Fourth Quarter Sales Up 37.4 Percent to €197 Million ($252.16 million U.S.)
> Outstripping Targets
>
> Full Year Sales Up 24.4 Percent to €680 Million ($870.4 million U.S.)
>
> Forecasts Revised Upwards for 2006/2007 Current Operating Income and Net Cash
> Position, as Well as for 2007/2008 Sales
>
> PARIS, April 26, 2007 – Today, Ubisoft, one of the world's largest video game
> publishers, reported its sales for the fourth fiscal quarter ended March 31,
> 2007.
>
> Sales
>
> Sales for the fourth quarter of 2006-07 came to €197 million ($252.16 million
> U.S.) up 37.4 percent, or 41.7 percent at constant exchange rates, compared
> with the €144 million ($184.32 million U.S.) recorded for the same period of
> 2005-06. Full-year sales for fiscal 2006-07 totaled €680 ($870.4 million
> U.S.) versus €547 million ($700.16 million U.S.) for fiscal 2005-06,
> representing an increase of 24.4 percent, or 27.2 percent at constant
> exchange rates.
> Fourth-quarter sales beat the €152 million ($194.56 million U.S.) minimum
> target Ubisoft projected in its third-quarter sales figures announcement by
> €45 million ($57.6 million U.S.). This superior performance was fueled by the
> following factors:
>
> Robust performances of two key games launched during the quarter :
> -Tom Clancy's Ghost Recon Advanced Warfighter® 2 got off to an excellent
> start with 1 million units sold on the Xbox 360(TM) video game and
> entertainment system from Microsoft. Launched just one year after the first
> game, this success highlights the proven strength of the Tom Clancy's Ghost
> Recon® franchise.
> -Teenage Mutant Ninja Turtles® (TMNT(TM)) also turned in a good showing with
> more than 1.1 million units sold for its launch on eight platforms.
>
> Continued success of games launched in previous quarters, including:
> -Tom Clancy's Rainbow Six® Vegas (1.7 million units sold since the game was
> launched).
> -Wii games, particularly Rayman® and Red Steel(TM) which have sold more than
> 830,000 and 950,000 units respectively since their launch.
> -The Petz® series of games, which collectively sold 3.5 million units during
> the fiscal year.
>
> During the first three months of the calendar year, Ubisoft continued to grow
> faster than the sector and gained new market share:
> -Second independent publisher in Europe, with growth of 31 percent (compared
> with market growth of 15 percent) and market share of 8.6 percent versus 7.6
> percent in the first quarter of 2006. Ubisoft was ranked as the number one
> independent publisher on Wii(TM), the Nintendo DS(TM) and the Xbox 360(TM).
> -Third independent publisher in the United States, with growth of 41 percent
> (compared with market growth of 28 percent) and market share of 6.7 percent
> versus 6.1 percent in the first quarter of 2006. Ubisoft was ranked as the
> number one independent publisher on Wii(TM) and number two on the Nintendo
> DS(TM) and Xbox 360(TM).
>
> Full-year 2006-07 Forecasts for Current Operating Income and Net Cash
> Position
>
> Due to its strong sales performance, Ubisoft has revised its target for
> full-year current operating income to approximately 5.5 percent of sales,
> higher than the previous guidance of approximately 4 percent of sales. In
> addition, the Company expects to achieve a positive net cash position of
> approximately €50 million ($64 million U.S.) sharply up on the former
> objective of zero net debt.
>
> Yves Guillemot, chief executive officer of Ubisoft, stated: "Our fourth
> quarter performance was an excellent way to round off 2006-07, a year in
> which we exceeded all of our targets. We have not only confirmed the strong
> position of our key franchises Splinter Cell, Ghost Recon, Rayman, and
> Rainbow Six but have also launched new brands in the form of Red Steel and
> Heroes of Might & Magic. Our investment in games for the Xbox360, Wii and
> Nintendo DS systems has paid off and we have successfully broken into the
> casual games segment with the Petz series of games (Catz, Dogz and Horsez).
> Finally, above and beyond the recognized quality of our internal development
> studios, this year has confirmed the increasingly important role of our
> Publishing and Third Party Development divisions.”
