Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

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.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

CD PROJEKT Group – selected financial highlights (converted into EUR)

PLN EUR

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Revenues from sales of products, services, goods and

materials

216 146 197 632 46 511 43 226

Cost of products, services, goods and materials sold 47 627 62 272 10 249 13 620

Operating profit (loss) 85 321 43 198 18 360 9 448

Profit (loss) before tax 91 893 37 051 19 774 8 104

Net profit (loss) attributable to equity holders of parent

entity

68 918 32 487 14 830 7 105

Net cash flows from operating activities 142 122 1 068 300 30 582 233 656

Net cash flows from investment activities 195 861 (81 915) 42 146 (17 916)

Net cash flows from financial activities (984) 1 442 (211) 315

Total net cash flows 336 999 987 827 72 517 216 055

Stock volume (thousands) 100 739 100 655 100 739 100 655

Net earnings per share (PLN/EUR) 0.68 0.32 0.15 0.07

Diluted net earnings per share (PLN/EUR) 0.68 0.32 0.15 0.07

Book value per share (PLN/EUR) 19.46 22.13 4.18 4.75

Diluted book value per share (PLN/EUR) 19.45 22.11 4.18 4.74

Declared or paid out dividend per share (PLN/EUR) 1.00 5.00 0.22 1.09

PLN EUR

31.03.2022 31.12.2021 31.03.2022 31.12.2021

Total assets 2 252 549 2 158 735 484 159 469 351

Liabilities and provisions for liabilities (less accrued

charges)

263 599 226 407 56 657 49 225

Long-term liabilities 37 825 36 112 8 130 7 851

Short-term liabilities 254 795 228 267 54 765 49 630

Equity 1 959 929 1 894 356 421 264 411 870

Share capital 100 739 100 739 21 653 21 903

The above financial data has been converted into EUR under the following assumptions:

 Elements of the consolidated profit and loss account and consolidated statement of cash flows were converted into EUR by

applying the arithmetic average of exchange rates for the final day of each month belonging to the reporting period, as

published by the National Bank of Poland. The corresponding exchange rates were: 4.6472 PLN/EUR for the period between

1 January and 31 March 2022, and 4.5721 PLN/EUR for the period between 1 January and 31 March 2021 respectively,

 Assets and liabilities listed in the consolidated statement of financial position were converted into EUR by applying the

exchange rate for the final day of the reporting period, as published by the National Bank of Poland. These exchange rates

were: 4.6525 PLN/EUR on 31 March 2022 and 4.5994 PLN/EUR on 31 December 2021 respectively.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Table of contents

Primary financial data of the CD PROJEKT Group .......................................................................................................................................................... 6

Condensed interim consolidated profit and loss account...................................................................................................................................... 7

Condensed interim consolidated statement of comprehensive income ........................................................................................................... 9

Condensed interim consolidated statement of financial position...................................................................................................................... 10

Condensed interim statement of changes in consolidated equity .................................................................................................................... 13

Condensed interim consolidated statement of cash flows .................................................................................................................................. 16

Clarifications regarding the condensed interim consolidated financial statement ............................................................................................. 19

General information......................................................................................................................................................................................................... 20

Structure of the Group .................................................................................................................................................................................................... 20

Consolidation principles ................................................................................................................................................................................................. 21

Entities subject to consolidation ............................................................................................................................................................................ 21

Subsidiaries .................................................................................................................................................................................................................. 21

Basis for the preparation of the condensed interim consolidated financial statement .............................................................................. 22

Assumption of going concern ...................................................................................................................................................................................... 22

Compliance with International Financial Reporting Standards .......................................................................................................................... 22

Changes in standards or interpretations in force and applied by the Group, which entered into force since

1 January 2022 ........................................................................................................................................................................................................... 22

Functional currency and presentation currency ..................................................................................................................................................... 23

Functional currency and presentation currency ...............................................................................................................................................23

Transactions and balances ......................................................................................................................................................................................23

Comparability of financial statements and changes in accounting policies .................................................................................................. 23

Changes in accounting policies .............................................................................................................................................................................24

Presentation changes ................................................................................................................................................................................................24

Financial audit ................................................................................................................................................................................................................... 24

Supplementary information – CD PROJEKT Group activity segments ................................................................................................................... 25

Activity segments ............................................................................................................................................................................................................. 26

Disclosure of activity segments .............................................................................................................................................................................. 27

Segmented consolidated profit and loss account for the period between 01.01.2022 and 31.03.2022 ....................................... 28

Segmented consolidated profit and loss account for the period between 01.01.2021 and 31.03.2021 .......................................... 29

Segmented consolidated statement of financial position as of 31.03.2022 ........................................................................................... 30

Segmented consolidated statement of financial position as of 31.12.2021* .............................................................................................32

Segmented consolidated statement of financial position as of 31.03.2021* ............................................................................................ 34

Disclosure of the issuer’s significant accomplishments and shortcomings in each activity segment in the first

quarter of 2022 ........................................................................................................................................................................................................... 37

Disclosure of factors which may affect the Group’s future results ..............................................................................................................38

Effect of the political and economic situation in Ukraine on sales in the reporting period ................................................................ 39

Disclosure of seasonal or cyclical activities ....................................................................................................................................................... 40

Disclosure of key clients ............................................................................................................................................................................................ 41

Supplementary information – additional notes and clarifications regarding the condensed interim consolidated

financial statement .................................................................................................................................................................................................................. 42

Note 1. Disclosure of circumstances affecting assets, liabilities, equity, net financial result and cash flows which

are unusual due to their type, size or effect ....................................................................................................................................................... 43

Note 2. Property, plant and equipment................................................................................................................................................................ 44

Nota 3. Intangibles and expenditures on development projects ................................................................................................................ 46

Note 4. Goodwill ......................................................................................................................................................................................................... 46

Note 5. Investment properties ............................................................................................................................................................................... 46

Note 6. Inventories .....................................................................................................................................................................................................48

Note 7. Trade and other receivables ....................................................................................................................................................................48

Note 8. Other financial assets ................................................................................................................................................................................ 50

Note 9. Deferrals ......................................................................................................................................................................................................... 51

Note 10. Deferred income tax ................................................................................................................................................................................ 52

Note 11. Provisions for employee benefits and similar liabilities ................................................................................................................. 54

Note 12. Other provisions ........................................................................................................................................................................................ 54

Note 13. Other liabilities ........................................................................................................................................................................................... 55

Note 14. Deferred revenues.................................................................................................................................................................................... 55

Note 15. Disclosure of financial instruments ...................................................................................................................................................... 56

Note 16. Sales revenues .......................................................................................................................................................................................... 58

Note 17. Operating expenses ................................................................................................................................................................................. 59

Note 18. Other operating revenues and expenses ......................................................................................................................................... 60

Note 19. Financial revenues and expenses ........................................................................................................................................................ 61

Note 20. Short-term lease agreements and lease of low-value assets ..................................................................................................... 61

Note 21. Issue, buyback and redemption of debt and capital securities .................................................................................................. 62

Note 22. Dividends declared or paid out and collected................................................................................................................................ 62

Note 23. Transactions with affiliates .................................................................................................................................................................... 62

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 24. Bad loans and credits, and breaches of loan and credit agreements not subject to remedial proceedings

as of the balance sheet date .................................................................................................................................................................................. 65

Note 25. Changes in conditional liabilities and assets since the close of the most recent financial year ..................................... 66

Note 26. Changes in the structure of the Group and its member entities occurring during the reporting period ...................... 68

Note 27. Agreements which may, in the future, result in changes in the proportion of shares held by shareholders

and bondholders ........................................................................................................................................................................................................ 68

Note 28. Fiscal settlements .................................................................................................................................................................................... 68

Note 29. Clarifications regarding the condensed interim consolidated cash flow statement ........................................................... 69

Note 30. Cash flows and other changes resulting from financial activities ............................................................................................... 71

Note 31. Events following the balance sheet date ............................................................................................................................................ 72

Supplementary information .................................................................................................................................................................................................. 73

Legal proceedings ...................................................................................................................................................................................................... 74

Shareholding structure ....................................................................................................................................................................................................74

Parent Company shares held by members of the Management Board and Supervisory Board ....................................................... 75

Validation of published projections ............................................................................................................................................................................ 75

Condensed interim separate financial statement of CD PROJEKT S.A. ................................................................................................................. 76

Condensed interim separate profit and loss account............................................................................................................................................ 77

Condensed interim separate statement of comprehensive income ................................................................................................................ 78

Condensed interim separate statement of financial position ............................................................................................................................ 78

Condensed interim statement of changes in separate equity ........................................................................................................................... 80

Condensed interim separate statement of cash flows ......................................................................................................................................... 83

Comparability of financial statements and changes in accounting policies .................................................................................................. 84

Presentation adjustments ........................................................................................................................................................................................ 85

Supplementary information concerning the separate financial statement of CD PROJEKT S.A. ............................................................ 86

A. Deferred income tax ....................................................................................................................................................................................... 86

B. Other provisions ................................................................................................................................................................................................ 87

C. Goodwill .............................................................................................................................................................................................................. 88

D. Business combinations .................................................................................................................................................................................. 88

E. Dividends paid out (or declared) and collected ...................................................................................................................................... 88

F. Trade and other receivables......................................................................................................................................................................... 88

G. Disclosure of financial instruments ............................................................................................................................................................ 90

H. Transactions with affiliates ........................................................................................................................................................................... 92

Statement of the Management Board of the parent entity ................................................................................................................................. 94

Approval of financial statement ................................................................................................................................................................................... 95

Primary financial data of the

CD PROJEKT Group

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Condensed interim consolidated profit and loss

account

Note

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Sales revenues 216 146 197 632

Revenues from sales of products 16 173 787 145 868

Revenues from sales of services 16 635 387

Revenues from sales of goods and materials 16 41 724 51 377

Cost of products, services, goods and materials sold 47 627 62 272

Cost of products and services sold 17 18 372 23 657

Cost of goods and materials sold 17 29 255 38 615

Gross profit (loss) from sales 168 519 135 360

Selling costs 17 60 606 62 077

General and administrative costs 17 20 017 30 112

Other operating revenues 18 2 590 1 789

Other operating expenses 18 5 163 1 756

(Impairment)/reversal of impairment of financial instruments (2) (6)

Operating profit (loss) 85 321 43 198

Financial revenues 19 16 791 10 062

Financial expenses 19 10 219 16 209

Profit (loss) before tax 91 893 37 051

Income tax 10 22 975 4 564

Net profit (loss) 68 918 32 487

Net profit (loss) attributable to equity holders of parent entity 68 918 32 487

Net earnings per share (in PLN) - -

Basic for the reporting period 0.68 0.32

Diluted for the reporting period 0.68 0.32

The aggregate value of the Group’s Sales revenues in the first quarter of 2022 was slightly higher than the record-breaking first

quarter of the previous year. This was accompanied by notable structural changes: an increase was noted in the share of revenues

from sale of own products (which generally carry higher profit margins compared to sales of goods obtained from external suppliers).

The main contribution to the CD PROJEKT Group’s revenues in this period came from Revenues from sales of products; primarily

the following:

a) licensing royalties associated with distribution of Cyberpunk 2077, whose next-gen release targeting Xbox Series X|S and

PlayStation 5 appeared in February 2022;

b) licensing royalties associated with continuing sales of The Witcher 3: Wild Hunt, along with its expansions – Hearts of Stone

and Blood and Wine;

c) revenues generated by GWENT: The Witcher Card Game;

d) licensing royalties associated with The Witcher 2: Assassins of Kings, The Witcher and Thronebreaker: The Witcher Tales,

along with CD PROJEKT RED’s franchises.

An important contribution came from Revenues from sales of goods and materials; mainly the following:

a) revenues from digital distribution of videogames licensed from external suppliers to final customers, carried out on the

GOG.COM platform;

b) CD PROJEKT S.A. revenues from sales of physical components of box editions of the Studio’s own games to distributors

(carrier media, packaging, etc.);

c) revenues from sales of tie-in products and merchandise related to CD PROJEKT RED’s games and brands, carried out by the

CD PROJEKT RED GEAR online storefront (https://gear.cdprojektred.com

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

The reported decrease in this category of revenues is mainly due to lower sales in the GOG.COM segment compared to the

reference period, i.e. the first quarter following the release of Cyberpunk 2077.

The Cost of products and services sold encompasses mainly depreciation of development expenses related to CD PROJEKT RED’s

games. The reported decrease compared to the reference period is mainly due to full depreciation of past GWENT development

expenses.

In line with the accounting policies in force at the Group expenditures on development projects for which a reliable estimate of the

quantity and volume of sales budgets can be provided, are depreciated in proportion to the projected consumption of economic

benefits, which depends on the number of copies sold. For other projects, the Group recognizes depreciation using the straight-

line method.

For projects whose development costs were subject to depreciation in the first quarter of 2022 the following rules apply:

 40% of Cyberpunk 2077 development expenditures was recognized as costs in 2020, in the release quarter, while the

remaining 60% will be depreciated throughout a five-year economic use period, at 3% per quarter;

 Development expenditures related to the next-gen update of Cyberpunk 2077 for Xbox Series X|S and PlayStation 5 are

depreciated using the straight-line method between the release date and the end of depreciation of development expenditures

related to the base game;

 Development expenditures related to Thronebreaker: The Witcher Tales (released in October 2018), along with its releases for

other platforms, will be depreciated until the end of September 2022 based on the expected breakdown of future revenues,

projected on the basis of sales data for past projects;

 Development expenditures related to The Witcher 3: Wild Hunt for Nintendo Switch (released in October 2019) are depreciated

over a three-year period following the end of development and the game’s release, based on the expected breakdown of future

revenues, projected on the basis of sales data for past projects.

The Cost of goods and materials sold corresponds mainly to the cost of goods distributed via the GOG.COM platform, own cost of

sales carried out on GOG.COM, cost of physical components of games sold, and – to a lesser degree – costs related to sales of

goods to final customers carried out by the CD PROJEKT RED GEAR merch store.

In the first quarter of 2022 the main contribution to Selling costs came from publishing, marketing and promotional activities related

to the Group’s own products, carried out in the CD PROJEKT RED segment, including remuneration (both fixed and dependent on

the Group’s earnings) of internal publishing teams, earnings-dependent remuneration of board members at the Group’s member

companies, and expenses related to bought-in sales support services. Promotional expenses increased in comparison with the

reference period due to the release of Cyberpunk 2077 for next-gen consoles – Xbox Series X|S and PlayStation 5.

Another major contribution to selling costs came from maintenance of support of past releases. In the reporting period this

concerned mainly support for Cyberpunk 2077, along with maintenance and further development of GWENT: The Witcher Card

Game. Maintenance costs decreased significantly comparted to the first quarter of 2021, mainly due to lower expenditures on

Cyberpunk 2077 patches and updates.

Furthermore, this category aggregates selling costs generated by marketing activities related to the GOG.COM platform (in the

GOG.COM segment), and work on further development and support for sales carried out on this platform.

General and administrative expenses at the CD PROJEKT Group comprise mainly:

a) fixed and result-dependent remuneration of administrative teams and external support costs which qualify for this category –

these continue to increase in step with the Group’s overall expansion;

b) costs related to future videogame projects during their early (exploratory) phase, before actual development begins (at which

point further costs are capitalized as Expenditures on development projects in the Fixed assets category);

c) fixed remuneration of board members at the Group’s member companies;

d) estimation of entitlements assigned under the 2020-2025 incentive program – due to a negative outlook regarding the

Company’s ability to meet its stated earnings goals throughout the full duration of the program, as declared by the

Management Board at the end of 2021, this estimation was lower than during the reference period.

Regarding Other operating revenues and expenses, during the reporting period CD PROJEKT obtained revenues from subleasing

of office space at Jagiellońska 74 and 76 in Warsaw (along with the offsetting maintenance costs). Several one-time cost items were

also reported: this includes disposal of inventories (2 301 thousand PLN) and donations (1 097 thousand PLN, including mainly

support for the Polish Humanitarian Action in light of the events in Ukraine).

For the period between 1 January and 31 March 2022 the Group reported a surplus of Financial revenues over Financial expenses,

mainly due to increased revenues from interest due to the global increase in interest rates.

The Income tax reported in the P&L statement for Q1 2022, along with the effective tax rate, increased substantially compared to

Q1 2021. This was caused by aggregation with this line item of certain taxes levied in other jurisdictions on licensing royalties

remitted to the Group (withholding tax).

Following collection of documents confirming the amount of withholding tax, and confirmation that it has been paid, the Group

recognized a write-down on the amount of its income tax to which the IP Box preference applies, and aggregates the surplus with

its profit and loss account.

The Group’s consolidated Net profit for the first quarter of 2022 was 68 918 thousand PLN – 112.1% higher than in the reference

period in 2021.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Condensed interim consolidated statement of

comprehensive income

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Net profit/(loss) 68 918 32 487

Other comprehensive income which will be entered as profit (loss) following

fulfillment of specific criteria

(4 493) 282

Exchange rate differences from valuation of foreign entities 437 98

Estimation of financial instruments at fair value through other comprehensive income,

adjusted for tax effects

(4 930) 184

Other comprehensive income which will not be entered as profit (loss) - -

Total comprehensive income 64 425 32 769

Total comprehensive income attributable to minority interests - -

Total comprehensive income attributable to equity holders of CD PROJEKT S.A. 64 425 32 769

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Condensed interim consolidated statement of financial

position

Note 31.03.2022 31.12.2021* 31.03.2021*

FIXED ASSETS 940 816 905 846 904 556

Property, plant and equipment 2 124 261 119 588 113 088

Intangibles 3 68 222 58 393 59 126

Expenditures on development projects 3 367 005 350 195 388 833

Investment properties 5 44 318 44 634 45 248

Goodwill 3,4 56 438 56 438 56 438

Shares in subsidiaries excluded from consolidation 39 240 38 520 8 234

Deferrals 9 14 319 11 434 11 860

Other financial assets 8,15 176 456 178 540 150 554

Deferred income tax assets 10 50 179 47 418 70 836

Other receivables 7,15 378 686 339

WORKING ASSETS 1 311 733 1 252 889 1 982 501

Inventories 6 14 970 15 886 15 902

Trade receivables 7,15 68 422 125 293 52 175

Current income tax receivables 401 98 -

Other receivables 7 113 206 113 498 132 272

Deferrals 9 18 931 13 763 10 827

Other financial assets 8,15 261 828 307 765 220 090

Bank deposits (maturity beyond 3 months) 15 85 390 265 000 73

Cash and cash equivalents 15 748 585 411 586 1 551 162

TOTAL ASSETS 2 252 549 2 158 735 2 887 057

* adjusted

The main contribution to the Group’s fixed assets as of the end of Q1 2022, as well as the main contribution to the reported increase,

was from Expenditures on development projects, which correspond to development of new games and technologies, subject to

progressive depreciation. The reported increase over the reference period is due to a surplus of development expenses related to

CD PROJEKT RED’s future releases over the depreciation of development expenses related to finished products.

