Good morning, good afternoon, everyone. Welcome you to this combined annual meeting of the company. This meeting takes place at a critical juncture. Our company was founded in 1986, and ever since then, history has been built around the seams of the result of a combination of creativity, technology, and that legacy has two real experiences likely to surprise the region and indeed invest on the lasting base in 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 will be looking back on the last year, but also we will look not just at the events but the years, and I will also talk about the group's mission. Then we will share with you the years to come.
We will now put together the view of this meeting. It will be for me to Chair the meeting as Chairman of the Board of Directors. We could have four scrutineers, a number of those, Christian Guillemot and Jeanette represented by Taylor's agreement. I will also suggest [Thibault] as Ubisoft Administrative Secretary of Directors to be the Secretary of this meeting. Having said that, the meeting is open. We also have here members of the board, [Non-English content] . We have [Eric], Officer, and Frédérick Duguet is, of course, the company's CFO. We have two documents. They were made available in the standard timetable and in laws and regulations. All the documents are also available not just on this desk but also available online or in paper version as well.
Version has been published in the official gazette on the 11th, supposed to add new to the agenda or indeed new resolutions. We have a provisional quorum. We have counted out and we haven't or represented or having voted. 66,082,408 shares out of the 138,701,386 shares of the company and represent of the total number of shares. During this AGM, as we have more than one quarter of the shares represented, we are in a position to on the agenda. The final number finalized later on. Regarding the meeting itself, we will start the group's performance, our strategy, and indeed our objectives for the years 2027 and beyond. Will be, of course, treated upon. The auditors will group their work, and then we will have a Q&A session. Of course, by then we will have the final quorum before we can vote on the resolutions. Right then.
Let us start with the agenda. First of all, if we can move on. What I would like Video game market. [inaudible] here will then tell you about the year's financial performance and indeed our financial objectives. On the next slide, we find that the video gaming is stepping up. Video game market has confirmed its return to growth, had 2021 and 2024. Growth is resuming to the tune of, it is expected to resume to the tune of 6% per year on average between 2024 and 2028. Indeed, by that year, by 2025, started off with a boost in the post-COVID period, with an annual average growth of 15% per year between 2019 and 2021, 2024. That was the stable option last year, to do with, of course, the stream players becoming more selective.
As I said, 2025 saw a resumption of growth, significant $200 billion in revenue. There is a very powerful PC market, up 12%, and that is because of major AAA launches. The consoles market is now returning to growth as well, and that was mostly driven by Switch 2, very successful there. The mobile was by China. The market to grow by the PC and growth per year. That sound demographic fundamental of players has grown from 300 million - 6 billion in 2025, and that is expected to keep growing, get past four by the year. This is a very positive starting point, and you will see this in the presentation to come. Starting with our core segment, namely consoles and PCs, they account for most of our revenue. The peak of 12.
After now expecting 5% per year growth in 2028 with about $100 billion in revenue expected time compared with $82 million and $84 million. More to the point. That, as I said, is driven by three main segments, three components have been picked up after a period of stabilization. In addition, that is downloadable content and is the largest single source of income for that. Subscriptions. Subscriptions had growth at the knee and Microsoft, you see a growing number of subscriptions. A good percentage of this meant focusing our capital spending at our historic franchises, those that are the most successful. We are well-positioned because we have been refocusing our activities to the— though not individually. Having said all long-term trends in the market, there are five strong factors that have really been decisive. The people have been driven to plays even though the price of components is going up.
Yet there is a real demand and appetite on the part of players for remakes and remasters. We have seen a number of new. Of course, means that we have licensed as it were, and they are enjoyed not just by new generations. The market has become more selective, have been getting and they watch as those that people will be buying excitingly. Fourth big factor is the generated content economy is now becoming the cornerstone of players themselves become creators, but they also enhance the visibility of our own brands. When they become involved, they can talk about them on. Of course, this advertises our— we have been cost relentless. Relentlessly, of course, there was a period of over-investment during the peak period and discipline in capital allocation, and indeed, capital being very carefully scrutinized. Structure to make sure that in line with our needs.
Five factors confirm that our brand, a demand for high creativeness and strict financial discipline all the way with the new. Anyway, let us move on to line development, strategic development. Our strategic pillars, and that has been confirmed. On the one hand, we propose to regain leadership on the segment of adventure games in open worlds. Then we will pursue our strong headway in native service games. That is games that already exist, but have come. The market brings to players' universe that is worth about EUR 25 billion, and that should create significant technological high entry barriers. On this market, we can focus on key franchises such as "Assassin's Creed" and "Far Cry," "The Division," "Ghost Recon" brands. In that segment, we propose to keep offering new immersive experiences, bringing players into our universes. There is also reach audiences, especially by player experiences, world games.
