CEZ A.S.

Quarterly Report • Nov 9, 2021

ČEZ, a. s.

SEPARATE FINANCIAL STATEMENTS

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS OF SEPTEMBER 30, 2021

ČEZ, a. s. BALANCE SHEET AS OF SEPTEMBER 30, 2021

	September 30, 2021	December 31, 2020
ASSETS:
Plant in service Less accumulated depreciation and impairment	480,698 (268,958)	474,973 (257,008)
Net plant in service	211,740	217,965
Nuclear fuel, at amortized cost Construction work in progress, net	12,693 10,781	13,592 10,052
Total property, plant and equipment	235,214	241,609
Restricted financial assets, net Other non-current financial assets, net Intangible assets, net	15,514 151,341 919	15,221 159,180 3,367
Total other non-current assets	167,774	177,768
Total non-current assets	402,988	419,377
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 Assets classified as held for sale, net	3,340 73,047 336 11,111 239 62,840 608,540 3,713 -	1,009 58,501 305 7,682 223 34,323 76,976 2,787 31,209
Total current assets	763,166	213,015
Total assets	1,166,154	632,392

ČEZ, a. s. BALANCE SHEET AS OF SEPTEMBER 30, 2021

continued

	September 30, 2021	December 31, 2020
EQUITY AND LIABILITIES:
Stated capital Treasury shares Retained earnings and other reserves	53,799 (1,447) 90,261	53,799 (2,845) 150,491
Total equity	142,613	201,445
Long-term debt, net of current portion Provisions Other long-term financial liabilities Deferred tax liability	95,896 91,036 27,877 38	113,929 91,125 8,728 8,235
Total non-current liabilities	214,847	222,017
Short-term loans Current portion of long-term debt Trade payables Provisions Other short-term financial liabilities Other short-term liabilities	12,685 24,074 70,465 8,077 692,600 793	800 27,514 63,093 9,096 107,583 844
Total current liabilities	808,694	208,930
Total equity and liabilities	1,166,154	632,392

ČEZ, a. s. STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

	1-9/2021	1-9/2020	7-9/2021	7-9/2020
Sales of electricity, heat and gas Sales of services and other revenues Other operating income	67,672 4,103 964	60,550 3,778 888	23,371 1,450 370	18,624 1,268 178
Total revenues and other operating income	72,739	65,216	25,191	20,070
Gains and losses from commodity derivative trading Purchase of electricity, gas and other	(175)	6,245	2,052	244
energies Fuel and emission rights Services	(24,718) (13,470) (6,407)	(22,327) (12,096) (6,152)	(9,075) (4,097) (2,476)	(6,990) (3,716) (2,257)
Salaries and wages Materials and supplies Capitalization of expenses to the cost of	(5,564) (1,509)	(5,382) (1,369)	(1,912) (455)	(1,847) (383)
assets and change in own inventories Depreciation and amortization Impairment of property, plant and equipment	89 (11,643)	23 (11,110)	27 (4,757)	22 (3,636)
and intangible assets Impairment of trade and other receivables Other operating expenses	(25) 12 (996)	- (8) (937)	- (1) (278)	- - (272)
Income before other income (expenses) and income taxes	8,333	12,103	4,219	1,235
Interest on debt, net of capitalized interest Interest on provisions Interest income Impairment of financial assets Other financial expenses Other financial income	(3,170) (1,326) 1,082 (5,067) (335) 11,577	(4,083) (1,277) 944 (1,700) (1,078) 11,497	(1,025) (442) 371 (565) (51) 2,479	(1,168) (425) 317 (825) (462) 300
Total other income (expenses)	2,761	4,303	767	(2,263)
Income (loss) before income taxes	11,094	16,406	4,986	(1,028)
Income taxes	(1,277)	(1,527)	(672)	67
Net income (loss)	9,817	14,879	4,314	(961)

