CEZ A.S.

Quarterly Report • Nov 10, 2022

Report on CEZ Group Financial Results for Q1–Q3 2022

Nonaudited consolidated results prepared in accordance with International Financial Reporting Standards (IFRS)

November 10, 2022

www.cez.cz/en 1

Financial Highlights and Selected Events

Generation and Mining

Distribution and Sales

Highlights of Financial Results for Q1–Q3 2022 and Outlook for the Group for the full Year

Q3 2022 Financial highlights

• Operating revenues increased by 69% year-on-year to CZK 80.5 bn.
• EBITDA increased by 88% year-on-year to CZK 30.0 bn.
• Net income and Net income adjusted for extraordinary effects amounted to CZK 18.7 bn.

Q1–Q3 2022 Financial highlights

• Operating revenues increased by 35% year-on-year to CZK 211.1 bn.
• EBITDA increased by 88% year-on-year to CZK 89.3 bn.
• Net income and Net income adjusted for extraordinary effects amounted to CZK 52.3 bn.

Financial outlook for the full year 2022

• EBITDA is expected at CZK 115–125 bn.
• Net income adjusted for extraordinary effects is expected at CZK 65–75 bn.

Main causes of year-on-year change in EBITDA

GENERATION Segment (CZK +43.4 bn):

• Impact of extreme increase in market prices of commodities on the wholesale market and effect of higher sales and activation of ancillary services in the Czech Rep. (CZK +35.6 bn)
• Higher income from commodity trading on foreign markets (CZK +10.9 bn)
• Specific temporary effects (CZK -2.8 bn) mainly related to the revaluation of generation hedging contracts for delivery in Q4 2022

MINING Segment (CZK +1.8 bn):

• Higher sales due to the increase in price and volume of coal deliveries to external customers and to CEZ Group (CZK +2.5 bn)
• Higher fixed operating expenses (CZK -0.7 bn), mainly energy expenses

Main Causes of Year-On-Year Change in Net Income

		1

(CZK bn)	Q1–Q3 2021	Q1–Q3 2022	Difference	%
EBITDA	47.5	89.3	+41.8	+88%
Depreciation and amortization	-21.8	-24.3	-2.5	-11%
Impairments*	-11.9	0.2	+12.1	-
Other income and expenses	-3.0	-1.9	+1.0	+35%
Interest income (expenses)	-2.9	-1.0	+1.9	+66%
Other	-0.0	-0.9	-0.9	>200%
Income taxes	-4.1	-11.0	-6.8	-166%
Net income	6.7	52.3	+45.6	>200%
Adjusted net income	16.9	52.3	+35.4	>200%

Net Income Adjustments

▪ In Q1–Q3 2021, adjusted for impairments of fixed assets of Severočeské doly (CZK +9.2 bn) and in Poland (CZK +1.0 bn)

Impairments* (CZK +12.1 bn)

▪ Addition to impairments of fixed assets in Q1–Q3 2021 in Severočeské doly (CZK +9.2 bn), in Romania (CZK +1.1 bn), in Poland (CZK +1.0 bn), and in Bulgaria (CZK +0.8 bn)

Depreciation and Amortization (CZK -2.5 bn)

• Acceleration of depreciation and amortization of coal-fired facilities in Czechia in H2 2021 due to deterioration of regulatory conditions for long-term operation (CZK -2.4 bn)
• Increase in depreciation of coal-fired facilities in Czechia as a result of an increase in the estimated expenditure on dismantling and demolition after decommissioning (CZK -1.3 bn)
• Higher depreciation and amortization of nuclear power plants (CZK -0.2 bn) and ČEZ Distribuce (CZK -0.4 bn)
• Lower depreciation and amortization of assets at Severočeské doly (CZK +0.6 bn) reflecting additions to impairment in 2021

Other Income and Expenses (CZK +1.0 bn)

• Higher interest income (CZK +1.9 bn) due to higher liquidity on margin deposits and higher interest rates
• Revaluation of Inven Capital securities (CZK +0.5 bn)
• Higher interest on nuclear and other reserves (CZK -0.4 bn) due to rising interest rates
• Exchange rate effects and revaluation of financial derivatives (CZK -1.1 bn), mainly due to revaluation of ČEZ margin deposits on exchanges and with trading counterparties

We increase the financial outlook for the whole year 2022: EBITDA CZK 115–125 bn, adjusted net income CZK 65–75 bn

EBITDA (CZK bn)

Adjusted net income (CZK bn)

Main reasons for adjusting the financial outlook as compared to the outlook from Aug 9, 2022:

• + Income from commodity trading on foreign markets, including the use of the LNG terminal
• + Higher realization prices of electricity
• – Assumption of levy on generation revenues above price caps

Selected Prediction Risks and Opportunities:

• Availability of generating facilities
• Revaluation of commodity derivatives hedging generation positions for 2023+
• Realization prices of generated electricity and income from commodity trading
• Amount of levy on generation revenues above price caps

Dividend from 2022 earnings:

▪ The current dividend policy (60–80% of net income adjusted for extraordinary effects) indicates (if the dividend is set at the upper end of the defined range) a dividend of CZK 97 to CZK 112 per share, and therefore a shareholder income of CZK 52 to CZK 60 bn, of which CZK 36 to CZK 42 bn for the Czech state.

Framework measures have been taken at EU level to curb excessive commodity price increases and stabilize energy markets.

The initial package of measures was approved by the European Council in September. The specific solution is always primarily the responsibility of individual Member States.

Revenue from electricity production is capped for plants with variable costs lower than gas (RES, nuclear, lignite, fuel oil)

▪ the European Commission has proposed to introduce a de facto 100% taxation of electricity production above the price of 180 EUR/MWh for inframarginal sources. The price limit may be reduced by Member States. The funds collected must be used to compensate consumers or invest in cross-border interconnection. The support may be applied to small and medium-sized enterprises. Member States have the right to redistribute this income.

Exceptional tax (solidarity contribution) on the profits of mining companies and refineries (extraction of oil, gas, coal and production of refined products)

▪ 2022 and/or 2023 profits above 120% of the average of 2018–2021 income to be taxed at a minimum rate of 33%.

Reduction of consumption

▪ Member States are obliged to introduce measures to reduce electricity and gas consumption by 5% during peak hours and to aim for an overall reduction of 10% in electricity and gas consumption.

Discussed solutions in Czechia for 2023—an illustrative diagram of how end-use customers will be supported and funding assumptions

Discussed measures in the Czech Republic—Current assumptions for a solution whose specific parameters have not yet been defined/approved

Price cap for electricity and gas sales with delivery in 2023 for households and small and medium-sized enterprises (SMEs):

• Maximum end price of electricity at CZK 6/kWh incl. VAT (for gas at CZK 3/kWh incl. VAT) for households, small and medium-sized customers
• For households, the cap shall be applied to the entire consumption, for SMEs up to 80% of the maximum consumption in the last 5 years Selected open questions:
• Support for industry and how to support public companies and municipalities
• Method of compensation mechanism (reimbursement of the difference between revenues limited by the price caps and the costs associated with the procurement of the commodities, taking into account the reasonable profit of supply companies).

