Ubisoft 2006 Annual Report Download

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ANNUAL REPORT 2007

Table of contents

  • Page 1
    ANNUAL REPORT 2007

  • Page 2
    table of contents UBISOFT • 2007 ANNUAL REPORT O1 PROFILE 02 04 06 08 10 12 CORPORATE MILESTONES: 1986 - 2007 CHAIRMAN AND CEO'S STATEMENT TOP MANAGEMENT KEY FIGURES AN ORGANIZATION WITH A GLOBAL REACH A DYNAMIC MARKET AT THE HEART OF ENTERTAINMENT TODAY 02 STRATEGY 16 > CLOSE TO THE CONSUMER ...

  • Page 3
    ... of a long-term strategy centered upon strong brands, worldwide direct distribution, talented people and innovation. This year, Ubisoft's audacious next-gen strategy translated into concrete gains with annual sales totaling â,¬680 million and an increased market share in key territories, all of...

  • Page 4
    ... of contents UBISOFT • 2007 ANNUAL REPORT INDEPENDENT PUBLISHER WORLDWIDE (EXCLUDING JAPAN) 4th 10 MUL TIMILLION UNIT-SELLING FRANCHISES MILLION IN SALES 2006-07 â,¬680 O1 PROFILE 02 04 06 08 10 12 CORPORATE MILESTONES: 1986 - 2007 CHAIRMAN AND CEO'S STATEMENT TOP MANAGEMENT KEY FIGURES AN...

  • Page 5
    ... of a long-term strategy centered upon strong brands, worldwide direct distribution, talented people and innovation. This year, Ubisoft's audacious next-gen strategy translated into concrete gains with annual sales totaling â,¬680 million and an increased market share in key territories, all of...

  • Page 6
    ... its internal growth strategy by opening up new studios in 6 different cities, including Montreal, and by further strengthening its global distribution network. The group acquires Red Storm, Blue Byte and The Learning Company's games division adding new hit brands to its catalog. In 2001, Ubisoft is...

  • Page 7
    ... top of the charts. Ubisoft acquires the rights to the acclaimed Driver® franchise, and welcomes the team from Reflections Interactive, giving the group a direct point of entry into the lucrative driving games segment. The acquisition of the rights related to the best-selling Far Cry® brand, as...

  • Page 8
    UBISOFT • 2007 ANNUAL REPORT chairman and chief executive officer's statement his past year, a successfully executed strategy, coupled with many highly acclaimed games for new consoles, made it possible for Ubisoft to outperform the market with annual sales totaling â,¬680 million, an increase of...

  • Page 9
    ... projects will allow us to enrich our characters and scenes as well as the quality of our game graphics. In the long-term, our goal is to produce a featurelength Ubisoft animated film. In addition, our teams are already working on internally-developed 2nd and 3rd generation game motors, in order...

  • Page 10
    ... This strategy has been proven time and again. As a result, the future will see us continue investing in our internal studios, as well as acquiring and establishing new ones when opportunities arise. We will also increasingly apply our internal production processes to our games developed by external...

  • Page 11
    ...FINANCIAL OFFICER "Underlying Ubisoft's success is the group's ability to seize good opportunities at the right time. Throughout the EMEA territories, the market is following an impressive growth trajectory, expected to continue over the next five years. As video games and new consoles, like the DS...

  • Page 12
    ... publisher on the wiiâ„¢ and #2 on the xbox 360â„¢ for 2006/07. the group managed not only to outperform its own growth forecasts, but also the market, registering an overall sales progression of 24.4%. consequently, ubisoft posted improved financial earnings and succeeded in ending the fiscal...

  • Page 13
    ...OF NUMBER OF EMPLOYEES 2007 2006 2005 2004 2003 508 2003 533 2004 547 2005 680 2,500 1,990 2006 3,950 3,500 3,000 453 GEOGRAPHIC BREAKDOWN OF SALES NORTH AMERICA EUROPE BREAKDOWN OF SALES BY PLATFORM OLD GENERATION CONSOLES 45% 49% 24% REST OF THE WORLD PC 6% 16% FINANCIAL...

  • Page 14
    ... and growing. CANADA rd independent publisher 1,923 north america USA Development studios th independent publisher Business offices Number of employees (2) per country/region (1) Excluding Japan. Source: NPD, Chart Track, Media Control, GFK, in value terms, calendar year 2006. (2) As of...

  • Page 15
    NORWAY SWEDEN FINLAND DENMARK europe + north africa 1,600 UNITED KINGDOM NETHERLANDS GERMANY BELGIUM AUSTRIA HQ Paris FRANCE SWITZERLAND ROMANIA BULGARIA ITALY EUROPE SPAIN SOUTH KOREA JAPAN MOROCCO CHINA asia pacific 411 independent publisher 2 nd AUSTRALIA 4 th INDEPENDENT ...

  • Page 16
    UBISOFT • 2007 ANNUAL REPORT a dynamic market at the heart of entertainment today ong gone are the days when video games were on the margins of the entertainment industry. today they stand proudly alongside films and music and, in 2006, the industry registered sales of $28.47 billion(1). seldom ...

  • Page 17
    ...online gaming. Despite the significant personal investment of time, and sometimes money, that MMOs and online gaming in general require, the possibility to compete and interact with people from around the world has converted a large number of Internet-users. EMERGING PROFILES Over the past 25 years...

  • Page 18
    UBISOFT • 2007 ANNUAL REPORT or over twenty years, fueled by its strategic vision, ubisoft has managed to thrive within a challenging industry and benefit from strong growth cycles. F STRATEG

  • Page 19
    ASSASSIN'S CREEDâ„¢ Ubisoft's new action/adventure brand from the group's award-winning development teams promises an awe-inspiring gaming experience. While Ubisoft has always remained faithful to the main pillars of its strategy, it has also known how to adapt to shifting market realities so as ...

  • Page 20
    ... a compelling investment. If our assumptions about market-share gains and contribution margin over the next three years are correct, we think that the company could substantially exceed our expectations each of the next 12 quarters, driving its share price even higher. MICHAEL PACHTER, RESEARCH ANAL...

  • Page 21
    ... to favoring in-house development and global direct distribution, recruiting the best and the brightest, fostering creativity and innovation and building strong brands, Ubisoft has established itself as an industry groundbreaker. The group is well on its way to reaching its objective of doubling...

  • Page 22
    ... Innovative Marketing Strategy Award" for T om Clancy's Rainbow Six® Vegas "Save-Vegas" Viral Campaign. Working hand-in-hand with marketing teams, Ubisoft's distribution network is responsible not only for ensuring that the games make it into the stores, but also for building close relationships...

  • Page 23
    ...loyalty, Ubisoft intends to continue integrating online operations into its overall business strategy. SERVICE EVERY STEP OF THE WA Y Ubisoft takes a long-term approach to service, convinced that the customer relationship continues long after the conclusion of a sale. Quality after-sales service is...

