Press releases pg. 9

ČEZ, a. s. with its seat at Prague 4, Duhová 2/1444, the Czech Republic (“CEZ”), is currently considering the disposal of its Bulgarian subsidiary CEZ ESCO Bulgaria EOOD, Id. No. 204 51 65 71, with its registered office at Sofia, Mladost District, 159 Tsarigradsko Shosse Blvd., BenchMark Business Centre, Post Code 1784, Bulgaria (the “Subsidiary”), indirectly owned by CEZ through its subsidiary CEZ Bulgarian Investments B.V., having its registered office at Herikerbergweg 157, 1101 CN Amsterdam, the Netherlands, and will be seeking submission of binding offers for acquisition of 100 % ownership interest in the Subsidiary (the “Transaction”).

Operating results for H1 are in line with the initial ambitions; CEZ Group increases its full-year outlook for EBITDA to CZK 58 to 60 billion and net profit adjusted for extraordinary items to CZK 18 to 20 billion. EBITDA reached CZK 31.6 billion in H1, a year-on-year decrease of CZK 7.1 billion. However, the year-on-year comparison was affected by the sale of Romanian assets in Q1 2021 and specific temporary market effects of CZK 3.9 billion due to the revaluation of hedging contracts for production supplies, mainly due to last year's drop in commodity prices on wholesale markets following the spread of the COVID-19 pandemic to Europe. Nevertheless, we have seen a positive development across all segments throughout the year, which is why we are raising our full-year EBITDA outlook to CZK 58 to 60 billion and net profit adjusted for extraordinary items to CZK 18 to 20 billion as a result.

ČEZ has intensified its transition to future emission-free energy. This is in line with its strategy that primarily aims at transforming its production portfolio to low emissions by 2030, becoming carbon neutral by 2050, and offering the best energy solutions and customs experience in the market. Vision 2030, referred to as the Clean Energy of Tomorrow, confirms CEZ Group’s ambition to be a leader in sustainable development in the Czech Republic as well as in the entire Central Europe.

The financial results for Q1 are in line with initial expectations; ČEZ Group confirms the full-year outlook for operating profit before depreciation (EBITDA) of CZK 57 to 60 billion and net profit adjusted for extraordinary items at CZK 17 to 20 billion. Operating profit before depreciation (EBITDA) in Q1 reached CZK 19.9 billion, down CZK 6 billion year-on-year. The year-on-year comparison was affected by specific temporary market effects of CZK 3.6 billion due to the revaluation of hedging contracts for production supplies, mainly due to last year's drop in commodity prices on wholesale markets in 2020 Q1 following the spread of the Covid-19 pandemic to Europe. In addition, in Q1 last year, ČEZ achieved a record profit from speculative trading in commodities of almost CZK 3 billion.