Press Release

VELIZY-VILLACOUBLAY, France — February 2, 2023

Dassault Systèmes: Strong FY 2022, Q4 Revenue and EPS Up Double-Digits

Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA), today announces IFRS unaudited financial results for the fourth quarter and fiscal year ended December 31, 2022. The Group’s Board of Directors approved these results on February 1, 2023. This press release also includes financial information on a non-IFRS basis and reconciliations with IFRS figures in the Appendix. The audited financial statements for the fiscal year ended on December 31, 2022 will be published in March in Dassault Systèmes’ Universal Registration Document; the audit procedures are in progress.

Summary Highlights  

(unaudited, IFRS & non-IFRS unless otherwise noted,
all revenue growth rates in constant currencies)

• 4Q22 IFRS diluted EPS increased 39% to €0.25 as reported. Non-IFRS diluted EPS grew 20% to €0.34 as reported.
• 4Q22 Revenue increased 10% with software revenue up 9%. Recurring revenue rose 11%, driven by strong subscription growth of 18% and License and other software revenue grew 5%.
• 4Q22 3DEXPERIENCE software revenue rose 24%. Cloud software revenue increased 22%.
• FY22 IFRS EPS grew 20% to €0.70 as reported. Non-IFRS EPS increased 19% to €1.13, as reported with revenue rising 9%.
• FY22 Operating cash flow of €1.53 billion, keeping us on track to achieve deleveraging well ahead of schedule.
• FY2023 non-IFRS objectives: diluted EPS reaching €1.18-€1.20, on the trajectory to achieve our long-term financial plan, well in advance. Revenue growth of 8%-9%.

Bernard Charlès, Dassault Systèmes’ Chairman of the Board and Chief Executive Officer commented:

“The world is changing at an unprecedented pace. Our valued customers and partners are turning to Dassault Systèmes to imagine new frontiers, establish new ambitions and create new operating models in a world where sustainability is paramount and the importance of sovereignty has been elevated.

A complete metamorphosis - a radical shift in our perspective on the world - is required. This can only be achieved by leveraging the virtual worlds to improve the real world. Our science based Virtual Twin Experiences rely on a range of multiscale disciplines - biology, chemistry, materials science, mechanics and electromagnetism - allowing our AI engines to transform their gigantic, unorganized data, into structured knowledge and know-how. These virtual assets are becoming the enabler of new products and services to the end consumer, which is what customers are expecting: not just the virtualization of the product, but the virtualization of the product in the context of its usage – this is what “Experience” is about.

The growing adoption of Virtual Twin Experiences is mission critical for our clients, across all sectors, to address their customers' needs with differentiated experiences and to re-imagine their portfolio for sustainability. We have transformed the processes of creation and production with a holistic approach to circularity, incorporating frugality and end of life into design. We enable companies, and society at large, to measure and balance what it takes and what it gives back to the planet; the eco-bill. IFWE leverage the power of science to harmonize product, nature and life - our raison d'être - together we can have a meaningful impact.

The governance evolution, crafted over years to support the company's long-term strategy, as communicated in April 2022, is now in effect. As Charles Edelstenne, our founder, takes the role of Honorary Chairman and remains a Director, I look forward to continuing our collaboration of forty years. I will replicate this successful tandem approach with Pascal Daloz. Pascal and I share the same common conviction: the power of science-based virtual universes drives value and progress for all stakeholders, be they companies, patients, consumers or citizens. Together, we will continue to advance the company's legacy and mission.”

Dassault Systèmes’ Deputy Chief Executive Officer Commentary

Pascal Daloz, Dassault Systèmes’ Deputy Chief Executive Officer, commented:

“I'm thrilled to take on the role of Deputy Chief Executive Officer. Bernard and I have enjoyed a successful collaboration for twenty years and I'm looking forward to the next twenty. Over the past two decades, our clients have also been a vital part of the journey. In my new role, I remain deeply committed to extending trusted partnerships, helping clients overcome challenges and realize their ambitions with game changing innovation.

In Manufacturing Industries, the shift to sustainable experiences is impacting all subsectors from new mobility to clean energy. We are leading the change, as we've done for half a century. The Life Sciences industry is transforming rapidly to accelerate drug development, improve efficiency, and scale precision medicine. With a trusted, scalable platform, only Dassault Systèmes is capable of connecting the dots across research, discovery, manufacturing and commercialization. In the Mainstream Market, empowering businesses of all sizes affords significant opportunities.  

In 2022, we unveiled the 3DEXPERIENCE IFWE Loop, representing the company's unique ability to seamlessly link value creation with value experienced. This strategic paradigm shift creates a multiplier effect, allowing us to expand value proposals as well as the audience. As we connect products and usage, we will connect clients to their own customers, fostering the creation of a significant, digital patrimony - a critical element of competitiveness. Reaching consumers, patients and citizens is the next frontier.

As I look to our next horizon, 2040, we have the right team in place; we have laid a strong foundation to capitalize on our market leadership and the many significant opportunities before us. We achieved our deleveraging target well ahead of schedule; we have a strong balance sheet, enabling us to invest strategically to support sustainable growth.”

Financial Summary

In millions of Euros, except per share data and percentages		IFRS					IFRS
		Q4 2022	Q4 2021	Change	Change in constant currencies		YTD 2022	YTD 2021	Change	Change in constant currencies
Total Revenue		1,583.9	1,367.8	16%	10%		5,665.3	4,860.1	17%	9%
Software Revenue		1,428.6	1,239.5	15%	9%		5,114.0	4,402.6	16%	9%
Operating Margin		24.7%	23.3%	+1.5pt			23.0%	21.0%	+2.0pts
Diluted EPS *		0.25	0.18	39%			0.70	0.58	20%

In millions of Euros, except per share data and percentages		Non-IFRS					Non-IFRS
		Q4 2022	Q4 2021	Change	Change in constant currencies		YTD 2022	YTD 2021	Change	Change in constant currencies
Total Revenue		1,583.9	1,367.9	16%	10%		5,665.5	4,861.7	17%	9%
Software Revenue		1,428.6	1,239.6	15%	9%		5,114.3	4,404.0	16%	9%
Operating Margin		34.9%	36.8%	(1.9)pt			33.4%	34.3%	(0.9)pt
Diluted EPS *		0.34	0.29	20%	13%		1.13	0.95	19%	11%

* 2021 and 2022 figures have been presented in order to reflect the five-for-one share split on Dassault Systèmes’ share effected on July 7, 2021.