  • Page 24
    .... These international and strategic locations enable the group to attract the best talents from all corners of the globe and to form talented teams whose members are all driven by the same passion. 81% of Ubisoft employees work in production, bringing together their creative talent and technological...

  • Page 25
    ... video game about global hunger. In search of support to create a French version of the game, the WFP turned to Ubisoft. T eams were so motivated to have the opportunity to localize a project for such a worthy cause that they even volunteered to help the WFP promote and distribute its title, making...

  • Page 26
    ... possible for in-house programmers to continually push the technological limits. In recent years, the group has both developed a certain number of proprietary engines and benefited from external tools, which can be customized internally for use on different titles. The fact that Ubisoft has provided...

  • Page 27
    .... To support Ubisoft's knowledge management strategy, asset databases (sound, textures, graphics, etc.) and web-based collaborative work spaces have been set up to facilitate information sharing and help the group realize important productivity gains. The Academy of Experts, an internal think-tank...

  • Page 28
    UBISOFT • 2007 ANNUAL REPORT U BRAND bisoft's remarkable ability to consistently create strong brands constitutes one of its main competitive advantages. TOM CLANCY'S SPLINTER CELL CONVICTION™ is Ubisoft's latest installment in the Splinter Cell franchise, a break-through in the stealth ...

  • Page 29
    ...such as strategy and casual games. Hollywood movie and TV licenses have also helped to continue balancing out the catalog, and last year, 17% of the group's sales revenue was generated from license-based titles. With the goal of creating three new brands every two years, Ubisoft will actively pursue...

  • Page 30
    UBISOFT • 2007 ANNUAL REPORT BRAND " ...[Ubisoft] has amassed a number of top brands in recent years and is arguably one of the premier publishers in today's video game market. WWW.BIZ.GAMEDAIL Y.COM, FEBRUARY 14, 2007. " U bisoft's remarkable ability to consistently create strong brands ...

  • Page 31
    ...such as strategy and casual games. Hollywood movie and TV licenses have also helped to continue balancing out the catalog, and last year, 17% of the group's sales revenue was generated from license-based titles. With the goal of creating three new brands every two years, Ubisoft will actively pursue...

  • Page 32
    ... 2007 ANNUAL REPORT creating strong brands B rand creation lies at the heart of ubisoft's editorial strategy. in less than 10 years, the number of multimillion unit-selling brands in ubisoft's catalog has grown from 1 to 10. INVESTING IN EXISTING FRANCHISES The company seeks to further build its...

  • Page 33
    ...team of experts in Ubisoft's Shanghai studio and overseen by strategy veteran Michael de Plater, Tom Clancy's EndWarâ„¢ is being developed to take advantage of the power of next-gen consoles, packing the gaming experience with enough fucntions and features to rival any conventioned PC-based strategy...

  • Page 34
    ...• 2007 ANNUAL REPORT something for everyone A s the number of gamers continues to grow and their profiles become increasingly varied, ubisoft reaches out to these audiences by diversifying its portfolio, entering new domains and developing license-based titles inspired by the entertainment hits...

  • Page 35
    ... of the most successful brands in the history of video games. This past year, Ubisoft acquired the rights to Driver® and integrated the teams from its developer, Reflections Interactive. Driver® 76, the first title under the Ubisoft label, was released in January 2007 for the PS®P system and is...

  • Page 36
    nique gameplay and charismatic characters are at the heart of ubisoft's interactive universes. U brands: front and center DARK MESSIAH™ MIGHT & MAGIC Action/Adventure HEROES OF MIGHT & MAGIC® Strategy NEW D BRAN RED STEEL™ Action/Adventure NEW D BRAN TI MUL NAIRE MILLIO FAR CRY® ...

  • Page 37
    TI MUL NAIRE MILLIO BROTHERS IN ARMS® Shooter TI MUL NAIRE MILLIO RAYMAN® Family TI MUL NAIRE MILLIO TOM CLANCY'S RAINBOW SIX® Shooter ASSASSIN'S CREED™ NEW D BRAN Action/Adventure

  • Page 38
    HAZE™ Shooter NEW D BRAN TI MUL NAIRE MILLIO DRIVER® Action/Driving TI MUL NAIRE MILLIO THE SETTLERS® Strategy TI MUL NAIRE MILLIO TOM CLANCY'S GHOST RECON® Shooter

  • Page 39
    TI MUL NAIRE MILLIO TOM CLANCY'S SPLINTER CELL® Action/Adventure SILENT HUNTER™ Simulation BLAZING ANGELS™ Simulation TI MUL NAIRE MILLIO PRINCE OF PERSIA® Action/Adventure

  • Page 40
    ... so wide-ranging that it reaches from the skate park to the stars, from the crime lab to the beach, and all across the globe, Ubisoft truly offers something for everyone. NARUTOâ„¢ Anime TV

  • Page 41
    < FINANCIAL REPORT 2007

  • Page 42
    ...powers of the Chief Executive Officer 150 6.5 Auditor's report, prepared pursuant to Article L. 225-235 of the French Commercial Code, on the report of the Chairman of the Board of Directors of Ubisoft Entertainment S.A. concerning the internal audit procedures used to prepare and process accounting...

  • Page 43
    ...12 Risk factors Risk related to product strategy and brand positioning and management Risk related to market developments and the success of next-gen consoles Risk related to a top game being delayed or getting off to a poor start Risk related to recruitment and retention of talented employees Risk...

  • Page 44
    ... publisher and names Ubisoft Montreal as the fourth leading development studio for 2006. June 2006 Ubisoft opens a production studio in Sofia, Bulgaria. July 2006 Ubisoft acquires the Driver® franchise for â,¬19 million, giving the Group a direct point of entry into the key driving games segment...

  • Page 45
    ... 2006 and March 31, 2007 is taken from the consolidated financial statements and presented in accordance with IFRS standards. 03.31.07 In Kâ,¬ Sales Operating result Financial Result Share in earnings of associates Income tax expense Net earnings (Group share) Equity Investment related to production...

  • Page 46
    ... from operating activities Consolidated net income +/- Share in earnings of associates +/- Depreciation of game software +/- Other depreciation +/- Provisions +/- Cost of share-based payments +/- Capital gains or losses +/- Other income and expenses +/- Internal development and license development...

  • Page 47
    ...Sales (in Mâ,¬) First quarter Second quarter Third quarter Fourth quarter Total fiscal year At current rates, sales increased by 24% over FY 2006/2007; at constant rates, growth was 27%. 1.2.3 Breakdown of sales by activity and supervises production in exchange for acquiring the license. Ubisoft...

