Dassault Systèmes SE (DSY) Earnings Call Transcript & Summary

Good morning, or good afternoon to all of you. Before giving the floor to Pascal, I would like to remind you that some of the comments and presentation will contain forward-looking statements that could differ materially from actual results. Please refer to today's press release and the risk factor of our 2019 [Foreign Language]. You will also notice that Dassault Systèmes' speaker presented our auditorium don't wear masks. Please note that all COVID-19 protective measures, not only in terms of social distancing have been taken. Pascal?

Thank you, François-José. Good morning, good afternoon to all of you who are joining us today for the Capital Market Day. As François stated, it's a different market day by its timing and format and be sure that we are safe. As you know, France is in lockdown and why we are present on our work campus, a number of our speaker will be joining us remotely. We are delighted to see you, as many of you attended today, and we look forward, hopefully, to meeting you again in person very soon. We have prepared the following program for you this afternoon. Firstly, we will start with Bernard Charlès, our Vice Chairman and CEO, will take you through his visions of how to build a sustainable future for Dassault Systèmes and also how to turn Dassault Systèmes into a platform-based company. Then, Tarek Sherif and Glen de Vries, Medidata, Co-CEOs and Co-Founders will share their perspective of life sciences and health care at large. In an exceptional moment, because we are in the crisis right now. And they would also comment Medidata performance and the integration because it has been a year we are together. Joining them, will be Vishal Mehta, VP of Clinical Operations at our client, Autolus. After a quick break, we will share our perspective on manufacturing industry sectors starting with the automotive industry challenges. And our speaker will be Laurence Montanari with our VP, Transportation and Mobility. And then after, we will share our insight on consumer approach with Philippe Loeb our VP, Consumer Packaged Goods in Retail and Home & Lifestyle. Then 2 of our infrastructure clients will be present. Xavier Ursat, EDF Group Senior Executive Vice President, New Nuclear Projects and Engineering. And from McDermott International, Vaseem Khan, Global Vice President Digital and Analytics. They will explain what their challenges are and how 3DEXPERIENCE platform is helping them in their domain. Finally, I will wrap up this half day our growth perspectives in the coming years updated for COVID-19. Please note that each of the presentation will be followed by a Q&A session. You will, therefore, need to register each presentation when asked by the operator. To ensure that everybody has a chance to ask questions, please try to avoid as much as possible multipart questions. On our side, we will answer as constantly as possible. Now it's my pleasure to have Bernard on stage, Bernard, the floor is yours.

Thank you, Pascal, and good morning or good afternoon to all of you, and thank you for joining. Only a year ago, less than a year ago, a few months ago, on February 6, 2020, it looks like a long time ago. I hope you are all going well since then with the pandemic. We shared with you, Pascal and I, the long-term horizon for Dassault Systèmes. And my first message to you is this long-term horizon has not changed. We believe it will happen. And I want to address with you in the next 15 minutes, six questions. Why a purpose-driven company is at a center of who we are and what we do? Why virtual twin experience is the next big step after digitalization in all sectors we serve? Why is the 3DEXPERIENCE platform, a platform for enterprises, but also for people. And the game changer aspect of industry solution process and roles, why is it a game changer? And at the center of it is the definition of the workforce of the future. So it's not about capabilities. It's about possibilities for people to do more differently. And finally, why the platform is inclusive to all functioning companies or in different network of companies and is our ambition relevant? And for this, I'm sure Pascal will provide you with a deep analysis about why we think our ambition is possible. So let's start. First, what unites us at Dassault Systèmes, all of us on the new talents coming and joining us from all perspective of disciplines in the scientific world in medicine, manufacturing, engineering is because the purpose is really bringing us together. And I think in some way, that Tarek and Glen, Tarek Sherif and Glen de Vries, the co-Founders of Medidata, they joined Dassault Systèmes because of that purpose. The purpose of creating a more sustainable world using the virtual world to harmonize product nature on life. We are super committed to apply the 17 U.S. -- U.N. sustainable factors in every solution we deliver. And there are very tangible plans going on led by Alice Steenland, a great star understanding those problematics to really make our industry solutions relevant for sustainable innovation. And of course, yes, the CO2, our net-zero aspect. Carbon is a very important thing but we think water on many of those parameters are, too, for a sustainable world. And our measure is not only done on absolute terms. It's also done on our contribution, what we call the handprint and footprint factor, which we think is gigantic when customers are using our solutions. Please refer to the Harvard study that was done on this. I think it's online. Now as I said, on February 6 this year, we laid out the ambition to apply the virtual twin experience for things, everything from shampoo bottles to satellite manufacturing world, life science, human bodies, virtual twin experience as well as infrastructure and cities, and we think it's possible. And in the next minute, I want to show you the game-changer showcases with clients who are doing it as we speak. Now if I look at the people dimension, as we think human is really -- an experience is human, all of us are people at work, people in our own life, people who don't want necessary, to be patient. We want to be people in good health, but sometimes we ask to be patient to get the right therapeutics. So I think the touch point that Dassault Systèmes is having today across world are gigantic. Remember, over 25,000 to 30,000 companies are joining the Dassault Systèmes community of clients every year. So in that context, no doubt, digitalization is changing the world, but we think that more importantly, the adoption of virtual twin experience for all these 3 big sectors of the economy, manufacturing, life science and health care, as well as in [ factory ] on city is changing in a deep way. The way we can apprehend, how to improve the world. That's what we are doing. And we're super committed to do it. And I think we have proof points that shows it. Now to do so, we went far beyond collection of functionalities, building a platform something like what is used today for retail and applying it to life science manufacturing and infrastructure is scientific, not only an IT part. It means managing on mastering science modeling simulation on what we call now real-world evidence, data from the real-world as we operate it on this platform. It's both an operating system to run those out of the box industry solutions as well as creating new business model. And this is what I want to talk to you about illustrating with a few customer cases, which are not customer wins. It's more profound than that. It's about game changer, customer changing the way their own industries is working. If you look at, for example, manufacturing industries, and in this I see 3 major tipping points. System is everywhere. Why? Because software is inside the hardware and connected all together to provide new experiences. Platform is becoming a reason that for many of those companies because not only they need a platform to connect the dots inside their companies and outside, but they need the platform to see the value in real usage of the products they produce to in the real life. And then, of course, the obligation, their engagement to have a sustainable innovation process and I think the rules in the 21st centuries are going to change in a big way from that standpoint. Here are a collection of customers who are really game changer for us. Ericsson is a massive game challenger. Is it a hardware company or is it a software company? I think it's both, and it's well balanced. Ball Aerospace, same thing, virtual twin experience for the mission, not only the product, STMicro, virtual twin experience for first-pass silicon. Airbus Defence and Space for product and service in operation, like what we have done with other operators. NIO for new mobility, providing real virtual twin experience for product launch. On SNCF, prediction about safety of equipment in operation with a very large platform adoption on -- that's a customer that could not have been in the past, a customer because they are not really doing products, engineering and manufacturing. They are exploring large infrastructure and from that standpoint, it shows that the platform is really a big data platform. If you look at the consumer connection, first in our home environment or life environment, we want to learn with that. On the millions of users we have today on HomeByMe, it's not an anecdote. The millions of users connected to the companies using Centric PLM to provide the right environment for apparel on consumer goods, this is not by accident. We at Dassault Systèmes want to help our customers connect with their consumers. And that's a good illustration. There is more to be discussed here, but don't consider Dassault Systèmes as a B2B company only. We are going to understand the consumer equation as we want to understand the patient equation from what my friend Glen de Vries wrote in a beautiful book called, The Patient Equation. And Glen will talk to you in a moment because a similar thing is happening in life science and health care with precision medicine, which is going even beyond personalized medicine, with research on therapeutics on the virtualization of all that process as well as the patient virtual twin because it's not only about complex therapeutics, yes, of course, that too, it is with the vaccine, but also surgery, which is, by the way, with oncology, the #1 death reason in the world with errors in surgery practices. So it's a gigantic space for us. And we have many game changer customers that we are going to talk to you in the afternoon, Jason here at, Celsion. And I took one word for each of them. Clinical trial to approval for one, synthetic control arm. You will hear more about it on really the medtech pharma solution because therapeutics are becoming complex. And finally, the virtual twin of human body at multiple scales to improve surgery at large. So in that context, what is happening in construction on cities? We are very serious. And 2 years ago, I shared with you the fact that we will change the game in that sector. We have customers today who are game changer and will become showcases for the future of construction on infrastructure. Why? Cloud mobility for the construction site, platform for everyone, including supply and logistic and manufactured inspired methods to build better sustainable buildings on an infrastructure. Aden is about to build manufactured turnkey hospital solutions in operation. They did it in 1 with China's construction, and we have signed a big partnership to make this happen across the world. With construction, applying the same platform mobility technique to really manage the construction project, not only the project management, but making sure that virtual twin experience can help resolve the construction process on site. And of course, you have industry shakers in that environment, new type of nature inspired living environment that creates extraordinary architecture and you have a lot of them here, including general contracting manufacture based building because the reality today is the cost of infrastructure is too high in many countries, and because in the last 40 years, this sector has been doing very little progress. The platform is changing that from this standpoint. Catalyst and enabler for the 11 industries we serve, of the 61 segments in which we want to have industry solutions process and roles. Why so? Because the platform effect, as Pascal will review with you, has gigantic consequences on everything we do, the way we develop the solution, the way we engage with customers, the way we develop, the fusion between development and customer online is happening. Also at Dassault Systèmes, to be a platform-based company as we speak, building up communities, which are online on the same platform as the platform, which is using internally with customers is happening, and I want to talk to you about that. But before I go there, there is a notion that I want to introduce to you. We are building universes, virtual universes. Let me take example. If you navigate today the 3DEXPERIENCE Lab projects around the world, what we have done for the COVID-19, for example, this is crowd sourcing of innovation around the world to build real projects on solutions for the problems the world is facing, whether it's about ventilators or other techniques. It's not only about capabilities. It's about content and services to do the job. This is what we call universe. We are applying it also to 3DEXPERIENCE Education, creating those universe. This is where the market plays is playing a big role to provide those knowledge and know-how online, whether it's a content or it's about people who know who wants to help you do the job. On that ecosystem that milieu of services is what we call the universes, and we are applying them systematically to all the industries we serve to build the power on vibrant value of user communities. So many of you have asked us, what are you doing to change the way you interact in the world. Remember, we have a gigantic customer base, beyond 250,000 companies, 25,000 more or 30,000 more every year. We are, as I speak, using our platform to redefine completely our CRM. All our clients, all our users will be connected on the platform worldwide in the years to come, and it's starting this quarter and will expand in 2021. All services will be provided online, click and buy, role engagement, process delivery or solution delivery, all will be exclusively online with or without partners. Partners are going to be involved in what we call, and if we loop a methodology, a platform-based journey where all players are online to serve the customer and the provisioning of knowledge and know-how is done real time. That's what we are doing. It's happening now, and this is why we believe that is ambition of 100 billion reachable market is really the new market that we are targeting. And Pascal, you will be illustrating why at the end of this afternoon. Back to you. And thank you very much for participating.