The Group also reported an increase in the value of Intangibles due to its investments in new game development technologies in

the CD PROJEKT RED segment, as well as an increase in the balance of Property, plant and equipment due to ongoing

expenditures on construction work at the CD PROJEKT campus in Warsaw (PP&E under construction), along with an extension of

the lease contract concerning one of its branch offices.

At the end of the reporting period, the increased value of short- and long-term Deferrals was mostly due to conclusion of new

distribution contracts in the GOG.COM segment and recognition of the corresponding minimum guarantees, i.e. prepayments and

advances payable by GOG.COM to its suppliers in association with licensing royalties for games distributed on the GOG.COM

platform.

The Group’s Other receivables at the end of March 2022 concerned mainly tax receivables and advance payments remitted by

CD PROJEKT RED in relation to development projects along with procurement of goods and services.

The reported increase in the balance of Working assets at the Group’s member companies is mainly due to an increase in Cash

and cash equivalents resulting in large part from a reduction in Trade receivables (collection of licensing royalties in the

CD PROJEKT RED segment), Bank deposits (maturity beyond 3 months) and Other financial assets which comprise mainly

T- bonds purchased by CD PROJEKT S.A. in the framework of diversifying its credit risk related to monetary assets.

As of 31 March 2022, the aggregate value of Cash and cash equivalents, Bank deposits (maturity beyond 3 months) and other

liquid financial assets. i.e. treasury bonds (recognized as short- and long-term Other financial assets) was 1 261 582 thousand PLN,

i.e. 107 581 thousand PLN more than at the end of 2021 (9.3% increase).

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 31.03.2022 31.12.2021 31.03.2021

EQUITY 1 959 929 1 894 356 2 227 530

Parent entity shareholders’ equity 1 959 929 1 894 356 2 227 530

Share capital 21 100 739 100 739 100 739

Supplementary capital 1 425 647 1 425 647 775 720

Supplementary capital from sale of shares above

nominal value

115 909 115 909 115 909

Other reserve capital 44 212 47 994 54 297

Exchange rate differences 2 028 1 591 1 189

Retained earnings 202 476 (6 432) 1 147 189

Net profit (loss) for the reporting period 68 918 208 908 32 487

Minority interest equity - - -

LONG-TERM LIABILITIES 37 825 36 112 19 893

Other financial liabilities 15 23 309 21 080 15 422

Other liabilities 13 2 800 2 860 3 113

Deferred revenues 14 5 968 6 424 960

Provisions for employee benefits and similar liabilities 11 380 380 398

Other provisions 12 5 368 5 368 -

SHORT-TERM LIABILITIES 254 795 228 267 639 634

Other financial liabilities 15 33 327 25 802 7 988

Trade liabilities 15 71 272 53 380 133 560

Current income tax liabilities 31 589 24 446 67 750

Other liabilities 13 9 132 10 042 8 486

Deferred revenues 14 23 053 31 548 41 477

Provisions for employee benefits and similar liabilities 11 7 7 4

Other provisions 12 86 415 83 042 380 369

TOTAL EQUITY AND LIABILITIES 2 252 549 2 158 735 2 887 057

At the end of the first quarter of 2022 the CD PROJEKT Group’s Equity amounted to 1 959 929 thousand PLN, having increased by

65 573 thousand PLN compared to the 2021 yearend figure, mainly due to Net profit for the reporting period.

The reported increase in Long-term liabilities was primarily due to recognition (as Other financial liabilities) of lease liabilities

resulting from extension of the lease contract concerning one of the Group’s branch offices.

The Group’s consolidated Other financial liabilities increased in the first quarter of 2022, mostly due to updated estimation of

exchange rate hedges related to:

 ownership of foreign treasury bonds denominated in foreign currencies (in the CD PROJEKT RED segment),

 current liabilities in the GOG.COM segment.

The reported increase in the Group’s Trade liabilities is associated with activities carried out in the CD PROJEKT RED segment. In

addition, this line item also aggregates licensing royalties payable in the GOG.COM segment in relation to sales carried out in the

first quarter of 2022.

Other liabilities for the reporting period comprise mainly tax liabilities (VAT, PIT, withholding tax) and social security payments.

The balance of Deferred revenues at the end of March 2022 comprise mainly the following:

 CD PROJEKT RED – future period sales, i.e. minimum guarantees – licensing royalties remitted or receivable by the Company

from its publishers and distribution partners in relation to future period sales;

 CD PROJEKT RED and GOG.COM – deferrals related to subsidies;

 GOG.COM – deferrals related to settlements with the Company’s clients (including store credit and Wallet contributions);

 GOG.COM – future period sales – preorders of games scheduled for release in future reporting periods.

The reported reduction during Q1 2022 was mainly due to settlement of minimum guarantees related to Cyberpunk 2077 (in the

CD PROJEKT RED segment).

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Changes in Other provisions held by the CD PROJEKT Group in the first quarter of 2022 concerned mainly CD PROJEKT RED and

involved the following:

 creation of provisions for remuneration dependent on current-period earnings, which increased the balance of Other provisions;

 surplus of consumed provisions for other costs over newly created provisions, which reduced the balance of Other provisions.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Condensed interim statement of changes in consolidated equity

Share capital

Supplementary

capital

Supplementary

capital from

sale of shares

above nominal

value

Other reserve

capital

Exchange rate

differences

Retained

earnings

Net profit

(loss) for the

reporting

period

Parent entity

shareholders’

equity

Total equity

01.01.2022 – 31.03.2022

Equity as of 01.01.2022 100 739 1 425 647 115 909 47 994 1 591 202 476 - 1 894 356 1 894 356

Cost of incentive

program

- - - 1 148 - - - 1 148 1 148

Total comprehensive

income

- - - (4 930) 437 - 68 918 64 425 64 425

Equity as of 31.03.2022 100 739 1 425 647 115 909 44 212 2 028 202 476 68 918 1 959 929 1 959 929

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Share capital

Supplementary

capital

Supplementary

capital from

sale of shares

above nominal

value

Other reserve

capital

Exchange rate

differences

Retained

earnings

Net profit

(loss) for the

reporting

period

Parent entity

shareholders’

equity

Total equity

01.01.2021 – 31.12.2021

Equity as of 01.01.2021 100 655 774 851 113 844 45 547 1 091 1 151 368 - 2 187 356 2 187 356

Rectification of errors - - - - - (4 179) - (4 179) (4 179)

Adjusted equity

100 655 774 851 113 844 45 547 1 091 1 147 189 - 2 183 177 2 183 177

Cost of incentive

program

- - - (1 026) - - - (1 026) (1 026)

Payment in own

84 869 2 065 (869) - - - 2 149 2 149

Dividend payment - - - - - (503 694) - (503 694) (503 694)

Allocation of net

profit/ coverage of

losses

- 649 927 - - - (649 927) - - -

Total comprehensive

income

- - - 4 342 500 - 208 908 213 750 213 750

Equity as of 31.12.2021 100 739 1 425 647 115 909 47 994 1 591 (6 432) 208 908 1 894 356 1 894 356

The Group rectified its calculation of deferred tax assets on 31 December 2020 by reclassifying some negative temporary differences from the 19% tax rate category to the 5% tax rate category. As

a result, the Group’s Equity decreased by 4 179 thousand PLN.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Share capital

Supplementary

capital

Supplementary

capital from

sale of shares

above nominal

value

Other reserve

capital

Exchange rate

differences

Retained

earnings

Net profit

(loss) for the

reporting

period

Parent entity

shareholders’

equity

Total equity

01.01.2021 – 31.03.2021

Equity as of 01.01.2021 100 655 774 851 113 844 45 547 1 091 1 151 368 - 2 187 356 2 187 356

Rectification of errors - - - - - (4 179) - (4 179) (4 179)

Adjusted equity 100 655 774 851 113 844 45 547 1 091 1 147 189 - 2 183 177 2 183 177

Cost of incentive

program

- - - 9 435 - - - 9 435 9 435

Payment in own

84 869 2 065 (869) - - - 2 149 2 149

Total comprehensive

income

- - - 184 98 - 32 487 32 769 32 769

Equity as of 31.03.2021 100 739 775 720 115 909 54 297 1 189 1 147 189 32 487 2 227 530 2 227 530

The Group rectified its calculation of deferred tax assets on 31 December 2020 by reclassifying some negative temporary differences from the 19% tax rate category to the 5% tax rate category. As

a result, the Group’s Equity decreased by 4 179 thousand PLN.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Condensed interim consolidated statement of cash

flows

Note

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021*

OPERATING ACTIVITIES

Net profit (loss) 68 918 32 487

Total adjustments: 29 53 442 1 029 681

Depreciation of PP&E, intangibles, expenditures on development

projects and investment properties

3 894 4 490

Depreciation of expenditures on development projects recognized as

cost of products and services sold

18 020 23 319

Profit (loss) from exchange rate differences (1 359) (8 975)

Interest and profit sharing (7 427) 32

Profit (loss) from investment activities (434) 12 215

Change in provisions (4 176) (81 400)

Change in inventories 916 (8 945)

Change in receivables 43 740 1 091 367

Change in liabilities excluding credits and loans 15 515 (7 824)

Change in other assets and liabilities (17 064) (3 968)

Other adjustments 1 817 9 370

Cash flows from operating activities 122 360 1 062 168

Income tax on pre-tax profit (loss) 7 302 4 561

Withholding tax paid abroad 15 673 3

Income tax (paid)/reimbursed (3 213) 1 568

Net cash flows from operating activities 142 122 1 068 300

INVESTMENT ACTIVITIES

Inflows 325 840 197 525

Sales of PP&E and intangibles 7 -

Closing bank deposits (maturity beyond 3 months) 265 000 164 368

Maturation of bonds 58 132 33 097

Interest from bonds 291 -

Interest from bank deposits 2 364 40

Other inflows from investment activities 46 20

Outflows 129 979 279 440

Purchases of intangibles and PP&E 15 212 7 218

Expenditures on development projects 27 697 29 126

Purchase of investment properties and activation of costs 89 41

Loans granted 1 500 1 540

Purchase of bonds and the associated purchase fees 91 241 442

Opening bank deposits (maturity beyond 3 months) 85 390 73

Net cash flows from investment activities 195 861 (81 915)

adjusted

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021*

FINANCIAL ACTIVITIES

Inflows 10 2 159

Net inflows from sale and issue of shares in the exercise of rights

assigned under the incentive program

- 2 149

Collection of receivables arising from financial lease agreements 10 10

Outflows 994 717

Payment of liabilities arising from lease agreements 863 673

Interest payments 131 44

Net cash flows from financial activities (984) 1 442

Total net cash flows 336 999 987 827

Balance of changes in cash and cash equivalents 336 999 987 827

Cash and cash equivalents at beginning of period 411 586 563 335

Cash and cash equivalents at end of period 748 585 1 551 162

* adjusted

In the first quarter of 2022 the CD PROJEKT Group reported 142 122 thousand PLN in positive Net cash flows from operating

activities, which is 926 178 thousand PLN less than in the reference period. It should, however, be noted that the reference period

was unusual in that it coincided with collection of record-breaking receivables payable to CD PROJEKT S.A. in the aftermath of the

release of Cyberpunk 2077.

The consolidated base net earnings were subject to the following adjustments:

a) Non-cash items (aggregate increase):

 Depreciation,

 Depreciation of development projects recognized as cost of products and services sold, mainly depreciation of

development costs related to Cyberpunk 2077, together with its next-gen release for Xbox Series X|S and

PlayStation 5, Thronebreaker: The Witcher Tales and The Witcher 3: Wild Hunt - Complete Edition for Nintendo

Switch,

 Profit (loss) from exchange rate differences – reduction resulting from deduction of exchange rate differences

recognized in the P&L account from estimation of foreign treasury bonds held by the CD PROJEKT RED segment,

 Change in provisions – reduction caused by surplus of newly created provisions for remuneration dependent on

earnings, aggregated with expenditures on development projects, over the change in the balance of provisions for

other liabilities,

 Other adjustments – increase caused mainly by elimination of settlements related to the incentive program.

b) Items related to changes in working assets and short-term liabilities (aggregate increase):

 Change in inventories – increased balance of cash flows resulting from reduction in inventories,

 Change in receivables – increased balance of cash flows resulting primarily from a reduction in the balance of

receivables at the end of Q1 2022 as a result of collection of licensing royalties previously reported in Q4 2021,

along with settlement of withholding tax paid abroad by CD PROJEKT RED clients,

 Change in liabilities excluding credits and loans – increased balance of cash flows resulting from an increase in

the balance of the Group’s liabilities,

 Change in other assets and liabilities – reduction in the balance of cash flows mainly due to settlement of minimum

guarantees previously collected in the CD PROJEKT RED segment, along with recognition of new minimum

guarantees contractually agreed upon with suppliers in the GOG.COM segment.

c) Two line items recognized elsewhere in the cash flow statement: Interest and profit sharing, which caused a reduction

in cash flows from operating activities, and Profit (loss) from investment activities – reduction resulting from transactions

involving bonds and derivative financial instruments.

d) Difference between the value of income tax reported in the profit and loss account and income tax actually paid in the

first quarter of 2022, including withholding tax settlements.

The main contribution to Net cash flows from investment activities in the first quarter of 2022 came from inflows resulting from a

decrease in the balance of bank deposits with maturity periods longer than 3 months, along with sale of some treasury bonds held

by the CD PROJEKT RED segment, which outweighed investments in new assets (Expenditures on development projects and

Purchases of intangibles and PP&E).

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

The CD PROJEKT Group did not generate appreciable Net cash flows from financial activities in the first quarter of 2022.

The aggregate balance of Net cash flows for the first quarter of 2022 was 336 999 thousand PLN.

Clarifications regarding the

condensed interim consolidated

financial statement

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

General information

Name of reporting entity:

CD PROJEKT S.A.

(no changes in the name of the reporting entity occurred since the close of the

previous reporting period)

Legal status: Joint-stock company

Headquarters: Jagiellońska 74, 03-301 Warsaw

Country of registration: Poland

Principal scope of activity:

CD PROJEKT S.A. is the holding company of the CD PROJEKT Group which

conducts its operations in two activity segments: CD PROJEKT RED

and GOG.COM

Principal place of business: Warsaw

Keeper of records:

District Court for the City of Warsaw in Warsaw – Poland; 14th Commercial

Department of the National Court Register (Sąd Rejonowy dla m.st. Warszawy

w Warszawie, XIV Wydział Gospodarczy Krajowego Rejestru Sądowego)

Statistical identification number (REGON): 492707333

Tax identification number (NIP): 7342867148

Waste disposal database (BDO) number:

000141053

Duration of the Group: Indefinite

Name of parent entity: CD PROJEKT S.A.

Name of ultimate parent entity of the

Group

CD PROJEKT S.A.

Structure of the Group

Affiliates

CD PROJEKT S.A.

GOG

sp. z o.o.

CD PROJEKT

Inc.

The

Molasses

Flood LLC

CD PROJEKT

Co., Ltd.

(undergoing

liquidation)

Spokko

sp. z o.o.

CD PROJEKT

RED STORE

sp. z o.o.

CD PROJEKT

RED

Vancouver

Studio Ltd.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Consolidation principles

Entities subject to consolidation

capital share voting share consolidation method

CD PROJEKT S.A. parent company - -

GOG sp. z o.o. 100% 100% full

CD PROJEKT Inc. 100% 100% full

CD PROJEKT Co., Ltd. (undergoing

liquidation)

100% 100%

excluded from

consolidation

Spokko sp. z o.o. 74% 74%

excluded from

consolidation

CD PROJEKT RED STORE sp. z o.o. 100% 100% full

CD PROJEKT RED Vancouver Studio Ltd. 100% 100%

excluded from

consolidation

The Molasses Flood LLC 60% 60%

excluded from

consolidation

In accordance with the accounting policies in force within the Group, the parent entity may elect to exclude certain subsidiaries

from consolidation as long as each of these subsidiaries:

 contributes not more than 2% to the parent entity’s balance sheet total,

 contributes not more than 1% to the parent entity’s aggregate sales and financial revenues.

Note that the above values are exclusive of any transactions between the subsidiary and the parent company which would have

otherwise been subject to consolidation eliminations.

In addition to the above, all subsidiaries excluded from consolidation must jointly:

 contribute not more than 5% to the parent entity’s balance sheet total,

 contribute not more than 2% to the parent entity’s aggregate sales and financial revenues.

The above values are also exclusive of any transactions between each subsidiary and the parent company which would have

otherwise been subject to consolidation eliminations.

Subsidiaries

Subsidiaries are defined as all entities which fall under the Group’s control. An entity is considered to fall under the Group’s control

if all of the following criteria are met:

 executive control, i.e. possession of the required legal title to direct the entity’s significant operations (operations, which

significantly affect the entity’s financial standing),

 exposure to variation in the entity’s financial results, or possession of the required legal title to adjust the Group’s financial

results in relation to the entity’s own financial results,

 possession of the required administrative apparatus to affect the Group’s own financial results by exercising the right to affect

financial results attributable to the Group by leveraging the Group’s involvement in the entity.

Subsidiaries which meet materiality criteria are subject to full consolidation from the date of acquisition of control by the Group and

cease to be reported as such on the day control is lost.

Any revenues, expenses, settlements and unrealized gains on transactions between companies belonging to the Group are

eliminated in full. Unrealized losses are also eliminated unless the nature of the transaction indicates impairment of any of the

transferred assets. Accounting practices in use at subsidiary companies are adjusted whenever necessary to ensure compliance

with accounting practices adopted by the Group.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Basis for the preparation of the condensed interim

consolidated financial statement

This condensed interim consolidated financial statement is prepared in compliance with International Accounting Standard 34

(IAS 34) Interim financial reporting, approved for use within the EU.

The condensed interim consolidated financial statement does not contain all the information and disclosures which would otherwise

be required in an annual financial statement. Accordingly, this statement should be read in conjunction with the Consolidated

Financial Statement of the CD PROJEKT Group for the year ending 31 December 2021, approved for publication on 14 April 2022.

