- Third quarter 2018 IAS 18 non-IFRS total revenue objective of about €805 to €825 million based upon the exchange rates assumptions below, growing about 8% to 11% in constant currencies; non-IFRS operating margin of about 29% to 30%; and non-IFRS EPS of about €0.64 to €0.68, 0% to 6%, or about 1% to 8% at constant currency;
- 2018 IAS 18 non-IFRS revenue growth objective of about 9% to 10% in constant currencies at €3.41 to €3.44 billion (reflecting the principal 2018 currency exchange rate assumptions below for the US dollar and Japanese yen as well as the potential impact from additional currencies representing about 17% of the Company’s total revenue in 2017);
- 2018 IAS 18 non-IFRS operating margin of about 31.0% to 31.5%;
- 2018 IAS 18 non-IFRS EPS of about €2.95 to €3.00 representing a growth objective of about 10% to 12%, or about 15% to 17% on a constant currency basis;
- Objectives are based upon exchange rate assumptions of US$1.20 per €1.00 for the 2018 third and fourth quarters; and JPY135 per €1.00 for the 2018 third and fourth quarters before hedging.
These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.
The 2018 non-IFRS objectives, which are stated on an IAS 18 basis, set forth above do not take into account the following accounting elements and are estimated based upon the 2018 principal currency exchange rates above: deferred revenue write-downs estimated at approximately €5 million on an IAS 18 basis, share-based compensation expense, including related social charges, estimated at approximately €121 million and amortization of acquired intangibles estimated at approximately €163 million. The above objectives also do not include any impact from other operating income and expense, net principally comprised of acquisition, integration and restructuring expenses, from one-time items included in financial revenue and from one-time tax restructuring gains and losses. Finally, these estimates do not include any new stock option or share grants, or any new acquisitions or restructurings completed after July 25, 2018.
Cash Flow and Other Financial Highlights Under IAS 18 For Year-over-Year Comparisons
The Company’s net cash flow from operations for the second quarter and first half ended June 30, 2018 are identical under IFRS 15 in comparison to IAS 18 although some of the line items differ. (See pages 16 and 22 in the Appendix to this press release for further details including a reconciliation of the cash flow statement and balance sheets under IFRS 15 compared to IAS 18 for the quarter, half year and period ended June 30, 2018.)
IAS 18 net operating cash flow for the 2018 First Half increased 9% to €645.5 million compared to €592.4 million in the 2017 First Half on growth in net income and non-cash operating adjustments.
Dassault Systèmes’ net financial position totaled €2.04 billion at June 30, 2018, compared to €1.46 billion at December 31, 2017, reflecting cash, cash equivalents and short-term investments of €3.04 billion and long-term debt of €1.00 billion.
Summary of Recent Business, Technology and Customer Announcements
On June 27, 2018, EDF, Dassault Systèmes and Capgemini jointly announced the signing of a long-term partnership agreement for the digital transformation of EDF’s nuclear engineering and its ecosystem. The partnership aims to support EDF in the digitalization of its plant engineering projects with the view to strengthen plant performance and overall competitiveness of nuclear power. It represents a major step in accelerating the digital transformation of the nuclear industry as a whole. In keeping with the terms of the agreement, EDF and Dassault Systèmes are engaging in a 20-year partnership that will sustainably support industrial projects thanks to the 3DEXPERIENCE platform of Dassault Systèmes which is designed to standardize, harmonize and modernize processes and engineering methods. This interactive and evolutive platform will be used by nuclear businesses to access real-time project data. It will also be used to design the digital twins of nuclear plants whether they are at the design, construction or operational phase.
On June 14, 2018, Dassault Systèmes announced the signing of a
definitive agreement to acquire a majority stake in Centric Software, a
privately-owned industry market leader driving digital transformation
with software innovation in the fashion, apparel, luxury and retail
sectors. With this investment, Dassault Systèmes aims to accelerate
the digital transformation of companies seeking solutions for the
increasingly complex development of collections that respond to today’s
on-trend and on-demand consumers, representing a multi-billion, dollar
total addressable market. Headquartered in California’s Silicon Valley
and with offices in 13 countries, Centric Software provides product
lifecycle management software solutions to more than 600
globally-recognized brands, including ASICS, Bass Pro, Belle China,
Bestseller, Etam, Kate Spade, Loblaws, Louis Vuitton, Michael Kors,
Samsonite, Ted Baker, Tommy Hilfiger and others.