Slide 1: CD PROJEKT Capital Group Results in 2016
CD PROJEKT CAPITAL GROUP RESULTS IN 2016 ADAM KICIŃSKI President PIOTR NIELUBOWICZ Vice President, CFO
Slide 2: Agenda
AGENDA Long-term sales of The Witcher series 2016 financial results GOG Galaxy GWENT: The Witcher Card Game Q&A session
Slide 3: The Witcher Series – Annual Revenues
THE WITCHER SERIES – ANNUAL REVENUES The Witcher 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 4: The Witcher Series – Annual Revenues
THE WITCHER SERIES – ANNUAL REVENUES The Witcher The Witcher 2: Assassins of Kings 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 5: The Witcher Series – Annual Revenues
THE WITCHER SERIES – ANNUAL REVENUES The Witcher The Witcher 2: Assassins of Kings The Witcher 3: Wild Hunt + expansion packs 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Slide 6: The Witcher 3: Wild Hunt Sales
THE WITCHER 3: WILD HUNT SALES 1 000 000 000 PLN * CD PROJEKT sales revenues in the period between the game’s release and the end of 2016
Slide 7: The Witcher Trilogy – Copies Sold
THE WITCHER TRILOGY – COPIES SOLD 25 000 000 copies
Slide 8: Financial Results
FINANCIAL RESULTS
Slide 9: CD PROJEKT Group - Summary of Results
CD PROJEKT GROUP - SUMMARY OF RESULTS 2015* 2016 2016/2015 Sales revenues 798 014 583 903 73% CD PROJEKT RED** 681 923 450 260 66% GOG.com** 115 823 133 510 115% Others** 268 133 50% Gross profit from sales 587 393 469 946 80% Selling costs 146 581 141 784 General and administrative expenses 14 520
Slide 10: CD PROJEKT RED - Summary of Results
CD PROJEKT RED - SUMMARY OF RESULTS 2013 2016 2011 2012 2013 / avg. 2015 „the year „the year 2016/2015 W2 PC W2 X360 2011:2012 W3 after” after” Sales revenues 48 655 47 478 23 579 49% 697 033 475 822 68% Gross profit from sales 34 669 31 958 17 242 52% 548 395 427 230 78% Operating costs 11 830 7 42
Slide 11: GOG.com - Summary of Results
GOG.COM - SUMMARY OF RESULTS 2014* 2015* 2016 2016/2014 Sales revenues 63 945 115 823 133 518 209% Gross profit from sales 23 280 39 692 44 580 191% gross profitability of sales 36% 34% 33% operating costs 13 843 26 331 38 181 276% operating costs / revenues 22% 23% 29% EBIT 9 437 13 361 6 399 68% G
Slide 12: CD PROJEKT - Assets and Liabilities
CD PROJEKT - ASSETS AND LIABILITIES 2015* 2016 change % change FIXED ASSETS 137 997 170 644 32 647 24% Expenditures on development projects 33 581 62 011 28 430 85% Other fixed assets 104 416 108 633 4 217 4% WORKING ASSETS 521 178 704 316 183 138 35% trade receivables 22 603 27 971 5 368 24% cash,
Slide 13: Change in Development Expenditures
CHANGE IN DEVELOPMENT EXPENDITURES development projects in progress development projects completed increase reduction 100 000 31 398 75 000 57 960 50 000 1 867 5 098 62 011 25 000 28 483 0 31.12.2015 CD PROJEKT RED increase 31.12.2016
Slide 14: CD PROJEKT Group - Assets and Liabilities
CD PROJEKT GROUP - ASSETS AND LIABILITIES 2015* 2016 change % change FIXED ASSETS 137 997 170 644 32 647 24% Expenditures on development projects 33 581 62 011 28 430 85% Other fixed assets 104 416 108 633 4 217 4% WORKING ASSETS 521 178 704 316 183 138 35% trade receivables 22 603 27 971 5 368 24%
Slide 15: CD PROJEKT Group - Cash Flows
CD PROJEKT GROUP - CASH FLOWS 2015* 2016 Net profit 342 430 250 514 Total adjustments 59 477 8 809 Net cash flows from operating activities 411 985 259 456 Inflows 4 757 47 225 incl. bank deposits with maturity periods beyond 3 months 0 40 000 Outflows 97 123 107 646 incl. development expenses 40 18
Slide 16: Monetary Assets – Cumulative View
MONETARY ASSETS – CUMULATIVE VIEW Expenditures on ongoing development projects Cash and investment Credits and loans 2010 2011 2012 2013 2014 2015 2016
Slide 17: GOG.com
Slide 18: GOG Galaxy - Why It Matters
GOG GALAXY - WHY IT MATTERS GOG Galaxy is a backend technology enabling fluid cross-platform gameplay GOG Galaxy is an integral component of GWENT GOG Galaxy is also an access point to the GOG.com store
Slide 19: GOG.com - The Near Future
GOG.COM - THE NEAR FUTURE GOG Galaxy out of beta in April. - Beta phase to culminate in a major feature update, including: cloud savegame support (also for older games) customizable client software hibernation mode reducing CPU and memory footprint.
Slide 20: GWENT: The Witcher Card Game - Public Beta Spring 2017
THE WITCHER CARD GAME a @XBOXONE P§& Brera PUBLIC BETA - SPRING 2017
Slide 21: GWENT - Global Reach
GWENT - GLOBAL REACH TOP 5 list – revenues*
Slide 22: GWENT - Global Reach
GWENT - GLOBAL REACH TOP 5 list – revenues* USA
Slide 23: GWENT - Global Reach
GWENT - GLOBAL REACH TOP 5 list – revenues* USA Germany
Slide 24: GWENT - Global Reach
GWENT - GLOBAL REACH TOP 5 list – revenues* USA Germany Russia
Slide 25: GWENT - Global Reach
GWENT - GLOBAL REACH TOP 5 list – revenues* USA Germany Russia Poland
Slide 26: GWENT - Global Reach
GWENT - GLOBAL REACH TOP 5 list – revenues* USA Germany Russia Poland United Kingdom
Slide 27: GWENT - Global Reach
GWENT - GLOBAL REACH TOP 5 list – revenues* USA Germany Russia Poland United Kingdom * closed beta (25.10.2016-25.03.2017)
Slide 28: GWENT - First Tournament
GWENT - FIRST TOURNAMENT partnership with ESL prize pool - 100 thousand USD finals - 4 progamers and 4 winners of the open playoff phase live steam on twitch.com
Slide 29: Q&A Session
Q&A SESSION
Slide 30: Thank You
THANK YOU IR contact: KAROLINA GNAŚ karolina.gnas@cdprojekt.com
Slide 31: Legal Disclaimer
LEGAL DISCLAIMER The information presented in this presentation reflects current conditions (March 2017) and projections based on current conditions, which are liable to change. All forward-looking statements and claims are rooted in subjective assessments and opinions concerning future events and c