Interim report
Page 2
Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. 2 Disclaimer This English language translation has been prepared solely for the convenience of English speaking readers. Despite all the efforts devoted to this translation, certain discrepancies, omissions or approximations may exist. In case of any differences between the Polish and the English versions, the Polish version shall prevail. CD PROJEKT, its representatives and employees decline all responsibility in this regard.
Page 3
3 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. CD PROJEKT Group - Selected financial data translated into EUR PLN EUR 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Net sales of products, services, goods for resale and materials 226 305 226 785 54 078 52 483 Cost of sales of products, services, goods for resale and materials 46 463 62 053 11 103 14 360 Operating profit/(loss) 95 594 81 296 22 843 18 814 Profit/(loss) before tax 113 311 97 190 27 077 22 492 Net profit/(loss) attributable to owners of CD PROJEKT S.A. 86 003 100 062 20 551 23 157 Net cash from operating activities 151 112 180 995 36 109 41 886 Net cash from investing activities (57 766) (234 148) (13 804) (54 187) Net cash from financing activities (950) (1 139) (226) (263) Net increase/(decrease) in cash and cash equivalents 92 396 (54 292) 22 079 (12 564) Number of shares (in thousands) 99 911 99 911 99 911 99 911 Net earnings/(loss) per share (in PLN/EUR) 0.86 1.00 0.21 0.23 Diluted earnings/(loss) per share (in PLN/EUR) 0.85 1.00 0.20 0.23 Book value per share (in PLN/EUR) 28.95 25.09 6.92 5.83 Diluted book value per share (in PLN/EUR) 28.75 25.09 6.87 5.83 Dividend declared or paid per share (in PLN/EUR) - 1.00 - 0.23 PLN EUR 31.03.2025 31.12.2024 31.03.2025 31.12.2024 Total assets 3 119 131 3 042 424 745 508 712 011 Liabilities and provisions for liabilities (excluding accruals) 207 447 224 917 49 583 52 637 Non-current liabilities 22 348 22 574 5 341 5 283 Current liabilities 204 205 219 183 48 808 51 295 Equity 2 892 578 2 800 667 691 359 655 433 Share capital 99 911 99 911 23 880 23 382 The financial data presented above was translated into EUR as follows: Items of the interim condensed consolidated income statement and the interim condensed consolidated statement of cash flows were translated at exchange rates calculated as an arithmetic mean of the exchange rates announced by the National Bank of Poland for the euro applicable as at the last day of each month in a given reporting period. These rates were, respectively, as follows: from 1 January to 31 March 2025: 4.1848 PLN/EUR and from 1 January to 31 March 2024: 4.3211 PLN/EUR. Items of assets, liabilities and equity in the interim condensed consolidated statement of financial position were translated at exchange rates announced by the National Bank of Poland for the euro applicable as at the last day of the reporting period. These rates were, respectively, as follows: 4.1839 PLN/EUR as at 31 March 2025 and 4.273 PLN/EUR as at 31 December 2024.
Page 4
4 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Table of contents Key financial data of the CD PROJEKT Group ................................................................................................................................................................. 6 Interim condensed consolidated income statement................................................................................................................................................. 7 Interim condensed consolidated statement of comprehensive income ........................................................................................................... 8 Interim condensed consolidated statement of financial position ........................................................................................................................ 9 Interim condensed statement of changes in consolidated equity....................................................................................................................... 11 Interim condensed consolidated statement of cash flows.................................................................................................................................... 14 Explanatory notes to the interim condensed consolidated financial statements ................................................................................................ 17 General information .......................................................................................................................................................................................................... 18 Presentation of the Group ............................................................................................................................................................................................... 18 Consolidation policies ...................................................................................................................................................................................................... 19 Consolidated companies .......................................................................................................................................................................................... 19 Subsidiaries .................................................................................................................................................................................................................. 19 Basis of preparation of the interim condensed consolidated financial statements .....................................................................................20 Going concern assumption ............................................................................................................................................................................................20 Compliance with the International Financial Reporting Standards ...................................................................................................................20 Amendments to standards or interpretations effective from 1 January 2025 applicable and adopted by the Group ............... 20 Functional currency and presentation currency....................................................................................................................................................... 21 Functional currency and presentation currency ............................................................................................................................................... 21 Transactions and balances ...................................................................................................................................................................................... 21 Assumption of comparability of the financial statements and consistency of accounting policies .......................................................... 21 Presentation changes ............................................................................................................................................................................................... 22 Audit by the registered auditor ..................................................................................................................................................................................... 22 Notes – operating segments of the CD PROJEKT Group .......................................................................................................................................... 23 Operating segments ........................................................................................................................................................................................................ 24 Information on individual operating segments ................................................................................................................................................. 25 Consolidated income statement by segment for the period from 01.01.2025 to 31.03.2025 ........................................................... 29 Consolidated income statement by segment for the period from 01.01.2024 to 31.03.2024 ............................................................ 30 Consolidated statement of financial position by segment as at 31.03.2025 ............................................................................................ 31 Consolidated statement of financial position by segment as at 31.12.2024* ........................................................................................... 33 Consolidated statement of financial position by segment as at 31.03.2024 ............................................................................................35 Operating segments .................................................................................................................................................................................................. 37 Description of the Issuer’s major achievements or failures in the first quarter of 2025 by operating segment ...........................38 Factors affecting the Group’s future performance .......................................................................................................................................... 40 Seasonality or cyclicality of the Group’s operations ....................................................................................................................................... 40 Key customers .............................................................................................................................................................................................................42 Notes – other explanatory notes to the interim condensed consolidated financial statements .................................................................... 43 Note 1. Description of those items affecting assets, liabilities, equity, net profit or loss and cash flows which are not typical in terms of their type, size and impact ..................................................................................................................................... 44 Note 2. Property, plant and equipment .............................................................................................................................................................. 45 Note 3. Intangible assets and expenditure on development projects ....................................................................................................... 47 Note 4. Goodwill..........................................................................................................................................................................................................48 Note 5. Investment properties ................................................................................................................................................................................48 Note 6. Inventories .................................................................................................................................................................................................... 49 Note 7. Trade and other receivables ................................................................................................................................................................... 49 Note 8. Other financial assets ................................................................................................................................................................................. 51 Note 9. Prepayments and deferred costs .......................................................................................................................................................... 52 Note 10. Deferred income tax .................................................................................................................................................................................53 Note 11. Share capital ................................................................................................................................................................................................ 55 Note 12. Provision for retirement and similar benefits.................................................................................................................................... 55 Note 13. Other provisions ........................................................................................................................................................................................ 55 Note 14. Other liabilities ........................................................................................................................................................................................... 56 Note 15. Deferred income ........................................................................................................................................................................................ 57 Note 16. Information on financial instruments .................................................................................................................................................... 57 Note 17. Sales revenue............................................................................................................................................................................................. 59 Note 18. Operating expenses ................................................................................................................................................................................ 60 Note 19. Other operating income and expenses .............................................................................................................................................. 61 Note 20. Finance income and finance costs ..................................................................................................................................................... 62 Note 21. Leases of low-value assets and short-term leases ......................................................................................................................... 63 Note 22. Issuance, redemption and repayment of debt and equity securities ...................................................................................... 63 Note 23. Dividend paid (or declared) and received ........................................................................................................................................ 63 Note 24. Transactions with related entities ....................................................................................................................................................... 63
Page 5
5 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 25. Unpaid loans or defaults on loan agreements in the cases where no corrective measures were adopted by the balance sheet date ..................................................................................................................................................................... 66 Note 26. Changes in contingent liabilities or contingent assets which occurred after the end of the last financial year ......... 67 Note 27. Changes in the structure of the Group and Group companies during the reporting period ............................................ 68 Note 28. Agreements that may result in future changes in the proportions of shares held by shareholders and bondholders ........................................................................................................................................................................................................ 68 Note 29. Tax settlements .......................................................................................................................................................................................... 71 Note 30. Explanations to the condensed consolidated statement of cash flows................................................................................... 72 Note 31. Cash flows and non-monetary changes resulting from changes in liabilities in financing activities ................................ 74 Note 32. Post balance sheet events ..................................................................................................................................................................... 75 Additional information ........................................................................................................................................................................................................... 76 Litigation pending ....................................................................................................................................................................................................... 77 Shareholding structure .................................................................................................................................................................................................... 78 Parent Company’s shares held by the members of the Management Board and the Supervisory Board ..................................... 79 Reference to published estimates ............................................................................................................................................................................... 79 Interim condensed separate financial statements of CD PROJEKT S.A. ...............................................................................................................80 Interim condensed separate income statement....................................................................................................................................................... 81 Interim condensed separate statement of comprehensive income .................................................................................................................. 81 Interim condensed separate statement of financial position .............................................................................................................................. 82 Interim condensed separate statement of changes in equity............................................................................................................................. 84 Interim condensed separate statement of cash flows .......................................................................................................................................... 86 Assumption of comparability of the financial statements and consistency of accounting policies ......................................................... 88 Presentation changes ............................................................................................................................................................................................... 88 Notes to the separate financial statements of CD PROJEKT S.A. ..................................................................................................................... 89 A. Deferred tax ........................................................................................................................................................................................................... 89 B. Other provisions ..................................................................................................................................................................................................... 91 C. Goodwill .................................................................................................................................................................................................................... 91 D. Business combinations ........................................................................................................................................................................................ 91 E. Dividend paid (or declared) and received ...................................................................................................................................................... 91 F. Trade and other receivables ............................................................................................................................................................................. 92 G. Information on financial instruments .............................................................................................................................................................. 94 H. Transactions with related entities .................................................................................................................................................................... 97 Statement of the Management Board of the Parent Company .......................................................................................................................... 99 Approval of the financial statements ........................................................................................................................................................................ 100
Page 6
Key financial data of the CD PROJEKT Group 1
Page 7
7 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Interim condensed consolidated income statement Note 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Sales revenue 226 305 226 785 Sales of products 17 179 832 185 591 Sales of services 17 1 369 628 Sales of goods for resale and materials 17 45 104 40 566 Cost of sales of products, services, goods for resale and materials 46 463 62 053 Costs of products and services sold 18 12 281 31 631 Cost of goods for resale and materials sold 18 34 182 30 422 Gross profit/(loss) on sales 179 842 164 732 Selling expenses 18 31 670 31 229 Total administrative expenses, including: 18 53 028 54 359 cost of research projects 18 8 186 20 643 Other operating income 19 1 937 3 524 Other operating expenses 19 1 494 1 371 (Impairment)/reversal of impairment of financial instruments 7 (1) Operating profit/(loss) 95 594 81 296 Finance income 20 39 953 20 107 Finance costs 20 22 236 4 213 Profit/(loss) before tax 113 311 97 190 Income tax 10 27 308 (2 872) Net profit/(loss) 86 003 100 062 Net profit/(loss) attributable to owners of CD PROJEKT S.A. 86 003 100 062 Net earnings/(loss) per share (in PLN) Basic for the reporting period 0.86 1.00 Diluted for the reporting period 0.85 1.00 The Group’s total Sales revenue in the first quarter of 2025 was comparable to the first quarter of last year, mainly due to continued strong sales of Cyberpunk 2077, including the Phantom Liberty expansion. Sales of products had the largest share in the CD PROJEKT Group’s sales revenue for the period under review and primarily related to: a) royalties resulting from the sale of Cyberpunk 2077, including the Phantom Liberty expansion; b) royalties resulting from the sale of The Witcher 3: Wild Hunt, including the expansions: Hearts of Stone and Blood and Wine; c) licence revenue from CD PROJEKT RED studio franchises; d) revenue related to other products of the CD PROJEKT RED segment: the GWENT games: The Witcher Card Game, The Witcher 2: The Assassins of Kings, The Witcher and Thronebreaker: The Witcher Tales. In Sales of goods for resale and materials, the Group presents mainly revenue from the digital distribution of games from external suppliers to end customers executed via the GOG.COM platform. The Cost of products and services sold, where the cost of amortization of expenditure on development projects (primarily the cost of own games developed in the CD PROJEKT RED segment) is presented, is the first component of the Group’s Cost of sales of products, services, goods for resale and materials. The value of the said item in the first quarter of 2025 comprised mainly the amortization of expenditure on the Cyberpunk 2077, including its expansion Phantom Liberty. The decrease compared to the first quarter of 2024 is due to the segment’s plan of adopting reducing balance amortization for its main products. The Cost of goods for resale and materials sold represents mainly the cost of games from external suppliers sold via the GOG.COM platform.
Page 8
8 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. In the first quarter of 2025, the largest component of the Selling expenses reported in the CD PROJEKT RED segment comprised costs relating to the publishing activities, advertising and promotion of own titles, including salaries and wages of the int ernal publishing department teams and other external sales promotion services. The second significant category of the Selling expenses represents costs recognized in the GOG.COM segment in respect of the development and processing of sales executed through that platform (including salaries and wages and costs of payment and data transmission services providers) and costs of marketing activities relating to the GOG.COM platform (including external marketing services and salaries and wages). In addition, this item comprises costs of maintenance of released titles, mainly the maintenance costs of the Cyberpunk 2077 game, including its expansion Phantom Liberty. Compared with the first quarter of 2024, the value of Selling expenses did not change significantly. Administrative expenses of the CD PROJEKT Group comprise mainly: a) remuneration of the administrative teams and the external costs of third party services classified in this category which, in step with an increase in the scale of operations of the Group companies, are growing gradually; b) costs of research work on new technologies and work on the future games incurred at an initial stage (research phase) preceding the execution of the projects (development phase) and the start of their capitalization as part of Expenditure on development projects forming part of Non-current assets; a decrease in expenditure on research projects compared to the comparative period is mainly due to the Orion project closing the research phase and entering the development phase in September 2024; c) remuneration of the management (including performance-related remuneration for a given period); d) the cost associated with the functioning of the Incentive Plans A and B based on entitlements to the Company’s shares. As regards Other operating income and expenses, the Group recognized mainly the income obtained by CD PROJEKT in respect of the tax relief for innovative employees and from the lease of office space (and the accompanying maintenance costs) in the real estate complex located at ul. Jagiellońska 74 and 76 in Warsaw. In the period discussed, the Group reported an excess of Finance income over Finance costs. The excess comprised mainly interest on bonds and deposits with banks exceeding net foreign exchange losses, including the settlement and measurement of derivative financial instruments hedging foreign exchange risk. The high amount of Income tax and the effective tax rate of 24.1% in the first quarter of 2025 was due to adjustments relating to previous years in the total amount of PLN 21 847 thousand resulting primarily from adjustments to the accounting treatment of withholding tax (as a result of a mistake in the estimation of income tax, an amount of withholding tax refunded in 2024 of PLN 11 082 thousand for 2022 and PLN 14 710 thousand for 2023 was erroneously deducted). The Group’s consolidated net profit for the first quarter of 2025 amounted to PLN 86 003 thousand and was 14.1% lower than in the first quarter of 2024. The main reason for the lower net profit with comparable sales revenue, a higher operating profit and profit before tax was the higher amount of income tax compared with the comparative period. Interim condensed consolidated statement of comprehensive income 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Net profit/(loss) 86 003 100 062 Other comprehensive income subject to reclassification to gains or losses after specific conditions have been met: (1 751) (283) Exchange differences on measurement of foreign operations (2 875) 406 Measurement of derivative financial instruments - fair value through other comprehensive income, taking into account the tax effect 1 124 (689) Other comprehensive income not subject to reclassification to gains or losses - - Total comprehensive income 84 252 99 779 Total comprehensive income attributable to non-controlling interests - - Total comprehensive income attributable to owners of CD PROJEKT S.A. 84 252 99 779
Page 9
9 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Interim condensed consolidated statement of financial position Note 31.03.2025 31.12.2024* 31.03.2024 NON-CURRENT ASSETS 1 729 873 1 574 164 1 471 688 Property, plant and equipment 2 284 687 262 913 201 020 Intangible assets 3 68 572 69 305 70 626 Expenditure on development projects 3 785 199 695 421 555 264 Investment properties 5 31 319 31 670 33 858 Goodwill 3,4 56 438 56 438 56 438 Shares in non-consolidated subordinated entities 16 40 598 39 453 38 409 Prepayments and deferred costs 9 23 305 24 431 38 739 Other financial assets 8,16 329 876 292 137 417 019 Deferred tax assets 10 109 474 101 989 59 935 Other receivables 7,16 405 407 380 CURRENT ASSETS 1 389 258 1 468 260 1 251 531 Inventories 6 660 1 802 3 260 Trade receivables 7,16 87 603 167 628 88 035 Current income tax receivable 36 15 211 13 948 Other receivables 7 100 958 69 721 69 614 Prepayments and deferred costs 9 25 206 25 868 29 906 Other financial assets 8,16 470 167 540 620 426 029 Bank deposits over 3 months 16 487 346 522 524 496 977 Cash and cash equivalents 16 217 282 124 886 123 762 TOTAL ASSETS 3 119 131 3 042 424 2 723 219 * restated data Expenditure on development projects , in which the Group recognizes incurred and deferred expenditure on the production of products in the development phase and new technologies, and expenditure on the production of completed projects not yet fully amortized as at the balance sheet date, represented the largest share of the Group’s non -current assets at the end of the first quarter of 2025, and had the largest impact on the increase in their balance. The increase in the value of the item in question in the reporting period is mainly the result the CD PROJEKT RED segment incurring expenditure on the production of future products which is higher than the amortization of completed productions. The increase in the balance of CD PROJEKT Group’s Property, plant and equipment is associated mainly with expenditure on construction work on the CD PROJEKT campus in Warsaw (assets under construction). The balance of current and non- current Other financial assets consists primarily of domestic and foreign government bonds acquired as part of credit risk diversification, together with the valuation of derivative financial instruments hedging the currency risk of foreign bonds. The consolidated current and non -current Prepayments and deferred costs recognized at the end of the period under analysis comprised mainly the value of the so-called minimum guarantees disclosed in the GOG.COM segment, i.e. advance payments and prepayments made by GOG.COM to suppliers for fees related to the distribution of games offered on the GOG.COM platform. The Group also recognizes the settlement of utility software subscriptions under this heading. The consolidated balance of Trade receivables decreased significantly compared with 31 December 2024 mainly as a result of the inflow of receivables in the CD PROJEKT RED segment for the sale of games in the seasonally significant fourth quarter of 2024. As at the end of March 2025, the Group’s Other liabilities included, in particular, tax receivables and advance payments made by CD PROJEKT RED in respect of purchases of goods for resale and services and development projects, which are mainly responsible for the increase in the balance compared with 31 December 2024. The total value of financial reserves in the form of Cash and cash equivalents, bank deposits over 3 months and liquid financial assets in the form of purchased Treasury bonds (collectively included in current and non -current Other financial assets) held by the Group as at 31 March 2025 amounted to PLN 1 489 078 thousand (compared with PLN 1 472 034 thousand as at 31 December 2024).
