44
Annual Report -
2013
-
Vivendi
Group Profile | Businesses | Litigation |
Risk Factors
1
Industrial Risks or Risks Associated with the Environment
The Group’s operations do not pose any major industrial or
environmental risks. This is because the Group’s operations are, by their
very nature, primarily non-manufacturing, and a large proportion of the
Group’s assets are intangible. However, the Group remains alert to any
environmental damage that may arise or be discovered in the future, and
has set up programs intended to ensure the application of regulations
relating to this area (please refer to Section 2.8 “Raw Materials used in
the Group Businesses” of this chapter).
Risks Associated with the Current Economic and Financial Situation
The economic crisis of recent years has resulted in a severe contraction
in credit markets, a high level of volatility in stock markets and a
reduction in growth forecasts. The unfavorable circumstances of the
economic recession, in particular the reduction in consumers’ purchasing
power and level of confidence, could result in customers postponing
or reducing their spending on the products and services offered by the
Group or affect their ability to pay for them, which in turn may have a
negative impact on Vivendi’s revenues and results.
Each year, Vivendi conducts impairment tests on goodwill and assets
with definite or indefinite lives, to assess whether their book value
exceeds their recoverable value. Current economic circumstances may
cause Vivendi to recognize impairment losses for such assets (please
see Note 10 of the Appendix to the Consolidated Financial Statements -
Chapter 4 of this Annual Report).
Market Risks
For a detailed analysis of market risks (interest rates, foreign
exchange rates, market liquidity and stock prices), please refer to
Note 24 of the Appendix to the Consolidated Financial Statements
for the year ending December 31, 2013.
