Ladies and gentlemen, dear shareholders, I'm delighted to welcome you to this year's combined general meeting. Please note that this AGM is open to the public and will be broadcast live. You can also find the replay on the company website. This meeting is an opportunity to review the past year, looking back on our achievements as well as the challenges that we have faced. I look forward to reviewing our strategy and the ongoing transformation. I will also share with you our objectives for the coming years. With that in mind, we will now proceed to appoint the officers of this AGM, which I will chair in my capacity as Chairman of the Board of Directors.
I suggest that be appointed as scrutineers, assuming that they agree, the two shareholders present with the largest number of votes: Guillemot Brothers Ltd., represented by Christian Guillemot and Claude Guillemot in his own name. If the scrutineers agree, I also propose that Kathy Bullock, Ubisoft's Administrative Director and Secretary of the Board of Directors, be appointed as Secretary of the meeting. Now that we have appointed the officers of this meeting, the meeting is now open. Also present, we have the members of the Board of Directors, as well as Axel Lemaire and André Loeskrug-Pietri, whose appointments are subject to your vote. Gwenaëlle Chedaleux from KPMG and Julien Molavet from Fourvius-Mazars, our statutory auditors, are also here with us. We also have with us Jérôme Lorangeur, our Judicial Officer, as well as Frédérick Duguet, our Group CFO.
The preparatory documents for the AGM have been made available to shareholders within the required timeframe and in accordance with legal and regulatory requirements. All documents required by law are also available at the meeting venue in electronic or paper format as applicable. The AGM is called upon to deliberate on the agenda published in the Bar La newsletter on June 25th, 2025. Please note that no shareholder has exercised their right to add items to the agenda or draft resolutions. I hereby inform you that the provisional quorum at the opening of the meeting has already been reached. As the count just carried out, it shows that the total number of shareholders present or represented or having voted by mail is 1,856, representing a total of 79,346,880 shares out of the 132,598,642 shares with voting rights, or 59.84%.
With more than a quarter of the shares with voting rights present, the AGM can therefore validly deliberate. The final quorum will be announced shortly. With regard to the agenda for our meeting, we will first present the group's results, our strategy, and our objectives for fiscal 2026 and beyond. We will also present the resolutions submitted for your vote and a summary of the statutory auditors' reports. We will then proceed to the Q&A session and confirm the final quorum before opening the vote on the resolutions. Thank you. Now, let's introduce our group's results. I'd like to start with a review of the video game market and look back at the highlights of the past year. We will also present our main strategic development priorities. Frédérick will present the key highlights of our recent financial performance, as well as our objectives.
The video game market is currently in a transition phase. Our industry has, for a number of years, been facing contrasting dynamics, but it does provide interesting prospects for the coming years. This market is the largest in the entertainment industry, and it was worth $183 billion in 2024, a level that has remained stable over the past three years, but a level that is up from the pre-COVID era. In recent years, this market has been particularly selective, and this is due to various factors, including an influx of content resulting from a period of overinvestment. Also, spending and playing time are increasingly shifting towards live games in very large franchises, and we're dealing with a macroeconomic environment that is fraught with uncertainty, inflation, and consumer caution. This combination of factors has led to mixed results.
Mobile, which now accounts for more than 50% of the market with a strong presence in emerging markets, is now a key growth driver for major brands. After a post-COVID adjustment phase and after inflation returning to normal, the market is expected to return to a growth trajectory with a 4% increase in 2025 over the previous year. This growth is expected to be driven mainly by the console segment. In the medium term, annual growth is expected to remain around 3%, with the market expected to exceed $200 billion in 2027. This is driven by a buoyant console segment, whose average annual growth rate is expected to be around 6%, as well as by the rise of emerging markets. Those forecasts do not capture the potential positive impacts from upcoming breakthrough technologies such as generative AI, cloud technology, and user-generated content, or UGC.
By 2030, population trends are expected to drive the global market to over 4 billion players versus 3.4 billion in 2024. Let's now zoom in on the console and PC segment outside China, which currently accounts for most of our market. This segment declined by 2% in 2024 and has remained stable over the past three years. As part of our financial covenant, there are three different types of revenue. We have our core games category, that's our core business, and we have additional revenue, which includes DLC, downloadable content, and monetization in games, and lastly, our subscriptions. Regarding our core business, the core games category, while that has dropped by 11% this year to $28 billion, its lowest level since 2020, while subscriptions and additional revenue now account for over 55% of this market.
Over the next three years, core gaming revenues and additional revenues are expected to grow by 5% and 4.5% respectively, above the market growth rate. This growth should be driven in particular by the release of the Switch 2 Nintendo console, which is doing extremely well, and of course, the release of GTA 6, the sixth edition of Grand Theft Auto, as well as the surge in live games. We are therefore well positioned to capitalize on this growth, thanks to our strategic refocus on our two key pillars. The pandemic has attracted a significant amount of capital to the video game industry. As you can see in the chart on the left, between 2020 and 2022, there was unprecedented interest in the video game industry, with a massive influx of investment from investment funds peaking at over $12 billion in 2021. That's 4x the 2019 level.
This period of overinvestment has led to a glut of projects and intense pressure on talent. We have seen an actual war on recruitment, with high churn across the sector. Since then, the industry has undergone an unprecedented wave of restructuring, as you can see on the chart on the right, culminating in 14,800 gross layoffs worldwide in 2024. That's the highest level ever seen. The pace remains very strong in 2025. What's our analysis? The market is in the process of cleaning up. Investment is falling sharply to focus on a smaller number of projects, and we're also seeing greater wage moderation. Here's another interesting point. We're now seeing historically high staff retention and a return of senior talents to Ubisoft. This creates a more sustainable environment for the future, even though the race to improve quality will remain a major focus.
Let's now move on to the highlights of the past year and our key strategic development priorities. This year, we have faced many challenges with contrasting dynamics within our game portfolio. We're operating in a highly competitive industry. Against this backdrop, we generated EUR 1.85 billion in net bookings, a near break-even non-IFRS operating result. We managed to generate positive free cash flow for the year, amounting to EUR 128 million. This reflects the discipline applied across the group. Also, we have delivered our cost reduction program ahead of schedule. We are determined to go further with additional savings of at least EUR 100 million over the next two years. The goal is to generate structural efficiency gains and strengthen the various functions within our organization. Obviously, we also seek to shore up the foundations of our group.
Regarding consoles and PCs, business indicators remain broadly stable year- on- year, with solid levels of time spent playing, as well as days of play. For the fiscal year, we delivered a robust performance with 134 million unique active players and 36 million average monthly active users. Franchises such as Assassin's Creed and Rainbow Six, those two franchises each attracted around 30 million unique active players for the fourth consecutive year, while Far Cry attracted over 20 million players over the same period. We have other brands, and those other brands continue to generate strong engagement with over 100 million unique active players in total for the fiscal year. One of the highlights of the year has been the launch of Assassin's Creed Shadows. Let's watch the launch trailer.
Nobukatsu and his men spare no one.
