Dassault Systèmes SE — Call Transcript 2026

Good morning, everyone. Marie Dumas from Dassault Systèmes. Thank you for joining this presentation. Pascal Daloz, our CEO and Chairman, and Rouven Bergmann, our CFO, are on the line with me to discuss our first quarter 2026 earnings. During this presentation, results are prepared in accordance with IFRS. The financial figures discussed on this conference are on a non-IFRS basis, with revenue growth rates on a constant currency basis, unless otherwise noted. Some of the comments on this call contain forward-looking statements that could differ materially from actual results. Please refer to today's press release and the risk factor section of our 2025 universal registration document. All earnings materials are available on our website. I'd like now to hand over to Pascal Daloz, CEO and Chairman. Thank you, Marie, and good morning to all of you. It's always a pleasure to be at this time of the year, physically in London, and thank you for everyone being with us today. I know it was not easy because it's Friday in London. Again, thank you for being here. Before handing over to Rouven, I really would like to put this quarter into the perspective of our trajectory. Remember what I say, 2026 is really the year of execution. Not vision, not strategy, execution. Execution to strengthen the foundation for sustainable growth, but more importantly, to accelerate our transition to subscriptions and to deploy our industrial AI strategy. Let me start with where we are. Back in February, we set a clear commitment. Today, we are, I think, delivering on them. Q1 is on track. Revenue up 3%. No surprises, no deviation. We confirm our full-year outlook, 3%-5% growth, with an acceleration in the second half. I think beyond the numbers, what matters is really the trajectory we are building. The key question is really how we are delivering this. I think we are doing it through three priorities. The first one is transforming our existing client. The second one is expanding into new frontier to conquer new domains. The third one is scaling industrial AI. I think we're executing them consistently. Now let's zoom on the first one, the install base. If you look at it, globally, our client, they are not slowing down, because I heard you many times saying, you have a large install base, but most of your customers are slowing down. I don't think so, but they are changing. They are transforming. They are adapting themselves. Why I'm saying this is because they are not constrained by the demands, but they are constrained by the complexity. Too many systems, too many regulations, too many geopolitics. At the end, this is creating a lot of frictions between design and executions, between sourcing and supply. This is really where we come in. The proof of what I'm saying, if you pay attention and you look at clearly what is underlying the performance, I would encourage you to look at the annual run rate, which is up 6% this quarter. The cloud is up 8%. It's more than twice the total growth, and 3DEXPERIENCE is up 7%, despite, if you remember, a high comparison base. This is not just a shift in terms of tools, it's really a way how these companies are operating today. The second lever is the new frontier, and the new frontier is really where the growth will come next. Let's zoom first in life sciences. The environment remains challenging, but I think our platform approach is starting to deliver results. I will come back later on this. In the consumer space, we see discipline, speed and scale, and strong growth in apparel and growing momentum in food and beverage and retail. I think we are building strong position. The third lever is obviously 3D Universes, which is one of the most important shift because this is where AI moves from promises to reality. No more pilots or proof of concept, but real use cases in production. All of this is powered by our AI architecture, which has been designed purposely for the industry. Now, if we step back and we look at the industry, there are a few things I want to share with you. One thing is clear, I think we are increasingly acting as a critical partner for many, many of our customers. The first comment I want to make is the performance of Mainstream. Mainstream is really broad base. Right? SOLIDWORKS continue to drive the momentum. Why this is important, because usually it's an early indicator of the underlying demands across industries. This is extremely important to have this momentum still going on. Now, if I zoom in transportation and mobility, demand is holding despite the volume pressure, and I think we remain the reference for most of programs around the world. More importantly, this quarter, we continue to expand in America. In aerospace and defense, after a strong comparison last year, you remember we had this large deal with Lockheed Martin. The next wave is ahead, and we see budget increasing, and we are starting to see some traction, especially in the defense part of the marine and offshore. But beyond the core, there are interesting things going on. I told you in the consumer, growth is really strong, driven by Centric, with sizable wins in apparel. I could mention Nike, for example. Growing momentum in food and beverage and retail. This quarter, we signed landmark deals. We signed Amazon for the retail. We signed J.M. Smucker, Ferrero in Italy. So those are really very flagship customers, and this is a good illustration of the momentum we see in this. In the High-Tech, I think our solutions are benefiting from the global scale-up of AI and cloud infrastructure. I think it's something which is more and more visible in our revenue streams. In life sciences, we are transforming a fragmented and slow environment with the platform approach. Finally, in infrastructure, growth is really driven by the complex energy program, where I think sovereignty matters. There is one common piece across all the industry. I think we are helping our customers to move faster, to improve quality, and to use their capital much more efficiently. Now let's zoom on some customer examples, and let's make it concrete. The first one is Eaton. I don't know if you know Eaton. It is one of the global leaders in intelligent power management. More importantly, they are the center of electrification. Their challenge, very simple, is to scale execution without adding complexity. Their answer is unifying everything on 3DEXPERIENCE on the cloud. As a result, today, it's over 20,000 users working on one single system. The net benefit of this is faster time to market, optimized cost, and value creation in the hundreds of millions EUR. Another example, and I use it, I take it because we are here in London, is U.K. Fusion Energy. One of you know them because they are the ones having the ambitions to deliver the fusion power plant by 2040. It's one of the most complex engineering challenges in the world. In fact, they choose 3DEXPERIENCE as well as an operating system to connect the ecosystem, on one hand, to ensure the data continuity across all the different domains, all the different disciplines, and they build a secure infrastructure with this. I think this is really a very interesting example how the transformation could be at the frontier of the innovations. Now let's look at the second lever with concrete examples, the new frontier. I spoke about the semiconductor, and you know there is a race for AI infrastructure right now. Designing advanced chips is extremely complex. I think with our multi-physics simulations, company like Annapurna Labs can design and validate faster, delivering the next generation of cloud infrastructure. In this specific case, Annapurna, it's an Amazon company, and they are the one developing the specific chip for the AWS data center. In life sciences, I think there are interesting things going on, and I'm sure Rouven will come back on this. We are reinventing the CRO business model. Why so? Because we are shifting them from a labor-intensive approach to an AI-driven operating model. I think with our AI-powered metadata platform, company like WCT, Worldwide Clinical Trials, one of the largest CROs, they are moving from thousands of fragmented systems, again, to one unified enterprise solutions. This is important because for them, this has enabled them to do faster studies, better executions, and really real-time insight. This is driving both their top lines but also their margin improvements. Now, in the consumer, speed is critical. With Centric PLM, J.M. Smucker really accelerate the product development while they are maintaining the quality and the control. The result, again, is faster innovation, better products, and a model that can scale across the industry and across all the product line they have. Now, let me make some comment related to 3D Universes, the third level. I think this quarter we are delivering tangible value. For the one who had the chance to be at Next last month, we demonstrated how we are connecting the full life sciences cycle, from the discovery to the clinical and to the real-world outcomes. How we do this, we are using virtual twins to synchronize, on one hand, the drug life cycle, all the different steps the drug needs to follow in order to be discovered, tested, produced, introduced on the market. We do it also by synchronizing with the patient journey. This is where the drug is applied, where basically you collect the real insight. We have also introduced Dot. Dot is our virtual companions for clinical intelligence, and the results are very promising. It's 30%-40% higher enrollment rates. As you know, when you do clinical studies, the ability to enroll the patient is really something extremely critical, and I think this is changing the game. More importantly, we have witnessed also the ability to create the clinical data corpuses in a much faster. In fact, we have divided the build time by five. It's really a step change in the performance. Another thing which has been extremely important, we were participating to the GTC, the large, basically, ecosystem event around AI in San Francisco, and we showcase our industrial AI architecture. You can see on the slides you have basically all the different layers. The takeaway is what? This has been built on 40 years of science, industrial data, and this is connecting design simulations, data, and the workflow with one unified systems. The key differentiation is at the core of this system, we are putting what we call the Industry World Model. In the same way companies like Anthropic, they have their foundational model with basically the language model. Dassault Systèmes is building the entire AI strategy, putting the Industry World Model at the core. It's not on the top, it's really at the core. Finally, we are releasing our Virtual Companions. I spoke about it many times. You can see you have the lists there. They are becoming more specialized, more intelligent, and more connected. Why so? Because in fact, we have this double approach. They combine industry know-how on one hand, and the domain expertise, the domain knowledge on the other hand, and we do this also by leveraging the real-time data. This is how those Virtual Companions are really helping us to scale intelligence across the company. If you are okay, I really want to make a quick demo just for you to see it. If you can launch the video, please. Here, what you see on screen is a clear illustration of the shift underway in engineering and the market opportunity it creates. You still know that there are several million professionals still working in 2D, even if the 3D is already an industry standard. Now, AI helps us to make the move from 2D to 3D possible. How we do this, because we are lowering the skills barrier to move. Here is a good illustration. Probably you recognize Manish. Manish is the CEO of SOLIDWORKS and the VP of Research and Developments, and he's performing the same design with and without AI. On the left is the traditional model. Extremely powerful, but in fact, reserved for the experts. On the right, Manish generates an editable 3D model and interacts with it in a natural language with the Virtual Companions. The Virtual Companions is the one proposing the designs, is the one basically knowing how to read the 2D to create the dimension automatically into the systems, creating the structure, and configuring the 3D model to be ready for the simulations. If you know a little bit about this industry, you need to master a lot of skills in order to do these simple things. Why I use this example? Because it's more than a top productivity story. It's about broadening access. It's about expanding the usage from the specialist to everyone and growing, at the end, the addressable market. Remember, with 3D Universes, every object you add into the systems, every simulation, makes it smarter. Every workflow makes it more valuable. This is really the power of the learning platform. To conclude, you know I already announced it, we're going to have a Capital Markets Day, but now I have the date. It will be November 17th this year in Paris. We will go deeper into these visions, and obviously we will disclose the roadmap related to AI and how we are making the link with the financial plans. I think now it's time for me Rouven to hand over to you for more details on the financial performance and the outlook. Cool. Thank you, Pascal. Also, it's a pleasure to welcome you for our first quarter earnings call here in London and everyone following us online. As Pascal, as you mentioned, Q1 was a solid start to the year. We delivered revenue, margin, and EPS well-aligned with our objectives and clearly demonstrating continued focus on execution. Our recurring business continues to perform well. It's very much reflected by the consistent annual run rate growth of 6% year-over-year and a net ARR increase of EUR 35 million sequentially. Also, we saw good operating discipline, which translated to strong operating cash flow performance of nearly EUR 1 billion in the quarter that we generated, which is up 22% at constant currency. The bottom line is we are laying the foundation for acceleration throughout the year and into 2027. Now let's take a look at the details of the financial for the quarter. Total revenue reached EUR 1.51 billion. It was up 3% ex FX, with software and services revenue all up 3%. On revenue mix, upfront license revenue came in slightly better than anticipated, up 9%, driven by a number of significant multi-year deals. Subscription revenue grew 3%, reflecting a tough comparable from the landmark Lockheed Martin deal, which we closed in Q1 of last year. Turning to our recurring business growth, the annual run rate, or ARR, as you know, provides a consistent view of annualized growth at a rate of 6%, independent of the timing of revenue recognition. In the quarter, we added $35 million in annualized value sequentially, which brings the total ARR to EUR 4.371 billion, encompassing all active subscriptions and maintenance contracts. Also including the annualized value of multi-year subscriptions, where IFRS requires us to record the revenue upfront. What drove ARR this quarter? A growing share of cloud bookings and continued expansion of multi-year subscription deals with higher total contract values. The broad-based momentum translated into double-digit subscription ARR growth. Turning to our growth drivers, 3DEXPERIENCE platform is at the core of our growth strategy. In the first quarter, 3DEXPERIENCE saw a 7% ex FX growth and now makes up 42% of our eligible software revenue, up three points compared to last year. Cloud revenue grew 8% overall, with strong momentum in the take-up of 3DEXPERIENCE Cloud up 30%. You heard Pascal earlier discuss some of our key wins, Eaton and U.K. Fusion. There are more. We are executing on our growth drivers with a rate of growth more than two times when compared with our total software revenue. Now let's take a look at the geographies. Europe delivered healthy growth of 7% in the quarter. It was broad-based across regions, with strong contribution from home and lifestyle, as well as key deals in the energy sector. This is a clear illustration of our diversification strategy at work, delivering impactful solutions across an expanding set of end markets. Asia posted mixed performance, up 3%, with a slight decline in revenue in China, which was the primary headwind we faced. Outside of China, the business remained resilient across our geos, with Korea, Japan, and India all contributing meaningfully in core industries. Americas was down 1%, reflecting the tough comparable from the Lockheed Martin contract expansion in Q1 of last year. Excluding this effect, America grew mid to high single digits. The underlying performance was strong, with double-digit growth in transportation and mobility, as well as industrial equipment, and even stronger momentum in the consumer industries. Now let's take a look at the performance of product lines. Industrial innovation was flat in Q1, mainly due to the tough comparable, as mentioned before. Adjusted for this, industrial innovation was up mid-single digits, with the growth replicated across our core manufacturing brands such as DELMIA, SIMULIA, ENOVIA, and CATIA, and driven by good traction on subscriptions. For mainstream innovation, as you see, we had an outstanding quarter, up 14%. Centric delivered a particularly strong return to growth this quarter, driven by notable new client wins, including a significant competitive displacement, and broad momentum across strategic verticals such as food and beverage, retail, and sports apparel. This is a meaningful inflection point and a testament to the new leadership and the entire Centric team. Clients are validating the strengths and differentiation of our offer as they look to transform their business in a fast-moving consumer industry with AI at the center. This performance supports our full-year outlook of mid to high teens growth for Centric, with Q2 mainstream growth expected to normalize sequentially from this quarter's level. Also, SOLIDWORKS momentum continued with high single-digit growth in revenue and double-digit growth in units. The performance was broad-based across geos, and it underscores our strong value proposition in the mainstream market, where short sales cycles and time to value are essential. Now to life sciences. As expected, Q1 was still negative as Medidata's business was mainly impacted by lower revenue contribution from partners. This reflects a carryover from lower 2025 bookings, while in the quarter we saw bookings, volumes, and value trending positive versus last year. Also important to highlight, as Pascal mentioned, we signed a strategic multi-year partnership with Worldwide Clinical Trials, a leading CRO, standardizing clinical activity on Medidata's platform and leveraging AI across all workflows to speed up and simplify study build and execution. We see this as a first-of-a-kind deal. For 2026, we expect H2 to improve over H1, with the objective to reach a positive run rate growth entering 2027. Now turning to cash flow. Clearly a highlight of the quarter. We generated a strong EUR 949 million in operating cash flow in the quarter, up 17% and 22% excluding the currency impact. As anticipated, this was mainly driven by positive working capital dynamics over the quarter, as accounts receivable decreased sequentially, reflecting strong cash collections and a favorable impact from contract liabilities due to higher billing activity. Free cash flow was up 27% in the quarter, driven by the strong operating cash flow. Cash conversion in the first quarter jumped to 208%, versus 167% in Q1 last year. Seasonally, we know Q1 is a strong cash collection quarter, but at the same time, the progressive transition of our business towards subscription and cloud creates an opportunity for continued improvement in cash conversion. To complete the picture, our overall cash and cash equivalents reached EUR 4.875 billion as of Q1, which is an increase of EUR 750 million versus Q1 2025. Looking at the investments in the quarter, it's also worth highlighting that we completed an acquisition of a startup to expand our cyber systems strategy with ALM capabilities, application lifecycle management. Combined with 3DEXPERIENCE, this acquisition offers a unique advantage for companies developing software-defined products. We are excited to have a very talented team joining our cyber systems CATIA team. Our net cash position remains strong and stood at EUR 2.396 billion as of the end of Q1. To the outlook. We are confirming our full-year outlook for total revenue of EUR 6.29 billion-EUR 6.41 billion or 3%-5% growth ex FX, with an operating margin in the range of 32.2%-32.6%, and an EPS of EUR 130- EUR 134, representing 3%-6% growth ex FX. For Q2, we expect total revenue in the range of EUR 1.518 billion-EUR 1.568 billion up 2%-5% ex FX. Software and service revenues are expected to grow in line with total revenue by 2%-5%. We target an operating margin between 29.5%-29.9%, an EPS of EUR 0.29-EUR 0.31, growing in a range of 3%-7%, excluding currency. This is all based on our FX assumptions for an average rate for the year of dollar to euro of 1.18 and yen to euro of 173.37. To conclude, we had a solid start to the year. We delivered performance at objectives and confirm our full-year guidance. Our growth drivers demonstrate that our strategy is working, providing the tailwinds for future growth. Focus on execution and operating discipline drove solid margin and strong cash conversion. This provides the foundation to invest in our long-term growth and accelerate our AI strategy to deliver tangible value for our clients, employees, and of course, to our shareholders. Now, Pascal and I look forward to take your questions. I'm going to start with the room. Can you hear me okay? I think they will give you a mic. Online we will too as well. We'll do the online questions later on. Thank you, Pascal, Rouven. Two from me. First of all, obviously, there's been a slight improvement of growth relative to where we were in kind of Q4. The guidance calls for kind of this gradual acceleration as we move through the year. Can you just help us better understand, again, the building blocks by the different business segments, and in particular, around the pathway for recurring revenue, given that's still at a fairly depressed level. In terms of what is sort of driving this, and linked to that, is obviously ARR has been fairly steady at 6%. How should we think about the link of, or the required run rate in ARR to kind of underpin this revenue growth? Second question, you talked about AI being more complementary and kind of growing the base. How should we think about, also, the further the evolution of the model of the medium to long term, particularly as we move to kind of consumption and outcome-based? I know your goal is to move to more subscription-based, but how much volatility could this potentially bring? Or how do you think about pricing some of your product? Because the feedback we hear is budgeting can also be very difficult for customers, right, with this unpredictability. So just curious to get a sense from your perspective what this means and how does that evolve your model. Thank you. Take the first one. Yes, happy to. Thank you, Mo, for kicking us off in this Q&A session. First, to the building blocks of the guidance. It has not changed entering into the year. Let's be clear. Q1 is a solid start to the year, as we said. It's categorized by strong momentum, as you see, in mainstream innovation, with strong performance of SOLIDWORKS, which was very broad-based. As I mentioned in my prepared remarks, it's a time where sales cycles are very short and time to value needs to be delivered quickly. I think SOLIDWORKS is fitting very good into this mode. From an enterprise standpoint, we signed large deals, more and more cloud-based. You don't see them yet in revenue, but they are reflected in ARR. UK Fusion is one, but Eaton was also cloud. The big Medidata deal is cloud. It's not in revenue, it's in backlog. We're really step-by-step, really driving the execution towards the new business model. Nevertheless, we delivered the revenue as expected at 3%. We had a tough comparison coming into the quarter with a landmark deal of Q1 last year, which created a bit of a bump to achieve coming into the year. We did that. We talked about Centric. Centric is definitely a contributor to growth when we compare it to 2025, where we had a lot of headwind. In the consumer-centric industries, we see a very strong start to the year. I want to be also clear that Q2 will be more in line with our full year model. We are going to see a bit of an effect where Q2 and Q1 will balance off to a good start in H1, but it's not like what it was in Q1. Medidata is as expected in our guidance. We have a lower contribution or negative contribution in the first six months, and we expect to see a break-even as we enter into H2. The bookings momentum of the first quarter are supporting that thesis. Q2 execution will be important to continue to go this path, but I think WCT is a deal. I said first of a kind because here we are transforming the first year ROI from a time and material and study by study model into a platform model in AI. That's very exciting. It really is a demonstration of the strategy that has been laid out at Next. Now to ARR. What's important to keep in mind with ARR, and it's in line with where we are going. ARR is a forward-looking metric. We are looking at the next 12 months run rate of the deals that we are closing. While we know that in revenue recognition, according to the standards, we have to recognize revenue upfront, and we cannot present it in a 12 months run rate ratably. It's mainly true for all the multi-year subscription deals that we are signing. That's also why we have that revenue mix fluctuation with a higher upfront license portion in the first quarter, which is a result of large multi-year subscriptions or a number of larger multi-year subscriptions that we have signed in the first quarter, which we saw in the upfront license, but not in subscription, according to our conventions and policies. The ARR shows the normalized trend on a 12-month basis going forward. That is really the underlying strengths and the acceleration that we anticipate. The ARR is consistent 6%. EUR 35 million sequential growth coming out of Q4, adding to the ARR basis, which is much more than what we did in Q1 last year. We are adding more subscription deals that build the ARR, and we expect the ARR also to grow from there. In fact, subscription ARR was up low teens, while the maintenance ARR was more flattish. We are going to reach this parity of subscription ARR exceeding maintenance ARR probably sooner than what we have modeled, and it will be an inflection point. Relating to the second part of your question, Mo, it's a very important question. I could give some example just to materialize this discussion. I remember a year ago discussing with the CIO of Ford, and he was pissed off by some software vendors basically forcing their AI usage as part of the subscriptions, and at the end, he was exactly telling me what you say, it's becoming unpredictable for them. Based on this, what did we do? In fact, remember, the category of new products, new solution we are developing are not replacing the existing one. The role and the process portfolio are still there, and they will stay. Why I'm saying this is because if you are a customer, you have a choice to use a role and a process and to put people to use them. Or you could decide to use Virtual Companions and Generative Experiences. Point number one, I'm giving them the choice. The second thing is, what do we price? With Virtual Companion, we are pricing the reasoning. If you are a mechanical engineer, if you are a scientist, your reasoning is not the same. That's basically the way to materialize it, we are developing what we call unit of knowledge and unit of know-how, which is basically a token having a certain value. The more sophisticated is your reasoning, the more we charge. From a packaging standpoint, obviously, the Companion will be delivered with a set of tokens. We will give the flexibility to consume more tokens and also to put limits if they are reaching the limits. That's the idea. The Generative Experience is very different, when you want to automate certain things. Right. Here, what we are pricing is a unit of work. It's not the unit of knowledge or the know-how, it's really the unit of work. Same thing, we have a currency, which is a token. We put a price, and depending how much processes you want to optimize, we basically package it with a bunch of tokens. Same thing, we are giving some flexibility on top of it. The last approach is, you remember when we do the virtual twin as a service, meaning rather than to sell the tools, the Virtual Companions, or to automatize the work, we do the work on behalf of our customers. In this case, what we are pricing is the outcome. This is the way. It's very robust. I think you heard me in my introduction saying that really our customers, they are moving from experimentations and pilot to now in production, and they start to ask the right questions. This one is one of them. Obviously, I think the choice we made 3 years or 4 years ago are the right one. Thank you. Thank you. Okay. We can go to Frederic, yeah. If you have the microphone already, it's okay. Frederic Boulan from Bank of America. Thank you. Fred Boulan at Bank of America. Two questions, please. Firstly, on the kind of current macro, can you specify if you're seeing any specific impact on demand, in particular around the auto industry where we've seen some restructuring at