And of course, we are expanding our presence on native games and on experiences designed to engage longer, sort of a captivating gameplay, rewarding progression, but also with social interactions, frequent updates of the content. Our team updates on a regular basis. That is worth about and has those old, largest in terms of, well, in both of, in terms of numbers of players. You have to see that these players are played not just in, well, played around the world. In segment six, make its inroads in China. One of the big games, The Division, indeed is on the, in the abilities on this sort of— we also make in this fast-growing market by expanding audience, but also by capitalizing launches.
And of course, as you know, some launches are already in the pipeline, and we have a new brand called March of Giants. As soon as this Friday, you will find reviews of that for that new brand. Anyway, the strategic focus of aspects of recurring income also are making technologies and of course, the idea is to competitive edge. We have our Anvil and Snowdrop that have been recognized as the best game engines in the world. The market of AAA games lastingly more selective and more competitive when you have an outstanding AAA making it. Its finance is greater than ever. Indeed, in that context, we are major overhaul, and that is to in this field. Then, of course, lasting and sustainable. We have three lines of with the houses. I will tell you more.
We reviewed upwards of seven 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. Then another adjustment in volumes, headcounts, and costs. We have closed a number of studios, and we have struggled. This has had financial results remain the same. Again, as I said earlier, our goal is to regain leadership on the segment of adventure games in open worlds and make, as I said, also headway on native games. A few words about the organizational change in governance. What is 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 organization units and now the creative houses have their own decentralized sense.
We have these creative houses that have been operational forces of the group, dedicated lead studios. We have therefore including Vantage Studios. That is lock-in counterpart or creative network, and that is a network of partner studios provide top quality production and expertise, but they can also lean on core services that is shared and standardized services for production and technology. You provide technology, we provide infrastructure, and indeed, operations that enable every single brand, every single team to focus on its core business. Then, at headquarters, we are carrying our long-term strategy by being very strict in capital allocation. So with a simpler and decentralized structure, we should find the agility and creativity to enable Ubisoft to be a leader in this. So, let us look at these creative. They have their own dedicated expertise and creative genres. You have development, own go-to-markets.
They are fully autonomous, both in creative. As I said earlier, Vantage Studios houses run by Charles Guillemot, and his purpose is to grow franchises, Assassin's and Rainbow. We expect each of these to generate EUR 1 billion in revenue. 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 combine to support Vantage Studios. The second creative house is driven by Chris and it is dedicated to competitive and cooperative games, and they are focused on battle games. You have many games taking place in a conflict environment. You have such brands as Ghost Recon, Splinter Cell, The Division, and March of Giants. The supporting studios are the Massive Studios in Sweden. We have Massive Studios in Paris, in Toronto, and also in Montreal.
The fifth creative house is, and its purpose is to operate well-selected live experiences. Also, it brings together Brawlhalla, For Honor, Riders Republic, Skull and 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 creative house turned to a fantastic universe, immersive narrative universes, and that is driven by Anno, Beyond Good & Evil, Might and Magic, Prince of Persia, and Rayman, working with the support studios in Montpellier and Milano. Gentlemen, good progress on. The fifth creative house is also Julien Bares, and it reinforced and familial are entirely including Hasbro, in the dance, the Ketchapp portfolio, and indeed the Idol Kolibri. The Kolibri Games studio in Germany, the Ketchapp studio in Abu Dhabi. Organization, you have these differentiated approach for each brand-centered, focusing on the expertise of our team.
Specific experience with each creative house is specialized segment which it fully masters, and of course, there is the competition segment by segment fierce. A few tangible results of this mission. First launch of the very, is our ability to attract new and high-level talents. Work of Assassin's Creed IV: Black Flag Resynced. It did extremely well. The commercial, very successful, it surpassed our annual expectations. First 14 units sold, and it was also very much applauded critically, as with four and on OpenCritic.
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What we indicate it's a very high level. Recorded overseas sales for the game sell much, but they are driven by the U.S. and Chinese markets. China, where we are beginning to see much higher penetration. Concrete illustration of the growing segment, which we are going— our new high support of this first signal, a tighter that can deliver momentum or capacity to attract. We saw that with [Russia], 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.
We had seen this notion of a high proportion of boomerangs in the last three months. So these, I think because when they come back, they already had. Day one, they can start working on projects they are familiar with, engines that they are familiar with, and also cooperative AI that is hugely advancing, which is a major disruption that should allow Ubisoft to grow and to grow them.
