As the world leader in Product Lifecycle Management (PLM) software solutions powered by 3D, our applications and services enable businesses of all sizes in all industries around the world to digitally define and simulate products, as well as the processes and resources required to manufacture, maintain, and recycle those products and improve our environment.

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Our software applications, solutions and services enable corporations of all sizes to digitally define and manage their products end-to-end from the conceptual stage through the manufacturing process and the product in service.

We organize our business and market our products and services principally according to customer requirements for two types of applications:

•   "Product Lifecycle Management" software solutions, in which customers need to support product development, production and maintenance (our PLM solutions include our CATIA, DELMIA, SIMULIA and ENOVIA brands).
•  "Mainstream 3D" software solutions, in which customers need to support product design (our SolidWorks brand).

Our software solutions and services are marketed and sold throughout the world, with Europe representing 47%, Americas 31% and Asia 22% of our 2006 total revenue.

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We believe that our leadership and increasing share of the global PLM market is due to our key business strengths.

• Long-term, integrated relationships with our customers
• Substantial commitment to technological innovation
• Brand strategy, with each brand having a clear identity and value to customers
• Extended enterprise model
• Resilient financial model, with a high level of recurring revenue

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We believe there are a number of opportunities to continue to grow our business. We have outlined below our most significant current growth opportunities.

• Win new accounts: Leverage each brand's excellence to win new accounts in every targeted industry vertical and application segment.
• Solution selling: Leverage the value of our integrated Version 5 PLM offering to sell an integrated PLM offering spanning design, digital manufacturing, simulation, and collaboration. Solution selling thus enables our customers to increase their productivity benefits beyond what they would have achieved through a stand-alone purchase.
• Expand the use of 3D: Expand 3D penetration among the 2D users' community and beyond engineering departments. Our SolidWorks brand is a key driver of 2D to 3D adoption.
• Expand indirect sales channels: Enhance our indirect sales channels to increase our penetration of small and medium business enterprises and emerging markets.
• Expand our total addressable market: Expand our addressable market towards new verticals, new software markets and new types of users.

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