UBISOFT REPORTS THIRD-QUARTER 2023-24 SALES

Q3 net bookings slightly ahead of target

Sustained performance driven by high-quality new releases and back-catalog strength

2023-24 targets confirmed

FY25 release slate to include Star Wars Outlaws™ and Assassin’s Creed

Codename Red

Net bookings for the first nine months of fiscal 2023-24

In €m

9 months

2023-24

Reported

change vs.

2022-23

% of total net bookings

9 months

2023-24

9 months

2022-23

IFRS 15 sales

1,442.5

-4.1%

Net bookings

1,448.6

+1.6%

Digital net bookings

1,185.0

-2.1%

81.8%

84.8%

PRI net bookings

688.6

-18.2%

47.5%

59.0%

Back-catalog net bookings

1,054.6

+39.7%

72.8%

52.9%

Third fiscal quarter: Net bookings of €626.2 million, slightly ahead of guidance at around €610 million.

Excluding mobile that included the recognition related to the Assassin’s Creed

Jade licensing partnership

last year, net bookings were up 43.1% year-on-year in Q3 and 45.1% year-on-year in the first nine months,

driven by high-quality new releases and back-catalog strength.

Strong sequence of high-quality new releases designed to be long sellers

▪ Assassin’s Creed

Mirage successfully harnessed the strength of the Assassin’s Creed brand to

deliver a back-to-the-roots experience including the return of fan-favorite gameplay.

▪ Avatar: Frontiers of Pandora™ set an industry benchmark in terms of world creation and was

favorably received by players, positioning the game to be a long-term seller.

▪ The Crew

Motorfest, released in Q2, continues to outperform The Crew 2 on acquisition, activity,

monetization and net bookings metrics since launch, on a comparable basis, thus growing the

franchise.

▪ Prince of Persia™: The Lost Crown, released on January 18, has been unanimously praised by

critics and players in reviving an iconic brand.

Q3 Back-catalog: Strong performance demonstrating the power of major brands and Live services

▪ Tom Clancy’s Rainbow Six

Siege: Continued positive momentum with net bookings up sharply

vs. last year and strong growth in both number of players and session days per player, with playtime

up nearly 60% year-on-year.

▪ Assassin’s Creed

brand: Overperformance driven by robustness of the brand that benefitted from

the halo of the successful Mirage launch.

2023-24 targets confirmed: Strong topline growth and approximatively €400 million of non-IFRS

operating income

Paris, February 8, 2024 – Today, Ubisoft released its sales figures for the third quarter of fiscal 2023-24,

i.e. the three months ended December 31, 2023.

Yves Guillemot, Co-Founder and Chief Executive Officer, said “Ubisoft recorded a solid third quarter, with

net bookings slightly ahead of our expectations. This quarter provided us with positive momentum and marks

the beginning of our turnaround to consistently creating and delivering high-quality, long-lasting games.

Our performance was driven by the releases of Assassin’s Creed Mirage and Avatar: Frontiers of Pandora,

by the continued strong trajectory of The Crew Motorfest, as well as by the robust performance of our back-

catalog. The latter was propelled by the success of Rainbow Six Siege, which achieved sharp net bookings

and playtime growth, and by the overall Assassin’s Creed franchise that benefitted from the launch of

Assassin’s Creed Mirage. The robustness and longevity of our back-catalog is a tribute to the attention we

have had in consistently delivering high-quality titles that are loved by fans.

I want to praise the outstanding work done by Ubisoft’s teams. They strove to offer quality games that align

with our ambition to bring great entertainment to players. Players’ very positive response to our latest major

releases, such as Assassin’s Creed Mirage and The Crew Motorfest shows that we are indeed moving in the

right direction. We also made great progress in terms of visual quality and universe richness thanks to our

proprietary Snowdrop engine, which was used in developing Avatar: Frontiers of Pandora, a game that set

a new industry benchmark in terms of world creation.

