Ubisoft Entertainment FY2024 Earnings Release

DISCLAIMER
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This slide show may contain estimated financial data, information on future projects and transactions and future
financial results/performance . Such forward -looking data are provided for information purposes only . They are
subject to market risks and uncertainties and may vary significantly compared with the actual results that will be
published . The estimated financial data have not been reviewed by the Statutory Auditors . (Additional
information is specified in the most recent Ubisoft Universal Registration Document filed on July 20 , 2023 with
the French Financial Markets Authority (l’Autorité des marchés financiers)) .
D I S C L A I M E R
Yves Guillemot, Chairman and Chief Executive Officer
Frédérick Duguet, Chief Financial Officer

AGENDA
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F Y 2 4 P E R F O R M A N C E
S T R AT E G I C F O C U S
F Y 2 5 TA R G E T S

FY18
NET BOOKINGS
€1,988m , +34 % YoY, 86 % of total net bookings
€1,498m , +49% YoY , 65 % of net bookings
12 -MONTH S
€2,321m , +33 % YoY
BAC K-CAT AL O G
DIGITAL REVENUES
PLAYER
RECURRING
IN V ES TME N T
€879m , -12% YoY, 38 % of total net bookings )
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FY24: RECORD NET BOOKINGS

RECORD ANNUAL AND Q4 NET BOOKINGS
▪ Improved activity metrics: 138m Unique Active Users on Console & PC, up +4% YoY,
37m MAUs , slightly up YoY, Total Hours Played up 12% YoY, with a higher PRI per hour
▪ Rainbow Six and Assassin’s Creed franchises both achieved very strong net bookings
growth and each benefited from solid fan bases of above 30m unique active players
▪ Back -catalog outperformance notably driven by the stellar
Rainbow Six Siege performance
▪ Return to a strong sequence of quality releases
designed to be long term sellers
▪ B2B partnerships on back -catalog that are incremental to the lifetime
value of the titles as well as on streaming, including licensing the
Activision Blizzard streaming rights on a non -exclusive basis
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FY24 KEY HIGHLIGHTS
FY24 PERFORMANCE IN LINE WITH TARGETS
▪ Non -IFRS operating income of €401m
▪ €91m of Non -IFRS Cash Flow from Operations
COST REDUCTION PROGRAM ON TRACK
▪ Around €150m fixed cost base reduction in FY24

FY24: NON -IFRS P&L
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in € millions, except for per share data FY 2023 -24 FY 2022 -23
% %
IFRS15 Sales 2,300.9 1,814.3
Restatements related to IFRS15 20.5 (74.9)
Net bookings 2,321.4 1,739.5
Gross profit based on net bookings 2,117.1 91.2 1,522.9 87.5
Non -IFRS R&D expenses (1,025.8) (44.2) (1,394.4) (80.2)
Non -IFRS Selling expenses (409.9) (17.7) (339.1) (19.5)
Non -IFRS G&A expenses (280.1) (12.1) (289.6) (16.6)
Non -IFRS SG&A expenses (689.9) (29.7) (628.7) (36.1)
Non IFRS current operating income 401.4 17.3 (500.2) (28.8)
Net Financial Income (40.5) (15.2)
Income Tax (108.8) 114.8
Non IFRS consolidated net income 252.0 (400.6)
Net income attributable to owners of the parent company 252.0 (400.0)
Net income attributable to non -controlling interests 0.1 (0.6)
Non IFRS Diluted earnings per share attributable to parent company 1.79 (3.30)
Number of shares fully diluted 147,348 121,145
• SG&A up 61.0 M€
◦ Variable marketing expenses: 287 M€ or 12.4% of net bookings (208 M€ & 12.0% in FY23)
◦ Fixed structure costs: 403 M€ or 17.4% of net bookings (420 M€ & 24.2% in FY23)

FY24: R&D
*mostly Post -Launch content
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In € millions FY 2023 -24 FY 2022 -23
Depreciation of in -house software -related production 636.2 1,038.7
Depreciation of external software -related production and licenses 19.6 25.7
Royalties 26.8 24.0
Non Capitalized R&D & others * 343.2 306.0
Total R&D P&L 1,025.8 1,394.4
Capitalized in-house software -related production 874.6 971.9
Capitalized external software -related production and licenses 12.5 26.8 (excluding future commitments )
Royalties 26.8 24.0
Non Capitalized R&D & others * 342.0 306.0
Total R&D Cash 1,255.8 1,328.8

