ČEZ, a. s.

SEPARATE FINANCIAL STATEMENTS

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS OF MARCH 31, 2020

ČEZ, a. s. BALANCE SHEET AS OF MARCH 31, 2020

	March 31, 2020	December 31, 2019
ASSETS:
Plant in service Less accumulated depreciation and impairment	476,277 (262,459)	475,880 (258,822)
Net plant in service	213,818	217,058
Nuclear fuel, at amortized cost Construction work in progress, net	14,047 8,136	14,191 8,302
Total property, plant and equipment	236,001	239,551
Restricted financial assets, net Other non-current financial assets, net Intangible assets, net	14,313 186,734 5,849	14,303 181,201 9,014
Total other non-current assets	206,896	204,518
Total non-current assets	442,897	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	9,860 56,645 6,381 522 22,742 140,902 2,710 6,540	3,516 58,042 6,599 608 24,326 75,602 2,784 6,540
Total current assets	246,302	178,017
Total assets	689,199	622,086

	March 31, 2020	December 31, 2019
EQUITY AND LIABILITIES:
Stated capital Treasury shares Retained earnings and other reserves	53,799 (2,875) 159,822	53,799 (2,885) 152,565
Total equity	210,764	203,479
Long-term debt, net of current portion Provisions Other long-term financial liabilities Deferred tax liability	143,548 75,355 6,150 9,753	133,848 75,315 8,216 8,044
Total non-current liabilities	234,806	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	3,290 27,644 46,637 478 10,953 153,508 1,119	4,119 24,760 53,748 483 9,282 99,954 838
Total current liabilities	243,629	193,184
Total equity and liabilities	689,199	622,086

	1-3/2020	1-3/2019 *
Sales of electricity, heat and gas Sales of services and other revenues Other operating income	24,459 1,246 205	23,459 1,185 247
Total revenues and other operating income	25,910	24,891
Gains and losses from commodity derivative trading Purchase of electricity, gas and other energies Fuel and emission rights Services Salaries and wages Materials and supplies 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 Other operating expenses	5,834 (8,792) (5,055) (1,736) (1,694) (597) (26) (3,695) - (2) (273)	3,560 (10,098) (4,206) (1,639) (1,559) (457) 22 (3,636) (16) (11) (300)
Income before other income (expenses) and income taxes	9,874	6,551
Interest on debt, net of capitalized interest Interest on provisions Interest income Impairment of financial assets Other financial expenses Other financial income	(1,486) (426) 327 (2) (173) 169	(1,428) (400) 320 (1) (7) 142
Total other income (expenses)	(1,591)	(1,374)
Income before income taxes	8,283	5,177
Income taxes	(1,576)	(1,001)
Net income	6,707	4,176

	1-3/2020	1-3/2019 *
Net income	6,707	4,176
Change in fair value of cash flow hedges Cash flow hedges reclassified to statement of income Change in fair value of debt financial instruments Deferred tax related to other comprehensive income	2,098 (1,346) (54) (133)	6,983 2,080 33 (1,728)
Net other comprehensive income that may be reclassified to statement of income or to assets in subsequent periods	565	7,368
Total comprehensive income, net of tax	7,272	11,544

	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	- -	- -	- 7,341	- 27	- -	4,176 -	4,176 7,368
Total comprehensive income	-	-	7,341	27	-	4,176	11,544
Sale of treasury shares Share options Exercised and forfeited share options	- - -	215 - -	- - -	- - -	- 7 (8)	(135) - 8	80 7 -
Balance as at March 31, 2019 *	53,799	(3,319)	(11,032)	137	116	155,142	194,843
Balance as at January 1, 2020	53,799	(2,885)	(2,867)	277	(156)	155,311	203,479
Net income Other comprehensive income	- -	- -	- 609	- (44)	- -	6,707 -	6,707 565
Total comprehensive income	-	-	609	(44)	-	6,707	7,272
Effect of business combination Sale of treasury shares Exercised share options	- - -	- 28 -	- - -	- - -	3 - (1)	- (18) 1	3 10 -
Balance as at March 31, 2020	53,799	(2,857)	(2,258)	233	(154)	162,001	210,764

in CZK Millions

	1-3/2020	1-3/2019 *
OPERATING ACTIVITIES:
Income before income taxes	8,283	5,177
Adjustments of income before income taxes to cash generated from operations:
Depreciation and amortization	3,695	3,636
Amortization of nuclear fuel	1,026	986
(Gains) and losses on non-current asset retirements	(3)	3
Foreign exchange rate loss (gain)	(165)	(12)
Interest expense, interest income and dividend income	1,159	1,108
Provisions Impairment of property, plant and equipment and intangible	1,636	494
assets	-	16
Other impairment and other non-cash expenses and income	3,024	3,214
Changes in assets and liabilities:
Receivables and contract assets	2,252	8,272
Materials, supplies and fossil fuel stocks	297	343
Receivables and payables from derivatives	(8,673)	(3,037)
Other assets	2,338	(761)
Trade payables	(8,319)	(3,397)
Other liabilities	276	286
Cash generated from operations	6,826	16,328
Income taxes paid	(4)	(7)
Interest paid, net of capitalized interest	(394)	(395)
Interest received	203	201
Net cash provided by operating activities	6,631	16,127
INVESTING ACTIVITIES:
Acquisition of subsidiaries and joint-ventures	(45)	(843)
Proceeds from disposal of subsidiaries and joint-ventures and
original investments repayments	66	-
Additions to non-current assets, including capitalized interest	(2,171)	(2,260)
Proceeds from sale of non-current assets	964	11
Loans made	(249)	(1,317)
Repayments of loans	555	357
Change in restricted financial assets	(60)	(58)
Total cash used in investing activities	(940)	(4,110)

continued

	1-3/2020	1-3/2019 *
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	30,953 (32,216) (365) 1,803 (22) 10	17,332 (28,645) (307) 697 (13) 80
Net cash used in financing activities	163	(10,856)
Net effect of currency translation and allowances in cash	490	23
Net increase in cash and cash equivalents	6,344	1,184
Cash and cash equivalents at beginning of period	3,516	454
Cash and cash equivalents at end of period	9,860	1,638
Supplementary cash flow information:
Total cash paid for interest	409	409