FY19 EARNINGS May 15, 2019

This slideshow may contain estimated financial data, information on future projects and

transactions and future financial results/performance. Such forward-looking data are provided for

target 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 were

approved by the Board of Directors on May 15, 2019 and have not been audited by the Statutory

Auditors. (Additional information is specified in the most recent Ubisoft Registration Document filed

on June 6, 2018 with the French Financial Markets Authority (l’Autorité des Marchés Financiers)).

D I S C L A I M E R

Yves Guillemot, President and Chief Executive Officer

Frédérick Duguet, Chief Financial Officer

DISCLAIMER

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3

STRONG EXECUTION OVER THE PAST 3 YEARS

NET BOOKINGS UP 46%

NON-IFRS OPERATING INCOME UP 164%

PROFITABILITY UP 10 PTS

RELEASE OF HIGH QUALITY EXPERIENCES

FAST DIGITAL TRANSFORMATION

SIGNIFICANTLY STRONGER RECURRING REVENUES

OVER THE PAST 3 YEARS

AGENDA

4

U P C O M I N G M A J O R I N D U S T R Y T R A N S F O R M AT I O N

F Y 1 9 P E R F O R M A N C E

B U I L D I N G A S U S TA I N A B L E O R G A N I S AT I O N

F Y 2 0 TA R G E T S

5

5 PILLARS OF LONG-TERM STRATEGY

FULL IP OWNERSHIP&

DIVERSE PORTFOLIO

DEEP RELATION WITHOUR COMMUNITIES

WIDE NETWORK OF STUDIOS

STRONG PRODUCTION CAPACITY

STRONG INTERNAL CULTURE

DEPENDABLE ONLINE SERVICES

& DISTRIBUTION PLATFORM

6

LONG-TERM VISIBILITY: FULL IP OWNERSHIP

Yes

Yes

Yes

Yes

Yes

IP OWNERSHIP : UBISOFT & PEERS’ TOP FRANCHISES

Assassin’s Creed

Far Cry

Rainbow Six

Watch Dogs

The Division

Yes

Yes

Yes

Yes

Call of Duty

World of Warcraft

Overwatch

HearthStone

Share profits with

dev.

No

Developed externally

Yes

Grand Theft Auto

Red Dead Redemption

NBA2K

Borderlands

Mafia

No

Yes

No

No

Yes

FIFA

Battlefield

Star Wars Battlefront

Madden

Apex Legends

Share profits with

dev.

Ghost Recon

For Honor

The Crew

Yes

Yes

Yes

YesDiablo

YesCandy Crush YesCivilization YesThe Sims

7

SIGNIFICANT SHAREHOLDERS VALUE CREATION

TOTAL SHAREHOLDER RETURN

Since IPO* 5-year 2-year 1-year

UBISOFT +4 272% +498% +82% -3%

Activision Blizzard +4 517% +137% -10% -31%

Take-Two +2 495%** +375% +55% -8%

Electronic Arts +1 233% +176% -2% -24%

NASDAQ +731% +112% +36% +13%

CAC40 Net Return +418% +45% +7% +1,6%

Euro Stoxx Media Supersector Return +160% +46% +8,4% +8%

Source: Bloomberg as of May 5, 2019

*Ubisoft IPO as of July 1, 1996

** Since IPO on April 15, 1997

AGENDA

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U P C O M I N G M A J O R I N D U S T R Y T R A N S F O R M AT I O N

F Y 1 9 P E R F O R M A N C E

B U I L D I N G A S U S TA I N A B L E O R G A N I S AT I O N

F Y 2 0 TA R G E T S

FY18

NET BOOKINGS

1 397 M€, + 39% yoy, 69% of total rev (vs 58% last year)

1 147 M€, + 39% yoy, 57% of total rev (vs 48% last year)

12-MONTHS

2 029 M€, + 17% yoy, (vs target of 2 050 M€)

BACK-CATALOG

DIGITAL REVENUES

PLAYER RECURRING INVESTMENT

644 M€, + 33% yoy, 32% of total rev (vs 28% last year))

9

FY19 : RECORD PERFORMANCE IN LINE WITH TARGETS

10

RECORD ENGAGEMENT & PRI

Q4 SELL TROUGH UNITS UP YOY

>1BN € CUMULATED REV LTD

45M PLAYERS, +40%

ESPORTS HOURS WATCHED : +31%

OUSTANDING PLAYER RECEPTIONEXCELLENT NPS

RECORD HIGHS FOR ENGAGEMENT PER PLAYER & SEASON PASS

UPLAY SALES x 10

FY19: >100 MILLION UNIQUE ACTIVE CONSOLE & PC PLAYERS

BEST UNITS SELLING UBISOFT GAME ON CURRENT GEN

STRONG GROWTH

OF THE FRANCHISE

MAUs UP 16% FOR CONSOLES & PC GAMES

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MORE RECURRING, MORE VISIBILITY, LESS HIT-DRIVEN

NET BOOKINGS (M€)

