Contents
General
Person responsible
1
PresentatIon of the Company
2
3
5
3
Financial review and prospects
3.1
3.2
3.3
Operating and Financial Review
Financial Objectives
Interim and Other Financial Information
Dassault Systèmes’ Vision, Strategy and Performance 6
4
Financial statements
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
1.9
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
9
Key data
10
Profile and Purpose of Dassault Systèmes
15
History and Development of the Company
20
Business Activities
35
Research and development
Company Organization
40
Financial Summary: five‑year historical information 41
Environmental, Social and Governance Performance 43
48
Risk Factors
Social, Societal and Environmental
Responsibility
Sustainability Governance
Social, Societal and Environmental Risks
Social Responsibility
Societal Responsibility
Environmental Responsibility
Business Ethics and Vigilance Plan
Environmental, Social and Governance Metrics
Reporting Methodology
Appendices
Independent Verifier’s Reports
Statutory Auditors’ Attestation
on the information relating to the
Dassault Systèmes SE’s total amount paid for
sponsorship
57
62
65
67
77
93
124
135
146
153
161
168
4.1
4.2
4.3
Consolidated Financial Statements
Parent company financial statements
Legal and Arbitration Proceedings
5
Corporate Governance
5.1
5.2
5.3
5.4
5.5
6
6.1
6.2
6.3
6.4
The Board’s Corporate Governance Report
Enterprise risk management and internal
control procedures
Summary of Share Transactions by Dassault
Systèmes Executives
Information About the Statutory Auditors
Declarations Regarding the Administrative
and Management Bodies
Information about Dassault
Systèmes SE, the Share Capital and the
Ownership structure
Information about Dassault Systèmes SE
Information About the Share Capital
Information About the Shareholder Base
Stock Market Information
7
General Meeting
7.1
7.2
Presentation of the Resolutions Proposed
by the Board of Directors to the General
Meeting of May 22, 2024
Text of the Draft Resolutions Proposed
by the Board of Directors to the General
Meeting of May 22, 2024
171
172
184
185
187
188
233
265
267
268
329
335
338
338
339
340
344
347
354
355
356
366
UNIVERSAL
REGISTRATION
DOCUMENT 2023
Annual financial report
This document is an English‑language translation of Dassault Systèmes’ Document d’enregistrement universel
(Universal registration document), which was filed with the AMF (French Financial Markets Authority) on
March 18, 2024, under regulation (UE) 2017/1129 without prior approval in accordance with Article 9 of such
regulation. Only the French version of the Document d’enregistrement universel is legally binding.
The format of this Universal registration document is different from that of the official version filed with
the AMF on March 18, 2024.
1
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 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.
D. 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.
D. 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.
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.
this Universal
registration document,
In
“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.
2
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Person responsible
Person Responsible for the Universal registration document
Pascal Daloz – Chief Executive Officer.
Certification by the Person Responsible for the
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
3
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 4
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
1
PresentatIon of the Company
PRESENTATION OF
THE COMPANY 1
1
1
Dassault Systèmes’ Vision, Strategy and Performance
1.1
1.2
1.3
Key data
Profile and Purpose of Dassault Systèmes
History and Development of the Company
1.3.1
1.3.2
Summary
Our Timeline
1.4
Business Activities
1.4.1
1.4.2
1.4.3
1.5
1.5.1
1.5.2
1.5.3
1.5.4
1.6
1.6.1
1.6.2
1.7
1.8
1.8.1
1.8.2
1.9
1.9.1
1.9.2
1.9.3
Dassault Systèmes’ Corporate Model*
Dassault Systèmes
Dassault Systèmes’ Offering
Material Contracts
Research and development
Overview
SaaS offering and Services
Intellectual Property
Investments
Company Organization
Dassault Systèmes SE’s Position within the Company
Principal Subsidiaries of the Company
Financial Summary: five‑year historical information
Environmental, Social and Governance Performance
Key Metrics
Main Ratings and Awards
Risk Factors
Risks Related to the Business
Financial and Market Risks
Insurance
6
9
10
15
15
16
20
20
22
25
33
35
35
35
37
37
40
40
40
41
43
43
47
48
48
53
55
5
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
PresentatIon of the Company
1
Dassault Systèmes’ Vision, Strategy and Performance
“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‑IFRS EPS 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.
6
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.
in
investment
Across the 12 industries we serve, we saw a renewed
focus on
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‑IFRS
EPS 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.
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
PresentatIon of the Company
are best positioned
We
transformations in the global industry.
to
catalyze
significant
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.
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.
1
1
7
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
PresentatIon of the Company
1
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.
8
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
1.1
Key data
PresentatIon of the Company
Key data
1
1
9
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Profile and Purpose of Dassault Systèmes
1.2
Profile and Purpose of Dassault Systèmes
The purpose of Dassault Systèmes is to provide business
and people with 3DEXPERIENCE universes to imagine
sustainable innovations capable of harmonizing product,
nature and life.
Dassault Systèmes, a global leading player in sustainable
innovation, provides to companies and individuals virtual
twin experiences based on an unique collaborative and
secured software platform. In three main sectors of the
economy
Industries, Life Sciences &
Healthcare, Infrastructure & Cities), Dassault Systèmes
develops virtual twin experiences that allow customers
to create products and services for a more sustainable and
desirable world.
(Manufacturing
This representation of the real world, based on scientific
laws and mathematical models and which combines virtual
modeling, simulation and visualization, makes it possible to
imagine, design and deploy new concepts or processes.
Dassault Systèmes helps its customers to face their most
ambitious challenges of the past ten years:
— How to make cities great places to live and work?
— How to care for the entire planet and for each individual,
and how to conduct clinical trials to roll out a vaccine in
less than a year?
— How to design the entire product lifecycle?
— How to make sustainable purchasing choices?
— How to prepare the workforce of the future for the jobs
of the future?
— How to develop new paradigms of scientific observation
and reasoning?
10
In this context, Dassault Systèmes stated that “product is no
longer enough” to build a sustainable economy and opened
up the Experience Economy, centered on product usage.
In 2012,Dassault Systèmes launched the 3DEXPERIENCE, a
platform that provides to companies a real time broad view of
their business and ecosystem. The 3DEXPERIENCE connects
people, ideas, data, and solutions in a unified environment,
allowing companies of all sizes to innovate, produce, and sell
in entirely new ways.
Dassault Systèmes solutions transform the way products
are designed, simulated, produced, marketed and supported,
leveraging the virtual world to improve the real world. The
Company has helped manufacturers disrupt how products
are designed and manufactured – with 3D design, with
3D digital mock‑ups (DMU), with 3D Product Lifecycle
Management (PLM), and now with 3DEXPERIENCE.
In 2020, the Company declared that industry had to shift
“from things to life” and extended Virtual Twin Experiences
to living organisms – including human beings.
Today, as the global Economy is entering a new era, the
Company is pushing this approach further. The Experience
Economy and the Circular Economy are converging into
the Generative Economy and Dassault Systèmes aims to
learning from
catalyze this metamorphosis. It’s about
life: understanding and paralleling
the metamorphic
method magic of life. Learning from life will open up a new
perspective on sustainable innovation.
It is important to remember that virtual worlds were
created to drive sustainable development. The purpose
of the first 3D representations was to replace physical
prototyping, saving raw materials, energy and resources. The
Product Lifecycle Management (PLM) solutions pioneered by
Dassault Systèmes in the early 1990s have helped foster a
circular, more balanced approach within industry. Dassault
Systèmes wants to be the catalyst and enabler of the real
Industry Renaissance of the 21st century and the Generative
Economy. Combining the real and the virtual leads to usher
in new ways of inventing, learning, producing, and doing
business. Achieving a more sustainable future
is only
possible by leveraging the virtual world.
Dassault Systèmes believes that virtual worlds extend and
improve the real world.
is
European
Systèmes
Dassault
science‑based,
a
innovation‑driven, business‑minded and long‑term oriented
company, with a global presence and market reach. The
Company’s more than 23,800 employees in more than 140
countries all share this same mindset. This also translates
into a high level of market confidence and trust among
Dassault Systèmes more than 350,000 customers.
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Dassault Systèmes built its strategy around three words:
‘Human Industry Experiences’.
“Human” means that the Company is focused on the
human being, building on imagination, knowledge and
know‑how to make a lasting contribution for the benefit
of all. “Industry” means that Dassault Systèmes wants to
offer customers what they value the most – a sustainable
outcome. “Experiences” refers to the will to help businesses
and people grow and live in today’s new “New World”.
To achieve this strategy, Dassault Systèmes is focusing on
developing solutions in three main sectors: Manufacturing
Industries, Life Sciences & Healthcare and Infrastructure &
Cities. After modeling the object in its environment, Dassault
Systèmes also wants to model the living.
The Company is rolling out its strategy through strategic
operational components: Brands, Industries and Geographies.
Dassault Systèmes’ Brands create great user experiences
and build vibrant user communities. Industries develop
Solution Experiences,
industry‑focused offerings which
deliver specific value to companies and users in a particular
industry. The eleven Geographies (GEOs) are responsible
Dassault Systèmes’ Purpose
Established in 2012, Dassault Systèmes’ purpose is to
provide business and people with 3DEXPERIENCE universes
to imagine sustainable innovations capable of harmonizing
product, nature and life.
Through this ambition, Dassault Systèmes contributes to the
improvement of society and the quality of the environment.
“Harmonizing product, nature and life” is how to define
sustainable innovation. It is based on the premise that, in
the 21st century, with a global population of nearly 8 billion,
we cannot produce and consume in the same way that we
did in the 20th century. A product cannot be sustainable if
its impact on the environment and on society has not been
thought through. And conversely, product design can be
improved by observing nature and other living creatures.
Dassault Systèmes believes that we should think about
progress in terms of balance: what are we taking from and
giving back to our planet? “Harmonizing product, nature and
life” lies at the heart of the industry of the 21st century –the
primary driver of innovation and the key to both sustainable
enterprise in all sectors of the economy and progress in all
spheres of society.
Since more than a decade, Dassault Systèmes is defined
the 3DEXPERIENCE Company. Dassault Systèmes
as
anticipated that the world would shift from a product‑based
economy to an experience economy that values usage over
the product.
1
1
PresentatIon of the Company
Profile and Purpose of Dassault Systèmes
for making GEOs the driving force for the development of
our business and for overseeing the implementation of our
customer‑centric engagement model.
Dassault Systèmes offers the 3DEXPERIENCE, which is a
platform for knowledge and know‑how. It aims to catalyze
and enable innovation by allowing businesses to connect
the dots within and outside their company, from upstream
thinking to design, engineering, manufacturing, sales &
marketing, all the way to ownership.
The 3DEXPERIENCE platform is a game‑changer in value
creation for organizations because it is the only platform
that offers both a system for running their business and a
business model to transform their businesses. As a system of
operations, the 3DEXPERIENCE platform enables businesses
to improve their operational excellence. As a business model,
it allows them to set up the most innovative value networks.
The 3DEXPERIENCE platform
four
quadrants encompassing thirteen brands. The Company’s
3DEXPERIENCE portfolio
is comprised of 3D modeling
applications, simulation applications, social and collaborative
applications, and information intelligence applications.
is structured
in
The experience economy is not just about “user experience”.
It is about the overall balance and impact of any service we
provide to society. This means seeing industry as a value
creation process for people, rather than the “means of
production”. The industry of the 21st century is a network of
creation, production and exchange of experiences.
In 2012 Dassault Systèmes also dared to imagine that
the 3DEXPERIENCE universes would become the most
powerful vehicle for sustainable innovation. Its platform
has clearly risen to the challenge.
First, it makes it possible to represent hypotheses, which
are then tested and verified against real‑world data, with
the aim of optimizing models within a loop process.
The virtual twin experience is a virtual representation of
the world achieved by combining modeling, simulation,
real‑world data and artificial intelligence. In some ways,
the virtual twin experience can be seen as a library and a
workshop: it represents existing and potential knowledge
and know‑how, and it allows us to create use case scenarios
which are then verified against real‑world data. With the
cloud, all these technologies can be made available to every
kind of organization, business and research lab.
11
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Profile and Purpose of Dassault Systèmes
It is now possible to measure the tangible benefits of these
virtual twin experiences delivered through the platform in
the shift toward a more circular economy. According to a
study led in 2021 by Dassault Systèmes in collaboration
with Accenture, the potential impact of virtual twins on the
climate has been quantified: on the basis of five use case
scenarios, savings of up to 7.5 gigatons of CO2 are possible.
Second, virtual twin experiences rely on collaborative
experience platforms, which have emerged as the key
infrastructure for the 21st century.
Thanks to these platforms, companies like Amazon, Uber
and Airbnb are able to provide new experiences for the
retail, the mobility and the hospitality industry. Next up is
the rest of industry. Platforms make it possible to unify
entire research and production ecosystems, rethink public/
private partnerships, and converge supply and demand. Far
more than just a technology, virtual platforms offer a holistic
approach to innovation and an inspiration for new offerings.
is
innovation
intrinsically
Sustainable
holistic,
multi‑disciplinary, multi‑scale and circular. Tomorrow’s
game‑changers will not be those with the most automated
production systems, but those with the best‑developed
legacy of knowledge and know‑how, whose business
environments involve subcontractors as full‑fledged partners
in value creation. Manufacturers must take a more balanced
approach: reducing their negative impact (footprint) and
improving their positive impact (handprint) across the entire
product lifecycle. This is where platforms really come to
the fore – elevating the role of businesses as sustainability
leaders, sparking creativeness and sharing knowledge and
expertise.
There is an imperative now for manufacturers to consider
the entire
lifecycle of their products: where are the
materials sourced? Is the production process frugal? What
is the impact of the distribution channel? Does the product
have a sustainable end‑use? Can the materials be reused or
repurposed? We must work toward a more decarbonized
and circular economy. This calls for a system of systems
approach, which is today possible using the virtual twin
experiences of value chains, ecosystems and collaborative
platforms.
As it is adopted by new categories of innovators, the
3DEXPERIENCE platform has become the catalyst and
enabler of
today’s global
Industry Renaissance,
transformation that brings new ways of inventing, learning,
producing and trading.
the
The platform encompasses a highly complementary and
resolutely unique scope of scientific disciplines: including
biology, chemistry, materials science, mechanics, and
electromagnetics.
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the virtual
revolutionizes our
Through virtual experiences, augmented reality and realistic
simulation,
relationship
with knowledge, just like the printing press did in 15th
century Europe. The new book is the experience! The
virtual experience adds knowledge and know‑how, while
eliminating the gap between experimentation and learning.
Through the virtual world –today’s library and workshop–
new categories of industrial firms create new categories of
experiences for new categories of customers.
Dassault Systèmes has extended its focus from things to
life.
Since its inception in 1981, Dassault Systèmes has been
instrumental in fostering sustainable innovation for products.
At the same time, our ambition to harmonize product, nature
and life has led us to develop a new understanding of life
and nature. Today, the Company is capable of applying
knowledge and know‑how acquired in the non‑organic world
to the organic – living – world.
While the surface of simple objects is represented with 3D
design, it takes the 3D digital mock‑up (DMU) to represent
not only the surface but also the inside of complex systems.
The 3D product lifecycle management (PLM) integrates
the time dimension. Now, with the 3DEXPERIENCE, we are
representing the use.
In 2020, Dassault Systèmes announced its ambition to
create the virtual twin experience of the human body,
integrating modeling, simulation, information intelligence,
and collaboration. This brings together biosciences, material
sciences and information sciences to project the data from an
object into a complete living virtual model that can be fully
configured and simulated. Industry, researchers, physicians
and even patients can visualize, test, understand, and predict
what cannot be seen – from the way drugs affect a disease
to surgical outcomes – before a patient is treated.
In 2023, Dassault Systèmes led groundbreaking initiatives
for developing virtual twin experiences of the human
body across the entire lifecycle of medical technologies,
demonstrating the Company’s sustained commitment to
revolutionizing healthcare and scientific research. These
included collaborative research publications and visionary
industry
symposia, pioneering medical
and government agencies, and strategic partnerships with
educational institutions:
initiatives with
— the Company held the 9th WW Symposium of Virtual
largest
Human Twin, animating and federating the
vibrant communities on
the fields, with 500+
professionals from pharmaceutical, medical devices,
practitioners, and regulatory bodies to define and
experience new medical twin‑based practices;
— “Living Heart”, “Living Brain” and “TwinOnco” projects
on cardiology, neurology & oncology have been
demonstrating new values as illustrated by the “Digital
Twin” book (Springer, 2023), chapter “Digital Twin for
Healthcare and Life Sciences” co‑signed by Patrick
Johnson (Executive Vice President, Corporate Research
& Sciences) and members from Dassault Systèmes’
Corporate Research and Life Sciences & Healthcare
industry teams;
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Profile and Purpose of Dassault Systèmes
— Dassault Systèmes completed a five‑year collaborative
project with the US Food & Drug Administration (FDA) to
create a playbook on the use of virtual human twins to
accelerate the approval of medical devices;
— the French prime minister has been validating a large
collaborative public/hospital/private program on use of
virtual human twins for healthcare (MEDITWIN) led by
Dassault Systèmes;
— Dassault Systèmes announced an
interdisciplinary
program on theoretical foundations for biology with
Ecole Normale Supérieure, underlining the Company’s
strong commitment to advancing science, technology,
knowledge & know‑how for those communities;
— in the US, Long Island University in New York City
received ABET accreditation for a new undergraduate
Digital Health Engineering Degree, designed to merge
traditional engineering with the virtual twin revolution
and prepare students for the future of healthcare, based
on 3DEXPERIENCE platform.
Today, Dassault Systèmes aims to be the catalyst and
enabler of the Generative Economy, that is emerging from
the convergence of the Experience Economy and the Circular
Economy. This is the Company’s horizon for 2040.
Having shift from things to life, 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”.
It’s about imagining 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… For Dassault Systèmes, “generative” is 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.
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, the Company aims to push its 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, researchers need to understand it in a
more holistic manner. For all this, it is necessary to connect
multiple Virtual Twin Experiences together.
This is the definition of Dassault Systèmes’ UNIV+RSES,
a combination of multiple virtual twins, unifying all
stakeholders, knowledge and know‑how, and virtual and
real.
The IFWE Loop is the Company’s lever in the short and
mid‑term to achieve this strategy. For 40 years, Dassault
Systèmes has powered the spiral of innovation, guiding
innovation from design to manufacturing. Today, as its
most advanced clients already think in terms of lifecycle and
systems of systems, Dassault Systèmes extends this journey
into an infinite loop by seamlessly connecting the virtual and
the real with real‑world data.
In the Generative Economy, it is possible to 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 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 is now
virtualizing the multiple cycles of lives of things.
Doing so, the Company aims to leverage the power of the
numbers to broaden its value proposition and its audiences
reaching all business users, consumers, patients, and
citizens. This will substantially expand its addressable market
and serve as a catalyst for accelerating top‑line growth.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Profile and Purpose of Dassault Systèmes
Dassault Systèmes, a culture of innovation
Dassault Systèmes is a science‑based company geared to
the future and to progress, with many companies among
customers who are pioneers in their field (robotics, energy,
mobility and more). The Company’s values are underpinned
by innovation and a shared ambition to make a lasting,
positive impact on everyone’s lives. This is called, internally,
the IFWE mindset. “IF” refers to the passion to explore new
possibilities and “WE” to the belief that, by connecting
people, we can bring about meaningful change.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
History and Development of the Company
1.3
History and Development of the Company
1.3.1
Summary
in 1981 through the
Dassault Systèmes was founded
spin‑off of a small team of engineers from Dassault Aviation,
which was developing 3D surfacing modeling software to
design wind tunnel models and reduce cycle times for wind
tunnel testing. The Company entered into a distribution
agreement with IBM the same year and started to sell its
software under the CATIA brand. With the introduction of
the Version 3 (V3) architecture in 1986, Dassault Systèmes
laid the foundations of 3D modeling for product design.
Working with large industrial customers was the opportunity
to learn the importance for them to have a software solution
that would support the design of highly diversified parts in
3D. The growing adoption of 3D design for all components
of complex products, such as airplanes and cars, triggered
the vision for transforming the 3D part design process into
a systematic integrated product design. The Version 4 (V4)
architecture was thus created, opening new possibilities
to realize full digital mockups (DMU) of any product.
V4‑architected software solutions helped customers reduce
the number of physical prototypes and substantially shorten
product development cycle times, while making global
engineering a reality as engineers were able to share their
work across the globe virtually.
(PLM) solution.
Introduced in 1999, new Version 5 (V5) software architecture
served as the foundation for a robust 3D product lifecycle
management
In conjunction with the
Company’s strategy and product portfolio development
plans, Dassault Systèmes undertook a series of targeted
acquisitions to expand software applications offering
to
realistic simulation,
product data management and enterprise business process
collaboration.
include digital manufacturing,
Building on its knowledges and know‑how in 3D, 3D
DMU and 3D PLM, Dassault Systèmes unveiled in 2012
the 3DEXPERIENCE platform, designed to support our
customers’ innovation processes and deliver truly new and
rewarding experiences for their end‑users.
In 2020, Dassault Systèmes announced the extension of
3DEXPERIENCE from things to life, with the ambition to
invent the dynamic virtual twin of the human body.
In 2023, Dassault Systèmes unveiled its new horizon, 2040:
catalyzing the Generative Economy, learning from life and
its generative processes to open up a new perspective on
sustainable ways of producing, treating, living and learning.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
History and Development of the Company
1.3.2
Our Timeline
3D Design and 3D Digital mock‑up
1981 – Creation of Dassault Systèmes to design products in
3D through the spin‑off of a team of engineers from Dassault
Aviation.
1981 – The Company’s flagship brand, CATIA, is launched.
1981 – Worldwide marketing, sales and support agreement
with IBM, beginning of a long‑standing partnership.
1981 – Initial industry focus: automotive and aerospace.
1986 – V3 software introduced for 3D Design.
architecture
introduced offering
1994 – V4
a new
technology for creating the full 3D Digital Mock‑Up (“DMU”)
of a product, enabling customers to significantly reduce
the number of physical prototypes and to have a complete
understanding of the virtual product.
1994 – Expansion of the Company’s industry focus to seven
industries, adding fabrication and assembly, consumer
goods, high‑tech, shipbuilding and energy.
1996 – Initial public offering in June.
1997 – Broadening of our 3D Design offer to the entry 3D
market, with the acquisition of the startup SOLIDWORKS,
with Windows‑native architecture, targeting principally the
2D to 3D market migration opportunity.
1997 – Formation of the Company’s Professional channel,
focused on marketing, sales and support of SOLIDWORKS.
1998 – Creation of the ENOVIA brand, focused initially on
management of CATIA product data for larger clients with
the acquisition of IBM’s Product Manager software.
Expanding to 3D product lifecycle management
1999 – Launch of V5 architecture designed for both
Windows NT and UNIX environments.
1999 – Unveiling of an expanded addressable market vision:
3D Product Lifecycle Management (PLM) for 3D design,
simulation analysis, digital manufacturing and product data
management.
to product data
1999 – ENOVIA’s portfolio expanded
management for the small and mid‑sized companies (“SMB”)
market with the SmarTeam acquisition.
2000 – Creation of the DELMIA brand, initially addressing
digital manufacturing (digital process planning, robotic
simulation and human modeling technology).
2005 – Creation of the SIMULIA brand, addressing realistic
simulation, representing a significant expansion of the
Company’s simulation capabilities to leverage the acquisition
of Abaqus.
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2005 – Creation of the Company’s Value Solutions sales
channel, an
focused on
indirect channel specifically
supporting SMB companies, including suppliers to OEMs.
This channel rounded out Dassault Systèmes’ other indirect
channel, the Professional channel, which is focused on
SOLIDWORKS users.
2006 – Expansion of the ENOVIA portfolio with the
acquisition of MatrixOne, a global provider of collaborative
PDM software and services.
2007 – Amendment of the IBM partnership agreement,
outlining the Company’s progressive assumption of full
responsibility for the Value Solutions channel.
2007 – Creation of the 3DVIA brand, to bring 3D technology
to new users to imagine, communicate and experience in 3D.
2007 – CATIA offer extended with ICEM acquisition, a
company well known in the automotive industry for its
styling and high‑quality surface modeling and rendering
solutions.
2008 – Unveiling of the Company’s V6 architecture.
2010 – The Company acquired full control of our distribution
sales channels with the acquisition of IBM PLM, the IBM
business unit dedicated exclusively to the marketing, sale
and support principally of our CATIA, ENOVIA and DELMIA
brands.
2010 – Acquisition of Exalead, providing a new class of
search‑based applications for collaborative communities to
imagine better user experiences.
2011 – DELMIA’s offering expands with the acquisition
of
Intercim, offering manufacturing and production
management software for advanced and highly regulated
industries.
2011 – 100% of the Company’s total revenues are derived
from its wholly‑directed three sales channels, completing
the transition from IBM begun in 2005.
Expanding to 3DEXPERIENCE
of
2012 – Expansion
to
3DEXPERIENCE along with our purpose: harmonize product,
nature and life. See paragraph 1.2 “Profile and Purpose of
Dassault Systèmes”.
Company’s
strategy
the
2012 – Creation of a new brand, GEOVIA, dedicated to
modeling the planet. focus on a new industrial sector,
Natural Resources, with the acquisition of Gemcom in the
mining sector.
2012 – Acquisition
intelligent
dashboarding capabilities, and SquareClock, providing
cloud‑based 3D space planning solutions.
of Netvibes, bringing
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 2012 – 3DEXPERIENCE
introduction of the Company’s first
Experiences.
launch
announcement
and
Industry Solution
2013 – Unveiling of V6 Release 2014, available to select
customers, on premise as well as Software as a Service
(SaaS), featuring the controlled availability of existing and
new
industry‑focused and user‑focused offerings and
the introduction of a new navigational user interface, the
3DEXPERIENCE platform.
2013 – Broadening of
the Company’s manufacturing
offerings to Manufacturing Operations Management with
the acquisition of Apriso.
2014 – Introduction of 3DEXPERIENCE R2014x, the first
release of the Company’s new 3DEXPERIENCE platform,
offering end‑to‑end and integrated scientific, engineering,
manufacturing and business capabilities and services, with
the V6 architecture as its foundation.
2014 – Creation of a new brand, 3DEXCITE, with the
acquisition of Realtime Technology AG (“RTT”) providing
professional high‑end 3D visualization software, marketing
solutions and computer‑generated
imaging services to
extend the Company’s offerings to marketing professionals.
2014 – Creation of a new brand, BIOVIA, principally
the
addressing science‑ based
acquisition of Accelrys and
internal
developments.
industries, combining
the Company’s
2014 – Quintiq acquisition
optimization.
in operations planning and
2015 – Introduction of 3DEXPERIENCE R2015x, offering
a simplified and improved user experience, with powerful
enhancements that significantly increase productivity on
premise as well as on public or private cloud. In addition,
R2015x introduces groupings of applications called “roles”, to
cover industry‑specific user needs.
2015 – Legal transformation of Dassault Systèmes from
a French public limited company (société anonyme) to a
European company (Societas Europaea, SE). The adoption
of the status of European company reflected the Company’s
international dimension and growing presence throughout
Europe.
2015 – CATIA’s capabilities were expanded to further
enhance its coverage of complex mechatronics systems
engineering, with the acquisition of Modelon GmbH,
an expert in “ready‑to‑experience” content for systems
modeling and simulation, which are strategic to transforming
the Transportation & Mobility industry.
2016 – Introduction of 3DEXPERIENCE 2016x.
2016 – Extension of SIMULIA’s multi‑physics, multi‑scale
offer with the acquisition of CST, a technology leader in
electromagnetic simulation, and the addition of Next Limit
Dynamics, bringing capabilities
in computational fluid
dynamics simulation.
2016 – Expansion
DELMIA’s
the
manufacturing portfolio with the acquisition of Ortems,
focused on production planning and scheduling.
Company’s
of
PresentatIon of the Company
History and Development of the Company
2016 – Acquisition of full ownership of 3D PLM Software
Solutions Ltd (3DPLM), our joint venture in India with
Geometric Ltd.
2017 – Dassault Systèmes entered into a new, extended
partnership with The Boeing Corporation. Boeing will
expand its deployment of our products across its commercial
aircraft, space and defense programs. Boeing will be
adopting Dassault Systèmes’ 3DEXPERIENCE platform for
Manufacturing Operations Management and for Product
Lifecycle Management and extending its usage of our design,
engineering simulation and digital manufacturing software.
of Dassault Systèmes’
2017 – Extension
simulation
capabilities with the acquisition of Exa Corporation for highly
dynamic fluid flow analysis, a complex simulation critical to
designers and engineers at more than 150 leading companies
including Transportation and Mobility, as well as Aerospace
and Defense, Natural Resources, and other industries to
evaluate highly dynamic fluid flow throughout the design
process.
2017 – Extension of CATIA’s Marine and Offshore industry
capabilities with the acquisition of AITAC B.V., where its
“Smart Drawings” software application is used to automate
the creation of drawings.
2017 – Strengthening
the management of our cloud
resources and services, increasing our interest in Outscale to
a majority stake, a global provider of enterprise‑class cloud
services. Founded in France in 2010, Outscale is an ISO/
IEC 27001:2013 security certified company that provides
enterprise‑class cloud computing
infrastructure services
(IaaS) to customers through its ten data centers in Europe,
North America and Asia.
2018 – Power’By launch as part of 3DEXPERIENCE R2018x
and introduction of the 3DEXPERIENCE Marketplace. The
objective of Power’By is to enable all customers to benefit
from the 3DEXPERIENCE platform’s value
immediately
without any need for migration of legacy data. There are
three levels: to enable social collaboration; to leverage hybrid
data for product configuration and bill of materials; or to use
the full capabilities of the 3DEXPERIENCE platform.
2018 – Acquisition of majority ownership of Centric
Software, a PLM specialist for the fashion, apparel, luxury
and retail sectors. With this investment, Dassault Systèmes
aims to accelerate the digital transformation of companies
seeking solutions for the increasingly complex development
of collections that respond to on‑trend and on‑demand
consumers.
2018 – Acquisition of No Magic – a global solutions company
focused on model‑based systems engineering, architecture
modeling for software, system of systems and enterprise
business processes modeling – strengthening our CATIA
applications. This provides a “single source of truth”, allowing
any user within a company to implement continuous 3D
digital processes and address all lifecycle aspects of an
experience.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
History and Development of the Company
2018 – Acquisition of Cosmologic, a developer of fluid phase
modeling software.
2019 – Acquisition of
leading manufacturing
IQMS, a
ERP software company. Dassault Systèmes extends
the 3DEXPERIENCE platform to small and mid‑sized
manufacturing companies seeking to digitally transform
their business operations. IQMS provides all‑in‑one solutions
to optimize engineering, manufacturing and business
processes.
2019 – The acquisition of Argosim strengthens Dassault
Systèmes’ simulation and modeling portfolio for embedded
systems.
2019 – Acquisition of Elecworks, the suite of CAD software
developed by Trace Software, to better respond to the
challenges posed by electrical product design and
in
particular to develop smart products for the high‑tech,
equipment and energy industries.
leader
2019 – Acquisition of MEDIDATA, the world
in
clinical testing. MEDIDATA’s clinical expertise and cloud
solutions enable development and marketing of smarter
therapies. With this acquisition, the Life and Health Sciences
industry is now the second largest source of revenue for
Dassault Systèmes, putting it at the forefront of the virtual
transformation of life sciences for a new era in personalized
medicine and patient‑centered care.
2019 – Acquisition
market‑leading meshing software.
of Distene,
the
developer
of
2019 – Launch of the 3DEXPERIENCE WORKS family of
applications aimed at small and mid‑sized companies,
bundling SOLIDWORKS, DELMIAWORKS, ENOVIAWORKS
and SIMULIAWORKS.
From things to life
in
2020 – Acquisition of PROXEM, a firm specialized
semantics software and services bases on artificial
intelligence, to strengthen the collaborative data science
capabilities of the 3DEXPERIENCE platform.
2020 – Acquisition of NuoDB, a cloud‑native distributed
leader, to advance Dassault Systèmes’
SQL database
3DEXPERIENCE platform cloud and data science strategy.
INTEROPSYS SAS
2021 – Acquisition of
(Iterop), a
Business Process Management firm. Integration with the
3DEXPERIENCE Platform and 3DS OUTSCALE is aimed
bringing innovation to within everybody’s reach via the
cloud.
2021 – “Together”, Dassault Systèmes’ first employee
shareholding plan launched for approximately 98% of the
workforce.
2021 – Dassault Systèmes joins the European Green Digital
Coalition as a founding member.
2021 – Approval by the Science‑Based Targets initiative
(SBTi) of Dassault Systèmes’ GHG reduction targets and
publication of our strategic roadmap to become carbon
neutral.
2021 – Contract with Renault for the global deployment of
our 3DEXPERIENCE Platform on the cloud, as part of the
group’s “Renaulution” strategic plan.
2021 – Acquisition of a majority stake in Bloom, an artificial
intelligence (AI) platform dedicated to qualitative, predictive
and strategic analysis of social networks. The investment is
coupled with a strategic partnership that will enable Dassault
Systèmes to deliver combined offerings.
2022 – MEDIDATA expands and strengthens decentralized
clinical trial capabilities through groundbreaking partnership
with Circuit Clinical.
2022 – Inria and Dassault Systèmes form strategic alliance
for a European Digital Trusted Platform.
2022 – Dassault Systèmes introduces Life Cycle Assessment
solution on the 3DEXPERIENCE platform to transform the
sustainable innovation process.
2022 – Global beauty
implements
Dassault Systèmes’ Manufacturing solutions worldwide as
consumers’ push for skincare and wellness.
company Shiseido
2022 – Dassault Systèmes, the H. Hartmann Institute and
the Institute Rafaël launch the VORTHEx project, the world’s
first 3D simulator for radiotherapy.
2022 – Dassault Systèmes extends agreement with Hyundai
Motor by five years.
2022 – Dassault Systèmes acquires DIOTASOFT, bringing
augmented reality and field control technology to
its
Manufacturing and Operations customers.
2022 – Docaposte, Dassault Systèmes, Bouygues Telecom
and Banque des Territoires sign alliance to offer the reference
solution for trusted cloud services.
2022 – Dassault Systèmes announces
its new 3DS
OUTSCALE brand as the leading sovereign and sustainable
operator of trusted Business Experience as a Service.
2022 – Dassault Systèmes and Ecole Normale Supérieure
Paris‑Saclay sign MoU to boost virtual twin knowledge and
know‑how.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
History and Development of the Company
Virtual twin experiences for a sustainable world
2023 – Renault Group and Dassault Systèmes develop a new
data science solution to optimize vehicle costs.
2023 – MEDIDATA drives diversity in clinical trials, passing
30,000 studies and 9 million participants.
2023 – Dassault Systèmes’ second employee shareholding
plan launched for approximately 99% of the workforce.
2023 – UK Atomic Energy Authority to develop fusion
energy plant with Dassault Systèmes’ 3DEXPERIENCE
platform.
2023 – Dassault Systèmes
its Business
Experience for Finance offering by integrating the Innova
regtech solution.
strengthens
2023 – Launch Therapeutics selects MEDIDATA AI Intelligent
Trials to accelerate clinical trial development.
2023 – Dassault Aviation and Dassault Systèmes partner to
bring secure, sovereign collaboration on the cloud to next
generation defense programs.
2023 – Centric Software acquires AI‑powered predictive
pricing solution, aifora.
2023 – Dassault Systèmes
its
partnership with Jaguar Land Rover (JLR) for a 5‑year
period, reaching a new milestone in the usage of the
3DEXPERIENCE.
renews and expands
2023 – MEDIDATA and the National Cancer Institute extend
their longstanding partnership for an additional five years to
advance cancer research.
2023 – 3DS OUTSCALE becomes the first Cloud qualified
with SecNumCloud 3.2, the highest distinction in France and
Europe addressing the challenges of security and sovereignty
delivered by ANSSI.
2023 – BMW Group partners with Dassault Systèmes to
bring the 3DEXPERIENCE platform to its future engineering
platform.
For further information on acquisitions over the last three
years, see paragraph 1.5.4 “Investments” below.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Business Activities
1.4
Business Activities
› Dassault Systèmes’ Corporate Model*
*
The Business Model.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 1.4
Business Activities
› Dassault Systèmes’ Corporate Model*
PresentatIon of the Company
Business Activities
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Business Activities
The methodology used to represent the resources Dassault
Systèmes deploys and the shared value for society that it
creates is the Integrated Reporting Framework proposed
by the Value Reporting Foundation (now part of the
International Sustainability Standards Board). The Integrated
Reporting Framework presents this stakeholder value
creation process according to the five relevant “Capitals”
for our sector: Intellectual, Human, Social, Financial, and
Natural.
1.4.1
Dassault Systèmes
1.4.1.1
The Company’s strategy: Human
Industry Experiences
fulfill
the ambition
To
innovation
encapsulated in its corporate purpose, Dassault Systèmes’
strategy is to focus on Human Industry Experiences.
for sustainable
“Human” means that our ultimate ambition and primary
resource are one and the same – human beings. Dassault
Systèmes builds on imagination, knowledge and know‑how
to make a lasting contribution for the benefit of all. The
Company firmly believe that the greatest value of virtual
worlds lies in the potential it offers for imagining the future,
much more than exponential computing capability. Dassault
Systèmes is also convinced that tomorrow’s leaders will not
be those with the most automated production systems, but
those with the best‑developed legacy of knowledge and
know‑how, whose business environments involve suppliers
as full‑fledged partners in value creation.
“Industry” is about offering what customers value the
most, that is to say creating the knowledge and know‑how
needed to closely match the needs of the industries
served by Dassault Systèmes. To succeed in the experience
economy, it is no longer enough to be an expert in a specific
technology or production method. We need to be an expert
in experience, in other words have a deep understanding of
usages. The “customer’s world” is what Dassault Systèmes
calls “Industry”. Customers do not expect their supplier
to provide a technology but rather that this technology
helps their organization grow and move forward. To meet
those challenges, Industry Solutions are proposed on the
3DEXPERIENCE Platform that are tailored for each of the
industries served.
“Experiences” mean that Dassault Systèmes aim to help
businesses and people build and live in today’s new “New
World”. The 20th century was the century of products; today,
it is the experience economy. The usage holds more value
that the object itself. This phenomenon is poised to touch all
sectors of the economy – from the very nature of offerings
to the buying decision – and all areas of everyday lives, both
at home and in the workplace.
22
To deliver on this Human Industry Experiences strategy,
Dassault Systèmes will focus on developing its leadership
in three strategic sectors of the economy: Manufacturing
Industries, Life Sciences & Healthcare and Infrastructure &
Cities.
These sectors share similar development processes and
sustainability needs in their efforts to improve quality of
life, whether through more affordable and precise therapies,
optimized infrastructures, or better use of the environment.
1.4.1.2
Strategic operational elements
Dassault Systèmes is rolling out its strategy through its
Strategic Operational Elements: Brands, Industries and
GEOs.
Brands
Dassault Systèmes’ Brands create great user experiences
and build vibrant user communities. With thirteen brands,
powered by the 3DEXPERIENCE platform, the Group has the
broadest portfolio of software applications in the market.
Dassault Systèmes brands are organized into applications
families:
— social and collaborative applications: 3DEXCITE, CENTRIC
PLM, ENOVIA;
— 3D modeling applications: SOLIDWORKS, CATIA, GEOVIA,
BIOVIA;
— simulation applications: SIMULIA, DELMIA, 3DVIA;
— information
MEDIDATA;
intelligence
applications: NETVIBES,
— infrastructure for business experiences: 3DS OUTSCALE.
Sectors
Dassault Systèmes’ Industries develop Solution Experiences,
industry‑focused offerings which deliver specific value
to companies and users in a particular industry. Dassault
into three
Systèmes serves twelve
sectors: Manufacturing
(Transportation &
Mobility; Aerospace & Defense; Marine & Offshore; Industrial
Equipment; High‑Tech; Home & Lifestyle; Consumer
Packaged Goods – Retail) – Life Sciences & Healthcare –
Infrastructure & Cities (Infrastructure; Energy & Materials;
Architecture; Engineering & Construction; Business Services;
Cities & Public Services).
industries grouped
Industries
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Business Activities
GEOs
the Company’s business and
Eleven GEOs are responsible for driving the development
of
its
customer‑centric engagement model. Teams leverage strong
network of local customers, users, partners, and influencers.
implementing
Theses GEOs are structured into three groups:
— the “Americas” group, made of two GEOs;
— the group named “Europe”, comprising Europe, Middle
East and Africa (EMEA) and made of four GEOs;
— the group named “Asia”, comprising Asia and Oceania
and made of five GEOs.
1.4.1.3
Dassault Systèmes’ Key
Competitive Strengths
Dassault Systèmes, a world leading player in industry
transformation, has unique assets to sustain a long‑term
growth. Dassault Systèmes is setting the trend in the
transformation of the global industry: on the one hand, by
offering experiences rather than just products, and on the
other hand, with increasing attention to the sustainability
of these experiences. By creating virtual universes and
mirroring the capacity of the living world to reinvent itself,
Dassault Systèmes enables its clients to develop experiences
that place the human at the center, foster positive ecobills
and circularity.
Dassault Systèmes is a science‑based company. It is
positioned at the heart of the Industry Renaissance by
combining art, science and technology for a sustainable
society.
to “harmonize products,
is
The company’s purpose
nature and life”. Its distinctive DNA gives it the ability to
scientifically model and accurately represent the world
through a multidisciplinary, multiscale approach. Built on
the notion of “virtual twin experience”, Dassault Systèmes’
Industry Solutions Experiences portfolio relies on a deep
understanding of industrial processes.
Dassault Systèmes has acquired its longstanding leadership
position (1) through an ability to define new markets and
create new offers, expanding from 3D design and 3D
digital mock‑ups to product lifecycle management and now
3DEXPERIENCE. This market leadership is underpinned
by a clear and strong commitment to innovation in all its
forms, either internally at Dassault Systèmes or with its
customers and their ecosystems.
Dassault Systèmes therefore invests substantially in R&D,
with a long‑term view. Important areas of investment in R&D
include the 3DEXPERIENCE business platform architecture,
for
for
intelligence
technologies
modeling technologies (3D, systems engineering, natural
resources and biosystems),
realistic
simulation of products, production processes and usage,
technologies
(artificial
intelligence, optimization, big data analytics, with a notable
focus on healthcare), and connectivity technologies (for
social or structured collaboration and program management
& compliance). The Company’s R&D efforts consistently aim
to deliver breakthrough user experiences and expand the
usage domain through immersive experiences, native cloud
and mobility solutions.
information
Dassault Systèmes’ long‑term vision is supported by a solid
financial model with a high level of recurring software
revenue.
investing
leadership
requires such a
Keep sustainable market
long‑term vision achieved by
in people and
maintaining a long‑term financial model. The Company has
a diverse, highly educated workforce, which at of the end of
2023 totaled 23,811 employees from 142 countries, up 5.7%
compared to 2022. Its financial model, with a high level of
recurring software revenue (representing 80% of total non‑
IFRS software revenue in 2023), has enabled to maintain and
indeed increase investments in R&D and customer support.
The significant level of diversification of Dassault Systèmes
revenue across
industries and eleven GEOs
supports our robust and sustained growth, even unstable
macroeconomic times.
twelve
Dassault Systèmes’ 3DEXPERIENCE software applications
have been integral to our success and continue to be the
principal areas of investment through internal research and
development and selective acquisitions.
The 3DEXPERIENCE portfolio is comprised of 3D modeling,
simulation, social and collaborative applications, and
information
intelligence applications. One of the key
objectives is to create a portfolio of brands that are leaders
in their respective markets (see paragraph 1.4.2.3 “Our
Software Applications Portfolio”). In support of its “Human
Industry Experiences” strategy, Dassault Systèmes portfolio
architecture is designed to create value at three levels
through the generation of virtual universes: Solutions for the
Company, Processes for the organization or team, and Roles
& Apps for each user.
Dassault Systèmes thus contributes to the transformation
of industries by creating new jobs for the workforce of the
future, notably around its “3DEXPERIENCE Edu” initiatives.
Dassault Systèmes has a diverse customer base in terms
of size and geographic origin, from small companies in the
world to global leaders and disruptors who are redefining
their industry in the 21st century.
(1) Dassault Systèmes evaluates its competitive positioning based on third‑party studies (D&B, Oxford Economics, Omdia, IDC, Gartner).
1
1
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Business Activities
The Company distributes its products through direct and
indirect sales channels, working with commercial partners.
Dassault Systèmes has forged a strong and vibrant
ecosystem of commercial and software development
partners, technology and education institutes, research
bodies and systems
integrators. Dassault Systèmes
also supports a wide ecosystem of startups through the
“3DEXPERIENCE Lab”, an open innovation facility focused
on accelerating disruptive, sustainable innovation.
Since its inception in 1981, Dassault Systèmes has worked
in close partnership with other professionals in software
development and technology, in sales and marketing, in
services and in education and research. More recently,
relationships have been extended with systems integrators
offering strong industry expertise and regional presence for
both sales and services. This pool of commercial partners,
from value‑added resellers to system integrators (VARs &
CSI), brings together a total of more than 14,000 people.
Moreover, the Company has an extensive ecosystem of
more than 400 software development partners building
applications to complement its software portfolio. With its
sights on the future, Dassault Systèmes is working closely
with academic, research and medical organizations around
the world to equip students with a learning environment
augmented by virtual technologies.
1.4.1.4
Growth Strategy
Based on
its 3DEXPERIENCE platform and software
portfolio, Dassault Systèmes estimates that the current
total addressable market (TAM) in the software domain is
approximately $45 billion, based on external data. Dassault
Systèmes benefits from large levers for further growth
with a potentially accessible market (PAM) of around
$100 billion. This addressable market is split across the
three main economic sectors served by Dassault Systèmes:
Manufacturing Industries (around $25 billion TAM), Life
Sciences and Healthcare (around $10 billion TAM), and
Infrastructure & Cities (around $10 billion TAM).
Dassault Systèmes is developing its business through several
growth drivers, notably:
— the 3DEXPERIENCE platform:
it brings
together
applications and communities in a single environment to
create and operate end‑to‑end product experiences, from
the creation of these products to their operation in the
real world. The platform is the hub of innovation for the
company deploying it and beyond, connecting customers
and partners in virtual universes. The platform is also the
preferred channel for the relationship between Dassault
Systèmes, its customers and the entire ecosystem,
enabling it to capitalize on and accelerate the customer
experience;
— progressive adoption of the Cloud, protection of
know‑how and sovereignty: the Cloud enables gains in
deployment speed, continuous improvement of solutions,
collaboration capabilities across businesses or on the go.
It also allows for the implementation of value‑added
services for our clients’ virtual twins. However, Dassault
Systèmes’ clients are shaping the world of tomorrow and
want to protect their know‑how in a complex geopolitical
landscape. Dassault Systèmes is committed to investing
continuously to offer its clients the combination of Cloud
performance, security, and sovereignty;
— the transition to subscription models: the gradual
adoption of the Cloud and the flexibilities offered by
increasing
subscription models are encouraging an
number of Dassault Systèmes’ clients to opt for
subscriptions. This accelerates the adoption of Dassault
Systèmes’ experiences and drives innovation forward;
— industry diversification: Dassault Systèmes is constantly
working to expand its presence in each of its twelve
target industries, in particular through the coverage
of new sub‑segments. For further information, see
paragraph 1.4.2.1 “Industries and Customers”;
— domain diversification beyond product
innovation:
Dassault Systèmes continues to invest in expanding the
coverage of each of our brands and in broadening their
respective bases. Starting from a history of serving
research and engineering teams, Dassault Systèmes
constantly introduces new solutions to new communities
of users engaged in the marketing, production, operation,
and circularity of the products, services, and experiences
of its clients. These new communities bridge the gap
between the virtual world of innovation and the real
world of operations and experience. Virtual twins thus
become the universal medium for these communities
gathered in virtual universes. For further information, see
paragraph 1.4.2 “Dassault Systèmes’ offering”;
— capitalization of knowledge and know‑how: Dassault
Systèmes enables its clients to combine modeling, data
analysis, and artificial intelligence to capitalize on and
reuse their knowledge and know‑how. In the virtual
world, the combination of models and data allows for the
exploration of possibilities, for enabling decision‑making
in complex environment, with the certainty of the
relevance and reliability of solutions for the real world;
— sustainable innovation for industry: through its support
for customers in developing sustainable innovations,
Dassault Systèmes continues to enrich its solutions to
enable all industries to minimize the impact of their
products, services, and experiences, and to facilitate
product and material circularity;
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Business Activities
— geographic diversification: Dassault Systèmes has
active customers in 156 countries and has identified
its presence and expand
opportunities to step up
its global footprint through eleven
regional field
organizations designed to prioritize and drive the
Company’s growth initiatives at the local level and stay
closely aligned with customers’ needs;
— acquisitions expanding
the addressable market:
Dassault Systèmes acquisition policy is in line with
its purpose and strategy. The Group seeks potential
acquisitions that expand the domain expertise of its
its
brands, enhance its industry offering and address its
customers’ growing needs. Dassault Systèmes also
solutions developments
complements
through
further
key
information, see paragraphs 1.4.2 “Dassault Systèmes’
offering,” 1.5 “Research and development” and 1.5.4
“Investments”.
acquisitions. For
selected
internal
For a description of the challenges that must be met to
maintain growth, see paragraph 1.9.1 “Risks Related to the
Business.”
1.4.2
Dassault Systèmes’ Offering
1.4.2.1
Industries and Customers
The 3DEXPERIENCE platform – combining applications,
content and services – help companies to develop innovative
solutions for final users.
Dassault Systèmes has a diversified client base, comprised
of global leaders, mid‑market companies, small companies
and startups, and also includes government and educational
institutions, establishing a long term relationship which
translates into an average length collaboration of more
than 25 years with its 20 main clients. Its market strategy
is industry‑based (Manufacturing Industries, Life Sciences
& Healthcare, and Infrastructures & Cities) with a very close
proximity to customers and offers adapted to its industries,
which are themselves divided into market segments.
SECTOR/Industry
Market Segments Addressed by Dassault Systèmes
MANUFACTURING INDUSTRIES
Transportation & Mobility
Aerospace & Defense
Marine & Offshore
Industrial Equipment
High‑Tech
Home & Lifestyle
Consumer Packaged Goods – Retail
LIFE SCIENCES & HEALTHCARE
Cars & Light Trucks OEMs, Racing Cars, Motorcycles, T&M Industry Suppliers, Trucks
& Buses, Trains, Mobility Services
Commercial Aviation, Aerospace & Defense Suppliers, Propulsion, Defense, Air
Transportation, Space
Naval Shipyards, Commercial Shipyards, Offshore, Yachts & Workboats, Marine
Suppliers, Marine & Offshore Specialists
Industrial Robots, Machine Tools & 3D printers, Specialized Manufacturing Machinery,
Heavy Mobile Machinery & Equipment, Building Equipment, Power & Fluidic Equipment,
Fabricated Metal & Plastic Products, Tire Manufacturers, Professional Services
Consumer Electronics, Security, Control & Instrumentation, Computing, Software
& Communications, Contract Manufacturing Services, Technology Suppliers,
Semiconductors, Telecom & Media Operators
Furniture & Home Goods, Sports & Leisure Goods, Fashion & Luxury Goods, Specialist
Retailers
Food & Beverage, Beauty & Personal Care, Household Products, Packaging, General
Retailers
Life Sciences & Healthcare
Pharmaceuticals & BioTechs, Medical Devices & Equipment, Patient Care
INFRASTRUCTURE & CITIES
(AT JANUARY 1, 2023)
Infrastructure, Energy & Materials
Architecture, Engineering
& Construction
Business Services
Cities & Public Services
Mining, Metals & Minerals, Oil & Gas, Chemicals, Power, Civil & Transportation
Infrastructure
Utilities, Building & Facilities, Construction Products & Services, Agriculture & Forestry
Banking & Insurance, Rail Freight, Postal, Express & Air Cargo, Sea Freight & Integrated
Logistics
Cities & Territorial Authorities, Public Contractors, Public Funded Centers of
Innovation, Education
1
1
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
experience platforms
Virtual
industry, urban
development and healthcare are the infrastructures of the
21st century.
for
Today, the sustainable innovation model is predicated on
creating holistic experiences. Only by connecting all the
dots between people, ideas, and data can a business create
differentiating customer experiences and drive consumer
loyalty, engagement, and value.
Dassault Systèmes offers both a fresh approach to innovation
by connecting R&D, engineering, production, marketing and
end‑users, and an innovative business model directly linking
sellers and buyers, purchasers and subcontractors, service
providers and end‑customers.
The 3DEXPERIENCE platform enables businesses to
enhance their operational excellence; and helps them create
the most innovative value networks.
1
PresentatIon of the Company
Business Activities
The breakdown of our non‑IFRS software revenue in 2023 by
our three sectors was as follows: Manufacturing Industries
69%, Life Sciences & Healthcare 23% and Infrastructure
& Cities 8%. Within the Manufacturing Industries sector,
main industries were Transportation & Mobility, Industrial
Equipment, Aerospace & Defense representing respectively
24%, 17% and 13% of our non‑IFRS software revenue in
2023. In 2023, Dassault Systèmes has made around 5% of
its revenue with customers within the Defense industry.
1.4.2.2
3DEXPERIENCE platform
Dassault Systèmes’ 3DEXPERIENCE platform catalyzes and
fuels innovation, enabling businesses to connect the dots
within and outside a Company, from upstream thinking to
design, engineering, manufacturing and sales & marketing,
all the way to ownership.
26
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT The 3DEXPERIENCE platform is a platform for knowledge
and know‑how, a game‑changing collaborative environment
that empowers businesses and people to innovate in entirely
new ways.
— Digital experience platforms
industry, urban
development and healthcare are becoming critical to
operate a business. They have already transfigured the
retail, transportation and hospitality industries, and are
now set to transform all industries;
for
Dassault Systèmes builds on the 3DEXPERIENCE platform
to offer an entire universe of experiences to connect
people, business and ideas.
First, through 3DS OUTSCALE, a Dassault Systèmes’ brand
and a strategic sovereign cloud operator, the Company
offers cyber governance declined in three levels:
— Dedicated Cloud: a cloud dedicated
collaboration in the customer’s space;
to sovereign
— Sovereign Cloud: a sovereign trusted cloud for trusted
collaboration within a common legal and fiscal space;
— International Cloud: an international cloud for secure
collaboration.
Then, Dassault Systèmes provides Platform As a Service
(PaaS) and Software as a Service (SaaS) to empower people
to manage and transform their business.
As a system of operations, the 3DEXPERIENCE platform
innovate and operate with
enables businesses
operational excellence, from
idea to modeling and
simulation to market delivery and usage.
to
PresentatIon of the Company
Business Activities
— Creating experiences is a complex process, requiring
diverse knowledge and know‑how, and connecting
the dots between people, ideas, and data – inside and
outside the company – between complex interconnected
systems;
— Tomorrow’s game changers will be those that empower
the workforce of the future with the best knowledge
and know‑how assets and not those with the most
automated production systems.
1
1
It empowers everyone by embracing and extending their
skills and knowledge, connecting people, teams and
businesses. It allows everyone involved in an innovation
project – from the research lab to the factory to the
consumer – to interact and work together. As a result,
it empowers
innovators to design and test consumer
experiences, before actually producing them. With such a
comprehensive approach, the Company delivers value to
3 audiences:
— for company performance and
innovation: Industry
Solution Experiences;
— for efficient teams: Industry Process Experiences;
— for champion users: Roles.
Finally, Dassault Systèmes provides Experience as a
Service, where the outcome and the content are the value:
— Business
experiences
ready‑to‑use working
are
environments tailored for specific business activities,
leveraging & integrating specific knowledge & know‑how;
— Business Experiences allow businesses to transform
relationships and roles across their value network.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Business Activities
1.4.2.3
Software Applications Portfolio
3DS Brands by quadrants of the Compass.
Symbolized by the Compass, the 3DEXPERIENCE platform
is structured into four quadrants.
3D Modeling Applications
SOLIDWORKS – Authentic Design Experience
SOLIDWORKS is focused on providing powerful yet simple
and easy‑to‑use 3D product development solutions
accessible to all innovators, from students to makers to
professionals. These solutions enable clients to innovate
and streamline their design processes. By augmenting
SOLIDWORKS with the 3DEXPERIENCE platform services,
businesses have new ways to create, collaborate, and
innovate.
Focused on delivering powerful design experiences,
the expanded portfolio that also includes SOLIDWORKS
browser‑based and mobile‑ready solutions bring leading
edge capabilities, such as artificial intelligence, machine
learning and generative design, to every designer.
CATIA – Shape the World We Live in
CATIA is the leading solution (1) spanning the complete
innovation and development processes – from vision to
certification – to imagine, design, simulate and operate
sustainable products and systems.
CATIA shifts traditional 3D CAD (computer‑aided design)
expectations to cognitive‑augmented design. Leveraging
knowledge, know‑how and proven technology to automate
design and systems engineering combined with modeling,
simulation, and AI, CATIA wants to provide AI‑driven
Generative Experiences to all its users.
The brand offers a differentiating approach to Generative
AI to solve industry challenges based on fine‑tuned models
trained on industry‑specific datasets and models coming
from knowledge and know‑how of industry processes.
CATIA provides an intuitive user experience, powered by
3D, Web services, as well mobile and augmented reality
technologies to collaborate virtually, and empowering
co‑design experiences. Lastly, through its cyber‑physical
systems modeling and simulation capabilities, CATIA is
integral to 3DEXPERIENCE‑based Industry Solutions for
model‑based systems engineering, enterprise architecture,
concept modeling and system simulation.
These solutions enable global industry leaders to act as game
changers in key sectors like Manufacturing Industries, where
85% of Electric Vehicles, or in Infrastructure & Cities, where
80% of new nuclear projects, are using CATIA solutions.
GEOVIA – Model the Sustainable Planet
GEOVIA provides end‑to‑end digital solutions focusing on
the intersection of natural resources, infrastructure and
urban planning. The Brand empowers a diverse community
of geoscientists, earth engineers, and urban planners to
access the information and insights they need to make
informed decisions that balance economic, environmental,
and social considerations, ensuring the responsible use and
development of the earth’s resources.
As part of the 3DEXPERIENCE platform, GEOVIA makes
it possible to create virtual twins of the Earth’s surface,
subsurface and infrastructure that enable users to analyze
and visualize the impacts of their decisions through a
dynamic and comprehensive view of assets and processes,
helping to improve operational efficiency and optimize
resource utilization through real‑time monitoring, predictive
analytics, and continuous improvement.
True to its mission to democratize 3D design, SOLIDWORKS
continues to empower its passionate community: Millions
of students, educators, makers, professionals and life‑long
learners who create cutting‑edge products and develop
countless world‑changing innovations.
GEOVIA is driven by a vision to model a sustainable future
where technology, knowledge and know how play a
crucial role
in promoting responsible natural resources
management, improving the quality of life for all people, and
safeguarding the planet for generations to come.
(1) Dassault Systèmes evaluates its competitive positioning based on several third‑party studies (D&B, Oxford Economics, Omdia, IDC, Gartner).
28
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Business Activities
DELMIA – MAKE It Happen
A key feature of Dassault Systèmes’ 3DEXPERIENCE
platform is the connection between the virtual and real
worlds. Operational excellence requires harmonized design,
production, distribution, human resources management
and processes. DELMIA enables global industrial operations
to design and test the manufacturability of products in a
simulated, virtual environment; optimize the supply chain;
and operate factories, warehouses and distribution to
sustainably manage and fulfill customer demand.
3DVIA – Shape Your Dream
3DVIA currently helps over 26 million consumers make
important buying decisions in their daily lives by delivering
a fast, rich and visually stunning experience for 3D space
planning. The brand is driving growth and proliferation of 3D
among consumers via two separate target audiences.
For consumers and interior designers, HomeByMe offers
a free tool for consumers and is used by millions of people
to create virtual twins of their home. Its professional
subscriptions enable
interior designers to offer their
customers a game‑changing level of speed, responsiveness,
ease of use and visual impact with 360° virtual reality and
augmented reality.
For retailers, 3DVIA offers two products that support a
virtual omnichannel buying experience: HomeByMe for
Kitchen Retailers and HomeByMe for Home Retailers.
These products afford an interactive 3D room‑planning
experience dedicated to furniture retailers and their millions
of customers.
Information Intelligence Applications
The 3DEXPERIENCE platform allows you to calibrate and
contextualize experiences considering all the information
within and outside the Company.
The 3DEXPERIENCE platform provides unique intelligent
information, artificial intelligence, semantic indexing and
search capabilities. Leveraging the ultimate new data
science, machine learning technologies and modeling, the
3DEXPERIENCE platform makes it possible to understand,
analyze, correlate, infer, describe, predict and prescript very
complex information. This profound dialogue between the
virtual model and data is unique to Dassault Systèmes and
cannot be found elsewhere.
NETVIBES – Reveal Information Intelligence
NETVIBES transforms massive
into
knowledge and know‑how, providing industry perspective
(including customers,
trends or
competition) for informed decisions.
industry & market
information flows
BIOVIA – Model the Biosphere
BIOVIA empowers scientists to shape the biosphere by
discovering and developing novel chemicals, biologics, and
materials to improve lives and create a more sustainable
world. Through collaborative and experiences, BIOVIA
connects the virtual world of modeling and simulation with
the real world of scientific laboratory experimentation.
BIOVIA partners with science‑based organizations bringing
the best of knowledge and know‑how with a comprehensive
set of experiences, spanning across five portfolios:
biosciences, materials science & engineering, lab informatics,
scientific informatics and total quality and regulatory. Our
software solutions are orchestrated in end‑to‑end workflows
on the 3DEXPERIENCE platform.
innovation across science‑driven
BIOVIA provides deep scientific heritage and technology
levels of research and
expertise advances the highest
collaborative
industries
including life sciences, consumer packaged goods; industrial,
energy & materials; transportation & mobility, aerospace
& defense and high‑tech. Organizations around the world
are
innovation and
increasing productivity and quality while assuring regulatory
compliance and shortening time to market.
transforming digitally, advancing
Simulation Applications
The 3DEXPERIENCE platform
scenarios against reality.
lets you test possible
3DEXPERIENCE
is made possible by real‑time realistic
simulation. Dassault Systèmes has made big investments
in technologies and services to simulate complex behaviors,
production system execution, additive manufacturing
logistics operations and consumer usages
processes,
in everyday
life. It has unique assets for complexity
management and multiscale, multidiscipline simulation
(structures, fluids, electromagnetics, acoustics, etc.). Building
simulation into the design and virtual manufacturing process
makes it possible to optimize product design in accordance
with the manufacturing process and with robustness,
weight, and cost constraints.
SIMULIA – Reveal the World We Live in
SIMULIA delivers science‑based multiscale, multiphysics
simulation solutions that enable designers, engineers,
scientists, and all innovators to create and experience virtual
twins. Leveraging data science and state‑of‑the‑art AI, the
3DEXPERIENCE® platform unifies modeling and simulation
(MODSIM) and enables all stakeholders to collaborate
innovative product development. Our
on accelerating
end‑to‑end
industry processes capture knowledge and
know‑how, putting the power of MODSIM in the hands
of all users to eliminate material waste, reduce costly
time‑consuming physical testing,
improve quality and
safety, and meet global sustainability mandates.
1
1
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Business Activities
NETVIBES transforms intuition into real world evidence,
augmenting the virtual twin experiences with contextualized
real world data.
NETVIBES elevates any individual experience to reusable
knowledge and knowhow, transforming all historical actions,
documents, interactions into an enterprise patrimony.
MEDIDATA – Power Smarter Treatments and Healthier People
MEDIDATA is leading the digital transformation of life
sciences. MEDIDATA is dedicated to improving the way
clinical research
is designed, conducted, analyzed, and
utilized. Its ultimate goal is to bring the right therapy to the
right patient at the right time and transform the patient
experience.
An enormous amount of safety and efficacy information is
needed to gain regulatory approval for a new therapeutic
or diagnostic product. Today, billions of data points exist in
silos, in different formats, across medical centers around
the world. MEDIDATA collects, cleans, standardizes,
manages, and analyzes numerous data types to support
clinical development and commercialization in more than
140 countries. Discovering and modeling clinical insights
helps pharmaceutical, biotech, medical device and diagnostic
companies, and academic researchers accelerate value,
minimize risk, and optimize outcomes from their research
programs.
trials and nine
MEDIDATA, comprising over 30,000
million patients, is constantly exploring new concepts and
techniques to introduce the next generation of solutions;
ones that can make precision medicine a reality across the
entire continuum of clinical development.
By leveraging MEDIDATA’s advanced analytics, customers
uncover actionable insights that accelerate breakthrough
innovations, and optimize study execution and
clinical
commercial success. Powered by
the 3DEXPERIENCE
platform, MEDIDATA offers end‑to‑end capabilities including
discovery, development, insight generation, modeling, and
manufacturing, and opens up tremendous possibilities for
life sciences and healthcare innovation.
More than 2,200 customer and partner organizations access
the world’s largest, cloud‑based platform of solutions for
clinical development, commercial, and real‑world data.
Moreover, ~70% of novel drugs approved by the U.S. Food
and Drug Administration (FDA) have been developed with
the help of MEDIDATA’s technology. Globally, all of the top
20 pharmaceutical companies, ranked by revenue, use its
technology.
Social and Collaborative Applications
The 3DEXPERIENCE platform allows you to bring together
and catalyze a diversity of talents towards Collaborative
Innovation.
The 3DEXPERIENCE platform allows any business to become
innovative by building on structured and unstructured
collaboration. The platform connects people, ideas, data and
solutions driving collaborative innovation.
ENOVIA – Plan your Definition of Success
ENOVIA enables people in business to Plan their Definition
of Success, serving clients across all twelve industries. Its
offer is unique in streamlining structured and unstructured
collaboration across the organization, applying the power of
the 3DEXPERIENCE platform to connect people, knowledge
and processes.
ENOVIA enables companies of all sizes to collaboratively
manage the lifecycle of their configured, multi‑discipline,
product and manufacturing process virtual twin experiences.
Clients accelerate time to market in compliance with their
sustainability and business objectives, and specific market
regulations.
ENOVIA provides dedicated business roles and industry
processes to connect business users across multiple domains
like quality, sourcing, procurement and planning.
PLM
CENTRIC PLM – Plan your Collection’s Success
CENTRIC
innovative
an
provides
product‑concept‑to‑launch platform for retailers, brands and
manufacturers of all sizes and segments of the consumer
goods industry including fashion, footwear, luxury, outdoor,
consumer electronics, cosmetics & personal care and food &
beverage.
CENTRIC PLM enables digital transformation to achieve
strategic and operational goals such as orchestrating
and executing a competitive retail and product strategy,
increasing agility, speeding time to market and getting closer
to consumers resulting in maximized revenues and margins.
All solutions are highly configurable and built hand‑in‑hand
with market‑leading companies:
— Centric PLM® streamlines product design, development,
sourcing, quality & compliance, packaging & proofing,
sustainability and digital product creation;
— Centric Planning™ delivers best‑in‑class, easy‑to‑use and
visually‑driven financial, merchandise and assortment
planning as well as store & vendor forecasting for
seamless and fast, pre and in‑season execution;
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Business Activities
— Centric Visual Boards™
improves team collaboration
for optimized product assortments and a streamlined
omni‑channel buying and sell‑in process;
Finally, 3DS OUTSCALE strengthens cyber governance
and develops business experiences through a new cloud
ecosystem via its Marketplace or alliances such as NumSpot.
— Centric Pricing™ provides AI‑driven competitive product
and price assortment benchmarking information and
market trend insights.
1.4.2.4
3DEXPERIENCE Works
3DEXCITE – Engineer the Excitement
3DEXCITE drives commercial innovation through software
and services based on the 3DEXPERIENCE platform. In the
experience economy, manufacturers’ business models are
changing, and engineering is becoming more important
than artistry
in commercialization. Service ecosystems
now extend the value of sophisticated products through
applications,
for more accurate and
appealing content, representing products in their context of
use. 3DEXCITE delivers software and professional services to
transport product knowledge into end‑user virtual universes.
fueling demand
3DS OUTSCALE – The Leading Sovereign and Sustainable
Operator of Trusted Business Experience as a Service
3DS OUTSCALE, that became a brand of Dassault Systèmes
in 2022, is the first sovereign and sustainable operator of
Trusted Business Experience as a Service. It is the first ever
IaaS company certified SecNumCloud by ANSSI – French
National Agency for the Security of Information Systems.
3DS OUTSCALE’s strategy and its offer are unique in the
industry.
First, 3DS OUTSCALE
is the strategic sovereign cloud
operator that enables governments and corporations from
all sectors to access digital autonomy through a cloud
experience and cyber governance declined in three levels:
— Dedicated Cloud: a cloud dedicated
collaboration in the customer’s space;
to sovereign
— Sovereign Cloud: a sovereign trusted cloud for trusted
collaboration within a common legal and fiscal space;
— International Cloud: an international cloud for secure
collaboration.
Secondly, 3DS OUTSCALE aims to be the value creation
enabler for new business experiences through holistic
collaborative worlds that combine data science, virtual twin
experiences, process modeling, supported by collaboration
tools. 3DS OUTSCALE delivers business experience twins that
enable all business users to excel in their roles by leveraging
data science, breaking down silos, and capturing knowledge
and expertise across their organization and ecosystem:
from market intelligence and cost optimization to talent
management, innovation acceleration, asset intelligence, and
quality control.
In 2019, Dassault Systèmes
introduced 3DEXPERIENCE
Works, a new family of specialized business applications on
the 3DEXPERIENCE platform for small and medium‑sized
companies that want to expand their business to become
experience providers. Small and midsized firms worldwide
need cloud‑based solutions to grow but have long been
challenged to find ones that are right for their size. By
introducing 3DEXPERIENCE Works, Dassault Systèmes
brings the platform benefits to them. 3DEXPERIENCE
Works extends the ease of use and simplicity that have been
hallmarks of SOLIDWORKS applications to a new category of
solutions composed of fine‑tuned and simplified applications.
3DEXPERIENCE Works uniquely combines collaboration with
design, simulation, manufacturing and manufacturing ERP
capabilities in a single virtual collaborative environment to
help growing businesses become more inventive, efficient
and responsive. The 3DEXPERIENCE Works family includes
applications from SOLIDWORKS, DELMIA, DELMIAWorks,
ENOVIA, SIMULIA, NETVIBES and 3DEXCITE.
1.4.2.5
Industry Solution Experiences, Industry
Process Experiences and Roles
Dassault Systèmes provides to its customers a portfolio
of Industry Solution Experiences and Industry Process
Experiences that are meaningful combination of roles
developed by brands.
The Company’s portfolio is structured as followed:
— Industry Solution Experiences meet the challenges
of an industry: for example, Engineered to Fly allows
Aerospace & Defense suppliers to accelerate production
and go‑to‑market lifecycles from bid to delivery.
— Industry Process Experiences correspond to the business
process used by a team in the context of the solution. Let
us take the example of Aerospace Composite Engineering
in Engineered to Fly: this industry process experience
aims at helping to design, optimize and produce
composites parts with process‑oriented applications.
— Roles correspond to the work of one individual in
the context of the industry process – for example,
Composites Braiding & Forming Engineer in the context
of Aerospace Composite Engineering correspond to the
job of an engineer.
1
1
31
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Business Activities
Together with the Company’s partners, four ways have been
developed to engage with customers and provide them with
the right value at the right time:
— Customer Solution Experiences: a direct engagement
approach for companies that are under transformation
and are looking for the greatest value for their customers.
— Customer Process Experiences: a partnership‑based
approach for organizations that seek optimal operational
performance from their industrial processes.
— Customer Role Experiences: a partnership‑based
approach for organizations whose users want to achieve
excellence and need to be provided with knowledge and
know‑how to perform on their job.
— Life Science Engagement: an engagement approach for
Life Sciences & Healthcare organizations.
In Addition, Dassault Systèmes provides an Online Store
for organizations which expect end‑to‑end, full online
engagement, for SaaS roles. This Online engagement triggers
continuous relationship with users and helps growing SaaS
businesses become more inventive, efficient and responsive.
1.4.2.7
Estimated Addressable Market Size,
Market Position and Competitors
Total addressable market
The total addressable market is estimated at approximately
$45 billion. The total addressable market sizing use third
party estimates of software domains, analyzed and
compared to the software capabilities of the company’s
offer. Third party estimates do not take into account
internally developed software by companies but only
commercially sold software.
Market positioning
Dassault Systèmes is leader in the 3D Product Lifecycle
Management (PLM) market (1), which includes 3D software
for design, simulation, digital manufacturing, product
data management and collaboration. Dassault Systèmes is
also one of the world’s leading 3D design and engineering
simulation software providers with CATIA, SOLIDWORKS
and SIMULIA brands. The 3DEXPERIENCE provides the most
complete user experiences, as they go beyond the simulation
of the individual physics or multi‑physics capabilities.
Dassault Systèmes industry portfolio is forward looking. It
is carefully crafted by industry segment based on “what my
industry values the most” – its most important challenges.
The Company’s portfolio aims at helping to answer to these
challenges and ensure its customers that they become
innovation and sustainability front‑runners.
Each Industry Solution and Industry Process Experiences
has a set of Key Value Indicators to explain the value to
customers and allow them to monitor it – these key value
indicators can be as broad as acceleration of innovation
lifecycle, operational efficiencies, reduction of time loss,
reduction of CO2 emissions or increase of revenues.
While crafting this portfolio, specific attention is paid to
ensure that the Dassault Systèmes industry portfolio also
helps customers become even more sustainable, by limiting
footprint and increasing handprint – for example: reducing
physical testing and increase virtual testing; optimizing
factory operations; simulating the environmental impact of a
product or process, etc.
This commitment to help customers across all industries
to develop new products, materials and processes needed
to build a more sustainable economy is at the heart of
Dassault Systèmes’ raison d’être. You can learn more about
the Company’s approach to sustainable development and
its ambitions in the sections “1.8 Environmental, Social,
and Governance Performance” and “2.7.2 EU Taxonomy
Indicators”.
This well‑structured portfolio allows companies to embark
on significant digital transformation, while having a clear
overview of the impact and desired outcomes for their
organizations, as well as the jobs and skills of their people.
Both C‑level and operational teams can understand and track
the outcomes of transformation projects at their own level.
Each Industry Solution and Industry Process Experiences also
encompasses Dassault Systèmes’ knowledge and know‑how
in the twelve industries served, which allow the Company’s
customers to get up to speed quickly and close the gap with
the competition.
By December 31, 2023, Dassault Systèmes offered 111
Industry Process
Industry Solution Experiences, 710
Experiences and 520 Roles.
1.4.2.6
How Dassault Systèmes
engages with customers
Dassault Systèmes customers extend
from startups,
small and mid‑sized companies to the largest firms in
the world and also include educational institutions and
leverages
government departments. Dassault Systèmes
its 3DEXPERIENCE platform to engage seamlessly with all
customers, accelerate its growth, define and execute sales
processes.
(1) Dassault Systèmes evaluates its competitive positioning based on third‑party studies (D&B, Oxford Economics, Omdia, IDC, Gartner).
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Business Activities
By industrial sector, Dassault Systèmes is one of the leading
software vendor
in Manufacturing Industries and Life
Sciences & Healthcare. In Infrastructure & Cities, with the
3DEXPERIENCE platform, the Company’s approach meets
the growing needs of infrastructure operators and public
authorities to transform their services and their organizations
in the face of the accelerated virtualization of the world.
Competitive landscape
The software market
is highly‑competitive. Dassault
Systèmes broadens the addressable market by expanding its
product portfolio, diversifying its client base, and developing
new applications and markets. The level of competition also
increases from new competitors ranging from technology
startups to the largest technology and industrial companies
in the world.
In Manufacturing Industries, competitors in the PLM market
include but are not limited to Siemens Digital Industries,
Autodesk and PTC, simulation vendors with Ansys (1),
Altair Engineering, MSC Software (owned by Hexagon),
collaborative enterprise business processes and industrial
operations software vendors like Oracle and SAP.
Life Sciences & Healthcare sector is a highly fragmented
market with the three largest players, including Dassault
Systèmes, representing less than 30% of market shares.
There is a wide range of competitors in research and
discovery
in preclinical
development (Labware and Thermo Fisher Scientific), in
clinical testing (Oracle and Veeva Systems), in manufacturing
(SAP, SAS and Tibco) and in commercialization (Veeva
Systems, and Model N).
(Schrödinger and Benchling),
Other actors, mostly software developers, that directly
or indirectly compete with Dassault Systèmes include but
are not limited to Adobe, ARAS, Aveva Group (owned by
Schneider Electric), Bentley Systems, Epicor, Infor, Intergraph
(owned by Hexagon), JDA Software, Microsoft, Nemetschek,
Palantir Technologies, Plex, Salesforce, and other software
companies in the mining sector or offering information
intelligence, social enterprise
innovation, collaboration
software capabilities or digital marketing.
1.4.3
Material Contracts
Other than contracts entered into by the Company in the
ordinary course of business, Dassault Systèmes’ material
contracts are principally the distribution agreements with
its value‑added retailers and systems
integrators. See
paragraph 1.4.2.6 “How We Engage with Customers”,
strategic partnerships
in paragraph 1.5 “Research and
Development”, and in particular paragraph 1.5.1 “Overview”.
Business contracts
JLR
In 2023, JLR and Dassault Systèmes renewed and expanded
their partnership for a five‑year period to support the
“Reimagine” strategy of JLR to become a “Digital First”
company, expanding the usage of 3DEXPERIENCE from
8,500 to more than 18,000 users.
JLR continues to deploy Dassault Systèmes’ 3DEXPERIENCE
platform globally, to support the end‑to‑end development of
all its modern luxury vehicles. Users across all JLR business
areas and suppliers will make use of virtual twins to increase
efficiency, improve production management, save time, and
reduce waste and costs.
JLR’s decision to deploy the 3DEXPERIENCE platform at this
scale further confirms the role that Dassault Systèmes plays
in JLR’s commitment for a good and responsible business
in an industry that demands high levels of excellence and
personalization.
The Boeing Corporation
In 2017, The Boeing Corporation and Dassault Systèmes
into a new, extended strategic partnership
entered
its
agreement pursuant to which Boeing will expand
deployment of Dassault Systèmes’ software on
the
3DEXPERIENCE platform across its commercial aviation,
space and defense divisions. Following an extensive
evaluation process, Boeing selected Dassault Systèmes as its
technological partner for its digital transformation strategy:
PLM
(Product Lifecycle Management), authoring and
manufacturing operations management tools.
Financing
Bond
In September 2019, Dassault Systèmes SE
its
four‑tranche fixed rate bond for a total of €3.65 billion.
This issuance was part of the financing of the acquisition
of Medidata Solutions Inc., completed in October 2019.
See paragraph 3.1.6 “Capital Resources” and Note 19 to
the consolidated financial statements. The first tranche of
€900 million was reimbursed on September 16, 2022.
issued
(1) On January 16th, 2024, Synopsys announced a definitive agreement to acquire Ansys. The transaction is anticipated to close in the first half of 2025.
1
1
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Business Activities
Term loans and lines of credit
Leases
To finance the acquisition of Medidata Solutions Inc., Dassault
Systèmes also subscribed to two loans on October 28, 2019
with maturities on October 28, 2024 in the amount of
€500 million and US$530 million, respectively. These loans
were voluntarily repaid in full by Dassault Systèmes between
October 2020 and February 2022.
In connection with this acquisition, Dassault Systèmes also
received a financing commitment in the form of a revolving
line of credit of €750 million for a period of 5 years as of
October 28, 2019. In May 2021, Dassault Systèmes SE
extended its maturity for an additional year, bringing the
maturity date of this credit facility to October 28, 2026. As of
December 31, 2023, the line of credit was not drawn down.
Negotiable European Commercial Paper
In July 2022, the Group launched a Negotiable EUropean
Commercial Paper (NEU CP) program with a maximum limit
authorized by the Board of Directors of €750 million. In
2023, the Company issued a cumulative total for the year
2023 of €1,275 million (while remaining under the limit)
with a maximum maturity of three months, and repaid
€1,275 million under this program.
See paragraph 3.1.6 “Capital Resources” and Note 19 to the
consolidated financial statements.
Dassault Systèmes signed long‑term leases (for twelve
years) for its corporate headquarters in Vélizy‑Villacoublay,
France (the “3DS Paris Campus”) in 2008 and for its offices,
technology lab and data center in Waltham, outside Boston,
United States (the “3DS Boston Campus”) in 2010. In
2013, Dassault Systèmes entered into a new lease for its
headquarters facilities for a non‑cancelable initial term of
ten years starting from the delivery date of an additional
building of approximately 13,000 square meters which
took place in the fourth quarter of 2016. Close to this site,
Dassault Systèmes has also leased since 2010 approximately
11,000 additional square meters in a building located in
Meudon‑La‑Forêt. In 2016, the 3DS Boston Campus lease
was extended for 25 months, to end on June 30, 2026.
In December 2019, Dassault Systèmes signed a new
lease contract for an additional building of approximately
28,000 square meters of office space within the 3DS Paris
Campus, for a fixed term of ten years starting in the second
quarter of 2023. The minimum future lease payments over
the lease term amount to approximately €81.1 million. In this
context, leases of existing buildings have been renegotiated,
notably to extend their term from 2026 to 2032.
On February 14, 2020, Dassault Systèmes acquired the
leasehold rights, for a period of 75 years, for two buildings
located near the Dassault Systèmes offices in Pune, India
(the “3DS Pune Campus”), for an amount equivalent to
€42.8 million, as part of the expansion plan for this campus.
One of the two buildings was fully fitted‑out and delivered
in October 2021, and the fitting‑out of the second building
started mid‑2022 and will be completed by the first quarter
of 2024.
In November 2022, the Company signed a new lease contract
on a Paris office building for a fixed term of 12 years effective
as of the fourth quarter of 2023. The minimum future
lease payments on this building amount to approximately
€42.4 million.
See paragraph 1.9.2.3 “Liquidity Risk” and Note 18 to the
consolidated financial statements.
34
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 1.5
Research and development
1.5.1
Overview
PresentatIon of the Company
Research and development
1
1
Principal areas of investment in R&D are related to the
3DEXPERIENCE business platform foundations and services.
Moreover, with more than 170 scientific and research
partners, the Company’s R&D effort mainly aims at
providing major breakthrough on user experiences and on
the expansion of the reach of its portfolio with immersive,
mobile and native cloud solutions.
long‑standing, scientific
The Company has established
and technical collaborations with key partners in order
to maximize the benefits from available technology and
increase the value for shared customers. These research and
technology alliances are established with three objectives:
— to cover end‑to‑end solutions with holistic offerings;
— to participate in the development of future structure of
As of December 31, 2023, the Group’s R&D teams included
9,841 employees, compared to 9,192 at year‑end 2022,
representing approximately 41% of the total headcount. The
Group increased its total R&D headcount by 7.1% in 2023,
after a 9.6% increase in 2022.
The Company has R&D facilities in the countries where
in
its clients and high‑talent employees are
Europe (mainly France, Germany, the United Kingdom,
the Netherlands, Poland, and Lithuania), the Americas
(mainly United States) and Asia (mainly India, Malaysia and
Australia).
located:
In 2023, R&D expenses totaled €1,228.3 million for 2023,
compared to €1,087.2 million for 2022, increasing 13%.
Dassault Systèmes benefited from government grants
and other governmental programs supporting R&D of
€38.3 million in 2023 and €36.9 million in 2022. These
government grants principally
research and
development tax credits received in France.
include
The Company conducts its R&D in close cooperation with
customers and users in their respective industries to develop
a deeper understanding of the unique business processes of
these industries as well as the future product directions and
requirements of these industries, customers and users.
industries;
— and to
integrate the most advanced features of
technology into our solutions.
In 2023, Dassault Systèmes counts more than 8,100 people
in its ecosystem of technology and marketplace partners.
Further, the Company is a participant in several hundred
public‑private projects (for example under the aegis of the
FDA, prestigious universities such as Harvard or MIT, and
world leading institutes such Inria and INSERM), collaborates
with renowned scientists (including Nobel Prize winners)
and is engaged in technology partnerships across the twelve
industries (and industry sub‑segments) it serves.
Dassault Systèmes has software development partners
working in each domain of its software solutions. Its
global affiliate program enables developers to create and
market their own applications fully integrated with and
complementary to the Company’s software solutions.
Dassault Systèmes is deeply committed to creating quality
solutions that allow its customers to meet the critical
business requirements of the industries in which they
operate. This commitment to quality is evidenced by its
well‑established Quality Management System certified ISO
9001:2015 – the latest version of the standard focusing on
operational excellence and performance.
1.5.2
SaaS offering and Services
The 3DEXPERIENCE platform provides SaaS offering and
services to enable secured and controlled online collaborative
environments to share and innovate on any computer. This
technology is unique, optimized for big data and available for
remote usage for a wide variety of industry uses.
In 2021, the 3DEXPERIENCE platform on the cloud has been
certified by the highest security standards: ISO 27001:2017
(Information Security Management System), on the full
scope of design, development, delivery, deployment, cloud
operations and support of the 3DEXPERIENCE Software as a
Service (SaaS), as well as ISO/IEC 27701:2019, extension to
ISO 27001 for Privacy Information Management.
MEDIDATA is leading the digital transformation of life
sciences. MEDIDATA is dedicated to improving the way
clinical research
is designed, conducted, analyzed, and
utilized. Its ultimate goal is to bring the right therapy to the
right patient at the right time and transform the patient
experience
35
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Research and development
The Medidata Clinical Cloud®, MEDIDATA’s unified platform,
is built to protect your data’s privacy, security, and quality.
These critical elements are built in at the design phase of
its technology. This validated core is certified by multiple
independent authorities to reinforce this commitment.
MEDIDATA’s robust accreditation and certification portfolio
defines our industry’s gold standards around information
security, patient data privacy, and quality management.
intelligence, virtual twin experiences, and process modeling.
3DS OUTSCALE delivers business experience twins that
enable all business users to excel in their roles by leveraging
data science, breaking down silos, and capturing knowledge
and expertise across their organization and ecosystem:
from market intelligence and cost optimization to talent
management, innovation acceleration, asset intelligence, and
quality control.
The 3DS OUTSCALE portfolio leverages the company’s
extensive knowledge and expertise to host all of its platforms
on a scalable cloud and facilitate the cloud adoption.
Finally, 3DS OUTSCALE strengthens cyber governance
and develops business experiences through a new cloud
ecosystem via its marketplace or alliances such as NumSpot.
3DS OUTSCALE supports the strategic digital autonomy
of France and Europe by providing a trusted industrial
cloud, efficient and respecting the European values and
commitments. 3DS OUTSCALE is a founding member of
Gaia‑X, the project of federation of European cloud services,
and a member of European Alliance for Industrial Data, Edge
and Cloud, of the European Commission, aiming to foster the
development and deployment of next generation edge and
cloud technologies.
On December 4, 2019, 3DS OUTSCALE announced that it had
obtained ANSSI’s (National Cybersecurity Agency of France)
Security Visa, that is, the SecNumCloud qualification, for
its entire Public Sector Cloud offering, aimed at public and
para‑public organizations and Operators of Vital Importance
(OIV): A first for a cloud service provider. This Security Visa
vouches for the highest level of commitment and compliance
with security regulations.
3DS OUTSCALE is fully certified ISO 27001 (information
security management),
security),
ISO 27018 (privacy protection in the cloud) and Health Data
Hosting delivered by ASIP Santé.
ISO 27017
(cloud
Launched in 2021, 3DS OUTSCALE’s marketplace expands
its portfolio of high‑added‑value innovative solutions to
transform the world of tomorrow. Companies and public
decision‑makers can choose the applications that meet
their needs from the marketplace’s trusted ecosystem of
recognized software vendors and service platforms.
In 2022, 3DS OUTSCALE became a brand of Dassault
Systèmes, and the first sovereign and sustainable operator
of Trusted Experience as a Service. 3DS OUTSCALE’s strategy
and its offer are unique in the industry.
In 2023, 3DS OUTSCALE became the first cloud operator
to obtain SecNumCloud 3.2 qualification, the highest
requirement in France and Europe for meeting security and
sovereignty challenges, awarded by ANSSI.
including
The Medidata Clinical Cloud® has been certified by the
highest security standards
ISO 27001:2013,
ISO 27017:2015, SOC‑1 Type 2 and SOC‑2 Type 2 as well
as ISO 27018:2019 for Privacy Information Management.
Dassault Systèmes was the first life sciences company to
achieve compliance with the ISO/IEC 27701:2019 Privacy
Standard. In addition to having a FISMA MODERATE
Authority to Operate for over ten (10) years, MEDIDATA
is compliant with regulations such as ICH E6 (R2), 21 CFR
Part 11, EU GMP Annex 11, the Ministry of Health, Labour
and Welfare (MHLW) of Japan, and the National Medical
Product Administration of China (NMPA).
CENTRIC PLM innovations drive digital transformation for
the most prestigious companies in fashion, retail, luxury,
footwear, outdoor and consumer goods. In 2022, in addition
to its SOC‑2 type 2certification, the CENTRIC PLM platform
has been certified by the highest security standards: IS
27001:2013, ISO 27017:2015 and ISO 27018:2019 for
Privacy.
cloud
Systèmes
Since 2010, Dassault
subsidiary
Outscale SAS (3DS OUTSCALE, a Dassault Systèmes brand)
has been providing companies and public organizations with
stable, scalable and secure Infrastructure as a Service (IaaS)
cloud computing services deployed on trusted industrial
infrastructure. 3DS OUTSCALE’s sovereign cloud provides
complete governance
in terms of digital security and
sovereignty. The compliance with market standards of these
cloud computing services allow 3DS OUTSCALE customers to
deploy their applications with effective performance control.
First, 3DS OUTSCALE
is the strategic sovereign cloud
operator that enables governments and corporations from
all sectors to access digital autonomy through a Cloud
experience and cyber governance declined in three levels:
— Dedicated Cloud: a cloud dedicated
collaboration in the customer’s space;
to sovereign
— Sovereign Cloud: a sovereign trusted cloud for trusted
collaboration within a common legal and fiscal space;
— International Cloud: an international cloud for secure
collaboration.
Secondly, 3DS OUTSCALE aims to be the value creation
enabler for new business experiences through holistic
collaborative worlds that combine data science, artificial
36
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 1.5.3
Intellectual Property
intellectual property rights
Dassault Systèmes protects its technology by applying
a combination of
including
copyrights, patents, trademarks, domain names and trade
secrets. The Company distributes its software products to its
customers via licenses that grant software utilization rights
without transfer of ownership. The contracts contain various
provisions protecting the Company’s intellectual property
rights over its technology, as well as related confidentiality
rights.
The source code (set of instructions under an intelligible
form, and used, once compiled, to generate the object code
licensed to customers and partners) of Dassault Systèmes’
products is protected both as a copyrighted work and as a
trade secret. In addition, some of the key capabilities of its
software products are protected through patents whenever
possible.
However, no assurance can be given that others will not copy
or otherwise obtain and/or use Dassault Systèmes’ products
or technology without authorization. In addition, effective
copyright, trade secret, trademark and patent protection
or enforcement may be unavailable or limited in certain
countries.
Dassault Systèmes is nevertheless engaged in an active
anti‑piracy and compliance policy and takes systematic
measures to prevent the illegal use and distribution of its
products, ranging from regularizing illegal use to initiating
legal proceedings.
its technology and key product
In order to protect
capabilities, Dassault Systèmes generally files patent
1.5.4
Investments
1.5.4.1
Overview
Dassault Systèmes is focused on three strategic sectors of
the economy: Manufacturing Industries, Life Sciences &
Healthcare and Infrastructure & Cities. The Company’s ability
to define and penetrate new markets has been critical to its
success, underpinned by a clear and strong commitment to
technological and business innovation.
in
investments,
The
research and development and
acquisitions, are aligned with the Company’s strategy.
They are the principal driver of our product innovations and
enhancements. Acquisitions also complement and extend
the business value Dassault Systèmes can bring to industrial
sectors, clients and users.
PresentatIon of the Company
Research and development
1
1
applications in countries where many of its main customers
and competitors are located. At year‑end 2023, Dassault
Systèmes’ portfolio
comprised over 790 protected
inventions, including 56 new inventions in 2023, i.e. 40%
more filings than in 2022. Patents have been granted in one
or more countries for more than 70% of these inventions,
and patents for the others are pending. When a patent
protection is deemed unsuitable, certain inventions are kept
secret, with the proof of creation being saved. Dassault
Systèmes also has a cross‑license policy for patents with
major players in its industry. In recent years, Dassault
Systèmes has signed a number of transaction protocols and
patent licensing agreements with companies identified as
infringing its patents.
With regard to trademarks, the Company’s policy is to
register trademarks for its main products and services in
the countries where it does business. Trademark protection
may combine international, European Union and/or national
trademark filings.
See paragraph 1.9.1 “Risks Related to the Business”, and
particularly paragraph 1.9.1.4 “Protection of Dassault
Systèmes’ Intellectual Property Rights and Assets” for
the difficulties in ensuring adequate protection for the
Company’s own intellectual property, and paragraph 1.9.1.14
“Infringement of Intellectual Property Rights and of Third‑
Party Technology Licenses” for risks concerning the alleged
unauthorized use of third‑parties’ intellectual property rights
by Dassault Systèmes.
Research and development expenses totaled €1.23 billion
in 2023, €1.09 billion in 2022, and €949.3 million in 2021.
Acquisitions, net of cash acquired, amounted €16.1 million in
2023, €46.4 million in 2022, and €21.4 million in 2021.
Dassault Systèmes’ investments are in line with its purpose
to (i) broaden its offer to answer clients’ multi‑discipline
challenges, (ii) expand market coverage in the three sectors,
and (iii) extend the power of the 3DEXPERIENCE platform as
a system of operations.
For further information, see paragraphs 1.2 “Profile and
Purpose of Dassault Systèmes”, 1.4.1.1 “The Company’s
strategy: Human
Industry Experiences” and 1.4.1.2
“Strategic operational elements”.
37
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Research and development
1.5.4.2
Main acquisitions between
2019 and 2023
Integrated Manufacturing ERP Solution
for small and midsized companies
On January 3, 2019, Dassault Systèmes completed the
acquisition of IQMS, a manufacturing ERP software company
offering an all‑in‑one solution for managing engineering,
manufacturing and business ecosystems by digitally
connecting order processing, scheduling, production and
shipping processes in real time. This acquisition allows
small and midsized manufacturing companies to digitally
transform
the
3DEXPERIENCE platform, extending the value proposition
of SOLIDWORKS, and expanding the market coverage of the
DELMIA brand.
their business operations and access
Clinical Software Leader in Life Sciences & Healthcare
On October 28, 2019, Dassault Systèmes completed
the acquisition of Medidata Solutions, Inc., a company
specialized in clinical development and data intelligence,
and whose clinical expertise and cloud solutions enable the
development and commercialization of smarter therapies.
This investment opened up a new world of virtual twin
experiences in Life Sciences & Healthcare. The combination
of MEDIDATA solutions and the 3DEXPERIENCE platform
connects the dots between research, development, clinical
trials, manufacturing and commercial deployment and
positions Dassault Systèmes as a leading partner for the
digital transformation of Life Sciences & Healthcare industry
in the age of precision medicine and patient‑centered
experiences.
Enhanced Collaborative Data Science
semantic processing
completed
On
June 9, 2020 Dassault Systèmes
in artificial
the acquisition of PROXEM, a specialist
intelligence‑based
software and
services, and provider of consumer experience analysis
solutions. With this acquisition, Dassault Systèmes extends
information intelligence on the 3DEXPERIENCE platform to
semantics with natural language processing technologies.
Customers can automate the interpretation of unstructured
text data to become more innovative, agile and sustainable.
Advanced 3DEXPERIENCE platform
cloud and data science strategy
On December 10, 2020 Dassault Systèmes completed the
acquisition of NuoDB. Founded in 2010, NuoDB develops
the most advanced distributed elastic database for cloud
environments. The cloud‑native distributed SQL database
capitalizes on the competitive advantages of the cloud,
with on demand scalability, continuous availability and
transactional consistency, and is built for mission critical
applications.
Enhanced collaborative business process management
On July 16, 2021, Dassault Systèmes acquired France‑based
Iterop, a Business Process Management company leveraging
BPMN 2.0 standard ‑a neutral, graphical language. Iterop’s
cloud‑based, agile and inclusive technology gives customers
better control of processes, in individual, agile team and
regulated industry contexts. Together, Dassault Systèmes
and Iterop will enhance the 3DEXPERIENCE platform and
3DS OUTSCALE to extend inclusive innovation via the cloud.
New business planning cloud experiences
On November 15, 2021, Centric Software, a Dassault
Systèmes Company, acquired the innovative end‑to‑end
retail planning solution provider, Armonica Retail: Founded
in 2018
innovative
in Milan, Italy, Armonica provides
cloud‑native solutions enabling companies to orchestrate an
integrated process from planning to development to delivery
to omni‑channel sales. Armonica’s solutions and CENTRIC
PLM will deliver digital transformation that provides users
significant potential value via the ability to plan, visualize
and execute business, based on real‑time plan versus actual
feedback throughout the entire product lifecycle.
Expanding 3DEXPERIENCE platform with
augmented reality and field control technology
In July 2022, Dassault Systèmes announced the acquisition of
DIOTASOFT, a developer of assembly assistance and quality
control software solutions for manufacturing and operations.
Founded in 2009 in France, DIOTASOFT provides software
solutions for digital‑assisted operations and digital‑based
robotics inspection that help industrial companies enter a
new era of digital transformation. This acquisition expands
Dassault Systèmes’ 3DEXPERIENCE platform with actionable
virtual twin experiences on the shop floor, enabling industries
to optimize the performance of complex industrial processes
and boost their operational efficiency.
Offering the reference solution for trusted
cloud services through a consortium
In October 2022, Dassault Systèmes announced an alliance
with Docaposte (digital subsidiary of La Poste group), with
Bouygues Telecom and Banque des Territoires, uniting their
expertise and strengths at the core of a French industrial
consortium
in order to create NumSpot, a company
dedicated to the development of a full offering of sovereign
and trusted cloud services in Europe. Available in 2023 in
France, NumSpot is targeting commercial development in
the European marketplace with the ambition to become the
benchmark in trusted cloud offerings.
38
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Enlarged Centric Software Platform
In November 2022, Centric Software announced the
acquisition of StyleSage, a company offering AI‑powered
tools for competitive assortment benchmarking, and price
and product trend insights. StyleSage provides product
trend data and competitive pricing intelligence to enable
fashion, beauty and home retailers and brands to understand
the pricing and style trends shaping their market and to
visualize the product and pricing mix of their competitors.
The combination of Centric PLM, Centric Planning, Centric
Visual Boards and StyleSage enables brands and retailers to
position themselves optimally vis‑à‑vis both the market and
consumers.
Making 3DS OUTSCALE the trusted
partner for financial institutions
In June 2023, Dassault Systèmes announced the acquisition
and integration of the Innova Regulatory – Technology
solution. This strategic move reinforces the ambition to make
3DS OUTSCALE the trusted partner for financial institutions.
to automate
Innova
leverages artificial
intelligence
1
1
PresentatIon of the Company
Research and development
investment compliance controls. It offers precise semantic
analysis and automatic detection of
investment rules,
adding a new dimension to Dassault Systèmes’ Business
Experience for Finance offering, which promotes optimized
management of compliance controls and stimulates
collaboration and collective intelligence within organizations.
Acquiring an AI‑Powered Predictive Pricing Solution
In September 2023, Centric Software the acquisition of
aifora, the Artificial Intelligence‑powered price and inventory
optimization solution. Focused on the needs of trend‑driven,
highly seasonal goods such as fashion, apparel, footwear and
home, aifora’s easily configured, easy to use SaaS platform
offers predictive algorithms and machine learning models
to interactively optimize pricing across various stages of
the retail lifecycle. aifora’s solution also enhance inventory
allocation and
to
optimize supply chains and reduce overstock or stockouts to
align with sustainability initiatives.
replenishment, enabling businesses
Our principal acquisitions with an individual purchase price
greater than €100 million over the last three years include:
Acquisition
Medidata Solutions, Inc.
IQMS
Centric Software (majority ownership acquired in 2018, and acquisition of the
balance of shares of non‑employees in 2020)(1)
(1) As of 12/31/2023, Dassault Systèmes holds 93.5% of the share capital of Centric Software.
Year
Purchase Price
2019
2019
€5.1 billion ($5.8 billion)
€379 million
2018/2020
€228 million
39
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Company Organization
1.6
Company Organization
1.6.1
Dassault Systèmes SE’s Position within the Company
Dassault Systèmes SE, Dassault Systèmes’ parent company,
fulfills several roles: first, it is one of the Company’s
largest operating entities and one of its principal R&D
centers, responsible for the development of a number
of the Company’s software solutions integrated in the
3DEXPERIENCE platform. Dassault Systèmes SE is also the
holding company that owns directly or indirectly all the
companies that make up the Company. Dassault Systèmes SE
plays a centralizing role, defining the Company’s overall
strategy and the means for its deployment, as well as the
marketing and sales policy and the three engagement
in paragraph 1.4.2.6 “How Dassault
models (described
Systèmes engages with customers”). The parent company
generally manages cash for subsidiaries whose currency is
the euro, and provides support to the Company for a number
of activities, including finance, communication, marketing,
legal affairs (including management and protection of IP),
ethics and compliance, human resources and IT, and pools
certain costs for its subsidiaries.
Dassault Systèmes SE receives royalties related to the IP it
holds and separately charges centralized services to the
subsidiaries benefiting from support services and cost
pooling. It receives dividends paid by its subsidiaries.
1.6.2
Principal Subsidiaries of the Company
As at December 31, 2023, Dassault Systèmes was composed
of Dassault Systèmes SE and its 88 operating subsidiaries.
On December 31, 2022, the Company had 99 operating
subsidiaries. The decrease is due to its simplification program
in 2023, which aims to reduce the number of legal entities in
existence in each country.
The chart below sets forth Dassault Systèmes’ main subsidiaries:
See also Note 27 to the consolidated financial statements and the table of subsidiaries and shareholdings under Note 24 to the
parent company financial statements.
40
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Financial Summary: five‑year historical information
1.7
Financial Summary: five‑year historical information
Sustaining Growth over the Long‑term
Five‑year Financial Summary
Dassault Systèmes’ performance historically relies on a
financial model with a strong focus on recurring software
revenue, which represented over 80% of the total software
revenue during 2023.
We have provided below summary income statement and
balance sheet information for the last five years. The selected
financial data in the table below have been prepared in
accordance with International Financial Reporting Standards
(“IFRS”) as adopted in the European Union, unless otherwise
indicated.
A financial review including a comparison of 2022 and 2023
can be found in Chapter 3 “Financial Review and Prospects”.
Income statements and dividends
(in millions of euros, except per share data
and percentages)
Total revenue
Software revenue
Operating income
As a percentage of total revenue
Net income attributable to equity holders of the
Company
Diluted net income per share (2)
Dividend per share (2)
Dividend per share growth
Year ended December 31,
2023
2022
2021
2020
2019 (1)
€5,951.4
5,360.0
1,241.9
20.9%
1,050.9
€0.79
€0.23 (3)
9.5%
€5,665.3
5,144.0
1,302.9
23.0%
€4,860.1
4,402.6
1,019.4
21.0%
931.5
€0.70
€0.21
23.5%
773.7
€0.58
€0.17
54.5%
€4,452.2
4,012.6
669.7
15.0%
491.0
€0.37
€0.11
(20.0)%
€4,018.2
3,539.4
812.8
20.2%
615.3
€0.47
€0.14
7.7%
(1) The Group adopted IFRS 16 for the fiscal year beginning January 1, 2019 using the simplified retrospective approach. Under this method, the transition effect is accounted
for within the consolidated equity at the date of initial application, January 1, 2019, without any adjustment to the prior year comparative information.
(2) Figures before 2021 have been restated in order to reflect the five‑for‑one share split on Dassault Systèmes’ share effected on July 7, 2021.
(3) To be proposed for approval at the General Meeting of Shareholders scheduled for May 22, 2024.
1
1
41
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Financial Summary: five‑year historical information
Supplemental non‑IFRS financial information
The supplemental non‑IFRS financial
information are
subject to inherent limitations. They are 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 various definitions and methods
of which can be found in Note 2 Material accounting policy
information of the consolidated accounts. In addition,
Dassault Systèmes’ non‑IFRS supplementary financial data
may not be comparable to other data also called “non‑
IFRS” and used by other companies. Non‑IFRS financial
information definitions can be found in 3.1.2.3 “Non‑IFRS
financial information definitions”. The reconciliation between
this financial information and the IFRS framework can be
found in 3.1.4 “IFRS non‑IFRS Reconciliation”.
(in millions of euros, except per share data
and percentages)
Year ended December 31,
2023
2022
2021
2020
2019 (1)
Total revenue
Software revenue
Operating income
As a percentage of total revenue
Net income attributable to equity holders of the
Company
Diluted net income per share (2)
€5,951.4
5,360.0
1,925.6
32.4%
€5,665.5
5,114.3
1,892.0
33.4%
€4,861.7
4,404.0
1,666.2
34.3%
€4,464.8
4,024.0
1,349.8
30.2%
€4,055.6
3,573.6
1,297.4
32.0%
1,597.9
€1.20
1,512.2
€1.13
1,265.3
€0.95
994.7
€0.75
959.6
€0.73
(1) The Group adopted IFRS 16 for the fiscal year beginning January 1, 2019 using the simplified retrospective approach. Under this method, the transition effect is accounted
for within the consolidated equity at the date of initial application, January 1, 2019, without any adjustment to the prior year comparative information.
(2) Figures before 2021 have been restated in order to reflect the five‑for‑one share split on Dassault Systèmes’ share effected on July 7, 2021.
Balance sheets and net cash provided by operating activities
Year ended December 31,
(in millions of euros)
2023
2022
2021
2020
2019 (1)
ASSETS
Cash, cash equivalents and short‑term investments
Trade accounts receivable, net
Goodwill and intangible assets, net
Other assets
TOTAL ASSETS
LIABILITIES
Contract liabilities
Borrowings
Other liabilities
Parent shareholders’ equity
TOTAL LIABILITIES
€3,568.3
1,707.9
7,647.0
1,699.2
€14,622.5
1,479.3
2,990.7
2,318.3
7,834.1
€14,622.5
€2,769.0
1,661.6
8,273.6
1,556.9
€14,261.1
1,536.6
2,996.0
2,417.8
7,310.7
€14,261.1
€2,979.5
1,366.3
8,174.9
1,698.0
€14,218.7
1,304.4
3,869.7
2,847.3
6,197.3
€14,218.7
€2,148.9
1,229.1
7,937.3
1,648.9
€12,964.2
1,169.1
4,190.4
2,543.4
5,061.3
€12,964.2
€1,945.6
1,319.2
8,917.0
1,690.8
€13,872.6
1,093.5
4,601.2
2,969.2
5,208.7
€13,872.6
(1) The Group adopted IFRS 16 for the fiscal year beginning January 1, 2019 using the simplified retrospective approach. Under this method, the transition effect is accounted
for within the consolidated equity at the date of initial application, January 1, 2019, without any adjustment to the prior year comparative information.
(in millions of euros)
2023
2022
2021
2020
2019
Net cash provided by operating activities
€1,565.2
€1,525.2
€1 613.1
€1,241.3
€1,186.1
Year ended December 31,
42
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
PresentatIon of the Company
Environmental, Social and Governance Performance
1.8
Environmental, Social and Governance Performance
Dassault Systèmes’ sustainable development strategy, inspired by its purpose, is built around three pillars:
— designing solutions enabling Dassault Systèmes’ customers to reduce their environmental footprint;
— committing to environmentally sustainable operations;
— developing human capital in respect of diversity and ethics.
These pillars all include quantitative targets to be achieved by 2025 or 2027.
1.8.1
Key Metrics
In 2022, Dassault Systèmes’ efforts focused on overhauling
the three pillars of its sustainable development strategy to
better reflect the content of its strategic axes (handprint,
initiative has been
footprint and human capital).This
completed, at the beginning of 2023, by the decision to
replace, where possible, certain internal indicators with
standardized, science‑based, and audited ones. This choice is
more in line with the scientific nature of Dassault Systèmes
and enables comparability with other companies in the
software industry. Thus:
— for the first pillar, it was decided to introduce an objective
linked to the EU Taxonomy, a system for classifying
economic activities according to rigorous and identical
criteria for all the players involved;
In 2023, Dassault Systèmes was unable to publish in its URD
the proportion of its turnover considered as aligned with the
EU Taxonomy. The European Commission belatedly published
– at the end of December 2022 – two question‑and‑answer
documents specifying the methodology and criteria for
certification, by an independent third‑party auditor, of the
calculations and data linked to the alignment indicators.
These clarifications meant that Dassault Systèmes could no
longer publish an alignment percentage that was faithful to
reality, in the absence of certification by a third‑party verifier
within the meaning of the regulations.
Pending clarification of the methodology and initial feedback
from independent third‑party auditors, Dassault Systèmes
has therefore decided to introduce a target linked to the
percentage of eligible turnover, as oppose to aligned, for the
EU Taxonomy (see paragraph 1.8.1.2 of the 2022 URD). The
difference between eligible and aligned turnover is detailed
in paragraph 2.8.3 “EU Taxonomy Indicators Methodology”.
It should be remembered that an activity can only be
considered eligible for the EU Taxonomy if it is included
in the list of economic activities for which the European
Commission has developed technical criteria, and that
increasing this indicator to 70% by 2027 represents a
challenge for Dassault Systèmes. In 2022, the Company
has set itself the extremely ambitious objective of having
70% of its turnover eligible for the EU Taxonomy by 2027.
This objective represents much more than a simple indicator;
it symbolizes a profound transformation which, on the one
hand, aims to improve Dassault Systèmes’ existing solutions
so that their use enables its customers to reduce their
environmental footprint, and, on the other hand, stimulates
the development of new solutions with a precise objective: to
enable customers to design tomorrow’s products, which will
need to be both innovative and environmentally sustainable.
in
Since the beginning of 2023, Dassault Systèmes has been
engaged in a systematic process to document its positive
impact on reducing greenhouse gas (GHG) emissions,
generated by operations, products or services designed by
its customers (see paragraph 2.8.3.2 “Main Methodological
Steps
initiative
identifying Aligned Turnover”). This
results in a detailed documentation of the use of its
solutions in projects aimed at sustainability enabling product
development, service delivery and operations optimization.
Thanks to this approach, it has been possible to accurately
measure the contribution of Dassault Systèmes technologies
to the mitigation of greenhouse gas emissions. The
methodology employed as well as each specific case study
have been certified by an independent external auditor. This
approach made it possible to calculate the proportion of
turnover considered as aligned with the EU Taxonomy, as
presented below.
In 2023, Dassault Systèmes is able to publish a percentage
of aligned turnover equal to 33.4%, i.e. approximately half of
its turnover considered eligible (67.3%) within the meaning
of the EU Taxonomy. The documentation and certification of
use cases will be continued in order to cover a wider scope of
the Dassault Systèmes solution portfolio.
1
1
43
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Environmental, Social and Governance Performance
The gradual alignment of Dassault Systèmes’ turnover target
with the EU Taxonomy is part of this approach. However,
given the evolving regulatory framework for EU Taxonomy,
the Company considers it premature to define an aligned
turnover objective this year. Nevertheless, the Company
has set this ambition for the beginning of 2025. A similar
approach could be applied to ESG performance criteria, which
are included both in the criteria used to determine the annual
variable compensation of the Company’s Executive Officer
(as well as that of the Executive Committee members),
and in the performance criteria governing the acquisition
of performance shares awarded to executives (and all
Company’s beneficiaries).
— for the second pillar, it was decided to introduce a
target linked to commitments to reduce greenhouse
gas emissions validated by the Science‑Based Targets
initiative (SBTi), in line with the objective of limiting
temperature rises to 1.5 degrees by the end of the
century (Scopes 1 and 2) and implementing current best
environmental practices (Scope 3);
— for the third pillar, it was decided not to proceed to any
modification.
1.8.1.1
Designing Solutions enabling Dassault Systèmes’ Customers
to reduce their Environmental Footprint
The EU Taxonomy regulation for sustainable activities,
passed in 2020 by the European Parliament, applies to
Dassault Systèmes, as a
in
the European Union and exceeding certain thresholds
set by the texts (Regulation (EU) 2020/852). Among the
listed company registered
six environmental objectives listed in the text, Dassault
Systèmes has considered that its contribution was essentially
material to climate change mitigation and to the transition to
a circular economy.
Several use cases representative of the implementation of
Dassault Systèmes’ solutions have been documented on the
relevant engineering, simulation, manufacturing, digitization
and logistics disciplines, as described in paragraph 2.8.3 “EU
Taxonomy Indicators Methodology”.
For each use case, the contribution of the solutions to the
climate change mitigation objective has been quantified
through a study of avoided emissions. The reference data
and data specific to each use case, as well as the calculation
methods, have been implemented (and certified) in compliance
with the standard methods and examination criteria mentioned
in the Climate Delegated Act related to Mitigation.
The definition of the architecture, governance and method
for linking and articulating the Dassault Systèmes solutions
portfolio with the objectives described in the Delegated
Acts and the markets served, has been the subject of work
involving many of the Company’s organizations, beyond the
non‑financial communication process. Indeed, the approach
by which Dassault Systèmes estimates, links and evaluates
the contribution of its solutions to the EU Taxonomy’s
environmental objectives is taken into account in the value
creation and articulation processes of its solutions portfolio
(current and under development), as well as in its value
articulation consulting approaches.
In 2024, Dassault Systèmes will continue its efforts to
document use cases representative of the impact of its
solutions, over an increasingly large part of its portfolio
and markets, and will continue to undertake certification
actions by an independent third‑party auditor, as well
as assessments of the technical criteria associated with
the Climate and Circularity objectives to meet alignment
publication requirements.
44
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Environmental, Social and Governance Performance
1.8.1.2
Committing to environmentally Sustainable Operations
In 2021, Dassault Systèmes joined the Science‑Based Targets
(SBTi) initiative, and aligned itself with a goal of limiting
temperature rises to 1.5 degrees by the end of the century
(Scopes 1 and 2) and implementing current environmental
best practices (Scope 3). At the end of 2022, Dassault
Systèmes resubmitted its emissions reduction trajectory
to SBTi in order to include the scope of MEDIDATA, whose
acquisition had been finalized at the end of 2019, and who
thus was not included in the first submission. This new
trajectory, validated by SBTi in 2023, is as follows:
— Scope 1 & 2: 35% reduction in GHG emissions by 2027,
compared with 2019;
— Scope 3 (business travel and employees’ commute):
20% reduction in greenhouse gas emissions by 2027,
compared with 2019;
— Scope 3 (purchases of goods and services and capital
goods): 50% of suppliers (measured in volume of GHG
emissions) who have defined science‑based emission
reduction targets.
The Group has also continued to improve its environmental
reporting by integrating new sources of environmental
impact such as water consumption, and has improved several
estimation methodologies, notably by using a hybrid method
(monetary emission factors or actual data from suppliers for
certain purchases of goods and services and capital goods).
These new elements provide a more exhaustive and accurate
view of environmental
impact, and partly explain the
variations observed since 2022. The environmental reporting
methodology is presented in paragraph 2.8.2 “Environmental
Reporting Methodology”, and detailed in the “Principles
of environmental accounting and consolidation”, reviewed
annually by an independent third‑party organization. For
further details on environmental performance indicators,
see paragraph 2.7.1 “Environmental, Social, Societal and
Governance Metrics”.
In 2023, the Company saw its Scopes 1 and 2 carbon
footprint decrease by 71% compared with 2019, the base
year for its SBTi targets, and by 6% compared with 2022,
despite the increase in exceptional emissions linked to
the maintenance of building refrigeration systems. This
improvement is mainly the result of energy‑sufficiency
efforts at major sites and more optimized use of the company
vehicle fleet, in line with the Company’s responsible mobility
policy. Renewable energy supply reaches 84% in 2023,
stable compared to 2022. In addition, as part of its objective
of carbon neutrality by 2040, Dassault Systèmes is acquiring
energy attribute certificates (EACs) to reduce residual
emissions linked to electricity consumed by its American and
Indian sites. Since 2023, these certificates have carried the
RE100 label to guarantee their quality. The carbon intensity
(emissions per number of employees) of the “location‑based”
Scopes 1 and 2, i.e. based on the energy mix of the countries
concerned and excluding the acquisition of EACs, has also
been reduced by 14% compared with 2022, thanks to the
implementation of an energy‑sufficiency policy at the
Company’s sites.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Environmental, Social and Governance Performance
Scope 3 emissions for “business travel and employees’
commute” were down 52% on 2019 and stable compared
with 2022, fully offsetting the Company’s headcount
increase (+5.7%), and demonstrating the tight control of
business travel.
The percentage of suppliers,
in GHG emissions, with
science‑based targets rose to 37% by the end of 2023 from
26% in 2022, marking an acceleration in the implementation
of decarbonization strategies across the Company’s value
chain.
Despite growth in headcount and activity, Dassault Systèmes
remains well positioned to meet its SBTi objectives for
Scopes 1, 2 and 3 emissions. The lead recorded at the end of
2023 is mainly due to the rapid implementation of ambitious
energy‑sufficieny and travel management policies, which
effects are expected to decrease as the Company grows.
1.8.1.3
Developing Human Capital in Respect of Diversity and Ethics
Diversity and creation of inclusive teams are key objective at
Dassault Systèmes to encourage creativity around innovative
projects and offer a fulfilling collective work environment.
This commitment is reflected in the composition of the
Company’s corporate governance:
— the proportion of women on the Board of Directors is
50%, higher than the 40% threshold required by law;
— the proportion of women in the Executive team is up
significantly compared to 2019 (22.2%) and in line with
the target set by 2027 (see paragraph 5.1.2. ”Executives
of Dassault Systèmes”).
In 2023, over 1,100 women joined Dassault Systèmes,
increasing their share by 7.8%, exceeding by more than 2
points the 5.7% growth rate of the overall workforce over
the same period. Focusing particularly on female profiles
as part of the process of identifying key employees and
development opportunities, the number of women People
managers is increasing by 20%, representing almost 140
women supported to reach managerial positions in 2023.
The Company’s purpose gives meaning to employees’
professional lives. The culture of innovation offers everyone
in
opportunities to contribute and engage, particularly
46
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Environmental, Social and Governance Performance
the fields of Education and Research. This dynamic is
illustrated by the annual 3DS INNOVATION Forwards, by
the pursuit of actions in favor of health and well‑being, in
particular as part of the We Care for Your Health program,
and by the continuous involvement of volunteers with La
Fondation Dassault Systèmes. In 2023, the employee pride
and satisfaction rate reaches close to 81%, down 0.8 point
compared to 2022.
Compliance with ethical rules and international standards
is an
integral part of Dassault Systèmes’ values (see
paragraph 2.6 “Business Ethics and Vigilance Plan”). Training
in ethics and compliance as well as Company’s responsibility
is mandatory for all employees, and is recurrent on an annual
basis to ensure that they have mastered the fundamentals
of ethics, compliance, personal data protection and
anti‑corruption. Training in the Code of Business Conduct
includes a presentation of the Whistleblowing procedure and
a commitment by each employee to respect the rules laid
down in this Code.
Paragraphs 2.7 “Environmental, Social and Governance
Metrics” and 2.8 “Reporting Methodology” detail all the
Company’s environmental, social, societal and governance
performance indicators, as well as the EU Taxonomy.
1.8.2
Main Ratings and Awards
Dassault Systèmes is recognized for its Environmental, Social and Governance commitment and was awarded the following
main ratings in 2023:
Dassault Systèmes’ commitment to sustainability, related actions and achievements, as well as key indicators and their
integration into the Company’s strategy, are detailed in chapter 2 “Social, Societal and Environmental Responsibility”.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Risk Factors
1.9
Risk Factors
The risk factors are set out hereafter in two main categories:
risks related to Dassault Systèmes’ business (1.9.1) and
financial and market risks (1.9.2). These are the main risks
identified as being material, specific to the Company and
likely to have a negative impact on its business and financial
position as of the date on which this Universal registration
document was filed with the French Financial Markets
Authority (AMF).
The presentation of the risks is the result of regular
analysis as part of the risk management policy referred
to in paragraph 5.2 “Internal Control Procedures and Risk
Management”. In each category, the risk factors are classified
in descending order of importance taking into account the
probability of seeing them materialize and the estimated
scale of their negative impact, and after taking into account
the mitigation measures put in place by Dassault Systèmes.
However, other risks not mentioned or not yet identified
can affect Dassault Systèmes, its financial position, its
reputation, its outlook or its share price.
1.9.1
Risks Related to the Business
Once mitigation measures taken into consideration, Dassault
Systèmes considers risks 1 to 5 to be of great importance,
risks 6 to 13 of medium importance and risks 14 and 15 of
low importance.
1.9.1.1
Uncertain Global Economic Environment
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 the automotive, aerospace,
industries, to reduce,
energy or natural resources
postpone or cancel 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
barriers or controls on the exchange of goods and
services;
— continued pressure or volatility on raw materials and
energy prices could also slow down Dassault Systèmes’
diversification efforts in new industries;
— uncertainties regarding the extent and duration of costs
inflation could adversely affect the financial position 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 political crises in
particular – could have consequences both for the health
and safety of Dassault Systèmes’ employees and for the
Company. It could also adversely
impact the financial
situation or financing and supply capabilities of Dassault
Systèmes’ existing and potential customers, commercial
and technology partners, some of whom may be forced to
temporarily close sites or to 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 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.
48
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 1.9.1.2
Security of Systems and Facilities
As Dassault Systèmes’ Research and Development and
operations are largely computer‑based, their effectiveness
is dependent on the proper functioning of complex software
and integrated hardware systems. It is not possible to
guarantee the uninterrupted operation and complete security
of these systems. Computer viruses, whether deliberately
or unintentionally introduced, could cause damage, loss or
delays. Moreover, in a context of increased cyber‑attacks
and the emergence of cyber‑terrorism, Dassault Systèmes
may be subject to computer attacks or intrusions that could
interfere with the proper functioning of its systems and
cause substantial delays or damage to its activities, not
to mention disclosures or thefts of data. Such attacks or
intrusions, potentially targeted, could also cause damage to,
losses or disclosures of customer data hosted by Dassault
Systèmes or some of its service providers as part of its cloud
offerings, or interruptions to the online service, for which
it may be held liable. The increasing use of mobile devices
(cellular telephones, tablets and laptops) linked to certain of
Dassault Systèmes information systems tends to increase
the risk of unauthorized access.
Likewise, some transactions require the use of off‑the‑shelf
interconnection systems, for example with most of the
banking partners of Dassault Systèmes and many other
suppliers. Dassault Systèmes requires from its services and
partners a high level of security and control so as to protect
the messages’ integrity and prevent attacks and intrusions
in Dassault Systèmes’ systems. However, these controls do
not eliminate all risks of indirect impact from cyber‑attacks
affecting Dassault Systèmes’ partners.
In addition, because Dassault Systèmes’ key facilities
and data centers are located in a limited number of sites,
including Japan and California, which may be exposed to
earthquakes, substantial physical damage to any one of
Dassault Systèmes’ sites, caused by natural causes (as a
direct or indirect result of climate change) or by terrorist
attacks or local violence, could materially reduce its ability to
continue its normal business operations.
1.9.1.3
Complex Regulatory and
Compliance Environment
regulations
Dassault Systèmes operates in a legal environment with
that are
multiple, sometimes conflicting,
constantly changing and becoming more complex as the
Group expands into various countries and business lines and
toward new customers and users (in particular individuals).
These regulations apply to many different fields, such as
general business practices, competitive practices, the fight
against corruption, the processing of personal data (including
health data), consumer protection, financial reporting
standards, securities law and corporate governance, internal
controls, employment laws and human rights protection,
international tax
environmental regulations,
for high‑tech
regulations, export control
regulations
local and
PresentatIon of the Company
Risk Factors
products and sanction programs. Besides, the introduction
of newly created or stricter regulations in countries where
Dassault Systèmes operates or will operate could materially
increase compliance costs. Enforcement of digital economy
or climate change‑specific taxes could also negatively impact
the net result of Dassault Systèmes.
In order to conduct its business in a wholly ethical manner,
the Company requires all of its employees, subsidiaries,
retailers and intermediaries to comply with all applicable
laws and regulations. Dassault Systèmes broadly relies on
a large number of distributors and retailers to support the
licensing of its software products and the deployment of its
solutions (as described in paragraph 1.9.1.7 “Relationships
with Extended Enterprise Partners”). Although Dassault
Systèmes has implemented a program to ensure that these
third parties fully comply with all applicable laws and
regulations, especially the highest ethical standards, export
compliance regulations, sanctions programs or competition
law, Dassault Systèmes’ business and reputation could be
negatively impacted in the event such third parties were to
breach local or international laws.
The failure or suspected failure to comply with these
regulations may result in inquiries or investigations by the
relevant authorities, or even fines and sanctions, as well as
an increase in Dassault Systèmes’ litigation risk or a negative
impact on its business operations, revenue or reputation. A
number of these adverse consequences could occur even if
it is ultimately determined that there has been no failure to
comply.
1.9.1.4
Protection of Dassault Systèmes’
Intellectual Property Rights and Assets
Dassault Systèmes’ success is heavily dependent upon
its proprietary software technology. Dassault Systèmes
relies on a combination of copyright, patent, trademark,
trade secret law and contractual restrictions to protect
its technology. These legal protections may not provide
a full coverage of the Company’s products and could be
breached by third parties. In addition, some countries do
not have effective protection against
infringements of
copyright, trademarks, trade secrets or patents, or they
may be limited in comparison to what exists in Western
Europe or the United States. If, despite Dassault Systèmes’
strategies for protecting its intellectual Property, certain
third parties are able to develop similar technology, notably
using artificial intelligence, or to successfully challenge the
Company’s intellectual property rights, a reduction in the
Company’s software revenue may ensue. Furthermore,
although Dassault Systèmes enters
into confidentiality
agreements with its employees, distributors, customers
and potential customers and limits access to and carefully
controls the distribution of its software, documentation
and other proprietary information, the measures taken
may be inappropriate to deter misuse of its technology,
the unauthorized disclosure of confidential information, or
prevent its utilization by third parties.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Risk Factors
In addition, like most of its competitors, Dassault Systèmes
faces a significant level of piracy of its leading products,
both by individuals and companies operating worldwide,
which could potentially affect Dassault Systèmes’ growth in
specific markets.
Litigation may be necessary to enforce Dassault Systèmes’
intellectual property rights and determine the validity
and scope of the proprietary rights of third parties. Any
litigation could entail substantial costs and the mobilization
of Company resources and could significantly weigh on
Dassault Systèmes’ operating income. Dassault Systèmes
may not prevail in all such litigation and its intellectual
property rights may be found invalid or unenforceable.
Such difficulties may also lead to the loss of customers,
or even in the case of the largest customers a potentially
significant
loss of revenue with their subcontractors.
Technical problems, or the loss of a customer with a global
reputation, could also damage Dassault Systèmes’ own
business reputation and cause the loss of new business
opportunities. Were customers to suffer financial or other
damage because of product errors, delays or defects in
the software solutions provided, including online, such
customers could pursue claims against Dassault Systèmes.
Any resulting claim brought against Dassault Systèmes,
even if not successful, would likely be time‑consuming for its
management and costly to defend and could adversely affect
Dassault Systèmes’ marketing efforts and reputation.
1.9.1.5
Deployment Delays and Errors
software
sophisticated
Deploying
solutions becomes
increasingly complex and these projects are often critical
to Dassault Systèmes’ customers. Such projects need to
take into account the customers infrastructure and diverse
software environment. Appropriate project and change
management controls are also critical to the success of
deploying complex software solutions that affect a large
number of users across multiple organizations and processes.
Customers may implement Dassault Systèmes’ solutions
using system integrators that Dassault Systèmes does not
control. If, when it is in charge of the deployment, Dassault
Systèmes is not able to execute these projects in a timely
manner, it might need to commit additional resources, which
could adversely impact its operating income.
Sophisticated
software can contain errors, defects,
vulnerabilities or other performance problems when first
introduced or when updates or new versions are released.
The integration of such software also involves the services
of third parties, whose quality is not controlled by Dassault
Systèmes. Dassault Systèmes may not be able to correct
such errors or defects in a timely manner and may need to
expend additional resources.
Similarly, the growing adoption of cloud‑based software
solutions by our customers, particularly in areas or processes
in customer
critical to their operations, could result
complaints related to the performance and availability
of online services or data loss, which may be caused by
interruptions or attacks on the infrastructure providers used
to host these online services.
50
1.9.1.6
Organizational and Operational
Challenges Arising from the
Evolution of Dassault Systèmes
Dassault Systèmes has continued to expand through
acquisitions and internal development and has substantially
increased
launching
3DEXPERIENCE.
its addressable market
through
The Company’s management policies and internal systems
must be adapted on an on‑going basis to meet the needs of
a larger, more complex structure and implement Dassault
Systèmes’ strategy to reach a broader market. Dassault
Systèmes must continue to reorganize to maintain efficiency
and operational excellence while ensuring customer
retention and the integration of newly acquired companies.
It must also continue to focus on quality of execution while
maintaining innovation.
Dassault Systèmes must also ensure that the profile and skill
sets of its employees are continually updated to reflect the
Company’s development and retain employees, notably from
newly acquired companies.
If Dassault Systèmes fails to resolve these issues effectively
and in a timely manner, its product development, cost
management and business operations may be affected
or may not adequately meet market and customer
expectations. This could have a negative impact on its
operational or financial performance.
Furthermore, consolidating newly acquired companies,
particularly large ones, is a challenge. Newly acquired
companies may also carry risks (such as litigation or events
related to pre‑acquisition practices potentially unknown
at the date of acquisition and sometimes
identified
post‑acquisition, e.g.
tax, ethics and compliance or
intellectual property claims).
Furthermore, these acquisitions, including of non‑controlling
interests, may also require Dassault Systèmes to recognize
amortization expenses on
intangible assets and/or
impairments of goodwill in (see Note 2 to the consolidated
financial statements). When making new acquisitions or
investments, Dassault Systèmes may need to allocate
significant financial resources, to make potentially dilutive
issuances of equity securities or to incur debt.
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Risk Factors
1.9.1.7
Relationships with Extended
Enterprise Partners
1.9.1.8
Legal Proceedings – Reputation Risks
Dassault Systèmes’ 3DEXPERIENCE strategy requires a fully
integrated platform with access to computer‑aided design
(“CAD”), simulation, collaboration, manufacturing and data
management products, which are increasingly complex and
the deployment of which represents significant enterprise
projects for customers. Dassault Systèmes has continued
to develop an extended enterprise model and implement its
3DEXPERIENCE model in partnership with other companies
in areas such as:
— computer hardware and
technology,
to maximize
benefits from available technology;
— product development, to enable software developers to
create and market their own software applications using
Dassault Systèmes’ open product architecture; and
— consulting and professional services, to support and
assist customers as needed to deploy Industry Solution
Experiences on the 3DEXPERIENCE platform.
Dassault Systèmes believes that its partnering strategy
allows it to benefit from complementary resources and skills
and to reduce costs while achieving broader market coverage,
especially in diversification industries or emerging markets.
Dassault Systèmes’ broad partnering strategy nevertheless
creates a degree of dependency on such partners.
In addition to its own sales force, Dassault Systèmes also
relies on an
international network of distributors and
value‑added retailers. The type of relationship that the
Company has with its distributors and value‑added retailers,
as well as their financial and technical reliability and their
ability to invest, especially in diversification industries, could
impact Dassault Systèmes’ ability to sell and deploy its
product and service offerings.
Dassault Systèmes’ ability to establish partner relationships
for the development, distribution and deployment of its
3DEXPERIENCE platform is an important element of its
strategy.
Serious difficulties in the Company’s relationships with
its partners, or an unfavorable change of control of these
partners, may adversely affect Dassault Systèmes’ product
and business development and could cause it to lose the
contribution of such partners. In addition, any failure or
significant changes in the terms and conditions of its partners
or a change in its ecosystem could result in delays, defects or
other damaging consequences for Dassault Systèmes.
Due to the rapid evolution of the software development and
distribution sectors, it is difficult to ensure the long‑term
success of Dassault Systèmes’ relationship with any
particular partner.
risk of
inquiries,
Dassault Systèmes’
litigation and
administrative proceedings increases as it expands into new
activity areas (including product distribution and online
services), economic sectors (in particular in the healthcare
and infrastructure businesses) or geographic regions, and
as it grows and enhances its position and visibility on
the market. These can be lengthy, expensive, disrupt the
management of the Company’s operations and can damage
its reputation, including in cases of actions that have no legal
basis.
in
In particular, stakeholders’ expectations
the ESG
(Environment, Social and Governance) fields are growing and
may exceed the legal and regulatory requirements in force
(for example, in the fight against climate change and the
protection of human rights). Despite its commitment, which
is reflected in ambitious action plans that may go beyond the
obligations in this area, the Company could be the target,
directly or through its ecosystem, of legal or media actions,
the negative effects of which could become apparent even
in the event of compliance with regulations or benchmarks,
particularly with regard to ESG.
The outcome of legal or administrative investigations and
proceedings is uncertain and may differ from the team’s
expectations, which could result in an adverse impact on its
financial position and operating income, or even the conduct
of its operations and reputation.
1.9.1.9
Ability to Attract and Retain Talents
Dassault Systèmes’ success mainly depends on its ability
to attract, motivate and retain key executives, as well as
employees with a high level of skills and the diverse talent
required for the Group’s various activities.
Competition for such employees is high, and if Dassault
Systèmes
loses the ability to hire and/or retain key
employees and executives, in particular those at its newly
acquired companies, its activities, revenue and operating
income could be negatively impacted.
Dassault Systèmes does not insure against the loss of key
personnel.
