Cez As · PSECZ:CEZ
Cez As — FY2020 Earnings Presentation
73 slides from Cez As's earnings presentation, Mar 16, 2021
Slide 1: Press Conference on CEZ Group Financial Results in 2020
PRESS CONFERENCE ON CEZ GROUP FINANCIAL RESULTS IN 2020 AUDITED CONSOLIDATED RESULTS PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) March 16, 2021 CEZ GROUP
Slide 2: A Year with Covid-19: Protecting Operations, Employees and Helping Others
A YEAR WITH COVID-19: PROTECTING OPERATIONS, EMPLOYEES AND HELPING OTHERS Timely measures and close coordination with national crisis staff allowed CEZ Group to deliver electricity without restrictions throughout the duration of the pandemic in Czechia and abroad. We also help others cope with the s
Slide 3: Press Conference on CEZ Group Financial Results in 2020
PRESS CONFERENCE ON CEZ GROUP FINANCIAL RESULTS IN 2020 CEZ Group—Summary of 2020 and Ambitions for 2021 Daniel Beneš, Chief Executive Officer CEZ Group’s Financial Results Martin Novák, Chief Financial Officer Generation, Mining Martin Novák, Chief Financial Officer New Nuclear Power Plant Pavel Cy
Slide 4: Financial Highlights of 2020
FINANCIAL HIGHLIGHTS OF 2020 ▪ Operating revenues increased by 4% year-on-year to CZK 213.7 bn. ▪ EBITDA increased by 8% year-on-year to CZK 64.8 bn. ▪ Net income decreased by 62% year-on-year to CZK 5.5 bn. ▪ Adjusted net income increased by 21% year-on-year to CZK 22.8 bn. ▪ ČEZ’s market capitaliz
Slide 5: Key Events of 2020
KEY EVENTS OF 2020 EXTERNAL ENVIRONMENT ▪ The European Commission proposed increasing the 2030 target for CO2 emission reduction to 55% of the 1990 baseline and published further ambitions and scenarios for attaining objectives under the European Green Deal ▪ The price of emission allowances exceede
Slide 6: Climate Neutrality by 2050 Is the EU's Priority
CLIMATE NEUTRALITY BY 2050 IS THE EU’S PRIORITY; ALL 2030 TARGETS WERE INCREASED SIGNIFICANTLY IN 2020 2030 (European Commission (EC)’s 2030 (original agreement)* ▪ Approval of the European Green current proposal) Deal was the key event of 2020. It At least 55% further emphasizes climate goals and A
Slide 7: Market Prices of Electricity and Emission Allowances in 2020
MARKET PRICES OF ELECTRICITY AND EMISSION ALLOWANCES IN 2020 WERE DETERMINED BY DEVELOPMENTS IN EU REGULATION AND IMPACTS OF COVID-19 The European Speculative pressure on Council EUA price in relation to Prices of Electricity and Emission Allowances in Germany (Jan 1, 2020–Mar 4, 2021) approved a ex
Slide 8: CEZ Group's Emission Intensity Lower Than New CCGT Plants
IN 2020 CEZ GROUP’S EMISSION INTENSITY REACHED A VALUE LOWER THAN THE SPECIFIC CO2 EMISSIONS OF NEW CCGT PLANTS CEZ Group’s emission intensity (tCO2/MWh of generated electricity) Current emissions of a marginal power plant in Germany Emissions of new CCGT plants CEZ Group CEZ Group’s emission intens
Slide 9: Sustainable Development and Social Responsibility Are Employees' Priority
WE PROVED IN 2020 THAT SUSTAINABLE DEVELOPMENT AND SOCIAL RESPONSIBILITY ARE OUR EMPLOYEES’ PRIORITY “E” Environment “S” Social “G” Governance ▪ Gradual reduction of CO2 emissions—shutting ▪ Employer of the Year 2020—1st place for ČEZ in ▪ ČEZ promotes ethical principles in down the 440 MW Prunéřov
