Ubisoft Entertainment : Download the Universal Registration Document 2022

Contents

Message from the Chairman	3
and Chief Executive Officer
1 KEY FIGURES	5
1.1	Quarterly and annual consolidated sales	6
1.2	Sales by platform (net bookings)	7
1.3	Sales by geographic region (net bookings)	8
2 GROUP PRESENTATION	9
2.1	Group business model and strategy	10
2.2	History	14
2.3	Highlights	15
2.4	Subsidiaries and equity investments	17

2.5 Research and development, investment

and financing policy

19

2.6 2021-2022 performance review (non-IFRS

data)	21
2.7 Outlook	24

3 RISKS AND INTERNAL CONTROL	25
3.1 Risk factors	26

3.2 Risk management and internal control

		mechanisms	37
4 CORPORATE GOVERNANCE REPORT	45
	4.1	Corporate governance	46
5	4.2	Compensation of corporate officers	91
CORPORATE SOCIAL RESPONSIBILITY	127

5.1	Methodology note on employee-related,
	environmental and societal reporting	128
5.2	Corporate social responsibility governance	132

5.3 Offering a customized gaming experience that enriches players' lives beyond pure

	entertainment	138
5.4	Acting as a responsible employer	142
5.5	Developing our local anchorage	151
5.6	Optimizing our environmental impact	157
5.7	Duty of care plan	169

5.8 Report of the independent third-party organization on the verification of consolidated

non-financial performance statement included
in the management report	175

6 FINANCIAL STATEMENTS

179

6.1 Consolidated financial statements for the year

ended March 31, 2022

180

6.2 Statutory auditors' report on the consolidated

financial statements

236

6.3 Separate financial statements of Ubisoft Entertainment SA for the year ended

March 31, 2022

242

6.4 Statutory auditors' report on the separate

financial statements

270

6.5 Statutory auditors' special report

on regulated agreements and commitments	275
6.6 Ubisoft Entertainment SA results
for the past five financial years	276

INFORMATION ON THE COMPANY	277
7 AND ITS CAPITAL
7.1	Legal information	278
7.2	Share capital	282
7.3	Share ownership	288
7.4	Securities market	292
7.5	Additional information	297

8 2022 GENERAL MEETING	299
8.1 2022 General Meeting agenda	300
8.2 Presentation and text of draft resolutions	301
CROSS-REFERENCE TABLES, SASB	325
9 REPORTING AND EU TAXONOMY
Cross-reference table of the Universal Registration
Document	326
Annual financial report cross-reference table	328
Management report cross-reference table	329
Statement of non-financial performance (DPEF)
cross-reference table	330
Corporate governance report cross-reference table	332
Cross-reference table for the AMF tables
on corporate officer compensation	333
SASB reporting	334
SDG dashboard	337
Table of risks	341
Application of the EU taxonomy to Ubisoft
Entertainment SA's business activities	345

In the table of contents, the components of the annual financial report are identified by the pictogram

In the table of contents, the components

of the Statement of non-financial performance are identified by the pictogram

The Universal Registration Document was filed on June 14, 2022 with the Autorité des Marchés Financiers (AMF - the French Financial Markets Authority), the competent authority in this respect under Regulation (EU) 2017/1129, without any prior approval requirement, as set out in article 9 of said regulation.

The Universal Registration Document may be used for the purpose of a public offering of securities or their admission to trading on a regulated market if it is supplemented with a securities note and, where applicable, a summary and all amendments made to the Universal Registration Document. This set of documents is then approved by the AMF in accordance with Regulation (EU) 2017/1129.

The Universal Registration Document is a copy of the french official version of the Universal Registration Document established in xHTML format and available on the issuer's website.

UBISOFT - UNIVERSAL REGISTRATION DOCUMENT - 2021-22

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• UBISOFT - UNIVERSAL REGISTRATION DOCUMENT - 2021-22

MESSAGE FROM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER

Yves Guillemot

Over the past year, despite meaningful challenges we have progressed on key strategic priorities, including growing our major brands and proprietary technologies, building an increasingly recurring business, and implementing profound transformation of our organization. As an organization, we have demonstrated that we can rely on dependable brands, production and technology assets which are stronger than ever at a time when the value of assets has never been so high.

