H1 FY14 Earnings presentation November 12, 2013

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 25, 2013 with the French Financial Markets Authority (l’Autorité des marchés financiers)).

2

AGENDA

POSITIONED TO BE A NEXT-GEN WINNER H1 H2 & FY14 FY15

3

OPEN WORLDS, EVER-MORE DOMINANT in action-adventure

in action-driving

in RPG in FPS

Open worlds take an ever-bigger share of the market 4

OPEN WORLDS, EVER-MORE DOMINANT

Open worlds will receive a MAJOR BOOST with PS4 & XboxOne 5

WHY OPEN WORLDS ARE SO APPEALING OPEN WORLDS, an IDEAL vehicle to implement the DIGITAL BREAKTHROUGHS

They ARE playing FIELDS

SYSTEMIC and COOP/SOCIAL at their

BEST Player is FREE to define his experience and how he interacts with friends LOW BARRIERS to entry as players play

at their OWN

RYTHM FLEXIBLE by essence EASIER to integrate UGC and to allow for PERSONNALIZED

CONTENT

6

WHAT’S NEEDED TO WIN NEXT GEN?

MAJOR production

CAPACITY

=

+

HIGH QUALITY games

+

REGULAR releases of

OPEN WORLDS

+

MASTERING of the DIGITAL

SKILLS

UBISOFT is READY to be a WINNER of this new generation

7

UBISOFT IS READY: MAJOR PRODUCTION CAPACITY

8 000 DEVELOPERS

LEAD & ASSOCIATE proven organization

8

UBISOFT IS READY: HIGH QUALITY GAMES Last 23 consoles titles 1 GTA 5 2 Rayman Legends 3 Rocksmith 2014 4 Diablo III 5 NBA 2K14 6 FIFA 14 7 Assassin's Creed 4 8 Lego Marvel Super Heroes 9 Skylander Swap Force 10 Battlefield 4 11 Splinter Cell's Blacklist 12 NHL 14 13 Saints Row IV 14 Just Dance 2014 15 Madden NFL 25 16 PES 14 17 WWE 2K14 18 Call of Duty Ghosts 19 Disney Infinity 20 Batman: Arkham Origins 21 Beyond: Two Souls 22 The Bureau: Xcom Declassified 23 Lost Planet 3

Average Metacritic

Developpers

97 90 88 87 86 86 85 84 84 83 83 81 81 79 78 78 77 75 75 74 71 68 60

TTWO Ubisoft Ubisoft Activision TTWO EA Ubisoft Warner Activision EA Ubisoft EA Deep Silver Ubisoft EA Konami TTWO Activision Disney Warner Quantic Dream TTWO Capcom

3 in the top 7 best rated titles

Average Rating at

85

Based on Metacritic average ratings, all platforms included (exc. Wii & WiiU), as of November 08, 2013

9

UBISOFT IS READY: REGULAR RELEASES OF OPEN WORLDS

Ubisoft has been preparing for this

CREATE MASSIVE

& LIVING

OPEN WORLDS

8 massive OPEN WORLDS released in 7 years!

HUGE & well COORDINATED production

CAPACITIES

10

UBISOFT IS READY: MASTERING OF THE DIGITAL SKILLS

DEEP INTEGRATION of the Online & Social

Ubisoft has been preparing for this LEVERAGING the EXPERIENCE accumulated over the last 4

YEARS

BREAKTHROUGHS Free to play – mobile – Facebook – online platforms – digital distribution …

11

UBISOFT IS READY: MASTERING OF THE DIGITAL SKILLS

BIG DATA

ANALYTICS

ALGORITHMS

BILLING STRUCTURE

24/24 SERVERS

ACQUISITION ENGAGEMENT MONETIZATION

LEVERAGING the EXPERIENCE

CROSS PLATFORMS

KPIs

Accumulated over the last 4 years

COMMUNITY MANAGEMENT

FREE TO PLAY

DIGITAL DISTRIBUTION

DIGITAL MARKETING

12

NEXTGEN : THE BEST OF CONSOLES AND ONLINE ENTERTAINMENT

N°1 – Watch Dogs N°2 – The Division

"The Division. How Ubisoft is making the Next Generation’s hottest project"

Best Action Game – Watch Dogs Best New Franchise – The Division Best Racing Game – The Crew

