Ubisoft 2008 Annual Report Download - page 63

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61
UBISOFT ANNUAL REPORT 2009
ma n a G e m e n t r e p o r t 01
Operating income amounted to €113.5 million, compared with €131.5 million in 2007-08. In particular, it included €16.9 million of
share-based payments (€8.5 million in 2007-08) and €1.6 million of non-recurring gains. Operating income for 2007-08 included
a gain of €8.4 million from the positive outcome of a legal case.
Financial losses came to €4.8 million (compared with a post-adjustment nancial prot of €27 million in 2007-08). The breakdown
appears below:
• €0.3 million of nancial gains versus an expense of €1.9 million in 2007-08.
• €5.3 million of foreign exchange losses, versus a loss of €13.7 million in 2007-08.
• €8.8 million positive impact due to Calyon's sale of the last Ubisoft shares in the equity swap(1) contract. Financial income for
2007-08 included €28.0 million from this equity swap.
• 8.7 million of expenses linked to the depreciation of Gameloft shares, valued at €1.64 on the balance sheet rather than the
previous €2.73. For the record, in 2007-08 Ubisoft had recorded a prot of €14.6 million linked to Calyon’s sale of a portion of the
Gameloft shares (4.2 million out of a total 13.4 million).
Net income came to €68.8 million, giving (diluted (2)) earnings per share of €0.71. This compares with gures of €109.8 million
and €1.14 in 2007-08.
Excluding non-recurring items (Gameloft, equity swap, litigation and others) and before share-based payments, net income
amounted to €84.7 million, giving (diluted) earnings per share of €0.87, compared with gures of €80.6 million and €0.84 in
2007-08.
1.1.2.7 Change in the working capital requirement and debt levels
The working capital requirement rose €10.3 million after falling by €58.1 million the previous year. The main changes concern
inventory items, up €23 million, and trade payables, down €45.4 million due to increased activity on Nintendo products, which
have longer delivery times and shorter payment deadlines. The grants receivable line item increased by €10 million, while trade
receivables fell €19.7 million, partly due to less sustained activity over the fourth quarter. The nancial assets line item fell
€42.8 million, largely owing to the sale of Ubisoft shares previously included in the Calyon equity swap (€38.8 million).
There was a net nancial surplus (i.e. cash minus bank overdrafts) of €154.2 million at March 31, 2009. The change on the previous
sum of €149.5 million at March 31, 2008 can be explained by:
• cash ow from operating activities of €27.8 million,
• investment in property, plant and equipment and intangible assets of €26.9 million,
• acquisitions for a total of €10.3 million,
• capital increases of €12.4 million, resulting from the conversion of stock options and capital increases reserved for Group
employees,
• translation adjustments of €1.7 million.
(1) Transaction concluded with Calyon on September 30, 2003
(2) After two-for-one stock split on November 14, 2008