• IFRS total revenue increased 7%. Non-IFRS total revenue increased 8% with software revenue growth of 7% and services revenue growth of 10%. First quarter results include the addition of CST, following the completion of its acquisition on September 30, 2016. Excluding acquisitions, total revenue and software revenue growth would have been 6% and 5%, respectively. (All growth rates in constant currencies.)
• During the 2017 first quarter the Company’s largest industries, Transportation and Mobility and Industrial Equipment led the growth in software revenue. Diversification Industries represented 32% of total software revenue in the 2017 first quarter, with the strongest growth recorded in Consumer Products Good-Retail and Architecture, Engineering and Construction, well supported by High Tech.
• On a regional basis, Asia non-IFRS software revenue increased 6% led by China, South Korea and India. In Europe non-IFRS software revenue increased 10% and was led by France and Southern Europe. In the Americas, non-IFRS software revenue increased 5%. The Company saw strong and broad growth in total for High Growth Countries. (All growth rates in constant currencies.)
• Non-IFRS software revenue, which includes new licenses and recurring software revenue, increased 7%. Specifically, recurring software revenue grew 8% on strong maintenance subscription performance and represented 74% of total software revenue in the 2017 first quarter. New licenses revenue increased 6% including other software revenue. (All growth comparisons are in constant currencies.)
• By product line and on a non-IFRS basis, SOLIDWORKS software revenue increased 12% reflecting a good progression in new licenses software revenue. CATIA software revenue increased 4% with growth across the three regions. ENOVIA software revenue increased 2% with fewer large deals in the quarter compared to the year-ago period. Other Software increased 10% reflecting the addition of CST and on an organic basis was led by QUINTIQ, EXALEAD and SIMULIA. (All growth comparisons are in constant currencies.)
• IFRS operating income decreased 2%. Non-IFRS operating income increased 10% to €200.7 million. The non-IFRS operating margin was stable at 26.2%, with increased investments and acquisition dilution offset by net favorable currency fluctuations.
• The IFRS and non-IFRS effective tax rates were 31.8% and 31.9%, respectively in the 2017 first quarter. In comparison, the year-ago period IFRS and non-IFRS effective tax rates of 19.9% and 25.8%, respectively, benefited from a large tax reserve reversal.
• Net income and net income per share on both an IFRS and non-IFRS basis reflected strong increases in the 2017 first quarter effective income tax rates as discussed above. On an IFRS basis, diluted net income per share of €0.33 decreased 6%. Non-IFRS diluted net income per share of €0.53 increased 4% in total or 15% excluding a 5 cents impact from a reversal of tax reserves in the year-ago first quarter.

Cash Flow and Other Financial Highlights

Net operating cash flow increased 12% to €348 million for the quarter ended March 31, 2017, compared to €309 million for the 2016 first quarter, reflecting working capital evolution including change in timing of US tax down-payments, growth in unearned revenue and net results adjusted for non-cash items.

Dassault Systèmes’ net financial position totaled €1.83 billion at March 31, 2017, compared to €1.49 billion at December 31, 2016, reflecting an increase in cash, cash equivalents and short-term investments from €2.49 billion to €2.83 billion, with long-term debt stable at €1.00 billion.

Cash Dividend Recommendation, Annual Shareholders’ Meeting Date and Filing of Regulatory Annual Report

The Board of Directors has scheduled the Annual Shareholders’ Meeting for May 23, 2017 and is recommending a dividend per share equivalent to €0.53 per share for the fiscal year ended December 31, 2016, representing an increase of approximately 13% compared to the prior year €0.47 per share. In addition, as in recent years, it will also be proposed that each shareholder be granted the option to choose to receive payment of the dividend in cash or new shares. Shareholders may choose payment of the dividend in cash or new shares between May 30, 2017 and June 15, 2017, inclusive. Shares will be traded ex-dividend as of May 30, 2017. Dividends will be made payable as from June 26, 2017. These recommendations are subject to approval by shareholders at the Annual Shareholders’ Meeting. For further information, see the Company’s 2016 Document de Référence filed with the French Autorité des Marchés Financiers (AMF) on March 22, 2017. The 2016 Document de Référence and an English language translation of this document are available on the Company’s website.

Summary of Recent Business, Technology and Customer Highlights