CEZ A.S.

Interim / Quarterly Report • Aug 8, 2024

CEZ GROUP

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

PREPARED IN ACCORDANCE WITH IFRS ACCOUNTING STANDARDS AS ADOPTED BY EUROPEAN UNION AS OF JUNE 30, 2024

CEZ GROUP CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2024

	Note	June 30, 2024	December 31, 2023
ASSETS:
Plant in service Less accumulated depreciation and impairment		956,895 (553,615)	947,745 (538,500)
Net plant in service		403,280	409,245
Nuclear fuel Construction work in progress		16,794 33,845	16,228 26,659
Total property, plant and equipment		453,919	452,132
Investments in associates and joint-ventures Restricted financial assets Other non-current financial assets Intangible assets Deferred tax assets	5	3,781 26,990 26,679 29,345 1,221	3,737 25,229 30,379 27,801 1,380
Total other non-current assets		88,016	88,526
Total non-current assets		541,935	540,658
Cash and cash equivalents Trade and other receivables Income tax receivable Materials and supplies Fossil fuel stocks Emission rights Derivatives and other current financial assets Other current assets	6 5	41,622 61,368 804 23,048 2,066 4,403 73,638 20,257	10,892 84,759 942 20,255 2,857 30,819 111,714 22,869
Total current assets		227,206	285,107
Total assets		769,141	825,765

CEZ GROUP CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2024

continued

	Note	June 30, 2024	December 31, 2023
EQUITY AND LIABILITIES:
Stated capital Treasury shares Retained earnings and other reserves		53,799 (1,334) 183,298	53,799 (1,334) 191,587
Total equity attributable to equity holders of the parent		235,763	244,052
Non-controlling interests		1,542	1,549
Total equity		237,305	245,601
Long-term debt, net of current portion Provisions	8	119,378 168,750	131,042 165,440
Other long-term financial liabilities Deferred tax liability Other long-term liabilities	9	5,834 31,821 31	6,104 43,888 31
Total non-current liabilities		325,814	346,505
Short-term loans Current portion of long-term debt Trade payables Income tax payable Provisions Derivatives and other short-term financial liabilities Other short-term liabilities	10 8 9	7,650 32,223 39,708 10,863 20,300 75,923 19,355	7,314 30,554 59,869 2,268 31,113 82,540 20,001
Total current liabilities		206,022	233,659
Total equity and liabilities		769,141	825,765

CEZ GROUP CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2024

	Note	1-6/2024	1-6/2023	4-6/2024	4-6/2023
Sales of electricity, heat, gas and coal Sales of services and other revenues Other operating income		113,714 46,774 1,229	127,858 39,185 2,654	50,042 23,604 676	54,686 19,580 2,051
Total revenues and other operating income	11	161,717	169,697	74,322	76,317
Gains and losses from commodity derivative trading	12	3,447	5,931	2,139	5,194
Purchase of electricity, gas and other energies Fuel and emission rights Services Salaries and wages Material and supplies Capitalization of expenses to the cost of		(29,507) (19,283) (18,462) (19,573) (9,768)	(41,167) (19,608) (16,539) (16,984) (8,322)	(14,241) (8,180) (9,809) (10,100) (5,710)	(20,515) (7,978) (9,102) (9,037) (4,379)
assets and change in own inventories Depreciation and amortization Impairment of property, plant and equipment and intangible assets Impairment of trade and other receivables		2,493 (17,916) (28) 65	3,033 (17,014) (221) (47)	1,587 (9,174) (26) (78)	1,617 (8,657) (235) (188)
Other operating expenses	13	(1,852)	(13,441)	(1,045)	(2,017)
Income before other income (expenses) and income taxes		51,333	45,318	19,685	21,020
Interest on debt Interest on provisions Interest income Share of profit (loss) from associates and joint-ventures Impairment of financial assets Other financial expenses		(2,713) (4,035) 1,742 (31) (6) (1,187)	(3,758) (3,647) 4,021 493 34 (676)	(1,319) (2,017) 897 (34) (1) (113)	(1,767) (1,823) 2,370 108 269 (121)
Other financial income		1,680	2,286	691	(378)
Total other income (expenses)		(4,550)	(1,247)	(1,896)	(1,342)
Income before income taxes		46,783	44,071	17,789	19,678
Income taxes		(25,726)	(21,790)	(10,286)	(8,218)
Net income		21,057	22,281	7,503	11,460
Net income attributable to:
Equity holders of the parent Non-controlling interests		21,093 (36)	22,230 51	7,559 (56)	11,458 2
Net income per share attributable to equity holders of the parent (CZK per share):
Basic Diluted		39.3 39.3	41.4 41.4	14.1 14.1	21.3 21.3