Slide 10: Divestments of Selected Foreign Assets Fulfill Approved Strategy
DIVESTMENTS OF SELECTED FOREIGN ASSETS FULFILL CEZ GROUP’S APPROVED STRATEGY AND HELP REINFORCE ITS FINANCIAL STABILITY ▪ The current strategy from 2019 aimed at divesting some assets in selected countries to improve CEZ Group’s risk profile and focus on the decarbonization of its generation portfol
Slide 11: Sale of Romanian Assets Will Be Settled on Mar 31, 2021
THE MOST SIGNIFICANT DIVESTMENT TRANSACTION—SALE OF ROMANIAN ASSETS—WILL BE SETTLED ON MAR 31, 2021 All necessary approvals have been obtained; settlement incl. purchase price payment on Mar 31, 2021 ▪ The selling process started on Sep 9, 2019. ▪ CEZ Group received binding bids on Jun 25, 2020. The
Slide 12: Developments in CEZ Group's Divesting Activities: Other Countries
DEVELOPMENTS IN CEZ GROUP’S DIVESTING ACTIVITIES OTHER COUNTRIES BULGARIA—The energy regulatory authority approved the sale of assets to Eurohold ▪ On Jul 22, 2020, the Administrative Court in Sofia reversed the decision of the Bulgarian Commission for Protection of Competition, which stopped the sa
Slide 13: Strategic Priorities for 2021
STRATEGIC PRIORITIES FOR 2021 GENERATION & MINING ▪ Increasing generation at nuclear power plants to over 30.5 TWh ▪ Starting the construction of new RES facilities in Czechia ▪ Fulfilling the decarbonization strategy, incl. shutdown of Unit 3 of the Mělník power plant ▪ Preparing the transition of
Slide 14: Press Conference on CEZ Group Financial Results in 2020
PRESS CONFERENCE ON CEZ GROUP FINANCIAL RESULTS IN 2020 CEZ Group—Summary of 2020 and Ambitions for 2021 Daniel Beneš, Chief Executive Officer CEZ Group’s Financial Results Martin Novák, Chief Financial Officer Generation, Mining Martin Novák, Chief Financial Officer New Nuclear Power Plant Pavel Cy
Slide 15: Financial Performance in 2020: EBITDA, Net Income, Adjusted Net Income
FINANCIAL PERFORMANCE IN 2020: EBITDA OF CZK 64.8 BN, NET INCOME OF CZK 5.5 BN, ADJUSTED NET INCOME OF CZK 22.8 BN EBITDA Selected year-on-year effects (at EBITDA level): CZK bn + Higher realization prices of electricity incl. hedging effects in 60.2 +8 % 64.8 Czechia − Higher expenses on emission a
Slide 16: Year-on-Year Change in EBITDA by Segment
YEAR-ON-YEAR CHANGE IN EBITDA BY SEGMENT (INCL. STRATEGIC VS. OTHER ASSETS) CZK bn Assets held for sale Strategic assets Main causes of year-on-year change in EBITDA Strategic assets (CEZ Group excluding companies intended for sale under the valid strategy from 2019) ▪ Higher realization prices of g
Slide 17: Covid-19 Effect on Initial Ambitions Offset at EBITDA Level
THE NEGATIVE EFFECT OF COVID-19 ON FULFILLING CEZ GROUP’S INITIAL AMBITIONS FOR 2020 WAS OFFSET AT EBITDA LEVEL CEZ Group’s Estimated EBITDA The total negative effect of COVID-19 on the initial ambition for CZK bn CEZ Group’s 2020 EBITDA exceeded CZK 3 bn; thereof: 80 63–65 61–64 64.8 ▪ Sales segmen
Slide 18: Other Income (Expenses)
OTHER INCOME (EXPENSES) (CZK bn) 2019 2020 Change % EBITDA 60.2 64.8 +4.6 +8% Depreciation, amortization and impairments* -33.7 -52.2 -18.5 -55% Other income (expenses) -8.0 -4.7 +3.3 +42% Interest income (expenses) -5.1 -4.9 +0.2 +3% Interest on nuclear and other provisions -1.9 -2.0 -0.1 -3% Incom
