CEZ A.S.

Quarterly Report • May 14, 2019

ČEZ, a. s.

SEPARATE FINANCIAL STATEMENTS

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS OF MARCH 31, 2019

ČEZ, a. s. BALANCE SHEET AS OF MARCH 31, 2019

in CZK Millions

	March 31, 2019	December 31, 2018
ASSETS:
Plant in service Less accumulated depreciation and impairment	458,003 (248,413)	454,354 (244,830)
Net plant in service	209,590	209,524
Nuclear fuel, at amortized cost Construction work in progress, net	14,442 6,673	14,331 7,242
Total property, plant and equipment	230,705	231,097
Restricted financial assets, net Other non-current financial assets, net Intangible assets, net	13,424 179,363 4,753	13,336 177,479 4,235
Total other non-current assets	197,540	195,050
Total non-current assets	428,245	426,147
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	1,638 55,566 13 6,293 350 13,277 75,515 2,494 6,540	454 64,287 7 6,526 462 13,157 106,133 2,362 6,540
Total current assets	161,686	199,928
Total assets	589,931	626,075

ČEZ, a. s. BALANCE SHEET AS OF MARCH 31, 2019

continued

	March 31, 2019	December 31, 2018
EQUITY AND LIABILITIES:
Stated capital Treasury shares Retained earnings and other reserves	53,799 (3,319) 144,363	53,799 (3,534) 132,947
Total equity	194,843	183,212
Long-term debt, net of current portion Provisions Other long-term financial liabilities Deferred tax liability	134,793 63,010 10,197 7,268	133,026 62,971 13,776 4,539
Total non-current liabilities	215,268	214,312
Short-term loans Current portion of long-term debt Trade payables Provisions Other short-term financial liabilities Other short-term liabilities	704 7,642 45,792 7,439 117,347 896	11,709 5,590 51,208 6,889 152,544 611
Total current liabilities	179,820	228,551
Total equity and liabilities	589,931	626,075

ČEZ, a. s. STATEMENT OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2019

in CZK Millions

	1-3/2019	1-3/2018 *
Sales of electricity, heat and gas Sales of services and other revenues Other operating income	23,459 1,185 247	17,747 1,148 268
Total revenues and other operating income	24,891	19,163
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	1,552 (10,098) (4,206) (1,639) (1,559) (457) 22 (3,636) (16) (10) (300)	1,299 (7,964) (2,837) (1,579) (1,449) (447) 27 (3,706) - 5 (319)
Income before other income (expenses) and income taxes	4,544	2,193
Interest on debt, net of capitalized interest Interest on provisions Interest income Impairment of financial assets Other financial expenses Other financial income	(1,428) (400) 320 (1) (7) 142	(1,252) (389) 201 1 (18) 204
Total other income (expenses)	(1,374)	(1,253)
Income before income taxes	3,170	940
Income taxes	(620)	(183)
Net income	2,550	757

* The way of presentation was changed for 2018 year-end. The prior year figures were changed accordingly to provide comparative information on the same basis.

ČEZ, a. s. STATEMENT OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2019

in CZK Millions

	1-3/2019	1-3/2018
Net income	2,550	757
Change in fair value of cash flow hedges	8,991	811
Cash flow hedges reclassified to statement of income	2,080	1,515
Change in fair value of debt financial instruments	33	(118)
Deferred tax related to other comprehensive income	(2,110)	(420)
Net other comprehensive income that may be reclassified to
statement of income or to assets in subsequent periods	8,994	1,788
Total comprehensive income, net of tax	11,544	2,545

ČEZ, a. s. STATEMENT OF CHANGES IN EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2019

In CZK Millions

	Stated capital	Treasury shares	Cash flow hedge reserve	Debt financial instruments	Equity financial instruments and other reserves	Retained earnings	Total equity
December 31, 2017	53,799	(4,077)	(7,794)	294	78	145,207	187,507
Application of IFRS 9	-	-	-	-	-	(32)	(32)
January 1, 2018 (restated)	53,799	(4,077)	(7,794)	294	78	145,175	187,475
Net income Other comprehensive income	- -	- -	- 1,884	- (96)	- -	757 -	757 (1,788)
Total comprehensive income	-	-	1,884	(96)	-	757	2,545
Effect of merger Sale of treasury shares Share options Transfer of exercised and forfeited share options within equity	- - - -	- 193 - -	- - - -	- - - -	3 - 8 (6)	35 (119) - 6	38 74 8 -
March 31, 2018	53,799	(3,884)	(5,910)	198	83	145,854	190,140
January 1, 2019	53,799	(3,534)	(18,373)	110	117	151,093	183,212
Net income Other comprehensive income	- -	- -	- 8,967	- 27	- -	2,550 -	2,550 8,994
Total comprehensive income	-	-	8,967	27	-	2,550	11,544
Sale of treasury shares Share options Transfer of exercised and forfeited share options within equity	- - -	215 - -	- - -	- - -	- 7 (8)	(135) - 8	80 7 -
March 31, 2019	53,799	(3,319)	(9,406)	137	116	153,516	194,843

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2019

In CZK Millions

	1-3/2019	1-3/2018
OPERATING ACTIVITIES:
Income before income taxes	3,170	940
Adjustments to reconcile income before income taxes to net cash provided by operating activities:
Depreciation and amortization	3,636	3,706
Amortization of nuclear fuel	986	942
(Gains) and losses on non-current asset retirements	3	(29)
Foreign exchange rate loss (gain)	(12)	172
Interest expense, interest income and dividend income	1,108	1,052
Provisions	494	8
Impairment of property, plant and equipment and intangible assets	16	-
Other impairment and other adjustments	3,214	1,756
Changes in assets and liabilities:
Receivables and contract assets	8,272	(6,544)
Materials, supplies and fossil fuel stocks	343	536
Receivables and payables from derivatives	(1,030)	(551)
Other assets	(761)	2,246
Trade payables	(3,397)	11,908
Other liabilities	286	(1,454)
Cash generated from operations	16,328	14,688
Income taxes paid	(7)	(9)
Interest paid, net of capitalized interest	(395)	(606)
Interest received	201	242
Net cash provided by operating activities	16,127	14,315
INVESTING ACTIVITIES:
Acquisition of subsidiaries and joint-ventures	(843)	(332)
Proceeds from disposal of subsidiaries and joint-ventures	-	76
Additions to non-current assets, including capitalized interest	(2,260)	(1,501)
Proceeds from sale of non-current assets	11	10
Loans made	(1,317)	(152)
Repayment of loans	357	696
Change in restricted financial assets	(58)	(33)
Total cash used in investing activities	(4,110)	(1,236)

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2019

continued

	1-3/2019	1-3/2018
FINANCING ACTIVITIES:
Proceeds from borrowings Payments of borrowings Lease payments Change in payables/receivables from group cashpooling Dividends paid Sale of treasury shares	17,332 (28,645) (307) 697 (13) 80	20,406 (31,746) - (1,449) (15) 72
Net cash used in financing activities	(10,856)	(12,732)
Net effect of currency translation and allowances in cash	23	-
Net increase in cash and cash equivalents	1,184	347
Cash and cash equivalents at beginning of period	454	1,272
Cash and cash equivalents at end of period	1,638	1,619
Supplementary cash flow information:

Total cash paid for interest 409 634