We have ways to banish such darkness. The path of the warrior is like a boundless river that begins as a stream. One warrior stands upon the battlefield, while another lives in the darkness, driven by vengeance.
I have a dead desire.
Bound by blood, we will be unstoppable. Adapt to every condition, and let your blade be an extension of your spirit. Remember, justice is forged in the shadows.
Assassin’s Creed Shadows, available now.
Merci.
Thank you. Assassin's Creed Shadows was released last March and has since established itself as the second best launch in the franchise's history, just behind Valhalla. It also broke a historic digital sales record on the PlayStation Store for Ubisoft. Shadows has been very well received by players, and this illustrates both the strength and resilience of the Assassin's Creed brand. It also showcases our ability to deliver ambitious experiences. Shadows is also the first game developed on the new version of our Anvil engine, which lays the foundation for fast improvements in graphics, immersion, and gameplay. This has been true for a number of years now. Digital Foundry, in particular, congratulated Ubisoft for the excellent graphics and gameplay, saying it was the most beautiful episode of the franchise to date and undoubtedly one of the most visually impressive games in 2025.
Now, when it comes to recent launches, as fiscal 2025-2026 begins, just a month ago, we launched Rainbow Six Siege X, a major evolution in our flagship Rainbow Six Siege game, which lays the foundation for strong growth in the years to come. Here's the launch trailer.
Rainbow Six Siege X. Get free access now.
So, 10 years later.
Here we are, 10 years after the initial launch, and Rainbow Six Siege X introduces a deeply renewed experience. A new game mode that we have called Dualfront, completely modern 5v5 maps, improved visuals, a soundscape that has been completely overhauled, enriched tactical gameplay mechanics, and a new optimized integration path for new players. Rainbow Six Siege X also heralds a new business model with free access to Dualfront, unranked modes, and certain core features. The competitive modes Ranked and the Siege Cup, which are offered via eSports, are actually offered via a paid version of the game. This approach aims to significantly expand our player base while also strengthening our commitment to the e-game community.
Last of all, the game is based on an improved version of the Anvil engine that will allow us to produce more content, both in terms of gameplay, faster, with a high level of quality. All of these drivers are essential for future success in the live service e-gaming segments. I would now like to come back to our strategy, which is built upon two key priorities: regain leadership in the open-world adventure games and make strong headway in native service games. Open-world adventure games are defined by experiences designed to immerse players in an adventure through an immersive world and captivating story. It's a dynamic market worth EUR 25 billion, and it is expected to grow in coming years. It is built upon new technology characterized by high barriers to entry.
In this market, Ubisoft can rely on key franchises such as Assassin's Creed, Far Cry, The Division, and Ghost Recon. Assassin's Creed, which I just mentioned, is fully in line with this vertical breakdown, and it's a segment we're going to continue to deliver in terms of immersive experiences to attract more players to our worlds, to our games, reaching new audiences. This is going to be achieved predominantly through multiplayer and mobile gaming platforms. Our second objective is to expand our presence in what we call native service games. It is a segment characterized by experiences that are designed to engage players over the long term through engaging gameplay that rewards progression, social interactions, and frequent content updates. It's a growing market with EUR 120 billion. It has the largest total addressable market in terms of number of players and also in terms of revenue.
This is a segment where we have successfully installed Rainbow Six Siege, which we just mentioned, that has since become one of the largest games in the industry, which is actually part of the top 15 in terms of MAU for both console and PC, with the aim to reach the top six and then top five. In addition to the flagship game that I just mentioned, our objective is to also make strong progress in the growing market, generally speaking, by continuing to enhance our current experiences that we offer and capitalizing on upcoming launches such as The Division and Ghost Recon. We also have racing games such as The Crew and Anno. It is a dual-pillar strategy that offers prospects for recurring revenue and profitable growth, but it is also an opportunity for us to leverage the power of our franchise games.
We're also benefiting from ongoing selective investments in proprietary technology so that we can develop a competitive edge in the long term, predominantly through our own game engines such as Anvil and Snowdrop, which we've already mentioned, that are recognized as being the best in the world for their respective fields. We are also continuing to transform our organization with a clear goal in mind: transform our portfolio with more evergreen offers. Here we're talking about long-term brands and games that continue to recruit new players. These are games that we're going to continue to keep for many years to come. To do this, we're currently working on overhauling our operating model to better meet player expectations, deliver superior quality of play, and ensure disciplined capital allocation. We'll announce our new target organization by the end of the year.
A major step in this transformation was reached with the recent announcements of creating a new subsidiary supported by Tencent as one of our strategic partners. Focused on accelerating growth of three of our most iconic franchises, the subsidiary will play a pivotal role in building evergreen brand ecosystems to generate annual revenue over EUR 1 billion. This will include improving the quality of single-player native experiences, expanding the live service offering with more multiplayer features and more frequent content updates, significantly improving content creation by leveraging Ubisoft's proprietary technology, and developing business in markets that are still little exploited by Ubisoft, such as mobile and Asian markets, particularly in China. I would now like to go into further detail about our strategic transaction with Tencent.
It is a transaction which is part of our overall strategic view that started last year, through which we have examined various transformative strategic and capital options so that we can extract the best possible value of our assets and ensure that value for our stakeholders. Following a formal competitive process, after careful consideration of expressions of interest from various parties, the Board of Directors determined that the transaction offered the best value for Ubisoft's assets and unanimously approved the proposed transaction. Executive officers, not having participated in deliberations, know the vote. Last March, we announced the creation of a subsidiary that would be dedicated to the development and distribution of games from our three iconic franchises, and these are Assassin's Creed, Far Cry, and Rainbow Six.
The announcement went hand in hand with Tencent's intention to make a minority investment of EUR 1.16 billion in the subsidiary, thereby representing an economic interest of around 25%. The transaction shows up our strategic value of the brands, valuing the new entity at approximately EUR 4 billion, plus at least EUR 1 billion for paid licenses granted by Ubisoft to the subsidiary. This is an operation, when we look at the overall value, this is an operation of around EUR 5 billion, which is a significant value for group stakeholders. Ubisoft will have strategic and operational control of the entity. It will also integrate and incorporate an industry-leading partner to underpin development. At the same time, the transaction allows Ubisoft to significantly strengthen the group's balance sheet by fully deleveraging. The transaction is expected to be finalized by the end of the calendar year.
The first condition was met with issuance of an independent expert opinion on the transaction, saying that the transaction was fair from a financial point of view for Ubisoft's shareholders. I would now like to hand over to Frédérick, who will first take a look back on our year's finances.
Yves, thank you very much. Hello to everyone here. I will now go over the full year 2025 financial results and talk about our Cost of Financial Discipline program. I will also talk about forecasts for the current financial year and talk about key drivers for our ongoing growth. Despite a difficult context, annual net bookings amounted to EUR 1.85 billion, down 20% year- on- year. Excluding partnerships, net bookings are only down by a few percentage points. Gross margin remained high at 89%. Research and development expenditure was stable on a year-for-year basis.
