CEZ's Consolidated Quarterly Report on Operational, Economic and Financial Results for 2001, in accordance with IFRS

Main Features

• Demand for electricity (53.8 TWh) increased by 2.8%
• ČEZ power plants' share in the electricity wholesale market increased from 57.4% to 58.9%; ČEZ's share (including repurchased electricity) increased from 64.9% to 65.6%
• Net income was CZK 9.1 bn, an increase of CZK 1.9 bn (by 26.1%)
• Maximum load reached 10,604 MW (on 13 December 2001), 4.7% (476 MW) higher than in 2000
• The number of employees decreased by 1,243 (by 14.1%)
• Operating activities exceeded investment requirements, allowing a sum of CZK 6.6 bn to be used for the reduction of the long-term debt
• Tests of the 1^st unit of Temelín Nuclear Power Station up to 100% power levels in January 2002; the fuel for the 2^nd reactor was loaded at the beginning of March 2002

Prague, 17 April 2002

Income Statement in Accordance with International Financial Reporting Standards	31 Dec 2001		31 Dec 2000	Index 01/00
	CZK m	EUR m	CZK m
Operating revenues	56,597	1,770	52,692	107.4%
Operating expenses	41,684	1,303	39,837	104.6%
Fuel	13,220	413	12,800	103.3%
Purchased power and related services	6,389	200	5,436	117.5%
Depreciation and amortization	9,336	292	9,349	99.9%
Operating income	14,913	466	12,855	116.0%
Other expenses (income)	1,621	51	2,254	71.9%
Income before income taxes	13,292	416	10,601	125.4%
Income taxes	4,169	130	3,364	123.9%
Net income	9,123	285	7,237	126.1%
	Unit	31 Dec 2001	31 Dec 2000	Index 01/00
Earnings per share (EPS)	CZK	15.5	12.2	127.0%
Price/earning ratio (P/E)	1	5.0	8.3	60.2%
Return on equity (ROE) net	%	6.9	5.8	119.0%
Return on total assets (ROA) net	%	4.0	3.3	121.2%
Assets turnover	1	0.25	0.24	104.2%
Total indebtedness (provisions excluded)	%	29.8	30.9	96.4%
Long-term indebtedness	%	18.8	22.5	83.6%

Revenues, Expenses, Income

Our Income Statements, Balance Sheets, and Cash Flow Statements have been converted from Czech Accounting Standards to International Financial Reporting Standards (IFRS) and may differ significantly from the same data prepared according to Czech Accounting Standards. The data presented include the fully consolidated data from ČEZ and ČEPS, and the data from equity earnings of the affiliated company (37.21% of the profit came from Severočeské doly). In 2001 the Company adopted International Accounting Standard IAS 39, Financial Instruments: Recognition and Measurement. Following the introduction of IAS 39, all derivative financial instruments have been recognized as assets or liabilities. The opening balance of retained earnings as at 1 January 2001 has been adjusted. Prior year comparative figures have not been restated.

Net income for 2001 amounted to CZK 9.1 bn, an increase of CZK 1.9 bn (26.1%) in comparison with the previous year. This improvement resulted from higher EBIT (by CZK 2.1 bn) and a better exchange rate for the Czech crown (by CZK 2.3 bn). The exchange rate losses in 2000 were CZK 0.2 bn, while the current exchange rate gains are CZK 2.1 bn.

ČEZ’s turnover was CZK 56.6 bn in total, CZK 3.9 bn (7.4%) higher than in 2000.

Operating expenses came to CZK 41.7 bn and were CZK 1.8 bn (4.6%) higher than in 2000.

Other expenses decreased to CZK 1.6 bn (by CZK 0.6 bn) compared with the previous year. This resulted, as mentioned, from exchange rate changes, as well as from changes in the foreign currency portion of the debt (a decrease of CZK 2.3 bn), while other expenses, net increased by CZK 1.7 bn due to the adoption of IAS Standard 39.

Income taxes (CZK 4.2 bn) increased by 23.9% (CZK 0.8 bn) compared with the year 2000.

Earnings per share rose from 12.2 CZK to 15.5 CZK due to an increase in profits. The price earnings ratio fell from 8.3 to 5.0 due to a decrease (by 23.3%) in share prices, while profits increased by 26.1%. The net return on equity increased from 5.8% to 6.9% thanks to a rise in profits, partially compensated by a slight increase in the average equity. The net return on total assets increased (from 3.3% to 4.0%) as a result of a higher rise in profits compared to a slight increase in the average value of total assets. Assets turnover remained at the same level. Total indebtedness ( provisions excluded) decreased to 29.8%; long-term indebtedness also fell, to 18.8%.

