Ubisoft Entertainment FY2025 Q2 Earnings Release

H1 FY25 EARNINGS
October 30 , 2024

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 Corporate Finance Officer

AGENDA
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H 1 F Y 2 5 P E R F O R M A N C E
F Y 2 5 TA R G E T S

FY18
NET BOOKINGS
€527m , -27 % YoY, 82 % of total net bookings
€494m , -29 % YoY , 77 % of net bookings
6-MONTH S
€642m , -22 % YoY
BAC K-CAT AL O G
DIGITAL REVENUES
PLAYER
RECURRING
IN V ES TME N T
€313m , -39 % YoY, 49 % of total net bookings )
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H1 FY25

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STRENGTH OF BRAND PORTFOLIO AND LIVE SERVICES AND SOLID
ENGAGEMENT THROUGH CATALOGUE OF GAMES
Q2
▪ Total net bookings of €352m , in line with revised guidance
▪ Excluding partnerships, back -catalog continued to perform solidly with net bookings up 12% YoY
▪ Solid R6S performance, despite strong comparable base
▪ Other Live titles across the portfolio demonstrated strong engagement and activity
▪ The Crew franchise attracted over 8 million active players in Q2 and saw strong growth in engagement
▪ Riders Republic enjoyed a strong uplift in session days and profitability and surpassed 10m players
▪ Ghost Recon franchise grew both in terms of activity and net bookings over H1
H1
▪ Strong activity metrics across Consoles and PC
▪ MAUs of 37m, up 3% YoY
▪ Playtime up 9% YoY
▪ Session Days up 6% YoY
▪ Excluding partnerships, back -catalog net bookings up 12% YoY
PAST 10 YEARS
▪ New milestones in terms of consumer spending metrics underlining the long -term value of Ubisoft’s
diverse portfolio of brands and Live services:
▪ AC franchise has generated around €4bn
▪ Rainbow Six Siege has generated over €3.5bn
▪ Far Cry has topped around €2bn
▪ Including The Division, Ghost Recon and Just Dance, 6 Ubisoft brands have generated more than €1bn each
LAST TWELVE MONTHS
▪ 138m Unique Players over last 12 months, up 4% YoY
▪ AC franchise and R6S each benefitted from more than 30m unique active players

H1 FY25: NON -IFRS P&L
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in € millions, except for per share data H1 2024 -25 H1 2023 -24
% %
IFRS15 Sales 671.9 836.0
Restatements related to IFRS15 standard (29.7) (13.6)
Net bookings 642.3 822.4
Gross profit based on net bookings 552.0 85.9 734.1 89.3
Non -IFRS R&D expenses (503.5) (78.4 ) (400.7) (48.7)
Non -IFRS Selling expenses (178.4) (27.8 ) (160.6) (19.5)
Non -IFRS G&A expenses (122.2) (19.0 ) (129.3) (15.7)
Non -IFRS SG&A expenses (300.6) (46.8 ) (289.9) (35.2)
Non IFRS current operating income (252.1) (39.3) 43.5 5.3
Net Financial Income (22.9) (22.6)
Income Tax 67.1 (19.4)
Non IFRS consolidated net income (207.9) 1.6
Net income attributable to owners of the parent company (208.1) 1.7
Net income attributable to non -controlling interests 0.2 (0.1)
Non IFRS Diluted earnings per share attributable to parent company (1.64) 0.01
Number of shares fully diluted 127,027 144,041
• SG&A up 10.7 M€
◦ Variable marketing expenses: 128 M€ or 19.9% of net bookings (101 M€ & 12.2% in H1 FY24)
◦ Fixed structure costs: 173 M€ or 26.9% of net bookings (189 M€ & 23.0% in H1 FY24)