Fourth Quarter 2022 Versus 2021 Financial Comparisons

(unaudited, all revenue growth rates in constant currencies)

• Total Revenue: Total revenue grew 10%, IFRS and non-IFRS, to €1.58 billion. IFRS and non-IFRS software revenue increased 9%, to €1.43 billion. IFRS and non-IFRS subscription & support revenue rose 11%; recurring revenue represented 73% of total software revenue. Licenses and other software revenue increased 5%, IFRS and non-IFRS, to €378.7 million. Services revenue increased 15%, IFRS and non-IFRS.
  
  
• Software Revenue by Geography (IFRS and non-IFRS): In the Americas, software revenue growth accelerated to 13% to represent 41% of software revenue, driven by strong performance in Life Sciences and Industrial Innovation. In Europe, software revenue increased 6% to 37% of software revenue. The region benefited from strength in western and southern Europe and Transportation & Mobility and Aerospace, from an industry perspective. Asia Pacific rose 7% this quarter to 22% of software revenue, driven by strong, double-digit growth in India and Korea. China grew low to mid-single-digits as Covid-19 shutdowns continued to weigh on activity.
  
  
• Software Revenue by Product Line:
  
  
  • Industrial Innovation IFRS and non-IFRS software revenue rose 11% to €778.9 million, representing 55% of software revenue. CATIA continued to perform well, up mid-single-digits, with excellent results in Cyber-Systems, again this quarter. ENOVIA delivered extremely strong software revenue growth and SIMULIA was also up double-digits during the quarter.
    
    
  • Life Sciences software revenue rose 12% on both an IFRS and non-IFRS basis, to €302.5 million, to account for 21% of software revenue. MEDIDATA continued to deliver strong performance, driven by broad-based growth across product lines and end-markets. BIOVIA grew mid-single-digits, benefiting from significant customer adoption in life sciences as well as in materials science.
    
    
  • Mainstream Innovation software revenue was €347.3 million on an IFRS and non-IFRS basis, an increase of 3%, and representing 24% of software revenue. China’s shutdowns remained a headwind, affecting Mainstream Innovation results, during the period.
    
    
• Software Revenue by Industries: Transportation & Mobility, Life Sciences & Healthcare, Aerospace and Marine & Offshore displayed some of the strongest performance during the quarter.
  
  
• Key Strategic Drivers (IFRS and non-IFRS): 3DEXPERIENCE revenue increased 24% and represented 37% of software revenue. Cloud software revenue grew 22% and represented 22% of software revenue. 3DEXPERIENCE and cloud afford opportunities to deliver incremental value to our customers. As clients embrace a platform approach via the cloud, they are adding new users and new usages, capitalizing on the benefits of adopting all of Dassault Systèmes’ domains.
  
  
• Operating Income and Margin: IFRS operating income increased 23% as reported. Non-IFRS operating income rose 10% to € 552.1 million, as reported. The IFRS operating margin is 24.7% compared to 23.3% in the fourth quarter of 2021. The non-IFRS operating margin is 34.9%, versus 36.8% in the comparable period last year. In the fourth quarter, we completed our investment plan, announced at the onset of 2022 in support of our long-term growth objectives.
  
  
• Earnings per Share: IFRS diluted EPS increased 39% to €0.25. Non-IFRS diluted EPS grew 20% to €0.34 as reported.
  
  

Fiscal 2022 Versus 2021 Financial Comparisons

(unaudited, all revenue growth rates in constant currencies)

• Total Revenue: Total revenue grew 9% IFRS and non-IFRS to € 5.67 billion. IFRS and non-IFRS software revenue increased 9% to €5.11 billion. IFRS and non-IFRS subscription and support revenue rose 10% to €4.01 billion; recurring revenue represented 78% of total software revenue. Licenses and other software revenue increased 6% in IFRS and non-IFRS to €1.11 billion. Services revenue rose 14% on an IFRS and non-IFRS basis.
  
  
• Software Revenue by Geography (IFRS and non-IFRS): The Americas grew 9% and represented 40% of software revenue. Europe rose 8% to 36% of software revenue. The Asia Pacific region increased 10%, representing 24% of software revenue.
  
  
• Software Revenue by Product Line:
  
  
  • Industrial Innovation software revenue rose 8% IFRS and non-IFRS to €2.72 billion and represented 53% of software revenue. In fiscal 2022, CATIA and ENOVIA exhibited some of the strongest performance.
    
    
  • Life Sciences software revenue increased 13% IFRS and non-IFRS to €1.13 billion, representing 22% of software revenue. MEDIDATA delivered excellent performance throughout 2022.
    
    
  • Mainstream Innovation software revenue increased 7% on an IFRS and non-IFRS basis, to €1.27 billion. Mainstream Innovation represented 25% of software revenue.
    
    
• Software Revenue by Industries: Life Sciences & Healthcare, Transportation & Mobility, Aerospace displayed some of the strongest performance.
  
  
• Key Strategic Drivers (IFRS and non-IFRS): 3DEXPERIENCE revenue increased 22% and represented 33% of software revenue. Cloud software revenue grew 22% and represented 23% of software revenue.
  
  
• Operating Income and Margin: IFRS operating income increased 28%, as reported. Non-IFRS operating income rose 14% to €1.892 billion, as reported. IFRS operating margin was 23.0% compared to 21.0% for the same period in 2021. The non-IFRS operating margin was 33.4% versus 34.3% in the comparable period last year. Early in 2022, we communicated a plan to accelerate investing this year, to catch up from lower than planned investment levels during the pandemic. We achieved our goals, including expanding the team; we will capitalize on these investments in the coming years.
  