Slide 19: Financial and Operating Results CEZ Group
FINANCIAL AND OPERATING RESULTS CEZ GROUP (CZK bn) 2019 2020 Change % Revenues 206.2 213.7 +7.5 +4% EBITDA 60.2 64.8 +4.6 +8% EBIT 26.4 12.6 -13.8 -52% Net income 14.5 5.5 -9.0 -62% Net income adjusted * 18.9 22.8 +4.0 +21% Operating CF 42.9 72.2 +29.2 +68% CAPEX 29.8 31.2 +1.4 +5% 2019 2020 Change
Slide 20: Financial Outlook for 2021
FINANCIAL OUTLOOK FOR 2021: WE ESTIMATE STRATEGIC ASSETS EBITDA AT 54-57, NET INCOME AT CZK 17-20 BN CZK bn Main year-on-year effects (2021 vs. 2020): EBITDA − Higher expenses on emission allowances for generation 64.8 60 - 63 − Lower revenue from ancillary services 7.6 6* − Effect of a new regulato
Slide 21: Expected Change in EBITDA for Strategic Assets 2021 vs. 2020
EXPECTED YEAR-ON-YEAR CHANGE IN EBITDA FOR STRATEGIC ASSETS 2021 VS. 2020 BY BUSINESS SEGMENT STRATEGIC ASSETS EBITDA 2020 (total year-on-year decrease by CZK 0 to 3 bn) SALES Segment + Growth ambitions in ESCO services + Negative effect of Covid-19 on ESCO companies in 2020 − Settlement of unbilled
Slide 22: Change in Structure of Key Operating Segments from Jan 1, 2021
WE CHANGE THE STRUCTURE OF KEY OPERATING SEGMENTS FROM JAN 1, 2021. NEWLY 4 SEGMENTS: SALES, DISTRIBUTION, GENERATION, MINING Segments until Dec 31, 2020 Segments since Jan 1, 2021 Mining MINING Generation—Traditional Energy GENERATION—Nuclear Plants GENERATION—Renewables Generation—New Energy GENER
Slide 23: Share of Fossil Fuel Generation and Mining in EBITDA to Fall Below 10%
WE ESTIMATE THAT THE SHARE OF FOSSIL FUEL GENERATION AND MINING IN STRATEGIC ASSETS EBITDA WILL DECREASE BELOW 10% OVERALL IN 2021 2020 EBITDA—Strategic Assets 2021 EBITDA—Strategic Assets (excluding assets held for sale) (excluding assets held for sale) 22 CEZ GROUP
Slide 24: Press Conference on CEZ Group Financial Results in 2020
PRESS CONFERENCE ON CEZ GROUP FINANCIAL RESULTS IN 2020 CEZ Group—Summary of 2020 and Ambitions for 2021 Daniel Beneš, Chief Executive Officer CEZ Group’s Financial Results Martin Novák, Chief Financial Officer Generation, Mining Martin Novák, Chief Financial Officer New Nuclear Power Plant Pavel Cy
Slide 25: EBITDA in Segments: Generation, Mining, New Energy, Support Services
EBITDA IN SEGMENTS: GENERATION—TRADITIONAL ENERGY, MINING, GENERATION—NEW ENERGY, SUPPORT SERVICES Main operating results in selected countries EBITDA segments (CZK bn) 2019 2020 Change % Generation—traditional energy Czech Republic 24.8 28.5 +3.7 +15% Mining Czech Republic 5.0 3.4 -1.6 -31% Generat
Slide 26: Electricity Generation in 2020: Strategic Assets
ELECTRICITY GENERATION IN 2020 STRATEGIC ASSETS Electricity generation – Strategic assets* Renewables (+4%) Czechia hydro (+5%) + Higher generation in pump-storage power plants Germany (+3%) + Worse-than-average weather conditions in 2019 Nuclear generation (-1%) − Operating inspections, investment
Slide 27: Generation—Nuclear Plants: Selected Events in 2020
Nuclear Generation (TWh) 29.9 30.2 30.0 GENERATION—NUCLEAR PLANTS SELECTED EVENTS IN 2020 15.7 15.8 15.7 ETE EDU 14.3 14.5 14.3 Stable and safe generation at nuclear plants ▪ 30.04 TWh of electricity generated in 2020. 2018 2019 2020 ▪ ČEZ’s nuclear power plants stood the difficult test of operation
