REPORT 1 9 9 9 YEAR ENDED 31 MARCH 2000 Smith&Wesson? The Oldest Name In American Fiteanns . SPRINGFIELB ABMIIBY. R AT P POR T annua The 1999 Message from the President Dear Shareholders, World leader on the unique activity, 3P has opened new horizons introducing open market on December 9. We have managed to increase our visibility as with a financial public and among our customers and licensors (brand owners), expand our team by attracting talent n calves, grow our business and acclimatize to the stock market, to a new to grasp. We are doubly pleased with the year just ended. First, we believe we have our successful IPO, taking advantage of favorable period for this type of operation and beyond the current uncertainties. The value has been the subject of an offer to minimum price of 11 euros, today is around euros, while the stock market environment was quite shaken during this perio The introduction of 3P market free has allowed us to discover new compéten thanks to the recent arrival of a CFO within our teams. Furthermore, during the year ended March 31, 2000, we reached consolidated business published chi 57.96 MF, up 44.5% and net income group share of 8.70 MF, up 60.7%. These exceptional results are largely due to: - the good progress known by our sales points, 20 corners are now pla - the increase of the results of foreign company (sales grew by 68%), thanks in particular to the signing of several contracts sublicense with independent ja nais producers and a net position paper on the continent American. Furthermore, we were able to enter a real opportunity on the real estate market investing in new premises better suited to our current growth. These new buildings offer us the opportunity to gather in one place if we and all our warehouses (formerly shared between sites): stoc streamlining productivity, improving communication, we feel all the benefits from aujourd. Our outlook 2000-2001 appear to be excellent. A new growth driver opens to us: the video game industry. Indeed, we have this year signed contracts with the Colt brand, Beretta, Tau and Desert Eagle (gun Lara Croft) for the manufacture and distribution of interactive vi guns, the first products will be marketed by the end of 'year. The group has made this new market its main axis of development and outcome PROMES are very encouraging, so we are very confident about the future persp tives then considered fo the group. SUMMARY On the other hand, the results of the year 2000 - 2001 will benefit from a new revenue source: royalties sub-licensing agreements in Japan and Taiwan. These cont allow 3P to accelerate cost penetration in this market very APPLICANTS • Message from the President • Information about the Company 1 4 • financial informations 6 Consolidated financial statements at 31 March 2000 licenses. 2 • The Company and its products • for interactive games and replica weapons. They also demonstrate the strength and global ray ment of our exclusive Under these conditions, we consider the continuation of per formance of 3P in the XM to best serve our shareholders, our main concern. All the energy of our employees seem meets this challenge. 14 Jerôme March P Brought to you by Global Reports I NOT F ORMA T I ONS CONC E RNAN T The AT SOC I É T É E n 1983 Jérôme Marsac, enthusiast models, created with Vincent Bouvet CIMB Commercial and Industrial Marsac Bouvet's own import and distribution company of models and radio-controlled models from specialist dealers. The team Company Background A young team, with a very strong complementarity rapid growth in business (a business volume of 47MF in 1990 with a workforce of 30 people), enlargement of the range, CIMB quickly became the market leader in dynamic models in France. She JOUEF interests the group, national manufacturer of model trains, which it was sold in 1991 for $ 9 million francs. Jerome Marsac President and CEO At the same time, "The Three Towers" is created in 1986 for models of trade '' ready to fly '(as opposed to the kit). She gradually develops its activity (10 MF turnover in 1990), expands its range of models and became in 1993 an import company and distributor of original products ...: Air Soft Gun, imitation replica guns projecting plastic beads 6mm. Low power and therefore harmless, these copies of weapons with multiple reproduction capabilities are reserved for Thierry Naccache adults only. Operational and Commercial Director Vincent Bouvet Head of Legal and Social The company then became an SA sign in 1997 his first European exclusive license agreement (today expanded the world) with the manufacturer of weapons '' Smith & Wesson ''. This Lawrence Wilk contract enables the import and distribution of brand models whose intellectual property rights Financial director are guaranteed. Other major dealers (Colt Whalter, Famas, Sig Sauer, Taurus, UZI, Springfield Armory, Desert Eagle ...), aware of the challenges it represents, are quick to follow suit. "The Three Towers" quickly becomes world leader in the exact replica of market licensed arms. Between 1996 and 1999 the turnover increased by 400%. Most of the brands owned by 3P knowing unparalleled reputation, guarantee the company a success story. Lucile Marsac Marketing and communication Olivier Gualdoni Export On 9 December 1999, the company enters the free market of the Paris Bourse. Jean Pierre Glasse At the beginning of 2000, 3P signs an exclusive worldwide license agreement with Colt on the France sales brand and all of its models (including video pistols), Beretta and Taurus Desert Eagle are soon to follow. With video, 3P is embarking on an activity whose success may be overwhelming! Jean Louis Loriente Michel Moioli Inventory and Logistics Claudine Puyo, Sylvie Durand Accounting Brought to you by Global Reports The AT S O C I É T É E T S E S P The Air Soft Gun: the heart of the leisure civilization Plastic or metal, Soft Air Gun projecting plastic beads with a power of less R O D U I T S A future promettteur New Legal give favorable: than 0.5 joules, thus ensuring perfect safety. The price range of the products, manufactured exclusively in Asia (Taiwan, Japan and South By signing with major brands exclusive license contracts up to 10 years, Korea), extends 200 Francs Francs 3000 with an average price of less and investing successfully in many trials in trademark infringement, 3P has than 400 francs. been one of the main instigators of a market consolidation. The A global market agreements reached allow it to reproduce all the concerned brand models, and to fight against counterfeiters and distributors who sell these products Three markets 3P Already strongly established abroad (nearly 50% of sales in 7 countries), without any rights. Only "official" manufacturer of gun replicas worldwide, 3P has two key markets outside France. 3P and enjoys a monopoly position in its market and has the objective of supporting European customs to stem the tide of copies of the parallel - the outdoor sport: excellence in leisure product, providing real - Agreements in Asia: 3P signed for the first time in December 1999, market. Regulation of the European Communities No. 3295/94, published sensations through optimal precision shooting, Soft Air shooters attract three sub-licensing agreements with independent Japanese producers recently, transposes at European level the accreditation already held by both amateur and professional. that give them the right to manufacture and distribute some of the brands the French and Spanish customs to pursue criminal counterfeiters infringes which owns the license 3P. Today, 9 agreements were signed in Japan in intellectual property rights. This regulation provides a real reduction of Korea but also in other Asian countries. These allow beneficiaries to litigation costs incurred by the company in the past, and significant the latest multimedia technologies enabling the use of the model on a market legally Air Soft Gun on the Asian market, opening to 3P acceleration of 3P market share. video screen, 3P has in this market with a powerful competitive considerable market. - video games: offering exact replicas of the original weapons integrating Emerging developing markets • Film professionals, are in the "Air Soft Gun" a unique product allowing advantage. them to significantly reduce security-related investments on film sets or - when promoting a film. collectors: attracted to the accuracy and authenticity of replicas at a cost quite reasonable, they are for 3P loyal customers. - The American presence: 3P develops 2 years now society "Softair USA" responsible for the organization and distribution of its products on An efficient distribution network. • The low cost of AIR SOFT GUN compared to real weapons make, also a possible substitute for professionals within the drives (gendarmerie, the American continent. This helped its licensors and law firms, is now police ...). studying the best application of its distribution rights in the US. 3P has chosen to concentrate its actions on wholesalers and independent retailers, spread throughout Europe. The success of the corners of the policy: Video games: the excitement of a new niche Thus the year 1999/2000, the company made 30% of its sales from The success of "showcases contracts" signed with distributors, was born wholesalers, 17.3% among gunsmiths, 15.2% among video game stores the political corners. In partner stores, the corner can show the full range and 37.5% from other independent retailers . in his environment, relatively low costs. In late August, 22 corners are 3P could sign several exclusive license