Ubisoft 2016 Annual Report Download - page 179

Financial statements
5
Separate fi nancial statements of Ubisoft EntertainmentSA for the year ended March31, 2016
With regard to the syndicated loan, the bilateral credit lines and the medium and long-term bank loans, the following covenants must
be complied with (determined on the basis of the IFRS consolidated annual fi nancial statements):
2015/2016 2014/2015
Net debt restated for assigned receivables/equity restated for goodwill < 0.80 0.80
Net debt restated for assigned receivables/EBITDA < 1.5 1.5
As at March 31, 2016, the Company is in compliance with all these ratios and expects to remain so during the 2016/2017 fi nancial year.
Other borrowings are not governed by covenants.
Finance lease agreement
Leased property Initial cost Provisions forthe period
Cumulative
depreciation and
amortization Net amount
Land 1,425 - - 1,425
Building 8,717 436 545 8,172
TOTAL 10,142 436 545 9,597
Finance lease commitments
Lease payments made Remaining lease payments
Residual
purchase
price
Lease
payments–
fi nancial year
Lease
payments
(cumulative) < 1 year Between 1& 5 years > 5 years Total to pay
Land - 1,437 1,437 -
Building 911 1,129 911 4,557 2,902 8,370 -
TOTAL 911 1,129 911 4,557 4,339 9,807 -
Other commitments
Since all members of staff are corporate offi cers, no retirement benefi ts are owed.
Ubisoft Entertainment SA has committed to provide fi nancial support to its subsidiaries in order to meet their cash fl ow requirements.
NOTE26 STAFF
NOTE27 MANAGEMENT COMPENSATION
At March 31, 2016, the staff consisted of fi ve corporate offi cers.
Compensation of corporate executive offi cers
Messrs. Guillemot are remunerated for their positions as CEO
and Executive Vice Presidents. This involves a fi xed compensation
element – whereby it should be noted that the Compensation
Committee proposed to the Board of Directors to attach to the
compensation of the CEO, with effect from April 1, 2014, a short-
term variable compensation element based on quantitative (factoring
in EBIT and sales) and/or qualitative criteria and extraordinary
compensation after achieving an operating income objective. With
regard to the past fi nancial year, the Compensation Committee
retained the principle of an annual variable compensation but not
that of exceptional compensation.
They do not have employment contracts.
The 21st and 23rd resolutions of the General Meeting of September 23,
2015 authorize the Board of Directors to allocate free preference
shares and/or ordinary share purchase and/or subscription
options to corporate executive offi cers of the Company. Corporate
executive offi cers in receipt of the award under the 21st resolution
cannot receive the award under the 23rd resolution and vice versa.
The awards under these two resolutions are subject to the fulfi llment
- Registration Document 2016 177