Slide 28: Generation—Renewables: Selected Events in 2020
GENERATION—RENEWABLES SELECTED EVENTS IN 2020 Czechia ▪ Electricity generation at ČEZ, a.s., hydroelectric power plants increased by 0.1 TWh year-on-year, to 2.2 TWh, due to better climatic conditions. ▪ Preparatory work continued for the upgrade of the Orlík power plant into a pumped-storage power
Slide 29: Generation—Fossil Fuel Facilities and Mining: Selected Events in 2020
GENERATION—FOSSIL FUEL FACILITIES AND MINING SELECTED EVENTS IN 2020—CZECHIA Electricity and Heat Generation ▪ Electricity generation at coal-fired power plants decreased by 3.7 TWh to 20.3 TWh. It was affected most significantly by the shutdown of the Prunéřov 1 power plant (on Jun 30, 2020; year-o
Slide 30: Estimated Electricity Generation in 2021: Strategic Assets
ESTIMATED ELECTRICITY GENERATION IN 2021 STRATEGIC ASSETS Electricity Generation—Strategic Assets* Renewables (+1%) Czechia hydro (+3%) + Shorter outages at pumped-storage power plants Czechia biomass (-9%) Germany (+8%) + Worse-than-average weather conditions in 2020 Nuclear plants (+2%) + Shorter
Slide 31: CEZ Continues Hedging Its Generation Revenues
ČEZ CONTINUES HEDGING ITS GENERATION REVENUES; 89% CONTRACTED FOR 2021, ELECTRICITY AT 46 EUR/MWH, EUA AT 20.6 EUR/T Expected realization prices for generation in Czechia in Share of Hedged Production of ČEZ* Facilities in Czechia as at Dec 31, 2020 2021 (forecasts as at Dec 31, 2020): 100% ~ 89% He
Slide 32: Press Conference on CEZ Group Financial Results in 2020
PRESS CONFERENCE ON CEZ GROUP FINANCIAL RESULTS IN 2020 CEZ Group—Summary of 2020 and Ambitions for 2021 Daniel Beneš, Chief Executive Officer CEZ Group’s Financial Results Martin Novák, Chief Financial Officer Generation, Mining Martin Novák, Chief Financial Officer New Nuclear Power Plant Pavel Cy
Slide 33: Agreements for Construction of New Nuclear Power Plant at Dukovany
ON JUL 28, 2020, THE CZECH GOVERNMENT SIGNED TWO AGREEMENTS WITH ČEZ AND ELEKTRÁRNA DUKOVANY II, DEFINING FRAMEWORK CONDITIONS FOR THE CONSTRUCTION OF A NEW NUCLEAR POWER PLANT IN CZECHIA, AT DUKOVANY LOCATION 1) FRAMEWORK AGREEMENT, not legally binding, covers overall cooperation in NNPP constructi
Slide 34: New Nuclear Power Plant: Steps in 2020 and Expected Steps in 2021
NEW NUCLEAR POWER PLANT AT DUKOVANY PREPARATORY STEPS IN 2020 AND EXPECTED STEPS IN 2021 STEPS TAKEN IN 2020 ACCORDING TO CONTRACTS EXPECTED STEPS IN 2021 On CEZ Group side: Applying for and receiving generating facility authorization Company Elektrarna Dukovany II is fully equipped with under t
Slide 35: Press Conference on CEZ Group Financial Results in 2020
PRESS CONFERENCE ON CEZ GROUP FINANCIAL RESULTS IN 2020 CEZ Group—Summary of 2020 and Ambitions for 2021 Daniel Beneš, Chief Executive Officer CEZ Group’s Financial Results Martin Novák, Chief Financial Officer Generation, Mining Martin Novák, Chief Financial Officer New Nuclear Power Plant Pavel Cy
Slide 36: Gain from Commodity Trading in 2020
GAIN FROM COMMODITY TRADING IN 2020 CONFIRMED THE HIGH STANDARD FROM 2018 AND 2019 ▪ Our trading activities in 2020 included more than 325,000 closed transactions, trading: ▪ 725 TWh of electricity ▪ 1,731 TWh of natural gas ▪ Our trading margin* in 2020 was CZK +3.8 bn, which was the second best re