CEZ GROUP CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2024

	Note	1-6/2024	1-6/2023	4-6/2024	4-6/2023
Net income		21,057	22,281	7,503	11,460
Change in fair value of cash flow hedges Cash flow hedges		4,799	53,830	(8,671)	6,306
reclassified to statement of income Change in fair value of debt		(9,815)	15,312	(4,197)	4,623
instruments Disposal of debt instruments Translation differences –		(561) 5	1,060 24	(385) 1	560 1
subsidiaries Translation differences – associates and joint		293	(122)	(242)	255
ventures Disposal of translation		37	(327)	(35)	(202)
differences Share on other equity movements of associates		(28)	(15)	(19)	(15)
and joint-ventures		(2)	(60)	(18)	1
Deferred tax related to other comprehensive income	14	3,829	(49,548)	8,160	(7,586)
Net other comprehensive income that may be reclassified to statement of income or to assets in subsequent periods		(1,443)	20,154	(5,406)	3,943
Total comprehensive income, net of tax		19,614	42,435	2,097	15,403
Total comprehensive income attributable to:
Equity holders of the parent Non-controlling interests		19,635 (21)	42,399 36	2,167 (70)	15,388 15

CEZ GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2024

	Note Attributable to equity holders of the parent
		Stated capital	Treasury shares	Transla tion difference	Cash flow hedge reserve	Debt instru ments	Equity instruments and other reserves	Retained earnings	Total	Non controlling interests	Total equity
Balance as at January 1, 2023		53,799	(1,334)	(5,177)	(22,258)	(1,675)	(2,020)	237,551	258,886	1,375	260,261
Net income Other comprehensive income		- -	- -	- (448)	- 19,794	- 884	- -	22,230 (61)	22,230 20,169	51 (15)	22,281 20,154
Total comprehensive income		-	-	(448)	19,794	884	-	22,169	42,399	36	42,435
Dividends Acquisition of subsidiaries Changes of non-controlling		- -	- -	- -	- -	- -	- -	(77,838) -	(77,838) -	(9) (3)	(77,847) (3)
interests without loss of control Put options held by non		-	-	1	-	-	-	(14)	(13)	(12)	(25)
controlling interests Balance as at June 30, 2023		- 53,799	- (1,334)	(1) (5,625)	- (2,464)	- (791)	- (2,020)	7 181,875	6 223,440	(5) 1,382	1 224,822

CEZ GROUP CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2024

continued

	Note				Attributable to equity holders of the parent
		Stated capital	Treasury shares	Transla tion difference	Cash flow hedge reserve	Debt instru ments	Equity instruments and other reserves	Retained earnings	Total	Non controlling interests	Total equity
Balance as at January 1, 2024		53,799	(1,334)	(3,468)	8,382	284	(2,324)	188,713	244,052	1,549	245,601
Net income Other comprehensive income		- -	- -	- 287	- (1,237)	- (507)	- -	21,093 (1)	21,093 (1,458)	(36) 15	21,057 (1,443)
Total comprehensive income		-	-	287	(1,237)	(507)	-	21,092	19,635	(21)	19,614
Dividends Contribution from owners of	7	-	-	-	-	-	-	(27,914)	(27,914)	(11)	(27,925)
non-controlling interests Acquisition of subsidiaries Changes of non-controlling		- -	- -	- -	- -	- -	- -	- -	- -	8 9	8 9
interests without loss of control Put options held by non		- -	- -	- 4	- -	- -	- -	(6) (8)	(6) (4)	4 4	(2) -
controlling interests Balance as at June 30, 2024		53,799	(1,334)	(3,177)	7,145	(223)	(2,324)	181,877	235,763	1,542	237,305