Thank you, Bernard. Let's open the call for a couple of questions. Operator, could you please open our first Q&A session.

[Operator Instructions] And the first question comes from the line from Mohammed Moawalla.

My question is really around how you go to customers and go-to-market with the platform. I know several years ago, you kind of changed your go-to-market, going more direct. However, one of the resistances was getting customers to also kind of understand and/or they would kind of reevaluate and look at the breadth of what you offer. Is there something that needs to change or that needs to be refined in that go-to market that would potentially then drive an acceleration in adoption? So how much of this is stuff you need to do versus where your customers? And are they more ready now? Or do they have to understand things better in a post-pandemic time frame?

Thank you. Thank you for the question. I'm a lucky CEO because I got Pascal, doing a lot of the COO job for almost a year now and even more before it was officially announced, and I've been concentrating my time in the last 16 months on the transformation of the company. And basically, what I would say is the adoption of the platform in this IFWE Loop. We invented it, this IFWE Loop context. This what we call buyer journey, user journey. It's something that we are deploying now as we speak. So it's not to be for tomorrow. It's being implemented this fourth quarter for the first time. We have hundreds of clients right now interacting with us daily, real time, to really adopt our solution, transform their company. So we believe that this is a gigantic opportunity that we never had before because before the customer, the CRM function was a clerical function. Now it's the center of the conversation of the action with our clients. So we're applying it for click and buy. We are applying it in role, former SOLIDWORKS [indiscernible] . We are applying it to process, and we are applying it for large customer, for example, we have an IFWE Loop with Toyota. We have an IFWE Loop with Boeing. We have an IFWE Loop with those big companies. And we run them and their perception has completely changed about the speed at which we can address the issues, but not only that, the platform is doing its own marketing because by virtue of using it for our interaction with them, they discover what they could do inside their company. So this is a big wave, and the terms and condition for the partners will be based on their contribution to the value they deliver to customers.

Next question comes from the line of Jay Vleeschhouwer from Griffin Securities.

A question on the strategy behind roles industry solutions, which is to say, how do you think about the impact of what you call roles in terms of perhaps revenues per user, the number of users which you've often said is among your highest priorities is to drive the numbers of users. Perhaps put that in some context, vis-à-vis the plan for the next number of years. And with regard to the platform is the channel, perhaps speak about that operationally. How are you thinking in terms of the underlying infrastructure or capacities that you, the DS need to support that kind of growth and delivery of services over the next number of years?

We have built a plan to be able -- I will start with last part because the first part of your question, Jay, is going to be quite illustrative -- well-illustrated with Pascal in his conclusion part explaining about the levers for role and processes. So I will rely on his way to articulate it. But we do plan to have at least 300,000 loops, IFWE Loops in place for all customers. We learned a lot from the MySolidWorks, which was a portal-based. But now in the context of the possibility of communities, conversation, tagging of information, we can use the platform itself to do our CRM. And the beauty of it is customer discover the new possibilities. They are a 1 click away from being able to provision roles and processes directly, online or interact with partners that will provide them the service. So this is a big play. It's -- we have been dreaming about it for years. But this time, we believe we can do it. As I said, for fourth quarter of this year, it's operationally being put in place. We initiated this with, unfortunately, the COVID situation because we discovered that in order to help customers online without visiting them, we could immediately use the platform, and it has worked extremely well. So this proven 6 months is now being instrumented to be in large-scale in 2021 and further, which is having a direct impact on the way we are going to remunerate the partners, for a simple reason. We see what they do and what they don't do. So we will compensate based on the outcome of what is done only. Pascal?

To stick to the schedule, I propose we take the last question for this and sessions. And anyway, Bernard will be back at the end for the final Q&A. So operator, if you could open on the last questions.

The next question comes from the line of Adam Wood from Morgan Stanley.

2 hopefully, small ones. We're hearing a lot of companies now really want to consume services like yours as a service. Where are you on being able to deliver the whole portfolio in that way? And then secondly, how much easier does it make it to adopt the technology versus running on-prem these IFWE Loops in a move to consuming [ Valeo ] platform. Again, we hear a lot this year, companies want quick fast ROIs to solve problems and not be long implementations?

So thank you, Adam. In short, all cloud customers of Dassault Systèmes today are part of the IFWE Loop process for them. So we can have real-time answers to their question. We can help them. In fact, many of the sales done through click and buy were done because we just showcased online what could be the solution to the problem. So by definition, for cloud-native clients, this is interesting setup. But we're not stopping there. We have 3 things happening. For a very large customer on the other extreme, many of them are now saying, let's have a IFWE Loop so we can change our interaction with you. And they love it. But the effect of that is significant because as we interact with them, even though they have on-premise installations, they discover that they could supplement -- and the case is a real case for a very large client right now with big numbers on the cloud. What is happening is they discover that the cloud could supplement their on-premise just because they have been using the platform to interact with us. So we basically have 3 things happening, and Pascal will come on that. One is native cloud; second is supplementing existing environment with cloud-based connected with the on-premise installation; and the third is what we call Power'By, which is basically to power their legacy applications with the platform, put the platform on their [ needs ] for everything they do. Big contracts are going on to make this possible and most of the game changes showcase I have illustrated here, especially in construction, are all full speed on the cloud.

Thank you, Bernard. It's time to move to the next section. So the next session is about Life Sciences & Healthcare. And it's a time to hand over to Tarek Sherif and Glen de Vries. The floor is yours, Tarek.

Thank you so much, Pascal and Bernard. It's a pleasure to join all of you today, albeit virtually. I wish I could be in Paris, as I love being in Paris. But given the circumstances, it is what it is. If you could please start with the first slide, that would be great. I think Bernard said it so well that our joint purpose is what brought us together. Like Medidata was always a mission-driven company. And in Dassault Systèmes, we found another company that really cares about impacting society and patients globally. I think as you will hear from me today and from Glen, and as the day goes on, we are much stronger together, and that's never been more important than at this time. When we came together a year ago, we could never have imagined the current environment that we would be. And our purpose and the life science company shared purpose of impacting and providing better therapies to patients everywhere couldn't be more important because in today's environment, antibody in society can be a patient or could be a patient. I'm very proud of how our industry overall has responded to the current environment. It's been all about science. It's about doing good science. It's about being agile. It's about being innovative. And it's also about safety and quality and the industry has shown how important it really is. I think seeing the therapies that are coming out, the vaccine announcement by Pfizer a few weeks ago and then yesterday, by Moderna was a very proud moment for us because we really have played a strategic role in helping companies bring vaccines to market at a rapid pace. I want to give a shout out to all of my colleagues at Dassault who work so hard to make sure that we reduce the time lines for getting clinical trials done, for helping the -- in the modeling of the disease, for helping to get distribution and manufacturing up and running in a way that will get vaccines to people around the world in a very timely manner. It's been both a very challenging time to execute in, but also a really exciting time for everybody. And I think we couldn't be prouder to be part of Dassault Systèmes and to be working with these great colleagues, to be working with our industry to help find a safe solution to the current pandemic and then to help find other therapies for other diseases in the future. I just wanted to check if my slides are up because I am currently not getting that, and I just needed to check with the control room if we're having a technical difficulty or not.

