Rapport Annuel / Document De Reference
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ANNUAL FINANCIAL REPORT/REGISTRATION DOCUMENT Fiscal year 2008-2009 ATARI (formerly Infogrames Entertainment) ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT A French société anonyme (joint stock company) with share capital of €12,975 ,860 Registered office: 1, place Verrazzano , 69252 Lyon Cedex 09 – France Lyon Trade and Companies Registry number 341 699 106 ANNUAL FINANCIAL REPORT REGISTRATION DOCUMENT This Registration Document (document de référence) was filed with the AMF (French securities regulator) on July 31, 2009, in accordance with Article 212-13 of the AMF‟s General Regulations. It may only be used for the purpose of a financial transaction if it is accompanied by an information memorandum (note d‟opération) approved by the AMF. Pursuant to Article 28 of European Regulation 809/2004, the following information is incorporated by reference in this Registration Document: The consolidated financial statements and the corresponding Statutory Auditor‟s report for the fiscal year ended March 31, 2008, as included on pages 69 to 131 in the French Registration Document filed on August 1, 2008 under no. D 08- 0577. The consolidated financial statements and the corresponding Statutory Auditor‟s report for the fiscal year ended March 31, 2007, as included on pages 66 to 130 in the French Registration Document filed on July 31, 2007 under no. D 07- 0784. CONSOLIDATED FINANCIAL STATEMENTS FISCAL YEAR ENDED MARCH 31, 2009 Note to the reader: The English language version of this report is a free translation from the original, which was prepared in French and is available on the company‟s corporate website (http://corporate.atari.com). In the event of any inconsistencies between the original language version of the document in French and this English translation, the French version will take precedence. 2 ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT CONTENTS GENERAL INFORMATION ----------------------------------------------------------------------------------------------------------------------------------------------- 4 CORPORATE PROFILE ------------------------------------------------------------------------------------------------------------------------------------------------ 4 STRATEGY ---------------------------------------------------------------------------------------------------------------------------------------------------------------- 6 HISTORY ------------------------------------------------------------------------------------------------------------------------------------------------------------------- 8 THE MARKET FOR INTERACTIVE ENTERTAINMENT SOFTWARE ------------------------------------------------------------------------------------- 9 BUSINESS --------------------------------------------------------------------------------------------------------------------------------------------------------------- 11 FRANCHISES AND LICENSES ------------------------------------------------------------------------------------------------------------------------------------ 12 MATERIAL CONTRACTS -------------------------------------------------------------------------------------------------------------------------------------------- 12 CAPITAL PROJECTS ------------------------------------------------------------------------------------------------------------------------------------------------- 14 FUTURE PROSPECTS ----------------------------------------------------------------------------------------------------------------------------------------------- 15 RISK EXPOSURE ------------------------------------------------------------------------------------------------------------------------------------------------------ 15 MEASURES TAKEN TO PROTECT THE BUSINESS -------------------------------------------------------------------------------------------------------- 15 NON-RECURRING EVENTS AND LITIGATION --------------------------------------------------------------------------------------------------------------- 16 HUMAN RESOURCES AND PERSONNEL --------------------------------------------------------------------------------------------------------------------- 16 GROUP PREMISES --------------------------------------------------------------------------------------------------------------------------------------------------- 17 SIMPLIFIED GROUP ORGANIZATION CHART AS OF MARCH 31, 2009 ------------------------------------------------------------------------------- 17 INFORMATION ON MANAGEMENT AND THE FINANCIAL STATEMENTS---------------------------------------------------------------------------- 18 1. ECONOMIC ENVIRONMENT AND HIGHLIGHTS OF THE YEAR ------------------------------------------------------------------------------------- 18 2. ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS ----------------------------------------------------------------------------------- 23 3. PARENT COMPANY BUSINESS AND FINANCIAL RESULTS (ATARI, FORMERLY INFOGRAMES ENTERTAINMENT) ----------- 31 4. BUSINESS AND FINANCIAL RESULTS OF SUBSIDIARIES ------------------------------------------------------------------------------------------- 33 5. SHAREHOLDERS -------------------------------------------------------------------------------------------------------------------------------------------------- 33 6. ALLOCATION OF NET LOSS ------------------------------------------------------------------------------------------------------------------------------------ 35 7. CORPORATE OFFICERS ---------------------------------------------------------------------------------------------------------------------------------------- 35 8. RISKS TO WHICH THE BUSINESS IS EXPOSED --------------------------------------------------------------------------------------------------------- 47 9. INFORMATION CONCERNING THE WORKFORCE ----------------------------------------------------------------------------------------------------- 55 10. CAPITAL PROJECTS – RESEARCH AND DEVELOPMENT ------------------------------------------------------------------------------------------ 56 11. SUBSEQUENT EVENTS --------------------------------------------------------------------------------------------------------------------------------------- 56 12. COMPANY PROSPECTS --------------------------------------------------------------------------------------------------------------------------------------- 57 13. ATARI SA FIVE-YEAR FINANCIAL SUMMARY ----------------------------------------------------------------------------------------------------------- 58 14. SUMMARY OF AUTHORITY CURRENTLY GRANTED TO INCREASE CAPITAL AND USE MADE OF SAID AUTHORITY DURING FISCAL 2008-2009 (ARTICLE L.225- 100 OF THE FRENCH COMMERCIAL CODE) -------------------------------------------------- 59 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2009 -------------------------------------------------------- 61 CONTENTS -------------------------------------------------------------------------------------------------------------------------------------------------------------- 61 STATUTORY AUDITORS' REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS -------------------------------------------------- 116 INFORMATION CONCERNING THE PARENT COMPANY ------------------------------------------------------------------------------------------------- 118 ANNUAL FINANCIAL STATEMENTS --------------------------------------------------------------------------------------------------------------------------- 118 NOTES TO THE FINANCIAL STATEMENTS ----------------------------------------------------------------------------------------------------------------- 120 STATUTORY AUDITORS' REPORT ON THE FINANCIAL STATEMENTS--------------------------------------------------------------------------- 144 GENERAL INFORMATION CONCERNING THE COMPANY ---------------------------------------------------------------------------------------------- 146 GENERAL INFORMATION CONCERNING THE COMPANY'S CAPITAL ---------------------------------------------------------------------------- 149 INFORMATION ON TRADING IN THE COMPANY'S SHARES ------------------------------------------------------------------------------------------ 164 DIVIDENDS ------------------------------------------------------------------------------------------------------------------------------------------------------------ 166 CORPORATE GOVERNANCE -------------------------------------------------------------------------------------------------------------------------------------- 167 MANAGEMENT, SUPERVISORY AND OVERSIGHT BODIES ------------------------------------------------------------------------------------------ 167 SUPERVISORY AND OVERSIGHT BODIES ----------------------------------------------------------------------------------------------------------------- 173 STATUTORY AUDITORS' FEES --------------------------------------------------------------------------------------------------------------------------------- 175 INFORMATION CONCERNING EMPLOYEE PROFIT SHARING -------------------------------------------------------------------------------------- 175 RELATED PARTY AGREEMENTS ------------------------------------------------------------------------------------------------------------------------------ 175 STATUTORY AUDITORS' SPECIAL REPORT ON RELATED PARTY AGREEMENTS AND COMMITMENTS --------------------------- 176 REPORT BY THE CHAIRMAN OF THE BOARD OF DIRECTORS ON THE PREPARATION AND ORGANIZATION OF THE BOARD‟S ACTIVITIES AND ON INTERNAL CONTROL PROCEDURES, PRESENTED IN ACCORDANCE WITH ARTICLE L. 225-37 OF THE FRENCH COMMERCIAL CODE ---------------------------------------------------------------------------------------------------------------------------------