Dassault Systemes : 2023 Universal Registration document

General

This Universal registration document also includes:

• the annual financial report to be prepared and published by every listed company within four months of the end of its fiscal year, pursuant to Article L. 451-1-2 of the French Monetary and Financial Code and Article 222-3 of the French Financial Markets Authority (AMF) General Regulation; and
• the annual management report of Dassault Systèmes SE's Board of Directors, which must be provided to the General Meeting of Shareholders approving the financial statements for each completed fiscal year, pursuant to Articles L. 225-100 and L. 22-10-34 et seq. of the French Commercial Code.

The two indexes set forth on pages 375 and 376 provide cross-references to the relevant portions of these two reports.

All references to "euros" or to the symbol "€" refer to the legal currency of the French Republic and certain countries of the European Union. All references to the "U.S. dollar" or to the symbol "$" refer to the legal currency of the United States.

Due to rounding, the sum of the figures in the tables of this Universal registration document may not exactly correspond to the totals, and the percentages may not accurately reflect the absolute values.

In this Universal registration document, "Dassault Systèmes", the "Company", the "Group" and "we" refer to Dassault Systèmes SE and all the companies included in the scope of consolidation.

"Dassault Systèmes SE" or the "Company" refers only to the European parent company, which is governed by French law.

In compliance with Article 19 of European Regulation no. 2017/1129 of the European Parliament and of the European Council, the following information is incorporated by reference in this Universal registration document:

• the consolidated financial statements on pages 168 to 208 (inclusive), the parent company financial statements on pages 215 to 238 (inclusive), and the related audit reports on pages 209 to 213 and 240 to 244 (inclusive) of the Universal registration document for the year 2022 filed with the French Financial Markets Authority (AMF) on March 17, 2023, under no. D. 23-0112;
• the financial information on pages 152 to 166 (inclusive) of the Universal registration document for the 2022 financial year filed with the French Financial Markets Authority (AMF) on March 17, 2023, under no.
• 1. 23-0112;
• the consolidated financial statements on pages 124 to 162 (inclusive), the parent company financial statements on pages 169 to 191 (inclusive), and the related audit reports on pages 163 to 167 and 193 to 198 (inclusive) of the Universal registration document for the year 2021 filed with the French Financial Markets Authority (AMF) on March 17, 2022, under no. D. 22-0117;
• the financial information on pages 108 to 122 (inclusive) of the Universal registration document for the 2021 financial year filed with the French Financial Markets Authority (AMF) on March 17, 2022, under no.
• 1. 22-0117;

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 Universal registration document.

Vélizy-Villacoublay, March 18, 2024.

I hereby certify that the information contained in this Universal registration document is, to my knowledge, in accordance with the facts and that no information likely to affect its significance has been omitted.

I certify that, to my knowledge, the financial statements have been prepared in accordance with applicable accounting 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 on page 376, 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 main risks and uncertainties which they face.

Pascal Daloz

Chief Executive Officer

"Catalyst and Enabler of the Generative Economy"

Pascal Daloz, Chief Executive Officer

Bernard Charlès, Executive Chairman

As the Experience Economy and the Circular Economy are converging into the Generative Economy, our clients need not only to embrace a sustainable economy, accomplishing more with fewer resources, but also cultivate an economy characterized by personalization, contextualization, and automatic updates of experiences. For both our customers and Dassault Systèmes, this will create new possibilities in terms of markets, audiences and portfolio, just as 3DEXPERIENCE did a decade ago. Our scientific approach, industrial know-how, modeling and simulation capabilities coupled with AI and data science, represent strategic assets for innovators to succeed in the new Generative Economy.

2023 marked an important stage in the transformation of the industries we serve as well as in our performance and strategy.