some of the OEMs, in particular Renault. Secondly, to follow up on the GenAI discussion, are you seeing some clients rethinking how they approach software build versus buy approach using some LLMs themselves, re-internalizing processes, or emerging competition from GenAI startups? We've seen project primitives out there emerging. We're keen to see if you're seeing any changes in terms of customer behavior on that. Thank you. Same thing, you take the first one, I take the second one. Yes. Happy to. Thank you. On the macro part, yes, of course, we are not immune to any macro changes. However, I think we reflected coming into the year that the auto sector could be a weak spot for us in 2026. To this, there's no incremental update. For sure, European auto sector is going through a tough transformation. We know that this also creates opportunities for us, but the timing of closing of those deals could, as a result, vary and be less predictable. We know that by experience. We have dealt with this, but we have been carefully reflecting that in our outlook. I don't have any incremental things to flag to you. Maybe to give you a piece of how have we managed that in Q1, you see the numbers in Europe were very good despite the challenges that we were facing with some European auto. I can refer to some deals in Europe that we wanted to close, but we didn't. Nevertheless, we ended quite strong in Europe. Those transactions, we continue to work, and they will materialize throughout the year. We're confident about this, but not in Q1, as we know. That was compensated with very good performance in consumer-centric industries. That's the way we need to manage this, that we have a broad portfolio, and the diversification strategy is paying its dividends. The auto sector in North America was healthy. We had a good deal with Ford. In Asia, it's the same. We signed with BYD. It's broad-based. The auto sector continues to play an important role, and we are well set up on a global basis. Maybe one specific comment on Renault, because you mentioned them. For those who have not seen the CEO announce his strategic plan a few weeks ago. As part of it is reducing significantly the engineering capacity. Automatically, the question probably you are asking yourself, does it impact the number of licenses we have within Renault? The answer is no. Why so? Because, again, we are expanding, in fact, the usage of what we do. The second one is they need to do more with less people. This is what is really opening the door for the virtual companion and generative experience I was speaking about. That's really how we are handling this. Now, the second part of your question, also very interesting. What is happening with GenAI? On one hand, the temptation for certain customers to develop themselves certain things, and ability for newcomers to come and to change, basically, the landscape. Let's speak about the first one. Point number one, I met a lot of customers, and it was really the starting point of my discussions. What do you want to do with GenAI? How far you want to go, especially in our space. All of them are telling me, "Pascal, the GenAI story is not a story to disrupt the PLM, the CAD, the simulations market." Why so? Because the level of science, the level of physics, the level of knowledge you should put into the system, is such that it's a huge barrier to entry. We have other things which are much more easy to replace with generative AI. That's point number one. Point number two, they say most of the AI systems right now are based on the text. Large language model. It's written into the name. It's a language model. What we are manipulating is not language, it's biology, it's physics. There are a lot of limitations of what you can do with the current LLM. Nevertheless, there is some connection we can do, and we see more and more customers willing to develop their agentic platform. The way to answer to this is very simple. You have seen in the architecture, we have our own agentic platform, and we are relying on the protocol called MCP, which is allowing agent-to-agent collaboration. The way we are making it possible, we do not get access to agents to our systems. We say, "If you want to have an agent, for example, for the customer support, we need to get access to the deep information you have in the PLM systems." It has to go through Leo, which is one of our agents. To make it happen, we have this protocol in place which is simplifying the life. That's point number one. Related to startups or newcomers, yes, we have some. I would say, especially in the simulation domain, where we see people coming with what they call the surrogate approach, which is a way to approximate basically the physics. There are few things you should keep in mind. It has been a long time that the core value of what we do is how we are integrating the different pieces together, and specifically for the simulation, how we do the multi-physics. Right now, what you can do, you can maybe approximate some mechanical behavior. You can do the same for the thermodynamics. If you have to connect and to bundle the two in order to find the right trade-off, this is a very difficult thing to do. That's point number one. Point number two, at the end, the simulation is more and more guiding the modeling. You need another level of integration between the modelers, the core CAD capabilities, if you want, and the simulation space. Again, this is also where we are making a big difference because it's native in our case. I have met many, many customers, especially in the auto sector, where they are working with some startups. What I was saying in my introductory comment, now it's time for them to not anymore do proof of concept. They want to deploy it at scale on the real use cases. They come back to us and say, "Pascal, could you please help me either to develop an equivalent or to integrate what they do?" Because otherwise it will be isolated and it's not industrial. This is where we are, and that's the reason why I think I'm pretty confident about our way to move forward and also to create a new type of ecosystem, if you want. Because at the end, you remember, we have more applications developed by third party on top of the platform than we have developed ourself. There is no reason not to do the same with the AI as well. Hey, Pascal. Hey, Rouven. It's George Webb from Morgan Stanley. A couple of questions, maybe just continuing on this theme of AI. You've talked about this shift of enterprises now looking to engage to deploy industrial AI at scale in 2026, moving outside of that experimentation phase. I guess the CIOs and decision makers that many of your customers are excited by what AI can unlock, but they're also grappling with that very high pace of change and trying to work out what the right decision pathway is. As much as 3DEXPERIENCE might be that right decision pathway, are you feeling any hesitancy in your customer base to commit to larger 3DEXPERIENCE transformations? How can you kind of adjust your sales motion to get customers comfortable with that? Maybe one on the Medidata side, still obviously running down 3% year-over-year, perhaps reflecting some of those booking trends from last year. You talked to bookings perhaps starting off in 2026 on a better footing. Could you add any color on the magnitude of that better footing? Ultimately, how confident are you that Medidata now is on a sustainably better track going forward? Thank you. So- Reverse order this time, Pascal. Yeah. Again, it's a very good question. What we discover, this AI and GenAI story is in fact helping the platform. Why? Because if you look at the way most of the customers they do, any way they have to unify their systems in order to create the proper data set to train their AI engines. In our space, creating high quality data set cost a lot. With the platform, it's built in. For a long time, they were seeing the platform as a way to connect the different domain together and in a way to create the collaborations within the company and within the ecosystem, the supply. Now they see also the platform as a foundations, basically to be, at least in our space, for the AI strategy. It giving a new perspective on the platform we didn't have. What we see, in fact, it's a different way to go. Your point is extremely valid. For a long time, we were basically selling the platform as a big transformation programs. Now we can also sell the platform on very specific use cases to say, "Okay, you want to tackle this quality issue. You want to do it with an AI-based approach. Let's use the platform and everything we do on this scope." Then after we come six months after with another use cases. To give a concrete example, this is exactly the way we do at Eaton. Eaton, they say, "Okay, the time to launch a new program for five years to do the big transformation is basically not the right time for us. However, if you could come with a very quick win on very focused use cases and progressively we build the foundations, that's the way to deploy. That's the reason why we are also evolving our go-to market in order to give this flexibility, if you want. The takeaway is it's helping in fact the platform story, the platform positioning and the platform game, and it's a way to penetrate the company without having to structure the big projects. That's also something very, very important. At the end, we do sizable deal. Eaton is one of them. Okay. To the second question around life sciences. I'll capture a little bit broader, to really give you the picture on Medidata plus because we are serving a sector holistically, not just with clinical trial software, but at the enterprise level. That's an important part of our strategy and growth driver, to really implement a strong enterprise model and be less dependent on volume and volume fluctuation. WCT is a great example of that in this context because it shows we are putting an end-to-end platform to operate their business and help them transform and be less dependent in fact on volume to volume or quarter to quarter fluctuations on trial starts. We're putting that strategy into place. This is in this segment, a first deal of this kind that we have transformed. Overall, the Medidata revenue and life sciences revenue was impacted, as you said, in Q1 from lower bookings levels from 2025. The transition into 2026 was in fact difficult. We knew that and anticipated that in our outlook. That will also persist in Q2. The improved business and booking trends starting 2026 are going to have an impact in the second half of the year. Also, the WCT deal is not reflected in our revenue numbers of Q1. It will be starting in Q2, and we'll be ramping up throughout the year. We are building with this a sustainable model to be more enterprise-focused, less dependent on volatility, but focused on strong execution and go-to-market. We also mentioned last time that we changed our go-to-market approach. We also have new leadership in go-to-market, and we are very pleased with the starting of the year and the traction that we can already see and the governance and the focus on execution. That will show its result in 2026. We're confident about that, and our objective is to reach more of the break-even point in the second half of the year, Q3, Q4, to improve the numbers, and then enter 2027 with a run rate where we see growth versus 2026. That's the trajectory on what we are on. From an overall business activity and volume, clinical trial starts are still a bit volatile in the market. I'm not expecting that there is a boost in 2026 from a surge in clinical trial starts. That's not what we are modeling. We are looking at this in a way that starts out fairly flat and we continue to win market share, as we said, and we are expanding more towards enterprise and AI. That's where the growth is coming from. When volumes start to improve, that will be another factor, but that's not what we are counting in here. Maybe, Rouven, you can because you were a part of the negotiation of the WCT deal and you have been at least in front of the customer on their feedbacks on the assessment of what we do. Maybe you can share a few things with the folks. Yes. Of course, this was very competitive. This company is also expanding and growing very, very fast. They just completed an acquisition of Catalyst. It's another CRO. So they're growing very fast. I'm sure they're going to expand further organically and inorganically from here without having details, but it's a fast growth company. I don't want to preempt anything on their behalf. That's not my job. But they are really looking for a platform that they can scale and grow their business in the future and transform, really transforming from a service business into an outcome-based business and create an edge in this industry. As I said, it was very competitive and I think we did very well in this contest compared to the competition and beat them. That's why we are confident that this strategy and our AI strategy is really core to transform clinical trial operations, clinical operations, data management. That's what we master, and that's what Clinical Data Studio really opens up a new growth vector. They were very focused on Clinical Data Studio in combination with AI. For them, it's a game changer, including payments, because they facilitate lots of payments to investigators and sites. All of that needs to be automated, and planned. It's a real enterprise transformation. Yeah. Just to add a few things. You remember, we are repeating this all the time. This industry is still document-based. Mm-hmm. We are transitioning them to be model-based. It took some times just for the people to understand what we were saying. Since AI is coming, this is changing the game because the way to unify the system is not anymore through the workflows. That's what Veeva is doing. This is now having a unified model across the different step of the life cycle of the pharma sectors. This is, again, where we are extremely relevant, extremely advanced compared to most of the competitions. This WCT is a good example of this because they did the benchmark at least for almost a year, right? Yes. Surveying all the different solutions on the market. Yes. They did it very seriously because it's a significant investment for them. Just keep this in mind. Balaji next. Hi. Good morning, and congratulations on your results this morning. Two questions from my side. First question on pricing. I understand Dassault's long practice of retaining their fair share of value. Still, how are you seeing clients' approach to price negotiation in the wake of AI, as some checks would suggest that clients are using this more as a negotiating tool. Possibly, is it leading to longer negotiation cycle? Second question on margins. Your headcount is down around 2% year-over-year, while first quarter margin is flat in constant currency basis over last year. Looking at rest of the year, your target is to grow margin by 50 basis points-60 basis points. Should we expect continued contraction in headcount? Also, if you could share color on in which areas these savings are being reinvested in. Thank you. Okay, I will start with the first one. Again, I almost already gave part of the answer on the pricing. The main concern for our customer is to, in fact, when we do the negotiations, to be forced to take AI on top of what they have without controlling basically, the investment case, if you want. The fact that we are giving them this, I would not say as an option, but as a complementary of what we do, it's extremely important. Point number one. Point number two, we do not disrupt the core value of our current portfolio because you still need the role with AI. If you have a Virtual Companion, you still need CATIA to create the geometry. You still need SIMULIA to do the simulation and the certification. Why I'm saying this is because at the end, the case for the virtual companion, the case for the Generative Experiences, are much more made on how they want to operate in the future. That's the reason why we have this unit of knowledge and the unit of work. It's a different conversations compared to what we used to have for the capabilities. That's something very important because you're right. One of my biggest concern was, does it jeopardize all the negotiation we have currently? Because people want to anticipate this discussion. The fact that we have been able to segregate the core value of all different category of solutions, it's helping a lot. A lot. We have, for example, a concrete case. Right now, we are negotiating an extension of installed base within a large automaker in India. They have standardized on the platform, and they say, "But we also want to have AI as part of it." Fine. Again, it's a different discussion. It's a discussion about how much you want to standardize and to automatize, how much you want to scale using Virtual Companion rather than to hire people, versus the price for CATIA or the price for ENOVIA. This is very well accepted, in fact. This segregation is well accepted. Now, the thing they have in mind is, "Okay, but we do not want to, again, to be forced, and we do not want this to be out of control." This is where I think we need a little bit more practice to package it with a level of confidence that we will not come back six months after to them to say, "Hey guys, in fact, you need to spend much more compared to what we have anticipated." That's the reason why in some of engagement we do right now, we are probably giving more flexibility than what they need, because we also need to build our learning curve. Right? Balaji, coming to your second question on margin. I'm very pleased with the margin for the first quarter. It's a good start. The effect on lower headcount really comes from our strategy to capitalize on some investments we did in 2025. Namely, we expanded the growth in people and resources a lot in Centric. We are in a year where we capitalize on those investments before we are reinvesting in the second half to really build the growth trajectory for 2027 and beyond. There are some cycles that we are going through. The lower headcount entering into 2026 will then have an effect also on quarters to follow in terms of the ability to expand margin while revenue starts to accelerate. We'll see that effect. OpEx growth is just below 3%, with payroll being marginally up considering that ACR, or your annual compensation increases and inflation already has to be factored in here. We're offsetting that almost. Where are we spending, to your question? In cloud, AI, infrastructure, Outscale, this is where a significant portion of the cost increase is. Nevertheless, overall, it's sub 3% level, so it's well managed in line with our current revenue growth, but as revenue starts to pick up, we'll see margin expansion throughout the year. That's what is reflected in our guidance. Now, one additional comment I would like to highlight, when you look at the IFRS statement, and you look at the IFRS operating margin, operating income has significantly increased due to lower stock-based compensation. That in the IFRS statement, of course, we have a negative FX impact that we are more than offsetting. From an operating standpoint, I think you see good improvement coming into 2026 and it's under control. Maybe I want to add one thing, because you're right, we are slightly decreasing in term of number of people. Why so? Because there is, I think, a different path for the software company right now. Either you do the SAP way, you cut massively your workforce. Or you do what we do, which is, and the reason we do it this way is because you remember we have engineers, we do not have coders. There is a big difference. What we do with AI, we use this as a way to redistribute the people within the company on different roles. That's the way we do. By doing so, we in a way use the natural attrition, and we are replacing one people among two, right, for the natural attrition. More importantly, internally, we are forcing the realignment of the resources according to the needs where we need to invest. That's what we are currently doing. Very good. Thank you. We will now take questions online. Thank you. To ask a question via the telephone, please press star one and one on your keypad and wait for your name to be announced. To withdraw your question, please press star one and one again. We will now take our first phone question from the line of Laurent Daure of Kepler Cheuvreux. Please go ahead, Laurent. Yes, thank you. Good morning, gentlemen. Two for me as well. The first one is on the Life Sciences. If you could for the year, break it down between Medidata and BIOVIA, and also more precisely on Medidata. I hear the catalyst for the second half, but I'm more keen to see what could go wrong that could lead the second half not to improve from the first one. What is the main risk according to you? What do you lack in terms of visibility? And my second question is that if I take the midpoint of the first half and full year guidance, basically 3% for first half and you would need 5% second half. If you could give us the building blocks, how you get better from the first to the second, I hear probably your Life Sciences, but what else? Thank you so much. Okay. Laurent, thank you for your questions and good morning to you. To the first one, the breakdown is pretty simple. Medidata was down -3%, BIOVIA was slightly up, but the aggregate is still -3%. On the second question, what could go wrong? Well, we're creating a momentum in an uptick in business activity, which is reflected in bookings. When I see how those bookings translate to revenue in 2026 and 2027, it's improving versus start of the year. That is the good outcome of a, I would say, good start of the year in Q1 that has its positive effect on 2027, but it's not reflected in the Q1 numbers. There is clearly a structural improvement that is visible as a result of Q1. We have Q2, we have a decent pipeline of Q2 opportunities that will then build our transition point from H1-H2. That's what we are now focused on executing, Laurent, which is making sure that we are hitting our targets for the second quarter business, and that will really be the translation point from H1 towards H2. We execute the rest of the year. We mentioned that we have strengthened our go-to-market. I feel we have a better distributed and better control from an account management standpoint, including our direct business, enterprise business, mid-market, as well as partners. We have made the necessary improvements as it relates to our contracting model to be less dependent on volatility and volume. All of those things will take effect as we execute 2026. We cannot go backwards. We only go forward, right? We'll see that improvement gradually happening as we move forward. Overall, I think, as I said, Q2 is probably around in line with Q1, and then we will see an improvement in H2. That's what we are currently focused on. Coming back to the second question, if I may, which is the guidance. Q1, you've mentioned Q2 and the rest of the year. Q1 was 3% growth. For Q2, we are focusing on 3.5%-4%. To be precise, you can model the midpoint between 2%-5%. That's where we are. This is where we are anchored towards. Then as you go from Q3 and Q4, for H2, we are looking at 4%-6%. When you do that math, we are landing safely around 4% growth. What are the building blocks of this? Clearly, within Industrial Innovation and 3DEXPERIENCE, that's a continuous growth driver. We know we had the strong year-over-year comparison in the first quarter, but that will be behind us. We have a more favorable year-over-year comparison in H2 versus H1. From an industry standpoint, I think Pascal gave a good overview on where we see growth as well as from a geo standpoint. We have a healthy pipeline in the Americas. We are well-diversified in Asia. China is a bit more bumpy, but we're working on that. In Europe, we are mastering the headwind from the auto sector with diversification. Overall, the pipeline reflects this. That diversification, we mentioned that before. We have less of a dependency on auto than we had in 2025, in 2026, which is good. These are the building blocks, Laurent. They are very clear. Thank you, Rouven. I forgot one thing, which is SOLIDWORKS. I should not have forgotten that because that's on a strong momentum with very strong partner engagement, and you also saw the demo from 2D-3D. It's a strong catalyst for SOLIDWORKS. Yes. Right. Thank you. We will now take our next phone question from the line of Michael Briest of UBS. Please ask your question. Good morning. Thank you. Good to see the reacceleration in Centric. I seem to recall last year, though, you were talking about a SaaS transition. I'm assuming that that's not the way these deals were signed. Can you just give an update on how that business looks between on-premise subscription, perpetual license, SaaS, and how you expect it to develop? Then, an update, Pascal, maybe on what the Chief Transformation Officer, Chief Operating Officer are sort of doing and the plan for the rest of this year. Then also on Bernard's role as Chief Architect, what sort of involvement does he have in product strategy or R&D? Thank you. Yeah. Hello, Michael. Thank you. I take the first question. You're right, the focus of Centric is to transform to a SaaS and cloud business. From an architectural product standpoint, we are very much focused on that. In fact, we also signed deals last year and including this year that are not reflected in revenue because they are billing as cloud models are. They're purely ratable. We had some large on-premise subscription deals in the quarter, that's right. We'll continue to have to master this mix and the transition from the on-premise to cloud. From a product standpoint, this is our number one focus. Our 2030 model for Centric that we have to achieve EUR 1 billion-plus in revenue. It reflects a large share of SaaS subscription, cloud subscription. This is well-aligned within the objectives and is our focus to achieve that. You're right, in Q1, there was also a good contribution from on-premise deals. It's ongoing. Okay, the second part of the question is, you're right, Pierre Barnabé took these positions within Dassault Systèmes, and the primary focus for him is the indirect channel. Specifically, CPE. You remember, we have two different indirect channels. One is the one historically selling SOLIDWORKS, and the one historically selling CATIA, CRE for SOLIDWORKS and CPE for CATIA. I think this is where we need to redynamize. Why so? Because, again, if you look at our ecosystems, there is a big topic going on. Most of them, they know how to sell applications. Not all of them, they know how to sell the platform. Because selling the platform, in reality, you need to be a kind of system integrators. You need to have these kind of skills. Then after, if you want to sell the cloud, you almost need to be an hyperscaler. If you want to sell the domain specializations, you almost need to be an engineering services company. If you want to sell the transformation, you need almost to be a consulting company. Where I want to go, in the past, we have only one model for them, which was the reseller model. I think this model, the time is over to have only one model. We need to have a different ecosystem with different category of partners, having different roles in order to foster the adoptions of everything we do through this, what we used to call CPE. This is clearly the main mission for Pierre. He's coming with a lot of background on this. Basically, he knows extremely well all the IT ecosystem. He has already all the connections, whatever is with the hyperscaler, the consulting firm, the IT services, the engineering services, and he will be the one having the responsibility to build this model and to orchestrate the operating model. Related to Bernard, I think, you know Bernard is a product guy since day one. No one will argue one thing, that he was very instrumental with V4, V5, and V6. Given where we are, I think it's extremely important for me as a CEO of this company to accelerate the AI roadmap. This is where Bernard is focusing right now. To accelerate the AI roadmap, not only with the development team, but also with some early advanced customers, because they are the one also driving, if you want, the roadmap in conjunction with us. He has not only the credibility, he has the leadership, he has the will. He still have the energy to do that. Believe me, he is more happy than he used to. I think it's really for the benefit of the company. Thank you. I think it's time to conclude. Thank you very much for all of you being there. I think we try to reduce a little bit the time for the presentations to give more time for the Q&A. I think you will appreciate. Now, coming back to my closing remark, I think we delivered Q1. We are on track. More importantly, I think we are building something fundamental, with 3D Universes, our AI starts from physics, simulation, industrial data, and really a decade of expertise. Remember, we don't just digitalize the workflow, we capture really the way industry works. Every technology wave is making this promise to simplify. I think this is more and more important because, as I was telling in my introductions, the problem for many of our customer is not the demands, it's the complexities they have to master. This is really, and I'm insisting on this is really where we make the difference. Hope to see you in the coming days and weeks on the road for the 3DEXPERIENCE World and for the one that will have a chance to see, and probably Rouven and Marie will see most of the people. Look forward to the next quarter. Thank you so much.

