Ubisoft 2013 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2013 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 227

  • 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
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227

Management Report
2013
49
SECURITIES RISK 1.7.4.3
RISK TO THE COMPANY'S SHARES
In accordance with its share buyback policy and within the authorizations granted by the General
Meeting, the Company may decide to buy back its own shares. The fluctuations in the price of shares
bought in this way have no impact on the Group's income.
Treasury shares are held under a market-making and liquidity agreement signed with Exane BNP.
These purchases are made under the terms of a market-making agreement that complies with all
applicable regulations, and are designed to ensure the liquidity of purchases and sales of shares.
The Company allocated €1.7 million for the implementation of this agreement.
As at March 31, 2013, the Company held 511,523 treasury shares with a value of €2,524 thousand.
Own shares are deducted from equity at cost of sale.
RISK ON OTHER SECURITIES
The Gameloft shares are covered by an equity swap agreement signed by the Group with CACIB
(Crédit Agricole Corporate & Investment Bank).
On July 12, 2007, Ubisoft Entertainment SA signed two contracts with CACIB. The first concerns the
sale of all Gameloft shares held by Ubisoft Entertainment SA, or 13,367,923 shares at a price of €6.08
per share. The second is the opportunity for Ubisoft to continue to benefit from upward and downward
fluctuations in the share price in relation to the price of €6.08 per share until July 15, 2013.
Under IAS 39, all the risks and benefits have not been transferred; the Gameloft shares have been
classified as available-for-sale current financial assets.
The sale of Gameloft shares on the market by CACIB is recorded in the income statement.
The Gameloft shares not yet sold by CACIB are measured at fair value. The change in fair value of
shares not yet sold by CACIB is recognized in other comprehensive income.
At March 31, 2013, financial assets included €5.1 million in shares in the listed company Gameloft.
Information on the valuation of these shares is presented in Note 9 to the consolidated financial
statements and the accounting principles.
A 10% change in closing price would have an impact of €0.5 million on shareholders' equity.
INDUSTRIAL OR ENVIRONMENT-RELATED RISKS 1.7.5
The Group currently has no knowledge of any industrial or environmental risk.
Ubisoft did not record any provision, purchase any insurance to cover potential environmental risks, or
pay any compensation in this regard during the financial year.
The Group’s environmental footprint is presented and detailed in the "Sustainable Development" part
of this report.