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PCF Group S.A. has officially disclosed the commencement of negotiations regarding a production and publishing agreement with Krafton Inc., a Seoul-based publisher. This disclosure follows the formal execution of a Master Services Agreement on September 10, 2024. The company had previously delayed the announcement of these negotiations, which began on July 11, 2024, to protect its legitimate business interests and prevent potential interference from competitors during the sensitive negotiation phase.

The partnership centers on the development of a new game mode for an existing Krafton title, utilizing a work-for-hire model. This collaboration aligns with the strategic objectives outlined by PCF Group in early 2023, which prioritize securing high-quality work-for-hire opportunities with reputable industry partners. The agreement is structured as a framework, with specific operational details, project timelines, and compensation terms to be defined in subsequent statements of work.

Management justified the initial delay in public disclosure by citing the uncertainty of the negotiation outcomes and the risk that premature release could lead to market misinterpretation of the company’s valuation. Throughout the delay period, the company maintained strict confidentiality protocols, including the maintenance of an insider list as required by regulatory standards. The disclosure confirms that the terms of the agreement are consistent with standard industry practices for similar development projects.

PCF Group S.A. has entered into a formal production and publishing agreement with the South Korean firm Krafton Inc. as of September 10, 2024. This partnership centers on the development of a new gameplay mode, currently identified by the codename Project Echo, intended for an existing video game title owned by Krafton. The collaboration is structured as a work-for-hire arrangement, wherein the developer provides services and production expertise in exchange for agreed-upon compensation from the publisher.

The agreement functions as a master services framework, establishing the foundational legal and operational terms for the partnership. Specific project parameters, including detailed service descriptions, production timelines, and precise financial remuneration, will be defined through subsequent individual statements of work. The terms governing this engagement align with standard industry practices for international production and publishing contracts, ensuring a conventional approach to project management and intellectual property rights.

This strategic move directly supports the long-term objectives outlined in the company’s updated corporate strategy from January 2023. By securing this contract, the developer continues to execute its stated goal of pursuing high-value collaborations with reputable global partners within the work-for-hire business model. This development reinforces the company’s commitment to diversifying its project portfolio while leveraging its technical capabilities to support established titles in the global gaming market.

PCF Group S.A. has officially terminated development of Project Red, a title previously intended for either external publishing or self-publishing. This strategic decision stems from the company’s inability to secure an external publishing partner and a lack of sufficient capital to sustain self-publishing efforts. Furthermore, the company has prioritized the allocation of its development resources toward a newly acquired project, designated as Project Echo, which necessitates the transfer of the team previously assigned to Project Red.

The cancellation of Project Red carries significant financial implications for the company’s 2024 fiscal reporting. As of June 30, 2024, the company will record a 100% impairment charge on all capitalized expenditures related to the project. This accounting action will result in an estimated reduction of 8.85 million PLN in the company’s standalone financial results and fixed assets, while the consolidated financial results and fixed assets for the group will decrease by approximately 7.72 million PLN.

These adjustments are classified as one-time, non-cash events and will not impact the company’s EBITDA. While these figures represent the current assessment of the financial impact, they remain subject to final auditor review and may be adjusted in the upcoming semi-annual financial statements. This shift in development focus reflects a broader realignment of the company’s portfolio, prioritizing projects with secured external funding over those requiring internal capital investment.

PCF Group S.A. has officially suspended all development and publishing activities related to Project Victoria, a title previously slated for an early access release in 2026. This decision follows the conclusion of a strategic review and stems directly from the company’s inability to secure the necessary capital to fund the project’s continued production and self-publishing requirements. The suspension is indefinite, as the company continues to seek external financing options that could potentially facilitate a future resumption of the project.

The operational impact of this decision involves significant workforce restructuring within the dedicated development team. A portion of the staff will be placed on temporary layoff, a status that maintains the employment relationship for a legally defined period without the requirement for work or compensation, while the remainder of the team faces permanent redundancy. Furthermore, the established production and publishing schedule for the title has been formally abandoned.