Speaker 4: Good morning, everyone. Marie Dumas from Dassault Systèmes. Thank you for joining this presentation. Pascal Daloz, our CEO and Chairman, and Rouven Bergmann, our CFO, are on the line with me to discuss our first quarter 2026 earnings. During this presentation, results are prepared in accordance with IFRS. The financial figures discussed on this conference are on a non-IFRS basis, with revenue growth rates on a constant currency basis, unless otherwise noted. Some of the comments on this call contain forward-looking statements that could differ materially from actual results. Please refer to today's press release and the risk factor section of our 2025 universal registration document. All earnings materials are available on our website. I'd like now to hand over to Pascal Daloz, CEO and Chairman. Good morning, everyone. good morning everyone Marie Dumas from Dassault Systèmes. marie dumas from dassault systèmes Thank you for joining this presentation. thank you for joining this presentation Pascal Daloz, our CEO and Chairman, and Rouven Bergmann, our CFO, are on the line with me to discuss our first quarter 2026 earnings. pascal daloz our ceo and chairman and rouven bergmann our cfo are on the line with me to discuss our first quarter 2026 earnings During this presentation, results are prepared in accordance with IFRS. during this presentation results are prepared in accordance with ifrs The financial figures discussed on this conference are on a non-IFRS basis, with revenue growth rates on a constant currency basis, unless otherwise noted. the financial figures discussed on this conference are on a non-ifrs basis with revenue growth rates on a constant currency basis unless otherwise noted Some of the comments on this call contain forward-looking statements that could differ materially from actual results. some of the comments on this call contain forward-looking statements that could differ materially from actual results Please refer to today's press release and the risk factor section of our 2025 universal registration document. please refer to today's press release and the risk factor section of our 2025 universal registration document All earnings materials are available on our website. all earnings materials are available on our website I'd like now to hand over to Pascal Daloz, CEO and Chairman. i'd like now to hand over to pascal daloz ceo and chairman

Speaker 7: Thank you, Marie, and good morning to all of you. It's always a pleasure to be at this time of the year, physically in London, and thank you for everyone being with us today. I know it was not easy because it's Friday in London. Again, thank you for being here. Before handing over to Rouven, I really would like to put this quarter into the perspective of our trajectory. Remember what I say, 2026 is really the year of execution. Not vision, not strategy, execution. Execution to strengthen the foundation for sustainable growth, but more importantly, to accelerate our transition to subscriptions and to deploy our industrial AI strategy. Let me start with where we are. Back in February, we set a clear commitment. Today, we are, I think, delivering on them. Q1 is on track. Revenue up 3%. No surprises, no deviation. Thank you, Marie, and good morning to all of you. thank you marie and good morning to all of you It's always a pleasure to be at this time of the year, physically in London, and thank you for everyone being with us today. it's always a pleasure to be at this time of the year physically in london and thank you for everyone being with us today I know it was not easy because it's Friday in London. i know it was not easy because it's friday in london Again, thank you for being here. again thank you for being here Before handing over to Rouven, I really would like to put this quarter into the perspective of our trajectory. before handing over to rouven i really would like to put this quarter into the perspective of our trajectory Remember what I say, 2026 is really the year of execution. remember what i say 2026 is really the year of execution Not vision, not strategy, execution. not vision not strategy execution Execution to strengthen the foundation for sustainable growth, but more importantly, to accelerate our transition to subscriptions and to deploy our industrial AI strategy. execution to strengthen the foundation for sustainable growth but more importantly to accelerate our transition to subscriptions and to deploy our industrial ai strategy Let me start with where we are. let me start with where we are Back in February, we set a clear commitment. back in february we set a clear commitment Today, we are, I think, delivering on them. today we are i think delivering on them Q1 is on track. q1 is on track Revenue up 3%. revenue up 3% No surprises, no deviation. no surprises no deviation We confirm our full-year outlook, 3%-5% growth, with an acceleration in the second half. I think beyond the numbers, what matters is really the trajectory we are building. The key question is really how we are delivering this. I think we are doing it through three priorities. The first one is transforming our existing client. The second one is expanding into new frontier to conquer new domains. The third one is scaling industrial AI. I think we're executing them consistently. Now let's zoom on the first one, the install base. If you look at it, globally, our client, they are not slowing down, because I heard you many times saying, you have a large install base, but most of your customers are slowing down. I don't think so, but they are changing. They are transforming. They are adapting themselves. We confirm our full-year outlook, 3%-5% growth, with an acceleration in the second half. we confirm our full-year outlook 3%-5% growth with an acceleration in the second half I think beyond the numbers, what matters is really the trajectory we are building. i think beyond the numbers what matters is really the trajectory we are building The key question is really how we are delivering this. the key question is really how we are delivering this I think we are doing it through three priorities. i think we are doing it through three priorities The first one is transforming our existing client. the first one is transforming our existing client The second one is expanding into new frontier to conquer new domains. the second one is expanding into new frontier to conquer new domains The third one is scaling industrial AI. the third one is scaling industrial ai I think we're executing them consistently. i think we're executing them consistently Now let's zoom on the first one, the install base. now let's zoom on the first one the install base If you look at it, globally, our client, they are not slowing down, because I heard you many times saying, you have a large install base, but most of your customers are slowing down. if you look at it globally our client they are not slowing down because i heard you many times saying you have a large install base but most of your customers are slowing down I don't think so, but they are changing. i don't think so but they are changing They are transforming. they are transforming They are adapting themselves. they are adapting themselves Why I'm saying this is because they are not constrained by the demands, but they are constrained by the complexity. Too many systems, too many regulations, too many geopolitics. At the end, this is creating a lot of frictions between design and executions, between sourcing and supply. This is really where we come in. The proof of what I'm saying, if you pay attention and you look at clearly what is underlying the performance, I would encourage you to look at the annual run rate, which is up 6% this quarter. The cloud is up 8%. It's more than twice the total growth, and 3DEXPERIENCE is up 7%, despite, if you remember, a high comparison base. This is not just a shift in terms of tools, it's really a way how these companies are operating today. Why I'm saying this is because they are not constrained by the demands, but they are constrained by the complexity. why i'm saying this is because they are not constrained by the demands but they are constrained by the complexity Too many systems, too many regulations, too many geopolitics. too many systems too many regulations too many geopolitics At the end, this is creating a lot of frictions between design and executions, between sourcing and supply. at the end this is creating a lot of frictions between design and executions between sourcing and supply This is really where we come in. this is really where we come in The proof of what I'm saying, if you pay attention and you look at clearly what is underlying the performance, I would encourage you to look at the annual run rate, which is up 6% this quarter. the proof of what i'm saying if you pay attention and you look at clearly what is underlying the performance i would encourage you to look at the annual run rate which is up 6% this quarter The cloud is up 8%. the cloud is up 8% It's more than twice the total growth, and 3DEXPERIENCE is up 7%, despite, if you remember, a high comparison base. it's more than twice the total growth and 3dexperience is up 7% despite if you remember a high comparison base This is not just a shift in terms of tools, it's really a way how these companies are operating today. this is not just a shift in terms of tools it's really a way how these companies are operating today The second lever is the new frontier, and the new frontier is really where the growth will come next. Let's zoom first in life sciences. The environment remains challenging, but I think our platform approach is starting to deliver results. I will come back later on this. In the consumer space, we see discipline, speed and scale, and strong growth in apparel and growing momentum in food and beverage and retail. I think we are building strong position. The third lever is obviously 3D Universes, which is one of the most important shift because this is where AI moves from promises to reality. No more pilots or proof of concept, but real use cases in production. All of this is powered by our AI architecture, which has been designed purposely for the industry. The second lever is the new frontier, and the new frontier is really where the growth will come next. the second lever is the new frontier and the new frontier is really where the growth will come next Let's zoom first in life sciences. let's zoom first in life sciences The environment remains challenging, but I think our platform approach is starting to deliver results. the environment remains challenging but i think our platform approach is starting to deliver results I will come back later on this. i will come back later on this In the consumer space, we see discipline, speed and scale, and strong growth in apparel and growing momentum in food and beverage and retail. in the consumer space we see discipline speed and scale and strong growth in apparel and growing momentum in food and beverage and retail I think we are building strong position. i think we are building strong position The third lever is obviously 3D Universes, which is one of the most important shift because this is where AI moves from promises to reality. the third lever is obviously 3d universes which is one of the most important shift because this is where ai moves from promises to reality No more pilots or proof of concept, but real use cases in production. no more pilots or proof of concept but real use cases in production All of this is powered by our AI architecture, which has been designed purposely for the industry. all of this is powered by our ai architecture which has been designed purposely for the industry Now, if we step back and we look at the industry, there are a few things I want to share with you. One thing is clear, I think we are increasingly acting as a critical partner for many, many of our customers. The first comment I want to make is the performance of Mainstream. Mainstream is really broad base. Right? SOLIDWORKS continue to drive the momentum. Why this is important, because usually it's an early indicator of the underlying demands across industries. This is extremely important to have this momentum still going on. Now, if I zoom in transportation and mobility, demand is holding despite the volume pressure, and I think we remain the reference for most of programs around the world. Now, if we step back and we look at the industry, there are a few things I want to share with you. now if we step back and we look at the industry there are a few things i want to share with you One thing is clear, I think we are increasingly acting as a critical partner for many, many of our customers. one thing is clear i think we are increasingly acting as a critical partner for many many of our customers The first comment I want to make is the performance of Mainstream. the first comment i want to make is the performance of mainstream Mainstream is really broad base. mainstream is really broad base Right? right SOLIDWORKS continue to drive the momentum. solidworks continue to drive the momentum Why this is important, because usually it's an early indicator of the underlying demands across industries. why this is important because usually it's an early indicator of the underlying demands across industries This is extremely important to have this momentum still going on. this is extremely important to have this momentum still going on Now, if I zoom in transportation and mobility, demand is holding despite the volume pressure, and I think we remain the reference for most of programs around the world. now if i zoom in transportation and mobility demand is holding despite the volume pressure and i think we remain the reference for most of programs around the world More importantly, this quarter, we continue to expand in America. In aerospace and defense, after a strong comparison last year, you remember we had this large deal with Lockheed Martin. The next wave is ahead, and we see budget increasing, and we are starting to see some traction, especially in the defense part of the marine and offshore. But beyond the core, there are interesting things going on. I told you in the consumer, growth is really strong, driven by Centric, with sizable wins in apparel. I could mention Nike, for example. Growing momentum in food and beverage and retail. This quarter, we signed landmark deals. We signed Amazon for the retail. We signed J.M. Smucker, Ferrero in Italy. So those are really very flagship customers, and this is a good illustration of the momentum we see in this. More importantly, this quarter, we continue to expand in America. In aerospace and defense, after a strong comparison last year, you remember we had this large deal with Lockheed Martin. more importantly this quarter we continue to expand in america. in aerospace and defense after a strong comparison last year you remember we had this large deal with lockheed martin The next wave is ahead, and we see budget increasing, and we are starting to see some traction, especially in the defense part of the marine and offshore. the next wave is ahead and we see budget increasing and we are starting to see some traction especially in the defense part of the marine and offshore But beyond the core, there are interesting things going on. but beyond the core there are interesting things going on I told you in the consumer, growth is really strong, driven by Centric, with sizable wins in apparel. i told you in the consumer growth is really strong driven by centric with sizable wins in apparel I could mention Nike, for example. i could mention nike for example Growing momentum in food and beverage and retail. growing momentum in food and beverage and retail This quarter, we signed landmark deals. this quarter we signed landmark deals We signed Amazon for the retail. we signed amazon for the retail We signed J.M. we signed j.m Smucker, Ferrero in Italy. smucker ferrero in italy So those are really very flagship customers, and this is a good illustration of the momentum we see in this. so those are really very flagship customers and this is a good illustration of the momentum we see in this In the High-Tech, I think our solutions are benefiting from the global scale-up of AI and cloud infrastructure. I think it's something which is more and more visible in our revenue streams. In life sciences, we are transforming a fragmented and slow environment with the platform approach. Finally, in infrastructure, growth is really driven by the complex energy program, where I think sovereignty matters. There is one common piece across all the industry. I think we are helping our customers to move faster, to improve quality, and to use their capital much more efficiently. Now let's zoom on some customer examples, and let's make it concrete. The first one is Eaton. I don't know if you know Eaton. It is one of the global leaders in intelligent power management. More importantly, they are the center of electrification. Their challenge, very simple, is to scale execution without adding complexity. In the High-Tech, I think our solutions are benefiting from the global scale-up of AI and cloud infrastructure. in the high-tech i think our solutions are benefiting from the global scale-up of ai and cloud infrastructure I think it's something which is more and more visible in our revenue streams. i think it's something which is more and more visible in our revenue streams In life sciences, we are transforming a fragmented and slow environment with the platform approach. in life sciences we are transforming a fragmented and slow environment with the platform approach Finally, in infrastructure, growth is really driven by the complex energy program, where I think sovereignty matters. finally in infrastructure growth is really driven by the complex energy program where i think sovereignty matters There is one common piece across all the industry. there is one common piece across all the industry I think we are helping our customers to move faster, to improve quality, and to use their capital much more efficiently. i think we are helping our customers to move faster to improve quality and to use their capital much more efficiently Now let's zoom on some customer examples, and let's make it concrete. now let's zoom on some customer examples and let's make it concrete The first one is Eaton. the first one is eaton I don't know if you know Eaton. It is one of the global leaders in intelligent power management. i don't know if you know eaton. it is one of the global leaders in intelligent power management More importantly, they are the center of electrification. more importantly they are the center of electrification Their challenge, very simple, is to scale execution without adding complexity. their challenge very simple, is to scale execution without adding complexity Their answer is unifying everything on 3DEXPERIENCE on the cloud. As a result, today, it's over 20,000 users working on one single system. The net benefit of this is faster time to market, optimized cost, and value creation in the hundreds of millions EUR. Another example, and I use it, I take it because we are here in London, is U.K. Fusion Energy. One of you know them because they are the ones having the ambitions to deliver the fusion power plant by 2040. It's one of the most complex engineering challenges in the world. In fact, they choose 3DEXPERIENCE as well as an operating system to connect the ecosystem, on one hand, to ensure the data continuity across all the different domains, all the different disciplines, and they build a secure infrastructure with this. Their answer is unifying everything on 3DEXPERIENCE on the cloud. their answer is unifying everything on 3dexperience on the cloud As a result, today, it's over 20,000 users working on one single system. as a result today it's over 20,000 users working on one single system The net benefit of this is faster time to market, optimized cost, and value creation in the hundreds of millions EUR. the net benefit of this is faster time to market optimized cost and value creation in the hundreds of millions eur Another example, and I use it, I take it because we are here in London, is U.K. another example and i use it i take it because we are here in london is u.k Fusion Energy. fusion energy One of you know them because they are the ones having the ambitions to deliver the fusion power plant by 2040. one of you know them because they are the ones having the ambitions to deliver the fusion power plant by 2040 It's one of the most complex engineering challenges in the world. it's one of the most complex engineering challenges in the world In fact, they choose 3DEXPERIENCE as well as an operating system to connect the ecosystem, on one hand, to ensure the data continuity across all the different domains, all the different disciplines, and they build a secure infrastructure with this. in fact they choose 3dexperience as well as an operating system to connect the ecosystem on one hand to ensure the data continuity across all the different domains all the different disciplines and they build a secure infrastructure with this I think this is really a very interesting example how the transformation could be at the frontier of the innovations. Now let's look at the second lever with concrete examples, the new frontier. I spoke about the semiconductor, and you know there is a race for AI infrastructure right now. Designing advanced chips is extremely complex. I think with our multi-physics simulations, company like Annapurna Labs can design and validate faster, delivering the next generation of cloud infrastructure. In this specific case, Annapurna, it's an Amazon company, and they are the one developing the specific chip for the AWS data center. In life sciences, I think there are interesting things going on, and I'm sure Rouven will come back on this. We are reinventing the CRO business model. Why so? Because we are shifting them from a labor-intensive approach to an AI-driven operating model. I think this is really a very interesting example how the transformation could be at the frontier of the innovations. i think this is really a very interesting example how the transformation could be at the frontier of the innovations Now let's look at the second lever with concrete examples, the new frontier. now let's look at the second lever with concrete examples the new frontier I spoke about the semiconductor, and you know there is a race for AI infrastructure right now. i spoke about the semiconductor and you know there is a race for ai infrastructure right now Designing advanced chips is extremely complex. designing advanced chips is extremely complex I think with our multi-physics simulations, company like Annapurna Labs can design and validate faster, delivering the next generation of cloud infrastructure. i think with our multi-physics simulations company like annapurna labs can design and validate faster delivering the next generation of cloud infrastructure In this specific case, Annapurna, it's an Amazon company, and they are the one developing the specific chip for the AWS data center. in this specific case annapurna it's an amazon company and they are the one developing the specific chip for the aws data center In life sciences, I think there are interesting things going on, and I'm sure Rouven will come back on this. in life sciences i think there are interesting things going on and i'm sure rouven will come back on this We are reinventing the CRO business model. we are reinventing the cro business model Why so? why so Because we are shifting them from a labor-intensive approach to an AI-driven operating model. because we are shifting them from a labor-intensive approach to an ai-driven operating model I think with our AI-powered metadata platform, company like WCT, Worldwide Clinical Trials, one of the largest CROs, they are moving from thousands of fragmented systems, again, to one unified enterprise solutions. This is important because for them, this has enabled them to do faster studies, better executions, and really real-time insight. This is driving both their top lines but also their margin improvements. Now, in the consumer, speed is critical. With Centric PLM, J.M. Smucker really accelerate the product development while they are maintaining the quality and the control. The result, again, is faster innovation, better products, and a model that can scale across the industry and across all the product line they have. Now, let me make some comment related to 3D Universes, the third level. I think this quarter we are delivering tangible value. I think with our AI-powered metadata platform, company like WCT, Worldwide Clinical Trials, one of the largest CROs, they are moving from thousands of fragmented systems, again, to one unified enterprise solutions. i think with our ai-powered metadata platform company like wct worldwide clinical trials one of the largest cros they are moving from thousands of fragmented systems again to one unified enterprise solutions This is important because for them, this has enabled them to do faster studies, better executions, and really real-time insight. this is important because for them this has enabled them to do faster studies better executions and really real-time insight This is driving both their top lines but also their margin improvements. this is driving both their top lines but also their margin improvements Now, in the consumer, speed is critical. now in the consumer speed is critical With Centric PLM, J.M. with centric plm j.m Smucker really accelerate the product development while they are maintaining the quality and the control. smucker really accelerate the product development while they are maintaining the quality and the control The result, again, is faster innovation, better products, and a model that can scale across the industry and across all the product line they have. the result again is faster innovation better products and a model that can scale across the industry and across all the product line they have Now, let me make some comment related to 3D Universes, the third level. now let me make some comment related to 3d universes the third level I think this quarter we are delivering tangible value. i think this quarter we are delivering tangible value For the one who had the chance to be at Next last month, we demonstrated how we are connecting the full life sciences cycle, from the discovery to the clinical and to the real-world outcomes. How we do this, we are using virtual twins to synchronize, on one hand, the drug life cycle, all the different steps the drug needs to follow in order to be discovered, tested, produced, introduced on the market. We do it also by synchronizing with the patient journey. This is where the drug is applied, where basically you collect the real insight. We have also introduced Dot. Dot is our virtual companions for clinical intelligence, and the results are very promising. It's 30%-40% higher enrollment rates. For the one who had the chance to be at Next last month, we demonstrated how we are connecting the full life sciences cycle, from the discovery to the clinical and to the real-world outcomes. for the one who had the chance to be at next last month we demonstrated how we are connecting the full life sciences cycle from the discovery to the clinical and to the real-world outcomes How we do this, we are using virtual twins to synchronize, on one hand, the drug life cycle, all the different steps the drug needs to follow in order to be discovered, tested, produced, introduced on the market. how we do this we are using virtual twins to synchronize on one hand the drug life cycle all the different steps the drug needs to follow in order to be discovered tested produced introduced on the market We do it also by synchronizing with the patient journey. we do it also by synchronizing with the patient journey This is where the drug is applied, where basically you collect the real insight. We have also introduced Dot. this is where the drug is applied where basically you collect the real insight. we have also introduced dot Dot is our virtual companions for clinical intelligence, and the results are very promising. dot is our virtual companions for clinical intelligence and the results are very promising It's 30%-40% higher enrollment rates. it's 30%-40% higher enrollment rates As you know, when you do clinical studies, the ability to enroll the patient is really something extremely critical, and I think this is changing the game. More importantly, we have witnessed also the ability to create the clinical data corpuses in a much faster. In fact, we have divided the build time by five. It's really a step change in the performance. Another thing which has been extremely important, we were participating to the GTC, the large, basically, ecosystem event around AI in San Francisco, and we showcase our industrial AI architecture. You can see on the slides you have basically all the different layers. The takeaway is what? This has been built on 40 years of science, industrial data, and this is connecting design simulations, data, and the workflow with one unified systems. As you know, when you do clinical studies, the ability to enroll the patient is really something extremely critical, and I think this is changing the game. as you know when you do clinical studies the ability to enroll the patient is really something extremely critical and i think this is changing the game More importantly, we have witnessed also the ability to create the clinical data corpuses in a much faster. more importantly we have witnessed also the ability to create the clinical data corpuses in a much faster In fact, we have divided the build time by five. in fact we have divided the build time by five It's really a step change in the performance. it's really a step change in the performance Another thing which has been extremely important, we were participating to the GTC, the large, basically, ecosystem event around AI in San Francisco, and we showcase our industrial AI architecture. another thing which has been extremely important we were participating to the gtc the large basically ecosystem event around ai in san francisco and we showcase our industrial ai architecture You can see on the slides you have basically all the different layers. you can see on the slides you have basically all the different layers The takeaway is what? the takeaway is what This has been built on 40 years of science, industrial data, and this is connecting design simulations, data, and the workflow with one unified systems. this has been built on 40 years of science industrial data and this is connecting design simulations data and the workflow with one unified systems The key differentiation is at the core of this system, we are putting what we call the Industry World Model. In the same way companies like Anthropic, they have their foundational model with basically the language model. Dassault Systèmes is building the entire AI strategy, putting the Industry World Model at the core. It's not on the top, it's really at the core. Finally, we are releasing our Virtual Companions. I spoke about it many times. You can see you have the lists there. They are becoming more specialized, more intelligent, and more connected. Why so? Because in fact, we have this double approach. They combine industry know-how on one hand, and the domain expertise, the domain knowledge on the other hand, and we do this also by leveraging the real-time data. The key differentiation is at the core of this system, we are putting what we call the Industry World Model. the key differentiation is at the core of this system we are putting what we call the industry world model In the same way companies like Anthropic, they have their foundational model with basically the language model. in the same way companies like anthropic they have their foundational model with basically the language model Dassault Systèmes is building the entire AI strategy, putting the Industry World Model at the core. dassault systèmes is building the entire ai strategy putting the industry world model at the core It's not on the top, it's really at the core. it's not on the top it's really at the core Finally, we are releasing our Virtual Companions. finally we are releasing our virtual companions I spoke about it many times. i spoke about it many times You can see you have the lists there. you can see you have the lists there They are becoming more specialized, more intelligent, and more connected. they are becoming more specialized more intelligent and more connected Why so? why so Because in fact, we have this double approach. because in fact we have this double approach They combine industry know-how on one hand, and the domain expertise, the domain knowledge on the other hand, and we do this also by leveraging the real-time data. they combine industry know-how on one hand and the domain expertise the domain knowledge on the other hand and we do this also by leveraging the real-time data This is how those Virtual Companions are really helping us to scale intelligence across the company. If you are okay, I really want to make a quick demo just for you to see it. If you can launch the video, please. Here, what you see on screen is a clear illustration of the shift underway in engineering and the market opportunity it creates. You still know that there are several million professionals still working in 2D, even if the 3D is already an industry standard. Now, AI helps us to make the move from 2D to 3D possible. How we do this, because we are lowering the skills barrier to move. Here is a good illustration. Probably you recognize Manish. Manish is the CEO of SOLIDWORKS and the VP of Research and Developments, and he's performing the same design with and without AI. This is how those Virtual Companions are really helping us to scale intelligence across the company. this is how those virtual companions are really helping us to scale intelligence across the company If you are okay, I really want to make a quick demo just for you to see it. if you are okay i really want to make a quick demo just for you to see it If you can launch the video, please. if you can launch the video please Here, what you see on screen is a clear illustration of the shift underway in engineering and the market opportunity it creates. here what you see on screen is a clear illustration of the shift underway in engineering and the market opportunity it creates You still know that there are several million professionals still working in 2D, even if the 3D is already an industry standard. you still know that there are several million professionals still working in 2d even if the 3d is already an industry standard Now, AI helps us to make the move from 2D to 3D possible. now ai helps us to make the move from 2d to 3d possible How we do this, because we are lowering the skills barrier to move. how we do this because we are lowering the skills barrier to move Here is a good illustration. here is a good illustration Probably you recognize Manish. probably you recognize manish Manish is the CEO of SOLIDWORKS and the VP of Research and Developments, and he's performing the same design with and without AI. manish is the ceo of solidworks and the vp of research and developments and he's performing the same design with and without ai On the left is the traditional model. Extremely powerful, but in fact, reserved for the experts. On the right, Manish generates an editable 3D model and interacts with it in a natural language with the Virtual Companions. The Virtual Companions is the one proposing the designs, is the one basically knowing how to read the 2D to create the dimension automatically into the systems, creating the structure, and configuring the 3D model to be ready for the simulations. If you know a little bit about this industry, you need to master a lot of skills in order to do these simple things. Why I use this example? Because it's more than a top productivity story. It's about broadening access. It's about expanding the usage from the specialist to everyone and growing, at the end, the addressable market. On the left is the traditional model. on the left is the traditional model Extremely powerful, but in fact, reserved for the experts. extremely powerful but in fact reserved for the experts On the right, Manish generates an editable 3D model and interacts with it in a natural language with the Virtual Companions. on the right manish generates an editable 3d model and interacts with it in a natural language with the virtual companions The Virtual Companions is the one proposing the designs, is the one basically knowing how to read the 2D to create the dimension automatically into the systems, creating the structure, and configuring the 3D model to be ready for the simulations. the virtual companions is the one proposing the designs is the one basically knowing how to read the 2d to create the dimension automatically into the systems creating the structure and configuring the 3d model to be ready for the simulations If you know a little bit about this industry, you need to master a lot of skills in order to do these simple things. if you know a little bit about this industry you need to master a lot of skills in order to do these simple things Why I use this example? why i use this example Because it's more than a top productivity story. because it's more than a top productivity story It's about broadening access. it's about broadening access It's about expanding the usage from the specialist to everyone and growing, at the end, the addressable market. it's about expanding the usage from the specialist to everyone and growing at the end the addressable market Remember, with 3D Universes, every object you add into the systems, every simulation, makes it smarter. Every workflow makes it more valuable. This is really the power of the learning platform. To conclude, you know I already announced it, we're going to have a Capital Markets Day, but now I have the date. It will be November 17th this year in Paris. We will go deeper into these visions, and obviously we will disclose the roadmap related to AI and how we are making the link with the financial plans. I think now it's time for me Rouven to hand over to you for more details on the financial performance and the outlook. Remember, with 3D Universes, every object you add into the systems, every simulation, makes it smarter. remember with 3d universes every object you add into the systems every simulation makes it smarter Every workflow makes it more valuable. every workflow makes it more valuable This is really the power of the learning platform. this is really the power of the learning platform To conclude, you know I already announced it, we're going to have a Capital Markets Day, but now I have the date. to conclude you know i already announced it we're going to have a capital markets day but now i have the date It will be November 17th this year in Paris. it will be november 17th this year in paris We will go deeper into these visions, and obviously we will disclose the roadmap related to AI and how we are making the link with the financial plans. we will go deeper into these visions and obviously we will disclose the roadmap related to ai and how we are making the link with the financial plans I think now it's time for me Rouven to hand over to you for more details on the financial performance and the outlook. i think now it's time for me rouven to hand over to you for more details on the financial performance and the outlook

