Ubisoft 2016 Annual Report Download - page 138

Financial statements
5Consolidated fi nancial statements asatMarch31, 2016
Analysis of fi nancial liabilities by maturity
03/31/16 Schedule
Carrying
amount
Total
contractual
cash fl ows(1) < 1 year 1 to 2 years 3 to 5 years > 5 years
Current and non-current fi nancial liabilities
Bank borrowings 287,920 287,920 19,090 2,437 266,262 131
Borrowings resulting from the restatement
offi nance-leases 9,453 9,453 900 863 2,545 5,145
Trade payables 206,246 206,246 202,910 1,167 1,868 301
Other operating liabilities(2) 213,807 213,807 207,737 3,437 633 2,000
Current tax liabilities 13,511 13,511 13,511---
Cash liabilities 205,687 205,687 205,687---
Derivative liabilities
Non-hedge derivatives 2,541 179,625 179,625
TOTAL 939,165 1,116,249 829,460 7,904 271,308 7,577
(1) Liabilities are presented at the closing exchange rate, while variable-rate interest is calculated based on the closing spot rate
(2) Others operating debts at more than one year are mainly related to the deferred payments of consideration transferred as part of business combinations
Foreign exchange risk
The Group is exposed to foreign exchange risk on its cash fl ows from
operating activities and on its investments in foreign subsidiaries.
The percentage of sales generated outside of the euro currency
area is 76%.
The Group only hedges its exposures on operating cash fl ows in the
main signifi 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 Group fi 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, futures or foreign exchange options
to hedge any residual exposures and non-commercial transactions
(such as inter-company loans in foreign currencies).
Derivatives for which documentation on the hedging relationship
does not meet the requirements of IAS 39 are not referred to as
accounting hedges.
As at March 31, 2016, foreign exchange transactions denominated
in Canadian dollars, US dollars and Pound sterling meet the cash
fl ow hedging requirements under IAS 39.
Hedging commitments are made by the parent company’s treasury
department in France. No hedging is taken out at subsidiaries in
France or abroad.
The Group uses foreign currency derivatives, measured at fair value,
only with standard banking institutions. These are top tier banking
institutions. Also, given the seasonal nature of the Group’s business
activities, there is a limited number of open positions at the statement
of fi nancial position date. As a result, the credit value adjustment
(entity’s own risk) is deemed to be immaterial.
At closing, the fair value of foreign exchange derivatives is as follows:
03/31/16 03/31/15
USD CAD GBP SGD JPY SEK USD CAD GBP DKK JPY SEK
Hedging* 4,886 5,510 3,211 (12,263) 1,734 (1,114)
Swap
Net foreign exchange options
QUALIFYING FOREIGN EXCHANGE
HEDGING DERIVATIVES 4,886 5,510 3,211---(12,263) 1,734 (1,114)---
Hedging* (2,243) (27) (94) 37 (58) 18 1,704 154 (3) 20 13
Net foreign exchange options
NON-HEDGE FOREIGN EXCHANGE
DERIVATIVES (2,243) (27) (94) 37 (58) 18 1,704 154 - (3) 20 13
* Mark-to-market, level 2 in the hierarchy of fair value under IFRS7
- Registration Document 2016
136