CEZ A.S.

Quarterly Report • Nov 10, 2022

ČEZ, a. s.

SEPARATE FINANCIAL STATEMENTS

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS OF SEPTEMBER 30, 2022

ČEZ, a. s. BALANCE SHEET AS OF SEPTEMBER 30, 2022

	September 30, 2022	December 31, 2021
ASSETS:
Plant in service Less accumulated depreciation and impairment	494,032 (283,788)	489,211 (275,015)
Net plant in service	210,244	214,196
Nuclear fuel, at amortized cost Construction work in progress, net	11,440 13,621	13,021 11,478
Total property, plant and equipment	235,305	238,695
Restricted financial assets, net Other non-current financial assets, net Intangible assets, net Investment properties, net Deferred tax assets	14,916 162,967 997 412 21,594	15,040 147,580 1,047 406 6,843
Total other non-current assets	200,886	170,916
Total non-current assets	436,191	409,611
Cash and cash equivalents, net Trade receivables, net Income tax receivable Materials and supplies, net Fossil fuel stocks Emission rights Other current financial assets, net Other current assets, net	76,959 207,911 532 29,748 254 6,290 808,225 6,418	20,804 136,039 - 10,415 200 14,192 515,488 4,141
Total current assets	1,136,337	701,279
Total assets	1,572,528	1,110,890

ČEZ, a. s. BALANCE SHEET AS OF SEPTEMBER 30, 2022

continued

	September 30, 2022	December 31, 2021
EQUITY AND LIABILITIES:
Stated capital Treasury shares Retained earnings and other reserves	53,799 (1,334) (16,997)	53,799 (1,423) 64,052
Total equity	35,468	116,428
Long-term debt, net of current portion Provisions Other long-term financial liabilities	132,078 103,767 81,831	89,189 97,707 34,173
Total non-current liabilities	317,676	221,069
Short-term loans Current portion of long-term debt Trade payables Income tax payable Provisions Other short-term financial liabilities Other short-term liabilities	51,954 14,021 59,553 - 16,936 1,074,326 2,594	25,115 14,999 76,950 1,696 11,095 641,849 1,689
Total current liabilities	1,219,384	773,393
Total equity and liabilities	1,572,528	1,110,890

ČEZ, a. s. STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

	1-9/2022	1-9/2021	7-9/2022	7-9/2021
Sales of electricity, heat and gas Sales of services and other revenues Other operating income	134,734 8,652 5,266	67,672 4,103 964	53,963 2,896 465	23,371 1,450 370
Total revenues and other operating income	148,652	72,739	57,324	25,191
Gains and losses from commodity derivative trading Purchase of electricity, gas and other	17,998	(175)	2,158	2,052
energies	(61,314)	(24,718)	(25,335)	(9,075)
Fuel and emission rights	(28,299)	(13,470)	(10,509)	(4,097)
Services Salaries and wages	(6,613) (6,576)	(6,407) (5,564)	(2,472) (2,443)	(2,476) (1,912)
Materials and supplies Capitalization of expenses to the cost of	(1,602)	(1,509)	(481)	(455)
assets and change in own inventories	112	89	35	27
Depreciation and amortization Impairment of property, plant and equipment	(13,312)	(11,643)	(4,790)	(4,757)
and intangible assets	22	(25)	24	-
Impairment of trade and other receivables Other operating expenses	(138) (1,066)	12 (996)	(124) (233)	(1) (278)
Income before other income (expenses) and
income taxes	47,864	8,333	13,154	4,219
Interest on debt, net of capitalized interest Interest on provisions Interest income	(4,276) (1,668) 3,007	(3,170) (1,326) 1,082	(1,931) (556) 1,511	(1,025) (442) 371
Impairment of financial assets	(60)	(5,067)	(105)	(565)
Other financial expenses	(2,928)	(335)	(1,210)	(51)
Other financial income	10,418	11,577	2,058	2,479
Total other income (expenses)	4,493	2,761	(233)	767
Income before income taxes	52,357	11,094	12,921	4,986
Income taxes	(8,502)	(1,277)	(2,468)	(672)
Net income	43,855	9,817	10,453	4,314