CEZ GROUP CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2024

	Note	1-6/2024	1-6/2023
OPERATING ACTIVITIES:
Income before income taxes		46,783	44,071
Adjustments of income before income taxes to cash generated from operations:
Depreciation and amortization		17,916	17,014
Amortization of nuclear fuel		1,734	1,861
(Gains) and losses on non-current asset retirements		(85)	22
Foreign exchange rate loss (gain)		(1,099)	195
Interest expense, interest income and dividend income		888	(274)
Provisions		(7,956)	(9,872)
Impairment of property, plant and equipment and
intangible assets		28	221
Other non-cash expenses and income		(7,373)	14,621
Share of (profit) loss from associates and joint-ventures		31	(493)
Changes in assets and liabilities:
Receivables and contract assets		28,042	83,666
Materials, supplies and fossil fuel stocks Receivables and payables from derivatives		(1,851) 13,759	2,245 (10,865)
Other assets		24,470	28,116
Trade payables		(18,269)	(35,865)
Other liabilities		(874)	3,023
Cash from operations		96,144	137,686
Income taxes paid		(25,129)	(2,468)
Interest paid, net of capitalized interest		(3,290)	(4,629)
Interest received		1,744	4,010
Dividends received		10	31
Net cash flow from operating activities		69,479	134,630
INVESTING ACTIVITIES:
Acquisition of subsidiaries, associates and joint-ventures,
net of cash acquired	4	(1,314)	(513)
Disposal of subsidiaries, associates and joint-ventures,
net of cash disposed of		32	11
Additions to non-current assets, including capitalized interest		(22,637)	(18,993)
Proceeds from sale of non-current assets		246	222
Loans made		(8)	(153)
Repayment of loans		79	20
Change in restricted financial assets		(2,301)	(1,168)
Net cash flow from investing activities		(25,903)	(20,574)

CEZ GROUP CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2024

continued

	Note	1-6/2024	1-6/2023
FINANCING ACTIVITIES:
Proceeds from borrowings Payments of borrowings Payments of lease liabilities Proceeds from other long-term liabilities Payments of other long-term liabilities Dividends paid to Company's shareholders (Dividends paid) contributions received – owners of noncontrolling interests, net Acquisition of non-controlling interests		164,346 (175,756) (482) 104 (972) (195) (1) (2)	66,366 (88,144) (362) 38 (2,444) (133) (7) (25)
Net cash flow from financing activities		(12,958)	(24,711)
Net effect of currency translation and allowances in cash		112	(664)
Net increase in cash and cash equivalents		30,730	88,681
Cash and cash equivalents at beginning of period		10,892	36,609
Cash and cash equivalents at end of period		41,622	125,290
Supplementary cash flow information:
Total cash paid for interest		3,576	4,914

CEZ GROUP NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2024

1. The Company

ČEZ, a. s. ("ČEZ" or "the Company") is a Czech joint-stock company, owned 69.8% (69.9% of voting rights) at June 30, 2024 by the Czech Republic represented by the Ministry of Finance. The remaining shares of the Company are held by legal persons and individuals and they are traded on stock exchange markets in Prague and Warsaw. The address of the Company's registered office is Duhová 2/1444, Praha 4, 140 53, Czech Republic.

The Company is a parent company of the CEZ Group ("the Group"). CEZ Group is a vertically integrated energy group that is among the largest economic entities in the Czech Republic and Central Europe. The main business of the Group is the generation, distribution, trade and sale in the field of electricity and heat, coal mining, trading in commodities and providing of complex energy services, distribution, trade and sale in the field of natural gas and providing of electronic communications.

The "VISION 2030 – Clean Energy of Tomorrow" strategy is focused on dynamic transformation of the generation portfolio to low-emission one and achievement of full climate neutrality already by 2040. The strategy includes a commitment to end the production of heat from coal and fundamentally limit the production of electricity from coal by 2030. In areas of distribution and sales, the basic goal is to provide the most advantageous energy solutions and the best customer experience on the market.

2. Summary of Significant Accounting Policies

2.1. Financial Statements

The interim consolidated financial statements for the nine months ended June 30, 2024 have been prepared in accordance with IAS 34 and have not been audited by an independent auditor. The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statement as of December 31, 2023.

2.2. Changes in Accounting Policies

Adoption of New IFRS Standards in 2024

The accounting policies adopted in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statement as of December 31, 2023.

As of January 1, 2024, the Group did not adopt any new or amended accounting standard IFRS that would have a significant impact on Group's interim consolidated financial statements.

3. Seasonality of Operations

The seasonality within the segments Generation, Distribution and Sales usually takes effect in such a way that the revenues and operating profits of these segments for the 1st and 4th quarters of a calendar year are slightly higher than the revenues and operating profits achieved in the remaining period.

