Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes 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 2023

(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

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

Net sales of products, services, goods for resale

and materials

767 692 623 507 167 717 133 001

Cost of sales of products, services, goods for resale

and materials

251 356 180 561 54 914 38 516

Operating profit/(loss) 281 152 233 882 61 423 49 890

Profit/(loss) before tax 350 364 264 958 76 544 56 518

Net profit/(loss) attributable to owners of

CD PROJEKT S.A.

289 981 211 861 63 352 45 192

Net cash from operating activities 244 768 212 084 53 474 45 240

Net cash from investing activities (183 968) (321 193) (40 191) (68 514)

Net cash from financing activities (102 395) (103 788) (22 370) (22 139)

Net increase/(decrease) in cash and cash equivalents (41 595) (212 897) (9 087) (45 413)

Number of shares (in thousands) 100 388 100 739 100 388 100 739

Net earnings/(loss) per share (in PLN) 2.89 2.11 0.63 0.45

Diluted earnings/(loss) per share (in PLN/EUR) 2.89 2.11 0.63 0.45

Book value per share (in PLN/EUR) 22.00 19.82 4.75 4.07

Diluted book value per share

(in PLN/EUR)

21.99 19.81 4.74 4.07

Dividend declared or paid per share (in PLN/EUR) 1.00 1.00 0.22 0.21

* restated data

PLN EUR

30.09.2023 31.12.2022* 30.09.2023 31.12.2022*

Total assets 2 412 731 2 276 331 520 479 485 369

Liabilities and provisions for liabilities

(excluding accruals)

189 411 218 771 40 860 46 647

Non-current liabilities 40 252 36 186 8 683 7 716

Current liabilities 164 335 208 679 35 451 44 495

Equity 2 208 144 2 031 466 476 345 433 158

Share capital 99 911 100 771 21 553 21 487

* restated data

The financial data presented above were translated to 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 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 2023: 4.5773 PLN/EUR and from 1 January to 30 September 2022: 4.688 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: 4.6356 PLN/EUR as at 30 September 2023 and 4.6899 PLN/EUR as at 31 December 2022.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(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 .......................................................................................................................................................................................................... 6

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 ..................................................................................................................... 13

Interim condensed consolidated statement of cash flows ................................................................................................................................... 15

Notes to the interim condensed consolidated financial statements ........................................................................................................................ 18

General Information ......................................................................................................................................................................................................... 19

Presentation of the Group .............................................................................................................................................................................................. 19

Consolidation policies .................................................................................................................................................................................................... 20

Consolidated companies – as at 30 September 2023 .................................................................................................................................. 20

Subsidiaries ................................................................................................................................................................................................................. 20

Basis of preparation of the interim condensed consolidated financial statements ..................................................................................... 21

Going concern assumption ............................................................................................................................................................................................ 21

Compliance with the International Financial Reporting Standards.................................................................................................................... 21

Amendments to standards or interpretations effective from 1 January 2023, applicable and adopted by the Group ............... 21

Functional currency and presentation currency ..................................................................................................................................................... 22

Functional currency and presentation currency .............................................................................................................................................. 22

Transactions and balances ..................................................................................................................................................................................... 22

Assumption of comparability of the financial statements and changes in accounting policies .............................................................. 23

Presentation changes and correction of errors ................................................................................................................................................ 23

Audit by the registered auditor .................................................................................................................................................................................... 24

Notes – operating segments of the CD PROJEKT Group ......................................................................................................................................... 25

Operating segments ....................................................................................................................................................................................................... 26

Information on individual operating segments ................................................................................................................................................. 27

Consolidated income statement by segment for the period from 01.07.2023 to 30.09.2023 ......................................................... 28

Consolidated income statement by segment for the period from 01.07.2022 to 30.09.2022* ........................................................ 29

Consolidated income statement by segment for the period from 01.01.2023 to 30.09.2023 .......................................................... 30

Consolidated income statement by segment for the period from 01.01.2022 to 30.09.2022*.......................................................... 31

Consolidated statement of financial position by segment as at 30.09.2023 ......................................................................................... 32

Consolidated statement of financial position by segment as at 30.06.2023* ........................................................................................ 34

Consolidated statement of financial position by segment as at 31.12.2022* .......................................................................................... 36

Description of the Issuer’s major achievements or failures in the third quarter of 2023 by operating segment ........................ 39

Factors affecting the Group’s future performance ........................................................................................................................................... 41

Impact of the political and economic situation in Ukraine on sales during the reporting period ..................................................... 42

Impact on sales ........................................................................................................................................................................................................... 42

Risks associated with the current political and economic situation in Ukraine ...................................................................................... 42

Seasonality or cyclicality of the Group’s operations ....................................................................................................................................... 43

Key customers ............................................................................................................................................................................................................ 44

Notes – other explanatory notes to the interim condensed consolidated financial statements .................................................................... 45

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

are unusual in terms of their type, size and impact ......................................................................................................................................... 46

Note 2. Property, plant and equipment................................................................................................................................................................ 47

Note 3. Intangible assets and expenditure on development projects ...................................................................................................... 49

Note 4. Goodwill ......................................................................................................................................................................................................... 50

Note 5. Investment properties ............................................................................................................................................................................... 50

Note 6. Inventories .................................................................................................................................................................................................... 52

Note 7. Trade and other receivables ................................................................................................................................................................... 52

Note 8. Other financial assets ................................................................................................................................................................................ 54

Note 9. Prepayments and deferred costs .......................................................................................................................................................... 55

Note 10. Deferred income tax ................................................................................................................................................................................ 56

Note 11. Share capital ................................................................................................................................................................................................ 58

Note 12. Provision for retirement and similar benefits .................................................................................................................................... 58

Note 13. Other provisions ........................................................................................................................................................................................ 59

Note 14. Other liabilities ........................................................................................................................................................................................... 59

Note 15. Deferred income ....................................................................................................................................................................................... 60

Note 16. Information on financial instruments ................................................................................................................................................... 60

Note 17. Sales revenue ............................................................................................................................................................................................. 62

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 18. Operating expenses................................................................................................................................................................................. 64

Note 19. Other operating income and expenses ............................................................................................................................................. 65

Note 20. Finance income and costs .................................................................................................................................................................... 66

Note 21. Leases of low-value assets and short-term leases ......................................................................................................................... 66

Note 22. Issuance, redemption and repayment of debt and equity securities ...................................................................................... 67

Note 23. Dividend paid (or declared) and received ........................................................................................................................................ 67

Note 24. Transactions with related entities ....................................................................................................................................................... 67

Note 25. Unpaid loans or defaults on loan agreements in the cases where no corrective measures were adopted by the

balance sheet date .................................................................................................................................................................................................... 70

Note 26. Changes in contingent liabilities or contingent assets which occurred after the end of the last financial year .......... 71

Note 27. Changes in the structure of the Group and Group companies during the reporting period ............................................. 73

Note 28. Agreements that may result in future changes in the proportions of shares held by shareholders

and bondholders ......................................................................................................................................................................................................... 73

Note 29. Tax settlements ........................................................................................................................................................................................ 75

Note 30. Explanations to the condensed consolidated statement of cash flows .................................................................................. 76

Note 31. Cash flows and non-monetary changes resulting from changes in liabilities in financing activities ............................... 79

Note 32. Post balance sheet events ..................................................................................................................................................................... 81

Additional information ...........................................................................................................................................................................................................82

Litigation pending ...................................................................................................................................................................................................... 83

Shareholding structure ................................................................................................................................................................................................... 84

Parent Company’s shares held by the members of the Management Board and the Supervisory Board .................................... 85

Reference to published estimates .............................................................................................................................................................................. 85

Interim condensed separate financial statements of CD PROJEKT S.A. ...............................................................................................................86

Interim condensed separate income statement ......................................................................................................................................................87

Interim condensed separate statement of comprehensive income ................................................................................................................ 88

Interim condensed separate statement of financial position ............................................................................................................................. 88

Interim condensed separate statement of changes in equity ............................................................................................................................ 90

Interim condensed separate statement of cash flows.......................................................................................................................................... 92

Assumption of comparability of the financial statements and changes in accounting policies .............................................................. 94

Changes in accounting policies ............................................................................................................................................................................ 94

Presentation changes and correction of errors ................................................................................................................................................ 94

Notes to the separate financial statements of CD PROJEKT S.A. .................................................................................................................... 96

A. Deferred tax....................................................................................................................................................................................................... 96

B. Other provisions ............................................................................................................................................................................................... 97

C. Goodwill .............................................................................................................................................................................................................. 97

D. Business combinations .................................................................................................................................................................................. 98

E. Dividend paid (or declared) and received ...............................................................................................................................................102

F. Trade and other receivables........................................................................................................................................................................102

G. Information on financial instruments ........................................................................................................................................................ 104

H. Transactions with related entities.............................................................................................................................................................. 107

Statement by the Management Board of the Parent Company .......................................................................................................................109

Approval of the financial statements ......................................................................................................................................................................... 110

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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Interim condensed consolidated income statement

Note

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

Sales revenue 442 682 245 514 767 692 623 507

Sales of products 17 390 534 203 189 628 634 489 057

Sales of services 17 455 308 1 041 1 622

Sales of goods for resale and materials 17 51 693 42 017 138 017 132 828

Cost of sales of products, services, goods for

resale and materials

143 167 79 200 251 356 180 561

Costs of products and services sold 18 104 410 48 602 148 101 85 640

Cost of goods for resale and materials sold 18 38 757 30 598 103 255 94 921

Gross profit/(loss) on sales 299 515 166 314 516 336 442 946

Selling expenses 18 66 140 45 064 152 470 135 697

Administrative expenses 18 51 300 26 973 111 904 73 862

Other operating income 19 7 412 9 819 40 747 15 204

Other operating expenses 19 3 243 6 783 11 556 14 692

(Impairment)/reversal of impairment

of financial instruments

(5) (9) (1) (17)

Operating profit/(loss) 186 239 97 304 281 152 233 882

Finance income 20 60 424 33 219 80 005 68 589

Finance costs 20 12 994 18 276 10 793 37 513

Profit/(loss) before tax 233 669 112 247 350 364 264 958

Income tax 10 30 805 13 358 60 383 53 097

Net profit/(loss) 202 864 98 889 289 981 211 861

Net profit/(loss) attributable to owners of

CD PROJEKT S.A.

202 864 98 889 289 981 211 861

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

Basic for the reporting period 2.03 0.98 2.89 2.11

Diluted for the reporting period 2.03 0.98 2.89 2.11

* restated data

A significant increase, in terms of value, compared with the prior period in Sales revenue in the third quarter of 2023 is the result

of a successful launch of Phantom Liberty, the feature expansion of Cyberpunk 2077. The launch, supported by a marketing and

communication campaign, took place on 26 September and in the period discussed, the Group recognized in revenues the total

value of sales under pre-orders received until the date of the launch and sales in the first days after the launch. This translated into

an increase in Sales of products in the CD PROJEKT RED segment, where sales of the expansion represented more than a half of

the total sales of products, and almost 90% including sales of the main game. In addition, in the item discussed, the

CD PROJEKT RED segment recognized:

a) licence revenue from the sale of the game Witcher 3: Wild Hunt, including expansions: Hearts of Stone and Blood and Wine;

b) revenue relating to the games GWENT: The Witcher Card Game, Witcher 2: Assassins of Kings, Thronebreaker: The Witcher

Tales and The Witcher;

c) licence revenue relating to the CD PROJEKT RED studio’s franchises.

In the period discussed, the Group recorded an increase in sales also in Sales of goods for resale and materials, which comprised

mainly revenue from digital distribution of games from external suppliers to end customers executed via the GOG.COM platform.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

The Cost of products and services sold, where the cost of amortization of expenditure on development projects (primarily the cost

of own games developed in the CD PROJEKT RED segment) is presented, is the first component of the Group’s Cost of sales of

products, services, goods for resale and materials. The value of the said item in the third quarter of 2023 comprised mainly the

amortization of expenditure on the Cyberpunk 2077, including its expansion Phantom Liberty. In connection with the launch of the

expansion, the Company assessed the useful economic life and estimated expected benefits from assets associated with the

Cyberpunk 2077 game and, based on the analysis performed, it was decided that:

 starting from the third quarter of 2023, expenditure on the Cyberpunk 2077 asset, including expenditure on the

production of the version of the game dedicated to new generation consoles and expenditure on development projects

relating to the Phantom Liberty expansion will be amortized according to the same pattern;

 assets will be amortized until the end of 2028;

 the reducing balance method of amortization will be used, with the following pattern of amortization:

- 20% in the third quarter of 2023;

- 20% in the fourth quarter of 2023;

- 5% in each quarter of 2024;

- 3.5% in each quarter of 2025;

- 2.5% in each quarter of 2026;

- 2% in each quarter of 2027 and 2028,

with the amortization rates specified above being applied to the balance of assets relating to the Cyberpunk 2077 game

and its editions for new generation consoles Xbox Series X|S and PlayStation 5 as at the end of June 2023 and to the

initial value of the asset relating to Phantom Liberty.

An additional increase in the said item in the third quarter of 2023 was attributable to an increase in the provision for liabilities

relating to settlements with distributors of the sales and costs of the physical copies of the Cyberpunk 2077 game totalling

PLN 13 041 thousand resulting from updating estimates.

Cost of goods for resale and materials sold represents mainly the cost of goods for resale and materials sold via the GOG.COM

platform and the cost of physical products sold by the CD PROJEKT RED segment.

In the third quarter of 2023, the largest component of the Selling expenses comprised costs relating to the publishing activities,

current advertising and promotion of own titles, including salaries and wages of the internal publishing department teams and

external sales promotion services. The increase in these costs compared with the prior period resulted mainly from the Phantom

Liberty promotional campaign conducted by the segment.

The second largest category of the Selling expenses comprised costs recognized in the GOG.COM segment in respect of marketing

activities relating to the GOG.COM platform and the work on the development and processing of sales executed through that

platform.

The third major category of the selling expenses in the period discussed included the cost of maintenance of the titles published

in the CD PROJEKT RED segment. Compared with the third quarter of 2022, the value of maintenance costs was reduced, mainly

due to a significant decrease in the costs relating to the work on Cyberpunk 2077 updates.

Administrative expenses of the CD PROJEKT Group comprise mainly:

a) the fixed and performance-related parts of the remuneration of the Management Boards and top management of the

companies where there was an increase in relation to the comparative period resulting mainly from an increase in the provision

for performance-related remuneration;

b) remuneration of the administrative teams and costs of external services classified in this category, which are consistently on

the rise in line with the Group’s development;

c) costs of work on the future games incurred at an initial stage (research phase) preceding the execution of the projects

(development phase) and the start of their capitalization as part of Expenditure on development projects forming part of Non-

current assets, where there was an increase due to expansion of the teams working on the projects at the research stage;

d) the cost of valuation of the entitlements awarded under the incentive scheme for the years 2020–2025.

Items with the most significant impact on the balance of the Group’s Other operating income and expenses included recognition

of the tax relief for innovative employees, subsidies received, other sales, including costs, and income and costs relating to the

lease of office space in the property complex at Jagiellońska 74 and 76 in Warsaw.

In the period discussed, the Group reported an excess of Finance income over Finance costs. The excess was mainly due to the

reversal of a write-down of shares in the acquired company recognized in 2022 in connection with the merger of Spokko sp. z o.o.

with CD PROJEKT S.A., the excess of foreign exchange gains over foreign exchange losses and the settlement and valuation of

derivative financial instruments hedging foreign exchange risk, and interest on bank deposits and bonds.

The release of the previously recognized write-down of shares in Spokko sp. z o.o. due to its takeover (merger with the Parent

Company) discussed above was accompanied, at the same time, by the recognition of income and costs for the current year of the

acquired company in the income statement of the Parent Company for the third quarter of 2023 and the recognition of the past

results of the acquired company in Equity of the Parent Company under Retained earnings.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

The effective income tax rate recognized in the income statement for the third quarter of the current year was 13.2% compared to

11.9% in the third quarter of 2022, and the increase is mainly due to a change in the approach to recognition of non-deductible

income tax collected in other jurisdictions on royalties paid to the Group (withholding tax), which involves its ongoing recognition

on the basis of reliable estimates. This is a change from the previous approach under which the recognition of non-deductible

withholding tax only occurred upon receiving documents confirming the settlement of the tax abroad, i.e. in the year following the

year of the actual withholding by the Company’s royalty payer.

In addition, the increase in Income tax was affected by an increased deferred tax provision resulting mainly from the recognition of

expenditure on the Phantom Liberty expansion and the increased balance of current period revenue invoiced in the following

period compared to the third quarter of 2022, which is also due in large part to the release of the Cyberpunk 2077 Phantom Liberty

expansion.

The consolidated Net profit of the Group for the third quarter of 2023 amounted to PLN 202 864 thousand and was significantly

higher than in the corresponding period of the prior year, mainly as a result of the successful launch of the Phantom Liberty

expansion.

Interim condensed consolidated statement of

comprehensive income

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

Net profit/(loss) 202 864 98 889 289 981 211 861

Other comprehensive income subject to reclassification

to gains or losses after specific conditions have been

met:

1 128 (4 402) (231) (10 841)

Exchange differences on measurement of foreign

operations

1 607 1 896 (89) 3 448

Measurement of derivative financial instruments - fair

value through other comprehensive income, taking

into account the tax effect

(479) (6 298) (142) (14 289)

Other comprehensive income not subject to

reclassification to gains or losses

- - - -

Total comprehensive income 203 992 94 487 289 750 201 020

Total comprehensive income attributable to

non-controlling interests

- - - -

Total comprehensive income attributable to owners of

CD PROJEKT S.A.

203 992 94 487 289 750 201 020

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Interim condensed consolidated statement of financial

position

Note 30.09.2023 30.06.2023* 31.12.2022*

NON-CURRENT ASSETS 1 274 924 1 300 586 1 122 185

Property, plant and equipment 2 171 619 161 009 145 252

Intangible assets 3 69 507 69 785 69 157

Expenditure on development projects 3 575 418 600 099 475 169

Investment properties 5 34 612 37 429 42 560

Goodwill 3.4 56 438 56 438 56 438

Shares in non-consolidated subordinated entities 40 863 43 477 41 607

Prepayments and deferred costs 9 48 503 42 727 31 074

Other financial assets 8.16 254 687 242 203 207 437

Deferred tax assets 10 22 897 47 044 53 102

Other receivables 7.16 380 375 389

CURRENT ASSETS 1 137 807 883 921 1 154 146

Inventories 6 7 463 8 118 12 701

Trade receivables 7.16 287 833 83 557 165 290

Current income tax receivable 14 853 12 356 1 458

Other receivables 7 33 747 42 359 57 139

Prepayments and deferred costs 9 26 386 21 494 22 886

Other financial assets 8.16 268 043 249 576 279 515

Bank deposits over 3 months 16 263 250 317 125 337 330

Cash and cash equivalents 16 236 232 149 336 277 827

TOTAL ASSETS 2 412 731 2 184 507 2 276 331

* restated data

The item Expenditure on development projects, in which the Group recognizes expenditure on the development of new games,

new technologies and other products of a similar nature, incurred and deferred, had the largest share in the value of the Group’s

Non-current assets as at the end of the third quarter of 2023, as well as the greatest impact on the decrease in the balance thereof.

The decrease in the said item in the period discussed is due to the commencement of the amortization of the Phantom Liberty

expansion after its launch and increased amortization rates on other assets relating to the main game Cyberpunk 2077.

Moreover, in non-current assets, the Group recorded an increase in the balance of Property, plant and equipment in the period

discussed. The increase was mainly due to expenditure on construction work at the CD PROJEKT campus in Warsaw (assets under

construction).

A decrease in Shares in non-consolidated subordinated entities is mainly due to the final settlement of the merger of Spokko sp.

z o.o. with CD PROJEKT S.A.

Other financial assets, current and non-current, include mainly domestic and foreign Treasury bonds purchased as part of credit

risk diversification.

The consolidated value of the current and non-current Prepayments and deferred costs recognized as at the end of the analysed

period was mainly affected by the amount of the so-called minimum guarantees, i.e. advances and prepayments made by GOG.COM

to its suppliers towards fees for the distribution of games offered on the GOG.COM platform, recognized in the GOG.COM segment.

The Group also recognizes the settlement of subscriptions for utility software under this item.

As at the end of September 2023, the Group’s Other receivables included, in particular, tax receivables and advance payments

made by CD PROJEKT RED in respect of development projects, goods for resale and services.

