Ubisoft Entertainment SA (UBI) Earnings Call Transcript & Summary

Good morning and good afternoon, everyone. I'm delighted to welcome you to this combined general meeting of the company. This meeting takes place at a critical juncture for our company. We are marking the 40th anniversary of the company that was founded in 1986. And ever since then, our history has been built around a simple conviction, great names are the result of a combination of creativity, technology and an entrepreneurial spirit. And that legacy has prompted us to reinvent ourselves to keep creating experiences likely to surprise, engage and indeed impress players on a lasting basis, and this is the spirit in which we are addressing the transformation of the group today and preparing the future of ubi. I draw your attention to the fact that this is a public meeting. It will be broadcast live, but also you will be able to see it in replay on the company's website. During the meeting, we'll be taking -- looking back on the last year, but also we'll look at not just our achievements, but the challenges we've encountered. And I'll also talk about the group's strategy, the ongoing transformation. And then we'll share with you our objectives for the years to come. Having said that, we will now put together the bureau of this meeting. It will be for me to chair the meeting in my capacity as Chairman of the Board of Directors. So we could have 4 scrutineers, the 2 shareholders with the largest number, of those Guillmo Brothers represented by Christian Guillmo; and Guillmo Corporation S.A. represented by Vanentenumo. And then with the [indiscernible] agreement, I will also suggest to have Cathy Bulluck, who is Ubisoft's Administrative Director and Secretary of the Board of Directors to be the Secretary of this meeting. Having said that, the meeting is open. We also have here members of the Board, Mr. Alexandre Beville, who is with [indiscernible]; and Mr. Guillaume Ro, who is with Ernst & Young. They are, of course, our auditors. Then we have Mr. Eric Miller, who is a judicial officer; and Frederick Duguet is, of course, the company's CFO. We have a number of preparatory documents. They were made available in the standard timetable and in keeping with standing laws and regulations. The -- all the documents are also available not just on this desk, but also available online or in paper version as well. We will have to take decisions on -- based on the agenda that has been published on the official gazette on 11th September 2026. No shareholder propose to add new items on the agenda or indeed new resolutions. We have a provisional quorum. We have counted out the number of shareholders. So we have the number of shareholders either present or represented or having voted standing at 66,082,408 shares out of the 138,701,386 shares of the company. And the voting rights, are -- represent 47.64% of the total number of shares. During this AGM as we have more than 1/4 of the shares represented, we are in a position to address the items on the agenda. The final numbers will be finalized later on. Regarding the meeting itself, we'll start with presenting the group's performance, our strategy and indeed our objectives for the years '27 and beyond. Then there will be, of course, resolutions for you to vote upon. We'll give you a -- well, the auditors will give you a report of their work. And then we'll have a Q&A session. And of course, by then, we will need to recognize that the final quorum before we can vote on the actual resolutions. Right then. So let us start with a general presentation of the group's performance. And first of all, if we can move on to Slide #5. What I'd like to do is review the video game market and look at our lines of strategic development. Frederick here will then tell you about the year's financial performance and indeed our financial objectives. So on the next slide, we find that the video game market is accelerating. It's stepping up with a very robust outlooks. So the global video game market has confirmed its return to dynamic growth, having stabilized between 2021 and 2024. So growth is resuming to the tune of -- it's expected to resume to the tune of 6% per year on average between 2024 and 2028 and indeed get beyond $233 billion in revenue by that by 2030. Now of course, that market started off with a boost in the post-COVID period with an annual average growth of 15% period between 2019 and 2021, and then it paused all the way to 2024. So that was the stabilization as we've mentioned last year was to do with, of course, the streamlining of capital expenditure, but also payers becoming more selective. So as I said, 2025 saw a resumption of growth, significant, up 9%, upwards of $200 billion in revenue. There are 3 factors explaining this. There's a very powerful PC market, up 12%, and that is because of major AAA launches. And then the consoles market is now returning to growth as well, and that was mostly driven by Switch 2, very successful that. And then the mobile market is also up, up 11%, driven not just by China, but Europe as well. In the medium term, we expect the market to grow driven by PC and mobile segments, and both are expected to grow to 7% per year over the period 2024 to 2028. The console segment is expected to grow 3% on average per year. That momentum is based on sound demographic fundamentals. A number of players around the world has grown from 300 million in 2010 to about 3.6 billion in 2025. And that market is expected to keep growing and get past 4 billion players by the year 2030. And this confirmed stepping up of the market is a very positive starting point, and you'll see this in the presentation to come. So starting with the -- well, our core segment, namely consoles and PCs, and they account for most of our revenue right now. So as I said, there were contrasted times after the peak that -- the peak of 2021. It's now -- after going up and down, it's now returning to growth. We're expecting 5% per year growth between 2024 and 2028 with about $100 billion in revenue expected by that time compared with $82 billion in 2024. Well, that was 2 years ago more to the point. Now that growth, as I said, is driven by 3 main segments, 3 components, basic gaims that have been picked up after a period of stabilization and additional revenue, and that's downloadable content and micro transactions. And that, in fact, is the largest single source of income for that segment. And then subscriptions. Subscriptions have been growing both at Sony and Microsoft. You see a growing number of subscriptions. So we're in a good position to take advantage of this positive momentum. We've been refocusing our capital expenditure looking at our historic franchises that is those that are the most successful. We are also well positioned because, as I said, we've been refocusing our activities to the strong brands to let them grow not just in the video segment, but other segments as well. We'll mention that later on. Having said all that, so you have long-term trends in the market, but there are 5 strong factors that have really been decisive, not just for us, but for the industry at large. The PCs have confirmed their significant and growing part in this industry, and that is driven by a strong engagement of players even though the price of components is going up. Then yet there's a real demand and appetite on the part of players for remix and remasters. And well, we've seen a number of cases in point earlier this year with new remakes. And that, of course, means that we have old license come back to life as it were. And they are enjoyed not just by new generations of players, but also we can capitalize on the existing universe. Now the market has become more selective. In other words, players have been rewarding high-quality games with the creative ambition, and they will be less willing to purchase those that do not fulfill their expectations. And we find that people will be buying exciting games and they will simply snub the others. The fourth big factor is the user-generated content and the creator economy is now becoming the cornerstone of the live experience because what happens is players themselves become creators, but they also, of course, serve to enhance the visibility of our own brands. When they become involved, they can talk about them on the social media. And of course, this, by word of mouth, helps advertise production. And then, of course, we've been cutting costs relentlessly. Of course, there was a period of overinvestment during the peak period and now we're much more disciplined in capital allocation. And indeed, capital expenditure is being very carefully scrutinized. There's also been restructuring to make sure that, well, the headcount is in line with our needs. Anyway, these 5 combined factors confirm that our -- we're focusing on strong brands together with a demand for high quality and creativeness and strict financial discipline. All this, of course, is in line with the new market momentum. Anyway, let's move on to the main lines of development, strategic development. Our strategic focus is based on 2 pillars, and that's been confirmed. On the one hand, we propose to regain leadership on the segment of adventure games in OpenWorld. And then we will pursue our strong headway in native service games. So that is games that already exist that have recurring income. Now the market of adventure games in OpenWorld brings together experiences designed to punch players inside the adventure in an immersive universe with an exciting story. And that dynamic market is worth about EUR 25 billion, and that should grow in years to come. It's based on significant technological breakthroughs that has high entry barriers. And on this market, we can, of course, lean on key franchises such as Assassin's Creed, Far Cry, The division, Ghost Recon and other big brands. Now in that segment, we propose to keep offering new immersive experiences that can bring in new players into our universes and this also reach new audiences, especially when you have multiplayer experiences and of course, the mobile access will widen access to our games. And of course, we are also expanding our presence on native service games. And so this is based on experiences designed to engage players on the long term with a sort of a captivating gameplay rewarding progression, but also with social interactions and frequent updates to the content. So our teams propose updates on a regular basis. So this growth market accounts for about -- is worth about EUR 130 billion and has, at its disposal, the largest addressable market, both in terms of -- well, in both in terms of numbers of players. And you have to see that these players are played not just in -- well, played around the world, in China and around the world as well. So in that segment, we -- in particular, we -- as I said, we successfully installed our new game, Rainbow Six. It has become very powerful, not just in the Western world, but will make its inroads in China shortly. It has become one of the big games, one of the very profitable games for this company. And now indeed, Rainbow Six is part of the -- is in [indiscernible] in terms of monthly average users, both on consoles and PCs. And of course, our ambition is to make it into the top 10. So over and beyond this sort of flagship game, we also propose to make headway in this fast-growing market by enriching existing experience, but also by capitalizing on new launches. And of course, as you know, some launches are already in the pipeline, and we have a new brand we recently acquired called March of Giant. And as soon as this Friday, you will find reviews of that for that new brand. Anyway, the strategic focus offers prospects of recurring income and profitable growth that also enables us to take advantage of our existing powerful franchise. We also are making selective investments in our own proprietary technologies. And of course, the idea is to develop a lasting competitive edge. We have our game engines, Evil and Stowdrop that have been recognized as some of the -- amongst the best game engines in the world. But the market of AAA games has become lastingly more selective and more competitive. Having said that, when you have an outstanding AAA game making it, its financial potential is greater than ever. And so indeed, in that context, we embarked upon a major overhaul of the group with a single objective and that is to gain -- regain, rather, leadership in this field. And then, of course, make conditions for lasting and sustainable growth. We have 3 lines of action. First, we have an operational model based or built on what we call our creative houses. I'll tell you more about that in a moment. And then we are, as I said, refocusing and streamlining our portfolio. We've reviewed our portfolio. We terminated 7 games that we were in the process of developing, and we are allowing more time to more games, precisely with a view to making them as good as possible when they come out. And then another adjustment in volumes, headcounts and costs. We have been cutting costs. We've closed a number of studios, and we've engaged in restructuring. Now restructuring is always a difficult thing to do, but of course, this has had financial results already. But having said that, our objectives remain the same. And again, as I said earlier, our goal is to regain leadership on the segment of adventure games in OpenWorld and make, as I said, also headway on native service games. But a few words about the organizational review and indeed, the change in governance. What's behind all that is to strengthen the implementation of our strategy and regain creative leadership. You may have to remember that over the past 30 years, we really clearly were the creative leaders of the industry. Now this reorganization is based on a simple principle. We have now integrated units and now the so-called creative houses have their own decentralized and fast structures and as close as possible to the needs of the players. So we have these creative houses that bring together creative forces and operational forces of the group. So you have lead studios, dedicated lead studios. We have, therefore, 5 such studios, including Vantage Studios. That's the largest single studio. And they can count upon our creative network, and that's a network of partner studios that provide top quality production and expertise, but they can also lean on core services that is shared and standardized services for production and technology. So you provide technology, we provide infrastructure and indeed, operations that enable every single brand, every single team to focus on its core business. And then at headquarters, we are carrying our long-term strategy by being very strict in the capital allocation. And so with a simpler and decentralized structure, we should find the agility and creative excellence that, of course, have enabled Ubisoft to be a leader in this industry. So let's look at these creative houses. As I said, they have their own dedicated expertise and creative genres. So you have a decentralized market. Each unit has its own development branches and its own go-to-market. So they're fully autonomous, both in creative and in financial terms. So as I said earlier, Vantage Studios, our first creative house of [indiscernible] run by Christophe Dorn and Charl Guillimo. Its purpose is to grow our historic franchises Assassin's Creed, Far Cry and Rainbow Six. In the long run, we expect each of these brands to generate more than EUR 1 billion in revenue. So for this, we lean on our studios in Quebec, in Montreal, in Sofia, in Barcelona. We have a studio also in Sage in Sherbrooke, all these studios combined to support Vantage Studios. The second creative house is driven by Christoph Hartman, and it's dedicated to competitive game experiences and cooperative games and they're focused on battle games, battlefield. So you have games taking place in a conflict environment. So you have such brands as Ghost Recon, [indiscernible], The Division and March of Giants. And the supporting studios are the massive studios in Sweden. We have massive studios in Paris, in Toronto and also in Montreal. And then the third creative house is driven by Julien Paris, and its purpose is to operate well selected live experiences with a high multiplayer social component. So it brings together [indiscernible], For Honor, Riders Republic, Skull Bones and The Crew. And they are leaning on the studios in Montreal, the Ivory Tower in Lyon and Blue Mammoth in the United States. The fourth creative house is turned to a fantastic immersive narrative universes, and that's driven by [indiscernible], Beon Go and Evil, Might & Magic, Prince of Persia and Raymond, working with the support -- the studios in Montpellier, Mains and Milano. The appointment of the General Manager has not been announced yet, but we are making good progress on that. And finally, the fifth creative house is also run by Julien Vares, and its purpose is to renew and indeed reinforce Ubisoft's leadership on the casual and familiar family segment. So it brings together our entire mobile and casual portfolio, including Hasbro, Hungry Shark, Invincible, Just Dance, The Catch-Up portfolio and indeed, the idle Colibri game portfolio as well as You Know. And it is supported by the studios in Paris and the Colibri Game Studio in Germany, the UB Barcelona Studio, the catch-up studio, of course, and a studio in Abu Dhabi. So that organization, so you have these 5 creative each has its own distinct creative genre, which means we can have a differentiated approach for each brand and be really player-centered, focusing on the expertise of our teams and the specific experience with specific types of games. So each creative house is specialized on a specific market segment, which it fully masters. And of course, the competition segment by segment has become fierce. A few words about the first tangible results of this transformation. First -- well, first, launch of a very high-quality game as well as our ability to attract new and both high-level talents. So the first event, the remake of Assassin's Creed 4: Black Flag [indiscernible] and that did extremely well. The commercial launch was very successful. It surpassed our annual expectations in the first 14 days of sale with 3.5 million units sold, and it was also very much sorted critically and by players with a score of 84 on Metacritic and on OpenCritic. And you can have the commercial. [Presentation]

