[PPT] - H1 FY17 EARNINGS November 3, 2016 Yves Guillemot, President and PowerPoint Presentation

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H1 FY17 EARNINGS

November 3, 2016

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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 July 22, 2016 with the French Financial Markets Authority (l’Autorité des marchés financiers)).

D I S C L A I M E R

Yves Guillemot, President and Chief Executive Officer Alain Martinez, Chief Financial Officer Jean-Benoît Roquette, SVP Investor Relations

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KEY TAKEAWAYS

BETTER PROFITABILITY PROFILE BUILDING AN INCREASINGLY RECURRING DEPENDABLE BUSINESS Expanding & strengthening portfolio of owned franchises Growing digital revenues that boost profitability STRONG ENGAGEMENT & PLAYER RECURRING INVESTMENT METRICS

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AGENDA

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A N I N C R E A S I N G LY R E C U R R I N G A N D D E P E N DA B L E B U S I N E S S A N N UA L G E N E R A L M E E T I N G H 1 F Y 1 7 P E R F O R M A N C E P E R S P E C T I V E S O N Q 3 A N D F Y 1 7 F Y 1 9

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INTERNALLY CREATED OWNED BRANDS

STRONG VISIBILITY ON THE FUTURE OF OUR FRANCHISES

*co-created or externally created

* * * *

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MULTI-STUDIOS ORGANIZATION

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UNRIVALLED CAPACITY TO RELEASE OPEN-WORLD GAMES ON A REGULAR BASIS

*FY15 for ATVI & Warner

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LIVE EXPERIENCES

ENGAGING THE PLAYER OVER THE LONGTERM

7 7

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LIVE EXPERIENCES

>10 MILLION

UNIQUE REGISTERED USERS EACH UBISOFT TOTAL MAUs

UP 44% YOY

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LIVE EXPERIENCES

PRO LEAGUE SEASON 3 RAINBOW SIX SIEGE: UNIQUE VIEWERS UP 130% VS PRIOR SEASON

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DISCIPLINED & WELL TARGETED ACQUISITIONS

ADDING TO THE GROUP BRICKS OF RECURRING REVENUES EXPERTISE

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H1 REFLECTS THIS STRATEGY’S BENEFITS

100% 80% 60% 40% 20% 0%

UPDATES DRIVE ENGAGEMENT HIGHER

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H1 REFLECTS THIS STRATEGY’S BENEFITS

TOM CLANCY’S RAINBOW SIX SIEGE PRAISED BY ITS FANS AND BY THE PRESS

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H1 REFLECTS THIS STRATEGY’S BENEFITS

ENGAGEMENT UP 51% WITH 1.4 UPDATE

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AGENDA

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A N N UA L G E N E R A L M E E T I N G A N I N C R E A S I N G LY R E C U R R I N G A N D D E P E N DA B L E B U S I N E S S H 1 F Y 1 7 P E R F O R M A N C E P E R S P E C T I V E S O N Q 3 A N D F Y 1 7 F Y 1 9 H 1 F Y 1 7 P E R F O R M A N C E

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ANNUAL GENERAL MEETING - SEPTEMBER 29, 2016

MASSIVE SUPPORT FROM OUR SHAREHOLDERS

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AGENDA

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H 1 F Y 1 7 P E R F O R M A N C E A N I N C R E A S I N G LY R E C U R R I N G A N D D E P E N DA B L E B U S I N E S S A N N UA L G E N E R A L M E E T I N G P E R S P E C T I V E S O N Q 3 A N D F Y 1 7 F Y 1 9

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H1 FY17 PERFORMANCE

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H1 FY17

H 1 S A L E S : 281 M€, up 36% yoy

Q2 Sales : 142 M€, beating target of 100 M€

D I G I TA L M O M E N T U M C O N T I N U E S : 202 M€, + 102%, 72% of total revenues Recurring Player Investment up 132%, at 95 M€ V E RY S O L I D B A C K - C ATA LO G : 256 M€, + 46%

A MORE RECURRING PROFILE

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H1 FY17 PERFORMANCE

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H1 FY17

74 M€ increase in Topline :  4 6 M € N O N - I F R S O P E R AT I N G I N C O M E I N C R E A S E 6 points gross margin improvement Solid costs control N E T C A S H : 38 M€ vs (156) M€ in H1 FY16

