BofA Global Industrials Conference March 18, 2026 This presentation includes statements related to the expected future results of the company and are therefore forward-looking statements. Actual results may differ materially from those projections due to a wide range of risks and uncertainties, including those that are listed in our SEC filings. This presentation also contains non-GAAP financial information and reconciliations to GAAP are included in the appendix. All information should be read in conjuncti ...

Governance Transition - Dassault Systemes announced a governance transition with Bernard Charles stepping down as Executive Chairman and Board member for personal reasons [2] - Pascal Daloz has been appointed as both Chairman and CEO, marking a significant leadership change for the company [2] Vision and Strategy - The company aims to lead the industrial AI transformation with its 3D UNIV+RSES initiative, which signifies a long-term commitment to innovating how industries operate [4] - Dassault Systemes emphasizes its foundation on long-term thinking, scientific principles, and building trusted relationships with nearly 400,000 companies globally [3]

Summary of Dassault Systèmes Conference Call Company Overview - **Company**: Dassault Systèmes - **Industry**: Software, specifically focusing on Industrial AI and 3D modeling solutions Key Points and Arguments 1. **Governance Transition**: Bernard Charlès has stepped down as Executive Chairman, and Pascal Daloz has been appointed as both Chairman and CEO, marking a significant governance transition for the company [1][4] 2. **Vision for the Future**: The company aims to lead the Industrial AI transformation through its 3D UNIV+RSES initiative, which is described as a long-term commitment to reinventing how industries innovate and operate in the Generative Economy [2][4] 3. **Focus on Long-term Stability**: The leadership change is positioned as a strategic move for long-term planning rather than short-term gains, emphasizing the importance of consistency and alignment [3][5] 4. **Role of Bernard Charlès**: Despite stepping down, Bernard Charlès will remain engaged as a strategic advisor, focusing on product and technology innovations, similar to Bill Gates' role at Microsoft [16][22] 5. **Management Changes**: Significant changes in management have been made, including the restructuring of the leadership for Centric and Medidata, with new hires from AWS and McKinsey to enhance capabilities and accelerate transformation [23][24] 6. **3D UNIV+RSES Development**: The company plans to introduce approximately 60 new companions and 440 new Generative Experiences this year, aiming to create a critical mass of solutions for targeted industries [25] Additional Important Content 1. **Independence of Governance**: The board's decision to appoint a dual role of Chairman and CEO is strategic, with 50% of directors being independent, ensuring compliance with governance standards [11] 2. **Customer Relationships**: Bernard Charlès will maintain some customer relationships, ensuring continuity in client engagement while the company is structured to operate independently of his involvement [22] 3. **Challenges Ahead**: The company acknowledges potential challenges in AI development as it continues to focus on the 3D UNIV+RSES initiative [21][25] 4. **Commitment to Innovation**: The transition is framed as a commitment to both continuity in core values and acceleration towards new technological advancements, particularly in Generative AI [28]

Core Viewpoint - Dassault Systèmes announces the appointment of Pascal Daloz as both Chairman and Chief Executive Officer following the resignation of Bernard Charlès for personal reasons, ensuring continuity in leadership and governance [2][8]. Leadership Transition - Bernard Charlès has stepped down as Executive Chairman and member of the Board, effective immediately, and has expressed his confidence in Pascal Daloz to lead the company [2][8]. - Pascal Daloz has been with Dassault Systèmes for 25 years and shares a vision with Charlès to push the boundaries of science and innovation [3][4]. Company Vision and Strategy - The company aims to lead the transformation powered by Industrial AI through its 3D UNIV+RSES initiative, which is a long-term commitment to redefine industry innovation and competition in the Generative Economy [5][8]. - Daloz emphasizes the importance of maintaining the freedom necessary for Dassault Systèmes to remain a game-changer and accelerate growth [5][6]. Legacy and Future Direction - Bernard Charlès, as a co-founder, has been instrumental in guiding Dassault Systèmes from a startup to a world leader, fostering a culture of innovation and sustainability [4][9]. - The transition is seen as a strong foundation for the continued development of Dassault Systèmes, with a focus on high-quality standards and the successful engagement of the next generation of AI-based industry solutions [9].

Core Viewpoint - Dassault Systèmes announces the appointment of Pascal Daloz as both Chairman and Chief Executive Officer following the resignation of Bernard Charlès for personal reasons, ensuring continuity in leadership and governance [2][8]. Leadership Transition - Bernard Charlès has stepped down as Executive Chairman and member of the Board, effective immediately, citing personal reasons [2][8]. - Pascal Daloz, currently the CEO, will take on the additional role of Chairman, effective February 21, 2026, as recommended by the Compensation and Nomination Committee [2][3]. Vision and Strategy - Pascal Daloz expressed gratitude towards Bernard Charlès for his leadership and shared vision of transforming industries through innovation, particularly in the realm of Industrial AI and the 3D UNIV+RSES initiative [3][5]. - The company aims to redefine industry operations and competition in the Generative Economy, emphasizing a long-term commitment to innovation and growth [5][8]. Legacy and Future Direction - Bernard Charlès, as a co-founder, has been instrumental in guiding Dassault Systèmes from a startup to a global leader, fostering a culture of innovation and sustainability [4][9]. - The transition is seen as a strategic move to maintain trust among clients and ensure the company's successful development moving forward [6][9].

