Slide 1: Dassault Systèmes Presentation
Dassault Systèmes Presentation June 2009 investors@3ds.com +33 1 61 62 69 24
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 the Company’s non-IFRS financial performance objectives, are forward- looking statements. Such forward-looking statemen
Slide 3: Non-IFRS Financial Information & Information in Constant Currencies
Non-IFRS Financial Information & Information in Constant Currencies Readers are cautioned that the supplemental non-IFRS (previously referred to as “adjusted IFRS”) information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting
Slide 4: Agenda
Agenda 1. Q109 Business Highlights 2. Q209 & 2009 Objectives 3. Financial Information Appendix Dassault Systèmes – Presentation – June, 2009 - Page 4
Slide 5: Q109 Business Highlights
Q109 Business Highlights Non-IFRS* Q109 Revenue (€m) 310.7 Growth +1% Growth ex FX (6%) Software Revenue growth ex FX (5%) Operating Margin 19.4% EPS 0.37 EPS Growth (-10%) • Business environment weakened further in Q109 • Operating margin & EPS in line thanks to good execution on cost cutting initi
Slide 6: Q109 Business Highlights: Revenue growth by region
Q109 Business Highlights Non-IFRS* Revenue growth ex FX by region Q109 Americas (10%) Europe +0% Asia (11%) Total (6%) • More pronounced decline compared to Q408 in Americas & Asia • Americas: slowdown both in large accounts and mid-market • Europe : environment and performance similar to Q408 • Asi
Slide 7: Q109 Business Highlights: Software revenue by product line
Q109 Business Highlights Non-IFRS* Software revenue growth ex FX by product line Q109 PLM (6%) CATIA (11%) ENOVIA (18%) Mainstream 3D (2%) Total (5%) • CATIA, ENOVIA, DELMIA all affected, with a stronger impact on ENOVIA due to greater customer hesitation in decision-making on new infrastructure dec
Slide 8: Gaining Market Share
Gaining Market Share Increasing SolidWorks footprint Reaching a major milestone with SolidWorks recently crossing the millionth user mark Selling PLM solutions to help customers to increase operational efficiency Bridging customers’ business process initiatives in compliancy, eco-design and sourcing
Slide 9: Increasing SolidWorks Footprint: Shipped Seats
Increasing SolidWorks Footprint SolidWorks installed base reached 1 million seats in March 2009 This success has been enabled by: SolidWorks product competitiveness Solid Professional Channel Strong SolidWorks users community as evidenced by the attendance at SolidWorks 2009 in February (~4,500 peop
Slide 10: Increasing SolidWorks Footprint
Increasing SolidWorks Footprint Shortfall in Mainstream 3D new licenses partly offset by subscription revenue growth -2% non-IFRS software revenue growth ex FX -30% in SolidWorks’ units growth Maintaining price point - Key point for channel profitability ASP +4% ex FX Selection of wins: Loader Syste
Slide 11: Next Generation PLM Portfolio
Next Generation PLM Portfolio Imagine | Play Lifelike Experience Governance Global Sourcing Collaborative Innovation IP Lifecycle Management Unified Live Collaboration Virtual Design Realistic Digital Manufacturing Simulation & Production Systems Manufacturing Planning Shape Compliance Plant & Resou
