Good morning, everyone. I'm François-José Bordonado, Dassault Systèmes Investor Relations. From the company, we have Bernard Charlès, our Vice Chairman, Chief Executive Officer, and Pascal Daloz, newly appointed Chief Operating Officer. Congratulations, Pascal. Chief Financial Officer. I would like to welcome you to Dassault Systèmes fourth quarter and full year 2019 earnings presentation meeting, which is also being webcasted. At the end of the presentation, we'll take questions from the audience and from participants on the call. Later today, we will also hold a conference call. Dassault Systèmes' results are prepared in accordance with IFRS. We adopted IFRS 15 in 2018, so all comparative information is presented under IFRS 15. In addition, we adopted the new IFRS 16 lease standard as of January 2019. Most of the financial figures on this conference call are presented on non-IFRS basis, with revenue growth rate in constant currency unless otherwise noted.
For understanding of the differences between the IFRS and non-IFRS, please see the reconciliation tables included in our press release. Some of the comments we'll make during today's presentation will contain forward-looking statements, which could differ materially from actual results. Please refer to our risk factors in our document, the Reference 2018. Let me now introduce Bernard Charlès. Bernard.
Good morning, thank you all for joining this event, and those who are really online. I'm delighted to share with you the perspective about Dassault Systèmes going forward, using the results of the 2019. 2019 will be a milestone in the history of Dassault Systèmes, as will be this day. In my mind, every five years, we have a special moment because every five years, I take the time to write a position paper that provides you with some maybe key information about the long-term perspective of Dassault Systèmes. That's what I'm going to talk to you about in this first part before I leave the floor to the newly named Pascal Daloz, Chief Operating Officer of Dassault Systèmes. We have achieved in 2019 our commitment to deliver on double the EPS from the plan that we set up originally in 2014. We have even overachieved that objective.
The plan was EUR 3.5 EPS, and we are at EUR 3.65, and EUR 3.55 if you remove the year-end effect of Medidata. We have also achieved something which we believe is a very important demonstration, the diversification, creating a landscape for the market of Dassault Systèmes that really provides less sensitivity to cyclical industries. With a significant, of course, results with the evolution, the platform phenomenon in the industry, which basically, the 3DEXPERIENCE platform is demonstrating something significant, not in 2019, but in the last five years, is that one platform can be the same for cloud or on-premise. One platform can serve companies doing shampoo bottles or doing satellites, and this collaborative innovation process can even be expanded to the life science and pharma sector. There is no other platform in the world that offers such kind of things, and this cannot be measured on one year.
It has to be measured on a longer term. To be more specific about the 2019 objectives, the revenue was up 13%. Pascal will give you much more detail about that. Stable margin at 32%, the EPS was up 17%. More importantly, this year, February 6th of 2020, there was a February 9th of 2012, which I will come back to, for some of you who were there. The one who were not there, it's good to understand the past to navigate the future of Dassault Systèmes. Preparing the future means: What is our ambition? What kind of markets do we want to serve? Why do we have strong reasons to believe that we are changing the rules of how innovation is happening in the world in so many industries, manufacturing industries, healthcare and life science, and infrastructure and construction.
Also, of course, the focus on innovation in those sectors. Pascal will give you some highlights about how we project longer term the positioning of the company in those three gigantic sector of the economy. Companies doing things, the products we use every day, companies changing the life science world, and companies creating mainstream innovation for our infrastructure. Of course, what I just mentioned starting this conference today is the choice that I did with Dominique Florack, my buddy for 35 years, to really make sure that we put the new generation in power. I don't plan to retire. I am a pupil of Serge Dassault and Charles Edelstenne. If you know them, you know that they have been working for a long time, up to 85 or even 90 for Mr. Dassault. That's not the point. Don't think one minute about that.
This is not what is happening. Empowering team to take the lead to create the next 20 years of Dassault Systèmes is important, and I will come back to that point, too. It takes a special kind of compass to understand the past and navigate the future. Let me share with you what we published on February 9th, 2012. We said three things. One, the platform phenomenon will apply to industries. It has been visible in retail, in banking. It's going to apply to industries. The proof point today, it does, and it's a unique positioning for Dassault Systèmes. We are the only platform that can create such kind of collaborative environment in so many industries at the same time.
The second thing we said the economy will move, and that's a paper that you can track, will move from a product-centric economy to an experience economy. The value will move from products to experience. It's happening. Look at operators on wheelies. Look at new mobility equipments. The proof point is there. The economy is moving from product-centric to experience-centric. Therefore, we said, by the way, the name of our platform will be 3DEXPERIENCE, because we are going to use this platform to imagine new solution for the world. The third thing that we said, which is a parti pris , which is our raison d'être. We didn't wait for our financial community to explain that raison d'être or purpose is important. We did it far before.
We said we put values on sustainable innovations, and we believe we can create an innovation process for our customers or that will help harmonize product, nature, and life. You can go back to what was published February 9th, 2012. This is it. I have published a paper today that not so many people understand. I don't really care, because we will read it in 2025 or 2030, and people will see that what we have written, I believe, will be happening, which is related to the emergence of new type of approach that connects things to life and put things on life in the context of the environment. That's why we published that little documents. On our website, we will have a more detailed white paper on it, which is explaining that. The purpose is well formulated.
It has never been more true than today, I think the society is expecting industries to change their direction in terms of how we invent the future for our children, the harmonization through innovation is essential. It's not going to come from constraints. It's going to come from new solutions. We have been recognized in the last years based on that effort. We put a lot of attention on what we call unprint and footprint. In some way, you have seen so many companies talking about CO2-neutral, buying back CO2 rights. That's good. The mission of Dassault Systèmes is far more powerful than that. It's about how we help others massively reduce their impact, their footprint. A study was done that illustrates that when we run our business at Dassault Systèmes, we produce, unfortunately, 1 ton of CO2.
Our contribution to the world is to reduce by the virtue of using our platforms with those clients' companies, reduce by 10,000 tons what they do. This is called Footprint Unprint. I believe the future is not in sustainability about absolute terms. It is about progression and speed of progression. The measure of Footprint Unprint is a significant value on relevant association to the purpose of the company. It was well-recognized by Corporate Knights. It was well-recognized by Fortune Future 50 and well-recognized with the MSCI ESG Index. Footprint, Unprint, deliver and leverage to improve. It is connected to what we said. The third message to you is also the following. The digitalization of the 21st century is not the digitalization of the industry of the 20th century. It is creating new category of solution for new categories of customers, providing a much more sustainable environment.
