borrowings, current |
13.3 |
4.4 |
Other current liabilities |
661.4 |
816.0 |
Total current liabilities |
1,858.3 |
2,133.8 |
Borrowings, non-current |
4,580.4 |
4,596.8 |
Other non-current liabilities |
1,727.0 |
1,879.4 |
Total non-current liabilities |
6,307.4 |
6,476.2 |
Non-controlling interests |
45.4 |
53.9 |
Parent shareholders' equity |
5,159.9 |
5,208.7 |
Total Liabilities and equity |
€ 13,371.0 |
€ 13,872.6 |
DASSAULT
SYSTEMESCONDENSED CONSOLIDATED CASH FLOW
STATEMENTS (IFRS)(unaudited; in millions of Euros)
In millions of Euros |
IFRS reported |
Three months ended |
Nine months ended |
September 30, |
September 30, |
Change |
September 30, |
September 30, |
Change |
2020 |
2019 |
2020 |
2019 |
Net income attributable to equity holders of the parent |
91.9 |
137.4 |
(45.5) |
287.3 |
432.3 |
(145.0) |
Non-controlling interest |
(0.9) |
(0.5) |
(0.3) |
(6.9) |
(6.2) |
(0.8) |
Net income |
91.0 |
136.9 |
(45.9) |
280.3 |
426.2 |
(145.8) |
Depreciation of property and equipment |
43.8 |
33.6 |
10.1 |
135.5 |
98.9 |
36.6 |
Amortization of intangible assets |
96.1 |
53.4 |
42.7 |
312.3 |
158.9 |
153.4 |
Adjustments for other non-cash items |
33.5 |
27.6 |
5.9 |
103.4 |
74.9 |
28.5 |
Changes in working capital |
(116.1) |
(141.5) |
25.4 |
171.8 |
244.8 |
(73.0) |
Net Cash Provided by (Used in) Operating
Activities |
€ 148.3 |
€ 110.1 |
€ 38.2 |
€ 1,003.3 |
€ 1,003.7 |
€ (0.3) |
|
|
|
|
|
|
|
Additions to property, equipment and intangibles |
(17.3) |
(28.5) |
11.2 |
(104.7) |
(76.7) |
(28.1) |
Purchases of short-term investments |
- |
(0.2) |
0.2 |
- |
(0.2) |
0.2 |
Payment for acquisition of businesses, net of cash acquired |
(0.6) |
4.1 |
(4.6) |
(20.0) |
(398.7) |
378.7 |
Other |
0.1 |
2.8 |
(2.7) |
2.5 |
(14.3) |
16.8 |
Net Cash Provided by (Used in) Investing
Activities |
€ (17.8) |
€ (21.7) |
€ 3.8 |
€ (122.2) |
€ (489.8) |
€ 367.6 |
|
|
|
|
|
|
|
Proceeds from exercise of stock options |
28.7 |
26.9 |
1.8 |
76.0 |
72.9 |
3.1 |
Cash dividends paid |
- |
- |
- |
(182.5) |
(168.8) |
(13.7) |
Repurchase and sale of treasury stock |
1.0 |
(44.5) |
45.5 |
(103.7) |
(35.3) |
(68.3) |
Proceeds from borrowings |
10.4 |
3,652.0 |
(3,641.6) |
12.2 |
3,652.0 |
(3,639.8) |
Repayment of borrowings |
(0.1) |
(1,000.0) |
999.9 |
(0.1) |
(1,000.9) |
1,000.8 |
Repayment of lease liabilities |
(22.0) |
(19.3) |
(2.7) |
(69.4) |
(56.6) |
(12.7) |
Net Cash Provided by (Used in) Financing
Activities |
€ 18.0 |
€ 2,615.1 |
€ (2,597.2) |
€ (267.4) |
€ 2,463.3 |
€ (2,730.7) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents |
(42.0) |
59.4 |
(101.4) |
(52.5) |
69.1 |
(121.7) |
|
|
|
|
|
|
|
Increase (decrease) in cash and cash
equivalents |
€ 106.4 |
€ 2,762.8 |
€ (2,656.4) |
€ 561.2 |
€ 3,046.3 |
€ (2,485.1) |
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of
period |
€ 2,399.7 |
€ 3,092.8 |
|
€ 1,944.9 |
€ 2,809.3 |
|
Cash and cash equivalents at end of period |
€ 2,506.1 |
€ 5,855.6 |
|
€ 2,506.1 |
€ 5,855.6 |
|
DASSAULT
SYSTEMESSUPPLEMENTAL NON-IFRS FINANCIAL
INFORMATIONIFRS – NON-IFRS
RECONCILIATION(unaudited; in millions of Euros, except per
share data and percentages)