Tarek, what we see on the screen is the mission. So if you want to move to the next slide, you just have to say next slide.

Okay. Next slide, please. Because I'm just not seeing any slides, so I just wanted to make sure. I will do it from my own computer, you could me give me one moment. So I think we can go ahead to this slide on -- which is Slide #4, please. So I think I want to step away from the discussion of the pandemic just for a moment because I think it's important to also understand some of the dynamics that are happening in the industry overall. This is probably a period of the greatest innovation that's happened in life sciences in a very long time. The advent of precision medicine is giving us an opportunity to change people lives in a meaningful way. Having targeted therapies that improve people's lives, that save people's lives is creating an environment that we haven't seen before, and it's all based on a lot of innovation and a lot of great science, but also a lot of complexity. We're also entering an era where having a therapy in the market requires hard data and analytics in order for you to be reimbursed for that treatment. And so the result of that is that you require data earlier in your decision-making process. Similarly, the convergence of digital device and molecule also is driving that convergence of analytics and data. And so I think the time is right for a digital transformation in the pharmaceutical industry and the life sciences industry overall and in order for that to happen, you really need to have a platform. And we're going to discuss a bit more about that as we talk -- as I go through the presentation today. If we could go to the next slide, that would be great, please. So one of the things that's also changed in the current environment is that the interactions are shifting in terms of the patients at the center, the way the patient interacts with physicians or with their payer or with regulators or others or pharma companies has shifted. Patients are taking more control. They want more information. And so that's changing the dynamic again of how life sciences companies have to interact with patients. If you go to the next slide, please. We know it's a big industry. We know it's a strategic industry. I think the important thing to understand is that overall technology has historically played a relatively small role in how drugs are brought to market and developed and even in how they are distributed and ultimately commercialized. And what I mean -- it's been a relatively small role. What I'm talking about is that cloud-based technology is still a relatively small percentage of the overall spend that pharma companies and device manufacturers have, have, but that is increasing rapidly. And I think what we've seen is that with the advent of the current pandemic, it's kind of a turning point in the industry where we're going to see an even faster pace of adoption of technologies going forward. If you go to the next slide, I think it's important to keep our eyes on some of the big trends in the industry as well. Money has continued to flow into research and development and the process of bringing new therapies to market continues at a pace that hasn't really slowed down despite all the challenges, the execution problems that have come with the current pandemic. If you go to the next slide, we should now be on the slide, which really discusses how COVID is impacting life science companies. I think the big takeaway is much like in any industry, the current pandemic has impacted every aspect of the business. However, development is an area where it's had probably the biggest impact. To some degree, research in the lab, yes, during lockdown situations has created problems for our customers as well as there have been logistic challenges on the manufacturing side. But as it relates to clinical trials, what we've seen is a dramatic impact because if patients can't get to the doctor's office or aren't willing to go to the doctor's office or if they're on lockdown down, then you may not be able to start a new clinical trial. You may not be able to continue your clinical trial. And so that's presented some really significant hurdles. We've seen clinical trials ended. We've seen them deferred, postponed. But we also saw a lot of resilience. We've seen a lot of innovation from our customers who reacted and brought technology into the equation. Telemedicine, the use of telemedicine has increased dramatically. Using virtual trials has started to become a norm. And so the industry is adapting. Therapies were brought to people's homes, and they received their infusion at home. We were collecting data via sensors from people at home. And so there is a dramatic shift that's happening. The industry hasn't stopped. It hasn't slowed down. In fact, it's picked up in pace. We now know that you can start studies in 1/4 of the time than it historically took. It takes technology and it takes process change, but we're able to do that. Great example with some of the vaccine trials, Medidata was able to help and Dassault Systèmes was able to help. Our customers start trials in 3 to 4 weeks, where it typically took 3 to 4 months. We've been focused on making sure that we're collecting good quality data and how you do that? Via sensors or via direct from patient devices. You heard about myMedidata several months ago, and myMedidata is becoming prevalent in the marketplace because we're helping to collect data from patients directly. It's an important part of a lot of the vaccine trials that are going on. So even things like synthetic control arms, where you can synthetically create a patient using clinical trial data and increasingly, also real-world data allows you to recruit fewer patients, which means that you can run your trial faster and more efficiently. If you go to the next slide, please. I want to take a minute to just step back and make sure everyone has a sense for our history within this very special vertical. So both Dassault Systèmes and Medidata bring a long pedigree in our industry together. We've been working in science for over 20 years. That experience is extremely important because the challenges that our customers face that we can help them with need to really be understood. And you can't take a broad perspective on this. You really have to understand the science that's behind it. And both our organization have that understanding. And it's what's really made us coming together such a powerful force in the industry. If you go to the next slide, please. We are now 4,000 people spread around the world with a single purpose of helping to improve society and helping to improve science. Obviously, there's been a lot of investment into the industry. Thank you, Pascal and Bernard. But also, we bring a lot of industry knowledge. So one of the things that attracted Glen and myself initially in the conversations we had before we jumped to Dassault Systèmes, Dassault has a history of helping to bridge that divide to help that digital transformation in other industries, and that's going to be very important as the life sciences industry goes through its digital transformation. Go to the next slide, please. I think our footprint globally is impressive. We have #1 market share in life sciences. More than 50% of all the drugs are developed on our platform, more than 50% of all clinical trials, and I would say, a much higher percentage of the clinical trials focused on the vaccine development are currently being developed on our platform. We have hundreds of trials that are ongoing currently and more are starting, focused on finding a solution and a safe solution. If you go to the next slide, please. Our customer base has historically been life science companies so pharmaceutical companies, med device companies, increasingly, companies that are developing digital therapies. But in the future, I think we can see a future where our interactions with patients and with the health care ecosystem overall is going to increase. If you go to the next slide, please. It's important for us to understand how our customers define success. And for them, it's making sure that they really understand a disease and how it works, being able model it, making better go, no-go decisions, improving speed and quality, improving productivity. In the age of precision medicine, manufacturing is going to become very essential, much more essential than it has been historically because you're creating smaller batches and those batches, high in value, very complex to manufacture, quality safety becomes extremely important. And then obviously, our customers want to be sure that they can commercialize their products as well. If you go to the next slide, I think what brings -- what makes Dassault Systèmes so unique in life sciences is we have that full platform. We can meet the challenges and needs and create that ROI for our customers and we can help them to innovate better and to do better science. If you go to the next slide, please. I think it's fair to say that we are the only and most unique scientific platform in the current age of precision medicine. And we run the gamut from the earliest days when you're thinking about the kind of molecule you want to develop, when you're modeling it. I think you heard Bernard mentioned the fact that we're very much focused on creating that virtual twin. Well, you have to start in -- when you're first thinking about a molecule, you have to think about what it takes to create a virtual twin of a patient, of a heart, of a brain. But we are -- I think we have significant head start over the rest of the industry or of our competitors and we have a significant footprint. If you go to the next slide, please. I know all of you are very interested in how the integration is going. I think you can see it by my excitement, you'll see it by Glen's excitement as well that things going well. Despite the challenges that the pandemic has presented to us, and they have been formidable, but we are seeing alignment, functional alignment in our G&A functions. We are bringing our systems together but importantly, those are the things that you expect from us. We're also starting to bring our go-to market together. And we're seeing opportunities where our joint go-to market, the power that we have from the various brands coming together really create innovative solutions for our customers, and we're very excited. It's early days, but we're actually winning business based on our joint capabilities and creating new innovative solutions for our customers. And as I said, that is very exciting for us, and it really puts an exclamation mark on why we joined forces. If could you go to the next slide, please. I think one of the important things to note is that we hold a lot of data, its the IP of our customers, its patient data. We, as a company, Dassault Systèmes has invested a lot in making sure that, that data is secure, that our customers feel comfortable, that we meet the regulatory requirement. And in an environment today, actually, where there are a lot of bad actors who want to disrupt the system, I can say that we're very proud of our ability to safeguard our customers and our patient data. If you could go to the next slide, please. I want to close with just reiterating our financial ambition. We should be on Slide 20. The financial metrics that Pascal and I laid out last year of 13% to 15% growth, 200 basis points per year margin improvement and improved cash flow, we're very confident. I think we're executing well. We're seeing the synergies that we expected but importantly, we're seeing our -- the core of our business is very healthy. We continue to win market share. We run over 6,000, almost 7,000 clinical trials at this point. We've been taking market share over the last year in our core market but importantly, we're also seeing that some of our newer solutions, like myMedidata and like our analytics and AI solutions, database solutions are seeing explosive growth, albeit, it's off of a small base so don't get too excited too quickly. But we're seeing very healthy growth and adoption and that makes us feel very comfortable with the sustainability of our growth and our market share. And I think we are focused on making sure that the business sees the same kind of leverage that Dassault Systèmes has seen. And certainly, this year, we're seeing that, and we expect that to happen into the future as well. We're very excited and very comfortable with how the acquisition, with how the merger is going and I have to say we couldn't be more excited to be part of this global team and to really be having an impact on society and patients everywhere. I'm now going to hand it over to my Co-Founder and Co-CEO, Glen de Vries to speak with Vishal Mehta, who is from one of our great customers. I think they'll have a very interesting conversation. Glen, go ahead.

