CD Projekt, Ubisoft, Techland Gaming, IT Analyst: Piotr Bogusz +48 22 438 24 08

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CD Projekt, Ubisoft, Techland Gaming, IT Analyst: Piotr Bogusz +48 22 438 24 08 Thursday, June 13, 2019 | special comment E3 Conference 2019 Report E3: CD Projekt, Ubisoft, Techland Gaming, IT Analyst: Piotr Bogusz +48 22 438 24 08 The next day of the event did not bring breakthrough ▪ At the meeting with Ubisoft representatives, there x information from the world of games. In our opinion, were questions regarding Cyberpunk 2077. Ubisoft feels ▪ X the number of visitors was higher vs. the previous day. comfortable with a 5-week buffer between the launch of Borderlands 3, Cyberpunk 2077, Tom Clancy's Ghost Watch Dogs: Legion (WD) and Cyberpunk 2077. At the Recon and Watch Dogs: Legion’s stands were still the same time, the Company points out that it will be crucial to Xxx most popular ones (in some cases queues were strongly support WD's sale after the launch. The company's xxx temporarily closed). We present the report from the representatives referred to the postponement of Skull and conference with Marcin Iwiński (CD Projekt), meetings Bones (sea battle simulator in multiplayer mode inspired with representatives of Ubisoft and the closed show of by the mechanics of Assassin's Creed IV: Black Flag) to Dying Light 2 (Techland). 2020. The main reason is the complicated process of creating a new series of games (the so-called IP) and the ▪ A meeting ‘The Past, Present and Future’ with Marcin desire to make the best possible refinement of the Iwiński, vice president of CD Projekt and the largest production. The game was announced on 2017 E3. Ubisoft shareholder of CDR, took place in the Colliseum building wants to take advantage of the upward trend recorded in in the morning. The vice president talked about the the mobile games market. The company will carefully company's beginnings, further development and presented analyze the commercial potential of the announced Uplay+ the CD Projekt’s philosophy of creating games. He subscription program, under which players will gain access emphasized that the company's vision is to create timeless to Ubisoft games and additional content for $14.99 per and the best games in the world that will be able to evoke month. In the future, it will be possible to adjust the many positive emotions of the players. The ownership subscription price depending on the interest in the service. structure of the Company helps to achieve the goal (focusing a large block of shares in the hands of the Ubisoft Stand Management Board), which allows to make courageous decisions. The aim of CD Projekt is to create refined games, which in many cases results in a long production time. Each game is a lesson for CD Projekt and allows you to improve the production process. The company does not want to become a ‘game factory’, the intention is to keep selling the released titles even years after the launch. Over the next 10 years, the Company would like to add another series of games to its portfolio, the so-called IP. Currently, it is too early to specify what kind of game it would be and in what world it would be embedded. The audience enthusiastically approached the statements of the vice president, which were often rewarded with applause. Meeting with CD Projekt – ‘The Past, Present and Future’ Source: Dom Maklerski mBanku ▪ The demonstration of the Dying Light 2 game behind closed doors impressed the audience. As announced, the game is to be released in spring 2020 (the launches of Watch Dogs: Legion and Cyberpunk 2077 were announced for this period). The show presented part of the task performed by the main character. Techland decided to introduce mechanics to the game, in which the decisions affect the world around the players. The shown part of the game contained many ways of moving around a ruined city full of zombies, showed combat mechanics and a plot part. The game will offer a co-op mode of up to four players. Closed game shows are held every hour and are very popular among people from the industry. The genre of zombie games is very popular in the United States, which can result in a high production potential of the production. Source: Dom Maklerski mBanku Dying Light 2 show - Techland x ▪ X Xxx xxx Source: Dom Maklerski mBanku 2 List of abbreviations and ratios contained in the report. EV – net debt + market value (EV – economic value) EBIT – Earnings Before Interest and Taxes EBITDA – EBIT + Depreciation and Amortisation PBA – Profit on Banking Activity P/CE – price to earnings with amortisation MC/S – market capitalisation to sales EBIT/EV – operating profit to economic value P/E – (Price/Earnings) – price divided by annual net profit per share ROE – (Return on Equity) – annual net profit divided by average equity P/BV – (Price/Book Value) – price divided by book value per share Net debt – credits + debt papers + interest bearing loans – cash and cash equivalents EBITDA margin – EBITDA/Sales OVERWEIGHT (OW) – a rating which indicates that we expect a stock to outperform the broad market NEUTRAL (N) – a rating which indicates that we expect the stock to perform in line with the broad market UNDERWEIGHT (UW) – a rating which indicates that we expect the stock to underperform the broad market Recommendations of Dom Maklerski mBanku : A recommendation is valid for a period of 9 months, unless a subsequent recommendation is issued within this period. Expected returns from individual recommendations are as follows: BUY – we expect that the rate of return from an investment will be at least 15% ACCUMULATE – we expect that the rate of return from an investment will range from 5% to 15% HOLD – we expect that the rate of return from an investment will range from –5% to +5% REDUCE – we expect that the rate of return from an investment will range from -5% to -15% SELL – we expect that an investment will bear a loss greater than 15% Recommendations are updated at least once every nine months. mBank S.A. with its registered office in Warsaw at Senatorska 18 renders brokerage services in the form of derived organisational unit—Brokerage Office which uses name Dom Maklerski mBanku. The present report expresses the knowledge as well as opinions of the authors on day the report was prepared. The opinions and estimates contained herein constitute our best judgment at this date and time, and are subject to change without notice. The present report was prepared with due care and attention, observing principles of methodological correctness and objectivity, on the basis of sources available to the public, which Dom Maklerski mBanku considers reliable, including information published by issuers, shares of which are subject to recommendations. However, Dom Maklerski mBanku, in no case, guarantees the accuracy and completeness of the report, in particular should sources on the basis of which the report was prepared prove to be inaccurate, incomplete or not fully consistent with the facts. This document does not constitute an offer or invitation to subscribe for or purchase any financial instruments and neither this document nor anything contained herein shall form the basis of any contract or commitment whatsoever. It is being furnished to you solely for your information and may not be reproduced or redistributed to any other person. This document nor any copy hereof is not to be distributed directly or indirectly in the United States, Australia, Canada or Japan. Recommendations are based on essential data from the entire history of a company being the subject of a recommendation, with particular emphasis on the period since the previous recommendation. Investing in shares is connected with a number of risks including, but not limited to, the macroeconomic situation of the country, changes in legal regulations as well as changes on commodity markets. Full elimination of these risks is virtually impossible. mBank S.A. bears no responsibility for investment decisions taken on the basis of the present report or for any damages incurred as a result of investment decisions taken on the basis of the present report. It is possible that mBank S.A. in its brokerage activity renders, will render or in the past has rendered services for companies and other entities mentioned in the present report. mBank S.A. does not rule out offering brokerage services to an issuer of securities being the subject of a recommendation. Information about any conflicts of interest that may arise in connection with the issuance of recommendations (should such a conflict exist) is provided below, and it is valid as of the date of the most recent Monthly Report published by Dom Maklerski mBanku or as of the date of the most recent recommendation issued for an Issuer, as applicable. This document was not transferred to the issuers prior to its publication. mBank S.A. may have received compensation from the following companies in the last 12 months: ABC Data, Alchemia, Alior Bank, Ambra, Amica, Bank Handlowy, Bank Millennium, Bank Pekao, BGŻ BNP Paribas, BoomBIT, Boryszew, Capital Park, CD Projekt, Echo Investment, Elemental Holding, Elzab, Enea, Energoaparatura, Erbud, Ergis, Erste Bank, Famur, Ferrum, GetBack, Getin Holding, Getin Noble Bank, Groclin, Impexmetal, INDATA, ING BSK, Kopex, Kruk, LW Bogdanka, Mangata, Mennica Polska, Mostostal Warszawa, Netia, Neuca, Oponeo.pl, Orbis, OTP Bank, PA Nova, PBKM, PEKABEX, PGE, PGNiG, PKO BP, Polenergia, Polimex-Mostostal, Polnord, Polwax, Prime Car Management, Prochem, Projprzem, PZU, Raiffeisen Bank International, Rawlplug, Santander Bank Polska, Seco/Warwick, Skarbiec Holding, Solar Company, Stelmet, Sygnity, Tarczyński, TOYA, Trakcja, Unibep, Uniwheels, Vistal Gdynia, YOLO, Zastal, ZUE. In the last 12 months mBank S.A. has acted as dealer-manager for tender or exchange offers for the shares of: ABC Data, BoomBIT, Orbis, Polenergia, Polwax, Prime Car Management. Asseco Poland provides IT services to mBank S.A.
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