Ubisoft Entertainment · EURONEXT:UBI
Ubisoft Entertainment — H1 FY19 Earnings Presentation
20 slides from Ubisoft Entertainment's earnings presentation, Oct 30, 2018
Slide 1: H1 FY19 Earnings
H1 FY19 EARNINGS October 30, 2018
Slide 2: Disclaimer
DISCLAIMER Yves Guillemot, President and Chief Executive Officer Alain Martinez, Chief Financial Officer D I S C L A I M E R This statement may contain estimated financial data, information on future projects and transactions and future business results/performance. Such forward-looking data are pro
Slide 3: Agenda
AGENDA I N T R O D U C TO R Y R E M A R K S H1 FY19 PERFORMANCE F Y 1 9 TA R G E T S 3
Slide 4: Overperforming in a thriving & competitive industry
OVERPERFORMING IN A THRIVING & COMPETITIVE INDUSTRY VERY SOLID TOPLINE PERFORMANCE DIGITAL TRANSFORMATION STRONG RECURRING REVENUES & PROFITABILITY CONFIRMING UBISOFT’S MANY ONGOING GROWTH OPPORTUNITIES CONFIDENCE FOR THE REMAINDER OF THE YEAR AND THE LONG TERM 4
Slide 5: Assassin's Creed Odyssey's amazing reception
ASSASSIN’S CREED ODYSSEY’S AMAZING RECEPTION No one’s made an open-world RPG with this much depth and brilliance since The Witcher 3 Ubisoft’s newest Assassin’s Creed is the stuff of legends For me, it’s easily the best AC game to date, and I can’t wait to keep playing it long after the credits roll
Slide 6: Promising first steps in cloud gaming
PROMISING FIRST STEPS IN CLOUD GAMING Google’s project stream has been impressive so far[…] Playing a game as beautiful as Assassin’s Creed Odyssey without a console or high-end PC is like glipsing into the platform-agnostic future that many of us have been dreaming about for a long time A few years
Slide 7: Agenda
AGENDA I N T R O D U C TO R Y R E M A R K S H1 FY19 PERFORMANCE F Y 1 9 TA R G E T S 7
Slide 8: H1 FY19 Performance
H1 FY19 PERFORMANCE H1 746 M€, + 60% yoy NET BOOKINGS (Q2 Net Bookings : 365 M €, target of 345 M€) 519 M€, + 52% yoy DIGITAL REVENUES PLAYER RECURRING 262 M€, + 49% yoy INVESTMENT BACK-CATALOG 565 M€, + 49% yoy 8
Slide 9: H1 FY19 driven by strong back catalog & live services
H1 FY19 DRIVEN BY STRONG BACK CATALOG & LIVE SERVICES Far Cry 5 continues to outperform Far 40 million players Cry 4 six month after its record launch, & strong PRI yoy growth incl. higher playtime Release of “Special Esports Six Major Paris : Operation 2”, huge update 8 million unique views with a
Slide 10: H1 FY19 Performance – Digital
H1 FY19 PERFORMANCE – DIGITAL MAUs up 29%* 519 M€ + 52% yoy DIGITAL SPLIT Player Recurring Investment** 343 M€ 262 + 50% yoy 202 M€ 175 Digital Distribution 100 M€ 95 256 + 52% yoy 41 168 107 59 H1 FY16 H1 FY17 H1 FY18 H1 FY19 *Excluding mobile * *Includes ingame items, DLCs/season pass, subscriptio
Slide 11: H1 FY19: Non-IFRS P&L
H1 FY19 : NON-IFRS P&L € million, except for per share data H1 H1 2018-19 2017-18 % % Sales 767,0 466,2 Deferred services (21,0) 0 Net bookings 746,1 466,2 Gross profit based on net bookings 635,0 85,1 390,1 83,7 Non-IFRS R&D expenses (272,0) (36,5) ( 186,5) ( 40,0) Non-IFRS Selling expenses (182,8)
Slide 12: H1 FY19: R&D
H1 FY19: R&D H1 H1 € million 2018-19 2017-18 Depreciation of in-house software-related production 168,8 107,4 Depreciation of external software-related production and licenses 5,1 3,2 Royalties 6,5 4,9 Non Capitalized R&D & others* 91,7 70,9 Total R&D P&L 272,0 186,5 Capitalized in-house software-re
Slide 13: H1 FY19: IFRS / Non-IFRS Reconciliation
H1 FY19 : IFRS / NON-IFRS RECONCILIATION H1 H1 2018-19 2017-18 € million, except for per share data IFRS Adjustment Non IFRS IFRS Adjustment Non IFRS Sales 767,0 767,0 466,2 466,2 Deferred services (21,0) (21,0) na na Net bookings 746,1 466,2 466,2 Total Operating expenses ( 672,7) 36,9 ( 635,8) ( 5
Slide 14: H1 FY19: Cash Flows & Closing Cash Position
H1 FY19 : CASH FLOWS & CLOSING CASH POSITION H1 H1 € million 2018-19 2017-18 Opening cash position ( 548,1) ( 80,4) Cash flows from operations 88,4 ( 83,6) Change in WCR ( 66,4) 2,2 Cash flows from operating activities 22,0 ( 81,4) Net investment in capital assets ( 35,0) ( 28,3) Net free cash flow
Slide 15: Agenda
AGENDA I N T R O D U C TO R Y R E M A R K S H1 FY19 PERFORMANCE F Y 1 9 TA R G E T S 15
Slide 16: FY19 Target
FY19 TARGET FY19 NET BOOKINGS: ~ 2 050 M€ FY19 IFRS 15 SALES: ~ 2 000 M€ NON-IFRS OPERATING INCOME: ~440 M€ FREE CASH FLOW: ~ 300 M€ DIGITAL: ~65% of Net Bookings FY19 PRI: ~ 30% of Net Bookings BACK-CATALOG: ~50% of Net Bookings 3 new AAA releases: 19 M units + + 16
Slide 17: H2 Main Releases
H2 MAIN RELEASES EXPANSIONS Q3 SEASON 4 SPECIAL OPERATION 3 KING OF MAYHEM 17
Slide 18: H1 confirmed growth & Ubisoft's many ongoing opportunities
H1 CONFIRMED TOPLINE GROWTH &UBISOFT’S MANY PROFITABILITY ONGOING PROGRESSION GROWTH OPPORTUNITIES OPPORTUNITIES SHORT & MEDIUM TERM OPPORTUNITIES Digital Mobile & PC markets Asia Esports LONG TERM OPPORTUNITIES New forms of gaming (streaming…) significant expansion of TAM Investment in Ubisoft Cl
Slide 19: Conclusion
CONCLUSION Ubisoft continues to deliver on its strategic plan. We are executing on our promise to bring high quality games to players and to engage them over the long term with amazing new content. We focus our energy on growing our biggest franchises, on embedding the community in the development o
Slide 20: Thank You!
THANK YOU !
Ubisoft Entertainment — H1 FY19 Earnings Presentation on 6ix