[indiscernible] Our management team, I hope would join for the questions and answers as well as Vishal Mehta, who is the VP of Clinical Operations, who hopefully comes up on your screen momentarily. Vishal has a really interesting career. He's been in very large companies like Novartis and Celgene. He's worked in the contract research organizations. And now is a super cool biotech. And so we couldn't be happier and have a great customer, but also somebody really understands the industry and who shares a passion for data and science with us. So with that, Vishal, maybe tell us a little bit about what you're doing at Autolus as kind of an introduction.

Absolutely. Thank you, Glen, thanks for that introduction. First of all, thanks to Dassault Systèmes for having me here. It's a pleasure to speak at your event and talk a little bit about the work that we do in the life science industry for the biotech space. So Autolus as an organization that I joined roughly about 2 years ago. And really, the driver of Autolus is we're sort of pioneers and aspire to continue to be pioneers in developing next-generation cell therapies, program cell therapies. And our focus right now is on T cell therapies, which many of you may have either heard through various news broadcast, et cetera. But this is the cutting-edge of where the life science industry is moving and where we're looking as the next treatment opportunity for various diseases but our current focus is on cancer therapeutics. So really a lot of work that we do, Glen, here at Autolus, resonates very well with what I just heard Tarek speak about in terms of precision medicine, that it sort of takes it to the next level of a personalized precision medicine where we're actually harnessing the patient's own immune system and their immunity to help fight cancer. And there couldn't be a better place today to talk about where the science is evolving and where we can partner with companies like Dassault and Medidata to really bring out the potential of next-generation therapies and deliver to our patients what's most important, which is a longer-term remission and potentially a cure for cancer.

So as somebody who started their career in molecular biology, I get very excited about cell therapies. It's a kind of thing that 25 years ago, we thought of as science fiction, and now we're actually delivering this kind of therapy. Meanwhile, while we have all this amazing biological technology that we could barely conceive of, we also live in this world that is completely transformed from a connectivity perspective, right? So we have all of this digital infrastructure around us, for example, everything we do in Medidata on the 3DEXPERIENCE platform. I know you're passionate about digital transformation, the same way you're passionate about the science. How, in your role, do you think about that kind of convergence of this connectivity and what you're doing from a research perspective?

Absolutely and a fantastic question there, Glen. Look, it is really about an era where we're sort of getting ourselves into a much more detailed understanding of the biology and the science that drives diseases. And with that, what we need to now do as an industry, as a life science industry. is really try to put the best tools and technologies together that can enhance the research and development of the products and bring these life-saving therapies to patients in the fastest way possible. And we talked a little bit about the pandemic and the impact that it has had. And many of us 5 years from now, we'll look at this pandemic and we'll also see the silver lining that it has had, which really is transforming the digital potential of the work that we can actually start to engage in and start to think differently, right? I mean, previously, we used to call these out-of-the-box thinking, but I think the situation here has really allowed some of these technologies, such as what Tarek was talking about on health care services, the wearables, right? I mean these are all fantastic tools and technologies that we need in our space to be able to really understand our product profile, our customers, which our patients are interacting with our product, how they are experiencing in our product. And at the end of the day, what's the benefit that these things are bringing to our patients so that we can continue to re-harness this information back into our research and think about the next-generation T cell therapies and other therapies that we want to bring to our patients.

Good. So you bring the patient in this context which I think it is also scientifically, really interesting and impacts the way we think about research, right? So we grew up both of us in an industry that thought about kind of population and looking for trends in large groups. Meanwhile, you start to look at cell therapies, like literally the ultimate manifestation of doing something that is targeted. In fact, it can be for 1 individual person. We have to go from populations to individuals. How do you think about personalized medicine? And not to give you a leading question, but part what Autolus uses from Dassault Systèmes is not just our traditional products for connecting to doctors and nurses, but also our products to connect directly to patients, myMedidata that Tarek was talking about. So how does that influence your thinking as the person directing all this research?

Yes. No, I mean, I think it's -- like I was just suggesting, it's an interesting paradigm that we're in. And the beauty for us as a small biotech company to work with a company like Dassault is really having an umbrella of solutions that we can actually architect within the conduct of our research and development plans and really start to integrate this, right? Because one of the challenges that we've always seen historically in this industry is how do we actually harness the data that we're collecting because the data seems to be isolated in different systems. There's very little connectivity in the past that we had with regards to [ cross-sell our ] systems and how we can actually use the analytics and the power of analytics to generate decision-making analysis that help us move forward. So there's a little appreciation that comes in with regards to understanding how young biotechs like Autolus can leverage the tools and technologies that Dassault has to offer and then really build that within our road map because you recognize that we're still sort of in the growth phase and there's limitations both from an internal infrastructure and a capability perspective as to how much of that can we actually deploy. But it's great to start building that road map so that we have a much more integrated technology platform that we can start to fully leverage as we start to become a commercial CAR-T company.

Yes. I think it's important to actually complement you and companies like you. I think there's this frankly, misperception in the world, that the larger the life sciences company, the more complicated their R&D projects are. And in fact, what is an indicator of how complicated your R&D projects are is how exquisite your drug is in terms of personalized or personal medicine. And so what Autolus is doing is probably on the cutting-edge of that level of complexity. And as you were talking about, what we do together, it really touches kind of all of the key -- of what I think of as pillars of how we about research in Medidata, right? So we have the research programs themselves. You have the studies. This is the traditional data capture, the way that we're working with, the physicians, the laboratories, whatever the data is going to be, then the pillar number 2, right, is really the patients themselves, whether it's a personalized therapy or a precision therapy or frankly, just a vaccine that billions of people are going to take, connecting patient has become a critical part of making tools for health care full stop. But then there's this whole third pillar, which is the data. And it has been so long that the way -- in terms of the way we think about data and turning it into evidence hasn't evolved that much in the life sciences industry. I mean, really, for a couple of decades, we would collect our patients with the drug and collect our patients in the control arm and compare them using the same old biostatistical techniques. And one of the things that, again, I know we're both passionate about. But we're changing that now, right? We have these [ slots ] strengths that bring all this data together and allow us to think about generating evidence in new ways. I'd just love to kind of get your thoughts about how transformational that's going to be for people, again, whether you're doing simple research or the kind of complex things that you're working on?

Yes. I mean I think there's probably 2 things that jump to my mind with that sort of thinking. One is what we're alluding to slightly earlier is the ability to zoom in and zoom out, right? Because we are in this -- in this mode where we are developing precision and personalized therapies. So for us to understand a patient level detail. And within the patient level detail, even the genetic mutation level detail is very important for us to assess that to the outcomes that we're seeing, but then be able to put these zoom out and look at it from a population perspective, whether that's the data that sits within our clinical trial databases or that's the data that we can marry from real-world evidence and synthetic control arms. Because that's the evidence generation that's going to be important to really allow companies like ourselves to move the needle quicker, right? It's not about having a 8, 9, 10-year development life cycle, where the science specifically becomes outdated by the time you actually get a medicine to a patient, the science has probably evolved into what Glen was saying. 25 years ago, we thought this was all science fiction, but there are certain things that are happening in the lab right now, which are truly science fiction, and you can't imagine how quickly they will be testing in patients and being commercially available therapy. So there is definitely a lot of opportunities that we need to explore in a very systematic way so that we can start to develop those insights. Deploy those insights. And from our perspective, work very closely with the regulators to start building the confidence that it is data-driven decision making. And we don't always have to generate large pools of population data in a very specific clinical trial, but we can actually harness the data that's available through other community measures and commercial metrics.

