Ubisoft 2013 Annual Report Download - page 172

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Financial Statements
2013
167
The syndicated loan and confirmed bank loans in place are governed by financial covenants that are
based on the ratio of net debt to equity and that of net debt to EBITDA.
Within the context of the syndicated loan and bilateral lines of credit, the following covenants are to be
complied with:
2010/2013
2010/2012
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
All covenants are calculated on the basis of the consolidated annual financial statements under IFRS.
As at March 31, 2013, the Company was in compliance with all of these ratios and expects to remain
so during the financial year 2013/2014.
Other borrowings are not governed by covenants.
EQUITY SWAP ON GAMELOFT SHARES 3.6.2.2
On July 12, 2007, Ubisoft Entertainment SA signed two agreements with CACIB, an investment bank.
The first agreement relates to the disposal of all 13,367,923 Gameloft shares held by Ubisoft
Entertainment SA (representing 18.73% of Gameloft’s capital on the date the agreement was
concluded) at €6.08 per share.
The second relates to Ubisoft Entertainment SA’s ability to continue participating in upward or
downward movements in the Gameloft share price in relation to the €6.08 per share price set in the
first agreement, until such time as CACIB disposes of the shares to a third party.
OTHER COMMITMENTS 3.6.2.3
Since all members of staff are corporate officers, no retirement benefits are owed.
Ubisoft Entertainment SA has committed to provide financial support to its subsidiaries in order to
meet their cash flow requirements.
There are no finance leases.
MANAGEMENT REMUNERATION 3.6.3
Ubisoft Entertainment SA paid €725 thousand in compensation to its corporate officers during the
financial year 2012/2013.
In – very partial – compensation for their work and the time spent preparing and participating in Board
Meetings, the General Meeting of September 25, 2006, authorized the Company to pay directors’ fees
totaling a maximum of €250 thousand per annum. The Board of Directors, exercising this
authorization, established a fixed portion and a variable portion setting out new requirements.
During the financial year 2012/2013, members of the Board of Directors received €195 thousand in
directors’ fees.
No obligation has been undertaken by the Company in favor of its corporate officers related to their
termination or change in responsibilities.
Pursuant to Article L.225-43 of the French Commercial Code, no loans or advances were made to the
Company’s directors.
There are no agreements to compensate Board members if they resign or are dismissed without real
cause, or if their employment is terminated due to a public offering.