H1 FY14 Earnings presentation November 12, 2013

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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

June 25, 2013 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

Alain Martinez, Chief Financial Officer

Jean-Benoît Roquette, SVP Investor Relations

AGENDA

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POSITIONED TO BE A NEXT-GEN WINNER

H1

H2 & FY14

FY15

OPEN WORLDS, EVER-MORE DOMINANT

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Open worlds take an ever-bigger share of the market

in action-driving

in action-adventure

in RPG

in FPS

OPEN WORLDS, EVER-MORE DOMINANT

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Open worlds will receive a MAJOR BOOST with PS4 & XboxOne

OPEN WORLDS, an IDEAL vehicle to implement

the DIGITAL BREAKTHROUGHS

WHY OPEN WORLDS ARE SO APPEALING

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They ARE playing FIELDS SYSTEMIC and COOP/SOCIAL at their

BEST Player is FREE to define his experience and how he interacts with friends

LOW BARRIERS to entry as players play

at their OWN RYTHM FLEXIBLE by essence

EASIER to integrate UGC and

to allow for PERSONNALIZED CONTENT

MASTERING of the DIGITAL

SKILLS + + +

=

HIGH QUALITY

games

MAJOR

production

CAPACITY

WHAT’S NEEDED TO WIN NEXT GEN?

REGULAR releases of

OPEN WORLDS

UBISOFT is READY to be a WINNER of this new generation

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8 000 LEAD & ASSOCIATE proven organization

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DEVELOPERS

UBISOFT IS READY: MAJOR PRODUCTION CAPACITY

UBISOFT IS READY: HIGH QUALITY GAMES

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3 in the top 7

best rated titles

Average Rating at

85

Based on Metacritic average ratings, all platforms included (exc. Wii & WiiU), as of November 08, 2013

Last 23 consoles titles Average Metacritic Developpers

1 GTA 5 97 TTWO

2 Rayman Legends 90 Ubisoft

3 Rocksmith 2014 88 Ubisoft

4 Diablo III 87 Activision

5 NBA 2K14 86 TTWO

6 FIFA 14 86 EA

7 Assassin's Creed 4 85 Ubisoft

8 Lego Marvel Super Heroes 84 Warner

9 Skylander Swap Force 84 Activision

10 Battlefield 4 83 EA

11 Splinter Cell's Blacklist 83 Ubisoft

12 NHL 14 81 EA

13 Saints Row IV 81 Deep Silver

14 Just Dance 2014 79 Ubisoft

15 Madden NFL 25 78 EA

16 PES 14 78 Konami

17 WWE 2K14 77 TTWO

18 Call of Duty Ghosts 75 Activision

19 Disney Infinity 75 Disney

20 Batman: Arkham Origins 74 Warner

21 Beyond: Two Souls 71 Quantic Dream

22 The Bureau: Xcom Declassified 68 TTWO

23 Lost Planet 3 60 Capcom

CREATE MASSIVE

Ubisoft has been preparing for this

8 massive OPEN WORLDS

released in 7 years!

HUGE & well COORDINATED

production CAPACITIES

OPEN WORLDS

& LIVING

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UBISOFT IS READY: REGULAR RELEASES OF OPEN WORLDS

Ubisoft has been preparing for this

LEVERAGING the EXPERIENCE

accumulated over the last 4 YEARS

Free to play – mobile – Facebook – online platforms – digital distribution …

the Online & Social

BREAKTHROUGHS

DEEP INTEGRATION of

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UBISOFT IS READY: MASTERING OF THE DIGITAL SKILLS

LEVERAGING

the EXPERIENCE Accumulated over the

last 4 years

ANALYTICS

ALGORITHMS

BIG DATA

24/24 SERVERS

ACQUISITION ENGAGEMENT

MONETIZATION

BILLING STRUCTURE

COMMUNITY MANAGEMENT

FREE TO PLAY

DIGITAL DISTRIBUTION

CROSS PLATFORMS

DIGITAL MARKETING

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KPIs

UBISOFT IS READY: MASTERING OF THE DIGITAL SKILLS

NEXTGEN : THE BEST OF CONSOLES AND ONLINE ENTERTAINMENT

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N°1 – Watch Dogs

N°2 – The Division

Best Action Game – Watch Dogs

Best New Franchise – The Division

Best Racing Game – The Crew

WatchDogs - The Crew - The Division

Massive open world games that deeply and seamlessly

integrate online and social innovations into their gameplay

"The Division. How Ubisoft is making the Next Generation’s

hottest project"

EXPAND THE VISIBILITY OF OUR BRANDS

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Estimated 100 MILLION

VIEWERS in the US

LEADER 6 times out of 9 for 2-11 years

old category

LOWERS CPA*!

