Cd Projekt Sa Unsp/Adr

Good afternoon, good evening, ladies and gentlemen. Thank you for standing by. Welcome and thank you for joining CD Projekt Group H1 2022 Financial Results Investor Conference. Through our today 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 telephone. Please press the start key followed by zero for operator assessment. It is my pleasure and I would now like to turn the conference over to Mr. Adam Kicinski, president of board and joint CEO. Please go ahead, sir.

Thank you very much. Good afternoon. Welcome to CD Projekt Group's 2022 half year call. I'll start with a short recap of the highlights for the period. Then, I'll move on to recent announcements. In the second part, Piotr Nierubowicz will cover the financials. Michał Nowakowski will join us for the Q&A session after the presentation. The webcast of the presentation, as well as the audio feed, are streamed live on our corporate website and our YouTube channel. Let's kick off with a summary of the key production milestones. In Q1, two separate CD Projekt Red teams were already working on two AAA projects. One team continued development of the expansion for Cyberpunk 2077. The other started pre-production of the next Witcher game. On top of that, we continued working on improving Cyberpunk. In February, we released patch 1.5 along with the next-gen version of the game. The positive response we received proved that we are heading in the right direction. Following the next-gen patch, we continued working on the 1.6 update, which came out yesterday. More on that later on. Back in March, we announced a strategic partnership with Epic Games. Our future productions will now rely on Unreal Engine 5 and its potential next versions. We had also used this opportunity to announce work on the new Witcher Saga game that I've already referred to. As production of the game began, at the end of Q1, the corresponding development costs started being capitalized. Now let's move on to the recent project announcements. We are super excited that Cyberpunk Adrana's anime series is coming to Netflix on Tuesday, next week. We've produced it in collaboration with Trigger the acclaimed Japanese anime studio. So the project was responsible for creating the story while Trigger adopted it to anime format. The first impressions of those who had the opportunity to watch the series during the recent PAX West are very encouraging. We believe the series will broaden the interest in the cyberpunk world and bring new players to the game. Indeed, this format provides a perfect match for the Cyberpunk universe. Now let's move to slide 4 and focus on patch 1.6 called the Adranes update. It brings anticipated features to the game. New weapons, wardrobes, cyberwar customization and the Adranes content, to name just a few. With this new update, we also rolled out a set of modding tools to Cyberpunk called Red Mod. Thanks to this, it's finally possible to modify practically every system and any aspect of the game. So it opens countless possibilities. Another thing we added is a performance mode allowing users of Xbox Series S to play the game at 60 FPS. This has been one of the most highly requested features by our community and we are very happy to introduce it. Moving forward, we decided to focus our attention and resources on the new gen versions of Cyberpunk, so we can further develop and upgrade the game on PC, Stadia, PlayStation 5, and Xbox Series X and S. Of course, the game will continue to operate on previous gen consoles and will keep providing technical support. Let's move to slide five and recap basic facts of yesterday's announced expansion. We decided to develop one major expansion to Cyberpunk 2077 titled Phantom Liberty. To provide the best possible experience and great new features, the expansion will come to next-gen and PC only. The release is planned for the next year. Now let's move to slide six, presenting the current allocation of our developers. As you can see, the largest team is working on Phantom Liberty. And the second project is on the new Witcher game. You can also see that the share of developers working on the Murasa's Lab project has grown significantly since the end of 2021. At the same time, the GWENT team was adjusted to the scope of the game operations. And a small portion of the team continues to work on the next-gen version of The Witcher 3. Speaking of which, moving to slide seven, I can confirm that this game is on track to launch in fourth quarter this year.

Stay tuned.