Dassault Systèmes SE (DSY) Earnings Call Transcript & Summary

Okay. Welcome, everybody. I'm very delighted and happy to have you all here today at our campus for our Capital Market Day 2022 as well as everybody who joins us via webcast and online today. We have prepared a very comprehensive agenda and program for you today to articulate our ambition and our strategy to really position Dassault Systèmes at the center of the experience economy and highlight our proof points today, to give you evidence that our strategy is working. Of course, if I might ask to have the agenda up now? Yes, thank you. Of course, we will start, as you would expect with our CEO and Vice Chairman, Bernard Charles, who will take you through the great shifts of the sustainability and experience economy and will also highlight the evolution of the governance of our company. And then we will have Pascal Daloz, our COO, who will comment on our addressable market our leadership position and our opportunity to expand and grow. And in this context, Pascal will also share with you how we create a multiplier effect using the FV loop. Then thereafter, we will have a short break. And then we will turn to our Life Sciences sector, and I'm very delighted that we have Tarek Sherif, our Sector Board Chairman as well as Anthony Costello, our CEO for MEDIDATA Patient Cloud, joining us today, and they will both share with you how the future of health and precision medicine is creating new opportunities for Dassault Systèmes driving long-term growth. And then joining them, Sastry Chilukuri, our Co-CEO of Medidata, together with our client, Rajesh Malik, Chief Medical Officer of [ GT ] Therapeutics who will show you how we are using the synthetic control data and technology to change drug development and accelerate hope for patients. Then we will have Florence Verzelen, infrastructure and cities sector Board Chairwoman, who will explain our strategy to transform this sector to play sustainability at the core. Then we'll be moving on to the manufacturing industries, and I'm delighted to have Philippe Laufer join us today as our Chairman for the industry for the manufacturing industries. He will outline the tremendous opportunities and the challenges this sector is facing and our role to solve it. And then we'll have a quick break. And then we're excited to have our customer of Rivian joining us today, Barry Caldwell, Director of Geometric Development and Operations. He will explain how the 3DEXPERIENCE platform is supporting the transition to sustainable mobility experiences. This presentation will be followed by Toshiko Mori, our Independent Director and Lead Director for Sustainability Development. Toshiko will share with you our commitment to ESG. And finally, I will conclude the session with my presentation, highlighting our multiyear growth opportunity. Please note that we have 4 Q&A sessions. We'll take the questions from the room as well as from the webcast. And I would like to ask you to just ask one question and we'll be as concise and fast as possible to answer. So with this, it's my pleasure to welcome Bernard Charles.

Thank you, Rouven. So pleased to have you, Rouven with us. The Dassault system when we do acquisition, we can also do stellar speed promotion, which is your case, and you deserve it. It's a great pleasure for me to share with you a few things if there was a single message, I would like to say, it would be the following I think. And you know I've been in Dassault Systèmes for now a while, 2 generation of innovation or innovators. I have never seen our company being in a so strong position to build a long-term sustainable significant growth ahead. And I would add, no matter what I think I am very confident for many reasons that I was going to tell to you now that we have something to do to improve the world. You remember, many of you. We published on February 9, 2012, a statement that says we believe the product economy is over, is going to become an experienced economy and therefore, how do you create experiences? What is an experience. I think 10 years later, no one debated the fact that automotive industries are not focusing only on cars anymore. They are focusing on creating experience for mobility. I could take collection of examples around the world where this is happening. And the question is, we've invented the appropriate platform to imagine, create, produce and track experiences through the life cycle. That was 10 years ago. And the consequences for us has been gigantic creating a platform, industry solutions. And then in 2020, Feb 6, we said, well, we are doing that for physical goods, also for construction and infrastructure, can we and should we expand it for life science. Of course, that was a result of a big move in November of 2019 with the Medidata acquisition, the bet that coming together, we could create something different. And basically, over the last 2 years, Pascal and I, with you to reposition Dassault Systèmes system in the economy. We are now creating this virtual twin experiences in 3 sectors of the economy, serving 12 industries for things which are produced by humanity from [ shampoo ] bottles to satellites from therapeutics on medical practices and more to be discussed about that topic and the potential of it and also becoming a game changer in infrastructure. And this is -- I think you will recognize, all center on the human dimension of it, human consumers, human as workers, collaborator environment, to imaging and human as passion, new therapeutics, passion cloud, human as living citizen in an environment where we all want to see improved sustainable environment. So this is why people are joining this company. This is why we have a vibrant team and some of you who have been seeing the campus today, you see the ambience here and ambience is the same in India and all the campuses we have around the world. So there is something inside, which is very profound. And we believe that what governs our imagination is science. We have science at the heart of everything we do, which makes the entry -- the bar to entry very high for everything we do. Take the example of geometry. There is no system today that can produce as precise geometry for object as us. That's why it's 100% of the planes, and I could go on and give you examples like this. So we continue to work to have extreme quality in everything we do. That's the point here. The second point is if you admit that the world on the 21st century economy is an experienced economy, I think it's happening in your business, too, by your way. There is a second aspect, which is converging with it, which is the sustainability of the circularity of it and both going in the same way. For me, experienced economy means frugality, means consciousness about the use of the product or the solutions versus the look at the functionalities. It drives a frugal or a more frugal economy. And circularity is about designing things, understanding that there is always an end to everything, including life, which means that every object produced by humanity, they have an end on how at the end stage, things can be reused. It's trying to change the design world in a profound way. There is no other way to do it. We cannot imagine to proceed with waste without having waste by design. Waste by design is the new thought process to manage the [indiscernible] through life cycle. It fits very well with our purpose, harmonizing product nature and life, which is a very strong inspiration for all our R&D team on all the alliances we do around the world. More than that, we have sought imaging and create a model to make it possible. It's a kind of view of the world using math and data to do it. We call it the if we loop. The way to connect the dots in a way where you can create a spiral of innovation, observe the spiral of [indiscernible], connect the 2 spirals and create continuity. We call this the if we loop. So it's an abstraction model, but we are putting it as a technicality as an approach inside all our solutions, including the behavior of our platform. Because as you remember, we believe, and you know you can see the news flow about metaverse, and I've seen top consulting firm talking about it like if we were still doing planes with drawing, those guys have not seen that we have done metaverse for airplanes. I think they are not aware. And believe me, some of big names, and I was shocked to see some of the presentation talking about absolutely, frankly speaking, ridiculous description about where all this is going. The universe, the virtual universe for planes and cars were created in the past century between [ '80 and 2000 ], and we did it. And nobody can take this away from us. It's an incredible legacy and a strong heritage for the company. Extending the real world with the virtual one, making it additive is what is happening. And I think it's changing all the structural aspect of all industries and the economy itself. And of course, we feel very good because we now are getting equipments, mobility, cloud computing power to make this happen. And it's happening. So the definition of the frontiers we have attacked and modified are really happening, thanks to the mobility because now you can have the EXPERIENCE platform on the mobile. I was at the table with a few of you, and I demonstrated how it works. You can do design on a mobile. You can do life cycle on mobile. You can look at simulation results on mobile. You can get access to data, do data science on mobile. This is an amazing opportunity for us. I remember the time where our software was a mainframe. I remember the time where we got UNIX workstation. It was great because we could visualize. We could reveal in front of people the power of the imagination. And then we went through new kind of capacity to simulate and reveal the behavior of things. This is the way we have created over time. We have a gigantic installed base of clients, extremely loyal, extremely loyal with long-lasting loyal relationship. We are building with them. We love them unlike some of the players in the industry. We love our clients. And we put the preoccupation at the center of what we do. So this is why the Dassault Systèmes story on heritage is maybe unique and different from many other things that you can see. And in this new world where we can represent the imagination with the virtualization, I'm not using the world digitalization because digitalization is a technical aspect and the virtualization is a way to represent the imagination. It's not a small nuance. It's very profound. When you will have quantum computing, you will not have a [ digit ] anymore, by the way, as a side note. If you understand quantum computing, it's not going to be digit. It's not going to be 0 and 1, and it's going to happen hopefully sooner than later. So this is why the [ shakers ] of each of the industries you serve are adopting our platform in a big way. And we see them now. You are going to see Rivian today. We had an amazing presentation of aviation doing electrical aircraft last week. But you see Tesla --Now Tesla becoming a standard customer for us. There are a newcomer, creating new approaches. And you see that also in life science with Moderna, BioNTech and many others, and you will also have a great presentation here at this event, and you see a lot of names here. And what makes us different is we are connecting the dots between imagination, science, new possibilities, evaluating how to do it, simulating how to do it, creating the environment to produce them, connect the suppliers together, and then watch and look about how those products and services are being used through their experience in the real world. We have generalized the idea of real-world evidence that we learn from the med sector to be applied to all industries we serve because it's a very useful concept, modeling, simulation, data science, all coming together. So established players are also adopting it. Last week, we got an amazing presentation about Skunk Works work, the most secret things on the planet on the fact that they have adapted in a gigantic way, our platform, but you see here the more official things we can present with many, many customers now adopting the 3DEXPERIENCE platform because it's a game changer for what they do. You see we have done Bouygues, Land Rover, Renault, we mentioned Toyota, we can put the long list, but really the adoption of the platform is a game changer for them. And the reason why it's taking time is because it's a massive transformation for the organization, new jobs, new role, new processes, new organization, new KPIs for their performance. Why? Because they need any way to create their new portfolio, which is not more of the past but massively different solutions. For me, the manufacturing of tomorrow will produce experiences. Not good, experiences directly only. That's what is happening when you do a site for mobility. You have the object, the vehicle and you provide the service for mobility. As an example, and many of those could be taken from that standpoint. We continue to focus on education on labs around the world. We have a lot of start-ups using our 3DEXPERIENCE platform to create things never created before. Every quarter, we review them. We select them and we decide the one we are going to sponsor. Millions of students are learning our approach to a new way of designing experiences, producing them. Millions, [ about ] 10 million from what Pascal told me the other day, and we continue to expand that every year. And of course, we put certification process because as Einstein said, the ultimate of knowledge is experienced, welcoming experience economy, welcoming the experience company, Dassault Systèmes. To do that and create the next 20 years, we have set up and grown a team I am so proud of. And that's the team of the theme of the road show. I'm going to do in the next day. I don't do many road shows, as you know. I did them in '96 when we did the IPO, a few after and then I transferred that responsibility to good, competent people to speak about it but I'm going to be back again because, of course, as you know, our Chairman is going to turn 85, the founder, Dassault Systèmes, Charles Edelstenne, my coach, one I love very much, and I've learned so much with him. He's going to turn 85 in January. So we have already established a transition since 2016. But people don't watch details. Since 2016, I am the Vice Chairman, which says if the Chairman is not there, the Vice Chairman is the Chairman. So there is no new news in some way. And I've been working with Pascal for 20 years now or even more. He has taken so many different jobs and built up an incredible competency and the team around Pascal is really a very impressive team, new generation of leaders. This is what also it takes harmony, not only in what we do, but how we do it with the team. So you have the dates here about the evolution of the governance, 0 surprise, all documented, prepared over the years, with new members selected and growing and having the same vision about where we want to go. So the heritage and the ambition are coming together. You know how it's represented with the incredible legacy of what we have done. We have done metaverse before metaverse was even spelled. And we are exploiting them at full scale. And we are going to expand and create virtual twin experiences for the what, the how, on the who, how companies are working. With that Pascal, you have the floor because I'm sure you are going to tell us more about how we are going to make all this happen.

Thank you, Bernard, and congratulations again for what you do. Thank you very much. Thank you very much. So good morning, good afternoon to all of you. It's really a pleasure to be in person. I think for the one who had the chance to have the dinner with us last night, I think it was entertaining, I guess, may be interesting, but for sure, convincing, I hope. So adding some perspectives to Bernard's presentation, I would like to highlight in the next 15 minutes, how we will be able to execute these visions Bernard just described at scale and in a sustainable manner. That's the topic of my speech. So first, let's start with what's happened since the last time we met, Capital Market Day, November 2020. First of all, I think we delivered a strong performance. And I hope all of you, you are in agreement with this statement, not only because despite the challenging macroeconomic environment, we deliver the numbers. It's because also I think those challenges reveal the value of what we bring to our customers. And not only in the manufacturing sector but in the 3 sectors of the economy we serve. That's the first point. The second one, I think we have strengthened our position in the market. And again, it's not only from a market share standpoint, and I will come back on this but also from a mind share also with our customers. No one is arguing anymore about the value of the platform. It's a given. The last -- the third point is, I think, we have successfully integrated MEDIDATA, and you will probably see in person, the people who join us and testifying. And against if it has been highlighted by the success of the life science platform, the ability to fasten the vaccine development for sure, but also leveraging the pool of talent. Tarek is leading the Life Science sector Board, Rouven is the CFO of Dassault Systèmes, just to name only the two. And finally, Bernard said about a few words. We have set the leadership to deliver [indiscernible] divisions and execute it at scale. So let's start with the addressable market, right? That's probably the first question. For those who follow us for a long time, you know that it's in our DNA to explore new scientific and technology barrier, frontiers in order to help to solve industrial challenges. But the most important thing is at each step, each stage, we have been able to double the size of the addressable market. And I think with the new horizons, the virtual twin of experience will allow us to triple it to reach EUR 100 billion. That's the addressable market we are serving right now. Now this addressable market is split in 3 different sectors of the economy. And if you look at all of them, it's a vast growth opportunity they are representing. To make a long story a short one, we can easily double the addressable market in manufacturing industry as well as life sciences and health care. And we're only covering 1/3 of the Infrastructure & Cities market, right? That's the reality today. Now looking at the leadership positions. While we are expanding the addressable market, at the same time, we have built a unique position over time. So in the manufacturing sector, we are the clear leader with a significant gap compared to the others, and we continue to gain market share at least winning [ 0.5 ] points market share per year. In the Life Sciences & Healthcare, zooming on a drug and medical device development life cycle, which is really the market we serve, right? We are also the leader, and we are -- we have expanded by 2 points in the merge with MEDIDATA. In Infrastructure & Cities, we are the game changer or maybe you will call it challenger, but I would prefer a game changer. Why so? Because we are disrupting the landscape, the competitive landscape with the platform approach. We are building right now emblematic references, and you will see some of them, which I think will give you the reasons to believe that this will be at scale. And for the time being, more importantly, it's not the market share for us is the share of value, how much value we are creating for this entire industry. Now how this is translating into growth perspective? And again, thanks to the well-diversified market and competitive positioning, we are anticipating a 10% revenue growth in average between 2021 and 2025 and how it is split between the different sectors. If you look at the manufacturing sectors, representing almost 70% of the total software sales, I think there are drivers like the imperative of sustainable development, the profound change in consumer expectations, which are implying deep transformations. And that's the reason why we are convinced we can grow by 9% to 10%, the revenue we do, outpacing the market's growth. In Life Sciences & Healthcare, accounting for 20% of the software revenue, we are targeting a revenue growth between 13% and 15%, thanks to the contribution of MEDIDATA, of course, but also to all the other solutions. And you will see in Tarek's presentation that they are becoming a reality in these sectors. And finally, in Infrastructure & Cities, which represent roughly 10% of our software revenue, the challenge is to develop resilient, safe and affordable infrastructure, and we are targeting a growth between 12% to 14% versus 10% for the market. That's for the growth. Now looking our growth strategy. We are also activating the operational lever. And you remember, at every earnings, I'm sensitizing the growth strategy amongst the 2 levers, what we call the value app, which is how we increase the value to our large installed base and the VALUE WIDE is how we expand the footprint to new customers. So let's zoom first on the VALUE UP. There are 3 components. The first one is how we expand the domain coverage. And if you just -- I put some statistics, but just look at the manufacturing domain, just to pick one of them. It's a huge opportunity for both direct and indirect engagements. Second thing is the platform approach imply a new way to rebuild the value to our customers and we call it value engagement. In 2021, we have delivered 140 large transformation projects, which are really complex because it's not only an IT problem, it's how you transform the organization at large. And more than 80% of them were on time, which is also extremely important, given the level of investments those companies are doing. And along the size, we have doubled our consulting signing revenue because more and more, what we do is not only to deliver the solutions, but the best practice attached to it. And we need to advise our customers how they could transform themselves and how they should do it. As a result, looking at the deal value, we are doubling the value each time we engage with industry solution approach. That's for the VALUE UP. Looking now VALUE WIDE. First of all, cloud is really a way for us to reach new users with new usages. And we are ready to accelerate without jeopardizing the business model. And I'm assisting on this. Rouven will come back to this, but this is extremely important. Why so? Because today, we have more solutions available on the cloud that we have on-premise. So basically, the level of investment in terms of research and development is behind us, first of all. Second, we are offering several paths for our customers. There is no one single path to move to the cloud, right? It's not the same pattern for a large corporation than a newcomer for an industry which is not equipped for the one which, as Bernard says, been starting to be equipped a [indiscernible] almost. As a result and the last point, which is also important, if you look at the uptime performance, we are the highest standards of the industry with 99.98% availability. So clearly, everything is ready to deliver the target we set up, which is achieve 1/3 of the software revenue on the cloud in 2025. And again, I'm insisting with the same level of profitability. We also continue to displace the competitions. And again, with a very high ratio rate against all of the competitors and on average, it's more than 80%. And as a consequence, every year, we are getting more than 20,000 new customers. That's a reality. And if compared with some of our competitors, it's almost sometimes the number of customers they have for the entire industry. So in addition to this, I think something is happening. We have introduced the 3DEXPERIENCE platform in 2012. But at the beginning, we were focusing on the left side of the innovation cycle, right? We were symbolizing by the [Pro]. But specifically to develop, produce, deliver perfect product and services. But it's not enough. As the economy is becoming circular, it's time now to include not only the supply chain but the entire value network, if you want to deliver the experience as well as now to start to put into the loop, the end users. Whatever the end users is a customer, a patient or citizens. So more than a long explanation. I think live demo is probably the best. And I'm pleased to welcome on stage with me, [Florack Dominique] who is leading the research and development for Dassault Systèmes. Florence, you have the floor.

