Multi-Year Growth Plan

Transcription

1 Multi-Year Growth Plan Thibault DE TERSANT Senior EVP, CFO 1

2 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 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 Company s current outlook for 2014 takes into consideration, among other things, an uncertain macroeconomic outlook, but if global economic and business conditions further deteriorate, the Company s business results may not develop as currently anticipated and may drop below their earlier levels for an extended period of time. Furthermore, due to factors affecting sales of the Company s products and services as described above, 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 Company has in particular assumed an average US dollar to euro exchange rate of US$1.40 per 1.00 for the second quarter and US$1.37 per 1.00 for the full year as well as an average Japanese yen to euro exchange rate of JPY140 to 1.00 for the 2014 second quarter and full year; with respect to its 2019 EPS objective the Company has assumed an average US dollar to euro exchange rate of US$1.37, an average Japanese yen to euro exchange rate of JPY140 to 1.00 as well as a continuation of current exchange rates for other major currencies in which the Company transacts business; however, currency values fluctuate, and the Company s results of operations may be significantly affected by changes in exchange rates. The Company 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 2013 Document de Référence, filed with the AMF on March 28, 2014, and also available on the Company s website 2

3 Non-IFRS Information Readers are cautioned that the non-ifrs 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 as a substitute for IFRS measurements. Also, the Company 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 Company s annual report for the year ended December 31, 2013 included in the Company s 2013 Document de Référence filed with the AMF on March 28, When the Company believes it would be helpful for understanding trends in its business, the Company provides percentage increases or decreases in its revenue (in both IFRS as well as non-ifrs) to eliminate the effect of changes in currency values, particularly the U.S. dollar and the Japanese yen, relative to the euro. When information is expressed herein "in constant currencies", the results of the "prior" period have first been recalculated using the average exchange rates in the current period, and then compared with the results of the comparable period in the current period. With respect to its EPS objective, revenue and earnings per share calculations in constant currencies are based upon taking the estimated results for 2014 and recalculating them using the key exchange rate assumptions initially outlined when the Company established its growth plan. 3

4 Agenda 1 5-Year Look Back 2 Growth Strategy Plan 4

5 : Software Revenue Growth non-ifrs in m 2,000 1, * DS Organic Software Revenue ex FX: +9% 5

6 : Outpacing Competitors & Peers Growth* DS SAP ADSK PTC * Total Revenue in USD

7 DS Leader of the PLM Market Market Share (PLM Software) 35% 30% 28% 30% DS: clear market leader with ~30% market share 25% 20% 17% 19% DS: +2 pts gain in market share from 2011 to 2013 Software PLM market sized at $10.9bn 15% 10% 11% 10% 10% 9% Software PLM market including CAD, Product Data Management, Simulation, Digital Manufacturing 5% 0% DS Siemens* PTC Autodesk Source Dassault Systèmes and industry analysts 7 * Including LMS acquisition

8 Now Addressing: $26 bn $ 20 bn $32 bn Now Addressing $26bn Market (Baseline) 3DEXPERIENCE ~$6bn Service ~$6bn 3DEXPERIENCE Software ~$9 bn Scientific Innovation Lifecycle Management, Manufacturing Execution System, Digital Marketing, Mining, System Engineering, Civil Engineering PLM Software ~$11bn CAD, Product Data Management, Simulation, Digital Manufacturing 8

9 : Operating Margin Evolution non-ifrs 31.6% 31.5% 30.0% 28.6% 30.4% 25.0% 25.0% 20.0%

10 2014 Guidance Consistent with Plan Revenue EPS m 3,000 2,500 2,000 1,500 1,000 1,253 2,280-2, plan rates* 2010 plan rates* 2,300-2, More than 2X Initial Plan 2014 Guidance Initial Plan 2014 Guidance USD 1.25* 1.37 JPY 115* * Key exchange rate assumptions initially outlined when the Company established its growth plan On track to deliver EPS CAGR of ~13% (~15% excluding FX impact) 10

11 Agenda 1 5-Year Look Back 2 Growth Strategy Plan 11

12 3DEXPERIENCE Platform: A Revolution Multi-discipline approach Business platform searching, integrating and dash boarding all relevant data Breakthrough in ease of collaboration Simple provisioning of DS applications Powering Industry Solution Experiences 12

13 : Multiple Growth Drivers to Support Revenue Growth 1. Users Expansion in Core Industries 2. Adoption of V6 Architecture within the Installed Base 3. Diversification in New Industries 4. Diversification in High Growth Countries 5. Cloud + Mobile 6. Acquisitions 13

