Atari 2010 Annual Report Download - page 47
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ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
47
The table below summarizes the Company's exposure to the US dollar:
(USD millions) -*.
,
,
#
,
/
,
# ,
Interest-rate risks
The Group does not have an aggressive interest-rate risk management policy. As of March 31, 2010, borrowings at
floating interest rates amounted to €7.2 million.
In the event of a 100 basis point increase in interest rates, the resulting additional interest expense for the year ended
March 31, 2010 would have been approximately €0.3 million or 7.8% of the cost of consolidated debt at that date.
In view of the afore-described risk sensitivity analysis, the Group considers that a change in interest rates would not have
a material impact on its financial position.
The table below shows the nature of interest on the Group's debt:
(€ million) March 31, 2010 March 31, 2009
Floating rate 7.0 50.0
Fixed rate 12.5 12.3
Total 19.5 62.3
As of March 31, 2010, the fixed-rate debt consisted primarily of the OCEANE 2011 and 2020, ORANE bonds and the
leaseback.
The table below shows the Company’s exposure to currency risks before and after hedging transactions.
March 31, 2010 Bond debt Bank debt Other debt and
borrowings Net exposure after
hedging
Fixed rate Floating
rate Fixed rate Floating
rate Fixed rate Floating
rate Fixed rate Floating
rate
Less than one year
7.0
7.0
One to two years 1.1
2.2
3.3
-
Two to three years 6.2
0.2
6.4
-
Three to four years 0.8
0.8
-
Four to five years 1.7
1.7
-
More than five years 1.3
1.3
-
Total 10.1
-
-
7.0
2.4
-
12.5
7.0
Credit risk
The Group has a worldwide customer base and manages its commercial risks so as not to be exposed to excessive
concentration of credit risks.
EXPOSURE TO INDUSTRIAL AND ENVIRONMENTAL RISKS
The Group's business consists of developing, publishing and distributing entertainment software. It has no significant
direct environmental impact. In general, the Group subcontracts all of the manufacturing of the digital media (CDs,
cartridges, etc.) to third parties.
RISKS STEMMING FROM POTENTIAL DILUTION
The Company has issued a significant amount of dilutive instruments, as set forth in section “Information concerning the
potential dilution of the Company’s capital”, of this document. As of March 31, 2010, these instruments had a potential
dilutive effect of 233.8 percent. A shareholder with 1 percent of the Company’s capital on March 31, 2010 would see his