Assumption of going concern

This condensed interim consolidated financial statement is prepared under the assumption that the Group and its parent entity

intend to continue as a going concern in the foreseeable future, i.e. at least throughout the 12-month period following the balance

sheet date.

As of the date of signing this financial statement the Management Board of the parent entity is not aware of any facts or

circumstances which would jeopardize the assumption of going concern within said 12-month period by way of intended or forced

cessation or significant reduction of continuing operations.

As of the day of preparation of this consolidated financial statement covering the period between 1 January and 31 March 2022 the

Management Board is not aware of any events which should have been reflected in the accounts for that period but have not been

reflected therein. Additionally, no important events related to the preceding years were included in this statement.

Compliance with International Financial Reporting

Standards

This condensed interim consolidated financial statement conforms to International Accounting Standard (IAS) 34, Interim Financial

Reporting, as well as to International Financial Reporting Standards (IFRS) applicable to interim financial reporting, endorsed by the

International Accounting Standard Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC), valid

for 31 March 2022.

The Group intends to apply amendments to IFRS which have been published but have not yet entered into force on the publication

date of this condensed interim consolidated financial statement, depending on their date of entry into force. Information regarding

standards and interpretations applied for the first time, early application of new standards, standards which have entered into force

on or after 1 January 2022 and the effect of changes in IFRS upon the Group’s future financial statements is provided in Section 2

of the Group’s Consolidated Financial Statement for 2021.

Changes in standards or interpretations in force and applied by the Group,

which entered into force since 1 January 2022

 Amendments to IFRS 3 Business combinations, IAS 16 Property, plant and equipment, IAS 37 Provisions, contingent liabilities

and contingent assets, and amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41 introduced in the annual IFRS improvement cycle

(2018-2020) – approved on 31 August 2021 and applicable to reporting periods beginning on or after 1 January 2022.

These amendments have no significant impact on the Group’s accounting practices as relates to the Group’s activities or its financial

result.

Standards published and approved by the EU, which have not yet entered into force, and their effect

on the Group’s financial statement

The Management Board performed an assessment of the effect of application of new standards upon future financial statements.

In approving this financial statement, the Group did not apply the following standards, amendments to existing standards and

interpretations which had been published and approved for use in the EU but which had not yet entered into force:

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

 MSSF 17 Insurance contracts – approved on 23 November 2021 and applicable to reporting periods beginning on or after

1 January 2023,

 Amendments to IAS 1 and Practice Statement 2: Disclosure of accounting policies (published on 12 February 2021) – approved

on 3 March 2022 and applicable to reporting periods beginning on or after 1 January 2023,

 Amendments to IAS 8 Accounting policies, changes in accounting estimates and errors – approved on 3 March 2022 and

applicable to reporting periods beginning on or after 1 January 2023,

The Group does not anticipate a significant effect of these changes upon the Group’s accounting practices as relates to the Group’s

activities or its financial result.

Standards and interpretations adopted by the IASB which have not yet been approved by the EU

In approving this financial statement the Group did not apply the following standards, amendments and interpretations which have

not yet been approved for use in the EU:

 Amendments to IAS 1 Presentation of financial statements: classification of liabilities as current or non-current - applicable to

reporting periods beginning on or after 1 January 2023,

 Amendments to IAS 12 Income taxes: deferred tax related to assets and liabilities arising from a single transaction - applicable

to reporting periods beginning on or after 1 January 2023,

 MSSF 17 Insurance contracts – initial application of IFRS 17 and IFRS 9 - applicable to reporting periods beginning on or after

1 January 2023,

The Group is performing an assessment of the effect these new standards and amendments to standards upon the Group’s financial

statement.

Functional currency and presentation currency

Figures reported in this financial statement are denominated in the currency of the primary economic environment in which the

Group carries outs its activities (functional currency). The functional currency and the presentation currency of the Group and its

parent Company is the Polish Zloty (PLN). All presented data are reported in thousand PLN.

Transactions and balances

Transactions denominated in foreign currencies are converted to the functional currency according to the exchange rate on the

date of the transaction. Exchange rate losses and gains on settlement of transactions and on valuation of assets and liabilities

denominated in foreign currencies are reported in the profit and loss statement, unless deferred in Equity capital when they

constitute cash flow hedges or hedges of shares in net assets.

Comparability of financial statements and changes in

accounting policies

The accounting practices applied in preparing this condensed interim consolidated financial statement, the Management Board’s

professional judgment concerning the Group’s accounting practices as well as the main sources of uncertainty in estimations are

in all material aspects consistent with the practices applied in preparing the Consolidated Financial Statement of the CD PROJEKT

Group for 2021, except for changes in accounting policies and presentation-related adjustments described below. This condensed

interim consolidated financial statement should be read in conjunction with the consolidated financial statement for the period

ending 31 December 2021.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Changes in accounting policies

The accounting practices applied in preparing this condensed interim consolidated financial statement, the Management Board’s

professional judgment concerning the Group’s accounting practices as well as the main sources of uncertainty in estimations are

in all material aspects consistent with the practices applied in preparing the Consolidated Financial Statement of the CD PROJEKT

Group for 2021, except for changes in accounting policies, changes related to companies which are subject to consolidation, and

presentation-related adjustments described below.

Presentation changes

This condensed interim consolidated financial statement for the period between 1 January and 31 March 2022 includes changes in

the presentation of certain financial data. In order to ensure comparability of financial data, adjustments were also introduced with

respect to reference data for 31 March 2021 and 31 December 2021. The following adjustments were made:

 In the statement of cash flows for the period between 1 January and 31 March 2021, the presentation of interest from bank

deposits was adjusted as follows:

- Other inflows from investment activities – adjusted by (40) thousand PLN

- Interest from bank deposits – adjusted by 40 thousand PLN

 In the statement of financial position for 31 December 2021 and 31 March 2021 the presentation of some of the land holdings

belonging to the Group was adjusted as follows:

- Property, plant and equipment – adjusted by 4 354 thousand PLN

- Investment properties – adjusted by (4 354) thousand PLN

These changes had no effect on the Group’s financial result or equity.

Financial audit

This condensed interim consolidated financial statement with selected elements of the condensed interim separate financial

statement has not been subjected to a formal audit or review by an independent licensed auditor.

Supplementary information –

CD PROJEKT Group activity

segments

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Activity segments

Presentation of results by activity segment

The scope of financial disclosures in relation to each of the Group’s activity segments is regulated by IFRS 8. For each segment

the result is based on net profit.

Description of changes in the differentiation of activity segments, or of the assessment of per-

segment profit or loss compared to the most recent annual consolidated financial statement

No changes in the differentiation of activity segments, or in the assessment of per-segment profit or loss, occurred in this statement

as compared to the Group’s financial statement for the year ending on 31 December 2021.

There are no differences in the scope of assessment of assets, liabilities, profits and losses within each activity segment of the

Group.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Disclosure of activity segments

Continuing operations

Consolidation eliminations

Total (continuing

operations)

CD PROJEKT RED GOG.COM

01.01.2022 – 31.03.2022

Sales revenues 179 349 40 387 (3 590) 216 146

sales to external clients 175 827 40 319 - 216 146

sales between segments 3 522 68 (3 590) -

Segment net profit (loss) 68 849 152 (83) 68 918

Continuing operations

Consolidation eliminations

Total (continuing

operations)

CD PROJEKT RED GOG.COM

01.01.2021 – 31.03.2021

Sales revenues 148 523 53 835 (4 726) 197 632

sales to external clients 143 865 53 767 - 197 632

sales between segments 4 658 68 (4 726) -

Segment net profit (loss) 34 363 (1 883) 7 32 487

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Segmented consolidated profit and loss account for the period between 01.01.2022 and 31.03.2022

CD PROJEKT RED GOG.COM Consolidation eliminations Total

Sales revenues 179 349 40 387 (3 590) 216 146

Revenues from sales of products 172 416 - 1 371 173 787

Revenues from sales of services 1 017 68 (450) 635

Revenues from sales of goods and materials 5 916 40 319 (4 511) 41 724

Cost of products, services, goods and materials sold 22 063 28 768 (3 204) 47 627

Cost of products and services sold 18 416 21 (65) 18 372

Cost of goods and materials sold 3 647 28 747 (3 139) 29 255

Gross profit (loss) from sales 157 286 11 619 (386) 168 519

Selling costs 50 429 10 308 (131) 60 606

General and administrative costs 18 527 1 538 (48) 20 017

Other operating revenues 2 694 1 030 (1 134) 2 590

Other operating expenses 5 603 794 (1 234) 5 163

(Impairment)/reversal of impairment of financial instruments (2) - - (2)

Operating profit (loss) 85 419 9 (107) 85 321

Financial revenues 14 597 2 194 - 16 791

Financial expenses 8 203 2 042 (26) 10 219

Profit (loss) before taxation 91 813 161 (81) 91 893

Income tax 22 964 9 2 22 975

Net profit (loss) 68 849 152 (83) 68 918

Net profit (loss) attributable to equity holders of parent entity 68 849 152 (83) 68 918

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Segmented consolidated profit and loss account for the period between 01.01.2021 and 31.03.2021

CD PROJEKT RED GOG.COM Consolidation eliminations Total

Sales revenues 148 523 53 835 (4 726) 197 632

Revenues from sales of products 142 067 2 044 1 757 145 868

Revenues from sales of services 992 68 (673) 387

Revenues from sales of goods and materials 5 464 51 723 (5 810) 51 377

Cost of products, services, goods and materials sold 27 888 38 889 (4 505) 62 272

Cost of products and services sold 22 670 1 439 (452) 23 657

Cost of goods and materials sold 5 218 37 450 (4 053) 38 615

Gross profit (loss) from sales 120 635 14 946 (221) 135 360

Selling costs 47 709 14 526 (158) 62 077

General and administrative costs 28 063 2 122 (73) 30 112

Other operating revenues 2 098 269 (578) 1 789

Other operating expenses 2 058 252 (554) 1 756

(Impairment)/reversal of impairment of financial instruments (6) - - (6)

Operating profit (loss) 44 897 (1 685) (14) 43 198

Financial revenues 7 478 2 584 - 10 062

Financial expenses 13 167 3 064 (22) 16 209

Profit (loss) before taxation 39 208 (2 165) 8 37 051

Income tax 4 845 (282) 1 4 564

Net profit (loss) 34 363 (1 883) 7 32 487

Net profit (loss) attributable to equity holders of parent entity 34 363 (1 883) 7 32 487

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Segmented consolidated statement of financial position as of 31.03.2022

CD PROJEKT RED GOG.COM Consolidation eliminations Total

FIXED ASSETS 939 507 19 752 (18 443) 940 816

Property, plant and equipment 110 102 5 235 8 924 124 261

Intangibles 68 212 10 - 68 222

Expenditures on development projects 364 998 2 020 (13) 367 005

Investment properties 56 630 - (12 312) 44 318

Goodwill 56 438 - - 56 438

Investments in subsidiaries 15 036 - (15 036) -

Shares in subsidiaries excluded from consolidation 39 240 - - 39 240

Deferrals 5 346 8 973 - 14 319

Other financial assets 176 456 - - 176 456

Deferred income tax assets 46 671 3 514 (6) 50 179

Other receivables 378 - - 378

WORKING ASSETS 1 241 251 74 236 (3 754) 1 311 733

Inventories 14 970 - - 14 970

Trade receivables 68 869 3 307 (3 754) 68 422

Current income tax receivables 101 300 - 401

Other receivables 111 556 1 650 - 113 206

Deferrals 5 436 13 495 - 18 931

Other financial assets 261 591 237 - 261 828

Bank deposits (maturity beyond 3 months) 85 390 - - 85 390

Cash and cash equivalents 693 338 55 247 - 748 585

TOTAL ASSETS 2 180 758 93 988 (22 197) 2 252 549

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

CD PROJEKT RED GOG.COM Consolidation eliminations Total

EQUITY 1 941 440 33 563 (15 074) 1 959 929

Equity attributable to shareholders of the parent entity 1 941 440 33 563 (15 074) 1 959 929

Share capital 100 739 136 (136) 100 739

Supplementary capital 1 368 366 62 796 (5 515) 1 425 647

Supplementary capital from sale of shares above nominal value 115 909 - - 115 909

Other reserve capital 45 225 335 (1 348) 44 212

Exchange rate differences 1 079 (65) 1 014 2 028

Retained earnings 241 273 (29 791) (9 006) 202 476

Net profit (loss) for the reporting period 68 849 152 (83) 68 918

Noncontrolling interest equity - - - -

LONG-TERM LIABILITIES 37 797 2 626 (2 598) 37 825

Other financial liabilities 23 309 2 598 (2 598) 23 309

Other liabilities 2 800 - - 2 800

Deferred revenues 5 952 16 - 5 968

Provisions for employee benefits and similar liabilities 368 12 - 380

Other provisions 5 368 - - 5 368

SHORT-TERM LIABILITIES 201 521 57 799 (4 525) 254 795

Other financial liabilities 33 327 771 (771) 33 327

Trade liabilities 33 650 40 575 (2 953) 71 272

Current income tax liabilities 31 589 - - 31 589

Other liabilities 4 912 4 220 - 9 132

Deferred revenues 17 536 5 517 - 23 053

Provisions for retirement benefits and similar liabilities 6 1 - 7

Other provisions 80 501 6 715 (801) 86 415

TOTAL EQUITY AND LIABILITIES 2 180 758 93 988 (22 197) 2 252 549

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Segmented consolidated statement of financial position as of 31.12.2021*

CD PROJEKT RED GOG.COM Consolidation eliminations Total

FIXED ASSETS 906 304 17 860 (18 318) 905 846

Property, plant and equipment 105 236 5 316 9 036 119 588

Intangibles 58 382 11 - 58 393

Expenditures on development projects 347 802 2 318 75 350 195

Investment properties 57 082 - (12 448) 44 634

Goodwill 56 438 - - 56 438

Investments in subsidiaries 14 978 - (14 978) -

Shares in subsidiaries excluded from consolidation 38 520 - - 38 520

Deferrals 4 741 6 693 - 11 434

Other financial assets 178 540 - - 178 540

Deferred income tax assets 43 899 3 522 (3) 47 418

Other receivables 686 - - 686

WORKING ASSETS 1 177 941 78 794 (3 846) 1 252 889

Inventories 15 886 - - 15 886

Trade receivables 123 605 3 875 (2 187) 125 293

Current income tax receivables 98 - - 98

Other receivables 113 724 1 433 (1 659) 113 498

Deferrals 4 154 9 609 - 13 763

Other financial assets 307 765 - - 307 765

Bank deposits (maturity beyond 3 months) 265 000 - - 265 000

Cash and cash equivalents 347 709 63 877 - 411 586

TOTAL ASSETS 2 084 245 96 654 (22 164) 2 158 735

* adjusted

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

CD PROJEKT RED GOG.COM Consolidation eliminations Total

EQUITY 1 875 936 33 352 (14 932) 1 894 356

Equity attributable to shareholders of the parent entity 1 875 936 33 352 (14 932) 1 894 356

Share capital 100 739 136 (136) 100 739

Supplementary capital 1 368 366 62 796 (5 515) 1 425 647

Supplementary capital from sale of shares above nominal value 115 909 - - 115 909

Other reserve capital 49 007 276 (1 289) 47 994

Exchange rate differences 642 (65) 1 014 1 591

Retained earnings 2 595 - (9 027) (6 432)

Net profit (loss) for the reporting period 238 678 (29 791) 21 208 908

Noncontrolling interest equity - - - -

LONG-TERM LIABILITIES 36 079 2 691 (2 658) 36 112

Other financial liabilities 21 080 2 658 (2 658) 21 080

Other liabilities 2 860 - - 2 860

Deferred revenues 6 403 21 - 6 424

Provisions for employee benefits and similar liabilities 368 12 - 380

Other provisions 5 368 - - 5 368

SHORT-TERM LIABILITIES 172 230 60 611 (4 574) 228 267

Other financial liabilities 25 661 869 (728) 25 802

Trade liabilities 15 703 39 787 (2 110) 53 380

Current income tax liabilities 24 445 1 - 24 446

Other liabilities 4 134 7 567 (1 659) 10 042

Deferred revenues 26 072 5 476 - 31 548

Provisions for retirement benefits and similar liabilities 6 1 - 7

Other provisions 76 209 6 910 (77) 83 042

TOTAL EQUITY AND LIABILITIES 2 084 245 96 654 (22 164) 2 158 735

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Segmented consolidated statement of financial position as of 31.03.2021*

CD PROJEKT RED GOG.COM Consolidation eliminations Total

FIXED ASSETS 890 580 31 320 (17 344) 904 556

Property, plant and equipment 110 646 4 131 (1 689) 113 088

Intangibles 58 952 174 - 59 126

Expenditures on development projects 368 431 20 413 (11) 388 833

Investment properties 45 248 - - 45 248

Goodwill 56 438 - - 56 438

Investments in subsidiaries 15 628 - (15 628) -

Shares in subsidiaries excluded from consolidation 8 234 - - 8 234

Deferrals 5 258 6 602 - 11 860

Other financial assets 150 554 - - 150 554

Deferred income tax assets 70 852 - (16) 70 836

Other receivables 339 - - 339

WORKING ASSETS 1 894 283 91 678 (3 460) 1 982 501

Inventories 15 902 - - 15 902

Trade receivables 50 874 3 432 (2 131) 52 175

Other receivables 116 652 16 949 (1 329) 132 272

Deferrals 4 309 6 518 - 10 827

Other financial assets 219 286 804 - 220 090

Bank deposits (maturity beyond 3 months) 73 - - 73

Cash and cash equivalents 1 487 187 63 975 - 1 551 162

TOTAL ASSETS 2 784 863 122 998 (20 804) 2 887 057

* adjusted

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

CD PROJEKT RED GOG.COM Consolidation eliminations Total

EQUITY 2 181 216 61 910 (15 596) 2 227 530

Equity attributable to shareholders of the parent entity 2 181 216 61 910 (15 596) 2 227 530

Share capital 100 739 136 (136) 100 739

Supplementary capital 739 094 42 141 (5 515) 775 720

Supplementary capital from sale of shares above nominal value 115 909 - - 115 909

Other reserve capital 55 310 926 (1 939) 54 297

Exchange rate differences 240 (65) 1 014 1 189

Retained earnings 1 135 561 20 655 (9 027) 1 147 189

Net profit (loss) for the reporting period 34 363 (1 883) 7 32 487

Noncontrolling interest equity - - - -

LONG-TERM LIABILITIES 19 827 1 358 (1 292) 19 893

Other financial liabilities 15 422 1 287 (1 287) 15 422

Other liabilities 3 113 - - 3 113

Deferred income tax liabilities - 5 (5) -

Deferred revenues 915 45 - 960

Provisions for employee benefits and similar liabilities 377 21 - 398

SHORT-TERM LIABILITIES 583 820 59 730 (3 916) 639 634

Other financial liabilities 7 939 505 (456) 7 988

Trade liabilities 97 883 37 533 (1 856) 133 560

Current income tax liabilities 67 494 256 - 67 750

Other liabilities 3 122 6 693 (1 329) 8 486

Deferred revenues 36 559 4 918 - 41 477

Provisions for retirement benefits and similar liabilities 3 1 - 4

Other provisions 370 820 9 824 (275) 380 369

TOTAL EQUITY AND LIABILITIES 2 784 863 122 998 (20 804) 2 887 057

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Activity segments

In the first quarter of 2022 the Group engaged in business activities in two segments:

 CD PROJEKT RED,

 GOG.COM.