agreements with the Colt brand, already open in Europe, demonstrate innovative marketing that has Beretta, Taurus and Desert Eagle (the famous Lara Croft gun), reflecting attracted the distribution. the strategic commitment to strengthen its position among distributors of - To develop these markets, 3P has launched the "windows contracts": video games, which represent today ' hui over 25% of sales. in Europe provision of a window adapted to the presentation of exceptional payment there are over 5000 video game store where the appearance of the Air products and deadlines. Their success is obvious since on average Soft Gun, recently, already a huge success with a younger audience, observed a doubling of sales per outlet following the accession to this eager for novelty. By diversifying its activities, 3P should enjoy the leisure commercial offer. 3P also has 2 direct operated stores giving it a real market boom. close to the final consumer and thus the constant improvement of products in the range. 3P intends to develop the concept in the coming years. Brought to you by Global Reports I NOT F O RM AT T I O NOT S F I NOT AT NOT C I È R E S Analysis of activity d) Net income much higher 1 The net income group amounted to 8.70 w MF regression of 60.7%. Excluding b) A turnover in constant progression Evolution of Turnover and Net Income (over 3 years) and Analysis listing costs would have been 8.98 MF up 63.3%, revealing u net margin of 15.1%. Net income was multiplied Taking into account the two preceding remarks, and making the necessary by six in three years. adjustments for a more consistent view of the business year, the figure exercising consolidated sales amounted to 59.65 against 40.09 MF MF the previous year, an a) Preliminary remarks increase of 48.8%. Turnover multiplied by 4.8 in 3 years, is the result of a rapid and strong hold market share "Airsoft" 3P in France and Europe. Operating income rose 43.6% is penalized by provisions for doubtful accounts. This year, two important factors have had an impact on the analysis of the These provisions were made very cautiously and could settle on the current year by consolidated financial statements: substantial occasions. Operating income was multiplied by 6.3 in 3 years: 99/98 98/97 (700 KF), we can consider that the pro forma turnover registered by trademark 3P is accounts for this year is 191,259 F recorded in depreciation and therefore are 73 MF. ,% 8 98/97 deducted from the operating result, while it is rather an exceptional charge. 99/98 variation 99/98 98/97 50 79.8% 78.7% 43.6% % , 46 02 03/97 03/00 03/99 12 find this amount in positive foreign exchange difference. This anomaly is today 69 30 %& %& 98/97 20 03/97 03/98 03/99 03/00 99/98 variation 49.5% 03 % 10 99/98 variation % resolved. 03/98 net result MF 48.8% &%&0 40 % % %0 15 variation variation 195.5% 99/98 variation variation 99/98 variation 48.3% ,0% , 60 book that led to underestimate the turnover generated in England 1.686 MF to %.& 60.7% Taking into account sales under brand 14MF corresponding to licensed royalties immobilized. These costs are amortized over 3 years and the impact on the • Financial products are abnormally high. This is a bad accounting franc parity variation 145.5% 10 • 1,844 MF introductory costs are recorded in "Other external expenses" and 99/98 variation variation 52.3% %.0 variation 140.1% 59.8% ,%, 10 operating income MF 8 0 03/97 03/98 03/00 03/99 % 0 %, 46 Sales in MF 02 c) Intermediate balances still very high 03/97 03/98 03/99 03/00 Evolution of net income adjusted for amortization of Surva The crude result amounts to 14.81 MF or an increase of 58.4%. This increase, higher than that of sales made by indicating mastery of external expenses and personnel. After a stabilization net margin in 1997 autou 10%, the evolution continues to be very positive: Gross profit increased by 8.6 in 3 years: % 98/97 99/98 variation 95.7% %. %. 99/98 variation % variation 178.9% 58.4% &% 0% , 15 12 % , 69 %. 12 15 03 03/97 crude result in MF 0 3 6 9 Brought to you by Global Reports 03/98 03/99 03/00 03/97 03/98 Evolution of net margin in% 03/99 03/00 I NOT O F RM AT T I O NOT S F I NOT AT NOT C I È R E S Analysis of activity 2 Distribution of revenue a) Breakdown by region Revenues still for more than half b) Breakdown by distributors French. 