Thank you, Pascal. Good morning, and good afternoon. So as Pascal said, in the edge of experience, global transformation in how we invent learn, produce and recycle is happening. I propose today to discover how the 3DEXPERIENCE platform on the cloud is a catalyst and enabler of such transformation, fostering sustainable innovation. Let's start with the Sustainability Innovation Manager. She gets an up-to-date and accurate assessment of the environmental footprint, AI-based synthesis of trusted and scientific knowledge. One click to set consistent objective at the level of each subsystem. The 360 sustainability data science experience is available in the work environment of designers. Design, simulate and produce with instant sustainability feedback. At any change environmental footprint is updated, leveraging real-world data, alternative comparisons helps engineers make data-driven decision. Let's discover now how the virtual twin experience is enabled to invent new sustainable materials, reducing the [Ecobuild] extraction to recycling. The platform provides the multiscale scientific virtual environment to model, simulate and compare new materials from macro to nano from final composite material to the resin chemistry, it ensures that the material deliver on its promise of sustainability while preserving the structural performances. Another way to minimize your environmental footprint is to lighten parts. Our cognitive augmented design technologies optimize the shape to reduce waste, while ensuring structural and sustainability performances leading to global cost reduction. Let's discover now to predict in the virtual world, the energy consumption of the real world. Simulate, improve the aerodynamic performances, leveraging maxim technology. And thanks to the Cybersystem definition, compute the accurate efficiency of the new design. Moving to production, the virtual twin experience of global production systems enabled to scientifically assess and minimize the [ Ecobuild ] of equipment, shop floors, supplier sites and logistics.This all complying with local sustainability regulations while ensuring agile and resilient production. After several years in operation, the aircraft is dismantled. The parts serve as a raw material for new usages fueling the circular economy. Powered by the platform on the cloud, virtual twin experiences, which combine virtual 3D modeling and simulation with real-world evidence, provide science-based consciousness to all stakeholders and help our clients enter into the circular economy. Now moving from experience creation to experience in operation. Let's discover with a few moments of life, how the platform empowers [indiscernible] in the company, connecting the dots, people, data and IDs in order to increase collaboration to accelerate innovation. Let's start with product managers who need to understand market trends, competition and consumers' expectations. AI-based data science experiences of heterogeneous data such as web, news, social networks and enterprise data provide any user across the company with science-based and actionable insights. Leveraging semantic analysis and natural language, product managers engage an intuitive conversation with data in order to identify sweet spots and trigger the right innovation project, bringing people together in spontaneous conversation and set up the brainstorming session with 3D WhiteBoard to boost innovation while building a common memory. Innovation requires a skill, thanks to the platform. Hiring managers benefit from an experience tailored for talent identification combined with the 360 understanding of the skills evolution inside and outside the company. The platform empowers the collaboration all along the tenancy notification process, including concurrent edition of contract document or any other office document. Processes are executed in compliance with company policy and optimized to remove bottlenecks. Automation, definitely, removes frictions and new [list] tasks all along the way. Talking now about compliance. How to set up the ISO certification related to energy management, with the platform knowledge and know-how, such as norms and standards are capitalized and shared to all stakeholders. A predefined projects and share a successful edit. The energy consumption is closely monitored from the individual equipment to the entire site. And finally, energy savings are nurtured and planned in a collaborative pipeline Once validated, the execution is struck and the effective saving our measure, thanks to the 3DEXPERIENCE platform and the local approach, business users get started right away with ready-to-use business experiences crafted for their functions. They benefit from the data science intelligence they need to take informed decisions. As said the platform connects the dots people, data, IDs, breaking silos inside and outside the company. Now let's discover how the platform empowers everyone in their private life such as consumers within [Bentley].[Bentley] provides to people a set of experiences to create sustainable, comfortable, safe on all their life. It's vibrant communities, creating amazing content that inspires people to imagine how to model and furnish their place. If they vacate, they can rely on interior designers, who will provide them the perfect solution fitting their room and their taste. Otherwise, [ AmbiaI] AI, leveraging the millions of existing projects can imagine within [ Sugon] several proposals once again, fitting their room and their taste. Thanks now to the virtual twin of their own, consumers easily engage with own retailers, whether they are specialized in kitchen, bathroom, storage or simply selling furniture. You know what, more than 25 millions of people have been already experiencing the [unbid] universe to model and decorate their homes. And this community is a fast-growing one. To conclude, in the edge of circular experience economy, the platform, a proven science-based innovation platform on the cloud and ensures the success and rewards of all stakeholders from enterprise to people while fitting their respective business and sustainability commitments.

Thank you, Florence. I think this demonstration are really convincing. And they are the proof point that we continue to invest to prepare the future. So as you understand, the platform is not only a way for us to be a game changer in the current competitive landscape, but it's also a multiplier. It's a multiplier to expand the value proposal from circular -- from linear to circular economy. It's being reflected into the experience economy, but more and more into the sustainability as well. It's a multiplier also because it's a way to expand the audience by connecting people, data and ideas, starting from the industry professional, the expert, right? The one we are serving in the beginning, moving to all the business community and ultimately, to connect the consumer, the patient and the citizens. And this is -- this will be our next frontier. That's it for us for these sessions. So back to you, Rouven, I think, for the Q&A session. Isn't it?

Right. Thank you, Pascal. And let's start the Q&A session. Bernard, I would like you to come up and we start first with some questions from the audience. If you can get the microphone. Yes, the first question. .

Amit Harchandani from Citi. Bernard, you made an interesting comment that you were doing metaverse before metaverse was being spelled. Having said that, it's become a topic of discussion over the past 2 years, definitely attracting a lot of attention. So my question is, how has that changed the conversations you're having with your customers? Has the greater emphasis on metaverse introduced new discussions, new applications, maybe new industries where you're starting to see more doors open for your solutions?

Well, I think simply said, we -- I can answer 2 categories of attitude. One category has been benefiting, understanding, transforming the company already not with digitalization, but with the representation of what they do, the virtualization of the plane, the car, the object, the shampoo bottle, what do we do with P&G, for example. They said, well, it's interesting, but what's new? That's one category. They understand how they are going to exploit that to create new environment for selling, marketing when the quality of certain human-centric situation will be easy to reproduce. But there is nothing new. And then you have another category, which I will call the ignorant category. They have no clue that the world has been evolving with massive virtualization of design and production. They don't know it simply said. They are still PDF on office documents type companies, and they consider this as a revolution. It's a provocative answer, but I think it's the reality of what I see.

Jay Vleeschhouwer, Griffin. In your prepared remarks, Bernard and Pascal, you referred to industry solutions, which, to me, seems one of the more interesting and perhaps differentiable attributes of what you do. But the company hasn't really spoken much in detail of the business or operational impact of solutions as compared to, let's say, your historical, let's call it a la carte approach to selling. So it would be very interesting to hear from you about the business impact of Industry Solutions, in terms of the various industries, I could -- we've asked you about the life sciences strategy. Perhaps you could also talk about that approach for other industries? And how does it affect your R&D, for example? I mean, you had a brand-oriented approach to R&D, industry solutions affect how you engage in R&D.

Thank you for the question. Simply said, the end result of industry solutions is that we have newcomers doing airplanes now, doing it with the vanilla solution. They use our industry, they just do the plane, the entire plane without adding anything to it to the solution we deliver. Same for EVs. This has never happened before. There was always legacy connection with systems. And now it's so simple. If you look at the aviation or vertical takeoff companies, new companies which are doing that or even EV companies, they are basically using the native cloud [parametrize] to just run their entire business. That's the difference between before and after Industry Solutions, and there is no one in the competitive landscape that can do that. And really, the effect is the numbers that Pascal presented.

And Jay, I think the way we have articulated the portfolio around role, process and solution, it's a way to give different output. For the role, the goal is really to empower the users. At the end, what we measure is really the productivity gain. They can do more with at least the same level of investment and sometimes they can do more with less. Then at the process level is how you do things right the first time because in the collaborative environment, you have to orchestrate many different worlds, many different organizations working together. And now having 1 single source of truth is becoming extremely valuable for them. And at the solution level, we are impacting the economics of the company, really, the business model at large. And as you can see in this current environment, many companies declare they want to have the services part of their product or services attached to their product to become, I don't know, 1/3 of their revenue in the future. But to do this, they have to reimagine the entire company. And having the virtual twin of the company is becoming a necessity for them. So that's how we are encompassing, if you want, the different set of value. And we have, I think, a complete KPIs for all of them. And you will see in the following presentations, in life sciences, manufacturing and infrastructure, they will come back and give you a concrete example.

Do we have any questions here on the other side of the room? No.

It's James Goodman from Barclays. Fantastic to see the 2024 targets reiterated this morning to hear your confidence in the presentation around sustainable growth, I think you said no matter what Pascal. In VALUE UP, you talked about the doubling in 3DEXPERIENCE penetration to 2/3. I think you've talked about that by 2025. Can you tell us what the drivers are of the acceleration of 3DEXPERIENCE penetration now which parts of the portfolio and how we should think about you achieving that level of penetration by '25?

Okay. So I think for the vast majority of the large accounts, we are already set, right? We engaged with them almost a decade ago. And I was stating in my introductions, it's not anymore a topic of discussion. And the question is much more how we extract the maximum of the value of the platformization of the industry at large. So and again, not all of them are yet fully deployed because certain industries like aerospace, you have to go program by program. But at least for everything new, they're launching, it's already a reality. Where we still have work to do is through the partner. I think it took some time for them to understand the value of the platform. So I think it's behind us now. But now they need to convince their own customer about the value of the platform. And it's a different way to engage. It's a different way to articulate the value. It's a different activities also for them. It's much more consulting than pure IT implementation, especially if it's on the cloud. So when you do this and you summarize, I think we are on the right track to deliver the commitment, right? I crafted a long time ago. which is 2/3 of against what we used to call the PLM market before because when I stated this commitment or this objective, it was before the acquisition of MEDIDATA, right? And now having expanding into a new vertical where MEDIDATA is the platform, right, by and large. I think if you do the sum, we will probably overachieve the target because the new industry, to a certain extent, they are already platform-based. So that's from a momentum where we are.

Neil Steer from Redburn Partners. Pascal, in your presentation, you obviously reiterated your cloud targets, but once again, was specific that, that will be achieved with no disruption to the margin and the profitability. It's obviously become quite a topical debate in the market with other companies, highlighting the impact and the challenges they're seeing. Can you just describe why you're so confident in there, being no disruption to the margin target as you see that cloud adoption?

Neil, I will just say a few words because you will see in Rouven's presentation, he will address this topic at large. But just one data point for you. We are already doing more than EUR 850 million in the cloud, which is much bigger than any traditional competitors we have, right? Real cloud -- when I say cloud is we are managing the services, the online services on behalf of our customers. It's not us selling a license and our customers implementing with the cloud architecture. Have you seen a pressure on the margin? Have you seen a different CapEx? I don't think so. So I think we are already at scale guys. And why I'm repeating myself on this topic, the investment is done from a research and development standpoint, and the market is moving progressively because there is no way that a large company could shift overnight to the cloud. They have to take care of the legacy system. This is a benefit against no doubt. All of them, they have a cloud road map between 5 to 10 years for the longest, and they will move -- and we will progressively substitute the traditional, I would say, on-prem revenue in the cloud. That's -- but you will have more details, you will have basically reasons to believe of what I'm stating with Rouven's presentations.

All right. I think that's a very good transition for us to conclude on this Q&A session. Thank you for your questions. I will just check with my team because we are right at time actually for the next session. So I would propose that we skip the break and we continue with the Life Sciences sector, right? You say on time? You just started. We don't need a break right now. So with this, I would like to ask Tarek and Anthony to come up on stage.

