Ubisoft 2012 Annual Report Download - page 116

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Financial Statements
2012
111
Analysis of variable-rate net debt’s sensitivity to interest-rate risk
The Group’s exposure to a change in interest rates on net debt is presented in the following table:
Liabilities
Type of
rate
Rate
Nominal
Interest
p.a.
Change of 1%
Difference
Net cash from bank overdrafts
Variable
0.98%
75,956
743
1,504
761
Investment securities
Variable
0.39%
10,405
40
144
104
TOTAL
86,361*
1,064
1,648
865
* Excluding accrued interest and finance lease borrowing
LIQUIDITY RISK
As at March 31, 2012, the Group has financial debt of €91 million and net cash including liquid assets
and short-term investment securities of €84.6 million.
03/31/12
03/31/11
Financial liabilities excluding derivatives
(91,130)
(94,157)
Cash
165,291
189,182
Net investment securities
10,412
4,172
Net cash
84,573
99,197
In order to finance temporary needs relating to increases in working capital during particularly busy
periods, the Group took out a syndicated loan of €180 million, bilateral lines of credit for €95 million
and authorized overdraft facilities of €74.3 million on March 31, 2012. The Group has cash
agreements allowing centralized management at parent bank level of the bank accounts of the
majority of Group companies.
The syndicated loan and confirmed bank loans in place are governed by financial covenants that are
based on the ratio of net debt to equity and that of net debt to EBITDA.
Covenants
Under the terms of the syndicated loan and bilateral credit lines, the Company is required to fulfill
certain financial ratios (covenants).
The covenants are as follows:
2011/2012
2010/2011
Net debt restated for assigned receivables/equity restated for goodwill <
0.80
0.80
Net debt restated for assigned receivables/EBITDA <
1.5
1.5
All covenants are calculated on the basis of the consolidated annual financial statements under IFRS.
As at March 31, 2012, the Company was in compliance with all these ratios and expects to remain so
during the 2012/2013 financial year.
Other borrowings are not governed by covenants.