PCF GROUP SA (22/2024) Aktualizacja ram czasowych realizacji Strategii

Raport bieżący 22/2024

Update of the timeframe for the implementation of the Strategy

Referring to current report No. 15/2024 dated 7 August 2024, regarding

the commencement of the strategic options review and current report No.

3/2023 dated 31 January 2023, regarding the update of the strategy of

PCF Group S.A. and the People Can Fly Group (the _quot;Strategy_quot;), the

Management Board of PCF Group S.A. with its registered office in Warsaw

(the _quot;Company_quot;) announces the completion of the progress evaluation of

the Strategy's implementation. As a result of the evaluation, the

Management Board has upheld the key assumptions of the Strategy, on the

condition of obtaining new financing, and has updated the following

objectives defined in the Strategy:

- based on the current level of advancement in the implementation of the

projects carried out in the self-publishing model, the Company plans the

release of project Bison for 2025 and projects Bifrost and Victoria,

under early access formula, for 2026;

- based on ongoing and planned projects, the Company plans to maintain

the involvement of teams carrying out work in the work-for-hire model at

approximately 370 FTEs in the period 2025-2028 (average during the whole

period);

- the strategic goal of the Company's capital group is to generate at

least PLN 3.3 billion in total revenues over the period 2024-2028, with

approximately 5% in the year 2025, approximately 27% in the year 2026,

approximately 29% in the year 2027, and approximately 33% in the year

2028;

- the Management Board does not envisage recommending to the Company's

General Meeting a payment of dividends until the Company achieves

revenues, profits and positive income cash flows from planned

self-publishing activities, i.e., no earlier than in relation to the

profits generated for the financial year 2026.

A key condition for the further implementation of the Strategy will be

obtaining new financing in the amount of approximately PLN 350 million

during the period 2025-2026, i.e., to the extent necessary to maintain

the current scale of the Company's capital group's activities in the

area of projects carried out in the self-publishing model.

Due to the above, analytical work on introducing the incentive program

based on the condition of achieving PLN 1.5 billion cumulative EBITDA

profit by the Group in the years 2023-2027, described in the Company's

current report No. 3/2023 (due to the above-mentioned changes in release

dates, this condition would need to be adjusted, particularly by

shifting the execution period to 2024-2028) has been suspended until the

completion of the strategic options review and the acquisition of new

financing as mentioned above.

As part of the strategic options review, the Management Board will also

analyze the scenario of not obtaining new financing in the required

amount or not meeting other conditions related to projects intended to

be carried out in the work-for-hire model, and the consequent release of

the Bifrost or Victoria project in the work-for-hire model.

Disclaimer

This document has been prepared by PCF Group S.A. with its registered

office in Warsaw ("PCFG") to provide a general overview of the PCFG

Group ("PCFG Group") through a set of selected highlights. It is purely

informational and does not purport to be a complete analysis of the PCFG

Group's financial condition. All information contained herein speaks

only as of its date and therefore this document will not be revised,

updated or rewritten to reflect any changes in circumstances subsequent

to its date.

This document should not be construed as a recommendation or advice

regarding an investment opportunity, or as an offer to purchase or sell

any securities or financial instruments or to participate in any

business venture of the PCFG Group.

While all reasonable care has been taken in preparing this document,

PCFG does not warrant the accuracy and completeness of its contents,

especially if any of the source materials on which they are based are

found to be incomplete or not fully reflecting the relevant facts.

Anyone looking to make an investment decision in respect of any

financial instruments issued by the PCFG Group is advised to rely on

information disclosed in PCFG's official reports, written and published

in accordance with applicable laws which are a reliable source of

information about the PCFG Group. Statistical data or information about

the market in which PCFG or the PCFG Group or its companies operate,

used in this document, has been obtained from public sources or as from

sources indicated in the strategy document and has not been subject to

additional or independent verification.

Neither PCFG nor any member of its governing bodies, any employee,

associate or adviser involved in the work on this document or any entity

of the PCFG Group, shall be held liable for the consequences of any

decisions taken on the basis of or in reliance on information contained

in this document, or resulting from its contents or any use hereof.

Furthermore, this document is not to be regarded as a representation or

commitment made by any of the persons mentioned above.

Although this document and descriptions contained herein may include

forward-looking statements, in particular "objectives, ambitions,

planned", some of them referring to our expected financial results,_#160;they

are not profit forecasts and may not be construed as such. The

forward-looking statements contained herein are subject to a range of

both known and unknown risks, uncertainties and other factors (some of

them beyond PCFG's control) that may cause the actual results, levels of

business or achievements of the PCFG Group and PCFG to differ materially

from those anticipated in this document, including the expected

financial results described herein. This document may include

information or financial indicators that have not been audited, reviewed

or otherwise assessed by an external auditor.

This document is not intended for distribution to or in the territory of

countries where public dissemination of the information contained in

this document may be restricted or prohibited by law.

More information on page: http://biznes.pap.pl/en/reports/espi/all,0,0,0,1

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