1.9.1.10
Variability in Dassault Systèmes’
Quarterly Operating Income
Dassault Systèmes’ quarterly operating income may vary
significantly, depending on factors such as:
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Risk Factors
— the timing and the cyclical nature of revenue received
due to the signing of important new customer orders,
the completion of service contracts and customer
deployments;
— the timing of any significant acquisition or divestiture;
— fluctuations in foreign currency exchange rates;
— Dassault Systèmes’ ability to develop, introduce and
market new and enhanced versions of its products and
customer order deferrals in anticipation of these new or
enhanced products;
— the number,
timing and significance of product
enhancements or new products that either Dassault
Systèmes markets or that are released by its competitors;
— general conditions in the software markets (as a whole or
on a regional basis) and the software industry generally;
and
— the growing difficulty in planning and forecasting as new
business models are introduced in the industry alongside
the traditional licensing model.
A substantial portion of Dassault Systèmes’ orders and
shipments typically occur in the last month of each quarter;
therefore, if any delay occurs in the timing of significant
orders, Dassault Systèmes may experience quarterly
fluctuations in its operating income. Additionally, as is typical
in the software industry, Dassault Systèmes has historically
experienced its highest licensing activity for the year during
the last quarter of the year, in particular the last month.
Delays in orders and shipments can also affect Dassault
Systèmes’ revenue and income.
The trading price of Dassault Systèmes’ shares may be
subject to wide fluctuations
in response to quarterly
variations in its operating income and in the income of other
software application developers
in Dassault Systèmes’
markets.
1.9.1.11
Competition and Business
Model Transformation
In the past few years, there have been fewer competitors
in Dassault Systèmes’ historical software markets. As the
various players compete for market share, adoption by
competitors of business models different from Dassault
Systèmes’ could lead to substantial declines in pricing, which
could require Dassault Systèmes to adapt to a substantially
different commercial environment. These competitive
pressures on pricing and the nature of the offer could lead
to competitors winning contracts, negatively impacting
Dassault Systèmes’ revenue, financial performance and
market position.
At the same time, by regularly expanding its product
portfolio, entering new geographic markets, diversifying
its customer base in new sectors of activity and developing
52
new applications for
its products, Dassault Systèmes
encounters new competitors. Because of their size or prior
presence in these markets, such competitors could have
greater financial or human resources, particularly financial or
human resources, and be able to withstand current or future
technological breakthroughs.
The development of SaaS offers may also lead to new
participants entering the market. Dassault Systèmes’ ability
to expand its competitive position may thus be impaired.
Indeed, Dassault Systèmes continues to grow and promote
its portfolio of software solutions and processes available
on the cloud. The introduction of such solutions with the
appropriate pricing model and with the right level of quality,
especially in the face of increasing customer demands for
scale, security, availability and performance of these online
services, could affect Dassault Systèmes’ growth and future
results.
The progressive roll‑out of these services and their
distribution also requires the deployment of new sales,
support and management processes and expertise in those
areas, in particular to support changes of subscription
methods for some customers.
In the event the Company has difficulties setting up the
organization needed to manage its businesses and the new
competitive environment, Dassault Systèmes’ revenue,
financial performance, market position and reputation could
be negatively impacted.
1.9.1.12
Rapidly Changing and
Complex Technologies
Dassault Systèmes’ software solutions are characterized
by the use of rapidly changing technologies and through
upgrades to existing products or frequent new product
introductions. These solutions must address complex
in various areas of product design,
engineering needs
simulation and manufacturing and must also meet
sophisticated process requirements, especially when
it
comes to change management, industrial collaboration and
cross‑enterprise work.
As a result, Dassault Systèmes’ success is highly dependent
upon its ability to:
— understand its customers’ complex needs in different
business sectors;
— support customers with their efforts to improve key
product lifecycle processes;
— enhance
its existing solutions by developing more
advanced technologies;
take
— anticipate and
timely advantage of quickly
evolving technologies and standards, including artificial
intelligence;
— ensure that its employees are trained to the newest
technologies; and
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT — introduce new solutions in a cost‑competitive and timely
manner.
the
integration of
increasingly sophisticated
Dassault Systèmes also continues to face the challenge
its
of
products’ different functionalities to address customers’
requirements. As a result, more difficult development work
is required for new releases and offerings, with technical
limitations, for example in managing data migration or
the options for interfacing with third‑party systems used
by customers. In addition, if Dassault Systèmes is not
successful in anticipating technological leaps and developing
new solutions and services that address its customers’
increasingly sophisticated expectations, demand for
its
products could decline and Dassault Systèmes’ operating
income and financial condition could be negatively affected.
1.9.1.13
Technology Stock Volatility
Under conditions of
increased market uncertainty, the
trading price of Dassault Systèmes’ shares could be volatile.
The market for shares of technology companies is generally
more volatile than the general stock market.
1.9.1.14
Infringement of Intellectual
Property Rights and of Third‑
Party Technology Licenses
Third parties, including Dassault Systèmes’ competitors,
may own or obtain copyrights, patents or other intellectual
property rights that could restrict Dassault Systèmes’ ability
to further develop, use or sell its own product portfolio,
potentially inherited from acquisitions. Dassault Systèmes
has received, and may in the future receive, letters of
complaint alleging that its products infringe the patents and
other intellectual property rights of others. Such claims could
cause Dassault Systèmes to incur substantial costs to defend
itself in any litigation that may be brought, regardless of
its merits. In the event that its legal defense fails, Dassault
Systèmes may be required to take one or more of the
following actions:
1.9.2
Financial and Market Risks
Dassault Systèmes overall risk management policy is based
upon the prudent management of the Company’s market
risks, primarily foreign currency exchange risk and interest
rate risk. Dassault Systèmes’ management of these risks,
including the use of hedging instruments, is discussed in
Note 20 to the consolidated financial statements. Dassault
Systèmes’ exposure to these risks may change over time and
there can be no assurance that the benefits of the Company’s
risk management policies will exceed the related costs.
Such changes could have a materially adverse impact on the
Company’s financial results.
PresentatIon of the Company
Risk Factors
1
— obtain and pay for licenses from the holder of the
infringed intellectual property right, which might not be
available on acceptable terms for Dassault Systèmes, if at
all; or
1
— redesign its products or services, which could involve
substantial costs and require Dassault Systèmes to
interrupt product licensing and product releases. This
may not be feasible at all and may require products
enhancements to be put on hold.
In addition, Dassault Systèmes embeds in its products
third‑party components selected either by Dassault
Systèmes itself or by companies it has acquired. Dassault
Systèmes has implemented strict approval processes to
certify the originality of third‑party components and verify
any corresponding
licensing terms. The same approval
processes may not have been adopted by companies
acquired by Dassault Systèmes before their acquisition. As
a result, the use of third‑party embedded components in
Dassault Systèmes’ products generates exposure to the risk
that a third party may claim that such components infringe
their intellectual property rights. There is also a risk that such
license(s) might expire or terminate without renewal, thereby
affecting certain Dassault Systèmes products.
If any of the above situations were to occur for one of the
Company’s significant product, it could have a material
adverse impact on Dassault Systèmes’ financial condition
and operating income.
1.9.1.15
Shareholder Base
Groupe Industriel Marcel Dassault SAS (“GIMD”), the main
shareholder of Dassault Systèmes SE and of which the
Chairman until January 2025 is Charles Edelstenne, Founder
and Honorary Chairman of Dassault Systèmes SE, owned
40.02% of Dassault Systèmes SE’s outstanding shares,
representing 53.93% of the exercisable voting rights (53.31%
of theoretical rights) as of December 31, 2023.
Dassault Systèmes generates positive cash flows from
operations and has financial borrowings and liabilities (e.g.,
bonds, bank loans, loan facilities, employee profit‑sharing).
Taking into account the mitigation measures implemented,
the Group considers risk 1 to risk 3 of medium importance
and risks 4 of low importance (all four risks discussed below
herein).
53
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Risk Factors
1.9.2.1
Foreign Currency Risk
— the revaluation of monetary assets and
liabilities
denominated in foreign currencies.
Since market growth rates for Dassault Systèmes’ software
applications and the revenue growth rates of its significant
competitors are computed in U.S. dollars, such growth rates
from period to period may not be comparable to Dassault
Systèmes’ euro‑computed revenue growth rates for the
same periods.
See Note 20 to the consolidated financial statements.
1.9.2.2
Credit or Counterparty Risk
to credit
risk
term
The financial instruments which could expose Dassault
include principally
Systèmes
its cash
equivalents, short‑
investments and customer
receivables. The hedging agreements entered into with
financial institutions pursuant to its policy for managing
currency and interest rate risks also expose the Company
to credit and counterparty risk. See Notes 12, 13 and 20 to
the consolidated financial statements. Dassault Systèmes
uses a rigorous selection process for
its counterparts
according to credit quality, based on several criteria including
agency ratings and depending on the maturity dates of the
transactions.
1.9.2.3
Liquidity Risk
Dassault Systèmes’ liquidity risk corresponds to the risk
of not being able to meet its monetary needs thanks to its
financial resources. It depends in particular on the level of
Dassault Systèmes exposure to changes in the main market
parameters, which could lead to higher credit costs, or
even temporary limitation of access to external sources of
financing.
Dassault Systèmes manages this risk by anticipating its
liquidity needs and ensures its coverage with short and
long‑term financial resources.
On November 17, 2023, Standard & Poors Global Ratings
reaffirmed their “A” rating with a Stable outlook for Dassault
Systèmes SE and its long term debt.
As of December 31, 2023, Dassault Systèmes’ cash, cash
equivalents and short‑term investments totaled €3.57 billion.
See Note 12 to the consolidated financial statements.
Dassault Systèmes has analyzed the amounts it will be
required to pay under its contractual commitments as of
December 31, 2023 and believes that it will be able to meet
such obligations.
Dassault Systèmes’ operating income can be affected by
changes and high volatility in exchange rates. In particular,
exchange rate fluctuation of the Japanese yen, the U.S.
dollar and to a lesser extent of the British pound, the South
Korean won and the Chinese yuan relative to the euro, can
affect revenue and expenses recorded in Dassault Systèmes’
statement of income upon translation of other currencies
into euro.
incurs expenses
Dassault Systèmes bills its customers in major currencies,
principally euros, U.S. dollars and Japanese yen. Dassault
Systèmes also
in different currencies,
principally euros, U.S. dollars and Japanese yen, depending
on Dassault Systèmes’ employees and suppliers’ location in
different countries. Moreover, Dassault Systèmes engages in
mergers and acquisitions, particularly outside the euro zone
and may lend money in different currencies to its wholly‑ or
partially‑owned subsidiaries or affiliates.
Although Dassault Systèmes currently benefits
from
a natural coverage of most of its exposure to the U.S.
dollar from an operating margin perspective, exchange
rate fluctuation of the U.S. dollar relative to the euro may
impact its’ revenue and consequently its operating income,
net income and earnings per share. In addition, Dassault
Systèmes’ revenues denominated in Japanese yen, Chinese
yuan, Korean won and British pound substantially outweigh
in these currencies. As a result, any
its expenditures
depreciation in the value of these currencies – in particular
the Japanese yen, and to a lesser degree the Chinese yuan,
British pound and South Korean won – relative to the euro,
would affect the revenue, operating income and margin, net
income and earnings per share.
Dassault Systèmes’ net financial
income can also be
significantly affected by changes in exchange rates between
the time the income is recognized and when payments are
received and between the time an expense is recorded and
when it is paid. Any such differences are accounted for in
the “Foreign exchange gain/loss, net” caption of Dassault
Systèmes’ financial statements.
The main items of financial income subject to fluctuations
linked to exchange rates are:
— the difference between the exchange rate used to record
invoices in foreign currencies and the exchange rate
when Dassault Systèmes receives or makes the payment;
and
54
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT PresentatIon of the Company
Risk Factors
The following table summarizes Dassault Systèmes’ principal contractual obligations to make future payments as of
December 31, 2023:
Contractual obligations
(in millions of euros)
Operating lease obligations (1)
Loan facilities (2)
Employee profit‑sharing
TOTAL
Total
717.4
3,029.0
63.9
3,810.3
Less than
1 year
89.1
955.9
63.9
1,108.9
Payments due by period
1‑3 years
3‑5 years
187.1
911.4
‑
1,098.5
176.0
8.6
‑
184.6
More than
5 years
265.2
1,153.1
‑
1,418.3
(1) Corresponds to undiscounted lease liabilities payments (refer to Note 18 to the consolidated financial statements).
(2)
Including financial interest on commercial papers, interest on bond stocks as well as interest on the revolving line of €750.0 million (refer to Note 19 to the consolidated
financial statements).
1.9.2.4
Interest Rate Risk
Dassault Systèmes’ interest rate risk would primarily translate into a reduction of its net financial revenue. See Notes 19 and
20 to the consolidated financial statements.
1.9.3
Insurance
Dassault Systèmes has contracted with several insurance
companies for all significant risks incurred. Most of these
risks are covered either by insurance policies underwritten
in France for all Dassault Systèmes companies, or by a
US policy that covers the US subsidiaries and their own
subsidiaries and branches around the world. In addition, the
Company subscribes to specific coverage and/or local policies
to comply with applicable local regulations or to meet the
specific needs of certain activities or projects.
All of the Group’s companies are protected by a policy
covering professional and product
liability as well as
civil liability for operations for a total insured value of
€150 million for 2023.
Dassault Systèmes has also taken out other insurance
policies covering, in particular, damage to the property of the
Company’s various sites, equipment and computer goods.
Based on the legal requirements applicable in each country,
the US companies of Dassault Systèmes and most of their
subsidiaries have specific insurance coverage. This insurance
includes coverage for property damage and professional
civil liability. In connection with this insurance, Dassault
Systèmes also has coverage for work‑related accidents in
the United States in accordance with applicable regulations.
As additional coverage for the various insurance policies
covering US companies and their subsidiaries, Dassault
Systèmes carries an “umbrella” policy for a maximum
amount of $25 million.
The insurance policies are regularly reviewed and may be
modified to reflect changes in the revenue, the activities and
risks incurred by Dassault Systèmes worldwide, as well as
the integration of newly acquired companies.
Dassault Systèmes has not established captive insurance
coverage.
1
1
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 1
PresentatIon of the Company
Risk Factors
56
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
2
Social, Societal and Environmental Responsibility
SOCIAL, SOCIETAL
AND ENVIRONMENTAL
RESPONSIBILITY 2
2
2.1
2.2
2.3
2.3.1
2.3.2
2.3.3
2.3.4
2.3.5
2.4
2.4.1
2.4.2
2.4.3
2.4.4
2.5
2.5.1
2.5.2
2.5.3
2.5.4
2.5.5
2.6
2.6.1
2.6.2
2.6.3
2.6.4
2.6.5
2.7
2.7.1
2.7.2
2.8
2.8.1
2.8.2
2.8.3
2.9
2.9.1
2.9.2
2.10
Sustainability Governance
Social, Societal and Environmental Risks
Social Responsibility
Attracting Talented Individuals
Developing Knowledge and Know‑how
Preserving Health, Safety and Well‑Being in the Workplace
Rewarding and Retaining Talents
Promoting Diversity and Inclusion
Societal Responsibility
Secure Data and Systems
Protecting Personal Data
Innovate for a Sustainable Future
Philanthropy: Committing to Education and Research
Environmental Responsibility
Environmental Governance
Climate
Water and Marine Resources
Biodiversity and Ecosystems
Circular Economy and Resource Use
Business Ethics and Vigilance Plan
Promoting Strong Business Ethics
Striving for Transparent Business Relations
Committing to Ensure Respect for Human Rights and Fundamental Freedoms
Committing to a Responsible and Transparent Tax Policy
Maintaining an Appropriate Vigilance Plan
Environmental, Social and Governance Metrics
Environmental, Social, Societal and Governance Metrics
Key Performance Indicators of the EU Taxonomy Regulation
Reporting Methodology
Social, Societal, Business Ethics and Vigilance Plan Reporting Methodology
Environmental Reporting Methodology
EU Taxonomy Indicators Methodology
Appendices
Glossary of Abbreviations
EU Taxonomy Appendices
Independent Verifier’s Reports
2.10.1
2.10.2
Independent third party’s report on consolidated non‑financial statement
presented in the management report
Limited assurance report from one of the Statutory Auditors on
Dassault Systèmes’ key performance indicators of the EU Taxonomy
regulation for the year ended December 31, 2023
2.11
Statutory Auditors’ Attestation on the information relating to the
Dassault Systèmes SE’s total amount paid for sponsorship
62
65
67
68
69
71
73
75
77
77
81
83
88
93
94
96
117
118
119
124
124
128
130
132
133
135
135
141
146
146
147
148
153
153
155
161
161
165
168
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Social, Societal and Environmental Responsibility
2
Dassault Systèmes’ purpose is to provide businesses and
people with 3DEXPERIENCE universes enabling them to
imagine sustainable innovations, capable of harmonizing
product, nature and life.
The virtual twins of the 3DEXPERIENCE platform enhance
reality by enabling the modeling, simulation and optimization
of products, materials, manufacturing processes and entire
systems. More than a place to represent the imaginary, they
are an experience of the possible, a gateway to the real. In
this way, 3DEXPERIENCE gives concrete expression to the
sustainable innovation required for customer transition. It
fosters the emergence of more efficient business models
for a more sustainable, generative economy, drawing on its
workforce and an ecosystem of external stakeholders.
Thanks to its purpose, and in addition to the environmental
objectives measured notably using the EU Taxonomy
referential, Dassault Systèmes contributes to the broader
objectives of sustainable development, particularly social
objectives, as defined within the United Nations Sustainable
Development Goals.
The Company is particularly active in the following areas:
SDG3 (Good Health and Well‑Being) via the MEDIDATA
and BIOVIA brands;
SDG4 (Quality Education) via the dedicated education
offer;
SDG7 (Affordable and clean energy) via the CATIA,
SIMULIA and SOLIDWORKS brands;
SDG9 (Industry, innovation and infrastructure) via
the CATIA, SOLIDWORKS, SIMULIA, DELMIA and
ENOVIA brands;
SDG 12 (Responsible consumption and production)
via the BIOVIA, SIMULIA and DELMIA brands;
SDG13 (Climate action) via the CATIA, SOLIDWORKS,
SIMULIA and DELMIA brands.
Sustainability is therefore at the heart of Dassault Systèmes’
mission. Its strategy is based on three pillars and priority
actions:
— designing solutions enabling customers to reduce their
environmental footprint: harmonize the product portfolio
by facilitating innovation for a generative economy;
— committing to environmentally sustainable operations:
reduce its GHG emissions, achieve carbon neutrality and
encourage suppliers to adopt a similar approach;
— developing human capital in respect of diversity and
ethics: promote gender equality, ethics and compliance,
and strengthen employee commitment.
In order to meet all these challenges, each of these priority
actions is subject to measurable targets for 2025 or 2027, the
performance of which is monitored in detail in paragraphs
2.3 “Social Responsibility”, 2.5.2.6 “Climate Performance
“Circular Economy Performance
Indicators”, 2.5.5.6
Indicators” and 2.7 “Environmental, Social and Governance
Metrics”.
These objectives are consistent with the pre‑conclusions
of the work carried out in preparation for the adoption of
the new sustainability reporting standards defined by the
Corporate Sustainability Reporting Directive (CSRD) adopted
by the European Parliament on November 10, 2022 and
transposed into French law on December 6, 2023.
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Social, Societal and Environmental Responsibility
› Sustainability Objectives
› Commitments to Customers
In 2023, Dassault Systèmes stepped up its support for
customers to provide them with solutions that make it easier
for them to achieve their decarbonization and greenhouse
gas (GHG) emissions reduction objectives. Sales forces now
have at their disposal methods for articulating, estimating
and quantifying the potential contribution of the portfolio
of sustainability enabling solutions, to the reduction of GHG
emissions within customers’ industrial processes.
Aware that most environmental impacts are determined
during the product design phase, the Company continues
to promote an eco‑design training program among its
customers and partners. The aim is to pass on to as many
people as possible the basic knowledge required to
systematize the eco‑design method and the use of the Life
Cycle Assessment (LCA) measurement tool integrated into
Dassault Systèmes solutions.
2
2
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Social, Societal and Environmental Responsibility
2
New customer deployment cases, detailed in paragraphs
2.5.2.4.1 “Supporting Customer Transition with regards to
Climate Change”) and 2.5.5.4.1 “Supporting the Service
Economy”, document the environmental contribution of
Dassault Systèmes’ solutions.
Precise analysis of these targeted case studies has made it
possible to demonstrate the GHG avoidance and reduction
potential of past and current industrial programs. These
cases are certified by an independent third party as part of
the verification of EU Taxonomy indicators, and cover a broad
spectrum of solutions and industrial sectors.
In line with its objective of promoting sustainable innovation,
the Company has defined a 3DS Acceptable Use Policy. In
accordance with this policy, Dassault Systèmes does not
engage with new customers meeting certain criteria in
four market segments, and/or does not develop dedicated
products or services in these segments. These market
segments are coal for energy purposes, tobacco (including
the production of electronic cigarettes), “universally
prohibited” weapons, and oil and gas where no public
commitment to reduce carbon emissions has been made
(see also paragraph 2.6.3 “Committing to Ensure Respect for
Human Rights and Fundamental Freedoms”).
The financial evaluation of the climate transition, as
recommended by the TCFD and CSRD, is also the subject
of internal work, as is the estimation of the eligibility
and alignment rates mentioned
in the EU Taxonomy.
These different fields of analysis, detailed respectively in
paragraphs 2.5.2.1 “Climate‑related Impacts, Risks and
Opportunities” and 2.7.2 “Key Performance Indicators of the
EU Taxonomy Regulation”, directly echo the sustainability
enabling solutions and virtual twins that Dassault Systèmes
offers its customers to enable more sustainable innovations.
These solutions can support the adaptation of its ecosystem
of customers and partners to climate change, and foster their
transition to a low‑carbon economy. Examples of use cases
of these solutions are presented in paragraphs 2.5.2.4.1
“Supporting Customer Transition with regards to Climate
Change” and 2.5.2.2.2 “Promoting and Designing New
Offers”.
In addition to these internal actions and those aimed at
its customers and partners, Dassault Systèmes is publicly
committed to sustainability, as demonstrated by the
initiatives to which the Company subscribes and supports.
For example, Dassault Systèmes is a signatory of the United
Nations Global Compact (see Communication on Progress
in section “Cross‑reference Tables”), the We Mean Business
Coalition, Corporate Knights’ Action Declaration on Climate
policy, and SBTi’s 1.5°C Climate Ambition.
initiatives and
In addition to these
its commitment
to upholding the objectives of the Paris Agreement,
Dassault Systèmes works with other stakeholders to
combat climate change and promote the circular economy.
The Company has thus joined or continued its work with
several non‑profit organizations (see paragraph 2.5.2.4
“Resource use and Climate Action Plans”). In line with the
CSRD’s recommendations concerning the double materiality
assessment, the Company has also mapped its stakeholders
(see
their expectations of Dassault Systèmes
and
paragraph 2.2 “Social, Societal and Environmental Risks”).
› Climate Commitments within Operations
Through its actions, Dassault Systèmes is committed to
helping mitigate climate change. At the end of 2022, for
its responsibility by
example, the Company reaffirmed
submitting an extended version of its greenhouse gas
emissions reduction targets to the Science‑Based Targets
initiative. These targets now include emissions relating
to MEDIDATA’s activities (acquired at the end of 2019),
broaden the types of emissions retained and use more
precise estimation methodologies. They are still aligned with
a 1.5°C trajectory, and were validated in the second half of
2023 by SBTi (see paragraph 2.5.2.6 “Climate Performance
Indicators”).
of
to
its
part
climate
adaptation
As
change,
Dassault Systèmes has also initiated or pursued several
action plans aimed at optimizing the environmental impact
of its operations (see paragraph 2.5.2.4 “Resource Use and
Climate Action Plans”) or simplifying their monitoring. The
Company is developing a new in‑house solution to automate
and extend its environmental reporting, to better meet
CSRD requirements, particularly in terms of data reliability,
traceability and control.
This reduction trajectory is complemented by a second
internal objective of carbon neutrality by 2040 at the latest.
To this end, and in parallel with the actions already taken
to reduce its emissions and offset its carbon footprint, the
Company is building a global strategy of voluntary carbon
offsetting. As part of this, it is evaluating the possibility of
involving startups “à mission” (having declared their purpose
through a number of social and environmental objectives)
and using solutions available on the 3DEXPERIENCE platform
(see paragraph 2.4.3.2 “Facilitating Innovation and Collective
Intelligence”). Dassault Systèmes also plans to cover all
residual emissions from its Scopes 1 & 2 by 2030 at the
latest, and is considering a gradual roll‑out of its voluntary
carbon offsetting to eventually cover the residual emissions
from the Company’s worldwide operations by 2040 (i.e.,
Scopes 1 & 2, as well as emissions relating to procurement,
business travel, employees’ commute and waste).
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Social, Societal and Environmental Responsibility
2
To better account for the commitment of its employees and
encourage action, Dassault Systèmes also finalized in 2023
the revision of the internal Sustainability role, assigned to
some of its employees. It officially recognizes the change
agents in each of the Company’s main organizations, and
assigns them missions contributing to the achievement of
these reduction targets.
› Commitments to Employees
Employees are one of the Company’s most valuable assets,
at the heart of its mission and long‑term development.
Dassault Systèmes strives to be recognized as a benchmark
employer, engaging
talent and ensuring sustainable
employability in all its forms. Sharing common values is a
major stake; they inspire employees every day in the way
they act within the Company, with its customers and more
broadly in its ecosystem. Dassault Systèmes’ culture fosters
collaboration and open communication, enabling employees
to imagine, inspire and create new experiences. Diversity and
the creation of inclusive teams are part of the Company’s
objectives to enable the mutual enrichment of knowledge
and encourage creativity around meaningful projects.
2
› Commitments to Suppliers
integrated
throughout
Sustainability has been in the DNA of the Procurement &
Travel department for many years. Social, environmental
and ethical criteria are
the
procurement process, from the expression of need to
the choice of supplier. As part of its drive for continuous
improvement, this year Dassault Systèmes submitted its
application for the Responsible Purchasing and Supplier
Relations label (RFAR) to the French Business Ombudsman
(Médiateur des Entreprises) and the French National
Purchasing Council (Conseil National des Achats). By 2024,
Dassault Systèmes should be able to demonstrate that its
responsible procurement practices are aligned with the
ISO 20400 standard, and to continue improving them.
Supplier surveys are carried out on a regular basis.
These are used to assess the quality of the Company’s
procurement processes and supplier relations. In 2023, the
satisfaction index (Net Promoter Score – NPS) was 90% for
the Purchase‑to‑Pay process, and 86% for the suppliers’
on‑boarding process. Dassault Systèmes also pays particular
attention to its supplier payment deadlines.
› Education and Research Commitments
Dassault Systèmes continues its commitment to research
its dedicated missions of the
and education through
3DEXPERIENCE Edu and 3DEXPERIENCE Lab organizations,
as well as the programs and initiatives of La Fondation
Dassault Systèmes.
The Company implements programs to give current and
future generations the key skills the industry needs to
transform itself, and build a sustainable future for all.
According to internal estimates, in 2023, over 8 million
students used one or more of Dassault Systèmes’
technologies as part of their initial or lifelong training.
Dassault Systèmes welcomes startups, communities of
innovators and research or innovation laboratories that have a
lasting, positive impact on the world and society, supporting
projects around everyday themes, and drawing on various
innovation levers such as additive manufacturing, artificial
intelligence, big data or virtual and augmented reality.
Dassault Systèmes and its Fondation support initiatives aimed
at creating a fairer educational environment, instilling a taste
for science and technology, and fostering academic ambition
and commitment in all students, boys and girls alike, whatever
their social, cultural or geographical background. The approach
also encompasses specific initiatives in underprivileged areas,
where the challenge of education is particularly critical, as well
as actions to raise young people’s awareness of environmental
issues, and to strengthen the interaction of education with
the business world and industrial players. The Company and
its Fondation also support those who work daily to imagine a
more sustainable world through virtual worlds, helping them
to push back the boundaries of knowledge in fields such as
health, sustainable materials, ocean preservation and heritage.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
2
Social, Societal and Environmental Responsibility
Sustainability Governance
› Transparency Commitments related to non‑financial Policies and Performance
further
improved
line with
its medium‑ and
In 2023, Dassault Systèmes
its
Environmental, Social and Governance (ESG) performance,
long‑term objectives.
in
The Company obtained a “B” rating from the CDP
(“Environmental Management”), demonstrating the
its
commitment to the environment. Dassault Systèmes also
maintained its ranking in the FTSE4Good and Euronext
Eurozone ESG (Large 80) indexes. The Company retained its
top “AAA” rating from the MSCI non‑financial rating agency,
and improved its score on the EcoVadis questionnaire, placing
it at the 98 percentile of the companies best rated by this
organism.
Dassault Systèmes also ranks in the top percentile of
companies rated
in the software sector by Standard
& Poor’s (Global CSA score), retaining its fourth place.
Thanks to this result, the Company has also maintained
its presence in the Dow Jones Sustainability Index (DJSI)
for the third year running. This progression illustrates the
Company’s strategy in the fight against climate change, its
management of innovation and its development of human
capital. Nevertheless, Standard & Poor’s rating did not seem
to take into account all the improvements observed. That’s
why Dassault Systèmes made a number of requests to gain
a better understanding of the rating rules applied by the
agency, so as to be in a position to pursue its continuous
improvement approach. The Company regrets that to date,
despite several exchanges, these questions have remained
unanswered.
Dassault Systèmes also regrets that Standards & Poor’s
Global Ratings (S&P) has unilaterally chosen to discontinue
one of its offerings, to which the Company had subscribed
in 2022, and consisting of an independent and specific
its ESG performance. This evaluation,
assessment of
which took into account a number of specific aspects of
the Company’s business model, corporate governance and
corporate culture, came in at 84/100 score, higher than the
average score of 65/100 for the technology sector and for
all the companies evaluated by the agency. In its report, the
rating agency highlighted the Company’s key ESG strengths,
namely its management of greenhouse gas emissions and
waste, its focus on employees and diversity, and its levels
of transparency and reporting. S&P also rated the Board of
Directors’ awareness, culture and decision‑making with
regard to these issues as excellent, with a “Preparedness”
score of +9. The agency also recognized the successful
development and management of the Company’s long‑term
strategy, rooted in innovation and science, helping to
make its solutions offering relevant to a growing range of
industries.
information provided to
In 2024, Dassault Systèmes will pursue its environmental,
social and governance efforts, and will continue to
strengthen the quality of
its
stakeholders (and especially its prospects and customers,
whose solicitation on these subjects
is growing) by
through
sharing
benchmark non‑financial questionnaires (see paragraph 2.7
“Environmental, Social and Governance Metrics” for details
on the 2023 ratings). The Company also plans, as part of its
transparency and in line with CSRD recommendations, to
update and publish certain policies relating to its corporate
responsibility, such as:
its work, notably
the progress of
— “Responsible Digital” policy;
— “Responsible Real Estate” policy;
— “Responsible Mobility” policy;
— “Responsible Procurement” policy.
2.1
Sustainability Governance
in February 2012, Dassault Systèmes published
Back
its purpose, which aims to contribute to sustainable
development in all its components: to provide companies and
individuals with 3DEXPERIENCE universes enabling them
to imagine sustainable innovations, capable of harmonizing
product, nature and life.
This purpose determines not only the choice of acquisitions
and product developments, but also the culture and values of
the Company and each of its organizations.
Social, societal and environmental responsibility (CSR) is at
the heart of Dassault Systèmes’ strategy and achievements.
It is applied at every level of the Company:
— the Board of Directors takes sustainable development
into account when defining and reviewing
issues
strategy, in accordance with its internal regulations and
French law. In accordance with the AFEP‑MEDEF Code,
it sets out strategic orientations in this area over several
years;
— Within the Board of Directors, Dassault Systèmes has
appointed Geneviève Berger, independent director to
review the company’s ESG (Environment, Social and
Governance) objectives, action plans and achievements,
before reporting to the Board;
62
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT — each Board of Directors committee (made up exclusively
of independent directors) is in charge of sustainability in
line with its mission:
– the Scientific Committee examines the evolution
of Dassault Systèmes’ portfolio of sustainability
enabling solutions and analyzes potential technological
breakthroughs impacting its market,
– the Audit Committee includes in its annual program
the review of new ESG reporting requirements and all
related matters,
– the Compensation and Nomination Committee reviews
a number of corporate governance matters, including
succession plans for Executive officers and members
of the Executive Committee, their compensation
packages, and retention and
incentive
plans for the Company’s Executives and employees.
In particular, the Committee reviews the performance
criteria, notably based on a multi‑criteria ESG indicator,
for the annual variable compensation of the Chief
Executive officer and of the Executive Committee
members, as well as the acquisition of performance
shares awarded to them.
long‑term
— the members of
the Board of Directors’
three
committees, i.e. all independent directors, now meet
in two annual sessions: one dedicated to sustainability
issues, and the other to risk prevention and management
within the Company, including ESG risks (see section
“Meetings of independent directors (annual executive
sessions)” in paragraph 5.1.1.2 “Practices of the Board of
Directors”);
— the annual
variable
compensation of Executive
officers and Executive Committee members includes
a multi‑criteria ESG
indicator. The vesting of the
performance shares allocated in 2024 to the Chief
Executive officer (as well as to Dassault Systèmes’
beneficiary employees) will also partly depend on this
ESG indicator;
— within the Executive Committee, Florence Verzelen,
Executive Vice‑President,
Industry, Marketing &
Sustainability, is responsible for Dassault Systèmes’
its aspects of product
sustainability roadmap,
in
development strategy
to help customers become
more sustainable (handprint), and the management of
Dassault Systèmes’ environmental footprint;
— the Sustainability Steering Committee brings together
at least three times a year the executive managers of
the Company’s key functions to discuss action plans
and progress in support of the sustainable development
strategy. The Committee is co‑chaired by the Executive
Vice‑President, Industry, Marketing & Sustainability, and
the General Secretary of Dassault Systèmes;
Social, Societal and Environmental Responsibility
Sustainability Governance
2
— the Chief Sustainability Officer
is the Committee’s
secretary. She oversees Dassault Systèmes’ sustainable
development strategy. Her organization’s main missions
are:
– supporting strategic customers in addressing their
sustainability
and
deploying their portfolio of solutions, particularly in
line with the sustainability levers set out in the EU
Taxonomy,
and developing
challenges,
– orchestration of environmental reporting, definition
of the carbon neutrality pathway and management of
non‑financial ratings,
2
– interaction with all institutional, academic, analyst
and integrator partners on sustainable development
matters.
This involves animating:
— a network of over 40 Sustainability Leads who
implements the Company’s sustainability strategy in the
GEOs, brands and industries in which it operates;
— the Zero Carbon Team, which brings together the seven
key functions committed to achieving science‑based
carbon emissions reduction targets.
is
reporting process and non‑financial
In 2021, the Company has created, within the Finance
department, a Sustainable Finance department, including
the Procurement department as well as the non‑financial
reporting team. This Sustainable Finance & Procurement
in charge of ensuring the reliability of
department
the
information,
calculating indicators relating to the EU Taxonomy, assessing
financial risk according to climate scenarios and leading
its supplier chain so that the latter also commit to an
ambitious decarbonization trajectory. In 2023, this team
has been reinforced to prepare Dassault Systèmes for the
implementation of the CSRD.
As a result, in 2023 the Group has launched a project
to improve its sustainability reporting led jointly by the
Sustainable Development and Sustainable Finance teams in
order to:
— carry out a double materiality assessment;
— identify additional indicators to be published for fiscal
year 2024;
— define the principles, processes and information systems
for a reporting system that meets the requirements of
reliability, traceability and internal control, satisfying
the recommendations of the regulator, and enabling
improved monitoring of the Company’s sustainability
performance.
This project will be continued in 2024 and 2025.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
Social, Societal and Environmental Responsibility
Sustainability Governance
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Social, Societal and Environmental Responsibility
Social, Societal and Environmental Risks
2
2.2
Social, Societal and Environmental Risks
its
In 2022 and 2023, Dassault Systèmes revisited
Company‑wide
risk analysis approach, with the aim
of strengthening the formalization of its processes for
identifying, assessing and managing potential
impacts,
as well as monitoring remediation plans. A specialized
consultancy was called in to benchmark the Company’s risk
universe.
Formalized in this way, this Dassault Systèmes risk universe
is divided into four categories: human capital risks, legal
and non‑compliance risks, financial and strategic risks, and
operational risks. Each of these risks is analyzed in detail
to determine a level of risk, assessed according to three
dimensions: impact on strategic positioning, impact on
image and reputation, and financial impact, as presented in
paragraph 5.2 “Enterprise Risk Management and Internal
Control Procedures”).
Within the risk universe, 17 are linked to ESG issues that
could impact the Company’s long‑term resilience. These
17 risks incorporate the 26 generic sustainability issues
defined by the Sustainability Accounting Standards Board
(SASB). Some of them have been grouped together in
order to take better account of their materiality within
Dassault Systèmes’ risks as a whole.
The sustainability issues considered critical for the software
and IT services sector according to the SASB framework
have been prioritized and reassessed using the assessment
methodology updated in 2022, and set against the work
carried out in preparation for the adoption of the CSRD,
notably through the double materiality assessment and the
issues perceived by the Company’s stakeholders.
To this end, key members of the Dassault Systèmes
internal experts and
Executive Committee, as well as
operational managers for each category of risk, were
interviewed to assess their potential impact, and identify
preventive measures and best practices implemented.
A new governance for the risk management function was
also put in place in 2022, headed by the Corporate Secretary
to whom the Internal Audit department if now attached. Its
members are:
— a Risk Management Steering Committee, comprising
the Legal department, the Sustainable Finance &
Procurement department, the Internal Audit department,
and the Human Resources department, under the
supervision of the General Secretariat. Representatives
from these or other departments may also participate,
in particular the Company’s Cybersecurity, Employee
Health and Safety, Information Systems and Compliance
managers;
— specific committees
into the Company’s
integrated
governance, which also ensure the relevance of these
assessments and the controls put in place:
– the
Cybersecurity
on
cybersecurity risks relating to IT infrastructures, R&D
and the cloud,
Committee
Steering
– the Ethics Committee on corruption, compliance and
other business ethics risks,
2
– the Audit Committee in its task of reviewing the
processes for preparing non‑financial performance
reporting,
– meetings of
the
independent directors, who
periodically review Dassault Systèmes’ risk universe,
the assessment of these risks, particularly those
involving sustainable development issues, and the
associated governance.
Based on the results of this assessment, the social, societal
and environmental risks likely to have a significant impact
can be grouped into the categories below. The main risks the
Company is facing are presented in paragraph 1.9.1 “Risks
Related to the Business”, in order of significance, taking into
account the mitigation measures in place the probability of
occurrence:
— Human capital, in particular Dassault Systèmes’ ability to
promote diversity and equal treatment, to attract talent
on the global job market, to support the development
of knowledge and know‑how, to develop employees’
commitment, to safeguard their health and safety and to
retain them (see paragraph 2.3 “Social Responsibility”);
— Social capital, including personal data protection (see
paragraph 2.4.2 “Protecting Personal Data”);
— Environment, notably the management and reduction
of the Company’s greenhouse gas emissions, the
management of its energy consumption, compliance
with regulations, the treatment and recycling of its
electrical and electronic waste equipment, and its actions
in favor of the circular economy (see paragraph 2.5
“Environmental Responsibility”);
— business continuity risks, in particular those relating to
the Company’s cloud operations, access to key resources
and equipment within a reasonable timeframe and at
reasonable prices, and the reliability of its software
solutions;
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES The matters identified by the Company are consistent with
those identified to date as part of the double materiality
assessment required by the CSRD and expressed or discussed
with key stakeholders. Dassault Systèmes has identified
thirteen key stakeholders: authorities, investors, customers,
business partners, employees, users, prospects, professional
unions and networks, competitors, influencers, academias,
associations and suppliers.
In 2023, the Sustainable Development department launched
two internal surveys to complete the double materiality
assessment launched as part of the CSRD, and to qualify its
stakeholders’ expectations more precisely. The first survey
estimated the level of influence of each of the thirteen
stakeholder typologies on Dassault Systèmes’ business in
terms of its sustainability challenges.
The second survey asked internal profiles who interact
regularly with a particular type of stakeholder to estimate
level of expertise for each of the criteria
both their
considered (European Sustainability Reporting Standards
ESRS and SASB), as well as their level of expectations of
Dassault Systèmes for these same criteria (for example,
the Procurement Director was asked to estimate the level
of expectation and expertise of suppliers). The combined
results of these surveys were used to map the Company’s
stakeholders according to their
influence and
expectations of Dassault Systèmes. This map was then
divided into quadrants organizing the stakeholders according
to the level of priority defined by the Company: “Monitor”,
“Keep satisfied”, “Manage closely” and “Keep informed”.
level of
2
Social, Societal and Environmental Responsibility
Social, Societal and Environmental Risks
— Leadership
and Governance,
including Dassault
Systèmes’ ability to:
– promote strong business ethics. The effects of
the Company’s activities with respect to Human
Rights are assessed as part of the Vigilance Plan.
The effectiveness of the company’s prevention of
corruption is the subject of a specific, regularly updated
cartography. Like the prevention of tax evasion, they
do not constitute principal risks and are dealt with
within the framework of the Company’s Code of
Business Conduct (see paragraph 2.6 “Business Ethics
and Vigilance Plan”),
– support disruptive innovation product and service
projects led by startups, communities of innovators
and
(see paragraph 2.4.3
“Innovate for a Sustainable Future”),
laboratories
research
– support the impact of digital technology on people and
society, in collaboration with players from civil society,
business and science.
These categories structure Dassault Systèmes’ non‑financial
performance report and are documented
in terms of
associated policies and procedures, future due diligence and
the definition of key performance indicators.
Given the nature of the Company’s activities, issues relating
to water management, food waste, the fight against food
insecurity, respect for animal well‑being, responsible, fair
and sustainable food, and collective bargaining and their
impact on the Company’s economic performance, do not
constitute risks likely to have a significant impact and do not
require development in this chapter. However, for the sake of
transparency, information relating to independent employee
representation and collective bargaining agreements
in
Europe is included in this chapter, as is water consumption
without comparison with 2022.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Social, Societal and Environmental Responsibility
Social Responsibility
2
2.3
Social Responsibility
Dassault Systèmes is organized around main functions,
including R&D representing 41% of the overall workforce,
within three major geographic zones and 43 countries of
operation. On December 31, 2023, the total workforce,
covering subsidiaries in which Dassault Systèmes has more
than a 50% shareholding, was 23,811 employees, up 5.7%
compared to December 31, 2022.
In 2023, 3,419 employees joined the Company, 98% of
these through recruitment and 2% through newly acquired
companies.
In line with the Company’s aim to be acknowledged as a
responsible employer, Dassault Systèmes promotes the
long‑term employment of its employees. As a result, 99%
of employees are on permanent contracts and are recruited
locally, thereby contributing to the employability and
economic development in each country where the Company
operates. Dassault Systèmes is committed to maintaining
employment, as previously done
in 2020 during the
COVID‑19 pandemic with no outside governmental support
and in 2009 during the global economic downturn. In 2023,
Dassault Systèmes has not implemented any collective
measures to reduce headcount, such as job‑saving plans.
The social responsibility approach
is entrusted to the
Human Resources team. The definition and implementation
of related policies rely on a global network of employees,
made up of experts and operational staff, at both global and
local levels. Projects and indicators are managed through
dashboards
in the 3DEXPERIENCE platform.
Combining people analytics and data science, including a
predictive component, the operational monitoring system
supports decision making process and implementation of
relevant action plans.
integrated
2
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
Social, Societal and Environmental Responsibility
Social Responsibility
Main Indicators
Headcount
Europe
Americas
Asia
R&D
Sales, Marketing and Services
Company’s General Administration
Headcount growth
Permanent employees
New joiners
Recruitment
Acquisition
Countries of operation
2.3.1
Attracting Talented Individuals
2023
2022
2021
23,811
39%
28%
33%
41%
46%
13%
5.7%
99.0%
3,419
98.0%
2.0%
43
22,523
38%
29%
33%
41%
46%
13%
9.9%
99.0%
5,022
97.2%
2.8%
43
20,496
39%
29%
32%
41%
46%
13%
3.6%
99.0%
3,629
99.4%
0.6%
42
thus
reinforcing
in particular on
Dassault Systèmes’ growth relies
its
ability to attract talented individuals motivated by the
Company’s ambition,
the expertise
and complementarity of its employees. Competition in
the global job market, particularly for digital skills, has
intensified. Dassault Systèmes’ value proposition is based
on its purpose, which contributes to sustainability in many
fields, and on its passion for breakthrough innovations, in an
international and multicultural context. The Company strives
to be acknowledged as a leading employer that attracts
and engages talents, contributing to their development and
ensuring sustainable employability in all its forms. To achieve
these objectives, candidates sourcing and
identification
requires coherent and diversified solutions.
2.3.1.1
Referral Program
Referrals allow to promote Dassault Systèmes through its
employees’ network and
leverage career opportunities
worldwide. Any employee can recommend a candidate via
a dedicated application, which is part of the 3DEXPERIENCE
platform.
2.3.1.2
Academic Relations
To enable future talents to validate their academic career
with work experience in an innovative environment, over
1,600 internship and apprenticeship opportunities were
posted worldwide and promoted to a network of more than
450 education institutions and universities. The aim is to
offer students career opportunities by proposing them to
join Dassault Systèmes after graduation, including through
professional missions abroad as part of an International
Corporate Volunteer program. Dassault Systèmes is involved
68
in a number of initiatives that contribute to students’
academic training program, such as:
— the creation of a specialized master’s degree in 3D
modeling of
in
partnership with the École Supérieure d’Ingénieurs
Léonard‑De‑Vinci (ESILV);
industrial systems and processes,
— practical courses in specific skills, with 3DS OUTSCALE
employees working with 12 schools, enabling students
to specialize in cloud computing security;
— a partnership with the Formula Student team at the École
Polytechnique Fédérale de Lausanne, for the design and
production of efficient and reliable electric vehicles. This
initiative enables engineering students to acquire skills
in complex processes and design of highly technical
prototypes.
2.3.1.3
Internal Hiring
The Company’s attractiveness is also based on its ability
to support employees’ professional development for them
to achieve personal fulfillment. Internal mobility enables
increase their expertise and know‑how
employees to
industry
in Dassault Systèmes’ solutions and
segments served by the Company. To this end, the My
Journey application enables each employee to define a
career development project, benefiting in particular from
information and data on the Company’s professions, and
to simulate potential career paths by selecting skills. All
employees can also connect to the My Job Opportunities
application, which provides them with access to available
jobs offers in real time, apply online and track the progress of
their application.
in the
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Social, Societal and Environmental Responsibility
Social Responsibility
2
2.3.1.4
Employer Brand
Dassault Systèmes communicates through various channels,
including social networks, about the Company’s purpose,
careers, job offers and events organized in collaboration with
educational institutions. The website provides information
on the Company’s culture and values, on sustainability
commitments, on benefits, on
inclusion and diversity
initiatives, as well as career development programs. In
2023, a candidate relationship management digital solution
was deployed. Combined with a new approach to strategic
workforce and skills planning, this will improve the creation
of future talent pools and the ability to recruit from them.
With the candidate and student experience central to its
recruitment activities, Dassault Systèmes:
— is accredited with the “Choose My Company –
HappyIndex Trainees” label in France and the “Choose
My Company – HappyIndex Candidates” label in various
countries around the world;
— is listed in Universum France “The Most Attractive
Employer” rankings for students and professionals.
2
2.3.1.5
Main Indicators
Job offers filled
Job offers filled under permanent contracts
Job offers filled by referral
Conversion of interns and apprentices (1)
Job offers filled by internal hires (2)
2023
2022
2021
3,594
96.4%
15.7%
28.7%
28.8%
4,722
97.4%
18.7%
29.6%
26%
3,875
96.4%
17.5%
28.6%
29.8%
(1) Percentage of conversion, under permanent or fixed‑term contracts, of the total number of interns and apprentices, whether they continue their educational training or
are graduated.
(2) Percentage of job offers requiring at least three years’ professional experience filled with internal candidates.
2.3.2
Developing Knowledge and Know‑how
its
its ability to
very beginning, Dassault Systèmes has
Since
demonstrated
in the field of
innovate
3DEXPERIENCE universes, enabling its clients to accelerate
their transformation and imagine sustainability enabling
solutions. This individual and collective capacity is embodied
in one of the Company’s values, “Passion to Learn”.
2.3.2.1
Learning Experiences
Dassault Systèmes offers all employees a portfolio of
learning experiences and knowledge acquisition through
training and certification in four areas:
— knowledge of the Company’s purpose, history, culture
and values, as well as the adoption of the 3DEXPERIENCE
platform;
— cross‑functional skills such as communication, collaboration,
leadership and sustainable development;
— skills linked to professional expertise of each employee;
— knowledge in Dassault Systèmes’ solutions.
Through the 3DEXPERIENCE University application, every
employee has access to 8,700 training contents linked
to specific skills, as well as to a portfolio of certifications
comprising 96 role‑related programs, 124 brand‑related
programs and 114 industry segments‑related programs. In
2023, 60 new programs, almost 28,000 certifications and
over 536,000 hours of training were delivered.
To strengthen career development approach and the
Company’s agility, skills from a standardized framework,
covering knowledge, know‑how and soft skills, are
integrated into the different roles, the model for which
is reviewed each year. They enable employees to assess
themselves
in consultation with their managers, and
to reinforce certification programs aimed at on‑the‑job
specialization, expertise and social learning.
Dassault Systèmes promotes and encourages knowledge
capitalization, knowledge sharing and the transmission of
skills between peers through the creation and animation of
communities on the 3DEXPERIENCE platform and mentoring
programs implemented in several countries. Internal mobility
and participation in the Company’s projects also accelerate
the development of employees’ skills.
In July 2023, Passion to Learn Month, an event dedicated to
training and skills development, was organized. This initiative
made available to all employees a comprehensive program of
training, eLearning, forums, conferences and escape games
around topics such as diversity and inclusion, sustainable
development and learning organization. The event attracted
over 6,000 registrations and more than 3,100 participants.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
2
Social, Societal and Environmental Responsibility
Social Responsibility
Almost 4,500 people, both women and men, have
managerial responsibilities within the Company, supporting
human capital in their career development and playing a
key role in employee commitment and motivation. The
training portfolio dedicated to managers aim to develop
their leadership and communication skills, enabling them
to bring their teams together around shared goals and
Company’s values. The
related certification program
enables them to master a core of managerial skills and
knowledge in performance management, recognition and
individual and collective development. A booklet outlining
the main characteristics of management is provided. This
Manager Book covers four major themes: knowledge of
Dassault Systèmes, managerial culture, management
methods and training and learning programs.
2.3.2.2
Ethics, Compliance and Cybersecurity
Trainings
In line with Dassault Systèmes’ commitment to business
ethics and corporate responsibility (see paragraph 2.6
“Business Ethics and Vigilance Plan”), training on ethics and
compliance is mandatory for all employees and recurrent on
an annual basis to ensure that they master the fundamentals
of Code of Business Conduct, personal data protection and
anti‑corruption. Code of Business Conduct training includes
a presentation of the Whistleblowing procedure and a
commitment by each employee to respect the rules laid
down in this Code.
In a context where the cyber threat is increasingly high
and challenging for all parties within the Company,
Dassault Systèmes runs a multi‑year cybersecurity‑related
training program tailored to each role since 2021. Mandatory
training for all employees enables them to recognize and
avoid the pitfalls associated with the digitalization of
communications, and must be refreshed every two years.
Trainings are offered for developers on security by design,
covering code, architecture and secured software life cycle;
all members of the Information Systems department are
trained on networks and systems security fundamentals.
Each cybersecurity expert can obtain
internationally
recognized certifications to enhance and increase their
knowledge and know‑how. In addition, an objective relating
to compliance with Company policies, mandatory trainings
and the enforcement of cybersecurity rules is integrated into
the annual performance review process.
2.3.2.3
Main Indicators
Employees who received training
Average number of training hours (1)
Employees certified to Company’s knowledge and values
People managers certified
Employees trained in cybersecurity
Employees trained on ethics and compliance (2)
2023
2022
2021
98.7%
23.1
92.0%
82.0%
99.5%
98.9%
98.7%
27.9
90.5%
80.8%
98.6%
99.2%
90.9%
28.9
83.1%
81.8%
‑
98.6%
(1) For employees who received training.
(2) Average percentage of permanent employees who completed mandatory trainings on Code of Business Conduct, Personal Data Protection and Anti‑Corruption.
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Social Responsibility
2
2.3.3
Preserving Health, Safety and Well‑Being in the Workplace
As set out in the Code of Business Conduct and the Corporate
Social Responsibility Principles, Dassault Systèmes
is
committed to providing all employees with working
conditions that ensure their health and safety, in compliance
with applicable laws and regulations.
2.3.3.1
Safety of Individuals and Property
Four major policies lay down the scope of application,
measures and procedures, as well as the responsibilities of
all contributors. These policies cover employees in the course
of their business activities, customers, partners and service
providers during their presence on Company’s sites or at
events organized on behalf of Dassault Systèmes.
Safety standards are defined and their implementation is
evaluated through a questionnaire completed in collaboration
with sites’ managers. These assessments allow, if necessary,
to draw up action plans. Standards are supplemented by site
maintenance procedures designed to ensure compliance with
applicable security norms. The safety policy and instructions
applicable to the organization of internal or external events
are shared with all employees, and define the involved
stakeholders’ roles and responsibilities. The business travel
policy provides required recommendations upon destination,
as well as a list of high‑risk countries requiring prior
authorization. Employees also benefit from an international
medical and security assistance service before, during and on
their return from business trips, as appropriate. In addition,
a crisis management protocol sets out the procedures for
emergency response, organization and communication
overseen by a specific committee. This framework
is
enhanced by the use, if required, of a mass communication
tool enabling the Company to provide employees with
emergency information.
2.3.3.2
Healthcare and Disease in the Workplace
In 2023, previously undertaken actions to manage COVID‑19
pandemic ware continued, in particular through preventive
measures relating to employees’ health, working and living
conditions. General on‑site employee health and safety
recommendations have been regularly updated as per the
directive of each country where the Company operates.
In October 2021, Dassault Systèmes launched an initiative
aimed at addressing the issues surrounding cancer and
chronic illnesses in the workplace. On 7 January 2022, the
Company signed the Cancer@Work charter in France, with
the objective of changing the knowledge and representations
associated with these pathologies, and improving the way in
which their impact is taken into account in the workplace.
Formalized as part of a socially innovative program named
We Care for Your Health, this initiative, led by more than
70 volunteer employees, is based on four pillars:
— support for patients and caregivers, in particular with
the provision of two counselling and support platforms
for all, a patient’s guide sharing advices and informations
from the announcement of an illness to the challenges
of returning to work and maintaining employment,
managers’ training and guide enabling them to provide
the best possible support to the person or persons facing
the disease;
— prevention, with the organization of conferences all
along the year on topics such as cancer, cardiovascular
disease and acute respiratory infections, as well as
vaccination campaigns and an online training module to
enable employees to identify emergency situations and
react with life‑saving gestures;
— the promotion of physical activities associated with
prevention campaigns, notably with participation in the
Course Odyssea as part of the Pink October campaign,
the Course du Coeur to raise awareness of organ, bone
marrow and tissue donation, the Course des Lumières in
aid of the Institut Curie and Les Bacchantes race as part
of the Movember initiative to combat male pathologies
and cancers;
— the contribution of Dassault Systèmes’ Life Sciences &
Healthcare solutions shared through a series of videos for
employees on various themes, such as the development
and discovery of drug candidates as well as improving
the patients’ journey, notably in oncology and preparing
for the fight against pandemics, by using virtual twin
experience.
On November 28, 2023, Dassault Systèmes was awarded the
Cancer@Work level 3 label, aligned with the Global Reporting
Initiative’s social responsibility standards, for actions carried
out in France. In March 2023, Dassault Systèmes joined the
Working With Cancer initiative aimed at creating a supportive
work environment for employees affected by cancer, and
a culture to support their recovery and resumption of their
professional careers.
2.3.3.3
Work‑Life Balance
In accordance with the Corporate Social Responsibility
Principles, Dassault Systèmes is committed to:
— working hours, taking into account employees’ workload
when
setting objectives and conducting annual
performance review, confirmed in the related interview
reporting document;
2
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
Social, Societal and Environmental Responsibility
Social Responsibility
— accommodating employees’ requests for part‑time work
and statutory leave for personal reasons, family events
or family support, in compliance with applicable laws and
regulations and when operational activities allow;
“Developing Knowledge and Know‑how”.). This approach is
complemented by employees’ support measures to preserve
balance and quality of life, particularly in terms of connection
ethics and health monitoring.
— parenthood, a key driver for work‑life balance and
fairness. In 2023, more than 390 employees benefited
from maternity leave for an average duration of nearly
62 days, and more than 540 employees benefited from
paternity leave or equivalent for an average duration of
nearly 18 days (see paragraph 2.3.4 “Rewarding and
Retaining Talents”);
— support for the commitment of employees in France to
the national military reserve, enabling them to benefit
from 12 days’ paid leave, 7 days of which are paid for by
the Company.
In addition, it is essential to reach a balance between
on‑site and remote work that ensures harmony between
professional and personal life, maintains collaboration and
a sense of belonging to the Company. Since 2021, Dassault
Systèmes has implemented a global flexible work policy
enabling employees to work remotely one to two days a
week. It covers more than 65 countries, representing more
than 94% of employees, and contributes to reducing time
and environmental impact of employees’ commute (see
paragraphs 2.5.5.4.4 “Optimizing Mobility” and 2.5.2.4.3
“Increase Energy Efficiency of Buildings”).
Remote connection is ensured by secure and authorized
connectivity
have
for
acknowledged the
IT charter, and completed ethics,
compliance and security trainings (see paragraph 2.3.2
employees who
solutions
2.3.3.4
Satisfaction Work Environment
Each of the Company’s sites reflects its spirit and identity,
and contributes to the well‑being of employees, potential
talents, customers and partners. The quality of the physical
environment
is thus core to the real estate strategy.
Dassault Systèmes is committed to providing sustainable (see
paragraphs 2.5.2 “Climate” and 2.5.5 “Circular Economy and
Resource Use”), comfortable and collaborative workspaces,
and to providing employees with on‑site services. The three
main sites – the 3DS Paris Campus in France, the 3DS Boston
Campus in the United States and the 3DS Pune Campus
in India – offer an extensive range of services, including
large‑scale catering facilities and sports facilities.
internal survey
Each year, an
(see paragraph 2.3.4
“Rewarding and Retaining Talents”) measures employees’
level of satisfaction with their working environment. In
2023, it stands at almost 76%. Actions to improve the
quality of workplaces are being continued:
— with the construction of a fifth building, in early 2024, on
the 3DS Paris Campus in France, and a new building, in
2025, on the 3DS Pune Campus in India;
— plans to refurbish or relocate around a dozen sites by
2024, notably in France, Korea and Japan.
2.3.3.5
Main Indicators
Absenteeism – Illness
Absenteeism – Occupational Accidents
Absenteeism – Maternity and Paternity Leave
Satisfaction Work Environment (2)
Permanent employees working part‑time
Permanent employees benefiting from a leave of absence (3)
(1) Corresponding to a lost‑time injury rate of 0.1 estimated on the basis of 200,000 hours worked.
(2) Satisfaction rate of the employee experience on the Company’s sites measured by an annual satisfaction survey.
(3)
Including end‑of‑career leave.
2023
2022
2021
2.2%
0.0% (1)
0.7%
75.6%
2.0%
1.5%
2.1%
0.01% (1)
0.6%
77.6%
2.0%
1.4%
2.2%
0.02%
0.7%
77.5%
2.3%
1.8%
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Social, Societal and Environmental Responsibility
Social Responsibility
2
2.3.4
Rewarding and Retaining Talents
Dassault Systèmes believes that its purpose gives meaning
to the professional lives of its employees. To ensure the
competitiveness of its employer offering, the Company is
committed to a continuous improvement approach based
on open communication, which is an integral part of its
culture, to imagine, inspire and create new experiences for
employees.
2.3.4.1
Compensation, Benefits and Employee
Shareholding Program
Dassault Systèmes’ commitments are to compensate
employees at or above the levels set by applicable laws
and regulations and to provide all legally required benefits,
as set out in the Company’s Corporate Principles of Social
Responsibility. As such, Dassault Systèmes’ value proposition
is based on a total reward approach aimed at ensuring that
each and every employee benefits from an attractive policy.
The annual compensation is made of a fixed salary and
a variable component, the rules of which depend on the
employee’s function and roles within the Company’s
reference framework. Salary ranges are analyzed each
year to ensure that they are in line with high‑tech market
and
is
practices. Compensation
differentiated according to the individual performance of
each employee. Upon global or local context, whether in
terms of the economy or competition, specific measures can
be defined and implemented.
reviewed
annually
regulations and practices,
In accordance with
Dassault Systèmes’ policy aims to offer social protection, in
particular:
local
— death, disability and
incapacity coverage over and
above the compulsory insurance plan, depending on the
country;
— maternity
leave with 100% salary continuance
in
24 countries, representing over 90% of the workforce,
in
and with salary continuance at a
19 countries;
lower rate
— paternity
leave or equivalent with 100% salary
continuance in 25 countries, representing over 60% of
the workforce, and with salary continuance at a lower
rate in 15 countries.
Employees can also receive various types of benefits,
including transport and childcare allowances, vouchers and
discounts. Since 1 January 2022, Dassault Systèmes has
been rolling out a global program aimed at ensuring the
consistency and long‑term competitiveness of practices in
the area of social protection excluding pensions. At the end
of 2023, this program covers 26 countries, representing 86%
of the workforce, and deployment will continue until the end
of 2024.
In order to offer as many of employees as possible the
opportunity to be involved in the Company’s project and
growth, a second employee shareholding program was
deployed in 2023 in 23 countries, representing almost 99%
of the workforce on the plan’s opening date. This operation
allowed employees to subscribe to a leveraged shareholding
scheme at a 15% discount and offering a capital guarantee in
euros.
All these measures ensure that each employee receives
sufficient compensation to achieve a decent standard of
living, as set out in the United Nations Universal Declaration
of Human Rights.
2.3.4.2
Key Talents Retention
Career development is an important trigger for talents’
engagement and retention. Internal mobility and knowledge
and know‑how acquisition policies enable employees to
adapt and develop their skills in line with the Company’s
activities and evolution (see paragraphs 2.3.1 “Attracting
Talented Individuals” and 2.3.2 “Developing Knowledge and
Know‑how”). The human capital development policy includes
a process for identifying key employees and developing
succession plans covering more than 200 positions with
high‑level responsibility. This process aims to identify for
each position up to three talented individuals with leadership
potential to become tomorrow’s leaders.
Two specialized programs, GLOW and Talent Journey, are
dedicated to developing Dassault Systèmes’ talents and
future managers pool. Structured over a period of 7 to
10 months, these programs foster the development of
strategic and leadership skills through group training and
case scenarios on transformation projects defined by the
Company. They offer participants the opportunity to present
their work to members of the Executive team.
long‑term
Key employees may be granted
incentives,
notably through grants of Dassault Systèmes performance
shares or share subscription options. This allocation is made
to each person depending on their individual performance
and level of responsibility (see paragraph 5.1.5 “Interests of
Executive Management and Employees in the Share Capital
of Dassault Systèmes SE”).
2.3.4.3
Achievements’ Pride and Recognition
Each employee has a mission and associated responsibilities
set for the year and linked to their role. Each employee
proposes and defines, together with his or her manager,
achievement and leadership objectives, during meetings
designed to ensure that they take ownership of the
objectives set, that they have the means and resources
necessary to achieve them, and that they understand their
individual contribution to the Company’s objectives.
2
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
Social, Societal and Environmental Responsibility
Social Responsibility
The voluntary commitment of employees to the activities
of La Fondation Dassault Systèmes and the 3DEXPERIENCE
Lab is taken into account through one or more dedicated
objectives. Objectives and results can be updated at any
time and mid‑year reviews are recommended. At the end
of the year, the assessment of results is a major component
of performance review process. As part of the collective
collaboration on the Company’s projects, each and every
employee can seek social feedback from other employees,
helping to confirm the strengths demonstrated and the areas
for development.
As innovation is an integral part of the Company’s DNA,
various
initiatives are deployed to foster pride and
recognition of achievements, as well as understanding of
corporate strategy. Since 2004, the most innovative projects
carried out by Dassault Systèmes teams around the world
have been rewarded each year, encouraging collaboration.
The projects submitted are selected by a vote of employees,
and by a jury made up of members of the Executive team.
The 2023 edition of the 3DS INNOVATION Forwards
registered over 370 candidate projects
representing
more than 2,900 employees, and rewarded 62 projects
representing more than 700 people. Actions contributing to
the sustainable development of the ecosystem are promoted
through the skills sponsorship policy of La Fondation
Dassault Systèmes (see paragraph 2.4.4 “Philanthropy:
Committing to Education and Research”). The Company also
supports participation in social and societal initiatives in the
countries where it operates, for the benefit of local non‑profit
organizations.
2.3.4.4
Freedom of Association and Collective
Bargaining
Dassault Systèmes is committed to respecting it’s employees
right to associate freely, form and join workers organizations
of their own choosing, and bargain collectively as permitted
by and in accordance with applicable laws and regulations.
In line with the freedom of association, Dassault Systèmes
has an independent employees’ representation:
— at the
local
level, with representatives elected by
employees, or union representatives;
— at the supranational level, through the Committee of
the European Company covering all countries within the
European Economic Area as well as the United Kingdom,
whose retention in the scope of this committee was
voted by the members. The Committee of the European
Company was thus able to discuss the Company’s
strategy, Human Resources policies, business approach
in Europe, sustainability policy and cybersecurity
measures with members of the Executive team;
— at Board of Directors’ level, through two directors
representing employees appointed in accordance with
Dassault Systèmes SE’s by‑laws (see paragraph 5.1.1
“Composition and Practices of the Board of Directors”).
In Europe, employees are covered by an
independent
employees’ representation in 18 countries, and employees
in 11 countries benefit from collective bargaining agreement.
These locally applicable agreements cover various subjects,
which vary from country to country, such as compensation
policy, measures
to promote professional equality,
compliance with working hours’ rules and the right to
disconnect.
Dassault Systèmes offers employee representatives various
means of communicating with employees. Depending on
the country, this may take the form of leaflets, which can
be shared in a secure online space, e‑mails, communities on
the 3DEXPERIENCE platform or organizing meetings with
employees. Premises can also be made available. On the
3DS Paris Campus in France, Dassault Systèmes SE’s Comité
Social et Économique (Social and Economic Committee)
benefits from over 1,100 square meters of rented space, and
trade union organizations are provided with offices to fulfill
their mission.
2.3.4.5
Employee Engagement
Since 2010, an internal satisfaction survey has been open
to all employees worldwide. It enables employees to share
their satisfaction on five dimensions covering the meaning of
their work, the quality of management, the competitiveness
of the working environment, the quality of collective life
and the pride in working at Dassault Systèmes. This survey
makes it possible to identify watch points for each team and
each country, leading to local plans presented to employees
and shared within the 3DS People community.
Since 2019, when leaving the Company, every employee
can participate in a survey which allows them to express
the reasons for their decision, share information on their
experience at Dassault Systèmes and on their future career
prospects, in order to identify new practices that meet
employees’ expectations.
implemented
Throughout the year, the risk of key employees leaving the
Company was assessed, and action plans were deployed to
retain them. These actions, both individual and collective,
including specific
in several ways,
were
development plans, internal mobility measures and changes
in responsibilities. The employee‑initiated turnover rate
stands at 6.1%, below the average and median rates reported
by market surveys for the technology and life sciences
sectors at the end of the first half of 2023.
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2.3.4.6
Main Indicators
Employees granted with Long‑Term Incentive (1)
Employees subscribing to shareholding program (2)
Employees covered by independent employees representation in Europe
Employees covered by collective bargaining agreement in Europe
Average seniority (in years)
Employee voluntary turnover
Employee total turnover
Employees pride and satisfaction (3)
(1) Excluding members of the Executive team.
(2) Percentage of eligible employees subscribing to the employee shareholding program.
(3) Percentage measured by an annual satisfaction survey.
2.3.5
Promoting Diversity and Inclusion
2023
2022
2021
12.0%
33.8%
98.1%
83.8%
8.2
6.1%
7.3%
80.9%
12.0%
‑
97.9%
80.4%
8.1
10.8%
12.0%
81.7%
11.3%
55.4%
97.3%
79.7%
8.3
10.8%
12.9%
79.8%
2
Diversity and the creation of inclusive teams are part
of Dassault Systèmes’ objectives to achieve harmony
around meaningful projects and the mutual enrichment of
knowledge, to encourage creativity and to foster a fulfilling
collective environment for employees from 142 countries of
origin.
The Company’s commitment to women employees program,
3DS WIN (Women INitiative), is steered by a committee
of eight members, four of whom are members of the
Executive team. The 3DS WIN community leads a network of
employees involved to encouraging, inspiring and sustaining
the development of women at Dassault Systèmes.
The Code of Business Conduct and Corporate Social
Responsibility Principles formally state Dassault Systèmes’
commitments in terms of mutual respect and diversity.
Recruitment, training, promotion, appointment and other
work‑related decisions are thus based on skills, qualifications
and performance of each employee as well as professional
motivations.
2.3.5.1
Gender Diversity
to
achieving
Systèmes’
commitment
a
Dassault
balanced representation of men and women is reflected
in the composition of
its management bodies. The
proportion of women directors on the Board of Directors,
excluding directors representing employees, is 50% (see
paragraph 5.1.1 “Composition and Practices of the Board of
Directors”). In accordance with the law of December 24, 2021
(loi du 24 décembre 2021) aimed at accelerating economic
and professional equality, Dassault Systèmes SE discloses
the following metrics relating to gender representation in its
management bodies:
— the proportion of women among the members of the
governing bodies is 38.5% and the proportion of men is
61.5%;
— the proportion of women among executives is 26.5% and
the proportion of men is 73.5%.
In the “Palmarès de la féminisation des instances dirigeantes
des entreprises du SBF120” (Ranking of women representation
in governance bodies of SBF120 listed companies), conducted
by the French Ministry in charge of gender equality, diversity
and equal opportunities, Dassault Systèmes reached a global
score of 83.3 points out of 100, progressing by 0.6 point.
The annual variable compensation of Executive officers and
Executive Committee members includes an ESG indicator
including, in particular, objectives related to the proportion
of women on the Board of Directors, in the Executive team
and among People managers.
The MyJourney application (see paragraph 2.3.1 “Attracting
Talented Individuals”) allows to identify employees’ career
development and mobility projects, particularly
those
documented by women,
including women aspiring to
become managers. Nearly 1,700 women employees make
up the female talent pool, who are offered the opportunity
to participate in external events and specific programs that
promote access to positions of responsibility. Thus, the
9‑month Rise Up! program contributes to the development
of inclusive leadership skills for future managers, to support
sustainable performance and innovation at Dassault Systèmes.
In 2023, 75% of participants were women. Particular
attention is also paid to women profiles as part of the process
of identifying key talents and drawing up succession plans
(see paragraph 2.3.4 “Rewarding and Retaining Talents”).
All along the year, Dassault Systèmes participated in a
number of events promoting gender diversity and inclusion,
creating opportunities for collaboration with companies and
women’s networks, including the Assises de la Parité and
the Women’s Forum Global Meeting. Actions are also taken
right from the recruitment stage, by integrating women
profiles, whether as candidates or employees involved in the
selection process for future talent. However, the ability to
recruit women in the engineering field remains a challenge
due to their under‑representation in educational streams and
careers in science, technology, engineering and mathematics
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
2
Social, Societal and Environmental Responsibility
Social Responsibility
(STEM). Dassault Systèmes
stakeholders including:
is committed
to various
2.3.5.3
Sexual Orientation and Gender Identity
Dassault Systèmes is committed to promoting a culture of
inclusion of all forms of diversity, wherein each and every
person can thrive regardless of their sexual orientation
or gender identity. Since 2017, the PRIDE (Professionals
Inspiring Dignity and Equality) committee in the United Sates
implements a range of actions including awareness‑raising,
communication and mentoring for LGBTQIA+ members and
their allies, actively working to recruit and retain talents. In
2020, a similar initiative named the Rainbow Network was
launched, spanning the United Kingdom, the Netherlands,
Belgium, Denmark, Norway, Finland, Sweden, Ireland and
Lithuania. In 2023, several events were organized, such as
conferences and lunches, in particular to mark Pride Month.
All of these countries have deployed the Diversity, Inclusion
and Belonging champion program, making it possible for
volunteer employees to get involved in drawing up action
plans for each country, defining the annual calendar of
events and actively taking part in organizing and leading
them.
2.3.5.4
Discrimination and Harassment
Dassault Systèmes strictly prohibits all forms of harassment
and discrimination in work relations, in particular at the time
of recruitment and during employment and and assesses
on a case‑by‑case basis the situations likely to fall within
its scope on the basis of specific facts and circumstances
according to their legal qualification. The Code of Business
Conduct provides definitions and examples, especially with
regard to sexual harassment and discrimination. An online
training course, developed in 2021, is available for employees
and managers and complements these preventive measures.
In 2023, 31 reports of inappropriate behavior, discrimination
or harassment were received, in particular through the
Whistleblowing procedure, and were examined by the Ethics
Committee. All substantiated cases led to disciplinary action
(see paragraph 2.6.1 “Promoting Strong Business Ethics”).
— Cercle InterElles organization in France, which promotes
gender diversity and professional equality in the scientific
and technological sectors;
— Femmes Ingénieures association in France to enable
members of the 3DS WIN network to benefit from
a program of actions designed to improve women
representation in engineering;
— PowerToFly, in the United States, a diversity recruitment
and retention platform that connects under‑represented
talents to roles in highly visible sectors;
— Inspiringirls, in Italy, a non‑governmental organization
that organizes events to encourage professional ambition
and self‑confidence in girls aged six to sixteen.
The Company has indicators for monitoring women and
men salary structures. In this context, particular attention is
paid to the positioning of the recruitment offer and during
the annual salary review in comparison with the market
median salary. In addition, Dassault Systèmes complies with
mandatory reporting requirements arising from local and
national regulations. In this respect, Dassault Systèmes SE
obtained an overall score of 96 points out of 100 in the
Gender Equality Index calculated in 2024 for the year 2023.
2.3.5.2
Disability
Initiatives to encourage the development of an inclusive
working environment also cover people with disabilities.
The Company’s French, German, English, Dutch, American,
Canadian, Japanese, South Korean and Australian subsidiaries
are subject to specific laws regarding the employment
of people with disabilities, and Dassault Systèmes
demonstrates its commitment. In France, the agreement
is the seventh collective
signed on
agreement signed by Dassault Systèmes SE to promote
the employment of worker with disabilities, and covers the
following areas in particular:
January 5, 2023
— recruitment, onboarding and
individualized support plans;
integration
through
— career management and maintaining employment;
— training and development for students and jobseekers
with disabilities, to enable them to acquire knowledge and
expertise in new digital jobs, to improve their professional
opportunities within Dassault Systèmes and among its
customers and partners;
— partnership with the French adapted and protected work
sector.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 2.3.5.5
Main indicators
Gender diversity
Women on Board of Directors (1)
Women in the Executive team
Women among People managers
Women in the Company
R&D
Sales, Marketing and Services
Company’s General Administration
Women in new joiners
Gender Equality Index (2)
Disability
Employment of people with disabilities (3)
Country of origin
Number of countries of origin
Social, Societal and Environmental Responsibility
Societal Responsibility
2
2023
2022
2021
50%
38.5%
24.5%
28.7%
22.6%
29.2%
46.7%
33.3%
96/100
50%
38.5%
22.6%
28.1%
22.3%
28.8%
43.8%
32.5%
95/100
50%
38.5%
21.2%
27.5%
22.1%
27.4%
44.4%
34.9%
94/100
3.1%
2.9%
2.9%
142
136
135
2
(1) Excluding Directors representing employees, not accounted in accordance with the law and the AFEP‑MEDEF Code.
(2) The Gender Equality Index (Index Égalité Femmes‑Hommes) reported covers Dassault Systèmes SE. It is calculated each year in respect of the previous year.
(3) The employment rate of people with disabilities reported covers Dassault Systèmes SE. It is calculated each year in respect of the previous year.
2.4
Societal Responsibility
As a scientific and technological Company, Dassault Systèmes
puts the key issues of cybersecurity and data protection at
the heart of its concerns, placing great importance on the
trust of its employees, customers and partners.
the 3DEXPERIENCE Lab, positioned as a strategic partner
for disruptive
innovations, Dassault Systèmes supports
startups in projects that transform society in a positive and
sustainable way.
linked to
its business,
Over and above this priority
Dassault Systèmes
is fully committed to a societal
responsibility approach, with the mission of helping all
players in its ecosystem to imagine a more sustainable world.
Through the 3DEXPERIENCE Edu organization, the Company
is developing the talents and workforce of tomorrow by
enabling students, professionals and individuals to harness
the power of its 3D solutions and virtual worlds. With
These two initiatives, whose main aim is to facilitate access
for students and young entrepreneurs to cutting‑edge
technologies, are complemented by philanthropic actions.
Backed by the mobilization of its employees and the
commitment of La Fondation, Dassault Systèmes supports
transformative projects
research
institutes and museums, which contribute to innovation in
the fields of education, research and heritage.
led by universities,
2.4.1
Secure Data and Systems
line with national and
In
international cybersecurity
regulations and standards, in particular with respect to their
evolutions, Dassault Systèmes continues to
implement
its action plan. The Company extends and strengthens its
approach to all its activities, including those of newly‑acquired
companies, and regularly updates its security and data
protection policies.
interest
The ever‑growing
in Software as a Service
(SaaS) solutions calls for increased attention to security
requirements and continuous
improvements. Dassault
Systèmes takes great care to ensure the security of its own
and its customers’ data, which in SaaS mode is hosted
and processed on environments under the responsibility
of Dassault Systèmes. The Company has placed security
at the heart of the development and deployment of its
3DEXPERIENCE platform, in order to guarantee several levels
of security control, with a particular focus on “Security in
Depth”. At Dassault Systèmes, this concept is based on the
conjunction of several independent security mechanisms to
deal with a single risk. As such, a malicious action that would
have caused the failure of one of these mechanisms will not
be a threat, since it will be blocked by another mechanism.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
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Societal Responsibility
2.4.1.1
Policies
A global Dassault Systèmes Cybersecurity Policy
is
available to all Company employees and is constantly being
improved. It is aligned with industry standards such as ISO
norms, US National Institute of Standards and Technology
(NIST) guidelines, international risk management methods
(NIST RMF and ANSSI EBIOS) and the MITRE ATT&CK
Enterprise Framework. Its objective is to specify, define and
establish the information security requirements used by
Dassault Systèmes to secure its systems and information.
The implementation of these policies and standards enables
Dassault Systèmes to prevent and/or limit the impact of
security incidents on its business, and thus guarantee the
continuity of its operations.
Dassault Systèmes faces increasing security threats from a
wide range of sources. Its systems and networks can become
the target of a series of serious and protean threats, such as
computer‑based fraud, espionage, vandalism, cybercrime
and social engineering activities. The Company believes that
these cybersecurity threats to data, including personal data,
will become increasingly widespread, complex, elaborate
and sophisticated. As a result, the security requirements and
solutions the Company deploys to address these threats will
continue to evolve in ways that minimize the impact and
risk to Dassault Systèmes, its customers and users. In the
interests of transparency, the Company has also set up a
trust center to provide access to relevant information for all
its customers and partners, notably concerning the security
of its 3DEXPERIENCE and MEDIDATA cloud offerings.
2.4.1.2
Diligences
Cybersecurity at Dassault Systèmes is a Company‑wide
effort, overseen by
the Executive Committee. A
Cybersecurity Committee has been set up. Comprising
cybersecurity officers reporting to the members of the
Executive Committee in charge of IT infrastructure and
R&D, the Cybersecurity Committee supervises the security
of operations for all the Company’s organizations, including
IT infrastructure, 3DEXPERIENCE cloud infrastructure and
SaaS Life Sciences services. It also assesses emerging cyber
risks, as well as the effectiveness of the control tools and
processes implemented by Dassault Systèmes.
2.4.1.3
Incident Processing Times
Dassault Systèmes has become a member of the InterCERT
(Computer
France association, the first French CERT
Emergency Response Team) community, whose aim
is
to enable the exchange of experience and the sharing of
information in order to detect and respond to security
incidents.
In 2023, cybersecurity incidents were handled according to
the Dassault Systèmes Incident Response Plan.
As part of its trust center (https://www.3ds.com/trust/
3dexperience‑trust‑center), Dassault Systèmes has also
published a description of the Computer Security Incident
Response Teams (CSIRT) in accordance with the RFC 2350
standard, as well as information on vulnerability testing and
the possibility of reporting such vulnerabilities to Dassault
Systèmes. In addition, the Company publishes security
advisories based on published vulnerabilities in accordance
with CNA (CVE Numbering Authority) policies and guidelines.
2.4.1.4
Training and Awareness
Training
is a key element for all Dassault Systèmes
employees. At December 31, 2023, the new Cybersecurity
training course, revised in 2022 had been taken by 99.5%
of the base workforce, compared with 98.6% of this
workforce at December 31, 2022. In 2023, in addition
to this compulsory training enabling everyone to acquire
the necessary knowledge, the Company continued
its
specific training initiatives tailored to different roles (see
paragraph 2.3.2 “Developing Knowledge and Know‑how”).
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2.4.1.5
Certifications
The table below lists all certifications obtained by Dassault Systèmes in terms of data and systems security (as described in
this paragraph 2.4.1 “Securing Data and Systems”) and data protection (see paragraph 2.4.2 “Protecting Personal Data”).
Domain
Perimeter
3DEXPERIENCE SaaS
Design, development, delivery, cloud operations and
support for the 3DEXPERIENCE platform SaaS.
BIOVIA ScienceCloud
CENTRIC SOFTWARE
Data privacy management when Dassault Systèmes
acts as: (1) Controller for handling of personal data
provided in the context of 3DEXPERIENCE platform
SaaS, (2) Processor for personal data under the control
of a customer.
Information Security Management System (ISMS) for
the BIOVIA ScienceCloud offering, which includes the
security and business processes required to support
and manage the ScienceCloud platform.
Privacy Information Management Systems (PIMS)
addressing Dassault Systèmes’ role as a processor of
personal data
Principles of trust in terms of security, availability
and confidentiality on the Information Security
Management System (ISMS) of the BIOVIA
ScienceCloud offering.
Centric C8 offerings, Centric Visual Innovation Platform
(VIP), Centric Planning, services and business activities
that include in‑house IT activities, cloud hosting, HR
practices, legal services and information security
management system.
Type of Certification/Report
ISO 27001:2017
(Information Security Management
System)
ISO 27701:2019
(Personal data protection
management system)
ISO 27001:2017
(Information Security Management
System)
ISO 27701:2019
(Personal data protection
management system)
SOC 2 Type 1
ISO 27001:2013
(Information Security Management
System)
ISO 27017:2015
(Information security management
system in the cloud)
ISO 27018:2019
(Information security management
for personal data protection in the
public cloud)
Trusted principles of security, availability and
confidentiality for all PLM environments and SaaS
services.
SOC 2 Type 2
SOC 3 Type 2
2
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Domain
MEDIDATA
Perimeter
Information Security Management System (ISMS) of
the Medidata Clinical Cloud (MCC), including relevant
business processes that develop, support, and manage
the MCC
Information Security Management System (ISMS) of
the Medidata Clinical Cloud (MCC), including relevant
business processes that develop, support, and
manage the MCC; including the Privacy Information
Management System (PIMS) addressing Medidata’s
role as a processor of personal data
Payment solutions
Security and privacy trust principles over all Medidata
environments, including physical and software‑based
IT hosting operations, such as system monitoring and
disaster recovery, as well as data integrity.
An information security management system (ISMS)
relating to the operational processes (infrastructure
and delivery) of managed hosted services, augmented
with software development and software maintenance
servicing the operational processes
DELMIA Quintiq Hosting
Services
Type of Certification/Report
ISO 27001:2013
(Information Security Management
System)
ISO 27017:2015
(Information security management
system in the cloud)
ISO 27018:2019
(Information security management
for personal data protection in the
public cloud)
ISO 27701:2019
(Personal data protection
management system)
SOC.‑1 Type 2
SOC‑2+ Type 2
ISO 27001:2017
(Information Security Management
System)
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Domain
3DS OUTSCALE
Social, Societal and Environmental Responsibility
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Perimeter
Software development, sales, marketing and
communication activities, related to infrastructure
hosting and managed services, including hosting of
health data and of its SecNumCloud qualified service.
Managed services (IaaS and SaaS) are provided:
— all over the world in third‑party environments
managed by customers; or
— all over the world in self‑managed environments.
Software development, sales, marketing and
communication activities in relation to infrastructure
hosting activities and managed services, including the
hosting of health data and the SecNumCloud qualified
service.
The provision and maintenance service of
(i) physical sites hosting information system
material infrastructure used to process health data
(ii) information system material infrastructure used to
process health data, (iii) information system application
hosting platform and (iv) information system virtual
infrastructure used for processing health data.
“Cloud On demand”, IaaS service
Type of Certification/Report
ISO 27001:2017
(Information Security Management
System)
2
ISO 27017:2015
(Information security management
system in the cloud)
ISO 27018:2019
(Information security management
for personal data protection in the
public cloud)
Health Data Hosting certification
issued by ASIP Santé
SecNumCloud qualification from
the French Information Systems
Security Agency (ANSSI).
2.4.2
Protecting Personal Data
The approach adopted for cybersecurity also applies to
personal data protection. Dassault Systèmes is continuing to
implement its action plan and is continually strengthening its
approach with regard to all its activities and newly‑acquired
companies, including in the healthcare field, and is regularly
updating its procedures to ensure personal data protection.
Indeed, Dassault Systèmes has always considered data
protection to be a major topic for its customers and partners,
and is aware of the responsibility involved in personal data
processing. Since the introduction of the European Union’s
General Data Protection Regulation (GDPR) and other laws
in this area, the Company has constantly reaffirmed its
commitment to data protection by enhancing its solutions
with new capabilities enabling its customers and partners to
manage their compliance programs.
Dassault Systèmes places great importance on the trust of
its customers, users, employees and its global ecosystem.
Accordingly, all personal data collected, used, disclosed
and transferred is managed in accordance with the laws,
regulations and practices of the countries in which Dassault
Systèmes operates. In particular, when transferring personal
data to subcontractors, Dassault Systèmes ensures that
the latter comply with the regulations applicable under
the Sustainable Charter with Suppliers (see paragraphs
2.6.1.1 “Ethics and Compliance Rules Applicable at Dassault
Systèmes” and 2.6.3 “Committing to Ensure Respect for
Human Rights and Fundamental Freedoms”). In 2023,
Dassault Systèmes strengthened its control and awareness
measures.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES The Company’s solutions are designed according to the
concepts of “Privacy by Design” and “Privacy by Default”,
which aim to ensure that privacy
into
applications from the design stage.
integrated
is
2.4.2.3
Respect for the Rights of the Individuals
concerned and Processing Times
In 2023, the Group’s Data Protection Officer teams
processed, within the legal timeframe, 495 data subject
requests, compared with 386 requests the previous year,
i.e. an increase of 28%. This increase is linked to a greater
awareness of individuals, who are better informed of their
rights, and to the introduction by Dassault Systèmes of
simplified procedures to facilitate requests submitted/
No complaint from a data subject has been forwarded by a
public authority, and no request for the communication of
cross‑border personal data has been made to the Group’s
Data Protection Officer.
2.4.2.4
Training and Awareness
is a key element for all Dassault Systèmes
Training
employees. At December 31, 2023, 98.5% of the base
workforce had received training in personal data protection,
compared with 99.4% at December 31, 2022. In 2023,
in addition to this recurrent mandatory training enabling
everyone to acquire the necessary knowledge, the Company
continued its specific training initiatives tailored to different
roles (see paragraph 2.3.2 “Developing Knowledge and
Know‑how”).
2.4.2.5
Personal Data Protection Certifications
Certifications relating to personal data protection are
listed in the table of certifications in paragraph 2.4.1.5
“Certifications”.
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2.4.2.1
Policies
regulatory developments,
Dassault Systèmes’ personal data protection policy
is
structured in three parts and covers the Company’s websites
and activities (customers, partners, visitors, etc.), employees
and job applicants. These personal data protection policies
and internal procedures have been updated to take into
account
in particular data
protection laws applicable in certain US states, Japan,
Australia and China. As part of its annual review process to
ensure ongoing compliance, its record of processing activities
all its procedures (including in the event of a security breach
affecting data subjects, or a request from a public authority)
have been reviewed, in particular through the use of the
3DEXPERIENCE platform.
2.4.2.2
Due Diligence and Governance
Dassault Systèmes has appointed a Group Data Protection
Officer and set up a cross‑functional team responsible for
taking into account both internal and stakeholder data
protection compliance requirements. In particular, this team
is responsible for:
— managing Dassault Systèmes’ internal compliance with
personal data protection laws and policies;
— continuously identifying and monitoring improvements
to Dassault Systèmes’ offerings, websites and
communications specifically to enable its customers
and other stakeholders’ compliance with personal data
protection laws, including but not limited to the GDPR.
Whether an entity is a data processor or controller entails
different obligations under the GDPR and other data
protection laws. In that respect, customers using Dassault
Systèmes SaaS offerings are considered to be responsible for
the processing of personal data that they need to use in this
context, with Dassault Systèmes acting then as a processor
for the personal data it is required to host as part of these
offerings. On the other hand, Dassault Systèmes is the data
controller for personal data processed by the Company in
connection with the use of its internal applications.
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2.4.3
Innovate for a Sustainable Future
Innovating for a sustainable future is part of the mission
of 3DEXPERIENCE Edu and the 3DEXPERIENCE Lab.
Dassault Systèmes trains and develops the talents of
tomorrow, providing them with the skills needed to create
disruptive projects with a view to a sustainable future.
These skills are an accelerating lever for future innovations,
enabling Dassault Systèmes to
sustainable world.
imagine and design a
Strategic alliances and trusted partners (see also paragraphs
2.4.3.3 “Strategic Alliances and Trusted Partners”, 2.5.5.2.2
“Enriching Strategic Partnerships”, and 2.7.1.2 “Ratings and
Awards”) actively support Dassault Systèmes’ approach.
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2.4.3.1
Giving Industry the driving Forces to
Transform Tomorrow
Dassault Systèmes is committed to helping companies and
individuals acquire new skills to invent tomorrow’s world,
thanks to 3DEXPERIENCE virtual worlds. Reporting to the
Industries, Marketing and Sustainability department, the
3DEXPERIENCE Edu organization is responsible for defining
and implementing programs to provide current and future
generations with the key skills industry needs to transform
itself, and build a sustainable future for all.
To this end, the 3DEXPERIENCE Edu organization works
closely with academic and educational establishments,
as well as with industry players, to offer learners the
opportunity to develop their skills throughout their lives.
Learners have access to initial and continuing training
programs built around the 3DEXPERIENCE platform, a
platform for innovation, specific knowledge and know‑how,
fed by a vibrant community of experts and students.
This community is supported by an international team
of employees working closely with the education sector.
3DEXPERIENCE Edu’s ambition
to help students,
educational institutions, companies and individuals acquire
is
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
Social, Societal and Environmental Responsibility
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the skills sought by the Manufacturing Industries, Life
Sciences & Healthcare and Infrastructure & Cities sectors to
imagine and design sustainable innovations. Its promise is
“Your skills, our future”.
2.4.3.1.1
Preparing the “Workforce of the Future”
Thanks to its close relationships with the academic and
professional worlds, Dassault Systèmes works every day to
develop learners’ skills in order to anticipate and meet the
future needs of industry, and strengthen their employability.
2.4.3.1.1.1
Train and Inspire
In 2023, 3DEXPERIENCE Edu strengthened its e‑learning
offering with new content and certifications. The Company
also works closely with
its customers to train their
employees, an essential factor for successful and sustainable
digital transformation and skills enhancement.
Beyond training, the aim is to stimulate (or reinforce)
interest in science, technology and sustainable innovation.
In 2023, the Company organized and supported more than
129 competitions for science and technology students
around the world. Using the 3DEXPERIENCE platform and
3DEXPERIENCE Works product development solutions
(SOLIDWORKS, SIMULIA, DELMIA), students were able to
take part in competitions inviting them to design humanoid
robots, electric submarines, solar‑powered racing cars,
next‑generation drones and space shuttles.
In India, the Aakruti 2023 design competition aims to give a
chance to all the country’s young people, men and women
from all backgrounds, from big cities to rural areas. This
inclusive competition brought together 8,870 competitors
from 245 schools across 23 Indian states. Of the 1,774
teams, 167 were all‑female.
2.4.3.1.1.2
Identifying tomorrow’s Skills
Preparing tomorrow’s workforce means anticipating the
skills that will be needed to equip industry for the challenges
ahead. Emerging professions require new skills, and
industry roles are changing. As a partner in the strategic
transformation of world leaders in industry and academia,
Dassault Systèmes is supporting this transformation. For the
past two years, the Company has been working to reveal the
skills needed to create sustainable innovations, particularly
in the Manufacturing Industries, Life Sciences & Healthcare
and Infrastructure & Cities sectors.
In order to mobilize all players, 3DEXPERIENCE Edu has
produced a series of reference publications outlining the
professions, disciplines and skills required to accelerate
the transformation of these three sectors. It’s a call to
action addressed to industry and academic leaders to raise
awareness and help them collaborate more closely to develop
these skills.
2.4.3.1.2
Promoting Collaboration between
Industry and Academia
From local collaborative projects to larger‑scale partnerships,
3DEXPERIENCE Edu weaves strong, recurring links to bring
together industrial and academic players, and to create
the synergies essential to achieving a common goal: giving
industrial players the vital forces to drive forward the
Industry Renaissance.
2.4.3.1.2.1
Solid academic Partnerships for a successful
Career Transition
In 2023, 3DEXPERIENCE Edu continued to build strong
partnerships with educational
institutions worldwide
to develop experiential learning, thanks to its dedicated
offerings focused on design, simulation, systems engineering
or digital manufacturing, but also around multiple
multidisciplinary projects and programs. Thanks to these
schemes, future graduates learn to collaborate within project
teams and are trained in the various applications available on
the 3DEXPERIENCE platform:
— Dassault Systèmes has signed a memorandum of
understanding with the ISAE Group (Institut Supérieur
de l’Aéronautique et de l’Espace) to accelerate the digital
transformation of the aerospace industry. This French
group, comprising the country’s six leading aeronautical
and space engineering schools, plans to integrate the
3DEXPERIENCE platform into all its training programs,
enabling 7,500 students to learn and use it on a daily
basis. This is also already the case for the Instituto Maua
de Technolgia (IMT) in Sao Paulo, Brazil, and TU Delft
University, one of the Netherlands’ leading aerospace
engineering schools;
— in October 2023, Dassault Systèmes also signed
a memorandum of understanding with Singapore
Polytechnic to create a sustainable product design center,
as well as an industrial training center, both dedicated
to 3DEXPERIENCE and aimed at both professionals and
students. The aim is to provide local startups, SMEs
and industries with the skills they need to tackle the
challenges of climate change.
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2.4.3.1.2.2
3DEXPERIENCE Edu Centers of Excellence:
emblematic Places for developing
Tomorrow’s Skills
to
the Company’s
these partnerships,
In addition
commitment to bringing the academic and industrial worlds
closer together is reflected in the “3DEXPERIENCE Edu
Centers of Excellence” initiative.
Launched in 2021, the initiative continues to expand. These
centers, operated by universities, consortia, foundations
or companies, feature the 3DEXPERIENCE platform. They
represent a real bridge between the academic and industrial
worlds, offering a physical, experiential and collaborative
space entirely dedicated to Industrial Innovation. The Centers
of Excellence are open to experts, professionals and learners.
By joining this initiative, schools gain access to the expertise
and resources they need to offer their ecosystems a complete
learning experience: virtual worlds on the 3DEXPERIENCE
platform, state‑of‑the‑art equipment used in companies,
courses and programs designed with local employers and
taught by trainers certified by the platform, etc.
While the approach is global, the Centers of Excellence are
truly local hubs where students, operators, technicians or
engineers from the region can meet and develop key skills
in the fields of virtual twins, materials science, data‑driven
manufacturing and more. These skills will enable them
to enhance their employability and prepare for future
challenges. Today, 19 institutions are part of the program.
They have been joined in 2023 by new partners:
— four training centers founded with the support of
the Mexican government or the states in which they
are located to support a local nearshoring strategy
(relocation close to consumer markets);
— Instituto Tecnológico y de Estudios Superiores de
Monterrey, also in Mexico. The influence of this private
university extends throughout Latin America;
— Cranfield University in the UK, renowned worldwide
for its training excellence, particularly in the aerospace
sector. The Center of Excellence at Cranfield University
is the first of its kind in the UK, and will offer students
and professionals courses and programs designed in
collaboration with employers in the sector;
— the Aérocampus d’Aquitaine in Bordeaux, an educational
consortium member of the “Campus des Métiers et
des Qualifications d’Excellence” program of the French
Ministry of Education and Youth, which targets all levels
of apprenticeship in aeronautics and adjacent sectors;
— the Jules Verne Manufacturing Academy, a connected
factory‑school serving the Nantes employment area in
France;
— the École Supérieure des Technologies Industrielles
Avancées, an engineering school in south‑west France,
heavily involved in modernizing industrial practices on
both sides of the Spanish border;
— the Sonny Astani Department of Civil & Environmental
Engineering
the University of Southern
California, Viterbi, USA, the first center focused on
sustainable infrastructure;
(CEE) at
— the KLE University in Hubli, India, which trains engineers
in the state of Karnataka, a local hub that combines
3DEXPERIENCE with
artificial
visual
intelligence, intelligent mobility, electric vehicles, energy
and the environment.
intelligence,
2.4.3.1.2.3
Collaborative Projects for Students
3DEXPERIENCE Edu helps student teams to take part in
both technical and sporting competitions, putting them at
the heart of an industrial, multidisciplinary and collaborative
project approach:
— a team of students from Delft University of Technology
has been designing, building and racing Formula cars
since 1999. The team is currently working on the DUT24,
their 23rd car;
— in India, the KRATOS Racing student team at Pimpri
Chinchwad College of Engineering, made up of
36 undergraduates, is designing, building and testing a
Formula 3 electric vehicle, with the aim of competing at
national and international level.
2.4.3.1.3
Transforming Ways of Learning
The 3DEXPERIENCE platform is a unique platform that not
only builds bridges between academia and industry, but
also transforms the way people learn through virtual twins,
giving everyone the key skills to innovate thanks to a catalog
of learning experiences linked to industry challenges: the
Education Experiences.
2.4.3.1.3.1
New Ways of Learning
The use of virtual twins offers an opportunity to accelerate
pedagogical approaches, particularly
in the context of
Project‑Based Learning (PBL), or “experiential learning”. As
a complement to physical classrooms, digital environments
–
infinitely reproducible and ubiquitously accessible –
offer considerable financial, environmental and efficiency
advantages. In the context of PBL, they offer a complete
learning experience through the realization of concrete
productions by students, or by immersing learners in virtual
scenarios, particularly industrial ones.
Virtual twins also play a key role in the development
of cross‑disciplinary pedagogy, helping to break down
traditional disciplinary silos. Working in these collaborative
environments, learners and teachers combine their expertise
and work together seamlessly, reinforcing multidisciplinary
interactions. In this way, they help shape individuals capable
of meeting real‑world challenges by seamlessly integrating
diverse perspectives and skills
into the virtual world,
fostering an integrated, holistic approach to education.
2
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES limiting the ecological footprint. In this context, it supports
projects focusing on everyday themes such as the city,
lifestyle and life sciences, drawing on various innovation
levers such as additive manufacturing, artificial intelligence,
big data and virtual and augmented reality.
The missions of the 3DEXPERIENCE Lab are to:
— support innovative products and services from different
industrial sectors, drawing on collective intelligence and
contributing to the progress of civil society. This program
is based on Dassault Systèmes’ conviction that collective
intelligence will give rise to innovative projects;
— accelerate the prototyping of projects by startups,
communities of innovators and research or innovation
laboratories, and bring their products or services to
market on a large scale;
— bring enthusiasts together in the various communities
available on the 3DEXPERIENCE platform.
This approach is based on a community of innovators
including:
— a central 3DEXPERIENCE Lab team, which manages
governance and implements the necessary technical and
contractual tools. It is the source of inspiration and relies
on the network of contributors;
— innovation mentors, employees of various Company
organizations, who help to identify and qualify projects;
— a community of participants and enthusiasts who
propose strategic orientations and guiding ideas on
specific subjects, and within which decision‑makers are
responsible for arbitration.
This community of innovators meets twice a year at startup
presentation sessions, during which members and the jury
express their preferences and select future projects for the
program, which aims to provide each selected startup with
the means to realize its development by giving it access to:
— the 3DEXPERIENCE platform, fostering digital continuity
and the development of cross‑organizational networks to
capitalize on knowledge and know‑how;
— a technical, marketing and communication tutoring
program, in which each Dassault Systèmes employee can
contribute his or her skills to help startups design, model,
simulate and industrialize their virtual twin;
— Dassault Systèmes’ international ecosystem to accelerate
startups’ product launches and international presence;
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2.4.3.1.3.2
Virtual Ttwins: creating Interest and
Vocations
Virtual twins are also stimulating engines for arousing
learning
interest. Adopting an experiential
learners’
approach such as Immersive Learning makes
it easier
to capture students’ attention and trigger a continually
renewed curiosity. By creating more attractive educational
experiences, virtual twins are even likely to awaken vocations
or instill a lasting interest in learning. That’s why a number
of Dassault Systèmes’ Education Experiences incorporate
Virtual Reality (VR) modules, promoting dynamic, engaging
teaching.
2.4.3.1.3.3
New Forms of Recognition
its certifications
Dassault Systèmes also wants to pave the way for new
forms of skills recognition by promoting new industrial
certifications, notably via digital badges. By systematically
into school and university
integrating
curricula
is
its partnerships,
strengthening the legitimacy and relevance of the skills
acquired by each learner on the market. This convergence
between
industry‑specific
certifications offers an innovative approach to promoting
student employability.
the school’s diploma and
the Company
through
2.4.3.1.3.4
A continuous Progress Sharing
To deepen its knowledge of educational practices and share
its experience of industry transformation with players in the
academic world, Dassault Systèmes continues to be actively
involved in scientific associations, including the American
Society for Engineering Education (ASEE), the Société
Européenne pour la Formation des Ingénieurs (SEFI), the
International Federation of Engineering Education Societies
(IFEES), the Global Engineering Deans Council (GEDC), the
International Society for Engineering Pedagogy (IGIP) and
UNESCO’s Center of Problem Based Learning.
(For more information, visit https://edu.3ds.com/fr)
2.4.3.2
Facilitating Innovation and Collective
Intelligence
The 3DEXPERIENCE Lab is Dassault Systèmes’ innovation
laboratory for startups and disruptive
innovations that
have a lasting, positive impact on the world and society,
and that follow the Sustainable Development Goals defined
by the United Nations Organisation. The 3DEXPERIENCE
Lab positions itself as a strategic partner for disruptive
innovations that are helping to change the world while
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Bits&Pretzel, Vivatech and CES) to raise their profile and
visibility.
Since the creation of the 3DEXPERIENCE Lab in 2015,
hundreds of projects have been proposed and processed by
a community of around 2,000 mentors. Some sixty projects
from all over the world are currently being supported,
particularly from the USA, India and Europe. The latest
projects to join the program include:
— Atacama Biomaterials develops a versatile poly‑film
material designed to replace plastic. By drawing on these
different technologies, the Company is able to produce
goods that are not only durable, but also environmentally
friendly;
— NetZero,
in
startup
another
taking part
the
3DEXPERIENCE Lab acceleration program, aims to
develop the production and use of biochar in tropical
remove carbon
developing countries
from the atmosphere, while making agriculture more
sustainable by
improving soil quality and reducing
fertilizer use;
to massively
— Lattice Medical offers a revolutionary product in the
healthcare field, Matisse, a bio‑resorbable chamber for
natural and personalized breast reconstruction;
— Marvel Fusion has adopted a new, non‑thermal approach
to fusion, based on the non‑radioactive fuel Proton‑
Boron11 (pB11). The process involves highly efficient
absorption of laser energy, controlled propagation of
laser pulses and acceleration of the fuel nuclei;
— Pacify Medical empowers surgeons with
innovative
technology, advancing the standard of care for burns
with patent‑protected technology that sprays skin tissue
over wounds for rapid wound healing using the patient’s
own skin.
The year 2023 has perpetuated the results from past
years
The first supported projects, industrialized and brought to
scale, continue to deliver results. Here’s some examples:
— reconstruction of virtual twins of patients’ organs for
pre‑operative simulation with Biomodex and Feops in
production in some hospitals;
— success of the first flights and missions of the XSun
autonomous solar drone and official sale of the drone at
the 2023 Paris Air Show;
— construction of the first vertical farm, Futura Gaïa, which
now has all the necessary authorizations;
— deployment of the VORTHEX project (virtual experience
of a radiotherapy session), which is now attracting
interest from equipment manufacturers and training
organizations.
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2
These results demonstrate a real
impact, and provide
concrete solutions to some of the challenges posed by the
United Nations’ Sustainable Development Goals. Beyond
the entrepreneurial success of these young startups,
Dassault Systèmes is proud to inspire an entire industry in
many sectors, for sustainable and responsible innovation.
The year 2023 was also a period of expansion
For the 3DEXPERIENCE Lab, 2023 has been an exciting year
for its four laboratories around the world located in Paris,
Boston, Munich and Pune.
In Paris, the year 2023 was punctuated by two new
digital startup pitch sessions on the cloud, confirming the
Company’s ambition to reference international projects with
innovations from the USA, Germany, India, Spain, France and
Sweden. Innovation blends with animation, with the launch
of the film LEO THE INVENTOR in France on January 31,
2024, illustrating the partnership between Foliascope, Jim
Capobianco (Disney Pixar veteran) and the 3DEXPERIENCE
Lab in the manufacture of Stop Motion elements of the film’s
set, thanks to the organization of the OPEN CODEX challenge
and the 3D modeling of Leonardo da Vinci’s machines.
It was on the 3DS Boston Campus that the MESHMERISE
event concept was organized in 2023, having previously
taken place in Munich, with the aim of bringing together
players in the technology industry around innovation and its
impact on the world and society.
Boston’s 3DEXPERIENCE Lab was also in the spotlight, with
a visit from the local CBS television channel for a report on
the LiftLabs startup, accelerated at the 3DEXPERIENCE Lab
and developing a solution to the very local problem of lobster
fishing: Liftlabs develops a lobster trap without ropes or nets
to protect whales.
In Munich, the 3DEXPERIENCE Lab hosted the final 2023
edition of F*ckup Nights in November 2023, a series of
monthly events focusing on professional failure and the
wealth derived from the experience of being able to bounce
back. The event, held
in November, brought together
founders, techies, engineers and enthusiasts to discuss the
importance of making mistakes on the road to success. This
resonates particularly in the field of technology, where the
success that seems to be ubiquitous is often preceded by
numerous failures.
Earlier in the year, Munich’s 3DEXPERIENCE Lab presented
a unique artificial intelligence experience in a dome at the
Deutsches Museum in Munich, on the occasion of the
Festival of the Future event, 3DEPERIENCE Lab’s acceleration
program. It was also an opportunity to present accelerated
startups such as The Exploration Company and its Nyx
capsule.
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Societal Responsibility
On May 11, 2023, India’s National Technology Day, the
3DS Pune Campus was visited by the Indian Prime Minister
Mr.Narendra Modi. On this occasion, the 3DEXPERIENCE Lab
organized an event to introduce students to careers in STEM
(science, technology, engineering and mathematics). Prime
Minister Modi visited the Innovation area, which included
a presentation of the various startups accelerated at the
3DEXPERIENCE Lab. It was a landmark visit that testifies to
the visibility of the 3DEXPERIENCE Lab and its investment
in India.
What’s more, Dassault Systèmes’ open innovation approach
has been extended to major groups to initiate collaborative
innovation projects such as Software République, in which
the Company is involved, notably by organizing a global
challenge on the mobility of the future.
Dassault Systèmes’ community of makers
is growing
considerably, with projects by young talent, innovating in
bio‑mimicry, fashion, frugal innovation and the Industry
Renaissance, and made possible by its 3D design, simulation
and additive manufacturing applications.
Finally, a new community, Frugal Innovation, was born in
2023 in India, made up of dynamic, collaborative projects
focused on frugal innovation. The aim of this community is to
develop affordable, sustainable and accessible technological
solutions to meet the needs of low‑income populations
worldwide.
(to find out more, visit https://3dexperiencelab.3ds.com/fr/)
2.4.3.3
Strategic Alliances and Trusted Partners
As one of the 26 founding members, in 2022, of the European
Green Digital Coalition, which recognizes the Information
and Communication Technologies (ICT) sector as a key player
in the fight against climate change, Dassault Systèmes has
this year committed to working groups to define priority use
cases for its solutions and propose concrete guidelines for
green digital transformation. This commitment will continue
in 2024, and the Company looks forward to refining the work
already carried out with coalition members.
in 2023 Dassault Systèmes continued
In addition,
its
involvement in the Digital with Purpose movement, which
promotes new technologies as a lever of transformation
contributing
the Sustainable
the achievement of
Development Goals and the trajectory set by the Paris
Agreement.
to
Aware of the importance of a holistic approach to the
many challenges facing the digital sector,
in 2023
Dassault Systèmes committed to initiatives and reflections
around the reduction of electronic waste. In this context, the
Company has joined the ECOsystem for greeN Electronics
(EECONE) project, funded by Europe. The aim of the EECONE
project is to reduce electronic waste on a European scale.
Indeed, the stakes are high: less than 45% of electronic waste
collected in the European Union is recycled correctly. That’s
why 49 companies (including Dassault Systèmes) located in
16 countries and operating in different sectors, have joined
forces to propose effective ways of reducing e‑waste in the
European Union, covering the entire value chain. EECONE is
a unique opportunity to leverage Dassault Systèmes’ virtual
twins and engage with this diverse ecosystem to help the
Company better advise its customers and support them in
their own navigation of this complex issue.
2.4.4
Philanthropy: Committing to Education and Research
Dassault Systèmes’ commitment
the
transformation of education and research is at the heart of
its purpose – to harmonize product, nature and life – and its
values.
supporting
to
This year, the Company worked with its entire ecosystem
to push back the boundaries of learning and knowledge for
the benefit of as many people as possible. The mobilization
of its employees, who devoted more than 60,000 hours,
contributed significantly to this approach. At the heart
of Dassault Systèmes’ philanthropy policy, its Fondation
has, since 2015, relied on virtual universes and collective
intelligence to build a more sustainable and egalitarian
society. Through three separate
located
respectively in France (for a European scope of action), the
United States and India, La Fondation Dassault Systèmes
legal entities,
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grants financial donations and makes available skills intended
for schools, universities, research institutes, museums or
other public‑interest organizations. The aim is to support
innovative projects in the fields of education, research and
heritage. These actions are both a catalyst and a reflection
of its purpose, but also a formidable tool for creating value in
fields as varied as health, ocean sciences and robotics.
Each entity has a Board of Directors and a Project Selection
Committee. Each Board of Directors meets two or three
times a year, and is responsible for approving the projects
presented by the Project Selection Committees of each
Fondation. In particular, the Board decides on the nature and
amount of donations to the partners behind the approved
projects. Project partners are required to submit a progress
report to the Boards of Directors.
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT In 2023, La Fondation Dassault Systèmes has continued to
support the 51 projects initiated in 2022, and has decided to
support 52 new projects: 25 in Europe, 19 in India and 8 in
the United States.
2.4.4.1
Education: preparing the Thinkers,
Inventors, Builders and Leaders of
Tomorrow
Among other things, Dassault Systèmes’ philanthropic
actions promote the creation and sharing of 3D educational
content, while strengthening the link with the business
world and
the understanding of current challenges,
particularly environmental ones. Pupils, students and adults
undergoing retraining are thus better equipped to make
career choices.
These actions respond to three major challenges:
2.4.4.1.1
Developing a Taste for Science and
Technology, Irrespective of Gender
or Social, Cultural and Geographical
Background
Numerous initiatives supported by Dassault Systèmes aim
to spark young people’s interest in innovation and inspire
them to include STEM (science, technology, engineering and
mathematics) subjects as part of their future studies. This is
achieved through hands‑on experiences in virtual universes
and the promotion of science and technology, in particular
through mentoring by the Company’s employees:
to
the
of
is a fine demonstration of
— conducted every year since 2017, the Made in 3D
introduce middle‑school
to
competition designed
and
innovation
culture
students
entrepreneurship
this
commitment in the three Fondations. Co‑created in
France with La main à la pâte Foundation, this initiative
brought together, in 2023, 3,200 French high‑school
students, getting them to work, in teams, on virtual
startup projects. In India, students from 100 schools in
31 states and territories took part. The students had the
opportunity to present their work to political figures at
the highest level, notably during National Technology
Week and the National Education Policy Summit. The
final took place in the prestigious setting of the G20
during the Start Up 20 event.
Social, Societal and Environmental Responsibility
Societal Responsibility
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weeks at Dassault Systèmes sites in France, carrying
out research projects. Supervised by Dassault Systèmes
employees, the students are able to learn about the
day‑to‑day work of engineering teams, while at the same
time getting to grips with their scientific methodology
and approach.
like researchers, the students
presented their work orally at the Apprentis Chercheurs
conference;
Just
— in India, the Lend A Hand India program aims to prepare
young people for the world of work and entrepreneurship
through ATLs (Atal Tinkering Laboratories), which are
spaces within schools dedicated to training and exchange
for students aged 14 to 18. The pilot was launched in
2022 with the training of 45 teachers to run these ATLs.
During the second phase in 2023, an internship was
offered to 24 undergraduate engineering students to
support 106 schools in their technical projects;
— in the USA, La Fondation
is supporting the Fab
Foundation to create a Fab‑in‑a‑Box educational kit
including 3D printing, vinyl cutting and milling machines,
as well as a laptop and design software. The initiative
aims to make advanced technology accessible, thus
fostering creativity in STEM industries;
2
— another flagship program,
run
since 2006 by
Dassault Systèmes’ academic unit, 3DEXPERIENCE Edu
(see also paragraph 2.4.3.1 “Giving Industry the driving
Forces to Transform Tomorrow ”), Course en Cours
encourages middle and high school students in France
to imagine, design, manufacture and race a mini‑vehicle
powered by an electric motor. Built upon professional 3D
simulation methods and tools, the program gives young
people an insight into the world of industry. In 2023, the
program attracted 4,684 students, 36% of whom were
girls.
if
it
is
relevant
is only
technology
Given that such an approach to promoting science
inclusive,
and
Dassault Systèmes and its Fondation support initiatives
aimed at creating a fairer educational system and fostering
academic ambition and commitment in all students, boys
and girls alike, whatever their social, cultural or geographical
involves targeted
background. First and foremost, this
actions for young girls, notably by putting them in touch
with role models, working on their self‑confidence and
combating self‑censorship:
In 2023, La Fondation also set up Made in 3D in the
United States;
— in France, La Fondation Dassault Systèmes also supports
the Robotique FIRST school competition, which pits
French middle and high school students against their
peers in the USA and Canada. The competition requires
students to build a robot that will take part in a challenge.
In order to win, students have to put their 3D modeling,
coding and programming skills to good use. In addition,
the Apprentis Chercheurs program enables middle and
high school students to spend Wednesdays for several
— in France, La Fondation Dassault Systèmes raises
awareness of scientific and technological careers among
young women by supporting several programs, such
as UPSTI Femmes & Ingénieures – Réussir en Sciences
et Technologies, in collaboration with the Union des
Professeurs de Sciences et Techniques Industrielles:
17 Dassault Systèmes employees had the opportunity to
talk to 400 middle and high school girls about their career
paths within a technology company. The Fondation also
supports the Ose inGe tutoring program run by the ISAE‑
SUPAERO engineering school Foundation;
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— in the USA, thanks to support from La Fondation,
Mass Robotics has encouraged 30 Boston‑area female
students to pursue a career in robotics by giving them
access to technical skills, mentors and a solid professional
network. For their part, MEDIDATA’s teams in New York
help future female developers prepare for job interviews,
via the Girls who code program.
Dassault Systèmes’ approach also includes specific initiatives
in underprivileged areas, where education is a key priority:
instilling in each and every person the desire to access a
professional career path, as well as the skills needed to
compete in the job market and provide for their needs:
— in the United States, La Fondation Dassault Systèmes
is collaborating with the Rhode Island Computer
Museum on a project called I – SHAPE, which aims to
introduce underprivileged students of all ages to the
principles of engineering and design, and in particular
3D technologies. The program is aimed at children from
minority and low‑income populations. La Fondation is
also supporting the Winners Circle XR Academy on an In‑
School XR Learning Lab project, which offers students a
new learning experience thanks to XR (extended reality)
technology. Some sixty students aged ten to fourteen
from low‑ and middle‑income families have benefited
from the project:
– in Chicago, La Fondation
is helping the Chicago
Industrial Arts & Design Center (CIADC) to acquire
equipment (CNS, 3D printers, etc.) to better connect
young people to vocational fields and develop their
skills in this area,
– in Boston, La Fondation works with two organizations.
On the one hand, the Reynolds Center for learning
and creativity, which offers a tutoring program for
struggling students, especially those who don’t speak
English at home. Secondly, Girlstart, which has enabled
over 200 girls from disadvantaged backgrounds to
benefit from a STEM education program,
– following the same approach, MEDIDATA teams
organize an annual coding camp. This ALL Star
Code brand
initiative also acts as a technology
incubator, with MEDIDATA volunteers assisting
scholarship‑holders for six weeks in the realization of
their projects;
— in France, the Cordées de la Réussite initiative, in
partnership with the Académie de Normandie, has
enabled 300 students from rural areas with limited
access to technology sites to discover such sites and
meet innovation professionals. Thanks to the Dassault
Systèmes’ employees’ skill‑based sponsorship, La
Fondation has also been supporting the Apprentis
d’Auteuil in the national Course en Cours competition
mentioned above since 2016. This social charity is
dedicated to welcoming, training and helping young
people experiencing social difficulties to integrate into
society, in order to help them to (re)gain a taste for
learning and more serenely apprehend collective work;
— in underprivileged areas of India, the ASPIRA initiative,
developed by La Fondation Dassault Systèmes, supports
female students on their path to employment, helping
them to earn an independent living and giving them
the means and desire to help society evolve. ASPIRA
comprises three programs, each focusing on actions
according to a typology of female students: support for
those at the end of their engineering studies (Graduate
ASPIRA), STEM courses for disadvantaged female
students (School ASPIRA), self‑employment skills for
rural students (Rural ASPIRA). ASPIRA also offers a
training program run by Dassault Systèmes employees
who act as mentors, and the creation of a dedicated
platform to support this transformation;
— still in India, Dassault Systèmes employees have been
bringing smiles to the faces of underprivileged students in
Pune, Bengaluru and Belagavi for more than a decade by
collecting donations of school kits. In July‑August 2023,
thanks to employee donations and the budget allocated
by the CSR committee of the Company’s Indian entities,
school kits were distributed to 950 students from
underprivileged backgrounds, including basic necessities
such as schoolbags, notebooks, folders, compasses and
colored pencils. The impact of this initiative can be seen
in the joy and support given to the students, who are
now better equipped.
By entrusting them with the manufacture of the
schoolbags, the program also contributes to helping
women from these very disadvantaged communities,
and to making them economically independent, through
collaboration with the Aadhar Mahila Udyog Foundation
(Mahesh Foundation).
Finally, in the United States, Dassault Systèmes supports
training and reintegration initiatives for veterans through
the CNC Machining Training for Warriors project run by the
Workshops for Warriors organization. The aim is to develop
their skills and enable them to obtain certification in 3D
printing and CAD/CAM programming. Thus, 117 veterans
were supported in their professional transition in 2023,
helping to meet the need for skilled workers in the advanced
manufacturing industry.
2.4.4.1.2
Educating Youth on Environmental Issues
In light of current environmental issues, one of the missions
of La Fondation Dassault Systèmes is to raise awareness of
environmental issues among the younger generations, to
develop their knowledge of these subjects and to encourage
vocations in sustainable innovation and skills development;
In 2023, three environmental issues have been prioritized:
oceans, renewable energies and materials.
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Oceans
The ocean is a true ecosystem, yet little‑known, and is
the main climate regulator. To help middle and high school
students grasp these issues while enriching their school
curriculum, La Fondation Dassault Systèmes, the French
Ministry of Education and Youth, ONISEP, Réseau Canopé
and the French Institut de Recherche pour l’Exploitation de la
Mer en France (IFREMER) have pooled their expertise to build
an innovative 3D learning path: Mission Océan. By 2022,
50 new educational contents for middle‑school students
had been created. In 2023, the teams focused on creating
educational content for high schools, including vocational
schools, which will be available in spring 2024.
issues and supports students
raises young people’s awareness of
La Fondation
environmental
in higher
education. It helps them develop the skills they need to
master the right tools and methodologies for preserving the
environment. Indeed, modeling the natural environment and
managing scientific data enables us to better understand and
anticipate the impact of mankind on the oceans and marine
biodiversity. This is an essential step towards implementing
more sustainable management policies.
the Université de Bretagne
La Fondation supports
Occidentale (UBO) and the ISblue consortium, which brings
together five engineering schools, CNRS, IFREMER and the
Institut de Recherche pour le Développement(IRD). Together,
they are developing the ImmerSEA Lab project, a virtual and
physical experimentation center dedicated to teaching and
research in coastal and marine sciences and technologies.
From the transformation and analysis of scientific data on
fishing, pollution or temperature, to the 3D modeling and
simulation of coastal or open sea landscapes, ImmerSEA Lab
enables students and researchers to grasp the context with
precision and establish forward‑looking scenarios for better
decision‑making. The ImmerSea Rade hackathon brought
together 25 students accompanied by 2 Dassault Systèmes
volunteers. Together, they created a scenario for a virtual,
interactive tour of the harbor from Brest to Ouessant. This 3D
model shows how the landscape and seascape have evolved
over the past 12,000 years, enabling visitors to assess the
impact of human activity on the acceleration of rising sea
levels, and to project future scenarios. It was presented to
the general public during the Fête de la Science.
Renewable energies
La Fondation continued to support renewable energies.
After supporting the creation of the Solar Center, a research
and skills development center for solar energy, for which
it joined forces with the Nagesh Karajagi Orchid College
of Engineering in Solapur (India), in 2023 La Fondation
initiated an exchange program between France and
India. A delegation of teacher‑researchers from Polytech
Nancy visited the laboratory dedicated to teaching solar
engineering, and worked out a collaboration strategy with
their Indian colleagues. Three French students completed
their internship at the Solar Center and contributed to the
development of prototypes.
Materials
La Fondation has decided to promote a better understanding
of sustainable materials. Thanks to the co‑development,
with the La main à la pâte Foundation, of resources and
educational initiatives aimed at primary and secondary
school teachers and trainers, pupils
learn about the
major families of materials, with particular emphasis on
their physico‑chemical properties. They will discover the
importance of the multiplicity of material varieties
in
everyday life, and the challenges to be met in terms of
sustainable development.
2.4.4.1.3
Strengthening the Collaboration between
the Education System and the Business
World and Industry Players
Since the business world and the skills it requires are evolving
with the acceleration of the technological and environmental
challenges we face, the world of education must remain close
to them, creating a virtuous and relevant circle between the
expectations of the younger generations, their training, and
the needs and challenges of the market and industry:
— in partnership with the CGénial Foundation, La Fondation
Dassault Systèmes offers secondary school teachers the
opportunity to visit Dassault Systèmes sites in France. By
immersing themselves in the Company’s culture, teachers
can better guide students in their career plans. In 2023,
95 teachers were welcomed at 8 Dassault Systèmes sites
by 42 volunteer employees, who presented their career
paths;
— in
India, La Fondation promotes employability by
bringing together the worlds of industry and academia
through its ConnectNext operation. Through a series
of webinars and mentoring sessions,
industrialists
introduce engineering students to their major short‑ and
medium‑term challenges, and provide them with fresh
insights to help them choose a coherent and promising
final‑year project;
— in 2023, La Fondation is supporting the Work Based
Learning Alliance initiative, which aims to revolutionize
STEM career exploration for high school students,
by offering hands‑on,
learning
opportunities. Students work in teams to complete CAD
projects proposed by industrial partners.
industry‑connected
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Using Heritage as Inspiration
Better understanding the past to better build the future:
heritage research benefits from the contribution of modeling
and simulation technologies to improve understanding of
heritage and enable scientists to better safeguard it, as well
as capitalize on its lessons to imagine new possibilities for
tomorrow.
In response to a request from the Centre d’Études
is providing
(CNRS‑IFAO), La Fondation
Alexandrines
financial and technical support for the reconstruction of one
of the seven world wonders, the Lighthouse of Alexandria.
A new scientific reading of the elements relating to this
mythical building will enable archaeologists accompanied by
Dassault Systèmes engineers to propose an unprecedented
3D model.
2.4.4.3
Contributing to a Collective Effort:
taking a Stand at times of Major Crisis
Since circumstances sometimes call for stepping outside
one’s area of expertise to contribute to the collective
effort and make a difference for future generations,
Dassault Systèmes also lends its support, during major
crises, to initiatives that seem relevant.
Dassault Systèmes also acts in favor of the Nation‑Army
link by supporting the commitment of its employees in
France to the national reserve corps, notably through an
agreement signed in 2018 with the French Ministry of the
Armed Forces. This agreement was renewed in early 2024. It
entitles Dassault Systèmes employees, in France, to benefit
from up to twelve days’ absence per year, five of which are
paid for by the Company. A similar commitment is in place
for the employees in the UK.
2.4.4.4
Prizes and Awards
The actions of La Fondation Dassault Systèmes are
recognized within its wider ecosystem. For the third year
running, it received a CSR Impact Award in India. The CSR
Impact Awards recognize companies and foundations for
high‑impact projects through a multi‑stakeholder approach.
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2.4.4.2
Research: pushing the Boundaries
of Knowledge to Foster Sustainable
Innovation
is the second pillar of Dassault Systèmes’
Research
philanthropic commitment. The Company and its Fondation
support those who strive to imagine and create a more
sustainable world for all on a daily basis, helping them
to push back the boundaries of knowledge using virtual
universes in fields such as health and heritage.
2.4.4.2.1
Accelerating Medical Research through
Technology
Enabling everyone to see properly is a social issue. This is
why La Fondation in the United States has supported the
Mass Eye and Ear project, which aims to develop a virtual
twin of the eye. This will facilitate understanding of the
mechanisms and hence treatment of blindness, focusing
ischemic optic
on glaucoma and non‑arteritic anterior
neuropathy.
Similarly, mobility is another public health issue as the
population ages. La Fondation is supporting a research
project being carried out by ITM Atlantique and the
Fondation de l’Académie des technologies, focusing on three
areas: the construction of a morpho mechanical model of the
knee to predict the consequences of a therapeutic action,
the modeling of the biological mechanisms of cartilage
degeneration, and the integration of the two previous stages
to create a multi‑scale virtual twin of knee rheumatology
for
therapeutic and preventive purposes. Educational
content derived from this research will be used by medical
engineering students.
Since 2019, the Social Innovation Lab (SIL) created by
MEDIDATA has been based on the voluntary commitment
of employees who support non‑profit organizations working
to promote Life Sciences. The aim is to contribute to the
development of priority projects for these organizations,
which do not have the resources to bring them to fruition as
might be the case in industry. The projects supported by the
Social Innovation Lab have a real impact on the day‑to‑day
lives and treatment of patients, whether they:
— implement a survey tool for patients in clinical trials with
the Lazarex Cancer Foundation;
— collect data to increase participation in clinical trials
based on breast cancer subtypes by origin with the
Tigerlily Foundation;
— work with the Cambridge Rare Disease Network (CRDN)
to raise the profile of rare diseases;
— create a free interactive tool to help patients, relatives,
doctors and researchers find their way around drug
repositioning with the Castelman Disease Collaborative
Network (CDCN).
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2.5
Environmental Responsibility
Even as the sixth of nine planetary limits was crossed, major
climatic events (storms, floods, droughts and heat waves)
multiplied, and 2023 was the hottest year on record, with
a global temperature anomaly of +1.48°C compared to the
pre‑industrial era. The climate emergency is more urgent
than ever, and the goal of keeping global warming below
1.5°C seems hard to achieve in the short term. However,
the 2023 Climate Adaptation Gap Report issued by the
United Nations Environment Program (UNEP) highlights the
inadequacy of investment and planning for adaptation to
climate change: in developing countries, the financing needs
for adaptation to climate change would be ten to eighteen
times greater than current flows, and growing rapidly. UNEP
estimates this shortfall at between $194 and $366 billion a
year.
Faced with this situation, and going beyond political
intentions, major economic players like Dassault Systèmes
are stepping up their efforts to strengthen their climate
strategy. As a designer of 3D software and virtual twins,
Dassault Systèmes is firmly committed to this approach. To
reflect its determination to accelerate the decarbonization
of the industry, at the end of 2022 the Company extended
its scope submitted to the Science‑Based Targets initiative
(SBTi) for better control of its carbon footprint by 2027, and
is aiming for carbon neutrality by 2040 at the latest.
In order to reduce risks and promote the transition to a
low‑carbon economy, this neutrality will be achieved by
continuing the reduction, adaptation and offsetting actions
already deployed, and by implementing a global, long‑term
voluntary carbon offsetting strategy.
Dassault Systèmes is convinced that everyone’s involvement
plays a crucial role in the fight against climate change. Thus,
thanks to the 3DEXPERIENCE platform, the connection
of knowledge and know‑how in design, simulation and
materials science represents a significant potential for
accelerating the sustainable transformation of its ecosystem
of partners and customers, in the twelve industries in which
the Company operates.
In this context, in 2023, Dassault Systèmes has in particular:
— continued to develop sustainability enabling solutions;
— estimated eligibility and alignment rates in line with EU
Taxonomy recommendations;
— refined the financial assessment of the risks and
opportunities associated with the climate transition;
— carried out a double materiality assessment as part of the
preparatory work for the adoption of the CSRD for fiscal
2024;
— obtained validation of its SBTi objectives after extending
its scope of submission and improving its Environmental
Accounting and Consolidation Principles;
— continued
its work to
implement a carbon‑neutral
strategy by 2040 at the latest;
— enhanced automation of
its reporting processes to
improve the monitoring of its sustainability performance;
— has maintained its commitment to transparency by
responding to main non‑financial questionnaires;
— launched Sustainability Month, a series of local initiatives
to raise awareness of environmental issues among all
employees;
— made available to all employees a learning module to
facilitate the transition to action in favor of energy
efficiency and circular economy.
The following paragraphs present the Company’s governance
with regard to environmental matters, and then detail,
according to their level of materiality, Dassault Systèmes’
commitments to combating climate change, preserving
water resources and biodiversity, and promoting the circular
economy.
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2.5.1
Environmental Governance
As detailed in paragraph 2.1 “Sustainability Governance”,
sustainable development
issues are at the heart of
Dassault Systèmes’ strategy and are managed at the
highest level of corporate governance. Each of these bodies
attaches particular importance to climate impacts, risks and
opportunities.
General Secretary of Dassault Systèmes, in particular to
examine the impacts, risks and opportunities associated
with managing the Company’s environmental footprint and
the transition and adaptation challenges of climate change.
The Chief Sustainability Officer is its secretary. In 2023 the
Committee’s agenda included the following items:
— the portfolio of sustainability enabling solutions;
— improvement of the methodology used to determine the
share of turnover aligned with the EU Taxonomy, as well as
the process of verification by an independent third party;
— financial analysis of
risks and opportunities
associated with the climate transition, in line with TCFD
recommendations;
the
— monitoring of the project to prepare for the implementation
of the CSRD, and in particular the review of the initial
conclusions of the double materiality assessment and the
identification of additional indicators to be published;
— validation of the extended submission of science‑based
targets (SBTi);
— continued work on a carbon‑neutral strategy for 2040;
— marketing, external communications and employee
awareness of environmental and eco‑design issues;
— the strategy for responding to non‑financial questionnaires
and monitoring the ratings obtained.
2.5.1.3
The Sustainable Development
Department drives environmental
Action
The Sustainable Development department is coordinating
the Company’s environmental actions by carrying out the
following missions:
— support for the development of sustainability enabling
solutions, particularly with regard to greenhouse gas
emissions (mainly the assessment, monitoring and
reduction of emissions), and the circular economy (such
as optimizing the use of natural resources right from the
design phase, improving product recyclability, etc.);
— analysis and documentation of the criteria used to
prepare EU Taxonomy indicators, and qualification of the
portfolio of solutions to define eligibility and alignment
rates;
— support in assessing and managing the physical and
transitional impacts, risks and opportunities associated
with climate change;
2.5.1.1
The Board of Directors oversees
Environmental Risks and Opportunities
Dassault Systèmes’ lead director on the Board of Directors
for sustainability matters receives regular briefings on both
climate risks and opportunities as part of her oversight
responsibilities of environmental, social and governance
(ESG) issues. These climate risks and opportunities have
received special attention in 2023. Among other measures,
Dassault Systèmes has thus updated and extended its
science‑based greenhouse gas emissions reduction targets.
Dassault Systèmes has also continued its efforts to develop
sustainability enabling solutions.