Levy on the part of electricity generation revenues that exceeds the defined caps in EUR/MWh

• Levy on a portion of revenues derived from defined caps in EUR/MWh for individual inframarginal generating facilities
• The deduction will be a tax deductible expense and will reduce the company's operating income

Selected open questions:

• Level of revenue caps in EUR/MWh for individual generating facilities
• The method of calculating the levy obligation and the method of payment and settlement of the levy in question over time

Windfall tax for the energy, petrochemical and banking sectors of 60% in 2023—2025

• "Reasonable Profit" to be determined based on the historical average of 2018–2021 income plus 20%
• Reasonable Profit will be taxed at a rate of 19%, profit above Reasonable Profit at a rate of 79% (60% + 19%)
• Advance tax payments for 2023 will be collected from Q3 2023 on the basis of the companies' profit in 2022

Financing

Since Sep 8 ČEZ has been using the first European LNG terminal launched since the invasion of Ukraine and can provide 1/3 of the Czech annual gas consumption

The terminal was built in a record 6 months

• Total LNG regasification capacity at 8 bn m³ gas per year
• The operator is the Dutch national company Gasunie
• ČEZ, Shell and Engie have a contract for the capacity use
• The ČEZ contract was concluded for 5 years with an annual capacity of 3 bn m³ gas per year, which corresponds to about 1/3 of the total annual gas consumption of Czechia
• The capacity is commercially managed by ČEZ. The contracts include options to cede capacity to the Czech state.

What does this mean for Czechia and ČEZ?

• This is a crucial step for Czechia's energy security, independence from Russia and an important insurance in case of gas supply restrictions from other sources, because:
  • Gas transmission routes from the Netherlands to Czechia were contracted at the same time
  • The forthcoming law assumes that ČEZ will be obliged to supply gas to customers in Czechia, including industrial companies, as a supplier of last resort
• LNG gas after regasification from the storage tanks is already used for deliveries to Czechia. (sales to traders and for filling the storages) and for trading commodities on Western European markets.
• ČEZ has already contracted LNG supplies for 2022 in the amount of approximately 800 mil m³ of gas

www.cez.cz/en 10

Other selected Events in the Past Quarter of 2022

Round 2 of the RES+ call for support for the construction of RES sources in Czechia from the Modernization Fund has been announced.

In round 2 of the RES+ Call No. 2/2022 for PV plants above 1 MWp, for which the application deadline was Oct 31, 2022, CEZ Group submitted applications for 44 projects with a total installed capacity of 1,012 MWp.

The evaluation of applications under this call is expected in H1 2023.

Crisis in the European energy sector accelerates small modular reactor (SMR) projects in Czechia

The first reactor in Czechia should be built at the Temelín NPP site, including training, service and development facilities for other European users.

On Sep 21, the South Bohemia region and ČEZ, together with its subsidiary ÚJV Řež, signed an agreement on the establishment of the South Bohemia Nuclear Park. It involves creating a platform for cooperation between ČEZ, the government and the region, which aims to create conditions for accelerating the planned construction of SMR in Czechia at the Temelín site and support communication and promotion of nuclear projects in Czechia.

Dividend payments for 2021 in the total amount of CZK 25.8 bn commenced on Nov 1.

The decision of the annual Shareholders' Meeting in June 2022 to pay dividends 3 months later than usual contributed significantly to maintaining CEZ Group's financial stability in the context of the extreme increase in electricity market prices in August and the obligation to top up margin deposits on exchanges and with trading counterparties.

The strategic objectives of VISION 2030 and CEZ Group's measures are in line with the current national priority—Energy sovereignty of Czechia

Selected current measures and steps taken by ČEZ

• We are improving the safety and efficiency of nuclear power plants with the aim of generating over 32 TWh per year.
• We have secured fuel supplies to Temelín from non-Russian sources
• We expect to receive bids for the Dukovany NNPP by Nov 30, 2022
• We are accelerating the Small Modular Reactor ("SMR") program, with the first small modular reactor to be built at Temelín site as early as 2032
• We are filling storage tanks as part of our security of supply standard obligation, we have purchased gas for the Czech Rep.'s strategic reserve
• We secured for the state a share of capacity in the LNG terminal in Eemshaven, Netherlands, with a capacity corresponding to 1/3 of Czech
• We are ensuring maximum availability of coal-fired facilities and adequate mining for medium-term increase in generation and at the same time preparing decarbonization of the generation portfolio in line with the ambitions of VISION
• We accelerate the construction of new generation capacity with a target of
• ČEZ Prodej increases the number of PV installations on rooftops
• ČEZ ESCO increases the number of PV installations for companies and
• We want to lead by example, we reduce office temperatures, we will save 15%
• We are working to get Czechia's assistance to customers as soon as possible
• We offer free payment plans to end-use customers

Development of margin deposits and indication of covering potential risk of further commodity growth from current cash resources

Development of margin deposits on exchanges and with counterparties due to current generation forward sales and lower contracted electricity price, EUA and gas prices compared to current market prices

Commodity prices for 2023 delivery	Max. Aug 26	Sep 30	Oct 31
Electricity (EUR/MWh)	984	442	368
EUA (EUR/t)	93	70	83
Gas (EUR/MWh)	311	186	133

Available liquidity (CZK bn)	as of Sep 30	as of Oct 31
Cash	79	90
Credit lines	46	47
Total liquid resources	125	137

We are succeeding in improving our ESG score in line with the VISION 2030 targets. The goal is to rank among the top 20% of energy companies by 2023.

The current ESG score always contains a time lag with respect to the time lag for the ESG status of the company to be reflected in the applicable rating. Especially for Sustainalytics, the current score mainly reflects CEZ Group's ESG status in 2019, i.e. we expect a significant improvement in the ESG score with respect to the measures already implemented in CEZ Group.

* The CDP rating agency has changed its calculation methodology (significantly tightening the score required for the relevant rating). A number of competitors have experienced a rating downgrade, so maintaining the C rating means a real improvement in CEZ Group's ESG rating.

www.cez.cz/en 14

Financial Highlights and Selected Events

Generation and Mining

Distribution and Sales

GENERATION Segment EBITDA*

EBITDA (CZK bn)	Q1–Q3/2021	Q1–Q3 2022	Difference	%	Q3/2021	Q3/2022	Difference	%
Of which emission-free generation sources:	20.4	40.9	+20.5	+101%	7.0	12.6	+5.6	+80%
Nuclear	16.4	31.6	+15.2	+93%	5.6	9.4	+3.8	+67%
Renewable	4.0	9.4	+5.3	+133%	1.5	3.3	+1.7	+115%
Emission Generating Facilities	1.8	16.6	+14.7	>200%	-0.7	7.4	+8.0	>200%
Trading	2.0	12.9	+10.9	>200%	1.7	5.5	+3.8	>200%
Specific temporary effects	-0.9	-3.6	-2.8	>200%	1.7	-4.7	-6.5	-
Total GENERATION Segment	23.4	66.8	+43.4	+186%	9.8	20.8	+11.0	+112%

Year-on-year effects Q1–Q3:

Nuclear facilities (CZK +15.2 bn):

• Trade impacts (+15.0): price impact (+15.1), lower intragroup revenues (-0.1)
• Operating effects (+0.2): operational availability of Temelín (+0.8) and Dukovany (+0.2), fixed expenses (-0.8) Renewables (CZK +5.3 bn):
• Trade effects (+5.8): price effect (+2.2), ancillary services and regulatory energy (+3.6)
• Operating effects (-0.4): hydroelectric plants in Czechia (-0.8), photovoltaic plants in Czechia (+0.3), wind power plants in Germany (+0.1)

Emission sources (CZK +14.7 bn):

• Trade effects in Czechia (+14.7): price effect (+14.0), ancillary services (+0.7)
• Operating effects in Czechia (+0.6): operating availability (-0.2), heat sales (+0.3), trading at the generating facilities (+0.7), fixed expenses (-0.2), insurance claim for the fire in Dětmarovice in 2021 (-0.2)
• Poland (-0.5) mainly lower generation margin due to the increase in the cost of coal and allowances