The fourth quarter represents an opportunity to continue to build on this momentum, with the launch of

Prince of Persia: The Lost Crown, a game that illustrates Ubisoft’s capacity to revive iconic brands, and the

release of Skull and Bones, which generated increasingly positive engagement following its end-game and

post-launch reveal. This new brand has the potential to establish itself as a new Live experience over the

long term. The upcoming launch of XDefiant will take us a step further into the world of Free-to-play, in line

with our strategy of strengthening our position in Live services and increasing the recurrence of our business.

We are also planning significant partnerships, including the non-exclusive licensing of the Activision Blizzard

streaming rights that we acquired last October.

Looking at our overall organization, we continue to actively roll out transformation initiatives across the

Group in order to respond to the market’s evolution and accelerate the execution of our strategy while

reducing our cost structure. In Q3, we made further progress in streamlining our operations and, at the

same time, saw overall talent retention continue to improve. We are firmly committed to continuing along

this path in the months ahead to deliver on our cost-reduction targets and better position ourselves for

collective success in the long term.

Moving forward, we're gearing up for a very promising line-up for fiscal year 2025, including the upcoming

release of Star Wars Outlaws in 2024, which should be a major milestone in the video game industry,

especially given the undeniable appeal of this legendary franchise that will be coming for the first time to

the Open World territory, as well as Assassin’s Creed Codename Red, set in the long-awaited feudal Japan

universe. We look forward to revealing the full extent of the creative capabilities of Ubisoft's teams, who are

working hard to make these games a success that will live up to gamers' expectations”.

Q3 Activity

New Releases

Assassin’s Creed Mirage was released on October 5. Through a more condensed story than the usual

brand proposition, the game was positively received by critics and players alike, delivering on the ‘back-to-

the-roots’ fantasy, with a narrative-driven action-adventure experience focused on parkour and stealth that

have defined the franchise for more than fifteen years.

Avatar: Frontiers of Pandora was released on December 7 and set an industry benchmark in terms of

world creation with a breathtaking recreation of Pandora, an immersive Na’vi experience and a canon

addition to the Avatar story, showcasing the power of Ubisoft’s Snowdrop engine and new gen technology.

The release achieved a solid Metacritic user score and was met with strong community reception. Players

praised the faithful fidelity to the Avatar IP and the freedom to explore the world, positioning the game to

be a long-term seller, notably thanks to its post-launch roadmap and the growing new gen consoles install

base.

The Crew Motorfest, released in Q2, continues to trade well with acquisition, activity, monetization and

net booking metrics outperforming The Crew 2 on a comparable basis, setting the brand on a solid long-

term growth trajectory.

Back-catalog

In a more competitive environment for first-person shooter Live services, Rainbow Six Siege posted

another very strong performance this quarter, with net bookings up sharply versus last year, driven by very

robust growth in both active players and session days per player, and playtime up close to 60% year-on-

year. These solid trends continued in the new year, with levels of activity and engagement growing year on

year in January and notably session days growing around 20% year-on-year since mid-January. Elsewhere

in the back-catalog, the Assassin’s Creed franchise outperformed this quarter, benefiting from the release

of Assassin’s Creed Mirage.

Beyond Q3, Prince of Persia: The Lost Crown was released on January 18. The game, which leverages

the strength of the Prince of Persia brand, was unanimously praised by players and critics thanks to its best-

in-class level design and the engaging and deep combat gameplay. This launch is a compelling illustration

of Ubisoft’s capacity to revive iconic brands using a modern and popular gameplay style such as the

metroidvania genre.

Skull and Bones™ will launch on February 16. The Open Beta, which starts today, will run until February

11 and will allow players to carry over their progression in the main game. The Open Beta is an opportunity

for all players to experience this unique multiplayer-first open world set in the Indian Ocean and inspired by

the Golden Age of Piracy, and to dive into its thrilling naval combat and RPG progression. Built as a Live

game, Skull and Bones will regularly deliver new, free content to players. The recently unveiled endgame

and post-launch plans received an increasingly positive reception from players, who praised the epic

gameplay they will get to experience at launch and beyond.