Each Committee of the Board of Directors addresses climate
issues in line with its mission:
— the Scientific Committee examines the development
of the Dassault Sytèmes portfolio, which aims to help
customers reduce their climate impact;
in
— the Audit Committee has
included
its annual
program the examination of any changes in the new
regulatory requirements for climate reporting under the
Corporate Sustainability Reporting Directive (CSRD),
and the introduction of the new European Sustainability
Reporting Standards (ESRS) with which the Company will
have to comply from fiscal 2024;
— the Compensation and Nomination Committee reviews
the ESG performance criteria that determine part of the
annual variable compensation and long‑term incentive
plans for the Chief Executive Officer and Executive
Committee members.
The members of the three Board of Directors’ committees
now meet at two joint annual sessions: one dedicated to
sustainability matters, and the other to risk prevention and
management within the Company, including ESG risks.
2.5.1.2
The Sustainability Steering Committee
directs Environmental Action
The heads of all the Company’s key functions participate
in a quarterly meeting, co‑chaired by the Executive Vice‑
President, Industry, Marketing & Sustainability, and the
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT — steering environmental reporting and greenhouse gas
2.5.1.5
emissions performance;
The Finance Department ensures the
Reliability of Sustainability Reporting
and the Sustainable Procurement
function acts on the Supply Chain.
— definition of the greenhouse gas emissions reduction
trajectory as part of the Company’s environmental
strategy;
— preparing for carbon neutrality and orchestrating the
voluntary carbon offsetting strategy;
— review of the environmental policies of the Company’s
main departments
Information &
Technologies, R&D, Procurement & Travel, Marketing, etc.);
(Real Estate,
— monitoring and coordinating environmental and climate
adaptation plans implemented by the main departments,
in particular to optimize water and energy consumption,
and to manage waste and the impact on biodiversity;
— management of responses to non‑financial questionnaires,
including the CDP “Climate Change” questionnaire;
— creation of sustainable development
training and
awareness programs according to roles (marketing and
communications, facilities, procurement, management/
strategic positions, finance);
— support for internal communication initiatives, notably
dedicated to Sustainable Development Month
(see
paragraph 2.5.2.4.6 “Fostering Sustainable Innovation,
raising Awareness and providing Training”) and
Sustainable Innovation (see paragraph 2.4.3.3 “Innovate
for a Sustainable Future”);
— participation
in external professional networks on
sustainability and circular economy;
— participation in discussions organized by COP28;
— regulatory watch on the EU Taxonomy regulation.
2.5.1.4
The Corporate Strategy Department
analyzes Transition Risks and
Opportunities
Transition risk analysis is coordinated and steered by the
Corporate Strategy department, which ensures:
— that each Industry organization in charge of market
solutions portfolio
the associated
risk analysis methodology
strategy and
has
recommended by the Company and detailed below;
implemented
the
— risks and opportunities are monitored at least twice
a year, or more frequently if the risk or opportunity
identified is of major importance for the market in
question (e.g. electrification of the automotive market,
monitored on a monthly basis);
— that the results of these risk and opportunity analyses
help guide the development of the solution portfolios and
markets on which Dassault Systèmes focuses, as well as
investments to support Dassault Systèmes’ customers in
reducing climate‑related risks.
Social, Societal and Environmental Responsibility
Environmental Responsibility
2
The Sustainable Finance & Procurement department
contributes its expertise in financial evaluation reporting
processes and supports functions in their management
of climate issues by carrying out the following actions and
missions:
— consolidating environmental indicators, and improving
and monitoring the reliability of the climate reporting
process, in particular by developing carbon accounting
principles and improving the level of internal control over
the data and estimates used;
— regulatory watch within the framework of the Corporate
Sustainability Reporting Directive (CSRD);
— the gradual implementation of CSRD and ESRS to ensure
the Company’s compliance with these new corporate
sustainability reporting standards from fiscal 2024;
— supporting the selection of climate scenarios and
reviewing the financial assessment of climate risks,
whether physical or transition risks, proposed by the
Corporate Strategy and the Sustainability departments.
This department is also responsible for recording any
consequences on the Group’s financial statements;
— involving major suppliers (IT equipment producers, data
hosting service providers and real estate lessors) in
reducing emissions from the upstream value chain by
encouraging them to commit to science‑based emission
reduction targets, notably through criteria included in
public tenders and contracts, and discussions on their
environmental policies;
— more broadly, support for operational functions (IT, Real
Estate, Marketing and others), in analyzing the feasibility
of the environmental policies of these functions and
planning the actions to be implemented in the supply
chain and as part of the Company’s Travel and Mobility
policy.
In line with the recommendations of the TCFD and, from
2024 onwards, the CSRD, this governance primarily aims to
assess and manage environmental risks and opportunities, in
particular related to climate, but also those related to social
or societal matters within the upstream value chain, in line
with Dassault Systèmes’ sustainability strategy over short,
medium and long‑term time horizons. The Company is also
committed to integrating this approach within its operational
departments, and to improving the quality of information
and transparency on its non‑financial performance vis‑à‑vis
its stakeholders.
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2.5.2
Climate
to
feed
in order
Over and above its objectives to reduce its own footprint,
and
its climate adaptation plan,
Dassault Systèmes has assessed, within the methodological
framework recommended by the TCFD and the CSRD,
the short, medium and long‑term climate‑related risks
and opportunities that could have a significant financial
impact on the Company. They are assessed as “significant
risks” or “significant opportunities” when the probability
of occurrence is estimated to be high, and the resulting
financial impact is considered to be “medium”, “high” or
“very high”. This analysis is based on several prospective
scenarios for transition and climate change as proposed by
the Intergovernmental Panel on Climate Change (IPCC).
These scenarios use assumptions whose degree of reliability
remains uncertain.
Although physical risks were assessed as “insignificant”,
several points of attention identified in 2022 were confirmed
in 2023 (the methodologies are described later in this
paragraph):
— physical risks, such as extreme weather conditions,
floods, droughts and heat: in the long term, if the global
ecological transition does not take place quickly enough,
these events will exert increasing pressure on supply
chains, and potentially on operations, particularly on
physical infrastructures, such as data centers and their
energy supply. In this context, diversification, assessment
of supply chain resilience and close monitoring of site
security and business continuity plans in the event of an
extreme event are all initiatives designed to feed into a
comprehensive adaptation plan (see paragraph 2.5.2.4
“Resource Use and Climate Action Plans”);
— short‑term transition risks, such as climate inaction
or failure to meet climate targets, could also damage
Dassault Systèmes’ reputation. The expectations of
its stakeholders, whether customers, employees or
investors, with regard to the contribution the Company
can make to the rapid transition to a
low‑carbon
economy are growing, and attest to the fact that this
transition risk is widely shared and identified. In the
medium to long term, some of Dassault Systèmes’
customers may find it difficult to meet the demands of
the energy and sustainable transition, which could have
an indirect impact on its revenue in certain sectors.
Indeed,
implementation of poorly anticipated
regulatory restrictions impacting customers, such as the
introduction of a carbon tax at Europe’s borders from
2026, or the ban on new cars with internal combustion
engines from 2035 within the European Union, could
have a significant impact on the markets concerned;
the
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— as part of its assessment of the socio‑economic transition
risks associated with Dassault Systèmes’ own operations,
the Company has also taken into consideration certain
potential risks, such as:
– for Scope 1, the introduction of a carbon tax on
company cars, refrigerants or energy sources such as
natural gas or fuels,
– for Scope 2, the availability and price volatility
of Energy Attributes Certificates (EACs), such as
Renewable Energy Certificates (RECs) or Guarantees
of Origins (GoOs), which could affect the Company’s
ability to reduce its GHG emissions,
– for Scope 3, the introduction of a carbon tax on
business travel, employees’ commute or emissions
linked to the purchase of goods and services;
— transition
in
the
short
opportunities:
term,
Dassault Systèmes has identified sustained customer
demand for technologies that enable them to innovate
faster and more sustainably. Paying systematic attention
to environmental issues in the enhancement of the
3DEXPERIENCE platform and its solutions, the Company is
well positioned to provide eco‑design and product lifecycle
modeling solutions using virtual twins for industries
most impacted by the need for transition, such as the
ground transportation, aviation and energy industries. In
the medium and long term, in an increasingly restrictive
climate regulatory context, Dassault Systèmes could
have a significant competitive advantage thanks to its
virtual twin offering, whose solutions contribute directly
to the decarbonization of industry and the recycling of
products and services, and present significant commercial
opportunities (see paragraph 2.5.2.4 “Resource Use and
Climate Action Plans”).
2.5.2.1
Climate‑Related Impacts, Risks and
Opportunities
As part of the TCFD, a detailed analysis of climate scenarios
was launched in 2021, and has been ongoing since, in order
to better understand and assess the risks and opportunities
of transition. This analysis is carried out separately on the
basis of:
— two climate scenarios to assess physical risks;
— a transition scenario to assess the transition risks and
opportunities.
The risks and opportunities analysis focuses on two major
scopes: Dassault Systèmes’ operations and Dassault Systèmes’
upstream and downstream value chain
(suppliers and
customers).
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Climate Scenarios
2.5.2.1.1.1
Transition and Climate Change Scenarios
The objective of the climate scenario analysis is to assess
the resilience of the Company’s operating model to climate
events, with the ambition of anticipating the potential
impacts of climate change, the effects of transition, and thus
guiding the strategic thinking of Dassault Systèmes.
The TCFD recommends a joint analysis of the physical risks
stemming from climate change in conjunction with the risks
and opportunities associated with climate transition, as
both phenomena occur simultaneously. the methodological
approach suggested for this analysis entails assessing the
potential impacts of a transition scenario on the one hand,
and of several climate change scenarios on the other.
Climate change scenarios
These scenarios are a combination of Representative
Concentration Pathway (RCP) and Shared Socio‑economic
Pathways (SSP), as developed by the Intergovernmental
Panel on Climate Change (IPCC).
The RCPs trace the concentrations of greenhouse gases,
aerosols and other chemically active gases in the atmosphere.
They have been developed to be representative of the
main scenarios existing in the scientific literature, and are
named based on the radiative forcing they achieve by 2100.
They represent different magnitudes of global warming
anticipated between now and the end of the century.
The different SSPs trajectories represent projections of
demographic change, levels of urbanization and growth that
the world could experience based on the climate policies that
would be implemented, with global warming in 2100 ranging
from a minimum of 3.1°C to a maximum of 5.1°C above
pre‑industrial levels. The SSP scenarios represent different
projections of global development
in which emissions
reductions will – or will not – be achieved.
Transition scenarios
Transition scenarios anticipate possible changes in political
and economic systems, and in the level of international
cooperation, that could sufficiently reduce GHG emissions,
limiting the global temperature rise to 1.5°C or 2°C.
2.5.2.1.1.2
Scenarios Selected to Assess the Impacts of
Climate Change
The analysis initiated by Dassault Systèmes within the
methodological framework proposed by the TCFD is based
on the following scenarios:
— Climate change scenario SSP 1 – 2.6: this scenario is
the combination of the SSP 1 and RCP 2.6 trajectories.
It depicts a world moving towards sustainable practices
thanks to strong
limiting
the global temperature rise to 1.8°C (by 2050). In this
scenario, GHG concentrations peak in 2020, then decline
steadily. It is aligned with the Sustainable Development
Scenario drawn up by the International Energy Agency;
international cooperation,
Social, Societal and Environmental Responsibility
Environmental Responsibility
2
— Climate change scenario SSP 5 – 8.5: this scenario is
a combination of the SSP 5 and RCP 8.5 trajectories,
known as the “status quo”. Based on a fossil fuel‑based
economy, with no change in policy and an increase
in greenhouse gas emissions, this scenario leads to
an increase of 4.4°C by 2100. GHG concentrations
would then rise until 2100. This pessimistic scenario
is commonly used to assess resilience in the face of a
“worst‑case scenario”, where multiple strong physical
impacts would occur.
Dassault Systèmes uses these two scenarios to assess
and improve its resilience to the potential physical
impacts of climate change;
2
— Sustainable Development Scenario (SDS): this transition
scenario was developed by the International Energy
Agency (IEA), and published in its World Energy Outlook.
It describes a plausible pathway that honors the Paris
Agreement target of “well below 2°C” (Sustainable
Development Goal 13 – SDG13), while achieving universal
access to energy (SDG7) and improving air quality
(SDG3.9). In this scenario, in addition to considerable
efforts to achieve emissions reductions in the short term,
all current commitments to a net zero emissions balance
(by 2050) must be met.
Dassault Systèmes is using this scenario to assess and
improve the resilience of its business model in the
transition to a low‑carbon economy.
2.5.2.1.2
Process for identifying and assessing
Climate‑Related Risks
2.5.2.1.2.1
Methodology to Assess Climate Hazard
Physical risk assessment
methodologies:
is based on the following
— for Dassault Systèmes’ operations: the risks associated
level rise, extreme precipitation, extreme
with sea
wind speeds, the number of days with heat waves, the
probability of hail and thunderstorms, the frequency
of droughts, and forest fires are assessed using Jupiter
Intelligence, a benchmark tool for climate risk analysis.
Twenty‑six of Dasault Systèmes’ key sites have been
evaluated in detail, based on the two selected climate
scenarios (SSP 1‑2.6 and SSP 5 – 8.5), to obtain a Climate
Score™ corresponding to a level of climate danger per site
and per nature of physical risk, at different time horizons;
— for Dassault Systèmes’ value chain: the risks of rising
temperatures, heavy precipitation, drought, surface
winds and sea level rise are assessed using the IPCC
Group I Interactive Atlas. Based on the IPCC’s Sixth
Assessment Report (published in 2022), this tool uses
several models to provide detailed information on a
global scale over different time horizons. The information
is aligned with the IPCC scenarios, notably SSP 1‑2.6 and
SSP 5‑8.5 5, selected by the Company.
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2.5.2.1.2.3
Methodology to Calculate the Potential
Financial Impact of Physical Risks
To determine the level of potential financial impact resulting
from physical risks, Dassault Systèmes uses a methodology
that directly involves the selected climate change scenarios.
Each climate hazard is matched in the IPCC scenarios to an
indicator describing the magnitude of the change impacting
operating conditions. For example, the climate hazard
corresponding to temperature rise is scaled in terms of the
number of days exceeding 35°C per year, with 2014 as the
reference year. This indicator follows a progressive scale
according to the scenario selected and the time horizon
considered.
Dassault Systèmes has analyzed how
its operational
activities and the elements making up its upstream and
downstream value chain could be affected by the indicators
of each climate hazard and their progression over the time
horizons envisaged. This analysis was carried out with the
support from the key managers of the relevant departments
– namely the Real Estate, the Human Resources, the
Information & Technologies,
the Procurement
department.
and
The main types of potential impact on Dassault Systèmes’
activities or value chain are:
— accelerated impairment on computer hardware and real
estate equipment;
— increased need for maintenance of real estate equipment
and computer hardware;
— disruption in computer hardware and energy supply
chains;
— increase
in
insurance cover for
infrastructure and
employees.
Each type of potential impact is associated with one or more
corresponding financial components, thus generating a scale
of potential financial impacts linked to the progressive scale
of the risk level.
Using these two scales, the formula applied to determine the
potential financial impact of each physical risk is:
Risk level x Potential level of financial impact x Value of
corresponding financial item.
Fourteen regions of the globe, representing the trade
areas involved with Dassault Systèmes’ value chain, have
been analyzed using this atlas. The analysis revealed a
level of climate hazard by geographical zone and type
of risk, over different time horizons, covering 100% of
expenses and revenue.
To assess the physical risks associated with climate
change, the time horizons considered correspond to the
recommendations of the IPCC Group I Interactive Atlas:
— 2021 to 2040 for the short term;
— 2041 to 2060 for the medium term;
— and 2081 to 2100 for the long term.
2.5.2.1.2.2
Methodology to Calculate the Level of
Physical Risk
The level of physical risk is determined using the following
variables:
— climate hazard, which is the probability of the occurrence
of a climate event likely to have repercussions on people,
infrastructures or resources, and the potential impact
of this risk. The level of climate hazard is derived from
the Jupiter Intelligence tool for the scope of operations,
and from the IPCC Group I interactive atlas for the value
chain;
— exposure, which is the presence of people, infrastructure
or resources likely to be affected. The level of exposure
corresponds to the proportion of Dassault Systèmes’
business carried out in the geographical area concerned
by the assessment, as measured by expenses and
revenue;
is an
— vulnerability, which is the propensity or predisposition
to be affected. This predisposition
intrinsic
characteristic of the affected element. Vulnerability also
takes into account the ability of the group of people
concerned to adapt to the event. The level of vulnerability
corresponds to Dassault Systèmes’ ability to prevent
the potential impacts of physical risks, react to the
occurrence of a natural disaster and ensure business
continuity.
Several calculation formulas for the risk level were considered
as part of the assessment carried out by Dassault Systèmes
to take into account the specific features of the scope under
consideration:
— for the scope of operations, the formula applied to
determine the level of net risk is:
Risk level =
Climatic hazard x Exposure x Vulnerability
— for the value chain perimeter, the formula applied to
determine the level of net residual exposure is:
Risk level = Climatic hazard x Exposure.
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2.5.2.1.2.4
Results of Physical Risk and Potential Financial Impact Assessment
The climate scenario analysis carried out reveals a relatively
low level of overall risk for Dassault Systèmes for both
scenarios, all risk types and time horizons. The main climate
hazards to which the Company’s operations are exposed are
drought, heat and precipitations. India, China, Korea, Japan
and North America are the most concerned geographical
areas of the world, with risk levels that remain nonetheless
quite moderate, outside the long‑term horizon of the “worst
case” scenario. Once the risk prevention and mitigation
criteria taken into account, the residual risk levels (for
operations) and the Company’s global level of exposure (for
the value chain) end up in their vast majority low or very low.
The potential financial impact of physical risks related
to climate change
risk
mitigation and adaptation measures) is estimated at less
into account
(before
taking
than€20 million per year for all scenarios and time horizons,
with the exception of the “status quo” scenario over the long
term (2100), for which the impact is estimated at less than
€40 million.
Once risk prevention and mitigation measures have been
taken into account, the potential financial impact of physical
risks linked to climate change is estimated at less than
€5 million per year for all scenarios and time horizons, with
the exception of the “worst case” scenario (“status quo”)
over the long‑term horizon (2100), for which the impact is
estimated at less than€6 million.
As no significant events or new implementations have
altered the outcome of this assessment, it has not been
reviewed in 2023.
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2.5.2.1.2.5
Methodology for Assessing Transition
Related Risks and Opportunities
Transition risks and opportunities are assessed using the
following methodology:
— risks linked to the categories of policy & legal, technology,
market and reputation were assessed on their own with
the support of Dassault Systèmes’ main operational
managers for the main functions potentially impacted;
— opportunities related to energy efficiency, new energy
sources, products and services, markets and resilience
were similarly assessed with the support of the
Company’s senior management.
The methodology is based on the Sustainable Development
Scenario (SDS) of the IEA World Energy Outlook. It is similar
to that used to assess physical risks, and incorporates four
variables:
— assessment of the risk
level of Dassault Systèmes
when confronting the challenges of the transition to a
sustainable economy;
— the short‑, medium‑ and
long‑term horizons, set
respectively at 2030, 2040 and 2050, as suggested by
the TCFD methodological framework.
The main categories of risks and opportunities associated
with the transition as listed in this framework, are as follows:
Risks:
— policies & legal, including changes in regulations that
may affect business models and their relevance, generate
compliance costs or additional litigation;
— technology, mainly through technological breakthroughs
affecting companies’ strategic processes, products and
services, or the positioning of certain players in the value
chain;
— market, through unfavorable changes in consumer behavior
and expectations, and by profound changes in market
structure, dynamics and the competitive environment;
— reputation, by the inability to adapt to the expectations
of customers, investors and stakeholders at large;
and opportunities:
— in terms of energy efficiency, through savings linked to
the optimized use of raw materials;
— linked to energy sources, through the use of alternative,
low‑carbon sources;
102
— products and services, generated by the emergence of
new business models focused on products and services
adapted to new economic conditions;
— market, through the dynamics of diversification and
adaptation of business models to consumer expectations
and behaviors;
— resilience,
through actions
innovations
implemented to promote the robustness of operating
models.
taken and
2.5.2.1.2.6
Methodology to Calculate the Level of
Transition Risks and Opportunities
In 2023, Dassault Systèmes has focused its efforts on
assessing downstream market risks and opportunities, as
well as on a transition risk impacting its upstream value
chain.
Risks on Downstream Market
The following approach has been applied to 17 segments
covering 7 of the 12 Industries in which the Company
operates, and for which the probability of transition risk
has been assessed as high. These seven industries are
Transportation & Mobility, Aerospace & Defense, High‑Tech,
Industrial Equipment, Infrastructure, Energy & Materials,
Architecture, Engineering & Construction, and Life Sciences &
Healthcare. The segments selected for analysis cover around
73% of the Company’s 2023 software Revenue.
The work involved:
— providing a qualitative description of the transformation
taking place in the industrial segment concerned, in the
context of climate change and the ecological transition.
For example, the transition from internal combustion
engine vehicles (fossil fuels) to battery‑powered vehicles
(electrification);
— translating this transformation into a metric associated
with the segment’s overall market and sub‑metrics
associated with the transforming sub‑markets making
up this segment. The metrics used are, for eample, the
demand for a product, market size (in volume or value),
or projected energy consumption (example of a metric:
the market size (in projected numbers of units sold) of
vehicles, the metric is equal to the sum of its sub‑metric;.
example of sub‑metrics: number of electric vehicles
compared with. number of ICE (internal combustion
engine) vehicles sold);
— describing the quantitative evolution of sub‑metrics:
growth, stagnation or decline in the market concerned,
depending on the transition assumptions for the market
in question;
— analyzing metric trends over three time horizons:
short‑term (between 2022 and 2030), medium‑term
(between 2022 and 2040) and long‑term (between 2022
and 2050);
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— performing a first quantitative analysis of transition risks
and opportunities:
– identification of a transition risk when the evolution
of a sub‑metric over intervals is negative (market
shrinkage). The
is calculated
over three periods
(2030, 2040 and 2050) by
multiplying, for a chosen period, the shrinkage rate by
Dassault Systèmes’ revenue (base 2022),
impact of the risk
– identification of a transition opportunity when the
evolution of a sub‑metric over intervals is positive
(market expansion). The impact of the opportunity is
calculated over three periods (2030, 2040 and 2050)
by multiplying, for a chosen period, the growth rate by
Dassault Systèmes’ revenue (base 2022);
— once the variation
linked to transition risks and
opportunities has been estimated, a second level of
quantitative analysis is carried out. This analysis is
based on the assumption that a proportion of companies
positioned in a declining market will be able to reposition
themselves in a transitional, expanding market, and
therefore be less vulnerable. A “player turnover ratio” is
thus determined, it corresponds to the market share that
traditional players will occupy in the new, expanding
market (linked to the transition opportunity). This ratio
makes it possible to weight risks and opportunities, by
reducing the transition risk, and reducing the opportunity
by the same amount. The net opportunity is equal to
the sum of the net transition risk, the net transition
opportunity, and the business opportunity in a transition
market.
Risks on Operations and Upstream Value Chain
As the nature of the risks is very varied, the Company
has adopted a simplified methodology, assigning to its
residual carbon footprint projections an implicit carbon
price that varies over time, corresponding either to the risk
of implementing a carbon tax, or to the potential cost of a
carbon compensation strategy progressively applied to the
Company’s various scopes.
2
2.5.2.1.2.7
Results of the Transition Risk and Opportunity Assessment
In 2023, Dassault Systèmes continued the analysis of transition risks and opportunities started in 2022, by focusing on:
Transition Risks and Opportunities affecting End Markets
Dassault Systèmes assesses the opportunities associated
with the transition as outweighing the risks. This is the
result of analyses carried out for the industries listed above
(see paragraph 2.5.2.1.2.6 “Methodologies to Calculate the
Level of Transition Risks and Opportunities”), which are
already engaged in transforming their business models.
With
its virtual twin solutions on the 3DEXPERIENCE
platform, Dassault Systèmes supports its major customers
as well as new players in integrating the challenges of
climate transition and circularity efforts into the design of
their products and services, particularly in the automotive,
aviation, technology, industrial equipment and construction
industries.
impact of the net risks and
The potential financial
opportunities associated with the Company’s end‑market
transition risk is estimated at an additional net opportunity
of around:
Horizon
2022
2030
2040
2050
Opportunities (net of risks) (in millions of euros)
Reference year
+ 600
+ 1,200
+ 2,000
It should be noted that this valuation is based on revenue
reference for 2022, and does not take into account potential
market share gains that Dassault Systèmes could achieve by
positioning its virtual twin solutions to solve its customers’
environmental problems.
This assessment is to be put into perspective with the
percentage of eligible turnover with the EU Taxonomy, also
aiming to estimate the potential climate opportunities that
Dassault Systèmes’ solutions could address (more details
in paragraphs 1.8 “Environmental, Social and Governance
Performance”
and
Governance Metrics”).
“Environmental, Social
and 2.7
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Transition Risks related to Operations and to Upstream Value Chain
Transition risks related to operations (introduction of the carbon price)
Horizons
2030
2040
2050
Progressive scope of eligibility for the carbon tax
Scopes 1 and 2
Scopes 1, 2 and 3
(business travel &
employees’ commute)
Scopes 1, 2 and 3
120
109
(0.8)
(0.8)
129
117
(12)
(12)
135
123
(117)
(67)
2.5.2.1.3
Dassault Systèmes’ Process for Managing
Climate‑Related Risk
Each high‑level risk identified as possible is notified to the
Sustainability Steering Committee and the Risk Management
Steering Committee. Where necessary, an internal study is
carried out to better assess the potential impact of this risk,
possible mitigation measures and the investments it may
require. The Sustainability Steering Committee then defines,
together with any other relevant internal organizations, the
strategy for ensuring Dassault Systèmes’ resilience. Finally,
the Zero Carbon Team (see paragraph 2.1 “Sustainability
Governance”) ensures that the chosen action plan
is
launched, monitored and analyzed to enable the appropriate
transition plan to be put in place.
2.5.2.1.4
Integration of Climate‑Related Processes
into Dassault Systèmes’ Global Risk
Management System
As presented
in paragraph 2.2 “Social, Societal and
Environmental Risks” the Company’s risk management
approach has been reviewed since 2022 so as to better
integrate ESG
linked to the
consideration of climate change directly into the Company’s
risk identification, assessment and management processes.
In this way, the assessment of scenarios as described above
has directly enabled Dassault Systèmes to evaluate the risk
focused specifically on climate change.
including the one
issues,
In 2023, in line with this work and in anticipation of
the entry into force of the CSRD, scheduled for 2024,
Dassault Systèmes initiated a double materiality assessment,
including
stakeholder
expectations, and confirming the materiality of climate risk
for Dassault Systèmes.
of potential
assessment
an
Carbon Price (in U.S. dollar/tCO2‑eq) (STEPS‑IEA scenario)
Carbon Price (in euros/tCO2eq)
Risk assessment (in millions of euros) over 100% of the eligibility
scope
Risk assessment (in millions of euros) on 50% of Scope 3
(purchased goods & services and capital goods)
As transition costs or the amount of a carbon tax applied to
the software sector are very difficult to estimate, both in
terms of the level of such a tax and its scope, the following
estimates are provided for information only and are not
forecasts.
The transition scenario for carbon cost or tax is that proposed
by the International Energy Agency (IEA) in the STEPS
scenario for European Union countries, corresponding to the
policies adopted or planned by the main governments, i.e.
a carbon price of 120 U.S. dollar/tCO2‑eq in 2030, 129 U.S.
dollar in 2040 and 135 U.S. dollar in 2050, converted
hereafter at the rate of 1 euro equivalent to 1.1 U.S. dollar:
— less than €1 million per year by 2030 using a carbon price
of 109 euros/tCO2‑eq applied to Scopes 1 and 2;
— €12 million per year by 2040 using a carbon price of
117 euros/tCO2‑eq applied to Scopes 1 and 2 and on
business travel and employees’ commute;
— €117 million per year by 2050 using a carbon price of
123 euros/tCO2‑eq applied to Scopes 1, 2 and 3 in their
entirety and taking business projections consistent with
the Company’s latest medium‑term growth plan as well
as with decarbonization efforts begun as part of its SBTi
objectives projected over the more distant horizons 2040
and 2050. It should be noted that the carbon offsetting
of residual emissions planned as part of the Company’s
2040 carbon neutrality strategy
into
account, so that the transition risk simulation exercise
remains relevant. . It should be stressed that all these
assumptions retain a high level of uncertainty.
is not taken
Lastly, these transition risks on operations must be set
against the net transition opportunities affecting end
markets identified and as commented in paragraphs above.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 2.5.2.2
Climate Strategy
in
Dassault Systèmes’ climate strategy consists both
implementing an adaptation plan to optimize
its own
footprint and reduce its operational risks linked to climate
change, and in promoting and developing solutions that can
help accelerate its customers’ transition plans towards a
low‑carbon global economy.
The adaptation and transition plan is thus based on four
main pillars:
— develop, promote and evaluate
the potential of
sustainability enabling solutions, in particular by setting
up strategic partnerships (see customer case examples in
paragraph 2.5.5 “Circular Economy and Resource Use”);
— measure the Company’s environmental footprint (see
paragraph 2.7.1.3 “Environmental, Social, Societal and
Governance Performance Indicators”);
— reduce emissions at source, in line with the Company’s
SBTi trajectory (see paragraphs 2.5.2.4 “Resource Use
and Climate Action Plans” and 2.5.2.3 “Climate Policies”);
— offset residual emissions by 2040 to achieve carbon
“Sustainable
(see paragraph 2.5.2.5.2
neutrality
Operations”).
In order to assess and characterize the environmental value
of its solutions, Dassault Systèmes has defined levers for
each of its three sectors. In addition to demonstrating
Dassault Systèmes’ contribution to mitigating climate
change (see paragraph 2.7.2.2 “Sustainability Levers”),
these levers also provide strategic guidelines for developing
a portfolio of sustainability enabling solutions. They also
make it possible to harmonize the solutions portfolio and
systematically take environmental
into account
when developing a new offering. By 2024, these levers will
be progressively integrated into the value proposition of
the entire Dassault Systèmes portfolio. Dassault Systèmes’
ambition for 2024 is to strengthen the definition of these
levers so that they respond even more closely to the market
challenges of each industry, across all sectors. To implement
Dassault Systèmes’ climate strategy, which is based on
these levers, the Company is stepping up the development
of its Life Cycle Assessment (LCA) solution, systematically
incorporating it into every industrial process supported by
its solutions, and providing new opportunities for strategic
partnerships.
impact
2.5.2.2.1
Developing the LCA Solution
In 2022, Dassault Systèmes developed its own LCA solution.
In 2023, this solution was enhanced with additional
functionalities to meet the new needs expressed by
customers. Thanks to this effort, the application is now
Social, Societal and Environmental Responsibility
Environmental Responsibility
2
available in all the industrial sectors addressed by the
Company, and nine out of twelve industries have integrated
it into their portfolio. In 2024, Dassault Systèmes aims to
deploy this solution to an even wider range of industries,
and to further develop its functionalities. To achieve this,
the Company will be able to capitalize on the feedback from
notable customer projects in 2023 (see paragraph 2.5.2.4.1
“Supporting Customer Transition with regards to Climate
Change”).
2.5.2.2.2
Promoting and Designing New Offers
2.5.2.2.2.1
Manufacturing Industries Sector –
Transportation & Mobility Industry
2
last
industry continues
The Transportation & Mobility
its
transformation by shifting its business model towards
mobility as a service, with cars built to
longer,
maximizing their efficiency during use, and designing
them to be repairable and dismantlable. System modeling
helps customers to simulate and optimize these complex
systems, while tracking key sustainability indicators. Vehicle
lightweighting can bring significant benefits in terms of
reduced energy and raw material consumption, notably
through the optimization of systemic impacts in vehicle
design, which further amplify the direct benefits of weight
reduction.
Investing in the electrification of the transportation and
mobility sector is a priority for Dassault Systèmes’ climate
strategy. In 2023, the BIOVIA brand developed a materials
design offer to enhance the performance of electric
batteries. To facilitate and accelerate the development of
new formulations to increase battery life and energy density,
BIOVIA has developed a tool capable of simulating changes in
battery performance as a function of the choice of materials.
In this way, BIOVIA is helping to speed up the design of more
sustainable energy sources and storage systems.
2.5.2.2.2.2
Life Sciences & Healthcare Sector
The healthcare sector alone accounts for 4% to 5% of global
greenhouse gas emissions. Product logistics in the supply
chain, and travel by healthcare professionals and patients,
including that required for clinical trials, contribute between
10% and 15%. During the processes associated with clinical
trials, travel by patients and healthcare professionals is
largely avoided thanks to MEDIDATA’s offer, which digitizes
the tracking of clinical trials. As some of these trials last
several months and may involve thousands of patients,
the elimination of the need for these commutes through
the secured digital transmission of information represents
a tangible and estimable reduction in greenhouse gas
emissions in this sector.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
Social, Societal and Environmental Responsibility
Environmental Responsibility
2.5.2.2.2.3
Infrastructure & Cities Sector –
Infrastructure, Energy & Materials Industry
With regard to the Infrastructure, Energy & Materials
industry, Dassault Systèmes developed a specific offer in
2023 aimed at reducing the environmental impact of the
steel sector. For example, thanks to the tools provided by
the DELMIA solution, managers of steel milling and rolling
teams can plan their pace of work rates and optimize their
manufacturing processes. This reduces the amount of raw
materials used and the energy required for steel production.
The solution also aims to accelerate the implementation
of
by modeling
production, supply chain and storage logistics. In this way,
Dassault Systèmes is helping to decarbonize a sector that
accounts for almost 7.6% of GHG emissions worldwide.
hydrogen‑friendly
infrastructures
At the same time, Dassault Systèmes is investing heavily
in solutions enabling sustainable development of nuclear
energy. In 2023, the Company has developed a range of
offerings dedicated to players in this sector. By connecting
all internal and external innovation players, from initial
thinking through to design, compliance, operations and
maintenance, its solutions aim to support the entire industry
in accelerating the availability of nuclear infrastructures,
particularly small modular reactors
In 2024,
Dassault Systèmes will be strengthening its portfolio and
solutions to meet the industry’s expectations even more
effectively, and make a greater contribution to accelerating
the energy transition.
(SMRs).
2.5.2.2.2.4
Infrastructure & Cities Sector – Architecture,
Engineering & Construction Industry
To meet the challenges of energy‑efficient building renovation,
Dassault Systèmes has developed an offer based on the
principle of modular construction. This offer provides industry
customers with solutions for designing “ready‑to‑integrate
modules” into a building. The SOLIDWORKS solution enables
modules to be designed in 3D and virtually assembled with
the existing infrastructure. This approach to infrastructure
renovation extends its lifespan, and saves raw materials and
energy. By facilitating collaboration between the various
stakeholders involved in an infrastructure project, the solution
also reduces delivery times, thereby helping to speed up the
energy renovation of buildings.
2.5.2.2.2.5
Other Offers
Dassault Systèmes’ climate strategy is also being deployed
through new business models, by taking on and accelerating
the creation of virtual twins on behalf of the customer, and
delivered with use cases directly relevant to customers, in
their context and with their specific features. An offering
based on this model, dedicated to product sustainability
issues, was launched in 2023. In addition, this innovative
approach to electric battery design enables customers to
focus on research and development, facilitating laboratory
testing and accelerating the manufacture of batteries with
improved environmental performance.
106
2.5.2.2.3
Enriching Strategic Partnerships
In early 2023, IBM and Dassault Systèmes announced their
partnership to accelerate the sustainable transformation of
manufacturing industries through virtual twin experiences.
Dassault Systèmes’ 3DEXPERIENCE platform, with
its
virtual twin experiences, and IBM’s solutions for equipment
maintenance, application performance management and
climate risk management, complement each other to
integrate real‑world operational data into digital mock‑ups.
The solution will give project owners, fleet managers,
operators and maintenance operators the ability to optimize
operations and modernize existing infrastructures, while
accelerating results in terms of sustainable development.
Other strategic partnerships include the one concluded
with Bouygues Construction, aimed at accelerating the
sustainable transformation of the construction sector.
This partnership is part of the builder’s strategy to reduce
its own carbon emissions by 40% by 2030. To this end,
Dassault Systèmes intends to accelerate the development of
its modular construction approach by supporting Bouygues
Construction in its projects.
2.5.2.3
Climate Policies
To successfully implement its strategy and facilitate the
operational implementation of its adaptation and transition
plan, Dassault Systèmes relies on a global environmental
policy, broken down into several levers included in specific
internal policies, of which the four main ones are:
— the “Responsible Digital” policy, covering the entire life
cycle of IT equipment, from purchase to end‑of‑life, and
designed to integrate the main principles of Green IT and
Green Coding. In 2023, Dassault Systèmes continued to
implement worldwide the aspects of this policy relating
to the virtualization of equipment, the extension of its
useful life, the controlled increase in temperature in data
centers to save energy, and the controlled treatment of
electronic waste. This IT Asset Disposal Policy sets out
comprehensive guidelines and procedures governing the
management of asset disposal within Dassault Systèmes
in conjunction with the
(end‑of‑life). This policy,
“Responsible Procurement” policy, also provides for
the consideration of environmental criteria, such as
the carbon “weight” of equipment purchased or the
supplier’s commitment to the Science‑Based Targets
initiative as part of competitive bidding procedures. In
2023, the internal carbon price was used for the first
time to compare bids from selected suppliers for the
supply of laptops and other office equipment. The policy
ensures compliance with environmental regulations by
facilitating the recycling, reuse and responsible disposal
of electronic equipment. It also establishes procedures
for asset tracking, documentation and audits to maintain
compliance with applicable laws and regulations. This
policy serves as a framework to promote transparency,
accountability and sustainability in the management of
IT asset disposal, to protect sensitive information and to
reduce the Company’s environmental impact;
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT — the
“Responsible Real Estate” policy,
covering
criteria for selecting workplaces and optimizing their
footprint during use. This policy is based in particular
on the Site Management Transactional Tool, which
determines on a 100‑point basis the environmental
criteria to be considered when selecting a new
workspace, and on an energy policy integrated with the
ISO 50001 certifications obtained. As an extension of
its commitment to reducing energy consumption, this
global energy policy aims to continuously improve the
Company’s energy management. It applies to all certified
sites, and includes the following commitments:
– deploy in all countries where the Company operates a
monitoring system specifically dedicated to regulatory
developments in the energy field,
– for all new sites, give preference to buildings with
green certification such as BREEAM for Europe, LEED
for the Americas and Asia, or NABERS for Australia,
– optimize energy efficiency, notably by
installing
intelligent sensors, and monitor energy consumption
from the 3DEXPERIENCE platform,
– reduce building energy consumption and greenhouse
gas emissions (see paragraph 2.7 “Environmental,
Social and Governance Metrics”),
– source renewable electricity or purchase low‑carbon
(see paragraph 2.7
Energy Attribute Certificates
“Environmental, Social and Governance Metrics”),
– encourage the purchase of energy‑saving equipment
and services (LEDs, etc.),
– raise
awareness
on
sustainability
and
ISO 50001 among all employees.
In addition to these actions, since October 2022,
Dassault Systèmes has also defined an average
temperature policy for all its offices worldwide. Thus, for
heating and air conditioning:
– the average temperature for heating during working
days is 19.5°C (+/‑ 1°C) (68°F),
– the heating temperature on weekends is set to 11°C
(52°F),
Social, Societal and Environmental Responsibility
Environmental Responsibility
2
– hot water cylinder temperature is set to 55°C (131°F),
– the average air‑conditioning temperature on working
days is 26°C (77°F), with a maximum delta of 8°C from
the outside temperature,
– air conditioning is switched off at weekends,
– lighting is switched off outside office hours (9pm to
6am);
— the “Responsible Mobility” policy, which aims to limit the
environmental impact of business travel. Its local versions
have been updated to emphasize the right balance
between the need to travel, particularly to support
customers, and the need to reduce the environmental
footprint. They give priority to videoconferencing
meetings rather than travel, train travel rather than air
travel, direct flights for air travel, but also low‑emission
vehicle rental and the choice of a hotel close to the
work site. They also encourage the reduction of travel
for internal meetings and ask employees to combine
their trips, limit international flights and the number of
participants;
2
— the
“Responsible Procurement” policy,
covering
Dassault Systèmes’ expectations of its suppliers, and
detailing the Company’s commitments
in terms of
supplier relations. This policy is supplemented by the
publicly accessible Sustainable Charter with Suppliers
towards
(see paragraph 2.6.1.1.3
Suppliers”), and provides, in particular, for the systematic
integration of ESG criteria in the choice of suppliers, as
well as a strong incentive to join the SBTi initiative.
“Responsibility
Each of these policies provides the framework for dedicated
in
action plans, the main achievements are detailed
paragraph 2.5.2.4 “Resource Use and Climate Action Plans”.
In addition to these internal policies, which form part of a
global environmental policy, Dassault Systèmes has also
published an Environmental Statement, setting out the
company’s key principles.
In 2024, the Company plans to review these policies and
the Environmental Statement, and to publish a summary of
them.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
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Environmental Responsibility
2.5.2.4
Resource Use and Climate Action Plans
2.5.2.4.1.2
Manufacturing Industries Sector –
High‑Tech Industry
The growing challenges posed by climate change have led
Dassault Systèmes to integrate potential impacts as key
elements of its development strategy. Accordingly, the
main internal functions and the Sustainable Development
department are deploying targeted action plans aimed
both at providing customers with
innovative solutions
adapted to these new challenges, and at strengthening
Dassault Systèmes’ resilience in the face of major climatic
events. The priority fields of action, detailed below, are:
— supporting customers’ transition;
— mastering the impact of digital technology;
— increasing the energy efficiency of buildings;
— optimizing mobility;
— promoting responsible procurement;
— fostering sustainable innovation, raising awareness and
providing training.
2.5.2.4.1
Supporting Customer Transition with
regards to Climate Change
implement
its customers throughout the year
its climate strategy, Dassault Systèmes
To
in their
supported
the contribution
transition. The effort
of Dassault Systèmes’ solutions
to climate change
mitigation (see paragraph 2.8.3 “EU Taxonomy Indicators
Methodology”) has made it possible to demonstrate the
environmental impact of customers’ use of 3DEXPERIENCE.
to quantify
2.5.2.4.1.1
Manufacturing Industries Sector –
Transportation & Mobility Industry
Once again this year, Dassault Systèmes has supported
numerous automotive customers in their transition. Among
the most representative customer projects was one with an
American car manufacturer. The implementation of CATIA
solutions at this customer’s site brought significant benefits
in terms of fuel economy, thanks to systemic impacts in
vehicle design that amplify the direct benefits of vehicle
weight reduction. Dassault Systèmes’ collaborative solutions
accelerated the achievement of the electric vehicle program,
enabling this category of vehicle to be made available on
the market more quickly. This customer case demonstrates
that the Company’s solutions not only improve operations
during the design, engineering and production phases, but
also secure and accelerate the transition of the customer’s
offer to more virtuous products (see paragraph 2.7.2.2
“Sustainability Levers ”).
In 2023, Dassault Systèmes has teamed up with an
engineering school to develop a racing car using the
LCA solution. Eco‑design is at the heart of the students’
project, as they aim to help reduce the environmental
impact of motorsports. This example
illustrates how
Dassault Systèmes’ solutions enable customers to select
less carbon‑intensive alternative materials and optimize
product design from an environmental perspective (see
paragraph 2.7.2.2 “Sustainability Levers ”).
108
This year, Dassault Systèmes took part in the development
of a robot for building automated masonry systems for a
customer specializing in carbon‑sequestering constructions.
Thanks to modeling with SOLIDWORKS, development
of the robot and the launch of the carbon‑sequestering
walls were accelerated by two years. This demonstrates
Dassault Systèmes’ ability to support the creation of
new carbon capture solutions
(see paragraph 2.7.2.2
“Sustainability Levers ”).
2.5.2.4.1.3
Life Sciences & Healthcare Sector
To support the transformation of the healthcare sector,
Dassault Systèmes has developed a digital MEDIDATA
solution for decentralized clinical trials, which was particularly
critical during the COVID‑19 pandemic to avoid the risk
of increased contamination linked to patient travel. By
supporting numerous American healthcare organizations,
the Company is helping to reduce the sector’s GHG emissions
by minimizing the number of on‑site visits and patient
travel. This case study demonstrates the Company’s ability
to reduce the carbon footprint of a process representing
significant emissions in the sector (see paragraph 2.7.2.2
“Sustainability Levers”).
2.5.2.4.1.4
Infrastructure & Cities Sector –
Infrastructure, Energy & Materials Industry
Dassault Systèmes’ investments in decarbonizing the steel
sector (see paragraph 2.5.2.2 “Climate Strategy”) bore fruit
in 2023, as demonstrated by the collaborations launched
with major players in the sector. Among the decarbonization
priorities identified with these players is the optimization
of production methods. The implementation of the DELMIA
solution and its functionalities for planning steel milling
and rolling rates, for example, has enabled one of Dassault
Systèmes’ customers to reduce scrap significantly. Here,
the Company demonstrates its ability to optimize the
energy consumption of a production line, and to reduce the
amount of materials and natural resources consumed in steel
production. (see paragraph 2.7.2.2 “Sustainability Levers”).
2.5.2.4.1.5
Infrastructure & Cities Sector –
Cities & Public Services Industry
Dassault Systèmes worked with a company specializing in
building construction and interior design to optimize comfort
in the event of extreme summer outdoor temperatures.
SIMULIA technology, by analyzing the temperature inside
homes built by the company , enabled the company to
simulate multiple scenarios. Thanks to the creation of a
3D model of the upper floor of one of the buildings, the
performance of insulation, ventilation, sun blinds and the
cooling system on the floors could be tested and optimized
to reduce the buildings’ energy consumption. This case
study demonstrates how Dassault Systèmes contributes
to optimizing the energy consumption of buildings (see
paragraph 2.7.2.2 “Sustainability Levers”).
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 2.5.2.4.2
Mastering the Impact of Digital
Technology
2.5.2.4.2.1
Optimizing Software Development
Operations
In addition to deploying an awareness‑raising initiative
on sustainability issues in the digital sector, which takes
the form of training on the criticality of sustainability
and the associated challenges, R&D teams have launched
the evaluation of a training course on good development
practices in C/C++ (optimization techniques, identification
of software bottlenecks, comparison of data structure
efficiency, etc.) to optimize software energy consumption by
improving its performance.
They also worked on estimating the environmental footprint
of the server part of a 3DEXPERIENCE platform customer on
the cloud, as well as that of the development environment
of the 3DEXPERIENCE platform itself. Finally, they measured
the power consumption of a certified customer workstation,
in operation and at rest, to get a more precise idea of the
impact of using the 3DEXPERIENCE platform on the client
workstation.
% of Renewable energy
% of Coverage on Renewable energy
Social, Societal and Environmental Responsibility
Environmental Responsibility
2
2.5.2.4.2.2
Improving Energy Efficiency of
Data Centers hosted with Data Center
Colocation Providers
In 2023, Dassault Systèmes continued to assess the energy
efficiency of its data centers, both owned and hosted by
colocation providers, with the aim of implementing a remote
monitoring of environmental indicators at its infrastructure
providers and thus promoting a more responsible digital
business, including in its value chain.
The Company is also continuing to collect the Power Usage
Effectiveness (PUE) data for its own and hosted data centers,
and hopes to be able to report a weighted average PUE for
its cloud activities in 2025, despite the limitations of this
indicator.
Finally, Dassault Systèmes has continued to work with its data
center colocation providers to promote the use of renewable
energy. In 2023, the expansion of the coverage from 78% in
2022 to 100% of its data centers (hosted or not) mechanically
lowers the rate of renewable energy reported in 2022 on a
smaller scope. The Company’s objective of using directly and
indirectly at least 85% of renewable energy is maintained.
Of the Company’s six largest data centers, whether hosted or
not, five are powered by renewable energy.
2023
79%
100%
2022
2021
2020
95.4%
78%
94.0%
72%
94.2%
71%
2
To date, 100% of the data centers serving the Company’s customers using 3DEXPERIENCE cloud solutions are now powered
exclusively by renewable energy.
2.5.2.4.2.3
Improving Energy Efficiency of Computer
Workstations
Dassault Systèmes continues to regularly collect data on the
energy footprint of various workstations and environments,
notably on the 3DS Paris Campus. The aim is to improve the
overall energy consumption of IT equipment by identifying
areas of over‑consumption.
In addition, Dassault Systèmes now includes an analysis of
the energy consumption of each piece of office equipment in
its public tenders.
In 2023, Dassault Systèmes tested the implementation of
a Virtual Desktop Infrastructure (VDI) desktop virtualization
solution on a range of 1,000 employees in India. This
including
architecture offers a number of advantages,
reducing environmental
the
efficiency and sustainability of IT operations. Expected
improvements include:
impact while
improving
— reduced energy consumption: The servers used in the VDI
deployment have been optimized for energy efficiency,
reducing energy consumption per user compared with
the use of individual desktops;
— extended hardware lifespan: Workstations tend to be
replaced more frequently than servers in data centers. By
deploying this solution, Dassault Systèmes anticipates an
extension of hardware lifespan, which in turn reduces the
amount of electronic waste;
— consolidated
and
IT waste:
reduced
resources
(see paragraph 2.5.5.4.2 “Optimizing
the Digital
Lifecycle” and 2.5.5.4.5 “Promoting Repairability and
Reconditioned Products” for more
information on
responsible digital actions in favor of circularity.
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2.5.2.4.3
Increasing Energy Efficiency of Buildings
the exception of
With
the premises owned by
Dassault Systèmes Solutions Lab Private Ltd, located in
Pune, India (3DS Pune Campus), and the Paso Robles site in
the United States, the Company does not own the offices it
occupies, nor does its own or lease any land or buildings.
Since 2021, the 3DS Pune Campus has expanded with the
construction of two of the four sustainably designed towers
planned by 2029. These buildings have achieved Indian
Green Building Council (IGBC) certification and are equipped
with 440 solar panels with a maximum rated output of
240kW, and 25 electric charging stations. They have also
been fitted with LEDs and motion detectors to reduce energy
consumption. Last but not least, shuttle buses are available
to employees on the 3DS Pune Campus on a daily basis to
encourage the use of public transport and reduce the carbon
footprint of employee’s commute.
its SBTi commitment,
the Real Estate
As part of
department has set up an energy management system with
ISO 50001 certification. Each year, the scope of certified sites is
extended. In 2023, 13 additional sites were ISO 50001 certified,
for a total of 53 sites.
The certification process for all these sites, the general
energy management methodology and the monitoring tool
for the Company’s Energy Management System are fully
supported by the 3DEXPERIENCE platform. Centralizing the
monitoring, analysis and management of Dassault Systèmes’
energy consumption in this way encourages the emergence of
relevant action plans, and feeds its continuous improvement
approach. At the same time, Dassault Systèmes has created
a global digital collaborative space to improve exchanges and
encourage the sharing of best practices around the Energy
Management System.
In 2023, the Company has equipped 51 sites with connected
meters to control the
level and sources of electricity
consumption in real time. By December 31, 2023, in line with
the scope of ISO 50001 certification, Dassault Systèmes had
equipped all its sites in Europe, 14 in the Americas and 3 in
India.
In 2023, energy consumption at the main sites will total
63,991 MWh, of which 90.52% will be electricity. Moreover,
49 sites use
low‑carbon electricity, either for direct
consumption or through the purchase of certificates from
municipal waste‑to‑energy plants in the United States and
India. The production of low‑carbon electricity corresponding
to this consumption is certified in accordance with the
American Renewable Energy Certificate (REC) standard,
and is documented by the issue of electronic certificates,
described in the legal bases of the Center for Resource
Solutions. Certificates acquired in addition to consumption
all meet the new RE100 criterion for the first year, which
guarantees their affiliation with a green production plant
that is less than 15 years old. Dassault Systèmes is thus
making an even more explicit contribution to accelerating
the transition of the global power grid. Overall, 89% of
electricity consumption is decarbonized, representing 84%
of total energy consumption. In 2023, Dassault Systèmes
has launched a study aimed at setting up Power Purchase
Agreements (PPA) for France and possibly India, to cover
part of its electricity consumption while encouraging the
emergence of new renewable energy production resources.
Decisions relating to this study will be taken in 2024, given
the small volumes that could potentially be purchased via
PPAs.
2.5.2.4.4
Optimizing Mobility
Dassault Systèmes continues to reduce the carbon footprint
of its business travel. Local mobility policies emphasize the
right balance between the need to travel and the reduction
of the environmental footprint. They give priority to
videoconferencing meetings over business trips, train travel
over air travel, direct flights for air travel, as well as the rental
of low‑emission vehicles and the choice of a hotel close to
the work site. They also encourage the reduction of travel for
internal meetings and ask employees to combine their trips,
limit international flights and the number of participants.
The control and monitoring of travel is strengthened by
the roll‑out in early 2023 of an internal travel authorization
tool. This tool enables managers to consider the relevance,
cost and carbon footprint of air travel when approving
trips. All international travel is now subject to approval by
a member of the Dassault Systèmes Executive Committee.
Communication campaigns on the Company’s “Travel
Smarter, Travel Greener” policy help to raise awareness and
educate employees on the best practices to adopt when
traveling, in order to reduce greenhouse gas emissions.
Dassault Systèmes has also continued to deploy electric
charging stations at the Company’s sites to encourage
employees to acquire electric cars, which are less polluting to
run than their internal combustion equivalents.
3DS Paris Campus now provides its employees with free bicycle
maintenance kiosks to encourage environmentally‑friendly
mobility.
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Optimizing GHG emissions linked to employees’ commute
also involves maintaining the flexible working program. Set
up in the wake of the COVID‑19 pandemic, this program
enables employees to work remotely for up to two days a
week. As a result, carbon emissions of employees using their
cars for commuting to the site are reduced accordingly.
2.5.2.4.5
Promoting Responsible Procurement
The Company has implemented a proactive approach to
decarbonize its value chain, via the Science‑Based Targets
initiative. This includes a target relating to the purchase of
goods and services. The Procurement & Travel department
considers it essential to work with an ecosystem of suppliers
committed to reduce their emissions based on science, and at
least as ambitious as the trajectory set by the SBTi initiative.
Joining the SBTi initiative necessarily implies estimating its
greenhouse gas emissions each year, and setting ambitious
targets for reducing its carbon footprint. In this way, the
Company’s aim is to interact with an ecosystem that is itself
committed to a monitored and communicated transition
plan towards a more carbon‑free economy, with a horizon
of more than five years. The validation of its objectives has
given Dassault Systèmes the opportunity to raise awareness
of environmental issues among its suppliers, using a variety
of communication channels. Buyers address decarbonization
issues during public tenders and business reviews. Numerous
SBTi webinars have also been organized with suppliers over
the past two years to help them understand the approach
and the methodology for submitting targets.
By the end of 2023, 37% of suppliers (in terms of CO2
emissions) had validated (science‑based) targets for reducing
their carbon footprint, and 8% had committed to having
them validated within 24 months.
2.5.2.4.6
Fostering Sustainable Innovation, raising
Awareness and providing Training
The Sustainable Development department has strengthened
its communication and broadened its audience within the
Company by regularly updating dashboards accessible to all,
which notably facilitate access to information concerning the
progress of its ESG commitment and initiatives. At the end
of each month, Dassault Systèmes also publishes a Monthly
Sustainability Highlights report, which includes all internal
and external information relating to sustainability or climate
action, as well as a weekly update for employees on the
internal community dedicated to this subject.
To raise awareness of environmental and climate issues,
the Company has fostered employee training through three
initiatives:
— in 2021,
in partnership with AXA Climate School,
Dassault Systèmes has created a training course
specifically dedicated to sustainable development issues.
This course, called Sustainability for SwYmers, has been
integrated into the 3DEXPERIENCE University, accessible
online to all employees. Eight hours of content, covering
a variety of topics such as climate change, biodiversity
and the depletion of planetary resources, are offered.
The course provides practical tools to help employees and
companies understand climate change and take action to
reduce their professional and personal impact. To mark
the launch of this training course, the Company planted
a tree for every employee who completed a selection of
modules. In 2022, more than 2,000 employees will have
taken all or part of this training, and almost 1,800 more
in 2023. In April 2023, Dassault Systèmes added a new
module dedicated to energy sufficiency. This training
provides all employees with the basic notions of energy
sufficiency, as well as the levers to achieve it;
team and
— in honor of Earth Day, Dassault Systèmes dedicated
the month of April to raising its employees’ awareness
of sustainability. Under the impetus of the internal
communications
in collaboration with
the Green Teams (see paragraph 2.1 “Sustainability
Governance”), Dassault Systèmes organized 15 different
challenges involving 61 offices worldwide. As a result,
400 employees saved over 40 tCO2‑eq thanks to the
various challenges (meat‑free month, car‑free month,
cleaning days, etc.);
— during this same month, the Company also organized a
series of sustainability conferences on implementing
sustainable change, to inspire employees and inform
them about the current global situation,
learning
methods and vectors for climate action, both internally
and externally.
2.5.2.5
Climate Objectives
2.5.2.5.1
Solutions to reduce Climate Impact
To demonstrate its commitment to climate and accelerate the
development of sustainability enabling solutions, Dassault
Systèmes has set a number of objectives to reduce its
climate impact. For example, the Company has committed to
monitor, by 2027, an objective of the percentage of Turnover
eligible for the EU Taxonomy of 70%. Dassault Systèmes has
also defined a 3DS Acceptable Use Policy under which the
Company does not engage with new customers falling under
certain criteria nor develop dedicated products or services
in four market segments. These market segments are coal
for energy purposes, tobacco (including the production of
electronic cigarettes), “universally prohibited” weapons,
and oil and gas where no public commitment to reduce
carbon emissions has been made (see also paragraph 2.6.3
“Committing to Ensure Respect for Human Rights and
Fundamental Freedoms”).
2
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 3DEXPERIENCE platform and are destined to generate
carbon credits. This approach has the advantage of
helping to develop promising customers and is in line
with the Company’s values, while indirectly helping
to assess the extent to which Dassault Systèmes’
solutions can contribute to avoiding greenhouse gas
emissions. By 2023, an initial list of young companies
with which Dassault Systèmes would like to collaborate
has therefore been drawn up. Objective, weighted
criteria have also been defined, and serve as a guideline
in the evaluation of these potential partners. These
include information on the nature of their activity and
its innovative character, the co‑benefits they bring to
civil society and the environment in the broadest sense
(biodiversity, waste, etc.), their level of maturity, their
level of certification, etc. To date, dialogue has been
established with almost 50% of these startups. On a
more operational level, Dassault Systèmes intends, in
addition to the carbon offsetting already carried out
for major events, to offset its Scopes 1 & 2 emissions
by 2030 at the latest, then progressively extend the
mechanism to business travel, employees’ commute,
procurement and waste, in order to achieve carbon
neutrality for its operations by 2040 at the latest.
2
Social, Societal and Environmental Responsibility
Environmental Responsibility
2.5.2.5.2
Sustainable Operations
As part of
strategy,
Dassault Systèmes has defined proactive objectives for the
management of climate impacts, risks and opportunities:
sustainable development
its
— science‑based targets for managing greenhouse gas
emissions reductions and associated risks, validated by
the Science‑Based Targets initiative in 2021, then in 2023
on a broader scope. The latter now takes into account the
latest major acquisitions and includes methodological
improvements:
– an emissions reduction target for Scopes 1 &
2 operations of 35% by 2027,
– a target of reducing emissions from employees’
commute and business travel by 20% by 2027,
– a 2025 target to convince
its main suppliers,
representing 50% by weight of emissions, to commit
to a science‑based pathway for reducing their
greenhouse gas emissions;
— a goal of carbon neutrality completes these commitments
by 2040: to achieve it, Dassault Systèmes’ strategy is
to give priority to startups with a mission that use the
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To achieve these objectives, Dassault Systèmes intends,
from 2024, to undertake the following actions as part of its
responsible policies:
— digital: continue and extend the collection of operational
data from hosting partners, particularly with regard
to energy performance (PUE) and water management,
reach 100% ARM (Advanced RISC machine) processors
on the 3DEXPERIENCE cloud, and continue research to
define the extent to which the best practices identified
could be integrated into the software development cycle;
— real estate management: pursue ISO 50001 certification
and the implementation of on‑site sensors to optimize
energy consumption, and maintain a coverage rate of at
least 90% for low‑carbon electricity consumption;
— mobility: continue to promote soft mobility, notably by
implementing updated local policies;
— supply chain: continue providing training to suppliers
through a series of webinars dedicated to the SBTi
approach, to help them reduce their emissions;
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Environmental Responsibility
— training and awareness‑raising for employees: amplify
training in climate issues to help employees apply
this knowledge in their roles and ecosystems, and by
involving even more employees in its internal initiatives.
In particular, Dassault Systèmes intends to continue
training key IT managers to implement more sustainable,
climate‑friendly IT (Green IT).
further
formalize
To
the environmental management
system already in place, and based on its global policies,
Dassault Systèmes also plans to study ISO 14001 certification
from 2024, for possible implementation from 2025.
2.5.2.6
Climate Performance Indicators
2.5.2.6.1
Estimation of avoidable Emissions
through the Use of the 3DEXPERIENCE
Platform
While global warming entails many risks, it also presents
opportunities. For Dassault Systèmes, the
lies
in its ability to support its customers in the significant
transformation of demand, business models and operations
transition. This
imposed by
transformation requires accelerated deployment of digital
technologies and solutions, such as virtual twins and product
lifecycle data intelligence, to support more sustainable
innovations.
the necessary climate
latter
The indicators chosen to measure climate opportunities are
standardized indicators, allowing comparability with other
companies in the sector, based on scientific data and audited:
— the percentage of eligible turnover to EU Taxonomy;
— the percentage of aligned turnover with the EU Taxonomy
(more details in paragraphs 1.8 “Environmental, Social
and Governance Performance” and 2.7 “Environmental,
Social and Governance Metrics”.
At this stage, only the percentage of eligible turnover
has been set as a target for 2027. (see paragraph 2.5.2.5.1
“Solutions to reduce Climate Impact”).
Use case assessments of the reduction in greenhouse
gas emissions resulting from the implementation of the
3DEXPERIENCE platform are described in paragraph 2.5.2.4.1
“Supporting Customer Transition with regards to Climate
Change”).
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2.5.2.6.2
Estimation of Greenhouse Gas Emissions
Dassault Systèmes uses the Greenhouse Gas Protocol to
calculate its carbon footprint. This assessment of greenhouse
gas emissions includes:
— Scope 1 direct emissions,
linked to natural gas,
refrigerant use, generator fuel and company cars;
— Scope 2
indirect emissions resulting from energy
consumption, linked to electricity and the district heating
and cooling network;
— other indirect emissions (corresponding to Scope 3)
linked to the following elements:
– business travel required for relations with customers
and partners,
– employees’ commute,
– purchases of goods and services, consisting mainly
intellectual services, subcontracting,
insurance services, bank
of fees and
communication services,
charges and business supplies,
– capital
goods, mainly
computers,
audiovisual
equipment, servers and data storage equipment,
– recycling of ordinary, electrical and electronic waste,
– emissions from “upstream energy”, referred to in the
Greenhouse Gas Protocol as “Fuel & Energy related
activities”.
These calculations use energy or monetary emission factors
and various estimates (e.g. distances, headcount, average
consumption). The published estimate should therefore be
considered as an order of magnitude. Emissions relating to
the use of Dassault Systèmes solutions by customers are also
estimated, but are subject to a greater degree of uncertainty
as they incorporate several levels of approximation, often
depending on the customer (such as the use of renewable
electricity, the time the solution is used, the type of
infrastructure, etc.).
In 2022, Dassault Systèmes undertook a complete overhaul
of its environmental reporting to improve its accuracy,
completeness and reliability:
— greater precision: revision of the method for estimating
greenhouse gas emissions from employees’ commute,
extension of e‑waste
introduction of
more granular and precise tracking of purchases, and
restatement of the effects of exchange rate volatility and
inflation when using monetary emissions factors;
reporting,
— greater comprehensiveness: additional
sources of
emissions are taken into account, the carbon footprint
estimate is extended to all buildings initially outside the
scope, and an initiative is launched to enable reporting on
water consumption;
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT — greater reliability: launch of the development of an
intended
environmental data
to become the
information system supporting the
consolidation of the Company’s carbon footprint and the
indicators selected in preparation for the CSRD, as well as
the analysis of environmental performance.
consolidation
tool,
In 2023, Dassault Systèmes continued its efforts by stepping
up the development of this internal tool in order to promote
the automation of ESG reporting, improve the quality and
availability of information communicated to stakeholders
Social, Societal and Environmental Responsibility
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2
and assist with environmental communication. In 2024,
the Company intends to pursue these developments to
meet the new sustainability reporting challenges linked to
the first year of CSRD implementation and the publication
of new indicators defined in the ESRS, notably relating to
water consumption (see paragraph 2.5.3 “Water and Marine
Resources”).
At December 31, 2023, Dassault Systèmes’ annual
greenhouse gas emissions (excluding emissions relating to
the use of solutions sold) are estimated as follows:
2
The environmental indicators are detailed in paragraph 2.7
“Environmental, Social and Governance Metrics” and
cover an average of 98% of the scope. Dassault Systèmes
obtains limited assurance on these indicators from the
Independent Third Party Organization and Auditors,
PricewaterhouseCoopers Audit.
In 2023, the carbon footprint of Scopes 1, 2 and 3 amounted
to 186,894 tCO2‑eq, down 19% on 2019 and up 6% on
2022. This trend is both in line with the growth in average
headcount and the result of actions undertaken over several
years to reduce GHG emissions.
More specifically, Dassault Systèmes’ Scopes 1 and 2
emissions are 71% lower than in 2019, the base year for SBTi
targets, and 6% lower than in 2022. This improvement is
mainly the result of energy‑saving efforts at major sites and
more optimized use of the company vehicle fleet, in line with
the Company’s “Responsible Mobility” policy. Renewable
energy supply reaches 84% in 2023, stable compared to
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2022. In addition, as part of its goal of carbon neutrality
by 2040, Dassault Systèmes is acquiring Energy Attribute
Certificates to reduce residual emissions linked to electricity
consumed by its American and Indian sites. Since 2023,
these certificates have carried the RE100 label to guarantee
their quality.
Scope 3 emissions for “business travel and employees’
commute” have fallen by 52% compared to 2019 and
remained stable compared to 2022, fully offsetting the
Company’s headcount increase (+5.7%), and demonstrating
the control of business travel.
in
The percentage of
emissions, with
suppliers,
science‑based targets reached 37% by the end of 2023,
compared with 26% in 2022, thanks in particular to the
awareness‑raising actions carried out by Dassault Systèmes’
Procurement teams, and contributing to an acceleration in
the implementation of decarbonization strategies within the
Company’s value chain.
Despite growth in headcount and activity, Dassault Systèmes
remains well positioned to meet its SBTi targets for Scopes 1,
2 and 3 emissions by 2025 and 2027. The lead recorded at
the end of 2023 is mainly due to the rapid implementation
of ambitious energy‑saving and travel management policies,
which should be mechanically reduced as the company grows.
2.5.2.6.3
Other Climate Metrics
To optimize its decarbonization strategy, Dassault Systèmes supplements its greenhouse gas emissions indicators with
climate performance indicators:
Other climate indicators
2023
2022
Carbon intensity in millions of euros of Revenue IFRS (tCO2‑eq/M€)
Carbon intensity per employee (tCO2‑eq/employee) (1)
Energy consumption (MWh)
Number of EACs acquired during the year
Share of renewable energy (2)
Share of renewable electricity
Percentage of ISO 50001‑certified sites
Percentage of workforce covered by ISO 50001 certified sites
Share of suppliers by weight of GHG emissions committed to a science‑based reduction approach
(SBTi target)
Quantity of carbon credits acquired during the year (tCO2‑eq)
31.4
8.1
71,218
31,102
84%
89%
66.7%
65.3%
37%
673
31.2
8.2
82,766
37,000
84%
90%
44%
51%
26%
671
(1) Carbon intensity per employee is estimated on the basis of an average annual headcount. For 2022 and 2023, it is 21,580 and 23,199 respectively.
(2) Covers only sites with more than 50 employees. The calculation methodology will be reviewed in 2024 as part of the CSRD sustainability reporting.
Carbon intensity, in millions of euros of Revenue IFRS,
is practically stable at 31.4 versus 31.2 in 2022, but, at
constant exchange rates, shows an improvement of 2.4%;
The carbon intensity per employee for Scopes 1,2 and
3 shows a net reduction of 40% compared with 2019,
and of 1% compared with 2022, from 8.2 to 8.1 tCO2‑eq/
employee. This improvement is mainly driven by Scope 1
(‑13% compared with 2022), and especially the intensity of
the company car item (‑23%). Scope 2 carbon intensity is
down 10% on 2022. Transport intensity (business travel and
employees’ commute) is also down 7% on 2022, reflecting
the impact of the Company’s “Responsible Mobility” policy.
Taken together, these reductions more than offset the rise
in carbon intensity for purchases and investments, which
increased by a controlled 1%.
Energy consumption stands at 71,218 MWh, a decrease of
14% compared with 2022, with a quasi‑stable renewable
electricity coverage rate of 89%. When direct access to
renewable electricity contracts is not possible for each site,
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notably in India and the United States, Dassault Systèmes
purchases RE100 energy attribute certificates. These
certificates amounted to 31,102 MWh, representing a 16%
reduction compared with 2022. This improvement in energy
efficiency is due in part to the ongoing program to deploy a
certified management system for energy management. As a
result, 65.3% of the Company’s workforce now works at ISO
50001‑certified sites, up 14 points on 2022.
teams and
the procurement
Driven by
the many
awareness‑raising sessions they have dedicated to their
ecosystem, the proportion of suppliers committed to a
science‑based approach to reducing their greenhouse gas
emissions has also risen to 37% (+11 points), confirming
the desired trend for achieving the SBTi target related to
procurement of goods, services, and capital goods by 2025.
The quantity of carbon credits acquired in 2023 as part of
the voluntary carbon offsetting of major Dassault Systèmes
events remains stable at 673 tCO2‑eq (671 in 2022).
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2.5.2.6.4
Internal Carbon Price
As part of its climate strategy, Dassault Systèmes has set an
internal carbon price (ICP) of 100 euros per ton from 2023,
the aim of which is to include the cost of the CO2 externality
in the decision‑making and performance monitoring of its
various functions by encouraging them to take improvement
actions, particularly in terms of energy efficiency, and
independently of the risk of the introduction of a regulatory
carbon tax within the European Union. Dassault Systèmes
believes that this ICP will also enable it to differentiate
investments in new equipment or real‑estate sites in the
context of public tenders in favor of low‑carbon choices, and
will help secure and even exceed its GHG reduction targets as
submitted to SBTi.
2.5.3
Water and Marine Resources
2
2.5.3.1
Fresh Water
Dassault Systèmes has included water stress risks for its
own operations in its climate risk assessment. These mainly
correspond to the risk of drought as defined by the TCFD.
Most climate change scenarios predict situations of water
stress in most geographical areas.
Dassault Systèmes also anticipates potential risks associated
with the use of data centers that could be affected by water
stress. Given the lifespan of a data center contract (six to
ten years, with a two‑year period to allow for a secure
transition), Dassault Systèmes will monitor the evolution
of the water stress situation, in order to be in a position to
change site if necessary, and keep a close eye on any water
recycling technology, as well as the water efficiency of
cooling systems in its own or colocated data centers. The
climate risk assessment has enabled the Company to clearly
identify and characterize this issue. As far as office space is
concerned, most leases allow for vacancy every three to five
years on average, so it’s easily possible to change location for
reasons of water stress.
Although water management did not emerge as material for
Dassault Systèmes’ operations during its double materiality
assessment carried out as part of the CSRD implementation,
it is material for the digital industry in the broadest sense,
particularly for the operation of data centers. This is why
the Company, as it committed to do in 2022, is publishing
in 2023 an estimate of its water consumption linked to its
internal operations in paragraph 2.7.1.3 “Environmental,
Social, Societal and Governance Performance Indicators ”
and will continue its efforts to make these estimates more
reliable. It will also ask its main suppliers about their water
conservation policies, particularly in the context of data
center operations.
Indeed, service providers and specialized external operators
do not generally provide information on this resource, nor
do the lessors the Company uses, as Dassault Systèmes
usually rents its workspaces. As a result, Dassault Systèmes
estimates its water consumption for operations (toilets,
showers, catering, landscaping, etc.) and for cooling its own
data centers as follows:
— if the actual data is available on time, consumption is
reported directly;
— if actual data is not available, or available too late,
estimated consumption is reported.
At the same time,
in 2023, Dassault Systèmes has
relaunched discussions with owners to collect data linked
to water consumption, and asked its internal network to
identify possible areas for improvement. For data centers,
water management efficiency and the technology used have
been included in the specifications of public tenders since
2022. Cooling technologies are evolving rapidly, and new
standards will emerge to reduce water consumption in data
centers. These will be taken into account in the selection
process for future data centers.
At the 3DS Pune Campus in India, wastewater is treated
and reused to water green spaces. Water management
certification
is also under consideration. At the 3DS
Boston Campus in the United States, an existing 757 m³
underground storage tank has been converted to capture
runoff water for irrigation. Rainwater falls onto paved
surfaces and is cleaned by a water treatment system. It
is then filtered by a six‑foot‑deep retention basin before
irrigating the surrounding
landscape. Drought‑resistant
native vegetation further reduces the need for irrigation.
Understanding the dynamics of hydraulic phenomena in
order to better anticipate events linked to climate change
and thus protect infrastructures and people is a major
challenge. This is why La Fondation Dassault Systèmes has
supported the Water Lab at the BMS College of Engineering
in Bengaluru (India) since its creation, through donations
and skills sponsorship
from volunteer employees at
Dassault Systèmes. Two new programs have been launched
in 2023:
— the development of scientific methodologies and the
training of students in the creation of 3D predictive
simulations of extreme situations (flooding, etc.);
— the development of an
intelligent robotic fish for
aquaculture to monitor early indicators of disease and
protect farms from infection.
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2.5.3.2
Marine Resources
No Dassault Systèmes site is located in a protected coastal
zone and has any direct impact on the marine resources of
the countries in which the Company operates.
Since 2019, La Fondation Dassault Systèmes has been
developing the Mission Océan project, which supports the
preservation of oceans and marine resources, considered to
play a key role in climate change. This project aims to develop
scientific and technical culture educational content in various
disciplines, such as mathematics and physics, involved in
ocean preservation. Missions Océan also aims to develop
skills and interests for the jobs of the future, centered on
preserving the oceans and the environment. The project is
co‑developed with key partners such as the French Ministry
of Education and Youth, and the French Research Institute
for Exploitation of the Sea (IFREMER) (see paragraph
2.4.4.1.2 “Educating Youth on Environmental Issues”).
As part of the Company’s support for innovative startups,
the 3DEXPERIENCE Lab will accompany disruptive
innovations committed to protecting water and the oceans
through partnerships with incubators around the world, such
as OceanHub Africa.
The 3DEXPERIENCE Lab has also supported other initiatives
to protect marine environments:
— Clean Sea Solutions in Norway, which has developed
an autonomous drone equipped with mapping sensors
capable of removing plastic waste from harbors, canals
and estuaries at or just below the surface of the water;
— Liftlabs, a local program to protect whales in the lobster
fishery (see paragraph 2.4.3.2 “Facilitating Innovation
and Collective Intelligence”).
In 2023, Dassault Systèmes pursued discussions with
a company that builds, deploys and manages fleets of
wave‑powered, deep‑sea upwelling pumps designed to capture
carbon by accelerating phytoplankton photosynthesis while
promoting marine life, with a view to assessing the project’s
relevance to the goal of achieving carbon neutrality.
2.5.4
Biodiversity and Ecosystems
Dassault Systèmes is sensitive to environmental protection
issues, and is keen to ensure that its activities have limited
direct or
impact on biodiversity and resource
management. Indeed, the software industry is both:
indirect
— a human resources industry: the Company has numerous
sites and ensures that, when it opens a new site,
biodiversity is not or has not been significantly impacted
by the construction of buildings that the Company
leases, or in very rare cases builds;
— an industry with low CO2 emissions, but with a sense
of responsibility. Because of the energy required to
manufacture and use IT equipment, Dassault Systèmes
examines the commitment to biodiversity of its main
suppliers, and carefully assesses the carbon footprint of
its equipment. The energy consumption, if it is based
on non‑renewable energy, has a direct impact on global
warming and ocean acidification, and consequently on
terrestrial and marine biodiversity;
— an industry that produces electronic waste: mainly
disposed of by
incineration, end‑of‑life
electronic equipment can have an additional impact on
the air and soil, and therefore on biodiversity around
landfill sites.
landfill and
This is why Dassault Systèmes’ location choices are guided
by a constant desire to foster synergies and collaboration,
and to improve working conditions for its employees, while
controlling the environmental footprint of its activities.
Since 2008, the Company has been pursuing a policy of
locating its activities in premises certified by environmental
labels such as Haute Qualité Environnementale (HQE),
LEED, BREEAM and IGBC. To this end, it has strengthened
the environmental criteria used to select new premises.
By December 31, 2023, 37 sites had been awarded
environmental certification.
Number of environmental certifications
2023
2022
2021
Europe
Americas
Asia
TOTAL
118
15
11
11
37
15
12
10
37
13
13
9
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This “Responsible Real Estate” policy also aims to limit the
artificialization of land. Dassault Systèmes mainly leases
space on already‑built sites. Exceptionally, to support its
growth, the Company has decided to extend its facilities by
demolishing existing buildings, or to make exceptional use of
brownfield sites on its two major campuses, the 3DS Pune
Campus in India and the 3DS Paris Campus in France. To
offset any impact on biodiversity, particularly in India, trees
have been planted off‑site.
Bio‑based products
In France, the selection of the main catering service
provider for the 3DS Paris Campus included environmental
is
responsibility criteria. The selected service provider
contractually committed to providing more vegetarian dishes
and using more seasonal product than its predecessor. The
proportion of organic food has been maintained. Food waste,
which is sorted and composted, supplies 50% of the topsoil
needed to maintain the green spaces on site.
2.5.5
Circular Economy and Resource Use
2
2.5.5.1
Impacts, Risks and Opportunities
related to Circular Economy
As a digital software Company, Dassault Systèmes’ main
direct impacts and risks linked to the circular economy relate
to the procurement, use and processing of the IT equipment
required for its business. This is why the Company takes into
account the reparability of its equipment in its public tenders,
works to extend the lifespan of equipment, and optimizes
end‑of‑life monitoring and processing
(see paragraph
“2.5.5.4.2 Optimizing the Digital Lifecycle”). More indirectly,
for both suppliers and customers of Dassault Systèmes, the
main risks identified are:
— physical risks: difficulties in obtaining supplies of raw
materials or manufactured equipment, notably due to the
scarcity of resources, and a drop in the performance and/
or lifespan of IT equipment in operation due to extreme
weather conditions (notably heat), leading to an increase
in the risks of disruption of continuity and in obtaining
supplies of equipment;
— transition
in ensuring
risks: difficulties
regulatory
compliance, particularly in the event of a new ban on
the use of certain raw materials or industrial processes
necessary for the manufacture of IT equipment, the need
to relocate/rethink production to promote circularity and
thus encourage reuse.
lie
its customers, the
For both Dassault Systèmes and
opportunities
in the power of the 3DEXPERIENCE
platform, which fosters sustainable, more holistic – even
regenerative – innovation. Indeed, the virtual twin not
only facilitates eco‑design right from the product design
phase, by optimizing the use of materials, improving their
properties, increasing their lifespan and facilitating their
reparability, but also system optimization, enabling more
efficient recycling, notably by optimizing flows within value
chains.
The monitoring and evaluation of inputs and outputs at each
stage of the life cycle also makes it possible to estimate
their impact. Carried out as part of the implementation of
the EU Taxonomy, this impact assessment aims in particular
to quantify the eligibility and alignment rates of Dassault
Systèmes’ solutions with regard to climate change and
circularity. The share of eligible turnover, as well as the
share of aligned turnover for the climate change mitigation
objective, are mentioned in paragraph 2.7.2.3 “Eligible and
Aligned Turnover (Software & Services) as of December 31,
2023”. The share of aligned turnover for the objective of
transition to a circular economy will be estimated in 2024.
2.5.5.2
Circular Economy Strategy
Dassault Systèmes’ circularity strategy, like its climate
strategy detailed in paragraph 2.5.2.2 “Climate Strategy”,
aims to promote sustainability enabling solutions and
develop partnerships with key players
in the circular
economy. The paragraph 2.7.2.2 “Sustainability Levers” lists
the relevant sustainability levers to describe the contribution
of Dassault Systèmes’ solutions to the circular economy.
Paragraph 2.7.2.2 “Sustainability levers” lists the relevant
the contribution of
to describe
sustainability
Dassault Systèmes’ solutions to the circular economy.
levers
2.5.5.2.1
Developing Offers that contribute to
Circularity
Global material consumption is set to double from 79 Gt
in 2011 to 167 Gt in 2060. In the short term, this implies
analyzing and optimizing material flows, in particular by
systematizing product eco‑design and system circularity.
Changes in society, the diversity of consumer demand, and
the introduction of increasingly stringent regulations all call
for the development of new material formulations. However,
these increasingly stringent regulatory requirements are
making it more and more complex to comply and develop
these new products. The ability to manage this complexity,
on the scale of a compound or material, throughout its life
cycle, in a context of interdependent industrial sectors,
can therefore only be tackled by developing collaborative
practices based on robust scientific foundations.
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The GEOVIA, BIOVIA and SIMULIA brands in particular help
to accelerate the understanding of new or existing materials
and compounds and their behavior down to the smallest
detail, from molecular to macroscopic modeling, which is
essential in the move towards a circular economy.
The DELMIA brand enables to envisage, model and simulate
the new disassembly, recycling and logistics processes that
will have to accompany the implementation of more circular
practices,
More generally, beyond recyclability and waste reduction,
the paradigm shift towards a circular economy will be
concomitant with the rise of an experience economy. A
large part of Dassault Systèmes’ solutions portfolio already
enables to grasp the challenges of the transition to a circular
economy, and to envisage the externalities that will need to
be before new business models can be put in place.
2.5.5.2.2
Enriching Strategic Partnerships
For the second year running, Dassault Systèmes is taking
part in the EECONE project. Bringing together more than
48 organizations from nearly 16 European countries, the
initiative aims to reduce European e‑waste by developing
solutions capable of:
— increasing the lifespan of electronic products by applying
eco‑design guidelines aimed at increasing their reliability
and repair rates;
— reducing and replacing materials;
— improving circularity by reusing, recycling and recovering
materials and components from electronic products.
Dassault Systèmes also renews its collaboration with the
Ellen MacArthur Foundation. This partnership enables the
Company to obtain first‑rate advice on the development of
its circularity strategy.
2.5.5.3
Circular Economy Policies
Dassault Systèmes relies on a global environmental policy,
embodied in a number of internal policies:
— “Responsible Digital” policy;
— “Responsible Real Estate” policy;
— “Responsible Mobility” policy;
— “Responsible Procurement” policy.
in paragraph 2.5.2.3
These main policies are detailed
“Climate Policies”. Each of these policies provides the
framework for dedicated action plans, the main of which
are detailed, for the circular economy, in paragraph 2.5.5.4
“Resource Use and Circular Economy Action Plans”.
Each of these provides the framework for dedicated action
plans, the main achievements of which are detailed, for the
circular economy, in paragraph 2.5.5.4 “Resource Use and
Circular Economy Action Plans”.
2.5.5.4
Resource Use and Circular Economy
Action Plans
The circular economy fosters sustainable innovation and
encourages collaboration, by considering the externalities
of some as potential inputs for others. It encourages the
creation of networks, revitalizes territories and reduces
costs. With the 3DEXPERIENCE platform, Dassault Systèmes
offers a portfolio of solutions that can help orchestrate and
optimize these value‑creating virtuous circles, centered on
the economy of functionality. The Company also invests in
its own operations to promote this circular economy. To this
end, it is investing in the following priority fields of action:
— supporting the service economy;
— optimizing the digital life cycle;
— ensuring local impact;
— optimizing mobility;
— promoting repairability and reconditioned products;
— eco‑design training.
2.5.5.4.1
Supporting the Service Economy
Dassault Systèmes’ vision is to create a framework in
which circular economy practices can develop and thrive
through the adoption of environmentally friendly practices,
the design of recyclable products and the exploration of
new materials. In this sense, the 3DEXPERIENCE platform
can provide organizations with the solutions they need to
establish the holistic view of production chains required
to transition to these circular economy practices. In 2023,
Dassault Systèmes supported customers in manufacturing
industries in their transition to a more circular economy, and
in some cases, quantified their contribution to the circular
economy.
For example, Dassault Systèmes has enabled one of the
biggest players in the consumer packaging goods and retail
industry to accelerate the optimization of the mass/material
footprint of packaging for dozens of product lines. Thanks
to the SIMULIA solution, several projects have enabled the
customer to:
— reduce the wall thickness of packaging and the amount
of virgin raw materials used;
— significantly increase the integration of post‑consumer
recycled (PCR) materials.
Several types of simulation have enabled the Company to
demonstrate the same structural strength performance of
packaging throughout its life cycle, while drastically reducing
the overall quantity of virgin material to be used upstream
and recycled downstream.
This customer case demonstrates Dassault Systèmes’
ability to integrate other types and quantities of materials
with a lower carbon footprint into product design (see
paragraph 2.7.2.2 “Sustainability Levers”).
This year, Dassault Systèmes also helped an automotive
company reduce its consumption of raw materials and
waste. Implementing the NETVIBES solution to manage its
inventories of new parts enabled the customer to identify
existing parts that could be reused, thereby optimizing
raw materials.
production and avoiding wastage of
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This customer case demonstrates Dassault Systèmes’
contribution to one of the key principles of the circular
economy,
Reduction/Reuse/Renovation/Recycling
(RRRR) of circularity at the end of the life cycle (see
paragraph 2.7.2.2 “Sustainability Levers”). On the other
hand, to promote circularity, it is crucial to rethink the
composition of primary compounds widely used in many
industries without having any operational replacement
solution today. Dassault Systèmes has been working with
its customers in the materials science sector to meet these
structuring challenges. In particular, Dassault Systèmes’
BIOVIA solutions have enabled them to:
greenhouse gas emissions, use of water and rare earths,
hazardous materials.
For the Central Europe region, 75% of the 2,300 discarded
IT assets were recycled to give them a second life, saving
51 tons of CO2. The remaining 25% were dismantled to
provide spare parts for repairs, or reprocessed in compliance
with European directives 2002/96/CE from January 27,
2003 and 2012/19/UE from July 4th, 2012 on electrical and
electronic equipment waste (WEEE).
In addition, employees at many sites are provided with
containers for the collection of personal electronic waste.
— predict which mixtures of materials will decompose most
rapidly under domestic composting conditions or, on
the contrary, increase the durability of materials where
relevant;
In France, the collaboration initiated over 10 years ago with
a committed partner to promote social inclusion and reduce
the digital divide, has enabled Dassault Systèmes to reinject
over 650 laptops into the circular economy.
2
— to include, at the product design stage, studies of
disassembly and optimization of the energy required to
recycle or reuse materials;
— study the reformulation of materials to minimize the use
of natural resources or energy during production;
— optimize the trade‑off between the quantity and material
composition of a product and its structural performance.
This customer case demonstrates Dassault Systèmes’
ability
to develop materials and processes with a
substantially smaller overall footprint (see paragraph 2.7.2.2
“Sustainability Levers”).
2.5.5.4.2
Optimizing the Digital Lifecycle
In 2023, Dassault Systèmes continued the
initiatives
undertaken in 2022 in favor of sustainable IT. This year, the
focus was on improving the energy efficiency of data centers
(see paragraph 2.5.2.4.2 “Mastering the Impact of Digital
Technology”), recycling and reusing IT equipment.
emissions
equipment
Dassault Systèmes has reinforced its policy of acquiring
low‑carbon
integrating
carbon‑related costs into its evaluation criteria. This new
decision‑making process, which also takes into account
repairability indexes and the rate of use of recycled materials,
has been applied to laptops and workstations. These new
evaluation criteria will be progressively generalized as new
goods and services are acquired or renewed.
by
Launched
in 2023, the Life Cycle Assessment project
for IT equipment will lead to the creation in 2024 of an
environmental catalog (analysis of impacts throughout the
equipment’s life cycle, from manufacture to end‑of‑life
processing). This catalog will contribute to a more precise
measurement of environmental
impacts: equipment
certification, compliance with environmental standards,
In 2023, 57 tons of electronic equipment were collected and
recycled by Dassault Systèmes’ partners. The Company has
increased its contribution to the circular economy: almost all
end‑of‑life equipment is reused or recycled.
Particular emphasis was placed on the management of
printing resources. The renewal of the contract has enabled
the Company to take initiatives aimed at reducing its
environmental impact while optimizing its efficiency:
— service lifespan: extending the expected useful life of
equipment as soon as it is installed, while maintaining
the same level of service;
— new eco‑friendly equipment: the Company has updated
its printing equipment to include the latest generation
of eco‑designed, energy‑efficient models, all of which
are Energy Star certified. This has resulted in a reduction
in electricity consumption and a 28% reduction in its
carbon footprint in this particular area;
— reducing the number of printers: as part of its new
printing policy, the Company has reduced the number of
printers in service by over 15%;
— badge authentication system: continued use of a badge
authentication system that reduces printing volumes
by giving the choice of which documents to print, with
unprinted documents automatically deleted at the end of
the day;
— partner committed to respecting the environment: the
Company is committed to working with a partner who
has signed up to the SBTi initiative’s “Business Ambition
for 1.5°C” objective. All old equipment is taken back and
recycled, and the partner is also in charge of reprocessing
used consumables, through the reuse of toners, the
recycling of metals and plastics, and the conversion of
waste into energy.
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2.5.5.4.3
Ensuring Local Impact
In 2021, Dassault Systèmes defined a charter dedicated
to responsible events, which sets out a framework and a
list of key commitments to be met in order to minimize
the environmental
impact of events. This charter has
been shared with all event managers, as well as with
preferred event agencies. The external agencies involved
in organizing Dassault Systèmes’ strategic events are all
ISO 20121 certified, the international standard dedicated to
event management, guaranteeing that events are conducted
to the highest standards of responsible management.
2.5.5.4.4
Optimizing Mobility
its flexible working
Dassault Systèmes has maintained
program, enabling employees to work remotely for up to
two days a week. In addition to making it possible to share
workspaces, this program, launched in 2021, has the effect
of reducing employees’ commuting time by around 40%,
and consequently wear and tear on modes of transport.
Policies on company cars are being updated on a
country‑by‑country basis. In some countries, this means
extending the leasing period (as in Austria, from three to
four years), or continuing the transition to a cleaner fleet,
giving preference to hybrid and electric vehicles. France
and Germany, which account for over 50% of the company
car fleet, plan to offer only electric or hybrid vehicles in
every catalogue by 2025. Maintenance contracts are also
concluded to ensure optimum vehicle upkeep (tires, etc.), and
thus maximize their lifespan while limiting carbon emissions
and volatile organic compounds.
2.5.5.4.5
Promoting Repairability and
Reconditioned Products
Digital
Dassault Systèmes continues to work on integrating the
principles of the circular economy into its procurement
process. For example, a public tender for the acquisition of
new computers, screens and servers, issued in 2023, has
incorporated reparability and recyclability criteria into its
decision‑making process.
To make it easier to manage the extension of laptop lifetimes
to five years, Dassault Systèmes has included an increase
in the warranty period from three to four years in its latest
public tender for the purchase of laptops.
In addition, when Dassault Systèmes provides a solution on
a mobile terminal, as is the case with MEDIDATA’s Patient
Cloud offer (capturing data from decentralized clinical trials
with patients), the Company is preferring the usage of
reconditioned phones or connected tablets. By 2023, nearly
26,000 refurbished mobile devices had been purchased to
serve this offer.
Real Estate and Fittings
Although Dassault Systèmes rarely owns its own offices, the
Company has an active role in managing the interior fittings
of its sites. For example, when closing, opening or relocating
sites around the world, the Real Estate department applies,
wherever possible, the principle of reusing office furniture
from closing sites, transferring furniture to other sites,
selling its furniture to the landlord with a view to reuse by
the future tenant, or even renting already furnished office
locations. At several sites, in the Americas (Vancouver, Bend,
San Diego), Europe (Istanbul, Milan), and Asia (Bengalore,
Pune, Brisbane, Melbourne), Dassault Systèmes has
extended the lifespan of office furniture and fittings.
2.5.5.4.6
Eco‑Design Training
In contrast to the linear “take‑make‑throw” model, the
circular economy model is restorative and regenerative. It
represents a new systemic approach for Companies, based
on three principles:
— waste and pollution disposal;
— maintaining products and materials in use;
— regeneration of natural systems.
To define its circular economy priorities, Dassault Systèmes
works closely with opinion leaders and experts such as
those at the Ellen MacArthur Foundation, with which the
Company has forged a partnership. Dassault Systèmes is also
a member of Circul’R, an initiative that connects companies
around the world with circular economy entrepreneurs
to develop partnerships and stimulate
in
sustainability and resource efficiency. The aim is to create
platforms enabling large corporations, institutions, funds
and startups to discover circular innovations, receive peer
reviews of circularity projects and keep abreast of current
events in the circularity field.
innovation
As part of
its Sustainability Speaker Series program,
Dassault Systèmes organized a conference on the theme
of sustainable
innovation, providing an opportunity to
discuss circularity issues with several of its key customers.
At the same time, the Company launched a new training
module within
learning
program, entitled Acting towards Circular Economy. This
latest component provides concrete elements for effectively
guiding a business towards a more circular approach.
its Sustainability for SwYmers
In 2023, the Sustainable Development department also
launched a program entitled Circularity in Action, positioning
Dassault Systèmes as a key player in the implementation of
the circular economy through the 3DEXPERIENCE platform
and the creation of virtual twin systems. At the same
time, Dassault Systèmes has developed specific training
courses, based on the roles of its employees and designed
for particular job categories. The aim of these training
courses is to help them commit to sustainability on a daily
basis. These modules have been deployed in the Marketing,
Communications, Real estate and Procurement departments
– all employees of the Company have access to these specific
training courses. Buyers training, which in recent years
has focused on environmental issues, has led to all buyers
completing a Climate Fresco in 2022, followed by a Circular
Economy Fresco in 2023. The Digital Collage training course,
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which follows the same model as the Frescos, has also
been provided to research and development teams, to help
them better understand the impact of digital technology.
A dematerialized Escape Game was also used to highlight,
issues surrounding digital
in a collaborative way, the
responsibility in the broadest sense.
— digital: in 2024, Dassault Systèmes plans to strengthen
its governance by deploying internal control processes
and verifying the application of its IT Asset Disposal
Policy (ITAD). An effort will also be made over the
next few years to maximize the volume of laptops and
workstations reinjected into the circular economy;
In addition to Dassault Systèmes’ participation in internal
events and training programs for
its employees, the
Company runs several internal networks on a daily basis,
some of which, such as the Green Teams, are dedicated to
sustainability awareness and education and the transfer of
know‑how relating to the circular economy. These Green
Teams (see paragraph 2.1 “Sustainability Governance” have
mobilized over 250 members worldwide, notably in the
context of the organization of two theme months dedicated
to sustainability (April and September).
Lastly, training on environmental issues for the entire
(employees, customers,
Dassault Systèmes ecosystem
universities and partners) has been stepped up. The
“3DEXPERIENCE Eco‑Design Engineer – Associate” program,
which targets engineers deploying eco‑design practices,
counted 84 people certified this year, an increase of 33%
in one year. In 2023, a new t module entitled “Sustainable
Innovation Manager” was created. It aims to support
managers in project management and the application of
sustainability objectives.
— real estate management: fDassault Systèmes will
continue its initiatives to offer a second life to furniture
as part of new developments. A waste management
audit may also be considered;
— mobility: Dassault Systèmes SE has undertaken to open
negotiations with its social partners in 2024, as part of
the implementation of the Mobility Orientation Law.
In addition, the Company has undertaken to offer only
electric or hybrid engines in its catalog of company
vehicles by the end of 2025;
— the supply chain: the Company intends to continue its
efforts to take into account criteria relating to energy
efficiency, repairability and reconditioning whenever
they appear relevant in the procurement decision‑making
process, and especially when purchasing IT equipment;
— training and awareness‑raising: Dassault Systèmes will
continue its awareness‑raising initiatives and maintain its
presence in external professional networks dedicated to
the circular economy.
2.5.5.5
Circular Economy Objectives
2.5.5.6
Circular Economy Performance
Indicators
2.5.5.5.1
Solutions to promote the Circular
Economy
Dassault Systèmes
is committed to circular economy,
developing solutions enabling its customers to become
more circular. The Company’s objective is to accelerate this
development in order to meet the growing needs of its
customers in this area. In addition, in line with EU Taxonomy
objectives, Dassault Systèmes has set itself the target of
achieving 70% eligible turnover by 2027.
2.5.5.5.2
Responsible Operations
Although, as a software publisher, Dassault Systèmes has
a limited direct impact on its environment, it ensures that
its activities take into account the challenges posed by
circularity. To this end, the Company has defined a number of
objectives with regard to the following issues:
2.5.5.6.1
Estimating the Contribution of the
3DEXPERIENCE platform to the Circular
Economy
industries are committed
All Dassault Systèmes
to
transforming their business models to include circularity
right from the design stage of their products and services.
The indicator used to estimate the 3DEXPERIENCE platform’s
contribution to the circular economy is a standardized,
science‑based and audited indicator: the percentage of
eligible turnover for the EU Taxonomy for the objective of
transition to a circular economy (more details in paragraphs
1.8 “Environmental, Social and Governance Performance”
and 2.7 “Environmental, Social and Governance Metrics”).
In 2023, this percentage of eligible turnover reaches 58.7%
(see 2.7.2.3 “Eligible and Aligned turnover (Software and
Services) at December 31, 2023”).
2
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2.5.5.6.2
Estimated Environmental Footprint for Waste Management
A complete list of all environmental indicators can be found in paragraph 2.7.1.3 ”Environmental, Social and Governance
Performance Indicators“.
Environmental footprint for waste management
Total weight of waste (in tons)
Of which weight of ordinary waste (in tons)
Of which weight of electrical and electronic waste (WEEE) (in tons)
Of which percentage of electrical and electronic waste recycled
The reduction in total waste weight can be explained by a
31% drop in ordinary waste generated by Dassault Systèmes
sites, in particular 3DS Paris Campus in Vélizy.
2023
931.3
874
57.3
99%
2022
1,321.5
1,274
47.5
99%
In addition, the increase in electrical and electronic waste
(+20%) stems mainly from China and the United Kingdom.
In China, a large amount of electrical and electronic waste
was stored during the COVID‑19 pandemic before being
processed in subsequent years. In addition, a contract has
been signed with a new supplier, which has resulted in the
storage of waste, followed by more extensive collection in
2023 than in previous years. In the United Kingdom, the
increase in electrical and electronic waste is due to two
relocations.
2.5.5.6.3
Other Circular Economy Metrics
In order to promote circularity as effectively as possible among its employees, Dassault Systèmes tracks additional
performance indicators, such as:
Other circular economy indicators
Total number of Speakers Series registrations since 2022
% of Company’s procurement team having attended a Circular Economy Collage in 2023
Number of employees trained in Sustainability for Swymers since 2022
2023
7,305
100%
3,800
2.6
Business Ethics and Vigilance Plan
Dassault Systèmes defines rigorous rules of good business conduct for its internal and external stakeholders. In compliance
with current laws, the Company also implements a Vigilance Plan.
2.6.1
Promoting Strong Business Ethics
Compliance with ethical rules and international standards is
an integral part of Dassault Systèmes’ purpose, “to provide
businesses and people with 3DEXPERIENCE universes
enabling them to imagine sustainable innovations, capable of
harmonizing product, nature and life”.
Since its creation, the Company has shaped its culture and
built its reputation on a number of fundamentals, including
the establishment of long‑term relationships with its main
stakeholders – employees, customers, business partners,
suppliers, investors, regulatory bodies – and the development
of high‑quality, high‑value‑added products. Trust and
integrity, backed by rigorous ethics and compliance, are at
the heart of Dassault Systèmes’ commitment to ethical and
sustainable growth.
Dassault Systèmes’ commitment to professional ethics and
corporate responsibility is demonstrated by:
— rules applicable to all its employees and its ecosystem;
— ethics and compliance governance;
— employee awareness and training.
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2.6.1.1
Ethics and Compliance Rules Applicable
at Dassault Systèmes
Dassault Systèmes’ business ethics are based on
international texts on Human and Social
fundamental
Rights and environmental protection, such as the United
Nations International Bill of Human Rights, the International
Convention on the Rights of the Child, the Organisation for
Economic Co‑operation and Development (OECD) Guidelines
for Business and the various fundamental conventions of the
International Labor Organization.
is formalized
It
in corporate governance policies and
procedures. Its pillars, based on the above‑mentioned
fundamental texts, are the Code of Business Conduct, the
Corporate Social Responsibility Principles and the Sustainable
Charter with Suppliers. These documents are intended to
serve as a reference for the Company’s employees to guide
their behavior and interactions in their day‑to‑day activities,
and to ensure the commitment of the Company’s partners
and suppliers (see paragraph 2.6.3 “Committing to Ensure
Respect for Human Rights and Fundamental Freedoms”).
They are available on the Dassault Systèmes website
(https://www.3ds.com/fr/about‑3ds/what‑drives‑us/ethics‑
compliance) and on its internal 3DEXPERIENCE platform.
2.6.1.1.2
Corporate Social Responsibility Principles
The Corporate Social Responsibility Principles are based on
the above‑mentioned fundamental international texts. They
provide for:
— prohibiting the employment of children of compulsory
school age (and in any case of children under 15), forced
labor and all other forms of modern slavery;
— the prohibition of all forms of discrimination
in
recruitment, career development and at the end of
employment relationships;
— guaranteeing satisfactory working conditions to ensure
the health, safety and hygiene of employees;
— compliance with applicable legal or regulatory minimums
in terms of remuneration, freedom of association
and protection of trade union rights, and the right to
collective bargaining;
— zero tolerance of corruption and influence peddling;
— compliance with regulations on personal data protection
and environmental protection.
2.6.1.1.3
Responsibility towards Suppliers
2.6.1.1.1
Code of Business Conduct
2.6.1.1.3.1
Sustainable Charter with Suppliers
This Code – introduced in 2004 – applies to all the
in which
Company’s employees. It describes the way
the Company intends to conduct its business. It deals in
particular with (i) compliance with regulations applicable to
Dassault Systèmes’ activities, (ii) the interactions of each
individual within the Company and with its ecosystem, and
(iii) the protection of the Company’s assets, in particular its
Intellectual Property and that of its customers and partners.
is
supplemented by dedicated policies covering
It
anti‑corruption and
influence peddling, personal data
protection, conflicts of interest, public affairs management
and the protection of confidential information, including
insider
information (see paragraph 2.6.2 “Striving for
Transparent Business Relations”).
In 2020, the new version of the Code of Business Conduct
was deployed within the Company, enriched with the new
rules on anti‑corruption (Sapin 2 Law) and personal data
protection (GDPR). It is available on the Company’s website:
https:/www.3ds.com.
This Code also
includes references to the Company’s
applicable policies on social responsibility and business
ethics, as well as a pedagogical presentation of the
Whistleblowing procedure. In 2023, it was updated to
take account of Dassault Systèmes’ new Whistleblowing
procedure, which strengthens whistleblower protection.
A webform and a voice mailbox are now available for
reporting, in addition to the historical email address (see
paragraph 2.6.1.2.3 “The Whistleblowing Procedure”).
In addition to reducing the negative externalities of its
value chain, Dassault Systèmes strives to develop positive
externalities, by increasing the use of employment through
the French adapted and protected work sector and by paying
close attention to supplier payment deadlines.
The Sustainable Charter with Suppliers describes
Dassault Systèmes’ policy on responsible procurement. It
clarifies the Company’s expectations of its current and future
suppliers, service providers and subcontractors in terms
of corporate social responsibility, by setting out a number
of commitments. Dassault Systèmes also makes these
commitments to its suppliers.
The Charter deals with the behavior expected from both
sides in terms of ethics and compliance:
— in business relations: anti‑corruption, conflicts of interest,
gifts and hospitality, compliance with competition law,
handling of confidential
information, personal data
protection;
— in terms of working conditions and respect for Human
rights: prohibition of child labor, prohibition of forced
labor, respect for the right to freedom of association
and collective bargaining, prohibition of all forms of
discrimination, guarantee of a safe and healthy working
environment, and working conditions that protect human
health and safety;
2
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— in terms of the impact of the Company’s activities on
the environment, in particular limiting greenhouse gas
emissions.
The Sustainable Charter with Suppliers is available to the
public
(https://www.3ds.com/assets/invest/2022‑01/3ds‑
sustainable‑charter‑with‑suppliers‑en.pdf).
It enables suppliers acting in good faith to report any
ethical, compliance, social or environmental issue to the
Business Ethics and Compliance department. In 2024, the
Whistleblowing procedure will be updated, in particular to
include the additional means available to suppliers – like
the Company’s other stakeholders – to raise an alert (see
paragraph 2.6.1.2.3 “The Whistleblowing Procedure”).
Social, environmental and ethical criteria are integrated
throughout the procurement process, from the expression
of need to the choice of supplier. As part of its drive for
continuous
improvement, Dassault Systèmes submitted
in 2023 its application for the Responsible Purchasing
and Supplier Relations label (RFAR) to the Médiateur des
Entreprises and the French National Purchasing Council.
Aiming for the label enables the Company to improve its
responsible procurement practices and ensure that they are
aligned with the ISO 20400 standard.
Dassault Sytèmes’ suppliers are
regularly surveyed.
These enable the Company to assess the quality of
procurement processes and supplier relations. In 2023, the
satisfaction index (Net Promoter Score – NPS) was 90%
for the expenditure commitment process, and 86% for the
supplier onboarding process. As part of its public tenders,
Dassault Systèmes also asks certain suppliers questions
relating to their ESG commitments, such as their ratings
in benchmark non‑financial ratings, their action plans to
reduce their own environmental footprint, or their climate
commitments.
2.6.1.1.3.2
Compliance with Supplier Payment Terms
Dassault Systèmes pays particular attention to supplier
payment terms. For example, the average payment term for
supplier invoices (Days to pay) is 35 days, and the average
payment delay is 6 days of the amount paid for fiscal year
2023. This performance is stable compared with 2022,
and is one of the pillars of the Company’s “Responsible
Procurement” policy.
2.6.1.2
Dassault Systèmes’ Ethics and
Compliance Governance
Ethics and compliance governance at Dassault Systèmes
is based on an Ethics Committee and a Business Ethics
and Compliance Department, as well as the Company’s
Whistleblowing procedure.
The remit of the Ethics Committee and the Business Ethics
and Compliance department covers ethics and compliance
126
investigations, particularly those relating to breaches of
the rules laid down in the Code of Business Conduct. These
include, in particular, rules relating to the protection of
Intellectual Property, confidentiality, anti‑corruption, fraud,
conflicts of interest, compliance with competition or export
control rules, personal data protection and IT security, ethics
in labor relations, including the fight against discrimination
and harassment, and the use of social media and networks.
Dassault Systèmes’ compliance program, its developments
and its key indicators are presented to the Board of Directors
once a year.
2.6.1.2.1
The Ethics Committee
The Dassault Systèmes Ethics Committee meets once a
month. Its members are the Company Secretary, the Human
Resources Director, the Legal Director, the Internal Audit
Director, the Director in charge of people ethics, the Business
Ethics Director and the Group Compliance Officer.
It ensures that employees comply with the rules set out
in the Code of Business Conduct. The Ethics Committee
systematically investigates any cases of non‑compliance
brought
the
Whistleblowing procedure.
its attention,
in particular
through
to
In 2023, the Ethics Committee examined fifty‑eight cases
opened as a result of suspected non‑compliance. All of
these cases were investigated. Twenty‑two investigations
found breaches of the Dassault Systèmes Code of Business
Conduct. The breaches identified and dealt with in 2023
break down as follows:
— 36% deal with human resources
issues
(see also
paragraph 2.3.5 “Promoting Diversity and Inclusion”);
— 64% on business ethics.
The Company has taken disciplinary action in 100% of cases.
2.6.1.2.2
The Business Ethics and Compliance
department
This department reports to the Dassault Systèmes Legal
Department.
Its role is to define and implement the Company’s Ethics
and compliance program, in conjunction with the Ethics
Committee. In liaison with other Company departments, it is
notably responsible for:
— promoting a culture of integrity within Dassault Systèmes,
in particular by raising employee awareness and providing
training to them;
— assessing and preventing Dassault Systèmes’ ethics and
compliance risks;
— carrying out investigations to assist local teams in the
resolution of cases that arise;
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Social, Societal and Environmental Responsibility
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2
— ensuring the effectiveness of the Company’s ethics
and compliance system, and making proposals to the
Ethics Committee concerning the development of
Dassault Systèmes’ ethics and compliance program.
It ensures that the principles described in the Code of
Business Conduct are implemented and respected, as well
as the Company’s specific ethics and compliance policies,
recommendations and processes.
— by leaving a telephone message on the Business Ethics
and Compliance department’s voice mailbox, accessible
to 3 people only; the numbers to call for each country
where the Company is present are published on its
website under the following link: https://www.3ds.
com/fr/about‑3ds/what‑drives‑us/ethics‑compliance/
whistleblowing‑aler t‑procedure/how ‑make ‑aler t‑
telephone.
Ethics
and Compliance
department
The Business
systematically evaluates and investigates all the alerts it
receives, notably through the Whistleblowing procedure. This
leads to the opening of formal cases, which are investigated
by the Business Ethics and Compliance department and
submitted to the Ethics Committee.
In this context, the Company initiated a number of due
diligences in 2023, some of which identified cases of
non‑compliance, including:
— 26 in‑depth outsourced third‑party evaluations;
— 367 evaluations of third parties (business partners,
intermediaries, donations, etc.) using specific databases;
— 1,432 supplier evaluations;
— 10 Human rights risk assessments.
The Business Ethics and compliance department is also
involved in assessing the risk of conflicts of interest, and in
the authorization process for gifts and invitations (marketing
and other events).
2.6.1.2.3
The Whistleblowing Procedure
Any case of non‑compliance with applicable laws and
regulations – particularly in terms of anti‑corruption and due
diligence ‑, the Dassault Systèmes Code of Business Conduct
or the Sustainable Charter with Suppliers, may be reported
via the Dassault Systèmes Whistleblowing procedure.
is available on the Company’s
This procedure
internal
3DEXPERIENCE platform, as well as to the public on its
website https://www.3ds.com/under the following
link:
https://www.3ds.com/fr/about‑3ds/what‑drives‑us/ethics‑
compliance/whistleblowing‑alert‑procedure.
The Whistleblowing procedure has been modified in 2023
to reinforce the new provisions on whistleblower protection
resulting from European Directive 2019/1937 of October 23,
2019 and its transposition by European Union member
countries in 2022. This new version is more transparent,
educational and incentive‑based.
As stated in the procedure, Dassault Systèmes encourages
bona fide whistleblowers to report their concerns, while
guaranteeing the confidentiality of their identity and the
absence of reprisals.
Whistleblowers can now issue an alert:
— by writing to the Dassault Systèmes Ethics Committee
at people.ethicscommittee@3ds.com or via an online
form on the Company’s website under the following link:
https://www.3ds.com/fr/about/corporate‑responsibility/
ethics‑compliance/whistleblowing‑form/; or
2.6.1.3
Employee Awareness‑Raising and
Training
Employee awareness‑raising and training is an essential pillar
of the Company’s commitment to ethics and compliance.
In 2022, Dassault Systèmes deployed three new online
training courses, all mandatory, covering subjects deemed
fundamental to the Company and its ecosystem, namely:
— Ethics and compliance themes as developed in the Code
of Business Conduct, to be followed each year;
— personal data protection, also recurring every year;
— cybersecurity
issues, every
two years
(see also
paragraph 2.3.2 “Developing Knowledge and Know‑how”).
All Company employees are required to attend the
mandatory Code of Business Conduct training course.
They must systematically declare their knowledge of
and commitment to the Code of Business Conduct at the
end of the training. The latter includes a presentation of
the Whistleblowing procedure. It is available in eleven
languages and comprises a theoretical part followed by
practical applications in the form of questions and answers
for each topic covered, notably ethics in the professional
environment with a focus on potential situations of
harassment or discrimination, anti‑corruption, intellectual
property protection, personal data protection, respect for
confidentiality, compliance with competition law, export
control rules and
information
systems security, prevention of conflicts of interest, etc.
international sanctions,
At December 31, 2023, 22,283 employees representing
98.6% of the base workforce had taken this general training
course, compared with 18,424 representing 98.6% of the
base workforce at December 31, 2022.
Employee awareness is also raised through presentations
at seminars held within the Company, face‑to‑face training
or webinars on specific subjects for employees who are
particularly exposed or subject to a legal training obligation
in their country, regular articles and the distribution of
instructional videos on the communities of the Company’s
internal 3DEXPERIENCE platform. In 2023, the Company
worked on a global program to combat discrimination
and harassment, building in particular on the two online
training courses on situations and forms of discrimination
and harassment deployed in 2021 (see paragraphs 2.6.3
“Committing to Respect for Human Rights and Fundamental
Freedoms” and 2.6.4 “Maintaining an Appropriate Vigilance
Plan”).
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2.6.2
Striving for Transparent Business Relations
Dassault Systèmes’ program to prevent corruption and
non‑compliance with the Code of Business Conduct is based
on 3 principles: prevention, detection and remediation.
2.6.2.1.1
Prevention
is
The prevention of corruption at Dassault Systèmes
based on the dissemination of policies, procedures and
recommendations
the Company’s employees and
partners. These are made available on the Company’s
3DEXPERIENCE platform (some are also published on the
company’s website). They include:
to
— Code
of
Business
Conduct:
reiterates
Dassault Systèmes’ zero‑tolerance policy
towards
corruption and influence peddling, such as bribes and
facilitation payments, regardless of local custom or
commercial pressure and even if this results in the loss of
business opportunities;
it
— the
“Dassault Systèmes Anti‑Corruption Policy”
(updated in December 2017 and July 2019, available on
the Dassault Systèmes website https://www.3ds.com/
fileadmin/COMPANY/Ethics‑and‑compliance/3DS‑Code‑
de‑Conduite‑des‑Affaires‑FR.pdf);
— “Recommendations
interactions
Dassault Systèmes intermediaries” (June 2017);
for
with
— Dassault Systèmes’ “Recommendations on conflicts of
interest” (April 2017);
— the Whistleblowing
in
December 2023 to include provisions on whistleblower
protection and currently being
rolled out within
Dassault Systèmes);
procedure
(updated
— the Charter for Responsible Public Affairs (published
the Dassault Systèmes
in December 2023 on
website
https://www.3ds.com/fr/about/corporate‑
responsibility/ethics‑compliance/charter‑responsible‑
public‑affairs.
The Company’s employees must remain vigilant, comply
with all applicable laws and regulations and must never,
directly or indirectly, encourage, offer, attempt to offer,
authorize, promise or accept, in any form whatsoever, an
advantage (for example, payments, gifts, bribes or illicit
commissions) with a view to obtaining or retaining a contract
or obtaining an inappropriate benefit, even if they believe
they are acting in the best interests of the Company.
Dassault Systèmes’ commitment to ethical and sustainable
growth is reflected in its dedication to transparent business
relationships. The Company
implements a business
ethics program based on risk assessment. This includes
anti‑corruption and responsible governance.
2.6.2.1
The Fight against Corruption
Dassault Systèmes has a zero‑tolerance policy towards
corruption and
is
committed to complying with all applicable anti‑corruption
laws, including the US Foreign Corrupt Practices Act (FCPA),
the UK Bribery Act and the French Sapin 2 law.
influence peddling. The Company
Corruption and influence peddling risks arising from the
Company’s business model include:
These
partners).
intermediaries
(distributors, agents,
— the use of
integrators,
are
independent third parties and are fully responsible for
their actions, but Dassault Systèmes could, in certain
cases (negligence, willful blindness), be held
liable
should these intermediaries make illicit payments for the
purpose of generating Revenue;
intermediaries
— direct or indirect involvement with customers located in
“high‑risk” countries and/or qualified as “public officials”;
The Company’s anti‑corruption program systematically
manages these risks. It is based on:
— a specific map dedicated to corruption and influence
peddling
risks, updated periodically and arising
from the Company’s activities, submitted to the
Dassault Systèmes Board of Directors for approval;
— an action plan drawn up by the Business Ethics
and compliance department and submitted to the
Dassault Systèmes Board of Directors for approval;
— an internal control and audit system;
— rigorous operational processes;
— a community of over thirty Compliance Ambassadors
made up of legal, financial and operational experts who
support the Business Ethics and compliance department
in local Dassault Systèmes entities.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Accordingly, gifts and invitations must be for reasonable
amounts, as defined in the Anti‑Corruption Policy, be
compatible with local customs and practices, and comply
with applicable legislation. They must be appropriate and not
include elements likely to damage the Company’s reputation
in the event of public disclosure. Requests for exceptions
to the rules on gifts and invitations, managed via the
3DEXPERIENCE platform, are authorized in particular by the
Business Ethics and compliance department.
Preventing corruption also involves training and raising
awareness among the Company’s employees and partners,
thanks to specific face‑to‑face or webinar training and
awareness‑raising
initiatives, regularly delivered by the
Business Ethics and compliance department to employees
exposed to this risk, and to online training dedicated to
anti‑corruption.
of
the
At December 31, 2023, 22,482 employees representing
compared with
base workforce,
99.5%
18,582 representing 99.5% of the same workforce at
December 31, 2022, had been trained in the “Understanding
anti‑corruption principles” module.
Dassault Systèmes distributors
countries
with heightened corruption risks are made aware of the
Company’s “zero tolerance” policies and rules on corruption,
as part of dedicated training programs.
certain
in
2.6.2.1.2
Detection
The detection of corruption at Dassault Systèmes is based
on alerts received, in particular as part of the Whistleblowing
procedure, due diligence procedures for the selection of
intermediaries, accounting controls carried out by the
relevant teams, specific due diligence carried out by the
Internal Audit department as part of the evaluation of
internal control, or ad hoc audits carried out to prevent or
detect possible cases of fraud or non‑compliance with the
Company’s rules and procedures.
As part of the ongoing process of improving its various
anti‑corruption tools, the Company has strengthened its
policy of due diligence when selecting its intermediaries
through additional processes, including a self‑declaration
questionnaire, reputation checks using dedicated external
tools and compliance databases, verification of services
performed by agents, and validation, when selecting them,
by the Business Ethics and Compliance department.
2.6.2.1.3
Remediation
The Ethics Committee deals with cases of non‑compliance
with the Code of Business Conduct, including possible cases
of corruption. It takes the necessary steps to put an end
to such non‑compliance, and makes recommendations on
appropriate sanctions.
Social, Societal and Environmental Responsibility
Business Ethics and Vigilance Plan
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As part of the continuous improvement process for its ethics
and compliance program, the Company learns from the cases
examined and enriches its anti‑corruption tools (policies,
controls, procedures, training, awareness‑raising).
Dassault Systèmes measures the performance of
its
anti‑corruption program by means of key performance
indicators, including the completion rates of its mandatory
anti‑corruption training courses (see paragraph 2.6.2.1.1
“Prevention”).
2.6.2.2
Responsible Management of Public
Affairs
2
Dassault Systèmes’ commitment to responsible lobbying
includes both a commitment to transparency, in line with
applicable regulations and best practices, and an explicit
commitment to the principles of corporate responsibility
enshrined in the United Nations Global Compact, to which
Dassault Systèmes is a signatory.
Dassault Systèmes is a scientific company focused on
research and software development activities, whose
ambition is to imagine sustainable innovations capable of
harmonizing products, nature and life. Its lobbying activities
are limited and in line with the Company’s objectives and
its values of trust and transparency. They focus on key
issues such as industrial and digital sovereignty, sustainable
innovation and Life Sciences & Healthcare policies.
Dassault Systèmes supports them with dedicated policies,
targeted training and transparent practices.
2.6.2.2.1
Policies Dedicated to Business Integrity
These are the Charter for Responsible Public Affairs, the Code
of Business Conduct and the Company’s Anti‑Corruption
Policy (all three published on the https://www.3ds.com/fr/
about‑3ds/what‑drives‑us/ethics‑compliance website).
In 2023, the Company formalized and published its Charter
for Responsible Public Affairs. This Charter details the
Company’s commitments in the context of public affairs, as
well as its principles and recommendations in this area for
all its employees. Both the Charter and the Code of Business
Conduct expressly state that Dassault Systèmes does not
provide political contributions or benefits to promote or
support a specific political party or public official. Both
documents also emphasize the importance of employees
identifying, avoiding and declaring actual or potential
conflicts of interest.
In addition, the Charter stipulates that the Company shall
only join professional associations, industry organizations
and think tanks that reflect its values and interests, and
contribute directly or indirectly to the development or
reinforcement of its activities. Employees must act within
these organizations in full compliance with applicable laws
and regulations, in particular competition rules.
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The Anti‑Corruption Policy defines and governs the role and
activities of Dassault Systèmes’ interest representatives.
Thus, all missions to influence public officials or institutions,
all decisions to entrust such a mission to a third party, and
all recourse to lobbying agencies, are strictly governed by
detailed rules of good governance and ethics, with dedicated
controls.
Information is also available in the Sustainable Development
– ESG – Governance – Public Affairs Management section of
its website.
2.6.2.2.2
Targeted Training Courses
(online
in the context of
Employees identified as likely to engage in lobbying activities
receive specific training on anti‑corruption and transparency
requirements
interest representation
activities
training, webinars, awareness‑raising
videos). In addition, Dassault Systèmes’ anti‑corruption
training includes raising employees’ awareness of the risks
of dealing with public officials. For example, the Company’s
rules on gifts and invitations are stricter when dealing with
public officials.
2.6.2.2.3
Transparent Practices
Interest representation activities are monitored by the
General Secretariat and supervised by the Business Ethics
and compliance department.
They are organized as follows:
— in France, Dassault Systèmes is listed in the Répertoire
français des représentants d’intérêts kept by the Haute
Autorité de la Transparence de la Vie Publique (HATVP)
(https://www.hatvp.fr/le‑repertoire/). Employees likely
to be in contact with public officials are identified and
their list is reviewed each year. They are asked to declare
their activities via a dedicated form. An annual activity
report, including allocated budgets, is produced and
published by the HATVP, and accessible on its website:
https://www.hatvp.fr/fiche‑organisation/?organisati
on=322306440#;
— for the European Union, interest representation activities
are identified and published in the European Union
in which Dassault Systèmes
Transparency Register,
is
registered under number 454608238523‑04.
The activities carried out and budgets allocated by
Dassault Systèmes are easily accessible via the following
link: https://ec.europa.eu/transparencyregister/public/
homePage.do. Dassault Systèmes follows the rules of
the Code of Conduct of this European Union transparency
register in its relations with European institutions;
— in terms of corporate governance, the Company’s
employees must not engage in any activities relating
to public affairs without the approval of their superiors.
They report to their superiors and to the General
Secretariat for the most important matters. Employees
representing Dassault Systèmes in organizations likely
to become involved in public affairs must inform the
General Secretariat of Dassault Systèmes’ membership of
that organization.
2.6.3
Committing to Ensure Respect for Human Rights and
Fundamental Freedoms
2.6.3.1
The Founding Principles
Dassault Systèmes’ commitment to ethical and sustainable
growth is based on the fundamental value of respect for
Human Rights and Fundamental Freedoms.
Dassault Systèmes’ commitments
in this respect are
formalized in various policies, declarations and charters,
available on the Company’s website (https://www.3ds.com/
fr/about‑3ds/what‑drives‑us/ethicscompliance). They all
refer to the international standards to which the Company
adheres (see paragraph 2.6.1.1 “Ethics and Compliance Rules
applicable at Dassault Systèmes”): the Code of Business
Conduct, the Corporate Social Responsibility Principles, the
Sustainable Charter with Suppliers, the annual declaration
of actions taken to combat modern slavery and human
trafficking required by the UK Modern Slavery Act.
In addition, Dassault Systèmes is a member of the United
Nations Global Compact (see the introduction to Chapter 2
“Social, Societal and Environmental Responsibility” and the
communication on progress in the “Cross‑reference tables”
section).
2.6.3.2
Dassault Systèmes’ Approach to its
Customers, Partners and Suppliers
To manage and mitigate the risks of non‑compliance in
terms of Human Rights and Fundamental Freedoms within
its ecosystem, Dassault Systèmes relies in particular on
certain policies, the implementation of due diligence and its
Whistleblowing procedure.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT The Company promotes respect for Human Rights and
Fundamental Freedoms within its ecosystem, as its suppliers
and partners are required to adhere to the Sustainable
Charter with Suppliers or the Corporate Social Responsibility
Principles. These Principles are also made available to
partners via the 3DEXPERIENCE platform dedicated to them,
as are the Code of Business Conduct and the Anti‑Corruption
Policy. The Company has the option of
immediately
terminating a contract with a supplier in the event of a
breach of its Sustainable Charter with Suppliers or of its
Corporate Social Responsibility Principles.
In addition to strict compliance with applicable sanctions and
export control regulations, Dassault Systèmes has defined
a 3DS Acceptable Use Policy in line with its objective of
enabling sustainable innovation. In accordance with this
policy, the Company does not engage with new customers
meeting certain criteria in four market segments, and/
or develop dedicated products or services. These market
segments are coal for energy purposes, tobacco (including
e‑cigarette production), “universally prohibited” weapons,
and oil and gas where no public commitment to reduce
carbon emissions has been made.
Dassault Systèmes also performs reasonable due diligence
on third parties, including research into adverse media
coverage of Human Rights and Fundamental Freedoms
issues, and monitoring for risk situations. Where appropriate,
the Company’s products are assessed for controversial
use or misappropriation, and the associated reputational
risks, using specialized due diligence databases and a risk
assessment method dedicated to Human Rights issues. In
2023, 10 such assessments were carried out.
its
Dassault Systèmes continues
Sustainable Charter with Suppliers in all its contracts (see
paragraphs 2.6.1 “Promoting Strong Business Ethics” and
2.6.5 “Maintaining an Appropriate Vigilance Plan”).
to deploy
further
Finally, as indicated in the Whistleblowing procedure, the
Sustainable Charter with Suppliers and the Code of Business
Conduct, all the Company’s stakeholders, and in particular
suppliers and partners, can report any breach of Human
Rights and Fundamental Freedoms to the Company’s Ethics
Committee by email, online web form or telephone message.
The Whistleblowing procedure is published on www.3ds.com
in the “Ethics and compliance” section.
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2.6.3.3
Dassault Systèmes’ Internal Approach
To manage and mitigate the risks of non‑compliance in
terms of Human Rights and Fundamental Freedoms within
its organization, Dassault Systèmes relies in particular on
mandatory annual online training on the themes of the Code
of Business Conduct and on its Whistleblowing procedure,
updated in 2023, which enables employees to report any risk
of serious infringement of Human Rights and Fundamental
Freedoms (see paragraph 2.6.1 “Promoting Strong Business
Ethics”).
The Company’s objective
is to prevent the risks of
discrimination and moral or sexual harassment, and to
guarantee working conditions that ensure the health and
safety of individuals. Ethics in the professional environment,
with a focus on potential situations of harassment or
discrimination, is part of the “Code of Business Conduct”
training program. An online training course dedicated to
situations and forms of discrimination and harassment has
been available for employees and managers since 2021 (see
also paragraphs 2.3.3 “Preventing Health, Safety and Well‑
Being in the Workplace”, 2.3.5 “Promoting Diversity and
Inclusion” and 2.6.5 “Maintaining an appropriate Vigilance
Plan”).
The prohibition of discrimination and harassment
is
included in the Company’s internal policies and procedures,
including those relating to recruitment processes, and
in management training. The Code of Business Conduct
includes clear definitions of harassment and discrimination,
with examples. Finally, the Company implements a policy
of inclusion for people with disabilities, and is developing a
number of initiatives on issues relating to gender equality
(see paragraphs 2.3.5 “Promoting Diversity and Inclusion”
and 5.1.7.5 “Gender Equality Within the Executive Team and
Top Positions of Responsibility”).
its performance
Dassault Systèmes measures
in terms
of respect for Human Rights and Fundamental Freedoms
by means of key performance indicators including the
completion rate for the online “Code of Business Conduct”
training course, the proportion of cases handled by the
Ethics Committee relating to this theme and the number
of assessments carried out on risks of breaches of Human
Rights and Fundamental Freedoms (see paragraph 2.6.1
“Promoting Strong Business Ethics”).
2
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2.6.4
Committing to a Responsible and Transparent Tax Policy
In the event of uncertainty as to the applicable tax treatment,
the Company can secure its position by initiating a rescript
procedure. In this way, it can use the Advance Pricing
Agreement procedure to apply its transfer prices.
the
ICAP
Dassault Systèmes, as part of a voluntary initiative, has
(International Compliance Assurance
joined
Program)
in which
in 2019, an OECD pilot program
taxpayers and tax authorities cooperate multilaterally
to assess the international tax practices of participating
groups in order to determine the level of associated tax
risk. Dassault Systèmes is the first French company to join
this program. This collaboration has been a success, and
has helped to increase cooperation and transparency with
the various tax authorities involved in the program. The
majority of participating tax authorities have validated
Dassault Systèmes’ transfer pricing policy, which should
help secure any future tax audits.
In addition, the Company participates in several OECD
working groups (notably Pillars 1 and 2) and in certain
national initiatives.
2.6.4.1.3
Responsibility – Dassault Systèmes is
committed to having a responsible Tax
Policy
All the Company’s legal entities are operated according
to commercial and operational considerations. They have
economic substance.
Dassault Systèmes has no non‑operating legal entities
in Non‑Cooperative States and Territories (tax havens) as
defined by French and European tax law, and is committed to
maintaining this practice.
As part of its external growth, the Company carries out tax
due diligence and may need to modify certain practices that
are not in line with the tax policy set out above.
Finally, it is Dassault Systèmes’ policy not to encourage or
promote tax evasion.
2.6.4.2
Tax Organization and Governance
A dedicated team of experts with in‑depth knowledge of
international tax issues (“the Tax department”) is responsible
for assisting all Dassault Systèmes entities and functions
with any issues that may have a tax impact. They regularly
take part in internal and external training courses, notably on
tax regulations. They also provide training to the Company’s
various stakeholders, informing them of any changes in
legislation and Dassault Systèmes’ general tax policy.
Dassault Systèmes’ commitment to ethical and sustainable
growth is underpinned by a transparent and responsible tax
policy in all countries where the Company operates. As part
of this commitment, the Company’s tax policy is based on
three main principles: tax compliance, tax transparency and
tax responsibility.
2.6.4.1
Tax Policy
Dassault Systèmes’ tax policy is defined in accordance with
current regulations, in particular the principles deriving from
European Community law and the recommendations of the
Organisation for Economic Co‑operation and Development.
Its implementation is in line with the Company’s operational
objectives.
2.6.4.1.1
Compliance – Dassault Systèmes
complies with Tax Regulations
The Company ensures that it prepares and files the required
tax returns on time, and pays the taxes due accordingly. It
also provides all accurate and adequate information required
by the tax authorities.
Dassault Systèmes applies the arm’s length principle by
setting its prices in accordance with OECD recommendations
and national laws. By keeping abreast of tax developments
and any
interpretative discrepancies that may arise,
the Company is always careful to comply with the tax
regulations in force in the countries where it does business. It
also complies with its annual country‑by‑country reporting
obligations (CBCR).
Taxes are paid in the countries in which they are due. The
Company may benefit from certain tax advantages to
support investment, particularly in R&D, employment and
economic development. These advantages are implemented
in compliance with the legal, regulatory or administrative
framework and are aligned with Dassault Systèmes’
operational objectives.
2.6.4.1.2
Transparency – Dassault Systèmes
is open and transparent with Tax
Authorities
Insofar as possible, the Company seeks to build relationships
of trust with tax authorities, based on transparency,
cooperation and mutual respect. In the course of tax audits,
certain positions taken by the Company may be challenged
by a tax authority, particularly where a provision of national
or international law gives rise to difficulties of interpretation.
When such a situation arises, it may lead to litigation if
Dassault Systèmes considers it justified.
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The Company’s Tax Director reports to the Executive Vice‑
President, Chief Financial Officer, and supervises all in‑house
tax specialists in Europe, Asia and the Americas, to ensure
that the local tax environment is taken into account and that
the function remains independent.
Dassault Systèmes’ global tax policy has been approved by
the Sustainability Steering Committee.
In addition, the Audit Committee is briefed at least once a
year on tax issues and changes in legislation likely to have an
impact on the Company.
The aim of the Tax department is to develop close relations
with the sales teams and, where necessary, with their
external partners, in order to provide clear and relevant
guidance on tax issues, including the identification of risks
and opportunities where appropriate. If necessary, it calls
on external consultants. The Tax department participates
in strategic operations, particularly acquisitions, from their
planning to their implementation, to ensure that appropriate
treatment is applied consistently. In addition, it implements
all the processes and controls necessary to ensure the proper
application of Dassault Systèmes’ tax policy.
2.6.5
Maintaining an Appropriate Vigilance Plan
2
Dassault Systèmes is committed to conducting its business
in compliance with the laws in force in the countries in which
it operates and in accordance with international standards.
In accordance with the French law of March 27, 2017 relating
to the duty of vigilance of parent companies and order‑giving
companies, Dassault Systèmes draws up and implements
a Vigilance Plan (the “Vigilance Plan”) in the three required
areas: Human Rights and Fundamental Freedoms, Health
and safety of people, and Environment.
