INVESTOR DAY - ubistatic19-a.akamaihd.net · February 18th2016. INVESTOR DAY. This statement may...
Transcript of INVESTOR DAY - ubistatic19-a.akamaihd.net · February 18th2016. INVESTOR DAY. This statement may...
February 18th 2016
I N V E S T O R D A Y
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 July 2, 2015 with the French Financial Markets Authority (l’Autorité des marchés financiers)).
D I S C L A I M E R
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AGENDA
YVES GUILLEMOT PRESIDENT & CEO
ALAIN MARTINEZ CHIEF FINANCIAL OFFICER
MEDIUM TERM PLAN
INTRODUCTORY REMARKS
DRIVING ENGAGEMENT WITH LIVE & CONTENT ACTIVITIES ANNE BLONDEL
VP LIVE OPERATIONS
HOW WE CAN REACH A WIDER AUDIENCE JOHN PARKES
MANAGING DIRECTOR FRANCE
I N T R O D U C T O R Y R E M A R K S
Yves Guillemot, PRESIDENT & CEO
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THE CREATION OF ORIGINAL IPS AT THE HEART OF OUR SUCCESS
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REVENUES: 2.2BN€, +60%
FY19 NON-IFRS OPERATING INCOME MARGIN: 20%
X~3 in absolute value
SIGNIFICANT TOPLINE & PROFIT GROWTH AHEAD
FREE CASH FLOW: ~300M€
BEFORE NOW HIT DRIVEN & CYCLICAL
FIRE & FORGET
LOW ENGAGEMENT
GAMES’ SHORT LIFE CYCLE
NO DIRECT RELATION TO GAMERS
LOW BARRIERS TO ENTRY
FRAGMENTED MARKET
MORE RECURRING & DEPENDABLE
YEAR ROUND & MULTI-YEAR SERVICE
HIGH ENGAGEMENT
GAMES’ LONG LIFE CYCLE
CONSTANT & DIRECT RELATION WITH PLAYERS
VERY HIGH BARRIERS TO ENTRY
FEW BIG COMPETITORS
A TRANSFORMING INDUSTRY: MORE DEPENDABLE
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BIGGER HITS & DIGITAL REVENUES
RECIPE FOR 30% PROFITABILITY?
A TRANSFORMING INDUSTRY: MORE RECURRING & PROFITABLE
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WE ARE EMBRACING THAT PATH
STRONG EXECUTION ON BUILDING
THE BEST STABLE OF FRANCHISES
THANKS TO SUPER EFFICIENT & PRODUCTIVE STUDIOS
BIGGER HITS = A WIDER AUDIENCE
MULTICENTRIC
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KEY DRIVER TO GREAT ENGAGEMENT 1. MORE STRONG MULTIPLAYER TITLES
DIGITAL REVENUES = GROWING ENGAGEMENT
MULTICENTRIC
FY17 NEW AAA IP
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KEY DRIVER TO GREAT ENGAGEMENT
2. YEAR ROUND, MULTI-YEAR LIVE CONTENT & SERVICES
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DIGITAL REVENUES = GROWING ENGAGEMENT
ATTRACT MILLIONS OF NEW PLAYERS
AT LOW COSTS PER ACQUISITION
RAISE THE AWARENESS OF OUR FRANCHISES
CONSUMER PRODUCTS
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TV SERIES MOVIES THEME PARKS
AN AGILE & LONG-TERM APPROACH
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XXX
ASSASSIN’S CREED
TOM CLANCY’S SPLINTER CELL TOM CLANCY’S GHOST RECON RABBIDS THE MOVIE
WATCH DOGS RABBIDS TV SHOW
SELECTING THE BEST PARTNERS TO MAXIMIZE OUR FRANCHISES’ POTENTIAL
AN UNBIASED APPROACH
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OUR CAPACITY
TO MANAGE UBISOFT
IN AN AGILE, LONG-TERM & UNBIASED WAY
TO GENERATE THE BEST RETURN
FOR OUR SHAREHOLDERS
WHAT IS AT STAKE?
