Ubisoft 2001 Annual Report Download - page 40

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40
transmission of knowledge in the company. Moreover, human
resources policy, common to all the group, is positioned on its
ability to attract, train, retain and motivate staff with high
technical and managerial skill.
Risks relating to liquidity problems and exchange rate
volatility
Euronext market (Paris Bourse) has experienced, last
months, considerable fluctuations in prices and volume,
which have had a considerable impact on the share prices of
a large number of companies. Sometimes these fluctuations
were in no way linked to the operating performance of the
companies concerned. The attention of investors is drawn to
the fact that such major market fluctuations may adversely
affect Ubi Soft's share price.
Risks relating to future acquisitions and integration
of the companies acquired
Ubi Soft may proceed to an external growth transaction in
the medium and long term. The wholesome balance-sheet
structure of the company and the recent raising of funds (a
150 million bond convertible and a 130 million medium-
term syndicated line of credit) may minimize risks linked to
these transactions. However, these risks may be: dilution
of the company's current stock ownership, creation of long-
term debt, possible losses, creation of provisions relating
to either the need to report goodwill or to other intangible
assets, or have a negative impact on the company's profitability.
Furthermore, any acquisition or merger involves a number of
risks, in particular the possible departure of key staff in the
company target. This loss may have a considerable negative
impact on its sales, earnings or/and financial situation:
neverthless, Ubi Soft has always demonstrated its ability to
integrate acquisitions.
2.6.6 Commitments
The Group’s management has made no firm commitments on
future investments.
2.6.7 Insurances
The company does not carry business interruption coverage.
Furthermore, the group benefits from no special insurance
coverage.