2010-11 Earnings Presentation

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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

30, 2010 with the French Financial Markets Authority (l’Autorité des marchés financiers)).

FY11 performance

Long term Strategy : 3 strategic pillars

FY12 line-up and guidance

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FY11 sales and operating achievements

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Sales : 1 039 M€ ─ up 19%

Assassin's Creed Brotherhood : > 7 million units sold-in

Casual back on track : 435 M€

Dance sales : > 300 M€

Just Dance franchise : > 10 million units sold-in

Michael Jackson The Experience : > 3 million units sold-in

3DS, Kinect & Move casual sales : > 80 M€

Third party leader on Kinect & 3DS

Online and digital revenues : 38 M€

Better at managing communities, providing services, monetizing

FY11

Current operating income up : 29.4 M€

Casual and Assassin's Creed Brotherhood very profitable

Profitability impacted by other High-End titles and investment phase on online

Improved net cash situation : 99 M€

Significantly improved operating cash-flows + one-time events

Inventories and receivables at record low levels

Year-End Capitalized R&D at 350 M€ vs 425 M€ in FY10.

Year-end capitalized R&D = 320M€ with future commitments excluded.

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FY11 financial progresses

Ubisoft ends FY11 in a stronger financial and operating position

6* Before stock-based compensation

Guidance Actual

€ million €m €m

Sales 1 020 1 039

Gross profit 653 (64%) 674 (65%) Solid sell-thru = higher ASPs

R&D expenses (340) / (350) (364) Anticipated depreciation on a FY12 title

SG&A expenses (285) / (295) (281) Good control of expenses

Current operating income* 20 29

Financial performance : main moves vs guidance

Cash R&D (400 M€)

vs R&D charges (449 M€)

+ 20 -49Lower cash spending and higher amortization charges

result in lower capitalized R&D at year end

Non Recurring Charge (62) (96)23M€ charges on games amortization

including a FY12 title + 11M€ on others

Operating cash flow > 0 + 65

Includes 31 M€ of one time event in H2

But excludes the H1 22M€ sales of tax carry back

receivables

Cash R&D (420) / (430) (400) Prudent assumptions on cash in February

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P&L : Profitability

Gross margin up 161 M€

Impact Sales : 99 M€, impact improved margin 62 M€ (product mix, back catalog and on line)

1 percentage points higher than expected : better ASPs due to better sell-throughs.

R&D up 54 M€ : heavier high definition depreciation, greater royalties on licenses plus anticipated amortization of

FY12 title.

SG&A : variable marketing expenses at 160 M€ or 15.4% of sales (144 M€ and 16.5% in FY10)

G&A : fixed structure costs at 120 M€ or 11.5% of sales (119 M€ and 13.7% in FY10)

2010-11 2009-10

€ million €m % €m %

Sales 1 038,8 871,0

Cost of sales ( 365,2) 35,2 ( 358,1) 41,1

Gross profit 673,6 64,8 512,8 58,9

R&D expenses ( 363,5) 35,0 ( 309,4) 35,5

Selling expenses ( 212,9) 20,5 ( 196,1) 22,5

G & A expenses ( 67,9) 6,5 ( 66,9) 7,7

SG & A expenses ( 280,7) 27,0 ( 263,0) 30,2

Current operating income * 29,4 2,8 ( 59,6) -6,8

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P&L : Review of R&D expenses and investments

Increase in current R&D expenses : Accelerated depreciation on underperforming HD titles + anticipated

depreciation on a FY12 title + Royalties on dance outperformance + increased focus on online + dollar impact .

One time non current charge of 85 M€ related to games cancelled or amortized following production reorg.

Increase of total cash investment : + 47 M€ mostly linked to royalties (+29M€) and online (+10M€) expensed directly

in the P&L

Capitalized R&D : stands at year end at 350 M€ vs 422 M€ last year. Excluding future commitments = 320 M€.

€ million 2010-11 2009-10

Depreciation of in-house games 240,9 201,0

Depreciation of external games and licences 61,2 86,4

Royalties 45,1 16,3

Others 16,4 5,8

Total Current R&D depreciation and royalties 363,5 309,4

Total Non Current R&D 85,4

Total R&D depreciation and royalties 448,9 309,4

Capitalized software-related production 287,5 260,8

Investment in external production and licenses51,5 70,7

(excluding future commitments)

Royalties 45,1 16,3

Others 16,4 5,8

Total development investment 400,4 353,5

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P&L

Non recurring charges : 85 M€ R&D related, 12 M€ others including termination of Newstand

figurines business in Spain and Italy

Financial expenses :

Interest charge: (5.0) M€ (including (3.6) M€ sell-off on tax credit sales)

Gains on Gameloft shares sales : 5.7 M€

Foreign exchange : (4,3) M€ (5.2 M€ gain in FY10)

Tax rate 44% excluding stock base compensation : benefit of R&D tax credit

€ million 2010-11 2009-10

Current operating income* 29,4 ( 59,6)

Fair Value Variation ( 1,4) ( 0,4)

Stock-based compensation ( 12,6) ( 12,1)

Other revenues (expenses) ( 97,4) ( 0,1)

Operating income/(loss) ( 80,5) ( 72,1)

Net financial income/(expense) ( 3,7) 4,8

Share of profit of associates 0,0 0,1

Net income tax 32,1 23,6

Net income ( 52,1) ( 43,7)

Diluted earnings/(loss) per share (€) ( 0,54) ( 0,45)

Nbr of shares fully diluted 96 961 96 532

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P&L : Net income before non recurring elements and stock-based compensation