Trading (CZK +10.9 bn):

• Higher trading prop margin (+15.8), potential loss of gas contracts with Gazprom Export (-1.9)
• Other and consolidation impacts (-3.0) mainly prop margin realized on generation contracts for 2023+ delivery

Specific temporary effects (CZK -2.8 bn):

▪ Revaluation of hedging commodity generation contracts for delivery in Q4 2022 and other temporary effects (-3.6)

* without the divested assets in Romania and Bulgaria

▪ Temporary specific effects in 2021 (+0.9)

Year-on-year effects in Q3:

Nuclear generating facilities (CZK +3.8 bn):

• Trade impacts (CZK +4.3 bn): price impact (+4.1), higher intragroup income (+0.1)
• Operating effects (-0.5): operating availability (+0.4), fixed expenses (-0.8)

Renewables (CZK +1.7 bn):

• Trade impacts (+2.0): higher realized electricity prices (+1.0), higher revenues from ancillary services and regulatory energy (+1.0)
• Operating effects (-0.3): lower operating availability (-0.3)

Emission sources (CZK +8.0 bn):

• Trade effects in Czechia (+8.0): price effect (+7.7), ancillary services (+0.3)
• Operating effects in Czechia (+0.4): heat sales (+0.1), on-site trade (+0.2)
• Poland (-0.1): lower generation margin due to the increase in the cost of coal and emission allowances

Trading (CZK +3.8 bn):

• Higher commercial prop margin including LNG terminal utilization (+5.1)
• Increase in Gazprom Export's potential loss of gas contracts (-0.7)
• Other commercial trading and consolidation impacts (-0.6) mainly part of margin realized on generation contracts for 2023+ delivery

Specific temporary effects (CZK -6.5 bn):

• Revaluation of hedging commodity generation contracts for delivery in Q4 2022 and other temporary effects (-4.7)
• Temporary specific effects in 2021 (-1.7)

www.cez.cz/en 16 The division of EBITDA of the GENERATION segment into five sub-segments is only indicative on the basis of central allocation assumptions (in particular the allocation of ČEZ's gross margin and fixed costs of the central divisions of ČEZ) and simplified consolidation with other companies in the segment.

MINING Segment EBITDA

EBITDA (CZK bn)	Q1–Q3/2021	Q1–Q3/2022	Difference	%	Q3/2021	Q3/2022	Difference	%
Czech Republic	3.1	5.0	+1.8	+59%	1.0	1.9	+0.9	+83%

Year-on-year effects Q1–Q3 (CZK +1.8 bn):

• Higher revenues due to the increase in the price of supplies to CEZ Group (CZK +1.0 bn)
• Higher sales related to higher deliveries to external customers (CZK +1.5 bn)
• Higher fixed operating expenses (CZK -0.7 bn), mainly energy expenses

Year-on-year effects Q3 (CZK +0.9 bn):

• Higher revenues related to higher coal supplies to CEZ Group (CZK +0.3 bn)
• Higher revenues from coal sales to external customers (CZK +0.8 bn)
• Higher fixed operating expenses (CZK -0.3 bn), mainly energy expenses

Mining volume (m tons)	Q1–Q3/2021	Q1–Q3/2022	Difference	%	Q3/2021	Q3/2022	Difference	%
Czech Republic	11.0	12.9	+1.9	+17%	3.3	4.3	+1.0	+31%

Nuclear and renewable generation (TWh)

Renewables (-15%) hydro, wind, solar, biomass, biogas

Czechia hydro (-18%)

– Worse-than-average hydrometeorological conditions

Czechia biomass (-25%)

– Outages at Poříčí Power Plant (August–September)

Germany—Wind (+15%)

+ Worse-than-average weather conditions in 2021

Nuclear plants (+3%)

• + Shorter outages of both power plants
• + Increase in the achievable output of Unit 1 of Temelín NPP

Renewables (-11%)

Czechia hydro (-13%)

– Worse-than-average hydrometeorological conditions

Czechia biomass (-18%)

– Outages at Poříčí Power Plant (August–September)

Germany—Wind (+18%)

+ Worse-than-average weather conditions in 2021

Electricity generation from coal and natural gas (TWh)

Natural gas–fired generation (-28%)

– Lower generation at Počerady 2 due to commodity prices and emission allowance prices

Coal-fired generation in Poland (+2%)

+ Favorable market conditions and the impact of biomass

Coal-fired generation in Czechia (+5%)

• + Shorter outages at Prunéřov 2 and Tušimice 2 power plants
• – Termination of the Mělník 3 power plant's operation as of Aug 17, 2021 (-0.15 TWh)
• – Longer outages at the Ledvice 4 power plant

Natural-gas-fired generation (-14%)

– Lower generation at Počerady 2 due to commodity prices and emission allowance prices

Coal-fired generation in Poland (+5%)

+ Favorable market conditions and the impact of biomass

Coal-fired generation in Czechia (-0%)

• + Shorter outages at Prunéřov 2 and Tušimice 2 power plants
• – Longer outages at the Ledvice 4 power plant
• – Termination of the Mělník 3 power plant's operation as of Aug 17, 2021 (-0.15 TWh)

Emissions of CO² , SO² , and NOX in electricity and heat generation

CEZ Group's emission intensity for electricity and heat generation in Q1–Q3 2022 of 0.30 t CO2e/MWh corresponds to:

• 85% of the emissions of the new CCGT power plant
• 46% of emissions produced by the marginal generating facility determining the current electricity market prices in Germany.

Sulfur dioxide (SO² ), nitrogen oxides (NO^x ) (thousand tons)

Marginal facilities in Germany

CO2e emission intensity of electricity and heat generation (t CO2e/MWh)

New CCGT facilities

0.29 0.30

+3%

1-9/2021 1-9/2022

Q1–Q3 2021 Q1–Q3 2022

The CO2e indicator corresponds to emissions as defined in "SCOPE 1 of the GHG Protocol". In CEZ Group's conditions, these are emissions related to the combustion of fossil fuels in the generation of electricity and heat (CO² , CH⁴ , and N2O emissions) and CO² emissions from transport. The indicator also includes CH⁴ and N2O emissions from biomass combustion, CH⁴ emissions from coal mining, and HFC, PFC, and SF⁶ emissions from air conditioning and other equipment.

0.34 0.29 0.30

+0%

2020 2021 E 2022

www.cez.cz/en 20

0.00

0.20

0.20

0.00

0.40

0.40

0.60

0.80

0.80

0.60

Hedging of market risks of generation in Czechia for 2023–2025

Electricity sold in TWh (as of Sep 30)

In August, as part of liquidity risk management, it was decided to discontinue hedging market risks of generation through contracts on energy exchanges and to take measures to reduce ČEZ's trading exposure on energy exchanges.

Financial Highlights and Selected Events

Generation and Mining

Distribution and Sales

DISTRIBUTION Segment EBITDA*

1

EBITDA (CZK bn)	Q1–Q3/2021	Q1–Q3/2022	Difference	%	Q3/2021	Q3/2022	Difference	%
Czechia	13.6	13.7	+0.1	+1%	4.0	4.2	+0.2	+5%

Year-on-year effects in Q1–Q3 (CZK +0.1 bn):

• Higher revenue from activities to ensure input power and connection (CZK +0.1 bn)
• Higher invoiced contractual penalties (CZK +0.1 bn)

Year-on-year effects in Q3 (CZK +0.2 bn):

• Higher revenue from activities to ensure input power and connection (CZK +0.1 bn)
• Higher invoiced contractual penalties (CZK +0.1 bn)

Electricity distributed to end-use

customers (TWh)	Q1–Q3/2021	Q1–Q3/2022	Difference	%	Q3/2021	Q3/2022	Difference	%
Czechia**	27.0	25.8	-1.1	-4%	7.9	7.7	-0.3	-4%

* without the divested assets in Romania and Bulgaria

** DISTRIBUTION segment only. Within CEZ Group, electricity is also distributed by ČEZ Energetické služby and ČEZ LDS, which are part of the SALES segment

Electricity consumption in the distribution territory of ČEZ Distribuce decreased mainly in the residential customers segment

Temperature- and calendar-adjusted electricity consumption (TWh)

The volume of electricity distributed corresponds to the total electricity consumption in the ČEZ Distribuce area. The recalculated consumption is based on the internal model and volume of electricity distributed by ČEZ Distribuce.