That's what we do at Dassault Systèmes. Here is a quick video illustrations. Oh, maybe I went too far. Those are brief illustrations of the number, incredible number of startups in the world which are using the 3DEXPERIENCE platform as a lab. We have thousands of those across the world. We are working with MIT on the innovation centers. We reach 5,000 innovation centers in the world, and we believe that those innovators are creating the economy of tomorrow when it comes to the products and the service we are using. There is more on our website. Why and how this could be possible? I'm often asked the question, "Are you doing things with AI? Are you doing big data?" Of course. The platform is managing gigantic data already for many sectors of the economy.
As you know, most of airplanes, seven out of 10 cars, are done with our software. Those are gigantic, precious data which we manage, we update, and we manage over a long-lasting life cycle, 40, 50, 60 years. The platform being information intelligence, collaborative environment, creating the power of 3D for imagination, and using simulation to connect that, is really changing this world. It has been proven in these 11 sectors. I will not come back to all those clients. They are really expanding the use of the platform across this. The reason why I wanted to start in on that point, at this point in time, today, is because we believe Oh, by the way, the implication of what I just said on what was published on February 9th, 2012, is that when we launched our new five-year plan, the results are there. Preparing the future.
We have a new ambition, moving from things to life. The Dassault Systèmes platforms almost is used for every thing that you touch in your daily life. Home products, mobility, whether it's ground mobility or air mobility, infrastructures. We will continue to expand our solutions in that domain. We are going to move to life. The Medidata acquisition is not a marginal expansion of our scope. It's a fundamental bet that we believe we can do the virtual twin experience of human. We have proved it on the heart, we have proved it on the bones, on skins for human. The Living Heart program has been adopted by the FDA, the regulator, as the great reference to help simulate all practices in surgery, for especially vascular and heart surgeries, which are, as you may know, with oncology, is the second reason of death in the world.
By the way, as a side note, the third reason is medical practice errors, which is not so well-known, but the reality of it. We believe that with the virtual world and simulation, we can change that. Preparing the future, having this vision, having the proof points today that the 3DEXPERIENCE platform can help us and help the world of life science, pharma, and practices in the healthcare system. Connect the power of Medidata for clinical trial with the power of Dassault Systèmes to do modeling and simulation, to create real-world evidence and connect them to the world of simulation, will change that industry, too. For that, we need, of course, to have something that illustrates this well, and let's quickly see this video.
How do we safeguard our most precious resource?
It gives you a very clear inspiration about our focus for the next 20 years. It's the result of what we have done in the past and what we want to do for the future. This can be summarized with this little illustration. We started 40 years ago by representing shapes. We added the complexity of things. We made the first virtual airplane on the planet. It has changed the entire industry because people were able to do that without physical prototyping. We said, we are going to add time to it. We are going to do the life cycle, we called it in our jargon, PLM, product lifecycle management. It's not a technical thing. It's a very profound conviction that an holistic approach to innovation will change everything.
We did the virtual twin experience of things, all things you touch in your daily life, because evaluating how they are going to be done, what they should provide to people, is more important before than after. We want to do the same for life science. Our future is to do the same for life. We are moving from things to life. Our ambition can be summarized today in terms of market, in terms of sizing, in three gigantic sector of the economy. The economy where people are doing things, no matter if it's a satellite, a plane, a car, or a ship, or something for med care. People who wants to transform the standard of care, the practices of health in life science, and of course, better understanding about how people live in cities and how infrastructure should evolve to make it more sustainable.
We have proof points. We are doing that for Singapore. We are doing other significant projects around the world with virtual cities because to apprehend, to understand how to make cities more people-centric, simulation and prediction is needed. Those are the three ambitions. It can be summarized with human industry experience and more to be talked about that. The new organization that I have decided to set up with the support of the board, of course, even though it's my challenge to do it well, is to ask Pascal to build the next generation team, the top talents of the world that will really be in charge of making sure that this does happen. This is the core operation Executive Committee led by Pascal and why this position has been created. They will be well supported with a multi-generation. He is younger than me.
While I still run maybe faster than him, but he skis faster than me. For the time being, I need to recover. That team is also unique from the fact that the chief of all R&D global strategy on execution for Dassault Systèmes is an extraordinary talented woman, Florence Hu. She is leading now the 69 labs around the globe. She did the platform revolution at Dassault Systèmes. Also, Florence Verzelen, leading all industries. This is the fourth generation. Laurence Barthès, managing all processes, talents across the world. We have a great parity, young talents, and I think that they are all very, they like each other. There is no competition in our company. The competition is outside. There is an incredible power for people on solidarity, on talent to work on this. This is not very frequent in so many companies.
That's why the purpose we have is a serious one. Of course, around them, Dominique and I are not planning to retire. Dominique is going to focus on the strategy for research on fundamental technology. We do a lot in deep learning on many of those things. I'm going to continue to make sure that the purpose of the company, why are we impacting the world? Why should we do it that way, continues to be done properly. Pascal has committed to be the chief of outcome. Thank you, Pascal. This is the team you see. Last remark I will do for this new talented team is that seasoned executives are going to be chairing those three strategic sectors of the economy I talked about. Bruno Latchague has been with us for 30 years. He knows almost all functions of the companies.
He is extremely well respected in all industry sectors, aerospace, automotive, with the top executives around the world. He's going to coach and chair that committee. Sylvain Laurent, who made it possible to do Virtual Singapore and many other projects, huge infrastructure project that we are doing, the Beijing Airport, for example, and many others. This is for infrastructure. Tarek Sherif, the founder of Medidata, who has developed this company from a startup to the world leader in clinical trial. They will be helping this bright, new, talented team make the choice that they have to do or make the decisions they have to do. That's what I wanted to share with you. It does not happen every quarter. It happens every five years, an update about the long-term horizon.
We have this ambition. We have the luxury to have a very stable shareholder structure where we know that we can take risk to make this ambition a reality. With that, Pascal, I leave you the floor to comment 2019 or more importantly, the ambition for 2020, and congratulations.