CD PROJEKT RED

Target and scope of business activity

The activity of the CD PROJEKT RED segment is carried out in the framework of CD PROJEKT S.A. (domestic holding company of

the CD PROJEKT Group), CD PROJEKT Inc. (USA) and CD PROJEKT RED STORE sp. z o.o. (online merch store).

The segment’s activities cover creation and publication of videogames, licensing the associated distribution rights, coordinating

promotional activities as well as manufacturing, distributing or licensing tie-in products and merchandise which exploits the

commercial appeal of brands held by the Company.

Developing and publishing videogames represents the main area of activity of the CD PROJEKT RED studio. It bases upon brands

owned by the Company – The Witcher and Cyberpunk. The Studio is globally recognized for Cyberpunk 2077 and for its series of

The Witcher games – all of which are its flagship brands. It also develops GWENT: The Witcher Card game, an online card game

with built-in microtransaction support.

In the scope of its publishing activities the Company also assumes responsibility for its promotional and advertising campaigns, and

maintains direct relations with the player base via electronic and social media channels as well as through regular participation in

trade fairs. The segment also covers the activities of the online merch store at gear.cdprojektred.com

which markets products

directly to fans of CD PROJEKT RED games.

Key products

As of the publication date of this report, key releases in the Company’s portfolio include The Witcher, The Witcher 2: Assassins of

Kings, The Witcher 3: Wild Hunt, two expansion packs for the latter (Hearts of Stone and Blood and Wine) as well as Cyberpunk

2077 – the Studio’s first game set in the Cyberpunk universe, launched on 10 December 2020. On 15 February 2022 CD PROJEKT

RED released a dedicated next-gen console version of Cyberpunk 2077.

Since 2018 CD PROJEKT RED has been developing GWENT: The Witcher Card Game (PC, macOS, iOS, Android) and

Thronebreaker: The Witcher Tales, based upon similar gameplay mechanics (PC, iOS, Nintendo Switch, Xbox One, PlayStation 4,

Android).

GOG.COM

Target and scope of business activity

GOG.COM currently ranks among the world’s most popular independent digital game distribution platform. It is distinguished by

offering digital products free of cumbersome DRM

measures.

The platform is offered in English, French, German, Chinese and Polish – this includes full game localizations as well as dedicated

customer support and integration with locally popular payment channels, accepting payments in thirteen currencies. In addition to

Windows PC releases, GOG.COM also carries releases for the macOS and Linux operating systems.

GOG.COM activities focus on digital distribution of videogames via the Company’s proprietary GOG.COM distribution platform and

the GOG GALAXY application. The platform enables customers to purchase games, remit payment and download game files to

their personal devices, while GOG GALAXY facilitates automatic updates, cloud saves and online gameplay (including cross-

platform gameplay), while also handling the online elements of GWENT, sales support and processing in-game transactions in the

game’s PC release.

Key products

As of the publication date of this report, the GOG.COM digital distribution platform offers over 6400 products from more than 1000

partners. This includes both timeless classics and fresh releases from such well-known brands as Bethesda, Disney, Electronic Arts,

Ubisoft, Konami and Warner Bros. Games are also distributed using the proprietary GOG GALAXY application, which is designed

to maximize customer comfort and experience related to purchasing, playing and updating games from the GOG.COM catalogue.

GOG GALAXY also facilitates online and cross-platform gameplay.

DRM (Digital Rights Management) – a broad term which refers to technologies which limit access to digital content (games, music, movies, books) to specific persons or

timeslots.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

The Group uses GOG.COM to market its own products directly to end users – this includes The Witcher, The Witcher 2: Assassins

of Kings, The Witcher 3: Wild Hunt (along with its expansion packs – Hearts of Stone and Blood and Wine, also offered as the Game

of the Year Edition), Thronebreaker: The Witcher Tales and Cyberpunk 2077. Owing to GOG GALAXY in-game purchases placed

by users of the PC edition of GWENT take advantage of GOG’s sales and payment services.

Disclosure of the issuer’s significant accomplishments and shortcomings in

each activity segment in the first quarter of 2022

CD PROJEKT RED

Cyberpunk 2077

On 15 February 2022 Patch 1.5 for Cyberpunk 2077 – the game’s next-gen update – was released to gamers, incorporating a range

of improvements for next-gen consoles (PlayStation 5 and Xbox Series X|S). Following its release, the next-gen update may be

downloaded free of charge by anyone who had purchased PlayStation 4 or Xbox One versions of the game. Patch 1.5 also includes

new content, including the ability to modify the player’s in-game physical appearance, new apartments and new quests. Developers

have also improved NPC AI, along with certain aspects of the in-game environment, and introduced a range of bugfixes. The next-

gen release of the game also received a fresh marketing identity.

The launch of the game’s next-gen edition (on 15 February 2022) was also accompanied by a reinvigorated global marketing and

advertising campaign, titled “Love it, or burn it”, which subversively encouraged gamers to return to Night City and see for

themselves how Cyberpunk 2077 had changed since its original release in December 2020. Gamers wishing to encounter Night

City on PlayStation 5 and Xbox Series X|S were provided with a free trial version of the game, offering five hours of next-gen

gameplay.

In the first quarter of 2022 Cyberpunk 2077 received additional awards and accolades. The game was recognized in Steam Awards

2021, topping the “Outstanding Story-Rich Game” category. In a reader survey carried out by the benchmark.pl service, Cyberpunk

2077 was named the best PC game of 2021, and in March 2022 it received a prestigious Excellence Award at the 25th edition of

Japan Media Arts Festival.

GWENT: The Witcher Card Game

In January 2022 CD PROJEKT RED confirmed it was working on a new project extending the gameplay mechanics of GWENT: The

Witcher Card Game. This entirely new single-player card game, based upon GWENT, with a working title of “Project Golden Nekker”,

is scheduled for release by the end of the current year.

On 8 February 2022 the 8th GWENT Journey season began, offering over 100 new unlockable levels and 80 awards. On 11 February

GWENT players were invited to participate in the annual Love Event. Those who accepted special quests during this time were

rewarded with unique items and other prizes, along with a unique skin for the Northern Kingdoms commander – Queen Calanthe.

Events related to The Witcher videogame series

On 21 March 2022 CD PROJEKT RED announced that it was working on a new saga within The Witcher videogame series. The

corresponding social media announcement teased a new medallion. Within one day of publication, the tweet (posted on the official

The Witcher profile) attracted over 300 thousand likes and was shared more than 70 thousand times, making it the most popular

tweet ever posted by CD PROJEKT RED (a near fivefold increase in likes and shares over the previous record holder – i.e. the

*beep* tweet teasing Cyberpunk 2077, posted in 2018). The Studio also announced that the next big game set in The Witcher

universe would be based on Unreal Engine 5.

On 25 March 2022 CD PROJEKT RED, in collaboration with Dark Horse Comics, announced a digital edition of the medieval Witcher-

themed manga – The Witcher: Ronin – to be released in the fall of the current year. The comic may already be preordered.

On 31 March 2022 the Studio unveiled the first official Witcher Cookbook, developed together with popular culinary bloggers from

Nerds’ Kitchen. The cookbook will contain 80 recipes inspired by the rich (not only in terms of cuisine) world of The Witcher games.

It is set to appear in the fall of 2022 and may already be preordered.

GOG.COM

The GOG.COM platform

As of the publication date of this statement, the list of products available on GOG.COM numbers over 6 400 items. In the first quarter

of 2022 the platform’s catalogue was expanded, among others, with XCOM: Chimera Squad, Cloudpunk, Partisans 1941, Martha is

Dead, ELEX II, Shadow Warrior 3, Hero’s Hour, Siberia: The World Before, TUNIC, Beholder 3, Strange Horticulture and Expeditions:

ROME.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Sales support

Videogame sales support activities comprise mainly adding new, attractive items to the GOG.COM catalogue and organizing

seasonal sale campaigns.

For GOG.COM, the first quarter of the year is marked by the platform’s traditional recurring sale campaigns. The year kicked off

with the Winter Sale, followed by the New Year Sale in late January, with over 2500 games offered at bargain prices. In February,

the platform celebrated Valentine’s Day with its “We Love Games” event, while in March the spring edition of the GOG Games

Festival teased new games which would be offered on the platform in the coming months, and cut prices on over 3 000 existing

games. In mid-April, following the close of the reporting season, GOG organized two additional campaigns – Indie Spring Sale and

Good Old Games Week, focusing on classic games available on the platform.

Other corporate events

On 26 January 2022 the Supervisory Board of the Company adopted a resolution appointing Mr. Paweł Zawodny and Mr. Jeremiah

Cohn to the Management Board of CD PROJEKT S.A. effective on 1 February 2022. As Management Board Member, Mr. Paweł

Zawodny is responsible for the technological and organizational transformation of CD PROJEKT RED, while Mr. Jeremiah Cohn

coordinates the activities of the Group’s marketing and communication departments, and supervises franchise development.

On 3 March 2022 the Management Board of the Company announced that it had suspended sales of CD PROJEKT Group products

and distribution of games on the GOG.COM platform in Russia and Belarus.

On 21 March 2022 the Company announced that it had concluded negotiations and signed a licensing and partnership agreement

with Epic Games Epic Games International S.à r.l. The agreement concerns use of Unreal Engine by the Company as well as

cooperation between the parties in the scope of enhancing and improving the engine. Under the agreement the Company gains

the right to develop and publish games powered by Unreal Engine 4, 5 and subsequent versions. Epic Games will also provide

dedicated technical support for games published by the Company. The agreement was concluded for a period of 15 years with

a prolongation option. It places no restriction on the number of games created with the use of Unreal Engine.

On 25 March 2022 the Management Board of the Company announced its current policy concerning diversification of surplus

current cash. The updated policy specifies that debt instruments held by the Company may account for not more than 80% (up from

50%) of the Company’s current financial assets, which are defined as the sum of the following: cash and near-cash, bank deposits

with maturity periods longer than 3 months, Polish State Treasury bonds, other bonds guaranteed by the Polish State Treasury and

bonds issued by foreign governments, estimated at the price specified in the corresponding forward contract hedges. The updated

policy also includes rating criteria for foreign bonds, and allows for up to 15% of total financial assets to be allocated to unhedged

securities denominated in USD or EUR.

Disclosure of factors which may affect the Group’s future results

Future growth of CD PROJEKT S.A. and the CD PROJEKT Group is critically dependent on the ability to retain world-class creative

professionals and experts, and to attract a growing number of specialists, both domestic and foreign, to work on the Group’s future

releases. Strategic directions related to talent acquisition, team development and support are presented in the

CD PROJEKT Group

Strategy Update (including the attached video commentary) and in the CD PROJEKT Group Report on Sustainable Development

for 2021.

Ongoing expansion of the team, shifting to a hybrid work mode, and upscaling of development work calls for effective management

of production and publishing activities at the Company HQ in Warsaw and at its branch offices in Kraków, Wrocław, Vancouver, Los

Angeles, Boston, Seoul and Tokyo. The market performance of each new release is an important aspect of the Studio’s reputation

as a developer of top-quality, highly sought-after entertainment products. It also underpins the value and recognition of brands such

as The Witcher, Cyberpunk and CD PROJEKT RED, upon which the long-term development strategy of the Company and its Group

is founded. Moreover, the activities of CD PROJEKT Group member companies are affected by external factors such as the

macroeconomic outlook, legal reforms and changes in taxation. In this sense, CD PROJEKT is in a similar position to many other

companies conducting business on domestic and international markets.

Key internal and external factors which, in the Board’s opinion, may prove detrimental to the Group’s activities and growth prospects,

along with the risk management system in force at the Group, are listed in the risk assessment section of the

Management Board

report on CD PROJEKT Group activities in 2021.

With regard to further quarterly periods in 2022 the CD PROJEKT Group intends to develop its activities in an organic manner.

Additionally, while introducing the Group’s strategy update the Management Board also announced increased openness to mergers

and acquisitions in order to assist the growth of CD PROJEKT RED and support implementation of the Group’s strategy.

CD PROJEKT RED

Key factors which determine the growth of the CD PROJEKT RED segment include ongoing projects, the scale of development

work associated with those projects and their perceived popularity among gamers. In this context, the most significant factors

shaping the current results of the CD PROJEKT Group include the popularity of previously published games set in The Witcher and

Cyberpunk universe, as well as – in future periods – events surrounding the development and market reception of further

development projects.

In the coming quarters CD PROJEKT RED will focus on releasing the next-gen edition of The Witcher 3: Wild Hunt, releasing a large

expansion for Cyberpunk 2077 and launching the CYBERPUNK: EDGERUNNERS anime series, which will enrich the Studio’s

franchise with a new format and improve its global recognition.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Another important milestone for CD PROJEKT RED, scheduled for the coming quarters, involves integration of the Studio’s

development processes with a new game engine – specifically, Unreal Engine 5 – on the basis of the licensing and partnership

agreement concluded with Epic Games in March 2022. Use of this engine should significantly streamline the game development

process. The Company’s strategic partnership with Epic Games involves further work on UE5 in the scope of support for open-

world games, and adaptation and optimization of its elements to match the conceptual framework of future projects. In addition,

Epic Games has also committed itself to providing dedicated technical support for CD PROJEKT RED games. Working with UE5

also significantly broadens the Studio’s recruitment opportunities given that Unreal Engine is familiar to many game developers.

Maintaining the observed growth dynamics and expansion of the CD PROJEKT RED segment will depend on further enhancement

of its world-class videogame development skillset and on the capacity for effective communication with the global gaming

community. Both aspects are crucial for Studio’s ongoing transformation – labeled RED 2.0 – which aims, among others, to apply

a more agile approach to the videogame development process, thereby improving quality, shortening future marketing campaigns

and ensuring that such campaigns are based on more polished content. In project management terms, maintaining two separate

major franchises (The Witcher and Cyberpunk), along with several independent development teams, will enable the Company to

conduct parallel work on several projects, beginning in 2022, and will smoothen its long-term release schedule. This migration

towards a dual franchise model supported by several independent product lines also permits optimization of manufacturing and

financial activities, mitigates important risk factors and makes it easier for Company employees to seek professional fulfillment.

GOG.COM

In the GOG.COM segment, maintaining the current high sales volume should be supported by the customers’ increasing tendency

to turn to online channels for purchases, as observed during the recent years.

GOG.COM growth also depends on seeking additional brand-new products. Accordingly, GOG sp. z o.o. actively communicates

with leading global developers and publishers of videogames, continually expanding its list of business partners and products

offered. Each new release on GOG.COM contributes to the platform’s popularity and drives up sales.

In addition to adding new products GOG sp. z o.o. also seeks to expand its user base by attracting new players – those who have

not yet set up a GOG.COM account. The Company has been successful in this regard, owing to its intensive PR activities and

synergies resulting from cooperation with CD PROJEKT S.A. The GOG.COM customer pool continues to grow at a steady pace.

Further growth of activities in the GOG.COM segment, including the potential to acquire unique know-how and experience, and to

fully leverage the Company’s technological expertise, will, in the coming quarters of 2022, be influenced by development of

features which support sales on the platform, including better integration of GOG GALAXY monetization mechanisms with the

GOG.COM storefront, as well as increased focus on expanding the GOG.COM catalogue with classic games.

Other factors

The growth of the CD PROJEKT Group will also be affected by development work and other activities carried out by its subsidiaries

– Spokko and The Molasses Flood. Spokko intends to continue developing The Witcher: Monster Hunter, thus naturally contributing

to the Group’s know-how and ensuring its presence on the mobile game market, which is currently the fastest growing market

segment. As for The Molasses Flood, it is developing a new game based on one of CD PROJEKT IPs, with a view towards

establishing a new product line for the Group.

Effect of the political and economic situation in Ukraine on sales in the

reporting period

Effect on sales

In response to the Russian armed invasion of Ukraine, on 3 March 2022 the Management Board of CD PROJEKT decided to

suspend sales of CD PROJEKT Group products as well as games distributed on the GOG.COM platform on the territory of Russia

and Belarus. The Company estimates that throughout the 12-month period between March 2021 and February 2022 the aggregate

share of Russia and Belarus in revenues from sales of products in the CD PROJEKT RED segment and in GOG.COM sales revenues

amounted to 5.4% and 3.7% respectively.

At an early stage of hostilities the Polish currency (in which most expenses borne by the Group are denominated) weakened against

USD and EUR, i.e. the main currencies in which the Group obtains sales revenues. Given that most of the Group’s sales are exports,

this strengthening of foreign currencies against the domestic currency should be viewed as a favorable circumstance.

Risks associated with the current political and economic situation in Ukraine

The Company continually monitors the effects of the current political and economic situation in Ukraine, Russia and Belarus upon

the activities of the CD PROJEKT Group. The Company has terminated, or is in the process of terminating collaboration with Russian

suppliers. At the present time the Company does not intend to initiate any further collaboration with Russian or Belorussian entities.