14 Users Expansion in Core Industries* People from all disciplines to work together: expand to new collaborative professional users and to digital marketing «3D» EXPERIENCE everything: expand with 2D to 3D migration and with systems engineering Bring intelligence to big data: expand with Data as a Service, predictive analytics and search-based applications *Aerospace & Defense, Industrial Equipment, Transport & Mobility Improve real world thru experience: expand to shop floor workers & quality engineers - expand simulation users 14

15 : Multiple Growth Drivers to Support Revenue Growth 1. Users Expansion in Core Industries 2. Adoption of V6 Architecture within the Installed Base 3. Diversification in New Industries 4. Diversification in High Growth Countries 5. Cloud + Mobile 6. Acquisitions 15

16 Adoption of V6 Architecture within the Installed Base Benefiting from migration potential in DS installed base 10% license fee upgrade Price of Maintenance up 10% with improved service Maintenance rate increase applied to 10% license fee upgrade And expanding disciplines coverage and collaboration DS estimated revenue ( m) 5,200 4,200 3,200 2, E 2015 E 2016 E 2017 E 2018 E 2019 E Contribution to DS revenue: ~2 pts of growth 16

17 : Multiple Growth Drivers to Support Revenue Growth 1. Users Expansion in Core Industries 2. Adoption of V6 Architecture within the Installed Base 3. Diversification in New Industries 4. Diversification in High Growth Countries 5. Cloud + Mobile 6. Acquisitions 17

18 Total Addressable Market DS Estimates Software only ($bn) New Industries* Addressable Market 12 New Industries Addressable Market E 2018 E * Architecture Engineering & Construction, Consumer Goods & Retail, Consumer Packaged Goods & Retail, Energy Process & Utilities, Finance Business Services, High-Tech, Life Sciences, Natural Resources, Marine & Offshore 18

19 % New Industries* in DS Software Revenue E 20% 25% >30% * Architecture Engineering & Construction, Consumer Goods & Retail, Consumer Packaged Goods & Retail, Energy Process & Utilities, Finance Business Services, High-Tech, Life Sciences, Natural Resources, Marine & Offshore 19

20 : Multiple Growth Drivers to Support Revenue Growth 1. Users Expansion in Core Industries 2. Adoption of V6 Architecture within the Installed Base 3. Diversification in New Industries 4. Diversification in High Growth Countries 5. Cloud + Mobile 6. Acquisitions 20

21 High Growth Countries* Diversification % High Growth Countries in 2013 Total Revenue 12% Total CAGR : above ~15 % ex FX with potential going forward driven by new product development in those countries * China, India, Korea, LATAM, Russia 21

22 : Multiple Growth Drivers to Support Revenue Growth 1. Users Expansion in Core Industries 2. Adoption of V6 Architecture within the Installed Base 3. Diversification in New Industries 4. Diversification in High Growth Countries 5. Cloud + Mobile 6. Acquisitions 22

23 Expanding Addressable Market with Cloud + Mobile Accessing with Cloud+ Mobile smaller enterprises & new industries and expanding addressable market by ~15% Half of new business with Cloud is expected to be incremental to perpetual license business 23

24 Rentals: a Positive Shift Longer-Term Taking an Example: Upfront: 100 Yearly Maintenance Fee: 20 Yearly Rental Fee: (100+3x20) / 3 * Cloud subscription embeds 10% additional fee to cover Middleware, Hardware & Administration Year 1 Year 2 Year 3 Year 4 Year 5 Purchase Software Revenue Flows Rental Software Revenue Flows Cloud Subscription * Break-even after 3 years

25 Cloud Contributing Positively to Revenue Total Cloud Revenue ( m) Negative Impact on Revenue ( m) Assuming: ~50% cannibalization ~10% churn for cloud Positive contribution to revenue (net contribution to revenue: ~1 point) 2014 E 2015 E 2016 E 2017 E 2018 E 2019 E 25

26 : Multiple Growth Drivers to Support Revenue Growth 1. Users Expansion in Core Industries 2. Adoption of V6 Architecture within the Installed Base 3. Diversification in New Industries 4. Diversification in High Growth Countries 5. Cloud + Mobile 6. Acquisitions 26

27 Acquisitions Supporting Addressable Market Expansion 27

28 Main Acquisitions since 2009* * Excluding IBM PLM acquisition related to go-to market strategy and very small technology acquisitions 28

29 : Multiple Growth Drivers to Support Revenue Growth Users Expansion in Core Industries Adoption of V6 Architecture within the Installed Base Diversification in New Industries Diversification in High Growth Countries Cloud + Mobile Acquisitions 29

30 : Revenue Growth in m 2,000 Keeping similar path of revenue growth from 2014 to , * Software Revenue

31 Agenda 1 5-Year Look Back 2 Growth Strategy Plan 31

32 : Dassault Systèmes to Double EPS* non-ifrs EPS objective of: Guidance 2019 *Assuming the following currency rates: - /US$: /JPY:

33 33