H1 FY25: R&D
*mostly Post -Launch content
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In € millions H1 2024 -25 H1 2023 -24
Depreciation of in -house software -related production 275.7 224.9
Depreciation of external software -related production and licenses 8.8 4.6
Royalties 9.9 9.4
Non Capitalized R&D & others * 209.1 161.8
Total R&D P&L 503.5 400.7
Capitalized in-house software -related production 386.7 447.1
Capitalized external software -related production and licenses 7.1 8.6 (excluding future commitments )
Royalties 9.9 9.4
Non Capitalized R&D & others * 208.8 161.8
Total R&D Cash 612.5 626.9

H1 FY25 : CASH FLOWS & CLOSING CASH POSITION
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In € millions H1 2024 -25 H1 2023 -24
Non -IFRS Opening cash position (985.1) (662.0)
Cash flows from operation (290.9) (188.7)
Change in WCR 184.9 (72.6)
Cash flows from operating activities (106.1) (261.3)
Net investment in capital assets (20.2) (22.8)
Net free cash flow (126.3) (284.2)
Net acquisitions/disposals 0.0 0.0
Proceeds from issue of capital and other financial flows 33.3 40.3
Net acquisitions/disposals of own shares 0.0 12.4
Equity component (OCEANE) (13.0) (7.3)
Effect of exchange rate fluctuations (11.0) 20.0
Decrease/(increase) in net debt (117.0) (218.8)
Closing cash position (1,102.2) (880.8)

COST REDUCTION PLAN WELL ON TRACK
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• H1 FY25 fixed cost base standing at around €770 million, down
€46 million year -on -year
• R&D investment expenditures down 2% vs. last year, driven by
capitalized spending being down by 13.5% while structure costs
were reduced by 8.5%
H1 FY25 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 September 30, 2024
*** Including a favorable foreign exchange impact
• Total headcount down by more than 2,000** over 24 months,
while retention is coming back to historical -best levels
• H1 FY25 fixed cost base down €106 million vs H1 FY23 meaning
that on an annualized basis , we have already achieved more than
€200 million savings ***
COMPARISON
VS LAST YEAR
COMPARISON
VS 2 YEARS AGO

AGENDA
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H 1 F Y 2 5 P E R F O R M A N C E
F Y 2 5 TA R G E T S

Q3 & FY25 TARGETS
NET BOOKINGS: Around €1.95bn
NON -IFRS OPERATING INCOME & FREE CASH FLOW: Around breakeven
FY25 e
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NET BOOKINGS: Approximately €380m Q3 FY25 e

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APPENDIX

H1 FY25: IFRS / NON -IFRS RECONCILIATION
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In € millions
except for per share data
H1 202 4-25 H1 202 3-24
IFRS Adjustments Non -IFRS IFRS Adjustments Non -IFRS
IFRS 15 Sales 671.9 836.0
Restatements related to IFRS 15 (29.7) (13.6)
Net bookings 642.3 822.4
Total Operating expenses (943.7) 49.3 (894.4) (819.9) 41.0 (778.9)
Financing component 6.2 (6.2) 0.0
Stock -based compensation (35.4) 35.4 0.0 (40.0) 40.0 0.0
Non current operating income & expense (20.2) 20.2 0.0 (1.0) 1.0 0.0
Operating Income (271.8) 19.7 (252.1) 16.1 27.4 43.5
Net Financial income (37.0) 14.0 (22.9) (29.9) 7.3 (22.6)
Income tax 62.2 4.9 67.1 (20.7) 1.3 (19.4)
Consolidated Net Income (246.5) 38.6 (207.9) (34.4) 36.0 1.6
Net income attributable to owners of the parent
company (246.7) (208.1) (34.3) 1.7
Net income attributable to non -controlling interests 0.2 0.2 (0.1) (0.1)
Weighted average number of shares in issue 127,026,713 127,026,713 123,180,752 20,860,712 144,041,464
Diluted earnings per share attributable to parent
company (in €) (1.94) 0.30 (1.64) (0.28) 0.29 0.01