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;
For the first half, cash flow from operations increased 21% to €1.03 billion. Cash from operations was used principally for distribution of cash dividends of €147.1 million; capital expenditures, net of €56.8 million; repurchase and sale of treasury shares of €94.4 million related to its stock options and share grant programs; and payment for lease obligations of €49.2 million. Cash for stock options exercised totaled €74.9 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 improved to €(1.27) billion on June 30, 2021, compared to €(2.04) billion on December 31, 2020, with an increase in cash and cash equivalents of €0.77 billion to €2.92 billion from €2.15 billion, less debt related to borrowings of €4.19 billion.
Corporate Rating
On May 31, 2021, Standard & Poors Global Ratings confirmed their rating of “A-” with a stable outlook for Dassault Systèmes SE and its long term credit.
|
Agency |
Date |
Long term |
Outlook |
Short term |
Business risk profile |
Latest Report & PR |
|
S&P |
August 27th, 2019 |
A- |
Stable |
-- |
Strong |
S&P report May 2021 |
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 |
3,633.0 |
- |
1,592.6 |
2,040.5 |
|
Term loan facilities in euro currency |
554.1 |
328.6 |
225.6 |
- |
|
Accrued interests |
5.0 |
5.0 |
- |
- |
|
TOTAL |
4,192.2 |
333.5 |
1,818.2 |
2,040.5 |
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 and again on July 2, 2021 for €200.0 million and $150.0 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 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, 2021, the line of credit was not drawn down.