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 Group’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
Group’s Document d’Enregistrement Universel for the year ended
December 31, 2019 filed with the AMF on March 19, 2020. To
compensate for these limitations, the supplemental non-IFRS
financial information should be read not in isolation, but only in
conjunction with the Group’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 |
2020 |
Adjustment(1) |
2020 |
2019 |
Adjustment(1) |
2019 |
IFRS |
Non-IFRS(4) |
IFRS |
Non-IFRS |
IFRS |
Non-IFRS |
Total Revenue |
€
1,029.6 |
€
0.6 |
€ 1,030.2 |
€
914.8 |
€
(0.8) |
€ 914.0 |
13% |
13% |
Total Revenue breakdown by activity |
|
|
|
|
|
|
|
|
Software revenue |
934.3 |
0.5 |
934.9 |
798.5 |
(1.0) |
797.5 |
17% |
17% |
Licenses and other software revenue |
167.0 |
|
167.0 |
196.4 |
|
196.4 |
(15)% |
(15)% |
Subscription and Support revenue |
767.3 |
0.5 |
767.9 |
602.1 |
(1.0) |
601.1 |
27% |
28% |
Recurring portion of Software revenue |
82% |
|
82% |
75% |
|
75% |
|
|
Services revenue |
95.3 |
0.1 |
95.4 |
116.3 |
0.2 |
116.5 |
(18)% |
(18)% |
Total Software Revenue breakdown by product
line |
|
|
|
|
|
|
|
|
Industrial Innovation |
513.9 |
0.0 |
513.9 |
540.5 |
|
540.5 |
(5)% |
(5)% |
Of which CATIA |
249.2 |
0.0 |
249.2 |
257.0 |
|
257.0 |
(3)% |
(3)% |
Of which ENOVIA (2) |
82.2 |
|
82.2 |
82.2 |
|
82.2 |
0% |
0% |
Life Sciences (3) |
189.8 |
0.4 |
190.1 |
33.2 |
|
33.2 |
471% |
472% |
Mainstream Innovation |
230.7 |
0.1 |
230.8 |
224.8 |
(1.0) |
223.7 |
3% |
3% |
Of which SOLIDWORKS |
205.5 |
|
205.5 |
196.1 |
|
196.1 |
5% |
5% |
Total Revenue breakdown by geography |
|
|
|
|
|
|
|
|
Americas |
393.9 |
0.5 |
394.4 |
306.7 |
(0.6) |
306.1 |
28% |
29% |
Europe |
380.3 |
0.1 |
380.4 |
360.8 |
(0.2) |
360.6 |
5% |
5% |
Asia |
255.4 |
0.0 |
255.4 |
247.3 |
|
247.3 |
3% |
3% |
Total Operating Expenses |
€
(904.9) |
€
165.6 |
€ (739.3) |
€
(722.5) |
€
85.5 |
€ (637.0) |
25% |
16% |
Share-based compensation expense and related social charges |
(55.1) |
55.1 |
- |
(30.0) |
30.0 |
- |
|
|
Amortization of acquired intangible assets and of tangible assets
revaluation |
(92.8) |
92.8 |
- |
(51.1) |
51.1 |
- |
|
|
Lease incentives of acquired companies |
(0.7) |
0.7 |
- |
- |
- |
- |
|
|
Other operating income and expense, net |
(17.0) |
17.0 |
- |
(4.4) |
4.4 |
- |
|
|
Operating Income |
€
124.7 |
€
166.2 |
€ 290.9 |
€
192.3 |
€
84.6 |
€ 276.9 |
(35)% |
5% |
Operating Margin |
12.1% |
|
28.2% |
21.0% |
|
30.3% |
|
|
Financial income (loss), net |
(5.9) |
0.2 |
(5.7) |
1.4 |
0.9 |
2.3 |
(519)% |
(347)% |
Income tax expense |
(27.7) |
(46.6) |
(74.3) |
(56.8) |
(19.4) |
(76.2) |
(51)% |
(2)% |
Non-controlling interest |
0.9 |
(1.4) |
(0.5) |
0.5 |
(1.1) |
(0.5) |
57% |
(5)% |
Net Income attributable to shareholders |
€
91.9 |
€
118.4 |
€ 210.3 |
€
137.4 |
€
65.1 |
€ 202.5 |
(33)% |
4% |
Diluted Net Income Per Share (5) |
€ 0.35 |
€ 0.45 |
€ 0.80 |
€ 0.53 |
€ 0.25 |
€ 0.78 |
(34)% |
3% |
(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 intangible assets and of tangible assets
revaluation, share-based compensation expense and related social
charges, and lease incentives of acquired companies, as detailed