As of the publication date of this report the Group’s operating activities proceed unhindered, and the effect of the Russian armed

invasion of Ukraine do not have a significant negative impact on the Group’s operations. In the Management Board’s opinion the

current political and economic situation in Ukraine does not affect the quantitative data contained in the financial statement, does

not provide a reason to suspect impairment of assets, should not have a significant negative effect on the Group’s earnings in

further quarters of 2022, and does not jeopardize continuation of the Company’s activities within 12 months of the conclusion of

the reporting period.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Given the unprecedented character of ongoing events and significant uncertainty associated therewith – particularly the lack of

reliable knowledge concerning the duration of the Russian invasion – as of the publication date of this report it is impossible to

accurately predict the long-term effects of the invasion upon the condition and earnings of the Company and its Group. Any

assessments and forecasts in this regard are fraught with uncertainty, and will be subject to further monitoring and analysis by the

Group. Insofar as possible, the above assessment reflects the Company’s knowledge as of the publication date of this financial

statement.

Disclosure of seasonal or cyclical activities

CD PROJEKT RED

The revenues and financial result of the CD PROJEKT RED segment are strongly affected by the videogame release schedule.

CD PROJEKT RED usually takes between 2 and 5 years to produce a game. Initial development work occurs before the previous

game in the series is complete and ready to be released.

CD PROJEKT RED also engages in smaller-scale projects – such as add-ons for its own games or adapting existing products to

work on new gaming platforms. Such projects may be carried out directly by the Company or by its external partners, and their

implementation usually takes several months (up to about a dozen).

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 quarter, while the first and the third quarter (the

latter of which overlaps with the summer vacation season) see weaker sales.

For GWENT: The Witcher Card Game, operated in the game-as-a-service model, the revenue stream depends on the overall

popularity of the service and on the appeal of new in-game content released to gamers.

In addition to pure development activities, the Company also actively manages its franchises in other fields, working to continually

expand its target audience, and exploring new media types and platforms.

Chart 1 Effect of new releases on the quarterly revenues from sales of products, goods and materials by CD PROJEKT RED in 2011-

2022 (PLN thousands)

200000

400000

600000

800000

1000000

1200000

1400000

1600000

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

GOG.COM

The digital videogame distribution market, which is the main area of activity of GOG.COM, is characterized by seasonal fluctuations

in revenues. On an annual basis, the highest revenues are typically obtained in the fourth quarter while the lowest revenues

correspond to the third quarter. Sales in Q2 and Q4 are boosted by promotional activities organized in these periods.

The sales volume is also strongly dependent on the timing of new releases in each reporting period.

Chart 2 Quarterly sales of goods and materials in the GOG.COM segment in 2018-2022 (PLN thousands)

Disclosure of key clients

The CD PROJEKT Group collaborates with external clients whose share in revenues exceeds 10% of the consolidated sales

revenues of the Group.

Within the CD PROJEKT RED segment the activities of CD PROJEKT S.A. carried out in collaboration with three external clients

throughout Q1 2022 generated revenues which exceeded 10% of the consolidated sales revenues of the CD PROJEKT Group for

this period (calculated incrementally):

 client I: 55 735 thousand PLN, i.e. 25.8% of the Group’s consolidated sales revenues,

 client II: 44 639 thousand PLN, i.e. 20.7% of the Group’s consolidated sales revenues,

 client III: 28 680 thousand PLN, i.e. 13.3% of the Group’s consolidated sales revenues.

The abovementioned clients are not affiliated with CD PROJEKT S.A. or any of its subsidiaries. In other activity segments no external

client accounted for more than 10% of the Group’s consolidated sales revenues.

40000

80000

120000

160000

200000

Q1 Q2 Q3 Q4

2018 2019 2020 2021 2022

Supplementary information –

additional notes and clarifications

regarding the condensed interim

consolidated financial statement

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 1. Disclosure of circumstances affecting assets, liabilities, equity, net

financial result and cash flows which are unusual due to their type, size or

effect

In this condensed interim consolidated financial statement of the CD PROJEKT Group for the period between 1 January and 31

March 2022 no circumstances affecting assets, liabilities, equity, net financial result and cash flows have been identified which

could be regarded as unusual due to their type, size or effect.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 2. Property, plant and equipment

Changes in PP&E (by category) between 01.01.2022 and 31.03.2022*

Land holdings

Buildings and

structures

Civil engineering

objects

Machinery and

equipment

Vehicles

Other PP&E

PP&E under

construction

Total

Gross carrying amount

as of 01.01.2022

40 435 75 861 1 876 52 127 3 243 4 930 2 327 180 799

Increases from: - 4 292 - 1 221 - 36 4 331 9 880

purchase - 103 - 1 189 - 11 4 331 5 634

lease agreements

concluded

- 3 956 - - - - - 3 956

reassignment from

PP&E under

construction

- 233 - 17 - 25 - 275

reclassification - - - 15 - - - 15

Reductions from: - 816 212 1 939 - 104 356 3 427

sale - - - 84 - - - 84

disposal - 816 212 1 854 - 89 - 2 971

reassignment from

PP&E under

construction

- - - - - - 275 275

reclassification - - - - - 15 81 96

other - - - 1 - - - 1

Gross carrying amount

as of 31.03.2022

40 435 79 337 1 664 51 409 3 243 4 862 6 302 187 252

Depreciation as

of 01.01.2022

1 250 19 797 558 35 145 1 792 2 669 - 61 211

Increases from: 142 1 673 53 2 476 128 239 - 4 711

depreciation 142 1 673 53 2 462 128 239 - 4 697

reclassification - - - 14 - - - 14

Reductions from: - 845 76 1 925 3 82 - 2 931

sale - - - 80 - - - 80

disposal - 816 76 1 842 - 67 - 2 801

reclassification - - - - - 15 - 15

other - 29 - 3 3 - - 35

Depreciation as

of 31.03.2022

1 392 20 625 535 35 696 1 917 2 826 - 62 991

Impairment

allowances as

of 01.01.2022

- - - - - - - -

Impairment

allowances as

of 31.03.2022

- - - - - - - -

Net carrying amount as

of 01.01.2022

39 185 56 064 1 318 16 982 1 451 2 261 2 327 119 588

Net carrying amount as

of 31.03.2022

39 043 58 712 1 129 15 713 1 326 2 036 6 302 124 261

* adjusted

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Contractual commitments for future acquisition of PP&E

31.03.2022 31.12.2021 31.03.2021

Leasing of passenger cars 429 429 195

Total 429 429 195

Usufruct of PP&E held under lease agreements

31.03.2022

Gross value Depreciation Net value

Land holdings 14 540 515 14 025

Immovable properties 11 276 6 577 4 699

Civil engineering objects 94 59 35

Vehicles 1 512 347 1 165

Total 27 422 7 498 19 924

31.12.2021

Gross value Depreciation Net value

Land holdings 14 540 464 14 076

Immovable properties 8 037 6 698 1 339

Civil engineering objects 94 47 47

Vehicles 1 504 257 1 247

Total 24 175 7 466 16 709

31.03.2021

Gross value Depreciation Net value

Land holdings 14 540 311 14 229

Immovable properties 7 861 4 671 3 190

Civil engineering objects 94 12 82

Vehicles 1 042 279 763

Total 23 537 5 273 18 264

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Nota 3. Intangibles and expenditures on development projects

Changes in intangibles and expenditures on development projects between

01.01.2022 and 31.03.2022

Development projects

in progress

Development projects

completed

Trademarks

Patents and licenses

Copyrights

Computer software

Goodwill

Intangible assets under

construction

Others

Gross carrying amount

as of 01.01.2022

95 169 841 986 33 199 2 154 18 331 36 018 56 438 19 1 083 314

Increases from: 35 129 12 059 - 26 - 10 962 - - 58 176

purchases - - - 26 - 10 962 - - 10 988

own creation 35 129 - - - - - - - 35 129

reassignment from

development

projects in progress

- 12 059 - - - - - - 12 059

Reductions from: 12 059 - - - - - - - 12 059

reassignment from

development

projects in progress

12 059 - - - - - - - 12 059

Gross carrying amount

as of 31.03.2022

118 239 854 045 33 199 2 180 18 331 46 980 56 438 19 1 129 431

Depreciation as

of 01.01.2022

- 552 378 - 1 928 173 29 227 - - 583 706

Increases from: - 18 319 - 63 31 1 065 - - 19 478

depreciation - 18 319 - 63 31 1 065 - - 19 478

Reductions - - - - - - - - -

Depreciation as

of 31.03.2022

- 570 697 - 1 991 204 30 292 - - 603 184

Impairment

allowances as

of 01.01.2022

20 806 13 776 - - - - - - 34 582

Impairment

allowances as

of 31.03.2022

20 806 13 776 - - - - - - 34 582

Net carrying amount as

of 01.01.2022

74 363 275 832 33 199 226 18 158 6 791 56 438 19 465 026

Net carrying amount as

of 31.03.2022

97 433 269 572 33 199 189 18 127 16 688 56 438 19 491 665

Contractual commitments for future acquisition of intangible assets

None reported.

Note 4. Goodwill

No changes in goodwill occurred between 1 January and 31 March 2022.

Note 5. Investment properties

The parent Company owns the property complex at Jagiellońska 74 and Jagiellońska 76 in Warsaw. Since part of this complex is

being leased to other entities, including other member companies of the CD PROJEKT Group, the Group has decided to report it in

part as an investment property. The remaining part of both properties is used by the Group for its own purposes.

Properties purchased by the Group are estimated at purchase cost less depreciation.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Changes in the value of investment properties between 01.01.2022 and 31.03.2022*

Gross balance sheet value as of 01.01.2022 48 170

Increases from: 157

activation of costs 157

Reductions -

Gross balance sheet value as of 31.03.2022 48 327

Depreciation as of 01.01.2022 3 536

Increases from: 473

depreciation 473

Reductions -

Depreciation as of 31.03.2022 4 009

Impairment allowances as of 01.01.2022 -

Increases -

Reductions -

Impairment allowances as of 31.03.2022 -

Net balance sheet value as of 31.03.2022 44 318

* adjusted

Contractual commitments for acquisition of investment properties

None reported.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 6. Inventories

31.03.2022 31.12.2021 31.03.2021

Goods 14 909 15 843 15 803

Other materials 61 43 99

Gross inventories 14 970 15 886 15 902

Inventory impairment allowances - - -

Net inventories 14 970 15 886 15 902

Changes in inventory impairment allowances

None reported.

Note 7. Trade and other receivables

31.03.2022 31.12.2021 31.03.2021

Gross trade and other receivables 182 819 240 288 185 650

Impairment allowances 813 811 864

Trade and other receivables 182 006 239 477 184 786

from affiliates 1 356 1 238 126

from external entities 180 650 238 239 184 660

Changes in impairment allowances on receivables

Trade

receivables

Other

receivables

Total

OTHER ENTITIES

Impairment allowances as of 01.01.2022 79 732 811

Increases from: 2 - 2

creation of allowances for past-due and contested receivables 2 - 2

Reductions - - -

Impairment allowances as of 31.03.2022 81 732 813

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Current and overdue trade receivables as of 31.03.2022

Total Not overdue

Days overdue

1 – 60 61 – 90 91 – 180 181 – 360 >360

AFFILIATES

gross receivables 1 348 294 - - 1 054 - -

non-fulfillment ratio - 0% 0% 0% 0% 0% 0%

impairment

allowances as

determined by non-

fulfillment ratio

- - - - - - -

impairment

allowances as

individually assessed

- - - - - - -

total expected credit loss - - - - - - -

Net receivables 1 348 294 - - 1 054 - -

Total Not overdue

Days overdue

1 – 60 61 – 90 91 – 180 181 – 360 >360

OTHER ENTITIES

gross receivables 67 155 66 758 271 2 - - 124

non-fulfillment ratio - 0% 0% 0% 0% 0% 0%

impairment

allowances as

determined by non-

fulfillment ratio

- - - - - - -

impairment

allowances as

individually assessed

81 - - - - - 81

total expected credit loss 81 - - - - - 81

Net receivables 67 074 66 758 271 2 - - 43

Total

gross receivables 68 503 67 052 271 2 1 054 - 124

impairment

allowances

81 - - - - - 81

Net receivables 68 422 67 052 271 2 1 054 - 43

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Other receivables

31.03.2022 31.12.2021 31.03.2021

Other gross receivables, including: 114 316 114 916 133 343

tax returns except corporate income tax 69 462 77 067 96 519

advance payments associated with expenditures on development

projects

32 480 30 435 24 303

advance payments for supplies 10 346 5 391 10 415

deposits 1 014 998 636

provisions for sales revenues - advances 75 67 352

employee compensation settlements 31 5 33

prepayments associated with purchases of PP&E and intangibles 10 34 120

settlements with board members at the Group’s member

companies

8 7 8

prepayments associated with licensing royalties - - 86

prepayments associated with purchases of investment properties - 79 60

other 158 101 79

Impairment allowances 732 732 732

Total other gross receivables 113 584 114 184 132 611

short-term 113 206 113 498 132 272

long-term 378 686 339

Note 8. Other financial assets

31.03.2022 31.12.2021 31.03.2021

Loans granted 10 441 8 890 6 067

Bonds 427 607 477 415 363 774

Derivative financial instruments 236 - 803

Other financial assets, including: 438 284 486 305 370 644

short-term assets 261 828 307 765 220 090

long-term assets 176 456 178 540 150 554

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 9. Deferrals

31.03.2022 31.12.2021 31.03.2021

Minimum guarantees and advance payments at GOG.COM 21 496 15 230 11 889

Software, licenses 5 815 3 905 4 739

Expenses associated with future marketing activities 1 715 1 734 1 840

Repairs and refurbishment 1 387 1 470 1 611

Fees associated with right of first refusal 1 351 1 378 1 458

IT security 432 421 525

Non-life insurance 332 525 207

Payments related to perpetual usufruct of land 213 - -

Business travel (airfare, accommodation, insurance) 48 64 3

Marketing campaigns 3 19 1

Participation in trade fairs - 7 -

Other prepaid expenses 458 444 414

Total prepaid expenses, including: 33 250 25 197 22 687

short-term 18 931 13 763 10 827

long-term 14 319 11 434 11 860

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 10. Deferred income tax

Negative temporary differences requiring recognition of deferred tax assets

31.12.2021

Differences affecting

deferred tax

aggregated with

financial result

31.03.2022

Provisions for other employee benefits 385 - 385

Provisions for compensation dependent on

financial result and other compensation

39 543 10 124 49 667

Tax loss 15 133 (314) 14 819

Negative exchange rate differences 3 275 10 702 13 977

Difference between balance sheet value and

tax value of expenditures on development

projects

24 780 9 24 789

Employee compensation and social security

expenses payable in future reporting periods

61 10 71

Deferred revenues associated with adding

funds to virtual wallets and participation in the

additional benefits programs

3 401 314 3 715

Other provisions 48 841 (19 275) 29 566

R&D tax relief 303 891 - 303 891

Advances recognized as taxable income 1 469 348 1 817

Difference between net balance sheet value

and tax value of PP&E and intangibles

12 - 12

Estimation of forward contracts 142 (142) -

Other sources 83 29 112

Total negative temporary differences 441 016 1 805 442 821

subject to 5% tax rate 60 423 3 877 64 300

subject to 19% tax rate 380 593 (2 072) 378 521

withholding tax levied abroad 1 209 40 1 249

Deferred tax assets 75 350 (200) 75 150

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Positive temporary differences requiring recognition of deferred tax liabilities

31.12.2021

Differences affecting

deferred tax

aggregated with

financial result

31.03.2022

Difference between balance sheet value and

tax value of PP&E and intangibles

14 431 (65) 14 366

Income in the current period invoiced in the

following period / accrued income

129 257 (62 994) 66 263

Positive exchange rate differences 14 963 9 411 24 374

Estimation of forward contracts - 237 237

Difference between balance sheet value and

tax value of expenditures on development

projects

272 934 (9 684) 263 250

Other sources 86 241 327

Total positive temporary differences 431 671 (62 854) 368 817

subject to 5% tax rate 386 324 (64 149) 322 175

subject to 19% tax rate 45 347 1 295 46 642

Deferred tax liabilities 27 932 (2 961) 24 971

Deferred income tax was estimated in part by applying the standard corporate income tax rate of 19% (applicable to revenues from

other sources) and in part by applying the preferential rate of 5% (applicable to eligible IP-related revenues under the IP BOX tax

relief regulation). In determining the correct rate to apply to temporary differences, the Group relied on projections regarding the

tax base to which each temporary difference is likely to apply.

Net balance of deferred tax assets/liabilities

31.03.2022 31.12.2021 31.03.2021

Deferred tax assets 75 150 75 350 96 402

Deferred tax liabilities 24 971 27 932 25 566

Net deferred tax assets/(liabilities) 50 179 47 418 70 836

Income tax reported in profit/loss account

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Current income tax, including: 25 729 64 440

withholding tax paid abroad 15 673 3

Changes in deferred income tax (2 754) (59 876)

Income tax reported in profit/loss account 22 975 4 564

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 11. Provisions for employee benefits and similar liabilities

31.03.2022 31.12.2021 31.03.2021

Provisions for retirement benefits and pensions 387 387 402

Total, including: 387 387 402

short-term provisions 7 7 4

long-term provisions 380 380 398

No changes in provisions for employee benefits and similar liabilities occurred between 1 January and 31 March 2022.

Note 12. Other provisions

31.03.2022 31.12.2021 31.03.2021

Provisions for returns - - 130 508

Provisions for liabilities, including: 91 783 88 410 249 861

provisions for financial statement audit and review expenses 184 160 28

provisions for bought-in services 1 085 1 042 788

provisions for compensation contingent upon the Group’s financial

result, and other compensation

58 105 44 856 238 589

provisions for other expenses 32 409 42 352 10 456

Total, including: 91 783 88 410 380 369

short-term provisions 86 415 83 042 380 369

long-term provisions 5 368 5 368 -

Changes in other provisions

Provisions for

compensation

contingent upon the

Group’s financial result,

and other

compensation

Other provisions Total

As of 01.01.2022 44 856 43 554 88 410

Provisions created during the financial

year

13 380 13 211 26 591

Provisions consumed 56 23 012 23 068

Provisions dissolved 75 75 150

As of 31.03.2022, including: 58 105 33 678 91 783

short-term provisions 58 105 28 310 86 415

long-term provisions - 5 368 5 368

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 13. Other liabilities

31.03.2022 31.12.2021 31.03.2021

Liabilities from other taxes, duties, social security payments and

others, except corporation tax

8 679 9 536 7 867

VAT 3 841 5 515 4 952

Flat-rate withholding tax 888 905 38

Personal income tax 1 112 1 835 922

Social security (ZUS) payments 2 723 1 164 1 889

National Disabled Persons Rehabilitation Fund (PFRON) payments 62 56 47

PIT-8AR settlements 53 61 19

Other liabilities 3 253 3 366 3 732

Liabilities associated with right of first refusal and future marketing

costs

2 800 2 860 3 040

Other employee-related liabilities 105 125 38

Other liabilities payable to management board members at Group

member companies

22 36 2

Liabilities due to shareholders in association with capital

contributions

- - 2

Advance payments received from foreign clients - 13 -

Other liabilities 326 332 650

Total, including: 11 932 12 902 11 599

short-term liabilities 9 132 10 042 8 486

long-term liabilities 2 800 2 860 3 113

Note 14. Deferred revenues

31.03.2022 31.12.2021 31.03.2021

Subsidies 7 812 8 277 14 851

Future period revenues 17 105 25 715 24 126

GOG Wallet 4 058 3 947 3 425

Official phone rental and other services 46 33 35

Total, including: 29 021 37 972 42 437

short-term deferrals 23 053 31 548 41 477

long-term deferrals 5 968 6 424 960

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 15. Disclosure of financial instruments

Fair value of financial instruments per class

Following an analysis of each class of financial instruments held by the Group, the Management Boards has determined that their

carrying amounts in all cases reflect their corresponding fair value as of 31 March 2022, 31 December 2021 and 31 March 2021

respectively.

