CD Projekt Group FY2024 Earnings Release

CD PROJEKT GROUP

FY 2024 Earnings

Michał Nowakowski
|

J O I N T 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

Karolina Gnaś
|

V I C E P R E S I D E N T , I N V E S T O R R E L A T I O N S

2 5 M A R C H 2 0 2 5

2

The Witcher 4 took over The Game Awards 2024…

*the data covers the 72-hour period following the The Games Awards 2024, aggregated by CD PROJEKT RED

Most watched trailers from The Game Awards 2024 on the IGN channel*

(thousands of views)

8 167

2 765

962

574

509

439

413

148

3

The Witcher 4

…and dominated the press coverage – being the most

talked-about game after The Game Awards 2024

Titles with the most press coverage after The Game Awards 2024*

*the data covers the 72-hour period following the The Games Awards 2024, aggregated by Fancensus

4

95%

OVERWHELMINGLY

POSITIVE REVIEWS*

*from the last 30 days before March 25th

GAMES AWARDS

5

*as of the end of November 2024

6

*as of the end of November 2024

7

7

8

New
Cyberpunk animation project
on Netflix & more coming soon

Orion

Project stage:
Concept

NEW IP

Unannounced projects
– including one developed by The Fool’s Theory

9

Long-term outlook update

The Witcher 4

Project stage:
Production

Sirius

Project stage:
Pre-production

The Witcher Remake

Project stage:
Concept

Hadar

Project stage:
IP concept phase

650

Development teams engaged in ongoing projects

*e.g. Localization, Quality Assurance, Data, Insights & Experiences, Artificial Intelligence

**including unannounced projects developed internally or by third parties (the number of third-party developers involved is not included in this count)

The Witcher 4

Orion

Sirius

Hadar

Shared Services*

Other projects**

No. of

developers

411

84

49

17

124

22

February 28, 2025

707

400

64

42

18

107

19

October 31, 2024

10

11

x

O F T H E C D P R O J E K T G R O U P

Financial Results

12

CD PROJEKT GROUP — Profit and loss account

All figures in PLN thousands

CD PROJEKT GROUP

RED

GOG

eliminations

2024 vs.

2024 vs.

2023

2024

2024

2024

2024

2023
[PLN]

2023
[%]

