Ubisoft Entertainment Aktie

[Interpreted] 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 Ubisoft. 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 votes Guillemot Brothers represented by Christian Guillemot and Guillemot Corporation S.A. represented by Valentin Guillemot. And then with the shareholders' agreement, I will also suggest to have Cathy Boulic, 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 de Belleville, who is with Forvis Mazars and Mr. Guillaume Ronco, who is with Ernst & Young. They are, of course, our auditors. Then we have Mr. Eric Miller, who is a judicial officer; and Frédérick 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. Frédérick 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 outlook.

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.

It 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 -- the 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 games 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 remakes 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 licenses 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 open-world. 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 open-world brings together experiences designed to plunge 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 10, 15 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 headways 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 Giants.

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, Anvil and Snowdrop 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, leave 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. 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 open-world 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 Derennes and Charlie Guillemot. 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 Saguenay and Sherbrooke. All these studios combined to support Vantage Studios. The second creative house is driven by Christoph Hartmann, and it's dedicated to competitive game experiences and cooperative games and they're focused on battle games, battlefield. So you have many games taking place in a conflict environment.

So you have such brands as Ghost Recon, Splinter Cell, 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 Bares and its purpose is to operate well selected live experiences with a high multiplayer social component. So it brings together Brawlhalla, For Honor, Riders Republic, Skull & Bones and The Crew. And they are leaning on the studios in Montreal, the one Ivory Tower in Lyon and Blue Mammoth in the United States.

The fourth creative house is turned to a fantastic universe of immersive narrative universes, and that's driven by Anno, Beyond Good & Evil, Might & Magic, Prince of Persia and Rayman working with the support -- the studios in Montpellier, Mainz 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 Bares, 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 Ketchapp portfolio and indeed, the idle Kolibri game portfolio as well as you know. And it is supported by the studios in Paris and the Kolibri Game Studio in Germany, the Ubi Barcelona Studio, the Ketchapp 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 all high-level talents. So the first event, the remake of Assassin's Creed IV, Black Flag Resynced 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 afforded critically and by players with a score of 84 on Metacritic and on OpenCritic.

And you can have the commercial.

[Presentation]

[Interpreted] As you can see it's a 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 Sofia and Pablo.

I'm giving you a few examples of what was presented, which are 2 non-player Teammates, which are AI enriched and that respond to voice commands or also Jaspar, an in-game voice assist, that can scout enemies that can share universe lore and adjust game parameters, now you can watch a videos to familiarize yourselves with what these characters can bring and how the world is changing.

[Presentation]

[Interpreted] 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 Might and Magic III, 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 Rayman 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, Noor 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 Echoes 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 Frederic, who will come back to the results for the financial year.

[Interpreted] 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 1.045 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 SAS that we call more commonly Vantage Studios 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 443 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 OCEANE 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.

[Interpreted] Thank you, Frédérick. 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. Katherine Hays as well as Olfa Zorgati and Mr. Lionel Bouchet, 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 Frédérick to introduce the resolutions.

[Interpreted] 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 SAS 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 ex ante 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 ex ante 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 [ Attractiveness ] 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 for 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.

[Interpreted] 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 registration 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, one, 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 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 in [ 19 ]. 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. -- and we've verified that the Annex provides appropriate information. You'll find this in Note 17, 23.

We also confirm that our report provides all the other information required by our [indiscernible]. 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 stays on [ Page 274 ] 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 Tax 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 [indiscernible] 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.

[Interpreted] 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. #1, 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 Studios. 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 rescinding 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 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 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 omissions. 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 did not find any mistakes, omissions or 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 Frederick 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 Loesekrug-Pietri, is 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 [indiscernible] 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 votes indeed of directors.

Question number two, do we have meetings 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 FY 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 three, 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 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 Loesekrug-Pietri 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 Mr. Loesekrug-Pietri. So that's 73% and not 64% and 9 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 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 attend because of professional obligations. But of course, we expect our directors 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 #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 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 Derennes. We want to grow the iconic brands, "the new unit Vantage of the Future [indiscernible] 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 his performance to justify such an appointment? Could that not create suspicion on part of financial analysts for the market.

Charlie Guillemot contributes a new look on the organization. He is modern and creative. He has a strong experience of the video game industry, both as a player himself and as a professional, having run a number of studios. He has good understanding of technological revolutions, in particular, generative AI and a strong entrepreneurial experience. He has launched a number of games. He has 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 Resynced, a major quantum leap compared to previous versions. And over the same period, Vantage Studios also had a significant improvement in the position of Rainbow Six as we mentioned earlier on. So his 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 #5, Vantage 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 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 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 #6, 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 standstill 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 #7, why this call option on the audiovisual option. Why can't this option be exercised at a net cost price or EUR 1 without 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 transfer 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 #8, Gerard Guillemot earned EUR 600,258 pretax as 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 Guillemot's compensation as CEO of the Film and Television business, which he has been running since 2017. 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 brand, 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 had 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 at loss with this previous centralized model. And then we recruited experienced leaders from the outside, in particular, Julien Bares, who was in the 2K China and Tencent and Christoph Hartmann, 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 Vantage 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, 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 and 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 Commerce 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 [indiscernible]. 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 "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 Montpellier 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.

[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 OCEANE 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 inaudible 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 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 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 two. 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 rebounds that we mentioned a minute ago. And for the moment, it's too early to give you any details about 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 two 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 two 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 two, 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 CACIB and JPMorgan for the period 2016, 2018 as part of the then defense plan. Since then, the EUR 9 million in derivatives were mostly unwound. If memory serves, EUR 6 million 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 two 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 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 Hexe 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 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 Thorn. 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 in 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]

That gives you a flavor of the exciting atmosphere in these competitions. This was the sixth invitational that actually took place here in Paris, and that enabled a large number of people to compete, but also many people to attend the competition. And there was another game there, Trackmania that was part of the world competition that was organized by another group. It was very successful because that was the one game that made it possible to to choose amongst the -- to select the winners of these competitions.

So you have an actions and sports type of game and then you have these games which also play a significant part in these things. Anyway, we'll now vote on the resolutions. And what you have in your hands is a little remote control. You vote by pressing a button on the box, on the device, and we'll vote and then we'll read out the results.

So on the screen, it tells you just how to use these devices pretty straightforward, and you have to make sure that there's a SIM card in there and then you vote yes -- vote for, against or abstain and then you press okay to finalize your decision.

All right. Resolution #1 is the approval of the separate financial statements for the financial year ended 31 March 2026. Please vote now.

[Voting]

[Interpreted] Voting is completed, and the resolution was adopted.

Number two, allocation of earnings for the financial year ended 31 March 2026. Please vote now.

[Voting]

[Interpreted] Right, time is up. And again, 99% in favor.

Resolution #3, approval of the consolidated financial statements for the financial year ended 31 March 2026. Please vote now.

[Voting]

[Interpreted] Time is up. And again, the resolution was carried.

Number four, approval of the auditor's report on related party agreements.

[Voting]

[Interpreted] Time is up, and it's approved.

Number five, approval of the components of compensation for corporate officers. Please vote now.

[Voting]

[Interpreted] Time is up. And we have adoption.

Number six is the approval of the compensation for 2026 of Mr. Yves Guillemot, CFO -- CEO, sorry.

[Voting]

[Interpreted] Time's up.

And so Resolution #7, approval of the compensation paid to Mr. Claude Guillemot, Deputy CEO. Please vote now.

[Voting]

[Interpreted] Time's up and resolution adopted.

#8, compensation of Michel Guillemot, Deputy CEO.

[Voting]

[Interpreted] Time's up. And we have adoption.

#9, compensation of Gerard Guillemot, Deputy CEO.

[Voting]

[Interpreted] Time's up, and the resolution was adopted.

We have #10, approval of the compensation of Mr. Christian Guillemot, another Deputy CEO.

[Voting]

[Interpreted] And time is up. And we have adoption as well.

And so Resolution #11, approval of the compensation policy applicable to the Chairman and CEO. Please vote now.

[Voting]

[Interpreted] Time is up. Resolution adopted.

#12, compensation policy applicable to the deputy CEO. Please vote now.

[Voting]

[Interpreted] Time is up. Adopted.

And #13 is compensation policy applicable to the directors. Please vote now.

[Voting]

[Interpreted] Resolution is adopted.

#14, authorization granted to the Board of Directors to trade in the company's shares. Please vote now.

[Voting]

[Interpreted] Time's up, and the resolution was carried.

We move on to Resolution #15, authorization granted to the Board of Directors in order to reduce the share capital by cancellation of the company's shares, treasury shares.

[Voting]

[Interpreted] Time's up, and we have adoption.

#16, delegation of authority to the Board of Directors to increase the share capital through the capitalization of reserves, profits, premiums or other amounts within 10% of the share capital. Please vote now.

[Voting]

[Interpreted] Time's up. And the resolution was carried. #17, delegation of authority of the Board to increase keeping the preferential subscription right within 50% of the share capital. Please vote now.

[Voting]

[Interpreted] Time is up. We have approval.

#18, on the increase of capital without preferential subscription right and priority time within 20% of the capital to a public tender. Please vote now.

[Voting]

[Interpreted] Time is up. And we have approval as well.

It takes us to #19 on the increase of the share capital by issuing shares without preferential rights by public offering. Please vote now.

[Voting]

[Interpreted] Time's up. And we have approval.

And now resolution #20 to increase share capital without preferential subscription rights restricted to one or more specifically named persons.

[Voting]

[Interpreted] Time's up. And the resolution was carried.

We have #21, contributions in kind to within 10% of the share capital. Please vote now.

[Voting]

[Interpreted] Time is up. And we have approval as well.

It takes us to #22, delegation of authority to the Board of Directors to increase the share capital by issuing ordinary shares for the benefit of members of the company or group savings schemes with waiver of preferential subscription rights. Please vote now.

[Voting]

[Interpreted] Time is up. And we have adoption as well.

We have #23 on the capital increase to the benefit of employees and corporate officers of foreign subsidiaries of the company, not within the corporate savings plan -- employee savings plans and without preferential subscription rights. Please vote now.

[Voting]

[Interpreted] Time is up. And we have approval.

And now #24, delegation of authority to increase share capital for reserve categories of beneficiaries under an employee share ownership scheme with waiver of preferential subscription rights. Please vote now.

[Voting]

[Interpreted] Time is up. And we have approval.

And now #25, authorization to the Board of Directors to run share subscription and purchase options to employees, not including the managing officers. Please vote now.

[Voting]

[Interpreted] And time is up. And we have adoption.

#26 is on the alignment of the Articles of Association with applicable legal provisions and/or regulations. Please vote now.

[Voting]

[Interpreted] And now the time is up. And the resolution was carried.

And then the final resolution, #27, simply powers for formalities. Please vote now.

[Voting]

[Interpreted] And time is up. And again, the resolution was adopted.

Right then. Well, thank you all. Thank you for turning up. I'd like to thank all Ubisoft employees who work day after day to create value. But I'd also like to thank gamers and indeed, the founders of this company that has made this company what it is today, and we'll keep doing it utmost to grow this company in this new exciting and fast-growing market. Many thanks, and the meeting stands adjourned. Thank you. And there will be -- you'll find refreshments outside the auditorium, you're invited. Thank you.

Good day, and thank you for standing by. Welcome to the Ubisoft Q1 Fiscal Year 2027 Sales Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Yves Guillemot, Ubisoft Co-Founder and Chief Executive Officer. Please go ahead.

Welcome, everyone, and thank you for joining the call today. We delivered first quarter net bookings slightly above our guidance, led by a record performance from Invincible Guarding the Globe.

The rest of the catalog, including Rainbow Six Siege performed in line with our expectations. We also continue to execute our transformation. This included further targeted rightsizing actions and the ongoing reconcentration of resources towards our highest potential opportunities.