This is, on one hand, due to a decrease in depreciation related to capitalized R&D. This is in connection with a more limited number of AAA releases over the year, combined with the fact that Assassin's Creed Shadows will launch at the very end of the year. On the other hand, increase of uncapitalized R&D linked in particular to spending on our live games, XDefiant, whose development was finally stopped last December. Non-IFRS SG&A expenses were down 9%, reflecting lower structural costs driven by an ongoing cost reduction program. This is also due to a lower level of marketing expenses. In terms of parent company accounts, we record a current result of EUR 132 million compared to a current result of EUR 547 million the previous year. This is mainly due to a decrease in revenue invoiced to distribution subsidiaries, which is in line with the decline in the group's consolidated revenue.
Exceptional losses of -EUR 6.5 million. We can compare that to an exceptional result of EUR 47 million last year, explained by derogatory depreciation of R&D investments. This is compared to a recovery made the previous year. If we now look at our cash flow statement, free cash flow amounted to EUR 128 million, above target and compared to -EUR 509 million the previous year. This change mainly reflects a number of items. First, strong improvement in cash flows, around EUR 560 million from operating activities, related to operating activities, which amounted to EUR 169 million. This is driven in particular by favorable change in working capital requirements. We also had a vast majority of trade receivables at the end of March 2024 that were received. On the other hand, net investments in property, plant, and equipment, and intangible assets were down by EUR 75 million. Previous year's level included acquisition of Activision Blizzard's cloud streaming rights.
Non-IFRS net debt improved by EUR 100 million year- on- year to EUR 885 million at the end of March. We have a strong balance sheet, available cash at a comfortable level of around EUR 1 billion at the end of March 2025, and equity amounting to EUR 1.8 billion. I would now like to quickly give you an update on the cost reduction plan that we initiated or that we've made progress on over the past year. The initial program was targeting EUR 200 million in fixed cost base by the 2025-2026 financial year compared to the 2022-2023 financial year. We are slightly above target and ahead of schedule. Thanks to maintaining strong discipline on recruitment and target restructuring, the group's total headcount stood at 17,782 employees at the end of March 2025.
That's a decrease of around 1,230 employees over the year and nearly 3,000 since September 2022, all the while bringing our churn rate to the lowest levels in history. This is especially the case for our more senior positions. The fixed cost base for the 2024-2025 financial year amounted to EUR 1.55 billion, down EUR 205 million and - 12% compared to the 2022-2023 financial year. This includes a favorable currency effect. Compared to 2023-2024, the fixed cost base decreased by EUR 55 million with almost no currency impact. Building on this momentum, we plan to reduce our fixed cost base by at least EUR 100 million over the next two years. This will be done thanks to increased selectivity in allocating money for investments, continuing target restructuring, reflecting a simpler and more efficient, more streamlined organization, and much stricter control of our recruitment practices.
Looking now at the current fiscal year, we expect stable sales year- on- year, non-IFRS operating income close to break-even with negative free cash flow. Following the closing of the transaction with Tencent, we expect to maintain a consolidated non-IFRS net debt position around zero. The 2025-2026 financial year should benefit from a solid back catalog, driven in particular by Assassin's Creed Shadows and the launch of Rainbow Six Siege X, which should lead to a strong increase in franchises' net bookings on consoles and PCs. Recurring partnerships, as well as the lineup, will include Anno 117: Pax Romana, the remake of Prince of Persia: The Sands of Time, Rainbow Six Mobile, and The Division Resurgence. Other titles will be announced at a later date. I would actually like to now play the latest trailer for Anno 117: Pax Romana, which will be released on November 13th.
If you want to be immortalized in all nakedness, here's a little lesson in greatness. Build it.
Discovering is your vocation. It's all about location, location, location.
Build it.
Where you come from is born.
Build it.
Find a religion or vine.
Or more.
Build it.
Promise your territories.
Do it.
Or keep them Celtic if you please.
Build it.
Sharpen your steel or lose your head.
I'd prefer Pax Romana instead. You will be fated.
In the current fiscal year, group expects to epects to return to positive Non-IFRS as operating income and free cash flow income generation in fiscal year 2026, 2027. We also expect significant content from it's core franchises for fiscals year 2026-2027 and 2027-2028. I'd now like to give the floor back to Guillemot to conclude our presentation.
Frédéric, thank you very much. In short, to conclude the presentation, I would like to just recall some main points that are worth remembering. As you've clearly understood, the video game market, that has been growing this year, has very mixed dynamics, especially for our core market, code game category, which has been down sharply down by 11% after post-COVID period marked by over investment in this industry with generating content, stiff competition for content. The market is now in a phase where it's getting back to normal. That means there is a significant drop in investment, and at the same time moderation, more moderate wage increase, there is also reduction in projetcs under develeopment. Our core market, consoles and PC, is also expected to be one of the key drivers for the industrys coming growth over the coming years. Were are well positioned thanks to our t hanks to our strategic refocus on our two key pillars, we're building upon the group's historical strength and growth opportunities, particularly in China.
In addition, as we discussed in our market analysis, mobile games continue to be an attractive development area for large franchise games. Given that context, we're continuing to transform the group towards more evergreen offers, as we mentioned. We will announce by the end of the year a new organization, one which is better adapted to player expectations and one which will allow us to further improve the quality of our games. The creation of a new subsidiary, coupled with Tencent's investment, will allow us to accelerate the development of our three key franchises, while at the same time significantly strengthening our balance sheet.
Last of all, we are investing, intensifying efforts to reduce costs, a new two-year target that reflects greater selectivity of investment and better and more efficient organizations. As you can see, we are doing everything we can to put our group on a profitable, sustainable growth trajectory. I have full faith in our ability to build a stronger, more resilient company in a core market that should return to growth. That, ladies and gentlemen, brings our presentation to an end. According to custom, I would now suggest dispensing with reading of the reports from the board and text of resolutions. Before continuing, I would also like to thank Ms. Laurence Hubert-Moir and Ms. Corinne Fernandez-Hendelsman, whose terms of office expire at the end of the meeting.
I would like to thank them both for their keen involvement in the work done by the board of directors and also for their fine involvement in the various committees on which they sat, because they occupied those positions with much vigor and keen interest. Before Frédérick goes into some resolutions, I would like Ms. Axel Lemaire and Mr. André Loeskrug-Pietri to please come and introduce themselves to the audience. Thank you very much.
moments. Thank you for your patience.
Ladies and gentlemen, dear shareholders, Mr. Chairman, I am delighted to be with you this afternoon. I am also honored by the trust placed in me by the members of Ubisoft's Board of Directors in proposing my appointment as an Independent Director. Ubisoft is a leading company in the video game industry. It's one of the few that combines creative excellence, technological innovation, and global reach, a company that is driven by talented and committed teams across the world, some of whom I've had the chance to meet, particularly in Montreal. I am well aware of the excitement that surrounds every new game release, and I'm aware of how a successful game represents, behind the choices of its creators and producers, the magic that stems from combining innovation, rigor, and creativity.