*Cost per acquisition

AGENDA

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POSITIONED TO BE A NEXT-GEN WINNER

H1

H2 & FY14

FY15

H1 FY14

H1 Sales : 293 M€, +5% (+8% at constant exchange rates)

Driven by back-catalog sales and digital

Back-catalog : 113 M€, +16%

Solid sales from Far Cry 3 and Assassin’s Creed 3

Digital : 71 M€, +29%

24% of total sales

Driven by digital distribution, sale of items and DLCs

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H1 FY14 : Sales

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H1 FY14 : Financial summary

H1 FY14

Gross margin flat at last year high level 69%

Supported by better back-catalog + solid digital gross margins

Non-IFRS Operating Loss : (98) M€ vs (58,2) M€

A 42 M€ increase in R&D due to higher depreciation of H1 titles +

cancellation of projects

Cash flow from operations : stable at (144,8) M€

Reduced gap between R&D investments and R&D charges

Gross margin up 10 M€ and flat in percentage point

Supported by better back catalogue and solid digital gross margins

R&D up 42 M€, + 13 percentage point

SG&A up 7 M€, flat in percentage point

variable marketing expenses slightly up at 88 M€ or 30% of sales (83 M€ and 30% in H1 FY13). Lower than expected as

some expenses related to the Q3 titles were moved to fiscal Q3.

fixed structure costs slightly up at 73 M€ or 25% of sales (71 M€ and 25% in H1 FY13).

Income tax rate of 38%

H1 FY14 : Non-IFRS P&L

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€ million, except for per share data H1 2013-14 H1 2012-13

% %

Sales 293,3 279,2

Gross profit 202,2 68,9 192,7 69,0

R&D expenses (138,9) (47,4) (96,8) (34,7)

Selling expenses (123,5) (42,1) (116,8) (41,8)

G & A expenses (37,8) (12,9) (37,2) (13,3)

SG & A expenses (161,3) (55,0) (154,0) (55,2)

Non-IFRS operating income (98,0) (33,4) (58,1) (20,8)

Net Financial Income (2,4) (2,1)

Income Tax 38,2 22,2

Non-IFRS Net Income (62,1) (38,1)

Non-IFRS Diluted EPS (0,59) (0,40)

Nbr of shares fully diluted (000) 104 508 95 897

45M€ depreciation increase explains the 42M€ increase in total R&D = higher depreciation of H1 titles +

cancellation of projects

Royalties down 3M€ = lower casual sales

7% increase in total cash R&D, or +10% at constant exchange rate

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H1 FY14 : R&D

€ million H1 2013-14 H1 2012-13

Depreciation of in-house software-related production 107,8 61,4

Depreciation of external software-related production and licenses 6,2 7,9

Royalties 9,7 12,8

Non Capitalized R&D & others 15,2 14,8

Total R&D depreciation and royalties 138,9 96,8

Capitalized in-house software-related production 189,8 171,5

Capitalized external software-related production and licenses 18,7 19,5

(excluding future commitments)

Royalties 9,7 12,8

Non Capitalized R&D & others 15,2 14,8

Total development investment 233,3 218,5

IFRS Non-Current expenses and income : (12) M€

• Includes: 11.7 M€ goodwill amortization and brand depreciation

IFRS Net financial income : 13 M€

• Includes: 4.4 M€ profit on sale of Gameloft shares + 11.4 M€ (non-cash) from adjustment of earn-out liabilities

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H1 FY14 : IFRS / non-IFRS reconciliation

€ million,

except for per share data

H1 2013-14 H1 2012-13

IFRS Adjustment Non-IFRS IFRS Adjustment Non-IFRS

Sales 293,3 293,3 279,2 279,2

Total Operating expenses (407,3) 16,0 (391,3) (339,5) 2,1 (337,4)