Core Insights - Dassault Systèmes reported a 1% revenue growth in Q4 2025, with a total revenue of €1.68 billion, and a full-year revenue increase of 4% to €6.24 billion, driven by subscription revenue growth of 11% [8][14][15] - The company initiated a revenue guidance for FY 2026, projecting a growth of 3-5% and an operating margin between 32.2% and 32.6% [8][12][18] Financial Performance - Q4 2025 total revenue was €1.68 billion, a 1% increase in constant currencies, while software revenue remained flat at €1.52 billion [14][15] - Full-year 2025 total revenue increased by 4% to €6.24 billion, with recurring revenue up 6% [8][15] - Non-IFRS operating margin for Q4 was 37.0%, up 90 basis points year-over-year, and for FY 2025, it was 32.0%, up 40 basis points [8][10] - Non-IFRS diluted EPS for Q4 was €0.40, a 1% increase, and for FY 2025, it was €1.31, up 2% [8][10] Revenue Breakdown - Subscription and support revenue rose 3% in Q4, representing 76% of software revenue, while licenses and other software revenue decreased by 7% [14][15] - In Q4, the Americas region saw a 3% revenue increase, Europe experienced a 5% decline, and Asia grew by 6% [14][15] - For FY 2025, Industrial Innovation software revenue rose 6% to €3.13 billion, while Life Sciences revenue decreased by 2% to €1.08 billion [15][16] Strategic Focus - The company aims to lead the Industrial AI transformation through its 3D UNIV+RSES initiative, focusing on long-term commitments to redefine industry operations [4][5] - In 2026, Dassault Systèmes plans to introduce Annual Run Rate (ARR) reporting to enhance visibility into its recurring revenue base [8][11] - The partnership with NVIDIA is highlighted as a strategic move to combine virtual twins with accelerated computing for future industry models [6][8] Future Outlook - The company anticipates total revenue growth of 3-5% for FY 2026, with operating margin expansion of 40-80 basis points and EPS growth of 3-6% [12][18] - The introduction of unique Industrial AI offerings and value-based monetization models is expected to drive growth and profitability [11][12]

Core Insights - Dassault Systèmes reported a Q4 2025 revenue growth of 1% and a full-year revenue growth of 4%, with a recurring revenue increase of 6% driven by an 11% growth in subscription revenue [2][9][10] - The company initiated a revenue guidance for FY26, projecting a growth of 3-5% [2][9] - The CEO emphasized the long-term commitment to leading the Industrial AI transformation through their 3D UNIV+RSES initiative [5][6] Financial Performance - Q4 2025 total revenue reached €1.68 billion, while full-year revenue was €6.24 billion, reflecting a 4% increase [14][15] - Non-IFRS operating margin for Q4 was 37.0%, up 90 basis points year-over-year, and for FY25 it was 32.0%, up 40 basis points [9][10] - Diluted EPS for Q4 was €0.40, a 1% increase, and for FY25 it was €1.31, a 2% increase [14][15] Revenue Breakdown - Subscription and support revenue rose 3% in Q4, representing 76% of software revenue, while services revenue increased by 11% [15][16] - The Americas saw a 3% revenue increase, Europe experienced a 5% decline, and Asia grew by 6% [15][16] - Industrial Innovation software revenue rose 1% to €880 million, while Life Sciences software revenue decreased by 4% to €264 million [19][22] Strategic Focus - The company is focusing on disciplined execution and aligning resources around strategic priorities to deliver measurable impacts [6][12] - New AI-native generative solutions were launched, and a partnership with NVIDIA aims to enhance capabilities in Industrial AI [7][8] - The introduction of Annual Run Rate (ARR) reporting in 2026 is intended to provide better visibility into recurring revenue health [9][12] 2026 Financial Objectives - The company anticipates total revenue growth of 3-5% for FY26, with an operating margin between 32.2% and 32.6% [21][24] - Diluted EPS is projected to be between €1.30 and €1.34 [21][24] - The company expects subscription revenue to accelerate as customers adopt new business models [12][21]