The company's distribution area covers around 66% of the Czech Republic's territory, so the data are a good indicator of total nationwide electricity consumption trends.

SALES Segment EBITDA*

EBITDA (CZK bn)	Q1–Q3/2021	Q1–Q3/2022	Difference	%	Q3/2021	Q3/2022	Difference	%
Retail segment–ČEZ Prodej	3.3	2.7	-0.5	-16%	0.7	2.4	+1.7	>200%
B2B segment—of which ESCO companies:	1.1	0.7	-0.4	-38%	0.2	0.7	+0.5	>200%
Energy Services—Czechia and Slovakia	0.3	0.3	-0.1	-25%	-0.0	0.0	+0.1	-
Energy Services—Germany and other countries**	0.5	0.7	+0.3	+59%	0.1	0.3	+0.2	>200%
Commodity Sales—Czechia	0.3	-0.3	-0.6	-	0.1	0.4	+0.2	+178%
B2B segment—Other activities***	0.4	0.4	-0.1	-18%	0.0	0.0	+0.0	+24%
Total SALES Segment*	4.8	3.8	-1.0	-21%	1.0	3.1	+2.2	>200%

Year-on-year effects Q1–Q3:

Retail segment—ČEZ Prodej (CZK -0.5 bn)

• Lower gross margin on sales of commodities (CZK -1.2 bn) mainly due to an extreme increase in purchase prices in 2022 and partly compensated by temporary seasonal effects****
• Higher volume of supplies (CZK +0.4 bn)
• Refund of interest from the lawsuit with SŽDC (CZK +0.2 bn)
• Margin on non-commodity products (CZK +0.1 bn ) mainly installation of photovoltaics and heat pumps

B2B segment—ESCO companies (CZK -0.4 bn):

Energy services—Czechia and Slovakia (CZK -0.1 bn): mainly higher gas purchase costs

Energy services—Germany and others (CZK +0.3 bn): higher profitability of German and Polish companies and the impact of newly acquired companies

Commodity sales in Czechia (CZK -0.6 bn)

• Decrease in gross margin on electricity and gas sales mainly due to extreme increase in commodity purchase prices and market volatility (CZK -0.5 bn)
• The impact of the appreciation of CZK against EUR (CZK -0.1 bn), this impact is offset outside of EBITDA due to hedging
  • * without the divested assets in Romania and Bulgaria.
  • ** Poland, Italy, Austria, and other countries where ESCO activities are managed by Elevion.
  • *** Mainly telecommunications companies, ČEZ Teplárenská, and other companies in the Sales segment.

www.cez.cz/en 25 **** Prices for end-use customers are generally set the same for winter and summer, while the purchase price of electricity and gas is generally significantly higher in winter than at other times of the year. In addition, fluctuations in consumption during the year cause temporary gains or losses due to balance adjustments and deviations from the prices invoiced to customers. These seasonal effects were fundamentally different year-on-year due to the energy crisis and extreme price fluctuations in 2022.

Year-on-year effects Q3:

Retail segment—ČEZ Prodej (CZK +1.7 bn)

• Temporary seasonal effects within the year **** amplified by extreme volatility of commodity prices during Q3 2022 (CZK +1.3 bn)
• Higher volume of supplies (CZK +0.4 bn)

B2B segment—ESCO companies (CZK +0.5 bn)

• Energy services (CZK +0.3 bn): higher profitability of German and Polish companies and the impact of newly acquired companies
• Sales of commodities in Czechia (CZK +0.2 bn): mainly exchange rate effects incl. hedging

Volume of electricity and gas sold; the number of customers Czechia—Retail

Total electricity and gas supply increased by 13% year-on-year (TWh)

The number of customers increased by 15% year-on-year (service points in thousands)

• A significant impact on the end-use customer market in Czechia was the collapse of several suppliers due to the sharp increase in commodity prices in Q4 2021 and the subsequent switch of almost 1 million customers to so-called suppliers of last resort ("SLR").
• As a result, the number of ČEZ Prodej's service points increased by more than 300,000 and continued to grow due to the suspension of new customer acquisitions by most suppliers in Q1 2022.
• In addition, the increase in the volume of electricity sold is due to the change in the structure of ČEZ Prodej's portfolio (more residential customers are switching from heating with solid fuels to heat pumps).
• On the contrary, the decrease in the volume of electricity and gas supplies to households was affected by higher temperatures in 2022 and, in the case of electricity, also by the return of employees back to offices after COVID-19.

Revenues from the sale of energy services (CZK bn)

Germany—Elevion Group (+12%)

• + Organic increase +3% (+7% adjusted for exchange rate effects)
• + Acquisition of the Belectric group (Dec 16, 2021)

Czechia and Slovakia—ČEZ ESCO group (+55%)

• + Organic increase +17%
• + Acquisitions: EP Rožnov (Jul 15, 2021), CAPEXUS (Dec 13, 2021), ELIMER (Feb 24, 2022)

Other countries*—Elevion Group (+69%)

• + Organic increase + 14% (mainly Poland, Romania)
• + Acquisition of Belectric Italy, Israel, France, UK; acquisition of SOCIETA' AGRICOLA DEF S.R.L. (Jul 26, 2021), ZOHD group (Aug 27, 2021)

Germany—Elevion Group (+15%)

• + Organic increase +0% (+4% adjusted for exchange rate effects)
• + Acquisition of the Belectric group (Dec 16, 2021)

Czechia and Slovakia—ČEZ ESCO group (+55%)

• + Organic increase +24%
• + Acquisition of EP Rožnov (Jul 15, 2021), CAPEXUS (Dec 13, 2021), ELIMER (Feb 24, 2022)

Other countries*—Elevion Group (+55%)

• + Organic increase +15%
• + Acquisition of Belectric Italy, Israel, France, UK; acquisition of SOCIETA' AGRICOLA DEF S.R.L. (Jul 26, 2021), ZOHD group (Aug 27, 2021)

Annexes

Financial Results

• Total financial results
• Total operating results
• Operating results by existing and divested assets
• Operating income by segment and country
• EBITDA by segment and country
• Net income for Q3
• Status of generation margin hedging against selected price risks in Czechia
• Expected year-on-year change in EBITDA by segment

Investments, development of cash flow, debt, and financial exposure

• Investments in fixed assets (CAPEX)
• Credit frameworks and debt structure
• Change in net debt (cash flow)
• Hedging against currency and commodity risks in generation in Czechia

Market Developments, Balance Sheet, and Other Information

• Market Developments
• Electricity Procured and Sold
• Calculation of Alternative Indicators according to ESMA

Total financial results

(CZK bn)	Q1–Q3 2021	Q1–Q3 2022	Difference	%
Operating Revenues	156.0	211.1	+55.1	+35%
EBITDA	47.5	89.3	+41.8	+88%
of which: Existing assets*	44.9	89.3	+44.4	+99%
EBIT	13.8	65.2	+51.4	>200%
Net income	6.7	52.3	+45.6	>200%
Adjusted net income**	16.9	52.3	+35.4	>200%
Operating cash flows	26.1	13.1	-13.0	-50%
CAPEX	19.3	21.4	+2.0	+10%

* Excluding the divested assets. Romanian companies sold on Mar 31, 2021, and Bulgarian companies on Jul 27, 2021.