Speaker 8: Cool. Thank you, Pascal. Also, it's a pleasure to welcome you for our first quarter earnings call here in London and everyone following us online. As Pascal, as you mentioned, Q1 was a solid start to the year. We delivered revenue, margin, and EPS well-aligned with our objectives and clearly demonstrating continued focus on execution. Our recurring business continues to perform well. It's very much reflected by the consistent annual run rate growth of 6% year-over-year and a net ARR increase of EUR 35 million sequentially. Also, we saw good operating discipline, which translated to strong operating cash flow performance of nearly EUR 1 billion in the quarter that we generated, which is up 22% at constant currency. The bottom line is we are laying the foundation for acceleration throughout the year and into 2027. Now let's take a look at the details of the financial for the quarter. Cool. cool Thank you, Pascal. thank you pascal Also, it's a pleasure to welcome you for our first quarter earnings call here in London and everyone following us online. also it's a pleasure to welcome you for our first quarter earnings call here in london and everyone following us online As Pascal, as you mentioned, Q1 was a solid start to the year. as pascal as you mentioned q1 was a solid start to the year We delivered revenue, margin, and EPS well-aligned with our objectives and clearly demonstrating continued focus on execution. we delivered revenue margin and eps well-aligned with our objectives and clearly demonstrating continued focus on execution Our recurring business continues to perform well. our recurring business continues to perform well It's very much reflected by the consistent annual run rate growth of 6% year-over-year and a net ARR increase of EUR 35 million sequentially. it's very much reflected by the consistent annual run rate growth of 6% year-over-year and a net arr increase of eur 35 million sequentially Also, we saw good operating discipline, which translated to strong operating cash flow performance of nearly EUR 1 billion in the quarter that we generated, which is up 22% at constant currency. also we saw good operating discipline which translated to strong operating cash flow performance of nearly eur 1 billion in the quarter that we generated which is up 22% at constant currency The bottom line is we are laying the foundation for acceleration throughout the year and into 2027. Now let's take a look at the details of the financial for the quarter. the bottom line is we are laying the foundation for acceleration throughout the year and into 2027. now let's take a look at the details of the financial for the quarter Total revenue reached EUR 1.51 billion. It was up 3% ex FX, with software and services revenue all up 3%. On revenue mix, upfront license revenue came in slightly better than anticipated, up 9%, driven by a number of significant multi-year deals. Subscription revenue grew 3%, reflecting a tough comparable from the landmark Lockheed Martin deal, which we closed in Q1 of last year. Turning to our recurring business growth, the annual run rate, or ARR, as you know, provides a consistent view of annualized growth at a rate of 6%, independent of the timing of revenue recognition. In the quarter, we added $35 million in annualized value sequentially, which brings the total ARR to EUR 4.371 billion, encompassing all active subscriptions and maintenance contracts. Also including the annualized value of multi-year subscriptions, where IFRS requires us to record the revenue upfront. What drove ARR this quarter? Total revenue reached EUR 1.51 billion. total revenue reached eur 1.51 billion It was up 3% ex FX, with software and services revenue all up 3%. it was up 3% ex fx with software and services revenue all up 3% On revenue mix, upfront license revenue came in slightly better than anticipated, up 9%, driven by a number of significant multi-year deals. on revenue mix upfront license revenue came in slightly better than anticipated up 9% driven by a number of significant multi-year deals Subscription revenue grew 3%, reflecting a tough comparable from the landmark Lockheed Martin deal, which we closed in Q1 of last year. subscription revenue grew 3% reflecting a tough comparable from the landmark lockheed martin deal which we closed in q1 of last year Turning to our recurring business growth, the annual run rate, or ARR, as you know, provides a consistent view of annualized growth at a rate of 6%, independent of the timing of revenue recognition. turning to our recurring business growth the annual run rate or arr as you know provides a consistent view of annualized growth at a rate of 6% independent of the timing of revenue recognition In the quarter, we added $35 million in annualized value sequentially, which brings the total ARR to EUR 4.371 billion, encompassing all active subscriptions and maintenance contracts. in the quarter we added $35 million in annualized value sequentially which brings the total arr to eur 4.371 billion encompassing all active subscriptions and maintenance contracts Also including the annualized value of multi-year subscriptions, where IFRS requires us to record the revenue upfront. also including the annualized value of multi-year subscriptions where ifrs requires us to record the revenue upfront What drove ARR this quarter? what drove arr this quarter A growing share of cloud bookings and continued expansion of multi-year subscription deals with higher total contract values. The broad-based momentum translated into double-digit subscription ARR growth. Turning to our growth drivers, 3DEXPERIENCE platform is at the core of our growth strategy. In the first quarter, 3DEXPERIENCE saw a 7% ex FX growth and now makes up 42% of our eligible software revenue, up three points compared to last year. Cloud revenue grew 8% overall, with strong momentum in the take-up of 3DEXPERIENCE Cloud up 30%. You heard Pascal earlier discuss some of our key wins, Eaton and U.K. Fusion. There are more. We are executing on our growth drivers with a rate of growth more than two times when compared with our total software revenue. Now let's take a look at the geographies. Europe delivered healthy growth of 7% in the quarter. A growing share of cloud bookings and continued expansion of multi-year subscription deals with higher total contract values. a growing share of cloud bookings and continued expansion of multi-year subscription deals with higher total contract values The broad-based momentum translated into double-digit subscription ARR growth. the broad-based momentum translated into double-digit subscription arr growth Turning to our growth drivers, 3DEXPERIENCE platform is at the core of our growth strategy. turning to our growth drivers 3dexperience platform is at the core of our growth strategy In the first quarter, 3DEXPERIENCE saw a 7% ex FX growth and now makes up 42% of our eligible software revenue, up three points compared to last year. in the first quarter 3dexperience saw a 7% ex fx growth and now makes up 42% of our eligible software revenue up three points compared to last year Cloud revenue grew 8% overall, with strong momentum in the take-up of 3DEXPERIENCE Cloud up 30%. cloud revenue grew 8% overall with strong momentum in the take-up of 3dexperience cloud up 30% You heard Pascal earlier discuss some of our key wins, Eaton and U.K. you heard pascal earlier discuss some of our key wins eaton and u.k Fusion. fusion There are more. there are more We are executing on our growth drivers with a rate of growth more than two times when compared with our total software revenue. we are executing on our growth drivers with a rate of growth more than two times when compared with our total software revenue Now let's take a look at the geographies. now let's take a look at the geographies Europe delivered healthy growth of 7% in the quarter. europe delivered healthy growth of 7% in the quarter It was broad-based across regions, with strong contribution from home and lifestyle, as well as key deals in the energy sector. This is a clear illustration of our diversification strategy at work, delivering impactful solutions across an expanding set of end markets. Asia posted mixed performance, up 3%, with a slight decline in revenue in China, which was the primary headwind we faced. Outside of China, the business remained resilient across our geos, with Korea, Japan, and India all contributing meaningfully in core industries. Americas was down 1%, reflecting the tough comparable from the Lockheed Martin contract expansion in Q1 of last year. Excluding this effect, America grew mid to high single digits. The underlying performance was strong, with double-digit growth in transportation and mobility, as well as industrial equipment, and even stronger momentum in the consumer industries. Now let's take a look at the performance of product lines. It was broad-based across regions, with strong contribution from home and lifestyle, as well as key deals in the energy sector. it was broad-based across regions with strong contribution from home and lifestyle as well as key deals in the energy sector This is a clear illustration of our diversification strategy at work, delivering impactful solutions across an expanding set of end markets. this is a clear illustration of our diversification strategy at work delivering impactful solutions across an expanding set of end markets Asia posted mixed performance, up 3%, with a slight decline in revenue in China, which was the primary headwind we faced. asia posted mixed performance up 3% with a slight decline in revenue in china which was the primary headwind we faced Outside of China, the business remained resilient across our geos, with Korea, Japan, and India all contributing meaningfully in core industries. outside of china the business remained resilient across our geos with korea japan and india all contributing meaningfully in core industries Americas was down 1%, reflecting the tough comparable from the Lockheed Martin contract expansion in Q1 of last year. americas was down 1% reflecting the tough comparable from the lockheed martin contract expansion in q1 of last year Excluding this effect, America grew mid to high single digits. excluding this effect america grew mid to high single digits The underlying performance was strong, with double-digit growth in transportation and mobility, as well as industrial equipment, and even stronger momentum in the consumer industries. the underlying performance was strong with double-digit growth in transportation and mobility as well as industrial equipment and even stronger momentum in the consumer industries Now let's take a look at the performance of product lines. now let's take a look at the performance of product lines Industrial innovation was flat in Q1, mainly due to the tough comparable, as mentioned before. Adjusted for this, industrial innovation was up mid-single digits, with the growth replicated across our core manufacturing brands such as DELMIA, SIMULIA, ENOVIA, and CATIA, and driven by good traction on subscriptions. For mainstream innovation, as you see, we had an outstanding quarter, up 14%. Centric delivered a particularly strong return to growth this quarter, driven by notable new client wins, including a significant competitive displacement, and broad momentum across strategic verticals such as food and beverage, retail, and sports apparel. This is a meaningful inflection point and a testament to the new leadership and the entire Centric team. Clients are validating the strengths and differentiation of our offer as they look to transform their business in a fast-moving consumer industry with AI at the center. Industrial innovation was flat in Q1, mainly due to the tough comparable, as mentioned before. industrial innovation was flat in q1 mainly due to the tough comparable as mentioned before Adjusted for this, industrial innovation was up mid-single digits, with the growth replicated across our core manufacturing brands such as DELMIA, SIMULIA, ENOVIA, and CATIA, and driven by good traction on subscriptions. adjusted for this industrial innovation was up mid-single digits with the growth replicated across our core manufacturing brands such as delmia simulia enovia and catia and driven by good traction on subscriptions For mainstream innovation, as you see, we had an outstanding quarter, up 14%. for mainstream innovation as you see we had an outstanding quarter up 14% Centric delivered a particularly strong return to growth this quarter, driven by notable new client wins, including a significant competitive displacement, and broad momentum across strategic verticals such as food and beverage, retail, and sports apparel. centric delivered a particularly strong return to growth this quarter driven by notable new client wins including a significant competitive displacement and broad momentum across strategic verticals such as food and beverage retail and sports apparel This is a meaningful inflection point and a testament to the new leadership and the entire Centric team. this is a meaningful inflection point and a testament to the new leadership and the entire centric team Clients are validating the strengths and differentiation of our offer as they look to transform their business in a fast-moving consumer industry with AI at the center. clients are validating the strengths and differentiation of our offer as they look to transform their business in a fast-moving consumer industry with ai at the center This performance supports our full-year outlook of mid to high teens growth for Centric, with Q2 mainstream growth expected to normalize sequentially from this quarter's level. Also, SOLIDWORKS momentum continued with high single-digit growth in revenue and double-digit growth in units. The performance was broad-based across geos, and it underscores our strong value proposition in the mainstream market, where short sales cycles and time to value are essential. Now to life sciences. As expected, Q1 was still negative as Medidata's business was mainly impacted by lower revenue contribution from partners. This reflects a carryover from lower 2025 bookings, while in the quarter we saw bookings, volumes, and value trending positive versus last year. This performance supports our full-year outlook of mid to high teens growth for Centric, with Q2 mainstream growth expected to normalize sequentially from this quarter's level. this performance supports our full-year outlook of mid to high teens growth for centric with q2 mainstream growth expected to normalize sequentially from this quarter's level Also, SOLIDWORKS momentum continued with high single-digit growth in revenue and double-digit growth in units. also solidworks momentum continued with high single-digit growth in revenue and double-digit growth in units The performance was broad-based across geos, and it underscores our strong value proposition in the mainstream market, where short sales cycles and time to value are essential. the performance was broad-based across geos and it underscores our strong value proposition in the mainstream market where short sales cycles and time to value are essential Now to life sciences. now to life sciences As expected, Q1 was still negative as Medidata's business was mainly impacted by lower revenue contribution from partners. as expected q1 was still negative as medidata's business was mainly impacted by lower revenue contribution from partners This reflects a carryover from lower 2025 bookings, while in the quarter we saw bookings, volumes, and value trending positive versus last year. this reflects a carryover from lower 2025 bookings while in the quarter we saw bookings volumes and value trending positive versus last year Also important to highlight, as Pascal mentioned, we signed a strategic multi-year partnership with Worldwide Clinical Trials, a leading CRO, standardizing clinical activity on Medidata's platform and leveraging AI across all workflows to speed up and simplify study build and execution. We see this as a first-of-a-kind deal. For 2026, we expect H2 to improve over H1, with the objective to reach a positive run rate growth entering 2027. Now turning to cash flow. Clearly a highlight of the quarter. We generated a strong EUR 949 million in operating cash flow in the quarter, up 17% and 22% excluding the currency impact. As anticipated, this was mainly driven by positive working capital dynamics over the quarter, as accounts receivable decreased sequentially, reflecting strong cash collections and a favorable impact from contract liabilities due to higher billing activity. Also important to highlight, as Pascal mentioned, we signed a strategic multi-year partnership with Worldwide Clinical Trials, a leading CRO, standardizing clinical activity on Medidata's platform and leveraging AI across all workflows to speed up and simplify study build and execution. also important to highlight as pascal mentioned we signed a strategic multi-year partnership with worldwide clinical trials a leading cro standardizing clinical activity on medidata's platform and leveraging ai across all workflows to speed up and simplify study build and execution We see this as a first-of-a-kind deal. we see this as a first-of-a-kind deal For 2026, we expect H2 to improve over H1, with the objective to reach a positive run rate growth entering 2027. for 2026 we expect h2 to improve over h1 with the objective to reach a positive run rate growth entering 2027 Now turning to cash flow. now turning to cash flow Clearly a highlight of the quarter. clearly a highlight of the quarter We generated a strong EUR 949 million in operating cash flow in the quarter, up 17% and 22% excluding the currency impact. As anticipated, this was mainly driven by positive working capital dynamics over the quarter, as accounts receivable decreased sequentially, reflecting strong cash collections and a favorable impact from contract liabilities due to higher billing activity. we generated a strong eur 949 million in operating cash flow in the quarter up 17% and 22% excluding the currency impact. as anticipated this was mainly driven by positive working capital dynamics over the quarter as accounts receivable decreased sequentially reflecting strong cash collections and a favorable impact from contract liabilities due to higher billing activity Free cash flow was up 27% in the quarter, driven by the strong operating cash flow. Cash conversion in the first quarter jumped to 208%, versus 167% in Q1 last year. Seasonally, we know Q1 is a strong cash collection quarter, but at the same time, the progressive transition of our business towards subscription and cloud creates an opportunity for continued improvement in cash conversion. To complete the picture, our overall cash and cash equivalents reached EUR 4.875 billion as of Q1, which is an increase of EUR 750 million versus Q1 2025. Looking at the investments in the quarter, it's also worth highlighting that we completed an acquisition of a startup to expand our cyber systems strategy with ALM capabilities, application lifecycle management. Combined with 3DEXPERIENCE, this acquisition offers a unique advantage for companies developing software-defined products. Free cash flow was up 27% in the quarter, driven by the strong operating cash flow. free cash flow was up 27% in the quarter driven by the strong operating cash flow Cash conversion in the first quarter jumped to 208%, versus 167% in Q1 last year. cash conversion in the first quarter jumped to 208% versus 167% in q1 last year Seasonally, we know Q1 is a strong cash collection quarter, but at the same time, the progressive transition of our business towards subscription and cloud creates an opportunity for continued improvement in cash conversion. seasonally we know q1 is a strong cash collection quarter but at the same time the progressive transition of our business towards subscription and cloud creates an opportunity for continued improvement in cash conversion To complete the picture, our overall cash and cash equivalents reached EUR 4.875 billion as of Q1, which is an increase of EUR 750 million versus Q1 2025. to complete the picture our overall cash and cash equivalents reached eur 4.875 billion as of q1 which is an increase of eur 750 million versus q1 2025 Looking at the investments in the quarter, it's also worth highlighting that we completed an acquisition of a startup to expand our cyber systems strategy with ALM capabilities, application lifecycle management. looking at the investments in the quarter it's also worth highlighting that we completed an acquisition of a startup to expand our cyber systems strategy with alm capabilities application lifecycle management Combined with 3DEXPERIENCE, this acquisition offers a unique advantage for companies developing software-defined products. combined with 3dexperience this acquisition offers a unique advantage for companies developing software-defined products We are excited to have a very talented team joining our cyber systems CATIA team. Our net cash position remains strong and stood at EUR 2.396 billion as of the end of Q1. To the outlook. We are confirming our full-year outlook for total revenue of EUR 6.29 billion-EUR 6.41 billion or 3%-5% growth ex FX, with an operating margin in the range of 32.2%-32.6%, and an EPS of EUR 130- EUR 134, representing 3%-6% growth ex FX. For Q2, we expect total revenue in the range of EUR 1.518 billion-EUR 1.568 billion up 2%-5% ex FX. Software and service revenues are expected to grow in line with total revenue by 2%-5%. We target an operating margin between 29.5%-29.9%, an EPS of EUR 0.29-EUR 0.31, growing in a range of 3%-7%, excluding currency. We are excited to have a very talented team joining our cyber systems CATIA team. we are excited to have a very talented team joining our cyber systems catia team Our net cash position remains strong and stood at EUR 2.396 billion as of the end of Q1. our net cash position remains strong and stood at eur 2.396 billion as of the end of q1 To the outlook. to the outlook We are confirming our full-year outlook for total revenue of EUR 6.29 billion -EUR 6.41 billion or 3%-5% growth ex FX, with an operating margin in the range of 32.2%-32.6%, and an EPS of EUR 130- EUR 134, representing 3%-6% growth ex FX. we are confirming our full-year outlook for total revenue of eur 6.29 billion -eur 6.41 billion or 3%-5% growth ex fx with an operating margin in the range of 32.2%-32.6% and an eps of eur 130- eur 134 representing 3%-6% growth ex fx For Q2, we expect total revenue in the range of EUR 1.518 billion -EUR 1.568 billion up 2%-5% ex FX. for q2 we expect total revenue in the range of eur 1.518 billion -eur 1.568 billion up 2%-5% ex fx Software and service revenues are expected to grow in line with total revenue by 2%-5%. software and service revenues are expected to grow in line with total revenue by 2%-5% We target an operating margin between 29.5%-29.9%, an EPS of EUR 0.29-EUR 0.31, growing in a range of 3%-7%, excluding currency. we target an operating margin between 29.5%-29.9% an eps of eur 0.29-eur 0.31 growing in a range of 3%-7% excluding currency This is all based on our FX assumptions for an average rate for the year of dollar to euro of 1.18 and yen to euro of 173.37. To conclude, we had a solid start to the year. We delivered performance at objectives and confirm our full-year guidance. Our growth drivers demonstrate that our strategy is working, providing the tailwinds for future growth. Focus on execution and operating discipline drove solid margin and strong cash conversion. This provides the foundation to invest in our long-term growth and accelerate our AI strategy to deliver tangible value for our clients, employees, and of course, to our shareholders. Now, Pascal and I look forward to take your questions. This is all based on our FX assumptions for an average rate for the year of dollar to euro of 1.18 and yen to euro of 173.37. this is all based on our fx assumptions for an average rate for the year of dollar to euro of 1.18 and yen to euro of 173.37 To conclude, we had a solid start to the year. to conclude we had a solid start to the year We delivered performance at objectives and confirm our full-year guidance. we delivered performance at objectives and confirm our full-year guidance Our growth drivers demonstrate that our strategy is working, providing the tailwinds for future growth. our growth drivers demonstrate that our strategy is working providing the tailwinds for future growth Focus on execution and operating discipline drove solid margin and strong cash conversion. focus on execution and operating discipline drove solid margin and strong cash conversion This provides the foundation to invest in our long-term growth and accelerate our AI strategy to deliver tangible value for our clients, employees, and of course, to our shareholders. this provides the foundation to invest in our long-term growth and accelerate our ai strategy to deliver tangible value for our clients employees and of course to our shareholders Now, Pascal and I look forward to take your questions. now pascal and i look forward to take your questions

