Financing Information
Maintaining a High Level of 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;
During the 2020 First Half, cash from operations was used principally for the distribution of cash dividends totalling €182.5 million; capital expenditures, net of €87.4 million; repurchase of shares of €104.7 million related to our performance share grant programs and payment for lease obligations of €47.4 million. We received cash for stock options exercised of €47.3 million.
Net operating cash flow totalled €855.0 million for the First Half of 2020 compared to €893.6million in the prior year period.
Maintaining Significant Financial Flexibility with a High Level of Liquidity
Our net financial position totalled €(2.2) billion at June 30, 2020, compared to €(2.7) billion at December 31, 2019, reflecting cash, cash equivalents and short-term investments of €2.4 billion and debt related to borrowings of €4.6 billion.
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.
Corporate Rating
|
Agency |
Date |
Long term |
Outlook |
Short term |
Business risk profile |
Latest Report & PR |
|
S&P |
August 27th, 2019 |
A- |
Stable |
-- |
Strong |
S&P bulletin July 2020 |
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 June 30, 2020 |
|
Payments due by period |
||
|
in million euros |
Total |
Less than 1 year |
1-5 years |
5-10 years |
|
Bonds |
3,630.2 |
- |
1,591.3 |
2,038.9 |
|
Term loan facilities in euro currency |
971.7 |
1.8 |
969.9 |
- |
|
Accrued interests |
6.0 |
6.0 |
- |
- |
|
TOTAL |
4,607.9 |
7.8 |
2,561.2 |
2,038.9 |
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).
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. In May 2020, we exercised the option to extend its term for one year, bringing the new termination date to October 2025. As of June 30, 2020, the line of credit was not drawn down.