>
> Outlook for 2007-08
> Outlook for Full-Year 2007-08
>
> Ubisoft has raised its 2007-08 sales target to approximately €800 million
> ($1.024 billion U.S.) – compared with the previous forecast of between €750
> million ($960 million U.S.) and €766 million ($980.48 million U.S.) – in
> order to reflect the quality of its games line-up and the favorable outlook
> for the sector. Ubisoft is maintaining its previously-announced objective for
> current operating income before stock options to represent at least eight
> percent of sales.
>
> Based on the provisional games release schedule, the first half of 2007-08 is
> expected to account for a larger portion of full-year sales than in the past.
>
>
> Consequently, Ubisoft expects First-Quarter 2007-08 sales to be up 71 percent
> to approximately €120 million ($153.6 million U.S.) driven by:
>
> -The video game based on Sony Pictures Animation's feature-length CG animated
> film Surf's Up(TM).
> -Four new games for Wii(TM) and four for the Nintendo DS(TM).
> -Tom Clancy's Rainbow Six® Vegas on the PLAYSTATION®3 computer entertainment
> system.
>
> Yves Guillemot concluded: "In 2007-08, Ubisoft will have the best line-up in
> its history with the launch of seven franchises including Brothers In Arms
> and Splinter Cell; six new brands, including Assassin's Creed, EndWar and
> Haze; and four licensed games, including Surf's Up, Lost and Naruto. We
> intend to reap the full benefits of the ramp-up of new generation consoles
> and grow, again this year, our presence in the casual market on Wii and
> Nintendo DS systems. Ubisoft should continue to win market share and
> significantly boost its profitability in 2007-08.”
>
> Significant Events of the Quarter
>
> Market share: During the first three months of the year, Ubisoft has been
> ranked 3rd independent publisher in the US with 6.7 percent market share
> (compared to 4th with 6.1 percent the previous year), 2nd in France with 8.5
> percent market share (compared to 2nd and 8.2 percent), 2nd in the UK with
> 10.3 percent market share (compared to 2nd and 8.6 percent) and 3rd in
> Germany with 7 percent market share (compared to 3rd and 6.1 percent).
>
> Acquisition of Anno® (April 11, 2007): With five million units sold to date,
> Anno® is one of the most successful strategy games and a best-seller on the
> German market. This acquisition will strengthen Ubisoft's leading position in
> the strategy segment, Germany's most important segment and consolidate its
> number 2 position in this country.
>
> New expansion plan in Quebec: Objective of creating 1,000 additional jobs by
> 2013 and opening a studio specialized in the creation of digital cinema
> content.
>
> Conversion of 2008 warrants (BSAR): Ubisoft increased its capital by €50
> million ($64 million U.S.) following the conversion into shares of 92 percent
> of its 2008 warrants.
>
> New awards: Ubisoft was honored at the 10th Annual Academy of Interactive
> Arts & Sciences Achievement Awards, winning the award for First-Person
> Shooter of the Year for Tom Clancy's Rainbow Six® Vegas.
>
> Quarterly sales
>
> Sales
>
> (in € millions)
> 2006-07
> 2005-06
> 2006-07 vs 2005-06
> % change at constant exchange rates
>
> First quarter
> 70
> 43
> +62%
> +64%
>
> Second quarter
> 102
> 110
> -7%
> -4%
>
> Third quarter
> 311
> 250
> +24%
> +27%
>
> Fourth quarter
> 197
> 144
> +37%
> +42%
>
> Full year
> 680
> 547
> +24%
> +27%
>
> 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 September 20, 2006 with the
> French Financial Markets Authority (l'Autorité des marchés financiers).
>
> Financial calendar
>
> Release
> Date
>
> 2006-07 annual results
> May 29, 2007
>
>
> N.B. This date is subject to change and will be confirmed at a later stage.
>
> About Ubisoft
>
> Ubisoft is a leading producer, publisher and distributor of interactive
> entertainment products worldwide and has grown considerably through a strong
> and diversified line-up of products and partnerships. Ubisoft has offices in
> 21 countries and sales in more than 50 countries around the globe. It is
> committed to delivering high-quality, cutting-edge video game titles to
> consumers. Ubisoft generated sales of 680 million Euros for the 2006-07
> fiscal year. To learn more, please visit www.ubisoftgroup.com.