The consolidated balance of Trade receivables increased compared with 30 June 2023 mainly as a result of a strong increase in

sales associated with the launch of the Phantom Liberty game during the current period, especially in September 2023 when the

premiere took place. This naturally resulted in an increase in the balance of receivables relating to licences in the CD PROJEKT RED

segment as at the balance sheet date.

The total amount of financial reserves in the form of Cash and cash equivalents, Bank deposits over 3 months and liquid financial

assets in the form of purchased Treasury bonds (recognized in total in current and non-current Other financial assets) held by the

Group as at 30 September 2023 amounted to PLN 1 014 652 thousand.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 30.09.2023 30.06.2023* 31.12.2022*

EQUITY 2 208 144 2 030 808 2 031 466

Equity of the shareholders of CD PROJEKT S.A. 2 208 144 2 030 808 2 031 466

Share capital 11.22 99 911 99 911 100 771

Supplementary capital 1 714 604 1 714 604 1 567 325

Share premium 116 700 116 700 116 700

Treasury shares - - (99 993)

Other reserves 15 930 12 984 2 255

Foreign exchange differences on translation 1 815 208 1 904

Retained earnings (30 797) (3 818) (3 987)

Net profit (loss) for the period 289 981 90 219 346 491

Non-controlling interests - - -

NON-CURRENT LIABILITIES 40 252 30 041 36 186

Other financial liabilities 16 19 640 18 206 18 883

Other liabilities 14 2 501 2 500 2 620

Deferred tax provision 10 49 46 50

Deferred income 15 2 069 2 753 3 669

Provision for retirement and similar benefits 12 366 366 366

Other provisions 13 15 627 6 170 10 598

CURRENT LIABILITIES 164 335 123 658 208 679

Other financial liabilities 16 14 239 8 478 9 578

Trade payables 16 67 302 49 870 72 119

Current income tax liabilities 147 - 2 116

Other liabilities 14 13 722 10 760 10 244

Deferred income 15 13 107 25 611 22 425

Provision for retirement and similar benefits 12 7 156 6 909 4 155

Other provisions 13 48 662 22 030 88 042

TOTAL EQUITY AND LIABILITIES 2 412 731 2 184 507 2 276 331

* restated data

As at the end of the third quarter of 2023, the value of Equity of the CD PROJEKT Group amounted to PLN 2 208 144 and was

PLN 177 336 thousand higher compared with 30 June 2023, mainly due to the Net profit for the period generated in the current

period. The largest negative impact on the value of Equity was the recognition of the past profits of the acquired Spokko sp. z o.o.,

which were recognized under Retained earnings.

An increase in current and non-current Other financial liabilities in the period discussed is mainly due to the remeasurement of

instruments hedging the foreign exchange risk related to holding foreign Treasury bonds denominated in foreign currencies. In this

item, the Group also recognizes liabilities in respect of the perpetual usufruct of land at the Jagiellońska 74 and Jagiellońska 76

complexes in Warsaw and liabilities in respect of payment of a part of the purchase price of the shares in The Molasses Flood with

a deferred payment term.

An increase in the balance of the Group’s Trade payables is due to the current operations of the GOG.COM segment and an

increase in payables relating to royalties in respect of sales made in the current period.

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

and social security liabilities.

The balance of the CD PROJEKT Group’s Deferred income as at the end of September 2023 comprises mainly the following:

 GOG.COM – deferred income settlements with the Company’s customers (including the Store credit and Wallet granted);

 CD PROJEKT RED and GOG.COM – deferred income concerning subsidies;

 CD PROJEKT RED – sales relating to future periods – the so-called minimum guarantees, i.e. advances towards royalties related

to sales in future periods, received or receivable from publishers and distribution partners;

 GOG.COM – sales relating to future periods – the value of pre-orders for games with a release date in future periods, placed

by customers.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Compared with the end of June 2023, the balance of the item discussed decreased mainly due to the execution of pre-orders for

the Phantom Liberty expansion, both in the CD PROJEKT RED and GOG.COM segments.

The balance of the current and non-current Provision for retirement and similar benefits includes primarily a holiday pay provision

in the CD PROJEKT RED segment.

The increase in the balance of Other provisions of the CD PROJEKT Group in the third quarter of 2023 concerned mainly the

CD PROJEKT RED segment and was primarily due to the recognition of provisions for performance-related remuneration for the

current period and an increase in the value of the provision for liabilities relating to settlements with sales distributors and the costs

of physical copies of the Cyberpunk 2077 game, resulting from updated estimates.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Interim condensed statement of changes in consolidated equity

capital

Supplementary

capital

premium

Treasury

Other

reserves

Foreign

exchange

differences

on translation

Retained

earnings

Net profit

(loss) for

the period

Equity of the

shareholders of

CD PROJEKT S.A.

Non-

controlling

interests

Total

equity

01.01.2023 – 30.09.2023

Equity

as at 01.01.2023

100 771 1 567 325 116 700 (99 993) 2 255 1 904 344 442 - 2 033 404 - 2 033 404

Corrections of errors - - - - - - (1 938) - (1 938) - (1 938)

Equity, as adjusted 100 771 1 567 325 116 700 (99 993) 2 255 1 904 342 504 - 2 031 466 - 2 031 466

Costs of the

incentive plan

- - - - 13 816 - - - 13 816 - 13 816

Appropriation of the

net profit/offset of

loss

- 246 412 - - - - (246 412) - - - -

Payment of dividend - - - - - - (99 911) - (99 911) - (99 911)

Redemption of

Treasury shares

(860) (99 133) - 99 993 - - - - - - -

Retained earnings of

the acquired entity

- - - - - - (26 978) - (26 978) - (26 978)

Total comprehensive

income

- - - - (141) (89) - 289 981 289 751 - 289 751

Equity

as at 30.09.2023

99 911 1 714 604 116 700 - 15 930 1 815 (30 797) 289 981 2 208 144 - 2 208 144

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

capital

Supplementary

capital

premium

Treasury

Other

reserves

Foreign

exchange

differences

on translation

Retained

earnings

Net profit

(loss) for

the period

Equity of the

shareholders 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

Corrections of errors - - - - - - (1 336) - (1 336) - (1 336)

Equity, as adjusted 100 739 1 425 647 115 909 - 47 994 1 591 201 140 - 1 893 020 - 1 893 020

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 - 211 861 201 020 - 201 020

Equity

as at 30.09.2022

100 739 1 530 035 115 909 - 36 990 5 039 (3 987) 211 861 1 996 586 - 1 996 586

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Interim condensed consolidated statement of cash

flows

Note

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

OPERATING ACTIVITIES

Net profit/(loss) 202 864 98 889 289 981 211 861

Total adjustments: 30 (111 979) (42 358) (85 935) (17 467)

Depreciation and amortization of property,

plant and equipment, intangible assets,

expenditure on development projects and

investment properties

3 271 3 425 9 942 10 771

Amortization of development projects

recognized as cost of goods sold

93 935 48 325 137 148 84 541

Foreign exchange (gains)/losses (14 819) (19 888) 4 024 (24 769)

Interest and shares in profits (10 466) (9 168) (35 831) (26 719)

(Gains)/losses on investing activities (14 501) 13 796 (57 543) 15 282

Increase/(Decrease) in provisions 36 413 13 066 (11 526) (36 231)

(Increase)/Decrease in inventories 655 644 5 238 1 394

(Increase)/Decrease in receivables (205 052) (87 658) (126 129) (15 016)

Increase/(Decrease) in liabilities,

excluding loans and borrowings

17 197 4 762 1 768 12 285

Change in other assets and liabilities (23 916) (11 201) (32 028) (45 874)

Other adjustments 5 304 1 539 19 002 6 869

Cash from operating activities 90 885 56 531 204 046 194 394

Income tax expense 21 150 6 636 34 769 21 741

Withholding tax paid abroad 9 655 6 722 25 614 31 356

Income tax (paid)/refunded 1 649 (454) (19 661) (35 407)

Net cash from operating activities 123 339 69 435 244 768 212 084

restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

INVESTING ACTIVITIES

Inflows 144 830 92 054 565 856 553 821

Sale of intangible assets and property, plant

and equipment

129 260 642 274

Repayment of loans granted 1 002 - 1 002 12 202

Sale of shares in a subsidiary - - - 76

Expiry of bank deposits over 3 months 124 680 - 454 650 265 000

Redemption of bonds - 84 853 56 411 257 943

Interest on bonds 1 637 1 147 8 116 3 250

Interest received on deposits 5 912 5 794 23 249 14 811

Inflows from execution of forward contracts 11 470 - 21 743 -

Other inflows from investing activities - - 43 265

Outflows 180 594 546 181 749 824 875 014

Acquisition of intangible assets and

property, plant and equipment

10 310 10 333 40 004 35 953

Expenditure on development projects 64 831 55 831 227 448 145 542

Expenditure on intangible assets 345 - 724 -

Acquisition of investment properties

and capitalization of expenditure

57 - 155 145

Loans granted - - 4 215 3 400

Purchase of shares in a subsidiary - - 3 488 -

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

Purchase of bonds and cost of their

purchase

34 246 57 380 93 220 225 500

Placement of bank deposits over 3 months 70 805 410 544 380 570 410 544

Outflows from execution of forward

contracts

- 9 785 - 25 548

Other outflows on investing activities - - - 64

Net cash from investing activities (35 764) (454 127) (183 968) (321 193)

FINANCING ACTIVITIES

Inflows 1 10 31 30

Payment of finance lease liabilities 1 10 31 30

Outflows 680 101 658 102 426 103 818

Dividends and other payments to

shareholders

- 100 739 99 911 100 739

Payment of lease liabilities 480 782 1 920 2 675

Interest paid 200 137 595 404

Net cash used in financing activities 31 (679) (101 648) (102 395) (103 788)

Net increase/(decrease) in cash and cash

equivalents

86 896 (486 340) (41 595) (212 897)

Change in cash and cash equivalents in the

balance sheet

86 896 (486 340) (41 595) (212 897)

Cash and cash equivalents as at

the beginning of the period

149 336 685 029 277 827 411 586

Cash and cash equivalents as at

the end of the period

236 232 198 689 236 232 198 689

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

In the third quarter of 2023, the CD PROJEKT Group reported positive Net cash from operating activities of PLN 123 339 thousand.

The consolidated net profit was adjusted for:

a) Non-cash items (an increase in total):

 Depreciation and amortization;

 Amortization of development projects recognized as cost of goods sold which comprises the amortization of

expenditure on the development projects Cyberpunk 2077 together with the Phantom Liberty expansion and

The Witcher 3: Wild Hunt Complete Edition for new generation consoles Xbox Series X|S and PlayStation5;

 Foreign exchange gains/(losses), a decrease resulting mainly from the elimination of foreign exchange

gains/(losses) on the remeasurement of foreign Treasury bonds held by the CD PROJEKT RED segment;

 Increase/(Decrease) in provisions, an increase relating to an increase in provisions for liabilities;

 Other adjustments, an increase resulting mainly from the elimination of the accounting settlement of the costs of

the incentive plan and accounting for the merger of Spokko sp. z o.o. with CD PROJEKT S.A.

b) Items related to changes in current assets and current liabilities (a decrease in total):

 (Increase)/Decrease in inventories, an increase in the balance of cash flows as a result of a drop in inventories;

 (Increase)/Decrease in receivables, a decrease in the balance of cash flows mainly due to an increase in the balance

of trade receivables of the CD PROJEKT RED segment as at the end of the third quarter of 2023 in connection with

an increase in sales in connection with the launch of the Phantom Liberty expansion on 26 September;

 Increase/(decrease) in liabilities, excluding loans and borrowings, an increase in the balance of cash flows in

consequence of an increase in the balance of the Group’s liabilities;

 Change in other assets and liabilities, a decrease in the balance of cash flows resulting mainly from the settlement

of pre-orders for Phantom Liberty by the CD PROJEKT RED and GOG.COM segments and an increase in the balance

of prepayments and deferred costs in the GOG.COM segment.

c) Items reported in other sections of the statement of cash flows – Interest and shares in profits and (Gains)/losses on

investing activities which resulted in a decrease in the balance of cash flows from operating activities;

d) Difference between the corporate income tax recognized in the income statement and the tax actually paid during the

third quarter of 2023, taking into account settlements related to withholding tax.

The outflows relating to expenditure incurred on development projects had the largest effect on the negative balance of Net cash

flows from investing activities during the third quarter of the current year.

In the third quarter of 2023, the CD PROJEKT Group did not generate any material Net cash flows from financing activities.

In total, in the third quarter of 2023, the CD PROJEKT Group generated Net cash inflows of PLN 86 896 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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

General Information

Name of reporting entity:

CD PROJEKT S.A.

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

the prior reporting period)

Legal form: a joint stock company (spółka akcyjna)

Registered office: Jagiellońska 74, 03-301 Warsaw

Country of registration: Poland

Core activities:

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

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

Principal place of business: Warsaw

Registration body:

District Court for the Capital City of Warsaw in Warsaw, 14th Business Department

of the National Court Register

Statistical number (REGON): 492707333

Tax identification number (NIP):

7342867148

Number in the BDO register (national

waste management database):

000141053

Duration of the Group: unspecified

Name of parent entity: CD PROJEKT S.A.

Name of the ultimate parent of

the Group:

CD PROJEKT S.A.

Presentation of the Group

Subsidiaries

CD PROJEKT S.A.

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

The Molasses Flood LLC

CD PROJEKT SILVER Inc.

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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Consolidation policies

Consolidated companies – as at 30 September 2023

% share in capital % share of voting rights consolidation method

CD PROJEKT S.A. parent entity - -

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

CD PROJEKT RED Inc. 100% 100% acquisition accounting

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

The Molasses Flood LLC 71% 71% 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 eliminated from consolidation may not 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 manage the relevant activities,

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

 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. The accounting policies of the 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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Basis of preparation of the interim condensed

consolidated financial statements

These interim condensed consolidated financial statements have been prepared in accordance with the 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 2022, approved for publication on 30 March 2023.

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 going concerns in the foreseeable future, i.e. in the period of at least 12 months after

the balance sheet date.

As at the date of these financial statements being signed, the Management Board of the Parent Company did not identify 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 significant curtailment of its operations to

date.

By the date of preparation of the consolidated financial statements for the period from 1 July to 30 September 2023, 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 not disclosed in

these financial statements.

Compliance with the International Financial Reporting

Standards

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

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

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

Financial Reporting Interpretations Committee (IFRIC), applicable as at 30 September 2023.

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 2023 and the assessment of the impact

of IFRS changes on the future consolidated financial statements of the Group was presented in the second part of the Consolidated

Financial Statements for 2022.

Amendments to standards or interpretations effective from 1 January 2023,

applicable and adopted by the Group

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

2023;

 Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies

(published on 12 February 2021) - endorsed on 2 March 2022 and applicable to annual periods beginning on or after 1 January

2023;

 Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors - endorsed 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 -

endorsed on

11 August 2022

and applicable to 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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

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

endorsed on 8 September 2022 and applicable to periods beginning on or after 1 January 2023;

 Amendments to IAS 12 The International Tax Reform - Pillar Two Model Rules - endorsed on 8 November 2023, applicable to

reporting periods beginning on or after 1 January 2023.

These amendments have no material impact on the accounting policies adopted by the Group with regard to the Group’s operations

or its financial results.

Standards published and endorsed by the EU but not yet effective and their impact on the Group’s

financial statements

 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 does not expect a material impact of the amendments introduced on the accounting policies applied by the Group with

regard to the Group’s operations or its net profit or loss.

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 and Non-current

Liabilities with Covenants - applicable to reporting periods beginning on or after 1 January 2024;

 Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures – Supplier Finance

Arrangements - applicable to reporting periods beginning on or after 1 January 2024;

 Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates - Lack of Exchangeability - applicable to reporting

periods beginning on or after 1 January 2025.

The 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 expressed in foreign currencies are translated into the functional currency based on the exchange rate as at the

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

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

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

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Assumption of comparability of the financial

statements and changes in 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 2022, with the exception of changes in the 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 2022.

Presentation changes and correction of errors

In these interim condensed consolidated financial statements for the period from 1 July to 30 September 2023, adjustments to

certain financial data were made. In order to ensure comparability of the financial data in the reporting period, the data for the

period from 1 July to 30 September 2022, from 1 January to 30 September 2022 and as at 31 December 2022 and 30 June 2023

were adjusted. The data are presented after the following corrections:

 In the statement of financial position as at 31 December 2022, provisions for holiday pay were entered. Consequently, the

following items changed:

- Expenditure on development projects – an increase of PLN 1 967 thousand;

- Deferred income tax assets – an increase of PLN 240 thousand;

- Retained earnings – a decrease of PLN 1 336 thousand;

- Net profit (loss) for the period – a decrease of PLN 602 thousand

;

- Provision for retirement and similar benefits – an increase of PLN 4 145 thousand.

The change affected the Net profit or loss and Equity.

 In the statement of financial position as at 30 June 2023, provisions for holiday pay were entered. Consequently, the following

items changed:

- Expenditure on development projects – an increase of PLN 3 524 thousand;

- Deferred income tax assets – an increase of PLN 386 thousand;

- Retained earnings – a decrease of PLN 1 937 thousand;

- Net profit (loss) for the period – a decrease of PLN 1 052 thousand

;

- Provision for retirement and similar benefits – an increase of PLN 6 899 thousand.

The change affected the Net profit or loss and Equity.

 In the statement of cash flows for the period from 1 July to 30 September 2022, provisions for holiday pay were recognized.

Consequently, the following items changed:

- Net profit/(loss) – an increase of PLN 185 thousand;

- Increase/(Decrease) in provisions – a decrease of PLN 209 thousand;

- Income tax expense – an increase of PLN 24 thousand.

 In the statement of cash flows for the period from 1 January to 30 September 2022, provisions for holiday pay were recognized.

Consequently, the following items changed:

- Net profit/(loss) – a decrease of PLN 601 thousand;

- Increase/(Decrease) in provisions – an increase of PLN 683 thousand;

- Income tax expense – a decrease of PLN 82 thousand.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

 In the income statement for the period from 1 July to 30 September 2022, provisions for holiday pay were recognized.

Consequently, the following items changed:

- Administrative expenses – a decrease of PLN 209 thousand;

- Income tax – an increase of PLN 24 thousand.

The change affected the Net profit or loss and Equity.

 In the income statement for the period from 1 January to 30 September 2022, provisions for holiday pay were recognized.

Consequently, the following items changed:

- Administrative expenses – an increase of PLN 683 thousand;

- Income tax – a decrease of PLN 82 thousand.

The change affected the Net profit or loss and Equity.

In these interim condensed consolidated financial statements for the period from 1 July to 30 September 2023, 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 for the period from 1 July to 30 September 2022 and from 1 January to 30 September 2022 was

changed. The data are presented after the following adjustment:

 In the income statement for the period from 1 July 2022 to 30 September 2022, the presentation of the provisions for the

variable component of the performance-related remuneration of the Management Board Members was changed.

Consequently, the following items changed:

- Selling expenses – a decrease of PLN 9 315 thousand;

- Administrative expenses – an increase of PLN 9 315 thousand.

The change did not affect the Net profit or loss or Equity.

 In the income statement for the period from 1 January to 30 September 2022, the presentation of the provisions for the variable

component of the performance-related remuneration of the Management Board Members was changed. Consequently, the

following items changed:

- Selling expenses – a decrease of PLN 20 023 thousand;

- Administrative expenses – an increase of PLN 20 023 thousand.

The change did not affect the Net profit or loss or Equity.

Audit by the registered auditor

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

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

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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Operating segments

Presentation of the financial statements, taking into account operating segments

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

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

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

segment compared with the last annual consolidated financial statements

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

individual segments in relation to the financial statements for the year ended 31 December 2022.