Stock-based compensation (4,3) 4,3 0,0 (2,1) 2,1 0,0

Non-Current expenses and income (11,7) 11,7 0,0 0,0 0,0

Other operating income and expenses 0,0 0,0 0,0 0,0 0,0

Operating Income (114,0) 16,0 (98,0) (60,3) 2,1 (58,2)

Net Financial income 13,4 (15,8) (2,4) 5,1 (7,2) (2,1)

Income tax 38,2 0,0 38,2 22,9 (0,8) 22,2

Net Income (62,3) 0,2 (62,1) (32,3) (5,8) (38,1)

Diluted earnings per share (0,60) 0,00 (0,59) (0,34) (0,06) (0,40)

H1 FY14 : Cash flows and closing cash position

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Despite 40 M€ drop in EBIT, Cash flows from Operations flat, reflecting reduced gap between R&D

investments and R&D charges (94 M€ vs 122 M€ in H1 FY13)

WCR increase due to Rayman and Splinter Cell releases at end of quarter

€ million H1 2013-14 H1 2012-13

Opening cash position 104,5 84,6

Cash flows from operations (144,8) (146,4)

Change in WCR (115,9) (98,4)

Cash flows from operating activities (260,7) (244,8)

Net investment in capital assets (16,3) (10,9)

Net free cash flow (276,9) (255,7)

Net acquisitions/disposals (3,0) (0,1)

Proceeds from issue of capital and other financial flows 36,3 0,7

Disposal of Gameloft Shares 6,0 10,7

Effect of exchange rate fluctuations (8,7) 7,4

Decrease/(increase) in net debt (246,3) (237,0)

Closing cash position (141,8) (152,4)

AGENDA

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POSITIONED TO BE A NEXT-GEN WINNER

H1

H2 & FY14

FY15

FY14 : TARGETS

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FY 14

Sales : 995 M€ 1 045 M€

Non-IFRS Operating Loss : (70) M€ (40) M€

Q3 sales : between 500 M€ and 540 M€

ASSASSIN'S CREED 4 BLACK FLAG, ANOTHER MAJOR ENTRY IN THE FRANCHISE

““Black Flag’s world is built to amaze.

The fantasy it delivers sets new benchmarks

for open-world gaming”

Edge, Nov. 2013

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The best rated Christmas title

PS4, XboxOne, 360, PS3, WiiU, PC

Lead/Associate studios : Montreal – Annecy – Singapore

Quebec City – Sofia – Bucharest

“The most ambitious AC game in years,

an incredible adventure by any standard”

Gamespot, Nov. 2013

CASUAL: MANAGING THE TRANSITION

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Casual over 20% of total FY14 sales

Great business : 7 very profitable years for Ubisoft

Committed and adaptative approach

Next generation to bring back casual gamers

to living room

FISCAL Q4 : SOUTH PARK + RE-ORDERS OF NEXTGEN SKUS

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+

Re-orders of NextGen skus

FY14 DIGITAL/ONLINE : BROADER DISTRIBUTION AND STRONGER LINE-UP

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DIGITAL DISTRIBUTION

PC FREE-TO-PLAY, eSPORT

MOBILE & CONSOLE DIGITAL (Paymium & Free to Play)

+ DLCS FROM CONSOLES & PC GAMES

AGENDA

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POSITIONED TO BE A NEXT-GEN WINNER

H1

H2 & FY14

FY15

FY15 : A significantly stronger line-up

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FY 15

Calendar 2014 : consoles market expected to grow again Much stronger line up for Ubisoft (franchises and new brands) Starting in Q1 with Watch Dogs Non-IFRS Operating Income : minimum 150 M€

APPENDICES

"We believe that our major

production capacity, strong of a

network of 26 international studios and

over 8 000 developers, now optimized

with our lead and associate

organization, will allow us to come

with an enhanced pipeline of

increasingly high quality franchises

and new IPs. We will be able to release

our franchises more and more

regularly, providing solid visibility on

our future revenue and profitability

streams.

