Subject: Management Board recommendation concerning allocation of net profit obtained in 2020
Legal basis: Art. 17 section 1 of MAR – inside information
The Management Board of CD PROJEKT S.A. with a registered office in Warsaw (hereinafter referred to as “the Company”) hereby announces that on 22 April 2021 it adopted a resolution concerning submission to the General Meeting of a recommendation concerning allocation of net profit obtained in 2020, part of which is to be paid out to Company shareholders as a dividend.
Pursuant to the above, the Board recommends that the Ordinary General Meeting allocate the net profit in the amount of 1 132 234 728.22 PLN (one billion one hundred thirty-two million two hundred thirty-four thousands seven hundred and twenty-eight PLN 22/100) as follows: 503 694 000.00 (five hundred three million six hundred ninety-four thousand PLN) is to be paid out to shareholders as a dividend at 5.00 PLN (five PLN) per share, while the remainder, i.e. 628 540 728.22 (six hundred twenty-eight million five hundred forty thousand seven hundred twenty-eight PLN 22/100) is to be transferred to the Company’s reserve capital.
The Management Board also recommends that the dividend date be set to 1 June 2021, with dividend payment occurring on 7 June 2021.
The above recommendation has been submitted to the Supervisory Board for endorsement, pursuant to §21 section 2 item e of the Company Articles, following which it will be formally submitted to the General Meeting for approval, pursuant to Art. 395 §2 item 2 of the Commercial Companies Code.
In justifying its recommendation the Management Board wishes to draw attention to the fact that 2020 was the release year of Cyberpunk 2077, which, coupled with strong sales of the Company’s other products, resulted in record-breaking earnings.
Following assessment of the Company’s cash assets, bank deposits and treasury bonds, its future publishing and investment plans, the Board recommends to the General Meeting that a portion of the Company’s financial assets be returned to shareholders.
At the same time the Board wishes to remark that it has not instituted a regular dividend policy. In the Board’s opinion, for a dynamically expanding company which focuses on a strongly competitive market segment and whose financial requirements and earnings are both dependent on cyclical videogame development projects and the popularity of videogame releases, the appropriate approach with regard to profit sharing is to evaluate the Group’s financial standing, business plans, challenges and requirements on a case-by-case basis.
Disclaimer: This English language translation has been prepared solely for the convenience of English speaking readers. Despite all the efforts devoted to this translation, certain discrepancies, omissions or approximations may exist. In case of any differences between the Polish and the English versions, the Polish version shall prevail. CD PROJEKT, its representatives and employees decline all responsibility in this regard.