Slide 12: Winning with CATIA for Eco-design & Increased Efficiency
Winning with CATIA for Eco-design & Increased Efficiency Context: Leading automotive company - Headquartered in the US Selected CATIA as global design and engineering standard Achievement: Implemented best-in-class practices for all powertrain programs to reduce cycle-time and improve quality “Preli
Slide 13: ENOVIA for Compliance
ENOVIA for Compliance A New Domain Customers investing in compliance solutions to: Ensure that products can be sold in worldwide markets keeping pace with local regulations Enhance brand identity with the implementation of an eco- design strategy Speed time to market by avoiding late-stage design ch
Slide 14: Winning with ENOVIA for Compliance
Winning with ENOVIA for Compliance A New Domain Context: Leading Chinese automotive company ~20,000 employees Main Achievement: Selecting ENOVIA Materials Compliance to simplify management of regulatory and material compliance in new vehicle development Dassault Systèmes – Presentation – June, 2009
Slide 15: ENOVIA for the Fashion Industry
ENOVIA for the Fashion Industry A New Industry Winning key references in the fashion industry from retail to luxury goods Providing solutions to take the right decisions in an industry with very short time-cycle (~3 weeks) Providing out-of-the box solutions enabling fast implementation with few cust
Slide 16: Winning with ENOVIA for Operational Efficiency
Winning with ENOVIA for Operational Efficiency A New Industry: Fashion Context Trent, leading apparel company headquartered in India A Tata group company, operator of Trent Westside one of India fastest growing retailers Achievements Selected V6 Apparel Accelerator for Design & Development First App
Slide 17: Agenda
Agenda 1. Q109 Business Highlights 2. Q209 & 2009 Objectives 3. Financial Information Appendix Dassault Systèmes – Presentation – June, 2009 - Page 17
Slide 18: Savings Plan for 2009
Savings Plan for 2009 Non-IFRS Operating Expenses Additional savings (€60 to €80m) to target FY09 non-IFRS operating expenses of €960-975 Savings initiatives: Revenue-related expenses (commissions, royalties, subcontracting…) Stable staffing Marketing and communication Travel MIS/IT Other expenses a
Slide 19: 2009 DS Objectives (non-IFRS)
2009 DS Objectives (non-IFRS*) €m 2Q09 2009 Revenue 295 - 310 1,260 - 1,310 Growth -10% to -5% -6% to -2% Growth ex FX -15% to -11% -9% to -5% Operating Margin 19 - 22% 24 - 26% EPS (€) 0.32 - 0.38 1.78 - 2.00 EPS Growth -30% to -17% -12% to -1% €/US$ Rate 1.40 1.38 €/JPY Rate (before hedging) 130 1
Slide 20: Agenda
Agenda 1. Q109 Business Highlights 2. Q209 & 2009 Objectives 3. Financial Information Appendix Dassault Systèmes – Presentation – June, 2009 - Page 20
Slide 21: Software Revenue Growth and Margin Evolution
Software Revenue Growth and Margin Evolution Non-IFRS* Software Revenue +1.2% -5% ex FX 300 250 269.6 272.8 200 In Millions € 150 100 50 0 1Q08 1Q09 Software Gross Margin** 94.6% 94.9% * For a reconciliation to IFRS financial information, please refer to the tables in the Appendix. ** No amortizatio
Slide 22: SW Revenue Growth