Page 10
10 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 31.03.2025 31.12.2024 31.03.2024 EQUITY 2 892 578 2 800 667 2 507 085 Equity of the shareholders of CD PROJEKT S.A. 2 892 578 2 800 667 2 507 085 Share capital 11,22 99 911 99 911 99 911 Supplementary capital 2 069 034 2 069 034 1 714 604 Share premium 116 700 116 700 116 700 Other reserves 57 800 49 017 26 563 Foreign exchange differences on translation (2 444) 431 (796) Retained earnings / (Accumulated losses) 465 574 (4 300) 450 041 Net profit (loss) for the period 86 003 469 874 100 062 Non-controlling interests - - - NON-CURRENT LIABILITIES 22 348 22 574 35 814 Other financial liabilities 16 17 243 17 706 17 912 Other liabilities 14 2 212 2 274 2 434 Deferred tax provisions 10 151 67 - Deferred income 15 1 880 1 665 2 153 Provision for pension and similar benefits 12 862 862 518 Other provisions 13 - - 12 797 CURRENT LIABILITIES 204 205 219 183 180 320 Other financial liabilities 16 4 713 12 408 4 904 Trade payables 16 49 332 74 733 59 445 Current income tax liabilities 2 023 782 240 Other liabilities 14 9 476 12 924 10 936 Deferred income 15 17 226 15 175 12 878 Provision for pensions and similar benefits 12 11 898 8 740 8 768 Other provisions 13 109 537 94 421 83 149 TOTAL EQUITY AND LIABILITIES 3 119 131 3 042 424 2 723 219 As at the end of the first quarter of 2025, the Equity of the CD PROJEKT Group amounted to PLN 2 892 578 thousand and was PLN 91 911 thousand higher than at the end of 2024, which was mainly influenced by the Net profit (loss) for the period. The balance of current and non-current Other financial liabilities as at 31 March 2025 results mainly from the liabilities in respect of perpetual usufruct of land at the Jagiellońska 74 and Jagiellońska 76 complexes in Warsaw. The balance of the Group’s Trade payables comprises mainly liabilities of the GOG.COM segment resulting from royalties relating to sales made in the first quarter of 2025 and current trade payables of the DC PROJEKT RED segment. The sum of the Group’s Other liabilities in the period discussed comprised mainly current social security liabilities and tax liabilities (VAT, PIT, withholding tax). The balance of the CD PROJEKT Group’s Deferred income as at the end of March 2025 mainly consists of: a) CD PROJEKT RED and GOG.COM – sales relating to future periods – the so-called minimum guarantees, i.e. advances towards royalties related to sales in future periods, received or receivable from publishers and distribution partners and the value of pre-orders for games with a release date in future periods, placed by customers; b) GOG.COM - deferred income relating to the company’s customers (GOG Portfolio); c) CD PROJEKT RED – deferred income concerning subsidies. The balance of current and non-current Provisions for retirement and similar benefits includes primarily a holiday pay provision. The balance of the CD PROJEKT Group’s Other provisions as at the end of the first quarter of 2025 comprised mainly items relating to the CD PROJEKT RED segment, primarily a provision for unpaid remuneration contingent on the result for 2024 and for the current period, as well as provisions for external services and other costs.
Page 11
11 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Interim condensed statement of changes in consolidated equity Share capital Supplementary capital Share premium Other reserves Foreign exchange differences on translation Retained earnings / (Accumulated losses) Net profit (loss) for the period Equity of the shareholders of CD PROJEKT S.A. Non-controlling interests Total equity 01.01.2025 – 31.03.2025 Equity as at 01.01.2025 99 911 2 069 034 116 700 49 017 431 465 574 - 2 800 667 - 2 800 667 Costs of the incentive plan - - - 7 659 - - - 7 659 - 7 659 Total comprehensive income - - - 1 124 (2 875) - 86 003 84 252 - 84 252 Equity as at 31.03.2025 99 911 2 069 034 116 700 57 800 (2 444) 465 574 86 003 2 892 578 - 2 892 578
Page 12
12 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Share capital Supplementary capital Share premium Other reserves Foreign exchange differences on translation Retained earnings / (Accumulated losses) Net profit (loss) for the period Equity of the shareholders of CD PROJEKT S.A. Non-controlling interests Total equity 01.01.2024 – 31.12.2024 Equity as at 01.01.2024 99 911 1 714 604 116 700 23 169 (1 202) 450 308 - 2 403 490 - 2 403 490 Corrections of errors - - - - - (267) - (267) - (267) Equity, as adjusted 99 911 1 714 604 116 700 23 169 (1 202) 450 041 - 2 403 223 - 2 403 223 Costs of the incentive plan - - - 23 577 - - - 23 577 - 23 577 Payment of dividend - - - - - (99 911) - (99 911) - (99 911) Appropriation of the net profit/offset of loss - 354 430 - - - (354 430) - - - - Total comprehensive income - - - 2 271 1 633 - 469 874 473 778 - 473 778 Equity as at 31.12.2024 99 911 2 069 034 116 700 49 017 431 (4 300) 469 874 2 800 667 - 2 800 667
Page 13
13 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Share capital Supplementary capital Share premium Other reserves Foreign exchange differences on translation Retained earnings / (Accumulated losses) Net profit (loss) for the period Equity of the shareholders of CD PROJEKT S.A. Non-controlling interests Total equity 01.01.2024 – 31.03.2024 Equity as at 01.01.2024 99 911 1 714 604 116 700 23 169 (1 202) 450 308 - 2 403 490 - 2 403 490 Corrections of errors - - - - - (267) - (267) - (267) Equity, as adjusted 99 911 1 714 604 116 700 23 169 (1 202) 450 041 - 2 403 223 - 2 403 223 Costs of the incentive plan - - - 4 083 - - - 4 083 - 4 083 Total comprehensive income - - - (689) 406 - 100 062 99 779 - 99 779 Equity as at 31.03.2024 99 911 1 714 604 116 700 26 563 (796) 450 041 100 062 2 507 085 - 2 507 085
Page 14
14 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Interim condensed consolidated statement of cash flows Note 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 OPERATING ACTIVITIES Net profit /(loss) 86 003 100 062 Total adjustments: 30 51 356 107 999 Depreciation and amortization of property, plant and equipment, intangible assets, expenditure on development projects and investment properties 2 968 3 586 Amortization of development projects recognized as cost of sales 13 775 26 364 Foreign exchange (gains)/losses 17 921 (3 716) Interest and shares in profits (18 462) (16 176) (Gains)/losses on investing activities (18 219) 3 394 Increase/(Decrease) in provisions 9 193 11 994 (Increase)/Decrease in inventories 1 142 316 (Increase)/Decrease in receivables 52 095 92 246 Increase/(Decrease) in liabilities, excluding loans and borrowings (21 566) (15 361) Change in other assets and liabilities 3 996 618 Other adjustments 8 513 4 734 Cash from operating activities 137 359 208 061 Income tax expense 22 553 (5 348) Withholding tax paid abroad 4 755 2 476 Income tax (paid)/refunded (13 555) (24 194) Net cash from operating activities 151 112 180 995
Page 15
15 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 INVESTING ACTIVITIES Inflows 357 599 168 704 Sale of intangible assets and property, plant and equipment 191 13 Repayment of loans granted 455 - Expiry of bank deposits over 3 months 278 634 145 154 Redemption of bonds 66 000 10 000 Interest on bonds 2 770 1 618 Interest received on deposits 9 136 7 392 Inflows from execution of forward contracts 366 4 450 Other inflows from investing activities 47 77 Outflows 415 365 402 852 Acquisition of intangible assets and property, plant and equipment 36 314 13 334 Expenditure on development projects 99 711 50 303 Expenditure on intangible assets - 147 Purchase of shares in a subsidiary - 3 168 Placement of bank deposits over 3 months 248 194 302 854 Purchase of bonds and cost of their purchase 31 146 33 046 Net cash from investing activities (57 766) (234 148) FINANCING ACTIVITIES Inflows 9 4 Settlement of lease receivables 8 3 Interest received 1 1 Outflows 959 1 143 Payment of lease liabilities 800 932 Interest paid 159 211 Net cash used in financing activities 31 (950) (1 139) Net increase/(decrease) in cash and cash equivalents 92 396 (54 292) Change in cash and cash equivalents in the balance sheet 92 396 (54 292) Cash and cash equivalents as at the beginning of the period 124 886 178 054 Cash and cash equivalents as at the end of the period 217 282 123 762
Page 16
16 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. In the first quarter of 2025 under analysis, the CD PROJEKT Group reported positive net cash flows from operating activities of PLN 151 112 thousand. The consolidated net profit (loss) for the period was adjusted for: a) Non-cash items (total increase): Amortization and depreciation; Amortization of development projects recognized as cost of sales, consisting mainly of the amortization of expenditure on development projects relating to Cyberpunk 2077, including the Phantom Liberty expansion; Foreign exchange (gains)/losses, an increase resulting from the elimination of foreign exchange differences recognized in the income statement from the valuation of foreign Treasury bonds and bank deposits held by the CD PROJEKT RED segment; (Increase)/decrease in provisions , an increase resulting mainly from an increase in provisions for liabilities and holiday pay; Other adjustments, an increase resulting mainly from the elimination of accounting for costs of the incentive plan. b) Items related to changes in current assets and current liabilities (total increase): (Increase)/decrease in inventories, an increase in the balance of cash flows as a result of a decrease in stocks; (Increase)/decrease in receivables, an increase in the balance of cash flows resulting primarily from a decrease in the balance of receivables at the end of the first quarter of 2025 related to the receipt of royalties reported for the fourth quarter of 2024 in the CD PROJEKT RED segment; Increase/(decrease) in liabilities except for loans and borrowings, a decrease in the balance of cash flows as a consequence of a decrease in the Group’s liabilities; Change in other assets and liabilities, an increase. c) Items recognized in other sections of the statement of cash flows – Interest and shares in profits, resulting in a decrease in the cash flows reported under operating activities and (Gains)/losses on investing activities, a decrease. d) A difference between the corporate income tax recognized in the income statement and the tax actually paid in the first quarter of 2025, taking into account settlements related to withholding tax. The balance of Net cash outflows on investing activities during the first quarter of the current year was mainly due the negative cash flows associated with the Expenditure on development projects incurred and Acquisition of property, plant and equipment, which exceeded the balance of inflows and outflows related to bank deposits and bonds. In the first quarter of 2025 under analysis, the CD PROJEKT Group did not generate any significant Net cash flows from financing activities. Total Net cash inflows for the first quarter of the current year amounted to PLN 92 396 thousand.
Page 17
Explanatory notes to the interim condensed consolidated financial statements 2
Page 18
18 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. General information Name of reporting entity: CD PROJEKT S.A. (there have been no changes in the name of the reporting entity since the end of the prior reporting period) Legal form: a joint stock company (spółka akcyjna) Registered office: ul. Jagiellońska 74, 03-301 Warsaw Country of registration: Poland Core activities: CD PROJEKT S.A. is the holding company of the CD PROJEKT Group which operates in the CD PROJEKT RED and GOG.COM segments. Principal place of business: Warsaw Registration body: District Court for the Capital City of Warsaw in Warsaw, 14th Business Department of the National Court Register Statistical number REGON: 492707333 Tax identification number (NIP): 7342867148 Number in the BDO register (national waste management database): 000141053 Duration of the Group: unspecified Name of parent entity: CD PROJEKT S.A. Name of the ultimate parent of the Group: CD PROJEKT S.A. Presentation of the Group Related companies – as at 31 March 2025 CD PROJEKT S.A. GOG sp. z o.o. CD PROJEKT RED Inc. The Molasses Flood LLC CD PROJEKT SILVER Inc. CD PROJEKT RED Canada Ltd.
Page 19
19 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Consolidation policies Consolidated companies As at 31.03.2025 % share in capital % share of voting rights consolidation method CD PROJEKT S.A. parent entity - - GOG sp. z o.o. 100% 100% acquisition accounting CD PROJEKT RED Inc. 100% 100% acquisition accounting CD PROJEKT RED Canada Ltd. 100% 100% not consolidated The Molasses Flood LLC 100% 100% not consolidated CD PROJEKT SILVER Inc. 100% 100% not consolidated In accordance with the accounting policy adopted by the Group, the parent entity does not have to consolidate a subsidiary using the acquisition accounting method if: the subsidiary’s share in the parent entity’s total assets does not exceed 3%; the subsidiary’s share in the parent entity’s sales revenue and financial transactions does not exceed 3%, where those transactions between the subsidiary and its parent entity which would be eliminated during consolidation are not taken into account when determining whether the said thresholds have been exceeded. In total, the financial data of the subsidiaries eliminated from consolidation may not exceed: 6% of the share in the parent entity’s total assets; 6% of the share in the parent entity’s sales revenue and financial transactions, where those transactions between the subsidiary and its parent entity which would be eliminated during consolidation are not taken into account when determining whether the said thresholds have been exceeded. Subsidiaries Subsidiaries are all and any entities over which the Group has control which manifests itself by, simultaneously: having power, consisting of having substantive rights that give the Group the current ability to manage the relevant activities, i.e. those activities which significantly affect the entity’s financial results; being exposed or having rights to variable returns, consisting of having the potential to change the financial results of the Group depending on the results of the subsidiary; having the ability to use the power exercised to affect its returns from the subsidiary by using its power in order to affect the financial results attributable to the Group resulting from the involvement in the subsidiary. Subsidiaries which meet the above -mentioned materiality criterion are fully consolidated from the date on which the Group assumed control over them. They cease to be consolidated from the date that control ceases. Revenue and costs, receivables and payables and unrealized gains on transactions between Group companies are eliminated for the purposes of the consolidated financial statements. Unrealized losses are also eliminated, unless the transaction is an impairment indicator of the asset transferred. The accounting policies of subsidiaries have been changed where necessary to ensure consistency with the accounting policies adopted by the Group.
Page 20
20 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Basis of preparation of the interim condensed consolidated financial statements These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard No. 34 Interim Financial Reporting endorsed by the EU (“IAS 34”). The interim condensed consolidated financial statements do not comprise all the information and disclosures which are require d in annual financial statements and should be read jointly with the consolidated financial statements of the Group for the year ended 31 December 2024 approved for publication on 24 March 2025. Going concern assumption These interim condensed consolidated financial statements have been prepared on the basis of the assumption that the Group and the Parent Company will continue in operation as a going concern in the foreseeable future, i.e. in the period of at leas t 12 months after the balance sheet date. As at the date of signing these consolidated financial statements, the Management Board of the Parent Company did not identify any facts or circumstances which indicated any threats to the Group continuing in operation as a going concern for a period o f 12 months after the end of the reporting period as a result of intended or forced discontinuation or significant curtailment of its operations to date. By the date of preparing the consolidated financial statements for the period from 1 January to 31 March 2025, the Management Board of the Parent Company did not become aware of any events which should have been but were not recognized in the accounting records for the reporting period. At the same time, no significant prior year events have been disclosed in these consolidated financial statements. Compliance with the International Financial Reporting Standards These interim condensed consolidated financial statements have been prepared in accordance with International Accounting Standard No. 34 Interim Financial Reporting and in accordance with the relevant International Financial Reporting Standards (IFRS) applicable to interim financial reporting, approved by the International Accounting Standards Board (IASB) and the Internatio nal Financial Reporting Interpretations Committee (IFRIC) as applicable as at 31 March 2025. The Group intends to apply changes to IFRS published but not yet binding by the date of publication of these interim condense d consolidated financial statements in accordance with their effective dates. Information on standards and interpretations adopted for the first time, early adoption of the standards, standards effective on or after 1 January 2025 and the estimation of the impact of changes in IFRS on the future consolidated financial statements of the Group has been presented in the second part of the Consolidated Financial Statements for 2024. Amendments to standards or interpretations effective from 1 January 2025 applicable and adopted by the Group Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates - Lack of Exchangeability- applicable to reporting periods beginning on or after 1 January 2025. The amendments do not have a material impact on the accounting policies adopted by the Group with regard to the Group’s operations or its financial results.
Page 21
21 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Standards and interpretations adopted by the IASB but not yet endorsed by the EU When approving these financial statements, the Group did not apply the following standards, amendments and interpretations which have not yet been endorsed by the EU: IFRS 18 Presentation and Disclosure in Financial Statements - applicable to reporting periods beginning on or after 1 January 2027; IFRS 19 Subsidiaries without Public Accountability: Disclosures - applicable to reporting periods beginning on or after 1 January 2027; Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10, IAS 7 as part of Annual Improvements Volume 11 - applicable to reporting periods beginning on or after 1 January 2026; Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – amendments to classification and measurement - applicable to reporting periods beginning on or after 1 January 2026; Contracts Referencing Nature -dependent Electricity – Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures – applicable to reporting periods beginning on or after 1 January 2026. The Group is analysing the estimated impact of the standards and amendments listed above on the Group’s financial statements. Functional currency and presentation currency Functional currency and presentation currency The functional currency of the Group and the Parent Company and the reporting currency of these financial statements is the Polish zloty (PLN). Unless stated otherwise, all data is presented in thousands of Polish zlotys (PLN ‘000). Transactions and balances Transactions expressed in foreign currencies are translated into the functional currency based on the exchange rate as at the transaction date. Foreign exchange gains and losses on the settlement of these transactions and the translation of monetary assets and liabilities as at the balance sheet date are recognized in the income statement, unless they are deferred in equity, when they qualify for recognition as cash flow hedges and hedges of a net investment. Assumption of comparability of the financial statements and consistency of accounting policies The accounting policies applied in these interim consolidated financial statements, material judgments made by the Management Board with regard to the accounting policies applied by the Group and the main sources of estimating uncertainties are consistent, in all material respects, with the policy adopted for preparing the annual consolidated financial statements of the CD PROJEK T Group for 2024, with the exception of the presentation changes described below. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended 31 December 2024.
Page 22
22 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Presentation changes In these interim condensed consolidated financial statements for the period from 1 January to 31 March 2025 , changes were introduced in the presentation of selected financial data. In order to ensure comparability of the financial data in the reporting period, the presentation of the data as at 31 December 2024 was changed. The data is presented after the following adjustment: In the statement of financial position as at 31 December 2024, the presentation of some of the buildings and structures held by the Group changed. Consequently, the following items changed: - Property, plant and equipment – a decrease of PLN 65 thousand; - Investment properties – an increase of PLN 65 thousand. Audit by the registered auditor These interim condensed consolidated financial statements, including the selected elements of the interim condensed separate financial statements, were not audited or reviewed by an independent registered auditor.
Page 23
Notes – operating segments of the CD PROJEKT Group 3
Page 24
24 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Operating segments Presentation of the financial statements taking into account operating segments The scope of the financial information provided on the Group's operating segments is consistent with the requirements of IFRS 8. The segments’ results are determined based on their net profits. Description of differences in the basis for determination of segments and the profit or loss of a segment compared with the last annual consolidated financial statements The Group did not make any changes in the determination of segments or in the measurement of the profits or losses of the individual segments in relation to the financial statements for the year ended 31 December 2024. There are no differences between the measurement of the assets, liabilities, profits and losses of the Group’s reporting segments.