This on the adoption, which is a true technological revolution of video games, more specifically. Regarding the game experience, last novelty, a prototype illustrating can provide in terms of gameplay. Sofia and Pablo was presented, which are two non-playmates, which are AI-enriched, and to voice commands, or also Jaspar, an in-game enemies that can share universe. Just game parameters becomes too familiar. This can bring—
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Just like that, we have also the ability to not only use a companion AI to do stuff for us as we play, like opening menus, changing settings, changing the UI in real time as you play. Focus on the game itself. Okay, I see two enemies in front of us. You see them as well. I don't. Find a good spot to cover. Do a slingshot, Mike. Watch out, Pablo. Sofia, please back up. Right flank, right. What will happen now is that my voice are acting as modifiers. It will modify the way they behave without being completely stupid.
We have a behavior tree, but it's modified what I'm asking as a player. That's where AI is taking into account everything, the context and what the options are. Events, and then this will attempt to help the teammate and act accordingly. But it means for the player, it's interesting to see how an RPG game where your teammate with you as a co-op buddy. How the voice is shaping the way you. What's interesting is that you may have seen an achievement. We saw something that's DLM, and that's so cool.
What is very— our guests that will also be able to enable people to and give. Like to use their could become accessible to. It won't be any more machine and the gamer. Now, explain more details provided develop with are now used in fields as diverse. Typing tests. Certain iterations is also support and training. This is also tangible productivity gain. To produce more content remains clear with better tools to design and thereby open the players. This is really a sea change in the market, which is going to help a lot for our sector's growth. That way, we can compete in areas where gamers are spending a lot of their time, like TikTok, for instance. Now, I wanted to talk about gamescom, which is the German trade show, which is the big show in the world, where we're. Announcements, they illustrate dynamic audio and [inaudible].
We announced a full of Heroes of Might and Magic III, which is a fairly old. It was in 1999, and the release date is expected at the beginning of 2027. That will have, which was really a fully aligned with the strategy that we want to have for the company. So 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 Rainbow Six brand to be present on different types of games, which are, of course, connected. We presented Rayman Legends Retold.
We offered a playable demo of the game in the opening level and sequence so we could changes in the game, because back then it was a 2D game, but switched to very community. Now, regarding Rainbow Six Siege, we revealed a new as well as a map. We also announced Siege 2 per year because it had been around one or two new operators a year. But it was important to ramp things up again with more regular releases of operators on, and because it generates a lot more air and revenue.
Presented with a DLC, we also confirmed the arrival on cross-play in as early as— finally, we launched what we called Player Council, new community platform that is PC oriented, so players can test games in development and discuss directly with our team and possibly include— we can get much quicker market feedback and weak relationship with players when they've— the game because there are all these announcements and so energetic, energists are and how able we are to the experience that we offer our historic licenses or a focus on PC which will focus in the, so a game that will sell a lot on PC. Now I will give the floor to Frédérick. Back to the results for the financial.
Good afternoon, ladies and gentlemen. Indeed, now I am going to present the results for fiscal 2026 as progress made on our program, the outlook for the current fiscal year, 2026-2027, and the levers that we are actuating to support our return to profitable growth on a lasting basis. Key figures fiscal year. This is a fiscal year marked by the group, reflected in a net booking EUR 1.52 billion and a non-IFRS operating income of EUR -1.04 billion. This 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 EUR -443 million for the fiscal year, reflecting the necessary investment for a very expected for FY 2028.
We said we could implement fixed cost reduction program with EUR 200 million in year of the plan. We earn EUR 25 million in savings engagement. Our activity indicators are 129 million active unique players and 36 million active on average. Assassin's Creed and Rainbow Six, unique players of the strength and resilience of— at the non-IFRS account 2026 net bookings stood at EUR 1.52 billion, EUR 1.846 billion. The previous 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, increase compared to EUR 1.29 billion the previous year. This change is mostly related to accelerated depre games portfolio review. Our non-IFRS SG&A EUR 400 million, EUR 548 million the previous year and EUR 81 million reducing the continuation of our cost reduction program. Non-IFRS opens to EUR 1.45 million.
The statutory accounts operating income 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 our Canadian subsidiary for the fiscal year 2025, compared to EUR 404 million the previous year. Exceptional income is by EUR 1.806 billion of the 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 75 million versus EUR 93 million. The cash flow, the consumption of free at EUR 443 million versus EUR 128 million the previous year.
This is reflected 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 2028 and 2029. 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 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 combine and at the end of March 2026, EUR 5 billion, which gives us good. Our gross debt is made up of three instruments. Our convertible amortizable loans. These search are occurring in 2027, about eight in 2028 of about four one.
I would like to say that the 20 shareholders have an early sell option in November 2026, and we have best event care for. Moreover, we implemented a suitable midterm focus on our cost reduction, major progress during the fiscal year. We are ahead of the schedule, and the goal for the group was about as close to the historic year for our senior profiles, about EUR 1.435 billion in the fiscal year 2026. This is a total reduction of about 18% fixed cost base, which is the fiscal year 2023. 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. This selectivity and overall efficiency return to profitable lasting to our goals for the fiscal year 2026.
