Cez As · PSECZ:CEZ
Cez As — ESG Presentation (May 2021)
23 slides from Cez As's sustainability presentation, May 20, 2021
Slide 1: Clean Energy of Tomorrow
vize 2030 CLEAN ENERGY OF TOMORROW press conference May 20, 2021 CLEAN ENERGY OF TOMORROW
Slide 2: CEZ Group's strategy update has contributed to an increase in performance
CEZ GROUP’S STRATEGY UPDATE HAS CONTRIBUTED TO AN INCREASE IN PERFORMANCE CEZ GROUP financial results (CZK bn) ~30% 65 60 50 ~75% 23 19 EBITDA 13 Adjusted net income 2018 2019 2020 2
Slide 3: CEZ Group's strategy has been successfully implemented in all segments
CEZ GROUP’S STRATEGY HAS BEEN SUCCESSFULLY IMPLEMENTED IN ALL SEGMENTS Nuclear facilities generate safely and consistently above 30 TWh aking production from emission sources more efficient M M odernization and digitization of the distribution grid I ncrease in customer satisfaction and number of cu
Slide 4: CEZ Group is already gradually reducing the generation of electricity from coal
CEZ GROUP IS ALREADY GRADUALLY REDUCING THE GENERATION OF ELECTRICITY FROM COAL CEZ Group’s CO2 emission intensity Installed capacity of CEZ Group’s (t/MWh) coal-fired power plants (GW) -25% -40% 0.44 7.8 0.38 6.9 0.33 4.8 2016 2018 2020 2016 2018 2020 4
Slide 5: Climate neutrality by 2050 is a priority for the EU
CLIMATE NEUTRALITY BY 2050 IS A PRIORITY FOR THE EU, WITH ALL TARGETS SIGNIFICANTLY INCREASED LAST YEAR 2030 targets (original agreement) 2030 targets (EC’s current proposal) Reduction of Min. 40% Min. 55% greenhouse gas Binding EU-wide target European Parliament requests 60% emissions from 1990 The
Slide 6: Social and political influence on the economy and energy sector is accelerating
SOCIAL AND POLITICAL INFLUENCE ON THE ECONOMY AND ENERGY SECTOR IS ACCELERATING ost of the major banks and insurers in the EU and Czechia make their services M conditional on ending the use of coal and achieving carbon neutrality, and increasingly make the provision of their services dependent on “s
Slide 7: Investor decision-making is already based on a complete ESG rating
INVESTOR DECISION-MAKING IS ALREADY BASED ON A COMPLETE ESG RATING ESG Environmental Social Governance Human Waste / Toxic Renewables / Other Other Carbon Emissions Capital Community Other Social Ethics Emissions Innovation Environment Governance Development Focus on coal Bank shareholders are incre
Slide 8: We aim to become one of the ESG leaders
WE AIM TO BECOME ONE OF THE ESG LEADERS Current ESG score* 100% 90% CEZ Group aims 80% to achieve an ESG score* of at least 70% 80% by 2023 60% We have set core targets 50% based on the ESG methodology for each 40% ESG area 30% 20% 10% * Average score according to ESG 0% agencies MSCI and Sustainana
Slide 9: We have set core environmental targets
WE HAVE SET CORE ENVIRONMENTAL TARGETS Decarbonisation Carbon emissions targets: We will reduce CO2 emissions in line with the Paris Agreement “well below 2 degrees” by 2030 We will reduce the emission intensity from 0.36 tCO2/MWh in 2019 to 0.26 tCO2/MWh in 2025 and to 0.16 tCO2/MWh in 2030 We will
Slide 10: We have set core social targets
WE HAVE SET CORE SOCIAL TARGETS Community Community relations targets: We will continue to be a good corporate citizen, cultivating good relationships with communities Customer Orientation Customer satisfaction targets: We will maintain the highest NPS (Net Promoter Score) among the major electricit
Slide 11: We have set core governance targets
WE HAVE SET CORE GOVERNANCE TARGETS Diversity and Equal Opportunities Targets for the representation of women in management: We will reach 30% female representation in management, and increasing the proportion of women in management of non-technical segments to 30% by 2025 Business Ethics Business E
Slide 12: We accelerate the implementation of the current strategy
