Press releases pg. 19

CEZ Group’s net income in Q1 2016 was CZK 10bn, which is a 32% increase year-on-year. EBITDA grew by 5% year-on-year. The growth was achieved in spite of a further decrease in wholesale electricity prices, primarily thanks to the Company’s successful business strategy.

At today´s meeting the Board of Directors of the power company CEZ decided on date of General Meeting of Shareholders and on proposal of the sum of the dividend from the last year’s profit to be submitted to the General Meeting of Shareholders.

Net income adjusted for extraordinary effects was CZK 27.7bn in 2015, which exceeds original expectations by more than CZK 700m despite a further decrease in the realization prices of generated electricity and lower production in nuclear power plants. A positive effect was derived especially from the refund of a portion of tax on emission allowances from 2011 and 2012 and a successfully implemented program of savings and pro-growth measures. CEZ Group managed to cut fixed costs by CZK 3bn while increasing total revenues to CZK 210bn, primarily thanks to increased sales of electricity, gas, and heat to end customers.

Operating Profit Before Depreciation (EBITDA) for the first half of this year reached CZK 35.5 bn while Net Profit adjusted for extraordinary items reached CZK 15.7 bn. Despite the continuing decline in the electricity selling prices, Operating Revenue rose to CZK 102.9 bn, primarily due to growing volumes of power, gas and heat sold to end customers. CEZ Group expects to generate a Net Profit adjusted for extraordinary items at CZK 27 bn by the year end.