So it's really an honor to be here with all of you today. I had a great chance to speak with many of you yesterday evening and earlier this afternoon. And I know there's a lot of enthusiasm for the life sciences sector, also a lot of questions, which is why my voice is a little bit horse at this point. But I hope what you take away from our presentation, Anthony is joining me on stage. I'm really pleased about that, is that one, we're very confident in our multiyear plan that we're going to achieve the results that we expected. And we are incredibly enthusiastic about the opportunity that is presented before us. And I hope that when you've seen our presentation, and you see how excited we get about the things that we're going to be doing and that we are doing today that you too will come away confident about the plan as well as excited about what Life Sciences can bring for us. So I think it's always important to reiterate our mission because when you think about Life Sciences & Healthcare more broadly and now I've stepped into the role. As you -- I think many of you know, I was a co-founder of MEDIDATA and formerly the CEO, but now I'm the Sector Board Chairman. And we think about health care and life sciences much more holistically. What is our presence going to be, not just 3 or 4 years from now, but in 10 and 20 years. And that's really exciting because I think it aligns so well with the mission that you've heard from Bernard and Pascal and other members of the senior management team around really wanting to have an impact on society. And that was one of the key reasons we came together as organizations, and I will talk about our integration a little bit later because there are a lot of questions about that. But that fundamental aspect of our culture has really been very important for us. And we've received a lot of enthusiastic support from Bernard and from Pascal and from everybody on the senior management team, and that has allowed our 2 organizations to work so closely together and really make this a lot of success. And I think Bernard yesterday at the dinner declared the integration a success. We thank him for all the support in making that happen, and we couldn't be happier. So just taking a step back, in the past 3 years, we have really been humbled by the pandemic. As a society, we all became patients. And I think that was really eye-opening, the importance of health. But what it also pointed out to us is the importance of science. Without science, we would not be where we are today. And without the right technological platforms to take that science from conception through to delivery of a commercial product, we wouldn't have been able to deliver 13 billion vaccinations in an 18-month period. It just wouldn't have happened. And so I think there are a lot of lessons that we learned because of the pandemic. And I think us coming together when we did was really opportune because Dassault Systèmes Life Sciences played such a key role in making effectively helping people around the world in a meaningful way, which is something we always dreamed of doing, we just didn't think we'd be doing it that quickly. And under these circumstances, but thank God, we were able to do that. I think the lessons learned during the pandemic by the life sciences industry are really going to carry forward. And then it's a question I got a lot, which is, did you see a pandemic bump? And is it going to go away? Are some of the trends going to stick? And I think you'll hear from us today that we really believe that going forward, the lessons learned about meeting agility and in terms of manufacturing, meeting logistics, understanding how to compress time lines in clinical development, doing modeling and simulation of molecules, all of those lessons have, I think, really imprinted in the industry and they are going to be carried forward, and we're in a great position as Dassault Systèmes because of our -- the breadth of our capabilities and our solutions really going to be able to be a strategic partner to industry going forward. So let's take another quick look at the industry overall because this is another question. I know with the current macroeconomic environment, people, especially those who are not as familiar with life sciences, get a little bit nervous about what is the impact of rising interest rates, higher inflation, a slowdown in the economy. And having lived through 2 decades of recessions and the like, what I can tell you is that the life science industry kind of moves to its own rhythm. What really drives growth and what drives the way the industry thinks about growth and spending money on new technologies is the innovation cycle. It's much less has to do with the with what's happening from a macroeconomic perspective because at the end of the day, health is the #1 -- is the most important thing that people think about, and you are going to get your therapy or go to your hospital irrespective of what's happening in the economy. And that's why life science companies have been so stable through difficult economic times. And as we think about what's happening in the overall innovation cycle for life science companies, that's where we get so excited because a number of years ago, we started to move down an innovation cycle that was very positive with the end goal for most pharmaceutical companies and biotech companies really being on precision medicine. And what does that mean? It means focusing a therapy on the specifics of an individual patient or a small group of patients. And there's a lot that goes into thinking about that. So you have to do a different kind of science. You have to do -- it has to be more powerful. It has to be faster. But you also need a different kind of agility to get from conception of a molecule through to the development of that molecule and the manufacturing and ultimately getting it to the right patient at the right time. And those are pieces of the equation that we are very well suited to be able to provide to our customers in a strategic way. I think it's important to note that over the last couple of years, 35% of new drug applications and those that were approved by the FDA actually were in the realm of personalized medicine. So personalized medicine is here. It's just not at scale. And in order for it to scale, a lot has to change in the landscape for pharma companies. And we're going to be touching on what it is that we think or what we see as the opportunity there. The other thing that's interesting is that 70% of all trials over the next couple of years are going to have a digital component. And again, it plays to the strong -- the strength of the solutions that we bring to the market. So just a couple of metrics to give you a sense of where Dassault Systèmes is now in the life sciences and where we are from in the ecosystem, 9,500 customers, 1,500 new customers over the last 2 years. So that's a tremendous amount of growth. What I think that's telling you is that we're taking market share, right? Our footprint is large, but we continue to take market share. So our competitive position is extremely strong. Soon, we'll talk about why having 7 million patients and all these connectivity physicians is important. But we collect a lot of data. We've run a lot of clinical trials, and that's extremely important in terms of providing us with a unique opportunity to see what's happening across the globe across all our life sciences customers. And as you'll hear in a couple of minutes, it gives us the unique opportunity to draw insights and knowledge for our customers based on the data that we have. That is a unique asset, and it's something that we're starting to really understand how to talk to our customers about how to how to do much better analytics that are creating new opportunities for our customers to do better science. In fact, you'll be hearing from Sastry Chilukuri, after our presentation, who will be talking to one of our customers, he's the CEO of MEDIDATA these days. And he's going to explain a little bit of how we can really drive value for our customers. I think all in, if you look at the metrics that we have, our market share, the fact that the most difficult and complex clinical trials are run on our platform, you see that 64% of novel drugs, so those are the more complicated to develop, they actually are run on MEDIDATA's platform. That's why we feel so confident about our 13% to 15% long-term growth. Now just a couple of more metrics that I sometimes like seeing charts specialty charts that look like this. Over the last few years, since actually the time of the acquisition, we've seen a 50% increase in the total number of clinical trials of studies that we are running. We've seen the total patient number go up by 50%, and that's good because it means more data for us to use to draw more conclusions and create more value for our customers. And the active studies have increased dramatically as well. We don't have a competitor operating at this scale. And there's a reason that our customers put their most important IP on our platform because they know it's going to be safe. They know we can deal with complexity. And they know that at the end of the day, Dassault Systèmes is a very strategic partner to them. In terms of the integration, I think you can see me smiling, which is a good thing. You can see Anthony smiling. No, I think the #1 takeaway here is, yes, the numbers are important, and we are achieving the numbers that we expected to, and obviously, but they reflect something more fundamental, which is that this has been a really good coming together of 2 like-minded organizations. I think both organizations want to learn, both are open, both hold themselves to very high standards in terms of integrity and how you deal with customers, we are science-based and we really love technology and having an impact on society. That's really important. The way it manifests itself, yes, very good results. It's another question that I've been getting consistently is what have your attrition rates look like? Because almost any integration, almost any merger, attrition rates go up and then you throw in a pandemic and the great resignation, I am proud to say that our attrition rates have not changed from prior to the acquisition through where we are today, which is, I think, really, it's a testament not just to, I can be enthusiastic, but it means that our employees are enthusiastic about being part of this larger family and this larger mission. I think other aspects of the integration are going very well. Some of the back office integration has happened as it was supposed to again, despite the fact that we had a pandemic, I think it's been a very good journey for us, and we're excited about what the future may bring. I'm going to touch on one last aspect of it a little bit after Anthony's presentation, but I want to hand it over so that you get a bit of a sense of some of the products that we have and what we're doing.

Thanks, Tarek. Welcome, everyone, and I, too, appreciated the conversations last night, I know many of you are newer to the life sciences sector and to maybe some of how clinical research works. So we wanted to take a few minutes today during the presentation to touch on how the brands have come together to form the life sciences sector, and then we're going to dive a little bit into some of the profound industry changes that we're in the middle of. I think Tarek touched on them. We had hints of these changes in earlier conversations today. We're in a transformational time for the life sciences industry and the clinical trials industry specifically and very well positioned to address the new needs of that industry. So first, I think what you're learning hopefully last night and today is that the integration of all of these brands and the slices of capability that we can take from the entire brand portfolio at Dassault Systèmes, coupled with the clinical trials expertise that has come since the MEDIDATA acquisition, has really provided this interesting feedback loop and a way of addressing comprehensive needs of customers much more broadly than any of us ever did alone. That synergistic effect is very differentiating for us in a market that is trying to move faster in terms of clinical development pipelines, but they're also trying to move into more longitudinal relationships with patients, with consumers, from clinical development all the way through clinical research into commercialization, into manufacturing, into new drug discovery, iterating that loop, if you will, much, much, much faster. And the tools and capabilities that we bring as a synergistic group of brands in the life sciences sector really enable that to happen. So we are -- sorry, I skipped my video. We are in a transformational time for the clinical research industry. And for those of you that are not as familiar with clinical trials, the way clinical research has traditionally worked is a patient is recruited to a study. They visit a hospital or investigational study site periodically, often every 6 weeks or 8 weeks for the life of that trial. Some of these trials are very quick. Some can last 6 months, 12 months, even several years in many cases. So it's been a challenge for our industry from the beginning to find patients that are geographically close enough to a study center that they can participate in the study. And then it's been very difficult to keep those patients engaged throughout the life of a study as they go back and forth and in some cases, traveling long distances to get to a study center. What's happened during COVID because of quarantines and difficulties with hospitals being able to even entertain patients at all on a clinical trial is the entire industry has moved to a state of what we call decentralization, meaning more and more of the data are captured off-site, more and more of the data are coming from patients themselves, holding technologies in their own hands and offering data in real time as they participate in a study with fewer, and in some cases, 0 visits to the actual study center. And the beauty of this technique or this new method of doing clinical research is, it not only brings the data or the investigation much closer to real time, patients are entering things as they happen to them on a daily basis rather than in a periodic every 6-week site visitation, but also it helps us engage patients and stay much better connected to those patients throughout the life of the trial. And it also leads into the other synergies that we talked about with the brands, where we want to follow patients for a long time after these studies are completed. We want to feed their data back into new studies. And we want to make sure that all of the different parts of the life sciences sector at Dassault Systèmes can benefit the larger amount of data, the higher amount of decentralization and the much bigger kind of complexity that we're seeing in clinical research. So we're going to show a video here that we think tells the story a little bit of how we are approaching decentralized trials and expect to be the industry leader in that space. If you could play the video, please? [Presentation]

So none of these methods for collecting data in a decentralized fashion even existed in our industry more than 6 or 7 years ago. We have piloted these studies. We've run, as you heard in the video, the very first trial, which was a partnership with Pfizer to begin exploring decentralized trials. Now we've run several very large decentralized trials with hundreds of thousands of virtual visits with patients who previously would have had to visit a study center in order to do those studies. And the reason that this works is that we've built a platform of tools and capabilities that you see on the slide. I won't walk through this whole thing, but what's important to note is that everything above the line is part of the traditional MEDIDATA clinical cloud offering that's already used in a majority of the world's clinical studies every day and for 2 decades now. So site-based users, hospitals, clinical investigators, people that are running these trials are already on the MEDIDATA platform in huge numbers. What we've introduced below the line is a whole new suite of patient cloud functionality that allows decentralization to happen because the toolkit used at the sites and the toolkit used at home now live in the same sector, in the same universe is the same set of experiences for everyone involved within the research program. So customers, our customers who are looking for this because of the acceleration COVID gave this entire method, our customers are looking for opportunities to take studies, decentralized pieces of them, in some cases, decentralized large pieces of them, and that's a very complex task to undertake without a toolkit like this. So I know, Tarek, we've got a few good reasons to believe that all of this is starting to work, and I'll pass it back to you for that.

Thank you, Anthony. I know we're running a little bit over, so I'm going to be very quick with this. But Anthony and what he's doing with Patient Cloud is another reason to believe. It's the future for Dassault Systèmes, Life Sciences and potentially for health care in the future because it brings us to the patient, it brings us to the physician. So that's a key part for us. The other is -- sorry, I'm going in the wrong direction, the other is that we are also very excited and have this unique data capability that is also manifesting itself. But you'll hear from Sastry about that in a minute. So we have multiple reasons to believe. And I wanted -- I'm not going to take you through this slide, but what I am going to tell you is about 18 months ago, we created the life sciences engagement model. In terms of thinking about how our integration is supposed to work, it's leveraging the best of MEDIDATA sales channel and leveraging the strength of Dassault Systèmes in the geos. So we brought that together to really focus on better value articulation, not just for the core MEDIDATA products, but for BIOVIA, for CATIA, for DELMIA, for NETVIBES going to our customers with this very broad solution set and explaining how we can actually transform their businesses, and we're starting to see the fruits of that already. 18 months is not a long time. but we're seeing some very good reasons to believe in some of them up here on the screen, but it gives us a lot of excitement and confidence in what our growth trajectory will look like going forward. So with that, I'm going to ask Sastry Chilukuri, our CEO of MEDIDATA, to talk to you a little bit more about our capabilities from a data perspective and talk to one of our customers to give you an example of how we're creating value. So if we can tie in Sastry, please. He's going to be joining us virtually.

Great. Thank you so much, Tarek. As Tarek mentioned, we're sitting on this incredible data source of 28,000 clinical trials and nearly 8 million patients, and it continues to grow on a daily basis. And what makes us even more excited is this data is contemporaneous and it captures everything that's happening in the market today. We're taking the first steps towards creating the virtual twin experience for the human as we recently talked about. And if we bring up our slides, I can talk a little bit about the progress that we've made with synthetic control arms, which is a truly remarkable capability that we've been able to build. What synthetic control arms do is they create virtual patients out of historic clinical trial data and replace the entire control arm of clinical trials. What that is, is instead of going out and having to recruit patients into the control arm of a study, you can actually replace them using historic clinical data. Our data is truly differentiated because it's regulatory grade and it comes out of historic clinical trials, and it truly represents what's happening in the industry. And this has allowed multiple regulators, both in EMEAR as well as in the U.S. FDA to be able to accept this. You've seen the press releases from Celsion, Medicenna and Plus Therapeutics most recently, talking about how they've used our synthetic control arms to replace patients on the control arms and the speed and cost savings that that's been able to give them. In addition to these customers, we actually feel close to 300 requests on an annual basis, and it continues to grow. And our customer base represents the entirety of big pharma, mid-tech biotech as well as the government across the globe. We're currently active in over 20 indications and we'll continue to expand the number of indications and disease areas that we are active in as we continue to scale up this capability. This represents a remarkable step towards the creation of the virtual twin experience for humans, where we are replacing the need for the entire control arm using this virtual experience. Additionally, beyond using the synthetic control arms and the application of the data, if we go to the next slide, we're seeing the application of this data across the entire life cycle, starting from discovery and research to be able to make better go/no-go decisions to be able to oversee the ongoing clinical development. And this is important because we are operating in an ever-changing, constantly dynamic environment for clinical trials, be it because of the war and the pandemic, you're seeing study sites start to perform or stop performing, shortages in terms of supplies. And how do you stay on top of all of these changes happening in the clinical development process is absolutely critical and all the way through commercialization. If you go to the next slide. One such example of using that is to be able to generate new insights into disease is the work that we recently presented at ASCO. Here, we were able to use our historic clinical trial data in CAR-T therapies to be able to identify predictors of patients who are at risk of developing incredibly serious side effects. These are patients that have died and therapies that have been stopped because of the adverse events that they were able to generate. And now for the first time, we actually have tools and predictive models that allow you to be able to identify which patients are at risk as well as how do you intervene earlier to be able to save these patients. The work was so groundbreaking that it was picked up by Pierce Biotech in the middle of ASCO when all of the companies were sharing their own oncology data across all of their clinical trials. To talk more about the application of synthetic control arms as well as the broader application of our data across the entire life cycle, I had a chance to interview Dr. Raj Malik, the Chief Medical Officer of G1 Therapeutics yesterday. So we'd love to share the video that we recorded with him yesterday. Welcome Raj. Great to have you on today. For those of you who don't know, Raj Malik is the Chief Medical Officer of G1 Therapeutics. G1 Therapeutics is a commercial stage company, active in small cell lung cancer with an approved product COSELA that was approved last year for extensive lung cancer with marrow protection. They also have an active development pipeline that we are collaborating on that's focused on antitumor efficacy. Thank you, Raj, so much for joining us this morning.

Thank you, Sastry. Very happy to be here.

Right. To get us started, why don't we dive into synthetic control arms. It's an area that we have received extensive coverage on over the last few months in terms of the regulatory approvals. More broadly speaking, where do you see the applicability of synthetic control arms? And what do you see as the value that they create for clients such as yourself?

Yes. Happy to discuss that. This is, I think, a really interesting area. I think synthetic control arms can help in probably a couple of different ways. I think from a patient perspective, one can use data to reduce the number of patients who are potentially exposed to a therapy that may not be as effective being on the control arm. And the second is that it could also help to speed up the development, so you can get the therapy eventually to patients faster. I think from an R&D perspective, it's helpful in early stage of development for generating proof-of-concept data that could help to make decisions in terms of where one might want to develop the drug. And then potentially even in later stage development, as you all have shown where it could actually be a control to reduce the number of patients for an eventual Phase III trial. So I think that it's -- as more and more patients are exposed to different therapies, and the ability to generate diverse external control arms, I think it's an effective and efficient way of incorporating it in the development program.

As we're starting to get into the understanding the applicability of our data and the AI, we're seeing a tremendous amount of potential and the ability to model and simulate trials early so that it improves their overall probability of success. It's an area that we worked on together. Can you comment a little bit about the broader applicability around the modeling and simulation of the trials using this data?

Yes. Here again, I think there are several areas where there could be a benefit. Initially in -- even in the trial design phase, as one is thinking about eligibility criteria to sort of mine the data to try and kind of understand, what types of criteria could potentially hinder trial enrollment based on the experience that you all have with the data, and so it can help from that perspective. I think you can also help from -- potentially from even site selection based on sort of the competitive landscape that you all are seeing, obviously all in a blinded way, but in terms of where trials are ongoing. And I think the second component is during trial conduct, particularly over the last few years, we've all had challenges running trials, first in a pandemic and then in the current geopolitical situation. And so you always want to see how are our trials performing relative to our peers. And I think being able to get some real-time data analytics can also be helpful during trial conduct. So I think it could help in a couple of different ways.

