Ubisoft 2004 Annual Report Download - page 67

Download and view the complete annual report

Please find page 67 of the 2004 Ubisoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 143

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

65
UBISOFT > 2005 FINANCIAL REPORT
2
FINANCIAL REPORT FOR THE FISCAL YEAR ENDING MARCH 31, 2005FINANCIAL REPORT FOR THE FISCAL YEAR ENDING MARCH 31, 2005
Note 5 Equity in subsidiaries
As of 3.31.05 As of 3.31.04
Gross Provision Net Net
Goods 24,272 2,423 21,849 35,128
Total 24,272 2,423 21,849 35,128
The change in scope of €167 thousand is attributable to the additional acquisition of 10% of Gameloft SA shares on April 16,
2004.
On November 17, 2004, Gameloft SA conducted a capital increase to which Ubisoft Entertainment SA did not subscribe. As a
result, the percentage interest held by Ubisoft Entertainment SA changed from 29.47% to 28.69%.
The impact of the capital increase on the equity in subsidiaries was €1,220 thousand.The impact of the dilution was
-€112 thousand on goodwill and €57 thousand on the share of equity capital.
Gameloft SA's contribution to Ubisoft Entertainment SA's earnings was €314 thousand as of March 31, 2005.
Note 6 Inventory and work-in-progress
Inventory and work-in-progress break down as follows:
Provisions for inventory fell from €3,875 thousand to €2,423 thousand, notably as a result of improved inventory
management and destocking efforts undertaken over the course of the fiscal year, which reduced the gross value of the
inventory by €14,731 thousand.
Note 7 Advances and installments paid
These are primarily guaranteed advances paid on licensing contracts.
Fixed assets As of 3.31.04 Increase Decrease Change Exchange rate As of 3.31.05
Gross in scope differences Gross
Equity in subsidiaries 325 1,591 57 167 - 2,026
Total 325 1,591 57 167 2,026
As of 3.31.04 New Reclassifications Depreciation Additional Exchange As of 3.31.05
Net guarantees depreciation rate Net
Trade advances 429 - - - 429
and installments
Licenses 31,347 15,709 -1,734 10,102 10,518 -439 24,264
Total 31,776 15,709 -1,734 10,102 10,518 -439 24,693
In light of the weak sales outlook for certain games, an additional depreciation of €10.5 million was charged to the results as
of March 31, 2005.
Note 8 Trade and other receivables
Trade receivables break down as follows:
3.31.05 3.31.04
Gross Provisions Net Net
Trade receivables 142,350 1,374 140,976 96,214
Total 142,350 1,374 140,976 96,214
The increasein tradereceivables is tied to especially high seasonality affecting sales in the fourth quarter (fourth-quarter
sales account for 41% of sales for the fiscal year as a whole).