A MORE PROFITABLE PROFILE

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Gross margin up 72 M€, up 6 percentage point to 80%
Positive Digital impact
R&D up 24 M€ : releases of The Division & Far Cry Primal end of FY16 and development of Live operations
SG&A slightly up 2 M€ despite 74 M€ topline growth : good costs control
variable marketing expenses stable at 72 M€ (72 M€ in H1 FY16)
fixed structure costs slightly up to 93 M€ (90 M€ in H1 FY16)

H1 FY17: NON-IFRS P&L

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€ million, except for per share data

H1 2016-17 H1 2015-16 % %

Sales

281,4 207,3

Gross profit

226,4 80,5 154,3 74,4

Non-IFRS R&D expenses

(123,8) (44,0) (99,5) (48,0)

Non-IFRS Selling expenses

(113,4) (40,3) (111,1) (53,6)

Non-IFRS G & A expenses

(51,0) (18,1) (51,5) (24,9)

Non-IFRS SG & A expenses

(164,4) (58,4) (162,6) (78,4)

Non IFRS Current operating income

(61,8) (22,0) (107,8) (52,0)

Net Financial Income

(1,6) (5,9)

Income Tax

27,4 48,1

Non IFRS Net Income

(35,9) (65,6)

Non IFRS Diluted earnings per share

(0,30) (0,57)

Nbr of shares fully diluted

118 724 115 898

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15 M€ total depreciation increase : releases of The Division & Far Cry Primal end of FY16
13 M€ increase in Non Capitalized R&D & others : development of Live operations
7 M€ Capitalized R&D increase

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H1 FY17: R&D

€ million

H1 2016-17 H1 2015-16

Depreciation of in-house software-related production

72,1 55,3

Depreciation of external software-related production and licenses

7,2 8,9

Royalties

2,8 6,4

Non Capitalized R&D & others

41,7 29,0

Total R&D depreciation and royalties

123,8 99,5

Capitalized in-house software-related production

231,0 222,2

Capitalized external software-related production and licenses

11,2 13,1

(excluding future commitments) Royalties

2,8 6,4

Non Capitalized R&D & others

41,7 29,0

Total development investment

286,7 270,6

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H1 FY17: IFRS / NON-IFRS RECONCILIATION

Stock-based compensation : increase mostly related to recent employee plan
Non-current operating expenses : 3.5 M€ related to brand depreciation
Net Financial income : 2.3 M€ related to earn-out payments

€ million, except for per share data

H1 2016-17 H1 2015-16 IFRS Adjustment Non IFRS IFRS Adjustment Non IFRS Sales

281,4 281,4 207,3 207,3

Total Operating expenses

(371,7) 28,5 (343,2) (324,7) 9,5 (315,2)

Stock-based compensation

(24,9) 24,9 0,0 (6,0) 6,0 0,0

Non-current operating income and expenses

(3,6) 3,6 0,0 (3,5) 3,5 0,0

Operating Income

(90,3) 28,5 (61,8) (117,4) 9,5 (107,8)

Net Financial income

(3,9) 2,3 (1,6) (5,9) 0,0 (5,9)

Income tax

28,1 ( 0,7) 27,4 48,1 0,0 48,1

Net Income

(66,1) 30,2 (35,9) (75,2) 9,5 (65,6)

Diluted earnings per share

(0,56) 0,25 (0,30) (0,65) 0,08 (0,57)

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29 M€ increase in CF from Operation
315 M€ improvement in WCR : Releases of FarCry Primal and The Division in FY16 Q4
54 M€ net proceeds from employee shares plan
40 M€ OCEANE : the IFRS equity element that will be expensed over 5 years as financial charge

H1 FY17: CASH FLOWS & CLOSING CASH POSITION

€ million

H1 2016-17 H1 2015-16

Opening cash position

(41,7) 211,3

Non-IFRS Cash flows from operations

(180,2) (208,8)

Non-IFRS Change in WCR

189,4 (125,9)

Cash flows from Non-IFRS operating activities

9,2 (334,7)

Net investment in capital assets

(27,0) ( 24,2)

Net free cash flow

(17,7) (358,9)

Net acquisitions/disposals

0,0 (0,0)

