Ubisoft 2003 Annual Report Download - page 90

FINANCIAL REPORT
2004
90
1. Equity swap contract:
As part of the transaction concluded with Crédit Lyonnais on
September 30, 2003, the latter will sell its shares at the end
of an 18-month period, on the understanding that Ubisoft will
record in its entirety any fluctuation in the share price from
the sale price of ¤18.66. Changes between the date on which
the contract is signed and its expiration will be recorded in
temporary accounts pending a final adjustment. Unrealized
gains are not recorded in the income statement. A provision
for risk and charges must be included for any unrealized
gains.
Crédit Lyonnais may transfer all or a portion of these shares
in advance at Ubisoft’s request.
3. Authorizations
Short-term lines of credit amount to ¤71 million; they are
unconfirmed and revocable with 30 days’ prior notice.
Confirmed bilateral lines of credit total ¤15 million and were
in full use as of March 31, 2004. These lines of credit are in
euros and US dollars.
A syndicated loan has been confirmed in the amount of
¤97.5 million; it was not in use as of March 31, 2004.
4. Other commitments
●Since the team consists of officers of the company,
no retirement compensation is owed.
●Various products are marketed under licensing agreements
signed by Ubisoft Entertainment SA. As of March 31, 2004,
the commitments accepted by the company provided for
the payment of guaranteed minimum royalties. At the
close of the fiscal year, commitments by virtue of this
guaranteed minimum amounted to ¤15.9 million.
●During the next fiscal year, abatements in the calculation
of corporate tax will be as follows (no increases have been
identified):
- Organic K¤78
- Exchange rate fluctuations K¤236
K¤314
●Ubisoft Entertainment SA has undertaken to provide financial
support to its subsidiaries to meet their cash requirements.
2.2.6.3 Compensation of corporate officers
Ubisoft Entertainment SA paid K¤525 to corporate officers
during the 2003-04 fiscal year as compensation. No attendance
fees were paid.
No loans or advances were made to officers of the company
in accordance with Article L 225-43 of the French
Commercial Code.
2.2.6.4 Events after closure of accounts
Employee shareholding within the framework of
the company mutual fund (FCPE)
The extraordinary portion of the Combined Ordinary and
Extraordinary General Meeting of September 12, 2003
authorized the Board of Directors at its sole initiative to
proceed with a new equity issue reserved for French employees,
subject to a limit of 2.5% of the total shares comprising the
company's share capital at the time the authorization was
used, specifically through the means of a company mutual
fund (or FCPE).
At its meeting on March 3, 2004, the Board of Directors
used the authorization granted by the General Meeting of
September 12, 2003, to set the subscription price of the
shares to be issued at ¤13.75 each, and specified that these
shares would be subscribed for by the Ubi Actions FCPE.
The employees subscribed for 99,627 shares via the Ubi
Actions FCPE. The Board of Directors took note of this equity
issue at its meeting on May 18, 2004.
Acquisition of Gameloft SA shares
On April 16, 2004, Ubisoft Entertainment SA acquired
6,284,876 shares of Gameloft SA at the price of ¤2.99. The
company now holds 31.55% of the voting rights.
Sale of shares
On April 26, 2004, Ubisoft Entertainment SA sold the shares
of its subsidiary Ubisoft World Studio SARL to Ludimédia SAS
for the amount of ¤199,950.
Initial value Depreciation Net value Payments Payments remaining Residual value
made to be made
< 1 year > 1 year
4,856 4,856 - 393 100 - 26
2. Leasing (in thousands of euros):
Leased assets consist primarily of IT hardware.