Speaker 4: I'm going to start with the room. I'm going to start with the room. i'm going to start with the room

Speaker 9: Can you hear me okay? Can you hear me okay? can you hear me okay

Speaker 4: I think they will give you a mic. I think they will give you a mic. i think they will give you a mic

Speaker 8: Online we will too as well. Online we will too as well. online we will too as well

Speaker 4: We'll do the online questions later on. We'll do the online questions later on. we'll do the online questions later on

Speaker 9: Thank you, Pascal, Rouven. Two from me. First of all, obviously, there's been a slight improvement of growth relative to where we were in kind of Q4. The guidance calls for kind of this gradual acceleration as we move through the year. Can you just help us better understand, again, the building blocks by the different business segments, and in particular, around the pathway for recurring revenue, given that's still at a fairly depressed level. In terms of what is sort of driving this, and linked to that, is obviously ARR has been fairly steady at 6%. How should we think about the link of, or the required run rate in ARR to kind of underpin this revenue growth? Second question, you talked about AI being more complementary and kind of growing the base. Thank you, Pascal, Rouven. thank you pascal rouven Two from me. two from me First of all, obviously, there's been a slight improvement of growth relative to where we were in kind of Q4. first of all obviously there's been a slight improvement of growth relative to where we were in kind of q4 The guidance calls for kind of this gradual acceleration as we move through the year. the guidance calls for kind of this gradual acceleration as we move through the year Can you just help us better understand, again, the building blocks by the different business segments, and in particular, around the pathway for recurring revenue, given that's still at a fairly depressed level. can you just help us better understand again the building blocks by the different business segments and in particular around the pathway for recurring revenue given that's still at a fairly depressed level In terms of what is sort of driving this, and linked to that, is obviously ARR has been fairly steady at 6%. in terms of what is sort of driving this and linked to that is obviously arr has been fairly steady at 6% How should we think about the link of, or the required run rate in ARR to kind of underpin this revenue growth? how should we think about the link of or the required run rate in arr to kind of underpin this revenue growth Second question, you talked about AI being more complementary and kind of growing the base. second question you talked about ai being more complementary and kind of growing the base How should we think about, also, the further the evolution of the model of the medium to long term, particularly as we move to kind of consumption and outcome-based? I know your goal is to move to more subscription-based, but how much volatility could this potentially bring? Or how do you think about pricing some of your product? Because the feedback we hear is budgeting can also be very difficult for customers, right, with this unpredictability. So just curious to get a sense from your perspective what this means and how does that evolve your model. Thank you. How should we think about, also, the further the evolution of the model of the medium to long term, particularly as we move to kind of consumption and outcome-based? how should we think about also the further the evolution of the model of the medium to long term particularly as we move to kind of consumption and outcome-based I know your goal is to move to more subscription-based, but how much volatility could this potentially bring? i know your goal is to move to more subscription-based but how much volatility could this potentially bring Or how do you think about pricing some of your product? or how do you think about pricing some of your product Because the feedback we hear is budgeting can also be very difficult for customers, right, with this unpredictability. because the feedback we hear is budgeting can also be very difficult for customers right with this unpredictability So just curious to get a sense from your perspective what this means and how does that evolve your model. so just curious to get a sense from your perspective what this means and how does that evolve your model Thank you. thank you

Speaker 7: Take the first one. Take the first one. take the first one

Speaker 8: Yes, happy to. Thank you, Mo, for kicking us off in this Q&A session. First, to the building blocks of the guidance. It has not changed entering into the year. Let's be clear. Q1 is a solid start to the year, as we said. It's categorized by strong momentum, as you see, in mainstream innovation, with strong performance of SOLIDWORKS, which was very broad-based. As I mentioned in my prepared remarks, it's a time where sales cycles are very short and time to value needs to be delivered quickly. I think SOLIDWORKS is fitting very good into this mode. From an enterprise standpoint, we signed large deals, more and more cloud-based. You don't see them yet in revenue, but they are reflected in ARR. UK Fusion is one, but Eaton was also cloud. The big Medidata deal is cloud. Yes, happy to. yes happy to Thank you, Mo, for kicking us off in this Q&A session. thank you mo for kicking us off in this q&a session First, to the building blocks of the guidance. first to the building blocks of the guidance It has not changed entering into the year. it has not changed entering into the year Let's be clear. let's be clear Q1 is a solid start to the year, as we said. q1 is a solid start to the year as we said It's categorized by strong momentum, as you see, in mainstream innovation, with strong performance of SOLIDWORKS, which was very broad-based. it's categorized by strong momentum as you see in mainstream innovation with strong performance of solidworks which was very broad-based As I mentioned in my prepared remarks, it's a time where sales cycles are very short and time to value needs to be delivered quickly. as i mentioned in my prepared remarks it's a time where sales cycles are very short and time to value needs to be delivered quickly I think SOLIDWORKS is fitting very good into this mode. From an enterprise standpoint, we signed large deals, more and more cloud-based. i think solidworks is fitting very good into this mode. from an enterprise standpoint we signed large deals more and more cloud-based You don't see them yet in revenue, but they are reflected in ARR. you don't see them yet in revenue but they are reflected in arr UK Fusion is one, but Eaton was also cloud. uk fusion is one but eaton was also cloud The big Medidata deal is cloud. the big medidata deal is cloud It's not in revenue, it's in backlog. We're really step-by-step, really driving the execution towards the new business model. Nevertheless, we delivered the revenue as expected at 3%. We had a tough comparison coming into the quarter with a landmark deal of Q1 last year, which created a bit of a bump to achieve coming into the year. We did that. We talked about Centric. Centric is definitely a contributor to growth when we compare it to 2025, where we had a lot of headwind. In the consumer-centric industries, we see a very strong start to the year. I want to be also clear that Q2 will be more in line with our full year model. It's not in revenue, it's in backlog. it's not in revenue it's in backlog We're really step-by-step, really driving the execution towards the new business model. we're really step-by-step really driving the execution towards the new business model Nevertheless, we delivered the revenue as expected at 3%. nevertheless we delivered the revenue as expected at 3% We had a tough comparison coming into the quarter with a landmark deal of Q1 last year, which created a bit of a bump to achieve coming into the year. we had a tough comparison coming into the quarter with a landmark deal of q1 last year which created a bit of a bump to achieve coming into the year We did that. we did that We talked about Centric. we talked about centric Centric is definitely a contributor to growth when we compare it to 2025, where we had a lot of headwind. centric is definitely a contributor to growth when we compare it to 2025 where we had a lot of headwind In the consumer-centric industries, we see a very strong start to the year. in the consumer-centric industries we see a very strong start to the year I want to be also clear that Q2 will be more in line with our full year model. i want to be also clear that q2 will be more in line with our full year model We are going to see a bit of an effect where Q2 and Q1 will balance off to a good start in H1, but it's not like what it was in Q1. Medidata is as expected in our guidance. We have a lower contribution or negative contribution in the first six months, and we expect to see a break-even as we enter into H2. The bookings momentum of the first quarter are supporting that thesis. Q2 execution will be important to continue to go this path, but I think WCT is a deal. I said first of a kind because here we are transforming the first year ROI from a time and material and study by study model into a platform model in AI. That's very exciting. It really is a demonstration of the strategy that has been laid out at Next. Now to ARR. We are going to see a bit of an effect where Q2 and Q1 will balance off to a good start in H1, but it's not like what it was in Q1. we are going to see a bit of an effect where q2 and q1 will balance off to a good start in h1 but it's not like what it was in q1 Medidata is as expected in our guidance. medidata is as expected in our guidance We have a lower contribution or negative contribution in the first six months, and we expect to see a break-even as we enter into H2. we have a lower contribution or negative contribution in the first six months and we expect to see a break-even as we enter into h2 The bookings momentum of the first quarter are supporting that thesis. the bookings momentum of the first quarter are supporting that thesis Q2 execution will be important to continue to go this path, but I think WCT is a deal. q2 execution will be important to continue to go this path but i think wct is a deal I said first of a kind because here we are transforming the first year ROI from a time and material and study by study model into a platform model in AI. i said first of a kind because here we are transforming the first year roi from a time and material and study by study model into a platform model in ai That's very exciting. that's very exciting It really is a demonstration of the strategy that has been laid out at Next. it really is a demonstration of the strategy that has been laid out at next Now to ARR. now to arr What's important to keep in mind with ARR, and it's in line with where we are going. ARR is a forward-looking metric. We are looking at the next 12 months run rate of the deals that we are closing. While we know that in revenue recognition, according to the standards, we have to recognize revenue upfront, and we cannot present it in a 12 months run rate ratably. It's mainly true for all the multi-year subscription deals that we are signing. That's also why we have that revenue mix fluctuation with a higher upfront license portion in the first quarter, which is a result of large multi-year subscriptions or a number of larger multi-year subscriptions that we have signed in the first quarter, which we saw in the upfront license, but not in subscription, according to our conventions and policies. What's important to keep in mind with ARR, and it's in line with where we are going. what's important to keep in mind with arr and it's in line with where we are going ARR is a forward-looking metric. arr is a forward-looking metric We are looking at the next 12 months run rate of the deals that we are closing. we are looking at the next 12 months run rate of the deals that we are closing While we know that in revenue recognition, according to the standards, we have to recognize revenue upfront, and we cannot present it in a 12 months run rate ratably. while we know that in revenue recognition according to the standards we have to recognize revenue upfront and we cannot present it in a 12 months run rate ratably It's mainly true for all the multi-year subscription deals that we are signing. it's mainly true for all the multi-year subscription deals that we are signing That's also why we have that revenue mix fluctuation with a higher upfront license portion in the first quarter, which is a result of large multi-year subscriptions or a number of larger multi-year subscriptions that we have signed in the first quarter, which we saw in the upfront license, but not in subscription, according to our conventions and policies. that's also why we have that revenue mix fluctuation with a higher upfront license portion in the first quarter which is a result of large multi-year subscriptions or a number of larger multi-year subscriptions that we have signed in the first quarter which we saw in the upfront license but not in subscription according to our conventions and policies The ARR shows the normalized trend on a 12-month basis going forward. That is really the underlying strengths and the acceleration that we anticipate. The ARR is consistent 6%. EUR 35 million sequential growth coming out of Q4, adding to the ARR basis, which is much more than what we did in Q1 last year. We are adding more subscription deals that build the ARR, and we expect the ARR also to grow from there. In fact, subscription ARR was up low teens, while the maintenance ARR was more flattish. We are going to reach this parity of subscription ARR exceeding maintenance ARR probably sooner than what we have modeled, and it will be an inflection point. The ARR shows the normalized trend on a 12-month basis going forward. the arr shows the normalized trend on a 12-month basis going forward That is really the underlying strengths and the acceleration that we anticipate. that is really the underlying strengths and the acceleration that we anticipate The ARR is consistent 6%. the arr is consistent 6% EUR 35 million sequential growth coming out of Q4, adding to the ARR basis, which is much more than what we did in Q1 last year. eur 35 million sequential growth coming out of q4 adding to the arr basis which is much more than what we did in q1 last year We are adding more subscription deals that build the ARR, and we expect the ARR also to grow from there. we are adding more subscription deals that build the arr and we expect the arr also to grow from there In fact, subscription ARR was up low teens, while the maintenance ARR was more flattish. in fact subscription arr was up low teens while the maintenance arr was more flattish We are going to reach this parity of subscription ARR exceeding maintenance ARR probably sooner than what we have modeled, and it will be an inflection point. we are going to reach this parity of subscription arr exceeding maintenance arr probably sooner than what we have modeled and it will be an inflection point

Speaker 7: Relating to the second part of your question, Mo, it's a very important question. I could give some example just to materialize this discussion. I remember a year ago discussing with the CIO of Ford, and he was pissed off by some software vendors basically forcing their AI usage as part of the subscriptions, and at the end, he was exactly telling me what you say, it's becoming unpredictable for them. Based on this, what did we do? In fact, remember, the category of new products, new solution we are developing are not replacing the existing one. The role and the process portfolio are still there, and they will stay. Why I'm saying this is because if you are a customer, you have a choice to use a role and a process and to put people to use them. Relating to the second part of your question, Mo, it's a very important question. relating to the second part of your question mo it's a very important question I could give some example just to materialize this discussion. i could give some example just to materialize this discussion I remember a year ago discussing with the CIO of Ford, and he was pissed off by some software vendors basically forcing their AI usage as part of the subscriptions, and at the end, he was exactly telling me what you say, it's becoming unpredictable for them. i remember a year ago discussing with the cio of ford and he was pissed off by some software vendors basically forcing their ai usage as part of the subscriptions and at the end he was exactly telling me what you say it's becoming unpredictable for them Based on this, what did we do? based on this what did we do In fact, remember, the category of new products, new solution we are developing are not replacing the existing one. in fact remember the category of new products new solution we are developing are not replacing the existing one The role and the process portfolio are still there, and they will stay. the role and the process portfolio are still there and they will stay Why I'm saying this is because if you are a customer, you have a choice to use a role and a process and to put people to use them. why i'm saying this is because if you are a customer you have a choice to use a role and a process and to put people to use them Or you could decide to use Virtual Companions and Generative Experiences. Point number one, I'm giving them the choice. The second thing is, what do we price? With Virtual Companion, we are pricing the reasoning. If you are a mechanical engineer, if you are a scientist, your reasoning is not the same. That's basically the way to materialize it, we are developing what we call unit of knowledge and unit of know-how, which is basically a token having a certain value. The more sophisticated is your reasoning, the more we charge. From a packaging standpoint, obviously, the Companion will be delivered with a set of tokens. We will give the flexibility to consume more tokens and also to put limits if they are reaching the limits. That's the idea. The Generative Experience is very different, when you want to automate certain things. Right. Or you could decide to use Virtual Companions and Generative Experiences. or you could decide to use virtual companions and generative experiences Point number one, I'm giving them the choice. point number one i'm giving them the choice The second thing is, what do we price? the second thing is what do we price With Virtual Companion, we are pricing the reasoning. with virtual companion we are pricing the reasoning If you are a mechanical engineer, if you are a scientist, your reasoning is not the same. if you are a mechanical engineer if you are a scientist your reasoning is not the same That's basically the way to materialize it, we are developing what we call unit of knowledge and unit of know-how, which is basically a token having a certain value. that's basically the way to materialize it we are developing what we call unit of knowledge and unit of know-how which is basically a token having a certain value The more sophisticated is your reasoning, the more we charge. the more sophisticated is your reasoning the more we charge From a packaging standpoint, obviously, the Companion will be delivered with a set of tokens. from a packaging standpoint obviously the companion will be delivered with a set of tokens We will give the flexibility to consume more tokens and also to put limits if they are reaching the limits. we will give the flexibility to consume more tokens and also to put limits if they are reaching the limits That's the idea. that's the idea The Generative Experience is very different, when you want to automate certain things. Right. the generative experience is very different when you want to automate certain things. right Here, what we are pricing is a unit of work. It's not the unit of knowledge or the know-how, it's really the unit of work. Same thing, we have a currency, which is a token. We put a price, and depending how much processes you want to optimize, we basically package it with a bunch of tokens. Same thing, we are giving some flexibility on top of it. The last approach is, you remember when we do the virtual twin as a service, meaning rather than to sell the tools, the Virtual Companions, or to automatize the work, we do the work on behalf of our customers. In this case, what we are pricing is the outcome. This is the way. It's very robust. Here, what we are pricing is a unit of work. here what we are pricing is a unit of work It's not the unit of knowledge or the know-how, it's really the unit of work. it's not the unit of knowledge or the know-how it's really the unit of work Same thing, we have a currency, which is a token. same thing we have a currency which is a token We put a price, and depending how much processes you want to optimize, we basically package it with a bunch of tokens. we put a price and depending how much processes you want to optimize we basically package it with a bunch of tokens Same thing, we are giving some flexibility on top of it. same thing we are giving some flexibility on top of it The last approach is, you remember when we do the virtual twin as a service, meaning rather than to sell the tools, the Virtual Companions, or to automatize the work, we do the work on behalf of our customers. the last approach is you remember when we do the virtual twin as a service meaning rather than to sell the tools the virtual companions or to automatize the work we do the work on behalf of our customers In this case, what we are pricing is the outcome. in this case what we are pricing is the outcome This is the way. this is the way It's very robust. it's very robust I think you heard me in my introduction saying that really our customers, they are moving from experimentations and pilot to now in production, and they start to ask the right questions. This one is one of them. Obviously, I think the choice we made 3 years or 4 years ago are the right one. Thank you. I think you heard me in my introduction saying that really our customers, they are moving from experimentations and pilot to now in production, and they start to ask the right questions. i think you heard me in my introduction saying that really our customers they are moving from experimentations and pilot to now in production and they start to ask the right questions This one is one of them. this one is one of them Obviously, I think the choice we made 3 years or 4 years ago are the right one. obviously i think the choice we made 3 years or 4 years ago are the right one Thank you. thank you

