2018 REGISTRATION DOCUMENT and Annual Report Contents Message from the Chairman 3 5 Corporate social responsibility 109 5.1 Methodology note on employee-related, environmental and societal reporting 110 Statement by the person 5.2 Corporate Social Responsibility responsible for the Registration strategy 113 Document 4 5.3 Employee-related indicators 113 5.4 Environmental indicators 125 1 Key fi gures 5 5.5 Societal indicators 132 5.6 Duty of Care 137 1.1 Quarterly and annual consolidated sales 6 5.7 Independent third party’s report 138 1.2 Sales by platform 7 1.3 Sales by geographic region 8 6 Financial statements 141 6.1 Consolidated fi nancial statements 2 Group presentation 9 as at March 31, 2018 142 6.2 Statutory Auditors’ report on the 2.1 Group profi le and strategy 10 consolidated fi nancial statements 204 2.2 History 10 6.3 Separate fi nancial statements 2.3 Financial year highlights 11 of Ubisoft Entertainment SA for the year ended March 31, 2018 209 2.4 Subsidiaries and equity investments 12 6.4 Statutory Auditors’ report on 2.5 Research and development, the separate fi nancial statements 240 investment and fi nancing policy 15 6.5 Statutory Auditors’ special report 2.6 2017/2018 performance review on regulated agreements and (non-IFRS data) 17 commitments 244 2.7 Outlook 20 6.6 Ubisoft (parent company) results for the past fi ve fi nancial years 246 3 Risks and internal control 21 7 Information on the Company 3.1 Risk factors 22 and its Capital 247 3.2 Risk management and internal control procedure 29 7.1 Legal information 248 7.2 Share capital 251 4 Corporate governance report 35 7.3 Share ownership 258 7.4 Securities market 264 4.1 Corporate governance 36 7.5 Financial communication 267 4.2 Compensation for the administrative and management bodies 67 4.3 Auditors 108 8 Cross-reference tables 269 Registration Document cross-reference table 270 Management report cross-reference table 272 CSR cross-reference table 273 Annual report cross-reference table 275 Registration Document 2018 and Annual Report The French version of this Registration Document was fi led on June 6, 2018 with the Autorité des Marchés Financiers (AMF) in accordance with Article 212-13 of its General Regulation. It may be used in connection with a fi nancial transaction if accompanied by a memorandum approved by the Autorité des Marchés Financiers. This document has been prepared by the issuer and is binding upon its signatories. Pursuant to Article 28 of Commission Regulation (EC) No. 809/2004, the following information is incorporated by reference in this Registration Document: ♦ the consolidated and separate fi nancial statements and the relevant Statutory auditors’ reports for the fi nancial year ended March 31, 2017, presented in the Registration Document fi led on July 21, 2017 under No. D.17-0787, pages 125 to 219; ♦ the consolidated and separate fi nancial statements and the relevant Statutory auditors’ reports for the fi nancial year ended March 31, 2016, presented in the Registration Document fi led on July 22, 2016 under No. D.16-0729, pages 103 to 181. - 2018 Registration Document 1 2 - 2018 Registration Document Message from the Chairman Dear Shareholders and Partners, Ubisoft performed extremely well across the board during the The short and medium terms are indeed exciting both in terms of previous fi nancial year. Following the comeback of Assassin’s Creed® growth potential and the increase in our profi tability. Opportunities Origins, the success of Mario + Rabbids® Kingdom Battle and the abound: from our growth capacity in the digital realm to our potential continued excellent performance of multiplayer games Rainbow in the promising PC and mobile segments, particularly in China, Six® Siege, The Division® and Ghost Recon® Wildlands, our last without forgetting our progress in esports. release of the year, Far Cry® 5, became the second most successful In the longer term, new types of games, particularly those involving launch in the Company’s entire history. Players, who are the key streaming, should signifi cantly increase our addressable market and to our strategy, have hailed of the quality of our games and our permit our fl agship brands to become playable on all media and, ever-growing engagement with the communities. These results potentially, accessible to half of the world’s population. Through our refl ect the determination of the Ubisoft teams to continuously investments in Ubisoft Club, our online services platform, and in improve player experience post-release. artifi cial intelligence, which is undergoing exponential growth, we Accordingly, we exceeded our objectives regarding sales, up by 19% will be able to adapt game experiences according to player profi les, at €1,732 million, and non-IFRS operating profi t, which reached with the objective of providing ever-richer experiences. To develop a record level of €300 million. The Group’s digital transformation our expertise in these