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H O W W E C A N R E A C H A W I D E R A U D I E N C E
John Parkes, MANAGING DIRECTOR FRANCE
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REACHING A WIDER AUDIENCE
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30 YEARS EXPERIENCE TALENT & PASSION CONTINUOUS
INNOVATION
GREAT EXECUTION LONG-TERM APPROACH
REACHING A WIDER AUDIENCE
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1. CREATING NEW FRANCHISES IN NEW SEGMENTS
2. WIDENING RAINBOW SIX & GHOST RECON REACH
3. EXPANDING SUCCESSFUL FRANCHISES
4. BROADENING THROUGH WIDER ENTERTAINMENT
REACHING A WIDER AUDIENCE
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1. CREATING NEW FRANCHISES IN NEW SEGMENTS
2. WIDENING RAINBOW SIX & GHOST RECON REACH
3. EXPANDING SUCCESSFUL FRANCHISES
4. BROADENING THROUGH WIDER ENTERTAINMENT
REACHING A WIDER AUDIENCE
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Source: NPD, GFK Chart Track
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BIGGEST NEW IP LAUNCHES EVER
1
CREATING BLOCKBUSTER NEW IPS IS IN OUR DNA
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THE DIVISION: A MAJOR CREATION
R P G S H O OT E R O P E N WO R L D S I N G L E P L AY E R + S E A M L E S S M P / C O O P
225M VIDEO VIEWS
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66 AWARDS
We see The Division as the biggest release for us in the first half of the year, and quite possibly for the whole 12 months. If it’s updated regularly I don’t see why it won’t become one of our evergreen franchises (like GTA Online or Destiny.)
Every bit as engaging as I had hoped
Redefining what a typical RPG looks like
THE DIVISION: A MAJOR CREATION
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THE DIVISION: A MAJOR CREATION
STRONG DIGITAL LIVE SERVICES
A MEANINGFUL CONTRIBUTOR TO OUR LONG TERM
THE DIVISION: A MAJOR CREATION
HUGE REACH
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FOR HONOR: A GREAT LIVE SERVICES NEW CREATION
S O L O & M U LT I P L AY E R
H E AV Y P L AY E R E N G A G E M E N T
L O N G TA I L C O M P E T I T I V E
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1. CREATING NEW FRANCHISES IN NEW SEGMENTS
2. WIDENING RAINBOW SIX & GHOST RECON REACH
3. EXPANDING SUCCESSFUL FRANCHISES
4. BROADENING THROUGH WIDER ENTERTAINMENT
REACHING A WIDER AUDIENCE
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A PROVEN TRACK RECORD OF WIDENING THE AUDIENCE
FAR CRY 2 FAR CRY 3 FAR CRY 4
Far C
ry N
umbe
r Play
ers
# [PLAYERS ] X3 Fa
rCry
num
ber o
f Play
ers
S T R O N G M P R E P U TAT I O N
O N T R A C K F O R R E C O R D
F R A N C H I S E A U D I E N C E
BRINGING RAINBOW 6 TO A WIDER AUDIENCE
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# DAILY STREAMS POST LAUNCH
BRINGING RAINBOW 6 TO A WIDER AUDIENCE
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BRINGING RAINBOW 6 TO A WIDER AUDIENCE
BRINGING GHOST RECON TO A WIDER AUDIENCE
M I L I TA RY S H O OT E R
M A S S I V E O P E N WO R L D
4 P L AY E R C O - O P / S O L O
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1. CREATING NEW FRANCHISES IN NEW SEGMENTS
2. WIDENING RAINBOW SIX & GHOST RECON REACH
3. EXPANDING SUCCESSFUL FRANCHISES
4. BROADENING THROUGH WIDER ENTERTAINMENT
REACHING A WIDER AUDIENCE
THE BIGGEST SEGMENTS*
3 YEARS AGO NOW & TOMORROW
MULTIPLAYER CENTRIC