below, and other operating income and expense, net including
impairment of goodwill and acquired intangible assets (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 with respect
to 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, except percentages |
Three months ended September 30, |
Change |
2020IFRS |
Share-based compensation expense and related social
charges |
Lease incentives of acquired companies |
2020Non-IFRS |
2019IFRS |
Share-based compensation expense and related social
charges |
Lease incentives of acquired companies |
2019Non-IFRS |
IFRS |
Non-IFRS |
Cost of revenue |
(185.0) |
3.6 |
0.2 |
(181.2) |
(143.5) |
1.5 |
- |
(142.0) |
29% |
28% |
Research and development |
(230.1) |
19.9 |
0.3 |
(209.9) |
(170.5) |
13.2 |
- |
(157.3) |
35% |
33% |
Marketing and sales |
(294.1) |
16.4 |
0.1 |
(277.6) |
(283.8) |
9.9 |
- |
(273.9) |
4% |
1% |
General and administrative |
(85.9) |
15.2 |
0.1 |
(70.7) |
(69.2) |
5.3 |
- |
(63.9) |
24% |
11% |
Total |
|
€ 55.1 |
€ 0.7 |
|
|
€ 30.0 |
€ - |
|
|
|
(2) Excluding ENOVIA Life Sciences Compliance and Quality
Management (Q3 2019: €2.6m). (3) Including ENOVIA Life Sciences
Compliance and Quality Management (Q3 2019: €2.6m).
(4) 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.(5) Based on a weighted average 263.2 million diluted
shares for Q3 2020 and 261.1 million diluted shares for Q3
2019.
DASSAULT
SYSTEMESSUPPLEMENTAL NON-IFRS FINANCIAL
INFORMATIONIFRS – NON-IFRS
RECONCILIATION(unaudited; in millions of Euros, except per
share data and percentages)
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 Group’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
Group’s Document d’Enregistrement Universel for the year ended
December 31, 2019 filed with the AMF on March 19, 2020. To
compensate for these limitations, the supplemental non-IFRS
financial information should be read not in isolation, but only in
conjunction with the Group’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 |
2020 |
Adjustment(1) |
2020 |
2019 |
Adjustment(1) |
2019 |
IFRS |
Non-IFRS(4) |
IFRS |
Non-IFRS |
IFRS |
Non-IFRS |
Total Revenue |
€
3,233.0 |
€
12.2 |
€ 3,245.2 |
€
2,835.1 |
€
8.3 |
€ 2,843.4 |
14% |
14% |
Total Revenue breakdown by activity |
|
|
|
|
|
|
|
|
Software revenue |
2,907.3 |
11.0 |
2,918.3 |
2,501.2 |
6.8 |
2,508.0 |
16% |
16% |
Licenses and other software revenue |
508.5 |
|
508.5 |
658.1 |
|
658.1 |
(23)% |
(23)% |
Subscription and Support revenue |
2,398.8 |
11.0 |
2,409.8 |
1,843.1 |
6.8 |
1,849.9 |
30% |
30% |
Recurring portion of Software revenue |
83% |
|
83% |
74% |
|
74% |
|
|
Services revenue |
325.7 |
1.2 |
326.8 |
333.9 |
1.5 |
335.3 |
(2)% |
(3)% |
Total Software Revenue breakdown by product
line |
|
|
|
|
|
|
|
|
Industrial Innovation |
1,663.9 |
0.8 |
1,664.7 |
1,742.8 |
|
1,742.8 |
(5)% |
(4)% |
Of which CATIA |
771.0 |
0.8 |
771.8 |
807.6 |
|
807.6 |
(5)% |
(4)% |
Of which ENOVIA (2) |
246.3 |
|
246.3 |
264.6 |
|
264.6 |
(7)% |
(7)% |
Life Sciences (3) |
569.2 |
9.7 |
578.9 |
102.5 |
0.5 |
103.0 |
456% |
462% |
Mainstream Innovation |
674.2 |
0.5 |
674.8 |
656.0 |
6.3 |
662.3 |
3% |
2% |
Of which SOLIDWORKS |
605.5 |
|
605.5 |
590.3 |
|
590.3 |
3% |
3% |
Total Revenue breakdown by geography |
