2017 3Dexperience® Annual Report
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2017 3DEXPERIENCE® GROUP PRESENTATION FINANCIAL REVIEW & STATEMENTS ANNUAL REPORT CORPORATE GOVERNANCE & CSR DASSAULT SYSTÈMES DASSAULT SYSTÈMES FINANCIAL REPORT GENERAL MEETING OF SHAREHOLDERS ANNUAL REPORT ANNUAL 2017 AC180071-RA-DASSAULT-UK-COUV-FINANCIAL-2017-Dos16.indd 1 16/04/2018 15:02 Additional information CONTENTS KOREA HEADQUARTERS SOUTHERN EUROPE DASSAULT SYSTÈMES Innovazione 3 ASEM Tower 9F, 517 Yeongdong-daero 10, rue Marcel-Dassault - CS 40501, Via dell’ Innovazione, 3 Gangnam-gu, 135798 Seoul, 78946 Vélizy-Villacoublay Cedex, France. 20126 Milano Bicocca Person responsible 3 South Korea. Tel : + 33 (0)1 61 62 61 62 MI, Italia. Tél. : +39 (0) 2334 3061 Tél. : +82 232707800 GEO HEADQUARTERS Corporate governance 183 NORTH AMERICA WESTERN EUROPE JAPAN 15 10, rue Marcel-Dassault - CS 40501, ThinkPark Tower, 2-1-1 Osaki, 175 Wyman Street, Waltham, 1.1 Profi le of Dassault Systèmes, MA 02451, United States. 78946 Vélizy-Villacoublay Cedex, France. Shinagawa-ku, Tokyo, 141-6020, Japan. 3D Tel : +1 781 810 3000 Tel : + 33 (0)1 61 62 61 62 Tel : 81-3-4321-3500 5.3 Transactions in Dassault Systèmes shares LATIN AMERICA INDIA For more information, 85 Avenue Jornalista Roberto Marinho CB - 32, Stylus Serviced Offices visit www.3ds.com 1.3 History 14 5.4 Statutory Auditors 220 13th floor – suite 131 R-Tech Park, Nirlon Complex 1.4 Group Organization 19 5.5 Declarations regarding the administrative Bodies 04576-010 São Paulo, Brazil. Goregaon (E) INVESTOR RELATIONS 1.5 Business Activities 20 Tel : +55 (11) 2348-9900 400063 Mumbai, MH, India Tel : +33 (0)1 61 62 69 24 Tél. : +91 2244764567 Fax : +33 (0)1 70 73 43 59 1.6 Research and Development 39 CENTRAL EUROPE E-mail: [email protected] SOUTHERN ASIA, PACIFIC 1.7 Risk factors 40 Meitnerstrasse 8, Information about D-70563 Stuttgart, Germany. 9 Tampines Grande, #06-13, 6 528735 Singapore. Tel : +49 711 27300 0 Use your smartphone Tel : +65 6511 7988 to learn more about 2 NORTHERN EUROPE Dassault Systèmes CHINA Responsibility 49 Riley Court, Suite 9, Milburn Hill Road, CV4 7HP Coventry, United Kingdom. China Central Place Tower 2, 2.1 Social and Societal Responsibility 50 6.2 Information about the Share Capital 228 Tel : +44 (0) 247 685 7400 Room 707-709 No.79, 2.2 Environmental Responsibility 70 6.3 Information about the Shareholders 231 Jianguo Road 100025 Chaoyang District (Beijing), China. 2.3 Vigilance Plan 83 6.4 Stock Market Information 236 RUSSIA Kuntsevo Plaza, Yartsevskaya Street, 19 Tel : +86 10 6536 2288 1121552 Moscou, Russia. Environmental and Societal Information Presented Tel : +7 495 935 89 28 7 General Meeting 237 2.5 Statutory Auditors’ Attestation on the information 7.1 Presentation of the resolutions proposed pihsrosnops rof diap rof pihsrosnops 87 3 7.2 Draft resolutions proposed by the Board of Directors 3.1 Operating and Financial Review 90 3.2 Financial Objectives 104 Cross-reference tables 253 3.3 Interim and Other Financial Information 105 Thanks to Thierry Alexandre, Alison Becnel, Sophie Bernard, Stéphanie Blavier, François-José Bordonado, Delphine Boudou, Laurence Brochet, John Collemallay, Financial Statements 107 Camille Costes, Delphine Da Maia Levy, Barbara Delva, Elise Devaux, Aliou Dia, Alassane Diouf, Christelle Dran, Isabelle Fuzellier, Marion Garyga, Etienne Grobon, 4 Martin Huynh, Marc Jany, Michele Katz, Zakaria Kharoubi, Emmanuel Lahouste, Lionel Lavarec, Emilie Lepareur, Benjamin Lesné, Frédéric Médard, Catherine Mellini, Cécile Merrer Chakir, Delphine Meurgey, Cédric Meyer, Ornella Mulard, Jordan Paci, Rodolphe Pantanacce, Océane Pinto, Kevin Plaire, Benoît Ponthieux, Arnaud de 4.1 Consolidated Financial Statements 108 Rosnay, Floriane Rossi, Wesley Schokaert, Samia Sellam, Pascale Thibaut, Thuy Khanh Ha Tran, Zijin Wang. 4.2 Parent Company Financial Statements 153 Cover photo by Ross Fraser McLean. 4.3 Legal and Arbitration Proceedings 182 Photographs courtesy of Dassault Systèmes Design and production: ©2018 Dassault Systèmes. 3DEXPERIENCE, the Compass icon, the 3DS logo, CATIA, SOLIDWORKS, ENOVIA, DELMIA, SIMULIA, GEOVIA, EXALEAD, 3D VIA, BIOVIA, NETVIBES, and 3DEXCITE are commercial trademarks or registered trademarks of Dassault Systèmes or its subsidiaries in the United States and/or other countries. All other trademarks are owned by their respective owners. Use of any Dassault Systèmes or its subsidiaries trademarks is subject to their express written approval. AC180071-RA-DASSAULT-UK-COUV-FINANCIAL-2017-Dos16.indd 2 16/04/2018 15:02 ANNUAL REPORT 2017 ANNUAL FINANCIAL REPORT This document is an English-language translation of Dassault Systèmes’ Document de référence (Annual Report), which was filed with the AMF (French Financial Markets Authority) on March 21 , 2018, in