FY15 Earnings presentation May 12th, 2015

FY15 Earnings presentation May 12th, 2015

Yves Guillemot, President and Chief Executive Officer Alain Martinez, Chief Financial Officer Jean-Benoît Roquette, SVP Investor Relations 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 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 26, 2014 with the French Financial Markets Authority (l Autorité des marchés financiers)). 2

SUMMARY Players at the heart of our games and brands success Teams strong execution on all strategic priorities - Strong portfolio of entertainment brands - Systemic open worlds - Growing communities & engagement - Digital FY16: Record operating income target Beyond: Financial performance driven by Ever more engaged communities / High potential live services / Market growth 2 years 100 M share buyback program Videogames increasingly the dominant form of Entertainment 3

AGENDA FY15 performance FY16 targets 4

OPEN WORLDS TAKE A BIGGER SHARE BEST SELLERS 2014 (value) 1 COD : Advanced Warfare 2 FIFA 15 3 GTA V 4 Destiny 5 Watch Dogs 6 AC Unity + Rogue 7 Far Cry 4 8 Super Smash Bros. 9 Madden NFL 15 10 FIFA 14 OPEN WORLDS SHARE OF TOTAL MARKET 2008 2014 16% 30% Players growing appetite for Freedom 5 Physical retail sales : NPD, GFK

UBISOFT S STRATEGY HAS DELIVERED HANDSOMELY BEST SELLERS 2014 (value) 1 COD : Advanced Warfare 2 FIFA 15 3 GTA V 4 Destiny 5 Watch Dogs 6 AC Unity + Rogue 7 Far Cry 4 8 Super Smash Bros. 9 Madden NFL 15 10 FIFA 14 GROWING COMMUNITY & ENGAGEMENT Community + 54% Rewards collection +100% XBOX ONE & PS4 52% of FY15 revenues Physical retail sales : NPD, GFK Early move on newgen + growing communities + growing digital capabilities + massive systemic open worlds 6

FY15 PERFORMANCE Sales : 1,464 M (+42% at cstt FX) Outstanding new releases : Assassin s Creed (U+R) - Watch Dogs - Far Cry 4 - the Crew > 30 M units collectively FY15 Just Dance BIGGEST MUSIC VIDEOGAME BRAND EVER Back-catalog : 233 M (flat yoy), 16% total revenues Assassin s Creed - Far Cry - Rocksmith - Rayman - South Park: The Stick of Truth 7

FY15 PERFORMANCE Digital strong momentum : 26% of total rev (vs 19%) 383 M +97% FY15 195 M 113 +31% Other Digital revenues * Full game Digital distribution 87 269 +149% 108 FY14 FY15 *mostly extra contents for console, PC & mobile 8

FY15 : FINANCIAL SUMMARY Record gross margin at 77% top franchises momentum + digital revenues impact FY15 Record non-ifrs Operating profit : 171 M (target of 165 M ) Record Free Cash flow: 176 M Net cash situation: 211 M 9

FY15 : NON-IFRS P&L million, except for per share data 2014-2015 2013-2014 % % Sales 1 463,8 1 007,1 Gross profit 1 126,7 77,0 721,8 71,7 R&D expenses (573,5) (39,2) (426,1) (42,3) Selling expenses (284,1) (19,4) (279,3) (27,7) G & A expenses (98,4) (6,7) (82,0) (8,1) TO BE UPDATED SG & A expenses (382,5) (26,1) (361,3) (35,9) Non IFRS Current operating income 170,7 11,7 (65,6) (6,5) Net Financial Income (4,5) (5,8) Income Tax (53,5) 22,1 Non IFRS Net Income 112,7 (49,3) Non IFRS Diluted earnings per share 1,00 (0,46) Nbr of shares fully diluted 113,3 107,3 Gross margin up 405 M, at record 77% level (+5 points yoy) Strong line-up performance + favorable mix (PS4, XboxOne) Growing digital footprint R&D up 148 M, down 3 points SG&A up 21 M, down 10 percentage points variable marketing expenses marginally up to 206 M & down to 14% of sales (204 M and 20% in FY14). Positive impacts from marketing efficiencies + Watchdogs marketing expenses in FY14 fixed structure costs up to 176 M and down to 12% of sales (157 M and 16% in FY14) Non-IFRS Income tax rate at 32%. 10

FY15 : R&D million 2014-15 2013-14 Depreciation of in-house software-related production 423,8 313,0 Depreciation of external software-related production and licenses 34,1 44,4 Royalties 23,0 21,4 Non Capitalized R&D & others 92,6 47,3 Total R&D depreciation and royalties 573,5 426,1 Capitalized in-house software-related production 389,7 373,8 Capitalized external software-related production and licenses (excluding future commitments) 32,0 37,2 Royalties 23,0 21,4 Non Capitalized R&D & others 92,6 47,3 Total development investment 537,3 479,7 101 M total depreciation increase : mostly more games 45 M increase in Non Capitalized R&D & others : highlights growing post launch operations & bonuses 11 M Capitalized R&D increase : less than 3% increase 11

