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CD Projekt Group FY2023 Q3 Earnings Release

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Nov, 2023 CD PROJEKT GROUP
Q3 2023 Earnings
2 8 N O V E M B E R 2 0 2 3
Adam Kiciński | C H I E F E X E C U T I V E O F F I C E R , M E M B E R O F T H E B O A R D
Piotr Nielubowicz | C H I E F F I N A N C I A L O F F I C E R , M E M B E R O F T H E B O A R D
Michał Nowakowski | C H I E F C O M M E R C I A L O F F I C E R , M E M B E R O F T H E B O A R D

2
4.3M
C O P I E S S O L Dsince the launch of the game
20%
A T T A C H M E N T
R A T I O*
2
*Estimate

“ ”
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V E R Y
P O S I T I V E
92% reviews from last 30 days are positive
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“ ”
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V E R Y
P O S I T I V E
92% reviews from last 30 days are positive
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B E S T G A M E
E X P A N S I O N B E S T G A M E T R A I L E R
5

Best
Narrative Best Performance Idris Elba as Solomon Reed
Best Ongoing Best Community
Support
N O M I N A T I O N S
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Players’ Voice

7
5
th
D E C E M B E R

*At the end of July 2023, “The Witcher: Monster Slayer (SPOKKO)” & “W3 next-gen version” were included in “Other projects” due to small number of devs in its own categories (<10)
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Development teams engaged in ongoing projects

O F T H E C D P R O J E K T G R O U P
Financial Results
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CD PROJEKT GROUP — Profit and loss account
All figures in PLN thousands
CD PROJEKT GROUPREDGOG Q3 2023 vs.Q3 2023 vs.
Q3 2022 Q3 2023 Q3 2023Q3 2023eliminations Q3 2022 [PLN] Q3 2022 [%]
Sales revenue 245 514 442 682 382 042 83 700-23 060197 168 80%
Sales of products 203 189 390 534 380 64609 888 187 345 92%
Sales of services 308455 191307 -43 14748%
Sales of goods for resale and materials 42 017 51 6931 205 83 393-32 9059 67623%
Cost of sales 79 200 143 167 105 689 60 579-23 10163 967 81%
Cost of products and services sold 48 602 104 410 104 4940-8455 808 115%
– CP77 boxed edition provisions 0 13 041 13 041 13 041
Cost of goods for resale and materials sold 30 598 38 7571 195 60 579-23 0178 15927%
Gross profit on sales 166 314 299 515 276 353 23 121 41133 201 80%
Operating costs 69 010 113 276 98 288 14 9256344 266 64%
Selling expenses 45 064 66 140 53 275 12 883 -1821 076 47%
– CP IP publishing costs 13 515 39 864 39 864 26 349195%
Administrative expenses 26 973 51 300 49 0312 11915024 327 90%
Other operating income less expenses 3 0274 1644 018 77691 13738%
EBIT 97 304 186 239 178 065 8 196-2288 935 91%
Financial income less costs 14 943 47 430 47 1712194032 487 217%
– Reversal of Spokko shares write-off due to merger 0 27 271 27 271
27 271
Income tax 13 358 30 805 29 980825017 447 131%
– Non recoupable withholding tax for current year 0 8 274 8 274 8 274
Net profit 98 889 202 864 195 256 7 590 18103 975 105%
Net profitability 40.3% 45.8%51.1%9.1%
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TŁO JAK NA SLAJDZIE OKŁADKOWO-FINANSOWYM

CD PROJEKT RED
Depreciation scheme of Cyberpunk projects
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Expenditures on development of Cyberpunk 2077 base game that have not yet been depreciated
……(including edition for newest-gen consoles)178m PLN
Expenditures on development of Phantom Liberty 273m PLN
The value of expenditures on development projects to be depreciated 451m PLN
Period% of asset to be quarterly depreciated
Q3-Q4 2023 20.0%
Q1-Q4 2024 5.0%
Q1-Q4 2025 3.5%
Q1-Q4 2026 2.5%
Q1-Q4 2027 2.0%
Q1-Q4 2028 2.0%

All figures in PLN thousands 12
TŁO JAK NA SLAJDZIE OKŁADKOWO-FINANSOWYM
CD PROJEKT GROUP
Revenues, profit vs. costs and expenses