3P distribution policies are largely illustrated here: Countries 40.2% • France, gunsmiths take a historical place, but the video game shops are now the majority. The distribution is in large part directly (few wholesalers) with a thorough la France 59.8% understanding of customer needs. c) Distribution by brand France / Export to March 1999 Other Holland Andorra 0.2% 0.5% Switzerland 2.3% • abroad, the choice has logically focused on indirect distribution and our products USA 0.1% Colt brand remains by far the most sold and p ment justifies 3P investment policy are not yet fully represented in video game stores. Spain 1.4% Austria 1.5% on the exercise of the purchase COLT license will decrease in the av ne the overall cost of royalties. Countries 46.8% England 14.8% Germany 6.2% This situation should change significantly in fiscal 2000, given the choice of 3P to engage fully in the video game market. la France This table can also measure the impact of No "natural publicists": the release of 53.2% the latest Bond Jam strongly influenced sales Walther P9 Finally, the effect "Lara Italy 5.1% Croft" is no slouch as statistics show sales of the Desert Eagle, this q suggests 50 Belgium 8% excellent prospects for output the interactive version on Playstation. France / Export to March 2000 Other ,% Do not include income from Asian sub-licenses 40 Export to March 1999 % 30 & % % The change however appears very clearly favorable for export, and turnover abroad % 20 should be majority already in 2000. &% 10 Indeed, 3P continues its development efforts abroad. New countries such as Denmark, Greece, Israel and Sweden are among our clients today. However, it is the US which should experience a sharp increase this year. Netherlands 0.5% Greece, Israel, Sweden 0.2% Andorra 0.6% USA 0.1% gunsmiths Spain 2.5% Video games Distribution type dispenser in% Austria 2.6% England 19.7% Germany 4.3% UZI 2.3% % 0 Switzerland 2.3% la France Other games wholesalers Springfield 5% Colt 17% Desert Eagle 6.9% Outside of France Smith & Wesson 7.6% Other 11.7% Italy 6.4% Walther 9.1% Belgium 6.8% Export to March 2000 Do not include income from Asian sub-licenses Brought to you by Global Reports SIG Sauer 9.8% Breakdown by Brand I NOT RM O F AT T I O NOT S F I NOT AT NOT C I È R E S Analysis of activity 4 3 Summary of the licenses 3P stock information Evolution of the share price Besides purchasing the license COLT, the year was marked by negotiating new licenses such as Beretta, and the variation of existing licenses such as Desert Eagle A first phase was held up until February with a high of 15.5 euros, followed by a and Taurus in the video games. These new licenses will start our "interactive" consolidation phase that was general until May The index surper formed on the first activity on such solid foundations as those of "Airsoft". three due to the effect of "Internet stocks". Since then, the title follows the evolution of the index with an average volume of 1600 shares. On 31 August, the rise in the index was 47.4% against 6.4% for the 3P action. licensor Signature 3 NU MU CITT CENU IS M E IS SM JMI 1S SZ Effective Date exclusiveness Territory Object Air Soft Toys 27/01/98 01/04/97 YES WORLD 05/03/97 01/04/97 YES WORLD 05/11/97 01/12/97 YES EUROPE Air Soft Air Soft Air Soft 02/04/97 01/04/94 YES EUROPE Air Soft Air and Video Soft Air Soft Air Soft 14/10/98 01/04/98 YES EUROPE Games and Video BD7 15/09/98 01/09/98 YES WORLD Games 4ITISU 5E NI 04/06/98 04/06/98 YES WORLD AE S T 22/03/99 22/03/99 YES WORLD 2ISIUUE 30/07/99 30/07/99 YES WORLD Soft Air 6E ET 14/03/00 01/04/00 YES WORLD Video Games The 3P licenses Action 3P / Free Market Index Index 3P Brought to you by Global Reports I && & NOT F O R M AT T I O NOT S F I NOT AT NOT C I È R E S & & & & & Board Management Report Ladies and Gentlemen, Significant events during the fiscal year ended March 31, 2000 You are asked to set attendance fees to 50,000 francs Moreover, the local change occurred in the first half of 2000 could exercise have a slight negative impact on the business but will increase the 2000/2001. Group's productivity from 2001 through rationalization of inventories You are gathered for their annual meeting in order to approve the The introduction of the free market December 9, 1999 opened new (grouping in one warehouse) . Finally, the second half will be horizons to 3P. The immediate effect has been an increase in characterized by the entry of 3P in a new market segment, the gun We offer also adopted other resolutions listed on the agenda All corporate documents have been communicated or made available awareness of the company both in the public and in relations with its replica for video games. The company has already negotiated four and that it will be you read. to the conditions and limits provided by law. financial partners. This event, in addition, permits to expand licenses for the new domain, including the Colt and prestigious administrative and management teams by attracting new talent. Berretta. The first model will be the weapon of Lara Croft: the Desert financial statements for the twelve months ended 31 March 2000. Board of directors Eagle. The company DYNEXPERT and Fidula company auditors, you will also read their reports. COLT is the most