SW Revenue Growth Non-IFRS* Periodic Licenses, Maintenance and Product New licenses Revenue Development Revenue 120 250 +23.3% +15% ex FX 100 100.7 200 208.2 80 -35.8% -40% ex FX 168.9 In Millions € In Millions € 150 60 64.6 100 40 20 50 0 0 1Q08 1Q09 1Q08 1Q09 • New license growth severely impacted
Slide 23: Service Revenue and Margin Evolution
Service Revenue and Margin Evolution Non-IFRS* Services Revenue -1% -7% ex FX 40 38.3 37.9 30 In Millions € 20 10 0 1Q08 1Q09 Service Gross Margin 7.6% 0.3% • Revenue and margin impacted by deal closing delays * For a reconciliation to IFRS financial information, please refer to the tables in the Ap
Slide 24: 1Q09 Operating Expenses Evolution
1Q09 Operating Expenses Evolution Non-IFRS* Operating Expenses 1Q09 objectives / 1Q09 reported bridge 280 270 0 265-267 260 15-17 250 250 240 230 220 210 200 Objectif Q1 2009 FX impact Savings 1Q09 reported • Additional cost savings compared to objectives: • Marketing & communication • Travels • MIS
Slide 25: Operating Income Evolution
Operating Income Evolution Non-IFRS* Operating Income EPS Growth € 80 -14% 0.50 -9.8% 70.2 60 0.40 60.4 0.41 0.37 In Millions € 0.30 40 0.20 20 0.10 0 0.00 1Q08 1Q09 1Q08 1Q09 Operating Margin 22.8% 19.4% • Operating margin and EPS in line with objectives range * For a reconciliation to IFRS financi
Slide 26: Exchange Rate Evolution
Exchange Rate Evolution Estimated Breakdown of P&L by currency for 2009 Average Exchange rates US$ JPY 1Q09 1Q08 Var. Revenue 39.0% 14.5% €/US$ 1.30 1.50 -13% (As a % of Revenue) Of which was hedged - 5% €/JPY 122.0 157.7 -23% Operating Expenses 39.9% 5.4% Note: Ex FX analysis also include GBP and K
Slide 27: Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows IFRS (in millions of €) 1Q09 1Q08 Delta Net Income 28.8 57.1 -28.3 Depreciation and Amortization of PPE 5.6 5.9 -0.3 Amortization of Intangible Assets 12.1 10.6 +1.5 Other Non Cash P&L Items (1.3) (16.5) +15.2 Changes in working capital 51.1 31.4 +19.7 Net Cash P
Slide 28: Revenue by Region (IFRS)
Revenue by Region IFRS in €m Growth 1Q09 1Q08 Growth ex FX Americas 97.4 93.9 +4% -10% Europe 137.6 138.7 -1% +0% Asia 74.7 74.8 -0% -12% Total Revenue 309.7 307.4 +1% -6% Note: Ex FX data for Europe assumes that all the revenue in Europe is recognized in € and £ 1Q 2009 1Q 2008 24% 24% 32% 31% 44%
Slide 29: Revenue by Region (Non-IFRS)
Revenue by Region Non-IFRS* in €m Growth 1Q09 1Q08 Growth ex FX Americas 97.8 94.1 +4% -10% Europe 137.7 138.9 -1% +0% Asia 75.2 74.9 +0% -11% Total Revenue 310.7 307.9 +1% -6% Note: Ex FX data for Europe assumes that all the revenue in Europe is recognized in € and £ 1Q 2009 1Q 2008 24% 24% 32% 31%
Slide 30: Revenue by Product Line (IFRS)
Revenue by Product Line IFRS in €m Growth 1Q09 1Q08 Growth ex FX PLM SW 200.7 201.9 -1% -7% CATIA SW 116.5 122.4 -5% -10% ENOVIA SW 34.1 38.1 -10% -17% Other PLM SW 50.1 41.4 +21% +14% Mainstream 3D SW 71.1 67.2 +6% -2% Services 37.9 38.3 -1% -7% Total Revenue 309.7 307.4 +1% -6% 1Q 2009 1Q 2008 12%
Slide 31: Revenue by Product Line (Non-IFRS)