FY24 : CASH FLOWS & CLOSING CASH POSITION
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In € millions FY 2023 -24 FY 2022 -23
Non -IFRS Opening cash position (662.0) (282.7)
Cash flows from operation 90.8 (227.3)
Change in WCR (484.1) (126.9)
Cash flows from operating activities (393.3) (354.2)
Net investment in capital assets (116.1) (71.6)
Net free cash flow (509.4) (425.8)
Net acquisitions/disposals 0.0 (30.8)
Proceeds from issue of capital and other financial flows 40.4 (5.6)
Net acquisitions/disposals of own shares 11.5 100.4
Equity component (OCEANE) 131.2 35.7
Effect of exchange rate fluctuations 3.2 (53.4)
Decrease/(increase) in net debt (323.1) (379.3)
Closing cash position (985.1) (662.0)

UPDATE ON COST REDUCTION PLAN
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Total headcount down by more than 1,700** since end
Sept. 2022, while retention improved over the period
Fixed cost base standing at around €1.6 billion at end FY24,
representing a reduction of around €150 million
year -on -year*** of which:
• €112 million reduction in capitalized R&D
that will flow through the P&L in the coming years
• €38 million reduction already impacted the P&L
FY24 UPDATE
At least €200m reduction by FY26 vs. FY23 fixed cost base*
(€1.75bn)
COST REDUCTION
TARGET
*Includes P&L structure costs + fixed portion of COGS (customer service and supply chain) + cash R&D (excluding performance -base d royalties) and
excludes all profitability bonuses
**As of March 31, 2024
*** Including a favorable foreign exchange impact

AGENDA
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F Y 2 4 P E R F O R M A N C E
S T R AT E G I C F O C U S
F Y 2 5 TA R G E T S

• Experiences designed to plunge players at the
heart of an adventure through an immersive
world and captivating lore
• A dynamic market (€25 billion) with high barriers
to entry and attractive growth opportunities
fueled by technological disruptions, increased
demand for immersive experience and platform
diversification
STRATEGIC FOCUS SHARPENED ON TWO CORE VERTICALS
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Open World Adventure
• Experiences designed to captivate players over the
long -term through engaging and rewarding
gameplay, social interactions and frequent content
updates
• The largest addressable and growing market in
terms of players and value (€120 billion)
GaaS -native experiences
Profitable growth and recurrence prospects
Opportunity to build a sustainable competitive advantage by leveraging proprietary technologies
Why those segments ?
• Capitalize on our brands, secure strategic
territories and grow with multiplayer and mobile
• Build and grow recurrence through social driven
communities

AGENDA
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F Y 2 4 P E R F O R M A N C E
S T R AT E G I C F O C U S
F Y 2 5 TA R G E T S

Q1 & FY25 TARGETS
SOLID NET BOOKINGS GROWTH
SLIGHT INCREASE IN NON -IFRS OPERATING INCOME
GROWING NON -IFRS CASH FLOW FROM OPERATIONS LEADING TO POSITIVE FCF
FY25 e
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NET BOOKINGS: AROUND €275m Q1 FY25 e
Star Wars Outlaws
Assassin’s Creed Shadows
Strong FY25 lineup, including two of the most anticipated releases of the year and
expanding footprint on recurring and long -lasting GaaS -native experiences:
Rainbow Six Mobile
The Division Resurgence
XDefiant
Premium Free -to -play

APPENDIX

FY24: IFRS / NON -IFRS RECONCILIATION
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In € millions
except for per share data
FY 202 3-24 FY 2022 -23
IFRS Adjustments Non -IFRS IFRS Adjustments Non -IFRS
IFRS 15 Sales 2,300.9 1,814.3
Restatements related to IFRS 15 20.5 20.5 (74.9) (74.9)
Net bookings 2,321.4 1,739.5
Total Operating expenses (1,987.3) 67.3 (1,920.0) (2,400.1) 160.4 (2,239.6)
Stock -based compensation (59.6) 59.6 0.0 (62.0) 62.0 0.0
Non current operating income & expense (7.6) 7.6 0.0 (98.4) 98.4 0.0
Operating Income 313.6 87.8 401.4 (585.8) 85.6 (500.2)
Net Financial income (58.9) 18.4 (40.5) (18.1) 2.9 (15.2)
Income tax (96.8) (12.1) (108.8) 109.1 5.7 114.8
Consolidated Net Income 157.9 94.2 252.0 (494.7) 94.1 (400.6)
Net income attributable to owners of the parent
company 157.8 252.0 (494.2) (400.0)
Net income attributable to non -controlling interests 0.1 0.1 (0.6) (0.6)
Weighted average number of shares in issue 147,348,455 147,348,455 121,145,035 121,145,035
Diluted earnings per share attributable to parent
company (in €) 1.24 0.55 1.79 (4.0 8) 0.7 9 (3.30)