It's very high level of quality. This launch recorded a historically high proportion of PC sales for the franchise because usually these games sell much more on consoles, but it was mostly driven by the U.S. and Chinese markets, China, where we're beginning to see much higher penetration. This is a concrete illustration of the growing importance of this segment, the PC segment, which we're going to discuss in our market review, highlighting especially the support of Tencent on the Chinese market in particular. This success is the first tangible signal of the group transformation benefits, a tighter organization that is more disciplined in its choices that can deliver high-quality content. This momentum is also followed by enhanced capacity to attract world-class talent. We saw that with recruitments for the positions of General Manager within the creative houses, as I mentioned earlier, but also with a record level of what we call boomerangs, i.e., people who used to work at Ubisoft and who came back to Ubisoft after a few years. And we have seen this notion of a high proportion of boomerangs in the last 3 months. So these people are very interesting because when they come back, they come back with all the know-how that they already had. So they -- from day 1, they can start working on projects they are familiar with, engines that they are familiar with and also colleagues that they are familiar with. So now I wanted to talk about generative AI. This is something that is hugely influencing the company and which is a major disruption that should allow Ubisoft to grow and work again on its brands to grow them. Now I wanted to focus on a major strategic aspect for our industry, the adoption of generative artificial intelligence, which is a true technological revolution for video games more specifically. Regarding the game experience, last November, we revealed teammates, which is a prototype illustrating our vision of what generative AI can provide in terms of gameplay. The players' voice shapes the real-time experience via Sophia and Pablo. I'm giving you a few examples of what was presented, which are 2 nonplayer teammates, which are AI enriched that respond to voice commands or also Jaspar, an in-game voice assist that can scout enmities, that can share universe law and adjust game parameters. now you can watch videos to familiarize yourselves with what these characters can bring and how the world is changing. [Presentation]

