Ubisoft Entertainment FY2024 Q2 Earnings Release

H1 FY24 EARNINGS
October 26 , 2023

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 Corporate Finance Officer

AGENDA
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H 1 F Y 2 4 P E R F O R M A N C E
F Y 2 4 TA R G E T S

FY18
NET BOOKINGS
€717m , +12% YoY, 87 % of total net bookings
€695m , +37% YoY , 85 % of net bookings
6-MONTH S
€822m , +17.6 % YoY
BAC K-CAT AL O G
DIGITAL REVENUES
PLAYER
RECURRING
IN V ES TME N T
€514m , +22% YoY, 63 % of total net bookings )
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H1 FY24: RECORD NET BOOKINGS

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KEY HIGHLIGHTS
MUCH STRONGER -THAN -EXPECTED Q2 PERFORMANCE
▪ Q2 total net bookings of €555m , well above target of approximately €350m.
▪ Outperformance notably driven by much stronger than expected revenues
from back -catalog thanks to both its underlying overperformance and
monetization through partnerships
▪ Overperformance also reflects a record launch for The Crew Motorfest and
higher Assassin’s Creed Mirage pre shipments
▪ Remarkable performance of Rainbow Six Siege: High double digits net
bookings growth, continued strong activity and solid acquisition
▪ Assassin’s Creed back -catalog sustained performance on the back of the
Assassin’s Creed Mirage launch
▪ The Crew 2 Exceptional engagement with a record month in terms of MAUs
contributing to record franchise quarter activity.
ROBUST ACTIVITY IN H1
▪ Unique active players : 94m , slightly up YoY
▪ Monthly Active Users: 36m, slightly down YoY

H1 FY24: NON -IFRS P&L
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in € millions, except for per share data H1 2023 -24 H1 2022 -23
% %
IFRS15 Sales 836.0 731.2
Deferred revenue related to IFRS15 standard (13.6) (31.7)
Net bookings 822.4 699.4
Gross profit based on net bookings 734.1 89.3 618.1 88.4
Non -IFRS R&D expenses (400.7) (48.7) (452.2) (64.7)
Non -IFRS Selling expenses (160.6) (19.5) (154.9) (22.2)
Non -IFRS G&A expenses (129.3) (15.7) (149.9) (21.4)
Non -IFRS SG&A expenses (289.9) (35.2) (304. 8) (43.6)
Non IFRS current operating income 43.5 5.3 (139.0) (19.9)
Net Financial Income (22.6) (0.5)
Income Tax (19.4) 28.3
Non IFRS consolidated net income 1.6 (111.1)
Net income attributable to owners of the parent company 1.7 (111.0)
Net income attributable to non -controlling interests (0.1) (0.1)
Non IFRS Diluted earnings per share attributable to parent company 0.01 (0.93)
Number of shares fully diluted 144,041 120,001
• SG&A down 15.0 M€
◦ Variable marketing expenses: 101 M€ or 12.2% of net bookings (86 M€ & 12.2% in H1 FY23)
◦ Fixed structure costs: 189 M€ or 23.0% of net bookings (219 M€ & 31.3% in H1 FY23)

H1 FY24: R&D
*mostly Post -Launch content
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In € millions H1 2023 -24 H1 2022 -23
Depreciation of in -house software -related production 224.9 273 .2
Depreciation of external software -related production and licenses 4.6 2.8
Royalties 9.4 12 .4
Non Capitalized R&D & others * 161.8 163 .9
Total R&D P&L 400.7 452 .2
Capitalized in-house software -related production 447.1 483.2
Capitalized external software -related production and licenses 8.6 13.0 (excluding future commitments )
Royalties 9.4 12 .4
Non Capitalized R&D & others * 161.8 163.9
Total R&D Cash 626.9 672 .5

H1 FY24 : CASH FLOWS & CLOSING CASH POSITION
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In € millions H1 2023 -24 H1 2022 -23
Non -IFRS Opening cash position (662.0) (282 .7)
Cash flows from operation (188.7) (292 .5)
Change in WCR (72.6) 224 .1
Cash flows from operating activities (261.3) (68 .3)
Net investment in capital assets (22.8) (41 .7)
Net free cash flow (284.2) (110 .0)
Net acquisitions/disposals 0.0 (30 .7)
Proceeds from issue of capital and other financial flows 40.3 (3.8)
Net acquisitions/disposals of own shares 12.4 100 .4
Equity component (OCEANE) (7.3) (2.7)
Effect of exchange rate fluctuations 20.0 (1.7)
Decrease/(increase) in net debt (218.8) (48 .6)
Closing cash position (880.8) (331 .3)

AGENDA
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H 1 F Y 2 4 P E R F O R M A N C E
F Y 2 4 TA R G E T S

Q3 & FY24 TARGETS
NET BOOKINGS: Strong growth
NON -IFRS OPERATING INCOME: Approximately €400m
FY24 e
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NET BOOKINGS: Approximately €610m Q3 FY24 e
Avatar: Frontiers of Pandora
Assassin’s Creed Mirage
Assassin’s Creed Nexus VR
Just Dance 2024 Edition
Prince of Persia The Lost Crown
Skull and Bones
The lineup for the remainder of the fiscal year reflects key strategic pillars:
New releases across big brands and long -lasting Live games
Rainbow Six Mobile
The Division Resurgence
XDefiant
Premium Free -to -play

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APPENDIX

H1 FY24: IFRS / NON -IFRS RECONCILIATION
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In € millions
except for per share data
H1 202 3-24 H1 2022 -23
IFRS Adjustments Non -IFRS IFRS Adjustments Non -IFRS
IFRS 15 Sales 836.0 731.2
Deferred revenues related to IFRS 15 (13.6) (31.7)
Net bookings 822.4 699.4
Total Operating expenses (819.9) 41.0 (778.9) (946.5) 108.1 (838.4)
Stock -based compensation (40.0) 40.0 0.0 (46.3) 46.3 0.0
Non current operating income & expense (1.0) 1.0 0.0 (61.8) 61.8 0.0
Operating Income 16.1 27.4 43.5 (215.3) 76.4 (139.0)
Net Financial income (29.9) 7.3 (22.6) (3.2) 2.7 (0.5)
Income tax (20.7) 1.3 (19.4) 28 .3 0.0 28 .3
Consolidated Net Income (34.4) 36.0 1.6 (190 .2) 79. 1 (111 .1)
Net income attributable to owners of the parent
company (34.3) 1.7 (190 .1) (111 .0)
Net income attributable to non -controlling interests (0.1) (0.1) (0.1) (0.1)
Weighted average number of shares in issue 123,180,752 20,860,712 144,041,464 120,001,344 120,001,344
Diluted earnings per share attributable to parent
company (in €) (0.28) 0.29 0.01 (1.5 8) 0.66 (0. 93 )