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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Information on individual operating segments

Continuing operations

Consolidation

eliminations

Total continuing

operations

CD PROJEKT RED GOG.COM

01.07.2023 – 30.09.2023

Sales revenue 382 042 83 700 (23 060) 442 682

from external customers 358 982 83 700 - 442 682

between segments 23 060 - (23 060) -

Net profit/(loss) of

the segment

195 256 7 590 18 202 864

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

97 562 1 306 21 98 889

* restated data

Continuing operations

Consolidation

eliminations

Total continuing

operations

CD PROJEKT RED GOG.COM

01.01.2023 – 30.09.2023

Sales revenue 626 109 168 222 (26 639) 767 692

from external customers 599 538 168 154 - 767 692

between segments 26 571 68 (26 639) -

Net profit/(loss) of

the segment

282 521 7 449 11 289 981

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

210 264 1 659 (62) 211 861

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Consolidated income statement by segment for the period from 01.07.2023 to 30.09.2023

CD PROJEKT RED GOG.COM Consolidation eliminations Total

Sales revenue 382 042 83 700 (23 060) 442 682

Sales of products 380 646 - 9 888 390 534

Sales of services 191 307 (43) 455

Sales of goods for resale and materials 1 205 83 393 (32 905) 51 693

Cost of sales of products, services, goods for resale and materials 105 689 60 579 (23 101) 143 167

Costs of products and services sold 104 494 - (84) 104 410

Cost of goods for resale and materials sold 1 195 60 579 (23 017) 38 757

Gross profit/(loss) on sales 276 353 23 121 41 299 515

Selling expenses 53 275 12 883 (18) 66 140

Administrative expenses 49 031 2 119 150 51 300

Other operating income 7 578 449 (615) 7 412

Other operating expenses 3 555 372 (684) 3 243

(Impairment)/reversal of impairment

of financial instruments

(5) - - (5)

Operating profit/(loss) 178 065 8 196 (22) 186 239

Finance income 57 186 3 238 - 60 424

Finance costs 10 015 3 019 (40) 12 994

Profit/(loss) before tax 225 236 8 415 18 233 669

Income tax 29 980 825 - 30 805

Net profit/(loss) 195 256 7 590 18 202 864

Net profit/(loss) attributable to owners of CD PROJEKT S.A. 195 256 7 590 18 202 864

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Consolidated income statement by segment for the period from 01.07.2022 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 34 989 10 387 (312) 45 064

Administrative expenses 25 391 1 611 (29) 26 973

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) 94 859 2 435 10 97 304

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

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

Profit/(loss) before tax 110 598 1 624 25 112 247

Income tax 13 036 318 4 13 358

Net profit/(loss) 97 562 1 306 21 98 889

Net profit/(loss) attributable to owners of CD PROJEKT S.A. 97 562 1 306 21 98 889

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Consolidated income statement by segment for the period from 01.01.2023 to 30.09.2023

CD PROJEKT RED GOG.COM Consolidation eliminations Total

Sales revenue 626 109 168 222 (26 639) 767 692

Sales of products 617 257 - 11 377 628 634

Sales of services 484 746 (189) 1 041

Sales of goods for resale and materials 8 368 167 476 (37 827) 138 017

Cost of sales of products, services, goods for resale and materials 157 588 120 331 (26 563) 251 356

Costs of products and services sold 148 210 4 (113) 148 101

Cost of goods for resale and materials sold 9 378 120 327 (26 450) 103 255

Gross profit/(loss) on sales 468 521 47 891 (76) 516 336

Selling expenses 119 431 33 067 (28) 152 470

Administrative expenses 105 926 6 045 (67) 111 904

Other operating income 41 294 1 140 (1 687) 40 747

Other operating expenses 12 160 1 001 (1 605) 11 556

(Impairment)/reversal of impairment

of financial instruments

(1) - - (1)

Operating profit/(loss) 272 297 8 918 (63) 281 152

Finance income 75 986 4 019 - 80 005

Finance costs 6 325 4 596 (128) 10 793

Profit/(loss) before tax 341 958 8 341 65 350 364

Income tax 59 437 892 54 60 383

Net profit/(loss) 282 521 7 449 11 289 981

Net profit/(loss) attributable to owners of CD PROJEKT S.A. 282 521 7 449 11 289 981

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Consolidated income statement by segment for the period from 01.01.2022 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 104 867 31 261 (431) 135 697

Administrative expenses 69 343 4 775 (256) 73 862

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) 229 751 4 251 (120) 233 882

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

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

Profit/(loss) before tax 262 823 2 190 (55) 264 958

Income tax 52 559 531 7 53 097

Net profit/(loss) 210 264 1 659 (62) 211 861

Net profit/(loss) attributable to owners of CD PROJEKT S.A. 210 264 1 659 (62) 211 861

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Consolidated statement of financial position by segment as at 30.09.2023

CD PROJEKT RED GOG.COM Consolidation eliminations Total

NON-CURRENT ASSETS 1 241 119 51 089 (17 284) 1 274 924

Property, plant and equipment 170 522 2 559 (1 462) 171 619

Intangible assets 67 982 2 015 (490) 69 507

Expenditure on development projects 572 913 2 271 234 575 418

Investment properties 34 612 - - 34 612

Goodwill 56 438 - - 56 438

Investments in subordinated entities 15 552 - (15 552) -

Shares in non-consolidated subordinated entities 40 863 - - 40 863

Prepayments and deferred costs 5 390 43 113 - 48 503

Other financial assets 254 687 - - 254 687

Deferred tax assets 21 780 1 131 (14) 22 897

Other receivables 380 - - 380

CURRENT ASSETS 1 075 461 82 995 (20 649) 1 137 807

Inventories 7 463 - - 7 463

Trade receivables 297 037 11 445 (20 649) 287 833

Current income tax receivable 14 853 - - 14 853

Other receivables 31 943 1 804 - 33 747

Prepayments and deferred costs 9 682 16 704 - 26 386

Other financial assets 267 106 937 - 268 043

Bank deposits over 3 months 263 250 - - 263 250

Cash and cash equivalents 184 127 52 105 - 236 232

TOTAL ASSETS 2 316 580 134 084 (37 933) 2 412 731

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

CD PROJEKT RED GOG.COM Consolidation eliminations Total

EQUITY 2 177 266 46 623 (15 745) 2 208 144

Equity of the shareholders of CD PROJEKT S.A. 2 177 266 46 623 (15 745) 2 208 144

Share capital 99 911 136 (136) 99 911

Supplementary capital 1 681 868 38 251 (5 515) 1 714 604

Share premium 116 700 - - 116 700

Other reserves 16 943 850 (1 863) 15 930

Foreign exchange differences on translation 866 (65) 1 014 1 815

Retained earnings (21 543) 2 (9 256) (30 797)

Net profit (loss) for the period 282 521 7 449 11 289 981

Non-controlling interests - - - -

NON-CURRENT LIABILITIES 40 225 1 037 (1 010) 40 252

Other financial liabilities 19 640 1 010 (1 010) 19 640

Other liabilities 2 501 - - 2 501

Deferred tax provision 49 - - 49

Deferred income 2 069 - - 2 069

Provision for retirement and similar benefits 339 27 - 366

Other provisions 15 627 - - 15 627

CURRENT LIABILITIES 99 089 86 424 (21 178) 164 335

Other financial liabilities 14 239 529 (529) 14 239

Trade payables 22 194 65 394 (20 286) 67 302

Current income tax liabilities - 147 - 147

Other liabilities 4 774 8 948 - 13 722

Deferred income 7 051 6 056 - 13 107

Provision for retirement and similar benefits 7 155 1 - 7 156

Other provisions 43 676 5 349 (363) 48 662

TOTAL EQUITY AND LIABILITIES 2 316 580 134 084 (37 933) 2 412 731

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Consolidated statement of financial position by segment as at 30.06.2023*

CD PROJEKT RED GOG.COM Consolidation eliminations Total

NON-CURRENT ASSETS 1 273 234 44 633 (17 281) 1 300 586

Property, plant and equipment 159 837 2 778 (1 606) 161 009

Intangible assets 69 146 1 129 (490) 69 785

Expenditure on development projects 597 653 2 212 234 600 099

Investment properties 37 429 - - 37 429

Goodwill 56 438 - - 56 438

Investments in subordinated entities 15 405 - (15 405) -

Shares in non-consolidated subordinated entities 43 477 - - 43 477

Prepayments and deferred costs 6 100 36 627 - 42 727

Other financial assets 242 203 - - 242 203

Deferred tax assets 45 171 1 887 (14) 47 044

Other receivables 375 - - 375

CURRENT ASSETS 840 247 51 078 (7 404) 883 921

Inventories 8 118 - - 8 118

Trade receivables 83 176 5 035 (4 654) 83 557

Current income tax receivable 10 784 1 572 - 12 356

Other receivables 40 432 1 927 - 42 359

Prepayments and deferred costs 9 484 14 760 (2 750) 21 494

Other financial assets 249 576 - - 249 576

Bank deposits over 3 months 317 125 - - 317 125

Cash and cash equivalents 121 552 27 784 - 149 336

TOTAL ASSETS 2 113 481 95 711 (24 685) 2 184 507

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

CD PROJEKT RED GOG.COM Consolidation eliminations Total

EQUITY 2 007 539 38 887 (15 618) 2 030 808

Equity of the shareholders of CD PROJEKT S.A. 2 007 539 38 887 (15 618) 2 030 808

Share capital 99 911 136 (136) 99 911

Supplementary capital 1 681 868 38 251 (5 515) 1 714 604

Share premium 116 700 - - 116 700

Other reserves 13 997 704 (1 717) 12 984

Foreign exchange differences on translation (741) (65) 1 014 208

Retained earnings 5 436 2 (9 256) (3 818)

Net profit (loss) for the period 90 368 (141) (8) 90 219

Non-controlling interests - - - -

NON-CURRENT LIABILITIES 30 014 1 174 (1 147) 30 041

Other financial liabilities 18 206 1 147 (1 147) 18 206

Other liabilities 2 500 - - 2 500

Deferred tax provision 46 - - 46

Deferred income 2 753 - - 2 753

Provision for retirement and similar benefits 339 27 - 366

Other provisions 6 170 - - 6 170

CURRENT LIABILITIES 75 928 55 650 (7 920) 123 658

Other financial liabilities 8 251 743 (516) 8 478

Trade payables 19 501 34 972 (4 603) 49 870

Other liabilities 5 415 5 345 - 10 760

Deferred income 18 479 9 882 (2 750) 25 611

Provision for retirement and similar benefits 6 908 1 - 6 909

Other provisions 17 374 4 707 (51) 22 030

TOTAL EQUITY AND LIABILITIES 2 113 481 95 711 (24 685) 2 184 507

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Consolidated statement of financial position by segment as at 31.12.2022*

CD PROJEKT RED GOG.COM Consolidation eliminations Total

NON-CURRENT ASSETS 1 106 752 32 593 (17 160) 1 122 185

Property, plant and equipment 143 837 3 269 (1 854) 145 252

Intangible assets 69 476 171 (490) 69 157

Expenditure on development projects 473 495 1 439 235 475 169

Investment properties 42 560 - - 42 560

Goodwill 56 438 - - 56 438

Investments in subordinated entities 15 092 - (15 092) -

Shares in non-consolidated subordinated entities 41 607 - - 41 607

Prepayments and deferred costs 5 314 25 760 - 31 074

Other financial assets 207 437 - - 207 437

Deferred tax assets 51 107 1 954 41 53 102

Other receivables 389 - - 389

CURRENT ASSETS 1 095 224 64 332 (5 410) 1 154 146

Inventories 12 701 - - 12 701

Trade receivables 164 079 6 621 (5 410) 165 290

Current income tax receivable 38 1 420 - 1 458

Other receivables 55 340 1 799 - 57 139

Prepayments and deferred costs 6 508 16 378 - 22 886

Other financial assets 279 515 - - 279 515

Bank deposits over 3 months 337 330 - - 337 330

Cash and cash equivalents 239 713 38 114 - 277 827

TOTAL ASSETS 2 201 976 96 925 (22 570) 2 276 331

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

CD PROJEKT RED GOG.COM Consolidation eliminations Total

EQUITY 2 008 048 38 715 (15 297) 2 031 466

Equity of the shareholders of CD PROJEKT S.A. 2 008 048 38 715 (15 297) 2 031 466

Share capital 100 771 136 (136) 100 771

Supplementary capital 1 539 839 33 001 (5 515) 1 567 325

Share premium 116 700 - - 116 700

Treasury shares (99 993) - - (99 993)

Other reserves 3 268 391 (1 404) 2 255

Foreign exchange differences on translation 955 (65) 1 014 1 904

Retained earnings 5 015 4 (9 006) (3 987)

Net profit (loss) for the period 341 493 5 248 (250) 346 491

Non-controlling interests - - - -

NON-CURRENT LIABILITIES 36 156 1 367 (1 337) 36 186

Other financial liabilities 18 883 1 337 (1 337) 18 883

Other liabilities 2 620 - - 2 620

Deferred tax provision 50 - - 50

Deferred income 3 666 3 - 3 669

Provision for retirement and similar benefits 339 27 - 366

Other provisions 10 598 - - 10 598

CURRENT LIABILITIES 157 772 56 843 (5 936) 208 679

Other financial liabilities 8 687 1 417 (526) 9 578

Trade payables 38 787 38 236 (4 904) 72 119

Current income tax liabilities 2 116 - - 2 116

Other liabilities 4 382 5 862 - 10 244

Deferred income 16 379 6 046 - 22 425

Provision for retirement and similar benefits 4 154 1 - 4 155

Other provisions 83 267 5 281 (506) 88 042

TOTAL EQUITY AND LIABILITIES 2 201 976 96 925 (22 570) 2 276 331

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Operating segments

In the third quarter of 2023, 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 Vancouver Studio Ltd. (Canada).

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

promotions, and the production, sales licensing and releasing the accompanying products which use 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 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 has started internal concept

work on the third franchise for a planned future video game with the code name Hadar.

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.

Key products

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

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

2077 with an expansion The Liberty Phantom released on 26 September 2023.

A network game Gwent: The Witcher Card Game has been available since 2018 (PC, macOS, iOS, Android). In addition, the Parent

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

One, PlayStation 4, Android) and Gwent: Rogue Mage (PC, iOS, Android) - a single player expansion to Gwent: The Witcher Card

Game.

GOG.COM

The scope and model of operations

GOG.COM is 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, Russian, Chinese and Polish, offering customers not only a fully localized

website or games, but also (with the exception of the Russian version) dedicated customer service, technical support, direct

marketing activity in a given language and popular local payment methods (in twelve currencies). On GOG.COM, games are

available for Windows PCs, as well as for macOS and Linux operating systems.

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

application. The platform makes it possible to purchase a 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 the handling of

payments made in the PC version of the game.

Key products

As at the date of publication of this report, more than 9 000 products from over 1 200 partners are available on the GOG.COM

digital distribution platform. These include both timeless classics and the latest titles from such recognizable companies as

Bethesda, Disney, Electronic Arts, Ubisoft, Konami and Warner Bros. Games are also distributed via the proprietary GOG GALAXY

application designed to provide the most convenient and functional experience for purchasing, playing and updating games offered

in the GOG.COM catalogue and enabling, among other things, online play between platforms.

Through GOG.COM, the Group also sells its own products directly to retail customers, i.e. games from the Witcher universe and

Cyberpunk 2077.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

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

of 2023 by operating segment

CD PROJEKT RED

Events relating to Cyberpunk 2077

On 6 July 2023, CD PROJEKT RED announced the dates and locations for its community event series, the Phantom Liberty Tour.

As part of the series, eight events were held around the world during which fans had the chance to play a preview of Cyberpunk

2077 expansion and meet the creators from CD PROJEKT RED.

On 14 July, Cyberpunk 2077 crossed the rating threshold on Steam to “Very Positive” - meaning that at least 80 per cent of the

reviews posted were classified as positive.

The global launch of the novel Cyberpunk 2077: No Coincidence, by a popular Polish science fiction writer Rafał Kosik, took place

on 8-10 August 2023.

On 22 August, during the opening event at gamescom in Cologne, Opening Night Live, CD PROJEKT RED presented

New Ways to

Play - a video announcing new features introduced to Cyberpunk 2077 and the Phantom Liberty expansion as part of the biggest

2.0 update to date. On the same day, NVIDIA, a close partner of the CD PROJEKT RED studio, presented a trailer announcing and

demonstrating the innovative DLSS 3.5 technology. Among the titles that are the first to support this technology is Cyberpunk 2077:

Phantom Liberty.

Between 23 and 27 August 2023, the participants in the gamescom fair in Cologne had the opportunity to play a preview of Phantom

Liberty as part of cooperation with Xbox.

On 14 September 2023, the studio launched a special episode of Night City Wire to promote Phantom Liberty, which was focused

on Idris Elba and the character he plays, as well as on the music.

The first reviews of the Phantom Liberty expansion appeared on 20 September. On 21 September, Cyberpunk 2077 received

update 2.0, introducing a number of changes to the base gameplay. Five days later, on 26 September, the Phantom Liberty

expansion had its global premiere.

On 29 September 2023, a track by Dawid Podsiadło

composed especially for Phantom Liberty was released. The newly-launched

music video appeared in the game’s credits (the so-called credit song).

After the reporting period, on 5 October 2023, the CD PROJEKT Investor Day took place. During the event, the Management Board

of CD PROJEKT S.A. summarized the release of Phantom Liberty and announced that by 3 October 2023 sales of the expansion

had exceeded 3 million copies. On the other hand, the basic version of the game, Cyberpunk 2077, has sold more than 25 million

copies.

On that day, it was also announced that CD PROJEKT had entered into collaboration with the production studio Anonymous Content

to jointly create a live-action project in the world of Cyberpunk.

On 10 November 2023, Cyberpunk 2077: Phantom Liberty won awards for the best game expansion and the best game trailer at

the Golden Joystick 2023 gala.

On 13 November, Cyberpunk 2077 won 5 nominations in The Game Awards 2023. The Cyberpunk 2077: Phantom Liberty

expansion was nominated in the categories of the best narrative, the best acting performance for Idris Elba (who plays the role of

the secret agent Solomon Reed in the game) and in the Player’s Voice category where the winner is selected solely by the players.

Moreover, the basic version of the game, Cyberpunk 2077, won the nominations for the best community support and the best

ongoing game.

On 21 November, CD PROJEKT announced the release of Cyberpunk 2077: Ultimate Edition. It is an omnibus edition of Cyberpunk

2077 comprising the basic version of the game, the feature expansion Phantom Liberty, Update 2.0, as well as a set of bonus

content and access to the My Rewards item pack. The title will be released for Xbox Series X|S and PlayStation 5 consoles and for

PC in digital box issue distribution and will be, at the same time, the first edition of the game for new generation consoles. The

launch is scheduled for 5 December 2023.

On 28 November, CD PROJEKT also announced that, according to the latest estimates, by the date of publication of this report,

total sales of the Cyberpunk 2077 - Phantom Liberty expansion had exceeded 4.3 million copies.

Events relating to the Witcher series games

After the reporting period, on 19 October 2023, a crowdfunding campaign was launched for a board game The Witcher: Path of

Destiny, developed in collaboration with Go On Board.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Other

On 3 July 2023, a summer internship programme began at CD PROJEKT RED. For three months, the selected participants had the

opportunity to get to know the work of the studio from the inside and participate in the final phase of preparation for the release of

the Phantom Liberty expansion.

18 July 2023 saw the re-opening of the CD PROJEKT RED GEAR Store

- a mail-order shop with gadgets from the Witcher and

Cyberpunk universes addressed to fans of the studio’s games. The shop is now run by an external partner, DPI Merchandising.

The Promised Land Art Festival, organized by CD PROJEKT RED and EC1 in Łódź, took place between 2 and 6 September 2023.

For four days, representatives of the video games, film and art sectors had the opportunity to participate in interesting lectures,

panel discussions, workshops and networking to share experiences and gain new contacts. The representatives of CD PROJEKT

RED were also among the speakers and lecturers at the event.

GOG.COM

Digital distribution of games

As at the date of publication of this report, the product range on GOG.COM comprises more than 9 000 items.

In the third quarter of 2023, the GOG.COM catalogue expanded to include, among other things, Cyberpunk 2077: Phantom Liberty,

Fallout 4: Game of the Year Edition, Jagged Alliance 3, Warhammer 40,000: Dawn of War II - Grand Master Collection and Yakuza:

Like a Dragon Hero Edition.

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.

During the reporting period, special promotions took place on GOG.COM in addition to weekly promotions - in July and August

these included the ‘Make the classics last forever’ classic games sale, the French Games Week, the Made in Ukraine games sale

and the Autumn Sale, among other things. In turn, in September, a special promotional event was organized to celebrate

GOG.COM’s 15th anniversary.

The key event on GOG.COM during the reporting period was the release of Cyberpunk 2077: Phantom Liberty. The expansion was

released on the platform on 26 September, becoming an absolute bestseller - by 3 October 2023, approximately 10% of over

3 million copies of the Cyberpunk 2077 expansion sold had been purchased via the GOG.COM platform.

Other corporate events

On 10 July 2023, as a result of decisions adopted by the Board of Directors of CD PROJEKT Inc. (currently: CD PROJEKT RED Inc.)

and CD PROJEKT S.A. (its sole shareholder), the company’s name was changed from “CD PROJEKT Inc.” to “CD PROJEKT RED Inc.”

and its principal place of business was relocated to Boston (Waltham), Massachusetts.