areas of excellence, we are opening new studios continues to grow at a pace exceeding our expectations and now in regions that offer both special access to universities on the cutting represents 58% of our total sales. This success has resulted in much edge of these fi elds and to a dynamic talent pool. This strategy is greater visibility than in the past, reduced our dependence on new possible thanks to our multi-studio organization, which facilitates a releases and has had a very positive impact on our profi tability. Our collaboration among our different teams that is unparalleled in the games now benefi t from longer development periods, which have industry, with particular attention paid to the sharing of knowledge, had a positive impact on their quality and fi nancial contribution, expertise and technologies. as demonstrated by the success of Assassin’s Creed® Origins I would also like to once again note the change in our stock ownership and Far Cry 5. over the past year. It has specifi cally resulted in two new long term This performance is the result of our long term strategy based on the shareholders who are true experts in the video game industry and creation and ownership of our brands and on continued investment the world of technology. This positive change was made possible in our teams and their skills. We have established an organization by the excellent execution of our strategy and the decisive support for our production on which we can rely to deliver both high quality of our talent pool, our players and our shareholders. I would like games and solid online services. We are building a Group that is to extend my warmest thanks to each of you. increasingly adaptable and responsive, relying on the sustained and acknowledged commitment of player communities, which are real partners for our teams. These differentiating factors will be Yves Guillemot major assets for Ubisoft in the years to come, enabling it to seize all Chairman and Chief Executive Offi cer opportunities created by future changes in the industry. - 2018 Registration Document 3 Statement by the person responsible for the Registration Document This is a free translation into English of the person responsible for the Registration Document issued in French language and it is provided solely for the convenience of English speaking readers. Sir, I confi rm, after having taken all reasonable measures to this effect, The Statutory auditors’ report on the consolidated fi nancial that the information contained in this Registration Document is, statements for the fi nancial year ended March 31, 2018 appears to my knowledge, accurate and free from any omission likely to on pages 204 and 208 of this Registration Document. It contains an affect its import. observation drawing the attention of the reader to the “Comparability of fi nancial statements” note in the Notes to the consolidated I confi rm that, to my knowledge, the fi nancial statements have been fi nancial statements which shows the impact of the early application prepared in accordance with the applicable accounting standards of IFRS 9 as of April 1, 2017. and provide a true and fair view of the assets and liabilities, fi nancial position and results of the Group and all companies consolidated The Statutory auditors have certifi ed without reservation the therein, and that the management report information listed on consolidated fi nancial statements of the past three fi nancial years. page 272 of Chapter 8 is a true presentation of the evolution of the The Statutory auditors’ report on the separate fi nancial statements business activity, revenue and fi nancial position of the Group and for the fi nancial year ended March 31, 2016 (pages 180 and 181 of all companies consolidated therein, as well as a description of the this Registration Document) contains no comment. main risks and uncertainties facing them. The Statutory auditors’ report on the separate fi nancial statements I have obtained a completion letter from the Statutory auditors for the fi nancial year ended March 31, 2017 (pages 216 and 217 of in which they confi rm that they have examined the information this Registration Document) contains no comment. relating to the fi nancial position and statements presented in this Registration Document, and that they have read the document in The Statutory Auditors’ report on the separate fi nancial statements its entirety. for the fi nancial year ended March 31, 2018 (pages 240 and 243 of this Registration Document) contains an observation drawing the The historical fi nancial information presented in this Registration attention of the reader to the “Comparability of fi nancial statements” Document was the object of Statutory auditor’s reports which appear note of the Notes to the separate fi nancial statements regarding on pages 152 to 153 and 185 to 186 of the 2016 and 2017 Registration the fi rst application of ANC [Accounting Standards Commission] Documents.