CD Projekt S.A. (OTGLY) Shareholder/Analyst Call Prepared Remarks Transcript

Extraordinary General Meeting of CD Projekt S.A. convened on March 11, 2026 at 10:00 a.m., opened by Adam Kicinski. The company provided detailed instructions for electronic voting via tablets (showing shareholder representation and documents) and the process to select, review, and confirm or amend votes. The excerpt contains only procedural/administrative information and no financial results, guidance, resolutions, or material disclosures.

Analysis

An EGM with formalized voting mechanics is a governance lever in search of a substantive trigger — the market should treat this as a binary-litmus event rather than a routine admin meeting. If the meeting is being used to authorize board refreshes, buybacks, or charter changes that enable asset sales or accelerated monetization, those actions can compress the discount applied to CD Projekt’s live-service and IP value by 20–40% within 3–9 months due to faster FCF conversion and clearer capital allocation.

Second-order winners include activist funds and strategic acquirers: improved voting turnout and clearer procedures lower transaction friction for any prospective block-builder and increase the probability of negotiated outcomes (board swaps, special dividends, carve-outs). Service studios and middleware partners are potential beneficiaries if governance changes accelerate live-service roadmaps — conversely, incumbents with slow monetization capability may lose pricing leverage and face margin pressure as CDP reallocates R&D spend.

Key tail risks and catalysts: a contested vote, regulatory pushback in Poland, or an ambiguous resolution wording can delay any rerate for months and spark a 15–30% sell-off on confidence alone. Watch near-term windows (days for vote outcomes, weeks for board appointments to be announced, 3–9 months for operational rerates). The consensus mistake is treating this EGM as procedural — the underpriced outcome is a successful activist/board change that materially tightens valuation multiples; the overdone risk is pricing in immediate execution of new monetization strategies rather than governance wins alone.

Key Decisions for Investors

• Event-driven long OTGLY (CD Projekt OTC): buy 3-month calls ~10–20% OTM (size 1–3% NAV). Rationale: asymmetric payoff if EGM results in board/buyback approval; target 30–40% upside in 3–6 months, max loss = premium paid. Exit/roll on announcement or if vote delayed beyond 60 days.
• Conditional equity buy: if EGM approves buyback or charter enabling asset sale, initiate a 3–5% NAV long cash position in OTGLY within 48 hours and set a hard stop at -15% from entry. Rationale: governance-driven de-risking typically re-rates peers by 25–35% over 3–9 months.
• Pair trade to isolate governance rerate: long OTGLY / short TTWO (dollar neutral) for 3–6 months. Rationale: hedges macro and execution beta while capturing idiosyncratic governance upside; target spread improvement 200–400bps, cut if OTGLY underperforms TTWO by >12% in 30 days.
• Protective hedge if vote fails: buy 3-month OTGLY puts ~8–12% OTM (size = 0.5–1% NAV) to cap downside from confidence-driven sell-off. Rationale: a failed or contested EGM is a plausible catalyst for a 15–30% repricing within days.