Press releases pg. 76

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. The Board of Directors will propose a gross dividend amounting to CZK 40 per share (nominal value CZK 100), the same as last year. General meeting of Shareholders will take place on 27 June 2014.

Today ČEZ cancelled the procurement procedure in accordance with Public Procurement Act for construction of two nuclear units in the location of Temelin nuclear power plant and subsequently sent a relevant notice on cancellation of procurement procedure for public contract to participants. Information was received by all participants – consortium of Westinghouse Electric Company LLC and Westinghouse Electric Czech Republic s.r.o., consortium of ŠKODA JS, Atomstroyexport and Gidropress and also earlier excluded AREVA NP.

The Supervisory Board of ČEZ has today discussed a proposal for a change in the corporate organizational structure that would ensure that each of the Members of the Board of Directors will once again be responsible for a corresponding division. The newly defined divisions also respond to the current developments in the European energy sector where the impacts of regulation and legislation on business have become ever more evident. At the same time, the responsibility for management areas in the CEZ Group will be evenly distributed across all members of the Board of Directors, thus ensuring a greater management effectiveness. All changes will take effect as of 1 May 2014.

The CEZ Group has exceeded the originally estimated results for 2013. Operating Profit Before Tax (EBITDA) decreased by 4.4% year on year to CZK 82.1 bn, exceeding the expected value by CZK 1.1 bn. Its Net Profit declined by 12.3% year on year to CZK 35.2 bn (CZK 0.2 bn above the expectations). The main factor behind the year-on-year decline is a major drop of the wholesale prices of electricity due to massive subsidies going into renewable energy sources, combined with a stagnating European economy and ongoing uncertainty concerning the regulatory environment in the energy sector. In 2014, the CEZ Group expects its EBITDA to reach CZK 70.5 bn and its Net Profit approximately at CZK 27.5 bn.