We are anticipating net bookings down by a single-digit percentage, as well rating margin is high single digits. Our free cash flow consumption should hit EUR 500 million over the fiscal year. Beyond this transition year, we aim to positive free cash non-IFRS outcome, and then robust generation for, and a cumulative positive free cash flow for the entire period 2027, with a significant major brands for the fiscal year 2028, 2029, including Assassin's Creed and Ghost Recon and Rainbow Six Siege for the conclusions. 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 roads into the Chinese markets and the more generally transformation by creating five creative houses, by recruiting high-level talent.
We have strongly restarted because the goal is to reduce costs by EUR 500 million between financial year 2023 to 2029 to go from EUR 1.750 billion to [EUR 1.30 billion]. We can see the firms that lead us to think that a more direct contact with the team, with tighter teams and management team helps us move very much. To consider is really the AI disruption, generative AI, which is something that is deeply changing our markets, and we can have games that are smarter that way, that can respond a lot more to the player's actions. That will also allow more people to play because with the use voice to steer the game, we can allow to play. Here also shift Ubisoft to leverage technological change and now AI team, we are tackling that issue to be able to leverage it. That was—
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. 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, commitment, 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 Entertainment's history. Now I would like to give the floor to Frédérick to introduce the resolutions.
Thank you, Yves. Our ordinary resolutions are about the approval of statutory accounts, consolidated accounts, and the special report of auditors on regulated third-party agreements. In this respect, I would like to point out that the three new agreements concluded in the fiscal year 2026 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. These resolutions are also on the ex-post and ex-ante votes on these corporate officers' remuneration.
Regarding ex-post resolutions, information is on 422 document regarding detailed goals and the level of performance conditions as well as the annual Corporate officers did not have any variation for FY 2026. For ex-ante, information is on parity with the reality that applies to Director, the Chairman and CEO, and Deputy CEOs, and are going to apply to fiscal 2027. Still amongst 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 based on market opportunity.
Highlight resolution issuance without pre-scriptional flexibility act in terms given to the Board of Directors by the general meeting in 2025. The issue price cannot diverge of the share price for 2020. It is up to the maximal discount. Raise the threshold to 20% of capital. Time for shareholders. Is there to allow the board of direct an issuance to one or several peoples designated. This new French regulation allows the board, basic beneficiaries of an issuances in line with the decree from the closing. Other financial resolutions are in with previous resolutions that you voted on to also to approve resolutions of employee Europe, so that employees of competitive packages access to remunerations of total increases.
So, we will three resolutions so that employees capital increases with a maximum of 2% of the solution offering the possibility for option for employees limited to five officers and members of the board cannot benefit from these. With this resolution to implement a goal to build loyalty and in a context of strong define the interest of benefit and strengthen according the employee share policy in the group. The plans will have a vesting period of annual unlockings, as well as a present condition. Similar to the performance share, the final award will conditions. You are asked articles of association to rules relating to directors as the applicable laws and the title of these resolutions, some complex legalese that are used, and we are here to answer questions. Now we will ask the statutory auditors of their reports.
All right. Well, it's always tricky to be the first one. Chairladies and gentlemen, on behalf of the board, which include our audit opinion on Ubisoft Entertainment and our opinion, solidarity accounts of Ubisoft Group, and my colleague will present the related party agreements. The reports have been made available to you by the company and are included in the universal, which you've received. We'll give you a summary reading regarding Resolutions 1 - 4 for your approval. Regarding our report on page 310 of the universal registration document, we only certify the accounts that have been presented to you and that are submitted for your approval at this AGM.
Our report includes two 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 Assessments, the key points which, in our professional judgment, were the most important for the audit of the accounts at the level of the annual accounts. First, depreciation tests or impairment of internally developed. I analyzed the implementation methods for impairment tests, both in terms of internal control procedures and verification of the consistency of sales forecast for the five-year business plan, and we verified that the annex provides appropriate information. You will find it in footnote 19.
This also includes evaluation of equity securities and related risk provisions. We analyzed the implementation methods of impairment tests to ensure that usage values are not overestimated, and we've verified that the annex provides appropriate information. We'll find this in note 1723. We also confirmed that our report provides all the other information required by law, particularly with regard to the independence of auditors, specific checks, information provided in the management report, the corporate governance report, and other legal notices. Regarding our report on the consolidated financial statements, which appears 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 analyzed the implementation methods for impairment tests, both in terms of internal control procedures and verification of the consistency of sales forecast for the five-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 verified that the annex provides appropriate information in footnote 30. We have an evaluation of revenue from video games sales, including a service component and from licensing agreements. We analyzed the various contracts and carried out audits on the accounting, and we verified that the annex provides appropriate information in notes 4 and 6.
