Ubisoft Entertainment : July 17, 2019 - Ubisoft reports first-quarter 2019-20 sales 437.65 KB

UBISOFT® REPORTS FIRST-QUARTER2019-20 SALES

Higher-than-expected performance, led notably by Assassin's Creed® Odyssey, Rainbow Six® Siege, and Player Recurring Investment

FIRST-QUARTER2019-20: NET BOOKINGS ABOVE TARGET

		Reported	% of total net bookings
	In €m	change (%)
		vs. Q1 2018-19	Q1 2019-20	Q1 2018-19
Sales (IFRS 15)	363.4	-9.2%	N/A	N/A
Net bookings	314.2	-17.6%	N/A	N/A
Digital net bookings	292.4	+1.9%	93.1%	75.2%
PRI1 net bookings	150.4	+19.5%	47.9%	33.0%
Back-catalog net bookings	272.5	-18.1%	86.7%	87.2%

• Assassin's Creed Odyssey: very sharp increase in daily engagement, PRI and sell- through compared with Assassin's Creed® Origins in the first quarter
• Rainbow Six Siege:
• • One of the industry's top-tenbest-selling titles over the last five years2
  • Q1 player engagement and PRI up year on year
  • Agreement signed with Neowiz to make Rainbow Six Siege available in PC bangs3 in South Korea
• The Division® 2: the industry's biggest hit since the beginning of the year4
• Strong E3 performance for Ubisoft:
• • Ghost Recon® Breakpoint: best sentiment score5 out of all E3 games
  • Watch Dogs®: Legion: more than 65 awards and nominations
  • Roller Champions™: the most streamed game6 of all E3 games
• Games for Change Awards: Ubisoft won three G4C awards, including the Industry Leadership Award in recognition of how its "longstanding dedication to social impact and the positive power of games has proven to inspire many individuals all around the world."

TARGETS FOR FULL-YEAR2019-20 CONFIRMED

1. Player Recurring Investment includes sales of digital items, DLC, season passes, subscriptions and advertising
2. In units for games sold at $60 in North America and Europe (Sources: NPD, GfK, GSD, Ubisoft estimates)
3. Internet cafés specialized in online multiplayer games
4. In units. Between January and June 2019, for consoles and PC. Scope: Europe, Middle East, Africa, North America, Latin America, Japan. Sources: NPD, GSD, GfK, Famitsu, Ubisoft estimates
5. Lowest dislike ratio
6. Cumulated number of hours watched on all streams on Twitch and Youtube during the E3 week

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Paris, July 17, 2019 - Today, Ubisoft released its sales figures for the first quarter of fiscal 2019-20, i.e. the three months ended June 30, 2019.

Yves Guillemot, Co-Founder and Chief Executive Officer, said "Our first-quarternet bookings came in well above target, thanks to the very robust performance of our games ‒ notably Rainbow Six Siege and Assassin's Creed Odyssey ‒ and a very strong increase in player recurring investment for PCs and consoles, led by record-highengagement levels per player. As well as this very good start to the fiscal year, the positive reception for our games at E3 has confirmed our full-yearexpectations. Ghost Recon Breakpoint was highly visible among content creators and earned a record-highsentiment score out of all E3 games. Watch Dogs: Legion made a huge impression thanks to its innovative gameplay, putting the franchise back in the spotlight. Our games line-upfor fiscal 2019-20- which also includes Rainbow Six Quarantine and Gods & Monsters - is one of our strongest in the last five years.

In the coming years, Ubisoft is ideally positioned to seize the many value creation opportunities that lie ahead and therefore to generate strong revenue growth and further increase its profitability."

Sales and net bookings

Note

The Group presents indicators which are not prepared strictly in accordance with IFRS as it considers that they are the best reflection of its operating and financial performance. The definitions of the non-IFRS indicators are provided in an appendix to this press release

In € millions	Q1 2019-20	Q1 2018-19
Sales (IFRS 15)	363.4	400.0
Deferred services/other differences* between the two	(49.2)	(18.5)
revenue recognition standards
Net bookings	314.2	381.5

• Concerning license and distribution agreements

IFRS 15 sales for the first quarter of 2019-20 came to €363.4 million (€354.0 million at constant exchange rates7), representing a 9.2% decrease compared with the €400.0 million reported for first-quarter2018-19.

