Ubisoft 2014 Annual Report Download - page 58

Management Report
2014
53
busy periods, as of March 31, 2014, the Group had a €214.5 million syndicated loan, €4 million in
loans, €75 million in confirmed credit facilities, other bank credit facilities totaling €55 million and €60
million in bonds and commercial papers for 63 million.
The Group’s liquidity risk is mainly induced by payment flows on derivatives and is therefore not
material.
INTEREST-RATE RISK
Interest-rate risk is mainly incurred through the Group’s interest-bearing debt. This debt is essentially
euro-denominated and centrally managed. Interest-rate risk management is primarily designed to
minimize the cost of the Group’s borrowings and reduce exposure to this risk. For this purpose, the
Group prefers to use fixed-rate loans for its long-term financing needs and variable-rate loans to
finance specific needs related to increases in working capital during particularly busy periods.
As of March 31, 2014, the Group’s debt included bonds, loans, commercial papers and bank
overdrafts, which were used essentially to finance the high year-end working capital requirements
relating to the highly seasonal nature of the business.
The sensitivity of debt to a change in interest rates is described in Note 14 to the consolidated financial
statements.
1.7.4.2 COUNTERPARTY RISK
The Group is exposed to counterparty risk – mostly banking-related – in the course of its financial
management. The aim of the Group’s banking policy is to focus on the creditworthiness of its
counterparties and thus reduce its risks.
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 results.
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 of March 31, 2014, the Company held 467,618 treasury shares with a value of €2,734 thousand.
Treasury shares are deducted from equity at cost of sale.
1.7.5 INDUSTRIAL OR ENVIRONMENT-RELATED RISKS
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 (see section 1.4.3.1.3 and section
1.4.3.1.4 of the “Sustainable development” section of this report.)