31.03.2022 31.12.2021* 31.03.2021

LEVEL 1

Assets estimated at fair value

Financial assets estimated at fair value through other

comprehensive income

177 736 228 661 213 220

foreign government bonds - CHF - - 16 644

foreign government bonds - EUR 24 731 24 517 25 311

foreign government bonds - USD 153 005 204 144 171 265

LEVEL 2

Assets estimated at fair value through financial result

Derivative instruments 236 - 803

forward currency contracts - EUR 6 - 66

forward currency contracts - USD 230 - 737

Liabilities estimated at fair value through financial result

Derivative instruments 24 303 18 047 4 980

forward currency contracts - CHF - - (1 758)

forward currency contracts - EUR 598 486 624

forward currency contracts - USD 23 705 17 561 6 114

* adjusted

Financial assets estimated at fair value are classified according to a three-tier fair value hierarchy:

Level 1 – quoted prices in active markets for identical assets or liabilities.

Level 2 – fair value estimated on the basis of observable market inputs.

Level 3 – fair value estimated on the basis of unobservable market inputs.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Financial assets – classification and estimation

31.03.2022 31.12.2021 31.03.2021

Financial assets estimated at amortized cost 1 163 087 1 060 209 1 760 370

Other long-term receivables 378 686 339

Trade receivables 68 422 125 293 52 175

Cash and cash equivalents 748 585 411 586 1 551 162

Bank deposits (maturity beyond 3 months) 85 390 265 000 73

State Treasury bonds and bonds guaranteed by the State

Treasury

249 871 248 754 150 554

Loans granted 10 441 8 890 6 067

Financial assets estimated at fair value through other

comprehensive income

177 736 228 661 213 220

Foreign government bonds 177 736 228 661 213 220

Financial assets estimated at fair value through financial result 236 - 803

Derivative financial instruments 236 - 803

Total financial assets 1 341 059 1 288 870 1 974 393

Zobowiązania finansowe – klasyfikacja i wycena

31.03.2022 31.12.2021* 31.03.2021

Financial liabilities estimated at amortized cost 103 605 82 215 151 990

Trade liabilities 71 272 53 380 133 560

Other financial liabilities 32 333 28 835 18 430

Financial liabilities estimated at fair value through financial result 24 303 18 047 4 980

Derivative financial instruments 24 303 18 047 4 980

Total financial liabilities 127 908 100 262 156 970

* adjusted

In line with the requirements of IFRS 9 Financial Instruments the parent Company has carried out an analysis of the business model

concerning management of financial assets and of the characteristics of contractual cash flows for each component of the bond

portfolio. This led the parent Company to conclude the following:

 The purpose of the conducted investments in domestic and foreign treasury bonds is to hold to maturity and collect the

associated contractual cash flows;

 The investment mandates covering the foreign bond portfolio also permit sale of bonds prior to the expiration of their

respective redemption periods in the framework of the adopted portfolio management strategy;

 All purchased bonds pass the SPPI test.

As a result of the presented analysis, the purchased bonds were assigned to two distinct financial asset management models

identified by the entity which manages the bond portfolio. Polish State Treasury bonds and bonds guaranteed by the Polish State

Treasury – given the intent to hold them to maturity and collect the associated contractual cash flows – were estimated at amortized

cost. Foreign treasury bonds – given the investment mandate which permits management of portfolio by the Asset Manager – were

estimated at fair value through other comprehensive income.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 16. Sales revenues

Sales revenues by territory*

01.01.2022 – 31.03.2022 01.01.2021 – 31.03.2021

PLN % PLN %

Domestic sales 7 855 3.63% 6 826 3.45%

Exports, including: 208 291 96.37% 190 806 96.55%

Europe 44 678 20.67% 34 726 17.57%

North America 141 329 65.40% 135 803 68.71%

South America 634 0.29% 648 0.33%

Asia 19 929 9.22% 17 687 8.95%

Australia 1 673 0.77% 1 811 0.92%

Africa 48 0.02% 131 0.07%

Total 216 146 100% 197 632 100%

Revenues from exports reported for Europe include the Russian market.

* The presented data reflects the territories of residence of the immediate clients of Group member companies. For

CD PROJEKT S.A. this means distributors, while in the scope of retail distribution carried out by GOG.COM sp. z o.o., CD PROJEKT

RED STORE sp. z o.o. and CD PROJEKT Inc. – final customers.

Sales revenues by product type

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Own products 173 787 145 868

External products 41 724 51 377

Other revenues 635 387

Total 216 146 197 632

Sales revenues by distribution channel

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Videogames – box editions 10 712 10 112

Videogames – digital editions 197 926 181 728

Other revenues 7 508 5 792

Total 216 146 197 632

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 17. Operating expenses

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Depreciation of PP&E, intangibles, expenditures on development projects and

investment properties, including:

3 894 4 490

depreciation of leased buildings 421 609

depreciation of leased vehicles 81 60

Consumption of materials and energy 634 1 016

Bought-in services, including: 37 829 37 112

short-term leases and leases of low-value assets 121 207

Taxes and fees 265 245

Employee compensation, social security and other benefits 37 350 48 768

Business travel 81 20

Use of company cars 59 44

Cost of goods and materials sold 29 255 38 615

Cost of products and services sold 18 372 23 657

Other expenses 511 494

Total 128 250 154 461

Selling costs 60 606 62 077

General and administrative costs, including: 20 017 30 112

research costs 4 977 9 519

Cost of products, services, goods and materials sold 47 627 62 272

Total 128 250 154 461

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 18. Other operating revenues and expenses

Other operating revenues

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Revenues from lease contracts 1 660 1 487

Subsidies 465 17

Reinvoicing revenues 226 267

Dissolution of unused cost provisions 206 -

Other sales 11 10

Profit from sales of PP&E 3 -

Other miscellaneous operating revenues 19 8

Total other operating revenues 2 590 1 789

Other operating expenses

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Disposal (destruction) of materials and goods 2 301 33

Donations 1 097 -

Own cost of leases 894 892

Depreciation of investment properties 463 435

Reinvoicing expenses 226 271

Disposal of PP&E and intangibles 170 23

Disposal of investment properties - 51

Help Me Refund – refunds - 36

Loss from sales of PP&E - 8

Nonculpable shortfalls in working assets - 7

Other miscellaneous expenses 12 -

Total other operating expenses 5 163 1 756

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 19. Financial revenues and expenses

Financial revenues

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Revenues from interest 7 663 168

on short-term bank deposits 2 364 40

on bonds 5 198 101

on loans granted 101 27

Other financial revenues 9 128 9 894

settlement and estimation of derivative financial instruments 2 037 9 894

profit from maturation of bonds 7 089 -

forward contracts – Management Board members 2 -

Total financial revenues 16 791 10 062

Financial expenses

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Interest payments 243 203

on bonds 101 156

on lease agreements 135 44

on budget commitments 7 3

Other financial expenses 9 976 16 006

surplus negative exchange rate differences 3 488 15 302

settlement and estimation of derivative financial instruments 6 397 -

losses from maturation of bonds - 628

bond purchase fees 91 76

Total financial expenses 10 219 16 209

Net balance of financial activities 6 572 (6 147)

Note 20. Short-term lease agreements and lease of low-value assets

The Group has entered into agreements concerning leasing of office equipment (multipurpose photocopiers, kitchen equipment)

as well as apartments which potentially meet the criteria of lease agreements under IFRS 16. However, the Group regards these

agreements as either short-term or concerning low-value assets, and, consequently, does not apply the new standard to these

agreements, in line with the practical expedient specified in Art. 5 of the new standard. In such cases lease payments are reported

as costs during the period in which they are incurred, using either the straight-line method or another method which best reflects

the breakdown of payments throughout the duration of the agreement (information regarding costs related to such agreements,

incurred between 1 January and 31 March 2022, can be found in Note 17).

As of 31 March 2022, 31 December 2021 and 31 March 2021 future payments associated with irrevocable short-term lease

agreements and lease agreements concerning low-value assets are as follows:

31.03.2022 31.12.2021 31.03.2021

Due within 1 year 338 121 327

Due between 1 and 5 years 131 149 151

Total 469 270 478

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 21. Issue, buyback and redemption of debt and capital securities

Issue of debt securities

Not applicable.

Issue of capital securities

31.03.2022 31.12.2021 31.03.2021

Stock volume (thousands) 100 739 100 739 100 739

Nominal value per share (PLN) 1 1 1

Share capital 100 739 100 739 100 739

Note 22. Dividends declared or paid out and collected

The Group’s member companies did not pay out or collect any dividends between 1 January and 31 March 2022.

On 25 May 2022 the Management Board of CD PROJEKT S.A. recommended to Annual General Meeting the amount of 100 739

thousand PLN to be divided among the shareholders in the form of the dividend in the amount of 1 PLN per one share.

Note 23. Transactions with affiliates

Conditions governing transactions with affiliates

Intragroup transactions are conducted at market prices on the basis of the so-called arm’s length principle. The principle stipulates

that transactions between affiliated entities should be carried out under conditions similar to those which would otherwise apply to

transactions carried out by unaffiliated entities.

The prices of goods and services exchanged in controlled transactions are estimated by CD PROJEKT Group member companies

in accordance with OECD guidelines and national legislation, including the so-called safe harbor regulations. Transfer method

selection is preceded by a thorough analysis of each transaction, which includes, among others, the assignment of responsibilities

to each party, the assets involved and the corresponding allocation of risks and costs. In each case, the method regarded as most

appropriate for the given transaction type is applied so that transactions between member companies of the CD PROJEKT Group

are carried out under conditions approximating those which unaffiliated entities could be expected to agree upon.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Transactions with affiliates following consolidation eliminations

Sales to affiliates Purchases from affiliates

01.01.2022 – 31.03.2022 01.01.2021 – 31.03.2021 01.01.2022 – 31.03.2022 01.01.2021 – 31.03.2021

SUBSIDIARIES

CD PROJEKT Co., Ltd. (undergoing

liquidation)

- - - 939

Spokko sp. z o.o. 343 141 - -

CD PROJEKT RED Vancouver

Studio Ltd.

22 - 3 226 -

The Molasses Flood LLC - - 3 962 -

MANAGEMENT BOARD MEMBERS AT GROUP MEMBER COMPANIES

Marcin Iwiński 1 10 - -

Adam Kiciński - 1 - -

Piotr Nielubowicz 1 2 - -

Michał Nowakowski 3 6 - -

Adam Badowski 6 - - -

Piotr Karwowski 2 - - -

Paweł Zawodny 1 - - -

Jeremiah Cohn 1 - - -

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Receivables from affiliates Liabilities due to affiliates

31.03.2022 31.12.2021 31.03.2021 31.03.2022 31.12.2021 31.03.2021

SUBSIDIARIES

CD PROJEKT Co., Ltd. (undergoing

liquidation)

- - - - - 311

Spokko sp. z o.o. 10 713 9 113 6 185 - - -

CD PROJEKT RED Vancouver

Studio Ltd.

1 076 1 008 - 874 164 -

The Molasses Flood LLC - - - 1 792 1 019 -

MANAGEMENT BOARD MEMBERS AT GROUP MEMBER COMPANIES

Marcin Iwiński - - 5 - 19 1

Adam Kiciński - - - - 5 -

Michał Nowakowski 2 - 3 - 7 1

Adam Badowski 6 7 - - 5 -

Urszula Jach - Jaki - - - 15 - -

Paweł Zawodny - - - 7 - -

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 24. Bad loans and credits, and breaches of loan and credit agreements

not subject to remedial proceedings as of the balance sheet date

Not applicable.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 25. Changes in conditional liabilities and assets since the close of the most recent financial year

Conditional liabilities from sureties and collateral pledged

Type of agreement Currency 31.03.2022 31.12.2021 31.03.2021

mBank S.A.

Declaration of submission to enforcement Collateral for debit card agreement PLN 920 920 920

Promissory note agreement Collateral for framework concerning financial market transactions PLN 50 000 50 000 50 000

Promissory note agreement Collateral for lease agreement PLN - 667 667

Promissory note agreement Collateral for lease agreement PLN 427 - -

Ingenico Group S.A. (formerly Global Collect Services BV)

Contract of guarantee Guarantee of discharge of liabilities by GOG sp. z o.o. EUR - 155 155

Mazovian Unit for Implementation of EU Programs (Mazowiecka Jednostka Wdrażania Programów Unijnych)

Contractual pledge

Pledge to cover maintenance and renovation expenses related to

leased space

PLN 40 58 113

National Center for Research and Development (Narodowe Centrum Badań i Rozwoju)

Promissory note agreement Co-financing agreement no. POIR.01.02.00-00-0105/16 PLN 7 711 7 711 7 934

Promissory note agreement Co-financing agreement no. POIR.01.02.00-00-0110/16 PLN 3 846 3 846 5 114

Promissory note agreement Co-financing agreement no. POIR.01.02.00-00-0112/16 PLN 3 692 3 692 3 857

Promissory note agreement Co-financing agreement no. POIR.01.02.00-00-0118/16 PLN 5 324 5 324 5 324

Promissory note agreement Co-financing agreement no. POIR.01.02.00-00-0120/16 PLN 1 204 1 204 1 204

Pekao Leasing Sp. z o.o.

Promissory note agreement Lease agreement no. 37/1991/21 PLN 418 442 -

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Santander Bank Polska S.A. (formerly BZ WBK S.A.)

Promissory note agreement Framework agreement concerning financial market transactions PLN 23 500 23 500 13 000

Bank Polska Kasa Opieki S.A.

Promissory note agreement Framework agreement concerning financial market transactions PLN 35 000 35 000 20 000

BNP Paribas Bank Polska S.A.

Promissory note agreement Framework agreement concerning financial market transactions PLN 26 600 26 600 75 000

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 26. Changes in the structure of the Group and its member entities

occurring during the reporting period

No changes in the structure of the Group and its member entities occurred during the reporting period.

Note 27. Agreements which may, in the future, result in changes in the

proportion of shares held by shareholders and bondholders

On 24 May 2016 the General Meeting of Shareholders of the parent Company voted to institute an incentive program which

remained in force between 2016 and 2019.

Following positive verification of the attainment of the program’s goals, which took place in 2020, 5 167 500 exercisable

entitlements existed. In the course of exercising these entitlements the Company sold to entitled parties a total of 516 700 shares

which had previously been bought back on the open market. The remaining entitlements vested by issuing to entitled parties a total

of 4 650 800 subscription warrants. The entitled parties subsequently exercised 4 618 800 from the 4 650 800 subscription

warrants assigned thereto, each entitling its holder to claim a single share of the Company issued in the framework of a conditional

increase of the Company share capital.

As of the publication date of this statement, there remain 32 000 outstanding Series B subscription warrants, entitling holders to

claim the corresponding number of Series M shares. These warrants will expire on 31 October 2022.

Based on the resolutions adopted by the General Meetings on 28 July 2020 and 22 September 2020, the Company introduced

another (third) edition of its incentive program, covering the years 2020-2025. As stipulated by the relevant resolutions, a total of

4 000 000 entitlements may be conditionally assigned under the program. The program may vest either by issue and assignment

of subscription warrants enabling entitled parties to claim shares of the parent Company (issued separately as a conditional increase

of the Company share capital) or by presenting the entitled parties with an offer to purchase shares which the Company will have

previously bought back on the open market under a dedicated buy-back program. In either case, assignment and exercise of

subscription warrants or purchase from the Company of its own shares will be conditioned upon meeting the goals and criteria of

the incentive program. The program provides result goals (80% of entitlements), market goals (20% of entitlements), along with

certain individual goals (in selected cases) as well as – in all cases – a loyalty criterion which must be met up until attainment of

goals and vesting of the program is confirmed.

As of the publication date of this financial statement a total of 2 243 000 entitlements have been granted under the 2020-2025

incentive program.

Based on the Group’s earnings in 2020 and 2021, and projections regarding further years covered by the program, the Management

Board of the parent Company has performed an analysis of the feasibility of attaining the result goal as defined for the entire

duration of the 2020-2025 incentive program, and has consequently revised its projections, declaring that the most likely outcome

is that the result goal for the duration of the program cannot be attained.

Note 28. Fiscal settlements

Fiscal settlements and other areas of activity governed by legal regulations (such as import duties or currency exchange) may be

subject to audits by administrative bodies authorized to impose high penalties and sanctions. The lack of entrenched legal

regulations in Poland leads to numerous ambiguities and inconsistencies in this regard. Interpretation of existing tax law frequently

varies from state organ to state organ as well as between state organs and business entities, giving rise to areas of uncertainty and

conflict. These conditions elevate tax risks in Poland beyond the level encountered in states with more developed fiscal systems.

As a rule, fiscal settlements may be subject to state audits within five years following the end of the calendar year in which tax

payment was due.

Given that the Company meets the requirements expressed in Art. 19 of the Act of 30 May 2008 on certain forms of supporting

innovative activity (JL 2021 item 706), on 11 August 2021, the Minister for Entrepreneurship and Technology issued decision no.

DNP-V.4241.11.2021, upholding the previous decision no. 4/CBR/18 of 19 June 2018 which bestowed upon the Company the status

of an R&D center. This status entitles the Company to apply broader R&D tax relief options specified in the Corporate Income Tax

Act of 15 February 1992 (JL 2021, item 1800).