Thank you, Bernard. Good morning to all of you. Always a pleasure to be with you at that time of the world, because it's a way to step back a little bit and look at the performance. You notice that Bernard renamed my title, because I was convinced that I was Chief of Operations. Now I'm Chief of Outcome. Let's speak about the outcome. That's the purpose. Start with the year 2019 performance. If you look at the performance for 2019, we are in line with our objectives, plus 13% growth for the revenue as well as the software. With this shift in term of business model, because the vast majority of the growth is coming from the recurrent parts and less from the license. It already happened in Q3, and you will see that it continued in Q4.
If you look at the organic growth for the recurrent part for the full year, we are at 8%, which is 200 basis points higher compared to 2018. Clearly it's a significant improvement. 32% EBIT margin, which is a good achievement because we did some acquisitions, large ones. Clearly we have been able to handle and to contain the dilutions coming from the acquisitions. Finally, we are landing at EUR 3.55 EPS, which is ahead of our guidance and the consensus, growing at 70%. Q4. Q4 is almost in line with the full year, with two effects, I will say. The software grows at 17%, flat in terms of license. You remember when I gave the guidance for Q4, I already stated that we were looking for between being flat and 5%.
The 5% was assuming that we would be able to recover a little bit the Q3. We had the pipelines. We did. I want you to remember that last year, Q4, year 2018, was a very good quarter, plus 13% for the new license. The base is really having an impact on this. Being flat means that we did well, in fact. 27% growth on the recurrent parts. Obviously, you have the Medidata as part of it, and I will go much more details on the organic growth afterwards. EPS EUR 1.2. Zooming on the 3DEXPERIENCE platform. The 3DEXPERIENCE platform, as Bernard stated, in the year 2012, he made the announcement. If you look at now, we are close to 30% of the total software revenue coming from 3DEXPERIENCE platform. Between 2012 and 2019, a third of our revenue.
Growing at 22% this year, it's relatively well-aligned with our objectives. If you look at the license, this represent close to half. In fact, 45% of the new license are coming from 3DEXPERIENCE platform. It's 500 basis points more than compared to 2018. We are right on track with our objectives on this. Speaking about the 3DEXPERIENCE platform adoptions, I'm proud to say that EDF has extended the adoption of the 3DEXPERIENCE platform. You remember we signed a partnership with them in year 2018, and it was a strategic framework, and we are progressively expanding the scope. Here we are talking about the usage of the 3DEXPERIENCE platform to run the plan, because they want to build a single source of truth to get access to all the information on plan.
What is at stake, and you have the numbers written here, they want to reduce by 30% the operational cost. That's significant. That's part of this project. Without the platform, there is a miss in the way to make it happen. The side note also, they are using the 3DEXPERIENCE platform as a way to ensure the certification process, which is very critical in this industry, as you know. Speaking about new industries. In 2019, we had double-digit growth in some of them. In overall, all the consumer-oriented industries, home and lifestyles, consumer packaged goods, and to a certain extent, life sciences. We see a high double-digit growth in this space. By the way, we see the momentum to continue in 2020. We also had a very good performance in aerospace and defense, with high double-digit also.
This is counterbalancing some of the softness we have seen in the auto sectors. You remember we started the year growing at close to 10%, and we are landing at mid-single- digit. The softness is coming from the supply chains more than the OEM by itself. It's not new. I already commented in Q3, but we see these trends continuing. By the way, in the guidance, I took this into account. Industrial equipment is also growing at mid-single- digits, but with almost the opposite trend. You remember we started very slowly the year, and SOLIDWORKS is a good indicator of that. We have seen an acceleration of the growth, especially the last quarter. You will see SOLIDWORKS is growing at 9%, which is a good sign. In a nutshell, the diversification industry represents more than a third of the total revenue of Dassault Systèmes right now.
You will see that if you take the contribution of Medidata for the coming years, what we call the diversification industry will represent half of the revenue. Clearly, a third of the revenue is coming from the platform, and more than a third of the revenue is coming from the diversified industry, and it was the bet in year 2012. A good example of this adoption of the 3DEXPERIENCE platform outside of the traditional core industries is the life science. We continue to expand our coverage in the space. Here, I'm pleased to announce B. Braun. B. Braun, it's clearly a world leader in medical devices and pharmaceutical products. The interesting things here, there are two. Point number 1, we won this deal with a partner.
I remember you asking me questions about the ability of our partner to start to deploy and to sell massively the 3DEXPERIENCE platform to, I would say, mid-size to large companies. Here you have the proof. TECHNIA is one of our partners in Germany and the Nordics. You see it's a significant deployment because we are talking about equipping 13,000 users. We are capable to equip a number of users, not only in the Boeing of the world or Toyota of the world. You remember Boeing, we are talking about 70,000 people being equipped. Toyota is 40,000. Here we are talking about 13,000. Clearly, it's proof that this platform phenomenon is touching all the industry we are targeting right now.
The core of what they do, they're going to use the License to Cure solutions in order to manage all the regulatory and compliance things, which is very critical in these industries. If I zoom on the different regions of the world, Americas is growing very well, 24% for the full year, 44% for the quarter. From a pure organic standpoint, the growth is exceeding in fact 10% for the full year, with a very strong subscriptions contributions. The subscription is growing at 15% in Americas. It's a proof that the market is shifting and the adoption of the subscription is taking off much more rapidly in the U.S. compared to the rest of the world. We obviously have a good contribution of the acquisitions, Medidata for sure for two months, as well as Centric and IQMS.
Europe, 9% growth for the full year, 7% for the quarter. You have a contrasted view in Europe. The north and the south are growing double digits, and we are flat in Germany. Especially because we are impacted by the supply chain in the auto sectors. This is where the slowing down or the softness is coming from. Asia, + 7% for the full year, 6% for the quarter. I did a specific zoom for China because I know it's one of your questions. China is growing at 16% for the full year and 11% for the quarter. Clearly, you have the proof that we are seeing some softness, again, in the auto sectors, but the rest of the economy is relatively sustainable for us, and here you have the proof. I will come back for the guidance specifically for the China situations.
Korea is also growing relatively better for H2. We started by growing mid-figure digit, and we are back to a good double-digit growth in Q4. If I look at from the revenue performance by product lines, by brands, 6% for CATIA. Remember, last year it was 4%, so it's 2-point growth compared to last year. 1% for the quarter, so clearly we had a good start, and we are softening a little bit on the second half, and you have the reasons. It's definitely due to the automotive sector, which is a large sector for CATIA in Germany and Japan. We are seeing a very good traction of CATIA specifically in the U.S. and in the aerospace. One thing I want to share with you, the new generation of CATIA, called CATIA 3DEXPERIENCE, is growing relatively well, +30% for the full year.