4. Changes in the Group Structure

The following table summarizes the cash flows related to acquisitions in the first six months of 2024 (in CZK millions):

Cash outflow on acquisition of the subsidiaries	1,426
Cash contributions to joint-ventures	47
Payments of payables from acquisitions of previous periods	93
Less:
Cash and cash equivalents acquired on acquisition of the subsidiaries	(242)
Cash and cash equivalents acquired on including the previously unconsolidated subsidiaries in consolidation	(10)
Total acquisition of subsidiaries, associates and joint-ventures, net of cash acquired	1,314

4.1. Acquisitions of Subsidiaries in the First Six Months of 2024

On April 5, 2024, the Group acquired a 100% interest in Polish company Instal Bud Pecyna Sp. z o.o., which focuses on implementation of industrial installations of technical equipment of buildings and wastewater treatment projects.

On April 30, 2024, the Group acquired a 100% interest the company ACTHERM Distribuce s.r.o., which focuses on heat distribution.

On April 30, 2024, the Group acquired a 100% interest the companies EDERA Group a.s., EDERA Jičín s.r.o. a Metropolitní s.r.o., which focuses on providing services in the field of electronic communications, production, installation, repairs of electrical machines and devices, electronic and telecommunications equipment.

The fair values of acquired identifiable assets and liabilities and the purchase considerations have been stated provisionally and could be adjusted in the subsequent period. The following table presents the current best estimate of fair values of acquired identifiable assets and liabilities, which are part of the business combination transaction, as of the date of acquisition (in CZK millions):

	Instal Bud Pecyna	ACTHERM Distribuce	Group of companies of EDERA	Other	Total
Share being acquired	100%	100%	100%
Property, plant and equipment Intangible assets Other long-term financial assets	11 131 24	153 - -	85 4 6	- - -	249 135 30
Other non-current assets	5	-	-	-	5
Cash and cash equivalents Other short-term financial assets	77 -	150 -	5 46	20 -	252 46
Materials and supplies	-	1	10	-	11
Trade receivables	70	-	5	-	75
Contract assets	31	-	-	-	31
Another current assets	1	3	1	-	5
Long-term debt, net of current portion	(1)	(147)	(41)	-	(189)
Long-term provision	(11)	-	-	-	(11)
Other long-term financial liabilities	(14)	-	-	-	(14)
Deferred tax liability Trade payables	(25)	(12)	-	-	(37)
Short-term provisions	(50) (14)	(54) (1)	(7) -	-	(111) (15)
Other short-term financial payables	-	-	(46)	-	(46)
Another current liabilities	(27)	(41)	(17)	(2)	(87)
Total net assets	208	52	51	18	329
Share of net assets acquired	208	52	51	9	320
Goodwill	243	460	584	1	1,288
Total purchase consideration	451	512	635	10	1,608
Liabilities from acquisition of the subsidiary	(73)	(25)	(84)	-	(182)
Cash outflow on acquisition in 2024	378	487	551	10	1,426
Less: Cash and cash equivalents paid in previous periods	-	-	-	(10)	(10)
Less: Cash and cash equivalents in the subsidiary acquired	(77)	(150)	(5)	(10)	(242)
Cash outflow in 2024, net	301	337	546	(10)	1,174

If the acquisitions had taken place at the beginning of the year 2024, net income for CEZ Group as of June 30 , 2024 would have been CZK 21,091 million and the revenues and other operating income from continuing operations would have been CZK 162,047 million. The amounts of goodwill recognized as a result of the business combinations comprise the value of expected synergies arising from the acquisitions.

From the acquisition date, the newly acquired subsidiaries have contributed the following balances to the Group's statement of income (in CZK millions):

	Instal Bud Pecyna	ACTHERM Distribuce	Group of companies of EDERA	Other	Total
Revenues and other operating
income	60	39	28	3	130
Income (loss) before other income
(expense) and income taxes	2	12	6	(23)	(3)
Net income (loss)	(2)	10	6	(24)	(10)
Net income (loss) attributable:
Equity holders of the parent	(2)	10	6	(21)	(7)
Non-controlling interests	-	-	-	(3)	(3)

5. Derivatives and Other Financial Assets

The overview of derivatives and other financial assets at June 30, 2024 and December 31, 2023 is as follows (in CZK millions):

