CEZ A.S.

Quarterly Report • Aug 11, 2020

ČEZ, a. s.

SEPARATE FINANCIAL STATEMENTS

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS OF JUNE 30, 2020

ČEZ, a. s. BALANCE SHEET AS OF JUNE 30, 2020

In CZK Millions

	June 30, 2020	December 31, 2019
ASSETS:
Plant in service Less accumulated depreciation and impairment	476,537 (266,174)	475,880 (258,822)
Net plant in service	210,363	217,058
Nuclear fuel, at amortized cost Construction work in progress, net	13,172 9,883	14,191 8,302
Total property, plant and equipment	233,418	239,551
Restricted financial assets, net Other non-current financial assets, net Intangible assets, net	15,441 181,580 3,590	14,303 181,201 9,014
Total other non-current assets	200,611	204,518
Total non-current assets	434,029	444,069
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 Assets classified as held for sale, net	1,492 42,689 7,293 487 31,000 89,886 2,493 7,390	3,516 58,042 6,599 608 24,326 75,602 2,784 6,540
Total current assets	182,730	178,017
Total assets	616,759	622,086

ČEZ, a. s. BALANCE SHEET AS OF JUNE 30, 2020

Continued

	June 30, 2020	December 31, 2019
EQUITY AND LIABILITIES:
Stated capital Treasury shares Retained earnings and other reserves	53,799 (2,845) 147,843	53,799 (2,885) 152,565
Total equity	198,797	203,479
Long-term debt, net of current portion Provisions Other long-term financial liabilities Deferred tax liability	140,549 75,429 7,239 8,966	133,848 75,315 8,216 8,044
Total non-current liabilities	232,183	225,423
Short-term loans Current portion of long-term debt Trade payables Income tax payable Provisions Other short-term financial liabilities Other short-term liabilities	4,169 7,779 40,947 595 7,433 123,726 1,130	4,119 24,760 53,748 483 9,282 99,954 838
Total current liabilities	185,779	193,184
Total equity and liabilities	616,759	622,086

ČEZ, a. s. STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2020

In CZK Millions

	1-6/2020	1-6/2019 *	4-6/2020	4-6/2019 *
Sales of electricity, heat and gas Sales of services and other revenues Other operating income	41,926 2,510 710	40,858 2,455 586	17,467 1,264 505	17,399 1,270 339
Total revenues and other operating income	45,146	43,899	19,236	19,008
Gains and losses from commodity derivative trading Purchase of electricity, gas and other	6,001	4,626	167	1,066
energies Fuel and emission rights Services Salaries and wages Materials and supplies	(15,337) (8,380) (3,895) (3,535) (986)	(17,189) (8,106) (3,680) (3,264) (854)	(6,545) (3,325) (2,159) (1,841) (389)	(7,091) (3,900) (2,041) (1,705) (397)
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	1 (7,474) -	40 (7,260) (16)	27 (3,779) -	18 (3,624) -
Impairment of trade and other receivables Other operating expenses	(8) (665)	(23) (786)	(6) (392)	(12) (486)
Income before other income (expenses) and income taxes	10,868	7,387	994	836
Interest on debt, net of capitalized interest Interest on provisions Interest income Impairment of financial assets Other financial expenses Other financial income	(2,915) (852) 627 (875) (616) 11,197	(2,885) (799) 642 - (257) 13,299	(1,429) (426) 300 (873) (443) 11,028	(1,457) (399) 322 1 (250) 13,157
Total other income (expenses)	6,566	10,000	8,157	11,374
Income before income taxes	17,434	17,387	9,151	12,210
Income taxes	(1,594)	(850)	(18)	151
Net income	15,840	16,537	9,133	12,361