Page 25
25 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Information on individual operating segments Continuing operations Consolidation eliminations Total continuing operations CD PROJEKT RED GOG.COM 01.01.2025 – 31.03.2025 Sales revenue 181 101 48 682 (3 478) 226 305 from external customers 177 650 48 655 - 226 305 between segments 3 451 27 (3 478) - Amortization and depreciation 2 524 622 (178) 2 968 Interest income 18 183 437 - 18 620 Interest expense 164 19 (18) 165 Net profit/(loss) of the segment 85 423 409 171 86 003 Continuing operations Consolidation eliminations Total continuing operations CD PROJEKT RED GOG.COM 01.01.2024 – 31.03.2024 Sales revenue 187 238 44 234 (4 687) 226 785 from external customers 182 551 44 234 - 226 785 between segments 4 687 - (4 687) - Amortization and depreciation 3 358 412 (184) 3 586 Interest income 16 044 342 - 16 386 Interest expense 221 226 (33) 414 Net profit/(loss) of the segment 99 938 38 86 100 062
Page 26
26 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Sales revenue – geographical structure* Continuing operations Consolidation eliminations Total continuing operations CD PROJEKT RED GOG.COM in PLN in % 01.01.2025 – 31.03.2025 Domestic sales 8 512 3 815 (3 478) 8 849 3.9% Export sales, including: 172 589 44 867 - 217 456 96.1% Europe 21 852 19 845 - 41 697 18.4% North America 143 831 19 975 - 163 806 72.4% South America - 1 318 - 1 318 0.6% Asia 6 526 2 064 - 8 590 3.8% Australia 380 1 519 - 1 899 0.8% Africa - 146 - 146 0.1% Total 181 101 48 682 (3 478) 226 305 100% Continuing operations Consolidation eliminations Total continuing operations CD PROJEKT RED GOG.COM in PLN in % 01.01.2024 – 31.03.2024 Domestic sales 8 722 3 715 (4 687) 7 750 3.4% Export sales, including: 178 516 40 519 - 219 035 96.6% Europe 24 033 19 260 - 43 293 19.1% North America 143 124 16 960 - 160 084 70.6% South America - 1 042 - 1 042 0.5% Asia 10 732 1 605 - 12 337 5.4% Australia 627 1 529 - 2 156 0.9% Africa - 123 - 123 0.1% Total 187 238 44 234 (4 687) 226 785 100% * The data presented relates to the place of residence of the customers of the Group companies: for CD PROJEKT S.A. and CD PROJEKT RED Inc. - distributors and contractors, and for retail sales conducted by GOG sp. z o.o. - end users.
Page 27
27 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Sales revenue – by type of production Continuing operations Consolidation eliminations Total continuing operations CD PROJEKT RED GOG.COM 01.01.2025 – 31.03.2025 Own production 178 069 - 1 763 179 832 Third party production 2 022 48 262 (5 180) 45 104 Other revenue 1 010 420 (61) 1 369 Total 181 101 48 682 (3 478) 226 305 Continuing operations Consolidation eliminations Total continuing operations CD PROJEKT RED GOG.COM 01.01.2024 – 31.03.2024 Own production 183 766 - 1 825 185 591 Third party production 2 897 44 132 (6 463) 40 566 Other revenue 575 102 (49) 628 Total 187 238 44 234 (4 687) 226 785
Page 28
28 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Sales revenue – by distribution channel Continuing operations Consolidation eliminations Total continuing operations CD PROJEKT RED GOG.COM 01.01.2025 – 31.03.2025 Games - box issues 6 794 - - 6 794 Games - digital issues 168 507 48 262 (3 206) 213 563 Other revenue 5 800 420 (272) 5 948 Total 181 101 48 682 (3 478) 226 305 Continuing operations Consolidation eliminations Total continuing operations CD PROJEKT RED GOG.COM 01.01.2024 – 31.03.2024 Games - box issues 10 820 - - 10 820 Games - digital issues 166 363 44 132 (4 638) 205 857 Other revenue 10 055 102 (49) 10 108 Total 187 238 44 234 (4 687) 226 785
Page 29
29 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Consolidated income statement by segment for the period from 01.01.2025 to 31.03.2025 CD PROJEKT RED GOG.COM Consolidation eliminations Total Sales revenue 181 101 48 682 (3 478) 226 305 Sales of products 178 069 - 1 763 179 832 Sales of services 1 010 420 (61) 1 369 Sales of goods for resale and materials 2 022 48 262 (5 180) 45 104 Cost of sales of products, services, goods for resale and materials 15 046 35 026 (3 609) 46 463 Costs of products and services sold 12 269 26 (14) 12 281 Cost of goods for resale and materials sold 2 777 35 000 (3 595) 34 182 Gross profit/(loss) on sales 166 055 13 656 131 179 842 Selling expenses 22 051 9 650 (31) 31 670 Total administrative expenses, including: 49 930 3 127 (29) 53 028 cost of research projects 8 186 - - 8 186 Other operating income 2 123 91 (277) 1 937 Other operating expenses 1 619 152 (277) 1 494 (Impairment)/reversal of impairment of financial instruments 7 - - 7 Operating profit/(loss) 94 585 818 191 95 594 Finance income 39 104 849 - 39 953 Finance costs 21 150 1 104 (18) 22 236 Profit/(loss) before tax 112 539 563 209 113 311 Income tax 27 116 154 38 27 308 Net profit/(loss) 85 423 409 171 86 003 Net profit/(loss) attributable to owners of CD PROJEKT S.A. 85 423 409 171 86 003
Page 30
30 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Consolidated income statement by segment for the period from 01.01.2024 to 31.03.2024 CD PROJEKT RED GOG.COM Consolidation eliminations Total Sales revenue 187 238 44 234 (4 687) 226 785 Sales of products 183 766 - 1 825 185 591 Sales of services 575 102 (49) 628 Sales of goods for resale and materials 2 897 44 132 (6 463) 40 566 Cost of sales of products, services, goods for resale and materials 34 644 32 188 (4 779) 62 053 Costs of products and services sold 31 771 - (140) 31 631 Cost of goods for resale and materials sold 2 873 32 188 (4 639) 30 422 Gross profit/(loss) on sales 152 594 12 046 92 164 732 Selling expenses 21 487 9 788 (46) 31 229 Total administrative expenses, including: 52 183 2 167 9 54 359 costs of research projects 20 643 - - 20 643 Other operating income 3 712 170 (358) 3 524 Other operating expenses 1 492 160 (281) 1 371 (Impairment)/reversal of impairment of financial instruments (1) - - (1) Operating profit/(loss) 81 143 101 52 81 296 Finance income 18 273 1 834 - 20 107 Finance costs 2 428 1 818 (33) 4 213 Profit/(loss) before tax 96 988 117 85 97 190 Income tax (2 950) 79 (1) (2 872) Net profit/(loss) 99 938 38 86 100 062 Net profit/(loss) attributable to owners of CD PROJEKT S.A. 99 938 38 86 100 062
Page 31
31 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Consolidated statement of financial position by segment as at 31.03.2025 CD PROJEKT RED GOG.COM Consolidation eliminations Total NON-CURRENT ASSETS 1 716 117 30 551 (16 795) 1 729 873 Property, plant and equipment 283 778 1 647 (738) 284 687 Intangible assets 65 085 3 794 (307) 68 572 Expenditure on development projects 782 319 2 633 247 785 199 Investment properties 31 319 - - 31 319 Goodwill 56 438 - - 56 438 Investments in subordinated entities 15 969 - (15 969) - Shares in non-consolidated subordinated entities 40 598 - - 40 598 Prepayments and deferred costs 3 300 20 005 - 23 305 Other financial assets 329 876 - - 329 876 Deferred tax assets 107 030 2 472 (28) 109 474 Other receivables 405 - - 405 CURRENT ASSETS 1 326 364 66 407 (3 513) 1 389 258 Inventories 660 - - 660 Trade receivables 85 454 5 662 (3 513) 87 603 Current income tax receivable 36 - - 36 Other receivables 100 904 54 - 100 958 Prepayments and deferred costs 11 072 14 134 - 25 206 Other financial assets 470 164 3 - 470 167 Bank deposits over 3 months 487 346 - - 487 346 Cash and cash equivalents 170 728 46 554 - 217 282 TOTAL ASSETS 3 042 481 96 958 (20 308) 3 119 131
Page 32
32 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. CD PROJEKT RED GOG.COM Consolidation eliminations Total EQUITY 2 857 261 51 106 (15 789) 2 892 578 Equity of the shareholders of CD PROJEKT S.A. 2 857 261 51 106 (15 789) 2 892 578 Share capital 99 911 136 (136) 99 911 Supplementary capital 2 026 045 48 503 (5 514) 2 069 034 Share premium 116 700 - - 116 700 Other reserves 58 812 1 268 (2 280) 57 800 Foreign exchange differences on translation (3 395) (65) 1 016 (2 444) Retained earnings / (Accumulated losses) 473 765 855 (9 046) 465 574 Net profit (loss) for the period 85 423 409 171 86 003 Non-controlling interests - - - - NON-CURRENT LIABILITIES 22 313 161 (126) 22 348 Other financial liabilities 17 243 126 (126) 17 243 Other liabilities 2 212 - - 2 212 Deferred tax provisions 151 - - 151 Deferred income 1 880 - - 1 880 Provision for retirement and similar benefits 827 35 - 862 CURRENT LIABILITIES 162 909 45 694 (4 398) 204 205 Other financial liabilities 4 689 750 (726) 4 713 Trade payables 20 197 32 771 (3 636) 49 332 Current income tax liabilities 1 765 258 - 2 023 Other liabilities 5 976 3 500 - 9 476 Deferred income 10 769 6 457 - 17 226 Provision for pensions and similar benefits 11 421 477 - 11 898 Other provisions 108 092 1 481 (36) 109 537 TOTAL EQUITY AND LIABILITIES 3 042 483 96 961 (20 313) 3 119 131
Page 33
33 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Consolidated statement of financial position by segment as at 31.12.2024* CD PROJEKT RED GOG.COM Consolidation eliminations Total NON-CURRENT ASSETS 1 559 482 31 452 (16 770) 1 574 164 Property, plant and equipment 262 030 1 772 (889) 262 913 Intangible assets 65 756 3 877 (328) 69 305 Expenditure on development projects 692 281 2 895 245 695 421 Investment properties 31 670 - - 31 670 Goodwill 56 438 - - 56 438 Investments in subordinated entities 15 798 - (15 798) - Shares in non-consolidated subordinated entities 39 453 - - 39 453 Prepayments and deferred costs 3 771 20 660 - 24 431 Other financial assets 292 137 - - 292 137 Deferred tax assets 99 741 2 248 - 101 989 Other receivables 407 - - 407 CURRENT ASSETS 1 396 146 77 519 (5 405) 1 468 260 Inventories 1 802 - - 1 802 Trade receivables 167 754 5 279 (5 405) 167 628 Current income tax receivable 15 211 - - 15 211 Other receivables 69 355 366 - 69 721 Prepayments and deferred costs 10 830 15 038 - 25 868 Other financial assets 540 486 134 - 540 620 Bank deposits over 3 months 522 524 - - 522 524 Cash and cash equivalents 68 184 56 702 - 124 886 TOTAL ASSETS 2 955 628 108 971 (22 175) 3 042 424 * restated data
Page 34
34 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. CD PROJEKT RED GOG.COM Consolidation eliminations Total EQUITY 2 765 931 50 526 (15 790) 2 800 667 Equity of the shareholders of CD PROJEKT S.A. 2 765 931 50 526 (15 790) 2 800 667 Share capital 99 911 136 (136) 99 911 Supplementary capital 2 026 045 48 503 (5 514) 2 069 034 Share premium 116 700 - - 116 700 Other reserves 50 030 1 097 (2 110) 49 017 Foreign exchange differences on translation (520) (65) 1 016 431 Retained earnings / (Accumulated losses) 5 153 (279) (9 174) (4 300) Net profit (loss) for the period 468 612 1 134 128 469 874 Non-controlling interests - - - - NON-CURRENT LIABILITIES 22 541 335 (302) 22 574 Other financial liabilities 17 708 300 (302) 17 706 Other liabilities 2 274 - - 2 274 Deferred tax provisions 67 - - 67 Deferred income 1 665 - - 1 665 Provision for retirement and similar benefits 827 35 - 862 CURRENT LIABILITIES 167 156 58 110 (6 083) 219 183 Other financial liabilities 12 370 716 (678) 12 408 Trade payables 41 104 38 902 (5 273) 74 733 Current income tax liabilities - 782 - 782 Other liabilities 5 807 7 117 - 12 924 Deferred income 8 738 6 437 - 15 175 Provision for retirement and similar benefits 8 429 311 - 8 740 Other provisions 90 708 3 845 (132) 94 421 TOTAL EQUITY AND LIABILITIES 2 955 628 108 971 (22 175) 3 042 424
Page 35
35 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Consolidated statement of financial position by segment as at 31.03.2024 CD PROJEKT RED GOG.COM Consolidation eliminations Total NON-CURRENT ASSETS 1 443 187 45 485 (16 984) 1 471 688 Property, plant and equipment 199 987 2 573 (1 540) 201 020 Intangible assets 67 438 3 576 (388) 70 626 Expenditure on development projects 552 059 2 970 235 555 264 Investment properties 33 858 - - 33 858 Goodwill 56 438 - - 56 438 Investments in subordinated entities 15 271 - (15 271) - Shares in non-consolidated subordinated entities 38 409 - - 38 409 Prepayments and deferred costs 4 205 34 534 - 38 739 Other financial assets 417 019 - - 417 019 Deferred tax assets 58 123 1 832 (20) 59 935 Other receivables 380 - - 380 CURRENT ASSETS 1 195 486 60 801 (4 756) 1 251 531 Inventories 3 260 - - 3 260 Trade receivables 88 121 4 670 (4 756) 88 035 Current income tax receivable 13 948 - - 13 948 Other receivables 65 140 4 474 - 69 614 Prepayments and deferred costs 12 300 17 606 - 29 906 Other financial assets 426 025 4 - 426 029 Bank deposits over 3 months 496 977 - - 496 977 Cash and cash equivalents 89 715 34 047 - 123 762 TOTAL ASSETS 2 638 673 106 286 (21 740) 2 723 219
Page 36
36 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. CD PROJEKT RED GOG.COM Consolidation eliminations Total EQUITY 2 473 489 48 903 (15 307) 2 507 085 Equity of the shareholders of CD PROJEKT S.A. 2 473 489 48 903 (15 307) 2 507 085 Share capital 99 911 136 (136) 99 911 Supplementary capital 1 681 868 38 251 (5 515) 1 714 604 Share premium 116 700 - - 116 700 Other reserves 27 576 569 (1 582) 26 563 Foreign exchange differences on translation (1 745) (65) 1 014 (796) Retained earnings / (Accumulated losses) 449 241 9 974 (9 174) 450 041 Net profit (loss) for the period 99 938 38 86 100 062 Non-controlling interests - - - - NON-CURRENT LIABILITIES 35 793 1 066 (1 045) 35 814 Other financial liabilities 17 912 1 045 (1 045) 17 912 Other liabilities 2 434 - - 2 434 Deferred income 2 153 - - 2 153 Provision for retirement and similar benefits 497 21 - 518 Other provisions 12 797 - - 12 797 CURRENT LIABILITIES 129 391 56 317 (5 388) 180 320 Other financial liabilities 4 874 662 (632) 4 904 Trade payables 27 679 36 446 (4 680) 59 445 Current income tax liabilities - 240 - 240 Other liabilities 4 903 6 033 - 10 936 Deferred income 6 503 6 375 - 12 878 Provision for retirement and similar benefits 8 308 460 - 8 768 Other provisions 77 124 6 101 (76) 83 149 TOTAL EQUITY AND LIABILITIES 2 638 673 106 286 (21 740) 2 723 219
Page 37
37 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Operating segments In the first quarter of 2025, the Group’s operations were carried out in two business segments: CD PROJEKT RED GOG.COM CD PROJEKT RED The scope and model of operations The operations of the CD PROJEKT RED studio are executed within the structures of CD PROJEKT S.A. (the domestic holding company of the CD PROJEKT Group), CD PROJEKT RED Inc. (USA) and CD PROJEKT RED Canada Ltd. (Canada). These operations consist of creating and publishing video games, selling licences for their distribution, coordinating sales promotions, and of producing, selling, licensing and releasing the accompanying products which use the brands owned - The Witcher and Cyberpunk. The studio is also conducting internal concept work on the third franchise - the original IP with the code name Hadar. As part of the publishing activities, the Parent Company is responsible for the design of the campaigns which promote its own products and independently maintains direct communication with players via electronic media channels and social media and by participating in industry events. Key products Currently, the portfolio of the studio’s main products includes video games which comprise the Witcher trilogy: The Witcher, The Witcher 2: Assassins of Kings, The Witcher 3: Wild Hunt with two expansions: Hearts of Stone and Blood and Wine, and Cyberpunk 2077 with an expansion the Phantom Liberty. GOG.COM The scope and model of operations GOG.COM is currently one of the world’s most popular independent digital distribution platforms for computer games, which is distinguished by offering digital products without security features that make it difficult for users to use the games they h ave purchased (DRM 1), and by activities promoting and protecting the cultural heritage of computer games. The platform is available in English, French, German, Russian, Chinese and Polish, offering customers not only a fully locali zed website or games, but also (with the exception of the Russian and Chinese versions), direct marketing activities in a given language and popular local payment methods (in twelve currencies). On GOG.COM, games are available for Windows PCs, as well as for macOS and Linux operating systems. The operations of the GOG.COM segment consist of digital distribution of the games via own GOG.COM shop and GOG GALAXY application. The platform makes it possible to purchase the game, pay for the game and download it to one’s own computer; in addition, the GOG GALAXY application enables, among other things, automatic updates, saving the game in the cloud, network play, including between platforms. Each purchase also comes with an offline installer which enables users to play without the need for an Internet connection. Key products As at the date of publication of these financial statements, more than 10 700 products from over 1 500 partners are available on GOG.COM. These include both timeless classics and the latest titles from such companies as Activision, Bethesda, CAPCOM, Disney, Electronic Arts, Larian, SEGA or Ubisoft. Through GOG.COM, the Group also sells its own products directly to retail customers, i.e. games from the Witcher universe and Cyberpunk 2077 together with the Phantom Liberty expansion. 1 DRM (Digital Rights Management) - a generic term for technology that controls how and when digital content - games, music, films, books - can be used.