Proceeds from issue of capital and other financial flows

5,2 16,8

Net acquisitions/disposals of own shares

54,1 (18,5)

Equity component

39,6

Effect of exchange rate fluctuations

(1,8) (6,1)

Decrease/(increase) in net debt

79,4 (366,8)

Closing cash position

37,7 (155,5)

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AGENDA

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P E R S P E C T I V E S O N Q 3 A N D F Y 1 7 A N I N C R E A S I N G LY R E C U R R I N G A N D D E P E N DA B L E B U S I N E S S A N N UA L G E N E R A L M E E T I N G H 1 F Y 1 7 P E R F O R M A N C E F Y 1 9

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S A L E S : between 1 610 and 1 670 M€ versus 1700 M€ prev. Digital: ~ 40% of total revenues Back Catalog: ~ 35% N O N - I F R S O P E R AT I N G I N C O M E : between 230 and 250 M€ versus 230M€ prev. N O N - I F R S O P E R AT I N G M A R G I N : between 14,3% and 15% versus 13,5% prev.

FY17

FY17 TARGETS ADJUSTED: IMPROVED PROFITABILTY

S A L E S : 560 M€, stable yoy

Q3

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EXPANSIONS

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H2 FY17: LINE-UP

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H2 FY17: LINE-UP

Q3 Q4

WATCH DOGS 2 STEEP JUST DANCE 2017

+ Assassin’s Creed Movie + Expansions The Division Survival Rainbow 6 Siege Operation Red Crow The Crew Calling all Units

FOR HONOR SOUTH PARK THE FRACTURED BUT WHOLE GHOST RECON WILDLANDS

+ Expansion The Division Last Stand

ASSASSIN’S CREED SYNDICATE RAINBOW SIX SIEGE JUST DANCE 2016

+ Expansion The Crew Wild Run

FAR CRY PRIMAL THE DIVISION

FY16 FY17

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AGENDA

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A N I N C R E A S I N G LY R E C U R R I N G A N D D E P E N DA B L E B U S I N E S S A N N UA L G E N E R A L M E E T I N G H 1 F Y 1 7 P E R F O R M A N C E F Y 1 9 P E R S P E C T I V E S O N Q 3 A N D F Y 1 7

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R E V E N U E S : 2.2BN€

FY19

N O N - I F R S O P E R AT I N G I N C O M E : 20% F R E E C A S H F LOW : ~300M€

3 YEARS PLAN: ON TRACK

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APPENDICES

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20 YEARS OF STRONG VALUE CREATION

Source: FactSet as of May 9, 2016 IPO as of July 1, 1996

TOTAL SHAREHOLDER RETURN SINCE IPO

(rebased to 100)

Since IPO 5-year 3-year 2-year 1-year UBISOFT +1,527% +610% +227% +115% +14% NASDAQ* +333% * +106% +37% +15% +4% CAC40 Net Return +246% +58% +13% +12% (5%) Euro Stoxx Media Supersector Return +87% +86% +19% +12% (9%)

Source: FactSet as of October 31, 2016 IPO as of July 1, 1996 * Excludes dividends

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 AS THE LEADING 3RD PARTY PUBLISHER ON NINTENDO HOME CONSOLES FOR THE PAST 10 YEARS, UBISOFT WILL BENEFIT DISPROPORTIONATELY

NINTENDO SWITCH TRUE INNOVATION

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A MORE DEPENDABLE AND PROFITABLE INDUSTRY

32 Xbox 360/PS3 transition Xbox One/PS4 transition

RISING BARRIERS TO ENTRY DIGITALIZATION IMPACT

X

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Solo Centric titles Multi Centric titles

AVERAGE DAUS

(AFTER 3 MONTHS) 33

Solo Centric titles Multi Centric titles

AVERAGE PRI*

(AFTER 3 MONTHS) * Player recurring investment

MULTIPLAYER DRIVES ENGAGEMENT WHICH DRIVES MTX

[at scale]

FY19: KEY ASSUMPTIONS – DIGITAL

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(REVENUE BREAKDOWN PER FISCAL YEAR) 100 11 100 44 Year 1 Year 2 Solo Centric title Live title*

LIVE SERVICES BRING MORE PERSISTENT REVENUES

* The Crew 34