Yes. Actually, I think those 2 different dimensions of kind of how you can zoom in and zoom out on things are super important. Actually, it's one of the things that got us originally excited about the merger into Dassault Systèmes was this idea of multi-scale, which is one of the ways that 3DS has transformed so many industries. And if you go from the DNA sequence that's in all of our cells all the way up to the way we interact with the world and our cognition and our behavior and be able to look at an individual level at any of those things, again, we see examples of Medidata and BIOVIA. That's the key to understanding the impact of the science vertically and then horizontally. Just as we're saying, Vishal, we have to look at the individual, we have to look at the population and not just the population taking the drug, an even broader population. So being able to do that zoom in, in both those dimensions, I just think is critical to that future of science. And I can't stop myself, but to mention you, I think regulators are oftentimes like pointed to is the people who are slowing things down. And actually, we've seen now thanks to kind of silver lining. I hate to say thanks to, but with COVID, regulators are and have been very progressive in terms of saying, show us something new. In fact, not really to COVID-19, but glioblastoma, it's very difficult to manage brain cancer. The FDA just accepted another Medidata's client's application to use a synthetic control. So data from multiple clinical trials together. So again, I just want to highlight some of those things that you're talking about, I get very excited about them. One other thing that I would love to kind of get your perspective on is actually outside the sciences, just relationships, right? We all get to know each other. We all work together. You give us a huge amount of trust in terms of managing this most critical piece of, to your point, before revenue gets generated, all the IP that you need to get there, how do you think about even deciding who to work with? What's important to you as a customer in terms of how we present ourselves to you.

Glen, François speaking. It will be the last question. If we want to have at least the time to take questions from the attendance, right?

Okay. Great.

I'll try to keep my answer short there. It's certainly about the underlying evaluation is obviously the technology platform and the capabilities that the tech -- technology offers in terms of what we're looking to deploy within the work that we're doing. But broadly, as you said, Glen, it is about relationship. It's about looking into the eyes of our providers and seeing how they're thinking about these technologies. And I think what I heard earlier in the call was, what's the impact that we, as companies are having on society and that? Those are sorts of things that we just started looking for because short-term solutions and resolutions are important for us, and that's what we're in this relationship for, but also the longer-term evolution of this technology. Because we know that the tools and the methodologies that we need to be successful 5, 10, 20 years from now are going to evolve. And we can partner with companies that have the ability to evolve with us and to look at the designs that we're developing and a data solutions that the company that would be able to offer through their technologies and they really start to look at the intersection of what I call the marriage of the data and the science and look at that as an important attribute from a decision-making perspective.

Well, thank you, again, Vishal. Thank you for your business. Thanks for coming today, and we look forward to pushing the frontiers of science and data back together.

Thank you, Vishal. Thank you, Tarek, and thank you, Glen. We will now take questions from the attendance, probably 1 or 2. If we want to stay on time. Rouven Bergmann, Medidata, COO and CFO, is also joining for the Q&A. Operator, please open the Q&A session.

[Operator Instructions] And we already have 3 questions. The first comes from Stacy from JPMorgan.

So we hear that Veeva and perhaps some others are starting to move more aggressively into your area. Just wondering if you've seen any higher competitive pressure. And then perhaps. Are you sort of broadening your scope of products as well? And gosh, let me just go ahead and expand that scope question. Look, [indiscernible] has a pretty big vision for nothing less than, and I'm quoting here, the virtual twin experience of humans. Obviously, that's a long-term vision. I guess I'm just trying to understand what the company needs to do to go from -- or the R&D perspective, acquisition, whatever it takes to close that gap? And I was looking at the scientific platform slide. I'm very interested in what you're doing, go-to-market together, integration, you've mentioned that. But where do you think you are on that journey? And what else needs to happen?

So I'm happy to take the first part of that question. Glen, I'll pass the second half to you. I think, look, we've been in business for 20 years, and it's always been a competitive environment out there. There's always somebody new who has new technology or there somebody's established. I think Medidata and Dassault Systèmes together are a very powerful force in the industry. We have continued, as I said, to take market share in our core markets, whether you look at EDC or some of the other solutions that we have surrounding that. But we're now starting to come to market with combined offerings that aren't just Medidata historically focused, but broaden our footprint to the research side and also out to manufacturing. We're in the early stages of that. But what I would say is we certainly hold our own from a competitive perspective and do more than that because our market share has gone up, our growth rates have been very healthy. We have very satisfied customers, you've heard from some of them. But I think on the one hand, we are not -- we're not standing still. We're continually innovating and pushing the envelope. What makes us so unique is that we have so many things that we bring to market that are, I think given our experience challenging for other people who are new to the industry to keep up with, and then there's the data asset that we have, which no one else has in the industry, and is almost impossible for anybody to replicate. And as I said, we're starting to see more and more interest in the offerings that we have from a data and analytics perspective. And as we combine what we have in clinical data with real-world evidence data, that's a very powerful combination that creates real value for our customers. So while there are good competitors out there, there always have been. I hope there always will be in the future because it's what makes us good. And I think someone wise once said, "If there aren't competitors in the industry, it's probably not a good industry to be in." So we take everyone seriously, but we're also very much focused on executing on our business. And as I said, I could not be prouder of our teams who helped hundreds of companies with their vaccine trials. Nobody else in the industry was able to do that.

I'll just quickly add from the capabilities' perspective, as you heard Tarek say, I'll go through the 3 pillars that I talked about with Vishal backwards. Because quite eloquently you just heard, how much of a lead we have in data itself and in the analytics around it, which is ultimately what we're here to create and research, evidence that things work and are better than what's there now. As well as the research infrastructure itself across the board. Nobody has the capabilities that can match us and the connectivity to patients, right? Those are the core pillars that come from Medidata. But if you think of the life cycle of a therapeutic, and I don't care if it's a molecule or a medical device or it's digital or a combination of the 3. If you look at the Dassault Systèmes capabilities, we have the ability to conclude the design the discovery, the development of those therapeutics. We have the ability to manage the manufacturing and the logistics and the delivery, which, by the way, don't take my word for it. It's been in the news for the last 2 weeks. Logistics and manufacturing are one of the biggest issues in terms of getting medicine, whether it's a complicated one or a simple one to take us around the world. It's amplified because we're looking at it with COVID. And frankly, the quality systems that you need to manage that entire life cycle. So the same way that Dassault Systèmes was poised to and successfully transformed so many industries, I feel like we have the opportunity to do that here. And to Tarek's point, we never take competition lightly. We have to execute on bringing these capabilities together and delivering them, but this is what the world of life sciences needs in the future. And I feel like we're in the best position to deliver.

Operator? Next question, it will be the last one for the questions.

Thank you. There no more questions at this time. Please continue.

Okay. Thank you.

We have another question, do you want to take that?

Okay. So I propose we make the quick break. We will take 5 minutes. So it's 3:12, let's be back in 5 minutes, sharp, and we'll start with manufacturing sector. Thank you, Tarek. Thank you, Vishal. Thank you, Glen. Thank you, Rouven, for all the explanation. I think you share your passion, you share your excitement to be at Dassault Systèmes. And I think as you stated clearly, we are contributing to the society. Thank you very much.

Thank you, Vishal. Thank you for your support. [Break]

[Presentation] Welcome back. Welcome back to our Capital Market Day. Right now we're going to start manufacturing industry and Laurence Montanari will tell us about the automotive industry challenges and it's gearing for the major changes. I think Laurence's testimonial will have a lot of interest for you. Because Laurence joined Dassault Systèmes recently. And she's coming from Renault, and she was one of the first one using the 3DEXPERIENCE platform to develop a new concept of vehicles on the cloud. Laurence, the floor is yours.

