Dassault Systèmes’ Capital Markets Day: On Trajectory to Achieve 2024 Objectives, Outlining Long-Term Growth Opportunities

Rhea-AI Summary

Dassault Systèmes held its 2022 Capital Markets Day on June 16, 2022, outlining its trajectory to achieve non-IFRS EPS objectives of €1.20 by 2024. Executive management emphasized the company’s strong position in the market, projecting growth across manufacturing, life sciences, and infrastructure sectors. The integration of Medidata diversifies opportunities, addressing a market potential of €100 billion. The firm reported a high cash conversion rate, achieving its deleveraging target ahead of schedule, ensuring financial flexibility for strategic priorities.

Positive

• On track to achieve 2024 EPS target of €1.20.
• Successful integration of Medidata expands market opportunities.
• Positioned to capitalize on €100 billion market potential.
• High cash conversion rate achieved, deleveraging target met ahead of schedule.

Negative

• Potential economic uncertainties may impact customer investment decisions.
• Lengthy sales cycles could further delay revenue recognition.

Press Release
VELIZY-VILLACOUBLAY — June 16, 2022

Dassault Systèmes’ Capital Markets Day:

On Trajectory to Achieve 2024 Objectives,

Outlining Long-Term Growth Opportunities

Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) will host its 2022 Capital Markets Day at the company’s headquarters in Vélizy-Villacoublay, France, today, June 16, 2022. The event, dedicated to financial analysts and shareholders, includes a series of presentations by Dassault Systèmes’ Executive Management to discuss the firm’s business, strategy and objectives: the company is on the trajectory to achieve its 2024 non-IFRS EPS objective and is well positioned to capitalize on significant long-term growth opportunities.

Today’s 2022 Capital Markets Day, commencing at 8:00 AM New York time / 2:00 PM Paris time / 1:00 PM London time, will be webcast live and recorded. Both the live sessions and replays can be accessed via Dassault Systèmes’ investor website: https://investor.3ds.com. The on demand webcast of the event will be available from June 19, 2022.

Bernard Charlès, Dassault Systèmes’ Vice Chairman of the Board and Chief Executive Officer commented:

“The world is transforming with sustainable experiences as the central pillar of the new era. Our clients across all industries are relying on Dassault Systèmes to create differentiated offerings within a sustainable economy.

To transform the real world, we leverage the virtual world. Science-based virtual twin experiences combine a multi-scale, multi-physics approach with artificial intelligence and data sciences to understand the real world, enabling a whole set of possibilities that only platform based, industry focused solutions can provide.

We started with virtual twins for objects – planes, cars, factories, cities –we extended this capability to life – including human beings. With the 3DEXPERIENCE IFWE Loop, we provide a holistic view, combining value creation and value experienced – continuity across the WHAT, the HOW and the USE. Covering the full experience lifecycle, we foster sustainability by anticipating the recycling of products from their design to quantify the environmental impacts and optimize circularity.

Our clients see reinventing a sustainable economy as both a challenge and a significant opportunity to differentiate. They appreciate our raison d'etre: to harmonize product, nature and life. This is deeply rooted in our heritage and remains our great ambition. IFWE utilize science to unlock the power of human ingenuity, together we can improve the lives of consumers, patients and citizens.

We have laid a solid foundation to support our long-term initiatives by establishing our next generation of leaders. We have the right governance and team in place to enable Dassault Systèmes’ growth well into the future.”

Pascal Daloz, Dassault Systèmes’ Chief Operating Officer, commented:

“With our successful integration of Medidata, we have diversified our business and expanded our breadth and depth of opportunities. Today, addressing €45 billion of a potential €100 billion market, we have significant room to grow across all three sectors of the economy we serve: Manufacturing Industries, Life Sciences & Healthcare and Infrastructure & Cities.

Our numerous strategic growth drivers and strong operating model position us well to capitalize on this substantial opportunity and outpace the growth of the overall market. Our established leadership positions across industries and domains along with our platform approach support our value-up, value-wide strategies.

In addition, our 3DEXPERIENCE IFWE Loop creates a multiplier effect. It allows us to expand our value proposition by connecting people, data and ideas, as well as broaden our audience by extending virtual twin experiences to all stakeholders, ultimately reaching consumers, patients and citizens. This will be our next frontier. ”

Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:

“As we look to the future, we will continue to build upon our track record of consistent execution and financial performance. We are on the trajectory to achieve our 2024 EPS target of €1.20. More importantly, we are not opportunity constrained and have considerable room to grow. Our platform and cloud strategy creates a multiplier effect to drive sustainable organic growth. Our customers are choosing cloud to accelerate innovation, speed of execution and to advance new business models. This trend is also becoming a catalyst to progressively transform Dassault Systèmes.

