to download the 2012 registration document. - Groupe M6

2012 FINANCIAL REPORT• Virtually recurring investments (licencing rights purchases by SND, purchase and sale of players byFC Girondins de Bordeaux and renewal of technical and IT equipment) increased by €38.4 million to€112.7 million.Cash flow applied to financing activities used up cash resources of €163.7 million in 2012 compared to€162.6 million in 2011.This €1.1 million negative movement may be explained as follows:• usage of other financial assets increased by €19.2 million, corresponding to the transfer of €20 millionon an escrow account in the name of the City of Bordeaux as part of the planned construction of anew stadium;• the share buyback and liquidity programmes had an adverse effect of €16.2 million, compared to anegative €32.5 million in 2011;• there was a slight reduction in dividends paid (€2.3 million);Furthermore, during the year to 31 December 2012, none of these credit facilities were drawn down.The financial year thus resulted in a €13.0 million decrease in cash and cash equivalents.Cash and cash equivalents thus totalled €315.6 million at 31 December 2012, compared to €328.6million at 31 December 2011.Considering the debt position, the Group thus went from a positive net cash position of €329.4 million atthe 2011 year-end to a positive €317.5 million at 31 December 2012 (the net cash position is defined ascash and cash equivalents, plus current account balances and loans granted, less bank overdrafts andfinancial debt).5.2.3. Cash management policyThe cash management policy is detailed in Note 22.3 “Investment policy” to the consolidated financialstatements of this document, which covers financial instruments.5.2.4. Investment policyA significant element of the M6 Group’s business is the acquisition of rights and the production of shows.These “investments” in programmes are treated as operating expenses. They are therefore not capitalisedbut recognised as off-balance sheet commitments before the rights are opened, and then in inventory afterthe rights are opened.M6’s capital expenditure policy is driven by the following:- providing the Group with the necessary resources to develop future growth drivers that meet thechallenges resulting from new broadcasting modes and media viewing patterns;- the strategic necessity to supply existing operations with the best content and products possible inorder to confirm their positioning and attractiveness;- the importance of providing the Group with a safe and efficient working environment, both in termsof infrastructures and equipment (offices, production resources, etc.) and information andbroadcasting systems;- TV network obligations and contractual commitment obligations, as well as regulations that governthese activities. In 2010, in order to develop its e-commerce activities, the Group acquired monAlbumphoto.fr, aleading player in the online photo book market.In addition, with a view to supporting existing activities, guaranteeing a continuing policy of improving142 - M6 GROUP - 2012 REGISTRATION DOCUMENT