>
> APPENDICES
> Breakdown of sales by geographic region
> % sales
> % sales
> % sales
> % sales
>
>
> Q4 2006-07
> Q4 2005-06
> 12 months 2006-07
> 12 months 2005-06
>
> Europe
> 53%
> 43%
> 49%
> 49%
>
> North America
> 41%
> 52%
> 45%
> 45%
>
> Rest of world
> 6%
> 5%
> 6%
> 6%
>
> TOTAL
> 100%
> 100%
> 100%
> 100%
>
> Breakdown of sales by platform
> Q4 2006-07
> Q4 2005-06
> 12 months 2006-07
> 12 months 2005-06
>
> Nintendo DS(TM)
> 20%
> 1%
> 11%
> 6%
>
> Game Boy Advance
> 3%
> 5%
> 5%
> 7%
>
> Nintendo GameCube(TM)
> 1%
> 0%
> 1%
> 3%
>
> PC/DVD-ROM
> 10%
> 15%
> 16%
> 16%
>
> PlayStation®2
> 15%
> 12%
> 16%
> 27%
>
> PlaySTation®3
> 5%
> -
> 2%
> -
>
> PSP(TM)
> 4%
> 14%
> 5%
> 9%
>
> Wii(TM)
> 14%
> -
> 14%
> -
>
> XBOX®
> 0%
> 7%
> 1%
> 17%
>
> XBOX 360(TM)
> 28%
> 47%
> 28%
> 15%
>
> Other
> 0%
> 1%
> 0%
> 1%
>
> TOTAL
> 100%
> 100%
> 100%
> 100%
>
> Breakdown of sales by business line
> Q4 2006-07
> Q4 2005-06
> 12 months 2006-07
> 12 months 2005-06
>
> Development
> 77%
> 83%
> 76%
> 85%
>
> Publishing
> 14%
> 14%
> 18%
> 10%
>
> Distribution
> 9%
> 3%
> 6%
> 4%
>
> TOTAL
> 100%
> 100%
> 100%
> 100%
>
> Games Release Schedule
>
> First Quarter 2007-08 (April – June 2007)
>
> BROTHERS IN ARMS® DS
> Nintendo DS(TM)
>
> CALL OF JUAREZ®
> Xbox 360(TM), PC (US)
>
> COSMIC FAMILY®
> Wii(TM)
>
> DOGZ® 2
> Game Boy Advance
>
> DRIVER® PARALLEL LINES
> Wii(TM), PC
>
> DRIVER® 76
> PSP(TM)
>
> ENCHANTED ARMS(TM)
> PlayStation®3 (US)
>
> TOM CLANCY'S GHOST RECON ADVANCED WARFIGHTER® 2
> PC
>
> GUITAR HITS®
> PSP(TM)
>
> HORSEZ®
> Game Boy Advance (US)
>
> The Elder Scrolls® IV : Oblivion(TM)
> PlayStation®3 (Europe)
>
> PRINCE OF PERSIA® RIVAL SWORDS
> Wii(TM), PSP(TM)
>
> TOM CLANCY'S RAINBOW SIX® VEGAS
> PlayStation®3, PSP(TM)
>
> RAYMAN RAVING RABBIDS(TM)
> Xbox 360(TM)
>
> resident evil 4(TM)
> PC (US)
>
> WarTech(TM) Senko no Ronde
> Xbox 360(TM)
>
> THE SETTLERS® 2 10TH ANNIVERSARY
> Nintendo DS(TM)
>
> PLATINIUM SUDOKU(TM) 2007
> Nintendo DS(TM) (Europe)
>
> SURF'S UP(TM)
> US only :
>
> PlayStation®3, PlayStation®2, Wii(TM), Xbox 360(TM), Nintendo DS(TM),
> PSP(TM), Nintendo GameCube(TM), Game Boy Advance, PC
>
> © 2006 Mirage Studios, Inc. Teenage Mutant Ninja Turtles(TM) is a trademark
> of Mirage Studios, Inc. All rights reserved. Game © 2006 Ubisoft
> Entertainment. All Rights Reserved.