2023 reflected the successful delivery of our 2018-2023 five-year plan. We doubled our diluted non-IFRSEPS to €1.20, an increase mostly attributed to organic growth. This performance was achieved in five years as initially planned, despite the pandemic and geopolitical instability. Over this period, Dassault Systèmes proved a game-changer in innovation and trusted partner for transformation in the three strategic sectors of the economy we serve - Manufacturing Industries, Life Sciences & Healthcare, and Infrastructure & Cities - thus strengthening our positions and laying a solid foundation for future success. We either established leadership positions or assumed strong positions in promising segments. As evidence, Dassault Systèmes solutions have become the asset of choice and de facto standard in EVs, pharmaceuticals, and nuclear technology.

Over the past five years, the scope of sovereignty has clearly expanded from Defense only to energy, materials, industrial offerings and data - notably health data. Today, products are made of virtual and real. Therefore, virtual assets now hold more strategic value than the physical ones. The virtualization of society requires the highest levels of trust and services: data, as part of organizations' and nations' sovereign legacy, must be valued and protected. Dassault Systèmes, as a global player in virtualization and Cloud services, has become a key strategic partner for sovereignty and trust, both of which being major factors of differentiation for our customers.

Focusing on 2023, we have delivered revenue growth of 9% and built momentum in subscription revenue with an increase of 16%, both in constant currencies. We have delivered on our profitability objectives, achieving a non- IFRS operating margin of 32.4%, all the while continuing to invest in our future growth. We increased our headcount by 6%, which sets us apart from many tech players.

Across the 12 industries we serve, we saw a renewed focus on investment in innovation and concluded a significant number of large commercial agreements for our 3DEXPERIENCE platform. This is driven by the imperative for our customers to gain a competitive edge through rapid innovation and operational efficiency while staying profitable, meeting regulatory sustainability deadlines, and decoupling economic growth from resource consumption. Clients are turning to Dassault Systèmes to enable real-time analysis of raw material and part substitutions, as well as the reshaping of value networks.

These results have provided a very solid platform for us to embark on our new five-year plan to double again non-IFRSEPS to reach €2.40. Strategically positioned, we can leverage a vast market creating new opportunities.

This marks an important stage in our strategy, as we're introducing the "Generative Economy" as our horizon for 2040. It's a new milestone in our legacy.

In 2012, we stated that "product is no longer enough" to build a sustainable economy and opened up the Experience Economy, centered on product usage. In 2020, we declared that industry had to shift "from things to life" and extended Virtual Twin Experiences to living organisms - including human beings.

Now, to support our customers' transformation, it's time to accelerate this shift to "life of things". Mirroring the metamorphic method of life is the driving principle of the "Generative Economy": imagine self-healing materials; or products that are grown rather than manufactured; or net-positive business models giving as much back to society as they take away… We see "generative" as the solution to "consumption". A consumption model is not sustainable because it entails negative eco-bills for customers - the eco-bill being the ratio between what we take from the planet and society and what we give back.

We believe that the industry can be the solution to circularity provided it reaches a new balance. All industries will have to go through this metamorphosis and Dassault Systèmes is mission critical for businesses to imagine, create, and deliver generative experiences to their consumers, patients, workers, citizens, and society at large.

As virtualization is the catalyst and enabler of the Generative Economy, we want to push our Virtual Twin Experience approach further. Indeed, mobility is not about devices only, it's about environments involving passengers, vehicles, buildings, and air quality. Cancer is not just cells: it's the effect of an organic process, and to better heal cancer, we need to understand it in a more holistic manner. For all this, we have to connect multiple Virtual Twin Experiences together.

This is what we call UNIV+RSES, a combination of multiple virtual twins, unifying all stakeholders, knowledge and know-how, and virtual and real.