The details of the work and analyses relating to these key audits are described in our report on the consolidated financial statement, which also confirm that our reports provides all the other information required by law with regard to specific checks, including the absence of any comments from the Board of Directors management report, information on legal and regulatory obligations, responsibilities of management and commissioners accounts, and the audit committee's reports. We also attest to the company's compliance with the European unique electronic identification format. That's all. Thank you for your attention, and now my colleague will present a report on the related party agreements.
Thank you, Guillaume. Ladies and gentlemen, dear shareholders, regarding the fourth resolution of this AGM, we've issued a report on related party agreements, which you'll find on page 316 of the universal registration document.
In this report, it is for us to provide, based on the information that we have received, the characteristics, essential terms, and reasons justifying the company's interest in the related party agreements 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. This report informs you of the new related party agreements, to be submitted for your approval for the past financial year. There were three. As we said, number one was the conclusion of a shareholders' agreement relating to the company Ubisoft Nova, that we'll call now Vantage Studios. It was concluded on 21 November 2025 between the companies 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 2025 for a tune 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 Studios securities, including a five-year lock-up of the securities. You will 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 unless one of the parties notifies its intention to rescind the agreement. The shareholders' agreement had no financial consequences for Ubisoft in the year ending 31 March 2026. The second 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 have a purchase option on the audiovisual business of Ubisoft. Again, the details are in the report. That engagement led to no financial consequences for Ubisoft for the year ending 31 March 2026. 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 26 November 2025, repay in November 2026.
The rate is 4.906%, and there is a special provision to set the interest rate that can be retroactively applied at the date of the disbursement at the latest at 31 March 2026, after a benchmark was performed in line with the arm's length principle and formalized by a new amendment to the commencement that was signed by both parties. Anyway, that loan led to an interest charge of EUR 3.14 million for the year ending 31 March 2026. Finally, there is an existing relating party agreement which we mentioned last year, and that is the framework agreement between Ubisoft Entertainment, Guillemot Brothers, Guillemot Corporation, Tencent, and a number of directors that was signed on 6 September 2022. That concludes our report on related party agreements. We also issued a number of technical reports on Resolutions 15 - 25 relating delegations granted to the Board of Directors.
These reports were made available to you by Ubisoft. For the second year running, we have issued a sustainability information certification report, and that has three 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, including the management report. Again, we did not find any significant errors or inconsistencies, and refer the reader to Section 5.5 of the report, which details possible omissions. Then, a third part on the information published under the taxonomy, and there we did not find any mistakes, omissions of inconsistency. Thank you for your attention.
Right then. Well, thank you, gentlemen. Now we will move on to 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. I will ask Frédérick to read out these questions.
Yes, if I may, one clarification here. The call option of Vantage Studio is only on the brands of Vantage Studio, not for the entire portfolio. We received 11 questions from Mr. [Jander]. The question: Is the government optimal when independent directors whose candidature has been validated by the board are appointed for the first term for a shorter period, only two years, unlike other directors, in particular, the two latest directors, Axelle Lemaire and André Loesekrug- Pietri? Is it 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 is 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 slate renewal of the board in line with the AFEP-MEDEF practices, this made it possible to smooth out renewals as follows: three in 2027, four in 2028, and three in 2029. In any case, that does not change at all the weight of the voice or 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 found in the URD sections 41244, as part of the work of the Lead Director. Three meetings of independent directors took place in FY 2026, and the duration varies from one to two hours. These meetings, they are ad hoc committees.
They are 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 two new directors attended 64% of the meetings and 82% of the others. URD page 94. Were they not asked to attend certain board? If that was the case, that should be pointed out. 64% out of 14 meetings is attending nine sessions out of 14, and 82% of 42 meetings is more complicated. You end up with 85.71%. Anyways, 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.
André 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, eight out of 11 for Monsieur Loesekrug- Pietri. So that is 73% and not 64%. And nine out of 11 for Mrs. Lemaire, so that is an attendance rate of 82%. So we should remind by the context, the year 2025, 2026 was not typical. There were 11 board meetings between July 2025 and March 2026, compared with seven 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.
Indeed, the external assessment of the board found that all members attended strategic meetings to do with the transformation of the group. There was a question number four, and there are two parts to that, two separate issues. The first part of the question is, "Can you describe the methods in which new games are provisioned while they are 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 the 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 is a depreciation if the use value is lower than the book value, and you find this in Section 6123 regarding other intangible assets.
For games being developed, you find this in note 2022 of the consolidated accounts, that was EUR 216 million, 22% of the full gross amount. For the second part of the question, in our release of October 1st, 2025, run by Charles Guillemot and Christophe Derennes, we want to grow the iconic brands, the new, quote unquote, "The new unit Vantage of the future milk cow of the group, it has to succeed. Can the Board of Directors and the Chair of the appointment committee explain the reason why Charles Guillemot was appointed? What was his performance to justify such an appointment? Could that not create suspicion on the part of financial analysts or the market?" Charles 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 spent a year and a half in the group, and his performance has led to tangible results. He co-drove the transformation committee that led to the new operating model that we have just outlined. 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. Over the same period, Vantage Studios also had a significant improvement in the position of Rainbow Six, as we mentioned earlier on.
