Financing Information
Maintaining Strong Growth in Cash Flow from Operating Activities
Dassault Systèmes Capital Allocation
Our key uses of cash are focused on:
- Capital returns to shareholders in the form of dividends;
- Share repurchases to minimize share dilution from stock-based employee performance programs;
- Select acquisitions undertaken consistent with our Mission, Strategy and Addressable Market expansion objectives;
- Repayment of Financial Debt.
For the year ended December 31, 2018 uses of cash were principally for payment for acquisitions, net of cash acquired and non-controlling interests totaling €353.1 million; share repurchases of €206.3 million, cash dividends of €38.0 million (based on the shareholders electing payment of the dividend in cash); and capital expenditures, net of €72.4 million.
For the 2019 First Half ended June 30, 2019, uses of cash were principally for payment for acquisitions completed, net of cash acquired, of €402.8 million; to distribute cash dividends of €168.8 million (all dividends were paid in cash); capital expenditures, net of €48.2 million; and repayment for lease liabilities of €37.3 million.
Maintaining Significant Financial Flexibility with a High Level of Liquidity
At June 30, 2019, cash, cash equivalents and short-term investments totaled €3.09 billion.
On June 12, 2019 we signed a definitive merger agreement to acquire Medidata Solutions, Inc., in an all cash transaction for an enterprise value of $5.8 billion. On an equivalent basis, the cash purchase price will be paid with Bonds in the amount of €3.65 billion, a term loan in the amount of €1.0 billion and cash on hand in the amount of €1.1 billion. The transaction is expected to close in the third or fourth quarter, subject to receipt of CFIUS approval and other customary closing conditions.
Corporate Rating
S&P Global Ratings has assigned to Dassault Systèmes a rating of ‘A-‘, with a stable outlook and “Strong” business risk profile.
Bond Issue Program
The net proceeds of the issue of its inaugural senior unsecured Eurobonds, amounting to approximately €3.65 billion, will be used by Dassault Systèmes for general corporate purposes, including the financing in part of the acquisition of Medidata Solutions, Inc. and the refinancing at excellent conditions of a 650 million euro bank loan that was to mature in 2022.
|
Bond |
Date of issue |
Maturity Date |
Volume (in €m) |
Coupon (Payable Annually) |
|
2022 |
Sept. 16, 2019 |
Sept. 16, 2022 |
900 |
0% |
|
2024 |
Sept. 16, 2019 |
Sept. 16, 2024 |
700 |
0% |
|
2026 |
Sept. 16, 2019 |
Sept. 16, 2026 |
900 |
0.125% |
|
2029 |
Sept. 16, 2019 |
Sept. 16, 2029 |
1,150 |
0.375% |
Borrowings
|
As of June 30, 2019 |
|
Payments due by period |
||
|
in million euros |
Total |
Less than 1 year |
1-3 years |
3-5 years |
|
Term loan facilities in euro currency |
€1,000.0 |
€350.0 |
- |
€650.0 |