CEZ A.S. — Interim / Quarterly Report 2016

Nov 8, 2016

BALANCE SHEET

in CZK Millions in accordance with IFRS as of September 30, 2016

1. 1. 2016 31. 12. 2015 Assets Property, plant and equipment: Plant in service 353 027 346 203 Less accumulated depreciation and impairment (214 218) (204 187) Net plant in service 138 809 142 016 Nuclear fuel, at amortized cost 13 364 12 832 Construction work in progress, net 87 879 85 909 Total property, plant and equipment 240 052 240 757 Other non-current assets: Restricted financial assets 13 345 12 662 Investments and other financial assets, net 188 277 178 692 Intangible assets, net 547 560 Total other non-current assets 202 169 191 914 Total non-current assets 442 221 432 671 Current assets: Cash and cash equivalents 4 701 2 964 Receivables, net 33 445 41 538 Income tax receivable 925 Materials and supplies, net 5 361 5 134 Fossil fuel stocks 382 564 Emission rights 647 1 874 Other financial assets, net 28 486 32 489 Other current assets 986 1 146 Total current assets 74 933 85 709 Total assets 517 154 518 380 Equity and liabilities Equity: Stated capital 53 799 53 799 Treasury shares (4 246) (4 246) Retained earnings and other reserves 161 360 171 016 Total equity 210 913 220 569 Non-current liabilities: Long-term debt, net of current portion 133 744 124 922 Provisions 50 925 49 716 Deferred tax liability 10 520 11 143 Other long-term liabilities 4 663 3 886 Total non-current liabilities 199 852 189 667 Current liabilities: Short-term loans 13 634 10 Current portion of long-term debt 2 118 10 628 Trade and other payables 82 743 87 114 Income tax payable 165 Provisions 3 333 4 195 Accrued liabilities 4 561 6 032 Total current liabilities 106 389 108 144 Total equity and liabilities 517 154 518 380

STATEMENT OF INCOME

in CZK Millions in accordance with IFRS as of September 30, 2016

	7-9/2016	1-9/2016	7-9/2015	1-9/2015
Sales of electricity	16 828	50 463	16 904	53 129
Sales of gas, heat and other revenues	1 283	5 406	1 546	6 752
Other operating income	505	956	271	753
Total revenues and other operating income	18 616	56 825	18 721	60 634
Gains and losses from commodity derivative trading, net	(360)	436	(2)	(809)
Fuel	(2 526)	(7 639)	(2 322)	(7 665)
Purchased power and related services	(8 931)	(24 442)	(8 073)	(22 519)
Repairs and maintenance	(668)	(1 565)	(604)	(1 458)
Depreciation and amortization	(3 747)	(11 091)	(3 671)	(10 978)
Impairment of property, plant and equipment and
intangible assets	1	2	12	12
Salaries and wages	(1 358)	(4 001)	(1 317)	(3 968)
Materials and supplies	(367)	(1 030)	(363)	(1 002)
Emission rights, net	(472)	(189)	23	395
Other operating expenses	(1 620)	(4 699)	(1 586)	(5 038)
Income before other income (expenses) and income taxes	(1 432)	2 607	818	7 604
Interest on debt, net of capitalized interest	(697)	(1 697)	(614)	(2 215)
Interest on provisions	(318)	(955)	(363)	(1 091)
Interest income	232	712	256	841
Foreign exchange rate gains (losses), net	(152)	(880)	(79)	(567)
Other financial expenses	(31)	(9 950)	(1 922)	(1 955)
Other financial income	(557)	24 572	90	22 971
Total other income (expenses)	(1 523)	11 802	(2 632)	17 984
Income before income taxes	(2 955)	14 409	(1 814)	25 588
Income taxes	566	(20)	(14)	(1 144)
Net income	(2 389)	14 389	(1 828)	24 444