On 26 July 2023, the Management Board of the Parent Company announced a decision to adjust the scale and structure of the

Parent Company’s team to its operating needs and project-and-publishing plans executed under the strategy of the CD PROJEKT

Group. As a result, a reduction in workforce is being carried out, covering 9% of the personnel in the CD PROJEKT RED studio,

including, among other things, the production and publishing teams as well as the back office. The decision adopted is related to

the ongoing transformation which involved, among other things, the CD PROJEKT RED studio implementing the Agile methodology,

making production methods more efficient and optimizing work organization. The process is planned to end in the first quarter of

2024.

On 31 August 2023, the District Court for the Capital City of Warsaw in Warsaw entered the merger of CD PROJEKT S.A. with its

subsidiary Spokko sp. z o.o. as the target company in the Register of Businesses. The merger was carried out in accordance with

the merger plan announced on 20 April 2023

On 21 September 2023, in order to harmonize the corporate names of the positions held by the Management Board members, the

Supervisory Board of CD PROJEKT S.A. decided that, starting from the date of registration of the Company’s amended Articles of

Association, which took place on 9 October 2023:

 Adam Kiciński, who held the position of the President of the Parent Company’s Management Board until that date, would

hold the position of a Member of the Management Board of the Parent Company for the current term of office;

 Piotr Nielubowicz, who held the position of the Vice-President of the Management Board responsible for Finance until

that date, would hold the position of a Member of the Management Board of the Parent Company for the current term of

office.

In addition, on the same date, the Management Board of CD PROJEKT S.A., acting on the basis of the Rules of Procedure of the

Management Board, decided to adopt five additional designations of the functions performed by the Members of the Management

Board, corresponding to the current internal segregation of duties with regard to the individual areas of the Parent Company’s

operations and the roles performed by the Members of the Management Board. As a result, the Members of the Management Board

will also use the following terms to specify their respective positions:

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

 Adam Kiciński - Chief Executive Officer (CEO);

 Piotr Nielubowicz - Chief Financial Officer (CFO);

 Adam Badowski - Chief Creative Officer (CCO);

 Michał Nowakowski - Chief Commercial Officer (CCO);

 Piotr Karwowski - Joint Chief Operating Officer (Joint COO);

 Paweł Zawodny - Joint Chief Operating Officer (Joint COO);

 Jeremiah Cohn - Chief Marketing Officer (CMO).

On 5 October 2023, Mr. Adam Kiciński, CEO of CD PROJEKT S.A., informed the Company of his intention to stand as a future

candidate for the position of Member of the Supervisory Board of the Company from 2025 and, as a consequence, of his intention

to resign, in the future, from the position of Member of the Management Board as of the end of 2024. The full contents of Mr. Adam

Kiciński’s letter to the Parent Company is attached as an appendix to the current report no. 39/2023

Moreover, in connection with the said decision, the Management Board of CD PROJEKT S.A. has decided that as of 1 January 2024

the internal segregation of duties with regard to the individual areas of the Company’s business activities among the Members of

the Management Board will be updated and, as a consequence, the roles and designations of the functions of the Members of the

Management Board will be changed as follows:

 Adam Kiciński will perform the role of the Chief Strategy Officer (CSO);

 the role of the Chief Executive Officer (CEO) will be performed jointly by: Mr. Adam Badowski, currently performing the

role of the Chief Creative Officer, who has been with the Parent Company for 20 years, and Mr. Michał Nowakowski,

currently performing the role of the Chief Commercial Officer, who has been with the Parent Company for 18 years.

Mr. Adam Badowski and Mr. Michał Nowakowski will use the same functional designation: Joint Chief Executive Officer

(Joint CEO).

Factors affecting the Group’s future performance

For the future growth of the Parent 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, to work on the Group’s future releases is

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

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

CD PROJEKT

Group Sustainable Development Report for 2022.

At the same time, the effective execution of the CD PROJEKT RED production plan presented in October 2022 as part of the

Strategy Update

and a further increase in franchise recognizability and popularity (including through collaboration with external

parties) and enhancing selected titles developed as part of the IP owned to include a multiplayer feature will be the key aspects to

support the Group’s growth.

The material Group-specific external and internal factors which may have a negative effect on the Group’s operations and

development, identified by the Management Board and the risk management system functioning within the Parent Company, are

described in the risks section of the Management Board Report on CD PROJEKT Group activities for 2022

CD PROJEKT RED

In the CD PROJEKT RED segment, the expansion of the operations is linked directly 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 Parent Company. In the following periods, the progress

of the production work and the market acceptance of the Parent Company’s next productions in progress, as well as the creation

and release of high-quality support products within the Parent Company’s franchises, which will contribute to the growth of the

Parent Company’s brand recognition, will be of key importance to the Parent Company’s development and results.

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

edition of Cyberpunk 2077 consisting of the basic version of the game, the feature expansion Phantom Liberty and a set of premium

content.

Another important process in the context of the development of the CD PROJEKT RED studio, which is under way and whose

implementation will continue in the coming quarters, is the integration of development projects with the new Unreal Engine 5,

following the signing of the licence and partnership agreement with Epic Games in March 2022. The use of the new engine should

improve the game development process. The strategic partnership assumes improving the UE5 engine in terms of handling open

world type games and the adaptation and optimization of its elements, paying attention 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. Starting work on the

EU5 engine opened prospects for recruitment to the studio’s development teams due to a good knowledge of the Unreal Engine

among game creators.

The key factor for maintaining the current high growth rate of the CD PROJEKT RED segment in the future is to further develop the

in-house ability to produce games of the highest world class and quality, combined with the ability to communicate effectively with

players around the world. Both are part of the RED 2.0 studio’s ongoing transformation which aims, among other things, to change

the way games are developed to a more flexible one, based on agile methodologies and supporting the quality of future products.

The development of the newly created CD PROJEKT RED North America studio, including the opening of an office in Boston, is an

important element of CD PROJEKT RED’s strategy. The transformation of the business to a publishing model based on two

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

concurrent brands and several simultaneous projects will potentially allow production and financial optimization, an increased

frequency of launches and higher total revenue and further diversification of risks, while creating more opportunities for professional

self-realization for the creators employed by the Parent Company.

GOG.COM

In the GOG.COM segment, growth was supported by the increasing propensity of consumers to purchase games directly online in

recent years.

For the further development of the GOG.COM platform, it will be important to make it more popular among gamers and to attract

more newly released 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. The successive first releases of new games on GOG.COM each

time contribute to increasing user activity and translate into sales growth. In addition to continuously expanding the catalogue of

the products offered, the growth of GOG sp. z o.o.’s operations also requires broadening the user base by reaching out to 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, collaboration with business partners and looking

for new opportunities for partnership actively, and the synergies resulting from the cooperation with CD PROJEKT S.A.

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

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

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

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

the platform.

Other

The development of the CD PROJEKT Group will also be influenced by the development projects carried out by its subsidiary

The Molasses Flood.

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 the CD PROJEKT Group’s products as well as games distributed on the GOG.COM platform in the territory of

Russia and Belarus.

The Company estimated that in the period of 12 months from March 2021 to February 2022 the total share of Russia and Belarus in

the 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 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 Company has terminated its cooperation with the Russian and Belarussian suppliers and is not currently considering engaging

in new collaboration.

As of the date of publication of these financial statements, the Group’s operating activities are carried out without any disruptions,

and the effects of the Russian armed invasion of Ukraine do not have a significant direct negative impact on the Group’s operations.

In the opinion of the Management Board of the Parent Company, the current political and economic situation in Ukraine does not

materially affect the quantitative data presented in the 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 2023, 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 future scale and 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 Ukraine by the Russian armed forces 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 Parent Company’s knowledge at the date of publication of these

financial statements.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Seasonality or cyclicality of the Group’s operations

CD PROJEKT RED

The segment’s 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 projects on a new game starts before the production of

the previous game has been completed and the game has been released on the market.

CD PROJEKT RED also engages in smaller-scale projects, e.g. expansions for its own games or adapting the existing products to

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

With regard to games which have already been released, their yearly sales breakdown is dependent on the schedule of periodic

sale campaigns. In most cases, strong sales are reported in the second and fourth quarters, while the first and the third quarters

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

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

continually expanding its audience and exploring other types of media and products.

Chart

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

in 2011-2023 (in PLN thousand)

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 2023

(all amounts 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 reported in the second and fourth quarters, with lower revenues in the first and

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

these quarters.

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

Chart 2 Quarterly distribution of sales of goods for resale and materials of the GOG.COM segment in 2018-2023 (in PLN thousand)

Key customers

The CD PROJEKT Group collaborates with external customers whose share in revenue exceeds 10% of the Group’s consolidated

revenue.

Within the CD PROJEKT RED segment, the commercial activities carried out by CD PROJEKT S.A. in cooperation with two customers

generated cumulatively, by the end of the third quarter of 2023, sales revenue exceeding 10% of the Group's total consolidated

sales revenue, amounting to PLN 303 887 thousand and PLN 131 422 thousand, i.e. 39.58% and 17.12%, respectively, of the Group’s

total revenue. These customers are not related to either CD PROJEKT S.A. or its subsidiaries.

None of the Group’s other external customers exceeded the threshold of 10% of the Group’s consolidated revenue.

40000

80000

120000

160000

200000

Q1 Q2 Q3 Q4

2018 2019 2020 2021 2022 2023

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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

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

or loss and cash flows which are unusual in terms of their type, size and impact

Material events

The release of the Phantom Liberty expansion of Cyberpunk 2077 was a material event which was not observed in the comparative

period but which affected the net profit or loss, assets, liabilities and cash flows of the CD PROJEKT Group in the third quarter of

2023, resulting in:

 an increase in Net sales of products, services, goods for resale and materials in both segments of the Group;

 a decrease in the balance of Expenditure on development projects and an increase in Costs of products and services

sold in the CD PROJEKT RED segment due to the settlement and commencement of amortization of the expenditure on

the production of the expansion;

 an increase in Costs of products and services sold in the CD PROJEKT RED segment due to a change in the amortization

pattern of the basic Cyberpunk 2077 game;

 an increase in expenditure on promotion (Selling expenses) in the CD PROJEKT RED segment;

 an increase in Trade Receivables as a consequence of the high sales associated with the release of the Phantom Liberty

expansion on 26 September this year, i.e. towards the end of the reporting period;

 a decrease in the balance of Deferred income in the CD PROJEKT RED and GOG.COM segments due to the settlement

of pre-orders for the expansion.

In connection with the entry of the merger of CD PROJEKT S.A. with its subsidiary Spokko sp. z o.o., as the acquired company, by

the District Court for the Capital City of Warsaw in the Register of Businesses on 31 August 2023, CD PROJEKT accounted for the

merger, which resulted, among other things, in: an increase in Finance income as a consequence of the reversal of the write-down

of the value of shares in the acquired company recognized in 2022, the recognition of the past results of Spokko sp. z o.o. in the

Parent Company’s Equity under Retained earnings and the recognition of the current revenue and costs of Spokko sp. z o.o. in the

current profit and loss account of the Parent Company.

At the end of the period discussed, the CD PROJEKT RED segment revised its estimates of contractual obligations towards the

distributors of physical copies of the Cyberpunk 2077 game, increasing the level of Other provisions, which also translated into an

increase in the Costs of products and services sold.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 2. Property, plant and equipment

Changes in property, plant and equipment (by category) for the period 01.01.2023 – 30.09.2023

Land

Buildings and

structures

Civil and

hydraulic

engineering

facilities

Plant and

machinery

Vehicles

Other fixed

assets

Assets under

construction

Total

Gross carrying amount

as at 01.01.2023

40 435 82 297 1 925 58 856 3 251 5 776 28 089 220 629

Increase due to: - 30 181 2 867 25 842 956 2 360 14 104 76 310

purchase - 163 2 18 249 295 393 14 104 33 206

business

combinations

- 52 - 737 - 64 - 853

lease contracts

concluded

- 2 813 - - 642 - - 3 455

transfer from

investment

properties

- 6 577 - 316 - - - 6 893

transfer from assets

under construction

- 20 148 2 865 6 512 - 1 359 - 30 884

reclassification - 49 - - - 544 - 593

other - 379 - 28 19 - - 426

Decrease due to: - 4 497 859 1 396 462 35 30 939 38 188

sale - - - 367 136 - - 503

scrapping - 1 036 366 660 5 35 1 2 103

transfer from assets

under construction

- - - - - - 30 884 30 884

reclassification - - 493 100 - - 54 647

lease contracts

expired

- 3 461 - - 321 - - 3 782

free-of-charge

transfer

- - - 269 - - - 269

Gross carrying amount

as at 30.09.2023

40 435 107 981 3 933 83 302 3 745 8 101 11 254 258 751

Accumulated

depreciation as at

01.01.2023

1 817 25 351 717 42 482 1 537 3 473 - 75 377

Increase due to: 425 6 351 155 9 880 488 822 - 18 121

depreciation charge 425 5 062 155 9 227 475 765 - 16 109

transfer from

investment

properties

- 890 - 48 - - - 938

business

combinations

- 21 - 579 - 51 - 651

reclassification - 80 - - - 6 - 86

other - 298 - 26 13 - - 337

Decrease due to: - 4 377 209 1 363 382 35 - 6 366

sale - - - 366 57 - - 423

scrapping - 916 203 648 5 35 - 1 807

reclassification - - 6 80 - - - 86

lease contracts

expired

- 3 461 - - 320 - - 3 781

free-of-charge

transfer

- - - 269

- - 269

Accumulated

depreciation as at

30.09.2023

2 242 27 325 663 50 999 1 643 4 260 - 87 132

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Impairment write-downs

as at 01.01.2023

- - - - - - - -

Impairment write-downs

as at 30.09.2023

- - - - - - - -

Net carrying amount as

at 01.01.2023

38 618 56 946 1 208 16 374 1 714 2 303 28 089 145 252

Net carrying amount as

at 30.09.2023

38 193 80 656 3 270 32 303 2 102 3 841 11 254 171 619

Amounts of contractual commitments to purchase property, plant and equipment in the future

30.09.2023 30.06.2023 31.12.2022

Construction of an office building on the CD PROJEKT campus 97 657 97 072 -

Leasing of passenger cars 450 554 599

Total 98 107 97 626 599

Right-of-use assets relating to property, plant and equipment

30.09.2023

Gross amount

Accumulated

depreciation

Net amount

Land 14 540 822 13 718

Real properties 11 996 5 111 6 885

Plant and machinery 48 24 24

Vehicles 2 250 433 1 817

Total 28 834 6 390 22 444

30.06.2023

Gross amount

Accumulated

depreciation

Net amount

Land 14 540 771 13 769

Real properties 9 385 4 606 4 779

Vehicles 2 464 674 1 790

Total 26 389 6 051 20 338

31.12.2022

Gross amount

Accumulated

depreciation

Net amount

Land 14 540 669 13 871

Real properties 14 332 8 735 5 597

Civil and hydraulic engineering facilities 99 99 -

Vehicles 2 264 625 1 639

Total 31 235 10 128 21 107

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 3. Intangible assets and expenditure on development projects

Changes in intangible assets and expenditure on development projects for the period 01.01.2023 –

30.09.2023

Expenditure on

development projects

in progress

Exp

enditure on

completed

development projects

Trademarks

Patents and licenses

Author’ s economic

rights

Computer software

Goodwill

Intangible assets

under construction

Total

Gross carrying amount

as at 01.01.2023*

249 244 930 087 33 199 4 160 18 469 50 078 56 438 172 1 341 847

Increase due to: 218 961 272 682 23 1 287 159 1 026 - 3 249 497 387

purchase - - - 1 287 129 571 - 2 493 4 480

assets generated

internally

218 961 - - - - - - 756 219 717

transfer from

intangible assets

under construction

- - - - - 343 - - 343

reclassification from

expenditure on

development

projects in progress

- 272 682 - - - - - - 272 682

business

combinations

- - 23 - 25 71 - - 119

reclassification - - - - 5 41 - - 46

Decrease due to: 287 272 - - 46 - 4 552 - 360 292 230

scrapping 2 745 - - - - 4 552 - - 7 297

utilization of

impairment write-

downs

11 844 - - - - - - - 11 844

transfer from

intangible assets

under construction

- - - - - - - 344 344

transfer from

expenditure on

development

projects

in progress

272 683 - - - - - - - 272 683

reclassification - - - 46 - - - 16 62

Gross carrying amount

as at 30.09.2023

180 933 1 202 769 33 222 5 401 18 628 46 552 56 438 3 061 1 547 004

Accumulated

amortization as at

01.01.2023

- 657 011 - 2 767 301 33 853 - - 693 932

Increase due to: - 137 497 - 1 515 396 3 076 - - 142 484

amortization charge - 137 497 - 1 515 371 3 009 - - 142 392

business

combinations

- - - - 25 67 - - 92

Decrease due to: - - - - - 4 551 - - 4 551

scrapping - - - - - 4 551 - - 4 551

Accumulated

amortization as at

30.09.2023

- 794 508 - 4 282 697 32 378 - - 831 865

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Impairment write-downs

as at 01.01.2023

33 375 13 776 - - - - - - 47 151

Increase - - - - - - - - -

Decrease due to: 33 375 - - - - - - - 33 375

reversal of write-

downs

21 531 - - - - - - - 21 531

release of write-

downs (write-off)

11 844 - - - - - - - 11 844

Impairment write-downs

as at 30.09.2023

- 13 776 - - - - - - 13 776

Net carrying amount as

at 01.01.2023

215 869 259 300 33 199 1 393 18 168 16 225 56 438 172 600 764

Net carrying amount as

at 30.09.2023

180 933 394 485 33 222 1 119 17 931 14 174 56 438 3 061 701 363

* restated data

Amounts of contractual commitments to purchase intangible assets in the future

None.

Note 4. Goodwill

During the period from 1 July to 30 September 2023, there were no changes in goodwill.

Note 5. Investment properties

The Parent Company owns a real estate complex located at Jagiellońska 76 in Warsaw. Given that a part of the properties purchased

is leased out to third parties, including CD PROJEKT Group companies, the Group has decided to classify these properties partly

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.

The last appraisal report by the expert surveyor, for the buildings recognized as investment properties, was prepared on the basis

of unit prices for the construction of buildings with the most similar parameters included in the Bistyp Catalogue of Unit Prices for

Works and Investment Facilities 2021. The valuation of the individual assets amounted to PLN 60 692 thousand for the buildings at

Jagiellońska 74 and PLN 13 212 thousand for the buildings at Jagiellońska 76.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Changes in investment properties for the period 01.01.2023 – 30.09.2023

Gross carrying amount as at 01.01.2023 47 946

Increase due to: 102

purchase of a property 102

Decrease due to: 7 757

scrapping 864

reclassification to other asset categories 6 893

Gross carrying amount as at 30.09.2023 40 291

Accumulated depreciation as at 01.01.2023 5 386

Increase due to: 1 358

depreciation charge 1 358

Decrease due to: 1 065

scrapping 127

reclassification to other asset categories 938

Accumulated depreciation as at 30.09.2023 5 679

Impairment write-downs as at 01.01.2023 -

Increase -

Decrease -

Impairment write-downs as at 30.09.2023 -

Net carrying amount as at 30.09.2023 34 612

Amounts of contractual liabilities in respect of purchase of investment properties

None.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 6. Inventories

30.09.2023 30.06.2023 31.12.2022

Goods for resale 7 460 8 115 12 697

Other materials 3 3 4

Gross inventories 7 463 8 118 12 701

Inventory write-downs - - -

Net inventories 7 463 8 118 12 701

Changes in inventory write-downs

None.