Page 38
38 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Description of the Issuer’s major achievements or failures in the first quarter of 2025 by operating segment CD PROJEKT RED Events relating to Cyberpunk 2077 After the end of the period discussed, on 2 April, during the Nintendo Direct event, it was announced that Cyberpunk 2077: Ultimate Edition joins the ranks of Nintendo Switch 2 launch titles that will debut alongside the new console on 5 June 2025. The full edition of the game, available for the first time in history on the Nintendo console, includes the basic version of the game along wi th the Phantom Liberty expansion and all updates. Cyberpunk 2077: Ultimate Edition for Nintendo Switch 2 has been optimized for all available game modes and offers new ways to play the game. The title takes advantage of exclusive features on the new console from Nintendo — players will be able to perform simple gestures using the touchscreen to comfortably control selected functions in the game, use gyroscope aiming for greater precision, and take advantage of the motion control capabilities of the Joy -Con 2 controllers and use the mouse function. The same day saw the launch of a series of global events organized by Nintendo, where journalists, gamers and representatives of major industry firms had the opportunity to play for the first time on the Nintendo Switch 2 console, including Cyberpunk 2077: Ultimate Edition. The events took place in Paris, London, New York, Los Angeles and Tokyo, among others. Events relating to The Witcher series games On 21 January, CD PROJEKT RED announced venues and dates of concerts as part of the Witcher: Music of the Continent tour. The actual tour was preceded by a special closed -door concert at the National Opera in Warsaw on 12 May. The event organized to celebrate the tenth anniversary of the release of the game The Witcher 3: Wild Hunt was attended by CD PROJEKT RED employees and invited representatives of the studio’s partners, the media and the Witcher community. Jubilee concerts will also take pl ace, among others, in Boston (31 May) and Poznań during the Pyrkon event (15 June). The official launch of the world tour will take place during gamescom 2025 in Cologne (20 August). In total, more than 20 concerts in Europe and North America have so far been announced as part of The Witcher: Music of the Continent tour. On 25 March, during the conference summarising the results of the CD PROJEKT Group in 2024, the Company communicated that the opening game of the new Witcher trilogy, The Witcher 4, will be released after 2026. On 13 May, the cartoon world of The Witcher expanded with a new entry. The Little Witcher is a series of cheerful stories created by those responsible for the video game series from CD PROJEKT RED. The cartoon tells about the adventures of Geralt and little Ciri during their time together in Kaer Morhen. On 19 May, The Witcher 3: Wild Hunt celebrated its 10th birthday. To mark the occasion, CD PROJEKT RED announced that players can look forward to a series of events, special partnerships and surprises. The studio also announced that a new update for The Witcher 3: Wild Hunt will be released later this year, in which, thanks to a partnership with mod.io, mods popular with gamers will also be available on new generation consoles. For a limited time, the studio’s products were available as a special offer on digital game distribution platforms. Other On 25 March, during the conference summarizing the results of the CD PROJEKT Group in 2024, the Company announced that it has entered into a strategic partnership with Scopely in order to create a game based on one of the Company’s franchises. During the conference, it was also reported that one of CD PROJEKT RED studio’s unannounced projects i s being developed in collaboration with Fool’s Theory. After the end of the period discussed, on 16 April ticket sales began for Art For All by Promised Land Art Festival - an event organized by the CD PROJEKT RED studio and EC1 Łódź and addressed to people dreaming of working in the creative industry, and to the enthusiasts of video games, films and cartoons. The event will take place on 7 and 8 June 2025.
Page 39
39 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. GOG.COM Digital distribution of games In the first quarter of 2025, the GOG.COM catalogue was expanded to include, among other things, Dino Crisis 1 and 2 , Kingdom Come: Deliverance II, Tomb Raider IV-VI Remastered, Neverwinter Nights: Doom of Icewind Dale, and LEGO City Undercover. Sales promotion Sales promotion in the digital distribution of games mainly consists of adding new items of interest to users to the catalogu e and running seasonal promotional campaigns. During the period in question, GOG.COM hosted weekly themed promotions - such as the Winter Classics Promo, Sci -Fi Promo, Story Rich Promo, and Role-Playing Games Promo - along with dedicated sales from individual publishers such as Disney. Weekly promotional campaigns were also accompanied by longer seasonal in-store events: New Year Sale, Love at First Pixel and Spring Sale. In the first quarter of 2025, GOG continued its partnership with a Japanese publisher Capcom by bringing back the fan-loved horror classic, Dino Crisis, for digital sale on PC. Alongside the launch, a new tool: GOG Dreamlist, available on the shop's website, was also released. The GOG Dreamlist is an iteration of the ‘fan wishlist’ previously available on the GOG forums. With the new and improved version, users can not only vote for the games they would like to see on the platform, but also add their own favourites, easily share them on social media, and share their memories of the title. GOG Dreamlist also provides the ability to interact with other users' memories, as well as informing when a game the user has voted for is released on GOG. During the discussed period, GOG also developed the GOG Preservation Program project. Along with the Dino Crisis games, a series of LEGO titles have joined the Programme, as well as more than 20 selected classics, such as Vampire: The Masquerade - Redemption, games in the Tomb Raider series, Alone in the Dark , Ultima, Wing Commander, F.E.A.R., Jagged Alliance 2 , and many more. Also joining the Programme is a horror legend, Silent Hill 4: The Room - in working on this title, GOG not only improved compatibility for modern systems, but also brought back scenes previously unavailable to PC users, thus offering the most complete version of the game on the PC market. In total, 39 updated titles were added to the Program in the first quarter of 2025. In the coming months, GOG plans to further develop the GOG Preservation Program, with monthly updates. Other corporate events On 8 January 2025, during a meeting of the Company’s Supervisory Board: Mr. Adam Kiciński and Mr. Marcin Iwiński were both elected to perform the role of Chair of the Supervisory Board of the new term, in consequence of which each of them will have a title of Co-Chair of the Supervisory Board; Mr. David Gardner was elected to perform the role of the Deputy Chair of the Supervisory Board of the new term; the Audit Committee of the new term was elected with the following composition: Ms. Agnieszka Słomka -Gołębiowska, Ms. Beata Cichocka- Tylman, Mr. Adam Kiciński, with Ms. Agnieszka Słomka -Gołębiowska acting as Chair of the Audit Committee. On 15 January 2025, the Management Board passed a resolution on adopting the Dividend Policy of CD PROJEKT S.A. which will apply to the dividend for the financial year 2025 and subsequent years. For more information on the adopted Policy , see the Company’s website under Dividend. On 21 March, the share capital of CD PROJEKT RED Inc. was increased by USD 708 thousand to USD 8 628 thousand. The increased value of the existing shares was paid up in full by a cash contribution made by the Parent Company. The purpose of the capital increase was to enable the payment of the first tranche of the price for the total of 100 000 shares in The Molasses Flood LLC, the ownership of which, pursuant to the agreements concluded with its minority shareholders on 12 and 18 March 2025, was passed on to CD PROJEKT RED Inc. on 31 March 2025. As a result, CD PROJEKT RED Inc. became the owner of 100% (i.e. 550 000) of the shares in that company. By decision of the Board of Directors of CD PROJEKT RED Inc. , a merger of The Molasses Flood LLC, as the acquired company, and its sole shareholder, CD PROJEKT RED Inc., as the acquiring company, was subsequently carried out. The aim of the merger was to further integrate the team and the work conducted by The Molasses Flood LLC with the development structure and processes operating within the CD PROJEKT RED studio, and to simplify the structure of the Group. On 1 April 2025, The Molasses Flood LLC (the acquired company) was merged with CD PROJEKT RED Inc. (the acquiring company).
Page 40
40 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Factors affecting the Group’s future performance CD PROJEKT RED Key factors important for the results and development of the CD PROJEKT RED segment were as follows: hiring and developing a team of top specialists, experts and executives; effective implementation of the production plan - parallel development of top-quality AAA games and accompanying products that meet the needs and expectations of gamers, using modern production tools and practices; technological development - creation and use of innovative solutions (also the area of AI), further refinement and adaptation of Unreal Engine technology as part of the strategic cooperation with Epic Games; nurturing the reputation of the studio and the products it releases through effective communication with gamers and other stakeholders; further development of the global electronic entertainment market, including, in particular, the video games segment; ensuring adequate funding for operations; stability of the legal environment, including, in particular, intellectual property rights legislation. GOG.COM Key factors important for the results and development of the GOG.COM segment were as follows: hiring and developing a team of top specialists, experts and executives; further growth of the popularity of computer games; growth of the platform’s user base, supporting development and active involvement of the emerging community; expanding the games catalogue and developing the service’s functionality; integration of cloud-gaming technology. Moreover, the operations of the CD PROJEKT Group companies are affected by external factors such as macroeconomic developments, changes in legal or tax regulations, similarly to other entities doing business on the local or international markets. Seasonality or cyclicality of the Group’s operations CD PROJEKT RED Segment revenues and results are strongly affected by the new titles’ release schedule. CD PROJEKT RED usually takes 3 to 6 years to produce a game. Historically, the studio focused on the development of one major production, with conceptual work on the next game starting even before the production and market release of the previous game was completed. CD PROJEKT RED also engages in smaller-scale projects – such as add-ons for its own games or adapting the existing products to work on new gaming platforms. Such projects may be carried out directly by the Company or by its external partners. Currently, several productions are being developed in parallel in the CD PROJEKT Group (also in cooperation wi th external development teams). With regard to games which have already been released, their yearly sales breakdown is dependent on the schedule of periodic sale campaigns. In most cases, strong sales are reported in the second and fourth quarters, whereas the first and third quarters (the latter of which overlaps with the summer vacation season) see weaker sales. In addition to pure development activities, the Company also actively develops its franchises in other fields, with a view to continually expanding its audience and exploring other types of media and products.
Page 41
41 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Chart 1 Release quarters of the CD PROJEKT RED segment – sales of products, goods for resale and materials in 2011-2025 (in PLN thousands) GOG.COM The digital videogame distribution market on which GOG.COM operates is characterized by seasonal fluctuations in revenues. On an annual basis, the highest revenues are typically obtained in the second and fourth quarters, whereas the lowest revenues in the first and third quarter s. Sales in the second and fourth quarters are temporarily boosted by promotional campaigns typical ly organized in these quarters. The sales volume may also be strongly affected by the list of new products introduced in a given reporting period. Chart 2 Quarterly distribution of sales of goods for resale and materials of the GOG.COM segment in 2018-2025 (in PLN thousand) 0 200 000 400 000 600 000 800 000 1 000 000 1 200 000 1 400 000 1 600 000 0 40 000 80 000 120 000 160 000 200 000 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 2023 2024 2025
Page 42
42 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Key customers The CD PROJEKT Group cooperates with external customers whose share in the consolidated revenues of the Group exceeds 10%. Within the CD PROJEKT RED segment, the commercial activities carried out by CD PROJEKT S.A. in cooperation with two customers generated cumulative sales exceeding 10% of the CD PROJEKT Group’s total consolidated sales revenue by the en d of the first quarter of 2025: customer 1: PLN 92 075 thousand, which accounted for 41% of the Group’s total consolidated sales revenue; customer 2: PLN 45 759 thousand, which accounted for 20% of the Group’s total consolidated sales revenue. The customers referred to above are not related to CD PROJEKT S.A. or its subsidiaries. In the GOG.COM segment, no single external customer exceeded the threshold of 10% of the Group’s consolidated revenue.
Page 43
Notes – other explanatory notes to the interim condensed consolidated financial statements 4
Page 44
44 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 1. Description of those items affecting assets, liabilities, equity, net profit or loss and cash flows which are not typical in terms of their type, size and impact During the reporting period, the Parent Company made adjustments relating to its estimate of income tax for previous years totalling PLN 21 847 thousand resulting primarily from adjustments to the accounting treatment of withholding tax (which were conside red unusual). Due to the low materiality in relation to the results of the adjusted periods, the Company decided to recognize the adjustments to tax estimates on an ongoing basis, without adjusting the periods retrospectively. The materiality analysis carried out showed an insignificant (approximately 3%) distortion of the net profit for the period from 1 January to 31 December 2024, an (approximately 2%) distortion of the net profit for the period from 1 January to 31 December 2023 and an insignificant (approximately 0.9%) distortion of capital as at 31 December 2024.
Page 45
45 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 2. Property, plant and equipment Changes in property, plant and equipment (by category) for the period 01.01.2025 – 31.03.2025 Land Buildings and structures Civil and hydraulic engineering facilities Plant and machinery Vehicles Other fixed assets Assets under construction Total Gross carrying amount as at 01.01.2025 41 859 108 485 3 837 97 193 3 798 7 972 115 420 378 564 Increase due to: - 436 132 5 057 - 9 24 377 30 011 purchase - - - 3 556 - - 24 377 27 933 lease contracts concluded - 61 - - - - - 61 transfer from assets under construction - 375 132 1 501 - 9 - 2 017 Decrease due to: - 157 13 832 635 15 2 124 3 776 sale - - 13 686 - 15 - 714 scrapping - - - 17 - - - 17 transfer from assets under construction - - - - - - 2 017 2 017 lease contracts terminated - - - - 597 - - 597 transfer from investment properties - - - 49 - - - 49 other - 157 - 80 38 - 107 382 Gross carrying amount as at 31.03.2025 41 859 108 764 3 956 101 418 3 163 7 966 137 673 404 799 Accumulated depreciation as at 01.01.2025* 2 987 36 778 781 64 331 1 931 5 034 - 111 842 Increase due to: 146 1 912 52 2 966 148 172 - 5 396 depreciation charge 146 1 912 52 2 966 145 172 - 5 393 other - - - - 3 - - 3 Decrease due to: - 60 10 731 119 15 - 935 sale - - 10 684 - 15 - 709 scrapping - - - 17 - - - 17 lease contracts terminated - - - - 119 - - 119 transfer from investment properties - - - 13 - - - 13 other - 60 - 17 - - - 77 Accumulated depreciation as at 31.03.2025 3 133 38 630 823 66 566 1 960 5 191 - 116 303 Write-downs as at 01.01.2025* 116 3 446 247 - - - - 3 809 Increase - - - - - - - - Decrease - - - - - - - - Write-downs as at 31.03.2025 116 3 446 247 - - - - 3 809 Net carrying amount as at 01.01.2025* 38 756 68 261 2 809 32 862 1 867 2 938 115 420 262 913 Net carrying amount as at 31.03.2025 38 610 66 688 2 886 34 852 1 203 2 775 137 673 284 687 * restated data
Page 46
46 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Amounts of contractual commitments to purchase property, plant and equipment in the future 31.03.2025 31.12.2024 31.03.2024 Construction of an office building on the CD PROJEKT campus 16 441 24 518 66 940 Leasing of passenger cars 120 120 397 Leasing of buildings - 247 - Total 16 561 24 885 67 337 Right-of-use assets relating to property, plant and equipment 31.03.2025 Gross amount Accumulated depreciation Net amount Land 15 964 1 170 14 794 Real properties 12 975 9 946 3 029 Plant and machinery 48 47 1 Vehicles 845 359 486 Total 29 832 11 522 18 310 31.12.2024 Gross amount Accumulated depreciation Net amount Land 15 964 1 114 14 850 Real properties 13 057 9 377 3 680 Plant and machinery 48 44 4 Vehicles 2 148 724 1 424 Total 31 217 11 259 19 958 31.03.2024 Gross amount Accumulated depreciation Net amount Land 15 964 947 15 017 Real properties 13 004 7 255 5 749 Plant and machinery 48 32 16 Vehicles 2 142 350 1 792 Total 31 158 8 584 22 574
Page 47
47 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 3. Intangible assets and expenditure on development projects Changes in intangible assets and expenditure on development projects for the period 01.01.2025 – 31.03.2025 Expenditure on development projects in progress Expenditure on completed development projects Trademarks Patents and licenses Copyrights Computer software Goodwill Intangible assets under construction Total Gross carrying amount as at 01.01.2025 498 175 1 205 724 33 222 7 023 18 728 54 640 56 438 247 1 874 197 Increase due to: 103 814 - - 336 - 78 - 25 104 253 purchase - - - 336 - 78 - 25 439 assets internally generated 103 814 - - - - - - - 103 814 Decrease due to: - - - - - 19 - - 19 other - - - - - 19 - - 19 Gross carrying amount as at 31.03.2025 601 989 1 205 724 33 222 7 359 18 728 54 699 56 438 272 1 978 431 Accumulated amortization as at 01.01.2025 - 994 702 - 6 144 1 146 37 265 - - 1 039 257 Increase due to: - 14 036 - 218 75 862 - - 15 191 amortization charge - 14 036 - 218 75 862 - - 15 191 Decrease due to: - - - - - 2 - - 2 other - - - - - 2 - - 2 Accumulated amortization as at 31.03.2025 - 1 008 738 - 6 362 1 221 38 125 - - 1 054 446 Write-downs as at 01.01.2025 - 13 776 - - - - - - 13 776 Increase - - - - - - - - - Decrease - - - - - - - - - Write-downs as at 31.03.2025 - 13 776 - - - - - - 13 776 Net carrying amount as at 01.01.2025 498 175 197 246 33 222 879 17 582 17 375 56 438 247 821 164 Net carrying amount as at 31.03.2025 601 989 183 210 33 222 997 17 507 16 574 56 438 272 910 209 Amounts of contractual commitments to purchase intangible assets in the future None.
Page 48
48 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 4. Goodwill During the period from 1 January to 31 March 2025, there were no changes in goodwill. Note 5. Investment properties The Parent Company owns a real estate complex located at ul. Jagiellońska 74 and 76 in Warsaw. Given that part of the properties owned is leased out to third parties, including CD PROJEKT Group companies, the Group decided to partly classify these properties as investment properties. The remaining part of the properties is used for the own needs of the activities conducted. The Group measures the properties purchased at cost less accumulated depreciation. The last appraisal report by an expert surveyor, for the buildings and structures recognized partly as property, plant and equipment and partly as investment properties, was prepared on the basis of unit prices for the construction of buildings with the most similar parameters included in the Bistyp Catalogue of Unit Prices for Works and Investment Facilities 2024. The value resulting from the last appraisal of individual assets performed as at 31 December 2024 amounted to PLN 16 310 thousand for the investment properties at ul. Jagiellońska 74. A write-down of PLN 805 thousand was recognized in the Parent Company’s books of account for Building B located on that plot of land and classified as an investment property. For the plot at ul. Jagiellońska 76, the value of the buildings and structures classified as investment properties resulting from the latest appraisal performed as at 31 December 2024 amounted to PLN 14 269 thousand and was higher than the net value recognized in the Parent Company’s books of account. Changes in investment properties for the period 01.01.2025 – 31.03.2025 Gross carrying amount as at 01.01.2025 40 024 Increase due to: 49 reclassification of expenditures from property, plant and equipment after commissioning of the investment property 49 Decrease - Gross carrying amount as at 31.03.2025 40 073 Accumulated depreciation as at 01.01.2025* 7 549 Increase due to: 400 depreciation charge 387 reclassification of expenditures from property, plant and equipment after commissioning of the investment property 13 Decrease - Accumulated depreciation as at 31.03.2025 7 949 Impairment write-downs as at 01.01.2025 805 Increase - Decrease - Impairment write-downs as at 31.03.2025 805 Net carrying amount as at 31.03.2025 31 319 * restated data Amounts of contractual liabilities in respect of purchase of investment properties None.
