Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2019

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 20(all amounts in PLN thousand, unless

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

s are an integral part of these financial statements

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.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

CD PROJEKT Group - Selected financial data translated into EUR

PLN EUR

01.01.2022 –

30.09.2022

01.01.2021 –

30.09.2021

01.01.2022 –

30.09.2022

01.01.2021 –

30.09.2021

Net sales of products, services, goods for resale

and materials

623 507 615 109 133 001 134 937

Cost of sales of products, services, goods for resale

and materials

180 561 215 123 38 516 47 192

Operating profit/(loss) 234 565 138 250 50 035 30 328

Profit/(loss) before tax 265 641 132 267 56 664 29 015

Net profit/(loss) attributable to owners of

CD PROJEKT

S.A.

212 462 121 390 45 320 26 629

Net cash from operating activities 212 084 966 291 45 240 211 976

Net cash from investing activities (321 193) (334 339) (68 514) (73 344)

Net cash from financing activities (103 788) (504 606) (22 139) (110 696)

Net increase/(decrease) in cash and cash equivalents (212 897) 127 346 (45 413) 27 936

Number of shares (in thousands) 100 739 100 711 100 739 100 711

Net earnings/(loss) per share (in PLN) 2.11 1.21 0.45 0.26

Diluted earnings/(loss) per share (in PLN/EUR) 2.11 1.20 0.45 0.26

Book value per share (in PLN/EUR) 19.84 18.21 4.07 3.93

Diluted book value per share (in PLN/EUR) 19.83 18.20 4.07 3.93

Dividend declared or paid per share (in PLN/EUR) 1.00 5.00 0.21 1.10

PLN EUR

30.09.2022 31.12.2021 30.09.2022 31.12.2021

Total assets 2 230 805 2 158 735 458 090 469 351

Liabilities and provisions for liabilities (excluding accruals) 207 515 226 407 42 613 49 225

Non-current liabilities 35 584 36 112 7 307 7 851

Current liabilities 196 698 228 267 40 391 49 630

Equity 1 998 523 1 894 356 410 391 411 870

Share capital 100 739 100 739 20 686 21 903

The financial data presented above was translated into EUR as follows:

 Items of the consolidated income statement and the consolidated cash flow statement were translated at exchange rates

calculated as an arithmetic mean of the mid exchange rates announced by the National Bank of Poland for the euro applicable

as at the last day of each month in a given reporting period. These rates were, respectively, as follows: from 1 January to

30 September 2022: 4.688 PLN/EUR and from 1 January to 30 September 2021: 4.5585 PLN/EUR.

 Items of assets, liabilities and equity in the consolidated statement of financial position were translated at exchange rates

announced by the National Bank of Poland for the euro applicable on the last day of the reporting period. These rates were,

respectively, as follows: 4.8698 PLN/EUR as at 30 September 2022 and 4.5994 PLN/EUR as at 31 December 2021.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Table of contents

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

Interim condensed consolidated income statement ................................................................................................................................................ 7

Interim condensed consolidated statement of comprehensive income ........................................................................................................... 9

Interim condensed consolidated statement of financial position ...................................................................................................................... 10

Interim condensed statement of changes in consolidated equity ..................................................................................................................... 12

Interim condensed consolidated statement of cash flows ................................................................................................................................... 14

Notes to the interim condensed consolidated financial statements ........................................................................................................................ 17

General information.......................................................................................................................................................................................................... 18

Presentation of the Group .............................................................................................................................................................................................. 18

Consolidation policies ..................................................................................................................................................................................................... 19

Consolidated companies .......................................................................................................................................................................................... 19

Subsidiaries .................................................................................................................................................................................................................. 19

Basis of preparation of the interim condensed consolidated financial statements .................................................................................... 20

Going concern assumption ........................................................................................................................................................................................... 20

Compliance with the International Financial Reporting Standards................................................................................................................... 20

Amendments to standards or interpretations effective from 1 January 2022 applicable and adopted by the Group ............... 20

Functional currency and presentation currency ...................................................................................................................................................... 21

Functional currency and presentation currency ............................................................................................................................................... 21

Transactions and balances ...................................................................................................................................................................................... 21

Comparability of the financial statements and consistency of accounting policies ..................................................................................... 21

Presentation changes ............................................................................................................................................................................................... 22

Audit by the registered auditor .................................................................................................................................................................................... 22

Notes – operating segments of the CD PROJEKT Group .......................................................................................................................................... 23

Operating segments ....................................................................................................................................................................................................... 24

Information on individual operating segments ................................................................................................................................................. 25

Consolidated income statement by segments for the period from 01.07.2022 to 30.09.2022 ....................................................... 26

Consolidated income statement by segments for the period from 01.01.2022 to 30.09.2022 ........................................................ 27

Consolidated income statement by segments for the period from 01.07.2021 to 30.09.2021 ......................................................... 28

Consolidated income statement by segments for the period from 01.01.2021 to 30.09.2021 .......................................................... 29

Consolidated statement of financial position by segments as at 30.09.2022 ....................................................................................... 30

Consolidated statement of financial position by segments as at 30.06.2022 ....................................................................................... 32

Consolidated statement of financial position by segments as at 31.12.2021* ......................................................................................... 34

Description of the Issuer’s major achievements or failures in the third quarter of 2022 by operating segments ....................... 37

Factors affecting the Group’s future performance .......................................................................................................................................... 38

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

Impact on sales ........................................................................................................................................................................................................... 39

Risks associated with the current political and economic situation in Ukraine ...................................................................................... 39

Seasonality or cyclicality of the Group’s operations ....................................................................................................................................... 40

Key customers ............................................................................................................................................................................................................. 41

Notes – other explanatory notes to the interim condensed consolidated financial statements .................................................................... 42

Note 1. Description of those items affecting assets, liabilities, equity, net profit or loss and cash flows which

are not typical in terms of their type, size and impact .................................................................................................................................... 43

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

Note 3. Intangible assets and expenditure on development projects ...................................................................................................... 46

Note 4. Goodwill .......................................................................................................................................................................................................... 47

Note 5. Investment properties ................................................................................................................................................................................ 47

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

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

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

Note 9. Prepayments and deferred costs .......................................................................................................................................................... 50

Note 10. Deferred income tax ................................................................................................................................................................................. 51

Note 11. Provision for retirement and similar benefits ..................................................................................................................................... 52

Note 12. Other provisions ........................................................................................................................................................................................ 52

Note 13. Other liabilities ........................................................................................................................................................................................... 53

Note 14. Deferred income ....................................................................................................................................................................................... 53

Note 15. Information on financial instruments ................................................................................................................................................... 54

Note 16. Sales revenue ............................................................................................................................................................................................ 56

Note 17. Operating expenses ................................................................................................................................................................................. 57

Note 18. Other operating income and expenses ............................................................................................................................................. 58

Note 19. Finance income and costs ..................................................................................................................................................................... 59

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 20. Leases of low-value assets and short-term leases........................................................................................................................ 59

Note 21. Issue, redemption and repayment of debt and equity securities .............................................................................................. 60

Note 22. Dividend paid (or declared) and received ........................................................................................................................................ 60

Note 23. Transactions with related entities ....................................................................................................................................................... 60

Note 24. Unpaid loans or defaults on loan agreements in cases where no corrective measures were adopted by the

balance sheet date .................................................................................................................................................................................................... 63

Note 25. Changes in contingent liabilities or contingent assets which occurred after the end of the last financial year ........ 64

Note 26. Changes in the structure of the Group and Group companies during the reporting period............................................ 66

Note 27. Agreements that may result in future changes in the proportions of shares held by shareholders

and bondholders ........................................................................................................................................................................................................ 66

Note 28. Tax settlements ........................................................................................................................................................................................ 67

Note 29. Explanations to the condensed consolidated statement of cash flows .................................................................................. 68

Note 30. Cash flows and non-monetary changes resulting from changes in liabilities in financing activities .............................. 70

Note 31. Post balance sheet date events ........................................................................................................................................................... 72

Additional information ........................................................................................................................................................................................................... 73

Litigation pending ....................................................................................................................................................................................................... 74

Shareholding structure ................................................................................................................................................................................................... 75

Parent Company’s shares held by members of the Management and Supervisory Boards .............................................................. 76

Reference to published estimates .............................................................................................................................................................................. 76

Interim condensed separate financial statements of CD PROJEKT S.A. ............................................................................................................... 77

Interim condensed separate income statement ......................................................................................................................................................78

Interim condensed separate statement of comprehensive income ................................................................................................................ 79

Interim condensed separate statement of financial position ............................................................................................................................. 79

Interim condensed separate statement of changes in equity ............................................................................................................................. 81

Interim condensed separate statement of cash flows.......................................................................................................................................... 83

Comparability of the financial statements and consistency of accounting policies .................................................................................... 85

Changes in accounting policies ............................................................................................................................................................................ 85

Notes to the separate financial statements of CD PROJEKT S.A. .................................................................................................................... 86

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

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

C. Goodwill ...............................................................................................................................................................................................................87

D. Business combinations ...................................................................................................................................................................................87

E. Dividend paid (or declared) and received ................................................................................................................................................ 88

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

G. Information on financial instruments ......................................................................................................................................................... 90

H. Transactions with related entities............................................................................................................................................................... 92

Statement of the Management Board of the Parent Company ......................................................................................................................... 94

Approval of the financial statements ......................................................................................................................................................................... 95

Key financial data of the

CD PROJEKT Group

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed consolidated income statement

Note

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Sales revenue 245 514 623 507 144 463 615 109

Sales of products 16 203 189 489 057 104 262 471 248

Sales of services 16 308 1 622 420 4 132

Sales of goods for resale and materials 16 42 017 132 828 39 781 139 729

Cost of sales of products, services, goods for

resale and materials

79 200 180 561 52 927 215 123

Costs of products and services sold 17 48 602 85 640 23 217 111 126

Cost of goods for resale and materials sold 17 30 598 94 921 29 710 103 997

Gross profit/(loss) on sales 166 314 442 946 91 536 399 986

Selling expenses 17 54 379 155 720 55 322 186 505

Administrative expenses 17 17 867 53 156 23 231 77 418

Other operating income 18 9 819 15 204 4 915 8 768

Other operating expenses 18 6 783 14 692 2 261 6 575

(Impairment)/reversal of impairment

of financial instruments

(9) (17) (5) (6)

Operating profit/(loss) 97 095 234 565 15 632 138 250

Finance income 19 33 219 68 589 9 984 12 387

Finance costs 19 18 276 37 513 9 216 18 370

Profit/(loss) before tax 112 038 265 641 16 400 132 267

Income tax expense 10 13 334 53 179 58 10 877

Net profit/(loss) 98 704 212 462 16 342 121 390

Net profit/(loss) attributable to owners of

CD PROJEKT S.A.

98 704 212 462 16 342 121 390

Net earnings/(loss) per share (in PLN) - - - -

Basic for the reporting period 0.98 2.11 0.16 1.21

Diluted for the reporting period 0.98 2.11 0.16 1.20

A significant increase in the amount of the Group’s Sales in the third quarter of 2022 in relation to the reference period was mainly

due to a good reception of the Cyberpunk EDGERUNNERS update 1.6 which preceded the release on Netflix of the Cyberpunk:

EDGERUNNERS anime series. The update included additional content for the game related to the series (side quests, locations,

items, an arcade game) and a number of updates and technical improvements to the game. These events supported by a marketing

and communication campaign contributed to an increase in the Sales of products in the CD PROJEKT RED segment, mainly

resulting from:

a) royalties in respect of the sales of the Cyberpunk 2077 game;

b) recognition of income from licence fees in connection with the release of the CYBERPUNK: EDGERUNNERS series in

September;

c) royalties in respect of the sales of The Witcher 3: Wild Hunt game with the Hearts of Stone and Blood and Wine extensions;

d) revenues generated by the Gwent: The Witcher Card Game project;

e) income from licence fees associated with the games The Witcher 2: Assassins of Kings, The Witcher, Thronebreaker: The

Witcher Tales, and income from licence fees on CD PROJEKT RED studio franchises.

In the reporting period, the Group also recognized an increase in the Sales of goods for resale and materials, which comprised

mainly the revenues from the digital distribution of games from third party providers to end customers through the GOG.COM

platform.

In the item Cost of products and services sold the Group mainly recognizes amortization of the expenditure on development work

relating to the games developed by CD PROJEKT RED. Nevertheless, the amount of this cost item increased in relation to the

reference period due to the fact that the total production costs of the CYBERPUNK: EDGERUNNERS series were recognized on

a one-off basis in the reporting period with no amortization and depreciation costs relating to the GWENT game recognized in the

comparative period.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

In accordance with the Group’s accounting policy, the expenditure on development projects which allow the reliable estimation of

the sales volume and value is amortized by the Group in line with the expected consumption of economic benefits, which depends

on the number of copies sold. Otherwise the Group amortizes the project value under the straight-line method.

The following principles were adopted for the games whose development cost amortization was recognized in the third quarter of

2022:

a) 40% of the total expenditure on Cyberpunk 2077 was recognized in the quarter of its release (the fourth quarter of 2020), and

the remaining 60% will be recognized over the next 5 years of the asset’s use (3% per quarter);

b) the expenditure on the update of Cyberpunk 2077 to new generation consoles Xbox Series X|S and PlayStation 5 is

recognized on a straight-line basis from the period of its release up to the last period in which the expenditure on the base

game is recognized;

c) the expenditure on The Witcher 3: Wild Hunt for Nintendo Switch (released in October 2019) was charged to the income

statement over three years from the end of development on the basis of the expected distribution of future revenues estimated

based on the sales of historical products.

The Cost of goods for resale and materials sold mainly corresponds to the cost of sales of goods for resale on the GOG.COM

platform, the cost of sales of physical game components of the CD PROJEKT RED segment and, to a lesser extent, the cost of sales

of goods for resale to end customers through the CD PROJEKT RED GEAR shop.

In the third quarter of 2022, the Selling expenses comprised mainly the costs of publishing activities, ongoing advertising and

promotion of the Company’s own titles, including remuneration (both fixed and performance-based) of the internal publishing teams,

the costs of performance-based remuneration of the companies’ Management Boards, and other external services relating to the

promotion of sales. The aforementioned costs are recognized in the CD PROJEKT RED segment.

Another significant group of selling expenses comprised the costs of servicing the published titles. The main items of such costs in

the reporting period were the costs of servicing the game Cyberpunk 2077 and the costs of maintenance and development of

GWENT: The Witcher Card Game. The servicing costs were reduced significantly in relation to the third quarter of 2021, mainly due

to a decrease in the costs of preparing Cyberpunk 2077 updates.

This category also includes the costs of marketing activities relating to the GOG.COM portal (recognized in the GOG.COM segment),

as well as the expenses on development and conducting sales through the portal.

In the item Administrative expenses, the CD PROJEKT Group companies recognize:

a) fixed and performance-based remuneration of administrative teams and the costs of external services classified in this

category, which show a consistent upward trend in line with the Group’s development;

b) the fixed part of the remuneration of the companies’ Management Boards;

c) the cost of valuation of the entitlements granted under the incentive plan for the years 2020-2025, which decreased in relation

to the reference period due to a negative assessment of the possibility of achieving the performance goals in the period of

the plan’s duration and the change in the estimates introduced by the Management Board as at the end of 2021;

d) the costs incurred on future games in the initial period (the research phase) before the beginning of project execution (the

development phase) and capitalization as part of the Expenditure on development projects in Non-current assets, which are

significantly lower than in the reference period due to the fact that the research phase was completed with respect to two

projects and the development stage began.

In the reporting period, Other operating income and expenses comprised mainly income from rental of office space (and the

related costs of maintenance) generated by the CD PROJEKT RED in the real estate complex at ul. Jagiellońska 74 and 76 in

Warsaw, proceeds from the subsidies received, as well as income and expenses resulting from one-off events, including mainly the

Promised Land 2022 event in Łódź and marketing barter agreements (which were responsible for an increase in the value of this

item) and income relating to writing off past liabilities of the GOG.COM segment.

In the reporting period, the Group recognized an excess of Finance income over Finance costs, which was mainly due to an

increase in interest income resulting from the global interest rate growth, but also due to generating net foreign exchange gains

and hedging transactions relating to the foreign exchange risk associated with holding Treasury bonds denominated in foreign

currencies.

The corporate income tax recognized in the income statement for the third quarter of the current year and the effective tax rate

increased significantly in relation to the third quarter of 2021. This was mainly due to the fact that a part of the tax collected in other

jurisdictions on licence fees payable to the Parent Company (withholding tax) was recognized in corporate income tax.

Having collected the documents confirming the amounts of withholding tax and the fact of its payment abroad, the Parent Company

deducted the foreign withholding tax from the Polish corporate income tax, which (in a significant part) was calculated based on

a preferential IP Box tax rate (5%), and charged the excess to the income statement.

The consolidated Net profit of the Group generated in the third quarter of 2022 of PLN 98 704 thousand was significantly higher

than in the third quarter of the previous year, mainly due to a considerable increase in the revenues of the CD PROJEKT RED

segment.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed consolidated statement of

comprehensive income

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Net profit/(loss) 98 704 212 462 16 342 121 390

Other comprehensive income subject to reclassification

to gains or losses after specific conditions have been

met

(4 402) (10 841) 1 876 3 680

Exchange differences on measurement of foreign

operations

1 896 3 448 83 109

Measurement of derivative financial instruments – fair

value through other comprehensive income, taking

into account the tax effect

(6 298) (14 289) 1 793 3 571

Other comprehensive income not subject to

reclassification to gains or losses

- - - -

Total comprehensive income 94 302 201 621 18 218 125 070

Total comprehensive income attributable to non-

controlling interests

- - - -

Total comprehensive income attributable to owners of

CD PROJEKT S.A.

94 302 201 621 18 218 125 070

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed consolidated statement of financial

position

Note 30.09.2022 30.06.2022 31.12.2021*

NON-CURRENT ASSETS 1 092 237 1 039 127 905 846

Property, plant and equipment 2 131 431 129 155 119 588

Intangible assets 3 69 952 69 764 58 393

Expenditure on development projects 3 449 468 434 055 350 195

Investment properties 5 42 961 43 655 44 634

Goodwill 3.4 56 438 56 438 56 438

Shares in non-consolidated subsidiaries 72 195 67 055 38 520

Prepayments and deferred costs 9 29 619 24 247 11 434

Other financial assets 8.15 197 509 173 589 178 540

Deferred tax assets 10 41 877 40 435 47 418

Other receivables 7.15 787 734 686

CURRENT ASSETS 1 138 568 1 157 539 1 252 889

Inventories 6 14 492 15 136 15 886

Trade receivables 7.15 147 246 63 220 125 293

Current income tax receivable 1 332 2 454 98

Other receivables 7 48 536 51 411 113 498

Prepayments and deferred costs 9 28 067 20 717 13 763

Other financial assets 8.15 289 662 319 572 307 765

Bank deposits over 3 months 15 410 544 - 265 000

Cash and cash equivalents 15 198 689 685 029 411 586

TOTAL ASSETS 2 230 805 2 196 666 2 158 735

* restated data

The item Expenditure on development projects, which comprises the expenditure on the production of games, new technologies

and other products of a similar nature incurred and deferred by the Group, represented the biggest share of the balance of the

Group's Non-current assets as at the end of the third quarter of 2022 and significantly contributed to its increase. The increase in

this item in the reporting period was due to the fact that the expenditure incurred by the CD PROJEKT RED segment on the

production of future games exceeded the amortization of completed projects.

Moreover, the balance of Property, plant and equipment (constituting a part of non-current assets) increased in the reporting

period due to the expenditure on construction work at the CD PROJEKT campus in Warsaw (fixed assets under construction).

An increase in the balance of Shares in non-consolidated subordinated entities was mainly due to an increase in the capital of

CD PROJEKT RED Vancouver Studio Ltd. and translation of the value of shares in subsidiaries of CD PROJEKT Inc. into the

presentation currency of the CD Projekt S.A. Group.

