INVESTOR DAY - ubistatic19-a.akamaihd.net · February 18th2016. INVESTOR DAY. This statement may contain estimated financial data, information on future projects and transactions

February 18th 2016

I N V E S T O R D A Y

This statement may contain estimated financial data, information on future projects and transactions and future business results/performance. Such forward-looking data are provided for estimation 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 been presented to the Board of Directors and have not been audited by the Statutory Auditors. (Additional information is specified in the most recent Ubisoft Registration Document filed on July 2, 2015 with the French Financial Markets Authority (l’Autorité des marchés financiers)).

D I S C L A I M E R

3

AGENDA

YVES GUILLEMOT PRESIDENT & CEO

ALAIN MARTINEZ CHIEF FINANCIAL OFFICER

MEDIUM TERM PLAN

INTRODUCTORY REMARKS

DRIVING ENGAGEMENT WITH LIVE & CONTENT ACTIVITIES ANNE BLONDEL

VP LIVE OPERATIONS

HOW WE CAN REACH A WIDER AUDIENCE JOHN PARKES

MANAGING DIRECTOR FRANCE

I N T R O D U C T O R Y R E M A R K S

Yves Guillemot, PRESIDENT & CEO

4

5

THE CREATION OF ORIGINAL IPS AT THE HEART OF OUR SUCCESS

6

REVENUES: 2.2BN€, +60%

FY19 NON-IFRS OPERATING INCOME MARGIN: 20%

X~3 in absolute value

SIGNIFICANT TOPLINE & PROFIT GROWTH AHEAD

FREE CASH FLOW: ~300M€

BEFORE NOW HIT DRIVEN & CYCLICAL

FIRE & FORGET

LOW ENGAGEMENT

GAMES’ SHORT LIFE CYCLE

NO DIRECT RELATION TO GAMERS

LOW BARRIERS TO ENTRY

FRAGMENTED MARKET

MORE RECURRING & DEPENDABLE

YEAR ROUND & MULTI-YEAR SERVICE

HIGH ENGAGEMENT

GAMES’ LONG LIFE CYCLE

CONSTANT & DIRECT RELATION WITH PLAYERS

VERY HIGH BARRIERS TO ENTRY

FEW BIG COMPETITORS

A TRANSFORMING INDUSTRY: MORE DEPENDABLE

7

BIGGER HITS & DIGITAL REVENUES

RECIPE FOR 30% PROFITABILITY?

A TRANSFORMING INDUSTRY: MORE RECURRING & PROFITABLE

8

WE ARE EMBRACING THAT PATH

STRONG EXECUTION ON BUILDING

THE BEST STABLE OF FRANCHISES

THANKS TO SUPER EFFICIENT & PRODUCTIVE STUDIOS

BIGGER HITS = A WIDER AUDIENCE

MULTICENTRIC

9

KEY DRIVER TO GREAT ENGAGEMENT 1. MORE STRONG MULTIPLAYER TITLES

DIGITAL REVENUES = GROWING ENGAGEMENT

MULTICENTRIC

FY17 NEW AAA IP

10

KEY DRIVER TO GREAT ENGAGEMENT

2. YEAR ROUND, MULTI-YEAR LIVE CONTENT & SERVICES

11

DIGITAL REVENUES = GROWING ENGAGEMENT

ATTRACT MILLIONS OF NEW PLAYERS

AT LOW COSTS PER ACQUISITION

RAISE THE AWARENESS OF OUR FRANCHISES

CONSUMER PRODUCTS

12

TV SERIES MOVIES THEME PARKS

AN AGILE & LONG-TERM APPROACH

13

XXX

ASSASSIN’S CREED

TOM CLANCY’S SPLINTER CELL TOM CLANCY’S GHOST RECON RABBIDS THE MOVIE

WATCH DOGS RABBIDS TV SHOW

SELECTING THE BEST PARTNERS TO MAXIMIZE OUR FRANCHISES’ POTENTIAL

AN UNBIASED APPROACH

14

OUR CAPACITY

TO MANAGE UBISOFT

IN AN AGILE, LONG-TERM & UNBIASED WAY

TO GENERATE THE BEST RETURN

FOR OUR SHAREHOLDERS

WHAT IS AT STAKE?