The content of the Vigilance Plan meets the 5
requirements:
legal
— risk mapping;
— assessments of the sphere of influence, in particular of
suppliers;
— the use of specialized due diligence databases and,
where appropriate, a risk assessment method dedicated
to Human Rights issues, as well as monitoring for the
detection of high‑risk situations;
— control points set up by the Internal Audit department.
is
implemented by
the various
The Vigilance Plan
stakeholders within the Company, primarily the Business
Ethics and Compliance department, the Human Resources
department and
is
monitored and assessed by a Duty of Vigilance Steering
Committee, made up of members of these departments
and the Internal Audit Department, and reviewed by the
Company’s Risk Management Steering Committee at least
once a year.
the Procurement department.
It
— measures to prevent and mitigate the risks identified in
2.6.5.1
Report on the Implementation of the
2023 Vigilance Plan
the mapping;
— Whistleblowing procedure;
— and a system for monitoring measures and evaluating
their effectiveness.
Vigilance measures,
to
Dassault Systèmes’ risk profile, can be implemented in the
short and medium term.
and proportionate
adapted
Dassault Systèmes’ vigilance is also exercised through its
recurring and continuous actions related to:
— raising employee awareness, such as monitoring and
updating online training courses on ethics, compliance,
health and safety, crisis management, sustainable
development and publications on its 3DEXPERIENCE
platform;
— the Company’s Whistleblowing procedure;
The Vigilance Plan for 2023 included measures to be
implemented in the short and medium term, as part of a
structured approach. The year’s key achievements were as
follows:
— in the field of health and safety, the Company
has continued to develop its policy and charter of
commitments in these areas. As part of the partnership
signed in 2022 with the Cancer@Work public‑interest
association to help reconcile illness and work, Dassault
Systèmes continued to develop numerous actions for
its employees through the “We Care for Your Health”
initiative (notably to prevent breast cancer and male
cancers). In 2023, the Company was awarded the
Cancer@Work level 3 label for a three‑year period. It
published two internal guides in France, “We Care for
Your Health”: one for employees who are ill, the other
for managers. The Company has continued to raise
awareness of first aid through its dedicated online
training course (already taken by over 4,000 employees);
the procedure for responding to crisis situations has
been improved; health, safety and security issues at
sites were reviewed once again this year, in the form
of a questionnaire sent to site managers (on all these
subjects, see also paragraph 2.3.3 “Preserving Health,
Safety and Well‑Being in the Workplace”);
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— the Company’s Whistleblowing procedure has been
revised to ensure compliance with new regulations
on the protection of whistleblowers (the French law
of March 21, 2022 and its implementing decree of
transposing European Directive
October 3, 2022
2019/1937 of October 23, 2019). The Company
now has a clearer, more pedagogical procedure and
additional means for reporting to its Ethics Committee,
available on www.3ds.com: an online
form and
toll‑free telephone numbers for each country in which
it operates. Whistleblowers can report to the Ethics
Committee anonymously, and Dassault Systèmes
guarantees the confidentiality of the whistleblower’s
identity and the absence of reprisals for any report
made in good faith. The Whistleblowing procedure has
been submitted to employee representative bodies
in France for consultation. Its worldwide deployment
within Dassault Systèmes
is scheduled to continue
in 2024, with, if needed, a local adaptation to ensure its
compliance with national transposition of the European
Directive on the protection of whistleblowers and local
regulations applicable with regards to the fight against
discrimination and harassment;
— as part of the Company’s monitoring of legislation
relating to Human Rights, Dassault Systèmes has
continued to follow potential developments arising from
the draft European Corporate Sustainability Due Diligence
Directive. The necessary steps have been taken to ensure
the compliance of Dassault Systèmes Deutschland AG
with the German law on due diligence in the upstream
value chain (Lieferkettensorgfaltspflichtengesetz – LkSG)
from January 1er 2024;
— in terms of the Company’s best practices in terms of
Human Rights and Fundamental Freedoms, the risk
assessment method dedicated to Human Rights and
Fundamental Freedoms issues has been reviewed and
published on the Company’s 3DEXPERIENCE platform;
— deployment of the Sustainable Charter with Suppliers, a
reference document for the prevention of serious breaches
of the duty of vigilance, continued (see paragraphs 2.6.1
“Promoting Strong Business Ethics” and 2.6.3 “Committed
to respecting Human Rights and Fundamental Freedoms”);
— the Company has continued to pursue its environmental
initiatives (see paragraphs 2.1 “Sustainability Governance”
and 2.5.2.2 “Climate Strategy”).
The Due Diligence Steering Committee met three times in
2023. It reviewed its mapping of the Company’s duty of
vigilance risks in the light of its knowledge of the Company’s
situation, as well as its consistency with the risks identified
and assessed by the Company’s Risk Management Steering
Committee
(see paragraphs 2.2 “Social, Societal and
Environmental Risks” and 5.2 “Enterprise Risk Management
and Internal Control Procedures”).
2.6.5.2
2024 Vigilance Plan
The risk assessment, and in particular the assessment carried
out in 2020 at global level and reviewed in 2023 by the Due
Diligence Steering Committee, revealed the limited nature
of the risks of serious harm in the three areas of the duty
of vigilance, which could result both from the Company’s
activities and its business model (see Chapter 1 “Presentation
of the Company”), and from those of its suppliers and
subcontractors. Indeed, the intangible nature of the software
publisher’s business
implies virtually no assembly of
products from supplier chains. However, Dassault Systèmes
is using this mapping to further strengthen its responsible
procurement approach (see paragraph 2.5.2.4 “Resource Use
and Climate Action Plans”).
In 2024, the plan’s measures continue to address the risks
identified in the mapping, in particular:
— continuing to review and to update the Whistleblowing
procedure to ensure
its compliance with national
transpositions of European Directive 2019/1937 on the
protection of whistleblowers, and where applicable
local anti‑discrimination and anti‑harassment
with
regulations; rolling out new versions in the countries
concerned;
— monitoring of (i) developments arising from the draft
European Corporate Sustainability Due Diligence
Directive and (ii) legislation on Human Rights around the
world (United Kingdom Commercial Organisations and
Public Authorities Act (draft), Australian Modern Slavery
Act, German Supply Chain Act, etc.);
— continuing to develop the Company’s best practices in
terms of Human Rights and Fundamental Freedoms
(raising awareness among employees, communicating
the risk assessment method in these areas, reinforcing
the traceability of reporting
linked to third‑party
assessments, etc.);
— finalizing and deploying a health policy and a charter
of commitments in this area, and raising awareness
of health and safety risks among the Company’s site
managers;
— the continuation of the “We care For Your Health”
program, particularly in international markets, to improve
work‑life balance;
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— the fight against discrimination and harassment, by
continuing to promote training in this area, in order to
raise employees’ awareness;
— continued deployment of
the Sustainable Charter
with Suppliers via clauses in the Company’s standard
contracts, and updating of the global procurement policy.
In addition, the mapping of duty of care risks will be
subject to methodological updates and ongoing review in
line with the Company’s risk management approach (see
paragraphs 2.2 “Social, Societal and Environmental Risks”
and 5.2 “Enterprise Risk Management and Internal Control
Procedures”).
2.7
Environmental, Social and Governance Metrics
2
Dassault Systèmes is committed to improving the impact of
its environmental, social, societal and governance practices.
This paragraph brings together all the indicators used to
measure the Company’s ESG performance.
In line with its obligations, Dassault Systèmes also presents
the indicators of the EU Taxonomy, one of which has been
integrated into the sustainability objectives set as part of
its sustainable development strategy: 70% of the turnover
generated by 2027 must be eligible for this regulation.
2.7.1
Environmental, Social, Societal and Governance Metrics
2.7.1.1
Sustainable Development Strategy
Dassault Systèmes’ sustainable development strategy
in
is organized
quantitative measurable objectives:
intothree pillars, which are analyzed
— designing
solutions enabling Dassault Systèmes’
customers to reduce their environmental footprint;
— committing to environmentally Sustainable Operations;
— developing human capital in respect of diversity and
ethics.
Progress towards the achievement of these objectives is
reviewed regularly by the Sustainability Steering Committee,
the Executive Committee and the lead director for sustainable
matters within Dassault Systèmes’ Board of Directors.
Dassault Systèmes has drawn up a plan to reduce its
greenhouse gas emissions, approved by the Science‑Based
Targets initiative as being aligned with a 1.5°C pathway
(Scopes 1 and 2) and in line with current best practice
(Scope 3). These emission reduction targets, for 2025 or
2027 depending on the Scope concerned, were revised in
2022, notably to cover a larger scope, and then validated in
2023 by SBTi.
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The charts below show the indicators of Dassault Systèmes grouped and presented according to these three pillars:
Designing Solutions enabling Customers to reduce their Environmental Footprint
2023
2022
2021
Objective
2027
EU Taxonomy
Eligible Turnover
Aligned Turnover
67.3%
33.4%
65.8%
‑
68.0% (1)
‑
70%
‑
(1) The percentage of eligible turnover for 2021 has been recalculated using the methodology applicable in 2023, as described in paragraph 2.8 “Reporting Methodology”, to
enable a comparison with an identical scope.
In 2023, Dassault Systèmes publishes an eligible and aligned turnover for the EU Taxonomy amounting respectively to 67.3%
and 33.4%. The methodology used for these calculations is described in paragraph 2.7.2 “Key Performance Indicators for the
EU Taxonomy Regulation”.
Committing to environmentally
Sustainable Operations
Environment
Scopes 1 & 2 GHG emissions (1)
Scope 3 GHG emissions (1)
% of suppliers w/science‑based targets
set (2)
2023
2022
2021
2019
7,370
37,136
7,801
37,256
16,450
11,990
25,098
77,595
(35%) (1)
(20%) (1)
%
Objective
2025‑2027
tCO2‑eq
16,314
62,076
37%
26%
23%
‑
50% (2)
‑
(2) 2027 Target, submitted at the end of 2022, covering an expanded scope compared to the initial submission and validated in 2023 by the Science‑Based Targets initiative.
(3) 2025 Target, submitted at the end of 2022, covering an expanded scope compared to the initial submission and validated in 2023 by the Science‑Based Targets initiative.
See all details concerning environmental indicators in paragraph 2.5 “Environmental Responsibility”.
Developing Human Capital in Respect of Diversity and Ethics
2023
2022
2021
Objective
2025‑2027
Gender Diversity
Women in the Executive team
Women among People managers
Employee Engagement
Employees pride and satisfaction (3)
Ethics and Compliance
Employees trained on ethics and compliance (4)
38.5%
24.5%
38.5%
22.6%
38.5%
21.2%
40% (1)
30% (2)
80.9%
81.7%
79.8%
98.9%
99.2%
98.6%
85%
95%
(1) Objective 2027 of women in the Executive team is of the order of 40%, only applicable to the extent permissible under local and national laws.
(2) Objective 2027 only applicable to the extent permissible under local and national laws.
(3) Objective 2025, percentage measured by an annual satisfaction survey.
(4) Objective 2025, average percentage of permanent employees who completed mandatory trainings on the Code of Business Conduct, Personal Data Protection and Anti‑Corruption.
See further details in paragraphs 2.3 “Social Responsibility” and 2.6 “Business Ethics and Vigilance Plan”.
In addition to these priority actions as described above,
the Board of Directors has included a multi‑criterai ESG
indicator in the performance criteria used to determine the
annual variable compensation of its Chief Executive Officer
and Executive Committee members (see paragraphs 5.1.3
“Compensation Policy for Corporate Officers (Mandataires
Sociaux)” and 5.1.4 “Summary of the Compensation
and Benefits due to Corporate Officers”). The vesting of
performance shares allocated in 2024 to the Chief Executive
Officer (and to Dassault Systèmes Executives and employees
beneficiaries) will also depend on this indicator.
136
indicator
is based on four criteria
relating to
This
employees’ commitment, the proportion of women
in
senior management positions and executive bodies, the
percentage of Turnvoer eligible to the EU Taxonomy, and
the carbon footprint in line with science‑based emission
reduction targets (SBTi). ESG criteria and associated targets
are reviewed annually to ensure consistency with Dassault
Systèmes’ ESG strategy for 2025 or 2027.
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
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Environmental, Social and Governance Metrics
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2.7.1.2
Ratings and Awards
Dassault Systèmes is recognized worldwide for its environmental, social and governance (ESG) actions, as evidenced by its
ratings and rankings in 2023, summarized below:
2
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2.7.1.3
Environmental, Social, Societal and Governance Performance Indicators
The tables below detail Dassault Systèmes’ main social, societal, environmental and governance responsibility indicators and
targets, in addition to those followed as part of its sustainable development strategy.
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
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Environmental, Social and Governance Metrics
2.7.1.3.1
Social, Societal and Governance Indicators
HUMAN CAPITAL (SUSTAINABILITY ACCOUNTING STANDARDS BOARD)
Company Organization and Workforce
Headcount
Europe
Americas
Asia
R&D
Sales, Marketing and Services
Company’s General Administration
Headcount growth
Permanent employees
New joiners
Recruitment
Acquisition
Countries of operation
2.3.1 Attracting Talented Individuals
Job offers filled
Job offers filled under permanent contracts
Job offers filled by referral
Conversion of interns and apprentices (2)
Job offers filled by internal hires (3)
2.3.2 Developing Knowledge and Know‑how
Employees who received training
Average number of training hours (4)
Employees certified to Company’s knowledge and values
People managers certified
Employees trained in cybersecurity
Employees trained on ethics and compliance (5)
2.3.3 Preserving Health, Safety and Well‑Being in the Workplace
Absenteeism – Illness
Absenteeism – Occupational accidents
Absenteeism – Maternity and Paternity Leave
Satisfaction Work Environment (7)
Permanent employees working part‑time
Permanent employees benefiting from a leave of absence (8)
2.3.4 Rewarding and Retaining Talents
Employees granted with Long‑Term Incentive (9)
Employees subscribing to shareholding program (10)
Employees covered by independent employees representation in Europe
Employees covered by collective bargaining agreement in Europe
Average seniority (in years)
Employee voluntary turnover
Employee total turnover
Employees pride and satisfaction (11)
2023
Workforce
in‑scope (1)
Values
2022
2021
Objective
2025
23,811
100%
39%
100%
28%
100%
33%
100%
41%
100%
46%
100%
13%
100%
5.7%
100%
99.0%
100%
100%
3,419
100% 98.0%
2.0%
100%
43
100%
95.3%
95.3%
95.3%
95.3%
95.3%
95.3%
95.3%
95.3%
95.3%
95.3%
95.3%
93.3%
93.3%
93.3%
134 sites
100%
100%
96.4%
96.6%
37%
37%
100%
100%
100%
96.4%
3,594
96.4%
15.7%
28.7%
28.8%
98.7%
23.1
92.0%
82.0%
99.5%
98.9%
2.2%
0,0% (6)
0.7%
75.6%
2.0%
1.5%
12.0%
33.8%
98.1%
83.8%
8.2
6.1%
7.3%
80.9%
22,523
38%
29%
33%
41%
46%
13%
9.9%
99.0%
5,022
97.2%
2.8%
43
4,722
97.4%
18.7%
29.6%
26%
98.7%
27.9
90.5%
80.8%
98.6%
99.2%
2.1%
0.01% (6)
0.6%
77.6%
2.0%
1.4%
12.0%
‑
97.9%
80.4%
8.1
10.8%
12.0%
81.7%
20,496
39%
29%
32%
41%
46%
13%
3.6%
99.0%
3,629
99.4%
0.6%
42
3,875
96.4%
17.5%
28.6%
29.8%
90.9%
28.9
83.1%
81.8%
‑
98.6%
2.2%
0.02%
0.7%
77.5%
2.3%
1.8%
11.3%
55.4%
97.3%
79.7%
8.3
10.8%
12.9%
79.8%
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
20%
‑
30%
‑
‑
‑
‑
‑
95%
< 4%
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
85%
(1) The scope refers to total headcount excluding companies or countries as detailed in paragraph 2.8 “Reporting Methodology”.
(2) Percentage of conversion, under permanent or fixed‑term contracts, of the total number of interns and apprentices, whether they continue their educational training or
are graduated.
(3) Percentage of job offers requiring at least three years’ professional experience filled with internal candidates.
(4) For employees who received training.
(5) Average percentage of permanent employees who completed mandatory trainings on Code of Business Conduct, Personal Data Protection and Anti‑Corruption.
(6) Corresponding to a lost‑time injury rate of 0.1 estimated on the basis of 200,000 hours worked.
(7) Satisfaction rate of the employee experience on the Company’s sites measured by an annual satisfaction survey.
(8)
(9) Excluding members of the Executive team.
(10) Percentage of eligible employees subscribing to the employee shareholding program.
(11) Percentage measured by an annual satisfaction survey.
Including end‑of‑career leave.
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2023
Workforce
in‑scope (1)
Values
2022
2021
Objective
2025/207
2.3.5 Promoting Diversity and Inclusion
Gender diversity
Women on Board of Directors (2)
Women in the Executive team
Women among People managers
Women in the Company
R&D
Sales, Marketing and Services
Company’s General Administration
Women in new joiners
Gender Equality Index (5)
Disability
Employment of people with disabilities (6)
Country of Origin
Number of countries of origin
SOCIAL CAPITAL (SUSTAINABILITY ACCOUNTING STANDARDS BOARD)
2.4.1 Secure Data and Systems
Employees trained in cybersecurity (7)
2.4.2 Protecting personal data
Employees trained on Personal Data Protection (7)
2.4.3 Innovate for a Sustainable Future
Millions of students using or having used one or more technologies (8)
2.4.4 Philanthropy: Committing to Education and Research
Number of new projects supported by La Fondation Dassault Systèmes
100%
100%
100%
100%
100%
100%
100% 46.7%
33.3%
100%
96/100
18.6%
50%
50%
38.5%
38.5%
22.6%
24.5%
28.1%
28.7%
22.6%
22.3%
29.2% 28.8%
50%
38.5%
21.2%
27.5%
22.1%
27.4%
43.8% 44.4%
34.9%
32.5%
94/100
95/100
18.6%
3.1%
2.7%
2.9%
100%
142
136
135
95.3%
99.5%
98.6%
‑
95.3%
98.5%
99.4%
98.6%
‑
‑
8.2
52
8.3
51
6.8
38
LEADERSHIP AND GOVERNANCE (SUSTAINABILITY ACCOUNTING STANDARDS BOARD)
2.6 Business Ethics and Vigilance Plan
Employees trained on the Code of Business Conduct (7)
Employees trained on Anti‑Corruption
95.3%
95.3%
98.6%
99.5%
98.6%
99.5%
98.8%
98.4%
(1) The scope refers to total headcount excluding companies or countries as detailed in paragraph 2.8 “Reporting Methodology”.
(2) Excluding Directors representing employees, not accounted in accordance with the law and the AFEP‑MEDEF Code.
(3) Objective 2027 of women in the Executive team is of the order of 40%, only applicable to the extent permissible under local and national laws.
(4) Objective 2027, only applicable to the extent permissible under local and national laws.
(5) The Gender Equality Index (Index Égalité Femmes‑Hommes) reported covers Dassault Systèmes SE. It is calculated each year in respect of the previous year.
(6) The employment rate of people with disabilities reported covers Dassault Systèmes SE. It is calculated each year in respect of the previous year.
(7) Percentage of permanent employees who completed mandatory trainings.
(8) Number of students using or having used one or more of the Company’s technologies in an initial or lifelong training context.
‑
40% (3)
30% (4)
‑
‑
‑
‑
‑
‑
2
‑
‑
‑
‑
‑
‑
‑
‑
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Environmental, Social and Governance Metrics
2.7.1.3.2
Environmental Indicators
Environment (Sustainability Accounting Standards Board)
Carbon intensity – in tCO2‑eq (2)
Scope 1 – in tCO2‑eq
Natural Gas
Fuel
Refrigerant
Company cars
Scope 2 – in tCO2‑eq
Electricity (“Market based”)
Electricity (“Location based”)
Urban steam and cold
Scope 3 – in tCO2‑eq
Business travel
Employees’ commute
Capital goods
Goods and services
Electric and electronic waste
Ordinary waste(4)
Upstream emissions(5)
% of suppliers in emissions w/science‑based targets set (7)
Total – in tCO2‑eq
Scope 3 – Use of goods sold (customers “on premise”) –
in tCO2‑eq
2.5.3 Water and Marine Resources
Consumption in m 3
2.5.4 Biodiversity and Ecosystems
% of certified workplaces(9)
2.5.5 Circular Economy and Resource use
% of workplaces with sorting facilities for ordinary waste (9)
Total weight of waste in tons
From which Weight of ordinary waste in tons
From which Weight of collected electric and electronic waste
(WEEE) in tons(9)
% of electric and electronic waste recycled (WEEE)(9)
2023
Workforce
in‑scope (1)
Value
2022
2021
2019
Target
2025‑2027
8.1
98%
4,178
87%
644
87%
61
87%
1,222
87%
2,251
87%
3,193
100%
2,808
100%
21,094
100%
87%
384
99% 179,523
21,012
96%
16,125
99%
40,794
99%
97,471
99%
115
87%
1,704
99%
2,303
100%
37%
‑
98% 186,894
8.2
4,476
821
384
522
2,749
3,324
2,870
22,929
455
168,709
21,464
15,792
35,821
91,399
95
1,620
2,519
26%
176,510
‑
3,950
748
197
1,032
1,972
12,500
12,029
21,056
472
123,269
7,367
4,624
27,183
79,615
27
1,473
2,980
‑
139,719
13.5
5,403
825
‑
315
4,263
19,695
19,153
22,338
542
206,044
50,982
26,613
27,491
97,084
77
1,441
2,356
‑
231,142
495,039 465,870(8) 463,487(8)
100% 323,100
87%
88%
73%
69%
53%
87%
99%
99%
87%
87%
89%
931.3
874
57.3
99%
89%
1,321.5
1,274
47.5
99%
88%
24.3
‑
24.3
98%
84%
38.9
‑
38.9
99%
(35%) (3)
‑
(20%) (3)
‑
‑
50%(7)
‑
‑
‑
‑
‑
‑
(1) The scope of reporting refers to the total workforce excluding companies or countries as described in paragraph 2.8 “Reporting Methodology”.
(2) Carbon intensity takes into account greenhouse gas emissions from Scopes 1, 2 and 3, excluding emissions linked to the use of solutions by clients, in relation to the
average workforce covered.
In line with the Science‑Based Targets initiative, this target has been set with a 2027 horizon with a 2019 baseline.
(3)
(4) Emissions relating to ordinary waste are estimated using an average emission factor per employee.
(5) Upstream emissions refer to fuel and energy activities.
(6)
In accordance with the Science‑Based Targets initiative, this is the percentage of suppliers, by weight of emissions, including products, services and capital goods
purchased, that are themselves committed to a science‑based emissions reduction pathway.
In line with the Science‑Based Targets initiative, this target has been set with a 2025 horizon.
(7)
(8) Where available, these estimates are calculated based on emission factors updated for the corresponding year.
(9) The data reported and related to e‑waste, share of certified workplaces and sorting equipment for ordinary waste, only covers sites with more than 50 employees, hence
the reduced coverage rate.
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Other Climate Indicators
2023
2022
Carbon intensity in millions of euros of Revenue IFRS (tCO2‑eq/M€)
Carbon intensity per employee (tCO2‑eq/employee) (1)
Energy consumption (MWh)
Number of EACs acquired during the year
Share of renewable energy (2)
Share of renewable electricity
Percentage of ISO 50001‑certified sites
Percentage of workforce covered by ISO 50001 certified sites
Share of suppliers by weight of GHG emissions committed to a science‑based reduction approach
(SBTi target)
Quantity of carbon credits acquired during the year (tCO2‑eq)
31.4
8.1
71,218
31,102
84%
89%
66.7%
65.3%
37%
673
31.2
8.2
82,766
37,000
84%
90%
44%
51%
26%
671
2
(1) Carbon intensity per employee is estimated on the basis of an average annual headcount. For 2022 and 2023, it is 21,580 and 23,199 respectively.
(2) Covers only sites with more than 50 employees. The calculation methodology will be reviewed in 2024 as part of the CSRD sustainability reporting.
2.7.2
Key Performance Indicators of the EU Taxonomy Regulation
innovation
twins, as
catalysts, enable
Virtual
the
understanding of the entire life cycle of products, processes
and systems they represent. They offer a more holistic,
factual and dynamic vision of the said products, processes
and systems they represent, with the aim to enhance their
sustainability potential, particularly with regards to the
objectives of climate change mitigation and transition toward
circular economy.
2.7.2.1
General Context and Scope of
Application for 2023
In 2018, against a backdrop of heightened climate risk,
the European Commission launched an Action Plan for
Financing Sustainable Growth, setting a
framework
encouraging sustainable investment in the European Union.
In June 2020, the European Parliament passed Regulation
(EU) 2020/852, known as the EU Taxonomy (Regulation).
Several delegated acts followed. This new regulation applies
to Dassault Systèmes, as a listed company registered in the
European Union and exceeding certain thresholds set by the
texts.
The EU Taxonomy is a system for classifying economic
activities according to their contribution to six environmental
objectives:
— climate change mitigation;
— climate change adaptation;
— the sustainable use and protection of aquatic and marine
resources;
— the transition to a circular economy;
— pollution prevention and control;
— the protection and restoration of biodiversity and
ecosystems.
For the first two years of application, 2021 and 2022, only
the first two objectives, which specifically concern climate
change, have been the subject of publication of financial
information in the form of indicators. The following four
objectives, unrelated to climate change, are subject to
publication from2023 on, in application of the Delegated Act
of June 27, 2023.
The Climate Delegated Act specifies the activities, classified
by economic sector, falling within the scope of the EU
Taxonomy, and more specifically the technical examination
criteria for qualifying the substantial contribution of an
activity to one of the above‑mentioned environmental
objectives and the absence of prejudice to the other
objectives.
The Delegated Act of July 6, 2021, which supplements
Article 8 of the initial Regulation, defines the content,
expected
information and calculation method for the
indicators associated with these publications. Several
additional texts have been published to provide clarification
in 2022, notably the two
on these Delegated Acts
question‑and‑answer documents published on December 19,
2022 by the European Commission, specifying the timetable
for application, the methods for calculating the various
indicators and applying certain technical review criteria, as
well as the requirement for certification by an independent
third‑party verifier.
For the first year of application of the EU Taxonomy, i.e.
the financial year ending December 31, 2021, the required
limited respectively to the share of
indicators were
turnover, capital expenditure and operating expenditure
associated with eligible economic activities as defined by the
Regulation, with no comparative data with 2020.
From the second year of application, i.e. the financial
year ending December 31, 2022, the required indicators
corresponded to the share of turnover, capital expenditure
and operating expenditure associated with eligible and
aligned economic activities as defined by the EU Taxonomy,
with no comparative data with 2021, as regards aligned
turnover, as specified by the Regulation, more specifically the
Delegated Act of July 6, 2021 mentioned above.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
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Environmental, Social and Governance Metrics
For the 2023 financial year, the required
indicators
correspond to the share of turnover, capital expenditure and
operating expenditure that are eligible and aligned, with
comparative data with 2022 for the two objectives related
to climate change. Concerning the four objectives introduced
by the delegated act of June 27, 2023, only eligibility data is
required.
An economic activity is eligible when it is explicitly described
in the list included at this stage in the Climate Delegated
Act, and is likely to make a substantial contribution to each
environmental objective. Activities are considered to be
aligned with the EU Taxonomy when they meet the technical
review criteria and verification conditions, which are precise
conditions and performance thresholds for demonstrating
substantial contribution
to environmental objectives,
and when they do not undermine other environmental
objectives and meet the Minimum Guarantees specified in
the Regulation.
2.7.2.2
Sustainability Levers
Sustainability levers represent areas of improvement for
customers, enabled by Dassault Systèmes software, to
implement
reduce their greenhouse gas emissions and
circularity strategies. The development of these
levers
takes into account the recommendations and structure of
the EU Taxonomy, and was the subject of collaboration
between experts from each industry at Dassault Systèmes
and independent third parties. These levers have enabled
the Company to quantify the contribution of solutions to
the climate change mitigation objective and to identify the
associated aligned turnover. The collection and analysis
of use cases representative of the Company’s activities
has enabled to adapt and strengthen these levers, and
to specify them for each of the Company’s customer
sectors. In all, some twenty levers have been developed to
justify the contribution of Dassault Systèmes’ solutions
to the objective of mitigating climate change, for the three
Dassault Systèmes sectors. Some of these levers are relevant
to both climate and circular economy issues.
Sustainability levers – Manufacturing Industries sector
Improve operations during the product design and engineering phases
Select less carbon‑intensive alternative materials in smaller quantities
Purchasing less carbon‑intensive materials or compounds from alternative suppliers
Reduce the energy required during the production phase
Reduce material waste during the production phase
Improve transport and distribution of semi‑finished and finished products
Reduce a product’s energy consumption during its use phase
Extending a product’s lifespan
Change the nature of the energy used by the product during its use phase (e.g. electrification)
Apply the Reduce, Reuse, Recycle, Renovate. (RRRR) at the end of the product life cycle
Sustainability levers – Infrastructure & Cities sector
Improve the efficiency of infrastructure design, engineering and construction activities
Enabling the development of low‑carbon materials and processes
Identify alternative suppliers for low‑carbon materials
Reduce the amount of materials and natural resources consumed
Optimizing the energy consumption of operating infrastructures
Facilitate changes in the type of energy used by infrastructures during the operations phase (e.g.
electrification, H², ENR, etc.).
Optimizing transport and logistics
Extending the lifespan of infrastructures
Optimizing dismantling
Preserving the local environment
Sustainability levers – Life Sciences & Healthcare sector
Reducing the carbon footprint of clinical trials
142
Climate change
mitigation
Transition
to a circular
economy
Climate change
mitigation
Transition
to a circular
economy
Climate change
mitigation
Transition
to a circular
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Environmental, Social and Governance Metrics
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While the levers were initially designed to demonstrate the
ability of Dassault Systèmes’ solutions to mitigate climate
change and meet the requirements of the EU Taxonomy,
some of the levers also address circularity issues and will be
developed further in paragraph 2.5.5 “Circular Economy and
Resource Use”.
is gradually being
This analysis
into all
Dassault Systèmes operations. From the offer creation
process to portfolio optimization and the value proposition,
sustainability levers are used to qualify and highlight the
environmental benefits provided by the Company’s solutions.
integrated
2.7.2.3
Eligible and Aligned Turnover (Software & Services) as of December 31, 2023
The chart below shows the indicators required by the EU Taxonomy: turnover, operating expenditure and capital expenditure,
eligible and aligned.
2
As regards eligibility of turnover for the EU Taxonomy, the
strategy implemented in 2022 has borne fruit. Eligible
in 2023, up 1.5% on 2022.
turnover reached 67.3%
Moreover, aligned turnover reached 33.4% in 2023. The
method used is presented in paragraph 2.8.3 “EU Taxonomy
Indicators Methodology”.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
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Environmental, Social and Governance Metrics
Economic activities
A1. Eligible activities aligned with EU Taxonomy
CCM (8.2) Data‑driven solutions for GHG emissions reductions
A2. Eligible activities not aligned with EU Taxonomy
CCM (8.2) Data‑driven solutions for GHG emissions reductions
CE (4.1) Provision of IT/OT data‑driven solutions
TOTAL FOR ELIGIBLE ACTIVITIES (A1 + A2)
B. EU Taxonomy non‑eligible activities
Turnover of EU Taxonomy‑non‑eligible activities
TOTAL (A + B) (1)
(1) The turnover split is detailed in the paragraph 4.1.1 “Consolidated Financial Statements”.
CCM (1)
CE (2)
(2) CCM for Climate change mitigation.
(3) CE for Circular Economy.
Turnover
(in millions
of euros) % of Turnover
1,989
1,989
2,017
2,017
4,006
1,945
1,945
5,951
33.4%
33.4%
33.9%
33.9%
67.3%
32.7%
32.7%
100.0%
Proportion of Turnover/
Total Turnover
EU Taxonomy‑
aligned per
objective
EU Taxonomy‑
eligible per
objective
33.4%
0.0%
67.3%
58.7%
2.7.2.4
Eligible and Aligned Operating Expenditure as of December 31, 2023
Operating Expenditure carried forward relate to the Climate
change mitigation objective (“CCM”).
Eligible and aligned operating expenditure correspond to
the reduced proportion of Dassault Systèmes’ operating
expenditure that are respectively eligible and aligned to the
EU Taxonomy as detailed in paragraph 2.8.3 “EU Taxonomy
Indicators Methodology”.
The table below shows, for 2023, the proportion of
operating expenditure that are considered eligible and
aligned, as contributing to the climate change mitigation
objective. They correspond, on the one hand, to operating
expenditure linked to assets or processes associated with the
Company’s economic activities that are eligible and aligned
with the EU Taxonomy, specifically for data‑driven solutions
for GHG emissions reduction (activity CCM 8.2) and, on the
other hand, to operating expenditure linked to production
purchases of eligible and aligned economic activities, in this
case activity CCM 8.1 Data processing, hosting and related
activities.
Economic activities
A1. Eligible activities aligned with EU Taxonomy
CCM (8.2) Data‑driven solutions for GHG emissions reductions
A2. Eligible activities not aligned with EU Taxonomy
CCM (8.1) Data processing, hosting and related activities
CCM (8.2) Data‑driven solutions for GHG emissions reductions
TOTAL FOR ELIGIBLE ACTIVITIES (A1 + A2)
B. EU Taxonomy non‑eligible activities
Operating Expenditure of EU Taxonomy‑non‑eligible activities
TOTAL (A + B)
144
Operating
Expenditure
(in millions
of euros)
% of Operating
Expenditure
291
291
350
29
321
641
674
674
1,314
22.1%
22.1%
26.6%
2.2%
24.4%
48.8%
51.2%
51.2%
100.0%
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Environmental, Social and Governance Metrics
2
Dassault Systèmes’ operating expenditure considered eligible
and unaligned include, among others, operating expenditure
relating to data processing activities hosted in colocation
data centers and by cloud service providers.
contribution
None of these activities is considered aligned in view of
the particularly stringent requirements of the Regulation’s
substantial
the
implementation of the “expected practices” of the European
Code of Conduct for data centers and their regular audit by
an independent third party, as well as the global warming
potential of the refrigerants used.
particular
criteria,
in
2.7.2.5
Eligible and Aligned Capital Expenditure as of December 31, 2023
Capital expenditure carried forward relate to the Climate
change mitigation objective (“CCM”).
Eligible and aligned capital expenditure correspond to the
proportion of Dassault Systèmes’ capital expenditure that
are respectively eligible and aligned to the EU Taxonomy
as detailed in paragraph 2.8.3 “EU Taxonomy Iindicators
Methodology”.
The table below shows, for 2023, the proportion of capital
expenditure that is considered eligible and aligned, as
contributing to the climate change mitigation objective.
2
to
investments
In 2023, the Company’s capital expenditure correspond
mainly
(i.e.
independently of Dassault Systèmes’ activities) in connection
with buildings acquisition and ownership (activity CCM 7.7)
and data processing, hosting and related activities (activity
CCM 8.1).
individually
analyzed
Economic activities
A1. Eligible activities aligned with EU Taxonomy
CCM (7.7) Acquisition and ownership of buildings
A2. Eligible activities not aligned with EU Taxonomy
CCM (6.5) Transport by motorbikes, passenger cars and light commercial vehicles
CCM (7.1) Construction of new buildings
CCM (7.2) Renovation of existing buildings
CCM (7.3) Installation, maintenance and repair of energy efficiency equipment
CCM (7.7) Acquisition and ownership of buildings
CCM (8.1) Data processing, hosting and related activities
TOTAL FOR ELIGIBLE ACTIVITIES (A1 + A2)
B. EU Taxonomy non‑eligible activities
Capital Expenditure of EU Taxonomy‑non‑eligible activities
TOTAL (A + B) (1)
In 2023, Dassault Systèmes is deferring a real estate
investment aligned with activity CCM 7.7, corresponding to
the extension of its 3DS Paris Campus in Vélizy‑Villacoublay
(France).
On the other hand, no aligned property
investments
are reported under activities 7.2 and 7.3, which can be
explained by the Company’s reliance on leasing. As a
result, Dassault Systèmes generally only carries out interior
refurbishment work, with no specific focus on energy
performance, which is at the heart of the criteria for making
a substantial contribution to the EU Taxonomy.
A large proportion of Dassault Systèmes’ capital expenditure
is focused on IT equipment and associated software. Nearly
half of these investments are made for the needs of the
Capital
Expenditure
(in millions of
euros)
% of Capital
Expenditure
70
70
174
5
11
29
0.1
85
44
244
76
76
320
21.8%
21.8%
54.4%
1.6%
3.3%
9.1%
0.0%
26.5%
13.9%
76.2%
23.8%
23.8%
100%
Data processing business, notably in colocation data centers
(activity CCM 8.1). As explained in the previous paragraph,
no data centers are considered to be aligned in view of the
particularly stringent requirements of the Regulation’s
substantial
the
implementation of the “expected practices” of the European
Code of Conduct for data centers and their regular audit by
an independent third party, as well as the global warming
potential of the refrigerants used.
contribution
particular
criteria,
in
Consequently, no capital expenditure associated with this
activity are considered aligned. Considering only the criterion
of signing the European Data Center Code of Conduct charter
for data center suppliers used by Dassault Systèmes, the
proportion of aligned capital expenditure would be increased
by 28.2 million euros, or 8.8% of total capital expenditure.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
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Reporting Methodology
2.8
Reporting Methodology
With the exception of the EU Taxonomy, whose methodology
is presented in paragraph 2.8.3 “EU Taxonomy Indicators
Methodology”, social, societal and environmental reporting
methodologies are detailed in reporting protocols, which
define the methodology for collecting and calculating
information, as well as the scope of data collection. To
enhance the reliability of the reporting process, these
internal protocols include the definitions and calculation rules
for each indicator, and are updated annually. Data reliability
checks are carried out at the time of consolidation, as well
as during the year, particularly with regard to the analysis of
variances from previous periods.
The target reporting scope covers Dassault Systèmes SE
and all companies over 50% owned, as well as the three
geographic zones in which the Company operates: Europe
(including the Europe Middle East Africa perimeter), the
Americas and Asia. However, for certain indicators, the
scope covered may be more limited. For example, companies
acquired during the period are generally excluded from the
reporting perimeter, both for the current year and for the
year following the acquisition; the same applies to companies
deemed immaterial. Indicators have been selected on the
basis of social, societal and environmental risk mapping.
Headcount data are calculated on a full‑time equivalent
(FTE) basis, corresponding to a headcount calculated on the
basis of a ratio of “hours worked/standard full‑time working
hours” and according to a definition jointly defined and
shared by the Human Resources and Finance teams. The
workforce includes employees on permanent and fixed‑term
contracts (including apprenticeship contracts). Data relating
to new hires and departures are also determined according
to this rule, and are extracted from the human resources
and financial management software of all the Company’s
entities.
2.8.1
Social, Societal, Business Ethics and Vigilance Plan Reporting
Methodology
Indicators refers to the workforce on December 31, 2023.
Depending on the approach adopted and the level of
completion of the
integration process, CENTRIC PLM,
Outscale SAS, StyleSage, Inc. and aifora GmbH may be
excluded from the reporting scope for some indicators, as
reflected in the coverage percentages below:
— data relating to paragraph 2.3.1 “Attracting Talented
Individuals” refer to job offers filled between January 1
and December 31, 2023, covering 95.3% of the
workforce compared with 83.4% in 2022;
— data relating to paragraphs 2.3.2 “Developing Knowledge
and Know‑how”, 2.4.1 “Secure Data and Systems” and
2.6 “Business ethics and Vigilance Plan” are calculated
on the basis of the number of employees. They cover
95.3% of the workforce, compared with 82.4% to 83.4%
in 2022;
— data relating to paragraph 2.3.3 “Preserving Health,
Safety and Well‑Being in the Workplace” are calculated
as follows:
– data relating to absenteeism covers 16 countries,
representing 93.3% of the workforce, compared with
91.9% in 2022,
– data relating to Satisfaction Work Environment are
sourced from the Great Place To Work survey and cover
160 physical sites, with results available for 134 of
these,
– data relating to part‑time work and leave of absence
are calculated on the basis of a number of employees;
— data relating to paragraph 2.3.4 “Rewarding and
Retaining Talents” are calculated as follows:
– data relating to employees granted with Long‑Term
Incentives are calculated on the basis of a number of
employees, excluding members of the Executive team.
They cover 96.4% of the workforce, compared with
96.9% in 2022,
– data relating to Employee shareholding program are
calculated on the basis of the number of employees
and cover 96.6% of the workforce, compared with
91.2% in 2021,
– data relating to employees covered by independent
employees’ representation and collective bargaining
agreements covers the workforce in Europe. They
cover 37% of the workforce, with Europe accounting
for 38% of the total Company’s workforce, compared
with 37.1% in 2022,
– data relating to Employees pride and satisfaction
are sourced from the Great Place To Work survey and
cover 96.4% of the workforce, compared with 95.6%
in 2022;
— data relating to the Gender Equality Index (Index Égalité
Femmes‑Hommes) and the employment rate of people
with disabilities, included in paragraph 2.3.5 “Promoting
Diversity and Inclusion”, cover Dassault Systèmes SE and
are calculated in compliance with French law. They cover
18.6% of the workforce;
— data on People managers refer to employees with
management responsibilities to whom the People
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2
manager role has been assigned and cover 73.7% of
managers;
— data relating to paragraph 2.4.3.1 “Giving Industry the
driving Forces to Transform Tomorrow” are estimated
by taking into account the number of main academic
licenses, to which is applied a coefficient of the number
of users based on experience and exchanges with the
Company’s customers.
2.8.2
Environmental Reporting Methodology
2.8.2.1
Environmental Accounting and
Consolidation Principles and Scope
At December 31, 2023, Dassault Systèmes employees were
spread across 194 sites. The majority of environmental
indicators are calculated on the basis of operating data
for the main physical sites: building energy consumption,
quantity of waste produced, etc. Scope 3 greenhouse gas
emissions, on the other hand, are assessed on the basis of
various processes, such as the tracking of purchases of
transport services for business travel (train or plane tickets,
car rentals, etc.), which is carried out at the level of each
legal entities. These characteristics
of the Company’s
explain the coexistence of several reporting perimeters for
environmental data:
— environmental
consumption
reporting on energy
(Scopes 1 and 2 excluding electricity consumption),
treatment of ordinary or electrical and electronic waste,
building certification, refrigeration systems and company
vehicles concerns sites with at least 50 employees, from
January 1er to December 31 2023, based on collected or
estimated data. In 2023, 66 sites are involved, covering
87% of the Company’s employees, compared with 94%
in 2022;
— reporting on electricity consumption is now extrapolated
to all the Company’s sites, covering 100% of the scope,
against 94% in 2022;
— for
gas
greenhouse
in
Dassault Systèmes’ Scope 3, the data presented in
the environmental reporting covers greenhouse gas
emissions as follows:
emissions
included
– for indicators relating to the purchase of goods and
services and capital goods, the data presented covers
emissions relating to annual Scope 3 supply chain
invoices in euros, recorded or estimated between
January 1 and December 31, 2023, from Scope 3 of
the supply chain. The effect of inflation is restated
from one year to the next, starting with the 2021
reference year, as are the effects of exchange rates,
in order to maintain monetary masses corresponding
to comparable volumes purchased. Non‑significant
legal entities have not been taken into account (these
expenses are estimated at 0.44% of total expenditure).
The scope covers 99% of the Company’s employees,
compared with 98% in 2022,
– for indicators relating to business travel, the data
presented cover emissions relating to employees of
the main Dassault Systèmes legal entities, recorded
between January 1er and December 31 2023. For these
indicators, the environmental reporting data cover
emissions relating to employees in legal entities with a
site of at least 50 employees. In 2023, the scope covers
96% of the Company’s employees, identical to 2022,
– for indicators relating to employees’ commute, the
data presented cover emissions relating to daily
journeys made by employees, based on estimated
distances travelled between their declared home
and the site where they work, from January 1er to
December 31 2023. In 2023, these estimates cover a
worldwide scope representing 99% of the Company’s
employees, compared with 100% in 2022,
– for indicators relating to ordinary waste, the data
presented cover estimated emissions and quantities
from January 1er to December 31 2023. The coverage
rate is 99%, compared with 100% in 2022,
– for water consumption indicators, the data presented
January 1er to
cover estimated quantities from
December 31 2023. The coverage rate is 100%,
– for indicators relating to electronic waste, the data
presented covers emissions relating to electronic waste
transiting through the main sites. The coverage rate is
87%, compared with 86% in 2022,
– for indicators relating to the use of solutions sold,
the data presented covers emissions relating to
active licenses as at December 1, 2023, taken from
financial reporting tools. These indicators concern
indirect emissions relating to the estimated electricity
consumption of “on premise” customers.
Systèmes’
Environmental Accounting
and
Dassault
Consolidation Principles are certified by an independent
third‑party organization and are updated annually. These
principles may evolve as part of Dassault Systèmes’
continuous improvement process, or to take account of
changes in applicable regulations.
2
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2.8.2.2
Environmental Data Collection and
Consolidation
Environmental data relating to greenhouse gas emissions
were collected by the internal network of contributors,
then consolidated by the Sustainable Finance team,
in coordination with
the Sustainability department’s
“Expertise” team, on the basis of Environmental Accounting
and Consolidation Principles.
To facilitate the consolidation of environmental information
relating to Scopes 1, 2 and 3 (excluding downstream Scope
3), a dedicated application has been deployed to better
structure and standardize environmental data, calculate
indicators and increase the frequency of data collection,
while ensuring greater reliability of consolidation operations.
Scopes 1 and 2 indicators covering energy consumption,
greenhouse gas emissions and electrical and electronic
equipment waste are collected quarterly by the internal
network of contributors, and reviewed and reported
quarterly by the Real estate department.
for ordinary waste
Indicators
treatment and other
greenhouse gas emissions are collected annually by the
internal network of contributors.
Indicators relating to the collection and processing of
electronic waste are collected by Information & Technologies
teams. As with ordinary waste, their emissions are assessed
using dedicated emission factors or proxies for each
employee.
GHG indicators relating to the purchase of goods and
services, capital goods and business travel are consolidated
annually by the Procurement & Travel department and,
from 2024, will be calculated automatically in a carbon
consolidation module developed in 2022.
Indicators of greenhouse gas emissions
to
employees’ commute and the use of the Company’s solutions
by its customers are the subject of annual cross‑functional
work, involving various internal departments, and employee
surveys.
relating
2.8.2.3
Limitations of Environmental Reporting
In some cases, information cannot be produced on the
basis of actual consumption, for example for certain foreign
subsidiaries, which make a small contribution, or for sites
where certain charges are included in the rent. In such cases,
internal Environmental Accounting and
the Company’s
Consolidation Principles specify the procedure for making
the necessary estimates.
For most subsidiaries, waste is collected by town councils
or local authorities, who do not provide any information
on the waste collected, making it impossible to provide
any information on the tonnage of waste generated by
the business. Dassault Systèmes has therefore developed
a dedicated estimation method, based on the quantities
collected at the 3DS Paris Campus in Vélizy‑Villacoublay
and an audit of this same site relating to ordinary waste
management (in particular the quality of sorting carried out
by employees).
2.8.3
EU Taxonomy Indicators Methodology
2.8.3.1
Main Methodological Steps in
identifying Eligible Turnover
Eligibility for the Climate Change Mitigation (CCM)
Objective
identified that
The description of activities in Section 8 “Information and
Communication” of Annex 1 of the European Delegated
Act provides a definition of the objectives specific to digital
solutions that are developed with the predominant aim of
reducing emissions. After a comprehensive review of all
the activities described in section 8, Dassault Systèmes
has
in
section “8.2 Data‑driven solutions for GHG emissions
reduction” and can be considered “enabling activities” as
they have the potential to enable its customers to improve
their own sustainability. A detailed assessment of the
Dassault Systèmes portfolio was carried out to identify
offerings marketed with a view to reducing greenhouse gas
emissions.
its activities fit the description
For the 2022 financial year, the calculation of the eligibility of
Dassault Systèmes’ business activities was based primarily
on their ability to reduce greenhouse gas emissions, while
excluding turnover from oil, gas and mining activities. Eligible
turnover to the EU Taxonomy thus represented 65.8% of
total sales.
Based on the same methodology in 2023, the share of
eligible turnover reached 67.3% of the total, marking an
encouraging 1.8‑point increase on the previous year.
Eligibility for the Transition to a Circular Economy (CE)
Objective
For the 2023 financial year, the analysis of eligibility for the
circularity objective criteria is based on brands previously
identified as eligible for the climate change mitigation
objective. Only brands meeting the technical selection
criteria set out in the description of section 4.1 “IT/OT data
solutions supply” have been selected.
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2
The method for calculating the proportion of eligible turnover
for the circularity objective remains the same as that used
for the assessment described in section” 8.2”. For the year
2023, the turnover considered eligible for this circularity
objective represents 58.7% of total turnover.
2.8.3.2
Main Methodological Steps in
identifying Aligned Turnover
To demonstrate the alignment of Dassault Systèmes’
turnover with the EU Taxonomy’s climate change mitigation
objective, the Company has developed a methodology based
on the use of representative use cases.
Work to identify the most representative projects has led to
the documentation of a selection of use cases prepared in
collaboration with external firms with expertise in climate
strategy, whose calculations of the greenhouse gas emissions
reduced or avoided by the application of the Company’s
solutions have been verified by an independent third party.
In the absence of a generally accepted and commonly used
reference framework for estimating reduced or avoided
greenhouse gas emissions, the Company has developed,
under its own responsibility, a methodology for calculating
emissions. This methodology was developed in line with
EU Taxonomy recommendations and in collaboration with
external experts in climate strategy. The standards used
to guide the calculations include ISO 14067:2018 and
ISO 14064‑2:2019, as well as the WBCSD (World Business
Council for Sustainable Development) Guide to avoided
emissions.
Each case analyzes the potential of Dassault Systèmes’
solutions to contribute to reductions in greenhouse gas
emissions for
its customers. Given the heterogeneity
of its solutions, and in order to select projects that are
representative of its activities, the use cases selected relate
to the design of more virtuous products and the optimization
of operations. Estimating reductions involves a significant
degree of judgment, and relies on key assumptions and
parameters used by the Company to establish calculations of
greenhouse gas emissions reduced or avoided, including, in
particular, the choice of:
— functional units consistent with the products and
services of client companies using the Company’s
solutions;
— reference scenarios which do not include the use of the
In order to harmonize the calculation of use cases and
enable extrapolation to Dassault Systèmes’ global turnover,
sustainability levers have been established (see details in
paragraph 2.7.2.2 “Sustainability Levers”). These
levers
are essential for categorizing use cases. They describe
how a Dassault Systèmes solution contributes to reducing
GHG emissions, and propose a method for calculating
avoided emissions in line with the recommendations of
the technical criteria in activity 8.2. These cases were
investigated collectively and involved a total of more than
150 experts within the Company. To organize the calculation
of the alignment, a dedicated collaborative interface was
implemented on the Dassault Systèmes internal platform to
facilitate the governance, traceability and auditability of the
calculations.
The main methodological steps
turnover are as follows:
in calculating aligned
1) Mapping the contribution of each Dassault Systèmes
brand to GHG emissions reduction levers;
2) Identification of representative customer case studies
to demonstrate how Dassault Systèmes solutions
contribute to the reduction of GHG emissions;
3) Calculation of GHG emissions avoided for each case
study using the ISO standards recommended by the
regulations;
4) Extrapolate calculations from levers and estimate the
percentage of aligned turnover.
Aligned turnover with the climate change mitigation
objective represents 33.4% of total turnover this year.
A consistent methodology will be developed in 2024 to
calculate aligned turnover with the circularity objective.
2.8.3.3
Main Methodological Steps in
identifying Eligible Operating
Expenditure
Nature and Type of Eligible Operating Expenditure
Delegated Act C (2021) 4987 specifies the nature of the
operating expenditure to be considered in the eligibility
analysis, and makes explicit reference to the following types
of direct costs not capitalized to assets:
— research and development;
Company’s solution by client companies;
— building renovation;
— scenarios for the application of the Company’s solutions
by the Company’s customers, based on the lifecycle
stages associated with the use of the solution, and other
key assumptions specific to each case study. The choice
of these key assumptions and parameters may have an
impact on the identification of aligned turnover, given an
inherent degree of uncertainty.
— short‑term leases (less than one year in accordance with
IFRS 16);
— maintenance and repair;
2
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
Social, Societal and Environmental Responsibility
Reporting Methodology
— other direct expenses
relating
the ongoing
maintenance of tangible assets by the Company, or by
the third party to whom these activities are outsourced,
which are necessary to keep these assets in good
working order;
to
— training and other human resource adaptation needs.
Other indirect costs, such as overheads, selling, marketing or
administrative expenses, personnel costs and depreciation,
are excluded from eligible operating expenditure.
Dassault Systèmes is still awaiting clarification from the
standard‑setter on the precise scope of operating expenditure
to be considered in the notion of routine maintenance of
assets to ensure their proper functioning, which could lead
Dassault Systèmes to change its methodology, depending on
the clarifications provided.
According to the Delegated Act, three types of operating
expenditure are potentially eligible:
— operating expenditure related to assets or processes
associated with economic activities aligned with the EU
Taxonomy;
— operating expenditure
forming part of a capital
expenditure plan aimed at expanding economic activities
aligned with the EU Taxonomy, or at enabling economic
activities eligible to the EU Taxonomy to be aligned with
it within a predefined timeframe;
— operating expenditure related to the purchase of
production of economic activities aligned with the EU
Taxonomy.
Eligible Software and Services Operating Expenditure
To
identify operating expenditure related to assets or
processes associated with business activities aligned with
the EU Taxonomy, the Company has analyzed in detail
the types of direct non‑capitalized costs associated with
the development of the software portfolio, based on the
Company’s performance analysis tools.
The Company’s performance analysis model, which controls
financial data according to the different solutions marketed,
makes it possible to identify precisely those operating
expenditure which, by their nature or their connection to
a specific use (notably R&D), fall within the scope of costs
covered by the EU Taxonomy and associated with a particular
solution.
This analysis showed that all types of research and
development expenses are eligible when linked to an eligible
brand, mainly direct personnel costs, subcontracting costs
and royalties. The operating expenditure concerned are then
eligible up to the level of turnover eligibility for the brand in
question.
All other maintenance and repair costs, as well as leasing
costs allocated as part of IT and facilities expenditure, are
also considered eligible when associated with research and
development.
150
Purchase of EU Taxonomy‑eligible Activities in
Operating Expenditure
Dassault Systèmes has identified a category of relevant and
eligible operating expenditure within the 13 sectors listed in
Annex I (Climate change mitigation) of Delegated Regulation
(EU) 2021/2139 in the EU Taxonomy:
— section 8: all costs included in the scope of the EU
Taxonomy relating to data processing, hosting and
related activities, i.e. all costs included in the scope of
the EU Taxonomy that can be directly attributed to data
centers (see also paragraph 2.8.3.6 “Main Methodological
Steps in identifying Aligned Capital Expenditure”).
2.8.3.4
Main Methodological Steps in
identifying Aligned Operating
Expenditure
Aligned Software and Services Operating Expenditure
The methodology for assessing the aligned nature of
operating expenditure related to assets or processes
associated with economic activities eligible to the EU
Taxonomy, specifically for data‑driven solutions aimed at
reducing greenhouse gas emissions (8.2 of Annex I – climate
change mitigation – of the Delegated Regulation (EU)
2021/2139) is linked to that described in paragraph 2.8.3.2
“Main Methodological Steps in identifying Aligned Turnover”.
Therefore, the percentage of eligible operating expenditure
associated with a solution corresponds to the percentage of
eligible turnover applied to the total operating expenditure
identified by the process described above. The same
calculation methodology is applied to determine aligned
operating expenditure, based on the percentage of aligned
turnover for a particular solution.
Purchase of EU Taxonomy‑aligned Activities in
Operating Expenditure
Assessment of the alignment of activity CCM 8.1 “Data
processing, hosting and related activities” was carried out
using detailed questionnaires sent to Dassault Systèmes’
main colocation data center providers. These questionnaires
included:
— compliance with the European Code of Conduct for data
centers;
— periodic audits of their implementation;
— the existence of an assessment of the physical risks
associated with climate change that could generate a
potentially significant impact;
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT — implementation of a water resource management and
conservation plan;
— the nature and global warming potential of the
refrigerants used.
The responses to the questionnaires were checked by the
Procurement and Information & Technologies departments,
together with the associated supporting documents.
In addition to these elements, Dassault Systèmes aims to
certify its data center supplier partners to the following
market
rigorously monitors existing
certifications:
standards, and
— ISO 9001 (Quality Management);
— ISO 14001 (Environmental Management);
— ISO 27001 (Security Management);
— ISO 50001 (Energy Management);
— ISO 46001 (Water Management);
— HIPAA (Health Insurance Portability and Accountability Act);
— HDS (Healthcare Data Hosts);
— FEDRAMP (Federal Risk and Authorization Management
Program);
— SecNumCloud.
includes
The “Responsible Procurement” policy, which
Dassault Systèmes’ IT equipment, is essential for confirming
that the “transition to a circular economy” objective has not
been prejudiced, by implementing qualification procedures
that integrate the main issues addressed by the European
eco‑design directive. Compliance with the directive on
hazardous substances in equipment and with the Company’s
e‑waste management policy
is systematically required
in public tenders, providing a framework for equipment
processing and recycling.
Social, Societal and Environmental Responsibility
Reporting Methodology
2
According to the Delegated Act, three types of capital
expenditure are potentially eligible:
— capital expenditure related to assets or processes
associated with economic activities aligned with the EU
Taxonomy;
— capital expenditure forming part of a plan to expand
economic activities aligned with the EU Taxonomy, or to
enable economic activities eligible to the EU Taxonomy to
align with it within a predefined timeframe;
— capital expenditure related to the purchase of production
from economic activities eligible to the EU Taxonomy,
and to individual measures enabling target activities to
decarbonize or reduce their greenhouse gas emissions
(...), provided that these measures are implemented and
operational within 18 months.
Capital expenditure linked to assets or processes associated
with business activities aligned with the EU Taxonomy
have not been the subject of a specific analysis. Indeed, a
brand‑by‑brand approach is not relevant given the nature
of Dassault Systèmes’ investments, with the exception of
intangible assets linked to business combinations, which
are carried by the various solutions in the Company’s brand
portfolio (see below).
Eligible Software and Services Capital Expenditure
2
is
enabling
expanding
solutions
its portfolio of
Dassault Systèmes
regular
through
sustainability
technological
investments take the
form of acquisitions of companies with strong development
potential, and the acceleration of in‑house developments by
Dassault Systèmes.
investments. These
The Company is able to determine the Information &
Technologies and R&D operating expenditure specifically
associated with each colocated data center. Provided the
above criteria are met, this breakdown makes it possible to
determine the proportion of operating expenditure eligible
and aligned with the EU Taxonomy.
Accordingly, the capital expenditure concerned aim to
develop the contribution of the Company’s solutions through
technology, in particular with a view to decarbonizing
or reducing the greenhouse gas emissions of customers
implementing these solutions, and are intrinsically linked to
Dassault Systèmes’ main brands.
2.8.3.5
Main Methodological Steps in
identifying Eligible Capital Expenditure
Nature and Type of Eligible Capital Expenditure
Delegated Act C (2021)4987 specifies the nature of eligible
capital expenditure, i.e. additions to tangible and intangible
fixed assets during the financial year in question, before
depreciation, amortization and any revaluation recognized
in accordance with the applicable IAS and IFRS standards.
It also includes additions to tangible and intangible assets
resulting from business combinations.
The eligibility of technologies acquired during the year is
therefore determined according to the solution with which
they are associated as well as the eligibility criteria detailed
in the EU Taxonomy report and the Commission’s Delegated
Regulation (2021/2139 and 2022/1288).
Purchase of EU Taxonomy‑aligned Activities in Capital
Expenditure
As part of the climate change mitigation objective, Dassault
Systèmes has identified three categories of relevant and
eligible capital expenditure within the 13 sectors listed in the
EU Taxonomy:
— section CCM 6: all capital expenditure related to
purchases or leases of Company cars;
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
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Reporting Methodology
— section CCM 7: all capital expenditure related to
construction and real estate activities aimed at the
construction of new buildings or the renovation of
existing buildings;
installation, maintenance
and repair of energy‑efficient equipment, charging
stations for electric vehicles, instruments and devices
for measuring, regulating and controlling the energy
performance of buildings, and technologies related to
renewable energies;
the
— section CCM 8: all capital expenditure linked to data
processing, hosting and related activities, i.e. all capital
expenditure directly attributable to data centers.
2.8.3.6
Main Methodological Steps in
identifying Aligned Capital Expenditure
Aligned Software and Services Capital Expenditure
The methodology for assessing the aligned nature of capital
expenditure relating to software and services is determined
according to the solutions to which they are associated and
the alignment criteria detailed in the EU Taxonomy and
the Commission’s Delegated Regulation (2021/2139 and
2022/1288).
Purchase of EU Taxonomy‑aligned Activities in Capital
Expenditure
The assessment of the alignment of existing building
construction and renovation activities was carried out
using an evaluation of the main documents attached to all
real estate projects carried out in the 2023 financial year.
The projects were first analyzed against the substantial
contribution criteria of section CCM 7 of the 13 main
business sectors included in the EU Taxonomy for climate
change mitigation.
Subsequently, the main projects presenting a potentially
significant energy improvement were reviewed in detail with
local managers at each of the sites concerned. Specifications,
purchase orders and technical specifications for the main
materials used were examined.
Local controls were checked centrally by the Procurement
and Real Estate Departments, together with the associated
supporting documents.
The methodology for assessing the aligned nature of capital
expenditure relating to data processing, hosting and related
activities is identical to that described in the paragraph
2.8.3.4 “Main Methodological Steps in identifying Aligned
Operating Expenditure”.
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Appendices
2
2.9
Appendices
2.9.1
Glossary of Abbreviations
Meaning
CAD/CAM
Computer Aided Design/Computer Aided Manufacturing
CBCR
Country‑by‑country reporting
CCM
CDP
CE
CNA
CSR
CSRD
DWP
EAC
One of the six EU Taxonomy objectives : Climate Change Mitigation
Carbon Disclosure Project: ESG rating agency
One of the six EU Taxonomy objectives : Transition to a Circular Economy
CVE Numbering Authority (with CVE = Common Vulnerabilities & Exposures)
Corporate Social Responsibility
2
Corporate Sustainability Reporting Directive, directive proposed by the European Commission to impose and provide
a better framework for companies’ non‑financial reports linked to sustainable development.
Digital with Purpose: movement initiated by leaders from ICT companies, fostering collective action and deployment
of digital technologies with high impact.
Energy Attribute Certificate: renewable energy certificates such as Guarantees of Origins (GoOs) and the Renewable
Electricity Certificates (REC)
EECONE
ECOsystem for green Electronics: European‑ wide project for electronic waste reduction
EGDC
ESG
ESRS
FCPA
GDPR
GHGs
European green Digital Coalition: EU declaration signed by 26 leaders of High‑tech companies aiming to commit to
the fight against climate change
Environmental, Social and Governance
European Sustainability Reporting Standards
Foreign Corrupt Practices Act: American law on corruption practices
General Data Protection Regulation
Greenhouse Gases: GHG emissions are used in an equivalent way with carbon emissions or CO2 emissions, all through
paragraphs 1.8 “Environmental, Social, and Governance Performance” and 2 “Social, Societal and Environmental Responsibility”
HATVP
Haute Autorité de la Transparence de la Vie Publique: French body to notably promote exemplarity and integrity of
public authorities
IaaS
ICT
IEA
IPCC
ITAD
LCA
MSCI
n/a
OECD
PLM
PUE
RCP
RFAR
Infrastructure as a Service
Information and Communication Technologies
International Energy Agency
Intergovernmental Panel on Climate Change
Information Technology Asset Disposition
Life Cycle Assessment
ESG rating agency (ex – Morgan Stanley Capital International)
Non applicable
Organization for Economic Cooperation and Development
Product Lifecycle Management
Power Usage Effectiveness
Representative Concentration Pathways
Relation Fournisseurs Achats Responsables: French label rewarding companies or French public entities for
sustainable relationships with their suppliers
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2
Social, Societal and Environmental Responsibility
Appendices
SASB
SBTi
SDG
SDS
SSP
STEPS
TCFD
tCO2‑eq
Meaning
Sustainability Accounting Standards Board
Science‑Based Targets initiative
Sustainable Development Goals, defined by the United Nations
Sustainable Development Scenario: a transitional climate scenario aligned with the target of “below 2°C” set by the
Paris Agreement
Shared Socio‑economic Pathways
Stated Policies Scenarios (from the IEA): scenarios designed to provide insight into the progress of the energy system
based on a detailed review of the policy landscape. This is a sector‑by‑sector assessment of the policies that have
been put in place to achieve energy‑related objectives.
Task Force on Climate‑related Financial Disclosures, a working group on the publication of climate‑related financial
information, which aims to improve the financial transparency of companies in matters relating to climate.
Ton of CO2 equivalent, a unit created by the IPCC to compare the impact of different GHGs in terms of global warming
and to add up their emissions.
UNEP
United Nations Environment Program
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Appendices
2
2.9.2
EU Taxonomy Appendices
2.9.2.1
Turnover
Financial year 2023
Year
Substantial Contribution Criteria
DNSH criteria (Does Not Significantly Harm)
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Yes;
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N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No
Yes;
No
Yes;
No
Yes;
No
Yes;
No
Yes;
No
Yes;
No
%
E
T
A. Taxonomy eligible activities
A.1 Environmentally sustainable activities (Taxonomy‑aligned)
Data‑driven
solutions for
GHG emissions
reductions
Total (A.1)
Of which
enabling
Of which
transitional
CCM
8.2 1,989 33.4%
YES N/EL N/EL N/EL N/EL N/EL
1,989 33.4% 33.4%
‑
‑
‑
‑
‑
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
1,989 33.4% 33.4%
0%
0%
0%
0%
0%
Yes
Yes
Yes
Yes
Yes
Yes
Yes
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
A.2 Taxonomy‑Eligible but not environmentally sustainable activities (not Taxonomy‑aligned)
Data‑driven
solutions for
GHG emissions
reductions
CCM
8.2;
CE 4.1 2,017 33.9%
EL N/EL N/EL
EL N/EL N/EL
E
E
T
‑ (a)
‑ (a)
‑ (a)
‑ (a)
‑ (a)
‑ (a)
65.8%
Total (A.2)
2,017 33.9% 33.9%
Total Eligible
Activities (A1 + A2)
4,006 67.3% 67.3%
B. Taxonomy‑Non‑Eligible Activities
Total (B)
1,945 32.7%
TOTAL (A + B)
5,951 100%
(a)
In 2023, Dassault Systèmes was unable to publish the proportion of its turnover for fiscal year 2022 considered aligned with the EU Taxonomy. The European Commission
belatedly published – at the end of December 2022 – two question‑and‑answer documents specifying the methodology and criteria for certification, by an independent
third‑party auditor, of the calculations and data linked to the alignment indicators. These clarifications meant that Dassault Systèmes could no longer publish an alignment
percentage that was faithful to reality, in the absence of certification by a third‑party verifier within the meaning of the regulations (see paragraph 1.8.1 “Key Metrics”).
155
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
2
Social, Societal and Environmental Responsibility
Appendices
CCM
CCA
WTR
CE
PPC
BIO
— Climate Change Mitigation: CCM.
— Climate Change Adaptation: CCA.
— Water and Marine Resources: WTR.
— Circular Economy: CE.
— Pollution Prevention and Control: PPC.
— Biodiversity and ecosystems: BIO.
Proportion of Turnover/Total Turnover
EU Taxonomy‑aligned
per objective
EU Taxonomy‑eligible
per objective
33.4%
‑
‑
‑
‑
‑
67.3%
‑
‑
58.7%
‑
‑
156
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Social, Societal and Environmental Responsibility
Appendices
2
2.9.2.2
Operating Expenditure
Financial year 2023
Year
Substantial Contribution Criteria
DNSH criteria (Does Not Significantly Harm)
)
x
E
p
O
(
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)
s
(
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)
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1
A
(
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(
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%
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Yes;
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Yes;
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Yes;
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Yes;
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N/EL
Yes;
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N/EL
Yes;
No
Yes;
No
Yes;
No
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No
Yes;
No
Yes;
No
Yes;
No
%
E
T
A. Taxonomy eligible activities
A.1 Environmentally sustainable activities (Taxonomy‑aligned)
Data‑driven
solutions for
GHG emissions
reductions
CCM
8.2
Total (A.1)
Of which
enabling
Of which
transitional
291 22.1%
Yes N/EL N/EL N/EL N/EL N/EL
291 22.1% 22.1%
291 22.1% 22.1%
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
‑ (a)
‑ (a)
‑ (a)
E
E
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑ (a)
T
A.2 Taxonomy‑Eligible but not environmentally sustainable activities (not Taxonomy‑aligned)
Data processing,
hosting and
related activities
CCM
8.1
29 2.2%
EL N/EL N/EL N/EL N/EL N/EL
Data‑driven
solutions for
GHG emissions
reductions
Total (A.2)
Total Eligible
Activities (A1
+ A2)
CCM
8.2
321 24.4%
EL N/EL N/EL N/EL N/EL N/EL
350 26.6% 26.6%
641 48.8% 48.8%
B. Taxonomy‑Non‑Eligible Activities
TOTAL (B)
674 51.2%
TOTAL (A + B)
1,314 100%
1.6%
‑ (a)
‑ (a)
47.7%
(a)
In 2023, Dassault Systèmes was unable to publish the proportion of its turnover for fiscal year 2022 considered aligned with the EU Taxonomy. The European Commission
belatedly published – at the end of December 2022 – two question‑and‑answer documents specifying the methodology and criteria for certification, by an independent
third‑party auditor, of the calculations and data linked to the alignment indicators. These clarifications meant that Dassault Systèmes could no longer publish an alignment
percentage that was faithful to reality, in the absence of certification by a third‑party verifier within the meaning of the regulations (see paragraph 1.8.1 “Key Metrics”).
157
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
2
Social, Societal and Environmental Responsibility
Appendices
CCM
CCA
WTR
CE
PPC
BIO
— Climate Change Mitigation: CCM.
— Climate Change Adaptation: CCA.
— Water and Marine Resources: WTR.
— Circular Economy: CE.
— Pollution Prevention and Control: PPC.
— Biodiversity and ecosystems: BIO.
Proportion of Operating Expenditure/Total Operating Expenditure
EU Taxonomy‑aligned per
objective
EU Taxonomy‑eligible per
objective
22.1%
‑
‑
‑
‑
‑
48.8%
‑
‑
‑
‑
‑
158
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Social, Societal and Environmental Responsibility
Appendices
2
2.9.2.3
Capital Expenditure
Financial year 2023
Year
Substantial Contribution Criteria
DNSH criteria (Does Not Significantly Harm)
3
2
0
2
r
a
e
y
,
x
E
p
a
C
f
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n
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r
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p
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P
)
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p
a
C
(
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)
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)
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(
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C
2
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%
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No;
N/EL
Yes;
No
Yes;
No
Yes;
No
Yes;
No
Yes;
No
Yes;
No
Yes;
No
%
E
T
A. Taxonomy eligible activities
A.1 Environmentally sustainable activities (Taxonomy‑aligned)
Acquisition and
Ownership of
buildings
CCM
7.7
Total (A.1)
Of which
enabling
Of which
transitional
70 21.8%
Yes N/EL N/EL N/EL N/EL N/EL
70 21.8% 21.8%
‑
‑
21.8% 21.8%
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
‑
‑
‑
‑
‑
‑
‑
Yes
Yes
Yes
Yes
Yes
Yes
Yes
‑ (a)
‑ (a)
‑ (a)
‑ (a)
E
T
T
A.2 Taxonomy‑Eligible but not environmentally sustainable activities (not Taxonomy‑aligned)
Transport by
motorbikes,
passenger
cars, and light
commercial
vehicles
Construction of
new buildings
Renovation
of existing
buildings
Installation,
maintenance
and repair of
equipment
related to
energy
efficiency
Acquisition and
Ownership of
buildings
Data processing,
hosting, and
related activities
Data‑driven
solutions for
GHG emissions
reductions
Total (A.2)
Total eligible
activities
(A1 + A2)
CCM
6.5
CCM
7.1
CCM
7.2
CCM
7.3
CCM
7.7
CCM
8.1
CCM
8.2
5 1.6%
EL N/EL N/EL N/EL N/EL N/EL
11 3.3%
EL N/EL N/EL N/EL N/EL N/EL
29
9.1%
EL N/EL N/EL N/EL N/EL N/EL
0 0.0%
EL N/EL N/EL N/EL N/EL N/EL
85 26.5%
EL N/EL N/EL N/EL N/EL N/EL
44 13.9%
EL N/EL N/EL N/EL N/EL N/EL
0 0.0% N/EL N/EL N/EL N/EL N/EL N/EL
174 54.4% 54.4%
244 76.2% 76.2%
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
B. Taxonomy‑Non‑Eligible Activities
TOTAL (B)
TOTAL (A + B)
76.2 23.8%
320 100%
0.8%
1.0%
4.1%
0.5%
32.5%
22.9%
‑ (a)
65.1%
65.1%
(a)
In 2023, Dassault Systèmes was unable to publish the proportion of its turnover for fiscal year 2022 considered aligned with the EU Taxonomy. The European Commission
belatedly published – at the end of December 2022 – two question‑and‑answer documents specifying the methodology and criteria for certification, by an independent
third‑party auditor, of the calculations and data linked to the alignment indicators. These clarifications meant that Dassault Systèmes could no longer publish an alignment
percentage that was faithful to reality, in the absence of certification by a third‑party verifier within the meaning of the regulations (see paragraph 1.8.1 “Key Metrics”).
159
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
2
Social, Societal and Environmental Responsibility
Appendices
CCM
CCA
WTR
CE
PPC
BIO
— Climate Change Mitigation: CCM
— Climate Change Adaptation: CCA
— Water and Marine Resources: WTR
— Circular Economy: CE
— Pollution Prevention and Control: PPC
— Biodiversity and ecosystems: BIO.
Proportion of Capital Expenditure/Total Capital Expenditure
EU Taxonomy‑aligned per objective EU Taxonomy‑eligible per objective
21.8%
‑
‑
‑
‑
‑
76.2%
‑
‑
‑
‑
‑
160
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Social, Societal and Environmental Responsibility
Independent Verifier’s Reports
2
2.10 Independent Verifier’s Reports
2.10.1 Independent third party’s report on consolidated
non‑financial statement presented in the management report
To the General Assembly,
Responsibility of the Entity
Management of Dassault Systèmes are responsible for:
— selecting or establishing suitable criteria for preparing
the Information;
— preparing a Statement pursuant to legal and regulatory
provisions, including a presentation of the business
model, a description of the main non‑financial risks, a
presentation of the policies implemented considering
those risks and the outcomes of said policies, including
key performance
information
indicators and
set‑out in Article 8 of Regulation (EU) 2020/852 (Green
taxonomy);
the
— preparing the Statement by applying the Entity’s
“Guidelines” as referred above; and
— designing,
implementing and maintaining
internal
control over information relevant to the preparation of
the Information that is free from material misstatement,
whether due to fraud or error.
The Statement has been endorsed by the Board of Directors.
Responsibility of the Statutory Auditor appointed as
independent third party
Based on our work, our responsibility is to express a limited
assurance conclusion on:
— the compliance of the Statement with the requirements
of Article R. 225‑105 of the French Commercial Code;
— the fairness of the information provided pursuant to
part 3 of sections I and II of Article R. 225‑105 of the
French Commercial Code, i.e. the outcomes of policies,
including key performance indicators, and measures
relating to the main risks, hereinafter the “Information”.
As we are engaged to form an independent conclusion
on the Information as prepared by management, we are
not permitted to be involved in the preparation of the
Information as doing so may compromise our independence.
In our capacity as Statutory Auditor of your company
Dassault Systèmes SE (hereinafter the “Entity”), appointed
as an independent third party (“third party”) and accredited
Cofrac Inspection Accreditation, n° 3‑1862 (scope available
at www.cofrac.fr), we have undertaken a limited assurance
engagement on the historical information (observed or
extrapolated) in the consolidated non‑financial statement,
in accordance with the Entity’s procedures
prepared
(hereinafter
the year ended
December 31, 2023 (hereinafter the “Information” and the
“Statement”, respectively), presented in the management
report pursuant to the legal and regulatory provisions of
Articles L. 225‑102‑1, R. 225‑105 and R. 225‑105‑1 of the
French Commercial Code (code de commerce).
the “Guidelines”),
for
Conclusion
Based on the procedures we have performed as described
under the “Nature and scope of procedures” and the evidence
we have obtained, nothing has come to our attention that
cause us to believe that the non‑financial statement is
not prepared in accordance with the applicable regulatory
provisions and that the Information, taken as a whole, is
not presented fairly in accordance with the Guidelines, in all
material respects.
Preparation of the non‑financial performance
statement
The absence of a commonly used generally accepted
reporting framework or a significant body of established
practice on which to draw to evaluate and measure
the
Information allows for different, but acceptable,
measurement techniques that can affect comparability
between entities and over time.
Consequently, the Information needs to be read and
understood together with the Guidelines, summarised in the
Statement and available on request from its headquarters.
Inherent Limitations in preparing the Information
As stated
in the Statement, the Information may be
subject to uncertainty inherent to the state of scientific and
economic knowledge and the quality of external data used.
Some information is sensitive to the choice of methodology
and the assumptions or estimates used for its preparation
and presented in the Statement.
2
161
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
Social, Societal and Environmental Responsibility
Independent Verifier’s Reports
It is not our responsibility to report on:
— the Entity’s compliance with other applicable
legal
and regulatory provisions (particularly with regard to
the information set‑out in Article 8 of Regulation (EU)
2020/852 (Green taxonomy), the French duty of care law
and against corruption and tax evasion);
— the fairness of information set‑out in Article 8 of
Regulation (EU) 2020/852 (Green taxonomy);
— the compliance of products and services with the
applicable regulations.
Applicable regulatory provisions and professional
guidance
We performed the work described below in accordance with
Articles A. 225‑1 et seq. of the French Commercial Code,
the professional guidance issued by the French Institute of
Statutory Auditors (Compagnie Nationale des Commissaires
aux Comptes) applicable to such engagement, in particular
the professional guidance issued by the Compagnie Nationale
des Commissaires aux Comptes, Intervention du commissaire
aux comptes – Intervention de l’OTI – déclaration de
performance extra‑financière, and acting as the verification
programme and with the international standard ISAE 3000
(revised).
Independence and quality control
Our independence is defined by the provisions of Article
L. 821‑28 of the French Commercial Code and French Code
of Ethics for Statutory Auditors (Code de déontologie) of
our profession. In addition, we have implemented a system
of quality control
including documented policies and
procedures aimed at ensuring compliance with applicable
legal and regulatory requirements, ethical requirements and
the professional guidance issued by the French Institute of
Statutory Auditors (Compagnie Nationale des Commissaires
aux Comptes) relating to this engagement.
Means and resources
Our work engaged the skills of 8 people between July 2023
and March 2024 and took a total of 16 weeks.
We were assisted in our work by our specialists in sustainable
development and corporate social
responsibility. We
conducted some twenty interviews with people responsible
for preparing the Statement, representing among others the
Sustainability, Ethics and Compliance, Human Resources and
Sustainable Finance & Procurement departments.
Nature and scope of procedures
We are required to plan and perform our work to address the
areas where we have identified that a material misstatement
of the Information is likely to arise.
The procedures we performed were based on our
professional judgment. In carrying out our limited assurance
engagement on the Information, we:
— obtained an understanding of all the consolidated
entities’ activities and the description of the main risks
associated;
— assessed the suitability of the criteria of the Guidelines
with respect to their relevance, completeness, reliability,
neutrality and understandability, taking into account,
where appropriate, best practices within the sector;
— verified that the Statement includes each category of
social and environmental information set out in article
L. 225‑102‑1 III of the French Commercial Code as well
as information regarding compliance with Human rights
and anti‑corruption and tax avoidance legislation and
includes, where applicable, an explanation of the reasons
for the absence of the information required under Article
L. 225‑102‑1 III, paragraph 2 of the French Commercial
Code;
— verified that the Statement provides the information
required under Article R. 225‑105 II of the French
Commercial Code where relevant with respect to the
main risks;
— verified that the Statement presents the business model
and a description of the main risks associated of all the
consolidated entities’ activities, including where relevant
and proportionate, the risks associated with their
business relationships, their products or services, as well
as their policies, measures and the outcomes thereof,
including key performance indicators associated to the
main risks;
— referred
to documentary sources and conducted
interviews to:
– assess the process used to identify and confirm the
main risks as well as the consistency of the outcomes,
including the key performance indicators used, with
respect to the main risks and the policies presented,
and
– corroborate the qualitative
information (measures
and outcomes) that we considered to be the most
important presented in Appendix 1. Concerning the
risk “Innovate for a Sustainable Future” our work was
carried out on the consolidating entity, for other risks,
our work was carried out on the consolidating entity
and on a selection of sites (Paris Campus FRA016 and
Paris Campus FRA036 in France, Shanghai Foxconn in
China, and Paso Robles in the USA for environmental
information) and entities (Dassault Systèmes SE and
Medidata Solutions, Inc. for social information);
— verified that the Statement covers the consolidated
scope, i.e. all the entities within the consolidation scope
in accordance with Article L. 233‑16 of the French
Commercial Code within the limitations set out in the
Statement;
— obtained an understanding of internal control and risk
management procedures the Entity has implemented and
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2
assessed the data collection process aimed at ensuring
the completeness and fairness of the Information;
— for the key performance indicators and other quantitative
outcomes that we considered to be the most important
presented in Appendix 1, implemented:
– analytical procedures to verify the proper consolidation
of the data collected and the consistency of any
changes in those data,
– tests of details, using sampling techniques, in order
to verify the proper application of definitions and
procedures and reconcile the data with supporting
documents. This work was carried out on a selection
of contributing sites (Paris Campus FRA016 and Paris
Campus FRA036
in
China, and Paso Robles in the USA for environmental
in France, Shanghai Foxconn
information) and entities (Dassault Systèmes SE and
Medidata Solutions, Inc. for social information) and
covers between 25% and 30% of the consolidated
data relating to the key performance indicators and
outcomes selected for these tests;
— assessed the overall consistency of the Statement in
relation to our knowledge of all the consolidated entities.
The procedures performed in a limited assurance review
are less in extent than for a reasonable assurance opinion
in accordance with the professional guidelines of the
French National Institute of Statutory Auditors (Compagnie
Nationale des Commissaires aux Comptes); a higher level
of assurance would have required us to carry out more
extensive procedures.
2
One of the Statutory Auditors
PricewaterhouseCoopers Audit
Neuilly‑sur‑Seine, March 13, 2024
Richard Béjot
Partner
Aurélie Castellino
Partner, Sustainable Development
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
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Independent Verifier’s Reports
Appendix: List of the information we considered most important
Key performance indicators and other quantitative results:
Qualitative information (actions and outcomes):
— Information related to referral program;
— Information related to internal hiring;
ethics,
— Information
related
to
compliance
and
cybersecurity trainings;
— Information related to safety of individuals and property;
— Information related to healthcare and disease in the
workplace;
— Information related to freedom of association and
collective bargaining;
— Information related to gender diversity;
— Information related to cybersecurity diligences;
— Information
related
to personal data protection
diligences;
— Information
Committee;
related
to
the Sustainability Steering
— Information related to the whistleblowing procedure.
— Job offers filled;
— Job offers filled by referral;
— Job offers filled by internal hires;
— Employees trained in cybersecurity;
— Employees trained on ethics and compliance;
— Absenteeism – Illness;
— Absenteeism – Occupational accidents;
— Satisfaction Work Environment;
— Employees covered by collective bargaining agreement in
Europe;
— Employee pride and satisfaction;
— Women on Board of Directors;
— Women in the Executive team;
— Women among People managers;
— Employment of people with disabilities;
— Employees trained on personal data protection;
— Millions of students using or having used one or more
technologies;
— Scopes 1 & 2 GHG emissions;
— Scope 3 GHG emissions (GHG emissions related to
Business travels, GHG emissions related to Employees’
commute, GHG emissions related to Capital goods, GHG
emissions related to Goods and services);
— Number of environmental certifications;
— Employees trained in the Code of Business Conduct;
— Employees trained on Anti‑corruption.
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2
2.10.2 Limited assurance report from one of the Statutory Auditors
on Dassault Systèmes’ key performance indicators of the EU
Taxonomy regulation for the year ended December 31, 2023
To the Chief Executive Officer of Dassault Systèmes
In our capacity as Statutory Auditor of Dassault Systèmes
(hereinafter the “Company”) and
in accordance with
your request, we have undertaken a limited assurance
engagement on the key performance indicators required by
the EU Taxonomy regulation for the year ended December
Information”)
31, 2023
included
reporting
presented in the Group management report included in the
chapter 2 of the Company’s 2023 Universal Registration
Document (hereinafter the “2023 URD”) and listed below:
the consolidated non‑financial
(the “Identified Sustainability
in
— Proportion of eligible (67,3%) and aligned (33,4%) turnover;
— Proportion of eligible (76,2%) and aligned (21,8%) capital
expenditure;
— Proportion of eligible (48,8%) and aligned (22,1%) operating
expenditure.
Our assurance does not extend to information in respect of
earlier periods or to any other information included in the
2023 URD.
Our Limited Assurance Conclusion
Based on the procedures we have performed as described
under the section “Summary of the Work we Performed as
the Basis for our Assurance Conclusion” and the evidence
we have obtained, nothing has come to our attention that
causes us to believe that Dassault Systèmes’ Identified
Sustainability Information is not prepared, in all material
respects, in accordance with the methodological framework
(“Methodology Note 3DS Eligible & Aligned Revenue Y2023”,
February 2024 version) prepared by the Company, based
on the provisions set out in Regulation (EU) 2020/852 of
the European Parliament and the Council establishing the
Taxonomy of the European Union and supplemented by the
Delegated Regulations (EU) 2021/2139, (EU) 2021/2178,
(UE) 2022/1214, (UE) 2023/2485 and (UE) 2023/2486 and
the basis of preparation set out in the paragraph 2.8.3. “EU
Taxonomy Indicators Methodology” in the 2023 URD as for
the year ended December 31, 2023.
Emphasis of Matter
We draw attention to paragraph 2.8.3. “EU Taxonomy
Indicators Methodology” of the 2023 URD which describes
the methodology applied by the Company to identify aligned
revenue.
Understanding how Dassault Systèmes has Prepared
the Identified Sustainability Information
The absence of a commonly used generally accepted
reporting framework or a significant body of established
practice on which to draw to evaluate and measure
Identified Sustainability Information allows for different,
but acceptable, measurement techniques that can affect
comparability between entities and over time.
Identified Sustainability
Consequently, the
Information
needs to be read and understood together with with the
methodological framework (“Methodology Note 3DS Eligible
& Aligned Revenue Y2023”, February 2024 version) defined
by the Company and the basis of preparation set out in the
paragraph 2.8.3. “EU Taxonomy Indicators Methodology”
of the 2023 URD as for the year ended December 31, 2023
(together “the Reporting Criteria”).
Inherent Limitations in Preparing the Identified
Sustainability Information
The Identified Sustainability Information may be subject to
inherent uncertainty because of incomplete scientific and
economic knowledge and the quality of external data used.
Moreover, some information is sensitive to the choice of
methodology and the assumptions and/or estimates used
for its preparation and presented in paragraph 2.8.3. “EU
Taxonomy Indicators Methodology” of the 2023 URD.
Dassault Systèmes’ Management Responsibilities
Management of the Company is responsible for:
— selecting or establishing suitable criteria for preparing
the Identified Sustainability Information, taking into
account, if any, applicable law and regulations related to
reporting the Identified Sustainability Information;
— the preparation of
the
Information in accordance with the Reporting Criteria;
Identified Sustainability
— designing,
implementing and maintaining
internal
control over information relevant to the preparation of
the Identified Sustainability Information that is free from
material misstatement, whether due to fraud or error.
2
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
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Independent Verifier’s Reports
Responsibilities of the Statutory Auditor
Nature and scope of the work
We are responsible for:
— planning and performing the engagement to obtain
Identified
the
from material
limited assurance about whether
Sustainability
free
Information
misstatement, whether due to fraud or error;
is
— forming an
independent conclusion, based on the
procedures we have performed and the evidence we have
obtained; and
— reporting our conclusion to the Board of Directors of the
Company.
As we are engaged to form an independent conclusion on
the Identified Sustainability Information as prepared by
management, we are not permitted to be involved in the
preparation of the Identified Sustainability Information as
doing so may compromise our independence.
Professional Standards Applied
limited assurance engagement
in
We performed our
accordance with the professional guidance
issued by
the French Institute of Statutory Auditors (Compagnie
Nationale des Commissaires aux Comptes) applicable to such
engagement and the International Standard on Assurance
Engagements 3000 (Revised), Assurance Engagements other
than Audits or Reviews of Historical Financial Information
issued by
International Auditing and Assurance
the
Standards Board.
Independence and Quality Control
We have complied with the independence and other ethical
requirements of the French Code of Ethics for Statutory
Auditors (Code de Déontologie) as well as the provisions
set forth in Article L. 821‑28 of the French Commercial
Code (Code de Commerce) and the International Code of
Ethics for Professional Accountants (including International
Independence Standards) issued by the International Ethics
Standards Board for Accountants (IESBA Code) which is
founded on fundamental principles of integrity, objectivity,
professional competence and due care, confidentiality and
professional behavior.
Our firm applies
International Standard on Quality
Management 1, which requires the firm to design, implement
and operate a system of quality management including
policies or procedures regarding compliance with ethical
requirements, professional standards, and applicable legal
and regulatory requirements.
Our work was carried out by an
multidisciplinary team with experience
reporting and assurance.
independent and
in sustainability
166
We are required to plan and perform our work to address the
areas where we have identified that a material misstatement
of the Identified Sustainability Information is likely to
arise. The procedures we performed were based on our
professional judgement. In carrying out our limited assurance
engagement on the Identified Sustainability Information, we:
— obtained an understanding, through inquiries, of the
implemented by the Company and the
procedures
methodology used to produce the eligible and aligned
indicators;
— assessed the appropriateness of the Reporting Criteria for
the production of the aligned indicators with regard to its
relevance, its completeness, its reliability, its neutrality
and its understandability, taking into consideration, if
necessary, the industry best practices;
— obtained an understanding of the activity of all the
entities included in the consolidation scope of the
Company;
— obtained, through inquiries, an understanding of the
Company’s control environment and
relevant
information systems for the production of the eligible
and aligned indicators;
the
— referred to documentary sources and conduct interviews
to corroborate the qualitative information that we have
considered the most important;
— assessed the eligibility of revenue from economic
activities
scope of
consolidation, of its capital expenditure or its operating
expenditure with regard to the Reporting Criteria;
the Company’s
included
in
— assessed the “aligned” or sustainable nature of the
economic activities turnover, capital expenditure and
operating expenditure with regard to the Reporting
(substantial contribution criteria, “do not
Criteria
significant harm” criteria and minimum safeguards);
— with respect to the 2nd criterion of substantial contribution
to climate change mitigation of activity 8.2:
– we have conducted interviews with the independent
auditor to understand their mission to provide a limited
assurance conclusion on the calculations of greenhouse
gas emissions reduced or avoided by the application of
the Company’s solutions for a selection of case studies
in accordance with the Reporting Criteria;
– we have reviewed the case studies selected and
verified by the independent auditor, and their results,
– we have assessed the consistency of the conclusion
with the scope of the work carried out by the
independent third‑party verifier;
— assessed the data collection process to ensure the
completeness of the eligible and aligned indicators;
— implemented analytical procedures consisting in verifying
the correct consolidation of the data collected as well as
the consistency of their variations;
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT — for each of the eligible and aligned indicators, we:
– assessed the compliance of the calculations and
assumptions used with the Reporting Criteria,
– performed the necessary reconciliations between
the eligible and aligned indicators and the accounting
or the management data from which they come and
checked that they correspond to the figures used as the
basis for the preparation of the consolidated financial
statements for the year ended December 31, 2023;
— assessed
the eligible
and aligned indicators based on our knowledge of
the overall consistency of
Social, Societal and Environmental Responsibility
Independent Verifier’s Reports
2
the Company and of all the entities included in the
Company’s scope of consolidation;
— performed an overall reading of the information disclosed
in the URD 2023 to identify any apparent inconsistency
with the Reporting Criteria or with the information
reviewed above.
in a
The procedures performed
limited assurance
engagement vary in nature and timing from, and are less
in extent than for, a reasonable assurance engagement.
Consequently, the level of assurance obtained in a limited
assurance engagement
lower than the
assurance that would have been obtained had we performed
a reasonable assurance engagement.
is substantially
Neuilly‑sur‑Seine, 13 March 2024
One of the Statutory Auditors
PricewaterhouseCoopers Audit
Richard Béjot
Partner
2
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 2
Social, Societal and Environmental Responsibility
Statutory Auditors’ Attestation on the information relating to the Dassault Systèmes SE’s total amount paid for sponsorship
2.11 Statutory Auditors’ Attestation on the information
relating to the Dassault Systèmes SE’s total
amount paid for sponsorship
Statutory Auditor’s Attestation on the information relating to the
Dassault Systèmes SE’s total amount paid for sponsorship
For the year ended 31 December 2023
To the Annual General Meeting of Dassault Systèmes S.E.,
In our capacity as statutory auditors of your Company and
in accordance with the requirements Article L. 225‑115 5° of
the French Commercial Code (Code de commerce), we have
prepared this attestation on the information relating to
the total amount of payments made in compliance with
paragraphs 1 to 5 of Article 238 bis of the French Tax Code
(Code général des impôts) for the year ended December 31,
2023, contained in the attached document.
This information was prepared under your Chief Executive
Officer’ responsibility. Our role is to attest this information.
In the context of our role as statutory auditors (Commissaires
aux comptes), we have audited your Company’s annual
financial statements for the year ended December 31, 2023.
Our audit was conducted in accordance with professional
standards applicable
in France and was planned and
performed for the purpose of forming an opinion on the
annual financial statements taken as a whole and not on
any individual component of the accounts used to determine
the total amount of payments made in compliance with
paragraphs 1 to 5 of Article 238 bis of the French Tax Code
(Code général des impôts). Accordingly, our audit tests and
samples were not carried out with this objective, and we do
not express any opinion on any components of the accounts
taken individually.
We performed those procedures which we considered
necessary to comply with professional guidance issued by
the by the French Institute of statutory auditors (Compagnie
nationale des commissaires aux comptes). These procedures,
which constitute neither an audit nor a review, consisted in
performing the necessary reconciliations between the total
amount of payments made in compliance with paragraphs
1 to 5 of Article 238 bis of the French Tax Code (Code général
des impôts) and the accounting records from which it
derived, and verifying that it is consistent with the data used
to prepare the annual financial statements for the year ended
December 31, 2023.
On the basis of our works, we have no matters to report on
the reconciliation of the total amount of payments made
in compliance with paragraphs 1 to 5 of Article 238 bis of
the French Tax Code (Code général des impôts), contained in
the attached document and amounting to €2,898,435 with
the accounting records used to prepare the annual financial
statements for the year ended December 31, 2023.
This attestation shall constitute certification as accurate
of the total amount of payments made in compliance with
paragraphs 1 to 5 of Article 238 bis of the French Tax Code
(Code général des impôts), within the meaning of Article
L. 225‑115 5° of the French Commercial Code (Code de
commerce).
This attestation has been prepared solely for your attention
within the context described above and may not be used,
distributed or referred to for any other purpose.
Paris‑La Défense and Neuilly‑sur‑Seine, March 13, 2024
The Statutory Auditors
French original signed by
KPMG S.A.
PricewaterhouseCoopers Audit
Jacques Pierre
Partner
Xavier Niffle
Partner
Richard Béjot
Partner
168
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Statutory Auditors’ Attestation on the information relating to the Dassault Systèmes SE’s total amount paid for sponsorship
Vélizy‑Villacoublay, March 13, 2024
Certification related to the global amount of sums paid for sponsorship on 2023
The global amount of sums paid for sponsorship, which are referred to at Article 238 bis of the General Tax Code is €2,898,435
for 2023.
The global amount giving rise to fiscal deductions in 2023, is €2,898,435.
Pascal DALOZ
Chief Executive Officer
2
2
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3
Financial review and prospects
FINANCIAL REVIEW
AND PROSPECTS 3
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.1.6
3.2
3.3
Operating and Financial Review
Executive Overview for 2023
Financial information definitions
Consolidated Information: Financial Review of 2023 Compared to 2022
IFRS non‑IFRS reconciliation
Variability in Quarterly Financial Results
Capital Resources
Financial Objectives
Interim and Other Financial Information
172
172
172
177
181
182
183
184
185
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332023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial review and prospects
Operating and Financial Review
3.1
Operating and Financial Review
The executive overview in paragraph 3.1.1 “Executive
Overview for 2023” highlights selected aspects of the
Group’s business during 2023. Financial information and
definitions should be read together with its consolidated
financial statements and the related notes included in
paragraph 4.1.1 “Consolidated Financial Statements” prepared
in accordance with IFRS accounting rules. The various
definitions and methods of which can be found in Note 2 to
the consolidated financial statements.
The supplemental non‑IFRS financial information are
subject to inherent limitations. They are 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. In addition, Dassault Systèmes’
non‑IFRS supplementary financial data may not be
comparable to other data also called “non‑IFRS” and used by
other companies. A number of specific limitations relating to
these measures are detailed below.
Unless otherwise indicated, variations in the following tables
are related to current exchange rate.
Non‑IFRS financial information definitions can be found in
paragraph 3.1.2.3 “Non‑IFRS financial information definitions”.
The reconciliation between this financial information and the
IFRS framework can be found in paragraph 3.1.4 “IFRS non‑
IFRS reconciliation”.
Between the end of the 2023 fiscal year and the filing date of
this Universal registration document, there was no material
change in the financial position or financial performance of
Dassault Systèmes.
3.1.1
Executive Overview for 2023
IFRS
Non‑IFRS
(in millions of euros, except per share data
and percentages)
2023
2022
Change
Change
in cc*
2023
2022
Change
Total Revenue
Software Revenue
Services Revenue
Operating Margin
Diluted net earnings per share (“EPS”)
*
In constant currencies.
€5,951.4
5,360.0
591.4
20.9%
€0.79
€5,665.3
5,114.0
551.2
23.0%
€0.70
5%
5%
7%
(2.1)pts
12%
10%
9% €5,951.4
8% 5,360.0
591.4
32.4%
€1.20
€5,665.5
5,114.3
551.2
33.4%
€1.13
5%
5%
7%
(1.0)pt
5%
Software revenue
(in millions of euros, except percentages)
2023
2022
Change
Change
in cc*
2023
2022
Change
IFRS
Non‑IFRS
Americas
Europe
Asia
*
In constant currencies.
2,141.9
2,027.3
1,190.8
2,061.8
1,816.3
1,235.9
4%
12%
(4%)
7%
14%
3%
2,141.9
2,027.3
1,190.8
2,062.0
1,816.4
1,235.9
4%
12%
(4%)
Change
in cc*
9%
8%
10%
12%
Change
in cc*
7%
14%
3%
3.1.2
Financial information definitions
3.1.2.1
Definitions of Key Metrics Used
Information in Constant Currencies
Dassault Systèmes has followed a long‑standing policy of
measuring its revenue performance and setting its revenue
objectives exclusive of currency in order to measure in a
transparent manner the underlying level of improvement
in its total revenue and software revenue by activity,
industry, geography and product lines. The Group believes
it is helpful to evaluate its growth exclusive of currency
impacts, particularly to help understand revenue trends
in its business. Therefore, the Group provides percentage
increases or decreases in its 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 “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,
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3DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial review and prospects
Operating and Financial Review
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, the Group believes these measures
are critical to understanding its global revenue results and
to compare with many of its competitors who report their
financial results in U.S. dollars. Therefore, Dassault Systèmes
includes this calculation for comparing IFRS revenue figures
as well non‑IFRS revenue figures for comparable periods.
All information at constant exchange rates is 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 Product Lines
The Group’s product lines financial reporting include the
following financial information:
— Industrial Innovation software revenue, which includes
CATIA, ENOVIA, SIMULIA, DELMIA, GEOVIA, NETVIBES,
and 3DEXCITE brands;
— Life Sciences software revenue, which includes MEDIDATA
and BIOVIA brands;
— Mainstream Innovation software revenue for SMEs
(small and medium sized enterprises), which includes
its CENTRIC PLM and 3DVIA brands, as well as its
3DEXPERIENCE WORKS family which
includes the
SOLIDWORKS brand.
Starting from 2022, 3DS OUTSCALE became a brand of
Dassault Systèmes. As the first sovereign and sustainable
operator on the cloud, 3DS OUTSCALE enables governments
and corporations from all sectors to achieve digital autonomy
through a Cloud experience and with a world‑class cyber
governance.
Information on Industrial Sectors
GEO’s
The Group provides broad end‑to‑end software solutions
and services: its platform‑based virtual twin experiences
combine modeling, simulation, data science and collaborative
innovation to support companies in the three sectors it
serves, namely Manufacturing Industries, Life Sciences &
Healthcare, and Infrastructure & Cities.
Eleven GEOs are responsible for driving the development of
the Company’s business and implementing its customer‑
centric engagement model. Teams leverage strong networks
of local customers, users, partners, and influencers.
These GEOs are structured into three groups:
These three sectors comprise twelve industries:
— the “Americas” group, made of two GEO’s;
— Manufacturing Industries: Transportation & Mobility;
Aerospace & Defense; Marine & Offshore; Industrial
Equipment; High‑Tech; Home & Lifestyle; Consumer
Packaged Goods – Retail. In Manufacturing Industries,
Dassault Systèmes helps customers virtualize their
operations, improve data sharing and collaboration across
their organization, reduce costs and time‑to‑market, and
become 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 Medtech;
— Infrastructure & Cities: Infrastructure, Energy & Materials;
Architecture, Engineering & Construction; Business
Services; Cities & Public Services. In Infrastructure &
Cities, the Group supports the virtualization of the sector
in making its industries more efficient and sustainable,
and creating desirable living environments.
— the “Europe” group, comprising Europe, Middle East and
Africa (EMEA) and made of four GEO’s;
— the “Asia” group, comprising Asia and Oceania and made
of five GEO’s.
3DEXPERIENCE Licenses and Software Contribution
To measure the relative share of 3DEXPERIENCE software in
its revenues, Dassault Systèmes uses the following ratios:
— for licenses revenue, the Group calculates the percentage
contribution by comparing total 3DEXPERIENCE Licenses
revenue to licenses revenue for all product lines except
SOLIDWORKS on‑premise, MEDIDATA, CENTRIC PLM
and other acquisitions (defined as “3DEXPERIENCE
Eligible 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 on‑premise, MEDIDATA, CENTRIC PLM
and other acquisitions (defined as “3DEXPERIENCE Eligible
software revenue”).
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332023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial review and prospects
Operating and Financial Review
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
impairment
adjusted of amortization, depreciation and
expense of intangible and tangible assets and of non‑cash
share‑based payment expense (excluding related social
charges).
Cloud revenue
Cloud revenues correspond to revenue generated through
a catalog of online services to configure and run cloud
solutions, 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:
Dedicated cloud, Sovereign cloud and International cloud.
All cloud applications can be offered through subscriptions
models or perpetual licenses and maintenance.
3.1.2.2
Composition of the main items in the
income statement
Software license revenue represents fees earned from
granting customers licenses to use the Group’s software.
It includes license revenue of perpetual and periodic license
sales of software products and is recognized at a point
in time for an arrangement when control is transferred to
the client.
Subscription contracts generally have a term of between
one‑year and five‑year and contain two separate performance
obligations pertaining to on‑premise software license and
support.
Subscription revenue also is derived from access to cloud
solution contracts including remote access to a software
solution, hosting and support services.
Support revenue represents periodic fees associated with
the sale of unspecified product updates on a when‑and‑if‑
available basis and technical support. Support agreements
are entered into in connection with the initial software
license purchase. Support may be renewed by the customer
at the conclusion of each term.
Other software revenue mainly relates to the development
of additional functionalities of standard products requested
by clients.
Services revenue comprises mainly revenue from consulting
services in methodology for design, simulation, deployment
and support, training services and engineering services. In
addition, services and other revenue also include content
production for use in 3D visualization, advertising, sales and
marketing.
The cost of software revenue includes mostly software
personnel costs,
third‑party
components integrated into the Company’s own products,
hosting and other cloud‑related costs and other expenses.
fees paid
licensing
for
The cost of services revenue includes principally personnel
and other costs related to organizing and providing services
revenue.
in R&D
Expenses for R&D include primarily personnel costs as
well as the rental, depreciation and maintenance expenses
for computer hardware used
including cloud
infrastructure, development tools, computer networking
and communication expenses. Costs for R&D of software are
expensed in the period in which they are incurred. The Group
does not capitalize any R&D costs. A minor fraction of R&D
personnel pursue R&D activities in the context of providing
clients with software maintenance, and their cost is thus
included under cost of software revenue. Expenses for R&D
are recorded net of grants received from certain public
authorities to fund R&D projects as well as R&D tax credits
received mostly in France.
Marketing and Sales expenses consist primarily of:
— personnel costs, which include sales commissions and
personnel expenses for processing sales transactions;
— marketing and communications expenses, including advertising;
— associated travel expenses;
— and marketing infrastructure costs, such as information
technology resources used for marketing.
General and administrative expenses consist primarily of:
— personnel costs of the finance, human resources, legal
and general management;
— associated third‑party professional fees (excluding acquisition‑
related fees) and other expenses;
— associated travel expenses;
— infrastructure costs, including information technology
resources.
Amortization of acquired intangibles includes mainly amortization
of acquired technology and acquired customer relationships.
Other operating income and (expense), net, includes the
impact of events that are unusual, infrequent or generally
non‑recurring in nature.
Recurring fees for subscription and support are reported
within “Software Revenue”.
Financial income, net includes:
— interest income and interest expense, net;
174
3DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT — foreign exchange gains or losses, net, primarily composed
of realized and unrealized exchange gains and losses on
receivables and loans denominated in foreign currencies;
— one‑time financial items, net.
3.1.2.3
Non‑IFRS financial information
definitions
The Group’s management uses the supplemental non‑
IFRS financial information, together with the IFRS financial
information, for financial planning and analysis, evaluation
of operating performance, mergers and acquisition analysis
and valuation, operational decision‑making and for setting
financial objectives for future periods. Compensation of
senior management is based in part on the performance
of its business measured with the supplemental non‑IFRS
information. The Group believes that the supplemental non‑
IFRS data also provides meaningful information to investors
and financial analysts who use the information for comparing
the Group’s operating performance to its historical trends
and to other companies in the software industry, as well as
for valuation purposes.
As explained in more detail below, non‑IFRS data excludes
the effect of:
— adjusting the carrying value of acquired companies’ contract
liabilities (deferred revenue);
— the amortization of acquired intangibles assets and of
tangible assets revaluation;
— lease incentives of acquired companies;
— share‑based compensation expense and related social
charges;
— other operating income and expense, net;
— certain one‑time items included in financial income, net;
— certain one‑time tax effects and the income tax effects
of the above adjustments.
Thus, the following are excluded from the non‑IFRS financial
data:
contracts acquired
— contract liabilities write‑downs: under IFRS, deferred
revenue of an acquired company must be adjusted by
writing it down to account for the fair value of obligations
assumed under
the
acquisition of the Company. As a result, in the case of a
typical one‑year contract, the Company’s IFRS revenues
for the one‑year period subsequent to an acquisition
do not reflect the full amount of revenue on assumed
contracts that would have otherwise been recorded by
the acquired entity in the absence of the acquisition.
through
Financial review and prospects
Operating and Financial Review
In its supplemental non‑IFRS financial information, the
Group has excluded this write‑down to the carrying
value of the contract liabilities, and reflect instead the full
amount of such revenue. Dassault Systèmes believes that
this non‑IFRS measure of revenue is useful to investors
and management because it reflects a level of revenue
and operational results that corresponds to the combined
business activities of Dassault Systèmes and the acquired
company.
However, by excluding the deferred revenue adjustment,
the supplemental non‑IFRS financial information reflects
the total revenue that would have been recorded by
the acquired entity but may not reflect the total cost
associated with generating the non‑IFRS revenue;
— amortization of acquired intangibles assets, including
amortization of acquired technology, and amortization
of acquired tangible assets revaluation arising from a
business combination: under IFRS, the cost of acquired
intangible and tangible assets, whether acquired through
acquisitions of companies or of technology or certain
other intangible assets, must be recognized according to
the assets’ fair value and amortized over their useful life.
its supplemental non‑IFRS financial
information,
In
the Company has excluded the amortization related
to acquired intangibles assets and of acquired tangible
assets revaluation arising from a business combination
in order to provide a consistent basis for comparing its
historical results. Costs related to internally developed
technology are typically expensed as
incurred. For
example, because it typically incurs most of its R&D costs
prior to reaching technical feasibility, its R&D costs are
expensed in the period in which they are incurred. By
excluding the amortization expenses related to acquired
intangibles,
supplemental non‑IFRS financial
information provides a uniform approach for evaluating
the development cost of all the Company’s technology,
whether developed internally or acquired externally. As a
result, the Company believes that the supplemental non‑
IFRS financial information offers investors a useful basis
for comparing its historical results.
the
However, the acquired intangible assets and tangible
assets revaluation arising from a business combination,
which amortization costs are excluded contributed
to revenue earned during the period, and it may not
have been possible to earn such revenue without such
assets. In addition, the annual amortization of acquired
intangibles assets and tangible assets revaluation arising
from a business combination is a recurring expense for
the Group until they are fully amortized;
— share‑based compensation expense and related social
charges: under IFRS, the Company is required to recognize
in its income statement all share‑based compensation to
employees, including grants of employee stock options and
performance shares, based on their fair values over the period
that an employee provides service in exchange for the award.
175
332023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial review and prospects
Operating and Financial Review
The Group excludes
remuneration‑related charges
based on shares and associated social charges from its
complementary non‑IFRS because investors and financial
analysts use valuation models that do not take such
a burden into account. The exclusion of share‑based
compensation expense in the Company’s supplemental
non‑IFRS financial information therefore helps them
ensure the consistency of their valuation metrics. The
Company’s management considers the supplemental
share‑based
non‑IFRS
compensation expense when reviewing the Company’s
operating performance, since share‑based compensation
expenses can fluctuate due to factors other than the level
of its business activity or operating performance.
that excludes
information
However, share‑based compensation is one component
of employee compensation. By excluding
the
supplemental non‑IFRS financial information does not
reflect the Company’s full cost of attracting, motivating
and retaining its personnel. Share‑based compensation
expense is a recurring expense;
it,
— lease incentives of acquired companies: under IFRS,
the right‑of‑use on the company acquired leased assets
has to be adjusted by the buyer when the business
combination is accounted for, in order to recognize
the fair value of their future lease payments. Lease
incentives received, such as rent‑free periods, are not
included in the right‑of‑use evaluation. Therefore, under
IFRS, amortization of right‑of‑use assets during the
lease period does not take into account the amortization
savings related to these incentives, which would have
been recognized by the company acquired if it continued
to operate on a standalone basis.
its supplemental non‑IFRS financial
In
the Company excludes
companies such as rent‑free periods;
lease
information,
incentives of acquired
— other operating income and expense, net: under IFRS,
the Company has recognized certain other operating
income and expense comprised of the
impact of
costs incurred in connection with the voluntary early
restructuring activities, gains or
retirement plan,
losses on sale of subsidiaries, impairment of goodwill
or acquired intangible assets, costs directly related to
acquisitions and costs related to relocation activities and
reorganizations of the Group’s premises.
In its supplemental non‑IFRS financial information, the
Company excludes other operating income and expense
effects because of their unusual, infrequent or generally
non‑recurring nature.
income and expense are
However, other operating
components of the Company’s income and expense and
by excluding them the supplemental non‑IFRS financial
information excludes their impact to its net income;
— certain non‑recurring financial items, net:
In its supplemental non‑IFRS financial information, the
Company excludes certain one‑time items included in
financial income, net because of their unusual, infrequent
or generally non‑recurring nature.
However, these one‑time items included in financial
income, net are components of the Company’s income
and expense and by excluding them the supplemental
non‑IFRS financial information excludes their impact to
its net income;
— certain one‑time tax effects: The Company’s IFRS financial
statements reflect the impact of one‑time tax effects,
such as those related to restructurings of activities or tax
remeasurement effects, which may result in immediate
adjustment of the income tax provision.
its supplemental non‑IFRS financial
In
information,
the Company has excluded these one‑time tax effects
because of their unusual nature in qualitative terms.
The Company does not expect such tax effects to occur
as part of its normal business on a regular basis. The
Company also believes that the exclusion of certain
one‑time tax effects facilitates a comparison of its
effective tax rate between different periods.
However, these one‑time tax effects are a component of
the Company’s income tax expense. By excluding these
effects, the supplemental non‑IFRS financial information
understates or overstates the Company’s income tax
expense.
176
3DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial review and prospects
Operating and Financial Review
3.1.3
Consolidated Information: Financial Review of 2023
Compared to 2022
3.1.3.1
Revenue
(in millions of euros except percentages)
2023
2022
Change
Year ended
December 31,
Change
in cc*
Year ended
December 31,
2023
2022
Change
Change
in cc*
IFRS
Non‑IFRS
Total Revenue
€5,951.4
€5,665.3
5,360.0
5,114.0
5%
5%
9% €5,951.4
€5,665.5
8%
5,360.0
5,114.3
5%
5%
Revenue breakdown by activity
Software revenue
of which licenses and other
software revenue
of which subscription and support
revenue
Services revenue
Software revenue breakdown
by product line
Industrial Innovation
Life Sciences
Mainstream Innovation
Software revenue breakdown
by geography
Americas
Europe
Asia
*
In constant currencies.
1,087.6
1,106.2
(2%)
2% 1,087.6
1,106.2
(2%)
4,272.4
591.4
4,007.9
551.2
7%
7%
10% 4,272.4
591.4
10%
4,008.1
551.2
2,908.0
1,158.9
1,293.2
2,719.1
1,126.2
1,268.8
2,141.9
2,027.3
1,190.8
2,061.8
1,816.3
1,235.9
7%
3%
2%
4%
12%
(4%)
10%
6%
7%
2,908.0
1,158.9
1,293.2
2,719.1
1,126.2
1,269.0
7%
14%
3%
2,141.9
2,027.3
1,190.8
2,062.0
1,816.4
1,235.9
4%
12%
(4%)
7%
7%
7%
3%
2%
9%
8%
2%
10%
10%
10%
6%
7%
7%
14%
3%
In the below paragraphs, all revenue growth rates are in constant currencies.
Total Revenue (IFRS and non‑IFRS)
Software revenue by activity (IFRS and non‑IFRS)
Total revenue grew by 9% to €5.95 billion and software
revenue increased 8% to €5.36 billion, in line with the
financial objectives. This reflects the strong growth of
recurring revenue which in 2023 accounted for 80% of
total software revenue, an increase of two percentage
points compared to 2022. This performance is driven by the
momentum in subscription revenue, representing an increase
of 16%, accelerating over the year.
3DEXPERIENCE and cloud are catalysts and drivers of the
successful evolution towards a sustainable subscription
model.
3DEXPERIENCE revenue increased 19%, representing 36%
of 3DEXPERIENCE Eligible software revenue. Cloud software
revenue grew by 12% and represented 24% of software
revenue.
Transportation & Mobility, Aerospace & Defense, Home &
Lifestyle and Consumer Packaged Goods & Retail displayed
also some of the strongest growth rate.
Subscription and support revenue rose 10% to €4.27 billion;
and 80% of total software revenue. Licenses and other
software revenue were up 2% to €1.09 billion, reflecting
the shift towards subscription revenue. Services revenue
increased 10% to €591.4 million.
Product Line Revenue (IFRS and non‑IFRS)
— Industrial Innovation: software revenue rose 10% to
€2.91 billion and represented 54% of software revenue.
CATIA, SIMULIA, DELMIA and NETVIBES exhibited some
of the higher growth rates.
— Life Sciences: software revenue
increased 6% to
€1.16 billion, representing 22% of software revenue.
Against a strong comparison baseline, MEDIDATA total
revenue was up 10%, in part driven by high value‑added
study conduct services.
177
332023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial review and prospects
Operating and Financial Review
— Mainstream Innovation: software revenue increased 7%
to €1.29 billion, representing 24% of software revenue.
CENTRIC PLM delivered strong double‑digit growth while
SOLIDWORKS reported mid‑single digit growth. The
growth dynamics are shifting at an accelerated pace in
favor of the subscription model.
Software Revenue by Region (IFRS and non‑IFRS)
The Americas grew 7% and represented 40% of software
revenue, with resilient growth dynamics. Broad‑based
momentum continued in Europe (38% of software revenue),
up 14%. Asia suffered from contrasted and volatile economic
dynamics across the year.
3.1.3.2
Operating Expenses
(in millions of euros, except percentages)
2023
2022
Change
2023
2022
Change
IFRS
Non‑IFRS
Year ended December 31,
Year ended December 31,
Cost of software revenue (excluding
amortization of acquired intangibles
and of tangible assets revaluation)
(as % of total revenue)
Cost of services revenue
(as % of total revenue)
Research and development expenses
(as % of total revenue)
Marketing and sales expenses
(as % of total revenue)
General and administrative expenses
(as % of total revenue)
Amortization of acquired intangible
assets and of tangible assets
revaluation
Other operating income and
(expense), net
TOTAL OPERATING EXPENSES
€(453.9)
(8%)
€(517.1)
(9%)
€(1,228.3)
(21%)
€(1,624.5)
(27%)
€(450.6)
(8%)
€(463.8)
(8%)
€(455.5)
(8%)
€(1,087.2)
(19%)
€(1,502.6)
(27%)
€(435.2)
(8%)
€(378.9)
€(401.9)
€(56.2)
€(4,709.5)
€(16.0)
€(4,362.4)
(2%)
14%
13%
8%
4%
(6%)
N/A
8%
€(448.4)
(8%)
€(506.0)
(9%)
€(1,132.6)
(19%)
€(1,550.4)
(26%)
€(388.3)
(7%)
€(457.3)
(8%)
€(452.6)
(8%)
€(1,023.4)
(18%)
€(1,454.2)
(26%)
€(386.1)
(7%)
(2%)
12%
11%
7%
1%
‑
‑
‑
€(4,025.8)
‑
€(3,773.5)
7%
IFRS operating expenses increased by 10% and by 9%
in non‑IFRS at constant exchange rates. Currency had a
positive effect of about 2 percentage points in IFRS and
about 3 percentage points in non‑IFRS. 2023 acquisitions did
not significantly affect the operating expenses evolution.
Cost of software revenue (excluding amortization of acquired
intangibles) decreased by 2% in both IFRS and non‑IFRS. In
constant currency, cost of software revenue remained stable
in IFRS and grew by 1% in non‑IFRS.
increase
The
in cost of services mostly reflected the
growth of headcount and related costs to support the
service revenue’s growth (IFRS and non‑IFRS). In constant
currencies, cost of services revenue increased 17% in IFRS
and 15% in non‑IFRS.
The 2023 increase in R&D expenses mostly reflected headcount
growth and related costs. In constant currencies, IFRS and
non‑IFRS R&D expenses grew respectively 15% and 12%.
The increase in marketing and sales expenses was mostly
due to workforce growth and related costs, to higher travel
costs in support of business activity and to marketing
events. In constant currencies, IFRS and non‑IFRS sales and
marketing expenses increased respectively by 11% and 10%.
The increase in general and administrative expenses mostly
reflected headcount growth and related costs. In constant
currencies, IFRS and non‑IFRS general and administrative
expenses increased, respectively by 5% and 2%.
IFRS Amortization of acquired intangibles decreased by 3%
in constant currencies, in line with depreciation plans.
178
3DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial review and prospects
Operating and Financial Review
Other operating
income and (expense), net amounted
to €(56.2) million in 2023 from €(16.0) million in 2022,
reflecting a €(33.0) million impairment of goodwill, higher
acquisition and acquisition projects expenses, and amortization
of right‑of‑use of a newly delivered building, still in vacant
leasehold on the Vélizy‑Villacoublay campus
(refer to
Note 8 to the consolidated financial statements).
3.1.3.3
Operating income
IFRS
Non‑IFRS
Year ended December 31,
Year ended December 31,
(in millions of euros, except percentages)
2023
2022
Change
2023
2022
Change
Operating Income
Operating margin
(as % of total revenue)
€1,241.9
€1,302.9
(5%)
€1,925.6
€1,892.0
2%
20.9%
23.0%
32.4%
33.4%
In 2023, Non‑IFRS operating income grew by 2% and by
7% in constant currencies. The operating margin decrease
was largely due to higher operating expenses, reflecting
the sustained strategic investment in the Group’s growth
with recruitments and related costs in the R&D, services and
marketing and sales teams.
The decrease in IFRS operating income and operating margin
also included higher share‑based compensation expenses
and related social charges, reflecting the impact of the new
employee shareholding plan “TOGETHER 2023” (refer to
Note 7 to the consolidated financial statements) and of the
share price growth, lower other operating and (expense)
net, and was offset in part by a decrease in amortization of
acquired intangibles.
3.1.3.4
Financial income (loss), net
IFRS
Non‑IFRS
Year ended December 31,
Year ended December 31,
(in millions of euros, except percentages)
Financial income, net
2023
€59.0
2022
€2.8
Change
2023
N/A
€88.2
2022
€5.6
Change
N/A
The increase in Financial Income, net, was mainly due to
higher interests earned on cash and cash equivalents, which
have been partially offset by the increase of interest expense
related to lease liabilities and of interests paid on commercial
papers issued since July 2022.
The IFRS Financial Income was reduced by the impairment of
loans to Bio Serenity SAS (refer to Note 9 to the consolidated
financial statements).
179
332023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial review and prospects
Operating and Financial Review
3.1.3.5
Income taxe expense
IFRS
Non‑IFRS
Year ended December 31,
Year ended December 31,
(in millions of euros, except percentages)
2023
2022
Change
2023
2022
Change
Income tax expense
Effective consolidated tax rate
€(250.7)
19.3%
€(375.4)
28.8%
(33%)
€(414.8)
20.6%
€(385.4)
20.3%
8%
In IFRS, the income tax expense decrease was mainly due
to the write‑off, in 2022, of amounts previously paid to
the French tax administration, for a total €144.9 million,
following the unfavorable decisions rendered by the French
Supreme Court (Conseil d’Etat) on May 31, 2022, in response
to an appeal lodged by the Group. In Non‑IFRS, as this loss
is not reflected, the 2023 Group effective tax rate is stable
compared to 2022 (refer to Note 10 to the consolidated
financial).
3.1.3.6
Net income and net income per diluted share
(in millions of euros, except per share data
and percentages)
Net Income attributable to Equity
holders of the Group
Diluted earnings per share
Diluted weighted average number of
shares outstanding (in millions)
IFRS
Non‑IFRS
Year ended December 31,
Year ended December 31,
2023
2022
Change
2023
2022
Change
€1,050.9
€0.79
€931.5
€0.70
13%
12%
€1,597.9
€1.20
€1,512.2
€1.13
6%
5%
1,336.8
1,332.7
1,336.8
1,332.7
IFRS diluted earnings per share increased 12% while 2022
IFRS net income per diluted share was impacted by a
one‑time tax effect.
2018. This performance reflects an increasing focus on
accelerating growth in core industries and domains, despite
the pandemic and geopolitical instability.
Non‑IFRS diluted earning per share grew to €1.20, achieving
the five‑year plan of doubling EPS by 2023 announced in
Compared to 2022, 2023 Non‑IFRS diluted EPS increased
5% as reported and 12% in constant currencies.
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3DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial review and prospects
Operating and Financial Review
3.1.4
IFRS non‑IFRS reconciliation
The following table sets forth the Company’s supplemental
non‑IFRS financial information, together with the comparable
IFRS financial measure and a reconciliation of the IFRS and
non‑IFRS information.
The main items in the income statement are defined in
paragraph 3.1.2 “Financial information definitions”.
(in millions of euros, except per share data
and percentages)
2023
IFRS
Adjust‑
ment (1)
2023
non‑IFRS
2022
IFRS
Adjust‑
ment (1)
2022
non‑IFRS
IFRS Non‑IFRS (2)
Year ended December 31,
Variation
Total Revenue
€5,951.4
€‑ €5,951.4
€5,665.3
€0.2 €5,665.5
5%
5%
Revenue breakdown by activity
Software revenue
Licenses and other software revenue
Subscription and Support revenue
Recurring portion of software
revenue
Services revenue
Software revenue breakdown
by product line
Industrial Innovation
Life Sciences
Mainstream Innovation
Software revenue breakdown
by geography
Americas
Europe
Asia
Total Operating Expenses
Share‑based compensation expense
and related social charges
Amortization of acquired intangible
assets and of tangible assets
revaluation
Lease incentives of acquired
companies
Other operating income
and expense, net
Operating Income
Operating Margin
Financial income, net
Income before Income Taxes
Income tax expense
Non‑controlling interest
Net Income attributable to
shareholders
5,360.0
1,087.6
4,272.4
80%
591.4
2,908.0
1,158.9
1,293.2
2,141.9
2,027.3
1,190.8
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
5,360.0
1,087.6
4,272.4
5,114.0
1,106.2
4,007.9
80%
591.4
78%
551.2
2,908.0
1,158.9
1,293.2
2,719.1
1,126.2
1,268.8
0.2
‑
0.2
‑
‑
‑
0.2
5,114.3
1,106.2
4,008.1
78%
551.2
2,719.1
1,126.2
1,269.0
2,141.9
2,027.3
1,190.8
2,061.8
1,816.3
1,235.9
0.1
0.1
‑
2,062.0
1,816.4
1,235.9
(4,709.5)
683.7
(4,025.8)
(4,362.4)
588.9 (3,773.5)
(245.8)
245.8
(378.9)
378.9
(2.8)
2.8
‑
‑
‑
(168.0)
168.0
(401.9)
401.9
(3.0)
3.0
‑
‑
‑
(56.2)
1,241.9
20.9%
59.0
1,300.9
(250.7)
0.7
56.2
683.7
29.3
712.9
(164.1)
(1.9)
‑
1,925.6
32.4%
88.2
2,013.8
(414.8)
(1.2)
(16.0)
1,302.9
23.0%
2.8
1,305.6
(375.4)
1.3
16.0
589.1
2.8
591.9
(10.0)
(1.3)
‑
1,892.0
33.4%
5.6
1,897.6
(385.4)
0.0
€1,050.9
€546.9
€1,597.9
€931.5
€580.7 €1,512.2
Diluted net income per share (3)
€0.79
€0.41
€1.20
€0.70
€0.44
€1.13
5%
(2%)
7%
5%
(2%)
7%
7%
7%
7%
3%
2%
4%
12%
(4%)
8%
(5%)
N/A
(0%)
(33%)
(44%)
13%
12%
7%
3%
2%
4%
12%
(4%)
7%
2%
N/A
6%
8%
N/A
6%
5%
(1)
In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the deferred revenue adjustment of acquired companies;
(ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangibles assets and of tangible assets revaluation, share‑based
compensation expense and related social charges, the effect of adjusting the 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 and (iv) all adjustments to IFRS net income data reflect the combined effect of these adjustments, plus with
respect to net income and diluted net income per share, certain one‑time tax effects and the income tax effect of the non‑IFRS adjustments.
(2) The non‑IFRS percentage change compares non‑IFRS measures for the two different periods. In the event there is an adjustment to the relevant measure for only one of
the periods under comparison, the non‑IFRS change compares the non‑IFRS measure to the relevant IFRS measure.
(3) Based on a weighted average of 1,336.8 million diluted shares for the 2023 and 1,332.7 million diluted shares for the 2022.
181
332023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial review and prospects
Operating and Financial Review
Year ended December 31,
Share‑based
compensation
expense
and relates
social
charges
Lease
incentives
of acquired
companies
€15.7
94.4
73.6
62.2
€245.8
€0.8
1.3
0.5
0.2
€2.8
2023
IFRS
€(971.0)
(1,228.3)
(1,624.5)
(450.6)
2023
non‑IFRS
€(954.4)
(1,132.6)
(1,550.4)
(388.3)
Share‑based
compen sation
expense
and relates
social
charges
2022
IFRS
Lease
incentives
of acquired
companies
2022
non‑IFRS
€(919.4)
(1,087.2)
(1,502.6)
(435.2)
€8.6
62.6
48.0
48.8
€168.0
€(909.9)
€0.9
(1,023.4)
1.3
0.5 (1,454.2)
0.4
(386.1)
€3.0
(in millions of euros)
Cost of revenue
Research and development expenses
Marketing and sales expenses
General and administrative expenses
TOTAL
3.1.5
Variability in Quarterly Financial Results
in the future. Quarterly
licenses revenue growth
Dassault Systèmes’ quarterly
may have varied significantly in the past and may vary
significantly
licensing revenue
growth reflects business seasonality, clients’ decision
processes,
licensing mix and
timing and mix of multi‑year on‑premise software contracts.
Services revenue activity also vary significantly by quarter
reflecting clients’ decision processes as well as decisions
regarding service engagements to be performed by us or by
system integrators the Company works with.
licenses and subscription
Total software revenue growth has generally been less
sensitive to quarterly variation due to the significant level of
recurring software revenue, which comprises subscription
revenue and support revenue. IFRS and non‑IFRS Recurring
software revenue represented 80% and 78% of total
software revenue in 2023 and 2022, respectively but could
be subject to renewal delays. With the implementation
of IFRS 15 effective as of January 1, 2018, sequential
comparisons of recurring software revenue growth need,
however, to take into account the fact that a high proportion
of on‑premise, subscription software contracts renew
for an annual period as of January 1st. Therefore, under
IFRS 15 Dassault Systèmes records a higher percentage of
the annual amount of on‑premise subscription in the first
quarter. In addition, year‑over‑year growth comparisons
may be impacted by changes in the timing of on‑premise
subscription renewals.
IFRS
Non‑IFRS
For the Year Ended December 31,
For the Year Ended December 31,
(in millions of euros, except percentages)
2023
2023
2023
2023
1Q
2Q
3Q
4Q
FY
2023
1Q
2Q
3Q
4Q
2023
2023
2023
2023
FY
2023
Licenses and Other Software
Seasonality %
Subscription & Support
Seasonality %
Software Revenue
Seasonality %
278.9
211.0
351.9 1,087.7
246.0
19.4% 25.6% 22.6% 32.3% 100.0%
1,077.2 1,030.2 1,040.8 1,124.3 4,272.4
25.2% 24.1% 24.4% 26.3% 100.0%
211.0
351.9 1,087.7
246.0
19.4% 25.6% 22.6% 32.3% 100.0%
1,077.2 1,030.2 1,040.8 1,124.3 4,272.4
25.2% 24.1% 24.4% 26.3% 100.0%
€1,288.2 €1,309.0 €1,286.7 €1,476.1 €5,360.0 €1,288.2 €1,309.0 €1,286.7 €1,476.1 €5,360.0
24.0% 24.4% 24.0% 27.5% 100.0%
24.0% 24.4% 24.0% 27.5% 100.0%
278.9
Dassault Systèmes normally experiences its highest licenses
sales for the fourth calendar quarter. Therefore, software
revenue, total revenue, operating income, operating margin
and net income have generally been higher in the fourth
quarter of each year.
Acquisitions and divestitures can also cause the different
elements of revenue to vary from quarter to quarter. Rapid
changes in currency exchange rates can also cause reported
revenue, operating income and diluted net income per share
and their respective reported growth rates to vary from
quarter to quarter.
Therefore, it is possible that its quarterly total revenue could vary
significantly and that its net income could vary significantly,
in revenues, together with the
reflecting the change
effects of its investment plans. Refer to paragraphs 1.9.1.1
“Uncertain Global Economic Environment” and 1.9.1.11
“Variability in Dassault Systèmes’ Quarterly Operating Income”
in Risk Factors.
182
3DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial review and prospects
Operating and Financial Review
3.1.6
Capital Resources
Dassault Systèmes has a significant financial flexibility thanks
to its available cash and short‑term investments position and
strong level of cash flow generation. The main uses of cash
are for acquisitions, repayment of debt, cash dividends and
for the repurchase of treasury stocks, to be delivered as part
of performance share plans granted.
The Group’s net financial position improved to a net cash
position of €577,6 million as of December 31, 2023,
compared to €(227.0) million (net debt) on December 31,
2022, with an increase in cash and cash equivalents and
investments which stood at €3.57 billion
short‑term
on December 31, 2023, compared to €2.77 billion on
December 31, 2022.
As of December 31, 2023, Dassault Systèmes adjusted
net debt/IFRS EBITDAO ratio stood at 0.0x compared to
0.4x in 2022, based on an adjusted net debt including the
lease liabilities as reported under IFRS 16 of €32.6 million
(€807.7 million
IFRS EBITDAO of
€2.04 billion, compared to €2.08 billion in 2022.
in 2022) and an
The 2022 and 2023 IFRS EBITDAO and adjusted net debt
data are determined as follows:
(in millions of euros, except ratios)
Reported Financial Net Debt
Operating leases liabilities (IFRS 16)
ADJUSTED NET DEBT
Operating income
Amortization and impairment on intangible assets
Amortization and depreciation of tangible assets and right of use (IFRS 16)
REPORTED EBITDA
Share‑based payments, excluding related social charges
EBITDAO
ADJUSTED NET DEBT/EBITDAO
Year ended December 31,
2023
2022
(577.6)
610.2
€32.6
1,241.9
420.1
187.9
€1,849.9
189.8
€2,039.7
227.0
580.7
€807.7
1,302.9
412.7
198.1
€1,913.7
166.7
€2,080.4
0.0 x
0,4 x
On November 17, 2023, Standard & Poors Global Ratings
reaffirmed their “A” rating with a Stable outlook for Dassault
Systèmes SE and its long term debt.
