Part IV - Cash Flows Perform a detailed analysis of Ubisoft's cash flows for the year ended March 31, 2021, and a summary analysis of Ubisoft's cash flows for the five years ended March 31, 2021. A. (In reviewing the Balance Sheet and the Statement of Cash Flows you will notice that cash and cash equivalents ("Cash") on the Balance Sheet does not agree to Cash at the end of the period on the Statement of Cash Flows). Identify and briefly discuss the differences between Cash reported on the Balance Sheet and Cash reported on the Statement of Cash Flows for the year ended March 31, 2021. B. For the year ended March 31, 2021, identify material differences between reported total cash flow generated by operating activities and sustainable operating cash flow, if any. Also, in your team's opinion, how strong is Ubisoft's sustainable cash flow from operations and its sustainable free cash flow? C. Develop an overall summary of the key elements of Ubisoft's investing and financing cash flows for the year ended March 31, 2021. This is less about calculating the numbers and more about analyzing and evaluating what the numbers tell you, and the conclusions you can reach from the financial statements. Investing: Looking at the cash flow statement for Ubisoft. Throughout the five years there is an increasing change in the investing cash flow of Ubisoft as it looks like the company is doing a significant investment for the internal and external development this results in a large cash used for the investing activities. Cash flow generated for the 2021 in investing was the largest from the last five years. Financing Using the cash flow statement of Ubisoft for financing there 2020 and 2021 was the two years they were able to make money by selling and purchasing their own shares in which made the cash generated in financing activities a large number. 2021 was the only year the company Ubisoft had a change in ash management in their financial assets. D. Discuss the overall trends in Ubisoft's cash flows for the five years ended March 31, 2021, including detailed references to Group information from Ubisoft's financial statements. (As you reference Group information, note the page number and year of annual report for easy reference in class.) Ubisoft Entertainment SA and Subsidiaries Consolidated Cash Flow Statements For the Years Ended March 31, (In millions of euros) 2021 2020 2019 2018 2017 2016 Cash flows from operating activities Consolidated earnings 105.2 (124.2) 100.0 139.5 107.8 93.4 Net amortization and depreciation on PP&E 658.7 619.4 584.0 544.2 474.9 462.8 Net provisions (16.1) 2.3 22.0 4.1 (2.6) 0.4 Cost of stock-based-compensation 56.8 53.8 54.7 39.6 36.8 12.9 Gains/losses on disposals 0.9 0.7 0.3 0.3 0.4 0.1 Other income and expenses calculated 32.6 10.5 (5.4) 8.6 (10.7) 24.3 Tax expense 132.6 45.7 48.4 69.2 51.5 29.71 Cash flows from operating activities 970.7 608.2 804.0 805.5 658.1 623.61 Inventory 10.9 20.2 (31.3) 0.2 Customers (trade receivables) (45.7) 182.9 (18.0) (61.5) (5.4) 31.9 0.0 Other assets (excluding deferred tax assets) (131.4) 58.2 28.4 (81.0) 17.2 (402.9) (30.6) Suppliers (trade payables) 1.2 (49.2) 3.2 15.2 (45.1) 116.5 Other liabilities (excluding deferred tax liabilities) 316.8 (51.8) 6.4 49.4 24.9 61.6 Deferred income and prepaid expenses (81.2) (96.5) 248.4 (3.1) 0.0 0.0 1 Change in WCR linked to operating activities 70.6 63.8 237.1 (80.8) 23.5 Current tax (83.4) (71.6) (68.6) (33.5) (36.1) (255.4)| (27.6) Total cash flow generated by (used in) operting activi 957.9 600.4 972.5 691.2 645.5 340.6 Cash flows from investment activities Payments for internal and external developments Payments for other intangible assets (753.2) (651.2) (587.7) (521.3) (18.7) (17.8) 0.0 0.0 Payments for property, plant and equipment (78.1) (87.1) (74.4) (59.4) Proceeds from the disposal of intangible assets and P 0.1 0.2 0.0 0.0 0.6 Payments for the acquisition of financial assets (200.4) (215.7) (43.8) Security deposit CACIB 0.0 0.0 100.0 (31.5) (100.0) (44.4) 0.0 Refund of loans and other financial assets 198.1 210.5 42.1 29.8 43.3 (496.6) 0.0 (62.9) (489.5)! 