AND BACK-CATALOG (IN % OF NET BOOKINGS)

FROM 12% IN FY10 TO 57% IN FY19

12% 15% 20% 16% 23% 16%25%

45%

FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

48%

871

1,039 1,061

1,256

1,007

1,4641,394

1,460

1,732

2,029

57%

FY14 FY15 FY16 FY17 FY18 FY19 Physical

Digital Distribution

Player RecurringInvestment**

** Includes ingame items, DLCs/season pass,subscription & advertising

383(26%)*

269

447(47%)*

315

132

729(50%)*

DIGITAL SPLIT(in M€)

425

304

TOTAL NET BOOKINGS SPLIT DIGITAL 69%

31% 37%

32%

522

483

1 397(69%)*

FY19: REMARKABLE DIGITAL TRANSFORMATION

113

12

1 005(58%)* 644

752

10886

195(19%)*

*Digital as % of total net bookings

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FY19: STRONG EXPANSION IN HIGH-POTENTIAL SEGMENTS

* On PC & consoles in FY18

PC UP 79%REPRESENTS 27% OF TOTAL REV

VS 18% LAST YEAR

UPLAY UP 150%

MOBILE UP 73%REACHED 153 M€ 8% OF TOTAL REV

ASIA UP 62%

STRONG APPETITE FOR UBISOFT PREMIUM & FTP GAMES

FY19: DELIVERING ON THE 3-YEAR PLAN

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RECORD NON-IFRS OPERATING INCOME: 446 M€, up 49% vs target of around 440 M€

RECORD NON-IFRS OPERATING MARGIN OF 22%, up 4.7 pts

RECORD FREE CASH FLOW: 310 M€ vs target of around 300 M€

FY19

Gross margin up 265 M€ & 0.9 point: strong net bookings and digital partly compensated by Starlink

R&D up 39 M€ & down 3.7 points

SG&A up 79 M€ & down 0.1 point:

variable marketing expenses: 296 M€ or 14.6% of net bookings (233 M€ & 13.5% in FY18)

fixed structure costs: 257 M€ or 12.7% of net bookings (241 M€ & 13.9% in FY18)

Net Financial income: includes 13 M€ non-cash/non-taxable gain related to the 200 m€ total return swap contract

FY19: NON-IFRS P&L

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€ million, except for per share data 2018-19 2017-18

% %

Sales 1 845,5 NA

Deferred services / other differences between the 2 standards 183,1 NA

Net bookings 2 028,6 1 731,9

Gross profit 1 699,7 83,8 1 435,1 82,9

Non-IFRS R&D expenses (700,4) (34,5) (661,1) (38,2)

Non-IFRS Selling expenses (405,0) (20,0) (335,9) (19,4)

Non-IFRS G & A expenses (148,3) (7,3) (138,0) (8,0)

Non-IFRS SG & A expenses (553,3) (27,3) (473,9) (27,4)

Non IFRS operating income 446,0 22,0 300,1 17,3

Net Financial Income (2,4) (5,7)

Share in profit of associates 0,3 (0,2)

Income Tax (110,4) (73,6)

Non IFRS Net Income 333,5 220,6

Non IFRS Diluted earnings per share 2,80 1,80

Number of shares fully diluted 119 330 122 444

6% increase in total R&D P&L: notably impacted by good costs control on post-launch content

13% increase in capitalized R&D: building significant long term growth opportunities

101 M€ gap between total R&D P&L and total R&D Cash: +42M€ yoy

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FY19: R&D

€ million 2018-19 2017-18

Depreciation of in-house software-related production 466,7 438,1

Depreciation of external software-related production and licenses 20,0 24,1

Royalties 16,2 15,5

Non Capitalized R&D & others* 197,4 183,4

Total R&D P&L 700,4 661,1

Capitalized in-house software-related production 573,9 498,5

Capitalized external software-related production and licenses13,8 22,7

(excluding future commitments)

Royalties 16,2 15,5

Non Capitalized R&D & others* 197,4 183,4

Total R&D Cash 801,3 720,2

*mostly Post-Launch content

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FY19: IFRS / NON-IFRS RECONCILIATION

Stock-based compensation: 55 M€

Non-current operating expenses: 49 M€ related to brand and goodwill depreciation

Net Financial income: 8 M€ non-cash charge related to the 400 M€ convertible loan

Tax rate: 25%, higher than expected due to impact from US tax reform

€ million,

except for per share data

2018-19 2017-18

IFRS Adjustment Non IFRS IFRS Adjustment Non IFRS

Sales 1 845,5 1 845,5 1 731,9 1 731,9

Deferred services / other differences

between the 2 standards183,1 NA

Net bookings 2 028,6 1 731,9 1 731,9

Total Operating expenses (1 686,5) 103,9 (1 582,6) (1 509,6) 77,8 (1 431,8)

