Cd Projekt Sa Unsp/Adr

Ladies and gentlemen, thank you for standing by.

Welcome and thank you for joining the CT Project Group Q1 2022 results conference. Throughout today's recorded presentation, all participants will be in a listen-only mode. The presentation will be followed by a question and answer session. If you would like to ask a question, you may press star followed by one on your touchtone telephone. Please press the star key followed by zero for operator assistance. I would now like to turn the conference over to Adam Kiciński, President of the Board and Joint CEO. Please go ahead.

Good afternoon. Welcome to call on CD Projekt Group's financial results. Today, we'll briefly sum up the first quarter of 2022. My name is Adam Kiciński and I'm Joint CEO. I'll run this presentation together with Piotr Nielubowicz, our CFO. The webcast of the presentation along with the audio feed are also streamed as I speak. You can find them on our corporate website cdprojekt.com and on our IR YouTube channel. Okay, let's start from Cytotank. On the 15th of February, we released the next-gen update together with a big patch 1.5. The next-gen update enriches the game with native next-gen features, making Cyberpunk an amazing next-gen experience. At the same time, patch 1.5, which brings many improvements, was released across all platforms. The impact of the next-gen update and patch is definitely positive, both on game sales and its perception among players. On slide 3, you can see the sales of Cyberpunk for major platforms in Q1. The quarter is divided into halves as we launch the update in the middle of quarter. The material impact on sales and boost on consoles are clear. Although the transition is already visible, we believe that there are still many more console players to be reached. And this is our goal with our next large update 1.6. planned for this year and then an expansion planned for the next one. Of course, those are to be released on PC as well. Moving on to slide 4, I would like to remind you about another important event of Q1. In March, we signed a strategic long-term partnership with Epic Games. It enables us to use Unreal technology in our future games. Strengthening our technological core and de-risking the whole process fits perfectly into our Red 2.0 transformation. Already at this early stage, we can see an improvement in terms of efficiency. I mean the development of the creative layer of the game. Right now, we are working with the EPYX programmers to make sure that the engine is properly tuned and scalable to our needs. This is important as our strategy is to continue creating powerful open-world RPGs. Additionally, we are also developing our own in-house pipelines and tool sets like, for example, narrative design tools. So, our next Witcher game is being developed on Unreal 5. Please go to slide 5. The initial research phase of this project started last year, and in Q1 we began the pre-production. This means that we started capitalizing development expenditures, as pre-production is the first phase of development. For now, there are over 100 developers involved in the project, and we are really happy with the progress. Talking about developers' involvement in ongoing projects, please move to the next slide. As you can see, Cyberpunk expansion is our most intense project at the moment. Of course, headcount-wise. At the same time, we moved part of the team responsible for servicing Cyberpunk to new projects. And there is one new thing, a small team finishing The Witcher 3 Next-Gen Edition. This game is scheduled to be released in the fourth quarter, this year of course. Let's move on. Now, slide eight. We plan two releases in the second half of 2022. The first is the anime series, Cyberpunk Edgerunners, which we've created with the Japanese studio Trigger. It will be aired on Netflix, and we believe it will add even more recognition to our newest IP. The second one is the next-gen version of The Witcher 3. Of course, this upgrade will be free for everyone who has already bought the game. Also, in the second half of the year, we'll be launching the marketing campaign for the Cyberpunk expansion. So, stay tuned and look forward to some extra news from Night City. Now, let's sum up the financials. Piotr, the floor is yours. As always.