FY15 : IFRS / NON-IFRS RECONCILIATION million, except for per share data 2014-15 2013-14 IFRS Adjustment Non-IFRS IFRS Adjustment Non-IFRS Sales 1 463,8 1 463,8 1 007,1 1 007,1 Total Operating expenses (1 324,4) 31,3 (1 293,1) (1 105,0) 32,3 (1 072,7) Stock-based compensation (9,6) 9,6 0,0 (9,7) 9,7 0,0 Non current operating income and expenses (21,7) 21,7 0,0 (22,6) 22,6 0,0 Operating Income 139,4 31,3 170,7 (97,9) 32,3 (65,6) Net Financial income 0,7 (5,2) (4,5) 10,3 (16,1) (5,8) Income tax (53,1) (0,4) (53,5) 22,1 0,0 22,1 Net Income 87,0 25,7 112,7 (65,5) 16,2 (49,3) Diluted earnings per share 0,77 0,23 1,00 (0,61) 0,15 (0,46) IFRS Non-Current expenses and income : (21,7) M Goodwill and brands depreciation IFRS Net financial income : 0,7 M Includes : 5,2 M (non-cash) from adjustment of earn-out liabilities 12

FY15 : CASH FLOWS & CLOSING CASH POSITION million 2014-2015 2013-2014 Opening cash position (12,7) 104,5 Cash flows from operations 173,6 (79,3) Change in WCR 58,8 (40,8) Cash flows from operating activities 232,4 (120,1) Net investment in capital assets (56,1) (42,9) Net free cash flow 176,3 (163,0) Net acquisitions/disposals (3,5) (9,7) Proceeds from issue of capital and other financial flows 18,4 65,7 Disposal of Gameloft Shares 0,0 6,0 Effect of exchange rate fluctuations 32,9 (16,3) Decrease/(increase) in net debt 224,0 (117,3) Closing cash position 211,3 (12,7) Sharp improvement of Cash flows from Operations : +253 M Reflection of the strong top and bottom lines performance Sharp WCR improvement : + 100 M No big titles released since early December vs South Park in Q4 FY14 13

AGENDA FY15 performance FY16 targets 14

FY16 : TARGETS CONFIRMED TARGETS Sales: Stable Non-IFRS Operating Income : minimum 200 M KEY DRIVERS New releases down yoy FY16 AC Syndicate - R6 Siege Just Dance - The Division + 1 AAA title Digital (~30% of total rev) & back catalogue growth Favorable FX Higher GM and lower R&D as a % of sales Negative FCF Positive gap between cash R&D and P&L R&D WCR impact from The Division + AAA title in Q4 Assassin s Creed movie investment 15

UBISOFT FINANCIAL PERFORMANCE 15.7 14.5 12.2 Industry Soft. Sales excl. Digital ( billion) 10.8 9.5 Sales ( million) 1 039 1 061 1 256 1 007 1 464 38 78 148 193 378 2010 2011 2012 2013 2014 2015e FY11 FY12 FY13 FY14 FY15 FY16e Digital Gross Margin Non-IFRS Op. Income ( million) 171 200e 64.8% 67.7% 72.7% 71.7% 77% 29 56 100 FY11 FY12 FY13 FY14 FY15e FY16e FY11 FY12 FY13 FY14 FY15 FY16e -66 16

FY16 : ASSASSIN S CREED SYNDICATE New setting: Birth of organized crime in London at the height of the Industrial Revolution Play Evie and Jacob Frye Single player only Release: October 23 rd (Xbox One & PS4) / Fall 2015 (PC) 17

FY16 : RAINBOW 6 SIEGE Best E3 PC game Rainbow Six was our favorite game at E3 PC Gamer, May 14 Game of the show Community s positive reception to the Closed Alpha Deep replayability potential procedural destruction + asymmetrical assault gameplay + operators class system Release : FY Q3 (Xbox One, PS4 & PC) 18

FY16 : THE DIVISION Highly anticipated open-world MMO RPG Most anticipated titles The Snowdrop engine: amazing graphics Release : FY Q4 (Xbox One, PS4 & PC) 19

FY16 : DIGITAL LIVE SERVICES LIVE SERVICES CONSOLE / PC MOBILE FY15 New for FY16 more to be announced 20

APPENDICES

PAST 10 YEARS KEY SUCCESS FACTORS AC THE 5TH BIGGEST BRAND! 2 OF THE 4 BIGGEST NEW IPS! Cumulated Retail Sales (Value) (Xbox360, PS3, Wii, WiiU, Xbox One, PS4 + PC) *includes hardware 2005-2014 (10 years) F: Franchise NB: New Brands Publishers 1 CALL OF DUTY ACTIVISION BLIZZARD F 2 MARIO NINTENDO F 3 FIFA SOCCER EA F 4 GTA TAKE-TWO F 5 ASSASSIN'S CREED UBISOFT NB 6 WII FIT* NINTENDO NB 7 MADDEN NFL EA F 8 THE SIMS EA F 9 GUITAR HERO* ACTIVISION NB 10 BATTLEFIELD EA F 11 HALO MICROSOFT F 12 NEED FOR SPEED EA F 13 JUST DANCE UBISOFT NB 14 LEGO WARNER NB 15 NBA 2K TAKE-TWO F 16 Warcraft ACTIVISION BLIZZARD F 17 SONIC SEGA F 18 ROCK BAND* EA NB 19 ELDER SCROLL BETHESDA F 20 SKYLANDERS ACTIVISION BLIZZARD NB Far Cry Watch Dogs The Division Rainbow 6 strong contenders for Next-Gen top 20 KEY LEARNINGS FRANCHISES = LG TERM VISIBILITY KEY FACTORS OF SUCCESS Strong communities Quality Regular Releases Deep Production Capacity NEW CYCLES = OPPORTUNITY FOR NEW BRANDS Physical retail sales : NPD, GFK 22

UBISOFT S STOCK much more liquid than it may appear Volume Fragmentation As of May, 11th Euronext 35% of total liquidity Average volume over 1 year at 963 000 shares 23