€ million 2010-11 2009-10

Net income ( 52,1) ( 43,7)

Gameloft ( 3,9) 0,0

Goodwill Amortization 1,4

Non recurring charges (restructuration) 63,5 0,0

Stock-based compensation 12,6 12,1

Net income before non recurring elements and stock

based compensation21,4 ( 31,6)

Diluted EPS before non recurring elements and stock

based compensation0,22 ( 0,33)

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Cash flow statement

152 M€ improvement on net free cash flow :

91 M€ cash flow from operations improvement

63 M€ WCR improvement :

Inventories (35.2 M€) and Account receivables (49.2 M€) at record low levels

11 M€ from Gameloft sales and 31 M€ sales of Canadian tax credits

3 M€ increase in Capex

22 M€ positive impact of one time sales of French Tax credit carryback

€ million 2010-11 2009-10

Opening cash position 41,3 154,2

Cash flows from operations 34,2 ( 56,7)

Change in WCR 30,4 ( 33,2)

Cash flows from operating activities 64,6 ( 89,9)

Net investment in capital assets ( 22,0) ( 19,1)

Net free cash flow 42,6 ( 109,0)

Net acquisitions/disposals ( 4,7) ( 9,0)

Proceeds from issue of capital and other financial flows 1,5 4,7

Tax credit sales 21,9

Effect of exchange rate fluctuations ( 3,4) 0,5

Decrease/(increase) in net debt 57,9 ( 112,8)

Closing cash position 99,2 41,3

Agenda

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FY11 performance

Long term Strategy : 3 strategic pillars

FY12 line-up and guidance

Figures are Creation to Date

31 million U.22 million U. 23 million U.18 million U.

7 million U.7 million U. 17 million U.8 million U. 15 million U.5 million U.

29 million U.

20 million U. 23 million U.

14 million U.

Creator of content and services for the entertainment industry

Ubisoft, a unique creator of content for casual players and passionate gamers

Online brings a direct relationship with players. A major growing commitment to

increase the value of our casual and gamers franchises.

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2 million U.

10

60

110

160

210

260

310

360

410

2007 2008 2009 2010 2011

Casual : A great market

Keys to success

Billion of players

Early positioning, new interfaces

Size opportunities, innovate

Try at a limited cost with fast return

New opportunitiesKinect, 3DS, "Wii 2", Rocksmith, additional digital

content and services…

A recurring and profitable

business

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Ubisoft casual sales

(in million €)

High-definition : a growing market

A growing market

Xbox 360 5th year : software up 15% in 2010

PS3 4th year : software +28% in 2010

New growth expected for 2011

Release of "Wii 2" in 2012

A challenging marketNextgen enters its 6th year

Highly competitive and concentrated

Solutions :

The Assassin's Creed path

Commit even more resources on top titles

Efficient network of lead and associate studios

Reach back blockbusters' profitable status

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Digital revenue opportunities

Players more and more connected and interact socially

Increased integration of digital services and content

Growing incremental revenues

Uplay strategy

Online : Engage players with Uplay

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Direct contact to 13 million registered users

Uplay users play more, are more committed to our games : stronger brand loyalty

UbisoftContent Console manufacturers

& RetailersPlayer

Ubisoft

Additional Content

Player

Services

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Uplay Facebook

Uplay iPhoneUplay PC

Uplay.com

Uplay Console

GET MORE FROM YOUR GAMES

Uplay rewards customers for playing our games

Gamers connect to our brands everywhere and on whatever platforms

Grows our franchises revenue potential

Online : Gaming everywhere with Uplay

Online : a major commitment to the Free-to-Play market

A large and growing market2010 : $6 billion market (including Asia, excluding Facebook)

2014 : estimated $11 billion market

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Good progressFirst Free to Play titles in FY11

Heroes Kingdom and Settlers Online

Strengthen commitment in FY12 Ambitious projects for our gamer and casual audiences

Strong commitment and investments in Ubisoft's 3 strategic pillars

High Definition − Casual − Digital : future growth potential

Long term investments in people, products and infrastructure

Improved profitability expected in the future

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Agenda

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FY11 performance

Long term Strategy : 3 strategic pillars

FY12 line-up and guidance

High-Definition : A favorable comparison to FY11

FY12 FY11

Assassin's Creed (fiscal Q3) Assassin's Creed

Ghost Recon (fiscal Q4) Splinter Cell

Driver (Fiscal Q2) Prince of Persia

Rayman Origins (fiscal Q3) Ruse

Call of Juarez (fiscal Q2) Shaun White

Raving Rabbids (fiscal Q3) Hawx 2

Tintin (fiscal Q3) Raving Rabbids

Others + Back-Catalog Others + Back-Catalog

Slight growth expected 565 M€

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Casual : Capitalize on 5 years of successful experience

Slight decrease expected (435 M€ in FY11)

FY12

Consolidate Dance revenues :

New iterations of successful franchises

Release them also on Kinect & Move

Capitalize on Kinect, Move, 3DS

Release new experiences : Rocksmith…

Online : continue to build our expertise and future potential

FY12

Free to Play :

Settlers Online

Heroes Kingdom

Imagine Town

….

Trackmania 2 – ManiaPlanet

Xbla/PSN :

Clash of Heroes / Outland / Dust …

Strong growth expected (38 M€ in FY11)

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FY12 guidance

FY12

Sales : 1 040 M€ to 1 080 M€

Gross Margin : up 1 to 2 percentage points

Better Back-Catalog margins and increased online revenues

Current operating income : 40 M€ to 60 M€

Significantly stronger line-up expected for FY13

Sales and current income growth expected for FY13

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