Slide 37: EBITDA of Segments: Distribution, Sales
EBITDA OF SEGMENTS: DISTRIBUTION, SALES EBITDA in selected countries EBITDA segments (CZK bn) 2019 2020 Change % Distribution Czech Republic 17.5 17.7 +0.1 +1% Sales Czech Republic 2.4 3.5 +1.2 +48% Sales Germany 0.7 0.3 -0.4 -57% Sales Poland 0.2 0.2 +0.0 +19% Main reasons for y-o-y changes in EBIT
Slide 38: ČEZ Distribuce: Distributed Electricity and Selected Events in 2020
ČEZ DISTRIBUCE AMOUNT OF DISTRIBUTED ELECTRICITY AND SELECTED EVENTS IN 2020 Distributed electricity Selected Events ▪ On Jan 1, 2021, the company changed the manner of TWh notification of planned outages, switching from paper to digital form (email/SMS); this step was preceded by a public informati
Slide 39: ČEZ Distribuce: Parameters of the New Regulatory Period 2021-2025
ČEZ DISTRIBUCE PARAMETERS OF THE NEW REGULATORY PERIOD 2021-2025 Summary of parameters for the 5th regulatory period, i.e. for the period of 2021–2025 ▪ There will be a 100% adjustment of the regulatory asset base (RAB) to the total book value of assets by the end of 2025 in a progressive manner (in
Slide 40: Sales Segment—Retail: Electricity and Gas Sold in Czechia
SALES SEGMENT—RETAIL AMOUNTS OF ELECTRICITY AND GAS SOLD IN CZECHIA ČEZ PRODEJ‘s ELECTRICITY AND ČEZ PRODEJ‘S NUMBER OF CUSTOMERS IS STABLE NATURAL GAS SUPPLIES GREW YEAR-ON-YEAR (CONNECTION POINTS IN THOUSAND) BY 4% IN TOTAL (TWh) ▪ Volume of electricity supplies of electricity and gas grew primari
Slide 41: ČEZ Prodej Helped Alleviate Covid-19 Impacts on Customers
SALES SEGMENT—RETAIL ČEZ PRODEJ HELPED ALLEVIATE COVID-19 IMPACTS ON ITS CUSTOMERS ▪ Key “alleviation measures” relating to a state of emergency declared due to the Covid-19 pandemic in March 2020 were: • Possibility to suspend advance payments for up to 3 months • Suspension of disconnection due to
Slide 42: ESCO Services Affected by Covid-19; Revenue Growth Ambition for 2021
ESCO SERVICES IN 2020 NEGATIVELY AFFECTED BY COVID-19 EFFECTS REVENUE GROWTH AMBITION FOR 2021 SET TO 14% CZK bn CZK bn Effect of COVID-19 on initial sales estimates Germany (-1%) Revenue growth ambition (+14 %) + Effect of acquisition of Hermos (consolidated May 15, 2019) + Organic growth assuming
Slide 43: Sales Segment—ESCO Services: Selected Events in 2020
SALES SEGMENT—ESCO SERVICES SELECTED EVENTS IN 2020 ESCO CZECHIA AND SLOVAKIA ▪ ČEZ ESCO, a.s., became the owner of a 100% stake in ČEZ Energo, s.r.o. The remaining share of 49.9% was purchased from TEDOM at Jun 30, 2020. ČEZ Energo was established in 2011 through a partnership of ČEZ and TEDOM. It
Slide 44: Inven Capital: Selected Events in 2020
INVEN CAPITAL SELECTED EVENTS IN 2020 Successful appreciation of share in CyberX: ▪ CyberX—an Israeli company providing comprehensive solutions for industrial cybersecurity ▪ Share sold to Microsoft for about 1.6 times the purchase price in June 2020 Investments in new companies: ▪ Forto—a German co
Slide 45: CEZ Group Continues Developing Electric Mobility in Czechia
