Slide 1: CD PROJEKT Group H1 2022 Earnings
CD PROJEKT Group CD PROJEKT Group H1 2022 Earnings H1 2022 Earnings 7 September 2022 7 September 2022 ADAM KICIŃSKI // PRESIDENT, JOINT ADAM KICIŃSKI // PRESIDENT, JOINT CEO PIOTR NIELUBOWICZ // MEMBER OF THE PIOTR NIELUBOWICZ // MEMBER OF THE BOARD, CFO MICHAŁ NOWAKOWSKI // MEMBER OF THE MICHAŁ NOW
Slide 2: H1 2022: Parallel Development Kicks Off
H1 2022: PARALLEL DEVELOPMENT KICKS OFF Parallel development: two teams working on two separate projects Launch of 1.5 next-gen update Strategic partnership with Epic Games on using Unreal Engine in our upcoming games Announcement of the new Witcher game – a new saga begins 2
Slide 3: Sept 13
SEPT 13
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Slide 6: Development Teams Engaged in Ongoing Projects
DEVELOPMENT TEAMS ENGAGED IN ONGOING PROJECTS 31 December 2020 30 June 2021* 31 December 2021* 31 July 2022 Support for Cyberpunk 2077 + next-gen version GWENT-related projects SPOKKO Phantom Liberty – expansion to CP Other projects The new Witcher game The Molasses Flood project W3 next-gen version
Slide 7: Target Date Q4 2022
ENHANCED ADDED CONTENT FOR NEXT-GEN TARGET DATE Q4 2022 7
Slide 8: CD PROJEKT Group Strategy Update
CD PROJEKT GROUP STRATEGY UPDATE OCTOBER 2022 8
Slide 9: Financial Results of the Group
FINANCIAL RESULTS OF THE CD PROJEKT GROUP FINANCIAL RESULTS OF THE CD PROJEKT GROUP 9
Slide 10: CD PROJEKT Group — Profit and Loss Account
CD PROJEKT GROUP — PROFIT AND LOSS ACCOUNT CD PROJEKT Group RED GOG H1 2022 H1 2021 H1 2022 H1 2022 H1 2022 eliminations VS. H1 2021 Sales revenue 470 617 377 916 295 488 88 751 -6 323 -20% Sales of products 366 986 285 868 283 471 0 2 397 -22% – rev. from unused CP77 sales provisions – decrease 39
Slide 11: CD PROJEKT Group – Assets
CD PROJEKT GROUP – ASSETS Assets 31.12.2021 30.06.2022 CHANGE CHANGE % Non-current assets 905 846 1 039 127 133 281 15% Expenditure on development projects 350 195 434 055 83 860 24% – New development during H1 2022 121 007 – Amortisation during H1 2022 -36 837 Other financial assets * 178 540 173 5
Slide 12: CD PROJEKT Group – Equity and Liabilities
CD PROJEKT GROUP – EQUITY AND LIABILITIES Equity and liabilities 31.12.2021 30.06.2022 CHANGE CHANGE % Equity 1 894 356 1 903 244 8 888 0% Liabilities 264 379 293 422 29 043 11% Liabilities 137 610 230 442 92 832 67% Deferred income 37 972 23 186 -14 786 -39% Provisions 88 797 39 794 -49 003 -55% –
Slide 13: CD PROJEKT RED — Product Research, Development & Service Costs
CD PROJEKT RED — PRODUCT RESEARCH, DEVELOPMENT & SERVICE COSTS 120 000 Service costs – released products (P&L – Selling costs) Research costs – new projects (P&L – G&A costs) W3NG – outsourcing expenses – new products (Assets – capitalised) CP Edgerunners – outsourcing expenses – new products (Asset
Slide 14: CD PROJEKT Group — Cash Flow
CD PROJEKT GROUP — CASH FLOW 1 700 000 72 643 42 664 1 400 000 89 710 43 561 113 746 25 621 19 767 17 500 10 499 1 100 000 Total increase of cash, deposits and T-bonds during 2022 H1: 24 189 800 000 1 154 001 1 178 190 CASH, DEPOSITS NET PROFIT DEPRECIATION CHANGE IN CHANGE IN EXPENDITURE ACQUISITIO
Slide 15: Thank You
THANK YOU IR@CDPROJEKT.COM KAROLINA.GNAS@CDPROJEKT.COM 15
Slide 16: Legal Disclaimer
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