Ubisoft 2008 Annual Report Download - page 165

163
UBISOFT ANNUAL REPORT 2009
fI n a n c I a l s t a t e m e n t s 02
Note 15. Current and non-current nancial liabilities
Financial liabilities break down as follows:
03.31.09 03.31.08
Bank borrowings and debts 22,632 23,323
Borrowings resulting from restatement of leases 50 -
Financial liabilities at more than one year 22,682 23,323
Bank overdrafts and short-term loans 60,212 55,732
Accrued interest 105 283
Borrowings resulting from restatement of finance leases 47 82
Derivatives 1,458 1,353
Financial liabilities at less than one year 61,822 57,450
Total 84,504 80,773
Fixed-rate debt 1,555 1,436
Variable-rate debt 80,317 76,014
Non interest-bearing debts 2,632 3,323
Note 16. Information on the management of nancial risks
In the course of its business, the Group may be exposed to varying degrees of interest-rate, foreign-exchange, nancing, liquidity,
counterparty and credit risks. The Group has established a policy for managing these risks. For each individual risk, the policy is
implemented as described below.
Interest-rate risk
Interest-rate risk is mainly incurred through the Group's interest-bearing debt. It is essentially euro-denominated and centrally
managed. Interest-rate risk management is primarily designed to minimise the cost of the Group's borrowings and reduce exposure
to this risk. For this purpose, the Group uses primarily xed-rate loans for its long-term nancing needs and variable-rate loans
to nance specic needs related to increases in working capital during particularly busy periods.
At March 31, 2009, the Group’s net debt included a variable-rate loan and bank overdrafts which, given the Group’s positive net
cash position, are used essentially to nance the high year-end working capital requirement entailed in the highly seasonal nature
of the business.
Analysis of variable-rate net debt's sensitivity to interest-rate risk
The Group's exposure to a change in interest rates on net debt is presented in the following table:
BORROWINGS Type of rate Rate Nominal Interest p.a. Change of 1% Difference
UK bank borrowing Variable 2.160% 20,000 432.0 632 200
Net cash from bank
overdrafts
Variable 1.09% -82,398 -901.8 -1,726 -824
Investment securities Variable 1.66% -94,597 -1,575.0 -2,521 -946
Total -156,995 (1) -2,044.8 -3,615 -1,570
(1) Excluding accrued interest and lease borrowing.