WE ACCELERATE THE IMPLEMENTATION OF THE CURRENT STRATEGY CEZ Group’s Strategic CEZ Group’s Key Strategy Thesis VIZE 2030 Priorities Clean ENERGY OF TOMORROW fficiently managing nuclear power plants E Efficient operation, optimal Transforming the Generating Portfolio to Low utilization and developmen
Slide 13: We will transform our generating portfolio to low-emission and achieve carbon neutrality
wE WILL TRANSFORM OUR GENERATING PORTFOLIO TO LOW-EMISSION AND ACHIEVE CARBON NEUTRALITY I Nuclear Power Plants We will safely increase generation from existing nuclear power plants to an average of over 32 TWh and achieve a 60-year lifetime We will build a new nuclear unit in Dukovany We will prepa
Slide 14: We provide the best energy solutions and the best customer experience on the market
WE PROVIDE THE BEST ENERGY SOLUTIONS AND THE BEST CUSTOMER EXPERIENCE ON THE MARKET II Distribution We are investing in Smart grids and decentralization to further develop a reliable and digital distribution grid, including the development of fiber optic networks Sales We will digitize 100% of our k
Slide 15: Battery production and electromobility will be additional sources of growth
ADDITIONAL AREAS OF BATTERY PRODUCTION AND ELECTROMOBILITY WILL BE ADDITIONAL SOURCES OF GROWTH Battery as a Service Electromobility Cars as Energy Storage (BAAS) Ecosystem Systems (ESS) Using car batteries in the Czech distribution grid Component supplier ecosystem Battery Mining and Production Cel
Slide 16: Vize 2030 will help us meet our primary financial target
VIZE 2030―Clean ENERGY OF TOMORROW WILL HELP US MEET OUR PRIMARY FINANCIAL TARGET VIZE 2030—Clean ENERGY OF TOMORROW 80―85 I +40% 65―70 Transforming the Generating Portfolio to Low Emissions and 57 Achieving Carbon Neutrality II Providing the Best Energy Solutions and the Best Customer Experience on
Slide 17: Vize 2030 ― Clean Energy of Tomorrow
VIZE 2030―Clean ENERGY OF TOMORROW e will develop CEZ Group responsibly and sustainably in accordance with the ESG W W e are accelerating development as part of the strategy: W e will transform our generating portfolio to low-carbon in line with the Paris Agreement by 2030 and achieve carbon neutral
Slide 18: Annex
ANNEX 18
Slide 19: CEZ Group's profile
CEZ GROUP’S PROFILE 2020 Operating revenues CZK 214 bn EBITDA CZK 65 bn Net income CZK 5.5 bn Adjusted net income CZK 22.8 bn Number of employees 32.5 thousand Installed capacity 12,933 MW Length of Czechia’s distribution grid 311,652 km Electricity generation 60.9 TWh Electricity sales 33.3 TWh Vol
Slide 20: CEZ Group is an international company with a strong position on the Czech market
energetická aktiva CEZ GROUP IS AN INTERNATIONAL COMPANY WITH A STRONG POSITION ON THE CZECH MARKET AND GROWING POSITION IN WESTERN EUROPE MAIN target markets Other markets Czechia Poland (divestment ongoing) Mining Traditional generation Traditional generation (CE, NPP) Romania (divestment done) Re
Slide 21: CEZ ranks among the ten most important European energy companies
CEZ RANKS AMONG THE TEN MOST IMPORTANT EUROPEAN ENERGY COMPANIES Number of customers millions in 2019 Installed capacity GW in 2020 1 Enel 64.0 1 EdF 122.3 2 E.ON 34.1 2 Engie 96.8 3 EDF 33.6 3 Enel 87.0 4 Iberdrola 29.8 4 Iberdrola 52.1 5 Engie 24.4 5 Fortum 50.3 6 Vattenfall 12.4 6 RWE 43.4 7 CEZ
Slide 22: EBITDA share of fossil-fuel generation was only 10% in 2020
EBITDA SHARE OF FOSSIL-FUEL GENERATION WAS ONLY 10% IN 2020, CUSTOMER PART WAS 38% Trading 4% 65 Mining 6% Fossil-fuel 57 generation Distribution 10% 31% Emission-free sources― Renewables 8% Emission-free Sales sources―nuclear 7% 34% Assets held for divestment 8 EBITDA 2020 (CZK bn) 22
Slide 23: Strategic priorities of the current strategy
STRATEGIC PRIORITIES OF THE CURRENT STRATEGY In 2019, the General Meeting of CEZ approved a new business concept on the proposal of the Board of Directors, which also forms the basis for a new strategy based on 4+1 priorities. CEZ Group’s Main Opportunities CEZ Group’s Strategic Priorities CEZ Group