The Group’s 2023 main sources of liquidity came from the
cash generated by the business, amounting to €1.57 billion
(€1.53 billion in 2022), from a €146.1 million capital increase
(€198.6 million
in 2022) as part of the “TOGETHER”
employee shareholding plan, and from €67.0 million proceeds
from exercise of stock options (2022: €62.0 million). During
2023, cash obtained from operations was used principally
for:
— repurchase of treasury shares for €375.4 million (2022:
€639.6 million) to neutralize the dilutive effect of the
share‑based compensation plans including the employee
shareholding plan;
— cash dividends of €276.2 million (2022: €223.5 million);
— capital
expenditures
of €145.3 million
(2022:
€132.3 million);
— payments for lease obligations of €89.4 million (2022:
€102.0 million);
— repayment of short term loans for €28.1 million (2022:
€1.14 billion including the repayment of the first tranche
of bonds and EUR & USD term loans).
Exchange rate fluctuations, in particular the US dollar, had
a negative conversion effect on cash and cash equivalent
balances of €67.5 million in 2023, compared to a positive
conversion effect of €70.6 million as of December 31, 2022.
The Group follows a conservative policy for investing its cash
resources, mostly relying on investment‑grade short‑term
maturity
investments from major banks and financial
institutions.
Refer also to the Consolidated Statements of Cash Flows
presented
in paragraph 4.1.1 “Consolidated Financial
Statements”.
183
332023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial review and prospects
Financial Objectives
3.2
Financial Objectives
Financial objectives for 2024
Dassault Systèmes financial objective for 2024 presented
below are on a non‑IFRS basis and reflect the key 2024
exchange rate assumptions for the US dollar and Japanese
yen as well as the potential impact of additional non‑
European currencies:
Total Revenue
Growth at current exchange rates
Growth at constant exchange rates*
Software revenue growth at constant exchange rates*
Of which licenses and other software revenue growth*
Of which recurring revenue growth*
Services revenue growth*
Operating margin
Diluted EPS
Growth at current exchange rates
Growth at constant exchange rates*
US dollar
Japanese yen (before hedging)
2024 year
€6.350 to €6.425 billion
7 – 8%
8 – 10%
8 – 10%
(1) – 3%
10 – 11%
9 – 10%
32.5 – 32.8%
€1.29 – €1.31
7 – 10%
10 – 12%
$1.10 per Euro
JPY 155.0 per Euro
*
Growth at constant exchange rates: refer to paragraph 3.1.2.1 “Definitions of Key Metrics Used” – Information 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 2024 non‑IFRS financial objectives set forth above do
not take into account the following accounting elements
below and are estimated based upon the 2024 principal
currency exchange rates above: no significant contract
liabilities write‑downs; share‑based compensation expenses,
including related social charges, estimated at approximately
€167 million (these estimates do not include any new stock
option or share grants issued after December 31, 2023);
amortization of acquired
intangibles and of tangibles
reevaluation, estimated at approximately €369 million,
largely
impacted by the acquisition of Medidata; and
lease incentives of acquired companies at approximately
€2 million.
The above objectives also do not include any impact from
income and expenses, net principally
other operating
comprised of acquisition,
integration and restructuring
impairment of goodwill and acquired
expenses, and
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, 2023.
The data presented above includes statements on the Group’s
operational framework and future financial performance
targets. These forward‑looking statements are based on
the views and assumptions of the Group’s management at
the date of this Universal registration document and involve
known and unknown risks and uncertainties. The Group’s
results and performance may be negatively and significantly
affected, and may differ from those mentioned in these
statements, due to a set of factors described in this Universal
registration document. For more information on the risks
incurred by Dassault Systèmes, refer to paragraph 1.9 “Risk
factors”.
2028 Financial objectives
On June 9th, 2023, during the 2023 Capital Markets Day,
Dassault Systèmes shared its long‑term view with the
investor community and announced its new strategic and
financial plan for the next five years.
The Company believes it is well positioned to capitalize on
significant long‑term opportunities to deliver on its ambitious
plan to grow revenue double‑digits and reach a non‑IFRS
EPS objective of €2.20 – €2.40 in 2028.
The Capital Markets Day webcast is available for replay on
Dassault Systèmes’ website, Investor relations section:
https://investor.3ds.com/capital‑markets‑day‑2023.
184
3DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial review and prospects
Interim and Other Financial Information
3.3
Interim and Other Financial Information
Dassault Systèmes has not published any quarterly or half‑year financial information since the date of its last audited
financial statements.
185
332023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial review and prospects
Interim and Other Financial Information
186
3DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial statements
4
FINANCIAL
STATEMENTS
4
4.1
4.1.1
4.1.2
4.2
4.2.1
4.2.2
4.2.3
4.2.4
Consolidated Financial Statements
Consolidated Financial Statements
Statutory Auditors’ Report on the Consolidated Financial Statements
Parent company financial statements
Parent company financial statements and notes
Selected financial and other information for Dassault Systèmes SE
over the last five years
Statutory Auditors’ Report on the parent company financial statements
Statutory Auditors’ Special Report on Related Party Agreements
4.3
Legal and Arbitration Proceedings
188
188
229
233
234
258
259
264
265
The consolidated and parent company financial statements below will be submitted for approval at the
General Meeting of Shareholders of Dassault Systèmes scheduled for May 22, 2024.
187
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Consolidated Financial Statements
4.1
Consolidated Financial Statements
4.1.1
Consolidated Financial Statements
Consolidated Statements of Income
(in millions of euros, except per share data)
Licenses and other software revenue
Subscription and support revenue
Software revenue
Services revenue
TOTAL REVENUE
Cost of software revenue
Cost of services revenue
Research and development expenses
Marketing and sales expenses
General and administrative expenses
Amortization of acquired intangible assets and of tangible assets revaluation
Other operating income and expense, net
OPERATING INCOME
Financial income, net
PROFIT BEFORE TAX
Income tax expense
NET INCOME
Attributable to:
Equity holders of the Group
Non‑controlling interests
Earnings per share
Basic earnings per share
Diluted earnings per share
Year ended December 31,
Note
2023
2022
4
8
9
10
1,087.6
4,272.4
5,360.0
591.4
5,951.4
(453.9)
(517.1)
(1,228.3)
(1,624.5)
(450.6)
(378.9)
(56.2)
1,241.9
59.0
1,300.9
(250.7)
€1,050.2
€1,050.9
€(0.7)
11
11
€0.80
€0.79
1,106.2
4,007.9
5,114.0
551.2
5,665.3
(463.8)
(455.5)
(1,087.2)
(1,502.6)
(435.2)
(401.9)
(16.0)
1,302.9
2.8
1,305.6
(375.4)
€930.2
€931.5
€(1.3)
€0.71
€0.70
188
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial statements
Consolidated Financial Statements
Year ended December 31,
Note
2023
2022
€1,050.2
€930.2
22
21
15
7.0
(1.0)
(303.8)
(297.9)
(9.8)
(22.3)
(1.2)
(33.3)
(331.1)
€719.1
(9.6)
1.9
450.9
443.2
38.5
0.6
(11.2)
27.9
471.1
€1,401.3
€719.9
€(0.8)
€1,402.3
€(1.0)
Consolidated Statements of Comprehensive Income
(in millions of euros)
NET INCOME
Unrealized gains (losses) on hedging reserves, net
Income tax related to unrealized gains (losses) on hedging reserves, net
Foreign currency translation adjustment
Other comprehensive income that are or may be reclassified to profit
or loss in subsequent periods
Remeasurement of defined benefit pension plans
Remeasurement of non‑consolidated equity investments
Income tax related to items above
Other comprehensive income that will not be reclassified to profit
or loss in subsequent periods
OTHER COMPREHENSIVE INCOME, NET OF TAX
TOTAL COMPREHENSIVE INCOME
Attributable to:
Equity holders of the Group
Non‑controlling interests
189
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Consolidated Financial Statements
Consolidated Balance Sheets
(in millions of euros)
Assets
Cash and cash equivalents
Trade accounts receivable, net
Contract assets
Income tax receivable
Other current assets
TOTAL CURRENT ASSETS
Property and equipment, net
Other non‑current assets
Deferred tax assets
Intangible assets, net
Goodwill
TOTAL NON‑CURRENT ASSETS
TOTAL ASSETS
(in millions of euros)
Liabilities and equity
Trade accounts payable
Accrued compensation and other personnel costs
Contract liabilities
Borrowings, current
Income tax payable
Other current liabilities
TOTAL CURRENT LIABILITIES
Deferred tax liabilities
Borrowings, non‑current
Other non‑current liabilities
TOTAL NON‑CURRENT LIABILITIES
Common stock
Share premium
Treasury stock
Retained earnings and other reserves
Other comprehensive income, net of tax
Total parent shareholders’ equity
Non‑controlling interests
TOTAL EQUITY
TOTAL LIABILITIES
190
Year ended December 31,
Note
2023
2022
12
13
13
13
14
15
10
16
17
13
19
18
10
19
18
22
€3,568.3
1,707.9
26.8
197.1
280.0
5,780.1
882.8
232.4
80.2
2,842.1
4,805.0
8,842.3
€2,769.0
1,661.6
20.3
109.7
283.7
4,844.3
819.9
228.9
94.4
3,302.4
4,971.1
9,416.8
€14,622.5
€14,261.1
€230.5
635.1
1,479.3
950.1
18.2
247.7
3,561.0
100.1
2,040.6
1,074.7
3,215.4
133.8
1,173.2
(756.8)
7,170.1
113.8
7,834.1
11.9
7,846.1
€216.3
593.5
1,536.6
258.6
38.9
237.2
2,881.0
328.5
2,737.4
989.3
4,055.2
133.5
1,128.3
(703.7)
6,307.8
444.8
7,310.7
14.2
7,324.8
€14,622.5
€14,261.1
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Consolidated Statements of Cash Flows
(in millions of euros)
NET INCOME
Adjustments for non‑cash items
Changes in operating assets and liabilities
NET CASH FROM OPERATING ACTIVITIES
Additions to property, equipment and intangible assets
Payment for acquisition of businesses, net of cash acquired
Other
NET CASH USED IN INVESTING ACTIVITIES
Proceeds from exercise of stock options
Cash dividends paid
Repurchase and sale of treasury stock
Capital increase
Acquisition of non‑controlling interests
Proceeds from borrowings
Repayment of borrowings
Repayment of lease liabilities
NET CASH USED IN FINANCING ACTIVITIES
Effect of exchange rate changes on cash and cash equivalents
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
CASH AND CASH EQUIVALENTS AT END OF PERIOD
Supplemental disclosure
Income taxes paid
Cash paid for interest
Total cash outflow for leases
Financial statements
Consolidated Financial Statements
Year ended December 31,
Note
2023
2022
23
23
14, 16
23
22
22
22
19
19
€1,050.2
644.2
(129.2)
1,565.2
(145.3)
(16.1)
(0.3)
(161.6)
67.0
(276.2)
(375.4)
146.1
(0.9)
20.3
(28.1)
(89.4)
(536.7)
(67.5)
799.3
€930.2
677.6
(82.6)
1,525.2
(132.3)
(46.4)
(35.2)
(213.9)
62.0
(223.5)
(639.6)
198.6
(1.8)
257.8
(1,143.9)
(102.0)
(1,592.4)
70.6
(210.5)
2,769.0
2,979.5
€3,568.3
€2,769.0
10
€(415.3)
€(35.7)
€(117.5)
€(317.4)
€(22.4)
€(121.8)
191
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Consolidated Financial Statements
Consolidated Statements of Shareholders’ Equity
(in millions of euros)
Common
stock
Share
premium
Treasury
stock
Note
Retained
earnings
and other
reserves
Other com‑
prehensive
income,
net of tax
Total
parent
shareholders’
equity
Non‑
controlling
interests
Total
equity
DECEMBER 31, 2021
€133.3 €1,108.0 €(730.5)
€5,712.6
€(26.0)
€6,197.3
€13.7 €6,211.0
Net income
Other comprehensive income, net of tax
TOTAL COMPREHENSIVE INCOME
Dividends
Capital increase
Capital decrease
Exercise of stock options
Treasury stock transactions
Share‑based compensation
Transactions with non‑controlling
interests
Other changes
DECEMBER 31, 2022
Net income
Other comprehensive income, net of tax
TOTAL COMPREHENSIVE INCOME
Dividends
Capital increase
Capital decrease
Exercise of stock options
Treasury stock transactions
Share‑based compensation
Transactions with non‑controlling
interests
Other changes
DECEMBER 31, 2023
22
22
22
6, 7
22
22
22
6, 7
‑
‑
‑
‑
0.4
(0.4)
0.2
‑
‑
‑
‑
‑
‑
‑
‑
‑
198.2
(233.2)
55.3
‑
‑
‑
‑
233.7
‑
(206.9)
‑
931.5
‑
931.5
(223.5)
‑
‑
‑
(194.2)
166.5
‑
‑
(52.8)
(32.3)
€133.5 €1,128.3 €(703.7) €6,307.8
‑
‑
‑
‑
‑
‑
‑
‑
0.5
(0.5)
0.3
‑
‑
‑
‑
‑
‑
‑
‑
‑
145.6
(171.4)
70.7
‑
‑
‑
‑
171.8
‑
(224.9)
‑
1,050.9
‑
1,050.9
(276.2)
‑
‑
‑
(151.5)
184.1
‑
470.8
470.8
‑
‑
‑
‑
‑
‑
‑
‑
€444.8
‑
(331.1)
(331.1)
‑
‑
‑
‑
‑
‑
931.5
470.8
1,402.3
(223.5)
198.6
‑
55.6
(401.0)
166.5
(1.3)
0.3
(1.0)
‑
‑
‑
0.3
‑
0.2
930.2
471.1
1,401.3
(223.5)
198.6
‑
55.9
(401.0)
166.7
(52.8)
(32.3)
€7,310.7
0.9
‑
(51.8)
(32.3)
€14.2 €7,324.8
1,050.9
(331.1)
719.9
(276.2)
146.1
‑
71.0
(376.4)
184.1
(0.7)
(0.1)
(0.8)
1,050.2
(331.1)
719.1
‑
‑
‑
0.2
‑
0.3
(276.2)
146.1
‑
71.2
(376.4)
184.5
‑
‑
‑
‑
€133.8 €1,173.2 €(756.8)
‑
‑
(2.3)
57.3
€7,170.1
‑
‑
€113.8
(2.3)
57.3
€7,834.1
(2.0)
‑
(4.3)
57.3
€11.9 €7,846.1
Analysis of changes in shareholders’ equity
related to components of the other comprehensive income
(in millions of euros)
DECEMBER 31, 2021
Variations
DECEMBER 31, 2022
Variations
DECEMBER 31, 2023
Non‑
consolidated
equity
investments
Hedging
reserves
Foreign
currency
translation
adjustment
Actuarial
gains
and losses
Total
attributable
to parent
shareholders
Non‑
controlling
interests
Other com‑
prehensive
income,
net of tax
€(3.8)
€14.8
€34.7
€(71.7)
€(26.0)
€(0.0)
€(26.0)
0.6
€(3.2)
(25.4)
€(28.6)
(7.7)
€7.1
6.0
€13.1
450.6
€485.3
(303.8)
€181.5
27.3
€(44.4)
(7.8)
€(52.2)
470.8
€444.8
(331.1)
€113.8
0.3
€0.2
(0.1)
€0.2
471.1
€445.1
(331.1)
€113.9
192
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial statements
Consolidated Financial Statements
Notes to the Consolidated Financial Statements
The accompanying notes are an integral part of these consolidated financial statements.
Note 1
Description of Business
194
Note 15
Other Non‑Current Assets
Note 2
Material accounting policy information
194
Note 16
Intangible Assets, Net
Note 3
Segment and Geographic Information
200
Note 17
Goodwill
Note 4
Software Revenue
202
Note 18
Other Liabilities
Note 5
Government Grants
202
Note 19
Borrowings
Note 6
Personnel Costs
203
Note 20
Derivatives and Currency
and Interest Rate Risk Management
Note 7
Share‑based Compensation
203
Note 8
Other Operating Income and Expense, Net 208
Note 21
Post‑employment Benefits
Note 22
Shareholders’ Equity
214
214
215
217
218
220
221
224
Note 9
Financial Income, Net
Note 10
Income Taxes
Note 11
Earnings per Share
Note 12
Cash and Cash Equivalents
and Short‑term Investments
Note 13
Trade Accounts Receivable,
Net, Contract Balances
and Other Current Assets
Note 14
Property and Equipment, Net
208
209
211
Note 23
Consolidated Statements of Cash Flows
225
Note 24
Commitments and Contingencies
Note 25
Related‑Party Transactions
211
Note 26
Principal Statutory Auditors’ Fees
and Services
226
226
227
Note 27
Principal Dassault Systèmes Companies 228
212
213
193
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
Note 1
Description of Business
The Group provides broad end‑to‑end software solutions
and services: its platform‑based virtual twin experiences
combine modeling, simulation, data science and collaborative
innovation to support companies in the three sectors it
serves, namely Manufacturing Industries, Life Sciences &
Healthcare, and Infrastructure & Cities.
These three sectors comprise twelve industries:
— Manufacturing Industries: Transportation & Mobility;
Aerospace & Defense; Marine & Offshore; Industrial
Equipment; High‑Tech; Home & Lifestyle; Consumer
Packaged Goods – Retail. In Manufacturing Industries,
Dassault Systèmes helps customers virtualize their
operations, improve data sharing and collaboration across
their organization, reduce costs and time‑to‑market, and
become 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 Medtech;
— Infrastructure & Cities: Infrastructure, Energy & Materials;
Architecture, Engineering & Construction; Business
Services; Cities & Public Services. In Infrastructure &
Cities, the Group supports the virtualization of the sector
in making its industries more efficient and sustainable,
and creating desirable living environments.
Dassault Systèmes SE (LEI code: 96950065LBWY0APQIM86)
is a European company (Societas Europaea), incorporated
under the laws of France on June 9, 1981 for a 99‑year term
starting on the date of its registration, until August 4, 2080.
The Company’s registered office is located at 10, rue Marcel
Dassault, 78140 Vélizy‑Villacoublay, France.
Dassault Systèmes SE shares are listed on Euronext Paris.
Groupe
Industriel Marcel Dassault SAS (GIMD), which
belongs to the Dassault family, is the main shareholder.
Note 2
Material accounting policy information
Basis of preparation and consolidation
The accompanying consolidated financial
statements
were prepared in accordance with International Financial
Reporting Standards (“IFRS”) as adopted by the European
Union as of December 31, 2023. These consolidated financial
statements were established by the Board of Directors on
March 12, 2024.
The consolidated financial statements are presented in
millions of euros except where otherwise indicated. Some
total rounding difference may occur.
The consolidated financial statements include the accounts
of Dassault Systèmes SE and its subsidiaries. Companies
over which the Group has control are fully consolidated.
The Group controls an entity when (i) it has power over
this entity, (ii) is exposed to or has rights to variable returns
from its involvement with that entity, and (iii) has the ability
to use its power over that entity to affect the amount of
those returns. Companies over which the Group exercises
significant influence are accounted for under the equity
method.
Intercompany transactions and balances are
eliminated.
Impact of significant recently issued
accounting standards
New standards, interpretations or amendments effective
beginning on January 1, 2023 had no significant impact on
the Group’s consolidated financial statements.
The Group undertakes no early application of any standard
or interpretation or associated amendments which were
already published in the Official Journal of the European
Union at December 31, 2023.
Standards, amendments and
interpretations published
by the IASB and not yet approved by the EU do not have a
significant impact on the consolidated financial statements
at December 31, 2023.
Summary of significant accounting policies
Use of estimates
The preparation of financial statements
in conformity
with IFRS requires management to make estimates and
assumptions that affect the reported amounts of assets and
liabilities, revenue and expenses and disclosure of contingent
assets and liabilities at the date of the financial statements.
194
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Consolidated Financial Statements
Areas
involving the use of significant estimates and
assumptions mainly include: assessing product lifecycles;
identifying the different elements comprising a software
solution arrangement, including the distinction between
upgrades/enhancements, new products and services,
contract price allocation to the different elements based
on their standalone selling price and determining the
revenue recognition date of those elements; determining
when technological feasibility is achieved for its products;
estimating the recoverable amount of goodwill; determining
the nature, fair value and useful life of acquired intangible
assets in a business combination; determining assumptions
to estimate the fair value of share‑based compensation;
assessing the recognition of deferred tax assets; and making
reasonable estimates about the ultimate resolution of the
Group’s tax uncertainties based on current tax laws and the
Group’s interpretation thereof. Actual results and outcomes
could differ from management’s estimates and assumptions.
Foreign currency adjustments
The functional currency of the Group’s foreign subsidiaries is
generally the applicable local currency. Assets and liabilities
with functional currencies other than the euro are translated
into euro equivalents at the rate of exchange in effect on
the balance sheet date. Revenues, expenses and cash flows
are translated at the average exchange rates for the year
unless this average is not a reasonable approximation of the
cumulative effect of the rates prevailing on the transaction
dates, in which case revenues, expenses and cash flows
are translated at the rate on the dates of the transactions.
Translation gains or losses are recorded in Other items in
shareholders’ equity.
Exchange differences on the settlement or retranslation
of monetary items in a currency other than the Group’s
and its subsidiaries’ functional currency are recorded in the
statement of income.
Revenue recognition
The Group derives revenue from two primary sources:
(i) licenses, other software revenue (which includes the
development of additional functionalities of standard
products requested by clients), subscription and support
(which includes software license updates and technical
support); (ii) consulting and training services.
Revenue is recognized when, or as, control of a promised
product or service is transferred to a client, in an amount that
reflects the consideration to which the Group expects to be
entitled in exchange for those products or services.
Group’s products are also sold by value‑added resellers
that are most often assessed as principal in the transaction
because they generally have the primary responsibility for
fulfillment to the end‑customer. As a result, most of the time
the Group recognizes revenue in the amount of the fee it
expects to be entitled to, i.e. the consideration paid by the
distributor, assuming all other revenue recognition criteria
are met.
Licenses, subscription, support and other software revenue
Software
license revenue represents fees earned from
granting customers licenses to use the Group’s software. It
includes license revenue of perpetual and periodic license sales
of software products and is recognized at a point in time for
an arrangement when control is transferred to the client.
Subscription contracts generally have a term of between
one‑year and five‑year, and contain
two separate
performance obligations pertaining to on premise software
license and support. The revenue from such arrangements
is recognized in line with revenue from arrangements with
multiple performance obligations.
Subscription revenue also is derived from access to cloud
solution contracts including remote access to a software
solution, hosting, support services, and managed services
to run cloud solution. Revenue from cloud subscription is
generally recognized linearly over the contractual term.
Support revenue represents periodic fees associated with
the sale of unspecified product updates on a when‑and‑if‑
available basis and technical support. Support agreements
are entered into in connection with the initial software
license purchase. Support may be renewed by the customer
at the conclusion of each term. Revenue from support is
recognized on a straight‑line basis over the term of the
support agreement as the Group has a standing ready
obligation to provide services.
Other software revenue mainly relates to the development
of additional functionalities of standard products requested
by clients and is recognized when the development work is
performed.
Revenues are disclosed net of taxes collected from customers
and remitted to governmental authorities.
Recurring fees, for subscription and support, are reported
within “Software Revenue”.
The Group accounts for a contract with a client when there
is a written agreement that creates legally enforceable rights
and obligations, including payment terms, when the contract
has commercial substance and when collection consideration
is probable. A performance obligation is a promise in a
contract with a client to transfer products or services that are
distinct from the other promises of the contract.
Revenue under arrangements with multiple performance
licenses,
obligations, which typically
support and/or services agreements sold together
is
allocated to each distinct performance obligation based on
their standalone selling price.
include software
195
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
The stand‑alone selling price is the price at which the Group
would sell a promised product or service separately to a
client. The Group generally establishes stand‑alone selling
price based on the observable prices of products or services
in comparable circumstances to similar
sold separately
clients. Estimating stand‑alone selling price is a formal
process that includes review and approval by the Group’s
management.
In certain instances, e.g. perpetual software licenses only
sold bundled with one year of support, the Group is not
able to establish a standalone selling price range based
on observable prices. The stand‑alone selling price is then
determined by applying the residual approach.
When a sale of a license goes along with a service essential to
the software functionality, the two performance obligations
(software and service) are not distinct. Therefore, the license
revenue is recognized in accordance with the pattern of
recognition of the service obligation.
Services Revenue
Services revenue consist primarily of fees from consulting
services in process optimization and in methodology for
design, deployment and support, and training services.
Services generally do not require significant modification
or customization of software products and are accounted
for separately to the extent they are not essential to the
functionality of software products.
Performance obligation from fixed price contracts are usually
satisfied over the time. The revenue is recognized using
percentage of completion based on the labor costs incurred
to date as a percentage of the total estimated labor costs to
fulfill the contract.
Service revenues derived from time and material contracts
are recognized over the time on an output basis as labor
hours are delivered or direct project expenses are incurred.
Incremental Costs of Obtaining a Contract
The Group generally does not capitalize the incremental
costs incurred to obtain a contract (e.g. variable remuneration
of the sales force), and expenses them as incurred, as
contracts with customers generally have a contractual period
of 12 months or less.
For other
long term contracts with customers, the
Group capitalizes the expenses associated with variable
is
compensation paid to
incremental to obtaining and renewing these contracts.
internal sales personnel that
Contract Assets/Liabilities and Accounts Receivable
The Group classifies the right to consideration in exchange
for products or services transferred to a client as either
a receivable or a contract asset. A receivable is a right to
consideration that is unconditional as compared to a contract
asset, which is a right to consideration that is conditional
upon factors other than the passage of time.
The majority of the Group’s contract assets represents
unbilled amounts related to fixed price services contracts
when revenue recognized exceeds the amount billed to the
client, and the right to consideration is subject to milestone
completion or client acceptance.
The amount of billing in excess of revenue recognized is
classified as contract liabilities.
Share‑based compensation
The Group recognizes compensation expense for share‑based
compensation awards expected to vest on a straight‑line
basis over the requisite service period of the entire award.
Forfeitures are estimated at the time of grant and revised, if
necessary, in subsequent periods if actual forfeitures differ
from initial estimate.
Stock options are measured at fair value on the date of the
grant using an option‑pricing model based on assumptions
made by management on expected volatility, expected
option life and distributed dividends.
Performance shares are measured at fair value based on
the quoted price of the Group’s common stock on the date
of grant. The fair value also includes the impact of certain
conditions based on an option‑pricing model.
Vesting conditions excluded from the fair value measurement
are taken into account to estimate the number of shares that
will eventually vest. At the end of each reporting period,
the Group reviews this estimate and records the impact
of changes to original estimate, if any, in the statement of
income.
For performance shares plan that allows the beneficiaries to
acquire shares either upon satisfaction of a market condition
or a non‑market vesting condition, the Group estimates
the fair value of the equity instrument at grant date for
each possible outcome, and accounts for the share‑based
compensations based on the most likely outcome at the end
of each reporting period.
Cost of software revenue
Cost of software revenue primarily includes software license
expense for software products included in the Group’s
software, maintenance costs and delivery expense.
196
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Consolidated Financial Statements
Research and development
Income taxes
Research costs are expensed as incurred.
Costs incurred to develop computer software products
include mainly payroll and other headcount‑related costs
associated with development of the Group’s products. They
also include amortization expense, lease and maintenance
costs of computer equipment used for product development,
software expenditures and costs of information technology
and communication.
Due to specificities in the software industry, the Group
has determined that technological feasibility is the key
criteria to capitalize development expenditure as
is
generally the last criteria to be met. Currently the risks and
uncertainties inherent in the software development process
make it difficult to demonstrate technological feasibility
before a working prototype has been completed, which
generally occurs shortly before the commercial release of its
software products. As a consequence, costs incurred after
technological feasibility is established that could potentially
be capitalized are not material.
it
Government grants
The Group receives grants from certain governmental
authorities to finance certain research and development
activities, including research and development tax credits in
France that are treated as government grants. Government
grants are recognized as a reduction of research and
development costs or cost of services and other revenue
when the qualifying research and development activities
have been performed and there is reasonable assurance that
the grants will be received.
Other operating income and expense, net
The Group distinguishes income and expense that are
unusual, infrequent or generally non‑recurring in nature
in the consolidated statement of income. Such income and
expense include the impact of restructuring activity and
other generally non‑recurring events, such as gain or loss
on sale of subsidiaries, impairment of goodwill or acquired
intangible assets, expenses directly related to acquisitions
and acquisitions projects, and expenses related to relocation
activities and reorganizations of the Group’s premises.
Deferred income tax is recognized using the liability method
on temporary differences arising between the tax bases
of assets and liabilities and their carrying amounts in the
consolidated financial statements. However, deferred income
tax is not accounted for if it arises from initial recognition
of an asset or liability in a transaction other than a business
combination that, at the time of the transaction, affects
neither accounting nor taxable profit or loss. Deferred income
tax is determined using tax rates and laws that have been
enacted or substantially enacted by the balance sheet date
and are expected to apply when the related deferred income
tax asset is realized or the deferred income tax liability is
settled.
Deferred tax assets are recognized for all deductible
temporary differences, the carry forward of unused tax
credits and any unused tax losses. Deferred income tax
assets are recognized only to the extent that it is probable
that future taxable profit will be available against which the
temporary differences can be utilized.
investments
Deferred income tax is provided on temporary differences
arising on
in subsidiaries and associates,
except where the timing of the reversal of the temporary
difference is controlled by the Group and it is probable that
the temporary difference will not reverse in the foreseeable
future.
Following the amendment “international tax reform –
Pillar Two model rules (amendments to IAS 12)”, adopted
by the European Union in November 2023, as a temporary
exception to the provisions of IAS 12, the Group does not
recognize deferred tax assets and liabilities related to Pillar
Two income taxes.
Allowance for doubtful accounts and loans receivable
The allowance for doubtful accounts and loans receivable
reflects the Group’s best estimate of probable losses inherent
in the receivable balance. The Group applies the simplified
approach as permitted by IFRS 9 to account for the expected
losses on trade accounts receivables and establishes
a statistical model based on historical experience and
prospective information including financial difficulties and
other currently available evidence.
Financial income (loss), net
Financial instruments
Other financial income and expense primarily include the
interest expenses related to financing operations and lease
liabilities. Are also included the impact of remeasuring
financial instruments at fair value, exchange gains and losses
on monetary items and change in fair value of derivative
financial instruments not qualified for hedge accounting.
Fair Value – The carrying amount of cash and cash
equivalents, short‑term investments, accounts receivable,
accounts payable and accrued expenses approximate fair
value, due to the short‑term maturities of such instruments.
Foreign exchange options and forward contracts, which are
designated and serve as hedges, are recorded at their fair
market value. Fair value is measured based on the following
fair value hierarchy: level 1: quoted price in active markets;
level 2: inputs observable directly or indirectly, other than
quoted price included in level 1; level 3: inputs not based
on observable market data. Cash, cash equivalents and
short‑term investments are measured using the level 1 fair
value. Derivative
instruments are measured using the
level 2 fair value. Other investments that are not equity
197
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
method investments are measured using the level 3 fair
value.
Cash and Cash Equivalents and Short‑Term Investments –
The Group considers deposits with banks, investments in
money market mutual funds and marketable debt securities
with short‑term maturities to be cash equivalents since they
are readily convertible to a known amount of cash and are
subject to an insignificant risk of change in value. Other
marketable debt securities and mutual funds that do not
qualify as cash equivalents are considered to be short‑term
investments and are generally classified as trading securities
with changes in fair value recorded in Interest income and
expense, net.
Non‑Current Financial Assets – The Group elected the
classification at fair value through Other comprehensive
income for all its investments in non‑consolidated equities.
As such, net gains and losses related to equity securities are
recognized in Other comprehensive income and are never
reclassified to profit or loss.
Derivative
Instruments – The Group uses derivative
instruments in particular to manage exposures to foreign
currency and interest rates. Derivative instruments are
measured at their fair value and changes in the fair value
affect the consolidated statements of income unless specific
hedge accounting criteria are met. Changes in the fair value
of derivatives designated as cash‑flow hedges are reported
as a component of shareholders’ equity until the hedged
item is recognized in earnings. Hedging a net investment
allows the Group to hedge the exposure to adverse changes
in the fair value of an investment made abroad in a currency
other than the Group’s operating currency (i.e. IFRS 9).
For this type of hedge, the effective portion of the gain
or loss on the hedging instrument is recognized in Other
comprehensive
is
recognized in the consolidated income statement. These
gains and losses offset the translation differences recorded
at the consolidation of the foreign subsidiary.
ineffective portion
income, and the
Property and equipment
Property and equipment are recorded at cost and depreciated
using the straight‑line method over their estimated useful
lives: computer equipment, two to eight years; office
furniture and equipment, five to ten years; buildings, forty to
fifty years; leasehold improvements are depreciated over the
shorter of the life of the assets or the remaining lease term.
Repair and maintenance costs are expensed as incurred.
Leases are recorded under property, plant and equipment
as a right‑of‑use asset. The asset is recognized at the
commencement date of the contract against a lease liability,
adjusted for direct costs, prepaid rents, lease incentives
received and estimated costs of dismantling and restoration.
These assets are amortized on a straight‑line basis over
the lease term, which corresponds to the non‑cancellable
period, together with the reasonably certain extension and
termination options, taking into account the penalties that
would be incurred upon termination. Under this model, the
198
depreciation expense of assets is accounted for in operating
expense, and the cost of the debt towards the lessor is
accounted for under financial expense.
Intangible assets
Intangible assets primarily include acquired technology,
contractual customer relationships and computer software.
intangible assets are capitalized and
Costs related to
their
the straight‑line method over
amortized using
estimated useful lives, which range from two to nineteen
years. No significant intangible assets have been identified
with an indefinite useful life.
Business combinations and goodwill
Business combinations are accounted for using the purchase
method. The consideration transferred is measured as the
fair value of the assets transferred, equity instruments issued
and liabilities incurred or assumed on the acquisition date.
Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured
initially at fair value at the date of acquisition, irrespective of
the extent of any non‑controlling interest.
Goodwill is initially measured at cost being the excess of the
consideration transferred of the business combination over
the Group’s share in the net fair value of the acquiree’s net
identifiable assets.
When a business combination with permanent non‑
controlling interest includes a put option related to these
same non‑controlling interests, a liability is recognized
in the consolidated balance sheet along with a decrease
in the consolidated reserves. Subsequent fluctuations of
this put option related to potential changes in estimates
or unwinding of discounts are also booked in consolidated
reserves. Any further acquisition of minority interests is
considered as a transaction between shareholders and is
therefore not subject to re‑evaluation.
initial recognition, goodwill
After
is measured at cost
less any accumulated impairment losses. For the purpose
of impairment testing, goodwill acquired in a business
combination is, from the acquisition date, allocated to
each of the Group’s cash generating units or group of cash
generating units that are expected to benefit from the
synergies of the combination, irrespective of whether other
assets or liabilities of the acquiree are assigned to those
units.
is
tested whenever events or changes
Goodwill
in
circumstances indicate that the carrying amount may not
be recoverable, and at a minimum annually. For the purpose
of the impairment test, the Group relies upon projections
of future cash flows and takes into account assumptions
regarding the evolution of the market and its ability to
successfully develop and commercialize
its products.
Changes in market conditions could have a major impact
on the valuation of assets and liabilities and could result in
additional impairment losses.
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Consolidated Financial Statements
Provisions
Provisions are recognized as liabilities to cover probable
outflows of resources that can be estimated and that result
from present obligations (legal, contractual or constructive)
relating to past events. In cases where a potential obligation
resulting from past events exists, but where occurrence
of the outflow of resources is not probable or where the
amount cannot be reliably estimated, a contingent liability is
disclosed among the Group’s commitments.
The amount of the provision provided is the best estimate of
the outflow of resources required to extinguish this present
obligation.
Treasury shares
Own equity instruments which are reacquired (treasury
shares) are recognized at cost and deducted from equity.
Gains and losses on the purchase, sale, issue or cancellation
of the Group’s own equity instruments are credited or
charged to shareholders’ equity and are not recognized in the
statement of income.
Lease liabilities
Lease liabilities are recognized at the commencement
date of the contracts. The lease term is determined as
the non‑cancellable period, together with the reasonably
certain extension and termination options, taking into
incurred upon
account the penalties that would be
termination. The amount of lease liability represents the
present value of lease payments over the lease term less
any lease incentives receivable, adjusted by the expected
penalties payable under a termination option which is
reasonably certain to be exercised.
Borrowings
Borrowings are recognized initially at fair value, net of
transaction costs incurred. Any difference between the
recorded amount and the redemption value is amortized into
income over the period of the borrowing using the effective
interest rate method.
Post‑employment benefits
The Group’s payments for defined contribution plans are
recorded as expenses for the relevant period.
For defined benefit plans concerning post‑employment
benefits, the Group uses the projected unit credit method
to determine the present value of its obligations. Under
this method, benefits are attributed to periods of service
according to the plan’s benefit formula. However, if an
employee’s service in later years will earn a materially higher
level of benefit than in earlier years, benefits are attributed
to periods of service on a straight‑line basis. The measured
period of service is the vesting period for obtaining the
capped rights.
Actuarial gains and losses are charged or credited to equity
in Other comprehensive income in the period in which they
arise.
The future payments for employee benefits are measured
on the basis of future salary increases, retirement age,
mortality and length of employment with the Group, and
are discounted at a rate determined by reference to yields
on long‑term high quality corporate bonds of a duration
corresponding to the estimated duration of the benefit plan
concerned.
The net expense for the year, corresponding to the sum of
the current service costs, past service costs and net interest
expense or income, is charged in full to operating income.
Addressing climate change risks
The Group estimated the consequences of climate change on
its business and its objectives of reducing its carbon footprint
and has taken into account the results of this evaluation for
the preparation of its financial statements. The analyses
conducted on the various climate scenarios reveal that in
the short and medium term, the overall level of risk is low
for Dassault Systèmes given the typology of its activities.
The same analyses show the absence of element that could
question the useful lives of its property and equipment and
used for the preparation of its financial statements.
Risks and opportunities, which are known today, of the
transition of Dassault Systèmes activities have been
reviewed for the preparation of the Group’s strategic
forecasts on the basis of which the impairment tests of
goodwill are carried out (described in Note 17 Goodwill).
At this stage, no significant impact on the judgments and
estimates have been retained to develop these tests in the
absence of significant downward or upward effects expected
on Group’s revenue growth or operating income in the short
and medium term.
In addition, the Group has set itself the objective of achieving
carbon neutrality by 2040. This commitment does not meet
the definition of a provision under IFRS.
199
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
Note 3
Segment and Geographic Information
information
Operating segments are components of a group for which
discrete financial
is available and whose
operating results are regularly reviewed by management
to assess performance and allocate resources. Dassault
Systèmes operates in a single operating segment, the sale
of software solutions and services, which aim is to offer
customers an
innovation process, from the
development of a new concept to the realistic experience of
the resultant product, through all stages of detailed design,
scientific simulation and manufacturing, thanks to the
3DEXPERIENCE platform.
integrated
The assessment of the operating segment’s performance
is based on the Group’s supplemental non‑IFRS financial
information. The accounting policies used differ from those
described in Note 2 Material accounting policy information
as follows:
— the measures of operating segment revenue and income
include all revenue that would have been recognized
by acquired companies had they remained stand‑alone
entities but which is partially excluded from Group
revenue to reflect the fair value of obligations assumed;
— the measure of operating segment income excludes:
– amortization of acquired intangible assets and of the
revaluation of tangible assets,
– share‑based compensation expense and associated
payroll taxes (refer to Note 6 Personnel Costs and
Note 7 Share‑based Compensation),
– and other operating income and expense, net (refer to
Note 8 Other Operating Income and Expense, Net);
— the measure of operating segment income takes into
account the impact of the lease incentives, including
rent‑free periods, which are not recognized
in the
right‑of‑use asset under a business combination.
(in millions of euros)
TOTAL REVENUE FOR OPERATING SEGMENT
Adjustment for unearned revenue of acquired companies
REPORTED TOTAL REVENUE
(in millions of euros)
INCOME FOR OPERATING SEGMENT
Adjustment for unearned revenue of acquired companies
Amortization of acquired intangible assets and of revaluation of tangible assets
Share‑based compensation expense and related payroll taxes
Other operating income and expense, net
Lease incentives of acquired companies
REPORTED OPERATING INCOME
Year ended December 31,
2023
2022
€5,951.4
€5,665.5
‑
€5,951.4
(0.2)
€5,665.3
Year ended December 31,
2023
2022
€1,925.6
€1,892.0
‑
(378.9)
(245.8)
(56.2)
(2.8)
€1,241.9
(0.2)
(401.9)
(168.0)
(16.0)
(3.0)
€1,302.9
200
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Consolidated Financial Statements
The geographic breakdown of the Group’s financial data is established based on the geographic location of the consolidated
companies and is as follows:
(in millions of euros)
2023
Europe
of which France
of which Germany
Americas
of which the United States
Asia
of which Japan
TOTAL
2022
Europe
of which France
of which Germany
Americas
of which the United States
Asia
of which Japan
TOTAL
Total revenue
Total assets
Additions
to property,
equipment and
intangibles
€1,746.5
898.3
254.3
3,132.8
3,076.6
1,072.2
394.1
€5,951.4
€1,414.1
776.8
223.7
3,190.9
3,143.4
1,060.2
425.4
€5,665.3
€5,784.4
2,880.8
544.7
8,000.3
7,846.3
837.7
125.5
€14,622.5
€4,765.8
2,145.9
523.7
8,709.7
8,542.1
785.6
100.9
€14,261.1
€217.6
186.5
10.3
36.3
34.8
51.1
20.4
€305.0
€85.2
60.5
5.3
96.4
92.4
33.5
3.1
€215.1
The Group also receives data that identifies the location of the Group’s end‑user customers. Using such information, revenue
by geographic area would be as follows:
(in millions of euros)
Europe
of which France
of which Germany
Americas
of which the United States
Asia
of which Japan
TOTAL REVENUE
Year ended December 31,
2023
2022
€2,262.0
591.0
494.0
2,420.0
2,261.9
1,269.4
475.3
€5,951.4
€2,030.5
499.3
453.3
2,318.5
2,164.4
1,316.3
516.4
€5,665.3
201
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Consolidated Financial Statements
Note 4
Software Revenue
Software revenue is comprised of the following:
(in millions of euros)
Licenses and other software revenue
Subscription and support revenue*
SOFTWARE REVENUE
Year ended December 31,
2023
2022
€1,087.6
4,272.4
€5,360.0
€1,106.2
4,007.9
€5,114.0
*
In 2023, corresponds to €500.5 million at a point in time and €3,771.9 million over time, to be compared to €411.3 million and €3,596.6 million respectively in 2022.
The breakdown of software revenue by main product line is as follows:
(in millions of euros)
Industrial Innovation
Life Sciences
Mainstream Innovation
SOFTWARE REVENUE
Note 5
Government Grants
Year ended December 31,
2023
2022
€2,908.0
1,158.9
1,293.2
€5,360.0
€2,719.1
1,126.2
1,268.8
€5,114.0
Government grants are recorded in the consolidated statements of income as a deduction from research and development
expenses and to other expenses, as follows:
(in millions of euros)
Research and development
Other expenses
TOTAL GOVERNMENT GRANTS
Year ended December 31,
2023
€38.3
€7.4
€45.8
2022
€36.9
5.3
€42.2
202
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Consolidated Financial Statements
Note 6
Personnel Costs
Personnel costs, excluding share‑based compensation
(€189.8 million in 2023 and €166.7 million in 2022, refer to
Note 7 Share‑based Compensation) and associated payroll
taxes (€56 million in 2023 and €1.3 million in 2022), are
presented in the following table:
(in millions of euros)
Personnel costs
Payroll taxes
TOTAL
Year ended December 31,
2023
2022
€(2,324.8)
(523.3)
€(2,848.1)
€(2,208.2)
(482.0)
€(2,690.2)
Average number of employees was 23,197 and 21,477 in 2023 and 2022 respectively.
Note 7
Share‑based Compensation
The expense related to compensation based on performance shares and stock options, including associated payroll taxes,
breaks down as follows:
(in millions of euros)
Research and development
Marketing and sales
General and administrative
Cost of revenue
TOTAL EXPENSE RELATED TO SHARE‑BASED COMPENSATION
Changes during 2023 and 2022 of unvested numbers of awards were as follows:
Year ended December 31,
2023
2022
€(94.4)
(73.6)
(62.2)
(15.7)
€(245.8)
€(62.6)
(48.0)
(48.8)
(8.6)
€(168.0)
UNVESTED AT JANUARY 1, 2022
Granted
Vested
Forfeited
UNVESTED AT DECEMBER 31, 2022
Granted
Vested
Forfeited
UNVESTED AT DECEMBER 31, 2023
Performance
shares
Number of awards
MEDIDATA
Program Stock options
Total
17,164,032
1,566,930
11,388,975
30,119,937
6,061,503
(5,650,710)
(291,449)
17,283,376
6,161,446
(3,172,032)
(330,493)
19,942,297
‑
(1,168,335)
(108,420)
290,175
1,989,674
(5,282,668)
(763,751)
7,332,230
8,051,177
(12,101,713)
(1,163,620)
24,905,781
‑
(278,920)
(11,255)
‑
2,140,126
(3,477,665)
(160,010)
5,834,681
8,301,572
(6,928,617)
(501,758)
25,776,978
203
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Consolidated Financial Statements
Performance shares
New plans granted in 2023
Plans 2023-A and 2023-B
Pursuant to an authorization granted by the General Meeting
of Shareholders held on May 24, 2023, the Board of Directors
decided, the same day, to grant 3,707,133 performance
shares (Plan 2023‑A) to some employees and executives of
the Group, and 1,500,000 performance shares (Plan 2023‑B)
to Mr. Bernard Charlès, Chairman & Chief Executive Officer,
as part of a plan of progressively associating him with the
Company’s capital implemented several years ago.
At grant date, the weighted average fair value of 2023‑A and
2023‑B performance shares was €29.21. It was estimated
based on the quoted price of Dassault Systèmes SE’s
common stock on the date of grant, assuming an expected
dividend yield of 0.48%, and adjusted to
include the
non‑vesting conditions. The condition related to the non‑
IFRS diluted earnings per share was estimated using a Monte
Carlo model. This model simulates the evolution of the
non‑IFRS diluted earnings per share of the Group excluding
foreign currency effects, assuming an expected volatility of
6.41%. The condition related to the environmental, social and
governance criteria was estimated using the Management
estimates of future achievements.
The shares of these 2023‑A and 2023‑B plans shall be
acquired subject to the end of a period of around three years.
They shall vest, in full or in part, if some performance criteria
are achieved, and the beneficiary is still an employee, an
executive or a corporate officer of the Group at the end of a
service period ending on November 24, 2025.
Plans 2023-M1 and 2023-M2
The Board of Directors also decided on May 24, 2023 to
grant 926,310 performance shares (Plan 2023‑M1) to some
employees and executives of the Group.
At grant date, the weighted average fair value of 2023‑M1
performance shares was €38.24.
The Board of Directors also decided on September 20, 2023
to grant 28,003 performance shares (Plan 2023‑M2) to some
employees and executives of the Group.
At grant date, the weighted average fair value of 2023‑M2
performance shares was €34.18.
The shares of these 2023‑M1 and 2023‑M2 plans shall
be acquired at the end of a period of one year (tranche
1), two years approximately (tranche 2) and three years
approximately (tranche 3) from the grant date. They shall
vest, in full or in part, if the beneficiary is still an employee
or an executive of the Group at the end of these periods and
provided certain performance conditions are achieved.
A summary of the Group’s performance shares plans is as follows:
Plans
2020‑A
2020‑B
2020‑M
2021‑A
2021‑B
2021‑M1
Date of General Meeting of Shareholders
Date of grant by Board of Directors
Total number of shares granted
Restated total number of shares granted (1)
05/22/2018
05/26/2020
804,966
4,024,830
05/22/2018
05/26/2020
300,000
1,500,000
05/22/2018
05/26/2020
56,721
283,605
Acquisition period (in years) (2)
Performance conditions
Performance conditions is reached
at December 31, 2023
Four
See note (3)
See note (9)
Four
See note (3)
See note (9)
Three
See note (4)
Yes
05/26/2021
06/29/2021
741,569
3,707,845
Two or
Four (5)
See note (6)
Voir note (9)
05/26/2021
06/29/2021
300,000
1,500,000
Two or
Four (5)
See note (6)
Voir note (9)
N/A
06/29/2021
175,371
876,855
One, Two,
Three or Four (5)
See note (4)
See note (9)
Plans
2021‑M2
2022‑A1
2022‑B
2022‑M1
2022‑A2
2022‑M2
09/22/2021
16,982
16,982
One, Two,
Three or Four (5)
See note (4)
See note (9)
N/A 05/26/2021
05/19/2022
3,690,907
3,690,907
05/26/2021
05/19/2022
1,500,000
1,500,000
N/A 05/26/2021
09/21/2022
28,523
28,523
Three
See note (3)
N/A
Three
See note (3)
N/A
Three
See note (3)
N/A
05/19/2022
817,809
817,809
One, Two,
or Three (5)
See note (4)
See note (9)
N/A
09/21/2022
24,264
24,264
One, Two,
or Three (5)
See note (4)
See note (9)
Date of General Meeting of Shareholders
Date of grant by Board of Directors
Total number of shares granted
Restated total number of shares granted (1)
Acquisition period (in years) (2)
Performance conditions
Performance conditions is reached
at December 31, 2023
204
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Consolidated Financial Statements
Plans
2023‑A
2023‑B
2023‑M1
2023‑M2
Date of General Meeting of Shareholders
Date of grant by Board of Directors
Total number of shares granted
Restated total number of shares granted (1)
Acquisition period (in years) (2)
Performance conditions
Performance conditions is reached at December 31, 2023
05/24/2023
05/24/2023
3,707,133
3,707,133
05/24/2023
05/24/2023
1,500,000
1,500,000
Three
See note (7)
N/A
Three
See note (7)
N/A
N/A
05/24/2023
926,310
926,310
One, Two,
or Three (5)
See note (8)
See note (9)
N/A
09/20/2023
28,003
28,003
One, Two,
or Three (5)
See note (8)
See note (9)
(1) Presented in order to reflect the five‑for‑one share split effected on July 7, 2021.
(2) For the 2020‑M, 2021‑M1, 2021‑M2, 2022‑M1, 2022‑M2, 2023‑M1 and 2023‑M2 plans, subject to the condition that the beneficiary be an employee or a Director of the
Group at the acquisition date. The presence period is three years for the 2020‑A and 2020‑B plans, one year and a half and three years for the 2021‑A and 2021‑B plans
(respectively for tranches 1 and 2), and two years and a half for the 2022‑A1, 2022‑B, 2022‑A2, 2023‑A and 2023‑B plans.
(3) For the 2020 and 2022 plans (2020‑M, 2022‑M1, 2022‑A2, 2022‑M2 excluded): performance condition based on a targeted growth between the non‑IFRS diluted EPS
excluding foreign currency effects for the respective years 2023 and 2024, and the one achieved in the respective years 2019 and 2021 (non‑vesting condition). Such
growth must be at least equal to a threshold (expressed as a percentage) established by the Board of Directors granting the shares. For the 2022‑A2 plan, performance
condition based on a targeted growth between the non‑IFRS diluted EPS excluding foreign currency effects for the year 2024 and the one achieved in 2021 (vesting
condition).
(4) For the 2020‑M plan, performance condition based on the growth of the non‑IFRS revenue and of the non‑IFRS operating margin of the MEDIDATA activity. This double
condition, is based on targeted growths between the year 2022, excluding foreign currency effects, and the levels of satisfaction of the year 2019 (vesting condition).
For the 2021‑M1 and 2021‑M2 plans, the criteria of the non‑IFRS diluted EPS on the one hand and the non‑IFRS revenue and the non‑IFRS operating margin on the other
hand, are based on targeted growths between the years 2021, 2022, 2023 and 2024 (respectively for each tranche), excluding foreign currency effects, and the levels
of satisfaction of the year 2020 (vesting condition). For the 2022‑M1 and 2022‑M2 plans, the criteria of the non‑IFRS diluted EPS on the one hand and the non‑IFRS
revenue and the non‑IFRS operating margin on the other hand, are based on targeted growths between the years 2022, 2023 and 2024 (respectively for each tranche),
excluding foreign currency effects, and the levels of satisfaction of the year 2021 (vesting condition).
(5) Share acquisition divided into two tranches for 2021‑A and 2021‑B plans, the first having vested on June 29, 2023 and the second vesting on June 30, 2025. Share
acquisition divided into four tranches for 2021‑M1 (respectively vesting on June 29, 2022, June 29, 2023, July 1, 2024 and June 30, 2025) and 2021‑M2 (respectively
vesting on September 22, 2022, September 22, 2023, September 23, 2024 and September 22, 2025). Share acquisition divided into three tranches for 2022‑
M1 (respectively vesting on May 19, 2023, May 20, 2024 and May 19, 2025) and 2022‑M2 (respectively vesting on September 21, 2023, September 23, 2024 and
September 22, 2025). Share acquisition divided into three tranches for 2023‑M1 (respectively vesting on May 24, 2024, May 26, 2025 and May 26, 2026) and 2023‑M2
(respectively vesting on September 20, 2024, September 22, 2025 and September 21, 2026).
(6) For the 2021‑A and 2021‑B plans, the performance condition will be measured based on the growth of the non‑IFRS diluted EPS for the year 2022 (tranche 1) and the
year 2024 (tranche 2), neutralized from currency effects, compared to that of the year 2020 (non‑vesting condition).
(7) For the 2023‑A and 2023‑B plans, performance condition based on two elements: for a weight of 80% on a targeted growth between the non‑IFRS diluted EPS excluding
foreign currency effects for 2025, and the one achieved in 2022 (non‑vesting condition). Such growth must be at least equal to a threshold (expressed as a percentage)
established by the Board of Directors granting the shares; for a weight of 20% on the achievement of three environmental, social and governance criteria by the Group
(mainly non‑market vesting conditions): i) the share of total IFRS revenue deemed eligible within the meaning of EU Taxonomy, ii) the reduction in greenhouse gas
emissions in line with the targets submitted to the Science‑Based Targets initiative (three sub‑criteria) and iii) the diversity (three sub‑criteria).
(8) For 2023‑M1 and 2023‑M2 plans, performance conditions will be measured based on the level of achievement of the following three conditions: for a weight of 40% on
the growth of the non‑IFRS diluted EPS of the Group for the years 2023 (tranche 1), 2024 (tranche 2) and 2025 (tranche 3), neutralized from currency effects, compared
to that of the year 2022 (non‑market vesting condition); for a weight of 40% on the growth neutralized from currency effects of the non‑IFRS revenue and of the non‑
IFRS operating margin of the MEDIDATA brand (double criteria) for the years 2023 (tranche 1), 2024 (tranche 2) and 2025 (tranche 3), compared to that of the year 2022
(non‑market vesting condition); for a weight of 20% on the achievement of three environmental, social and governance criteria by the Group (mainly non‑market vesting
conditions): i) the share of total IFRS revenue deemed eligible within the meaning of EU Taxonomy, ii) the reduction in greenhouse gas emissions in line with the targets
submitted to the Science‑Based Targets initiative (three sub‑criteria) and iii) the diversity (three sub‑criteria).
(9) Performance conditions related to the following plans have been fulfilled: 2021‑A (tranche 1), 2021‑B (tranche 1), 2021‑M1 (tranches 1 and 2), 2021‑M2 (tranches 1 and
2), 2022‑M1 (tranche 1) et 2022‑M2 (tranche 1). Performance conditions will be measured by the March 12, 2024 Board of Directors related to the following plans: 2020‑
A, 2020‑B, 2021‑M1 (tranche 3), 2021 M2 (tranche 3), 2022‑M1 (tranche 2), 2022‑M2 (tranche 2), 2023‑M1 (tranche 1) and 2023‑M2 (tranche 1).
Grant of rights to receive Dassault Systèmes SE
shares in replacement of rights to receive
Medidata shares (“MEDIDATA Program”)
As part of the acquisition of Medidata and subject to its
closing, the Board of Directors approved on June 11, 2019
the grant of rights to receive Dassault Systèmes SE shares
in replacement of the rights to receive Medidata shares that
had been granted to some of its employees and executives.
Stock options
The main features of the Group stock option plans are as
follows:
— options vest over various periods ranging from one to
three years and a half, subject to continued employment;
— options expire ten years from grant date, or after
termination of employment or term of office, whichever
is earlier;
— options have generally been granted at an exercise price
equal to or greater than the grant date market value (or
the market value the day before the grant) of Dassault
Systèmes SE share.
205
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
New plan granted in 2023
Pursuant to an authorization granted by the General
Meeting of Shareholders held on May 24, 2023, the Board of
Directors decided, the same day, to grant 2,140,126 options
to subscribe to Dassault Systèmes SE shares to certain
employees and executives of the Group, at an exercise price
of €39.40 (Plan 2023‑01), equal to the closing value of the
Dassault Systèmes SE share the day before the grant.
Such options are divided in three tranches. They shall vest if
the beneficiary is an employee or an executive of the Group
at the end of a service period of one year (tranche 1), one
year and a half (tranche 2) and two years and a half (tranche
3), and subject to the achievement of certain performance
conditions. The performance conditions will be measured
based on:
— for a weight of 80%: the growth of non‑IFRS diluted
EPS for the years 2023 (tranche 1), 2024 (tranche 2)
and 2025 (tranche 3), neutralized from currency effects,
compared to that of the year 2022 (non‑market vesting
condition for tranche 1 and non‑vesting condition for
tranches 2 and 3);
— for a weight of 20%: the achievement of three
environmental, social and governance criteria by the
Group for the years 2023 (tranche 1), 2024 (tranche
2) and 2025 (tranche 3) (mainly non‑market vesting
conditions for tranche 1 and non‑vesting conditions for
tranches 2 and 3). These three criteria are: the share of
total IFRS revenue deemed eligible within the meaning of
EU Taxonomy, the reduction in greenhouse gas emissions
in line with the targets submitted to the Science‑Based
Targets initiative (three sub‑criteria) and the diversity
(three sub‑criteria).
At grant date, the weighted average fair value of options
granted in 2023 was €8.36. It was estimated on the
date of grant using a Black‑Scholes option pricing model.
Assumptions used are as
follows: weighted‑average
expected life of around six years, expected volatility rate
of 28.27%, expected dividend yield of 0.48% and average
risk‑free interest rate of 3.17%, adjusted to include the
non‑vesting condition (for tranches 2 and 3) using a Monte
Carlo model, and using the Management estimates of
future achievements for the environmental, social and
governance criteria. The expected volatility was determined
using a combination of the historical volatility of Dassault
Systèmes SE’s stock and the implied volatility of the Group’s
exchange‑traded options.
Other information related to the Group stock options
A summary of the Group’s stock option activity is as follows:
2023
2022
Number
of options
Weighted
average
exercise price
Number
of options
Weighted
average
exercise price
OUTSTANDING AS OF JANUARY 1,
25,771,918
€26.35
27,022,622
Granted
Exercised
Forfeited
OUTSTANDING AS OF DECEMBER 31,
Exercisable
2,140,126
(2,876,725)
(271,534)
24,763,785
39,40
24,67
33,11
€27.60
1,989,674
(2,323,055)
(917,323)
25,771,918
18,929,104
€24.83
18,439,688
€25.54
37.17
23.92
31.86
€26.35
€23.43
206
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial statements
Consolidated Financial Statements
The remaining contractual lives and exercise prices of options outstanding as of December 31, 2023 are presented below:
Stock option plan
2015‑01
2016‑01
2017‑01
2018‑01
2019‑01
2020‑01
2020‑M‑01
2020‑M‑02
2020‑M‑03
2021‑01
2022‑01
2023‑01
OUTSTANDING AS OF DECEMBER 31,
Number
of options
Remaining
life (years)
Exercise price
936,248
1,386,624
2,415,019
3,582,889
4,116,174
5,207,823
17,825
1,081,745
130,095
1,910,939
1,845,191
2,133,213
24,763,785
1.68
2.40
3.39
4.39
5.50
6.40
6.19
6.40
6.73
7.50
8.39
9.40
5.76
€12.40
€13.80
€16.40
€22.00
€28.00
€29.09
€26.20
€29.09
€31.57
€41.32
€37.17
€39.40
€27.60
Employee shareholding
In the first semester 2023, the Group offered an employee
shareholding plan “TOGETHER 2023”.
This new plan allows employees in most countries, to
subscribe to a leveraged shareholding plan (equity settled
transactions) with a discounted preferential rate of 15%
compared to the arithmetic average of the price of the
Dassault Systèmes share weighted by the volumes traded
on the Euronext market during the 20 sessions preceding the
date on which the subscription price is set. The subscription
price has thus been set to €31.16 on May 17, 2023.
In countries where a leveraged vehicle is not possible, a share
appreciation right mechanism
is proposed (cash‑settled
transactions), associated with a subscription of shares
without leverage (equity‑settled transactions).
Once subscriptions are made, no period of service is required.
The shares must be kept for a period of five years (three
years in the United States), except for cases of early release
covered by plan rule.
3,051,547 equity‑settled instruments have been granted.
Their unitary weighted average fair value was estimated at
€7.82.
272,828 cash‑settled instruments have been granted. Their
unitary weighted average fair value was estimated at €35.71.
The Group has hedged against changes in the fair value of
the share appreciation rights.
The plan was implemented on June 15, 2023, with the
related capital increase of Dassault Systèmes SE (refer
to Note 22 Shareholders’ Equity). In order to neutralize
the dilutive effect of this plan, the Group repurchased, in
April and May 2023, some treasury shares, almost all of
which have been cancelled in September 2023 (refer to
Note 22 Shareholders’ Equity).
207
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
Note 8
Other Operating Income and Expense, Net
Other operating income and expense, net are comprised of the following:
(in millions of euros)
Year ended December 31,
2023
2022
Impairment of goodwill (1)
Expenses incurred in connection with relocation activities and reorganizations of the Group’s premises (2)
Acquisition and acquisition projects expenses, net
Expenses incurred in connection with voluntary early retirement and end of career multi‑year plan
Restructuring expenses and other
OTHER OPERATING INCOME AND EXPENSE, NET
€(33.0)
(14.5)
(4.4)
(3.4)
(0.8)
€(56.2)
€‑
(11.2)
1.8
(4.6)
(2.0)
€(16.0)
(1)
(2)
Impairment of GEOVIA goodwill (refer to Note 17 Goodwill).
In 2023, primarily composed of (i) amortization of right‑of‑use of an additional building still in vacant leasehold in the Vélizy‑Villacoublay campus, and (ii) impairment
losses of right‑of‑use assets related to vacant leasehold properties following the reorganization of Medidata Solutions, Inc. premises (main components of 2022 expense).
Note 9
Financial Income, Net
Financial income, net for the years ended December 31, 2023 and 2022 are as follows:
(in millions of euros)
Interest income (1)
Interest expense (2)
INTEREST INCOME AND EXPENSE, NET
Foreign exchange (losses), net
Other financial expense, net (3)
OTHER FINANCIAL INCOME AND EXPENSE, NET
FINANCIAL INCOME, NET
Year ended December 31,
2023
2022
€138.4
(40.1)
€98.3
(10.7)
(28.6)
€(39.3)
€59.0
€39.8
(26.0)
€13.8
(9.1)
(2.0)
€(11.1)
€2.8
Interest income is primarily composed of interests on cash and cash equivalents.
(1)
(2) Mainly includes:
(i)
(ii)
interest expense related to lease liabilities for €22.0 million in 2023 and €14.6 million in 2022;
interest expense of €8.4 million in 2023 related to commercial papers (€0.9 million in 2022), €8.2 million in 2023 related to the bonds (€8.3 million in 2022) and
€1.1 million in 2023 related to the borrowings from banking institutions (€1.7 million in 2022) (refer to Note 19 Borrowings).
(3) Mainly includes in 2023, the impairment of loans to BioSerenity SAS for €27.1 million (refer to Note 15 Other Non‑Current Assets).
208
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Note 10
Income Taxes
The components of income before income taxes are as follows:
(in millions of euros)
France
United States
Others
INCOME BEFORE INCOME TAXES
The components of income tax expense are as follows:
(in millions of euros)
France
United States
Others
CURRENT TAXES
France
United States
Others
DEFERRED TAXES
Financial statements
Consolidated Financial Statements
Year ended December 31,
2023
2022
€578.8
586.2
135.9
€1,300.9
€659.4
538.9
107.4
€1,305.6
Year ended December 31,
2023
2022
€(95.3)
(285.2)
(51.4)
(431.9)
(10.2)
202.2
(10.8)
181.3
€(256.8)
(312.5)
(50.7)
(620.1)
3.0
227.1
14.5
244.6
INCOME TAX EXPENSE, NET
€(250.7)
€(375.4)
France
On May 31, 2022, the French Supreme Court (Conseil d’Etat)
rendered two unfavorable decisions concerning the appeal
lodged by the Group. Consequently, the Group recorded a
tax expense representing the loss of the amounts paid to the
French tax administration, for a total of €144.9 million for
the financial year ending December 31, 2022.
As previously disclosed,
the Group made payments
to the French tax administration for a total amount of
€144.9 million from 2014 to 2020, in relation to tax audits
regarding financing of acquisitions, which the Group disputed
with the relevant authorities. As of December 31, 2021,
these payments were recorded in Other non‑current assets,
as the Group was confident in the solid grounds for its claims
and the perspective of a refund.
Differences between the income tax provision and the provision computed using the statutory French income tax rate are as
follows:
(in millions of euros)
Taxes computed at the statutory rate of 25.83% in 2023 and 2022
Foreign tax rate differentials (1)
R&D tax credit and other tax credits (2)
Income taxable at reduced rate (3)
Other tax effects, net (4)
INCOME TAX EXPENSE, NET
EFFECTIVE TAX RATE
Year ended December 31,
2023
2022
€(336.0)
30.6
31.7
97.0
(73.9)
€(250.7)
€(337.2)
29.2
23.3
101.3
(191.9)
€(375.4)
19.3%
28.8%
In 2023 and 2022, mainly includes tax rate differential with the United States tax rate of 21%.
(1)
(2) R&D tax credit and other tax credits derived mainly from research tax credits in France and in the United States.
(3)
In 2023 and 2022, includes the favorable effect of current French (Art. 238) and United States (FDII) legislative provisions granting a lower tax rate on income derived
from ownership of certain intangibles.
In 2023, mainly includes impairment of deferred tax asset and tax credit. In 2022, mainly includes the tax expense representing the loss of the amounts paid from 2014 to
2020 to the French tax administration in relation to tax audits regarding financing acquisitions, as mentioned above, and impact from provisions for tax risks.
(4)
209
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
Deferred tax assets and liabilities are as follows:
(in millions of euros)
Provisions and other expenses
Profit‑sharing and pension accruals
Tax loss and tax credit carryforward assets, net of valuation allowance
Amortization and basis difference
Amortization of acquired intangibles
Other
NET DEFERRED TAX LIABILITY
Deferred tax assets
Deferred tax liabilities
NET DEFERRED TAX LIABILITY
Change in deferred taxes can be summarized as follows:
(in millions of euros)
NET DEFERRED TAX LIABILITY AS OF JANUARY 1,
Changes included in the income statement
Business combinations
Other changes included in shareholders’ equity
Currency translation adjustments
NET DEFERRED TAX LIABILITY AS OF DECEMBER 31,
Year ended December 31,
2023
2022
€217.8
43.5
56.7
391.8
(647.8)
(82.0)
€(19.9)
80.2
(100.1)
€(19.9)
€185.0
46.1
91.9
259.2
(761.8)
(54.5)
€(234.1)
94.4
(328.5)
€(234.1)
Year ended December 31,
2023
2022
€(234.1)
€(372.8)
181.3
0.1
30.5
2.2
€(19.9)
244.6
0.4
(77.6)
(28.6)
€(234.1)
On December 31, 2023, there were unrecognized tax losses and tax credit carried forward of €284.6 million, which are
scheduled to expire at a date later than 2029.
Pillar Two directive
In December 2021,
for Economic
Cooperation and Development (OECD) published the Global
Anti‑Base Erosion Model Rules (“GloBE rules”) also referred
to Pillar Two.
the Organization
In this context, the European Union Council adopted on
December 14, 2022 the directive aimed at ensuring a global
minimum level of taxation (15%) for multinational enterprise
groups and large‑scale domestic groups in the Union. The
Group is carefully monitoring the dates of promulgation of
this directive in the European Union as well as the adoption
of the GloBE rules
jurisdictions outside the Union.
Following the transposition of the European directive into
French law on December 29, 2023, the GloBE rules will be
applicable in France from the 2024 financial year.
in
With regard to GloBE rules, the calculations of effective
tax rates are carried out on a broader scope of entities than
Dassault Systèmes. As a consequence, the potential impacts
of this new regulation are currently being analyzed jointly at
this broader scope.
210
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Consolidated Financial Statements
Note 11
Earnings per Share
Basic net income per share is determined by dividing net
income attributable to equity holders of the Group by the
weighted average number of common shares outstanding
during the period. Diluted net income per share is determined
by dividing net income attributable to equity holders of the
Group by the combination of the weighted average number of
common shares outstanding during the period and the dilutive
effect of mainly stock options and performance shares.
The following table presents the calculation for both basic and diluted net income per share:
(in millions of euros, except shares and per share data)
Net income attributable to equity holders of the Group
Weighted average number of shares outstanding
Dilutive effect of share‑based compensations
Diluted weighted average number of shares outstanding
Basic earnings per share (in euros)
Diluted earnings per share (in euros)
Year ended December 31,
2023
2022
€1,050.9
21,709,725
€931.5
1,315,087,124 1,312,255,968
20,407,040
1,336,796,848 1,332,663,008
€0.71
€0.70
€0.80
€0.79
Note 12
Cash and Cash Equivalents and Short‑term Investments
Cash and cash equivalents are comprised of the following:
(in millions of euros)
Bank accounts
Cash equivalents
CASH AND CASH EQUIVALENTS
At December 31, 2023 and 2022, approximately 51% and
59% of cash and cash equivalents were denominated in U.S.
dollars respectively.
The investment rules are determined and controlled centrally
by the Group’s management. Cash, cash equivalents and
short‑term investments are on deposit with high credit‑quality
financial institutions, principally in Europe. The Group follows
a conservative policy in investing its cash resources, mostly
relying on short‑term maturity investments.
The Group has adopted policies regarding financial ratings
and spread of maturity dates in order to ensure the security
instruments. The Group’s
and
its financial
liquidity of
Year ended December 31,
2023
2022
€134.2
3,434.0
€3,568.3
€98.4
2,670.5
€2,769.0
management oversees closely the quality of its investments
and the credit‑worthiness of its counterparts and believes
that it has a minimal exposure to the risk of bankruptcy of
anyone of them. The Group also closely oversees the liquidity
of its financial assets held with these same counterparts.
In this regard, the Group follows in particular the financial
rating of each of its counterparties and, up to the present
time, all of its counterparties are rated within the Investment
Grade category by the rating agencies. As a result, the
Group believes that it has a very low exposure to credit or
counterparty risk.
211
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
Note 13
Trade Accounts Receivable, Net, Contract
Balances and Other Current Assets
Trade accounts receivable and other current assets are measured at amortized cost.
Trade accounts receivable
(in millions of euros)
Trade accounts receivable
Allowance for trade accounts receivable
TOTAL TRADE ACCOUNTS RECEIVABLE, NET
The maturities of trade accounts receivable, net, were as follows:
(in millions of euros)
Trade accounts receivable past due at closing date:
Less than 3 months past due
3 to 6 months past due
More than 6 months past due
TRADE ACCOUNTS RECEIVABLE PAST DUE
Trade accounts receivable not yet due
TOTAL TRADE ACCOUNTS RECEIVABLE, NET
Year ended December 31,
2023
2022
€1,754.0
(46.1)
€1,707.9
€1,713.2
(51.6)
€1,661.6
Year ended December 31,
2023
2022
€135.9
54.9
36.9
227.8
€150.6
39.4
38.1
228.0
1,480.1
€1,707.9
1,433.6
€1,661.6
The Group is not dependent on any of its principal clients. No single customer or selling partner represented more than 5% of
the Group’s total revenue in 2023 and 2022.
Contract balances
(in millions of euros)
Contract assets
Contract liabilities
Year ended December 31,
2023
2022
€26.8
€(1,479.3)
€20.3
€(1,536.6)
The amount of the revenue recognized during 2023 which
had been deferred in the contract liabilities as at January 1st,
2023 is €1,137.5 million. The amount of the revenue
recognized during 2022 which had been deferred in the
contract liabilities as at January 1st, 2022 is €1,075.2 million.
All contract assets recorded in the balance as of December 31,
2022 have been reclassified to receivables during 2023 since
the right to consideration became unconditional.
Remaining unsatisfied performance obligations
The amount of the remaining unsatisfied performance
obligations, as defined by IFRS 15, is the portion of the
transaction price from contracts with customers allocated to
performance obligations unsatisfied or partially satisfied as
of the closing date.
When applying the practical expedients permitted by
IFRS 15 allowing to exclude contracts with duration
less than one year and time and materials contracts,
the amount of the remaining unsatisfied performance
obligations is €2,439.9 million as of December 31, 2023
and €2,380.8 million as of December 31, 2022. Due to the
profile of contract terms, approximately 52% of this amount
is expected to be recognized as revenue over the next year,
approximately 48% thereafter as of December 31, 2023 and
December 31, 2022.
212
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Other current assets
Other current assets are composed of the following:
(in millions of euros)
Prepaid expenses
Deferred sales compensation, current (1)
Value added tax
Derivatives, current (2)
Other
TOTAL OTHER CURRENT ASSETS
Financial statements
Consolidated Financial Statements
Year ended December 31,
2023
2022
€146.4
44.3
41.5
9.2
38.6
€280.0
€158.4
42.6
43.0
6.9
32.8
€283.7
(1) Asset relating to the incremental costs of obtaining sales contracts with customers. Refer to Note 2 Material accounting policy information.
(2) Refer to Note 20 Derivatives and Currency and Interest Rate Risk Management.
Note 14
Property and Equipment, Net
Property and equipment consist of the following:
(in millions of euros)
Right‑of‑use assets
Computer equipment
Office furniture and equipment
Leasehold improvements
Buildings
TOTAL
Year ended December 31, 2023
Year ended December 31, 2022
Accumulated
depreciation
and Impairment
Net
Gross
Accumulated
depreciation
and Impairment
€(414.1)
(307.9)
(58.8)
(123.4)
(11.0)
€(915.1)
€521.4
185.0
25.1
91.6
59.7
€882.8
€846.3
462.9
89.0
200.2
63.1
€1,661.5
€(357.1)
(302.8)
(58.2)
(115.1)
(8.4)
€(841.7)
Gross
€935.5
492.8
83.9
215.0
70.6
€1,797.9
Net
€489.2
160.1
30.7
85.2
54.7
€819.9
The changes in the carrying amount of property and equipment as of December 31, 2023 are as follows:
(in millions of euros)
NET PROPERTY AND EQUIPMENT
AS OF DECEMBER 31, 2022
Additions (2)
Business combinations
Other changes
Depreciation and impairment
for the period (3)
Exchange differences
NET PROPERTY AND EQUIPMENT
AS OF DECEMBER 31, 2023
Right‑of‑use
assets (1)
Computer
equipment
Office furniture
and equipment
Leasehold
improvements
Buildings
Total
€489.2
€160.1
€30.7
€85.2
€54.7
€819.9
159.7
0.1
(27.3)
(93.2)
(7.0)
521.4
89.4
0.2
(0.1)
(61.9)
(2.8)
185.0
5.1
0.1
(0.3)
(9.7)
(0.8)
25.1
29.2
‑
(0.6)
(20.0)
(2.2)
91.6
10.5
‑
‑
(3.1)
(2.4)
59.7
293.9
0.4
(28.3)
(187.9)
(15.2)
882.8
(1)
(2)
(3)
In 2023, the depreciation charge of right‑of‑use assets is €(83.3) and €(4.3) million for offices and vehicles respectively; as of December 31, 2023, the net book value of
right‑of‑use assets is €509.4 and €6.2 million for offices and vehicles respectively.
In 2023, right‑of‑use assets additions were primarily related to the delivery in the second quarter of 2023 of an additional building in the Vélizy‑Villacoublay campus for
a fixed term of 10 years; and to the delivery in the fourth quarter of 2023 of an office building in Paris for a fixed term of 12 years. For these buildings, right‑of‑use assets
were recognized for €69.7 million and €34.2 million respectively.
Including €(5.4) million of right‑of‑use assets impairments related to vacant leasehold properties.
213
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
The changes in the carrying amount of property and equipment as of December 31, 2022 is as follows:
(in millions of euros)
NET PROPERTY AND EQUIPMENT
AS OF DECEMBER 31, 2021
Additions
Business combinations
Other changes
Depreciation and impairment
for the period (2)
Exchange differences
NET PROPERTY AND EQUIPMENT
AS OF DECEMBER 31, 2022
Right‑of‑use
assets (1)
Computer
equipment
Office furniture
and equipment
Leasehold
improvements
Buildings
Total
€513.5
€120.8
€28.7
€97.3
€56.7
€817.0
82.8
0.2
(8.7)
(105.6)
6.9
96.7
‑
1.0
(59.9)
1.4
6.0
0.1
5.2
(9.6)
0.4
11.4
0.1
(6.9)
(20.4)
3.6
2.4
‑
‑
(2.7)
(1.7)
199.3
0.4
(9.3)
(198.1)
10.6
€489.2
€160.1
€30.7
€85.2
€54.7
€819.9
(1)
(2)
In 2022, the depreciation charge of right‑of‑use assets is €(85.4) and €(4.0) million for offices and vehicles respectively; as of December 31, 2022, the net book value of
right‑of‑use assets is €477.7 and €5.2 million for offices and vehicles respectively.
Including €(14.0) million of right‑of‑use assets impairments related to vacant leasehold properties.
Note 15
Other Non‑Current Assets
Other non‑current assets consist of the following:
(in millions of euros)
Investments in non‑consolidated subsidiaries (1)
Deferred sales compensation, non‑current (2)
Other (3)
OTHER NON‑CURRENT ASSETS
Year ended December 31,
2023
2022
€49.6
51.5
131.3
€232.4
€71.2
59.0
98.7
€228.9
(1)
Include notably the impairment of the BioSerenity shares for an amount of €29.5m following the receivership proceedings of this company in 2023. The counterpart
of this depreciation has been accounted for in Other Comprehensive Income (Refer to the Non‑Current Financial Assets paragraph of Note 2 Material accounting policy
information).
(2) Asset relating to the incremental costs of obtaining sales contracts with customers. Refer to Note 2 Material accounting policy information.
(3)
Including mainly prepaid expenses non‑current, and deposits in 2023. In 2022, also included loans receivable over BioSerenity, that have been fully impaired in 2023
(Refer to Note 9 Financial Income, Net).
Note 16
Intangible Assets, Net
Intangible assets consist of the following:
(in millions of euros)
Software
Customer relationships
Other intangible assets
TOTAL
Year ended December 31, 2023
Year ended December 31, 2022
Accumulated
amortization
and Impairment
Net
Gross
Accumulated
amortization
and Impairment
€(1,976.7)
(1,262.5)
(63.4)
€(3,302.6)
€1,581.5
1,137.8
122.8
€2,842.1
€3,642.8
2,480.4
189.0
€6,312.2
€(1,767.2)
(1,188.4)
(54.2)
€(3,009.8)
Gross
€3,558.2
2,400.3
186.2
€6,144.7
Net
€1,875.6
1,292.0
134.8
€3,302.4
214
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Consolidated Financial Statements
The changes in the carrying amount of intangible assets as of December 31, 2023 are as follows:
(in millions of euros)
Software
Customer
relationships
Other
intangible
assets
Total
intangible
assets
NET INTANGIBLE ASSETS AS OF DECEMBER 31, 2022
€1,875.6
€1,292.0
€134.8
€3,302.4
Business combinations
Other additions
Amortization for the period
Exchange differences and other changes
NET INTANGIBLE ASSETS AS OF DECEMBER 31, 2023
13.8
7.9
(261.5)
(54.4)
€1,581.5
‑
0.7
(114.5)
(40.4)
€1,137.8
0.9
2.5
(11.1)
(4.3)
€122.8
14.8
11.1
(387.1)
(99.1)
€2,842.1
The changes in the carrying amount of intangible assets as of December 31, 2022 are as follows:
(in millions of euros)
Software
Customer
relationships
Other
intangible
assets
Total
intangible
assets
NET INTANGIBLE ASSETS AS OF DECEMBER 31, 2021
€1,992.8
€1,332.1
€137.7
€3,462.5
Business combinations
Other additions
Amortization for the period
Exchange differences and other changes
NET INTANGIBLE ASSETS AS OF DECEMBER 31, 2022
33.0
15.4
(281.9)
116.3
€1,875.6
‑
‑
(119.5)
79.4
€1,292.0
‑
0.3
(11.3)
8.1
€134.8
33.0
15.8
(412.7)
203.8
€3,302.4
Note 17
Goodwill
The changes in the carrying amount of goodwill as of December 31, 2023 and 2022 are as follows:
(in millions of euros)
GOODWILL AS OF JANUARY 1,
Business combinations (1)
Impairment (2)
Exchange differences
GOODWILL AS OF DECEMBER 31,
Year ended December 31,
2023
2022
€4,971.1
€4,712.4
12.7
(33.0)
(145.9)
€4,805.0
29.1
‑
229.6
€4,971.1
In 2023, corresponds mainly to the acquisition of Aifora. In 2022, was mainly related to the acquisition of StyleSage and DIOTASOFT.
(1)
(2) Partial impairment of GEOVIA goodwill. At December 31, 2023, the accumulated impairment on goodwill amounts to €47.9 million, of which €15.0 million booked in 2018.
The Group performed annual impairment tests in the third
quarter of 2023 and 2022.
For the purpose of the impairment test, the Group identified
12 cash‑generating units (“CGUs”) or groups of CGUs,
generally corresponding to the Group’s main software
product brands. Each CGU represented the lowest level
within the Group at which goodwill is monitored for internal
management purposes. Goodwill tested for impairment
purposes was allocated to each CGU, or group of CGUs
that were expected to benefit from the synergies of the
combination.
215
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
Goodwill allocated to each CGU or group of CGUs is as follows:
(in millions of euros)
December 31,
2022 Reallocations (1)
Business
combinations
Impairment
Exchange
differences
December 31,
2023
MEDIDATA
SIMULIA
CATIA (2)
BIOVIA
DELMIA (3)
SOLIDWORKS
ENOVIA (4)
CENTRIC PLM
GEOVIA
Other
TOTAL
€2,414.5
610.7
409.9
427.1
277.9
263.0
247.9
154.5
120.8
44.8
€4,971.1
€‑
‑
‑
‑
227.4
(227.4)
‑
‑
‑
‑
€‑
€‑
‑
0.4
‑
‑
‑
‑
12.1
‑
0.2
€12.7
€‑
‑
‑
‑
‑
‑
‑
‑
(33.0)
‑
€(33.0)
€(83.9)
(14.8)
(6.1)
(14.7)
(12.2)
(1.2)
(6.4)
(5.0)
(1.5)
(0.1)
€(145.9)
€2,330.5
595.9
404.2
412.4
493.1
34.4
241.5
161.7
86.3
44.9
€4,805.0
(1) Reallocation of the goodwill related to the IQMS acquisition, reflecting a change in the operational organization of the Group.
(2)
(3)
(4)
Including 3DS OUTSCALE.
Including QUINTIQ.
Including NETVIBES and EXALEAD.
The recoverable amount of each CGU or group of CGUs has
been determined based on a value in use calculation. This
calculation uses cash flow projections based on financial
budgets covering a five‑to ten‑year period. The ten‑year
period projections are used for activities that have longer
development cycles, representing approximately 63% of
the Group’s total goodwill as of December 31, 2023. Key
assumptions used to determine the value in use of assets are
derived from management objectives for non‑IFRS revenue
growth and for non‑IFRS operating margin (ratio between
non‑IFRS operating income and non‑IFRS revenue) of each
CGU. The pre‑tax discount rates are between 10.8% and
12.0% in 2023 and were between 10.1% and 11.1% in 2022.
In 2023, like in 2022, cash flows beyond that five or ten‑year
period have been extrapolated using a steady growth rate
comprised between 2% and 3%.
At December 31, 2023, based on management estimates,
the Group concluded that the recoverable amount of the
GEOVIA CGU was below its carrying value, leading to a
€33 million partial impairment of the GEOVIA goodwill
(refer to Note 8 Other Operating Income and Expense, Net).
The GEOVIA brand is affected by the impaired perspectives
in the Russian region mining market, that compounds
with the COVID‑19 related volatility of the metals and
minerals commodity market. The Group concluded that the
recoverable amount of the other CGUs or group of CGUs’
exceeded their carrying value.
At December 31, 2022, based on management estimates,
the Group concluded that the recoverable amount of each
CGU or group of CGUs exceeded its carrying value.
The Group performed a sensitivity analysis of its impairment
tests based on each of the following key assumptions:
— increase of 150 basis points in the pre‑tax discount rates; or
— decrease of 100 basis points in the long‑term growth
rates; or
— decrease of 100 basis points in the non‑IFRS operating
margin for 2024 and the following years.
Following this analysis, management believes that any
reasonable possible change in key assumptions described
above would not cause any CGU or group of CGUs’ carrying
amount to significantly exceed its recoverable amount,
except GEOVIA for which the recoverable amount already
equals the carrying amount.
216
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Note 18
Other Liabilities
Other liabilities are comprised of the following:
(in millions of euros)
Value added tax and other taxes
Lease liabilities, current
Other (2)
TOTAL OTHER CURRENT LIABILITIES
Lease liabilities, non‑current
Uncertainty over Income tax treatments
Post‑employment benefits (1)
Other (2)
TOTAL OTHER NON‑CURRENT LIABILITIES
Financial statements
Consolidated Financial Statements
Year ended December 31,
2023
2022
€139.7
66.5
41.4
€247.7
€543.7
200.1
143.5
187.4
€1,074.7
€114.4
83.1
39.7
€237.2
€497.6
202.9
131.9
156.9
€989.3
(1) Refer to Note 21 Post‑employment Benefits.
(2)
Includes the put option liability on Centric Software Inc.’s minority interests and Centric Software Inc.’s cash‑settled share‑based payment liability for €101m and €98m
in 2023 and 2022 respectively.
The maturity analysis of undiscounted lease liabilities payments as of December 31, 2023 is as follows:
(in millions of euros)
Lease liabilities – undiscounted cash flows
Total
717.4
Payments due by period
Less than
1 year
1 – 3 years
3 – 5 years
More than
5 years
89.1
187.1
176.0
265.2
The Group has elected to apply two exemptions provided by IFRS 16 and to recognize as operating rent expense for leases
with a lease term no more than 12 months and for leases with underlying asset of low value. The related rents recognized in
the consolidated income statement are summarized below:
(in millions of euros)
Expenses relating to short‑term leases
Expenses relating to leases of low‑value assets
TOTAL
Year ended December 31,
2023
(6.4)
(0.7)
(7.1)
2022
(4.4)
(0.8)
(5.3)
217
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
Note 19
Borrowings
Borrowings are comprised of the following:
(in millions of euros)
Bond, current*
Term loans, current
Commercial papers
Accrued interest
TOTAL BORROWINGS, CURRENT
Bonds, non‑current*
Term loans, non‑current
TOTAL BORROWINGS, NON‑CURRENT
Year ended December 31,
2023
2022
€699.6
0.2
248.7
1.6
€950.1
2,040.6
‑
€2,040.6
€‑
7.5
249.5
1.7
€258.6
2,737.3
0.1
€2,737.4
Total
€3,869.6
257.8
8.1
(1,143.9)
(0.2)
4.6
€2,996.0
20.3
‑
(27.4)
(0.3)
2.1
€2,990.7
*
As of December 31, 2023 and 2022, the fair value is €2,534.2 and €2,405.6 million respectively (level 1 of fair value hierarchy).
The changes in borrowings as of December 31, 2022 and 2023 are as follows:
(in millions of euros)
BORROWINGS AS OF DECEMBER 31, 2021
Issuance
Business combination
Reimbursement
Exchange differences
Other changes
BORROWINGS AS OF DECEMBER 31, 2022
Issuance
Business combination
Reimbursement
Exchange differences
Other changes
BORROWINGS AS OF DECEMBER 31, 2023
Bonds
Term loans
Commercial
papers*
Accrued
interest
€3,634.5
‑
‑
(900.0)
‑
2.8
€2,737.3
‑
‑
‑
‑
2.8
€2,740.1
€233.2
8.3
8.1
(243.9)
(0.2)
2.0
€7.5
20.3
‑
(27.4)
(0.3)
‑
€0.2
€‑
249.5
‑
‑
‑
‑
€249.5
‑
‑
‑
‑
(0.7)
€248.7
€1.9
‑
‑
‑
‑
(0.3)
€1.7
‑
‑
‑
‑
‑
€1.6
*
The issuance of commercial papers issued with a maximum maturity of three months is presented net of reimbursement.
The analysis of the borrowings as of December 31, 2023 by currency and nature of rate is as follows:
Currency analysis and rate nature
Total
Euros
Other
currencies
€2,740.1
0.2
248.7
1.6
€2,990.7
€2,740.1
0.2
248.7
1.6
€2,990.7
€‑
‑
‑
‑
€‑
Fixed rate
€2,740.1
0.2
248.7
1.6
€2,990.7
(in millions of euros)
Bonds
Term loans
Commercial papers
Accrued interest
TOTAL
218
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Consolidated Financial Statements
The table below provides a breakdown of total borrowings by contractual maturity date as of December 31, 2023:
(in millions of euros)
Bonds
Term loans
Commercial papers
Accrued interest
TOTAL
Bonds
On November 17, 2023, Standard & Poors Global Ratings
reaffirmed their “A” rating with a Stable outlook for Dassault
Systèmes SE and its long term debt.
Payments due by period
Total
€2,740.1
0.2
248.7
1.6
€2,990.7
Less than
1 year
€699.6
0.2
248.7
1.6
€950.1
1‑5 years
5‑10 years
€897.1
‑
‑
‑
€897.1
€1,143.5
‑
‑
‑
€1,143.5
On September 16, 2019, the Group issued four tranches of
fixed rate bonds for a total of €3,650.0 million. This issuance
was part of the financing of the acquisition of Medidata
Solutions, Inc. completed in October 2019. On September 16,
2022, the Group reimbursed the first tranche of bond for
€900.0 million.
The conditions of the remaining tranches of bonds are as follows:
2024
2026
2029
Nominal
amount
(in millions
of euros)
€700.0
900.0
€1,150.0
Carrying
amount
(in millions
of euros)
Maturity
date
€699.6 Sep 16, 2024
897.1 Sep 16, 2026
€1,143.5 Sep 16, 2029
Coupon
0.000%
0.125%
0.375%
The terms and conditions of these bonds are detailed in the transaction note having obtained the AMF visa n° 19‑434 dated
September 12, 2019.
Term loans
In connection with the acquisition of Medidata Solutions, Inc.,
the Group also subscribed in October 2019 a term loan of
€500.0 million bearing interest at Euribor 3 months +0.50%
per annum and a term loan of $530.0 million bearing interest
at Libor USD 3 months +0.60% per annum. Both loans had a
5‑year term.
The Group voluntarily redeemed early the remaining part
of these term loans for €100.0 million on January 28, 2022
and $150.0 million on February 28, 2022 (€200.0 million and
$150.0 million redeemed on July 2, 2021; €200.0 million and
$230.0 million redeemed on October 28, 2020).
Commercial papers
In July 2022, the Group launched a program of commercial
papers (Negotiable EUropean Commercial Paper – NEU CP)
with a maximum outstanding amount, authorized by the
Board, of €750.0 million. During 2023, the Group issued
€1,275.0 million with a maximum maturity of three months
and reimbursed €1,275.0 million under this program. As of
December 31, 2023 and 2022, the outstanding amount of
commercial papers amounted to €248.7 and €249.5 million
respectively.
Line of credit
The Group received a financing commitment in the form
of a revolving line of credit of €750 million for a period of
5 years from October 28, 2019. In May 2020 and May 2021,
the Group exercised its options to extend its term for one
year respectively, bringing the new termination date to
October 2026. As of December 31, 2023, the line of credit
was not drawn down.
The Group’s financing contracts do not have commitments
such as “covenant ratios” linked to the change in the Group’s
rating. A lower credit rating would result in an increase
(capped) in the margins applicable to the line of credit;
symmetrically, a higher rating would lead to a decrease in
the applicable margins (with a floor).
219
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Consolidated Financial Statements
Note 20
Derivatives and Currency and Interest Rate Risk Management
instruments are
The fair market values of derivative
determined by financial institutions using option pricing
models.
All financial instruments were subscribed as part of the
Group’s overall hedging strategy and most foreign currency
hedging instruments have a maturity of less than 2 years.
Management believes that counter‑party risk on financial
instruments is minimal since the Group deals with major
banks and financial institutions.
A description of market risks to which the Group is exposed
to is provided in paragraph 1.9.2 “Financial and Market
Risks” of the Universal registration document.
In 2023, revenue denominated in Japanese yens represented
6.7% of the Group’s total revenue, compared to 7.6% in
2022. Operating expenses denominated in Japanese yens
represented 2.5% of the Group’s total operating expenses in
2023 and 2.7% in 2022. The Group’s net operating exposure
to Japanese yen amounted to €286.0 million in 2023, or
4.8% of the Group’s total revenue, and this exposure was
partly hedged through market instruments at a level of
€249.1 million, as further described below. The average
value of the Japanese yen against the euro decreased by
approximately 9% in 2023, and decreased by approximately
6% in 2022, resulting in a negative impact on the Group’s
revenue and operating income in 2023 and in 2022.
Foreign currency risk
The Group operates internationally and transacts in various
foreign currencies, primarily U.S. dollar and Japanese yen.
In 2023, revenue denominated in U.S. dollars represented
49.3% of the Group’s total revenue (50.5% in 2022).
Operating expenses denominated in U.S. dollars represented
48.6% of the Group’s total operating expenses in 2023,
compared with 50.2% in 2022. The Group’s net operating
exposure to U.S. dollar amounted to €644.1 million in 2023,
or 10.8% of the Group’s total revenue. The average value of
the U.S. dollar decreased by approximately 3% against the
euro in 2023 and increased by approximately 12% in 2022,
resulting in a negative impact on the Group’s revenue and
operating income in 2023 and a positive impact in 2022.
(in millions of euros)
Revenue
Operating expenses
NET POSITION
Hedge
NET POSITION AFTER HEDGE
With the weights of U.S. dollars and Japanese yens in 2023
as described above, the Group estimates that the sensitivity
on the operating income to a variation of +10% and ‑10% in
the exchange rate of the euro against the U.S. dollar would
have had an impact of €(58.6) and €71.6 million respectively.
In addition, the Group estimates that the sensitivity on the
operating income to a variation of +10% and ‑10% in the
exchange rate of euro against the Japanese yen would have
had an impact of €(26.0) and €31.8 million respectively.
The table below sets forth, for the year ended December 31,
2023, the values in euros of the Group’s revenue, operating
expenses and net position, before and after hedging,
denominated
in U.S. dollars, Japanese yens and other
currencies (principally the euro):
Year ended December 31, 2023
Japanese
yen
Other
foreign
currencies
Total
foreign
currencies
U.S. dollar
Euro
Total
€2,932.0
(2,287.9)
€644.1
€401.6 €1,064.3 €4,398.0 €1,553.4 €5,951.4
(685.6)
(115.6)
(4,709.5)
(3,089.2)
€(66.8) €1,241.9
€378.6 €1,308.8
€286.0
(1,620.3)
(117.1)
€761.2
249.1
€36.9
(9.7)
122.4
€388.4 €1,186.4
The Group usually hedges exchange rate risk related to its
revenues and expenses coming from usual and predictable
economic activity arising in the normal course of operations.
The Group may also cover occasional exchange rate risk
arising from specific transactions, such as acquisitions paid
for in foreign currencies. Hedging activities are generally
carried out by Dassault Systèmes SE for its own account and
on behalf of its subsidiaries.
To manage currency exposure, the Group generally uses
foreign exchange forward contracts. Except those indicated
in the table below, the derivative instruments held by
the Group are designated as cash flow hedges, with high
correlation with the underlying exposure and highly effective
in offsetting underlying price movements.
The effectiveness of forward contracts and currency options
is measured using forward rates and the forward value of
the underlying hedged transaction. During 2023 and 2022,
the ineffective portion of gains or losses from hedging
instruments was nil as per the effectiveness test.
220
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial statements
Consolidated Financial Statements
At December 31, 2023 and 2022, the fair value of instruments used to manage the currency exposure was as follows:
(in millions of euros)
Forward exchange contract JPY/USD – sale (1)
Forward exchange contract JPY/EUR – sale (1)
Forward exchange contract EUR/INR – sale (1)
Forward exchange contract USD/INR – sale (1)
Forward exchange contract GBP/EUR – sale (1)
Forward exchange contract USD/EUR – sale (1)
Forward exchange contract CNH/EUR – sale (1)
Forward exchange contract CNH/USD – sale (1)
Other instruments (2)
Year ended December 31,
2023
Nominal
amount
Fair value
2022
Nominal
amount
Fair value
€155.9
161.6
71.5
51.4
74.6
‑
63.1
38.2
39.0
€3.4
1.6
(1.2)
(0.1)
(0.4)
‑
(0.7)
0.3
0.1
€145.8
120.6
70.7
68.7
45.4
41.2
31.6
‑
7.3
€(4.1)
3.6
(2.1)
(2.0)
0.8
‑
(0.5)
‑
‑
Instruments entered into by the Company to hedge the foreign currency exchange risk of royalty flows, and mainly qualified as hedging instruments.
(1)
(2) Mainly derivatives not documented as hedging instruments. Changes in the derivatives’ fair value were recorded in other financial income and expense, net in the
consolidated income statement.
Interest rate risk
The Group believes that its business and operating income
have not been significantly affected by changes in interest
rates in 2023. Exposure to interest rate risk, in a context of
rising rates, is mainly reflected in an improvement in interest
income on cash, cash equivalents, short‑term investments
and consequently the financial income, as the Group’s
current financing structure relies mainly on fixed rates
borrowings.
As of December 31, 2023, cash and cash equivalents and
short‑term investments totaled €3,568.3 million, including
€1,955.7 million sensitive to fluctuations in interest rates.
With all other variables held constant, an increase in interest
rates of 100 basis points would have had a positive impact in
2023 of €19.6 million on financial income and a decrease in
interest rates of 100 basis points would have had a negative
impact of €19.6 million.
Note 21
Post‑employment Benefits
Contributions made to defined contribution plans amount to
€56.0 and €51.3 million in 2023 and 2022 respectively.
Retirement indemnity benefits vest and are settled as a lump
sum paid to the employee upon the employee’s retirement.
The Group provides defined benefit retirement indemnities
to the employees of its French operations. The Group also
has certain defined benefit plans in other countries, mainly in
Germany and in Japan.
In France, defined employee benefits
include certain
gratifications paid upon anniversary of employment and
retirement indemnities that are based upon an individual’s
years of credited service and annualized salary at retirement.
The Group has implemented for the main French companies
a job and career paths agreement for a period of three
years, effective in February 2020. This plan allows eligible
employees to retire fully or partially in advance while receiving
a replacement income in the form of an allowance and
maintain a social protection system. This plan is accounted
for as a post‑employment benefit which estimated costs are
based on an assumption of expected proportion of employees
to enter the plan and are accrued taking into account the
employees estimated residual service period.
221
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
The projected benefit obligation was determined using the prospective method, based on the following assumptions:
Assumptions
Assumptions used to determine the benefit obligation are as follows:
Discount rate
Average rate of compensation increase
1,30% – 3,20%
1,70% – 4,05%
1,50% – 3,10% 2,50% – 5,00%
2,10% – 3,75%*
1,50% – 3,50%
1,40% – 5,30%
2,50% – 5,00%
Year ended December 31, 2023
Year ended December 31, 2022
Europe
Asia
Europe
Asia
*
Except for the job and career paths agreement implemented for French companies.
Components of net periodic benefit cost
The components of net periodic benefit cost were as follows:
(in millions of euros)
Service cost
Interest cost on benefit obligations
Other
NET PERIODIC BENEFIT COST
Obligations and funded status
Changes in benefit obligations and plan assets are as follows:
(in millions of euros)
Benefit obligations at beginning of year
Service cost
Interest cost on benefit obligations
Remeasurement (1)
Benefits paid
Exchange rate differences and other changes (2)
BENEFIT OBLIGATIONS AT END OF YEAR
Fair value of plan assets at beginning of year
Employer contribution and benefits paid
Remeasurement
Exchange rate differences and other changes (2)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR
NET DEFINED BENEFIT LIABILITY
Year ended December 31,
2023
2022
€(13.1)
(6.0)
1.7
€(17.4)
€(12.5)
(2.2)
0.9
€(13.8)
Year ended December 31,
2023
2022
€181.7
13.1
6.0
9.3
(10.8)
(7.6)
€191.7
48.9
(5.8)
(0.4)
3.0
€45.7
€222.2
12.5
2.2
(41.2)
(21.1)
7.0
€181.7
44.8
(7.0)
(2.2)
13.3
€48.9
€(146.0)
€(132.8)
(1) Remeasurement gains and losses mainly arise from changes in financial assumptions. A decrease of 150 basis points in the discount rates would increase the obligation by
(2)
€36.1 million.
In 2023 and 2022, includes the reclassification in Accrued compensation and other personnel costs for €6.5 million and €3.4 million respectively as part of the job and
career paths agreement implemented for French companies.
222
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial statements
Consolidated Financial Statements
Year ended December 31,
2023
84%
16%
100%
2022
84%
16%
100%
Year ended December 31,
2023
85%
8%
7%
100%
2022
88%
6%
7%
100%
The benefit obligation by geographical location is as follows:
Europe
Asia
TOTAL BENEFIT OBLIGATIONS
The fair value of plan assets is fully allocated in Europe.
Plan assets
The weighted average asset allocations are as follows:
Debt instruments
Equity instruments
Other
TOTAL
Average duration
The average duration of the main entities in each country is as follows:
(in years)
2023
2022
Cash flows
France
South Korea
Japan
Germany
Switzerland
13.4
8.3
5.8
6.1
9.8
6.8
12.4
15.4
16.2
14.5
The Group does not expect to make any additional contributions to the hedge funds related to its pension plans in 2024.
The planned payments to the beneficiaries for future periods are presented in the following table:
(in millions of euros)
2024
2025
2026
2027
2028
2029‑2033
Total
€9.4
9.7
10.5
10.6
10.8
78.2
223
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Consolidated Financial Statements
Note 22
Shareholders’ Equity
Shareholders’ equity activity
As of December 31, 2023, Dassault Systèmes SE had
1,337,916,433 common shares issued with a nominal value
of €0.10 per share.
As part of the employee shareholding plan “TOGETHER
2023”, Dassault Systèmes SE carried out a capital increase of
4.7 million shares on June 15, 2023 for a total of 146.1 million
euros, including share premium. In order to neutralize the
dilutive effect for shareholders, the Board of Directors
decided on September 20, 2023 to reduce the capital by the
same number of shares by treasury shares cancellation.
Changes in shares outstanding are as follows:
(in number of shares)
SHARES ISSUED AS OF JANUARY 1,
Capital increase related to TOGETHER
Capital decrease
Exercise of stock options
SHARES ISSUED AS OF DECEMBER 31,
Treasury stock as of December 31,
SHARES OUTSTANDING AS OF DECEMBER 31,
The primary objective of the Company’s capital management
is to ensure that it maintains a strong credit rating and
healthy capital ratios in order to support its capital market
access and for the purpose of increasing the profitability of
shareholders’ equity and earnings per share. The Company
manages its capital structure and adjusts it in light of
changes in economic conditions. To maintain or adjust the
capital structure, the Company may adjust the dividend
payment to shareholders, return capital to shareholders or
issue new shares. No changes were made in the objectives,
policies or processes during 2023 and 2022.
Dividend rights
Dassault Systèmes SE is required to maintain a legal reserve
equal to 10% of the aggregate nominal value of its issued
share capital. The legal reserve balance was respectively
€13.4 million and €13.3 million as of December 31, 2023
and 2022, and represents a component of retained earnings
in the consolidated balance sheet. The
legal reserve
liquidation of Dassault
is distributable only upon the
Systèmes SE.
Distributable profit, consisting of net income of the year
increased by retained earnings from prior years and after
deduction for legal reserve when required, is available for
distribution to shareholders of the Group as dividends.
Allocation of this profit is subject to approval by the General
Meeting of Shareholders following recommendations by the
Board of Directors.
224
As part of the employee shareholding plan “TOGETHER”
launched in 2021, Dassault Systèmes SE carried out a capital
increase of 4.3 million shares on January 20, 2022 for a total
of 198.6 million euros, including share premium. In order to
neutralize the dilutive effect for shareholders, the Board of
Directors decided on March 15, 2022 to reduce the capital by
the same number of shares by treasury shares cancellation.
Year ended December 31,
2023
2022
1,335,039,708 1,332,716,653
4,688,515
(4,688,515)
2,876,725
4,305,050
(4,305,050)
2,323,055
1,337,916,433 1,335,039,708
(23,135,954)
(21,116,225)
1,314,780,479 1,313,923,483
The May 2023 and May 2022 Shareholders’ Meetings
have decided to distribute dividends, fully in cash, for
€276.2 million and €223.5 million in 2023 and in 2022,
respectively.
Dividends per share were €0.21 and €0.17 for 2022 and
2021, respectively.
No dividend was paid to non‑controlling interest in 2023 or
2022.
Stock repurchase programs
The General Meeting of Shareholders of May 24, 2023
authorized the Board of Directors to implement a share
repurchase program limited to 25,000,000 of Dassault
Systèmes’ shares. Under this authorization, the Company
may not buy shares above a maximum annual aggregate
amount of €1 billion.
The Group has been engaged in a liquidity agreement with
broker Oddo BHF SCA since 2015. 3,096,015 shares were
acquired during the year 2023, at an average price of €38.77,
i.e. a total amount of €120.0 million, and 3,407,314 were
sold, at an average price of €39.16, i.e. a total amount of
€133.4 million.
share
repurchase
Furthermore, the Group also signed with Société Générale
two
from
January 2 to February 2, 2023, and from March 13 to
April 17, 2023. No shares have been repurchased under these
agreements.
agreements,
covering
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT (refer
Finally, as part of the employee shareholding plan
“TOGETHER 2023”
to Note 7 Share‑based
Compensation), the Group signed with Crédit Agricole
Corporate and
repurchase
agreement covering a period from April 18, 2023 to May 16,
2023. 4,783,393 shares were acquired at an average price of
Investment Bank a share
Financial statements
Consolidated Financial Statements
€36.64 i.e. a total amount of €175.1 million. These shares
were delivered and paid on June 15, 2023, the day of capital
increase related to the TOGETHER 2023 plan (see paragraph
Shareholders’ equity activity above), and almost all of them
were cancelled on September 20, 2023.
Components of other comprehensive income
(in millions of euros)
HEDGING RESERVES:
Gains arising during the year
Less: Gains reclassified to the income statement
Note 23
Consolidated Statements of Cash Flows
Adjustments for non‑cash items consist of the following:
(in millions of euros)
Depreciation and impairment of property and equipment
Amortization and impairment of intangible assets
Non‑cash share‑based compensation expense
Deferred taxes
Other*
ADJUSTMENTS FOR NON‑CASH ITEMS
Year ended December 31,
2023
2022
€30.7
23.7
€7.0
€10.0
19.6
€(9.6)
Year ended December 31,
Note
2023
2022
14
16
6, 7
10
€187.9
387.1
184.2
(181.3)
66.3
€644.2
€198.1
412.7
166.7
(244.6)
144.6
€677.6
*
In 2023 mainly includes impairment of GEOVIA goodwill (refer to Note 17 Goodwill) and impairment of loans to BioSerenity SAS (refer to Note 15 Other Non‑Current
Assets); in 2022 mainly includes the tax expense representing the loss of the amounts paid to the French tax administration (refer to Note 10 Income taxes) and provisions
for tax risks impact (refer to Note 18 Other liabilities).
Changes in operating assets and liabilities consist of the following:
(in millions of euros)
(Increase) in trade accounts receivable and contract assets
Increase in accounts payable
Increase (decrease) in accrued compensation
(Decrease) increase in income tax payable
(Decrease) increase in contract liabilities
Changes in other assets and liabilities
CHANGES IN OPERATING ASSETS AND LIABILITIES
Other information:
Year ended December 31,
2023
2022
€(97.7)
15.0
47.4
(104.9)
(5.0)
16.0
€(129.2)
€(263.8)
18.3
(17.9)
44.8
189.0
(53.0)
€(82.6)
Payment for acquisition of businesses, net of cash acquired is mainly related to Aifora GmbH in 2023, and StyleSage, Inc. and
DIOTASOFT in 2022.
225
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Consolidated Financial Statements
Note 24
Commitments and Contingencies
Litigation and other proceedings
Bank guarantees
The Group is involved in litigation and other proceedings,
such as civil, commercial and tax proceedings, incidental
to normal operations. It
is not possible to determine
with certainty the outcome of the dispute and notably
the resulting expense for the Group, if any. However, in
the opinion of management, after consultation with its
lawyers and advisers, the resolution of such litigation
and proceedings should not have a material effect on the
consolidated financial statements of the Group.
Note 25
Related‑Party Transactions
The Group has a central cash management operated through
a banking institution. In this context, the Group offered a
guarantee to the bank in an amount of $500 million. All
commitments of the bank are guaranteed by its parent
company.
Compensation of key management personnel
The table below summarizes compensation granted to the members of the Group’s Executive team and to the Chairman of the
Board of Directors in 2023 and 2022:
(in millions of euros)
Short‑term benefits (1)
Share‑based compensation (2)
COMPENSATION OF KEY MANAGEMENT PERSONNEL
Year ended December 31,
2023
€11.3
60.5
€71.8
2022
€11.9
65.1
€77.0
Including gross salaries, bonus, incentives, profit‑sharing, directors’ fees and fringe benefits paid.
(1)
(2) Expense recorded in the income statement for share‑based compensation (refer to Note 7 Share‑based Compensation).
In certain circumstances, the Group Chief Executive Officer
is entitled to an indemnity payment upon the termination of
his functions as Chief Executive Officer. The amount of the
indemnity due would be equivalent to a maximum of two
years of compensation as Chief Executive Officer and would
depend on satisfying the performance conditions established
for calculating his variable compensation.
Other transactions with related parties
Dassault Systèmes licenses its products for internal use
to Dassault Aviation SA, a sister company to Dassault
Systèmes SE. Dassault Aviation SA, its subsidiaries and
associates are granted
licenses on Dassault Systèmes’
products under commercial terms consistent with those
granted to other customers of similar size. These licenses
generated €47.3 million and €32.7 million of software
revenue for the years ended December 31, 2023 and 2022,
respectively.
Such activity generated service revenues of €10.3 million
and €8.8 million in the years ended December 31, 2023
and 2022, respectively. The balances of trade accounts
receivable with Dassault Aviation SA and its subsidiaries
were €20.4 million, and €16.0 million at December 31, 2023
and 2022, respectively.
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Consolidated Financial Statements
Note 26
Principal Statutory Auditors’ Fees and Services
The following table presents the amount of fees paid to each of the Group’s principal Statutory Auditors in 2023 and 2022:
(in millions of euros, excluding VAT)
2023
2022
2023
2022
2023
2022
2023
2022
PricewaterhouseCoopers Audit
KPMG
Amount%
%
Amount%
%
Certification of accounts
Audit opinion, review of statutory
and consolidated financial statements (1):
– issuer
– other consolidated subsidiaries
SUBTOTAL
Other services
Other audit‑related services (2):
– issuer
– other consolidated subsidiaries
Other services (legal, tax, social) (3):
– issuer
– other consolidated subsidiaries
SUBTOTAL
€0.6
1.7
2.3
€0.4
‑
‑
1.2
1.6
€0.5
1.7
2.3
‑
‑
0.1
0.9
1.0
14%
45%
59%
9%
‑
‑
31%
41%
16%
53%
69%
‑
‑
4%
26%
31%
€0.6
0.9
1.5
‑
0.1
‑
0.2
0.4
€0.5
0.8
1.3
‑
‑
‑
0.6
0.6
32%
48%
80%
‑
6%
3%
12%
20%
26%
44%
70%
‑
‑
‑
30%
30%
TOTAL
€3.9
€3.3
100%
100%
€1.9
€1.9
100%
100%
(1) Audit opinion, review of statutory and consolidated financial statements for the years ended December 31, 2023 and 2022 include the Group audit, statutory audits,
consents, attest services of Dassault Systèmes SE’s and its subsidiaries’ financial statements, and services provided in connection with documents filed with the AMF.
(2) Audit‑related fees generally consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Group’s
financial statements including due diligence services of the independent third‑party organization related to social, societal and environmental information, taxonomy,
acquisitions, consultations concerning financial accounting and reporting standards, and attestation services not required by statute or regulation.
(3) Fees billed by members of the Statutory Auditors’ respective networks to consolidated subsidiaries are mainly related to the review of internal control (ISAE 34 report)
and to local and international tax compliance services, including the review of tax returns and tax services regarding statutory, regulatory or administrative developments
and expatriate tax assistance and compliance.
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Financial statements
Consolidated Financial Statements
Note 27
Principal Dassault Systèmes Companies
Dassault Systèmes SE’s principal subsidiaries included in the scope of consolidation as of December 31, 2023 are as follows:
Country
Consolidated companies
% of Interest
Dassault Data Services SAS
Outscale SAS
Dassault Systèmes Deutschland GmbH
Dassault Systèmes 3DExcite GmbH
Dassault Systèmes B.V.
Dassault Systèmes Italia Srl
Dassault Systèmes AB
Dassault Systèmes (Suisse) SA
Dassault Systemes España S.L.U
France
France
Germany
Germany
Netherlands
Italy
Sweden
Switzerland
Spain
United Kingdom Dassault Systèmes UK Limited
United Kingdom MDSOL Europe Limited
United Kingdom Medidata Solutions Intl Ltd
Canada
United States
United States
United States
United States
United States
United States
United States
United States
United States
United States
China
China
India
India
South Korea
Japan
Japan
Singapore
Australia
Malaysia
Dassault Systèmes Canada Inc.
Centric Software, Inc.
Dassault Systèmes Americas Corp.
Dassault Systèmes Corp.
Dassault Systèmes Simulia Corp.
Dassault Systèmes SolidWorks Corporation
Medidata Solutions, Inc.
No Magic, Inc.
Spatial Corp.
DS Government Solutions Corp.
Dassault Systemes 3DExcite Corp.
Dassault Systèmes (Shanghai) Information Technology Co., Ltd.
Medidata Information Technology (Shanghai) Co., Ltd.
Dassault Systèmes Solutions Lab Private Limited
Dassault Systèmes India Private Limited
Dassault Systèmes Korea Corp.
Dassault Systèmes K.K.
SolidWorks Japan K.K.
Dassault Systèmes Singapore Pte. Ltd.
Dassault Systèmes Australia Pty Ltd
Dassault Systèmes Innovation Technologies Malaysia Sdn.Bhd
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
93.5%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
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Consolidated Financial Statements
4.1.2
Statutory Auditors’ Report
on the Consolidated Financial Statements
This is a free translation into English of the Statutory Auditors’ report issued in French and is provided solely for the
convenience of English speaking readers. This report includes information specifically required by European regulations or
French law, such as information about the appointment of Statutory Auditors. This report should be read in conjunction with,
and construed in accordance with, French law and professional auditing standards applicable in France.
To the Shareholders,
Opinion
In compliance with the engagement entrusted to us by your Shareholders’ Meetings, we have audited the accompanying
consolidated financial statements of Dassault Systèmes S.E. for the year ended December 31, 2023.
In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial
position of the Group at December 31, 2023 and of the results of its operations for the year then ended in accordance with
International Financial Reporting Standards as adopted by the European Union.
The audit opinion expressed above is consistent with our report to the Audit Committee.
Basis for opinion
Audit framework
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under those standards are further described in the “Responsibilities of the Statutory Auditors relating to
the audit of the consolidated financial statements” section of our report.
Independence
We conducted our audit engagement in compliance with independence rules requirements of the French Commercial Code
(code de commerce) and the French Code of Ethics (code de déontologie) for Statutory Auditors for the period from January 1,
2023 to the date of our report, and, specifically, we did not provide any prohibited non‑audit services referred to in Article 5
(1) of Regulation (EU) No. 537/2014 or in the French Code of ethics (code de déontologie) for Statutory auditors.
Justification of assessments – Key audit matters
In accordance with the requirements of Articles L. 821‑53 and R. 821‑180 of the French Commercial Code relating to the
justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in
our professional judgment, were of most significance in our audit of the consolidated financial statements, as well as how we
addressed those risks.
These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on specific items of the consolidated financial statements.
Recognition of revenue from contractual arrangements with multiple performance obligations
Description of risk
The Group’s revenue is derived from multiple sources, chief among them licenses, subscriptions, support and services, and
is recognized in accordance with the methods described in the section entitled “Revenue recognition” of Note 2 “Material
accounting policy information” to the consolidated financial statements.
Where contractual arrangements include multiple goods or services sold as a single package, determining the separate
performance obligations as well as the allocation of the transaction price and how revenue should be allocated between the
various performance obligations can be difficult and can require a significant degree of judgment from management:
— the revenue for each element of these contractual arrangements including multiple performance obligations is allocated
to each distinct performance obligation based on their stand‑alone selling price. Allocating revenue between the various
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442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Consolidated Financial Statements
performance obligations of a contract requires analyses by management and, potentially, adjustments, both of which can
be complex;
— in addition, when a software license sale is combined with a service deemed essential to the functionality of the software,
the two performance obligations (software and service) are not distinct. Therefore, the license revenue is recognized as
and when the service obligation is recognized. Determining whether or not a service is essential to the functionality of a
product requires significant judgment from management, as does analyzing the potential future profits to be gained from
the corresponding long‑term contract;
— moreover, recognizing revenue from these arrangements typically requires an in‑depth analysis of contractual terms with a
view to ascertaining the full scope and nature of the goods or services the Company has committed to providing to clients.
For the above reasons, we deemed the recognition of revenue from contractual arrangements with multiple performance
obligations to be a key audit matter.
How our audit addressed this risk
As part of our audit, we gained an understanding of internal control systems relating to the recognition of revenue that were
implemented by the Group and tested the design and implementation of controls relating to these systems that we considered
to be the most relevant.
Our approach also took into account the information systems used in recognizing revenue, by testing, with the assistance of
our IT specialists, the effectiveness of the automatic controls for systems impacting revenue recognition.
In addition, we reviewed the contractual arrangements with multiple performance obligations that were considered significant
and other randomly selected contracts to assess whether management’s judgments regarding the determination of the various
performance obligations, the allocation of the transaction price to the individual performance obligations, and the method of
revenue recognition for each distinct performance obligation were consistent with the accounting policies applied by the Group.
Our work consisted primarily in reviewing the contractual terms and conditions, analyzing the essentiality criteria for services
associated with software sales, re‑calculating the stand‑alone selling price of each element tested, and verifying the consistency
of revenue recognition with the Group’s accounting policies and IFRS as adopted by the European Union.
We also analyzed the consistency of all significant manual accounting entries affecting revenue from these contracts with the
Group’s accounting policies.
Lastly, we analyzed the appropriateness of the related disclosures provided in Note 2 “Material accounting policy information”
and Note 4 “Software Revenue” to the consolidated financial statements.
Annual impairment testing of goodwill and non‑current intangible assets
Description of risk
At December 31, 2023, the Group’s non‑current assets included goodwill for €4,805,0 million, software for €1,581.5 million
and customer relationships for €1,137.8 million. These amounts mainly derive from business combinations.
As described in the section entitled “Business combinations and goodwill” of Note 2 “Material accounting policy information”
and Note 17 “Goodwill” to the consolidated financial statements, the Group performs an impairment test whenever an
indication of impairment is identified and at least once a year. These tests are performed at the level of each cash‑generating
unit (CGU) or group of CGUs, generally corresponding to a software product brand. The recoverable amount is determined on
the basis of value in use using cash flow forecasts based on financial budgets over a period of five to ten years.
Given (i) the materiality of the amounts in question in the Group’s financial statements and (ii) the measurement methods
used in acquisitions and in annual impairment tests, which rely in particular on projected future cash flows, we deemed
the measurement of non‑current assets to be a key audit matter. In order to implement the aforementioned measurement
methods, management must rely on assumptions and make estimates. Regarding the specific matter of recently acquired
companies, the degree of judgment required by management in projecting future cash flows is even more significant as
projections cannot necessarily be compared with historical data from these companies.
How our audit addressed this risk
Our procedures consisted in taking note of the measurement methods applied by the Group as well as assessing the
reasonableness of the main assumptions and estimates used, particularly in terms of future cash flows, long‑term growth
rates and discount rates.
In addition, with the assistance of our valuation experts, we carried out our own sensitivity analyses to supplement our
assessment of the key assumptions and inputs used.
Lastly, we analyzed the appropriateness of the disclosures presented in Note 2 “Material accounting policy information”,
Note 16 “Intangible Assets, Net” and Note 17 “Goodwill” to the consolidated financial statements.
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Consolidated Financial Statements
Specific verifications
We have also performed, in accordance with professional standards applicable in France, the specific verifications required by
laws and regulations of the Group’s information presented in the Board of Directors’ management report.
We have no matters to report as to their fair presentation and their consistency with the consolidated financial statements.
We attest that the consolidated non‑financial information statement required by Article L. 225‑102‑1 of the French
Commercial Code is included in the Group’s management report, it being specified that, in accordance with Article L. 823‑10 of
this Code, we have verified neither the fair presentation nor the consistency with the consolidated financial statements of the
information contained therein. This information should be reported on by an independent third party
Report on Other Legal and Regulatory Requirements
Format of presentation of the consolidated financial statements to be included in the annual financial report
We have also verified, in accordance with the professional standard applicable in France relating to the procedures performed
by the Statutory Auditor relating to the annual and consolidated financial statements presented in the European single
electronic format, that the presentation of the consolidated financial statements to be included in the annual financial report
mentioned in Article L. 451‑1‑2.I of the French Monetary and Financial Code (code monétaire et financier) and prepared under
the Chief Executive Officer’s responsibility, complies with the single electronic format, defined in the European Delegated
Regulation No. 2019/815 of December 17, 2018. As it relates to consolidated financial statements, our work includes
verifying that the tagging of these consolidated financial statements comply with the format defined by the aforementioned
Regulation.
On the basis of our work, we conclude that the presentation of the consolidated financial statements to be included in the
annual financial report complies, in all material respects, with the European single electronic format.
Due to the technical limitations inherent in the block‑tagging of the consolidated financial statements in accordance with
the European single electronic format, the content of certain tags in the notes may not be rendered identically to the
accompanying consolidated financial statements.
Besides, we have no responsibility to verify that the consolidated financial statements that will ultimately be included by your
Company in the annual financial report filed with the AMF are in agreement with those on which we have performed our work.
Appointment of the Statutory Auditors
We were appointed Statutory Auditors of Dassault Systèmes S.E. by the General Meeting of Shareholders held on June 8,
2005 for PricewaterhouseCoopers Audit and on May 19, 2022 for KPMG.
At December 31, 2023, PricewaterhouseCoopers Audit and KPMG S.A. were in the nineteenth and the second consecutive
year of their engagement, respectively.
Responsibilities of management and those charged with governance for the consolidated financial statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance
with International Financial Reporting Standards as adopted by the European Union and for implementing the internal control
procedures it deems necessary for the preparation of consolidated financial statements that are free of material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of
accounting, unless it expects to liquidate the Company or to cease operations.
The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control
and risk management systems, as well as, where applicable, any internal audit systems, relating to accounting and financial
reporting procedures.
The consolidated financial statements were approved by the Board of Directors.
Responsibilities of the Statutory Auditors relating to the audit of the consolidated financial statements
Objective and audit approach
Our role is to issue a report on the consolidated financial statements. Our objective is to obtain reasonable assurance about
whether the consolidated financial statements as a whole are free of material misstatement. Reasonable assurance is a high
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Consolidated Financial Statements
level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions taken by users on the basis of
these consolidated financial statements.
As specified in Article L. 821‑55 of the French Commercial Code, our audit does not include assurance on the viability or quality
of the Company’s management.
As part of an audit conducted in accordance with professional standards applicable in France, the Statutory Auditors exercise
professional judgment throughout the audit. They also:
— identify and assess the risks of material misstatement in the consolidated financial statements, whether due to fraud
or error, design and perform audit procedures in response to those risks, and obtain audit evidence considered to be
sufficient and appropriate to provide a basis for their opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control;
— obtain an understanding of the internal control procedures relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal
control;
— evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management and the related disclosures in the notes to the consolidated financial statements;
— assess the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Company’s ability to continue as a going concern. This assessment is based on the audit evidence obtained up to
the date of the audit report. However, future events or conditions may cause the Company to cease to continue as a going
concern. If the Statutory Auditors conclude that a material uncertainty exists, they are required to draw attention in the
audit report to the related disclosures in the consolidated financial statements or, if such disclosures are not provided or are
inadequate, to issue a qualified opinion or a disclaimer of opinion;
— evaluate the overall presentation of the consolidated financial statements and assess whether these statements represent
the underlying transactions and events in a manner that achieves fair presentation;
— obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial statements. The Statutory Auditors are responsible for the
direction, supervision and performance of the audit of the consolidated financial statements and for the opinion expressed
on these consolidated financial statements.
Report to the Audit Committee
We submit a report to the Audit Committee, which includes, in particular, a description of the scope of the audit and the audit
program implemented, as well as the results of our audit. We also report any significant deficiencies in internal control that we
have identified regarding the accounting and financial reporting procedures.
Our report to the Audit Committee includes the risks of material misstatement that, in our professional judgment, were the
most significant in the audit of the consolidated financial statements of the current period and which are therefore the key
audit matters that we are required to describe in this report.
We also provide the Audit Committee with the declaration provided for in Article 6 of Regulation (EU) No 537/2014, confirming
our independence within the meaning of the rules applicable in France, as defined in particular in Articles L. 821‑27 to L.
821‑34 of the French Commercial Code and in the French Code of Ethics for Statutory Auditors. Where appropriate, we discuss
with the Audit Committee the risks that may reasonably be thought to bear on our independence and the related safeguard.
Neuilly‑sur‑Seine and Paris La Défense, March 13, 2024
The Statutory Auditors
PricewaterhouseCoopers Audit
KPMG S.A
Richard Béjot
Partner
Jacques Pierre
Partner
Xavier Niffle
Partner
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Parent company financial statements
4.2
Parent company financial statements
The annual financial statements of the entity Dassault
Systèmes SE present the financial situation and performance
of the parent company without including the accounts of the
Group’s subsidiaries.
The annual financial statements for the year ended
December 31, 2023 prepared in accordance with the current
French accounting rules.
The operating revenue increased 7.9% principally driven by
the growth in third‑party software and services revenues
while the Group’s revenues rose moderately. They amount
to €2,331.3 million compared to €2,160.4 million in 2022.
More precisely, software revenue amount to €1,715.8 million
in 2023 against €1,590.5 million in 2022, reflecting 7.9%
growth. The export revenue amounted to €1,842.7 million
and represented 80.1% of revenue.
Operating expenses increased 9.1% to €1,807.0 million in
2023, from €1,655.7 million in 2022. The main drivers were
as follows:
— the growth of personnel costs resulting from the net
hirings and the salary evolution;
to
increases
— the increase of other purchases and external expenses
IT‑related expenses,
mainly due
in relation to the progression of cloud
particularly
hosting,
the
strengthening of centralization of these costs as well
as subcontracting and rents, with the delivery of a new
building on the Vélizy‑Villacoublay Campus.
in security measures,
increase
the
in
The operating
€504.7 million in 2022 to €524.2 million in 2023.
income therefore
increased 3.9% from
The 2023 financial income amounted to €541.8 million,
compared with €624.5 million in 2022 in relation with a
lower distribution of dividends received from the subsidiaries
in respect of their results for 2022, partially offset by the
increase in investment income.
income and
loss amounted to a
Exceptional
loss of
€78.2 million in 2023 compared to one of €135.1 million
in 2022 primarily reflecting the absence of 2022 penalties
and interests expensed as the consequence of unfavorable
decisions rendered by the French Supreme Court (Conseil
d’Etat) on litigations with the tax administration.
Those decisions also drove the income tax expense decrease
to €51.7 million from €132.9 million in 2022.
The net income rose to €861.2 million in 2023 from
€781.9 million in 2022.
Cash and cash equivalents and marketable securities
amounted to €1,437.4 million, compared with €841.6 million
on December 31, 2022 reflecting the increase in cash
generated by the activity and that of its subsidiaries, the
availability of which is managed centrally by the Company.
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Parent company financial statements
4.2.1
Parent company financial statements and notes
Statement of income
(in millions of euros)
OPERATING REVENUE
Revenue
Of which exports
Other revenue
OPERATING EXPENSE
Other purchases and external expenses
Taxes, duties and similar payments
Personnel Costs
Depreciation, amortization and provisions
Other operating expense
OPERATING INCOME
FINANCIAL INCOME, NET
CURRENT INCOME
EXCEPTIONAL INCOME/(LOSS), NET
EMPLOYEE PROFIT‑SHARING
INCOME TAX EXPENSE
NET INCOME
Year ended December 31,
Note
2023
2022
3
2,331.3
2,160.4
2,301.3
1,842.7
29.9
(1,807.0)
2,135.9
1,740.5
24.5
(1,655.7)
4
5
6
7
(734.4)
(29.2)
(667.8)
(78.5)
(297.0)
524.2
541.8
1,066.0
(78.2)
(75.1)
(51.7)
861.2
(646.8)
(30.0)
(606.3)
(76.1)
(296.5)
504.7
624.5
1,129.2
(135.1)
(79.4)
(132.9)
781.9
234
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Balance sheet
(in millions of euros)
Assets
NON‑CURRENT ASSETS NET
Intangible Assets
Property and Equipment
Non‑current Financial Assets
CURRENT ASSETS NET
Receivables
Marketable Securities
Treasury Shares
Cash and cash equivalents
PREPAID EXPENSES
DEFERRED EXPENSES, BOND ISSUE AND REDEMPTION PREMIUMS
FOREIGN CURRENCY TRANSLATION ADJUSTMENT
Financial statements
Parent company financial statements
Year ended December 31,
Note
2023
2022
10
11
12
13
14
14
14
20
17
7,472.9
300.3
71.7
7,100.8
2,925.7
730.6
1,425.5
757.7
11.9
156.1
10.8
1.9
7,392.7
302.8
55.3
7,034.6
2,149.1
616.3
830.0
691.2
11.6
122.8
13.9
3.0
TOTAL ASSETS
10,567.3
9,681.5
(in millions of euros)
Liabilities and equity
SHAREHOLDERS’ EQUITY
Capital
Share and contribution premiums
Reserves
Retained earnings
Income for the fiscal year
Regulated provisions
PROVISIONS FOR CONTINGENCIES AND LOSSES
FINANCIAL LIABILITIES
TRADE PAYABLES
UNEARNED REVENUE
FOREIGN CURRENCY TRANSLATION ADJUSTMENT
TOTAL LIABILITIES AND EQUITY
Year ended December 31,
Note
2023
2022
15
5,907.4
133.8
1,444.8
13.5
3,451.2
861.2
2.9
679.6
3,017.0
796.9
164.9
1.5
16
17
19
20
5,277.2
133.5
1,399.9
13.5
2,945.6
781.9
2.9
578.5
3,020.3
680.4
122.3
2.7
10,567.3
9,681.5
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Financial statements
Parent company financial statements
Notes to the annual financial statements for years ended
December 31, 2023 and 2022
Note 1
Description of Business and Key
Events of the Year
Note 2
Significant Accounting Policies
Note 3
Operating Revenue
Note 4
Personnel Costs
Note 5
Financial Income, Net
Note 6
Exceptional Income/Loss
Note 7
Income Tax
Note 8
Performance Shares
Note 9
Research and Development Expense
Note 10
Intangible Assets
Note 11
Property and Equipment
Note 12
Non‑Current Financial Assets
Note 13
Receivables
Note 14
Treasury
Note 15
Shareholders’ Equity
247
248
249
Note 16
Provisions for Contingencies and Losses 252
Note 17
Financial Liabilities
253
Note 18
Elements Concerning Related Companies 254
Note 19
Trade Payables
254
Note 20
Prepaid Expenses and Unearned Revenue 255
Note 21
Financial Commitments
255
Note 22
Other Commitments and Contingencies 256
Note 23
Additional Information
Note 24
Information Relating to Subsidiaries
and Shareholdings
256
257
237
238
241
242
243
243
243
244
246
246
246
247
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4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Parent company financial statements
Note 1
Description of Business and Key Events of the Year
Description of business
SE
Systèmes
(“the Company”)
provides
Dassault
broad end‑to‑end software solutions and services:
its
platform‑based virtual twin experiences combine modeling,
simulation, data science and collaborative innovation to
support companies in the three sectors it serves, namely
Manufacturing Industries, Life Sciences & Healthcare, and
Infrastructure & Cities.