So what is very interesting for our games is that we'll also be able to enable people to steer a game with voice commands and giving access to all people who don't like to use a pad or who have difficulties finding their way around in 3D games. And so games could become accessible to everybody that way because there won't be any more obstacle between the machine and the gamer. Now to explain more details, on the production side, we've provided many development teams with generative AI tools, including those. They are now used in fields as diverse as prototyping, tests, software development or content iteration. The adoption rate is also very high within the group, especially thanks to support and training for employees. And this is also already reflected in tangible productivity gains, which allow us eventually to produce more content at a better cost. Our goal remains clear: provide our creators with better tools to design better games with richer gameplays and thereby open up new possibilities for players. This is really a sea change in the market, which is going to help a lot for our sector's growth. And that way, we can compete better also with -- we can compete in areas where gamers are spending a lot of their time like TikTok, for instance, for the younger generations. Now I wanted to talk about Gamescom, which is the German trade show, which is the biggest show in the world, where we were in August. And I wanted to share some of the announcements that we made at that show. They illustrate how rich and dynamic our portfolio and pipeline are, as you can see. We announced a full remake of Heroes of MIT Magic 3, which is a fairly old game. It was -- it's a classic from 1999, and the release date is expected at the beginning of 2027. And that will help reenergize the brand, which was a dormant brand for us, but it's really a PC brand and which is fully aligned with the strategy that we want to have for the company so that we can sell these games, of course, on the Western market, but also on the Chinese PC market, which is a very important market for us and on which this brand was already very effective. We also revealed Rainbow Six Tactics, a tactical turn-by-turn game in the same spirit as XCom. Release is also slated for 2027. This is a major element for the Rainbow Six brands to be present on different types of games, which are, of course, connected. And we presented Raymond: Legends Retold. We offered a playable demo of the game, including the opening level and a 3D sequence so that we could show the changes in the game because back then, it was a 2D game, but it's now switched to 3D, and it was very well received by the community. Now regarding Rainbow Six Siege, we revealed a new operator, [indiscernible], as well as a full overhaul of the Villa map. We also announced the switch to 4 new operators per year because for a while, we had been around 1 or 2 new operators a year, but it was important to ramp things up again with more regular releases of operators on the brand because it generates a lot more player engagement and revenue. We also presented The Division 2. We revealed a DLC called Ecos of Central Park. And we also confirmed the arrival of multi-platform cross-play in the next few months as early as November, in fact. And finally, we launched what we called the Player Council, a new community platform that is PC oriented, so our players can test games in development and discuss directly with our teams. They make comments that are taken up by the team and possibly included in the game. And that way, we can get much quicker market feedback, and we can also create a relationship with players. When they've been involved in the creation of the game, they will support the launch and the whole lifetime of the game because they are more excited by the games. All these announcements evidence how energetic our franchises are and how able we are to renew the experience that we offer our players, be it our historic licenses or our live games with a focus on PC, which will still be a strong focus in the future. Rainbow Six Tactics is also a game that will sell a lot on PC. Now I will give the floor to Frederick, who will come back to the results for the financial year.

Thank you, Yves. Good afternoon, ladies and gentlemen. Indeed, now I'm going to present the results for the fiscal year '25, '26 as well as the progress made on our cost reduction program, and I will also come back over the outlook for the current fiscal year '26, '27 and the levers that we are actuating to support our return to profitable growth on a lasting basis. Let's start with a few key figures of the fiscal year '25, '26. This is a fiscal year marked by a deep overhaul of the group, reflected in net bookings of EUR 1.53 billion and non-IFRS operating income of minus EUR 1.04 billion. This is related to accelerated depreciations that we decided to book after the deep review of our games portfolio, which reflected, as Yves mentioned, some postponements or cancellations of games in order to refocus our strategy and optimize quality. Net free cash flow was minus EUR 443 million for the fiscal year, reflecting the necessary investment for a very big launch program expected for FY '28 and '29. And as we said, we continued implementing our fixed cost reduction program with an extra EUR 118 million in savings over the fiscal year. And a year ahead of the plan, we have now reached EUR 325 million in savings since FY '23. Regarding player engagement, our activity indicators are still solid. We had 129 million active unique players and 36 million active monthly players on average on consoles and PC and our 2 flagships, the Assassin's Creed and Rainbow Six brought together 30 million unique players and for the fifth consecutive year, extra evidence of the strength and resilience of our historical franchises. Let's look at the non-IFRS profit and loss account for '25/'26. Net bookings stood at EUR 1.525 billion versus EUR 1.846 billion the previous year. Gross margin is still at a high level at 89%, in line with the previous year. Research -- non-IFRS research and development costs stood at EUR 1.856 billion, a significant increase compared to EUR 1.29 billion the previous year. This change is mostly related to accelerated depreciations that we booked after the games portfolio review. Conversely, our non-IFRS SG&A costs kept declining to EUR 548 million versus EUR 629 million the previous year, an EUR 81 million reduction, reflecting the continuation of our cost reduction program. Non-IFRS operating income stood at minus EUR 1.45 billion. Regarding the statutory accounts, operating income stood at minus EUR 857 million, a EUR 614 million decline compared to the previous year, a shift related to depreciations booked in line with the portfolio review. Financial income is down by EUR 410 million, mostly because of the lack of dividends paid out by our Canadian subsidiary for the fiscal year '25-'26 compared to EUR 404 million the previous year. Exceptional income is up strongly by EUR 1.806 billion because of the capital gain of EUR 1.202 billion made on the contribution of assets to Ubisoft Nova SES that we call more commonly Vantage Studio and also reversals of provisions for tax purposes of EUR 715 million compared to previously booked depreciations. The net income for the fiscal year was EUR 875 million versus EUR 93 million the previous year. Regarding the cash flow, the consumption of free cash flow was at EUR 43 million versus a generation of EUR 128 million the previous year. This is reflecting a more subdued release calendar, which reflected -- which resulted in a lower gross margin generation when we kept investing ahead of a big content program for fiscal years '28 and '29. For the balance sheet, non-IFRS net debt improved to EUR 187 million at the end of March versus EUR 885 million a year earlier, reflecting the cash influx related to the investment into Vantage Studios. Available cash and equivalents is at a comfortable level of EUR 1.35 billion. Now I would like to come back to cash and our debt schedule. As I've just said, at the end of March '26, we had cash available of EUR 1.35 billion, which gives us good financial flexibility. Our gross debt is made up of 3 instruments mostly, our convertible bonds, a bond issue and amortizable loans. The main maturities are distributed as such. Our bond issue of EUR 675 million maturing in 2027, November '27, about EUR 481 million of convertible bonds maturing in 2028 and the second tranche of convertible bonds of about EUR 495 million maturing in 2031. I would like to say that the 2028 OCN bondholder have an early sell option in November 2026, and we have enough liquidity to address this potential event whilst covering the cash burn for the fiscal year. Moreover, our work to implement a midterm -- a suitable midterm financing pattern is moving on well. Now I'd like to focus on our cost reduction plan, which -- where we made major progress during the fiscal year. We are ahead of the schedule and the goal. The total headcount for the group was down by about 1,200 employees, whereas the churn rate was close to the historically low levels, in particular, for our senior profiles. Our fixed cost base is at about EUR 1.435 billion at the end of the fiscal year '26, down by EUR 118 million over year. This is a total reduction of about EUR 325 million or 18% compared to our reference fixed cost base, which is the fiscal year '22-'23. Based on these gains, we are now launching the third and final phase of our cost reduction program with a new goal to have a fixed cost base of EUR 1.25 billion annually by March '28. This selectivity and organizational efficiency effort is an essential pillar for our return to profitable and lasting growth. Now coming to our goals for the fiscal year '26/'27. We are anticipating net bookings down by a high single-digit percentage as well as negative non-IFRS operating margin with also in the high single digits. Moreover, our free cash flow consumption should not exceed EUR 500 million over the fiscal year. Beyond this transition year, we aim to come back to a positive free cash flow and positive non-IFRS operating income as early as '27, '28, and then robust generation for fiscal '28, '29 and a cumulative positive free cash flow for the entire period '27,'29. This trajectory will be based on a significantly bigger content program coming from our major brands for the fiscal years '27,'28 and '28,'29, including Assassin's Creed, Far Cry and Ghost Recon and the acceleration of live activities, especially Rainbow Six Siege. And I will now give the floor back to Yves Guillemot for the conclusions.

