Ubisoft 2012 Annual Report Download - page 118

Download and view the complete annual report

Please find page 118 of the 2012 Ubisoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 192

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192

Financial Statements
2012
113
At closing, the fair value of foreign exchange derivatives is as follows:
03/31/12
03/31/11
USD
CAD
GBP
SEK
USD
CAD
GBP
AUD
SEK
JPY
Long-term hedges (1)
620
Swap
(118)
Net foreign exchange options
Qualifying foreign exchange hedging
derivatives
620
-
-
-
-
-
-
(118)
-
-
Long-term hedges (1)
(1,380)
(30)
(11)
25
(153)
(100)
(37)
-
(3)
(59)
Net foreign exchange options
Non-hedge foreign exchange derivatives
(1,380)
(30)
(11)
25
(153)
(100)
(37)
-
(3)
(59)
(1) Mark-to-market, level 2 in the hierarchy of fair value under IFRS 7
The amount of ineffective derivative instruments qualifying for hedge accounting under IAS 39 is
accounted for as financial income.
Exposure to foreign exchange risk
In thousands of currency units
USD
GBP
CAD
AUD
Net position before hedging*
186,917
66,901
(145,242)
36,109
Futures contracts
(10,400)
(1,000)
14,000
-
Net position after hedging
176,517
65,901
(131,242)
36,109
* Transaction position brought about by any operation triggering a payment or future earnings.
Credit and counterparty risk
Exposure to credit risk
Credit risk reflects the risk of financial loss to the Group in the event that a customer or counterparty to
a financial instrument may fail to meet its contractual obligations. This risk is mainly incurred on trade
receivables and investment securities.
The Group’s exposure to credit risk is mainly influenced by customer-specific factors. The statistical
profile of customers, notably including the risk of bankruptcy for each sector of activity and country in
which customers operate, has no real influence on credit risk.
Given the large number of customers in many different countries, and their presence in the mass retail
sector, the Company believes the counterparty risk on trade accounts is limited.
Ubisoft’s largest customer, the North America distribution zone, accounts for 10% of Group sales
excluding tax. The top five account for 39% and the top 10 for 50%.
Moreover, in order to protect itself against the risk of arrears, the Group’s main subsidiaries, which
generate approximately 85% of Group sales, are all covered by credit insurance.
At year-end, the maximum credit risk exposure, represented by the carrying amount of financial
assets, was as follows:
03/31/12
03/31/11
Notes
Carrying
amount
Provisions
Net carrying
amount
Net
carrying
amount
Available-for-sale financial assets
9
14,642
-
14,642
29,112
Trade receivables
7
(11,149)
1,994
(13,143)
49,263
Other current trade receivables
8
83,592
-
83,592
59,477
Foreign exchange derivatives
9
645
-
645
-
Current tax assets
13,691
-
13,691
10,574
Cash and cash equivalents
10
175,703
-
175,703
193,354
Other receivables from the customer Game, which is in a state of insolvency, are fully covered by the
credit insurer Coface for €6,690 thousand with the balance depreciated.