PCF Group S.A.

M&A Activity • Jun 19, 2024

Report Content Agreeing on a plan for Project Gemini and concluding a content rider forthe development and publishing agreement for Project GeminiArticle17 Section 1 of the MARWith reference to the current report no.58/2023 of 24 November 2023 and current report no. 2/2024 of 30 January2024, the Management Board of PCF Group S.A. with its registered officein Warsaw (the "Company") informs that it has agreed with Square EnixLimited, the publisher of the game codenamed Project Gemini (the"Publisher"), a plan for Project Gemini and, as a result, the Companyconcluded another content rider on 19 June 2024 to the development andpublishing agreement regarding the continuation of the development workson Project Gemini rendered for the Publisher by the Company's group inEurope in the work-for-hire model.

Moreover, with reference to current report No. 58/2023 of 24 November2023, the Company's Management Board informs that, in accordance withthe concluded content rider, the development of Project Gemini will notbe continued by the Group on the current commercial terms. As aconsequence of this fact, the Management Board estimates that the futurerevenues obtained by the Company on this project will only cover thedirect costs incurred by the Company for its development.

The effect of including the updated commercial conditions in thevaluation of Project Gemini will be a reduction in the margin achievedby the Group on the implementation of the entire development andpublishing agreement with the Publisher, which, as a consequence ofupdating the contract valuation in accordance with InternationalFinancial Reporting Standard 15 "Revenue from contracts with customers",will result in a decrease in standalone and consolidated sales revenuesand a decrease in the standalone and consolidated financial result.

This current report updates the information contained in the currentreports No. 58/2023 of 24 November 2023 and No. 2/2024 of 30 January2024. It is not the Company's intention to inform the public in thefuture on conclusion of content riders to development and publishingagreements, unless it is required by law.