Ubisoft 2001 Annual Report Download - page 64

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64
II. OTHER OPERATING INCOME
Other operating income breaks down as follows:
03.31.02 03.31.01
Capitalized production costs 77,001 60,723
Production subsidies 6,633 7,094
Write-back of provisions 2,186 3,063
Transfer of expenses 875 824
Other income 6,651 465
Total 93,346 72,169
III. OTHER OPERATING EXPENSES
Other operating expenses break down as follows:
03.31.02 03.31.01
Other external expenses 114,707 90,880
Other expenses 1,493 545
Total 116,200 91,425
Other external expenses consisted mainly of advertising expenses,
royalties, and the rental of property and movables.
IV. DEPRECIATION AND PROVISIONS
Depreciation and provisions break down as follows:
03.31.02 03.31.01
Depreciation of intangible
fixed assets 57,987 32,885
Depreciation of tangible
fixed assets 5,755 6,045
Provisions for charges to be spread
over several financial years 401 66
Provisions for current assets 2,572 1,972
Total 66,715 40,968
V. FINANCIAL INCOME
Net financial income breaks down as follows:
03.31.02 03.31.01
Conversion differentials 1,283 1,662
Interest and revenue from sales
of assets (9,609) (3,918)
Net depreciation (2,234) (884)
Total financial income (10,560) (3,140)
The conversion differential caused by using the historic cost
method is not significant.
The total conversion differential taken to share capital amounts
to. K531.
This total essentially reflects the fall in dollar values between
the historic value and the closing rate on March 31, 2002.
Currency risk:
In order to hold down the Group’s foreign exchange risks, Ubi Soft
Entertainment covers currency risks in several ways :
■when the parent company loans foreign currency to its subsidiaries,
it also takes out a loan in the same currency. Thus if the exchange
rate rises or falls, any gain or loss on the loan is offset by a gain
or loss on the parent company’s loan in the opposite direction.
■in the case of risks on currency sales associated with commercial
transactions, these are either automatically offset for the year by
other transactions in the opposite direction (purchases of goods
in a foreign currency offset by royalty payments by subsidiaries in
the same currency) or covered by forward sales contracts.