Note 7. Trade and other receivables

30.09.2023 30.06.2023 31.12.2022

Trade and other receivables, gross 322 047 127 105 223 636

Write-downs 87 814 818

Trade and other receivables 321 960 126 291 222 818

from related entities 2 384 423 1 855

from other entities 319 576 125 868 220 963

Changes in write-downs of receivables

Trade

receivables

Other

receivables

Total

OTHER ENTITIES

Write-downs as at 01.01.2023 86 732 818

Increases, including: 7 - 7

recognition of write-downs of overdue and disputed receivables 7 - 7

Decreases, including: 6 732 738

reversal of write-downs (write-off) - 732 732

reversal of write-downs 6 - 6

Write-downs as at 30.09.2023 87 - 87

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Current and overdue trade receivables as at 30.09.2023

Total Not overdue

Overdue, in days

1 – 60 61 – 90 91 – 180 181 – 360 >360

RELATED ENTITIES

gross receivables 2 382 2 381 1 - - - -

default ratio - 0% 0% 0% 0% 0% 0%

write-down resulting

from the ratio

- - - - - - -

write-down

determined

individually

- - - - - - -

total expected credit

losses

- - - - - - -

Net receivables 2 382 2 381 1 - - - -

Total Not overdue

Overdue, in days

1 – 60 61 – 90 91 – 180 181 – 360 >360

OTHER ENTITIES

gross receivables 285 538 284 764 675 12 - 1 86

default ratio - 0% 0% 0% 0% 0% 0%

write-down resulting

from the ratio

- - - - - - -

write-down

determined

individually

87 - - - - 1 86

total expected credit

losses

87 - - - - 1 86

Net receivables 285 451 284 764 675 12 - - -

Total

gross receivables 287 920 287 145 676 12 - 1 86

impairment write-

downs

87 - - - - 1 86

Net receivables 287 833 287 145 676 12 - - -

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Other receivables

30.09.2023 30.06.2023 31.12.2022

Other gross receivables, including: 34 127 43 466 58 260

tax receivables, other than corporate income tax 24 102 26 074 43 414

prepayments for inventories 8 428 14 142 6 940

prepayments for development projects 633 1 718 1 433

security deposits 468 475 1 071

provisions for sales revenue - prepayments 123 53 137

prepayments for investment properties 54 - -

settlements with employees 51 59 -

prepayments for property, plant and equipment

and intangible assets

30 30 135

settlements with members of the Management Boards 2 - 2

settlements with suppliers of property, plant and equipment items - - 4 160

settlements with payment operators - - 7

other 236 915 961

Write-downs - 732 732

Other receivables, including: 34 127 42 734 57 528

current 33 747 42 359 57 139

non-current 380 375 389

Note 8. Other financial assets

30.09.2023 30.06.2023 31.12.2022

Loans granted 4 236 4 789 739

Bonds 515 170 464 196 475 848

Derivative financial instruments 937 20 534 7 809

Private equity interests in the gaming sector 2 387 2 260 2 556

Other financial assets, including: 522 730 491 779 486 952

current 268 043 249 576 279 515

non-current 254 687 242 203 207 437

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 9. Prepayments and deferred costs

30.09.2023 30.06.2023 31.12.2022

Minimum guarantees, advance payments and prepayments

GOG.COM

59 251 47 706 41 457

Software, licenses 9 804 10 042 6 186

Costs of future marketing services 1 489 1 522 1 597

Fees for pre-emptive rights 1 191 1 218 1 271

Costs of repairs and maintenance 891 974 1 142

Staff relocation costs 555 365 39

Costs of IT security resources 352 451 380

Costs in connection with redevelopment of the car park 260 260 260

Business travel (tickets, hotels, insurance) 177 235 85

Property and personal insurance 132 263 785

Domains, servers 72 125 235

Perpetual usufruct 71 141 -

Transaction costs - 143 -

Other prepayments and deferred costs 644 776 523

Prepayments and deferred costs, including: 74 889 64 221 53 960

current 26 386 21 494 22 886

non-current 48 503 42 727 31 074

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 10. Deferred income tax

Deductible temporary differences underlying the deferred tax asset

31.12.2022*

Differences affecting

the deferred tax

recognized in the

profit or loss

30.09.2023

Provision for other employee benefits 2 382 1 343 3 725

Provision for costs of performance-related

and other remuneration

49 565 (17 995) 31 570

Tax loss 5 467 (4 440) 1 027

Foreign exchange losses 7 573 1 486 9 059

Difference between the carrying amounts

and tax bases of expenditure on development

projects

34 836 (14 184) 20 652

Wages & salaries and social security payable

in future periods

47 3 50

Deferred income in respect of virtual wallet top-

ups and a fringe benefit scheme

3 955 317 4 272

Other provisions 34 167 9 092 43 259

Tax base of non-current assets leased 20 697 (563) 20 134

Research and development relief 318 126 (65 015) 253 111

Prepayments recognized as revenue for tax

purposes

7 523 (3 424) 4 099

Difference between the net carrying amounts

and tax bases of property, plant and equipment

and intangible assets

12 (9) 3

Measurement of forward contracts 892 (892) -

Total deductible differences, including: 485 242 (94 281) 390 961

taxed at 5% 72 663 13 580 86 243

taxed at 19% 411 344 (107 852) 303 492

deferred tax charged abroad 1 235 (9) 1 226

Deferred income tax assets 82 140 (19 814) 62 326

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Taxable temporary differences underlying the deferred tax provision

31.12.2022*

Differences affecting

the deferred tax

recognized in the

profit or loss

30.09.2023

Difference between the net carrying amounts

and tax bases of property, plant and equipment

and intangible assets

17 780 2 726 20 506

Current period revenue invoiced in the

subsequent period/accrued income

132 427 156 980 289 407

Foreign exchange gains 8 722 (3 731) 4 991

Measurement of forward contracts - 937 937

Difference between the carrying amounts

and tax bases of expenditure on

development projects

254 638 134 546 389 184

Carrying amount of non-current assets leased 20 844 (1 060) 19 784

Other 151 (8) 143

Total taxable differences, including: 434 562 290 390 724 952

taxed at 5% 382 911 319 882 702 793

taxed at 19% 50 214 (29 482) 20 732

deferred tax charged abroad 1 437 (10) 1 427

Deferred tax provisions 29 088 10 390 39 478

* restated data

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 assets/provisions

30.09.2023 30.06.2023* 31.12.2022*

Deferred tax assets 62 326 65 483 82 140

Deferred tax provisions 39 478 18 485 29 088

* restated data

Income tax expense recognized in the income statement

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

Current income tax, including: 6 425 14 776 29 944 47 638

withholding tax paid abroad 9 653 6 722 25 614 31 356

Change in deferred tax 24 380 (1 418) 30 439 5 459

Income tax expense recognized in the income statement 30 805 13 358 60 383 53 097

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 11. Share capital

Share capital – structure as at 30.09.2023

Series Number of shares Value of the series/issue at par

Manner of covering share

capital

A - M 99 910 510 99 910 510 Fully paid up

Total 99 910 510 99 910 510 -

As at the date of publication of this report, the Parent Company’s share capital amounted to PLN 99 910 510 and consisted of

99 910 510 ordinary bearer shares with a par value of PLN 1 each, designated as A – M series shares. The total number of votes

resulting from all shares of the Parent Company was 99 910 510.

During the reporting period and after the balance sheet date, there were no changes in the amount of the Parent Company’s share

capital.

Changes in the share capital for the period 01.01.2023 – 30.09.2023

Share capital as at 01.01.2023 100 771

Increase -

Decrease due to: 860

redemption of own shares 860

Share capital as at 30.09.2023 99 911

Note 12. Provision for retirement and similar benefits

30.09.2023 30.06.2023* 31.12.2022*

Provision for retirement and disability bonuses 376 376 376

Provisions for holiday pay 7 146 6 899 4 145

Total, including: 7 522 7 275 4 521

current 7 156 6 909 4 155

non-current 366 366 366

* restated data

Provisions for one-

time retirement and

disability bonuses

Provisions for

holiday pay

Total

As at 01.01.2023* 376 4 145 4 521

Provisions recognized - 7 146 7 146

Provisions released - 4 145 4 145

As at 30.09.2023, including: 376 7 146 7 522

current 10 7 146 7 156

non-current 366 - 366

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 13. Other provisions

30.09.2023 30.06.2023 31.12.2022

Provision for liabilities, including: 64 289 28 200 98 640

provision for costs of the audit and review of

the financial statements

71 73 167

provision for costs of external services 1 104 910 850

provision for costs of performance-related

and other remuneration

31 569 9 254 67 966

provision for other costs 31 545 17 963 29 657

Total, including: 64 289 28 200 98 640

current 48 662 22 030 88 042

non-current 15 627 6 170 10 598

Changes in other provisions

Provision for costs of

performance-related

and other

remuneration

Other provisions Total

As at 01.01.2023 67 966 30 674 98 640

Provisions recorded during the year 31 569 74 271 105 840

Provisions utilized/released 67 966 72 225 140 191

As at 30.09.2023, including: 31 569 32 720 64 289

current 31 569 17 093 48 662

non-current - 15 627 15 627

Note 14. Other liabilities

30.09.2023 30.06.2023 31.12.2022

Taxes (other than corporate income tax), customs duties, social

security and other payables

13 334 9 775 9 547

VAT 8 290 4 309 5 302

Withholding tax 433 504 32

Personal income tax 1 162 1 071 1 944

Social security contributions 3 197 3 764 2 043

PFRON (State Fund for Rehabilitation of Disabled People) 85 91 75

PIT-8AR (personal income tax) settlements 16 36 134

Other 151 - 17

Other liabilities 2 889 3 485 3 317

Liabilities in respect of pre-emptive rights and costs of future

marketing services

2 440 2 500 2 620

Other settlements with employees 133 148 241

Other settlements with members of the Management Board 3 1 32

Prepayments received from foreign customers - - 8

Other liabilities 313 836 416

Total other liabilities 16 223 13 260 12 864

current 13 722 10 760 10 244

non-current 2 501 2 500 2 620

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Current and overdue other liabilities as at 30.09.2023

Total Not overdue

Overdue, in days

1 – 60 61 – 90 91 – 180 181 – 360 >360

To related entities 3 1 2 - - - -

To other entities 16 220 15 887 125 3 1 1 203

Total 16 223 15 888 127 3 1 1 203

Note 15. Deferred income

30.09.2023 30.06.2023 31.12.2022

Subsidies 3 667 4 586 5 511

Sales relating to future periods 6 633 18 991 16 088

GOG wallet 4 832 4 746 4 460

Rental of company phones 44 41 35

Deferred income, including: 15 176 28 364 26 094

current 13 107 25 611 22 425

non-current 2 069 2 753 3 669

Note 16. Information on financial instruments

Fair values and hierarchy of specific classes of financial instruments

The Management Board of the Group has analysed specific classes of financial instruments. Based on the analysis, it was concluded

that the carrying amounts of the instruments did not differ materially from their fair values as at both 30 September 2023,

30 June 2023 and 31 December 2022.

30.09.2023 30.06.2023 31.12.2022*

LEVEL 1

Assets measured at fair value

Assets measured at fair value through

other comprehensive income

234 677 220 483 243 091

bonds issued by foreign governments - EUR 16 327 15 609 25 111

bonds issued by foreign governments - USD 218 350 204 874 217 980

LEVEL 2

Assets measured at fair value through profit or loss

Derivatives 937 20 534 7 809

currency forwards - EUR 116 973 1 249

currency forwards - USD 821 19 561 6 560

Private equity interests in the gaming sector 2 414 2 260 2 556

private equity interests in the gaming sector - SEK 985 919 1 085

Private equity interests in the gaming sector - USD 1 429 1 341 1 471

Liabilities measured at fair value through profit or loss

Derivatives 3 632 227 891

currency forwards - EUR 192 56 72

currency forwards - USD 3 440 171 819

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Financial instruments measured at fair value are classified according to a three-level fair value hierarchy:

Level 1 – quoted prices in active markets for identical assets or liabilities.

Level 2 – fair value based on observable market data.

Level 3 – fair value based on market data that is not observable in the market.

Financial assets – classification and measurement

30.09.2023 30.06.2023 31.12.2022

Financial assets measured at amortized cost 1 072 424 798 895 1 014 332

Other non-current receivables 380 375 389

Trade receivables 287 833 83 557 165 290

Cash and cash equivalents 236 232 149 336 277 827

Bank deposits over 3 months 263 250 317 125 337 330

Treasury bonds and bonds guaranteed by the State Treasury 280 493 243 713 232 757

Loans granted 4 236 4 789 739

Financial assets measured at cost 40 863 43 477 41 607

Shares in non-consolidated subordinated entities 40 863 43 477 41 607

Assets measured at fair value through

other comprehensive income

234 677 220 483 243 091

Bonds issued by foreign governments 234 677 220 483 243 091

Financial assets measured at fair value through profit or loss 3 324 22 794 10 365

Derivative financial instruments 937 20 534 7 809

Private equity interests in the gaming sector 2 387 2 260 2 556

Total financial assets 1 351 288 1 085 649 1 309 395

Financial liabilities – classification and measurement

30.09.2023 30.06.2023 31.12.2022

Financial liabilities measured at amortized cost 97 549 76 327 99 689

Trade payables 67 302 49 870 72 119

Other financial liabilities 30 247 26 457 27 570

Financial liabilities measured at fair value

through profit or loss

3 632 227 891

Derivative financial instruments 3 632 227 891

Total financial liabilities 101 181 76 554 100 580

In accordance with the requirements of IFRS 9 Financial Instruments, the Parent Company has analysed the business model for

managing financial assets and examined the characteristics of contractual cash flows for each component of the bond portfolio,

and concluded that:

 the purpose of investments in domestic and foreign Treasury bonds and domestic 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 bonds to be sold before maturity as part of the

adopted strategy;

 all bonds purchased meet the SPPI test.

As a result of the analysis conducted, purchased bonds were classified into two financial asset management models which differ in

terms of the entity managing the bond portfolio. Polish Treasury bonds and bonds guaranteed by the Polish State Treasury are

measured at amortized cost, because they are held to collect contractual cash flows. Foreign Treasury bonds are measured at fair

value through other comprehensive income, because of the investment mandate which offers the possibility of the portfolio being

managed by an Asset Manager.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

In accordance with the requirements of IFRS 13 Fair Value Measurement, the Group has analysed the valuation of the financial

instruments measured at amortized cost in the consolidated statement of financial position in order to determine their fair values

and their classification in the fair value hierarchy.

Listed debt securities were classified to Level 1. They include State Treasury bonds and bonds guaranteed by the State Treasury

whose fair value was determined on the basis of a market valuation provided by the brokerage office as part of the applicable

agreement for the provision of brokerage services.

30.09.2023 30.06.2023 31.12.2022

LEVEL 1

Fair value of assets measured at amortized cost 278 985 236 096 219 713

Treasury bonds and bonds guaranteed by the State Treasury 278 985 236 096 219 713

Other items of financial assets and financial liabilities measured at amortized cost were classified to Level 3.

With regard to equity interests in other entities, the Group estimates the fair values of the shares held using the method which

consists of forecasting future cash flows generated by the relevant cash generating unit and requires determining a discount rate

to be used to calculate the present value of these cash flows. In justified cases, the Group assumes a historical cost as an acceptable

approximation of the fair value.

The Group did not determine the fair values of receivables, trade payables, cash and cash equivalents, bank deposits over 3 months

and loans granted with variable interest rates, because their carrying amounts are considered by the Group to be a reasonable

approximation of their fair values.

There were no movements between the levels in the fair value hierarchy in the reporting period or in the comparative period.

Note 17. Sales revenue

Sales revenue – geographical structure 2023*

01.07.2023 – 30.09.2023 01.01.2023 – 30.09.2023

in PLN in % in PLN in %

Domestic sales 9 372 2.12% 23 238 3.03%

Export sales, including: 433 310 97.88% 744 454 96.97%

Europe 76 338 17.24% 147 317 19.19%

North America 329 828 74.51% 540 442 70.40%

South America 1 577 0.36% 3 323 0.43%

Asia 22 270 5.03% 46 435 6.05%

Australia 3 042 0.69% 6 449 0.84%

Africa 255 0.05% 488 0.06%

Total 442 682 100% 767 692 100%

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

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%

* The data presented relate 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., and CD PROJEKT Inc. – end customers.

Sales revenue – by type of production

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

Own production 390 534 203 189 628 634 489 057

Third party production 51 693 42 017 138 017 132 828

Other revenue 455 308 1 041 1 622

Total 442 682 245 514 767 692 623 507

Sales revenue – by distribution channel

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

Games - box issues 10 364 1 640 32 306 19 076

Games - digital issues 428 659 194 033 716 880 540 872

Other revenue 3 659 49 841 18 506 63 559

Total 442 682 245 514 767 692 623 507

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 18. Operating expenses

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

Depreciation and amortization of property, plant

and equipment, intangible assets, expenditure on

development projects and investment properties,

including:

3 271 3 425 9 942 10 771

depreciation of leased buildings 244 394 803 1 291

depreciation of leased vehicles 110 115 347 288

Materials and energy used 1 737 964 3 520 2 181

External services, including: 53 072 28 345 106 595 84 019

costs of short-term leases and low-value leases 121 123 363 362

Taxes and fees 704 533 1 645 1 086

Wages & salaries, social insurance and other benefits 56 854 36 723 138 274 107 279

Business travel 1 125 1 078 2 942 1 640

Cost of using company cars 63 55 180 172

Cost of goods for resale and materials sold 38 757 30 598 103 255 94 921

Costs of products and services sold 104 410 48 602 148 101 85 640

Other costs 614 914 1 276 2 411

Total 260 607 151 237 515 730 390 120

Selling expenses 66 140 45 064 152 470 135 697

Total administrative expenses, including: 51 300 26 973 111 904 73 862

cost of research projects 4 602 404 7 875 4 308

Cost of sales 143 167 79 200 251 356 180 561

Total 260 607 151 237 515 730 390 120

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 19. Other operating income and expenses

Other operating income

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

Tax relief for innovative employees 4 635 - 12 353 -

Other sales 1 082 3 296 1 428 3 337

Subsidies 919 1 823 1 843 2 754

Rental income 138 1 696 2 294 5 046

Income from re-invoicing 131 197 553 595

Gains on disposal of non-current assets 48 256 73 265

Release of unused provisions for costs 38 - 178 232

Write-off of past liabilities of GOG.COM - 2 230 - 2 230

Fixed assets and goods for resale received free

of charge

- 306 168 306

Reversal of a write-down of expenditure on

development projects in progress

- - 21 531 -

Refund of overpaid tax on civil law transactions - - 94 -

Payments from enforcement officers - - 27 -

Release of provisions for minimum guarantees - - - 376

Damages received - - - 2

Other 421 15 205 61

Total other operating income 7 412 9 819 40 747 15 204

Other operating expenses

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

Cost of sales of other sales 1 719 3 925 2 214 3 957

Cost of rental 552 994 2 265 2 825

Depreciation of investment properties 413 462 1 341 1 391

Disposal of fixed assets and intangible assets 163 - 3 042 483

Costs relating to re-invoicing 131 197 553 595

VAT written off 73 - 328 -

Donations and charity 41 89 445 1 312

Irrecoverable receivables 16 - 70 -

Impairment write-downs of property, plant

and equipment, intangible assets and expenditure

on development projects

- 911 - 911

Cost of disposal of materials and goods for resale

(destruction)

- 12 171 2 771

Liquidation of investment properties - - 737 -

Other 135 193 390 447

Total other operating expenses 3 243 6 783 11 556 14 692

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 20. Finance income and costs

Finance income

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

Interest income 10 666 9 344 36 443 27 363

on current bank deposits 5 913 5 794 23 249 14 811

on bonds 4 668 3 550 13 007 12 337

on loans 85 - 187 215

Other finance income 49 758 23 875 43 562 41 226

release of write-downs of non-current financial assets 27 271 - 27 271 -

net foreign exchange gains 19 474 15 890 - 11 907

gain on redemption of bonds - 4 929 2 294 22 437

settlement and measurement of derivative financial

instruments

3 013 3 056 13 951 6 880

forward contracts - Management Board - - - 2

other finance income - - 46 -

Total finance income 60 424 33 219 80 005 68 589

Finance costs

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

Interest expense 200 206 847 923

on bonds - 39 18 240

on lease contracts 200 137 594 404

on liabilities to the State Treasury - 30 232 278

on trade payables - - 3 1

Other finance costs 12 794 18 070 9 946 36 590

net foreign exchange losses - - 9 654 -

settlement and measurement of derivative financial

instruments

12 696 17 990 - 36 343

commission and fees on purchase of bonds 71 80 214 247

measurement of private equity interests

in the gaming sector

27 - 78 -

Total finance costs 12 994 18 276 10 793 37 513

Net finance income/expense 47 430 14 943 69 212 31 076

Note 21. Leases of low-value assets and short-term leases

The Group has concluded lease contracts for office equipment (multifunctional photocopiers, kitchen appliances) and residential

premises which potentially meet the recognition criteria for leases under the new IFRS 16. However, the Group considered these

contracts to be short-term leases and leases of low-value assets and decided not to apply the new requirements for leases to these

assets, as permitted by paragraph 5 of the standard. 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 costs of these leases, incurred in the period from 1 July to 30 September 2023, is included in Note 18).

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

As at 30 September 2023, 30 June 2023 and 31 December 2022, future minimum payments in respect of irrevocable short-term

leases and leases of low-value assets were as follows:

30.09.2023 30.06.2023 31.12.2022

Up to 1 year 253 319 467

From 1 year to 5 years 210 199 334

Total 463 518 801

Note 22. Issuance, redemption and repayment of debt and equity securities

Issuance of debt securities

Not applicable.