CEZ GROUP CONTINUES DEVELOPING ELECTRIC MOBILITY IN CZECHIA AND CONSIDERS FURTHER DEVELOPMENT IN THE FIELD ČEZ is the largest e-mobility network operator in Czechia ▪ 83 public charging stations were built in 2020, 63% more year-on-year ▪ The amount of electricity consumed at charging station increa
Slide 46: Development of Renewables in Czechia and Modernization Fund
DEVELOPMENT OF RENEWABLES IN CZECHIA AND MODERNIZATION FUND SELECTED EVENTS IN 2020 CEZ Group has an ambition to become a more significant player in renewables in Czechia and put RES facilities with capacity exceeding 1 GW into operation by 2025. General parameters for Modernization Fund support for
Slide 47: Annexes
ANNEXES ▪ EBITDA by Segment—All-Year Comparison incl. Segment Generation Volumes ▪ EBITDA—Q4 Year-on-Year Comparison ▪ Net Income—Q4 Year-on-Year Comparison ▪ Cash Flows ▪ Debt Position and Structure ▪ Capital Expenditures ▪ Balance Sheet Overview ▪ Change in Segment Structure from Jan 1, 2021, and
Slide 48: Segment: Generation—Traditional Energy
SEGMENT: GENERATION—TRADITIONAL ENERGY EBITDA (CZK bn) 2019 2020 Change % Czechia 24.8 28.5 +3.7 +15% Poland 0.8 0.7 -0.1 -10% Other states 0.0 0.0 -0.0 -42% Generation - traditional energy 25.6 29.3 +3.6 +14% Czechia (CZK +3.7 bn) ▪ Higher realization prices of generated electricity, including the
Slide 49: Electricity Generation in 2020: Generation—Traditional Energy
ELECTRICITY GENERATION IN 2020 SEGMENT GENERATION—TRADITIONAL ENERGY Nuclear Power Plants (-1%) − Operating inspections, investment projects, and grid effects Coal-Fired Power Plants (-14%) Czechia (-15%) − Termination of the Prunéřov 1 power plant’s operation at Jun 30, 2020 − Lower generation at t
Slide 50: Segment: Generation—New Energy
SEGMENT: GENERATION—NEW ENERGY EBITDA (CZK bn) 2019 2020 Change % Czechia 1.9 1.9 -0.0 -2% Romania 1.6 2.3 +0.7 +41% Germany 0.5 0.5 +0.1 +12% Other states 0.0 -0.1 -0.2 - Generation - new energy 4.1 4.6 +0.5 +13% Romania (CZK +0.7 bn) ▪ Higher gross margin on electricity generation (CZK +0.6 bn) du
Slide 51: Electricity Generation in 2020: Generation—New Energy and Sales
ELECTRICITY GENERATION IN 2020 SEGMENTS GENERATION—NEW ENERGY AND SALES Germany (+3%) + Worse-than-average weather conditions in 2019 Czechia (+7%) + Higher generation at ČEZ Energo + Higher generation at small hydropower plants due to better- than-average hydrometeorologic conditions Romania (+7%)
Slide 52: Segment: Sales
SEGMENT: SALES EBITDA (CZK bn) 2019 2020 Change % Czechia 2.4 3.5 +1.2 +48% Germany 0.7 0.3 -0.4 -57% Romania 0.1 0.3 +0.2 +116% Bulgaria 0.4 0.4 +0.0 +10% Other states -0.0 0.1 +0.1 - Sales 3.6 4.6 +1.1 +30% Czechia (CZK +1.2 bn) ▪ Effect of a 2019 court ruling under which the payment of SŽDC’s deb
Slide 53: Segment: Distribution
SEGMENT: DISTRIBUTION EBITDA (CZK bn) 2019 2020 Change % Czechia 17.5 17.7 +0.1 +1% Romania 1.5 2.0 +0.4 +27% Bulgaria 1.5 1.9 +0.4 +27% Distribution 20.6 21.5 +0.9 +5% Czechia (CZK +0.1 bn) ▪ Lower gross margin on electricity distribution (CZK -0.2 bn) due to Covid-19 effects ▪ Higher capitalizatio
Slide 54: Mining and Support Services Segments
MINING AND SUPPORT SERVICES SEGMENTS EBITDA (CZK bn) 2019 2020 Change % Czechia 5.0 3.4 -1.6 -31% Mining 5.0 3.4 -1.6 -31% Czechia (CZK -1.6 bn) ▪ Decrease in revenue from coal sales to CEZ Group (CZK -1.1 bn), primarily due to an extended outage of Ledvice 4 (new facility) and the shutdown of Pruné