  
• Earnings per Share: IFRS diluted earnings per share increased 20% to €0.70. Non-IFRS diluted EPS grew 19% to € 1.13, as reported.
  
  
• Cash Flow from Operations (IFRS): Cash flow from operations totaled €1.525 billion, a decrease of 5%, relative to the same period last year. This is a result of an increase in accounts receivables on relatively high invoicing in the fourth quarter and of tax cash flow differences resulting from the mandatory capitalization of R&D expenses for tax purposes in the USA. Cash from operations was principally used for debt repayment, net of proceeds for €886 million, treasury shares buy-back and employee shareholding plan net of proceeds from stock options exercise for €379 million, and cash dividend payments for €224 million.   
  
  
• Balance Sheet (IFRS): Dassault Systèmes’ net financial debt at December 31, 2022 decreased by €662 million to €227 million, compared to €889 million at December 31, 2021, reflecting cash, cash equivalents and short-term investments of €2.769 billion and debt related to borrowings of €2.996 billion at December 31, 2022. Dassault Systèmes’ adjusted net debt /IFRS EBITDAO ratio stood at 0.4x at December 31, 2022, compared to 0.8x at December 31, 2021, based on an adjusted net debt including the lease liabilities as reported under IFRS 16 of €581 million and an IFRS EBITDAO of €2,080 million.
  
  

Dassault Systèmes’ Chief Financial Officer Commentary

(revenue growth rates in constant currencies, data on a non-IFRS basis, cash flow IFRS)

Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:

“We had an outstanding fourth quarter with total revenue growth of 10%, and relative to a strong, 2021 comparison base. We delivered very good results for the full year, well in line with our revenue objectives, demonstrating the resiliency of our model, highlighted by 22% growth in cloud and 3DEXPERIENCE revenue for the year.

2022 was a year of investment to support our long-term growth, as we always said. At the same time, we continued to focus on growing earnings per share, up 19% for the year as reported to €1.13. We will capitalize on these investments in 2023 and beyond.

As we continue to execute against the strong business drivers we have in place, for 2023, we are targeting revenue growth of 8% to 9% in constant currencies. Our objective for diluted earnings per share is €1.18 to €1.20. We are on the trajectory to reach our 2024 EPS objective well in advance. Therefore, we will be hosting a Capital Markets Day, this coming June, at our headquarters in Paris.”

Financial Objectives for 2023

Dassault Systèmes’ first quarter and 2023 financial objectives presented below are given on a non-IFRS basis and reflect the principal 2023 currency exchange rate assumptions for the US dollar and Japanese yen as well as the potential impact from additional non-Euro currencies:

			Q1 2023	FY 2023
	Total Revenue (billion)		€1.418 - €1.443	€5.925 - €5.975
	Growth		7 - 9%	~5%
	Growth ex FX		7 - 9%	8 - 9%
	Software revenue growth *		7 - 9%	8 - 9%
		Of which licenses and other software revenue growth *	(7) – (2)%	2 - 5%
		Of which recurring revenue growth *	10 - 11%	10 - 11%
	Services revenue growth *		11 - 12%	5 - 7%
	Operating Margin		30.7% - 31.3%	32.3% - 32.6%
	EPS Diluted		€0.27 - €0.28	€1.18 - €1.20
	Growth		(1) - 2%	4 - 6%
	Growth ex FX		0 - 3%	8 - 10%
	US dollar		$1.10 per Euro	$1.10 per Euro
	Japanese yen (before hedging)		JPY 140.0 per Euro	JPY 140.0 per Euro
	* Growth in Constant Currencies

These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.

The 2023 non-IFRS financial objectives set forth above do not take into account the following accounting elements below and are estimated based upon the 2023 principal currency exchange rates above: no significant contract liabilities write-downs; share-based compensation expenses, including related social charges, estimated at approximately €124 million (these estimates do not include any new stock option or share grants issued after December 31, 2022); amortization of acquired intangibles and of tangibles reevaluation, estimated at approximately €373 million, largely impacted by the acquisition of Medidata; and lease incentives of acquired companies at approximately €3 million.

The above objectives also do not include any impact from other operating income and expenses, net principally comprised of acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; from one-time items included in financial revenue; from one-time tax effects; and from the income tax effects of these non-IFRS adjustments. Finally, these estimates do not include any new acquisitions or restructuring completed after December 31, 2022.

ESG Announcements

• February 1, 2023: S&P Global Ratings assigned Dassault Systèmes an Environmental, Social and Governance (ESG) Evaluation of 84, recognizing the value of the Group’s sustainability strategy and commitment. This score results from a strong ESG Profile score of 75 and a ‘Strong’ Preparedness assessment, contributing to a 9-point uplift. This assessment positions Dassault Systèmes well above average evaluations delivered globally by S&P.
  • Dassault Systèmes receives a ‘Strong’ score in Greenhouse Gas emissions management, highlighting its ambition in emission reduction and its unique positioning to provide sustainable solutions to its customers: “3DS’s strong management of GHG emissions is supported by its well-defined action plan and targets to reduce its direct and indirect carbon footprint, while its solutions also contribute to customers’ decarbonization efforts”, according to the S&P report.
  • The Social Profile of 3DS includes a ‘Leading’ assessment for Customer engagement recognizing “3DS’s unique platform-based offering, ability to enter new markets, and strong cybersecurity track record [which] place the company as a leader with regards to customer engagement practices”, adds S&P.
  • 3DS governance practices are considered in line with the very high standards of French listed companies with a “stable and advanced governance structure”
  • The ‘Strong’ preparedness assessment is a testimony of the ability of the Group and its Board of Directors to manage and seize opportunities from potential disruptions with its science-based solutions offering: “The company’s long-term scientific approach - supported by a culture of innovation and collaboration and a supportive ownership structure - helps it make the product offering relevant to an expanding range of industries.”
    
