PCF Group S.A.

Management Reports • Mar 6, 2025

PCF Group S.A.'s decision to phase out its VR game publishing businessWithreference to the current report No. 54/2023 dated 12 November 2023regarding the conclusion of the agreement for the production of projectBison, the Management Board of PCF Group S.A. with its registered officein Warsaw (the "Company" or the "Issuer") informs that on 6 March 2025it agreed with Incuvo S.A. with its registered office Katowice("Incuvo"), a subsidiary of the Issuer, on the terms of the final stagesof work on project Bison, which cover the period until the game'srelease, scheduled for the fourth quarter of 2025.

As part of these arrangements, there were minor changes to the scope ofthe project and the previous terms of mutual settlements between theparties. According to the changed plan for project Bison, Incuvo willparticipate in covering a small part of the costs related to the furtherproduction of project Bison in exchange for a share of a certain portionof future revenues received by the Company in connection with thepublishing and distribution of the game, but only up to the amount thatIncuvo allocates to increase the budget for the final stage ofproduction of project Bison.

At the same time, the Management Board of the Company conducted ananalysis of the current activities of the Company's capital group (the"Group") in the segment of games designed for virtual reality (VR)platforms, the prospects for further development within this segment,taking into account the current situation of the Group and the change inthe market situation consisting in a significant reduction ininvestments in the production of new VR games by VR hardware platformsholders, which negatively affects the assessment of the futurecommercial potential of this segment, based on which on 6 March 2025 itdecided to phase out the Company's VR game publishing activities.

As a consequence of the above decision:

- the Company will not commission Incuvo with development work on theproduction of new VR games, and project Bison will be the last VR gamereleased by the Company as a publisher;

- the Group (excluding Incuvo) will not carry out further activitiesrelated to the development of business and competencies in the area ofpublishing VR games.

The Group's operations (excluding Incuvo) will focus on the productionof AAA and compact-AAA video games for personal computers and consoles,both in a self-publishing model, as well as in a work-for-hire model,both full-scale (such as project Gemini) and co-development (such asproject Maverick).