Slide 55: EBITDA—Q4 Year-on-Year Comparison
EBITDA—Q4 YEAR-ON-YEAR COMPARISON CEZ Group EBITDA (CZK -1.6 bn) ▪ Mining (CZK -0.2 bn): lower revenue from coal sales, primarily due to lower demand from CEZ Group ▪ Generation—Traditional Energy (CZK -1.0 bn): higher expenses on emission allowances for generation due to increased purchase prices a
Slide 56: Net Income—Year-on-Year Q4 Comparison
NET INCOME—YEAR-ON-YEAR Q4 COMPARISON (CZK bn) Q4 2019 Q4 2020 Change % EBITDA 15.5 13.9 -1.6 -10% Depreciation, amortization and impairments* -11.2 -24.5 -13.3 -119% Other income (expenses) -2.7 1.0 +3.7 - Income taxes -0.8 1.4 +2.2 - Net income 0.9 -8.1 -9.0 - Net income adjusted 4.1 4.1 -0.0 -1%
Slide 57: Cash Flows
CASH FLOWS Cash Flows from Operating Activities (CZK +72.2 bn) ▪ Income after adjustments incl. income taxes (CZK +51.0 bn): income before tax (CZK +7.9 bn); income tax paid (CZK -3.7 bn); interest paid, other than capitalized interest, and interest received (CZK -5.3 bn); adjustments of income befo
Slide 58: Debt Position and Structure
DEBT POSITION AND STRUCTURE CEZ GROUP MAINTAINS A STRONG LIQUIDITY POSITION Debt Level* Bond Maturity Profile (as at Dec 31, 2020) As at As at CZK bn Dec 31, 2019 Dec 31, 2020 25 Debt and loans CZK bn 173.7 156.5 Cash and fin. assets** CZK bn 12.4 13.0 20 Net debt CZK bn 161.2 143.5 15 Net debt/EBIT
Slide 59: Capital Expenditure Broken Down by Segment
CAPITAL EXPENDITURE BROKEN DOWN BY SEGMENT CZK bn 2019 2020 Generation—Traditional Energy 10.8 10.7 Thereof: Nuclear fuel procurement 3.2 3.0 Generation—New Energy 0.7 0.4 Mining 2.3 3.3 Distribution 13.7 14.9 Czechia 10.9 12.4 Romania 1.3 1.4 Bulgaria 1.5 1.1 Sales 1.5 1.2 Support Services* 0.8 0.7
Slide 60: Balance Sheet Overview
BALANCE SHEET OVERVIEW Current assets increased by CZK 27.9 bn ▪ Assets classified as held for sale CZK +23.1 bn Current liabilities increased by CZK 20.9 bn ▪ Emission allowances CZK +10.8 bn ▪ Current liabilities from derivatives CZK +8.7 bn ▪ Short-term deposits CZK +2.8 bn ▪ Trade payables CZK +
Slide 61: Key Operating Segments Newly Structured Since Jan 1, 2021
KEY OPERATING SEGMENTS NEWLY STRUCTURED SINCE JAN 1, 2021 NEWLY 4 SEGMENTS: SALES, DISTRIBUTION, GENERATION, MINING Segments Segments until Dec 31, 2020 since Jan 1, 2021 ▪ The change consists in merging the Generation—Traditional Energy and Generation—New Energy segments into a Mining MINING new GE
Slide 62: Comparison of 2020 EBITDA by Segment Structures
COMPARISON OF 2020 EBITDA STRUCTURED BY KEY OPERATING SEGMENTS AS IN EFFECT UNTIL DEC 31, 2020, AND SINCE JAN 1, 2021, AND INFORMATION ON THE INCLUSION OF COMPANIES IN SEGMENTS SINCE JAN 1, 2021 EBITDA 2020 (CZK bn) All companies in the previous of which Generation—Traditional Energy, Segments until
Slide 63: Four Subareas under the New Generation Segment
FOUR SUBAREAS FOLLOWED UNDER THE NEW GENERATION SEGMENT: NUCLEAR, RENEWABLES, FOSSIL FUEL, TRADING PREVIOUS SEGMENT STRUCTURE NEW SEGMENT STRUCTURE in effect until Dec 31, 2020 in effect since Jan 1, 2021 Mining SHARES IN 2020 EBITDA SHARES IN 2020 EBITDA Generation – Traditional Energy Generation –