	June 30, 2024			December 31, 2023
	Non-current assets	Current assets	Total	Non-current assets	Current assets	Total
Term deposits	67	26	93	66	-	66
Other financial receivables	4,651	192	4,843	4,912	128	5,040
Receivables from sale of subsidiaries, associates and joint-ventures	-	-	-	-	31	31
Investment in finance lease	209	47	256	213	49	262
Total financial assets at amortized cost	4,927	265	5,192	5,191	208	5,399
Equity financial assets – investments in Inven
Capital, SICAV, a.s., ČEZ sub-funds	3,480	-	3,480	3,746	-	3,746
Commodity and other derivatives	-	46,722	46,722	62	82,465	82,527
Total financial assets at fair value through profit
or loss	3,480	46,722	50,202	3,808	82,465	86,273
Veolia Energie ČR, a.s.	403	-	403	403	-	403
Other financial assets	353	7	360	271	6	277
Total equity financial assets	756	7	763	674	6	680
Cash flow hedge derivatives	17,516	20,246	37,762	20,706	22,378	43,084
Debt financial assets	-	6,398	6,398	-	6,657	6,657
Total financial assets at fair value through other
comprehensive income	18,272	26,651	44,923	21,380	29,041	50,421
Total	26,679	73,638	100,317	30,379	111,714	142,093

The decrease of short-term commodity derivatives in the first six months of 2024 is caused by physical delivery of the commodity or by the financial settlement. The decrease in the first six months of 2024 is also influenced by volatility of the market prices of emission rights, electricity and gas. With this decrease is connected the decrease of payables from commodity and other derivatives, which is disclosed in Note 9.

6. Emission rights

The composition of emission rights and green and similar certificates at June 30, 2024 and December 31, 2023 (in CZK millions):

	June 30, 2024			December 31, 2023
	Non current	Current	Total	Non current	Current	Total
Emission rights for own use	3	3,843	3,846	5	25,118	25,123
Emission rights held for trading	-	554	554	-	5,589	5,589
Green and similar certificates	-	6	6	-	112	112
Total	3	4,403	4,406	5	30,819	30,824

Non-current emission rights for own use are part of intangible assets.

7. Dividends

On June 24, 2024, the Shareholders Meeting of ČEZ, a. s., approved the dividends per share before tax of CZK 52. The total amount of dividend approved for distribution to shareholders net of treasury shares amounts to CZK 27,914 million.

8. Long-term Debt

Long-term debt at June 30, 2024 and December 31, 2023 is as follows (in CZK millions):

	June 30, 2024	December 31, 2023
3.005% Eurobonds, due 2038 (JPY 12,000 million) 2.845% Eurobonds, due 2039 (JPY 8,000 million)	1,758 1,173	1,910 1,274
4.875% Eurobonds, due 2025 (EUR 750 million)	18,954	19,173
4.375% Eurobonds, due 2042 (EUR 50 million)	1,284	1,241
4.500% Eurobonds, due 2047 (EUR 50 million)	1,282	1,238
4.383% Eurobonds, due 2047 (EUR 80 million)	2,075	2,006
3.000% Eurobonds, due 2028 (EUR 725 million)	18,364	18,433
0.875% Eurobonds, due 2026 (EUR 750 million)	18,790	18,464
2,375% Eurobonds, due 2027 (EUR 600 million)	15,037	15,020
4,250% Eurobonds, due 2032 (EUR 750 million)	18,742	-
5.625% U.S. bonds, due 2042 (USD 300 million)	7,061	6,754
4.500% Registered bonds, due 2030 (EUR 40 million)	1,019	984
4.700% Registered bonds, due 2032 (EUR 40 million)	1,010	1,021
4.270% Registered bonds, due 2047 (EUR 61 million) 3.550% Registered bonds, due 2038 (EUR 30 million)	1,544 756	1,493 760
Total bonds and debentures	108,849	89,771
Less: Current portion	(19,582)	(1,469)
Bonds and debentures, net of current portion	89,267	88,302
Long-term bank and other loans, lease liabilities:	42,752	71,825
Less: Current portion	(12,641)	(29,085)
Long-term bank and other loans, lease payables, net of current
portion	30,111	42,740
Total long-term debt	151,601	161,596
Less: Current portion	(32,223)	(30,554)
Total long-term debt, net of current portion	119,378	131,042

9. Derivatives and Other Financial Liabilities

Derivatives and other financial liabilities at June 30, 2024 and December 31, 2023 are as follows (in CZK millions):

	June 30, 2024
	Long-term liabilities	Short-term liabilities	Total
Payables from non-current assets purchase Payables to owners for profit distribution Other	320 - 818	- 28,627 1,295	320 28,627 2,113
Financial liabilities at amortized cost	1,138	29,922	31,060
Cash flow hedge derivatives Commodity and other derivatives Liabilities from put options held by non-controlling interests Contingent consideration from the acquisition of subsidiaries	3,262 - 941 493	3,455 42,001 205 340	6,717 42,001 1,146 833
Financial liabilities at fair value	4,696	46,001	50,697
Total	5,834	75,923	81,757

