Dassault Systèmes Updates Multi-year Growth Plan, Targets 2020-2024
Non-IFRS EPS CAGR of About 13% to €6.00
Dassault Systèmes Updates Multi-year
Growth Plan, Targets 2020-2024 Non-IFRS EPS CAGR
of About 13% to €6.00
VÉLIZY-VILLACOUBLAY, France — November
17, 2020 — Dassault Systèmes (Euronext Paris: #13065,
DSY.PA) in conjunction with its 2020 Capital Markets Day being held
today, is providing an update to its 2019-2023 Multi-year growth
plan, initially announced in June of 2018.
The Capital Markets Day, dedicated to analysts
and investors, is being hosted online and includes presentations by
the Executive Management and customers. The recorded sessions will
be available for replay following completion of the Capital Markets
Day by accessing https://investor.3ds.com/.
Bernard Charlès, Dassault Systèmes’ Vice
Chairman and Chief Executive Officer commented, “As we
look to the next five years I believe we are positioned to
accelerate Dassault Systèmes’ contribution to industries, the
environment and to human health leveraging industry platformization
and data intelligence. The Manufacturing sector is accelerating its
sustainable innovation initiatives thus creating demand for data
modeling and simulation, a sweet spot for Dassault Systèmes. For
example, we are working with clients to redefine the future of
Mobility, enabling an end-to-end perspective of the customer
experience from conception to engineering to new mobility services.
For consumer-centric clients our industry solutions are critical to
enable them to be the first to market responding to changing
consumer behaviors' across many aspects of their lives. In the Life
Sciences & Healthcare sector, we are working with industry
participants to move toward a patient-centric perspective. Finally,
we are advancing initiatives with multiple industries, government
entities and new emerging disruptors to reinvent Infrastructure
& Cities to create a sustainable future.
“More broadly, at the outset of this year, we
set a multi-decade ambition for Dassault Systèmes – challenging
ourselves to help enable the virtual twin experience of Humans.
Adding to our current capabilities served by our three sectors
today, we believe this represents a potential available market
(PAM) of $100 billion that we are moving towards with our Research
& Development initiatives.”
Pascal Daloz, Dassault Systèmes’ Chief
Operating Officer& Chief Financial Officer, commented,
“We have made important financial, market and operational progress
since our last Capital Markets Day in mid-2018. We achieved our
five-year doubling of our non-IFRS earnings per share in 2019,
drove a software TAM expansion to $41 billion from $28 billion,
reached our goal of a 50-50 mix contribution between our Core and
Diversification industries and transitioned to our next generation
leadership team. Dassault Systèmes now addresses three major
sectors of the global economy, with the leading market position in
two of them – Manufacturing Industries and Life Sciences &
Healthcare.
“Looking forward, we are positioned to achieve
another doubling of our non-IFRS EPS to about €6 per share in 2024,
driven by 3DEXPERIENCE adoption by our installed base and new
customers.
“In summary, we believe the market opportunities
for Dassault Systèmes are significant. Our underlying five-year
plan includes non-IFRS revenue growth of about 10% in constant
currency, well supported by double-digit non-IFRS revenue growth in
Life Sciences & Healthcare as well as Infrastructure &
Cities, with non-IFRS operating margin expansion of about 290 basis
points, leading to a five-year non-IFRS EPS CAGR of about 13%. Our
revenue initiatives will likely drive our Cloud footprint up
significantly, representing about €2 billion in potential cloud
software non-IFRS revenue by 2025. We also see significant growth
in operating cash flow, with an average annual operating cash flow
of about €1.5 billion over this 2020-2024 timeframe, enabling us to
maintain significant financial flexibility to advance our strategic
priorities.”
Capital Markets Day Timing and Replay
Information
Today, Tuesday, November 17, 2020, Dassault
Systèmes is hosting a webcasted presentation beginning at 8:00 AM
New York time / 2:00 PM Paris time / 1:00 PM London time, with a
duration of about 3 ½ hours.
The on demand webcast of the event will be
available from November 20, 2020 on Dassault Systèmes’ investor
website at https://investor.3ds.com.
Key Investor Relations
Events
Fourth Quarter 2020 Earnings Release: February
4, 2021First Quarter 2021 Earnings Release: April 28, 2021Second
Quarter 2021 Earnings Release: July 27, 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 EPS performance objective or financial 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 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, as
updated in the Rapport Financier Semestriel au 30 juin 2020 (2020
Half-Year Financial Report) filed with the AMF on July 24, 2020,
both available on the Group’s website www.3ds.com.
In particular, please refer to the risk factor
“Uncertain Global Economic Environment” in section 1.7.1.1 of the
2019 Document d'enregistrement universel (Annual Report), 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 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 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 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 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.
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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 |
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United States and Canada |
Michele Katz |
michele.katz@3ds.com |
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FTI Consulting |
Jamie RickettsArnaud de Cheffontaines |
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+44.20.3727.1000+33.1.47.03.69.48 |
Dassault Systèmes Press
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- Dassault Systèmes Updates Multi-year Growth Plan, Targets
2020-2024 Non-IFRS EPS CAGR of About 13% to €6.00
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