  • Page 48
    ...: CD-ROM PC Number of titles* Development In-house production Co-production Publishing Distribution Total 2006-2007 24 14 10 29 4 57 2005-2006 2004-2005 19 10 9 18 2 39 27 14 13 9 1 37 Xbox 360™ Nintendo Wii™ PlayStation®3 PlayStation®2 DS™ PSP™ Game Boy® Advance™ Xbox ® G-CUBE...

  • Page 49
    ...) and short-term lines of credit to finance its cash requirements at peak times. 1.3 Cash assets and capital Changes in equity With â,¬522 million in equity, up by â,¬141 million, Ubisoft easily finances its game investments, which total â,¬226 million. In FY 2006/2007, this equity again increased...

  • Page 50
    ...93 million in short-term lines. 1.4 Human resources Ubisoft key figures at March 31, 2007 3,934 employees (average staff during the year: 3,734), nearly a 15% increase since March 31, 2006. Ubisoft employees in 22 countries. 81% in production activities and 19% in business activities. An average...

  • Page 51
    ...game designers and product managers, all of whom are united through their passion and shared objectives; Ubisoft's teams work in 22 countries, which means that the group boasts at least as many different nationalities. Since video games are products that continue to appeal primarily to men, it makes...

  • Page 52
    ... Canada, there are currently 117 expatriates working around the world. 15 production sites enables it to build talented teams by attracting the most qualified people from around the world. To support this growth, Ubisoft acquired the Reflections Interactive Ltd studio in the UK and opened a studio...

  • Page 53
    ...the teams at the Montreal studio; In terms of human resource management, Ubisoft continues to implement tools and programs firmly aimed at developing and motivating its teams. According to the latest in-house survey, nearly 90% of the group's employees feel that Ubisoft is a good company to work for...

  • Page 54
    ...- 1.5 Social service activities Shortly thereafter, Ubisoft's French subsidiary identified another opportunity to support UNICEF in conjunction with the launch of a new product line - Rêves de filles. Designed for girls aged 8 to 12, this line is composed of video games that promote values such...

  • Page 55
    THE GROUP'S ACTIVITY AND RESUL TS FOR FISCAL YEAR 2006-2007 1 43 donating equipment to charitable organizations or selling it to wholesalers or employees instead of discarding it. Our Ubisoft Divertissements subsidiary gives some of its used equipment to a social services company that works in the...

  • Page 56
    ...Ubisoft Pictures SAS Ubisoft Graphics SAS Ubisoft Divertissements Inc Shanghai Ubi Computer Software Co.Ltd Ubisoft SARL Ubisoft Music Publishing Inc Ubisoft Productions France SAS Ubisoft Studios SRL Ubi Studios SL Ubisoft SRL Ubisoft Music Inc Red Storm Entertainment Inc (1) Blue Byte GmbH Ubisoft...

  • Page 57
    ... of Reflections Interactive Ltd's assets and entire development studio staff. - Creation of the following French companies: April 2006: Ubisoft Editorial SARL and Ubisoft Production Montpellier SARL, May 2006: Ubisoft Support Studios SARL and Ubisoft Production Annecy SARL, July 2006: Ubisoft Paris...

  • Page 58
    ... required in terms of time, human resources and the game's overall financing. Thanks to its in-house team of engineers, who have a solid grasp of the best technology currently available, Ubisoft now has a highly pragmatic approach to its projects. Depending on the problems involved in a game and the...

  • Page 59
    ... adequate financial resources. For Ubisoft, this period has been a real opportunity to expand its market share in new consoles and to penetrate market segments in which the group was not yet present. Ubisoft has a first-rate design staff operating in development studios in Canada, China and Romania...

  • Page 60
    UBISOFT • FINANCIAL REPORT 2007 1.9.3 Risk related to a top game being delayed or getting off to a poor start Cegep de Matane and the University of Sherbrooke, which offers a series of vocational and university-level training programs in key aspects of video game development, saw its number of ...

  • Page 61
    ... technology and licensing or maintenance services as part of their business. In addition, despite the fact that 67% of the company's sales are generated by games developed in-house, the company also makes regular use of the services of outside studios. These studios can either carry out projects...

  • Page 62
    ...equity investments. Long-term strategic investments in sectors related to video games, such as the investment in Gameloft SA, in which Ubisoft owns 13,367,923 shares, i.e. 18.89% of capital. This investment is valued at â,¬34 million on the company's consolidated balance sheet, while the fair market...

  • Page 63
    ... in France and abroad. This contract covers all employees of French sites who require assistance and foreign repatriation. The group's business operations do not in themselves pose an exceptional risk with regard to work-related accidents. Certain companies, particularly those in the US, the UK...

  • Page 64
    ... an active player in technology through the purchase of Demonware, a company that specializes in middleware for PC and consoles, with a focus on online applications. May 2007 Ubisoft develops the video game adapted from "Beowulf", a film by Paramount Pictures, Shangri-La Entertainment and Warner...

  • Page 65
    ...information 2.5.6.2 Business combinations 2.5.6.3 Transactions with related parties 2.5.6.4 Off-balance-sheet commitments 2.5.7 Employees 2.5.8 Potential assets and liabilities 2.5.9 Events after closing of accounts 2.6 Report for the consolidated account statements for the fiscal year ending March...

  • Page 66
    ... assets Current income tax assets Cash and cash equivalents Current assets Total assets LIABILITIES in thousands of euros Capital Additional paid-in capital Equity component Consolidated reserves Consolidated earnings Equity (group share) Minority interests Total equity Provisions Employee benefits...

  • Page 67
    ...borrowings costs Financial income Financial expenses Financial result Share in earnings of associates Income tax expense Profit for the year Attributable to minority interests share Group Net earnings per share Net earnings per share following the 2-for-1 stock split on December 11, 2006 Diluted net...

  • Page 68
    ... related to the end of convertible bonds Position at March 31, 2006 Allocation of consolidated earnings N-1 Fiscal year earnings(Group share) Tax on items recorded directly as equity or transferred directly from equity Income/expense from the depreciation and sale of own shares Profit (loss...

  • Page 69
    CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2007 2 57 Consolidated reserves Translation reserves Fiscal year earnings Total equity Group share 317,635 11,932 -174 -87 101 358 27 Minority interests Total equity 32,453 24,732 -174 -87 101 358 27 225 -416 -37,813 24,732 -24,732 11,932 ...

  • Page 70
    ... flow from operating activities - interest paid - income tax paid Net cash flow from operating activities Cash flow from investment activities - Purchases of tangible and intangible assets + Sales of tangible and intangible assets - Purchases of financial assets +/- Other flow related to investment...

  • Page 71
    ... property and technology rights to the Driver® franchise, as well as most of the assets and all of the staff of the Reflections Interactive Ltd development studio for US$ 24 million. 2-for-1 stock split On December 11, 2006, 2-for-1 stock split of Ubisoft Entertainment SA shares from â,¬0.31...

