June 28, 2011 - Ubisoft - Ubisoft - Company / Overview

ANNUAL REPORT

11 11

A statement from Yves Guillemot

In 2010-2011, Ubisoft won over new market share in all territories and strengthened its position as 3rd independent publisher. Our sales were carried by the success of our dance titles and the performance of Assassin’s Creed Brotherhood. Ubisoft also confirmed its position as a key partner among console makers, establishing itself as 1st independent publisher on Kinect™, Wii™ and the 3DS™. Ubisoft has also continued to reorganize its studios, and abandoned some projects in order to concentrate on titles with stronger market potential, which translated into a net loss of € 52 million. Nevertheless, we have managed to reinforce our financial position with annual sales up 19.3% to € 1,039 million, a net operating income* of € 29 million and a positive cash flow of € 99.2 million.

On the high-definition market, Assassin’s Creed Brotherhood last year proved that we are capable of releasing a very high quality franchise on a yearly basis, and establishing our brands in multiplayer. Our objective is to reproduce this success with other brands and reinforce ties with players. The year 2011-2012 will be marked by a line-up particularly rich in key franchises, and which reaches a wider audience.

Combined with investments made over the past few years, mainly in our key franchises and online, these results have put Ubisoft in a position of profitable growth for the coming years. For this reason, we will continue to pursue our strategy based on three key pillars: high-definition titles, casual games and online games.

It includes, among others, Assassin’s Creed Revelations, Driver San Francisco, Ghost Recon Future Soldier, Rayman Origins, the adaptation of the Tintin film as well as Child of Eden and Raving Rabbids on Kinect™. Almost all of these games will offer robust multiplayer modes. Uplay will also offer our consumers additional online services and content, as well as the possibility to pursue their gaming experience wherever they may be. Our high-definition titles will gradually become a strong source of recurring digital revenue.

*excl. share-based payments

Casual continues to be a high-potential market, and we proved this once again last year with the success of Just Dance and Michael Jackson The Experience. Our objective is to strengthen our leadership position on the Wii™ and also on the Kinect™ and Move platforms. We also aim to offer even more accessible experiences on new consoles such as 3DS™, and with innovative titles like Rocksmith. Above all, we’re continuing to study new technologies and our consumers’ needs in order to anticipate trends which will shape the casual market of tomorrow. Finally, we will continue to grow our online segment. We will capitalize on the experience we accumulated last year and look to our key franchises to launch several hardcore and casual titles. We will thus continue to develop Settlers Online and CSI Crime City and will launch more new free-to-play titles, in particular Ghost Recon Online for gamers, and Imagine for young girls. We will also be launching a new opus of Trackmania, the leading online car-racing game.

Ubisoft celebrates its 25th anniversary this year, marking 25 years of passion, innovation and challenges. And this is just the beginning! Recent revolutions such as the growing importance of social components and “Game as a Service” make our job even more exciting. They give us the possibility to get even closer to our consumers, and provide them with even stronger gaming experiences. The energy of Ubisoft’s teams and their desire to win make me confident of our future success. I’d like to thank teams for their commitment, and also thank our shareholders, partners and clients for the trust they’ve shown us over the past 25 years.



  

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