Ubisoft 2006 Annual Report Download - page 84

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UBISOFT • FINANCIAL REPORT 2007
(1) Cash on hand
Cash on hand includes balances of cash and bank accounts in the net amount of €95,766 thousand on March 31, 2007, com-
pared to €99,732,000 at March 31, 2006.
(2) Investment securities made up of UCITS and open-ended investment trusts
(1) Fair value of financial instruments
(2) Fair value of the equity swap
Equity swap contract
The equity swap contract signed with Calyon on September 30, 2003 was extended until February 28, 2008. On that date,
Calyon will be able to sell its 1,436,274 Ubisoft Entertainment SA shares.
The equity swap contract is recognized at its fair value on the balance sheet and changes in fair value are recorded on the
income statement.
The change in value recorded on the income statement is €25,171 thousand.
A gain of €1,886 thousand was recognized following the sale of 200,000 shares in October 2006, which reduced the num-
ber of shares to 1,436,274.
The overall impact was €18,038 thousand after tax.
In light of the shares sold, the impact of a reduction of one euro in regards to the sale price (€9.33) would be €1,436 thou-
sand (1,436,274 shares after sale and 2-for-1 stock split).
Note 11 Cash and cash equivalents
The cash and cash equivalents item includes:
At March 31, 2006, since the fair value of the equity swap was very close to the margin calls, the difference shown on the
balance sheet was very low. At March 31, 2007, given that the margin calls are limited to €20 million and that the share
increased significantly, the amount of financial assets was €19 million.
03.31.07 03.31.06 Expiration date
Fair value 39,095 17,803 02.28.08
Margin call received - 20,094 - 17,710
Total 19,001 93
Cash and cash equivalents 03.31.07 03.31.06
Cash on hand (1) 95,766 99,732
Investment securities (2) 30,786 37,259
Total 126,552 136,991
03.31.07 03.31.06
Transaction Due Mark to Mark to
date date Market Market
Forward sales/purchasese
Australian dollars - 1
Canadian dollars January 2007 Sept 2007 73 48
February 2007 Sept 2007 3
US dollars 63
Pounds sterling 117
Forward purchases/sales
Canadian dollars Mars 2007 April 2007 2
Forward sales
Pounds sterling Dec 2006 April 2007 39
January 2007 April 2007 65
Total 182 227
The change in value recorded on the income statement is -€45 thousand.