Thank you, Frederick. To wrap up, we have a market which is growing again in a major way. We have a PC market, which is becoming very dynamic so that we can make inroads into the Chinese markets and the Asian market more generally. And we've been working on this group transformation by creating 5 creative houses and by recruiting high-level talent to lead them. We have strongly reduced our costs as well because the goal is to reduce costs by EUR 500 million between financial year '23 and financial year '28, so between March '28 and March '29 to go from EUR 1.750 billion to EUR 1.250 billion. And we can see the first items that lead us to think that more direct contact with the team, with tighter teams and management that is closer to the team helps us move faster in a very competitive market. So it's very encouraging. The other major element to consider is really the arrival of the AI disruption, generative AI, which is something that is deeply changing our markets, and we can have market -- we can have games that are smarter that way that can respond a lot more to the players' actions. And that will also allow more people to play because with the use of voice to steer the game, we can allow anyone to play. And so here also, this is a big shift. Ubisoft was very strong in the past to leverage technological change. And now with the right team, we are tackling that issue to be able to leverage it. So that was the strategy. And now let's move on to the presentation of resolutions. As usual, I will not read the reports of the Board or the text of resolutions. Moreover, before we continue, I wanted to thank Ms. Catherine Hayes as well as Alfa Zolgati and Mr. Leonel Boucher, whose terms of office are expiring. And they contributed a lot to the company through their energy, but also through their knowledge and expertise and how responsive they were with the issues that we faced. So many thanks for your contribution. I would also like to remember my brother, Claude, who tragically passed last summer. Claude had been following Ubisoft from the beginning with great loyalty, commitments and a deep belief in the company's potential, but also the potential of its team and brands. On behalf of the Board of Directors and the entire group and our family, I wanted to pay tribute to him today and express how grateful we are to him for his contribution to Ubisoft's history. And now I would like to give the floor to Frederick to introduce the resolutions.

Thank you, Yves. Our ordinary resolutions are about the approval of statutory accounts, consolidated accounts and the special report of auditors on regulated third-party agreements. In this respect, I'd like to point out that the 3 new agreements concluded in the fiscal year '26 are intergroup conventions between Ubisoft and Ubisoft Nova SES regarding the strategic investment of Tencent, Mobility Limited in Vantage Studios. Yves Guillemot as CEO of both structures will not take part in the vote. There -- these resolutions are also on the ex-post and votes on the corporate officers' remuneration. Regarding ex-post resolutions, information is on 422 of the universal registration document regarding detailed goals and the level of completion of performance conditions as well as the scales applied to the annual variable pay for Yves Guillemot. Corporate officers did not have any long-term variable remuneration for FY '26. For [indiscernible] resolutions, information are on Paragraph 421 of the URD with the remuneration policy that applies to directors, the Chairman and CEO and Deputy CEOs and how they are going to apply to fiscal '27. And still amongst the ordinary resolution, we ask you to authorize the company to continue its share buyback program. This is a resolution which goes hand-in-hand with the authorization given to the Board to cancel shares, a resolution for the extraordinary part. For the extraordinary resolutions precisely, the Board of Directors would like you to vote on a set of financial resolutions so that the Board can carry out capital increase operations on a flexible basis based on market opportunities. Amongst the main changes, we'd like to highlight resolutions 18 and 19 for issuances without preferential subscription rights. These resolutions still keep the flexibility offered by the Attract Act in terms of price setting given to the Board of Directors by the General Meeting in 2025. And with limits, the issue price cannot be lower than the weighted average of the share price. So the last 3 or last 20 stock market listings, it's up to the Board of Directors to change with a maximum discount of 10%. Resolution 18 raises the threshold to -- from 10% to 20% of capital with a mandatory priority time for shareholders. And Resolution 20 is there to allow the Board of Directors to reserve an issuance to one or several people specifically designated. This new delegation, which was introduced by the French regulation allows the Board to designate beneficiaries of issuances. The issuance price will be regulated in line with the decree from 11 December 2025 based on the closing price with a maximum discount of 10%. The other financial resolutions are in line with the previously previous resolutions that you voted on. The Board would like to also to approve resolutions of employee share ownership so that Ubisoft's employees can benefit from competitive packages so that they can have access to remuneration in shares or that they can have specific capital increases. And so we will submit to your vote 3 resolutions so that employees can participate in capital increases with a maximum discount of 15% for a maximum of 2% of the share capital. We'd also like you to vote on a resolution offering the possibility for share option plans or free performance share plans for employees limited to 1.5% of capital. Corporate officers and members of the Executive Board could not benefit from these awards based on this resolution. And with this resolution, we could also implement an other tool to build loyalty and motivate employees, especially abroad in the context of strong competition for talent, and we will have a mechanism to align the interest of beneficiaries on those of shareholders and strengthen the entrepreneurial culture of Ubisoft. Regarding the employee share ownership policy in line -- applicable in the group, the plans that would be put in place will have a vesting period of 4 years and annual unlockings as well as a presence condition. Similar to the performance share plans, the final award will be based on individual performance conditions. And you are asked to change the Articles of Association to make them comply with new rules related to gender parity within the Board of Directors and also to harmonize them with applicable laws and regulations. We are aware that the title of these resolutions is sometimes a bit complex given the legal that they use, and we are here to answer your questions. Now we will ask the statutory auditors to give us a summary of their reports.

All right. Well, it's always tricky to be the first one to use this microphone. ladies and gentlemen, on behalf of the Board of Auditors, I will present the reports we prepared for you, which include our audit opinion on the annual financial statements of Ubisoft Entertainment and our opinion on the consolidated accounts of Ubisoft Group, and my colleague will present the report on related party agreements. The report will be made available to you by the company and are included in the universal registration document, which you've received. We will give you a summary reading of these reports regarding Resolutions 1 to 4 submitted to you for your approval. Regarding our report on annual accounts, which will found on Page 310 of the Universal document, we unconditionally certify the accounts that have been presented to you and that are submitted for your approval at this AGM. Our report includes 2 observations, which concern once the implications of the first application of ANC Regulation 2022-06 relating to the presentation of accounts and the correction of the accounting error in the accounts for the financial year ended 31 March 2025 of a contract in one of the subsidiaries as described in Note 2 of the appendix. We then set out in the section justification of assessment, the key points, which to in our professional judgment, were the most important for the audit of the accounts they are at the level of the annual accounts. First, depreciation tests or impairment tests of internally developed commercial software. So we analyze the implementation methods for impairment test, both in terms of internal control procedures and verification of the consistency of sales forecast for the 5-year business plan. And we verify that the annex provides appropriate information. You'll find it [indiscernible]. This also includes the valuation of equity securities and related risk provision. We analyze the implementation of implementation methods of impairment tests to ensure that usage values are not overestimated. We've verified that the annex provides appropriate information. You'll find this in Note 17 to 23. We also confirm that our report provides all the other information required by our ply. With regard to the independence of auditors, specific checks, information provided in the management report, the corporate governance report and other legal notices. Now regarding our report on the consolidated financial statements, which on Page 24 of the universal registration document. Following the due diligence carried out by the Board of Auditors in accordance with the standards applicable in France. We certified without reservation the consolidated accounts presented to you for your approval. Our report includes an observation concerning the correction of the accounting error in the accounts of the year ended 31 March 2025 of the revenue relating to a license agreement. Within the section justifications for assessments, we set out the key points, which, in our professional judgment, were the most significant for the audit of the accounts. This concerns at the level of consolidated accounts. First, depreciation tests of internally developed commercial software. We analyze the implementation methods for impairment test, both in terms of internal control procedures and verification of the consistency of sales forecast for the 5-year business plan. And we've verified that the Annex provides appropriate information. You'll find it in footnote 22. Regarding goodwill and brands, we analyzed the implementation methods of impairment tests to ensure that recoverable values are recorded on the balance sheet, and we've certified that the Annex provides appropriate information. You'll find this in '19, '20 and '22. Regarding recognition of deferred tax assets of the French Task Group, we appreciated the likelihood that the tax losses carried forward could be used in the future, and we've verified that the annex provides appropriate information in footnote 30, and we have an evaluation of revenue from video games sales, including a service component and from licensing agreements. We analyzed the various contracts and car out audits on the accounting. And we verified that the annex provides appropriate information on 4 and 6. The details of the work and analysis relating to these key audits are described in our report on the consolidated financial statements. We also confirm that our reports provides all the other information required by law with regard to specific checks, including the absence of any comments on the Board of Directors' management report, information on legal and regulatory obligations, responsibilities of management and commissioners' accounts and the Audit Committee's reports. And we also attest to the company's compliance with the European Unique electronic identification format. That's all. Thank you for your attention, and my colleague will present a report on the related party agreements.