Slide 64: Assets Held for Sale: Electricity Generation and Distribution Regulation
ASSETS HELD FOR SALE—ELECTRICITY GENERATION AND CHANGES IN DISTRIBUTION REGULATION IN 2020 Electricity generation Renewables (+14%) ▪ Romanian wind ▪ Romanian & Polish hydro ▪ Bulgarian photovoltaic ▪ Polish biomass Coal-fired generation (-3%) Poland—coal-fired generation (-3%) − Less coal burnt due
Slide 65: Currency Hedges for Expected Electricity Generation in 2021–2024
CURRENCY HEDGES FOR EXPECTED ELECTRICITY GENERATION IN 2021–2024 Currency Hedges for Estimated Supplies of Generated Electricity as at Dec 31, 2020 2021 2022 2023 2024 Total currency hedges 98% 97% 87% 67% (natural & transactional) as at Dec 31, 2020 83% 81% 81% 25% Natural currency hedging (debt in
Slide 66: Electricity Consumption in the Distribution Area of ČEZ Distribuce
ELECTRICITY CONSUMPTION IN THE DISTRIBUTION AREA OF ČEZ DISTRIBUCE Consumption in the Distribution Temperature- and Calendar-Adjusted Area of ČEZ Distribuce Consumption* TWh TWh 36.73 35.86 35.45 34.68 Changes in consumption (-3.3%) by segment: ▪ -7.5% large end-use -3.5% -3.3% customers ▪ +5.4% res
Slide 67: Počerady Coal-Fired Power Plant—Sale Transaction Summary
POČERADY COAL-FIRED POWER PLANT—SALE TRANSACTION SUMMARY Transaction summary ▪ Original contracts made between ČEZ and Vršanská uhelná from the Sev.en Energy group anticipated selling a 100% stake in Elektrárna Počerady for a purchase price of CZK 2.0 bn with a transaction date of Jan 2, 2024. Under
Slide 68: Potential Financial Resources for Green Investments under EU Green Deal
SUMMARY OF POTENTIAL FINANCIAL RESOURCES FOR SPECIFIC GREEN INVESTMENTS IN LINE WITH THE EU’S “GREEN DEAL” Fixed funds allocated at EU level * EU ETS funds, income from Sustainable Finance emission allowances ▪ EU budget for 2021–2027 totaling EUR ▪ Modernization fund of tens of bn ▪ Financial marke
Slide 69: Market Developments
MARKET DEVELOPMENTS 68 CEZ GROUP
Slide 70: Electricity Balance (GWh)
Electricity balance (GWh) Index 2019 2020 2020/2019 Electricity procured 58,381 54,902 -6% Generated in-house (gross) 64,635 60,946 -6% In-house and other consumption, including pumping in pumped-storage plants -6,254 -6,044 -3% Sold to end customers -35,176 -33,265 -5% Sold in the wholesale market
Slide 71: Electricity Balance (GWh) by Segment
Electricity balance (GWh) by segment Generation - traditional Generation - new 2020 energy energy Distribution Sale Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 52,596 -6% 1,983 +6% 0 - 323 +8% 0 - 54,902 -6% Generated in-house (gross) 58,606 -6% 2,002
Slide 72: Electricity Balance (GWh) by Country
Electricity balance (GWh) by country 2020 Czechia Poland Romania Bulgaria Germany Others Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 51,077 -7% 2,211 +4% 1,316 +7% 6 -4% 292 +3% 0 - 0 - 54,902 -6% Generated in-house (gross) 56,777 -6% 2
Slide 73: Definitions and Calculations of Indicators Unspecified in IFRS
Definitions and Calculations of Indicators Unspecified in IFRS In accordance with ESMA guidelines, ČEZ provides detailed information on indicators that are not reported as standard in IFRS reports or the components of which are not directly available from standardized reports and notes to the financ