accordance with Articles 212-13 of the AMF General Regulation. DASSAULT SYSTÈMES ANNUAL REPORT 2017 1 Only the French version of the Document de référence is legally binding GENERAL This Annual Report also includes: In compliance with Article 28 of European Regulation no. 809/2004 of the Commission, the following information the annual financial report to be prepared and published by is incorporated by reference in this Annual Report: every listed company within four months of the end of its fiscal year, pursuant to Article L. 451-1-2 of the Monetary the consolidated financial statements on pages 92 to 130 and Financial Code and Article 222-3 of the French Financial (inclusive), the parent company financial statements on Markets Authority (“AMF”) General Regulation; and pages 133 to 155 (inclusive), and the related audit reports on pages 131 to 132 and 156 to 159 (inclusive) of the Annual the annual management report of Dassault Systèmes SE’s Report ( Board of Directors, which must be provided to the Document de référence) for the year 2016 filed General Meeting of Shareholders approving the financial with the AMF on March 22, 2017, under no. D. 17.0207; statements for each completed fiscal year, pursuant to the financial information on pages 78 to 90 (inclusive) of Articles L. 225-100 et seq. of the French Commercial Code. the Annual Report (Document de référence) for the year The index set forth on pages 253 and 254 provides cross- 2016 filed with the AMF on March 22, 2017, under no. references to the relevant portions of these two reports. D. 17.0207; All references to “euro” or to the symbol “€” refer to the legal the consolidated financial statements on pages 86 to 121 currency of the French Republic and certain countries of the (inclusive), the parent company financial statements on European Union. All references to the “U.S. dollar” or to the pages 124 to 145 (inclusive), and the related audit reports on symbol “$” refer to the legal currency of the United States. pages 122 to 123 and, 146 to 149 (inclusive) of the Annual Report (Document de référence) for the year 2015 filed As used herein, “Dassault Systèmes”, the “Company” or the with the AMF on March 23, 2016, under no. D. 16-0197; “Group” refers to Dassault Systèmes SE and all the companies included in the scope of consolidation. the financial information on pages 72 to 84 (inclusive) of the Annual Report (Document de référence) for the year “Dassault Systèmes SE” refers only to the European parent 2015 filed with the AMF on March 23, 2016, under no. company of the Group, which is governed by French law. D. 16-0197. The portions of these documents which are not incorporated herein are either not relevant for current investors, or are covered in another section of this Annual Report. 2 ANNUAL REPORT 2017 DASSAULT SYSTÈMES PERSON RESPONSIBLE Person Responsible for the Annual Report Bernard Charlès – Vice-Chairman and Chief Executive Officer. Certification by the Person Responsible for the Annual Report Vélizy-Villacoublay, March 21 , 2018. I hereby certify, after having taken all reasonable measures I have received a completion letter (lettre de fin de travaux) from for this purpose, that the information contained in this Annual the auditors stating that they have verified the information Report (Document de référence) is, to my knowledge, in regarding the financial situation and the financial statements accordance with the facts and that no information liable to included in this Annual Report and that they have read this affect its significance has been omitted. document in its entirety. I certify that, to my knowledge, the financial statements Bernard Charlès have been prepared in accordance with applicable accounting Vice-Chairman and Chief Executive Officer standards and give a faithful representation of the assets, financial situation and results of Dassault Systèmes SE and all the companies included in the scope of consolidation, and that the “management report” the content of which is cross- referenced in a table at page 254 , included in this Annual Report, presents a faithful representation of the business trends, results and financial situation of Dassault Systèmes SE and all the companies included in the scope of consolidation as well as a description of the principal risks and uncertainties which they face. DASSAULT SYSTÈMES ANNUAL REPORT 2017 3 4 ANNUAL REPORT 2017 DASSAULT SYSTÈMES 1 PRESENTATION OF THE GROUP CONTENTS 1.1 Profile of Dassault Systèmes, 1.5 Business Activities 20 the 3DEXPERIENCE Company 6 1.5.1 Principal Activities 20 1.5.2 Dassault Systèmes’ offering 24 1.2 Financial Summary: A Long 1.5.3 Material Contracts 38 History of Sustainable Growth in Revenues, Cash Flow and Dividends 12 1.6 Research and Development 39 1.6.1 Overview 39 1.3 History 14 1.6.2 Intellectual