	December 31, 2023
	Long-term liabilities	Short-term liabilities	Total
Payables from non-current assets purchase	318	-	318
Payables to owners for profit distribution	-	904	904
Other	1,381	1,162	2,543
Financial liabilities at amortized cost	1,699	2,066	3,765
Cash flow hedge derivatives	2,579	8,455	11,034
Commodity and other derivatives	430	71,613	72,043
Liabilities from put options held by non-controlling interests Contingent consideration from the acquisition of	933	203	1,136
subsidiaries	463	203	666
Financial liabilities at fair value	4,405	80,474	84,879
Total	6,104	82,540	88,644

The decrease of short-term commodity derivatives in the first six months of 2024 is caused by physical delivery of the commodity or by the financial settlement. The decrease in the six nine months of 2024 is also influenced by volatility of the market prices of emission rights, electricity and gas. With this decrease is connected the decrease of receivables from commodity and other derivatives, which is disclosed in Note 5.

10. Short-term Loans

Short-term loans at June 30, 2024 and December 31, 2023 are as follows (in CZK millions):

	June 30, 2024	December 31, 2023
Bank loans Bank overdrafts	6,927 723	7,214 100
Total	7,650	7,314

11. Revenues and Other Operating Income

The composition of revenues and other operating income for the first six months ended June 30, 2024 and 2023 is as follows (in CZK millions):

	1-6/2024	1-6/2023
Sales of electricity:
Sales of electricity to end customers Sales of electricity through energy exchange and other	37,737	61,424
organized markets	18,400	26,992
Sales of electricity to traders	14,486	19,704
Sales to distribution and transmission companies	232	91
Other sales of electricity	14,847	6,305
Effect of hedging – presales of electricity	8,836	(15,894)
Effect of hedging – currency risk hedging	726	919
Total sales of electricity	95,264	99,541
Sales of gas, coal and heat:
Sales of gas	8,644	17,407
Sales of coal	2,010	3,798
Sales of heat	7,796	7,112
Total sales of gas, coal and heat	18,450	28,317
Total sales of electricity, heat, gas and coal	113,714	127,858
Sales of services and other revenues:
Distribution services	22,872	17,944
Other services	22,535	18,694
Rental income	112	90
Revenues from goods sold	415	559
Other revenues	840	1,898
Total sales of services and other revenues	46,774	39,185
Other operating income:
Granted green and similar certificates	-	64
Contractual fines and interest fees for delays	179	759
Gain on sale of property, plant and equipment	114	186
Gain on sale of material	113	181
Other	823	1,464
Total other operating income	1,229	2,654
Total revenues and other operating income	161,717	169,697

Revenues from contracts with customers for the six months ended June 30, 2024 and 2023 were CZK 150,814 million and CZK 181,928 million, respectively, and can be linked to the above figures as follows:

	1-6/2024	1-6/2023
Sales of electricity, heat, gas and coal Sales of services and other revenues	113,714 46,774	127,858 39,185
Total revenues	160,488	167,043
Adjustments: Effect of hedging – presales of electricity Effect of hedging – currency risk hedging Rental income	(8,836) (726) (112)	15,894 (919) (90)
Revenues from contracts with customers	150,814	181,928

12. Gains and Losses from Commodity Derivative Trading

The composition of gains and losses from commodity derivative trading for the six months ended June 30, 2024 and 2023 is as follows (in CZK millions):

	1-6/2024	1-6/2023
Gain from electricity derivative trading	4,481	5,178
Loss from gas derivative trading	(361)	(307)
Loss from oil derivative trading	(14)	(7)
Gain from coal derivative trading	7	21
Gain (loss) from emission rights derivative trading	(666)	1,046
Total gains and losses from commodity derivative trading	3,447	5,931

Reported gains and losses from derivative trading consist of trades with commodities for the purpose of speculative trading, but also trades concluded for the purpose of hedging the gross margin from electricity generation, where changes in their fair value do not enter the hedge accounting scheme mainly due to the uncertainty of the hedged deliveries of electricity from generation sources (where the expected deliveries of electricity may not be produced eventually, but trading positions on electricity and related positions for emission allowances and fuels will be closed, e.g. for deliveries from the Počerady CCGT power plant). Given the high volatility of commodity market prices, these trades have a significant impact on reported gains and losses from derivative trading.