An increase in the balance of Other long-term financial assets is due to the conversion of some of the investments in Treasury

bonds maturing in the reporting period, which had previously been recognized as Short-term current assets, to newly issued bonds

with maturities exceeding 12 months year from 30 September 2022. The total balance of Other financial assets (both long- and

short-term) did not change significantly.

An increase in the consolidated balance of Prepayments and deferred costs, both short- and long-term, recognized as at the end

of the analysed period, was mainly due to the new distribution contracts signed in the GOG-COM segment and the resulting

recognition of minimum guarantees, i.e. the advances and prepayments provided by GOG.COM to the suppliers in association with

licensing royalties for games distributed on the GOG.COM platform.

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

CD PROJEKT RED in relation to development projects, goods for resale and services.

The reported increase in the consolidated balance of Trade receivables in relation to the balance as at 30 June 2022 was mainly

due to an increase in sales in the current period which naturally resulted in an increase in the receivables in respect of royalties in

the CD PROJEKT RED segment, which were not settled as at the balance sheet date.

As at 30 September 2022, the aggregate value of Cash and cash equivalents, Bank deposits (maturity beyond 3 months) and

liquid financial assets in the form of Treasury bonds held by the Group (recognized as short- and long-term Other financial assets)

was PLN 1 095 722 thousand.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 30.09.2022 30.06.2022 31.12.2021

EQUITY 1 998 523 1 903 244 1 894 356

Equity of the shareholders of CD PROJEKT S.A. 1 998 523 1 903 244 1 894 356

Share capital 21 100 739 100 739 100 739

Supplementary capital 1 530 035 1 560 842 1 425 647

Share premium 115 909 115 909 115 909

Other reserves 36 990 42 323 47 994

Foreign exchange differences on translation 5 039 3 143 1 591

Retained earnings (2 651) (33 458) (6 432)

Net profit (loss) for the period 212 462 113 746 208 908

Non-controlling interests - - -

NON-CURRENT LIABILITIES 35 584 32 729 36 112

Other financial liabilities 15 23 919 23 614 21 080

Other liabilities 13 2 680 2 740 2 860

Deferred income 14 4 135 5 504 6 424

Provision for retirement and similar benefits 11 380 380 380

Other provisions 12 4 470 491 5 368

CURRENT LIABILITIES 196 698 260 693 228 267

Other financial liabilities 15 38 591 29 724 25 802

Trade payables 15 67 726 64 042 53 380

Current income tax liabilities 6 468 - 24 446

Other liabilities 13 8 879 110 322 10 042

Deferred income 14 20 632 17 682 31 548

Provision for retirement and similar benefits 11 7 7 7

Other provisions 12 54 395 38 916 83 042

TOTAL LIABILITIES AND EQUITY 2 230 805 2 196 666 2 158 735

As at the end of the third quarter of 2022, the CD PROJEKT Group’s Equity amounted to PLN 1 998 523 thousand, i.e. PLN 95 279

thousand more than as at 30 June 2022, which was mainly due to the Net profit for the reporting period.

An increase in both long- and short-term Other financial liabilities in the reporting period was mainly due to the revaluation of the

instruments hedging currency risk associated with holding foreign Treasury bonds denominated in foreign currencies. This item

also includes liabilities in respect of the perpetual usufruct of land relating to the Jagiellońska 74 and Jagiellońska 76 facilities in

Warsaw and liabilities in respect of the deferred payment of a part of the purchase price for shares in The Molasses Flood.

An increase in the consolidated balance of Other provisions (both long- and short-term) in the third quarter of 2022 was mainly

due to an increase in the provision for remuneration dependent on current-period earnings.

An increase in the balance of the Group’s Trade payables resulted from the ongoing operations of the CD PROJEKT RED segment.

This item also includes the liabilities of the GOG.COM segment, mainly in respect of royalties relating to the sales executed in the

current period.

The balance of the Group’s Other liabilities in the reporting period mainly comprised current tax (VAT, PIT, withholding tax) and

social insurance liabilities. A decrease in this balance compared with the end of June 2022 is a result of the dividend paid by

CD PROJEKT S.A. during the reporting period.

The balance of Deferred income of the CD PROJEKT Group as at the end of September 2022 comprised mainly:

 CD PROJEKT RED – future period sales – minimum guarantees, i.e. licensing royalties received 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 – pre-orders for games scheduled for release in future reporting periods.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed statement of changes in consolidated equity

Share capital

Supplementary

capital

premium

Other

reserves

Foreign

exchange

differences

translation

Retained

earnings

Net profit

(loss) for the

period

Equity

attributable

to owners of

CD PROJEKT

S.A.

Non-

controlling

interests

Total equity

01.01.2022 – 30.09.2022

Equity

as at 01.01.2022

100 739 1 425 647 115 909 47 994 1 591 202 476 - 1 894 356 - 1 894 356

Costs of the

incentive plan

- - - 3 285 - - - 3 285 - 3 285

Appropriation of the

net profit/offset of

loss

- 104 388 - - - (104 388) - - - -

Payment of

dividend

- - - - - (100 739) - (100 739) - (100 739)

Total

comprehensive

income

- - - (14 289) 3 448 - 212 462 201 621 - 201 621

Equity

as at 30.09.2022

100 739 1 530 035 115 909 36 990 5 039 (2 651) 212 462 1 998 523 - 1 998 523

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Share capital

Supplementary

capital

premium

Other

reserves

Foreign

exchange

differences

translation

Retained

earnings

Net profit

(loss) for the

period

Equity

attributable

to owners of

CD PROJEKT

S.A.

Non-

controlling

interests

Total equity

01.01.2021 – 30.09.2021

Equity

as at 01.01.2021

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

Corrections of

errors

- - - - - (4 179) - (4 179) - (4 179)

Equity, as adjusted

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

Costs of the

incentive plan

- - - 26 820 - - - 26 820 - 26 820

Appropriation of the

net profit/offset of

loss

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

Share-based

payments

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

Payment of

dividend

- - - - - (503 694) - (503 694) - (503 694)

Total

comprehensive

income

- - - 3 571 109 - 121 390 125 070 - 125 070

Equity

as at 30.09.2021

100 739 1 425 647 115 909 75 069 1 200 (6 432) 121 390 1 833 522 - 1 833 522

The Group adjusted the calculation of the deferred tax asset as at 31 December 2020 by reclassifying a part of deductible temporary differences from the category of taxed at 19% to taxed at 5%.

As a result of the adjustment, equity decreased by PLN 4,179 thousand.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed consolidated statement of cash flows

Note

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

OPERATING ACTIVITIES

Net profit/(loss) 98 704 212 462 16 342 121 390

Total adjustments: 29 (42 149) (18 150) 75 887 841 713

Depreciation and amortization of property,

plant and equipment, intangible assets,

expenditure on development projects and

investment properties

3 425 10 771 4 396 13 284

Amortization of development projects

recognized as cost of goods sold

48 325 84 541 22 876 69 383

Foreign exchange gains/(losses) (19 888) (24 769) (9 705) (11 719)

Interest and participation in profits (9 168) (26 719) (17) 332

(Gains)/Losses on investing activities 13 796 15 282 9 460 14 111

Increase/(Decrease) in provisions 13 275 (36 914) (49 463) (285 827)

(Increase)/Decrease in inventories 644 1 394 339 (9 607)

(Increase)/Decrease in receivables (87 658) (15 016) 88 877 1 118 518

Increase/(Decrease) in liabilities, excluding

loans and borrowings

4 762 12 285 12 747 (76 816)

Change in other assets and liabilities (11 201) (45 874) (12 971) (18 152)

Other adjustments 1 539 6 869 9 348 28 206

Cash from operating activities 56 555 194 312 92 229 963 103

Income tax expense 6 612 21 823 375 11 191

Withholding tax paid abroad 6 722 31 356 (317) (314)

Income tax (paid)/refunded (454) (35 407) (6 456) (7 689)

Net cash from operating activities 69 435 212 084 85 831 966 291

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021*

INVESTING ACTIVITIES

Inflows 92 054 553 821 506 239 764

Sale of intangible assets and property, plant

and equipment

260 274 6 14

Repayment of loans granted - 12 202 - -

Sale of shares in a subsidiary - 76 19 19

Expiry of bank deposits over 3 months - 265 000 - 164 368

Redemption of bonds 84 853 257 943 - 66 628

Interest on bonds 1 147 3 250 445 725

Inflows from execution of forward contracts - - - 7 887

Interest received on deposits 5 794 14 811 - 41

Other inflows from investing activities - 265 36 82

Outflows 546 181 875 014 63 738 574 103

Acquisition of intangible assets and

property, plant and equipment

10 333 35 953 5 636 23 755

Expenditure on development projects 55 831 145 542 26 530 135 557

Acquisition of investment properties and

capitalization of expenditure

- 145 595 2 000

Loans granted - 3 400 600 4 340

Acquisition of a subsidiary - - 7 679 7 679

Contribution to the capital of a subsidiary 2 308 28 318 - -

Purchase of bonds and cost of their

purchase

57 380 225 500 22 623 350 699

Outflows from execution of forward

contracts

9 785 25 548 75 -

Other outflows on investing activities - 64 - -

Placement of bank deposits over 3 months 410 544 410 544 - 50 073

Net cash from investing activities (454 127) (321 193) (63 232) (334 339)

FINANCING ACTIVITIES

Inflows 10 30 10 2 179

Net proceeds from the sale of shares and

issue of shares in the execution of the

incentive plan

- - - 2 149

Payment of finance lease liabilities 10 30 10 30

Outflows 101 658 103 818 1 028 506 785

Dividends and other distributions to

shareholders

100 739 100 739 - 503 694

Payment of lease liabilities 782 2 675 927 2 650

Interest paid 137 404 101 441

Net cash used in financing activities 30 (101 648) (103 788) (1 018) (504 606)

Net increase/(decrease) in cash and cash

equivalents

(486 340) (212 897) 21 581 127 346

Change in cash and cash equivalents in the

balance sheet

(486 340) (212 897) 21 581 127 346

Cash and cash equivalents at the beginning of

the period

685 029 411 586 669 100 563 335

Cash and cash equivalents at the end of the

period

198 689 198 689 690 681 690 681

restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

In the third quarter of 2022, the CD PROJEKT Group recognized positive Net cash flows from operating activities of PLN 69 435

thousand, i.e. PLN 16 396 thousand less than in the reference period.

The consolidated net profit/ (loss) was adjusted for:

I. Non-cash items (a net increase):

 Amortization and depreciation;

 Amortization of development projects recognized as cost of sales, comprising mainly the costs of production of the

Cyberpunk: EDGERUNNERS anime series (which were charged to the income statement on a one-off basis) and

amortization of development costs related to Cyberpunk 2077, together with its next-gen release for Xbox Series

X|S and PlayStation 5;

 Foreign exchange gain/(loss) – a decrease resulting from the valuation of foreign Treasury bonds;

 Gain/(loss) on investing activities – an increase resulting from transactions on bonds and derivative financial

instruments;

 Change in provisions – an increase resulting mainly from a change in the amount of other provisions;

 Other adjustments – an increase resulting mainly from elimination of the settlement of the incentive plan costs and

adjustments of amortization and depreciation recognized in the cost of sales and operating expenses;

II. Items relating to changes in current assets and short-term liabilities (a net decrease):

 Change in inventories – an increase in the balance of flows resulting from a decrease in inventory;

 Change in receivables – a decrease in the balance of flows resulting mainly from an increase in the receivables of

the CD PROJEKT RED segment as at the end of the third quarter of 2022;

 Change in liabilities excluding loans and borrowings – an increase in the balance of flows;

 Change in other assets and liabilities – a decrease in the balance of flows, mainly as a result of an increase in the

balance of minimum guarantees contractually agreed with suppliers by GOG.COM in the reporting period;

III. An item recognized elsewhere in the cash flow statement: Interest and profit sharing, which caused a decrease in cash

flows from operating activities;

IV. Difference between the amount of income tax reported in the income statement and income tax actually paid in the third

quarter of 2022, including withholding tax settlement (an increase).

In the reporting period, the Group companies generated a negative balance of Net cash flows from investing activities, where the

investments in assets (including financial assets) exceeded the current inflows received from the redemption of Treasury bonds

and interest. During the period, the following outflows on investing activities occurred:

 An increase in the balance of bank deposits over 3 months and investments in Treasury bonds and hedging

instruments;

 Expenditure on development projects, mainly relating to the projects executed by the CD PROJEKT RED segment;

 Purchase of intangible assets and property, plant and equipment;

 Additional capital contribution to a subsidiary CD PROJEKT RED Vancouver Studio Ltd.

The balance of Net cash flows from financing activities was negative mainly due to a payment of dividend to the owners of

CD PROJEKT S.A.

Overall, in the third quarter of 2022 the CD PROJEKT Group generated negative Net cash flows of PLN 486 340 thousand which

resulted mainly from an increase in the balance of deposits with banks with maturities exceeding 3 months of PLN 410 544 thousand

and the payment of dividend of PLN 100 739 thousand.

Notes to the interim condensed

consolidated financial statements

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

General information

Name of reporting entity:

CD PROJEKT S.A.

(there have been no changes in the name of the reporting entity since the end of

the prior reporting period)

Legal form: a joint stock company (spółka akcyjna)

Registered office: ul. Jagiellońska 74, 03-301 Warsaw

Country of registration: Poland

Core activities:

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

operates in the CD PROJEKT RED and GOG.COM segments.

Principal place of business: Warsaw

Registration body: District Court in Warsaw, 14th Business Department of the National Court Register.

Statistical number REGON: 492707333

Tax identification number NIP:

7342867148

Number in the BDO register (national

waste management database):

000141053

Duration of the Group: Unspecified

Name of parent entity: CD PROJEKT S.A.

Name of the top parent of the group: CD PROJEKT S.A.

Presentation of the Group

Subsidiaries

CD PROJEKT S.A.

GOG sp. z o.o. CD PROJEKT Inc.

The Molasses Flood

LLC

CD PROJEKT SILVER

Inc

Spokko sp. z o.o.

CD PROJEKT RED

STORE sp. z o.o.

CD PROJEKT

RED Vancouver

Studio Ltd.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Consolidation policies

Consolidated companies

% share in capital % share of voting rights consolidation method

CD PROJEKT S.A. parent entity - -

GOG sp. z o.o. 100% 100% acquisition accounting

CD PROJEKT Inc. 100% 100% acquisition accounting

Spokko sp. z o.o. 87.6% 87.6% not consolidated

CD PROJEKT RED STORE sp. z o.o. 100% 100% acquisition accounting

CD PROJEKT RED Vancouver Studio Ltd. 100% 100% not consolidated

The Molasses Flood LLC 60% 60% not consolidated

CD PROJEKT SILVER Inc. 100% 100% not consolidated

In accordance with the accounting policy adopted by the Group, the parent entity does not have to consolidate a subsidiary using

the acquisition accounting method, if:

 the subsidiary’s share in the parent entity’s total assets does not exceed 2%;

 the share in the parent entity’s revenue from sales and financial transactions does not exceed 1%;

where those transactions between the subsidiary and its parent entity which would be eliminated during consolidation are not taken

into account when determining whether the said thresholds have been exceeded.

In total, the financial data of the subsidiaries excluded from consolidation cannot exceed:

 5% of the share in the parent entity’s total assets;

 2% of the share in the parent entity’s revenue from sales and financial transactions;

where those transactions between the subsidiary and its parent entity which would be eliminated during consolidation are not taken

into account when determining whether the said thresholds have been exceeded.

Subsidiaries

Subsidiaries are all and any entities over which the Group has control which manifests itself by, simultaneously:

 having power, consisting of having substantive rights that give the Group the current ability to direct the relevant activities, i.e.

those activities which significantly affect the entity’s financial results;

 being exposed or having rights to variable returns, consisting of having the potential to change the financial results of the

Group depending on the results of the subsidiary;

 having the ability to use the power exercised to affect its returns from the subsidiary by using its power in order to affect the

financial results attributable to the Group resulting from the involvement in the subsidiary

Subsidiaries are fully consolidated from the date on which the Group assumed control over them. They cease to be consolidated

from the date that control ceases.

Revenue and costs, receivables and payables and unrealized gains on transactions between Group companies are eliminated for

the purposes of the consolidated financial statements. Unrealized losses are also eliminated, unless the transaction is an impairment

indicator of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency

with the accounting policies adopted by the Group.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Basis of preparation of the interim condensed

consolidated financial statements

These interim condensed consolidated financial statements have been prepared in accordance with International Accounting

Standard No. 34 Interim Financial Reporting endorsed by the EU (“IAS 34”).

The interim condensed consolidated financial statements do not comprise all the information and disclosures which are required in

annual financial statements and should be read jointly with the consolidated financial statements of the Group for the year ended

31 December 2021 approved for publication on 14 April 2022.

Going concern assumption

These interim condensed consolidated financial statements have been prepared based on the assumption that the Group and the

Parent Company will continue in operation as a going concern in the foreseeable future, i.e. in the period of at least 12 months after

the balance sheet date.

As at the date of signing these financial statements, the Management Board of the Parent Company has not identified any facts or

circumstances which would indicate any threats to the Group continuing in operation as a going concern for a period of 12 months

after the end of the reporting period as a result of intended or forced discontinuation or significantly curtailing its existing operations.

By the date of preparing the consolidated financial statements for the period from 1 July to 30 September 2022, the Management

Board of the Parent Company did not become aware of any events which should have been but were not recognized in the

accounting records for the reporting period. At the same time, there were no significant prior year events undisclosed in these

financial statements.

Compliance with the International Financial Reporting

Standards

These interim condensed consolidated financial statements have been prepared in accordance with International Accounting

Standard No. 34 Interim Financial Reporting and in accordance with the relevant International Financial Reporting Standards (IFRS)

applicable to interim financial reporting, approved by the International Accounting Standards Board (IASB) and the International

Financial Reporting Interpretations Committee (IFRIC) as applicable as at 30 September 2022.

The Group intends to apply changes to IFRS published but not yet binding by the date of publication of these interim condensed

consolidated financial statements in accordance with their effective dates. Information on standards and interpretations adopted

for the first time, early adoption of the standards, standards effective on or after 1 January 2022 and the assessment of the impact

of IFRS changes on the future consolidated financial statements of the Group have been presented in the second part of the

Consolidated Financial Statements for 2021.

Amendments to standards or interpretations effective from 1 January 2022

applicable and adopted by the Group

 Amendments to IFRS 3 Business combinations, IAS 16 Property, Plant and Equipment, IAS 37 Provisions, Contingent Liabilities

and Contingent Assets and Annual Improvements to IFRS 2018-2020 (IFRS 1, IFRS 9, IFRS 16 and IAS 41) – approved on 28 June

2021, applicable to periods beginning on or after 1 January 2022.

Standards published and endorsed by the EU which are not yet effective and their impact on the

Group’s financial statements

The Management Board analysed the impact of the application of the new standards on future financial statements. When approving

these financial statements, the Group did not apply the following standards, amendments and interpretations published and

endorsed by the EU, but not yet effective:

 IFRS 17 Insurance Contracts – approved on 19 November 2021, applicable to reporting periods beginning on or after 1 January

2023,

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

 Amendments to IAS 1 and Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2 (published

on 12 February 2021) – approved on 2 March 2022 and applicable to annual periods beginning on or after 1 January 2023,

 Amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – approved on 2 March 2022 and

applicable to periods beginning on or after 1 January 2023,

 Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction – approved on

11 August 2022 and applicable to periods beginning on or after 1 January 2023,

 Amendments to IFRS 17 Insurance Contracts concerning Initial Application of IFRS 17 and IFRS 9 - Comparative Information –

approved on 8 September 2022 and applicable to periods beginning on or after 1 January 2023.

The Group does not expect the introduction of these amendments to have a material impact on the accounting policies adopted

by the Group with regard to the Group’s operations or its financial results.

