Dassault Systemes SE · EURONEXT:DSY
Dassault Systemes — Oddo Securities Conference 2007
47 slides from Dassault Systemes's conference presentation, May 25, 2007
Slide 1: Dassault Systèmes – Oddo Securities Conference
Présentation Dassault Systèmes Conference Oddo Securities 25 mai 2007 Thibault de Tersant, Senior EVP and CFO
Slide 2: Forward Looking Information
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 our non-GAAP financial performance objectives are forward-looking statements (within the meaning of Section 21E of the
Slide 3: Non-GAAP Adjustments to US GAAP Information
Non-GAAP Adjustments to US GAAP Information Financial information reported in accordance with US GAAP is specifically indicated as “US GAAP”. Supplemental non-GAAP financial information is also presented and excludes the effect of adjusting the carrying value of acquired companies’ deferred revenue,
Slide 4: Dassault Systèmes at a Glance
Dassault Systèmes at a Glance ¾World leader in Product Lifecycle Management (PLM) solutions ¾2006 revenue: €1.18bn, ~$1.48bn, +27% ex FX ¾~7,000 employees in 25 countries • +3,000 working for R+D in 7 countries ¾ 100,000 customers – 3,500 Ecosystem partners ¾ Listed on NASDAQ (DASTY) and Euronext ¾
Slide 5: Strengthening the leadership in PLM & 3D
Strengthening the leadership in PLM & 3D 1 Achieving a Solid Q1 performance Widening Technological Gap & Offering the most 2 Comprehensive PLM Portfolio 3 Confirming Leadership 4 Transforming PLM Channel for Mid-market 5 Confirming 5-Year Plan DASSAULT SYSTEMES – May, 2007 - Page 5
Slide 6: Q107 Financial Highlights (non-GAAP)
Q107 Financial Highlights (non-GAAP*) Q1 07 Revenue (€m) 294.7 Growth ex FX +21% Software Revenue growth ex FX +21% Software Revenue Growth ex FX ex MatrixOne +12% Operating Margin 22.1% EPS Growth +15% Good Q1 results driven by: 9 solid performance in PLM mid-market & in large accounts 9 2D to 3D m
Slide 7: Q107 Financial Highlights (non-GAAP)
Q107 Financial Highlights (non-GAAP*) Revenue growth ex FX by product line Revenue growth ex FX by region Q107 Q107 PLM +23% Americas +38% ENOVIA +139% Europe +10% SolidWorks +16% Asia +21% Total +21% Total +21% All product lines & all regions contributing to good performance Increasing leadership o
Slide 8: Strong ENOVIA Quarter Illustrates successful Portfolio
Strong ENOVIA Quarter Illustrates successful Portfolio Strong non-GAAP performance* in Q1 ENOVIA revenue: +139% YoY growth ex FX ENOVIA VPLM & SmarTeam revenue: +29% YoY growth ex FX Total Q107 end-user ENOVIA: $198 million, +63% YoY growth Expanding ENOVIA footprint Winning with PLM based Digital M
Slide 9: CATIA Design Excellence
CATIA Design Excellence Acquiring ICEM, Leader in Styling & High Quality Surface Modeling (Class A) Company profile: €20 m revenue in 2006 80 employees 740 customers Price of the acquisition estimated at €51.4 m, subject to closing and future performance adjustment Rationale of the acquisition: Comp
Slide 10: Strengthening the leadership in PLM & 3D
Strengthening the leadership in PLM & 3D 1 Achieving a Solid Q1 performance Widening Technological Gap & Offering the most 2 Comprehensive PLM Portfolio 3 Confirming Leadership 4 Transforming PLM Channel for Mid-market 5 Confirming 5-Year Plan DASSAULT SYSTEMES – May, 2007 - Page 10
Slide 11: DS Strategy = Innovation
DS Strategy = Innovation “Enabling Industries Business Transformations” … Realistic Simulation “PLM: driving innovation with Business virtual lifecycle management” Process DS becomes world leader PLM 1981: start of 3D deployment DMU 3D Product Knowledge Process 2D Resource Inside Virtual Product Mod
Slide 12: DS: Long Term Focus
DS: Long Term Focus « Define, Control & Monitor the Physical World » “See What You Mean” 3D Collaborative Innovation « See What you Mean » 3D For All Product & Services Production Performance Excellence PLM Automation DASSAULT SYSTEMES – May, 2007 - Page 12