13. Other Operating Expenses

Other operating expenses for the six months ended June 30, 2024 and 2023 are as follows (in CZK millions):

	1-6/2024	1-6/2023
Change in provisions	2,045	1,597
Levy on revenues above price caps	46	(11,149)
Other taxes and fees	(1,565)	(1,459)
Insurance	(629)	(534)
Costs related to trading of commodities	(384)	(467)
Cost of goods sold	(215)	(353)
Loss on sale of property, plant and equipment	(1)	(1)
Other	(1,149)	(1,075)
Total other operating expenses	(1,852)	(13,441)

14. Income Taxes

Tax effects relating to each component of other comprehensive income are the following (in CZK millions):

	1-6/2024		1-6/2023
	Before tax amount	Tax effect	Net of tax amount	Before tax amount	Tax effect	Net of tax amount
Change in fair value of cash flow hedges Cash flow hedges reclassified to	4,799	(3,276)	1,523	53,830	(39,424)	14,406
statement of income Change in fair value of debt	(9,815)	7,056	(2,759)	15,312	(9,923)	5,389
instruments Disposal of debt instruments	(561) 5	50 (1)	(511) 4	1,060 24	(191) (10)	869 14
Translation differences – subsidiaries	293	-	293	(122)	-	(122)
Translation differences – associates and joint-ventures	37	-	37	(327)	-	(327)
Disposal of translation differences	(28)	-	(28)	(15)	-	(15)
Share on other equity movements of associates and joint-ventures	(2)	-	(2)	(60)	-	(60)
Total	(5,272)	3,829	(1,443)	69,702	(49,548)	20,154

15. Segment Information

The Group reports its result using four reportable operating segments:

• Generation
• Distribution
• Sales
• Mining

The segments are defined across the countries in which CEZ Group operates. Segment is a functionally autonomous part of CEZ Group that serves a single part of the value chain of the Group.

The Group accounts for intersegment revenues and transfers as if the revenues or transfers were to third parties, that is, at current market prices or where the regulation applies at regulated prices.

In segment reporting, IFRS 16 is applied to external leases from the Group's perspective, but it is not applied to leases between individual operating segments, although in some cases the asset is leased to another segment internally.

The Group evaluates the performance of its segments based on earnings before interest, taxes, depreciation and amortization (EBITDA). The reconciliation of EBITDA to income before other income (expenses) and income taxes summarizes the following table (in CZK millions):

	1-6/2024	1-6/2023
Income before other income (expenses) and income
taxes	51,333	45,318
Depreciation and amortization	17,916	17,014
Impairment of property, plant and equipment and
intangible assets	28	221
Gains and losses on sale of property, plant and
equipment, net1)	(113)	(185)
EBITDA	69,164	62,368

1) Gains on sale of property, plant and equipment are presented in the statement of income as part of the line item Other operating income (Note 11). Losses on sale of property, plant and equipment are presented in the statement of income as part of the line item Other operating expenses (Note 13).

The Group follows and analyses results of individual segments also based on the ratio of Gross margin, which is defined as follows (in CZK millions):

	1-6/2024	1-6/2023
Operating income	161,717	169,697
Gains and losses from commodity derivative trading	3,447	5,931
Purchase of electricity, gas and other energies	(29,507)	(41,167)
Fuel and emission rights	(19,283)	(19,608)
Services	(18,462)	(16,539)
Capitalization of expenses to the cost of assets and
change in own inventories	2,493	3,033
Levy on revenues above price caps1)	46	(11,149)
Other2)	(2,471)	(2,034)
Gross margin	97,980	88,164

1) Levy on revenues above price caps is part of the statement of income line-item Other operating expenses (Note 13).

2) Other includes relevant part of the material costs (part of the statement of income line-item Material and supplies) and excludes part of the statement of income line-item Services, which refers to repair and maintenance services and other services that have rather overhead nature.