ČEZ, a. s. STATEMENT OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

	1-9/2022	1-9/2021	7-9/2022	7-9/2021
Net income	43,855	9,817	10,453	4,314
Change in fair value of cash flow hedges Cash flow hedges reclassified to statement	(185,678)	(52,844)	(75,776)	(36,649)
of income	64,499	3,032	33,239	2,243
Change in fair value of debt financial instruments	(1,203)	(825)	(31)	(166)
Deferred tax related to other comprehensive income	23,253	9,621	8,088	6,569
Net other comprehensive income that may
be reclassified to statement of income or to assets in subsequent periods	(99,129)	(41,016)	(34,480)	(28,003)
Total comprehensive income, net of tax	(55,274)	(31,199)	(24,027)	(23,689)

ČEZ, a. s. STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

	Stated capital	Treasury shares	Cash flow hedge reserve	Debt financial instruments	Equity financial instruments and other reserves	Retained earnings	Total equity
Balance as at January 1, 2021	53,799	(2,845)	(7,146)	441	(1,018)	158,214	201,445
Net income Other comprehensive income	- -	- -	- (40,348)	- (668)	- -	9,817 -	9,817 (41,016)
Total comprehensive income	-	-	(40,348)	(668)	-	9,817	(31,199)
Effect of merger Dividends Sale of treasury shares Exercised and forfeited share options	- - - -	- - 1,398 -	- - - -	- - - -	30 - - (54)	(403) (27,909) (749) 54	(373) (27,909) 649 -
Balance as at September 30, 2021	53,799	(1,447)	(47,494)	(227)	(1,042)	139,024	142,613
Balance as at January 1, 2022	53,799	(1,423)	(67,248)	(652)	(1,687)	133,639	116,428
Net income Other comprehensive income	- -	- -	- (98,155)	- (974)	- -	43,855 -	43,855 (99,129)
Total comprehensive income	-	-	(98,155)	(974)	-	43,855	(55,274)
Dividends Sale of treasury shares Exercised and forfeited share options	- - -	- 89 -	- - -	- - -	- - (4)	(25,727) (48) 4	(25,727) 41 -
Balance as at September 30, 2022	53,799	(1,334)	(165,403)	(1,626)	(1,691)	151,723	35,468

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

	1-9/2022	1-9/2021
OPERATING ACTIVITIES:
Income before income taxes	52,357	11,094
Adjustments of income before income taxes to cash generated from operations:
Depreciation and amortization	13,312	11,643
Amortization of nuclear fuel	2,881	2,959
(Gains) and losses on non-current asset retirements	(21)	(2,401)
Foreign exchange rate loss (gain)	2,765	(977)
Interest expense, interest income and dividend income	(6,177)	(5,522)
Provisions	5,217	(1,467)
Impairment of property, plant and equipment and intangible
assets	(22)	25
Other non-cash expenses and income including valuation
allowances	68,080	(16,422)
Changes in assets and liabilities:
Receivables and contract assets	(77,289)	(16,384)
Materials, supplies and fossil fuel stocks	(19,421)	(3,451)
Receivables and payables from derivatives	(45,840)	15,899
Other assets	4,308	(1,828)
Trade payables	(16,098)	11,842
Other liabilities	903	(69)
Cash generated from operations	(15,045)	4,941
Income taxes paid	(2,229)	(15)
Interest paid, net of capitalized interest	(4,123)	(3,122)
Interest received	2,453	640
Dividends received	7,446	7,605
Net cash flow from operating activities	(11,498)	10,049
INVESTING ACTIVITIES:
Acquisition of subsidiaries, associates and joint-ventures Proceeds from disposal of subsidiaries, associates and joint	(3,081)	(1,501)
ventures and original investments repayments	909	36,205
Additions to non-current assets, including capitalized interest	(11,026)	(7,545)
Proceeds from sale of non-current assets	901	129
Loans made	(5,000)	(473)
Repayments of loans	1,272	2,088
Change in restricted financial assets	(1,164)	(951)
Net cash flow from investing activities	(17,189)	27,952

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2022

continued

	1-9/2022	1-9/2021
FINANCING ACTIVITIES:
Proceeds from borrowings Payments of borrowings Payments of lease liabilities Proceeds from other long-term liabilities Payments of other long-term liabilities Change in payables/receivables from Group cashpooling Dividends paid Sale of treasury shares	271,709 (201,239) (131) 16 (2) 15,040 (86) 42	191,207 (197,370) (129) - - (2,181) (27,645) 649
Net cash flow from financing activities	85,349	(35,469)
Net effect of currency translation and allowances in cash	(507)	(201)
Net increase in cash and cash equivalents	56,155	2,331
Cash and cash equivalents at beginning of period	20,804	1,009
Cash and cash equivalents at end of period	76,959	3,340
Supplementary cash flow information:
Total cash paid for interest	4,334	3,327