Thank you so much for your time today, Raj. I think that's all the time we have today. I look forward to catching up more extensively in our future interview.

Absolutely. Nice to talk to you, Sastry.

Thank you.

So thank you, Sastry. And thank you, Anthony, again. Just to quickly wrap up, I think you have a little sample of the unique solutions that we're bringing to the marketplace. I think as you think about the future of where Life Sciences & Healthcare is going, we get very excited about the positioning that we have and the strength that we're bringing to the market and to our customers and ultimately, the impact we're having on patients. So stay tuned, but we're feeling great about what we're doing today and what we're doing -- what we see in the future.

Thank you so much, Tarek and Anthony and Sastry for this great insight.

Well, Rouven,, we're very proud of you being the CFO of DSS. I sometimes joke that maybe the merger goes both ways. It wasn't just an acquisition.

No comment. Thank you for the endorsement, Tarek. So with this, I'd like to welcome Florence Verzelen, our Infrastructure & Cities sector Board Chairwoman for the next section. Thank you.

Thank you, Rouven. Hello, everybody. Pleasure to be with all of you today, and I'm very happy to be discussing with you today our Infrastructure & Cities ambition. Why? Because as Pascal just said, this sector is currently undergoing huge transformation. We have always been very influential in this sector because we were the one who invented [indiscernible] city with Singapore in 2012. But in view of what is happening today in this sector with already half of the world economy, but we is going to expand a lot because of the big investment that are put into that sector by the stimulus package of the different countries and of the challenge of bringing to net zero sector that represents 70% of the world emission, well, this sector will have to adapt and to adapt fast. This sector will need to leapfrog on productivity when they are today where we sit, 20 years behind compared to the current industry. So it will need transformative solution, the really disruptive approach and at Dassault Systèmes, we think basically, they will need a platform. So 3DEXPERIENCE platform. So I'd like to spend next 10 -- 13 minutes discussing with you how we see the Infrastructure & Cities sector and its challenges. What are the transformative solutions that we are now bringing to the market and what kind of ecosystem are we fostering in order to transform it. So how do we see the Infrastructure & Cities sector? Well, we really see it as 3 different industry. Infrastructure, Energy & Materials first, all the industry, transport infrastructure, solar plant, wind plant, nuclear plant, mining industries that are related to projects, project driven. And then there is everything related to architecture, engineering and construction, which is everything related to construction and the value chain of construction. And last but not least, cities, public and business services. Basically, all the services and the authorities, public authorities that are bringing -- that are helping our economies to be resilient. And as shown by Bernard and Pascal earlier, they have an impressive [ PAM and TAM ] and as well the higher growth of all sectors. And why so? Well, because they will have to overcome very important challenges in the next few years. I already discussed the level of greenhouse gas emissions, they have to bring to zero. But even before 2050, we'll have to deal with the [ power market ] disruption challenge. We know it because we are all buying electricity and fuel, so prices are skyrocketing because -- well, we are using 3x more electricity than 20 years ago. And basically, we need more power and we need a way to produce that power, which is sustainable and resilient, not depend from [ Gandrithat] that might be difficult in the long term -- midterm, short-term and long-term basis. Third challenge, license to operate. I discussed $94 trillion of investment in that sector. But a lot of infrastructure projects are stopped because of the lack of communication between citizens and the government of the local authorities. So we need to find a way to create that communication skills. Fourth, that communication ability. First challenge, supply chain disruption. We've seen it. Like in 2021, there has been 3x more disruption than in 2019. And it's even worse beginning of 2022, as you know. And last but not least, construction industry productivity. As I told you, they are 20 years behind compared to the car industry. So how are they going to manage? And this is exactly where we think 3DEXPERIENCE platform is a right solution because when you think about that, to overcome each one of this challenge, basically what you need is 3 things: a platform in order to tooling the ecosystem together to link the value network, model and simulation capabilities to do the right thing is the first time and system capabilities. And we Dassault Systèmes are basically the only players that can do that. And in order to do that as soon as possible together with the Infrastructure & Cities team of Vice Presidents that are working on this industry, we have built 6 plants that are, for us, 6 ways to address these different challenges in a very consistent way with a very clear portfolio and that will help us help the world. So what we are going to do is really to address the challenge of sustainable materials and recycling because we need new materials, sustainable materials to fuel the economy. We are going to -- we have built solution to foster renewables and new energies. We are working on solution for resilient and sustainable cities, we are working on transforming the construction ecosystem to make it a real value network. We are fostering solution that will help address this $94 trillion challenge of transportation infrastructure. And we are also working on improving the logistics and supply chain visibility in order to help everybody on this planet, including a manufacturing industry to have more reliable and resilient supply chain. I don't have enough time to tackle all these 6 plans today, but I'm going to focus on 4 of them, beginning by sustainable materials and recycling. As discussed by Pascal, sustainability is indeed super important. And in order to fuel that sustainability, we need sustainable materials. And to have sustainable material, what do you need? Well, you still need metals and minerals, the right one, but you need to extract them in the right way. It's the most sustainable way. So we do that with solutions that we have developed and that are working extremely well as proven by Zijin. Zijin is the biggest copper mining company in China, and they are using our solution to extract copper more sustainably. And then once the metals and Minerals have been extracted, you need to improve the performance of the materials. And that's what we are doing with lab excellence and materials excellence. And you've seen the demo of Florence earlier on. So you've seen the platform in action on that. And once you have performance materials, you may need as well to produce them, produce some of the other materials in a more sustainable way. For example, steel. Steel represents 7% of the world's CO2 emission. Well, we have developed solutions that help improve the processes with the system approach in order to decrease as a percentage of emission, but also improve the planning and scheduling and as well as end asset integrity. And we have engagement with huge company with like United States Steels that are proven that it's working, and it's getting more and more traction with all the other steel companies. So this is what we are doing on sustainable materials and recycling. And it's super interesting because it's also fueling what Florence has shown on life cycle assessment because having this impact is going to fuel all the products on which we are going to do life cycle assessment in manufacturing. The second plan was on renewable and new energies. Indeed, we need to develop very soon more renewables, but also a new source of energy, baseload energy in order to fuel our territories. And to do that, well, we are doing 2 things. We are, of course, continuing to foster renewable energy. We are already in 3 out of 4 wind turbines in [Sanet]. But we were, for a long time, only on the simulation part. And now we are really expanding to design, manufacturing as well as insertion of the wind turbine with the simulation of the territory and how the renewable energy, which is an intermittent energy is going to be inserted in a sustainable way with the right batteries in the territory. We are doing that in a project like the [Modelica] project in France. But at the same time, we are also helping the industry, developing a new source of energy. And Bernard mentioned the NAAREA project earlier today. NAAREA is a very interesting project because what do they want to do at NAAREA, small nuclear modular reactor and what's the ID. The ID is that when you want to do a big nuclear reactor, it's often a first of a kind, it takes 5, 10 years to do, and it doesn't bring a quick solution. if you do a smaller reactor using the 3DEXPERIENCE platform with a system view connecting all the value network to work on this reactor and planning a production of this reactor like a manufacturing process, like you would manufacture car. Well, you basically do a program of small nuclear reactor, you can manage the small nuclear reactors as fleet, you can move them easily, and you can have them quick to market. That's the vision. And that's a vision that is possible for NAAREA that we are currently conducting on the 3DEXPERIENCE platform -- in the 3DEXPERIENCE platform with all the value network. Our third program was on resilient and sustainable cities. And I'm going to be quick because I'm running out of time. But basically, what we do on this program, which is super important, is to help cities plan for resiliency. Currently, 60% of the cities are at risk of a climate disaster anytime this year. So their need is to plan for that climate disaster. What will happen if there is a flood in the city of [ KEIHANNA ] in Japan. Well, now they know because they did the simulation of the city on the 3DEXPERIENCE platform, and we did it together with our partner [entity]. And we are doing the same kind of work and simulation in Saudi Arabia with AlUla project or in China with the Qingdao Innovation Center. And the last program I wanted to discuss about was what we are doing on construction. I'm sure all of you have heard about what we are doing on Bouygues basically using the virtual twin of a building in order to help get the right people at the right time and optimize everything during the construction. But what we are doing with Bouygues, we are also replicating to a lot of supplier of Bouygues, for example, KG Construction, they are doing facade and using the 3DEXPERIENCE platform and the virtual twin of the facade, they could improve by 30% efficiency of the design engineering and fabrication. So these are basically the kind of solution we are bringing to market for the Infrastructure & Cities sector. And I think these are really transformative because they bring this platform approach that is -- that was missing in this sector in order for the sector to leapfrog on efficiency. But in order for us to really win that sector and overcome the challenges that are going -- that are here now, well, we really have to approach strategy. Of course, we always begin by doing first of a kind, with real big reference that prove to the market that our vision is the right one, that the leaders, the most innovative players are adopting it. so that the other players know that it's possible to replicate. But we also for this sector trying to build a new ecosystem, a new ecosystem of players that is also going to help us to evangelize on our vision. This is what we are doing, for example, always with brick because so vision of brick is not only to have the virtual twin of the building, it's also to in the second stage on which we are working now together with us is to build each of the virtual twin of a building with virtual bricks like 100 type of LEGOs that we assemble for -- to do any kind of building. And what is interesting is that each virtual brick will be done with a certain number of craftsmen who will be prepared to install the brick eventually with micro factory close to the construction side and that will make the construction always more sustainable and always more efficient. And what is interesting for us is that it's going to help all the ecosystem of brick to jump on the 3DEXPERIENCE platform experience and that will help them really embark and engage on our transformation. But we are doing similar projects with all other actors like Orange, Renault EZ-Flex where we have built a consortium and software republic. And this consortium is about creating use case on the platform for mobility services, energy management and connected vehicles in the cities. And again, in this consortium -- this consortium is going to engage on this use case with the 3DEXPERIENCE platform. So we have other players on top of Dassault Systèmes and usual ecosystem that is advocating for solutions. And with that, with the solution that we are developing with the ecosystem that we are fostering, we think that Well, that should be -- that should allow us to not only reach our objectives in terms of growth, but also basically to help make the planet sustainable and resilient for citizen and therefore, to harmonize product, nature and life. Thank you.

All right. It is now time to share our ambition for the manufacturing industries. More precisely, we are going to share it through the voice of our clients. Dassault Systèmes has been serving manufacturing industries seen successfully and continuously for many years. You know that as a trusted partner for industry leaders, we provide these industries with all what they need to differentiate since our genesis. Can you imagine a newer plane program, a new satellite, a new machine or even diapers at Procter & Gamble without our solution. Manufacturing sector, accessible market represents by itself half of the market Dassault Systèmes wants to serve, which correspond to $50 billion opportunity market. Our footprint in these industries are still growing. We continue to provide additional value to gigantic installed base and also their value network with the 3DEXPERIENCE portfolio. A few examples. Renault. Renault adopting 3DEXPERIENCE on the cloud industry solution as an inclusive platform for all the enterprise, including costing, purchasing quality. Jaguar Land Rover accelerating electrification through implementation of 3DEXPERIENCE cyber system industry solution and data science. Our several high-tech clients deploying the end-to-end collaborative development environment for smart electronic products, result of our partnership with Cadence. But at the same time, we are serving with our unique 3DEXPERIENCE cloud industry processes and roles. The emergent player that we call the shakers of the industry, they're all taking this out of the box like Renault, by the way. So Renault [indiscernible] for hydrogen vehicle, [ lighter ] for solar-powered vehicle, vertical aerospace, [ Tobi ] and Aviation for air mobility. We'll also hear about Rivian in a moment. So let me share with you some observation. First one, since 2020, we observed a growing number of companies committing to become carbon neutral. It's obvious we take more from the planet that it can provide to us. It's a crisis of balance. The topic is sustainable eco bill. In this endeavor, manufacturing companies are transforming super fast, extremely fast to become the solution for a sustainable world and not anymore a problem. 75% of the industry executives declare an imperative to include sustainability in their processes, but only 20% are currently doing it. So we witnessed now that the adoption of the 3DEXPERIENCE platform, science-based Eco bill and circularity solution will be the catalyst and enabler of this revolution to tackle the challenge. So let's take the example of on-road transport. To respond to commitment from European and Asia countries to ban the sales of gasoline engine, gasoline vehicles in the coming decades, electrical vehicle projects are becoming the new norm. As I speak, 85% of electrical vehicles on the market or under development are invented with the 3DEXPERIENCE platform, namely with [indiscernible] for the Engineering. So I'd like to share with you an example of a recent 3DEXPERIENCE win on the cloud out of the box with soft trucks, producing last-mile delivery electrical trucks, chassis and complete vehicles and delivering the services to operate them. They're transforming. So they wanted an out-of-the-box solution to support their exceptional growth. 170 users added in the last months, and they want to collect real-time to their multiple design and supply partners. Beyond the virtual twin of the vehicle, you see here what they did is, they built a virtual twin of the 2 U.S. production sites to support fast ramp-up. That's, I guess, a reason to believe. Now the same type of transformation is happening in all industries, albeit simple. All the segments are requiring similar science-based approach powered by the 3DEXPERIENCE innovation platform. You see some examples here. Now I want to share with you a second observation. Adoption of 3DEXPERIENCE is also driven by the transition from product-centric to experience-centric revolution. Consumer experiences, you know them such as Uber, Amazon, are based on virtualized and data-driven customer relationship. It is not new, but it is accelerating very fast. The experience is the expense economy is as profound revolution as was the industrial revolution. For us, it's beyond digital. You've understood it. It's about virtualization of the world in a holistic way. So now delivering experiences require sophisticated, sometimes system or systems, at the core of the next-generation experiences. More and more frequently, 3DEXPERIENCE is used to model, simulate and optimize an end-to-end experience with a cyber system approach. As shown in this example by Forrester. Forrester was live from the CS. So we'll run the video, I'll comment it because it was a little bit noise behind. What we see here is a collaborative and systemic virtual twin to address the complexity of the car interior engineering, combining the models of many disciplines, mechanical, electronics, software, thermal. Forrester has applied a unique model-based system engineering approach provided by the 3DEXPERIENCE platform, resulting in cost-effective engineering, accelerated time to market and moving from internal silos to a holistic approach. The live demo that you see here is running on the 3DEXPERIENCE platform on the cloud. Forrester designed the interior of a new Porsche Cayenne electrical vehicle with their own seats, instrument panels and its human machine interface controlled by software. For this example, the human machine interface is totally replicated between the real and the virtual world to test more alternatives, quicker and make sure that the experience will be a desirable one by the end client. You can see all interactions are replicated and directly visible real-time on the virtual twin. So you can mix both virtual and real interaction. So you ask me what is the value? Well, this is very important for Forrester for the acceptance of a new HMI by the clients and to create intimacy with them. So this was for the first experience. Now I'd like to share with you a consequence of the previous transformation. The new economy requires a new way of working with every stakeholder, and they would like to develop sustainable relationships with the peers. So this would not be possible without sustainable collaboration from design to sales, production, engineering, operations and upcycling. Many ways of working that our clients urgently need, there is an urgent demand together with their ecosystem. So it's not a surprise that facing the trade wars, the company -- the component shortage and large public funding for local investment, our clients want to develop new production capabilities and new relationships with their value network. Let's look at two real-world facts. Mobility and Harmony is a new electrical vehicle ecosystem. It gathers 2,000 members in 56 countries, and those EVs are representing data system there. Also around hundreds of new battery production Giga factory will open till 2025, representing a new winning market for DELMIA discrete manufacturing solution as part of Industry Solutions. So I'd like to share also another experience. We'll go further now on this topic and run our next video that you will maybe recognize, but on the production system. So what is the entire company and its value network using 3DEXPERIENCE could design, manufacture and deliver considering environmental impact of their joint decision along with performances. This experience here shows you how we can help our clients collaborate to achieve excellence and sustainability here for a production system. Step 1, sustainability-driven engineering. By embedding product life cycle assessment in the 3DEXPERIENCE, we can optimize how the machinery is assembled, used, maintained, but also recycled. Step 2, thanks to simulation and model-based engineering, we can optimize the product system design to reduce the overall energy consumption during usage. In this example, we see how replacing a subsystem impacts the overall power demand of the machine. Everything is done virtually in a few minutes and without needing experience validation test, physical tests, which are -- and prototype waste. Step 3, designed for circularity. We do optimize maintenance operation time to dismantle complex parts of the machine without the need to discount the parts. Step 4, supplier optimization. Choose the best supplier for sourcing and optimizing the procurement for dynamic situations. In this case, it is optimized to reduce overall CO2 emissions while maintaining high fulfillment rates. The maintenance fleet as our clients are switching to new business model of product as a service, reducing CO2 emissions related with maintenance, fleet operation is becoming a must. Here, we optimize overall mileage. So the cost and the CO2 emissions are optimized. Last topic, modernization. By comparing environmental performance of different machines division, it is possible to decide if it's worth upgrading the machine or not. As you see the power of our platform that grant digital continuity, embedding sustainability fits in multiple applications and in multiple industry, hence the growth. Back to clients. New ways of working and urgency to transform the value network. Let us see how Renault is taking this seriously. Renault, as you see here, launched what is called the resolution to transform its strategy from volume to value creation and will be a major player in energy and mobility services, becoming a tech company working with car, a tech company working with cars. The two main challenges are regulation and compliance. The automotive world is evolving in an increasingly complex regulatory context. Renault needs to master this complexity in order to meet the challenges. Number two, mastering mixed hardware, software systems. These vehicles are more and more sophisticated, electrified, connected. These new vehicles are made of software and systems, although need a platform to model, simulate and manage in configured way this new complexity. You have understood cyber system is everywhere. So resolution virtual twin program is based on the 3DEXPERIENCE platform out of the box on the cloud. The aim is to have an enterprise platform that integrates all the different trades in the company. It represents 20,000 people. Renault has already deployed 4,000 on the cloud, 4,000 users, and we can observe the values. Of course, breaking down the information silos that they have and using the 3D virtual twin enriched with all purchasing, costing, quality data from the consumers, the factories, and after sales, there have been identifying important saving opportunity for vehicle material usage. That was the first part of the value network. Second part, which is in my heart also as a brand leader, innovation is everywhere in the value network. And our mission with our mainstream offer, 3DEXPERIENCE WORKS. Cloud is to lower the barrier of access technology and science. So 3DEXPERIENCE WORKS is for everybody from companies that want to be agile and resilient to makers. We have sold, since the beginning of the year, 18,000 makers. Also -- well, we have launched last year, SOLIDWORKS cloud. The web mobile offer with high traction since the beginning of the year. 3DEXPERIENCE WORKS assembles the capability of 5 domain: design, simulation, manufacturing, marketing and government [indiscernible]. So you have here some values that were enjoyed by our clients. Again, the voice of our clients. Smart flyer creating electrical aircraft values how 3DEXPERIENCE WORKS unites the design team in Czech Republic, and they're manufactured in Switzerland. It's all about collaboration. No IT needed. And the third one that we recommend is RockFarm, a robotic system that builds rock walls that mineralize carbon to fight effects of climate change. So they value the web, mobile, SOLIDWORKS cloud in order to collaborate from anywhere and streamline their process development. So these examples are numerous. We have several of them every week between hundreds and thousands of users connecting every week new users on 3DEXPERIENCE WORKS on the cloud. Now as a consequence, we believe all future experiences developed with 3DEXPERIENCE should have the consumer at the center and promote circularity. So this is why if we do representation to show our experiences. With [indiscernible] value creation. That means on the left side is now extending to the usage on the right side of the [ file ], and usage data feeds the value creation process in a circular approach, doubling our potential accessible market. To illustrate this, let me introduce Philippe Loeb, our VP in charge of our two most consumer-oriented industry. Philippe, welcome.

