Ubisoft 2004 Annual Report Download - page 34

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32
UBISOFT > 2005 FINANCIAL REPORT
Asset financing policy
The company does not use lease contracts, securitization, transfers of receivables pursuant to France’s Dailly Law, sales
with the option to repurchase or the like; it prefers to obtain financing directly on the market, specifically by means of bond
issues.
It occasionally makes use of factoring and discounts, primarily in Germany and the UK.
Pro forma accounting
In addition to presenting its consolidated accounts according to French accounting standards, Ubisoft also presents pro
forma accounts in which in-house development costs are stated as expenses, as is the practice of certain American video-
game publishers.
Differences between the standards:
lFrench standards (French GAAP):
-In-house research and development expenses are reported as fixed assets and then amortized.
lPro forma data:
-In-house research and development costs are entered in the accounts as charges.
According to this pro forma presentation, the main impact on the 2004/2005 accounts can be stated as follows:
1.2.9
1.2.8
(€M) 2004/2005 2003/2004
Operating income (before amortization of goodwill) 41.1 20.1
Net income (before amortization of goodwill) 27.0 8.8
Net income (after amortization of goodwill) 19.8 2.8
(In euros per share)
Net earnings per share (before amortization of goodwill) 1.52 0.50
Net earnings per share (after amortization of goodwill) 1.12 0.16
Unaudited pro forma presentation.
Impact of pro forma presentation on operating income over the last five fiscal years:
(€M) 2004/2005 2003/2004 2002/2003 2001/2002 2000/2001
Published operating income 41.4 1.5 31.6 31.0 7.9
-Capitalized R&D expenses -99.9 -79.8 -72.1 -77.0 -60.7
+Amortization of intangible fixed assets 99.6 98.4 67.6 54.7 33.7
Pro forma operating income 41.1 20.1 27.1 8.7 -19.1
Unaudited pro forma presentation.