Thank you, Guillaume. Ladies and gentlemen, dear shareholders. Regarding the fourth resolution of this AGM, we've issued a report on related party agreements, which you'll find on Page 316 of the universal registration document. In this report, it is for us to provide based on the information that we have received, the characteristics, essential terms and reasons justifying the company's interest in the related party agreement in question without commenting on their usefulness or their merits. It is up to you to assess the benefits of entering into these agreements and to approve them. So this report informs you of the new related party agreements to be submitted for your approval for the past financial year. There were 3, as we said. Number one, was the conclusion of a shareholders' agreement relating to the company, Ubisoft Nova that we'll call now Vantage Studios. It was concluded on 21 November 2025 between the company's Ubisoft Entertainment and Proxima Beta B.V., also known as Tencent. The Board of Directors authorized this shareholders' agreement as part of the agreement between Vantage Studios, between Ubisoft and Tencent in the presence of Vantage Studio. That was finalized on 21 November '25 of EUR 1.163 billion and Tencent subscribed to new shares worth 26.32% of the share capital and voting rights. The shareholders' agreement defines the governance and liquidity rights of Ubisoft and Tencent as shareholders in Vantage Studios. The shareholders' agreement notably provides for the existence of an advisory committee with an oversight role, but without management powers. The shareholders' agreement governs the relationship between the company and Tencent with respect to Vantage Studios and specifies in particular, customary veto rights to protect the minority investment in favor of Tencent as well as certain consent rights on the disposal of significant assets of Vantage Studios and its subsidiaries and the rules governing the transfer of Vantage Studio securities, including a 5-year lockup of the securities. You'll find the details in a report about that. The shareholders' agreement is valid for a period of 50 years, renewed for successive periods of 10 years until -- unless one of the parties notifies its intention to resetting the agreement. The shareholders' agreement had no financial consequences for Ubisoft in the year ended 31 March 2026. The second shareholders' agreement -- related party agreement is on the disposal of the audiovisual business from Ubisoft Entertainment and Ubisoft Nova, Vantage Studio to Tencent. The commitment to sell took place as part of the agreement between Ubisoft and Tencent Studios. This enables Vantage Studios to purchase to have a purchase option on the audiovisual business of Ubisoft. And again, the details are in the report. And that engagement led to no financial consequences for Ubisoft for the year ending 31 March 2026. And finally, the third related party agreement is an amendment, a waiver to the intergroup contract of 18 May 2025 between Ubisoft Nova and Ubisoft Entertainment. The amount is of EUR 167 million. The disbursement is 26th November 2025, repay in November 2026. The rate is 4.906%, and there's a special provision to set the interest rate that can be retroactively applied at the date of the disbursement at the latest of 31 March 2026 after a benchmark was performed in line with the arm's length principle and formalized by a new -- an amendment to the commitment that was signed by both parties. Anyway, that alone led to an interest charge of EUR 3.14 million for the year ending 31 March 2026. And finally, there is a -- well, an existing relating party agreement, which we mentioned last year, and that's the framework agreement between Ubisoft Entertainment, Guillemot Brothers, Guillemot Corporation, Tencent and a number of directors that was signed on 6 September 2022. So that concludes our report on related party agreements. We also issued a number of technical reports on Resolutions 15 to 25 relating delegations granted to the Board of Directors. These reports were made available to you by Ubisoft. And then for the second year running, we've issued a sustainability information certification report and that has 3 parts. One, on the compliance with the ESRS of the process implemented by Ubisoft to determine the published information, in particular, the exercise of reviewing the dual materiality analysis. We did not find any inconsistencies, errors or admissions. The second part on the compliance of sustainability information included in the management report. Again, we didn't find any significant errors or inconsistencies and refer the reader to Section 5.5 of the report, which details possible emissions. And then a third part on the information published under the taxonomy. And there, we do not -- we did not find any mistakes, emissions of inconsistency. Thank you for your attention. Right then. Well, thank you, gentlemen. And now we'll move on to the questions, the questions from the audience. But before doing this, we will be reading out answers to questions that were put in writing by one single shareholder, and I'll ask Fredrik to read out these questions. Yes. And if I may, one clarification here. The call option of Vantage Studio is on the brands of Vantage Studio, not for the entire portfolio. So we received 11 questions from Mr. [indiscernible]. The question is the governance optimal when independent directors whose candidate has been vetted by the Board are appointed for the first term for a shorter period, only 2 years unlike other directors, in particular, the 2 latest directors, Axelle Lemaire and Andre [indiscernible], a way to reduce the power of independent directors? When are you going to change that rule to guarantee equal terms for present and future directors? Well, no, there's no such strategy. The duration of the terms were set to stagger the terms, you find this in Section 41231 of the universal registration document to avoid a full state renewal of the Board in line with the AEM practices, and this made it possible to smooth out renewals as follows 3 in 2027, 4 in 2028 and 3 in 2029. In any case, that doesn't change at all the weight of the voice of the -- or the votes indeed of directors. Question number two, do we have meters only for independent directors? And if so, how many annual meetings? The answer is yes. That information is to be find in the URD, Sections 41244 as part of the work of the Lead Director, 3 meetings of independent directors took place in 2026 and the duration varies from 1 to 2 hours. These meetings -- they are AdHoc committees only made up of independent directors as part of the supervision of the strategic investment strategy described in Sections 41221 and 41224 of the URD. Question 3, can you confirm that Board meetings are accessible online. The 2 new directors attended 64% of the meetings and 82% of the others, URD Page 94 were not -- were they not appointed, would they not asked to attend certain Board? If that was the case, that should be pointed out 64% out of 14 meetings is attending 9 sessions out of 14 and 82% of 42 meetings is more complicated. You end up with 85.71%. Anyway, how did you get to that figure of 82%. Because I get 11.48 meetings out of 14. So the answer is, of course, they can attend meetings online. Andre [indiscernible] and Axelle Lemaire were appointed at the AGM of July 2025. And therefore, their attendance rates are based on the only meetings that took place since they joined the Board, 11 meetings out of 14, 8 out of 11 for Mrs. [indiscernible]. So that's 73% and not 64% and out of 11 for Mrs. Lemaire. So that's an attendance rate of 82%. So we should remind the context, the year 2025 to 2026 was not typical. There were 11 Board meetings between July and 2025 and March '26 compared with 7 in the same period the previous year. And some were convened at very short notice and some directors could not have done because of professional obligations. But of course, we expect our directors to be -- to have a high attendance level. And indeed, we found that for all -- well, the external assessment of the Board found that all members attended strategic meetings to do with the transformation of the group. There was a question number 4, and there are 2 parts to that, 2 separate issues. The first part of the question is, can you describe the methods in which new games are provisioned while they're being developed. Right now, we seem to only have EUR 68 million or 4% of the total amount. On Page 32 of the URD, you can find a full description regarding depreciation of games upon closing for games whose launch is expected in 18 coming months. we have based ourselves on the use values compared to expected future cash flows. There's a depreciation if the use value is lower than the book value, and you find this in Section 6123 of -- regarding other intangible assets. And then for games being developed, and you find this in note 2022 of the consolidated accounts, that was EUR 216 million, 22% of the gross amount. But the second part of the question in our release of October 1, 2025, run by Charlie Guillemot and Christophe Dorn. We want to grow the iconic brands, the new, I mean, the new unit Vantage of the Future [ Milka ] Group, it has to succeed. Can the Board of Directors and the Chair of the Appointment commitment explain the reason why Charlie Guillemot was appointed? What was this performance to justify such an appointment? Could that not create suspicion on part of financial analyst for the market. Charlie Guillemot contributes a new look on the organization. He is modern and creative. He has a strong experience of the game -- video game industry, both as a player himself and as a professional, having run a number of studios. He's a good understanding of technological revolutions, in particular, generative AI and a strong entrepreneurial experience. He's launched a number of games. He's spent 1.5 years in the group, and his performance has led to tangible results. He co-drove the transmission committee that led to the new operating model that we've just outlined. And since the creation of Vantage Studios and under his leadership, a dedicated team was set up around the Assassin's