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 number five: Vantage Studios is the same thing as Ubisoft Nova SAS, page 16 of the URD, set up on 26 November 2025. 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 five years, due on 26 November 2030, page 299. Were there any collaterals for this loan, and what is in it for Tencent? 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 is 5.656%, and that is 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 the market conditions, involved the injection by Tencent of EUR 1.16 billion, shoring up the liquidities, the cash position of the parent company, so as to alleviate the debt of the group. I remind you that Tencent is a shareholder. Question number six: Would this new structure bring about a change in the 2022 agreements? For lens up, there was a lock-up period of a five-year until 2027, and an eight-year standstill till September 2030. The answer is no. These are two separate operations.
The second agreement has no effect on the first one. Question number seven, why this call option on the audiovisual option? Why this option be exercised at net cost price or EUR 1 without independent valuation by the markets? This mechanism results from a balanced agreement between Ubisoft and Vantage Studios, which we have to look at a 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 Studios pays back that amount to Ubisoft, and so Ubisoft will recover the amounts 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 profits as shareholders without sharing with Vantage Studios. In this case, the nominal price of EUR 1 at the time of the transfer does not deprive Ubisoft of a value that should not have been seen by the group or 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 Ubisoft will keep the profits generated. Question number 11. Gérard Guillemot earned EUR 601,258 pre-tax 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? This amount is Gérard Guillemot's compensation as CEO of the Film & Television business, which he has been running since 2017. This compensation is in keeping with market practices in United States where he works. The Film & Television business continued the development of its content program, in particular with the delivery of the Splinter Cell: Deathwatch series on Netflix, as well as a 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 the ratings and audience. 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. Second, the mechanism that we've described precisely proposes to protect Ubisoft shareholders. Question nine, the float accounts for 74% of the capital and 68% of 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 the lawsuits? Was the contribution of Tencent a divine surprise that saved the present management from its predicament? The answer is the Board of Director 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 five creative houses, each with its own general manager, working from end to end, the creation, development, distribution, and income statement. It's completely decentralized, and that applies both to creative and financial decisions, so completely at odds with the previous centralized model.
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 roadmap with termination of certain projects and the postponement of six projects with a view to launching a major program of launches in 2028 and 2029. 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 de-leveraging it and enabling it to support its future roadmap.
Question 10. Question 10, Resolution 14, page 56 of the brochure. Max buyback price for the shares of EUR 70 when the current price is EUR 5.4 at 24 September 2026. This 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 2210-62 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 authorizations, page 59 of the brochure. The synthesis table for Resolutions 16 - 24 is very clear, but only two resolutions maintain the preferential rights. These resolutions with a very low share price and high ceilings are not conducive to protect current shareholders with the 70% of the float. What precise scenarios justify these ceilings? An 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 three days of trading, therefore, shareholders are protected. Any capital increase without preferential subscription rights, without a mandatory priority period beyond the 10% would be subject to the general meeting.
Naturally, in case of conflict of interest, especially if there are regulated third-party agreements that include common shared CEOs and shareholders for more than 10%, the legal procedure that is applicable would apply with a decision by the Board of Directors without the people concerned being allowed to vote Articles L225-38 and following of the 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 one minute if you can, and I'll ask the various people to introduce themselves when they ask a question. Over to you.
I'm [Claude Haroche]. In this year, 2026, we are celebrating two 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. I quote, "Entertain and enrich the life of millions of gamers. Video games are a major cultural medium that carries emotion and social connections with it." End of quote.
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 Montreuil studio, in order to be able to witness the design and the building of a video game? By stepping into this studio, into the reactor core, your shareholders would know you better and therefore would keep their stake in their portfolio or may even increase it. It is true that you're not 40 years older every year. Thank you, sir.
Thank you for this question. We are preparing events to celebrate the company's anniversary and will 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.
Good afternoon. I'm Mr. [Greiner]. 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 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 2027, 2028. What debt refinancing solution would you have in mind in the very short term?
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. 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 markets in due course, but we're making good progress. We'll inform the market when a transaction is made in accordance with best practices.
Keep in mind that we ended the year at the end of March with EUR 1.35 billion in cash, in liquidity.
Good afternoon, [Pascal Echirade]. I'm an individual shareholder. You announced that the launch of Assassin's Creed Black Flag exceeded annual expectations in just two 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?
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. 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.
Good afternoon. [Valentin Papé]. I'm an individual shareholder, and I'm a wealth advisor. 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?