Thank you very much, Philippe. Very quickly because time is up, obviously already. Not my fault. I think we only an update first in this room, 2018 Capital Market Day, [indiscernible], and she said, we have an idea, we want to work together to do a next-generation kitchen planner. I'm very delighted to not show you a demo because you can do it by yourself. You go online on ikea.com, and you can see the planner in action. Every year, every day, it is 20,000 new users, consumers, people. The people we care about who are using the solution, and that's really bringing, I would say, a new level of intimacy between us and the consumers. And it is really super important for us because we believe that understanding where consumers are going is a good way also to drive our business. When they tell us about sustainability, of course, we invest in reformulation, natural ingredients. For example, we have a new solution for this on cloud being tested by very large customers. We also expand the scope, as presented by François earlier of EcoDesign to make sure we can cover all categories of products for consumers. When they ask us about delightful experiences consumers, we help companies with system or systems, develop products, connected experiences, I would say, in the right way, which is absolutely critical. But also with Centric, developing the right products commercially speaking, making sure they add the right things into their catalog. By the way, speaking of Centric, investment for us in 2018. You see the curve, the wall of logos. Of course, the last year is just -- the start of 2022, it's going to pile up very, very fast. It took them 10 years to convince 100 customer. The last 10 months, they did the same. So very strong acceleration on the Centric side and a strong acceleration also, as you see, on 3DEXPERIENCE. [indiscernible], for example, working on the agile manufacturing and PepsiCo on sustainable packaging. Why? because consumers also are asking for inclusiveness and making sure that basically the products can be delivered to all at the right price at the time of inflation and doing things well and with precision, by the way, is exactly the kind of approach we have and it is an answer to inflation. So that's not necessarily a bad thing for us. And of course, consumers, it's about data. You see on the left, this is the most important part of this chart today. What we do is very specific. We connect to data. So we build a digital cloud, a digital twin just like the others, but then we go into the virtual world. We take this data, and we build semantic model, which are very precise, which are industry-relevant. And then we put this data with industry relevancy in the context of the virtual twin experience of the product of the production system or why not in the life of consumers, and it is working and making a big difference. We just end with a small anecdote 10 days ago. So it's very, very recent. The company, [ Eton ], you see the blue logo here. They do power management. They came to us, and they had a very common issue right now, which is a shortage of a chip, small chip. $0.10 a chip, so very, very cheap chip. And of course, they call their suppliers and the suppliers told them, yes, we can sell that to you, but the cost is EUR 150 per chip. So a huge number, of course. Not the right kind of answers they were expecting. They came to us, and using this semantic capabilities, this knowledge of the industry context, we could understand that, yes, the plant was about to stop in the U.S. But as a matter of fact, in the same very large company, [indiscernible], somewhere in the Czech Republic, another company of the Eton Group, was using the same chip, and they are totally different name, totally different part number. But thanks to the semantic search and the similarity, we could solve the problem for them. Of course, they just had to ship the chips from Europe to the U.S. in order to deliver to the company and timely to consumers.

It's time to conclude. So takeaways, are here. Happy if you can push the button. Two things to remember. In fact, a huge expansion and allowing, in fact, our clients to become not product manufacturers, but deliver sustainable expenses, and you've seen some readiness about that situations. And the second one, our cloud platform. The cloud offer is ready and is already bringing value to many of our clients. And I do not say that our clients say that. Thank you.

Thank you, Philippe and Philippe. We now have, as next, Q&A coming up. And for this, I would like to invite Tarek and Anthony up here as well as Laurence, please. And let's look into the audience. Many arms up. We start here in the middle.

I'm Kathinka de Kuyper from JPMorgan. Tarek, my question is for you. On precision medicine, how far along are you? And what capabilities do you still need to develop? And do you plan to do that organically? Or do you plan to acquire?

Sure. So it's more a question in my mind of how far is the industry. So there are certain capabilities that we bring to the table today that really allow our life sciences customers to do what they need to do from a precision medicine perspective. You heard a little bit from Sastry about our ability to help find physicians and patients to do effectively a digital twin of a patient to be in the placebo arm. Those are aspects of precision medicine that I think are important, but the pieces that are yet to be developed or to be utilized, I should say, by our customers is, when you run a -- when you're looking for a drug focused in precision way on a patient, you are effectively running or you're creating a therapy for one person or for a small subgroup of people. That's happening in CAR-T therapies already, but it's not happening at scale. It's happening for a very small number of patients. And so when you start to stress the system, if you look at it at a much larger scale, if you think about every patient having a unique therapy, then the way the life sciences industry currently operates starts to break down because there are a lot of silos. And information is -- there's a lot of friction in sharing data between research, development, manufacturing and then actually how you get the therapy to the patient. And that's where the challenge comes in. So it's not so much -- I think in many respects, we're ready for that challenge because we bring capabilities in logistics, in manufacturing. We have the modeling already in place, but the industry isn't quite there yet. The demand for it at scale isn't there yet. So I would say, over the next 5 years, we're going to see much more from a precision medicine perspective, and I think as the industry evolves and matures, we're going to be ready for that. Do we have to do acquisitions? I don't think we have to do anything significant to necessarily facilitate precision medicine. But we have to keep evolving our solutions and our platform to make sure we're keeping up with our customers' demands.

Okay. Let's see. Jay, you have one question.

So for Tarek. Could you comment on your international expansion since the acquisition? Prior to the acquisition, about 3/4 of your revenue were in the U.S., and the rest was split among various countries. Since the acquisition, you do seem to have been making certain investments outside the U.S., for example, in the U.K. and Japan, but perhaps, talk about your international expansion of evolution or plans.

Sure. So just to be clear, our -- we had a very international business to start with, where we were recognizing revenue where the licensing was happening was much more -- yes, it was U.S.-centric, but clinical trials is a global business, and we were running clinical trials in upwards of 140 countries in I don't even know how many different languages. So I don't think our international footprint has changed dramatically. What I would say is, now being part of the Dassault System family, our presence -- our strength in Europe, which was probably one of the weaker areas for Medidata, has really has evolved. And I think really our footprint has improved in Europe. But as it relates to Asia, China, for instance, or Japan, we had a strong footprint that's continued to grow. And North America, where -- I would say, in every geography, we're growing ahead of the market because we've been taking market share or significant amounts of since the acquisition.

Okay. Next question.

My question is probably for Philippe on the manufacturing side. If I look at your expectations for growth in the next few years, I think you've raised your expectations to 9% to 10%. Now I think last time you were targeting 6% to 8%. So it's higher -- if you can share with us what's underpinning this more positive view? Despite what's going on in the world, you seem to be pushing for more growth. So if you can share with us a little bit what's driving that.

Well, the acceleration is based on the 2 factors that I was mentioning to you. The growth based on the needs for sustainability, [indiscernible]. Again, we have inquiry for that every second day. And the second point is the value network. We have now, I would say, a substantial distribution machine that can address at the same time, I would say, in one shot, the suppliers, the value network and as well the OEM. So again, this is based on the current observation we have that have made us make this decision.

Question for Florence on infrastructure and cities. It's a hugely fragmented industry. I mean you articulated the advantage of bringing a platform approach. But I wondered if you could help us with -- of the 3 subsegments you identified. Which is the one which is really going to drive the growth for Dassault? And how do you ensure that you don't run the risk of spreading yourself too thin in a hugely fragmented industry?

Thank you, Tarek. Thank you very much for this question. It's a very fragmented industry, but it really depends how you look at it. Because if you look at Infrastructure engine material, at the end of the day, there are not so many energy company. And if you look at the nuclear project, the SMR that we are helping, well, there is only a few projects on that kind. So I wouldn't say it's so fragmented. What is super fragmented, for sure, is AEC, architecture, engineering and construction, where you have more than 5 million companies. So you can call it fragmented. And that's where we really think that working on [indiscernible] that I explained and which we are working with big construction, meaning creating bricks that -- brick construction is going to use to put together to create any of its building is going to force all the craftsman that we'll be working on this brick to adopt the platform. And we think that if they adopt the platform for project with [indiscernible], who is doing, as you know, a lot of projects on this fall, they're also going to keep the platform for the other project. And we are going to reach a tipping point. So that's really here that we think the fragmentation is under with virtual bricks and the virtual twin of building approach. When it comes to cities, public services, [indiscernible] services and business services, well, we are taking the choice to choose the cities we are working with because we're working with cities. We have a vision of transformation or really have use case. So we are more selective.

Do we have questions from the webcast? No? Any further questions here? Yes?

Johannes Schaller from Deutsche Bank. Tarek, I think you talked a lot about patient cloud and also Anthony did. That seems to be probably the second largest kind of revenue contributor in your portfolio, but growing quite a bit above the Medidata average. Can you help us kind of size the opportunity there when you go out with those EUR 10 billion or EUR 20 billion addressable market figures. How big do you think patient cloud is within that compared to the other bids?

Sure. And I would say, in the context of clinical trials, it can be pretty significant. The way the market is evolving, there will be an element of decentralization over, call it, the next 5 to 10 years, where pretty much every trial will have some aspect of it where you're collecting data directly from a patient. You saw that one of the statistics we had up there that was, there will be a digital element in 70% of all clinical trials by 2025. Obviously, it's a prognostication, but we see that kind of momentum. The interesting questions in terms of the TAM becomes if we're successful in expanding beyond the clinical trial realm with the patients, then it's a whole another world for us. I don't want to speculate on it. I would just say, it's a very large opportunity. In the meantime, we expect that Anthony and his team are going to really help drive the overall Medidata growth, and yes, it will be above the average for the core Medidata solution.

Okay. I think with this, we want to conclude the second section, and we have now a 10-minute break. But I really would like to make sure that you come back in time because we have our customer coming up in 10 minutes from now, and we really want to make sure that when he's up, that we will be all ready. Thank you so much. [Break]

Okay. So we are now back with our, I would say, the final part of our manufacturing industry's deep dive. We have one amazing customer testimony from Rivian, which is coming up next. And we are waiting for Barry Caldwell, Director of Geometric Development and Operations from Rivian, to join us via Zoom. Barry, can you hear us?

I can. Can you hear me?

Yes. Wonderful. Thank you.

Fantastic. Thank you. Thank you.

Okay. Let's go.