These three sectors comprise eleven industries:
— Manufacturing Industries: Transportation & Mobility;
Aerospace & Defense; Marine & Offshore; Industrial
Equipment; High‑Tech; Home & Lifestyle; Consumer
Packaged Goods – Retail. In Manufacturing Industries,
Dassault Systèmes helps customers virtualize their
operations, improve data sharing and collaboration across
their organization, reduce costs and time‑to‑market, and
become 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 Medtech;
— Infrastructure & Cities: Infrastructure, Energy & Materials;
Architecture, Engineering & Construction; Business
Services; Cities & Public Services. In Infrastructure &
Cities, the Group supports the virtualization of the sector
in making its industries more efficient and sustainable,
and creating desirable living environments.
Dassault Systèmes SE (LEI code: 96950065LBWY0APQIM86)
is a European company (Societas Europaea) incorporated
under the laws of France on June 9, 1981 for a 99‑year term
starting on the date of its registration, until August 4, 2080.
The Company’s registered office is located at 10, rue Marcel
Dassault, 78140 Vélizy‑Villacoublay, France.
The Dassault Systèmes SE shares are listed in France on
Euronext Paris. Groupe Industriel Marcel Dassault SAS
(GIMD), which belongs to the Dassault family, is the main
shareholder.
These annual financial statements were established under
the responsibility of the Board of Directors on March 12,
2023.
Key Events of the Year
Employee shareholding
In the first semester 2023, the Company offered an
employee shareholding plan “TOGETHER 2023”.
This plan allows employees, in most countries, to subscribe
to a
leveraged shareholding plan with a discounted
preferential rate of 15% compared to the arithmetic average
of the price of the Dassault Systèmes share weighted by
the volumes traded on the Euronext market during the 20
sessions preceding the date on which the subscription price
is set. The subscription price has thus been set to €31.16 on
May 17, 2023.
Once subscriptions are made, no period of service is required.
The shares must be kept for a period of five years (three
years in the United States), except for cases of early release
covered by plan rule.
The plan was implemented on June 15, 2023, with the
related capital increase of Dassault Systèmes SE. In order
to neutralize the dilutive effect of this plan, the Company
repurchased, in April and May 2023, some treasury shares,
almost all of which have been cancelled in September 2023
(refer to Note 15 Shareholders’ Equity).
Mergers
As part of its program to simplify the organization of its legal
entities throughout the world, Dassault Systèmes SE carried
out the merger operation through Universal Transmission
of Assets (TUP) of
January 3, 2023,
INNERSENSE SAS on February 1, 2023, SPI SOFTWARE SAS
on March 1, 2023 and DIOTASOFT SAS on April 1, 2023
(refer to Note 12 Non Current Financial Assets).
INSPI SAS on
237
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Parent company financial statements
Note 2
Significant Accounting Policies
The financial year lasts for 12 months from January 1 to
December 31.
Licenses, subscription, support
and other software revenue
The annual financial statements for the fiscal year ended
December 31, 2023 are prepared and presented
in
accordance with the rule ANC n°2014‑03 related to the
French General Chart of Accounts (PCG). New standards
and recommendations effective January 1, 2023 have no
significant impact on the annual financial statements.
Software
license revenue represents fees earned from
granting customers licenses to use the Company’s software.
It includes licence revenue of perpetual and periodic license
sales of software products and is recognized at a point in
time for an arrangement when control is transferred to the
client.
In particular, the annual financial statements prepared in
accordance with the principle of prudence, the principle
of continuity of accounting methods from one year to the
next, the independence of financial years, and under the
going concern assumption. Assets and liabilities are initially
recorded at historical cost.
Significant accounting polices applied are as follows:
Revenue
The Company derives revenue from three primary sources:
(i) licenses, other software revenue (which includes the
development of additional functionalities of standard
products requested by clients), subscription and support
(which includes software license updates and technical
training services; and
support);
(iii) royalties from distribution agreements signed with the
Company’s subsidiaries and generally collected in currency of
the subsidiary.
(ii) consulting and
Revenues are disclosed net of taxes collected from customers
and remitted to governmental authorities.
The Company accounts for a contract with a client when
there is a written agreement that creates legally enforceable
rights and obligations, including payment terms, when the
contract has commercial substance and when collection
consideration is probable. A performance obligation is a
promise in a contract with a client to transfer products or
services that are distinct from the other promises of the
contract.
Revenue is recognized when, or as, control of a promised
product or service is transferred to a client, in an amount that
reflects the consideration to which the Company expects to
be entitled in exchange for those products or services.
The Company’s products are also sold by value‑added
resellers that are assessed as principal in the transaction
because they generally have the primary responsibility for
fulfillment to the end‑customer. As a result, the Company
recognizes revenue in the amount of the fee it expects to
be entitled to, i.e. the consideration paid by the distributor,
assuming all other revenue recognition criteria are met.
Subscription contracts generally have a one‑year term and
contain two separate performance obligations pertaining to
on premise software license and support. The revenue from
such arrangements is recognized in line with revenue from
arrangements with multiple performance obligations.
Subscription revenue also is derived from access to cloud
solution contracts including remote access to a software
solution, hosting, support services and managed services
to run cloud solution. Revenue from cloud subscription is
generally recognized linearly over the contractual term.
revenue
fees associated
represents periodic
Support
with the sale of unspecified product updates on a
when‑and‑if‑available basis and technical support. Support
agreements are entered into in connection with the initial
software license purchase. Support may be renewed by
the customer at the conclusion of each term. Revenue from
support is recognized on a straight‑line basis over the term of
the support agreement as the Company has a standing ready
obligation to provide services.
Other software revenue mainly relates to the development
of additional functionalities of standard products requested
by clients and is recognized when the development work is
performed.
Recurring fees for subscription and support are reported
within “Software Revenue”.
Revenue under arrangements with multiple performance
licenses,
obligations, which typically
is
support and/or services agreements sold together
allocated to each distinct performance obligation based on
their standalone selling price.
include software
The stand‑alone selling price is the price at which the
Company would sell a promised product or service separately
to a client. The Company generally establishes stand‑alone
selling price based on the observable prices of products
or services sold separately in comparable circumstances
to similar clients. Estimating stand‑alone selling price is a
formal process that includes review and approval by the
Company’s management.
In certain instances, e.g. perpetual software licenses only
sold bundled with one year of support, the Company is
not able to establish a standalone selling price range based
on observable prices. The stand‑alone selling price is then
determined by applying the residual approach.
238
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Parent company financial statements
When a sale of a license goes along with a service essential to
the software functionality, the two performance obligations
(software and service) are not distinct. Therefore, the license
revenue is recognized in accordance with the pattern of
recognition of the service obligation.
Services Revenue
Services revenue consist primarily of fees from consulting
services in process optimization and in methodology for
design, deployment and support, and training services.
Services generally do not require significant modification
or customization of software products and are accounted
for separately to the extent they are not essential to the
functionality of software products.
Performance obligation from fixed price contracts are usually
satisfied over the time. The revenue is recognized using
percentage of completion based on the labor costs incurred
to date as a percentage of the total estimated labor costs to
fulfill the contract.
Service revenues derived from time and material contracts
are recognized over the time on an output basis as labor
hours are delivered or direct project expenses are incurred.
Royalties from distribution agreements
between the Company and its subsidiaries
Agreements between the Company and its subsidiaries
grant distribution rights of the Company’s softwares in their
respective markets. In consideration for the use of these
rights, the Company invoices royalties to its subsidiaries,
determined in such a way as to guarantee the distribution
subsidiaries an operating margin in line with the arm’s length
principle. Royalties are accounted for when sales are made
by resellers.
Research and development
Research costs are expensed as incurred.
Costs incurred to develop computer software products
include mainly payroll and other headcount‑related
costs. They also
lease
and maintenance costs of computer equipment used for
product development, software expenditures and costs of
information technology and communication.
include amortization expense,
Due to specificities in the software industry, the Company
has determined that technological feasibility is the key
criteria to capitalize development expenditure as
is
generally the last criteria to be met. Currently, the risks and
uncertainties inherent in the software development process
make it difficult to demonstrate technological feasibility
before a working prototype has been completed, which
generally occurs shortly before the commercial release of its
software products. As a consequence, costs incurred after
technological feasibility is established that could potentially
be capitalized are not material.
it
Research and development tax credits are recognized as a
deduction to the income tax expense.
Intangible assets, property and equipment
Intangible assets, property and equipment are recognized at
cost, including ancillary expenses, when they are purchased,
at their production cost when they are produced internally,
and at their integration value.
Under the rule ANC n° 2015‑06 dated November 23, 2015,
technical deficits from mergers and goodwill have been
allocated to their underlying assets (principally technology
and customer relationship) and amortized if necessary since
January 1, 2016 except for residual goodwill considered as
permanent and not amortized. All these assets are subject to
impairment tests every year in accordance with the method
described further along in the following section: Non‑current
Financial Assets.
The Company has assessed the risks and opportunities
related to climate change and has not identified at this stage
any significant impact that could change the estimated
useful lives of property and equipment.
The useful life of intangible assets, property and equipment
is presented below:
Amortization using the straight‑line method
Amortization period
Intangible assets
Software
Technologies and customer assets
Tangible assets
Computer equipment
Fixtures and fittings
Office furniture
3 to 5 years
5 to 10 years
3 to 6 years
Over the term
of the lease
10 years
Non‑current Financial Assets
Investments in subsidiaries are recognized at cost without
revaluation of the transaction currencies. Expenses directly
related to the acquisition of equity securities are included in
the acquisition cost of these securities. Loans and advances
to subsidiaries are valued at their net realizable value.
At least once a year, the Company reviews the net realizable
value of its investments and loans to subsidiaries. The net
realizable value of securities takes into account the amount
of shareholders’ equity, long‑term profitability and strategic
factors based on assumptions and estimates which may have
a significant impact as for instance the comparable position
of stock market ratios or the long term cash forecasts. An
impairment loss is recognized if the net realizable value is
less than the carrying value for a long period of time.
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442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Parent company financial statements
The Company has assessed the risks and opportunities
related to the climate change and has not identified at this
stage any significant risk requiring a provision for risk.
Marketable Securities
Marketable securities are initially recorded at cost and are
depreciated, when applicable, by referring to their quoted
price in an active market at year‑end.
Operating receivables and payables
Trade receivables are reported at their net receivable value
and trade payables are reported at their nominal value. For
trade receivables, an allowance is recorded when the net
realizable value is lower than the carrying value taking into
account, in particular, aging and risk of non‑collectability.
Foreign currency transactions
Transactions in foreign currencies are recorded in euros in
the income statement at the exchange rate of the last day
of the previous month, except for significant transactions,
which are booked at the exchange rate of the transaction
date. Receivables, payables and cash in foreign currencies
are converted to euros in the balance sheet at the closing
exchange rate or at the hedged rate when they are subject
to exchange rate hedging. The conversion differences are
recorded on the balance sheet in “Unrealized Exchange
Losses/Gains”. In the event of unrealized losses, a provision
for contingencies (exchange loss) is recorded.
Provisions for Contingencies and losses
Provisions for contingencies and
losses are recognized
when liabilities to cover are probable to generate outflows
of resources resulting from a present obligation. These
provisions are estimated to take into account the most
probable hypothesis at the closing date.
The expense related to the attribution of performance share
plans is based upon the acquisition share price covering the
aforementioned plans and the market share price, for the
uncovered portion of the plans, the acquisition period and
the estimate that beneficiaries stay until the vesting date
and also the probability to reach the performance conditions.
Derivatives
The Company may choose to manage exposure to foreign
currency and interest rates with regards to revenue and
cost generated by its ongoing and predictable activity.
The Company may also mitigate a given foreign currency
exposure linked to specific operations.
In order to hedge foreign currency exposure, the Company
uses, as needed, foreign exchange contracts or financial
instruments for which total maximum losses are known from
the outset.
Hedging activities are generally carried out and managed
by the Company for its own account and on behalf of
its subsidiaries. In certain cases, however, the Company
may authorize selected subsidiaries to enter into hedging
instruments directly.
The fair market values of derivative instruments were
determined by financial institutions using market prices and
option pricing models.
Interest rate derivatives
Financial income and expense resulting from the use of
derivatives are recorded in the income statement in the
same manner as income and expense from the covered
transactions when the derivatives are considered to be
hedging transactions from an accounting perspective. If the
instruments do not qualify as hedging, they are accounted
for as follows:
— net unrealized losses are fully reserved;
— net gains are recognized in the income statement upon
settlement.
Exchange rate derivatives
Exchange rate derivatives contribute to the Company
currency position. Unrealized losses on these derivatives
are taken into account in determining the provision for
unrealized exchange losses.
Isolated open position
Any transaction that does not qualify as a hedge is classified
in a category called “isolated open position”. The accounting
treatment is as follows:
— derivatives are recorded in the balance sheet at their fair
value;
— a provision for unrealized losses derivatives is booked
impacting the profit and loss account.
As a consequence, changes in the value of derivatives that do
not qualify as hedge are recorded in adjustment accounts.
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4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Note 3
Operating Revenue
Revenue Breakdown
(in millions of euros)
Licenses revenue
Subscription and Support revenue
Royalties
TOTAL SOFTWARE REVENUE
Services revenue
Other revenue
TOTAL REVENUE
The breakdown of software revenue by geographic area is as follows:
(in millions of euros)
Europe
Asia
Americas
TOTAL SOFTWARE REVENUE
Other Revenue
Financial statements
Parent company financial statements
Year ended December 31,
2023
2022
130.6
632.5
952.7
1,715.8
58.5
527.0
2,301.3
122.0
562.8
905.7
1,590.5
52.5
492.9
2,135.9
Year ended December 31,
2023
2022
941.2
447.0
327.7
1,715.8
835.5
445.3
309.6
1,590.5
Other revenue consists mainly in recharges of shared costs and central services, which are performed for the benefit of the
Company’s subsidiaries and in revenue derived from R&D activities subcontracted to affiliates.
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442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Parent company financial statements
Note 4
Personnel Costs
Personnel costs are broken down as follows:
(in millions of euros)
Salaries and wages
Social contributions
TOTAL PERSONNEL COSTS
Year ended December 31,
2023
449.2
218.6
667.8
2022
439.9
166.5
606.3
The increase in social contributions reflects the evolution of the Company’s share price, which drives the social contributions
due on performance share plans (refer to Note 8 Performance Shares).
Average Headcount by Category
Salaried employees by category
Executives («cadres»)
Supervisors and technicians
Employees
TOTAL AVERAGE HEADCOUNT (in full time equivalents)*
*
Apprentices and professional training contractors excluded.
Year ended December 31,
2023
4,200
111
29
4,340
2022
3,897
109
20
4,026
The Company headcount increased notably to serve the growth of the Group and the investments in research and
development.
Compensation of Executives
The compensation of the Company’s executive officers is entirely paid by Dassault Systèmes SE. The amounts below relate to
Mr. Charles Edelstenne (until January 8, 2023), Mr. Bernard Charlès and Mr. Pascal DALOZ (since January 9, 2023):
(in thousands of euros)
Salaries
Benefits in kind
Directors’ fees*
TOTAL COMPENSATION OF EXECUTIVES
Year ended December 31,
2023
4,280
20
110
4,409
2022
4,199
18
114
4,331
*
The Directors’ fees presented here correspond to payments made in 2023 for 2022. The Directors’ fees earned in 2023 total €161,000 and will be paid in 2024.
242
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Note 5
Financial Income, Net
Net financial income is as follows:
(in millions of euros)
Dividends received
Interest income
Interest expense
DIVIDEND & INTEREST INCOME, NET
Revenue from disposals of investment securities
Net foreign exchange income (expense), net other financial contingencies
Net reversal (additions) of provisions for impairment of investments
FINANCIAL INCOME, NET
Financial statements
Parent company financial statements
Year ended December 31,
2023
534.6
21.9
(27.2)
529.3
38.8
(1.3)
(25.0)
541.8
2022
636.4
6.5
(10.3)
632.6
6.0
1.4
(15.5)
624.5
In 2023, the Company received €534.6 million dividends from its subsidiaries, of which €478,9 million served by Dassault
Systèmes Americas Corp.
Note 6
Exceptional Income/Loss
Exceptional loss for the year ended December 31, 2023
is €78.2 million compared to a loss of €135.1 million for
the year ended December 31, 2022. The change is mainly
impacted by penalties and interests recorded as expense in
2022 in the context of unfavorable decisions rendered by
the French Supreme Court (Conseil d’Etat) on litigations with
the French tax administration (refer to Note 1 Description of
business and Key Events of the year).
Note 7
Income Tax
The expense for performance shares granted to Mr. Bernard
Charlès, Vice chairman of the Board of Directors and Chief
Executive Officer until January 8, 2023 and Chairman of
the Board of Directors and Chief Executive Officer from
January 9, 2023 to December 31, 2023, is recorded as an
exceptional item (refer to Note 8 Performance Shares).
The Company is the head of a tax group, including 6 entities
at the end of December 2023.
stand‑alone entity, the Company income tax would have
amounted to €55.7 million in 2023.
The tax integration agreement states that the income tax of
tax‑integrated companies will be the same as it would have
been if each subsidiary had not been a member of it. As a
The breakdown of income tax between current income and
exceptional loss for the year ended December 31, 2023, is as
follows:
(in millions of euros)
Current income
Exceptional loss
TOTAL
Income
before tax
Tax (expense)
credit
Income after
income tax
1,066.1
(153.2)
912.8
(96.7)
45.0
(51.7)
969.4
(108.2)
861.2
income tax
The effective
rate for the year ended
December 31, 2023 was 5.7% against 14.5% in 2022.
This decrease is principally driven by the record of an
expense, in 2022, paid to the French tax administration and
disputed towards the French Supreme Court. In addition,
extra‑accounting deductions relating to the employee
shareholding plan “TOGETHER” and losses for the year
incurred by companies merged also explain the decrease in
the rate. The tax rate is also lowered by intragroup dividends
which are partially taxed under the French specific tax regime
to the extent of their related expenses.
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442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Parent company financial statements
Note 8
Performance Shares
New plans granted in 2023
Plans 2023‑A and 2023‑B
Plans 2023‑M1 and 2023‑M2
Pursuant to an authorization granted by the General Meeting
of Shareholders held on May 24, 2023, the Board of Directors
decided, the same day, to grant 3,707,133 performance
shares (Plan 2023‑A) to some employees and executives of
the Group, and 1,500,000 performance shares (Plan 2023‑B)
to Mr. Bernard Charlès, Chairman & Chief Executive Officer,
as part of a plan of progressively associating him with the
Company’s capital implemented several years ago.
The shares of these 2023‑A and 2023‑B plans shall be
acquired subject to the end of a period of around three years.
They shall vest, in full or in part, if some performance criteria
are achieved, and the beneficiary is still an employee, an
executive or a corporate officer of the Group at the end of a
service period ending on November 24, 2025.
The Board of Directors also decided on May 24, 2023 to
grant 926,310 performance shares (Plan 2023‑M1) to some
employees and executives of the Group.
The shares of these 2023‑M1 and 2023‑M2 plans shall
be acquired at the end of a period of one year (tranche
1), two years approximately (tranche 2) and three years
approximately (tranche 3) from the grant date. They shall
vest, in full or in part, if the beneficiary is still an employee
or an executive of the Group at the end of these periods and
provided certain performance conditions are achieved.
A summary of the Group’s performance shares plans is as follows:
Plans
2020‑A
2020‑B
2020‑M
2021‑A
2021‑B
2021‑M1
Date of General Meeting of Shareholders
Date of grant by Board of Directors
Total number of shares granted
Restated total number of shares granted (1)
05/22/2018
05/26/2020
804,966
4,024,830
05/22/2018
05/26/2020
300,000
1,500,000
05/22/2018
05/26/2020
56,721
283,605
Acquisition period (in years) (2)
Performance conditions
Performance conditions
is reached at December 31, 2023
Four
See note (3)
See note (9)
Four
See note (3)
See note (9)
Three
See note (4)
Yes
05/26/2021
06/29/2021
741,569
3,707,845
Two
or Four (5)
See note (6)
Voir note (9)
05/26/2021
06/29/2021
300,000
1,500,000
Two
or Four (5)
See note (6)
Voir note (9)
N/A
06/29/2021
175,371
876,855
One, Two,
Three or Four (5)
See note (4)
See note (9)
Plans
2021‑M2
2022‑A1
2022‑B
2022‑M1
2022‑A2
2022‑M2
09/22/2021
16,982
16,982
One, Two,
Three or Four (5)
See note (4)
See note (9)
N/A 05/26/2021
05/19/2022
3,690,907
3,690,907
05/26/2021
05/19/2022
1,500,000
1,500,000
N/A 05/26/2021
09/21/2022
28,523
28,523
Three
See note (3)
N/A
Three
See note (3)
N/A
Three
See note (3)
N/A
05/19/2022
817,809
817,809
One, Two,
or Three (5)
See note (4)
See note (9)
N/A
09/21/2022
24,264
24,264
One, Two,
or Three (5)
See note (4)
See note (9)
Date of General Meeting of Shareholders
Date of grant by Board of Directors
Total number of shares granted
Restated total number of shares granted (1)
Acquisition period (in years) (2)
Performance conditions
Performance conditions
is reached at December 31, 2023
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4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Parent company financial statements
Plans
2023‑A
2023‑B
2023‑M1
2023‑M2
Date of General Meeting of Shareholders
Date of grant by Board of Directors
Total number of shares granted
Restated total number of shares granted (1)
Acquisition period (in years) (2)
Performance conditions
Performance conditions is reached at December 31, 2023
05/24/2023
05/24/2023
3,707,133
3,707,133
05/24/2023
05/24/2023
1,500,000
1,500,000
Three
See note (7)
N/A
Three
See note (7)
N/A
N/A
05/24/2023
926,310
926,310
One, Two,
or Three (5)
See note (8)
See note (9)
N/A
09/20/2023
28,003
28,003
One, Two,
or Three (5)
See note (8)
See note (9)
(1) Presented in order to reflect the five‑for‑one share split effected on July 7, 2021.
(2) For the 2020‑M, 2021‑M1, 2021‑M2, 2022‑M1, 2022‑M2, 2023‑M1 and 2023‑M2 plans, subject to the condition that the beneficiary be an employee or a Director of the
Group at the acquisition date. The presence period is three years for the 2020‑A and 2020‑B plans, one year and a half and three years for the 2021‑A and 2021‑B plans
(respectively for tranches 1 and 2), and two years and a half for the 2022‑A1, 2022‑B, 2022‑A2, 2023‑A and 2023‑B plans.
(3) For the 2020 and 2022 plans (2020‑M, 2022‑M1, 2022‑A2, 2022‑M2 excluded): performance condition based on a targeted growth between the non‑IFRS diluted EPS
excluding foreign currency effects for the respective years 2023 and 2024, and the one achieved in the respective years 2019 and 2021 (non‑vesting condition). Such
growth must be at least equal to a threshold (expressed as a percentage) established by the Board of Directors granting the shares. For the 2022‑A2 plan, performance
condition based on a targeted growth between the non‑IFRS diluted EPS excluding foreign currency effects for the year 2024 and the one achieved in 2021 (vesting
condition).
(4) For the 2020‑M plan, performance condition based on the growth of the non‑IFRS revenue and of the non‑IFRS operating margin of the MEDIDATA activity. This double
condition, is based on targeted growths between the year 2022, excluding foreign currency effects, and the levels of satisfaction of the year 2019 (vesting condition).
For the 2021‑M1 and 2021‑M2 plans, the criteria of the non‑IFRS diluted EPS on the one hand and the non‑IFRS revenue and the non‑IFRS operating margin on the other
hand, are based on targeted growths between the years 2021, 2022, 2023 and 2024 (respectively for each tranche), excluding foreign currency effects, and the levels
of satisfaction of the year 2020 (vesting condition). For the 2022‑M1 and 2022‑M2 plans, the criteria of the non‑IFRS diluted EPS on the one hand and the non‑IFRS
revenue and the non‑IFRS operating margin on the other hand, are based on targeted growths between the years 2022, 2023 and 2024 (respectively for each tranche),
excluding foreign currency effects, and the levels of satisfaction of the year 2021 (vesting condition).
(5) Share acquisition divided into two tranches for 2021‑A and 2021‑B plans, the first having vested on June 29, 2023 and the second vesting on June 30, 2025. Share
acquisition divided into four tranches for 2021‑M1 (respectively vesting on June 29, 2022, June 29, 2023, July 1, 2024 and June 30, 2025) and 2021‑M2 (respectively
vesting on September 22, 2022, September 22, 2023, September 23, 2024 and September 22, 2025). Share acquisition divided into three tranches for 2022‑
M1 (respectively vesting on May 19, 2023, May 20, 2024 and May 19, 2025) and 2022‑M2 (respectively vesting on September 21, 2023, September 23, 2024 and
September 22, 2025). Share acquisition divided into three tranches for 2023‑M1 (respectively vesting on May 24, 2024, May 26, 2025 and May 26, 2026) and 2023‑M2
(respectively vesting on September 20, 2024, September 22, 2025 and September 21, 2026).
(6) For the 2021‑A and 2021‑B plans, the performance condition will be measured based on the growth of the non‑IFRS diluted EPS for the year 2022 (tranche 1) and the
year 2024 (tranche 2), neutralized from currency effects, compared to that of the year 2020 (non‑vesting condition).
(7) For the 2023‑A and 2023‑B plans, performance condition based on two elements: for a weight of 80% on a targeted growth between the non‑IFRS diluted EPS excluding
foreign currency effects for 2025, and the one achieved in 2022 (non‑vesting condition). Such growth must be at least equal to a threshold (expressed as a percentage)
established by the Board of Directors granting the shares; for a weight of 20% on the achievement of three environmental, social and governance criteria by the Group
(mainly non‑market vesting conditions): i) the share of total IFRS revenue deemed eligible within the meaning of EU Taxonomy, ii) the reduction in greenhouse gas
emissions in line with the targets submitted to the Science‑Based Targets initiative (three sub‑criteria) and iii) the diversity (three sub‑criteria).
(8) For 2023‑M1 and 2023‑M2 plans, performance conditions will be measured based on the level of achievement of the following three conditions: for a weight of 40% on
the growth of the non‑IFRS diluted EPS of the Group for the years 2023 (tranche 1), 2024 (tranche 2) and 2025 (tranche 3), neutralized from currency effects, compared
to that of the year 2022 (non‑market vesting condition); for a weight of 40% on the growth neutralized from currency effects of the non‑IFRS revenue and of the non‑
IFRS operating margin of the MEDIDATA brand (double criteria) for the years 2023 (tranche 1), 2024 (tranche 2) and 2025 (tranche 3), compared to that of the year 2022
(non‑market vesting condition); for a weight of 20% on the achievement of three environmental, social and governance criteria by the Group (mainly non‑market vesting
conditions): i) the share of total IFRS revenue deemed eligible within the meaning of EU Taxonomy, ii) the reduction in greenhouse gas emissions in line with the targets
submitted to the Science‑Based Targets initiative (three sub‑criteria) and iii) the diversity (three sub‑criteria).
(9) Performance conditions related to the following plans have been fulfilled: 2021‑A (tranche 1), 2021‑B (tranche 1), 2021‑M1 (tranches 1 and 2), 2021‑M2 (tranches 1 and 2),
2022‑M1 (tranche 1) et 2022‑M2 (tranche 1). Performance conditions will be measured by the March 12, 2024 Board of Directors related to the following plans: 2020‑A,
2020‑B, 2021‑M1 (tranche 3), 2021 M2 (tranche 3), 2022‑M1 (tranche 2), 2022‑M2 (tranche 2), 2023‑M1 (tranche 1) and 2023‑M2 (tranche 1).
Dassault Systèmes SE recorded as operating items an accrual
for the total foreseeable costs relating to the rights to receive
Dassault Systèmes SE shares granted to beneficiaries directly
contributing to its activity. The expense related to other
Group beneficiaries is recorded as exceptional item together
with an accrued income for the same amount, representing
the recharge to subsidiaries due on maturity dates of the
plans.
245
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Parent company financial statements
Note 9
Research and Development Expense
In 2023, the Company recorded a total of €372.3 million of
research and development expenses, representing 21.7%
of software revenue. This amount reflects a full‑cost basis
including IT and facility costs, as well as employee profit
sharing, net of intercompany recharges and grants.
Note 10
Intangible Assets
(in millions of euros)
Goodwill
Software, customer relationship and other
TOTAL GROSS VALUE
Goodwill
Software, customer relationship and other
TOTAL AMORTIZATION AND PROVISIONS
Goodwill
Software, customer relationship and other
TOTAL NET VALUE
Year ended December 31,
2022
Addition
Disposal
107.1
608.0
715.1
(21.8)
(390.5)
(412.3)
85.3
217.5
302.8
5.2
37.0
42.2
(0.1)
(44.5)
(44.7)
5.0
(7.5)
(2.5)
‑
‑
‑
‑
‑
‑
‑
‑
‑
2023
112.2
645.0
757.2
(21.9)
(435.1)
(457.0)
90.4
209.9
300.3
Residual goodwill considered as non‑depreciable asset, amounts to €90.4 million net of provisions.
Intangible assets grew mostly from the acquisition by the Company of a customer relationship from a subsidiary and from
mergers occurred during the fiscal year.
Note 11
Property and Equipment
(in millions of euros)
Machinery and equipment
Fixtures and fittings
Office furniture and equipment
TOTAL GROSS VALUE
Machinery and equipment
Fixtures and fittings
Office furniture and equipment
TOTAL DEPRECIATION
Machinery and equipment
Fixtures and fittings
Office furniture and equipment
TOTAL NET VALUE
Year ended December 31,
2022
Addition
Disposal
126.7
33.3
6.7
166.7
(93.1)
(15.6)
(2.8)
(111.4)
33.6
17.7
3.9
55.3
20.6
14.7
1.0
36.3
(16.5)
(2.1)
(0.7)
(19.3)
4.1
12.6
0.3
17.0
(4.9)
(0.9)
(0.7)
(6.4)
4.8
0.5
0.6
5.9
(0.0)
(0.3)
(0.1)
(0.5)
2023
142.4
47.1
7.1
196.6
(104.7)
(17.2)
(3.0)
(124.8)
37.7
29.9
4.1
71.7
The acquisitions are mainly related to fit‑out of the new building on the headquarter campus.
246
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Parent company financial statements
Note 12
Non‑Current Financial Assets
(in millions of euros)
2022
Addition
Disposal
2023
Year ended December 31,
Investments in subsidiaries
Loans and advances to subsidiaries
Treasury Shares
Others
TOTAL GROSS VALUE
Provision for impairment
TOTAL PROVISION FOR IMPAIRMENT
Investments in subsidiaries
Loans and advances to subsidiaries
Treasury Shares
Others
TOTAL NET VALUE
6,641.0
430.3
24.9
7.7
7,104.0
(69.4)
(69.4)
6,571.6
430.3
24.9
7.7
7,034.6
518.0
67.2
303.5
133.5
1,022.1
(25.0)
(25.0)
493.0
67.2
303.5
133.5
997.1
(16.1)
(484.0)
(311.8)
(120.0)
(931.9)
1.1
1.1
(15.0)
(484.0)
(311.8)
(120.0)
(930.8)
7,142.9
13.5
16.6
21.1
7,194.1
(93.3)
(93.3)
7,049.6
13.5
16.6
21.1
7,100.8
The increase in participations corresponds to the capital
increase of Dassault Systèmes International by offsetting
receivables for an amount of €515.4 million.
The decrease in investments in subsidiaries is primarily
driven by merger impacts of INSPI SA, INNERSENSE SAS,
SPI SOFTWARE SAS et DIOTASOFT SAS
to
Note 1 Description of Business and Key Events of the Year).
(refer
The movements in treasury shares are primarily due to
the repurchase of treasury shares and their subsequent
cancellation, on September 20, 2023 in order to neutralize
the dilutive effect of the employee shareholding plan
“TOGETHER” (refer to Note 1 Description of Business and
Key Events of the Year).
impairment tests realized
The
in 2023 on financial
investments (refer to Note 2 Significant Accounting Policies)
led to an additional provision of €25.0 million. This amount
relied on hypothesis that could have a significant impact
or sensibility such as the comparable ratio derived from a
selected range of companies or the long‑term cash forecasts.
Note 13
Receivables
Accounts receivable
At December 31, 2023, gross accounts receivable amounts to €605.8 million compared with €507.4 million at December 31,
2022, including related companies (refer to Note 18 Elements Concerning Related Companies). Accounts receivables are
depreciated for €6.5 million.
Third party outstanding invoices are broken down as follows:
(in millions of euros)
(A) Overdue split
Year ended December 31, 2023
0 day
(indicative)
1 to
30 days
31 to
60 days
61 to
90 days
91 days
and over
Total (1 day
and over)
Number of invoices
Total amount of invoices (VAT excluded)
Percentage of total external revenue
(VAT excluded)
Total amount of trade receivables
excluded from (A) related to claims
or not yet issued (VAT excluded)
13,852
225.6
27.4%
12.0
11.6
1.4%
3.5
0.4%
0.7
0.1%
5.8
0.7%
10,944
21.5
2.6%
General payment terms applied by the Company to third parties are set out from 30 days end of the month to 60 days net.
247
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Parent company financial statements
Other receivable
Other receivable are as follows:
(in millions of euros)
SUPPLIER ADVANCES AND DEPOSITS
Current accounts with debit balances
Tax and social receivable
Other receivable
TOTAL OTHER RECEIVABLE
Less than
1 year
More than
1 year
1.5
2.4
108.0
18.9
129.2
0.1
‑
‑
0.3
0.3
Year ended December 31,
2023
1.7
2.4
108.0
19.2
129.5
2022
2.9
3.5
97.3
16.8
117.5
The decrease in tax and social receivable is principally explained by the record of an expense of €144.9 million representing the
loss of the amounts paid to the French tax administration (refer to Note 1 Description of business and Key Events of the year).
Note 14
Treasury
Marketable Securities
On December 31, 2023, marketable securities amount to
€1,425.5 million compared to €830.0 million on December 31,
2022. They primarily consist in euro denominated monetary
investments.
Cash and marketable securities increased from €841.6 million
at December 31, 2022 to €1,437.4 million at December 31,
2023 due to its operational and holding activities as well as
centralized cash management for some of its subsidiaries.
Treasury Shares
Share repurchases are analyzed below as at December 31, 2023:
Treasury shares directly purchased by the Company (1)
Treasury shares purchased through liquidity agreement (2)
TREASURY SHARES AS OF DECEMBER 31, 2023
Number
of shares
authorized
and issued
20,216,897
400,987
20,617,884
Average price
(in euros)
Total
(in millions
of euros)
37.48
41.38
37.55
757.7
16.6
774.3
(1) The General Meeting of Shareholders of May 24, 2023 authorized the Board of Directors to implement a share repurchase program limited to 25.0 million of shares. Under
this authorization, the Company may not spend more than an annual aggregate amount of €1 billion.
(2) The Company has been contracting in a liquidity agreement with the broker Oddo BHF SCA since 2015. In 2023 as part of this contract, 3,096,015 shares were acquired at
an average price of €38.77, and 3,407,314 were sold, at an average price of €39.16.
248
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial statements
Parent company financial statements
Note 15
Shareholders’ Equity
Share Capital
Changes in share capital during the year ended December 31, 2023 are as follows:
SHARES AS OF JANUARY 1
Capital increase
Capital decrease
Shares issued pursuant to exercise of share subscription options
SHARES AS OF DECEMBER 31
Number
of shares
authorized
and issued
Par value
(in euro)
Capital
(in euros)
1,335,039,708
0.10 133,503,971
4,688,515
(4,688,515)
2,876,725
1,337,916,433
0.10
0.10
0.10
0.10
468,852
(468,852)
287,673
133,791,643
The increase and decrease of share capital are related to employee shareholding plan TOGETHER (refer to Note 1 Description
of business and Key Events of the year).
Shareholder base
On December 31, the share capital of the Company is held by:
(%)
Public
Groupe Industriel Marcel Dassault
Charles Edelstenne (1)
Bernard Charlès (2)
Treasury shares (3) and indirect treasury shares (4)
Pascal Daloz (5)
TOTAL
On December 31, the voting rights in the Company are held by:
(in % of exercisable voting rights)
Groupe Industriel Marcel Dassault SAS
Public
Charles Edelstenne (1)
Bernard Charlès (2)
Pascal Daloz (5)
TOTAL
2023
2022
50.16
40.02
5.97
1.88
1.73
0.24
100.00
50.29
40.11
5.97
1.83
1.58
0.22
100.00
2023
2022
53.93
35.32
8.03
2.43
0.29
100.00
54.09
35.28
8.04
2.32
0.27
100.00
(1)
Including shares held in two family trusts managed by Mr. Edelstenne.
At December 31, 2023, Mr. Edelstenne held 21,711,007 shares with all ownership rights and 16,910 shares through two family companies which he manages,
representing a total of 1.62% of the capital and 2.17% of the exercisable voting rights, as well as 58,143,558 shares with “beneficial” rights (usufruit). For the usage
rights with respect to these 58,143,558 shares, representing 5.85% of the exercisable voting rights, Mr. Edelstenne can only exercise the right to vote on decisions of the
General Meeting concerning the allocation of profits; the holders of the bare property rights (nue‑propriété) exercise the right to vote for other resolutions in compliance
with Article 11 of the by‑laws.
For details related to shares held by Mr. Edelstenne as of December 31, 2022 and December 31, 2020, refer to paragraph 6.3.1. of Universal registration documents for
2022 and 2021 respectively.
(2) For further information, refer to paragraph 5.1.4 “Summary of the Compensation and Benefits due to Corporate Officers (mandataires sociaux)”.
(3)
Including 400,987 shares through the liquidity agreement as of December 31, 2023. As of December 31, 2022, such number was 712,286 shares.
(4) Shares held by SW Securities LLC. This company is a Dassault Systèmes subsidiary; the Dassault Systèmes’ shares held by it do not have voting rights.
(5) Mr. Pascal Daloz was appointed executive officer and Deputy Chief Executive Officer on January 9, 2023.
249
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Financial statements
Parent company financial statements
Stock Options
The main features of the Group stock option plans are as
follows:
— options vest over various periods ranging from one to
three years and a half, subject to continued employment;
— options expire ten years from grant date, or after
termination of employment or term of office, whichever
is earlier;
— options have generally been granted at an exercise price
equal to or greater than the grant date market value (or
the market value the day before the grant) of Dassault
Systèmes SE share.
The Company issues new shares when options are granted.
New plans granted in 2023
Pursuant to an authorization granted by the General
Meeting of Shareholders held on May 24, 2023, the Board of
Directors decided, the same day, to grant 2,140,126 options
to subscribe to Dassault Systèmes SE shares to certain
employees and executives of the Group, at an exercise price
of €39.40 (Plan 2023‑01), equal to the closing value of the
Dassault Systèmes SE share the day before the grant.
Such options are divided in three tranches. They shall vest if
the beneficiary is an employee or an executive of the Group
at the end of a service period of one year (tranche 1), one
year and a half (tranche 2) and two years and a half (tranche
3), and subject to the achievement of certain performance
conditions. The performance conditions will be measured
based on:
— for a weight of 80%: the growth of non‑IFRS diluted
EPS for the years 2023 (tranche 1), 2024 (tranche 2)
and 2025 (tranche 3), neutralized from currency effects,
compared to that of the year 2022 (non‑market vesting
condition for tranche 1 and non‑vesting condition for
tranches 2 and 3);
— for a weight of 20%: the achievement of three
environmental, social and governance criteria by the
Group for the years 2023 (tranche 1), 2024 (tranche
2) and 2025 (tranche 3) (mainly non‑market vesting
conditions for tranche 1 and non‑vesting conditions for
tranches 2 and 3). These three criteria are: the share of
total IFRS revenue deemed eligible within the meaning of
EU Taxonomy, the reduction in greenhouse gas emissions
in line with the targets submitted to the Science‑Based
Targets initiative (three sub‑criteria) and the diversity
(three sub‑criteria).
Other information related to the stock options
A summary of the Group’s stock option activity is as follows:
2023
Weighted
average
exercise price
2022
Weighted
average
exercise price
Number
of options
Number
of options
OUTSTANDING AS OF JANUARY 1,
25,771,918
€26.35
27,022,622
Granted
Exercised
Forfeited
OUTSTANDING AS OF DECEMBER 31,
Exercisable
2,140,126
(2,876,725)
(271,534)
24,763,785
39,40
24,67
33,11
€27.60
1,989,674
(2,323,055)
(917,323)
25,771,918
18,929,104
€24.83
18,439,688
€25.54
37.17
23.92
31.86
€26.35
€23.43
250
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial statements
Parent company financial statements
The remaining contractual lives and exercise prices of options outstanding as of December 31, 2023 are presented below:
Stock option plan
2015‑01
2016‑01
2017‑01
2018‑01
2019‑01
2020‑01
2020‑M‑01
2020‑M‑02
2020‑M‑03
2021‑01
2022‑01
2023‑01
OUTSTANDING AS OF DECEMBER 31,
Number
of options
Remaining
life (years)
Exercise
price
936,248
1,386,624
2,415,019
3,582,889
4,116,174
5,207,823
17,825
1,081,745
130,095
1,910,939
1,845,191
2,133,213
24,763,785
1,68
2,40
3,39
4,39
5,50
6,40
6,19
6,40
6,73
7,50
8,39
9,40
5.76
12,40
13,80
16,40
22,00
28,00
29,09
26,20
29,09
31,57
41,32
37,17
39,40
€27.60
Movements in Shareholders’ Equity
Changes in shareholders’ equity for the year ended December 31, 2023 are as follows:
(in millions of euros)
Share Capital
Share and contribution premiums
Reserves
Retained earnings
Income for the fiscal year
Regulated provisions
SHAREHOLDERS’ EQUITY
Appropriation
of 2022
earnings
Effect of
exercising
options
Net income
for 2023
fiscal year
‑
‑
0.0
505.6
(781.9)
‑
(276.2)
0.3
44.9
‑
‑
‑
(0.0)
45.2
‑
‑
‑
‑
861.2
‑
861.2
2022
133.5
1,399.9
13.5
2,945.6
781.9
2.9
5,277.2
2023
133.8
1,444.8
13.5
3,451.2
861.2
2.9
5,907.4
Movements in shareholder’s equity result from the issuances
of new shares from stock option plans and from the
share capital increase then decrease related to employee
shareholding plan TOGETHER (refer to Note 1 Description of
business and Key Events of the Year).
Dividend rights
The May 2023 and May 2022 Shareholders’ Meetings have decided to distribute dividends, fully in cash, for €276.2 million
and €223.5 million, respectively.
251
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Parent company financial statements
Note 16
Provisions for Contingencies and Losses
Movements of provisions for contingencies and losses are as follows:
Year ended December 31,
(in millions of euros)
2022
Addition
Utilization
Provisions for performance shares*
Provisions for exchange losses
Provisions for post‑employment benefits
Other provisions for contingencies and losses
Provisions for jubilee awards
TOTAL PROVISIONS
*
Refer to Note 8 Performance Shares.
528.8
3.0
35.4
9.2
2.1
578.5
264.1
1.9
5.7
2.5
0.1
274.3
(167.5)
(3.0)
‑
(1.9)
(0.1)
(172.5)
Reversal of
unutilized
amounts
‑
‑
‑
(0.7)
‑
(0.7)
2023
625.4
1.9
41.0
9.1
2.2
679.6
Changes in provisions for contingencies and losses impact captions of the income statement as follows:
(in millions of euros)
Operating income
Financial income, net
Exceptional income/(loss)*
TOTAL
*
Refer to Note 8 Performance Shares.
Addition
Utilization
152.5
‑
121.7
274.2
(79.0)
(0.5)
(93.0)
(172.5)
Reversal of
unutilized
amounts
(0.7)
‑
‑
(0.7)
Provisions for Post‑employment Benefits
The Company commitment related to post‑employment
benefits is evaluated and recognized using the prospective
actuarial method based on right pro rata acquisition with
the use of a corridor. This method takes into account rights
acquired by employees on the date of their retirement,
computed on the basis of the employees’ seniority and
annual salary at the time of retirement, recognized on a
straight‑line basis, on period before the retirement age, and
given maximum rights. These rights are acquired and paid as
a lump sum to employees when they retire.
The projected benefit obligation at December 31, 2023 is
determined based on the following assumptions: retirement
between 60 and 65 years of age, discount rate of 3.20%,
average increase in salaries of 3.10% and a 3.20% expected
return on funds. The Company has an insurance policy
with a life insurance company that covers the retirement
payment commitments. In respect of this policy, the funds
amount to a total of €16.6 million as of December 31, 2023.
Actuarial impacts on the cost of past services are spread in
operating income using the corridor method. They amount to
a net expense of €2.4 million, to be spread over 21.71 years
representing the estimated length of residual employee
service.
252
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Parent company financial statements
Less than
1 year
1 to
5 years
More than
5 years
Year ended December 31,
2023
2022
701.6
0.1
250.0
7.5
‑
959.1
900.0
‑
‑
‑
7.8
907.8
1,150.0
‑
‑
‑
‑
1,150.0
2,751.6
0.1
250.0
7.5
7.8
3,017.0
2,751.6
0.1
250.0
10.9
7.7
3,020.3
Note 17
Financial Liabilities
Financial liabilities are as follows:
(in millions of euros)
Bond
Bank loans and borrowings
Commercial papers
Employee profit‑sharing scheme
Other financial liabilities
TOTAL FINANCIAL LIABILITIES
Bonds
On November 17, 2023, Standard & Poors Global Ratings
reaffirmed their “A” rating with a Stable outlook for Dassault
Systèmes SE and its long term debt.
issued a four
On September 16, 2019, the Company
tranches of fixed rate bond for a total of €3,650.0 million.
This issuance was part of the financing of the acquisition of
Medidata completed in October 2019.
On September 16, 2022, the Company reimbursed the first
tranche of bonds for €900.0 million.
The conditions of the remaining tranches of bonds are as follows:
Bond
2024
2026
2029
Nominal amount
(in millions of euros)
Maturity date
Coupon
700.0
900.0
1,150.0
September 16, 2024
September 16, 2026
September 16, 2029
0.000%
0.125%
0.375%
The terms and conditions of these bonds are detailed in the transaction note having obtained the AMF visa n° 19‑434 dated
September 12, 2019. As of December 31, 2023, €5.8 million bond issue premium was booked as an asset.
Commercial papers
Line of credit
In July 2022, the Company launched a program of commercial
papers (Negotiable EUropean Commercial Paper – NEU CP)
with a maximum outstanding amount of €750.0 million.
As of December 31, 2023, the Company issued under this
program €250.0 million with a maximum maturity of three
months and not yet reimbursed.
The Company received a financing commitment in the form
of a revolving line of credit of €750.0 million for a period of
5 years from October 28, 2019. In May 2020 and May 2021,
the Company exercised its option to extend its term for one
year respectively, bringing the new termination date to
October 2026. As of December 31, 2023, the line of credit
was not drawn down.
253
442023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES Financial statements
Parent company financial statements
Note 18
Elements Concerning Related Companies
(in millions of euros)
Loans receivable
Trade accounts receivable and related items
Current accounts receivable
Accounts payable and related items
Current accounts with credit balances
Finance income: dividends collected and net interest received
Year ended December 31,
2023
13.5
387.4
2.4
72.4
376.8
555.8
2022
430.3
318.5
2.6
62.0
293.4
642.5
Decrease in loan receivable is linked to the conversion into
capital of those granted to Dassault Systèmes International
for an amount of €493.5 million.
The decrease in trade accounts receivable and related items
is principally explained by changes in intra‑group billing of
performance shares costs in relation with the decrease of the
Company share price (refer to Note 13 Receivables).
The financial income reflects dividends received from its
subsidiaries (refer to Note 5 Financial Income, Net).
Note 19
Trade Payables
Trade payables
As of December 31, 2023, trade payables amount to €157.7 million compared with €132.6 million at December 31, 2022.
Third party outstanding invoices are broken down as follows:
(in millions of euros)
(A) Overdue split
Year ended December 31, 2023
0 day
(indicative)
1 to
30 days
31 to
60 days
61 to
90 days
91 days
and over
Total
(1 day and over)
Number of invoices
Total amount of invoices (VAT excluded)
Percentage of total external purchases
(VAT excluded)
Total amount of trade payables
excluded from (A) related to invoices
not yet recognized (VAT excluded)
1,212
34.4
9.9%
41.0
0.1
0.0%
0.0
0.0%
0.0
0.0
33
0.2
0.0%
0.0%
0.0%
Reference payment terms applied by the Company with
third parties are generally end of the month 45 days. More
favorable terms for small vendors of the domestic market have
been applied since the outburst of the health crisis in 2020.
Overdue invoices are mostly related to compliance issues and
are monitored very closely for prompt and fair resolution.
Other operating liabilities
Other operating liabilities are as follows:
(in millions of euros)
Tax and social liabilities
Current accounts with credit balances
Other liabilities
TOTAL OTHER LIABILITIES
254
Less than
1 year
More than
1 year
239.8
376.8
20.1
636.6
2.3
‑
0.3
2.6
Year ended December 31,
2023
242.1
376.8
20.4
639.2
2022
233.4
293.4
20.9
547.8
4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Financial statements
Parent company financial statements
Note 20
Prepaid Expenses and Unearned Revenue
Prepaid expenses are mainly made of IT services paid in
advance. Prepaid expenses amount to €156.1 million in 2023
from €122.8 million in 2022.
is composed primarily of deferred
Unearned revenue
software, subscription and support revenue relating to
periods subsequent to 2023. Unearned revenue amounts to
€164.9 million in 2023 compared to €122.3 million in 2022.
Note 21
Financial Commitments
Financial Instruments
The fair value of instruments used to manage currency and interest rate exposure is as follows:
(in millions of euros)
Forward exchange contract JPY/EUR – sale (1)
Forward exchange contract GBP/EUR – sale (1)
Forward exchange contract CNH/EUR – sale (1)
Other instruments (2)
Year ended December 31,
2023
Nominal
amount
161.6
74.6
63.1
‑
Fair value
1.6
(0.4)
(0.7)
‑
2022
Nominal
amount
120.6
45.4
31.6
5.1
Fair value
3.6
0.8
(0.5)
‑
Instruments (hedge accounting) entered into by the Company to hedge the foreign currency exchange risk of forecasted royalty flows.
(1)
(2) Mainly derivatives designated as isolated open position.
At the end of 2023, foreign exchange contracts mentioned above have maturity dates of less than one year.
Increases and Reductions in Future Income Tax Payable
Increases and reductions in future income tax payable are evaluated on the basis of the standard corporate tax rate, plus social
security contribution on profits.
(in millions of euros)
Nature of temporary differences
SHORT TERM (25,83% TAX RATE FOR 2023 AND 2022)
Provision for employee profit‑sharing
Depreciation of receivables
Other
LONG TERM (25,83% TAX RATE FOR 2023 AND 2022)
Provision for post‑employment benefits
Other
TOTAL TEMPORARY DIFFERENCES
Net reduction of the future corporate tax debt
25,83% short term tax rate for 2023 and 2022
25,83% long term tax rate for 2023 and 2022
Year ended December 31,
2023
2022
70.6
37.5
6.5
26.5
44.5
40.9
3.6
115.1
18.2
11.5
72.8
57.9
11.5
3.3
51.0
45.8
5.2
123.8
18.8
13.2
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Note 22
Other Commitments and Contingencies
Leases
Leases commitments for building locations with area exceeding 2,500 square meters are as follows:
(in millions of euros)
Total leases commitments
Year ended December 31, 2023
Less than
1 year
1 to
5 years
More than
5 years
Total
26.8
147.3
175.5
349.7
In December 2019, the Company signed a lease agreement
for an additional building for its Vélizy‑Villacoublay campus,
for a fixed term of 10 years, starting from its delivery on
May 15, 2023.
In November 2022, the Company signed a new lease
agreement for an office building in Paris, for a fixed term of
12 years, starting from November 10, 2023.
Minimum future lease payments of the aforementioned
contracts are included in the figures above.
Litigation and other proceedings
The Company is involved in litigation and other proceedings,
such as civil, commercial and tax proceedings, incidental to
normal operations.
It is not possible to determine with certainty the outcome
of the dispute and notably the resulting expense for the
Company, if any.
However, in the opinion of management, after consultation
with its lawyers and advisers, the resolution of such
litigation and proceedings should not have a material effect
on the financial statements of the Company.
Guarantee pledged
The Group has a central cash management operated through
a banking institution. In this context, the Company offered
a guarantee to the bank in an amount of $500.0 million.
All commitments of the bank are guaranteed by its parent
company.
The Company provides guarantees in the framework of
contracts between subsidiaries and third parties for a total
amount of €17.8 million at December 31, 2023.
Moreover, the Company provides letters of intent for its
subsidiaries Dassault Systemes UK Limited, Dassault Systèmes
(Switzerland) SA, Dassault Systèmes Australia Pty Ltd and
Dassault Systèmes Deutschland GmbH for respectively a
maximum amount of GBP 150.0 million, CHF 1.6 million, AUD
150.0 million and EUR 70.0 million. These letters of intent
expire respectively on September 19, 2023, December 31,
2025, November 23, 2024 and October 20, 2033.
Note 23
Additional Information
Identity of the Consolidating Company
Post‑closing events
is
in the
Dassault Systèmes SE’s business
consolidated financial statements of Groupe
Industriel
Marcel Dassault SAS, whose registered office is located
at 9, Rond‑Point des Champs‑Élysées – Marcel Dassault,
75008 Paris, France, and which belongs to the Dassault
family.
included
On January 3, 2024, Dassault Data Services was merged into
Dassault Systèmes SE.
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Note 24
Information Relating to Subsidiaries and Shareholdings
DASSAULT SYSTEMES CORP HOLDING
DASSAULT SYSTEMES INTERNATIONAL SAS
DASSAULT SYSTEMES DEUTSCHLAND GMBH
DASSAULT SYSTEMES UK LIMITED
DASSAULT SYSTEMES CANADA INC
DASSAULT SYSTEMES SOLUTIONS LAB PRIVATE LIMITED
DASSAULT SYSTEMES KK
DASSAULT SYSTEMES PROVENCE SAS
DASSAULT SYSTEMES AB
DASSAULT SYSTEMES ISRAEL LIMITED
DASSAULT SYSTEMES SWITZERLAND SA
DASSAULT SYSTEMES ESPANA SLU
DASSAULT SYSTEMES INDIA PRIVATE LIMITED
TRUST MANAGEMENT ADVISORS ‑STRATORG SAS
DASSAULT DATA SERVICES SAS
DASSAULT SYSTEMES ITALIA SRL
Sub‑total of the net value of shares for which gross values exceed 1% of capital
Total of the net value of shares
Gross value of shares
Loans and advances
Guarantees provided*
*
Refer to Note 22 Other Commitments and Contingencies.
Net value
of shares
(in million
of euros)
Dividend
received
in 2023
(in million
of euros)
% of
capital held
479.0
‑
‑
‑
‑
‑
19.3
31.5
2.6
1.3
1.0
‑
‑
‑
‑
‑
534.6
100%
100%
100%
100%
100%
67%
100%
100%
100%
100%
100%
100%
100%
51%
100%
100%
5,506.1
749.4
399.4
93.4
90.1
69.7
43.7
32.2
16.9
12.1
9.7
9.0
8.8
3.5
2.5
1.9
7,048.5
7,049.5
7,142.9
13.5
805.6
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Parent company financial statements
4.2.2
Selected financial and other information
for Dassault Systèmes SE over the last five years
2019
2020
2021
2022
2023
Share capital
Share Capital (in millions of euros)
Number of shares authorized and issued (1)
132.0
264,038,001
132.6
133.8
265,136,237 1,332,716,653 1,335,039,708 1,337,916,433
133.3
133.5
Statement of income data (in millions of euros)
Revenue
Result before income tax, profit sharing,
amortization and provisions
Result before income tax, profit sharing,
amortization and provisions and reversals
of provisions
Income tax
Regulated employee profit‑sharing
Optional employee profit‑sharing
Net income
Data per share (2) (in euros)
Result after income tax and profit sharing
and before amortization and provisions
Basic net income per share
Dividend per share
Personnel
Average headcount (3)
Personnel costs (in millions of euros)
Social security contributions (in millions of euros)
1,727.0
1,716.4
1,839.8
2,135.9
2,301.2
789.4
674.3
790.8
1,198.0
1,214.6
695.8
40.6
29.5
29.0
279.6
2.26
1.06
0.70
3,595
354.3
173.0
537.5
54.0
28.1
28.1
412.9
1.61
1.56
0.56
3,706
355.3
167.2
612.2
33.6
33.1
32.9
431.3
0.38
0.32
0.17
3,811
377.6
194.2
1,050.5
132.9
56.8
22.6
781.9
0.63
0.59
0.21
4,026
439.9
166.5
1,104.7
51.7
37.9
37.1
861.2
0.73
0.64
0.23(2)
4,340
449.2
218.6
(1) After the five‑for‑one share split on Dassault Systèmes’ share.
(2) To be proposed for approval at the General Meeting scheduled for May 22, 2024.
(3) Apprentices and professional training contractors are excluded.
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4.2.3
Statutory Auditors’ Report on the parent
company financial statements
This is a free translation into English of the Statutory Auditors’ report issued in French and is provided solely for the
convenience of English speaking readers. This report includes information specifically required by European regulations or
French law, such as information about the appointment of Statutory Auditors. This report should be read in conjunction with,
and construed in accordance with, French law and professional auditing standards applicable in France.
To the Shareholders,
Opinion
In compliance with the engagement entrusted to us by your Shareholders’ Meetings, we have audited the accompanying
financial statements of Dassault Systèmes SE for the year ended December 31, 2023.
In our opinion, the financial statements give a true and fair view of the assets and liabilities and of the financial position of
the Company at December 31, 2023 and of the results of its operations for the year then ended in accordance with French
accounting principles.
The audit opinion expressed above is consistent with our report to the Audit Committee.
Basis for opinion
Audit framework
We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Our responsibilities under these standards are further described in the “Responsibilities of the Statutory Auditors relating to
the audit of the financial statements” section of our report.
Independence
We conducted our audit engagement in compliance with the independence rules provided for in the French Commercial Code
(Code de commerce) and the French Code of Ethics (Code de déontologie) for Statutory Auditors for the period from January 1,
2023 to the date of our report, and, in particular, we did not provide any non‑audit services prohibited by Article 5 (1) of
Regulation (EU) No. 537/2014.
Justification of assessments – Key audit matters
In accordance with the requirements of Articles L. 821‑53 and R. 821‑180 of the French Commercial Code relating to the
justification of our assessments, we inform you of the key audit matters relating to the risks of material misstatement that,
in our professional judgment, were the most significant in our audit of the financial statements, as well as how we addressed
those risks.
These matters were addressed as part of our audit of the financial statements as a whole, and therefore contributed to the
opinion we formed as expressed above. We do not provide a separate opinion on specific items of the financial statements.
Recognition of revenue from contractual arrangements with multiple performance obligations
Description of risk
The Company’s revenue is derived from multiple sources, chief among them licenses, subscriptions, support and services, and
is recognized in accordance with the methods described in the section entitled “Revenue” of Note 2 “Summary of Significant
Accounting Policies” to the financial statements.
Where contractual arrangements include multiple goods or services sold as a single package, determining the separate
performance obligations as well as the allocation of the transaction price and how revenue should be allocated between the
various performance obligations can be difficult and can require a significant degree of judgment from management:
— the revenue for each element of these contractual arrangements including multiple performance obligations is allocated
to each distinct performance obligation based on their stand‑alone selling price. Allocating revenue between the various
performance obligations requires analyses by management and, potentially, adjustments, both of which can be complex;
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Parent company financial statements
— in addition, when a software license sale is combined with a service deemed essential to the functionality of the software,
the two performance obligations (software and service) are not distinct. Therefore, the license revenue is recognized as
and when the service obligation is recognized. Determining whether or not a service is essential to the functionality of a
product requires significant judgment from management, as does analyzing the potential future profits to be gained from
the corresponding long‑term contract;
— moreover, recognizing revenue from these arrangements typically requires an in‑depth analysis of contractual terms with
a view to ascertaining the full scope and nature of the goods or services the Company has committed to providing.
For the above reasons, we deemed the recognition of revenue from contractual arrangements with multiple performance
obligations to be a key audit matter.
How our audit addressed this risk
As part of our audit, we gained an understanding of internal control systems relating to the recognition of revenue that
were implemented by the Company and tested the design and implementation of controls relating to these systems that we
considered to be the most relevant.
Our approach also took into account the information systems used in recognizing revenue, by testing, with the assistance of
our IT specialists, the effectiveness of the automatic controls for systems impacting revenue recognition.
In addition, we reviewed the contractual arrangements with multiple performance obligations that were considered significant
and other randomly selected contracts to assess whether management’s judgments regarding the determination of the
various performance obligations, the allocation of the transaction price to the individual performance obligations, and the
method of revenue recognition for each distinct performance obligation were consistent with the accounting policies applied
by the Company. Our work consisted primarily in reviewing the contractual terms and conditions, analyzing the essentiality
criteria for services associated with software sales, re‑calculating the stand‑alone selling price of each element tested, and
verifying the consistency of revenue recognition with the Company’s accounting policies and French accounting principles.
We also analyzed the consistency of all significant manual accounting entries affecting revenue from these contracts with the
Company’s accounting policies.
Lastly, we analyzed the appropriateness of the related disclosures provided in Note 2 “Summary of Significant Accounting
Policies” and Note 3 “Operating revenue” to the financial statements.
Valuation of investments in subsidiaries and loans and advances to subsidiaries
Description of risk
As described in Note 12 «Non‑current Financial Assets» to the financial statements, investments, advances and loans
amounted to €7,049.6 million and €13.5 million respectively at December 31, 2023, therefore representing some of the
largest assets on the balance sheet. Investments in subsidiaries are carried at cost and may be impaired, as applicable, based
on their values in use.
As indicated in the section entitled “Non‑current Financial Assets” of Note 2 “Summary of Significant Accounting Policies”
to the financial statements, the calculation of value in use takes into account the share of equity in the relevant subsidiaries
at the reporting date, together with their long‑term profitability and strategic factors. Estimating the net realizable value
therefore requires management to exercise judgment, relying on stock market ratios’ comparables and forecasts to define the
profitability outlook.
Accordingly, due to the inherent uncertainty of certain components of the valuation, in particular the likelihood of achieving
projections, we deemed the valuation of investments in loans and advances to subsidiaries to be a key audit matter.
How our audit addressed this risk
In order to assess the estimated values in use of investments in loans and advances to subsidiaries, based on the information
provided to us, our audit work consisted primarily in analyzing the estimated values in use determined by management in
relation to the valuation method and underlying data:
— for valuations based on historical data, we ensured that the equity values used were consistent with the financial
statements of the entities concerned;
— for valuations based on forecast data, we obtained management’s analyses on the profitability outlook and the strategic
nature of these entities;
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Parent company financial statements
— for valuations based on stock market ratio’s comparables, we ensured that the comparable ratios used were consistent
with the market information of the related groups and that the comparable used by management were relevant.
With the assistance of our valuation experts, we assessed the consistency of the assumptions used with the economic
environment at the reporting date and at the date on which the financial statements were prepared.
Where the value in use was lower than the acquisition value of an investment, we assessed whether an appropriate impairment
loss had been recorded and, where appropriate, whether a provision for contingencies had been recognized with respect to
the subsidiary in question and to any advances or loans.
Lastly, we analyzed the appropriateness of the disclosures provided in Note 2 “Summary of Significant Accounting Policies”,
Note 12 “Non‑current Financial Assets” and Note 24 “Information Relating to Subsidiaries and Shareholdings” to the financial
statements.
Specific verifications
In accordance with professional standards applicable in France, we have also performed the specific verifications required by
French legal and regulatory provisions.
Information given in the management report and in the other documents provided
to the shareholders with respect to the Company’s financial position and the financial statements
We have no matters to report as to the fair presentation and the consistency with the financial statements of the information
given in Board of Directors’ management report and in the other documents provided to the shareholders with respect to the
Company’s financial position and the financial statements.
We attest to the fair presentation and the consistency with the financial statements of the information about payment terms
referred to in Article D. 441‑6 of the French Commercial Code.
Report on corporate governance
We attest that the Board of Directors’ report on corporate governance sets out the information required by Articles
L. 225‑37‑4, L. 22‑10‑10 and L. 22‑10‑9 of the French Commercial Code.
Concerning the information given in accordance with the requirements of Article L. 22‑10‑9 of the French Commercial Code
relating to compensation and benefits paid or awarded to corporate officers and any other commitments made in their favor,
we have verified its consistency with the financial statements or with the underlying information used to prepare these
financial statements, and, where applicable, with the information obtained by the Company from controlled companies within
its scope of consolidation. Based on this work, we attest to the accuracy and fair presentation of this information.
Concerning the information given in accordance with the requirements of Article L. 22‑10‑11 of the French Commercial Code
relating to those items the Company has deemed liable to have an impact in the event of a takeover bid or exchange offer,
we have verified its consistency with the underlying documents that were disclosed to us. Based on this work, we have no
matters to report with regard to this information.
Other information
In accordance with French law, we have verified that the required information concerning the purchase of investments and
controlling interests and the identity of the shareholders and holders of the voting rights has been properly disclosed in the
management report.
Other verifications and information pursuant to legal and regulatory requirements
Presentation of the financial statements to be included in the annual financial report
In accordance with professional standards applicable to the Statutory Auditors’ procedures for annual and consolidated
financial statements presented according to the European single electronic reporting format, we have verified that the
presentation of the financial statements to be included in the annual financial report referred to in paragraph I of Article
L. 451‑1‑2 of the French Monetary and Financial Code (Code monétaire et financier) and prepared under the Chief Executive
Officer’s responsibility, complies with this format, as defined by European Delegated Regulation No. 2019/815 of
December 17, 2018.
On the basis of our work, we conclude that the presentation of the financial statements to be included in the annual financial
report complies, in all material respects, with the European single electronic reporting format.
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It is not our responsibility to ensure that the financial statements to be included by the Company in the annual financial report
filed with the AMF correspond to those on which we carried out our work.
Appointment of the Statutory Auditors
We were appointed Statutory Auditors of Dassault Systèmes S.E. by the General Meeting of Shareholders held on June 8,
2005 for PricewaterhouseCoopers Audit and on May 19, 2022 for KPMG.
At December 31, 2023, PricewaterhouseCoopers Audit and KPMG S.A. were in the nineteenth and the second consecutive
year of their engagement, respectively.
Responsibilities of management and those charged with governance for the financial statements
Management is responsible for preparing financial statements giving a true and fair view in accordance with French accounting
principles, and for implementing the internal control procedures it deems necessary for the preparation of financial statements
that are free of material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting, unless it
expects to liquidate the Company or to cease operations.
The Audit Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control
and risk management systems, as well as, where applicable, any internal audit systems, relating to accounting and financial
reporting procedures.
The financial statements were approved by the Board of Directors.
Responsibilities of the Statutory Auditors relating to the audit of the financial statements
Objective and audit approach
Our role is to issue a report on the financial statements. Our objective is to obtain reasonable assurance about whether the
financial statements as a whole are free of material misstatement. Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions taken by users on the basis of these financial statements.
As specified in Article L. 821‑55 of the French Commercial Code, our audit does not include assurance on the viability or quality
of the Company’s management.
As part of an audit conducted in accordance with professional standards applicable in France, the Statutory Auditors exercise
professional judgment throughout the audit. They also:
— identify and assess the risks of material misstatement in the financial statements, whether due to fraud or error, design
and perform audit procedures in response to those risks, and obtain audit evidence considered to be sufficient and
appropriate to provide a basis for their opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control;
— obtain an understanding of the internal control procedures relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal
control;
— evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management and the related disclosures in the notes to the financial statements;
— assess the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Company’s ability to continue as a going concern. This assessment is based on the audit evidence obtained up to
the date of the audit report. However, future events or conditions may cause the Company to cease to continue as a going
concern. If the Statutory Auditors conclude that a material uncertainty exists, they are required to draw attention in the
audit report to the related disclosures in the financial statements or, if such disclosures are not provided or are inadequate,
to issue a qualified opinion or a disclaimer of opinion;
— evaluate the overall presentation of the financial statements and assess whether these statements represent the
underlying transactions and events in a manner that achieves fair presentation.
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Report to the Audit Committee
We submit a report to the Audit Committee which includes, in particular, a description of the scope of the audit and the audit
program implemented, as well as the results of our audit. We also report any significant deficiencies in internal control that we
have identified regarding the accounting and financial reporting procedures.
Our report to the Audit Committee includes the risks of material misstatement that, in our professional judgment, were the
most significant for the audit of the financial statements and which constitute the key audit matters that we are required to
describe in this report.
We also provide the Audit Committee with the declaration provided for in Article 6 of Regulation (EU) No. 537/2014, confirming
our independence within the meaning of the rules applicable in France, as defined in particular in Articles L. 821‑27 to
L. 821‑34of the French Commercial Code and in the French Code of Ethics for Statutory Auditors. Where appropriate, we
discuss any risks to our independence and the related safeguard measures with the Audit Committee.
Neuilly‑sur‑Seine and Paris La Défense, March 13, 2024
The Statutory Auditors
PricewaterhouseCoopers Audit
KPMG S.A
Richard Béjot
Partner
Jacques Pierre
Partner
Xavier Niffle
Partner
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4.2.4
Statutory Auditors’ Special Report
on Related Party Agreements
This is a free translation into English of the Statutory Auditors’ special report on related‑party agreements issued in French
and is provided solely for the convenience of English speaking readers. This report should be read in conjunction with, and
construed in accordance with, French law and professional auditing standards applicable in France.
To the Shareholders,
In our capacity as Statutory Auditors of Dassault Systèmes SE, we hereby report to you on related‑party agreements.
It is our responsibility to report to shareholders, based on the information provided to us, on the main terms and conditions of
agreements that have been disclosed to us or that we may have identified as part of our engagement, as well as the reasons
given as to why they are beneficial for the Company, without commenting on their relevance or substance or identifying any
undisclosed agreements. Under the provisions of Article R. 225‑31 of the French Commercial Code (Code de commerce), it is
the responsibility of the shareholders to determine whether the agreements are appropriate and should be approved.
Where applicable, it is also our responsibility to provide shareholders with the information required by Article R. 225‑31 of
the French Commercial Code in relation to the implementation during the year of agreements already approved by the Annual
General Meeting.
We performed the procedures that we deemed necessary in accordance with professional standards applicable in France to
such engagements. These procedures consisted in verifying that the information given to us is consistent with the underlying
documents.
Agreements submitted for the approval of the Annual General Meeting
Agreements authorized and entered into during the year
We were not informed of any agreements authorized and entered into during the year to be submitted for the approval of the
Annual General Meeting pursuant to the provisions of Article L. 225‑38 of the French Commercial Code.
Agreements already approved by the Annual General Meeting
Agreements approved in previous years that were not implemented during the year
We were informed of the following agreements approved by the Annual General Meeting in previous years, which remained in
force but were not implemented during the year.
With the Company’s Board members, in connection with the insurance
policy “Civil liability of Directors and Corporate Officers”
Advance payment to Board members of any legal fees incurred in proceedings instituted against them in the exercise of their
corporate office.
At its meeting on June 28, 1996, the Board of Directors authorized the advance payment by the Company of any legal fees
and financial consequences that the Board members could incur if their personal liability is sought, in the event that the
insurance policy signed with the insurance company does not cover these advances and financial consequences.
Payment of legal fees of Board members for any proceedings instituted in the United States.
At its meeting on September 23, 2003, the Board of Directors authorized the payment by the Company of any fees and travel
expenses that the Board members of the Company and its subsidiaries have to pay to prepare their personal defense before a
civil, criminal or administrative Court in the United States within the scope of an inquiry or investigations carried out against
the Company.
Paris La Défense and Neuilly‑sur‑Seine, March 13, 2024
The Statutory Auditors
KPMG S.A
PricewaterhouseCoopers Audit
Jacques Pierre
Partner
Xavier Niffle
Partner
Richard Béjot
Partner
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4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Financial statements
Legal and Arbitration Proceedings
4.3
Legal and Arbitration Proceedings
involved
is occasionally
In the context of its ordinary course of business, Dassault
Systèmes
in disputes or tax
audits and occasionally receives requests from regulatory
authorities. In particular, Dassault Systèmes may be subject
to tax audits and reassessments by the tax authorities of the
countries in which it exercises or has exercised a business
activity. Certain tax reassessments have been contested
by Dassault Systèmes and give rise to exchanges with the
relevant tax authorities. To Dassault Systèmes’ knowledge,
there are no governmental, legal or arbitration proceedings
(including any proceedings of which Dassault Systèmes is
aware, whether pending or threatened), that are liable to
have, or have had over the 12 months immediately prior
to the publication of this Universal registration document,
any material impact on the Company’s financial position or
profitability.
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Legal and Arbitration Proceedings
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4DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
5
5
Corporate Governance
GOVERNANCE 5
CORPORATE
5.1
5.1.1
5.1.2
5.1.3
5.1.4
5.1.5
5.1.6
5.1.7
5.2
5.2.1
5.2.2
5.2.3
5.2.4
5.2.5
5.2.6
5.3
5.4
5.5
The Board’s Corporate Governance Report
Composition and Practices of the Board of Directors
Executives of Dassault Systèmes
Compensation Policy for Corporate Officers (Mandataires Sociaux)
Summary of the Compensation and Benefits due to Corporate Officers
(Mandataires Sociaux)
Interests of Executive Management and Employees in the Share Capital of
Dassault Systèmes SE
Application of the AFEP‑MEDEF Code
Other Information Required by Articles L. 225‑37 and L. 22‑10‑8 et seq. of
the French Commercial Code
Enterprise risk management and internal control procedures
Definitions and Objectives of Enterprise Risk Management and Internal Control
Participants and Organization
Procedures
Internal Control Procedures Relating to the Preparation and Treatment of
Financial and Accounting Information
Internal Control Assessment
Internal Control Limitations
Summary of Share Transactions by Dassault Systèmes Executives
Information About the Statutory Auditors
268
269
293
294
301
316
324
324
329
329
329
332
333
334
334
335
338
Declarations Regarding the Administrative and Management Bodies
338
5
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Corporate Governance
The Board’s Corporate Governance Report
5.1
The Board’s Corporate Governance Report
Report of the Board of Directors to the Combined General Meeting of May 22, 2024
To the Shareholders of Dassault Systèmes,
Shareholder dialog
The purpose of this report is to describe inter alia the
composition and practices of the Board of Directors of
Dassault Systèmes SE, the application thereto of the
principle of balanced representation of men and women
and the policy and details of the compensation of corporate
officers.
This report was drawn up in accordance with the French
Commercial Code and the regulations of the French Financial
Markets Authority (AMF), based on work carried out by
the Finance, Legal and Internal Audit teams of Dassault
Systèmes. It was reviewed by the Audit Committee and
approved by the Board of Directors on March 12, 2024.
Since its IPO in 1996, Dassault Systèmes has complied with
the best international standards of corporate governance.
Dassault Systèmes currently adheres to most of the
recommendations of the AFEP‑MEDEF Code (available on
the MEDEF website: www.medef.com) and
therefore
summarizes in a table the reasons why it does not apply
certain of these recommendations (see paragraph 5.1.6
“Application of the AFEP‑MEDEF Code”).
Dassault Systèmes is committed to meeting the expectations
and concerns of its shareholders. Meetings were held in 2023
between management team representatives and investors
and proxy advisors so that they could discuss their points
of concern such as certain General Meeting resolutions or
ESG (environmental, social and governance) matters. These
meetings also gave the management team the opportunity
to present the changes to governance taking effect on
January 1, 2024.
Dassault Systèmes has taken into account the comments
received, notably by amending this Universal registration
document, including the corporate governance report (in
particular the compensation policy for executive officers),
and the chapter covering social, societal and environmental
responsibility. Dassault Systèmes has also amended the
resolutions proposed to the General Meeting of Shareholders.
For example, the resolutions relating to performance share
allocation now specify in greater detail the performance
criteria previously defined by the Board of Directors and set a
longer vesting period.
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5
5.1.1
Composition and Practices of the Board of Directors
5.1.1.1
Composition of the Board of Directors
A percentage of women above
the 40% threshold required by law
As of the date of this Universal registration document, the
Board of Directors of Dassault Systèmes SE comprises
12 members whose term of office is four renewable years:
— Bernard Charlès (Executive Chairman of the Board of
Directors);
— Charles Edelstenne (Honorary Chairman);
— Pascal Daloz (Chief Executive Officer);
— Geneviève Berger
(lead director of
sustainable
development);
— Xavier Cauchois;
— Catherine Dassault;
— Laurence Daures (lead independent director);
— Odile Desforges;
— Soumitra Dutta;
— Marie‑Hélène Habert‑Dassault;
— Hervé Andorre (director representing employees) (1);
— Tanneguy de Fromont de Bouaille (director representing
employees) (1).
The average age of the directors is 64.
In the composition of the Board of Directors, Dassault
Systèmes seeks a balance between experienced and new
directors, between
independent and non‑independent
directors, between women and men, as well as a diversity of
skills, profiles and nationalities. Dassault Systèmes monitors
the evolution of the composition of the Board by making
projections based on all of these criteria, which has led to
greater diversity within the Board in recent years.
In terms of internationalization, the Board has one non‑
French director (Indian) who is also a UK resident and one
director who is a Swiss resident, representing 17% of the
Board.
Application of the internationalization criterion contributed
to proposing the appointment of Ms. Geneviève Berger to
replace Ms. Toshiko Mori, whose term of office expired on
May 24, 2023 and who, after three terms of office of four
years each, could no longer be considered independent within
the meaning of the AFEP‑MEDEF Code. Ms. Geneviève Berger
was Chief Research Officer at Unilever, an international group
headquartered in the United Kingdom and the Netherlands
and whose shares are listed on Euronext, the London Stock
Exchange, and the New York Stock Exchange. She also held
management positions at Swiss company Firmenich, a global
leader in the perfume and flavor sector. Lastly, she spent
almost 10 years as a director of AstraZeneca, a multinational
company headquartered in the United Kingdom and listed on
the London Stock Exchange, Stockholm Stock Exchange, and
NASDAQ. Ms. Berger is a resident of Switzerland.
Dassault Systèmes SE is committed to ensuring a significant
representation of women on the Board. With 50% of its
directors being women (2), Dassault Systèmes SE is above the
40% threshold required by law. This percentage has been
maintained since 2019.
Dassault Systèmes’ objective is to maintain a proportion of
female representation on the Board of 50% (3). Application of
this criterion thus contributed to the nomination in 2023 of
Ms. Geneviève Berger to replace Ms. Toshiko Mori.
Skills in line with Dassault Systèmes’ strategy
The directors of Dassault Systèmes SE have a complementary
set of skills and experience that line up with the Company’s
strategy, and enable it to respond to the challenges it faces.
Among the five independent directors, three have industry
expertise (the manufacturing industry, life sciences, and
new technologies) and two have accounting and financial
expertise. The non‑independent directors provide the Board
with extensive knowledge of the Company and its industry
and businesses.
is updating the composition of
its
Dassault Systèmes
Board of Directors in line with the development of its
business activities. With the acquisition of Medidata in
2019 significantly boosting Dassault Systèmes’ presence in
the Life Sciences & Healthcare sector, priority was given to
someone with expertise in innovation, research, physics, and
human biology, as well as a good knowledge of engineering
companies, to replace Ms. Toshiko Mori in 2023.
ESG at the highest level of Dassault
Systèmes’ corporate governance
As social, societal and environmental responsibility (CSR)
is a core element of Dassault Systèmes’ strategy and
achievements, the governance system put in place aims to
ensure that social and environmental issues are better taken
into account within the Company and within the Board of
Directors.
Ms. Toshiko Mori – architect and independent director
until May 24, 2023 – was the lead director of sustainable
development matters on the Board of Directors since the
beginning of 2020. Ms. Toshiko Mori’s term of office has
expired, and after three terms of office of four years each,
she can no
independent within
the meaning of the AFEP‑MEDEF Code. It was therefore
proposed to the General Meeting on May 24, 2023, that she
be replaced by Ms. Geneviève Berger.
longer be considered
(1) The two directors representing employees were appointed, in accordance with Dassault Systèmes SE’s by‑laws, by the two trade unions that obtained the highest
number of votes in the first round of the elections for members of the Social and Economic Committee for Dassault Systèmes SE and its direct or indirect subsidiaries
whose registered offices are located on the French territory.
(2) Excluding directors representing employees, not accounted for in accordance with the law.
(3) Excluding directors representing employees.
5
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Ms. Geneviève Berger, who is a doctor in medicine, a
physicist and who holds a PhD in human biology, led the
French National Center for Scientific Research (CNRS) from
2000 to 2003 before spending several years as head of
research for Unilever and Firmenich. From 2015 to 2023,
she was a director and a member of the Environment and
Society Committee at Air Liquide, after spending nine years
at AstraZeneca as an independent director responsible
for sustainable development matters and a member of
the Scientific Committee. She is also a member of the
Supervisory Board of Institut Curie. Ms. Geneviève Berger
thus has considerable expertise in the area of ESG and, more
generally, in the scientific field.
Ms. Geneviève Berger was appointed lead director for
sustainable development on May 24, 2023.
A percentage of independent directors greater than
the recommendations of the AFEP‑MEDEF Code
The proportion of independent directors within the Board of
Directors of Dassault Systèmes SE is 50% (1), above the ratio
of one third recommended by the AFEP‑MEDEF Code for
controlled companies.
To assess such independence, Dassault Systèmes SE bases
its decision on the definition of the AFEP‑MEDEF Code,
which has been incorporated into the internal regulation of
the Board of Directors, whereby a director is independent
when he or she has no relationship whatsoever with Dassault
Systèmes SE, the Company or its management team, which
might compromise his or her free judgment.
At its meeting on March 12, 2024, the Board of Directors
assessed, as it does every year, the independence of
its members, after a review by the Compensation and
Nomination Committee. The Board of Directors thus
determined that five directors are independent: Ms. Berger,
Ms. Daures and Ms. Desforges as well as Mr. Cauchois
and Mr. Dutta. This decision by the Board is based on the
answers from the directors to a dedicated questionnaire and
the information available to Dassault Systèmes SE.
In particular, the Board of Directors has also assessed the
independence of Ms. Laurence Daures, whose term of office
as director is due to expire and whose renewal is proposed to
the General Meeting of May 22, 2024. As each of the eight
independence criteria set out in the AFEP‑MEDEF Code was
met in her case (see the table below), the Board concluded
that she is independent.
As none of the independent directors have a business
relationship with Dassault Systèmes, the Board of Directors
did not have to express an opinion, as to this day, either on
the materiality of any such relationship or on the criteria
used to assess it.
Dassault Systèmes’ objective is to maintain the proportion
of independent directors on the Board at 50% (2). Application
of this criterion thus resulted in a proposal to appoint
Ms. Geneviève Berger to replace Ms. Toshiko Mori, whose
term of office expired on May 24, 2023 and who, after
three terms of office of four years each, could no longer be
considered independent within the meaning of the AFEP‑
MEDEF Code.
(1) Excluding directors representing employees, not accounted for in accordance with the AFEP‑MEDEF Code.
(2) Excluding directors representing employees.
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The table below shows the situation of each director with respect to the independence criteria set out in the AFEP‑MEDEF
Code (see page 38 of the Code):
Criteria
Criterion 1:
Corporate officer
during the previous
five years
Criterion 2:
Cross‑directorships
Criterion 3:
Significant business
relations
Criterion 4:
Family relationship
Criterion 5:
Auditor
Criterion 6:
Terms of office
exceeding 12 years
Criterion 7:
Status of non‑executive
officer
Criterion 8:
Status of major
shareholder
Charles
Edelstenne
Bernard
Charlès
Pascal
Daloz
Geneviève
Berger
Xavier
Cauchois
Catherine
Dassault
Laurence
Daures
Odile
Desforges
Soumitra
Dutta
Marie‑Hélène
Habert‑
Dassault
X
X
X
X
X
X
X
X
X
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
5
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Appointment of a lead director
among the independent directors
In the interest of a balance of power related to the combining
of the functions of Chief Executive Officer and Chairman of
the Board of Directors, the Board of Directors, at its meeting
of March 15, 2022, decided to appoint a lead independent
director, from among the independent directors, whose
specific remits are described below:
— to chair the annual meeting of independent directors and
report back to the Board of Directors;
— to call for an ad hoc session of independent directors
when a key strategic decision is submitted to the Board
(acquisition of a company of a significant size, etc.);
— to submit recommendations regarding the practices of
the Board to the Chairman and the Secretary of the Board
of Directors;
— to oversee the formal review of the Board of Directors
carried out by the Secretary of the Board;
— to prevent and manage situations, or potential situations,
of conflict of interest brought to his or her attention,
and inform the Board of Directors thereof, including
by reviewing any new directorships envisaged by the
directors.
To fulfill his or her remit, the lead independent director:
— shall have access to any documents or information that
he or she judges necessary, in particular the work carried
out by the committees;
— may request assistance from the Secretary of the Board
of Directors.
The lead independent director must report annually to the
Board of Directors.
The table below presents the composition of the Board
of Directors of Dassault Systèmes SE at the date of this
Universal registration document.
Composition of the Board of Directors of Dassault Systèmes SE*
PERSONAL INFORMATION EXPERIENCE
POSITION ON THE BOARD
Age
Gender
Nationality Number of shares
Number
of terms of
office in listed
companies (1)
Indepen‑
dence
Initial date
of appointment Term expires
Length
of service
on the Board
PARTICIPA‑
TION
IN BOARD
COMMITTEES
DIRECTORS
EXECUTIVE OFFICERS
Bernard Charlès
Pascal Daloz
DIRECTORS
Charles Edelstenne
Geneviève Berger
Xavier Cauchois
Catherine Dassault
Laurence Daures
Odile Desforges
Soumitra Dutta
Marie‑Hélène Habert‑Dassault
DIRECTORS REPRESENTING
EMPLOYEES
66 M
55 M
France
France
25,202,205
3,174,295
86 M
69
F
66 M
F
56
F
50
74
F
60 M
F
58
France
France
France
France
France
France
India
France
79,871,475
0
1,500
183,280
1,505
2,100
500
2,830
Hervé Andorre
58 M
Tanneguy de Fromont de Bouaille 69 M
France
France
53,800
63,535
0
1
3
1
1
0
0
1
0
3
0
0
04/08/1993
07/22/2020
2026 31 years
2026 ≤ 4 years
04/08/1993
X 05/24/2023
X 05/22/2018
07/20/2016
X 05/26/2016
X 05/30/2013
X 05/23/2017
07/23/2014
2026 31 years
2027 < 1 year
6 years
2026
8 years
2027
2024 (2) 8 years
2025 11 years
2025
7 years
2024 10 years
X
X
X
X
X
05/18/2020
06/24/2016
2024(3) ≤ 4 years
2024(3)
8 years
As of the date of this Universal registration document.
*
(1) Number excluding the term of office held within Dassault Systèmes SE.
(2) Renewals proposed for approval at the General Meeting scheduled for May 22, 2024.
(3) Between the date of the Universal Registration Document and the date of the General Meeting of Shareholders, new elections to the Social and Economic Committee of
Dassault Systèmes SE will take place, which may lead the two trade unions with the highest number of votes to appoint new directors representing the employees.
The roles and duties performed by the corporate officers of Dassault Systèmes SE are stated in the table below.
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Bernard Charlès – Executive Chairman of the Board of Directors
Age: 66
Nationality: French
Business address:
Dassault Systèmes –
10 rue Marcel‑Dassault,
78140 Vélizy‑Villacoublay –
France
Main position:
Executive Chairman
of the Board of Directors
of Dassault Systèmes
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2025
Date of first appointment:
04/08/1993
Number of Dassault
Systèmes shares owned
at December 31, 2023:
25,202,205
Attendance rate
at 2023 Board meetings:
100%
Biography
Bernard Charlès has been Executive Chairman of the Board of Directors of Dassault
Systèmes since January 1, 2024, after serving as Chairman & Chief Executive Officer from
January 9, to December 31, 2023. He was Chief Executive Officer from 2002 to early 2023.
Since 1995, Bernard Charlès has had executive functions which he shared with Charles
Edelstenne. Prior to holding this position, Bernard Charlès served as Dassault Systèmes’
Director of the New Technology, Research and Strategy Department from 1986 to 1988
and as Director of Strategy, Research and development from 1988 to 1995.
He was Vice chairman of the Board of Directors from 2016 until January 8, 2023.
Other offices and positions
Within the Dassault Systèmes Group
Chairman of the Board of Directors of Dassault Systèmes Corp., Dassault Systèmes
SolidWorks Corporation and Centric Software, Inc.
Outside the Dassault Systèmes Group
None
Other positions held, and expired, during the past five years
Within the Dassault Systèmes Group, outside France
Chairman of the Board of Directors of Dassault Systèmes Simulia Corp. until 2020 and of
IQMS, LLC until 2019
Outside the Dassault Systèmes Group, in France
Independent Director of Sanofi (listed company) until April 30, 2021
5
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Charles Edelstenne – Founder, honorary Chairman & Director
Age: 86
Nationality: French
Business address:
Groupe Industriel Marcel
Dassault SAS – 9 Rond‑Point
des Champs‑Élysées –
Marcel Dassault, 75008 Paris –
France
Main position:
Chairman of Groupe Industriel
Marcel Dassault SAS (GIMD)
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2025
Date of first appointment:
04/08/1993
Number of Dassault
Systèmes shares owned
at December 31, 2023:
79,871,475 (including a majority
of beneficial ownership shares)
Attendance rate
at 2023 Board meetings:
100%
Biography
Charles Edelstenne is Founder, Honorary Chairman & Director of Dassault Systèmes,
having been Chairman of the Board of Directors until January 8, 2023. He had been
Manager (1981–1993) and then Chairman & Chief Executive Officer (1993–2002) of
Dassault Systèmes, of which he is the founder.
He is also Chairman of Groupe Industriel Marcel Dassault SAS (GIMD).
Charles Edelstenne is also Honorary Chairman and Director of Dassault Aviation after
having occupied the positions of Vice‑President responsible for economic and financial
affairs (1986‑2000), General Secretary (1975‑1986) and Chairman & Chief Executive
Officer (2000‑2013).
He holds a chartered accountant qualification.
Other offices and positions
Within the Dassault Group, in France
Chairman of GIMD; Honorary Chairman and Director of Dassault Aviation S.A. (listed
company); Director of Thalès S.A. (listed company); Chairman of the Board and Chief
Executive Officer of Dassault Médias S.A.; Chairman of Rond‑Point Immobilier SAS;
Chairman of Rond‑Point Holding SASU; Manager of Rond‑Point Investissements EURL;
Manager of SCI Maison Rouge; Chief Executive Officer of Dassault Wine Estates SASU;
Chairman and member of the Board of Directors of Groupe Figaro SAS; Chairman of
Société du Figaro SAS
Within the Dassault Group, outside France
Director of Dassault Falcon Jet Corporation; Chairman and member of the Board of
Dassault Belgique Aviation S.A.
Outside the Dassault Group
Director of Carrefour S.A. (listed company), Honorary Chairman of Gifas (1); Manager of
the Arie, Arie 2, Nili and Nili 2 partnerships
Other positions held, and expired, during the past five years
Director of SABCA (listed company), Director of Banque Lepercq de Neuflize & Co. Inc,
Director of Sogitec Industries S.A., Chairman of the Board of Directors of Dassault
Systèmes SE until January 8, 2023
(1) Groupement des Industries Françaises Aéronautiques et Spatiales.
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Pascal Daloz – Chief Executive Officer
Age: 55
Nationality: French
Business address:
Dassault Systèmes –
10 rue Marcel‑Dassault,
78140 Vélizy‑Villacoublay –
France
Main position:
Chief Executive Officer
of Dassault Systèmes
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2025
Date of provisional
appointment by decision
of the Board of Directors:
07/22/2020
Number of Dassault
Systèmes shares owned
at December 31, 2023:
3,174,295
Attendance rate
at 2023 Board meetings:
100%
Biography
Pascal Daloz has been Chief Executive Officer of Dassault Systèmes since January 1, 2024,
after serving as Deputy CEO & Chief Operating Officer from January 9 to December 31,
2023. He has also been the CEO of MEDIDATA since 2023. He joined Dassault Systèmes
in 2001 as Vice‑President R&D in charge of Sales Development and subsequently was
Vice‑President, Strategy and Business Development (2003); Executive Vice‑President,
Strategy and Marketing (2007); Executive Vice‑President, Corporate Strategy and
Market Development (2010); Executive Vice‑President, 3DS Global Brands and Corporate
Development (2014); Chief Financial Officer and Corporate Strategy Officer (2018); and
subsequently Chief Operating Officer & Chief Financial Officer in 2020 and 2023.
From 1992 to 1997 he was a consultant for technology innovation management at
Arthur D. Little, and then senior analyst for the technology sector at Crédit Suisse First
Boston Technology Group until 2001.
Other offices and positions
Within the Dassault Systèmes Group, in France
President and Chairman of the Board of Directors of Outscale SAS and Chairman of
Dassault Systèmes International SAS
Within the Dassault Systèmes Group, outside France
Chairman & Chief Executive Officer of Medidata Solutions Inc., Chairman of the Board of
Directors of Dassault Systèmes Americas Corp. and of Medidata Holdings, Inc.
Outside the Dassault Systèmes Group
Director of the PSL Foundation, Honorary Co‑Chairman of Alliance Industrie du Futur and
independent director of Sopra Steria Group S.A. (listed company) since May 24, 2023.
Other positions held, and expired, during the past five years
Within the Dassault Systèmes Group
Chairman of Netvibes SAS, Chairman of the Board of Directors of Netvibes Inc., Director
of Dassault Systèmes SolidWorks Corporation, Dassault Systèmes Simulia Corp. and
IQMS LLC, and Deputy CEO & Chief Operating Officer of Dassault Systèmes SE until
December 31, 2023
Outside the Dassault Systèmes Group
Director of Institut d’Etudes Avancées de Nantes until April 8, 2021, and of Fondation
Mines‑Télécom until 2023
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Xavier Cauchois – Independent Director
Chairman of the Audit Committee
Biography
Xavier Cauchois has more than 30 years of experience in auditing and consulting,
as a partner of PwC France in the Paris office. He has been responsible for several
management roles in France and at the European level and has supported his clients,
notably in the technology, telecoms and media sectors, as well as in the health sector
and more generally in industry.
He was head of PwC Europe and France for the Technology sector until 2009 and also a
member of the Global Strategic Committee for Auditing from 2005 to 2008.
He was a member of the France Executive Committee of PWC in charge of “Partners &
Strategy” from 2013 to 2016.
Other offices and positions
Director of Temenos AG (listed company) since May 3, 2023
Other positions held, and expired, during the past five years
Independent director of Technicolor S.A. (listed company) until September 27, 2022, and
of Technicolor Creative Studios S.A. (listed company) until June 15, 2023
Age: 66 years
Nationality: French
Business address:
Dassault Systèmes –
10 rue Marcel‑Dassault,
78140 Vélizy‑Villacoublay –
France
Main position:
Director
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2025
Date of first appointment:
05/22/2018
Number of Dassault
Systèmes shares owned
at December 31, 2023:
1,500
Attendance rate
at 2023 Board meetings:
100%
Attendance rate at 2023
Audit Committee meetings:
100%
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Catherine Dassault – Director
Biography
Catherine Dassault is a lead director of development at the Institut de l’Engagement,
which helps young volunteers enrolled in France’s Civic Service scheme to pursue their
studies, find a job or set up their own business. Before devoting her time to helping
develop and fund medical research and education, Catherine Dassault studied law and
psychology and worked in the advertising and communications industry.
Other offices and positions
Director of Fondation AP‑HP; Manager of Green Spark Invest SARL; Manager of TCBD &
Fils (partnership)
Chair of the Fonds de dotation Citadelle
Other positions held, and expired, during the past five years
Director of Dassault Aviation S.A. (listed company)
Age: 56
Nationality: French
Business address:
Groupe Industriel Marcel
Dassault SAS – 9 Rond‑Point
des Champs‑Élysées –
Marcel Dassault, 75008 Paris –
France
Main position:
Active member of associations
recognized to be of public
interest; Lead Director
of development of the Institut
de l’Engagement
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2026
Date of first appointment:
07/20/2016
Number of Dassault
Systèmes shares owned
at December 31, 2023:
183,280
Attendance rate
at 2023 Board meetings:
100%
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Laurence Daures – Lead Independent Director
Age: 50
Chair of the Compensation and Nomination Committee
Nationality: French
Member of the Audit Committee
Biography
Laurence Daures has been an associate professor in the Finance Department of the ESSEC
Business School since 2010 and a researcher affiliated with the Center for Research in
Economics and Statistics (CREST).
She holds a PhD in Finance from HEC Paris (2003), a Master’s in Management from
EDHEC, a “Master 104 Finance” degree from Paris Dauphine University, and a Master’s
in Economic Analysis and Policy from the Paris School of Economics.
Between 2004 and 2011, she was first an assistant professor, co‑Director and
subsequently Director of the ESSEC Finance department. She also taught at ENSAE
between 2000 and 2010.
As an academic researcher, she is the author of several publications on organizing and
regulating capital markets and has received distinctions for her work. She was the 2013
recipient of the Vega Prize from the Federation of European Securities Exchanges and
received the 2015 award for best research Article on derivative products granted by the
Montreal Institute of Structured Finance and Derivatives (IFSID).
Other offices and positions
Independent Director of LCL – Le Crédit Lyonnais S.A.
Other positions held, and expired, during the past five years
None
Business address:
ESSEC Business School –
3 Avenue Bernard Hirsch –
95021 Cergy‑Pontoise –
France
Main position:
Associate professor
in the Finance department –
ESSEC Business School
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2023
Date of first appointment:
05/26/2016
Number of Dassault
Systèmes shares owned
at December 31, 2023:
1,505
Attendance rate
at 2023 Board meetings:
100%
Attendance rate
at 2023 Audit Committee
meetings:
100%
Attendance rate
at 2023 Compensation
and Nomination
Committee meetings:
100%
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Odile Desforges – Independent Director
Member of the Audit Committee
Biography
Odile Desforges graduated from the École Centrale Paris in 1973. She began her career
at the French Transport Research Institute, before joining the Renault Group in 1981 as
Planner and then Product Engineer. In 1986, she joined the Purchasing Department as
manager for external equipment. She then became Body Equipment Purchasing General
Manager for the Renault/Volvo Purchasing Organization, then for Renault. In 1999, she
became Executive Vice‑President of Renault‑VI Mack Group, before becoming President
of Volvo Group’s 3P Business Unit in 2001.
In 2003, she was appointed Senior Vice‑President, Purchasing, and Chairwoman & Chief
Executive Officer of Renault Nissan Purchasing Organization (RNPO). Between March 1,
2009 and July 1, 2012, she was Executive Vice‑President, Engineering and Quality, and a
member of the Group Executive Committee.
Other offices and positions
Independent director of FORVIA SE (formerly Faurecia) (listed company)
Other positions held, and expired, during the past five years
Director of Safran (listed company), Imerys (listed company) and Johnson Matthey Plc
Age: 74
Nationality: French
Business address:
Dassault Systèmes –
10 rue Marcel‑Dassault,
78140 Vélizy‑Villacoublay –
France
Main position:
Director
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2024
Date of first appointment:
05/30/2013
Number of Dassault
Systèmes shares owned
at December 31, 2023:
2,100
Attendance rate
at 2023 Board meetings:
100%
Attendance rate
at 2023 Audit
Committee meetings:
100%
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Soumitra Dutta – Independent Director
Age: 60
Chairman of the Scientific Committee
Nationality: Indian
Member of the Compensation and Nomination Committee
Biography
Soumitra Dutta is Dean of the Saïd Business School at the University of Oxford since June 2022.
He began his career in 1985 as a research assistant at the University of California,
Berkeley, USA. Between 1988 and 1990, he gained further research experience at
General Electric. He then joined Insead, the international management school based
in Fontainebleau (France), where he served as lecturer then Dean of Technology and
E‑learning. In 1999, he set up eLab@Insead, the school’s research and analytics center
focused on big data analytics for businesses, which he headed until 2012. In 2002, he
was named Dean of Executive Education at Insead. During his tenure at Insead, Soumitra
Dutta also participated in setting up and managing three strategy consultancies
specialized in new technologies and innovation, which he developed before selling
them. From 2012 to 2022, he was successively Dean of the Samuel Curtis Johnson
Graduate School of Management and Founding Dean of the College of Business at Cornell
University (New York, United States).
Other offices and positions
Chairman of the Board of Directors of The Global Business Schools Network (GBSN)
Other positions held, and expired, during the past five years
Director of Sodexo (listed company), member of the Board of Shareholders of
ZS Associates (USA)
Business address:
Saïd Business School,
University of Oxford,
Park End Street, Oxford
OX1 3LW, UK
Main position:
The Peter Moores Dean,
Saïd Business School,
University of Oxford
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2024
Date of first appointment:
05/23/2017
Number of Dassault
Systèmes shares owned
at December 31, 2023:
500
Attendance rate
at 2023 Board meetings:
88.89%
Attendance rate
at 2023 Scientific
Committee meetings:
100%
Attendance rate
at 2023 Compensation
and Nomination
Committee meetings:
100%
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Marie‑Hélène Habert‑Dassault – Director
Age: 58
Nationality: French
Business address:
Groupe Industriel Marcel
Dassault SAS – 9 Rond‑Point
des Champs‑Élysées –
Marcel Dassault, 75008 Paris –
France
Main position:
Director of Communication
and Patronage, GIMD
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2023
Date of first appointment:
07/23/2014
Number of Dassault
Systèmes shares owned
at December 31, 2023:
2,830
Attendance rate
at 2023 Board meetings:
100%
Biography
Marie‑Hélène Habert‑Dassault has been Director of Communication and Patronage of the
Groupe Industriel Marcel Dassault SAS (GIMD) since 1998. She joined GIMD in 1991 as
Deputy Director of Communication after having started her career at the DDB advertising
agency in London as a media planning consultant. She holds a Master’s degree in
Business Law and Taxation, a Business Law practitioner diploma (Assas, France,1988)
and a Master’s in Strategy and Marketing (Sciences Po, Paris, 1989).
Other offices and positions
Within the Dassault Group
Member of the Supervisory Board of GIMD; Vice‑Chair of the Supervisory Board of
Immobilière Dassault S.A. (listed company); Chair of the Supervisory Board of Rond‑
Point Immobilier SAS; Member of the Board of Directors of Dassault Aviation S.A. (listed
company); Director and chairwoman of the Serge Dassault Foundation; Director of
Artcurial S.A.
Outside the Dassault Group
Director member of the Strategy Committee and of the HR and CSR Committee of
Biomérieux (listed company); Member of the Strategy Committee and President of
HDF; General Manager of H Investissements; General Manager of HDH Immo; Director
of Siparex Associés; Manager of SCI Duquesne; Director of Fondation Fondamental; and
member of the Board of Directors of the Fondation Gustave Roussy since 2023
Other positions held, and expired, during the past five years
Chair of the Supervisory Board of GIMD; Chair of the Supervisory Board of Rond‑Point
Immobilier SAS; General Manager of HDH
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Geneviève Berger – Independent director and Lead director of Sustainable Development
Member of the Scientific Committee
Biography
Ms. Geneviève Berger is a Doctor of Medicine (MD) and has a PhD in physical sciences
and human biology. In 1991 she founded, and ran until 2000, the mixed laboratory for
parametric imaging at the French National Center for Scientific Research (CNRS) and
Broussais Hôtel‑Dieu hospital. She was Director General of the CNRS from 2000 to 2003.
She worked as a university professor and hospital doctor at La Pitié‑Salpêtrière hospital
from 2003 to 2008 before joining Unilever, first as a director and then as an executive
member in charge of research and development from 2008 to 2014. Ms. Geneviève
Berger was Chief Research Officer for the Swiss company Firmenich from April 1, 2015 to
December 2021.
Since October 2022 she has been a member of the Supervisory Board of Institut Curie.
Other offices and positions
Non‑executive director of Kerry Group plc. (Ireland) (listed company)
Other positions held, and expired, during the past five years
Independent director of AstraZeneca (until May 2021) and of Air Liquide (listed company)
(until May 3, 2023)
Age: 69
Nationality: French
Business address:
Dassault Systèmes –
10 rue Marcel‑Dassault,
78140 Vélizy‑Villacoublay –
France
Main position:
Director
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2026
Date of first appointment:
05/24/2023
Number of Dassault
Systèmes shares owned
at December 31, 2023:
0
Attendance rate
at 2023 Board meetings:
100%
Attendance rate at 2023
Scientific Committee
meetings:
100%
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Hervé Andorre – Director representing employees
Biography
Hervé Andorre is a director representing employees, appointed to this position by
the “Ensemble à DS” labor union. He has been Director of Culture & Management at
Dassault Systèmes since 2015, having previously served as Director of Human Resources
Development from 2003. He was Head of Human Resources for the R&D and CATIA
organizations between 2003 and 2008. He joined Dassault Systèmes in 1998 to create
the Human Resources Development function. Previously, he worked as an engineer and
subsequently as a human resources manager at IBM France.
Other offices and positions
None
Other positions held, and expired, during the past five years
None
Age: 58 years
Nationality: French
Business address:
Dassault Systèmes –
10 rue Marcel‑Dassault,
78140 Vélizy‑Villacoublay –
France
Main position:
Director, Culture
& Management
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2023
Date of first appointment:
05/26/2020
Number of Dassault
Systèmes shares owned
at December 31, 2023:
53,800
Attendance rate
at 2023 Board meetings:
100%
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Tanneguy de Fromont de Bouaille – Director representing employees
Biography
Tanneguy de Fromont de Bouaille is the director representing employees appointed by
the CFE‑CGC. He was recruited by Dassault Systèmes in 1992 and currently serves as
Senior Director, Corporate Affairs after having been employed as General Manager of
Dassault Data Services (between 1992 and 2004), Europe Sales Administration Director
for ENOVIA (between 2004 and 2012) and Consumer Goods and Retail Industry Sales
Director of Dassault Systèmes (between 2012 and 2019). He previously held technical
functions and subsequently commercial agency management functions with Cap Gemini
France and Cap Gemini America. Tanneguy de Fromont de Bouaille graduated from École
Centrale Lyon and the Massachusetts Institute of Technology.
Other offices and positions
President of the Course en Cours association since 2019
Other positions held, and expired, during the past five years
None
Age: 69
Nationality: French
Business address:
Dassault Systèmes –
10 rue Marcel‑Dassault,
78140 Vélizy‑Villacoublay –
France
Main position:
Senior Director,
Corporate Affairs
of Dassault Systèmes
Term expires:
General Meeting called
to approve the financial
statements for the year
ending December 31, 2023
Date of first appointment:
06/24/2016
Number of Dassault
Systèmes shares owned
at December 31, 2023:
63,535
Attendance rate
at 2023 Board meetings:
100%
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 5.1.1.2
Practices of the Board of Directors
Separation of the offices of Chairman
of the Board and Chief Executive Officer
Since 2002, Dassault Systèmes has separated the offices of
Chairman of the Board and Chief Executive Officer.
The functions of Chairman of the Board and Chief Executive
Officer were combined for a transitional period in 2023, with
Mr. Bernard Charlès acting as Chairman & Chief Executive
Officer from January 9 to December 31.
The temporary combination of these functions took place in
the following context:
— on January 9, 2023, Mr. Charles Edelstenne reached
the age limit stipulated in the by‑laws for the role of
Chairman of the Board;
— in accordance with the Board of Directors’ decisions
at its meetings of April 26 and May 19, 2022, on the
recommendation of the Compensation and Nomination
Committee, the following succession plan carefully
crafted over several years in line with Dassault Systèmes’
long‑term strategy was implemented and took effect on
January 9, 2023:
– Mr. Charles Edelstenne, founder of Dassault Systèmes,
was appointed Honorary Chairman and has remained
a member of the Board of Directors of Dassault
Systèmes,
– Mr. Bernard Charlès, Vice chairman of the Board of
Directors and Chief Executive Officer, was appointed
Chairman & Chief Executive Officer,
– Mr. Pascal Daloz, Chief Operating Officer, has been
appointed Deputy CEO & Chief Operating Officer, and
also remains a member of the Dassault Systèmes
Board of Directors.
This combination of functions ended on December 31, 2023,
with Mr. Bernard Charlès remaining Chairman of the Board
and Mr. Pascal Daloz becoming Chief Executive Officer of
Dassault Systèmes with effect from January 1, 2024.
The year 2023 thus provided an opportunity to prepare the
pairing by Mr. Bernard Charlès and Mr. Pascal Daloz, who
succeed the pairing formed by Mr. Charles Edelstenne and
Mr. Bernard Charlès.
In addition to providing a balance of power, this separation
of functions allows each of them to focus on well‑defined
remits.
As such, the Chairman of the Board organizes and supervises
the work of the Board of Directors and reports thereon at the
General Meeting of Shareholders. He oversees the smooth
running of the corporate bodies of Dassault Systèmes SE
and compliance with best governance practices, and ensures
that the directors are able to fulfill their duties. Mr. Bernard
Charlès leads the Board’s work on Strategy, Governance, Risk
Management and Corporate Social Responsibility aspects.
The Chief Executive Officer keeps the Chairman of the
Board regularly informed of significant matters concerning
Corporate Governance
The Board’s Corporate Governance Report
5
Dassault Systèmes, particularly with respect to its strategy,
organization and investment projects.
The Chairman of the Board also oversees the maintenance
of quality relations with shareholders in close coordination
with measures taken in this area by the Chief Executive
Officer. To report on this mission, an overview of the change
in shareholding in the Company and shareholder dialog
is presented and discussed each year during the Board of
Directors meetings.
Given his extensive experience and in‑depth knowledge of
Dassault Systèmes, and having expressed his availability to
devote himself to the very long‑term matters proposed by
the Chief Executive Officer, Mr. Bernard Charlès continues to
contribute to the Company’s strategy, fundamental research
strategy and the development of governmental or sensitive
relations with certain customers.
All of these tasks of the Chairman of the Board are directed
toward serving Dassault Systèmes and his actions are taken
into account in reviewing and determining his compensation.
The Chief Executive Officer is vested by law with the
most extensive powers to act on behalf of Dassault
Systèmes SE, subject to the limitations of powers indicated
in paragraph 5.1.1.4 “Powers of the Chief Executive Officer”
below. He represents Dassault Systèmes SE in its dealings
with third parties.
The Board of Directors has set up a number of special
committees to help it perform its tasks: the Audit Committee
(established in 1996), the Compensation and Nomination
Committee and the Scientific Committee (established in
2005). These Committees report regularly to the Board
of Directors as to the performance of their missions. The
composition of these Committees and their practices are
described in paragraph 5.1.1.3 “Composition, Practices and
Activities of the Board Committees”.
The Board of Directors also appointed a lead independent
director, whose
in
paragraph 5.1.1.1 “Composition of the Board of Directors”,
and a lead director of sustainable development matters.
are described
specific
remits
Measures taken to ensure a balance
of power within the Board of Directors
Since Dassault Systèmes is committed to ensuring a balance
of power within the Board of Directors, several measures
have been taken in this regard:
lead
independent director among
— the Board of Directors, during the meeting held on
March 15, 2022, decided to appoint Ms. Laurence
Daures as
the
independent directors. She is responsible for preventing
and managing conflicts of interest within the Board of
Directors, including reviewing any new directorships
envisaged by the directors. She is also responsible
for making recommendations concerning the Board’s
functioning and overseeing its formal evaluation. In
addition, she may request an extraordinary meeting of
the independent directors when a key strategic decision
is submitted to the Board (for an exhaustive list of her
duties, see paragraph 5.1.1.1 “Composition of the Board
of Directors”);
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— 50% of the members of the Board of Directors are
independent directors (excluding directors representing
employees – see paragraph 5.1.1.1 “Composition of the
Board of Directors”);
— 100% of the members of all Board committees
are
(see paragraph 5.1.1.3
“Composition, Practices and Activities of the Board
Committees”);
independent directors
— independent directors meet, each year, without the
presence of executive officers and other directors, to
hold a general discussion on the functioning of the Board
of Directors and discuss specific subjects (for details
regarding the sessions held in 2023, see paragraph
“Meetings of independent directors (annual executive
sessions)” below);
— the Board of Directors must authorize all acquisitions or
disposals of entities, shareholdings or assets (excluding
intragroup transactions) and any use of external funding
if the amount of the transaction exceeds €500 million
(see paragraph 5.1.1.4 “Powers of the Chief Executive
Officer”);
— within the scope of its duties, the Compensation and
Nomination Committee reviews the succession plan
for the executive officers and for all members of the
Executive team each year.
Main provisions of the Board’s internal regulation
The Board of Directors has drawn up an internal regulation,
which was amended on December 1, 2023, to specify the
procedure applicable to the prevention and management of
conflicts of interest within the Board (see below).
The internal regulation sets out the necessary consideration
of social and environmental issues in the definition and
implementation of Dassault Systèmes’ strategic directions.
It stipulates the frequency of Board meetings and how
Board members may participate in them. It also provides the
information rules of the Board, whether such information is
provided on a regular basis (e.g. information on off‑balance
sheet commitments and the cash position) or in case of
events which may have a material impact on Dassault
Systèmes’ prospects, outlook or on the implementation of
Dassault Systèmes’ strategy.
The internal regulation provides for the appointment of a
lead director and specifies their missions.
The internal regulation requires that, each year:
— the Board reviews the independence of the directors;
— the independent directors meet without the executive
officers and other directors to hold a general discussion
regarding the practices of the Board of Directors and
debate specific subjects; and
— the Board discusses its functioning. Every three years,
the Board conducts a formal review.
In terms of confidentiality obligations, the Board’s internal
regulation stipulates that the directors, or any persons
attending meetings of the Board or one of its Committees,
must keep confidential all information obtained in connection
with the fulfillment of their duties.
With regard to the prevention and management of conflicts
of interest, the executive officers must first obtain the
approval from the Board prior to accepting a new term of
office in a listed company.
Each director and executive officer is required to inform the
Chairman of the Board of Directors, prior to any commitment
or decision on their part, of:
— any situation of conflict of interest, even potential,
with the Company or one of its subsidiaries and, where
applicable, to refrain from attending the discussion and
taking part in the vote on the corresponding deliberation.
In particular, the personal involvement of a director
in a transaction in which the Company or one of its
subsidiaries has a direct interest, or which has come to
their attention in their capacity as a director, must be
notified to the Chairman of the Board of Directors prior to
its conclusion, as well as;
— their intention to accept a new term of office or new
duties or missions in a third‑party company (French or
foreign, listed or unlisted).
The Chairman of the Board of Directors examines the
request, seeking the opinion of the Chief Executive Officer
and the Lead Director, informs the director concerned of
his position and, if required by the AFEP‑MEDEF corporate
governance code, informs or refers the matter to the Board
of Directors for an opinion.
If the situation of conflict of interest or the request for a
new term of office or new duties or missions in a third‑party
company concerns the Chairman of the Board of Directors,
the procedure detailed above must be followed, in which
case the role of Chairman of the Board is performed by the
Chief Executive Officer.
In addition, directors are not permitted to use their title or
position to obtain benefits of any kind, for themselves or
third parties.
The internal regulation also states the minimum number of
shares that must be held by directors (excluding directors
representing employees) for the duration of their terms of
office and at the latest two years after their appointment.
This number is 500 shares with a minimum of 250 shares
during the first year in office. Eventually, it requires directors
to comply with the rules set up regarding the prevention of
insider trading.
The Audit Committee has its own charter.
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The Board of Directors’ activities in 2023
The Board of Directors met nine times in 2023, with an
attendance rate of 99%.
The Board of Directors discussed the areas provided for in
applicable legislation and mainly the following issues:
— the definition and review of strategic directions;
— the review of the ESG
(Environment, Social and
Governance) strategy – the Company’s targets, plans of
action and achievements – and the results of the climate
risk and opportunity assessment, following a review by
the lead director of sustainability matters;
— the financial statements and the budget (approval of the
annual and consolidated financial statements of 2022,
the consolidated financial statements for the first half
of 2023 and the provisional financial statements for
2023; review of the quarterly results and the financial
objectives for 2023); the Board was kept informed
of Dassault Systèmes’ financial situation through the
reports of the Audit Committee and the presentations
made at each meeting by the Deputy CEO and the
Executive Vice‑President, Chief Financial Officer;
— the review of acquisition projects;
— the notice of the General Meeting of Shareholders and
the drafting of the Universal registration document
2022;
— the review of the assessment of the internal control
system;
— the compensation of corporate officers and allocation of
shares and share subscription options;
— the Board’s composition and practices (including a review
of the independent status of directors and a formal
review of the Board);
— the appointment of Geneviève Berger as a member of the
Scientific Committee and lead director with respect to
ESG issues;
— implementation of the new governance for 2024;
— Dassault Systèmes SE’s compliance with corporate
governance rules and recommendations;
— the policy on equal employment and pay;
— the compliance program, including risk mapping for
corruption and influence peddling, in accordance with the
recommendation of the French Anti‑Corruption Agency,
and the Ethics Committee’s management report;
— the prevention and management of risks within the
Company, following a review by the three committees of
the Board of Directors at a special annual meeting (see
paragraph “Meetings of independent directors (annual
executive sessions)” below).
Consideration by the Board
of social and environmental issues
Back
in February 2012, Dassault Systèmes published
its purpose, which aims to contribute to sustainable
development in all its components: to provide companies and
individuals with 3DEXPERIENCE universes enabling them
to imagine sustainable innovations, capable of harmonizing
product, nature and life.
This purpose determines not only the choice of acquisitions
and product developments, but also the culture and values of
the Company and each of its organizations.
Social, societal and environmental responsibility (CSR) is at
the heart of Dassault Systèmes’ strategy and achievements.
It is applied at every level of the Company:
— the Board of Directors takes sustainable development
issues
into account when defining and reviewing
strategy, in accordance with its internal regulations and
French law. In accordance with the AFEP‑MEDEF Code,
it sets out strategic orientations in this area over several
years;
— within the Board of Directors, Dassault Systèmes
has appointed an independent director to review the
company’s ESG (Environment, Social and Governance)
objectives, action plans and achievements, before
reporting to the Board;
— each Board of Directors committee (made up exclusively
of independent directors) is in charge of sustainability in
line with its mission:
– the Scientific Committee examines the evolution
of Dassault Systèmes’ portfolio of sustainability
enabling solutions and analyzes potential technological
breakthroughs impacting its market,
– the Audit Committee includes in its annual program
the review of new ESG reporting requirements and all
related matters,
– the Compensation and Nomination Committee reviews
a number of corporate governance matters, including
succession plans for Executive officers and members
of the Executive Committee, their compensation
packages, and retention and
incentive
plans for the Company’s Executives and employees.
In particular, the Committee reviews the performance
criteria, notably based on a multi‑criteria ESG indicator,
for the annual variable compensation of the Chief
Executive Officer and Executive Committee members
and the acquisition of performance shares awarded to
them;
long‑term
— the members of
the Board of Directors’
three
committees, i.e. all independent directors, now meet
in two annual sessions: one dedicated to sustainability
issues, and the other to risk prevention and management
within the Company, including ESG risks (see section
“Meetings of independent directors (annual executive
sessions)” in paragraph 5.1.1.2 “Practices of the Board of
Directors”);
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— the annual variable compensation of the Chief Executive
includes
Officer and Executive Committee members
a multi‑criteria ESG
indicator. The vesting of the
performance shares allocated in 2024 to the Executive
officer (as well as to Dassault Systèmes’ beneficiary
employees) will also partly depend on this ESG indicator;
— within the Executive Committee, Florence Verzelen,
Executive Vice‑President,
Industry, Marketing &
Sustainability, is responsible for Dassault Systèmes’
sustainability roadmap,
its aspects of product
in
development strategy to help customers become more
sustainable (handprint), and the management of Dassault
Systèmes’ environmental footprint;
— the Sustainability Steering Committee brings together
at least three times a year the executive managers of
the Company’s key functions to discuss action plans
and progress in support of the sustainable development
strategy. The Committee is co‑chaired by the Executive
Vice‑President, Industry, Marketing & Sustainability, and
the General Secretary of Dassault Systèmes;
— the Chief Sustainability Officer
is the Committee’s
secretary. She oversees Dassault Systèmes’ sustainable
development strategy. Her organization’s main missions
are:
– supporting strategic customers in addressing their
sustainability
and
deploying their portfolio of solutions, particularly in
line with the sustainability levers set out in the EU
Taxonomy,
and developing
challenges,
– orchestration of environmental reporting, definition
of the carbon neutrality pathway and management of
non‑financial ratings,
– interaction with all institutional, academic, analyst
and integrator partners on sustainable development
matters.
This involves animating:
— a network of over 40 Sustainability Leads who
implements the Company’s sustainability strategy in the
GEOs, brands and industries in which it operates;
— the Zero Carbon Team, which brings together the seven
key functions committed to achieving science‑based
carbon emissions reduction targets.
is
reporting process and non‑financial
In 2021, the Company has created, within the Finance
department, a Sustainable Finance department, including
the Procurement department as well as the non‑financial
reporting team. This Sustainable Finance & Procurement
department
in charge of ensuring the reliability of
information,
the
calculating indicators relating to the EU Taxonomy, assessing
financial risk according to climate scenarios and leading
its supplier chain so that the latter also commit to an
ambitious decarbonization trajectory. In 2023, this team
has been reinforced to prepare Dassault Systèmes for the
implementation of the CSRD.
As a result, in 2023 the Group has launched a project
to improve its sustainability reporting led jointly by the
288
Sustainable Development and Sustainable Finance teams in
order to:
— carry out a double materiality assessment;
— identify additional indicators to be published for fiscal
year 2024;
— and to define the principles, processes and information
systems for a reporting system that meets the
internal
requirements of reliability, traceability and
control, satisfying the recommendations of the regulator,
and enabling improved monitoring of the Company’s
sustainability performance.
This project will be continued in 2024 and 2025.
Meetings of independent directors
(annual executive sessions)
Every year, the three committees of the Board of Directors
independent directors) hold
(composed exclusively of
dedicated sessions.
In September 2023, two sessions were held:
— an initial session devoted, as in 2021 and 2022, to
the prevention and management of risks within the
Company;
— a second session dedicated to sustainability issues, in line
with the wishes of the independent directors.
The session devoted to the management of risks within
the Company provided an opportunity for the Company’s
Enterprise Risk Management Steering Committee
(see
paragraph 5.2 “Company risk management and internal
control procedures”) to share the details and conclusions of
its work since September 2022, in particular the updated risk
mapping incorporating existing sub‑mappings for specific
risks (including anti‑corruption, CSR, cybersecurity and
personal data, duty of care and purchasing).
The Risk Management Steering Committee was also
able to provide a reminder about the participants and
governance established by the Company to manage risks
(see paragraph 5.2.2.1 “Risk Management Participants and
Organization”) and the crisis management procedure.
As is the case each year, these presentations were followed
by discussions among the independent directors, without
the presence of Dassault Systèmes’ teams, on the practices
of the Board in order to provide the Board with an opinion
and recommendations on the subject.
The session dedicated to sustainability
issues allowed
the independent directors to review in detail, with the
Sustainability Steering Committee
(see details of the
governance established around these issues in paragraph 2.1
“Sustainability Governance”), Dassault Systèmes’ strategy
in this area and the progress made in each of its pillars:
reduction of the Company’s environmental footprint,
development of solutions allowing customers to reduce
their own environmental
footprint, and development
of human capital in respect of diversity and ethics. The
strategy implemented by Dassault Systèmes with respect
to the various non‑financial rating agencies and current
regulatory developments (EU taxonomy and preparation
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of non‑financial information as part of the implementation
of the new European directive) was also reviewed and
discussed.
Directors’ training
Each year, all the directors of Dassault Systèmes are invited
to attend a dedicated information day on the 3DS Paris
Campus and the 3DEXPERIENCE Forum event in France or
the United States, where they can receive feedback from the
Company’s customers and partners.
In 2023, the yearly Director’s Day was dedicated to virtual
twins and their mutiple uses, specifically:
— the unique combination of modeling, simulation, data
science and artificial intelligence that Dassault Systèmes’
virtual twins provide;
— how virtualisation catalyzes the transformation of
the three sectors of the economy in which Dassault
Systèmes operate; and
— how virtualisation will redefine the economy of the
future.
In accordance with the AFEP‑MEDEF Code, each director
may request, if he or she considers it necessary, additional
training in specific aspects of Dassault Systèmes, its business
lines, business sector and ESG challenges, and in particular,
climate‑related issues.
Directors representing employees are also offered training
tailored to their duties.
Finally, the members of the Audit Committee receive,
upon appointment, information on the specific accounting,
financial and operational aspects of Dassault Systèmes.
The Board’s review of its practices and performance
The Board of Directors is constantly seeking to improve its
composition and practices. To this end:
— it solicits the independent directors’ comments on the
subject. The independent directors meet each year during
a dedicated session to provide an opinion, in particular,
on the practices of the Board;
— it holds a debate at least once a year on its functioning;
and checks that important issues are suitably prepared
and debated; and
— it conducts a formal review every three years,
in
accordance with its internal regulation and the AFEP‑
MEDEF Code.
The results of the formal reviews organized in 2018 and
2021 with all directors were positive overall.
The comments and suggestions made by the directors during
the reviews have been taken into account:
— the schedule for meetings of the Board and
its
committees was modified and the independent directors’
session extended to allow them to comprehensively
discuss,
in addition to corporate governance, other
strategic subjects in a holistic manner;
— management continued to pay close attention to the
subjects covered during the directors’ annual information
day, which the independent directors found rewarding;
— management will ensure that
joint meetings are
organized between committees, particularly the Audit
Committee and the Scientific Committee, in order to take
a global approach to issues or, for example, to plan ahead
for major decisions when a significant acquisition is being
considered.
Following their meeting in September 2023, the independent
directors reported that they were very satisfied with the
practices and composition of the Board of Directors and
made few recommendations for change. They reiterated
their wish to see joint sessions of the Audit Committee and
the Scientific Committee. They also discussed the successful
evolution of the governance Chairmanship of the Board –
Executive Management.
Since 2021, the formal review of the Board’s practices has
included an assessment of the Chairman’s contribution. The
directors were highly satisfied with the performance of this
role, and no recommendations were made. The transition
from Mr. Charles Edelstenne to Mr. Bernard Charlès, which
took place in January 2023, was the subject of a specific
review by the independent directors in September 2023:
at the Board of Directors meeting in December 2023, they
indicated that the transition had been remarkable.
The Board of Directors thus declared that it was satisfied
with the effective contribution of each director to its work,
notably on the basis of their respective skills, the attendance
and the involvement in the debates of the Board and its
committees. The Compensation and Nomination Committee
is in charge of reviewing the effective contribution of the
independent directors to the Board’s work before reporting
its conclusions to the Board of Directors.
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5.1.1.3
Composition, Practices and Activities
of the Board Committees
call on external experts, having assessed their expertise and
independence.
Audit Committee
The Audit Committee consists solely of
independent
directors: Mr. Xavier Cauchois, who chairs the Committee,
Ms. Odile Desforges and Ms. Laurence Daures. All have
financial or accounting expertise.
The Audit Committee, in line with its charter, is responsible
for overseeing:
— matters related to the preparation and the auditing of
accounting, financial and non‑financial information, in
compliance with applicable regulations;
— questions related to the implementation of regulations in
the process of being rolled out;
— the preparation process for financial and non‑financial
information, the effectiveness of the internal control and
risk management systems, the audit by the Statutory
Auditors of
the annual financial statements and
consolidated financial statements and the independence
of the Statutory Auditors; and
— the relationship between Dassault Systèmes and its
Statutory Auditors. In this regard, the Audit Committee
is involved in appointing and reappointing the Statutory
Auditors. It monitors the Statutory Auditors to ensure
they fulfill their mission and takes into account the
findings and conclusions of the Haut Conseil du
Commissariat aux Comptes after audits have been
conducted.
In 2023, the Audit Committee met eight times, including
three meetings at the headquarters, which were attended
by the Deputy Chief Executive Officer, the Chief Financial
Officer, the Vice General Secretary, the Group Controller,
the Financial Reporting Director, the Internal Audit Director,
the General Counsel and the Statutory Auditors, with whom
regular discussions were held without the management
of Dassault Systèmes attending such discussions. The
attendance rate at the Audit Committee meetings in 2023
was 100%.
During 2023, the Audit Committee had the opportunity to
discuss, or to give its opinion on, various topics brought to its
attention at its regular meetings, including:
— as part of the quarterly and annual closings, a review
of Dassault Systèmes’ performance, its targets and the
consolidated and parent company financial statements;
— the authorization of services other than certification
of the financial statements performed by the Statutory
Auditors;
— the validation and follow‑up of an audit plan for fiscal
year 2023;
— the duties and activities of the Audit and Risks team:
– changes in the internal control assessment system,
– review of internal control for the fiscal year 2023,
– review of internal audit work for the fiscal year 2023,
– review of fraud cases,
On all
recommendations to the Board of Directors.
these matters,
this Committee
reports
its
– update of the Audit and Risks team Charter,
The Audit Committee also provides the Board of Directors
with regular reports on its activities, the results of the
process of certification of the financial statements by the
Statutory Auditors, how this process contributed to the
integrity of the financial and non‑financial information and
the role it played in this process. It informs the Board of
Directors immediately of any difficulties it encounters.
It approves the annual plan for internal audits and gives its
opinion on the department’s organization.
Eventually, it authorizes the Statutory Auditors to provide
services other than the certification of the financial
statements.
In the performance of its missions, the Audit Committee
is given presentations by Dassault Systèmes’ finance
department, particularly regarding risks and, as the case may
be, off‑balance sheet commitments, and during the audit of
the financial statements, a presentation from the Auditors on
the results of the statutory audit and the accounting options
selected. With regard to the efficiency of the internal control
and risk management systems, the Statutory Auditors
inform the Audit Committee of their main findings and the
Internal Audit Director reports to the Audit Committee the
conclusions of his/her work. In addition, the Committee may
– review of Group
risk mapping and
risk‑related
governance during the independent directors meeting;
— review of the conclusions of the IFACI Professional
Certification obtained by the Audit and Risk Team and
the action plans relating to the quality of the internal
audit system;
— the external audit plan and budget for 2023;
— the review of sustainable financing activities:
– review and discussion with the Independent Third‑
Party (ITP) of the non‑financial performance for fiscal
year 2022,
– review of the system set up by the Company for
preparing for the application of the EU Corporate
Sustainability Reporting Directive (CSRD), which will
be applied for the first time in fiscal year 2024,
– monitoring of the process to transition from Ernst &
Young et Autres to PricewaterCoopers Audit as ITP for
fiscal year 2023 and review of the process for selecting
the ITP responsible for auditing the sustainability
report when the CSRD is applied for the first time in
2024;
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— the changes in business models and related revenue
recognition principles;
— the monitoring of tax risks, changes to the tax
environment, in particular in France and the United
States, and getting Dassault Systèmes ready for the
OECD’s Pillar II GloBE program;
— the monitoring of the main disputes and other
proceedings, such as civil, commercial and
tax
proceedings, which are generally linked to its day‑to‑day
operations;
— acquisition projects;
— the monitoring of the Group’s financing policy;
— the main account closing options for the fiscal year.
Compensation and Nomination Committee
The Compensation and Nomination Committee is composed
solely of independent directors: Ms. Laurence Daures, who
chairs the Committee, and Mr. Soumitra Dutta.
The main duties of this Committee are:
— to propose to the Board of Directors the amounts for
compensation and benefits of the executive officers,
including the rules for calculating variable compensation
and for verifying the application of these rules;
— to propose the amount and the rules for allocation of the
directors’ compensation in respect of their directorship;
— to propose to the Board of Directors the appointment
or renewal of directors and organize their selection
procedure, which breaks down
into several steps:
line with the
determining the selection criteria
diversity policy applicable to the Board, search for
candidates, meeting the selected candidates, and
decision by the Committee with a view to making a
recommendation to the Board;
in
— to examine the independence of those directors who are
identified as such, based on the criteria set out in the
AFEP‑MEDEF Code;
— to assess the effective contribution of the independent
directors to the work of the Board;
— to examine Dassault Systèmes’ appointment policy
and to be informed of the compensation policy for the
managers, including non‑corporate officers;
— to discuss the employee profit‑sharing and incentive
plan, in particular the allocation of performance shares
and share subscription options; and
— to propose to the Board of Directors solutions in case of
vacancy of the position of Chairman of the Board and
of Chief Executive Officer. In this respect, and before
being appointed Chairman & Chief Executive Officer in
January 2023, Mr. Bernard Charlès had been appointed as
Vice chairman of the Board of Directors so that he could
act as Chairman of the Board in the event of absence or
vacancy in relation to the Chairman position. In 2023,
Mr. Pascal Daloz was appointed Deputy CEO & Chief
Operating Officer.
In addition, the Committee meets regularly with the
members of Dassault Systèmes’ Executive Committee as
well as members of the management teams and oversees
preparations for the future through an annual review, with
Mr. Bernard Charlès, of the composition of the Executive
Committee and of the short‑ and medium‑long‑term
succession plan for its members.
When the Compensation and Nomination Committee carries
out its appointment work, it liaises with the Chairman of the
Board of Directors and the Chief Executive Officer.
In relation to its duties, the Committee met three times
in 2023, with an attendance rate of 100%. During these
meetings, it carried out all of the missions described above;
it also made observations and recommendations to the Board
on the following subjects:
— the governance and composition of the Board of Directors
and
including the replacement of
Ms. Toshiko Mori, independent director and lead director
of sustainable development, by Ms. Geneviève Berger;
its committees,
— the independence of directors, which was reviewed
based on the responses of each director to a dedicated
questionnaire, and the assessment of their actual
contribution to the Board’s work;
— the amount and the allocation of the compensation
allocated to directors;
— the compensation of executive directors, particularly in
the context of change of the governance in 2023 and
2024;
— the composition of the Operations Executive Committee,
the short‑ and medium‑long term succession plan for its
members and their compensation;
— the share allocation plans and share subscription options
for Dassault Systèmes executives and employees; and
— the new employee share ownership plan.