Issuance of equity securities

Specification 30.09.2023 30.06.2023 31.12.2022

Number of shares in thousands 99 911 99 911 100 771

Par value of shares in PLN 1 1 1

Share capital 99 911 99 911 100 771

Note 23. Dividend paid (or declared) and received

During the period from 1 July to 30 September 2023, the Group companies did not pay or receive any dividends.

Note 24. Transactions with related entities

Terms and conditions of transactions with related entities

The terms and conditions of intra-group transactions were determined on the arm’s length basis. The essence of this principle is

based on the premise that the terms and conditions agreed in transactions between related parties should not differ from those

that would be agreed between independent parties in a comparable situation. Controlled transactions concluded by the related

entities which belong to the CD PROJEKT Group are tested for compliance with the arm’s length basis based on the

recommendations and methods provided for in OECD Guidelines and in the national legislation.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Transactions with related entities after consolidation eliminations

Sales to related entities Purchases from related entities

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

SUBSIDIARIES

Spokko sp. z o.o. - 324 - 1 061 - - - -

CD PROJEKT RED

Vancouver Studio Ltd.

50 4 74 33 3 251 4 342 13 355 12 124

The Molasses Flood LLC 82 2 84 2 9 573 9 737 35 265 20 048

MEMBERS OF THE MANAGEMENT BOARDS OF THE GROUP COMPANIES AND THE SUPERVISORY BOARD

Marcin Iwiński - - - 1 - - - -

Adam Kiciński 1 - 1 - - - - -

Piotr Nielubowicz - - - 2 - - - -

Michał Nowakowski - 2 - 5 - - - -

Adam Badowski 1 1 1 6 - - - -

Piotr Karwowski 2 2 5 6 - - - -

Urszula Jach - Jaki 1 - 2 1 - - - -

Maciej Gołębiewski 1 - 1 1 - - - -

Paweł Zawodny - - 6 7 - - - -

Jeremiah Cohn - - - 1 - - - -

Maciej Nielubowicz 1 - 1 - - - - -

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Receivables from related entities Liabilities to related entities

30.09.2023 30.06.2023 31.12.2022 30.09.2023 30.06.2023 31.12.2022

SUBSIDIARIES

Spokko sp. z o.o. - 2 156 - 246 -

CD PROJEKT RED Vancouver Studio

Ltd.

2 296 563 1 694 1 725 1 730 2 746

The Molasses Flood LLC 4 322 4 789 742 2 565 2 855 2 579

MEMBERS OF THE MANAGEMENT BOARDS OF THE GROUP COMPANIES AND THE SUPERVISORY BOARD

Marcin Iwiński - - - - - 7

Adam Kiciński - - - - - 13

Piotr Nielubowicz - - 2 - - 13

Michał Nowakowski 2 - - - - 4

Adam Badowski - - - 3 1 6

Piotr Karwowski - - - - - 2

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 25. Unpaid loans or defaults on loan agreements in the cases where no

corrective measures were adopted by the balance sheet date

Not applicable.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 26. Changes in contingent liabilities or contingent assets which occurred after the end of the last financial year

Contingent liabilities in respect of guarantees, sureties and collateral

Specification Currency 30.09.2023 30.06.2023 31.12.2022

mBank S.A.

Bill of exchange agreement Framework agreement on financial market transactions PLN 50 000 50 000 50 000

Bill of exchange agreement Bank guarantee securing a rental contract PLN 427 427 427

Mazovian Unit for Implementation of EU Programmes

Contractual commitment

Commitment to incur operating and renovation expenditures on

leased space

PLN - - 20

National Centre for Research and Development

Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0105/16 PLN 7 711 7 711 7 711

Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0110/16 PLN 3 846 3 846 3 846

Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0112/16 PLN 3 692 3 692 3 692

Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0118/16 PLN 1 358 1 358 1 358

Bill of exchange agreement Subsidy agreement POIR.01.02.00-00-0120/16 PLN 1 204 1 204 1 204

Pekao Leasing Sp. z o.o.

Bill of exchange agreement Lease contract 37/1991/21 PLN 202 240 314

Santander Bank Polska S.A. (formerly: BZ WBK S.A.)

Bill of exchange agreement Framework agreement on financial market transactions PLN 23 500 23 500 23 500

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Bank Polska Kasa Opieki Spółka Akcyjna

Bill of exchange agreement Framework agreement on financial market transactions PLN 50 000 50 000 50 000

BNP Paribas Bank Polska S.A.

Bill of exchange agreement Framework agreement on financial market transactions PLN 26 600 26 600 26 600

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 27. Changes in the structure of the Group and Group companies during

the reporting period

 Registration of the merger of the Parent Company with its subsidiary - Spokko sp. z o.o.

On 31 August 2023, the District Court for the Capital City of Warsaw in Warsaw entered the merger-through-acquisition of the Parent

Company, as the surviving company, with its subsidiary Spokko sp. z o.o. with its registered office in Warsaw, as the target company,

in the Register of Businesses. The merger was carried out in accordance with the merger plan announced on 20 April 2023, i.e. by

transferring all of the assets of Spokko sp. z o.o. to the Parent Company, without increasing the share capital of the Parent Company

and without exchanging shares of the target company for shares of the Parent Company due to the fact that the Parent Company

holds 100% of the shares in the target company.

Note 28. Agreements that may result in future changes in the proportions of

shares held by shareholders and bondholders

Incentive Plan for the years 2023-2027

Based on the resolutions of the Parent Company’s General Meeting of 28 July 2020, two new incentive plans for the financial years

2023-2027 were introduced on that date, replacing the Incentive Plan for 202-2025: the Incentive Plan A and Incentive Plan B.

Incentive Plan A

Incentive Plan A is addressed to persons who are not members of the Management Board of the Parent Company. The assumptions

are that the entitlements in this plan will be granted in each of the financial years 2023-2027 (i.e. in five phases). A maximum of

1 500 000 entitlements may be granted under the entire Incentive Plan A. The entitlements will be realized alternatively through: (i)

offering participants to subscribe for warrants entitling them to subscribe for an identical number of shares in the Parent Company,

issued as part of the conditional share capital increase, or (ii) offering participants to purchase from the Parent Company the

Treasury shares acquired by the Parent Company as part of a buy-back carried out for this purpose. Taking up and exercising the

rights from the subscription warrants or, as the case may be, purchasing the Parent Company’s shares by the participant under

Incentive Plan A will be conditional upon meeting the loyalty criterion (understood as participants of Incentive Plan A remaining in

a legal relationship with the Parent Company or its related entity during the vesting period). The price of taking up or acquiring the

Company’s shares as part of executing entitlements under Plan A will correspond to the nominal value of the Parent Company’s

shares. The vesting period will be 3 years.

By the date of publication of this report, 100 444 entitlements were awarded under Incentive Plan A, of which 96 322 remain active.

Assumptions made for the valuation of Incentive Plan A for the years 2023-2027

Date of vesting CDR volatility ratio Risk-free interest rate

Entitlements granted on 26.05.2023 44% 6.2%

Entitlements granted on 27.05.2023 44% 6.2%

Entitlements granted on 29.05.2023 44% 5.9%

Entitlements granted on 07.06.2023 44% 5.8%

Changes in entitlements granted under Incentive Plan A for the years 2023-2027

Specification

01.01.2023 – 30.09.2023

Number of shares

Granted during the period 100 444

Forfeited during the period 4 122

Unrealized as at the end of the period 1 500 000

Granted, unrealized as at the end of the period 96 322

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Incentive Plan B

Incentive Plan B is addressed to both persons who are members of the Parent Company’s Management Board and persons who

are not members of the Management Board. The assumptions are that the entitlements in this plan will be granted in each of the

financial years 2023-2027 (i.e. in five phases). A maximum of 3 500 000 entitlements may be granted under the entire Incentive

Plan B. The entitlements will be realized alternatively through: (i) offering participants to subscribe for warrants entitling them to

subscribe for an identical number of shares in the Parent Company, issued as part of the conditional share capital increase, or (ii)

offering participants to purchase from the Parent Company the Treasury shares acquired by the Parent Company as part of a buy-

back carried out for this purpose. Taking up and exercising the rights from the subscription warrants or, as the case may be,

purchasing the Parent Company’s shares by the eligible persons under Incentive Plan B will be conditional upon the Parent

Company determining that the performance condition (for 70% of the entitlements), the market condition (for 30% of the

entitlements), and in selected cases the individual conditions and, in each case, the loyalty condition (understood as participants of

Incentive Plan A remaining in a legal relationship with the Parent Company or its related entity during the vesting period) have been

met. The base price of subscription for or purchase of the Company’s shares as part of exercising the entitlements under Plan B

will correspond to the price of the Parent Company’s shares at the close of the last trading session preceding the date of the

relevant resolution on the participant’s inclusion in the plan. The plan provides for the possibility to reduce the price of subscription

for or purchase of the shares with a simultaneous proportional reduction in the number of rights to be exercised by the participant.

The base vesting period corresponds to four consecutive financial years starting from the year in which the relevant phase

commenced (with the possibility of being shortened to three financial years for performance-related entitlements in the event of

the four-year performance target being achieved faster over a three-year period).

By the date of publication of this report, 662 000 entitlements were awarded under Incentive Plan B, of which 662 000 remain

active.

Assumptions made for the valuation of Incentive Plan B for the years 2023-2027

Date of vesting

CDR volatility

ratio

WIG volatility ratio

WIG correlation

ratio

Risk-free interest

rate

Entitlements granted on 26.05.2023 44% 21% 43% 6.1%

Changes in entitlements granted under Incentive Plan B for the years 2023-2027

Specification

01.01.2023 – 30.09.2023

Number of shares

Granted during the period 662 000

Unrealized as at the end of the period 3 500 000

Granted, unrealized as at the end of the period 662 000

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 29. Tax settlements

Tax settlements and other areas of activities regulated by the tax law may be subject to inspections by administrative bodies which

are entitled to impose high penalties or sanctions. The lack of reference to established legal regulations in Poland results in

ambiguities and inconsistencies in the binding regulations. Frequent differences of opinion as to the legal interpretation of tax

regulations, both internally within the state bodies and between the state bodies and enterprises, result in areas of uncertainty and

conflict arising. Due to these factors, the tax risk in Poland is considerably higher than that usually existing in countries with more

developed tax systems.

In accordance with a general rule, tax settlements may be subject to inspections within 5 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 2022, item 2474), the Minister of Development and Technology, by decision No. DNP-

4241.27.2023.2 of 23 August 2023, 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 2022, item 2587, as amended,

hereinafter called the “CIT Act”).

Starting from the month following the submission of the CIT-8 tax return, the Parent Company enjoys a relief in respect of an

innovative employee. As part of the relief, it is possible to deduct the research and development relief which the Parent Company

did not deduct from the tax base in the tax return for the previous tax year. As a result of using tax relief in respect of an innovative

employee, the Parent Company reduces tax advances remitted to the tax office in respect of personal income tax and flat-rate

personal income tax for employees carrying out research and development projects for the Parent Company. At the same time, the

amount of the research and development relief reported and not deducted is reduced (the reduction is the product of the personal

income tax liability due and the personal income tax rate).

With effect from 1 January 2019, provisions were introduced into the Act on corporate income tax, granting preferential taxation at

a 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 Parent Company 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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 30. Explanations to the condensed consolidated statement of cash

flows

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

Cash and cash equivalents reported

in the statement of cash flows

236 232 198 689 236 232 198 689

Cash and cash equivalents in the balance sheet 236 232 198 689 236 232 198 689

Depreciation and amortization 3 271 3 425 9 942 10 771

Amortization of intangible assets 437 535 1 580 1 615

Amortization of expenditure on development projects 101 211 359 833

Depreciation of property, plant and equipment 2 730 2 672 7 985 8 297

Depreciation of investment properties 3 7 18 26

Foreign exchange gains/(losses) arise

on the following items:

(14 819) (19 888) 4 024 (24 769)

Foreign exchange gains and losses on measurement

of private equity interests in the gaming sector

(128) - 118 -

Foreign exchange gains/(losses) on measurement

of loans granted as at the balance sheet date

(364) - (140) -

Foreign exchange gains/(losses) on measurement

of leases

(81) - (252) -

Foreign exchange gains/(losses) on measurement

of bonds

(14 246) (19 888) 4 298 (24 769)

Interest and shares in profits comprise: (10 466) (9 168) (35 831) (26 719)

Interest on bank deposits (5 913) (5 794) (23 249) (14 811)

Interest on bonds (4 668) (3 511) (12 989) (12 097)

Interest accrued on loans granted (85) - (187) (215)

Interest on lease contracts 200 137 594 404

(Gains)/losses on investing activities arise

on the following items:

(14 501) 13 796 (57 543) 15 282

Proceeds from sale of property, plant and equipment (127) (260) (152) (274)

Net carrying amount of property, plant and equipment 79 4 79 9

Net carrying amount of non-current assets scrapped 163 - 296 200

Net carrying amount of intangible assets liquidated

and expenditure on research and development

projects

- - 2 746 283

Net carrying amount of investment properties

liquidated

- - 737 -

Impairment write-downs of property, plant

and equipment, intangible assets and expenditure

on development projects

- 911 - 911

Release of write-downs of shares in subsidiaries (27 271) - (27 271) -

Reversal of impairment write-downs of property, plant

and equipment, intangible assets and expenditure on

development projects

- - (21 531) -

Settlement and measurement of derivative financial

instruments

12 696 17 990 (10 301) 36 343

Measurement of private equity interests

in the gaming sector

- - 51 -

Disclosure of property, plant and equipment

and intangible assets

- - (4) -

Commission and fees on purchase of bonds 71 80 214 247

Proceeds from redemption of bonds - (34 672) (36 711) (192 373)

Value of bonds purchased - 29 743 34 417 169 936

Settlement of lease contracts expired (112) - (113) -

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

Changes in provisions result from the following items: 36 413 13 066 (11 526) (36 231)

Increase/(Decrease) in provisions for liabilities 36 089 19 458 (34 351) (29 545)

Increase/(Decrease) in provisions for employee

benefits

247 (397) 3 001 1 301

Increase/(Decrease) in provision for the costs of

performance-related and other remuneration

recognized under expenditure on development

projects

77 (5 995) 19 824 (7 987)

Changes in inventories result from the following items: 655 644 5 238 1 394

(Increase)/Decrease in inventories 655 644 5 238 1 394

Changes in receivables result from the following items: (205 052) (87 658) (126 129) (15 016)

(Increase)/Decrease in current receivables

in the balance sheet

(198 161) (80 029) (112 546) 41 775

(Increase)/Decrease in non-current receivables

in the balance sheet

(5) (53) 9 (101)

(Increase)/Decrease in prepayments for investment

properties

54 - 54 (79)

Income tax settled against withholding tax 5 - 14 914 27 961

Withholding tax paid abroad (9 653) (6 720) (25 612) (31 353)

Adjustment for current income tax 2 488 (1 133) (1 554) (26 751)

(Increase)/Decrease in prepayments for development

projects

(1 085) 211 (800) (26 575)

(Increase)/Decrease in prepayments for property,

plant and equipment and intangible assets

- 66 (105) 107

(Increase)/Decrease in receivables in respect of

the sale of property, plant and equipment

and intangible assets

1 305 - (489) -

Changes in current liabilities, excluding loans and

borrowings, result from the following items:

17 197 4 762 1 768 12 285

Increase/(Decrease) in current liabilities

in the balance sheet

26 302 (82 424) 1 353 7 994

Adjustment for current income tax (147) (6 468) 1 970 17 978

Increase/(Decrease) in other current financial liabilities (5 757) (8 867) (4 657) (12 789)

Increase/(Decrease) in liabilities in respect of security

deposits

61 - 61 -

Increase/(Decrease) in liabilities resulting from

purchase of property, plant and equipment

(3 308) 1 788 2 455 (933)

Increase/(Decrease) in liabilities resulting from

purchase of intangible assets

46 (6) 586 25

Increase/(Decrease) in liabilities resulting from

dividends from retained earnings

- 100 739 - -

Increase/(Decrease) in liabilities resulting from

the purchase of investment properties

- - - 10

Changes in other assets and liabilities result from the

following items:

(23 916) (11 201) (32 028) (45 874)

(Increase)/Decrease in prepayments and accruals

in the balance sheet

(10 668) (12 722) (20 929) (32 489)

Increase/(Decrease) in deferred income

in the balance sheet

(13 188) 1 581 (10 918) (13 205)

Adjustment for prepayments and deferred costs

with the corresponding entry in liabilities

(60) (60) (181) (180)

* restated data

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

The value of “Other adjustments” comprises: 5 304 1 539 19 002 6 869

Costs of the incentive plan 3 311 967 13 451 3 285

Measurement of derivative financial instruments (1 164) (714) (1 829) (651)

Amortization and depreciation written off, reported

under cost of sales, consortium settlements and other

operating expenses

83 - 82 1 046

Amortization and depreciation reported under cost of

sales and other operating expenses

492 806 2 036 2 470

Accounting for shares in the acquired entity 32 854 - 32 854 -

Retained earnings of the acquired entity (26 979) - (26 979) -

Net profit or loss of the acquired entity (3 653) - - -

Deferred tax asset of the acquired entity (233) - (233) -

Net amount of property, plant and equipment

and intangible assets of the acquired entity

378 - (228) -

Foreign exchange differences on translation 215 480 (52) 781

Other adjustments - - (100) (62)

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 31. Cash flows and non-monetary changes resulting from changes in liabilities in financing activities

01.07.2023 Cash flows

Non-monetary changes

30.09.2023

Takeover of fixed assets

leased

Foreign exchange

differences

Interest accrued

Adoption of resolution

on the payment of

dividend

Lease liabilities 20 307 (679) 2 519 57 200 - 22 404

Total 20 307 (679) 2 519 57 200 - 22 404

01.07.2022 Cash flows

Non-monetary changes

30.09.2022

Takeover of fixed assets

leased

Foreign exchange

differences

Interest accrued

Adoption of resolution

on the payment of

dividend

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

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

01.01.2023 Cash flows

Non-monetary changes

30.09.2023

Takeover of fixed assets

leased

Foreign exchange

differences

Interest accrued

Adoption of resolution

on the payment of

dividend

Lease liabilities 20 761 (2 484) 3 711 (177) 593 - 22 404

Liabilities to

shareholders in

respect of dividend

payment

- (99 911) - - - 99 911 -

Total 20 761 (102 395) 3 711 (177) 593 99 911 22 404

01.01.2022 Cash flows

Non-monetary changes

30.09.2022

Takeover of fixed assets

leased

Foreign exchange

differences

Interest accrued

Adoption of resolution

on the payment of

dividend

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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Note 32. Post balance sheet events

On 5 October 2023, in the current report no. 38/2023, the Management Board of the Parent Company informed that, based on

reports from digital distribution platforms, by the end of the first week after the launch, that is up to and including 3 October 2023,

gamers had purchased over 3 million copies of the Cyberpunk 2077: Phantom Liberty expansion across all hardware platforms

available. At the same time, the Management Board informed that according to initial data the total value of direct expenses incurred

on the production of the Cyberpunk 2077: Phantom Liberty expansion amounted to approximately PLN 275 million and the costs

of the global marketing campaign related to the launch of the expansion directly organized by the Parent Company amounted to

approximately PLN 95 million.

On 5 October 2023, in the current report no. 39/2023, the Management Board of the Parent Company informed that the Company

had received a notification from Mr. Adam Kiciński of his intention to stand as a future candidate for the position of Member of the

Supervisory Board of the Parent Company from 2025 and, as a consequence, of his intention to resign, in the future, from the

position of Member of the Management Board as of the end of 2024. The full contents of Mr. Adam Kiciński’s letter are attached as

an appendix to the said report. In connection with the said decision, the Management Board has decided that as of 1 January 2024

the internal segregation of duties with regard to the individual areas of the Company’s business activities among the Members of

the Management Board will be updated and, as a consequence, the roles and designations of the functions of the Members of the

Management Board will be changed as follows: (i) Mr. Adam Kiciński will perform the role of the Chief Strategy Officer (CSO); (ii) the

role of the Chief Executive Officer (CEO) will be performed jointly by: Mr. Adam Badowski, currently performing the role of the Chief

Creative Officer, who has been with the Company for 20 years, and Mr. Michał Nowakowski, currently performing the role of the

Chief Commercial Officer, who has been with the Company for 18 years. Mr. Adam Badowski and Mr. Michał Nowakowski will use

the same designation of Joint Chief Executive Officer (Joint CEO). The Company informed further on the adoption of the new

functional designations in the

current report no. 37/2023.

