Ubisoft 2006 Annual Report Download - page 57

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THE GROUP'S ACTIVITY AND RESULTS FOR FISCAL YEAR 2006-2007
45
1
Equity interests
during the fiscal year
Creation of companies
- May 2006, creation of Ubisoft Entertainment Ltd (United
Kingdom), wholly-owned subsidiary of Ubisoft Ltd, follo-
wing the acquisition 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 Studio SARL and Ubisoft
Castelnau SARL,
January 2007: Ubisoft Marketing International SARL.
- June 2006, creation of Ubisoft EOOD (Bulgaria), wholly-
owned subsidiary of Ubisoft Entertainment SA.
- February 2007, creation of Ubisoft Digital Arts SA (Quebec),
wholly-owned subsidiary of Ubisoft Divertissements Inc.
Share capital increase
In February 2007, Ubisoft Entertainment SA increased its
equity ownership of Ubi Games SA through the capitaliza-
tion of the current account totaling CHF 2.5 million or
€1.5 million.
Liquidation
January 2007, liquidation of Ubi Computer Software
Beijing Company Ltd. (China). The impact of this liquida-
tion on equity is €170 thousand.
Activities of subsidiaries
Production subsidiaries
These subsidiaries are responsible for software design and
development. Their business has expanded substantially as
a result of the increasing number of projects completed in-
house and a larger workforce.
Marketing subsidiaries
These subsidiaries, which are responsible for distributing
Ubisoft products throughout the world, have experienced
significant growth in America as a result of the advance
release of new consoles.
Parent company-subsidiary relations
The existence of these subsidiaries involves:
billing of the parent company by the production subsidia-
ries for development costs based on the progress of their
projects. These costs are capitalized at the parent com-
pany and amortized starting on the date of the product’s
commercial release;
billing of the distribution subsidiaries by the parent com-
pany in order to contribute to the development costs.
The parent company also centralizes certain costs that it
later distributes to its subsidiaries, including for:
IT projects,
purchases of computer equipment,
overhead costs,
financial costs, current account interest and cash pooling
interest.
Main subsidiaries
* IFRS accounts.
1.7.2 1.7.3
Subsidiary Sales Operating
Net
Sales Operating
Net
Sales Operating
Net
(in K€)
result income result income result income
03.31.07 03.31.07 03.31.07 03.31.06 03.31.06 03.31.06 03.31.05 03.31.05 03.31.05
Ubisoft Inc. (United States) 287,402 8,631 6,541 227,601 7,480 3,810 207,959 6,878 3,888
Ubisoft Ltd (UK) 110,571 2,090 1,140 94,675 1,830 757 83,709 1,792 699
Ubisoft GmbH (Germany) 56,847 1,074 907 35,309 1,437 -170 53,601 2,407 625
Ubisoft France SAS* 64,129 1,212 1,399 48,499 826 876 51,809 979 885