Ubisoft Entertainment FY2025 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 June 20 , 2024 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 5 P E R F O R M A N C E
G R O U P T R A N S F O R M AT I O N
F Y 2 6 TA R G E T S

FY18
NET BOOKINGS
€1,585m , -20 % YoY, 86 % of total net bookings
€1,296m , -13 % YoY , 70 % of net bookings
12 -MONTH S
€1,846m , -20 % YoY
BAC K-CAT AL O G
DIGITAL REVENUES
PLAYER
RECURRING
IN V ES TME N T
€806m , -8% YoY, 44 % of total net bookings )
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FY25: NET BOOKINGS

FY25 PERFORMANCE
▪ FY2024 -25 performance broadly in line with targets :
▪ Net bookings of €1.85bn, slightly below objective, mainly reflecting lower than expected partnerships, notably due to a
timing impact
▪ Non -IFRS operating income in line with guidance
▪ Free Cash Flow ahead of target at €128m, driven by cash -flow from operating activities of €169m
▪ AC Shadows prompted very strong praise from player s and delivered a solid performance , highlighting the strength of the brand
▪ Solid activity and engagement metrics across Console & PC in FY25:
― Playtime and Session Days broadly stable year -on -year
― Assassin’s Creed and Rainbow Six brands each sustained around 30 million active players for the 4th consecutive year
― Far Cry stood at around 20 million per year over the same period
― Other brands continued to drive strong community appeal, with more than 100m unique active players
▪ In Q4, Top 10 brands saw net bookings growth year -over -year
KEY HIGHLIGHTS
GROUP PURSUES TRANSFORMATION
▪ Group plans to announce a new organization by the end of the year
▪ Creation of New Subsidiary to accelerate growth of 3 leading IPs and Tencent Transaction
to fully deleverage Ubisoft
▪ Product roadmap optimization towards more evergreen offering
COST REDUCTION PROGRAM
▪ Initial plan achieved ahead of schedule and slightly above the €200m objective
▪ Additional cost reduction of at least €100m to be achieved over the next two years
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FY25: NON -IFRS P&L
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in € millions, except for per share data FY 2024 -25 FY 2023 -24
% %
IFRS15 Sales 1,899.2 2,300.9
Restatements related to IFRS15 (52.9) 20.5
Net bookings 1,846.4 2,321.4
Gross profit based on net bookings 1,643.6 89.0 2,117.1 91.2
Non -IFRS R&D expenses (1,029.2) (55.7) (1,025.8) (44.2)
Non -IFRS Selling expenses (371.3) (20.1) (409.9) (17.7)
Non -IFRS G&A expenses (258.1) (14.0) (280.1) (12.1)
Non -IFRS SG&A expenses (629.4) (34.1) (689.9) (29.7)
Non IFRS current operating income (15.1) (0.8) 401.4 17.3
Net Financial Income (37.5) (40.5)
Income Tax (17.9) (108.8)
Non IFRS consolidated net income (70.5) 252.0
Net income attributable to owners of the parent company (70.7) 252.0
Net income attributable to non -controlling interests 0.2 0.1
Non IFRS Diluted earnings per share attributable to parent company (0.56) 1.79
Number of shares fully diluted 127,131 147,348
• SG&A down 61 M€
◦ Variable marketing expenses: 272 M€ or 14.7% of net bookings (287 M€ & 12.4% in FY24)
◦ Fixed structure costs: 357 M€ or 19.4% of net bookings (403 M€ & 17.4% in FY24)

FY25: R&D
*mostly Post -Launch content
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In € millions FY 2024 -25 FY 2023 -24
Depreciation of in -house software -related production 562.8 636.2
Depreciation of external software -related production and licenses 27.1 19.6
Royalties 27.7 26.8
Non Capitalized R&D & others * 411.6 343.2
Total R&D P&L 1,029.2 1,025.8
Capitalized in-house software -related production 782.2 874.6
Capitalized external software -related production and licenses 14.7 12.5 (excluding future commitments )
Royalties 27.7 26.8
Non Capitalized R&D & others * 411.0 342.0
Total R&D Cash 1,235.6 1,255.8

FY25 : CASH FLOWS & CLOSING CASH POSITION
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In € millions FY 202 4-25 FY 2023 -24
Non -IFRS Opening cash position (985. 1) (662.0)
Cash flows from operation (240.0) 90.8
Change in WCR 408.9 (484.1)
Cash flows from operating activities 168.8 (393.3)
Net investment in capital assets (41.2) (116.1)
Net free cash flow 127.7 (509.4)
Net acquisitions/disposals 0.0 0.0
Proceeds from issue of capital and other financial flows 30.1 40.4
Net acquisitions/disposals of own shares 0.0 11.5
Equity component (OCEANE) (25.2) 131.2
Effect of exchange rate fluctuations (32.6) 3.2
Decrease/(increase) in net debt 100.1 (323.1)
Closing cash position (885.1) (985.1)

