FY12 Earnings Presentation May 15, 2012 Yves Guillemot, President and Chief Executive Officer Alain Martinez, Chief Financial Officer Jean-Benoît Roquette, Head of Investor Relations Disclaimer 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 28, 2011 with the French Financial Markets Authority (l’Autorité des marchés financiers)). 2 Summary FY12 : Performance driven by strong performance from Just Dance, Assassin’s Creed and online/digital FY12 : Operating income up 90%, at the top end of initial guidance FY12 : Solid financial situation of 85 M€ with positive operating cash flows FY12 : Continued investments in online opportunities and next generation of consoles FY13 : A turning point FY13 : Significantly stronger offer for core gamers + re-enters the shooter genre + continued online/digital momentum FY13 : Strong topline and profitability growth expected from core games and online/digital FY13 : > 40% operating income growth based on midpoint of guidance Longer term : Significant opportunities with next generation of consoles and Free-to-Play market 3 Agenda FY12 performance FY13, a turning point Longer term 4 FY12 : Sales driven by Just Dance, Assassin’s Creed and Online/Digital Sales : 1 061 M€, +4% at constant exchange rate Total Core sales : 578 M€ Strong performance : Assassin’s Creed − Settlers Online Critical success : Driver San-Francisco − Rayman Origins FY12 Total Casual sales : 483 M€ Strong performance : Just Dance − Howrse Successful launch : Rocksmith Online/Digital (Core + Casual) sales : 80 M€, up 111% 5 FY12 : Sales In million € Core Brands Casual Brands Total sales FY11 600 438 1 038 FY12 578 483 1 061 FY12 vs FY11 -4% +10% +2% Core & Casual In million € Core Retail Casual Retail Total sales Online/Digital FY11 565 435 38 1 038 FY12 511 470 80 1 061 FY12 vs FY11 -10% +8% +111% +2% 6 FY12 : Margins continue to improve Gross margin up almost 3 percentage points Thanks to better online and back-catalog Current operating income : 56 M€, +90% Top end of guidance provided 12 months ago (40 M€ − 60 M€) FY12 Solid Net cash position : 85 M€ Better than anticipated Operating Cash flows with continued : Effective WCR management Strong investment in future opportunities 7 FY12 : Profitability up 2011-12 2010-11 € million % €m % Sales 1 061,3 1 038,8 Gross profit 718,1 67,7 673,6 64,8 R&D expenses (348,4) 32,8 (363,5) 35,0 Selling expenses (238,4) 22,5 (212,9) 20,5 G&A expenses (75,3) 7,1 (67,9) 6,5 SG&A expenses (313,7) 29,6 (280,8) 27,0 Current operating income 56,0 5,3 29,4 2,8 . Gross margin up almost 3 percentage point and +44.5 M€ on +22.5 M€ sales . Continued improvement of back-catalog gross margin + online sales momentum . R&D down 15.1 M€ . Lower depreciation due to fewer HD releases, partly compensated by . royalties increase (dance) and increase in online related expenses . Anticipated depreciation of a FY13 title for an amount similar to the 20 M€ that had been anticipated in FY11 . SG&A up 32.9 M€ . variable marketing expenses up at 177.1 M€ or 16.7% of sales (160.4 M€ and 15.4% in FY11). Related to dance and online growth. fixed structure costs at 136.6 M€ or 12.9% of sales (120.3 M€ and 11.5% in FY11), due mostly to higher online related costs. 8 FY12 : Capitalized investments slightly up € million 2011-12 2010-11 Depreciation of in-house games 206,1 240,9 Depreciation of external games and licences 64,4 61,2 Royalties 51,2 45,1 Non Capitalized R&D & others 26,7 16,4 Total Current R&D depreciation and royalties 348,4 363,5 Total Non Current R&D 0,0 85,4 Total R&D depreciation and royalties 348,4 448,9 Capitalized software-related production 301,8 287,5 Investment in external production and licenses 48,1 51,5 (excluding future commitments) Royalties 51,2 45,1 Non Capitalized R&D & Others 26,7 16,4 Total development investment 427,7 400,4 . Depreciation down : 31.6 M€, due to product mix (less high-end releases), see prior slide . Increase in royalties : dance titles . Increase in Non Capitalized R&D : cash expenses related to ramping investments on online (new contents for released online games, etc…) . 3% increase in internal and external capitalized investment . Increased gap between current R&D depreciation and capitalized investments : +79 M€ . Capitalized R&D : stands at year end at 415 M€ vs 350 M€ 9 FY12 : Net Income up € million 2011-12 2010-11 Current operating income 56,0 29,4 Fair Value Variation 0,0 (1,4) Stock-based compensation (10,4) (11,1) Other revenues (expenses) 0,0 (97,4) Operating income/(loss) 45,6 (80,5) Net financial income/(expense) 2,5 ( 3,7) Share of profit of associates 0,0 0,0 Net income tax (10,8) 32,1 Net income 37,3 (52,1) Diluted earnings/(loss) per share (€) 0,39 (0,54) Nbr of shares fully diluted 95 632 96 961 . Financial income of 2.5 M€ : . Interest charge: (2.5) M€ vs (5.0) M€ in FY11 . FY11 : a (3.6) M€ charge related to sell-off on tax credit . 