Dassault Systèmes (DSY) Guidance summary

Opening remarks and agenda

• Preliminary Q2 2024 results and updated full-year outlook were discussed, with a focus on non-IFRS financials and forward-looking statements.

• Management acknowledged the preliminary nature of the results and set expectations for a full update on July 25th, with a conference call held on July 9, 2024.

Guidance on key objectives

• Full-year 2024 revenue growth guidance revised to 6%-8% (from 8%-10%) due to delayed large deals, with a Q2 revenue shortfall of EUR 30 million.

• Second quarter total revenue estimated at €1.495 billion, about 4% y/y growth.

• Diluted EPS estimated at €0.30, in line with the objective of €0.30 to €0.31; full-year EPS growth guidance revised to 8%-11%.

• No plans to postpone price increases, maintaining alignment with inflation and value discipline.

• Commitment to 10%+ midterm revenue CAGR remains, with H2 and Q4 expected to show stronger growth.

Market trends and strategic opportunities

• Delays in large transactions, especially in aerospace, defense, and some energy projects, due to complex geopolitical and macroeconomic factors.

• Customer demand remains strong, but increased cautiousness in signings; all delayed deals remain in the pipeline.

• Medidata and SOLIDWORKS performed in line with objectives; Medidata expected to return to growth in H2.

• No significant negative patterns observed in Asia; volatility in China is consistent with past trends.