Clearly, again, the dynamic for the next generation of CATIA is taking off, and we are very pleased with this. ENOVIA, + 5% for the full year, - 7% for the quarter. On this, be careful because we have a very strong base compared to 2018. I put the numbers. If you remember in Q4 of year 2018, the license was growing up to 48%. Sorry, to 84%, not 48%. 37% for the full year. The base is really playing there. A good point for you to prove that the competitiveness of ENOVIA is still very good is the winning rates. I computed the statistic for the full year, and we are winning in 75% of the cases against SAP, 85% of the cases against PTC, and 70% of the cases against Siemens. Clearly, we are gaining market share with ENOVIA significantly.
SOLIDWORKS, I spoke about it, 6% for the full year, 9% for the quarter. Keep in mind, Q4 year 2018, we were growing at 12%. It's a good performance, knowing that we were growing at 4%-5% in H1. We see a good momentum in Asia and Europe at large. The line other software is growing at 28%, to 48% for the quarter. High double-digit growth for DELMIA as well as SIMULIA. BIOVIA is growing double digit also. We have the contribution of Medidata for two months. You remember I gave the numbers to you, I told you that it's EUR 103 million, which was in the guidance. We deliver EUR 123 million, EUR 20 million more. It's coming from two factors. We closed the deal, in fact, we get the approval from the authorities three days before we were expecting.
This is explaining EUR 10 million in the EUR 20 million. They overachieve by EUR 10 million a quarter. Clearly we are right on track with Medidata, and we are very pleased with the integration process going on. Revenue growth, so 13% for the full year, as I was explaining to you, and the organic growth is 7% for the full year, + 3% for Q4. The organic software growth is relatively aligned because it's 7% for the full year and 3% for the Q4. If I split the software revenue between the license and the subscriptions, so the organic growth for the license is up + 3% in year 2019 and flat in Q4. I already commented it. The organic recurrent revenue + 8% for the full year, 200 basis points compared to year 2018. It's 300 basis points compared to 2017.
Clearly, you see the improvements going on. 5% in Q4. This is probably the numbers I should spend time to explain, because I'm gonna have a lot of questions related to that. It seems to you that we are slowing down, that's not at all the case. Let me explain to you why. In 2018, we were using the IAS 18 standards, accounting standards, meaning the subscriptions was recognized on the pro rata basis, on a temporary basis, if you want. With the new IFRS 15, you remember I did the explanations a year ago. We have to recognize 85% of the subscription within the quarter at the time of the renewal. Meaning that in year 2019, we put a lot of disciplines to renew the subscription on time. What is the difference with 2018?
2018, we were using Q4 as a way to do the catch-up for all the customers being late in their renewals. Here you have a base effect. That's the reason why the numbers, which is 5%, is very consistent with what we are seeing for the overall year, which is really an improvement of the recurrent part. There is no trick behind. This is only the fact that with the different standards, you manage your operation in a different way, and this is the result. You will see for the guidance for next year, I'm fully in line with this. Services revenue, 9% organic growth for the full year, - 1% for Q4. Again, I just want you to keep in mind a few things.
Last year, we were growing at 26% organically because we did the catch-up for Boeing in order to be ready to do the deployment in 2019. We had to accelerate in Q4 last year in order to be ready. You have a base. By the way, just because I'm speaking about Boeing, just a few updates on this, because it's probably a question I'm going to have. Boeing, the software revenue is secure despite the difficulties they face. Okay. The commitments to continue the rollout of our projects is under control. The only thing we are doing, we are slightly adjusting the services bill because there is no need to accelerate the deployments given the situation they face. Second thing, is it a risk? Do we have a risk with their supply chains? I'm sure you have seen the announcement they did last week.
They are committed to invest massively to sustain their supply chain. There is a big reason for that. In the aerospace sectors, if you stop, the time for you to create, to rebuild the ramp-up, it's years. That's the reason why despite the difficulties they are facing right now, they continue to maintain their supply chain and operations to make it happen. You know that for the next decade, the number of airplanes has to triple. The backlog exists. They are just slightly postponing some of the production cadence, but the supply chains stay intact. On the operating margin, 32% plus 0.1 points. Here you have the bridges, 100 basis points coming from the organic improvements, dilutions from the acquisition 120 basis points, and a positive effect of the currency.
Clearly, as I was stating to you, we have been able to handle the dilutions coming from the acquisition, and that was the plan anyway. EPS +13% for the quarter, 17% for the full year, EUR 3.65. The contribution of Medidata is EUR 0.06. The point is, without Medidata, we would have reached anyway the target of EUR 3.50. That's the net of this. We have a positive tax effect for the EPS in this quarter, it's coming from the new French patent and software box regime. As you may know, there is some tax advantages for the IP, the software now is part of this new regime. You have the contribution, it's a 1.8 decrease to the tax rate. The cash flow is growing very nicely. We are reaching close to EUR 1.2 billion, a little bit less, growing to 32%.
Which is unusual, because usually, I'm very proud to say that we are ending with a cash positive situations. Last year, it was EUR 1.8 billion. Now we have a debt situations of - EUR 2,656 million. The key ratio is the debt ratio, and I put the computation here. We are at 2.5, which is well in line with our plans. At the time of the acquisition of Medidata, we were at 2.7. Again, we computed with Valérie this ratio, taking into account the IFRS 16 rules, which consists to recognize the future lease as a debt. We are very close to the way the Standard & Poor's rating companies are calculating this ratio. Okay.
I just want to remind that our goal is to be at 1x leverage over the cycle of the investment, which basically means in 2-3 years from now. Cash flow, 32%, really driven by the activities. You see for the trade account receivable, the balance up 4%. You have some softness in the DSO, and it's really coming from the acquisitions, specifically Medidata. Medidata contribute to seven days. If you exclude the Medidata and to a certain extent IQMS, our DSO is pretty stable. On the liability, the balance up 8% at the constant perimeter, which is consistent with the organic growth. On the accrued compensations, here we have one exceptional since, which is the payment of the tax related to the pre-acquisition stock options.