At the same time, the leadership of our new operating model and organization continues to take shape, including the appointment of Christoph Hartmann, the lead creative out in building a world-class portfolio of battlefield-driven experiences.

These franchises include Ghost Recon, The Division, Splinter Cell and March of Giants. Christoph joins us with nearly 30 years of experience, building, scaling and operating global gaming organizations, having notably spent 20 years at Take-Two, where he supported the early releases in the Grand Theft Auto franchise and co-founded 2K games.

The strong launch of Assassin's Creed Black Flag Resynced by Vantage Studios in early July is an encouraging proof point.

The game is the highest rated Assassin's Creed title since the original Black Flag, and we are very pleased with the praise it has received from players.

Two weeks in, the title has already exceeded the annual expectation we had. I would like to warmly thank the teams whose talent and dedication brought it to life. This launch tells us 2 things. First, it's a reflection of the enduring strength of Assassin's Cree brand.

Second, it's an illustration of the early benefits of the ongoing transformation and commitment to deliver very high-quality experiences, notably enabled by the revamped cutting-edge proprietary engine and deal engine.

Finally, today, we have confirmed our financial year '26-'27 objectives and midterm outlook. Financial year '26-'27 remains a year of disciplined execution as we continue to implement our transformation, invest behind our strongest opportunities and prepare for significantly stronger content cycle.

We are confident this new operating model will strengthen our position as a leading creator of high-quality, memorable and engaging entertainment experiences and enable the group to return to a stronger trajectory of performance, cash generation and long-term value creation. With that, I will hand over the call to Frédérick. Frédérick?

Thank you, Yves, and hello, everybody. Our Q1 net bookings stood at EUR 256 million, down 9% year-on-year and slightly above guidance.

As I said, this outperformance was driven by a record quarter for Invincible: Guarding the Globe, while the rest of the catalog performed in line with expectations. The quarter included around EUR 15 million of pre shipments linked to Assassin's Creed Black Flag Resynced, in line with what we had planned for.

The year-on-year decline mainly reflects significant bookings from Assassin's Creek Shadows in the prior year quarter. You will recall that having been released on March 2025, Shadows had a significant contribution in the following quarter.

Back-catalog bookings and digital net bookings stood at respectively, EUR 220 million and EUR 206 million, down 15% and 18% year-on-year, both reflecting the Shadows impact I just highlighted.

PRI stood at EUR 151 million, stable year-on-year and representing 59% of our total net bookings. Let me now give you some color across the catalog.

Rainbow Six each performed in line with expectations this quarter. Your 11 Season 2 delivered one of our best battle pass conversion rates for a season without a new operator and the meta-driven rotating changes brought depth and variety to the experience.

Overall, average DAUs throughout the quarter were slightly up on the back of a comparison base that benefited from the launch of Siege X and its free entry point in June of last year.

Looking ahead, Season 3 will introduce a new ship counter defense operator, a highly requested edition and the Legends division, a new playlist targeting core competitive players.

Other live services titles were also supported by the regular rollout of new content. The Division 2 released year 8 Season 1 this quarter, which helped deliver improved monetization trends year-on-year, driven by virtual currency conversion and DARPU Records.

The Crew Motorfest benefited from the NASCAR-themed Season 9 that released in March as well as the RC Frenzy Playlist and the inclusion in the PS+ subscription service, which all drove robust year-on-year growth in active users and session days.

Finally, mobile bookings stood at EUR 48 million, significantly up year-on-year, reflecting a standout performance for Invincible: Guarding the Globe, developed by Ubisoft Barcelona mobile studio.

The title exceeded expectations this quarter, 2 years after launch, already surpassing the prior full fiscal year.

Momentum built through the period, thanks to the March release of the TV series fourth season and the introduction of a new in-game character, which together drove meaningful player acquisition, retention and monetization.

Now turning to the lineup. Assassin's Creed Black Flag Resynced released on July 9, and as I said, is off to a strong start. It sold in 3.5 million copies to date, exceeding annual expectation within its first 14 days.

The game is praised by critics and players alike with a current 84 review score on Metacritic and OpenCritic, making it the highest rated Assassin's Creed game since the launch of the original Assassin's Creed IV Black Flag in 2013.

Following launch, player sentiment continued to strengthen and the game showed robust player engagement with a record performance for the franchise on PC as it reached a peak of around 105,000 concurrent players on team, the highest ever recorded for an Assassin's Creed title on this platform.

This translated into a historical proportion of sales for the franchise on PC, led by the U.S. and Chinese markets.

We think demonstrates Ubisoft's ability to leverage proven catalog brands for remakes to win over a whole new generation of players while allowing long-time fans to rediscover a well-improved iconic games.

In the same spirit, we revealed Rayman Legends Retold to be released in October, making the franchise 30th anniversary. Early hands-on coverage has been encouraging with press highlighting the new visuals and cinematics, expanded worldbuildings and new gameplay additions that build on the original celebrated foundation.

This premium remake, co-led by Ubisoft Montpellier and Milan, reimagined the acclaimed platformer in full 3D, deepen its world and introduces fresh gameplay ideas while preserving the original DNA.

On top of these 2 games, the lineup for the rest of the fiscal year also includes Just Dance's Decades of Hits, scheduled to release on October 13, as well as targeted premium titles based on established Ubisoft brands to be announced at a later stage on top of continued Live Services content updates across the portfolio.

August will be an important month for Rainbow Six Siege and Trackmania, which will be represented at the Esport World Cup in Paris, bringing together some of the best players in the world and showcasing our brands on one of the biggest stages in Esports.

We also continue to execute on our cost reduction initiatives. In June, we announced the closure of the Winnipeg and Belgrade studios, targeted changes across the Group's Global Publishing organization and the restructuring at the Ubisoft Barcelona HD Studio.

These are difficult decisions, but necessary steps as we concentrate our resources on our highest priority projects and further improve quality delivery to exceptional levels in a consistent manner.

Turning to the outlook. We've confirmed our fiscal '27 guidance today and continue to expect net bookings down by a high single-digit percentage, a high single-digit negative non-IFRS operating margin and free cash flow consumption of no more than EUR 500 million.

Additionally, the fiscal '27 housekeeping items for modeling purposes I provided during the full year earnings call mid-May are unchanged.

On the balance sheet, as we said back in May, we have sufficient liquidity to address the near-term maturity using cash on hand. We are reviewing available financing options with the objective of addressing upcoming maturities, extending the group's debt profile and maintaining financial flexibility.

This review is actively progressing with a way to executing the most efficient financing scheme in due course. Beyond fiscal year '27, we expect an important rebound with a return to positive free cash flow generation and non-IFRS EBIT in fiscal year '28, robust free cash flow in fiscal '29 and positive cumulative free cash flow during the fiscal '27 to fiscal '29 period.

Finally, we expect Q2 net bookings of around EUR 370 million, keeping in mind that Q2 of last year included significant partnerships, while we only factored in for a limited impact in this Q2 guidance. I'd like to hand over the call to Yves for concluding remarks.

Thank you, Frédérick. Before we close the call, I would like to take a moment to sincerely thank everyone for their outpouring of support following the tragic death of my brother, Claude.

As many of you know, Claude co-founded Ubisoft alongside Christian, Gerard, Michel and me.

He played a key role in building Ubisoft and its iconic brands. He also was always genuine and generous, sharing his kindness, wisdom, optimism and energy with everyone he met. He will be dearly missed. Thank you again for your support. We are now ready to take your questions.

[Operator Instructions] And your first question today comes from the line of Nick Dempsey from Barclays.

I've got 2 questions, please. So first of all, can you talk about the likely margin profile of a game like Assassin's Creed Black Flag Resynced, so a remake that has sold well ahead of your expectations.

Can you tell us whether you've already covered your costs for that game and whether it should make a better contribution to non-IFRS operating income than a typical game? Second question, I heard your comments on the debt refinancing. Can you maybe give us an indication of when you will be able to communicate to the market when you have a plan in place to address the financing of those debt maturities, particularly the puttable 2028 converts due in November?

So yes, the margin profile of a game like Assassin's Creed Black Flag Resynced should be attractive.

First, because it's planned to be a success with a strong start. Usually for remakes that are ambitious, you have a reuse of the existing assets of the original experience, but you also come with additional game play and features.

So that still come with some investments. But of course, the overall budget is not as high as the original experience. You also benefit from the awareness of the game, so you can come with lower marketing, but you don't have the same price as a full game.

So it's really a different economic profile, but we expect this one to deliver superior financial performance. We should expect the direct contribution to be positive as soon as this current quarter in cumulative terms.

In terms of refinancing, as we said, we are looking at different options. So we won't make any more announcements today. But we have a high cash position as we speak.

So as we said back in May and in February, we can use it to address any near-term maturity. And we are looking at different options to work the upcoming maturities with the objective to really optimize the cost of capital. So that's what we can say at this stage, and we will update the market in due time.

Our next question today comes from the line of Nicolas Langlet from BNP Paribas.

I've got 2 questions, please. First, you said that Assassin's Black Flag Resynced already reached the annual performance expected for the game, but you reiterate the guidance.

So are there other parts of the portfolio which are not performing as well as expected or you want to keep some room of maneuver for the rest of the year? And secondly, on the licensing and partnership deals, can you remind us what you expect for the full year? And what's the expected phasing by quarter? And notably, were there any specific contribution during the Q1?

Nicolas. So on the -- yes, we said indeed that we're very happy with the strong start that exceeded in only 2 weeks the annual expectation that we had. It's still early in the year with 9 months ahead of us.

And we have, of course, still a number of games to come in the second half. We also have a strong competitive lineup to come this year. So it's a bit early to update the guidance. That's what I would say at this stage.

In terms of partnerships, so for the whole year, we expect a material contribution, but lower than over the last years. We had a limited contribution in Q1.

It was below EUR 10 million, probably around EUR 5 million. We factored in, as I said, a limited contribution in the second quarter. So the material contribution is expected in the second half of the year.

[Operator Instructions] And our next question today comes from the line of Aleksander Peterc from Bernstein.

I'd just like to circle back to your guidance. If Black Flag Resynced is doing so much better than you had originally expected, I'm a little bit surprised still to see the second quarter guidance coming in a fair bit below consensus.

So maybe you can just put everything together for me and perhaps the explanation is lower partnerships in the first half and that includes the second quarter. Is that the reason why? And then should we, as a result, view your full year guidance as being conservative because if Black Flag is doing much better and the rest of Ubisoft is performing in line with expectations, then I expect you have some margin on the upside to your full year guide.

Yes. So as I said, we're very happy with the start. As for the second quarter guidance, I think it clearly reflects the early success of these first 2 weeks.

Yes, in terms of comparison versus with last year's second quarter, last year, we had a meaningful impact of partnerships, while we have a limited one this quarter. So that's a big part of the explanation comparing with last year's Q2.

But I don't know what are the assumptions that were used in the consensus. For the full fiscal year, as I said, while it's really a great start, it's still early.

As we said, we will be announcing additional games to be launched in the second half on top of the Rayman Legends Retold remake already announced.

And we expect also a strong competitive lineup. So it's a bit early to update the guidance. For you to know, we also had EUR 15 million net bookings per shipment in the first quarter to keep in mind when you analyze the second quarter guidance.

That's very clear. Can I just have a very quick follow-up? Is there any chance that your Rayman remake will be as successful as the Black Flag one? Or is it a totally different animal?

Yes. I would say that, first of all, of course, Assassin's Creed is a very, very big brand, so you need to take into consideration the relative size of the brand, but Rayman Legends is really an iconic game.

So it's the same spirit in the way we consider Rayman Legends and Assassin's Creed Black Flag relative to, in both cases, iconic original games.

And as for AC, we are coming with a revamped experience, an improved experience while sticking to the original DNA of Rayman, but with additional gameplay features, a broader scope and a full revamp in 3D.

