Ubisoft 2004 Annual Report Download - page 72

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70
UBISOFT > 2005 FINANCIAL REPORT
Note 14 Financial debts
Financial debt breaks down as follows:
3.31.05 3.31.04
Bond debentures 172,038 172,038
•Convertible bond, 3.8% 24,876 24,876
•Bonds exchangeable or convertible) 92,188 92,188
to new or existing shares (OCEANE
•Bonds with redeemable share 54,974 54,974
subscription warrants (OBSAR)
Accrued interest 1,705 1,778
Advances in foreign currencies140,930 26,200
Short-term loans - 4,245
Bank overdrafts 70,304 37,761
Borrowings resulting from restatement of leases 988 1,554
Miscellaneous financial debt - 16
Financial debt 285,965 243,592
Fixed-rate debt 119,478
Variable-rate debt 166,487
< 1 year > 1 year and < 5 years > 5 years
Maturities outstanding on 3.31.05 138,351 147,614 -
1- Advances in foreign currencies are foreign exchange hedges in US, Canadian and Australian dollars, Swiss francs and Japanese yen.
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 syndicatedloan:
The following covenants must be respected with regard to
the OBSAR:
The covenants on bilateral lines of credit primarily concern
the ratio of net debt to equity capital and that of net debt
to total cash flow from operations.
All covenants are calculated on the basis of the annual
consolidated accounts.
As of March 31, 2005, the company was in compliance with
all of these ratios and expects to remain so during the
2005/2006 fiscal year.
2004/2005 2003/2004
Net debt/equity capital restated 0.6 0.75
to reflect goodwill <
Net debt/EBITDA < 2.5 2.5
Net freecash flow 0 0
excluding acquisitions >
2004/2005 2003/2004
Net debt restated to reflect factored 2.2 2.5
receivables/equity capital restated
to reflect goodwill and investments
in game developments
Net debt restated to reflect assigned 4.5 4.5
receivables/EBITDA restated to reflect
investments in intangible assets
Bank overdrafts
Bank overdrafts are used to finance temporary cash
requirements generated by changes in working capital
requirements. They may be offset with existing liquid assets
at other group companies as part of a notional cash pooling
system.
Leasing
Leases mainly cover IT hardware leased under contracts of
amaximum of three years. New borrowings over the fiscal
period amounted to €405 thousand and repayments
totalled €972 thousand.
Net borrowings
As of March 31, 2005, net financial debt stood at
€83,975 thousand.
Net financial indebtedness was reduced by €39,570 thousand
over the course of the fiscal year.
As of March 31, 2005, the redemption premium amount
stood at €2,825 thousand, giving a net redemption
premium debt of €81,150 thousand, compared to
€119,027 thousand at the close of the previous fiscal year.
This decrease of €37.8 million is the result of operating
cash flow generated (excluding acquisitions) of
€50.6 million, acquisitions totaling €19.4 million and
capital increases amounting to €6.6 million.
3.31.05 3.31.04
Financial debt 285,965 243,592
Cash -141,131 -76,915
Investment securities -60,859 -43,132
Net borrowings 83,975 123,545