Thank you, Pascal. Hello, everybody. Just a few words on myself. At last, Pascal introduced myself, but I start as a mechanical engineer in the [ engine room] at Renault in 1992. And shortly, I moved to the services to be closer to the customer, to the end consumers. And I held -- I held many, many positions in this division, a desk to the dealers, we call content management. After sales documentation and accelerate program director for the complete [indiscernible] I also was project leader 2 disruptive vehicles. The first one was a concept [indiscernible] , the pre-project of 3D. It was the beginning of the car sharing movement in [ 2008 and 8 ]. And previously, I was in charge of an experimental car, Renault EZ-Flex. It's an experimental car for the last-mile delivery, a small fleet of 10 vehicles to test it in the real-life in many, many configurations. And what it was, this was in fact, it was because we have done this project with a complete ecosystem, with the logistic companies, with the small players in logistics, with the territories and with their suppliers. I had the opportunity during this project to test the 3DEXPERIENCE platform. And I think that I was the first car of a traditional OEM in the 3DEXPERIENCE platform on cloud. And now I'm joined Dassault Systèmes. So I selected Dassault Systèmes because clearly, I think that this platform is really a major asset for the transformation of this industry. So let's move to the manufacturing sector now. 2020, it's a complex year, of course, you can see in the left of this chart. The year-to-year vehicle sales, it's important. The lockdown has an impact in Europe and in [indiscernible] there were 11.6 million vehicle loss. But we can see rebound in Asia, in China, and latest result of Japanese OEM are quite good. They are better-than-expected and better than recovery. And in parallel, they continue to develop, cumulate cars. And we expected -- we are expecting more than 100 -- exactly 115 new models or phases next year from these OEMs. So they continue to design, model, simulate and -- car and trucks in order to launch new models next year. And they have to do that because of the challenge they face for the next centuries. What are they? I wanted to share with you 4 challenges. The first one, the sustainability is not an option anymore. They need to develop vehicles, more respectful of the quality of the air and the resources of the planet. The second challenge is to renew as an authentic player of this century. Traditional OEM have a long history with [ gas ] engines. The third challenge is to share the public transport, the public space, excuse me, in cities because you have pedestrian, you have micro-mobility, you have cars, you have public transport, you have vans for the goods. So a lot of people, a lot of traffic jam, so -- and you need to share that [indiscernible] that in the future. And the last point to enlarge 3DEXPERIENCE with the end consumers. I will go into the details of these challenges. The sustainability. So the revelations have driven the decisions of the OEMs and the suppliers. They are to reach the CAFE targets in Europe, the [indiscernible]. And in the middle term, they have to take into account the complete life cycle of the car. So from material extraction to engineering production, the usage of the car with the users and the maintenance, and up to end-of-life with recycling and reconditioning. For that, the planet -- the platform, excuse me, connects all the domains. So on the left of the compass, you have the digital twin of the vehicle, with the challenges of electrification and [indiscernible]. On the top, the end-to-end possibility to consider the life cycle during the life cycle and the circular economy. On the right of the compass, the analytics in order to make the right decision through all information. And on the bottom, the real-world evidence in order to continuously improve the environmental footprint of the [ mobility's ] presence. For sure, this platform, the [indiscernible] platform connects the dots between all sustainability domains and with the digital continuity. Second challenge, it's the authentic player of this country. The system approach is key to develop the mobility experiences. New mobility experiences, [indiscernible] services to the end consumer, the value network in order to organize the cars and the environment and to optimize it. And the software development with continuously improvement. [indiscernible], it's a pillar of that. It presents at 7 out of 10 major OEMs today. And the extension to software and model design will double our potential of users. It allows to the customer to reduce the change request by 40% and to reduce the development cost by 30%. So system is important, not only because I tell you that, it's important because it's the way the entrants are using -- are developing cars. And we are not only supporting the major OEMS, but Tesla, [indiscernible], they are doing their vehicles with our solutions. The second point is to integrate vertically all the components of the car with the big talent of the electronics. The value of the electronics component will increase by 20% in 2025. So it's important to have a vertical integration of all our solutions. So ST components is using our solutions. Tier 1s such as [indiscernible], they are using our solutions and measure [indiscernible]. Let's move to the third challenge. How to share the public space, how to organize it, it's very important for the cities. I wanted to share with you 2 major points. The first point, on the left of this chart, it's a survey on the mobility. There are 3 major conclusions. The first one, the customer, the citizen are ready for the multi-modality. Transportation. Second one, [indiscernible] still continue to exist. And the third one, the autonomous driving is so important in the future. And this autonomous driving is based on 3 pillars. The first one is the car itself, the car with a sustainable powertrain with EV, PTV, hydrogen, [indiscernible] tomorrow. The second point is the connectivity in order to discuss with the environment [ infrastructure ]. And the third point, it's also -- it's, of course, the apps in order to get for the end customer to the right sharing of the mobility providers to provide solutions. This market is expected to reach $1 trillion by 2030. And Dassault Systèmes has the solutions to accompany this market and this growth. So we have a platform to integrate data to model future scenarios, operate and modelize and virtualize the mobility experience. And we already started to work with these players. So we started to work with the cities. We started to work with the mobility operators, and we started to work with the new players of this industry. So we are ready -- we are ready to operate and to design and to operate and to accompany -- the company is in this challenge. Last point is on the end consumer. It's so important today to be in a relation, direct relation with your customer. It's so important because with the online shopping, with the -- due to lockdown. You have to deliver market asset. You have to deliver products and mobility experience. And the platform today, it's the solutions to transform your digital train of the car into the digital experience of the [indiscernible] . And according my knowledge, the only one who's doing that. So it follows to the audience to personalize the debt to be present on the digital, social and web apps to selling mobility services and to organize the new dealers, the new dealers, the online dealers. So if I wanted to summarize, I want to share with you 4 key messages: the first one, 3DEXPERIENCE, close the loops between the marketing and engineering; the second one, with the system approach, we are ready to -- we are ready to double our potential of users. With the sustainability, we -- the platform is the unique platform of collaboration in order to -- to take the -- make the right -- to take the right decision with all information on sustainability; and the last one for the new mobilities, we need to have a holistic approach for the digital mobility, the virtual mobility of tomorrow. And the 3DEXPERIENCE platform support all this organization with a holistic approach. Thank you for your attention. And now we can open the Q&A session.

Thank you, Laurence. As you have seen, Laurence, she is with us. You came -- you joined Dassault Systèmes a few months ago.

Yes.

And you notice she's very sharp. I think your presentation was very well articulated. And if people still have doubt about our ability to reinvent the future of the mobility with our 3DEXPERIENCE platform, I think now you are the answer. It's -- we have time, which is the good news. We have time to take questions from the audience. [Operator Instructions] So operator, please open the Q&A session.

[Operator Instructions] And your first question comes from the line of Toby Ogg from Bank of America.

I just wanted to come back on the growth outlook for the manufacturing part of the business. I think the earlier slides suggested that your expectation is for 6% to 8% growth [ over the course ] of the mid-term period. And perhaps you could just give us a little bit of granularity on the specific end-market drivers within the broader manufacturing segment that get you to the 6% to 8%. And then also how we should be thinking about the phasing of growth within that segment over the 4 years?

You want me to take this one? Laurence?

Okay.

So the point we were trying to mention is, in fact, the crisis is not happening the same way everywhere. You notice, it was very explicit in the first slide of Laurence because she was telling us that, to a certain extent, the mix is changing. At the same time, so clearly, the production is shifting from Europe and Americas to Asia. At the same time, the production system is also challenging because producing an electrical car or a hybrid car or an autonomous car, it's not at all the same than producing a traditional one. Because the type of equipment are the same. The engine is becoming the battery. The complexities coming from the energy for system control measurements. So for all those reasons, more and more you need to use simulations to do the ramp-up to prepare the production sets. And also, to have these deep integrations between the process and the products. To a certain extent, we could assume that in the future, maybe the process could become the product. I don't know if you want to add a few things, Laurence.

I think we will see a major change in this industry, a major change. And the last change was the engine, is now the major change is all provide mobility. And mobility, it's totally different because you have many possibilities today to provide mobility, and we have to organize that for the citizens. So the change of the mobility is not to sell car and to provide a technical vehicle, it's to go to sustainable mobility for the planet.

The next question comes from the line of Charles Brennan from Crédit Suisse.

It's just one on the long-term health of the automotive industry. I'm starting to speak to some clients who are looking at Tesla and trying to compare it to Apple and the iPhone. And they're doing that as such a disruptive force in the automotive industry that it's going to lead to a number of automotive companies going out of business. How do you think about a contraction in the total customer base in your medium-term plans?

I think there are a lot of opportunities for new entrants today. Clearly, and maybe we will have some contraction, but we will have a lot of opportunities. This morning, I was discuss with a new entrant, maybe a new big player for the future. And we discussed about this project of cars, of mobilities. So maybe in one hand, there will be some contraction of the manufacturers. But in the other hand, maybe many, many new opportunities on [indiscernible] for the future.

And Charlie, to complement what Laurence is saying, we are convinced at Dassault Systèmes that the traditional players should reinvent themselves because there is room for both. Obviously, you took the example of Tesla. But they are not the only one, having, to a certain extent, a different business model. They are using the mobility. At the end, it's an energy company, right? So transportation and mobility is still services that pure player wants to fulfill. And most of the traditional players are reinventing themselves in order to fulfill these needs. The consequence of this the new product portfolio is very different compared to the past one. And this is, again, an opportunity for us because we have the tools, we have the solutions. We have the practices. We have the showcases. We have the proof point on the market that we know how to do it, and we know how to guide this transformation across the board. So I do not consider that this sector will be contracted, as you -- because against the new mobility is something which is tangible in the cities, but you still have a majority of the people living in the countryside and you still need, to a certain extent, a coexistence between different models, and there is room for all the players.