recognized brand in the world; so the purchase of Review of the company's position this license was a key factor for 3P. His significant amount is related to the duration of the agreement and the notoriety of the name. This May 2000 saw the completion of the first trial being initiated by 3P, During the year ended 31 March 2000, the company achieved a signature has resulted in an international awareness of the entire por and the infringer is ordered to pay 305,000 F for the benefit of our corporate turnover excluding taxes folio 3P licenses. society. Other procedures are still under investigation. A first consequence consisted of the significant increase in license Proposed resolutions MF 57.8, an increase of 44.5%. Revenues 3P group amounted to 58 MF, up 44.8%. The consolidated group is as follows: revenues in Asia. This latest realization of the right to intellectual - 3P SA - Microtrade (consolidated) - CHL (proportional integration 50%) property in this area is an important step in the development of 3P It is proposed to allocate the net profit for the year, amounting to strategy. 8,516,603 francs, plus the retained earnings of 1,929,582 francs, an amount of 10,446,185 francs, as follows: This strong increase is due, firstly, to the growth of the business points of existing sales and, by t, increasing the number of outlets, Company activity in research and development • 2,000,000 F dividend or net 1 F / share involves a tax credit of 0.50 trade policy based on the identification of our products through "windows" installed at our customers dealers. No charge for research and development has been recognized during F / Action the period. • 2126185 F account "retained earnings". Developments and Prospects It is specified that the dividends distributed for the three previous years were as follows: The social operating result amounted to 9.4 MF 9% increase is largely impacted by the introduction of fees on the open market. Consolidated • F 320,000 to the account "legal reserve" • 6,000,000 F to the account "other reserves" particularly abroad. Territorial development is largely due to a strong 3P continues its regional development on three fronts: operating income totaled 10.9 FM, up 22.5%. • beginning of the marketing in the United States, which could be the single most engine next year After taking into account a tax on profits of 4.5 MF 5.1 MF social and consolidated, net income came to 8.5 and 8.7 Social MF MF be • increasing the number of customers, mainly for export • continuing breakthrough in Asia with a target of 10 clients and 14.7% and 15%. SMNN royalties under sharp increase in licenses T IU MWM I T IS T ESI AE SI MU IS T ESI A UEN E U J 8.50 F 4.25 F March 1998 80,000 10.00 F 5.00 F March 1999 400,000 3.00 F 1.50 F 1,200,000 F 1.00 F 0.50 F 2,000,000 F March 2000 Brought to you by Global Reports FIS J E UM 80,000 March 1997 consolidated net margins respectively 2,000,000 680.000 F 800,000 F && & ACCOUNTS CONSOLIDATED STATEMENTS TO March 1 MARCH 2000 & & & & & LIABILITIES BALANCE SHEET ASSETS SECTIONS Gross Amortization 31 March 00 31 March 99 INTANGIBLE ASSETS SECTIONS Social or individual capital (including paid: 4,000,000) Legal reserves Other reserves Retained Reserves Group again INCOME FOR THE Administration fees Concessions, patents, similar rights to acquire Difference Other intangible assets 1 884 284 11 171 844 846 166 40 191 259 297 672 338 466 000 1 693 025 10 874 172 507 700 40 YEAR (profit or loss) 58,093,592,316 338,250 Plant, equipment Other fixed assets 50 737 2 338 250 811181 5197305139 040 729 390 569 45 80 000 426 307 3 800 000 80 000 426 307 2 445 308 40,000 EQUITY 1,201,750 4000000 31 March 99 481 088 000 PROPERTY land Buildings 31 March 00 642,070 1,239,688 8681544 5391101 16,668,940 9142716 Minority interests Minority 43 409 14 Reserves 812 MINORITY INTERESTS 58221 540 1 735 590 562012 INVESTMENTS Provisions for liabilities Provisions for deferred taxes Other investments 183 991 183 991 loans 757 605 757 605 Other financial assets 519 410 519 410 1 014 654 228 230 666 222 208 968 1242876 439634 16 508 217 8 7 770 479 1 189 814 37500751308 PROVISIONS RISKS, CHARGES FINANCIAL DEBTS FIXED ASSETS 19034766 1948914 17,085,852 4112801 Borrowings from credit institutions Other borrowings and financial liabilities Advances received on contracts in progress INVENTORIES AND WORK IN PROGRESS Stocks of Goods 15,783,578 62,342 15,721,236 190 527 426 674 11,302 5398 8406718 EXPLOITATION DEBT RECEIVABLES Trade receivables and related accounts States - 9 761 504 127 621 158 9 140 346 127 Deferred taxes 927 5282411 927 5282411 other receivables 8762844 8762844 Trade payables and related accounts Taxes and social 5 579 674 3 5 049 384 3 4540958 security 850 953 466 906 3 594 518 7 OTHER DEBTS 070 615 availability