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CD Projekt Group FY2024 H1 Earnings Release

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Aug, 2024 CD PROJEKT GROUP

H1 2024 Earnings

2 8 A U G U S T 2 0 2 4

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

2

H1 2024: Back catalogue sales triggers

…supported by franchise flywheel activities

3

Development teams engaged in ongoing projects

*General Development Services (e.g. Localization, Quality Assurance), Data, Insights & Experiences, Artificial Intelligence

Polaris

Orion

Sirius

Hadar

Shared Services*

Other projects

No. of

developers

17

February 29, 2024

410

60

42

20

99

8

July 31, 2024

639

407

56

39

20

96

12

April 30, 2024

630

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

Financial Results

4

CD PROJEKT GROUP — Profit and loss account

All figures in PLN thousands

CD PROJEKT GROUP

RED

GOG

eliminations

H1 2024 vs.

H1 2024 vs.

H1 2023

H1 2024

H1 2024

H1 2024

H1 2024

H1 2023
[PLN]

H1 2023
[%]

Sales revenue

325 214

424 812

344 946

87 669

-7 803

99 598

31%

Sales of products and services

238 883

344 530

341 154

306

3 070

105 647

44%

– CP 2077 + expansion *

142 559

257 667

254 859

115 108

81%

– The Witcher 1, 2, 3 + expansions *

77 837

61 284

60 964

-16 553

-21%

Sales of goods for resale and materials

86 331

80 282

3 792

87 363

-10 873

-6 049

-7%

Cost of sales

107 213

124 847

69 028

63 535

-7 716

17 634

16%

Cost of products and services sold

42 701

65 684

65 689

-5

22 983

54%

Cost of goods for resale and materials sold

64 512

59 163

3 339

63 535

-7 711

-5 349

-8%

Gross profit on sales

218 001

299 965

275 918

24 134

-87

81 964

38%

Operating costs

120 111

159 742

136 754

23 162

-174

39 631

33%

Selling expenses

85 106

60 875

41 077

19 858

-60

-24 231

-28%

– Cost of product maintenance

21 516

10 887

10 887

-10 629

-49%

– CP IP publishing costs

29 555

14 729

14 729

-14 826

-50%

Administrative expenses

60 063

106 034

101 214

4 865

-45

45 971

77%

– Research works costs

3 273

45 918

45 918

42 645

1 303%

Other operating income less expenses

25 058

7 167

5 537

1 561

69

-17 891

-71%

– Project Sirius – impairment/adjustment (balance)

18 786

-18 786

-100%

EBIT

97 890

140 223

139 164

972

87

42 333

43%

Financial income less costs

21 640

34 634

34 264

310

60

12 994

60%

Income tax

29 311

4 851

4 597

251

3

-24 460

-83%

– Current income tax

23 256

17 899

17 320

579

-5 357

-23%

– Change of deferred tax calculation

6 055

-13 048

-12 723

-328

3

-19 103

-315%

Net profit

90 219

170 006

168 831

1 031

144

79 787

88%

Net profitability

27.7%

40.0%

48.9%

1.2%

5

*estimation

CD PROJEKT GROUP – assets

Assets

31.12.2023

30.06.2024

change

change %

Non-current assets

1 450 685

1 525 159

74 474

5%

Expenditure on development projects

527 182

586 630

59 448

11%

– New development during H1 2024

112 365

– Depreciation during H1 2024

-52 917

Other financial assets *

455 907

426 048

-29 859

-7%

Property, plant and equipment, investment properties

217 283

251 769

34 486

16%

Deferred tax assets

43 433

56 481

13 048

30%

Other non-current assets

206 880

204 231

-2 649

-1%

Current assets

1 162 815

1 134 848

-27 967

-2%

Trade receivables

193 520

83 928

-109 592

-57%

Other financial assets *

362 719

457 094

94 375

26%

Cash and bank deposits *

516 259

489 825

-26 434

-5%

Other current assets

90 317

104 001

13 684

15%

Total assets

2 613 500

2 660 007

46 507

2%

*Cash, bank deposits and bonds – total

1 309 459

1 365 322

55 863

4%

6

All figures in PLN thousands

Equity and liabilities

31.12.2023

30.06.2024

change

change %

Equity

2 403 223

2 484 354

81 131

3%

Liabilities

210 277

175 653

-34 624

-16%

Liabilities

103 914

95 186

-8 728

-8%

Deferred income

15 485

15 812

327

2%

Provisions

90 878

64 655

-26 223

-29%

Total liabilities and equity

2 613 500

2 660 007

46 507

2%

7

All figures in PLN thousands

CD PROJEKT GROUP – equity and liabilities

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

8

All figures in PLN thousands

0

25 000

50 000

75 000

100 000

2023 Q1

2023 Q2

2023 Q3

2023 Q4

2024 Q1

2024 Q2

Cash, deposits

and bonds

2024.01.01

Net profit

for the period

Research

works costs*

Depreciation

and amortization

Change in

receivables,

liabilities,

provisions

Acquisition of

intangible and

tangible assets

Other

(cumulated)

Ongoing

business

cash flow

Research

works costs*

Expenditure

on development

projects

Dividend

paid out

Cash, deposits

and bonds

2024.06.30

CD PROJEKT GROUP

Changes in cash, deposits & bonds

9

All figures in PLN thousands

1 309 459

59 817

45 918

170 006

61 061

-36 953

9 027

308 831

-45 918

-107 139

-99 911

1 365 322

Total outcome from ongoing business during H1 2024:
308 831

Total increase after R&D costs/expenses and dividend pay out during H1 2024:
55 863

*P&L recognised costs

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 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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