** Adjusted net income = Net income adjusted for extraordinary effects that are generally unrelated to ordinary financial performance in a given period (such as fixed asset impairments and goodwill write-off)

Total operating results

	1

		Q1–Q3 2021	Q1–Q3 2021*	Q1–Q3 2022	Difference*	%*
Electricity generation	TWh	40.1	39.7	39.6	-0.0	-0%
Electricity distributed to end-use customers	TWh	33.9	27.1	26.0	-1.1	-4%
Sales of electricity to end-use customers	TWh	21.1	14.7	16.6	+1.9	+13%
Gas distributed to end-use customers	TWh	0.5	0.5	0.5	-0.1	-12%
Sales of gas to end-use customers	TWh	4.9	4.4	5.6	+1.2	+26%
Sales of heat	thousands TJ	17.9	17.9	15.8	-2.0	-11%

* Excluding the divested assets. Romanian companies sold on Mar 31, 2021, Bulgarian companies on Jul 27, 2021.

		as of Sep 30, 2021	as of Sep 30, 2022	Difference	%
Installed capacity	GW	11.8	11.8	+0.0	+0%
Workforce headcount	thousands persons	27.2	27.5	+0.4	+1%

Operating results by existing and divested assets

Electricity generation (TWh)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Existing assets**	39.7	39.6	-0.0	-0%
of which: Czechia**	38.0	37.9	-0.1	-0%
Poland	1.5	1.5	-0.0	-0%
Germany and others****	0.2	0.2	+0.0	+21%
Divested assets*	0.4	-	-0.4	-
CEZ Group, total	40.1	39.6	-0.4	-1%

Electricity distributed to

end-use customers (TWh)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Existing assets (Czechia)	27.1	26.0	-1.1	-4%
Divested assets*	6.8	-	-6.8	-
CEZ Group, total	33.9	26.0	-7.9	-23%

customers (TWh)	Q1–Q3 2021	Q1–Q3/2022	Difference	%
Existing assets	14.7	16.6	+1.9	+13%
Divested assets*	6.5	-	-6.5	-
CEZ Group, total	21.1	16.6	-4.5	-21%

Q1–Q3/2021	Q1–Q3 2022	Difference	%
4.4	5.6	+1.2	+26%
4.3	5.6	+1.3	+31%
0.2	-	-0.2	-
0.4	-	-0.4	-
4.9	5.6	+0.7	+15%

Sale of heat (thousand TJ)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Existing assets***	17.9	15.8	-2.0	-11%
of which: Czechia***	13.4	11.4	-2.0	-15%
Poland	4.0	4.0	+0.0	+0%
Slovakia	0.4	0.4	-0.0	-10%
Divested assets*	-	-	-	-
CEZ Group, total	17.9	15.8	-2.0	-11%

* Companies sold in Romania (as of Mar 31, 2021) and Bulgaria (as of Jul 27, 2021)

** Of which in Q1–Q3 2022 0.3 TWh was generated by ČEZ Energo, which is part of the SALES Segment

*** Includes heat sales from companies classified in the GENERATION Segment and in the SALES Segment.

**** Germany, Slovakia, Italy and Austria

Operating revenues by segment and country

GENERATION (CZK bn)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Czechia	79.4	149.0	+69.6	+88%
Germany	0.4	0.5	+0.1	+23%
Poland	4.1	4.2	+0.1	+3%
Romania	1.2	-0.0	-1.2	-
Other Countries	2.2	8.0	+5.8	>200%
Intersegment eliminations	-2.2	-5.6
Total	85.0	156.0	+71.0	+83%

SALES (CZK bn)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Czechia	45.1	84.1	+39.0	+87%
Germany	10.4	11.7	+1.3	+12%
Romania	2.5	0.2	-2.3	-91%
Bulgaria	9.4	0.0	-9.3	-100%
Other Countries	2.9	4.7	+1.8	+62%
Intersegment eliminations	-0.1	-0.1
Total	70.1	100.6	+30.4	+43%

MINING (CZK bn)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Czechia	7.0	9.7	+2.7	+39%
Czechia Others 4 % Poland 2 % Germany	90 % 4 %	Operating revenues by country for Q1–Q3 2022

DISTRIBUTION (CZK bn)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Czechia	25.2	26.2	+1.0	+4%
Romania	1.5	-	-1.5	-
Bulgaria	2.9	-	-2.9	-
Intersegment eliminations	0.0	0.0
Total	29.6	26.2	-3.4	-11%

Operating revenues (CZK bn)	Q1–Q3 2022	Share
GENERATION	156.0	53%
MINING	9.7	3%
DISTRIBUTION	26.2	9%
SALES	100.6	34%
Intersegment eliminations	-81.4
Total	211.1	100%

EBITDA by segment and country

GENERATION (CZK bn)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Czechia	23.0	66.7	+43.7	+190%
Germany	0.3	0.4	+0.1	+37%
Poland	0.2	-0.3	-0.5	-
Romania	0.6	-0.0	-0.6	-
Other Countries	0.0	0.2	+0.2	>200%
Total	24.0	66.8	+42.8	+178%
Existing assets	23.4	66.8	+43.4	+186%
Divested assets	0.6	-	-0.6	-

SALES (CZK bn)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Czechia	4.2	3.0	-1.2	-28%
Germany	0.5	0.6	+0.1	+19%
Romania	0.1	0.0	-0.1	-93%
Bulgaria	0.3	0.0	-0.3	-99%
Other Countries	0.2	0.2	+0.1	+50%
Total	5.1	3.8	-1.3	-26%
Existing assets	4.8	3.8	-1.0	-21%
Divested assets	0.3	-	-0.3	-

MINING (CZK bn)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Czechia	3.1	5.0	+1.8	+59%

DISTRIBUTION (CZK bn)	Q1–Q3/2021	Q1–Q3 2022	Difference	%
Czechia	13.6	13.7	+0.1	+1%
Romania	0.5	-	-0.5	-
Bulgaria	1.1	-	-1.1	-
Total	15.3	13.7	-1.5	-10%
Existing assets	13.6	13.7	+0.1	+1%
Divested assets	1.7	-	-1.7	-

Net income for Q3

(CZK bn)	Q3/2021	Q3/2022	Difference	%
EBITDA	15.9	30.0	+14.1	+88%
Depreciation and amortization	-7.9	-9.1	-1.2	-15%
Impairments*	-0.4	0.1	+0.4	-
Other income and expenses	-1.1	0.6	+1.7	-
Interest income (expenses)	-0.9	-0.3	+0.7	+73%
Other	-0.2	0.9	+1.0	-
Income taxes	-1.4	-2.9	-1.5	-101%
Net income	5.1	18.7	+13.6	>200%
Adjusted net income	5.6	18.7	+13.0	>200%

Net Income Adjustments

▪ For Q3 2021, adjusted for additions to negative effect of impairment for fixed assets of Severočeské doly (CZK +0.5 bn)

Impairments* (CZK +0.4 bn)

▪ Additions to impairment on fixed assets in Severočeské doly in Q3 2021 (CZK +0.5 bn)

Depreciation and Amortization (CZK -1.2 bn)