On 1 January 2019, the Corporate Income Tax Act was amended with regulations which enable taxpayers to apply a preferential

tax rate of 5% to eligible income derived from intellectual property rights. Having fulfilled the conditions and formal stipulations

expressed in the aforementioned legislation, the Company is able to apply the preferential rate to certain sources of its income.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 29. Clarifications regarding the condensed interim consolidated cash

flow statement

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Cash and cash equivalents reported in cash flow statement 748 585 1 551 162

Cash on balance sheet 748 585 1 551 162

Depreciation 3 894 4 490

Depreciation of intangibles 590 825

Depreciation of expenditures on development projects 299 414

Depreciation of PP&E 2 995 3 241

Depreciation of investment properties 10 10

Profit (loss) from exchange rate differences results from: (1 359) (8 975)

Exchange rate differences on estimation of bonds (1 359) (8 975)

Interest and share in profits consist of: (7 427) 32

Interest on bank deposits (2 364) (40)

Interest on bonds (5 097) 55

Interest accrued on loans granted (101) (27)

Interest on lease agreements 135 44

Profit (loss) from investment activities results from: (434) 12 215

Revenues from sale of PP&E (7) -

Net value of PP&E sold 4 8

Net value of PP&E liquidated 170 19

Net value of intangibles liquidated - 4

Net value of investment properties liquidated - 51

Settlement and estimation of derivative instruments 6 397 11 429

Bond purchase fees 91 76

Revenues from maturation of bonds (61 449) (33 098)

Value of bonds held to maturity 54 360 33 726

Changes in provisions result from: (4 176) (81 400)

Balance of changes in provisions for liabilities 3 373 (105 198)

Provisions for compensation contingent upon the Group’s financial result aggregated

with expenses on development projects

(7 549) 23 798

Changes in inventory status result from: 916 (8 945)

Balance of changes in inventory status 916 (8 945)

Changes in receivables result from: 43 740 1 091 367

Balance of changes in short-term receivables 56 860 1 091 366

Balance of changes in long-term receivables 308 (18)

Balance of changes in advance payments for investment properties (79) (10)

Withholding tax paid abroad (15 673) (3)

Current income tax adjustments 303 -

Changes in advance payments related to expenditures on development projects 2 045 (50)

Changes in advance payments related to purchase of PP&E, intangibles and

investment properties

(24) 82

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Changes in short-term liabilities except financial liabilities result from: 15 515 (7 824)

Balance of changes in short-term liabilities 31 650 64 531

Current income tax adjustments (7 143) (66 008)

Changes in financial liabilities (7 525) (5 055)

Adjustments for changes in liabilities due to purchase of PP&E 10 (17)

Adjustments for changes in liabilities due to purchase of intangibles (201) (69)

Adjustment for liabilities related to purchase of investment properties (1 276) (1 206)

Changes in other assets and liabilities result from: (17 064) (3 968)

Balance of changes in prepaid expenses (8 053) 2 372

Balance of changes in deferred revenues (8 951) (6 284)

Adjustment for prepaid expenses booked on the other side as liabilities (60) (60)

Adjustment for depreciation aggregated with deferrals - 4

Other adjustments include: 1 817 9 370

Cost of incentive program 1 148 9 395

Estimation of derivative financial instruments (378) (726)

Depreciation aggregated with cost of products, services, goods and materials sold,

consortium settlements and other operating expenses

806 601

Exchange rate differences 72 100

Miscellaneous adjustments 169 -

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 30. Cash flows and other changes resulting from financial activities

01.01.2022 Cash flows

Non-cash changes

31.03.2022

Acquisition of PP&E

under lease agreements

Exchange rate

differences

Accrued interest

Assignment of own

Lease liabilities 16 655 (984) 3 962 2 135 - 19 770

Total 16 655 (984) 3 962 2 135 - 19 770

01.01.2021 Cash flows

Non-cash changes

31.03.2021

Acquisition of PP&E

under lease agreements

Exchange rate

differences

Accrued interest

Assignment of own

Lease liabilities 18 939 (707) - 154 44 - 18 430

Receivables from

entitled parties in

the framework of

the incentive

program

- 2 149 - - - (2 149) -

Total 18 939 1 442 - 154 44 (2 149) 18 430

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 31. Events following the balance sheet date

In Current Report no. 10/2022 of 13 April 2022 the Management Board of the Company announced that it had updated its release

plan concerning The Witcher 3: Wild Hunt for next-gen consoles. Based upon recommendations submitted by persons in charge of

development, the Management Board decided that further development of the next-gen version of The Witcher 3: Wild Hunt would

be handled by an internal team, and decided to postpone the game’s release, previously scheduled for the second quarter of 2022.

In Current Report no. 16/2022 of 19 May 2022 the Management Board of CD PROJEKT S.A. announced that, based on

recommendations from persons in charge of production, the release of The Witcher 3: Wild Hunt for next-gen consoles is scheduled

for the fourth quarter of 2022.

On 9 May 2022 the Extraordinary General Meeting of CD PROJEKT RED STORE sp. z o.o. voted to increase the company’s share

capital by issuing 380 new shares with a nominal value of 50 PLN each. All of these shares were taken up by CD PROJEKT S.A. –

the company’s sole shareholder. The newly issued shares were fully paid up in cash, in the amount of 1 900 PLN, with the surplus

over the shares’ nominal value transferred to the company’s reserve capital. The reported increase in share capital was entered in

the register of entrepreneurs of the National Court Registry on 18 May 2022. This increase in share capital enabled the company

to repay the loan previously granted to it by CD PROJEKT S.A.

On 9 May 2022, as a result of decisions undertaken by the Board of Directors of CD PROJEKT Inc. and the Management Board of

CD PROJEKT S.A. – the company’s sole shareholder – the share capital of CD PROJEKT Inc. was increased from 3 050 thousand

USD to 3 500 thousand USD, i.e. by 450 thousand USD, by way of increasing the nominal value of each of the 10 000 outstanding

shares of CD PROJEKT Inc. by 45 USD. The increased value of these shares was fully paid up in cash by CD PROJEKT S.A., for a

total of 450 thousand USD. This increase in share capital enabled the company to repay the loan previously granted to it by CD

PROJEKT S.A.

On 24 May 2022 the Extraordinary General Meeting of Spokko sp. z o.o. voted to increase the company’s share capital by issuing

589 new shares with a nominal value of 50.00 PLN each. 584 of these newly issued shares are being taken up by CD PROJEKT

S.A. in exchange for a cash payment in the amount of 26 010 thousand PLN, with the surplus over the nominal value of these shares

transferred to the company’s reserve capital. Furthermore, 5 newly issued shares are being taken up under analogous conditions,

i.e. in exchange for a cash payment in the amount of 223 thousand PLN, by one of the company’s existing shareholders – Mr. Maciej

Weiss. The increase in the company’s share capital will become effective on the day it is registered in the registry of entrepreneurs.

As a result of these transactions, CD PROJEKT S.A.’s share in voting rights and share capital of Spokko sp. z o.o. will increase from

74.0% to 87.6%. This increase in share capital will enable the company to repay the loan previously granted to it by CD PROJEKT

S.A.

On 25 May 2022 the Management Board of CD PROJEKT S.A. adopted a resolution concerning submission to the Ordinary General

Meeting of the Company of a recommendation concerning allocation of the Company’s net profit for 2021. The Management Board

recommends that 100 739 thousand PLN be allocated to a dividend of 1 PLN per share, and that the remaining portion of the

unallocated profit, at 135 195 thousand PLN, be allocated to the Company’s reserve capital. The Board also clarified that, in line with

information disclosed by the Company in its periodic reports throughout 2021, the Company’s allocable net profit for 2021, reported

as 240 113 thousand PLN, had been adjusted by deducting the negative retained earnings for the 2020 financial year, at

4 179 thousand PLN (resulting from adjustment of the calculation of the Company’s deferred tax assets for 31 December 2020),

yielding a figure of 235 934 thousand PLN, which represents the aggregate allocable net earnings for the 2021 financial year. In

conjunction with the above, the Management Board recommended that (i) the dividend record date be set to 5 July 2022, and (ii)

the dividend payment date be set to 12 July 2022. This recommendation was submitted to the Supervisory Board for endorsement.

The final decision regarding allocation of profit and payment of a dividend rests with the Ordinary General Meeting.

Śródroczne skrócone skonsolidowane sprawozdanie finansowe Grupy Kapitałowej CD PROJEKT za okres od 1 stycznia do 31 marca

(wszystkie kwoty podane są w tys. złotych o ile nie podano inaczej)

Załączone informacje stanowią integralną część niniejszego sprawozdania finansowego

Supplementary information

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Legal proceedings

No significant court, arbitration or administrative proceedings involving the parent Company or its subsidiaries were initiated during

the reporting period.

With regard to other ongoing legal proceedings disclosed in

the Management Board report on CD PROJEKT Group activities in

2021, no significant changes occurred.

Shareholding structure

Shareholders who control, directly or through subsidiaries, at least 5% of the total number of votes at

the General Meeting of Shareholders of the parent entity as of the publication date of this quarterly

statement

The share capital of the parent Company amounts to 100 738 800 PLN and is divided into 100 738 800 shares with a nominal value

of 1 PLN each. The shareholding structure, including the percentage share of the overall share capital and votes controlled at the

General Meeting of the parent Company is determined on the basis of formal notifications filed with the parent Company by

shareholders who control at least 5% of the total number of votes at the General Meeting.

Qty. of shares

% share in

share capital

Qty. of votes at

the GM

% share in total

number of

votes at the

Marcin Iwiński 12 873 520

12.78%

12 873 520 12.78%

Michał Kiciński 10 433 719 10.36% 10 433 719 10.36%

Piotr Nielubowicz 6 858 717

6.81%

6 858 717 6.81%

The Goldman Sachs Group, Inc. 1 583 898*

1.57%

6 345 034* 6.30%

other shareholders 68 988 946 68.48% 64 227 810 63.76%

* According to Current Report no. 15/2022 of 11 May 2022 the total percentage share of votes controlled by The Goldman Sachs

Group on 6 May 2022 on the basis of shares (1.57%) and other financial instruments (4.73%) was 6.30%.

According to the relevant notification received by the Company, The Goldman Sachs Group, Inc. indirectly controls 1 583 898 votes

from shares, 1 945 322 votes which may be gained as a result of exercise or conversion of financial instruments comprising

securities on loan, and 2 815 814 votes from other types of financial instruments.

Changes in shareholding structure of the parent entity

According to notifications received by the parent Company, the only changes in the shareholding structure with regard to

shareholders who control at least 5% of the total number of votes at General Meetings of the parent Company which have occurred

throughout the reporting period and by the publication date of this financial statement involved the percentage share of votes

controlled by The Goldman Sachs Group, Inc. The above section presents the most recent data available to the parent Company in

this regard.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Parent Company shares held by members of the Management Board and

Supervisory Board

Changes in number of shares held by members of the Management Board and the Supervisory

Board *

Name Position As of 01.01.2022 As of 31.03.2022 As of 26.05.2022

Adam Kiciński President of the Board 4 046 001 4 046 001 4 046 001

Marcin Iwiński

Vice President of the

Board

12 873 520 12 873 520 12 873 520

Piotr Nielubowicz

Vice President of the

Board

6 858 717 6 858 717 6 858 717

Adam Badowski Board Member 692 640 692 640 692 640

Michał Nowakowski Board Member 580 290 580 290 580 290

Piotr Karwowski Board Member 108 728 108 728 108 728

Paweł Zawodny Board Member n/a 18 508 18 508

Katarzyna Szwarc

Chairwoman of the

Supervisory Board

10 10 10

Maciej Nielubowicz

Supervisory Board

Member

51 51 51

* According to declarations and notifications filed with the Company.

Validation of published projections

The Group had not published any projections referring to the reporting period.

Condensed interim separate financial

statement of CD PROJEKT S.A.

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Condensed interim separate profit and loss account

Note

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Sales revenues 177 820 146 298

Revenues from sales of products 172 413 142 067

Revenues from sales of services 669 342

Revenues from sales of goods and materials 4 738 3 889

Cost of products, services, goods and materials sold 21 118 25 804

Cost of products and services sold 18 280 22 169

Cost of goods and materials sold 2 838 3 635

Gross profit (loss) from sales 156 702 120 494

Selling costs 50 735 48 167

General and administrative costs 16 878 26 893

Other operating revenues 2 825 2 149

Other operating expenses 5 711 2 098

(Impairment)/reversal of impairment of financial instruments (2) (6)

Operating profit (loss) 86 201 45 479

Financial revenues 14 602 7 491

Financial expenses 8 190 13 146

Profit (loss) before tax 92 613 39 824

Income tax A 23 098 4 896

Net profit (loss) 69 515 34 928

Net earnings per share (in PLN) - -

Basic for the reporting period 0.69 0.35

Diluted for the reporting period 0.69 0.35

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Condensed interim separate statement of

comprehensive income

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Net profit/(loss) 69 515 34 928

Other comprehensive income which will be entered as profit (loss) following

fulfillment of specific criteria

(4 930) 184

Estimation of financial instruments at fair value through other comprehensive income,

adjusted for tax effects

(4 930) 184

Other comprehensive income which will not be entered as profit (loss) - -

Total comprehensive income 64 585 35 112

Condensed interim separate statement of financial

position

Note 31.03.2022 31.12.2021* 31.03.2021*

FIXED ASSETS 920 571 887 663 883 475

Property, plant and equipment 109 055 103 986 108 816

Intangibles 68 952 59 086 59 548

Expenditures on development projects 365 011 347 822 368 454

Investment properties 56 630 57 082 45 248

Goodwill C 49 168 49 168 49 168

Shares in subsidiaries excluded from consolidation 43 531 43 447 25 334

Deferrals 5 346 4 741 5 258

Other financial assets G 176 456 178 540 150 850

Deferred income tax assets A 46 044 43 418 70 765

Other receivables F,G 378 373 34

WORKING ASSETS 1 235 567 1 173 501 1 891 289

Inventories 11 263 13 539 13 411

Trade receivables F,G 69 546 123 821 51 381

Other receivables F 110 021 113 163 115 659

Deferrals 5 256 4 015 4 160

Other financial assets G 262 507 308 168 220 779

Bank deposits (maturity beyond 3 months) G 85 390 265 000 73

Cash and cash equivalents G 691 584 345 795 1 485 826

TOTAL ASSETS 2 156 138 2 061 164 2 774 764

* adjusted

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Note 31.03.2022 31.12.2021 31.03.2021

EQUITY 1 934 781 1 869 049 2 173 861

Share capital 21* 100 739 100 739 100 739

Supplementary capital 1 366 952 1 366 952 738 411

Supplementary capital from sale of shares above

nominal value

115 909 115 909 115 909

Other reserve capital 45 732 49 515 55 818

Retained earnings 235 934 (4 179) 1 128 056

Net profit (loss) for the reporting period 69 515 240 113 34 928

LONG-TERM LIABILITIES 31 526 29 756 18 894

Other financial liabilities G 17 039 14 757 14 488

Other liabilities 2 800 2 860 3 113

Deferred revenues 5 951 6 403 916

Provisions for employee benefits and similar liabilities 368 368 377

Other provisions B 5 368 5 368 -

SHORT-TERM LIABILITIES 189 831 162 359 582 009

Other financial liabilities G 26 073 18 620 7 060

Trade liabilities G 33 302 16 028 98 297

Current income tax liabilities 31 589 24 445 67 450

Other liabilities 4 837 4 059 3 076

Deferred revenues 13 572 23 042 35 463

Provisions for employee benefits and similar liabilities 5 5 3

Other provisions B 80 453 76 160 370 660

TOTAL EQUITY AND LIABILITIES 2 156 138 2 061 164 2 774 764

* Detailed information concerning these items can be found in explanatory notes accompanying the condensed interim

consolidated financial statement.

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Condensed interim statement of changes in separate equity

Share capital

Supplementary

capital

Supplementary

capital from sale of

shares above

nominal value

Other reserve

capital

Retained earnings

Net profit (loss) for

the reporting period

Total equity

01.01.2022 – 31.03.2022

Equity as of 01.01.2022 100 739 1 366 952 115 909 49 515 235 934 - 1 869 049

Cost of incentive

program

- - - 1 147 - - 1 147

Total comprehensive

income

- - - (4 930) - 69 515 64 585

Equity as of 31.03.2022 100 739 1 366 952 115 909 45 732 235 934 69 515 1 934 781

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Share capital

Supplementary

capital

Supplementary

capital from sale of

shares above

nominal value

Other reserve

capital

Retained earnings

Net profit (loss) for

the reporting period

Total equity

01.01.2021 – 31.12.2021

Equity as of 01.01.2021 100 655 737 542 113 844 47 068 1 132 235 - 2 131 344

Rectification of errors - - - - (4 179) - (4 179)

Adjusted equity 100 655 737 542 113 844 47 068 1 128 056 - 2 127 165

Cost of incentive

program

- - - (1 025) - - (1 025)

Payment in own shares 84 869 2 065 (869) - - 2 149

Dividend payment - - - - (503 694) - (503 694)

Allocation of net profit/

coverage of losses

- 628 541 - - (628 541) - -

Total comprehensive

income

- - - 4 341 - 240 113 244 454

Equity as of 31.12.2021 100 739 1 366 952 115 909 49 515 (4 179) 240 113 1 869 049

The Company has rectified its calculation of deferred tax assets for 31 December 2020, reclassifying some of the negative temporary differences from the 19% tax rate category to the 5% tax rate category.

This resulted in a decrease in Equity by 4 179 thousand PLN.

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Share capital

Supplementary

capital

Supplementary

capital from sale of

shares above

nominal value

Other reserve

capital

Retained earnings

Net profit (loss) for

the reporting period

Total equity

01.01.2021 – 31.03.2021

Equity as of 01.01.2021 100 655 737 542 113 844 47 068 1 132 235 - 2 131 344

Rectification of errors - - - - (4 179) - (4 179)

Adjusted equity 100 655 737 542 113 844 47 068 1 128 056 - 2 127 165

Cost of incentive

program

- - - 9 435 - - 9 435

Payment in own shares 84 869 2 065 (869) - - 2 149

Total comprehensive

income

- - - 184 - 34 928 35 112

Equity as of 31.03.2021 100 739 738 411 115 909 55 818 1 128 056 34 928 2 173 861

The Company has rectified its calculation of deferred tax assets for 31 December 2020 by reassigning some negative temporary differences from the 19% tax rate category to the 5% tax rate category.