RAINBOW SIX FOR HONOR
GHOST RECON THE CREW
THE DIVISION…
OPEN WORLDS ASSASSIN’S CREED
FAR CRY
ASSASSIN’S CREED WATCH DOGS THE DIVISION GHOST RECON
THE CREW
ACTION ADVENTURE
ASSASSIN’S CREED
ASSASSIN’S CREED WATCH DOGS
RPG SOUTH PARK THE DIVISION
SHOOTER FAR CRY FAR CRY
GHOST RECON RAINBOW SIX
EXPANDING SUCCESSFUL FRANCHISES
*excludingSports 34
ACTIVE PLAYERS: 28M AC UNIQUE PLAYERS IN 2015 +7% VS 2014
VIDEOS: 738M VIDEO VIEWS WORLDWIDE ON THE BRAND (+ 5% VS 2014)
AC KEEPS ENTERTAINEMENT BLOCKBUSTER STATUS IN 2015
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CONTINUOUS INNOVATION
UNIVERSAL APPEAL
IMMEDIATE FUN
MEANINGFUL EXPERIENCES
YEAR-ROUND ENGAGEMENT
REACHING A WIDER AUDIENCE
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1. CREATING NEW FRANCHISES IN NEW SEGMENTS
2. WIDENING RAINBOW SIX & GHOST RECON REACH
3. EXPANDING SUCCESSFUL FRANCHISES
4. BROADENING THROUGH WIDER ENTERTAINMENT
REACHING A WIDER AUDIENCE
CONSUMER PRODUCTS
THEME PARKS
BROADENING THROUGH WIDER ENTERTAINMENT
ASSASSIN’S CREED TOM CLANCY’S SPLINTER CELL
TOM CLANCY’S GHOST RECON
RABBIDS THE MOVIE WATCH DOGS
RABBIDS TV SHOW
MOVIE & TV
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DEC 21, 2016
65M UNIQUE VIEWERS*
BROADENING THROUGH WIDER ENTERTAINMENT
* Have seen at least 1 episode
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1. CREATING NEW FRANCHISES IN NEW SEGMENTS
2. WIDENING RAINBOW SIX & GHOST RECON REACH
3. EXPANDING SUCCESSFUL FRANCHISES
4. BROADENING THROUGH WIDER ENTERTAINMENT
H O W W E C A N R E A C H A W I D E R A U D I E N C E
DRIVING ENGAGEMENT WITH LIVE CONTENT & ACTIVITIES
Anne Blondel-Jouin, VP LIVE OPERATIONS
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2. FOCUSING THE COMPANY ON LIVE!
3. WHAT WE HAVE ACHIEVED SO FAR
1. FROM A TRADITIONAL APPROACH TO A LIVE DIMENSION
4. IT’S ONLY THE BEGINNING
THE SUMM
ARY
DRIVING ENGAGEMENT WITH LIVE CONTENT & ACTIVITIES
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M O V I N G F R O M O N E T I T L E T O A N O T H E R
Hit 1 Hit 2 Hit 3 Hit 4
1. FROM A TRADITIONAL APPROACH …
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CORE GAME E X P A N S I O N S
…
E V E N T S Daily, Weekly, Monthly
C O N T I N U O U S I M P R O V E M E N T S
T O O L S for the community
U P D A T E S on the fly
L I V E
LONG-LASTING OUTSTANDING ENTERTAINMENT EXPERIENCES
FROM A TRADITIONAL APPROACH 1. …TO THE LIVE DIMENSION
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E
LIVE CONTENT ACTIVITIES ENGAGEMENT VALUE
VALUE
A
LC
DAU
Time spent
ARPU
ROI
1. THE VIRTUOUS CYCLE OF LIVE
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G A M E R & C O M M U N I T Y S AT I S F A C T I O N
1. FOCUSING THE COMPANY ON LIVE!
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ROAD TO
ENGAGEMENT
DEVELOPMENT
MARKETING
SALES
EDITORIAL
A L L T E A M S I N V O LV E D
2. ORGANIZATION
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ENGAGEMENT
DEVELOPMENT
MARKETING
SALES
EDITORIAL
ROAD TO
,COMMUNITY TEAMS
INFRASTRUCTURE & ONLINE SERVICES
ONE ORGANIC & AGILE LIVE TEAM
A L L T E A M S I N V O LV E D
2. ORGANIZATION
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POST LAUNCH LAUNCH PRE LAUNCH
COLLABORATING WITH DEVELOPMENT TEAMS TO INTEGRATE A LIVE DIMENSION INTO THE GAME DNA AND THE BRAND PILLARS
INCREASING ENGAGEMENT THROUGH LIVE EVENTS, ESPORTS ETC.