From a financial perspective, the company has identified the suspension as a trigger for potential impairment of capitalized development costs. In accordance with International Accounting Standard 36, management will conduct formal impairment testing based on financial data as of December 31, 2024. The results of these tests will be incorporated into the company’s annual financial statements for 2024. Future decisions regarding the project, including the possibility of permanent cancellation or eventual reactivation, remain contingent upon the success of ongoing efforts to secure adequate funding.

PCF Group S.A. has officially announced a strategic shift away from the virtual reality (VR) gaming publishing sector. This decision follows a comprehensive internal analysis of the group’s current market position and broader industry trends. The primary catalyst for this withdrawal is a significant decline in investment from major VR platform holders, which has diminished the commercial viability and growth prospects of the VR segment. Consequently, the company will cease all business development and competency building related to VR publishing, effectively narrowing its operational focus.

The transition concludes with the finalization of Project Bison, the last VR title to be published by the company. Under revised terms with its subsidiary, Incuvo S.A., the final stages of Project Bison are scheduled for completion and release in the fourth quarter of 2025. Incuvo will contribute to the remaining production budget in exchange for a capped share of future revenues generated by the game. Following this release, the company will no longer commission Incuvo for new VR development projects.

Moving forward, the group will concentrate its resources exclusively on the production of AAA and compact-AAA video games for personal computers and consoles. This strategic realignment emphasizes a dual-track business model, encompassing both self-publishing initiatives and work-for-hire or co-development partnerships with external publishers. By exiting the VR market, the organization aims to streamline its operations and prioritize its core competencies in high-budget, traditional gaming platforms.

PCF Group S.A. has entered into a formal Prototype Development Agreement with Sony Interactive Entertainment LLC to collaborate on the creation of a new video game prototype, currently identified by the codename Project Delta. This partnership centers on the development of a title based on intellectual property owned by Sony, marking a strategic expansion of the developer’s portfolio within the global gaming market.

The collaboration follows a work-for-hire business model, wherein the developer provides professional production services in exchange for agreed-upon compensation. The project is structured around a series of defined milestones, with specific operational requirements and payment schedules outlined in the agreement’s technical annex. The terms of this arrangement align with standard industry practices for prototype development and do not deviate from typical contractual frameworks for similar high-profile collaborations.

This agreement serves as a direct implementation of the corporate strategy updated by the developer in early 2023. By securing this contract, the firm fulfills its stated objective of pursuing high-value partnerships with reputable industry leaders to diversify its revenue streams through commissioned development work. The project represents a significant step in leveraging the developer’s technical expertise to support the production goals of major international publishers, reinforcing its position as a reliable partner in the AAA gaming sector.

PCF Group S.A. has officially suspended development work on Project Gemini, a title previously produced under a work-for-hire agreement with Square Enix Limited. This decision, effective June 1, 2025, follows the expiration of the existing content rider and the absence of a subsequent agreement to cover future production milestones. The cessation of operations stems from a lack of communication from the publisher regarding the project's status, creating significant uncertainty surrounding the publisher's intent to finalize the game.

The scope of this development halt covers the European operations of the PCF Group, specifically impacting the contractual relationship established under the original production and publishing agreement. Given the publisher's failure to provide terms for continued development or clear guidance on the project's future, the management board currently views the prospect of ongoing collaboration on Project Gemini as highly doubtful.

This strategic shift marks a definitive pause in the studio's involvement with the project as of mid-2025. The company has indicated that it will provide further updates as the situation evolves and more information regarding the status of the collaboration becomes available. The decision reflects the inherent risks associated with work-for-hire models when contractual renewals and publisher alignment are not secured in a timely manner.

PCF Group S.A. has officially scheduled the early access release of its upcoming title, Lost Rift, for September 25, 2025. This announcement confirms the transition of the project, previously identified by the codename Victoria, into the commercialization phase on the Steam platform. The decision follows previous corporate disclosures regarding the development progress of the title, marking a significant milestone in the company’s current production pipeline.