Slide 13: DELMIA Automation
DELMIA Automation DELMIA Automation provides solutions to digitally design, test and validate the control of a machine, work cell, line or entire factory First DELMIA Automation release in 2006 to validate PLC in a 3D environment First customer references in 2006 Strong competitive advantages Multi-
Slide 14: Strengthening the leadership in PLM & 3D
Strengthening the leadership in PLM & 3D 1 Achieving a Solid Q1 performance Widening Technological Gap & Offering the most 2 Comprehensive PLM Portfolio 3 Confirming Leadership 4 Transforming PLM Channel for Mid-market 5 Confirming 5-Year Plan DASSAULT SYSTEMES – May, 2007 - Page 14
Slide 15: Confirming Leadership & Increasing Market Share
Confirming Leadership & Increasing Market Share 30% Daratech 2006 PLM Market Estimate = 25% 25% $11.45bn, up +8% vs 23% 21% 22% 2005 18%18%18% 19% 19% 20% 19% 18% 15% 15% 10% 10% 10%10% 10% 10% 10% 8% 9% 7% 5% 5% 4% 4% 0% DS UGS PTC Autodesk Source: Daratech & Internal Data 2001 2002 2003 2004 2005
Slide 16: Expanding PLM Scope for Growth
Expanding PLM Scope for Growth Growing with brand leadership DS covers the entire PLM market DS continues to expand its footprint in faster growing markets 2006 Market size* DS brand Market position Design for PLM $4.1bn CATIA n°1 PDM $2.5bn ENOVIA n°2 Simulation $2.6bn SIMULIA n°3 Digital Manufactu
Slide 17: Customer | Industry knowledge | People
Customer | Industry knowledge | People 100,000 Customers 1 Million Users Automotive Aerospace Ship Industrial High Tech Consumer Consumer Life Architecture Energy Services Equipment Goods Sciences Construction Packaged Goods Cars & Light Airframe Ships Builders Fabricated Consumer Furniture Food & P
Slide 18: Progressing in New Markets with ENOVIA MatrixOne
Progressing in New Markets with ENOVIA MatrixOne Context Brazilian manufacturer of more than 600 beauty products ~$1,5 Bn 2005 revenue Introduced 213 new products in 2005 Achievements Selected ENOVIA MatrixOne to create collaborative environment to support the product development process, guaranteei
Slide 19: Progressing in New Markets with ENOVIA MatrixOne
Progressing in New Markets with ENOVIA MatrixOne Context Leading US company in apparel ~$1bn turnover in 2005 Brands include GUESS?, Marciano, LADA Achievements Selected ENOVIA MatrixOne Apparel Accelerator for Design and Development to create a central data repository making ALL product data access
Slide 20: Strengthening the leadership in PLM & 3D
Strengthening the leadership in PLM & 3D 1 Achieving a Solid Q1 performance Widening Technological Gap & Offering the most 2 Comprehensive PLM Portfolio 3 Confirming Leadership 4 Transforming PLM Channel for Mid-market 5 Confirming 5-Year Plan DASSAULT SYSTEMES – May, 2007 - Page 20
Slide 21: DS 07: to Reach and Extend
DS 07: to Reach and Extend Share in PLM Share in DS 2006 DS distribution Market Total Revenue channels $11.5 bn PLM in Large 50% ~56% DS sales force & IBM Customers Update PLM in mid- PLM on PLM 35% ~25% market channel Sales Mid- market Channel 3D Mechanical 15% 19% SolidWorks CAD channel DASSAULT S
Slide 22: PLM Expansion in Mid-Market
PLM Expansion in Mid-Market Rationale: accelerate CATIA and ENOVIA revenue growth in mid-market PLM mid-market represents 35% of the PLM Market New fit between customer needs, solution availability and PLM adoption in mid-market, Need a simplified and more efficient Channel Operation to leverage our
Slide 23: Implementing a new DS PLM Value Channel
Implementing a new DS PLM Value Channel Strong Existing Assets for Growth A solution responding well to mid-market specific needs 9 A simplified packaging to articulate PLM value to mid-market 9 An existing channel made of IBM BPs and DS VARs (~200 resellers) 9 A DS experienced organization already