    

Corporate Announcements

• January 9, 2023: Dassault Systèmes Governance Plan Announced in 2022 Now Effective
  
  
• January 6,2023: CES 2023: The Software République and the Région Île-de-France launch the “AI for Urban Mobility” challenge
  
  
• December 20, 2022: Dassault Systèmes, McPhy and Visiativ Team Up to Drive the Green Energy Transition
  
  
• December 20, 2022: Dassault Systèmes Receives Highest Recognition in Top 2022 Global Sustainability Ratings
  
  
• December 13, 2022: Dassault Systèmes, Egis and B4 Partner in Project to Rebuild Cities in Ukraine
  
  
• December 13, 2022: Everest Group Names Medidata a "Leader" and "Star Performer" in Decentralized Clinical Trial Platforms
  
  
• December 12, 2022: Dassault Systèmes and Ecole Normale Supérieure Paris-Saclay Sign MoU to Boost Virtual Twin Knowledge and Know-How
  
  
• December 6, 2022: Medidata Launches New myMedidata Native App to Expedite Study Start Up and Improve Patient Experience
  
  
• November 29, 2022: Dassault Systèmes and Samsung Heavy Industries Cooperate to Establish a Smart Digital Shipyard
  
  
• November 17, 2022: Dassault Systèmes Names Philippine de T’Serclaes Chief Sustainability Officer
  
  
• November 15, 2022: Medidata Launches Rave Companion, the First Scalable Solution for Automating EHR Data Entry into Rave EDC
  
  
• November 8, 2022: Dassault Systèmes Endorses Action Declaration on Climate Policy Engagement
  
  
• November 3, 2022: Blue Spirit Aero Accelerates the Development of Its Hydrogen-Powered Aircraft with Dassault Systèmes
  
  
• October 27, 2022: Boehringer Ingelheim Extends the Use of Medidata Rave for Electronic Data Capture in Clinical Trials
  
  

Today’s Webcast and Conference Call Information

Today, Thursday, February 2, 2023, Dassault Systèmes will host, from Paris, a webcasted presentation at 9:00 AM London Time/ 10:00 AM Paris time, and will then host a conference call at 9:00 AM New York time / 2:00 PM London time / 3:00 PM Paris time. The webcasted presentation and conference calls will be available online by accessing investor.3ds.com.

Additional investor information is available at investor.3ds.com or by calling Dassault Systèmes’ Investor Relations at +33.1.61.62.69.24.

Investor Relations Events

• First Quarter 2023 Earnings Release: April 26, 2023
• Capital Markets Day: June 9, 2023
• Second Quarter 2023 Earnings Release: July 25, 2023
• Fourth Quarter 2023 Earnings Release: October 25, 2023

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 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 2021 Universal Registration Document (‘Document d'enregistrement universel’) filed with the AMF (French Financial Markets Authority) on March 17, 2022, available on the Group’s website www.3ds.com.

In particular, please refer to the risk factor “Uncertain Global Economic Environment” in section 1.9.1.1 of the 2021 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 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;
• current inflation forecasts, as well as uncertainties regarding the extent and duration of this trend, could adversely affect the financial condition 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 for the health and safety of Dassault Systèmes’ employees. It could 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. 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 first quarter and 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 2021 Universal Registration Document filed with the AMF on March 17, 2022.

In the tables accompanying this press release the Group sets forth its supplemental non-IFRS figures for revenue, operating income, operating margin, net income and diluted earnings per share, which exclude the effect of adjusting the carrying value of acquired companies’ deferred revenue, share-based compensation expense and related social charges, the amortization of acquired intangible assets and of tangibles reevaluation, certain other operating income and expense, net, including impairment of goodwill and acquired intangibles, the effect of adjusting lease incentives of acquired companies, certain one-time items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments and certain one-time tax effects. The tables also set forth the most comparable IFRS financial measure and reconciliations of this information with non-IFRS information.

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 3D virtual environments to imagine sustainable innovations. By creating virtual twin experiences of the real world with our 3DEXPERIENCE platform and applications, our customers push the boundaries of innovation, learning and production to achieve a more sustainable world for patients, citizens, and consumers.  Dassault Systèmes brings value to more than 300,000 customers of all sizes, in all industries, in more than 140 countries. For more information, visit www.3ds.com

Dassault Systèmes Investor Relations Team                FTI Consulting

Béatrix Martinez / François-José Bordonado:                Arnaud de Cheffontaines: +33 1 47 03 69 48

+33 1 61 62 40 73 / 69 24                                Jamie Ricketts : +44 20 3727 1600

investors@3ds.com                                        Tom Blundell: +44 20 3727 1600

USA & Canada: callie.gauzer@3ds.com

Dassault Systèmes Press Contacts

Arnaud Malherbe

+33 (0)1 61 62 87 73

arnaud.malherbe@3ds.com        

© Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the Compass icon, the 3DS logo, CATIA, BIOVIA, GEOVIA, SOLIDWORKS, 3DVIA, ENOVIA, 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.

APPENDIX TABLE OF CONTENTS

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.    

Glossary of Definitions

Non-IFRS Financial Information

Acquisitions and Foreign Exchange Impact

Condensed consolidated statements of income

Condensed consolidated balance sheet

Condensed consolidated cash flow statement

IFRS – non-IFRS reconciliation

DASSAULT SYSTÈMES - Glossary of Definitions

Information in Constant Currencies

Dassault Systèmes have followed a long-standing policy of measuring our revenue performance and setting our revenue objectives exclusive of currency in order to measure in a transparent manner the underlying level of improvement in our total revenue and software revenue by activity, industry, geography and product lines. We believe it is helpful to evaluate our growth exclusive of currency impacts, particularly to help understand revenue trends in our business. Therefore, we provide percentage increases or decreases in our revenue and expenses (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 trend information is expressed by us “in constant currencies”, the results of the “prior” period have first been recalculated using the average exchange rates of the comparable period in the current year, and then compared with the results of the comparable period in the current year.

