Financing Information
Maintaining Strong Growth in Cash Flow from Operating Activities
Dassault Systèmes Capital Allocation
Our key uses of cash are focused 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, 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.
Net operating cash flow increased 34% to €1.00 billion for the first nine months of 2019 compared to €746.6 million in the 2018 period. For the 2019 nine-month period ended September 30th, 2019, cash obtained from operations was used principally for repayment of short- and long-term debt of €1.00 billion; payment for acquisitions, net of cash acquired, of €398.7 million; distribution of cash dividends of €168.8 million (all dividends were paid in cash); capital expenditures, net of €76.7 million; and payment for lease obligations of €56.6 million.
Maintaining Significant Financial Flexibility with a High Level of Liquidity
At September 30, 2019, Dassault Systèmes had a net cash position of €2.22 billion, compared to a net cash position of €1.81 billion at December 31, 2018. During the first nine months, cash, cash equivalents and short-term investments increased to €5.86 billion from €2.81 billion and total debt increased from €1.0 billion to €3.64 billion, of which €3.63 billion was long-term debt.
We completed the acquisition of Medidata Solutions, Inc. on October 28, 2019. Under the terms of the agreement, as announced on June 12, 2019, Dassault Systèmes acquired all of the issued and outstanding common shares of Medidata Solutions, Inc. for $92.25 per share in cash, representing a total enterprise value of approximately $5.8 billion. On an equivalent basis, the cash purchase price has been paid with Bonds in the amount of €3.00 billion, a term loan, drawn in Euro and US dollar, in an aggregate amount of €1.0 billion and cash on hand, in Euro and US dollar, in an aggregate amount of €1.1 billion.
Corporate Rating
|
Agency |
Date |
Long term |
Outlook |
Short term |
Business risk profile |
Latest Report & PR |
|
S&P |
August 27, 2019 |
A- |
Stable |
-- |
Strong |
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 September 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 |
- |
|
- |
|
During the third quarter ended September 30, 2019, we repaid our €350 million loan maturing on July 25, 2019. In addition, we also repaid an existing €650 million loan, set to mature in 2022.
Following the closing of Medidata acquisition, a new Term Loan facility, drawn in Euro and US dollar, for an aggregate amount of €1.0 billion, was set up on October 28, 2019 and is due to mature on October 28, 2024.