Ubisoft 2007 Annual Report Download - page 113

Download and view the complete annual report

Please find page 113 of the 2007 Ubisoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 170

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170

CORPORATE FINANCIAL STATEMENTS OF UBISOFT ENTERTAINMENT SA AS OF MARCH 31, 2008
109
3
A €16,850 thousand capital gain was recognized in income
following the disposal of 4,189,198 shares during the half
year, reducing the number of shares to 9,178,725.
Measured at fair value, the remaining 9,178,725 shares
generated an unrealized capital loss of €30,749 thousand.
Authorizations
In order to finance temporary needs related to increases in
working capital during especially busy periods, the
Company has a €100 million syndicated loan, €30 million
in confirmed credit facilities and other bank credit facilities
totaling €76 million as of March 31, 2008.
Other commitments
Since all the personnel are officers, no retirement bene-
fits are owed.
Various products are marketed under licensing agree-
ments signed by Ubisoft Entertainment SA. The commit-
ments undertaken by the Company provide for the
payment of guaranteed minimum royalties. As of March
31, 2008, commitments made by virtue of this guaran-
teed minimum amounted to €80.3 million.
Ubisoft Entertainment SA has pledged to provide finan-
cial support to its subsidiaries to meet their cash require-
ments.
Compensation of
Company managers
Ubisoft Entertainment SA paid €546,000 in compensation
to its corporate officers during the 2007-2008 fiscal year.
In – only very partial – compensation for their work and the
time spent in preparing and actively participating in Board
meetings, the General Shareholders’ Meeting of
September 25, 2006 authorized the Company to pay direc-
tors’ fees totaling a maximum €250,000 per annum.
The members of the Board of Directors received €113
thousand in directors’ fees in respect of the fiscal year
ended March 31, 2008.
No obligation has been undertaken by the Company in
favor of its corporate officers related to their termination
or change in responsibilities.
No loans or advances were made to the Company’s ma-
nagers, in accordance with Article L225-43 of the French
Commercial Code.
Under the terms of the stock option plan approved by the
Board of Directors on April 26, 2007, it was decided to
grant Company officers 75,000 of the 1,577,400 stock
options granted (4.75%). The options may be exercised any
time between April 26, 2008 and April 25, 2012, inclusive,
at an exercise price of €35.29 per share. In accordance with
the provisions of the Act of December 30, 2006 establi-
shing new regulations governing options granted to corpo-
rate officers, the Board also decided to require all officers
to retain 5% of their options until such time as they have
given up their positions.
Contingent assets
and liabilities
To the best of our knowledge, as of March 31, 2008 there
were no contingent assets or liabilities.
Events after the
balance sheet date
Disposal of shares under the equity swap agreement
on Ubisoft stock
The 1,243,121 shares covered by the equity swap agree-
ment signed with Calyon were disposed of during April and
May. As of May 12, 2008, all the shares had been disposed
of at an average price of €61.68.
Incorporations
In April 2008, Ubisoft Entertainment SA opened two new
wholly-owned development studios in India and in the
Ukraine.
Syndicated loan
The Company did not exercise its option of renewing the
syndicated loan for an additional year. A new agreement
was signed in May 2008 for a €180 million five-year loan.
3.6.3
3.6.4
3.6.5