So what we've seen from hands-on coverage today is really encouraging.

So we believe that, yes, a long-time fans will be very happy to rediscover that improved version of the original experience, and we should be attracting a whole new generation of players.

And the next question today comes from the line of Doug Creutz from TD Cowen.

Sony recently announced that they're going to discontinue physical disk-based games as of 2028.

Just wondering from your perspective, if you have any concerns that could create a demand headwind either directly or perhaps indirectly because it prevents gamers from recycling games to the used game market and then using that to purchase new games.

What we saw on the PC is that it helped to grow the market. There's also some pressure for the future on the cost of machines and being able to be only digital will help to have a more accessible machine, I would say.

So as you said, there are plus and minus. but we think it will not disturb too much the industry.

Thank you. There are currently no further questions. I will hand the call back to you, Yves, for any final remarks.

Okay. Thank you very much for all your questions, and have a good day or good evening. Thank you.

Bye-bye.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

Welcome, everyone, and thank you for joining the call today. This past fiscal year was one of decisive actions for Ubisoft. We initiated one of the most ambitious transformations in the company history, building a more focused, agile and disciplined organization that is capable of consistently delivering high-quality experiences to players through a sustained release cadence while supporting value creation over time.

To achieve this strategic resets in financial year '26, we began putting in place a new operating model, rationalized our portfolio of games and executed with discipline on our cost reduction program while significantly deleveraging the group. In financial year '27, we will pursue and complete the execution of this transformation and continue investment ahead of much stronger and sustained content cycle.

This year is therefore expected to represent a low point in our free cash flow trajectory, along with a softer release slate and restructuring costs.

We will continue to grow our live games led by Rainbow Six and its strong road map, deliver Assassin's Creed Black Flag Resynced and launch other targeted premium games based on established Ubisoft brands. This 2-year transformation comes with difficult decisions and a disappointing short-term financial performance, but I firmly believe that together, these actions are better positioning Ubisoft to deliver sustainable free cash flow over time.

The expected outcome beyond financial year '27 will be an important rebound driven by a significantly stronger new release pipeline, the acceleration of our live games and the continued reduction of our fixed cost base with free cash flow turning positive in financial year '28 and reaching a robust level in financial year '29.

Overall, we expect to generate positive cumulative free cash flow through financial year '27 to financial year '29 period. In this context, with a comfortable liquidity position, the review of our financing options is actively progressing with the objective of executing the most efficient financing scheme in due course.

I will now let Frédérick detail our financial performance this year.

Thank you, Yves, and hello, everybody. Overall, full year net bookings for the year stood at EUR 1.525 billion, down 17% year-on-year, primarily reflecting a softer new release schedule. Back catalog was robust this year, broadly stable year-on-year, highlighting once again the strength and attractiveness of the group's portfolio of franchises. The group reached 36 million MAUs and 129 million unique users across console and PC, stable when excluding XDefiant from the base. In Q4, net bookings stood at EUR 415 million, EUR 25 million above guidance, driven by better-than-expected back-catalog performances across the group's major franchises and MAUs were slightly up year-on-year.

Net bookings were down 54% year-on-year, reflecting a higher -- a high comparison base that included the release of Assassin's Creed Shadows and significantly higher partnerships. For its part, back catalog net bookings stood at EUR 243 million this quarter, down mid-single-digit, excluding partnerships. Rainbow Six Siege delivered a solid quarter with activity and engagement trends significantly improving sequentially. Session days remained stable year-on-year while peak DAUs in March increased year-on-year and nearly 3x higher than in early November, reaching the second highest level since March 2020. MAUs were clearly above 10 million in March and up double digits year-on-year, reflecting a meaningful reengagement of the player base and closing the year with an annual audience growing low double digits and above 30 million unique active players.

The Year 11 has been praised by players, showcasing significant community-driven content for the year ahead and reflecting the team's sustained effort to address player feedback over the recent months.

The Division 2 saw net bookings outperform in the quarter, and more than double year-on-year this fiscal year, supported by the 10-year anniversary of the franchise, roadmap updates and continued strong live services execution. The anniversary season and the limited time Realism mode drove meaningful player engagement growth and led to a record quarter in terms of monetization for the game thanks to audience growth as well as structural improvement in terms of retention and conversion. The performance highlights the team's continued focus on evolving the player experience over time.

The Assassin's Creed franchise also posted a strong performance this quarter, outperforming and delivering year-on-year engagement growth, closing the year with an annual audience above 30 million unique active players.

Avatar: Frontiers of Pandora continued to benefit from momentum generated by the third-person update, the latest expansion and the theatrical release of the Avatar film in the prior quarter, delivering very strong year-on-year net booking growth, both in the quarter and over the fiscal year.

The Crew Motorfest reached record quarterly users on the back of a robust content pipeline, including the NASCAR-themed season and the release of Trackforge, a new UGC feature enabling players to build their own racing circuits.

For Honor saw net bookings grow double-digit this quarter, supported by the launch of Year 10, Cycle of War that led to solid audience and engagement growth. The new seasonal content roadmap, gameplay updates and anniversary celebrations highlighted the franchise's long-term durability and reflected the team's continued live execution nearly 10 years after release.

Total digital net bookings and PRI stood at EUR 390 million and EUR 301 million, respectively, both down year-on-year, reflecting a strong comparison base linked to the release of Assassin's Creed Shadows in March last year and a higher level of partnerships. Mobile stood at EUR 29 million, up mid-single digit year-on-year, excluding partnerships. The quarter saw the release of Rainbow Six Mobile and The Division Resurgence.

Both games were welcomed by players for their faithful gameplay experiences. And while the game had a slow start, the teams are working towards broadening their respective audiences.

This quarter, Invincible: Guarding the Globe benefited from the release of the new TV series, driving a significant uplift in player activity throughout March and reaching record activity levels in early fiscal '27. Overall, its net bookings were up over 50% this fiscal year.

Stepping back and as mentioned previously, this fiscal year has been marked by a major organizational portfolio and financial reset. These deliberate choices result in short-term painful, but necessary financial outcomes both in fiscal year '26 and fiscal '27 ahead of a significant rebound expected in fiscal '28 and fiscal '29.

Starting with fiscal '26, you will find our non-IFRS P&L on Slide 6 of our presentation. Gross margin was stable year-on-year. R&D this year reflected the EUR 650 million accelerated depreciation we announced in January linked to the transformation-related decisions we took across our portfolio of games. It also reflects incremental depreciation, notably linked to the decision not to discontinue the development of a game based on the new IP that has been announced as delayed in our January communication.

I will provide more details on the R&D topic on the following slide. SG&A was down 13%, mainly reflecting lower variable marketing expenses due to a softer new release slate this year. As a result, non-IFRS EBIT stood at EUR 1.040 billion, broadly in line with our objective of around EUR 1 billion. You can refer to our press release or presentation appendix for the full IFRS to non-IFRS reconciliation.

Turning now to Slide 7. P&L R&D stood at EUR 1.086 billion this year -- EUR 1.086 billion, up significantly year-on-year, reflecting the accelerated depreciation we announced in January linked to the strategic decisions to refocus our portfolio and revise our roadmap in order to ensure enhanced quality benchmarks are fully met.

For its part, total cash R&D was down EUR 151 million or 12% year-on-year, reflecting our continued efforts addressing our fixed cost base and the refocused roadmap. This year's reduction is in capitalized investments that will flow through the P&L over the coming years amounted to EUR 156 million.

Looking at our cash flow statement on Slide 8, free cash flow consumption stood at EUR 443 million, in line with our updated target range of between EUR 400 million and EUR 500 million. The free cash flow consumption reflects the softer release slate, which resulted in lower gross profit generation, while we continue investing ahead of a significantly stronger content pipeline in fiscal year '28 and fiscal year '29.

Turning to the balance sheet. Non-IFRS net debt improved materially to EUR 187 million at end March 2026 compared to -- compared with EUR 885 million a year earlier, reflecting the cash inflows of the investments into Vantage Studios. Cash and cash equivalents remained at a comfortable level of around EUR 1.35 billion.

Let me now turn to an update on the group transformation. Following the comprehensive transformation we announced in January, a reset centered on a new operating model, a refocused portfolio and right-sized organization, Ubisoft is now firmly in the execution phase with tangible progress across all pillars. A key milestone with the creation of Vantage Studios alongside the closing of the EUR 1.16 billion Tencent transaction, strengthening our balance sheet and enhancing our financial flexibility to support the group's transformation.

From an organizational standpoint, the recently appointed co-CEOs of Vantage Studios established a new dedicated leadership team for the Assassin's Creed franchise, bringing clear mandates and creative accountability to our most iconic brands. We also appointed Nicolo Laurent as a strategic adviser, bringing extensive experience building and operating globally successful competitive and live games, further strengthening Vantage Studios capabilities in this strategic segment.

At the same time, we are rolling out our new structure, with key leadership appointments across Creative Houses 3 and 5 and the Creative Network, while finalizing the leadership team for Creative House 2.

Julien Bares appointed as General Manager of Creative Houses 3 and 5 brings more than 25 years of extensive experience in the video game industry in leadership roles across AAA production and live operations, including more than 20 years in China.

In a selective market environment, this new operating model has gone hand-in-hand with stricter portfolio discipline. We have discontinued 7 projects and delayed 6 others, reflecting elevated quality criteria and a refocus on the opportunities with the highest potential.

This discipline is already translating into higher quality standards as reflected in recent releases such as Assassin's Creed Shadows, Anno 117: Pax Romana and the Avatar: Frontiers of Pandora expansion, each achieving Metacritic scores above 80.

Finally, we are leveraging AI to enhance the player experience and boost creativity and efficiency across our teams. We are accelerating investment behind Teammates, our first label generative AI experience to enrich player experiences as well as making tangible progress organically on applications to help manage the growing complexity of modern game development pipelines. This includes building more intelligent tools supporting quality control as well as smart NPCs and more active game worlds.

By combining decades of expertise in open worlds and systemic gameplay with the pioneering work of our La Forge R&D teams, we are confident in our ability to remain at the forefront of this transformation and provide our teams with tools to enhance their creativity.

We've also made good progress on our cost reduction program and the rightsizing of the organization, which remains a key priority for us. We have completed the second phase of our cost reduction program one year ahead of the initial schedule and the growth targets, highlighting continued discipline and strong execution.

Total headcount stood at 16,590 at the end of March 2026, down by around 1,200 employees versus last year while maintaining voluntary attrition close to our record low levels, particularly among senior profiles and strengthening the talent base, thanks to the return of 155 former Ubisoft top talents.

Our fixed cost base has been reduced by EUR 118 million versus last year or 8% at current foreign exchange rates, including a favorable EUR 39 million currency impact. Overall, the fiscal '26 fixed cost base stood at around EUR 1.435 billion. We accumulated fixed cost savings since fiscal '23 of nearly EUR 325 million.

Looking ahead, we have a clear path to completing the third and final phase of our cost reduction program, targeting a fixed cost base of EUR 1.25 billion on a run rate basis by March 2028, supported by continued discipline in recruitment and targeted restructuring. We also continue to consider potential asset divestitures.

Now let's have a look at fiscal year '27 and beyond. Our lineup for fiscal '27 is light and reflects our strategic decisions that Yves detailed earlier impacting our release slate. We will launch Assassin's Creed Black Flag Resynced and other targeted premium games as well as continue to grow our live services.

Assassin's Creed Black Flag Resynced, a faithful remake of Assassin's Creed IV Black Flag that was originally released in 2013, is led by Ubisoft Singapore and scheduled for release on July 9, 2026. Rebuilt from the ground up using the latest version of the Anvil engine, the game introduces substantial visual enhancements alongside enriched gameplay systems, including updated combat, stealth, parkour, naval mechanics and narrative content.

