2007 Annual report - Groupe M6

MANAGEMENT REPORT
Due to this prudent policy, the risk of non-payment of M6 advertising campaigns is less
than 0.1% of advertising revenues.
TV advertising: Free-to-air TV and digital TV advertisers
This population of advertisers is highly stable, with more than 90% recurring customers year
on year. It virtually only comprises companies listed on the first and second compartments
of the Euronext Paris Stock Exchange.
Internet and press advertisers
These customers commit much smaller amounts and primarily operate on a one-off basis.
A single team follows up the risk represented by these customers taking account of their
industry, unit cost of their campaigns and potential history in the customer base.
There are no individual customer risks of importance that would impact the Group’s
sustained profitability for its other activities.
The Group neither securitises nor refinances trade receivables.
14.2
14.2.1
Market risks
Foreign exchange risks
The Group is primarily exposed to foreign exchange risk through the purchase of audiovisual
rights, both for broadcast on its TV networks and for its cinema distribution activity. These
purchases are primarily denominated in US dollars.
The foreign exchange risk management policy implemented by the Group is highly prudent:
hedging is systematically undertaken at the signing of supplier contracts and is weighted
as a function of the underlying risk and contractual maturity.
Only rights acquisition commitments exceeding 24 months are partly hedged.
Instruments used by the Group are primarily forward purchases, and, to a lesser extent,
the purchase of foreign exchange options.
The currency forward hedge portfolio is subject to constant follow-up. Maturity dates are
reviewed on a monthly bases in connection with operational departments concerned.
M6 GROUP - 2007 annual report
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