Ubisoft 2013 Annual Report Download - page 2

Dear Shareholders,
Ubisoft’s financial performance in FY 2012-13 was
superior to the objectives communicated a year ago.
Up 18%, our sales for 2012-13 reached €1.256 billion
and translated into an 11% global market share over
calendar year 2012. Our non-IFRS operating income
reached €100 million, an increase of 79%. Our non-
IFRS cash flow from operating activities clocked in at
€28.4 million as opposed to €8.2 million in 2011-12.
The talent and expertise of Ubisoft teams enabled
the company to succeed in tough market conditions
and despite the decrease of the casual segment. I am
convinced that this performance is also a result of
actions taken to establish an even closer relationship
with our fan communities. Ours fans’ passion and
involvement provide a real boost for our brands and
for our teams.
In addition to improved financial results, 2012-13 was
also marked by several major advancements for Ubisoft:
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Our games surpassed all of our expectations last
year and were supported by some of the biggest
marketing campaigns ever implemented by Ubisoft
teams. The third opus of Assassin’s Creed drew
many new fans to the brand thanks to the popular
American Revolution setting and iconic hero,
Connor. Assassin’s Creed 3 broke a new record
with more than 12.5 million units sold (sell-in and
digital sales combined). Just Dance also confirmed
its position as a major industry franchise with more
than 8.5 million units of the latest installment sold in.
We are proud to continue making millions of people
dance throughout the world. As for Far Cry 3, this
game encountered huge success and marked our
return to the massive shooter segment with more
than 6 million units sold (sell-in and digital sales
combined). This game received exceptional praise
from both gamers and the media. We kicked off
2012-13 with two flagship franchises – Assassin’s
Creed and Just Dance. 12 months later, we have
broadened our offering substantially with the
addition of Far Cry and Watch_Dogs, one of our
new brands with a lot of potential that hasn’t ceased
creating buzz since it was unveiled at E3 last year.
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Our online and digital revenues registered strong
growth of 86% last year reaching €148 million,
representing 12% of our overall sales for the year.
The know-how we developed on online PC, mobile
and tablet games will be a key asset for winning the
next-gen as these new consoles will integrate all
of the innovations born in online over the past few
years. These additional functionalities will enable
us to offer gamers even richer experiences. For
example, I am referring to the extraordinary potential
of social gaming, co-creation (additional content
created by gamers), the power of asynchronous
gameplay making it possible for people to play with
their friends even when they are not connected,
or the possibility of jumping into gaming worlds
through accessible interfaces like mobile phones or
tablets.
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Once again, we progressed in this domain last year
with the development of our communities, customer
data analytics and our Uplay platform. Uplay is a
great way for us to get closer to our consumers and
to better meet their expectations through tailored
deals and content that respond to their fundamental
needs and desires. Uplay also gives us the ability to
immerse consumers in our worlds, while facilitating
interactions with their friends and fan communities.
For Ubisoft, it is a unique opportunity to create more
traffic in our games and increase player loyalty by
rewarding and engaging them through personalized
VIP programs. Today, Uplay counts more than 50
million gamers and it is a platform with a unique
cross-platform positioning (covering 10 different
platforms already). We also have strong growth
perspectives with direct distribution via Uplay. Our
ambition is to increase our digital sales for Ubisoft
titles as well as for partner titles that round out our
games and services’ offering nicely.
A statement from 