Ubisoft 2009 Annual Report Download - page 6

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1.1.5.3Businessactivitiesofthesubsidiaries....................................................................................................28
1.1.6Generalinformation........................................................................................................................................29
1.1.6.1Capitalexpenditurepolicy......................................................................................................................29
1.1.6.2Researchanddevelopmentpolicy.........................................................................................................29
1.1.6.3Property,plantandequipment..............................................................................................................29
1.1.7Riskfactors......................................................................................................................................................30
1.1.7.1Riskslinkedtothebusinessandthevideogamesmarket.....................................................................30
1.1.7.1.1Risksassociatedwithproductstrategy,positioningandbrandmanagement.................................30
1.1.7.1.2Risksassociatedwithmarketchanges..............................................................................................30
1.1.7.1.3Risksofadelayorpoorstarttothereleaseofaflagshipgame.......................................................31
1.1.7.1.4Risksassociatedwithrecruitingandretainingtalentedstaff...........................................................31
1.1.7.1.5Risksassociatedwiththeacquisitionandintegrationofnewentities.............................................32
1.1.7.2Legalrisks...............................................................................................................................................32
1.1.7.2.1Lawsuits–Legalproceedingsandarbitration...................................................................................32
1.1.7.2.2Regulatoryenvironment...................................................................................................................32
1.1.7.2.3Risksassociatedwithintellectualpropertyrights.............................................................................33
1.1.7.2.4Licensingagreementrisks.................................................................................................................33
1.1.7.3Operationalrisks.....................................................................................................................................33
1.1.7.3.1Riskofdependencyoncustomers....................................................................................................33
1.1.7.3.2Riskofdependencyonsuppliersandsubcontractors.......................................................................34
1.1.7.3.3Financialandaccountingrisks...........................................................................................................34
1.1.7.3.4Risksassociatedwithinformationsystemsandcomputersecurity.................................................34
1.1.7.4Marketrisks............................................................................................................................................35
1.1.7.5Industrialorenvironment‐relatedrisks..................................................................................................36
1.1.7.6Insuranceandriskcoverage...................................................................................................................37
1.1.8Commitments..................................................................................................................................................38
1.1.9Recentevents,outlookandstrategy..............................................................................................................38
1.1.9.1Recentdevelopments.............................................................................................................................38
1.1.9.2Marketoutlook.......................................................................................................................................38
1.2CommentsontheCorporateFinancialStatementsofUbisoftEntertainmentSAfortheyearendedMarch
31,2010................................................................................................................................................................39
1.3InformationabouttheCompany................................................................................................................41
1.3.1GeneralinformationabouttheCompany.......................................................................................................41
1.3.2AdditionalinformationabouttheCompany...................................................................................................42
1.3.2.1Incorporateddocumentsandarticlesofassociation.............................................................................42
1.3.2.1.1Corporatepurpose(Article3oftheArticlesofAssociation)............................................................42
1.3.2.1.2DistributionofearningsunderArticle17oftheArticlesofAssociation...........................................42
1.3.2.1.3GeneralMeetings(Article14oftheArticlesofAssociation)............................................................42
1.3.2.1.4Significantshareholdingdisclosurerequirement(Article6oftheArticlesofAssociation)..............43
1.3.2.1.5Rightsattachedtoshares(Articles7and8oftheArticlesofAssociation).......................................43
1.3.2.1.6AmendmentstotheArticlesofAssociation......................................................................................43
1.3.2.2Sharecapital...........................................................................................................................................44
1.3.2.2.1Subscribedcapital.............................................................................................................................44
1.3.2.2.2Reconciliationofthenumberofsharesincirculationatthebeginningandendofthefinancial
year…………...........................................................................................................................................................44
1.3.2.2.3Sharebuybackprogram....................................................................................................................44
1.3.2.2.3.1Authorizationinplaceatthetimeofthisreport.......................................................................44
1.3.2.2.3.2Liquidityagreements.................................................................................................................45
1.3.2.2.3.3DescriptionofthesharebuybackprogramsubmittedfortheapprovaloftheCombined
GeneralMeetingofJuly2,2010.....................................................................................................................45
1.3.2.2.4Authorizedunissuedcapital..............................................................................................................47