Thank you once again for this question. I'd like to repeat that we are confident about the implementation of an adequate refinancing plan to ensure the operational rebound that we mentioned a minute ago. For the moment, it's too early to give you any details about the outline of this plan. Mr. Guillemot?
The idea is that we announced a capital increase that Tencent subscribed in Vantage Studios. 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.
Good afternoon, [inaudible] . I'm an individual shareholder. I had two questions for you. The first one is about the development of new licenses within Ubisoft Entertainment. 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? My other question is rather about the Paris stock market and the fact that this year, the short selling rate rose to 15% at mid-year. Are you worried about that? What is your method to support your share price?
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, while 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
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 2028-2029, 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.
Good afternoon. I'm [Stuxa]. I'm an individual shareholder. I've got several questions about the situation of the company. I have questions about two themes, mostly finances and then the operational side. Regarding finances, does Guillemot Brothers charge Vantage for consulting fees, and if so, by how much? A question about short selling. To echo what the previous shareholder said, there are prepaid long-term contracts between Guillemot Brothers with Crédit Agricole, Goldman Sachs, and JP Morgan. 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? 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. To that, you should add an offensive short sell by Jefferies and the hedge funds. Coming back to what the previous shareholder said, what can you do to reduce this sell pressure? 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? Is this a sufficient amount to help? Is there enough money left to let Vantage grow? That was for the financial side.
For the last question, if I noted things right, you referred to the loan that we commented on in the previous session. Yes, absolutely. The EUR 177 million are a fraction of the EUR 1.16 billion that were injected. The goal is to initiate the company's deleveraging. That is what we did last year. That is an agreement that reflects market terms, as I said, and it is fully in line with. It was agreed to by Vantage's shareholders and the management. What is 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 JP Morgan 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. 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's capital, but limited to the 30% threshold. For your first question, does Guillemot Brothers bill any consultancy fees? 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? Why is not Watch Dogs included in the creative houses? I think that you did not talk about that license. Do you want to use the Ubisoft Anvil engine, which is a very good engine? Would you like to open it up to outside studios? Regarding the governance of Vantage Studios, is Tencent involved? Have they got seats on the board of Vantage Studios? Another two questions. One on physical media. There is a controversy with PlayStation. Are you still going to sell physical games and games without DRM or mandatory connection to play the games? How many games are you currently developing after the restructuring?
That is quite a few questions. On physical games, we have games that, depending on their profiles, are more or less well-suited for physical distribution. We are still producing games for physical distribution when the game's profile and its audience and the relevant platform require it. That is what we can say.
For Watch Dogs, I can answer. In fact, it's a brand that hasn't been used much which uses another engine than Anvil and Snowdrop. It's not expected to put it in a creative house for the moment before it's potentially remade. It didn't receive any priority compared to the other existing brands in the company. 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 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. At any rate, it's a game that was high quality and that performed well. Regarding Anvil, which is one of our two 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.
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. That takes up a lot of the organization's focus. 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.
Yes. Good afternoon, Mr. [Gendron]. 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 three times EUR 1 billion, EUR 1 billion per game in the long run. Could you share expected dates for that goal?
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 two biggest brands for Vantage Studios. They have two 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 four 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. We'll also see how Rainbow Six Tactics can contribute more to the brand's growth. As Yves also said, Rainbow Six Siege is going to grow on PC in China, that's another major lever for the brand and the game. Assassin's Creed's got a very big development program over the next few years. We've already announced Hexe and Invictus, which are two 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 is working well with a very big game on fiscal 2028, 2029. It will come a bit later to reach that goal in the long run.
Yes, good afternoon. 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?
We said and as Yves presented, that is EUR 130 billion as a whole segment out of the EUR 200 billion for the total market. That is the biggest segment in video gaming right now for all platforms, and it is all the more important as this is a recurrent market. Of course, you have 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 a machine, really, that lets you have recurring business.
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 have brands like For Honor. 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.
That is a major angle for future growth with a lot of reoccurrence and strong profitability. These are avenues that we are pursuing as quickly as possible. Yes, please.
I wanted to discuss, you talked about that subject and partly what are the growth prospects in China, because it is a limited market compared to the overall population size. If you could enlighten us on that. Another thing is whether it would be possible to use another platform than Steam, which captures quite a bit of game's profits. That is it.
We have quite a few games and that is why I was talking about Rainbow Six Tactics or Heroes 3, which is already approved in China. It will be launched at the same time in China and in the rest of the world. The more you go towards PC, the more you can reach that very big market. There are 600 million - 700 million gamers between PC and mobile there. It is one of the biggest recurring markets right now on the planet. As we said earlier, we have 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.