Page 49
49 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 6. Inventories 31.03.2025 31.12.2024 31.03.2024 Goods for resale 976 2 119 3 745 Other materials 4 3 4 Gross inventories 980 2 122 3 749 Inventory write-downs 320 320 489 Net inventories 660 1 802 3 260 Changes in inventory write-downs None. Note 7. Trade and other receivables 31.03.2025 31.12.2024 31.03.2024 Trade and other receivables, gross 189 076 237 873 158 109 Write-downs 110 117 80 Trade and other receivables, net 188 966 237 756 158 029 from related entities 6 857 2 015 4 508 from other entities 182 109 235 741 153 521 Changes in write-downs of receivables Trade receivables Other receivables Total OTHER ENTITIES Write-downs as at 01.01.2025 117 - 117 Increases - - - Decreases, including: 7 - 7 reversal of write-downs 7 - 7 Write-downs as at 31.03.2025 110 - 110
Page 50
50 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Current and overdue trade receivables as at 31.03.2025 Total Not overdue Overdue, in days 1 – 60 61 – 90 91 – 180 181 – 360 >360 RELATED ENTITIES gross receivables 2 554 2 356 198 - - - - write-down resulting from the ratio 0% 0% 0% 0% 0% 0% write-down determined individually - - - - - - - total expected credit losses - - - - - - - Net receivables 2 554 2 356 198 - - - - Total Not overdue Overdue, in days 1 – 60 61 – 90 91 – 180 181 – 360 >360 OTHER ENTITIES gross receivables 85 159 83 559 1 213 235 42 33 77 write-down resulting from the ratio 0% 0% 0% 0% 0% 0% write-down determined individually 110 - - - - 33 77 total expected credit losses 110 - - - - 33 77 Net receivables 85 049 83 559 1 213 235 42 - - Total gross receivables 87 713 85 915 1 411 235 42 33 77 impairment write- downs 110 - - - - 33 77 Net receivables 87 603 85 915 1 411 235 42 - -
Page 51
51 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Other receivables 31.03.2025 31.12.2024 31.03.2024 Other gross receivables, including: 101 363 70 128 69 994 tax receivables other than corporate income tax 58 036 53 795 57 767 prepayments for inventories 26 154 6 276 8 048 prepayments for development projects 15 580 8 185 3 337 prepayments for property, plant and equipment and intangible assets 887 229 20 security deposits 681 688 652 settlements with employees 24 17 14 settlements with suppliers of property, plant and equipment items - 664 - settlements with payment operators - 253 - settlements with the members of the Management Boards of the Group companies - - 1 other 1 21 155 Write-downs - - - Other net receivables, including: 101 363 70 128 69 994 current 100 958 69 721 69 614 non-current 405 407 380 Note 8. Other financial assets 31.03.2025 31.12.2024 31.03.2024 Loans granted 2 177 2 748 3 249 Bonds 784 450 824 624 825 390 Derivative financial instruments 8 646 405 10 904 Private equity interests in the gaming sector 4 770 4 980 3 505 Other financial assets, including: 800 043 832 757 843 048 current 470 167 540 620 426 029 non-current 329 876 292 137 417 019
Page 52
52 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 9. Prepayments and deferred costs 31.03.2025 31.12.2024 31.03.2024 Minimum guarantees, advance payments, GOG.COM prepayments and other settlements with publishers 33 284 34 890 51 308 Software, licences 8 358 9 615 10 069 Property and personal insurance 1 470 1 370 748 Costs of future marketing services 1 289 1 322 1 422 Fees for pre-emptive rights 1 031 1 058 1 138 Costs of IT security resources 522 407 274 Costs of repairs and maintenance 422 495 726 Business travel (tickets, hotels, insurance) 289 245 187 Fees for perpetual usufruct of land 230 - 231 Domains, servers 40 38 17 Staff relocation costs 37 - 582 Participation in fairs - - 277 Costs in connection with redevelopment of the car park - - 260 Other prepayments and deferred costs 1 539 859 1 406 Prepayments and deferred costs, including: 48 511 50 299 68 645 current 25 206 25 868 29 906 non-current 23 305 24 431 38 739
Page 53
53 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 10. Deferred income tax Deductible temporary differences underlying the deferred tax asset 31.12.2024 Differences affecting the deferred tax recognized in the profit or loss 31.03.2025 Provision for other employee benefits 5 226 1 455 6 681 Provision for costs of performance-related and other remuneration 52 804 8 376 61 180 Tax loss 588 (473) 115 Foreign exchange losses 21 338 19 673 41 011 Difference between the carrying and tax amounts of expenditure on development projects 21 681 (168) 21 513 Salaries and wages and social security payable in future periods 27 13 40 Deferred income in respect of virtual wallet top- ups and fringe benefit scheme 4 591 229 4 820 Other provisions 41 728 1 748 43 476 Research and development relief 508 869 (3 973) 504 896 Tax base of non-current assets leased 18 421 (861) 17 560 Prepayments recognized as revenue for tax purposes 4 194 388 4 582 Difference between the net carrying amounts and tax bases of property, plant and equipment and intangible assets 12 - 12 Measurement of forward contracts - 21 21 Write-off of minimum guarantees 5 993 (65) 5 928 Other - 2 2 Total deductible differences, including: 685 472 26 365 711 837 taxed at 5% 94 011 18 373 112 384 taxed at 19% 590 749 8 473 599 222 deferred tax charged abroad 712 (481) 231 Deferred tax assets 117 118 2 423 119 541
Page 54
54 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Taxable temporary differences underlying the deferred tax provision 31.12.2024* Differences affecting the deferred tax recognized in the profit or loss 31.03.2025 Difference between the net carrying amount and tax amount of property, plant and equipment and intangible assets 17 871 594 18 465 Current period revenue invoiced in the subsequent period/accrued income 163 559 (83 397) 80 162 Foreign exchange gains 1 128 352 1 480 Measurement of forward contracts 96 (96) - Difference between the carrying amounts and tax bases of expenditure on development projects 34 661 7 125 41 786 Carrying amount of non-current assets leased 18 291 (1 373) 16 918 Other 1 077 - 1 077 Total taxable differences, including: 236 683 (76 795) 159 888 taxed at 5% 212 911 (68 685) 144 226 taxed at 19% 22 673 (8 027) 14 646 deferred tax charged abroad 1 099 (83) 1 016 Deferred tax provisions 15 196 (4 978) 10 218 * restated data The deferred part of the income tax for the Polish companies was determined either at the corporate income tax rate of 19% for the tax base corresponding to income from other sources, or at the rate of 5% for the tax base corresponding to income from qualifying intellectual property (the so-called IP BOX), and in the case of the activities conducted in the USA by CD PROJEKT RED Inc., based on the applicable rates of the federal and state taxes. When determining the appropriate tax rate for temporary differences, the Group relied on forecasts of which tax base will give rise to the realization of the temporary differences recognized. Net deferred tax assets/provisions 31.03.2025 31.12.2024 31.03.2024 Deferred tax assets 119 541 117 118 71 480 Deferred tax provisions 10 218 15 196 11 545 Income tax expense recognized in the income statement 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Current income tax, including: 34 709 13 629 adjustments relating to prior years 21 847 - withholding tax paid abroad 4 755 2 476 Change in deferred tax (7 401) (16 501) Income tax expense recognized in the income statement 27 308 (2 872) The high amount of income tax and effective tax rate of 24.1% in the first quarter of 2025 were affected by adjustments relating to previous years totalling PLN 21 847 thousand resulting primarily from adjustments to the accounting treatment of withholding tax (as a result of a mistake in the estimation of income tax, an amount of withholding tax refunded in 2024 of PLN 11 082 thousand for 2022 and PLN 14 710 thousand for 2023 was deducted by mistake).
Page 55
55 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 11. Share capital Share capital – structure as at 31.03.2025 Series Number of shares Value of the series/issue at par Manner of covering share capital A - M 99 910 510 99 910 510 Fully paid up Total 99 910 510 99 910 510 - As at 31 March 2025, the Parent Company’s share capital amounted to PLN 99 910 510 and consisted of 99 910 510 ordinary bearer shares with a par value of PLN 1 each, designated as A – M series shares. The total number of votes resulting from all shares of the Parent Company is 99 910 510. During the reporting period and after the balance sheet date, there were no changes in the amount of the Parent Company’s share capital. Note 12. Provision for retirement and similar benefits 31.03.2025 31.12.2024 31.03.2024 Provision for retirement and disability benefits 875 875 529 Holiday pay provision 11 885 8 727 8 757 Total, including: 12 760 9 602 9 286 current 11 898 8 740 8 768 non-current 862 862 518 Provision for retirement and disability benefits Holiday pay provision Total As at 01.01.2025 875 8 727 9 602 Provisions recognized during the year - 11 885 11 885 Provisions utilized/released - 8 727 8 727 As at 31.03.2025, including: 875 11 885 12 760 current 13 11 885 11 898 non-current 862 - 862 Note 13. Other provisions 31.03.2025 31.12.2024 31.03.2024 Provision for liabilities, including: 109 537 94 421 95 946 provision for costs of performance-related and other remuneration 66 335 57 038 61 844 provision for costs of the audit and review of the financial statements 211 145 59 provision for costs of external services 27 554 17 300 627 provision for other costs 15 437 19 938 33 416 Total, including: 109 537 94 421 95 946 current 109 537 94 421 83 149 non-current - - 12 797
Page 56
56 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Changes in other provisions Provision for costs of performance-related and other remuneration Other provisions Total As at 01.01.2025 57 038 37 383 94 421 Provisions recognized during the year 9 297 24 184 33 481 Provisions utilized/released - 18 365 18 365 As at 31.03.2025, including: 66 335 43 202 109 537 current 66 335 43 202 109 537 non-current - - - Note 14. Other liabilities 31.03.2025 31.12.2024 31.03.2024 Liabilities in respect of taxes, customs duties, social security and other, with the exception of corporate income tax 9 041 12 349 10 171 VAT 2 956 6 366 5 258 Withholding tax 23 57 - Personal income tax 695 2 630 556 Social security contributions 5 174 3 166 4 254 PFRON (State Fund for Rehabilitation of Disabled People) 101 89 82 PIT-8AR (personal income tax) settlements 27 41 7 Other 65 - 14 Other liabilities 2 647 2 849 3 199 Wages and salaries payable 64 - - Liabilities in respect of pre-emptive rights and costs of future marketing services 2 080 2 140 2 320 Other settlements with employees 93 149 174 Other settlements with the members of the Management Board - 11 - Prepayments received from foreign customers 136 173 - Security deposits received 133 134 114 Other liabilities 141 242 591 Total other current liabilities 11 688 15 198 13 370 current 9 476 12 924 10 936 non-current 2 212 2 274 2 434 Current and overdue other liabilities as at 31.03.2025 Total Not overdue Overdue, in days 1 – 60 61 – 90 91 – 180 181 – 360 >360 To related entities - - - - - - - To other entities 9 476 9 202 93 - - - 181 Total 9 476 9 202 93 - - - 181
Page 57
57 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 15. Deferred income 31.03.2025 31.12.2024 31.03.2024 Subsidies 2 355 2 296 2 983 Sales relating to future periods 11 262 9 122 6 865 Virtual wallet (e-wallet, store credit) 5 443 5 374 5 120 Rental of company phones 46 48 63 Deferred income, including: 19 106 16 840 15 031 current 17 226 15 175 12 878 non-current 1 880 1 665 2 153 Note 16. Information on financial instruments Fair values of specific classes of financial instruments The Management Board of the Parent Company analysed specific classes of financial instruments. Based on the analysis, it was concluded that the carrying amounts of the instruments did not differ from their fair values as at both 31 March 2025, 31 December 2024 and 31 March 2024. 31.03.2025 31.12.2024 31.03.2024 LEVEL 1 Assets measured at fair value Financial assets measured at fair value through other comprehensive income 227 254 239 103 226 605 bonds issued by or secured with a guarantee of foreign governments - EUR 21 782 22 106 21 618 bonds issued by or secured with a guarantee of foreign governments - USD 205 472 216 997 204 987 LEVEL 2 Assets measured at fair value through profit or loss Derivatives 8 646 405 10 904 currency forwards - EUR 872 271 1 553 currency forwards - USD 7 774 134 9 351 Private equity interests in the gaming sector 4 770 4 980 3 505 private equity interests in the gaming sector - SEK 966 933 931 private equity interests in the gaming sector - USD 3 804 4 047 2 574 Liabilities measured at fair value through profit or loss Derivatives 205 9 964 393 currency forwards - EUR 24 37 30 currency forwards - USD - 9 620 - currency forwards - JPY 181 307 363 Financial instruments measured at fair value are classified according to a three-level fair value hierarchy: Level 1 – quoted prices in active markets for identical assets or liabilities. Level 2 – fair value based on observable market data. Level 3 – fair value based on market data that is not observable in the market.
Page 58
58 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Financial assets – classification and measurement 31.03.2025 31.12.2024 31.03.2024 Financial assets measured at amortized cost 1 352 009 1 403 714 1 311 188 Other non-current receivables 405 407 380 Trade receivables 87 603 167 628 88 035 Cash and cash equivalents 217 282 124 886 123 762 Bank deposits over 3 months 487 346 522 524 496 977 Treasury bonds and bonds guaranteed by the State Treasury 557 196 585 521 598 785 Loans granted 2 177 2 748 3 249 Financial assets measured at cost 40 598 39 453 38 409 Shares in non-consolidated subordinated entities 40 598 39 453 38 409 Financial assets measured at fair value through other comprehensive income 227 254 239 103 226 605 Bonds issued by foreign governments or secured with their guarantee 227 254 239 103 226 605 Financial assets measured at fair value through profit or loss 13 416 5 385 14 409 Derivative financial instruments 8 646 405 10 904 Private equity interests in the gaming sector 4 770 4 980 3 505 Total financial assets 1 633 277 1 687 655 1 590 611 Financial liabilities – classification and measurement 31.03.2025 31.12.2024 31.03.2024 Financial liabilities measured at amortized cost 71 083 94 883 81 868 Trade payables 49 332 74 733 59 445 Other financial liabilities 21 751 20 150 22 423 Financial liabilities at fair value through profit or loss 205 9 964 393 Derivative financial instruments 205 9 964 393 Total financial liabilities 71 288 104 847 82 261 In accordance with the requirements of IFRS 9 Financial Instruments, the Company has analysed the business model for managing financial assets and examined the characteristics of contractual cash flows for each component of the bond portfolio, and concluded that: the purpose of investments in domestic and foreign Treasury bonds and domestic and foreign bonds guaranteed by the governments is to hold them to maturity and to collect contractual cash flows; investment mandates for managing the foreign Treasury bonds portfolio (bonds issued by or secured with a guarantee of foreign governments) allow bonds to be sold before maturity as part of the adopted strategy; all bonds purchased meet the SPPI test. As a result of the analysis conducted, purchased bonds were classified into two financial asset management models which differ in terms of the entity managing the bond portfolio. Polish Treasury bonds and bonds guaranteed by the Polish State Treasury are measured at amortized cost, because they are held to collect contractual cash flows. Foreign Treasury bonds and foreign bonds guaranteed by governments are measured at fair value through other comprehensive income because of the investment mandate which allows the possibility of the portfolio being managed by an Asset Manager. In accordance with the requirements of IFRS 13 Fair Value Measurement, the Group has analysed the valuation of the financial instruments measured at amortized cost in the consolidated statement of financial position in order to determine their fair v alues and their classification in the fair value hierarchy. Listed debt securities were classified as Level 1. They include State Treasury bonds and bonds guaranteed by the State Treasu ry whose fair value was determined on the basis of a market valuation provided by the brokerage office as part of the applicable agreement for the provision of brokerage services.
Page 59
59 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. 31.03.2025 31.12.2024 31.03.2024 LEVEL 1 Fair value of assets measured at amortized cost 557 815 583 156 596 796 Treasury bonds and bonds guaranteed by the Polish State Treasury 557 815 583 156 596 796 Other items of financial assets and financial liabilities were classified to Level 3. With regard to equity interests in other entities, the Company estimates the fair values of the shares held using the method which consists in forecasting future cash flows generated by a relevant cash generating unit and requires determining a discount rate to be used to calculate the present value of these cash flows. In justified cases, the Group assumes a historical cost as an acceptable approximation of the fair value. The Group did not measure the fair value of trade receivables and payables, cash and cash equivalents, bank deposits over 3 months and loans granted at variable interest rates as their carrying amount is considered by the Group to be a reasonable approximation of fair value. There were no movements between the Levels in the fair value hierarchy in the Group during the reporting period and the comparative period. Note 17. Sales revenue Sales revenue – geographical structure* 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 in PLN in % in PLN in % Domestic sales 8 849 3.9% 7 750 3.4% Export sales, including: 217 456 96.1% 219 035 96.6% Europe 41 697 18.4% 43 293 19.1% North America 163 806 72.4% 160 084 70.6% South America 1 318 0.6% 1 042 0.5% Asia 8 590 3.8% 12 337 5.4% Australia 1 899 0.8% 2 156 0.9% Africa 146 0.1% 123 0.1% Total 226 305 100% 226 785 100% * The data presented relates to the place of residence of the customers of the Group companies: for CD PROJEKT S.A. and CD PROJEKT RED Inc. - distributors and contractors, and for retail sales conducted by GOG sp. z o.o. - end users. Sales revenue – by type of production 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Own production 179 832 185 591 Third party production 45 104 40 566 Other revenue 1 369 628 Total 226 305 226 785 Sales revenue – by distribution channel 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Games - box issues 6 794 10 820 Games - digital issues 213 563 205 857 Other revenue 5 948 10 108 Total 226 305 226 785
Page 60
60 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 18. Operating expenses 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Depreciation and amortization of property, plant and equipment, intangible assets, expenditure on development projects and investment properties, including: 2 968 3 586 depreciation of leased buildings 358 406 depreciation of leased vehicles 49 126 Materials and energy used 985 1 086 External services, including: 28 447 30 412 costs of short-term leases and low-value leases 91 121 Taxes and fees 502 402 Salaries and wages, social insurance and other benefits 49 585 48 668 Business travel 1 744 1 082 Cost of using company cars 48 55 Cost of goods for resale and materials sold 34 182 30 422 Costs of products and services sold 12 281 31 631 Other costs 419 297 Total 131 161 147 641 Selling expenses, including: 31 670 31 229 cost of product maintenance 5 534 5 814 Total administrative expenses, including: 53 028 54 359 cost of research projects 8 186 20 643 Costs of sales 46 463 62 053 Total 131 161 147 641
Page 61
61 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 19. Other operating income and expenses Other operating income 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Tax relief for innovative employees 753 1 355 Rental income 661 501 Income from re-invoicing 255 173 Subsidies 128 231 Other sales 49 15 Release of unused provisions for costs 36 - Gains on disposal of non-current assets 2 6 Reversal of inventory write-downs - 672 Compensations received - 538 Payments from enforcement officers - 2 Other 53 31 Total other operating income 1 937 3 524 Other operating expenses 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Depreciation of investment properties 387 384 Donations and charity 372 52 Costs relating to re-invoicing 255 173 Cost of rental 238 710 Loss on disposal of non-current assets 64 - Cost of sales of other sales 43 1 Irrecoverable receivables 3 2 Cost of destruction of materials and goods for resale 2 5 Provision recorded for a potential tax liability - 41 Other 130 3 Total other operating expenses 1 494 1 371
Page 62
62 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 20. Finance income and finance costs Finance income 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Interest income 18 620 16 386 on current bank deposits 9 136 7 392 on bonds 9 447 8 936 on loans 37 58 Other finance income 21 333 3 721 net foreign exchange gains - 2 229 settlement and measurement of derivative financial instruments 21 333 1 492 Total finance income 39 953 20 107 Finance costs 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Interest expense 165 414 on lease contracts 158 210 on liabilities to the State Treasury 6 204 on trade payables 1 - Other finance costs 22 071 3 799 net foreign exchange losses 21 994 1 592 settlement and measurement of derivative financial instruments - 2 140 commission and fees on purchase of bonds 71 67 measurement of private equity interests in the gaming sector 6 - Total finance costs 22 236 4 213 Net finance income/expense 17 717 15 894
Page 63
63 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 21. Leases of low-value assets and short-term leases The Group concluded lease contracts for office equipment (multifunctional photocopiers, kitchen appliances) and residential premises which potentially meet the recognition criteria for leases under the new IFRS 16. However, the Group considered these contracts to be short -term leases and leases of low -value assets and decided not to apply the requirements for leases to these assets, as permitted by paragraph 5 of the standards. In such cases, lease payments are charged to costs of the period to which they relate, either on a straight-line basis or in some other systematic way that reflects the distribution of costs over the life of the contract (information on the cost of these leases incurred in the period from 1 January to 31 December 2024 is included in Note 2). As at 31 March 2025, 31 December 2024 and 31 March 2024, future payments in respect of irrevocable short-term leases and leases of low-value assets were as follows: 31.03.2025 31.12.2024 31.03.2024 Up to 1 year 251 365 345 From 1 year to 5 years 185 221 181 Total 436 586 526 Note 22. Issuance, redemption and repayment of debt and equity securities Issuance of debt securities Not applicable. Issuance of equity securities Specification 31.03.2025 31.12.2024 31.03.2024 Number of shares in thousands 99 911 99 911 99 911 Par value of shares in PLN 1 1 1 Share capital 99 911 99 911 99 911 Note 23. Dividend paid (or declared) and received During the period from 1 January to 31 March 2025, the Group companies did not pay or receive any dividends. Note 24. Transactions with related entities Terms and conditions of transactions with related entities The terms and conditions of intra -group transactions were determined on the arm’s length basis. The essence of this principle is based on the premise that the terms and conditions agreed in transactions between related parties should not differ from thos e that would be agreed between independent parties in a comparable situation. Controlled transactions concluded by related entities belonging to the CD PROJEKT Group are verified to determine whether the agreed terms of the transactions are similar to the market terms, based on the recommendations and methods provided for in the OECD Guidelines as well as in national legislation.