WEEKLY MONITORING OF KPIS TO PILOT AND ADJUST LIVE OPERATIONS, USING BEST PRACTICES FROM ALL OUR EXPERIENCES
E N S U R I N G G A M E R S ’ SATISFACTION WITH AN ROI-BASED MINDSET
A N D A D E D I C AT E D L I V E O P S T E A M
2. ORGANIZATION
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2016 2015 2014 NON LIVE AAA GAMES
L O N G E R TA I L
3. ACHIEVEMENTS
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2016 2015 2014 NON LIVE AAA GAMES
L O N G E R TA I L
3. ACHIEVEMENTS
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2016 2015 2014 NON LIVE AAA GAMES
L O N G E R TA I L
3. ACHIEVEMENTS
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CONTENT 4 SEASON DLCs
Y E A R - R O U N D
3. ACHIEVEMENTS
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Year 1 roadmap
Q1 2016 Q2 2016 Q3 2016 Q4 2016
SEASON ONE
OPERATION BLACK ICE
SEASON TWO
TO BE REVEALED
SEASON THREE
TO BE REVEALED
SEASON FOUR
TO BE REVEALED
+ FRIEND REFERRAL + COME BACK FOR MORE CONTENT Y E A R - R O U N D
3. ACHIEVEMENTS
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DAU AFTER 2 MONTHS
NON LIVE
3. ACHIEVEMENTS
*at scale 55
3. ACHIEVEMENTS
T H E D I V I S I O N C L O S E D B E TA
3. ACHIEVEMENTS
ENTERTAINING ALL TYPES OF GAMERS THANKS TO ESPORTS
3. REINFORCING GAMERS’ GLOBAL EXPERIENCE
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PRO PLAYER
CASUAL PLAYER
STREAMER / BROADCASTER
EVENT ORGANIZER
E N T E R TA I N I N G A L L T Y P E S O F G A M E R S
3. REINFORCING GAMERS’ GLOBAL EXPERIENCE
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$2 0 1 5 2 0 1 8
$2B MARKET
188M UNIQUE VIEWERS
Nov 1 5
35,610 BROADCASTERS
E N T E R TA I N I N G A L L T Y P E S O F G A M E R S
3. REINFORCING GAMERS’ GLOBAL EXPERIENCE
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18 M PLAYERS
2015WC SINCE 2003
950K TRACKS SHARED
150K LIVE STREAM SESSIONS
>1 M PEOPLE REACHED ONLINE
>100K LIVE SPECTATORS
E N T E R TA I N I N G A L L T Y P E S O F G A M E R S
3. REINFORCING GAMERS’ GLOBAL EXPERIENCE
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18 M PLAYERS
2015WC SINCE 2003
950K TRACKS SHARED
150K LIVE STREAM SESSIONS
>1 M PEOPLE REACHED ONLINE
>100K LIVE SPECTATORS
E N T E R TA I N I N G A L L T Y P E S O F G A M E R S
3. REINFORCING GAMERS’ GLOBAL EXPERIENCE
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ESPORT-AINEMENT
GRASSROOTS PRO TOURNAMENTS
$100k prize pool
E N T E R TA I N I N G A L L T Y P E S O F G A M E R S
3. REINFORCING GAMERS’ GLOBAL EXPERIENCE
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EXPERTISE PORTFOLIO COLLABORATION STRATEGY
T H I S I S J U S T T H E B E G I N N I N G
4. CONCLUSION
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M E D I U M T E R M P L A N
Alain Martinez, CFO
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SIGNIFICANT TOPLINE & PROFIT GROWTH AHEAD
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REVENUES: 2.2BN€, +60%
FY19 NON-IFRS OPERATING INCOME MARGIN: 20%
X~3 in absolute value
FREE CASH FLOW: ~300M€
5 AAAs BASED ON ESTABLISHED FRANCHISES
HOW MANY GAMES?
FY19 TOP LINE ASSUMPTIONS
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56
3734
2115 14 12
FY10 FY11 FY12 FY13 FY14 FY15 FY16
GREAT FOCUS DRIVING STRONG EXECUTION
TOTAL NUMBER OF GAMES
STRONG CONCENTRATION
*excluding F2P titles 68
BUILDING ON BLOCKBUSTER BRANDS
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40 MILLION UNITS
ARE UNIT ASSUMPTIONS AGRESSIVE?
