Ubisoft 2008 Annual Report Download - page 205

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UBISOFT ANNUAL REPORT 2009
fI n a n c I a l s t a t e m e n t s 02
Note 20. Depreciation, amortization and provisions
Depreciation, amortization and provisions break down as follows:
03.31.09 03.31.08
Amortization of intangible assets 197,372 212,746
Released commercial software 166,604 173,664
External developments 29,222 37,315
Office software 1,485 1,704
Other 61 63
Depreciation of property, plant and equipment 439 414
Fixtures and fittings 408 398
Computer hardware and furniture 30 14
Transport equipment 1 2
Total 197,811 213,160
Note 21. Net nancial income
Net nancial income breaks down as follows:
03.31.09 03.31.08
Financial income:
Share in profit of associates 1,552 1,540
Income from other securities and receivables on non-current assets 191 11
Other interest received (1) 67,717 15,281
Reversal of provisions 10,515 6,620
Foreign-exchange gains 25,118 8,330
Net proceeds on sale of investment securities 2,393 708
107,486 32,490
Financial expenses:
Amortization and provisions 3,914 1,842
Other interest paid 3,737 6,103
Foreign-exchange losses 29,588 16,495
37,239 24,440
Net Financial income 70,247 8,050
(1) Includes 1,243,121 sold shares related to the equity swap agreement on Ubisoft stock for €65 million.
Financial income from equity investments covers dividends Ubisoft Entertainment SA received from its Hong Kong (€1,409 thousand)
and Norwegian (€143 thousand) subsidiaries.
The reversal of provisions on equity investments are detailed in note 3. Non-current nancial assets.
Foreign-exchange risk
The company’s exposure to foreign-exchange risk stems from operating cash ows and its investments in foreign subsidiaries.
The company only hedges its exposures on operating cash ows in the main signicant foreign currencies (US dollar, Canadian
dollar and pound sterling). Its strategy is to hedge only one year at a time, so the hedging horizon never exceeds 18 months.
The company rst uses natural hedges provided by transactions in the other direction (development costs in foreign currency
offset by royalties from subsidiaries in the same currency). The parent company uses foreign currency borrowings, forward sales
or foreign-exchange options to hedge any residual exposures and non-commercial transactions (such as inter-company loans in
foreign currencies).
As of March 31, 2009, the amounts hedged giving rise to purchases and sales of foreign currencies amounted to €230,328 thousand
(see Note 2.3.6.2 Off-balance sheet commitments).