Ubisoft 2013 Annual Report Download - page 131

Financial Statements
2013
126
The Group’s exposure to credit risk is mainly influenced by customer-specific factors. The statistical
profile of customers, notably including the risk of bankruptcy for each sector of activity and country in
which customers operate, has no real influence on credit risk.
Given the large number of customers in many different countries, and their presence in the mass retail
sector, the Company believes the counterparty risk on trade accounts is limited.
Ubisoft’s largest customer, in the North America distribution zone, accounts for 13% of Group sales
excluding tax. The top five account for 35% and the top 10 for 47%.
Moreover, in order to protect itself against the risk of arrears, the Group’s main subsidiaries, which
generate approximately 68% of Group sales, are all covered by credit insurance.
At year-end, the maximum credit risk exposure, represented by the carrying amount of financial
assets, was as follows:
03/31/13
03/31/12
Notes
Carrying
amount
Provisions
Net carrying
amount
Net carrying
amount
Available-for-sale financial assets
9
5,100
-
5,100
14,642
Trade receivables
7
38,523
1,904
36,619
(13,143)
Other current trade receivables
8
105,744
-
105,744
83,592
Foreign exchange derivatives
9
1,236
-
1,236
645
Stock futures
9
514
-
514
-
Current tax assets
15,987
-
15,987
13,691
Cash and cash equivalents
10
237,704
-
237,704
175,703
Exposure to counterparty risk
All cash must remain highly liquid by limiting capital risk exposure as much as possible. This should
therefore be invested in products with a high degree of security, very low volatility and a negligible risk
of changes in value. All instruments in which the Group invests meet the requirements of IFRS 7. For
instance, some prudential rules must be respected for the Group's cash investments:
- Never hold more than 5% of a fund’s assets;
- Never invest more than 20% of total cash in the same vehicle.
The Group diversifies its investments with top tier counterparties and monetary instruments with less
than three months’ maturity.
As of March 31, 2013, the Group’s investments consisted of cash UCITS and certificates of deposit.
Securities risk
Risk to the Company’s shares
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 over the last financial
year.
400,000 shares were purchased on the market (assigned to employee shareholdings) under the 6th
resolution of the General Meeting of 30 June, 2011.
As of 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.