• Increase in depreciation and amortization of coal-fired facilities in Czechia (CZK -0.8 bn) mainly as a result of an increase in the estimated expenditure on dismantling and demolition after decommissioning
• Higher depreciation and amortization of nuclear power plants (CZK -0.2 bn), Severočeské doly (CZK -0.1 bn) and ČEZ Distribuce (CZK -0.1 bn)

Other income and expenses (CZK +1.7 bn)

• Higher interest income (CZK +1.1 bn) due to higher cash volume (to secure margin deposits) and due to higher interest rates
• Higher interest expenses (CZK -0.4 bn) due to higher loans to secure margin deposits
• Exchange rate effects and revaluation of financial derivatives (CZK +0.8 bn)
• Revaluation of Inven Capital securities (CZK +0.5 bn)
• Higher interest on nuclear and other reserves (CZK -0.1 bn) due to rising rates

Status of generation margin hedging against selected price risks in Czechia* and expected achieved prices of generation in 2022

Electricity—share of hedged deliveries from generation in Czechia* for 2022 (as of Sep 30th)

Electricity—generation revenue hedging status

• 45.9 TWh sold at an average achieved price of 99 EUR/MWh.
• Open position assumption of 0.4 TWh

Electricity—expected achieved price of generation in 2022**

• 100% of expected electricity deliveries in Czechia* is 46.2 TWh
• Average expected price** is EUR 104 to 108/MWh.

Emission allowances—status of generation hedging in Czechia* for 2022 (as of Sep 30th)

Emission allowances—status of generation cost hedging

• 15.7 million tons of emission allowances purchased for the average price of 37 EUR/t.
• Open position assumption of 0.2 million tons

* This includes supplies from the generation of ČEZ, Energotrans, and Elektrárna Dětmarovice.

** This is the result of hedging trades and current market valuation of unsold electricity for expected generation in 2022. Some of the hedging contracts for the sale of electricity (mainly from gas and some coal-fired sources) are continuously revalued in P&L due to uncertain final deliveries. The realized price of these contracts, in which they effectively enter into the Q4 2022 results, is therefore consistent with the market prices as of Sep 30, and is therefore significantly higher than the starting price when they were entered into in the past.

www.cez.cz/en 35

Expected year-on-year change in individual business areas

GENERATION

Nuclear Facilities

• + Higher realization prices of electricity incl. hedging
• – Deduction from generation sales above the price cap set in Czechia anticipated

Renewables

+ Higher realization prices of electricity incl. hedging

Emission Sources

• + Effect of realized prices of electricity, emission allowances and natural gas on gross margin incl. hedging
• – Higher maintenance costs

Trading

+ Higher income from commodity trading

Specific effects 2021

+ Revaluation of hedging generation contracts 2022

MINING

• + Higher coal sales and higher realization prices
• – Higher fixed operating expenses, especially expenses on energy

DISTRIBUTION

• – Negative effect of correction factors
• + Higher regulatory asset base (RAB) and depreciation and amortization
• + Higher revenues from capacity reservation and connection

SALES

• – Lower margins on commodity sales due to cost price increases
• + Acquisition and organic increase in ESCO

Investments in fixed assets (CAPEX)

CAPEX (CZK bn) by segment	Q1–Q3 2021	Q1–Q3 2022
GENERATION	7.0	8.3
Of which: Nuclear fuel procurement	2.0	2.4
MINING	1.5	1.2
DISTRIBUTION	8.7	10.3
SALES	1.0	1.6
Total existing assets	18.2	21.4
Divested assets	1.1	-
TOTAL CEZ GROUP	19.3	21.4

The main reasons for the year-on-year change of existing assets:

• GENERATION:
  • Increase in investments mainly due to the implementation of the ETE—České Budějovice Thermal Feeder project, the greening of the Trmice heating plant and higher investments in the RES sector in France
  • Impact of the nuclear fuel delivery schedule
• MINING: decrease due to the delay of projects' implementation to Q4 2022 and reduction in land purchases
• DISTRIBUTION: increase mainly due to higher investments in the renewal of distribution networks and customer buildings
• SALES: higher CAPEX mainly due to the increase in assets with new lease contracts (impact of IFRS 16), higher investments in new acquisitions (Belectric Group and CAPEXUS), higher investments in ESCO mainly in Italy (conversion of biogas plants to biomethane).

Credit frameworks and debt structure as of Sep 30, 2022

Drawings on short-term bank lines and available bank-committed credit facilities

Committed bank facilities are kept as a reserve for covering unexpected expenses and to fund short-term financial needs.

CEZ Group has access to a total of CZK 48.6 bn in committed bank credit facilities, having drawn CZK 2.9 bn as of Sep 30, 2022.

The full EUR 3 bn of the loan agreement with Czechia, signed in July, has been drawn down as of Sep 30, 2022:

• EUR 1 bn due in April 2024
• EUR 1 bn due in January 2023, with the possibility to request two extensions of 6 months each
• EUR 1 bn payable in December 2022, with the possibility of repeated drawdowns, but no later than April 2024

Bond maturity profile (CZK bn)

Debt Level		as of Sep 30, 2021	as of Sep 30, 2022
Debt and loans	CZK bn	141.2	205.9
Cash and fin. assets*	CZK bn	11.5	84.2
Net debt	CZK bn	129.8	121.7
Net debt / EBITDA		2.1	1.2

* Cash and Cash Equivalents & Highly Liquid Financial Assets

Net debt increased by CZK 11 bn in Q1–Q3

• Interest, income taxes (CZK -5.9 bn): income taxes paid (CZK -4.9 bn), balance of interest paid and received (CZK -1.0 bn)
• Margin deposits (CZK -90.2 bn) temporary margin deposits on commodity exchanges and with trading counterparties due to generation pre-sales and lower contracted prices for electricity, emission allowances and gas compared to current market prices
• Other operating effects (CZK +20.4 bn): effect of cash flow hedges, including change in receivables and derivative liabilities (CZK +18.7 bn), change in emission allowances (CZK +12.0 bn), inventories of materials and fossil fuels, mainly gas inventories (CZK -23.7 bn), other operating effects and non-cash operations (CZK +13.4 bn)
• Additions to non-current assents (CZK -22.7 bn): additions to fixed assets (CAPEX) (CZK -21.4 bn), change in liabilities from fixed asset additions (CZK -0.6 bn), acquisition of Inven Capital securities (CZK -0.7 bn)
• Divestments/acquisitions (CZK -2.2 bn) acquisition of ŠKODA JS (CZK -1.3 bn), ELIMER a.s. (CZK -0.2 bn) and KABELOVÁ TELEVIZE CZ s.r.o. (CZK -0.2 bn); purchase of non-controlling interest in ÚJV Řež and HORMEN CE (CZK -0.4 bn)

Currency and Commodity Hedging of Electricity Generation in Czechia in 2023–2025

Currency Hedge of Expected EUR Cash Flow* From Electricity Generation in Czechia (as of Sep 30, 2022)

	2023	2024	2025
Total currency hedge of EUR denominated CF from generation	88%	39%	22%
Natural currency hedge (debt and interest, capital, and other expenses in EUR)	82%	25%	22%
Transaction currency hedges	6%	15%	0%

* The subject of the hedge (100%) is expected EUR generation revenues less expected EUR expenditure on emission allowances and natural gas, which are also exposed to the risk of changes in the CZK/EUR exchange rate.

The currency position for 2023–2025 is hedged at an exchange rate in the range of CZK 25.3–25.7/EUR.