The reveal generated strong engagement across the Assassin's Creed community, with players praising the game's modernized presentation and expanded gameplay features while recognizing its faithfulness to the original experience. We are encouraged by the early preorder momentum that has been particularly strong notably in China, ranking among the franchise's best performances over the first three weeks with the collector edition sold out and a very high share of premium SKUs.

The fiscal year will benefit from continued investment across our live services portfolio. Rainbow Six Siege is expected to return to solid net bookings growth thanks to an ambitious, community-driven content roadmap for its Year 11, with the release of numerous highly anticipated features, including Ranked 3.0 and Meta-driven gameplay that brings freshness to the experience.

The Salt Lake City Major last week further underscored the game's competitive appeal, setting a new record for a Major event viewership. The Division 2 will also continue to expand through its Year 8 roadmap, featuring 4 seasonal updates, a new DLC set in New York and additional content for players as well as introduce The Division 2 Survivors, a new game experience.

Lastly, I would like to mention the opening of Heroes of Might and Magic: Olden Era last month in early access on PC, marking the return of the long-running franchise for a modernized strategy RPG experience. The title developed by Unfrozen and published by Hooded Horse generated very positive community engagement and achieved 88% positive user ratings on Steam to date, demonstrating the strength of the Might and Magic brand. This also illustrates our capacity to leverage and monetize the strength of our IP portfolio across multiple genres and audiences, both directly or through partners.

As we marked the 30-year anniversary of the brand, the highly promising early results of Heroes of Might and Magic: Olden Era reflect and reinforce a broader renewed ambition for the franchise and its community. In this context, we expect the following fiscal '27 outlook. Net bookings down by a single-digit percentage, driven by lower partnerships, a high single-digit negative non-IFRS operating margin and free cash flow consumption of no more than EUR 500 million.

The negative non-IFRS EBIT and free cash flow consumption expected this year reflect the ongoing transformation we're currently going through ahead of a strong cash-generative growth cycle. For Q1, we expect net bookings to stand at approximately EUR 250 million, reflecting the fact that we don't have any significant new release this quarter.

Beyond fiscal '27, we expect a much larger and diversified pipeline of content to come over fiscal '28 and fiscal '29, supported by releases across our major brands, including Assassin's Creed, Far Cry and Ghost Recon supported by the stronger release schedule as well as an acceleration of our live services driven by Rainbow Six Siege, our refocused portfolio and the continued reduction of our fixed cost base, we expect an important rebound with a return to positive free cash flow generation and non-IFRS EBIT in fiscal year '28, robust free cash flow in fiscal year '29 and positive cumulative free cash flow during the fiscal '27 to fiscal '29 period.

To conclude, here are a few fiscal '27 housekeeping items for modeling purposes. The stock-based compensation is expected at around EUR 25 million, a significant decrease versus last year, reflecting the current share price. The non-IFRS net financial charge, excluding foreign exchange impact, is expected at around EUR 38 million.

Assuming full exercise of the 2028 convertible bond put options, the interest savings from the 2025 repayments are absorbed by the convertible bond redemption premium and lower financial income expected for the year. The non-IFRS tax rate is not relevant in the context of breakeven non-IFRS operating income. And the number of diluted shares is expected at around 133 million reflecting the fact that with an expected negative net income, the dilutive nature of our instruments no longer kicks in. I will now hand the call over to Yves for the concluding remarks.

Thank you, Frédérick. What makes me confident in the success of this transformation is the very high quality of the leadership that we are putting in place across the whole organization along with a reinforced and streamlined talent base. Our ambition remains clear, reinforce Ubisoft's position as one of the industry leading creator of high-quality, memorable and engaging entertainment experiences that resonate with players over the long term by combining creative focus, the latest innovative technologies, reinforced talent base and a commitment to enhance quality. We believe we have the assets and brands to return to profitable growth, robust free cash flow generation and a strengthened capital structure. We are now ready to take your questions.

[Operator Instructions]

Our first question comes from the line of Nick Dempsey from Barclays.

I've got a few. So first of all, on your planned debt refinancing, can you give us a bit more color about the kinds of partners that you might look to work with on this or anything else that can give the market some reassurance that a solution here is imminent? Is it fair to say that you need to come out with a solution in the next couple of months for this to all work?

Second question, in terms of your plan to have positive cumulative free cash flow across FY '27, FY '28 and FY '29 with only positive free cash flow in FY '28, I'm guessing that looks like you need at least EUR 400 million of positive free cash flow in FY '29, which I think would be the highest in your history. Do you plan to have a particularly strong release schedule in that year? Or how often could you get to that kind of level? And last question, can you tell us roughly how much the cash restructuring charges that you're expecting to book in FY '27 now?

Thank you, Nick. So on the refinancing, our process review is actively progressing. We are considering several different options with the objective to optimize our cost of capital. Today, we have sufficient liquidity to address the near-term maturity using cash on hand is needed. And we enjoy comfortable cash and cash equivalent position of above EUR 1.3 billion. So that provides us with the flexibility to evaluate the most efficient financing solution for the medium to longer term. And we will update the market in due time.

In terms of the outlook for free cash flows across fiscal '28 and fiscal '29, yes, we expect positive in fiscal '28 and really robust free cash flow in fiscal '29 on the back of a very strong pipeline of products across the 2 years, the recent portfolio review that we conducted, it gave us an even stronger level of visibility for a very rich pipeline, including our major franchises and notably Assassin's Creed, Far Cry and Ghost Recon on top of a very strong roadmap from Rainbow Six Siege among other items. So yes, the perspective is very positive for fiscal '28 and even more so in fiscal year '29.

In terms of the restructuring costs, if you think about the 2-year cost reduction program was nearly around EUR 118 million. You should consider that the restructuring costs to between 50% to 60% of that amount, and we expect the majority of this coming in fiscal '27.

And our next question today comes from the line of Nicolas Langlet from BNP Paribas.

I've got three questions. The first one on the full year '27 net booking guidance. So what's the year-on-year impact coming from the lower licensing and partnership deals? Or the other way, if you exclude those partnership licensing deals, what would be the expected net booking for full year '27? Secondly, on Assassin's Creed Resynced. Curious what your internal expectation relative to other Assassin's Creed titles. You think the total booking performance during the first year to be comparable to [indiscernible] or it could actually approach a full scale [indiscernible]. And finally, on the debt repayments, you mentioned the [ soft ] 70 million convertible bond. Can you remind us if there are other repayment both in full year '27 and full year '28?

So in fiscal '27, yes, the reduction in overall net bookings is driven by our partnerships. So excluding partnerships, you can consider we'll be growing. In terms of Assassin's Creed Resynced, as I said, we are very happy with the preorders momentum that ranks among the best titles in the franchise for the first 3 weeks. Of course, there is still 7 weeks to go. So we'll see how the momentum will continue building up, but we are happy and confident that it will be a really successful Assassin's Creed title because it's faithful to the experience, but it also comes with many improvements to the original experience that players have liked when they've seen the first showcase of the game.

In terms -- now keeping in mind that it's not a full price type of game. Now in terms of debt repayments, so we have in fiscal '27 -- in 2027, we expect a maturity of slightly below EUR 700 million. So that will come after the maturity coming this year in 2026 or slightly below EUR 500 million if the convertible bond put is exercised. And then in fiscal year '29 if the second adoption of the convertible bond is exercised, that would be another EUR 500 million. So calendar year 2029 to be precise.

Okay, okay. And last question. On the Vantage Studio minority interest, are you able to quantify what we should expect in full year '27? And can you confirm that there will be a minority line related to Vantage Studio in full year '27?

Can we confirm there will be what, sorry, Nicolas?

Minority interest line related to Vantage Studio?

Yes. Yes. There will be, of course.

Can you guide on the magnitude of the potential minority interest?

No, we don't guide on this for now.

And our next question today comes from the line of Doug Creutz from TD Cowen.

I was wondering if you could just talk a bit more about your experience with Rainbow Six Mobile and The Division Resurgence to date, how they're doing relative to your expectations? Do you expect them to be meaningful contributors to revenue in fiscal '27? And how has your experience sort of shaped how you're thinking about your investments in mobile going forward?

Yes. Thank you, Doug. So what we've seen with both launches is that they've been very well received by the players with high community sentiment, praising the quality of the game-play and the faithfulness to the original experience. We can qualify at the start as being slower than expected in both cases. But we see that there are a number of good features that we can bring to those games to progressively grow the audience and performance for fiscal '27, we remain cautious on the forecast for both games until we can see more meaningful growth.

Thank you. This concludes the Q&A session for today. I will now hand back to you for closing remarks.

Thank you very much for your questions, and have a good evening.

Good day, and thank you for standing by. Welcome to the Ubisoft Q3 Fiscal Year 2026 Sales Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Yves Guillemot, Ubisoft's Co-Founder and Chief Executive Officer. Please go ahead.

Welcome, everyone, and thank you for joining the call today. We delivered a solid third quarter performance with net bookings growing at a double-digit rate year-on-year, exceeding our expectations. This performance reflects the strength of our portfolio and the breadth of our player engagement across our core franchises, supported by recent releases and live content updates that continue to resonate with players.

In parallel, we are making progress on the transformation announced last month. The allocation of studios and capabilities across the creative houses and network has now been announced and key leadership appointments are ongoing, including external hires of experienced respected industry veterans. This transformation is designed to sharpen focus, accelerate decision-making and elevate our creative ambition in an increasingly selective market. Vantage Studios has been operating since October, and we are preparing for the rest of this new operating model to start running in early April.

As we move into this execution phase, our financial position and available cash provides the flexibility needed to address this near-term maturity. While we continue to work on extending our debt profile. This allows us to remain focused on delivering the transformation and creating the conditions for our creative houses to fully deliver on the significant pipeline of exceptional high-quality games we will have within the next 3 years. Importantly, this transformation is supported by the strongly improved retention and reinforced talent pool, thanks to the return of numerous skilled former Ubisoft employees in our studios over the recent years.

Now I will transfer the call to Fr�d�rick.

Thank you, Yves, and hello, everybody. Over the first 9 months of the year, net bookings stood at EUR 1.1 billion, up 18% year-on-year, driven by the strength of our catalog of brands. Assassin's Creed and The Division both delivered nearly double net bookings over the period, while Anno posted a fourfold increase in net bookings and Avatar grew by around 20%. These 4 brands were also key drivers of the 12% year-on-year growth over Q3.

In terms of activity metrics, the group's brands attracted around 130 million unique active users across console and PC in calendar year 2025, highlighting the appeal and strength of our portfolio of franchises. MAUs in Q3 reached 34 million, stable year-on-year, with activity metrics improving throughout the quarter. In December, MAUs were up 3% year-on-year. Our Q3 net bookings reached EUR 338 million, 11% above guidance. This overperformance was primarily driven by partnerships and the Assassin's Creed franchise.

On the new release side, Anno 117: Pax Romana developed by our main studio had a solid start with an 84 Metacritic and net bookings outpacing those of Anno 1800 on a comparable time frame. The game has been well received by players and critics supported by its unique take on the iconic Roman setting and new gameplay features such as the skill tree. Looking ahead, while Anno 1800 continues to be a strong seller, Anno 117: Pax Romana will build on its post launch roadmap with the first DLC, Prophecies of ASH scheduled to release in April and introducing a large new island to discover.

On the back-catalog side, net bookings reached EUR 297 million, up 11% year-over-year. Avatar: Frontiers of Pandora posted a solid performance this quarter, benefiting from the release of the high quality From the Ashes expansion, developed in our Massive studio that launched alongside the Avatar: Fire and Ash movie. This content with an 81 Metacritic score supported growth in player engagement with session days nearly doubling year-on-year as well as growth in player acquisition and monetization. Performance was further underpinned by targeted gameplay enhancement, including the highly anticipated introduction of a third-person view, broadening the player experience and positioning the game as a long-term seller.

