CEZ A.S.

Quarterly Report • Aug 9, 2022

ČEZ, a. s.

SEPARATE FINANCIAL STATEMENTS

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

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

	June 30, 2022	December 31, 2021
ASSETS:
Plant in service Less accumulated depreciation and impairment	489,791 (283,006)	489,211 (275,015)
Net plant in service	206,785	214,196
Nuclear fuel, at amortized cost Construction work in progress, net	12,298 12,175	13,021 11,478
Total property, plant and equipment	231,258	238,695
Restricted financial assets, net Other non-current financial assets, net Intangible assets, net Investment properties, net Deferred tax assets	14,878 151,679 961 395 15,974	15,040 147,580 1,047 406 6,843
Total other non-current assets	183,887	170,916
Total non-current assets	415,145	409,611
Cash and cash equivalents, net Trade receivables, net Materials and supplies, net Fossil fuel stocks Emission rights Other current financial assets, net Other current assets, net	41,337 119,018 17,387 230 9,119 787,317 7,142	20,804 136,039 10,415 200 14,192 515,488 4,141
Total current assets	981,550	701,279
Total assets	1,396,695	1,110,890

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

continued

	June 30, 2022	December 31, 2021
EQUITY AND LIABILITIES:
Stated capital Treasury shares Retained earnings and other reserves	53,799 (1,354) 7,001	53,799 (1,423) 64,052
Total equity	59,446	116,428
Long-term debt, net of current portion Provisions Other long-term financial liabilities	108,418 97,840 73,440	89,189 97,707 34,173
Total non-current liabilities	279,698	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	1,601 13,046 54,505 1,679 13,191 971,115 2,414	25,115 14,999 76,950 1,696 11,095 641,849 1,689
Total current liabilities	1,057,551	773,393
Total equity and liabilities	1,396,695	1,110,890

ČEZ, a. s. STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2022

	1-6/2022	1-6/2021	4-6/2022	4-6/2021
Sales of electricity, heat and gas Sales of services and other revenues Other operating income	80,771 5,756 4,801	44,301 2,653 594	30,406 3,056 387	19,550 1,364 239
Total revenues and other operating income	91,328	47,548	33,849	21,153
Gains and losses from commodity derivative trading Purchase of electricity, gas and other	15,840	(2,227)	2,802	(1,124)
energies Fuel and emission rights Services Salaries and wages Materials and supplies	(35,979) (17,790) (4,141) (4,133) (1,121)	(15,643) (9,373) (3,931) (3,652) (1,054)	(14,836) (8,300) (2,357) (2,228) (631)	(6,963) (4,060) (2,357) (1,923) (602)
Capitalization of expenses to the cost of assets and change in own inventories Depreciation and amortization Impairment of property, plant and equipment and intangible assets Impairment of trade and other receivables	77 (8,522) (2) (14)	62 (6,886) (25) 13	39 (4,265) (2) (12)	31 (3,685) - 21
Other operating expenses	(833)	(718)	(454)	(393)
Income before other income (expenses) and income taxes	34,710	4,114	3,605	98
Interest on debt, net of capitalized interest Interest on provisions Interest income Impairment of financial assets Other financial expenses Other financial income	(2,345) (1,112) 1,496 45 (1,718) 8,360	(2,145) (884) 711 (4,502) (284) 9,098	(1,247) (556) 950 50 657 7,932	(1,049) (442) 362 (4,508) (278) 8,372
Total other income (expenses)	4,726	1,994	7,786	2,457
Income before income taxes	39,436	6,108	11,391	2,555
Income taxes	(6,034)	(605)	(701)	69
Net income	33,402	5,503	10,690	2,624