Transformation Initiatives

In order to rationalize its operations and enhance its collective efficiency, the Group continued to undergo

targeted restructurings in certain areas. In November, its Canadian general and administrative (G&A)

functions were reorganized and streamlined to create a more harmonized experience for employees and

teams across the country and the global IT team reprioritized how it supports the business and reduced its

overall headcount. Tight control on recruitments alongside transformation streams across the company led

to a pursued headcount reduction over the quarter. Over the period, overall talent retention continued to

steadily improve month-on-month, as observed since September 2022.

Convertible Bond Issuance

On November 28, 2023, Ubisoft successfully completed an offering of bonds convertible into new shares

and/or exchangeable for existing shares (“OCEANEs”) due 2031 by way of a public offering to qualified

investors for a nominal amount of €494.5 million. The net proceeds will be used for general corporate

purposes, including increased financial flexibility and refinancing of the existing debt. This included the partial

repurchase below par of approximately €250 million of the outstanding OCEANEs due September 2024,

representing approximately 50% of the aggregate principal amount. This transaction has delivered very well

optimized terms across the board as it has enabled to extend Ubisoft’s debt maturity profile from 3 years to

4.5 years while securing a 2.875% interest rate over 8 years with a conversion premium of 47.5%.

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 appended to this

press release.

Sales and net bookings

In € millions

9 months

2023-24

2022-23

2023-24

2022-23

IFRS 15 sales

606.4

772.5

1,442.5

1,503.7

Deferred revenues related to IFRS 15

19.8

(45.6)

6.1

(77.3)

Net bookings

626.2

726.9

1,448.6

1,426.3

Digital net bookings

468.2

568.4

1,185.0

1,209.9

PRI net bookings

174.4

419.3

688.6

841.7

Back-catalog net bookings

359.9

249.4

1,054.6

754.8

IFRS 15 sales for the third quarter of 2023-24 came to €606.4 million, down 21.5% (19.5% at constant

exchange rates

). For the first nine months of 2023-24, IFRS 15 sales amounted to €1,442,5 million, down

4.1% (1.9% at constant exchange rates).

Net bookings for the third-quarter 2023-24 totaled €626.2 million, slightly ahead of the Group’s target of

around €610 million and representing a decrease of 13.8% (11.7% at constant exchange rates). For the

first nine months of 2023-24, net bookings stood at €1,448.6 million, up +1.6% (3.9% at constant exchange

rates).

Outlook

Full-year 2023-24

The company confirms its financial targets of strong topline growth and full year non-IFRS operating income

of approximately €400 million.

Q4 net bookings are expected sharply up, leading to record annual net bookings. This quarter includes a

line-up with Skull and Bones and Prince of Persia: The Lost Crown on the premium side, a limited

contribution from XDefiant on the free-to-play side, follow-on sales of prior quarters releases, a strong back

catalog relying on a heavy Live services program and significant partnerships including the non-exclusive

licensing of streaming rights for the console & PC Activision Blizzard games.

Full-year 2024-25

The extent of the FY2024-25 line-up will be revealed in May and will notably include Assassin’s Creed

codename Red and Star Wars Outlaws on the premium side and The Division

Resurgence and Rainbow Six

Mobile on the free-to-play side.

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 year.

Conference call

Ubisoft will hold a conference call today, Thursday February 8, 2024, at 6:15 p.m. Paris time/5:15 p.m. London

time/12:15 p.m. New York time.

The conference call can be accessed live and via replay by clicking on the following link:

https://edge.media-server.com/mmc/p/7qyfw8ud

Contacts

Investor Relations

Alexandre Enjalbert

Head of Investor Relations

+ 33 1 48 18 50 78

alexandre.enjalbert@ubisoft.com

Press Relations

Michael Burk

VP, Corporate Communication

michael.burk@ubisoft.com

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 information 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 approved by Board of Directors and have not been audited by the Statutory Auditors. (Additional

information is provided in the most recent Ubisoft Registration Document filed on July 20, 2023 with the French Financial

Markets Authority (l’Autorité des Marchés Financiers)).