At a time when collective imagination shapes our world, Ubisoft has an ambitious vision for the future of recreational and interactive entertainment. The sector, the industry, faces demanding challenges, ensuring ethical and responsible development, protecting its audiences, especially younger ones, adapting to different cultural and social contexts, anticipating regulatory changes, and responding to the ever more complex expectations of multiple stakeholders. I would be honored to contribute to these strategic discussions of Ubisoft's Board of Directors. In that regard, allow me to briefly present my professional background. I was born and raised in Canada. I studied first at Sciences Po, and then I specialized in international economic law in Paris and London. Throughout my career, whether as a legal advisor or as an executive in the private sector, I've had the opportunity to work on the major transformations shaping our societies, particularly those related to technology and innovation.
As a member of the French Parliament and later as a Minister of State for Digital Affairs and Innovation, I led several key policies: digital transformation of public services, national AI strategy, digital inclusion, cybersecurity, personal data protection, and support for the French tech ecosystem. I also closely followed the issues facing the video game sector, whose cultural and economic significance I've always acknowledged, whether for our country or the rest of the world. Afterwards, I joined Roland Berger, an international strategy consulting firm, where I supported many businesses in their innovation, digital transformation, and sustainability initiatives. Since 2023, I have served as Executive Director in charge of CSR and sustainable development at Sopra Steria, a major publicly listed European company and leading digital services provider. I oversee areas such as climate strategy, diversity, and equal opportunity, digital accessibility, as well as the group's societal and inclusive commitments.
This journey has enabled me to develop strong analytical and interpretive skills, which I hope will be valuable to Ubisoft's board, especially in a context where the video game industry is rapidly evolving with the rise of generative AI, new player behaviors, and shifting and complex geopolitical balances. Whether it's about anticipating major trends, interpreting regulatory demands, or enhancing Ubisoft's reputation and appeal, I look forward to actively contributing to the board's work with the independent and open mindset that defines me, while paying constant attention to the company's best interests, as well as the best interests of its shareholders. It is both with humility and enthusiasm that I stand ready to work alongside you to support the balanced and sustainable development of Ubisoft, ensuring that its creative and economic ambitions rest on solid and responsible foundations. Thank you for your kind attention.
Thank you, Axel.
Now I'd like to introduce André.
Hello everyone. Ladies and gentlemen, dear shareholders, Mr. Chairman.
[Foreign language].
For me too. It's a great pleasure to be with you today. Speaking after a minister is always a tough fact to follow, but I'd like to sincerely thank the members of the board for proposing my nomination as an independent director of Ubisoft. Ubisoft is a French, European, and global champion. It is a major technological and creative company whose productions, talents, and ambitions echo across the world. It operates in a dynamic, demanding, and constantly evolving industry where speed, innovation, and technological mastery are key. I'd like to talk about me for a minute. I know my name is difficult to pronounce. I'm both French and German. Throughout my career, I've had the opportunity to explore these issues from multiple perspectives: industrial, entrepreneurial, financial, and scientific. I was born in Berlin. I was trained in Europe and in the U.S.
I started my career at Airbus, another European champion, on technical projects such as the A380, the double-decker plane. For about 15 years, I co-founded and managed various investment structures, including private equity and venture capital funds, supporting tech companies with strong potential for growth internationally. I did this in France, Europe, Africa, and Asia. I spent close to 10 years in China. In 2017, I did a 360 shift. I joined the French government as a Special Advisor to the Minister of the Armed Forces. We focused on things that weren't talked about at the time: strategic sovereignty and also European defense. My experience was extremely valuable. What am I doing today? I chair JEDI. JEDI stands for Joint European Disruptive Initiative. I like the name. It's an organization that works for the public interest.
Together with other captains of industry and research and technology organizations, we founded this JEDI initiative to act as a catalyst for disruptive innovation in Europe. We have about 7,000 state-of-the-art researchers, deep tech entrepreneurs, and industrial leaders from 30 countries. We work to support pioneering projects in digital technologies, space, quantum technologies, energy, and life sciences. All of these experiences have allowed me to gain a deep understanding of disruptive innovations, their strategic implications, and how to integrate them into sustainable growth trajectories. This gives me the hands-on experience I need. I believe that in this world, big bets matter. I understand the importance of scale and key challenges such as AI and also man-machine interfaces. In this sector, my experience matters, and this is the experience I wish to bring to Ubisoft's Board of Directors.
As an independent board member, I am deeply committed to a quality strategic dialogue between directors and executive teams. I also fully appreciate the importance of being independent, of having an independent and constructive perspective that focuses on long-term challenges, as well as value creation and total shareholder return. We operate in a very dynamic market with fierce competition. We've said that time and again. I believe that Ubisoft has remarkable strength. It has strong brands, talented teams, a capacity for continuous innovation that's well recognized, as well as a well-established global presence. It has studios across the world. We operate in a world of growing gamification in a lot of sectors, and this means huge potential for growth. I would be honored and happy to contribute to the growth of this beautiful company in these faster and faster times where we're seeing profound transformation in the video game industry.
Thank you for your attention and thank you for your trust.
Thank you, André. I will now give the floor to Frédérick. Thank you.
The ordinary resolutions concern approval of the company financial statements, the consolidated financial statements, and the special report of the statutory auditors and related party agreements, the appointment as independent directors of Axel Lemaire and André Loeskrug-Pietri, the renewal of the term of office of Claude France as independent director and of Michel and Christian Guillemot as directors, also the appointment of Ernst & Young Audit as statutory auditor to replace KPMG SA. These resolutions also concern the so-called ex-post and ex-ante votes relating to the remuneration of the company's corporate officers.
With regard to the ex-post resolutions, the information is provided in section 4.2.2 of the EORD, which includes details of the objectives and the level of achievement of the performance conditions, as well as the scales applied regarding Yves Guillemot's annual variable compensation. The five executive corporate officers did not receive any long-term variable compensation for FY 2025. Regarding the resolutions referred to as ex-ante, the information is provided in section 421 of the EORD, which sets out the remuneration policy applicable to the directors, the Chairman and CEO, and the COOs. For information purposes, its application for FY 2026. Finally, also under ordinary resolutions, we propose that you authorize the company to continue its share buyback program, this resolution being linked to the authorization given to the board to proceed with share cancellations, which is submitted to you as an extraordinary resolution.
Regarding extraordinary resolutions, the board of directors is submitting a number of so-called financial resolutions designed to give the board the power to carry out capital increases quickly and flexibly should market opportunities arise. Resolutions 24 and 25, in accordance with the opportunity provided by the attractiveness legislation, delegate authority to the board of directors to set the price to which a maximum discount of 10% may be applied. It is understood that the price referred to above refers to the share price and/or an average share price established on a date as close as possible to the date of the determination. The board also proposes resolutions relating to employee share ownership aimed at offering Ubisoft employees competitive packages by allocating a portion of their remuneration in shares or allowing them to participate in increases in the company's share capital.
