Net operating cash flow increased 8% to €449.1 million for the six months ended June 30, 2016, compared to €416.8 million for the 2015 First Half, reflecting higher net income.
In the 2016 First Half, the Company uses of cash were principally for cash dividends of €101.9 million, share repurchases of €43.3 million, payment for acquisitions net of cash acquired of €11.2 million, and capital expenditures of €18.4 million. The Company received cash for stock options exercised of €10.5 million.
The Company’s net financial position increased to €1.64 billion at June 30, 2016, compared to €1.35 billion at December 31, 2015, reflecting an increase in cash, cash equivalents and short-term investments to €2.64 billion from €2.35 billion, with long-term debt of €1.00 billion unchanged.
Summary of Recent Business, Technology and Customer Highlights
On July 21, 2016, Dassault Systèmes announced that it has entered into a definitive agreement to acquire CST, the technology leader in electromagnetic (EM) simulation, for approximately €220 million in an all-cash transaction. Based in Darmstadt, Germany, the privately-held CST will extend Dassault Systèmes capabilities for realistic multiphysics simulation to include full spectrum electromagnetic (EM) simulation. CST’s software is used by designers and engineers at more than 2,000 companies in the high-tech, transportation and mobility, aerospace and defense, and energy industries to analyze and solve EM interference, compatibility and environmental effects issues during electronics product development and systems integration. Customers include Airbus Defence and Space, BMW, Continental Automotive, LG, Raytheon, Samsung, and Siemens Energy. The acquisition is expected to be completed in Q4 2016, subject to regulatory approvals.
On June 2, 2016 Dassault Systèmes announced the acquisition of Ortems, a key provider of on premise and on the cloud capacity constraint-based production scheduling and dispatching software. The acquisition of Ortems, based in Lyon, France, extends Dassault Systèmes’ 3DEXPERIENCE platform and its industry solution experiences for next generation manufacturing, supply chain and delivery, by reinforcing production planning and scheduling along with DELMIA Quintiq supply chain planning and optimization capabilities, in order to plan, execute and optimize global industrial operations in manufacturing industries. Ortems complements Dassault Systèmes’ DELMIA brand applications, including DELMIA Apriso, to offer a unified experience to all users in digital manufacturing, manufacturing operations management, and supply chain planning and operations, built on a single referential data model.
Announced on June 9, 2016, Dassault Systèmes and Airbus Group Extend Collaboration to Additive Manufacturing. Airbus Group, after a two-year comprehensive benchmarking process, is extending its use of Dassault Systèmes’ 3DEXPERIENCE platform to its additive manufacturing programs integrating design, simulation and production. Airbus Group will deploy Dassault Systèmes’ collaborative design and simulation applications as part of the “Co-Design to Target” industry solution experience, for the additive manufacturing of tooling, prototyping and parts for test flights and for production use on commercial aircraft. This provides Airbus Group with digital continuity to optimize its conceptual designs by virtually validating each phase of the additive manufacturing process.
Dassault Systèmes Awarded Best Supplier by Group PSA in May, 2016. Dassault Systèmes was recognized for its 3DEXPERIENCE platform as a key enabler of the digital transformation of Group PSA’s global research and development.
On June 10, 2016 Dassault Systèmes and Cybernaut Investment Group Announced the Signing of an Agreement to Support Innovation in China with the 3DEXPERIENCE Platform. Dassault Systèmes and Cybernaut, a leading investment group in China focusing on emerging industries, signed a strategic cooperation agreement on a series of 3DEXPERIENCE platform-related projects including building Industry Parks, cultivating 3D talents and smart city programs.
Other Corporate Events
The Company reaffirmed its 2019 non-IFRS EPS objective of about €3.50 in conjunction with its Capital Markets Day held on June 10, 2016 at its corporate headquarters. The 2019 objective was initially outlined on June 13, 2014 at the Company’s prior capital markets day.
On May 26, 2016, at the Annual Shareholders’ Meeting, Dassault Systèmes’ shareholders approved an annual dividend per share equivalent to €0.47 per share for the fiscal year ended December 31, 2015, representing an increase of 9% compared to the prior year. In addition, shareholders again approved offering shareholders the option to receive payment of their dividend in the form of cash or in new Dassault Systèmes shares. The payment of the dividend was completed on June 24, 2016, with the cash payment in the aggregate amount of €100.1 million and the issuance of 280,734 new ordinary shares.
On May 26, 2016 at a Board of Directors’ meeting, directors approved the appointment of Bernard Charlès as Vice Chairman of the Company’s Board of Directors in addition to his role as Chief Executive Officer.