ČEZ, a. s. STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2022

	1-6/2022	1-6/2021	4-6/2022	4-6/2021
Net income	33,402	5,503	10,690	2,624
Change in fair value of cash flow hedges Cash flow hedges reclassified to statement	(109,902)	(16,195)	(68,189)	(10,488)
of income	31,260	789	16,591	1,307
Change in fair value of debt financial instruments	(1,172)	(659)	(636)	45
Deferred tax related to other comprehensive income	15,165	3,052	9,925	1,736
Net other comprehensive income that may
be reclassified to statement of income or to assets in subsequent periods	(64,649)	(13,013)	(42,309)	(7,400)
Total comprehensive income, net of tax	(31,247)	(7,510)	(31,619)	(4,776)

ČEZ, a. s. STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 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	- -	- -	- (12,479)	- (534)	- -	5,503 -	5,503 (13,013)
Total comprehensive income	-	-	(12,479)	(534)	-	5,503	(7,510)
Effect of merger Dividends Sale of treasury shares Exercised and forfeited share options	- - - -	- - 1,398 -	- - - -	- - - -	30 - - (53)	(403) (27,909) (749) 53	(373) (27,909) 649 -
Balance as at June 30, 2021	53,799	(1,447)	(19,625)	(93)	(1,041)	134,709	166,302
Balance as at January 1, 2022	53,799	(1,423)	(67,248)	(652)	(1,687)	133,639	116,428
Net income Other comprehensive income	- -	- -	- (63,700)	- (949)	- -	33,402 -	33,402 (64,649)
Total comprehensive income	-	-	(63,700)	(949)	-	33,402	(31,247)
Dividends Sale of treasury shares Exercised and forfeited share options	- - -	- 69 -	- - -	- - -	- - (3)	(25,767) (37) 3	(25,767) 32 -
Balance as at June 30, 2022	53,799	(1,354)	(130,948)	(1,601)	(1,690)	141,240	59,446

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2022

	1-6/2022	1-6/2021
OPERATING ACTIVITIES:
Income before income taxes	39,436	6,108
Adjustments of income before income taxes to cash generated from operations:
Depreciation and amortization	8,522	6,886
Amortization of nuclear fuel	1,930	1,966
(Gains) and losses on non-current asset retirements	(74)	(169)
Foreign exchange rate loss (gain)	1,665	(749)
Interest expense, interest income and dividend income	(6,597)	(6,189)
Provisions	2,044	(2,309)
Impairment of property, plant and equipment and intangible
assets	2	25
Other non-cash expenses and income including valuation
allowances	31,991	(14,036)
Changes in assets and liabilities:
Receivables and contract assets	10,609	15,476
Materials, supplies and fossil fuel stocks	(7,035)	152
Receivables and payables from derivatives	(32,570)	13,820
Other assets	6,064	(4,577)
Trade payables	(21,550)	(4,630)
Other liabilities	723	(87)
Cash generated from operations	35,160	11,687
Income taxes paid	(18)	(327)
Interest paid, net of capitalized interest	(2,767)	(2,438)
Interest received	1,204	403
Dividends received	-	515
Net cash flow from operating activities	33,579	9,840
INVESTING ACTIVITIES:
Acquisition of subsidiaries, associates and joint-ventures Proceeds from disposal of subsidiaries, associates and joint	(2,381)	(668)
ventures and original investments repayments	512	25,791
Additions to non-current assets, including capitalized interest	(5,254)	(4,872)
Proceeds from sale of non-current assets	414	45
Loans made	-	(474)
Repayments of loans	981	1,588
Change in restricted financial assets	(1,022)	(907)
Net cash flow from investing activities	(6,750)	20,503

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2022

continued

	1-6/2022	1-6/2021
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	101,931 (106,553) (88) 16 (1) (1,498) (71) 32	90,276 (104,374) (88) - - 970 (43) 649
Net cash flow from financing activities	(6,232)	(12,610)
Net effect of currency translation and allowances in cash	(64)	(220)
Net increase in cash and cash equivalents	20,533	17,513
Cash and cash equivalents at beginning of period	20,804	1,009
Cash and cash equivalents at end of period	41,337	18,522
Supplementary cash flow information:
Total cash paid for interest	2,934	2,594