All right. Thank you very much for the introduction. Good afternoon. Good evening, everyone. I am Barry Caldwell. I'm the Director of Geometric Development and Operations, which is a really fancy way of saying [ GAD ]. I have responsibility for operational geometric development within the body and interior organization and then enterprise responsibility for the way that we do geometric development here at Rivian. My passions are obviously geometry development, mathematics and high-end visitalization. Next slide, please, and we'll jump right into what Rivian is and talk a lot about how we use the platform within Rivian. So just very high level, you can see our three products that we are doing right now up in the upper left corner -- the right-hand corner, excuse me, is the R1T truck, which we've gotten many customer deliveries up now. Below it is the R1S SUV. Kind of a view of the interior, absolutely elegant. And then over to the left is the Amazon delivery van, and we'll talk a little bit more about this later. Next slide, please. The company was founded by RJ Scaringe. If you're not familiar with that name, graduated from MIT with a Doctorate in Mechanical Engineering, and said, I want to start an automotive company and has far surpassed just starting an automotive company. So you can see our quote there. We're very foundation on making products that are just inspiring, but yet for the planet, but yet again, drive others to think about transportation in different ways, and these products do all of that. Just real quickly, the R1T, again, if you're not familiar with the vehicle, 0 to 60 in 3 seconds and forge 3 feet of water going forward or backwards, can climb a 45-degree incline going backwards or forward. And all of that while you're doing it with an elegant interior with real wood, Alcantara, Trim, Manta, vegan leather seats, a truly incredible product. Next slide. So just the company, very high level looking at it. We are an electric vehicle manufacturer. As I had mentioned, RJ started the company back in 2009. We're sitting, I think, right around 12,000 employees now about 4,300 in our manufacturing center in Normal, Illinois. Our main development center is in California on the West Coast, primarily software, battery stuff up in the Palo Alto area, and then our product development core remain our identities down in the Irvine area, but we're a global company. We have offices in Michigan, Vancouver, Europe, China, pretty much everywhere, especially within the COVID pandemic era. We went public back in November. I think it was about EUR 13.5 billion, roughly speaking. We have the 3 vehicles that I had spoken to along with charging stations and lots of other things that we're doing out there and more of a B2B environment. And there, you can see some of our initial investors. Next slide, please. Okay. I've seen some presentations kind of listening to these things, and I'm encouraged to hear those things around sustainability and that there is focus on that because it's an important thing. If you go to the next slide, please. Certainly, with the growth of transportation products along with other industries that require petroleum or oil-based products to do it, there's a lot of pollution going into the air. Not good for the environment. And certainly, the world is going to get bigger and more people and more transportation devices. So it's time to think about that. And granted the earth is big, but that fossil fuel does have a limited lifetime, I'm not smarter one to pick one day, it will run dry, but certainly, it will at some point. And if we look at electrification, there's lots and lots of ways of making electricity very efficient. So yes, as we push ourselves out to 10, 20, 100, 500, 1,000 years, this is the way to go. It's an important thing. Lots of stuff to do, but it's an important thing, and there's just some data. I think you've probably seen this already. Just to give you some -- the why of why we're doing this. Next slide, please. So let's jump in and talk a little bit about our product, and I will marry into that how we use the platform in our product development. So everything you're going to see from this point on, please understand we do this on the 3DX platform. Yes, we might use some other applications here or there for very specific things, but the product development that we do is on the platform. Next slide, please. So here's just a little elegant view of our product for us engineering types. This is just a beautiful picture. It's a super simple, and it's a super elegant and a super robust design. As you can see there, it handles a 314-mile range battery pack. We've got drive to each tire, each wheel, each end. We've got independent air suspension. Vehicle can go up and go down, depending on the [indiscernible]. We've got a super durable structure on this vehicle, which you'll see in the next slide to protect that battery and just as importantly, protect the occupancy of the vehicle. We could put monster 34-inch tires on that vehicle, and we really manage our materials and use the platform extensively to get that right mix of strength and lightness versus cost on this vehicle. Carrying around a big battery pack, it's heavy. We want to really be effective with their use of materials, and that's something that platforms allowed us to do. Next slide, please. So this is a simulation that you'll see up on the top slide of our vehicle design. It's an offset barrier simulation, a very, very difficult one to do and achieve in past. And then you'll see in the lower, on the left, is the actual physical test, and on the right is the simulated test. It's a beautiful picture from Andrew's point of view. It took that load, it dispersed that load, it absorbed that load and it kept that load from going into the occupant. These -- getting to this level requires massive amounts of engineering, iteration in the digital space, right? And without a platform like Dassault has, this would be really difficult to do in the time frames that we need to do it. You don't want to do that physical test, but once maybe twice just as a pure validation that what you did in the digital space delivered what needs to be delivered. Incredibly difficult, incredibly hard to achieve and requires a really robust digital solution to get to this level. Next slide, please. Then we have numerous other examples, just no time for that. So let's talk a little bit about our manufacturing environment and again, how we use the platform. Next slide, please. It's a big plant now. It's pushing 4 million square feet. It's in Northville, Illinois. The picture on the left is not day 1, but we got lights in the place for that picture and had done a little bit of cleanup and poured some cement. And then on the other side, I believe that was taken in the last year. You can see it's all done, it's painted up. There's units coming off of it. There's a bunch of folks working on it. Truly an amazing thing. And again, we use the platform extensively to plan with that physical space. Just step back and think about planning your living room times 4,000 -- 400,000, massive thing. And you can see some of the statistics there of how much steel and concrete and wiring went into that building. But just awesome. And next slide, please, I will kind of explain a bit how we use the tool within the 3DEX platform to figure this out. So here's just a simulation of -- this is the Amazon delivery blend, the marriage, ducking the upper body to the underbody for those in the more traditional thinking of vehicles. We had to do all that simulation. We had to do all of that stuff in a hurry, really fast for a product that we had in development so that we could build out that plant and drop this vehicle into that plant and start making these units, an incredibly difficult task. And without simulation, without the ability to plan all that in a digital space, we would have never gotten to the physical space and been as fast as we were getting that in and robust and operational. Next slide, please. So a little bit on the platform and why we use the platform and what's the value of it in our business. Next slide, please. So there's lots and lots of dimensions of key performance indices that we worry about in our business and our work that we do and the products that we make and how we go about making those products. But really big ones, and I just wanted to allude to 2 of them, is certainly time to market. To be really good in this business, to be really cost effective in this business, you can't take a lot of time developing a product. You've got to be fast. We've leveraged the platform even for a new young company to do the R1T and the R1S pretty darn fast and the RPD really darn fast. And we look forward to future doing product development even faster. Time is money in these things, in this space. And so that's a really important 1 for us and the one that we leverage the platform, too. And then just as important, and again, I've only alluded to 2 that, I think, are really significant is post-release changes. Geometry is true. If you can define it in geometry, if you can simulate a geometry, if you can validate it in geometry, if you can manage it in geometry along with all the other data that we need to manage, you've got a great chance of being really, really good right out of the gate because you're going to find all the issues. You're going to know all the things that need to be repaired. You're going to validate your repair and when you launch. You don't want to have changes after you've released. They're really, really expensive, both in terms of time, money and just energy required to deal with those things. So this is a big deal. It's a big reason why we use the platform. We have all that data in 1 repository. We can do all those studies without having to really spend a significant time sloshing data between different systems, right? We do it all in the platform. We manage all the data in the platform. We mature, We identify the issues, [indiscernible]. Next slide, please. And then just to cement that idea, you can see it here. We've got the platform there, and we do our full life cycle work on this thing all the way from product definition to verification to our process definition. And there'll be more [indiscernible] we'll talk about here in a minute as we look at expanding the platform's usage. Next slide, please. So just a little bit of the growth of the tools, if you will, just a tools view of it. Just did a couple of data points. Back in 2015, there are about 15 designed seats primarily CATIA, we had about 1 terabyte of data, give or take. '19, we had a kind of an inflection, a pretty big inflection. We went to about 800 users of all the tools, 400-or-so in design and we brought in the full suite of tools for it. And then if we fast forward to today-ish, got about 1,200, maybe a few more, designed seats along with, you can see the other statistics on SIMULIA and DELMIA seats, and we're pushing 60, and I think we're kind of growing exponentially so it's probably 100 to 120 terabytes of data, as I talk today, and with scale. It's a big-scale thing, and it's pretty encouraging to see that we can do that, and we're remaining to be very effective in our design work. Next slide, please. And then just to conclude, where do we go from here? So the platform, maybe from this side, whenever I interview maybe somebody that's going to come into the company and say, "Hey, somebody on a scale of 1 to 5 in Gautier, where do you fall?" And anybody who says they call over -- they rate themselves higher than a 4, I usually say, "Thank you very much. We'll see you later." It's such a broad and deep and sophisticated and extensive tool and the same thing applies for the platform. So lots of opportunities to leverage this platform more versus big data in that R1T that I showed you just within the platform, and I'm not talking about like miscellaneous documents. We had over 30,000 instance objects on that vehicle program. It's a massive amount of data. And when we go and expand that vehicle by vehicle along with other things we're bringing in, this is what we're going to leverage the platform to. And the reading across the top row, supplier integration. The world is becoming more ubiquitous. We work with companies all over the world. And it's a big project we have underway right now to integrate them into the platform so we don't push data around. Pushing data around always is an opportunity for mistakes. But we have to manage that with responsibility. We have to manage that with security, but we have to do it. So that's a big project on our plate and then reading down in the lower left-hand corner, enterprise collaboration. We have lots and lots of applications at Rivian. I'm sure many big companies do that. And the strategy right now is to consolidate and understand where we should optimize and do those applications. So just a very simple 1, for example, issue management, right? Should we be doing issue management in the platform or should we be doing issue management in some other application? The platform has a lot of opportunities, again, given the integration to the tools that we use to do things like this more effectively. So that's a big project on our plate. And then lastly, information intelligence. So now that you have all this data, you start mining it, understanding what to do with it, "Hey, how did we do on weight? Hey, how did we do on costs? Hey, how robust are these suppliers? Hey, what kind of [indiscernible] usability do, right? What sort of things can we understand better about the data that we have? And then also how do we interface with the various external customers?" So Amazon is a huge customer for us. They're a very sophisticated customer, and there's a lot of information that we can exchange and learn from what we call a B2B model, so primarily a business customer. And then the same for our customers, our buying public customers. There's lots and lots of data that's being generated and out there that would be very useful for us going forward with the products we develop. So these are the kinds of things that we're looking actually with the platform going forward. I will conclude there because I think we're at about time or a little over, and I'll open it up for questions.

Thank you, Barry. This is an amazing success story. Thank you for sharing this with us. And I'm sure there will be a few questions in the room, and let's get going. What was the question? I see, Jay, you have another question, please? Then we have maybe time for 1 more. I saw, do you.

Thank you, Rouven. Jay Vleeschhouwer. Barry, you gave a very similar presentation 2 months ago at the Coke Conference in New Orleans. And there are 2 things from that and today's presentation, perhaps you could clarify. Number one, you refer to simulation as an essential process, but it wasn't clear then or today if SIMULIA was your sole simulation tool or if you also employ other tools for simulation process. And then secondly, 2 months ago, you said you had a "massive effort" around DELMIA. Would you expect DELMIA to be the leading edge of your expansion of the use of the platform? Or would you expect to expand with other DS tools as well?

Okay. So for the first question, we're engineers at heart. So engineers love to have great, big toolboxes, right? It's not 1 hammer for all applications, right? So while SIMULIA is going to be a very important tool to us and something that we're spending a lot of time with, we're certainly going to keep other tools in our toolbox where we feel are appropriate and integrate them into our solution. So yes, it's a big part of it but certainly, there's other great tools out there that we'll leverage on. Relative to the DELMIA question, I think it's a twofold thing. Certainly, we have lots and lots of work going on in that space. If you look at our MBOM structures, they're just massive, which is really cool. And then the platform has a lot of other things to offer and these become enterprise architecture type decisions. So it's a very serious endeavor we're going through right now to understand our application workspace now that we -- our footprint, now that we've grown up as a company and identify what applications we think would be best to -- suited to live on the platform.

Okay. I saw another question here still.

It's Charlie Brennan here from Jefferies. Just 2 questions for me. Firstly, you spoke about the breadth of the solutions from Dassault. Is it easy to understand the range of functionality that Dassault can offer? And is it easy for you to understand the pricing of that functionality? Or is there just too much complexity with all of the different SKUs within Dassault for you to easily consume? And then secondly, in terms of the consumption model, can you just talk about whether you opted for an on-premise deployment or a cloud deployment and what your thought process was behind that?

Sure. As far as the offering, like I said, it's a very deep well and that's a great thing. So actually, part of the Dassault team is here in [indiscernible] this week, going through kind of this exercise with us to understand what these things are. So I don't think it's terribly difficult to go through all of that. The Dassault team does a very good job explaining what the product offerings are and how they are configured. So I think once you get into that a little bit from a technical standpoint, it becomes fairly straightforward. From a pricing standpoint, I'll have to admit, I will have to defer that to one of my colleagues as I'm the technical guy, not the money guy. And then I'm sorry, the second part of the question was on the premise or cloud. So we have a really good relationship with Amazon. So we have a really good Amazon AWS services, so that's our cloud, if you will. So we've got the platform running on the AWS cloud. But we are looking at the Dassault, and forgive me for my technical or lack of technical jargon here, we are looking at the Dassault Cloud for a certain set of applications that we feel might be very relevant to have that capability. I hope that answers your question.

Yes, okay. I think with this, we can conclude. Thank you so much, Barry, for the great insights, and thank you for your partnership and trust.

All right. Thank you. Have a wonderful afternoon.

Thank you.

Okay. So now with this, it's my pleasure to welcome Toshiko Mori on stage, our Lead Director for Sustainability, to give us insight into our ESG commitment. Thank you.

Thank you very much, Rouven. Thank you, everybody, for attending. Welcome. And it was very nice to meet many of you last night and also during recess. I'm an Independent Director of our Board and this is my last year. So within nearly 12 years of service, I have seen so many changes. I have to tell you, never a dull moment of being a Board member because Pascal and then Bernard, they always come up with new ideas and new way of approaches and innovation is in DNA. And then I also have to say, I have the pleasure of serving in Scientific Committee for all these years, which means out-of-box thinking and oh my God, what are you thinking about? I thought I signed up for engineering company, but you're thinking of life sciences now. So these are critical moments I experienced over the years and it's been an inspiring experience. I'm an architect. I have an office in New York City. Also, I have been a professor at Harvard University Graduate School of Design for the last 27 years and then I'm the Chair of Department of Architecture so I'm familiar with design. I think in my school, we teach students CATIA. And then many of the architects, as you know, we design with CATIA. And as you pointed out, before that industry is fragmented, so we have to do patchwork quilts of software in order for it to be built. And I can explain a very interesting way of handling that crisis. It's an industry crisis, it is not Dassault crisis. My career has been sustainability-driven. And one of the examples I can present today is a cultural center in Senegal in a very remote community, very poor, very underserved community and it's very famous for -- it's been famous for instability in terms of public health, high maternal death and infant death. And it's built next to a clinic, which over the 20 years, they have actually made that 0. So within what they do is really essence of sustainable community, which means 1 builds sustainable buildings in the public health and multiple drivers that requires in order to make this otherwise unstable community stable. And this is an example of a building which was built with the local materials, a local craftsman. But when I was building it, I realize that they are facing a water issue as opposed to a TOPO, Bermuda, they have a practice of collecting rainwater from a roof. They did not have that. They had abundant aquifer but it's been drying up very rapidly because of climate change. And if 1 person is digging a well, the other person's well is drying up. So the idea is with the doctors, we collected data of how much water goats and cows and horses are drinking. And we actually have very interesting data to figure out how much water they need to go through the entire year. And we feel that if they were able to collect rainwater, they can completely survive it through the dry season. In our center, we supply 30% of village need overall, which is a critical number because girls stop going to school after elementary school to help family to go collect water in further spaces. So in a sense, it's a social problem. And after a couple of years, when we build it, women in the community form an economic consortium to start raising their own vegetables, high-priced vegetables. This is actually mobility technology. If we get at the prices, what's high price, not the peanuts, not the bananas, not eggplants and peppers. So with this community, women were able to make money, also contribute to the economy. And also nutrition and public health stabilize the community. And also gender quality, they were earning as much as men. And also, it really made a community more thriving in terms of this particular thing. So what I'm trying to say is that root cause of elemental sustainability has ripple effects. It has multiple benefits to the communities that we can't just ignore just looking at the numbers is something. The climate crisis ahead, as you all know, is really impacts everyone. And that was a small example but it just is so multiplied by so many layers that, as you know, a rise of temperature 1.5 degrees centigrade will have irreversible effect. And if we kept going, it's predicted to take place in 2040. We only have 18 years to help ourselves from extinction. So it's really in a very crisis mode and development doesn't help and feasible solutions are there but it needs to be effectively deployed. And there is still a window of opportunity but it's closing very rapidly. So in a way, I think I joined the Board as coming from a construction sector, which is a big culprit. We account for nearly 40% of energy-related carbon dioxide. Electricity use in itself accounts for 30%. Out of that, majority is lighting. And then -- so if you really figured it out what is causing building sector, well, we can easily track it back. We can improve operations, maintenance of buildings is a big factor. Energy is not a static element. It keeps getting used. And then implementing comprehensive policy and to use effective and carbon -- low-carbon technology and better design solution is what we need to do. But as I mentioned before, one of the advantage of Dassault Systèmes solutions platform is that it helps to unite fragmented industry, as it's mentioned in your questions before. Because of -- especially in the United States, we practice rising insurance rates, high rate of litigation and the cost, everybody is suffering. Supply chain crisis made everybody realize we have to integrate or else we can't survive. So it's not as if our software is there but industry is in the state of catching up with integrated design delivery process. And we really have to work on it because 100 active fossil fuel producers account for 71% of global industrial GHG emissions. So in a way, it's easy to say, let's change it to renewable alternatives, as Barry had mentioned before. That's actually really fast action process we have to deal with. But the rate of acceleration was so great that all of our CO2 emissions since 1751, more than half of it was done in 30 years. So we have done this incredible practice of just building, making things, throwing things out without caring about its impact. So again, if we are the ones who are responsible, we know what we did wrong so we can actually help save that. As Florence mentioned before, it really takes 94 trillion by 2040 to keep pace profound economic and demographic changes. But -- and also, this is another issue of how much it's going to take capital spending on physical assets for energy and land use system will need to rise by 3.5 trillion before it was projected to be close to 6 trillion. Now 9.2 trillion, that's a lot of money. And it's a real crisis. But as I see it, crisis and opportunities are just 2 sides of the same coin. So for Dassault Systèmes, this is an amazing opportunity. And this is a company that can be agile and fast-footed and move right in to try to solve these other issues. And now walking the talk, I always relate to -- this is my organic garden in Maine. It took me decades to have a [indiscernible] for many different species to grow. But Dassault platform is ready-made [indiscernible] It's all delivered to you. And then with many different plants or the brands that's growing on, and on top of it, it can harvest, deliver your food. As said that it has continuous possibility for innovations, which means continuously harvesting new ideas, new businesses. You may not have to change your business very much, but there comes all this benefit that comes when in this system. And with this system, as you know, 17 goals of United Nations Sustainable Development, there are 17. And it's not as if we are attacking 1 by 1. As I mentioned before, in the first example, this issue of poverties and nutrition, the gender quality, all of them are quite related together. So why can't we actually integrate when we are actually doing a sustainable business development? We look at what are the benefits, not just look at the bottom line business opportunities because future of a company, it's going to be your legacy. That's how people will look at it. I mean, it's how much money you make, yes, but what's the legacy, what's the true legacy you believe in? So that's where ESG, environmental, societal, governance, these metrics are very, very important. And I see as a Board representative, everybody is working really hard. This is not easy. If this was easy to data collection and then managing them to make sure to maintain and predict evolution to make sure it's going in the right direction. If it's easy, it's been done. We are not here but we are here. And I see really hard work of everybody daily, weekly, monthly, quarterly, I meet with the committee, with the whole [indiscernible] and Thibault report to me. But at the same time, when they are actually doing the work, I see high morale of employees because they like to see their company contributing to improve the world. And it's really a wonderful idea for them to be doing work in a company that is doing something to help the entire rest of the Earth, rest of the planet. So I think this idea of a mission of providing business people with 3DEXPERIENCE, margin, sustainable innovation capable harmonizing product, nature and life, I would say, I'm very proud to say, as a Board member, that we are walking the walk and just not talking about this whole situation. The company's sustainable commitment, as I mentioned and mentioned by many people, Bernard and Florence is carbon-neutral by 2040. 2/3 of new licenses from sustainable solutions by 2025 and engage 5,000 stakeholders on sustainability by 2050 -- 2025. But Board, we think they are too conservative. I think they should engage 5 million stakeholders in sustainability because the platform is capable. And I think why not go more ambitious, especially in this particular agenda on sustainability? And I mentioned before, it has a brand which is science-based knowledge in the industries or the industry know-how and many diverse geochannel territories. So in the diagram, you see it but I see it as a really fantastic, beautiful ecosystem which I relate to a large virgin forest in Japan. Ancient Japan, where there is under stories, over stores, many species of trees grow together because their root system communicate with each other. So if I can make a metaphor, it is just like the forest so that it's not only their own species, they are all helping young species to grow, and that's how forests managed -- it for tens of thousands of years, and that's how we need to manage. And that's how I relate the ecosystem with this ancient forest. And as Bernard mentioned before, It's a virtual world that extends and improves the real life. It comes back to us. It's not like a metaverse. I have nothing against it. Students love it but it's that what I think what the Dassault Systèmes platform does is it really informs and improves. And it's probably one of a very few platforms available which can fight against the speed in which it needs to act. As you can see, I said before, we got 18 years and how many platforms or solutions we have to fight against this time. And as Barry mentioned before, the simulation technology and Bouygues trim potential mentioned by Florence, that's actually an incredible asset of this particular solution, and it has economic value and 7.5-gigaton carbon dioxide equivalent with that's actually for 2030, but actually equivalent of a global carbon emission of all the transportation. So it's really very big numbers. And these are usage which have been discussed by previous speakers before. And lastly, you've seen this diagram before. But from an architect's point of view, it's a very interesting diagram. It's just not a linear loop. As Pascal mentioned, it's going to circular economy. And on top of it, it has multiple strengths. It's a woven system. It's not a static system. It's a dynamic system, which means if there is a problem, it can start to identify the problem, repair itself. And then if well actually produce other innovations through everything to the loop. So I think with this, I'd just like to end my talk about my belief in Dassault Systèmes, in my observations, and I've been very, very happy to be part of a member of the Board. Thank you so much.

