Ubisoft 2005 Annual Report Download - page 78

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Bank overdrafts
Bank overdrafts are used to finance temporary cash requi-
rements generated by changes in working capital require-
ments. They may be offset with existing liquid assets at
other group companies as part of a notional cash pooling
system.
Leasing
Leases mainly cover computer hardware leased under
contracts of a maximum of three years. New borrowings
over the fiscal period amounted to €128 thousand and
repayments totaled €1,040 thousand.
Net borrowings
As of March 31, 2006, net financial debt stood at
€65,344 thousand.
Net financial indebtedness was reduced by €9,058 thou-
sand over the course of the fiscal year.
The breakdown of financial debt by currency is as follows:
Chief characteristics of the 3.80% bond issue
Number: 314,815 bonds.
As a result of the five-for-one stock split and the adjustment made in connection
with the issue of warrants for the purchase of existing shares and/or the subscrip-
tion of new shares in May 2003, one bond entitles its holder to subscribe for
5.191 shares, each with a par value of €0.31.
Nominal issue price: €164.64.
Due date and settlement day: July 16, 1998.
Term of bond: 7 years.
Annual yield: 3.80% per year, or €6.26 per bond, payable as of July 16 of each year.
Gross redemption yield: 3.80% on July 16, 1998.
Normal redemption: Amortized in full on July 16, 2005 by redemption at a price of €164.64, or 100%
of the issue price.
The issue was extended until October 10, 2005.
During the year, 148,576 bonds were converted, i.e. 771,255 shares were created, and 2,507 bonds were redeemed.
Chief characteristics of OCEANE (bonds convertible/exchangeable into new and/or existing shares):
Number: 3,150,000 bonds.
As a result of the adjustment made in connection with the issue of warrants for
the purchase of existing shares and/or subscription of new shares in May 2003,
one bond entitles its holder to subscribe for 1.037 shares, each with a par value
of €0.31.
Nominal issue price: €47.50.
Due date and settlement day: November 30, 2001.
Term of the bond: Five years from the settlement date.
Annual yield: 2.5% per year, payable in arrears on November 30 of each year.
Gross redemption yield: 4.5% on the date of settlement (if there is no conversion and/or exchange of
shares, and in the absence of early redemption)
Normal redemption: The bonds would be redeemed in full on November 30, 2006 at a price of €52.70,
or roughly 110.94% of their face value.
The company bought back a total of 1,400,699 bonds, which were then cancelled.
As of March 31, 2006, 1,749,301 bonds remain to be converted.
03.31.06 03.31.05
Financial debt 202,335 276,129
Cash -99,732 -141,131
Investment securities -37,259 -60,596
Net borrowings 65,344 74,402
03.31.06 03.31.05
Euros 193,949 225,634
US dollars 79 23,154
Canadian dollars 8,277 16,058
Pounds sterling 17 5,932
Australian dollars - 2,309
Swiss francs - 1,508
Other 13 1,534
Financial debts 202,335 276,129