Standards and interpretations adopted by the IASB but not yet endorsed by the EU

When approving these financial statements, the Group did not apply the following standards, amendments and interpretations

which have not yet been endorsed by the EU:

 Amendment 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 2024,

 Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback – applicable to reporting periods beginning on or

after 1 January 2024.

The Group is analysing the estimated impact of the standards and amendments listed above on the Group’s financial statements.

Functional currency and presentation currency

The functional currency of the Group and the Parent Company and the reporting currency of these financial statements is the Polish

zloty (PLN). Unless stated otherwise, all data is presented in thousands of Polish zlotys (PLN ‘000).

Transactions and balances

Transactions denominated in foreign currencies are translated into the functional currency at the exchange rate as at the transaction

date. Foreign exchange gains and losses on the settlement of these transactions and the translation of monetary assets and

liabilities as at the balance sheet date are recognized in the income statement, unless they are deferred in equity, when they qualify

for recognition as cash flow hedges and hedges of a net investment.

Comparability of the financial statements and

consistency of accounting policies

The accounting policies applied in these interim condensed consolidated financial statements, material judgments made by the

Management Board with regard to the accounting policies applied by the Group and the main sources of estimating uncertainties

are consistent, in all material respects, with the policy adopted for preparing the annual consolidated financial statements of the

CD PROJEKT Group for 2021, with the exception of changes in accounting policies and presentation changes described below.

These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial

statements for the year ended 31 December 2021.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Presentation changes

In these interim condensed consolidated financial statements for the period from 1 July to 30 September 2022 changes were

introduced in the presentation of selected financial data. In order to ensure comparability of the financial data in the reporting

period, presentation of the data as at 30 September 2021 and as at 31 December 2021 was changed. The data is presented after

the following changes:

 In the statement of financial position as at 31 December 2021, presentation of some of the land held by the Group changed.

Consequently, the following items changed:

- Property, plant and equipment – an increase of PLN 4,354 thousand

- Investment properties – a decrease of PLN 4,354 thousand.

The change did not affect the net profit or loss and equity.

 In the cash flow statement for the period from 1 January 2021 to 30 September 2021, presentation of interest received on

deposits was changed. Consequently, the following items changed:

- Other inflows from investing activities – a decrease of PLN 41 thousand

- Interest on deposits – an increase of PLN 41 thousand.

Audit by the registered auditor

These interim condensed consolidated financial statements, including selected elements of the interim condensed separate

financial statements were not audited or reviewed by an independent registered auditor.

Notes – operating segments of the

CD PROJEKT Group

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Operating segments

Presentation of the financial statements taking into account operating segments

The scope of the financial information provided on the Group’s operating segments is consistent with the requirements of IFRS 8.

The segments’ results are determined based on their net profits.

Description of differences in the basis for determining segments and the profit or loss of a segment

compared with the last annual consolidated financial statements

The Group did not make any changes in determining segments or in the measurement of the profits or losses of the individual

segments in relation to the financial statements for the year ended 31 December 2021.

There are no differences between the measurement of the assets, liabilities, profits and losses of the Group’s reporting segments.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Information on individual operating segments

Continuing operations

Consolidation

eliminations

Total continuing

operations

CD PROJEKT RED GOG.COM

01.07.2022 – 30.09.2022

Sales revenue 205 157 44 022 (3 665) 245 514

from external customers 201 560 43 954 - 245 514

between segments 3 597 68 (3 665) -

Net profit/(loss) of the

segment

97 377 1 306 21 98 704

Continuing operations

Consolidation

eliminations

Total continuing

operations

CD PROJEKT RED GOG.COM

01.01.2022 – 30.09.2022

Sales revenue 500 722 132 773 (9 988) 623 507

from external customers 490 938 132 569 - 623 507

between segments 9 784 204 (9 988) -

Net profit/(loss) of the

segment

210 865 1 659 (62) 212 462

Continuing operations

Consolidation

eliminations

Total continuing

operations

CD PROJEKT RED GOG.COM

01.07.2021 – 30.09.2021

Sales revenue 104 770 41 784 (2 091) 144 463

from external customers 102 771 41 692 - 144 463

between segments 1 999 92 (2 091) -

Net profit/(loss) of the

segment

21 081 (4 752) 13 16 342

Continuing operations

Consolidation

eliminations

Total continuing

operations

CD PROJEKT RED GOG.COM

01.01.2021 – 30.09.2021

Sales revenue 476 710 148 117 (9 718) 615 109

from external customers 467 220 147 889 - 615 109

between segments 9 490 228 (9 718) -

Net profit/(loss) of the

segment

130 676 (9 210) (76) 121 390

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Consolidated income statement by segments for the period from 01.07.2022 to 30.09.2022

CD PROJEKT RED GOG.COM Consolidation eliminations Total

Sales revenue 205 157 44 022 (3 665) 245 514

Sales of products 201 745 - 1 444 203 189

Sales of services 576 68 (336) 308

Sales of goods for resale and materials 2 836 43 954 (4 773) 42 017

Cost of sales of products, services, goods for resale and materials 50 916 31 672 (3 388) 79 200

Costs of products and services sold 48 657 4 (59) 48 602

Cost of goods for resale and materials sold 2 259 31 668 (3 329) 30 598

Gross profit/(loss) on sales 154 241 12 350 (277) 166 314

Selling expenses 44 304 10 387 (312) 54 379

Administrative expenses 16 285 1 611 (29) 17 867

Other operating income 7 817 2 891 (889) 9 819

Other operating expenses 6 810 808 (835) 6 783

(Impairment)/reversal of impairment of financial instruments (9) - - (9)

Operating profit/(loss) 94 650 2 435 10 97 095

Finance income 33 984 3 563 (4 328) 33 219

Finance costs 18 245 4 374 (4 343) 18 276

Profit/(loss) before tax 110 389 1 624 25 112 038

Income tax expense 13 012 318 4 13 334

Net profit/(loss) 97 377 1 306 21 98 704

Net profit/(loss) attributable to owners of CD PROJEKT S.A. 97 377 1 306 21 98 704

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Consolidated income statement by segments for the period from 01.01.2022 to 30.09.2022

CD PROJEKT RED GOG.COM Consolidation eliminations Total

Sales revenue 500 722 132 773 (9 988) 623 507

Sales of products 485 216 - 3 841 489 057

Sales of services 2 582 204 (1 164) 1 622

Sales of goods for resale and materials 12 924 132 569 (12 665) 132 828

Cost of sales of products, services, goods for resale and materials 94 733 94 880 (9 052) 180 561

Costs of products and services sold 85 821 47 (228) 85 640

Cost of goods for resale and materials sold 8 912 94 833 (8 824) 94 921

Gross profit/(loss) on sales 405 989 37 893 (936) 442 946

Selling expenses 124 890 31 261 (431) 155 720

Administrative expenses 48 637 4 775 (256) 53 156

Other operating income 13 178 5 074 (3 048) 15 204

Other operating expenses 15 189 2 680 (3 177) 14 692

(Impairment)/reversal of impairment of financial instruments (17) - - (17)

Operating profit/(loss) 230 434 4 251 (120) 234 565

Finance income 70 316 8 007 (9 734) 68 589

Finance costs 37 244 10 068 (9 799) 37 513

Profit/(loss) before tax 263 506 2 190 (55) 265 641

Income tax expense 52 641 531 7 53 179

Net profit/(loss) 210 865 1 659 (62) 212 462

Net profit/(loss) attributable to owners of CD PROJEKT S.A. 210 865 1 659 (62) 212 462

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Consolidated income statement by segments for the period from 01.07.2021 to 30.09.2021

CD PROJEKT RED GOG.COM Consolidation eliminations Total

Sales revenue 104 770 41 784 (2 091) 144 463

Sales of products 101 642 1 984 636 104 262

Sales of services 964 73 (617) 420

Sales of goods for resale and materials 2 164 39 727 (2 110) 39 781

Cost of sales of products, services, goods for resale and materials 24 023 30 546 (1 642) 52 927

Costs of products and services sold 22 051 1 357 (191) 23 217

Cost of goods for resale and materials sold 1 972 29 189 (1 451) 29 710

Gross profit/(loss) on sales 80 747 11 238 (449) 91 536

Selling expenses 40 976 14 511 (165) 55 322

Administrative expenses 21 344 2 013 (126) 23 231

Other operating income 5 155 321 (561) 4 915

Other operating expenses 2 731 237 (707) 2 261

(Impairment)/reversal of impairment

of financial instruments

(5) - - (5)

Operating profit/(loss) 20 846 (5 202) (12) 15 632

Finance income 10 782 1 966 (2 764) 9 984

Finance costs 9 215 2 792 (2 791) 9 216

Profit/(loss) before tax 22 413 (6 028) 15 16 400

Income tax expense 1 332 (1 276) 2 58

Net profit/(loss) 21 081 (4 752) 13 16 342

Net profit/(loss) attributable to owners of CD PROJEKT S.A. 21 081 (4 752) 13 16 342

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Consolidated income statement by segments for the period from 01.01.2021 to 30.09.2021

CD PROJEKT RED GOG.COM Consolidation eliminations Total

Sales revenue 476 710 148 117 (9 718) 615 109

Sales of products 461 580 6 330 3 338 471 248

Sales of services 5 946 212 (2 026) 4 132

Sales of goods for resale and materials 9 184 141 575 (11 030) 139 729

Cost of sales of products, services, goods for resale and materials 116 098 107 406 (8 381) 215 123

Costs of products and services sold 107 655 4 184 (713) 111 126

Cost of goods for resale and materials sold 8 443 103 222 (7 668) 103 997

Gross profit/(loss) on sales 360 612 40 711 (1 337) 399 986

Selling expenses 142 624 44 841 (960) 186 505

Administrative expenses 71 546 6 098 (226) 77 418

Other operating income 10 214 1 193 (2 639) 8 768

Other operating expenses 8 359 852 (2 636) 6 575

(Impairment)/reversal of impairment

of financial instruments

(6) - - (6)

Operating profit/(loss) 148 291 (9 887) (154) 138 250

Finance income 7 685 4 702 - 12 387

Finance costs 12 444 5 998 (72) 18 370

Profit/(loss) before tax 143 532 (11 183) (82) 132 267

Income tax expense 12 856 (1 973) (6) 10 877

Net profit/(loss) 130 676 (9 210) (76) 121 390

Net profit/(loss) attributable to owners of CD PROJEKT S.A. 130 676 (9 210) (76) 121 390

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Consolidated statement of financial position by segments as at 30.09.2022

CD PROJEKT RED GOG.COM Consolidation eliminations Total

NON-CURRENT ASSETS 1 075 120 34 197 (17 080) 1 092 237

Property, plant and equipment 129 858 3 558 (1 985) 131 431

Intangible assets 69 942 10 - 69 952

Expenditure on development projects 447 993 1 487 (12) 449 468

Investment properties 42 961 - - 42 961

Goodwill 56 438 - - 56 438

Investments in subsidiaries 15 073 - (15 073) -

Shares in non-consolidated subsidiaries 72 195 - - 72 195

Prepayments and deferred costs 3 535 26 084 - 29 619

Other financial assets 197 509 - - 197 509

Deferred tax assets 38 829 3 058 (10) 41 877

Other receivables 787 - - 787

CURRENT ASSETS 1 080 000 62 252 (3 684) 1 138 568

Inventories 14 492 - - 14 492

Trade receivables 146 628 4 302 (3 684) 147 246

Current income tax receivable 122 1 210 - 1 332

Other receivables 46 908 1 628 - 48 536

Prepayments and deferred costs 8 211 19 856 - 28 067

Other financial assets 288 980 682 - 289 662

Bank deposits over 3 months 410 544 - - 410 544

Cash and cash equivalents 164 115 34 574 - 198 689

TOTAL ASSETS 2 155 120 96 449 (20 764) 2 230 805

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

CD PROJEKT RED GOG.COM Consolidation eliminations Total

EQUITY 1 978 506 35 106 (15 089) 1 998 523

Equity of the shareholders of CD PROJEKT S.A. 1 978 506 35 106 (15 089) 1 998 523

Share capital 100 739 136 (136) 100 739

Supplementary capital 1 502 549 33 001 (5 515) 1 530 035

Share premium 115 909 - - 115 909

Other reserves 38 003 371 (1 384) 36 990

Foreign exchange differences on translation 4 090 (65) 1 014 5 039

Retained earnings 6 351 4 (9 006) (2 651)

Net profit (loss) for the period 210 865 1 659 (62) 212 462

Non-controlling interests - - - -

NON-CURRENT LIABILITIES 35 565 1 362 (1 343) 35 584

Other financial liabilities 23 919 1 343 (1 343) 23 919

Other liabilities 2 680 - - 2 680

Deferred income 4 128 7 - 4 135

Provision for retirement and similar benefits 368 12 - 380

Other provisions 4 470 - - 4 470

CURRENT LIABILITIES 141 049 59 981 (4 332) 196 698

Other financial liabilities 38 591 648 (648) 38 591

Trade payables 26 499 44 119 (2 892) 67 726

Current income tax liabilities 6 468 - - 6 468

Other liabilities 4 406 4 473 - 8 879

Deferred income 14 774 5 858 - 20 632

Provision for retirement and similar benefits 6 1 - 7

Other provisions 50 305 4 882 (792) 54 395

TOTAL LIABILITIES AND EQUITY 2 155 120 96 449 (20 764) 2 230 805

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Consolidated statement of financial position by segments as at 30.06.2022

CD PROJEKT RED GOG.COM Consolidation eliminations Total

NON-CURRENT ASSETS 1 029 020 28 417 (18 310) 1 039 127

Property, plant and equipment 115 255 4 921 8 979 129 155

Intangible assets 69 754 10 - 69 764

Expenditure on development projects 432 371 1 697 (13) 434 055

Investment properties 55 830 - (12 175) 43 655

Goodwill 56 438 - - 56 438

Investments in subsidiaries 15 095 - (15 095) -

Shares in non-consolidated subsidiaries 67 055 - - 67 055

Prepayments and deferred costs 5 833 18 414 - 24 247

Other financial assets 173 589 - - 173 589

Deferred tax assets 37 066 3 375 (6) 40 435

Other receivables 734 - - 734

CURRENT ASSETS 1 084 507 75 735 (2 703) 1 157 539

Inventories 15 136 - - 15 136

Trade receivables 63 008 2 915 (2 703) 63 220

Current income tax receivable 1 698 756 - 2 454

Other receivables 49 779 1 632 - 51 411

Prepayments and deferred costs 5 630 15 087 - 20 717

Other financial assets 319 572 - - 319 572

Cash and cash equivalents 629 684 55 345 - 685 029

TOTAL ASSETS 2 113 527 104 152 (21 013) 2 196 666

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

CD PROJEKT RED GOG.COM Consolidation eliminations Total

EQUITY 1 884 553 33 823 (15 132) 1 903 244

Equity of the shareholders of CD PROJEKT S.A. 1 884 553 33 823 (15 132) 1 903 244

Share capital 100 739 136 (136) 100 739

Supplementary capital 1 503 561 62 796 (5 515) 1 560 842

Share premium 115 909 - - 115 909

Other reserves 43 336 394 (1 407) 42 323

Foreign exchange differences on translation 2 194 (65) 1 014 3 143

Retained earnings 5 339 (29 791) (9 006) (33 458)

Net profit (loss) for the period 113 475 353 (82) 113 746

Non-controlling interests - - - -

NON-CURRENT LIABILITIES 32 705 2 426 (2 402) 32 729

Other financial liabilities 23 614 2 402 (2 402) 23 614

Other liabilities 2 740 - - 2 740

Deferred income 5 492 12 - 5 504

Provision for retirement and similar benefits 368 12 - 380

Other provisions 491 - - 491

CURRENT LIABILITIES 196 269 67 903 (3 479) 260 693

Other financial liabilities 29 692 808 (776) 29 724

Trade payables 16 580 49 424 (1 962) 64 042

Other liabilities 105 477 4 845 - 110 322

Deferred income 12 037 5 645 - 17 682

Provision for retirement and similar benefits 5 2 - 7

Other provisions 32 478 7 179 (741) 38 916

TOTAL LIABILITIES AND EQUITY 2 113 527 104 152 (21 013) 2 196 666

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Consolidated statement of financial position by segments as at 31.12.2021*

CD PROJEKT RED GOG.COM Consolidation eliminations Total

NON-CURRENT ASSETS 906 304 17 860 (18 318) 905 846

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

Intangible assets 58 382 11 - 58 393

Expenditure 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 non-consolidated subsidiaries 38 520 - - 38 520

Prepayments and deferred costs 4 741 6 693 - 11 434

Other financial assets 178 540 - - 178 540

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

Other receivables 686 - - 686

CURRENT 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 receivable 98 - - 98

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

Prepayments and deferred costs 4 154 9 609 - 13 763

Other financial assets 307 765 - - 307 765

Bank deposits over 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

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

CD PROJEKT RED GOG.COM Consolidation eliminations Total

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

Equity of the shareholders of CD PROJEKT S.A. 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

Share premium 115 909 - - 115 909

Other reserves 49 007 276 (1 289) 47 994

Foreign exchange differences on translation 642 (65) 1 014 1 591

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

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

Non-controlling interests - - - -

NON-CURRENT 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 income 6 403 21 - 6 424

Provision for retirement and similar benefits 368 12 - 380

Other provisions 5 368 - - 5 368

CURRENT LIABILITIES 172 230 60 611 (4 574) 228 267

Other financial liabilities 25 661 869 (728) 25 802

Trade payables 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 income 26 072 5 476 - 31 548

Provision for retirement and similar benefits 6 1 - 7

Other provisions 76 209 6 910 (77) 83 042

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

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Operating segments

In the third quarter of 2022, the Group’s operations were carried out in two business segments:

 CD PROJEKT RED;

 GOG.COM.

CD PROJEKT RED

The scope and model of operations

The operations of the CD PROJEKT RED segment are executed within the structures of CD PROJEKT S.A. (the domestic holding

company of the CD PROJEKT Group), CD PROJEKT Inc. (USA) and CD PROJEKT RED STORE sp. z o.o. (an online shop).

These operations consist in creating and publishing video games, selling licences for their distribution, coordinating sales

promotions, and the production, sales or licensing of the accompanying products which support and enhance the brands owned.

The production and publishing of the computer games is executed by the CD PROJEKT RED studio and is based on the brands

owned by the Parent Company – the Witcher and Cyberpunk. The studio is globally known for its Cyberpunk 2077 game and the

Witcher game series, the flagship brands of CD PROJEKT RED. In addition to the said franchises, the studio started internal concept

work on the third franchise under which the creation of a video game with the code name Hadar is planned.

As part of the publishing operations, the Parent Company is responsible for the design of the campaigns which promote its own

products and independently maintains direct communication with players via electronic media channels and social media and by

participating in industry events.

The segment also comprised the operations of the gear.cdprojektred.com

mail order shop which offered products for fans of

CD PROJEKT RED’s games.

Key products

Currently, the portfolio of the studio’s main products includes video games which comprise the Witcher trilogy: The Witcher, The

Witcher 2: Assassins of Kings, The Witcher 3: Wild Hunt with two expansions: Hearts of Stone and Blood and Wine, and Cyberpunk

2077 - the studio’s first game in the Cyberpunk universe launched on 10 December 2020. On 15 February 2022, the

CD PROJEKT RED studio released the Cyberpunk 2077 version dedicated for new generation consoles.

Since 2018, a network game Gwent: The Witcher Card Game is available (PC, macOS, iOS, Android). Moreover, the Parent

Company’s offer includes a game based on its mechanics, Thronebreaker: The Witcher Tales ((PC, iOS, Nintendo Switch, Xbox One,

PlayStation 4, Android). A single-player expansion titled Gwent: Rogue Mage was released on 7 July 2022 (for Microsoft Windows,

iOS, Android).

GOG.COM

The scope and model of operations

GOG.COM is currently one of the world’s most popular independent digital distribution platforms for computer games, which is

distinguished by offering digital products without security features that make it difficult for users to use the games they have

purchased (DRM).