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All that, combined with the Open-World

and Online expertise/know-how that

we have been growing steadily

internally make us believe that we will

benefit disproportionally from the

arrival of the new generation and from

the continued growth of the online

market"

Yves Guillemot, Ubisoft CEO

KEY LEARNINGS

FRANCHISES =

LG TERM VISIBILITY

KEY FACTORS OF SUCCESS

– Quality

– Regular Releases

– Deep Production Capacity

NEW CYCLES =

OPPORTUNITY FOR NEW BRANDS

CURRENT GEN KEY SUCCESS FACTORS : QUALITY & REGULAR RELEASES

Physical retail sales : NPD, GFK

Cumulated WW Sales (value) XBOX360 / PS3 / WII / PC

2005-2012 (8 years) Publishers

1 CALL OF DUTY ACTIVISION BLIZZARD F 2 MARIO NINTENDO F

3 FIFA SOCCER EA F

4 WII FIT* NINTENDO NB

5 ASSASSIN'S CREED UBISOFT NB

6 GUITAR HERO* ACTIVISION BLIZZARD NB 7 HALO MSFT F

8 MADDEN NFL EA F

9 THE SIMS EA F

10 NEED FOR SPEED EA F

11 BATTLEFIELD EA F

12 JUST DANCE UBISOFT NB 13 ROCK BAND EA NB 14 MARIO KART WII NINTENDO F

15 LEGO TELLTALE NB

16 GRAND THEFT AUTO TAKE-TWO F

17 WORLD OF WARCRAFT ACTIVISION BLIZZARD F 18 WWF/WWE THQ F

19 ELDER SCROLLS BETHESDA F

20 SONIC SEGA F

1 BRAND IN THE TOP 5 !

2 BRANDS IN THE TOP 12 !

2 OF THE 4 BIGGEST NEW IPS !

*includes hardware

Far Cry – Watch Dogs – The Division – The Crew strong contenders for Next-Gen top 20

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F: Franchise NB: New Brands

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Ubisoft Core brands Ubisoft Casual Brands

A highly committed, growing audience > 1 billion people

On consoles

On PC, mobile, tablet (Free to Play model)

Social interactions

Value

added

for player

Multi-screens gaming

Item based model

Grow ARPU and each brand’s profitability

Ubisoft’s

benefits

Drive players acquisition

Increase players engagement & therefore monetization

Expand to new territories (Asia, Turkey…) and to new platforms (mobile, tablet)

Direct relation with player = knowledge (through analytics)

LONG TERM OPPORTUNITIES FOR OUR CORE AND CASUAL BRANDS

SYSTEMIC LOW BARRIERS

ANALYTICS =

1 2 3

4 5

GAMEPLAY & SOCIAL TO ENTRY

PERSONALIZED EXPERIENCE

BREAKTHROUGHS (details in appendices)

COOP

ONLINE & SOCIAL

USER GENERATED CONTENT

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5

The BEST and MOST LUCRATIVE online games

are built on SOLID SYSTEMIC FOUNDATIONS

COMMON RESOURCES for INFINITE entertainment combinations

SYSTEMIC 1 GAMEPLAY

Huge world

Retention

LONG GAMING HOURS

LOWER development COST

per hour played

ONLINE & SOCIAL

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PROGRESS and interact WITH FRIENDS

Requires Updates in real time

(things 360 & PS3 could not do)

COOP 2 & SOCIAL

Players COME BACK REGULARLY

to the world

Players spend MORE TIME

playing

LOWER

the COST Per Acquisition (CPA)

ONLINE & SOCIAL

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3

TRY for FREE and KEEP

your PROGRESS when you start to PAY

LOW BARRIERS TO ENTRY

Seamless

& FRICTIONLESS ACCESSIBLE

to non gamers

Asynchronous,

an EASY ACCESS to MULTIPLAYER

COOL

ASYNCHRONOUS, WHENEVER with your FRIENDS

ULTRA-ACCESSIBLE : INSTANT-ON platforms

MOBILE interfaces

SMALL SESSIONS that add to A LOT OF TIME

CROSS PLATFORM

ONLINE & SOCIAL

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MORE CONTENT 4 FROM UGC

ENHANCED MODING & UGC

due to cross platform SHARING

& to ALWAYS ON

UGC CREATORS become

SUPER AMBASSADORS (Lower Cost Per Acquisition)

INCREASES LIFESPAN of gaming experience

ONLINE & SOCIAL

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KNOW PLAYERS (profile, what they play, what interests them most),

track their sessions

= Offer CONTENT that MEETS their NEEDS

ANALYTICS 5

STRONGER

RELATIONSHIP with gamers

a PERSONNALIZED

experience increases

ENGAGEMENT and

RETENTION

TARGETED MARKETING

ONLINE & SOCIAL

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