CD Projekt Group FY2024 Q1 Earnings Release

May, 2024 CD PROJEKT GROUP

Q1 2024 Earnings

2 8 M A Y 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

Adam Kiciński
|

C H I E F S T R A T E G Y O F F I C E R , M E M B E R O F T H E B O A R D

2

95%
positive reviews

achieved on May 10th*

OVERWHELMINGLY

POSITIVE

*from the last 30 days before May 10th

2020

3

Share of monthly positive reviews for Cyberpunk 2077

78%

Source: Steam

100%

90%

80%

70%

60%

50%

I

II

III

IV

V

VI

VII

VIII

IX

X

XI

XII

I

II

III*

IV

V

VI

VII

VIII

IX

X

XI

XII

I

II

III

IV

V

VI

VII

VIII

IX

X

XI

XII

I

II

XII

III

IV

2021

2022

2023

2024

V

*review bombing linked to the war in Ukraine

95%

EVOLVING GAME

4

5

6

7

Development teams engaged in ongoing projects

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

Cyberpunk 2077

Polaris

Orion

Sirius

Hadar

Shared Services*

Other projects

17

403

47

37

20

95

8

February 29, 2024

627

407

56

39

20

96

12

April 30, 2024

630

No. of

developers

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

Financial Results

8

CD PROJEKT GROUP — Profit and loss account

All figures in PLN thousands

CD PROJEKT GROUP

RED

GOG

eliminations

Q1 2024 vs.

Q1 2024 vs.

Q1 2023

Q1 2024

Q1 2024

Q1 2024

Q1 2024

Q1 2023
[PLN]

Q1 2023
[%]

Sales revenue

174 757

226 785

187 238

44 234

-4 687

52 028

30%

Sales of products and services

131 023

186 219

184 341

102

1 776

55 196

42%

– CP 2077 + expansion *

75 396

146 235

144 524

70 839

94%

– The Witcher 1, 2, 3 + expansions *

48 065

28 226

28 061

-19 840

-41%

Sales of goods for resale and materials

43 734

40 566

2 897

44 132

-6 463

-3 168

-7%

Cost of sales

54 252

62 053

34 644

32 188

-4 779

7 801

14%

Cost of products and services sold

21 858

31 631

31 771

-140

9 773

45%

Cost of goods for resale and materials sold

32 394

30 422

2 873

32 188

-4 639

-1 972

-6%

Gross profit on sales

120 505

164 732

152 594

12 046

92

44 227

37%

Operating costs

49 480

83 436

71 451

11 945

40

33 956

69%

Selling expenses

39 048

31 229

21 487

9 788

-46

-7 819

-20%

– Cost of product maintenance

11 663

5 814

5 814

-5 849

-50%

Administrative expenses

30 328

54 359

52 183

2 167

9

24 031

79%

– Research works costs

1 430

20 643

20 643

19 213

1 344%

– Stock based incentive programs

1 159

4 083

3 949

134

2 924

252%

Other operating income less expenses

19 896

2 152

2 219

10

-77

-17 744

-89%

– Project Sirius – impairment/adjustment (balance)

18 786

-18 786

-100%

EBIT

71 025

81 296

81 143

101

52

10 271

14%

Financial income less costs

8 825

15 894

15 845

16

33

7 069

80%

Income tax

10 450

-2 872

-2 950

79

-1

-13 322

-127%

– Current income tax

12 681

13 629

13 346

283

948

7%

– Change of deferred tax calculation

-2 231

-16 501

-16 296

-205

-1

-14 270

640%

Net profit

69 400

100 062

99 938

38

86

30 662

44%

Net profitability

39.7%

44.1%

53.4%

0.1%

9

*estimation

CD PROJEKT GROUP – assets

Assets

31.12.2023

31.03.2024

change

change %

Non-current assets

1 450 685

1 471 688

21 003

1%

Expenditure on development projects

527 182

555 264

28 082

5%

– New development during Q1 2024

54 535

– Depreciation during Q1 2024

-26 453

Other financial assets *

455 907

417 019

-38 888

-9%

Property, plant and equipment, investment properties

217 283

234 878

17 595

8%

Deferred tax assets

43 433

59 935

16 502

38%

Other non-current assets

206 880

204 593

-2 288

-1%

Current assets

1 162 815

1 251 531

88 716

8%

Trade receivables

193 520

88 035

-105 485

-55%

Other financial assets *

362 719

426 029

63 310

17%

Cash and bank deposits *

516 259

620 739

104 480

20%

Other current assets

90 317

116 728

26 411

29%

Total assets

2 613 500

2 723 219

109 719

4%

*Cash, bank deposits and bonds – total

1 309 459

1 446 129

136 670

10%

10

All figures in PLN thousands

Equity and liabilities

31.12.2023

31.03.2024

change

change %

Equity

2 403 223

2 507 085

103 862

4%

Liabilities

210 277

216 134

5 857

3%

Liabilities

103 914

95 871

-8 043

-8%

Deferred income

15 485

15 031

-454

-3%

Provisions

90 878

105 232

14 354

16%

Total liabilities and equity

2 613 500

2 723 219

109 719

4%

11

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

12

All figures in PLN thousands

0

2023 Q1

2023 Q2

2023 Q3

2023 Q4

2024 Q1

25 000

50 000

75 000

100 000

CD PROJEKT GROUP

Changes in cash, deposits & bonds

1 309 459

1 446 129

13

All figures in PLN thousands

Total increase in cash, deposits and bonds during Q1 2024:
136 670

100 062

29 950

88 884

-50 303

-13 481

-18 442

1 600 000

1 500 000

1 400 000

1 300 000

1 200 000

Cash, deposits and

bonds 01.01.2024

Net profit

for the period

Depreciation and

amortization

Change in

receivables,

liabilities, provisions

Expenditure on

development

projects

Acquisition

of intangible and

tangible assets

Other

(cumulated)

Cash, deposits

and bonds

31.03.2024

CD PROJEKT GROUP

Changes in cash, deposits & bonds

14

All figures in PLN thousands

+55%

+515m PLN

30.06.2023

30.09.2023

31.12.2023

31.03.2024

0

500 000

1 000 000

1 500 000

1 014 652

930 657

1 309 459

1 446 129

Q
&
A

15

Thank you

ir@cdprojekt.com

karolina.gnas@cdprojekt.com

16

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.

17