CEZ A.S.

Quarterly Report • Nov 10, 2020

ČEZ, a. s.

SEPARATE FINANCIAL STATEMENTS

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

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

	September 30, 2020	December 31, 2019
ASSETS:
Plant in service Less accumulated depreciation and impairment	476,770 (269,620)	475,880 (258,822)
Net plant in service	207,150	217,058
Nuclear fuel, at amortized cost Construction work in progress, net	13,018 10,193	14,191 8,302
Total property, plant and equipment	230,361	239,551
Restricted financial assets, net Other non-current financial assets, net Intangible assets, net	15,509 187,801 3,580	14,303 181,201 9,014
Total other non-current assets	206,890	204,518
Total non-current assets	437,251	444,069
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	360 47,666 170 7,566 500 27,411 60,583 3,240 6,582	3,516 58,042 - 6,599 608 24,326 75,602 2,784 6,540
Total current assets	154,078	178,017
Total assets	591,329	622,086

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

Continued

	September 30, 2020	December 31, 2019
EQUITY AND LIABILITIES:
Stated capital Treasury shares Retained earnings and other reserves	53,799 (2,845) 145,654	53,799 (2,885) 152,565
Total equity	196,608	203,479
Long-term debt, net of current portion Provisions Other long-term financial liabilities Deferred tax liability	143,736 75,420 8,048 8,612	133,848 75,315 8,216 8,044
Total non-current liabilities	235,816	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	7,623 8,616 43,055 - 8,445 89,907 1,259	4,119 24,760 53,748 483 9,282 99,954 838
Total current liabilities	158,905	193,184
Total equity and liabilities	591,329	622,086

ČEZ, a. s. STATEMENT OF INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

	1-9/2020	1-9/2019	7-9/2020	7-9/2019
Sales of electricity, heat and gas Sales of services and other revenues Other operating income	60,550 3,778 888	58,771 3,731 777	12,848 844 126	17,913 1,276 191
Total revenues and other operating income	65,216	63,279	13,818	19,380
Gains and losses from commodity derivative trading Purchase of electricity, gas and other	6,245	5,107	21	481
energies Fuel and emission rights Services	(22,327) (12,096) (6,152)	(24,678) (12,644) (6,123)	(4,820) (2,817) (1,556)	(7,489) (4,538) (2,443)
Salaries and wages Materials and supplies Capitalization of expenses to the cost of	(5,382) (1,369)	(4,994) (1,430)	(1,174) (248)	(1,730) (576)
assets and change in own inventories Depreciation and amortization Impairment of property, plant and equipment	23 (11,110)	64 (10,883)	15 (2,421)	24 (3,623)
and intangible assets Impairment of trade and other receivables Other operating expenses	- (8) (937)	(19) (22) (1,061)	- (2) (157)	(3) 1 (275)
Income before other income (expenses) and income taxes	12,103	6,596	659	(791)
Interest on debt, net of capitalized interest Interest on provisions Interest income Impairment of financial assets Other financial expenses Other financial income	(4,083) (1,277) 944 (1,700) (1,078) 11,497	(4,380) (1,207) 972 (1) (508) 13,199	(780) (283) 223 (824) (347) 152	(1,495) (408) 330 (1) (251) (100)
Total other income (expenses)	4,303	8,075	(1,859)	(1,925)
Income before income taxes	16,406	14,671	(1,200)	(2,716)
Income taxes	(1,527)	(351)	106	499
Net income	14,879	14,320	(1,094)	(2,217)

ČEZ, a. s. STATEMENT OF COMPREHENSIVE INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

	1-9/2020	1-9/2019	7-9/2020	7-9/2019
Net income	14,879	14,320	(1,094)	(2,217)
Change in fair value of cash flow hedges Cash flow hedges reclassified to statement	(5,598)	4,009	(6,145)	(909)
of income	674	5,486	(70)	1,221
Change in fair value of debt financial instruments	527	420	56	150
Deferred tax related to other comprehensive income	835	(1,884)	1,170	(88)
Net other comprehensive income that may be reclassified to statement of income or
to assets in subsequent periods	(3,562)	8,031	(4,989)	374
Total comprehensive income, net of tax	11,317	22,351	(6,083)	(1,843)

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

	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	- -	- -	- 7,691	- 340	- -	14,320 -	14,320 8,031
Total comprehensive income	-	-	7,691	340	-	14,320	22,351
Dividends Sale of treasury shares Share options Exercised and forfeited share options	- - - -	- 649 - -	- - - -	- - - -	- - 23 (24)	(12,806) (400) - 24	(12,806) 249 23 -
Balance as at September 30, 2019	53,799	(2,885)	(10,682)	450	116	152,231	193,029
Balance as at January 1, 2020	53,799	(2,885)	(2,867)	277	(156)	155,311	203,479
Net income Other comprehensive income	- -	- -	- (3,989)	- 427	- -	14,879 -	14,879 (3,562)
Total comprehensive income	-	-	(3,989)	427	-	14,879	11,317
Effect of business combination Dividends Sale of treasury shares Exercised and forfeited share options	- - - -	- - 40 -	- - - -	- - - -	3 - - (13)	- (18,206) (25) 13	3 (18,206) 15 -
Balance as at September 30, 2020	53,799	(2,845)	(6,856)	704	(166)	151,972	196,608

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

	1-9/2020	1-9/2019
OPERATING ACTIVITIES:
Income before income taxes	16,406	14,671
Adjustments of income before income taxes to cash generated from operations:
Depreciation and amortization	11,110	10,883
Amortization of nuclear fuel	3,028	2,949
(Gains) and losses on non-current asset retirements	(4)	(19)
Foreign exchange rate loss (gain)	(506)	306
Interest expense, interest income and dividend income	(7,753)	(9,709)
Change in provisions	(827)	(158)
Impairment of property, plant and equipment and intangible
assets	-	19
Other impairment and other non-cash expenses and income	(1,058)	6,715
Changes in assets and liabilities:
Receivables and contract assets	9,702	5,212
Materials, supplies and fossil fuel stocks	(884)	(361)
Receivables and payables from derivatives	6,568	866
Other assets	5,948	(5,947)
Trade payables	(12,231)	(3,642)
Other liabilities	416	237
Cash generated from operations	29,915	22,022
Income taxes paid	(777)	(15)
Interest paid, net of capitalized interest	(3,884)	(4,020)
Interest received	542	575
Dividends received	8,958	12,396
Net cash provided by operating activities	34,754	30,958
INVESTING ACTIVITIES:
Acquisition of subsidiaries and joint-ventures	(2,028)	(2,577)
Proceeds from disposal of subsidiaries and joint-ventures and original investments repayments	207	713
Additions to non-current assets, including capitalized interest	(5,633)	(5,353)
Proceeds from sale of non-current assets	972	1,360
Loans made	(10,122)	(4,075)
Repayments of loans	1,417	2,000
Change in restricted financial assets	(671)	(666)
Total cash used in investing activities	(15,858)	(8,598)

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2020

Continued

	1-9/2020	1-9/2019
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	118,813 (130,892) (1,105) 8,786 (18,064) 15	124,762 (127,204) (924) (5,761) (12,771) 249
Net cash used in financing activities	(22,447)	(21,649)
Net effect of currency translation and allowances in cash	395	37
Net increase (decrease) in cash and cash equivalents	(3,156)	748
Cash and cash equivalents at beginning of period	3,516	454
Cash and cash equivalents at end of period	360	1,202
Supplementary cash flow information:
Total cash paid for interest	4,073	4,172