Speaker 9: Thank you. Thank you. thank you

Speaker 7: Okay. We can go to Frederic, yeah. If you have the microphone already, it's okay. Okay. okay We can go to Frederic, yeah. we can go to frederic yeah If you have the microphone already, it's okay. if you have the microphone already it's okay

Speaker 4: Frederic Boulan from Bank of America. Frederic Boulan from Bank of America. frederic boulan from bank of america

Speaker 1: Thank you. Fred Boulan at Bank of America. Two questions, please. Firstly, on the kind of current macro, can you specify if you're seeing any specific impact on demand, in particular around the auto industry where we've seen some restructuring at some of the OEMs, in particular Renault. Secondly, to follow up on the GenAI discussion, are you seeing some clients rethinking how they approach software build versus buy approach using some LLMs themselves, re-internalizing processes, or emerging competition from GenAI startups? We've seen project primitives out there emerging. We're keen to see if you're seeing any changes in terms of customer behavior on that. Thank you. Thank you. thank you Fred Boulan at Bank of America. fred boulan at bank of america Two questions, please. two questions please Firstly, on the kind of current macro, can you specify if you're seeing any specific impact on demand, in particular around the auto industry where we've seen some restructuring at some of the OEMs, in particular Renault. firstly on the kind of current macro can you specify if you're seeing any specific impact on demand in particular around the auto industry where we've seen some restructuring at some of the oems in particular renault Secondly, to follow up on the GenAI discussion, are you seeing some clients rethinking how they approach software build versus buy approach using some LLMs themselves, re-internalizing processes, or emerging competition from GenAI startups? secondly to follow up on the genai discussion are you seeing some clients rethinking how they approach software build versus buy approach using some llms themselves re-internalizing processes or emerging competition from genai startups We've seen project primitives out there emerging. we've seen project primitives out there emerging We're keen to see if you're seeing any changes in terms of customer behavior on that. we're keen to see if you're seeing any changes in terms of customer behavior on that Thank you. thank you

Speaker 7: Same thing, you take the first one, I take the second one. Same thing, you take the first one, I take the second one. same thing you take the first one i take the second one

Speaker 8: Yes. Happy to. Thank you. On the macro part, yes, of course, we are not immune to any macro changes. However, I think we reflected coming into the year that the auto sector could be a weak spot for us in 2026. To this, there's no incremental update. For sure, European auto sector is going through a tough transformation. We know that this also creates opportunities for us, but the timing of closing of those deals could, as a result, vary and be less predictable. We know that by experience. We have dealt with this, but we have been carefully reflecting that in our outlook. I don't have any incremental things to flag to you. Yes. yes Happy to. happy to Thank you. thank you On the macro part, yes, of course, we are not immune to any macro changes. on the macro part yes of course we are not immune to any macro changes However, I think we reflected coming into the year that the auto sector could be a weak spot for us in 2026. however i think we reflected coming into the year that the auto sector could be a weak spot for us in 2026 To this, there's no incremental update. to this there's no incremental update For sure, European auto sector is going through a tough transformation. for sure european auto sector is going through a tough transformation We know that this also creates opportunities for us, but the timing of closing of those deals could, as a result, vary and be less predictable. we know that this also creates opportunities for us but the timing of closing of those deals could as a result vary and be less predictable We know that by experience. we know that by experience We have dealt with this, but we have been carefully reflecting that in our outlook. we have dealt with this but we have been carefully reflecting that in our outlook I don't have any incremental things to flag to you. i don't have any incremental things to flag to you Maybe to give you a piece of how have we managed that in Q1, you see the numbers in Europe were very good despite the challenges that we were facing with some European auto. I can refer to some deals in Europe that we wanted to close, but we didn't. Nevertheless, we ended quite strong in Europe. Those transactions, we continue to work, and they will materialize throughout the year. We're confident about this, but not in Q1, as we know. That was compensated with very good performance in consumer-centric industries. That's the way we need to manage this, that we have a broad portfolio, and the diversification strategy is paying its dividends. The auto sector in North America was healthy. We had a good deal with Ford. In Asia, it's the same. We signed with BYD. It's broad-based. Maybe to give you a piece of how have we managed that in Q1, you see the numbers in Europe were very good despite the challenges that we were facing with some European auto. maybe to give you a piece of how have we managed that in q1 you see the numbers in europe were very good despite the challenges that we were facing with some european auto I can refer to some deals in Europe that we wanted to close, but we didn't. i can refer to some deals in europe that we wanted to close but we didn't Nevertheless, we ended quite strong in Europe. nevertheless we ended quite strong in europe Those transactions, we continue to work, and they will materialize throughout the year. those transactions we continue to work and they will materialize throughout the year We're confident about this, but not in Q1, as we know. we're confident about this but not in q1 as we know That was compensated with very good performance in consumer-centric industries. that was compensated with very good performance in consumer-centric industries That's the way we need to manage this, that we have a broad portfolio, and the diversification strategy is paying its dividends. that's the way we need to manage this that we have a broad portfolio and the diversification strategy is paying its dividends The auto sector in North America was healthy. the auto sector in north america was healthy We had a good deal with Ford. we had a good deal with ford In Asia, it's the same. in asia it's the same We signed with BYD. we signed with byd It's broad-based. it's broad-based The auto sector continues to play an important role, and we are well set up on a global basis. The auto sector continues to play an important role, and we are well set up on a global basis. the auto sector continues to play an important role and we are well set up on a global basis

Speaker 7: Maybe one specific comment on Renault, because you mentioned them. For those who have not seen the CEO announce his strategic plan a few weeks ago. As part of it is reducing significantly the engineering capacity. Automatically, the question probably you are asking yourself, does it impact the number of licenses we have within Renault? The answer is no. Why so? Because, again, we are expanding, in fact, the usage of what we do. The second one is they need to do more with less people. This is what is really opening the door for the virtual companion and generative experience I was speaking about. That's really how we are handling this. Now, the second part of your question, also very interesting. What is happening with GenAI? Maybe one specific comment on Renault, because you mentioned them. maybe one specific comment on renault because you mentioned them For those who have not seen the CEO announce his strategic plan a few weeks ago. for those who have not seen the ceo announce his strategic plan a few weeks ago As part of it is reducing significantly the engineering capacity. as part of it is reducing significantly the engineering capacity Automatically, the question probably you are asking yourself, does it impact the number of licenses we have within Renault? automatically the question probably you are asking yourself does it impact the number of licenses we have within renault The answer is no. the answer is no Why so? why so Because, again, we are expanding, in fact, the usage of what we do. because again we are expanding in fact the usage of what we do The second one is they need to do more with less people. the second one is they need to do more with less people This is what is really opening the door for the virtual companion and generative experience I was speaking about. this is what is really opening the door for the virtual companion and generative experience i was speaking about That's really how we are handling this. that's really how we are handling this Now, the second part of your question, also very interesting. now the second part of your question also very interesting What is happening with GenAI? what is happening with genai On one hand, the temptation for certain customers to develop themselves certain things, and ability for newcomers to come and to change, basically, the landscape. Let's speak about the first one. Point number one, I met a lot of customers, and it was really the starting point of my discussions. What do you want to do with GenAI? How far you want to go, especially in our space. All of them are telling me, "Pascal, the GenAI story is not a story to disrupt the PLM, the CAD, the simulations market." Why so? Because the level of science, the level of physics, the level of knowledge you should put into the system, is such that it's a huge barrier to entry. We have other things which are much more easy to replace with generative AI. That's point number one. On one hand, the temptation for certain customers to develop themselves certain things, and ability for newcomers to come and to change, basically, the landscape. on one hand the temptation for certain customers to develop themselves certain things and ability for newcomers to come and to change basically the landscape Let's speak about the first one. let's speak about the first one Point number one, I met a lot of customers, and it was really the starting point of my discussions. point number one i met a lot of customers and it was really the starting point of my discussions What do you want to do with GenAI? what do you want to do with genai How far you want to go, especially in our space. how far you want to go especially in our space All of them are telling me, "Pascal, the GenAI story is not a story to disrupt the PLM, the CAD, the simulations market." Why so? all of them are telling me "pascal the genai story is not a story to disrupt the plm the cad the simulations market." why so Because the level of science, the level of physics, the level of knowledge you should put into the system, is such that it's a huge barrier to entry. because the level of science the level of physics the level of knowledge you should put into the system is such that it's a huge barrier to entry We have other things which are much more easy to replace with generative AI. we have other things which are much more easy to replace with generative ai That's point number one. that's point number one Point number two, they say most of the AI systems right now are based on the text. Large language model. It's written into the name. It's a language model. What we are manipulating is not language, it's biology, it's physics. There are a lot of limitations of what you can do with the current LLM. Nevertheless, there is some connection we can do, and we see more and more customers willing to develop their agentic platform. The way to answer to this is very simple. You have seen in the architecture, we have our own agentic platform, and we are relying on the protocol called MCP, which is allowing agent-to-agent collaboration. The way we are making it possible, we do not get access to agents to our systems. Point number two, they say most of the AI systems right now are based on the text. point number two they say most of the ai systems right now are based on the text Large language model. large language model It's written into the name. it's written into the name It's a language model. it's a language model What we are manipulating is not language, it's biology, it's physics. what we are manipulating is not language it's biology it's physics There are a lot of limitations of what you can do with the current LLM. there are a lot of limitations of what you can do with the current llm Nevertheless, there is some connection we can do, and we see more and more customers willing to develop their agentic platform. nevertheless there is some connection we can do and we see more and more customers willing to develop their agentic platform The way to answer to this is very simple. the way to answer to this is very simple You have seen in the architecture, we have our own agentic platform, and we are relying on the protocol called MCP, which is allowing agent-to-agent collaboration. you have seen in the architecture we have our own agentic platform and we are relying on the protocol called mcp which is allowing agent-to-agent collaboration The way we are making it possible, we do not get access to agents to our systems. the way we are making it possible we do not get access to agents to our systems We say, "If you want to have an agent, for example, for the customer support, we need to get access to the deep information you have in the PLM systems." It has to go through Leo, which is one of our agents. To make it happen, we have this protocol in place which is simplifying the life. That's point number one. Related to startups or newcomers, yes, we have some. I would say, especially in the simulation domain, where we see people coming with what they call the surrogate approach, which is a way to approximate basically the physics. There are few things you should keep in mind. It has been a long time that the core value of what we do is how we are integrating the different pieces together, and specifically for the simulation, how we do the multi-physics. We say, "If you want to have an agent, for example, for the customer support, we need to get access to the deep information you have in the PLM systems." It has to go through Leo, which is one of our agents. we say "if you want to have an agent for example for the customer support we need to get access to the deep information you have in the plm systems." it has to go through leo which is one of our agents To make it happen, we have this protocol in place which is simplifying the life. to make it happen we have this protocol in place which is simplifying the life That's point number one. that's point number one Related to startups or newcomers, yes, we have some. related to startups or newcomers yes we have some I would say, especially in the simulation domain, where we see people coming with what they call the surrogate approach, which is a way to approximate basically the physics. i would say especially in the simulation domain where we see people coming with what they call the surrogate approach which is a way to approximate basically the physics There are few things you should keep in mind. there are few things you should keep in mind It has been a long time that the core value of what we do is how we are integrating the different pieces together, and specifically for the simulation, how we do the multi-physics. it has been a long time that the core value of what we do is how we are integrating the different pieces together and specifically for the simulation how we do the multi-physics Right now, what you can do, you can maybe approximate some mechanical behavior. You can do the same for the thermodynamics. If you have to connect and to bundle the two in order to find the right trade-off, this is a very difficult thing to do. That's point number one. Point number two, at the end, the simulation is more and more guiding the modeling. You need another level of integration between the modelers, the core CAD capabilities, if you want, and the simulation space. Again, this is also where we are making a big difference because it's native in our case. I have met many, many customers, especially in the auto sector, where they are working with some startups. What I was saying in my introductory comment, now it's time for them to not anymore do proof of concept. Right now, what you can do, you can maybe approximate some mechanical behavior. right now what you can do you can maybe approximate some mechanical behavior You can do the same for the thermodynamics. you can do the same for the thermodynamics If you have to connect and to bundle the two in order to find the right trade-off, this is a very difficult thing to do. if you have to connect and to bundle the two in order to find the right trade-off this is a very difficult thing to do That's point number one. that's point number one Point number two, at the end, the simulation is more and more guiding the modeling. point number two at the end the simulation is more and more guiding the modeling You need another level of integration between the modelers, the core CAD capabilities, if you want, and the simulation space. you need another level of integration between the modelers the core cad capabilities if you want and the simulation space Again, this is also where we are making a big difference because it's native in our case. again this is also where we are making a big difference because it's native in our case I have met many, many customers, especially in the auto sector, where they are working with some startups. i have met many many customers especially in the auto sector where they are working with some startups What I was saying in my introductory comment, now it's time for them to not anymore do proof of concept. what i was saying in my introductory comment now it's time for them to not anymore do proof of concept They want to deploy it at scale on the real use cases. They come back to us and say, "Pascal, could you please help me either to develop an equivalent or to integrate what they do?" Because otherwise it will be isolated and it's not industrial. This is where we are, and that's the reason why I think I'm pretty confident about our way to move forward and also to create a new type of ecosystem, if you want. Because at the end, you remember, we have more applications developed by third party on top of the platform than we have developed ourself. There is no reason not to do the same with the AI as well. They want to deploy it at scale on the real use cases. they want to deploy it at scale on the real use cases They come back to us and say, "Pascal, could you please help me either to develop an equivalent or to integrate what they do?" Because otherwise it will be isolated and it's not industrial. they come back to us and say "pascal could you please help me either to develop an equivalent or to integrate what they do?" because otherwise it will be isolated and it's not industrial This is where we are, and that's the reason why I think I'm pretty confident about our way to move forward and also to create a new type of ecosystem, if you want. this is where we are and that's the reason why i think i'm pretty confident about our way to move forward and also to create a new type of ecosystem if you want Because at the end, you remember, we have more applications developed by third party on top of the platform than we have developed ourself. because at the end you remember we have more applications developed by third party on top of the platform than we have developed ourself There is no reason not to do the same with the AI as well. there is no reason not to do the same with the ai as well

Speaker 2: Hey, Pascal. Hey, Rouven. It's George Webb from Morgan Stanley. A couple of questions, maybe just continuing on this theme of AI. You've talked about this shift of enterprises now looking to engage to deploy industrial AI at scale in 2026, moving outside of that experimentation phase. I guess the CIOs and decision makers that many of your customers are excited by what AI can unlock, but they're also grappling with that very high pace of change and trying to work out what the right decision pathway is. As much as 3DEXPERIENCE might be that right decision pathway, are you feeling any hesitancy in your customer base to commit to larger 3DEXPERIENCE transformations? How can you kind of adjust your sales motion to get customers comfortable with that? Hey, Pascal. hey pascal Hey, Rouven. hey rouven It's George Webb from Morgan Stanley. it's george webb from morgan stanley A couple of questions, maybe just continuing on this theme of AI. a couple of questions maybe just continuing on this theme of ai You've talked about this shift of enterprises now looking to engage to deploy industrial AI at scale in 2026, moving outside of that experimentation phase. you've talked about this shift of enterprises now looking to engage to deploy industrial ai at scale in 2026 moving outside of that experimentation phase I guess the CIOs and decision makers that many of your customers are excited by what AI can unlock, but they're also grappling with that very high pace of change and trying to work out what the right decision pathway is. i guess the cios and decision makers that many of your customers are excited by what ai can unlock but they're also grappling with that very high pace of change and trying to work out what the right decision pathway is As much as 3DEXPERIENCE might be that right decision pathway, are you feeling any hesitancy in your customer base to commit to larger 3DEXPERIENCE transformations? as much as 3dexperience might be that right decision pathway are you feeling any hesitancy in your customer base to commit to larger 3dexperience transformations How can you kind of adjust your sales motion to get customers comfortable with that? how can you kind of adjust your sales motion to get customers comfortable with that Maybe one on the Medidata side, still obviously running down 3% year-over-year, perhaps reflecting some of those booking trends from last year. You talked to bookings perhaps starting off in 2026 on a better footing. Could you add any color on the magnitude of that better footing? Ultimately, how confident are you that Medidata now is on a sustainably better track going forward? Thank you. Maybe one on the Medidata side, still obviously running down 3% year-over-year, perhaps reflecting some of those booking trends from last year. maybe one on the medidata side still obviously running down 3% year-over-year perhaps reflecting some of those booking trends from last year You talked to bookings perhaps starting off in 2026 on a better footing. you talked to bookings perhaps starting off in 2026 on a better footing Could you add any color on the magnitude of that better footing? could you add any color on the magnitude of that better footing Ultimately, how confident are you that Medidata now is on a sustainably better track going forward? ultimately how confident are you that medidata now is on a sustainably better track going forward Thank you. thank you

Speaker 7: So- So- so-

Speaker 8: Reverse order this time, Pascal. Reverse order this time, Pascal. reverse order this time pascal

Speaker 7: Yeah. Again, it's a very good question. What we discover, this AI and GenAI story is in fact helping the platform. Why? Because if you look at the way most of the customers they do, any way they have to unify their systems in order to create the proper data set to train their AI engines. In our space, creating high quality data set cost a lot. With the platform, it's built in. For a long time, they were seeing the platform as a way to connect the different domain together and in a way to create the collaborations within the company and within the ecosystem, the supply. Now they see also the platform as a foundations, basically to be, at least in our space, for the AI strategy. It giving a new perspective on the platform we didn't have. Yeah. yeah Again, it's a very good question. again it's a very good question What we discover, this AI and GenAI story is in fact helping the platform. what we discover this ai and genai story is in fact helping the platform Why? why Because if you look at the way most of the customers they do, any way they have to unify their systems in order to create the proper data set to train their AI engines. because if you look at the way most of the customers they do any way they have to unify their systems in order to create the proper data set to train their ai engines In our space, creating high quality data set cost a lot. in our space creating high quality data set cost a lot With the platform, it's built in. with the platform it's built in For a long time, they were seeing the platform as a way to connect the different domain together and in a way to create the collaborations within the company and within the ecosystem, the supply. for a long time they were seeing the platform as a way to connect the different domain together and in a way to create the collaborations within the company and within the ecosystem the supply Now they see also the platform as a foundations, basically to be, at least in our space, for the AI strategy. now they see also the platform as a foundations basically to be at least in our space for the ai strategy It giving a new perspective on the platform we didn't have. it giving a new perspective on the platform we didn't have What we see, in fact, it's a different way to go. Your point is extremely valid. For a long time, we were basically selling the platform as a big transformation programs. Now we can also sell the platform on very specific use cases to say, "Okay, you want to tackle this quality issue. You want to do it with an AI-based approach. Let's use the platform and everything we do on this scope." Then after we come six months after with another use cases. To give a concrete example, this is exactly the way we do at Eaton. Eaton, they say, "Okay, the time to launch a new program for five years to do the big transformation is basically not the right time for us. What we see, in fact, it's a different way to go. what we see in fact it's a different way to go Your point is extremely valid. your point is extremely valid For a long time, we were basically selling the platform as a big transformation programs. for a long time we were basically selling the platform as a big transformation programs Now we can also sell the platform on very specific use cases to say, "Okay, you want to tackle this quality issue. now we can also sell the platform on very specific use cases to say "okay you want to tackle this quality issue You want to do it with an AI-based approach. you want to do it with an ai-based approach Let's use the platform and everything we do on this scope." Then after we come six months after with another use cases. let's use the platform and everything we do on this scope." then after we come six months after with another use cases To give a concrete example, this is exactly the way we do at Eaton. to give a concrete example this is exactly the way we do at eaton Eaton, they say, "Okay, the time to launch a new program for five years to do the big transformation is basically not the right time for us. eaton they say "okay the time to launch a new program for five years to do the big transformation is basically not the right time for us However, if you could come with a very quick win on very focused use cases and progressively we build the foundations, that's the way to deploy. That's the reason why we are also evolving our go-to market in order to give this flexibility, if you want. The takeaway is it's helping in fact the platform story, the platform positioning and the platform game, and it's a way to penetrate the company without having to structure the big projects. That's also something very, very important. At the end, we do sizable deal. Eaton is one of them. However, if you could come with a very quick win on very focused use cases and progressively we build the foundations, that's the way to deploy. however if you could come with a very quick win on very focused use cases and progressively we build the foundations that's the way to deploy That's the reason why we are also evolving our go-to market in order to give this flexibility, if you want. that's the reason why we are also evolving our go-to market in order to give this flexibility if you want The takeaway is it's helping in fact the platform story, the platform positioning and the platform game, and it's a way to penetrate the company without having to structure the big projects. the takeaway is it's helping in fact the platform story the platform positioning and the platform game and it's a way to penetrate the company without having to structure the big projects That's also something very, very important. that's also something very very important At the end, we do sizable deal. at the end we do sizable deal Eaton is one of them. eaton is one of them