The platform is available in English, French, German, Chinese and Polish, offering customers not only a fully localized website or

games, but also dedicated customer service, technical support, direct marketing activity in the language and popular local payment

methods. On GOG.COM, games are available for Windows PCs, as well as for macOS and Linux operating systems.

The operations of the GOG.COM segment consists in digital distribution of the games via own GOG.COM shop and GOG GALAXY

application. The platform makes it possible to purchase the game, pay for the game and download it to one’s own computer; in

addition, the GOG GALAXY application enables, among other things, automatic updates, saving the game in the cloud, network

play, including between platforms, and is also responsible for GWENT’s network functionalities, sales support and handling of

payments made in the PC version of the game.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Description of the Issuer’s major achievements or failures in the third quarter

of 2022 by operating segments

CD PROJEKT RED

Events relating to Cyberpunk 2077

On 4 September 2022, at the PAX West event in Seattle (USA), CD PROJEKT RED organized preview shows of the anime

CYBERPUNK: EDGERUNNERS. More than 500 visitors had the opportunity to view the first two episodes of the series.

On 6 September, a special episode of Night City Wire premiered. After a segment on CYBERPUNK: EDGERUNNERS,

a representative of CD PROJEKT RED discussed the studio’s plans for the development of the game and the brand. A gameplay

trailer of the upcoming expansion for Cyberpunk 2077 entitled “Phantom Liberty” was presented and finally a special announcement

was aired from Keanu Reeves himself, who confirmed his return to the Cyberpunk 2077 universe. This was followed by a live stream,

during which studio representatives presented the most important new features awaiting Cyberpunk 2077 players in update 1.6

(EDGERUNNERS UPDATE) released on the same day. The update released included additional content for the game related to the

series (side quests, locations, items, an arcade game) and a number of updates and technical improvements to the game. Alongside

the update, a free mobile game Roach Race, brought straight from Cyberpunk 2077 to mobile screens, has appeared in the Google

Play and Apple Store mobile app shops.

On 13 September, the anime CYBERPUNK: EDGERUNNERS - a 10-episode story created by CD PROJEKT RED in collaboration with

the Japanese Studio Trigger – made its debut on the Netflix platform. The series has received positive reviews from both critics

and viewers. It received a rating of 8.9 among users on Metacritic and a 100% recommendation among reviewers on Rotten

Tomatoes. In its premiere week, the anime debuted at number 8 on the ‘Netflix Top 10’ chart (in the non-English category) – a global

ranking of the most popular productions on the platform – where it remained for the next four weeks.

On 4 October, in the CD PROJEKT Group Strategy Update

, the studio confirmed the further development of the Cyberpunk franchise

by announcing, among other things, a project codenamed Orion, a sequel to Cyberpunk 2077.

Events relating to the Witcher series games

On 7 July 2022, a single-player expansion titled Gwent: Rogue Mage was released. The game combines roguelike, deckbuilding,

and strategy elements with the mechanics of Gwent card battles. The game is available to buy as a standalone title for PC

(GOG.COM and Steam), as well as on iOS and Android.

On 4 October, during the conference on the CD PROJEKT Group Strategy Update

, the studio announced that it was working on

developing the Witcher franchise by announcing, among other things, a new Witcher trilogy (which will be launched with a game

codenamed Polaris) and two other projects in the Witcher world (Sirius and Canis Majoris).

On 6–8 October, the Game Industry Conference took place, the most important event for video game developers in Poland.

CD PROJEKT RED is the gold sponsor of the event. During the ongoing conference and accompanying trade fair Poznań Games

Arena 2022, Gwent: Rogue Mage was awarded the statuette for best mobile game of the year by the CEEGA (Central & Eastern

European Game Awards).

On 26 October, on the occasion of the 15th anniversary of the release of The Witcher, CD PROJEKT RED announced that work was

in progress on a new version (remake) of the first part of Geralt of Rivia’s adventures (Canis Majoris project). The game will be

developed on Unreal Engine 5 and the execution of the project will be the responsibility of Fool’s Theory, a studio specializing in

role-playing games. CD PROJEKT RED has full creative oversight of the game’s development.

On 14 November, CD PROJEKT RED announced a release date of 14 December 2022 for the Witcher 3: Wild Hunt update, which

takes advantage of the possibilities offered by the newest generation of consoles and PC. The update will include a range of

graphical and technical improvements, a wide selection of community-created mods and additional content inspired by the Witcher

series from Netflix.

GOG.COM

Digital distribution of games

As at the date of publication of this report, the product range on GOG.COM comprises more than 7,000 items.

In the third quarter of 2022, the GOG.COM catalogue expanded to include, among other things, The Elder Scrolls V: Skyrim, Middle-

Earth: Shadow of Mordor, Warhammer 40,000: Space Marine, The Cult of the Lamb, Mortal Kombat Trilogy, Baldur’s Gate: Dark

Alliance II, Mafia Trilogy, LEGO DC Super-Villains, Hard West 2, South of the Circle, Destroy All Humans! 2.

Sales promotion

Sales promotion in the digital distribution of games mainly consists of adding new items of interest to users to the catalogue and

running seasonal promotional campaigns.

In the period discussed, in addition to the weekly promotions, special promotion campaigns took place on GOG.COM, including the

GOG Sale, the Find Your Indie Sale, the Moon Festival Sale and the GOG Birthday Sale.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

In July, August and September, GOG organized a series of promotional campaign with a national theme. These were the French

Week, the Ukrainian Games Sale and the Made in DACH Sale, respectively, which celebrated and recognized the great games

created and released in these specific markets. Each of these events featured special offers and releases from French, Ukrainian

and German, Austrian and Swiss game developers, as well as dedicated editorials by the GOG.COM team.

On the occasion of the 20th anniversary of CD PROJEKT RED, GOG.COM organized a special sale campaign of all games from the

Witcher and Cyberpunk 2077 series and held a giveaway of digital bonus materials from the studio’s games.

Other events

1 July 2022 saw the launch of the first ever coordinated Summer Internship Programme at CD PROJEKT RED. Out of the 3,571

applications received from those wishing to take up an internship (plus more than 1,200 applications in the Ukrainian programme),

31 interns were finally selected to begin their adventure with the gaming industry in various departments of the studio, in Warsaw,

Kraków and Wrocław. After three months of internship, 25 people remained in the studio to develop their skills and work on

developing new games.

In September 2022, after a four-year break, the Parent Company organized the Promised Land festival in Łódź. It is addressed to

professional artists who want to develop their skills and exchange experiences with leading ﬁlm and gaming professionals from

around the world. The festival, organized in partnership with EC1 Łódź – City of Culture, attracted nearly 900 participants who

attended more than 30 hours of workshops and were able to hear lectures by nearly 60 speakers.

5 September saw the launch of the second edition of the “Girls in the Game!” programme, organized by CD PROJEKT RED together

with the Perspektywy Foundation, a scholarship and mentoring project in homage to Karolina Grochowska addressed t young girls

from the final grades of secondary schools who would like to associate their career with the video games industry. The application

period ended on 30 October. From among approximately 1,000 applications, 20 participants were selected and will have the

opportunity to develop their skills under the guidance of CD PROJEKT RED experts, as well as receive a one-year study scholarship.

Factors affecting the Group’s future performance

For the future growth of the Company and the group, the ability to retain and offer growth opportunities to a team of 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 is of critical importance.

Strategic directions related to talent acquisition, team development and support and transformation of the game creation process

are presented in the CD PROJEKT Group Strategy Update of 2021 (including its discussion in the form of a video commentary

) and

in CD PROJEKT Group Sustainable Development Report for 2021.

Material Group-specific external and internal factors which may negatively affect the Group’s operations and development identified

by the Management Board and the risk management system functioning within the Company are described in the risks section of

the Management Report on the operations of CD PROJEKT Group for 2021

Strategy update – Long-term product outlook

On 4 October 2022, the CD PROJEKT Group published the Strategy Update which expanded the last year’s update, focusing on

the long-term development of key projects. In the coming years, the studio plans to publish a number of productions in the Witcher

and Cyberpunk franchises and to conduct internal development work on the third proprietary IP as part of which a game under the

code name Hadar is planned to be created in future.

The CD PROJEKT Group announced opening a new hub in Boston (separate from The Molasses Flood studio) which, together with

the growing Vancouver team, will become the CD PROJEKT RED North America studio. It will enable the group to access the North

American talent pool.

Moreover, CD PROJEKT announced adding a multiplayer to the majority of the future project and continuing the idea of a franchise

flywheel consisting of expanding an ecosystem of mutually growth-promoting products based on the potential of the franchises

held. Consequently, the Group opened up to cooperation with external teams to ensure new, exciting ways of being in touch with

the Group’s brands and, at the same time, to facilitate focusing on creating revolutionary role-playing games for the internal team.

In the coming years, the perceived directions of the Groups strategic development are as follows:

 continuing to increase production capacity to provide more content to players while maintaining top quality;

 enhancing CD PROJEKT RED’s game experiences with multiplayer features;

 continuing to expand franchises.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

CD PROJEKT RED

In the CD PROJEKT RED segment, expansion of the operations is directly linked to new projects implemented, the scale of their

production and popularity among players. In this context, the current results of the CD PROJEKT Group are driven by the popularity

of the games in the Cyberpunk and Witcher universe already issued by the Company, and in the coming periods they will be driven

by the progress of the production work and the market reception of the successive productions realized by the Company.

In the perspective of the coming quarters, the activities of particular importance for the CD PROJEKT RED studio will include

releasing the Witcher 3: Wild Hunt game, including expansions, in the version for new generation consoles and a premiere of a large

expansion of Cyberpunk 2077 titled “Phantom Liberty” planned for 2023. These events should positively contribute to the level of

sales revenue and the Group’s net profit or loss in the periods discussed.

Another important process in the context of the development of the CD PROJEKT RED will be the continued integration of the

developer work with the new engine, Unreal Engine 5, following the start of strategic cooperation with Epic Games in March 2022.

The new engine used should contribute to making the process of games creation more efficient and enable the studio creators to

focus on creative aspects of the video game productions. The strategic partnership assumes improving the UE5 engine in terms of

handling “open world” games and adaptation and optimization of its elements to creative concepts of the next projects. It also

involves dedicated technical support on the part of Epic Games for titles released by CD PROJEKT RED. Moreover, starting work

on the EU5 engine broadens the perspectives for recruitment to the studio’s development teams due to the good knowledge of

the Unreal Engine technology among game creators.

GOG.COM

In the GOG.COM segment, the growing consumer propensity to buy games in the so-called digital distribution model in recent years

was a factor supporting sales, as well as, in 2020-2021, increased popularity of computer games in the period of restrictions relating

to the COVID-10 pandemic.

For the further development of the GOG.COM platform, it is important to acquire further premiere products. GOG sp. z o.o. is

proactively talking with leading international game developers and publishers, constantly expanding the range of suppliers and

products on offer. Successive first releases of new games on GOG-COM each time contribute to increasing user activity and

translate to sales growth. In addition to continuously expanding the list of products offered, expansion of GOG sp. z o.o.’s operations

also requires growing the user base by reaching new players around the world who have not yet had an account on the GOG.COM

platform. In this respect, in recent years, a constant growth of the number of users has been achieved, due to both own PR activities

and synergies resulting from cooperation with CD PROJEKT S.A.

The results and development of the activities carried out as part of the GOG.COM segment, including acquisition of unique

knowledge and experience and the full use of technological solutions possessed will be affected by the development of

functionalities which support the sale of games on the platform, including better integration of monetization mechanisms of the

GOG GALAXY application with the GOG.COM shop, as well as increased activity to expand the offer of classic games on the

platform.

Other

The growth of the CD PROJEKT Group will also be affected by development work and other activities undertaken by its subsidiary

The Molasses Flood, which is working on a new game set up in the Witcher universe (code name Sirius) designed having in mind

both the existing and new fans of the Witcher .

Impact of the political and economic situation in Ukraine on sales during the

reporting period

Impact 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 in the territory of Russia

and Belarus. The Parent Company estimates that in the 12 months since March 2021 to February 2022, the total share of Russia

and Belarus in sales of products in the CD PROJEKT RED segment and in the sales of the GOG.COM segment amounted to,

respectively, approximately 5.4% and approximately 3.7%.

Risks associated with the current political and economic situation in Ukraine

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

on the activities of the CD PROJEKT Group. The Parent Company terminated cooperation with the Russian and Belarussian suppliers

and is currently not considering engaging in new collaboration.

As of the publication date of these financial statements, the Group’s operating activities are undisturbed and the effect of the

Russian armed invasion of Ukraine does not have a significant negative impact on the Group’s operations. In the opinion of the

Management Board, the current political and economic situation in Ukraine does not affect the quantitative data presented in the

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

financial statements, has not resulted in any indications of impairment of assets, should not have a significant negative effect on

the Group’s results in the next quarter of 2022, and does not pose any risks to the Company’s continuing as a going concern within

12 months of the end of the reporting period.

Given the unprecedented nature of the current situation and the related significant uncertainty, particularly the inability to predict

the duration of the Russian invasion, as at the date of publication of these financial statements, it is impossible to reliably estimate

the long-term impact of the invasion of the Russian armed forces on Ukraine on the long-term performance and condition of the

Company and its Group. Any assessments and forecasts in this regard are uncertain and will be subject to further monitoring and

analysis by the Group. The above assessment has been prepared to the best of the Company’s knowledge at the date of preparing

these financial statements.

Seasonality or cyclicality of the Group’s operations

CD PROJEKT RED

Segment revenues and results are strongly affected by the videogame release schedule. CD PROJEKT RED usually takes between

2 and 5 years to produce a game. Typically, initial development work on a new game starts before the production of the previous

game has been completed and the game release to the market.

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

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

implementation usually takes from less than ten to below twenty months.

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.

In addition to pure development activities, the Company also actively develops its franchises in other fields, with a view to continually

expanding its audience and exploring other types of media and platforms – with the anime series CYBERPUNK: EDGERUNNERS

released on 13 September being a successful example.

Chart1 Effect of new releases on the quarterly sales of products, goods for resale and materials of the CD PROJEKT RED segment

in 2011-2022 (in PLN thousands)

200000

400000

600000

800000

1000000

1200000

1400000

1600000

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

GOG.COM

The digital videogame distribution market on which GOG.COM operates is characterized by seasonal fluctuations in revenues. On

an annual basis, the highest revenues are typically obtained in the second and fourth quarter while the lowest revenues in the first

and third quarter. Sales in the second and fourth quarters are temporarily boosted by promotional campaigns typically organized

in these quarters.

The sales volume may also be strongly affected by the list of new products introduced in a given reporting period – a unique

example of which is the revenue level in the fourth quarter of 2020 presented in the chart below related to the launch of the

Cyberpunky 2077 game.

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

Key customers

The CD PROJEKT Group cooperates with external customers whose share in the consolidated revenues of the Group exceeds 10%.

In the CD PROJEKT RED segment, the sales operations conducted by CD PROJEKT S.A. in cooperation with three customers

generated sales in excess of 10% of the total consolidated sales of the Group (cumulatively up to the end of the third quarter of

2022), in the amount of PLN 185 087 thousand, 102 394 thousand and 70 401 thousand, i.e. 29.7%, 16.4% and 11.3% of the Group’s

total sales, respectively. The customers referred to above are not related to CD PROJEKT S.A. or its subsidiaries.

None of the other external customers of the Group exceeded the 10% threshold.

40000

80000

120000

160000

200000

Q1 Q2 Q3 Q4

2018 2019 2020 2021 2022

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Notes – other explanatory notes to the

interim condensed consolidated

financial statements

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 1. Description of those items affecting assets, liabilities, equity, net profit

or loss and cash flows which are not typical in terms of their type, size and

impact

The following unusual events relating the CD PROJEKT RED segment had a material impact on the results, assets, liabilities & equity

and cash flows of the CD PROJEKT Group in the third quarter of 2022 (which was not observed in the reference period):

 recognition of the income and costs relating to completing the production of CYBERPUNK: EDGERUNNERS anime series

on a one-off basis in connection with its release on Netflix;

 recognition in the income statement (under corporate income tax) of a part of withholding tax collected in other

jurisdictions on licence fees paid to the Parent Company, which is not deductible due to the application of a preferential

IP Box tax rate.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 2. Property, plant and equipment

Changes in property, plant and equipment (by category) for the period 01.01.2022 – 30.09.2022 *

Land

Buildings and

structures

Civil and marine

engineering

facilities

Plant and

machinery

Vehicles

Other fixed assets

Fixed assets under

construction

Total

Gross carrying amount

as at 01.01.2022

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

Increase due to: - 4 659 277 7 341 609 687 13 221 26 794

purchase - 154 - 6 920 609 648 13 101 21 432

lease contracts

concluded

- 4 154 4 - - - - 4 158

transfer from

investment

properties

- 112 273 - - - 120 505

transfer from fixed

assets under

construction

- 239 - 34 - 39 - 312

reclassification - - - 81 - - - 81

free of charge receipt - - - 306 - - - 306

Decrease due to: - 816 212 2 625 739 173 424 4 989

sale - - - 288 739 - - 1 027

disposal - 816 212 2 104 - 92 24 3 248

transfer from fixed

assets under

construction

- - - - - - 312 312

reclassification - - - - - 81 88 169

other - - - 233 - - - 233

Gross carrying amount

as at 30.09.2022

40 435 79 704 1 941 56 843 3 113 5 444 15 124 202 604

Accumulated

depreciation at

01.01.2022

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

Increase due to: 425 5 079 187 7 696 400 711 - 14 498

depreciation charge 425 5 072 158 7 645 400 711 - 14 411

transfer from

investment

properties

- 7 29 - - - - 36

reclassification - - - 51 - - - 51

Decrease due to: - 964 76 2 621 753 122 - 4 536

sale - - - 279 739 - - 1 018

disposal - 816 76 2 085 - 71 - 3 048

reclassification - - - - - 51 - 51

other - 148 - 257 14 - - 419

Accumulated

depreciation at

30.09.2022

1 675 23 912 669 40 220 1 439 3 258 - 71 173

Impairment write-downs

as at 01.01.2022

- - - - - - - -

Impairment write-downs

as at 30.09.2022

- - - - - - - -

Net carrying amount as

at 01.01.2022

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

Net carrying amount as

at 30.09.2022

38 760 55 792 1 272 16 623 1 674 2 186 15 124 131 431

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Amounts of contractual commitments to purchase property, plant and equipment in the future

30.09.2022 30.06.2022 31.12.2021

Leasing of passenger cars 600 600 429

Total 600 600 429

Right-of-use assets relating to property, plant and equipment

30.09.2022

Gross amount

Accumulated

depreciation

Net amount

Land 14 540 617 13 923

Real properties 12 106 7 932 4 174

Civil and marine engineering facilities 99 87 12

Vehicles 2 173 602 1 571

Total 28 918 9 238 19 680

30.06.2022

Gross amount

Accumulated

depreciation

Net amount

Land 14 540 566 13 974

Real properties 10 988 6 978 4 010

Civil and marine engineering facilities 103 73 30

Vehicles 2 142 458 1 684

Total 27 773 8 075 19 698

31.12.2021

Gross amount

Accumulated

depreciation

Net amount

Land 14 540 464 14 076

Real properties 8 037 6 698 1 339

Civil and marine engineering facilities 94 47 47

Vehicles 1 504 257 1 247

Total 24 175 7 466 16 709

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 3. Intangible assets and expenditure on development projects

Changes in intangible assets and expenditure on development projects for the period 01.01.2022 –

30.06.2022

Expenditure on

development

projects in

progress

Expenditure on

completed

develop

ment

projects

Trademarks

Patents and

licences

Computer

software

Goodwill

Intangible assets

under

construction

Total

Gross carrying amount

as at 01.01.2022

95 169 841 986

33 199 2 154

18 331 36 018 56 438 19

1 083 314

Increase due to: 185 866 42 323

- 2 405

138 12 827 - 422

243 981

purchase - -

- 2 405

30 12 724 - 422

15 581

assets internally

generated

185 866 -

- -

- - - -

185 866

transfer from

expenditure on

development

projects

in progress

- 42 323

- -

- - - -

42 323

transfer from

intangible assets

under construction

- -

108 - - -

108

reclassification - -

- -

- 103 - -

103

Decrease due to: 63 438 -

- 103

- - - 122

63 663

disposal 283 -

- -

- - - -

283

utilization of

impairment write-

downs

20 806 -

- -

- - - -

20 806

transfer from

expenditure on

development projects

in progress

42 323 -

- -

- - - -

42 323

transfer from

intangible assets

under construction

- -

- - - 108

108

reclassification 26 -

- 103

- - - 14

143

Gross carrying amount

as at 30.09.2022

217 597 884 309

33 199 4 456

18 469 48 845 56 438 319

1 263 632

Accumulated

depreciation at

01.01.2022

- 552 378

- 1 928

173 29 227 - -

583 706

Increase due to: - 85 373

- 716

93 3 199 - -

89 381

amortization charge - 85 373

- 716

93 3 199 - -

89 381

Decreases - -

- -

- - - -

Accumulated

depreciation at

30.09.2022

- 637 751

- 2 644

266 32 426 - -

673 087

Impairment write-

downs as at 01.01.2022

20 806 13 776

- -

- - - -

34 582

Increase due to: 911 -

- -

- - - -

911

impairment 911 -

- -

- - - -

911

Decrease due to: 20 806 -

- -

- - - -

20 806

reversal of write-

downs (write-off)

20 806 -

- -

- - - -

20 806

Impairment write-downs

as at 30.09.2022

911 13 776

- -

- - - -

14 687

Net carrying amount as

at 01.01.2022

74 363 275 832

33 199 226

18 158 6 791 56 438 19

465 026

Net carrying amount as

at 30.09.2022

216 686 232 782

33 199 1 812

18 203 16 419 56 438 319

575 858

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Amounts of contractual commitments to purchase intangible assets in future

Not applicable.