  • Page 72
    ... controlled by Ubisoft Entertainment SA. Control exists when the company has the power to manage, either directly or indirectly, the entity's financial and operational policies in order to obtain benefits from its activities. To assess control, potential voting rights that are currently exercisable...

  • Page 73
    ... to the "Released software programs" or "External developments" accounts. Other intangible assets are amortized over their expected useful life: office software: amortized over 1 year (straight-line), ERP-related expenditures: amortized over 5 years (straight-line), commercial software: amortized...

  • Page 74
    ... the value of probable discounted future benefits of each employee at the time of his/her retirement. The assumptions used as of March 31, 2007 are as follows: • Derivative instruments In order to limit the Group's foreign exchange risk, Ubisoft Entertainment SA uses forward sales contracts...

  • Page 75
    ... the straight-line method is not used, in accordance with the vesting terms defined in Ubisoft's plan rules; group savings plan: the accounting expense is equal to the discount granted to employees, i.e., the difference between the share subscription price and the share price at the grant date. This...

  • Page 76
    ... ordinary outstanding shares, less directly own shares, plus the number of shares that would be created as a result of the conversion of convertible instruments into shares and the exercise of rights. Net result at March 31, 2007: Dividends paid to shareholders: After tax financial costs relating to...

  • Page 77
    ... UBISOFT ENTERTAINMENT SA Korea GAMELOFT SA France TIWAK SAS France BLUE BYTE GmbH Germany UBISOFT DEVELOPMENT SARL France UBISOFT EDITORIAL SARL France UBISOFT SUPPORT STUDIOS SARL France UBISOFT PRODUCTION MONTPELLIER SARL France UBISOFT PRODUCTION ANNECY SARL France UBISOFT PARIS STUDIO SARL...

  • Page 78
    ...435 3 10,103 2,294 442 1,270 1,819 77,487 Ubisoft Inc. Ubisoft Ltd Ubisoft GmbH Red Storm Entertainment Inc. Ubisoft Spa Ubisoft Canada Inc. Tiwak SAS Ubisoft Divertissements Inc. Blue Byte GmbH Ubisoft France SAS Ubisoft BV Ubisoft Warenhandels GmbH Ubi Games SA Ubisoft Entertainment Ltd (1) Total

  • Page 79
    ... Software Inc. Red Storm Entertainment Inc. Distribution in the USA Ubisoft SpA Ubisoft Canada Inc. Tiwak SAS Ubisoft Divertissements Inc. Blue Byte GmbH Ubisoft France SAS Ubisoft BV Ubisoft Warenhandels GmbH Ubi Games SA Ubisoft Entertainment Ltd (1) Total (1) Cf. details in Note 2.5.6.2 Business...

  • Page 80
    ... group's companies did not result in the recording of any provisions. (2) Acquisition of the Far Cry® trademark for â,¬7.5 million and the Driver® trademark for â,¬14 million. Amortization Released commercial software External commercial software Office software Leased office software Other Total...

  • Page 81
    ... of share capital increase Gameloft SA's contribution to Ubisoft Entertainment SA's earnings was â,¬3,149 thousand as of March 31, 2007. General information concerning Gameloft SA related to the accounts closed at December 31, 2006: in thousands of euros Total assets/liabilities Sales Net income 12...

  • Page 82
    ... income tax assets are recognized if their recovery is probable, particularly when taxable profit is Activated/non-activated losses: in thousands of euros Activated losses Ubisoft Entertainment SA Ubisoft EMEA SAS Ubisoft World Studios SAS Ubisoft Warenhandels GmbH Red Storm Entertainment Inc...

  • Page 83
    ... financial assets Current financial assets break down as follows: 03.31.07 Net Derivatives on exchange rate transactions Equity Swap contract Total (1) (2) 182 19,001 19,183 03.31.06 Net 228 93 321 In order to limit the group's foreign exchange risk, Ubisoft Entertainment SA uses forward sales...

  • Page 84
    ..., 2008. On that date, Calyon will be able to sell its 1,436,274 Ubisoft Entertainment SA shares. The equity swap contract is recognized at its fair value on the balance sheet and changes in fair value are recorded on the income statement. The change in value recorded on the income statement is â,¬25...

  • Page 85
    ... this right was enjoyed. Number of Ubisoft Entertainment SA shares As of 04.01.06 Exercice of options Conversions of OBSAR Conversions of OCEANE Exercise of subscription warrants Group/company savings plan/ Equity issue Reserved share capital increase Subtotal (before 2-for-1 stock split*) Subtotal...

  • Page 86
    ... 1, 2006 doubled and the price of the options was reduced by one-half. The average price of options exercised during the period was â,¬7.61. The impact of share-based payments on the accounts was as follows: 03.31.07 Wages and social security costs Stock options Group Savings Plan USA Savings Plan...

  • Page 87
    ...Write-backs (provision not used) Exchange rate differences - 101 - 101 As of 03.31.07 Provisions for litigation Provisions for tax risk Total Impact Current operating result Financial result 4 4 2,053 2,053 2,053 - 1,952 1,952 Ubisoft Divertissements Inc (Canada) received a notification project...

  • Page 88
    ... interest rate and exchange rate risks resulting from the financing needs of its activities, the group uses certain financial instruments: Covenants Under the terms of the syndicated loan and bilateral line for â,¬20 million, the company is required to respect certain financial ratios (known as...

  • Page 89
    ... are used to finance temporary cash requirements generated by changes in working capital requirements. They may be offset with existing liquid assets at other group companies as part of a notional cash pooling system. The financial position improved by â,¬120,316 thousand over the fiscal year. The...

  • Page 90
    UBISOFT • FINANCIAL REPORT 2007 Chief characteristics of the OBSAR (bonds with redeemable share subscription warrants): At its meeting of November 3, 2003, the Board of Directors used the authorization granted by the Combined General Meeting of September 12, 2002 to issue OBSAR bonds (bonds with ...

  • Page 91
    ... Notes to the income statement Note 19 Sales The group had â,¬680 million in sales during the 2006/2007 fiscal year. At current exchange rates, sales increased by 24.4% over the 2005/2006 fiscal year; at constant exchange rates, growth in sales was 27.2%. The breakdown of sales by activity is as...

  • Page 92
    ... • FINANCIAL REPORT 2007 Note 20 Other operating income Other operating income breaks down as follows: 03.31.07 Capitalized commercial software production costs Capitalized production costs on other software Write-back of provisions Litigation Doubtful debts Intangible assets Other income Total...

  • Page 93
    ...assets Released software programs External developments Provisions for trade receivables Provisions for sundry current assets Provisions for risks and charges Provision for retirement benefit costs Total 460 2,053 55 2,568 03.31.06 77,755 69,293 8,462 1,266 419 79,440 Note 24 Other operating income...