Slide 24: DS PLM Value Channel Status in Q107
DS PLM Value Channel Status in Q107 PLM Channel under complete DS responsibility in 16 countries Introduction of a new model with the channel Business Partners become DS VARs New business model: increase in resellers’ fees New customer engagement model Next steps Transition 20 countries to DS VAR mo
Slide 25: Strengthening the leadership in PLM & 3D
Strengthening the leadership in PLM & 3D 1 Achieving a Solid Q1 performance Widening Technological Gap & Offering the most 2 Comprehensive PLM Portfolio 3 Confirming Leadership 4 Transforming PLM Channel for Mid-market 5 Confirming 5-Year Plan DASSAULT SYSTEMES – May, 2007 - Page 25
Slide 26: 2005-2010 Growth Plan
2005-2010 Growth Plan Double Revenue Double EPS DS Revenue* DS EPS* €m € 1,900 2000 3.20 3.5 3.0 2x 2.5 2x 1000 944 2.0 1.59 1.5 1.0 0.5 0 0.0 2005 2010e 2005 2010e * Non-GAAP data, excluding the effect of adjusting the carrying value of acquired companies’ deferred revenue, amortization of acquired
Slide 27: DS Objectives (non-GAAP)
DS Objectives (non-GAAP*) €m 2Q07 2007 Revenue 298-302 1,275-1,285 Growth +4-6% +8-9% Growth ex FX +9-11% ~+13% Operating Margin ~22% ~27% EPS (€) 0.38-0.40 2.00-2.05 EPS Growth +3-8% +9-12% €/US$ Rate 1.35 1.34 €/JPY Rate 160 159 * See Appendix for accounting elements not included in the non-GAAP o
Slide 28: Appendix
Appendix 2 BS voir SYSTEMES
Slide 29: Exchange Rate Evolution
Exchange Rate Evolution €/US$ - 1Q07/1Q06 Variance €/JPY – 1Q07/1Q06 Variance Average €/US$ Average €/JPY rate => +9% rate => +11% Average Exchange rates 1Q07 1Q06 Var. €/US$ 1.31 1.20 +9% €/JPY 156.5 140.5 +11% DASSAULT SYSTEMES – May, 2007 - Page 29
Slide 30: Estimated Breakdown of P&L by currency for 2007
Estimated Breakdown of P&L by currency for 2007 US$ JPY/Won Revenue 41% 14% (As a % of Revenue) Operating Expenses 45% 5% (As a % of Expenses) DASSAULT SYSTEMES – May, 2007 - Page 30
Slide 31: Software Revenue & Margin Evolution
Software Revenue & Margin Evolution (non-GAAP*) +15.0% +21% ex FX €m 250 240 230 249.6 220 210 217.0 200 190 180 170 160 150 1Q06 1Q07 SW Gross Margin 95.0% 94.9% * For a reconciliation to US GAAP financial information, please refer to the tables in the Appendix. DASSAULT SYSTEMES – May, 2007 - Page
Slide 32: CATIA: 3D Virtual Product
CATIA: 3D Virtual Product CATIA Units CATIA V5 ASP (€) 16,000 12,500 0%* +2% 12,000 10,000 -5% 7,500 8,000 12,840 12,154 7,673 7,812 5,000 4,000 2,500 0 0 1Q06 1Q07 1Q06 1Q07 CATIA V5 Price CATIA V5 Price ex FX Reported *Excluding Exchange Rate Impact Solid CATIA performance both in large accounts a
Slide 33: SolidWorks: 3D MCAD
SolidWorks: 3D MCAD SolidWorks Units SolidWorks ASP (€) 6,000 -3%* 15,000 +15% -8% 12,500 4,000 10,000 5,165 4,739 7,500 11,813 2,000 10,271 5,000 2,500 0 0 1Q06 1Q07 1Q06 1Q07 SOWK Price SOWK Price ex FX Reported *Excluding Exchange Rate Impact Assuming a 45% average VAR margin Good SolidWorks grow
Slide 34: Recurring Software Revenue Evolution
Recurring Software Revenue Evolution (non-GAAP*) % of SW revenue 250 200 39% 44% 150 100 61% 56% 50 0 1Q06 1Q07 Recurring Non recurring NB: Recurring software revenue excludes product development * For a reconciliation to US GAAP financial information, please refer to the tables in the Appendix. DAS
Slide 35: Service Revenue & Margin Evolution
Service Revenue & Margin Evolution (non-GAAP*) +15.6% €m +22% ex FX 50 45 40 45.1 35 30 25 39.0 20 15 10 5 0 1Q06 1Q07 Service Gross Margin 19.5% 11.1% * For a reconciliation to US GAAP financial information, please refer to the tables in the Appendix. DASSAULT SYSTEMES – May, 2007 - Page 35
Slide 36: Revenue per Region (US GAAP)
