Press releases pg. 25

EBITDA reached CZK 64.3 bn and remained almost unchanged year on year (down by CZK 0.2 bn). The CEZ Group has not changed its expected operating results for the entire year, with EBITDA expected to reach CZK 81 bn. Net Income declined by CZK 1.6 bn to CZK 31.7 bn in a y-o-y comparison. The main factor behind this decline were adjustments to assets created due to regulatory and legislative interventions in the European energy sector and also due to the ongoing trend of declining wholesale prices of electricity. For the same reasons, the CEZ Group has adjusted its all-year Net Income outlook to CZK 35 bn.

EBITDA rose by CZK 0.9 bn (1.9%) year on year to CZK 49.2 bn. Net Income grew by 5.3% y-o-y to CZK 28.6 bn. The CEZ Group has not changed its expected results for the entire year; EBITDA is expected to reach CZK 81 bn and Net Income CZK 37.5 bn. The main factor behind the y-o-y Net Income growth was the end of operations in Albania, correction factors for distribution in the Czech Republic, and trading in emission allowances. Negative factors included in particular declining electricity prices, a lower quantity of emission allowances allocated for production, and the overall uncertainty concerning the future direction of the energy sector.

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.