Dassault Systèmes’ Capital Markets Day: Doubling non-IFRS EPS by 2028 to €2.20 – €2.40, Announcing Pascal Daloz as Chief Executive Officer on January 1, 2024
VELIZY-VILLACOUBLAY — June 9, 2023
Dassault Systèmes’ Capital Markets Day:
Doubling non-IFRS EPS by 2028 to €2.20 – €2.40,
Announcing Pascal Daloz as Chief Executive Officer on January 1, 2024
Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) will host its 2023 Capital Markets Day at the Company’s headquarters in Vélizy-Villacoublay, France, today, June 9, 2023. The event, dedicated to investors, includes a discussion of the firm’s business, strategy and objectives for the next five years.
Commencing at 7:00 AM New York time / 1:00 PM Paris time / 12:00 PM London time, the event 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 13, 2023.
Today’s 2023 Capital Markets Day gives Dassault Systèmes the opportunity to share its long-term view with the investor community, by announcing its new strategic and financial plan for the next five years. The Company believes it is well positioned to capitalize on significant long-term opportunities to deliver on its ambitious plan to grow revenue double-digits and reach non-IFRS EPS of €2.20 – €2.40 in 2028.
The Company also announces that the appointment of currently Deputy CEO Pascal Daloz as Chief Executive Officer should become effective on January 1, 2024, at which date Bernard Charlès (currently Chairman and CEO) will continue as Chairman of the Board of Directors.
Bernard Charlès, Dassault Systèmes’ Chairman of the Board and Chief Executive Officer commented:
“For forty years, we’ve deeply contributed to transform world industry. We’ve made it possible to evolve design from drawings to 3D master models. We’ve replaced expensive physical mockups by collaborative digital mockups, thus paving the way to collaborative platforms. Inventing Product Lifecycle Management industry solutions, we created digital continuity between design, production and supply. We catalyzed the global shift from a product economy to the Experience economy with the introduction of 3DEXPERIENCE. Extending the power of virtual twin experiences from things to life, we enabled precision medicine for the benefit of all patients.
In driving these major transformations, we’ve established long-term relationships with a very loyal global customer base, whose leaders pioneer the way to virtualization for their entire industry.
In fact, we are just getting started; this heritage we built is a strong lever for our future growth. As we look to our next horizon, 2040, we believe fostering the connection between the Experience economy and the sustainable economy requires going far beyond a transformation. A true metamorphosis is needed that can be achieved by learning from life.
We have laid a strong foundation for realizing this vision by evolving our leadership and governance. We measure the distance travelled during the past four decades, developing Dassault Systèmes from a startup to a global player, and transforming many industries, from Aerospace to the future of mobility and now Life Sciences & Healthcare practices. Our journey together has been an incredibly enjoyable time and we are ready to write the next chapter of the Company’s history by completing our governance transformation. Building on the tandem approach which proved successful with Charles Edelstenne, I will continue as Chairman to collaborate closely with the Company’s new CEO, Pascal Daloz, so that we can keep building Dassault Systèmes’ legacy and fulfill its purpose to provide businesses and people with 3DEXPERIENCE universes to imagine sustainable innovations capable of harmonizing product, nature and life.”
Pascal Daloz, Dassault Systèmes’ Deputy Chief Executive Officer & Chief Operating Officer, commented:
“Looking to our next horizon, 2040, virtual twin experiences will be a catalyst for new ways of collaborating at scale, capitalizing knowledge and know-how based on “Experience as a Service”. Sustainability will be paramount, furthering the adoption of our next generation PLM. With the combination of modelling and simulation and AI, innovation will accelerate at an exponential pace. These secular trends will have a profound impact on industry and society. As a scientific company, we are uniquely well-positioned to expand the world of virtual twin experiences so that customers can make the industry of the 21st century sustainable.
Dassault Systèmes started with applications, transformed into a platform company, and will begin its next chapter as the Virtual Twin Experience Company, providing “Experience as a Service”. As we enable the complete metamorphosis of the economy, our clients’ business models and our own business model, we will expand our value propositions, and audiences – reaching consumers, patients and citizens. Dassault Systèmes will increase its addressable markets from €100 billion today to €1 trillion by 2040.
Looking to the future, our purpose – to harmonize product nature and life – will continue to guide the creation of human-centered industry solutions. We are uniquely positioned to be the catalyst and enabler of a more sustainable industry and society. I could not be more excited about the future and what we can achieve together.”
Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:
“Dassault Systèmes’ strong business model and balance sheet positions us well to leverage the considerable opportunities across our large, addressable end-markets, driving sustainable, double-digit, revenue growth, well into the future. We will continue to invest, enhancing the strong fundamentals of our business, driven by an increasing share of predictable revenue and an accelerating 3DEXPERIENCE and Cloud adoption.
We are confident in our ability to build on our track record of consistent execution and financial performance, increasing profitability and reaching our long-term non-IFRS EPS objective of €2.20 – €2.40 in 2028. Our high cash conversion rate and disciplined capital allocation strategy create ample financial flexibility to advance our strategic priorities through organic growth as well as acquisitions.”
Investor Relations Events
- Second Quarter 2023 Earnings Release: July 25, 2023
- Third Quarter 2023 Earnings Release: October 25, 2023
- Fourth Quarter 2023 Earnings Release: February 1, 2024
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 2022 Universal Registration Document (‘Document d’enregistrement universel’) filed with the AMF (French Financial Markets Authority) on March 17, 2023, available on the Group’s website www.3ds.com.
In particular, please refer to the risk factor “Uncertain Global Economic Environment” in section 184.108.40.206 of the 2022 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, energy 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;
uncertainties regarding the extent and duration of inflation could adversely affect the financial position 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 both for the health and safety of Dassault Systèmes’ employees and for the Company. It could also adversely impact the financial situation or financing and supply 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.”
In preparing such forward-looking statements, the Group has in particular assumed an average US dollar to euro exchange rate of US$1.10 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY140.0 to €1.00, before hedging for the second quarter 2023. The Group has in particular assumed an average US dollar to euro exchange rate of US$1.09 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY140.5 to €1.00, before hedging for the full year 2023. However, currency values fluctuate, and the Group’s results 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 2022 Universal Registration Document filed with the AMF on March 17, 2023.
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 virtual environments to imagine sustainable innovations. By creating virtual twin experiences of the real world with our 3DEXPERIENCE platform and applications, our customers can redefine the creation, production and life-cycle-management processes of their offer and thus have a meaningful impact to make the world more sustainable. The beauty of the Experience Economy is that it is a human-centered economy for the benefit of all – consumers, patients and citizens. Dassault Systèmes brings value to more than 300,000 customers of all sizes, in all industries, in more than 150 countries. For more information, visit www.3ds.com
Dassault Systèmes Investor Relations Team FTI Consulting
Béatrix Martinez: Arnaud de Cheffontaines: +33 1 47 03 69 48
+33 1 61 62 40 73 / 69 24 Jamie Ricketts : +44 20 3727 1600
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Dassault Systèmes Press Contacts
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- Dassault Systèmes’ Capital Markets Day: Doubling non-IFRS EPS by 2028 to €2.20 – €2.40, Announcing Pascal Daloz as Chief Executive Officer on January 1, 2024