0.0 (42.5) 0.1 (34.4) 0.01 34.1 Changes in scope (16.0) (143.8) (84.3) (77.6) (105.6) 0.4 Cash generated by (used in) investing activities (868.2) (904.9) (648.1) (760.0) (665.6) (531.8) Cash flow from financing activities New borrowings 1,139.6 935.2 603.7 899.7 Refund of borrowings in relation to leases (35.7) (35.6) Refund of borrowings (506.8) (584.9) Funds received from shareholders in capital increases 80.8 81.5 (1.3) (572.2) 131.9 (1.7) (487.7) 49.0 670.6 (0.9) (214.7) 234.5 (0.9) (230.2) 9.5 21.9 1 Change in cash management financial assets (239.9) 0.0 0.0 Sales/purchases of own shares 25.8 35.3 (201.9) 0.0 (411.5) 0.0 0.01 (67.8) (77.0); Cash generated by (used in) financing activities 463.8 431.5 (39.8) 47.8 396.7 (51.7) Net change in cash and cash equivalents 553.5 127.0 284.6 (21.0) 376.6 (242.9) Cash and cash equivalents at the beginning of the pe Foreign exchange losses/gains 986.9 878.6 583.3 632.2 255.6 505.2 24.8 Cash and cash equivalents at the end of the period 1,565.2 (18.7) 986.9 10.7 878.6 (27.9) 0.0 (6.7) 583.3 632.2 255.6 Ubisoft Entertainment SA and Subsidiaries Consolidated Balance Sheets March 31, (In millions of euros) 2021 2020 2019 2018 2017 2016 ASSETS Goodwill 220.7 334.6 290.7 259.5 180.7 106.2 Other intangible assets 1,453.2 1,115.3 882.9 782.4 736.5 647.6 Property, plant and equipment 199.8 174.4 160.0 114.1 106.4 83.9 Right-of-use assets 282.1 229.9 0.0 0.0 0.0 0.0 Investments in associates 0.0 0.0 0.0 (0.3) (0.1) 0.0 Non-current financial assets 16.1 13.7 8.7 106.9 5.5 4.3 Deferred tax assets 173.1 169.2 168.4 84.2 88.8 122.2 Non-current assets 2,345.0 2,037.1 1,510.7 1,346.8 1,117.8 964.2 i Inventory 23.1 12.4 31.9 20.3 25.4 19.4 Trade receivables 342.7 307.1 476.6 435.6 405.6 419.6 Other receivables 260.6 127.5 180.0 208.8 146.5 101.0 Current financial assets 0.0 0.5 0.2 8.3 1.1 13.8 Current tax assets 45.8 41.0 39.6 38.5 33.0 41.5 Cash management financial assets 239.9 0.0 0.0 0.0 0.0 0.0 Cash and cash equivalents 1,627.7 1,079.2 1,049.8 746.9 852.7 461.4 Current assets 2,539.8 1,567.7 1,778.1 1,458.4 1,464.3 1,056.7 4,884.8 3,604.8 3,288.8 2,805.2 2,582.1 2,020.9! Total assets LIABILITIES AND EQUITY Share capital Premiums 9.6 9.4 8.7 8.7 8.8 556.0 475.4 335.8 234.1 281.0 8.7 215.1 Consolidated reserves 987.0 955.4 475.6 507.1 736.3 701.3 Consolidated earnings 103.1 (125.6) 100.0 139.5 107.8 93.4 Equity attributable to owners of the parent company 1,655.7 1,314.6 920.1 889.4 1,133.9 1,018.5 Non-controlling interests 9.3 7.1 0.0 0.0 0.0 0.01 Total equity 1,665.0 1,321.7 920.1 889.4 1,133.9 1,018.5 i Provisions Employee benefit liabilities 5.0 21.6 3.1 15.8 Long-term borrowings and other financial liabilities 1,894.9 1,176.2 2.5 14.4 890.4 3.1 10.3 4.2 8.9 9.1 6.6 933.6 640.7 277.4 Deferred tax liabilities Other non-current liabilities 158.5 34.3 109.5 127.9 96.0 72.8 47.6 59.6 0.0 0.0 0.0 0.0 Non-current liabilities 2,114.3 1,364.2 1,035.2 1,043.0 726.8 340.5 1 Short-term borrowings and other financial liabilities 200.0 246.9 453.3 361.5 293.4 228.2 Trade payables 152.0 139.2 188.8 176.6 178.3 206.2 Other liabilities (includes deferred revenue) 737.8 517.7 664.6 321.9 219.8 213.8 Current tax liabilities 15.7 15.1 26.8 12.8 29.9 13.7 Current liabilities 1,105.5 918.9 1,333.5 872.8 721.4 661.91 Total liabilities and equity 4,884.8 3,604.8 3,288.8 2,805.2 2,582.1 2,020.9