While constant currency calculations are not considered to be an IFRS measure, we do believe these measures are critical to understanding our global revenue results and to compare with many of our competitors who report their financial results in U.S. dollars. Therefore, we are including this calculation for comparing IFRS revenue figures for comparable periods as well as for comparing non-IFRS revenue figures for comparable periods. All information at constant exchange rates are expressed as a rounded percentage and therefore may not precisely reflect the absolute figures.

Information on Growth excluding acquisitions (“organic growth”)

In addition to financial indicators on the entire Group’s scope, Dassault Systèmes provides growth excluding acquisitions effect, also named organic growth. In order to do so, the data relating to the scope is restated excluding acquisitions, from the date of the transaction, over a period of 12 months.

Information on Industrial Sectors

Dassault Systèmes’ Industries develop Solution Experiences, industry-focused offerings that deliver specific value to companies and users in a particular industry. We serve eleven industries structured into three sectors:

• Manufacturing Industries: Transportation & Mobility; Aerospace & Defense; Marine & Offshore; Industrial Equipment; High-Tech; Home & Lifestyle; Consumer Packaged Goods & Retail. In Manufacturing Industries, Dassault Systèmes help customers virtualize their operations, improve data sharing and collaboration across their organization, reducing costs and time-to-market, and becoming more sustainable;
• Life Sciences & Healthcare: Life Sciences & Healthcare. In this sector, the Group aims to address the entire cycle of the patient journey to lead the way toward precision medicine. To reach the broader healthcare ecosystem from Research to commercial, the Group’s solutions connect all elements from molecule development to prevention to care, and combine new therapeutics, med practices, and med-tech;
• Infrastructure & Cities: Infrastructure, Energy & Materials; Architecture, Engineering & Construction; Cities, Public & Business Services. In Infrastructure & Cities, the Group supports the virtualization of the sector in making the construction industry more efficient and sustainable.
  
  

Information on Product Lines

Our product lines financial reporting include the following financial information:

• Industrial Innovation software revenue, comprised of our CATIA, ENOVIA, SIMULIA, DELMIA, GEOVIA, NETVIBES, and 3DEXCITE brands;
• Life Sciences software revenue, comprised of our MEDIDATA and BIOVIA brands;
• Mainstream Innovation software revenue, comprised of our CENTRIC PLM and 3DVIA brands, as well as our 3DEXPERIENCE WORKS family which includes the SOLIDWORKS brand.
  
  

3DEXPERIENCE Licenses and Software Contribution

To measure the progressive penetration of 3DEXPERIENCE software, we utilize the following ratios:

• for Licenses revenue, we calculate the percentage contribution by comparing total 3DEXPERIENCE Licenses revenue to Licenses revenue for all product lines except SOLIDWORKS and acquisitions (“related Licenses revenue”);
• for software revenue, the Group calculates the percentage contribution by comparing total 3DEXPERIENCE software revenue to software revenue for all product lines except SOLIDWORKS and acquisitions (“related software revenue”).

Cloud Revenue

Cloud revenues correspond to revenue generated through a catalog of online services delivered by Dassault Systèmes via a cloud infrastructure hosted by Dassault Systèmes, or by third party providers of cloud computing infrastructure services. This offering is available through different deployment methods: Public cloud, Private cloud, Dedicated cloud. All cloud applications can be offered through perpetual licenses and maintenance or subscriptions models.

Adjusted Net Debt

The Adjusted Net Debt corresponds to the net financial debt position (borrowings net of cash, cash equivalent and short-term investments) adjusted of IFRS 16 lease liabilities.

IFRS EBITDAO (Earnings Before Interest, Taxes and Amortization Operating)

The IFRS EBITDAO corresponds to the IFRS operating income adjusted of amortization, depreciation and impairment expense of intangible and tangible assets and of non-cash share-based payment expense (excluding related social charges).

DASSAULT SYSTÈMES
NON-IFRS FINANCIAL INFORMATION
(unaudited; in millions of Euros, except per share data, percentages, headcount and exchange rates)

Non-IFRS key figures exclude the effects of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue), share-based compensation expense, including related social charges, amortization of acquired intangible assets and of tangible assets revaluation, lease incentives of acquired companies, other operating income and expense, net, including the acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets, certain one-time items included in financial loss, net, certain one-time tax effects and the income tax effects of these non-IFRS adjustments.

Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.

In millions of Euros, except per share data, percentages, headcount and exchange rates	Non-IFRS reported
	Three months ended				Twelve months ended
	December 31, 2022	December 31, 2021	Change	Change in constant currencies	December 31, 2022	December 31, 2021	Change	Change in constant currencies
Total Revenue	€ 1,583.9	€ 1,367.9	16%	10%	€ 5,665.5	€ 4,861.7	17%	9%
Revenue breakdown by activity
Software revenue	1,428.6	1,239.6	15%	9%	5,114.3	4,404.0	16%	9%
Of which licenses and other software revenue	378.7	347.6	9%	5%	1,106.2	982.9	13%	6%
Of which subscription and support revenue	1,050.0	891.9	18%	11%	4,008.1	3,421.1	17%	10%
Services revenue	155.3	128.3	21%	15%	551.2	457.8	20%	14%
Software revenue breakdown by product line
Industrial Innovation	778.9	682.3	14%	11%	2,719.1	2,417.9	12%	8%
Life Sciences	302.5	245.1	23%	12%	1,126.2	899.8	25%	13%
Mainstream Innovation	347.3	312.2	11%	3%	1,269.0	1,086.3	17%	7%
Software Revenue breakdown by geography
Americas	578.8	458.8	26%	13%	2,062.0	1,678.6	23%	9%
Europe	535.2	491.7	9%	6%	1,816.4	1,627.1	12%	8%
Asia	314.6	289.0	9%	7%	1,235.9	1,098.2	13%	10%
Operating income	€ 552.1	€ 502.9	10%		€ 1,892.0	€ 1,666.2	14%
Operating margin	34.9%	36.8%			33.4%	34.3%
Net income attributable to shareholders	€ 455.8	€ 380.2	20%		€ 1,512.2	€ 1,265.3	20%
Diluted earnings per share (1)	€ 0.34	€ 0.29	20%	13%	€ 1.13	€ 0.95	19%	11%
Closing headcount	24,530	22,306	10%		24,530	22,306	10%
Average Rate USD per Euro	1.02	1.14	(11)%		1.05	1.18	(11)%
Average Rate JPY per Euro	144.24	130.01	11%		138.03	129.88	6%

⁽¹⁾ 2021 and 2022 figures have been presented in order to reflect the five-for-one share split on Dassault Systèmes’ share effected on July 7, 2021.

