Ubisoft 2004 Annual Report Download - page 46

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44
UBISOFT > 2005 FINANCIAL REPORT
Recent developments
April 2005
lAnew development studio was opened in Quebec that is
eventually expected to house 200 designers, animators
and programmers. This project is part of Ubisoft's
initiative to create 1,000 new jobs in Quebec between
now and 2010;
lAn exclusive agreement was signed with Pegasus Infinite
Digital Culture & Media Co. Ltd to develop a massively
multiplayer online game based on the Chinese fantasy
movie “The Promise” (“Wu Ji”);
lUbisoft ascended into the top five independent publishers
in the US for the first quarter of 2005. The group also
boosted its standing in Europe, ranking second in the UK
and France and third in Germany (source: GfK, Media
control, Chart Track, NPD).
1.9.1
May 2005
lSyndicated loan was signed for €100 million, replacing
the syndicatedloan for €130 million that was signed on
August 13, 2001, and reduced to €97.5 million on
April 22, 2002. This line of credit can be used for the
company's general needs and the refinancing of existing
loans as well as for acquisitions.
July 2005
l€12.2 million of capital gain before tax on sale of
5,155,000 Gameloft shares, for a total of €22.7 million
in cash. Ubisoftcrossed downward the 20% threshold in
the capital of Gameloft, now holding 19.9% of the
shares. Following this capital gain, the group revises
upward its net profit target for the 2005/2006 fiscal year
to €38 million in IFRS.
The group holds international coverage with regard to professional civil liability.
Each subsidiary is covered for risks relating to property damage, vehicles, apartments rented to employees on temporary
assignments and inventory in addition to holding medical coverage, etc.
Each subsidiary outsideFrance modifies and manages its local coverage in accordance with its business operations and
specific needs in each country.
The professional indemnity and third party liability insurance held by Ubisoft Entertainment covers the entire world except
the United States, Canada and Japan.
The following table summarizes the coverage limits for each type of insurance carried by the primary entities:
Ubisofthas signed a personal services contract for employees on professional assignment both in France and abroad. This
contract covers all employees at French sites who require assistanceand foreign repatriation.
The group's business operations do not in themselves pose an exceptional risk with regard to workplace accidents.
Certain companies, notably those in the United States, are insured against operating loss.
Coverage limits France United States Canada China
in K€ in K US $ in K CDN $ in K CNY
Professional indemnity insurance 9,485 3,600 18,050 1,000
Property insurance 4,270 5,046 24,515 7,804
Inventory insurance 7,865 7,000 1,250 -
Commitments
The group's management has made no firm commitments on future investments.
Insurance
1.8
1.7
Recent events, outlook and strategy
1.9