This quarter's competitive first-person shooter market was particularly crowded. In this context, Tom Clancy's Rainbow Six Siege performed in line with expectations. The title saw improving activity and engagement trends in December with MAUs up year-on-year and DAUs back on a positive momentum. By early January, DAUs were more than double where they stood early November, supported by the progress in addressing player feedback related to balancing and cheating. The Assassin's Creed brand overperformed this quarter and saw solid activity metrics with session days up 7% quarter-on-quarter and 28% year-on-year.

Overall, the brand saw double-digit year-on-year growth in active users, underlining the strength and durability of the franchise. The quarter notably saw the release of Assassin's Creed Shadows on Switch 2, enabling the title to broaden its audience as well as the high-quality value of memory update for Assassin's Creed Mirage. The Division to continue to grow meaningfully across active players, engagement and revenue. This performance was driven by a strong slate of live events and the launch of a new season in December. Total digital net bookings reached EUR 256 million, stable year-on-year and represented 76% of our total net bookings. PRI stood at EUR 148 million, up 3% year-on-year and represented 44% of our total net bookings. Mobile amounted to EUR 25 million, down versus last year.

Now turning to the group's transformation and bidding on what Yves just mentioned, we have made good progress over the past few weeks. We have provided the breakdown of studios by Creative Houses and Network that is detailed in today's press release. Additionally, as we prepare for this new organization to start operating in April, appointments of Creative Houses key leadership will start in March and include industry veterans with a proven track record. In line with our ambition to reshape the HQ into a leaner and focused organization, consultations with employee representatives has initiated regarding the objective to reduce headcount at Ubisoft headquarters in France by 200 positions through a voluntary departure plan. These measures are intended to support a more agile organization and reinforce our ability to deliver sustainable and profitable growth.

Let me turn to a few key highlights from the quarter. First, as you know, we completed the transaction with Tencent, securing EUR 1.16 billion cash investment. The proceeds from the transaction has strengthened our balance sheet and provide increased financial flexibility to support the acceleration of our transformation while being fully available to address upcoming debt maturities. Second, in November, we unveiled Teammates, our first label player-facing generative AI experience. Building on the Neo NPC initiative, the prototype explores new forms of adaptive gameplay, with AI-driven characters capable of understanding and reacting to players in real time. The experience also serves as a testbed for the underlying technology, reinforcing our long-term strategy to enhance interactivity and creative tools for development teams. The announcement received positive media coverage, with DigitalTrends describing it as "Ubisoft's AI experiments that could be gaming's biggest leap in decades".

Third, in December, we acquired the rights to March of Giants from Amazon for a nominal amount. Following a successful closed alpha, this acquisition enables us to enter in the MOBA genre, one of the biggest and most engagement segments of the industry, with a game that is fully aligned with our Game-as-a-Service native pillar of our strategy. The March of Giants team led by veteran developers of Ubisoft that created Rainbow Six Siege brings proven expertise in building and operating globally successful competitive and live games, strengthening our internal capabilities in this segment.

And fourth, in January, we announced the appointment of Valentine Piedelievre-Eman as Chief Communication Officer. She brings extensive experience across entertainment and technology in the international organization, including most recently at Warner Bros. Discovery.

Finally, turning to the outlook. We have confirmed today our fiscal '26 guidance. We expect net bookings of around EUR 1.5 million, non-IFRS EBIT of around minus EUR 1 billion, free cash flow of between minus EUR 400 million and minus EUR 500 million, non-IFRS net debt of between EUR 150 million and EUR 250 million. This translates into an expected consolidated cash and cash equivalents position at end March 2026 of between EUR 1.25 billion and EUR 1.35 billion that is fully available to service our debt maturities. Our liquidity position provides flexibility to address the near-term maturity using cash on hand, and we are actively exploring several options to extend our debt maturity profile.

The lineup for Q4 includes Rainbow Six Mobile and The Division Resurgence. Rainbow Six Mobile developed by the Montr�al studio that created Rainbow Six Siege, brings the that Siege experience to mobile, combining tactical depths with fast-paced action while integrating gameplay features specifically designed for mobile users. The title that will expand the brand's audience has generated strong early momentum, with more than 18 million pre-registrations to date. Following a successful soft launch in LatAm, Canada, France and Poland, Rainbow Six Mobile is scheduled for worldwide release on February 23, with a strong content roadmap, including recurring challenges, limited-time playlists and events as well as the monthly release of a new season, supporting sustained player engagement.

Following a solid Q3, Rainbow Six Siege saw MAUs grow mid-single digit in January. The game will also benefit from the Six Invitational that is taking place in Paris this week, where the franchise will present the Year 11 roadmap, highlighting increased investments in player protection and the delivery of community-driven content to support sustained engagement and growth. The Division Resurgence developed by Ubisoft Mobile Games in Paris was confirmed as a faithful mobile adaptation of the long-running and successful Division franchise following the latest series of live test in Q3. The game is planned to release in Q4, and we'll be taking part in the franchise's 10th anniversary celebrations in March, but we also featured the launch of a new game mode in The Division 2 alongside the reveal of an ambitious roadmap for the coming year.

And as always, here are a few fiscal '26 housekeeping items for modeling purposes. The stock-based compensation is expected at around EUR 32 million, unchanged versus prior guidance. The non-IFRS net financial charge is expected at around EUR 45 million, unchanged versus prior guidance, reflecting the full year effect of last year's additional financing. The non-IFRS tax rate is not relevant in the context of negative non-IFRS operating income and the number of diluted shares is expected at around EUR 132 million, reflecting the fact that with an expected negative net income, the dilutive nature of our instrument no longer kicks in, also in change versus prior guidance.

We are now ready to take your questions.

[Operator Instructions] And our first question today comes from the line of Nicolas Langlet from BNP Paribas.

I've got 3 questions. First, on the licensing deals. So you mentioned part of the overperformance related to the licensing deal. So what would have been the growth in Q3 if you exclude the licensing deals? And if you want to share any details about those deals, that would be appreciated. Secondly, on Assassin's Creed Shadows, can you share the performance of the Titan life to date compared to the previous large-scale Assassin's Creed? And if you can share any feedback regarding the performance on Switch 2, that would be great.

And finally, on your cash position, what do you consider as the minimum vital gross cash position to run the business? And still on that topic, of the EUR 1.3 billion gross cash you expect at the end of the year, how much is part of Vantage Studio? And how much is part of the rest of Ubisoft? And how easy it is for you to use Vantage cash position for the rest of the business, if needed?

Thank you, Nicolas. So on your first question, the Q3 would have been slightly down without licensing deals. On Assassin's Creed Shadows, so overall, what we shared is that the brand is strongly benefiting from Shadows launch as we nearly doubled net bookings on the overall franchise over the first 9 months of the year and still strongly growing in Q3 with activity metrics up quarter-on-quarter. So we see that the brand is in good shape. And yes, the Switch 2 contributed to broadening the audience and to the performance in the third quarter. We've been happy to see that Assassin's Creed overperformed expectations in the last quarter.

So that confirms that we've been clearly improving the game's quality delivery we shadows this year, and that is paying off. In terms of the minimum cash position, if we look at the usual working capital variations throughout the year, we can consider that a few hundred million euros is the minimum cash position to run the business. And to your question on cash availability, the full -- as I said, the EUR 1.25 billion to EUR 1.35 billion consolidated gross cash is fully available to service debt maturities, and that includes the Vantage Studio liquidity that is also unrestricted through cash pooling to service debt maturity.

And to complete the answer, we have already upstreamed nearly EUR 700 million from Vantage Studio. So the rest being fully available through cash pooling.

We will now go to our next question. And the next question comes from the line of Ben Shelley from UBS.

My first one is you still have EUR 100 million of variance in your free cash flow and balance sheet guide for FY '26. Could you talk about what's driving that? And then could you also talk about will the revenues that were postponed by the restructuring be delivered in FY '27? And then my last question is, can you expand a bit further on your opening remarks where you say you continue to work on extending your debt profile? And can you outline what options you are considering?

Thank you, Ben. So on the first question, yes, the EUR 100 million variation in free cash flow guidance reflects a potential variation in working capital , and that can include potential cash in of a partnership. On your second question, you said revenues postponed by restructuring. I'm not sure I understand your question. Can you repeat the second question?

Yes. Will the revenues that were postponed by the restructuring and be delivered in FY '27, given they're not coming in FY '26?

So as part of what we did recently decided, there is one unannounced game that is postponed from fiscal '26 to fiscal '27. So that will be seen in fiscal '27. We, however, canceled a game this quarter. So we won't see that happening in fiscal '27. And in terms of the partnerships, as we said, we stopped negotiations on partnerships. And of course, we will have the leadership of the Creative Houses taking care of these future partnerships. But we have nothing more to announce in terms of timing or reasons for the conclusion of this partnership negotiations.

On the -- in terms of refinancing, as I said, yes, we have clearly sufficient liquidity with cash on hand to address our near-term maturity and that gives us the flexibility to assess the most efficient refinancing options, indeed, to push our debt maturity for the medium- to longer-term maturities, but we have nothing more to precise at this stage.

[Operator Instructions] And our next question today comes from the line of Doug Creutz from TD Cowen.

If I look at your guidance for the year of about $1 billion (sic) [ EUR 1 billion ] loss, that implies also you're going to lose about $1 billion (sic) [ EUR 1 billion ] in the second half. That includes the EUR 650 million from the accelerated depreciation. But if I back that out, that still implies you're going to lose EUR 350 million on low EUR 700 million revenue. In the first half of the year, you were slightly profitable on high EUR 700 million revenue, which seems like that there's a big acceleration in costs embedded in there aside from the accelerated depreciation. So could you just walk through where that acceleration in cost run rate is in the second half versus the first half?

So in terms of the second half EBIT, yes, most of the loss came from the accelerated depreciation, as you say. And the rest comes from the fact that we reduced net bookings by EUR 350 million, and that comes with a EUR 330 million gross margin reduction. Apart from that, we've seen that we continue reducing our fixed cost base as we will be closing the second phase of our cost reduction program of EUR 100 million a year ahead of timing.

[Operator Instructions] I will now hand the call back to the room for closing remarks.

So thank you very much for your question, and have a good evening and a good morning for the other part of the Atlantic. Thank you.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.

Good day, and thank you for standing by. Welcome to the Ubisoft Strategic Update Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Yves Guillemot, Ubisoft Co-Founder and Chief Executive Officer. Please go ahead.

Good evening, everyone, and thank you for joining us on such short notice. Today, we are announcing a major organizational, operational and portfolio reset. The fundamental change designed to reclaim our creative leadership, regain agility and restore the conditions for a return to sustainable growth and robust cash generation.

This reset is built around three core pillars: first, a new operating model centered around five specialized creative houses; second, a refocused portfolio with a meaningfully revised three-year road map; and third, an acceleration of our cost reduction initiatives to rightsize the organization and improve structural efficiency.

Let me start with the context. The industry has become persistently selective, especially on the AAA side. And the shooter landscape is increasingly competitive with rising development costs and greater challenges in creating new brands. Nevertheless, when successful, exceptional AAA content has more financial potential than ever.

While the progress on our production processes translated into improved level of quality across our releases in 2025, today's environment requires that we step change how we are organized and operate with the objective of delivering exceptional game quality at more competitive costs.

At the core of this transformation are our creative houses. Integrated business units, combining production and publishing, therefore, unifying the gamer relationship. Each one is built around a clear creative genre and brand focus with full responsibility and financial ownership led by dedicated and expert leadership teams, focusing on the long-term value creation road map. It is a radical move, relying on a more decentralized creative organization with faster decision-making and best-in-class cross-functional core services, supporting and serving each creative house.