Revenue by Product Line Non-IFRS* in €m Growth 1Q09 1Q08 Growth ex FX PLM SW 201.7 202.4 -0% -6% CATIA SW 116.5 122.7 -5% -11% ENOVIA SW 34.1 38.3 -11% -18% Other PLM SW 51.1 41.4 +23% +16% Mainstream 3D SW 71.1 67.2 +6% -2% Services 37.9 38.3 -1% -7% Total Revenue 310.7 307.9 +1% -6% 1Q 2009 1Q 200
Slide 32: Software Recurring Revenue Evolution
Software Recurring Revenue Evolution Non-IFRS* % of Software Revenue (€m) 300 250 200 63% 76% 150 100 50 37% 24% 0 1Q08 1Q09 Non Recurring Recurring Software recurring revenue non-IFRS ex FX growth of +15% in 1Q09 NB: Recurring software revenue excludes product development * For a reconciliation to
Slide 33: Price & Units Evolution – SOLIDWORKS
Price & Units Evolution – SOLIDWORKS Number of Units ASP (€) +11.0% 15,000 6,000 5,144 -30% 4,634 10,000 4,000 +4%* 13,536 5,000 9,473 2,000 0 0 1Q08 1Q09 1Q08 1Q09 Price per seat Price per seat ex FX Reported growth * Excluding Exchange Rate Impact Note: assuming a 45% average VAR margin Dassault S
Slide 34: IFRS P&L
IFRS P&L (In millions of €, except per share data) Three months ended March 2009 2008 y/y Software revenue 271.8 269.1 +1.0% New licenses 64.6 100.7 (35.8%) Periodic licenses, maintenance and product development 207.2 168.4 +23.0% Service and other revenue 37.9 38.3 (1.0%) Total revenue 309.7 307.4
Slide 35: IFRS P&L (%)
IFRS P&L (%) Three months ended March 2009 2008 % of revenue Software revenue 87.8% 87.5% New licenses 20.9% 32.8% Periodic licenses, maintenance and product development 66.9% 54.8% Service and other revenue 12.2% 12.5% Total revenue 100.0% 100.0% Cost of Software revenue 4.5% 4.7% Cost of Service a
Slide 36: Non-IFRS P&L
Non-IFRS P&L (In millions of €, except per share data) Three months ended March 2009 2008 y/y Software revenue 272.8 269.6 +1.2% New licenses 64.6 100.7 (35.8%) Periodic licenses, maintenance and product development 208.2 168.9 +23.3% Service and other revenue 37.9 38.3 (1.0%) Total revenue 310.7 30
Slide 37: Non-IFRS P&L (%)
Non-IFRS P&L (%) Three months ended March 2009 2008 % of revenue Software revenue 87.8% 87.6% New licenses 20.8% 32.7% Periodic licenses, maintenance and product development 67.0% 54.9% Service and other revenue 12.2% 12.4% Total revenue 100.0% 100.0% Cost of Software revenue 4.5% 4.7% Cost of Servi
Slide 38: 1Q09 IFRS – non-IFRS Reconciliation: Revenue and Gross margin
1Q09 IFRS – non-IFRS Reconciliation Revenue and Gross margin (€ million, except % and per share data) Three months ended March 31, Increase (Decrease) Adjustment 2009 Adjustment 2008 Non-IFRS 2009 IFRS 2008 IFRS IFRS (1) non-IFRS (1) non-IFRS (2) TOTAL REVENUE 309.7 1.0 310.7 307.4 0.5 307.9 +0.7% +
Slide 39: 1Q09 IFRS – non-IFRS Reconciliation: Expenses and Earnings
1Q09 IFRS – non-IFRS Reconciliation Expenses and Earnings (€ million, except % and per share data) Three months ended March 31, Increase (Decrease) Adjustment 2009 Adjustment 2008 Non-IFRS 2009 IFRS 2008 IFRS IFRS (1) non-IFRS (1) non-IFRS (2) Total Operating Expenses (269.5) 19.2 (250.3) (235.1) (2
Slide 40: Financial Revenue and Other
Financial Revenue and Other IFRS €m 1Q09 1Q08 Growth Interest Income 3.7 5.8 (36% ) Expense (2.0) (1.9) Financial net Income 1.7 3.9 (56% ) Exchange Gain / Loss (1.7) (4.0) (58% ) Other Income / Loss 0.3 0.3 Total 0.3 0.2 50% Dassault Systèmes – Presentation – June, 2009 - Page 40