  • Page 94
    ... or investments to manage the time lags. Amounts that cannot be offset are hedged by forward sales contracts and option contracts (for contract details, cf. section 2.5.4 Notes to the balance sheet - Note 10. Current financial assets). Note 27 Income tax expense Income tax expense breaks down as...

  • Page 95
    ... GW, tax and profit/loss of associates Theoretical tax (33.33%) Adjustments of deferred taxes from previous fiscal years: Variance between the accounting records and tax returns Effect of permanent differences between company earnings and consolidated earnings: IFRS2 wage complement Cancellation of...

  • Page 96
    ...subsidiaries and reinvoiced at their acquisition cost. (2) The parent company, like Ubisoft EMEA SAS, invoices subsidiaries for a contribution in the form of royalties that serve to support development costs (depreciation of games, internal and external development, royalties) and head office costs.

  • Page 97
    ...-in capital Equity component Consolidated reserves Consolidated earnings Equity (group share) Minority interests Total equity Provisions Employee benefits Borrowings Deferred tax liabilities Non-current liabilities Borrowings Trade creditors and related accounts payables Sundry creditors Financial...

  • Page 98
    ... technology rights to Driver®, as well as most of the assets and all of the staff of the Reflections Interactive Ltd studio for an acquisition price of US$ 24 million. The net assets acquired and goodwill are detailed below: 03.31.07 Amount paid in cash Direct costs related to the acquisition Total...

  • Page 99
    ... its corporate officers related to their termination or change in employment, such as in the event of a takeover bid. No loans or advances were made to the company's managers as provided by Article L225-43 of the French Commercial Code. The members of the Board of Directors did not receive any stock...

  • Page 100
    ... has been handed down in Ubisoft Entertainment SA favor. The total amount will be known in the next few months. 2.5.9 Events after closing of accounts 4. Other commitments Future guarantee payments Various products are marketed under licensing contracts signed by the group. At March 31, 2007, the...

  • Page 101
    ... statements give a true and fair view of the assets, financial position and results of the group comprising the consolidated persons and entities. II - Basis for assessment Pursuant to the provisions of Article L. 823-9 of the French Commercial Code regarding the basis for assessment, we call your...

  • Page 102
    UBISOFT • FINANCIAL REPORT 2007 III - Specific verification We have also verified, in accordance with accepted professional standards in France, the information provided in the report concerning the group's management. We have no comments regarding the accuracy of this information and its ...

  • Page 103
    CORPORATE ACCOUNTS OF UBISOFT ENTERTAINMENT SA AS OF MARCH 31, 2007 3 91 3 Corporate accounts of Ubisoft Entertainment SA as of March 31, 2007 3.1 3.2 3.3 3.4 3.5 3.5.1 3.5.2 3.5.3 3.5.4 3.5.5 3.5.6 3.5.7 Ubisoft Entertainment SA balance sheet Ubisoft Entertainment SA income statement Corporate ...

  • Page 104
    ... assets Business assets Tangible assets Financial assets Fixed assets Advances and installments paid Trade receivables Other receivables Investment securities Cash Current assets Bond redemption premium Adjustment accounts Total assets 1 Liabilities Capital Premiums Reserves Income for Fiscal Year...

  • Page 105
    ... and external charges Tax and duty Wages and social security costs Other expenses Depreciation and provisions Total operating expenses Operating result Financial income from equity holdings Income from other securities and claims on fixed assets Other interest and related income (1) Write-back of...

  • Page 106
    ... by bond conversion 1,012 105,356 106,368 2006/07 earnings Balance as of 03/31/2007 In thousands of â,¬ Capital Issue premium Legal reserve Regulatory reserves Other reserves Profit and loss account reserve brought forward Net earnings for Fiscal Year Total 6,025 315,419 505 6,394 - 593 - 12,813...

  • Page 107
    ... issue premium of share subscription warrants Increase in issue premium on group savings plan Increase in bond redemption premium Variation in current accounts Total cash flow from financial transactions Net change in cash flow Net cash position at the beginning of the fiscal year Net cash position...

  • Page 108
    ... 5, 2006, the Board of Directors decided to carry out a 2-for-1 split of Ubisoft's share effective December 11, 2006. - Share capital increases: In February 2007, Ubisoft Entertainment SA increased its equity ownership of Ubi Games SA through the capitalization of the current account totaling CHF...

  • Page 109
    ... 10 years (straight-line), 3 years (straight-line), 10 years (straight-line). Foreign exchange hedges Since hedges are not allocated to specific transactions, Ubisoft Entertainment SA has chosen not to use hedge accounting to hedge its foreign exchange risk. Financial assets Securities are valued...

  • Page 110
    ... FINANCIAL REPORT 2007 3.5.6 Notes to the balance sheet Intangible assets Note 1. Intangible assets break down as follows: Fixed assets Released commercial software External commercial software Software programs in progress ERP Production licenses Other intangible assets in progress Other Total...

  • Page 111
    ... company Book value at 03/31/07 (â,¬) Number of shares held by Ubisoft Entertainment SA Value of one share at 03/31/07 (â,¬) Balance sheet date Write-back over fiscal year Depreciation over fiscal year Gameloft SA 27,343,883 13,367,923 5.03 December 31 - Provisions Equity holdings Own shares Total...

  • Page 112
    ... Trade creditors and related accounts Tax and social security liabilities Other debts Debts on fixed assets Deferred income Total Bank loans taken out during the year Buy-back of OCEANE convertible bonds during the year Bank loans repaid during the year Amount of current account debts contracted...

  • Page 113
    ... Total borrowings and financial debts Trade payables, invoices pending Credit notes to be issued Tax and social security liabilities Total 265 265 19,367 13,137 750 33,519 03/31/2006 807 282 1,089 12,611 8,951 605 23,256 Note 12. Items relating to affiliated companies 03/31/2007 Current assets...

  • Page 114
    ....78. Number of Ubisoft Entertainment SA shares As of 01/04/06 Exercise of options Conversions of OBSAR Conversions of OCEANE Exercise of subscription warrants Group/company savings plan/ Equity issue reserved Subtotal (before 2-for-1 stock split*) Subtotal (after 2-for-1 stock split*) Exercise of...

  • Page 115
    ... the record, the exercise conditions of the stock option plans are as follows: 5th Plan Total number of shares allotted (**) Start date for exercising options Expiration date for options Option price (**) Options at 04/01/2006 (**) Options exercised during the fiscal year Options canceled during the...

  • Page 116
    ...per bond. Characteristics of the BSAR (redeemable share subscription warrants): Number of BSAR: Parity: Strike price: Exercise period: 1,433,492 BSAR (two BSAR are attached to each bond). One BSAR entitles its holder to subscribe for one new share with a face value of â,¬0.31. â,¬38.35 The BSAR may...

