Page 53 - 2012 Annual Report

VIVENDI l 2012 l Annual Report 53
GROUP PROFILE – BUSINESSES – LITIGATION – RISK FACTORS 1
1
SECTION 4 - RISK FACTORS
Risks Associated with the Current Economic and Financial Situation
The on-going economic crisis has resulted in a severe contraction in
credit markets, a high level of volatility in stock markets and a reduction
in growth forecasts. The unfavorable circumstances of the economic
recession, in particular the reduction in consumers’ purchasing power and
level of confidence, could result in customers postponing or reducing their
expenditure on the products and services offered by the Group or affect
their ability to pay for them, which in turn may have a negative impact on
Vivendi’s revenues and results.
Each year, Vivendi conducts impairment tests on goodwill and assets with
definite or indefinite lives, to assess whether their book value exceeds
their recoverable value. Current economic circumstances may cause
Vivendi to recognize impairment losses for such assets.
Market risks
For a detailed analysis of market risks (interest rates, foreign exchange
rates, market liquidity and stock prices), please refer to Note 23 to the
Consolidated Financial Statements for the year ended December 31, 2012,
which contains a detailed analysis of market risks.
Industrial Risks or Risks Associated with the Environment
The Group’s operations do not pose any major industrial or environmental
risks. This is because the Group’s operations are, by their very nature,
largely non-manufacturing and a large proportion of the Group’s assets
are intangible. However, the Group remains alert to any environmental
damage that may arise or be discovered in the future, and has set up
programs intended to ensure the application of regulations relating to this
area (please refer to the note 2.9 “Raw Materials” section of this chapter).