Financing Information

Maintaining a High Level of Cash Flow from Operating Activities

Dassault Systèmes Capital Allocation

We focus our uses of cash on:

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

For the half-year ended June 30^th, 2024, cash flow from operations totalled €1.13 billion, up 10% year over year thanks to the increase in net income adjusted for non-cash items and positive cash tax effects during the semester. Cash from operations was principally used for treasury shares buy-back and employee shareholding plan net of proceeds from stock options exercise for €272 million, and cash dividend payments for €303 million.

Maintaining Significant Financial Flexibility with a High Level of Liquidity

The evolution of our cash and net financial position reflects 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.

Our net financial position at June 30^th, 2024 totaled €1.04 billion, an increase of €0.46 billion, compared to €0.58 billion for the year ended December 31, 2023, reflecting cash, cash equivalents and short-term investments of €4.03 billion and debt related to borrowings of €3.00 billion at June 30, 2024.

Our adjusted net debt /IFRS EBITDAO ratio stood at 0.0x at December 31, 2023, compared to 0.4x at December 31, 2022, based on an adjusted net debt including the lease liabilities as reported under IFRS 16 of €33 million and an IFRS EBITDAO for the year ended December 31, 2023 of €2,040 million.

Corporate Rating

On November 17th, 2023, Standard & Poors Global Ratings re-affirmed their “A” rating with a stable outlook for Dassault Systèmes SE and its long term credit.

Agency	Date	Long term	Outlook	Short term	Business risk profile
S&P	November 17^th, 2023	A	Stable	-	Strong
S&P	April 17^th, 2023	A	Stable	-	Strong
S&P	April 26^th, 2022	A	Stable	--	Strong
S&P	August 27^th, 2019 (inaugural)	A-	Stable	--	Strong

N.B : for the latest S&P report on the company please register on https://www.spglobal.com/ratings/en/products-benefits/products/ratings360

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. We have repaid the first tranche for €900 million, which matured on September 16, 2022.

Bond	Date of issue	Maturity Date	Volume (in €m)	Coupon (Payable Annually)
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, 2024		Payments due by period
in million euros	Total	Less than 1 year	1-5 years	5-10 years
Bonds	2,741,6	699,9	897,6	1,144,1
Term loan facilities in euro currency	0,9	0,2	0,7
Commercial Papers	248,8	248,8
Accrued interests	4,4	4,4
TOTAL	2,995,5	953,2	893,3	1,144,1

In July 2022, the Group launched a program of commercial papers (Negotiable EUropean Commercial Paper - NEU CP) with a maximum outstanding amount, authorized by the Board, of €750.0 million.

During the first half of 2024, the Group issued €910.0 million with a maximum maturity of three months and reimbursed €910.0 million under this program. As of June 30, 2024, the commercial papers total €248.8 million.

Our 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).

Line of credit

We 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. In May 2020 and May 2021, we exercised our option to extend its term for one year respectively, bringing the new termination date to October 2026. As of June 30^th, 2024, 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.