FY19 TOP LINE ASSUMPTIONS
70
71
FY19 TOP LINE ASSUMPTIONS
NEW MARKETS
17% OF TOTAL REVENUES
IMPACT FROM RECURRING PLAYERS INVESTMENT?
FY19 TOP LINE ASSUMPTIONS
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73
RELE
ASES
LIVE = RECURRING REVENUES
LIVE
FY16 FY17 FY18 FY19
NEW AAA
4 to 5 BIG TITLES
5 BIG TITLES
FY19 TOP LINE ASSUMPTIONS
FY15 FY16 FY17 FY18 FY19
NEW AAA
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XXX
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74%
55% 70%
FY16
17%
Physical Digital Distribution Player recurring investment*
*Includes ingame items, DLCs/season pass, subscription & advertising
DIGITAL 30% OF TOTAL REVENUES
FY19 TOP LINE ASSUMPTIONS
FY19 DIGITAL 45%
OF TOTAL REVENUES
28%
9%
21%
YES, >80% GROSS MARGIN EXPANSION?
PROFITABILITY ASSUMPTIONS
YES OPERATING LEVERAGE?
75
YES
INVESTMENT GROWTH & NEW RECRUITMENTS?
RETURN TO SHAREHOLDERS & INVEST FOR THE FUTURE
CASH USE?
CASH FLOW ASSUMPTIONS
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XXX
We create our own Brands (IPs) internally
MAJOR BENEFITS BETTER LONG-TERM VISIBILITY ON PIPELINE
NO NEED FOR EXPENSIVE M&A OR EXTERNAL TEAMS
MEANINGFUL TEAMS FOR THE LONG-TERM BENEFIT OF OUR SHAREHOLDERS
A DIFFERENT POSITIONING, A DIFFERENT ORGANIZATION
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M&A ACTIVITY OF MAIN INDUSTRY PLAYERS OVER THE LAST 10 YEARS
CUMULATED M&A
> $13BN
CUMULATED M&A
$2.5BN
BIG M&A IS EXPENSIVE
78
0,0
0,5
1,0
1,5
2,0
2,5
3,0
FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
-
3,0
6,0
9,0
12,0
15,0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
CumulatedM&Aexpenditure
CumulatedM&Aexpenditure
n.a. n.a. n.a. n.a. n.a.
AcquisiDonofsubsidiaries(netofcashacquired)
Sources:Companyreports,pressreleasesNotes:(1)AcDvisionstandalonefigures(excludingVivendiGamesacquisiDons);(2)HighMoonwasacquiredbyVivendiGames;(3)ClosingsDllpending
($bn)
($bn)
(1) (1)
(2)
(3)
OPEN WORLDS, A MAJOR GROWTH DRIVER
A DIFFERENT POSITIONING, A DIFFERENT ORGANIZATION
FY08 FY15
7 % 33%
OPEN WORLDS SHARE OF TOTAL MARKET*
*NPD,GFK,value,physicalsales
79
ONLY UBISOFT CAN REGULARLY DELIVER OPEN WORLDS
= GREAT VISIBILITY YEAR AFTER YEAR
A DIFFERENT POSITIONING, A DIFFERENT ORGANIZATION
UBISOFT EA ATVI TTWO KONAMI CD PROJECT WARNER
FY14 AC 4 GTA V BATMAN
FY15
AC UNITY FAR CRY 4
WATCH_DOGS THE CREW
DRAGON AGE DESTINY
FY16 AC SYNDICATE
FAR CRY PRIMAL THE DIVISION
METAL GEAR
THE WITCHER
BATMAN MAD MAX
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WHY 9000 STUDIO EMPLOYEES?
2/3 OF PRODUCTION IN COMPETITIVE COST COUNTRIES and our costs are materially* lower than direct peers
To create G R E AT N E W I P S
To take advantage of O P E N W O R L D G R O W T H
To have better L O N G - T E R M V I S I B I L I T Y O N O U R P I P E L I N E
To come back S T R O N G O N T H E M U LT I P L AY E R F R O N T
To bring G R E AT D I G I TA L S E RV I C E S
*Internal estimates
A DIFFERENT POSITIONING, A DIFFERENT ORGANIZATION
81