We are submitting to your vote three resolutions allowing employees to participate in capital increases with a maximum discount of 15% up to a maximum of 2% of the capital. We are also proposing that you vote on two resolutions offering the possibility of implementing bonus share plans on the one hand for employees, including members of the Executive Committee, and where applicable, executive officers of subsidiaries up to 5% of the share capital and for executive officers of the company up to 0.3% of the share capital to be deducted from the 5%. These percentages cover the needs for three financial years and are intended to promote optimal use of the budget in a highly competitive environment. The allocations are subject to a vesting period of at least three years for employees and members of the Executive Committee and at least four years for executive corporate officers.
They will be systematically and fully accompanied by performance conditions assessed for members of the Executive Committee and executive corporate officers over a minimum period of three years or financial years. It should be noted that the performance conditions for members of the Executive Committee will be 80% aligned with the performance conditions or indicators applied to executive officers as defined in the executive officer compensation policy. Finally, it is proposed that you amend the bylaws to allow the board to proceed when necessary by written consultation. We are aware that the wording of the resolutions is somewhat complex because of the legal language, and therefore we are available to answer any questions you may have. Over to you, Yves.
Thank you, Frédérick. Now let's hear from the statutory auditors. They will now read a summary of their reports.
you, ladies and gentlemen.
Thank you. Ladies and gentlemen, dear shareholders, thank you. On behalf of the College of Statutory Auditors, I'm pleased to present to you the reports we have prepared for your attention, which relate to our audit opinion on the annual financial statements of Ubisoft Entertainment, as well as our opinion on the consolidated financial statements of the Ubisoft Group. My colleague will then present the report relating to related party agreements. These reports have been made available to you by the company and are included in the 2025 EORD, which you have received. We will now provide a summarized reading of these reports, which relate to resolutions one through four submitted for your approval. Regarding our report on the annual financial statements, you can find it on page 310 of the EORD. We issue an unqualified opinion on the financial statements submitted for your approval at this AGM.
In the basis for opinion section, we present the key audit matters which, in our professional judgment, were the most significant for the audit. Regarding the annual financial statements, we're dealing with the evaluation of internally developed commercial software. We've analyzed the impairment testing procedures, whether in terms of internal control or verifying consistency of sales forecasts with a five-year business plan. We have also verified that appendices provide appropriate disclosures, and you can find this in note 19. Also, the evaluation of equity investments for which we have analyzed impairment testing procedures to ensure that the value in use was not overestimated. We have also verified disclosures in the annexes. You'll find this in notes 17 and 23.
In addition, we also confirm that our report includes all of the legally required information, particularly regarding auditor independence, specific verifications, the information provided in the management report, the corporate governance report, as well as the other legal disclosures. With regard to our report on consolidated financial statements, which you can find on page 277 of the EORD, we issue an unqualified opinion on the consolidated financial statements. The key audit matters outlined in our report include, on paragraph justification appreciation, we show the key audit matters which are outlined in our report. Regarding the consolidated financial statements, we're dealing with the evaluation of internally developed commercial software. We have analyzed the impairment tests and testing procedures, whether in terms of internal control procedures, verification of consistency of forecasts with the five-year business plan. We have also verified that appropriate disclosures were provided in the appendices.
Also, evaluation of goodwill and trademarks. We have assessed the modalities for depreciation tests to assess recoverable asset values. We have also verified that the appendices provide appropriate disclosures. You'll find this in notes 20 and 22. Lastly, evaluation of revenue recognition for games with service components, as well as license agreements. We have analyzed the various contracts and verified their accounting treatment. We have also made sure that the appendices provide appropriate information in notes 4 and 6. You'll find the details in our report on the consolidated financial statements. We confirm that the report also includes all the legally required information regarding specific verifications. There are no comments regarding the management report from the Board of Directors. All of the information pertaining to legal and regulatory obligations and also management and auditor responsibilities, not forgetting the Audit Committee's report, is included.
We confirm the company's compliance with the ESEF, or European Single Electronic Format, for presenting consolidated financial statements implemented by the company. That concludes our reports on the annual and consolidated accounts. Thank you for your attention. I'd like to hand over to my colleague regarding the related party agreements.
Thank you, Julian. I promise I'll be shorter. Regarding resolution four submitted to the AGM for a vote, we issued a report on related party agreements and commitments. You'll find it on page 316 of the EORD. I'd like to remind you that our role is to outline the features, terms, and reasons of interest for the company regarding the related party agreements without opining on their usefulness or merits. It is up to you to assess their relevance before approval.
In this report, we inform you that no new related party agreements or commitments were reported for the past financial year. Regarding our work, we have not identified any other framework that should be submitted to your approval. Our report includes an agreement that was already submitted to your approval. I'm referring to the framework agreement signed between Ubisoft Entertainment, Guillemot Brothers Ltd., Tencent, and other parties. This agreement dates back to September 6, 2022. Based on the fact that the various conditions have remained unchanged throughout the fiscal year, I will spare you an exhaustive read because the conditions haven't changed one bit since then. I'd like to remind you also that a number of other reports have been issued pertaining to the draft resolutions under the extraordinary part of this AGM, particularly when it comes to capital. These reports have been available to the company.
We have no material comments to make regarding the information submitted to your approval. Thank you so much.
Gentlemen, thank you. I would like to thank our statutory auditors, KPMG and, of course, Fourvius-Mazars. They will now have to leave us, but we have worked with them quite well over the past few years. Thank you very much for your work. We are now going to move on to debate and discussion. This is an opportunity for you to ask any questions you may have. If you do have a question, please introduce yourself first. The floor is yours, ladies and gentlemen.
Good afternoon, Sensa. I am an individual shareholder. I have a number of questions for you and a comment if I may. First, for Assassin's Creed Shadows, can you give us the overall budget for production? Star Wars Outlaws, two years ago, was said to have cost a few hundred million euros in production. There's a lot of talk, a lot of excitement about production costs. Can you please just give us a final figure for that and current sales as they stand? That's my first question. Second, Star Wars Outlaws, what have you learned from the failure in terms of sales? Have you learned anything in terms of pricing, in terms of marketing? What about consoles? Console gamers tend to be around 40 years old. Is there maybe an age issue? What about the upcoming lineup? Last year, you said that there was going to be 1 billion.
With Star Wars Outlaws and Assassin's Creed Shadows, I imagine that the game portfolio in production has probably a lot less now. Could you shed a bit of light on what upcoming games you have and how the portfolio is going to evolve? One question on finances. Ubisoft has roughly EUR 1 billion to pay back in convertible debt. This is for 2027, 2028 coming through. We saw an impact in terms of profit warnings, and there was a bit of a drop, then there was an uptick following Assassin's Creed Shadows. This is probably helped by the new subsidiary created with Tencent. What are you going to do to try and bring equity back to the company? About Tencent, when will the operational side of the subsidiary come through? What sort of money is going to be allocated to the new subsidiary?