ČEZ, a. s. STATEMENT OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

	1-9/2021	1-9/2020	7-9/2021	7-9/2020
Net income (loss)	9,817	14,879	4,314	(961)
Change in fair value of cash flow hedges Cash flow hedges reclassified to statement	(52,844)	(5,598)	(36,649)	(2,800)
of income	3,032	674	2,243	1,270
Change in fair value of debt financial instruments	(825)	527	(166)	14
Deferred tax related to other comprehensive income	9,621	835	6,569	288
Net other comprehensive income that may
be reclassified to statement of income or to assets in subsequent periods	(41,016)	(3,562)	(28,003)	(1,228)
Total comprehensive income, net of tax	(31,199)	11,317	(23,689)	(2,189)

ČEZ, a. s. STATEMENT OF CHANGES IN EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

	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, 2020	53,799	(2,885)	(2,867)	277	(156)	155,311	203,479
Net income Other comprehensive income	- -	- -	- (3,989)	- 427	- -	14,879 -	14,879 (3,562)
Total comprehensive income	-	-	(3,989)	427	-	14,879	11,317
Effect of business combination Dividends Sale of treasury shares Exercised and forfeited share options	- - - -	- - 40 -	- - - -	- - - -	3 - - (13)	- (18,206) (25) 13	3 (18,206) 15 -
Balance as at September 30, 2020	53,799	(2,845)	(6,856)	704	(166)	151,972	196,608
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

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

	1-9/2021	1-9/2020
OPERATING ACTIVITIES:
Income before income taxes	11,094	16,406
Adjustments of income before income taxes to cash generated from operations:
Depreciation and amortization	11,643	11,110
Amortization of nuclear fuel	2,959	3,028
(Gains) and losses on non-current asset retirements	(2,401)	(4)
Foreign exchange rate loss (gain)	(977)	(506)
Interest expense, interest income and dividend income	(5,522)	(7,753)
Change in provisions	(1,467)	(827)
Impairment of property, plant and equipment and intangible
assets	25	-
Other impairment and other non-cash expenses and income	(16,422)	(1,058)
Changes in assets and liabilities:
Receivables and contract assets	(16,384)	9,702
Materials, supplies and fossil fuel stocks	(3,451)	(884)
Receivables and payables from derivatives	15,899	6,568
Other assets	(1,828)	5,948
Trade payables	11,842	(12,231)
Other liabilities	(69)	416
Cash generated from operations	4,941	29,915
Income taxes paid	(15)	(777)
Interest paid, net of capitalized interest	(3,122)	(3,884)
Interest received	640	542
Dividends received	7,605	8,958
Net cash provided by operating activities	10,049	34,754
INVESTING ACTIVITIES:
Acquisition of subsidiaries, associates and joint-ventures Proceeds from disposal of subsidiaries, associates and joint	(1,501)	(2,028)
ventures and original investments repayments	36,205	207
Additions to non-current assets, including capitalized interest	(7,545)	(5,633)
Proceeds from sale of non-current assets	129	972
Loans made	(473)	(10,122)
Repayments of loans	2,088	1,417
Change in restricted financial assets	(951)	(671)
Net cash provided by (used in) investing activities	27,952	(15,858)

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

continued

	1-9/2021	1-9/2020
FINANCING ACTIVITIES:
Proceeds from borrowings Payments of borrowings Payments of lease liabilities Change in payables/receivables from group cashpooling Dividends paid Sale of treasury shares	191,207 (197,370) (129) (2,181) (27,645) 649	118,813 (130,892) (1,105) 8,786 (18,064) 15
Net cash used in financing activities	(35,469)	(22,447)
Net effect of currency translation and allowances in cash	(201)	395
Net increase (decrease) in cash and cash equivalents	2,331	(3,156)
Cash and cash equivalents at beginning of period	1,009	3,516
Cash and cash equivalents at end of period	3,340	360
Supplementary cash flow information:
Total cash paid for interest	3,327	4,073