Page 64
64 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Transactions with related entities after consolidation eliminations Sales to related entities Purchases from related entities 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 SUBSIDIARIES CD PROJEKT RED Canada Ltd. 261 240 4 402 4 288 The Molasses Flood LLC 736 284 10 545 7 682 CD PROJEKT SILVER Inc. - - 183 - MEMBERS OF THE MANAGEMENT BOARDS OF THE GROUP COMPANIES, MEMBERS OF THE SUPERVISORY BOARD AND OTHER RELATED ENTITIES Michał Nowakowski - 1 - - Piotr Karwowski 2 2 - - Maciej Gołębiewski 1 1 - - Karolina Kicińska 173 - - - Maciej Nielubowicz - 1 - - OTHER ENTITIES Other members of management 2 - - -
Page 65
65 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Receivables from related entities Liabilities to related entities 31.03.2025 31.12.2024 31.03.2024 31.03.2025 31.12.2024 31.03.2024 SUBSIDIARIES CD PROJEKT RED Canada Ltd. 2 432 1 596 2 740 3 306 1 758 1 766 The Molasses Flood LLC 6 602 3 167 5 016 7 156 3 278 3 298 MEMBERS OF THE MANAGEMENT BOARDS OF THE GROUP COMPANIES, MEMBERS OF THE SUPERVISORY BOARD AND OTHER RELATED ENTITIES Michał Nowakowski - - 1 3 10 - Adam Badowski - - - 3 1 - Piotr Karwowski - - - 2 - - Paweł Zawodny - - - 2 - - Karolina Kicińska - - - - 173 - OTHER ENTITIES Other members of management 4 - - 24 - -
Page 66
66 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 25. Unpaid loans or defaults on loan agreements in the cases where no corrective measures were adopted by the balance sheet date Not applicable.
Page 67
67 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 26. Changes in contingent liabilities or contingent assets which occurred after the end of the last financial year Contingent liabilities in respect of guarantees, sureties and collateral Specification Currency 31.03.2025 31.12.2024 31.03.2024 mBank S.A. Bill of exchange agreement Framework agreement on financial market transactions PLN 50 000 50 000 50 000 Bill of exchange agreement Bank guarantee securing a rental contract PLN 427 427 427 National Centre for Research and Development Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0105/16 PLN 7 711 7 711 7 711 Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0110/16 PLN 3 846 3 846 3 846 Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0112/16 PLN 3 692 3 692 3 692 Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0118/16 PLN 1 358 1 358 1 358 Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0120/16 PLN 1 204 1 204 1 204 Bill of exchange agreement Subsidy agreement FENG.01.01-IP.01-006A/23-00 PLN 14 765 14 765 - Santander Bank Polska S.A. (formerly: BZ WBK S.A.) Bill of exchange agreement Framework agreement on financial market transactions PLN 23 500 23 500 23 500 Bank Polska Kasa Opieki Spółka Akcyjna Bill of exchange agreement Framework agreement on financial market transactions PLN 50 000 50 000 50 000 BNP Paribas Bank Polska S.A. Bill of exchange agreement Framework agreement on financial market transactions PLN 26 600 26 600 26 600
Page 68
68 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 27. Changes in the structure of the Group and Group companies during the reporting period On 21 March, the share capital of CD PROJEKT RED Inc. was increased by USD 708 thousand to USD 8 628 thousand. The increased value of the existing shares was paid up in full by a cash contribution made by the Parent Company. The purpose of the capital increase was to enable the payment of the first tranche of the price for the total of 100 000 shares in The Molasses Flood LLC, the ownership of which, pursuant to the agreements concluded with its minority shareholders on 12 and 18 March 2025, was passed on to CD PROJEKT RED Inc. on 31 March 2025. As a result, CD PROJEKT RED Inc. became the owner of 100% (i.e. 550 000) of the shares of the company. It was the intention of the Board of Directors of CD PROJEKT RED Inc. to carry out a merger of The Molasses Flood LLC, as the acquired company, and its sole shareholder, CD PROJEKT RED Inc., as the acquiring company. The registration of the merger took place after the balance sheet date (on 1 April 2025). The aim of the merger was to further integrate the team and the work conducted by The Molasses Flood LLC with the development structure and processes operating within the CD PROJEKT RED studio, and to simplify the structure of the Group. Note 28. Agreements that may result in future changes in the proportions of shares held by shareholders and bondholders Incentive plans for the years 2023 – 2027 Based on the resolutions of the Parent Company’s General Meeting of 18 April 2023, two new incentive schemes for the financial years 2023-2027 were introduced on that date: the Incentive Plan A and Incentive Plan B. Incentive Plan A The Incentive Plan A is addressed to persons who are not members of the Management Board of the Parent Company. The assumptions are that the entitlements in this plan will be granted in each of the financial years 2023- 2027 (i.e. in five phases). A maximum of 1 500 000 entitlements may be granted under the entire Incentive Plan A. The entitlements will be realized alternatively through: (i) offering the participants to subscribe for warrants entitling them to subscribe for an identical number of shares in the Parent Company issued as part of the conditional share capital increase, or (ii) offering the participants to purch ase from the Parent Company Treasury shares acquired by the Parent Company as part of a buy-back carried out for this purpose. The taking up and the exercise of the rights from the subscription warrants or, as the case may be, the purchase of the Parent Company’s shares by the participant under the Incentive Plan A will be conditional upon meeting the loyalty criterion (understood as the participants in the Incentive Plan A remaining in a legal relationship with the Parent Company or its related entity during the vesting period). The price of taking up or acquiring the Parent Company’s shares as part of executing entitlements under Plan A will correspond to the nominal value of the Parent Company’s shares. The vesting period will be 3 years as a minimum in each case. By the date of publication of this report: (i) as part of Phase 1 of the Incentive Plan A (in 2023), 100 444 entitlements were granted, of which 89 141 entitlements remain active; (ii) as part of Phase 2 of Incentive Plan A (in 2024), 183 189 entitlements were granted, of which 169 689 entitlements remain active. (iii) as part of Phase 3 of Incentive Plan A (in 2025), 123 186 entitlements were granted, of which 122 554 entitlements remain active. Assumptions made for the measurement of the Incentive Plan A for the years 2023 -2027 – Phase 1 Date of vesting CDR volatility ratio Risk-free interest rate Entitlements granted on 26.05.2023 44% 6.2% Entitlements granted on 27.05.2023 44% 6.2% Entitlements granted on 29.05.2023 44% 5.9% Entitlements granted on 07.06.2023 44% 5.8%
Page 69
69 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Assumptions made for the measurement of the Incentive Plan A for the years 2023 -2027 – Phase 2 Date of vesting CDR volatility ratio Risk-free interest rate Entitlements granted on 08.03.2024 43% 5.1% Entitlements granted on 10.03.2024 43% 5.1% Assumptions made for the measurement of the Incentive Plan A for the years 2023 -2027 – Phase 3 Date of vesting CDR volatility ratio Risk-free interest rate Entitlements granted on 09.03.2025 40% 5.2% Entitlements granted on 16.03.2025 40% 5.4% Changes in the entitlements granted under the Incentive Plan A for the years 2023 -2027 – Phases 1, 2 and 3 Specification 01.01.2025 – 31.03.2025 01.01.2024 – 31.12.2024 Number of entitlements (in pcs.) Unrealized as at the beginning of the period 1 500 000 1 500 000 Granted not realized as at the beginning of the period 260 660 94 051 Granted during the period 123 186 183 189 Forfeited during the period* 2 462 16 580 Unrealized as at the end of the period 1 500 000 1 500 000 Granted unrealized as at the end of the period 381 384 260 660 * All forfeitures for a given period by the date of publication of these financial statements Incentive Plan B The Incentive Plan B is addressed to both persons who are members of the Parent Company’s Management Board and persons who are not members of the Management Board. The assumptions are that the entitlements in this plan will be granted in each of the financial years 2023-2027 (i.e. in five phases). A maximum of 3 500 000 entitlements may be granted under the entire Incentive Plan B. The entitlements will be realized alternatively through: (i) off ering participants to subscribe for warrants entitling them to subscribe for an identical number of shares in the Parent Company issued as part of the conditional share capital increase, o r (ii) offering participants to purchase from the Parent Company Treasury shares acquired by the Parent Company as part of a buy-back carried out for this purpose. The taking up and the exercise of the rights from the subscription warrants or, as the case may be, the purchase of the Parent Company’s shares by the eligible persons under the Incentive Plan B will be conditional on the Parent Company determining that the performance condition (for 70% of the entitlements), the market condition (for 30% of the entitlements) and, in selected cases, the individual conditions and, in each case, the loyalty condition (understood as participants of the Incentive Plan A remaining in a legal relationship with the Parent Company or its related entity during the vesting pe riod) have been met. The base price of subscription for or purchase of the Parent Company’s shares as part of exercising the entitlements under Plan B will correspond to the price of the Parent Company’s shares at the close of the last trading session preceding the date of the relevant reso lution on the participant’s inclusion in the plan. The plan provides for the possibility to reduce the price of subscription for or purchase of the shares with a simultaneous proportional reduction in the number of rights to be exercised by the participant. The base vesting period corresponds to four consecutive financial years starting from the year in which the relevant phase began (with the possibility of being shortened to three financial years for performance -related entitlements in the event of a possible faster achievement of the four-year performance target over a three-year period). By the date of publication of this report: (i) as part of Phase 1 of the Incentive Plan B (in 2023), 662 000 entitlements were granted, of which 656 000 entitlements remain active; (ii) as part of Phase 2 of the Incentive Plan B (in 2024), 723 500 entitlements were granted, of which 723 500 entitlements remain active; (iii) as part of Phase 3 of the Incentive Plan B (in 2025), 740 500 entitlements were granted, of which 740 500 entitlements remain active.
Page 70
70 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Performance-related condition – 70% of the entitlements awarded under a given phase of the Incentive Plan B The fulfilment of the performance-related condition means achieving, in the relevant vesting period, a specific result understood as the sum of the consolidated net profits on the continuing operations of the CD PROJEKT Group plus the cost of valuation of the entitlements awarded under the relevant phase of the Incentive Plan B recognized by the CD PROJEKT Group entities in the same period. The performance-related condition for the entitlements awarded in Phase 1 of the Incentive Plan B for the years 2023-2026 (in the financial year 2023) is PLN 2 billion, and the performance-related condition for the entitlements awarded in Phase 2 of the Incentive Plan B for the years 2024 -2027 (in the financial year 2024) is PLN 3 billion, whereas the performance -related condition for the entitlements awarded in Phase 3 of the Incentive Plan B for the years 2025-2028 (in the financial year 2025) was set at PLN 4 billion. For each of the successive phases of the Incentive Plan B beginning in the financial years 2026 and 2027, the performance-related condition for the entitlements awarded in these phases for the relevant periods of four financial years will be determined by resolutions of the General Meeting of the Parent Company (at the request of the Management Board of the Parent Company). Market-related condition – 30% of the entitlements awarded under a given phase of the Incentive Plan B The fulfilment of the market-related condition means achieving a change in the Parent Company's share price on the Warsaw Stock Exchange (WSE) in such a manner that the change in the level of the Parent Company's share price expressed as a percentage, determined on the basis of the Parent Company’s share price at closing of the last trading session of the WSE of the most rec ent financial year which is subject to verification for the purposes of the performance-related condition referred to above, in relation to the Parent Company’s share price at closing of the last trading session of the WSE in the year preceding the year of the rele vant phase of the Incentive Plan B, will be higher than or equal to the change, expressed as a percentage and increased by 10 percentage points, in the level of the WIG (WSE Index) index in the same period. Assumptions made for the measurement of the Incentive Plan B for the years 2023-2027 – Phase 1 Date of vesting CDR volatility ratio WIG volatility ratio WIG correlation ratio Risk-free interest rate Entitlements granted on 26.05.2023 44% 21% 43% 6.1% Assumptions made for the measurement of the Incentive Plan B for the years 2023-2027 – Phase 2 Date of vesting CDR volatility ratio WIG volatility ratio WIG correlation ratio Risk-free interest rate Entitlements granted on 08.03.2024 43% 21% 42% 4.9% Entitlements granted on 10.03.2024 43% 21% 42% 4.9% Assumptions made for the measurement of the Incentive Plan B for the years 2023-2027 – Phase 3 Date of vesting CDR volatility ratio WIG volatility ratio WIG correlation ratio Risk-free interest rate Entitlements granted on 09.03.2025 40% 19% 42% 5.5% Entitlements granted on 16.03.2025 40% 19% 42% 5.5% Changes in entitlements granted under the Incentive Plan B for the years 2023-2027 – Phases 1, 2 and 3 Specification 01.01.2025 – 31.03.2025 01.01.2024 – 31.12.2024 Number of entitlements (in pcs.) Unrealized as at the beginning of the period 3 500 000 3 500 000 Granted not realized as at the beginning of the period 1 379 500 656 000 Granted during the period 740 500 723 500 Forfeited during the period* - - Unrealized as at the end of the period 3 500 000 3 500 000 Granted unrealized as at the end of the period 2 120 000 1 379 500 * All forfeitures by the date of publication of the financial statements for a given period
Page 71
71 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 29. Tax settlements Tax settlements and other areas of activities regulated by the tax law may be subject to inspections by administrative bodies which are entitled to impose high penalties or sanctions. The lack of reference to established legal regulations in Poland results in ambiguities and inconsistencies in the binding regulations. Frequent differences of opinion as to the legal interpretation of tax regulations, both internally within the state bodies and between the state bodies and enterprises, result in areas of uncertainty and conflict arising. Due to these factors, the tax risk in Poland is considerably higher than that usually existing in countries with more developed tax systems. In accordance with a general rule, tax settlements may be subject to inspections within five years from the end of the calendar year in which tax was paid. Following the fulfilment of the criteria set out in Article 19 of the Act of 30 May 2008 on certain forms of innovation suppo rt (consolidated text, Journal of Laws of 2022, item 2474), the Minister of Development and Technology, by decision No. DNP- V.4241.23.2024.4 of 4 October 2024, maintained the status of a research and development centre granted to the Parent Company by decision 4/CBR/18 of 19 June 2018. The status allows the Parent Company to use more broadly the research and development relief provided for in the Act of 15 February 1992 on corporate income tax (con solidated text, Journal of Laws of 2025, item 278, hereinafter: the “CIT Act”). Starting from the month following the submission of the CIT -8 tax return, the Parent Company is taking advantage of a relief in respect of an innovative employee. As part of the relief, it is possible to deduct the research and development relief which the Parent Company did not deduct from the tax base in the tax return for the previous tax year. As a result of using tax relief in respect of an innovative employee, the Parent Company is reducing tax advances remitted to the tax office in respect of personal income tax and flat-rate personal income tax for employees performing research and development projects for the Parent Company. At the same time, the amount of the research and development relief reported and not deducted is being reduced (the reduction is the product of the personal income tax liability due and the personal income tax rate). With effect from 1 January 2019, provisions were introduced into the Act on corporate income tax granting preferential taxati on at the 5% tax rate for qualified income earned by a taxpayer from qualified intellectual property rights. Having met the prerequ isites and formal conditions contained in the said legislation, the Parent Company accounts for income (in respect of selected sources of income) taking this tax relief into account.