The IFWE Loop is our lever in the short and mid-term to allow our customers achieve this strategic move. For 40 years, Dassault Systèmes has powered the spiral of innovation, guiding innovation from design to manufacturing. Today, as our most advanced clients already think in terms of lifecycle and systems of systems, we extend this journey into an infinite loop by seamlessly connecting the virtual and the real with real-world data. In the Generative Economy, we can take advantage of data science to innovate and improve the users experience. This opens up new possibilities, such as giving life to things: powered by real-world data, physical objects become augmented objects. Cars can be monitored and optimized in real-time through their virtual counterpart. This will enable 'software-defined experiences', shifting the value from physical assets to software, all the while empowering our clients to establish direct connections with their end customers, providing tailored experiences. Crucially, this software will be "cyber-software" to address cybersecurity. Dassault Systèmes brings together new ecosystems and fosters new public-private partnerships to tackle these challenges. In addition, it will be possible to generate multiple lives of the things - waste is becoming a resource for new products. It's the PLM of the 21st century: Dassault Systèmes invented Product Lifecycle Management in the 1990s, and now we virtualize the multiple cycles of lives of things.

Doing so, we aim to leverage the power of the numbers to broaden our value proposition and make generative innovation accessible to all business users, consumers, patients, and citizens. This will substantially expand our addressable market and serve as a catalyst for accelerating top-line growth.

PresentatIon of the Company



We are best positioned to catalyze significant transformations in the global industry.

In Manufacturing Industries, we catalyze change with electrification. Moving from thermal to electric requires a metamorphosis of the entire value network - from consumers needs to battery providers to materials providers to charging stations and grids.

In Life Sciences & Healthcare, we empower customers with generative therapeutics and bioreactors to meet rising demand at sustainable costs. We're also pioneering precision medicine and a shift from cure to care - from treatment to prevention.

In Infrastructure & Cities, our customers benefit from breakthrough innovation we bring to create alternatives to fossil energies such as nuclear, hydrogen or biofuels.

What sets us apart is our ability to provide a science-based representation of the world's complexity, combining data science, modeling and simulation. Our Artificial Intelligence (AI) engines elevate gigantic data into structured knowledge and know-how, Intellectual Property being innovators' most powerful competitive asset. We work hand in hand with the scientific communities to explore deep-coupling of AI, cyber systems and ModSim at the core of which is bio science.

In harnessing the power of AI-driven Virtual Twin Experiences, we are upskilling the workforce of the future. AI automates repetitive tasks, driving significant productivity gains, enabling informed decision-making, and nurturing imagination and creativity. AI shifts the responsibilities of workers from "doing" to "choosing", acting as a true cornucopia to driving innovation and success.

Finally, the governance organization carefully crafted over years and aligned with the Company's long term strategy, is effective since January 1st, 2024. Pascal Daloz now serves as Dassault Systèmes Chief Executive Officer, as announced last June, and Bernard Charlès is Executive Chairman. As the CEO, Pascal Daloz, alongside a talented executive team, is engaged to build on the Company's powerful legacy to lead Dassault Systèmes into a new chapter and increase the value we bring to our giant customer base. The role of Bernard Charlès as Executive Chairman is to organize the Board of Directors' work encompassing strategy, governance, risks' oversight and corporate social & environmental responsibility. Furthermore, the Executive Chairman collaborates with the CEO on strategy, research, and developing our connections with governments and longstanding clients.

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The two of us have worked side by side for 25 years. Today, we continue the successful tandem approach that Bernard Charlès and Charles Edelstenne formed for the past 40 years. What matters most to us is that we share the same vision for Dassault Systèmes: pushing the boundaries of science and the imagination and inspiring significant transformations in the industry for the benefit of consumers, patients, citizens and learners. Our purpose - to provide 3DEXPERIENCE universes to harmonize product, nature, and life - is our inspiration.

Since inception, Dassault Systèmes' leadership and trusted relationships with customers have been built on a solid, consistent and independent governance. We are committed to ensuring that Dassault Systèmes has the means and freedom to pursue innovative strategies.

We thank our teams for their dedication to our success. We thank our clients for their continued trust. We are proud to be continuing this journey together and have every confidence we will succeed.