This is the reason why you have this -EUR 36 million, and Medidata tax is contributing to EUR 20 million, EUR 22 million in fact, to this number. The increase or decrease in the income tax payments, again, this is coming from the lower taxable income in 2018 and the lower tax down payments. This is the reason why you have this explanation. We put another lines to be fully transparent with you, because you will be able to compute it. It's the payment of the fees related to the insurance of the bonds and the term loans. Here you have an impact of EUR 37 million. With this, you have the complete details on the cash flow. Bernard stated the new ambitions. You have seen it. Okay.
On the same times, we did the acquisition of Medidata, so we came to the conclusion that the revenue reporting should evolve in order to take this into account. This is what I will explain in these sections. Point number 1, if you look at the diversification industry, what we used to call diversification industry, if I do the like-for-like, assuming that Medidata would have been with us since January the first year 2019, this is representing half of the Dassault Systèmes revenue. Half of our revenue is coming from what we call diversified industries. We came to the conclusion that it's not anymore the way to report to you guys because it's a significant part of the revenue. It's much more accurate to start to slice, to split those diversified industry in the three sectors of the economy Bernard was mentioning.
We are adding to the core industry, the manufacturing industry, the high-tech, the home and lifestyles, and the consumer packaged goods things. We are obviously isolating the life sciences sector because this is becoming the second-largest industry for us. We are bundling all the industry related to infrastructures and cities, namely, construction, city and territories, as well as materials and energy, and as well as business services. With this, you have the split of the total revenue of Dassault Systèmes. Still 70% is coming from the manufacturing industry, where we have built our leadership, 20% in the life sciences, where we have the critical mass and we will continue to expand, and 10% in infrastructures and cities, where we have reasons to believe we have certain footprint in certain industry, but we have to expand and capitalize on what we did.
The goal ultimately on the long run, is to have those sectors be the equivalent for Dassault Systèmes. This is what it means. This is the reason why we want to report along this way, because it's a way for us to prove that we walk the talk. Software revenue breakdowns. Same story. In fact, if you look at the other lines, the other software revenue, in a like-for- like, this now represents 45% of the total software. We took the decision to split this line accordingly. Why we decided to create some categories, it's because, in this line, you have all the acquisitions we did for the last decade. All the acquisitions are serving different purpose, different leaderships. This is the reason why we have built those three core domains, three core categories for the software.
The first one, which is really related to industrial innovations. The same way you have industrial automations, we believe there is a category for industrial innovations. It's what you put usually behind PLM. The life science software revenue at large, because now it's becoming core for us. Again, progressively, we will expand the life science software to the healthcare over the time. Mainstream innovations. We are separating mainstream innovation from the industrial innovations because we are convinced, with the platform, we can serve business, mid-size business, or sometimes business which are not really industrialized, if you want. With the platform, it's a different game, and this is what is behind. The way to split it, so I will continue to report the CATIA and ENOVIA numbers, but I will glue another line in this category, gluing SIMULIA, DELMIA, GEOVIA, NETVIBES, EXALEAD, and 3DEXCITE.
I will give you the combination of Medidata and BIOVIA for the life science, so you will be able to track our footprint expansions. Mainstream, it's the combination of SOLIDWORKS, Centric PLM, 3DVIA, and what we call behind the 3DEXPERIENCE Works family, specifically, for example, IQMS, the acquisition we did. With this, I think we have the proper setup for at least the next decade. As you may know, we are not changing the revenue reporting often. Bernard was saying every five years, he's doing a press release to announce the new horizons. The last time we changed it was almost 15 years ago. I think we are not tricking you guys. We just want you to be able to follow the progress we are making. Financial objective for 2020. Here are my assumptions.
Total revenue grows up to 21%-23%, excluding currency effects. Relatively consistent for the software, 22%-23%. Here is the way I did the split between license and the recurring parts. Between 5%-10% for the license. Keep in mind that the 5%-10%, it's an organic growth because like-for- like, all the acquisitions we did are contributing the full year, and it's a pure organic growth. The recurrent revenue up by 28%. Just for you to make your minds, I did this exercise to give you the like-for-like. Medidata is obviously contributing significantly in these lines. If you do the like-for-like, we are at 9.5%.
If you do the reverse engineering of the numbers, I will simplify your life, just to calculate the organic growth of the core without Medidata for the recurrent part, you will find that it 8%. I took some assumptions for Medidata. The Medidata total revenue growth is 13%, including the currency effect. Very consistent with what I shared with you at the time of the capital market day in November, because I gave the range between 13%-15%. On the operating margin, I'm also expecting Medidata to improve significantly the EBIT margin by 200 basis points to reach 20% EBIT margin. On an organic standpoint, for the organic margin, I'm still expecting to improve by 80-130 basis points in order to contain, again, the dilutions of the acquisitions. Tax rate, a decrease to 26% compared to 26.5% in year 2019.
For the exchange rate, comparative Euro-Dollar at 1.15 and 125 for the Japanese yen. Here are the numbers. Revenue expected for 2020 between EUR 4.84 billion-EUR 4.89 billion. An operating margin of between 31%-31.5%. Remember, we took the commitment that with the Medidata acquisition, we will not go below 30%. In fact, it's not below 31%. I think it's a good achievement. An EPS between EUR 4.15-EUR 4.20, growing at 14%-15%, which is relatively well-aligned with the consensus. For Q1 revenue, it's almost the same in term of trend, except one thing. I took some cautiousness on the license, there are a few reasons for that. The first one is because the pipeline is backloaded, which is usually the case for us.
It's also because, in China, we don't know yet what going to be the impact of the health situations. We know that we're going to have some impact, and especially because, the retailers, they cannot travel inside the country, so they cannot visit anymore their customers, and we have no clue how long it takes. That's the reason why I took some cautiousness. It's hard to compute the risks. I do not consider that all the risk is factored in these numbers, but I took a piece of it. Okay, for the EPS, it's EUR 0.90-EUR 0.95, growing between 3%-9%. That's it for today. The takeaway, just to summarize, is we believe that 2019, we deliver on commitments. We think that 2019 we exceed the five-year plan.
We believe with the acquisition of Medidata and the strategy we have developed over the last decades with 3DEXPERIENCE and the diversified industries, the new industry, we are right on plan to achieve the EUR 6 EPS for the next plan, which is the one ending in 2023. For that, I'm going to give more details to you at the time of the Capital Market Day in June. Please save the dates. It will be in Paris, in Vélizy. We'll be pleased to welcome you at that time. That's it for today. Bernard and I will be happy to take your questions now. We'll start from questions from the room. Don't be shy.