Slide 41: Comparing Q1 2009 with Objectives
Comparing Q1 2009 with Objectives Non-IFRS* Operating Operating Operating €m Revenue Expenses Income Margin Non-IFRS Objectives - mid range 330.0 265.7 64.3 19.5% Growth (%) +7% +12% (8%) -3.3pts Impact of Actual Currency Rates US$ impact (1.30 1.30) +0.0 +0.0 +0.0 JPY impact (125.0 122.0) +4.2
Slide 42: Estimated FX Impact on 1Q09 Operating Performance
Estimated FX Impact on 1Q09 Operating Performance Non-IFRS* Operating Operating Operating €m Revenue Expenses Income Margin Non-IFRS 310.7 250.3 60.4 19.4% Growth (%) +1% +5% (14%) -3.4pts US$ impact (1.50 1.30) -16.1 -13.3 -2.8 JPY impact (157.7 122.0) -10.2 -3.1 -7.1 Other (incl. GBP, KRW and
Slide 43: Detailed Balance Sheet
Detailed Balance Sheet IFRS End of (in millions of €) Mar-09 Dec-08 Cash and cash equivalents 902.6 794.1 Short-term investments 48.2 46.3 Accounts receivable, net 286.6 329.4 Other current assets 115.8 138.4 Total current assets 1,353.2 1,308.2 Property and equipment, net 67.9 69.3 Intangible asset
Slide 44: Trade Accounts Receivable / DSO
Trade Accounts Receivable / DSO IFRS DAYS 90 80 83 83 83 79 79 80 76 77 78 77 70 75 75 76 74 75 72 67 60 50 40 30 20 10 0 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Note: DSO is stable year on year. Dassault Systèmes – Presentation – June, 2009 - Page 44
Slide 45: Amortization of acquired intangibles
Amortization of acquired intangibles Non-IFRS Anticipated M€ 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 Quarterly DS 0.5 0.6 0.5 0.6 0.6 0.5 0.6 0.6 0.6 0.6 SOWK 2.0 2.0 2.0 1.8 1.8 1.7 1.8 2.0 0.2 0.1 Enovia DSAC 0.5 0.5 0.5 0.5 0.4 0.4 0.4 0.3 0.3 0.3 Rand - Transcat 0.4 0.4 0.3 0.3 0.3 0.3 0.2
Slide 46: Exchange rates (€/US$) and (€/JPY)
Exchange rates (€/US$) Exchange rates (€/JPY) Average % Ending % Average % Ending % Period Period Rate Growth Rate Growth Rate Growth Rate Growth 2005 1.24 0.1% 1.18 (13.4%) 2005 136.9 1.8% 138.9 (0.5%) 2006 1.26 0.9% 1.32 11.6% 2006 146.1 6.7% 156.9 13.0% 2007 1.37 9.2% 1.47 11.8% 2007 161.4 10.5%
Slide 47: Headcount
Headcount At Closing Closing Headcount – March 2009 Mar-09 Mar-08 % growth M&S + COR Ser 3,792 3,612 5.0% R&D + COR SW 3,584 3,436 4.3% 8% G&A 643 580 10.9% Total 8,020 7,628 5.1% 45% 47% Note: ~88 people from Engineous and excluding 103 from DSF M&S + COR Ser R&D + COR SW G&A Dassault Systèmes – Pr
Slide 48: Accounting elements not included in the non-IFRS 2009 Objectives
Accounting elements not included in the non-IFRS 2009 Objectives FY 2009 estimated deferred revenue write-down: about €1.4m FY 2009 estimated share-based compensation expenses (SFAS 123R): about €22m Quarterly estimated amount of amortization of acquired intangibles: about €10m for Q2 (€40m for the
Slide 49: 2009 Objectives
2009 Objectives Estimated Breakdown of P&L by currency for 2009 US$ JPY Revenue 39% 15% (As a % of Revenue) Of which was hedged - 5% Operating Expenses 40% 5% (As a % of Expenses) British Pound and Korean Won are also impacting DS P&L Dassault Systèmes – Presentation – June, 2009 - Page 49
Slide 50: Thank You!
Thank You!