The following tables summarize segment information by operating segments for the six months ended June 30, 2024 and 2023 and at December 31, 2023 (in CZK millions):

June 30, 2024:	Gene ration	Distribu tion	Sales	Mining	Combined	Elimina tion	Consoli dated
Revenues and other operating income – other than intersegment	56,971	22,753	79,651	2,342	161,717	-	161,717
Revenues and other operating income – intersegment	47,012	209	8,159	5,163	60,543	(60,543)	-
Total revenues and other operating income Thereof:	103,983	22,962	87,810	7,505	222,260	(60,543)	161,717
Sales of electricity, heat, gas and coal	96,507	-	66,651	6,756	169,914	(56,200)	113,714
Sales of services and other revenues	6,660	22,800	20,707	660	50,827	(4,053)	46,774
Other operating income	816	162	452	89	1,519	(290)	1,229
Revenues and other operating income, including result from
commodity derivative trading	107,442	22,962	87,798	7,505	225,707	(60,543)	165,164
Total sales of electricity, including the result of electricity trading1)	87,397	-	54,722	-	142,119	(42,374)	99,745
Gross margin	64,775	15,905	13,177	7,457	101,314	(3,334)	97,980
EBITDA	50,808	10,436	3,783	4,145	69,172	(8)	69,164
Depreciation and amortization	(11,674)	(3,896)	(1,293)	(1,053)	(17,916)	-	(17,916)
Impairment of property, plant and equipment and intangible assets	(4)	(24)	-	-	(28)	-	(28)
Income before other income (expenses) and income taxes	39,203	6,529	2,507	3,102	51,341	(8)	51,333
Interest on debt and provisions	(6,130)	(638)	(197)	(367)	(7,332)	584	(6,748)
Interest income	1,115	237	598	376	2,326	(584)	1,742
Share of profit (loss) from associates and joint-ventures	(17)	-	22	(36)	(31)	-	(31)
Income taxes	(23,173)	(1,300)	(587)	(677)	(25,737)	11	(25,726)
Net income	18,977	4,827	1,946	2,526	28,276	(7,219)	21,057
Identifiable assets	286,002	140,336	15,298	12,597	454,233	(314)	453,919
Identifiable assets Investment in associates and joint-ventures Unallocated assets	2,837	-	304	640	3,781	-	3,781 311,441
Total assets							769,141
Capital expenditure	9,787	8,777	1,476	671	20,711	(208)	20,503

1) The item contains the line Total sales of electricity (Note 11) and the line Gain from electricity derivative trading (Note 12).

June 30, 2023:	Gene ration	Distribu tion	Sales	Mining	Combined	Elimina tion	Consoli dated
Revenues and other operating income – other than intersegment	47,537	17,890	100,161	4,109	169,697	-	169,697
Revenues and other operating income – intersegment	78,245	131	14,104	5,788	98,268	(98,268)	-
Total revenues and other operating income Thereof:	125,782	18,021	114,265	9,897	267,965	(98,268)	169,697
Sales of electricity, heat, gas and coal	118,169	-	95,177	9,225	222,571	(94,713)	127,858
Sales of services and other revenues	6,846	17,872	17,262	637	42,617	(3,432)	39,185
Other operating income	767	149	1,826	35	2,777	(123)	2,654
Revenues and other operating income, including result from
commodity derivative trading	131,976	18,021	114,616	9,897	274,510	(98,882)	175,628
Total sales of electricity, including the result of electricity trading1)	101,678	-	72,819	-	174,497	(69,778)	104,719
Gross margin	57,707	14,047	11,302	9,679	92,735	(4,571)	88,164
EBITDA	45,489	9,004	3,164	5,649	63,306	(938)	62,368
Depreciation and amortization	(11,398)	(3,568)	(1,070)	(978)	(17,014)	-	(17,014)
Impairment of property, plant and equipment and intangible assets	(1)	(7)	-	(213)	(221)	-	(221)
Income before other income (expenses) and income taxes	34,213	5,462	2,103	4,478	46,256	(938)	45,318
Interest on debt and provisions	(6,838)	(613)	(206)	(329)	(7,986)	581	(7,405)
Interest income	3,242	366	657	337	4,602	(581)	4,021
Share of profit (loss) from associates and joint-ventures	(27)	177	390	(47)	493	-	493
Income taxes	(19,592)	(991)	(294)	(875)	(21,752)	(38)	(21,790)
Net income	21,428	4,467	2,565	3,661	32,121	(9,840)	22,281
Capital expenditure	7,975	7,178	1,073	820	17,046	(118)	16,928
	Gene	Distribu				Elimina	Consoli
December 31, 2023:	ration	tion	Sales	Mining	Combined	tion	dated
Identifiable assets Investment in associates and joint-ventures Unallocated assets	288,800 2,773	135,516 -	15,104 284	12,977 680	452,397 3,737	(265) -	452,132 3,737 369,896
Total assets							825,765

1) The item contains the line Total sales of electricity (Note 11) and the line Gain from electricity derivative trading (Note 12).