CD Projekt Group FY2024 Q3 Earnings Release

CD PROJEKT GROUP

Q3 2024 Earnings

2 6 N O V E M B E R 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

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

3

4

4

5

5

5

6

6

7

Development teams engaged in ongoing projects

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

**Including unannounced projects, also developed by third party (the number of third-party developers involved is not included in this count)

Polaris

Orion

Sirius

Hadar

Shared Services*

Other projects**

No. of

developers

400

64

42

18

107

19

October 31, 2024

650

410

60

42

20

99

8

July 31, 2024

639

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

Q3 2024 vs.

Q3 2024 vs.

Q3 2023

Q3 2024

Q3 2024

Q3 2024

Q3 2024

Q3 2023
[PLN]

Q3 2023
[%]

Sales revenue

442 682

227 555

181 114

49 341

-2 900

-215 127

-49%

Sales of products and services

390 534

180 158

178 906

1 252

-210 376

-54%

– CP 2077 + expansion *

345 841

115 672

114 651

-230 169

-67%

– The Witcher 1, 2, 3 + expansions *

37 860

54 428

54 278

16 569

44%

Sales of goods for resale and materials

51 693

46 385

1 447

49 063

-4 125

-5 308

-10%

Cost of sales

143 167

63 508

30 480

35 950

-2 922

-79 659

-56%

Cost of products and services sold

104 410

29 297

29 347

-50

-75 113

-72%

Cost of goods for resale and materials sold

38 757

34 211

1 133

35 950

-2 872

-4 546

-12%

Gross profit on sales

299 515

164 047

150 634

13 391

22

-135 468

-45%

Operating costs

113 276

83 437

69 250

14 102

85

-29 839

-26%

Selling expenses

66 140

29 195

17 780

11 309

106

-36 945

-56%

– CP IP publishing costs

39 864

4 530

4 530

-35 334

-89%

– Cost of product maintenance

8 677

2 365

2 365

-6 312

-73%

Administrative expenses

51 300

56 890

54 242

2 853

-205

5 590

11%

– Research works costs

4 602

22 578

22 578

17 976

391%

Other operating income less expenses

4 164

2 648

2 772

60

-184

-1 516

-36%

EBIT

186 239

80 610

81 384

-711

-63

-105 629

-57%

Financial income less costs

47 430

11 772

12 239

-492

25

-35 658

-75%

Income tax

30 805

14 275

14 496

-203

-18

-16 530

-54%

Net profit

202 864

78 107

79 127

-1 000

-20

-124 757

-61%

Net profitability

45.8%

34.3%

43.7%

-2.0%

9

*estimation

CD PROJEKT GROUP — Profit and loss account

All figures in PLN thousands

CD PROJEKT GROUP

Q1-Q3 2024 vs.

Q1-Q3 2024 vs.

Q1-Q3 2023

Q1-Q3 2024

Q1-Q3 2023
[PLN]

Q1-Q3 2023
[%]

Sales revenue

767 692

652 375

-115 317

-15%

Sales of products and services

629 675

525 708

– CP 2077 + expansion *

488 399

373 338

– The Witcher 1, 2, 3 + expansions *

115 697

115 713

Sales of goods for resale and materials

138 017

126 667

Cost of sales

251 356

188 326

Cost of products and services sold

148 101

94 962

Cost of goods for resale and materials sold

103 255

93 364

Gross profit on sales

516 336

464 049

Operating costs

235 184

243 175

Selling expenses

152 470

90 073

– CP IP publishing costs

31 120

13 251

– Cost of product maintenance

69 419

19 259

Administrative expenses

111 904

162 917

– Research works costs

7 875

68 496

60 621

770%

Other operating income less expenses

29 190

9 815

EBIT

281 152

220 874

Financial income less costs

69 212

46 405

Income tax

60 383

19 129

Net profit

289 981

248 150

-41 831

-14%

Net profitability

37.8%

38.0%

10

*estimation

CD PROJEKT GROUP – assets

Assets

30.06.2024

30.09.2024

change

change %

Non-current assets

1 525 159

1 488 558

-36 601

-2%

Expenditure on development projects

586 630

631 243

44 613

8%

– New development during Q3 2024

71 216

– Depreciation during Q3 2024

-26 603

Other financial assets *

426 048

340 243

-85 805

-20%

Property, plant and equipment, investment properties

251 769

271 022

19 253

8%

Deferred tax assets

56 481

49 420

-7 061

-13%

Other non-current assets

204 231

196 630

-7 061

-4%

Current assets

1 134 848

1 266 858

132 010

12%

Trade receivables

83 928

81 840

-2 088

-2%

Other financial assets *

457 094

531 087

73 993

16%

Cash and bank deposits *

489 825

543 812

53 987

11%

Other current assets

104 001

110 119

6 118

6%

Total assets

2 660 007

2 755 416

95 409

4%

*Cash, bank deposits and bonds – total

1 365 322

1 401 246

35 924

3%

11

All figures in PLN thousands

Equity and liabilities

30.06.2024

30.09.2024

change

change %

Equity

2 484 354

2 570 916

86 562

3%

Liabilities

175 653

184 500

8 847

5%

Liabilities

95 186

95 251

65

0%

Deferred income

15 812

16 514

702

4%

Provisions

64 655

72 735

8 080

12%

Total liabilities and equity

2 660 007

2 755 416

95 409

4%

12

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

13

All figures in PLN thousands

0

25 000

50 000

75 000

100 000

2024 Q1

2024 Q2

2024 Q3

Cash, deposits

and bonds

01.07.2024

Net profit

for the period

Research

works costs*

Depreciation,

amortization,

incentive

program costs

Change in

receivables,

liabilities,

provisions

Acquisition of

intangible and

tangible assets

Other

(cumulated)

Cash flow

excluding

R&D

Research

works costs*

Expenditure

on development

projects

Cash, deposits

and bonds

30.09.2024

CD PROJEKT GROUP

Changes in cash, deposits & bonds

14

All figures in PLN thousands

1 365 322

36 729

22 578

78 107

9 648

-6 464

-26 826

122 931

-22 578

-64 429

1 401 246

Cash flow excluding R&D costs/expenses during Q3 2024:
122 931

Total increase including R&D costs/expenses during Q3 2024:
35 924

*P&L recognised costs

9 159

Change in other

assets and

liabilities

1 000 000

1 200 000

1 400 000

1 600 000

CD PROJEKT Group

Incentive program B

15

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

64%

remaining

92%

remaining

All figures in PLN thousands

4 000 000

2024-2027

2023 FY Net profit 2024 Q1-Q3 Net profit Remaining results

2023-2026

2025-2028

(proposal, to be voted

at the EGM on Nov 28th)

3 000 000

2 000 000

1 000 000

0

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 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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