Ubisoft : conference call

Jean, tu es là ?

Conference call started

Very good year start
Watch Dogs best launch ever, second best in America.
In house produced, fully owned by Ubisoft.

AC + Watch Dogs in house developed = better for shareholders

AC mixed, bad launch, but Ubisoft has provided patches.
Reviewer comments are now much better (after patch 4).

Next year new AC-title with the same game engine as ACU !

Far Cry 4 exceeded our expectations.

The Crew : comments were a bit underwhelming at first, reception was positive

Back Catalogue 182 mio euros
Digital sales : significant improvement

Mobile revenu 1st 9 months : x 4 !

Mobile revenue 1st 9 months : x 4 !

Connection lost….

Ubisoft has potential to produce NEW franchises, fully in house developed

Ubisoft wants a bigger share of the market next year

Ac Movie
Released dec 21st 2016

Rabbids invasion season 2 will be launched in US

Nickelodeon agreed for third season

Question round :
Natixis first

Natixis not happy with guidance T4/ full year 2014/2015
🙂

Is 1.440 M a target or is it « AT LEAST » 1.440 M ?

Ubisoft : 1.440 is not a minimum but is conservative, we feel comfortable with this.

US dollar impact is still limited because it is an average rate of the first nine months, not the exchange rate now. But effect is positive.

There are also local costs in USD !
Therefore, Ubisoft has 50% upside on the dollar.
Most important COST currency = CANADIAN dollar, not USD !

Benchmark company now asking questions

Loooooooooooooooooooooooooooooong question…

Ubisoft : There is a good window of opportunity for launching new titles with the new console cycle, but it also has risks.

Each time with transition to new console cycle, you have to make completely 100% new engines = difficult & costly.
ACU : was not perfect, but engine is now good, we can use it now for more games.

Berenberg : Ebit guidance is a bit lower due to higher depreciation.
Ubi : accounting policy as such has not changed. Depreciation depends on number of games already sold and number of games still expected to sell.
But we depreciate a bit faster because the game cycle is faster.

(Ubisoft speeding up depreciation, which wheighs on results this year (but not next year))

Free Cash Flow prediction by Ubisoft is quite high (€ 150 M)

Exane : 1) Division ACU / ACR (which percentage was ACU and which ACR)
2) Currencies
3) Game release schedule next year ?

Ubisoft : 1) We do not disclose this info
2) USD and CAD was favorable
3) DETAIL ON PIPELINE IN MAY !!!

BRYAN GARNIER :
1) Are there FIVE triple AAA games this year ?
2) Debt position ?
3) Growth ?

Ubisoft :
1) The Division, AC, Rainbow six, rest is for may (no confirmation)
2) 12 mio net debt at the start of the year, +150 mio net cash end this accounting year.
3) More growth due to more PC, more digital, console cycle is positive

Ubisoft : Competition between PS4 & Xbox is positive, lots of publicity, lower prices. Volume will increase, good for game developers.
We’re optimistic on growth.

Sales in emerging markets becoming more and more important.

No more questions ?
Conference call ends….

C’était en anglais, je suis désolé.
Tout le monde a compris (plus au moins) ?

Je vais faire un petit résumé

De rien !