Ubisoft Entertainment · EURONEXT:UBI

Ubisoft Entertainment — H1 FY22 Earnings Presentation

13 slides from Ubisoft Entertainment's earnings presentation, Oct 28, 2021

  1. Slide 1: H1 FY22 Earnings

    H1 FY22 EARNINGS October 28, 2021 1

  2. 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

  3. Slide 3: Agenda

    AGENDA H1 FY22 PERFORMANCE F Y 2 2 TA R G E T S 3

  4. Slide 4: H1 FY22: Solid progression vs. FY18 FY20 (a more normalized year)

    H1 FY22: SOLID PROGRESSION vs.FY18 FY20 (A MORE NORMALIZED YEAR) 6-MONTHS NET BOOKINGS €718m, -5% YoY & + 9% vs. H1 FY20 €557m, -15% YoY & +4% vs. H1 FY20, 78% of total net bookings DIGITAL REVENUES PLAYER RECURRING €349m, -6% YoY & +13% vs. H1 FY20 , 46% of total net bookings) INVESTMENT BACK-CATAL

  5. Slide 5: Key Highlights

    KEY HIGHLIGHTS ROBUST ACTIVITY IN H1  Unique active players up 15% vs. H1 FY20  MAUs up 9% vs. H1 FY20 STRENGTH OF BACK-CATALOG IN Q2  Q2 total net bookings of €392m, well above target of approximately €340m  Sales outperformance driven by strength and depth of back-catalog  Back-catalog up 20%

  6. Slide 6: H1 FY22: Non-IFRS P&L

    H1 FY22: NON-IFRS P&L in € millions, except for per share data H1 2021-22 H1 2020-21 H1 2019-20 % % % IFRS15 Sales 751.3 757.0 697.5 Deferred revenue related to IFRS15 standard (33.2) (2.2) (36.4) Net bookings 718.2 754.7 661.1 Gross profit based on net bookings 614.4 85.6 652.8 86.5 564.3 85.4 Non-

  7. Slide 7: H1 FY22: R&D

    H1 FY22: R&D In € millions H1 2021-22 H1 2020-21 H1 2019-20 Depreciation of in-house software-related production 99.8 99.7 157.5 Depreciation of external software-related production and licenses 1.5 1.5 2.3 Royalties 12.3 16.7 11.3 Non Capitalized R&D & others* 162.7 140.6 113.9 Total R&D P&L 276.2

  8. Slide 8: H1 FY22: Cash Flows & Closing Cash Position

    H1 FY22: CASH FLOWS & CLOSING CASH POSITION In € millions H1 2021-22 H1 2020-21 H1 2019-20 Non-IFRS Opening cash position 79.2 (100.6) (293.8) Cash flows from operation (225.1) (144.9) (104.1) Change in WCR (63.5) 72.2 83.5 Cash flows from operating activities (288.6) (72.8) (20.6) Net investment in

  9. Slide 9: Agenda

    AGENDA H1 FY22 PERFORMANCE F Y 2 2 TA R G E T S 9

  10. Slide 10: FY22 Targets

    FY22 TARGETS Q3 FY22e Q3 FY22 NET BOOKINGS: between €725m and €780m FY22 NET BOOKINGS: Stable to slightly down FY22e FY22 NON-IFRS OPERATING INCOME: Between €420m and €500m 10

  11. Slide 11: Appendix

    APPENDIX _ pia , a ae i t ee

  12. Slide 12: H1 FY22 Proforma Performance

    H1 FY22 PROFORMA PERFORMANCE Presentation of impact of mobile reclassification on net bookings and gross margin vs. FY20 H1 FY22 – As reported H1 FY22 – Pro forma Q2 FY22 – As reported Q2 FY22 – Pro forma NET BOOKINGS 718.2 M€ 700.6 M€ 392.1 M€ 383.8 M€ +8.6% +6.0% +13.1% +10.6% DIGITAL NET BOOKINGS

  13. Slide 13: H1 FY22: IFRS / Non-IFRS Reconciliation

    H1 FY22 : IFRS / NON-IFRS RECONCILIATION In € millions H1 2021-22 H1 2020-21 except for per share data IFRS Adjustment Non IFRS IFRS Adjustment Non IFRS IFRS15 Sales 751.3 757.0 Deferred revenue related to IFRS15 standard (33.2) (2.2) Net bookings 718.2 754.7 Total Operating expenses (725.4) 51.4 (6

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