CEZ A.S.

Quarterly Report • Aug 10, 2021

ČEZ, a. s.

SEPARATE FINANCIAL STATEMENTS

PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS AS OF JUNE 30, 2021

ČEZ, a. s. BALANCE SHEET AS OF JUNE 30, 2021

	June 30, 2021	December 31, 2020
ASSETS:
Plant in service Less accumulated depreciation and impairment	480,386 (264,831)	474,973 (257,008)
Net plant in service	215,555	217,965
Nuclear fuel, at amortized cost Construction work in progress, net	12,504 10,193	13,592 10,052
Total property, plant and equipment	238,252	241,609
Restricted financial assets, net Other non-current financial assets, net Intangible assets, net	15,598 151,326 894	15,221 159,180 3,367
Total other non-current assets	167,818	177,768
Total non-current assets	406,070	419,377
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	18,522 41,154 648 7,525 214 56,587 243,229 3,557 6,540	1,009 58,501 305 7,682 223 34,323 76,976 2,787 31,209
Total current assets	377,976	213,015
Total assets	784,046	632,392

ČEZ, a. s. BALANCE SHEET AS OF JUNE 30, 2021

continued

	June 30, 2021	December 31, 2020
EQUITY AND LIABILITIES:
Stated capital Treasury shares Retained earnings and other reserves	53,799 (1,447) 113,950	53,799 (2,845) 150,491
Total equity	166,302	201,445
Long-term debt, net of current portion Provisions Other long-term financial liabilities Deferred tax liability	95,639 91,334 15,542 5,935	113,929 91,125 8,728 8,235
Total non-current liabilities	208,450	222,017
Short-term loans Current portion of long-term debt Trade payables Provisions Other short-term financial liabilities Other short-term liabilities	4,597 23,705 54,035 6,820 319,362 775	800 27,514 63,093 9,096 107,583 844
Total current liabilities	409,294	208,930
Total equity and liabilities	784,046	632,392

ČEZ, a. s. STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2021

	1-6/2021	1-6/2020	4-6/2021	4-6/2020
Sales of electricity, heat and gas Sales of services and other revenues Other operating income	44,301 2,653 594	41,926 2,510 710	19,550 1,364 239	17,467 1,264 505
Total revenues and other operating income	47,548	45,146	21,153	19,236
Gains and losses from commodity derivative trading Purchase of electricity, gas and other	(2,227)	6,001	(1,124)	167
energies	(15,643)	(15,337)	(6,963)	(6,545)
Fuel and emission rights	(9,373)	(8,380)	(4,060)	(3,325)
Services	(3,931)	(3,895)	(2,357)	(2,159)
Salaries and wages	(3,652)	(3,535)	(1,923)	(1,841)
Materials and supplies	(1,054)	(986)	(602)	(389)
Capitalization of expenses to the cost of
assets and change in own inventories	62	1	31	27
Depreciation and amortization	(6,886)	(7,474)	(3,685)	(3,779)
Impairment of property, plant and equipment
and intangible assets	(25)	-	-	-
Impairment of trade and other receivables	13	(8)	21	(6)
Other operating expenses	(718)	(665)	(393)	(392)
Income before other income (expenses) and
income taxes	4,114	10,868	98	994
Interest on debt, net of capitalized interest	(2,145)	(2,915)	(1,049)	(1,429)
Interest on provisions	(884)	(852)	(442)	(426)
Interest income	711	627	362	300
Impairment of financial assets	(4,502)	(875)	(4,508)	(873)
Other financial expenses	(284)	(616)	(278)	(443)
Other financial income	9,098	11,197	8,372	11,028
Total other income (expenses)	1,994	6,566	2,457	8,157
Income before income taxes	6,108	17,434	2,555	9,151
Income taxes	(605)	(1,594)	69	(18)
Net income	5,503	15,840	2,624	9,133

ČEZ, a. s. STATEMENT OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED JUNE 30, 2021