Speaker 8: Okay. To the second question around life sciences. I'll capture a little bit broader, to really give you the picture on Medidata plus because we are serving a sector holistically, not just with clinical trial software, but at the enterprise level. That's an important part of our strategy and growth driver, to really implement a strong enterprise model and be less dependent on volume and volume fluctuation. WCT is a great example of that in this context because it shows we are putting an end-to-end platform to operate their business and help them transform and be less dependent in fact on volume to volume or quarter to quarter fluctuations on trial starts. We're putting that strategy into place. This is in this segment, a first deal of this kind that we have transformed. Okay. okay To the second question around life sciences. to the second question around life sciences I'll capture a little bit broader, to really give you the picture on Medidata plus because we are serving a sector holistically, not just with clinical trial software, but at the enterprise level. i'll capture a little bit broader to really give you the picture on medidata plus because we are serving a sector holistically not just with clinical trial software but at the enterprise level That's an important part of our strategy and growth driver, to really implement a strong enterprise model and be less dependent on volume and volume fluctuation. that's an important part of our strategy and growth driver to really implement a strong enterprise model and be less dependent on volume and volume fluctuation WCT is a great example of that in this context because it shows we are putting an end-to-end platform to operate their business and help them transform and be less dependent in fact on volume to volume or quarter to quarter fluctuations on trial starts. wct is a great example of that in this context because it shows we are putting an end-to-end platform to operate their business and help them transform and be less dependent in fact on volume to volume or quarter to quarter fluctuations on trial starts We're putting that strategy into place. we're putting that strategy into place This is in this segment, a first deal of this kind that we have transformed. this is in this segment a first deal of this kind that we have transformed Overall, the Medidata revenue and life sciences revenue was impacted, as you said, in Q1 from lower bookings levels from 2025. The transition into 2026 was in fact difficult. We knew that and anticipated that in our outlook. That will also persist in Q2. The improved business and booking trends starting 2026 are going to have an impact in the second half of the year. Also, the WCT deal is not reflected in our revenue numbers of Q1. It will be starting in Q2, and we'll be ramping up throughout the year. We are building with this a sustainable model to be more enterprise-focused, less dependent on volatility, but focused on strong execution and go-to-market. We also mentioned last time that we changed our go-to-market approach. Overall, the Medidata revenue and life sciences revenue was impacted, as you said, in Q1 from lower bookings levels from 2025. overall the medidata revenue and life sciences revenue was impacted as you said in q1 from lower bookings levels from 2025 The transition into 2026 was in fact difficult. the transition into 2026 was in fact difficult We knew that and anticipated that in our outlook. we knew that and anticipated that in our outlook That will also persist in Q2. that will also persist in q2 The improved business and booking trends starting 2026 are going to have an impact in the second half of the year. the improved business and booking trends starting 2026 are going to have an impact in the second half of the year Also, the WCT deal is not reflected in our revenue numbers of Q1. also the wct deal is not reflected in our revenue numbers of q1 It will be starting in Q2, and we'll be ramping up throughout the year. it will be starting in q2 and we'll be ramping up throughout the year We are building with this a sustainable model to be more enterprise-focused, less dependent on volatility, but focused on strong execution and go-to-market. we are building with this a sustainable model to be more enterprise-focused less dependent on volatility but focused on strong execution and go-to-market We also mentioned last time that we changed our go-to-market approach. we also mentioned last time that we changed our go-to-market approach We also have new leadership in go-to-market, and we are very pleased with the starting of the year and the traction that we can already see and the governance and the focus on execution. That will show its result in 2026. We're confident about that, and our objective is to reach more of the break-even point in the second half of the year, Q3, Q4, to improve the numbers, and then enter 2027 with a run rate where we see growth versus 2026. That's the trajectory on what we are on. From an overall business activity and volume, clinical trial starts are still a bit volatile in the market. I'm not expecting that there is a boost in 2026 from a surge in clinical trial starts. That's not what we are modeling. We also have new leadership in go-to-market, and we are very pleased with the starting of the year and the traction that we can already see and the governance and the focus on execution. we also have new leadership in go-to-market and we are very pleased with the starting of the year and the traction that we can already see and the governance and the focus on execution That will show its result in 2026. that will show its result in 2026 We're confident about that, and our objective is to reach more of the break-even point in the second half of the year, Q3, Q4, to improve the numbers, and then enter 2027 with a run rate where we see growth versus 2026. we're confident about that and our objective is to reach more of the break-even point in the second half of the year q3 q4 to improve the numbers and then enter 2027 with a run rate where we see growth versus 2026 That's the trajectory on what we are on. that's the trajectory on what we are on From an overall business activity and volume, clinical trial starts are still a bit volatile in the market. from an overall business activity and volume clinical trial starts are still a bit volatile in the market I'm not expecting that there is a boost in 2026 from a surge in clinical trial starts. i'm not expecting that there is a boost in 2026 from a surge in clinical trial starts That's not what we are modeling. that's not what we are modeling We are looking at this in a way that starts out fairly flat and we continue to win market share, as we said, and we are expanding more towards enterprise and AI. That's where the growth is coming from. When volumes start to improve, that will be another factor, but that's not what we are counting in here. We are looking at this in a way that starts out fairly flat and we continue to win market share, as we said, and we are expanding more towards enterprise and AI. we are looking at this in a way that starts out fairly flat and we continue to win market share as we said and we are expanding more towards enterprise and ai That's where the growth is coming from. that's where the growth is coming from When volumes start to improve, that will be another factor, but that's not what we are counting in here. when volumes start to improve that will be another factor but that's not what we are counting in here

Speaker 7: Maybe, Rouven, you can because you were a part of the negotiation of the WCT deal and you have been at least in front of the customer on their feedbacks on the assessment of what we do. Maybe you can share a few things with the folks. Maybe, Rouven, you can because you were a part of the negotiation of the WCT deal and you have been at least in front of the customer on their feedbacks on the assessment of what we do. maybe rouven you can because you were a part of the negotiation of the wct deal and you have been at least in front of the customer on their feedbacks on the assessment of what we do Maybe you can share a few things with the folks. maybe you can share a few things with the folks

Speaker 8: Yes. Of course, this was very competitive. This company is also expanding and growing very, very fast. They just completed an acquisition of Catalyst. It's another CRO. So they're growing very fast. I'm sure they're going to expand further organically and inorganically from here without having details, but it's a fast growth company. I don't want to preempt anything on their behalf. That's not my job. But they are really looking for a platform that they can scale and grow their business in the future and transform, really transforming from a service business into an outcome-based business and create an edge in this industry. As I said, it was very competitive and I think we did very well in this contest compared to the competition and beat them. Yes. yes Of course, this was very competitive. of course this was very competitive This company is also expanding and growing very, very fast. this company is also expanding and growing very very fast They just completed an acquisition of Catalyst. they just completed an acquisition of catalyst It's another CRO. it's another cro So they're growing very fast. so they're growing very fast I'm sure they're going to expand further organically and inorganically from here without having details, but it's a fast growth company. i'm sure they're going to expand further organically and inorganically from here without having details but it's a fast growth company I don't want to preempt anything on their behalf. i don't want to preempt anything on their behalf That's not my job. that's not my job But they are really looking for a platform that they can scale and grow their business in the future and transform, really transforming from a service business into an outcome-based business and create an edge in this industry. but they are really looking for a platform that they can scale and grow their business in the future and transform really transforming from a service business into an outcome-based business and create an edge in this industry As I said, it was very competitive and I think we did very well in this contest compared to the competition and beat them. as i said it was very competitive and i think we did very well in this contest compared to the competition and beat them That's why we are confident that this strategy and our AI strategy is really core to transform clinical trial operations, clinical operations, data management. That's what we master, and that's what Clinical Data Studio really opens up a new growth vector. They were very focused on Clinical Data Studio in combination with AI. For them, it's a game changer, including payments, because they facilitate lots of payments to investigators and sites. All of that needs to be automated, and planned. It's a real enterprise transformation. That's why we are confident that this strategy and our AI strategy is really core to transform clinical trial operations, clinical operations, data management. that's why we are confident that this strategy and our ai strategy is really core to transform clinical trial operations clinical operations data management That's what we master, and that's what Clinical Data Studio really opens up a new growth vector. that's what we master and that's what clinical data studio really opens up a new growth vector They were very focused on Clinical Data Studio in combination with AI. they were very focused on clinical data studio in combination with ai For them, it's a game changer, including payments, because they facilitate lots of payments to investigators and sites. for them it's a game changer including payments because they facilitate lots of payments to investigators and sites All of that needs to be automated, and planned. all of that needs to be automated and planned It's a real enterprise transformation. it's a real enterprise transformation

Speaker 7: Yeah. Just to add a few things. You remember, we are repeating this all the time. This industry is still document-based. Yeah. yeah Just to add a few things. just to add a few things You remember, we are repeating this all the time. you remember we are repeating this all the time This industry is still document-based. this industry is still document-based

Speaker 8: Mm-hmm. Mm-hmm. mm-hmm

Speaker 7: We are transitioning them to be model-based. It took some times just for the people to understand what we were saying. Since AI is coming, this is changing the game because the way to unify the system is not anymore through the workflows. That's what Veeva is doing. This is now having a unified model across the different step of the life cycle of the pharma sectors. This is, again, where we are extremely relevant, extremely advanced compared to most of the competitions. This WCT is a good example of this because they did the benchmark at least for almost a year, right? We are transitioning them to be model-based. we are transitioning them to be model-based It took some times just for the people to understand what we were saying. it took some times just for the people to understand what we were saying Since AI is coming, this is changing the game because the way to unify the system is not anymore through the workflows. since ai is coming this is changing the game because the way to unify the system is not anymore through the workflows That's what Veeva is doing. that's what veeva is doing This is now having a unified model across the different step of the life cycle of the pharma sectors. this is now having a unified model across the different step of the life cycle of the pharma sectors This is, again, where we are extremely relevant, extremely advanced compared to most of the competitions. this is again where we are extremely relevant extremely advanced compared to most of the competitions This WCT is a good example of this because they did the benchmark at least for almost a year, right? this wct is a good example of this because they did the benchmark at least for almost a year right

Speaker 8: Yes. Yes. yes

Speaker 7: Surveying all the different solutions on the market. Surveying all the different solutions on the market. surveying all the different solutions on the market

Speaker 8: Yes. Yes. yes

Speaker 7: They did it very seriously because it's a significant investment for them. Just keep this in mind. They did it very seriously because it's a significant investment for them. they did it very seriously because it's a significant investment for them Just keep this in mind. just keep this in mind

Speaker 8: Balaji next. Balaji next. balaji next

Speaker 10: Hi. Good morning, and congratulations on your results this morning. Two questions from my side. First question on pricing. I understand Dassault's long practice of retaining their fair share of value. Still, how are you seeing clients' approach to price negotiation in the wake of AI, as some checks would suggest that clients are using this more as a negotiating tool. Possibly, is it leading to longer negotiation cycle? Second question on margins. Your headcount is down around 2% year-over-year, while first quarter margin is flat in constant currency basis over last year. Looking at rest of the year, your target is to grow margin by 50 basis points-60 basis points. Should we expect continued contraction in headcount? Also, if you could share color on in which areas these savings are being reinvested in. Thank you. Hi. hi Good morning, and congratulations on your results this morning. good morning and congratulations on your results this morning Two questions from my side. two questions from my side First question on pricing. first question on pricing I understand Dassault's long practice of retaining their fair share of value. i understand dassault's long practice of retaining their fair share of value Still, how are you seeing clients' approach to price negotiation in the wake of AI, as some checks would suggest that clients are using this more as a negotiating tool. still how are you seeing clients' approach to price negotiation in the wake of ai as some checks would suggest that clients are using this more as a negotiating tool Possibly, is it leading to longer negotiation cycle? possibly is it leading to longer negotiation cycle Second question on margins. second question on margins Your headcount is down around 2% year-over-year, while first quarter margin is flat in constant currency basis over last year. your headcount is down around 2% year-over-year while first quarter margin is flat in constant currency basis over last year Looking at rest of the year, your target is to grow margin by 50 basis points-60 basis points. looking at rest of the year your target is to grow margin by 50 basis points-60 basis points Should we expect continued contraction in headcount? should we expect continued contraction in headcount Also, if you could share color on in which areas these savings are being reinvested in. also if you could share color on in which areas these savings are being reinvested in Thank you. thank you

Speaker 7: Okay, I will start with the first one. Again, I almost already gave part of the answer on the pricing. The main concern for our customer is to, in fact, when we do the negotiations, to be forced to take AI on top of what they have without controlling basically, the investment case, if you want. The fact that we are giving them this, I would not say as an option, but as a complementary of what we do, it's extremely important. Point number one. Point number two, we do not disrupt the core value of our current portfolio because you still need the role with AI. If you have a Virtual Companion, you still need CATIA to create the geometry. You still need SIMULIA to do the simulation and the certification. Okay, I will start with the first one. okay i will start with the first one Again, I almost already gave part of the answer on the pricing. again i almost already gave part of the answer on the pricing The main concern for our customer is to, in fact, when we do the negotiations, to be forced to take AI on top of what they have without controlling basically, the investment case, if you want. the main concern for our customer is to in fact when we do the negotiations to be forced to take ai on top of what they have without controlling basically the investment case if you want The fact that we are giving them this, I would not say as an option, but as a complementary of what we do, it's extremely important. the fact that we are giving them this i would not say as an option but as a complementary of what we do it's extremely important Point number one. point number one Point number two, we do not disrupt the core value of our current portfolio because you still need the role with AI. point number two we do not disrupt the core value of our current portfolio because you still need the role with ai If you have a Virtual Companion, you still need CATIA to create the geometry. if you have a virtual companion you still need catia to create the geometry You still need SIMULIA to do the simulation and the certification. you still need simulia to do the simulation and the certification Why I'm saying this is because at the end, the case for the virtual companion, the case for the Generative Experiences, are much more made on how they want to operate in the future. That's the reason why we have this unit of knowledge and the unit of work. It's a different conversations compared to what we used to have for the capabilities. That's something very important because you're right. One of my biggest concern was, does it jeopardize all the negotiation we have currently? Because people want to anticipate this discussion. The fact that we have been able to segregate the core value of all different category of solutions, it's helping a lot. A lot. We have, for example, a concrete case. Right now, we are negotiating an extension of installed base within a large automaker in India. Why I'm saying this is because at the end, the case for the virtual companion, the case for the Generative Experiences, are much more made on how they want to operate in the future. why i'm saying this is because at the end the case for the virtual companion the case for the generative experiences are much more made on how they want to operate in the future That's the reason why we have this unit of knowledge and the unit of work. that's the reason why we have this unit of knowledge and the unit of work It's a different conversations compared to what we used to have for the capabilities. it's a different conversations compared to what we used to have for the capabilities That's something very important because you're right. that's something very important because you're right One of my biggest concern was, does it jeopardize all the negotiation we have currently? one of my biggest concern was does it jeopardize all the negotiation we have currently Because people want to anticipate this discussion. because people want to anticipate this discussion The fact that we have been able to segregate the core value of all different category of solutions, it's helping a lot. the fact that we have been able to segregate the core value of all different category of solutions it's helping a lot A lot. a lot We have, for example, a concrete case. we have for example a concrete case Right now, we are negotiating an extension of installed base within a large automaker in India. right now we are negotiating an extension of installed base within a large automaker in india They have standardized on the platform, and they say, "But we also want to have AI as part of it." Fine. Again, it's a different discussion. It's a discussion about how much you want to standardize and to automatize, how much you want to scale using Virtual Companion rather than to hire people, versus the price for CATIA or the price for ENOVIA. This is very well accepted, in fact. This segregation is well accepted. They have standardized on the platform, and they say, "But we also want to have AI as part of it." Fine. they have standardized on the platform and they say "but we also want to have ai as part of it." fine Again, it's a different discussion. again it's a different discussion It's a discussion about how much you want to standardize and to automatize, how much you want to scale using Virtual Companion rather than to hire people, versus the price for CATIA or the price for ENOVIA. it's a discussion about how much you want to standardize and to automatize how much you want to scale using virtual companion rather than to hire people versus the price for catia or the price for enovia This is very well accepted, in fact. this is very well accepted in fact This segregation is well accepted. this segregation is well accepted Now, the thing they have in mind is, "Okay, but we do not want to, again, to be forced, and we do not want this to be out of control." This is where I think we need a little bit more practice to package it with a level of confidence that we will not come back six months after to them to say, "Hey guys, in fact, you need to spend much more compared to what we have anticipated." That's the reason why in some of engagement we do right now, we are probably giving more flexibility than what they need, because we also need to build our learning curve. Right? Now, the thing they have in mind is, "Okay, but we do not want to, again, to be forced, and we do not want this to be out of control." This is where I think we need a little bit more practice to package it with a level of confidence that we will not come back six months after to them to say, "Hey guys, in fact, you need to spend much more compared to what we have anticipated." That's the reason why in some of engagement we do right now, we are probably giving more flexibility than what they need, because we also need to build our learning curve. now the thing they have in mind is "okay but we do not want to again to be forced and we do not want this to be out of control." this is where i think we need a little bit more practice to package it with a level of confidence that we will not come back six months after to them to say "hey guys in fact you need to spend much more compared to what we have anticipated." that's the reason why in some of engagement we do right now we are probably giving more flexibility than what they need because we also need to build our learning curve Right? right

Speaker 8: Balaji, coming to your second question on margin. I'm very pleased with the margin for the first quarter. It's a good start. The effect on lower headcount really comes from our strategy to capitalize on some investments we did in 2025. Namely, we expanded the growth in people and resources a lot in Centric. We are in a year where we capitalize on those investments before we are reinvesting in the second half to really build the growth trajectory for 2027 and beyond. There are some cycles that we are going through. The lower headcount entering into 2026 will then have an effect also on quarters to follow in terms of the ability to expand margin while revenue starts to accelerate. We'll see that effect. Balaji, coming to your second question on margin. balaji coming to your second question on margin I'm very pleased with the margin for the first quarter. i'm very pleased with the margin for the first quarter It's a good start. it's a good start The effect on lower headcount really comes from our strategy to capitalize on some investments we did in 2025. the effect on lower headcount really comes from our strategy to capitalize on some investments we did in 2025 Namely, we expanded the growth in people and resources a lot in Centric. namely we expanded the growth in people and resources a lot in centric We are in a year where we capitalize on those investments before we are reinvesting in the second half to really build the growth trajectory for 2027 and beyond. we are in a year where we capitalize on those investments before we are reinvesting in the second half to really build the growth trajectory for 2027 and beyond There are some cycles that we are going through. there are some cycles that we are going through The lower headcount entering into 2026 will then have an effect also on quarters to follow in terms of the ability to expand margin while revenue starts to accelerate. the lower headcount entering into 2026 will then have an effect also on quarters to follow in terms of the ability to expand margin while revenue starts to accelerate We'll see that effect. we'll see that effect OpEx growth is just below 3%, with payroll being marginally up considering that ACR, or your annual compensation increases and inflation already has to be factored in here. We're offsetting that almost. Where are we spending, to your question? In cloud, AI, infrastructure, Outscale, this is where a significant portion of the cost increase is. Nevertheless, overall, it's sub 3% level, so it's well managed in line with our current revenue growth, but as revenue starts to pick up, we'll see margin expansion throughout the year. That's what is reflected in our guidance. Now, one additional comment I would like to highlight, when you look at the IFRS statement, and you look at the IFRS operating margin, operating income has significantly increased due to lower stock-based compensation. That in the IFRS statement, of course, we have a negative FX impact that we are more than offsetting. OpEx growth is just below 3%, with payroll being marginally up considering that ACR, or your annual compensation increases and inflation already has to be factored in here. opex growth is just below 3% with payroll being marginally up considering that acr or your annual compensation increases and inflation already has to be factored in here We're offsetting that almost. we're offsetting that almost Where are we spending, to your question? where are we spending to your question In cloud, AI, infrastructure, Outscale, this is where a significant portion of the cost increase is. in cloud ai infrastructure outscale this is where a significant portion of the cost increase is Nevertheless, overall, it's sub 3% level, so it's well managed in line with our current revenue growth, but as revenue starts to pick up, we'll see margin expansion throughout the year. nevertheless overall it's sub 3% level so it's well managed in line with our current revenue growth but as revenue starts to pick up we'll see margin expansion throughout the year That's what is reflected in our guidance. that's what is reflected in our guidance Now, one additional comment I would like to highlight, when you look at the IFRS statement, and you look at the IFRS operating margin, operating income has significantly increased due to lower stock-based compensation. now one additional comment i would like to highlight when you look at the ifrs statement and you look at the ifrs operating margin operating income has significantly increased due to lower stock-based compensation That in the IFRS statement, of course, we have a negative FX impact that we are more than offsetting. that in the ifrs statement of course we have a negative fx impact that we are more than offsetting From an operating standpoint, I think you see good improvement coming into 2026 and it's under control. From an operating standpoint, I think you see good improvement coming into 2026 and it's under control. from an operating standpoint i think you see good improvement coming into 2026 and it's under control

Speaker 7: Maybe I want to add one thing, because you're right, we are slightly decreasing in term of number of people. Why so? Because there is, I think, a different path for the software company right now. Either you do the SAP way, you cut massively your workforce. Or you do what we do, which is, and the reason we do it this way is because you remember we have engineers, we do not have coders. There is a big difference. What we do with AI, we use this as a way to redistribute the people within the company on different roles. That's the way we do. By doing so, we in a way use the natural attrition, and we are replacing one people among two, right, for the natural attrition. Maybe I want to add one thing, because you're right, we are slightly decreasing in term of number of people. maybe i want to add one thing because you're right we are slightly decreasing in term of number of people Why so? why so Because there is, I think, a different path for the software company right now. because there is i think a different path for the software company right now Either you do the SAP way, you cut massively your workforce. either you do the sap way you cut massively your workforce Or you do what we do, which is, and the reason we do it this way is because you remember we have engineers, we do not have coders. or you do what we do which is and the reason we do it this way is because you remember we have engineers we do not have coders There is a big difference. there is a big difference What we do with AI, we use this as a way to redistribute the people within the company on different roles. what we do with ai we use this as a way to redistribute the people within the company on different roles That's the way we do. that's the way we do By doing so, we in a way use the natural attrition, and we are replacing one people among two, right, for the natural attrition. by doing so we in a way use the natural attrition and we are replacing one people among two right for the natural attrition More importantly, internally, we are forcing the realignment of the resources according to the needs where we need to invest. That's what we are currently doing. More importantly, internally, we are forcing the realignment of the resources according to the needs where we need to invest. more importantly internally we are forcing the realignment of the resources according to the needs where we need to invest That's what we are currently doing. that's what we are currently doing