This resulted in a decrease in Equity by 4 179 thousand PLN.

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Condensed interim separate statement of cash flows

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021*

OPERATING ACTIVITIES

Net profit (loss) 69 515 34 928

Total adjustments: 61 277 1 100 221

Depreciation of PP&E, intangibles, expenditures on development projects and

investment properties

2 987 3 401

Depreciation of expenditures on development projects recognized as

cost of products and services sold

17 941 21 883

Profit (loss) from exchange rate differences (1 362) (9 046)

Interest and profit sharing (7 288) (1)

Profit (loss) from investment activities (430) 12 203

Change in provisions (3 257) (80 487)

Change in inventories 2 276 (9 584)

Change in receivables 43 683 1 137 766

Change in liabilities excluding credits and loans 16 586 22 122

Change in other assets and liabilities (11 829) (7 394)

Other adjustments 1 970 9 358

Cash flows from operating activities 130 792 1 135 149

Income tax on pre-tax profit (loss) 7 426 4 894

Withholding tax paid abroad 15 672 3

Income tax (paid)/reimbursed (2 908) 1 737

Net cash flows from operating activities 150 982 1 141 783

INVESTMENT ACTIVITIES

Inflows 325 775 198 457

Repayment of loans granted 94 919

Closing bank deposits (maturity beyond 3 months) 265 000 164 368

Maturation of bonds 58 132 33 097

Interest on bonds 291 -

Interest on bank deposits 2 206 40

Other inflows from investment activities 52 33

Outflows 130 226 278 998

Purchases of intangibles and PP&E 14 859 6 833

Expenditures on development projects 27 697 29 069

Purchase of investment properties and activation of costs 89 41

Loans granted 2 100 1 540

Purchase of bonds and the associated purchase fees 91 241 442

Opening bank deposits (maturity beyond 3 months) 85 390 73

Net cash flows from investment activities 195 549 (80 541)

adjusted

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021*

FINANCIAL ACTIVITIES

Inflows 10 2 159

Net inflows from sale and issue of shares in the exercise of rights assigned under the

incentive program

- 2 149

Collection of receivables arising from financial lease agreements 10 10

Outflows 752 489

Payment of liabilities arising from lease agreements 629 466

Interest payments 123 23

Net cash flows from financial activities (742) 1 670

Total net cash flows 345 789 1 062 912

Balance of changes in cash and cash equivalents 345 789 1 062 912

Cash and cash equivalents at beginning of period 345 795 422 914

Cash and cash equivalents at end of period 691 584 1 485 826

* adjusted

Clarifications regarding the separate statement of cash flows

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

The “other adjustments” line item comprises: 1 970 9 358

Cost of incentive program 1 064 8 668

Depreciation aggregated with selling costs, consortium settlements and other

operating expenses

906 690

Comparability of financial statements and changes in

accounting policies

The accounting practices applied in preparing this condensed interim separate financial statement, the Management Board’s

professional judgment concerning the Company’s accounting practices as well as the main sources of uncertainty in estimations

are in all material aspects consistent with the practices applied in preparing the Separate Financial Statement of CD PROJEKT S.A.

for 2021, except for changes in practices and presentation-related adjustments described below. This condensed interim separate

financial statement should be read in conjunction with the Company’s separate financial statement for the year ending 31 December

2021.

Changes in accounting policies

Changes in accounting practices applicable to the Company are in all matters analogous to those described in the section titled

“Assumption of comparability of financial statements and changes in accounting policies” of the consolidated financial statement

for the period between 1 January and 31 March 2022.

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Presentation adjustments

This condensed interim separate financial statement for the period between 1 January and 31 March 2022 includes changes in the

presentation of certain financial data. In order to ensure comparability of financial data, adjustments were also introduced with

respect to reference data for 31 March 2021 and 31 December 2021. The following adjustments were made:

 In the statement of cash flows for the period between 1 January and 31 March 2021 the presentation of interest from bank

deposits was adjusted as follows:

- Other inflows from investment activities – adjusted by (40) thousand PLN

- Interest from bank deposits – adjusted by 40 thousand PLN

 In the statement of financial position for 31 December 2021 and 31 March 2021 the presentation of some of the land holdings

belonging to the Company was adjusted as follows:

- Property, plant and equipment – adjusted by 4 354 thousand PLN

- Investment properties – adjusted by (4 354) thousand PLN

These changes had no effect on the Company’s financial result or equity.

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Supplementary information concerning the separate

financial statement of CD PROJEKT S.A.

A. Deferred income tax

Negative temporary differences requiring recognition of deferred tax assets

31.12.2021

Differences affecting

deferred tax

aggregated with

financial result

31.03.2022

Provisions for other employee benefits 372 - 372

Provisions for compensation dependent on

financial result, and other compensation

39 400 10 255 49 655

Negative exchange rate differences 2 286 10 341 12 627

Difference between balance sheet value and

tax value of expenditures on development

projects

24 792 9 24 801

Compensation and social security payable in

future reporting periods

61 11 72

Other provisions 47 501 (19 441) 28 060

R&D tax relief 301 954 - 301 954

Advance payments recognized as taxable

income

1 469 348 1 817

Total negative temporary differences 417 835 1 523 419 358

subject to 5% tax rate 60 417 3 877 64 294

subject to 19% tax rate 357 418 (2 354) 355 064

Deferred tax assets 70 931 (253) 70 678

Positive temporary differences requiring creation of deferred tax liabilities

31.12.2021

Differences affecting

deferred tax

aggregated with

financial result

31.03.2022

Difference between net balance sheet value

and net tax value of PP&E and intangibles

14 129 (133) 13 996

Revenues obtained in the current period but

invoiced in future periods

128 789 (62 528) 66 261

Positive exchange rate differences 14 786 9 532 24 318

Difference between balance sheet value and

tax value of expenditures on development

projects

271 672 (9 504) 262 168

Other sources 91 209 300

Total positive temporary differences 429 467 (62 424) 367 043

subject to 5% tax rate 386 323 (64 150) 322 173

subject to 19% tax rate 43 144 1 726 44 870

Deferred tax liabilities 27 513 (2 879) 24 634

Deferred income tax was estimated in part by applying the standard corporate income tax rate of 19% (applicable to revenues from

other sources) and in part by applying the preferential rate of 5% (applicable to eligible IP-related revenues under the IP BOX tax

relief regulation). In determining the correct rate to apply to temporary differences, the Company relied on projections regarding

the tax base to which each temporary difference is likely to apply.

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Net balance of deferred tax assets/liabilities

31.03.2022 31.12.2021 31.03.2021

Deferred tax assets 70 678 70 931 92 853

Deferred tax liabilities 24 634 27 513 22 088

Net deferred tax – assets/(liabilities) 46 044 43 418 70 765

Income tax reported in profit and loss account

01.01.2022 –

31.03.2022

01.01.2021 –

31.03.2021

Current income tax, including: 25 724 64 418

withholding tax paid abroad 15 672 3

Change in deferred income tax (2 626) (59 522)

Income tax reported in profit and loss account 23 098 4 896

B. Other provisions

31.03.2022 31.12.2021 31.03.2021

Provisions for returns - - 130 508

Provisions for liabilities, including: 85 821 81 528 240 152

provisions for audits and reviews of financial statements 130 102 13

provisions for compensation dependent on financial result, and other

compensation

58 094 44 714 229 533

provisions for other expenses 27 597 36 712 10 606

Total, including: 85 821 81 528 370 660

short-term provisions 80 453 76 160 370 660

long-term provisions 5 368 5 368 -

Changes in other provisions

Provisions for

compensation

dependent on

financial result, and

other compensation

Other provisions Total

As of 01.01.2022 44 714 36 814 81 528

Provisions created during financial year 13 380 13 399 26 779

Provisions consumed - 22 414 22 414

Provisions dissolved - 72 72

As of 31.03.2022, including: 58 094 27 727 85 821

short-term provisions 58 094 22 359 80 453

long-term provisions - 5 368 5 368

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

C. Goodwill

Goodwill acquired in business combinations and acquisition of enterprises

31.03.2022 31.12.2021 31.03.2021

CD Projekt Red sp. z o.o. 39 147 39 147 39 147

Strange New Things (enterprise) 10 021 10 021 10 021

Total 49 168 49 168 49 168

Changes in goodwill

No changes in goodwill occurred between 1 January and 31 March 2022.

D. Business combinations

The Company did not merge with any other entity between 1 January and 31 March 2022.

E. Dividends paid out (or declared) and collected

The Company did not collect or pay out any dividends between 1 January and 31 March 2022.

On 25 May 2022 the Management Board of CD PROJEKT S.A. recommended to Annual General Meeting the amount of 100 739

thousand PLN to be divided among the shareholders in the form of the dividend in the amount of 1 PLN per one share.

F. Trade and other receivables

31.03.2022 31.12.2021 31.03.2021

Gross trade and other receivables 180 758 238 168 167 938

Impairment allowances 813 811 864

Trade and other receivables 179 945 237 357 167 074

from affiliates 4 953 5 179 3 882

from external entities 174 992 232 178 163 192

Changes in impairment allowances on receivables

Trade

receivables

Other

receivables

Total

OTHER ENTITIES

Impairment allowances as of 01.01.2022 79 732 811

Increases, including: 2 - 2

creation of allowances on past-due and contested receivables 2 - 2

Reductions - - -

Impairment allowances as of 31.03.2022 81 732 813

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Current and overdue trade receivables as of 31.03.2022

Total Not overdue

Days overdue

1 – 60 61 – 90 91 – 180 181 – 360 >360

AFFILIATES

gross receivables 4 939 3 429 456 - 1 054 - -

non-fulfillment ratio - 0% 0% 0% 0% 0% 0%

impairment

allowances as

determined by non-

fulfillment ratio

- - - - - - -

impairment

allowances as

individually assessed

- - - - - - -

total expected credit loss - - - - - - -

Net receivables 4 939 3 429 456 - 1 054 - -

Total Not overdue

Days overdue

1 – 60 61 – 90 91 – 180 181 – 360 >360

OTHER ENTITIES

gross receivables 64 688 64 332 231 2 - - 123

non-fulfillment ratio - 0% 0% 0% 0% 0% 0%

impairment

allowances as

determined by non-

fulfillment ratio

- - - - - - -

impairment

allowances as

individually assessed

81 - - - - - 81

total expected credit loss 81 - - - - - 81

Net receivables 64 607 64 332 231 2 - - 42

Total

gross receivables 69 627 67 761 687 2 1 054 - 123

impairment

allowances

81 - - - - - 81

Net receivables 69 546 67 761 687 2 1 054 - 42

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Other receivables

31.03.2022 31.12.2021 31.03.2021

Other gross receivables, including: 111 131 114 268 116 425

tax returns except corporate income tax 67 633 75 562 80 478

advance payments associated with expenditures on development

projects

32 480 30 435 24 303

advance payments for supplies 9 545 5 076 9 072

deposits 649 650 297

employee settlements 28 3 13

advance payments for PP&E and intangibles 10 34 120

settlements with management board members 8 7 8

consortium settlements - 1 659 1 329

advance payments for investment properties - 79 60

other 46 31 13

Impairment allowances 732 732 732

Other receivables, including: 110 399 113 536 115 693

short-term receivables 110 021 113 163 115 659

long-term receivables 378 373 34

G. Disclosure of financial instruments

Fair value of financial instruments per class

The Management Board of the Company has assessed each class of financial instruments held by the Company and reached the

conclusion that their carrying amount does not significantly differ from their corresponding fair value as of 31 March 2022,

31 December 2021 and 31 March 2021 respectively.

31.03.2022 31.12.2021* 31.03.2021

LEVEL 1

Assets estimated at fair value

Financial assets estimated at fair value through other

comprehensive income

177 736 228 661 213 219

foreign government bonds – CHF - - 16 644

foreign government bonds – EUR 24 731 24 517 25 311

foreign government bonds – USD 153 005 204 144 171 264

LEVEL 2

Liabilities estimated at fair value through financial result

Derivative instruments: 24 303 17 906 4 980

forward currency contracts – CHF - - (1 758)

forward currency contracts – EUR 598 455 624

forward currency contracts – USD 23 705 17 451 6 114

* adjusted

Financial instruments estimated at fair value are classified according to a three-tier fair value hierarchy:

Level 1 – quoted prices in active markets for identical assets or liabilities.

Level 2 – fair value estimated on the basis of observable market inputs.

Level 3 – fair value estimated on the basis of unobservable market inputs.

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Financial assets – classification and estimation

31.03.2022 31.12.2021 31.03.2021

Financial assets estimated at amortized cost 1 108 125 993 036 1 695 723

Other long-term receivables 378 373 34

Trade receivables 69 546 123 821 51 381

Cash and cash equivalents 691 584 345 795 1 485 826

Bank deposits (maturity beyond 3 months) 85 390 265 000 73

State Treasury bonds and bonds guaranteed by the State

Treasury

249 871 248 755 150 554

Loans granted 11 356 9 292 7 855

Financial assets estimated at fair value through other

comprehensive income

177 736 228 661 213 219

Foreign government bonds 177 736 228 661 213 219

Total financial assets 1 285 861 1 221 697 1 908 942

Financial liabilities – classification and estimation

31.03.2022 31.12.2021* 31.03.2021

Financial liabilities held at amortized cost 52 111 31 499 114 865

Trade liabilities 33 302 16 028 98 297

Other financial liabilities 18 809 15 471 16 568

Financial liabilities held at fair value through financial result 24 303 17 906 4 980

Derivative financial instruments 24 303 17 906 4 980

Total financial liabilities 76 414 49 405 119 845

* adjusted

In line with the requirements of IFRS 9 Financial Instruments the Company has carried out an analysis of the business model

concerning management of financial assets and of the characteristics of contractual cash flows for each component of the bond

portfolio. This led the Company to conclude the following:

 The purpose of the conducted investments in domestic and foreign treasury bonds is to hold to maturity and collect the

associated contractual cash flows;

 The investment mandates covering the foreign bond portfolio also permit sale of bonds prior to the expiration of their

respective redemption periods in the framework of the adopted portfolio management strategy;

 All purchased bonds pass the SPPI test.

As a result of the presented analysis, the purchased bonds were assigned to two distinct financial asset management models

identified by the entity which manages the bond portfolio. Polish State Treasury bonds and bonds guaranteed by the Polish State

Treasury – given the intent to hold them to maturity and collect the associated contractual cash flows – were estimated at amortized

cost. Foreign treasury bonds – given the investment mandate which permits management of portfolio by the Asset Manager – were

estimated at fair value through other comprehensive income.

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

H. Transactions with affiliates

Sales to affiliates Purchases from affiliates

01.01.2022 – 31.03.2022 01.01.2021 – 31.03.2021 01.01.2022 – 31.03.2022 01.01.2021 – 31.03.2021

SUBSIDIARIES

GOG sp. z o.o. 3 647 4 647 690 133

CD PROJEKT Inc. 63 117 3 072 1 482

CD PROJEKT Co., Ltd. (undergoing

liquidation)

- - - 939

Spokko sp. z o.o. 343 141 - -

CD PROJEKT RED STORE sp. z o.o. 339 312 9 74

CD PROJEKT RED Vancouver

Studio Ltd.

22 - 3 226 -

The Molasses Flood LLC - - 3 962 -

MANAGEMENT BOARD MEMBERS

Marcin Iwiński 1 10 - -

Adam Kiciński - 1 - -

Piotr Nielubowicz - 2 - -

Michał Nowakowski 1 6 - -

Adam Badowski 6 - - -

Paweł Zawodny 1 - - -

Jeremiah Cohn 1 - - -

Condensed Interim Separate Financial Statement of CD PROJEKT S.A. for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Receivables from affiliates Liabilities due to affiliates

31.03.2022 31.12.2021 31.03.2021 31.03.2022 31.12.2021 31.03.2021

SUBSIDIARIES

GOG sp. z o.o. 2 731 3 411 2 998 740 232 336

CD PROJEKT Inc. 486 511 1 121 984 948 542

CD PROJEKT Co., Ltd. (undergoing

liquidation)

- - - - - 311

Spokko sp. z o.o. 10 713 9 113 6 185 - - -

CD PROJEKT RED STORE sp. z o.o. 1 295 421 1 425 2 158 64

CD PROJEKT RED Vancouver

Studio Ltd.

1 076 1 008 - 874 164 -

The Molasses Flood LLC - - - 1 792 1 018 -

MANAGEMENT BOARD MEMBERS

Marcin Iwiński - - 5 - 20 1

Adam Kiciński - - - - 5 -

Michał Nowakowski 2 - 3 - 7 1

Adam Badowski 6 7 - - 5 -

Paweł Zawodny - - - 7 - -

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Statement of the Management Board of the parent

entity

With regard to the correctness of the condensed interim consolidated financial statement

Pursuant to the directive of the Finance Minister of 29 March 2018 regarding the publication of periodic and current reports by

issuers of securities and the conditions for regarding as equivalent the information required under the laws of a non-member state,

the Management Board of the parent entity hereby states that, to the best of its knowledge, this condensed interim consolidated

financial statement and comparative data contained herein have been prepared in accordance with all accounting regulations

applicable to the CD PROJEKT Group and that they constitute a true, unbiased and clear description of the finances and assets of

the Group as well as its current profit and loss balance.

This condensed interim consolidated financial statement conforms to International Financial Reporting Standards (IFRS) approved

by the European Union and in force as of 1 January 2022. Where the above mentioned standards are not applicable the statement

conforms to the Accounting Act of 29 September 1994 and to any secondary legislation based on said Act, as well as to the directive

of the Finance Minister of 29 March 2018 regarding the publication of periodic and current reports by issuers of securities and the

conditions for regarding as equivalent the information required under the laws of a non-member state.

Condensed Interim Consolidated Financial Statement of the CD PROJEKT Group for the period between 1 January and 31 March 2022

(all figures quoted in PLN thousands unless indicated otherwise)

The appended information constitutes an integral part of this financial statement.

Approval of financial statement

This financial statement covering the period between 1 January and 31 March 2022 was signed and approved for publication by

the Management Board of CD PROJEKT S.A. on 26 May 2022.

Warsaw, 26 May 2022

Adam Kiciński Marcin Iwiński Piotr Nielubowicz

President of the Board Vice President of the Board Vice President of the Board

Adam Badowski Michał Nowakowski Piotr Karwowski

Board Member Board Member Board Member

Paweł Zawodny Jeremiah Cohn Krystyna Cybulska

Board Member Board Member Chief Accountant