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;
Net operating cash flow totalled €1.24 billion for 2020, an increase of 5% compared to €1.19 billion in 2019. In 2020, cash from operations was used principally for repayment of debt, net of proceeds, of €382.4 million; distribution of cash dividends of €182.5 million; capital expenditures, net of €127.0 million; repurchase and sale of shares of €166.2 million related to its stock options and share grant programs; payments for acquisitions, net of cash acquired, of €89.5 million; and payment for lease obligations of €93.3 million. We received cash for stock options exercised of €87.7 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 totalled €(2.0) billion at December 31, 2020, compared to €(2.7) billion at December 31, 2019, reflecting cash, cash equivalents and short-term investments of €2.15 billion and debt related to borrowings of €4.19 billion.
Our Adjusted Net Debt / IFRS EBITDAO ratio stood at 1.8x at December 31, 2020, compared to 2.5x at December 31, 2019 based on an adjusted net debt including the lease liabilities as reported under IFRS 16 of €2.685 billion and an IFRS EBITDAO (IFRS EBITDA adjusted with share-based payment) of €1.453 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 December 31, 2020 |
|
Payments due by period |
||
|
in million euros |
Total |
Less than 1 year |
1-5 years |
5-10 years |
|
Bonds |
3,631.6 |
- |
1,592.0 |
2,039.7 |
|
Term loan facilities in euro currency |
556.4 |
13.7 |
542.7 |
- |
|
Accrued interests |
2.3 |
2.3 |
- |
- |
|
TOTAL |
4,190.4 |
16.0 |
2,134.7 |
2,039.7 |
In October 2019, we subscribed to 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.
On October 28, 2020 we redeemed early, as allowed by the financing contract, part of our term loans for €200.0 million and $230.0 million.
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 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 our option to extend its term for one year, bringing the new termination date to October 2025. As of December 31, 2020, the line of credit was not drawn down.