Hello. Yes. May I have explanation about your competitors in manufacturing systems? Is GE, which is in difficulties now, less a competitor for now or not?
Pascal, you want to take it, or?
I need to learn how to lead the questions, you know. Still.
Manufacturing, it's a wide scope. Okay? If I read your question related to the way things are done, basically plants, on the plant automation, we see several trends. First of all, reduction of size of plants, not because of capacity, because of modularity and because of new ways to produce things in a more sustainable way. In this area, we are having very strong successes, with a brand that you may remember in our brand portfolio called DELMIA. In three areas, what we call manufacturing execution system, MES. It's a dragon of the sector, on manufacturing operation, but also in supply logistic. The connection between the flow between the different sites to really produce what you want to produce. We are very with what is called DELMIA QUINTIQ.
I think this activity. We want to be a world leader there. We are making progress, significant progress in the past years. It's well-known, for example, that one of the best manufacturer in the world still is Toyota, in terms of efficiency, is using our solutions in a big way from that standpoint. I think we are gaining market share, and we will to continue to focus there. We'll take now a question from the conference call. Operator, would you please give the floor to Stacy Pollard from JP Morgan? Stacy?
Stacy Pollard, your line is now open.
Hi. Thank you very much. You have pretty ambitious plans in life sciences. Can you say what portion of solutions you think you already have today, and what other product areas you might need to develop or acquire over time? Really thinking mid to long-term, not necessarily short-term given the kind of existing ratio. Just a quick second follow-up after.
We started well with BIOVIA. Stacy, on the R side, research side. The life science world is a document-based world. They use digital document. Basically, what you know under PDFs or documents, Office documents. They are not doing modeling and simulation. They are not able to do what the manufacturing is doing yet. That's what we want to do. We started BIOVIA. It's a modeling of cells, human cells. It's the modeling of chemical, and it's the best platform for that, the modeling of organic and non-organic. It's the world's best platform. It's now part of 3DEXPERIENCE platform. Adding Medidata, it's about adding what we call a real-world evidence in clinical trial, big data. We connect the big data to the models, to the simulation. That's why we are doing something unique.
Pascal, you might want to comment on that, but that connection with the platform is going to make the difference.
Yeah, definitively. I was looking, by the way, the competitive wins Medidata did last year. Medidata, they continue to win against Oracle, against Veeva, against IBM, against many players in this space. The growth is also driven by all the new modules they have developed recently. You remember they have their core product called Rave, and on top of Rave, you have a collection of new applications, and 60% of the growth is coming from there. Also the revenue coming from the exploitation of the massive set of data they have capitalized over the time is starting to take off. One of the largest deals they signed in Q4 is related to this.
Now, to complement what Bernard said, because the question was related, do we have this in the solutions? There is one axis we want to continue to push from a strategic standpoint. Here we are talking about serving the industry around the life science, specifically the pharma company and the medical devices company. We also want to touch progressively the practitioner. In the clinical trial, we are already doing it, because the practitioners, the doctors are part of the process. We are convinced that more and more the science we have developed could help the practitioner, the way they do the diagnostics, the way they prepare the surgery, for example. There are many usages we see appearing, and this is a domain where we want to expand and to be positioned for the future.
Very interesting. The second quick follow-up was, there are a number of large deals that you've announced. Can you give us any sense of a pipeline for further potential large deals? Perhaps within the deals that you've already mentioned, of course, EDF is obviously progressing well. Are there others with such upscaling potential?
For the pipeline, I would say, when I look at the pipelines, we have more deals exceeding the millions, but we have probably less mega deals. Why so? In this given time of the year, with the uncertainty of the economy, the mega deals require some things. It requires from our customers to implement a big change management programs. Right now we see many companies focusing much more on the short-term decisions and a little bit less on the long-term decisions. The net of this does not mean the pipe is dry. Not at all. We have a good pipe, and as I was telling you, especially on the second half of the year. We do not have more, I would say, sizable, big strategic deals compared to what we used to have.
We have those deals in the pipe, as I was telling you, EDF is a good case. We continue to fulfill, to continue to penetrate those large accounts with 3DEXPERIENCE platform. This is the driving force for 2020. One thing maybe I could add, because this question's probably related to how secure is the recurrent part of the revenue. You have our track record for the core, I think you are able to make your minds. Maybe the unknown things for you is Medidata. In the guidance I gave to you, I have a coverage of 93% of the revenue with the backlogs they have for 2020. With this, I think you will be able to assess the solidity of the recurrent part of the revenue.
Thanks. That's good. Thank you.
If we have a question from the room, we'll take another question from the call. Jola, can you connect Julian Serafini, please?
Line is now open.
Hi. Thank you. I want to touch on the pipeline a little bit more. I think you've said pretty clearly that you have confidence in this pipeline coming through in the backend loaded in the second half of the year. Are these specific verticals maybe that are different than automotive, that you have confidence that these will close? Because you have been talking at the same time about some economic uncertainty. It'd be interesting just to gather a little bit what gives you confidence that you can close these deals and they will come through later this year.
On the auto sectors, the softness is coming from the supply chain, not the OEM. We continue to have a good traction for the OEM. For a single reason, it's because the regulation is changing and they have to introduce new car, electrical car, autonomous car, and they have to comply with this new constraint. We have a lot of programs going on. It's point number 1. Point number 2, the vast majority of the auto is still using CATIA V5. To develop this new car, the new vehicles, you need to jump to the 3DEXPERIENCE, because there is no way you can develop a cyber system with CATIA V5. You need 3DEXPERIENCE CATIA to make it happen.
That's the reason why when we build the guidance and we look at the pipelines, I'm still relatively confident for the large OEM and for the supply chain. I took almost what we observe for the second half of last year, which is, softness, especially in Germany, Japan, and to a certain extent, India. That's the way we did it.
Thank you. That's helpful. If I can ask just one follow-on too. You mentioned, factoring in China a little bit in your guidance for 1Q and some uncertainty around that. I guess, can you share, have you already seen any impacts from what's going on in China today? Is there anything that you can share around, how big is China as a percent of your revenue? Maybe to help us get some clarity on maybe how big the impact could be.