Debts on fixed assets and related accounts Other liabilities Prepaid expenses CURRENT ASSETS active conversion deviation TOTAL Brought to you by Global Reports 3 447 687 407 271 REGULARISATION ACCOUNT 230 140 39948404 230 140 683500 49751 59032921 39,264,904 49751 2632414 56,400,507 214 025 23826834 126 468 28,066,103 747089 REGULARISATION ACCOUNT Deferred 434 838 17823 DEBTS 38,430,469 18,483,753 TOTAL 56,400,507 28,066,103 ACCOUNTS && & CONSOLIDATED STATEMENTS TO March 1 MARCH 2000 & & & & & INCOME STATEMENT (1 era part) SECTIONS la France Sale of goods 31,505,903 INCOME STATEMENT (2 th part) Export 25899014 31 March 00 57404917 31 March 99 39788317 Production sold goods Production sold services NET SALES SECTIONS Extraordinary income from management operations Exceptional income from capital transactions Reversals of provisions and 554 211 32,060,114 554210 25899014 Immobilised production Operating grants 57959128 303 426 40091743 1844284 48 426 91 Reversals depreciation, provisions, expense transfers 034 496 319 577 Others products 703 182 702 EXPLOITATION PRODUCT 60439576 40618022 Purchases of goods (and duties) Change in inventories of 30 858 226 7 712 18 196 339 2 goods 228 523 246 Purchases of raw materials, supplies EXCEPTIONAL PRODUCTS expenses on capital transactions Exceptional depreciation, amortization, provisions Taxes and similar payments Wages 3697139 280,190 44,409 113663 EXCEPTIONAL RESULT 2316532 53217 Depreciation Amortization of goodwill employee profit participation 349 of the Taxation expansion in deferred tax benefits on profits 11,080,226 180 999 2 570 031 818 388 933 608 social security costs 242 703 036 325 228 169 Depreciation Depreciation on fixed assets Depreciation and 629 836 860 103 758 104 provisions on current assets Depreciation Provisions for risks 705 1 481 198 1 054 and charges 692 955 EXPLOITATION CHARGES 49510454 31703599 OPERATING INCOME 10,929,122 113663 1380607 392 339 150 411 469 3 60446 1,056,008 84,616 5 055 707 108 17,366,199 60446 3,046,715 EXTRAORDINARY CHARGES Change in inventory (raw materials, supplies) Other purchases, external expenses 650,424 31 March 99 expense transfers Extraordinary expenses on management operations Exceptional 24 000 31 March 00 672 84,616 2843701 18,647 Total products 67,751,850 41,155,449 TOTAL EXPENSES 59,055,494 35764348 Income from consolidated companies 8696356 5391101 Result Out Group Result 8681544 5391101 Other expenses other interests and similar products 96 965 71 066 50 126 468 3 688 355 exchange gains 389 571 228 FINANCIAL PRODUCTS amortization financial allocations and provisions Interest expense Foreign exchange losses 2131 3615135 CASH FLOW 476982 49 751 126 468 717 421 2 494 203 365 610 373 691 5761 Net expenses disposals securities 14812 8914424 Reversals of provisions and expense transfers Foreign Net income transfers securities Group Opening cash Closing cash impact from fluctuations of foreign currency - 4 711 908 4 083 915 - 76717 FINANCIAL EXPENSES 3132782 1000123 Change in cash BOTTOM LINE CURRENT RESULT BEFORE TAX Brought to you by Global Reports 482353 11,411,475 523141 8391283 - 704710 ACCOUNTS && & CONSOLIDATED STATEMENTS TO March 1 MARCH 2000 & & & & & ANNEX The parent company or the 3P company integrates Microtrade SARL companies between accounting and tax values ​of assets and liabilities on the balance sheet. A I UIT E UEFNIT FIN TUEUI I UT E 9ES ESI E M UI SEN ESU J U I TUMU UI E E I M U U I FENE T NM EUI JM E MEN I T IIU J S U I ZIES I the year, a provision is made when the value is less than the input value in the I &&&% The withheld tax rate is 36.66% for French companies at 31 March 2000, 1999 was built this year for the first time. T NM EUI JM E U I T NM EUM I U U IM UM MEN TUEUI I UT EWI FII SM SI UT 8 S E EN 1 UM I 000 E S WM FNMT I FZ U I 3 I 3 MU • tax rate of corporation: 33.33% • Contribution 10% (Law 1995): 3.33% MN U I MUUII J U I Other financial assets Other financial assets consist of loans as well as deposits and The CHL society is integrated for the first time this year. His first year of opening is In fiscal deficit situation, deferred tax assets are only recognized if their recovery 18 months. is probable. Company excluded from the scope of consolidation tangible assets stocks Freiburghaus Company (CP 149, 1225 CHENBURG SWITZERLAND) The company Tangible assets are valued at their acquisition cost or at cost plus incidental Inventories of raw materials are measured using the weighted average unit cost. is owned 22% by 3P. The company, agent for Switzerland, closed its last financial expenses, excluding acquisition costs of fixed assets or production cost. guarantees. T% B NITT U IS MTI TUEUI M JSE J U I 4I SII J T NM EUI E NEUM SI ESI M E M NIT ITUEFNMT I FZ U I EUM NI I UEUM S NIT J U I E balance. The