Cd Projekt Sa Unsp/Adr

Good day and welcome to the CD Projekt Group financial results for FY 2020 conference call. Today's conference is being recorded. At this time, I will turn the conference over to Mr. Adam Kuczynski. Please go ahead, sir.

Thank you very much. Good evening, everyone. Welcome to the teleconference dedicated to the CD Projekt Group annual results for 2020. My name is Adam Kicinski, and I will run this call together with Piotr Nielubowicz and Michał Nowakowski. The presentation is available on our web page, 3dproject.com. So, let's get started. Please jump to slide three. Beyond any doubt, a long-awaited launch of Cyberpunk 2077 was for us the most important event that took place in 2020. and come to think in our history. It's a tough task to summarize the project with just a handful of slides, given that we all poured years of work and our hearts into it. Cyberpunk launched on the 10th of December on PC, Xbox One and PlayStation 4 and Stadia. The game is also playable on the next-gen consoles thanks to backward compatibility. Let's move on to slide four. Cyberpunk 2077 turned out to be a huge project in every possible way, the most ambitious one that we ever worked on, and also the most challenging, taking into account its scope and complexity. With regard to its scale, over 500 developers from CD Projekt RED representing 37 nationalities worked on the game during the most intense period. In total, there were over 5,000 people involved in the project, including the studio's employees, business partners, actors, translators, and musicians. Working in such a diverse environment was a great pleasure. It was a challenge as well, taking into account that most of us spent the last nine months before the release working from home because of COVID. Using this opportunity, I would like to thank all the people involved in Cyberpunk, especially my wonderful colleagues from CD Projekt RED for the great dedication and passion they put into the project. Let's go to the next slide, so number five. We strongly believe that to reach audiences around the world and to win them over, we should give players the opportunity to experience the game in their mother tongues. That's why we are proud that we've managed to make Cyberpunk available in 18 language versions, including 11 full voiceovers recorded by 2,000 actors. Please move on to slide six. The launch of Cyberpunk 2077 was fueled by a huge global marketing campaign that included various channels such as TV, outdoor radio, printed media, and online, depending on the region. Cyberpunk related advertising and other promotional content was released in 34 language versions in 55 countries. We achieved great results. Our global marketing campaign generated over 3 billion ad impressions between November and December last year. On the next slide, so number seven. You can see that the scope of the project was naturally reflected in the size of its overall budget of 1.2 billion zlotys. Fifty-five percent of that was spent on direct development costs plus the studio's overhead expenses allocated to the project. The rest is the total marketing and communication budget covered by both CD Projekt and our physical distribution partners. Let's move onto the next slide, so number eight. The hard work that our talented team put into the development of Cyberpunk as well as into the marketing campaign and the game's launch resulted in our sales figures in the release window. As you can see, by the end of 2020, the total estimated number of copies sold to gamers reached 13.7 million. Please go to slides nine, 10, and 11. Digital distribution accounted for 73% of total Cyberpunk sales in 2020, which clearly reflects the current shift towards digital, also reinforced by the last year's lockdowns. Platform-wise, 56 went to PC owners and Stadia users, with PCs accounting for the vast majority of that part. 28% of total Cyberpunk sales went to PlayStation users with Xbox consoles accounting for 70%. The above breakdown was to some extent influenced by the suspension of Cyberpunk availability on PlayStation Store that happened eight days after the launch. Finally, let me say a few words about the geographical breakdown of Cyberpunk sales. We are satisfied with our presence in North America and Europe, which are our key markets. We are also happy with 12% share for Asia. Let's move on. Having summarized the project and its results, I must say that from the creative point of view, we can be proud of the core strengths of Cyberpunk. A beautiful, engaging city, a gripping and exciting story, and multi-layered characters. From the business standpoint, with the Cyberpunk launch we managed to introduce a new IP to the market and to the minds of gamers around the globe. Now with the Witcher franchise, we've got two strong pillars on which to build the future of the project. But of course, as we all know, not everything went as planned. It has been a huge lesson for us that we shall never forget. However, However, now is the time to look ahead and move forward. Let's go to slide 13. Recently, we've published the CIDER Project Group Strategy Update. A fundamental aspect of that is the transformation that we've called . This involves shifting to an agile work model, empowering the CTO, and devoting more attention to the well-being and comfort of our team. We are also consciously changing the way we communicate and manage our projects. On the production capabilities side, a big milestone will be the start of parallel AAA content development in 2022. Please move on to the next slide, so number 14. One of our priorities for this year is continuing to improve Cyberpunk 2077.

We strongly believe that the game will prove to be successful in the long run.