For 2012, net operating cash flow increased 26% to €566.3 million, compared to €450.9 million for 2011, reflecting net income growth and working capital improvement.
During 2012 the Company completed cash acquisitions of €281.5 million, net of cash acquired; repaid €200 million in borrowings; disbursed cash dividends of €87.8 million; received cash of €98.7 million for stock options exercised and completed share repurchases in the amount of €75.1 million; and made additions to property, equipment and intangibles of €40.7 million.
The Company’s net financial position was €1.28 billion at December 31, 2012, compared to €1.15 billion at December 31, 2011, and was comprised of cash, cash equivalents and short-term investments less long-term debt and less in 2011, the €200 million debt which was repaid in 2012 with cash on hand.
Summary Business, Technology and Corporate Highlights
Aerospace & Defense:
Pratt & Whitney Canada Selects Dassault Systèmes’ 3DEXPERIENCE Platform. Aircraft engine maker chooses ENOVIA application after benchmark; integrated process planning, quality, requirements management, and platform openness were key success factors.
Dassault Systèmes Launches a New Industry Solution Experience: “Winning Program” for Aerospace and Defense. “Winning Program” enables innovative A&D companies to effectively perform front end business activities defining new offers and/or win new business and comprehensively execute the requisite system engineering choices and associated trade studies.
Transportation & Mobility:
Dassault Systèmes’ 3DEXPERIENCE Platform Used on Visteon’s e-Bee Vehicle Concept Project. This new solution helps boost innovation with “Social Cloud.” Visteon Corporation, a leading automotive global supplier, is applying the 3DEXPERIENCE platform’s 3DSwYm social application on the cloud to its recently unveiled e-Bee vehicle concept. The use of 3DSwYm’s social, cloud-based community environment helped Visteon quickly develop innovative new concepts for this demonstration vehicle in its product areas of climate, interior and electronics. Visteon achieved efficiency gains in the development process, while reducing early prototype costs. Visteon also applied the 3DSwYm application to co-create with strategic customers and key supplier/partners on the e-Bee project.
Consumer Goods – Retail:
Dassault Systèmes is named a Leader in Innovation, Capabilities, Functionality and Offering in IDC’s 2012 Retail MarketScape Survey. Dassault Systèmes’ 3DEXPERIENCE platform for Consumer Goods and Retail companies provides organizations with applications needed to collaborate and create the products that will inspire the purchase decision – and to better deliver customer satisfaction all the way through the selling experience.
Dassault Systèmes’ 3DEXPERIENCE Platform Adopted by Olympus Technologies Singapore to Accelerate Medical Device Time to Market - Olympus Technologies Singapore Pte Ltd, a leading endoscope manufacturer, has selected Dassault Systèmes’ 3DEXPERIENCE platform for the development of its medical devices. The new “Licensed to Cure” industry solution experience will be deployed to create a single environment, eliminating scattered processes and data, and “embedding” regulations as an asset, optimizing quality and compliance.
Architecture, Engineering and Construction:
Dassault Systèmes Launches a New Industry Solution Experience: “Lean Construction” for AEC Companies - Architecture, Engineering and Construction companies can now count on a 3D Project Management solution to track real-time progress and eliminate waste.
Dassault Systèmes acquired SquareClock, an innovative start-up providing cloud-based, SaaS-delivered 3D, space planning solutions for residential, professional and shop design purposes. SquareClock has developed a next generation 3D platform for online and onsite marketing to transform the complexity of technical, business and marketing best practices into highly realistic, playful and simple user interactions.
Thibault de Tersant, Senior Executive Vice President and CFO, commented, “All in all, 2012 turned out to be a year of solid growth with both non-IFRS software revenue and non-IFRS earnings per share increasing double-digits. Our non-IFRS operating margin expanded 120 basis points to 31.6%, while at the same time raising our Company brand visibility through the global advertising campaign, as well as expanding our resources, with employee growth of about 6%. We enjoyed a healthy new business dynamic visible in both our new licenses and rental software growth, although as anticipated, we clearly noted a progressively weaker market environment during the second half of the year.
“As we enter 2013, our initial non-IFRS revenue growth objective for
the year of 5-7% in constant currencies is similar to our initial 2012
objective. It assumes that the macro-environment would remain soft
across the whole year and therefore would be weaker than the 2012 first
half. Recurring software revenue growth is expected to continue to
demonstrate a relatively good dynamic. Our operating margin and EPS
objectives assume continued organic investments and also assume
significant currency headwinds, and would need to be adjusted to reflect
potential new acquisitions in support of our strategy.”