Financing Information

Maintaining Strong Growth in Cash Flow from Operating Activities

Dassault Systèmes Capital Allocation

We focus our uses of cash on:

Select acquisitions undertaken consistent with our Mission, Strategy and Addressable Market expansion objectives;
Repayment of Financial Debt;
Capital returns to shareholders in the form of dividends;
Share repurchases to minimize share dilution from stock-based employee performance programs;

For the year ended December 31, 2019, cash obtained from operations was used principally for payment for acquisitions, net of cash acquired of €5.2 billion; repayment of short- and long-term debt of €1.1 billion (including Medidata repayment debt for €0.1 billion); distribution of cash dividends of €169 million; capital expenditures, net of €98 million; and payment for lease obligations of €76 million. We also received cash from exercise of stock options of €90 million.

We completed the acquisition of Medidata Solutions, Inc. on October 28, 2019. The cash purchase price was paid with Bonds in the amount of €3.0 billion, a term loan, drawn in Euro and US dollar, in an aggregate amount of €1.0 billion, and with cash on hand, in Euro and US dollar, in an aggregate amount of €1.1 billion.

Net operating cash flow increased 32% to €1.2 billion for 2019 compared to €899 million in the fiscal year 2018.

Maintaining Significant Financial Flexibility with a High Level of Liquidity

Our net financial cash/(debt) positioned totaled €(2.7) billion at December 31, 2019, compared to €1.8 billion at December 31, 2018, reflecting cash, cash equivalents and short-term investments of €1.9 billion and debt via borrowings of €4.6 billion.

At December 31, 2019, our Adjusted Net Debt/IFRS EBITDAO ratio stood at 2.5x, based on an adjusted net debt (including the lease liabilities reported under IFRS 16) of €3,351 million and an IFRS EBITDAO (IFRS EBITDA adjusted for share-based payments) of €1,325 million.

Corporate Rating

Agency	Date	Long term	Outlook	Short term	Business risk profile	Latest Report & PR
S&P	August 27^th, 2019 (inaugural)	A-	Stable	--	Strong	S&P paper pdf S&P report_pdf PR_pdf

Bond Issue Program

We have used the net proceeds of the issue of our inaugural senior unsecured Eurobonds, amounting to approximately €3.65 billion, for general corporate purposes, including the financing in part of the acquisition of Medidata Solutions, Inc. and the refinancing of a €650 million 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 December 31, 2019		Payments due by period
in million euros	Total	Less than 1 year	1-5 years	5-10 years
Bonds	3,628.8	-	1,590.7	2,038.1
Term loan facilities in euro currency	968.0	-	968.0	-
Accrued interests	4.4	4.4	-	-
TOTAL	4,601.2	4.4	2,558.7	2,038.1

In connection with the acquisition of Medidata Solutions, Inc., we subscribed in October 2019 a term loan for €500.0 million bearing interest at Euribor 3 months +0.50% per annum and a term loan for $530.0 million bearing interest at Libor USD 3 months +0.60% per annum. Both loans have a 5-year term.

The Group’s financing facilities do not contain covenants linked to changes in the Group’s rating. A lower credit rating would result in an increase (capped) in the margins applicable to the credit facilities; symmetrically, a higher rating would lead to a decrease in the applicable margin (with a floor).

We repaid our previous term loans of €350 million at maturity on July 25, 2019 and our previous term loan of €650 million on September 23, 2019 following the bond issuance.

Line of credit

We have secured a financing commitment in the form of a revolving line of credit of €750 million for a period of 5 years from October 28, 2019. As of December 31, 2019, the line of credit was not drawn down.

Dassault Systèmes, the 3D EXPERIENCE Company, provides business and people with virtual universes to imagine sustainable innovations. Its world-leading solutions transform the way products are designed, produced, and supported.