Note 4. Goodwill

There were no changes in goodwill in the period from 1 July to 30 September 2022.

Note 5. Investment properties

The Parent Company owns a real estate complex located at ul. Jagiellońska 76 in Warsaw. Given that part of the properties

purchased is leased out to third parties, including CD PROJEKT Group companies, the Group decided to partly classify these

properties as investment properties. The remaining part of the property is used for own needs of the activities conducted.

The Group measures the properties purchased at cost less accumulated depreciation.

Change in investment properties for the period 01.01.2022 – 30.09.2022*

Gross carrying amount as at 01.01.2022 48 170

Increase due to: 214

capitalized expenditure 214

Decrease due to: 505

reclassification to other asset categories 505

Gross carrying amount as at 30.09.2022 47 879

Accumulated depreciation at 01.01.2022 3 536

Increase due to: 1 418

depreciation charge 1 418

Decrease due to: 36

reclassification to other asset categories 36

Accumulated depreciation at 30.09.2022 4 918

Impairment write-downs as at 01.01.2022 -

Increase -

Decreases -

Impairment write-downs as at 30.09.2022 -

Net carrying amount as at 30.09.2022 42 961

* restated data

Contractual liabilities on purchase of investment properties

Not applicable.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 6. Inventories

30.09.2022 30.06.2022 31.12.2021

Goods for resale 14 488 15 121 15 843

Other materials 4 15 43

Gross inventories 14 492 15 136 15 886

Inventory write-downs - - -

Net inventories 14 492 15 136 15 886

Change in inventory write-downs

Not applicable.

Note 7. Trade and other receivables

30.09.2022 30.06.2022 31.12.2021

Trade and other receivables, gross 197 397 116 184 240 288

Write-downs 828 819 811

Trade and other receivables 196 569 115 365 239 477

from related entities 1 383 1 556 1 238

from other entities 195 186 113 809 238 239

Change in write-downs of receivables

Trade

receivables

Other

receivables

Total

OTHER ENTITIES

Write-downs as at 01.01.2022 79 732 811

Increases, including: 17 - 17

write-downs recognized for past-due and disputed receivables 17 - 17

Decreases - - -

Write-downs as at 30.09.2022 96 732 828

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Current and overdue trade receivables as at 30.09.2022

Total Not overdue

Overdue, in days

1 – 60 61 – 90 91 – 180 181 – 360 >360

RELATED ENTITIES

gross receivables 1 382 238 - - - 1 144 -

default ratio - 0% 0% 0% 0% 0% 0%

write-down resulting

from the ratio

- - - - - - -

write-down

determined

individually

- - - - - - -

total expected credit

losses

- - - - - - -

Net receivables 1 382 238 - - - 1 144 -

Total Not overdue

Overdue, in days

1 – 60 61 – 90 91 – 180 181 – 360 >360

OTHER ENTITIES

gross receivables 145 960 145 397 413 - 11 43 96

default ratio - 0% 0% 0% 0% 0% 0%

write-down resulting

from the ratio

- - - - - - -

write-down

determined

individually

96 - - - - - 96

total expected credit

losses

96 - - - - - 96

Net receivables 145 864 145 397 413 - 11 43 -

Total

gross receivables 147 342 145 635 413 - 11 1 187 96

impairment write-

downs

96 - - - - - 96

Net receivables 147 246 145 635 413 - 11 1 187 -

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Other receivables

30.09.2022 30.06.2022 31.12.2021*

Other gross receivables, including: 50 055 52 877 114 916

tax receivables, other than corporate income tax 36 816 40 163 77 067

prepayments for inventories 7 095 6 892 5 391

prepayments for development projects 3 860 3 649 30 435

security deposits 1 108 1 050 998

prepayments for property, plant and equipment and intangible

assets

141 75 34

provisions for sales revenue – prepayments 41 121 67

settlements with employees 13 7 5

settlements with members of the Management Boards of the

Group companies

1 7 7

prepayments on investment properties - - 79

other 980 913 833

Write-downs 732 732 732

Other receivables, including: 49 323 52 145 114 184

current 48 536 51 411 113 498

non-current 787 734 686

* restated data

Note 8. Other financial assets

30.09.2022 30.06.2022 31.12.2021

Loans granted - - 8 890

Bonds 486 489 493 161 477 415

Derivative financial instruments 682 - -

Other financial assets, including: 487 171 493 161 486 305

current 289 662 319 572 307 765

non-current 197 509 173 589 178 540

Note 9. Prepayments and deferred costs

30.09.2022 30.06.2022 31.12.2021

Minimum guarantees, advance payments and prepayments

GOG.COM

45 218 32 604 15 230

Software, licences 6 381 6 323 3 905

Costs of future marketing services 1 642 1 686 1 734

Fees for pre-emptive rights 1 298 1 324 1 378

Costs of repairs and maintenance 1 222 1 304 1 470

Property and personal insurance 769 146 525

Costs of IT security resources 409 543 421

Business travel (tickets, hotels, insurance) 278 360 64

Fees for perpetual usufruct of land 71 142 -

Participation in fairs 13 124 7

Marketing campaigns - - 19

Other prepayments and deferred costs 385 408 444

Prepayments and deferred costs, including: 57 686 44 964 25 197

current 28 067 20 717 13 763

non-current 29 619 24 247 11 434

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 10. Deferred income tax

Deductible temporary differences underlying the deferred tax asset

31.12.2021*

Differences affecting

the deferred tax

recognized in the

profit or loss

30.09.2022

Provision for other employee benefits 387 - 387

Provision for costs of performance-related and

other remuneration

39 543 (9 873) 29 670

Tax loss 15 133 (7 877) 7 256

Foreign exchange losses 3 275 3 273 6 548

Difference between the carrying and tax

amount of expenditure on development

projects

24 780 (22 640) 2 140

Salaries and wages and social security payable

in future periods

61 (15) 46

Deferred income in respect of virtual wallet top-

ups and fringe benefit scheme

3 401 488 3 889

Other provisions 48 839 (24 017) 24 822

Research and development relief 303 891 - 303 891

Prepayments recognized as revenue for tax

purposes

1 469 4 284 5 753

Difference between the net carrying amount

and tax amount of property, plant and

equipment and intangible assets

12 - 12

Measurement of forward contracts 142 (142) -

Other 83 289 372

Total deductible differences, including: 441 016 (56 230) 384 786

taxed at 5% 60 423 (22 929) 37 494

taxed at 19% 379 384 (33 601) 345 783

deferred tax charged abroad 1 209 300 1 509

Deferred income tax asset 75 350 (7 477) 67 873

* restated data

Taxable temporary differences underlying the deferred tax provision

31.12.2021*

Differences affecting

the deferred tax

recognized in the

profit or loss

30.09.2022

Difference between the net carrying amount

and tax amount of property, plant and

equipment and intangible assets

14 431 876 15 307

Current period revenue invoiced in the

subsequent period/accrued income

129 257 8 171 137 428

Foreign exchange gains 14 963 (13 111) 1 852

Difference between the carrying and tax

amount of expenditure on development

projects

272 934 (45 005) 227 929

Measurement of forward contracts - 682 682

Other 86 182 268

Total taxable differences, including: 431 671 (48 205) 383 466

taxed at 5% 386 324 (51 593) 334 731

taxed at 19% 45 347 3 388 48 735

Deferred tax provision 27 932 (1 936) 25 996

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

The deferred part of the income tax was determined either at the corporate income tax rate of 19% for the tax base corresponding

to income from other sources, or at the rate of 5% for the tax base corresponding to income from qualifying intellectual property

(the so-called IP BOX). When determining the appropriate tax rate for temporary differences, the Group relied on forecasts of which

tax base will give rise to the realization of the temporary differences recognized.

Net deferred tax asset/provision

30.09.2022 30.06.2022 31.12.2021

Deferred income tax assets 67 873 69 929 75 350

Deferred tax provision 25 996 29 494 27 932

Net deferred tax - assets/(provisions) 41 877 40 435 47 418

Income tax expense recognized in the income statement

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Current income tax, including: 14 776 47 638 6 634 60 566

withholding tax paid abroad 6 722 31 356 (317) (314)

Change in deferred tax (1 442) 5 541 (6 576) (49 689)

Income tax expense recognized in the income statement 13 334 53 179 58 10 877

Note 11. Provision for retirement and similar benefits

30.09.2022 30.06.2022 31.12.2021

Provision for retirement and disability bonuses 387 387 387

Total, including: 387 387 387

current 7 7 7

non-current 380 380 380

During the period from 1 July to 30 September 2022 there were no changes in provisions for retirement and similar benefits.

Note 12. Other provisions

30.09.2022 30.06.2022 31.12.2021

Provision for liabilities, including: 58 865 39 407 88 410

provision for costs of the audit and review of the financial

statements

68 69 160

provision for costs of external services 1 232 1 360 1 042

provision for costs of performance-related and other remuneration 41 402 22 128 44 856

provision for other costs 16 163 15 850 42 352

Total, including: 58 865 39 407 88 410

current 54 395 38 916 83 042

non-current 4 470 491 5 368

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Change in other provisions

Provision for costs of

performance-related

and other

remuneration

Other provisions Total

As at 01.01.2022 44 856 43 554 88 410

Provisions recorded during the year 41 407 29 825 71 232

Provisions utilized 44 561 55 759 100 320

Provision released 300 157 457

As at 30.09.2022, including: 41 402 17 463 58 865

current 41 402 12 993 54 395

non-current - 4 470 4 470

Note 13. Other liabilities

30.09.2022 30.06.2022 31.12.2021

Taxes (other than corporate income tax), customs duty, social

security and other payables

8 451 9 131 9 536

VAT 3 909 4 324 5 515

Withholding tax 767 785 905

Personal income tax 1 488 1 442 1 835

Social security contributions 2 143 2 463 1 164

State Disabled Persons Fund (PFRON) 66 68 56

PIT-8AR (personal income tax) settlements 78 49 61

Other liabilities 3 108 103 931 3 366

Liabilities in respect of pre-emptive rights and costs of future

marketing services

2 680 2 740 2 860

Other settlements with employees 102 136 125

Other settlements with members of the Management Boards 6 - 36

Dividends payable - 100 739 -

Prepayments received from foreign customers - - 13

Other liabilities 320 316 332

Total other liabilities 11 559 113 062 12 902

current 8 879 110 322 10 042

non-current 2 680 2 740 2 860

Note 14. Deferred income

30.09.2022 30.06.2022 31.12.2021

Subsidies 5 976 7 347 8 277

Sales relating to future periods 14 483 11 628 25 715

GOG wallet 4 268 4 166 3 947

Rental of company phones 40 45 33

Deferred income, including: 24 767 23 186 37 972

current 20 632 17 682 31 548

non-current 4 135 5 504 6 424

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 15. Information on financial instruments

Fair values and hierarchy of specific classes of financial instruments

The Management Boards of the Group analysed specific classes of financial instruments. Based on the analysis, it was concluded

that the carrying amounts of the instruments do not materially differ from their fair values, as at both 30 September 2022, 30 June

2022 and 31 December 2021.

30.09.2022 30.06.2022 31.12.2021*

LEVEL 1

Assets measured at fair value

Assets measured at fair value through

other comprehensive income

269 169 249 800 228 661

bonds issued by foreign governments – EUR 26 164 25 318 24 517

bonds issued by foreign governments – USD 243 005 224 482 204 144

LEVEL 2

Assets measured at fair value through profit or loss

Derivatives 682 - -

currency forwards – EUR 46 - -

currency forwards – USD 636 - -

Liabilities measured at fair value through profit or loss

Derivatives 28 701 20 528 18 047

currency forwards – EUR 471 147 486

currency forwards – USD 28 230 20 381 17 561

* restated data

Financial Instruments measured at fair value are classified to 3-stage fair value hierarchy:

Level 1 – quoted prices on active markets for identical assets or liabilities.

Level 2 – fair value based on observable market data.

Level 3 – fair value based on market data that is not observable in the market.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Financial assets – classification and measurement

30.09.2022 30.06.2022 31.12.2021

Financial assets measured at amortized cost 974 586 992 344 1 060 209

Other non-current receivables 787 734 686

Trade receivables 147 246 63 220 125 293

Cash and cash equivalents 198 689 685 029 411 586

Bank deposits over 3 months 410 544 - 265 000

Treasury bonds and bonds guaranteed by the State Treasury 217 320 243 361 248 754

Loans granted - - 8 890

Financial assets measured at fair value through profit or loss: 682 - -

Derivative financial instruments 682 - -

Assets measured at fair value through

other comprehensive income

269 169 249 800 228 661

Bonds issued by foreign governments 269 169 249 800 228 661

Total financial assets 1 244 437 1 242 144 1 288 870

Financial liabilities – classification and measurement

30.09.2022 30.06.2022 31.12.2021*

Financial liabilities measured at amortized cost 101 535 96 852 82 215

Trade payables 67 726 64 042 53 380

Other financial liabilities 33 809 32 810 28 835

Financial liabilities measured at fair value

through profit or loss

28 701 20 528 18 047

Derivative financial instruments 28 701 20 528 18 047

Total financial liabilities 130 236 117 380 100 262

* restated data

In accordance with the requirements of IFRS 9 Financial Instruments, the Parent Company analysed the business model for

managing financial assets and examined the characteristics of contractual cash flows for each component of the bond portfolio,

and concluded that:

 the purpose of investments in domestic and foreign Treasury bonds and domestic bonds guaranteed by the Polish State

Treasury is to hold them to maturity and to collect contractual cash flows;

 investment mandates for managing the foreign bonds portfolio allow selling bonds before maturity as part of the adopted

strategy;

 all bonds purchased meet the SPPI test.

As a result of the analysis conducted, purchased bonds were classified into two financial asset management models which differ in

terms of the entity managing the bond portfolio. Polish Treasury bonds and bonds guaranteed by the Polish State Treasury are

measured at amortized cost, because they are held to collect contractual cash flows. Foreign Treasury bonds are measured at fair

value through other comprehensive income, because of the investment mandate which allows the possibility of the portfolio to be

managed by an Asset Manager.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 16. Sales revenue

Sales revenue – geographical structure 2022**

01.07.2022 – 30.09.2022 01.01.2022 – 30.09.2022

in PLN in % in PLN in %

Domestic sales 7 474 3.04% 22 337 3.58%

Export sales, including: 238 040 96.96% 601 170 96.42%

Europe 35 513 14.46% 111 951 17.96%

North America 185 753 75.67% 433 794 69.57%

South America 881 0.36% 2 411 0.39%

Asia 14 055 5.72% 47 029 7.54%

Australia 1 788 0.73% 5 735 0.92%

Africa 50 0.02% 250 0.04%

Total 245 514 100% 623 507 100%

Sales revenue – geographical structure 2021**

01.07.2021 – 30.09.2021* 01.01.2021 – 30.09.2021*

in PLN in % in PLN in %

Domestic sales 9 280 6.42% 18 992 3.09%

Export sales, including: 135 183 93.58% 596 117 96.91%

Europe 33 546 23.22% 85 580 13.91%

North America 87 073 60.28% 453 838 73.77%

South America 599 0.41% 2 071 0.34%

Asia 11 840 8.20% 48 416 7.88%

Australia 1 991 1.38% 5 823 0.95%

Africa 134 0.09% 389 0.06%

Total 144 463 100% 615 109 100%

* restated data

Sales revenue from export sales in Europe includes sales from the Russian market. In previous financial statements, the Russian

market was disclosed under Asia.

** The data presented relates to the place of residence of the customers of the Group companies: for CD PROJEKT S.A. –

distributors, and for retail sales conducted by GOG sp. z o.o., CD PROJEKT RED STORE sp. z o.o., CD PROJEKT Inc. – end

customers.