Stock-based compensation (54,7) 54,7 0,0 (39,6) 39,6 0

Non-current operating income

and expenses(49,2) 49,2 (0,0) (38,2) 38,2 0

Operating Income 159,0 287,0 446,0 222,3 77,8 300,1

Net Financial income (10,9) 8,4 (2,4) (13,4) 7,7 (5,7)

Share in profit of associates 0,3 0,3 (0,2) (0,2)

Income tax (48,4) (61,9) (110,4) (69,2) (4,4) (73,6)

Net Income 100,0 233,6 333,5 139,5 81,1 220,6

Diluted earnings per share 0,89 1,91 2,80 1,18 0,62 1,80

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85 M€ increase in CF from operations: Non-IFRS Net Income 113 M€ growth compensated by 42 M€ increase

of R&D P&L/Cash gap

85 M€ decrease in WCR

87 M€ of acquisitions and earn-out payment

230 M€ proceeds from issue of capital: 130 M€ related to employee share plan + modified accounting

treatment on 100 M€ deposit invested on total return swap contract (as disclosed in H1)

202 M€ net share acquisition: 3m shares buy-back on November 9

FY19: CASH FLOWS & CLOSING CASH POSITION

€ million 2018-19 2017-18

Opening cash position (548,1) (80,4)

Cash flows from operations 300,0 214,9

Change in WCR 84,7 (45,0)

Cash flows from operating activities 384,7 169,9

Net investment in capital assets (74,4) (59,3)

Net free cash flow 310,3 110,5

Net acquisitions/disposals (86,5) (77,6)

Proceeds from issue of capital and other financial flows 230,2 (52,8)

Net acquisitions/disposals of own shares (201,9) (411,5)

Effect of exchange rate fluctuations 10,8 (27,9)

Equity component (8,6) (8,4)

Decrease/(increase) in net debt 254,3 (467,6)

Closing cash position (293,8) (548,1)

AGENDA

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U P C O M I N G M A J O R I N D U S T R Y T R A N S F O R M AT I O N

F Y 1 9 P E R F O R M A N C E

B U I L D I N G A S U S TA I N A B L E O R G A N I S AT I O N

F Y 2 0 TA R G E T

UPCOMING INDUSTRY MAJOR TRANSFORMATION

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TOTAL ADDRESSABLE MARKET:5 BILLION GAMERS IN THE NEXT 10 YEARS

SILOS BETWEEN PLATFORMS ARE FALLING

21

CLOUD GAMING

DEVELOPERS WILL ACCESS

UNLIMITED MACHINE POWER IN THE CLOUD

TO CREATE UNIQUE EXPERIENCES

STREAMING

HIGH QUALITY BIG SCREEN EXPERIENCES

AT LOWER ENTRY COST TO A BROADER POPULATION

SEAMLESS MULTISCREEN GAMING TO LEVERAGE

MOBILE GLOBAL REACH

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ASIA

HUGE GROWING MARKET

UBISOFT GAMES & LIVE SERVICES HAVE BEEN REACHING A WIDER AUDIENCE

(CHINA, JAPAN, KOREA…)

STRONGER PC OFFERING + UPCOMING ADAPTATION OF UBISOFT FRANCHISES ON MOBILE

SILOS BETWEEN GEOGRAPHIES ARE FALLING

ACCELERATION OF OUR INVESTMENTS TO SEIZE MAJOR OPPORTUNITIES

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RAMP UP OUR CAPABILITIES FOR THEUPCOMING GENERATION OF CONSOLES

ENTER INTO NEW GAMING GENRES,SEGMENTS & BUSINESS MODELS,

CREATE NEW IPs & NEW EXPERIENCES

BRING OUR ESTABLISHED PC & CONSOLES FRANCHISES TO MOBILE &

TO A MUCH WIDER AUDIENCE

CAPTURE THE STREAMING &

CLOUD GAMING OPPORTUNITIES

PURSUE THE DEVELOPMENT OF OUR UPLAY PLATFORM

& ECOMMERCE ECOSYSTEM

PURSUE THE DEVELOPMENT OFARTIFICIAL INTELLIGENCE SOLUTIONS

DRIVE AUDIENCE & ENGAGEMENT THROUGH BIGGER GAMES & POST LAUNCH CONTENT

AGENDA

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U P C O M I N G M A J O R T R A N S F O R M AT I O N I N T H E I N D U S T R Y

F Y 1 9 P E R F O R M A N C E

B U I L D I N G A S U S TA I N A B L E O R G A N I S AT I O N

F Y 2 0 TA R G E T

DIGITAL: >70% of net bookings

PRI: in absolute value → solid increase

as a % of net bookings > FY19

BACK-CATALOG: ~50% of net bookings

NET BOOKINGS: ~2 185 M€ / Q1 NET BOOKINGS: ~270 M€

NON-IFRS OPERATING INCOME: ~480 M€

FY20 : 8% NET BOOKINGS & OPERATING INCOME GROWTH

.

.

NEW RELEASES: strong growth with 4 new AAA titles

+ 3 unannounced titles (fiscal Q4)

FY20

25

(October 4th)

THANK YOU !