CEZ A.S.

Annual / Quarterly Financial Statement • May 11, 2017

BALANCE SHEET

in CZK Millions in accordance with IFRS as of March 31, 2017

	31. 3. 2017	31. 12. 2016
Assets
Property, plant and equipment:
Plant in service	394,498	394,262
Less accumulated depreciation and impairment	(222,076)	(218,114)
Net plant in service	172,422	176,148
Nuclear fuel, at amortized cost	13,885	14,745
Construction work in progress, net	51,990	50,337
Total property, plant and equipment	238,297	241,230
Other non-current assets:
Restricted financial assets	12,930	13,290
Investments and other financial assets, net	183,186	183,885
Intangible assets, net	524	581
Total other non-current assets	196,640	197,756
Total non-current assets	434,937	438,986
Current assets:
Cash and cash equivalents	6,485	454
Receivables, net	43,382	44,413
Income tax receivable	898	571
Materials and supplies, net	5,167	5,291
Fossil fuel stocks	302	407
Emission rights	1,782	2,013
Other financial assets, net	25,475	43,013
Other current assets	1,167	1,050
Assets classified as held for sale		736
Total current assets	84,658	97,948
Total assets	519,595	536,934
Equity and liabilities
Equity:
Stated capital	53,799	53,799
Treasury shares	(4,246)	(4,246)
Retained earnings and other reserves	155,216	151,145
Total equity	204,769	200,698
Non-current liabilities:
Long-term debt, net of current portion	126,315	131,960
Provisions	54,865	55,006
Deferred tax liability	9,920	9,003
Other long-term liabilities	5,025	7,019
Total non-current liabilities	196,125	202,988
Current liabilities:
Short-term loans	7,915	7,874
Current portion of long-term debt	8,878	3,484
Trade and other payables	92,444	110,410
Income tax payable	1	1
Provisions	3,931	3,904
Accrued liabilities	5,532	7,575
Total current liabilities	118,701	133,248
Total equity and liabilities	519,595	536,934

STATEMENT OF INCOME

in accordance with IFRS as of March 31, 2017 in CZK Millions

	1-3/2017	1-3/2016
Sales of electricity	17,740	17,452
Sales of gas, heat and other revenues	2,953	2,583
Other operating income	371	401
Total revenues and other operating income	21,064	20,436
Gains and losses from commodity derivative trading, net	1,488	1,519
Fuel	(3,067)	(2,886)
Purchased power and related services	(9,110)	(8,047)
Repairs and maintenance	(412)	(351)
Depreciation and amortization	(4,085)	(3,664)
Impairment of property, plant and equipment and intangible assets		2
Salaries and wages	(1,357)	(1,261)
Materials and supplies	(385)	(304)
Emission rights, net	101	363
Other operating expenses	(648)	(1,384)
Income before other income (expenses) and income taxes	3,589	4,423
Interest on debt, net of capitalized interest	(850)	(506)
Interest on provisions	(351)	(318)
Interest income	169	245
Foreign exchange rate gains (losses), net	(105)	(198)
Other financial expenses	(3)	114
Other financial income	427	15
Total other income (expenses)	(713)	(648)
Income before income taxes	2,876	3,775
Income taxes	(517)	(668)
Net income	2,359	3,107

STATEMENT OF COMPREHENSIVE INCOME

in accordance with IFRS as of March 31, 2017 in CZK Millions

	1-3/2017	1-3/2016
Net income	2,359	3,107
Other comprehensive income - items that may be reclassified subsequently to statement of income or to assets:
Change in fair value of cash flow hedges recognized in equity	1,787	1,636
Cash flow hedges reclassified to income statement Change in fair value of available-for-sale financial	722	593
assets recognized in equity	(403)	39
Deferred tax related to other comprehensive income	(400)	(431)
Other comprehensive income, net of tax	1,706	1,837
Total comprehensive income, net of tax	4,065	4,944

STATEMENT OF CHANGES IN EQUITY

in accordance with IFRS as of March 31, 2017

in CZK Millions

	Stated Capital	Treasury Shares	Cash flow hedge reserve	Available-for sale and other reserves	Retained Earnings	Total Equity
December 31, 2015	53,799	(4,246)	(121)	925	170,212	220,569
Net income					3,107	3,107
Other comprehensive income			1,805	32		1,837
Total comprehensive income	-	-	1,805	32	3,107	4,944
Share options Transfer of forfeited share				6		6
options within equity				(6)	6	-
March 31, 2016	53,799	(4,246)	1,684	957	173,325	225,519
December 31, 2016	53,799	(4,246)	(7,536)	926	157,755	200,698
Net income					2,359	2,359
Other comprehensive income			2,033	(327)		1,706
Total comprehensive income	-	-	2,033	(327)	2,359	4,065
Share options				6		6
Transfer of exercised and forfeited share
options within equity				(1)	1	-
March 31, 2017	53,799	(4,246)	(5,503)	604	160,115	204,769

STATEMENT OF CASH FLOWS

in CZK Millions in accordance with IFRS as of March 31, 2017

	1-3/2017	1-3/2016
Operating activities:
Income before income taxes	2,876	3,775
Adjustments to reconcile income before income taxes to net cash
provided by operating activities:
Depreciation and amortization	4,085	3,664
Amortization of nuclear fuel	915	955
Gain (loss) on non-current assets retirements, net	(115)	(7)
Foreign exchange rate losses (gains), net	105	198
Interest expense, interest income and dividends income, net	472	261
Provisions	(170)	(1,450)
Impairment of property, plant and equipment and intangible assets		(2)
Other impairment and other adjustments	(241)	(197)
Changes in assets and liabilities:
Receivables	3,663	5,922
Materials, supplies and fossil fuel stocks	231	405
Receivables and payables from derivatives	(2,639)	(604)
Other current assets	462	2,485
Trade and other payables	2,569	(4,308)
Accrued liabilities	(2,723)	(783)
Cash generated from operations	9,490	10,314
Income taxes received (paid)	(327)	(298)
Interest paid, net of capitalized interest	(385)	(199)
Interest received	222	331
Dividends received	208	3,454
Net cash provided by operating activities	9,208	13,602
Investing activities:
Acquisition of subsidiaries, associates and joint-ventures and refunds	(273)
Proceeds from disposal of subsidiaries, associates and joint-ventures
including liquidation distribution received	943
Additions to non-current assets, including capitalized interest	(2,637)	(3,046)
Proceeds from sale of non-current assets	79	32
Loans made	(2,270)	(8,233)
Repayments of loans	904	328
Change in restricted financial assets	(37)	(43)
Total cash used in investing activities	(3,291)	(10,962)
Financing activities:
Proceeds from borrowings	36,927	10,167
Payments of borrowings	(37,222)	(4,114)
Decreases of other long-term liabilities		(679)
Change in payables/receivables from group cashpooling	423	9,826
Dividends paid	(39)	(35)
Net cash used in financing activities	89	15,165
Net effect of currency translation in cash	25	12
Net increase (decrease) in cash and cash equivalents	6,031	17,817
Cash and cash equivalents at beginning of period	454	2,964
Cash and cash equivalents at end of period	6,485	20,781
Supplementary cash flow information
Total cash paid for interest	600	576