Commodity hedges of expected electricity supply from generation in Czechia (as of Sep 30, 2022)

	100% of expected supply	2023	2024	2025
Total share of hedged supply	47 to 48 TWh per year	73%	44%	18%
Emission-free sources (nuclear and ČEZ RES)**	28 to 30 TWh per year	80%	53%	22%
Emission facilities—medium-term hedged**	13 to 14 TWh per year	73%	41%	13%
Emission facilities—other***	4 to 6 TWh per year	38%	-	-

** hedged over a 3-year horizon

*** gas and selected coal-fired resources which, due to the nature of generation and market conditions, are hedged only on an annual / intra-annual basis

Market developments from Jan 1, 2021 to Sep 30, 2022

Electricity balance (GWh)

	Q1 - Q3 2021	Q1 - Q3 2022	Index 2022/2021
Electricity procured	36,093	35,779	-1%
Generated in-house (gross) In-house and other consumption, including pumping in	40,071	39,633	-1%
pumped-storage plants	-3,978	-3,854	-3%
Sold to end customers	-21,142	-16,597	-21%
Sold in the wholesale market (net)	-13,045	-18,007	+38%
Sold in the wholesale market	-180,132	-118,000	-34%
Purchased in the wholesale market	167,088	99,993	-40%
Grid losses	-1,907	-1,176	-38%

Electricity generation by source (GWh)

Nuclear	21,994	22,551	+3%
Coal and lignite	12,379	12,904	+4%
Water	1,902	1,536	-19%
Biomass	694	563	-19%
Photovoltaic	110	121	+11%
Wind	526	186	-65%
Natural gas	2,465	1,771	-28%
Bio gas	2	0	-
Total	40,071	39,633	-1%

Sales of electricity to end customers (GWh)

Households	-8,518	-5,756	-32%
Commercial (low voltage)	-2,304	-1,801	-22%
Commercial and industrial (medium and high voltage)	-10,320	-9,039	-12%
Sold to end customers	-21,142	-16,597	-21%

Distribution of electricity (GWh)

	Q1 - Q3 2021	Q1 - Q3 2022	Index 2022/2021
Distribution of electricity to end customers	33,903	26,007	-23%

Electricity balance (GWh) by segment

Q 1 - Q 3 2 0 2 2	Ge t ion ne ra		D is tr i bu t ion		Sa le		E l im ina t ion s		C E Z Gr ou p
	G W h	+/-	G W h	/- +	G W h	+/-	G W h	+/-	G W h	/- +
E lec ic i d tr ty p ro cu re	3 5, 5 5 1	-1 %	0	-	2 2 9	+2 %	0	-	3 5, 7 7 9	-1 %
Ge te d in- ho ( ) ne ra us e g ros s	3 9, 3 4 7	-1 %	0	-	2 8 6	+9 %	0	-	3 9, 6 3 3	-1 %
In- ho d o t he t ion inc lu d ing ing in us e a n r c on su mp p um p ,
d-s tor lan ts p um p e ag e p	-3 7 9 7 ,	-4 %	0	-	-5 7	+5 0 %	0	-	-3 8 5 4 ,	-3 %
So l d to d c to e n us me rs	-1, 7 8 8	+3 %	0	-	-1 5, 8 7 2	-2 3 %	1, 0 6 4	-1 1 %	-1 6, 5 9 7	-2 1 %
So l d in t he ho les le ke t ( t ) w a ma r ne	-3 3, 7 6 2	-1 %	1, 1 7 6	-3 8 %	1 5, 6 4 4	-2 3 %	-1, 0 6 4	-1 1 %	-1 8, 0 0 7	+3 8 %
So l d in t he ho les le ke t w a ma r	-1 3 2, 5 4 5	% -3 1	0	-	-3 3 8 1 ,	% -4	1 7, 9 2 7	% +1 0	-1 1 8, 0 0 0	% -3 4
Pu ha d in t he ho les le ke t rc se a ma r w	9 8, 7 8 3	% -3 8	1, 1 7 6	% -3 8	1 9, 0 2 5	% -2 0	-1 8, 9 9 0	% +9	9 9, 9 9 3	% -4 0
Gr i d los se s	0	+9 1 %	-1, 1 6 7	-3 8 %	0	-	0	-	-1, 1 6 7	-3 8 %

Electricity generation by source (GWh) by segment

	Ge ion t ne ra		D is i bu ion tr t		Sa le		E l im ina ion t s		C E Z Gr ou p
	G W h	+/-	G W h	/- +	G W h	+/-	G W h	+/-	G W h	/- +
Nu lea c r	2 2, 5 5 1	+3 %	0	-	0	-	0	-	2 2, 5 5 1	+3 %
Co l a d l ig i te a n n	1 2, 9 0 4	+4 %	0	-	0	-	0	-	1 2, 9 0 4	+4 %
W ter a	1, 5 3 6	-1 9 %	0	-	0	-	0	-	1, 5 3 6	-1 9 %
B iom as s	5 4 9	-2 0 %	0	-	1 4	+1 6 5 %	0	-	5 6 3	-1 9 %
P ho tov l ta ic o	1 2 1	+1 1 %	0	-	0	-	0	-	1 2 1	+1 1 %
W in d	1 8 6	-6 5 %	0	-	0	-	0	-	1 8 6	-6 5 %
Na tur l g a as	1, 4 9 9	% -3 2	0	-	2 7 2	% +5	0	-	1, 7 7 1	% -2 8
B io g as	0	-	0	-	0	-	0	-	0	-
To ta l	3 9, 3 4 7	-1 %	0	-	2 8 6	+9 %	0	-	3 9, 6 3 3	-1 %

Sales of electricity to end customers (GWh) by segment

	Ge t ion ne ra		D is tr i bu t ion		Sa le		E l im ina t ion s		C Gr E Z ou p
	G W h	+/-	G W h	/- +	G W h	+/-	G W h	+/-	G W h	/- +
Ho ho l ds us e	0	-	0	-	6 -5 7 5 ,	-3 2 %	0	-	6 -5 7 5 ,	-3 2 %
Co ia l ( low l ) tag mm erc vo e	-5	-4 6 %	0	-	-1 9 6 7 ,	-2 2 %	0	-	-1 8 0 1 ,	-2 2 %
Co ia l a d in du ia l ( d ium d h ig h v l ) tr tag mm erc n s me a n o e	-1 7 8 3 ,	+3 %	0	-	-8 3 2 0 ,	-1 5 %	1, 0 6 4	-1 1 %	-9 0 3 9 ,	-1 2 %
So l d to d c to e n us me rs	-1, 7 8 8	+3 %	0	-	-1 5, 8 7 2	-2 3 %	1, 0 6 4	-1 1 %	-1 6, 5 9 7	-2 1 %

Electricity balance (GWh) by country

Q1 - Q 3 2 022	Cze chi a		Pol and		Ro nia ma		Bul ia gar		Ge rma ny		Oth ers		Elim ina tion s		CE Z G rou p
	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-
Ele ctr icit d y p roc ure	34, 277	+0%	1, 306	+0%	0	-	0	-	180	% +15	17	0% >20	0	-	35, 779	-1%
Ge ate d in -ho (gr ) ner use oss	37, 918	-0%	1,5 16	-0%	0	-	0	-	180	+15 %	20	+14 5%	0	-	39, 633	-1%
In-h nd oth tion , in clu din ing in ous e a er c ons um p g p um p
d-s tora lan ts pum pe ge p	-3,6 41	-3%	-21 0	-3%	0	-	0	-	0	-	-3	+21 %	0	-	-3,8 54	-3%
So ld t nd tom o e cus ers	-15 215 ,	% +14	0	-	0	-	0	-	0	-	-1, 381	% +18	0	-	-16 ,5 97	% -21
So ld i n th hol le m ark et ( net ) e w esa	-17 886 ,	-9%	-1, 306	+11 %	0	-	0	-	-18 0	+15 %	1, 365	+17 %	0	-	-18 007 ,	+38 %
Sol d in the wh ole sal ark et e m	-11 8,1 42	-35 %	-1,3 61	-5%	0	-	0	-	-18 0	+15 %	-14 3	+15 8%	1,8 25	-33 %	-11 8,0 00	-34 %
Pur cha sed in the wh ole sal ark et e m	100 ,25 6	-38 %	55	-77 %	0	-	0	-	0	-	1,5 07	+23 %	-1,8 25	-33 %	99, 993	-40 %
Gri d lo sse s	-1, 176	-6%	0	-	0	-	0	-	0	-	0	-	0	-	-1, 176	-38 %