  • Page 117
    ... margin calls on the equity swap contract (cf. Note 2.6.2 Off-balance-sheet commitments). Note 17. Accrued expenses (adjustments accounts) As of 03/31/2006 Cumulative Unearned income* Exchange conversion adjustments to liabilities Total (*) Corresponds to deferred sales Increases 61 61 Decreases...

  • Page 118
    UBISOFT • FINANCIAL REPORT 2007 Note 19. Other operating income and transfers of expenditures 03/31/2007 Write-back of depreciation and provisions Transfer of expenditures Other current operating income Total 113 15,779 1,331 17,223 03/31/2006 265 13,097 133 13,495 Transfers of expenditures ...

  • Page 119
    .../2006 Financial income from equity interests mainly include dividends received by Ubisoft Entertainment SA during the fiscal year. They break down as follows: - Ubisoft EMEA SAS: - Other subsidiaries: â,¬25,000 thousand. â,¬618 thousand. Foreign exchange risk In order to limit the group's foreign...

  • Page 120
    UBISOFT • FINANCIAL REPORT 2007 Note 25. Corporate tax As of March 31, 2007, the following companies belonged to the tax group: - Ubisoft Entertainment SA (head of the group) - Ubisoft France SAS - Ludi Factory SAS - Ubisoft Graphics SAS - Ubisoft EMEA SAS - Ubisoft Books and Records SAS - ...

  • Page 121
    ... its corporate officers related to their termination or change in employment, such as in the event of a takeover bid. No loans or advances were made to the company's managers as provided by Article L225-43 of the French Commercial Code. The members of the Board of Directors did not receive any stock...

  • Page 122
    ...SAS UBISOFT GMBH UBISOFT DIVERTISSEMENTS INC. Total Currency OTHER SUBSIDIARIES French subsidiaries Foreign subsidiaries Subtotal EQUITY INTERESTS BETWEEN 10 AND 50% OF CAPITAL HELD Equity interests in French companies Subtotal GRAND TOTAL Euro Euro Euro United States France France Germany US dollar...

  • Page 123
    CORPORATE ACCOUNTS OF UBISOFT ENTERTAINMENT SA AS OF MARCH 31, 2007 3 111 Book value of securities held in thousands of euros gross net Loans and advances granted by the company and not yet repaid In thousands of currency units Sales excluding tax In thousands of currency units Net income for ...

  • Page 124
    ... annual financial statements give a true and fair view of the results obtained for the fiscal year in question and of the company's financial position and assets at the end of this year. II - Basis for assessment Pursuant to the provisions of Article L. 823-9 of the French Commercial Code regarding...

  • Page 125
    ... of this information with the annual financial statements. • the accuracy of the information provided in the management report regarding the compensation and benefits paid to the corporate officers in question and the commitments made in their favor at the time of the assumption, termination or...

  • Page 126
    ... located at Chertsey Gate, East London Street, Chertsey, Surrey, England, and the construction permit related to said premises. Terms: The surety bond issued by your company totaled â,¬3,160,791 at March 31, 2007. 2) Authorization related to commitments made by Ubisoft Entertainment SA for Ubisoft...

  • Page 127
    ... in force during the past fiscal year. 1) Brand licensing agreement with Gameloft SA Nature and purpose: Your company signed an exclusive licensing agreement for current and future brands with Gameloft S.A. for the development of interactive video games for telephone, fax and telecommunications...

  • Page 128
    UBISOFT • FINANCIAL REPORT 2007

  • Page 129
    ... number of outstanding shares on the start and end dates of the fiscal year 4.2.2.3 Share buyback program 4.2.2.4 Authorized unissued capital 4.2.2.5 Convertible securities, exchangeable securities and securities with share subscription warrants...4.2.2.6 Share subscription warrants 4.2.2.7 Employee...

  • Page 130
    ...; - the marketing and management of all data processing and word or text processing computer programs; - consulting, support and training related to any of the above areas; 4.2.1 4.2.1.1 Corporate purpose (Article 3 of the Articles of Association) Ubisoft Entertainment SA's purpose in France and...

  • Page 131
    ...of receipt sent to its registered office and within the period stipulated in Article L. 233-7 of the French Commercial Code, of the total number of shares, voting rights and securities granting future access to the company's capital that said shareholder holds directly, indirectly or in concert. The...

  • Page 132
    ... by Articles L. 443-1 & seq. of the French Labor Code, or (iii) any stock option plan for the benefit of some or all employees or corporate officers. * On December 5, 2006, the Board of Directors of Ubisoft decided to make a 2-for-1 split in the nominal value of a Ubisoft share with effect...

  • Page 133
    ...to grant September 25, 2006 employees options giving a right Resolution 10 to new shares and/or stock options Delegation of authority to the Board of Directors to proceed with an equity issue reserved for September 25, 2006 employees of company Resolution 11 subsidiaries headquartered outside France...

  • Page 134
    ... in financial year Authorization granted to the Board of Directors to issue shares to employees in connection with the company savings scheme Authorization granted to the Board of Directors to grant employees options giving a right to new shares and/or stock options September 25, 2006 Resolution...

  • Page 135
    ...or the subscription of new shares of May 14, 2003: Initial number of warrants: Strike price: Term: 17,540,082 (15 BSA entitle the holder to one share). â,¬28. May 14, 2002 to May 14, 2006, inclusive. Warrants exercised during the fiscal year ended on March 31, 2007: The closing date for exercise of...

  • Page 136
    UBISOFT • FINANCIAL REPORT 2007 4.2.2.6 Meeting date Share subscription warrants Plan number Date of Board of Directors' meeting Total number of options granted (1) 641,852 89,210 778,130 No. of options granted to corporate officers 0 0 0 Start date for exercising options 09.13.00 10.19.01 10....

  • Page 137
    ... an equity issue reserved for French employees, up to a limit of 1% of the total shares comprising the share capital at the time of use of the authorization by the Board of Directors, specifically by means of an FCPE. The Board of Directors did not use this authorization during the financial year...

  • Page 138
    ...the company's capital over the last three fiscal years Date Type of operation Number of shares issued Amount of equity issue by cash contribution Issue premium Share face value Total number of shares Total share capital Before the 2-for-1 split with effect from December 11, 2006 (Board of Directors...

  • Page 139
    ...12 Market in which the company's stock is traded Ubisoft share fact sheet ISIN code Listing market Par value Number of outstanding shares as of 03/31/07 Closing price as of 03/31/07 Market capitalization as of 03/31/07 Initial listing price on July 1, 1996 FR0000054470 Euronext - Paris - Eurolist...

  • Page 140
    ...,089,80 Capital Number of shares Guillemot Brothers SA Claude Guillemot Yves Guillemot Michel Guillemot Gérard Guillemot Christian Guillemot Other members of the Guillemot family Guillemot Corporation SA Guillemot Suisse SA In Concert Ubisoft Entertainment SA Public and Group employees Total As of...