Thank you, Toshiko, for this very insightful and very well prepared presentation.

Thank you.

Thank you so much. And now, Bernard and I think Florence, Pascal? We have 5 minutes for questions. Let's get started. I can't see anything. Do you have questions? Okay, good.

Toby Ogg from Credit Suisse. One for Florence, just on the infrastructure and city side on the portfolio. If you think about the existing solutions that you have available for these different groups, that you've mapped out, are there any key areas of software functionality you think it could make sense to acquire? And what are the kind of characteristics of any potential acquisition that you're sort of keeping in mind?

Thank you very much for this question. I thought it was a Q&A on sustainability. But nevertheless, indeed, we are working on the 6 domains that I've shown you. Earlier on, these are really our 6 domain where we invest in a lot in research and development and are looking for partnership. As I said, we also have really an ecosystem strategy like we're trying to bring the ecosystem with us. So other than M&A, we are looking a lot at partnership and ecosystem building in order to transform the sector.

Thank you for your presentation. I would like to ask a question about sustainability. I know that you have a solution that provide the carbon consumption of a product along the life cycle. But do you have a solution in order to calculate the Scope 3 of emissions for companies, for example?

Thank you very much for the question. In fact, Scope 3 is super interesting because what we are doing when we do the virtual twin of the supply chain is optimizing the supply chain. So we are able, depending on the information our customers have on their supply chain, to optimize their CO2 consumption. We did that for a company called Emmi's Kitchen. Emmi's Kitchen is a company who is basically going -- well, food manufacturing in the United States. And they really wanted to be local and reduce by 30% their CO2 emission. And they managed to do that via our Quintiq solution. So we can do that, but we also are depending on a lot on the information that is available within our customers.

And maybe 1 question on sustainability as well. We've seen a lot of companies struggling to produce anything meaningful around the taxonomy in Europe. Is there any way for you to help your clients in that journey and a way to monetize it?

Thank you very much for this question as well. With many companies struggling with the EU taxonomy but Dassault system is not struggling. We are working on our own EU taxonomy and when Toshiko was mentioning that Bernard and Pascal have committed that by 2025, 2/3 of our revenues will come from sustainable solutions, that will be solutions that have been designated -- validated green by the EU taxonomy. So we have -- we are doing work on that. And this is always, as well, to validate our sustainable solutions. When it comes to our clients, what we are discussing with them is not so much the green taxonomy but really how to really help them to be sustainable. Our clients have the -- have taken a lot of commitment regarding SBTi, Science Based Target initiative, which means becoming -- getting to a level of emission which is consistent with the Paris agreement. And in order to get to this level of emission consistent with the Paris Agreement, you need to do a lot of model and simulation. What are the first action you need to do? How do you need to redesign your product? How do you need to improve your supply chain? And they can do that with the platform. So we are really helping them on the SBTi approach.

Florence is very modest but she is very active to help the organization in Europe to really establish comprehensive parameters. You speak about SBTi, but really because it's part of the taxonomy conversation on the green passport, it's how is it structured so it can be used by industries in France directly involved with those organizations to help them understand how it could be instrumented. Because if we get the standard and Europe is very active, more active than most of the other countries in the world to really define, to really define this not only the taxonomy but the approach, how we measure, how we plan, how we improve. So we are directly involved on those topics and what we hope to do from there is to basically have the platform ready for the implementation by our customers.

Just 1 more. Clearly, obviously, many organizations are committing to their sustainability targets, which is obviously committing themselves to specific investment road maps. I guess just given the sort of more unstable macro environment, how do you see the impact of the sustainability road maps, which I guess are more fixed in nature on the sort of overall cyclicality of your business?

Frankly, it's difficult to predict at this point in time. We do not have enough. But the impact will -- clearly, it's a topic which is on everyone's agenda, as you mentioned in your question. So it creates a traction. I have a concrete example. Many customers are trying to just track some data in their companies, just understand. You have seen that many companies are using basic ERP system to track energy that comes in, materials that come in just looking from purchasing from the floor purchasing. But we all know that this is a very small part of the topic because it will have to be by design. Materials are going to be substitute -- we need substitution materials. We need new process. They need new processes. So that dynamic is very diversified depending upon the industry. It's clear that there are certain industries where the cycle time to just certify materials usage for safety, for example, like aircraft will take much more time. But there are also areas where we can really go much faster on areas which are having a big impact. So how all those combined effects are -- could create , first of all, levers for accelerators in growth and also stability within situation where there is gigantic volatility from the economy standpoint, very difficult to conclude at this point in time. But everyone is confronted with it. And you -- all of you know also that the portfolio of most of our customers must and will evolve faster than ever in the next 10 years. And this is where we are, by design, more sustainable environment.

One last question. I'm very pleased that you have been SBTi-certified. According to my understanding that the certification does not include the Scope 3 of the use of your products to your customers. So can you confirm this element? And do you think -- what time frame does Dassault wish to also help your customers? As you just mentioned, as you use, you -- are you going to reduce the consumption of electricity of your own platform at the customer side, please?

That's a very good question because actually, we are working on that. We are working on a project together with Michelin exactly on that, identifying how much energy is used by the platform. And what is the platform bringing? So we will have real audited calculation of what we are like what we are reducing at Michelin and what is the additional cost to Michelin. So studies should be released hopefully by September. So we really have the numbers and we have decided with Michelin that we will communicate on it. But of course, you will see that the effect of the platform are massive for Michelin. And what we are doing with Michelin, we are now replicating it with some other customers at the meantime because this is really a question of our customers. And they really need as well to prove what they are doing to reduce their own emission. And basically, well, this is that the platform has a massive lever.

Rouven, if you allow me, thank you, if you allow me to add 1 comment, first of all, we feel very lucky at Dassault Systèmes to have a great Board member. Toshiko Mori with us for almost -- 12 years now. You can imagine with her passion that it has been an incredible stimulus for us to really invent, as she said, with humor, invent every -- at every Board and get with new ideas and share these new ideas in the Scientific Committee at first. after in the -- as the Lead Director for Sustainability. So thank you very much for all this incredible attention that stimulates our imagination and also your very high empathy for what we do. Really, we think that this is also the philosophy of Dassault Systèmes. Thank you very much on. We appreciate -- Dassault Systèmes is what it is, thanks also to your help.

Thank you.

