Ubisoft 2004 Annual Report Download - page 79

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77
UBISOFT > 2005 FINANCIAL REPORT
2
FINANCIAL REPORT FOR THE FISCAL YEAR ENDING MARCH 31, 2005
Initial value Depreciation Net value Payments made Payments still to be made Residual value
-1 year +1 year
1,217 993 224 149 145 103 48
2. Financial leasing
Leases mainly cover IT hardware leased under contracts of a maximum of three years.
3. Authorizations
Short-term lines of credit amount to €76.5 million; they are
unconfirmedand revocable with 30 days' prior notice.
Confirmedbilateral lines of credit represent €6.6 million and
were not in useas of March 31, 2005. Theselines of credit are
in euros.
Asyndicated loan is confirmed in the amount of €97.5 million;
it was not in useas of March 31, 2005.
4. Other commitments
Future guarantee payments
Various products are marketed under licensing contracts
signedby the group. As of March 31, 2005, the commitments
accepted by the group provided for the future payment of
guaranteed minimum royalties. Commitments by virtue of
this guaranteed minimum amounted to €28.3 million.
Individual right to training
France's law of May 4, 2004, grants French employees an
individual right to training. Under this new law, employees
may receivetraining at their initiative, with their employer's
approval.
Full-time employees enjoy the right to between 20 and
21 hours of training each year, in accordance with the
union provisions applicable within each firm.
These hours may be accrued for up to six years.
There are no other significant off-balance-sheet commitments.
1. Equity swap contract
As part of the transaction concluded with Crédit Lyonnais on September 30, 2003, and extended on January 5, 2005, for one
year, Crédit Lyonnais will sell its shares at the close of the operation on February 28, 2006. Ubisoft will record in full 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. As of March 31, 2005,
unrealized gains stood at €10,960 thousand.
Since 918,137 shares were sold, the impact of a reduction in the sale price (€18.66) of one euro would be €918,137.
Crédit Lyonnais may sell all or a portion of these shares in advance at Ubisoft's request.
Events after closure
of accounts
On May 13, 2005, a syndicatedloan of €100 million was
signed between Ubisoft Entertainment SA and ten banks. It
replaces the syndicated loan of €130 million signed on
August 13, 2001, and modifiedto €97.5 million on
April 22, 2002.
This loan is initially for a three-year periodand may be
extended by one additional year for the full initial amount
depending on the ratio of net debt to EBITDA.
Employees
As of March 31, 2005, the group's workforcebreaks down
as follows:
The average number of staff during the 2004/2005 fiscal
year was 2,705 persons.
There is no employeeprofit-sharing system within the
group.
2.1.11
2.1.10
3.31.05 3.31.04
Europe 915 911
Asia 353 234
Canada 1,110 719
USA 321 307
Morocco 42 52
Romania 218 114
Australia 13 15
Total 2,972 2,352