Dassault Updates Multi-year Growth Plan, Targets 2020-24 Non-IFRS EPS CAGR of About 13% to €6 Per Share
VÉLIZY-VILLACOUBLAY, France, Nov 19, 2020 – Dassault Systèmes (Euronext Paris: #13065, DSY.PA) in conjunction with its 2020 Capital Markets Day held on November 17th, 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 Replay Information
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, 2021
- First Quarter 2021 Earnings Release: April 28, 2021
- Second Quarter 2021 Earnings Release: July 27, 2021
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