Financial Data and Key Metrics Changes - Full year sales and revenues reached $67.6 billion, the highest in the company's history, with a 4% year-over-year growth [6][10] - Adjusted operating profit margin was 17.2%, and adjusted profit per share was $19.06 [6][10] - Fourth quarter sales and revenues were $19.1 billion, an 18% increase year-over-year, with adjusted operating profit margin at 15.6% and adjusted profit per share at $5.16 [8][25] Business Line Data and Key Metrics Changes - Construction Industries sales increased by 15% in Q4 to $6.9 billion, with a profit decrease of 12% to $1.0 billion [29][30] - Resource Industries sales rose by 13% in Q4 to $3.4 billion, with a profit decrease of 24% to $360 million [31] - Power and Energy sales increased by 23% in Q4 to $9.4 billion, with a profit increase of 25% to $1.8 billion [32] Market Data and Key Metrics Changes - North America showed strong growth in construction, while EAME and Asia Pacific saw slight declines [9] - Latin America experienced better-than-expected growth [9] - Power generation sales exceeded $10 billion, with over 30% year-over-year growth [14] Company Strategy and Development Direction - The company aims to achieve $30 billion in services revenues by 2030, with a focus on digital and technology initiatives [11][22] - The strategy is centered on commercial excellence, advanced technology leadership, and transforming operations [22] - The company is committed to returning substantially all MP&E-free cash flow to shareholders over time [11][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong backlog of $51 billion, which provides momentum for 2026 [15][16] - The outlook for 2026 anticipates sales growth of around 5%-7%, supported by healthy end markets and positive price realization [15][16] - Management acknowledged the ongoing impact of tariffs but remains committed to managing costs effectively [39][40] Other Important Information - The company generated $9.5 billion in MP&E-free cash flow for 2025, allowing for significant shareholder returns [11][34] - The company plans to increase capital expenditures to around $3.5 billion in 2026 [16][34] Q&A Session Summary Question: Can you comment on order growth and backlog? - Management highlighted strong order growth across all segments, with a backlog of $51 billion, which is 70% higher than the previous year [53][54] Question: What is the outlook for power generation capacity? - Management indicated that capacity increases are on schedule, with significant steps expected by the end of 2026 [64] Question: How does backlog growth relate to sales guidance? - Management explained that the backlog includes a significant increase in dealer inventory, which will impact sales growth expectations [69]

Core Insights - The semiconductor industry is experiencing significant growth driven by the demand for artificial intelligence, with many companies projecting strong earnings for 2025 [1][2][3][4]. Industry Performance - The semiconductor market is recovering globally, with companies like ShenGong Co. expecting a net profit of 90 million to 110 million yuan for 2025, representing a year-on-year increase of 118.71% to 167.31% [2]. - Shannon Chip expects a net profit of 480 million to 620 million yuan for 2025, with a growth rate of 81.77% to 134.78%, driven by increased demand for enterprise-level storage products due to the rise of generative AI [3]. - Zhongwei Company anticipates a revenue of approximately 12.385 billion yuan for 2025, a year-on-year increase of about 36.62%, and a net profit of 2.08 billion to 2.18 billion yuan, reflecting a growth of 28.74% to 34.93% [4]. R&D Driven Growth - Companies are increasing R&D investments to support growth, with Allwinner Technology projecting a net profit of 251 million to 295 million yuan for 2025, a growth of 50.53% to 76.92% [5]. - Juchip Technology expects a revenue of 922 million yuan for 2025, a year-on-year increase of 41.44%, and a net profit of 204 million yuan, up 91.40% [6]. Institutional Focus on Sustainability - Institutions are closely monitoring semiconductor companies for their AI-related orders and earnings sustainability, with companies like Chip Origin reporting a record new orders of 2.494 billion yuan in Q4 2025, with over 84% related to AI computing [7]. - Companies are also providing products for AI servers and humanoid robots, indicating a broadening application of semiconductor technologies in various sectors [7]. Industrial AI Development - The domestic industrial AI sector is expected to accelerate, with advancements in AI applications across design, manufacturing, and management processes, as reported by Shanxi Securities [8].

Group 1 - The core viewpoint of the news is that the AI cloud market in China is expected to experience significant growth, with Alibaba Cloud aiming to capture 80% of the market increment by 2026, indicating a transformative phase for the cloud computing industry driven by AI [1] - The AI and industrial software sectors are predicted to accelerate their integration, with IDC forecasting a compound annual growth rate (CAGR) of 41.4% for the AI+industrial software segment from 2024 to 2029, significantly outpacing the 19.3% CAGR of core industrial software during the same period [2] - The China Securities Artificial Intelligence Theme Index (930713) includes 50 listed companies that provide foundational resources, technologies, and application support for AI, reflecting the overall performance of AI-related securities [2] Group 2 - As of December 31, 2025, the top ten weighted stocks in the China Securities Artificial Intelligence Theme Index account for 58.08% of the index, with notable companies including Zhongji Xuchuang, Xinyi Sheng, and Cambricon [2] - The AI Artificial Intelligence ETF (512930) closely tracks the performance of the China Securities Artificial Intelligence Theme Index, providing investors with exposure to the AI sector [3]