How is it all going to help pay back the overall debt? Now, one comment, a comment for the EORD. I have been a shareholder for a number of years and gamer for many more than that. For the past two years, it's no longer really available for us to consult. I understand certain reasons that you've given, but it would be much better if we could have just a few paper copies available for us to read through here.
Thank you very much for your questions. To answer the first one, we don't disclose production costs. It did cost over EUR 100 million. We will say that, but we don't give any final costs. We also invested heavily in the engine. For Star Wars Outlaws, we didn't reach our sales targets. The game suffered from a number of items.
First, it suffered from the fact that it was released at a time when the brand, the brand that it belonged to, was in a bit of choppy waters. The game had a few items that still needed to be polished, and they were polished and debugged in the early weeks after release, but it did affect sales volumes. We did heavily improve the game by troubleshooting and debugging in those early weeks. When it will be released on upcoming consoles such as the Switch
2, it will have a new version of the game. Improvements on the game are not finished, and we will continue improving it for future releases. As for the upcoming portfolio, we have already given some insight into some projects that are in the pipeline. Frédérick will give you as much information as possible, but generally, we don't give all information this early in the game. We prefer giving you more information just before the release date to make sure that we do have a good handle on how we market those games. Now, as for debt and investment questions, I'll hand over to Frédérick for that.
You're right. For the upcoming game lineup, we have some major productions for our leading franchises, which will come through in our 2027-2028 fiscal year.
Again, we can't give away too much information today, but we are taking the time to make sure that those games will be released with the top-level quality that we're looking for because the market is becoming more and more selective, and it is more and more important for these sorts of franchises to really be released with the sorts of innovation and game experience that people are looking for.
You asked a question about Assassin's Creed Shadows' sales to date. We can't disclose them. They will come through in the July 22, first quarter, first half figures. The 8th of May was just a few weeks after release. In terms of game players and overall sales, it was the second game in the history of the franchise, so it started really well.
As for our debt scheduling, we've got about EUR 1.9 billion in debt for the first five years, and end of March, we should have enough cash available for just under EUR 1 billion. Increased equity from Tencent is going to be about EUR 1 billion as well, EUR 1.2 billion to be more specific. With that, we should be able to refinance debt or either pay back debt again with maturity sitting between two and three years. That gives us some level of visibility. In terms of capitalization or recapitalization, we've got EUR 1.2 billion coming from the subsidiary, and we've also got solid equity, so there's no real issue with our equity levels. Sorry, there's a question not on microphone. For our consolidated accounts, we're looking at EUR 1.8 billion.
As to your question about allocation of Tencent capital, we have said that we will be able to get back to a net debt level non-IFRS of nearly zero. We have had some increased financial pressure over the past years, and that will be offset by that. Some of that money will go back to pay debt, as I've said, and some of the money will go into assets. It will be to fund the entities that we're creating, so Far Cry, Assassin's Creed. We want to see them get back to revenue levels around EUR 500 million and EUR 1 billion on an annual basis, and we want those brands to be more and more evergreen and with more recurring income.
Some of the money, because again, some of the money will be taken back to the parent company, but it will be used selectively for either future developments, other major brand names. We have Ghost Recon as just one example for our first-person shooter-type games. We also want to boost our live games. You have The Crew, Anno, For Honor, just to name a few once again. We are going to continue working selectively on new brands, new brands built upon new tech to really tap into a few key segments. As you know, we've got some iconic brand names in our catalog that we can either activate or reactivate with little investment. This goes to the remake of Prince of Persia: Sands of Time, which is going to be released very soon, or even Splinter Cell later on in the game. Sorry, another question off mic.
Sorry, and about the UID. Yes, you're right. We have tried to go as digital as much as possible with as little documents being printed as possible, and we've taken your comment on board. We want to try and go as digital as much as possible without printing too much, and we will take your comment on board in light of that.
Good afternoon, Charlequet. I've been an individual shareholder for the past 20 years. I am very unhappy with the catastrophic share price with minus 40% over 10 years. I'm very disappointed with everything that we have been seeing of late. I've got real concerns. I don't recognize Ubisoft that I once knew in the past. About the most recent events, how is it that the head of the group or the head of HR saw nothing? I mean, we operate in these buildings, and everything is known.
Everyone knows what's going on. How is it they did nothing? They didn't stop it because it doesn't help the group with its levels of creativity. How is it that nothing was seen and nothing was done? Now, how can we tackle increasing prices, the fact that we have gamers who are becoming more and more demanding? It seems like a never-ending race. When a game fails, it seems like this is going to bring the company down. Third question about competition. There's a game that a lot of people have been talking about, Valorant. A lot of people have said good things about it, and I'd just like to know what you think of it. Is there anything good that Ubisoft could learn from that? Really, what's your opinion on this game? It seems like all gamers love it.
If they love it, that means that it's probably going to be a drop in sales for Ubisoft. What is your take?
Thank you for your questions. The company was not found liable for any of the claims that were taken against the company for misconduct. Yes, we are extremely sorry for what occurred, and we have put in place, we put in place the second we heard of what was happening, additional systems and additional mechanisms to ensure that information could be reported up more effectively for any sort of cases. We are keeping a very close eye on this to make sure that it will not happen again. To answer your question about the games, yes, games cost a lot to make. There is a lot more risk out there because it is a more competitive market.
There has been a lot of investment in the market since COVID, as we mentioned. Over two years, there was an almost four-fold increase in development investments. A lot of new studios, a lot of games were released. That put a lot of pressure on everyone in the industry, particularly for those with evergreen games. Evergreen games are games that constantly turn revenue every year, like Rainbow Six Siege. That's a perfect example. The company has invested heavily in its ability to develop these sorts of games, but it's not easy. Some of the games work, some don't. Some sell well, some don't. It is an investment that we have to do to ensure that we will have a couple of those games well-rooted in the gaming environment so that we continue to get revenue from them. We've been working on that.
It has been quite an interesting time for the company, and I hear that you're not happy with the share price, and the board is not happy with the share price either. We're doing our utmost to see the share price increase as soon as possible. For the other questions, I'll hand over to Frédérick.
Just talking about Valorant. You're right. It's a very good game. What we are doing is we are looking at all the different operators on the market for multiplayer games, for first-person shooter games. If you look at Rainbow Six and other games of that same ilk, it's exactly what we're trying to do. Valorant is a top five game. Rainbow Six is a top 15 game. What we want to do with this game is have it in the top 10, then in the top 5 eventually.
For that, our teams have been working on completely overhauling our creation system so that we can have more content more regularly released with a better-suited gaming mode. We've also looked at our business model. There's now free access to get more players into the game. Something that we could learn from Valorant is that we have worked on enhancing the overall offering for our gamers. There's a lot that can be done, considerable growth potential, especially for Rainbow Six Siege. That's what I can say for that.
Valorant is a game that we're looking at in particular because it's been highly successful, not just in the Americas and Europe, but also in China, where it has recently been launched. Rainbow Six has been given the green light for release in China.