Sales revenue – by type of production

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Own production 203 189 489 057 104 262 471 248

Third party production 42 017 132 828 39 781 139 729

Other revenue 308 1 622 420 4 132

Total 245 514 623 507 144 463 615 109

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Sales revenue – by distribution channel

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Games – box issues 1 640 19 076 4 082 57 111

Games – digital issues 194 033 540 872 130 794 533 806

Other revenue 49 841 63 559 9 587 24 192

Total 245 514 623 507 144 463 615 109

Note 17. Operating expenses

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Depreciation and amortization of property, plant and

equipment, intangible assets, expenditure on

development projects and investment properties,

including:

3 425 10 771 4 396 13 284

depreciation on leased buildings 394 1 291 505 1 615

depreciation of leased vehicles 115 288 55 187

Materials and energy used 964 2 181 443 2 081

External services, including: 28 345 84 019 31 497 100 235

costs of short-term leases and low value leases 175 518 116 348

Taxes and fees 533 1 086 292 872

Salaries and wages, social insurance and other

benefits

36 932 106 596 41 344 145 336

Business travel 1 078 1 640 266 334

Cost of using company cars 55 172 65 161

Cost of goods for resale and materials sold 30 598 94 921 29 710 103 997

Costs of products and services sold 48 602 85 640 23 217 111 126

Other costs 914 2 411 250 1 620

Total 151 446 389 437 131 480 479 046

Selling expenses 54 379 155 720 55 322 186 505

Total administrative expenses, including: 17 867 53 156 23 231 77 418

cost of research work 404 4 308 1 718 16 170

Cost of sales 79 200 180 561 52 927 215 123

Total 151 446 389 437 131 480 479 046

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 18. Other operating income and expenses

Other operating income

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Other sales 3 296 3 337 52 118

Write-off of past liabilities of the GOG.COM segment 2 230 2 230 - -

Subsidies 1 823 2 754 1 898 1 934

Rental income 1 696 5 046 1 577 4 602

Release of provisions for minimum guarantees - 376 - -

Fixed assets and goods for resale received free of

charge

306 306 283 284

Gains on disposal of non-current assets 256 265 3 4

Income from re-invoicing 197 595 303 861

Release of unused provisions for costs - 232 274 408

Settlement of the financial liabilities in respect of

leases

- - 18 18

Damages received - 2 454 457

Other 15 61 53 82

Total other operating income 9 819 15 204 4 915 8 768

Other operating expenses

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Cost of sales of other sales 3 925 3 957 35 35

Cost of rental 994 2 825 804 2 948

Impairment write-downs of tangible fixed assets,

intangible assets and expenditure on development

work

911 911 - -

Depreciation of investment properties 462 1 391 454 1 330

Costs relating to re-invoicing 197 595 303 862

Donations 89 1 312 50 67

Cost of destruction of materials and goods for resale 12 2 771 1 482

Disposal of fixed assets and intangible assets - 483 593 693

Disposal of investment properties - - - 51

Help Me Refund – funds to be returned - - - 33

Inventory count deficits - - - 7

VAT written off - - 4 8

Other 193 447 17 59

Total other operating expenses 6 783 14 692 2 261 6 575

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 19. Finance income and costs

Finance income

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Interest income 9 344 27 363 322 729

on current bank deposits 5 794 14 811 - 41

on bonds 3 550 12 337 274 578

on loans - 215 48 110

Other finance income 23 875 41 226 9 662 11 658

net foreign exchange gains 15 890 11 907 7 696 -

gain on redemption of bonds 4 929 22 437 - -

settlement and measurement of derivative financial

instruments

3 056 6 880 1 966 11 648

forward contracts – Management Board - 2 - 7

other finance income - - - 3

Total finance income 33 219 68 589 9 984 12 387

Finance costs

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Interest expense 206 923 346 1 153

on bonds 39 240 204 620

on lease contracts 137 404 101 441

on liabilities to the State Treasury 30 278 40 91

on trade payables - 1 1 1

Other finance costs 18 070 36 590 8 870 17 217

net foreign exchange losses - - - 15 637

settlement and measurement of derivative financial

instruments

17 990 36 343 8 787 -

loss on redemption of bonds - - - 1 305

commission and fees on purchase of bonds 80 247 83 275

Total finance costs 18 276 37 513 9 216 18 370

Net finance income/expense 14 943 31 076 768 (5 983)

Note 20. Leases of low-value assets and short-term leases

The Group concluded lease contracts for office equipment (multifunctional photocopiers, kitchen appliances) and residential

premises which potentially meet recognition criteria for leases under the new IFRS 16. However, the Group considered these

contracts to be short-term leases and leases of low-value assets and decided not to apply the new requirements for leases to these

assets, as permitted by paragraph 5 of the standards. In such cases, lease payments are charged to costs of the period to which

they relate, either on a straight-line basis or in some other systematic way that reflects the distribution of costs over the life of the

contract (information on the cost of these leases incurred in the period from 1 July to 30 September 2022 is included in Note 17).

As at 30 September 2022, 30 June 2022 and 31 December 2021, future minimum payments in respect of irrevocable short-term

leases and leases of low-value assets were as follows:

30.09.2022 30.06.2022 31.12.2021

Up to 1 year 138 226 121

From 1 to 5 years 140 131 149

Total 278 357 270

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 21. Issue, redemption and repayment of debt and equity securities

Issue of debt securities

Not applicable.

Issue of equity securities

Specification 30.09.2022 30.06.2022 31.12.2021

Number of shares in thousands 100 739 100 739 100 739

Par value of shares in PLN 1 1 1

Share capital 100 739 100 739 100 739

Note 22. Dividend paid (or declared) and received

On 28 June 2022, the Annual General Meeting of Shareholders of CD PROJEKT S.A. made a decision to allocate a part of the profit

earned by the Parent Company in 2021 for distribution among the shareholders in the form of dividend. In accordance with the

resolution, on 12 July 2022 the Parent Company paid out a total of PLN 100 739 thousand, i.e. PLN 1 per share. 100 738 800 shares

of the Parent Company carried the right to a dividend.

Note 23. Transactions with related entities

Terms and conditions of transactions with related entities

The terms and conditions of intra-group transactions were determined on an arm’s length basis. The essence of this principle is

based on the premise that the terms and conditions agreed in transactions between related parties should not differ from those

that would be agreed between independent parties in a comparable situation.

In the process of determining prices in controlled transactions related entities belonging to the CD PROJEKT Group refer to methods

provided for in OECD Guidelines and in the national legislation, including the safe harbour legislation. The selection of an

appropriate method of verifying transfer prices is preceded by a detailed analysis of each transaction which involves, among other

things, the distribution of functions between parties to the transaction, assets engaged by the parties and the distribution of risks.

Prices are determined using the most appropriate method for a given type of transaction in such a way that the terms of transactions

between the CD PROJEKT Group companies correspond to the terms which independent entities would agree to adopt in

comparable circumstances.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Transactions with related entity after consolidation eliminations

Sales to related entities Purchases from related entities

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

SUBSIDIARIES

CD PROJEKT Co., Ltd.

(liquidated)

- - - - - - 1 016 4 171

Spokko sp. z o.o. 324 1 061 684 1 071 - - - -

CD PROJEKT RED

Vancouver Studio Ltd.

4 33 - - 4 342 12 124 1 648 1 648

The Molasses Flood LLC 2 2 - - 9 737 20 048 - -

MEMBERS OF THE MANAGEMENT BOARDS OF GROUP COMPANIES

Marcin Iwiński - 1 2 18 - - - -

Adam Kiciński - - - 4 - - - -

Piotr Nielubowicz - 2 2 7 - - - -

Michał Nowakowski 2 5 1 11 - - - -

Adam Badowski 1 6 - 1 - - - -

Piotr Karwowski 2 6 1 3 - - - -

Urszula Jach - Jaki - 1 - 1 - - - -

Maciej Gołębiewski - 1 - - - - - -

Paweł Zawodny - 7 - - - - - -

Jeremiah Cohn - 1 - - - - - -

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Receivables from related entities Liabilities to related entities

30.09.2022 30.06.2022 31.12.2021 30.09.2022 30.06.2022 31.12.2021

SUBSIDIARIES

Spokko sp. z o.o. 238 445 9 113 - - -

CD PROJEKT RED Vancouver

Studio Ltd.

1 144 1 104 1 008 465 419 164

The Molasses Flood LLC - - - 2 530 995 1 019

MEMBERS OF THE MANAGEMENT BOARDS OF GROUP COMPANIES

Marcin Iwiński - - - - - 19

Adam Kiciński - - - - - 5

Michał Nowakowski - - - 1 - 7

Adam Badowski 1 1 7 - - 5

Urszula Jach - Jaki - - - 5 - -

Paweł Zawodny - 6 - - - -

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 24. Unpaid loans or defaults on loan agreements in cases where no

corrective measures were adopted by the balance sheet date

Not applicable.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 25. Changes in contingent liabilities or contingent assets which occurred after the end of the last financial year

Contingent liabilities in respect of guarantees, sureties and collateral

Specification Currency 30.09.2022 30.06.2022 31.12.2021

mBank S.A.

Voluntary submission to execution Agreement for payment cards PLN 920 920 920

Bill of exchange agreement Framework agreement on financial market transactions PLN 50 000 50 000 50 000

Bill of exchange agreement Bank guarantee securing a rental contract PLN - - 667

Bill of exchange agreement Bank guarantee securing a rental contract PLN 427 427 -

Ingenico Group S.A. (previously: Global Collect Services BV)

Contractual surety Surety against liabilities of GOG sp. z o.o. EUR - - 155

Mazowiecka Jednostka Wdrażania Programów Unijnych

Contractual commitment

Commitment to incur operating and renovation expenditures on

leased space

PLN 21 23 58

Narodowe Centrum Badań i Rozwoju

Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0105/16 PLN 7 711 7 711 7 711

Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0110/16 PLN 3 846 3 846 3 846

Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0112/16 PLN 3 692 3 692 3 692

Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0118/16 PLN 1 358 5 324 5 324

Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0120/16 PLN 1 204 1 204 1 204

Pekao Leasing Sp. z o.o.

Bill of exchange agreement Lease contract 37/1991/21 PLN 352 388 442

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Santander Bank Polska S.A. (previously: BZ WBK S.A.)

Bill of exchange agreement Framework agreement on financial market transactions PLN 23 500 23 500 23 500

Bank Polska Kasa Opieki Spółka Akcyjna

Bill of exchange agreement Framework agreement on financial market transactions PLN 50 000 50 000 35 000

BNP Paribas Bank Polska S.A.

Bill of exchange agreement Framework agreement on financial market transactions PLN 26 600 26 600 26 600

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 26. Changes in the structure of the Group and Group companies during

the reporting period

On 20 July 2022, an increase in the share capital of Spokko sp. z o.o. was entered in the Register of Businesses. The increase

resulted from the adoption on 24 May 2022 by the Extraordinary Shareholders Meeting of that company of a resolution on an

increase in the share capital. The share capital of Spokko sp. z o.o. was increased by creating 589 new shares of PLN 50.00 par

value each, i.e. from PLN 25 000.00 to PLN 54 450.00 584 newly created shares in the increased share capital were taken up by

CD PROJEKT S.A., and the remaining 5 shares, by one of the Company’s shareholders, Maciej Weiss. As a result of the said

transactions, the share capital of CD PROJEKT S.A. in the voting rights and the capital of Spokko sp. z o.o. increased from 74.0% to

87.6%.

On 8 August 2022, the Extraordinary Shareholders Meeting of CD PROJEKT RED STORE sp. z o.o. adopted a resolution on

increasing the share capital of that company by creating 100 new shares with a par value of PLN 50 each, i.e. from PLN 24 000.00

to PLN 29 000.00. All newly created shares were taken up by CD PROJEKT S.A. i.e. the sole shareholder. The newly created shares

were fully paid up by a contribution in cash of PLN 500 000.00. The share premium was recognized as part of the company’s

supplementary capital. The increase in the share capital was registered in the Register of Businesses of the National Court Register

on 17 August 2022.

On 17 September 2022, the Parent Company received confirmation of completing the process of liquidation of its subsidiary

CD PROJEKT Co., Ltd. 7 June 2022 was indicated as the date of the effective completion of the liquidation of that company.

On 26 September 2022, the share capital of CD PROJEKT RED Vancouver Studio Ltd. was increased. As part of the increase,

640 000 new shares in that company were created. All newly created shares were taken up by CD PROJEKT S.A. i.e. the sole

shareholder. The newly created shares were fully paid up by a contribution in cash of CAD 640 000.00. The objective of increasing

the capital of CD PROJEKT RED Vancouver Studio Ltd. was to finance the expansion of its IT infrastructure and office.

Note 27. Agreements that may result in future changes in the proportions of

shares held by shareholders and bondholders

On 24 May 2016, the General Shareholders Meeting of the Parent Company passed a resolution introducing an incentive plan for

2016-2019.

As a result of a positive verification of the achievement of the plan’s objectives conducted in 2020, a total of 5,167,500 entitlements

were subject to execution by eligible persons. As part of the settlement of the plan, the Parent Company disposed of 516,700 own

shares purchased from the market for this purpose for the benefit of the eligible persons. The remaining part of the entitlements

was realized in the form of issuing 4,650,800 subscription warrants.

As at the end of the reporting period, rights from 4,618,800 from among a total of 4,650,800 subscription warrants giving rights to

take up the Parent Company’s shares of the new issue as part of the conditional increase in the share capital of the Parent Company

remained exercised. On 17 October 2022, in its current report no. 43/2022

, the Management Board of the Company announced

that that on the same date, an entitled participant of the incentive program submitted to the Company a statement which indicates

the take-up of 32,000 Series M ordinary bearer shares of the Parent Company as a result of exercising the rights incorporated by

previously assigned Series B subscription warrants, each of which entitled its holder to claim one share at an issue price of PLN

25.70. The rights incorporated by the shares will emerge on the day the shares are entered on the securities account belonging to

the participant (by registration in the securities depository maintained by the National Depository of Securities). A one-year lock-up

period applies to the shares. Consequently, 100% of rights incorporated by the warrants issued by the Parent Company under the

Incentive Program 2016-2019 have now been exercised.

Based on the resolutions of the Company’s General Shareholders Meeting of 28 July 2020 and 22 September 2020, another, third

issue of the incentive plan was introduced for 2020-2025.

In accordance with the adopted assumptions, no more than 4,000,000 entitlements may be assigned under the plan. The incentive

plan may be realized alternatively through the issue and allocation to the entitled persons of subscription warrants which give them

the right to subscribe for separately issued shares of the Parent Company as part of the conditional share capital increase, or

through offering to the entitled persons shares acquired by the Parent Company as part of the buy-back of its own shares carried

out for this purpose. Taking up and the exercising of rights from the subscription warrants or, as the case may be, purchasing the

Parent Company’s shares by the eligible persons will be conditional upon the Parent Company’s determining that the objectives

and criteria of the plan have been met. The plan includes performance-related objectives (80% of entitlements), market related

objectives (20% of entitlements), individual objectives in selected cases and, in each case, the loyalty criterion which applies until

the date of determining that the plan objectives and criteria have been met. As at the date of publication of these financial

statements, 2,132,000 of the entitlements granted remained in the incentive plan for 2020-2025.

Based on the results achieved in 2020 and 2021 and the assumptions for the subsequent years of the plan, the Management Board

of the Parent Company assessed the possibility of achieving the performance targets set in the programme over the entire period

of the plan duration and revised the estimates, considering it most likely that the performance targets would not be achieved over

the period of the incentive plan for 2020-2025.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 28. Tax settlements

Tax settlements and other areas of activities regulated by the tax law may be subject to inspections by administrative bodies which

are entitled to impose high penalties or sanctions. The lack of reference to established legal regulations in Poland results in

ambiguities and inconsistencies in the binding regulations. Frequent differences of opinion as to the legal interpretation of tax

regulations, both internally within the state bodies and between the state bodies and enterprises, result in areas of uncertainty and

conflict arising. Due to these factors, the tax risk in Poland is considerably higher than that usually existing in countries with better

developed tax systems.

In accordance with the general rule, tax settlements may be subject to inspections within five years from the end of the year in

which tax was paid.

Following the fulfilment of the criteria set out in Article 19 of the Act of 30 May 2008 on certain forms of innovation support

(consolidated text, Journal of Laws of 2021, item 706), the Minister of Development and Technology, by decision

No. DNP-V.4241.16.2022 of 11 August 2022, maintained the status of a research and development centre granted to the Parent

Company by decision 4/CBR/18 of 19 June 2018. The status allows the Parent Company to use the research and development relief

provided for in the Act of 15 February 1992 on corporate income tax (consolidated text, Journal of Laws of 2021, item 1800).

With effect from 1 January 2019, provisions were introduced into the Act on corporate income tax granting preferential taxation at

the 5% tax rate for qualified income earned by a taxpayer from qualified intellectual property rights. Having met the prerequisites

and formal conditions contained in the said legislation, the Group accounts for income (in respect of selected sources of income)

taking this tax relief into account.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 29. Explanations to the condensed consolidated statement of cash flows

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Cash and cash equivalents reported in the statement of

cash flows

198 689 198 689 690 681 690 681

Cash and cash equivalents in the balance sheet 198 689 198 689 690 681 690 681

Depreciation and amortization 3 425 10 771 4 396 13 284

Amortization of intangible assets 535 1 615 767 2 386

Amortization of expenditure on development projects 211 833 522 1 501

Depreciation of property, plant and equipment 2 672 8 297 3 097 9 368

Depreciation of investment properties 7 26 10 29

Foreign exchange gains/(losses) arising on the following

items:

(19 888) (24 769) (9 705) (11 719)

Foreign exchange gains/(losses) on measurement of

bonds

(19 888) (24 769) (9 705) (11 719)

Interest and shares in profits comprise: (9 168) (26 719) (17) 332

Interest on bank deposits (5 794) (14 811) - (41)

Interest on bonds (3 511) (12 097) (70) 42

Interest accrued on loans granted - (215) (48) (110)

Interest on lease contracts 137 404 101 441

(Gains)/losses on investing activities arising on the

following items:

13 796 15 282 9 460 14 111

Sale of property, plant and equipment (260) (274) (6) (14)

Net carrying amount of property, plant and equipment 4 9 3 10

Net carrying amount of non-current assets scrapped - 200 593 690

Net carrying amount of intangible assets scrapped - 283 - 3

Net carrying amount of investment properties

scrapped

- - - 51

Impairment write-downs of property, plant and

equipment, intangible assets and expenditure on

development work

911 911 - -

Settlement and measurement of derivative financial

instruments

17 990 36 343 8 787 11 791

Commission and fees on purchase of bonds 80 247 83 275

Proceeds from redemption of bonds (34 672) (192 373) - (66 631)

Value of bonds purchased 29 743 169 936 - 67 936

Change in provisions results from the following items: 13 275 (36 914) (49 463) (285 827)

Change in provisions for liabilities 19 458 (29 545) (49 246) (373 920)

Change in provision for costs of performance-related

and other remuneration recognized under

expenditure on development projects

(6 183) (7 369) (217) 88 093

Change in inventories results from the following items: 644 1,394 339 (9,607)

Change in inventories 644 1,394 339 (9,607)

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Change in receivables results from the following items: (87 658) (15 016) 88 877 1 118 518

Change in current receivables in the balance sheet (80 029) 41 775 81 968 1 109 741

Change in non-current receivables in the balance

sheet

(53) (101) (16) (25)

Change in prepayments for investment properties - (79) - -

Withholding tax paid abroad (6 720) (31 353) 317 315

Income tax settled against withholding tax - 27 961 - -

Adjusted for current income tax (1 133) (26 751) - -

Change in prepayments for development projects 211 (26 575) 6 722 8 456

Change in prepayments for property, plant and

equipment and intangible assets

66 107 (114) 31

Change in current liabilities, excluding loans and

borrowings, results from the following items:

4 762 12 285 12 747 (76 816)

Change in current receivables in the balance sheet (82 424) 7 994 21 601 (11 783)

Adjusted for current income tax (6 468) 17 978 (495) (53 192)

Change in other financial liabilities (8 867) (12 789) (8 313) (12 285)

Change in liabilities in respect of security deposits - - - (73)

Change in liabilities resulting from purchase of

property, plant and equipment

1 788 (933) (199) 334

Change in liabilities resulting from purchase of

intangible assets

(6) 25 153 183

Change in liabilities resulting from dividend from

retained earnings

100 739 - - -

Change in liabilities resulting from purchase of

investment properties

- 10 - -

Change in other assets and liabilities results from the

following items:

(11 201) (45 874) (12 971) (18 152)

Change in prepayments and accruals in the balance

sheet

(12 722) (32 489) (14 425) (12 359)

Change in deferred income in the balance sheet 1 581 (13 205) 1 517 (5 613)

Adjusted for accruals reported under liabilities (60) (180) (60) (180)

Other - - (3) -

“Other adjustments” comprise: 1 539 6 869 9 348 28 206

Costs of the incentive plan 967 3 285 8 901 26 703

Measurement of derivative financial instruments (714) (651) (260) (438)

Amortization and depreciation written off, reported

under cost of sales, consortium settlements and other

operating expenses

- 1 046 - -

Amortization and depreciation reported under cost of

sales, consortium settlements and other operating

expenses

806 2 470 644 1 853

Foreign exchange differences on translation 480 781 81 106

Other adjustments - (62) (18) (18)

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 30. Cash flows and non-monetary changes resulting from changes in liabilities in financing activities

01.07.2022 Cash flows

Non-monetary changes

30.09.2022

Takeover of

leased fixed

assets

Termination of

a lease

contract

Foreign

exchange gains

and losses

Interest

accrued

Adoption of

resolution on

the payment of

dividend

Transfer of own

Lease liabilities 19 362 (909) 194 - 167 137 - - 18 951

Liabilities to

shareholders in

respect of

dividend

payment

100 739 (100 739) - - - - - - -

Total 120 101 (101 648) 194 - 167 137 - - 18 951

01.01.2022 Cash flows

Non-monetary changes

30.09.2022

Takeover of

leased fixed

assets

Termination of

a lease

contract

Foreign

exchange gains

and losses

Interest

accrued

Adoption of

resolution on

the payment of

dividend

Transfer of own

Lease liabilities 16 655 (3 049) 4 775 - 168 404 - - 18 953

Liabilities to

shareholders in

respect of

dividend

payment

- (100 739) - - - - 100 739 - -

Total 16 655 (103 788) 4 775 - 168 404 100 739 - 18 953

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

01/07/2021 Cash flows

Non-monetary changes

30.09.2021

Takeover of

leased fixed

assets

Termination of

a lease

contract

Foreign

exchange gains

and losses

Interest

accrued

Adoption of

resolution on

the payment of

dividend

Transfer of own

Lease liabilities 17 719 (1 018) 143 (18) 72 101 - - 16 999

Total 17 719 (1 018) 143 (18) 72 101 - - 16 999

01.01.2021 Cash flows

Non-monetary changes

30.09.2021

Takeover of

leased fixed

assets

Termination of

a lease

contract

Foreign

exchange gains

and losses

Interest

accrued

Adoption of

resolution on

the payment of

dividend

Transfer of own

Lease liabilities 18 939 (3 061) 551 (18) 147 441 - - 16 999

Liabilities to

shareholders in

respect of

dividend

payment

- (503 694) - - - - 503 694 - -

Receivables from

eligible persons

in the incentive

plan

- 2 149 - - - - - (2 149) -

Total 18 939 (504 606) 551 (18) 147 441 503 694 (2 149) 16 999

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 31. Post balance sheet date events

On 4 October 2022, in current report no. 37/2022, the Management Board of the Parent Company informed of the adoption of the

Long-Term Strategic Growth Outlook of the CD PROJEKT Group. The following were identified as directions of the Group’s strategic

development in the coming years: continuing to increase production capacity, enhancing game experiences with multiplayer

features and continuing to expand franchises. The full content of the document is attached to the current report.

