Press releases pg. 73

Earnings before depreciation (EBITDA) reached 72.5 billion CZK in 2014, which is CZK 2 billion more than originally anticipated. This result was achieved in spite of unfavourable weather conditions and negative development in power sector regulations. Net profit adjusted for extraordinary influences reached CZK 29.5 billion. Market capitalization grew by CZK 35.3 billion to CZK 315.7 billion in 2014 and thus CEZ became the most valuable company in all of the new EU membership countries. Settlement agreement with Albania and the successful start of an ambitious savings program contributed to these good results. Thanks to active measures, the CEZ Group expects EBITDA to be approximately CZK 70 billion in 2015.

The decision of arbitration panel about ČEZ’ claims in an arbitration initiated in 2009 on the grounds of breached contractual conditions in a project for the reconstruction of an old power plant and the construction of a new power plant of Gacko in Bosnia and Herzegovina was settled today. ČEZ received damages totalling approximately EUR 7.5 million in exchange for signing a share purchase agreement concerning joint holding company.

Over the first nine months of this year, the CEZ Group recorded CZK 147 bn in Operating Revenue, with its Operating Profit Before Depreciation (EBITDA) reaching CZK 54.7 bn and the Net Earnings ending at CZK 19.6 bn. Since all conditions precedent defined in the Settlement Agreement made with the Albanian Government have been fulfilled, the CEZ Group has raised its outlook for the all-year EBITDA to CZK 72.0 bn. The Albanian Government should gradually repay a total of EUR 100 million, with the installments being fully guaranteed by a renown European bank. ČEZ will thus obtain an amount close to the value of its original investment.

On the premises of the Secretariat of the Energy Community in Vienna, the Parties mutually confirmed that all conditions precedent had been fulfilled; thus, the Settlement Agreement took effect as made between companies of the CEZ Group and Albania in June of this year. According to the Agreement, ČEZ is going to receive a total of EUR 100 million, an amount similar to its initial investment in acquiring the Albanian power distribution company.