company Shooting Planet, whose activity was not significant on consolidation A I SINEUM financial assets Other investments Other investments are valued at acquisition cost. At the end of SHOOTING PLANET Unlimited and COUNTER HOBBY LEISURE SARL U I EUE ESI SITI UI T% year on 31 December 1999. The 3P company has no significant influence on Freiburghaus, this one was excluded from the scope of consolidation. The gross value of goods and supplies includes the purchase price and related expenses. Depreciation is calculated using the modes and times usually admitted. Methods duration and consolidation Method Companies in which the 3P company has exclusive control are consolidated by the Note 2 Note 1 The slow-moving items are subject to an impairment up to 50%. Principles Accounting policies of amort. Construction 20 years fixtures The 3P company and all its consolidated subsidiaries stop their year to 31 March. 5 to 10 years showcases sustainable and equipment Transportation equipment furniture method of global integration. The company for which 3P has joint control has been proportionately consolidated. Designation Receivables and payables Receivables and debt are recorded at nominal value. Linear Linear 10 years Linear 3 years Linear 4 to 5 years Straight-line or reducing balance Office and computer equipment 4 to 5 years demonstration equipment Fashion of amort. A provision for impairment is performed when it appears a probable loss in accordance with the precautionary principle. Provisions for impairment recognized are individualized and not the result of an overall estimate. Linear 5 years Linear Foreign currency transactions Company included in the scope of consolidation Difference on consolidation Intangible assets Receivables, debts and availabilities in foreign currencies are translated and Goodwill was determined at the date of entry into the scope of consolidation for all Resort fee: The IPO costs are depreciated over a 3 year period using the straight. recorded in francs on the basis of the course of the day of the operation. group companies. Method At the end of the year, all operations in the balance sheet are converted based on Integration% interest 3P Parent company 6, rue Jean-Jacques Rousseau 91350 Goodwill so determined were brought to the balance sheet under "Goodwill" and Concessions, patents, trademarks: The trademark registration rights, trademarks the conversion rate on the date of the financial statements, translation differences amortized over a period of 10 years. registrations paid INPI FOMPI or other agencies provide protection for at least 10 are recognized in suspense accounts. years. They are then renewed for 10 years. These investments are amortized over Grigny 10 years on a straight. Microtrade SARL 3 Street homes Integration 100% overall L1537 Luxembourg COUNTER HOBBY CLUB SARL Integration Conversion of financial statements of foreign subsidiaries Retirement commitments The accounts of foreign subsidiaries have been converted into Swiss francs, taking The commitments for retirement benefits are not provided in view of the age average into account the historical rates for the conversion of the share capital, the closing low enrollment. rate for other balance sheet accounts and the average rate for the income proportional 50% statement. 2, rue des Innocents 75001 Paris SHOOTING PLANET Unlimited 157 Praed Street LONDON W RL 21 Brought to you by Global Reports The exclusive reproduction licenses are depreciated according to the contract, using the straight. Integration overall 51% Income taxes Deferred taxes have been accounted for using the liability method for temporary differences existing Various The other components of the balance sheet and income statement are evaluated Software is depreciated over 1 year on a straight. and presented in accordance with accounting and tax standards generally accepted. ACCOUNTS && & CONSOLIDATED STATEMENTS TO March 1 MARCH 2000 & & & & Note 5 Note 3 & Investments SECTIONS Amount at Entries ds the beginning of boundary during year the former. Amount at end of year Acquisitions & 1844284 FORMATION EXPENSES, R & D OTHER CAPITAL INCORP. 210 224 GAP ACQUISITION 846166 2250 1844284 11,039,370 Buildings on own land 303,820 1,644,235 2,845,985 594529649470 13312 489417 23441 4264577 INVESTMENTS 36753 978623 - 25502 6299590 TOTAL Gross Net value 2000 Values ​Net 1999 15,721,236 8406718 A 1 year or less 16,678,997 At more than 1 year 15,401,982 1277015 13501 808237 15,161,281 Note 6 A 1 year or less + 1 year, 5 years + Maturity of borrowings 964 321 11 412 521 3321 1469390 338 250 1 201 750 2139254 300352 2439606 204 Gross CURRENT LIABILITIES 38,430,469 TOTAL 3631466 31153023 7 277446 1461006 19034766 Note 7 Note 4 62,342 TOTAL 594 529 187878 2351223040 9061278044 Office equipment, computers, furniture PROPERTY supplies 15,783,578 846166 Plant, tool. Industrial General installations, fittings, various Vehicles Gross value RECEIVABLES 11251844 642,070 grounds INVENTORY Merchandise disposals Contribution Inventories and trade receivables Exceptional items EXPENSES AND INCOME EXCEPTIONAL RESULT loads 1380607 products 3697139 2316532 The shock absorbers SECTIONS Amount at Entries ds the Amount at beginning of boundary during end of year year the former. FORMATION EXPENSES, R & D OTHER CAPITAL INCORP. 