Creed franchise. That organization brought about the commercial and critical success of Assassin's Creed Black Flag [indiscernible] a major quantum leap compared to previous versions. And over the same period, Wendel Studios also had a significant improvement in the position of Rainbow Six, as we mentioned earlier on. So its appointment was decided by the competent authorities, but the Appointments and Compensation Committee were not involved and were not supposed to be involved in that process. Question number 5, Wendel Studios is the same thing as Ubisoft Nova SAS Page 16 of the URD, set up on 26th November '25. There was a loan between Ubisoft Entertainment and Ubisoft Nova to the tune of EUR 177 million at a rate of 5.656% for a period of 5 years due on 26 November 2030, Page 299. Were there any collateral for this loan? And what's the -- what's in it for Tencent? Well, the auditors just went through the terms of that related party agreement. This is an unsecured loan between Vantage Studios and Ubisoft Entertainment. The terms and conditions were published on our website, Investor Relations and ESG. And the main items are as follows. The purpose of that loan was to meet the general needs of the company, including refinancing a number of loans outstanding. The amount is EUR 177 million. The interest rate indeed is 5.656%, and that's the result of a benchmark that was conducted in line with the arm length principles. The disbursement was 26 November 2025, and it is due on 26 November 2030. This loan at market conditions was involved the injection by Tencent of EUR 1.116 billion, shoring up the liquidity, the cash position of the parent company, so as to alleviate the debt of the group. And I remind you that Tencent is a shareholder. Question number six, with this new structure bring about a change in the 2022 agreement. For [indiscernible] there was a lockup period of a failure until 2027 and an 8-year stand till September 2030. The answer is no. These are 2 separate operations. The first agreement has no -- the second agreement has no effect on the first one. Question number 7, why this call option on the audiovisual option, this option be exercised at a net cost price or EUR 1 without valuation -- independent valuation by the market. Well, this mechanism results from a balanced agreement between Ubisoft and Vantage Studios, which we have to look at the whole. The audiovisual business was part of the scope, taking into account in the valuation of Vantage Studios that had been set at EUR 3.8 billion pre-money. Until such time as the option is exercised, this business is held 100% by Ubisoft. If it runs into losses over the period, Vantage Studio pays back that amount to Ubisoft. And so Ubisoft will recover the amount invested and will not be penalized by losses. Conversely, if the business becomes profitable prior to the exercise of the option. Ubisoft gets the full profit as shareholders without sharing with Vantage Studios. In this case, the nominal price of EUR 1 at the time of the [indiscernible] does not apply Ubisoft of a value that should not have been seen by the group was taken by the group. It is only after the option is exercised and the transfer has been performed that Vantage Studios can then cash in on the future profits of the company. So the mechanism is positive for Ubisoft and the shareholders for the period preceding the transfer, either Ubisoft recovers the losses or the Ubisoft will keep the profits generated. Question #11, Gerard Guillot earned [ EUR 6,200 ] pretax as a leader of the film TV business plus his income as a CEO and Director. What were the reasons behind this? Isn't there a risk of conflict with the audiovisual business option granted to Vantage? Well, this amount is Gerard Guillot's compensation as CEO of the film and television business, which he has been running since 2027 -- '17, sorry. This compensation is in keeping with market practices in the United States where he works. The film and television business continues the development of its content program, in particular, with the delivery of the Splinter Cell: Deathwatch series on Netflix, as well as the development pipeline, including a series for Assassin's Creed with actual live action shooting and an adaptation of Far Cry. That business meets a double objective, of course, to develop high-quality audiovisual projects around the Ubisoft Ben, but also provides for more visibility and desirability of our brand. In an industry where big entertainment brands develop through other formats, audiovisual adaptations can create a halo effect, which will have a significant effect on ratings and audience. And we found that when the Odyssey movie came out, it has a positive effect on Assassin's Creed Odyssey. That's a good case in point. Regarding the second question on the audiovisual option, there's no conflict of interest. First, only the independent directors were able to vote on the transaction. And second, the mechanism that we described precisely proposes to protect Ubisoft shareholders. Question 9, the float accounts for 74% of the capital and 68% of the voting rights. The disastrous collapse of the price on 9 March 2026 to EUR 3.75. Why did that not bring about the management to change policies after such a performance? What strategic decisions can return confidence to the market beyond losses, the postponement of launches, the termination of project depreciations, the layoffs and lawsuits was the contribution of EUR 0.10. A divide surprise that saved the present management from its predicament? Well, the answer is the Board of Directors decisively act by revamping the organization, both in terms of our operational model and portfolio with a view to regaining a leadership position, regaining agility and bring about a recovery, enabling the group to return to sustainable, lasting and profitable growth as well as cash. We had first 5 creative houses, each with its own general manager working from end-to-end, the creation, development, distribution and income statement. And so it's completely decentralized, and that applies both for creative and financial decisions. So completely [indiscernible] with this previous centralized model. And then we recruited experienced leaders from the outside, in particular, Julian Geris, who was in the 2K China in Tencent and Christoph Hartman, who was former Chair and Co-Founder of 2K and Senior Vice President of Amazon Games, but also with an in-depth review of the portfolio, leading to a more selective road map, the termination of projects and the postponement of 6 projects with a view to launching a major program of launches in 2028 and 2029. And then we considered a strict discipline on fixed cost. The intention is to bring about EUR 500 million savings accumulated by 2028. So that's 30% down compared to 2023. Regarding Tencent's investment in Venture Studios, it is a proof of trust in the new models that we have and in Ubisoft's ability to create long-term value. It also made it possible to strengthen the group's financial flexibility by deleveraging it and enabling it to support its future road map. Question 10, Resolution 14, Page 66 of the brochure, Max buyback price for the shares of EUR 70 when the current price is EUR 5.4 at 24th September 2026. The theoretical price, isn't it a way to justify the fact that Tencent bought a stake within Guillemot Brothers Limited on 6 September 2022 for a value of about EUR 80, whereas the share price was already low. If the amount of EUR 70 is based on calculations, could you share the fundamentals that allow the management and the auditors to set that threshold? The maximum buyback price in Resolution 14 is not an estimation of the share price or a forecast in line with Article 221062 of the Commerce Code. This is a legal ceiling that the Board asked the general meeting to set in order to have the necessary flexibility for the duration of the authorization, i.e., 18 months to implement the buyback program, whatever the market conditions. This ceiling should allow the company to execute the commitments already made on its own shares, in particular, the contract with CACIB with a reference price of EUR 66 that was prepaid in 2028. If the ceiling that is voted is lower than this amount, the company could not execute the contract and therefore, receive all the corresponding shares. Question 11, very wide dilution authorization. Page 59 of the brochure, the synthesis table for resolutions 16 to 24 is very clear, but only 2 resolutions maintain the preferential rights. These resolutions with a very low share price and high ceilings are not conducive to protect current shareholders with 70% of the float. What precise scenarios justify the ceilings and issuance benefiting Tencent and Vantage and the Guillemot family, isn't it -- shouldn't that be subject to a specific vote? The ceilings for financial authorizations without preferential subscription rights are limited to 10% and are fully in line with standards and policy recommendations from proxy agencies as well as the discussions with our shareholders. Resolution 18 can raise it to 20%, but with a priority deadline of at least 3 days of trading. Therefore, shareholders are protected any capital increase without preferential subscription rights without a mandatory priority period beyond the 10% would be subject to the general meeting. Naturally, in case of conflict of interest, especially if there are regulated third-party agreements that include common shared CEOs and shareholders for more than 10%, the legal procedure that is applicable would apply with a decision by the Board of Directors without the people concerned being allowed to vote Articles L225-38 and following of the Commercial Code. Beyond this legal procedure, the bylaws of the Board of Directors are also available on our website provide that the directors who have a conflict of interest should abstain from participating in preliminary deliberations and vote on the resolution in question. Thank you. Now let's move on to the Q&A with the room. As usual, we'll take blocks of questions, and please keep your questions to 1 minute if you can, and I'll ask the various people to introduce themselves when they ask a question. Over to you.