Can you give us a sense of revenue by customer. Where does someone like a Tesla sit versus a Toyota? Are you getting the same amount of revenue from Tesla?

It's not the numbers we are disclosing. But anyway, no, we are not yet at this order of magnitude for a simple reason. Toyota is by far the largest producers. And if you are producing hundreds of millions of vehicles or if you are producing 100,000 of vehicles, there is a big difference for us. So to a certain extent, no, the 2 are not comparable right now. Nevertheless, the order of magnitude is probably less reduced than the number of units produced.

The next question comes from the line of Jay from Griffin Securities.

One of the dynamics that has characterized your transportation business over the last number of decades, perhaps aerospace, more so than automotive, has been the problematic or project dependency of the business and your revenues sometimes continue to fluctuate according to where vehicle program or aircraft programs have been in their development cycle. Do you think that in the future, based on everything that you and Laurence were just describing that, that kind of fluctuation or programmatic characteristic of the industry may change, and therefore, your revenues might perhaps become somewhat less lumpy over time in transportation.

I will start to answer. So the regulation are driving the new programs of -- the new programs of vehicles. So -- and I know the new -- the new generation of regulation. And there are a lot of contents, and they need to have new programs. So that's why they need to invest, the need to continue to provide new cars, new vehicles for the future. So it's my fair question. So they need to simulate. They need to have a system approach. They need to produce cars, and they need to reduce the time -- the lead time to develop the cars to be more compliant with the regulations and to be more -- to increase their profit margin, in fact.

And to complement what Laurence is saying, the reality with the platform, we are addressing the larger scope. You are still prisoner to a certain extent to our deep penetration of the engineering part of those companies. But as Laurence explained very clearly, marketing is a new domain for us, and we are penetrating this domain. Manufacturing is also the one. So to a certain extent, if you look at the fluctuations you were speaking about, they are amortized or neutralized because we are equipping the large scope of all the enterprise, including the extended enterprise. So I think we are less dependent. We still have dependency, if you want, when we want to introduce new technology because it's much more easy to do it when we start with a new car program and a new airplane program, that's true. But on the long run, I think it's much more balanced between the different value stream. I think we have the time for last question.

No. There are no more question at this time. Please continue.

Okay. If there is no question, I think it's time to conclude with Laurence. Thank you, Laurence.

Thank you, Pascal.

And I would welcome Philippe Loeb. Philippe Loeb is our VP Industry for Life Science -- sorry, for Consumer Goods -- for Consumer Packaged Goods, Retail as well and Home and Lifestyle. And you're going to share with us the inside from the consumer industry.

Absolutely. Thank you, Pascal. Just so far [ half a second ], I had the new [ title ] . If that's the case, hopefully. All right. So I spent quite some time with [ real ] Bernard and Pascal recently. At Dassault Systèmes, we love numbers, we love big numbers. And I would like to start with a big number. And my presentation or big numbers and by BN for big numbers, but also for billions. 5.5 billion, this is a number of people who are fortunately because this is progress for humanity, going to be part of the global middle class in 2030. It's a big increase compared today. A big part of this growth, of course, is going to be in Asia. But this is very clearly driving our strategy. We are looking for big numbers. The consumer market for us. It's not just the cherry on the cake, this is the cream, I would say, of the cake. And very clearly, those consumers are in all industries. So if you look at all those industries, we have looked very carefully at all the segments, which are what I would say, consumer facing, some of them even being consumer driven. I'm thinking, for example, food and beverage or others. But later on, we are going to listen to EDF in program. Of course, they have consumers as well, and this is very, very important for them. Because equal to your questions on where is the source of growth, the growth will come in all those industries from the fact that basically as those players keep, develop the intimacy with the consumers. A few examples. The mission at our customers to connect to consumers is the mission of the brands. If you look at those brands in the middle of the circle, they are all our customers, and they are all doing things on the 3DEXPERIENCE platform, which very clearly are helping provide with consumers with a better experience. If you look, for example, at Southwest, so of course, now the airline business is in a kind of particular state. But Southwest is very well-known for the quality of the experience. They use our software for workforce management. And guess what? There is a clear correlation between the quality of the consumer experience and the profitability. Southwest is well-known for being the most profitable. So very clearly, those brands, they need to capture the growth for this new consuming class. And the growth is just huge. If you look at the spending of the middle class, EUR 37 trillion in 2017. This is a global number. And this number would be almost doubled, going from EUR 37 trillion to EUR 64 trillion in 2030. This means new experiences. And I'm really saying, experience is not just product, all the touch points. And this is going to represent 1/3 of the growth of the GDP globally. So of course, for us, this is a fantastic market. And if you are smart, and if we do the right choices in terms of how we are looking at all those consumer experiences, very clearly for the Dassault Systèmes, it can become a major additional revenue stream. We, of course, need, first and foremost, to understand the consumer. I go fast. But just to tell you, we are also doing more and more to the modeling and simulation not just of products, of experiences, but also of consumers. Glen mentioned, population earlier. This is not too far, by the way, as the 2 concepts. And what do people want? They want sustainable lifestyles. They want their life to be for the long term. They want to make sure what they are going to consume is ethical and also good for the health and of course, more and more, they are questioning the value of what they buy. So it's very important for the brands to develop things, which are going to be really centered on value like we can do on the 3DEXPERIENCE platform. Of course, most of you, I guess, are safe at home, I hope. Safety at home is a big, big topic accelerated by COVID, but not linked fully to COVID. We know that more and more, we are going to do things at home, which is we need to be working and sharing and spending more time. So this means things where we can invest, and I'm going to show you what we do in this area. And of course, connected commerce, maybe as I'm talking, some of you listening to me are, at the same time, buying products online. I wouldn't be surprised. I think it happens all the time. There is a big acceleration. We say that basically, in 5 years, we want -- in 5 months, we want 5 years of growth in this area. And of course, with all the installed base of our customers creating virtual goods, that can be leveraged to go to connect e-commerce. So what consumers value the most, really echoes with Dassault Systèmes and, of course, our purpose, harmonizing product nature and life. To do this, brands needs to get closer from consumers. It is happening today, large, accelerated growth. This is Centric PLM, an acquisition we did a couple of years ago. We are very glad and very happy to see that the number of wins this year is identical and we hope end of the year, it's going to be higher than last year. So the increase, the capture of the footprint is continuing. And what we have seen is a big, big shift to the cloud. 2/3 of the sales now on cloud for Centric PLM. And we have been doing our first 100% remote deployment. So it's about speed, speed, speed. Of course, speed is very essential when it comes to consumers. And also, it's about creating data, which can be leveraged down the stream, for example, for sustainable studies to understand the footprint, all the data that is managing by something today can be used for this. Centric is just at the starting curve. You see it here. We estimate. I mentioned the brands earlier, that 64,000 brands are going to engage with those 5.5 billion middle class consumers in the years to come. Of course, a big part of this growth is in Asia. China is right now the second largest country for Centric, so we see an acceleration of growth in Asia. And by the way, Asia is back to normal. I did the other day a video conference with a food and beverage company in China. And they were just like, I would say, like before, so hopefully, that's going to be our case as well. Other acceleration in retail. So Centric was well-known for fashion for their brand, but now because somehow managing a collection is not very different for managing an assortment. And because of the strong footprint of Centric in China, they could sign JD.com, which, of course, is one of the largest e-commerce player in China. And this opens the door to playing in retail. And we believe in retail as a natural extension of the craft of the brands. And by the way, sometimes the border between the 2 are blurring, which means more and bigger transaction for us because, of course, when you manage the full portfolio of a retailer like JD.com, it's easily managing tens, if not hundreds of thousands of references, many users, a healthy business for us. Speaking of healthy business, Centric is also accelerating in food retail. We believe in food, I will come back about food in a few minutes. But we can already say that we won a few accounts in food retail. Even in food manufacturing. Some great names, which I'm going to be very happy to review next year. And by the way, if you go on our website, you can ask for online demo. This is also what we want to do. If we look, Spirit, is also about making sure if a customer is interested. A few minutes later, we can run a live demo, so that basically, our customers go fast into the capturing the value they have from using our software. So that was for Centric. Meanwhile, Dassault Systèmes is growing very fast as well in food and beverage, and all consumer industries, by the way. This is a curve, you see it here. So of course, we started with smaller numbers compared to transportation and mobility of Laurence. But you can see a growth over 5 years on average of more than 20%. Very clearly, we want to keep this pace and we have, I believe, what it takes in order to accelerate. And the reasons for this acceleration are very simple to understand. In food and beverage, what people value today are 2 things. The first one is they want to make sure they eat healthy. All of us, of course, we are thinking about that. In the world right now, there are 2 race happening. A race, which is quite close from biotech, which is what we call food tech. And you see that the food tech market is going to be EUR 250 billion in 2022, which is tomorrow. If we play in biotech, we can play in food tech, that's obvious. And you see the second race with this a little bit complex graphic. This is what we call the race for protein. We need to feed the planet with healthy proteins. And healthy proteins, of course, is not necessarily coming from plants or animals, beef or chicken or pork. We are going to see more and more science-driven solution. And of course, for Dassault Systèmes, this big market can be captured easily because of the fact that we are in food and beverage and with our life science portfolio, we can play in bioreactors, we can play in the labs. If you count the number of labs in food and beverage, you are going to be astonished. Other thing you can count, which is also quite surprising are the number of plants. This is another multiplication factor of the consumer equation. And you see here that we can optimize end-to-end. We can optimize from the planet, the farmers, the factories, the retailers, to the consumers, the activities of food and beverage companies, and you have hundreds, thousands of EUR 1 billion revenue food and beverage companies over the planet, which are really being shaken up by the change in demand and also sometimes by already the impact of climate change, which means they need to redeploy everything, explore new ways of matching this demand. And we can do that with [indiscernible], more to come next year. But the benefits are very clear, and this is why it's an easy sell, reducing costs of sourcing, of production, of transportation, protection of the service levels, basically making sure you can answer to the demand and also agility in reconfiguration. So the 3DEXPERIENCE platform is a fantastic set for us to engage with those companies on things, which are super critical to them. This, of course, means also large deals comparable to what we do in some other industries. So this is on the B2B4C side. Now I want to talk to you about the consumers. So this is a picture I took this morning in my fancy house in Versailles. I'm lying to you. This is not a picture. This is a rendering. You see it. This is coming from our software HomeByMe. And the point is that HomeByMe, it's a software which has been designed to be used by consumers. Bernard mentioned earlier the fact that we have 15 million consumers using HomeByMe. In the world of the consumer, you can add 0 or even 2 0s to this. So really, we are in the world of big numbers. But also, we are in the world of excellence when it comes to the quality of the experience. This has been done by somebody who is just you and I, a little bit of talent in the way you set at things. But very clearly, we have learned a lot about engaging in direct connection to consumers. And this is fantastic because this gives us users, consumers on the one hand and on the other hand, we have so many assets, if you look just as we've seen, coming from our customers, existing customers. If you look at the cabinet, it's coming from specialty retailers or furniture and home good companies. If you look at all those consumer electronics devices, they've been designed in CATIA, in SOLIDWORKS in our software. We are investing more and more in buildings and so on. So we can connect the consumer, their projects with our installed base. So of course, this thanks to the 3DEXPERIENCE platform. But not only that. And I would say, even more importantly, we can connect to the people. And the people are essential in the success of this kind of project. And we want to connect not only the consumers to the brands and the retailers, but also the consumers to the interior designers. You might remember the case we presented during the last quarterly call with you guys, but also with a craftsman with a general contractor, so that the experience is exactly the one you want, but also delivered on time, on budget. In this, we are going to be on the side of the consumer. We want to disrupt this industry. We believe that the technologies we have are going to make a big difference. And I hope we are going to share with you more success in the years to come. So this is important because this is really a platform approach to the consumer centricity. It's not just about hoping that at some point, a consumer is going to buy a product from us. It's going very clearly to be about making them stronger and letting them express what they want and engaging in different kind of discussion, different kind of conversation with the brands and with the retailers. And one reason to believe for that, as I mentioned earlier, is that over the past months, e-commerce has accelerated its growth. And we know already that the growth of e-commerce was quite impressive. This is going to stay. And it means, of course, just like we are doing at Dassault Systèmes. We are now in the click-and-buy. You go and you buy products online, as introduced during the first session. Our customers are willing to do the same. And for that, we have fantastic assets. If you think of all the goods which have been created using SOLIDWORKS and CATIA. If you remember, quite a few years ago, we acquired a company named RTT, we created 3DEXCITE. Now with this incredible technology, we can leverage the assets, the models coming from SOLIDWORKS and CATIA and make them available for e-commerce for all kinds of scenarios. So as you can imagine, lots of potential. And already, we are preparing the step after and the step after is very clear. We believe in experienced commerce. Beyond e-commerce, we are going to see experience commerce, think of AR, VR, new devices, the leader on the latest iPhone, for example. This is going to accelerate probably faster than what we may imagine into experience commerce. So this is the end of my presentation. Just a quick summary. Big, big market, 5.5 billion people in the consumer class, all industries, we can really play there. So it's an additional revenue stream, not just in CPG, retail and home and lifestyle. Centric is going fast already that is obvious and the machine is working well, and we are predicting this machine to accelerate a bit like what we did with SOLIDWORKS quite a few years ago. We are already growing fast in food and beverage, double-digit growth, more than that 20%-plus in -- with science and operations optimization end-to-end on the platform. And we believe in the consumer, we want to engage in discussion with consumers. 15 million users. It's a good start, but it's just a start. And of course, virtual commerce is next. Thank you very much.