On 23 October 2023, the share capital of CD PROJEKT RED Inc. was increased by USD 1 100 thousand i.e. up to USD 7 120

thousand, by increasing the value of the existing 10 thousand shares by USD 110 each. The increased value of the existing shares

was paid up in full by a cash contribution of USD 1 100 thousand, made by the Parent Company. The capital increase was intended

to enable finalizing the last stage of the process of acquisition of shares in The Molasses Flood LLC (payment of the third tranche).

On 27 October 2023, CD PROJEKT RED Inc. concluded an agreement based on which it acquired additional shares in The Molasses

Flood LLC from one of its shareholders at that time, thus becoming the owner of 81.82% (i.e. 450 000) of the shares in that company.

On 28 November 2023, in the current report no. 42/2023, the Management Board of the Parent Company informed that it has

received a notification to the effect that the U.S. District Court for the Central District of California had issued an order regarding

final approval of the settlement, i.e. Order re: motion for final approval of class action settlement. The final approval of class action

settlement confirms the final terms of the settlement reached in the U.S. class action lawsuit (as the Parent Company informed in

detail in the current report no. 45/2021 and the current report no. 5/2022

) and ends the legal proceedings related to the U.S. class

action lawsuit filed against the Company and other defendants.

Additional information

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts 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 material proceedings were 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 by 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, the part relating to the amount of damages awarded to the Company.

Appeals were also filed by the defendants’ counsels – against the entire decision and by the prosecutor – against a part of the

judgment. On 26 October 2017, the Court of Appeals overturned the judgment of the Court of First Instance in the case in its entirety

and referred the case to the Court of First Instance for retrial in its entirety. The Regional Court in Warsaw is currently examining

the case under Case number XVIII K 316/17. The Parent Company is acting as an auxiliary prosecutor in the case.

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 of the filing of

civil class actions before the United States District Court for the District of Central California. The lawsuits were filed 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 sought 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 S.A. The contents of all of

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 were 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 contents 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 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., Polish

Branch, 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, just 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.

On 4 January 2023, the Company received information that the United States District Court for the District of Central California had

issued an Order for preliminary approval of the settlement document. The order approves the terms of the settlement relating

specifically to the plaintiffs’ complete withdrawal of any claims against the Company and members of its Management Board, and

the payment of USD 1 850 000 to the plaintiffs’ class by the Company and its insurer, i.e. Colonnade Insurance S.A. Branch in

Poland.

On 28 November 2023, the Company received a notification to the effect that the U.S. District Court for the Central District of

California had issued an order regarding final approval of the settlement (Order re: motion for final approval of class action

settlement). The final approval of class action settlement confirms the final terms of the settlement and ends the legal proceedings

related to the U.S. class action lawsuit filed against the Company and other defendants.

Litigation involving subsidiaries

Proceedings of GOG sp. z o.o. before the Voivodship Administrative Court in Kraków

On 19 August 2022, the Head of the Małopolski Customs and Tax Office in Kraków issued a decision against the subsidiary GOG

sp. z o.o., determining the corporate income tax liability for 2016. The Management Board of GOG sp. z o.o. paid the liability resulting

from the decision received which amounted to PLN 2 638 thousand, including interest due as at the payment date. Irrespective of

the above, GOG sp. z o.o. disagreed with the assessment by the tax authorities and appealed against the decision on 5 September

2022.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

On 22 May 2023, the Head of the Małopolski Customs and Tax Office in Kraków, which also acted as the appeal authority in this

case, issued a decision upholding the contested decision. The decision of the appeal authority was served on GOG sp. z o.o. on

5 June 2023.

On 4 July 2023, the Management Board of GOG sp. z o.o., disagreeing with the position of the tax authority, filed a complaint

against the decision issued with the Voivodeship Administrative Court in Kraków. On 3 October 2023, a hearing before the

Voivodeship Administrative Court in Kraków was held, as a result of which the said Court issued a judgment overruling the decisions

of the Head of the Małopolski Customs and Tax Office of 19 August 2022 and 22 May 2023. As at the date of publication of this

report, the judgment has the status of a non-final decision.

Shareholding structure

Shareholders holding directly or indirectly through subsidiaries at least 5% of the total number of

votes at the Parent Company’s General Shareholders’ Meeting as at the date of publication of the

quarterly report

The Parent Company’s share capital amounts to PLN 99 910 510 and consists of 99 910 510 shares with a nominal value of PLN 1

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 the 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 12.89%

Michal Kicinski

9 989 363 9.99%

Piotr Nielubowicz 6 858 717 6.86%

According to the latest statement submitted to the Company - current report no. 41/2023 of 13 November 2023.

Changes in the shareholding structure of the Parent Company

In the reporting period presented, the Parent Company did not receive any notifications concerning changes in the number of

voting rights or the Parent Company’s shares held.

After the balance sheet date, on 13 November 2023, the Parent Company received a notification from a shareholder, Mr. Michał

Kiciński, according to which the number of shares in the Parent Company held by Mr. Michał Kiciński had decreased from 9 995 024

(i.e. 10.00% of the total number of votes) to 9 989 363 (i.e. 9.99% of the total number of votes). The status resulting from the said

notification is presented in the table above.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Parent Company’s shares held by the members of the Management Board

and the Supervisory Board

Changes in the number of shares held by the Members of the Management Board and the

Supervisory Board*

Name and surname Position As at 01.01.2023 As at 30.09.2023 As at 28.11.2023

Adam Kiciński Member of the Board 4 046 001 4 046 001 4 046 001

Piotr Nielubowicz Member of the Board 6 858 717 6 858 717 6 858 717

Adam Badowski Member of the Board 692 640 692 640 692 640

Michał Nowakowski Member of the Board 530 290 530 290 530 290

Piotr Karwowski Member of the Board 108 728 108 728 108 728

Paweł Zawodny Member of the Board 18 508 18 508 18 508

Marcin Iwiński

Chair of the

Supervisory Board

12 873 520 12 873 520 12 873 520

Katarzyna Szwarc

Deputy Chair of the

Supervisory Board

10 10 10

Maciej Nielubowicz

Secretary of the

Supervisory Board

51 51 51

* based on statements and notifications submitted to the Company

Reference to published estimates

The Group did not publish any 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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed separate income statement

Note

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

Sales revenue 381 921 203 081 625 242 494 049

Sales of products 380 646 201 452 617 254 485 205

Sales of services 70 359 356 1 495

Sales of goods for resale and materials 1 205 1 270 7 632 7 349

Cost of sales of products, services, goods for

resale and materials

107 298 49 835 157 441 90 842

Costs of products and services sold 106 104 48 617 149 521 85 397

Cost of goods for resale and materials sold 1 194 1 218 7 920 5 445

Gross profit/(loss) on sales 274 623 153 246 467 801 403 207

Selling expenses 52 873 35 335 121 164 105 969

Administrative expenses 47 963 24 012 102 596 64 929

Other operating income 7 578 7 881 41 307 13 499

Other operating expenses 3 591 6 874 12 094 15 467

(Impairment)/reversal of impairment

of financial instruments

(5) (9) (1) (17)

Operating profit/(loss) 177 769 94 897 273 253 230 324

Finance income 60 161 33 955 78 880 70 305

Finance costs 12 984 18 740 6 316 40 114

Profit/(loss) before tax 224 946 110 112 345 817 260 515

Income tax A 29 933 13 054 59 437 52 383

Net profit/(loss) 195 013 97 058 286 380 208 132

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

Basic for the reporting period 1.95 0.96 2.85 2.07

Diluted for the reporting period 1.95 0.96 2.85 2.07

* restated data

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed separate statement of

comprehensive income

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

Net profit/(loss) 195 013 97 058 286 380 208 132

Other comprehensive income subject to reclassification

to gains or losses after specific conditions have been

met

(479) (6 298) (142) (14 289)

Measurement of derivative financial instruments -

fair value through other comprehensive income,

taking into account the tax effect

(479) (6 298) (142) (14 289)

Other comprehensive income not subject to

reclassification to gains or losses

- - - -

Total comprehensive income 194 534 90 760 286 238 193 843

* restated data

Interim condensed separate statement of financial

position

Note 30.09.2023 30.06.2023* 31.12.2022*

NON-CURRENT ASSETS 1 228 171 1 265 852 1 096 803

Property, plant and equipment 167 301 159 479 143 439

Intangible assets 69 250 70 414 70 324

Expenditure on development projects 572 915 597 658 473 504

Investment properties 34 612 37 429 42 560

Goodwill C 49 167 49 168 49 168

Investments in subordinated entities 52 698 57 910 53 566

Prepayments and deferred costs 5 390 6 100 5 314

Other financial assets G 254 687 242 203 207 437

Deferred tax assets A 21 778 45 123 51 108

Other receivables F,G 373 368 383

CURRENT ASSETS 1 072 936 838 024 1 089 378

Inventories 7 463 8 118 9 886

Trade receivables F,G 296 920 83 188 164 708

Current income tax receivable 14 780 10 716 -

Other receivables F 31 725 40 376 54 677

Prepayments and deferred costs 9 522 9 362 6 189

Other financial assets G 267 106 249 576 279 515

Bank deposits over 3 months G 263 250 317 125 337 330

Cash and cash equivalents G 182 170 119 563 237 073

TOTAL ASSETS 2 301 107 2 103 876 2 186 181

* restated data

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Note 30.09.2023 30.06.2023* 31.12.2022*

EQUITY 2 171 290 2 003 419 1 999 827

Share capital 11,22** 99 911 99 911 100 771

Supplementary capital 1 681 466 1 681 466 1 539 437

Share premium 116 700 116 700 116 700

Treasury shares - - (99 993)

Other reserves 17 451 14 504 3 777

Retained earnings (30 618) (3 638) (1 336)

Net profit (loss) for the period 286 380 94 476 340 471

NON-CURRENT LIABILITIES 38 137 29 968 36 106

Other financial liabilities G 17 601 18 206 18 883

Other liabilities 2 501 2 500 2 620

Deferred income 2 069 2 753 3 666

Provision for retirement and similar benefits 339 339 339

Other provisions B 15 627 6 170 10 598

CURRENT LIABILITIES 91 680 70 489 150 248

Other financial liabilities G 5 848 2 085 1 788

Trade payables G 23 179 18 945 39 587

Current income tax liabilities - - 2 116

Other liabilities 4 774 5 452 4 350

Deferred income 7 052 18 479 15 032

Provision for retirement and similar benefits 7 155 6 908 4 154

Other provisions B 43 672 18 620 83 221

TOTAL EQUITY AND LIABILITIES 2 301 107 2 103 876 2 186 181

* restated data

** 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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Interim condensed separate statement of changes in equity

Share capital

Supplementary

capital

Share premium Treasury shares Other reserves

Retained

earnings

Net profit (loss)

for the period

Total equity

01.01.2023 – 30.09.2023

Equity

as at 01.01.2023

100 771 1 539 437 116 700 (99 993) 3 777 341 073 - 2 001 765

Correction of errors - - - - - (1 938) - (1 938)

Equity, as adjusted 100 771 1 539 437 116 700 (99 993) 3 777 339 135 - 1 999 827

Costs of the incentive

plan

- - - - 13 816 - - 13 816

Appropriation of the net

profit/offset of loss

- 241 162 - - - (241 162) - -

Payment of dividend - - - - - (99 911) - (99 911)

Redemption of Treasury

(860) (99 133) - 99 993 - - - -

Retained earnings

of the acquired entity

- - - - - (28 680) - (28 680)

Total comprehensive

income

- - - - (142) - 286 380 286 238

Equity

as at 30.09.2023

99 911 1 681 466 116 700 - 17 451 (30 618) 286 380 2 171 290

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements

Share capital

Supplementary

capital

Share premium Treasury shares 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

Correction of errors - - - - - (1 336) - (1 336)

Equity, as adjusted 100 739 1 366 952 115 909 - 49 515 234 598 - 1 867 713

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) - 208 132 193 843

Equity

as at 30.09.2022

100 739 1 502 147 115 909 - 38 511 (1 336) 208 132 1 964 102

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Interim condensed separate statement of cash flows

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

OPERATING ACTIVITIES

Net profit/(loss) 195 013 97 058 286 380 208 132

Total adjustments: (126 936) (20 335) (96 315) 17 499

Depreciation and amortization of property, plant

and equipment, intangible assets, expenditure on

development projects and investment properties

2 903 2 650 8 738 8 150

Amortization of development projects recognized

as cost of goods sold

93 938 48 327 137 155 84 464

Foreign exchange (gains)/losses (14 819) (19 888) 4 024 (24 747)

Interest and shares in profits (10 247) (8 663) (35 465) (25 629)

(Gains)/losses on investing activities (14 498) 14 299 (60 459) 18 182

Increase/(Decrease) in provisions 34 833 15 393 (11 696) (33 443)

(Increase)/Decrease in inventories 655 (60) 2 423 2 732

(Increase)/Decrease in receivables (215 772) (87 792) (135 714) (14 747)

Increase/(Decrease) in liabilities, excluding loans

and borrowings

1 652 11 849 (12 937) 10 526

Change in other assets and liabilities (11 621) 1 718 (13 166) (14 863)

Other adjustments 6 040 1 832 20 782 6 874

Cash from operating activities 68 077 76 723 190 065 225 631

Income tax expense 20 280 6 334 33 825 21 030

Withholding tax paid abroad 9 653 6 720 25 612 31 353

Income tax (paid)/refunded - - (21 158) (34 188)

Net cash from operating activities 98 010 89 777 228 344 243 826

restated data

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

INVESTING ACTIVITIES

Inflows 144 600 91 538 564 987 553 707

Sale of intangible assets and property, plant

and equipment

127 256 149 262

Repayment of loans granted 1 002 - 1 002 13 220

Sale of shares in a subsidiary - - - 76

Expiry of bank deposits over 3 months 124 680 - 454 650 265 000

Redemption of bonds - 84 853 56 411 257 943

Interest on bonds 1 637 1 147 8 116 3 250

Interest received on deposits 5 684 5 282 22 873 13 679

Inflows from execution of forward contracts 11 470 - 21 743 -

Other inflows from investing activities - - 43 277

Outflows 179 409 546 554 746 203 879 370

Acquisition of intangible assets and property, plant

and equipment

9 275 10 206 37 559 35 371

Expenditure on development projects 64 681 55 831 226 267 145 542

Expenditure on intangible assets 345 - 724 -

Acquisition of investment properties and capitalization

of expenditure

57 - 155 145

Loans granted - - 4 215 4 000

Purchase of shares in a subsidiary - - 440 -

Contribution to the capital of a subsidiary - 2 808 3 053 32 720

Purchase of bonds and cost of their purchase 34 246 57 380 93 220 225 500

Placement of bank deposits over 3 months 70 805 410 544 380 570 410 544

Outflows from execution of forward contracts - 9 785 - 25 548

Net cash from investing activities (34 809) (455 016) (181 216) (325 663)

FINANCING ACTIVITIES

Inflows 1 10 31 30

Payment of finance lease liabilities 1 10 30 30

Interest paid - - 1 -

Outflows 595 101 367 102 062 103 014

Dividends and other payments to shareholders - 100 739 99 911 100 739

Payment of lease liabilities 405 499 1 566 1 901

Interest paid 190 129 585 374

Net cash from financing activities (594) (101 357) (102 031) (102 984)

Net increase/(decrease) in cash and cash equivalents 62 607 (466 596) (54 903) (184 821)

Change in cash and cash equivalents

in the balance sheet

62 607 (466 596) (54 903) (184 821)

Cash and cash equivalents as at the beginning of the

period

119 563 627 570 237 073 345 795

Cash and cash equivalents as at the end

of the period

182 170 160 974 182 170 160 974

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts 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

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

The item “Other adjustments” comprises: 6 040 1 832 20 782 6 874

Costs of the incentive plan 3 055 963 12 594 3 112

Amortization and depreciation written off, reported

under cost of sales, consortium settlements and other

operating expenses

125 - 125 1 046

Amortization and depreciation reported under cost of

sales and other operating expenses

494 869 1 994 2 716

Accounting for shares in the acquired entity 32 854 - 35 754 -

Retained earnings of the acquired entity (26 979) - (28 680) -

Net profit or loss of the acquired entity (3 109) - - -

Deferred tax asset of the acquired entity (233) - (233) -

Net amount of property, plant and equipment

and intangible assets of the acquired entity

(167) - (772) -

Assumption of comparability of the financial

statements and changes in 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 2022, 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 2022.

Changes in accounting policies

The changes in accounting policies relating to the Company are the same as those described in the section Assumption of

comparability of the financial statements and changes in the accounting policies of the consolidated financial statements for the

period from 1 July to 30 September 2023.

Presentation changes and correction of errors

In these interim condensed separate financial statements for the period from 1 July to 30 September 2023, certain adjustments in

selected financial data were made. In order to ensure comparability of the financial data in the reporting period, the data for the

period from 1 July to 30 September 2022, from 1 January to 30 September 2022 and as at 31 December 2022 and 30 June 2023

were adjusted. The data are presented after the following corrections:

 In the statement of financial position as at 31 December 2022, provisions for holiday pay were entered. Consequently, the

following items changed:

- Expenditure on development projects – an increase of PLN 1 967 thousand;

- Deferred income tax assets – an increase of PLN 240 thousand;

- Retained earnings – a decrease of PLN 1 336 thousand;

- Net profit (loss) for the period – a decrease of PLN 602 thousand

;

- Provision for retirement and similar benefits – an increase of PLN 4 145 thousand.

The change affected the Net profit or loss and Equity.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

 In the statement of financial position as at 30 June 2023, provisions for holiday pay were entered. Consequently, the following

items changed:

- Expenditure on development projects – an increase of PLN 3 524 thousand;

- Deferred income tax assets – an increase of PLN 386 thousand;

- Retained earnings – a decrease of PLN 1 937 thousand;

- Net profit (loss) for the period – a decrease of PLN 1 052 thousand

;

- Provision for retirement and similar benefits – an increase of PLN 6 899 thousand.

The change affected the Net profit or loss and Equity.

 In the statement of cash flows for the period from 1 July to 30 September 2022, provisions for holiday pay were recognized.

Consequently, the following items changed:

- Net profit/(loss) – an increase of PLN 185 thousand;

- Increase/(Decrease) in provisions – a decrease of PLN 209 thousand;

- Income tax expense – an increase of PLN 24 thousand.

 In the statement of cash flows for the period from 1 January to 30 September 2022, provisions for holiday pay were recognized.

Consequently, the following items changed:

- Net profit/(loss) – a decrease of PLN 601 thousand;

- Increase/(Decrease) in provisions – an increase of PLN 683 thousand;

- Income tax expense – a decrease of PLN 82 thousand.

 In the income statement for the period from 1 July to 30 September 2022, provisions for holiday pay were recognized.

Consequently, the following items changed:

- Administrative expenses – a decrease of PLN 209 thousand;

- Income tax – an increase of PLN 24 thousand.

The change affected the Net profit or loss and Equity.

 In the income statement for the period from 1 January to 30 September 2022, provisions for holiday pay were recognized.

Consequently, the following items changed:

- Administrative expenses – an increase of PLN 683 thousand;

- Income tax – a decrease of PLN 82 thousand.

The change affected the Net profit or loss and Equity.

In these interim condensed separate financial statements for the period from 1 July to 30 September 2023, 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 for the period from 1 July to 30 September 2022 and from 1 January to 30 September 2022 was

changed. The data are presented after the following adjustment:

 In the income statement for the period from 1 July 2022 to 30 September 2022, the presentation of the provisions for the

variable component of the performance-related remuneration of the Management Board Members was changed.

Consequently, the following items changed:

- Selling expenses – a decrease of PLN 9 315 thousand;

- Administrative expenses – an increase of PLN 9 315 thousand.

The change did not affect the Net profit or loss or Equity.

 In the income statement for the period from 1 January to 30 September 2022, the presentation of the provisions for the variable

component of the performance-related remuneration of the Management Board Members was changed. Consequently, the

following items changed:

- Selling expenses – a decrease of PLN 20 023 thousand;

- Administrative expenses – an increase of PLN 20 023 thousand.

The change did not affect the Net profit or loss or Equity.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Notes to the separate financial statements of

CD PROJEKT S.A.

