Ubisoft 2005 Annual Report Download - page 33

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1
31
UBISOFT • 2006 ANNUAL REPORT
FINANCIER
The group’s activities and performance for fy 2005-06
The group’s activities
and performance for
fy 2005-06
Introduction 32
1.1 Highlights of FY 2005-06 32
1.2 Analysis of activities and comments on results for FY 2005-06 33
1.2.1 Key figures 33
1.2.2 Quarterly and annual consolidated sales 35
1.2.3 Breakdown of sales by activity 35
1.2.4 Change in production volumes 36
1.2.5 Sales by platform 36
1.2.6 Sales by destination 37
1.2.7 Changes in the income statement 37
1.2.8 Change in working capital requirement (WCR) and indebtedness 37
1.2.9 Asset financing policy 38
1.3 Cash position and Stockholder equity 38
1.3.1 Changes in equity 38
1.3.2 Cash flow 38
1.3.3 Borrowing terms and financing structure 38
1.4 Human resources 39
1.4.1 Ubisoft worldwide key figures at March 31, 2006 39
1.4.2 A motivating, friendly work environment 39
1.4.3 Valuing individual and group performance 40
1.4.4 Skills development: a priority 40
1.4.5 Ubisoft employment in France 41
1.4.6 Social service activities 42
1.5 Environmental data 42
1.5.1 Recycling 42
1.5.2 Destruction of non-marketable products 43
1.5.3 Electrical consumption 43
1.5.4 Water consumption 43
1.5.5 Environmental risk 43
1.6 Subsidiaries and affiliates 44
1.6.1 Organizational structure as of March 31, 2006 44
1.6.2 Interests in subsidiaries and other companies 45
1.6.2.1 Change in % of interest 45
1.6.2.2 Disposal of shares 45
1.6.2.3 Share acquisitions 45
1.6.2.4 Equity issues 45
1.6.3 Activities of subsidiaries 45
1.7 General information 46
1.7.1 Investment policy 46
1.7.2 Research and development policy 46
1.7.3 Legal and arbitration proceedings 46
1.7.4 Real estate, plants and equipment 46
1.8 Risk factors 47
1.8.1 Risk relating to the rapid growth in new-generation consoles 47
1.8.2 Risk related to delays or a poor launch when releasing a top game 47
1.8.3 Risk related to recruiting problems 47
1.8.4 Risk related to the departure of key personnel 48
1.8.5 Risk arising from the termination of a licensing partnership 48
1.8.6 Risk related to intellectual property 48
1.8.7 Risk related to computer security 48
1.8.8 Risk related to customer dependence 49
1.8.9 Risk related to dependence on suppliers and subcontractors 49
1.8.10 Market risk 49
1.8.11 Risk related to future acquisitions and integration of companies acquired 51
1.8.12 Risk related to funding issues 51
1.9 Commitments 51
1.10 Insurance 51
1.11 Recent events, outlook and strategies 52
1.11.1 Recent developments/significant changes in the financial and trade position 52
1.11.2 Information on market trends 52
1