ANNUAL AND EXTRAORDINARY SHAREHOLDERS MEETING. September 30, nd notice

Transcription

1 ANNUAL AND EXTRAORDINARY SHAREHOLDERS MEETING September 30, nd notice 1

2 AGENDA OF THE MEETING 2

3 Agenda of the annual shareholders meeting (1/2) 1. Approval of the company financial statements for the fiscal year ended March 31, Approval of the consolidated financial statements for the fiscal year ended March 31, Appropriation of income for the fiscal year ended March 31, 2011, as reflected in the company financial statements 4. Ratification of the appointment of James W. Wilson as a director 5. Ratification of the appointment of Mrs. Alexandra Fichelson as a director 6. Renewal of the mandate of Mrs. Alexandra Fichelson as a director 7. Approval of the regulated agreements entered into or which remained in force during the fiscal year or subsequent thereto other than the agreements between The BlueBay High Yield Investments (Luxembourg) SARL and BlueBay Asset Management plc and/or their affiliates and the Company 3

4 Agenda of the annual shareholders meeting (2/2) 8. Approval of the regulated agreements between the Company and The BlueBay High Yield Investments (Luxembourg) SARL and BlueBay Asset Management plc and/or their affiliates 9. Approval of the agreement benefiting to Mr. James W. Wilson as per article L of the French Commercial Code 10. Grant of authority to the board of directors to trade in shares of the Company 11. Renewal of the appointment of the company auditor and the alternate auditor 12. Determination of the amount of directors fees to be allocated to the members of the Board of Directors 4

5 Agenda of the extraordinary shareholders meeting Before the special shareholders meeting: 13. Delegation of authority to the Board of Directors to increase capital by issuing negotiable securities with a right to the Company's equity, without shareholder preemptive rights, by means of offerings governed by article L (II) of the Monetary and Financial Code 14. Authorization to distribute bonus shares to employees and officers of the Company and its affiliates 15. Delegation of authority to the board of directors to issue shares or other securities with a right to the Company's equity, for offering to members of a company savings plan 16. Reduction of share capital, not motivated by losses, by reducing the nominal value of the shares from 1 euro to 0.5 euro and allocation of the amount of the reduction to a premium account Before the annual and special shareholders meeting: 17. Powers for formalities 5

6 Frank Dangeard INTRODUCTION 6

7 Atari in 2011 Focus on casual / social / mobile gaming - Franchises & brand licensing - 1 st success of Atari s classics launches - Development of partnerships Legacy assets sold or closed - Cryptic Studios sold - Eden restructured Significant improvement of financial performance - Maturity of the BlueBay credit facility extended to Dec. 30, H2 2010/2011 COI exceeded guidance at + 7.1m 7

8 Jim Wilson FY 2010/2011 RESULTS 8

9 P&L Summary in m - IFRS 5 FY 2010/2011 FY 2009/2010 Change H2 2010/2011 H2 2009/2010 Revenues, net % margin 61% 50% +11pt 68% 46% Current Operating Income (loss) Operating Income (loss) Profit (loss) from continued operations 0.5 (6.2) (0.4) (8.9) (0.9) (14.2) Net Income (loss) (6.2) (23.3) Net Income (loss) attributable to equity holders of the parent (6.2) (19.4) * The net income of Cryptic Studios business, in the process of being disposed as of March 31, 2011, is reported on the line discontinued operations as of April 1, /2010 and 2010/2011 Group sales and current operating income exclude Cryptic Studios business. 9

10 P&L analysis» H2 2010/2011 COI exceeds guidance with a 6.2m improvement» FY 2010/2011 COI at 0.5m (+ 6.7m vs. LY)» FY 2010/2011 Net losses reduced by 13.2m to - 6.2m FY 2010/2011 Change in net income* (loss), in m FY 2009/2010 losses: -19.4m Lower revenues Higher gross margin Lower R&D and marketing expenses Reduction in G&A and restructuring expenses Other FY 2010/2011 losses: -6.2m + 7.2m + 2.6m m - 19,4m m m * The net income of Cryptic Studios business, in the process of being disposed as of March 31, 2011, is reported on the line discontinued operations as of April 1, /2010 and 2010/2011 Group sales and current operating income exclude Cryptic Studios business. 10

11 Net debt and net cash as of March 31, 2011» Cash and cash equivalents improved at 16.4m vs. 10.3m LY: - Financing inflows of cash of 32.4m, offset by: - Outflows of operations: - 8.5m - Investments funding development: m» Net debt at 36m: - Approx. 5m Oceane 2011 reimbursed in early July Approx. 35m cash received from the sale of Cryptic Studios in August 2011, in part used to reimburse 21.6m of the credit facility» As of Sept. 2011: BlueBay credit facility at 24.2m with maturity extended to Dec. 30, 2011 in m OCEANEs 2011 and 2020 March 31, 2011 March 31, ORANEs BlueBay credit facility Other Total debt Cash and cash equivalent Net cash (net debt)

