Mid-Year Consolidated Report for Period 3 and 9 Months Completed 30 September 2021

PCF Group demonstrated robust financial growth and strategic expansion during the first nine months of 2021, characterized by a significant increase in scale and a transition toward a more diversified business model. Consolidated sales revenues rose to 131.8 million PLN, up from 79.3 million PLN in the prior year, while net profit more than doubled to 46.4 million PLN. This performance was underpinned by a strong cash position of 149.8 million PLN, largely bolstered by 131.6 million PLN in net proceeds from Series B and D share issuances. These capital increases drove total equity to 241.6 million PLN, providing the necessary liquidity for international expansion and studio acquisitions.

The Group’s revenue profile remained heavily reliant on the work-for-hire segment, which accounted for over 90% of total income through partnerships with major publishers like Square Enix and Take-Two Interactive. Despite the April 2021 launch of Outriders, the Group did not record royalty income through the third quarter, as sales had not yet recouped the publisher's development and promotion costs. Strategically, the Group is shifting toward a self-publishing model and expanding its development pipeline with projects such as Gemini and Dagger. This evolution is supported by the acquisition of Game On Creative in Canada and the establishment of People Can Fly Chicago, reflecting a growing global footprint across Poland, the United States, and Canada.

Operational costs increased to 92.1 million PLN due to higher headcount and public offering expenses, yet the Group maintained a stable financial outlook. Key corporate developments included a dividend distribution of 5.6 million PLN and a strategic investment agreement with Square Enix involving subscription warrants. By the end of September 2021, the Group had successfully integrated new entities and secured its financial foundation through share capital increases, positioning itself to pursue a goal of annual game premieres starting in 2024.