On a general and ongoing basis, the Compensation and
Nomination Committee monitors the compliance of Dassault
Systèmes with applicable laws and regulations and best
practices in the area of corporate governance, in particular
with respect to the composition of the Board.
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Scientific Committee
Like the other Board committees, the Scientific Committee
is composed solely of independent directors: Mr. Soumitra
Dutta, Chairman of the Committee, and, since May 24, 2023,
Ms. Geneviève Berger, who replaced Ms. Toshiko Mori as
from that date. The Committee reviews the main directions
of research and development, as well as Dassault Systèmes’
technological achievements, and makes recommendations
on these matters. The persons in charge of these matters
within Dassault Systèmes are invited to the Committee’s
meetings.
The Scientific Committee met twice in 2023, with an
attendance rate of 100%.
The Scientific Committee reviewed the main topics that are
central to Dassault Systèmes’ strategy, and more specifically
the virtuous and circular consideration of
individual
experiences and sustainability issues in future industrial
offers.
They also addressed the following subjects:
— the “From Things to Life” approach, which offers a new
scientific perspective, with the living world as the prism
chosen by all industries to improve the quality of life
(particularly in terms of the environment and health), in
line with Dassault Systèmes’ purpose;
— Dassault Systèmes’ scientific DNA, which uniquely
positions the scientific method on the market, allowing
hypotheses to be formulated, possibilities to be explored
and an ongoing comparison with reality, all through the
virtual world;
— the multi‑scale, multi‑disciplinary, integrative approach
made possible by the digital twin concept itself, leading
to collaboration among several fields;
— the value of the 3DEXPERIENCE platform as a catalyst
for scientific networks and new collaborative practices
between public and private stakeholders;
— opening up to the consumer, citizen and patient
markets: for the consumer on the one hand, through
differentiating offers such as those aimed at consumer
goods, notably with CENTRIC PLM’s strategy and its
expansion into fields other than fashion, and on the
other hand, the contribution of mobile solutions for new
uses in everyday life; for citizens, for example, to design
their interiors, collaborate with service providers or
simulate energy consumption, or providing links to care
providers for patients. The underlying technologies and
investments associated with artificial intelligence were
discussed;
— finally, the strategy of 3DS OUTSCALE and its positioning
as sovereign and sustainable operator of Trusted
Experience as a Service.
5.1.1.4
Powers of the Chief Executive Officer
Pursuant to French
law, the Chief Executive Officer
represents Dassault Systèmes SE in dealings with third
parties within the limits set by its corporate purpose and by
the powers reserved by law to the shareholders or the Board
of Directors.
However, under Dassault Systèmes SE’s by‑laws, certain
decisions of the Chief Executive Officer are submitted to
the prior approval of the Board. This covers, in particular,
the acquisition or the disposal of an entity, shareholding or
asset (excluding internal transactions) or the use of external
funding (bank loan or capital market issue), if the amount
of the transaction exceeds a threshold set each year by the
Board. This threshold, which was set by the Board on March
12, 2024, is €500 million. On March 12, 2024, the Board also
authorized the Chief Executive Officer to grant guarantees,
in the name of Dassault
endorsements or securities
Systèmes SE:
— without any limitation on the amount, in order to
guarantee any commitments made with respect to tax
and customs administrations or made by companies
controlled by Dassault Systèmes SE;
— up to an aggregate amount of €500 million in other cases.
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5.1.2
Executives of Dassault Systèmes
Dassault Systèmes’ new governance organization was
announced on June 9, 2023, and took effect on January 1,
2024, in line with the Company’s long‑term strategy.
As such, Mr. Bernard Charlès, Chairman & Chief Executive
Officer in 2023, continues to act as Executive Chairman of
the Board of Directors, and Mr. Pascal Daloz, Deputy CEO
& Chief Operating Officer in 2023, is now Chief Executive
Officer.
Since January 1, 2024, the Executive Committee, chaired by
Mr. Pascal Daloz, has brought together the heads of Dassault
Systèmes’ main business lines and functions. It consists of
13 members, five of whom are women:
Pascal Daloz (1)
Florence Hu‑Aubigny
Philippe Laufer
Elisa Prisner
Patrick Johnson
Florence Verzelen (2)
Rouven Bergmann
Laurence Barthès
Olivier Ribet
Samson Khaou
Erik Swedberg
Victoire de Margerie
Grégory Abate
Chief Executive Officer
Executive Vice‑President, Research & Development
Executive Vice‑President, 3DS Global Brands
Executive Vice‑President, Corporate Strategy & Platform Transformation
Executive Vice‑President, Corporate Research & Sciences
Executive Vice‑President, Industry, Marketing & Sustainability
Executive Vice‑President, Chief Financial Officer
Executive Vice‑President, Chief People & Information Officer
Executive Vice‑President, EMEA (3)
Executive Vice‑President, Asia‑Pacific
Executive Vice‑President, Americas
Vice‑President Corporate Equity, Marketing & Communications
Senior Executive Vice‑President, General Secretary
(1) Mr. Pascal Daloz is an executive officer (dirigeant mandataire social exécutif) within the meaning of the AFEP‑MEDEF Code.
(2) As social, societal and environmental responsibility (CSR) is the focus of Dassault Systèmes’ strategy and of its achievements, Ms. Florence Verzelen is responsible for
sustainable development matters within the Executive Committee.
(3) Europe Middle East Africa.
As a reminder, in 2023 the Executive team, which separated the long‑term strategy from the governance and operational
performance of Dassault Systèmes, was composed as follows:
Bernard Charlès (1)
Pascal Daloz (1)
Thibault de Tersant
Chairman & Chief Executive Officer
Deputy CEO & Chief Operating Officer
Senior Executive Vice‑President, General Secretary
The Operations Executive Committee, reporting to Mr. Pascal Daloz, consisted of 11 members, including five women:
Pascal Daloz
Florence Hu‑Aubigny
Philippe Laufer
Rouven Bergmann
Florence Verzelen (2)
Olivier Ribet
Samson Khaou
Erik Swedberg
Laurence Barthès
Elisa Prisner
Victoire de Margerie
Deputy CEO & Chief Operating Officer
Executive Vice‑President, Research & Development
Executive Vice‑President, 3DS Global Brands
Executive Vice‑President, Chief Financial Officer
Executive Vice‑President, Industry, Marketing & Sustainability
Executive Vice‑President, EMEA (3)
Executive Vice‑President, Asia‑Pacific
Executive Vice‑President, Americas
Executive Vice‑President, Chief People & Information Officer
Vice‑President Corporate Strategy & Platform Transformation
Vice‑President Corporate Equity, Marketing & Communications
(1) Mr. Bernard Charlès and Mr. Pascal Daloz were executive officers (dirigeants mandataires sociaux exécutifs) within the meaning of the AFEP‑MEDEF Code.
(2) As social, societal and environmental responsibility (CSR) is the focus of Dassault Systèmes’ strategy and of its achievements, Ms. Florence Verzelen is responsible for
sustainable development matters within the Operations Executive Committee.
(3) Europe Middle East Africa.
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Gender equality objective within governing bodies
Upon the proposal of executive management, the Board of
Directors has set the objective of maintaining a proportion
of women of approximatively 40% within the Executive
Committee.
This proportion is up sharply, from 22% in 2019 to 38.5%
since 2020.
Dassault Systèmes has a strong ambition in terms of gender
equality and promotes the increased representation of
women in top positions of responsibility with specific actions
taken at the recruitment stage and a follow‑up based on
objectives that are assessed annually (see paragraph 5.1.7.5
“Gender Equality within the Executive Team and Top
Positions of Responsibility”).
5.1.3
Compensation Policy for Corporate
Officers (Mandataires Sociaux)
A compensation policy in line
with the corporate interest, strategy
and durability of Dassault Systèmes
long‑term strategy
Dassault Systèmes’
is based on
its purpose, which aims at contributing to sustainable
development in all its components: to provide business and
people with 3DEXPERIENCE universes in order to imagine
sustainable innovations, capable of harmonizing products,
nature and life.
Dassault Systèmes’ compensation policy is defined to be
in the Company’s corporate interest in order to attract,
motivate and retain highly qualified profiles, for whom
competition in the market is intense, to promote the
Company’s success and durability, which depend on the
achievement of its strategic objectives, including in relation
to ESG, as well as its commercial and financial objectives, in
the medium and long term.
its scope and
Any change in the compensation of executive officers is
based on the performance Dassault Systèmes, changes
its market shares. The development
in
of macro‑economic data and data specific to Dassault
Systèmes SE (including the employment and compensation
conditions applicable to employees, in particular the level
of overall salary increases) over the past three years is also
reviewed.
Any significant change in the compensation of executive
officers is thus made over long intervals, in accordance
with the recommendation of the AFEP‑MEDEF Code. The
compensation of the Chairman of the Board of Directors
and the Chief Executive Officer was last increased in 2021,
when the Board of Directors, upon the recommendation of
the Compensation and Nomination Committee, decided
to increase the fixed annual compensation of Mr. Charles
Edelstenne, Chairman of the Board of Directors until
January 8, 2023, and the target annual compensation for
objectives achieved of Mr. Bernard Charlès, Chief Executive
Officer until December 31, 2023, by 4% compared with
2020. These compensations had remained unchanged since
2014 and 2018, respectively.
These increases notably reflected Dassault Systèmes’ new
ambition published in 2020 – creating the virtual twin
experience of the human body – and the expansion of its
market, in particular following the acquisition of MEDIDATA,
which resulted in a doubling of the potential market.
They were decided by taking into account the compensation
conditions of employees:
— the increases in the fixed compensation of the Chairman
of the Board of Directors and the target annual
compensation for objectives achieved of the Chief
Executive Officer were at a level equivalent to half of
the overall increase of Dassault Systèmes SE employees’
salaries between 2018 and 2021;
— the increase in the fixed compensation of the Chairman
of the Board of Directors and the Chief Executive Officer
was effective as of April 1, 2021, the date on which the
fixed compensation of the employees was also increased.
The compensation structure of
the Chief Executive
Officer is the same as that of the Executive team. Their
compensation is composed of a fixed portion and a variable
portion (short term and long term). The variable portion
may represent a significant part of the total compensation
if the annual targets are achieved or outperformed. The
applicable criteria and the targets are reviewed every year
in order to be consistent with Dassault Systèmes’ strategic
orientations. However, the Chief Executive Officer is not
eligible for the profit‑sharing payments from which all
Dassault Systèmes SE’s employees benefit, unlike the other
members of the Executive team attached to France (1).
It should be noted that a change of governance took place
on January 9, 2023, as on this date Mr. Charles Edelstenne
reached the age limit stipulated in the by‑laws for the role of
Chairman of the Board of Directors.
Thus, in accordance with the Board of Directors’ decisions
at its meetings of April 26 and May 19, 2022, on the
recommendation of the Compensation and Nomination
Committee, the following succession plan carefully crafted
over several years in line with Dassault Systèmes’ long‑term
(1) See the specific details for the Deputy CEO & Chief Operating Officer in 2023 in paragraph 5.1.3.3 “Compensation of the Deputy CEO & Chief Operating Officer” of the
Universal registration document 2022.
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2023:
— Mr. Charles Edelstenne, founder of Dassault Systèmes
and Chairman of the Board of Directors since 2002, was
appointed Honorary Chairman and remains a member of
the Board of Directors of Dassault Systèmes;
— Mr. Bernard Charlès, then Vice chairman of the Board
of Directors and Chief Executive Officer, was appointed
Chairman & Chief Executive Officer; and
— Mr. Pascal Daloz, then Chief Operating Officer, was
appointed Deputy CEO & Chief Operating Officer, and also
remains a member of the Dassault Systèmes Board of
Directors.
As the Deputy CEO was appointed for the first time on
January 9, 2023, the compensation policy for executive
officers for 2023
included a section relating to the
compensation of the Deputy CEO (5.1.3.3 “Compensation of
the Deputy CEO & Chief Operating Officer” of the Universal
registration document 2022).
Following the Board of Directors’ decision to once again
separate the functions of Chairman of the Board and Chief
Executive Officer with effect from January 1, 2024, and
to appoint Mr. Pascal Daloz as Chief Executive Officer, the
function of Deputy CEO & Chief Operating Officer has been
abolished (see paragraph 5.1.1.2 “Practices of the Board of
Directors”). This compensation policy for executive officers,
applicable for the 2024 financial year, therefore, no longer
includes a section on the compensation of the Deputy CEO.
Shareholder approval
The compensation policy for the corporate officers of
Dassault Systèmes is set out each year in March by the Board
of Directors, upon the recommendation of the Compensation
and Nomination Committee.
The Committee exercises
its missions with complete
independence based on the benchmarking of compensation
granted to directors, Chairmen of Boards of Directors or
Supervisory Boards, CEOs and Deputy CEOs of companies
in the CAC 40 index mainly, and of compensation granted
to CEOs, who are often also founders, and Deputy CEOs of
international technology companies. The benchmark used
by the Committee is stable. The members of the Committee,
all of whom are independent directors, discuss the subject
of compensation in the absence of the persons concerned,
particularly the executive officers.
In accordance with Article L. 22‑10‑34, II of the French
Commercial Code, the compensation elements paid or
allocated in 2023 to Mr. Charles Edelstenne, Chairman of
the Board of Directors until January 8, 2023, Mr. Bernard
Charlès, Vice chairman of the Board of Directors and Chief
Executive Officer until January 8, 2023, then Chairman &
Chief Executive Officer from January 9, to December 31,
2023, and Mr. Pascal Daloz, Deputy CEO & Chief Operating
Officer from January 9, to December 31, 2023 are subject
to a shareholders’ vote. The payment of the variable or
extraordinary compensation elements resulting from the
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5
implementation of the compensation policy for the 2023
fiscal year applicable to Mr. Bernard Charlès and Mr. Pascal
Daloz, approved by the General Meeting held on May 24,
2023, is thus subject to shareholder approval at the next
General Meeting.
relating
resolutions
In 2023, such
to compensation
elements paid or allocated in 2022 to Mr. Charles Edelstenne
(7th resolution) and to Mr. Bernard Charlès (8th resolution)
were approved at 98.21% and 89.28%, respectively. As
Mr. Pascal Daloz has only been an executive officer since
January 9, 2023, his compensation for the 2022 financial
year has not been submitted to a shareholder vote in 2023,
in accordance with legal requirements.
information
in the corporate
Some of the
governance report is also submitted to a vote of the
shareholders in accordance with Article L. 22‑10‑34, I of the
French Commercial Code.
included
Furthermore, in accordance with Article L. 22‑10‑8 of the
French Commercial Code, the compensation policy for
corporate officers, as set forth in paragraph 5.1.3, will be
subject to the approval of the next General Meeting. Pursuant
to Article L. 22‑10‑34, II of the French Commercial Code, the
payment of variable or extraordinary compensation elements
resulting from the implementation of this compensation
policy for 2024 to Mr. Bernard Charlès, Executive Chairman
of the Board of Directors with effect from January 1, 2024,
and to Mr. Pascal Daloz, Chief Executive Officer with effect
from the same date, will be subject to shareholder approval
at the General Meeting called to approve the financial
statements for the 2024 fiscal year.
For more details on
resolutions proposed, see
paragraph 7.1 “Presentation of the Resolutions Proposed by
the Board of Directors to the General Meeting of May 22,
2024”.
the
5.1.3.1
Compensation Policy Applicable
to the Chairman of the Board of Directors
It should be noted that the Board of Directors, on the
recommendation of the Compensation and Nomination
Committee, decided to once again separate the functions
of Chairman of the Board and Chief Executive Officer as
of January 1, 2024, with Mr. Bernard Charlès remaining
Chairman of the Board and Mr. Pascal Daloz becoming Chief
Executive Officer (see paragraph 5.1.1.2 “Practices of the
Board of Directors”).
This section is therefore applicable to Mr. Bernard Charlès for
the 2024 financial year.
The annual compensation of the Chairman of the Board of
Directors is fixed compensation only, as recommended by
the AFEP‑MEDEF Code. He does not receive any variable
compensation (short‑ or long‑term), nor does he benefit
from any additional retirement plan or indemnity under a
non‑competition or severance payment clause.
He receives benefits in kind corresponding to the use of a
vehicle and mandatory supplemental medical coverage.
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All compensation paid to him by the Company is paid
by Dassault Systèmes SE, a company incorporated under
the
laws of France and main operating company of
Dassault Systèmes.
the Chief Executive Officer
At its meeting on March 12, 2024, the Board of Directors, on
the recommendation of the Compensation and Nomination
Committee, noting the availability of Mr. Bernard Charlès
to devote himself to the very long‑term matters proposed
the
by
Company’s strategy, fundamental research strategy and
the development of governmental or sensitive relations
with certain customers), set the amount of fixed annual
compensation for the Chairman of the Board of Directors at
€2,000,000. See paragraph 5.1.1.2 “Practices of the Board of
Directors” for more details on the role of Mr. Bernard Charlès
since January 1, 2024.
(contribution
to
The amount granted to Mr. Bernard Charlès
in his
capacity as Chairman of the Board of Directors reflects his
entrepreneurial role at Dassault Systèmes for over 35 years,
and the request of the new CEO expressed above in a
context where the size and visibility of Dassault Systèmes
have increased considerably. It also takes into account
compensation practices observed for Chairmen of the Board
of Directors who have previously performed executive
functions, notably in CAC 40 companies.
Mr. Bernard Charlès will not receive any new performance
share allocation in 2024.
However, the shares granted to him in 2020, 2021, 2022
and 2023 will vest, subject to satisfaction of the applicable
performance and continued employment conditions,
in
2024, 2025 and 2026. The continued employment condition
will be considered satisfied if Mr. Bernard Charlès is still
Chairman of the Board of Directors at the end of the presence
period, except in the event of retirement or disability.
These shares were granted as part of the gradual process of
associating Mr. Bernard Charlès with the Company’s capital
with the aim of recognizing his entrepreneurial role for over
35 years with Dassault Systèmes and providing him with an
equity stake comparable to that of founders of companies
in the same sector, and more generally, of his peers in
technology companies around the world. Prior to the IPO
of Dassault Systèmes in 1996, Mr. Bernard Charlès had not
benefited from an equity stake in the Company.
The performance condition governing the vesting of these
shares is based on demanding financial and, since 2023,
non‑financial criteria, with a minimum level of achievement
set at 75% of the target for the non‑financial criterion and
296
80% for the financial criterion. No minimum amount is
therefore guaranteed.
Mr. Bernard Charlès is also required to hold, in registered
form and until he ceases to hold office, 15% of the
performance shares vested since the allocation by the
Board of Directors in 2007. This percentage was calculated
after deducting the number of shares whose sale would be
necessary to pay the taxes, social security contributions
and fees relating to the sale of all such shares. He has also
formally agreed to not enter into forward transactions that
allow him to guarantee a capital gain in the event of the sale
of his performance shares. This prohibition is also stated in
the Dassault Systèmes Insider Trading Rules.
reminder, Charles Edelstenne’s fixed annual
As a
compensation as Chairman of the Board of Directors was
€1,020,000, which has remained unchanged since 2021.
In the event of a change in the Chairman of the Board of
Directors during the year, the Board of Directors will have
the option to adjust the compensation to take into account
the Chairman’s profile and assigned missions, in line with
Dassault Systèmes’ previous practices.
5.1.3.2
Compensation Policy Applicable
to the Chief Executive Officer
Mr. Pascal Daloz was appointed Chief Executive Officer
with effect from January 1, 2024. This section is therefore
applicable to him for the 2024 financial year.
The compensation of the Chief Executive Officer consists
of a fixed and a variable annual compensation as well as
benefits in kind corresponding to mandatory supplemental
medical coverage. In the event of a forced departure, he may
receive an indemnity, subject to the satisfaction of certain
conditions, including a performance condition.
He also receives a performance share allocation.
The Chief Executive Officer does not receive any multi‑year
variable compensation in cash, additional pension plan or
compensation under a non‑competition clause.
All compensation paid by the Company to the Chief
Executive Officer is paid by Dassault Systèmes SE, a company
incorporated under the laws of France and main operating
company of Dassault Systèmes.
allocates
Additionally, only Dassault Systèmes SE
performance shares to the Chief Executive Officer, who is not
granted any share subscription or purchase options.
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Fixed and variable annual compensation
The Chief Executive Officer receives a target annual
compensation for objectives achieved comprised of a fixed
portion for 50%, paid monthly, and a variable portion for
50%, paid (subject to the approval of the General Meeting of
Shareholders) annually in relation to the achievement of the
performance criteria previously set by the Board of Directors.
For 2024, these criteria, as set out below by the Board of
Directors, are in line with Dassault Systèmes’ strategic
orientations in the short, medium and long term. Therefore,
they contribute to the objectives of the compensation policy
of Dassault Systèmes to promote the Company’s success and
durability.
These criteria include an ESG indicator, representing 15% of
the variable portion. The purely qualitative portion of these
criteria is limited to 15%, compared with 20% in 2022.
The ESG criteria and associated targets are reviewed
annually to ensure consistency with Dassault Systèmes’ ESG
strategy for 2027. For more details on Dassault Systèmes’
ESG strategy for 2027, see paragraph 1.8 “Environmental,
Social, and Governance Performance” and Chapter 2 “Social,
Societal and Environmental Responsibility”.
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Performance criteria triggering the payment
of variable compensation to the Chief Executive Officer
Dassault Systèmes’ ESG indicator based on four environmental,
social and governance criteria*:
Type
Weighting
Quantifiable
15%
Minimum level
of achievement
— employee pride and satisfaction rates measured
Quantifiable
via an annual internal survey
— proportion of women on the Board of Directors,
the Executive team and among People Managers
— share of total IFRS revenue (software and services)
deemed eligible within the meaning of EU Taxonomy
Quantifiable
Quantifiable
— reduction in greenhouse gas emissions in line with the targets
Quantifiable
submitted to the Science Based Targets initiative (SBTi):
1/4
1/4
1/4
1/4
– *emissions from Dassault Systèmes’ own operations
(scopes 1 and 2) and business travel and commuting (scope 3)
– *percentage of suppliers (by emissions weight)
who have set science‑based targets for reduction.
Diluted net earnings per share on a non‑IFRS consolidated basis in line
with the objectives communicated by Dassault Systèmes for the year
Quantifiable
20%
Company efficiency processes, measured by the fact that the non‑IFRS
operating margin is in line with the objectives announced by Dassault
Systèmes for the year
Quantifiable
15%
Minimum level
of achievement:
between 75%
and 100%
of target,
depending
on the criterion.
Minimum
payment level
of 60% and,
in the event
of an outper‑
formance,
up to a maxi‑
mum of 140%.
Competitive position, measured by relative revenue growth
compared to competitors and consistency of the growth in cloud
and 3DEXPERIENCE revenue with the targets announced
by Dassault Systèmes for the year
Composition of product portfolio
Implementation of Dassault Systèmes’ short‑, medium‑
and long‑term strategy contributing to future growth
*
These ESG criteria will be calculated at constant scope.
Quantifiable
15%
Quantifiable
20%
Qualitative
15% ‑
Cap
140%
140%
140%
140%
140%
140%
140%
140%
140%
140%
To determine whether the above criteria are met, the
in
Compensation and Nomination Committee verifies
March of Year N+1 to what extent the targets set in March
of Year N have been met. The level of achievement of the
objectives determines the amount actually paid for the
variable compensation, which can result in a payment below
the target, or above the target up to 140% overall and per
criterion. No minimum payment is guaranteed and, in the
event of an outperformance, the allocated amount is capped.
the amount of which will depend upon the achievement of
the targets and will be subject to the approval of the General
Meeting of Shareholders called to approve the 2024 financial
statements.
As a reminder, Bernard Charlès’s target annual compensation
for objectives achieved as Chief Executive Officer was
€2,890,000, comprising a fixed portion of €1,445,000 and a
variable portion capped at 140% of the fixed portion, which
has remained unchanged since 2021.
There is no mechanism for the return of the variable portion
of the Chief Executive Officer’s compensation.
Performance shares
During its March 12, 2024 meeting, the Board of Directors
set the amount of the annual target compensation with
targets achieved for the Chief Executive Officer for 2024 at
€2,000,000, composed of a fixed amount of €1,000,000 and
a variable portion of no more than 140% of the fixed portion,
At its meeting on March 12, 2024, the Board of Directors
decided that 450,000 performance shares will be granted
in 2024 to the Chief Executive Officer, per the authorization
granted by the General Meeting of Shareholders.
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The vesting of these shares, at the end of a three‑year
vesting period,
is subject to conditions of continued
employment and performance that are identical to those
stipulated for the vesting of shares granted to Dassault
Systèmes’ eligible employees (excluding MEDIDATA).
The performance conditions defined by the Board are based
on demanding financial and non‑financial criteria, with no
minimum amount guaranteed. It therefore contributes to the
objectives of the compensation policy of Dassault Systèmes
to promote the Company’s success and durability.
The Board of Directors set these criteria as follows for 2024.
Performance criteria triggering the vesting
of performance shares granted
to the Chief Executive Officer
ESG indicator based on three environmental,
social and governance criteria*:
Type
Weighting Minimum level of achievement
Quantifiable
20% Minimum level of achievement for each
Cap
100%
of the three ESG criteria and sub‑criteria:
between 75% and 100% of the target.
For each criterion, a “payment” level
(60% minimum and, in the event
of an outperformance, up to a maximum
of 140%) is determined based on the level
of achievement. This “payment” level
will be equal to zero if the minimum level
is not achieved.
The number of shares vested for this
tranche will depend on the weighted
average of the “payment” levels
for all ESG criteria and sub‑criteria.
140%
140%
140%
See above
– proportion of women on the Board
of Directors, the Executive team
and among People Managers
Quantifiable
1/3
– share of total IFRS revenue
Quantifiable
1/3
(software and services) deemed eligible
within the meaning of EU Taxonomy
– reduction in greenhouse gas emissions
Quantifiable
1/3
in line with the targets submitted to the
Science Based Targets initiative (SBTi):
– *emissions from Dassault Systèmes’ own
operations (scopes 1 and 2) and business
travel and commuting (scope 3)
– *percentage of suppliers
(by emissions weight) who have set
science‑based targets for reduction.
Growth in diluted net earnings per share
on a non‑IFRS consolidated basis, neutralized
from currency effects (hereinafter “EPS”):
EPS achieved in 2026 compared with EPS
achieved in 2023
*
These ESG criteria will be calculated at constant scope.
Quantifiable
80% Minimum level of achievement:
100%
80% of the target.
No performance shares may be acquired
for this tranche if the achievement level
is below 80%.
If the achievement level is between 80%
and 100%, the number of shares granted
will progress linearly from 50% to 100%.
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No performance shares may be acquired by the Chief
Executive Officer if the achievement level of the targets
for growth in EPS and for each of the ESG criteria is below
the minimum levels set by the Board referred to above. If
the achievement level is greater than 100%, the number
of shares vested will be capped at 100%. There is no
compensation possible between financial and non‑financial
criteria.
If the continued employment condition is not met, except in
the case of retirement or disability, no shares will be acquired
by the Chief Executive Officer.
There is no mandatory holding period after the vesting
of these shares. However, in accordance with the AFEP‑
MEDEF Code and the French Financial Markets Authority
(AMF) recommendations, the Board of Directors has, with
each allocation, set the percentage of shares thus acquired
that the Chief Executive Officer will be required to keep in
registered form for as long as he holds office.
Accordingly, on March 12, 2024, the Board of Directors
decided that this percentage would be equal, as it has been
every year, to 15% of the shares vested. This percentage is
calculated after deduction of the number of shares that it
would be necessary to sell in order to pay taxes due, social
charges and expenses related to the sale of the total number
of shares vested.
The Chief Executive Officer cannot enter into forward
transactions that allow him to guarantee a capital gain in the
event of the sale of his performance shares. He has formally
agreed to this prohibition which is also stated in the Dassault
Systèmes Insider Trading Rules.
Benefits in kind
The Chief Executive Officer receives benefits
in kind
corresponding to mandatory supplemental medical coverage.
Indemnity due in the event of imposed departure
The Chief Executive Officer may receive compensation for
the termination of his functions whose principle and amount
are subject to certain conditions, in particular performance
in accordance with the French Commercial
conditions,
Code and the AFEP‑MEDEF Code. Thus, the indemnity
would be due in case of a change in control or strategy duly
acknowledged by the Board of Directors, which results in
an imposed departure in the subsequent 12 months. In the
event of forced departure due to poor results at Dassault
Systèmes or mismanagement, the indemnity may not be
paid.
The indemnity would also not be due in the event that the
Chief Executive Officer were to leave Dassault Systèmes on
his own initiative to take a new position elsewhere, or were
to be assigned a new position within the Company, or if he
were to receive retirement benefits shortly after leaving.
In the event the indemnity is paid to the Chief Executive
Officer, the Board may, by way of exception, reduce
the amount or decide that it is not due in the event of
(i) misconduct other than in connection with his corporate
functions and incompatible with the normal performance of
his term of office, or (ii) events seriously damaging the image
300
of Dassault Systèmes and significantly reducing the share
price.
The amount of the indemnity due to the Chief Executive
Officer, in the event of the termination of his functions, will
be equivalent to a maximum of two years of compensation
and will depend on satisfying the performance conditions
established for calculating his variable compensation. The
amount paid would be calculated pro rata with respect to the
percentage of variable compensation which was paid during
the three years preceding his departure as compared to the
targeted variable compensation for such years, using the
following formula:
— the aggregate gross compensation (including variable
in kind and
compensation but excluding benefits
directors’ compensation) due in connection with his term
of office as director for the two years ended prior to the
date of departure;
— multiplied by the quotient of (i) the amount of variable
compensation actually paid during the three fiscal years
ended prior to the date of departure with regard to
their respective years of reference (numerator), divided
by (ii) the amount of target variable compensation
determined for each of these years by the Board of
Directors on the basis of achievement of the objectives
set for Dassault Systèmes (denominator).
The indemnity is thus subject to performance conditions
the variable
related
compensation.
targets fixed
to achieving
for
5.1.3.3
Directors’ Compensation
Each director of Dassault Systèmes SE, including Bernard
Charlès and Pascal Daloz, is entitled to compensation in
respect of their office (formerly known as “directors’ fees”).
The General Meeting of May 19, 2022 increased the
maximum annual amount of compensation granted to
directors at €900,000 for the current and future fiscal years,
until a further decision by the General Meeting on this issue.
This proposed increase notably follows the appointment of a
lead independent director whose role is compensated.
In terms of criteria for allocating the total amount among
the directors, Dassault Systèmes is focused on attracting,
motivating and retaining highly qualified profiles.
Subject to approval by the General Meeting of May 22,
2024 of the compensation policy for corporate officers, the
meeting of the Board of Directors of March 12, 2024 decided
to amend the allocation criteria as follows: €20,000 per
director, an additional €20,000 for the Chairman of the
Board, an additional €20,000 for the Chairman of the
Audit Committee, an additional €10,000 for the Chairman
of the Compensation and Nomination Committee and the
Chairman of the Scientific Committee, and an additional
€20,000 for the lead independent director (these amounts
being paid in proportion to the actual term in office during
the year); €4,500 per member for physical presence at a
Board or Committee meeting; and €2,250 per member for
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participation in a Board or Committee conference call or
video‑conference.
In the event of the presence of the members of the Board
of Directors at all the scheduled meetings of the Board, the
variable part is thus structurally higher than the fixed part.
5.1.3.4
Terms of office, Employment
Contracts or Service Agreements
with the Company
The term of office of the corporate officers of Dassault
Systèmes SE is four years. They are revocable under the
conditions provided by law.
The employment agreement of Mr. Pascal Daloz, who had
been an employee of Dassault Systèmes SE since 2001, was
terminated in 2023 after Mr. Pascal Daloz submitted a letter
of resignation from his salaried position on March 6, 2023.
This resulted in the termination of his employment contract
on May 25, 2023.
Apart from directors representing employees, no directors of
Dassault Systèmes SE have an employment contract.
The employment contracts of Mr. Tanneguy de Fromont de
Bouaille and Mr. Hervé Andorre have an indefinite term. They
are subject to legal conditions, in particular with regard to
notice and termination.
No contract for the provision of services has been concluded
by the Company with one of its corporate officers.
5.1.4
Summary of the Compensation and Benefits due
to Corporate Officers (Mandataires Sociaux)
Ratios between the compensation paid
to executive corporate officers of Dassault
Systèmes SE and that paid to employees
who are not corporate officers
Below, Dassault Systèmes SE publishes the ratios required
by Article L. 22‑10‑9 of the French Commercial Code relating
to the compensation of corporate officers of listed companies
following the AFEP guidelines on compensation multiples as
of February 2021.
Dassault Systèmes SE is the Company’s main operating
company, with its workforce representing 85.2% of the
workforce in France as of December 31, 2023. As Dassault
Systèmes SE’s equity ratios are representative, the definition
of a larger scope for the purpose of presenting those ratios is
not relevant.
are
included
compensation
The elements
the
as
compensation and benefits paid in respect of fiscal year N
and comprising the fixed part, the variable part paid during
fiscal year N, the extraordinary compensation (where
applicable) paid during fiscal year N, the compensation
allocated to directors in respect of their term of office as a
director as soon as these elements were received by the
executive officer and paid during fiscal year N, performance
shares granted during fiscal year N and valued at their IFRS
incentives),
value, and employee saving (profit‑sharing,
employer contribution and benefits in kind.
Compensation is calculated on a full‑time equivalent basis of
Dassault Systèmes SE employees present in 2022 and 2023
(excluding apprentices).
The compensation elements taken into account for Mr.
Charles Edelstenne, Mr. Bernard Charlès and Mr. Pascal Daloz
are presented in Table 1 of this chapter.
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Charles Edelstenne, Chairman of the Board of Directors until January 8, 2023
As Mr. Charles Edelstenne stepped down as Chairman of the Board of Directors on January 9, 2023, Dassault Systèmes SE has
not deemed it relevant to publish the following ratio for 2023.
Ratio compared to the average compensation
paid to employees of Dassault Systèmes SE
(Year‑on‑year change)
Ratio compared to the median compensation
paid to employees of Dassault Systèmes SE
(Year‑on‑year change)
2023
2022
2021
2020
2019
NA
NA
NA
NA
9.6
+1.1%
12.8
‑5.2%
9.5
‑1.0%
13.5
+5.5%
9.6
+3.2%
12.8
0.0%
9.3
‑5.1%
12.8
‑3.8%
Bernard Charlès, Vice chairman of the Board of Directors and Chief Executive Officer until
January 8, 2023, then Chairman & Chief Executive Officer from January 9, 2023
It should be noted that:
— Mr. Bernard Charlès, Vice chairman of the Board of
Directors and Chief Executive Officer until January 8,
2023, held the position of Chairman & Chief Executive
Officer from January 9, to December 31, 2023; and
— the Board of Directors decided, on the recommendation
of the Compensation and Nomination Committee, that
Mr. Bernard Charlès’s compensation in 2023 for his new
position as Chairman & Chief Executive Officer would be
identical to the amount he received in his role as Chief
Executive Officer.
As the position of Chairman & Chief Executive Officer only
existed in 2023, and as Mr. Bernard Charlès’ compensation
has not changed despite the change in position, Dassault
Systèmes SE has not deemed it relevant to present the ratio
below by attaching it to the position of Chairman & Chief
Executive Officer.
Mr. Bernard Charlès’s compensation as Chairman & Chief
Executive Officer is presented in the same way as that of
the Vice chairman of the Board of Directors and the Chief
Executive Officer, allowing for a comparison with previous
years.
Ratio compared to the average compensation
paid to employees of Dassault Systèmes SE
(Year‑on‑year change)
Ratio compared to the median compensation
paid to employees of Dassault Systèmes SE
(Year‑on‑year change)
2023
2022
2021
2020
2019
25.4
‑11.0%
34.2
‑10.1%
28.5
+4.0%
38.1
‑1.0%
27.4
‑1.8%
38.5
+3.5%
27.9
+4.9%
37.2
+1.6%
26.6
‑2.9%
36.6
‑1.1%
The compensation of Mr. Bernard Charlès taken into account
to calculate the equity ratio presented above does not
include the portion represented by the shares granted to
him as part of the gradual process of associating him with
the Company’s capital that began several years ago, with
the aim of ultimately recognizing his entrepreneurial role
for over 35 years with Dassault Systèmes and providing
him with an equity stake comparable to that of founders of
companies in the same sector, or more generally, of his peers
in technology companies around the world.
Prior to the IPO of Dassault Systèmes in 1996, Mr. Bernard
Charlès had not benefited from an equity stake in the
Company.
However, the valuation of the shares granted to Mr. Bernard
Charlès within the framework of the gradual process of
associating him with the capital of Dassault Systèmes SE
would bring the equity ratio to the following values:
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Reflecting the gradual process of association
to the capital of Dassault Systèmes SE
Ratio compared to the average compensation
paid to employees of Dassault Systèmes SE
(Year‑on‑year change)
Ratio compared to the median compensation
paid to employees of Dassault Systèmes SE
(Year‑on‑year change)
2023
2022
2021
2020
2019
383.9
+31.7%
518.3
+33.2%
291.4
‑25.3%
389.0
‑29.6%
390.0
+103.9%
552.2
+116.9%
191.3
‑14.2%
254.6
‑16.9%
223.0
+2.0%
306.5
+3.8%
For 2021, the significant variations observed are explained by the change in Dassault Systèmes’ share price, which has an
impact on the valuation of performance shares taken into account in the calculation of the ratio.
Pascal Daloz, Deputy Ceo & Chief operating Officer since January 9, 2023
It should be noted that the position of Deputy CEO & Chief Operating Officer was created in 2023, with the appointment of Mr.
Pascal Daloz on January 9, 2023.
The calculation of the following ratio takes into account all compensation elements paid to Mr. Pascal Daloz in 2023, including
his employment contract which runs until the General Meeting of May 24, 2023.
Ratio compared to the average compensation paid to employees of Dassault Systèmes SE
(Year‑on‑year change)
Ratio compared to the median compensation paid to employees of Dassault Systèmes SE
(Year‑on‑year change)
2023
119.8
NA
161.8
NA
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Annual trends in the compensation paid to executive corporate officers, in the Company’s performance,
and in the average compensation paid to Company employees over the past 5 years
The share price and net earnings per share shown in the table below reflect the five‑for‑one stock split of the nominal value of
Dassault Systèmes’ shares on July 7, 2021.
(in euros)
Compensation paid to the Chairman of the Board
(Year‑on‑year change)
Compensation of the Vice chairman of the Board
of Directors and Chief Executive Officer,
then Chairman & Chief Executive Officer (7)
(Year‑on‑year change)
Compensation of the Deputy CEO
& Chief Operating Officer (8)
(Year‑on‑year change)
Share price on December 31 of the reporting year
(Year‑on‑year change)
Net earnings per share (non‑IFRS)
(Year‑on‑year change)
Average compensation paid to the Company’s
employees (other than executive officers)
on a full‑time equivalent basis
(Year‑on‑year change)
2023
NA
NA
2022
2021
2020
2019
1,087,150
+1.5%
1,070,895
+3.8%
1,031,645
+0.4%
1,027,243
0.0%
3,099,235
‑4.5%
3,243,587
+5.0%
3,089,077
+3.1%
2,997,377
+1.8%
2,942,933
+3.1%
14,643,547
NA
44.24
+32.1%
1.20
+6.2%
33.50
‑36.0%
1.13
+18.9%
52.31
+57.4%
0.95
+26.7%
33.23
+13.4%
0.75
+2.7%
29.31
+41.3%
0.73
+17.7%
122,211
+7.6%
113,623
+0.8%
112,665
+5.0%
107,267
‑3.1%
110,644
+6.1%
The above compensation of the Vice chairman of the Board of Directors and Chief Executive Officer, then Chairman & Chief
Executive Officer, does not include the shares granted to Mr. Bernard Charlès as part of the gradual process of associating him
with the Company’s capital. The evolution of the valuation of these shares is:
Value of the shares granted to the Vice chairman
of the Board of Directors and Chief Executive Officer,
then Chairman & Chief Executive Officer,
as part of the gradual process of associating him
with the Company’s capital (1)
(Year‑on‑year change)
43,815,000 (2) 29,865,000 (3) 40,845,000 (4) 17,526,600 (5) 21,734,506 (6)
+8.9%
+133.0%
+46.7%
‑26.9%
‑19.4%
(1) Value based on the method chosen for the consolidated financial statements before the spreading of the expense and after taking into account the performance criteria.
(2) 1,500,000 2023‑B shares granted in 2023.
(3) 1,500,000 2022‑B shares granted in 2022.
(4) 300,000 2021‑B shares granted in 2021. This quantity was multiplied by five to attain a total of 1,500,000 following the five‑for‑one stock split of the nominal value of
Dassault Systèmes shares that occurred on July 7, 2021.
(5) 300,000 2020‑B shares granted in 2020. This quantity was multiplied by five to attain a total of 1,500,000 following the five‑for‑one stock split of the nominal value of
Dassault Systèmes shares that occurred on July 7, 2021.
(6) 300,000 2019‑B shares granted in advance in 2018. This quantity was multiplied by five to attain a total of 1,500,000 following the five‑for‑one stock split of the nominal
value of Dassault Systèmes shares that occurred on July 7, 2021.
(7) As the position of Chairman & Chief Executive Officer only existed in 2023, and Mr. Bernard Charlès’s compensation has not changed despite the change in position, the
compensation of Mr. Bernard Charlès as Chairman & Chief Executive Officer is presented in the same way as that of the Vice chairman of the Board of Directors and the
Chief Executive Officer, allowing for a comparison with previous years.
(8) This amount takes into account all compensation elements paid to Mr. Pascal Daloz in 2023, including in respect of his employment contract which runs until the General
Meeting of May 24, 2023, as well as the valuation of performance shares granted in fiscal 2023.
The tables below provide a summary, in accordance with the
recommendations of the French Financial Markets Authority
(AMF) and the AFEP‑MEDEF Code, of the compensation and
benefits of any kind paid to the corporate officers of Dassault
Systèmes SE, pursuant to Article L. 22‑10‑9 of the French
Commercial Code (see also paragraphs 5.1.3 “Compensation
Policy for Corporate Officers (Mandataires Sociaux)” and 5.1.5
“Interests of Executive Management and Employees in the
Share Capital of Dassault Systèmes SE”).
The total compensation of the corporate officers paid
and awarded during fiscal year 2023 complies with the
compensation policy adopted in 2022 and the compensation
policy adopted
in 2023 without any changes. This
compensation contributes to the long‑term performance of
the Company. With respect to the Chief Executive Officer, the
variable portion of his compensation is conditional on achieving
demanding performance criteria and is in line with Dassault
Systèmes’ strategic orientations in the short, medium and long
term. Payment of this variable portion is also subject to approval
by the General Meeting of Shareholders.
For fiscal year 2023, the amount of compensation allocated to
the directors of Dassault Systèmes SE in respect of their roles as
directors totaled €776,750, of which €320,000 was allocated
on the basis of their position (fixed portion) and €456,750 on
the basis of their attendance at meetings of the Board of
Directors and its committees (variable portion). In accordance
with the AFEP‑MEDEF Code, the variable portion of the
compensation allocated to the directors is thus preponderant.
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Table 1: Summary of compensation and options and shares granted to each executive officer
(in euros)
Charles Edelstenne, Chairman of the Board of Directors until January 8, 2023
Compensation due for the year (detailed in Table 2) (1)
Value of the multi‑year variable compensation paid during the year
Value of the stock options granted during the year (detailed in Table 4)
Value of the performance shares granted during the year (detailed in Table 6)
Value of the other long‑term compensation plans
Bernard Charlès, Vice chairman of the Board of Directors and Chief Executive Officer
until January 8, 2023, then Chairman & Chief Executive Officer from January 9, 2023
Compensation due for the year (detailed in Table 2) (1)
Value of the multi‑year variable compensation paid during the year
Value of the stock options granted during the year (detailed in Table 4)
Value of the performance shares granted during the year (detailed in Table 6)
Value of the other long‑term compensation plans
2023
2022
66,760
None
None
None
None
1,084,900
None
None
None
None
2,976,047
None
None
None
See table
below
3,097,337
None
None
None
See table
below
(1) All compensation paid by the Company to Mr. Charles Edelstenne and Mr. Bernard Charlès is paid by Dassault Systèmes SE, a company incorporated under the laws of
France and the principal operating company.
Value of the shares granted to Bernard Charlès, Vice chairman of the Board and Chief Executive
Officer until January 8, 2023, then Chairman & Chief Executive Officer from January 9,
2023, as part of the gradual process of associating him with the Company’s capital
These shares are granted to Mr. Bernard Charlès, Vice
chairman of the Board and Chief Executive Officer until
January 8, 2023 and then Chairman & Chief Executive
Officer from January 9, 2023, as part of the gradual process
of associating him with the Company’s capital that began
several years ago, with the aim of ultimately recognizing
his entrepreneurial role for over 35 years with Dassault
Systèmes and providing him with an equity stake comparable
to that of founders of companies in the same sector, and
more generally, of his peers in technology companies around
the world.
(in euros)
2023
2022
Bernard Charlès, Vice chairman of the Board of Directors and Chief Executive Officer
until January 8, 2023, then Chairman & Chief Executive Officer from January 9, 2023
Value of the shares granted (1)
43,815,000 (2) 29,865,000 (3)
(1) Value based on the method chosen for the consolidated financial statements before the spreading of the expense and after taking into account the performance criteria.
(2) 1,500,000 2023‑B shares granted in 2023.
(3) 1,500,000 2022‑B shares granted in 2022.
5
(in euros)
Pascal Daloz, Deputy CEO & Chief Operating Officer since January 9, 2023
Compensation due for the year (detailed in Table 2) (1)
Value of the multi‑year variable compensation paid during the year
Value of the stock options granted during the year (detailed in Table 4)
Value of the performance shares granted during the year (detailed in Table 6)
Value of the other long‑term compensation plans
2023
1,529,994
None
None
13,144,500 (1) (2)
None
(1) All compensation paid and all performance shares granted by the Company to Mr. Pascal Daloz are paid or granted by Dassault Systèmes SE, a company incorporated
under the laws of France and the principal operating company.
(2) 450,000 2023‑A shares granted in 2023.
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The 1,500,000 shares granted to Mr. Bernard Charlès
(referred to as “2023‑B”) and the 450,000 shares granted to
Mr. Pascal Daloz (referred to as “2023‑A”) on May 24, 2023,
represent 9.73% of the global allocation decided by the
General Meeting of May 24, 2023 (1).
These 2023‑A and 2023‑B shares will vest on May 26,
2026, subject, in accordance with the AFEP‑MEDEF Code,
to the satisfaction of a continued employment condition
and a performance condition, described below, identical to
those provided for the benefit of Dassault Systèmes eligible
employees (excluding MEDIDATA). The vesting of these
shares is subject to the following criteria:
— an ESG indicator based on three environmental, social
and governance criteria, representing 20% of the total
weighting of the criteria: the proportion of women on the
Board of Directors, the Executive team and the People
Managers; the share of total IFRS revenue (software
and services) considered eligible pursuant to the EU
Taxonomy; the reduction in greenhouse gas emissions in
line with targets submitted to the Science Based Targets
initiative (SBTi); and
— growth in the non‑IFRS EPS (neutralized from currency
effects) between the EPS achieved in 2025 and the EPS
achieved in 2022, which represents 80% of the total
weighting of the criteria.
these criteria, see
For more details on
the 2023
compensation policy for executive officers, paragraph 5.1.3.2
“Compensation of Mr. Bernard Charlès, Vice chairman of
the Board of Directors and Chief Executive Officer until
January 8, 2023, then Chairman & Chief Executive Officer” of
the Universal registration document 2022.
No performance shares may be acquired by Mr. Bernard
Charlès and Mr. Pascal Daloz if the achievement level of
the targets for growth in EPS and for each of the ESG
criteria is below the minimum levels set by the Board. If
the achievement level is greater than 100%, the number of
shares vested will be capped at 100%.
They may not acquire any 2023‑A or 2023‑B if the condition
of presence is not met, except in case of retirement or
disability.
(1) The General Meeting of May 24, 2023 set the maximum number of shares that may be granted to executive officers at 35% of the decided global allocation amount,
assessed on the date of the allocation, i.e. 7,012,653 shares on May 24, 2023.
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Table 2: Summary of the compensation of each executive officer
The gross compensation before tax of the executive officers is set forth in the table below. All compensation paid by the
Company to the executive officers is paid by Dassault Systèmes SE, a company incorporated under the laws of France, and
main operating company of Dassault Systèmes.
The executive officers do not receive any compensation from Dassault Systèmes SE other than that shown in the table below.
(in euros)
Charles Edelstenne, Chairman of the Board of Directors
until January 8, 2023
Fixed compensation (1)
Annual variable compensation
Multi‑year variable compensation
Extraordinary compensation
Compensation allocated to directors in respect of their directorship
Benefits in kind (2)
TOTAL
Bernard Charlès, Vice chairman of the Board of Directors
and Chief Executive Officer until January 8, 2023,
then Chairman & Chief Executive Officer from January 9, 2023 (3)
2023
2022
Amounts due
for the year
Amounts paid
in 2023
Amounts due
for the year
Amounts paid
in 2022
19,318
None
None
None
47,438
4
19,318
None
None
None
64,750
4
1,020,000
None
None
None
64,750
150
1,020,000
None
None
None
67,000
150
66,760
84,072
1,084,900
1,087,150
Fixed compensation
Annual variable compensation (4)
Multi‑year variable compensation
Extraordinary compensation
Compensation allocated to directors in respect of their directorship
Benefits in kind (8)
1,445,000
1,445,000(5)
None
None
66,562
19,485
1,445,000
1,590,000 (6)
None
None
44,750
19,485
1,445,000
1,445,000
1,590,000 (6) 1,734,000 (7)
None
None
47,000
17,587
None
None
44,750
17,587
TOTAL
2,976,047
3,099,235
3,097,337
3,243,587
Pascal Daloz, Deputy CEO & Chief Operating Officer
since January 9, 2023
The table below takes into account all compensation elements
paid to Mr. Pascal Daloz in 2023, including those in respect
of his employment agreement which ran until the General
Meeting of May 24, 2023.
Fixed compensation
Annual variable compensation (4)
Multi‑year variable compensation
Extraordinary compensation
Compensation allocated to directors in respect of their directorship
Benefits in kind (9)
Employment benefits (profit‑sharing and vacation pay)
TOTAL
700,224
735,000(5)
None
None
47,000
7,091
40,679
700,224
546,000 (6)
None
None
44,750
7,091
200,982
1,529,994
1,499,047
(1) GIMD paid Mr. Charles Edelstenne, in 2023 and 2022, gross compensation of €1,066,990 and €1,016,179 respectively as Chairman of GIMD.
(2) These benefits in kind are linked to mandatory supplemental medical coverage. Furthermore, GIMD granted, in 2023 and 2022, benefits in kind relating to the use of a car
for Mr. Charles Edelstenne, valued at €4,920 and €10,326 respectively.
(3) With the exception of the compensation paid in respect of his term of office as a Director, Dassault Systèmes SE has paid Mr. Bernard Charlès each of the compensation
elements referred to in the table above in respect of his office as Chief Executive Officer of Dassault Systèmes. In 2023, Mr. Bernard Charlès did not receive any
compensation in consideration of his role as Vice chairman of the Board of Directors until January 8, 2023, nor for his role as Chairman of the Board of Directors since
January 9, 2023.
(4) The rules governing the determination of variable compensation of the Chairman & Chief Executive Officer and of the Deputy CEO are described below.
(5) Variable portion due for 2023 and paid in 2024.
(6) Variable portion due for 2022 and paid in 2023.
(7) Variable portion due for 2021 and paid in 2022.
(8) These benefits in kind are linked to mandatory supplemental medical coverage, and use of a vehicle made available to Mr. Bernard Charlès by Dassault Systèmes SE.
(9)
These benefits in kind correspond to the payment of travel expenses and mandatory supplemental medical coverage.
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Conditions for determining the variable portion
of Mr. Bernard Charlès’s and Mr. Pascal Daloz’s
compensation due in respect of financial year 2023
In the case of the Chairman & Chief Executive Officer, a
review of the achievement of the performance criteria set
in 2023 measured the variable portion of the compensation
for 2023 at 103.15%. However, after discussing with Mr.
Bernard Charlès and as suggested by him, the Compensation
and Nomination Committee recommended to the Board of
the Directors to reduce this percentage from 103.15% to
100% of the target annual variable compensation.
At its meeting on March 12, 2024, upon the recommendation
of the Compensation and Nomination Committee and
further to the review of the achievement of the performance
criteria set in 2023, the Board set the variable portion of the
Chairman & Chief Executive Officer’s compensation to be paid
in 2024 in respect of 2023, subject to the approval of the
General Meeting of Shareholders, at €1,445,000, equivalent
to 100% of the annual target variable compensation. This
amount represents 100% of his fixed compensation paid
in 2023. The Chairman & Chief Executive Officer’s variable
compensation and fixed compensation for the 2023 fiscal
year thus represent respectively 48.6% and 48.6% of
his total compensation (for further details on the total
compensation, see paragraph 5.1.4 Table 2 “Summary of the
compensation of each executive officer”).
In the case of the Deputy CEO, a review of the achievement
of the performance criteria set in 2023 measured the
variable portion of the compensation for 2023 at 103.15%.
However, after discussing with Mr. Bernard Charlès and
as suggested by him, the Compensation and Nomination
Committee recommended to the Board of the Directors to
increase this percentage from 103.15% to 105% of the target
annual variable compensation, in order to take account of
the successful governance transition and of the Company’s
compensation practices and long‑term outlook regarding the
office of Chief Executive Officer, which cannot be assessed
solely on a strictly annual basis.
At its meeting on March 12, 2024, upon the recommendation
of the Compensation and Nomination Committee and
further to the review of the achievement of the performance
criteria set in 2023, the Board set the variable portion of the
Chairman & Chief Executive Officer’s compensation to be paid
in 2024 in respect of 2023, subject to the approval of the
General Meeting of Shareholders, at €735,000, equivalent
to 105% of the annual target variable compensation. This
amount represents 105% of his fixed compensation paid
in 2023. The Chairman & Chief Executive Officer’s variable
compensation and fixed compensation for the 2023 fiscal
year thus represent respectively 48% and 45.8% of his total
compensation (for further details on the total compensation,
see paragraph 5.1.4 Table 2 “Summary of the compensation
of each executive officer”).
The applicable performance criteria categories are set forth
in the following table with an indication, for each of them,
of their respective weight and the level of payment resulting
from the level of satisfaction. The level of achievement of the
objectives can result in a payment below the target, or above
the target up to 140%.
The minimum level of achievement was between 75% and
100% of target, depending on the criterion.
The associated payment level for each criterion was a
minimum of 60% and, in the event of an outperformance, a
maximum of 140%.
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Performance criteria categories
Type
Weighting
Target 2023
Actual 2023
Quantifiable
15%
Level
of payment
108.1%
Dassault Systèmes’ ESG indicator
based on four environmental,
social and governance criteria(1) :
– employee pride and satisfaction
rates measured via an annual
internal survey
– proportion of women on the Board
of Directors, the Executive team
and among People Managers
{Weighting: 1/3 each}
– share of total IFRS revenue
(software and services) deemed
eligible within the meaning
of EU Taxonomy.
– reduction in greenhouse gas
emissions in line with the targets
submitted to the Science Based
Targets initiative (SBTi):
– *emissions from Dassault
Systèmes’ own operations
(scopes 1 and 2)(2)
– *emissions from business travel
and commuting (scope 3),
– *percentage of suppliers (by
emissions weight) who have
set science based targets for
reduction
Diluted net earnings per share
on a non‑IFRS consolidated basis
in line with the objectives communicated
by Dassault Systèmes for the year
Company efficiency processes,
measured by the fact that
the non‑IFRS operating margin
is in line with the objectives announced
by Dassault Systèmes for the year
81%
80.9%
99%
40%
40%
24.3%
67%
Scopes 1 & 2:
‑17.5%
Scope 3:
‑10.6%
Suppliers:
‑30%
50%
38.5%
24.5%
67.3%
‑70.6
‑52.1
37.0%
105.8%
100.9%
126.7%
Quantifiable
20%
1.18
1.20
103.4%
Quantifiable
15%
32.3%
32.4%
102%
(1) These indicators are calculated at constant scope.
(2) The payment level was reduced from 140% to 100%, by decision of the Compensation and Nomination Committee , to encourage the Company to maintain its efforts in
terms of energy efficiency, excluding purchases of certificates which have increased in the framework for the Company's implementation of its carbon neutrality policy.
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Performance criteria categories
Type
Weighting
Target 2023
Actual 2023
Quantifiable
15%
Competitive position, measured
by relative revenue growth compared
to competitors and consistency
of the growth in cloud
and 3DEXPERIENCE revenue
with the targets announced
by Dassault Systèmes for the year
Composition of product portfolio
Quantifiable
15%
Implementation of Dassault Systèmes’
short‑, medium‑
and long‑term strategy contributing to
future growth
Qualitative
20%
Dassault Systèmes
outperformed on
growth in one of
the three sectors.
The cloud revenue
as a proportion
of total software
revenue was lower
than the target.
For confidentiality
reasons, no further
details are given on
the performance.
Roll‑out plan
and 6.5 flagship
projects
completed.
The Compensation
and Nomination
Committee set (i)
a target for Dassault
Systèmes’ revenue
growth compared
with revenue growth
for the three sectors
and (ii) a target
for cloud revenue
as a proportion
of total software
revenue.
For confidentiality
reasons, no further
details are given
on this criterion.
The Compensation
and Nomination
Committee defined
achievement targets
(i) for the solutions
roll‑out plan and
(ii) for flagship
projects.
The Compensation and Nomination
Committee recognized the continued
implementation in 2023 of the major
strategic directions approved
by the Board of Directors.
For confidentiality reasons, no further
details are given on the actions taken
and achievements made in 2023.
Level
of payment
53.8%
135.7%
105%
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Table 3: Compensation received by non‑executive directors
Non‑executive directors do not receive any compensation
from the Company other than that indicated in the table
below, except for Mr. Tanneguy de Fromont de Bouaille and
Mr. Hervé Andorre (1), who also received compensation in
respect of their employment contracts.
All compensation paid by the Company to the non‑executive
directors is paid by Dassault Systèmes SE, a company
incorporated under the laws of France, and main operating
company of Dassault Systèmes.
The compensations presented in the table below are gross compensations.
(in euros)
Hervé Andorre* (1)
(Director representing employees)
Geneviève Berger
(Director since May 24, 2023)
Xavier Cauchois
Pascal Daloz **
(Executive director since January 9, 2023)
Catherine Dassault
Laurence Daures
Odile Desforges
Soumitra Dutta
Tanneguy de Fromont de Bouaille** (2)
(Director representing employees)
Marie‑Hélène Habert‑Dassault (3)
Toshiko Mori
(Director until May 24, 2023)
TOTAL
2023
2022
Amounts due
for the year
Amounts
paid in 2023
Amounts due
for the year
Amounts
paid in 2022
47,000
44,750
44,750
47,000
39,164
96,250
‑
47,000
119,750
76,250
75,000
47,000
47,000
21,336
615,750
‑
89,500
44,750
42,500
113,500
69,500
79,500
44,750
44,750
‑
89,500
44,750
42,500
113,500
69,500
79,500
44,750
44,750
‑
100,750
47,000
47,000
113,250
78,500
75,000
47,000
44,750
53,750
582,500
53,750
582,500
44,750
598,000
(1) The compensation due to Hervé Andorre, director representing employees, in respect of his term of office as a Director was paid to Ensemble à DS.
(2) The compensation due to Mr. Tanneguy de Fromont de Bouaille, director representing employees, in relation to his term of office as a Director was paid to the CFE‑CGC.
(3) GIMD paid Ms. Marie‑Hélène Habert‑Dassault, in 2023 and 2022, compensation of €404,153 and €385,384 respectively for her role as Director of Communication and
Patronage of GIMD. GIMD granted her, in 2023 and 2022, benefits in kind relating to the use of a car, valued at €1,389 and €1,584, respectively. In 2023 and 2022, GIMD
paid Ms. Marie‑Hélène Habert‑Dassault €60,000 and €40,000 respectively for her role as a member and Chair of the Supervisory Board of GIMD.
* Mr. Hervé Andorre also received compensation, in 2023 and 2022, under his employment contract (fixed and variable compensation, payment related to the use of a
vehicle and benefits in kind related to compulsory supplementary medical coverage).
** Mr. Tanneguy de Fromont de Bouaille also received compensation, in 2023 and 2022, under his employment contract (fixed and variable compensation and benefits in
kind related to compulsory supplementary medical coverage).
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(1) Mr. Tanneguy de Fromont de Bouaille and Mr. Hervé Andorre are directors representing employees.
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Table 4: Share subscription or purchase options granted in 2023 to each executive
officer by the issuer and by any of dassault systèmes companies
(in euros)
Charles Edelstenne
Bernard Charlès
Pascal Daloz
TOTAL
No. and date
of the plan
Type of options
(purchase or
subscription)
Value of
the options
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
Number
of options
granted
in 2023
‑
‑
‑
‑
Exercise
price
Exercise
period
‑
‑
‑
‑
‑
‑
‑
‑
Table 5: Share subscription or purchase options exercised during 2023 by each executive officer
(in euros)
Charles Edelstenne
Bernard Charlès
Pascal Daloz
TOTAL
No. and date
of the plan
Number
of options
exercised
in 2023
Exercise price
‑
‑
‑
‑
‑
‑
‑
‑
‑
‑
Table 6: Shares granted in 2023 to each executive officer
by the issuer and by any of dassault systèmes companies
Number
of performance
shares granted
in 2023
No. and date
of the plan
Value of
the shares
(in euros) (1)
Date of
acquisition
Date of
availability
Performance
conditions
Charles Edelstenne
Bernard Charlès
Pascal Daloz
TOTAL
‑
2023‑B 05/24/2023
2023‑A 05/24/2023
‑
1,500,000 (2)
450,000
1,950,000
‑
43,815,000
13,144,500
56,959,500
‑
05/26/2026
05/26/2026
‑
05/26/2026
05/26/2026
‑
Yes
Yes
(1) Value based on the method chosen for the consolidated financial statements before the spreading of the expense and after taking into account the performance criteria.
(2) These shares were granted to Mr. Bernard Charlès, Vice chairman of the Board and Chief Executive Officer until January 8, 2023 and then Chairman & Chief Executive
Officer from January 9, 2023, as part of the gradual process of associating him with the Company’s capital that began several years ago, with the aim of ultimately
recognizing his entrepreneurial role for over 35 years with Dassault Systèmes and providing him with an equity stake comparable to that of founders of companies in the
same sector, and more generally, of his peers in technology companies around the world.
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Table 7: Shares that became available during 2023 for each executive officer
On June 29, 2023, 750,000 shares granted to Mr. Bernard
Charlès (known as “2021‑B”) and 200,000 shares granted
to Mr. Pascal Daloz (known as “2021‑A”), on June 29, 2021,
were definitively vested at the end of the vesting period,
with the continued employment and performance conditions
having been satisfied.
Note that plans 2021‑A and 2021‑B were split into two
tranches:
— the first tranche, corresponding to 50% of the shares
granted (1), could vest at the end of a two‑year vesting
period, subject to meeting the continued employment
condition and a condition of growth of the non‑IFRS EPS
(neutralized from currency effects) achieved in 2022
compared with the non‑IFRS EPS achieved in 2020;
— the second tranche, corresponding to 50% of the
shares granted (2), will vest after a four‑year vesting
period, subject to meeting the continued employment
condition and a condition of growth of the non‑IFRS EPS
(neutralized from currency effects) achieved in 2024
compared with the non‑IFRS EPS achieved in 2020.
It should be noted that a performance share plan with a
vesting period of less than three years (in this case, two years
for the first tranche) is exceptional for Dassault Systèmes’
normal practice. This is because performance shares granted
in 2020 could only vest after a four‑year vesting period (i.e.
in 2024), whereas previous practice involved three‑year
vesting periods. This meant that no shares were scheduled
to vest in 2023 for any of the employee beneficiaries (2). For
the record, performance share plan conditions are the same
for both executive officers and employee beneficiaries (2).
In 2021, therefore, the Board of Directors decided, on an
exceptional basis and in order to retain employees, that the
vesting period would average three years, with a two‑year
vesting period for the first tranche and a four‑year vesting
period for the second tranche. The performance criterion,
which is the same as the criterion for Dassault Systèmes
employees3, was expressed as follows for the first tranche:
Indicator
Target
Minimum level of achievement and vesting scale
Result
Non‑IFRS EPS growth rate,
neutralized from currency effects,
achieved in 2022 compared
with the non‑IFRS EPS achieved
in 2020
25% growth
over the period
(two years)
Minimum level of achievement: 80%
of target (i.e. 20% growth over the period) –
no performance shares shall vest if
the achievement level is less than 80% of target
If the achievement level is between 80%
and 100% (or above 100%), the number
of shares that can vest will progress linearly
from 80% to 100%
Growth
of the non‑IFRS EPS,
neutralized from
currency effects,
over the period: 43%
I.e. a payout level
equal to 100%
Since the number of shares that may vest is capped at 100%, the Board of Directors noted, on the recommendation of the
Compensation and Nomination Committee, that the 750,000 shares granted to Mr. Bernard Charlès vested on June 29, 2023,
and the 200,000 shares granted to Mr. Pascal Daloz vested on June 29, 2021.
No. and date
of the plan
Number of shares
that became available
in 2023
5
Bernard Charlès (1)
Pascal Daloz
TOTAL
2021‑B (Tranche 1) 06/29/2021
2021‑A (Tranche 1) 06/29/2021
750,000
200,000
950,000
(1) Such shares were granted to Mr. Bernard Charlès, Vice chairman of the Board and Chief Executive Officer until January 8, 2023 then Chairman & Chief Executive Officer
from January 9, 2023 as part of the gradual process of associating him with the Company’s capital, with the aim of ultimately recognizing his entrepreneurial role for over
35 years with Dassault Systèmes and providing him with an equity stake comparable to that of founders of companies in the same sector, and more generally, of his peers
in technology companies around the world. A portion of such shares is subject to lock‑up (see paragraph 5.1.3.2 “Compensation of Mr. Bernard Charlès, Vice chairman of
the Board of Directors and Chief Executive Officer until January 8, 2023, then Chairman & Chief Executive Officer” of the Universal registration document 2022).
I.e. 750,000 shares for Mr. Bernard Charlès and 200,000 shares for Mr. Pascal Daloz factoring in the split in the nominal value of the Dassault Systèmes share in July 2021.
(1)
(2) Hors MEDIDATA.
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From a general perspective, Mr. Bernard Charlès retains the
Dassault Systèmes shares vested at the end of the vesting
period for the granted shares. Thus, in 2023, Mr. Bernard
Charlès retained the shares vested in June 2023 (“2021‑B
(tranche 1)” plan).
On December 31, 2022, Mr. Bernard Charlès held
24,452,205 shares,
representing 1.83% of Dassault
Systèmes’ share capital.
On December 31, 2023, Mr. Bernard Charlès held
25,202,205 shares,
representing 1.88% of Dassault
Systèmes’ share capital.
Table 8: History of share subscription and purchase options granted
See paragraph 5.1.5 “Interests of Executive Management and Employees in the Share Capital of Dassault Systèmes SE” below.
Table 9: History of performance shares granted
See paragraph 5.1.5 “Interests of Executive Management and Employees in the Share Capital of Dassault Systèmes SE” below.
Table 10: Variable multi‑annual compensation granted to each executive officer
The Table 10 “Summary of variable multi‑annual compensations for each executive officer” recommended by the AFEP‑
MEDEF Code is not relevant as no such variable multi‑annual compensations have been granted to any executive officer of
Dassault Systèmes SE.
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Table 11: Monitoring of the AFEP‑MEDEF’s Recommendations
As indicated in the table below, Dassault Systèmes SE complies with the main recommendations of the AFEP‑MEDEF Code
regarding compensation and benefits granted to executive officers.
Indemnities or benefits
due or which may become
due in the event of
termination of
or change in functions
Additional
retirement plan
Indemnities related
to a non‑competition
clause
Employment agreement
Executive officers
Yes
Bernard Charlès
Executive Chairman of the Board
of Directors since 01/01/2024
Chairman & Chief Executive Officer
from 01/09/2023 to 12/31/2023
Executive Chairman of the Board
of Directors since (1st appointment):
01/09/2023
End of term of office: General Meeting
called to approve the financial
statements for the year ending
December 31, 2025
Pascal Daloz
Chief Executive Officer since
01/01/2024
Deputy CEO & Chief Operating Officer
from 01/09/2023 to 12/31/2023
CEO since (1st appointment):
01/01/2024
Yes
No
X
No
X
Yes
Yes
No
X
No
X
X*
X
X**
X***
*
**
The employment agreement of Mr. Pascal Daloz, who had been an employee of Dassault Systèmes SE since 2001, was terminated in 2023 after Mr. Pascal Daloz
submitted a letter of resignation from his salaried position on March 6, 2023. This resulted in the termination of his employment contract on May 25, 2023.
The conditions for payment and the amount of the indemnities likely to be due are described in paragraph 5.1.3.2 “Compensation Policy Applicable to the Chief Executive
Officer”.
*** Mr. Pascal Daloz’s employment agreement provides for payment of a non‑compete indemnity under the terms and conditions described in paragraph 5.1.3.3
“Compensation of the Deputy CEO & Chief Operating Officer” of the Universal registration document 2022. Mr. Pascal Daloz’s employment agreement was terminated on
May 25, 2023. Since that date, Mr. Pascal Daloz has not been entitled to any non‑compete indemnity.
There is no specific additional retirement plan for the corporate officers. The companies controlled by Dassault Systèmes SE
have not paid any compensations, or granted any other benefits in kind or granted shares or subscription options to the
executive officers mentioned above.
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5.1.5
Interests of Executive Management and Employees
in the Share Capital of Dassault Systèmes SE
The Executive team of Dassault Systèmes is given long‑term
incentives notably through grants of Dassault Systèmes
performance shares or options to subscribe to Dassault
Systèmes SE shares to be associated with the development
and performance of the Company. In general, performance
shares or share subscription options may be granted to
key employees, the number granted to each of them
being dependent on individual performance and level of
responsibility.
In accordance with the AFEP‑MEDEF Code, the Board of
Directors shall endeavor to allocate the performance shares
and share subscription options during identical periods,
usually in May after the General Meeting of Shareholders.
There may have been rare exceptions to this rule, given
the recent changes in the tax and legal frameworks, or the
compliance with the rules regarding knowledge of inside
information by the corporate officers. This rule was complied
with in 2023 with regard to executive officers, as Mr.
Bernard Charlès and Mr. Pascal Daloz benefited from only
one performance share allocation on May 24, 2023.
Employee shareholding plan
In order to allow the implementation of an employee
shareholding plan, the General Meeting of May 19, 2022
delegated to the Board of Directors its authority to decide
on an increase in the share capital of Dassault Systèmes SE
of a maximum nominal amount of €1 million reserved (i) for
the members of the company savings plans of the Company
and/or its affiliated companies within the meaning of Articles
L. 225‑180 of the French Commercial Code and L. 3344‑1 of
the French Labor Code and (ii) for a category of beneficiaries
(17th and 18th resolutions).
On December 9, 2022 the Board of Directors used this
authorization to introduce an employee shareholding plan
in 23 countries (covering nearly 99% of the company’s
increase of
workforce), which took the form of an
the nominal amount of the corporate share capital of
€468,851.50, through the issuing of 4,688,515 new shares
with a nominal value of €0.10 each, as confirmed by a
decision of the Chief Executive Officer on June 15, 2023. This
enabled employees to subscribe to a leveraged shareholding
plan with a 15% discount and offering a capital guarantee in
euros (see Note 7 to the consolidated financial statements).
Options to subscribe to Dassault Systèmes SE shares
As of December 31, 2023, there were 13 active share
subscription option plans for the benefit of certain Dassault
Systèmes managers and employees. The exercise price of
these options was set without a discount for all the plans.
The General Meeting of May 24, 2023 authorized the Board
of Directors to grant options to subscribe or to purchase
Company shares for a period of 24 months, provided that
the total of all outstanding options does not give a right to
a number of shares representing more than 3% of Dassault
Systèmes SE’s share capital. The Board of Directors used this
authorization to grant 2,140,126 share subscription options
(“2023–01” options) to 813 beneficiaries on May 24, 2023,
the exercise of which is subject to a continued employment
condition and to performance conditions for each of the
reference years of 2023, 2024 and 2025.
The new shares created by the exercise of options between
January 1 and the date of the Annual General Meeting
deciding on the allocation of profit related to the most
recently completed fiscal year are entitled to receive the
dividend distributed with respect to that year. As a result,
the new shares are traded on the same line as the previously
existing shares.
However, the new shares created as from the day after this
Annual General Meeting do not have a right to receive this
dividend. Those shares are temporarily listed on a second
trading line until the date the shares trade ex‑dividend, i.e.
without the right to receive the dividend to be distributed on
Dassault Systèmes shares.
The following table provides certain information on the plans
in effect during 2023.
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History of share subscription and purchase options granted
(Corresponding to Table 8 of French Financial Markets Authority (AMF) Position‑Recommendation No. 2021‑02)
For all the grants prior to July 7, 2021, the figures in this table
(options, shares and exercise price) reflect the five‑for‑one
stock split of the nominal value of Dassault Systèmes shares
effective on that date, and the correlative multiplication of
the number of shares that may be exercised.
For more visibility, this table is divided into two parts: (1)
plans from 2015 to 2020, and (2) plans from 2020 and 2023,
the totals being mentioned in the second part for all plans.
Stock option plan
2015‑01
2016‑01
2017‑01
2018‑01
2019‑01
2020‑01
Total
General Meeting
05/30/2013
05/26/2016
05/26/2016
05/26/2016
05/23/2019 05/26/2020
Board of Directors
09/04/2015
05/26/2016
05/23/2017
05/22/2018
07/01/2019 05/26/2020
Total number of shares
to be subscribed
pursuant to options
exercise
– by corporate
officers
Starting point
for exercising
the options
9,827,775
9,738,925
10,251,850
9,926,005
8,161,870
7,451,580
N/A
N/A
N/A
N/A
N/A
N/A
09/04/2016
05/26/2017
05/23/2018
05/22/2019
05/23/2020 05/26/2021
Expiration date
09/03/2025
05/25/2026
05/22/2027
05/21/2028
05/22/2029 05/25/2030
Exercise price (in euros)
12.40
13.80
16.40
22.00
28.00
29.09
Terms of exercise
See note (1)
See note (2)
See note (3)
See note (4)
See note (5)
See note (6)
Total number of shares
subscribed pursuant
to options exercised
as of 12/31/2023
Cumulative number
of options canceled
or lapsed as of
12/31/2023
Number of options
outstanding as of
12/31/2023
7,149,022
6,608,701
5,851,866
5,046,981
3,110,256
1,347,686
1,742,505
1,743,600
1,984,965
1,296,135
935,440
896,071
936,248
1,386,624
2,415,019
3,582,889
4,116,174
5,207,823
See table
below.
See table
below.
See table
below.
See table
below.
See table
below.
(1) The 2015‑01 options are exercisable by one‑third tranches as from September 4, 2016, 2017 and 2018, respectively, provided that the beneficiary fulfills the condition of
presence and the performance condition relating to the diluted net earnings per share on a non‑IFRS consolidated basis (hereinafter referred to as the “EPS”), and/or the
achievement of the target for his or her respective brand.
(2) The 2016‑01 options are exercisable by one‑third tranches as from May 26, 2017, 2018 and 2019, respectively, provided that the beneficiary fulfills the condition of
presence and performance condition relating to the EPS (neutralized from currency effects), and/or the achievement of the target for his or her respective brand.
(3) The 2017‑01 options are exercisable by one‑third tranches as from May 23, 2018, 2019 and 2020, respectively, provided that the beneficiary fulfills the condition of
presence and performance condition relating to the EPS (neutralized from currency effects), and/or the achievement of the target for his or her respective brand.
(4) The 2018‑01 options are exercisable by one‑third tranches as from May 22, 2019, 2020 and 2021, respectively, provided that the beneficiary fulfills the condition of
presence and performance condition relating to the EPS (neutralized from currency effects), and/or the achievement of the target for his or her respective brand.
(5) The 2019‑01 options are exercisable by one‑third tranches as from May 23, 2020, 2021 and 2022, respectively, provided that the beneficiary fulfills the condition of
presence and the performance condition relating to the EPS (neutralized from currency effects), and/or the achievement of the target for his or her respective brand.
(6) The 2020‑01 options are exercisable by one‑third tranches as from May 26, 2021, 2022, 2023 and 2024, respectively, provided that the beneficiary fulfills the condition
of presence and the performance condition relating to the EPS (neutralized from currency effects), and/or the achievement of the target for his or her respective brand.
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Stock option plan
2020‑M‑01 2020‑M‑02 2020‑M‑03 2020‑M‑04
2021‑01
2022‑01
2023‑01
General Meeting
05/23/2019 05/26/2020 05/26/2020 05/26/2020 05/26/2020 05/26/2020 05/24/2023
Board of Directors
03/11/2020 05/26/2020 09/23/2020 12/04/2020 06/29/2021 05/19/2022 05/24/2023
Total
(including the
table above)
Total number of shares
to be subscribed
pursuant to options
exercise
65,965
3,292,050
175,875
57,045
2,257,255
1,989,674 2,140,126
65,335,995
– by corporate officers
N/A
N/A
N/A
N/A
N/A
NA
NA
N/A
Starting point for
exercising the options
03/31/2021 05/26/2021 09/23/2021 12/04/2021 06/29/2022 05/19/2023 05/24/2024
Expiration date
03/10/2030 05/25/2030 09/22/2030 12/03/2030 06/28/2031 05/18/2032 05/23/2033
Exercise price (in euros)
26.20
29.09
31.57
30.43
41.32
37.17
39.40
Terms of exercise
See note (1) See note (2) See note (3) See note (4) See note (5) See note (6) See note (7)
Total number of shares
subscribed pursuant
to options exercised
as of 12/31/2023
Cumulative number
of options canceled
or lapsed as of
12/31/2023
Number of options
outstanding as of
12/31/2023
30,085
1,345,335
20,880
20,615
27,043
23,158
‑
30,581,628
18,055
864,970
24,900
36,430
319,273
121,325
6,913
9,990,582
17,825
1,081,745
130,095
‑
1,910,939
1,845,191 2,133,213
24,763,785
(1) The 2020‑M‑01 options are exercisable by one‑third tranches from March 31, 2021, 2022 and 2023, respectively, provided that the beneficiary fulfills the condition of
presence and performance condition relating to the EPS (neutralized from currency effects).
(2) The 2020‑M‑02 options are exercisable by one‑third tranches from May 26, 2021, 2022 and 2023, respectively, provided that the beneficiary fulfills the condition of
presence and the performance condition relating to the EPS (neutralized from currency effects).
(3) The 2020‑M‑03 options are exercisable by one‑third tranches from September 23, 2021, 2022 and 2023, respectively, provided that the beneficiary fulfills the condition
of presence and the performance condition relating to the EPS (neutralized from currency effects).
(4) The 2020‑M‑04 options are exercisable by one‑third tranches from December 04, 2021, 2022 and 2023, respectively, provided that the beneficiary fulfills the condition
of presence and the performance condition relating to the EPS (neutralized from currency effects).
(5) The 2021‑01 options are exercisable by one‑third tranches as from June 29, 2022, 2023, 2024 and 2025, respectively, provided that the beneficiary fulfills the condition
of presence and the performance condition relating to the EPS (neutralized from currency effects), and/or the achievement of the target for his or her respective brand.
(6) The 2022‑01 options are exercisable by one‑third tranches as from May 19, 2023, 2024 and 2025, respectively, provided that the beneficiary fulfills the condition of
presence and the performance condition relating to the EPS (neutralized from currency effects), and/or the achievement of the target for his or her respective brand.
(7) The 2023‑01 options are exercisable by one‑third tranches as from May 24, 2024, 2025 and 2026 respectively, provided that the beneficiary fulfills the continued
employment condition and a performance condition relating to the EPS (neutralized from currency effects) and the achievement of targets related to seven ESG criteria.
For information regarding the dilutive effect on share capital
by the exercise of options, see also paragraph 6.2.1 “Share
Capital at December 31, 2023”.
As of December 31, 2023, no corporate officer held share
subscription options.
For information regarding the equity interests in Dassault
Systèmes SE of the corporate officers, see paragraphs 5.1.1
“Composition and Practices of the Board of Directors” and
6.3 “Information about the Shareholders” in this Universal
registration document.
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Share Subscription and purchase options of the top ten employees of Dassault Systèmes
who are not corporate officers and the options they exercised during 2023
(Corresponding to Table 9 of French Financial Markets Authority (AMF) Position‑Recommendation No. 2021‑02)
For all the grants prior to July 7, 2021, the figures in this table
(options, shares and exercise price) reflect the five‑for‑one
stock split of the nominal value of Dassault Systèmes shares
effective on that date, and the correlative multiplication of
the number of shares that may be exercised.
The following table shows, on aggregate, the total number
and weighted average exercise price of options granted
to, and options exercised by, the ten Dassault Systèmes
employees who obtained or exercised the largest number of
Dassault Systèmes stock options during 2023 and who are
not corporate officers of Dassault Systèmes SE.
Total number
of options
Weighted
average price
per option
Plan
2015‑01
Plan
2016‑01
Plan
2017‑01
Plan
2018‑01
Plan
2019‑01
Plan
2020‑01
Plan
2020‑M
Options exercised
in 2023 by the ten
employees
who subscribed
for the largest
number of options
After
the splitting
of the nominal
value:
€24.91
919,359
83,190
70,830
37,910
82,660
275,014
151,805
217,950
Total number
of options
Weighted
average price
per option
Plan
2023‑01
Options granted
in 2023 to the ten
employees
with the largest
number of options
After
the splitting
of the nominal
value:
€39.40
286,125
286,125
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Performance shares
The General Meeting of May 24, 2023 authorized the Board
of Directors to grant Dassault Systèmes shares for up to a
maximum of 1.5% of Dassault Systèmes SE’s capital at the
date of the grant by the Board (i.e. 20,036,153 shares as of
May 23, 2023). The Board, at its meeting of May 24, 2023,
used this authorization to allocate (i) 3,707,133 “2023‑A”
performance shares to 1,436 beneficiaries, all employees of
the Company excluding MEDIDATA, as well as (ii) 1,500,000
“2023‑B” shares to Mr. Bernard Charlès.
In connection with the share buyback program authorized
by the General Meeting, on May 24, 2023 the Board of
Directors granted 926,310 “2023‑M1” performance shares
to 516 beneficiaries, all employees of MEDIDATA. On
September 20, 2023 the Board of Directors granted 28,003
“2023‑M2” performance shares to 5 beneficiaries, all
employees of MEDIDATA.
None of the beneficiaries of the “2023‑A” and “2023‑B”
plans is a beneficiary of the “2023‑M1” plan or “2023‑M2”
plan.
The following table provides certain information on the plans
in effect during 2023.
History of performance share allocations
(Corresponding to Table 10 of French Financial Markets Authority (AMF) Position‑Recommendation No. 2021‑02)
For all the grants prior to July 7, 2021, the number of shares
in this table reflect the five‑for‑one stock split of the nominal
value of Dassault Systèmes shares effective on that date,
and the correlative multiplication of the number of shares
that may be acquired.
For more visibility, this table is divided into two parts: (1) the
plans for allocations from 2020 to 2022 and (2) the plans for
allocations from 2022 (continued) and 2023, the totals being
mentioned in the second part for all the plans.
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Plan Number
2020‑A
2020‑M
2021‑A
2021‑M1
2021‑M2
2022‑A1
Total
General Meeting
05/22/2018
05/22/2018
05/26/2021
(8)
(8) 05/26/2021
05/26/2020
05/26/2020
06/29/2021
06/29/2021
09/22/2021 05/19/2022
4,024,830
283,605
3,707,845
876,855
16,982
3,690,907
Date of the Board
meeting
Total number of shares
granted
– Of which
the following
numbers were
granted to
corporate officers (1)
400,000
Pascal Daloz
400,000
‑
‑
400,000
‑
‑
450,000
400,000
06/29/2023
1st tranche
06/30/2025
2nd tranche
‑
06/29/2022
1st tranche
06/29/2023
2nd tranche
07/01/2024
3rd tranche
06/30/2025
4th tranche
450,000
‑
09/22/2022
1st tranche
09/22/2023
2nd tranche
09/23/2024
3rd tranche
09/22/2025
4th tranche 05/19/2025
Vesting date
of shares
Date of end
of holding period
Performance
conditions
Number of shares
vested as
of 12/31/2023
Cumulative number
of shares canceled
or null and void as
of 12/31/2023
Performance shares
remaining at the end
of 2023
05/26/2024
05/26/2023
None
None
None
None
None
None
Yes (2)
Yes (3)
Yes (4)
Yes (5)
Yes (6)
Yes (7)
2,000
236,470
1,811,166
380,849
8,416
2,950
112,415
47,135
105,743
202,425
1,527
56,249
3,910,415
‑
1,790,936
293,581
7,039
3,631,708
See table
below.
See table
below.
See table
below.
See table
below.
See table
below.
(1) No 2020‑A, 2020‑M, 2021‑A, 2021‑M1, 2021‑M2, 2022‑A1, 2022‑M1, 2022‑A2, 2022‑M2, 2023‑A, 2023‑M1 and 2023‑M2 performance shares were granted to
corporate officers (excluding the directors representing employees) other than Mr. Pascal Daloz. For share allocations to Mr. Bernard Charlès, see the table below “History
of share allocations to Mr. Bernard Charlès, Vice chairman of the Board and Chief Executive Officer until January 8, 2023, in respect of the gradual process of associating
Mr. Bernard Charlès with the Company’s capital”.
(2) The 2020‑A Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2024: growth in EPS compared to that achieved in 2019. The Board, having granted these shares, has set two limits: if the
growth of the EPS is at least equal to the upper limit, all the shares will be vested; If this is below the lower limit, no shares will be vested. Between these two thresholds,
the number of shares granted will vary linearly.
(3) The 2020‑M Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2023: double growth criterion for non‑IFRS revenue of the MEDIDATA brand compared to that achieved in 2019 and
increase in the percentage of the non‑IFRS operating margin of the MEDIDATA brand compared to 2019.
(4) The 2021‑A Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2022 and 2024 for each of the tranches: growth in EPS compared to that achieved in 2020. The Board, having granted these
shares, has set two limits: if the growth of the EPS is at least equal to the upper limit, all the shares will be vested; If this is below the lower limit, no shares will be vested.
Between these two thresholds, the number of shares granted will vary linearly.
(5) The 2021‑M1 Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2021, 2022, 2023 and 2024 for each of the tranches: growth in EPS compared to that achieved in 2020 and double growth
criterion for the non‑IFRS revenue of the MEDIDATA brand compared to that achieved in 2020 and an increase in the percentage of the non‑IFRS operating margin of the
MEDIDATA brand compared to 2020.
(6) The 2021‑M2 Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2021, 2022, 2023 and 2024 for each of the tranches: growth in EPS compared to that achieved in 2020 and double growth
criterion for the non‑IFRS revenue of the MEDIDATA brand compared to that achieved in 2020 and an increase in the percentage of the non‑IFRS operating margin of the
MEDIDATA brand compared to 2020.
(7) The 2022‑A1 Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2025: growth in EPS compared to that achieved in 2021. The Board, having granted these shares, has set two limits: if the
growth of the EPS is at least equal to the upper limit, all the shares will be vested; If this is below the lower limit, no shares will be vested. Between these two thresholds,
the number of shares granted will vary linearly.
(8) Shares granted by the buyback programs authorized by the General Meeting.
5
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
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Corporate Governance
The Board’s Corporate Governance Report
Plan Number
2022‑M1
2022‑A2
2022‑M2
2023‑A
2023‑M1
2023‑M2
Total
(including the
table above)
General Meeting
Date of the Board
meeting
Total number
of shares granted
– Of which
the following
numbers were
granted to
corporate officers (9)
Pascal Daloz
Vesting date
of shares
Date of end
of holding period
Performance
conditions
Number of shares
vested as of
12/31/2023
Cumulative number
of shares canceled
or null and void as
of 12/31/2023
Performance shares
remaining at the end
of 2023
(16)
05/26/2021
(16)
05/24/2023
(16)
(16)
05/19/2022
09/21/2022
09/21/2022
05/24/2023
05/24/2023 09/20/2023
817,809
28,523
24,264
3,707,133
926,310
28,003
18,133,066
‑
‑
‑
‑
‑
‑
450,000
450,000
‑
‑
‑
‑
1,700,000
1,700,000
05/19/2023
1st tranche
05/20/2024
2nd tranche
05/19/2025
3rd tranche
09/22/2025
09/21/2023
1st tranche
09/23/2024
2nd tranche
09/22/2025
3rd tranche
05/26/2026
05/24/2024
1st tranche
05/26/2025
2nd tranche
05/26/2026
3rd tranche
09/20/2024
1st tranche
09/22/2025
2nd tranche
09/21/2026
3rd tranche
None
None
None
None
None
None
Yes (10)
Yes (11)
Yes (12)
Yes (13)
Yes (14)
Yes (15)
246,339
171,068
‑
‑
7,847
‑
‑
714
12,730
34,726
‑
‑
2,696,037
744,732
400,402
28,523
15,703
3,694,403
891,584
28,003
14,692,297
(9) No 2020‑A, 2020‑M, 2021‑A, 2021‑M1, 2021‑M2, 2022‑A1, 2022‑M1, 2022‑A2, 2022‑M2, 2023‑A, 2023‑M1 and 2023‑M2 performance shares were granted to
corporate officers (excluding the directors representing employees) other than Mr. Pascal Daloz. For share allocations to Mr. Bernard Charlès, see the table below “History
of share allocations to Mr. Bernard Charlès, Vice chairman of the Board and Chief Executive Officer until January 8, 2023, in respect of the gradual process of associating
Mr. Bernard Charlès with the Company’s capital”.
(10) The 2022‑M1 Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2022, 2023 and 2024 for each of the tranches: growth in EPS compared to that achieved in 2021 and double growth
criterion for the non‑IFRS revenue of the MEDIDATA brand compared to that achieved in 2021, and an increase in the percentage of the non‑IFRS operating margin of the
MEDIDATA brand compared to 2021.
(11) The 2022‑A2 Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2025: growth in EPS compared to that achieved in 2021. The Board, having granted these shares, has set two limits: if the
growth of the EPS is at least equal to the upper limit, all the shares will be vested; If this is below the lower limit, no shares will be vested. Between these two thresholds,
the number of shares granted will vary linearly.
(12) The 2022‑M2 Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2022, 2023 and 2024 for each of the tranches: growth in EPS compared to that achieved in 2021 and double growth
criterion for the non‑IFRS revenue of the MEDIDATA brand compared to that achieved in 2021, and an increase in the percentage of the non‑IFRS operating margin of the
MEDIDATA brand compared to 2021.
(13) The 2023‑A Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2026: growth in EPS compared to that achieved in 2022 and the achievement of targets related to seven ESG criteria.
(14) The 2023‑M1 Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2023, 2024 and 2025 for each of the tranches: growth in EPS compared to that achieved in 2022, double growth criterion
for the non‑IFRS revenue of the MEDIDATA brand compared to that achieved in 2022, an increase in the percentage of the non‑IFRS operating margin of the MEDIDATA
brand compared to 2022, and the achievement of targets related to seven ESG criteria.
(15) The 2023‑M2 Shares will only vest at the end of the vesting period, provided that the beneficiary fulfills a condition of presence and the following performance condition,
the achievement of which will be measured in 2023, 2024 and 2025 for each of the tranches: growth in EPS compared to that achieved in 2022, double growth criterion
for the non‑IFRS revenue of the MEDIDATA brand compared to that achieved in 2022, an increase in the percentage of the non‑IFRS operating margin of the MEDIDATA
brand compared to 2022, and the achievement of targets related to seven ESG criteria.
(16) Shares granted by the buyback programs authorized by the General Meeting.
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The Board’s Corporate Governance Report
5
Grant of rights to receive Dassault
Systèmes SE shares in replacement of
rights to receive MEDIDATA shares
As part of the acquisition of MEDIDATA Solutions, Inc.,
and subject to its closing, the Board of Directors approved,
on June 11, 2019, the grant of rights to receive Dassault
Systèmes SE shares in replacement of the rights to receive
MEDIDATA shares that had been granted to some of its
employees and executives. This grant amounted to a
maximum of 1,894,649 Dassault Systèmes SE shares,
corresponding to 9,473,245 shares following the five‑for‑one
stock split of the nominal value of Dassault Systèmes shares
that occurred on July 7, 2021, and will be definitively vested
if the beneficiaries are still employees upon the expiration of
the vesting periods.
The weighted average vesting period of these shares is
0.41 years from the closing date of the acquisition of
MEDIDATA, and the last vesting date of these shares is
September 2023.
The weighted average grant‑date fair value of the Dassault
Systèmes SE shares was:
— €134.15, corresponding to €26.83 following the nominal
value of Dassault Systèmes shares being split by five on
July 7, 2021, for equity awards which also gave right to all
dividends paid during the vesting period;
— €132.80 corresponding to €26.56 following the nominal
value of Dassault Systèmes shares being split by five on
July 7, 2021, for the other equity awards.
History of share allocations to Mr. Bernard Charlès, in respect of the gradual
process of associating Mr. Bernard Charlès with the Company’s capital
(See also paragraph 5.1.3.2 “Compensation of Mr. Bernard Charlès, Vice chairman of the Board of Directors & Chief Executive
Officer until January 8, 2023, then Chairman & Chief Executive Officer” of the Universal registration document 2022)
Plan Details
General Meeting
Board of Directors
2020‑B
2021‑B
2022‑B
2023‑B
05/22/2018
05/26/2021
05/26/2021
05/24/2023
05/26/2020
06/29/2021
05/19/2022
05/24/2023
Total number of shares granted
1,500,000 (1)
1,500,000 (1)
1,500,000
1,500,000
Vesting date of shares
Date of end of holding period (2)
Performance conditions
06/29/2023
1st tranche
06/30/2025
2nd tranche
05/26/2024
None
Yes (3)
None
Yes (4)
Number of shares vested by Bernard Charlès as of 12/31/2023
‑
750 000
05/19/2025
05/26/2026
None
Yes (5)
‑
None
Yes (6)
‑
(1) After adjustment in order to reflect the five‑for‑one stock split of the nominal value of Dassault Systèmes’ shares in effect as of July 7, 2021.
(2) Not applicable to the shares subject to the legal lock‑up set by the Board of Directors (see paragraph 5.1.3.2 “Compensation of Mr. Bernard Charlès, Vice chairman of the
Board of Directors & Chief Executive Officer until January 8, 2023, then Chairman & Chief Executive Officer”).
(3) Performance condition identical to the one stipulated for the 2020‑A performance shares granted by the Board on the same day to certain Dassault Systèmes employees
5
(see table above “History of performance share allocations”).
(4) Performance condition identical to the one stipulated for the 2021‑A performance shares granted by the Board on the same day to certain Dassault Systèmes employees
(see table above “History of performance share allocations”).
(5) Performance condition identical to the one stipulated for the 2022‑A1 performance shares granted by the Board on the same day to certain Dassault Systèmes employees
(see table above “History of performance share allocations”).
(6) Performance condition identical to the one stipulated for the 2023‑A performance shares granted by the Board on the same day to certain Dassault Systèmes employees
(see table above “History of performance share allocations”).
From a general perspective, Mr. Bernard Charlès retains the
Dassault Systèmes shares vested at the end of the vesting
period for the granted shares. Thus, in 2023, Mr. Bernard
Charlès retained the shares vested in June 2023 (2021‑B
tranche 1 plan).
On December 31, 2022, Mr. Bernard Charlès held
24,452,205 shares,
representing 1.83% of Dassault
Systèmes’ share capital.
On December 31, 2023, Mr. Bernard Charlès held
25,202,205 shares,
representing 1.88% of Dassault
Systèmes’ share capital.
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 5
Corporate Governance
The Board’s Corporate Governance Report
5.1.6
Application of the AFEP‑MEDEF Code
Dassault Systèmes refers to the recommendations of the
AFEP‑MEDEF Code revised in December 2022 and reviews
its corporate governance practices on a regular basis in order
to achieve continual improvement in this area.
As permitted by the said Code and the law, Dassault
Systèmes SE has not adopted all of
the Code’s
recommendations, or has adopted certain provisions in
modified form, in view of its particular situation or due to
its compliance with other provisions of the Code. These are
summarized in the table below, together with the reasons for
their exclusion/modification.
Recommendations
of the AFEP‑MEDEF Code
Proportion of performance
shares in the compensation
of executive officers
(Article 26.3.3)
Explanation
A significant portion of the shares granted in 2023 to Mr. Bernard Charlès, Chairman & Chief
Executive Officer from January 9 to December 31, 2023, was part of the gradual process
of associating him with the Company’s capital that began several years ago, with the aim
of ultimately recognizing his entrepreneurial role spanning over 35 years with Dassault
Systèmes and giving him an equity stake comparable to that of founders of companies
in the same sector, and more generally, of his peers in technology companies around the
world.
The shares granted to Mr. Pascal Daloz represent a significant proportion of his total
compensation. This is in line with the practice observed in the international technology
companies with which the Company compares itself.
Appointment of the directors
representing employees
to the Compensation
and Nomination Committee
(Article 19.1)
The Board of Directors favors total independence of its committees and considers
this to be essential to achieve a balance of power in a controlled company. The
independence of the committees therefore helps maintain an overall balance in
Dassault Systèmes’ governance, as does the appointment of an independent lead
director.
The Compensation and Nomination Committee’s discussions are carefully reported
and the Committee’s recommendations are debated during the Board meetings. All
directors, including the directors representing employees, have the opportunity to
express their opinions on the subjects dealt with by the Committee.
5.1.7
Other Information Required by Articles L. 225‑37
and L. 22‑10‑8 et seq. of the French Commercial Code
5.1.7.1
Specific Conditions Related
to Shareholder Participation
in the General Meeting
Shareholders participate in the General Meetings of Dassault
Systèmes SE in accordance with applicable law and its
by‑laws (Articles 24 to 33). Thus, every shareholder has the
right to participate in General Meetings and deliberations
either personally or via a proxy, regardless of the number of
shares held, according to the conditions specified by Article
27 of the by‑laws of Dassault Systèmes (see paragraph 6.1.2
“Memorandum and Specific By‑Laws Provisions”).
In the case of stripping of the ownership of the shares, the
voting right belongs to the bare owner, except for decisions
relating to the allocation of profits, where it belongs to the
beneficial owner.
5.1.7.2
Table Summarizing the Current
Delegations Granted by the
General Meeting of Shareholders
in Respect of Capital Increases
The following table summarizes the delegations of authority
and authorizations granted by the General Meeting to the
Board of Directors and in effect during the 2023 fiscal year
and as of the date of this Universal registration document. It
includes authorizations to increase the share capital and to
buy back and cancel Dassault Systèmes SE’s own shares.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Corporate Governance
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5
Resolutions
and General Meetings
(“GM”)
Description of the delegation
of authority granted to the Board of Directors
SHARE BUYBACKS AND CANCELLATION
Utilization
in the fiscal year
12th resolution
GM of 05/24/2023
Authorization: purchase of Dassault Systèmes shares.
Duration: approximately 12 months (expiring at the GM approving the financial
statements for the fiscal year ending December 31, 2023).
Cap: 25 million shares representing up to €1 billion.
Cannot be used during a public offering period.
See paragraph 6.2.4
“Share Buyback
Programs”
13th resolution
GM of 05/24/2023
Authorization: cancel shares purchased under the buyback program.
Duration: approximately 12 months (expiring at the GM approving the financial
statements for the fiscal year ending December 31, 2023).
Cap: 5% of share capital in a 24‑month period.
See paragraph 6.2.4
“Share Buyback
Programs”
ISSUANCE OF SECURITIES
14th resolution
GM of 05/24/2023
15th resolution
GM of 05/24/2023
16th resolution
GM of 05/24/2023
17th resolution
GM of 05/24/2023
18th resolution
GM of 05/24/2023
Authorization: increase the Company’s share capital by issuing shares or
marketable securities giving access to Dassault Systèmes SE share capital or equity
securities giving right to debt securities, with the preemptive right of shareholders.
Duration: 26 months, i.e. until 07/24/2025.
Cap: for a maximum nominal amount of €12 million for shares or marketable
securities – for a maximum nominal amount of €1 billion for debt securities.
Cannot be used during a public offering period.
Authorization: increase the Company’s share capital by issuing shares
or marketable securities giving access to Dassault Systèmes SE share capital,
or equity securities giving right to the allocation of debt securities, with a waiver
of their preferential subscription right and by way of a public offering other than
those envisaged by Article L. 411‑2, 1st paragraph, of the French Monetary
and Financial Code.
Duration: 26 months, i.e. until 07/24/2025.
Cap: for a maximum nominal amount of €12 million for shares or marketable
securities – for a maximum nominal amount of €1 billion for debt securities,
to be deducted from the caps set out in the 14th resolution.
Cannot be used during a public offering period.
Authorization: increase the Company’s share capital by issuing shares
or marketable securities giving access to Dassault Systèmes SE share capital,
or equity securities giving right to the allocation of debt securities, under
the terms of the delegation of authority referred to in the previous resolution,
by way of a public offering as provided for in Article L. 411‑2, 1st paragraph,
of the French Monetary and Financial Code.
Duration: 26 months, i.e. until 07/24/2025.
Cap: for a maximum nominal amount of €12 million for shares or marketable
securities – for a maximum nominal amount of €1 billion for debt securities,
to be deducted from the caps set out in the 14th resolution.
Cannot be used during a public offering period.
Authorization: increase the number of marketable securities to issue in the case
of a share capital increase with or without the preemptive right of shareholders.
Duration: 26 months, i.e. until 07/24/2025.
Cap: 15% of the initial issue, to be deducted from the cap provided
for in the 14th resolution.
Cannot be used during a public offering period.
Authorization: increase the share capital by the incorporation of reserves,
profits or premiums.
Duration: 26 months, i.e. until 07/24/2025.
Cap: for a maximum nominal amount of €12 million
(to be deducted from the cap set out in the 14th resolution).
Cannot be used during a public offering period.
None
None
None
None
None
5
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
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Corporate Governance
The Board’s Corporate Governance Report
Resolutions
and General Meetings
(“GM”)
19th resolution
GM of 05/24/2023
19th and 20th resolutions
GM of 05/19/2022
Description of the delegation
of authority granted to the Board of Directors
Authorization: increase the share capital to remunerate contributions
in kind of shares.
Duration: 26 months, i.e. until 07/24/2025.
Cap: 10% of the share capital, to be deducted from the cap provided
for in the 14th resolution.
Cannot be used during a public offering period.
Authorization: decide one or more mergers through absorption
and consequently to increase share capital by issuing new shares.
Duration: 26 months, i.e. until 07/19/2024.
Cap: for a maximum nominal amount of €10 million, to be deducted
from the cap set out in the 14th resolution of the General Meeting
of May 26, 2021, or any subsequent resolution having the same purpose.
Cannot be used during a public offering period.
Utilization
in the fiscal year
None
None
ISSUANCE FOR THE BENEFIT OF EMPLOYEES AND EXECUTIVE OFFICERS
20th resolution
GM of 05/24/2023
21st resolution
GM of 05/24/2023
22nd resolution
GM of 05/24/2023
23rd resolution
GM of 05/24/2023
Authorization: grant free shares, existing or to be issued, for the benefit
of certain employees and/or corporate officers of Dassault Systèmes SE
and its affiliated entities as defined in Article L. 225‑197‑2
of the French Commercial Code.
Duration: approximately 24 months (expiring at the GM approving
the financial statements for the fiscal year ending December 31, 2024).
Cap: 1.5% of share capital.
Authorization: grant stock options giving right to subscribe to new shares
or purchase existing shares for the benefit of certain employees
and/or corporate officers of Dassault Systèmes SE and its affiliated entities
as defined in Article L. 225‑180 of the French Commercial Code.
Duration: approximately 24 months (expiring at the GM approving
the financial statements for the fiscal year ending December 31, 2024).
Cap: 3% of share capital.
Use of this
authorization
is described
in paragraph 5.1.5
“Interests of Executive
Management and
Employees in the Share
Capital of Dassault
Systèmes SE”
Use of this
authorization
is described
in paragraph 5.1.5
“Interests of Executive
Management and
Employees in the Share
Capital of Dassault
Systèmes SE”
Authorization: increase the share capital for the benefit of members
of a company savings plan of Dassault Systèmes SE and/or its affiliated entities.
Duration: 26 months, i.e. until 07/24/2025.
Cap: for a maximum nominal amount of €1 million (to be deducted from the cap
set out in the 14th resolution of the General Meeting of May 24, 2023).
Authorization: increase the Company’s share capital in favor of a category
of beneficiaries.
Duration: 18 months, i.e. until 11/24/2024.
Cap: for a maximum nominal amount of €1 million, to be deducted from the cap
set out in the 14th resolution of the General Meeting of May 24, 2023, and from
the cap set out in the 22nd resolution of the General Meeting of May 24, 2023.
None
None
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The Board’s Corporate Governance Report
5
is proposed to the General Meeting among other
It
resolutions
the
Resolutions Proposed by the Board of Directors to the
General Meeting of May 22, 2024”):
(see paragraph 7.1 “Presentation of
— to renew the authorizations to purchase Dassault
Systèmes shares and to cancel the authorizations, which
expire on May 22, 2024 (see also paragraph 6.2.4.2
“Description of the Share Buyback Program Proposed to
the General Meeting on May 22, 2024”);
— to renew the authorization granted to the Board of
Directors to decide on one or more mergers by absorption
and to increase the share capital accordingly by issuing
shares, said authorization expiring on July 19, 2024;
— to authorize the Board of Directors to decide on one or
more demergers and one or more partial demergers
and to increase the share capital accordingly by issuing
shares;
— in order to allow for the introduction of an employee
shareholding plan, two new authorizations allowing for
an increase in the share capital reserved for members
of company savings plans and a specific category of
beneficiaries.
5.1.7.3
Draft Resolutions Prepared by the
Board pursuant to the General Meeting
Vote on the Compensation Policy
The draft resolution
in respect of the vote on the
compensation policy is set out in paragraph 7.2 “Text of the
Draft Resolutions Proposed by the Board of Directors to the
General Meeting on May 22, 2024”.
5.1.7.4
Possible Consequences in Case
of a Public Tender Offer
is contained
The information required by Article L. 22‑10‑11 of the
in paragraphs
French Commercial Code
6.3 “Information about the Shareholders”
(concerning
control of GIMD), 6.1.2.3 “Shares and Voting Rights”
(concerning the conditions for exercising voting rights)
and 5.1.3.2 “Compensation Policy Applicable to the Chief
Executive Officer” of this Universal registration document.
This Universal registration document is available on the
French Financial Markets Authority (AMF) website (www.
amf‑france.org) and on the Dassault Systèmes website
(www.3ds.com). A press release is issued to announce when
the Universal registration document becomes available.
Under the credit agreement executed on June 11, 2019,
if a person or a group of persons acting in concert (with
the exception of GIMD and/or Mr. Charles Edelstenne)
takes control (within the meaning of Article L. 233‑3 I
1st and 2nd paragraphs and II of the French Commercial
Code) of Dassault Systèmes, any lender participating in
the €750 million revolving credit facility may request
the cancellation of its entire commitment in respect of
the facility and the immediate repayment of its share of
all outstanding advances. As of December 31, 2023, the
revolving credit facility had not been drawn upon (see
paragraph 1.4.3 “Material Contracts”).
In addition, if such a change of control results in a rating
downgrade, below investment grade, for the bonds issued
by Dassault Systèmes on September 16, 2019 for a total
of €3.65 billion, bondholders may request the redemption
at par value of the bonds they hold. On September 16,
2022, the Group repaid the first tranche of its bonds for
€900 million.
5.1.7.5
Gender Equality Within
the Executive Team and Top
Positions of Responsibility
Dassault Systèmes has a strong ambition in terms of gender
equality, including within the Executive team and top
positions of responsibility (see paragraph 2.3.5 “Promoting
Diversity and Inclusion”).
Initiatives are thus spearheaded within the Company in
favor of women’s recruitment, the ability to hire more
female engineers being however very
limited as they
are under‑represented
in engineering schools and the
high‑tech sector. Initiatives are also spearheaded in order to
understand their specific needs and to encourage a diversity
of professional experiences, as well as to support the process
of successfully assuming responsibilities.
internal community 3DS WIN (Women
The
INtiative),
established in 2012, is a network of women and men who
are taking action to encourage a diversity of profiles in the
Company and within university environments, and more
generally to promote equality and diversity to create a more
inclusive and sustainable society. This community currently
has over 1500 members worldwide. In France, nearly
500 3DS WINners are working together to attract and recruit
new female talent, to inspire and recognize women while
enabling them to accelerate their career development.
In 2023, Dassault Systèmes demonstrated its commitment
by taking part in major events, including the Assises de
la Parité and the Women’s Forum Global Summit. It is also
involved in the MyJourney scheme, which helps to identify
career growth or transfer plans formulated by employees,
and in particular by women, including those aspiring to
managerial positions; and in the nine‑month Rise Up!
program, which helps future managers to develop inclusive
leadership skills to support sustainable performance and
innovation for Dassault Systèmes.
Dassault Systèmes engages with a variety of stakeholders
such as the charitable organizations Cercle InterElles and
Femmes Ingénieures in France, PowerToFly in the United
States, and Inspiringirls in Italy.
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The Board’s Corporate Governance Report
Moreover, the proportion of women on the Executive team is
currently 38.5%, compared to 22.2% in 2019, and Dassault
Systèmes has set the objective of maintaining a proportion
of women of approximatively 40% (see paragraph 5.1.2
“Executives of Dassault Systèmes”).
In the context of the SBF120 business ranking by the
Ministry responsible for gender equality, diversity and
equal opportunities, the overall score for the proportion of
women on Dassault Systèmes’ management bodies is now
83.9 points out of 100, an increase of 0.6 points.
Moreover, Dassault Systèmes SE received a global score of
96 points out of 100 on the Gender Equality Index calculated
in 2024 with regard to 2023.
At the level of Dassault Systèmes SE, the proportion of
women in the top 10% of positions with responsibility is
monitored on the basis of targets assessed annually. The
proportion of women currently occupying such positions
stands at 28%.
5.1.7.6
Procedure for Evaluating
Related‑Party Agreements
At its meeting on March 11, 2020, the Board of Directors
adopted a procedure for classifying related‑party agreements,
subjecting them, where appropriate, to the regulated
agreements procedure and, for routine transactions entered
into at arm’s length, regularly assessing whether they satisfy
those conditions.
The Legal Department, with the support of the Finance
Department, is thus responsible for reviewing prior to its
conclusion, and in the event of its amendment, renewal
or extension, any agreement entered into by Dassault
Systèmes SE and a related party (as provided for in Article
L. 225‑38 of the French Commercial Code) and conducts an
annual review of standard agreements entered into at arm’s
length, during the last fiscal year or earlier, as long as their
effects continue.
The results of the assessment of non‑regulated agreements
are presented to the Board’s Audit Committee which decides
upon it.
In early 2024, the Legal Department thus carried out a
review of related‑party agreements considered to be routine
transactions entered into at arm’s length and concluded
that all such agreements continue to satisfy both of these
conditions.
5.1.7.7
Agreements With a Company
Controlled by Dassault Systèmes SE
No agreement was entered
into directly or by an
intermediary person between, on the one hand, one of
Dassault Systèmes SE’s corporate officers or shareholders
owning more than 10% of voting rights and, on the other
hand, a company controlled by Dassault Systèmes SE.
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5
5.2
Enterprise risk management
and internal control procedures
5.2.1
Definitions and Objectives of Enterprise Risk
Management and Internal Control
The aim of enterprise risk management is to identify, assess,
manage and communicate enterprise risks in the context
of defining and achieving the objectives set by corporate
governance. Dassault Systèmes promotes a risk management
culture that is overseen by a Risk Management Steering
Committee. The Committee relies on standards (COSO ERM
and ISO31000) and tailored guidelines to the specificities of
the Entreprise. Internal control is a key component of the risk
management process.
internal control
According to the COSO,
is a process
implemented by the Board of Directors, managers and
employees aimed at providing a reasonable guarantee with
regard to achieving the following objectives: performing
and optimizing operations, the reliability of financial and
accounting information, and compliance with the laws and
regulations in force.
Inspired by the COSO framework and the French Financial
Markets Authority (AMF) reference framework, internal
control procedures at Dassault Systèmes SE and
its
subsidiaries aim to:
— improve the performance and efficiency of operations
through optimized use of available resources (COSO
framework);
— ensure the reliability, quality and availability of financial
data (COSO and AMF frameworks);
— ensure that operations comply with legislation in force
and Dassault Systèmes’ internal regulation (COSO and
AMF frameworks);
— guarantee the security of assets, particularly intellectual
property, the human and financial resources and the
image of Dassault Systèmes (AMF framework);
— prevent risks of error or fraud
(COSO and AMF
frameworks).
5.2.2
Participants and Organization
5.2.2.1
Risk Management Participants
and Organization
Risk management is led by a Risk Management Steering
Committee comprised of representatives from the Legal,
Human Resources, Sustainable Finance & Procurement
and Audit and Risks departments, overseen by the General
Secretary. The Steering Committee monitors the evolutions
in the Company’s risk mapping.
It interacts regularly with the entire Dassault Systèmes
organizational structure to confirm and update, as necessary,
the Company’s risk mapping, and especially with:
— members of the executive committee;
— representatives from other departments, internal experts
and operational managers (especially the heads of Group
Cybersecurity, Employee Health and Safety, Information
Systems and Compliance), as well as those in charge
of specific risk management systems developed and
maintained for regulatory or operational reasons.
5
Each year the Risk Management Steering Committee holds
a meeting with the Board’s three committees gathered
in
risks
management and presents a mapping of the Group’s risks
along with the conclusions of its work over the past period.
independent directors’ session dedicated
to
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5.2.2.2
Internal Control Participants
and Organization
senior management, of the internal control mechanisms
related to financial reporting;
All corporate governance bodies participate
the
implementation of the internal control and risk management
processes.
in
In 1996, the Board of Directors created an Audit Committee,
with the mission described above (see paragraph 5.1.1.3
the Board
“Composition, Practices and Activities of
Committees”).
Internal control relies on the responsibility by directions
and subsidiaries of Dassault Systèmes over their respective
area of expertise, and on delegations of powers to certain
members of the Executive Committee of the Company, such
delegations having specific fields of application:
— subsidiaries’ local chief executive and financial officers
are responsible for preparing the subsidiaries’ financial
statements which are included in Dassault Systèmes’
consolidated financial statements and
the annual
financial statements and management reports for each
of their respective subsidiaries, whether the accounts
are prepared by their own financial teams or by shared
internal financial and accounting shared services centers,
located particularly in France, the United States, Japan,
and Malaysia;
— Dassault Systèmes’ Financial Planning & Analysis
department is responsible for directing the financial
objectives of Dassault Systèmes in accordance with
the budget monitoring procedure and, in this respect,
performs specific controls and analyzes of the quarterly
accounts. It is also responsible for identifying, analyzing
and warning of any differences from the previous year,
the previous quarter and Dassault Systèmes’ budget
objectives, which are subject to a quarterly update;
— the Audit and Risks department, reporting to the General
Secretary and Finance department on the one hand
and to the Audit Committee on the other hand, has the
main mission of evaluating the relevance of Dassault
Systèmes’ internal control processes, of alerting senior
management and the Audit Committee
regarding
possible deficiencies or risks, and of proposing measures
that will limit the risks and improve the efficiency of
operations. The Audit and Risks department also has the
responsibility for the annual assessment, on behalf of
— the team in charge of Business Ethics and Compliance,
is responsible
reporting to the Legal department,
for ensuring the deployment and enforcement for
the principles described
in the Dassault Systèmes’
Code of Business Conduct, as well as Dassault
Systèmes’ specific policies,
recommendations and
regarding ethics and compliance. This
procedures
department
is supported by an Ethics Committee
which meets every month and investigates any alleged
non‑conformities brought to its knowledge, in particular
through the
internal whistleblowing procedure. For
matters pertaining specifically to human rights and
environment, a “Duty of Vigilance” Steering Committee
composed of representatives of the Business Ethics
and Compliance, Purchasing and Audit and Risks
and Human Resources departments follows up and
evaluates the implementation of the Vigilance Plan (see
paragraph 2.6.5 “Maintaining an Appropriate Vigilance
Plan”).
In parallel, Dassault Systèmes’ management has established
the following bodies:
— a Disclosure Committee, responsible for deciding whether
certain information is considered inside information and
if the publication of such information may be deferred,
ensuring compliance with the conditions allowing a
deferral of publication, documenting it and informing the
French Financial Markets Authority (AMF) at the time of
publication;
— an
Insider Committee responsible for setting and
applying the rules aimed at preventing insider trading. In
particular, this Committee informs all interested parties
(employees, directors, consultants, etc.) of the periods
in which they are prohibited from trading Dassault
Systèmes’ securities. These blackout periods are longer
than those set forth by law. In addition, as soon as they
have regular access to privileged and insider information
in relation to their roles, all persons must obtain the
Insider Committee’s prior approval for any transactions
involving Dassault Systèmes’ securities (as defined in its
Insider Trading Rules). Dassault Systèmes complies with
legal and regulatory provisions regarding the prevention
of insider trading on a general basis.
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5.2.3
Procedures
5.2.3.1
Risk Management Procedures
The Risk Management Steering Committee of the Company
relies on a charter and a procedure defining activities
carried out throughout the year. The work of the Steering
Committee, in connection with that of Dassault Systèmes’
senior management, is aimed at identifying, assessing,
handling and communicating risks that could
impact
Dassault Systèmes’ performance.
interviews and
— risk identification and assessment: the risks identified
through
surveys with Company
management and industry experts were analyzed in
detail to determine a level of risk, assessed according to
three areas: impact on strategic positioning, impact on
image, and reputation and financial impact;
— risk
treatment:
the Steering Committee monitors
the current and planned level of control, as well as
related action plans to achieve the level discussed with
stakeholders;
— risk communication: the Steering Committee’s conclusions
are reviewed annually by the Board of Directors’ three
committees as part of an independent directors session
at a meeting devoted to preventing and managing risks
within the Company. These risks, after taking into account
risk management policies, are summarized in paragraphs
1.9.1 “Risks Related to the Business” and 1.9.2 “Financial
and Market Risks”.
into
The Risk Management Steering Committee takes
account risk management systems required by regulation
and/or that require specific monitoring, namely:
— risks of corruption and influence peddling – US Foreign
Corrupt Practices Act (FCPA), UK Bribery Act, French
Sapin 2 law: work carried out by the Business Ethics
and Compliance department based on a specific
methodology;
— risks related to the Vigilance Plan: work carried out by the
Business Ethics and Compliance department based on a
specific methodology;
— social, societal and environmental risks: work carried out
by the Sustainable Development department and the
Sustainable Finance & Procurement department.
Operational risks are essentially managed by entities and
the Company’s organizational structures. Certain risks,
particularly in the area of intellectual property protection,
ethics and compliance, and legal and financial risks are also
specifically monitored at the Group level:
— protecting its intellectual property is an ongoing concern
for Dassault Systèmes. This protection is ensured by
implementing and monitoring corporate processes
332
designed to verify Dassault Systèmes rights before
it markets its software products. Dassault Systèmes
also protects its inventions through a reasonable and
well‑considered approach to filing patents in several
jurisdictions. Dassault Systèmes principal brands are also
registered in a large number of countries. The Company
is continuing to actively develop its program designed to
fight against infringement concerning its products;
— information systems security, which is critical to ensuring
the protection of the source codes for Dassault Systèmes
applications and its data as well as those of its customers,
is continually evaluated, tested and strengthened in
the areas of network access or performance, anti‑virus
protection and the physical security of servers and other
information system facilities;
— the implementation of internal preventive measures
to continue operations and limit the impact of a major
incident. As a result, several secured computer systems
protect source codes and all electronic data stored on
the servers, workstations and laptop computers used
all across Dassault Systèmes. The computer protection
systems are maintained in different sites.
5.2.3.2
Internal Control Procedures
The internal control mechanisms developed by Dassault
Systèmes promote internal control:
— control environment: Dassault Systèmes’ business ethics
rules are formalized in particular in the Code of Business
Conduct. It describes the manner in which the Company
expects its business to be conducted and is intended to
serve as a reference for all Dassault Systèmes’ employees
to guide their behavior and interactions in their daily
activities
(see paragraph 2.6.1 “Promoting Strong
Business Ethics”). The Code of Business Conduct, which
applies to all employees of Dassault Systèmes and is
available on Dassault Systèmes’ website and internal
platform, addresses, in particular (i) compliance with
regulations applicable to Dassault Systèmes’ business,
(ii)
interactions within Dassault Systèmes
and with its ecosystem and (iii) protecting Dassault
Systèmes’ assets (in particular, its intellectual property
and the confidentiality of its clients and partners). The
Code also includes specific policies, procedures and
recommendations concerning the fight against corruption
and influence‑peddling, personal data protection, export
embargoes, conflicts of interest, and insider trading. The
distribution of these policies is accompanied by training,
which is specifically provided to any new employee and
to employees joining Dassault Systèmes as part of the
integration process for its acquisitions;
individual
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT — protection and monitoring activities:
– the framework and internal control policies related to
the main processes within the Company (information
technology security, sales administration, human
resources, protection of intellectual property, closing
and publication of financial statements, treasury
management and client credit risk management) are
formalized and updated at the level of both Dassault
Systèmes SE and its main subsidiaries or the related
shared services centers,
– the key financial control points documented in the
internal control framework prevent or detect risks
impacting
in Dassault
Systèmes’ significant entities;
the financial
information
Corporate Governance
Enterprise risk management and internal control procedures
5
— monitoring: Dassault Systèmes has rolled out processes
to monitor, review and analyze on a regular basis its
performance at the level of its main brands, GEOs,
entities and distribution channels (governance, budget
reviews, and activity reviews). In addition, quarterly
communication meetings are also held to ensure the
perfect dissemination of Dassault Systèmes strategy and
culture of integrity to all its employees and exchanges
facilitating its implementation;
— audit missions: in 2023, the Audit and Risks department
carried out different missions to verify compliance of
the internal control procedures with the Enterprise’s
objectives. These missions, authorized by the Audit
Committee, result in recommendations to the applicable
executive teams and in action plans to reinforce, as
necessary, the audited processes and organizations. The
Audit and Risks department carries out a review of the
implementation of these plans.
5.2.4
Internal Control Procedures Relating to the Preparation
and Treatment of Financial and Accounting Information
With respect to the internal control processes related to the
preparation of financial and accounting information, Dassault
Systèmes’ focus has been to:
statements transmitted to Dassault Systèmes SE and
to provide detailed business reviews and analyses
before the accounts are consolidated,
— implement a quarterly control system to update budget
objectives and identify and analyze variations from the
objectives set by the Finance department of Dassault
Systèmes, and from the previous quarter and fiscal year.
Thus, each of the organizations (GEOs, brands, functions)
prepares a detailed and documented presentation of
its sales activity for the past quarter and the year and
performs a comparative analysis of its financial results
(revenues and costs) in comparison with the budget
targets of the current year and compared to the same
quarter for the previous year.
Budget projections are reviewed, analyzed and updated
each quarter by the executive teams of the Finance
Department to take into account all changes in the
market and the economic environment, particularly as
regards exchange rates, and to present realistic objectives
to shareholders and financial markets;
— maintain reliable consolidation tools and processes
in order to establish and publish required financial
information every quarter as soon as possible. The
consolidation procedure as defined by Dassault
Systèmes SE is based on:
– giving responsibility to the finance teams in the
subsidiaries, who are required to certify the quarterly
– consolidation tools that secure data transmission and
processing,
– standardization of processes and information systems,
particularly by centralizing the majority of the
accounting transactions in shared service centers,
– an annual process to monitor off‑balance sheet
commitments and related‑party agreements,
– the detailed review by the Finance department of the
quarterly accounts of Dassault Systèmes SE and its
subsidiaries,
5
– the detailed analysis by the Accounting department
of all the material software license and/or service
transactions
in order to validate the accounting
recognition;
— systematize the processes by which the Audit
Committee and the Board of Directors review financial
information prior to publication;
— structure its financial communications to ensure
simultaneous and equivalent publication on its principal
markets of financial results or any other information that
could have an impact on the price of its shares.
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Enterprise risk management and internal control procedures
5.2.5
Internal Control Assessment
The Company’s management seeks to maintain a high
level of internal control within Dassault Systèmes. Detailed
assessment work
(particularly on key control points)
was therefore carried out in 2023 by the Audit and Risks
Department, as part of the process of achieving continuous
improvement and for the purpose of preparing targeted
action plans and audits. In this respect, the scope of Dassault
Systèmes entities subjected to internal control evaluations,
in the form of internal control reviews conducted in the
months immediately following acquisition may be expanded
to entities that had previously been considered immaterial
and to newly acquired companies.
The internal control assessment program led by the Audit
and Risk department includes a declarative component
(self‑assessments by management related to requirements
independent component
deemed essential) plus an
(assessments by the Audit and Risk department). The results
of such evaluation are presented to the Audit Committee. In
addition, the efficiency of internal control is assessed by the
Statutory Auditors as part of their annual mission.
5.2.6
Internal Control Limitations
The internal control system cannot provide an absolute
guarantee that Dassault Systèmes’ objectives in this area will
be achieved. Inherent limitations apply to all internal control
systems, related in particular to the exercise of individual
judgment, or dysfunctions which may result from human
failure, or even to the uncertainties linked to events external
to Dassault Systèmes.
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Summary of Share Transactions by Dassault Systèmes Executives
5
5.3
Summary of Share Transactions
by Dassault Systèmes Executives
Pursuant to Article 223‑26 of the French Financial Markets
Authority
(AMF) General Regulation, the table below
shows transactions involving marketable securities issued
by Dassault Systèmes carried out in 2023 by directors or
executives of Dassault Systèmes or by persons related
to them (according to Article L. 621‑18‑2 of the French
Monetary and Financial Code) on the basis of the declarations
made by the relevant parties to the AMF, available on www.
amf‑france.org.
Date Place
Person concerned
Nature of the transaction
Unit price
(in euros)
Volume
05/26/2023
Euronext Paris
Rouven Bergmann
05/30/2023
Off‑trading platform
Elisa Prisner
Acquisition
of performance shares
0.0000
25,245
Pledge of shares
0.0000
10,000
06/06/2023
Euronext Paris
06/07/2023
Euronext Paris
Thibault de Tersant
Sale of shares
41.3650
9,090
Rouven Bergmann
Sale of shares
41.4101
10,000
06/29/2023
Off‑trading platform
Erik Swedberg
Acquisition
of performance shares
0.0000
45,000
06/29/2023
Euronext Paris
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
Erik Swedberg
Sale of shares
39.6851
20,318
Victoire de Margerie
Elisa Prisner
Florence Verzelen
Olivier Ribet
Pascal Daloz
Hervé Andorre
Philippe Laufer
Florence Aubigny
Samson Khaou
Thibault de Tersant
Laurence Baucher‑Barthès
Acquisition
of performance shares
Acquisition
of performance shares
Acquisition
of performance shares
Acquisition
of performance shares
Acquisition
of performance shares
Acquisition
of performance shares
Acquisition
of performance shares
Acquisition
of performance shares
Acquisition
of performance shares
Acquisition
of performance shares
Acquisition
of performance shares
0.0000
8,750
0.0000
15,000
0.0000
30,000
0.0000
65,000
0.0000
200,000
0.0000
1,565
0.0000
90,000
0.0000
115,000
0.0000
45,000
0.0000
15,000
0.0000
38,750
5
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Summary of Share Transactions by Dassault Systèmes Executives
Date Place
Person concerned
Nature of the transaction
Unit price
(in euros)
Volume
0.0000
750,000
0.0000
18,092
06/29/2023
Off‑trading platform
06/29/2023
Off‑trading platform
07/31/2023
Euronext Paris
Bernard Charlès
Rouven Bergmann
Acquisition
of performance shares
Acquisition
of performance shares
Charles Edelstenne
Acquisition of shares
38.6352
14,148
07/31/2023 *
Charles Edelstenne
Acquisition of shares
38.6336
11,994
08/01/2023
Euronext Paris
Charles Edelstenne
08/01/2023 *
Charles Edelstenne
Acquisition of shares
Acquisition of shares
38.6430
38.6440
4,166
9,692
08/21/2023
Euronext Paris
Charles Edelstenne
Acquisition of shares
35.6563
96,875
08/21/2023 *
Charles Edelstenne
Acquisition of shares
35.6789
53,125
10/27/2023
Euronext Paris
11/08/2023
Euronext Paris
11/14/2023
Euronext Paris
11/14/2023
Euronext Paris
11/28/2023
Euronext Paris
11/29/2023
Euronext Paris
12/04/2023
Euronext Paris
Thibault de Tersant
Sale of shares
37.8816
13,750
Elisa Prisner
Sale of shares
40.1098
7,546
Victoire de Margerie
Sale of shares
41.0140
7,330
Rouven Bergmann
Sale of shares
40.7796
15,245
Laurence Baucher‑Barthès
Sale of shares
42.7139
31,715
Laurence Baucher‑Barthès
Sale of shares
42.8928
18,285
Erik Swedberg
Exercise of stock options
28.8200
20,000
*
CBOE Europe‑DXE Order Books, Turquoise, Virtu Financial Ireland Limited, Boerse Belin Equiduc
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Summary of Share Transactions by Dassault Systèmes Executives
5
From a general perspective, Mr. Bernard Charlès and Mr.
Pascal Daloz retain the Dassault Systèmes shares they
acquired either, if applicable, from the exercise of share
subscription options or at the end of the vesting period for
the granted shares. Thus, in 2023, Mr. Bernard Charlès
retained the 750,000 shares that vested in June 2023
(granted in June 2021 grant) while Mr. Pascal Daloz retained
the 200,000 shares that vested in June 2023 (granted in
June 2021).
On December 31, 2022, Mr. Bernard Charlès held
representing 1.83% of Dassault
24,452,205 shares,
Systèmes’
capital. Mr. Pascal Daloz held
2,974,295 shares, representing 0.22% of Dassault Systèmes’
share capital.
share
On December 31, 2023, Mr. Bernard Charlès held
representing 1.88% of Dassault
25,202,205 shares,
Systèmes’
capital. Mr. Pascal Daloz held
3,174,295 shares, representing 0.24% of Dassault Systèmes’
share capital.
share
Transactions carried out by GIMD, a legal entity related to Charles Edelstenne,
Honorary Chairman and Director, and to Marie‑Hélène Habert‑Dassault, Director,
Date Place
Nature of the transaction
04/27/2023
Over‑the‑counter
05/04/2023
Over‑the‑counter
05/05/2023
Over‑the‑counter
05/09/2023
Over‑the‑counter
05/12/2023
Over‑the‑counter
05/16/2023
Over‑the‑counter
07/27/2023
Over‑the‑counter
07/28/2023
Over‑the‑counter
09/05/2023
Over‑the‑counter
09/06/2023
Over‑the‑counter
09/08/2023
Over‑the‑counter
Assignment of put options
Assignment of put options
Assignment of put options
Assignment of put options
Assignment of put options
Assignment of put options
Assignment of put options
Assignment of put options
Assignment of put options
Assignment of put options
Assignment of put options
Unit price
(in euros)
Volume
0.9519
45,500
1.1040
44,200
0.8930
45,500
0.9400
47,000
0.9462
46,200
0.9357
45,500
0.7810
43,000
0.7370
42,500
0.7090
45,500
5
0.9420
43,500
0.8940
43,500
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 5
Corporate Governance
Information About the Statutory Auditors
5.4
Information About the Statutory Auditors
Principal auditors
PricewaterhouseCoopers Audit, member of the Compagnie
Régionale des Commissaires aux comptes de Versailles
(Versailles regional association of auditors), 63, rue de Villiers
– 92200 Neuilly‑sur‑Seine, France, represented by Richard
Béjot, whose first mandate began on June 8, 2005 and was
renewed on May 24, 2023 for a period of six fiscal years
expiring at the General Meeting of Shareholders approving
the financial statements for the fiscal year ending on
December 31, 2028.
Statutory Auditors’ fees and services
See Note 26 to the consolidated financial statements.
KPMG S.A., member of the Compagnie Régionale des
Commissaires aux comptes de Versailles, Tour Eqho, 2 avenue
Gambetta – 92066 Paris La Défense Cedex, represented
by Jacques Pierre and Xavier Niffle, whose first mandate
commenced on May 19, 2022 and will expire at the General
Meeting called to approve the financial statements for the
fiscal year ending December 31, 2027.
5.5
Declarations Regarding the Administrative
and Management Bodies
— there is no potential conflict of interest between the
duties of the directors toward Dassault Systèmes and
their private interests and/or other duties, and no director
or executive of Dassault Systèmes has been selected as
a member of an administrative or management body
by virtue of an agreement with major shareholders,
customers, suppliers or others;
— no director or executive of Dassault Systèmes is party
to a service contract with Dassault Systèmes SE, or one
of its subsidiaries, which provides him or her with a
personal benefit.