This new operating model will further empower the execution of the group strategy centered on open-world adventures and GaaS-native experiences, supported by targeted investments, deeper specialization and cutting-edge technology, including accelerated investments behind player-facing Gen AI.

To put the creative houses in the best condition to success, we decided to refocus our portfolio with a meaningfully revised three-year road map and accelerated our cost reduction initiatives to rightsize the organization. We will discontinue several projects currently in development and provide additional time to certain games in order to ensure enhanced quality and maximize long-term value. We will also selectively close several studios and continue restructuring throughout the group. While these decisions are difficult, they are necessary for us to build a more focused, efficient and sustainable organization over the long term.

Taken together, these measures mark, as you can see, a decisive turning point in Ubisoft's history and reflect our determination to confront challenges to reshape the group. The portfolio refocus will have a significant impact on the group's short-term financial trajectory, particularly in fiscal year '26 and '27. But this reset will strengthen the group and enable us to renew with sustainable growth and robust cash generation. We are entering a new phase, one designed to reclaim creative leadership and build value for players and stakeholders over the long term.

So, I will now hand over the call to Frédérick, who will walk you through today's announcements in more detail.

Thank you, Yves, and hello, everybody. Let me start with the first pillar of this reset, the new operating model. As mentioned by Yves, our new organization will be structured around five creative houses and supported by: first, a creative network bringing together studios providing development resources; second, shared core services; and three, reshaped headquarters focused on strategy, governance, performance management and capital allocation.

This new organization will start operating early April. It is designed to simplify the organization and place creative and financial accountability closer to where value is created, strengthening our ability to innovate and execute with greater discipline, flexibility and speed.

At the heart of this reset is a new and decentralized operating model structured around five creative houses. These integrated business units will feature three major changes. First, they will combine game development and go-to-market functions with a gamer-centric approach and be fully responsible for brand development, content strategy as well as editorial direction. Second, they will be shaped by distinct creative genres led by dedicated high-profile incentivized teams with a unique set of expertise in their respective genres. And third, they will have full financial ownership and account for economic performance.

Overall, they will be driven by clear objectives and guiding principles. Each creative house will be organized around a distinct creative genre and designed to concentrate deep expertise in specific types of player experiences. Each house will host dedicated studios and will be responsible for developing must-play experiences for specific audiences and engaging player communities earlier and constantly throughout the developing process.

The first creative house, Vantage Studios is focused on scaling and extending Ubisoft's largest and established franchises, Assassin's Creed, Far Cry and Rainbow Six to turn them into annual billionaire brands. The second creative house is dedicated to competitive and cooperative shooter experiences. It includes the, The Division, Ghost Recon and Splinter Cell brands. The third creative house is designed to operate a roster of select sharp live experiences. It includes the For Honor, The Crew, Riders Republic, Brawlhalla and Skull & Bones brands. The fourth creative house is dedicated to immersive fantasy world and narrative-driven universes. It includes the Anno, Might & Magic, Rayman, Prince of Persia, Beyond Good & Evil brands. And the fifth creative house is focused on reclaiming our position in casual and family-friendly games. It includes the Just Dance, Idle Miner Tycoon, Ketchapp, Hungry Shark, Invincible: Guarding the Globe, UNO and Hasbro brands.

In addition, there are four new IPs currently in development, including March of Giants. We will communicate on their respective creative home at the later stage. Each creative house will benefit from dedicated leadership that will include high-profile talent coming from the industry. They will be tasked with attracting and developing top-level specialist talent and supported by incentive schemes aligned with creative success, player engagement and long-term value creation.

Finally, fully owning the gamer relationship, each creative house will have end-to-end responsibility for its portfolio, overseeing the full creative and brand scope from development to publishing, including brand marketing and sales go-to-market strategy. They will also be financially accountable both in terms of P&L and cash generation. This will sharpen strategic focus, reinforce execution discipline and ensure that investment decision will be taken closer to where value is created.

To support these creative houses, we are setting up a streamlined organization that preserves our scale benefits while reducing complexity. This new organization will be composed of the creative network that will bring together a powerful set of studios providing best-in-class production capacity and cross-functional creative expertise serving the creative houses.

Operating within a structured project-by-project collaboration framework, the creative network studios can deliver both co-development or end-to-end mandates under the strategic direction of each creative house. It also be supported by three core services that will provide the backbone of our ecosystem and act as an enabler for the creative houses and network. They will focus on delivering scalable technology, production capabilities as well as business services across the group.

First, production services will include production standards and tools, localization, play tests, game analytics, QA and QC. Second, technology and infrastructure will include game engines, online services, Gen AI initiatives and IT infrastructure. And third, business operations and services will include media planning, execution, influencer and direct-to-player capabilities, pricing and distribution management as well as customer support.

Finally, the new organization will be underpinned by a reshaped headquarters, which will set the group's strategic priorities, ensure support for all creative houses and maintain a forward-looking view on industry trends, including technological developments and market innovations. It would notably oversee the group's talent management strategy and performance monitoring, corporate communication strategy, legal services, capital allocation framework and financing, ensuring alignment between long-term strategy, financial performance and value creation.

To support the effective implementation and operation of this new model, the group also intends to return to five days per week on site for all teams, complemented by an annual allowance of working from home days. This evolution is intended to strengthen collaboration, including constant knowledge sharing and the collective dynamics across teams. We strongly believe in-person collaboration is a key enabler of collective efficiency, creative VT and success in a persistently selective AAA market.

Moving on to the second pillar of our reset is a significantly refocused portfolio and a meaningfully revised road map. In the context of a persistently more selective market, but also more rewarding as illustrated by the last quarter and as part of the finalization of the group's new operating model, we have conducted a thorough review of our content pipeline over December and January. This has led to the strategic decision to refocus our portfolio, reallocate resources and comprehensively revise our road map over the next three years. This will support our objective to return to exceptional levels of quality on the Open World Adventure segment and step change the group's position in the gas native Experiences segment, as illustrated by the recently acquired project March of Giants.

The reshape portfolio is designed to best position the creative houses for success, and this has led to two sets of actions. First, we have discontinued six games that do not meet the new enhanced quality expectations under a more selective portfolio approach. These are Prince of Persia, The Sands of Time remake, as well as four unannounced titles, including three new IPs and a mobile title.

Second, we have allocated additional development time to seven games in order to ensure enhanced quality benchmarks are fully met and maximize long-term value creation. This includes the unannounced title initially planned for fiscal '26 that has been delayed to fiscal year '27. Our objective is to ensure that every major project we bring to market has the right conditions, the right quality benchmarks and the right path to long-term value creation.

Finally, the third pillar of our reset is the acceleration of our cost reduction initiatives and the rightsizing of our organization to improve structural efficiency, restoring a much higher level of organizational agility and aligning our cost base with our strategic and creative priorities. This includes focusing resources on core value-creating activities, notably through further restructurings and strict hiring discipline across all functions. We will also continue to consider potential asset divestitures.

As part of our efforts to streamline operations and adapt to evolving market conditions, we have already taken decisive actions in the recent months to adjust our studio footprint. This includes the closure of the Halifax mobile studio announced earlier this month and the Stockholm studio as well as restructurings at Abu Dhabi, RedLynx and Massive.

The current cost reduction program of at least EUR 100 million in fixed cost savings versus fiscal year '25 is now targeted to be fully achieved by March 2026, one year ahead of the initial target. Building on this momentum, we are defining the third and final phase of our cost reduction program by setting a new objective to reduce our fixed cost base by an additional EUR 200 million over the next two years, bringing total fixed cost reductions in fiscal year '23 to around EUR 0.5 billion. This is expected to bring total fixed cost to approximately EUR 1.25 billion on a run rate basis by March 2028 compared to EUR 1.75 billion in fiscal year '23.

To conclude, I'll cover the financial impacts of this decision we've just described. First, the previously communicated fiscal year '27 guidance is no longer an appropriate reference, and we will update it in May 2026 during our fiscal year earnings release. Second, here are the key updated elements of our fiscal year '26 guidance. Net bookings are expected at around EUR 1.5 billion, translating into a minus EUR 330 million gross margin reduction versus the prior guidance, mainly reflecting changes to the current quarter release pipeline following the updated road map and the decision to postpone negotiation on certain partnerships in the context of our new operating model.

Non-IFRS EBIT is expected at around minus EUR 1 billion, mainly reflecting both the impact of the updated fiscal '26 net bookings that I just covered as well as the following transformation-related decisions that led to a one-off accelerated depreciation of around EUR 650 million.

First, the discontinuation of six games; and second, the allocation of additional time to seven titles with updated revenue expectations, reflecting a persistently more selective market. Also, free cash flow is expected at between minus EUR 400 million and minus EUR 500 million, and the non-IFRS net debt is expected at between EUR 150 million and EUR 250 million as of year-end fiscal year '26 with a cash and cash equivalent position of between EUR 1.25 billion and EUR 1.35 billion versus prior guidance of around EUR 1.5 billion. In addition, ahead of our Q3 sales release scheduled on February 12, we are providing an indicative net bookings figure of approximately EUR 330 million for the third quarter. primarily driven by an overperformance linked to partnerships and reflecting a robust back-catalog. The quarter notably saw the releases of Anno 117: Pax Romana and the Avatar: Frontiers of Pandora From the Ashes expansion that were appraised by players and critics alike. Further details will be provided on February 12.

I will now hand over the call to Yves for his final remarks.

Thank you, Frédérick. This major reset has meaningful near-term implications, particularly in financial year '26 and financial year '27. And we recognize this will be a significant shift for the market to absorb. However, we firmly believe that this is the right decision to reposition Ubisoft for creative leadership, sustainable growth and robust cash generation with a disciplined strategy and a simplified operating model and a refocused portfolio designed to create exceptional quality games and maximize long-term value creation.

We are now ready to take your questions.

[Operator Instructions] We'll take our first question. Your first question comes from the line of Aleksander Peterc from Bernstein.

I have a couple, if I may. So, the first one is whether your new creative house structure will translate into external financial reporting and guidance or at least Vantage Studio separately and then the other creative houses separately, so we know how they're performing both in terms of revenue and in terms of non-IFRS EBIT.

Secondly, how should we think about fiscal '27 because this major change is now happening towards the end of the current fiscal year '26. So is it fair to assume that things will get worse before they get better? So if you bottom out, it won't be before sometime '27 and maybe then an improvement in '28. Is that how we should think about that? And is this a rightsizing of the revenue base of the company as well? Or do you still plan medium term to retain your current revenue base more or less?

And then the last one, just on the return to free cash flow positive. Should we expect that to be a year plus 2 event? Or will it take longer for you to rightsize your cost base and get back to a cash-generative position?

Yes. Thank you, Alex. So, on your first question, at this stage, we don't expect and we don't plan to make such reporting. What you will have at minimum is that we will report the net income, so with the distinction between group share and minority interest.

In terms of fiscal year '27, beyond the fact that we just mentioned that we are postponing an important game to this year from '26 to '27. We can't say more. What we can say is that, of course, we'll provide the guidance in May. And everything we're doing today is to make sure that we reset the financial trajectory to sustainable growth over the next three years and for the company to be cash generating.

So it's a three-year event.

Your third question is -- can you repeat your third and fourth question, please, sorry.

One moment, please.

Can you hear me?

Yes.

The third question was basically, I think you answered it. The question was around when you plan to return to positive free cash flow. And from what I understood is this is a three-year plan to get back to that trajectory. Is that correct?

So we expect to get back to robust free cash flow over the next three years, but we'll give you more indication on the year-by-year schedule at a later stage.

Your next question comes from the line of Ben Shelley from UBS.

I think I've got three questions. One, how should investors think about your balance sheet over the coming years and cash and liquidity and debt? It would be helpful to have some commentary there.

