Ubisoft 2012 Annual Report Download - page 155

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Financial Statements
2012
150
Note 22. Net financial income
03/31/12
03/31/11
Financial income:
Financial income from shareholdings
-
410
Other interest received
1,059
1,495
Reversal of provisions
1,985
720
Foreign exchange gains (1)
30,331
19,742
Net proceeds on sale of investment securities
37
41
33,412
22,408
Financial expenses:
Amortization and provisions
3,253
2,642
Other interest paid (2)
4,946
6,815
Foreign exchange losses (1)
32,137
24,028
40,336
33,485
Net financial income
(6,924)
(11,077)
(1) The foreign exchange loss of €(1.8) million is mainly related to price fluctuations in the Yen (€(0.8) million), the Australian
dollar (€(0.4) million), and the Canadian dollar (€(0.5) million).
Foreign exchange risk
The Company’s exposure to foreign exchange risk stems from operating cash flows and its
investments in foreign subsidiaries.
The Company only hedges its exposures on cash flows from operating activities in the main significant
foreign currencies (US dollar, Canadian dollar, pounds sterling and Australian dollar). Its strategy is to
hedge only one year at a time, so the hedging horizon never exceeds 18 months.
The Company first uses natural hedges provided by transactions in other directions (development
costs in a foreign currency offset by royalties from subsidiaries in the same currency). The parent
company uses foreign currency borrowings, forward sales or foreign exchange options to hedge any
residual exposures and non-commercial transactions (such as inter-company loans in foreign
currencies).
At March 31, 2012, the amounts hedged giving rise to purchases and sales of foreign currencies
amounted to €117,089 thousand (see note 3.6.2 Off-balance sheet commitments).
Note 23. Non-recurring items
Article 14 of the Decree of November 29, 1983 defines non-recurring items as those that are not
related to the normal operations of a company.
03/31/12
03/31/11
Non-recurring income:
Non-recurring income from management transactions
370
-
Non-recurring income from capital transactions
26,039
6,038
Non-recurring reversals
113,754
118,772
Non-recurring expenses:
Non-recurring expenses on management transactions
5
700
Non-recurring expenses on capital transactions
2,730
948
Non-recurring provisions
203,212
177,712
Non-recurring items
(65,784)
(54,550)