Dassault Systèmes SE (OTC:DASTY) Q4 2022 Earnings Call Transcript

Again, many of you are still focusing on the SOLIDWORKS 3DEXPERIENCE, the new generation, but the WORKS family is much more broader than this. Just to give you an indicator, the DELMIA WORKS family is growing higher than 30% this quarter. And you remember, when we did this move, it was a bet that we will be able to address the mainstream market with one single product covering EFP and at the same time, targeting company being almost 100 million in revenue, having two production sites and going indirect to make it happen. And I think this is really happening, and it’s really taking off. And this is changing the nature of what we do for the mainstream market because the point is not only to address the design, but to start to link all the different domains from the design, the simulation and tests, the life cycle management and the productions altogether with a comprehensive offer.

And that’s what is at stake. And to make this happen against the cloud is really the way. And we won almost little bit more than 20,000 new customers this year, and more than 25% of them are on cloud. And the vast majority are relying on the WORKS family, right? So, that’s where we are. And in terms of contribution if that was the question, yes, we are still below 10%.

Jay Vleeschhouwer: Okay. Finally, with regard to Auto and Aero. In Auto, we’ve had some examples of you being adopted by some of the newer EV companies, one of whom, for example, presented at your analyst meeting, but could you comment on DS adoption by the more traditional car companies moving into EV like BMW and so forth? I mean, I would have to imagine there’s a substantial opportunity there for incremental adoption. If you could talk about that, not just €“ in fact, the startups. And then in Aero, Boeing has said that they don’t expect to have a major new commercial aircraft program for the remainder of the decade. How might that affect your growth with what has traditionally been one of your largest customers and a supply chain if there is no new program of that kind?

Pascal Daloz: Okay, so let’s start with the first question. And Bernard, feel free to add whatever you want.

Bernard Charles: I’ll take Boeing.

Pascal Daloz: You will take Boeing. Okay, good. So, if you look at the Auto landscape at large, the reality, thanks to the good reference we have with the newcomers almost for the last decade. If you remember, we started with Tesla more than 10 years ago, right. All the incumbents are moving along this way. And we have enough proof point, for example, in the U.S. for this moving, right, on the entire electrification programs and EV programs. In Germany, you were mentioning Porsche is one of them, Volkswagen is another one. I think BMW is moving also slowly, but surely, let’s say this way. JLR is done, 100% is developed on top of also because it was €“ remember, when at the time of the PSC and open merge, one of the reasons why they’re able to do this fast integration because they were using 3DEXPERIENCE platform.

Toyota is also adopting the 3DEXPERIENCE platform for the new EV cars. So, I think Honda. So, I think we are clearly taking the benefit of this. And to come back to your point, we start to see the benefit also in the supply chain. And that’s something which is visible in the pipeline for 2023. The resellers, the one addressing the Auto and Aerospace supply chain, but specifically the Auto, we see the pipeline in a much better shape compared to last year. Bernard?