to download the 2012 registration document. - Groupe M6

2012 FINANCIAL STATEMENTS AND RELATED NOTESBroadcasting rightsCommercial inventoryNet book value at 1 January 2012 165.5 29.3 194.8Acquisitions 270.1 148.4 418.5Expensed (239.7) (155.4) (395.2)Writedown (charge)/reversal 2012 (27.7) 1.6 (26.1)Net book value at 31 December 2012 168.2 23.9 192.1At 31 December 2011Cost or fair value 239.6 36.2 275.8Accumulated writedown (74.1) (6.9) (81.0)Net book value at 31 December 2011 165.5 29.3 194.8At 31 December 2012Cost or fair value 269.9 29.2 299.1Accumulated writedown (101.7) (5.3) (107.1)Net book value at 31 December 2012 168.2 23.9 192.1Total201222. Financial instrumentsThis note presents information on the Group’s exposure to each of the following risks, as well as itsobjectives, policy and assessment procedures and risk management.22.1. Credit riskThe credit risk represents the risk of financial loss for the Group in the event a customer was to fail tomeet its contractual duties.TRADE RECEIVABLESRisk assessment differs across Group operations.Advertising revenueIn order to secure its advertising revenues, the main step taken by the M6 Publicité advertising agency isto carry out credit inquiries. These are systematically carried out with the support of specialised externalcompanies on new customers and on an on-going basis on recurring customers.The latter represent the large majority of advertisers. The advertiser base thus appears relatively stable,with more than 90% of revenue being generated from the same customers from one year to the next.Furthermore, it comprises a majority of quoted French companies and French subsidiaries of majorinternational corporations.Based on the results of credit enquiries and the amounts incurred in relation to the campaign, differentpayment terms are granted to customers. In particular, M6 demands that advertisers who do not meet itssolvency criteria pay their campaigns in advance. These provisions are included in the terms andconditions of sale of the M6 Publicité advertising agency.Due to this prudent policy, the risk of non-payment of advertising campaigns remained less than 0.5% ofadvertising revenue (0.4% in 2011).In order to further curtail this risk, the M6 Publicité advertising agency imposes late payment penalties onunpaid invoices and has an internal team dedicated to recovering trade receivables.Non-advertising revenueAs regards non-advertising revenue, no single customer risk is material enough to significantly impair theGroup’s profitability.192 - M6 GROUP - 2012 REGISTRATION DOCUMENT