Our full-year performance was built on many brands and content, across new releases and back-catalog, as well as our capacity to increasingly leverage the competition among platforms through high-value partnerships. Our three biggest brands, Assassin's Creed, Far Cry and Rainbow Six, each delivered well over 300 M€ of net bookings, a first in Ubisoft's history, reflecting Assassin's Creed Valhalla's stellar performance, Far Cry's best year ever and the expansion of the Rainbow Six universe. Back-catalog revenues were up 11% and represented more than 50% of total net bookings for the fourth consecutive year.

If we look back at the past two years, they have arguably been quite intense for the world, for our industry and for Ubisoft. We have seen a meaningful increase in competition, with growing player expectations and an abundance of high-quality content. Simultaneously, the Covid crisis has led to major production challenges across the industry that have caused more than 30 premium titles being delayed in calendar year 2021 alone and, while clear productivity improvements are being made, every month continues to see major content postponed. These production challenges have been exacerbated over the past 12 months by The Great Reshuffle trend that has been impacting all industries across the world.

Despite all this, we have delivered the biggest line-up of quality content in the industry. At the same time, we have been thoroughly transforming our organization in order to successfully seize the many great opportunities our fast- evolving industry has to offer and continue to deliver outstanding experiences to players. We appointed new leaders across the company, expanded our Executive Committee, and continued building best-in-class governance. We have also evolved our decision-making process for managing our productions' capital allocation, with a close collaboration between the Brand Portfolio Management, Editorial, Production Project Management and the Studio Operations teams. This new framework is destined to:

• define each brand's DNA and market opportunities;
• create long-lasting meaningful experiences that will fulfil players rising expectations for self-expression and social experiences;
• elaborate a new global set of KPIs and processes to deliver even more predictability in Ubisoft's productions.

1. Subject to shareholder approval on the appointment of Claude France

In parallel, one year ago we created the role of VP Production Technology. This was designed to ensure alignment of our technologies across Ubisoft, and maximize the focus on both our biggest existing opportunities and the most promising technological breakthroughs. As part of this process, we took the decision to focus our engine efforts on the development of our industry-leading Anvil and Snowdrop proprietary tools as well as on the development of our cloud-native technology, Scalar. We have also continued to invest in other promising technologies, including enhanced AI and Web3.

Reflecting our reputation as a great place to work, we welcomed back last year more than 600 talents who had previously worked at Ubisoft. We also made significant additions to our teams, from industry leading producers and creators to highly recognized experts in artificial intelligence and programming. Women now represent 25% of our total workforce, and represented one third of total recruitment in the past 12 months. Furthermore, we have a strong representation of women at leadership levels with respectively 42% and 45% for the Executive Committee and the Board (1). We have ambitious plans to continue building a more diverse and inclusive organization. And while attrition has been a challenge over the past 12 months, the actions we have implemented on talent retention are starting to pay-off.

We are now entering a new multi-year phase of significant topline growth, driven by the meaningful expansion of our talent force over the past five years to:

• grow our biggest franchises thanks to ambitious roadmaps to bring them to new heights with notably four promising mobile games under development;
• expand meaningfully our portfolio;
• and continue building an increasingly recurring business.

We have been working on the biggest pipeline in Ubisoft's history through a mix of highly ambitious premium games, multiplatform Free-to-Play experiences to reach significantly wider audiences, new internally developed brands as well as titles based on massive entertainment brands licenses.

The future of our industry looks brighter than ever, with an ever-expanding total addressable market, falling platform, business model and geographical barriers, as well as exciting new technological breakthroughs. We have the talents, the industrial, and the financial scale, and a large portfolio of powerful IPs to create massive value in the coming years and even more benefits to our communities.

I heartily thank our talented teams for their resilience and engagement, and also players, partners and shareholders for your loyalty, support and confidence in us.

UBISOFT - UNIVERSAL REGISTRATION DOCUMENT - 2021-22

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