On 4 October 2022, in current report no. 38/2022, the Management Board of the Parent Company informed that the Company had

received Mr Marcin Iwiński’s resignation as Vice-President for International Contacts and Member of the Management Board of the

Company, effective at the end of the day on 31 December 2022 and information on his intention to run for the position of Supervisory

Board Chairman from the day immediately following the expiration of his membership of the Management Board.

On 4 October 2022, in current report no. 39/2022, the Management Board of the Parent Company informed that the Company had

received Mr Piotr Pągowski’s resignation as a Member of the Supervisory Board and Member of the Audit Committee of the

Company, effective as of the end of the day on 31 December 2022.

On 4 October 2022, in current report no. 40/2022 (corrected by current report no. 40/2022K), the Management Board of the Parent

Company informed that based on Resolution no. 4 of the Extraordinary Shareholders Meeting of 29 November 2016, the

Management Board decided on the conditions of and procedure for conducting a buyback of the Parent Company’s shares with

a view to their voluntary redemption. As a result of the buyback conducted based on that decision, the Parent Company purchased

860,290 of its own shares representing 0.854% of its share capital between 5 October and 24 October 2022. The buyback was

conducted on the assumption that the Parent Company would purchase no more than 2 million own shares for a total of no more

than PLN 100 million. The Management Board of the Parent Company provided detailed information on the course of the buyback

in current reports nos. 42/2022, 44/2022 and 45/2022.

On 17 October 2022, in its current report no. 43/2022, the Management Board of the Parent Company announced that on the same

date, an entitled participant of the incentive program executed in 2016-2019 submitted to the Company a statement which indicates

the take-up of 32,000 Series M ordinary bearer shares of the Parent Company as a result of exercising the rights incorporated by

previously assigned Series B subscription warrants, each of which entitled its holder to claim one share at an issue price of PLN

25.70. The rights incorporated by the shares will emerge on the day the shares are entered on the securities account belonging to

the participant (by registration in the securities depository maintained by the National Depository of Securities). A one-year lock-up

period applies to the shares. Consequently, 100% of rights incorporated by the warrants issued by the Parent Company under the

Incentive Program 2016-2019 have now been exercised.

On 18 October 2022, as a result of decisions adopted by the Board of Directors of CD PROJEKT Inc. and the Management Board

of its sole shareholder CD PROJEKT S.A. the share capital of CD PROJEKT Inc. was increased from USD 3 million 500 thousand to

USD 5 million, i.e. by USD 1 million 500 thousand, by increasing the value of the existing 10,000 shares by USD 150 each. The

increased value of the existing shares was paid up in full by a cash contribution of USD 1 million 500 thousand made by

CD PROJEKT S.A. The capital increase was intended to enable finalizing the first stage of the process of acquisition of shares in

The Molasses Flood LLC (payment of the second tranche relating to acquisition of 60% of shares in that company).

On 16 November 2022, in current report no. 46/2022

, the Management Board of the Parent Company informed that Mr Marcin

Iwiński, as an entitled shareholder representing more than one twentieth of the share capital of the Company, submitted a request

to convene an Extraordinary General Meeting and to include in the agenda of the said Meeting a vote on the appointment of Mr.

Marcin Iwiński as a member of Supervisory Board of the Company. In connection with the submitted request, Mr. Marcin Iwiński has

officially presented his candidature and made the legally required statements in this respect.

On 17 November 2022, in current report no. 47/2022, the Management Board of the Parent Company informed that a merger plan

between the Company, as the surviving company, and its wholly-owned subsidiary CD PROJEKT RED STORE sp. z o.o. as the target

company was agreed and signed. The planned merger will be effected by transferring all assets of the target company to the Parent

Company in accordance with Article 492 § 1 item 1 of the Commercial Companies Code (merger by acquisition) in connection with

Article 516 § 6 of the Commercial Companies Code, without increasing the share capital of the Parent Company and without

exchanging the shares in the target company for shares in the Parent Company. The merger is intended to simplify the structure of

the Group in connection with the plans to continue the existing operations of the Target Company in cooperation with a specialized

third party – in line with the Long-Term Strategic Growth Outlook of CD PROJEKT Group. The content of the Merger Plan has been

attached to the current report.

On 22 November 2022, the Management Board of the Parent Company announced convening an Extraordinary Shareholders

Meeting of the Parent Company to be held on 20 December 2022. The agenda of the Extraordinary Shareholders Meeting will

include, firstly, resolutions on the appointment of Mr Marcin Iwiński to the Supervisory Board, changes to the remuneration of

Members of the Supervisory Board, cancellation of the 2020-2025 Incentive Plan, introduction of the 2023-2027 Incentive Plan

and the related issue of subscription warrants and the conditional increase in the share capital, and the merger of the Parent

Company with CD PROJEKT RED STORE sp. z o.o. The full agenda, including additional information in this respect, is presented in

current report no. 49/2022. Draft resolutions are available in current report no. 50/2022

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2017

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Additional information

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Litigation pending

During the reporting period, the following litigation was pending (as at the date of publication of the financial statements).

Criminal cases in which CD PROJEKT S.A. has the status of the aggrieved party

Case against private individuals (including former members of the Management Board of Optimus S.A.) for acts to

the detriment of the Company

On 27 October 2016, the Regional Court in Warsaw, in case ref. no. XVIII K 126/09 as a result of the indictment of the Public

Prosecutor’s Office of the Regional Prosecutor’s Office in Warsaw to the Regional Court, passed a sentence convicting Michał L.,

Piotr L. and Michał D., ascribing to them the commission of acts under Article 296 § 1 of the Penal Code and Article 296 § 3 of the

Penal Code and others. The Parent Company acted as an auxiliary prosecutor at first instance (a status it retains until the end of the

proceedings). The scope of damages awarded under Article 46 of the Penal Code amounted to a total of PLN 210 thousand, with

the damage ascertained by the court amounting to at least PLN 16 million according to the operative part of the verdict (this method

of determining damage results from the principles of adjudication in criminal proceedings). The Company appealed against the

judgment, requesting that it be amended, including, inter alia, in the part relating to the amount of damages awarded to the

Company. Appeals were also filed by the defendants’ counsels - against the entire decision. On 26 October 2017, the Court of

Appeals overturned the judgment of the Court of First Instance in the case in its entirety and remitted the case to the Court of First

Instance for retrial in its entirety. The Parent Company is acting as an auxiliary prosecutor in the case.

Cases in which CD PROJEKT S.A. has the status of the defendant

Class action lawsuit against CD PROJEKT S.A. concerning US securities

On 25 December 2020 and 15 January 2021, the Management Board of the Parent Company received confirmation from a law firm

cooperating with the Company of the filing of civil class actions before the United States District Court for the District of Central

California, by law firms acting on behalf of groups of holders of US financial instruments listed under the symbols “OTGLY” and

“OTGLF” and based on the Company’s shares. The plaintiffs seek a judicial determination whether the actions of the Company and

its Management Board Members in connection with the launch of the Cyberpunk 2077 game constituted a violation of federal

regulations by, among other things, misleading investors, thereby leading to losses on their part. In the following months, the

Company became aware of two other lawsuits also filed in the local court, identical in subject matter and directed against

CD PROJEKT. The contents of all the said lawsuits did not specify the value of the claim. On 18 May 2021, the Company was informed

that the court consolidated the lawsuits filed and selected a lead plaintiff. Following consolidation, all four lawsuits filed are being

dealt with in a single proceeding.

On 29 June 2021, the Company received a copy of the lawsuit filed against the Company, as well as the members of its Management

Board, by the law firm representing the lead plaintiff and the other qualifying holders of US securities listed under the symbols

“OTGLY” and “OTGLF”. The content of the lawsuit filed did not differ in subject matter from the previously filed unconsolidated

lawsuits in this regard, nor did it specify the value of the claims.

On 12 August 2021, the Company filed a response to the claim seeking dismissal of the action. Subsequently, on 5 October 2021,

the Company received a pleading from the plaintiffs challenging the motion to dismiss, to which the Company responded on

17 November 2021, again seeking dismissal of the action.

On 7 December 2021, the Company entered into settlement negotiations with the plaintiffs, resulting in the signing of a Settlement

Term Sheet on 16 December 2021, whereby the Company agreed to pay the plaintiffs the amount of USD 1 850 thousand in

exchange for the waiver of all claims against the Company. A settlement agreement with the Company’s insurer, Colonnade

Insurance S.A., branch in Poland, was also obtained.

On 27 January 2022, the Company entered into a formal settlement document, the Stipulation Agreement, confirming the findings

of the Settlement Term Sheet. The Stipulation Agreement, like the Settlement Term Sheet previously entered into, contains

a statement that there is no admission of any fault on the part of the Company or the other defendants.

The company expects to complete the procedure to obtain a settlement within the next few months.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Shareholding structure

Shareholders holding directly or indirectly through subsidiaries at least 5% of the total number of

votes at the Parent Company’s General Shareholders Meeting as at the date of publication of the

quarterly report

The Parent Company’s share capital amounts to PLN 100 738 800 and consists of 100 738 800 shares with a nominal value of

PLN 1 each. The shareholding structure, including the percentage share in the share capital and at the General Shareholders

Meeting of the Parent Company, is updated on the basis of formal notifications received by the Parent Company from shareholders

holding at least 5% of the total number of votes at the General Shareholders Meeting of the Parent Company.

Number of votes at the

GSM

% of votes at the GSM

Marcin Iwiński 12 873 520 12.78%

Michal Kiciński

10 433 719 10.36%

Piotr Nielubowicz 6 858 717 6.81%

The Goldman Sachs Group, Inc.

6 827 314 6.78%

According to current report no. 33/2021 of 26 May 2021.

According to current report no. 41/2022 of 6 October 2022, the total percentage share of The Goldman Sachs Group, Inc.’s votes

resulting from shares (1.76%) and other financial instruments held (5.02%) was 6.78% as at 3 October 2022. According to the

notification in this respect received by the Parent Company, The Goldman Sachs Group, Inc. holds indirectly 1 775 065 of votes

attached to shares, 1 850 802 votes which may be obtained as a result of exercising or conversion of a financial instrument

constituting securities that are the subject of a loan and 3 201 447 votes resulting from financial instruments of another type.

Changes in the shareholding structure of the Parent Company

In the period presented, the Parent Company received notifications concerning qualifying changes in the number or votes or the

Company’s shares held solely with respect to the percentage share of votes held by The Goldman Sachs Group, Inc. The most

recent data in this respect received by the Parent Company is presented in the section above.

After the balance sheet date, a buyback of the Parent Company’s shares was conducted. The Management Board of the Parent

Company informed of the decision taken in this regard in current report no. 40/2022 (corrected by current report no. 40/2022K

As a result of the buyback conducted based on that decision, the Parent Company purchased 860,290 of its own shares

representing 0.854% of its share capital between 5 October and 24 October 2022. The Management Board of the Parent Company

provided detailed information on the course of the buyback in current reports nos.

42/2022, 44/2022 and 45/2022.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Parent Company’s shares held by members of the Management and

Supervisory Boards

Changes in the number of shares held by members of the Management and Supervisory Boards*

Name and surname Position As at 01.01.2022 As at 30.09.2022 As at 28.11.2022

Adam Kiciński

President of the

Management Board

4 046 001 4 046 001 4 046 001

Marcin Iwiński

Vice-President of the

Management Board

12 873 520 12 873 520 12 873 520

Piotr Nielubowicz

Vice-President of the

Management Board

6 858 717 6 858 717 6 858 717

Adam Badowski

Member of the

Management Board

692 640 692 640 692 640

Michał Nowakowski

Member of the

Management Board

580 290 580 290 580 290

Piotr Karwowski

Member of the

Management Board

108 728 108 728 108 728

Paweł Zawodny

Member of the

Management Board

n/a 18 508 18 508

Katarzyna Szwarc

Chair of the

Supervisory Board

10 10 10

Piotr Pągowski

Deputy Chair of the

Supervisory Board

- - 33

Maciej Nielubowicz

Supervisory Board

Member

51 51 51

* Based on statements and notifications submitted to the Company.

Reference to published estimates

The Group did not publish estimated data relating to the period presented.

Interim condensed separate financial

statements of CD PROJEKT S.A.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed separate income statement

Note

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Sales revenue 203 081 494 049 103 206 470 379

Sales of products 201 452 485 205 101 643 461 621

Sales of services 359 1 495 509 4 137

Sales of goods for resale and materials 1 270 7 349 1 054 4 621

Cost of sales of products, services, goods for

resale and materials

49 835 90 842 23 017 111 571

Costs of products and services sold 48 617 85 397 21 871 106 873

Cost of goods for resale and materials sold 1 218 5 445 1 146 4 698

Gross profit/(loss) on sales 153 246 403 207 80 189 358 808

Selling expenses 44 650 125 992 41 455 144 423

Administrative expenses 14 906 44 223 19 657 66 606

Other operating income 7 881 13 499 5 238 10 371

Other operating expenses 6 874 15 467 2 804 8 497

(Impairment)/reversal of impairment

of financial instruments

(9) (17) (5) (6)

Operating profit/(loss) 94 688 231 007 21 506 149 647

Finance income 33 955 70 305 10 783 7 717

Finance costs 18 740 40 114 9 199 12 393

Profit/(loss) before tax 109 903 261 198 23 090 144 971

Income tax expense A 13 030 52 465 1 403 12 919

Net profit/(loss) 96 873 208 733 21 687 132 052

Net earnings/(loss) per share (in PLN) - - - -

Basic for the reporting period 0.96 2.07 0.22 1.31

Diluted for the reporting period 0.96 2.07 0.22 1.31

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed separate statement of

comprehensive income

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Net profit/(loss) 96 873 208 733 21 687 132 052

Other comprehensive income subject to reclassification

to gains or losses after specific conditions have been

met

(6 298) (14 289) 1 793 3 571

Measurement of derivative financial instruments – fair

value through other comprehensive income, taking

into account the tax effect

(6 298) (14 289) 1 793 3 571

Other comprehensive income not subject to

reclassification to gains or losses

- - - -

Total comprehensive income 90 575 194 444 23 480 135 623

Interim condensed separate statement of financial

position

Note 30.09.2022 30.06.2022 31.12.2021*

NON-CURRENT ASSETS 1 053 387 1 009 939 887 663

Property, plant and equipment 129 180 114 400 103 986

Intangible assets 70 754 70 530 59 086

Expenditure on development projects 448 004 432 382 347 822

Investment properties 42 961 55 831 57 082

Goodwill C 49 168 49 168 49 168

Investments in subsidiaries 73 364 71 052 43 447

Prepayments and deferred costs 3 535 5 834 4 741

Other financial assets G 197 509 173 589 178 540

Deferred tax assets A 38 515 36 771 43 418

Other receivables F,G 397 382 373

CURRENT ASSETS 1 073 205 1 077 337 1 173 501

Inventories 10 807 10 747 13 539

Trade receivables F,G 147 332 63 394 123 821

Current income tax receivable - 1 587 -

Other receivables F 46 475 49 081 113 163

Prepayments and deferred costs 8 093 5 386 4 015

Other financial assets G 288 980 319 572 308 168

Bank deposits over 3 months G 410 544 - 265 000

Cash and cash equivalents G 160 974 627 570 345 795

TOTAL ASSETS 2 126 592 2 087 276 2 061 164

* restated data

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 30.09.2022 30.06.2022 31.12.2021

EQUITY 1 966 039 1 874 497 1 869 049

Share capital 21* 100 739 100 739 100 739

Supplementary capital 1 502 147 1 502 147 1 366 952

Share premium 115 909 115 909 115 909

Other reserves 38 511 43 842 49 515

Retained earnings - - (4 179)

Net profit (loss) for the period 208 733 111 860 240 113

NON-CURRENT LIABILITIES 28 134 25 984 29 756

Other financial liabilities G 16 489 16 890 14 757

Other liabilities 2 680 2 740 2 860

Deferred income 4 127 5 495 6 403

Provision for retirement and similar benefits 368 368 368

Other provisions B 4 470 491 5 368

CURRENT LIABILITIES 132 419 186 795 162 359

Other financial liabilities G 30 579 22 177 18 620

Trade payables G 27 015 16 611 16 028

Current income tax liabilities 6 468 - 24 445

Other liabilities 4 545 105 553 4 059

Deferred income 13 509 9 957 23 042

Provision for retirement and similar benefits 5 5 5

Other provisions B 50 298 32 492 76 160

TOTAL LIABILITIES AND EQUITY 2 126 592 2 087 276 2 061 164

* Detailed information on changes in items are presented in the relevant notes to the interim condensed consolidated financial

statements.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed separate statement of changes in equity

Share capital

Supplementary

capital

Share premium Other reserves Retained earnings

Net profit (loss) for

the period

Total equity

01.01.2022 – 30.09.2022

Equity

as at 01.01.2022

100 739 1 366 952 115 909 49 515 235 934 - 1 869 049

Costs of the incentive

plan

- - - 3 285 - - 3 285

Appropriation of the net

profit/offset of loss

- 135 195 - - (135 195) - -

Payment of dividend - - - - (100 739) - (100 739)

Total comprehensive

income

- - - (14 289) - 208 733 194 444

Equity

as at 30.09.2022

100 739 1 502 147 115 909 38 511 - 208 733 1 966 039

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Share capital

Supplementary

capital

Share premium Other reserves Retained earnings

Net profit (loss) for

the period

Total equity

01.01.2021 – 30.09.2021

Equity

as at 01.01.2021

100 655 737 542 113 844 47 068 1 132 235 - 2 131 344

Corrections of errors - - - - (4 179) - (4 179)

Equity, as adjusted 100 655 737 542 113 844 47 068 1 128 056 - 2 127 165

Costs of the incentive

plan

- - - 26 820 - - 26 820

Appropriation of the net

profit/offset of loss

- 628 541 - - (628 541) - -

Share-based payments 84 869 2 065 (869) - - 2 149

Payment of dividend - - - - (503 694) - (503 694)

Total comprehensive

income

- - - 3 571 - 132 052 135 623

Equity

as at 30.09.2021

100 739 1 366 952 115 909 76 590 (4 179) 132 052 1 788 063

The Company adjusted the calculation of the deferred tax asset as at 31 December 2020 by re-classifying a part of deductible temporary differences from the category of taxed at 19% to taxed at 5%.