ČEZ, a. s. STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2020

In CZK Millions

	1-6/2020	1-6/2019 *	4-6/2020	4-6/2019 *
Net income	15,840	16,537	9,133	12,361
Change in fair value of cash flow hedges Cash flow hedges reclassified to statement	(2,798)	4,918	(4,896)	(2,065)
of income	(596)	4,265	750	2,185
Change in fair value of debt financial instruments Deferred tax related to other comprehensive income	513	270	567	237
	547	(1,796)	680	(68)
Net other comprehensive income that may
be reclassified to statement of income or to assets in subsequent periods	(2,334)	7,657	(2,899)	289
Total comprehensive income, net of tax	13,506	24,194	6,234)	12,650

ČEZ, a. s. STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2020

In CZK Millions

	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, 2019	53,799	(3,534)	(18,373)	110	117	151,093	183,212
Net income Other comprehensive income	- -	- -	- 7,438	- 219	- -	16,537 -	16,537 7,657
Total comprehensive income	-	-	7,438	219	-	16,537	24,194
Dividends Sale of treasury shares Share options Exercised and forfeited share options	- - - -	- 632 - -	- - - -	- - - -	- - 15 (15)	(12,850) (388) - 15	(12,850) 244 15 -
Balance as at June 30, 2019 *	53,799	(2,902)	(10,935)	329	117	154,407	194,815
Balance as at January 1, 2020	53,799	(2,885)	(2,867)	277	(156)	155,311	203,479
Net income Other comprehensive income	- -	- -	- (2,750)	- 416	- -	15,840 -	15,840 (2,334)
Total comprehensive income	-	-	(2,750)	416	-	15,840	13,506
Effect of business combination Dividends Sale of treasury shares Exercised and forfeited share options	- - - -	- - 40 -	- - - -	- - - -	3 - - (8)	- (18,206) (25) 8	3 (18,206) 15 -
Balance as at June 30, 2020	53,799	(2,845)	(5,617)	693	(161)	152,928	198,797

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2020

In CZK Millions

	1-6/2020	1-6/2019 *
OPERATING ACTIVITIES:
Income before income taxes	17,434	17,387
Adjustments of income before income taxes to cash generated from operations:
Depreciation and amortization	7,474	7,260
Amortization of nuclear fuel	1,975	2,019
(Gains) and losses on non-current asset retirements	(13)	(11)
Foreign exchange rate loss (gain)	(414)	247
Interest expense, interest income and dividend income	(8,403)	(10,909)
Change in provisions	(1,776)	(1,188)
Impairment of property, plant and equipment and intangible
assets	-	16
Other impairment and other non-cash expenses and income	(2,334)	3,692
Changes in assets and liabilities:
Receivables and contract assets	14,063	8,820
Materials, supplies and fossil fuel stocks	(591)	(444)
Receivables and payables from derivatives	2,993	265
Other assets	2,647	(2,038)
Trade payables	(13,923)	(7,714)
Other liabilities	288	386
Cash generated from operations	19,420	17,788
Income taxes paid	(11)	(13)
Interest paid, net of capitalized interest	(3,492)	(3,459)
Interest received	343	373
Dividends received	1,707	1,186
Net cash provided by operating activities	17,967	15,875
INVESTING ACTIVITIES:
Acquisition of subsidiaries and joint-ventures Proceeds from disposal of subsidiaries and joint-ventures and	(2,009)	(1,603)
original investments repayments	66	709
Additions to non-current assets, including capitalized interest	(4,144)	(3,853)
Proceeds from sale of non-current assets	972	1,353
Loans made	(529)	(3,690)
Repayments of loans	929	1,494
Change in restricted financial assets	(619)	(597)
Total cash used in investing activities	(5,334)	(6,187)

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2020

Continued

	1-6/2020	1-6/2019 *
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	38,487 (55,738) (736) 2,963 (30) 15	42,959 (53,856) (618) 1,856 (39) 244
Net cash used in financing activities	(15,039)	(9,454)
Net effect of currency translation and allowances in cash	382	16
Net increase (decrease) in cash and cash equivalents	(2,024)	250
Cash and cash equivalents at beginning of period	3,516	454
Cash and cash equivalents at end of period	1,492	704
Supplementary cash flow information:
Total cash paid for interest	3,651	3,591