DASSAULT SYSTÈMES
ACQUISITIONS AND FOREIGN EXCHANGE IMPACT
(unaudited; in millions of Euros)

In millions of Euros	Non-IFRS reported			o/w growth at constant rate and scope	o/w change of scope impact at current year rate	o/w FX impact on previous year figures
	December 31, 2022	December 31, 2021	Change
Revenue QTD	1,583.9	1,367.9	216.0	135.3	2.3	78.4
Revenue YTD	5,665.5	4,861.7	803.8	477.4	3.8	322.6

        

        

DASSAULT SYSTÈMES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited; in millions of Euros, except per share data and percentages)

In millions of Euros, except per share data and percentages	IFRS reported
	Three months ended		Twelve months ended
	December 31,	December 31,	December 31,	December 31,
	2022	2021	2022	2021
Licenses and other software revenue	378.7	347.6	1,106.2	982.9
Subscription and Support revenue	1,049.9	891.8	4,007.9	3,419.7
Software revenue	1,428.6	1,239.5	5,114.0	4,402.6
Services revenue	155.3	128.3	551.2	457.5
Total Revenue	€ 1,583.9	€ 1,367.8	€ 5,665.3	€ 4,860.1
Cost of software revenue (1)	(123.3)	(109.5)	(463.8)	(407.3)
Cost of services revenue	(123.7)	(97.4)	(455.5)	(383.0)
Research and development expenses	(281.7)	(249.0)	(1,087.2)	(949.3)
Marketing and sales expenses	(424.7)	(377.0)	(1,502.6)	(1,299.9)
General and administrative expenses	(130.7)	(117.3)	(435.2)	(400.8)
Amortization of acquired intangible assets and of tangible assets revaluation	(102.4)	(95.1)	(401.9)	(369.0)
Other operating income and expense, net	(5.5)	(4.0)	(16.0)	(31.3)
Total Operating Expenses	(1,192.0)	(1,049.5)	(4,362.4)	(3,840.7)
Operating Income	€ 391.8	€ 318.3	€ 1,302.9	€ 1,019.4
Financial income (loss), net	10.0	(2.5)	2.8	(15.1)
Income before income taxes	€ 401.9	€ 315.8	€ 1,305.6	€ 1,004.3
Income tax expense	(73.4)	(78.5)	(375.4)	(230.4)
Net Income	€ 328.5	€ 237.3	€ 930.2	€ 773.8
Non-controlling interest	0.1	(0.2)	1.3	(0.2)
Net Income attributable to equity holders of the parent	€ 328.6	€ 237.1	€ 931.5	€ 773.7
Basic earnings per share (2)	0.25	0.18	0.71	0.59
Diluted earnings per share (2)	€ 0.25	€ 0.18	€ 0.70	€ 0.58
Basic weighted average shares outstanding (in millions)	1,314.1	1,311.5	1,312.3	1,309.8
Diluted weighted average shares outstanding (in millions)	1,330.7	1,333.3	1,332.7	1,332.1

⁽¹⁾ Excluding amortization of acquired intangible assets and of tangible assets revaluation.
⁽²⁾ 2021 and 2022 figures have been presented in order to reflect the five-for-one share split on Dassault Systèmes’ share effected on July 7, 2021.

IFRS reported	Three months ended December 31, 2022		Twelve months ended December 31, 2022
	Change (3)	Change in constant currencies	Change (3)	Change in constant currencies
Total Revenue	16%	10%	17%	9%
Revenue by activity
Software revenue	15%	9%	16%	9%
Services revenue	21%	15%	20%	14%
Software Revenue by product line
Industrial Innovation	14%	11%	12%	8%
Life Sciences	23%	12%	25%	13%
Mainstream Innovation	11%	3%	17%	7%
Software Revenue by geography
Americas	26%	13%	23%	9%
Europe	9%	6%	12%	8%
Asia	9%	7%	13%	10%

⁽³⁾ Variation compared to the same period in the prior year.

DASSAULT SYSTÈMES
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited; in millions of Euros)

In millions of Euros	IFRS reported
	December 31,	December 31,
	2022	2021
ASSETS
Cash and cash equivalents	2,769.0	2,979.5
Trade accounts receivable, net	1,661.6	1,366.3
Contract assets	20.3	12.7
Other current assets	393.5	360.5
Total current assets	4,844.3	4,719.0
Property and equipment, net	819.9	817.0
Goodwill and Intangible assets, net	8,273.6	8,175.0
Other non-current assets	323.3	507.7
Total non-current assets	9,416.8	9,499.7
Total Assets	€ 14,261.1	€ 14,218.7
LIABILITIES
Trade accounts payable	216.3	192.4
Contract liabilities	1,536.6	1,304.4
Borrowings, current	258.6	903.3
Other current liabilities	869.6	1,070.3
Total current liabilities	2,881.0	3,470.3
Borrowings, non-current	2,737.4	2,966.4
Other non-current liabilities	1,317.8	1,571.0
Total non-current liabilities	4,055.2	4,537.4
Non-controlling interests	14.2	13.7
Parent shareholders' equity	7,310.7	6,197.3
Total Liabilities	€ 14,261.1	€ 14,218.7

DASSAULT SYSTÈMES
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
(unaudited; in millions of Euros)