12 Q1 FY 2011/2012 revenue Q1 revenues in m 1Q 2011/2012 1Q 2010/2011 Change Digital Net revenues of 9.2m down 5.2m vs. Q1 2010/2011, in line with expectations Retail Total Net Revenues Split by Segment 1Q 2011/2012 1Q 2010/2011 Retail 40% Digital 60% Retail 76% Digital 24%» Continued shift of sales towards mobile and online casual games» Fewer and more profitable retail releases» Strategic exit from third-party, lower margin distribution business in the US 12

13 Shareholding structure as of August 31, 2011 Shareholding structure as of Aug. 31, 2011 on an outstanding basis* Shareholding structure as of Aug. 31, 2011 on a fully diluted basis* Other 83% BlueBay 17% Other 36% BlueBay 64% Total outstanding number of shares: 24.8m Estimated total fully diluted number of shares: 70.2m** * Estimates based on information provided to the Company by shareholders and Caceis. Fully diluted number based on existing financial instrument with dilutive impact (excluding part of Cryptic Studios bonus and earn-out payment) ** Based on the recent share price, out of the 45m financial instruments with dilutive impact, approx. 91% are in the money 13

14 Share price evolution ATARI / UBISOFT / GAMELOFT SHARE PRICE EVOLUTION* Atari : 2.77 Ubisoft : 8.25 Gameloft: 5.28 Atari : 1.39 Ubisoft : 3.85 Gameloft: ATARI UBISOFT GAMELOFT * Euronext Data Comparison from January 3, 2011 to September 26,

15 Jim Wilson OPERATIONS AND STRATEGY 15

16 Social and Mobile Markets» Casual gaming market perfect fit for Atari IP and Atari consumer brand» Growth in application and browser-based gaming presents significant opportunity» Further direct access worldwide consumer base - community expansion WW Online Games Est. Revenue ( ) Mobile Games Est. Revenue ( ) Billions $8 $7 $6 $5 $4 $3 $2 $1 $- 35% 65% Social Games Casual Games 38% 42% 43% 44% 45% 62% 58% 57% 56% 55% Billions $8 $7 $6 $5 $4 $3 $2 $1 $- Other Territories United Sates 51% 50% 47% 44% 45% 36% 55% 56% 53% 50% 49% 64% Note: The Casual Games estimate includes subscriptions, try-and-buy, pay-to-play and virtual goods IDG 16

17 Atari today: Focusing on high-growth market segments Casual Mobile Online/Social Digital Download PC Console Brand Development & Licensing 17

18 Leveraging the strongest-selling brands of Atari s portfolio 23 Million Units Sold 13 Million Units Sold 10 Million Units Sold 22 Million Units Sold 100+ Classics Franchises 80+ Original Franchises 12 Million Units Sold 19 Million Units Sold 12 Million Units Sold Delivered via Digital Platforms 18

19 Atari Mobile Social Online Network Atari.com a central hub for mobile, social and online games Aggregate and Integrate communities and digital consumers, metrics analysis, monetization Games Community Cross-platform Games Community Cross-platform Leaderboards Tournaments Rewards Affinity Solutions Shop MOBILE 19

20 2011/2012 releases First achievements and roadmap Atari s Greatest Hits itunes Store Released in June 2011 Yar s Revenge XBLA Released in April 2011 #1 D&D: Daggerdale XBLA, PC download Released in June 2011, PSN and ios to be released in H2 FY 12 #1 Warlords XBLA, PSN Released in Fall 2011 Star Raiders XBLA, PC, PC download Released in May 2011 Centipede: Infestation 3DS, Wii To be released during Holiday 2011 The Witcher 2: Assassins of Kings PC, PC download Released in May 2011 #1 RollerCoaster Tycoon 3D 3DS To be released in Spring 2012 Dungeons & Dragons: Heroes of Neverwinter PC To be released in October

21 Conclusion Atari s strategy in a nutshell:» Focus on high-growth market segments: mobile / casual / digital» Leverage Atari s IP and brand on all appropriate platforms» Increase flexibility with development of games by third parties and co-publishing deals The Company expects to report continued improvement in Actual COI in H1 and maintain profitability in H2 of FY2011/2012, as compared to the equivalent periods of FY2010/2011 Overall the Company expects continued improvement in COIfor the FY 2011/

22 MERCI Thank you 22