  • Page 141
    ... on market conditions, make further acquisitions or sell shares in Ubisoft Entertainment SA. FMR Corp and Fidelity International Limited (FIL) do not intend to acquire shares or voting rights in Ubisoft Entertainment SA in order to take control thereof or be represented on its Board of Directors...

  • Page 142
    ... the sale of shares, and as of that date held 8.474% of the capital and 11.989% of the voting rights; - on April 17, 2007, following the repayment in Ubisoft Entertainment shares of the debt to it on the books of Guillemot corporation, exceeded the 12% threshold in the Articles for voting rights and...

  • Page 143
    ... of managers Compensation of managers and members of the Board of Directors Stock option and share subscription plan 140 140 140 5.8 5.9 Services contract with the issuer and its subsidiaries Operations referred to in Article L621-18-2 of the French Monetary and Financial Code and Article 222...

  • Page 144
    UBISOFT • FINANCIAL REPORT 2007 5.1 Name Job title 1 Members of the group's Board of Directors and management Date of birth Date of hiring Expiration date of Ordinary Meeting closing books 03.31. 2013 3 Number of shares as of 03.31.07 404,608 07.21. 1960 02.28.1988 Yves Guillemot Director Chief...

  • Page 145
    ...represent the company's Board of Directors, organize its work and report 5.4 Absence of fraud conviction, association with a bankruptcy or public incrimination and/or sanction To the company's knowledge, over the last five years: none of the members of the Board of Directors has been convicted of...

  • Page 146
    ... SARL Paris Studios SARL Support Studios SARL Castelnau SARL Marketing International SARL Director Ubisoft Entertainment Ltd Red Storm Entertainment Ltd Guillemot Ltd Advanced Mobile Applications Ltd Hong Kong President and Director - Ubisoft Ltd Germany/Austria Manager - Ubisoft GmbH - Blue Byte...

  • Page 147
    ...Ltd Guillemot Ltd Gameloft Ltd Ubisoft Entertainment Ltd President - Ubisoft Norway AS - Ubisoft Finland OY Director - Ubisoft Sweden AB hong kong Director - Guillemot Corporation (HK) Ltd - Ubisoft Ltd Switzerland President - UBI Games SA italy Director - Guillemot Srl Claude Guillemot france...

  • Page 148
    ...FINANCIAL REPORT 2007 Director - Shanghaï Ubi Computer Software Company Ltd - Ubi Computer Software Beijing Company Ltd vietnam President and Director - Gameloft Company Ltd Hong Kong Director - Ubisoft Ltd Gérard Guillemot france Director - Gameloft SA Korea President and Director - Gameloft...

  • Page 149
    ... Games Inc Guillemot Online.com Inc Ludiwap Inc CEO and Director - Euroland Finance - TFJ 5.6.2 Expired terms (last five fiscal years) Great Britain Director - Blue Byte Software Ltd - Ubi Studios Ltd Yves Guillemot france President and Director - Ubi.com SA Claude Guillemot france President...

  • Page 150
    UBISOFT • FINANCIAL REPORT 2007 Director and CEO - Ludigames SA United States President - Ludiwap Inc Director Ubi Soft France SA Ludimédia SA Ubi Studios SA Ubi World SA Director - Guillemot Online.com Inc - Hercules Technologies Inc - Thrustmaster Inc Manager - Guillemot Support Technique ...

  • Page 151
    ... - Ubisoft Canada Inc - Ubisoft Music Inc italy Director - Ubisoft SpA china Director - Guillemot Logistics Ltd sweden President - Gameloft.com AB spain Director - Gameloft.com Espana Christian Guillemot france Director and Executive Vice President - Guillemot France SA United States Director...

  • Page 152
    ... to the company's managers as provided by Article L225-43 of the French Commercial Code. 5.7.2 Stock option and share subscription plan The members of the Board of Directors did not receive any stock options or share subscriptions during the fiscal year just ended. 5.8 Services contract with...

  • Page 153
    ...000 BSA) Subscription (exercise of 2 800 BSA) Subscription (exercise of 12 000 BSA) Subscription (exercise of 100 005 BSA) Sale Sale Sale Sale Sale Sale 1 Mrs Yvette Guillemot resigned as a Director on June 23, 2006 2 Operations achieved before the 2-for-1 stock split (Board of directors' meeting on...

  • Page 154
    UBISOFT • FINANCIAL REPORT 2007

  • Page 155
    ...the powers of the Chief Executive Officer 150 Auditor's report, prepared pursuant to Article L. 225-235 of the French Commercial Code, on the report of the Chairman of the Board of Directors of Ubisoft Entertainment S.A. concerning the internal audit procedures used to prepare and process accounting...

  • Page 156
    .... The Board of Directors also decided, as of said date, to use only 72% of the total budget allowance established by the General Meeting. In case of departure the corporate managers don't receive any compensation or advantage. 6.1.3 Powers of the Board The functions of the Board of Directors are...

  • Page 157
    ... of the group's general management by the Internal Audit Department and other support departments. Ubisoft has adopted the definition of internal control contained in the AFEP/MEDEF report on corporate governance in France. According to this definition, the objective of internal control is to...

  • Page 158
    ... of internal control The Ubisoft group is made up of 25 French companies and 32 foreign companies, broken down as follows: 20 distribution companies, 28 production companies, seven support companies, one mobile phone company and one digital animation company. Major strategies and objectives are...

  • Page 159
    ... of stock options, enrollment in the group savings plan, training programs and so on. Each year, the international HR departments collect data on a number of indicators (training programs, staff, etc.) from the subsidiaries in order to measure progress made in the area of human resources and...

  • Page 160
    ... product release dates. This plan is reviewed monthly based on the latest information made available by the market and staff. Shared and published documentation In terms of internal control, the group uses a formalized documentation system that can be accessed by all the group's employees...

  • Page 161
    ... of the group's general management, which are attended by the Administrative, Finance and Financial Control departments, among others, are held to review the various reporting indicators, analyze discrepancies between the actual accounts and initial forecasts, and finetune the half-yearly and annual...

  • Page 162
    .... The group's goal is to develop a dynamic approach to risk and control analysis in order to offer managers effective management tools. The objective is therefore to reevaluate risk analysis each year based on changes in the industry and the company's strategy. 6.4 Limitations on the powers of the...

  • Page 163
    ... BOARD OF DIRECTORS 6 151 6.5 Auditor's report prepared pursuant to Article L. 225-235 of the French Commercial Code, on the report of the Chairman of the Board of Directors of Ubisoft Entertainment S.A. concerning the internal audit procedures used to prepare and process accounting and financial...