Revenue per Region (US GAAP) 1Q 2007 Revenue 1Q 2006 Revenue Asia Asia 25% Americas Americas 26% 30% 33% Europe Europe 44% 42% in €m 1Q07 1Q06 Growth Growth ex FX Americas 96.1 75.8 +27% +38% Europe 122.8 111.6 +10% +10% Asia 72.0 64.7 +11% +22% Total Revenue 290.9 252.1 +15% +21% DASSAULT SYSTEMES
Slide 37: Revenue per Region (non-GAAP)
Revenue per Region (non-GAAP*) 1Q 2007 Revenue 1Q 2006 Revenue Asia Asia Americas 26% 25% Americas 30% 33% Europe Europe 42% 44% in €m 1Q07 1Q06 Growth Growth ex FX Americas 98.0 77.2 +27% +38% Europe 124.2 113.2 +10% +10% Asia 72.5 65.6 +11% +21% Total Revenue 294.7 256.0 +15% +21% * For a reconcil
Slide 38: Revenue per Product Line (US GAAP)
Revenue per Product Line (US GAAP) 1Q 2006 Revenue 1Q 2007 Revenue SolidWorks SolidWorks 20% 19% ENOVIA PLM ex 10% ENOVIA ENOVIA PLM ex 20% 61% ENOVIA 70% Growth in €m 1Q07 1Q06 Growth ex FX PLM 235.0 200.9 +17% +23% of which ENOVIA 57.4 26.3 +118% +130% SolidWorks 55.9 51.2 +9% +15% Total Revenue 2
Slide 39: Revenue per Product Line (non-GAAP)
Revenue per Product Line (non-GAAP*) 1Q 2007 Revenue 1Q 2006 Revenue SolidWorks SolidWorks 19% 20% ENOVIA PLM ex 10% ENOVIA PLM ex ENOVIA 61% ENOVIA 20% 70% in €m 1Q07 1Q06 Growth Growth ex FX PLM 237.3 203.7 +16% +23% of which ENOVIA 59.7 26.3 +127% +139% SolidWorks 57.4 52.3 +10% +16% Total Revenu
Slide 40: Operating Income Evolution (non-GAAP)
Operating Income Evolution (non-GAAP*) Operating Income Operating Income ex FX +16% +7.6% 80 80 60 60 70.1 60.5 65.1 In Millions € In Millions € 60.5 40 40 20 20 0 0 1Q06 1Q07 1Q06 1Q07 Op. Margin 23.6% 22.1% Op. Margin 23.6% 22.6% * For a reconciliation to US GAAP financial information, please refe
Slide 41: EPS Growth (non-GAAP)
EPS Growth (non-GAAP*) EPS Growth EPS Growth ex FX +14.7% +24% 0.50 0.50 0.40 0.40 0.42 0.39 0.30 0.34 0.30 0.34 € € 0.20 0.20 0.10 0.10 0.00 0.00 1Q06 1Q07 1Q06 1Q07 * For a reconciliation to US GAAP financial information, please refer to the tables in the Appendix. DASSAULT SYSTEMES – May, 2007 -
Slide 42: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows (US GAAP) in €m 1Q07 1Q06 delta NET CASH PROVIDED BY (USED IN) OPERATING (I) 108.4 101.2 +7.2 Net Profit 32.9 31.3 +1.6 Other Non Cash P&L Items 18.0 14.4 +3.6 Working Capital 57.5 55.5 +2.0 NET CASH PROVIDED BY (USED IN) INVESTING (II) -6.7 -7.6 0.9 Sale of asse
Slide 43: Balance Sheet Evolution (US GAAP)
Balance Sheet Evolution (US GAAP) CONSOLIDATED BALANCE SHEET in €m Variation ASSETS Mar-07 Dec-06 Mar 07 / Dec 06 Cash and short-term investments 562.1 459.2 102.9 Accounts receivable, net 262.5 303.6 -41.1 Other assets 1,086.8 1,093.2 -6.4 Total Assets 1,911.4 1,856.0 55.4 LIABILITIES AND SHAREHOLD
Slide 44: 1Q07 US GAAP – non-GAAP reconciliation
1Q07 US GAAP – non-GAAP reconciliation Revenue and Gross margin (€ million, except % and per share data) Three months ended March 31, Increase (Decrease) 2007 Adjustment 2007 2006 Adjustment 2006 GAAP non-GAAP GAAP (1) non-GAAP GAAP (1) non-GAAP (2) TOTAL REVENUE 290.9 3.8 294.7 252.1 3.9 256.0 +15%
Slide 45: 1Q07 US GAAP – non-GAAP reconciliation
1Q07 US GAAP – non-GAAP reconciliation Expenses and Earnings (€ million, except % and per share data) Three months ended March 31, Increase (Decrease) 2007 Adjustment 2007 2006 Adjustment 2006 GAAP non-GAAP GAAP (1) non-GAAP GAAP (1) non-GAAP (2) Total Operating Expenses 244.8 (15.2) 229.6 204.9 (9.
Slide 46: Accounting elements not included in the non-GAAP 2007 Objectives
Accounting elements not included in the non-GAAP 2007 Objectives FY 2007 estimated deferred revenue write-down: about €8m FY 2007 estimated stock-based compensation expenses (SFAS 123R): about €13m FY07 impact about 5% of non-GAAP net income Q2 2007 estimated amount of amortization of acquired intan
Slide 47: Thank You
Thank You Enter a new Era with 3D : DASSAULT SYSTEMES – May, 2007 - Page 47