STATEMENT OF COMPREHENSIVE INCOME

in accordance with IFRS as of September 30, 2016

in CZK Millions

	7-9/2016	1-9/2016	7-9/2015	1-9/2015
Net income	(2 389)	14 389	(1 828)	24 444
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	(1 799)	(3 087)	3 834	9 748
Cash flow hedges reclassified to income statement Change in fair value of available-for-sale financial	(150)	(416)	59	(1 552)
assets recognized in equity	107	117	178	(498)
Deferred tax related to other comprehensive income	349	643	(774)	(1 463)
Other comprehensive income, net of tax	(1 493)	(2 743)	3 297	6 235
Total comprehensive income	(3 882)	11 646	1 469	30 679

STATEMENT OF CHANGES IN EQUITY

in accordance with IFRS as of September 30, 2016

in CZK Millions

	Stated Capital	Treasury Shares	Cash flow hedge reserve	Available-for sale and other reserves	Retained Earnings	Total Equity
December 31, 2014	53 799	(4 382)	(8 008)	1 304	163 419	206 132
Net income					24 444	24 444
Other comprehensive income			6 638	(403)		6 235
Total comprehensive income	-	-	6 638	(403)	24 444	30 679
Dividends					(21 317)	(21 317)
Sale of treasury shares		136			(68)	68
Share options Transfer of forfeited share				23		23
options within equity				(52)	52	-
September 30, 2015	53 799	(4 246)	(1 370)	872	166 530	215 585
December 31, 2015	53 799	(4 246)	(121)	925	170 212	220 569
Net income					14 389	14 389
Other comprehensive income			(2 837)	94		(2 743)
Total comprehensive income	-	-	(2 837)	94	14 389	11 646
Dividends					(21 319)	(21 319)
Share options Transfer of exercised and forfeited share				17		17
options within equity				(24)	24	-
September 30, 2016	53 799	(4 246)	(2 958)	1 012	163 306	210 913

STATEMENT OF CASH FLOWS

in CZK Millions in accordance with IFRS as of September 30, 2016

	1-9/2016	1-9/2015
Operating activities:
Income before income taxes	14 409	25 588
Adjustments to reconcile income before income taxes to net cash
provided by operating activities:
Depreciation and amortization	11 091	10 978
Amortization of nuclear fuel	2 472	2 577
Gain (loss) on non-current assets retirements, net	(55)	(281)
Foreign exchange rate losses (gains), net	880	567
Interest expense, interest income and dividends income, net	(14 185)	(20 265)
Provisions	126	(3 804)
Impairment of property, plant and equipment and intangible assets	(2)	(12)
Other impairment and other adjustments	628	2 281
Changes in assets and liabilities:
Receivables	1 029	10 439
Materials, supplies and fossil fuel stocks	(201)	553
Receivables and payables from derivatives	2 045	1 201
Other current assets	3 428	3 896
Trade and other payables	(1 308)	(2 910)
Accrued liabilities	(1 224)	(4 581)
Cash generated from operations	19 133	26 227
Income taxes paid	(1 090)	549
Interest paid, net of capitalized interest	(1 707)	(2 167)
Interest received	798	862
Dividends received	18 529	21 393
Net cash provided by operating activities	35 663	46 864
Investing activities:
Acquisition of subsidiaries, associates and joint-ventures and refunds	(1 006)	292
Proceeds (refunds) from disposal of subsidiaries, associates and joint-ventures	9 202	314
Additions to non-current assets, including capitalized interest	(17 593)	(12 057)
Proceeds from sale of non-current assets	41	24
Loans made	(9 970)	(7 570)
Repayments of loans	1 609	6 057
Change in restricted financial assets	(537)	(582)
Total cash used in investing activities	(18 254)	(13 522)
Financing activities:
Proceeds from borrowings	56 943	47 221
Payments of borrowings	(48 263)	(65 232)
Proceeds from other long-term liabilities		180
Payments of other long-term liabilities	(679)
Change in payables/receivables from group cashpooling	(2 450)	(536)
Dividends paid	(21 249)	(21 253)
Sale of treasury shares		68
Net cash used in financing activities	(15 698)	(39 552)
Net effect of currency translation in cash	26	(251)
Net increase (decrease) in cash and cash equivalents	1 737	(6 461)
Cash and cash equivalents at beginning of period	2 964	9 511
Cash and cash equivalents at end of period	4 701	3 050
Supplementary cash flow information
Total cash paid for interest	4 292	4 896