  • Page 164
    UBISOFT • FINANCIAL REPORT 2007

  • Page 165
    ... SUBJECTED TO THE VOTE OF THE COMBINED GENERAL MEETING ON JUL Y 4, 2007 7 153 7 TEXT FOR DRAFT RESOLUTIONS SUBJECTED TO THE VOTE OF THE COMBINED GENERAL MEETING ON JUL Y 4, 2007 7.1 7.2 Resolutions under the authority of the ordinary general meeting Resolutions under the authority of the...

  • Page 166
    ... for Ordinary General Meetings and having read the Board of Directors' management report and the statutory auditors' report, approves the corporate accounts for the fiscal year ended March 31, 2007, as presented (including the balance sheet, income statement and appendix), showing a profit of â,¬16...

  • Page 167
    ...of any company gainsharing plan, employee savings plan, bonus issue of shares or stock option plan for the benefit of some or all of the group's employees or corporate officers; - the retention of shares for delivery at a later date in exchange or as payment for future external growth operations, up...

  • Page 168
    ... provided by law, of the shares acquired to the various desired objectives. The General Meeting grants all powers to the Board of Directors, with the right of delegation under the conditions provided by law, to place any stock exchange or offmarket orders, sign any agreements, prepare any documents...

  • Page 169
    ..., the listing of the shares created, the servicing of the new shares and the exercise of rights attached thereto; where applicable, to define their buyback terms on the stock exchange; in general, to take any necessary action and to sign any agreements needed to successfully complete said issues...

  • Page 170
    ...share capital in payment of securities contributed to a takeover bid initiated by the company, pursuant to Article L. 225-148 of the French Commercial Code, involving the exchange of company stock for the securities of another company listed on one of the stock exchanges referred to in said Article...

  • Page 171
    ... the conditions set forth in Article L. 443-5 of the French Labor Code. 5°) Resolves to set the maximum discount offered under a savings plan at 15% of the average opening price of Ubisoft Entertainment S.A. stock on the Euronext Eurolist market during the 20 trading sessions preceding the day of...

  • Page 172
    ... report: 1°) Authorizes the Board of Directors, pursuant to Articles L. 225-177 et seq. of the French Commercial Code, to grant, on one or more occasions, to the staff members chosen by it from among the employees and officers of the company or of affiliated companies under the conditions set...

  • Page 173
    ... or new shares of the company to staff members or members of certain categories of staff of its choice from among the eligible employees and corporate officers of the company or affiliates, as provided by Article L. 225-197-2 of the French Commercial Code. 2°) Resolves that the Board of Directors...

  • Page 174
    ... (Delegation of authority to the Board of Directors to issue shares reserved for the employees and corporate officers of the company's subsidiaries, as provided by Article L. 233-16 of the French Commercial Code, that have their headquarters outside of France) The General Meeting, having met the...

  • Page 175
    ... Board of Directors' grant decision; - the issue(s) of ordinary shares or securities granting entitlement to the capital, without shareholders' preemptive rights, to employees and corporate officers of the company's subsidiaries, as provided by Article L. 233-16 of the French Commercial Code, that...

  • Page 176
    ...its headquarters within the period stipulated in Article L. 233-7 of the French Commercial Code, of the total number of shares, voting rights or securities granting future entitlement to the company's capital, whether said shareholder holds them directly or indirectly or in concert. The notification...

  • Page 177
    TEXT FOR DRAFT RESOLUTIONS SUBJECTED TO THE VOTE OF THE COMBINED GENERAL MEETING ON JUL Y 4, 2007 7 165

  • Page 178
    UBISOFT • FINANCIAL REPORT 2007

  • Page 179
    ... OF THE ACCOUNTS 8.1 8.2 8.3 8.4 8.5 Person responsible for the reference document Declaration of the person responsible for the reference document Names, addresses and professional fees of the auditors Documents available to the public Schedule of financial communications for fiscal year 2007/08...

  • Page 180
    ... the company's financial position and the accounts provided in this reference document, and that they have read the reference document in full." Chief Executive Officer, Yves Guillemot 8.3 Names, addresses and professional fees of the auditors Date of 1st appointment Expiration of current term...

  • Page 181
    ...and members of their networks (Document prepared in accordance with Article L. 222-8 of the internal regulations of the Autorité des marchés financiers - AMF) Fiscal years covered: April 1, 2005 to March 31, 2007 In thousands of euros Audit AMLD Amount (excluding tax) 2006-2007 2005-2006 2006-2007...

  • Page 182
    ... at the company's registered office or business address (28, rue Armand Carrel - 93100 Montreuil-sous-Bois, France). In addition, some of these documents are available on the company's website (www.ubisoftgroup.com), which also contains the group's press releases and financial information. This...

  • Page 183
    ... integration of the data into the driver etc.). Time to market: A video game is called "time to market" when its development cycle guarantee a profitable and precise release date (for example to coincide with a pictures' release or a sport event,...). Xbox360â„¢: Microsoft's Next Gen console. It was...

  • Page 184
    ... Company creation date and term Registered office, legal status, applicable legislation, original country, address and phone number Historical background Investments OVERVIEW OF OPERATIONS Main operations Main Markets Exceptional events influencing main operations and main markets Dependence related...

  • Page 185
    ... for employees in share capital KEY SHAREHOLDERS Distributions of capital and voting rights Different voting rights Control of the issuer Agreements that could lead to a change in control AGREEMENTS WITH RELATED PARTIES FINANCIAL INFORMATION REGARDING THE ISSUER'S ASSETS, FINANCIAL CONDITION, AND...

  • Page 186
    UBISOFT • FINANCIAL REPORT 2007

  • Page 187
    ... other countries. Ubisoft and the Ubisoft logo are trademarks of Ubisoft Entertainment in the US and/or other countries. Red Storm Entertainment Inc is a Ubisoft Entertainment company. Developed by Blue Byte Software. Rayman®. © 1995-2006 Ubisoft Entertainment. All Rights Reserved. Rayman, Rayman...

  • Page 188
    ...JAPAN CANADA 5505 boul Saint-Laurent Suite 5000 Montreal H2T 1S6, Quebec Tel: +1 (514) 490 2000 Fax: +1 (514) 490 0882 Édifice Ubisoft ...Center 1010 Huai Hai Middle Road, Shanghai 200031 Tel: +86 21 5407 5666 Fax: +86 21 5407 5156 Room 804, 8/F, Jubilee Centre 46 Gloucester Road Wanchai - Hong Kong...

  • Page 189
    ...JAPAN CANADA 5505 boul Saint-Laurent Suite 5000 Montreal H2T 1S6, Quebec Tel: +1 (514) 490 2000 Fax: +1 (514) 490 0882 Édifice Ubisoft ...Center 1010 Huai Hai Middle Road, Shanghai 200031 Tel: +86 21 5407 5666 Fax: +86 21 5407 5156 Room 804, 8/F, Jubilee Centre 46 Gloucester Road Wanchai - Hong Kong...