WatchDogs - The Crew - The Division Massive open world games that deeply and seamlessly

integrate online and social innovations into their gameplay

13

EXPAND THE VISIBILITY OF OUR BRANDS

100 MILLION VIEWERS in the US Estimated

LEADER 6 times out of 9 for 2-11 years old category

LOWERS CPA*! *Cost per acquisition

14

AGENDA

POSITIONED TO BE A NEXT-GEN WINNER H1 H2 & FY14 FY15

15

H1 FY14 : Sales

H1 Sales : 293 M€, +5% (+8% at constant exchange rates)

Driven by back-catalog sales and digital

H1 FY14

Back-catalog : 113 M€, +16% Solid sales from Far Cry 3 and Assassin’s Creed 3

Digital : 71 M€, +29% 24% of total sales

Driven by digital distribution, sale of items and DLCs

16

H1 FY14 : Financial summary

Gross margin flat at last year high level 69% Supported by better back-catalog + solid digital gross margins

H1 FY14

Non-IFRS Operating Loss : (98) M€ vs (58,2) M€ A 42 M€ increase in R&D due to higher depreciation of H1 titles + cancellation of projects

Cash flow from operations : stable at (144,8) M€ Reduced gap between R&D investments and R&D charges

17

H1 FY14 : Non-IFRS P&L € million, except for per share data

H1 2013-14

H1 2012-13 %

%

Sales

293,3

Gross profit

202,2

68,9

192,7

69,0

(138,9)

(47,4)

(96,8)

(34,7)

Selling expenses

(123,5)

(42,1)

(116,8)

(41,8)

G & A expenses

(37,8)

(12,9)

(37,2)

(13,3)

SG & A expenses

(161,3)

(55,0)

(154,0)

(55,2)

Non-IFRS operating income

(98,0)

(33,4)

(58,1)

(20,8)

Net Financial Income

(2,4)

(2,1)

Income Tax

38,2

22,2

Non-IFRS Net Income

(62,1)

(38,1)

Non-IFRS Diluted EPS

(0,59)

(0,40)

104 508

95 897

R&D expenses

Nbr of shares fully diluted (000)

279,2

 Gross margin up 10 M€ and flat in percentage point  Supported by better back catalogue and solid digital gross margins  R&D up 42 M€, + 13 percentage point  SG&A up 7 M€, flat in percentage point  variable marketing expenses slightly up at 88 M€ or 30% of sales (83 M€ and 30% in H1 FY13). Lower than expected as some expenses related to the Q3 titles were moved to fiscal Q3.  fixed structure costs slightly up at 73 M€ or 25% of sales (71 M€ and 25% in H1 FY13).  Income tax rate of 38%

18

H1 FY14 : R&D € million

H1 2013-14

H1 2012-13

107,8

61,4

Depreciation of external software-related production and licenses

6,2

7,9

Royalties

9,7

12,8

Non Capitalized R&D & others

15,2

14,8

Total R&D depreciation and royalties

138,9

96,8

Capitalized in-house software-related production

189,8

171,5

18,7

19,5

Royalties

9,7

12,8

Non Capitalized R&D & others

15,2

14,8

Total development investment

233,3

218,5

Depreciation of in-house software-related production

Capitalized external software-related production and licenses (excluding future commitments)

 45M€ depreciation increase explains the 42M€ increase in total R&D = higher depreciation of H1 titles +

cancellation of projects  Royalties down 3M€ = lower casual sales  7% increase in total cash R&D, or +10% at constant exchange rate

19

H1 FY14 : IFRS / non-IFRS reconciliation H1 2013-14 € million, except for per share data

Sales

IFRS

Adjustment

293,3

H1 2012-13 Non-IFRS

IFRS

293,3

279,2

Adjustment

Non-IFRS 279,2

(407,3)

16,0

(391,3)

(339,5)

2,1

(337,4)

Stock-based compensation

(4,3)

4,3

0,0

(2,1)

2,1

0,0

Non-Current expenses and income

(11,7)

11,7

0,0

0,0

0,0

0,0

0,0

0,0

0,0

0,0

(114,0)

16,0

(98,0)

(60,3)

2,1

(58,2)

Net Financial income

13,4

(15,8)

(2,4)

5,1

(7,2)

(2,1)

Income tax

38,2

0,0

38,2

22,9

(0,8)