The release strategy focuses on the early access model, a common industry practice that allows developers to gather player feedback and refine gameplay mechanics while the title remains in active development. By leveraging the Steam ecosystem, the company aims to establish an initial user base and facilitate iterative improvements ahead of a potential full-scale launch. This move aligns with the company’s broader operational objectives for the 2025 fiscal year, reflecting a strategic shift from internal development to public market engagement.

The scope of this release is global, as the Steam platform provides immediate international distribution for the title. The announcement serves as a formal regulatory update, ensuring transparency for stakeholders regarding the company’s product roadmap and revenue generation timelines. By setting a definitive date for the early access launch, the management team provides clarity on the project’s status and its readiness for public consumption within the competitive PC gaming market.

PCF Group S.A. has officially scheduled the global release of the title Tracked: Shoot to Survive for November 13, 2025. This announcement confirms the commercial launch timeline for the project, which was previously developed under the internal codename Bison. The game is specifically optimized for the Meta Quest 3 and Meta Quest 3S virtual reality hardware platforms.

The decision to finalize the release date follows a multi-year development cycle, with initial project disclosures dating back to late 2023 and further updates provided in early 2025. By targeting the Meta Quest ecosystem, the company is positioning this release within the growing sector of standalone virtual reality gaming. This strategic move reflects the studio's ongoing efforts to expand its portfolio within the immersive technology market.

The announcement serves as a formal regulatory disclosure, ensuring transparency regarding the company’s production pipeline and commercial milestones. As the launch date approaches, the focus shifts toward the final deployment of the software to the specified VR platforms. This release represents a significant step in the company's current development roadmap, marking the transition of the project from the production phase to active market availability.

PCF Group S.A. has entered into a conditional agreement with Square Enix Limited to finalize the financial settlement of the Gemini project and formally terminate existing development and publishing partnerships. This agreement marks the conclusion of two long-standing collaborations, specifically the 2020 production-publishing contract for the Gemini project and the 2016 agreement concerning the Madness project. As part of this settlement, both parties have agreed to waive all potential claims arising from their previous professional relationship.

The effectiveness of this agreement is subject to a specific condition precedent involving the transfer of technical assets. PCF Group is required to deliver a comprehensive closing kit containing all development materials related to the Gemini project within 30 days of the agreement date. Square Enix Limited then has a subsequent 30-day window to verify and accept these materials. Should the publisher fail to respond or formally reject the contents of the closing kit, the agreement will expire, and the stipulated legal consequences, including the termination of the contracts and the waiver of claims, will not take effect.

This development represents a strategic shift in the operational relationship between the Warsaw-based developer and the London-based publisher. By resolving these outstanding project obligations, the parties aim to clear the path for future independence or alternative partnerships. The company intends to provide further updates as the verification process for the closing kit progresses and the final status of the agreement is confirmed.

PCF Group S.A. has officially entered into formal negotiations regarding a new service agreement and statement of work with a prominent, unnamed publisher. This development follows the receipt of a formal proposal on December 20, 2025, which the company analyzed before committing to the negotiation process on December 23, 2025. The potential partnership centers on the development of a new video game title, structured under a work-for-hire model where the company will act as the developer in exchange for agreed-upon compensation.

The decision to pursue this collaboration aligns with the company’s long-term strategic goals, specifically the updated corporate strategy announced in January 2023. This strategy explicitly prioritizes the pursuit of high-quality work-for-hire opportunities with reputable industry partners to diversify revenue streams and leverage internal development capabilities. The terms currently under discussion are consistent with standard service agreements typical for large-scale game development projects within the global interactive entertainment industry.

While the initiation of these talks marks a significant step toward securing a new project, the company emphasizes that the negotiations do not guarantee a final binding agreement. The outcome remains subject to the successful conclusion of discussions between the parties. Further updates regarding the status of the contract will be disclosed to the public once a definitive agreement is reached or if the negotiations are terminated.