15

H O W W E C A N R E A C H A W I D E R A U D I E N C E

John Parkes, MANAGING DIRECTOR FRANCE

16

17

REACHING A WIDER AUDIENCE

18

30 YEARS EXPERIENCE TALENT & PASSION CONTINUOUS

INNOVATION

GREAT EXECUTION LONG-TERM APPROACH


19

1. CREATING NEW FRANCHISES IN NEW SEGMENTS

2. WIDENING RAINBOW SIX & GHOST RECON REACH

3. EXPANDING SUCCESSFUL FRANCHISES

4. BROADENING THROUGH WIDER ENTERTAINMENT


20






2

Source: NPD, GFK Chart Track

3

21

BIGGEST NEW IP LAUNCHES EVER

1

CREATING BLOCKBUSTER NEW IPS IS IN OUR DNA

22

THE DIVISION: A MAJOR CREATION

R P G S H O OT E R O P E N WO R L D S I N G L E P L AY E R + S E A M L E S S M P / C O O P

225M VIDEO VIEWS

23

66 AWARDS

We see The Division as the biggest release for us in the first half of the year, and quite possibly for the whole 12 months. If it’s updated regularly I don’t see why it won’t become one of our evergreen franchises (like GTA Online or Destiny.)

Every bit as engaging as I had hoped

Redefining what a typical RPG looks like


24


STRONG DIGITAL LIVE SERVICES

A MEANINGFUL CONTRIBUTOR TO OUR LONG TERM


HUGE REACH

25

FOR HONOR: A GREAT LIVE SERVICES NEW CREATION

S O L O & M U LT I P L AY E R

H E AV Y P L AY E R E N G A G E M E N T

L O N G TA I L C O M P E T I T I V E

26

27






28

A PROVEN TRACK RECORD OF WIDENING THE AUDIENCE

FAR CRY 2 FAR CRY 3 FAR CRY 4

Far C

ry N

umbe

r Play

ers

# [PLAYERS ] X3 Fa

rCry

num

ber o

f Play

ers

S T R O N G M P R E P U TAT I O N

O N T R A C K F O R R E C O R D

F R A N C H I S E A U D I E N C E

BRINGING RAINBOW 6 TO A WIDER AUDIENCE

29

30

# DAILY STREAMS POST LAUNCH


31


BRINGING GHOST RECON TO A WIDER AUDIENCE

M I L I TA RY S H O OT E R

M A S S I V E O P E N WO R L D

4 P L AY E R C O - O P / S O L O

32

33






THE BIGGEST SEGMENTS*

3 YEARS AGO NOW & TOMORROW

MULTIPLAYER CENTRIC

RAINBOW SIX FOR HONOR

GHOST RECON THE CREW

THE DIVISION…

OPEN WORLDS ASSASSIN’S CREED

FAR CRY

ASSASSIN’S CREED WATCH DOGS THE DIVISION GHOST RECON

THE CREW

ACTION ADVENTURE

ASSASSIN’S CREED

ASSASSIN’S CREED WATCH DOGS

RPG SOUTH PARK THE DIVISION

SHOOTER FAR CRY FAR CRY

GHOST RECON RAINBOW SIX

EXPANDING SUCCESSFUL FRANCHISES

*excludingSports 34

ACTIVE PLAYERS: 28M AC UNIQUE PLAYERS IN 2015 +7% VS 2014

VIDEOS: 738M VIDEO VIEWS WORLDWIDE ON THE BRAND (+ 5% VS 2014)