22,2

Net Income

(62,3)

0,2

(62,1)

(32,3)

(5,8)

(38,1)

Diluted earnings per share

(0,60)

0,00

(0,59)

(0,34)

(0,06)

(0,40)

Total Operating expenses

Other operating income and expenses Operating Income

IFRS Non-Current expenses and income : (12) M€ • Includes: 11.7 M€ goodwill amortization and brand depreciation

IFRS Net financial income : 13 M€ • Includes: 4.4 M€ profit on sale of Gameloft shares + 11.4 M€ (non-cash) from adjustment of earn-out liabilities

20

H1 FY14 : Cash flows and closing cash position € million

H1 2013-14

H1 2012-13

104,5

84,6

Cash flows from operations

(144,8)

(146,4)

Change in WCR

(115,9)

(98,4)

Cash flows from operating activities

(260,7)

(244,8)

Net investment in capital assets

(16,3)

(10,9)

Net free cash flow

(276,9)

(255,7)

Net acquisitions/disposals

(3,0)

(0,1)

Proceeds from issue of capital and other financial flows

36,3

0,7

Disposal of Gameloft Shares

6,0

10,7

(8,7)

7,4

Decrease/(increase) in net debt

(246,3)

(237,0)

Closing cash position

(141,8)

(152,4)

Opening cash position

Effect of exchange rate fluctuations

 Despite 40 M€ drop in EBIT, Cash flows from Operations flat, reflecting reduced gap between R&D investments and R&D charges (94 M€ vs 122 M€ in H1 FY13)

 WCR increase due to Rayman and Splinter Cell releases at end of quarter

21

AGENDA

POSITIONED TO BE A NEXT-GEN WINNER H1 H2 & FY14 FY15

22

FY14 : TARGETS

Sales : 995 M€  1 045 M€

FY 14

Non-IFRS Operating Loss : (70) M€  (40) M€

Q3 sales : between 500 M€ and 540 M€

23

ASSASSIN'S CREED 4 BLACK FLAG, ANOTHER MAJOR ENTRY IN THE FRANCHISE ““Black Flag’s world is built to amaze. The fantasy it delivers sets new benchmarks

for open-world gaming” Edge, Nov. 2013

“The most ambitious AC game in years, an incredible adventure by any standard” Gamespot, Nov. 2013

The best rated Christmas title PS4, XboxOne, 360, PS3, WiiU, PC

Lead/Associate studios : Montreal – Annecy – Singapore Quebec City – Sofia – Bucharest 24

CASUAL: MANAGING THE TRANSITION

Casual over 20% of total FY14 sales Great business : 7 very profitable years for Ubisoft

Committed and adaptative approach Next generation to bring back casual gamers to living room

25

FISCAL Q4 : SOUTH PARK + RE-ORDERS OF NEXTGEN SKUS

+ Re-orders of NextGen skus

26

FY14 DIGITAL/ONLINE : BROADER DISTRIBUTION AND STRONGER LINE-UP

DIGITAL DISTRIBUTION

PC FREE-TO-PLAY, eSPORT

MOBILE & CONSOLE DIGITAL (Paymium & Free to Play)

+ DLCS FROM CONSOLES & PC GAMES 27

AGENDA

POSITIONED TO BE A NEXT-GEN WINNER H1 H2 & FY14 FY15

28

FY15 : A significantly stronger line-up

Calendar 2014 : consoles market expected to grow again

FY 15

Much stronger line up for Ubisoft (franchises and new brands)

Starting in Q1 with Watch Dogs

Non-IFRS Operating Income : minimum 150 M€

29

APPENDICES

We believe that our major

"

All that, combined with the Open-World

production capacity, strong of a

and Online expertise/know-how that

network of 26 international studios and

we have been growing steadily

over 8 000 developers, now optimized

internally make us believe that we will

with our lead and associate

benefit disproportionally from the

organization, will allow us to come

arrival of the new generation and from

with an enhanced pipeline of

the continued growth of the online

increasingly high quality franchises

market"

and new IPs. We will be able to release our franchises more and more regularly, providing solid visibility on our future revenue and profitability