CD PROJEKT GROUP – assets
Assets30.06.2023 30.09.2023changechange %
Non-current assets 1 300 5861 274 924 -25 662 -2%
Expenditure on development projects 600 099
575 418-24 681 -4%
– New development during Q3 2023 70 903

– Depreciation during Q3 2023 -94 026

Other financial assets * 242 203
254 687 12 484 5%
Property, plant and equipment, investment properties 198 438
206 231 7 7934%
Deferred tax assets 47 044
22 897 -24 147 -51%
Other non-current assets 212 802
215 691 2 889 1%
Current assets 883 9211 137 807 253 886 29%
Trade receivables 83 557
287 833 204 276 244%
Other financial assets * 249 576
268 043 18 467 7%
Cash and bank deposits * 466 461
499 482 33 021 7%
Other current assets 84 327
82 449 -1 878 -2%
Total assets 2 184 507
2 412 731 228 224 10%
*Cash, bank deposits and T-bonds – total 930 6571 014 652 83 995 9%
13 All figures in PLN thousands
TŁO JAK NA SLAJDZIE OKŁADKOWO-FINANSOWYM

Equity and liabilities30.06.2023 30.09.2023changechange %
Equity 2 030 808 2 208 144 177 336 9%
Liabilities 153 699204 587 50 888 33%
Liabilities 89 814117 551 27 737 31%
Deferred income 28 36415 176-13 188 -46%
Provisions 35 52171 86036 339 102%
– Bonuses 9 25431 569 22 315 241%
– Costs/Expenses 26 26740 29114 024 53%
Total liabilities and equity 2 184 5072 412 731 228 224 10%
14 All figures in PLN thousands
CD PROJEKT GROUP – equity and liabilities

CD PROJEKT RED
Product research, development & service costs
15 All figures in PLN thousands

CD PROJEKT GROUP
Changes in cash, deposits & T-bonds
930 657
1 014 652
16 All figures in PLN thousands
Total increase of cash, deposits and T-bonds during Q3 2023: 83 995
202 864
97 206 -64 831 60 080 -198 161
-13 163

Q&A
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Thank you
ir@cdprojekt.com
karolina.gnas@cdprojekt.com
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Legal Disclaimer
This presentation was created by CD PROJEKT S.A. (“CD PROJEKT”).
Data contained in this presentation is valid as of the day of its preparation. Consequently, this presentation will not be subject to changes, updates or
modifications to account for events which might occur after this day .
The presentation outlines the activities of CD PROJEKT and the CD PROJEKT Group. It is purely informative in scope and should not be regarded as
offering investment advice. Information contained in this presentation must not be construed as assurances, projections or forecasts regarding future
accomplishments or earnings of CD PROJEKT or of the CD PROJEKT Group.
Although due diligence was applied in preparing this presentation, it may nevertheless contain ambiguities. Under no circumstances should this
presentation be construed as a purchase recommendation, an invitation to subscribe to , or an offer to recommend purchase or subscription to any
securities issued by CD PROJEKT.
The recipients of this presentation bear all responsibility for their own analyses and assessments regarding the status of the mark et as well as the
condition and potential future earnings of CD PROJEKT which may be based on information contained herein. CD PROJEKT wishes to advise all parties
accessing this presentation that the sole authoritative source of information concerning the Company’ s earnings, projections, events and indicators is
represented by the current and periodic reports published by CD PRO JEKT in the course of discharging its reporting obligations under Polish law.
This presentation is not to be circulated in territories and states where public circulation and sharing of information contained herein may be subject to
legal restrictions. Parties accessing this presentation are advised to familiarize themselves with any such restrictions beforehand.
CD PROJEKT S.A. or any of its affiliates in the capital group (“CD PROJEKT”) with regards to any kind of, either sponsored or unsponsored ADR
(“alternative depositary receipts”) or any other financial instruments of this kind (“Financial Instruments”) does not (i) make any warranties, expressed or
implied, as to the accuracy, adequacy or completeness or any of the information connected with the Financial Instruments, (ii) support or encourage the
creation of any kind of the Financial Instruments. CD PROJEKT does not represent any depository institution, bank or anyone nor should any such
entity/person.
CD PROJEKT shall have no responsibility or liability for the Financial Instruments. In case of any question, the holder of any Financial Instruments (as
defined above) shall receive all the essential information at the institution issuing such Financial Instruments or any institution supporting such issuance
of the Financial Instruments.
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