Thank you, Philippe, for this comprehensive presentation, and you are right on time. So a few takeaways. Nevertheless, before to take the questions. Why I pushed for having Philippe presenting these sectors. It's because I think the virtual twin experience is becoming a way to engage. It's becoming a way to engage for the consumer-centric industry. It's becoming a way to engage for all the people willing to develop experiences online, and you say a few word about experience commerce, and I subscribe to this point of view. And last but not least, you see more and more science in the consumer-centric industry. And the experience we have developed for other industries are very relevant and meaningful for those sectors. That's the reason why I wanted Philippe to say a few words. So now it's time to take a few questions. So operator, please open the Q&A session.

[Operator Instructions] The first question comes from Jay from Griffin Securities.

With respect to the B2B side of your consumer opportunity, could you talk about the connection, if any, between Quintiq and your consumer business, the premises that you may wish to have or should have some kind of supply chain back-end to your B2B side of the consumer business. And then on the B2C side, are you suggesting that DS may eventually have some kind of marketplace offering for consumers? Do you mean to go that route where you will take the marketplaces you introduced a couple of years ago for your manufacturing customers and perhaps repurpose that for the consumer market.

I will start with the second one because the short answer is yes, absolutely. This is where we want to go. And as you said, we need to repurpose. We need to adapt as well because engaging in a discussion with consumers is slightly different. But yes, we want to play in the connection between brands and consumers. On the first one, DELMIA Quintiq, it's a fantastic asset for us. Significant part of the growth I outlined in food and beverage is related to DELMIA Quintiq. And what they do, this end-to-end optimization, is extremely relevant in the sense of the fact that you -- if you just optimize the plant and you have to optimize the logistics or if you optimize your sourcing, basically, the world is changing so fast, and the pressure on margins are so big that you're not getting the ultimate value, and you are also quite static. So the 3DEXPERIENCE platform with DELMIA Quintiq makes it possible really to get an end-to-end optimization, a platform optimization, bio position to silo optimization. And we are astonished to see the reaction of food and beverage companies when they understand that this is actually doable. Of course, those are big transformations. So we need to also be mindful of how we introduce those transformation. But really, this is a part on which just on this, we could build a very solid growth plan.

Maybe to complement what Philippe is saying and especially on the first part of the questions related to the marketplace. Jay, we are already testing this model. In fact, you know HomeByMe, and you know the traditional way of selling HomeByMe and IKEA is a good example. I mean, we are selling to IKEA, and IKEA is promoting the services to their own customers. But we see more and more newcomers who are asking us to set up the environment for them to do the e-commerce, and we take a percentage of the transactions. We signed recently 2 or 3 deals, at least coming in my mind. And the COVID-19 situation is, in fact, accelerating this -- recently, I met a large retails company, and you know they have stores. Right now, not too much people are going to the store. So they have empty spaces, and they are repurposing some of the space to sell furniture, especially kitchen furniture. And they wanted to have this environment to be ready in a couple of weeks, not months. So we are already experiencing this. It's maybe too early to tell you where we are because we need probably a year to have the track record and the feedback to understand if it is a good model and if we can scale, but it's engaged, definitely.

There are no further questions at this time. Please continue.

You want me to ask the questions to Philippe? I could. We have 200 people connected. So clearly, I'm sure people can ask questions.

They are [ buying ] Philippe online.

There's another question just coming. It's from the line of Michael Briest from UBS.

Pascal, a good presentation on Centric PLM. Can you update us on what the earn-out terms are on that and what you might end up paying? And what the growth rate has been like relative to -- I think it was growing at 60% when you bought it in 2017 or when you bought it in 2018, it was growing 60% the year before?