Page 72
72 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 30. Explanations to the condensed consolidated statement of cash flows 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Cash and cash equivalents reported in the statement of cash flows 217 282 123 762 Cash and cash equivalents in the balance sheet 217 282 123 762 Depreciation and amortization 2 968 3 586 Amortization of intangible assets 616 518 Amortization of expenditure on development projects 262 306 Depreciation of property, plant and equipment 2 090 2 759 Depreciation of investment properties - 3 Foreign exchange (gains)/losses result from the following items: 17 921 (3 716) Foreign exchange gains/(losses) on measurement of bonds 13 050 (2 585) Foreign exchange gains/(losses) on measurement of private equity interests in the gaming sector 204 13 Foreign exchange (gains)/losses on measurement of loans granted as at the balance sheet date 106 (43) Foreign exchange gains/(losses) losses on measurement of bank deposits over 3 months 4 738 (1 072) Foreign exchange gains/(losses) on measurement of leases (177) (29) Interest and shares in profits comprise: (18 462) (16 176) Interest on bank deposits (9 136) (7 392) Interest on bonds (9 447) (8 936) Interest accrued on loans granted (37) (58) Interest on lease contracts 158 210 (Gains)/losses on investing activities arise from the following items: (18 219) 3 394 Sale of property, plant and equipment (421) (12) Net carrying amount of property, plant and equipment 483 6 Settlement and measurement of derivative financial instruments (18 358) 3 333 Measurement of private equity interests in the gaming sector 6 - Commission and fees on purchase of bonds 71 67 Changes in provisions result from the following items: 9 193 11 994 Increase/(Decrease) in provisions for liabilities 15 116 12 329 Increase/(Decrease) in provisions for employee benefits 3 158 2 025 Increase/(Decrease) in provision for costs of performance-related and other remuneration recognized under expenditure on development projects (9 081) (2 360) (Increase)/Decrease in inventories 1 142 316
Page 73
73 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Changes in receivables result from the following items: 52 095 92 246 (Increase)/Decrease in current receivables in the balance sheet 63 963 80 792 (Increase)/Decrease in non-current receivables in the balance sheet 2 3 Withholding tax paid abroad (4 748) (2 476) Adjustment for current income tax (15 175) 12 820 (Increase)/Decrease in prepayments for development projects 7 395 1 164 (Increase)/Decrease in prepayments for property, plant and equipment and intangible assets 658 (57) Changes in current liabilities, excluding financial liabilities, result from the following items: (21 566) (15 361) Increase/(Decrease) in current liabilities in the balance sheet (35 303) (5 857) Adjustment for current income tax (1 241) 222 Increase/(Decrease) in financial liabilities 7 695 1 980 Increase/(Decrease) in liabilities resulting from purchase of property, plant and equipment 7 278 (11 873) Increase/(Decrease) in liabilities resulting from purchase of intangible assets 5 167 Changes in other assets and liabilities result from the following items: 3 996 618 Change in prepayments and accruals in the balance sheet 1 788 1 133 Increase/(Decrease) in deferred income in the balance sheet 2 266 (454) Adjustment for prepayments and deferred costs with the corresponding entry in liabilities (58) (61) “Other adjustments” comprise: 8 513 4 734 Costs of the incentive plan 7 565 4 032 Measurement of derivative financial instruments (9) (87) Amortization and depreciation included under cost of sales and other operating expenses 708 621 Foreign exchange differences on translation 236 63 Other adjustments 13 105
Page 74
74 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 31. Cash flows and non-monetary changes resulting from changes in liabilities in financing activities 01.01.2025 Cash flows Non-monetary changes 31.03.2025 Takeover of fixed assets leased Termination of a lease contract Foreign exchange differences Interest accrued Lease liabilities 20 150 (950) 61 (229) (177) 158 19 013 Total 20 150 (950) 61 (229) (177) 158 19 013 01.01.2024 Cash flows Non-monetary changes 31.03.2024 Takeover of fixed assets leased Termination of a lease contract Foreign exchange differences Interest accrued Lease liabilities 23 309 (1 139) 62 - (19) 210 22 423 Total 23 309 (1 139) 62 - (19) 210 22 423
Page 75
75 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 32. Post balance sheet events On 1 April 2025, a merger was registered between The Molasses Flood LLC (as the target company) and CD PROJEKT RED Inc. (the acquiring company). The merger was conducted in accordance with US law. The rights and obligations of The Molasses Flood were assumed by CD PROJEKT RED Inc. The merger was intended to further integrate the team and work carried out by The Molasses Flood LLC with the development structure and processes operating within the CD PROJEKT RED studio, and to simplify the structure of the Group. On 7 May 2025, in the Current Report No. 6/2025 , the Parent Company’s Management Board announced that it had adopted a resolution on accepting and referring to the Supervisory Board and the Annual General Meeting a proposition concerning the distribution of the net profit for 2024. The Management Board has proposed to allocate PLN 99 910 510 for the payment of a dividend, which means the dividend of PLN 1 per share. The Management Board recommends transferring the remaining part of the net profit of PLN 370 762 147.32 to the supplementary capital. At the same time, the Management Board recommended setting the record date at 30 June 2025 and the dividend payment date at 9 July 2025. On 20 May 2025, in the Current Report No. 8/2025, the Management Board of the Parent Company announced that the Supervisory Board had given a positive opinion on the Management Board’s proposal and approved its recommendation both with regard to the method of profit distribution and the designation of the dates related to the payment of the dividend. On 7 May 2025, in the Current Report No. 7/2025 , the Management Board of the Parent Company announced the adoption of a resolution under which it: (i) decided on the possibility of exercising all or part of the entitlements granted to the participants under the first stage of the Incentive Plan A for the financial years 2023-2027 by making an offer to the participants to purchase from the Parent Company its Treasury shares (at the same time taking into account the possibility of exercising the entitlements granted to the participants under the first stage also through the second of the possible forms of exercising the entitlements); (ii) it decided to request the next General Meeting to approve the purchase of the Parent Company’s Treasury shares pursuant to Article 362 § 1(8) of the Code of Commercial Companies for the purpose of exercising all or part of the entitlements granted to the participants under the first stage of the Incentive Plan A by making an offer to the participants to purchase from the Parent Company its Treasury shares, under the conditions set out in the resolution. According to the published draft resolution, the total number of shares purchased by the Parent Company will not exceed 89 601, the price of one share may not be lower than PLN 1.00 or higher than PLN 450.00, and the total amount that may be allocated by the Parent Company for the buyback will be a maximum of PLN 40 320 450.00.
Page 76
Additional information 5
Page 77
77 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Litigation pending Criminal cases in which CD PROJEKT S.A. has the status of the aggrieved party Case against private individuals (including former members of the Management Board of Optimus S.A.) for acts to the detriment of the Company On 27 October 2016, the Regional Court in Warsaw, in case ref. no. XVIII K 126/09 as a result of the indictment of the Public Prosecutor’s Office of the Regional Prosecutor’s Office in Warsaw to the Regional Court, passed a sentence convicting Michał L., Piotr L. and Michał D., ascribing to them the commission of acts under Article 296 § 1 of the Penal Code and Article 296 § 3 o f the Penal Code and others. The Parent Company acted as an auxiliary prosecutor at first instance (a status it retains until the end of the proceedings). The scope of damages awarded under Article 46 of the Polish Penal Code amounted to a total of PLN 210 thousand, with the damage ascertained by the court amounting to at least PLN 16 million according to the operative part of the verdict (this method of determining damage results from the principles of adjudication in criminal proceedings). The Company appealed against the judgment, requesting that it be amended, including, inter alia, in the part relating to the amount of damages awarded to the Parent Company. Appeals were also filed by the defendants' counsels – against the entire decision and by the prosecutor – against a part of the judgment. On 26 October 2017, the Court of Appeals overturned the judgment of the Court of First Instance in the case in its entirety and remitted the case to the Court of First Instance for retrial in its entirety. The Regional Court in Warsaw is currently examining the case under case number XVIII K 316/17. The Parent Company is acting as an auxiliary prosecutor in the case. Litigation involving subsidiaries Class action complaint against GOG concerning the compliance of technical solutions applied by GOG with the US Video Privacy Protection Act. On 6 September 2024, the Company’s Management Board received information that a civil Class Action Complaint against the Parent Company had been filed in the United States District Court for the Eastern District of New York. The complaint was filed on behalf of a user and a putative class of users of the GOG.com digital distribution platform for the video games (“GOG”), which is owned by GOG sp. z o.o., a subsidiary of the Company, and relates to an alleged breach by GOG sp. z o.o. of the US Video Privacy Protection Act (VPPA) through the use of Facebook tracking scripts on the GOG.com website for remarketing purposes without valid user consent, according to the plaintiff. The plaintiff was seeking a judicial determination of whether the use of certain technical solutions by the GOG platform complies with the US VPPA Act and the payment of damages should the court determine that the breach has occurred. The lawsuit was effectively served on 10 September 2024. On 5 December 2024, the Parent Company was informed that an amended class action complaint had been filed. As a result of the actions taken, the defendant was changed from the Parent Company, which was originally named as the defendant in this case, to GOG Sp. z o.o. The claims made against the Company were withdrawn in full (voluntary dismissal without prejudice) and the Parent Company was no longer a party to the proceedings from that point onwards. GOG sp. z o.o. has taken steps to defend its interests. In the Current Report No. 30/2024 published on the matter, the Parent Company’s Management Board announced that, as a result of the analysis carried out in cooperation with the law firm, it had assessed that the degree of materiality of the case did not justify further information on its status in the form of current reports. On 6 May 2025, in view of the filing of a Notice of Unrestricted Voluntary Dismissal with prejudice by the plaintiff in the U nited States District Court for the Eastern District of New York, the class action lawsuit against GOG Ltd. was withdrawn. The case is thus closed. Proceedings of GOG sp. z o.o. before the Voivodeship Administrative Court in Kraków On 19 August 2022, the Head of the Małopolski Customs and Tax Office in Kraków issued a decision against the subsidiary GOG sp. z o.o., determining the corporate income tax liability for 2016. The Management Board of GOG sp. z o.o. paid the liability resulting from the decision received which amounted to PLN 2 638 thousand, including interest due as at the payment date. Irrespective of the above, GOG sp. z o.o. disagreed with the assessment of the tax authorities and appealed against the decision on 5 September 2022. On 22 May 2023, the Head of Małopolski Customs and Tax Office in Kraków, which also acted as the appeal authority in this case, issued a decision upholding the contested decision. The appeal authority’s decision was served on GOG sp. z o.o. on 5 June 2023. On 4 July 2023, the Management Board of GOG sp. z o.o., disagreeing with the position of the tax authority, filed a complaint against the issued decision with the Voivodeship Administrative Court in Kraków. On 3 October 2023, a hearing before the Voivodeship Administrative Court in Kraków was held, as a result of which the said Court issued a judgment annulling the decisions of the Head of Małopolski Customs and Tax Office of 19 August 2022 and 22 May 2023. As of the date of this report, this judgment has the status of a final decision and the case is again at the evidence stage. On 29 May 2024, the Head of the Małopolski Customs and Tax Office in Kraków issued a new decision determining the amount of the corporate income tax liability for 2016. The amount of the tax liability was reduced by PLN 116 226 relative to the decision of 19 August 2022. On 26 June 2024, the Management Board of GOG sp. z o.o., disagreeing with the tax authority's assessment, filed an appeal against the decision with the Director of the Tax Administration Chamber in Kraków. On 25 June 2024, in connection with a sentence of the Voivodeship Administrative Court in Kraków, GOG sp. z o.o. received the amount of PLN 2 578 500 from the First Masovian Tax Office in Warsaw constituting a tax refund.
Page 78
78 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. On 25 February 2025, the Director of the Tax Administration Chamber in Kraków, which also acted as the appeal authority in th is case, issued a decision upholding the contested decision. The decision was served on GOG sp. z o.o. on 11 March 2025. On 13 March 2025, the Management Board of GOG sp. z o.o. paid the liability resulting from the decision received which amounted to PLN 2 466 927, including interest due as at the payment date. Independently, however, disagreeing with the tax authority's assessment, the Management Board of GOG sp. z o.o. filed a complaint against the issued decision with the Voivodeship Administrative Court in Kraków on 10 April 2025. As at the date of publication of this report, the Voivodeship Administrative Court in Kraków has not ruled on the complaint. Shareholding structure Shareholders holding directly or indirectly through subsidiaries at least 5% of the total number of votes at the Parent Company’s General Shareholders Meeting as at the date of publication of the quarterly report The Parent Company’s share capital amounts to PLN 99 910 510 and consists of 99 910 510 shares with a nominal value of PLN 1.00 each. The shareholding structure, including the percentage share in the share capital and at the General Shareholders Meeting of the Parent Company, is updated on the basis of formal notifications received by the Parent Company from shareholders holding at least 5% of the total number of votes at the General Shareholders Meeting of the Parent Company. Shareholder Number of shares Number of shares % share in share capital Number of votes at the GSM % of votes at the GSM Marcin Iwiński 12 650 000 12.66% 12 650 000 12.66% Michał Kiciński* 9 989 363 10.00% 9 989 363 10.00% Piotr Nielubowicz 6 858 717 6.86% 6 858 717 6.86% Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. (total for all funds managed)** 5 417 124 5.42% 5 417 124 5.42% including Nationale- Nederlanden Otwarty Fundusz Emerytalny** 5 030 225 5.03% 5 030 225 5.03% * In accordance with the last notification submitted to the Parent Company dated 13 November 2023. ** In accordance with the last notification submitted to the Parent Company dated 12 August 2024. Changes in the ownership structure of significant blocks of the Parent Company’s shares from the date of submission of the previous interim report According to the notifications received by the Parent Company, there were no changes in the ownership structure of significan t blocks of the Parent Company’s shares after the date of the last interim report (annual report).
Page 79
79 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Parent Company’s shares held by the members of the Management Board and the Supervisory Board Changes in the number of shares held by the members of the Management Board and the Supervisory Board* Name and surname Position As at 01.01.2025 As at 31.03.2025 As at 28.05.2025 Piotr Nielubowicz Member of the Board Chief Financial Officer 6 858 717 6 858 717 6 858 717 Adam Badowski Member of the Board Joint Chief Executive Officer 692 640 692 640 692 640 Michał Nowakowski Member of the Board Joint Chief Executive Officer 530 290 530 290 530 290 Piotr Karwowski Member of the Board Joint Chief Operating Officer 108 728 108 728 108 728 Paweł Zawodny Member of the Board Joint Chief Operating Officer 18 508 18 508 18 508 Marcin Iwiński Co-Chair of the Supervisory Board 12 873 520 12 650 000 12 650 000 Adam Kiciński Co-Chair of the Supervisory Board 4 046 001 4 046 001 4 046 001 * Based on the statements and notifications submitted to the Company Reference to published estimates The Group did not publish any estimated data relating to the period presented.
Page 80
Interim condensed separate financial statements of CD PROJEKT S.A. 6
Page 81
81 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Interim condensed separate income statement Note 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Sales revenue 181 299 186 938 Sales of products 178 069 183 766 Sales of services 1 208 275 Sales of goods for resale and materials 2 022 2 897 Cost of sales of products, services, goods for resale and materials 16 138 29 987 Costs of products and services sold 13 361 27 114 Cost of goods for resale and materials sold 2 777 2 873 Gross profit/(loss) on sales 165 161 156 951 Selling expenses 22 216 22 887 Total administrative expenses, including: 47 479 54 433 cost of research projects 8 198 20 643 Other operating income 2 131 3 712 Other operating expenses 1 627 1 507 (Impairment)/reversal of impairment of financial instruments 7 (1) Operating profit/(loss) 95 977 81 835 Finance income 39 107 18 273 Finance costs 21 138 2 408 Profit/(loss) before tax 113 946 97 700 Income tax A 27 058 (2 833) Net profit/(loss) 86 888 100 533 Net earnings/(loss) per share (in PLN) Basic for the reporting period 0.87 1.01 Diluted for the reporting period 0.86 1.01 Interim condensed separate statement of comprehensive income 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Net profit /(loss) 86 888 100 533 Other comprehensive income subject to reclassification to gains or losses after specific conditions have been met 1 124 (691) Measurement of derivative financial instruments - fair value through other comprehensive income, taking into account the tax effect 1 124 (691) Other comprehensive income not subject to reclassification to gains or losses - - Total comprehensive income 88 012 99 842
Page 82
82 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Interim condensed separate statement of financial position Note 31.03.2025 31.12.2024* 31.03.2024 NON-CURRENT ASSETS 1 717 185 1 558 149 1 441 039 Property, plant and equipment 276 859 258 361 197 009 Intangible assets 66 075 66 712 68 432 Expenditure on development projects 784 100 692 726 552 049 Investment properties 31 319 31 671 33 858 Goodwill C 49 168 49 168 49 168 Investments in subordinated entities G 67 339 63 473 61 024 Prepayments and deferred costs 3 300 3 770 4 205 Other financial assets G 331 629 292 137 417 019 Deferred tax assets A 107 004 99 731 57 902 Other receivables F,G 392 400 373 CURRENT ASSETS 1 327 971 1 395 792 1 194 318 Inventories 659 1 802 3 260 Trade receivables F,G 85 887 167 893 88 956 Current income tax receivable - 15 170 13 888 Other receivables F,G 110 853 72 435 66 110 Prepayments and deferred costs 10 039 10 614 11 655 Other financial assets G 470 174 540 486 426 025 Bank deposits over 3 months G 487 346 522 524 496 977 Cash and cash equivalents G 163 013 64 868 87 447 TOTAL ASSETS 3 045 156 2 953 941 2 635 357 * restated data
Page 83
83 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Note 31.03.2025 31.12.2024 31.03.2024 EQUITY 2 859 135 2 763 464 2 470 780 Share capital 11,22* 99 911 99 911 99 911 Supplementary capital 2 025 642 2 025 642 1 681 466 Share premium 116 700 116 700 116 700 Other reserves 59 320 50 537 28 083 Retained earnings / (Accumulated losses) 470 674 - 444 087 Net profit (loss) for the period 86 888 470 674 100 533 NON-CURRENT LIABILITIES 21 439 21 506 35 793 Other financial liabilities G 16 519 16 740 17 912 Other liabilities 2 213 2 274 2 434 Deferred income 1 880 1 665 2 153 Provision for retirement and similar benefits 827 827 497 Other provisions B - - 12 797 CURRENT LIABILITIES 164 582 168 971 128 784 Other financial liabilities G 1 223 11 608 2 665 Trade payables G 16 393 39 780 26 501 Current income tax liabilities 1 766 - - Other liabilities 5 935 5 807 4 881 Deferred income 10 769 8 740 6 503 Provision for retirement and similar benefits 9 449 6 914 8 308 Other provisions B 119 047 96 122 79 926 TOTAL EQUITY AND LIABILITIES 3 045 156 2 953 941 2 635 357 * Detailed information on changes in the items are presented in the relevant notes to the interim condensed consolidated financial statements.