>
> © 2007 Ubisoft Entertainment. All rights reserved. Published by Ubisoft
> Entertainment under license from Gearbox Software. Brothers In Arms is a
> trademark of Gearbox Software and is used under license. Gearbox Software and
> the Gearbox logo are registered trademarks of Gearbox Software, LLC.
> Developed by Gameloft.
>
> © 2006 Ubisoft Entertainment SA and Free Radical Design Limited. All Rights
> Reserved. Haze is a trademark of Ubisoft Entertainment and Free Radical
> Design. Free Radical Design and its associated logo are trademarks of Free
> Radical Design Limited. Developed by Free Radical Design Limited.
>
> © 2006 Techland. All Rights Reserved. Published and distributed by Ubisoft
> Entertainment under license from Techland. Call of Juarez is a trademark of
> Techland and is used under license.
>
> © 2007 Ubisoft Entertainment. All Rights Reserved. Anno, Petz, Guitar Hits,
> Cosmic Family, Driver, Red Steel, Splinter Cell, Heroes, Heroes of Might and
> Magic, Assassin's Creed, Rayman, Rayman Raving Rabbids, Ghost Recon, Ghost
> Recon Advanced Warfighter, Ubisoft, Ubi.com, and the Ubisoft logo are
> trademarks of Ubisoft Entertainment in the U.S. and/or other countries. The
> Settlers, Rainbow Six, Red Storm and Red Storm logo are trademarks of Red
> Storm Entertainment in the U.S. and/or other countries. Red Storm
> Entertainment, Inc. is a Ubisoft Entertainment company.
>
> © 2006 MTO, Inc. All Rights Reserved. Published and distributed by Ubisoft
> Entertainment under license from MTO. Dogzis a trademark of Ubisoft
> Entertainment in the U.S. and/or in other countries. Developed by MTO Inc.
>
> The Elder Scrolls IV: Oblivion® © 2007 Bethesda Softworks LLC, a ZeniMax
> Media company. The Elder Scrolls, Oblivion, Bethesda Game Studios, Bethesda
> Softworks, ZeniMax and related logos are registered trademarks or trademarks
> of ZeniMax Media Inc. in the U.S. and/or other countries. Published and
> distributed by Ubisoft Entertainment with Bethesda Softworks LLC. All Rights
> Reserved.
>
> © 2006 Ubisoft Entertainment. Based on Prince of Persia® created by Jordan
> Mechner. All Rights Reserved. Prince of Persia is a trademark of Jordan
> Mechner in the U.S. and/or other countries used under license by Ubisoft
> Entertainment.
>
> © 2005, 2006, 2007 G.rev Ltd. All Rights Reserved. Published and distributed
> by Ubisoft Entertainment under license from G.rev Ltd. Wartechis a trademark
> of Ubisoft Entertainment in the U.S. and/or other countries.
>
> © 2007 Gameloft. All Rights Reserved. Published by Ubisoft Entertainment.
> Platinum Sudoku is a trademark of Gameloft and is used under license.
>
> Surf's Up: TM & © 2007 Sony Pictures Animation Inc. All rights reserved. Game
> Software excluding Sony Elements: © 2007 Ubisoft Entertainment. All rights
> reserved.
>
> © 1990, 2006, 2007 SQUARE ENIX CO., LTD. All Rights Reserved. TITLE DESIGN:
> Yoshitaka Amano. CHARACTER DESIGN: Akihiko Yoshida. ILLUSTRATION © 1990, 2006
> Yoshitaka Amano. FINAL FANTASY, SQUARE ENIX and the SQUARE ENIX logo are
> registered trademarks of Square Enix Co., Ltd.
>
> Lost. Under license by © Touchstone Television. All Rights Reserved.
>
> Naruto. © 2002 MASASHI KISHIMOTO. This product is manufactured, distributed
> and sold under license from TV TOKYO Media, LLC. All Rights Reserved.
>
> ”PlayStation”, "PLAYSTATION” and the "PS” Family logo are registered
> trademarks of Sony Computer Entertainment Inc.
>
> Microsoft, Microsoft, Xbox, Xbox 360, Xbox LIVE, and the Xbox logos are
> trademarks of the Microsoft group of companies.
>
> Nintendo DS, and the Wii logo are trademarks of Nintendo. © 2006 Nintendo.
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