Our aim is to continue improving on that, to improve on what we already have within the game, to really bolster the brand across multiple geographies. It's quite an interesting benchmark for us because it's a solid performer.
Good afternoon, Mr. Jean Derr, individual shareholder. I do have a question for you about the share price and overall capitalization. We're looking at EUR 9.52 capitalization at EUR 1.26 billion. You said that the subsidiary with Tencent is going to be about EUR 1.16 billion with a EUR 4 billion market cap plus an extra EUR 1 billion. How can you explain that massive mismatch between those figures? One other point, apparently, there's going to be an independent expert for Nixie who is going to evaluate that new entity. Will that information be sent out to all shareholders? In terms of items that could be a major issue, we've got competition in Europe.
Do you think that there are going to be certain barriers put in your way? For the second resolution, for our current levels, you said that there is going to be - EUR 248 million going up to over EUR 400 million. With Tencent, given that they're going to have 25% of a 25% stake, how is the EUR 93 million in profits going to be split between them and Ubisoft as it currently stands? I do have another question about short selling. We see a lot of short selling. Is it specific to Ubisoft? Is it something in the French stock market? How are you going to account for that? It seems quite huge. I think we're looking at 4.93%.
For the overall market cap, it is EUR 4 billion for the entirety of that new entity.
When we look at the value of the license that is going to be paid out on sales, we're looking at around EUR 5 billion market cap. When we look at the current share price of Ubisoft, there's a great expectation for the company to get back into solid profit and solid cash flow. These are things that we are working on. Mr. Guillemot spoke about that in the strategy presentation. We're going to leverage our key brands, which are already well positioned and have seen some solid awards. This should help drive future growth. Also, the live games are going to help us with recurring revenue streams and therefore boost cash. In addition, we also have our cost reduction in the first phase, second phase, EUR 100 million, so that by next year, we should be back in growth, not just for our top line, but also for our bottom line.
They're the key items that are being accounted for in that market cap that we presented. We are going to continue to fully consolidate the entity that is being created. It will all be reported in our consolidated accounts. Part of the profits for a minority stakeholder will be given to the minority shareholders, and that will be in the UID for next year.
Now, in order for the transaction to go through, we need approval by a number of authorities. That is currently underway. We are in the process of providing information and data as required by those authorities.
We expect the transaction to come through by the end of the year. It's a minority investor, a passive, non-controlling minority investor, and that's something that must be factored in by the competition authorities. Regarding your question about Finexi, the board of directors has ordered that report. The independent expert confirmed in May that the value extracted by this transaction is fair vis-à-vis shareholders. The report has been given to the board and will not be made public. I hope that answers all of your questions. Say again? Short selling, yes. That's the ballpark figure. That's the order of magnitude, and that has remained pretty stable over the past year.
Nothing to write home about on this particular point.
Hello, Mr. Guillemot. Brice Guetto, I'm a recent shareholder, but I'm a long-standing user of Ubisoft wares. I have a couple of questions. First of all, regarding Assassin's Creed Shadows. There's been a lot of controversy regarding that game. How do you respond? Ubisoft has been accused and criticized for this wokist trend. I mean, this is happening in 16th-century medieval Japan, and the main character is an African samurai. That's a bold choice by Ubisoft. In the story, he falls in love. That's one of the possibilities of the game. He gets to fall in love with a transgender character. So woke or no woke? How do you explain Ubisoft's deteriorated reputation, which may actually challenge the foundations of your organization?
Is that a show of openness on your part, or are you going to backtrack or backpedal on that leftist political agenda? Is there room for the entertainment world for this kind of stance? Secondly, what about accusations that video games are being accused? There's this petition with thousands of signatories. How do you make sure that games remain playable and accessible even after server support is discontinued? This petition was initiated in 2024 after Ubisoft announced the end of service support for The Crew, a game bought in 2010. Now, in 2024, the servers have shut down, and the game can't be played anymore. Do you support that petition? At the end of the day, when players buy an Ubisoft game, do they own it, or is there a chance that they might no longer be able to play the game years later?
Thank you for those questions.
Let me start with Assassin's Creed Shadows. There's one thing you need to consider. When you get to play the game, you understand that the game is full of characters, and the characters actually blend in with the game. Obviously, with regard to this particular game, what was our goal? We wanted to showcase characters with heroic journeys. Everybody wants to play a hero's journey. You shift your circumstances, and you become something more. It's a very powerful expectation from games. This is a hero quest, and it doesn't just apply to Ubisoft or Mega Series. This is an actual character. This is someone who really existed. Showcasing that character has been extremely successful. That is why we decided to tell that story. We wanted to tell a different story. Regarding the petition, we operate in a market.
Whenever we release a game, we provide a lot of support for that game. We also provide a lot of services to make sure that the game is accessible and remains playable 24/7. We provide information regarding the game and how long the game can be played. Players and buyers are forewarned that eventually the game may be discontinued. Now, what happened with this game? There was a EUR 1 fee proposed to all buyers of the game. For just EUR 1, they got to buy the next version. EUR 1. It's not a whole lot of money to be able to continue playing a game. We also announced that the game would be available offline in the future so that players could continue to play it. This is an issue that we've been dealing with. This kind of issue is not specific to Ubisoft.
All video game publishers are faced with that issue. You provide a service, but nothing is written in stone. At some point, this service may be discontinued. Nothing is eternal. We are doing our best to make sure that things go well for all players and buyers because obviously, support for old games cannot last forever. That's an issue that we're working on. That's something that the industry at large is working on to minimize impact on players. Clearly, that's something you need to factor in. The lifespan of a piece of software, whenever there's a service component, eventually, services may be discontinued because the software may become obsolete over time. A lot of tools become obsolete 10 or 15 years down the line. They're no longer available. That is why we release a new version. We have version two and then version three.
Clearly, this is a far-reaching issue, and we're working on it.
Hello. My name is Jean-Yves Nolland. I'm an individual shareholder. I'm also an employee. I have a question. Considering the high production cost of AAA games, which require significant sales in order to ensure profitability, would it be strategically important, and is that on the course for the company, to explore developing AA games with smaller production budgets and shorter production cycles? This would help diversify your portfolio, and this would also mitigate financial risks. Thank you.
Thank you for your question.
it planned to have two types of projects?
Yes, we're looking at two different kinds of projects. There are games such as Anno, for example. It's a smaller budget than blockbusters. Riders Republic, same thing. There are other games such as Rayman. All those games have smaller budgets. This means higher profitability levels. In other words, we can achieve those profitability targets faster based on the level of sales. As we said before, more and more, we're looking at games that can be played and replayed. We'll test the gameplay on the market, and the iterations will depend on the KPIs for those various games. The initial investment will be rather limited, and this means we get to develop more different kinds of games, and this will help diversify your portfolio indeed. Thank you so much for your questions. Now, we will now confirm the final quorum.