About Ubisoft

Ubisoft is a creator of worlds, committed to enriching players’ lives with original and memorable entertainment

experiences. Ubisoft’s global teams create and develop a deep and diverse portfolio of games, featuring brands such as

Assassin’s Creed®, Brawlhalla®, For Honor®, Far Cry®, Tom Clancy’s Ghost Recon®, Just Dance®, Rabbids®, Tom

Clancy’s Rainbow Six®, The Crew® and Tom Clancy’s The Division®. Through Ubisoft Connect, players can enjoy an

ecosystem of services to enhance their gaming experience, get rewards and connect with friends across platforms. With

Ubisoft+, the subscription service, they can access a growing catalog of more than 100 Ubisoft games and DLC. For the

2022–23 fiscal year, Ubisoft generated net bookings of €1.74 billion. To learn more, please visit: www.ubisoftgroup.com.

APPENDICES

Definition of non-IFRS financial indicators

Net bookings corresponds to sales restated for the services component and including unconditional amounts related to

license or distribution agreements recognized independently of the achievement of performance obligations.

Player Recurring Investment (PRI) corresponds to sales of digital items, DLC, season passes, subscriptions and

advertising.

Non-IFRS operating income calculated based on net bookings corresponds to operating income less the following items:

- Stock-based compensation expense arising on free share plans, group savings plans and/or stock options.

- Depreciation of acquired intangible assets with indefinite useful lives.

- Non-operating income and expenses resulting from restructuring operations within the Group.

Breakdown of net bookings by geographic region

2023-24

2022-23

9 months

2023-24

9 months

2022-23

Europe

43%

31%

40%

30%

Northern America

47%

53%

49%

52%

Rest of the world

10%

16%

11%

18%

TOTAL

100%

Breakdown of net bookings by platform

2023-24

2022-23

9 months

2023-24

9 months

2022-23

CONSOLES

62%

36%

63%

39%

30%

11%

24%

16%

MOBILE

43%

35%

Others*

10%

TOTAL

100%

*Ancillaries, etc.

Title release schedule

quarter (January – March 2024)

PACKAGED & DIGITAL

PRINCE OF PERSIA™: THE LOST CROWN

AMAZON LUNA, PC,

PLAYSTATION

4, PLAYSTATION

XBOX ONE, XBOX SERIES X/S,

NINTENDO SWITCH™

SKULL AND BONES™

AMAZON LUNA, PC,

PLAYSTATION

5, XBOX SERIES X/S

DIGITAL ONLY

FOR HONOR

: Year 8 – Season 1

PC, PLAYSTATION

4, XBOX ONE

RIDERS REPUBLIC™: Season 10

AMAZON LUNA, PC,

PLAYSTATION

4, PLAYSTATION

XBOX ONE, XBOX SERIES X/S

SKULL AND BONES™: Season 1

AMAZON LUNA, PC,

PLAYSTATION

5, XBOX SERIES X/S

TOM CLANCY’S RAINBOW SIX

SIEGE: Year 9 – Season 1

AMAZON LUNA, PC,

PLAYSTATION

4, PLAYSTATION

XBOX ONE, XBOX SERIES X/S

TOM CLANCY’S THE DIVISION

2: Year 5 - Season 3

AMAZON LUNA, PC,

PLAYSTATION

4, XBOX ONE

THE CREW

2: Title Update 18

AMAZON LUNA, PC,

PLAYSTATION

4, PLAYSTATION

XBOX ONE, XBOX SERIES X/S

THE CREW

MOTORFEST: Season 3

AMAZON LUNA, PC,

PLAYSTATION

4, PLAYSTATION

XBOX ONE, XBOX SERIES X/S

UNO

PARTY DLC

AMAZON LUNA, PC,

PLAYSTATION

4, PLAYSTATION

XBOX ONE, XBOX SERIES X/S,

NINTENDO SWITCH™

VALIANT HEARTS: COMING HOME

PC,

PLAYSTATION

4, PLAYSTATION

XBOX ONE, XBOX SERIES X/S,

NINTENDO SWITCH™

XDEFIANT: Season 0

PC,

PLAYSTATION

5, XBOX SERIES X/S