to download the 2012 registration document. - Groupe M6

2012 FINANCIAL STATEMENTS AND RELATED NOTESattention to the selection process of instruments and to diversifying counterparts, depositaries andmanagement companies.Certain prudent rules have also been enacted as part of the Group’s cash management:- not to invest more than 20% in a single management company (or in a single company issuingcommercial paper);- select banks holding deposits rated as investment grade (minimum BBB-);- not to hold more than 5% of the assets of a fund (control ratio);- invest in funds having the following features: in the case of a management company with which the Group has had business relations forat least two years, the invested fund must have existed for at least two years; the asset managed by the master fund must be valued at more than €500 million; the year-on-year volatility of the fund is less than 0.25%; concerning the correlation of fund volatility with the fund’s benchmark index, the volatilityvariance must be less than 5 basis points; virtually all securities held by the fund (97%) must be rated as investment grade (minimumA2); the percentage of unrated securities must represent less than 5% of the fund.Nonetheless, due to the Group’s current cash position and the yield curve, the Group reserves the rightto stimulate income from its cash holdings:- on the one hand, by departing on a one-off basis and to a limited extent from one of the ruleslisted above, providing other prudential rules are strictly complied with, and more particularly byincreasing the investment of its cash holdings in the same management company to 30% or byinvesting in funds rated at least B+;- on the other hand, by investing, in compliance with the prudential rules listed above, in funds thatcannot be classified as cash equivalents.In 2012, the Group increased its equity investment in an A + -rated counterpart to 35%, in order to takeadvantage of highly attractive interest rates.All securities in which the Group’s cash holdings are invested, as well as a list of securities in which theGroup would consider investing is monitored on a daily basis. On this basis, the Group arbitrates in favourof both the most regular and the most profitable funds, within the framework of the constraints listedabove.Investment yields are regularly measured and reported to management every month. A detailed analysisof the various risks of these deposits is also produced quarterly.DERIVATIVE FINANCIAL INSTRUMENTSThey are classified as other current financial assets when the market value of the instruments is positiveand classified as current financial liabilities when their market value is negative.M6 GROUP - 2012 REGISTRATION DOCUMENT - 197