The BANDAI NAMCO Group develops entertainment-related products and services in a wide range of fields, including toys, game software, arcade game machines, visual content, music content, and amuse- ment facilities. We aim to become a “Globally Recognized Entertainment Group” by establishing a strong operational foundation in Japan while aggressively developing operations in overseas markets to secure “Dreams, Fun and Inspiration” are the Engine of Happiness.

The BANDAI NAMCO Group develops entertainment-related products and services in a wide range of fields, including toys, arcade game machines, home video game software, visual software, network content, and amusement facilities. In April 2012, we started a Mid-term Plan that includes the vision of “Empower, Gain Momentum, Accelerate Evolution.” Aiming to be No. 1 with strong conviction, we are committed to being the “Leading Innovator in Global Entertainment” and recording strong growth.

FUN AND OUR MISSION “Dreams, Fun and Inspiration” are the Engine of Happiness. Through our entertainment products and services, BANDAI NAMCO will continue to provide “Dreams, Fun and Inspiration” to people around the world, based on our boundless creativity and enthusiasm. As an entertainment leader across the ages, exploring new areas and heights in entertainment.

“Dreams, Fun and Inspiration” are the Engine of Happiness. Through our entertainment products and services, BANDAI NAMCO will continue to provide to people around the world, based on our boundless creativity and enthusiasm. The BANDAI NAMCO Group develops entertainment-related products and services in a wide range of fields, including toys, network content, home video games, arcade games, amusement facilities, and visual and music content.

I N T E G R AT E D R E P O R T 2 0 1 8 develops entertainment-related toys, network content, home video games, amusement machines, amusement facilities, and visual and music content. Under the Mid-term Plan, which was launched in April 2018, the Group aims to achieve “CHANGE” to progress to the next stage, with a Mid-term Vision of CHANGE for the NEXT: Empower, Gain Momentum, and Accelerate Evolution. “Dreams, Fun and Inspiration”are the Engine of Happiness.

I N T E G R AT E D R E P O R T 2 0 2 0 The BANDAI NAMCO Group develops entertainment-related products and services in a wide range of fields, including toys, network content, home video games, amusement machines, amusement facilities, and visual and music content. “Dreams, Fun and Inspiration” are the Engine of Happiness.

01 Consolidated Business Performance / 03 Sales by IPs / Toys and Hobby Unit 05 Network Entertainment Unit 06 Real Entertainment Unit / Visual and Music Production Unit / IP Creation Unit 08 Plastic Model Market / Figure Market / Capsule Toy Market / Card Product Market 09 Candy Toy Market / Children’s Lifestyle (Sundries) Market / Babies’ / Children’s Clothing Market Top Publishers in the Global App Market BANDAI NAMCO Group 10 Home Video Game Market 10 Amusement Machine Market /...

1 BANDAI NAMCO Group Outline 01 Consolidated Business Performance / 03 Sales by IPs / Facts & Figures Entertainment Unit (Digital Business) / Entertainment Unit (Toys and Hobby Business) 06 IP Production Unit (Visual and Music Business / Creation Business) / IP Production Unit (Visual and Music Business) / IP Production Unit (Creation Business) / Amusement Unit Entertainment Unit (Digital Business) 07 Game App Market / Top Publishers in the Global App Market / Home Video Game Market ...

www.bandainamco.co.jp TABLE OF CONTENTS 1 Bandai Namco Group Outline 01 Consolidated Business Performance / Entertainment Unit (Digital Business) 04 Entertainment Unit (Toys and Hobby Business) 06 IP Production Unit (Visual and Music Business / Entertainment Unit (Digital Business) Entertainment Unit (Toys and Hobby Business) 09 Plastic Model Market / Figure Market / Capsule Toy Market / Card Product Market Children’s Lifestyle (Sundries) M...