As a result of the adjustment, equity decreased by PLN 4,179 thousand.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed separate statement of cash flows

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

OPERATING ACTIVITIES

Net profit/(loss) 96 873 208 733 21 687 132 052

Total adjustments: (20 126) 16 816 72 617 899 472

Depreciation and amortization of property, plant and

equipment, intangible assets, expenditure on

development projects and investment properties

2 650 8 150 3 092 9 588

Amortization of development projects recognized as

cost of goods sold

48 327 84 464 21 521 65 205

Foreign exchange gains/(losses) (19 888) (24 747) (9 729) (11 787)

Interest and participation in profits (8 663) (25 629) (43) 245

(Gains)/Losses on investing activities 14 299 18 182 9 461 14 032

Increase/(Decrease) in provisions 15 602 (34 126) (49 399) (276 146)

(Increase)/Decrease in inventories (60) 2 732 73 (9 887)

(Increase)/Decrease in receivables (87 792) (14 747) 88 651 1 148 644

Increase/(Decrease) in liabilities, excluding loans and

borrowings

11 849 10 526 982 (57 601)

Change in other assets and liabilities 1 718 (14 863) (1 293) (10 137)

Other adjustments 1 832 6 874 9 301 27 316

Cash from operating activities 76 747 225 549 94 304 1 031 524

Income tax expense 6 310 21 112 1 720 13 233

Withholding tax paid abroad 6 720 31 353 (317) (314)

Income tax (paid)/refunded - (34 188) (6 456) (6 806)

Net cash from operating activities 89 777 243 826 89 251 1 037 637

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021*

INVESTING ACTIVITIES

Inflows 91 538 553 707 808 241 867

Sale of intangible assets and property, plant and

equipment

256 262 54 829

Expenditure on development projects provided as

part of a consortium

- - 152 152

Repayment of loans granted - 13 220 93 1 105

Sale of shares in a subsidiary - 76 19 19

Expiry of bank deposits over 3 months - 265 000 - 164 368

Redemption of bonds 84 853 257 943 - 66 628

Interest on bonds 1 147 3 250 445 725

Interest received on deposits 5 282 13 679 - 41

Inflows from execution of forward contracts - - - 7 887

Other inflows from investing activities - 277 45 113

Outflows 546 554 879 370 63 654 573 997

Acquisition of intangible assets and property, plant

and equipment

10 206 35 371 5 554 23 741

Expenditure on development projects 55 831 145 542 26 506 135 443

Acquisition of investment properties and capitalization

of expenditure

- 145 617 2 022

Loans granted - 4 000 600 4 340

Acquisition of a subsidiary - - 7 679 7 679

Contribution to the capital of a subsidiary 2 808 32 720 - -

Purchase of bonds and cost of their purchase 57 380 225 500 22 623 350 699

Outflows from execution of forward contracts 9 785 25 548 75 -

Placement of bank deposits over 3 months 410 544 410 544 - 50 073

Net cash from investing activities (455 016) (325 663) (62 846) (332 130)

FINANCING ACTIVITIES

Inflows 10 30 10 2 179

Net proceeds from the sale of shares and issue of

shares in the execution of the incentive plan

- - - 2 149

Payment of finance lease liabilities 10 30 10 30

Outflows 101 367 103 014 788 506 088

Dividends and other distributions to shareholders 100 739 100 739 - 503 694

Payment of lease liabilities 499 1 901 704 2 009

Interest paid 129 374 84 385

Net cash from financing activities (101 357) (102 984) (778) (503 909)

Net increase/(decrease) in cash and cash equivalents (466 596) (184 821) 25 627 201 598

Change in cash and cash equivalents in the balance

sheet

(466 596) (184 821) 25 627 201 598

Cash and cash equivalents at the beginning of the

period

627 570 345 795 598 885 422 914

Cash and cash equivalents at the end of the period 160 974 160 974 624 512 624 512

restated data

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Explanations to the condensed separate statement of cash flows

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

“Other adjustment” comprise: 1 832 6 874 9 301 27 316

Costs of the incentive plan 963 3 112 8 458 25 017

Amortization and depreciation written off, reported

under cost of sales, consortium settlements and other

operating expenses

- 1 046 861 2 317

Amortization and depreciation reported under cost of

sales, consortium settlements and other operating

expenses

869 2 716 - -

Other adjustments - - (18) (18)

Comparability of the financial statements and

consistency of accounting policies

The accounting policies applied in these interim condensed separate financial statements, material judgments made by the

Management Board with regard to the accounting policies applied by the Company and the main sources of estimating uncertainties

are consistent, in all material respects, with the policy adopted for preparing the annual financial statements of CD PROJEKT S.A.

for 2021, with the exception of changes in the accounting policies and presentation changes described below. These condensed

financial statements should be read in conjunction with the financial statements for the year ended 31 December 2021.

Changes in accounting policies

Changes in accounting policies relating to the Company are the same as those described in the section Comparability of the

financial statements and consistency of accounting policies of the consolidated financial statements for the period from 1 July to

30 September 2022.

Presentation changes

In these interim condensed separate financial statements for the period from 1 July to 30 September 2022 changes were introduced

in the presentation of selected financial data. In order to ensure comparability of the financial data in the reporting period,

presentation of the data as at 30 September 2021 and as at 31 December 2021 was changed. The data is presented after the

following changes:

 In the statement of financial position as at 31 December 2021, presentation of some of the land held by the Group changed.

Consequently, the following items changed:

- Property, plant and equipment – an increase of PLN 4,354 thousand

- Investment properties – a decrease of PLN 4,354 thousand.

The change did not affect the net profit or loss and equity.

 In the cash flow statement for the period from 1 January 2021 to 30 September 2021, presentation of interest received on

deposits was changed. Consequently, the following items changed:

- Other inflows from investing activities – a decrease of PLN 41 thousand

- Interest on deposits – an increase of PLN 41 thousand.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Notes to the separate financial statements of

CD PROJEKT S.A.

A. Deferred tax

Deductible temporary differences underlying the deferred tax asset

31.12.2021

Differences affecting

the deferred tax

recognized in the

profit or loss

30.09.2022

Provision for other employee benefits 372 - 372

Provision for costs of performance-related and

other remuneration

39 400 (10 001) 29 399

Foreign exchange losses 2 286 (268) 2 018

Difference between the carrying and tax

amount of expenditure on development

projects

24 792 (22 640) 2 152

Salaries and wages and social security payable

in future periods

61 (18) 43

Other provisions 47 501 (24 278) 23 223

Research and development relief 301 954 - 301 954

Prepayments recognized as revenue for tax

purposes

1 469 4 284 5 753

Total deductible differences, including: 417 835 (52 921) 364 914

taxed at 5% 60 417 (22 929) 37 488

taxed at 19% 357 418 (29 992) 327 426

Deferred income tax asset 70 931 (6 845) 64 086

Taxable temporary differences underlying the deferred tax provision

31.12.2021

Differences affecting

the deferred tax

recognized in the

profit or loss

30.09.2022

Difference between the net carrying amount

and tax amount of property, plant and

equipment and intangible assets

14 129 1 170 15 299

Current period revenue invoiced in the

subsequent period/accrued income

128 789 8 638 137 427

Foreign exchange gains 14 786 (13 619) 1 167

Difference between the carrying and tax

amount of expenditure on development

projects

271 672 (44 488) 227 184

Other 91 58 149

Total taxable differences, including: 429 467 (48 241) 381 226

taxed at 5% 386 323 (51 591) 334 732

taxed at 19% 43 144 3 350 46 494

Deferred tax provision 27 513 (1 943) 25 571

The deferred part of the income tax was determined either at the corporate income tax rate of 19% for the tax base corresponding

to income from other sources, or at the rate of 5% for the tax base corresponding to income from qualifying intellectual property

(the so-called IP BOX). When determining the appropriate tax rate for temporary differences, the Company relied on forecasts of

which tax base will give rise to the realization of the temporary differences recognized.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Net deferred tax asset/provision

30.09.2022 30.06.2022 31.12.2021

Deferred income tax assets 64 086 65 999 70 931

Deferred tax provision 25 571 29 228 27 513

Net deferred tax - assets/(provisions) 38 515 36 771 43 418

Income tax expense recognized in the income statement

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

Current income tax, including: 14 775 47 563 6 654 60 119

withholding tax paid abroad 6 720 31 353 (317) (314)

Change in deferred tax (1 745) 4 902 (5 251) (47 200)

Income tax expense recognized in the income statement 13 030 52 465 1 403 12 919

B. Other provisions

30.09.2022 30.06.2022 31.12.2021

Provision for liabilities, including: 54 768 32 983 81 528

provision for costs of the audit and review of the financial

statements

68 69 102

provision for costs of performance-related and other remuneration 41 131 22 066 44 714

provision for other costs 13 569 10 848 36 712

Total, including: 54 768 32 983 81 528

current 50 298 32 492 76 160

non-current 4 470 491 5 368

Change in other provisions

Provision for costs of

performance-related

and other

remuneration

Other provisions Total

As at 01.01.2022 44 714 36 814 81 528

Provisions recorded during the year 41 131 28 143 69 274

Provisions utilized 44 506 51 185 95 691

Provision released 208 135 343

As at 30.09.2022, including: 41 131 13 637 54 768

current 41 131 9 167 50 298

non-current - 4 470 4 470

C. Goodwill

During the period from 1 July to 30 September 2022 there were no changes in goodwill.

D. Business combinations

In the period from 1 July to 30 September 2022, the Company had no business combinations with another entity.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

E. Dividend paid (or declared) and received

On 28 June 2022, the Annual General Meeting of Shareholders of CD PROJEKT S.A. made a decision to allocate a part of the profit

earned by the Parent Company in 2021 for distribution among the shareholders in the form of dividend. In accordance with the

resolution, on 12 July 2022 the Parent Company paid out a total of PLN 100 739 thousand, i.e. PLN 1 per share. 100 738 800 shares

of the Parent Company carried the right to a dividend.

F. Trade and other receivables

30.09.2022 30.06.2022 31.12.2021

Trade and other receivables, gross 195 032 113 676 238 168

Write-downs 828 819 811

Trade and other receivables 194 204 112 857 237 357

from related entities 5 178 4 088 5 179

from other entities 189 026 108 769 232 178

Changes in write-downs of receivables

Trade

receivables

Other

receivables

Total

OTHER ENTITIES

Write-downs as at 01.01.2022 79 732 811

Increases, including: 17 - 17

write-downs recognized for past-due and disputed receivables 17 - 17

Decreases - - -

Write-downs as at 30.09.2022 96 732 828

Current and overdue trade receivables as at 30.09.2022

Total Not overdue

Overdue, in days

1 – 60 61 – 90 91 – 180 181 – 360 >360

RELATED ENTITIES

gross receivables 5 178 3 135 885 14 - 1,144 -

default ratio - 0% 0% 0% 0% 0% 0%

write-down resulting

from the ratio

- - - - - - -

write-down

determined

individually

- - - - - - -

total expected credit

losses

- - - - - - -

Net receivables 5 178 3 135 885 14 - 1 144 -

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Total Not overdue

Overdue, in days

1 – 60 61 – 90 91 – 180 181 – 360 >360

OTHER ENTITIES

gross receivables 142 250 141 980 159 - 11 3 97

default ratio - 0% 0% 0% 0% 0% 0%

write-down resulting

from the ratio

- - - - - - -

write-down

determined

individually

96 - - - - - 96

total expected credit

losses

96 - - - - - 96

Net receivables 142 154 141 980 159 - 11 3 1

Total

gross receivables 147 428 145 115 1 044 14 11 1 147 97

impairment write-

downs

96 - - - - - 96

Net receivables 147 332 145 115 1 044 14 11 1 147 1

Other receivables

30.09.2022 30.06.2022 31.12.2021*

Other gross receivables, including: 47 604 50 195 114 268

tax receivables, other than corporate income tax 35 077 38 182 75 562

prepayments for inventories 7 043 6 842 5 076

prepayments for development projects 3 860 3 649 30 435

security deposits 678 660 650

prepayments for property, plant and equipment and intangible

assets

141 75 34

settlements with employees 12 7 3

settlements with members of the Management Boards 1 7 7

consortium settlements - - 1 659

prepayments on investment properties - - 79

other 792 773 763

Write-downs 732 732 732

Other receivables, including: 46 872 49 463 113 536

current 46 475 49 081 113 163

non-current 397 382 373

* restated data

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

G. Information on financial instruments

Fair values and hierarchy of specific classes of financial instruments

The Management Boards of the Company analysed specific classes of financial instruments. Based on the analysis, it was concluded

that the carrying amounts of the instruments do not materially differ from their fair values, as at both 30 September 2022, 30 June

2022 and 31 December 2021.

30.09.2022 30.06.2022 31.12.2021*

LEVEL 1

Assets measured at fair value

Assets measured at fair value through

other comprehensive income

269 169 249 800 228 661

bonds issued by foreign governments – EUR 26 164 25 318 24 517

bonds issued by foreign governments – USD 243 005 224 482 204 144

LEVEL 2

Liabilities measured at fair value through profit or loss

Derivatives 28 701 20 496 17 906

currency forwards – EUR 472 100 455

currency forwards – USD 28 229 20 396 17 451

* restated data

Financial Instruments measured at fair value are classified to 3-stage fair value hierarchy:

Level 1 – quoted prices in active markets for identical assets or liabilities.

Level 2 – fair value based in observable market data.

Level 3 – fair value based on market data that is not observable in the market.

Financial assets – classification and measurement

30.09.2022 30.06.2022 31.12.2021

Financial assets measured at amortized cost 936 567 934 707 993 036

Other non-current receivables 397 382 373

Trade receivables 147 332 63 394 123 821

Cash and cash equivalents 160 974 627 570 345 795

Bank deposits over 3 months 410 544 - 265 000

Treasury bonds and bonds guaranteed by the State Treasury 217 320 243 361 248 755

Loans granted - - 9 292

Assets measured at fair value through

other comprehensive income

269 169 249 800 228 661

Bonds issued by foreign governments 269 169 249 800 228 661

Total financial assets 1 205 736 1 184 507 1 221 697

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Financial liabilities – classification and measurement

30.09.2022 30.06.2022 31.12.2021*

Financial liabilities measured at amortized cost 45 382 35 182 31 499

Trade payables 27 015 16 611 16 028

Other financial liabilities 18 367 18 571 15 471

Financial liabilities measured at fair value

through profit or loss

28 701 20 496 17 906

Derivative financial instruments 28 701 20 496 17 906

Total financial liabilities 74 083 55 678 49 405

* restated data

In accordance with the requirements of IFRS 9 Financial Instruments, the Company analysed the business model for managing

financial assets and examined the characteristics of contractual cash flows for each component of the bond portfolio, and concluded

that:

 the purpose of investments in domestic and foreign Treasury bonds and domestic bonds guaranteed by the Polish State

Treasury is to hold them to maturity and to collect contractual cash flows;

 investment mandates for managing the foreign bonds portfolio allow selling bonds before maturity as part of the adopted

strategy;

 all bonds purchased meet the SPPI test.

As a result of the analysis conducted, purchased bonds were classified into two financial asset management models which differ in

terms of the entity managing the bond portfolio. Polish Treasury bonds and bonds guaranteed by the Polish State Treasury are

measured at amortized cost, because they are held to collect contractual cash flows. Foreign Treasury bonds are measured at fair

value through other comprehensive income, because of the investment mandate which allows the possibility of the portfolio being

managed by an Asset Manager.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

H. Transactions with related entities

Sales to related entities Purchases from related entities

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

01.07.2022 –

30.09.2022

01.01.2022 –

30.09.2022

01.07.2021 –

30.09.2021

01.01.2021 –

30.09.2021

SUBSIDIARIES

GOG sp. z o.o. 3 692 10 148 2 073 10 289 731 2 234 293 1 691

CD PROJEKT Inc. 100 271 113 397 3 538 11 762 2 427 9 512

CD PROJEKT Co., Ltd.

(liquidated)

- - - - - - 1 016 4 171

Spokko sp. z o.o. 324 1 061 684 1 031 - - - -

CD PROJEKT RED STORE

sp. z o.o.

268 1 003 155 740 43 113 20 108

CD PROJEKT RED Vancouver

Studio Ltd.

4 33 - - 4 342 12 124 1 648 1 648

The Molasses Flood LLC 2 2 - - 9 737 20 048 - -

MANAGEMENT BOARD

Marcin Iwiński - 1 2 18 - - - -

Adam Kiciński - - - 4 - - - -

Piotr Nielubowicz - 1 1 5 - - - -

Michał Nowakowski 2 3 1 11 - - - -

Adam Badowski 1 6 - 1 - - - -

Piotr Karwowski - - - 1 - - - -

Paweł Zawodny - 7 - - - - - -

Jeremiah Cohn - 1 - - - - - -

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Receivables from related entities Liabilities to related entities

30.09.2022 30.06.2022 31.12.2021 30.09.2022 30.06.2022 31.12.2021

SUBSIDIARIES

GOG sp. z o.o. 2 885 1 977 3 411 665 545 232

CD PROJEKT Inc. 100 108 511 1 221 1 267 948

Spokko sp. z o.o. 238 445 9 113 - - -

CD PROJEKT RED STORE sp. z o.o. 810 449 421 3 73 158

CD PROJEKT RED Vancouver

Studio Ltd.

1 144 1 102 1 008 465 419 164

The Molasses Flood LLC - - - 2 530 995 1 018

MANAGEMENT BOARD

Marcin Iwiński - - - - - 20

Adam Kiciński - - - - - 5

Michał Nowakowski - - - 1 - 7

Adam Badowski 1 1 7 - - 5

Paweł Zawodny - 6 - - - -

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Statement of the Management Board of the Parent

Company

On the fairness of preparation of the interim condensed consolidated financial statements

In accordance with the requirements of the Regulation of the Minister of Finance of 29 March 2018 on current and periodical

information submitted by issuers of securities and conditions for considering as equivalent the information required under the

legislation of a non-Member State, the Management Board of the Parent Company declares that, to the best of its knowledge, these

interim condensed consolidated financial statements and comparative data has been prepared in accordance with the accounting

policies applicable in the CD PROJEKT Group and that they reflect in a true, fair and clear manner the Group’s financial position and

its results of operations.

These interim condensed consolidated financial statements have been prepared in accordance with the International Financial

Reporting Standards (IFRS) endorsed by the European Union published and effective as at 1 January 2022, and to the extent not

governed by the said standards, in accordance with the Accounting Act of 29 September 1994 and the implementing legislation

issued on the basis thereof and to the extent required by Regulation of the Minister of Finance of 29 March 2018 on current and

periodical information submitted by issuers of securities and conditions for considering as equivalent the information required under

the legislation of a non-Member State.

The entity authorized to review the fairness of preparation of interim condensed consolidated

financial statements

On 9 March 2022, the Supervisory Board of the Parent Company selected Grant Thornton Polska spółka z ograniczoną

odpowiedzialnością spółka komandytowa with its registered office in Poznań, as recommended by the Audit Committee, as auditor

to carry out the review of semi-annual and the audit of the annual financial statements of the Company and its Group for 2022 and

2023. Grant Thornton Polska spółka z ograniczoną odpowiedzialnością spółka komandytowa has been entered on the list of

entities authorized to audit financial statements by the National Chamber of Statutory Auditors with the number 4055.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2022

(all amounts are in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Approval of the financial statements

This report for the period from 1 July to 30 September 2022 has been signed and approved for publication by the Management

Board of CD PROJEKT S.A. on 28 November 2022.

Warsaw, 28 November 2022

Adam Kiciński Marcin Iwiński Piotr Nielubowicz

President of the Management Board Vice-President of the Management Board Vice-President of the Management Board

Adam Badowski Michał Nowakowski Piotr Karwowski

Member of the Management Board Member of the Management Board Member of the Management Board

Paweł Zawodny Jeremiah Cohn Krystyna Cybulska

Member of the Management Board Member of the Management Board Chief Accountant