Ubisoft 2002 Annual Report Download - page 57

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2003
57
FINANCIAL
REPORT
Accounts on March 31, 2003
XII.Provisions for risks and charges
Provisions for risks and charges break down as follows:
The increase in negative goodwill was related to the purchase
of the Swiss company Ubi Soft Entertainment SA on October
1, 2002. Taking a conservative approach, it was decided to
spread this negative goodwill over the same duration as the
amortization of positive goodwill, i.e.20 years.
As a result of the deconsolidation of Ubi Studios Ltd, the neg-
ative goodwill was spread over the entire fiscal period.
As of March 31, 2003,provisions for risks and charges covered:
provisions for retirement funds, which have been taken into
account since April 1, 2002
risks relating to a tax inspection,
risks relating to the closure of certain subsidiaries with low
levels of activity.
provisions for litigation.
Number of shares created 137,115
Face value 0.31
Subscription value 7.09
Subscription period From November 18 to 30, 2002
As of 03.31.02 Increase Appropriations Write-backs Consolidation change As of 03.31.03
Provisions for foreign exchange losses 9 - - 9 - -
Provisions for litigation 62 - 4 31 - 35
Provisions for subsidiary risks - - - 12 96 84
Provisions for retirement - - 300 - - 300
Other provisions 244 - - - - 244
Negative goodwill 166 40 - 167 - 39
TOTAL 481 40 304 219 96 702
XIII.Financial debt
Financial debt breaks down as follows:
03.31.03 03.31.02
Bond debentures 127,605 190,882
Borrowings from credit institutions - 152
Accrued interest 2,240 2,118
Advances in foreign currencies 20,877 18,799
Syndicated loans 65,000 -
Bank overdrafts 78,565 14,492
Borrowings resulting from restatement of leases 2,193 2,416
Miscellaneous financial debt 2,914 -
Advances by the State - 38
Financial Debts 299,394 228,897
< 1 an > 1 year and < 5 years > 5 years
Maturities outstanding on 03/31/03 105,673 193,721 -
The Group's fixed rate, variable rate and non-remunerated debt
amounted to K131,239,K165,241 K2,914 respectively.
Miscellaneous financial debt in the amount of K2,914
represents foreign exchange hedges in GBP and AUD on behalf
of Ubi EMEA SARL.
Advances in foreign currency of K20,877 represent foreign
exchange hedges in USD,CAD and GBP
Short-term lines of credit amount to 62.58 million; they are
unconfirmed and revocable with 30 days prior notice.
The syndicated loan of 65 million is confirmed credit.
Under the terms of the syndicated loan and in the case of bilateral
lines of credit,the Company is required to respect certain financial
ratios (i.e. "covenants").
The following covenants must be respected with regard to the
syndicated loan:
Net debt / shareholders' equity
Net debt / cash flow from operations
Free cash flow excluding acquisitions / sales