To Dassault Systèmes SE’s knowledge:
— there is no family relationship between the directors,
or between a director and an executive of Dassault
Systèmes (see paragraph 5.1.2 “Executives of Dassault
Systèmes” above for the list of members) with the
exception of Ms. Marie‑Hélène Habert‑Dassault and her
sister‑in‑law Ms. Catherine Dassault;
— in the past five years, none of the directors or executives
of Dassault Systèmes:
– has been convicted of fraudulent offenses,
– has been affected by the bankruptcy, receivership,
liquidations or placing under administration of a
company,
– has been subject to an official accusation and/or
sanctions by statutory or regulatory authorities
(including designated professional bodies),
– has been disqualified by a court from acting as a
member of
the administrative, management or
supervisory bodies of an issuer, or from acting in the
management or conduct of the affairs of any issuer;
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6
6
INFORMATION ABOUT
DASSAULT SYSTÈMES SE, THE
SHARE CAPITAL AND THE
OWNERSHIP STRUCTURE
6.1
6.1.1
6.1.2
6.2
6.2.1
6.2.2
6.2.3
6.2.4
6.3
6.3.1
6.3.2
6.3.3
Information about Dassault Systèmes SE
General Information
Memorandum and Specific By‑Laws Provisions
Information About the Share Capital
Share Capital at December 31, 2023
Potential Share Capital
Changes in Dassault Systèmes SE’s Share Capital over the Past Three Years
Share Buyback Programs
Information About the Shareholder Base
Shareholder Base and Double Voting Rights
Control
Agreements Between Shareholders
6.4
Stock Market Information
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340
341
344
344
344
345
346
347
347
349
349
354
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6
Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information about Dassault Systèmes SE
6.1
Information about Dassault Systèmes SE
6.1.1
General Information
6.1.1.1
Commercial Name and Registered Office
Dassault Systèmes
10 rue Marcel Dassault, 78140 Vélizy‑Villacoublay, France
Telephone: +33 (0)1 61 62 61 62
Website: www.3ds.com
It is specified that the information on Dassault Systèmes’
website is not part of this Universal registration document
(with the exception of that expressly
incorporated by
reference in this Universal registration document) and has
not been reviewed or approved by the French Financial
Markets Authority (AMF).
6.1.1.2
Legal form – Applicable Law
– Place of Registration and
Registration Number – APE Code
Dassault Systèmes SE is a European company (Societas
Europaea) incorporated and registered under French law,
with a Board of Directors, governed by the provisions
of Council Regulation (EC) no. 2157/2001 as well as by
French legislative and regulatory provisions in force at
any time (hereinafter the “Law”). It is registered with the
Versailles trade and companies registry under number
322 306 440. Its APE code is 58.29 C. Its LEI code is:
96950065LBWY0APQIM86.
6.1.1.3
Date of Incorporation and Term
Dassault Systèmes SE was incorporated as a limited liability
company (société à responsabilité limitée) on June 9, 1981
for a 99‑year term starting on the date of its registration,
i.e. until August 4, 2080. It was transformed into a public
limited liability company (société anonyme) on April 8, 1993
and then into a European company (Societas Europaea) on
June 15, 2015.
6.1.1.4
Corporate Purpose
Pursuant to Article 2 of its by‑laws, Dassault Systèmes SE’s
corporate purpose, in France and abroad, is:
— the design, development, production, marketing,
purchase, sale, brokerage, rental, maintenance and
provision of after‑sale services of software, digital
content and/or computer hardware;
— the supply and provision of services of data centers,
including the supply of online software solutions
as a service and the operation and supply of the
corresponding infrastructure;
340
— the supply and provision of services to users notably
in the area of training, demonstration, methodology,
display and utilization; and
— the supply and sale of computer resources, together or
separate from the supply or sale of software or services,
notably in the areas of 3D design, modeling, simulation,
manufacturing,
lifecycle
management, business intelligence, marketing or consumer
3D solutions in the domains of products, nature and life.
collaboration,
planning,
The purpose of Dassault Systèmes SE also includes:
— the creation, acquisition, rental and management‑lease
of any on‑going business, the signing of leases, and the
establishment and operation of any facilities;
— the acquisition, operation or sale of any industrial or
intellectual property rights as well as any know‑how in
the field of computers;
— and more generally, taking an interest in any business or
company created or to be created as well as in any legal,
economic, financial,
industrial, civil and commercial,
personal or real property transactions connected directly
or indirectly, in whole or in part, with the purposes above
or any similar or related purposes.
6.1.1.5
Fiscal Year
The 12‑month fiscal year covers the period from January 1 to
December 31 of each year.
6.1.1.6
Branches, Secondary Establishments
Dassault Systèmes SE has no branch. Dassault Systèmes SE
has 21 secondary establishments as of December 31, 2023,
located at the following addresses:
— 5C Route de Saint‑Laurent, 76430 Saint‑Romain‑de‑
Colbosc;
— ZAC du Bois de Côtes – 304 Route National 6,
69760 Limonest;
— 5 rue de l’Halbrane – Technocampus Océan – ZAC Croix
Rouge, 44340 Bouguenais;
— 15 rue Claude Chappe, bâtiment B – Zac des Champs
blancs, 35510 Cesson‑Sevigné;
— Rue Evariste Galois – ZAC St‑Philippe II, lot 24 – Quartier
des Lucioles, 06410 Biot;
— 10 Place de la Madeleine, 75008 Paris;
— 20 Boulevard Eugène Deruelle, bâtiment A – Immeuble
Le Britannia, 69003 Lyon;
— 53 avenue de l’Europe, 13090 Aix‑en‑Provence;
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information about Dassault Systèmes SE
6
— 1‑3 rue Jeanne Braconnier – Immeuble Terre Europa,
6.1.1.7
Documents Available to
the General Public
92360 Meudon;
— 120 rue René Descartes, 29280 Plouzané;
— 37 Chemin des Ramassiers – ZAC des Ramassiers,
31770 Colomiers;
— 1 Allée Lavoisier, 59650 Villeneuve d’Ascq;
— 18 Chemin de Malacher,
Immeuble Le Signal,
38240 Meylan;
— Zac du Perget, Rue Antoine Lavoisier – 31770 Colomiers;
— 1 passage Annette Zelman – 54000 Nancy;
— 233 avenue de Rodez – 12450 Luc‑la‑Primaube;
— 231 rue Pierre et Marie Curie – 31670 Labège;
— 7 B avenue de l’Europe – 31520 Ramonville‑Saint‑Agne;
— Cité de la Photonique Bâtiment Gienah, 11 avenue de
Canteranne – 33600 Pessac;
— 1 avenue de l’Europe – 34830 Clapiers;
— Lot N 19, 48 rue Claude Balbastre – 34070 Montpellier.
Dassault Systèmes SE’s by‑laws, minutes of the General
Meetings and reports of the Board of Directors to the
General Meetings, reports of the Statutory Auditors,
financial statements for the last three years and, more
generally, all documents provided or made available to
shareholders pursuant to the Law may be viewed at Dassault
Systèmes SE’s registered office.
Some of these documents are also available on Dassault
Systèmes’ website (https://investor.3ds.com/).
6.1.2
Memorandum and Specific By‑Laws Provisions
The by‑laws of Dassault Systèmes SE were last amended on
March 12, 2024.
6.1.2.1
Allocation of Profits
(Article 36 of the By‑Laws)
The profits for each year, less any losses from prior periods,
where appropriate, are first allocated to the reserves as
required by Law. An amount of 5% is deducted to form the
legal reserve fund. This deduction ceases to be compulsory
when said fund reaches one‑tenth of share capital; it
becomes compulsory once again when the legal reserve falls
below this amount.
The distributable profit is composed of the profit from the
year less any losses from prior periods as well as the amounts
allocated to reserves as required by Law or the by‑laws, and
increased by retained earnings.
The General Meeting then deducts from this distributable
profit the amounts deemed appropriate to allocate to any
optional, ordinary or special reserves or to the retained
earnings account.
As appropriate, any remaining balance is distributed to all
shares proportionately to the unredeemed paid‑up value.
However, except in the event of a share capital reduction,
no distribution can be made to shareholders if the equity
is, or would be as a result of the distribution, less than the
amount of the share capital plus the reserves that cannot be
distributed under the Law or the by‑laws.
The General Meeting may decide to distribute amounts taken
from available reserves, either to pay or increase a dividend,
or distribute a special dividend. In this case, the resolution
explicitly identifies from which reserves these amounts are
to be withdrawn. Nevertheless, the dividends are distributed
in order of priority starting with the distributable profit of
the year.
After the approval of the financial statements by the General
Meeting, any losses are recorded in a special account and
carried forward against the profits of future years, until they
have been eliminated.
In case of stripping of the ownership of the shares, Article
11 of the by‑laws reserves for beneficial owners the right
to vote on decisions relating to the allocation of profits (see
paragraph 6.1.2.3 “Shares and Voting Rights”).
6.1.2.2
General Meetings
Notice and agenda of meeting
(Articles 25 and 26 of the by‑laws)
General Meetings are convened by the Board of Directors or,
if the Board of Directors fails to convene a General Meeting,
by the Statutory Auditor(s). One or more shareholders who
together hold at least 10% of the subscribed capital may also
request the Board of Directors to call such General Meetings
and set the agenda thereof. The request to convene the
meeting shall set out the items to be put on the agenda.
Notice of the meeting is made through an announcement
placed in a journal of legal notices in the department of the
registered office and in the French Bulletin of required legal
notices (Bulletin des Annonces Légales Obligatoires – BALO).
Shareholders holding registered shares for at least one
month from the date of the announcement are also notified
of all General Meetings by letter sent by standard mail or, at
their request and expense, by registered letter. The General
Meeting cannot be held less than fifteen days after the
announcement is published or the letter is sent to registered
shareholders.
One or more shareholders, representing at least the required
percentage of capital, also have the possibility of requesting
that items and proposed resolutions be added to the agenda
in accordance with the Law.
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Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information about Dassault Systèmes SE
Conditions for admission (Article 27 of the by‑laws)
Every shareholder has the right to participate in General
Meetings either in person or by proxy, provided his/her
shares are fully paid‑up and:
— for holders of registered shares, that they are held in
a registered account (directly or through a financial
intermediary) at 12:00 AM (Paris time) on the second
business day preceding the Meeting;
— for holders of shares in bearer form, that they are
recorded in a bearer securities account maintained by the
accredited intermediary at 12:00 AM (Paris time) on the
second business day preceding the Meeting.
The registration of shares in a bearer securities account
maintained by the accredited intermediary shall be validated
by a shareholding certificate (attestation de participation)
issued by the accredited intermediary to the holder of the
shares. This certificate must be attached to the voting or
proxy form or to the request for an admission card issued in
the shareholder’s name. A certificate can also be issued to
a shareholder who wishes to attend in person the General
Meeting and who has not received an admission card by the
second business day preceding the Meeting.
Shareholders may vote by mail using a form that will be
sent to them under the conditions indicated by the notice
of meeting. The form, duly completed and accompanied, as
the case may be, by a shareholding certificate (attestation de
participation), must be received by Dassault Systèmes SE at
least three days before the date of the General Meeting, or it
will not be taken into consideration.
A shareholder may be represented by any natural person
or legal entity who has been appointed as proxy, under
the conditions provided by Law. The shareholders who are
legal entities are represented by the natural persons duly
authorized to represent them with respect to third parties
or by any person to whom the power of proxy has been
transferred.
A shareholder, who is a non‑French resident as defined in
Article 102 of the French Civil Code, may be represented at
General Meetings by an accredited intermediary registered
according to the provisions of the Law. Such shareholder
will be considered present in calculating the quorum and the
results of voting.
If the Board of Directors so decides when convening the
General Meeting, any shareholder may also participate and
vote at the Meeting by videoconference or by any other
means of telecommunications permitting him/her to be
identified and to participate effectively. Such participation
must comply with the conditions and means provided for by
Law. Such shareholder will be accounted for in calculating
the quorum and the results of voting.
Actions required to amend shareholders’ rights
(Articles 13, 31 and 32 of the by‑laws)
Only an Extraordinary General Meeting can amend
shareholders’ rights in compliance with the provisions of the
Law.
Except as may be otherwise provided for under the provisions
of the Law and with the exception of reverse share splits
carried out in accordance with the Law, no majority may
impose on shareholders an increase in their commitments.
If new classes of shares are created, only an Extraordinary
General Meeting and a Special Meeting of Shareholders of
the specific class of shares may approve an amendment to
the rights of these classes of shares.
6.1.2.3
Shares and Voting Rights
Rights, privileges and restrictions attached to each
class of shares (Articles 13, 29 and 39 of the by‑laws)
All the shares are of the same class and carry, under Dassault
Systèmes SE’s by‑laws, the same rights to the allocation
of profits and any amounts distributed in the event of
liquidation (see paragraph 6.1.2.1 “Allocation of Profits
(Article 36 of the by‑laws)”). However, a double voting right
is awarded to any fully paid‑up share held in registered form
for at least two consecutive years in the name of the same
holder (see the paragraph “Double voting rights (Article 29 of
the by‑laws)” below).
Conditions for exercising voting rights
(Articles 11 and 29 of the by‑laws)
The voting rights attached to equity shares or deferred shares
is proportional to the portion of capital they represent.
Voting is carried out by show of hands, by roll call or by
secret ballot, as decided by the secretariat of the Meeting
or the shareholders. Shareholders may also vote by mail, by
videoconference or by any other means of communication,
in accordance with the by‑laws. For the calculation of the
majority, the votes cast shall not include votes attaching to
shares in respect of which the shareholder has abstained or
has returned a blank or invalid ballot.
In case the ownership of a share is divided, the voting
right attached to the share belongs to the bare owner
(nu‑propriétaire), except for the decisions relating to the
allocation of profits for which it belongs to the beneficial
owner (usufruitier).
Double voting rights (Article 29 of the by‑laws)
Each share gives the right to one vote. Nevertheless, since
2002, a double vote has been awarded to all fully paid‑up
shares held in registered form for at least two consecutive
years in the name of the same holder. In the case of a capital
increase by incorporation of reserves, profits or premiums,
this double voting right will be attached on the date of
their issuance to free registered new shares allotted to a
shareholder in consideration for his or her old shares giving
rise to such right.
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6
Under the Law, any share converted into a bearer share or
changing hands shall lose the right to the double voting right
except in the case of a transfer from a registered account to
another registered account following an inheritance or a gift
inter vivos to a spouse or a relative entitled to succeed to the
donor’s estate. The double voting right may also be canceled
by a resolution of the shareholders at an Extraordinary
General Meeting, provided the approval of the Special
Meeting of Shareholders having a double voting right.
Limitations on voting rights
The by‑laws contain no restrictions on the exercise of voting
rights attached to Dassault Systèmes SE’s shares except in
the event of stripping of the ownership of the shares (see the
paragraph “Conditions for exercising voting rights Articles 11
and 29 of the by‑laws” above).
6.1.2.4
Declarations Concerning Crossing
of the Ownership Thresholds
(Article 13 of the By‑Laws)
In addition to the legal obligation to inform Dassault
Systèmes SE and the French Financial Markets Authority
(AMF) in the event a shareholder’s interest crosses the
thresholds set out
in Article L. 233‑7 of the French
Commercial Code, any natural person or legal entity, acting
alone or in concert with others, who directly or indirectly
least 2.5% of Dassault
holds shares representing at
Systèmes SE’s share capital or voting rights, or a multiple
thereof up to 50%, must inform Dassault Systèmes SE of
the total number of shares or voting rights it holds whenever
such thresholds are crossed, whether over or under. This
information must be sent to Dassault Systèmes SE by
registered letter with return receipt requested, within four
trading days following the date of acquisition or disposal of
the shares.
in each declaration that
The shareholder must certify
it includes all shares or voting rights held or owned, in
accordance with Article L. 233‑7 et seq. of the French
Commercial Code. The declaration must also indicate the
date or dates on which the acquisitions or disposals occurred.
In the event of non‑compliance with this requirement, the
shares exceeding the fraction of 2.5% which should have
been declared will lose their voting rights, upon the request
recorded in the minutes of the General Meeting of one or
more shareholders holding a portion of Dassault Systèmes SE
share capital or voting rights equal to at least 2.5% of the
share capital or voting rights. The voting rights will be lost
for all general meetings held until the expiration of two years
following the date on which the required declaration is made.
6.1.2.5
Terms in the By‑Laws, a Charter or
Regulation of Dassault Systèmes SE
Which Could Delay, Postpone or
Prevent a Change in Control
Other than the aforementioned double voting right (see
paragraph 6.1.2.3 “Shares and Voting Rights”) and the
reporting obligation when holdings exceed 2.5% (see
paragraph 6.1.2.4 “Declarations Concerning Crossing of the
Ownership Thresholds (Article 13 of the By‑Laws)”), Article
10 of the by‑laws provides that Dassault Systèmes SE may,
at any time and in compliance with the provisions of the
Law, request that a central depositary maintaining its share
register provides it with the name (or corporate name for
legal entities), the nationality, the year of birth or the year
of incorporation and the postal and, where applicable, email
address of holders of Dassault Systèmes SE’s shares in bearer
form which grant, immediately or over time, the right to vote
at General Meetings of Shareholders, as well as the number
of shares held by each of these shareholders and, where
appropriate, any restrictions applicable to such shares.
6.1.2.6
Terms in the By‑Laws Concerning
Modifications in Share Capital Which
are More Restrictive Than the Law
The by‑laws of Dassault Systèmes SE do not contain any
provisions governing changes in share capital, which are
more restrictive than those provided by Law.
6.1.2.7
Terms in the By‑Laws Concerning
the Directors and Members of
the Executive Team (Articles 14,
15 and 19 of the By‑Laws)
Dassault Systèmes SE is administrated by a Board of
Directors established in accordance with the Law. Directors
shall be appointed for four years, renewed or revoked by
shareholders at an Ordinary General Meeting. The number
of directors aged seventy or over cannot exceed half the
members of the Board of Directors at any time. The Board of
Directors also includes two directors representing employees,
appointed by each of the two trade union organizations
that have obtained the highest number of votes in the first
round of the Social and Economic Committee members in
the Company and its direct or indirect subsidiaries whose
registered office is located on French territory.
From among its individual members, the Board of Directors
shall elect a Chairman who may not be more than eighty‑five
years of age, and set his or her term of office. The Chairman
shall organize and supervise the work of the Board of
Directors and reports on the same at the General Meeting
of Shareholders, and shall watch over the running of the
corporate bodies of the Company. The Board of Directors
may also elect a Vice chairman who will serve as Chairman
on an interim basis, in the case of (i) a temporary incapacity
or death of the Chairman or (ii) an absence or unavailability
of the Chairman to preside over a meeting of the Board of
Directors.
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Depending on the decision of the Board of Directors, the
general management of the Company shall be undertaken
either by the Chairman of the Board of Directors or by
another individual appointed by the Board of Directors and
who shall take the title of Chief Executive Officer. The Chief
Executive Officer may not be more than seventy‑five years
old. The Chief Executive Officer shall be vested with the
broadest powers to act under any circumstance on behalf of
the Company which he represents in its dealings with third
parties. He or she shall exercise these powers within the
limits of the corporate purpose and subject to the powers
expressly attributed by Law, the Company’s bylaws and the
Board’s internal regulation to shareholders meetings and
the Board of Directors. The Chief Executive Officer may be
dismissed at any time by the Board of Directors. If dismissal
is without cause, costs for damages and related interest may
arise, unless the Chief Executive Officer is also Chairman of
the Board of Directors.
Upon the proposal of the Chief Executive Officer, the
Board of Directors may appoint one or more individuals,
whether directors or not, to assist the Chief Executive
Officer as Deputy CEO. The Deputy CEO may not be more
than seventy‑five years old. In agreement with the Chief
Executive Officer, the Board of Directors determines the
extent and duration of the powers granted to each Deputy
CEO. In dealings with third parties, each Deputy CEO has the
same powers as the Chief Executive Officer. The Deputy CEO
may be dismissed at any time by the Board of Directors, at
the proposal of the Chief Executive Officer. If dismissal is
without cause, costs for damages and related interest may
arise. In the event of the death, resignation or dismissal of
the Chief Executive Officer, each Deputy CEO shall retain his/
her position and duties until the appointment of a new Chief
Executive Officer, unless otherwise decided by the Board of
Directors.
6.2
Information About the Share Capital
6.2.1
Share Capital at December 31, 2023
As of December 31, 2023, the number of shares making up Dassault Systèmes SE’s share capital was 1,337,916,433, fully
paid‑up, with a nominal value of €0.10 each, corresponding to a share capital amount of €133,791,643.30 (1).
6.2.2
Potential Share Capital
As of December 31, 2023, outstanding share subscription
options, whether or not exercisable, would, if all were
exercised, result in the issuance of 24,763,785 new shares,
representing 1.82% of Dassault Systèmes SE’s share capital
at that date (on a diluted basis).
On the same date, based on the closing price of its shares
on December 31, 2023 (€44.24 per share), the exercise of
all exercisable issued options, whose exercise price was less
than that closing price, would have resulted in the issuance
of 18,929,104 new shares, representing 1.40% of Dassault
Systèmes SE’s share capital at that date (on a diluted basis).
The dilutive effect per share is also set forth in Note 11 to the
consolidated financial statements.
In connection with the acquisition of SolidWorks in 1997,
Dassault Systèmes SE issued shares to the holders of share
subscription options and warrants issued by SolidWorks
prior to this acquisition. These Dassault Systèmes SE shares
have historically been held by Dassault Systèmes SE’s
wholly owned U.S. subsidiary, SW Securities LLC. No other
SolidWorks share subscription options or warrants remain
outstanding at this time. As of December 31, 2023, SW
Securities LLC held 2,518,070 shares, or approximately
0.19% of share capital at that date. As the shares held by SW
Securities LLC are to be considered as treasury shares, they
do not carry voting rights and are not eligible for dividends.
Other than the share subscription options granted
in
connection with stock option plans and performance share
allocations as described in paragraph 5.1.4 “Summary of
the Compensation and Benefits due to Corporate Officers
(Mandataires Sociaux)” and paragraph 5.1.5 “Interests of
Executive Management and Employees in the Share Capital
of Dassault Systèmes SE”, there are no other securities giving
a right to subscribe Dassault Systèmes SE shares, and there
is no agreement which could result in a capital increase.
(1) The amount of share capital and number of shares at December 31, 2023, takes into account the share subscription options exercised since September 1, 2023, but not yet
acknowledged by the Board of Directors.
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Pledge of shares
To Dassault Systèmes SE’s knowledge, there was no pledge of Dassault Systèmes SE shares in registered form and
representing a significant portion of its share capital as of December 31, 2023.
6.2.3
Changes in Dassault Systèmes SE’s Share
Capital over the Past Three Years
Nominal
amount of
changes in
share capital
(in euros)
Amount of
share capital
(in euros)
Number of
shares created
or canceled
Total number
of shares
Nominal
value of the
shares
(in euros)
583,972.50
132,711,132
1,167,945
265,422,264
0.50
250,959
‑
132,962,091
132,962,091
501,918
265,924,182
‑ 1,329,620,910
0.50
0.10
430,505
133,392,596
4,305,050 1,333,925,960
0.10
344,328
‑430,505
133,736,924
133,306,419
3,443,280 1,337,369,240
‑4,305,050 1,333,064,190
0.10
0.10
221,136.30 133,527,555.30
2,211,363 1,335,275,553
0.10
468,851.50 133,996,406.80
4,688,515 1,339,964,068
0.10
Date
Transaction
February 28, 2021 Capital increase resulting
from the exercise of share
subscription options
June 29, 2021
July 07, 2021
January 20, 2022
Capital increase resulting
from the exercise of share
subscription options
Five‑for‑one stock split (1)
Capital increase as part of
the TOGETHER employee
shareholding plan
February 28, 2022 Capital increase resulting
from the exercise of share
subscription options
Capital reduction
March 15, 2022
February 28, 2023 Capital increase resulting
from the exercise of share
subscription options
Capital increase as part of
the TOGETHER II employee
shareholding plan
Capital increase resulting
from the exercise of share
subscription options
August 31, 2023
June 15, 2023
September 20, 2023 Reduction in share capital by
cancellation of shares
‑468,851.50 133,644,971.20
‑4,688,515 1,336,449,712
117,415.90 134,113,822.70
1,174,159 1,341,138,227
0.10
0.10
February 29, 2024 Capital increase resulting
from the exercise of share
subscription options
198,565.10 133,843,536.30
1,985,651 1,338,435,363
0.10
The changes in equity resulting from transactions through December 31, 2023 set forth above are included in the
“Consolidated Statements of Shareholders’ Equity” in the consolidated financial statements.
(1) Following the five‑for‑one split of the nominal value of the Dassault Systèmes’ share on July 7, 2021, the number of shares was multiplied by five. The total number of
shares therefore increased from 265,924,182 to 1,329,620,910.
6
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 6
Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information About the Share Capital
6.2.4
Share Buyback Programs
6.2.4.1
Transactions Carried out by
Dassault Systèmes SE in 2023
During the 2023 fiscal year, Dassault Systèmes SE purchased,
under the authorizations granted to the Board of Directors
by the General Meetings of May 19, 2022 and May 24, 2023
a total of 10,470,495 of its own shares (excluding shares
acquired through the liquidity agreement, a report of which
is presented below).
These shares were purchased at an average price of
€37.10 per share, giving a total cost of €388,438,302
(excluding tax). The transaction costs paid by Dassault
Systèmes SE in connection with these repurchased shares
amounted to €63,992.25 (including tax), to which
is
added the tax on financial transactions for an amount of
€639,922.50.
These 10,470,495 shares were allocated to the following
objectives:
— to cover Dassault Systèmes SE’s obligations resulting
to Dassault Systèmes’
attributions
share
from
employees: 5,781,980 shares;
— cancellation: 4,688,515 shares.
The shares repurchased before 2023 were allocated in 2023
to the following purposes:
— covering Dassault Systèmes SE’s obligations resulting
from share allocations to Dassault Systèmes’ employees
decided prior to 2023: 17,885,869 shares;
— cancellation: 0 shares;
— liquidity agreement entered into with Oddo BHF SCA
mentioned below: 712,286 shares.
Dassault Systèmes SE directly held, on December 31,
2023, a total of 20,617,884 of its own shares (including
400,987 shares through the liquidity agreement) of a
nominal value of €0.10 each, which had been repurchased
at an average price of €37.56, representing approximately
1.54% of the share capital at that date. Out of these
20,617,884 shares, a total of 20,216,897 shares are at the
disposal of Dassault Systèmes SE and are allocated to cover
the Dassault Systèmes SE obligations resulting from share
allocations to Dassault Systèmes employees.
On January 5, 2015, Dassault Systèmes SE entered into a
liquidity agreement with Oddo BHF SCA, complying with the
Code of Ethics of the AFEI (French association of investment
firms) recognized by the French Financial Markets Authority
(AMF), implemented as of January 7, 2015 for an initial period
ending on December 31, 2015, automatically renewable for
subsequent 12‑month terms. This agreement was amended
twice in 2017 and 2018, increasing the resources assigned
to the liquidity agreement to €20 million. The agreement
was amended on June 18, 2019, to comply with the new
requirements of AMF Decision no. 2018‑01 of July 2, 2018,
since replaced by AMF Decision no. 2021‑01 of June 22,
2021.
346
During fiscal year 2023, a total of 3,096,015 shares were
purchased and 3,407,314 shares were sold within the
framework of the liquidity agreement. As of December 31,
2023, the following resources appeared on the liquidity
account:
— 400,987 Dassault Systèmes shares; and
— €20,906,622.09 in cash.
During fiscal year 2023, Dassault Systèmes SE has not
entered into any transactions on derivative securities linked
to its shares nor has it purchased or sold any of its shares
through the exercise or maturity of derivative securities.
6.2.4.2
Description of the Share Buyback
Program Proposed to the General
Meeting on May 22, 2024
Pursuant to Article 241‑2 et seq. of the French Financial
Markets Authority (AMF) General Regulation and Article
L. 451‑3 of the French Monetary and Financial Code, and
in accordance with European Regulations, the terms and
objectives of the Dassault Systèmes SE’s share buyback
program that will be submitted for approval at the General
Meeting of May 22, 2024, are described below.
Breakdown of treasury shares by objectives
As of December 31, 2023, Dassault Systèmes SE
held 20,617,884 of
shares directly and
its own
These
2,518,070
20,617,884 shares were allocated to the following objectives:
indirectly
(treasury
shares).
— to
cover Dassault
obligations
resulting from share attributions to employees of
Dassault Systèmes SE or of an affiliated company:
20,216,897 shares; and
Systèmes
SE’s
— a
liquidity agreement signed with Oddo BHF SCA
June 18, 2019:
January 5, 2015, updated on
on
400,987 shares.
Objectives of the new repurchase program
1) To cancel shares for the purpose of increasing the
profitability of shareholders’ equity and earnings per
share, subject to approval by the Extraordinary General
Meeting of the resolution permitting shares to be
canceled.
2) To meet obligations related to stock option allocations
or other allocations of shares to employees or Corporate
Officers (mandataires sociaux) of Dassault Systèmes SE
or of an affiliated company.
3) To provide shares upon exercise of rights attached to
marketable securities giving access to the share capital of
Dassault Systèmes SE.
4) To maintain an active market or provide liquidity for
Dassault Systèmes shares through the intermediary of
an investment services provider by means of a liquidity
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information About the Shareholder Base
6
contract complying with the French Financial Markets
Authority (AMF)’s accepted market practice.
5) To implement any stock‑exchange market practice which
may be accepted by law or by the French Financial
Markets Authority (AMF).
The General Shareholders’ Meeting of May 22, 2024 will
also be asked to authorize the Board of Directors to cancel,
as the case may be, all or part of the shares which it may
repurchase in connection with the share buyback program
and to carry out the corresponding reduction in share capital.
6) To deliver shares in the context of external growth
transactions by Dassault Systèmes SE or an affiliated
company, in particular through mergers, demergers,
partial demergers or contributions in kind.
Maximum amount allocated to the share
buyback program, maximum number and
characteristics of the securities that Dassault
Systèmes SE proposes to acquire
Objectives 1 to 3 above comply with the terms of
paragraph 2, Article 5 of European Regulation no. 596/2014
dated April 16, 2014, and objective 4 complies with
Decision no. 2021‑01 of June 22, 2021 taken by the French
Financial Markets Authority (AMF). Objective 5 complies
with provisions of Article 13 of European Regulation
no. 596/2014 dated April 16, 2014. Objective 6 does not
benefit from a presumption of legitimacy but it is in the
interest of the Company to have such a possibility, referred
to in Article L. 22‑10‑62 of the French Commercial Code.
The Board of Directors is authorized to repurchase Dassault
Systèmes shares representing up to 25 million shares. The
maximum amount of the funds used for the purpose of
buying back shares is set at €1 billion.
Duration of the share buyback program
The program would last about 12 months, starting on the
General Meeting of May 22, 2024. The authorization granted
by the General Meeting to the Board of Directors should
be valid until the Ordinary General Meeting approving the
financial statements for the fiscal year ending December 31,
2024.
6.3
Information About the Shareholder Base
6.3.1
Shareholder Base and Double Voting Rights
The table below sets forth certain information concerning
Dassault Systèmes SE’s shareholder base over the last
three fiscal years. Pursuant to position/recommendation
No. 2021‑02 of the French Financial Markets Authority
(AMF), it specifies:
— the theoretical or “gross” voting rights, taking into
account the voting rights attached to the shares without
voting rights, in accordance with Article 223‑11 of the
(AMF) General
French Financial Markets Authority
Regulation and used as a denominator by shareholders to
calculate their percentage of shares held and voting rights
for the purposes of regulatory declarations (in particular
the declarations with regards to crossing thresholds); and
— the voting rights that can be exercised at the General
Meeting or “net” voting rights, not taking into account
shares without voting rights.
Double voting rights are attributed to all fully paid‑up shares
held in registered form for at least two consecutive years in
the name of the same holder.
The major shareholders of Dassault Systèmes SE do not hold
voting rights different from those of other shareholders
(such as double voting rights).
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 6
Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information About the Shareholder Base
Shareholders
AT DECEMBER 31, 2023
Groupe Industriel Marcel Dassault
Charles Edelstenne (1)
Bernard Charlès (2)
Pascal Daloz
Treasury shares(3)
Indirect treasury shares (4)
Public
TOTAL
AT DECEMBER 31, 2022
Groupe Industriel Marcel Dassault
Charles Edelstenne (1)
Bernard Charlès (2)
Pascal Daloz
Treasury shares (3)
Indirect treasury shares (4)
Public
TOTAL
As of December 31, 2021
Groupe Industriel Marcel Dassault
Charles Edelstenne (1)
Bernard Charlès (2)
Treasury shares (3)
Indirect treasury shares (4)
Directors and executives (5)
Public
TOTAL
Shares
% of
capital
Theoretical
voting rights
% of
theoretical
voting rights
Voting rights
exercisable in the
General Meeting
% of voting rights
exercisable in the
General Meeting
535,449,840
79,871,475
34,023,570
3,174,295
20,617,884
2,518,070
662,261,299
1,337,916,433
535,449,840
79,681,475
33,273,570
2,974,295
18,598,155
2,518,070
662,544,303
1,335,039,708
40.02% 1,070,899,680
159,358,900
65,797,140
5,848,590
20,617,884
2,518,070
683,714,914
100% 2,008,755,178
5.97%
2.55%
0.24%
1.54%
0.19%
49.49%
40.11% 1,070,899,680
159,168,900
5.97%
63,547,140
2.49%
5,348,590
0.22%
18,598,155
1.39%
2,518,070
0.19%
680,993,183
49.63%
100% 2,001,073,718
535,449,840
79,487,425
31,773,570
15,640,473 (2)
2,518,070
10,035,160
657,812,115
1,332,716,653
5.96%
2.39%
1.17%
0.19%
0.75%
49.36%
40.18% 1,070,149,680
158,585,350
60,547,140
15,640,473
2,518,070
17,670,380
668,132,978
100% 1,993,244,071
7.93%
3.27%
0.29%
1.03%
0.13%
34.04%
53.31% 1,070,899,680
159,358,900
65,797,140
5,848,590
‑
‑
683,714,914
100% 1,985,619,224
7.95%
3.17%
0.27%
0.93%
0.13%
34.03%
53.52% 1,070,899,680
159,168,900
63,547,140
5,348,590
‑
‑
680,993,183
100% 1,979,957,493
53.69% 1,070,149,680
158,585,350
60,547,140
‑
‑
17,670,380
663,737,206
100% 1,970,689,756
7.96%
3.04%
0.78%
0.13%
0.88%
33.52%
53.93%
8.03%
3.31%
0.30%
–
–
34.43%
100%
54.09%
8.04%
3.21%
0.27%
–
–
34.39%
100%
54.30%
8.05%
3.08%
–
–
0.89%
33.68%
100%
(1)
(2)
Including shares held in two family companies managed by Mr. Edelstenne.
At December 31, 2023, Mr. Edelstenne held 21,711,007 shares with all ownership rights and 16,910 shares through two family companies which he manages, representing a total
of 1.62% of the capital and 2.17% of the exercisable voting rights, as well as 58,143,558 shares with “beneficial” rights (usufruit). For the beneficial rights with respect to these
58,143,558 shares, representing 5.85% of the exercisable voting rights, Mr. Edelstenne can only exercise the voting rights on decisions of the General Meeting of Shareholders concerning
the allocation of profits; the holders of the bare ownership rights (nue‑propriété) exercise the voting rights for other resolutions in compliance with Article 11 of the by‑laws.
For details related to the Company shares held by Mr. Edelstenne at December 31, 2022 and December 31, 2021, see paragraph 6.3.1. of the Universal registration
documents (“URD”) for 2022 and 2021, respectively.
Including shares and voting rights held by Mr Charlès’ wife and children. As their proxy, Mr Charlès exercises the voting rights for all resolutions submitted to the General
Meeting of Shareholders. Personally, Mr. Charlès held (i) at 31 December 2023, 25,202,205 shares representing 1.88% of the share capital, and 48,150,410 exercisable
voting rights, i.e. 2.43% of the exercisable voting rights, (ii) at 31 December 2022, 24,452,205 shares representing 1.83% of the share capital, and 45,904,410 exercisable
voting rights, i.e. 2.32% of exercisable voting rights, and (iii) at 31 December 2021, 22,952,205 shares representing 1.72% of the share capital and 42,904,410 exercisable
voting rights, i.e. 2.18% of exercisable voting rights.
Including 400,987 shares through the liquidity agreement as of December 31, 2023. As of December 31, 2022, this number was 712,286 shares.
(3)
(4) SW Securities LLC. This company is a Dassault Systèmes subsidiary; the Dassault Systèmes’ shares held by it do not have voting rights.
(5) The executives concerned are those listed in paragraph 5.1.2 “Executives of Dassault Systèmes” of the 2022 and 2021 URDs.
The overall number of theoretical voting rights amounted
to 2,008,755,178 as of December 31, 2023 (the number of
exercisable voting rights was 1,985,619,224). The difference
between the number of theoretical and exercisable voting
rights is explained by the direct and indirect treasury shares.
Investment Management
MFS
notified
Dassault Systèmes SE that as of September 17, 2015 the
funds managed by companies within its group held more
than 2.5% of the company’s capital.
(MFS)
BlackRock, Inc. further advised Dassault Systèmes SE that,
as of September 4, 2019, it held more than 2.5% of the
company’s capital.
No other shareholders, except as indicated above, declared
holding 2.5% (threshold set forth in by‑laws) or more than
5% of the company’s share capital or voting rights, directly
348
or indirectly, alone or in agreement with other shareholders,
pursuant to shareholders’ reporting obligations.
Although Dassault Systèmes SE voluntarily delisted its shares
from NASDAQ in October 2008, it continues to maintain its
ADR (“American Depositary Receipts”) program, which are still
traded on the U.S. over‑the‑counter market (see paragraph 6.4
“Stock Market Information”). On December 31, 2023, there
were 24,227,042 American Depositary Shares
(“ADS”)
outstanding, and the number of recorded ADS holders, holding
them either for themselves or for third parties, was 38.
In December 2023, Dassault Systèmes SE commissioned
a survey on the composition of its shareholder base from
an external specialized services provider. According to this
survey, institutional investors holding more than 5,000 shares
each numbered 769, and they held 42.7% of the Dassault
Systèmes SE share capital as of December 31, 2023.
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information About the Shareholder Base
6
As of December 31, 2023, Dassault Systèmes SE held
400,987 shares under the liquidity agreement entered into
with Oddo BHF SCA and 20,216,897 treasury shares. Of
these 20,216,897, 5,687,102 shares were bought back during
the buyback program adopted by the General Meeting of
May 24, 2023 and the remainder, i.e. 14,529,795 shares,
under previous buybacks. These 20,216,897 shares
represent approximately 1.51% of the share capital as of
December 31, 2023, with no voting rights or dividend rights
attached to them.
At December 31, 2023, a total of 701,665,141 Dassault
Systèmes shares (i.e. approximately 52.44% of the capital)
are held
in registered form, providing entitlement to
1,349,737,970 exercisable voting rights (i.e. approximately
67.19% of the gross voting rights).
The number of Dassault Systèmes’ shares held by
employees,
in accordance with Article L. 225‑102 of
the French Commercial Code, was 21,249,798 shares at
December 31, 2023, or approximately 1.59% of the total
number of shares on that date. This percentage was 1.38%
as of December 31, 2022.
6.3.2
Control
Groupe
Industriel Marcel Dassault SAS (GIMD), which
belongs to the Dassault family and whose Supervisory
Board is exclusively composed of and chaired by members
of the Dassault family, is the main shareholder of Dassault
Systèmes SE with, as of December 31, 2023, 40.02% of the
share capital and 53.93% of the exercisable voting rights
(i.e. 53.31% of theoretical voting rights). With more than
50% of the voting rights of Dassault Systèmes SE held by
GIMD, the Dassault family ultimately controls Dassault
Systèmes. The Chairman of GIMD until January 2025 is
Charles Edelstenne, Founder and Honorary Chairman of
Dassault Systèmes SE.
The Board of Directors of Dassault Systèmes SE is made
up of 50% of independent directors (1), i.e. a proportion
exceeding the requirement stipulated in the AFEP‑MEDEF
Code for controlled companies. All the Committees under
the Board (Audit Committee, Compensation and Nomination
Committee and Scientific Committee) are fully composed of
independent directors, as a guarantee of a balanced exercise
of control by GIMD.
6.3.3
Agreements Between Shareholders
In 2011, 2013, 2014, 2015, 2017, 2018, 2019, 2020, 2022 and 2023, Dassault Systèmes was informed about collective
undertakings concluded concerning the holding of shares whose characteristics are summarized in the tables hereafter in
accordance with French Financial Markets Authority (AMF) Position/Recommendation no. 2021‑02.
Collective undertakings concluded in 2023
System
Date of signing
Duration of collective undertakings
Contractual duration of the agreement
Conditions for renewal
Capital and voting rights % concerned by the agreement
(as at September 30, 2023)
Names of the signatories having the capacity of
executives (1)
Name(s) of the signatory (ies) having close links with
executives
Names of the signatories holding at least 5% of the capital
and/or voting rights of Dassault Systèmes SE
Article 787 B of the French Tax Code
October 27, 2023
At least two years
Undetermined with cases of termination
No specific conditions stipulated
23.67% of the share capital
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel Dassault SAS
Groupe Industriel Marcel Dassault SAS
Mr. Charles Edelstenne and beneficiaries (2)
(1) Pursuant to Article 975 III, 1, 1° of the French Tax Code.
(2) See Note 1 under the table of paragraph 6.3.1 “Shareholder Base and Double Voting Rights”.
(1) Directors representing employees are not taken into account for the calculation of the number of independent directors, in compliance with the recommendations of the
AFEP‑MEDEF Code.
6
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 6
Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information About the Shareholder Base
Collective undertakings concluded in 2022
System
Date of signing
Duration of collective undertakings
Contractual duration of the agreement
Conditions for renewal
Capital and voting rights % concerned by the agreement
(as at March 31, 2022)
Names of the signatories having the capacity of
executives (1)
Name(s) of the signatory (ies) having close links with
executives
Names of the signatories holding at least 5% of the capital
and/or voting rights of Dassault Systèmes SE
Article 787 B of the French Tax Code
April 26, 2022
At least two years
Undetermined with cases of termination
No specific conditions stipulated
23.66% of the share capital
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel Dassault SAS
Groupe Industriel Marcel Dassault SAS
Mr. Charles Edelstenne and beneficiaries (2)
(1) Pursuant to Article 975 III, 1, 1° of the French Tax Code.
(2) See Note 1 under the table of paragraph 6.3.1 “Shareholder Base and Double Voting Rights”.
Collective undertakings concluded in 2020
System
Date of signing
Duration of collective undertakings
Contractual duration of the agreement
Conditions for renewal
Capital and voting rights % concerned by the agreement
(at its date of execution)
Names of the signatories having the capacity of
executives (1)
Name(s) of the signatory (ies) having close links with
executives
Names of the signatories holding at least 5% of the capital
and/or voting rights of Dassault Systèmes SE
Article 787 B of the French
Tax Code
May 06, 2020
At least two years
Undetermined with cases of
termination
No specific conditions
stipulated
23.95% of the share capital
Article 787 B of the French
Tax Code
November 06, 2020
At least two years
Undetermined with cases of
termination
No specific conditions
stipulated
24.00% of the share capital
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne
and beneficiaries (2)
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne
and beneficiaries (2)
(1) Pursuant to Article 975 III, 1, 1° of the French Tax Code.
(2) See Note 1 under the table of paragraph 6.3.1 “Shareholder Base and Double Voting Rights”.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information About the Shareholder Base
6
Collective undertakings concluded in 2019
System
Date of signing
Duration of collective
undertakings
Contractual duration of
the agreement
Conditions for renewal
Capital and voting rights
% concerned by the
agreement (at its date of
execution)
Names of the signatories
having the capacity of
executives (1)
Name(s) of the signatory
(ies) having close links
with executives
Names of the signatories
holding at least 5%
of the capital and/or
voting rights of Dassault
Systèmes SE
Article 787 B of the French
Tax Code
January 21, 2019
At least two years
Article 787 B of the French
Tax Code
September 02, 2019
At least two years
Article 787 B of the French
Tax Code
September 02, 2019
At least two years
Undetermined with cases of
termination
No specific conditions
stipulated
24.10% of the share capital
Undetermined with cases of
termination
No specific conditions
stipulated
27.79% of the share capital
Undetermined with cases of
termination
No specific conditions
stipulated
29.98% of the share capital
Mr. Charles Edelstenne
Mr. Bernard Charlès
Mr. Charles Edelstenne
Mr. Bernard Charlès
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne and
beneficiaries (2)
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne
and beneficiaries (2)
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne
and beneficiaries (2)
(1) Pursuant to Article 975 III, 1, 1° of the French Tax Code.
(2) See Note 1 under the table of paragraph 6.3.1 “Shareholder Base and Double Voting Rights”.
Collective undertakings concluded in 2018
System
Date of signing
Duration of collective undertakings
Contractual duration of the agreement
Conditions for renewal
Capital and voting rights % concerned by the agreement
(at its date of execution)
Names of the signatories having the capacity of
executives (1)
Name(s) of the signatory (ies) having close links with
executives
Names of the signatories holding at least 5% of the capital
and/or voting rights of Dassault Systèmes SE
Article 787 B of the French Tax Code
April 24, 2018
At least two years
Undetermined with cases of termination
No specific conditions stipulated
24.30% of the share capital
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel Dassault SAS
Groupe Industriel Marcel Dassault SAS
Mr. Charles Edelstenne and beneficiaries (2)
(1) Pursuant to Article 975 III, 1, 1° of the French Tax Code.
(2) See Note 1 under the table of paragraph 6.3.1 “Shareholder Base and Double Voting Rights”.
6
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
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Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information About the Shareholder Base
Collective undertakings concluded in 2017
System
Date of signing
Duration of collective undertakings
Contractual duration of the agreement
Conditions for renewal
Capital and voting rights % concerned by the agreement
(at its date of execution)
Names of the signatories having the capacity of
executives (1)
Name(s) of the signatory (ies) having close links with
executives
Names of the signatories holding at least 5% of the capital
and/or voting rights of Dassault Systèmes SE
Article 787 B of the French Tax Code
March 30, 2017
At least two years
Undetermined with cases of termination
No specific conditions stipulated
24.52% of the share capital
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel Dassault SAS
Groupe Industriel Marcel Dassault SAS
Mr. Charles Edelstenne and beneficiaries (2)
(1) Pursuant to Article 885 O bis of the French Tax Code, now Article 975 III, 1.1 of the French Tax Code.
(2) See Note 1 under the table of paragraph 6.3.1 “Shareholder Base and Double Voting Rights”.
Collective undertakings concluded in 2015
System
Date of signing
Duration of collective undertakings
Contractual duration of the agreement
Conditions for renewal
Capital and voting rights % concerned by the agreement
(at its date of execution)
Names of the signatories having the capacity of
executives (1)
Name(s) of the signatory (ies) having close links with
executives
Names of the signatories holding at least 5% of the capital
and/or voting rights of Dassault Systèmes SE
Article 787 B of the French
Tax Code
December 17, 2015
At least two years
Undetermined with cases of
termination
No specific conditions
stipulated
24.85% of the share capital
Article 787 B of the French
Tax Code
December 17, 2015
At least two years
Undetermined with cases of
termination
No specific conditions
stipulated
24.66% of the share capital
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne
and beneficiaries (2)
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne
and beneficiaries (2)
(1) Pursuant to Article 885 O bis of the French Tax Code.
(2) See Note 1 under the table of paragraph 6.3.1 “Shareholder Base and Double Voting Rights”.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Information About the Shareholder Base
6
Collective undertakings concluded in 2014
System
Date of signing
Duration of collective undertakings
Contractual duration of the agreement
Conditions for renewal
Capital and voting rights % concerned by the agreement
(at its date of execution)
Names of the signatories having the capacity of
executives (1)
Name(s) of the signatory (ies) having close links with
executives
Names of the signatories holding at least 5% of the capital
and/or voting rights of Dassault Systèmes SE
Article 787 B of the French
Tax Code
February 27, 2014
At least two years
Undetermined with cases of
termination
No specific conditions
stipulated
25.0% of the share capital
Article 787 B of the French
Tax Code
December 16 and 17, 2014
At least two years
Undetermined with cases of
termination
No specific conditions
stipulated
24.7% of the share capital
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne
and beneficiaries (2)
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne
and beneficiaries (2)
(1) Pursuant to Article 885 O bis of the French Tax Code.
(2) See Note 1 under the table of paragraph 6.3.1 “Shareholder Base and Double Voting Rights”.
System
Date of signing
Duration of collective undertakings
Contractual duration of the agreement
Conditions for renewal
Capital and voting rights % concerned by the agreement (at
its date of execution)
Names of the signatories having the capacity of
executives (1)
Name(s) of the signatory (ies) having close links with
executives
Names of the signatories holding at least 5% of the capital
and/or voting rights of Dassault Systèmes SE
Collective undertakings
concluded in 2013
Collective undertakings
concluded in 2011
Article 787 B of the French
Tax Code
October 29, 2013
At least two years
Undetermined with cases of
termination
No specific conditions
stipulated
28.2% of the share capital
Article 787 B of the French
Tax Code
July 11, 2011
At least two years
Undetermined with cases of
termination
No specific conditions
stipulated
29.6% of the share capital
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne
and beneficiaries (2)
Mr. Charles Edelstenne
Mr. Bernard Charlès
Groupe Industriel Marcel
Dassault SAS
Groupe Industriel Marcel
Dassault SAS
Mr. Charles Edelstenne
and beneficiaries (2)
(1) Pursuant to Article 885 O bis of the French Tax Code.
(2) See Note 1 under the table of paragraph 6.3.1 “Shareholder Base and Double Voting Rights”.
The same shares can be subject to several joint lock‑up agreements.
6
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
6
Information about Dassault Systèmes SE, the Share Capital and the Ownership structure
Stock Market Information
6.4
Stock Market Information
Stock exchange
in the form of ADS
Shares of Dassault Systèmes have been
listed on
Compartment A of Euronext Paris (ISIN code FR0014003TT8)
since June 28, 1996. Its shares were also listed on the
NASDAQ
(American Depositary
Shares) under the symbol DASTY until October 16, 2008.
The ADS are still traded under this symbol on the U.S.
over‑the‑counter (OTC) market. One ADS represents one
ordinary share (see paragraph 6.3.1 “Shareholder Base and
Double Voting Rights”).
For dividend policy, see the paragraph 7.1 “Presentation of
the Resolutions Proposed by the Board of Directors to the
General Meeting of May 22, 2024”.
Share price history and trading volumes of Dassault Systèmes’ shares in Paris in 2023
(in euros except for Volume of Shares Traded)
January 2023
February 2023
March 2023
April 2023
May 2023
June 2023
July 2023
August 2023
September 2023
October 2023
November 2023
December 2023
Volume of
shares traded
Share price on
last day of
the month
Highest share
price during
the month
Lowest share
price during
the month
29,283,043
28,664,603
31,625,285
22,283,255
31,658,024
24,423,057
19,902,333
23,696,979
20,311,075
28,316,714
24,856,091
20,358,915
34.06
36.58
37.88
36.67
41.11
40.63
38.89
36.61
35.30
38.82
42.97
44.24
35.84
38.51
38.09
38.06
41.11
41.68
41.37
38.89
36.68
38.82
43.13
44.84
33.53
36.58
36.04
34.89
35.61
38.98
37.48
35.57
34.39
33.96
39.00
43.13
Person responsible for financial communications
Béatrix Martinez
Vice‑President, Investor Relations
To obtain all financial information and documents
published by Dassault Systèmes SE, please contact:
Indicative timetable for the publication
of financial information for 2024
— First quarter of 2024: April 25, 2024
— Second quarter of 2024: July 25, 2024
— Third quarter of 2024: October 24, 2024
— Fourth quarter of 2024: February 04, 2025
Investor Relations Service
10, rue Marcel Dassault – CS 40501
78946 Vélizy‑Villacoublay Cedex – France
Telephone: +33 (0)1 61 62 69 24
email: investors@3ds.com
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 7
7
General Meeting
MEETING 7
GENERAL
7.1
7.1.1
7.1.2
7.1.3
7.1.4
7.1.5
7.1.6
7.1.7
7.1.8
7.1.9
7.1.10
7.1.11
7.2
Presentation of the Resolutions Proposed by the Board
of Directors to the General Meeting of May 22, 2024
Annual Financial Statements and Allocation of Earnings (1st and 3rd resolutions)
Consolidated Financial Statements (2nd resolution)
Related‑Party Agreements (4th resolution)
Appointment of PricewaterhouseCoopers Audit as Auditor in charge of Certifying
Sustainability Reporting (5th resolution)
Compensation Elements Paid or Granted in 2023 to Mr. Charles Edelstenne,
Mr. Bernard Charlès and Mr. Pascal Daloz (7th, 8th and 9th resolutions)
Information Contained in the Corporate Governance Report Relating to the
Compensation of Corporate Officers (Mandataires Sociaux) (Article L. 22‑10‑9, I
of the French Commercial Code) (10th resolution)
Compensation Policy for Corporate Officers (Mandataires Sociaux) (6th resolution)
Reappointment and appointment of Directors (11th and 12th resolutions)
Authorization to Repurchase Shares of Dassault Systèmes
(13th and 14th resolutions)
Financial Authorizations for Issuances Reserved for Employees
and Corporate Officers (Mandataires Sociaux) (15th and 16th resolutions)
Authorizations for Mergers, Demergers and Partial Demergers
(17th to 22nd resolutions)
Text of the Draft Resolutions Proposed by the Board of Directors
to the General Meeting of May 22, 2024
356
356
357
357
358
358
363
364
364
364
365
366
366
7
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
7
General Meeting
Presentation of the Resolutions Proposed by the Board of Directors to the General Meeting of May 22, 2024
7.1
Presentation of the Resolutions Proposed
by the Board of Directors to the General
Meeting of May 22, 2024
7.1.1
Annual Financial Statements and Allocation of Earnings
(1st and 3rd resolutions)
It is proposed to approve the annual financial statements of
Dassault Systèmes SE (or the “Company” for the purposes
of this Chapter 7 “General Meeting”) for the year ended
December 31, 2023, prepared on the basis of French
accounting principles, as they have been presented in
paragraph 4.2 “Parent Company Financial Statements”.
Dassault Systèmes SE has paid dividends every year since
1986. The decision to distribute dividends and their amount
depends on the profits and the financial position of Dassault
Systèmes SE as well as other factors. Dividends which have
been distributed but are not collected by a shareholder
revert to the French State at the end of the five‑year period
following the date of their payment.
Based on the financial statements and the management
report of the Board of Directors included in this Universal
registration document, a profit of €861,164,184.28(1) was
realized for the year ended December 31, 2023, which we
propose that you allocate as follows:
– to the legal reserve
– to a special reserve account (2)
– for distribution to the 1,337,916,433 shares forming the share capital at 12/31/2023
of a dividend of (€0.23 x 1,337,916,433)(3)
– to retained earnings
which, increased by the retained earnings from previous years of €3,451,199,096.21,
brings the amount of retained earnings to
€28,767.25
€0
€307,720,779.59
€553,414,637.44
€4,004,613,733.65
In compliance with Article 238 bis AB, paragraph 5 of the French General Tax Code.
(1) This profit, increased by the retained earnings from previous years of €3,451,199,096.21, results in a distributable profit of € 4,312,363,280.49.
(2)
(3) The aggregate amount of the dividend will be adjusted according to the number of new shares created between January 1, 2024, and the date of this General Meeting,
mainly as a result of the exercise of share subscription options, it being specified that the maximum number of shares that may derive from the exercise of options is
19,550,781, representing a maximum additional dividend of €4,496,679.63.
Further new shares created, by the exercise of subscription
options, until the date of the annual General Meeting deciding
on the allocation of profit related to the preceding year will
receive the dividend distributed with respect to that year (see
paragraph 5.1.5 “Interests of Executive Management and
Employees in the Share Capital of Dassault Systèmes SE”).
Systèmes SE and (ii) the Dassault Systèmes’ shares held by
SW Securities LLC, a company which is controlled by Dassault
Systèmes SE, will be allocated to “retained earnings”, in
accordance with the provisions of Article L. 225‑210 of the
French Commercial Code and the contractual provisions in
force between SW Securities LLC and Dassault Systèmes SE.
It is thus proposed that the General Meeting of May 22, 2024,
resolve to distribute, in respect of fiscal year 2023, a dividend
of €0.23 per share making up the capital as at the date of
the Meeting, corresponding (i) based on the number of
shares making up the share capital at December 31, 2023, to
an overall amount of €307,720,779.59 and (ii) if applicable,
a maximum overall additional amount of €4,496,679.63,
corresponding to the maximum number of new shares that
may be created further to the exercise of share subscription
options between January 1, 2024 and the date of the General
Meeting (i.e. 19,550,781 shares).
Shares will be traded ex‑dividend on May 27, 2024 and the
dividend will be paid on May 29, 2024.
On the date of payment, the amount of the dividend
(i) the treasury shares of Dassault
corresponding to
In addition, prior to distribution of the dividend, the Board
of Directors, or if so authorized, the Chief Executive Officer
will determine the number of additional shares issued as a
result of the exercise of share subscription options between
January 1, 2024 and the date of this General Meeting
of May 22, 2024. The amount required for payment of
dividends for shares issued during this period will be taken
from “retained earnings”.
The amount thus distributed to individual shareholders
resident in France for tax purposes will be, where applicable:
— either subject to a flat‑rate withholding tax of 30%
(12.8% non‑discharging flat‑rate withholding tax paid
as income tax and 17.2% social security withholding)
(Article 117 quater of the French Tax Code);
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT General Meeting
Presentation of the Resolutions Proposed by the Board of Directors to the General Meeting of May 22, 2024
7
— or, if an individual option is expressly and irrevocably
exercised each year across the board for all income
from securities, taken
in determining
shareholders’ total income subject to the progressive
rate of income tax for the year in which it is received
(Article 200 A of the French Tax Code), after application
of an uncapped deduction of 40% (Article 158, 3, 2° of
into account
the French Tax Code). Dividends taxed at the progressive
rate of income tax are also subject to social security
contributions at a rate of 17.2%.
Pursuant to Article 243 bis of the French Tax Code, it is noted
that dividends per share paid over the last three years have
been as follows:
Year
2022
2021
2020
Dividend (1) (in euros)
Number of shares eligible for dividends
0.21
1,315,586,120
0.17
1,314,896,795
0.11 (2)
1,313,041,750 (3)
(1) Dividend 100% eligible for the 40% deduction provided for in Article 158, 3, 2° of the French Tax Code.
(2) After adjustment in order to reflect the five‑for‑one stock split of the nominal value of Dassault Systèmes’ shares in effect as of July 7, 2021.
(3) The number of shares indicated take into account the nominal value of Dassault Systèmes shares being split by five, in effect as of July 7, 2021.
In accordance with the provisions of Article 223 quater of the
French Tax Code, we draw your attention to the aggregate
amount of the expenses and charges referred to in Article
39.4 of the French Tax Code that are non‑deductible from
taxable income, which amounted to €2,824,646 and resulted
in corporate tax of €729,606.
7.1.2
Consolidated Financial Statements (2nd resolution)
In addition to the 2023 annual financial statements, it is also proposed to approve Dassault Systèmes SE’s consolidated
financial statements for the year ended December 31, 2023, prepared in accordance with IFRS as described in paragraph 4.1.1
“Consolidated Financial Statements” of this Universal registration document.
7.1.3
Related‑Party Agreements (4th resolution)
The
in
following agreements, which were approved
accordance with Articles L. 225‑38 et seq. of the French
Commercial Code, were continued during the year ended
December 31, 2023. These are undertakings made by the
Company in connection with its “Directors and Corporate
Officers Liability Insurance Policy”:
— to reimburse the cost of legal defense of directors in
the event of their personal liability being sought and
indemnify the directors for the financial implications of
such liability and payment of the costs in relation with
legal defense related thereto, to the extent they would
not be covered by that insurance policy (approved by the
Board of Directors’ meeting held on June 28, 1996);
— to assume, under certain conditions, the cost of legal
defense of Directors of Dassault Systèmes SE should
they have to prepare their personal defense before a civil,
criminal or administrative court in the United States in
connection with an inquiry or investigation conducted
against Dassault Systèmes SE (approved by the Board of
Directors’ meeting held on September 23, 2003).
These agreements were reviewed by the Board of Directors
at its meeting on March 12, 2024, in accordance with the
provisions of Article L. 225‑40‑1 of the French Commercial
Code.
The Auditors have prepared a special report pursuant to
Articles L. 225‑40 and L. 225‑40‑1 of the French Commercial
Code (Code de commerce), as set forth in paragraph 4.2.4
“Statutory Auditors’ Report on Related Party Agreements
and Commitments”.
The General Meeting has been requested to acknowledge
this report which refers to no new agreements.
7
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 7
General Meeting
Presentation of the Resolutions Proposed by the Board of Directors to the General Meeting of May 22, 2024
7.1.4
Appointment of PricewaterhouseCoopers Audit as Auditor in
charge of Certifying Sustainability Reporting (5th resolution)
From 2025, Dassault Systèmes SE will publish sustainability
reporting, starting with fiscal 2024, pursuant to the
provisions of Ordinance No. 2023‑1142 of December 6, 2023,
regarding the publication and certification of sustainability
reporting and the environmental, social and corporate
governance obligations of commercial companies. This is
the transposition of EU Corporate Sustainability Reporting
Directive No. 2022/2464 (known as the “CSRD”). The first
publication of this information will appear in the Universal
registration document 2024.
In
light of this, and as recommended by the Audit
Committee, the General Meeting will be asked to approve the
appointment of PricewaterhouseCoopers Audit as Auditor in
charge of certifying the Company’s sustainability reporting
and issuing a certification report thereon. Pursuant to the
provisions of Article L. 821‑26 of the French Commercial
Code, the certification assignment shall be carried out on
behalf of PricewaterhouseCoopers Audit by a natural person
who is a partner, shareholder or manager of that company,
and who is duly registered on the list of auditors authorized
to certify sustainability reporting that is kept by the French
Audit Authority (Haute autorité de l’audit), in accordance
with Article L. 821‑13 of the French Commercial Code.
The Board of Directors considered that PricewaterhouseCoopers
Audit’s in‑depth understanding of the Company’s challenges
and operations as part of its assignment to certify the financial
statements will be particularly useful for implementing these
new regulations. The appointment of PricewaterhouseCoopers
Audit for this new assignment
its
appointment as Independent Third Party in respect of the
consolidated non‑financial performance statement for fiscal
year 2023, as well as its work on the EU taxonomy for fiscal
years 2022 and 2023. This will also strengthen the connection
between financial reporting and sustainability reporting.
is an extension of
the
total amounts
received by
Information about
PricewaterhouseCoopers Audit for services other than the
certification of sustainability reporting can be found in
documents made available to shareholders in accordance
with Article L. 225‑108 of the French Commercial Code. It
will be updated annually. Information about the amounts
paid to each of the statutory auditors will be made available
to shareholders at Dassault Systèmes SE’s registered office.
Notwithstanding the provisions of Article L. 821‑44 of the
French Commercial Code, and pursuant to Article 38 of
Ordinance No. 2023‑1142 of December 6, 2023, regarding
the publication and certification of sustainability reporting
and the environmental, social and corporate governance
obligations of commercial companies, it is proposed that
the term of this assignment be three fiscal years, expiring at
the close of the General Meeting of Shareholders called to
approve the financial statements for the 2026 fiscal year.
7.1.5
Compensation Elements Paid or Granted in 2023
to Mr. Charles Edelstenne, Mr. Bernard Charlès and
Mr. Pascal Daloz (7th, 8th and 9th resolutions)
It should be noted that:
— Mr. Charles Edelstenne served as Chairman of the Board
of Directors until January 8, 2023;
— Mr. Bernard Charlès served as Vice chairman of the Board
of Directors and Chief Executive Officer until January 8,
2023, then Chairman & Chief Executive Officer from
January 9, 2023. Since January 1, 2024 he has been
Executive Chairman of the Board of Directors of Dassault
Systèmes SE;
— Mr. Pascal Daloz served as Deputy CEO & Chief Operating
Officer from January 9, 2023, to December 31, 2023.
Since January 1, 2024, he has been Chief Executive
Officer of Dassault Systèmes SE.
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Presentation of the Resolutions Proposed by the Board of Directors to the General Meeting of May 22, 2024
7
Pursuant to the provisions of Article L. 22‑10‑34, II of the
French Commercial Code, the General Meeting will be
asked to approve the compensation elements paid in 2023
or granted with respect to 2023 to Mr. Charles Edelstenne,
Mr. Bernard Charlès and Mr. Pascal Daloz in their capacity
as executive officers. These compensation elements are
summarized in the tables below (see also paragraph 5.1‑
“The Board’s Corporate Governance Report”). The payment
of the variable compensations of the Chief Executive Officer
and the Deputy CEO & Chief Operating Officer with respect
to 2023 is subject to the General Meeting’s approval of their
compensation elements for 2023. As Mr. Charles Edelstenne
did not receive any variable or exceptional compensation
in his capacity as Chairman of the Board of Directors, this
condition does not apply to him.
7.1.5.1
Compensation Elements Paid or Granted in 2023 to Mr. Charles Edelstenne,
Chairman of the Board of Directors until January 8, 2023 (1)
Compensation granted with respect to 2023
Compensation elements
Amount
(in euros)
Observations
Fixed compensation (2)
19,318
47,438
N/A
N/A
N/A
Annual variable
compensation
Deferred annual variable
compensation
Multi‑year variable
compensation
Compensation allocated to
directors in respect of the
directorship (3)
Extraordinary compensation N/A
N/A
Share subscription options
and/or performance share
awards
Indemnity upon start or
termination of function
Non‑compete indemnity
Additional retirement plan
Benefits in kind (4)
N/A
N/A
4
N/A
At its meeting of March 14, 2023, the Board of Directors set out the amount of
annual fixed compensation for Mr. Charles Edelstenne at €1,020,000, unchanged
from 2022 and 2021, i.e. €19,318 for the period from January 1 to 8, 2023. This
compensation was paid in 2023.
Mr. Charles Edelstenne receives no annual variable compensation.
Mr. Charles Edelstenne receives no deferred annual variable compensation.
Mr. Charles Edelstenne receives no multi‑year variable compensation.
Gross compensation amount allocated for 2023.
This compensation was paid at the beginning of 2024.
Mr. Charles Edelstenne receives no extraordinary compensation.
Mr. Charles Edelstenne does not hold any share subscription options and was not
granted any performance shares.
Mr. Charles Edelstenne receives no indemnity upon start or termination of function.
Mr. Charles Edelstenne receives no non‑compete indemnity.
No additional retirement plan was implemented by Dassault Systèmes SE.
These benefits in kind are linked to mandatory supplemental medical coverage.
(1) All compensation paid by Dassault Systèmes SE to Mr. Charles Edelstenne is paid by Dassault Systèmes SE, a company incorporated under the laws of France.
(2) See also paragraph 5.1.3.1 “Compensation of Mr. Charles Edelstenne, Chairman of the Board of Directors until January 8, 2023” of the Universal registration document
2022. In 2023, Groupe Industriel Marcel Dassault SAS (GIMD) paid Mr. Charles Edelstenne gross compensation of €1,066,990 for his role as Chairman of GIMD.
(3) See also paragraph 5.1.3.4 “Directors’ Compensation” of the Universal registration document 2022 regarding the conditions for distributing the annual budget allocated
to Directors of Dassault Systèmes SE.
In 2023, GIMD granted benefits in kind to Mr. Charles Edelstenne related to the use of a car for an estimated value of €4,920.
(4)
As a reminder:
Compensation granted with respect to 2022 and paid in 2023
Compensation elements
Compensation allocated to
directors in respect of their
directorship
Amount
(in euros)
64,750
Observations
Gross compensation amount allocated for 2022.
This compensation was paid at the beginning of 2023.
7
359
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 7
General Meeting
Presentation of the Resolutions Proposed by the Board of Directors to the General Meeting of May 22, 2024
7.1.5.2
Compensation Elements Paid or Granted in 2023 to Mr. Bernard Charlès, Vice
chairman of the Board of Directors and Chief Executive Officer until January 8,
2023, then Chairman & Chief Executive Officer until December 31, 2023 (1)
At its meeting of March 14, 2023, the Board of Directors
decided, on the recommendation of the Compensation
and Nomination Committee, that Mr. Bernard Charlès’
compensation for his new position as Chairman & Chief
Executive Officer would be identical to the amount he
received in his role as Chief Executive Officer. It is recalled
that, throughout his term of office as Vice chairman of the
Board of Directors until January 8, 2023, Mr. Bernard Charlès
was not entitled to any compensation in respect of this role.
Compensation granted with respect to 2023
Compensation elements
Amount
(in euros)
Observations
Fixed compensation (2)
1,445,000
Annual variable
compensation (2)
1,445,000
66,562
N/A
N/A
Deferred annual variable
compensation
Multi‑year variable
compensation
Compensation allocated to
directors in respect of the
directorship (3)
Extraordinary compensation N/A
Granting of share
subscription options and/or
performance share awards (5)
(6)
Indemnity upon start or
termination of function
N/A
Non‑compete indemnity
Additional retirement plan
Benefits in kind
N/A
N/A
19,485
Gross fixed compensation for 2023 decided by the meeting of the Board of
Directors of March 14, 2023, on the recommendation of the Compensation and
Nomination Committee. This compensation was paid in 2023.
Variable gross compensation with respect to 2023 actually earned and decided by the
Board of Directors of March 12, 2024, upon the proposal of the Compensation and
Nomination Committee. The methods for determining this compensation are set out in
Table 2 “Summary of the Compensation of Each Executive Officer” in paragraph 5.1.4.
This compensation will be paid in 2024 subject to approval by the General Meeting of
May 22, 2024 of the compensation elements for Mr. Bernard Charlès for 2023.
Mr. Bernard Charlès receives no deferred annual variable compensation.
Mr. Bernard Charlès receives no multi‑year annual variable compensation.
Gross compensation amount allocated for 2023.
This compensation was paid at the beginning of 2024.
Mr. Bernard Charlès receives no extraordinary compensation.
43,815,000 (4) Mr. Bernard Charlès was granted 1,500,000 “2023‑B” shares by the Board of
Directors’ meeting on May 24, 2023 (as part of the process of associating him with
the Company’s capital) (7).
Mr. Bernard Charlès was the beneficiary, subject to certain conditions, until December
31, 2023, of an indemnity upon the termination of his functions, the amount of which
was not to exceed two years’ compensation and depended on the achievement of
performance conditions established for the calculation of his variable compensation.(6)
Mr. Bernard Charlès receives no non‑compete indemnity.
No additional retirement plan was implemented.
These benefits in kind are linked to a mandatory supplemental medical coverage and
use of a vehicle made available to Mr. Bernard Charlès by Dassault Systèmes SE.
(1) All compensation paid by the Company to Mr. Bernard Charlès is paid by Dassault Systèmes SE, a company incorporated under the laws of France.
(2) See also paragraph 5.1.3.2 “Compensation of Mr. Bernard Charlès, Vice chairman of the Board of Directors and Chief Executive Officer until January 8, 2023, then Chairman
& Chief Executive Officer” of the Universal registration document 2022. Mr Bernard Charlès will not receive any variable annual remuneration in respect of 2024.
(3) See also paragraph 5.1.3.4 “Directors’ Compensation” of the Universal registration document 2022 regarding the conditions for distributing the annual budget allocated
to Directors of Dassault Systèmes SE.
(4) Value based on the method chosen for the consolidated financial statements before the spreading of the expense and taking into account the performance criteria.
(5) Such shares are granted to Mr. Bernard Charlès as part of the gradual process of associating him with the Company’s capital that began several years ago, with the aim
of recognizing his entrepreneurial role for over 35 years with Dassault Systèmes SE and providing him with an equity stake comparable to that of founders of companies
in the same sector, or more generally, of his peers in technology companies around the world. Mr Bernard Charlès will not benefit from any new allocation of Dassault
Systèmes shares in 2024.
(6) See also paragraph 5.1.3.2 “Compensation of Mr. Bernard Charlès, Vice chairman of the Board of Directors and Chief Executive Officer until January 8, 2023, then Chairman
& Chief Executive Officer” of the Universal registration document 2022.
(7) This number corresponds to the number of shares granted to Mr. Bernard Charlès in previous years (300,000), before the nominal value of the Dassault Systèmes shares
was split by five on July 7, 2021.
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As a reminder:
Compensation granted with respect to 2022 and paid in 2023
Compensation elements
Annual variable
compensation
Amount
(in euros)
1,590,000
Compensation allocated to
directors in respect of their
directorship
44,750
Observations
Variable gross compensation with respect to 2022 actually earned and decided by the
Board of Directors of March 14, 2023, upon the proposal of the Compensation and
Nomination Committee.
This compensation was paid in 2023 following approval by the General Meeting of the
compensation elements of Mr. Bernard Charlès.
Gross compensation amount allocated for 2022.
This compensation was paid at the beginning of 2023.
7.1.5.3
Compensation Elements for 2023 for Mr. Pascal Daloz, Deputy CEO
& Chief Operating Officer from January 9 to December 31, 2023 (1)
Mr. Pascal Daloz could not be compensated for his term
as Deputy CEO & Chief Operating Officer before the
General Meeting of Shareholders of May 24, 2023, which
approved the compensation policy that applies to him. His
employment agreement and the compensation allocated
to this role therefore remained in force until May 24, 2023,
(inclusive), Mr. Pascal Daloz’s resignation from his salaried
position having taken effect on May 25, 2023.
The table below takes
into account all compensation
elements granted to Mr. Pascal Daloz in respect of 2023,
including those in respect of his employment agreement
which ran until the General Meeting of May 24, 2023.
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Presentation of the Resolutions Proposed by the Board of Directors to the General Meeting of May 22, 2024
Compensation granted with respect to 2023
Compensation elements
Amount
(in euros)
Observations
Fixed compensation (2)
700,224
Annual variable
compensation (2)
735,000
47,000
N/A
N/A
Deferred annual variable
compensation
Multi‑year variable
compensation
Compensation allocated to
directors in respect of the
directorship (3)
Extraordinary compensation N/A
Share subscription options
and/or performance share
awards (5)
Indemnity upon start or
termination of function
N/A
Non‑compete indemnity
N/A
Additional retirement plan
Benefits in kind
N/A
7,091
Benefits related to
employment agreement
40,679
in respect of 2023 corresponding to (i) the fixed
Gross fixed compensation
compensation he received under his employment agreement for the period between
January 1 and May 24, 2023, and (ii) the fixed compensation he received from May 25,
2023, in his capacity as Deputy CEO & Chief Operating Officer, as set by the Board
of Directors on March 14, 2023, on the recommendation of the Compensation and
Nomination Committee.
This compensation was paid in 2023.
Variable gross compensation with respect to 2023 actually earned and decided by the
Board of Directors of March 12, 2024, upon the proposal of the Compensation and
Nomination Committee. This amount includes the variable compensation paid under
the employment agreement for the period between January 1 and May 24, 2023, and
that paid from May 25, 2023, in respect of the office of Deputy CEO & Chief Operating
Officer.
The methods for determining this compensation are set out in Table 2 “Summary of
the Compensation of Each Executive Officer” in paragraph 5.1.4.
Mr. Pascal Daloz’s variable compensation in his capacity as Deputy CEO & Chief
Operating Officer will be paid in 2024 subject to approval by the General Meeting of
May 22, 2024, of the compensation elements of Mr. Pascal Daloz for 2023.
Mr. Pascal Daloz receives no deferred variable compensation.
Mr. Pascal Daloz receives no multi‑year variable compensation.
Gross compensation amount allocated for 2023.
This compensation was paid at the beginning of 2024.
Mr. Pascal Daloz receives no extraordinary compensation.
meeting of May 24, 2023.
Mr. Pascal Daloz will receive, subject to certain conditions, an indemnity upon
the termination of his functions, the amount of which will not exceed two years’
compensation and will depend on the achievement of performance conditions
established for the calculation of his variable compensation (5).
Mr. Pascal Daloz receives no non‑compete indemnity.
As part of his salaried position, he was entitled to a non‑compete indemnity described
in paragraph 5.1.3.3 “Compensation of the Deputy CEO & Chief Operating Officer”
of the Universal registration document 2022. His employment agreement ended on
May 25, 2023.
No additional retirement plan was implemented.
These benefits in kind are linked to mandatory supplemental medical coverage and the
reimbursement of travel expenses.
Profit‑sharing and vacation pay.
13,144,500 (4) Mr. Pascal Daloz was granted 450,000 2023‑A shares by the Board of Directors at its
(1) All compensation paid by Dassault Systèmes SE to Mr. Pascal Daloz is paid by Dassault Systèmes SE, a company incorporated under the laws of France.
(2) See also paragraph 5.1.3.3 “Compensation of the Deputy CEO & Chief Operating Officer” of the Universal registration document 2022.
(3) See also paragraph 5.1.3.4 “Directors’ Compensation” of the Universal registration document 2022 regarding the conditions for distributing the annual budget allocated
to Directors of Dassault Systèmes SE.
(4) Value based on the method chosen for the consolidated financial statements before the spreading of the expense and taking into account the performance criteria.
(5) See also paragraph 5.1.3.3 “Compensation of the Deputy CEO & Chief Operating Officer” of the Universal registration document 2022.
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As a reminder:
Compensation granted with respect to 2022 and paid in 2023
Compensation elements
Annual variable
compensation
Amount
(in euros)
546,000
Compensation allocated to
directors in respect of their
directorship
44,750
Observations
Gross variable compensation under his employment agreement for the period from
January 1 to December 31, 2022.
As a reminder, Mr. Pascal Daloz served as Chief Operating Officer and Chief Financial
Officer in 2022.
Gross compensation amount allocated for 2022.
This compensation was paid at the beginning of 2023.
7.1.6
Information Contained in the Corporate Governance
Report Relating to the Compensation of Corporate
Officers (Mandataires Sociaux) (Article L. 22‑10‑9, I
of the French Commercial Code) (10th resolution)
In accordance with the provisions of Article L. 22‑10‑34, I of the French Commercial Code, the following information is
submitted for your approval:
Information referred to in section I of Article L. 22‑10‑9 of the French Commercial Code
Total compensation and benefits of any kind paid or allocated in 2023 and the relative
proportion of fixed and variable compensation
See paragraphs 5.1.4 and 5.1.5
Use of the option of requesting the repayment of variable compensation
Undertakings made by the Company in connection with the termination or change of office or
subsequent to the performance of such office and the estimated amount liable to be paid on
that basis
Any compensation paid or granted by a company within the scope of consolidation
Equity ratios
Annual change in compensation, the Company’s performance, average compensation on a
full‑time equivalent basis of the Company’s employees (other than management) and equity
ratios over the last five or more fiscal years
Explanation of how the total compensation reflects the compensation policy adopted, including
how it contributes to the long‑term performance of the Company, and how the performance
criteria have been applied.
Taking into account the vote of the last Ordinary General Meeting provided for in Article
L. 22‑10‑34, I of the French Commercial Code
Any deviation from the procedure for implementing the compensation policy and any
derogation applied
Application of the provisions of the second paragraph of Article L. 225‑45 of the French
Commercial Code (irregular composition of the Board of Directors)
N/A
See paragraph 5.1.3.2
N/A
See paragraph 5.1.4
See paragraph 5.1.4
See paragraph 5.1.4
N/A
N/A
N/A
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Presentation of the Resolutions Proposed by the Board of Directors to the General Meeting of May 22, 2024
7.1.7
Compensation Policy for Corporate Officers
(Mandataires Sociaux) (6th resolution)
In accordance with the provisions of Articles L. 22‑10‑8, I and
R. 22‑10‑14 of the French Commercial Code, the corporate
governance report (see paragraph 5.1.3 “Compensation
(Mandataires Sociaux)”)
Policy
for Corporate Officers
describes the compensation policy for corporate officers
set by the Board of Directors, submitted for your approval
in accordance with Article L. 22‑10‑8, II of the French
Commercial Code.
7.1.8
Reappointment and appointment of Directors
(11th and 12th resolutions)
The directorship of Ms. Laurence Daures is due to expire at
the close of the General Meeting of May 22, 2024.
It is proposed to re‑elect her for a four‑year term, i.e. until the
General Meeting called to approve the financial statements
for the year ending December 31, 2027.
Ms. Laurence Daures is an independent director and lead
director, as well as a member of the Audit Committee and
Chair of the Compensation and Nomination Committee. She
has a solid financial background, holding a PhD in finance,
having served as an associate professor in the Finance
Department of the ESSEC Business School since 2010,
and serving as an affiliated researcher with the Center for
Research in Economics and Statistics (CREST). Ms. Laurence
Daures’s full biography can be found in paragraph 5.1.1.1
“Composition of the Board of Directors”.
At its meeting of March 12, 2024, the Company’s Board
of Directors reviewed the independence of Ms. Laurence
Daures in light of eight independence criteria set out in the
AFEP‑MEDEF Code (see paragraph 5.1.1.1 “Composition of
the Board of Directors”). As each of these criteria was met,
the Board concluded that she was independent, acting on
the recommendation of the Compensation and Nomination
Committee in which Ms. Laurence Daures did not take part.
The directorship of Ms. Marie‑Hélène Habert‑Dassault is also due
to expire at the close of the General Meeting of May 22, 2024.
Ms. Marie‑Hélène Habert‑Dassault is a member of the
Supervisory Board of Groupe Industriel Marcel Dassault SAS
(GIMD), which belongs to the Dassault family and whose
Supervisory Board is exclusively composed of and chaired
exclusively by members of the Dassault family. It is proposed
to appoint as director Groupe Industriel Marcel Dassault SAS
(GIMD) represented by Ms. Marie‑Hélène Habert‑Dassault,
for a four‑year term, i.e. until the General Meeting called
to approve the financial statements for the year ending
December 31, 2027.
Ms. Marie‑Hélène Habert‑Dassault’s full biography can be found
in paragraph 5.1.1.1 “Composition of the Board of Directors”.
The targets applicable to the Board’s composition can be
found in paragraph 5.1.1.1 “Composition of the Board of
Directors”. If the above proposals are approved, the Board
of Directors would have 10 members, excluding directors
representing employees, including 50% women and 50%
independent directors. These proportions go beyond the
legal requirements and recommendations of the AFEP‑
MEDEF Code (1).
All of the Board’s committees would remain wholly
composed of independent directors.
Ms. Laurence Daures will remain lead director, as well
as member of the Audit Committee and Chair of the
Compensation and Nomination Committee.
7.1.9
Authorization to Repurchase Shares of Dassault Systèmes
(13th and 14th resolutions)
The authorization to repurchase shares of the Company
granted to the Board of Directors at the General Meeting of
May 24, 2023 will expire at the General Meeting of May 22,
2024. Within the framework of this authorization, share
buybacks were carried out in 2023 (these transactions are
described in paragraph 6.2.4 “Share Buyback Programs”) and
also in early 2024. They were carried out for the purposes
of covering the Company’s obligations resulting from share
allocations, canceling a portion of the shares bought back,
and maintaining an active market and providing liquidity for
Dassault Systèmes shares. An active market is maintained by
an investment services provider operating under a liquidity
(1) 1 As a reminder, the proportion of female representation and independent directors does not include the directors representing employees, in accordance with Articles
10.3 of the AFEP‑MEDEF Code and Articles L. 225‑27‑1 and L. 22‑10‑7 of the French Commercial Code, respectively.
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agreement between Dassault Systèmes SE and Oddo BHF
SCA. This agreement was amended in 2019 to comply with
the new requirements of Decision No. 2018‑01 of July 2,
2018 of the French Financial Markets Authority (AMF), since
replaced by AMF Decision No. 2021‑01 of June 22, 2021, and
was tacitly renewed for the 2024 fiscal year.
Any share buybacks made between January 1, 2024, and the
date of the General Meeting will be described in the Universal
registration document for the year ending December 31,
2024.
It is proposed to reauthorize the Board of Directors to
repurchase Dassault Systèmes’ shares, in accordance with
Articles L. 22‑10‑62 et seq. of the French Commercial
Code, within a limit of 25 million shares, i.e. approximately
1.87% of the share capital as of December 31, 2023, within
the limits set by the applicable regulations. The maximum
amount of funds dedicated to the repurchase of Dassault
Systèmes shares may not exceed €1 billion.
Should you approve this proposal, the authorization will
be valid until the Annual General Meeting approving the
financial statements for the year ending December 31, 2024.
This authorization may be used for the following purposes:
1) to cancel shares for the purpose of increasing the
profitability of shareholders’ equity and earnings per
share, subject to approval by the Extraordinary General
Meeting of the resolution permitting shares to be
canceled;
2) to meet obligations related to stock option allocations
or other allocations of shares to employees or Corporate
Officers (mandataires sociaux) of Dassault Systèmes SE
or of an affiliated company;
3) to provide shares upon exercise of rights attached to
marketable securities giving access to the share capital of
Dassault Systèmes SE;
4) to maintain an active market or provide liquidity for
Dassault Systèmes shares through the intermediary of
an investment services provider by means of a liquidity
contract complying with the French Financial Markets
Authority (AMF)’s accepted market practice;
5) to implement any stock‑exchange market practice which
may be accepted by law or by the French Financial
Markets Authority (AMF);
6) to deliver shares in the context of external growth
transactions by Dassault Systèmes SE or an affiliated
company, in particular through mergers, demergers,
partial demergers or contributions in kind.
The acquisition, sale, transfer or exchange of such shares
may be completed at any time in accordance with the
applicable legal provisions and regulations except during a
public offering period.
The share buyback program is described in this Universal
registration document in paragraph 6.2.4 “Share Buyback
Programs”, where all relevant information is presented.
In light of the possible cancellation of the repurchased
shares, we propose that you also authorize the Board of
Directors to cancel, as the case may be, for the same period,
all or a portion of the shares which it has repurchased and to
reduce in a corresponding amount the share capital, within a
limit of 5% of its amount per 24‑month period.
7.1.10 Financial Authorizations for Issuances Reserved for
Employees and Corporate Officers (Mandataires Sociaux)
(15th and 16th resolutions)
The compensation policy
implemented by Dassault
Systèmes must serve the ability to attract, to motivate and
to retain key employees and executives with the diversity of
talents and the high level of skills required for the Company’s
various activities, the competition in the labor market for
such employees being intense.
The members of the Executive team and key employees of
Dassault Systèmes may be granted long‑term incentives
notably through allocations of performance shares or options
to subscribe to Dassault Systèmes shares.
Dassault Systèmes’ employees also had the opportunity to
subscribe to collective employee shareholding operations
launched in 2021 and 2023 (see paragraph 5.1.5. “Interests
of Executive Management and Employees in the Share
Capital of Dassault Systèmes SE”).
Capital increase reserved for employees
To enable the implementation of employee shareholding
operations, it is proposed to authorize the Board of Directors
to increase the share capital reserved for members of a
corporate savings plan.
To facilitate the structuring of this offer in certain countries
outside France, it is also proposed to authorize the Board of
Directors to increase the share capital for the benefit of a
category of beneficiaries as part of an employee shareholding
operation.
The maximum nominal global amount of the capital increases
that may be carried out under these authorizations would be
€1 million through the issuing of new shares or securities
giving access to share capital.
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Text of the Draft Resolutions Proposed by the Board of Directors to the General Meeting of May 22, 2024
The two new authorizations would terminate future use
of and replace the authorizations granted by the General
Meeting of May 24, 2023.
Information relating to the use by the Board of Directors
of the authorizations granted by the General Meeting of
May 24, 2023, can be found in paragraph 5.1.7.2 “Table
Summarizing the Current Delegations Granted by the General
Meeting of Shareholders in Respect of Capital Increases”.
7.1.11 Authorizations for Mergers, Demergers and
Partial Demergers (17th to 22nd resolutions)
The authorization granted to the Board of Directors by the
General Meeting of May 19, 2022, to decide on one or more
mergers by absorption and to increase the share capital
accordingly by issuing shares, will expire at the General
Meeting of May 22, 2024.
You are asked (i) to renew this authorization granted to the
Board of Directors to decide on mergers by absorption of
one or more other companies, (ii) to delegate to the Board
of Directors the authority to decide one or more demergers
and partial demergers, and (iii) to increase the share capital
accordingly, in order to allow the Board of Directors to seize
opportunities related to external growth, consolidation
or internal reorganization operations at any time, and to
optimize the structuring and timing of such operations.
If you decide to approve these authorizations, the Board of
Directors will have the option, for a period of 26 months, to:
— carry out, on one or more occasions, mergers by
absorption, demergers and partial demergers in the
context of transactions in which the Company would be
the absorbing company or the Company receiving the
contributions, as the case may be, and
— carry out capital increases in consideration for these
mergers, demergers and partial demergers, up to a
maximum nominal amount of €10 million. This cap will
be deducted from the overall cap on the nominal amount
of all capital increases that may be carried out under the
14th resolution of the General Meeting of Shareholders of
May 24, 2023, or any subsequent resolution having the
same purpose.
7.2
Text of the Draft Resolutions Proposed
by the Board of Directors to the General
Meeting of May 22, 2024
Ordinary General Meeting
1st resolution
Approval of the parent company annual financial statements
2nd resolution
Approval of the consolidated financial statements
The General Meeting, after the reading of the management
report of the Board of Directors and the report of the
Statutory Auditors, in addition to the explanations made
orally, hereby approves the management report of the
Board of Directors and the parent company annual financial
statements for the year ended December 31, 2023, as they
have been presented.
approves
consequently
any
The General Meeting
transactions disclosed
in these financial statements or
summarized in these reports and, in particular, in accordance
with the provisions of Article 223 quater of the French
Tax Code, the aggregate amount of the expenses and
charges referred to in Article 39.4 of the said Code that are
non‑deductible from taxable income, totaling €2,824,646
and resulting in corporate tax of €729,606.
The General Meeting, after the reading of the report of the
Board of Directors with respect to management of Dassault
Systèmes included in the management report and the
report by the Statutory Auditors related to the consolidated
financial statements, in addition to the explanations made
orally, hereby approves in all respects the management
report of the Board of Directors and the consolidated
financial statements for the year ended December 31, 2023,
as they have been presented.
The General Meeting consequently approves any transactions
disclosed by such consolidated financial statements or
summarized in such reports.
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7
3rd resolution
Allocation of profit
The General Meeting, on the recommendation of the Board of Directors, hereby resolves to allocate the profit of the year
amounting to €861,164,184.28(1) as follows:
– to the legal reserve
– to a special reserve account (2)
– for distribution to the 1,337,916,433 shares forming the share capital at 12/31/2023
of a dividend of (€0.23 x 1,337,916,433)(3)
– to retained earnings
which, increased by the retained earnings from previous years of €3,451,199,096.21,
brings the amount of retained earnings to
€28,767.25
€0
€307,720,779.59
€553,414,637.44
€4,004,613,733.65
In compliance with Article 238 bis AB, paragraph 5 of the French General Tax Code.
(1) This profit, increased by the retained earnings from previous years of €3,451,199,096.21, results in a distributable profit of €4,312,363,280.49.
(2)
(3) The aggregate amount of the dividend will be adjusted according to the change in the number of new shares created between January 1, 2024, and the date of this
General Meeting, mainly as a result of the exercise of share subscription options, it being specified that the maximum number of shares that may derive from the exercise
of options is 19,550,781, representing a maximum additional dividend of €4,496,679.63.
Shares will be traded ex‑dividend on May 27, 2024 and the
dividend will be paid on May 29, 2024.
The amount thus distributed to individual shareholders
resident in France for tax purposes will be, where applicable:
On the date of payment, the amount of the dividend
corresponding to
(i) the treasury shares of Dassault
Systèmes SE and (ii) the Dassault Systèmes’ shares held by
SW Securities LLC, a company which is controlled by the
Dassault Systèmes SE Group, will be allocated to “retained
earnings”, in accordance with the provisions of Article L. 225‑
210 of the French Commercial Code and the contractual
provisions in force between SW Securities LLC and Dassault
Systèmes SE.
In addition, prior to distribution of the dividend, the Board
of Directors, or if so authorized, the Chief Executive Officer
will determine the number of additional shares issued as a
result of the exercise of share subscription options between
January 1, 2024 and the date of this General Meeting. The
amount required for payment of dividends for shares issued
during this period will be taken from “retained earnings”.
— either subject to a flat‑rate withholding tax of 30%
(12.8% non‑discharging flat‑rate withholding tax paid
as income tax and 17.2% social security withholding)
(Article 117 quater of the French Tax Code);
into account
— or, if an individual option is expressly and irrevocably
exercised each year across the board for all income
in determining
from securities, taken
shareholders’ total income subject to the progressive
rate of income tax for the year in which it is received
(Article 200 A of the French Tax Code), after application
of an uncapped deduction of 40% (Article 158, 3, 2° of
the French Tax Code). Dividends taxed at the progressive
rate of income tax are also subject to social security
contributions at a rate of 17.2%.
Pursuant to Article 243 bis of the French Tax Code, it is noted
that dividends per share paid over the last three years have
been as follows:
Year
2022
2021
2020
Dividend (1) (in euros)
Number of shares eligible for dividends
0.21
1,315,586,120
0.17
1,314,896,795
0.11 (2)
1,313,041,750 (3)
(1) Dividend 100% eligible for the 40% deduction provided for in Article 158, 3, 2° of the French Tax Code.
(2) After adjustment in order to reflect the five‑for‑one stock split of the nominal value of Dassault Systèmes’ shares in effect as of July 7, 2021.
(3) The number of shares indicated take into account the nominal value of Dassault Systèmes shares being split by five, in effect as of July 7, 2021.
7
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Text of the Draft Resolutions Proposed by the Board of Directors to the General Meeting of May 22, 2024
4th resolution
Related‑party agreements
The General Meeting, having reviewed the special report
of the Statutory Auditors on the agreements governed by
Articles L. 225‑38 et seq. of the French Commercial Code,
acknowledges the report, which does not include any new
agreements.
5th resolution
Appointment of PricewaterhouseCoopers Audit as Auditor
in charge of Certifying Sustainability Reporting
The General Meeting, having reviewed the report of the
Board of Directors, resolves, in accordance with Articles
L. 821‑40 et seq. of the French Commercial Code, to appoint
PricewaterhouseCoopers Audit as Auditor
in charge of
certifying sustainability reporting.
Notwithstanding the provisions of Article L. 821‑44 of the
French Commercial Code, and pursuant to Article 38 of
Ordinance No. 2023‑1142 of December 6, 2023, regarding
the publication and certification of sustainability reporting
and the environmental, social and corporate governance
obligations of commercial companies, the term of this
assignment shall be three fiscal years, expiring at the close
of the General Meeting of Shareholders called to approve the
financial statements for the 2026 fiscal year.
6th resolution
Compensation policy for corporate officers (mandataires
sociaux)
The General Meeting, having reviewed the report drawn up
in accordance with Articles L. 225‑37 and L. 22‑10‑8 of the
French Commercial Code, approves the compensation policy
for corporate officers (mandataires sociaux) set by the Board
of Directors and contained in paragraph 5.1.3 “Compensation
Policy
(Mandataires Sociaux)”
of Chapter 5 “Corporate Governance” of the Universal
registration document for 2023.
for Corporate Officers
7th resolution
Compensation elements paid or granted in 2023 to Mr.
Charles Edelstenne, Chairman of the Board of Directors until
January 8, 2023
The General Meeting, having reviewed the report drawn up
in accordance with Articles L. 22‑10‑9 and L. 22‑10‑34 of
the French Commercial Code, approves the compensation
elements paid in 2023 or granted with respect to 2023 to Mr.
Charles Edelstenne, Chairman of the Board of Directors until
January 8, 2023, as indicated in paragraph 5.1.4 “Summary
of the Compensation and Benefits due to Corporate Officers
(Mandataires Sociaux)” of Chapter 5 “Corporate Governance”
of the Universal registration document for 2023.
8th resolution
Compensation elements paid or granted in 2023 to Mr.
Bernard Charlès, Vice chairman of the Board of Directors
and Chief Executive Officer until January 8, 2023, then
Chairman & Chief Executive Officer until December 31, 2023
The General Meeting, having reviewed the report drawn up
in accordance with Articles L. 22‑10‑9 and L. 22‑10‑34 of
the French Commercial Code, approves the compensation
elements paid in 2023 or granted with respect to 2023 to Mr.
Bernard Charlès, Vice chairman of the Board of Directors and
Chief Executive Officer until January 8, 2023, then Chairman
& Chief Executive Officer, as indicated in paragraph 5.1.4
“Summary of the Compensation and Benefits due to
Corporate Officers (Mandataires Sociaux)” of Chapter 5
“Corporate Governance” of
registration
document for 2023.
the Universal
9th resolution
Compensation elements paid or granted in 2023 to Mr.
Pascal Daloz, Deputy CEO & Chief Operating Officer from
January 9 to December 31, 2023
The General Meeting, having reviewed the report drawn
up in accordance with Articles L. 225‑37 and L. 22‑10‑9 of
the French Commercial Code, approves the compensation
elements paid in 2023 or granted with respect to 2023 to
Mr. Pascal Daloz, Deputy CEO & Chief Operating Officer, as
indicated in paragraph 5.1.4 “Summary of the Compensation
and Benefits due to Corporate Officers
(Mandataires
Sociaux)” of Chapter 5 “Corporate Governance” of the
Universal registration document for 2023.
10th resolution
Approval of the information contained in the corporate
governance report and relating to the compensation
of corporate officers (mandataires sociaux) (Article
L. 22‑10‑9 of the French Commercial Code)
The General Meeting, having reviewed the report drawn up
in accordance with Articles L. 22‑10‑9 and L. 22‑10‑34 of
the French Commercial Code, approves the information
contained in the corporate governance report regarding
the compensation of corporate officers
(mandataires
sociaux) mentioned in Article L. 22‑10‑9, I of the French
Commercial Code and contained
in paragraphs 5.1.3.2
“Compensation Policy Applicable to the Chief Executive
Officer”, 5.1.4 “Summary of the Compensation and Benefits
due to Corporate Officers (Mandataires Sociaux)” and 5.1.5
“Interests of Executive Management and Employees in
the Share Capital of Dassault Systèmes SE” of Chapter 5
“Corporate Governance” of
registration
document for 2023.
the Universal
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7
11th resolution
Nomination of a new director
The General Meeting, having reviewed the report of the
Board of Directors, decides to appoint Groupe Industriel
Marcel Dassault SAS, represented by Ms. Marie‑Hélène
Habert‑Dassault, as director of the Company for a four‑year
term. This term of office will expire at the close of the
General Meeting called to approve the financial statements
for the year ending December 31, 2027.
12th resolution
Reappointment of Ms. Laurence Daures
The General Meeting, having reviewed the report of the
Board of Directors, notes that Ms. Laurence Daures’s term
of office as director expires at the close of this General
Meeting and reappoints her for a four‑year term. This term
of office will expire at the close of the General Meeting called
to approve the financial statements for the year ending
December 31, 2027.
13th resolution
Authorization to repurchase Dassault Systèmes’ shares
The General Meeting, having reviewed the report of the
Board of Directors, authorizes the Board of Directors to
purchase a maximum of 25 million Dassault Systèmes shares,
in accordance with the terms and conditions stipulated
in Articles L. 22‑10‑62 et seq. of the French Commercial
Code, Articles 241‑1 et seq. of the French Financial Markets
Authority
(EU)
no. 596/2014 of April 16, 2014 on market abuse (“MAR
Regulation”), and Commission Delegated Regulation (EU)
no. 2016/1052 of March 8, 2016 supplementing the MAR
Regulation.
(AMF) General Regulation, Regulation
This authorization may be used by the Board of Directors for
the following purposes:
1) to cancel shares for the purpose of increasing the
profitability of shareholders’ equity and earnings per
share, subject to approval by the Extraordinary General
Meeting of the resolution permitting shares to be
canceled;
2) to meet obligations related to stock option allocations
or other allocations of shares to employees or Corporate
Officers (mandataires sociaux) of Dassault Systèmes SE
or of an affiliated company;
3) to provide shares upon exercise of rights attached to
marketable securities giving access to the share capital of
Dassault Systèmes SE;
4) to maintain an active market or provide liquidity for
Dassault Systèmes shares through the intermediary of
an investment services provider by means of a liquidity
contract complying with the French Financial Markets
Authority (AMF)’s accepted market practice;
5) to implement any stock‑exchange market practice which
may be accepted by law or by the French Financial
Markets Authority (AMF);
6) to deliver shares in the context of external growth
transactions by Dassault Systèmes SE or an affiliated
company, in particular through mergers, demergers,
partial demergers or contributions in kind.
The acquisition, sale, transfer or exchange of such shares
may be realized by any means allowed on the market
(whether or not the market is regulated), multilateral trade
facilities (MTF) or through a systematic internalizer or
over‑the counter, in particular acquisitions of blocks.
The acquisition, sale, transfer or exchange of such shares
may be completed at any time in accordance with the
applicable legal provisions and regulations except during a
public offering period.
The maximum amount of funds dedicated to the repurchase
of Company shares may not exceed €1 billion, this condition
being cumulative with the cap of 25 million Dassault
Systèmes shares.
This authorization can be used by the Board of Directors for
all the treasury shares held by Dassault Systèmes.
This authorization will be valid commencing on the date of
this General Meeting until the Annual Ordinary General
Meeting approving the financial statements for the year
ending December 31, 2024. The General Meeting hereby
grants any and all powers to the Board of Directors with
option of delegation when legally authorized, to place any
stock orders or orders outside the market, enter into any
agreements, prepare any documents including information
documents, determine terms and conditions of Company
transactions on the market, as well as terms and conditions
for purchase and sale of shares, file any declarations,
including those required by the French Financial Markets
Authority (AMF), accomplish any formalities, and more
generally, carry out any necessary measures to complete
such transactions.
The General Meeting also grants any and all powers to
the Board of Directors, in case that the Law or the French
Financial Markets Authority (AMF) appears to extend or to
complete the authorized objectives concerning the share
buyback program, in order to inform the public, pursuant to
applicable regulations and laws, about the potential changes
of the program concerning the modified objectives.
In accordance with the provisions of Articles L. 225‑211 and
R. 225‑160 of the French Commercial Code, the Company or
the intermediary in charge of securities administration for
the Company shall keep registers which record purchases
and sales of shares pursuant to this program.
This authorization replaces and supersedes the previous
share buyback program authorized by the Combined
General Meeting of Shareholders of May 24, 2023, in its
12th resolution.
7
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General Meeting
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Extraordinary General Meeting
14th resolution
Authorization granted to the Board of Directors to reduce
the share capital by cancellation of previously repurchased
shares in the framework of the share buyback program
The General Meeting, having reviewed the report of the
Board of Directors and the special report of the Statutory
Auditors, hereby authorizes the Board of Directors, pursuant
to the provisions of Article L. 22‑10‑62 of the French
Commercial Code, to:
— reduce the share capital by canceling, in one or more
transactions, some or all of the shares repurchased by
the Company under its share buyback program, subject
to a limit of 5% of the share capital in each 24‑month
period;
— deduct the difference between the repurchase value
of the canceled shares and their nominal value from
available premiums and reserves.
The General Meeting hereby gives, more generally, any
and all powers to the Board of Directors to set the terms
and conditions of such share capital reduction(s), record the
completion of the share capital reduction(s) made pursuant
to the cancellation transactions authorized by this resolution,
amend the by‑laws of the Company as may be necessary, file
any declaration with the French Financial Markets Authority
(AMF) or other institutions, accomplish any formalities
and more generally take any necessary measures for the
purposes of completing this transaction.
This authorization is granted to the Board of Directors for
a period expiring at the end of the General Meeting called
to approve the financial statements for the year ending
December 31, 2024.
15th resolution
Authorization of the Board of Directors to increase the share
capital for the benefit of members of a corporate savings
plan, without preferential subscription rights
The General Meeting, having reviewed the report of the
Board of Directors and the special report of the Statutory
Auditors, pursuant to the provisions of Articles L. 3332‑1
et seq. of the French Labor Code and Articles L. 225‑138‑1
and L. 225‑129‑6, first and second paragraphs, of the French
Commercial Code:
2) resolves to cancel the preferential subscription rights of
shareholders to the new shares to be issued or to other
securities giving access to share capital and securities
to which these securities give entitlement under this
resolution for the benefit of the members of the plans
referred to in the previous paragraph and waives the
rights to the shares or other securities that would be
granted through the application of this resolution;
3) resolves that the maximum nominal amount that may be
issued under this delegation will count toward the overall
nominal amount for capital increases of €12 million set
in the 14th resolution of the Ordinary and Extraordinary
General Meeting of May 24, 2023;
4) resolves that the subscription price for the new shares
will be at least 85% of the average listed price of the
Company’s shares on Euronext Paris in the 20 trading
days preceding the day on which subscriptions open.
However,
the General Meeting of Shareholders
expressly authorizes the Board of Directors, if it deems
it appropriate, to reduce or cancel the above‑mentioned
discount, within the legal and regulatory limits, in order
to take account of, inter alia, the legal, accounting, tax
and social security rules applicable locally;
5) resolves that the Board of Directors may also replace all
or part of the discount with the free allocation of shares
or other securities giving access to the Company’s share
capital, whether existing or to be issued, it being specified
that the total benefit resulting from this allocation and, if
applicable, from the discount mentioned above, cannot
exceed the total benefit that members of the savings
plan would have received if this difference had been
15% compared with the average Company share prices
mentioned above;
6) resolves that the Board of Directors may provide for,
pursuant to Article L. 3332‑21 of the French Labor
Code, the free allocation of shares or other securities
giving access to the Company’s share capital to be
issued or already issued under a bonus scheme, provided
that the inclusion of their monetary value, valued at
the subscription price, does not result in the legal or
regulatory limits being exceeded;
7) resolves that the characteristics of the other securities
giving access to the Company’s share capital will be
determined by the Board of Directors according to the
conditions laid down by the regulations;
1) delegates to the Board of Directors its authority to
increase the share capital of the Company, in one or
more transactions, by a maximum nominal amount
of €1 million through the issue of new shares or other
securities giving access to the Company’s share capital
under the conditions prescribed by law, reserved for
members of corporate savings plans of the Company
and/or its affiliated entities within the meaning of Article
L. 225‑180 of the French Commercial Code and Article
L. 3344‑1 of the French Labor Code;
8) resolves that the Board of Directors will have all the
necessary powers, with the option for delegation
or sub‑delegation, in accordance with the legal and
regulatory provisions, within the limits and under the
conditions specified above, to determine all the terms and
conditions of transactions and, in particular, to decide on
the amount to be issued, the issue price and the terms
of each issue, and to define the terms, where applicable,
for the free allocation of shares or other securities giving
access to the share capital, under the authorization given
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7
above, to determine the opening and closing dates for
subscriptions, to set, within the maximum limit of three
years, the period granted to subscribers to pay for their
shares, to determine the date, which may be retroactive,
from which the new shares will be eligible for dividends,
to apply for their admission to listing on the stock market
wherever they are advised to do so, to record the share
capital increase in the amount of shares effectively
subscribed for, to make all necessary arrangements
to carry out the share capital increases, carry out all
formalities arising therefrom and amend the by‑laws
accordingly, and at its sole discretion, and if it deems it
appropriate, to deduct the fees involved in carrying out
the share capital increases from the premiums relating to
these increases as well as the sums necessary to increase
the legal reserve to one tenth of the new share capital
after each increase;
9) resolves that this delegation supersedes all prior
authorizations relating to the capital increase reserved
for the members of the company savings plan and
in particular the delegation granted by the General
Shareholders’ Meeting of May 24, 2023,
its
22nd resolution.
in
The authorization thus granted to the Board of Directors is
valid for twenty‑six months from the date of this General
Meeting.
16th resolution
Delegation of authority granted to the Board of Directors
to increase the share capital for the benefit of a category
of beneficiaries, without preferential subscription rights,
under an employee shareholding plan
The General Meeting, having reviewed the report of the
Board of Directors and the special report of the Statutory
Auditors, pursuant to the provisions of Articles L. 225‑ 129‑
2 and L. 225‑138 of the French Commercial Code:
1) delegates to the Board of Directors its authority to
increase the share capital of the Company, in one or
more transactions, by a maximum nominal amount
of €1 million through the issue of new shares or other
securities giving access to the Company’s share capital,
reserved to the category of beneficiaries as defined
below;
2) resolves that the maximum nominal amount that may
be
issued under the present delegation will count
toward (a) the overall nominal cap for capital increases of
€12 million set in the 14th resolution of the Ordinary and
Extraordinary General Meeting of May 24, 2023, and (b)
the nominal cap set in the 15th resolution of this General
Meeting;
3) resolves to cancel the preferential subscription rights
of the shareholders to the shares to be issued or other
securities giving access to share capital and securities
to which these securities give entitlement to be issued
under this resolution and to reserve the subscription
rights to a category of beneficiaries having the following
characteristics: (i) any credit institution or any entity held
by a credit institution, which participates, at the request
of the Company in the implementation of a structured
offering reserved for employees and corporate officers
(mandataires sociaux) of companies related to the
Company under the conditions set out
in Articles
L. 225‑180 and L. 233‑16 of the French Commercial
Code, and having their registered office outside France;
(ii) and/or employees and corporate officers (mandataires
sociaux) of companies related to the Company under the
conditions set out in Articles L. 225‑180 and L. 233‑16 of
the French Commercial Code, and having their registered
office outside France; (iii) and/or collective investment
vehicles (OPCVM) or any other employee shareholding
vehicle invested in the Company’s securities, irrespective
of whether it is a legal entity, the unitholders of which
will be the persons referred to in (ii) above;
4) resolves that the subscription price for the new shares
will be at least 85% of the average listed price of the
Company’s share on Euronext Paris on the 20 trading
days preceding the day of the corporate decision setting
the opening day of the subscription period carried
out on the basis of the 15th resolution of this General
Meeting. However, the General Meeting of Shareholders
expressly authorizes the Board of Directors, if it deems
it appropriate, to reduce or cancel the above‑mentioned
discount, within the legal and regulatory limits, in order
to take account of, inter alia, the legal, accounting, tax
and social security rules applicable locally;
5) resolves that the characteristics of the other securities
giving access to the Company’s share capital will be
determined by the Board of Directors according to the
conditions laid down by the regulations;
6) resolves that the Board of Directors will have all the
necessary powers, with the option for delegation
or sub‑delegation, in accordance with the legal and
regulatory provisions, within the limits and under the
conditions specified above, to determine all the terms
and conditions of transactions and, in particular, to
decide on the amount to be issued, the issue price and
the terms of each issue, set the list of beneficiaries of the
cancellation of the preferential subscription rights within
the categories defined above and the number of shares
to be subscribed by each of them, to determine the
opening and closing dates for subscriptions, to determine
the date, which may be retroactive, from which the new
shares will be eligible for dividends, to apply for their
admission to listing on the stock market wherever they
are advised to do so, to record the share capital increase in
the amount of shares effectively subscribed for, to make
all necessary arrangements to carry out the share capital
increases, carry out all formalities arising therefrom and
amend the by‑laws accordingly, and at its sole discretion,
and if it deems it appropriate, to deduct the fees involved
in carrying out the share capital increases from the
premiums relating to these increases as well as the sums
necessary to increase the legal reserve to one tenth of
the new share capital after each increase;
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Text of the Draft Resolutions Proposed by the Board of Directors to the General Meeting of May 22, 2024
7) resolves that this delegation cancels the delegation
of the same nature granted by the Combined General
Shareholders’ Meeting of May 24, 2023
its
23rd resolution.
in
The delegation thus granted to the Board of Directors is valid
for eighteen months from the date of this General Meeting.
17th resolution
Delegation of authority granted to the Board of Directors to
decide on one or more mergers by absorption
The General Meeting, after review of the report of the Board
of Directors:
1) delegates to the Board of Directors, pursuant to the
provisions of Article L. 236‑9 II of the French Commercial
Code, its authority to decide on one or more occasions, at
its sole discretion, on one or more mergers by absorption
in the context of transactions in which the Company is
the absorbing company;
2) duly notes as needed that, in accordance with Article
L. 236‑9 II, paragraph 4, one or more shareholders of the
Company representing at least 5% of the share capital
may petition a court of law, within the time limit set by
applicable regulations, for the appointment of an officer
to convene the Company’s General Meeting for the
purposes of voting to approve the merger or proposed
merger;
3) resolves that the Board of Directors may not, unless
approved by the General Meeting, use this authorization
as from the submission of a tender offer on the
Company’s shares by a third party and until the end of
the tender offer period;
4) resolves that this delegation cancels the delegation
of the same nature granted by the Combined General
its
Shareholders’ Meeting of May 19, 2022
19th resolution.
in
The authorization thus granted to the Board of Directors is
valid for twenty‑six months from the date of this General
Meeting.
18th resolution
Delegation of authority granted to the Board of Directors
to increase the share capital by issuing shares, in the event
that the Board of Directors makes use of its delegation of
authority to decide on one or more mergers by absorption
The General Meeting, after review of the report of the Board
of Directors:
1) delegates to the Board of Directors, pursuant to the
provisions of Articles L. 236‑9 II and L. 225‑129 to
L. 225‑129‑5 of the French Commercial Code,
its
authority to decide to increase the share capital by
issuing shares in the event of one or more mergers by
absorption decided by the Board of Directors pursuant
to the 17th resolution of this General Meeting requiring a
capital increase;
2) resolves that the Board of Directors can delegate to the
Chief Executive Officer, or in agreement with the latter,
to one or several Deputy CEOs, in accordance with the
applicable law, all the powers required to decide upon
capital increases;
3) resolves that the maximum nominal amount of the
capital increases that may be performed immediately
or in the future under the present authorization cannot
exceed €10 million, it being specified that this cap is
fixed not taking into account the nominal amount of the
shares to be issued to preserve the rights of holders of
marketable securities or other rights giving access to
the Company’s share capital, in accordance with the
applicable legal and regulatory provisions and, where
applicable, the contractual provisions allowing other
adjustments;
4) resolves that the nominal amount that may be issued
under this resolution will count toward the overall
maximum nominal amount for capital
increases of
€12 million set under the 14th resolution of the General
Meeting of May 24, 2023 or any resolution with the same
purpose that may succeed it during this authorization’s
term of validity;
5) resolves that any
issue of preference shares and
marketable securities giving access to preference shares
is excluded;
6) resolves that the Board of Directors may not, unless
approved by the General Meeting, use this authorization
as from the submission of a tender offer on the
Company’s shares by a third party and until the end of
the tender offer period;
7) resolves that this delegation cancels the delegation
of the same nature granted by the Combined General
Shareholders’ Meeting of May 19, 2022
its
20th resolution.
in
The authorization thus granted to the Board of Directors is
valid for twenty‑six months from the date of this General
Meeting.
19th resolution
Delegation of authority granted to the Board of Directors to
decide one or more demergers
The General Meeting, after review of the report of the Board
of Directors:
1) delegates to the Board of Directors, in application of the
provisions of Articles L. 236‑9, II and L. 236‑16 of the
French Commercial Code, its authority to decide, on one
or more occasions, at its sole discretion, on one or more
demergers in the context of transactions in which the
Company is the beneficiary;
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7
2) notes, as necessary, that, in accordance with Article
L. 236‑9, II, paragraph 4 of the French Commercial
Code, one or more shareholders of the Company holding
at least 5% of the share capital may bring legal action,
within the time limit set by applicable regulations, for
the appointment of a proxy for the purpose of convening
the Company’s shareholders’ meeting to decide on the
approval of the demerger or the demerger plan;
3) resolves that the Board of Directors may not, unless
approved by the General Meeting, use this authorization
as from the submission of a tender offer on the
Company’s shares by a third party and until the end of
the tender offer period.
The authorization thus granted to the Board of Directors is
valid for twenty‑six months from the date of this General
Meeting.
20th resolution
Delegation of authority granted to the Board of Directors
to increase the share capital by issuing shares, in the event
that the Board of Directors makes use of the delegation of
authority granted to the Board of Directors to decide on one
or more demergers
The General Meeting, after review of the report of the Board
of Directors:
1) delegates to the Board of Directors, in application of the
provisions of Articles L. 236‑9, II and from L.225‑129
to L.225‑129‑5 of the French Commercial Code, its
authority to decide to increase the share capital by
issuance of shares in case of one or more demergers
decided by the Board of Directors pursuant to the 19th
resolution of this General Meeting requiring a capital
increase;
2) resolves that the Board of Directors can delegate to
the Chief Executive Officer, or in agreement with the
latter, to one or several Deputy Chief Executive Officers,
in accordance with the applicable law, all the powers
required to decide upon capital increases;
3) resolves that the maximum nominal amount of the
capital increases that may be performed immediately
or in the future under the present authorization cannot
exceed €10 million, it being specified that this overall cap
is fixed not taking into account the nominal amount of the
shares to be issued to preserve the rights of holders of
securities or other rights giving access to the Company’s
share capital, in accordance with the applicable legal
and regulatory provisions and, where applicable, the
contractual provisions allowing other adjustments;
4) resolves that the nominal amount that may be issued
under the present resolution will count towards the
overall maximum nominal amount for capital increases
of €12 million set under the 14th resolution of the
General Meeting of May 24, 2023 or any resolution
with the same purpose that may succeed it during this
authorization’s term of validity;
5) resolves that any
issue of preference shares and
securities giving access to preference shares is excluded;
6) resolves that the Board of Directors may not, unless
approved by the General Meeting, use this authorization
as from the submission of a tender offer on the
Company’s shares by a third party and until the end of
the tender offer period.
The authorization thus granted to the Board of Directors is
valid for twenty‑six months from the date of this General
Meeting.
21st resolution
Delegation of authority granted to the Board of Directors to
decide one or more partial demergers
The General Meeting, after review of the report of the Board
of Directors:
1) delegates to the Board of Directors, in application of
the provisions of Articles L. 236‑9, II, L. 236‑22 and
L. 236‑16 of the French Commercial Code, its authority
to decide, on one or more occasions, at its sole discretion,
on one or more partial demergers in the context of
transactions in which the Company is the beneficiary;
2) notes, as necessary, that, in accordance with Article
L. 236‑9, II, paragraph 4 of the French Commercial
Code, one or more shareholders of the Company holding
at least 5% of the share capital may bring legal action,
within the time limit set by applicable regulations, for
the appointment of a proxy for the purpose of convening
the Company’s shareholders’ meeting to decide on the
approval of the partial demerger or the partial demerger
plan;
3) resolves that the Board of Directors may not, unless
approved by the General Meeting, use this authorization
as from the submission of a tender offer on the
Company’s shares by a third party and until the end of
the tender offer period.
The authorization thus granted to the Board of Directors is
valid for twenty‑six months from the date of this General
Meeting.
7
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2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES 7
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22nd resolution
Delegation of authority granted to the Board of Directors
to increase the share capital by issuing shares, in the event
that the Board of Directors makes use of the delegation of
authority granted to the Board of Directors to decide on one
or more partial demergers
exceed €10 million, it being specified that this overall cap
is fixed not taking into account the nominal amount of the
shares to be issued to preserve the rights of holders of
securities or other rights giving access to the Company’s
share capital, in accordance with the applicable legal
and regulatory provisions and, where applicable, the
contractual provisions allowing other adjustments;
The General Meeting, after review of the report of the Board
of Directors:
1) delegates to the Board of Directors, in application of the
provisions of Articles L. 236‑9, II and from L.225‑129
to L.225‑129‑5 of the French Commercial Code, its
authority to decide to increase the share capital by
issuance of shares in case of one or more partial
demergers decided by the Board of Directors pursuant
to the 21st resolution of this General Meeting requiring a
capital increase;
2) resolves that the Board of Directors can delegate to
the Chief Executive Officer, or in agreement with the
latter, to one or several Deputy Chief Executive Officers,
in accordance with the applicable law, all the powers
required to decide upon capital increases;
3) resolves that the maximum nominal amount of the
capital increases that may be performed immediately
or in the future under the present authorization cannot
4) resolves that the nominal amount that may be issued
under the present resolution will count towards the
overall maximum nominal amount for capital increases
of €12 million set under the 14th resolution of the
General Meeting of May 24, 2023 or any resolution
with the same purpose that may succeed it during this
authorization’s term of validity;
5) resolves that any
issue of preference shares and
securities giving access to preference shares is excluded;
6) resolves that the Board of Directors may not, unless
approved by the General Meeting, use this authorization
as from the submission of a tender offer on the
Company’s shares by a third party and until the end of
the tender offer period.
The authorization thus granted to the Board of Directors is
valid for twenty‑six months from the date of this General
Meeting.
Ordinary and Extraordinary General Meeting
23rd resolution
Powers for formalities
The General Meeting hereby grants any and all powers to the bearer of an original, a copy or an excerpt of the minutes of
these deliberations for the purpose of carrying out any legal formalities for publication.
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DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT 7
CROSS‑REFERENCE
TABLES
Cross‑reference table with the annual financial report
The cross‑reference table below makes it possible to identify
the information in this Universal registration document
making up the annual financial report under 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.
Annual financial report
1.
2.
3.
4.
5.
6.
Dassault Systèmes SE’s annual financial statements
Group’s consolidated financial statements
Management report
Statement of the person responsible for the annual financial report
Statutory auditors’ report on the annual financial statements
Statutory auditors’ report on the consolidated financial statements
Universal
registration
document
Paragraphs
4.2.1
4.1.1
See cross‑reference
table with the
management
report below
‑
4.2.3
4.1.2
375
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Cross‑reference table with the management report
The cross‑reference table below makes it possible to identify
the information in this Universal registration document
making up the annual management report to be drawn up by
the Board of Directors of Dassault Systèmes SE, as defined
by Articles L. 225‑100 et seq. of the French Commercial
Code.
Management report
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
Business trend analysis
Analysis of results
Analysis of financial position
Description of main risks and uncertainties
Information on the use of financial instruments
Exposure to price, credit, liquidity and cash flow risks
Information referred to in Article L. 225‑211 of the French Commercial Code: information
concerning share buybacks
Position in fiscal year 2023
Foreseeable changes in situation
Important events that occurred since the end of fiscal year 2023
Research and development activities
Existing branches
Activities and results of Dassault Systèmes SE, parent company
Activities of Dassault Systèmes SE’s subsidiaries during fiscal year 2023
Key financial and non‑financial performance indicators
Financial performance table for Dassault Systèmes SE for the past five fiscal years
Employee share capital participation on the last day of the fiscal year
Non‑financial performance statement
Acquisition or significant control in Group companies with their registered office in France
Breakdown of transactions performed by senior executives on the Company’s securities
Information on supplier and customer payment periods
Amount of business‑to‑business loans granted and auditor statement
Corporate governance report
Amount of dividends distributed in the past three fiscal years
Distribution and evolution of shareholders (including treasury shares)
Financial risks related to the impact of climate change and measures taken to reduce them by
implementing a low‑carbon strategy
Main characteristics of internal control and risk management procedures
Vigilance Plan
Injunctions or financial penalties for anti‑competitive practices
Universal
registration
document
Paragraphs
3.1
3.1
3.1
1.9
4.1.1 – Notes 2, 20
1.9.2
6.2.4
3.1, 4.1.1, 4.2.1
3.2
None
1.5
6.1.1.6
1.4, 1.6.1, 4.2
1.4, 1.6.2
1.7, 1.8, 2.7
4.2.2
6.3.1
1.8, 2
4.2.1 – Note 24
4.1.1 – Note 27
5.3
4.2.1 – Notes 13, 19
N/A
5.1
7.1.1
6.3.1
2
5.2
2.6
N/A
376
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Cross‑reference table with the headings of Annex 1 of Commission Delegated Regulation (EU) 2019/980
it possible to
The cross‑reference table below makes
identify the
in this Universal registration
information
document mentioned by the different headings of Annex
1 of Commission Delegated Regulation (EU) 2019/980 of the
European Commission of March 14, 2019.
Headings of Annex 1 of the European Regulation
1.
1.1
1.2
1.3
1.4
1.5
2.
3.
4.
4.1
4.2
4.3
4.4
5.
5.1
5.2
5.3
5.4
5.5
5.6
5.7
6.
6.1
6.2
7.
8.
9.
10.
11.
12.
PERSONS RESPONSIBLE, THIRD‑PARTY INFORMATION, EXPERTS’ REPORTS AND COMPETENT
AUTHORITY APPROVAL
Name and function of the persons responsible
Declaration by those responsible
Persons acting as experts
Statement concerning third‑party information
Statement concerning the approval of the Universal registration document by the competent
authority
STATUTORY AUDITORS
RISK FACTORS
INFORMATION ABOUT THE ISSUER
The legal and commercial name of the issuer
The place of registration of the issuer, its registration number and legal entity identifier (LEI)
The date of incorporation and term
The domicile and legal form of the issuer, the legislation under which the issuer operates, its
country of incorporation, the address, telephone number of its registered office and website of
the issuer
BUSINESS OVERVIEW
Principal activities
Principal markets
The important events in the development of the issuer’s business
Strategy and objectives
Extent to which the issuer is dependent, on patents or licenses, industrial, commercial or financial
contracts or new manufacturing processes
The basis for any statements made by the issuer regarding its competitive position
Investments
ORGANIZATIONAL STRUCTURE
Description of the Group and the issuer’s position within the Company
List of the issuer’s significant subsidiaries
OPERATING AND FINANCIAL REVIEW
CAPITAL RESOURCES
REGULATORY ENVIRONMENT
TREND INFORMATION
PROFIT FORECASTS OR ESTIMATES
ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES AND SENIOR MANAGEMENT
12.1
12.2
13.
Information regarding the members of administrative and management bodies
Conflicts of interest in administrative, management and supervisory bodies and senior
management
REMUNERATION AND BENEFITS
Universal
registration
document
Paragraphs
Not applicable
Not applicable
5.4
1.9
6.1.1
6.1.1.2
6.1.1.3
6.1.1
1.4.1
1.4.2
3.1.3
None
1.4.1
1.9.1.5
1.4.1, 1.5
1.5.4
1.6.1
1.6.2
3.1
3.1.6
1.9.1.3
1.9.1.1
3.2
5.1.1, 5.1.2
5.5
13.1 Amount of remuneration paid and benefits in kind
13.2
The total amounts set aside or accrued to provide for pension, retirement or similar benefits
5.1.4
5.1.4 – Table 11
377
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
Universal
registration
document
Paragraphs
5.1
5.1.1.1
5.5
5.1.1.3
5.1, 5.1.6
5.1.6
2.3
5.1.1, 5.1.5
6.3.1
5.1.5
6.3
6.3.1
6.1.2.3
6.3.2
6.3.3
4.1.1 – NOTE 25,
4.2.4, 7.1.5
4.1, 4.2
3.3
4.1.2, 4.2.3, 4.2.4
Not applicable
7.1
4.3
None
6.2, 6.3
4.1 – Note 22
4.2 – Note 15
6.1.2
1.4.3
6.1.1.7
Headings of Annex 1 of the European Regulation
14.
BOARD PRACTICES
Service contracts with the issuer
Information about committees
Statement as to whether or not the issuer complies with the corporate governance regime
14.1 Date of expiration of the current term of office
14.2
14.3
14.4
14.5 Potential material impacts on the corporate governance
15.
EMPLOYEES
15.1 Number of employees
15.2
Shareholdings and stock options
15.3 Arrangements for involving the employees in the capital of the issuer
16. MAJOR SHAREHOLDERS
Shareholders holding more than 5% of the share capital or voting rights
Existence of different voting rights
Control of the issuer
16.1
16.2
16.3
16.4 Any arrangements, known to the issuer, the operation of which may at a subsequent date result
17.
18.
in a change in control of the issuer
RELATED PARTY TRANSACTIONS
FINANCIAL INFORMATION CONCERNING THE ISSUER’S ASSETS AND LIABILITIES, FINANCIAL
POSITION AND PROFITS AND LOSSES
Interim and other financial information
18.1 Historical financial information
18.2
18.3 Auditing of historical annual financial information
18.4 Pro forma financial information
18.5 Dividend policy
18.6
18.7
19.
Legal and arbitration proceedings
Significant change in the issuer’s financial position
ADDITIONAL INFORMATION
19.1
Share capital
19.2 Memorandum and Articles of Association
20. MATERIAL CONTRACTS
21.
DOCUMENTS AVAILABLE
378
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
SASB Cross‑Reference Table
(SASB) Foundation was
The Sustainability Accounting Standards
Board
founded
independent
in 2011 as a not‑for‑profit,
standards‑setting
with
to establish and maintain
the mission
industry‑specific standards
in
that assist companies
disclosing financially material, decision‑useful sustainability
information to investors.
organization,
The SASB Foundation operates in a governance structure
similar to the structure adopted by other internationally
recognized bodies that set standards for disclosure to
including the Financial Accounting Standards
investors,
Board (FASB) and the International Accounting Standards
SASB Dimensions
Human Capital
Paragraphs
Board (IASB). This structure includes a board of directors
(“the Foundation Board”) and a standards‑setting board
(“the Standards Board” or “the SASB”). The Standards
Board develops, issues, and maintains the SASB standards.
The Foundation Board oversees the strategy, finances and
operations of the entire organization, and appoints the
members of the Standards Board.
The cross‑reference table below identifies the information
included in this report and related to the sustainable
development topics included in the materiality map defined
by the Sustainability Accounting Standards Board (SASB) for
Software & IT Services industry.
Employee engagement,
diversity & inclusion
2.3.4 Rewarding and Retaining Talents
2.3.5 Promoting Diversity and Inclusion
Social Capital
Customer privacy
Data security
Environment
Energy management
Leadership & Governance
Competitive behavior
Systemic risk management
2.4.1 Secure Data and Systems
2.4.2 Protecting Personal Data
2.4.1 Secure Data and Systems
2.4.2 Protecting Personal Data
2.5.2 Climate
2.5.4 Biodiversity and Ecosystems
2.5.5 Circular Economy and Resource Use
2.6 Business Ethics and Vigilance Plan
1.9 Risk factors
2.5.2 Climate
2.5.3 Water and Marine Resources
2.5.5 Circular Economy and Resource Use
5.2 Internal Control Procedures and Risk Management
379
2023 UNIVERSAL REGISTRATION DOCUMENT DASSAULT SYSTÈMES
United Nations’ Global Compact Communication On Progress (COP)
The United Nations Global Compact is a
non‑binding United Nations pact to encourage
businesses and companies worldwide to adopt
sustainable and socially responsible policies,
and to report on their implementation.
Corporate sustainability starts with a company’s value
system and a principles‑based approach to doing business.
This means operating in ways that, at a minimum, meet
fundamental responsibilities in the areas of Human rights,
labor rights, environment and anti‑corruption. Responsible
businesses enact the same values and principles wherever
they operate, and know that good practices in one area
do not offset harm in another. By incorporating the ten
Principles the UN Global Compact into strategies, policies
and procedures, and establishing a culture of integrity,
companies are not only upholding their basic responsibilities
to people and planet, but also setting the stage for long‑term
success.
Global Compact
Principles Active level
Human Rights
Description
Principle 1
Principle 2
Labor
Principle 3
Principle 4
Principle 5
Principle 6
Environment
Principle 7
Businesses should support and respect the protection of internationally proclaimed
Human rights; and
Make sure that they are not complicit in Human rights abuses.
Businesses should uphold the freedom of association and the effective recognition of
the right to collective bargaining;
The elimination of all forms of forced and compulsory labor;
The effective abolition of child labor; and
The elimination of discrimination in respect of employment and occupation.
Businesses should support a precautionary approach to environmental challenges;
Principle 8
Undertake initiatives to promote greater environmental responsibility; and
Principle 9
Encourage the development and diffusion of environmentally friendly technologies.
Anti‑Corruption
Principle 10
Businesses should work against corruption in all its forms, including extortion and
bribery.
Paragraphs
2.6.1; 2.6.3 ;
2.6.5
2.6.1; 2.6.3 ;
2.6.5
2.3.4; 2.6.1
2.6.1; 2.6.3
2.6.1; 2.6.3
2.3.5; 2.6.1
2.2; 2.5;
2.7.2
2.4.3; 2.4.4;
2.5.1; 2.5.2;
2.5.5
2.4.2; 2.4.3;
2.5.2
2.6.1; 2.6.2
380
DASSAULT SYSTÈMES 2023 UNIVERSAL REGISTRATION DOCUMENT
Additional information
Dassault Systèmes
Headquarters
10, rue Marcel Dassault – CS 40501
78140 Vélizy-Villacoublay Cedex,
France
Tel.: +33 (0)1 6162 6162
North America
175 Wyman Street,
Waltham, MA 02451, United States
Tel.: +1 781 810 3000
Central Europe
Meitnerstrasse 8
70563 Stuttgart, Germany
Tel.: +49 711 273000
Northern Europe
The Woods, 1st Floor
Opus 40, Hayward Road,
CV34 5AH Warwick,
United Kingdom
Tel.: +44 (0) 247 685 7400
Latin America
85 Avenue Jornalista Roberto
Marinho
04576-010 São Paulo, Brazil
Tel.: +55 (11) 2348-9900
Southern Europe
Innovazione 3
Via dell’ Innovazione, 3
20126 Milano Bicocca
MI, Italy
Tel.: +39 02 3343061
Western Europe
10, rue Marcel Dassault – CS 40501
78140 Vélizy-Villacoublay Cedex,
France
Tel.: +33 (0)1 6162 6162
China
Foxconn Building, Unit 1701-04, F17
No.1366, Lujiazui Ring Road
200120 Shanghai, China
Tel. +86 21 3856 8000
India
Rajiv Gandhi InfoTech Park Phase 1
Industrial Area, Hinjewadi
5th Floor, Tower A, Plot No. 15/A
411057 Pune, India
Tel.: +91 20 6690 1144
Japan
ThinkPark Tower 20F
2-1-1, Osaki, Shinagawa-ku,
141-6020 Tokyo, Japan
Tel.: +81 3 4321 3500
Korea
ASEM Tower 9F,
06164 Gangnam-gu, Séoul,
South Korea
Tel.: +82 232707800
9 Tampines Grande Level 6
528735 Singapore
Tel.: +65 6511 7988
For more information,
visit www.3ds.com
Investor relations
Tel.: +33 (0)1 61 62 69 24
Fax.: +33 (0)1 70 73 43 59
E-mail: investors@3ds.com
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