Management Board Report on Activities of the PCF Group S.A. 2021

PCF Group achieved significant financial growth in 2021, with sales revenue rising 74% to 180.3 million PLN and net profit increasing 150% to 61.3 million PLN.

The company’s revenue model is heavily concentrated, with 99% of income derived from work-for-hire AAA partnerships and over 80% of total revenue coming from only two major publishers, Square Enix and Take-Two Interactive.

As of year-end 2021, the self-published title *Outriders* had not yet reached the profitability threshold required to trigger royalty payments to the Group.

The Group is pursuing a dual-track strategy of co-developing major titles like *Project Gemini* and *Project Dagger* while simultaneously building internal self-publishing capabilities for its own intellectual property.

The company underwent rapid scaling in 2021, expanding its workforce from 281 to 495 employees and establishing a physical presence in the United States and Canada.

Financial liquidity is supported by 100.3 million PLN in net proceeds from share offerings and a 4.8% effective tax rate achieved through IP Box relief.

Corporate governance remains highly centralized with 70.65% of voting rights held by the CEO and core shareholders, and the company currently deviates from GPW 'Best Practice' standards regarding ESG and diversity policies.