What we have seen, on the second half of the year in China, again, is a softness for the auto sectors. We have not seen any specific sign related to the health issues we are facing. You remember Q1 is an important quarter for China because this is their new year, and usually it's the largest quarter for China. China represents a little bit less than 10% of the revenue for the ecosystem. Given the fact that it's the largest quarter, given the fact that it's representing 10% of the revenue, and the vast majority of the revenue is coming from the indirect channels, this is a reason why, in the guidance, I took some cautiousness. Again, it's hard for me at this stage to factor completely the risk, because it's too early in the quarter to know it.
I will have probably a better view, I would say, beginning of March or mid-March.
Yeah, that makes sense. Thank you.
We'll take another question from the call. Operator?
Your next question comes from the line of Michael Briest from UBS. Please ask your question.
Good morning. Thank you for letting me on. Just a question around life sciences. There's an interesting disclosure in page 61 of the slides. I think you're helping us build the bridge from the new guidance for 2020. Just looking at life sciences, I think in Q3 2019, it's EUR 33 million, and EUR 3 million of that comes from ENOVIA. If I go back to your previous acquisition, Accelrys, I think the last quarter they reported in Q3 2013 was $30 million of product sales, so license maintenance and subscription. It doesn't look like there's been a lot of growth over the last six years. Can you sort of square what's happened with Accelrys since you bought it and where the growth has come or not come in life sciences? Thanks.
Michael, you missed something very important. In the Accelrys product line, you had a product called QUMAS. QUMAS was related to compliance and quality management. I've been very clear that the revenue is now part of ENOVIA. When you do the math, you forget to take into account that we are just displacing the revenue from Accelrys to ENOVIA, specifically for QUMAS. If you do the computations, you will see. When we did the acquisition of Accelrys, the first two year was a little bit tough. Since then, now we see for the last at least two years, it was true in 2018, but also in 2019, we see the momentum back. I've been very explicit. We are growing at double-digit. I would not draw the conclusion you are drawing, Michael.
I think QUMAS only had $20 million of sales when Accelrys bought it. Just on SOLIDWORKS, that was a very good performance in Q4 and almost seems counterintuitive given the macro environment, and you've indicated in the past that's a more macro-sensitive business. How would you see growth for SOLIDWORKS this year? Are you seeing much of a switch to subscription or SaaS-based delivery for that product? Thank you.
I answer the first part, and you take the subscription part, Bernard? If I look at the 2020 years, again, we are in the range of what I communicated from a new license standpoint, which is a growth between 5%-10%. This is what I'm expecting. The reason is, as I was stating to you, we see a good momentum in Europe, we see a good momentum in Asia, China is contributing significantly to the growth for Asia. I do not want to replicate the performance we have seen in Q4 for the full year. I'm taking some cautiousness on this. As you noticed in Pascal's presentation, we have now a section of the market which is called mainstream.
Next week, we have what we call 3DEXPERIENCE World, which is really replacing SOLIDWORKS World, which is the big event for SOLIDWORKS, because our users are discovering the value of a platform to extend our business as does the partner. The portfolio is evolving from desktop to platform-based solution, including cloud. Why do I say that? Because we are not going to be too much brutal with the market, but there is gigantic piracy on SOLIDWORKS. Please translate piracy, free software, which should be paid. There is a lot of piracy. There is a second phenomenon, which is lack of tendency to renew subscription for all installation. To be more specific, you have a large installation, and you just pay for a few users for the subscription, and then you do what I would call piracy for all the rest of the users.
We are going to fix that, and without being brutal to the market, we are going to progressively make this mandatory. That's a significant factor to manage carefully because they love us, we love them, but it has to become normalized, and it will. The last point is it's also necessary because when you have a cloud platform, by definition, we know who is online, so we know who should pay.
Thank you.
We'll take one question from the room. Laurent?
Thank you. It's Laurent from Kepler Cheuvreux . In fact, I have two points. The first is on your guidance on Medidata, 13% growth and the visibility you already have today. I was wondering if the EUR 10 million bids you had over two months, which is quite significant, compared to the size of Medidata, is it a one-off or is it something that is more structural? In other words, is there room to do much better than 13% growth for the year? My second question is on your infrastructure and the cities. Is it possible to have a kind of a trend you've enjoyed in the last maybe two or three years? Thank you.
Okay, if I take the first questions. The EUR 10 million extra, not all is coming from the software. You have a piece coming from the services as well. Keep this in mind, because when I'm building the guidance, the most important for me is obviously the software revenue.
Okay.
That's for the Q4. For the full year, yeah, the range is between 13% and 15%. I didn't change my mind. I need to guide the markets, I have to take one assumption. I took the low part of the guidance. That's the way I'm doing it.
Which is a good idea.
I think.
Related to the city, I think there is a lot. First of all, we use the word in city, but there are a lot of customers doing roads on bridges, or what we call infrastructure. What we call now this new sector of the economy called infrastructure, which by the way, as a side note, it's almost 50% of the world GDP. As a side note. Very behind in terms of digitalization. We concentrate on city, on infrastructure. We have a good project, but I must admit, for the time being, they are kind of one of a kind. We mentioned that already several times. It's a one of a kind kind of projects. We are not at a stage where we can replicate systematically. I believe we can reach that stage in 2020 probably, provided the focus of the team now on that sector.
That still need to be the key point to really create a sustainable double-digit growth in that sector with a strong visibility. We'll take one other question from the room, and then we'll be back to the call.
Yes. Eric Blain, Finance Connect. I just wonder, are you going to give the margin in your new presentation by sector? If yes or if not, can you give us an idea of the normative operating margin of your new sector?
I'm not planning to do it for one single reason, is because the vast majority of the cost is in research and development, and half of the cost in the investment in research and development is related to the platform, and the platform is the same for all the different sectors. It will be not relevant to give you operating margin per sector.
You give an idea of Medidata operating margin for 2020?
Yeah. I'm doing it because as part of the investment case, I've been very explicit about the fact that not only I want to double the revenue of Medidata over the next five years, but I want to add 10 points operating margins of Medidata over the same time periods. That's the reason why I'm very explicit and transparent, just because it's a way for you to check if we are delivering the commitment.
This increase in margin is mainly due to increase in sales, or?
It's both. Half of the organic improvement is coming from the revenue growth, and the other half is coming from synergies on the cost sides, specifically on the platform, on the cloud, on the research and development as well, and some G&A cost.
Okay, we're back to the conference call. Operator, could you give the floor to.
Your next question comes from the line of Adam Wood from Morgan Stanley. Please ask your question.
