Ubisoft 2012 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 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

Management Report
2012
10
1.2.7 CHANGE IN THE WORKING CAPITAL REQUIREMENT (WCR) AND
DEBT LEVELS
The working capital requirements decreased by €35.2 million compared with a decrease of €25.9
million the previous year. The principal variations related to:
- Decrease in trade receivables €(65) million and inventory €(25) million,
- Increase in trade payables (€17 million) and other assets (€35 million).
The sharp fall in receivables is related to reduced activity at year-end and reduced recovery times. The
reduction in the inventory item reflects increased efforts in the management of inventories and
destocking activities.
The cash position at March 31, 2012 stood at €84.6 million against €99.2 million at March 31, 2011.
This variation is primarily due to:
Generation of cash flow from operating activities of €8.2 million,
Investment in property, plant and equipment and intangible assets of €(25.5) million,
Net buyback of Ubisoft shares of €(1.3) million,
Disposal of Gameloft shares of €13.7 million,
Acquisitions for a total of €(17.5) million,
Translation adjustments of €7.8 million.
1.2.8 ASSET FINANCING POLICY
The Company does not use securitization agreements, Dailly Act assignment of receivables,
repurchase agreements (with the exception of one-off operations), market opportunity functions,
factoring expenses of rights to Credit Multimedia shares in Canada (September 2011 and March 2012)
or research tax credit in France (September 2011).
However, the Company does use invoice discounting and receivables factoring, mostly in Germany
and the United Kingdom.
The factoring position is as follows:
in millions of euros
03/31/12
03/31/11
03/31/10
United Kingdom
10.2
15.8
19.8
Germany
6.8
12.6
20.4
Total
17.0
28.4
40.2
The Company finances its peak cash requirements using confirmed credit facilities of €275 million,
including a syndicated loan of €180 million as well as €95 million in bilateral credit lines.