At 31 December 2001 the number of ČEZ employees stood at 7,552 compared to 8,795 on 31 December 2000 - a 14.1% drop (1,243 employees).

Sale of Electricity

Revenues from sales of electricity (CZK 53.3 bn) increased by CZK 3.6 bn (7.3%) for several reasons, e.g. a change of the fee and the calculation base for auxiliary services. REAS (the regional distribution companies) now pay ČEPS fees which are higher and which are charged on all electricity delivered by them to the final consumers (and not, as was the case in 2000, just on electricity sold by ČEZ to REAS). The sale of electricity to regional distribution companies was 36,942 GWh, an increase of 377 GWh (1.0%). Exports of electricity 12,122 GWh were lower by 2.5%. ČEZ succeeded in eliminating almost completely the impact of the E.ON contract cancellation and the bankruptcy of ENRON at the end of 2001.

Demand for electricity in the Czech Republic of 53.8 TWh was up compared to 2000 by 1,483 GWh (2.8%). High voltage consumption increased as a whole by 827 GWh (by 2.6%). Low voltage consumption rose by 655 GWh (by 3.1%), of which in the commercial sector by 3.4% and households by 3.0%, partially due to the fact that temperatures were lower in 2001 by 1.1°C.

ČEZ power plants met 58.9% of the market demand for electricity in the Czech Republic compared to 57.4% in the previous year. This was due to an increase in ČEZ sales in the Czech electricity market and a decline in the production and consumption of other domestic producers. ČEZ's share in meeting demand for electricity (including repurchased electricity from inland and abroad) went up by 0.7% to 65.6%.

Investment Programme

In total, capital investments amounted to CZK 15.2 bn, CZK 6.2 bn less than in the previous year.

In 2001 CZK 4.3 bn was spent on Temelín NPP. At the end of 2001 tests on the 1st unit with output of 90% continued and in January 2002 all these tests were successfully finished; based on permission from the State Office for Nuclear Safety the reactor output was put up to 100%. The planned inspection of technological equipment and replacement valves (made in Germany) in the secondary part of the NPP began in the second half of February 2002. At the beginning of March 2002 nuclear fuel was loaded into the second reactor of Temelín NPP.

Financing

In 2001 ČEZ fulfilled all its financial commitments. Net cash provided by operating activities slightly increased to CZK 21.8 bn (by 0.4%). Given that only CZK 15.2 bn was spent on investments, this made possible to reduce long-term borrowings by CZK 6.6 bn despite the fact that CZK 1.2 bn was paid to shareholders in dividends (arranged by Česká spořitelna).

In January 2002 revolving credit totalling USD 70 m was renewed. The manager of the revolving credit is Sumitomo Mitsui Banking Corporation.

Current credit rating for ČEZ	from Moody’s
	from Standard&Poor’s	- 'BBB+' with a stable outlook.

Other information

The government of the Czech Republic decided, under Decree No. 967/2000 of 4 October 2000, to privatize ČEZ and six regional distribution companies. None of the potential investors fulfilled requirements set by the Czech government, so the tender was cancelled.

The government then adopted a new strategy enabling ČEZ to acquire a majority in five and a minority stake in three regional distribution companies by the transfer of shares from the National Property Fund and, conversely, the transfer of a majority stake in ČEPS from ČEZ to the National Property Fund.

A very important event in 2002 was the first phase of electricity market liberalization in the Czech Republic for final consumers with an annual consumption of more than 40 GWh (including REAS), which has opened up the market fully for producers.

The coal power plants at Tušimice, Chvaletice, Počerady, and Dětmarovice, and Dukovany Nuclear Power Plant were awarded the internationally recognized Environmental Management System Certificate.

