Slide 1: FY23 Earnings
FY23 EARNINGS May 16, 2023
Slide 2: Disclaimer
DISCLAIMER Yves Guillemot, Chairman and Chief Executive Officer Frédérick Duguet, Chief Financial Officer D I S C L A I M E R This slide show may contain estimated financial data, information on future projects and transactions and future financial results/performance. Such forward-looking data are
Slide 3: FY23: A Challenging but Pivotal Year
FY23: A CHALLENGING BUT PIVOTAL YEAR “While this past year was challenging for the industry and for Ubisoft, it was pivotal for the Company as we reinforced our strategic focus on our biggest opportunities, initiated a meaningful cost reduction plan and provided additional development time for our s
Slide 4: Visible Iterative Progress on Free-to-Play
VISIBILE ITERATIVE PROGRESS ON FREE-TO-PLAY “Our unique organic development model relies on a robust iterative design process which proved successful to enter the Open World and Live Services markets. Our commitment has been that it will allow us to successfully enter the free-to-play segment. While
Slide 5: Agenda
AGENDA FY23 PERFORMANCE F Y 2 4 TA R G E T S
Slide 6: FY23: Topline Highlights
FY23: TOPLINE HIGHLIGHTS FY18 12-MONTHS NET BOOKINGS €1,739m, -18% YoY DIGITAL REVENUES €1,485m, -11% YoY, 85% of total net bookings PLAYER RECURRING €1,002m, +23% YoY, 58% of total net bookings) INVESTMENT BACK-CATALOG €1,004m, -30% YoY, 58% of net bookings 4
Slide 7: Games Highlights
GAMES HIGHLIGHTS Strong engagement Record active users for the turnaround, with playtime Session days up 28% YoY franchise in a year in Q4 strongly up +30% in Q4 leading to 36% vs. last year net bookings growth ACV : Net bookings up 82% over 12 months LTD vs ACO, 61% vs ACOD Full year PRI up 13% 7
Slide 8: FY23: Non-IFRS P&L
FY23: NON-IFRS P&L in € millions, except for per share data FY 2022-23 FY 2021-22 % % IFRS 15 sales 1,814.3 2,125.2 Deferred revenues related to IFRS 15 standard (74.9) 3.3 Net bookings 1,739.5 2,128.5 Gross profit based on Net bookings 1,522.9 87.5 1,858.8 87.3 Non IFRS R&D expenses (1,394.4) (80.2
Slide 9: FY23: R&D
FY23: R&D In € millions FY 2022-23 FY 2021-22 Depreciation of in-house software-related production 1,038.7 433.3 Depreciation of external software-related production and licenses 25.7 9.8 Royalties 24.0 28.1 Non Capitalized R&D & others* 306.0 311.5 Total R&D P&L 1,394.4 782.7 Capitalized in-house s
Slide 10: Cash Flows & Closing Cash Position
FY23: CASH FLOWS & CLOSING CASH POSITION In € millions FY 2022-23 FY 2021-22 Non-IFRS Opening cash position (282.7) 79.2 Cash flows from operation (227.3) (55.0) Change in WCR (126.9) (136.6) Cash flows from operating activities (354.2) (191.6) Net investment in capital assets (71.6) (90.4) Net free
Slide 11: Update on Cost Reduction Plan
UPDATE ON COST REDUCTION PLAN Around €1.75bn FY23 Approximately €35m lower than previously anticipated thanks to: non-variable cost base* • €25m from tight control on recruitments • €10m from favorable FX Total headcount down by more than 700** since end Sept. 2022 Structure costs: After strong YoY
Slide 12: Ubisoft Organic, Iterative-Driven Model
UBISOFT ORGANIC, ITERATIVE-DRIVEN MODEL Ubisoft’s model implies limited intangibles on its balance sheet Balance Sheet Intangibles TTWO ATVI Embracer* EA UBI** $ in millions Sep.22 Sep.22 Sep.22 Sep.22 Sep.22 Goodwill 6 872 9 928 4 436 5 375 95 Other intangibles & software development costs 6 360 1
Slide 13: Agenda
AGENDA FY23 PERFORMANCE F Y 2 4 TA R G E T S
Slide 14: FY24 Targets
FY24 TARGETS Q1 FY24e NET BOOKINGS: around €240m NET BOOKINGS: strong growth FY24e NON-IFRS OPERATING INCOME: Approximately €400m 2023-24 line-up to reflect key strategic pillars: New releases across big brands and long-lasting Live games Assassin’s Creed Mirage The Crew Motorfest Avatar: Frontiers
Slide 15: Appendix
APPENDIX
Slide 16: IFRS / Non-IFRS Reconciliation
FY23: IFRS / NON-IFRS RECONCILIATION In € millions FY 2022-23 FY 2021-22 except for per share data IFRS Adjustments Non-IFRS IFRS Adjustments Non-IFRS IFRS 15 Sales 1,814.3 2,125.2 Deferred revenues related to IFRS 15 (74.9) (74.9) 3.3 3.3 Net bookings 1,739.5 2,128.5 Total Operating expenses (2,400