Ubisoft 2003 Annual Report Download - page 64

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Covenants
Under the terms of the syndicated loan and redeemable
share subscription warrant (OBSAR) and in the case of bilateral
lines of credit, the company is required to respect certain
financial ratios (known as covenants).
The following covenants must be respected with regard to
the syndicated loan:
●Net debt/shareholders’ equity excluding Goodwill < x
●Net debt/EBITDA < y
●Net free cash flow excluding acquisitions > z
The following covenants must be respected with regard to
the OBSAR:
●Net debt/shareholders’ equity restated to reflect goodwill
and investments in games developments < x’
●Net debt/EBITDA restated to reflect investments in intangible
assets < y’
The covenants on bilateral lines of credit primarily concern
net debt/shareholders' equity and net debt/total cash flow
from operations.
All covenants are calculated on the basis of the annual
consolidated accounts.
As of March 31, 2004, the company was in compliance with
all ratios and expects to remain in compliance over FY 2004-05.
Bank overdrafts
Bank overdrafts are used to finance temporary cash require-
ments generated by changes in working capital requirements.
Leasing
Leases mainly cover IT hardware leased under contracts of a
maximum of three years. New borrowings over the fiscal
period amounted to K¤680.
Repayment/buy-back of borrowings during the fiscal
year:
●Loans in connection with the reprocessing of lease
agreements in the amount of K¤1,316.
●Bonded debt in the amount of K¤10,541.
Net financial debt
At the close of FY 2003-04, net borrowings amounted to
K¤123,545.
Net financial indebtedness was reduced by K¤53,733 over the
course of the fiscal year.
As of March 31, 2004, the redemption premium amount
stood at K¤4,518, giving a net redemption premium debt of
K¤119,027, compared to K¤169,841 at the close of the
previous fiscal year.
The breakdown of financial debt according to currency is as follows:
FINANCIAL REPORT
2004
64
3/31/04 3/31/03
Financial debt excluding
government advances 243,592 299,394
Cash -76,915 -97,905
Investment securities -43,132 -24,211
Net financial debt 123,545 177,278
Chief characteristics of the 3.80% bond issue:
Number and face value: 314,815 bonds with a face value of ¤164.64.
As a result of the 5-for-1 stock split and the adjustment made in connection with the
issue of warrants for the purchase of existing shares and/or subscription for new
shares in May 2003, one bond entitles its holder to subscribe for 5.191 shares, each
with a par value of ¤0.31.
Dated date and settlement day: July 16, 1988.
Term of bond: Seven years.
Annual yield: 3.80% per year, or ¤6.26 per bond, payable as of July 16 of each year.
Gross redemption yield: 3.80% on July 16, 1998.
Normal redemption: Amortized in full by July 16, 2005 by redemption at a price of ¤164.64, or 100% of
the issue price.
163,728 bonds were converted, seven during this fiscal year.
As of March 31, 2004, 151,087 bonds remained to be converted.
3/31/04 3/31/03
Euros 214,285 278,636
US dollars 18,606 11,550
Canadian dollars 6,323 2,695
Australian dollars 4,361 -
Japanese yen - 397
Pounds sterling - 6,113
Other 17 3
Financial debt 243,592 299,394