By the end of 2001, ČEZ had signed sale contracts for 90% of expected electricity production for the Czech market, thanks especially to the successful Rainbow Power strategy

Income Statement in Accordance with International Financial Reporting Standards (IFRS) (CZK m)	31 Dec 2001	31 Dec 2000
Operating revenues	56,597	52,692
Sales of electricity	53,300	49,675
Heat sales and other revenues	3,297	3,017
Operating expenses	41,684	39,837
Fuel	13,220	12,800
Purchased power and related services	6,389	5,436
Repairs and maintenance	3,476	3,316
Depreciation and amortization	9,336	9,349
Salaries and wages	3,946	3,793
Materials and supplies	1,851	1,954
Other operating expenses	3,466	3,189
Income before other expenses/income and income tax	14,913	12,855
Other expenses/income	1,621	2,254
Interest income	-177	-188
Interest on debt, net of capitalized interest	796	1,015
Interest on nuclear provisions	1,463	1,265
Foreign exchange rate losses (gains)	-2,110	216
Other expenses/income, net	2,009	265
Income from associate	-360	-319
Income before income tax	13,292	10,601
Income taxes	4,169	3,364
Net income	9,123	7,237

Cash Flow in Accordance with International Financial Reporting Standards (IFRS) (CZK m)	31 Dec 2001	31 Dec 2000
Cash and cash equivalents at beginning of period	3,219	4,357
Operating activities:	21,762	21,674
- Income before income taxes	13,292	10,601
- Depreciation and amortization and asset write-offs	9,429	9,406
- Amortization of nuclear fuel	1,644	1,630
- Provision for nuclear decommissioning and fuel storage	387	398
- Changes in assets and liabilities	913	-461
Investing activities	-15,155	-21,308
Financing activities	-6,372	-1,490
Net effect of currency translation in cash	-89	-14
Cash and cash equivalents at end of period	3,365	3,219

	31 Dec 2001	31 Dec 2000
Net electricity generation in the Czech Republic (GWh)	68,797	67,762
Electricity supply from ČEZ power plants - net (GWh)	47,961	46,761
Electricity sold by ČEZ in the Czech Republic (GWh)	38,721	37,394
- Electricity sold by ČEZ to REAS (GWh)	36,942	36,565
- Price of electricity sold to REAS (CZK/MWh)	948	933*
ČEZ´s electricity exports (GWh)	12,122	12,429
ČEZ´s + ČEPS´s electricity imports (GWh)	828	814

Balance Sheet in Accordance with International Financial Reporting Standards (IFRS) (CZK m)	31 Dec 2001	31 Dec 2000
Assets	229,027	222,260
Fixed assets	216,306	211,384
Plant in service	180,069	177,181
Less accumulated provision for depreciation	92,431	84,228
Net plant in service	87,638	92,953
Nuclear fuel, at amortized cost	5,967	5,764
Construction work in progress	111,929	103,591
Investment in associate	5,518	5,225
Investments, net	4,110	2,935
Intangible assets, net	1,144	916
Current assets	12,721	10,876
Cash and cash equivalents	3,365	3,219
Receivables, net	3,933	4,032
Income tax receivable	0	0
Materials and supplies, net	2,489	2,268
Fossil fuel stock	657	712
Other current assets	2,277	645
Shareholders´ equity and liabilities	229,027	222,260
Shareholders´ equity	136,726	129,442
Stated capital	59,050	59,209
Retained earnings	77,676	70,233
Long-term liabilities	64,477	70,606
Long-term debt, net of amount due within one year	43,081	49,704
Accumulated provision for nuclear decommissioning and fuel storage	21,396	20,902
Deferred income taxes, net	9,870	8,057
Current liabilities	17,954	14,155
Short-term loans	514	1,104
Current portion of long-term debt	5,126	4,703
Trade and other payables	8,651	5,035
Income tax payable	953	643
Accrued liabilities	2,710	2,670

Consolidated Statement of Shareholders´ Equity in accordance with IFRS (CZK m)	Stated Capital	Retained Earnings	Total
31 December 1998	59,209	58,706	117,915
Net Income - 1999		4,290	4,290
31 December 1999	59,209	62,996	122,205
Net Income - 2000		7,237	7,237
31 December 2000, as previously reported	59,209	70,233	129,442
Effect of adopting IAS 39		-496	-496
1 January 2001, as restated	59,209	69,737	128,946
Net Income - 2001		9,123	9,123
Acquisition of treasury shares	-159		-159
Dividends declared		-1,184	-1,184
31 December 2001	59,050	77,676	136,726

Capacity, Employees	31 Dec 2001	31 Dec 2000
ČEZ Installed capacity (MW)	10,146	10,146
Number of employees (pers)	7,552	8,795
Specific number of employees (pers/MW)	0.744	0.867

*/ The 2000 price is adjusted for the subsequent change in the transfer and control service fee, which regional distribution companies have paid directly to ČEPS, a. s. since 2001.