Ubisoft 2000 Annual Report Download - page 29

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28
the exclusive development of the virtual adventures of the firm’s
well-known characters.
As of 31 March 1998, Ubi Soft had 933 employees around the world.
1999 - 2000: A year of consolidation
Ubi Soft consolidated its growth thanks to:
>a considerable number of products, either from its own in-house
studios or from outside developers (56, compared with 32 in
1998/1999);
>a stronger license portfolio, with the signing of many new licenses,
including Disney, Warner and Sony Pictures, in particular;
>the consolidation of its distribution network with the creation of
new marketing subsidiaries in Belgium and Brazil;
>new design and production facilities in New York, Barcelona, Milan
and Tokyo.
The Group restructured itself into its current organization. The sale
and marketing of products was divided between two geographic
centers: EMEA (Europe, Mid East, Asia) and the USA. A corporate
structure based in Montreuil, France, was set up to manage the mar-
keting subsidiaries, the studios and product quality.
The capital increase conducted on November 3, 1999 by Ubi Soft
Entertainment SA was an unqualified success and enabled the com-
pany to raise 50.6 million euros. A second increase was carried out
on March 14, 2000 for a sum of 166 million euros.
>In January 2000, Ubi Soft shares were transferred to the Paris Bourse
Monthly Settlement listed securities market (“SRD”). There was also
a 5-for-1 stock split, resulting in a share face value of FF 2.
>In February 2000, Ubi Soft set up Ubi Ventures SA with capital of
100 million euros, a 99.99%-owned subsidiary of the Group specializing
in investing in start-ups and companies in the new economy. Ubi
Ventures has invested in companies involved in on-line games, content
and in the new communications technologies.
As of March 31, 2000, Ubi Soft Entertainment had 1,652 employees
around the world.
2000 - 2001: Selective acquisition of strong brands in a
changing sector
In 2000/2001, Ubi Soft Entertainment SA made timely acquisitions
which allowed it to consolidate its international organizational
structure and its portfolio of global brands. Ubi Soft now has a
varied catalogue which includes every genre (adventure, action,
strategy, racing etc).
>March 2000: Acquisition of the production studios Sinister
Games (United States) and Grolier Interactive Ltd (Great
Britain). These acquisitions strengthened the Group’s production
capacity in the United Kingdom and the United States and enhanced
its position in genres with strong growth potential.
Acquisition of GameBusters (Austria), a distribution company
which gives Ubi Soft a direct presence in this country.
>September 2000: Acquisition of Red Storm Entertainment,
a US video game publisher with hits such as the Tom Clancy’s Rainbow
Six series, a line with total sales of more than five million copies.
>February 2001: Acquisition of Blue Byte Software, a German
company which combines production, publishing and distribution
activities for video games mainly intended for PC. Blue Byte is noted
for creating The Settlers Series® and The Battle Isle Series™ (with
worldwide sales of 2.7 million units and 650,000 units respectively
up to February 2001).
>March 2001: Acquisition of the Entertainment Division of
The Learning Company.
This acquisition gave the Group exclusive publishing rights to more
than 80 titles, including Prince of Persia, Pool of Radiance™,
Chessmaster® and Myst®, the leading PC adventure game with
sales of more than 10 million copies worldwide.
Finally, Ubi Soft strengthened its distribution network with the pur-
chase in Italy of a 60% holding in 3D Planet SpA (July 2000) and
by taking over the distribution of software from the Guillemot
Corporation in Germany (May 2000), France (January 2001), the
Netherlands (March 2001) and Belgium and Canada (April 2001).
Four titles exceeded sales of a million units for the year: the
Rayman® series (Rayman®2 Revolution and Rayman®), the Tom
Clancy’s Rainbow Six series, Disney’s Jungle Book Groove Party and
Disney’s Dinosaur.
During the 2000/2001 financial year, Ubi Soft also concluded licensing
and publishing agreements which enhanced the quality of its catalo-
gue with Crave Entertainment, Sony Online Entertainement/Verant,
Sony Pictures, In Utero™, Codemasters and, in June 2001, Capcom.
Since August 2000, Ubi Soft Entertainment SA shares have been
eligible for the French deferred settlement system and are on the SBF
120 index.
The accelerated redemption of the October 1997 2% convertible
bond began on 30 April 2001, with the conversion period running
from May 21, 2001 to August 20, 2001 (conversion ratio: one bond
for 5 shares).