�In 2015, the Government of the Czech Republic approved the “National Action Plan for the Development of Nuclear Energy” which included the development of our nuclear power plants. The Plan envisages continued preparation of projects for new nuclear sources, both at the Temelín and Dukovany sites, with the variant having 2 blocks, and the subsequent construction of another block, at each site (with the option to expand to two blocks). The implementation of the plan presumed the establishment of Special Purpose Vehicles (SPV) for the construction of nuclear blocks at the Dukovany and Temelín sites, to which projects of new nuclear sources (NNS) at the two sites will be hived off. The SPVs Elektrárna Temelín II, a. s. and Elektrárna Dukovany II, a. s. were established at the end of 2015, and assets were hived off and transferred to the two companies on the basis of a decision of the ČEZ, a. s. General Meeting of 1 October 2016.

ČEZ commenced the process of hiving the projects off to SPVs in 2015, in the form of an organisational change in its Sales and Strategy Division, followed by the establishment of two new subsidiaries – Elektrárna Temelín II, a. s. and Elektrárna Dukovany II, a. s.

The variant with fully integrated subsidiaries making use of services of ČEZ Group divisions was chosen. This variant also meets the requirement of ensuring cooperation in the preparation of projects at both sites, offering flexibility of solutions in view of the uncertainties of future development, and further use of the capacities of the existing department “Nuclear Power Plant Construction” in supporting other projects of the ČEZ Group.

Hiving projects off to SPVs increases flexibility in the selection of a business and investor model of the development of both projects, while retaining their value to the maximum degree, and making it possible to finance both projects transparently. This will enable the use of both debt financing and equity financing via the capital entry of