8.5 M€ gains on GLFT shares (3.2 million shares sold, 3.2 million still owned) vs a 5,7 M€ gains in FY11 . Foreign exchange : (3.4) M€ vs (4.3) M€ loss in FY11 . Tax rate 18,4% excl. stock base compensation : impact Gameloft shares + various other tax adjustments . Nbr of shares fully diluted : 95.6 million. As of today, no impact from Equity Line and BSAs 10 FY12 : Net income before non recurring elements and stock-based compensation 2011-12 2010-11 In million €, Before non recurring Before non recurring except for per share data As reported Adjustment elements and stock As reported Adjustment elements and stock based based compensation compensation Sales 1 061,3 1 061,3 1 038,8 1 038,8 Total Operating expenses ( 1 015,7) 10,4 ( 1 005,3) ( 1 119,3) 109,9 ( 1 009,5) Stock-based compensation ( 10,4) 10,4 0,0 ( 12,6) 12,6 0,0 Fair Value Variation 0,0 0,0 0,0 ( 1,4) 1,4 0,0 Other operating income and expenses 0,0 0,0 0,0 ( 95,9) 95,9 0,0 Operating Income 45,6 10,4 56,0 ( 80,5) 109,8 29,3 Net Financial income 2,5 ( 8,5) ( 6,0) ( 3,7) ( 6,0) ( 9,7) Income tax ( 10,8) ( 1,9) ( 12,6) 32,0 ( 30,3) 1,7 Net Income 37,3 0,0 37,4 ( 52,1) 73,5 21,4 Diluted earnings per share 0,39 0,00 0,39 ( 0,54) 0,76 0,22 11 FY12 : Closing cash position better than anticipated € million 2011-12 2010-11 Opening cash position 99,2 41,3 Cash flows from operations (27,0) 28,3 Change in WCR 35,2 25,9 Cash flows from operating activities 8,2 54,2 Net investment in capital assets (25,5) ( 22,0) Net free cash flow (17,3) 32,2 Net acquisitions/disposals (17,5) ( 4,7) Sale of Gameloft Shares 13,7 10,5 Proceeds from issue of capital and other financial flows (1,3) 1,5 Tax credit sales 0,0 21,9 Effect of exchange rate fluctuations 7,8 ( 3,4) Decrease/(increase) in net debt (14,6) 57,9 Closing cash position 84,6 99,2 . Continued improvement of our WCR, down 35,2 M€ . Cash flows from operating activities decrease impacted by 62 M€ one-time events and tax related events . Impact from tax factoring : 20 M€ . Impact from tax reimbursement in FY11 : 13 M€ . Impact Canadian Subisdies factoring : 29 M€ . Excluding one time events, Cash flows from operating activities improved by 15.9 M€ 12 FY12 : Cash flows comparisons impacted by one-time events € million 2011-2012 2010-11 Cash flows from operations (27,0) 28,3 Year on year difference (55,3) Tax credit related to FY11 non current R&D charges (32,5) Excluding one time events, Cash flows from operations year on year difference is (22.8) M€ € million 2011-2012 2010-11 Change in WCR 35,2 25,9 Year on year difference 9,3 Impact of tax credit factoring (20,0) Impact of tax reimbursement in H1 FY11 (13,0) Impact of Canadian Subsidies Factoring initiated in FY11 (29.0) Impact of tax credit related to H1 FY11 non current R&D charges 32,5 Excluding one time events, WCR improvement is 38.8 M€ Excluding one time events and on a comparable basis, Cash flow from operating activities has improved by 15.9 M€ 13 Agenda FY12 performance FY13, a turning point Longer term 14 FY13 : A turning point Expectations Sales : 1 160 M€ – 1 200 M€, up +9% to +13% Gross margin : up 2 to 3 percentage points Current Operating Income : 70 M€ – 90 M€, up +25% to +61% Positive Operating Cash Flows Key drivers FY13 Investments in versatile teams and online Bigger focus on huge AAA titles, integration of social benefits and item model Lead / Associate studios organization Impact Significantly stronger offer for core gamers on HD consoles Re-enters the shooter genre Ongoing online/digital momentum 15 FY13 : Driven by core games and online/digital In million € Core Brands Casual Brands Total sales FY12 578 483 1 061 Material decrease FY13 Significant growth conservatively 1 160 – 1 200 budgeted Core & Casual In million € Online/Digital FY12 80 FY13 +80 / +100% growth 16 FY13 Core Games : Significantly stronger offer on HD consoles A significant progression opportunity lies in front of Ubisoft Ubisoft Core Games Sales HD consoles market software sales PS2 + Xbox + Xbox360 + PS3 Xbox360 + PS3 (sell-thru $ million) ($ million) 1 200 14 000 1 000 12 000 10 000 800 8 000 600 6 000 400 4 000 200 2 000 0 0 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 2012e Ubisoft delivers its strongest line-up for core gamers in FY13 with Assassin's Creed 3, FarCry 3 and Ghost Recon Future Soldier 17 Excludes Asia.