Electricity generation by source (GWh) by country

	Cze chi a		Pol and		Ro nia ma		Bul ia gar		Ge rma ny		Oth ers		Elim ina tion s		CE Z G rou p
	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-
Nuc lea r	22, 551	+3%	0	-	0	-	0	-	0	-	0	-	0	-	22, 551	+3%
Co al a nd lign ite	11, 608	+5%	1,2 96	+2%	0	-	0	-	0	-	0	-	0	-	12, 904	+4%
Wa ter	1,5 28	-18 %	8	-1%	0	-	0	-	0	-	0	-	0	-	1,5 36	-19 %
Bio ma ss	338	-25 %	211	-11 %	0	-	0	-	0	-	14	+16 5%	0	-	563	-19 %
Pho olta ic tov	121	+14 %	0	-	0	-	0	-	0	-	0	-	0	-	121	+11 %
Win d	7	+25 %	0	-	0	-	0	-	180	+15 %	0	-	0	-	186	-65 %
Nat l ga ura s	1,7 65	-28 %	0	-	0	-	0	-	0	-	6	+10 4%	0	-	1,7 71	-28 %
Bio ga s	0	-	0	-	0	-	0	-	0	-	0	-	0	-	0	-
Tot al	37, 918	-0%	1,5 16	-0%	0	-	0	-	180	+15 %	20	+14 5%	0	-	39, 633	-1%

Sales of electricity to end customers (GWh) by country

	Cze chi a		Pol and		Ro nia ma		Bul ia gar		Ge rma ny		Oth ers		Elim ina tion s		CE Z G rou p
	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-
Ho hol ds use	56 -5,7	+5%	0	-	0	-	0	-	0	-	0	-	0	-	56 -5,7	-32 %
Co ial ( low ltag e) mm erc vo	-1,7 99	+28 %	0	-	0	-	0	-	0	-	-2	-93 %	0	-	-1,8 01	-22 %
Co ial a nd ind rial (m edi d h ig h v olta ) ust mm erc um an ge	-7,6 60	+18 %	0	-	0	-	0	-	0	-	-1,3 79	+20 %	0	-	-9,0 39	-12 %
So ld t nd tom o e cus ers	-15 215 ,	+14 %	0	-	0	-	0	-	0	-	-1, 381	+18 %	0	-	-16 ,5 97	-21 %

Distribution of electricity (GWh) by country

Q1 - Q 3 2 022	Cze chi a		Pol and		Ro nia ma		Bul ia gar		Ge rma ny		Oth ers		Elim ina tion s		CE Z G rou p
	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-	GW h	+/-
Dis trib utio f el ect ricit to e nd tom n o y cus ers	26, 007	-4%	0	-	0	-	0	-	0	-	0	-	0	-	26, 007	-23 %

Definitions and Calculations of Indicators Unspecified in IFRS

In accordance with ESMA guidelines, ČEZ provides detailed information on indicators that are not reported as standard in IFRS financial reporting framework or the components of which are not directly available from financial statements and accompanying notes to the financial statements. Such indicators represent supplementary information in respect of financial data, providing reports' users with additional information for their assessment of the financial position and performance of CEZ Group or ČEZ. In general, these indicators are also commonly used in other commercial companies, not only in the energy sector.

Indicator
Adjusted Net Income (After-Tax Income, Adjusted)	Purpose: This is a supporting indicator, intended primarily for investors, creditors, and shareholders, which allows interpreting achieved financial results with the exclusion of extraordinary, usually nonrecurring effects that are generally unrelated to ordinary financial performance and value creation in a given period.
	Definition: Net income (after-tax income) +/− additions to and reversals of impairments of property, plant, and equipment and intangible assets (including goodwill write-off) +/− additions to and reversals of impairments of developed projects +/− other extraordinary effects that are generally unrelated to ordinary financial performance and value creation in a given period +/− effects of the above on income tax.
Net Debt	Purpose: The indicator shows the real level of a company's financial debt, i.e., the carrying amount of debt net of cash, cash equivalents, and highly liquid financial assets held. The indicator is primarily used to assess the overall appropriateness of the indebtedness, e.g., in comparison with selected profit or balance sheet indicators.
	Definition: Long-Term Debt, Net of Current Portion + Current Portion of Long-Term Debt + Short-Term Loans – (Cash and Cash Equivalents + Highly Liquid Financial Assets).
	The components of the indicator, except for Highly Liquid Financial Assets, are reported individually on the balance sheet, with items related to assets held for sale are presented separately on the balance sheet.
Net Debt / EBITDA	Purpose: This indicates a company's capability to pay back its debt as well as its ability to take on additional debt to grow its business. CEZ Group uses this indicator primarily to assess the adequacy of its capital structure to the structure and stability of its expected cash flows.
	Definition: Net Debt / EBITDA. Net Debt is the amount at the end of the reported period. EBITDA is the running total for the past 12 months. And so September 30 value is calculated from Net Debt as of September 30 and EBITDA for the period from October 1 of previous year until September 30 of current year.

Most of the components used in the calculation of individual indicators are directly shown in financial statements. The components of calculations that are not included in the financial statements are usually shown directly in a company's books and are calculated as follows:

Highly Liquid Financial Assets—component of Net Debt indicator (CZK billions):

	As at Dec 31,	As at Sep 30,
	2021	2022
Current debt financial assets	0.5	1.0
Non-current debt financial assets	-	2.6
Current term deposits	0.0	0.0
Non-current term deposits	-	-
Short-term equity securities	0.0	0.0
Highly liquid financial assets, total	0.5	3.6

Adjusted Net Income indicator—calculation for periods in question:

Adjusted Net Income (After-Tax Income, Adjusted)	Unit	Q1–Q3 2021	Q1–Q3 2022
Net income	CZK billions	6.7	52.3
Impairments of property, plant, and equipment and intangible assets (including goodwill write 1) off)	CZK billions	12.2	(0.0)
Impairments of developed projects2)	CZK billions	-	-
Effects of additions to or reversals of impairments on income tax3)	CZK billions	(0.3)	(0.0)
Other extraordinary effects4)	CZK billions	(1.7)	-
Adjusted net income	CZK billions	16.9	52.3

1) Corresponds to the total value reported in the row Impairment of Property, Plant and Equipment and Intangible Assets in the Consolidated Statement of Income

2) Included in the row Other operating expenses in the Consolidated Statement of Income

3) Included in the row Income taxes in the Consolidated Statement of Income

4) The adjustment consists of a correction of adjustment of the net income by the part of impairments of property, plant, and equipment and intangible assets (including the related effect on income taxes) that relates—based on its characteristics—to the current year. This item represents impairments of non-current assets in 2021 of sold companies in Romania and Bulgaria, which reflect that net income for this period —taking into account the "Locked-box date" as defined in agreements for the sale of assets—belonged effectively to purchasers.

Totals and subtotals can differ from the sum of partial values due to rounding.