AGENDA
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F Y 2 5 P E R F O R M A N C E
G R O U P T R A N S F O R M AT I O N
F Y 2 6 TA R G E T S

• Ubisoft is continuing to execute on its strategic
focus around two core verticals :
• Open World Adventures
• GaaS -native experiences
• Objective to transform its portfolio with more
evergreen offerings
• To support this vision, the Group is currently
working on reshaping its organization with the
objective to:
• better meet player needs
• deliver superior game quality
• drive disciplined capital allocation
• The Group targets to announce the new
organization by the end of the year
GROU P’S PROFOUND TRANSFORMATION
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Reshaping the organization and
optimizing product roadmap
• Creation of a New Subsidiary to play a pivotal role
in accelerating the growth of iconic IPs , Assassin’s
Creed, Rainbow Six, and Far Cry, that are well
positioned in high -growth markets like Open
World and LiveOps and served by a very powerful
5-year line -up to come
• Focus on building brand ecosystems capable of
becoming evergreen, billion -euro franchises . This
includes:
₋ Improving the quality of narrative -driven
solo experiences
₋ Expanding live service offerings with richer
multiplayer features and more frequent
content updates
₋ Significantly enhancing content creation by
leveraging Ubisoft’s technological stack
₋ Scaling into underpenetrated markets such
as mobile and China
New Subsidiary to drive growth
of three iconic IPs

UPDATE ON COST REDUCTION PLAN
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• Plan achieved ahead of schedule and slightly above the objective
• Total headcount decrease of around 3,000** since end Sept.
2022, while attrition is back to Ubisoft’s lowest record levels
• Fixed cost base standing at around €1.55 billion at end FY25,
representing a reduction of around €205 million and 12% vs.
FY2022 -23 fixed cost base ***
FY25 UPDATE
• At least €200m reduction by FY26 vs. FY23 fixed cost base*
(€1.75bn)
INITIAL
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, 2025
*** Including a favorable foreign exchange impact
• At least €100m reduction to be achieved over the next two years FURTHER
COST REDUCTION

AGENDA
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F Y 2 5 P E R F O R M A N C E
G R O U P T R A N S F O R M AT I O N
F Y 2 6 TA R G E T S

OUTLOOK
• STABLE NET BOOKINGS YEAR -ON -YEAR
• APPROXIMATELY BREAK -EVEN NON -IFRS OPERATING INCOME
• NEGATIVE FREE CASH FLOW
• FOLLOWING THE CLOSING OF THE TENCENT TRANSACTION, THE GROUP EXPECTS
TO MAINTAIN A CONSOLIDATED NET DEBT POSITION OF AROUND ZERO
FY26 e
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• NET BOOKINGS: AROUND €310m Q1
FY26 e
Beyond
FY26
The Group expects to return to positive non -IFRS EBIT and Free Cash Flow generation in FY27 and to
see significant content coming from its largest brands in FY27 and FY28
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APPENDIX

FY25: IFRS / NON -IFRS RECONCILIATION
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In € millions
except for per share data
FY 202 -24 FY 2023 -24
IFRS Adjustments Non -IFRS IFRS Adjustments Non -IFRS
IFRS 15 Sales 1,899.2 2,300.9
Restatements related to IFRS 15 (52.9) 20.5 20.5
Net bookings 1,846.4 2,321.4
Total Operating expenses (1,981.9) 120.5 (1,861.4) (1,987.3) 67.3 (1,920.0)
Impact of Financing (13.4) 13.4 0.0 0.0 0.0 0.0
Stock -based compensation (54.5) 54.5 0.0 (59.6) 59.6 0.0
Non current operating income & expense (52.6) 52.6 0.0 (7.6) 7.6 0.0
Operating Income (82.6) 67.6 (15.1) 313.6 87.8 401.4
Net Financial income (64.0) 26.5 (37.5) (58.9) 18.4 (40.5)
Income tax (12.1) (5.8) (17.9) (96.8) (12.1) (108.8)
Consolidated Net Income (158.7) 88.3 (70.5) 157.9 94.2 252.0
Net income attributable to owners of the parent
company (159.0) (70.7) 157.8 252.0
Net income attributable to non -controlling interests 0.2 0.2 0.1 0.1
Weighted average number of shares in issue 127,130,543 127,130,543 147,348,455 147,348,455
Diluted earnings per share attributable to parent
company (in €) (1.25) 0.69 (0.56) 1.24 0.55 1.79