[Interpreted] I'm Claude Arch. In this year 2026, we are celebrating 2 anniversaries, 40 years since the creation of Ubisoft by the Guillemot Brothers in 1986 and 30 years of Ubisoft's first listing on the Paris Stock Market in 1996. The company's purpose is constantly asserted year after year " And entertain and enrich the life of millions of gamers. Video games are a major cultural medium that carries emotion and social connections with it ". Well, for this twofold anniversary, I have a question. Why are you not exceptionally opening up to your shareholders the doors of your studio, the one that is the closest here being the legacy Montroy studio in order to be able to witness the design and the building of a video game. By stepping into this studio into the reactor core, your shareholders would know you better and therefore, would keep their stake in their portfolio or may even increase it. It is true that you're not 40 years older every year. Thank you, sir.

[Interpreted] Thank you for this question. We are preparing events to celebrate the company's anniversary and we'll take your suggestion and request into account. This is something that will unfold in the next few months. So this is a very good suggestion.

[Interpreted] I'm Mr. [indiscernible] I'm a shareholder. I wanted to come back over the issue of the Ocean convertible bond maturing in 2028 for which bondholders can have an early sell option as early as November this year. The coupon is of 2.7%, I think, roughly and interest rates are much higher right now, you might consider that people will exercise this option as early as November. So there might be EUR 480 million to pay out for Ubisoft. Since free cash flow for the current fiscal year is minus [ EUR 550 million ] that means that Ubisoft's cash might potentially be severely impacted from the beginning of the next fiscal year. And there might even be a debt rollover issue for fiscal '27, '28. What debt refinancing solution would you have in mind in the very short term?

[Interpreted] Well, yes, indeed, I think that I discussed this item. Thank you for the question. I would like to remind you of the major aspects. At the end of March, we had a comfortable liquidity level at EUR 1.35 billion. So we have the necessary liquidity to cover the potential exercise of that option in November and also the regular cash burn of the year. And I said that we were looking at various refinancing options. This will be a well-suited tailored refinancing plan. There's nothing to say today. We'll inform the market in due course, but we are making good progress. Question and audible from the audience. We'll inform the market when a transaction is made in accordance with best practices. And keep in mind that we ended the year at the end of March with EUR 1.35 billion in cash and liquidity.

[Interpreted] I'm an individual shareholder. You announced that the launch of Assassin's Creed Black Flag exceeded expectations -- annual expectations in just 2 weeks. I think so congratulations. This successful launch marks a return to quality, and that's a good sign for future cash flow. My question is the following. After the successful deleveraging, thanks to Tencent, as you said, the next big maturity is that wall of EUR 675 million in November 2027. To address that, would you expect to use your cash and future free cash flow, which you announced would probably be positive to reduce this debt or would you roll over 100% of that debt on the market?

[Interpreted] Well, thank you for the question, which is connected to the previous one. You're right to remind us that we announced a return to positive cash generation from next year on, and we called that cash generation robust for subsequent years. So we're expecting cash -- the cash position to be positive from fiscal 2027 onwards. I can't say too much on the refinancing plan that we are working on, but it's designed to address the next maturities with this refinancing plan.

[Interpreted] I'm an individual shareholder, and I'm a wealth adviser. My question is in line with the previous 2. If it was very complicated to refinance yourselves, would you be ready to sell one or several creative houses to generate a bit more cash?

[Interpreted] Thank you once again for this question. I'd like to repeat that we are confident about the implementation of an adequate refinancing plan to ensure the operational rebound that we mentioned a minute ago. And for the moment, it's too early to give you any details about this -- the outline of this plan, Mr. Guillemot. But the idea is that we announced the capital increase that Tencent subscribed in Vantage Studios. And amongst the things that we are working on, there would also be the possibility of bringing in outside capital inside these creative houses, but we are not expecting to sell more than the majority of a company as things stand.

[Interpreted] I'm an individual shareholder. I had 2 questions for you. The first one is about the development of new licenses within Ubisoft. And the question was more about whether if new licenses were developed, would they be incorporated inside Vantage Studio or other creative houses so that we know the split more or less. And my other question is rather about the Paris stock market and the fact that this year, the short selling rate rose to 15% at midyear. Are you worried about that? And what is your method to support your share price?

[Interpreted] There are 2 questions here. I'll answer the first one, which is about potentially created brands by using the new disruptions on the market with generative AI. When these brands become powerful, well, depending on the type of brand that they align with, they will be distributed to one of the creative houses that were created. So they could be followed by a specialized team on the segment market for which they were created. That was question one. And for question 2, we've already got an illustration of this configuration because we announced the creation of a new brand to enter the mobile segment that illustrates also the PC and live games market. And this new brand is already in creative house # 2. On your second question, the rate that you mentioned is a bit lower now. But as we said and repeated time and again today, what is essential for us is to deliver and execute on the group's transformation with a very big program already on fiscal '28, '29, to which we'll add a major cost reduction program. The aim is to prove to the market that we're coming back to positive cash generation next year already, and that it will be robust in subsequent years.

[Interpreted] I'm an individual shareholder. I've got several questions. about the situation of the company. I have questions about 2 themes, mostly finances and then the operational side. Regarding finances, does Guillemot Brothers charge Vantage for consulting fees? And if so, by how much? And then a question about short selling to echo what the previous shareholder said, there are prepaid long-term contracts between Guillemot Brothers with Credit Agricole, Goldman Sachs and JPMorgan. These are securities agreements to artificially inflate the percentage that family holding has. There is a carry cost for that. Could you share the amounts and conditions on that? And this has an impact for the banks that have to cover themselves by short selling the stock. I might call that a defensive short sell. And to that, you should add an offensive short sell by Jefferies and hedge funds coming back to what the previous shareholder said, what can you do to reduce this sell pressure? And another question about Tencent's payment of EUR 1 billion. Vantage paid EUR 700 million to the parent company in dividends and loans. What are the conditions of this loan? And is this a sufficient amount to help? Is there enough money left to let Vantage grow? That was for the financial side.

