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 30th, 2022, cash flow from operations increased 1% to €1.05 billion. Cash from operations was used principally for treasury share buy-back, employee shareholding plan and stock option exercise of €378 million, loan repayments of €235 million and cash dividend payments of €224 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 debt at June 30th, 2022 decreased by €405 million to € 485 million, compared to € 889 million at December 31st, 2021, reflecting cash, cash equivalents and short-term investments of €3.16 billion and debt related to borrowings of €3.64 billion at December 31, 2021.
Corporate Rating
On April 26, 2022, Standard & Poor’s Global Ratings upgraded their rating to “A” 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 | April 26, 2022 | A | Stable | -- | Strong |
|
S&P |
August 27th, 2019 |
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.
|
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, 2022 |
Payments due by period |
|||
|
in million euros |
Total |
Less than 1 year |
1-5 years |
5-10 years |
|
Bonds |
3,635.9 |
900 |
1,594.1 |
1,141.8 |
|
Term loan facilities in euro currency |
2.2 |
1.2 |
1.0 |
|
|
Accrued interests |
4.4 |
4.4 |
||
|
TOTAL |
3,642.4 |
905.5 |
1,595.1 |
1,141.8 |
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.
We have voluntarily redeemed the remaining of the term loans, for €100.0 million on January 28, 2022 and on $150.0 million on February 28, 2022.
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, 2022, the line of credit was not drawn down.