|
|
|
|
|
|
|
|
Americas |
1,250.7 |
11.5 |
1,262.1 |
909.3 |
6.5 |
915.8 |
38% |
38% |
Europe |
1,179.4 |
0.4 |
1,179.8 |
1,163.0 |
1.8 |
1,164.8 |
1% |
1% |
Asia |
802.9 |
0.4 |
803.3 |
762.8 |
|
762.8 |
5% |
5% |
Total Operating Expenses |
€
(2,846.6) |
€
512.7 |
€ (2,333.9) |
€
(2,244.8) |
€
291.1 |
€ (1,953.8) |
27% |
19% |
Share-based compensation expense and related social charges |
(158.9) |
158.9 |
- |
(110.5) |
110.5 |
- |
|
|
Amortization of acquired intangible assets and of tangible assets
revaluation |
(302.7) |
302.7 |
- |
(152.2) |
152.2 |
- |
|
|
Lease incentives of acquired companies |
(2.2) |
2.2 |
- |
- |
- |
- |
|
|
Other operating income and expense, net |
(48.9) |
48.9 |
- |
(28.4) |
28.4 |
- |
|
|
Operating Income |
€
386.4 |
€
524.9 |
€ 911.2 |
€
590.3 |
€
299.3 |
€ 889.6 |
(35)% |
2% |
Operating Margin |
12.0% |
|
28.1% |
20.8% |
|
31.3% |
|
|
Financial income (loss), net |
(18.9) |
0.7 |
(18.2) |
6.7 |
(0.3) |
6.5 |
(381)% |
(382)% |
Income tax expense |
(87.1) |
(137.3) |
(224.4) |
(170.8) |
(83.9) |
(254.7) |
(49)% |
(12)% |
Non-controlling interest |
6.9 |
(3.9) |
3.0 |
6.2 |
(4.5) |
1.7 |
13% |
80% |
Net Income attributable to shareholders |
€
287.3 |
€
384.4 |
€ 671.7 |
€
432.3 |
€
210.7 |
€ 643.0 |
(34)% |
4% |
Diluted Net Income Per Share (5) |
€ 1.09 |
€ 1.46 |
€ 2.55 |
€ 1.66 |
€ 0.80 |
€ 2.46 |
(34)% |
4% |
(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 intangible assets and of tangible assets
revaluation, share-based compensation expense and related social
charges, and lease incentives of acquired companies, as detailed
below, and other operating income and expense, net including
impairment of goodwill and acquired intangible assets (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 with respect
to 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, except percentages |
Nine months ended September 30, |
Change |
2020IFRS |
Share-based compensation expense and related social
charges |
Lease incentives of acquired companies |
2020Non-IFRS |
2019IFRS |
Share-based compensation expense and related social
charges |
Lease incentives of acquired companies |
2019Non-IFRS |
IFRS |
Non-IFRS |
Cost of revenue |
(565.7) |
9.6 |
0.6 |
(555.4) |
(439.6) |
5.0 |
- |
(434.5) |
29% |
28% |
Research and development |
(703.7) |
56.6 |
1.0 |
(646.0) |
(527.7) |
48.1 |
- |
(479.6) |
33% |
35% |
Marketing and sales |
(941.4) |
46.6 |
0.3 |
(894.4) |
(875.5) |
33.0 |
- |
(842.5) |
8% |
6% |
General and administrative |
(284.3) |
46.0 |
0.3 |
(238.0) |
(221.5) |
24.4 |
- |
(197.2) |
28% |
21% |
Total |
|
€ 158.9 |
€ 2.2 |
|
|
€ 110.5 |
€ - |
|
|
|
(2) Excluding ENOVIA Life Sciences Compliance and Quality
Management (YTD 2019: €9.6m).(3) Including ENOVIA Life Sciences
Compliance and Quality Management (YTD 2019: €9.6m).
(4) 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.(5) Based on a weighted average 263.0 million diluted
shares for YTD 2020 and 260.9 million diluted shares for YTD
2019.
- Dassault Systèmes Reports Strong Third Quarter Operational
Performance, Confirms its 2020 non-IFRS EPS Objective
Dassault Systemes (EU:DSY)
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