[Interpreted] Well, for the last question, if I noted things right, you referred to the loan that we commented on in the previous session. Well, yes, absolutely. The EUR 177 million are a fraction of the EUR 1.16 billion that were injected. And so the goal is to initiate the company's deleveraging. That's what we did last year. So that's an agreement that reflects market terms, as I said, and it's fully in line with -- it was agreed to by Vantage's shareholders and the management. And what's more, Vantage Studio is meant to generate cash and not consume cash. For the previous question, you referred to derivative contracts that were established by Guillemot Brothers Limited with CASB and JPMorgan for the period 2016, 2018 as part of the [indiscernible] defense plan. Since then, the EUR 9 million in derivatives were mostly unwound. If memory serves, 6 out of EUR 9 million were unwound. And as Guillemot Brothers announced last March, that gives them the ability to gradually buy shares back and therefore, increase the position of the family holding in Ubisoft Capital, but limited to the 30% threshold. For your first question, does Guillemot Brothers bill any consultancy fees?

[Interpreted] No. The second part of my question has to do with operations. Could you give us an update on the sales of Assassin's Creed shadows that I liked personally? And why isn't Watchdogs included in the creative houses? I think that you didn't talk about that license. Do you want to use the Anvil engine, which is a very good engine? Would you like to open it up to outside studios? And regarding the governance of Vantage Studios, is Tencent involved? Have they got seats on the Board of Vantage Studios? And another 2 questions, one on physical media, there's a controversy with PlayStation. Are you still going to sell physical games and games without DRM or mandatory connection to play the games? And how many games are you currently developing after the restructuring?

[Interpreted] Well, that's quite a few questions. On physical games, well, we've got games that depending on their profiles are more or less well suited for physical distribution. So we are still producing games for physical distribution when the games profile and its audience and the relevant platform require it, I'm sorry. That's what we can say. And for Watchdogs, I can answer. In fact, it's a brand that hasn't been used much and which uses another engine than Anvil and Snowdrop. So it's not expected to put it in a creative house for the moment before it's potentially remade. And so it didn't receive any priority compared to the other existing brands in the company, but it's still a brand that we consider to be an important brand for the future. Regarding Assassin's Creed shadows, it's true that we didn't disclose any details. What we can say is that indeed, it is at a good level amongst the big titles of Assassin's Creed, but we can't say more about that in terms of sales. But at any rate, it's a game that was high quality and that performed well. Regarding Anvil, which is one of our 2 main creation engines, that's a recurring question that we regularly look at, but it requires a specific organization. If you want to monetize your engines outside, you have to use a lot of resources to ensure maintenance and services, which is not our core business right now. So that may be an open suggestion for the future. But for the moment, we're focusing on making sure that these engines can deliver the best service possible to our various games and gradually and continually get upgraded with innovation for our various brands. And that takes up a lot of the organization's focus. And for the moment, we didn't want to distract them from that, but that could be a question for the future. Regarding Tencent and Vantage Studios, they have a possibility of appointing a director with an observer seat within the governance structure.

[Interpreted] I asked the written questions. I had a question about the slide where you showed the various studios. When you talked about Vantage Studios, you said that the goal was 3x EUR 1 billion per game in the long run. Could you share expected dates for that goal?

[Interpreted] Well, indeed, the goal is to bring each of these brands to EUR 1 billion in annual revenues. No, we're not disclosing any time horizon. What we can say is that Rainbow Six Siege and Assassin's Creed are the 2 biggest brands for Vantage Studios. They have 2 different models. Rainbow Six Siege will keep growing, thanks to a large number of innovations that were brought to the game, new services, new content. Yves talked about 4 operators a year, which is key and also other features to make the game more social and targeting an audience which is very core but demanding. And we'll also see how Rainbow Six tactics can contribute more to the brand's growth. And as Yves also said, Rainbow Six Siege is going to be -- is going to grow on PC in China. And so that's another major lever for the brand and the game. And Assassin's Creed has got a very big development program over the next few years. We've already announced [indiscernible] and [ Invictus ], which are 2 major upcoming games, and there are also other games in the pipeline. The fact that the remake worked very well recently is also opening up other development opportunities for the brand. The TV show that we discussed should have a very big impact to make the brand even more mainstream and stronger on the whole world. Far Cry is lagging a bit behind in terms of development, but it's working well with a very big game on fiscal '28, '29. So it will come a bit later to reach that goal in the long run.

[Interpreted] I had a question. My son plays a lot of live online games, multiplayer games. So there are both enemies or teammates similar to what you had with World of Warcraft. I wanted to know whether that -- whether you have any such games? Or is that a completely different market?

[Interpreted] Well, as we said and as Yves presented, that's $130 billion as a whole segment out of the $200 billion for the total market. So that's the biggest segment in video gaming right now for all platforms. And it's all the more important as this is a recurrent market. Of course, you've got to bring content regularly, but with very high levels of retention and given the social aspect that you mentioned, either with friends or against opponents, against the machine really that lets you have recurring business. And as Yves said, Rainbow Six Siege is our biggest game in this area. I talked about March of Giants, which is going to be launched and grow, and we've got brands like Thorona. All the Creative House #3 that we mentioned is built on that type of games and games in Creative House 2, Ghost Recon and the division are going to be more and more social and multiplayer. So that's a major angle for future growth with a lot of reoccurrence and strong profitability. So these are avenues that we are pursuing as quickly as possible. If there are -- yes, please.

[Interpreted] Well, I wanted to discuss, well, you talked about that subject and partly what are the growth prospects in China because it's a limited market compared to the overall population size. So if you could enlighten us on that. And another thing is whether it would be possible to use another platform than Steam, which captures quite a bit of games profits. And Yes, that's it.

[Interpreted] Well, we've got quite a few games, and that's why I was talking about Rainbow Six tactics or Heroes 3, which is already approved in China. So it will be launched at the same time in China and in the rest of the world. So the more you go towards PC, the more you can reach that very big market. There are 600 million to 700 million gamers between PC and mobile there. So it's one of the biggest recurring markets right now on the planet. And so as we said earlier, we've got Rainbow Six as well which was in the test phase, and we are working on it with quite a few people getting ready to play. And we also said that we would have Chinese teams taking part in eSports competitions because that's also a very strong marketing element for these games. And we have other upcoming games that will be adapted to the PC market. So [indiscernible] China, there's a lot of potential. We're not selling directly. So we don't get the same revenues as we get in the rest of the world, but these are revenues that come more from royalties, so also fewer launch costs on the market. Regarding Steam, yes, indeed, Steam takes a share of the revenues, but still Steam is a platform that also allows us to sell in China as well without going through a complicated approval system. So we can sell all of our games in China using Steam, but their percentage goes down also depending on the sales that you have with them. If you're above a certain revenue level on the game, you pay less as a percentage to Steam. So there are other possibilities, but now it's a very good platform for PC, which has now a lot of users who log on regularly. So that's our platform of focus. We had and we still have an internal Ubisoft platform on which we can sell, but it's a minority compared to what we can do going through Steam. Thank you. If there are no further questions, I will now read the final quorum. The number of ordinary shares with voting rights is 138,701,386 shares. Given the attendance list, shareholders present, represented or who have voted by mail are 2,088 for a total of 66,091,191 shares with voting rights or 47.65% of the company's shares. The quorum required for the general meeting to validly decide both for the ordinary and extraordinary part is reached. So we are now going to start the vote. And before that, let's watch a short clip so that the legal officer and the scrutineers can go to the control room. Let's watch this short video. [Presentation]