Press releases pg. 23

The Net Profit was up by 24 percent year on year (CZK 3.5 billion), reaching CZK 17.9 billion, which is the second best result ever recorded by the ČEZ Group in the first calendar quarter. Operating Profit Before Depreciation (EBITDA) rose by CZK 2.1 billion year on year (up by 8%) and ended at CZK 28.3 billion. The primary factor that contributed to the year-on-year profit growth was the termination of business activities in Albania combined with extraordinary profits from trading in emission allowances, and also Energotrans’ integration in the ČEZ Group. Thus, the ČEZ Group has so far successfully compensated the adverse trend of declining electricity prices and the unfavorable developments in the European energy sector.

Despite negative market developments, the ČEZ Group managed to fulfill its planned financial results. Revenues rose by more than CZK 5 billion year on year, reaching CZK 215.1 billion. Operating Profit Before Tax (EBITDA) declined by 2.1% year on year (by CZK 1.8 billion) to CZK 85.5 billion, but exceeded expectations by 0.5 billion. Net Profit showed just a slight year-on-year slip by 1.5% to CZK 40.2 billion (CZK 0.2 billion more than expected). In 2013, the ČEZ Group expects its EBITDA to reach some CZK 80 billion, with Net Profit around CZK 37 billion. The expected profit decline reflects the adverse developments in European energy markets, a substantial drop of electricity prices, lower allocations of emission allowances for power generation, and declining power generation in the Czech Republic.

CEZ Group’s Total Sales grew by nearly CZK 12 billion year on year (up by 8%), reaching CZK 162.5 billion. Operating Profit Before Depreciation (EBITDA) rose by CZK 2.3 billion year on year (up by 4%), reaching CZK 64.7 billion. The Net Profit increased by CZK 7 billion year on year (up by 27%) to CZK 33.4 billion. The main cause of the profit growth was a greater volume of power generated in nuclear power plants, growing volume of energy generated by the Romanian wind parks, and extraordinary financial expenses in 2011. On the other hand, there was a negative impact of the developments in Albania, where our agreement on the gradual standardization of regulatory conditions was not honored by the Albanian regulatory authority and the Government.

Comments made by third parties under the market test have shown no need to materially change the commitments proposed by ČEZ to the European Commission in June this year. Under the Settlement Agreement, ČEZ undertakes to sell one of five specific power plants with an installed capacity of at least 800 MW. The European Commission can be expected to make its final and legally binding decision in the matter in late November.