• On an IAS 18 basis with year over year comparisons at constant currency: Total revenue increased 9% (IFRS) and 10% (non-IFRS). Acquisitions contributed 5 percentages points to the non-IFRS revenue growth rate in the third quarter.
• On an IAS 18 basis and in constant currencies: Software revenue increased 9% (IFRS and non-IFRS). Licenses and other software revenue grew 7% (IFRS and non-IFRS), led by double-digit growth for CATIA, DELMIA, QUINTIQ and BIOVIA. Non-IFRS recurring revenue, comprised of subscription and support revenue, increased 10% and represented 74% of non-IFRS software revenue in the third quarter. On an organic basis, non-IFRS software revenue increased 5% in the third quarter with licenses and other software growth of 4% and recurring software growth of 6%.
• On a regional and IAS 18 basis: Asia non-IFRS software revenue increased 13% led by China and India. Europe non-IFRS software revenue increased 8% led by North Europe and Central Europe as well as Russia. Americas non-IFRS software revenue increased 8%, principally driven by acquisitions and improving results in Latin America. High Growth Countries non-IFRS software revenue increased 15%. (All growth rates are in constant currencies.)
• In the third quarter, 3DEXPERIENCE software revenue was up 14% at constant currency on an IAS 18 basis, with some of the larger transactions of the quarter in Marine & Offshore, Aerospace & Defense, Consumer Packaged Goods-Retail and Transportation & Mobility.
• Services revenue increased 13% in constant currencies (IAS 18 IFRS and non-IFRS) on a year over year basis led by growth in 3DEXPERIENCE services activity as well as the contribution from acquisitions.
• IAS 18 IFRS operating income increased 9.0%. IAS 18 non-IFRS operating income increased 6.6% to €256.6 million. The non-IFRS operating margin was 30.9%, in line with the Company’s objective, compared to 32.0% in the year-ago period, reflecting acquisition dilution of 110 basis points.
• Principally reflecting the U.S. Tax Reform Act of 2017, the Company’s IAS 18 IFRS and non-IFRS effective tax rates decreased to 29.0% and 29.1%, respectively, in the 2018 third quarter compared to 32.9% and 31.4%, respectively, in the 2017 third quarter.

• IAS 18 IFRS diluted net income per share increased 20% as reported. IAS 18 non-IFRS diluted net income per share totaled €0.71, increasing 11% both as reported and at constant currency.

Nine Months Financial Summary
(Unaudited)

Nine Months 2018 versus 2017 Financial Comparisons on an IAS 18 Basis