299
Annual Report -
2013
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Vivendi
4
Financial Report | Statutory Auditors’ Report on the Consolidated Financial Statements |
Consolidated
Financial Statements
| Statutory Auditors’ Report on the Financial Statements | Statutory Financial Statements
Note 24. Financial instruments and management of financial risks
24.3.
Credit and investment concentration risk and counterparty risk management
Vivendi’s risk management policy aims at minimizing the concentration
of its credit (bank credit facilities, bonds, and derivatives) and
investment risks as well as counterparty risk, as regards the setting-
up of bank credit facilities, derivatives or investments, by entering
into transactions with highly rated commercial banks only. Moreover,
regarding bond issues, Vivendi distributes its transactions among
selected financial investors.
In addition, Vivendi’s trade receivables do not represent a significant
concentration of credit risk due to its broad customer base, the broad
variety of customers and markets, and the geographic diversity of its
business operations.
24.4.
Equity market risk management
As of December 31, 2013, Vivendi and its subsidiaries held shares in the
following listed companies:
83 million Activision Blizzard common shares classified as “Assets
held for sale” in the Consolidated Statement of Financial Position,
the value of which is €1,078 million as of December 31, 2013; at
constant EUR/USD rate, a 10% decrease (or a 10% increase) in
Activision Blizzard’s share price would have a negative impact of
€108 million (or a positive impact of €108 million) on Vivendi’s net
income. These shares are subject to a 15-month lock-up period,
during which Vivendi cannot sell, transfer, hedge or otherwise
dispose of any Activision Blizzard shares directly or indirectly
(please refer to Note 7); and
95 million TVN shares indirectly held by N-Vision, consolidated by
Canal+ Group under the equity method (please refer to Note 15).
In addition, as of December 31, 2013, Vivendi holds call options and has
granted put options on listed or unlisted shares. Vivendi is thus exposed
to the risk of fluctuation in their values.