112 131 GAP ACQUISITION 253 850 PROPERTY Brought to you by Global Reports decreases 191259 191259 185541 297672 84,616 30252 1820807 353706 1083247 2186788 815121 1083247 1948914 Change in equity Equity group at beginning of year Profit for the year 9 142 716 8 Dividends 681 544 1 200 000 1121518 Entry into the consolidation scope Shooting Planet 0 30252 Note 8 CHANGES IN EQUITY 338466 0 INVESTMENTS TOTAL Depreciation EQUITY GROUP AT END OF YEAR The integration of CHL company did not generate variation on equity. 44,679 16,668,940 CONSOLIDATED STATEMENTS TO March 1 MARCH 2000 Note 11 Note 9 ACCOUNTS supplies for Risks and Charges Off-balance sheet commitments given The provision for risks in the amount of 964 KF is destinée to cover: SECTIONS • 3P the dispute between a commercial agent before the Tribunal de Grande Instance of Evry for 769 KF. Off-balance Pledge of goodwill Notes receivable discounted • in a trial in Labor Court to 72KF. • The loss caused by unsold Millenium operation for 124 KF. 2 355 000 2 Documentary Credit-term foreign currency 536 758 2 Purchase Guarantees 500 000 300 000 900 000 The provision for foreign exchange loss of $ 50 KF was formed to cover the unrealized losses arising from the translation at the exchange rate of March 31, 2000 3P debts in foreign currency. TOTAL 7 691 7587 commitments received Provisions for risks and charges 31 March 00 TOTAL 1014654 31 March 99 Mr. J. Marsac is backed by the lease contract SOFAL up rents remaining. 230 666 Note 12 average number of the group Note 10 The staff of the 3P group down as follows: FRAMES Composition EMPLOYEES 5 STAFFING GROUP March 31, 2000 TOTAL 21 26 2000 sales Note 13 SALES FIGURES 03/31/00 Growth in% 24 835 5 27.94% 875 3 520 3 97.01% 755 3 031 1 23.89% Germany Spain Italy 533 2 920 2 84.01% Switzerland Austria 374 1 300 Other export 366 1 300 248 1 853 46.31% 435 1 579 147.84% 599 754 112.07% 40092 44.57% France England Belgium 31 774 10 31/03/99 Earnings per share Earnings per share stock Number of actions Net profit 2000000 8696356 Earnings per share 4.35 3.22% 355.33% Note 14 Share capital structure The share capital of the company 3P consists of 2,000,000 shares of CHF 2. TOTAL 57959 in thousands of francs Share capital structure Capital Nominal 2 initial capital 400000 Increase 1600000 A double voting right is attributed to all fully paid registered shares registered in the name of the same shareholder for at least two years. Brought to you by Global Reports Capital at year end 2000000 ACCOUNTS CONSOLIDATED STATEMENTS TO March 1 MARCH 2000 Report of the Auditors Ladies and gentlemen, In compliance with the assignment entrusted to us, we have audited the consolidated financial statements of the company 3P, expressed in francs, for the year ended March 31, 2000 as attached to this report. The consolidated financial statements were approved by the Board of Directors on 4 August 2000. It is our responsibility, based on our audit, to express an opinion on these accounts. We conducted our audit in accordance with professional standards: These standards require the implementation of procedures to obtain reasonable assurance whether the financial statements are free of material misstatement. The audit involved examining, on a test basis, evidence supporting the information contained in these accounts. It also included assessing the accounting principles used and significant estimates made in the financial statements and evaluating their overall presentation. We believe that our audit provides a reasonable basis for the opinion expressed hereafter. We certify that the consolidated accounts are regular and sincere and give a view of the assets, financial position, and results of all of the companies included in the consolidation at the end of this year and last year . Furthermore, we also verified the information given in the report on the management of the group. We have no comment to make on the fairness and consistency with the consolidated financial statements. Done at Paris August 28, 2000 DYNEXPERT SA Fidula SA Company auditors Represented by Hervé Tymowski Company auditors Represented by Mr. Jean-Louis Rouzé Brought to you by Global Reports 146, boulevard Haussmann, 75008 41, Avenue de Friedland, 75008 Paris Paris