My second question is, I just want to come back to that free cash flow question and specifically maybe into '27 and '28, how should we think about -- just almost just directionally, how should we think about sort of the free cash flow losses? Should we think about them falling into 2027 and 2028? Should we expect an improvement in free cash flow?

And then my last question is on Rainbow Six. And could you provide any commentary how that franchise has fared amid sort of an uptick in competition and new releases from your peers?

Yes. Thank you, Ben. So, yes, we benefit from a solid cash and cash equivalent position. And in terms of the way we'll proceed is we will proceed as we have been doing so far, which is that we will look at the different refinancing options that we have in front of us and choose the ones that will allow us to extend the maturity profile at the best cost possible. So that's -- we will replicate what we've been doing in the past in that area.

On the second question, I think I have already answered. Everything we're doing, which is to optimize our road map over the next three years and coming back with exceptional content quality, which we know is highly rewarded by the market. We just need to execute extremely well to optimize quality. We have big products coming over the next three years. And all the purpose of what we are doing with resizing of the cost base is to progressively get back to cash generation, and we expect to get back to robust cash flow generation within the next three years.

In terms of Rainbow Six, as we said, last quarter has been very competitive in the shooter segment. The team has done a great work to make sure that we will solve the cheating issue that we had mentioned last quarter. And we came with a strong season in December and the activity has come up as expected. Some players try competition like they usually do at the busy season, and they usually come back by Christmas, and that's what happened again this year. We are preparing for a strong Q4 as usual with the six invitation coming very soon and the unveiling of next year that will be very strong.

And if I could just come back to my question on the balance sheet. When you say you would sort of proceed as you've been doing, would that mean sort of going back to potentially looking again at traditional refinancing options and looking at financial markets? Or would it also mean potentially selling another minority stake as you have done before? Or are all options on the table and it's too soon to say anything?

Yes. We have different refinancing options that we can work in the coming year and 18 months. And we can also, as we mentioned, considering -- we continue considering the divestiture of assets.

[Operator Instructions] We will take our next question. And the question comes from the line of Doug Creutz from TD Cowen.

One of the factors you cited in bringing down your fiscal '26 revenue guide was the decision to postpone negotiations on certain partnerships. Is that just a delay that was around you having to sit down and decide what the new operating model was going to look like? Or does this reflect a more fundamental rethink of your approach to partnerships? And if so, could you talk about how you see that progressing going forward?

Yes. Thank you, Doug. So, yes, we decided to postpone negotiation on some partnerships. Partnerships, B2B partnership, as we said a number of times, is a key important way of doing business today as a complement to B2C. So it's here to stay and across different platforms and with different shapes of form.

What we said with the fact that we are postponing this negotiation is that we are starting a new organization very soon. And of course, the leadership of the creative houses will have the mandate to support the upcoming partnerships together with the group. So that's what they will pursue in our strategy. So, no fundamental shift, no fundamental change in our approach, just onboarding the new management coming with the creative houses.

We will take our next question. And the question comes from the line of Aleksander Peterc from Bernstein.

Just a quick follow-up. Just on your upcoming debt maturities. So, I see you have a '27 bond, EUR 600 million. You have an ocean maturing in '28. So, altogether, that's about EUR 1 billion. Do you expect to be in a position to roll this debt? Or do you have any other plans to refinance these maturities?

Yes. So, I think I answered already the question. We will be working -- so with this new operating model, this organization that will drive -- will work for our creative houses to perform very well with high-quality products and strong financial rewards. We will also in parallel work on the refinancing of our debt, and there are different options that are open to us, but it's too early to share them with you.

Thank you. This concludes today's question-and-answer session. I will now hand back for closing remarks.

So, thank you very much for your questions, and have a good evening or a good day.

This concludes today's conference call. Thank you for participating. You may now disconnect.

Good day, and thank you for standing by. Welcome to the Ubisoft H1 Fiscal Year 2026 Earnings Webcast and Conference Call. [Operator Instructions]

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Yves Guillemot, Ubisoft Co-Founder and Chief Executive Officer. Please go ahead, sir.

Welcome, everyone, and thank you for joining us today. Before we begin, I would like to start with the reason for the delay in publishing our results. First, we have appointed a new panel of auditors that was approved at the AGM last July. Their position as part of their review of the H1 financial accounts required a restatement of our financial year '25 annual accounts that had been previously approved by our former panel of statutory auditors in May.

In this context, we required additional time to finalize our accounts for our Board of Directors to approve them. Frédérick will walk you through this point in more details later in the call. The closing of our strategic transaction with Tencent, which will see Tencent become a minority shareholder in our new subsidiary, Vantage Studios, is now imminent, as all conditions precedent have been satisfied.

This will mark a pivotal milestone in Ubisoft transformation, significantly strengthening our financial position by bringing in EUR 1.16 billion of cash, enabling the group to deleverage as planned. It will also empower Vantage Studios to accelerate the growth of our 3 flagship IPs under a dedicated leadership team.

In a highly competitive market, Ubisoft delivered net booking above guidance on the back of stronger-than-expected partnerships that underscore the appeal and reach of our brands. Our portfolio showed contrasting dynamics this quarter with softer trends for Rainbow Six Siege, reflecting a phase of evolution for the game in an intense competitive first-person shooter environment, offset by strong performances across the rest of the catalog. The Assassin's Creed franchise exceeded our expectations, confirming its positive momentum and ability to engage players over time.

The Division 2 also continued to perform strongly, benefiting from the momentum of the Battle for Brooklyn expansion, with the game's first semester already exceeding last year's annual bookings.

Additionally, the progress we've made in addressing our fixed cost base brings with it confidence that we can continue to drive structural efficiencies across the organization that together with top line growth, will contribute to ensure a return to strong cash generation in the coming years.

Vantage Studios represents a key element of the transformation of the company toward a new operating model built around creative houses. We will have finalized the design of this new organization by the end of the year. These creative houses will be autonomously efficient, focused and accountable business units, each with its own leadership, creative vision and strategic road map.

This group-wide transformation reflects our ambitions to renew how we create and operate in order to deliver great games for our players and lasting value for our partners and shareholders. The full details of this new operating model will be unveiled in January.

On the innovation side now, we are making great strides in applying GenAI to high-value use cases that bring tangible benefits to our players and teams. It's a big -- it's as big as a revolution for our industry as the shift to 3D, and we have everything to lead on this front. On the player experience side, we are continuing to make progress on groundbreaking player-facing generative AI application, building on our NEO NPC announcement in 2024.

We have already advanced from prototyping to player reality, and we are looking forward to sharing more before the end of the year. On the production side, we now have teams in all our studios and offices embracing this new technology and constantly exploring new use cases in programming, art and overall game quality.

On the transmedia side, we also, after greenlighting the Assassin's Creed live-action TV series in July, I would like to highlight the recent success of the animated Netflix series, Splinter Cell: Deathwatch that premiered on October 14, obtaining an 86 score on Rotten Tomatoes and landing the daily top 10 across more than 12 countries, including 6 consecutive days in the U.S. This strengthens our brand's long-term value ahead of the Splinter Cell's remake currently in development at the Ubisoft Toronto Studios.

Last but not least, I would like to celebrate the successful launch of Anno 117: Pax Romana that expands the city-builder genre. This level of quality, innovation and sales set the standard against which we want to measure our future releases performance in the coming years.

So I will now let Frédérick give you details on half year performance.

Thank you, Yves, and hello, everybody. H1 net bookings stood at EUR 772 million, up 20% year-on-year with 34 million MAUs and 88 million unique users across consoles and PC, slightly down year-on-year when excluding XDefiant from the base.

Turning to our second quarter. Net bookings stood at EUR 491 million, above guidance and up 39% year-on-year. The outperformance was driven by stronger-than-expected partnerships, demonstrating the power and attractiveness of our portfolio as well as a meaningful contribution from live TV and animated series. Excluding partnerships, overall back-catalog performance this quarter was robust and in line with expectations, broadly stable year-on-year, but marked by contrasted dynamics.

The Assassin's Creed franchise posted a strong performance in Q2, with both Assassin's Creed Shadows and the rest of the brand’s catalog overperforming. In the year to date Assassin's Creed has generated 211 million session days, around 35% higher than the last 2 years' average.

Shadows benefited from the launch of the New Game+ mode, which was widely anticipated by the community and introduced greater difficulty and new challenges for players. The Claws of Awaji expansion released on September 16 and contributed to re-engaging players. It was praised as a solid addition to the base game, offering new unique boss fights in a beautiful and dark atmosphere.

Looking ahead, Assassin's Creed Shadows will reach a broader audience with its launch on the Nintendo Switch 2 on December 2. Beyond Shadows, the rest of the AC back-catalog also performed strongly, highlighting the strength of the franchise.

Turning to the current quarter, we launched Valley of Memory on November 18, a free major update for Assassin's Creed Mirage, which brought new content and a fresh chapter in Basim's story set in AlUla. First feedback from the community is very positive, with player activity on Assassin's Creed Mirage doubling following the launch of the update, enabling the game to reach the 10 million player mark.

In a highly competitive first-person shooter market, Rainbow Six Siege continued to attract new players this quarter, with acquisition levels twice as high year-on-year, and sustain activity levels, with unique players stable quarter-on-quarter and up double-digit year-on-year.

Session days and playtime also increased both sequentially and year-on-year. However, as part of the evolution of Siege and its move to free access, a temporary surge in cheating has impacted activity and player spending versus expectations. With additional resources now in place and further hires planned, the team has identified the main issues and is actively addressing them with a robust plan in place.

Having focused most of this year on establishing a new foundation for the game, the team is exploring a new seasonal approach that introduces multiple updates throughout each season, focusing on the core gameplay experience and heavily engaged players.

This shift is designed to offer a steadier stream of fresh experiences with more variety keeping players engaged and supporting long-term franchise growth. The Siege community remains highly engaged and passionate about the game’s success. The development team is equally committed to working closely with players to address recent feedback, with a strong focus on anti-cheat measures and gameplay balance.

As announced at the Munich Major on November 16, starting in Season 4, the team will double the number of anti-cheat updates per week and introduce new prevention solutions. On the balancing front, the team is accelerating efforts in Season 4, with four balancing updates per season planned for Year 1, aligned with the new content cadence. To celebrate Siege’s 10-year anniversary in December, players can look forward to daily rewards and a special in-game event launching mid-December.

Elsewhere in the catalog, I would like to highlight a few notable performances. The Division 2 continued to benefit from the momentum of the Battle for Brooklyn DLC release in May, as well as regular content updates, continuing to attract new players to the game. Along with rising player numbers, player engagement is up, with a record second quarter in terms of Session Days since financial year '21. The game’s performance this semester has already exceeded last year’s annual net bookings.

Avatar: Frontiers of Pandora posted a strong performance this quarter on the back of the July third person update announcement, that was widely anticipated by the community. The game also regained momentum with the announcement of the From the Ashes expansion that will come along with the movie.

Star Wars Outlaws launched on Nintendo Switch 2 in September to strong critical and player reception. The release expanded the game’s audience and was praised for its exceptional visuals, technical optimization, smooth performance and seamless transition to Nintendo’s new hardware.

Total digital net bookings reached EUR 436 million, up 62% year-on-year and PRI stood at EUR 323 million, up 110% year-on-year. Both of these metrics benefited this quarter from tailwinds linked to partnerships. Within PRI, mobile amounted to EUR 26 million, slightly down year-on-year.

First, you will find our non-IFRS P&L on Slide 7 of our presentation. Gross margin was strongly up year-on-year by more than 3.5 percentage points, which reflects the fact that this semester saw more high-margin partnership than the first semester last year.

R&D was down year-on-year, and we come back -- I will come back to that point in the following slide. SG&A was down 16%, reflecting lower variable marketing expenses due to the absence of major releases this semester, while last year's first half saw the release of Star Wars Outlaws and XDefiant Overall non-IFRS EBIT came back to the positive zone at EUR 27 million this semester, which marks a strong improvement to last year's EUR 250 million loss. Please refer to our press release or presentation appendix for the full IFRS to non-IFRS reconciliation.