In millions of Euros	IFRS reported
	Three months ended			Twelve months ended
	December 31,	December 31,	Change	December 31,	December 31,	Change
	2022	2021		2022	2021
Net income attributable to equity holders of the parent	328.6	237.1	91.5	931.5	773.7	157.8
Non-controlling interest	(0.1)	0.2	(0.3)	(1.3)	0.2	(1.5)
Net income	328.5	237.3	91.2	930.2	773.8	156.4
Depreciation of property and equipment	44.7	49.0	(4.3)	184.1	179.4	4.7
Amortization of intangible assets	105.1	98.0	7.1	412.7	381.1	31.6
Adjustments for other non-cash items	(144.4)	40.1	(184.5)	80.8	144.6	(63.8)
Changes in working capital	(89.2)	(60.6)	(28.6)	(82.6)	134.3	(216.9)
Net Cash From Operating Activities	€ 244.6	€ 363.8	€ (119.2)	€ 1,525.2	€ 1,613.1	€ (87.9)
Additions to property, equipment and intangibles assets	(26.3)	(29.9)	3.6	(132.3)	(103.7)	(28.6)
Payment for acquisition of businesses, net of cash acquired	(33.7)	(14.0)	(19.7)	(46.4)	(21.4)	(25.0)
Other	(4.8)	(23.6)	18.8	(35.2)	(35.3)	0.1
Net Cash Provided by (Used in) Investing Activities	€ (64.8)	€ (67.5)	€ 2.7	€ (213.9)	€ (160.4)	€ (53.5)
Proceeds from exercise of stock options	12.7	33.2	(20.5)	62.0	156.0	(94.0)
Cash dividends paid	-	-	-	(223.5)	(147.1)	(76.4)
Repurchase and sale of treasury stock	(33.2)	(26.9)	(6.3)	(639.6)	(283.2)	(356.4)
Capital increase	-	-	-	198.6	-	198.6
Acquisition of non-controlling interests	(1.2)	-	(1.2)	(1.8)	(0.1)	(1.7)
Proceeds from borrowings	2.0	(0.1)	2.1	257.8	1.3	256.5
Repayment of borrowings	(3.3)	(0.6)	(2.7)	(1,143.9)	(341.2)	(802.7)
Repayment of lease liabilities	(27.5)	(24.4)	(3.1)	(102.0)	(97.6)	(4.4)
Net Cash Provided by (Used in) Financing Activities	€ (50.5)	€ (18.8)	€ (31.7)	€ (1,592.4)	€ (711.9)	€ (880.5)
Effect of exchange rate changes on cash and cash equivalents	(147.8)	31.6	(179.4)	70.6	89.8	(19.2)
Increase (decrease) in cash and cash equivalents	€ (18.5)	€ 309.1	€ (327.6)	€ (210.5)	€ 830.6	€ (1,041.1)
Cash and cash equivalents at beginning of period	€ 2,787.5	€ 2,670.4		€ 2,979.5	€ 2,148.9
Cash and cash equivalents at end of period	€ 2,769.0	€ 2,979.5		€ 2,769.0	€ 2,979.5

DASSAULT SYSTÈMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data and percentages)

Readers are cautioned that the supplemental 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 Group’s supplemental 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 Document d’Enregistrement Universel for the year ended December 31, 2021 filed with the AMF on March 17, 2022. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

In millions of Euros, except per share data and percentages	Three months ended December 31,						Change
	2022	Adjustment(1)	2022	2021	Adjustment(1)	2021	IFRS	Non-IFRS(2)
	IFRS		Non-IFRS	IFRS		Non-IFRS
Total Revenue	€ 1,583.9	-	€ 1,583.9	€ 1,367.8	€ 0.1	€ 1,367.9	16%	16%
Revenue breakdown by activity
Software revenue	1,428.6	-	1,428.6	1,239.5	0.1	1,239.6	15%	15%
Licenses and other software revenue	378.7	-	378.7	347.6	-	347.6	9%	9%
Subscription and Support revenue	1,049.9	0.0	1,050.0	891.8	0.1	891.9	18%	18%
Recurring portion of Software revenue	73%		73%	72%		72%
Services revenue	155.3	-	155.3	128.3	-	128.3	21%	21%
Software Revenue breakdown by product line
Industrial Innovation	778.9	-	778.9	682.3	-	682.3	14%	14%
Life Sciences	302.5	-	302.5	245.1	-	245.1	23%	23%
Mainstream Innovation	347.3	-	347.3	312.1	0.1	312.2	11%	11%
Software Revenue breakdown by geography
Americas	578.8	-	578.8	458.8	0.1	458.8	26%	26%
Europe	535.2	-	535.2	491.7	-	491.7	9%	9%
Asia	314.6	-	314.6	289.0	-	289.0	9%	9%
Total Operating Expenses	€ (1,192.0)	€ 160.3	€ (1,031.8)	€ (1,049.5)	€ 184.5	€ (864.9)	14%	19%
Share-based compensation expense and related social charges	(51.5)	51.5	-	(84.7)	84.7	-
Amortization of acquired intangible assets and of tangible assets revaluation	(102.4)	102.4	-	(95.1)	95.1	-
Lease incentives of acquired companies	(0.8)	0.8	-	(0.7)	0.7	-
Other operating income and expense, net	(5.5)	5.5	-	(4.0)	4.0	-
Operating Income	€ 391.8	€ 160.3	€ 552.1	€ 318.3	€ 184.6	€ 502.9	23%	10%
Operating Margin	24.7%		34.9%	23.3%		36.8%
Financial income (loss), net	10.0	0.6	10.6	(2.5)	0.2	(2.3)	N/A	N/A
Income tax expense	(73.4)	(33.2)	(106.6)	(78.5)	(41.6)	(120.1)	(6)%	(11)%
Non-controlling interest	0.1	(0.3)	(0.2)	(0.2)	(0.2)	(0.4)	(173)%	(36)%
Net Income attributable to shareholders	€ 328.6	€ 127.3	€ 455.8	€ 237.1	€ 143.1	€ 380.2	39%	20%
Diluted Earnings Per Share (3)	€ 0.25	€ 0.10	€ 0.34	€ 0.18	€ 0.11	€ 0.29	39%	20%