	1-6/2021	1-6/2020	4-6/2021	4-6/2020
Net income	5,503	15,840	2,624	9,133
Change in fair value of cash flow hedges Cash flow hedges reclassified to statement	(16,195)	(2,798)	(10,488)	(4,896)
of income	789	(596)	1,307	750
Change in fair value of debt financial instruments	(659)	513	45	567
Deferred tax related to other comprehensive income	3,052	547	1,736	680
Net other comprehensive income that may be reclassified to statement of income or
to assets in subsequent periods	(13,013)	(2,334)	(7,400)	(2,899)
Total comprehensive income, net of tax	(7,510)	13,506	(4,776)	6,234

ČEZ, a. s. STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 2021

Balance as at January 1, 2020 53,799 (2,885) (2,867) 277 (156) 155,311	203,479
Net income - - - - - 15,840 Other comprehensive income - - (2,750) 416 - -	15,840 (2,334)
Total comprehensive income - - (2,750) 416 - 15,840	13,506
Effect of business combination - - - - 3 - Dividends - - - - - (18,206) Sale of treasury shares - 40 - - - (25) Exercised and forfeited share options - - - - (8) 8	3 (18,206) 15 -
Balance as at June 30, 2020 53,799 (2,845) (5,617) 693 (161) 152,928	198,797
Balance as at January 1, 2021 53,799 (2,845) (7,146) 441 (1,018) 158,214	201,445
Net income - - - - - 5,503 Other comprehensive income - - (12,479) (534) - -	5,503 (13,013)
Total comprehensive income - - (12,479) (534) - 5,503	(7,510)
Effect of merger - - - - 30 (403) Dividends - - - - - (27,909) Sale of treasury shares - 1,398 - - - (749) Exercised and forfeited share options - - - - (53) 53	(373) (27,909) 649 -
Balance as at June 30, 2021 53,799 (1,447) (19,625) (93) (1,041) 134,709	166,302

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2021

	1-6/2021	1-6/2020
OPERATING ACTIVITIES:
Income before income taxes	6,108	17,434
Adjustments of income before income taxes to cash generated from operations:
Depreciation and amortization	6,886	7,474
Amortization of nuclear fuel	1,966	1,975
(Gains) and losses on non-current asset retirements	(169)	(13)
Foreign exchange rate loss (gain)	(749)	(414)
Interest expense, interest income and dividend income	(6,189)	(8,403)
Change in provisions	(2,309)	(1,776)
Impairment of property, plant and equipment and intangible
assets	25	-
Other impairment and other non-cash expenses and income	(14,036)	(2,334)
Changes in assets and liabilities:
Receivables and contract assets	15,476	14,063
Materials, supplies and fossil fuel stocks	152	(591)
Receivables and payables from derivatives	13,820	2,993
Other assets	(4,577)	2,647
Trade payables	(4,630)	(13,923)
Other liabilities	(87)	288
Cash generated from operations	11,687	19,420
Income taxes paid	(327)	(11)
Interest paid, net of capitalized interest	(2,438)	(3,492)
Interest received	403	343
Dividends received	515	1,707
Net cash provided by operating activities	9,840	17,967
INVESTING ACTIVITIES:
Acquisition of subsidiaries, associates and joint-ventures Proceeds from disposal of subsidiaries, associates and joint	(668)	(2,009)
ventures and original investments repayments	25,791	66
Additions to non-current assets, including capitalized interest	(4,872)	(4,144)
Proceeds from sale of non-current assets	45	972
Loans made	(474)	(529)
Repayments of loans	1,588	929
Change in restricted financial assets	(907)	(619)
Net cash provided by (used in) investing activities	20,503	(5,334)

ČEZ, a. s. STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2021

continued

	1-6/2021	1-6/2020
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	90,276 (104,374) (88) 970 (43) 649	38,487 (55,738) (736) 2,963 (30) 15
Net cash used in financing activities	(12,610)	(15,039)
Net effect of currency translation and allowances in cash	(220)	382
Net increase (decrease) in cash and cash equivalents	17,513	(2,024)
Cash and cash equivalents at beginning of period	1,009	3,516
Cash and cash equivalents at end of period	18,522	1,492
Supplementary cash flow information: Total cash paid for interest	2,594	3,651