Turning now to Slide 8. P&L R&D was down year-on-year and mainly reflects lower depreciation of in-house software-related productions coming from the absence of new AAA releases this semester compared with accelerated depreciation for Star Wars Outlaws and XDefiant last year.

For its part, total cash R&D was down 11% or EUR 70 million and reflects our continued efforts addressing our fixed cost base. Looking at cash flow statement on Slide 9. Free cash flow stood at minus EUR 251 million compared with a negative EUR 126 million the previous year.

This free cash flow consumption mostly reflects the following impacts. On the one hand, a negative EUR 139 million cash flow from operations, reflecting the fact that we had no new releases this semester, which was half the outflow of last year, again, illustrating a strong improvement versus the year before.

And on the other hand, a negative EUR 102 million change in working capital requirements, notably driven by trade payables decrease comparing with a significant higher gain in receivables last year, which mainly reflects cash in from Q4 fiscal year '24 partnerships. Non-IFRS net debt stood at EUR 1.15 billion, slightly up versus last year, and cash and cash equivalents amounted to EUR 668 million, down EUR 265 million versus last year, mostly driven by the reimbursement of around EUR 245 million in debt. The -- sorry, the EUR 1.16 billion cash injection from the Tencent transaction will deleverage the group and strengthen its balance sheet.

I would now like to provide an update on the continuous progress we have been making on the group's transformation. First, all conditions precedent of the transaction with Tencent have been satisfied, enabling the sale of a minority stake in our new subsidiary, Vantage Studios to Tencent to close in the coming days.

This marks a major milestone in our transformation journey. The proceeds of this transaction will deleverage the group on a consolidated non-IFRS net debt basis while providing enhanced financial flexibility to support our strategic transformation. A new leadership team is being formed around Vantage Studios, including heads of franchises to drive creative excellence and operational agility across each brand on their path to building annual billion euro brand ecosystems.

Second, we will have finalized by the end of the year, the design of our new operating model built around creative houses, independent business units with the objective of driving stronger creative vision, greater focus, efficiency, autonomy and accountability. We will unveil the full details of this model in January.

Overall, we benefit from a strengthened balance sheet. Our non-IFRS net debt position stood at EUR 1.15 billion at end September with a cash and cash equivalent position of EUR 668 million. The EUR 1.16 billion proceeds from the Tencent transaction will enable us to deleverage the group and notably proceed with the early repayment of the term loan and Schuldschein loans, which have an outstanding principal amount of approximately EUR 286 million.

Of note, EUR 210 million were due next month. Additionally, we will cancel the undrawn revolving credit facility and initiate discussions with our banking partners with the objective of putting in place a new facility designed to support our strategic ambitions, in line with the broader transformation currently underway. Overall, we plan to rely on a very comfortable cash and cash equivalent position at end of March 2026 of around EUR 1.5 billion.

Third, we continue to make progress on our new cost reduction program, which targets at least EUR 100 million in fixed cost savings by fiscal year '27 versus fiscal year '24 -- versus fiscal year '25, sorry. Thanks to continued discipline in hiring and targeted restructuring efforts. The group's global head count stood at 1,797 at the end of September, representing a decrease of around 1,500 employees over the past 12 months and about 700 since the end of March.

Since the end of the semester, a targeted voluntary leave program and a proposed restructuring were introduced at our Nordic studios. Overall, the H1 fiscal year '26 fixed cost base stood at around EUR 701 million, a decrease of EUR 69 million or 9% year-on-year, including a favorable EUR 19 million foreign exchange impact. Out of the EUR 69 million reduction, approximately EUR 55 million came from lower capitalized investments.

Before I turn to the outlook, I would like to cover an IFRS update. As Yves mentioned, we had to delay publishing our results. Towards the end of the review process of our H1 financial accounts, our new panel of auditors reviewed the analysis that had led to the fiscal '25 accounts being validated by our former panel of auditors in May. This related specifically to the IFRS 15 revenue recognition of one meaningful partnership in fiscal '25.

The new panel of statutory auditors considered that utilization-based payment schedules must now be recognized under IFRS 15 as revenues over utilization even if the commitments are firm. This ultimately led to the restatement of our fiscal '25 account as per IAS 8. We then had to assess the impact of this restatement as well as the implication of this new position on the second partnership booked in Q2 along the same initial principles.

The combined effect of what I've just described results in the company not complying with its leverage covenant ratio under certain existing financing agreements at September 30, 2025. However, this is being addressed by the aforementioned actions relating to the concern debt instruments. The restatement of the prior year financial accounts are detailed in the appendix of our press release, and the IFRS accounting restatement has no impact on the group's non-IFRS indicators given the firm nature of these amounts and has no impact on the operating cash flow profile of the group.

Beyond this technical restatement, I want to make one thing clear. Our approach to B2B partnerships as a critical complement to our B2C business has always been and will continue to be centered around maximizing the value of our catalog, which we measure in terms of cash flow generation over time.

Turning to the full year outlook. The stronger-than-expected benefit from partnership increases our visibility for the fiscal year in a context where, on the one hand, there remains a number of new releases to come by the end of the fiscal year. And on the other hand, Rainbow Six Siege faces an increased competitive FPS environment.

In this context, we reaffirm our full year objective with net bookings to be stable year-on-year, non-IFRS operating income to be around breakeven and negative free cash flow, reflecting the group's transformation. Following the closing of the Tencent transaction, we expect to maintain a consolidated non-IFRS net debt position of around 0.

Looking at Q3, we expect net bookings of approximately EUR 305 million, which will represent a slight increase year-on-year. Q3 will notably see the releases of Anno 117: Pax Romana as well as the Avatar Frontiers of Pandora from the Ashes expansion. Anno 117: Pax Romana launched on November 13, and marked a bold new chapter for the Anno franchise, building on the series strong momentum and releasing simultaneously for the first time on PC and console, it showcases impressive scale, striking visual fidelity and a deep economic simulation.

The title has already received strong industry recognition, including winning Best PC Game at Gamescom and has now launched to strong critical reception with an 85 Metacritic score, the best score ever in the franchise, which translates into solid consumer spending growth after 1 week compared to the successful Anno 1800. IGN awarded it 9 out of 10 calling it "a gorgeous antique city-builder that is worthy of a standing ovation".

For the first time in the series, players can choose their starting province is defined by distinct cultural identities and unique gameplay mechanics that emphasize player choice. This innovation expands the game's depth and replayability, laying the foundation for sustained player engagement and rich post-launch experience.

The Avatar: Frontiers of Pandora - From The Ashes expansion is set to launch on December 19. Timed to coincide with the theatrical release of Avatar: Fire and Ash. This bold expansion sees players embark on the journeys of So’lek, a battle-hardened Na’vi warrior who seeks revenge against the ruthless Ash clan. The expansion introduces new visceral gameplay set in a ravaged Kinglor Forest and unveils a new subregion known as The Ravines.

Ahead of that, a highly anticipated free update introducing a third person mode will arrive on December 5 and will feature long requested by the community. Together, this content should further strengthen engagement and extend the game's momentum into the holiday season.

And for its part, Q4 will see the release of the Prince of Persia: The Sands of Time remake, Rainbow Six Mobile, The Division Resurgence as well as an unannounced title.

Beyond fiscal '26, we expect to return to positive non-IFRS operating income and free cash flow generation in fiscal '27 and to see significant content coming from our largest brands in fiscal '27 and fiscal year '28.

Finally, as always, here are a few fiscal '26 housekeeping items for modeling purposes. The stock-based compensation is expected at around EUR 32 million, down versus prior guidance and reflecting the lower share price. The non-IFRS net financial charge, excluding foreign exchange, is expected at around EUR 45 million, unchanged versus prior guidance and reflecting a year-on-year increase, primarily attributable to a lower interest income.

The non-IFRS tax rate is not relevant in the context of breakeven non-IFRS operating income and the number of diluted shares is expected at around EUR 132 million, reflecting the fact that with an expected negative net income, the dilutive nature of our instruments no longer kicks in. We are now ready to take your questions.

[Operator Instructions] And your first question today comes from the line of Aleksander Peterc from Bernstein.

The first one would be pertaining to the breach of covenants. So although this is quite temporary, I'd still like to know if there are any of your other debt instruments that don't have these covenants, but have a standard cross-default clause that could be enforced. Is that a risk over the coming days or not?

It's just a hypothetical, but just to clear that for me. And the second question is, given your below expectations third quarter, it seems to me that the implied fourth quarter is extremely strong, down only 15% year-on-year. But last year, you had the Assassin's Creed Shadows release, which has delayed and that's propped up the fourth quarter quite substantially. So can you help us understand how are you going to achieve this super strong fourth quarter?

Yes. Thank you, Aleks. Yes, so that's on your first question, so we are addressing the topic by settling the repayment of our covenant-based debt, Schuldschein and term loan, and we are canceling the RCF before building a new credit backup line facility by repaying EUR 286 million in principal amount, keeping in mind that we were anyway preparing to repay EUR 210 million that were due in December and EUR 50 million in September.

So overall, the net acceleration is estimated to be around EUR 25 million if we look at the impact on the medium-term cash trajectory for the company. So that has nearly no impact. We don't expect any impact on the overall debt structure.

And keeping in mind that we will benefit from a very comfortable EUR 1.5 billion cash and cash equivalent position at the end of March. In terms of Q4, yes, as you mentioned, it would be significantly lower than the Q4 that we posted over the last 2 years. Keeping in mind that Shadows only impacted Q4 last year for 10 days. So this quarter will benefit from slate of new releases, including the remakes of Prince of Persia: The Sands of Time, Rainbow Six Mobile, The Division Resurgence and unannounced title.

We have a meaningful contribution of partnerships, B2B partnerships, but to a lower extent than last year. We expect a strong Rainbow Six Siege that will go through the Six Invitational and starting into the next year. We will have the follow-on sales impact from Anno 117 and the Avatar expansion. So all this will contribute to the key building blocks of Q4.

[Operator Instructions] And your next question comes from the line of Nick Dempsey from Barclays.

So my first question is, have the auditors looked at all of the partnership deals that you have done going back several years, so we can be comfortable that what we are seeing here is the final restatement impact, we won't get more, for example, at the full year '26 results.

Second question, if I look at the restatement for FY '25 and the restatement for the last 12 months period, it seems quite a big difference. I understood something, but can you perhaps explain the difference between those 2 restatements, given that I thought it related to particularly one partnership deal? And then the third question, in terms of any partnership deals landing in Q4, do you have good visibility on when they land and whether they will land?

Yes. So on the first question, so there is no risk on the prior year financial accounts. It's, by the way, interesting to have in mind that when you look at the many partnerships that we've been signing over the last 7 years, if you look at all the partnerships between fiscal year '19 and fiscal year '25, all of them have converted into cash.

So that traces back to the quality of the earnings and the very strong cash conversion coming from these various partnerships. In terms of -- so on your following questions, I understand that you're talking about the fiscal '25 restatement. So it refers to a meaningful partnership. And if you look at the first half fiscal '26, you see the difference between IFRS revenues and non-IFRS net bookings, and you'll see that also it's driven by the second partnership that I mentioned earlier.

And in terms of Q4, so as we said, we've had an increased visibility on this B2B partnerships performance. And so yes, we have a meaningful contribution that is expected in Q4, but to a lower extent than last year.

But you have full visibility on that landing in that time frame or you don't? That was my question.

Yes, we have a good pipeline of partnerships that we are working on.

There are currently no further questions. I will hand the call back to you.

So thank you very much for your questions, and have a good day or a good evening. Thank you.

Thank you.

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.