⁽¹⁾ In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

In millions of Euros, except percentages	Three months ended December 31,								Change
	2022 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2022 Non-IFRS	2021 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2021 Non-IFRS	IFRS	Non- IFRS
Cost of revenue	(247.0)	2.4	0.2	(244.3)	(206.9)	7.5	0.2	(199.2)	19%	23%
Research and development expenses	(281.7)	19.7	0.3	(261.7)	(249.0)	29.3	0.3	(219.4)	13%	19%
Marketing and sales expenses	(424.7)	14.7	0.1	(409.9)	(377.0)	25.3	0.1	(351.6)	13%	17%
General and administrative expenses	(130.7)	14.8	0.1	(115.8)	(117.3)	22.6	0.1	(94.7)	11%	22%
Total		€ 51.5	€ 0.8			€ 84.7	€ 0.7

⁽²⁾ The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.

⁽³⁾ Based on a weighted average 1,330.7 million diluted shares for Q4 2022 and 1,333.3 million diluted shares for Q4 2021. 2021 and 2022 figures have been presented in order to reflect the five-for-one share split on Dassault Systèmes’ share effected on July 7, 2021.

DASSAULT SYSTÈMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data and percentages)

Readers are cautioned that the supplemental 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 Group’s supplemental 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 Document d’Enregistrement Universel for the year ended December 31, 2021 filed with the AMF on March 17, 2022. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

In millions of Euros, except per share data and percentages	Twelve months ended December 31,						Change
	2022	Adjustment(1)	2022	2021	Adjustment(1)	2021	IFRS	Non-IFRS(2)
	IFRS		Non-IFRS	IFRS		Non-IFRS
Total Revenue	€ 5,665.3	€ 0.2	€ 5,665.5	€ 4,860.1	€ 1.6	€ 4,861.7	17%	17%
Revenue breakdown by activity
Software revenue	5,114.0	0.2	5,114.3	4,402.6	1.4	4,404.0	16%	16%
Licenses and other software revenue	1,106.2	-	1,106.2	982.9	-	982.9	13%	13%
Subscription and Support revenue	4,007.9	0.2	4,008.1	3,419.7	1.4	3,421.1	17%	17%
Recurring portion of Software revenue	78%		78%	78%		78%
Services revenue	551.2	-	551.2	457.5	0.2	457.8	20%	20%
Software Revenue breakdown by product line
Industrial Innovation	2,719.1	-	2,719.1	2,417.9	-	2,417.9	12%	12%
Life Sciences	1,126.2	-	1,126.2	898.8	1.0	899.8	25%	25%
Mainstream Innovation	1,268.8	0.2	1,269.0	1,085.9	0.4	1,086.3	17%	17%
Software Revenue breakdown by geography
Americas	2,061.8	0.1	2,062.0	1,677.4	1.2	1,678.6	23%	23%
Europe	1,816.3	0.1	1,816.4	1,627.0	0.2	1,627.1	12%	12%
Asia	1,235.9	-	1,235.9	1,098.2	-	1,098.2	13%	13%
Total Operating Expenses	€ (4,362.4)	€ 588.9	€ (3,773.5)	€ (3,840.7)	€ 645.2	€ (3,195.5)	14%	18%
Share-based compensation expense and related social charges	(168.0)	168.0	-	(242.1)	242.1	-
Amortization of acquired intangible assets and of tangible assets revaluation	(401.9)	401.9	-	(369.0)	369.0	-
Lease incentives of acquired companies	(3.0)	3.0	-	(2.8)	2.8	-
Other operating income and expense, net	(16.0)	16.0	-	(31.3)	31.3	-
Operating Income	€ 1,302.9	€ 589.1	€ 1,892.0	€ 1,019.4	€ 646.8	€ 1,666.2	28%	14%
Operating Margin	23.0%		33.4%	21.0%		34.3%
Financial income (loss), net	2.8	2.8	5.6	(15.1)	1.4	(13.7)	(118)%	(141)%
Income tax expense	(375.4)	(10.0)	(385.4)	(230.4)	(152.9)	(383.3)	63%	1%
Non-controlling interest	1.3	(1.3)	0.0	(0.2)	(3.8)	(4.0)	N/A	(100)%
Net Income attributable to shareholders	€ 931.5	€ 580.7	€ 1,512.2	€ 773.7	€ 491.6	€ 1,265.3	20%	20%
Diluted Earnings Per Share (3)	€ 0.70	€ 0.44	€ 1.13	€ 0.58	€ 0.37	€ 0.95	20%	19%

⁽¹⁾ In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

In millions of Euros, except percentages	Twelve months ended December 31,								Change
	2022 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2022 Non-IFRS	2021 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2021 Non-IFRS	IFRS	Non- IFRS
Cost of revenue	(919.4)	8.6	0.9	(909.9)	(790.3)	17.6	0.8	(771.9)	16%	18%
Research and development expenses	(1,087.2)	62.6	1.3	(1,023.4)	(949.3)	84.6	1.3	(863.4)	15%	19%
Marketing and sales expenses	(1,502.6)	48.0	0.5	(1,454.2)	(1,299.9)	70.3	0.4	(1,229.2)	16%	18%
General and administrative expenses	(435.2)	48.8	0.4	(386.1)	(400.8)	69.6	0.3	(331.0)	9%	17%
Total		€ 168.0	€ 3.0			€ 242.1	€ 2.8

⁽²⁾ The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.

⁽³⁾ Based on a weighted average 1,332.7 million diluted shares for FY 2022 and 1,332.1 million diluted shares for FY 2021. 2021 and 2022 figures have been presented in order to reflect the five-for-one share split on Dassault Systèmes’ share effected on July 7, 2021.
2 306 440), or its subsidiaries in the United States and/or other countries.

Attachment

• Dassault Systèmes: Strong FY 2022, Q4 Revenue and EPS Up Double-Digits