A. Deferred tax

Deductible temporary differences underlying the deferred tax asset

31.12.2022*

Differences affecting

the deferred tax

recognized in the

profit or loss

30.09.2023

Provision for other employee benefits 2 353 1 343 3 696

Provision for costs of performance-related

and other remuneration

48 719 (17 597) 31 122

Foreign exchange losses 7 118 (351) 6 767

Difference between the carrying amount

and tax base of expenditure on development

projects

34 848 (14 184) 20 664

Wages & salaries and social security payable

in future periods

47 - 47

Other provisions 33 282 8 871 42 153

Tax value of non-current assets leased 20 671 (575) 20 096

Research and development relief 317 927 (65 015) 252 912

Prepayments recognized as revenue for tax

purposes

7 523 (3 424) 4 099

Total deductible differences, including: 472 488 (90 932) 381 556

taxed at 5% 72 656 13 580 86 236

taxed at 19% 399 832 (104 512) 295 320

Deferred income tax assets 79 601 (19 178) 60 423

* restated data

Taxable temporary differences underlying the deferred tax provision

31.12.2022*

Differences affecting

the deferred tax

recognized in the

profit or loss

30.09.2023

Difference between the net carrying amounts

and tax bases of property, plant and equipment

and intangible assets

16 358 2 720 19 078

Current period revenue invoiced in

the subsequent period/accrued income

132 887 156 519 289 406

Foreign exchange gains 8 417 (3 938) 4 479

Difference between the carrying amount

and tax base of expenditure on development

projects

253 594 134 895 388 489

Book value of non-current assets leased 20 849 (1 060) 19 789

Other 7 (7) -

Total taxable differences, including: 432 112 289 129 721 241

taxed at 5% 382 910 319 882 702 792

taxed at 19% 49 202 (30 753) 18 449

Deferred tax provisions 28 493 10 152 38 645

* restated data

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts 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 Company relied on forecasts of

which tax base will give rise to the realization of the temporary differences recognized.

Net deferred tax assets/provisions

30.09.2023 30.06.2023* 31.12.2022*

Deferred tax assets 60 423 62 890 79 601

Deferred tax provisions 38 645 17 767 28 493

* restated data

Income tax expense recognized in the income statement

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022*

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022*

Current income tax, including: 6 355 14 775 29 874 47 563

withholding tax paid abroad 9 653 6 720 25 612 31 353

Change in deferred tax 23 578 (1 721) 29 563 4 820

Income tax expense recognized in the income statement 29 933 13 054 59 437 52 383

* restated data

B. Other provisions

30.09.2023 30.06.2023 31.12.2022

Provision for liabilities, including: 47 662 24 790 93 819

provision for costs of the audit and review of the financial

statements

71 73 137

provision for costs of performance-related and other remuneration 31 123 9 254 67 121

provision for other costs 16 468 15 463 26 561

Total, including: 47 662 24 790 93 819

current 43 672 18 620 83 221

non-current 3 990 6 170 10 598

Changes in other provisions

Provision for costs of

performance-related

and other

remuneration

Other provisions Total

As at 01.01.2023 67 121 26 698 93 819

Provisions recorded during the year 31 123 70 634 101 757

Provisions utilized/released 67 121 69 156 136 277

As at 30.09.2023, including: 31 123 28 176 59 299

current 31 123 12 549 43 672

non-current - 15 627 15 627

C. Goodwill

During the period from 1 July to 30 September 2023, there were no changes in goodwill.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

D. Business combinations

Business combinations of jointly controlled entities are not covered directly in the International Financial Reporting Standards,

therefore, when accounting for such transactions, the Company uses a method consistent with the pooling of interests method,

which assumes that:

 assets and liabilities of combining entities are measured at the carrying amounts derived from the Company’s consolidated

financial statements. This means that goodwill previously recognized in the consolidated financial statements and all other

intangible assets recognized as part of accounting for the combination are moved to separate financial statements;

 transaction costs relating to the business combination are recognized in the income statement (finance costs);

 mutual balances of receivables/payables are eliminated;

 any difference between the amount paid or transferred and net assets acquired (at amounts derived from the consolidated

financial statements) is reflected in the equity of the acquiring company (the amount embedded in equity is not a component

of the supplementary capital and, therefore, is not subject to distribution);

 the income statement presents the results of the combined entities from the moment when the combination occurred, while

the data for prior periods of the year in which the combination took place are recognized in equity as retained earnings, and

the data for the year preceding the business combination are not restated.

During the reporting period, a business combination involving the Group’s business entities was registered – on 31 August 2023,

the District Court for the Capital City of Warsaw in Warsaw entered the merger-through-acquisition of the Parent Company, as the

surviving company, with its subsidiary Spokko sp. z o.o. with its registered office in Warsaw, as the target company, in the Register

of Businesses. The merger was carried out in accordance with the merger plan announced on 20 April 2023, i.e. by transferring all

of the assets of Spokko sp. z o.o. to the Parent Company, without increasing the share capital of the Parent Company and without

exchanging shares of the target company for shares of the Parent Company due to the fact that the Parent Company holds 100%

of the shares in the target company. The Parent Company informed of the registration of the merger in its

current report

no. 36/2023.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

Income statement for the period from 01.01.2023 to 31.08.2023

CD PROJEKT S.A. Spokko sp. z o.o. Merger adjustments

CD PROJEKT S.A. after

merger

Sales revenue 292 992 1 528 (1 698) 292 822

Sales of products 285 463 15 - 285 478

Sales of services 470 1 513 (1 698) 285

Sales of goods for resale and materials 7 059 - - 7 059

Cost of sales of products, services, goods for resale and materials 62 897 1 376 (38) 64 235

Costs of products and services sold 55 505 1 376 (38) 56 843

Cost of goods for resale and materials sold 7 392 - - 7 392

Gross profit/(loss) on sales 230 095 152 (1 660) 228 587

Selling expenses 86 439 1 449 (250) 87 638

Administrative expenses 69 332 1 493 (1 146) 69 679

Other operating income 38 237 5 (56) 38 186

Other operating expenses 10 117 5 (15) 10 107

(Impairment)/reversal of impairment

of financial instruments

4 - - 4

Operating profit/(loss) 102 448 (2 790) (305) 99 353

Finance income 121 377 167 - 121 544

Finance costs 38 216 2 - 38 218

Profit/(loss) before tax 185 609 (2 625) (305) 182 679

Income tax 35 348 245 - 35 593

Net profit/(loss) 150 261 (2 870) (305) 147 086

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

100

Statement of financial position as at 31 August 2023

CD PROJEKT S.A. Spokko sp. z o.o. Merger adjustments

CD PROJEKT S.A. after

merger

NON-CURRENT ASSETS 1 330 857 228 (33 153) 1 297 932

Property, plant and equipment 162 282 201 - 162 483

Intangible assets 70 306 26 - 70 332

Expenditure on development projects 624 898 - (299) 624 599

Investment properties 37 151 - - 37 151

Goodwill 49 167 - - 49 167

Investments in subordinated entities 85 434 - (32 854) 52 580

Prepayments and deferred costs 2 506 - - 2 506

Other financial assets 241 863 - - 241 863

Deferred tax assets 56 869 1 - 56 870

Other receivables 381 - - 381

CURRENT ASSETS 1 082 679 2 859 (229) 1 085 309

Inventories 7 917 - - 7 917

Trade receivables 41 041 229 (229) 41 041

Current income tax receivable 8 366 - - 8 366

Other receivables 45 618 - - 45 618

Prepayments and deferred costs 13 886 37 - 13 923

Other financial assets 503 902 - - 503 902

Bank deposits over 3 months 300 940 - - 300 940

Cash and cash equivalents 161 009 2 593 - 163 602

TOTAL ASSETS 2 413 536 3 087 (33 382) 2 383 241

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

101

CD PROJEKT S.A. Spokko sp. z o.o. Merger adjustments

CD PROJEKT S.A. after

merger

EQUITY 2 063 869 3 001 (33 153) 2 033 717

Equity of the shareholders of CD PROJEKT S.A. 2 063 869 3 001 (33 153) 2 033 717

Share capital 99 911 54 (54) 99 911

Supplementary capital 1 681 466 32 684 (32 684) 1 681 466

Share premium 116 700 - - 116 700

Other reserves 17 234 - - 17 234

Retained earnings (1 703) (26 867) (110) (28 680)

Net profit (loss) for the period 150 261 (2 870) (305) 147 086

Non-controlling interests - - - -

NON-CURRENT LIABILITIES 42 411 19 - 42 430

Other financial liabilities 18 070 11 - 18 081

Other liabilities 2 524 - - 2 524

Deferred tax provision 14 220 8 - 14 228

Deferred income 1 088 - - 1 088

Provision for retirement and similar benefits 339 - - 339

Other provisions 6 170 - - 6 170

CURRENT LIABILITIES 307 256 67 (229) 307 094

Other financial liabilities 233 538 16 - 233 554

Trade payables 11 527 4 - 11 531

Other liabilities 4 745 32 (45) 4 732

Deferred income 26 827 - - 26 827

Provision for retirement and similar benefits 9 - - 9

Other provisions 30 610 15 (184) 30 441

TOTAL EQUITY AND LIABILITIES 2 413 536 3 087 (33 382) 2 383 241

No other business combinations of the Group entities took place in the reporting period.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

102

E. Dividend paid (or declared) and received

During the period from 1 July to 30 September 2023, the Group companies did not pay or receive any dividends.

F. Trade and other receivables

30.09.2023 30.06.2023 31.12.2022

Trade and other receivables, gross 329 105 124 746 220 586

Write-downs 87 814 818

Trade and other receivables 329 018 123 932 219 768

from related entities 22 593 4 978 5 535

from other entities 306 425 118 954 214 233

Changes in write-downs of receivables

Trade

receivables

Other

receivables

Total

OTHER ENTITIES

Write-downs as at 01.01.2023 86 732 818

Increases, including: 7 - 7

recognition of write-downs of overdue and disputed receivables 7 - 7

Decreases, including: 6 732 738

reversal of write-downs (write-off) - 732 732

reversal of write-downs 6 - 6

Write-downs as at 30.09.2023 87 - 87

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

103

Current and overdue trade receivables as at 30.09.2023

Total Not overdue

Overdue, in days

1 – 60 61 – 90 91 – 180 181 – 360 >360

RELATED ENTITIES

gross receivables 22 591 22 590 1 - - - -

default ratio - 0% 0% 0% 0% 0% 0%

write-down resulting

from the ratio

- - - - - - -

write-down

determined

individually

- - - - - - -

total expected credit

losses

- - - - - - -

Net receivables 22 591 22 590 1 - - - -

Total Not overdue

Overdue, in days

1 – 60 61 – 90 91 – 180 181 – 360 >360

OTHER ENTITIES

gross receivables 274 415 273 801 517 11 - 1 85

default ratio - 0% 0% 0% 0% 0% 0%

write-down resulting

from the ratio

- - - - - - -

write-down

determined

individually

86 - - - - 1 85

total expected credit

losses

86 - - - - 1 85

Net receivables 274 329 273 801 517 11 - - -

Total

gross receivables 297 006 296 391 518 11 - 1 85

impairment write-

downs

86 - - - - 1 85

Net receivables 296 920 296 391 518 11 - - -

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

104

Other receivables

30.09.2023 30.06.2023 31.12.2022

Other gross receivables, including: 32 098 41 476 55 792

tax receivables, other than corporate income tax 22 773 24 451 41 766

prepayments for inventories 8 138 14 041 6 826

prepayments for development projects 633 1 718 1 433

security deposits 422 432 687

prepayments for investment properties 54 - -

prepayments for property, plant and equipment

and intangible assets

30 30 135

settlements with employees 28 40 -

settlements with members of the Management Boards 2 - 2

settlements with suppliers of property, plant and equipment items - - 4 160

settlements with payment operators - - 7

other 18 764 776

Write-downs - 732 732

Other receivables, including: 32 098 40 744 55 060

current 31 725 40 376 54 677

non-current 373 368 383

G. Information on financial instruments

Fair values and hierarchy of specific classes of financial instruments

The Management Board of the Company has analysed specific classes of financial instruments. Based on the analysis, it was

concluded that the carrying amounts of the instruments do not differ materially from their fair values as at both 30 September 2023,

30 June 2023 and 31 December 2022.

30.09.2023 30.06.2023 31.12.2022

LEVEL 1

Assets measured at fair value

Assets measured at fair value through

other comprehensive income

234 677 220 483 243 091

bonds issued by foreign governments - EUR 16 327 15 609 25 111

bonds issued by foreign governments - USD 218 350 204 874 217 980

LEVEL 2

Assets measured at fair value through profit or loss

Derivatives - 20 534 7 809

currency forwards - EUR - 973 1 249

currency forwards - USD - 19 561 6 560

Private equity interests in the gaming sector 2 414 2 260 2 556

private equity interests in the gaming sector - SEK 985 919 1 085

Private equity interests in the gaming sector - USD 1 429 1 341 1 471

Liabilities measured at fair value through profit or loss

Derivatives 3 632 - -

currency forwards - EUR 192 - -

currency forwards - USD 3 440 - -

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

105

Financial instruments measured at fair value are classified according to a three-level fair value hierarchy:

Level 1 - quoted prices in active markets for identical assets or liabilities.

Level 2 - fair value based on observable market data.

Level 3 - fair value based on market data that is not observable in the market.

Financial assets – classification and measurement

30.09.2023 30.06.2023 31.12.2022

Financial assets measured at amortized cost 1 027 442 768 746 972 990

Other non-current receivables 373 368 383

Trade receivables 296 920 83 188 164 708

Cash and cash equivalents 182 170 119 563 237 073

Bank deposits over 3 months 263 250 317 125 337 330

Treasury bonds and bonds guaranteed by the State Treasury 280 493 243 713 232 757

Loans granted 4 236 4 789 739

Financial assets measured at cost 52 698 57 910 53 566

Investments in subordinated entities 52 698 57 910 53 566

Assets measured at fair value through

other comprehensive income

234 677 220 483 243 091

Bonds issued by foreign governments 234 677 220 483 243 091

Financial assets measured at fair value through profit or loss 2 387 22 794 10 365

Derivative financial instruments - 20 534 7 809

Private equity interests in the gaming sector 2 387 2 260 2 556

Total financial assets 1 317 204 1 069 933 1 280 012

Financial liabilities – classification and measurement

30.09.2023 30.06.2023 31.12.2022

Financial liabilities measured at amortized cost 42 996 39 236 60 258

Trade payables 23 179 18 945 39 587

Other financial liabilities 19 817 20 291 20 671

Financial liabilities measured at fair value

through profit or loss

3 632 - -

Derivative financial instruments 3 632 - -

Total financial liabilities 46 628 39 236 60 258

In accordance with the requirements of IFRS 9 Financial Instruments, the Company has analysed the business model for managing

financial assets and examined the characteristics of contractual cash flows for each component of the bond portfolio, and concluded

that:

 the purpose of investments in domestic and foreign Treasury bonds and domestic 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 bonds to be sold before maturity as part of the

adopted strategy;

 all bonds purchased meet the SPPI test.

As a result of the analysis conducted, purchased bonds were classified into two financial asset management models which differ in

terms of the entity managing the bond portfolio. Polish Treasury bonds and bonds guaranteed by the Polish State Treasury are

measured at amortized cost, because they are held to collect contractual cash flows. Foreign Treasury bonds are measured at fair

value through other comprehensive income, because of the investment mandate which offers 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 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

106

In accordance with the requirements of IFRS 13 Fair Value Measurement, the Company has analysed the valuation of the financial

instruments measured at amortized cost in the separate statement of financial position in order to determine their fair values and

their classification in the fair value hierarchy.

Listed debt securities were classified to Level 1. They include State Treasury bonds and bonds guaranteed by the State Treasury

whose fair value was determined on the basis of a market valuation provided by the brokerage office as part of the applicable

agreement for the provision of brokerage services.

30.09.2023 30.06.2023 31.12.2022

LEVEL 1

Fair value of assets measured at amortized cost 278 985 236 096 219 713

Treasury bonds and bonds guaranteed by the State Treasury 278 985 236 096 219 713

Other items of financial assets and financial liabilities measured at amortized cost were classified to Level 3.

With regard to equity interests in other entities, the Company estimates the fair values of the shares held using the method which

consists of forecasting future cash flows generated by the relevant cash generating unit and requires determining a discount rate

to be used to calculate the present value of these cash flows. In justified cases, the Company assumes a historical cost as an

acceptable approximation of the fair value.

The Company did not determine the fair values of receivables, trade payables, cash and cash equivalents, bank deposits over

3 months and loans granted with variable interest rates, because their carrying amounts are considered by the Company to be

a reasonable approximation of their fair values.

There were no movements between the levels in the fair value hierarchy in the reporting period or in the comparative period.

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

107

H. Transactions with related entities

Sales to related entities Purchases from related entities

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

01.07.2023 –

30.09.2023

01.07.2022 –

30.09.2022

01.01.2023 –

30.09.2023

01.01.2022 –

30.09.2022

SUBSIDIARIES

GOG sp. z o.o. 23 313 3 692 27 330 10 148 386 731 764 2 234

CD PROJEKT RED Inc. 14 100 201 271 6 560 3 538 14 449 11 762

Spokko sp. z o.o. - 324 - 1 061 - - - -

CD PROJEKT RED STORE

sp. z o.o.

- 268 - 1 003 - 43 - 113

CD PROJEKT RED Vancouver

Studio Ltd.

6 4 29 33 3 251 4 342 13 355 12 124

The Molasses Flood LLC 1 2 2 2 9 488 9 737 35 178 20 048

MANAGEMENT BOARD OF THE COMPANY AND SUPERVISORY BOARD MEMBERS

Marcin Iwiński - - - 1 - - - -

Adam Kiciński 1 - 1 - - - - -

Piotr Nielubowicz - - - 1 - - - -

Michał Nowakowski - 2 - 3 - - - -

Adam Badowski 1 1 1 6 - - - -

Paweł Zawodny - - 6 7 - - - -

Jeremiah Cohn - - - 1 - - - -

Maciej Nielubowicz 1 - 1 - - - - -

Interim condensed separate financial statements of CD PROJEKT S.A. for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

108

Receivables from related entities Liabilities to related entities

30.09.2023 30.06.2023 31.12.2022 30.09.2023 30.06.2023 31.12.2022

SUBSIDIARIES

GOG sp. z o.o. 20 326 4 394 2 798 88 4 2 610

CD PROJEKT RED Inc. 14 2 909 43 1 230 1 249 1 185

Spokko sp. z o.o. - 2 156 - 246 -

CD PROJEKT RED STORE sp. z o.o. - - 839 - - 19

CD PROJEKT RED Vancouver Studio

Ltd.

2 250 563 1 694 1 725 1 730 2 746

The Molasses Flood LLC 4 237 4 789 742 2 496 2 855 2 579

MANAGEMENT BOARD OF THE COMPANY AND SUPERVISORY BOARD MEMBERS

Marcin Iwiński - - - - - 7

Adam Kiciński - - - - - 13

Piotr Nielubowicz - - 2 - - 13

Michał Nowakowski 2 - - - - 4

Adam Badowski - - - 3 1 6

Piotr Karwowski - - - - - 2

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

109

Statement by 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 have been prepared in accordance with the accounting

policies applicable in the CD PROJEKT Group and that they reflect in a true, fair and clear manner the Group’s financial position and

its results of operations.

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

Reporting Standards (IFRS) endorsed by the European Union, published and effective as at 1 January 2023, and to the extent not

governed by the said standards, in accordance with the Accounting Act of 29 September 1994 and the implementing legislation

issued on the basis thereof and to the extent required by the Regulation of the Minister of Finance of 19 February 2009 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.

On the entity authorized to review the fairness of preparation of the interim condensed consolidated

financial statements

On 9 March 2022, the Supervisory Board of the Parent Company selected Grant Thornton Polska Prosta spółka akcyjna with its

registered office in Poznań, as recommended by the Audit Committee, as auditor to carry out the review of the semi-annual financial

statements and the audit of the annual financial statements of the Company and its Group for 2022 and 2023. Grant Thornton

Polska Prosta spółka akcyjna has been entered on the list of entities authorized to audit financial statements by the National

Chamber of Statutory Auditors, with the reference number 4055.

Interim condensed consolidated financial statements of the CD PROJEKT Group for the period from 1 July to 30 September 2023

(all amounts in PLN thousand, unless stated otherwise)

The attached notes are an integral part of these financial statements.

110

Approval of the financial statements

This report for the period from 1 July to 30 September 2023 was signed and approved for publication by the Management Board

of CD PROJEKT S.A. on 28 November 2023.

Warsaw, 28 November 2023

Adam Kiciński Piotr Nielubowicz Adam Badowski

Member of the Board Member of the Board Member of the Board

Michał Nowakowski Piotr Karwowski Paweł Zawodny

Member of the Board Member of the Board Member of the Board

Jeremiah Cohn Krystyna Cybulska

Member of the Board Chief Accountant

111

112