Page 84
84 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Interim condensed separate statement of changes in equity Share capital Supplementary capital Share premium Other reserves Retained earnings / (Accumulated losses) Net profit (loss) for the period Total equity 01.01.2025 – 31.03.2025 Equity as at 01.01.2025 99 911 2 025 642 116 700 50 537 470 674 - 2 763 464 Costs of the incentive plan - - - 7 659 - - 7 659 Total comprehensive income - - - 1 124 - 86 888 88 012 Equity as at 31.03.2025 99 911 2 025 642 116 700 59 320 470 674 86 888 2 859 135 Share capital Supplementary capital Share premium Other reserves Retained earnings / (Accumulated losses) Net profit (loss) for the period Total equity 01.01.2024 – 31.12.2024 Equity as at 01.01.2024 99 911 1 681 466 116 700 24 691 444 087 - 2 366 855 Costs of the incentive plan - - - 23 575 - - 23 575 Payment of dividend - - - - (99 911) - (99 911) Appropriation of the net profit/offset of loss - 344 176 - - (344 176) - - Total comprehensive income - - - 2 271 - 470 674 472 945 Equity as at 31.12.2024 99 911 2 025 642 116 700 50 537 - 470 674 2 763 464
Page 85
85 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Share capital Supplementary capital Share premium Other reserves Retained earnings / (Accumulated losses) Net profit (loss) for the period Total equity 01.01.2024 – 31.03.2024 Equity as at 01.01.2024 99 911 1 681 466 116 700 24 691 444 087 - 2 366 855 Costs of the incentive plan - - - 4 083 - - 4 083 Total comprehensive income - - - (691) - 100 533 99 842 Equity as at 31.03.2024 99 911 1 681 466 116 700 28 083 444 087 100 533 2 470 780
Page 86
86 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Interim condensed separate statement of cash flows 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 OPERATING ACTIVITIES Net profit /(loss) 86 888 100 533 Total adjustments: 51 852 117 624 Depreciation of property, plant and equipment and amortization of intangible assets, expenditure on development projects and investment properties 2 489 3 117 Amortization of development projects recognized as cost of sales 13 775 26 372 Foreign exchange (gains)/losses 18 039 (3 716) Interest and shares in profits (18 041) (15 854) (Gains)/losses on investing activities (18 217) 3 397 Increase/(Decrease) in provisions 11 629 14 256 (Increase)/Decrease in inventories 1 143 316 (Increase)/Decrease in receivables 46 901 100 258 Increase/(Decrease) in liabilities, excluding loans and borrowings (15 914) (13 639) Change in other assets and liabilities 3 232 (1 407) Other adjustments 6 816 4 524 Cash from operating activities 138 740 218 157 Income tax expense 22 310 (5 309) Withholding tax paid abroad 4 748 2 476 Income tax (paid)/refunded (12 647) (23 689) Net cash from operating activities 153 151 191 635
Page 87
87 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 INVESTING ACTIVITIES Inflows 357 154 168 354 Sale of intangible assets and property, plant and equipment 189 6 Repayment of loans granted 455 - Expiry of bank deposits over 3 months 278 634 145 154 Redemption of bonds 66 000 10 000 Interest on bonds 2 770 1 618 Interest received on deposits 8 692 7 049 Inflows from execution of forward contracts 366 4 450 Other inflows from investing activities 48 77 Outflows 411 405 401 060 Acquisition of intangible assets and property, plant and equipment 32 345 12 105 Expenditure on development projects 95 194 49 715 Expenditure on intangible assets - 147 Loans granted 1 776 - Contribution to the capital of a subsidiary 2 750 3 193 Placement of bank deposits over 3 months 248 194 302 854 Purchase of bonds and cost of their purchase 31 146 33 046 Net cash from investing activities (54 251) (232 706) FINANCING ACTIVITIES Inflows 9 4 Settlement of lease receivables 8 3 Interest received 1 1 Outflows 763 969 Payment of lease liabilities 618 779 Interest paid 145 190 Net cash from financing activities (754) (965) Net increase/(decrease) in cash and cash equivalents 98 146 (42 036) Change in cash and cash equivalents in the balance sheet 98 146 (42 036) Cash and cash equivalents as at the beginning of the period 64 868 129 483 Cash and cash equivalents as at the end of the period 163 014 87 447 Explanations to the condensed separate statement of cash flows 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 “Other adjustments” comprise: 6 816 4 524 Costs of the incentive plan 6 543 3 362 Measurement of derivative financial instruments (126) 363 Amortization and depreciation reported under cost of sales and other operating expenses 399 680 Other adjustments - 119
Page 88
88 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Assumption of comparability of the financial statements and consistency of accounting policies The accounting policies applied in these interim condensed separate financial statements, material judgments made by the Management Board with regard to the accounting policies applied by the Company and the main sources of estimating uncertainties are consistent, in all material respects, with the policy adopted for preparing the annual financial statements of CD PROJEKT S.A. for 2024, with the exception of the presentation changes described below. These condensed financial statements should be read in conjunction with the financial statements for the year ended 31 December 2024. Presentation changes In these interim condensed separate financial statements for the period from 1 January to 31 March 2025, changes were introduced in the presentation of selected financial data. In order to ensure comparability of the financial data in the reporting period, the presentation of the data as at 31 December 2024 was changed. The data is presented after the following adjustment: In the statement of financial position as at 31 December 2024, the presentation of some of the buildings and structures held by the Company changed. Consequently, the following items changed: - Property, plant and equipment – a decrease of PLN 65 thousand; - Investment properties – an increase of PLN 65 thousand.
Page 89
89 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Notes to the separate financial statements of CD PROJEKT S.A. A. Deferred tax Deductible temporary differences underlying the deferred tax asset 31.12.2024 Differences affecting the deferred tax recognized in the profit or loss 31.03.2025 Provision for other employee benefits 4 879 1 289 6 168 Provision for costs of performance-related and other remuneration 52 478 8 377 60 855 Foreign exchange losses 19 345 19 041 38 386 Difference between the carrying and tax amounts of expenditure on development projects 21 692 (168) 21 524 Salaries and wages and social security payable in future periods 24 15 39 Other provisions 40 610 1 699 42 309 Research and development relief 508 748 (3 965) 504 783 Prepayments recognized as revenue for tax purposes 4 194 388 4 582 Tax value of non-current assets leased 18 421 (861) 17 560 Total deductible differences, including: 670 391 25 815 696 206 taxed at 5% 94 007 18 374 112 381 taxed at 19% 576 384 7 441 583 825 Deferred tax assets 114 214 2 332 116 546
Page 90
90 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Taxable temporary differences underlying the deferred tax provision 31.12.2024 Differences affecting the deferred tax recognized in the profit or loss 31.03.2025 Difference between the net carrying amount and tax amount of property, plant and equipment and intangible assets 16 622 604 17 226 Current period revenue invoiced in the subsequent period/accrued income 163 542 (83 381) 80 161 Foreign exchange gains 180 298 478 Difference between the carrying and tax amounts of expenditure on development projects 34 424 7 239 41 663 Tax value of non-current assets leased 18 296 (1 373) 16 923 Other 46 - 46 Total taxable differences, including: 233 110 (76 613) 156 497 taxed at 5% 212 910 (68 685) 144 225 taxed at 19% 20 200 (7 928) 12 272 Deferred tax provisions 14 483 (4 941) 9 542 The deferred part of the income tax was determined either at the corporate income tax rate of 19% for the tax base corresponding to income from other sources, or at the rate of 5% for the tax base corresponding to income from qualifying intellectual prop erty (the so-called IP BOX). When determining the appropriate tax rate for temporary differences, the Parent Company relied on forecasts of which tax base will give rise to the realization of the temporary differences recognized. Net deferred tax assets/provisions 31.03.2025 31.12.2024 31.03.2024 Deferred tax assets 116 546 114 214 68 566 Deferred tax provisions 9 542 14 483 10 664 Income tax expense recognized in the income statement 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 Current income tax, including: 34 331 13 346 adjustments relating to prior years 21 847 - withholding tax paid abroad 4 748 2 476 Change in deferred tax (7 273) (16 179) Income tax expense recognized in the income statement 27 058 (2 833)
Page 91
91 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. B. Other provisions 31.03.2025 31.12.2024 31.03.2024 Provision for liabilities, including: 119 047 96 122 92 723 provision for costs of performance-related and other remuneration 66 010 56 713 61 221 provision for costs of the audit and review of the financial statements 195 128 48 provision for costs of external services 37 527 21 907 - provision for other costs 15 315 17 374 31 454 Total, including: 119 047 96 122 92 723 current 119 047 96 122 79 926 non-current - - 12 797 Changes in other provisions Provision for costs of performance-related and other remuneration Other provisions Total As at 01.01.2025 56 713 39 409 96 122 Provisions recorded during the year 9 297 34 154 43 451 Provisions utilized/released - 20 526 20 526 As at 31.03.2025, including: 66 010 53 037 119 047 current 66 010 53 037 119 047 non-current - - - C. Goodwill Goodwill recognized in business combinations and acquisitions 31.03.2025 31.12.2024 31.03.2025 CD Projekt Red sp. z o.o. 39 147 39 147 39 147 Strange New Things business 10 021 10 021 10 021 Total 49 168 49 168 49 168 Changes in goodwill During the period from 1 January to 31 March 2025, there were no changes in goodwill. D. Business combinations No business combinations of the Group entities took place in the period from 1 January to 31 March 2025. E. Dividend paid (or declared) and received During the period from 1 January to 31 March 2025, the Parent Company did not pay or receive any dividends.
Page 92
92 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. F. Trade and other receivables 31.03.2025 31.12.2024 31.03.2024 Trade and other receivables, gross 197 243 240 845 155 519 Write-downs 110 117 80 Trade and other receivables, net 197 133 240 728 155 439 from related entities 20 890 10 739 11 216 from other entities 176 243 229 989 144 223 Changes in write-downs of receivables Trade receivables Other receivables Total OTHER ENTITIES Write-downs as at 01.01.2025 117 - 117 Increases - - - Decreases, including: 7 - 7 reversal of write-downs 7 - 7 Write-downs as at 31.03.2025 110 - 110
Page 93
93 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Current and overdue trade receivables as at 31.03.2025 Total Not overdue Overdue, in days 1 – 60 61 – 90 91 – 180 181 – 360 >360 RELATED ENTITIES gross receivables 6 458 6 458 - - - - - write-down resulting from the ratio 0% 0% 0% 0% 0% 0% write-down determined individually - - - - - - - total expected credit losses - - - - - - - Net receivables 6 458 6 458 - - - - - Total Not overdue Overdue, in days 1 – 60 61 – 90 91 – 180 181 – 360 >360 OTHER ENTITIES gross receivables 79 539 78 657 730 - 42 33 77 write-down resulting from the ratio 0% 0% 0% 0% 0% 0% write-down determined individually 110 - - - - 33 77 total expected credit losses 110 - - - - 33 77 Net receivables 79 429 78 657 730 - 42 - - Total gross receivables 85 997 85 115 730 - 42 33 77 impairment write- downs 110 - - - - 33 77 Net receivables 85 887 85 115 730 - 42 - -
Page 94
94 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Other receivables 31.03.2025 31.12.2024 31.03.2024 Other gross receivables, including: 111 246 72 835 66 483 tax receivables, other than corporate income tax 58 036 53 728 53 486 prepayments for inventories 36 281 9 557 9 211 prepayments for development projects 15 580 8 185 3 337 prepayments for property, plant and equipment and intangible assets 883 225 20 security deposits 442 440 411 settlements with employees 24 14 12 settlements with suppliers of property, plant and equipment items - 664 - settlements with the members of the Management Board - - 1 other - 22 5 Write-downs - - - Other net receivables, including: 111 246 72 835 66 483 current 110 854 72 435 66 110 non-current 392 400 373 G. Information on financial instruments Fair values of specific classes of financial instruments The Management Board of the Company analysed specific classes of financial instruments. Based on the analysis, it was concluded that the carrying amounts of the instruments do not differ materially from their fair values as at both 31 March 2025, 31 December 2024 and 31 March 2024. 31.03.2025 31.12.2024 31.03.2024 LEVEL 1 Assets measured at fair value Financial assets measured at fair value through other comprehensive income 227 254 239 103 226 605 bonds issued by or secured with a guarantee of foreign governments - EUR 21 782 22 105 21 618 bonds issued by or secured with a guarantee of foreign governments - USD 205 472 216 998 204 987 LEVEL 2 Assets measured at fair value through profit or loss Derivatives 8 643 271 10 900 currency forwards - EUR 872 271 1 553 currency forwards - USD 7 771 - 9 347 Private equity interests in the gaming sector 4 770 4 980 3 505 private equity interests in the gaming sector - SEK 966 933 931 private equity interests in the gaming sector - USD 3 804 4 047 2 574 Liabilities measured at fair value through profit or loss Derivatives 181 9 927 363 currency forwards - USD - 9 620 - currency forwards - JPY 181 307 363
Page 95
95 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Financial instruments measured at fair value are classified according to a three-level fair value hierarchy: Level 1 – quoted prices in active markets for identical assets or liabilities. Level 2 – fair value based on observable market data. Level 3 – fair value based on market data that is not observable in the market. Financial assets – classification and measurement 31.03.2025 31.12.2024 31.03.2024 Financial assets measured at amortized cost 1 297 774 1 343 954 1 275 787 Other non-current receivables 392 400 373 Trade receivables 85 887 167 893 88 956 Cash and cash equivalents 163 013 64 868 87 447 Bank deposits over 3 months 487 346 522 524 496 977 Treasury bonds and bonds guaranteed by the State Treasury 557 196 585 521 598 785 Loans granted 3 940 2 748 3 249 Financial assets measured at cost 67 339 63 473 61 024 Investments in subordinated entities 67 339 63 473 61 024 Financial assets measured at fair value through other comprehensive income 227 254 239 103 226 605 Bonds issued by or secured with a guarantee of foreign governments 227 254 239 103 226 605 Financial assets measured at fair value through profit or loss 13 413 5 251 14 405 Derivative financial instruments 8 643 271 10 900 Private equity interests in the gaming sector 4 770 4 980 3 505 Total financial assets 1 605 780 1 651 781 1 577 821 Financial liabilities – classification and measurement 31.03.2025 31.12.2024 31.03.2024 Financial liabilities measured at amortized cost 33 954 58 201 46 715 Trade payables 16 393 39 780 26 501 Other financial liabilities 17 561 18 421 20 214 Financial liabilities measured at fair value through profit or loss 181 9 927 363 Derivative financial instruments 181 9 927 363 Total financial liabilities 34 135 68 128 47 078 In accordance with the requirements of IFRS 9 Financial Instruments, the Company has analysed the business model for managing financial assets and examined the characteristics of contractual cash flows for each component of the bond portfolio, and concluded that: the purpose of investments in domestic and foreign Treasury bonds and domestic and foreign bonds guaranteed by governments is to hold them to maturity and to collect contractual cash flows; investment mandates for managing the foreign Treasury bonds portfolio (bonds issued by or secured with a guarantee of foreign governments) allow bonds to be sold before maturity as part of the adopted strategy; all bonds purchased meet the SPPI test. As a result of the analysis conducted, purchased bonds were classified into two financial asset management models which differ in terms of the entity managing the bond portfolio. Polish Treasury bonds and bonds guaranteed by the Polish State Treasury are measured at amortized cost, because they are held to collect contractual cash flows. Foreign Treasury bonds and foreign bonds guaranteed by governments are measured at fair value through other comprehensive income because of the investment mandate which allows the possibility of the portfolio being managed by an Asset Manager. In accordance with the requirements of IFRS 13 Fair Value Measurement , the Company analysed the valuation of the financial instruments measured at amortized cost in the separate statement of financial position in order to determine their fair value s and their classification in the fair value hierarchy.
Page 96
96 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Listed debt securities were classified as Level 1. These are State Treasury Bonds and bonds secured with a guarantee by the State Treasury, the fair value of which was determined on the basis of the market valuation provided by the brokerage firm under th e applicable brokerage services agreement. 31.03.2025 31.12.2024 31.03.2024 LEVEL 1 Fair value of assets measured at amortized cost 557 815 583 156 596 796 Treasury bonds and bonds guaranteed by the State Treasury 557 815 583 156 596 796 Other items of financial assets and financial liabilities were classified as Level 3. With regard to equity interests in other entities, the Company estimates the fair values of the shares held using the method which consists in forecasting future cash flows generated by a relevant cash generating unit and requires determining a discount rate to be used to calculate the present value of these cash flows. In justified cases, the Company adopts historical cost as an acceptable approximation of the fair value. The Company did not measure the fair values of trade receivables and payables, cash and cash equivalents, bank deposits over 3 months and loans granted with variable interest rates, because their carrying amounts are considered by the Company to be a reasonable approximation of their fair values. There were no movements between the levels in the fair value hierarchy in the reporting period and in the comparative period.
Page 97
97 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. H. Transactions with related entities Sales to related entities Purchases from related entities 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 01.01.2025 – 31.03.2025 01.01.2024 – 31.03.2024 SUBSIDIARIES GOG sp. z o.o. 3 720 4 949 9 77 CD PROJEKT RED Inc. 840 170 15 529 7 704 CD PROJEKT RED Canada Ltd. 169 35 4 339 4 288 The Molasses Flood LLC 174 19 9 708 6 999 CD PROJEKT SILVER Inc. - - 183 - MANAGEMENT BOARD OF THE COMPANY, MEMBERS OF THE SUPERVISORY BOARD AND OTHER RELATED ENTITIES Michał Nowakowski - 1 - - Karolina Kicińska 173 - - - Maciej Nielubowicz - 1 - - OTHER ENTITIES Other members of management 2 - - -
Page 98
98 Interim condensed separate financial statements of CD PROJEKT for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Receivables from related entities Liabilities to related entities 31.03.2025 31.12.2024 31.03.2024 31.03.2025 31.12.2024 31.03.2024 SUBSIDIARIES GOG sp. z o.o. 3 471 5 295 4 760 - 125 32 CD PROJEKT RED Inc. 12 739 3 958 2 384 10 966 5 400 2 792 CD PROJEKT RED Canada Ltd. 2 386 1 442 2 673 3 259 1 746 1 766 The Molasses Flood LLC 6 234 2 792 4 647 6 592 3 006 2 616 MANAGEMENT BOARD OF THE COMPANY, MEMBERS OF THE SUPERVISORY BOARD AND OTHER RELATED ENTITIES Michał Nowakowski - - 1 3 10 - Adam Badowski - - - 3 1 - Piotr Karwowski - - - 2 - - Paweł Zawodny - - - 2 - - Karolina Kicińska - - - - 173 - OTHER ENTITIES Other members of management 4 - - 24 - -
Page 99
99 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Statement of the Management Board of the Parent Company On the fairness of preparation of the consolidated financial statements In accordance with the requirements of the Regulation of the Minister of Finance of 29 March 2018 on current and periodical information submitted by issuers of securities and conditions for considering equivalent the information required under the legislation of a non-Member State, the Management Board of the Parent Company declares that, to the best of its knowledge, these interim condensed consolidated financial statements and comparative data have been prepared in accordance with the accounting policies applicable in the CD PROJEKT Group and that they reflect in a true, fair and clear manner the Group’s financial position and its results of operations. These interim condensed consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as endorsed by the European Union published and effective as at 1 January 2025, and to the extent not governed by the said standards, in accordance with the Accounting Act of 29 September 1994 and the implementing legislation issued on the basis thereof and to the extent required by the Regulation of the Minister of Finance of 29 March 2018 on current and periodical information submitted by issuers of securities and conditions for considering equivalent the information required und er the legislation of a non-Member State.
Page 100
100 Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 January to 31 March 2025 (all amounts in PLN thousand, unless stated otherwise) The attached notes are an integral part of these financial statements. Approval of the financial statements This report for the period from 1 January to 31 March 2025 was signed and approved for publication by the Management Board of CD PROJEKT S.A. on 28 May 2025. Warsaw, 28 May 2025 Piotr Nielubowicz Adam Badowski Michał Nowakowski Member of the Management Board Member of the Management Board Member of the Management Board Piotr Karwowski Paweł Zawodny Jeremiah Cohn Member of the Management Board Member of the Management Board Member of the Management Board Krystyna Cybulska Chief Accountant
Page 101
101