We are in a position of strength. Our high cash conversion rate contributed to reaching our deleveraging target one year ahead of schedule. This disciplined capital allocation strategy creates ample financial flexibility to advance our strategic priorities though organic growth as well as acquisitions.

We are confident in our ability to continue to strengthen our robust business model, which provides close to 80% recurring revenue, and to execute successfully against the significant opportunities before us.”

Investor Relations Events

• Second Quarter 2022 Earnings Release: July 26, 2022
• Third Quarter 2022 Earnings Release: October 26, 2022
• Fourth Quarter 2022 Earnings Release: February 2, 2023
  
  

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 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 actual results or performance may be materially negatively affected by numerous risks and uncertainties, as described in the “Risk Factors” section 1.9 of the 2021 Universal Registration Document (‘Document d'enregistrement universel’) filed with the AMF (French Financial Markets Authority) on March 17, 2022, available on the Group’s website www.3ds.com.

In particular, please refer to the risk factor “Uncertain Global Economic Environment” in section 1.9.1.1 of the 2021 Universal Registration Document set out below for ease of reference:

“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 political, economic and monetary situation in certain geographic regions where Dassault Systèmes operates could become more volatile and impact Dassault Systèmes’ business, for example, due to stricter export compliance rules or the introduction of new customs tariffs;
• continued pressure or volatility on raw materials and energy prices could also slow down Dassault Systèmes’ diversification efforts in new industries;
• current inflation forecasts, as well as uncertainties regarding the extent and duration of this trend, could adversely affect the financial condition of Dassault Systèmes; and
• the sales cycle of the Dassault Systèmes’ products – already relatively long due to the strategic nature of such investments for customers – could further lengthen.
  
  

The occurrence of crises – health and geopolitical crises in particular – could have consequences for the health and safety of Dassault Systèmes’ employees. It could 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. A deteriorating economic environment could generate increased price pressure and affect the collection of receivables, which would negatively impact Dassault Systèmes’ revenue, financial performance and market position.

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 Company’s business results.”

The Group’s 2020-2024 non-IFRS EPS objective and key underlying financial estimates are based upon the following principal exchange rates over this timeframe: 1) an average US dollar to euro exchange rate of US$1.20 per €1.00; 2) an average Japanese yen to euro exchange rate of JPY125.0 to €1.00 before hedging; as well as 3) a continuation of current exchange rates for other major currencies in which it transacts business. 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 financial 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 in isolation from or as a substitute for IFRS measurements. The supplemental non-IFRS financial information should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS. Furthermore, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Specific limitations for individual non-IFRS measures are set forth in the Company’s 2021 Universal Registration Document filed with the AMF on March 17, 2022.

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FOR MORE INFORMATION

Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

ABOUT DASSAULT SYSTÈMES

Dassault Systèmes, the 3DEXPERIENCE Company, is a catalyst for human progress. We provide business and people with collaborative 3D virtual environments to imagine sustainable innovations. By creating virtual twin experiences of the real world with our 3DEXPERIENCE platform and applications, our customers push the boundaries of innovation, learning and production to achieve a more sustainable world for patients, citizens, and consumers.  Dassault Systèmes brings value to more than 300,000 customers of all sizes, in all industries, in more than 130 countries. For more information, visit www.3ds.com

Dassault Systèmes Investor Relations Team                FTI Consulting
François-José Bordonado /Béatrix Martinez:                Arnaud de Cheffontaines: +33 1 47 03 69 48
+33 1 61 62 69 24/70 21                                Jamie Ricketts : +44 20 3727 1600
investors@3ds.com                                        Elena Kalinskaya: +44 20 3727 1600
USA & Canada: callie.gauzer@3ds.com                 

Dassault Systèmes Press Contact
Arnaud Malherbe
+33 1 61 62 87 73
arnaud.malherbe@3ds.com

© Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the Compass icon, the 3DS logo, CATIA, BIOVIA, GEOVIA, SOLIDWORKS, 3DVIA, ENOVIA, 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

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• Dassault Systèmes’ Capital Markets Day: On Trajectory to Achieve 2024 Objectives, Outlining Long-Term Growth Opportunities

FAQ

What are Dassault Systèmes' 2024 EPS objectives?

Dassault Systèmes aims to achieve a non-IFRS EPS target of €1.20 by 2024.

What market potential is Dassault Systèmes addressing?

The company is addressing a market potential of €100 billion across various sectors.

When was Dassault Systèmes' Capital Markets Day held?

The Capital Markets Day was held on June 16, 2022.

How has Dassault Systèmes improved its financial position?

The company achieved a high cash conversion rate and met its deleveraging target one year ahead of schedule.

What challenges could affect Dassault Systèmes' growth?

Economic uncertainties may impact investment decisions by customers, and lengthy sales cycles could delay revenue recognition.