Okay. Thank you. I was just connecting and turns out we have no break now. We just continue because we want to make sure we will be ready for Q&A and wrap up by about 5:30. I think that's our goal. So now it's my turn to conclude and also, it's my pleasure to now turn your attention to the financial strategy. You heard throughout the day how much proof points we have gathered, the conviction we have, the position of strength we are in and that our strategy essentially is working. And I think really importantly, we have a plan to execute. And this gets me now to the start of my presentation. Yes, I have 4 key messages that I want to start off with, and it's kind of the structure of the talk that I will share with you. The #1 message is we have consistent execution. We have a track record of delivering consistent financial results. And we've been doing this for a long time. Second message is while we have the track record, we also have room to grow. So we're always building and investing for the future. Third message is, as you heard throughout the day, we have clearly defined growth levers and a strategy that we have operationalized with our -- with the cloud strategy that I will be giving you some more details on how we operationalize it, but our platform strategy, the diversification that we have achieved as a company as well as the strong domain knowledge that you have seen throughout the day in the presentation from all the sector leads, this positions us really well. And then the fourth point, we talk about the multiplier effect that Pascal introduced this concept. It's really for us, and when I look at this through the eyes of the CFOs and the financial perspective, it's really bringing together those strong assets that we have put together with our financial strength to really create an ability to advance our strategic priorities that we have as a company, now midterm as well as with a long-term perspective. So just a very brief look, and I know this is looking backwards, you are more interested in looking forward, but give me some time to get you to the forward-looking piece by giving you also the reasons to believe that what we have done in the past is really giving us the confidence as we're looking into the future. You heard this morning -- you saw this morning in the announcement we made during -- as part of our press release that we are confirming our objective that we are on track to achieve the EUR 1.20 by 2024 in EPS. That's the first message. Why are we confident and why are we able to confirm this is because of this consistent execution. We see a solid revenue growth for a decade with 10% on average. And we are doing this while at the same time, we are working very hard and focused to accelerate our conversion to cash. I know this is very important to us as we are building our position of strength. And you see a number of proof points later on, why this metric matters a lot to us. EUR 1.6 billion of cash generation in 2021 converted from EBITDA. Now we have the proof points, but we also -- we have the room to grow. As I said before, right? Pascal talked about this, our TAM. We have a $45 billion TAM that we operate in. And this compares to today's revenue of just about EUR 6 billion. So we can say we can grow 8x in this TAM. While at the same point in time, the real potential market opportunity is EUR 100 billion. And we are only serving half of that. So we could capture an additional EUR 50 billion as we are innovating and driving innovations to our customers and opening up new possibilities to address this potential. So clearly, we are not opportunity constrained. So now with this, let me zoom into your questions around business model and cloud adoption. First message is we are accelerating our recurring revenue growth. You see this here on this chart, that since 2018, we actually doubled the rate of recurring revenue now to 16% in the last 4 years. And why is that? Because we have a very strong and resilient business model, which provides approximately 80% of software revenue is recurring. And that is, of course, in parts due to the acquisition of MEDIDATA, but not only. And of course, as you see here on this slide, the cloud is a big catalyst of this trend as well. And just to make the point, it was coming up earlier before during Q&A, we have a very sizable and significant cloud business already today with EUR 860 million that we recognized in 2021. And you know we gave you the target of EUR 2 billion by 2025. And so on the next slide, I will give you some insight in how we are going to do that. So this is a way to structure, right, and to look at the different growth dynamics in our cloud business and how we are looking at the acceleration that we are targeting for cloud revenue growth. So we have multiple levers of growth, as you see here. First, we know and where we have made our commitment of 13% to 15% revenue growth in the Life Sciences for the life sciences sector. You saw this a couple of times on the slide today. That's all cloud revenue. And of course, there are a number of different drivers in this 13% to 15%, and I start with the first one, which is the largest one, is a MEDIDATA data management platform, which is today the -- by far the industry leader in this segment. And I remember years ago when at MEDIDATA, most of the analysts were questioning us how durable is to growth for MEDIDATA rate? Is it really sustainable? And how long can it go? We are very convinced that we can continue to grow this business by mid- to high single digit, right? And for the next 3 to -- until 2025 at least. But on top of that, we see very strong demand, as you heard from Anthony and from Tarek about Patient Cloud, as we see the decentralization of the clinical trial -- of the overall health care world, right, and the clinical trials, they have to evolve as well to become more decentral and provide more access for patients, to the network as well as in MEDIDATA AI with a great proof point, I think that Sastry shared on our strategy and how broad we are looking for ways to monetize our data assets in a very unique way. So these are very strong growth drivers that give us the reasons to believe and the confidence that the 13% to 15% growth for that portfolio is very doable. And then on top of this, we see the brands like ENOVIA and DELMIA becoming an important growth driver in this sector because our clients, they need not to -- they need to optimize end-to-end. When drugs are approved, the next question is how do you scale manufacturing, how do you scale commercialization and how do you optimize time to revenue? Therefore, you need to really manage your entire value chain. And this is where ENOVIA and DELMIA plays a very critical role and we see this now more and more emerging and Tarek mentioned the unified go-to-market that we've created. This is really tailored to bring these solutions to market and accelerate growth. Now this is the life sciences sector, right? On top of this, we anticipate an acceleration of 3DEXPERIENCE work HomeByMe, you saw the great presentation by Philippe earlier today about what we are doing with IKEA and how we are able to find new audiences that are cloud-based as well as Centric PLM progressively to contribute to the cloud growth in the mainstream market. These are a very key strategic objective for us and essential -- really essential to achieve our $2 billion target. And of course, on top of that, the 3DEXPERIENCE platform, which you saw today is the platform for innovation, engineering as well as for business. So many of our customers who are Dassault Systèmes customers for a long time and have a large installed base, which you can call legacy, but they are very valuable assets that they have built on premise, they need to find a way to transition to the cloud, and that's where they need to adopt the 3DEXPERIENCE platform. That's a key driver of growth. You saw a number of examples today. But as well, we see a lot of growth contribution from the newcomers or the shakers that are starting in the cloud essentially from scratch, and they can scale very fast, as you saw on the Rivian example. So now if you put this all together, overall, we are confident to achieve our $2 billion revenue target by 2025, which implies a growth rate on average of 23% to 24%. Now let me switch from here to the platform and the platform adoption. And why do I do this here because the platform is really the underpinning of our growth strategy. And it's really essential to understand that for our cloud growth. And you saw this today, our platform is user- and data-centric. And that's why we address different audiences. With 3DEXPERIENCE, it's the platform for enterprises, for professional users but also more and more for B2B4C as you connect to the consumers and customers of our customers. And that's the core and the core piece for us to expand and drive value and change. Then, of course, we have the MEDIDATA platform for the patient and the practitioner. And we have the platform for the HomeByMe consumers. And if you look holistically at this platform approach, these 3 platforms today generate 45% of our software revenue already today, and we have good reasons to believe that now with this strategy, we are on track to achieve the 2/3 by 2025. And you have the great examples here to the right. We walked the talk in implementing the platform and driving value with our customers. I guess most of you are familiar with the Toyota example, but this is really around expanding from the traditional design space into collaboration and integrating the supply chain, which is a massive potential for us and for Toyota. And Moderna is probably one of the greatest examples to see how we can scale a company that used to be a very small biotech firm today into the leader in mRNA technology and the ability for them to reach -- to develop new cures for patients that haven't been solved today. I think Moderna will make a big difference in that and we are a part of this. And the IKEA example you heard today. So for the cloud, I talked about this. We have 3 things that I want to really emphasize here. The first 1 is the cloud is about new usages and the cloud is about business model expansion for us as a company as well as for our customers. And we have a clear set of targets that we have developed that I also spoke about, which is 2 billion, and we have the reasons to believe and the value proposition in the cloud. I think that's very well articulated. If you go through those 1, 2, 3, 4, 5 customer examples, and I want to highlight this. You saw it earlier today for Rivian, it's really about providing scale for a company where you heard it's all about the time to market and the speed, right? We have to look at how we -- how they can scale the operation. And that's where 3DEXPERIENCE in the cloud makes a difference. For Renault, it's for them a way to break the silos, reinvent the companies and connect all the stakeholders. And that's where 3DEXPERIENCE makes all the difference. For class, it's about efficiency, productivity, cost management. It's where the 3DEXPERIENCE in the cloud makes the difference. For Bloom, it's a partnership. But for us, it's a way to bring social data, behavioral data in a very targeted way to our clients and to our -- to the use cases that makes a difference and really enriches the power of 3DEXPERIENCE in the cloud. And think about 3DEXPERIENCE and Bloom, right? The data is cloud-based. It's on devices anywhere. So you have to be, by definition, in the cloud if you want to experience and want to bring social data into your decision-making process. We talked about NAAREA earlier today, but I want to highlight with NAAREA, the point around compliance, right? They're in a business that is highly regulated. And one of the key things that you have to do in a business that's highly regulated, you have to have end-to-end traceability and auditability. That's what the 3DEXPERIENCE platform brings to NAAREA and helps them to really scale their business and be successful. This is -- with this, I actually want to switch to another important point, which is our decade of delivering profitable growth. And the reason why I do this now after cloud and all the innovation that we are driving is really to make the point that we are reinventing and we are investing into the future. We are building new business model in terms of our cloud approach and all the investments we make. And at the same point in time, we are able to show that we can improve our margin over the last 10 years very consistently. So we are not compromising our profitability as we are expanding in the cloud. We have -- as I said before, we already have a very sizable business that is cloud-based, that is reflected and included in these numbers, and we have been able to increase our profit margins by 40 basis points while we are doing this shift in a very disciplined way. On top of this, of course, you know us, we are acquisitive. We look at a way to drive growth, organic as well as inorganic and through partnerships. And when we do that, we always are confronted with the situation that we have to offset dilution from acquisitions. And that is something, and I want to show this here just as a framework on the other side of the slide, is every year, we generate a certain percent of operating leverage that we are able to reinvest into R&D as well as into sales and marketing to really expand and get closer to our customers and expand our reach as well as to really progressively offset dilution from acquisitions over time, right? It's not our goal to do this within 1 year. We have a plan in which we do that, but we have the means and the tools depending on where we are in this process, organic versus inorganic, to really take these levels up or down the way it makes sense. So that's really our model. So all the investments, all innovation, business model innovation but at the same point in time, very disciplined on the margin and the operating framework. So this leads me to our investment strategy in talent, domain and global reach because that's at the heart of our strategy to ensure -- to deliver long-term growth. We talked about earlier today. We're a company that operates at the intersection of technology and science. For that reason, we are focused on education and learning. We are focused on partnerships with university and finding the best talent in the market everywhere in the world. You see that on the right side of the slide, our presence in terms of where we are [indiscernible] in the world. And that's really one of our strengths, that we can tap into all these talent markets and build and further grow Dassault Systèmes in all those markets with all the domains and industries that we serve. And maybe the last point here is you see the pie chart. 29% of our population, of our people are in the Americas, 39% in Europe and 32% in Asia. I think that's a really strong statement in terms of the diversification we have and how we are able to capture the world. And also the proximity to customers is really critical in this. Investing to fulfill our purpose. What's behind this? We have a growth-oriented capital allocation strategy, and that's really based on 3 pillars. Number one, we have a very strong liquidity position. That's a core foundation. As I said before, cash generation is something we are very focused on. And that's also reflected in the recent upgrade we received from S&P where we are now listed as a single A-rated company, which is a proof point of this strategy is acknowledged and that we have been able to do this while we have been in a pandemic as well, right? We have delevered while we are really working against all these forces. And number three is we have a consistent framework to pay back to our shareholders via dividends as well as stock repurchases. And secondly, while we are focused on making strategic investments into the future, organic, inorganically and partnerships, as I said before. The bottom line really is, we have the financial flexibility to advance our strategic priorities through organic and inorganic acquisitions. And that's really what's behind the multiplier that we talked before. You really bring the position of strength that we have created for us, right, with all the investments we have made for many, many years, plus our strong financial position helps us, really, to advance and accelerate our ambition. So I want to close the way I have started. The key messages are also the key takeaways. We have the track record. We've built our ability to continue to grow and expand our markets. We have clearly -- we have the levers clearly defined and operationalized. And the multiplier effect, that's our opportunity to accelerate our growth. So we are very confident in our long-term opportunity. I think we have a very clear strategy. And you also saw we have the subscription model already in place that will enable us to scale also our cloud business. So with that, I would like to ask Bernard and Pascal to join me on stage and take your questions for the next 15 minutes. Thank you.

It's Laurent Daure from Kepler Cheuvreux. I just have two questions. You explained well the growth you're going to have in cloud. But could you elaborate a little bit further on the profitability of your cloud business? I'm thinking about gross margin and especially the difference you may have between the private and the public cloud offering and how it will trend going forward given that the mix of your cloud will also shift -- and my second question is on your M&A, but more on the discussion you may have on valuation. Given that the stock market is collapsing right now, do you start to see the seller being a little less aggressive in what they want in prices? Or do you think it's going to take a bit more time given that [ we ] still have a lot of money to invest.

Yes. Thank you. Thanks for the question and a great follow-up. On the margin. For the gross margin, yes, there are different level of maturity that are always reflected in the gross margin, but you can think about it categorically, it's between 85% to 90% gross margin. So we are very profitable in the cloud. We also offer various ways. We have the public cloud, but you also have the private cloud offering, as you said. And while the private cloud is more, I would say, tailored for the specific needs of an industry or a client, but it also creates an incremental value, right? And the way we position that is that we are actually able to monetize that incremental value. So when we are creating private environments and dedicated environments, it's really important for us to make sure that this value is reflected in our pricing, and it's not comparable to a public cloud offering. And that's why we are able to protect our margins. Yes.

Maybe I can add a few things about this. First of all, what do we define as cloud, which is also a good way to start. We put in the cloud category when we are managing the cloud operations on behalf of our customers, which basically means when we are selling a license and this license is used on the cloud by our customers, and they are operating the cloud with their IT department. We are not containing them at the cloud. Why so? Because we charge for the operations guys, it's not free -- so unlike many of our competitors, they have to pay the cloud infrastructure to AWS, Azure or Google, whoever. And at the same time, they are not charging additional services or operation on top of. That's not what we do. And this is the reason why, again, if you look at the profitability between the cloud solutions and the on-prem is equivalent for us...

And the M&A question, maybe very brief. I think we'll see, I would say. We're going right now through the time where the multiples are significantly coming down. So in the public market, it's obvious, private markets, it's all about expectations. We are always active in terms of screening and exploring M&A opportunities. And it really comes down to multiple factors, valuation, of course, is one. And it was difficult in the last 2 years because prices were extremely high and expectations were very high. And I think now we are coming more towards a moment of clarity and real valuation that gives us much more opportunities.

Yes, that's a factor. There is another factor, which is quite important that you need to understand. The profiling of the company has changed a lot in the last 3 years in a big way. And that was our job to do that, make sure it would be understood, and I think you understood it with the positioning. There are massive consequences. It's not only on positioning, we have the proof points of our position with those customers. There is a second effect. The current taxonomy of the industry is evolving massively. All supply chain in the world is not going to be the same. The way the value are going to be splitted between players is changing at a speed never seen before. The consequence for the strategy that we have expressed, I think we've, hopefully, clarity, the targets have changed a lot. On the scoping -- of what we were doing 3 years ago, on the scoping we are doing today are very, very different. This does not help you because you want to know secret that we don't plan to deliver today. But at least you will see a policy going on, which is extremely consistent with what we have done around the last 30 years, 20 years, 40 years, which is it is aligned with the strategy. However, it's certain expansion necessary of the old way of thinking. It's going to be adapted to the way the sector of the economies are evolving. So it's a good thing. I love this perturbation in the market. I think some of the investors are crazy, frankly speaking, not to pick an investor on us. But on betting on even companies they have seen doing DCT with noting and then now we crunch them. Thank you, Antony. But in many other sectors, well, valuation was absolutely unreasonable. And they are going to pay the price because I don't think they will ever get the return on investment, and we need to use that situation. So for me, I love when there is a tough environment like this. Now I know it's okay and people are concerned. But frankly speaking, we know where we want to play on how the framework of this dynamic will evolve...

Stefan?

Thank you, and thank you for all the presentations today and the dinner last night, of course. Two questions. Thank you for the information on the cloud business. Just want to dig in on the licensing side because obviously, the guidance of maybe 10% compound annual revenue growth also assumes the license side of the business continues to grow. And just wondering what kind of visibility you have on that? Is that mainly with existing customers and programs that are underway, and therefore, that's actually a high degree of visibility on the growth of the licenses side over the next couple of years? And the second question is just on the CapEx to sales ratio. Do we expect that to increase as the cloud grows as a percent of revenues?

I'll take the first one and you take the second one?

So I still -- it's still a mystery for me why all of you, you want to kill the license model -- because there are certain industries, there is no other way to do this. For example, the defense. Could you believe the guy they will accept that we will follow what they do with the license with the technology? I'm not so sure. So at the end, you have to sell an equivalent of license, even if they will use it by themselves on the cloud. So that's, for example, one of the reasons. There are certain countries where there are political situation where right now, if you are, for example, a Chinese company. Maybe I'm not sure you want to have your subscriptions because if something is happening, it could turn off rapidly. This is again another reason to have this model to continue. So -- and I could name many of them. So just keep in mind that it's not in contradiction to have both. At the end, it's a question of to price the right way. The 2 things, maybe in the future, and it's probably your point, we should price more for the license than to subscriptions. That's maybe a good idea.

Yes. And to build on Pascal on this before I get to the second question, I think also is when you look at many of our customers, right, they are extremely capital intense. They've built their operations for a long time and they need to continue to capitalize on the previous investment. And I think it would be strategically for us, not right, right, if we were to introduce a disruptive change to the strategy. So there will be parts of the business that will continue to consume licenses while other parts are more progressively already in the cloud. And so these mixed environments and the industrial sector, I just visited the big industrial fair in Germany, the Hanover meter. One of the key takeaways that I took from there is that many of our end customers are still very early in the cloud adoption, right? They still are relying on a lot of licenses they deploy locally on desktop. So this opportunity is still very relevant, and we'll need to -- we're serving our customers, right? And we are also working with them on the cloud strategy. So that's something that coexists -- on the CapEx, of course, we do the CapEx sizing based on the cloud demand very frequently. It's actually not something we do annually. We do this almost weekly, right? When we measure the traffic in our cloud and the sizing and capacity that is required. So it's a very dynamic process. But I don't think that the ratio of sales to CapEx is going to change.

And again, we -- you remember, we are using also -- we have our old infrastructure, but we have the ability to use hyperscale. What we have commonalize is the operations, the -- so we have, for example, more than 1/3 of the capacity, which are coming from AWS right now. So in the country where we do not have a critical mass or in a domain or in the region of the world, which is too costly to set up our own data center. We are using this flexibility. So do not translate automatically that 100% will be supported by our whole infrastructure, right...

Okay. One final question.

Yes. One final question with two quick parts to it. Just -- I would like to come back firstly to something that was mentioned earlier in terms of the increased expectation of both industry growth in manufacturing and Dassault growth in manufacturing. I think you've articulated well the reasons for that. But my question is, you previously expected 10% growth. And now with a higher rate of growth for the industry and yourselves in manufacturing, you still expect 10% growth. Wondering if you can comment on that and whether any aspect of that is related to the expectation of bolt-on contribution to the growth? And the second part of the question is, how are you reacting to the current pricing inflationary environment given what some other enterprise software vendors are doing currently?

I can start with the first question. Against the value up and the value wide strategy is the answer. And I did some computations a few months ago, and I make -- I will make a bold statement. I think we could deliver the 10% growth only focusing on the current installed base we have. It's probably not good to fulfill and to nurture the future growth because we are far from having penetrated the large install base we have with everything we do. So that's the reason why we are confident. And there are many, many drivers happening.

This is where the -- no matter what is coming from, just to translate my word on the beginning.

And this is also why we also have certain confidence despite the macro environment. It's because this transformation is really happening. We have a number of large customers who have engaged these transitions and these transformations, and they will not stop, right? It continues.

Yes. On the inflation side, I think there's no update compared to what we said in Q1 call, right? I think from an expense standpoint, we have adjusted our compensation schemes to inflation levels, but we continue to monitor this, of course. We are higher and very successful, so we are able to attract talent in the market despite inflation, yes. We are -- on the top line, on the revenue, there is always some time lag, right, until you are able to get your pricing to your updated pricing, certainly in the indirect channel until that is updated, but we have done our homework at the end of last year to make sure that we have price rate increases reflected for 2022. And in the direct business, of course, we have the ability, as we are in negotiations. We always are focused on pricing for value, right? When we come with 3DEXPERIENCE, we have multiple ways to increase in price for value. So we can always reset that baseline. Of course, we are protected in our support and maintenance contract with CPI protection clauses at the standard. So maybe at this point in time, do we want to wrap up? Yes. Pascal?

Well, first of all, thank you very much. Thank you for joining us at the dinner yesterday for those who flew to Paris, I think it was good to be together physically finally after this long period of the pandemic. It was also good to have all people connected. I hope you have a new update about the fact that we are confident for both the midterm and long term. We will be ready at the right time to share with you the ambition for the next 5 years cycle. But it's a little bit -- you will admit it's a little bit too early to speak about that. Now even if we are very confident for 2024. But we are very confident that before the end of the current cycle, we will be ready to give you the visibility that we have always done for this 5-year cycle dynamic. So have a safe trip back. Enjoy your evening. -- hopefully for -- have a good time, spend your money in Paris. We need that for the country and enjoy your time. We are always there for you. And as you know, we are super committed to continue to serve this industry for a more sustainable world. Thank you very much.