We also said that we would have Chinese teams taking part in esports competitions because that is also a very strong marketing element for these games. We have other upcoming games that will be adapted to the PC market. Re China, there is a lot of potential. We are not selling directly, so we do not get the same revenues as we get in the rest of the world.
These are revenues that come more from royalties, so also fewer launch costs on the markets. 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. 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 are above a certain revenue level on the game, you pay less as a percentage to Steam.
There are other possibilities, but now it is a very good platform for PC, which has now a lot of users who log on regularly. That is our platform of focus. We had, and we still have an internal Ubisoft platform on which we can sell, but it is 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 parts is reached. We are now going to start the vote. Before that, let us watch a short clip so that the legal officer and the scrutineers can go to the control room. Let us watch this short video.
[Presentation]
That gives you a flavor of the exciting atmosphere in these competitions. This was the Six 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. Yes, 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 choose amongst the winners of these competitions.
You have an action sports type of game, and then you have these games, which also play a significant part in these things. Anyway, we will 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 will vote, and then we will read out the results.
On the screen, it tells you just how to use these devices. Pretty straightforward, and you have to make sure that there is 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 number one is the approval of the separate financial statements for the financial year ended 31 March 2026. Please vote now. [Non-English content] Voting is completed and the resolution was adopted. Number two, allocation of earnings for the financial year ended 31 March 2026. Please vote now. [Non-English content] Right, time is up. And again, 99% in favor.
Resolution number three, approval of the consolidated financial statements for the financial year ended 31 March 2026. Please vote now. [Non-English content] Time is up. And again, the resolution was carried. Number four, approval of the auditor's report on related party agreements. [Non-English content] Time is up. And it is approved. Number five, approval of the components of the compensation for corporate officers. Please vote now. [Non-English content] Time is up. And we have adoption. Number six is the approval of the compensation for 2026 of Mr. Yves Guillemot, CEO. [Non-English content] Time is up. And thumbs up. Resolution number seven, approval of the compensation paid to Mr. Claude Guillemot, Deputy CEO. Please vote now. [Non-English content] Time is up. Resolution adopted. [Non-English content] Number eight, compensation of Michel Guillemot, Deputy CEO. [Non-English content] Time is up. And we have adoption.
Number nine, compensation of Gérard Guillemot, Deputy CEO. [Non-English content] Time is up. And the resolution was adopted. We have now number 10, approval of the compensation of Mr. Christian Guillemot, another Deputy CEO. [Non-English content] And time is up. And we have adoption as well. Resolution number 11, approval of the compensation policy applicable to the Chairman and CEO. Please vote now. [Non-English content] Time is up. Resolution adopted. Number 12, compensation policy applicable to the Deputy CEOs. Please vote now. [Non-English content] Time is up. Adopted. Number 13 is compensation policy applicable to the directors. Please vote now. [Non-English content] [Non-English content] Number 14. Authorization granted to the Board of Directors to trade in the company's shares. Please vote now. [Non-English content] Time is up. And the resolution was carried.
We move on to resolution number 15, authorization granted to the Board of Directors in order to reduce the share capital by cancellation of the company's treasury shares. [Non-English content] Time's up. We have adoption. Number 16, delegation of authority to the Board of Directors to increase the share capital through the capitalization of reserves, profits, premiums, or other amounts to within 10% of the normal share capital. Please vote now. [Non-English content] Time's up. The resolution was carried. Number 17, delegation authority to the board to increase, keeping the preferential subscription right to within 50% of the share capital. Please vote now. [Non-English content] Time's up. We have approval. Number 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. Time's up.
We have approval as well. Takes us to 19 on the increase of the share capital by issuing shares without preferential rights by public offering. Please vote now. [Non-English content] Time's up. We have approval. Now resolution number 20 to increase share capital without preferential subscription rights restricted to one or more specifically named persons. [Non-English content] Time's up. The resolution was carried. We have number 21, contributions in kind to within 10% of the share capital. Please vote now. [Non-English content] Time's up. We have approval as well. Takes us to number 22, delegation of authority to the Board of Directors to increase the share capital by issuing ordinary shares for the benefit of members of a company or group savings schemes with waiver of preferential subscription rights. Please vote now. [Non-English content] Time's up.
We have adoption as well. We have number 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. [Non-English content] Time's up. We have approval. Now, number 24, delegation of authority to increase share capital for reserved categories of beneficiaries under an employee share ownership scheme with waiver of preferential subscription rights. Please vote now. [Non-English content] Time's up. We have approval.
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. Time's up. We have adoption. Number 26 is on the alignment of the articles of association with applicable legal provisions and/or regulations. Please vote now. Now the time is up. The resolution was carried. Then the final resolution, number 27, simply powers for formalities. Please vote now. [Non-English content] Time is up. 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 have made this company what it is today. 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 you will find refreshments outside the auditorium. You're invited. Thank you.