First-quarter2019-20 net bookings amounted to €314.2 million, exceeding the target of around €270 million, and down 17.6% (or 19.8% at constant exchange rates) on the first-quarter2018-19 figure of €381.5 million.

7 Sales at constant exchange rates are calculated by applying to the data for the period under review the average exchange rates used for the same period of the previous fiscal year.

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Outlook

Second-quarter2019-20

Net bookings for the second quarter of 2019-20 are expected to amount to around €310 million, approximately 15.0% lower than in second-quarter2018-19.

Full-year2019-20

Ubisoft is standing by its full-year targets of:

• Net bookings of around €2,185 million.
• Non-IFRSoperating income of around €480 million.

Recent significant events

Games for Change Awards: At the Games for Change festival, which took place in New York from June 17 to 19, 2019, the Ancient Egypt Discovery Tour mode of Assassin's Creed Origins won both the Best Learning Game Award and the People's Choice Award. Ubisoft also received the first-ever Industry Leadership Award in the history of Games for Change, recognizing the social engagement and positive power of all of the Ubisoft studios to inspire the industry to go further.

Contacts
Investor Relations	Press Relations
Jean-Benoît Roquette	Michael Burk
SVP Investor Relations	Senior Director of Corporate Public Relations
+ 33 1 48 18 52 39	+ 33 1 48 18 24 03
[e-mail]	[e-mail]

Julien Brosillon

Senior Investor Relations Manager

• 33 1 73 30 11 97 [e-mail]

Disclaimer

This press release may contain estimated financial data, information on future projects and transactions and future financial results/performance. Such forward-looking data are provided for target 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 not been audited by the Statutory Auditors. (Additional information is specified in the most recent Ubisoft Registration Document filed on June 7, 2019 with the French Financial Markets Authority (l'Autorité des Marchés Financiers)).

About Ubisoft

Ubisoft is a leading creator, publisher and distributor of interactive entertainment and services, with a rich portfolio of world-renowned brands, including Assassin's Creed, Far Cry, For Honor, Just Dance, Watch_Dogs, Tom Clancy's video game series including Ghost Recon, Rainbow Six and The Division. The teams throughout Ubisoft's worldwide network of studios and business offices are committed to delivering original and memorable gaming experiences across all popular platforms, including consoles, mobile phones, tablets and PCs. For the 2018-19 fiscal year, Ubisoft generated net bookings of €2,029 million. To learn more, please visit www.ubisoftgroup.com.

© 2019 Ubisoft Entertainment. All Rights Reserved. Ubisoft and the Ubisoft logo are registered trademarks in the US and/or other countries.

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APPENDICES

Definition of non-IFRS financial indicators

Net bookingscorresponds to the "Sales" indicator used prior to fiscal 2018-19 (i.e. sales excluding the impacts of the application of IFRS 15).

Non-IFRSoperating income calculated based on net bookingscorresponds to operating income less the following items:

• Stock-basedcompensation expense arising on free share plans, group savings plans and/or stock options.
• Impairment of acquired intangible assets with indefinite useful lives.
• Non-operatingincome and expenses resulting from restructuring operations within the Group.

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Breakdown of net bookings by geographic region

	Q1 2019-20	Q1 2018-19
Europe	33%	35%
North America	46%	45%
Rest of world	21%	20%
TOTAL	100%	100%

Breakdown of net bookings by platform

	Q1 2019-20	Q1 2018-19
PLAYSTATION®4	31%	38%
XBOX One™	18%	22%
PC	34%	24%
NINTENDO SWITCH™	5%	5%
MOBILE	7%	7%
XBOX 360™, PS®3, Wii™, Wii U™	0%	1%
Others*	5%	3%
TOTAL	100%	100%

* Ancillaries, etc.

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