Speaker 10: Very good. Thank you. Very good. very good Thank you. thank you

Speaker 4: We will now take questions online. We will now take questions online. we will now take questions online

Speaker 6: Thank you. To ask a question via the telephone, please press star one and one on your keypad and wait for your name to be announced. To withdraw your question, please press star one and one again. We will now take our first phone question from the line of Laurent Daure of Kepler Cheuvreux. Please go ahead, Laurent. Thank you. thank you To ask a question via the telephone, please press star one and one on your keypad and wait for your name to be announced. to ask a question via the telephone please press star one and one on your keypad and wait for your name to be announced To withdraw your question, please press star one and one again. to withdraw your question please press star one and one again We will now take our first phone question from the line of Laurent Daure of Kepler Cheuvreux. we will now take our first phone question from the line of laurent daure of kepler cheuvreux Please go ahead, Laurent. please go ahead laurent

Speaker 3: Yes, thank you. Good morning, gentlemen. Two for me as well. The first one is on the Life Sciences. If you could for the year, break it down between Medidata and BIOVIA, and also more precisely on Medidata. I hear the catalyst for the second half, but I'm more keen to see what could go wrong that could lead the second half not to improve from the first one. What is the main risk according to you? What do you lack in terms of visibility? And my second question is that if I take the midpoint of the first half and full year guidance, basically 3% for first half and you would need 5% second half. If you could give us the building blocks, how you get better from the first to the second, I hear probably your Life Sciences, but what else? Thank you so much. Yes, thank you. yes thank you Good morning, gentlemen. good morning gentlemen Two for me as well. two for me as well The first one is on the Life Sciences. the first one is on the life sciences If you could for the year, break it down between Medidata and BIOVIA, and also more precisely on Medidata. if you could for the year break it down between medidata and biovia and also more precisely on medidata I hear the catalyst for the second half, but I'm more keen to see what could go wrong that could lead the second half not to improve from the first one. i hear the catalyst for the second half but i'm more keen to see what could go wrong that could lead the second half not to improve from the first one What is the main risk according to you? what is the main risk according to you What do you lack in terms of visibility? what do you lack in terms of visibility And my second question is that if I take the midpoint of the first half and full year guidance, basically 3% for first half and you would need 5% second half. and my second question is that if i take the midpoint of the first half and full year guidance basically 3% for first half and you would need 5% second half If you could give us the building blocks, how you get better from the first to the second, I hear probably your Life Sciences, but what else? if you could give us the building blocks how you get better from the first to the second i hear probably your life sciences but what else Thank you so much. thank you so much

Speaker 8: Okay. Laurent, thank you for your questions and good morning to you. To the first one, the breakdown is pretty simple. Medidata was down -3%, BIOVIA was slightly up, but the aggregate is still -3%. On the second question, what could go wrong? Well, we're creating a momentum in an uptick in business activity, which is reflected in bookings. When I see how those bookings translate to revenue in 2026 and 2027, it's improving versus start of the year. That is the good outcome of a, I would say, good start of the year in Q1 that has its positive effect on 2027, but it's not reflected in the Q1 numbers. There is clearly a structural improvement that is visible as a result of Q1. We have Q2, we have a decent pipeline of Q2 opportunities that will then build our transition point from H1-H2. Okay. okay Laurent, thank you for your questions and good morning to you. laurent thank you for your questions and good morning to you To the first one, the breakdown is pretty simple. to the first one the breakdown is pretty simple Medidata was down -3%, BIOVIA was slightly up, but the aggregate is still -3%. medidata was down -3% biovia was slightly up but the aggregate is still -3% On the second question, what could go wrong? on the second question what could go wrong Well, we're creating a momentum in an uptick in business activity, which is reflected in bookings. well we're creating a momentum in an uptick in business activity which is reflected in bookings When I see how those bookings translate to revenue in 2026 and 2027, it's improving versus start of the year. when i see how those bookings translate to revenue in 2026 and 2027 it's improving versus start of the year That is the good outcome of a, I would say, good start of the year in Q1 that has its positive effect on 2027, but it's not reflected in the Q1 numbers. that is the good outcome of a i would say good start of the year in q1 that has its positive effect on 2027 but it's not reflected in the q1 numbers There is clearly a structural improvement that is visible as a result of Q1. there is clearly a structural improvement that is visible as a result of q1 We have Q2, we have a decent pipeline of Q2 opportunities that will then build our transition point from H1- H2. we have q2 we have a decent pipeline of q2 opportunities that will then build our transition point from h1- h2 That's what we are now focused on executing, Laurent, which is making sure that we are hitting our targets for the second quarter business, and that will really be the translation point from H1 towards H2. We execute the rest of the year. We mentioned that we have strengthened our go-to-market. I feel we have a better distributed and better control from an account management standpoint, including our direct business, enterprise business, mid-market, as well as partners. We have made the necessary improvements as it relates to our contracting model to be less dependent on volatility and volume. All of those things will take effect as we execute 2026. We cannot go backwards. We only go forward, right? We'll see that improvement gradually happening as we move forward. That's what we are now focused on executing, Laurent, which is making sure that we are hitting our targets for the second quarter business, and that will really be the translation point from H1 towards H2. that's what we are now focused on executing laurent which is making sure that we are hitting our targets for the second quarter business and that will really be the translation point from h1 towards h2 We execute the rest of the year. we execute the rest of the year We mentioned that we have strengthened our go-to-market. we mentioned that we have strengthened our go-to-market I feel we have a better distributed and better control from an account management standpoint, including our direct business, enterprise business, mid-market, as well as partners. i feel we have a better distributed and better control from an account management standpoint including our direct business enterprise business mid-market as well as partners We have made the necessary improvements as it relates to our contracting model to be less dependent on volatility and volume. we have made the necessary improvements as it relates to our contracting model to be less dependent on volatility and volume All of those things will take effect as we execute 2026. all of those things will take effect as we execute 2026 We cannot go backwards. we cannot go backwards We only go forward, right? we only go forward right We'll see that improvement gradually happening as we move forward. we'll see that improvement gradually happening as we move forward Overall, I think, as I said, Q2 is probably around in line with Q1, and then we will see an improvement in H2. That's what we are currently focused on. Coming back to the second question, if I may, which is the guidance. Q1, you've mentioned Q2 and the rest of the year. Q1 was 3% growth. For Q2, we are focusing on 3.5%-4%. To be precise, you can model the midpoint between 2%-5%. That's where we are. This is where we are anchored towards. Then as you go from Q3 and Q4, for H2, we are looking at 4%-6%. When you do that math, we are landing safely around 4% growth. What are the building blocks of this? Clearly, within Industrial Innovation and 3DEXPERIENCE, that's a continuous growth driver. Overall, I think, as I said, Q2 is probably around in line with Q1, and then we will see an improvement in H2. overall i think as i said q2 is probably around in line with q1 and then we will see an improvement in h2 That's what we are currently focused on. that's what we are currently focused on Coming back to the second question, if I may, which is the guidance. coming back to the second question if i may which is the guidance Q1, you've mentioned Q2 and the rest of the year. q1 you've mentioned q2 and the rest of the year Q1 was 3% growth. q1 was 3% growth For Q2, we are focusing on 3.5%-4%. for q2 we are focusing on 3.5%-4% To be precise, you can model the midpoint between 2%-5%. to be precise you can model the midpoint between 2%-5% That's where we are. that's where we are This is where we are anchored towards. this is where we are anchored towards Then as you go from Q3 and Q4, for H2, we are looking at 4%-6%. then as you go from q3 and q4 for h2 we are looking at 4%-6% When you do that math, we are landing safely around 4% growth. when you do that math we are landing safely around 4% growth What are the building blocks of this? what are the building blocks of this Clearly, within Industrial Innovation and 3DEXPERIENCE, that's a continuous growth driver. clearly within industrial innovation and 3dexperience that's a continuous growth driver We know we had the strong year-over-year comparison in the first quarter, but that will be behind us. We have a more favorable year-over-year comparison in H2 versus H1. From an industry standpoint, I think Pascal gave a good overview on where we see growth as well as from a geo standpoint. We have a healthy pipeline in the Americas. We are well-diversified in Asia. China is a bit more bumpy, but we're working on that. In Europe, we are mastering the headwind from the auto sector with diversification. Overall, the pipeline reflects this. That diversification, we mentioned that before. We have less of a dependency on auto than we had in 2025, in 2026, which is good. These are the building blocks, Laurent. We know we had the strong year-over-year comparison in the first quarter, but that will be behind us. we know we had the strong year-over-year comparison in the first quarter but that will be behind us We have a more favorable year-over-year comparison in H2 versus H1. we have a more favorable year-over-year comparison in h2 versus h1 From an industry standpoint, I think Pascal gave a good overview on where we see growth as well as from a geo standpoint. from an industry standpoint i think pascal gave a good overview on where we see growth as well as from a geo standpoint We have a healthy pipeline in the Americas. we have a healthy pipeline in the americas We are well-diversified in Asia. we are well-diversified in asia China is a bit more bumpy, but we're working on that. china is a bit more bumpy but we're working on that In Europe, we are mastering the headwind from the auto sector with diversification. in europe we are mastering the headwind from the auto sector with diversification Overall, the pipeline reflects this. overall the pipeline reflects this That diversification, we mentioned that before. that diversification we mentioned that before We have less of a dependency on auto than we had in 2025, in 2026, which is good. we have less of a dependency on auto than we had in 2025 in 2026 which is good These are the building blocks, Laurent. these are the building blocks laurent

Speaker 3: They are very clear. Thank you, Rouven. They are very clear. they are very clear Thank you, Rouven. thank you rouven

Speaker 8: I forgot one thing, which is SOLIDWORKS. I should not have forgotten that because that's on a strong momentum with very strong partner engagement, and you also saw the demo from 2D-3D. It's a strong catalyst for SOLIDWORKS. I forgot one thing, which is SOLIDWORKS. I should not have forgotten that because that's on a strong momentum with very strong partner engagement, and you also saw the demo from 2D- 3D. i forgot one thing which is solidworks. i should not have forgotten that because that's on a strong momentum with very strong partner engagement and you also saw the demo from 2d- 3d It's a strong catalyst for SOLIDWORKS. it's a strong catalyst for solidworks

Speaker 3: Yes. Yes. yes

Speaker 6: Right. Thank you. We will now take our next phone question from the line of Michael Briest of UBS. Please ask your question. Right. right Thank you. thank you We will now take our next phone question from the line of Michael Briest of UBS. we will now take our next phone question from the line of michael briest of ubs Please ask your question. please ask your question

Speaker 5: Good morning. Thank you. Good to see the reacceleration in Centric. I seem to recall last year, though, you were talking about a SaaS transition. I'm assuming that that's not the way these deals were signed. Can you just give an update on how that business looks between on-premise subscription, perpetual license, SaaS, and how you expect it to develop? Then, an update, Pascal, maybe on what the Chief Transformation Officer, Chief Operating Officer are sort of doing and the plan for the rest of this year. Then also on Bernard's role as Chief Architect, what sort of involvement does he have in product strategy or R&D? Thank you. Good morning. good morning Thank you. thank you Good to see the reacceleration in Centric. good to see the reacceleration in centric I seem to recall last year, though, you were talking about a SaaS transition. i seem to recall last year though you were talking about a saas transition I'm assuming that that's not the way these deals were signed. i'm assuming that that's not the way these deals were signed Can you just give an update on how that business looks between on-premise subscription, perpetual license, SaaS, and how you expect it to develop? can you just give an update on how that business looks between on-premise subscription perpetual license saas and how you expect it to develop Then, an update, Pascal, maybe on what the Chief Transformation Officer, Chief Operating Officer are sort of doing and the plan for the rest of this year. then an update pascal maybe on what the chief transformation officer chief operating officer are sort of doing and the plan for the rest of this year Then also on Bernard's role as Chief Architect, what sort of involvement does he have in product strategy or R&D? then also on bernard's role as chief architect what sort of involvement does he have in product strategy or r&d Thank you. thank you

Speaker 8: Yeah. Hello, Michael. Thank you. I take the first question. You're right, the focus of Centric is to transform to a SaaS and cloud business. From an architectural product standpoint, we are very much focused on that. In fact, we also signed deals last year and including this year that are not reflected in revenue because they are billing as cloud models are. They're purely ratable. We had some large on-premise subscription deals in the quarter, that's right. We'll continue to have to master this mix and the transition from the on-premise to cloud. From a product standpoint, this is our number one focus. Our 2030 model for Centric that we have to achieve EUR 1 billion-plus in revenue. It reflects a large share of SaaS subscription, cloud subscription. This is well-aligned within the objectives and is our focus to achieve that. Yeah. yeah Hello, Michael. hello michael Thank you. thank you I take the first question. i take the first question You're right, the focus of Centric is to transform to a SaaS and cloud business. you're right the focus of centric is to transform to a saas and cloud business From an architectural product standpoint, we are very much focused on that. from an architectural product standpoint we are very much focused on that In fact, we also signed deals last year and including this year that are not reflected in revenue because they are billing as cloud models are. in fact we also signed deals last year and including this year that are not reflected in revenue because they are billing as cloud models are They're purely ratable. they're purely ratable We had some large on-premise subscription deals in the quarter, that's right. we had some large on-premise subscription deals in the quarter that's right We'll continue to have to master this mix and the transition from the on-premise to cloud. we'll continue to have to master this mix and the transition from the on-premise to cloud From a product standpoint, this is our number one focus. from a product standpoint this is our number one focus Our 2030 model for Centric that we have to achieve EUR 1 billion-plus in revenue. our 2030 model for centric that we have to achieve eur 1 billion-plus in revenue It reflects a large share of SaaS subscription, cloud subscription. it reflects a large share of saas subscription cloud subscription This is well-aligned within the objectives and is our focus to achieve that. this is well-aligned within the objectives and is our focus to achieve that You're right, in Q1, there was also a good contribution from on-premise deals. It's ongoing. You're right, in Q1, there was also a good contribution from on-premise deals. you're right in q1 there was also a good contribution from on-premise deals It's ongoing. it's ongoing

Speaker 7: Okay, the second part of the question is, you're right, Pierre Barnabé took these positions within Dassault Systèmes, and the primary focus for him is the indirect channel. Specifically, CPE. You remember, we have two different indirect channels. One is the one historically selling SOLIDWORKS, and the one historically selling CATIA, CRE for SOLIDWORKS and CPE for CATIA. I think this is where we need to redynamize. Why so? Because, again, if you look at our ecosystems, there is a big topic going on. Most of them, they know how to sell applications. Not all of them, they know how to sell the platform. Because selling the platform, in reality, you need to be a kind of system integrators. You need to have these kind of skills. Then after, if you want to sell the cloud, you almost need to be an hyperscaler. Okay, the second part of the question is, you're right, Pierre Barnabé took these positions within Dassault Systèmes, and the primary focus for him is the indirect channel. okay the second part of the question is you're right pierre barnabé took these positions within dassault systèmes and the primary focus for him is the indirect channel Specifically, CPE. specifically cpe You remember, we have two different indirect channels. you remember we have two different indirect channels One is the one historically selling SOLIDWORKS, and the one historically selling CATIA, CRE for SOLIDWORKS and CPE for CATIA. one is the one historically selling solidworks and the one historically selling catia cre for solidworks and cpe for catia I think this is where we need to redynamize. i think this is where we need to redynamize Why so? why so Because, again, if you look at our ecosystems, there is a big topic going on. because again if you look at our ecosystems there is a big topic going on Most of them, they know how to sell applications. most of them they know how to sell applications Not all of them, they know how to sell the platform. not all of them they know how to sell the platform Because selling the platform, in reality, you need to be a kind of system integrators. because selling the platform in reality you need to be a kind of system integrators You need to have these kind of skills. you need to have these kind of skills Then after, if you want to sell the cloud, you almost need to be an hyperscaler. then after if you want to sell the cloud you almost need to be an hyperscaler If you want to sell the domain specializations, you almost need to be an engineering services company. If you want to sell the transformation, you need almost to be a consulting company. Where I want to go, in the past, we have only one model for them, which was the reseller model. I think this model, the time is over to have only one model. We need to have a different ecosystem with different category of partners, having different roles in order to foster the adoptions of everything we do through this, what we used to call CPE. This is clearly the main mission for Pierre. He's coming with a lot of background on this. Basically, he knows extremely well all the IT ecosystem. If you want to sell the domain specializations, you almost need to be an engineering services company. if you want to sell the domain specializations you almost need to be an engineering services company If you want to sell the transformation, you need almost to be a consulting company. if you want to sell the transformation you need almost to be a consulting company Where I want to go, in the past, we have only one model for them, which was the reseller model. where i want to go in the past we have only one model for them which was the reseller model I think this model, the time is over to have only one model. i think this model the time is over to have only one model We need to have a different ecosystem with different category of partners, having different roles in order to foster the adoptions of everything we do through this, what we used to call CPE. we need to have a different ecosystem with different category of partners having different roles in order to foster the adoptions of everything we do through this what we used to call cpe This is clearly the main mission for Pierre. this is clearly the main mission for pierre He's coming with a lot of background on this. he's coming with a lot of background on this Basically, he knows extremely well all the IT ecosystem. basically he knows extremely well all the it ecosystem He has already all the connections, whatever is with the hyperscaler, the consulting firm, the IT services, the engineering services, and he will be the one having the responsibility to build this model and to orchestrate the operating model. Related to Bernard, I think, you know Bernard is a product guy since day one. No one will argue one thing, that he was very instrumental with V4, V5, and V6. Given where we are, I think it's extremely important for me as a CEO of this company to accelerate the AI roadmap. This is where Bernard is focusing right now. To accelerate the AI roadmap, not only with the development team, but also with some early advanced customers, because they are the one also driving, if you want, the roadmap in conjunction with us. He has not only the credibility, he has the leadership, he has the will. He has already all the connections, whatever is with the hyperscaler, the consulting firm, the IT services, the engineering services, and he will be the one having the responsibility to build this model and to orchestrate the operating model. he has already all the connections whatever is with the hyperscaler the consulting firm the it services the engineering services and he will be the one having the responsibility to build this model and to orchestrate the operating model Related to Bernard, I think, you know Bernard is a product guy since day one. related to bernard i think you know bernard is a product guy since day one No one will argue one thing, that he was very instrumental with V4, V5, and V6. no one will argue one thing that he was very instrumental with v4 v5 and v6 Given where we are, I think it's extremely important for me as a CEO of this company to accelerate the AI roadmap. given where we are i think it's extremely important for me as a ceo of this company to accelerate the ai roadmap This is where Bernard is focusing right now. this is where bernard is focusing right now To accelerate the AI roadmap, not only with the development team, but also with some early advanced customers, because they are the one also driving, if you want, the roadmap in conjunction with us. to accelerate the ai roadmap not only with the development team but also with some early advanced customers because they are the one also driving if you want the roadmap in conjunction with us He has not only the credibility, he has the leadership, he has the will. he has not only the credibility he has the leadership he has the will He still have the energy to do that. Believe me, he is more happy than he used to. I think it's really for the benefit of the company. He still have the energy to do that. he still have the energy to do that Believe me, he is more happy than he used to. believe me he is more happy than he used to I think it's really for the benefit of the company. i think it's really for the benefit of the company

Speaker 5: Thank you. Thank you. thank you

Speaker 7: I think it's time to conclude. Thank you very much for all of you being there. I think we try to reduce a little bit the time for the presentations to give more time for the Q&A. I think you will appreciate. Now, coming back to my closing remark, I think we delivered Q1. We are on track. More importantly, I think we are building something fundamental, with 3D Universes, our AI starts from physics, simulation, industrial data, and really a decade of expertise. Remember, we don't just digitalize the workflow, we capture really the way industry works. Every technology wave is making this promise to simplify. I think this is more and more important because, as I was telling in my introductions, the problem for many of our customer is not the demands, it's the complexities they have to master. I think it's time to conclude. i think it's time to conclude Thank you very much for all of you being there. thank you very much for all of you being there I think we try to reduce a little bit the time for the presentations to give more time for the Q&A. i think we try to reduce a little bit the time for the presentations to give more time for the q&a I think you will appreciate. i think you will appreciate Now, coming back to my closing remark, I think we delivered Q1. now coming back to my closing remark i think we delivered q1 We are on track. we are on track More importantly, I think we are building something fundamental, with 3D Universes, our AI starts from physics, simulation, industrial data, and really a decade of expertise. more importantly i think we are building something fundamental with 3d universes our ai starts from physics simulation industrial data and really a decade of expertise Remember, we don't just digitalize the workflow, we capture really the way industry works. remember we don't just digitalize the workflow we capture really the way industry works Every technology wave is making this promise to simplify. every technology wave is making this promise to simplify I think this is more and more important because, as I was telling in my introductions, the problem for many of our customer is not the demands, it's the complexities they have to master. i think this is more and more important because as i was telling in my introductions the problem for many of our customer is not the demands it's the complexities they have to master This is really, and I'm insisting on this is really where we make the difference. Hope to see you in the coming days and weeks on the road for the 3DEXPERIENCE World and for the one that will have a chance to see, and probably Rouven and Marie will see most of the people. Look forward to the next quarter. Thank you so much. This is really, and I'm insisting on this is really where we make the difference. this is really and i'm insisting on this is really where we make the difference Hope to see you in the coming days and weeks on the road for the 3DEXPERIENCE World and for the one that will have a chance to see, and probably Rouven and Marie will see most of the people. hope to see you in the coming days and weeks on the road for the 3dexperience world and for the one that will have a chance to see and probably rouven and marie will see most of the people Look forward to the next quarter. look forward to the next quarter Thank you so much. thank you so much