The number of ordinary shares outstanding with voting rights comes to 132,598,642 shares. Based on the attendance sheet, there are 1,891 shareholders present, represented or having voted by mail, representing a total of 79,358,261 shares with voting rights. That's 59.85% of the shares. The quorum required for the AGM to validly deliberate both in its ordinary and extraordinary parts is therefore reached.
will now proceed to the vote on the resolutions.
We're going to start voting on the resolutions. You're familiar with the voting device. It was given to you as you came in. We will vote on each of the resolutions, and we will display on the screen a summary of those resolutions. Frédérick will read out the results. I'm going to ask the scrutineers to join us on stage for verifications. In a minute, we will start the vote.
Live at the MGM Music Hall in Boston, Massachusetts, we make some more. Welcome to the Rainbow Six Invitational 2025. Boston, are you ready to make history? Gender war begins now. It is her for Company Academy. It's so wanted.
Oh, damn, beautiful foot. Cyber isn't going to let him just sit on this.
They're clearly playing. It seems like Furia and Nolan just have an open, but they've lost a couple. Philippe wants to see...
Oh, Phoenix.
Steal that round for Furia. Things working. A triple for Dream. Philippe Tenait and Philippe hopes now. Numbers in a disadvantage for the...
It is on the floor. Pressurization complete.
First match looks to be locked up. Speed ahead. Brilliant on the ball. He won. Unbelievable stuff from the Brazilian. He's all hoped to be. He's been here before. He's got to step across. It's all about his hard work. He's won. He wins it out. Bruno's going for the plant.
Oh, three.
Down towards his last 30 seconds, breaking his maneuver in here. Shy in the back again. Shycho is going after him. Finally finds himself down now. UTIS has got a clutch up big. Andy, they see the swing.
The waiting.
The waiting. Solitaire is down. Bruno is up.
He's also down.
[Foreign language]
This was the global finals for Rainbow Six, and the winners have shown how good they are. On the screen, you will find the instructions for using the voting device. Press one to vote in favor of the resolution. Press two if you're against. Press three to abstain.
Resolution one, approval of the annual financial statements for the fiscal year ended March 31st, 2025. Please vote.
The vote is closed.
Thumbs up. Resolution carried. Resolution two, allocation of the net income for the fiscal year ended March 31, 2025. Please vote.
The vote is closed.
Thumbs up. Resolution carried. Resolution three, approval of the consolidated financial statements for the fiscal year ended March 31, 2025.
The vote is open.
Please vote.
The resolution is adopted.
Resolution carried. Resolution four, approval of related party agreements and commitments as part of the special report from the statutory auditors. Please vote.
La...
Resolution carried. Resolution five, approval of the report on remuneration for corporate officers. Please vote. Resolution carried. Resolution six, approval of remuneration benefits paid or granted during the fiscal year to Yves Guillemot, Chairman and CEO. Please vote.
La résolution est...
Resolution carried. Next resolution, approval of remuneration and benefits to Claude Guillemot, Deputy CEO. Please vote.
Resolution has passed. Moving on to resolution eight, approval of compensation for 2025 for Mr. Michel Guillemot. Voting is now open. Resolution has passed. Resolution nine on compensation for Mr. Gérard Guillemot. Voting is open. The resolution has passed. Resolution 10, compensation for Mr. Christian Guillemot. Please vote. The resolution has passed. Resolution 11, this is approval for the compensation policy applicable to Chairman and CEO. Voting is now open. La résolution est adoptée. Resolution has passed. Resolution 12, this is compensation policy for Deputy CEOs. Voting is now open. Resolution has passed. Resolution 13, compensation policy for directors. Voting is now open. La résolution... Resolution has passed. Resolution 14, appointment of Axel Lemaire as independent director for two years. Voting is now open. La résolution... The resolution has passed. Resolution 15, appointment of André Loeskrug-Pietri as independent director, also for two years.
Question in the room, why is it only two years? This is just standard practice. This is a way of giving new board directors the time to prove their worth on the board, and then it will be renewed after two years. Voting is now open. Resolution has passed. Resolution 16, the renewal of Claude France's appointment as independent director for four years. Voting is now open. Resolution has passed. Resolution 17, the renewal of Michel Guillemot's appointment as director for a four-year term of office. Voting is open. Now, the resolution has passed. Resolution 18, renewal of Christian Guillemot as director for four years. Voting is open. Resolution has passed. Resolution 19, this is the appointment of a principal statutory auditor to replace a principal statutory auditor to replace KPMG. Voting is now open. Resolution has been adopted.
Resolution 20, to grant authorization to the board of directors to continue its share buyback program. Voting is now open. Resolution has passed. We now move into extraordinary items. Resolution 21, authorization is to be granted to the board of directors to reduce share capital by canceling their own shares held by the company. Voting is open. La résolution est adoptée. Resolution has passed. Moving on to resolution 22, delegation of powers to the board of directors to increase share capital through capitalization of reserves, profits, premiums, or other amounts limited to EUR 10 million. La résolution... Resolution has passed. Resolution 23, delegation of power to the board of directors to increase the share capital with preferential subscription rights. Voting is now open, limited at EUR 5 million. La résolution est adoptée. Resolution has passed.
Resolution 24, delegation of power to the board of directors to increase share capital by issuing shares with a limit of EUR 1 million through a public offering not under the first paragraph of article L411-2 of the Financial Monetary Code in France. Voting is now open. Resolution has passed. Resolution 25, delegation of powers to the board of directors to increase share capital without a waiver of preferential subscription rights by public offering. The vote is now open, limited to EUR 1 million. La résolution est... Resolution has passed. Item 26, delegation of powers to the board of directors to issue shares in order to remunerate contributions in kind granted to the company with a waiver of preferential subscription rights for shareholders, a limit of 10%. Resolution has passed.
Item 27, delegation of power to the board of directors to increase share capital by issuing shares for the group savings package, 2% capital. Voting is now open. La résolution... Resolution has passed. Resolution 28, delegation of power to the board of directors to increase share capital for employees and executives, a limit of 2% of capital without preferential subscription rights. Voting is open. La résolution... Resolution has passed. Resolution 29, delegation of power to the board of directors to increase share capital, reserved for categories of beneficiaries under an employee share ownership offering, limited to a total of 2% of overall capital, again without preferential subscription rights. Voting is open. Resolution has passed. Resolution 30, authorization to the board of directors for 38 months to grant free ordinary shares to employees. This includes company executives, not for directors. Voting is open. Resolution has passed.
31, authorization for the board of directors for 38 months to grant free shares. This is for executive corporate officers limited to 0.3% of overall capital. Voting is now open. La résolution est approuvée. Voting has passed. Resolution 32, amendment of article 10.2 of our bylaws. This is for the written consultation of directors under the French attractiveness law. Voting is open. La résolution est adoptée. Resolution has passed. Resolution 33, powers for formalities. Voting is open. Resolution has also passed.
Thank you very much for your votes. I would like to thank everyone who is here today for your support, your employees for being so passionate, committed employees, and all shareholders for being so loyal. Your ongoing support is essential for our ongoing success, and this brings our session to a close. Thank you very much, ladies and gentlemen.