Sales revenue

1 230 199

985 030

801 635

199 338

-15 943

-245 169

-20%

Sales of products and services

1 043 446

801 635

793 960

1 112

6 563

-241 811

-23%

– CP 2077 + expansion *

852 099

588 807

583 124

-263 293

-31%

– The Witcher 1, 2, 3 + expansions *

158 736

163 457

162 662

4 721

3%

Sales of goods for resale and materials

186 753

183 395

7 675

198 226

-22 506

-3 358

-2%

Cost of sales

377 958

247 152

118 296

144 716

-15 860

-130 806

-35%

Cost of products and services sold

237 151

110 935

110 998

-63

-126 216

-53%

Cost of goods for resale and materials sold

140 807

136 217

7 298

144 716

-15 797

-4 590

-3%

Gross profit on sales

852 241

737 878

683 339

54 622

-83

-114 363

-13%

Operating costs

383 201

372 382

317 921

54 545

-84

-10 819

-3%

Selling expenses

243 796

135 368

92 144

43 304

-80

-108 428

-44%

– CP IP publishing costs

115 762

28 609

28 609

-87 153

-75%

– Cost of product maintenance

57 961

16 886

16 886

-41 075

-71%

Administrative expenses

169 116

248 310

237 509

10 926

-125

79 194

47%

– Research works costs

20 002

78 504

78 504

58 502

292%

Other operating income less expenses

29 711

11 296

11 732

-315

-121

-18 415

-62%

EBIT

469 040

365 496

365 418

77

1

-103 544

-22%

Financial income less costs

69 452

64 588

62 847

1 634

107

-4 864

-7%

Income tax

57 387

-39 790

-40 347

577

-20

-97 177

-169%

Net profit

481 105

469 874

468 612

1 134

128

-11 231

-2%

Net profitability

39.1%

47.7%

58.5%

0.6%

*estimation

13

All figures in PLN thousands

TŁO JAK NA SLAJDZIE OKŁADKOWO-FINANSOWYM

CD PROJEKT GROUP

Net profit vs. costs and expenses

14

TŁO JAK NA SLAJDZIE OKŁADKOWO-FINANSOWYM

CD PROJEKT GROUP

Long-term perspective

All figures in PLN thousands

15

2.5x

2.3x

CD PROJEKT GROUP – assets

Assets

31.12.2023

31.12.2024

change

change %

Non-current assets

1 450 685

1 574 164

123 479

9%

Expenditure on development projects

527 182

695 421

168 239

32%

– New development during 2024

274 373

– Amortization during 2024

-106 134

Other financial assets *

455 907

292 137

-163 770

-36%

Property, plant and equipment, investment properties

217 283

294 583

77 300

36%

Deferred tax assets

43 433

101 989

58 556

135%

Other non-current assets

206 880

190 034

-16 846

-8%

Current assets

1 162 815

1 468 260

305 445

26%

Trade receivables

193 520

167 628

-25 892

-13%

Other financial assets *

362 719

540 620

177 901

49%

Cash and bank deposits *

516 259

647 410

131 151

25%

Other current assets

90 317

112 602

22 285

25%

Total assets

2 613 500

3 042 424

428 924

16%

*Cash, bank deposits and bonds – total

1 309 459

1 472 034

162 575

12%

All figures in PLN thousands

16

Equity and liabilities

31.12.2023

31.12.2024

change

change %

Equity

2 403 223

2 800 667

397 444

17%

Liabilities

210 277

241 757

31 480

15%

Liabilities

103 914

120 827

16 913

16%

Deferred income

15 485

16 840

1 355

9%

Provisions

90 878

104 090

13 212

15%

Total liabilities and equity

2 613 500

3 042 424

428 924

16%

17

All figures in PLN thousands

CD PROJEKT GROUP – equity and liabilities

Cash, deposits

and bonds

01.01.2024

Net profit

for the period

Research

works costs*

Amortization

& depreciation

Acquisition of

intangible and

tangible assets

Other

(cumulated)

Cash flow

excluding

R&D and

dividend

Research

works costs*

Expenditure

on development

projects

Cash, deposits

and bonds

31.12.2024

CD PROJEKT GROUP

Changes in cash, deposits & bonds

18

All figures in PLN thousands

1 309 459

119 767

78 504

469 874

-98 169

20 325

590 301

-249 311

-99 911

1 472 034

Cash flow excluding R&D costs/expenses and dividend during 2024:
+590 301k PLN

Total increase including R&D costs/expenses and dividend during 2024:
+162 575k PLN

*P&L recognised costs

-78 504

Dividend paid

out

Cost of product maintenance – released products (P&L – Selling costs)

Research works costs – new projects (P&L – G&A costs)

Development expenditures – new products (Assets – capitalised)

CD PROJEKT RED

Research, development & product maintenance costs

19

All figures in PLN thousands

0

25 000

50 000

75 000

100 000

Q1 2023

Q2 2023

Q3 2023

Q4 2023

Q1 2024

Q2 2024

Q3 2024

Q4 2024

20

All figures in PLN thousands

CD PROJEKT GROUP – incentive program B

Consolidated net profit goals of the motivational program to align top managers goals with the CD PROJEKT Group Objectives

52%

remaining

84%

remaining

2023-2026

2024-2027

2025-2028

1 000 000

0

2 000 000

3 000 000

4 000 000

2023 FY Net profit

2024 FY Net profit

Remaining results

21

Thank you

ir@cdprojekt.com

karolina.gnas@cdprojekt.com

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 y CD

PROJEKT.

The recipients of this presentation bear all responsibility for their own analyses and assessments regarding the status of the market 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 PROJEKT 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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