AC KEEPS ENTERTAINEMENT BLOCKBUSTER STATUS IN 2015

35

36

CONTINUOUS INNOVATION

UNIVERSAL APPEAL

IMMEDIATE FUN

MEANINGFUL EXPERIENCES

YEAR-ROUND ENGAGEMENT


37






CONSUMER PRODUCTS

THEME PARKS

BROADENING THROUGH WIDER ENTERTAINMENT

ASSASSIN’S CREED TOM CLANCY’S SPLINTER CELL

TOM CLANCY’S GHOST RECON

RABBIDS THE MOVIE WATCH DOGS

RABBIDS TV SHOW

MOVIE & TV

38

39

DEC 21, 2016

65M UNIQUE VIEWERS*

BROADENING THROUGH WIDER ENTERTAINMENT

* Have seen at least 1 episode

40





H O W W E C A N R E A C H A W I D E R A U D I E N C E

DRIVING ENGAGEMENT WITH LIVE CONTENT & ACTIVITIES

Anne Blondel-Jouin, VP LIVE OPERATIONS

41

2. FOCUSING THE COMPANY ON LIVE!

3. WHAT WE HAVE ACHIEVED SO FAR

1. FROM A TRADITIONAL APPROACH TO A LIVE DIMENSION

4. IT’S ONLY THE BEGINNING

THE SUMM

ARY

DRIVING ENGAGEMENT WITH LIVE CONTENT & ACTIVITIES

42

M O V I N G F R O M O N E T I T L E T O A N O T H E R

Hit 1 Hit 2 Hit 3 Hit 4

1. FROM A TRADITIONAL APPROACH …

43

CORE GAME E X P A N S I O N S

…

E V E N T S Daily, Weekly, Monthly

C O N T I N U O U S I M P R O V E M E N T S

T O O L S for the community

U P D A T E S on the fly

L I V E

LONG-LASTING OUTSTANDING ENTERTAINMENT EXPERIENCES

FROM A TRADITIONAL APPROACH 1. …TO THE LIVE DIMENSION

44

E

LIVE CONTENT ACTIVITIES ENGAGEMENT VALUE

VALUE

A

LC

DAU

Time spent

ARPU

ROI

1. THE VIRTUOUS CYCLE OF LIVE

45

G A M E R & C O M M U N I T Y S AT I S F A C T I O N

1. FOCUSING THE COMPANY ON LIVE!

46

ROAD TO

ENGAGEMENT

DEVELOPMENT

MARKETING

SALES

EDITORIAL

A L L T E A M S I N V O LV E D

2. ORGANIZATION

47

ENGAGEMENT

DEVELOPMENT

MARKETING

SALES

EDITORIAL

ROAD TO

,COMMUNITY TEAMS

INFRASTRUCTURE & ONLINE SERVICES

ONE ORGANIC & AGILE LIVE TEAM

A L L T E A M S I N V O LV E D

2. ORGANIZATION

48

POST LAUNCH LAUNCH PRE LAUNCH

COLLABORATING WITH DEVELOPMENT TEAMS TO INTEGRATE A LIVE DIMENSION INTO THE GAME DNA AND THE BRAND PILLARS

INCREASING ENGAGEMENT THROUGH LIVE EVENTS, ESPORTS ETC.

WEEKLY MONITORING OF KPIS TO PILOT AND ADJUST LIVE OPERATIONS, USING BEST PRACTICES FROM ALL OUR EXPERIENCES

E N S U R I N G G A M E R S ’ SATISFACTION WITH AN ROI-BASED MINDSET

A N D A D E D I C AT E D L I V E O P S T E A M

2. ORGANIZATION

49

2016 2015 2014 NON LIVE AAA GAMES

L O N G E R TA I L

3. ACHIEVEMENTS

50


L O N G E R TA I L

3. ACHIEVEMENTS

51


L O N G E R TA I L

3. ACHIEVEMENTS

52

CONTENT 4 SEASON DLCs

Y E A R - R O U N D

3. ACHIEVEMENTS

53

Year 1 roadmap

Q1 2016 Q2 2016 Q3 2016 Q4 2016

SEASON ONE

OPERATION BLACK ICE

SEASON TWO

TO BE REVEALED

SEASON THREE

TO BE REVEALED

SEASON FOUR

TO BE REVEALED

+ FRIEND REFERRAL + COME BACK FOR MORE CONTENT Y E A R - R O U N D

3. ACHIEVEMENTS

54

DAU AFTER 2 MONTHS

NON LIVE

3. ACHIEVEMENTS

*at scale 55

3. ACHIEVEMENTS

T H E D I V I S I O N C L O S E D B E TA

3. ACHIEVEMENTS

ENTERTAINING ALL TYPES OF GAMERS THANKS TO ESPORTS

3. REINFORCING GAMERS’ GLOBAL EXPERIENCE

58

PRO PLAYER

CASUAL PLAYER

STREAMER / BROADCASTER

EVENT ORGANIZER

E N T E R TA I N I N G A L L T Y P E S O F G A M E R S


59

$2 0 1 5 2 0 1 8

$2B MARKET

188M UNIQUE VIEWERS

Nov 1 5

35,610 BROADCASTERS



60

18 M PLAYERS

2015WC SINCE 2003

950K TRACKS SHARED

150K LIVE STREAM SESSIONS

>1 M PEOPLE REACHED ONLINE

>100K LIVE SPECTATORS



61

18 M PLAYERS

2015WC SINCE 2003

950K TRACKS SHARED

150K LIVE STREAM SESSIONS

>1 M PEOPLE REACHED ONLINE

>100K LIVE SPECTATORS



62

ESPORT-AINEMENT

GRASSROOTS PRO TOURNAMENTS

$100k prize pool



63

EXPERTISE PORTFOLIO COLLABORATION STRATEGY

T H I S I S J U S T T H E B E G I N N I N G

4. CONCLUSION

64

M E D I U M T E R M P L A N

Alain Martinez, CFO

65

SIGNIFICANT TOPLINE & PROFIT GROWTH AHEAD

66

REVENUES: 2.2BN€, +60%

FY19 NON-IFRS OPERATING INCOME MARGIN: 20%

X~3 in absolute value

FREE CASH FLOW: ~300M€

5 AAAs BASED ON ESTABLISHED FRANCHISES

HOW MANY GAMES?