Yves Guillemot, Ubisoft CEO

streams. 31

CURRENT GEN KEY SUCCESS FACTORS : QUALITY & REGULAR RELEASES

1 2

1 BRAND IN THE TOP 5 !

3 4 5 6 7 8 9

2 BRANDS IN THE TOP 12 !

10 11 12 13 14 15

2 OF THE 4 BIGGEST NEW IPS !

16 17 18 19 20

Cumulated WW Sales (value) XBOX360 / PS3 / WII / PC 2005-2012 (8 years)

Publishers

CALL OF DUTY MARIO FIFA SOCCER WII FIT* ASSASSIN'S CREED GUITAR HERO* HALO MADDEN NFL THE SIMS NEED FOR SPEED BATTLEFIELD JUST DANCE ROCK BAND MARIO KART WII LEGO GRAND THEFT AUTO WORLD OF WARCRAFT WWF/WWE ELDER SCROLLS SONIC

ACTIVISION BLIZZARD NINTENDO EA NINTENDO UBISOFT ACTIVISION BLIZZARD MSFT EA EA EA EA UBISOFT EA NINTENDO TELLTALE TAKE-TWO ACTIVISION BLIZZARD THQ BETHESDA SEGA

*includes hardware

F: Franchise

KEY LEARNINGS F F F NB NB NB F F F F F NB NB F NB F F F F F

NB: New Brands

FRANCHISES = LG TERM VISIBILITY

KEY FACTORS OF SUCCESS – Quality – Regular Releases – Deep Production Capacity

NEW CYCLES = OPPORTUNITY FOR NEW BRANDS

Far Cry – Watch Dogs – The Division – The Crew strong contenders for Next-Gen top 20

32 Physical retail sales : NPD, GFK

LONG TERM OPPORTUNITIES FOR OUR CORE AND CASUAL BRANDS

Ubisoft Core brands

Ubisoft Casual Brands

A highly committed, growing audience

> 1 billion people

On consoles On PC, mobile, tablet (Free to Play model) Social interactions

Value added

Multi-screens gaming

for player Item based model

Direct relation with player = knowledge (through analytics) Drive players acquisition

Ubisoft’s benefits

Increase players engagement & therefore monetization Expand to new territories (Asia, Turkey…) and to new platforms (mobile, tablet)

Grow ARPU and each brand’s profitability

33

ONLINE & SOCIAL

5

1

4

SYSTEMIC GAMEPLAY

BREAKTHROUGHS (details in appendices)

2

COOP & SOCIAL

USER GENERATED CONTENT

5

3

LOW BARRIERS TO ENTRY

ANALYTICS = PERSONALIZED EXPERIENCE

34

ONLINE & SOCIAL

1

SYSTEMIC GAMEPLAY

The BEST and MOST LUCRATIVE online games are built on SOLID SYSTEMIC FOUNDATIONS

COMMON RESOURCES for INFINITE entertainment combinations

 Huge world  Retention  LONG GAMING HOURS

LOWER development COST per hour played

35

ONLINE & SOCIAL

2

COOP & SOCIAL

PROGRESS and interact WITH FRIENDS Requires Updates in real time (things 360 & PS3 could not do)

Players COME BACK REGULARLY to the world

Players spend MORE TIME playing

LOWER the COST Per Acquisition (CPA)

36

ONLINE & SOCIAL

3

LOW BARRIERS TO ENTRY

TRY for FREE and KEEP your PROGRESS when you start to PAY

Seamless & FRICTIONLESS

ULTRA-ACCESSIBLE :    

INSTANT-ON platforms MOBILE interfaces SMALL SESSIONS that add to A LOT OF TIME CROSS PLATFORM

COOL

ACCESSIBLE to non gamers

ASYNCHRONOUS, WHENEVER with your FRIENDS

Asynchronous, an EASY ACCESS to MULTIPLAYER 37

ONLINE & SOCIAL

4

MORE CONTENT FROM UGC

ENHANCED MODING & UGC due to cross platform SHARING & to ALWAYS ON

INCREASES LIFESPAN of gaming experience

UGC CREATORS become

SUPER AMBASSADORS (Lower Cost Per Acquisition)

38

ONLINE & SOCIAL

5

ANALYTICS

KNOW PLAYERS (profile, what they play, what interests them most), track their sessions

= Offer CONTENT that MEETS their NEEDS

STRONGER RELATIONSHIP with gamers

a PERSONNALIZED experience increases

TARGETED MARKETING

ENGAGEMENT and

RETENTION

39