Hi, thanks very much for taking the question. I've got two things. Just first of all, on the market share, you talked a little bit about the ENOVIA evolution. I wonder if you could just broaden that out a little bit. When we look at some of the other companies in the PLM space, such as PTC or Cadence, that seem to be growing at a faster rate
Could you maybe just talk about how much of that is because of different end market exposures, how much of it is maybe the kind of shift to subscription, and just talk a little bit around what you see in the market in terms of deal wins around the rest of the products rather than just ENOVIA. Secondly, you mentioned EDF on the run side of things. Could you just talk a little bit, you've obviously been very successful on the MES side in discrete manufacturing. What are the plans on the process side? Would you look to become more competitive over time with the AspenTech and the ABB and Schneider Electric of the world in that run piece? Thank you.
Just maybe a comment, Pascal, and you provide the substance.
Okay.
I think one remark I will provide for this question is, Pascal mentioned the very strong winning rate in winning market share decision. When we win, let's take for example, Ericsson, very important company for Europe 5G. They are adopting in a gigantic way the platform. They are transforming the complexity of a extraordinary number of digital environment to one consistent platform. When we have these decisions, we don't get the revenue upfront.
Yep.
It's very progressive. We win the case. We know it's not going to be a competitor. After, quarter-a fter- quarter, we will orchestrate the deployment based on the transformation of the company. I have many examples of that in the high tech, but in almost all sectors. It's very different when we win new customers in new sectors from evolving with the Platform on existing customer base. It's a different dynamic. That's the explanation for the perceived on the reality of the gap between the winning rate of between 65%-85% of the case are won case, on the instant revenue reported. Because this is building up a high visibility pipeline going forward. That's for the context, especially for the Platform-based decisions.
Adam, it's a little bit early, because we need to have all the competitors reporting before to compute the market share. As far as I understand, we are on the same trends compared to the last few years, which basically means we are gaining between 0.5 point-1 point market share in 2019 against the traditional competitors I was just mentioning before. In the life science, because I do not want to mix the two, just for clarity, the combination of the Dassault Systèmes and Medidata, we are at 9% market share. Not at the same order of magnitudes compared to what we have achieved in the PLM domains. Here, if I, again, based on my expectations, we will at least gain 0.5 point on this. The dynamic is good.
The second question was related to the manufacturing and where we see the growth coming from, I guess, Adam?
Exactly. Well, it was also around where are you on the process side? There's obviously MES for discrete, there's also the run of process factories. Is that an area It sounded like with EDF, there's a shift, EDF is not completely a process industry, there's a shift in that direction. Is that something we should look to in the future from you on the manufacturing side, will you stick very much to discrete when you talk about the runner factories?
Well, Adam, I know you know, but I think for everyone, I want to take your question to, you know, now we are building two categories of industry solutions for manufacturing. With the acquisition of IQMS, which is now called DELMIAWorks, please connect to SOLIDWORKS. We are creating a mainstream offer for small mid-size companies. It's extremely well-received by the market. It has been on a very slow start, unfortunately, in 2019, because we need to set up the distribution properly around the globe, for what is called DELMIAWorks. The point is, we are building mainstream for small mid-size companies, not only for design, but for simulation and for manufacturing. We have, allow me to say, high-end offer, which are used by large companies, which is based on the DELMIA manufacturing solutions, which are really doing well. That's the context.
The mainstream has barely not started yet. It's a to-be business. I believe this 2020 will be a good test to see how we can accelerate that growth. It is on a slow start right now, but we still are convinced that it's the right thing to do because there are massive needs in that segment of the sector, of the market.
To complement what Bernard is saying, keep in mind that this mainstream market for the manufacturing, it's a EUR 5 billion market, underserved. The bet is still the same. It's one single product.
Using an indirect way to reach the massive number of company we want to equip. By the way, half of them are using SOLIDWORKS today. This is the leverage we want to have by touching, to equip this market. Coming back to your question related to the process industries, because you are right. Right now our focus is mainly on the discrete manufacturing industries, not too much on the process. Here we want to be game changer. We believe all the company you just mentioned, they are addressing the automation of the manufacturing. They do not do what we do in the discrete manufacturing called operation management, manufacturing operation management. Which consists to link the operations with the design, with the decommissioning. It's really managing the entire life cycles, managing the operation in the context of the life cycle. This does not exist in this industry.
That's the reason why, if you remember, we want Chevron and, they are using the platform despite the fact that we are not massive players in the oil and gas. Why they are using the platform, because they want to link the upstream to the downstream activity accordingly. Because there is the only way for them to manage efficiently their operations is by linking the two. That's the way we want to penetrate this process industry rather than to try to mimic what the company being well-established are doing right now.
Thank you very much.
Thank you, Adam.
We take one last question from the call. Operator.
Last question comes from the line of Nicolas David from Oddo Securities.
Yes. Hi, thank you for taking my question. Actually, I have two. The first is going back on the aeronautics supply chain in the U.S. You mentioned that you are not very worried, but I remember that you expected some catch-up from contracts that you didn't sign in Q3. Did that happen in Q4 or not? If not, is it linked to the issue of Boeing and what do you expect for 2020 for the supply chain? My second question is regarding your operating margin guidance. Do you expect a sharp improvement on operating some point in 2020, which is maybe more optimistic than the midterm vision you gave us two years ago. What's changing there, and where do you find some additional leverage? Thank you.
Okay. To answer to your first questions, which is related to.
Right
the supply chain, the Boeing supply chain in the U.S. specifically. Yes, you are right. In Q3, we had some deals in the aerospace, but those one has not been impacted by these situations going on. To be more precise, because I was very clear that we had EUR 20 million at stake, deal shifting from Q3 to Q4. We signed half of them, so still missing EUR 10 million, but the EUR 10 million are not in aerospace. They are in the other industries such as oil and gas specifically. Okay. In Europe it's probably a little bit different. Okay. Now the second question is related to the leverage on the operating margin. Yeah. There is one thing you are missing, Nicolas, which is the growth is coming from the recurrent part of the revenue.
As you may know, the margin for this at this line is much higher compared to the new license because the cost of sales is not the same. That's the reason why you could perceive me a little bit optimistic on the leverage on the operating margin, but I'm not.
On this nice comment, Pascal, thank you very much for participating to this session this morning. We will have a call this afternoon. You are always welcome. There is a lot of new information on the website. Don't hesitate to go there. Thank you very much, and thank you for the interest that you have in Dassault Systèmes.