FY19 TOP LINE ASSUMPTIONS

67

56

3734

2115 14 12

FY10 FY11 FY12 FY13 FY14 FY15 FY16

GREAT FOCUS DRIVING STRONG EXECUTION

TOTAL NUMBER OF GAMES

STRONG CONCENTRATION

*excluding F2P titles 68

BUILDING ON BLOCKBUSTER BRANDS

69

40 MILLION UNITS

ARE UNIT ASSUMPTIONS AGRESSIVE?


70

71


NEW MARKETS

17% OF TOTAL REVENUES

IMPACT FROM RECURRING PLAYERS INVESTMENT?


72

73

RELE

ASES

LIVE = RECURRING REVENUES

LIVE

FY16 FY17 FY18 FY19

NEW AAA

4 to 5 BIG TITLES

5 BIG TITLES


FY15 FY16 FY17 FY18 FY19

NEW AAA

74

XXX

74

74%

55% 70%

FY16

17%

Physical Digital Distribution Player recurring investment*

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

DIGITAL 30% OF TOTAL REVENUES


FY19 DIGITAL 45%

OF TOTAL REVENUES

28%

9%

21%

YES, >80% GROSS MARGIN EXPANSION?

PROFITABILITY ASSUMPTIONS

YES OPERATING LEVERAGE?

75

YES

INVESTMENT GROWTH & NEW RECRUITMENTS?

RETURN TO SHAREHOLDERS & INVEST FOR THE FUTURE

CASH USE?

CASH FLOW ASSUMPTIONS

76

XXX

We create our own Brands (IPs) internally

MAJOR BENEFITS BETTER LONG-TERM VISIBILITY ON PIPELINE

NO NEED FOR EXPENSIVE M&A OR EXTERNAL TEAMS

MEANINGFUL TEAMS FOR THE LONG-TERM BENEFIT OF OUR SHAREHOLDERS

A DIFFERENT POSITIONING, A DIFFERENT ORGANIZATION

77

M&A ACTIVITY OF MAIN INDUSTRY PLAYERS OVER THE LAST 10 YEARS

CUMULATED M&A

> $13BN

CUMULATED M&A

$2.5BN

BIG M&A IS EXPENSIVE

78

0,0

0,5

1,0

1,5

2,0

2,5

3,0

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

-

3,0

6,0

9,0

12,0

15,0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

CumulatedM&Aexpenditure

CumulatedM&Aexpenditure

n.a. n.a. n.a. n.a. n.a.

AcquisiDonofsubsidiaries(netofcashacquired)

Sources:Companyreports,pressreleasesNotes:(1)AcDvisionstandalonefigures(excludingVivendiGamesacquisiDons);(2)HighMoonwasacquiredbyVivendiGames;(3)ClosingsDllpending

($bn)

($bn)

(1) (1)

(2)

(3)

OPEN WORLDS, A MAJOR GROWTH DRIVER


FY08 FY15

7 % 33%

OPEN WORLDS SHARE OF TOTAL MARKET*

*NPD,GFK,value,physicalsales

79

ONLY UBISOFT CAN REGULARLY DELIVER OPEN WORLDS

= GREAT VISIBILITY YEAR AFTER YEAR


UBISOFT EA ATVI TTWO KONAMI CD PROJECT WARNER

FY14 AC 4 GTA V BATMAN

FY15

AC UNITY FAR CRY 4

WATCH_DOGS THE CREW

DRAGON AGE DESTINY

FY16 AC SYNDICATE

FAR CRY PRIMAL THE DIVISION

METAL GEAR

THE WITCHER

BATMAN MAD MAX

80

WHY 9000 STUDIO EMPLOYEES?

2/3 OF PRODUCTION IN COMPETITIVE COST COUNTRIES and our costs are materially* lower than direct peers

To create G R E AT N E W I P S

To take advantage of O P E N W O R L D G R O W T H

To have better L O N G - T E R M V I S I B I L I T Y O N O U R P I P E L I N E

To come back S T R O N G O N T H E M U LT I P L AY E R F R O N T

To bring G R E AT D I G I TA L S E RV I C E S

*Internal estimates


81

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INVESTOR DAY - ubistatic19-a.akamaihd.net · February 18th2016. INVESTOR DAY. This statement may contain estimated financial data, information on future projects and transactions