Cez As · PSECZ:CEZ
Cez As — H1 2023 Earnings Presentation
41 slides from Cez As's earnings presentation, Aug 10, 2023
Slide 1: Report on CEZ Group Financial Results for H1 2023
CLEAN ENERGY OF TOMORROW Report on CEZ Group Financial Results for H1 2023 Nonaudited consolidated results prepared in accordance with International Financial Reporting Standards (IFRS) Aug 10, 2023 www.cez.cz 1
Slide 2: Agenda
Agenda Financial Highlights and Selected Events Generation and Mining Distribution and Sales www.cez.cz 2
Slide 3: Financial Highlights for H1 and Annual Outlook
Financial Highlights for H1 and Annual Outlook (CZK bn) H1/2022 H1/2023 Difference % Operating revenues 130.5 169.7 +39.2 +30% EBITDA 59.3 62.4 +3.1 +5% EBIT 44.2 45.3 +1.1 +2% Net income 33.6 22.3 -11.3 -34% Adjusted net income* 33.6 22.5 -11.2 -33% Operating cash flows 41.7 134.6 +92.9 +223% CAPEX
Slide 4: Main causes of year-on-year change in EBITDA
Main causes of year-on-year change in EBITDA CZK bn 65 +2.4 +1.9 +2.5 -0.9 60 -0.5 -2.4 62.4 55 59.3 CZK +3.1 bn +5% 50 H1/2022 Generating Trading MINING DISTRIBUTION SALES Elimination of H1/2023 facilities Internal Relations* GENERATION GENERATION Segment—Generating facilities (CZK +1.9 bn): ▪ High
Slide 5: Main Causes of Year-On-Year Change in Net Income
Main Causes of Year-On-Year Change in Net Income (CZK bn) H1/2022 H1/2023 Difference % EBITDA 59.3 62.4 +3.1 +5% Depreciation and amortization -15.2 -17.0 -1.9 -12% Impairments of non-current assets* 0.1 -0.0 -0.1 - Other income (expenses) -2.5 -1.2 +1.3 +51% Interest income (expenses) -0.8 0.3 +1.0
Slide 6: Confirming the financial outlook for 2023
Confirming the financial outlook for 2023: EBITDA of CZK 105-115 bn, adjusted net income of CZK 33-37 bn EBITDA (CZK bn) Selected Generation Assumptions of the Current Forecast ▪ Total electricity supply in the Czech Rep. 43 to 45 TWh ▪ Open position of ~7% of electricity supply from generation in 1
Slide 7: Highest dividend in company history: CZK 145 per share
At the June annual Shareholders' Meeting shareholders approved the highest dividend in the company's history: CZK 145 per share Dividend per Share (CZK)* and Payout Ratio (%) ▪ The record date for payment is Jun 30, 2023. ▪ The payout date is from Aug 1, 2023 to Jul 31, 2027. CZK 145 ▪ Shareholders
Slide 8: Agenda
Agenda Financial Highlights and Selected Events Generation and Mining Distribution and Sales www.cez.cz 8
Slide 9: GENERATION Segment EBITDA
GENERATION Segment EBITDA EBITDA (CZK bn)* H1/2022** H1/2023 Difference % Q2/2022** Q2/2023 Difference % Emission-free Generating Facilities, of which: 29.0 27.6 -1.4 -5% 12.9 13.8 +0.9 +7% Nuclear 22.8 21.9 -0.9 -4% 9.9 10.9 +0.9 +9% Renewable 6.2 5.6 -0.7 -11% 3.0 2.9 -0.0 -1% Emission Generating
Slide 10: MINING Segment EBITDA
MINING Segment EBITDA EBITDA (CZK bn) H1/2022 H1/2023 Difference % Q2/2022 Q2/2023 Difference % Czech Rep. 3.1 5.6 +2.5 +81% 1.2 1.8 +0.6 +48% Year-on-year effects in H1 (CZK +2.5 bn): Year-on-year effects in Q2 (CZK +0.6 bn): ▪ Higher revenues from coal supplies to CEZ Group due to price increases
Slide 11: Nuclear and renewable generation (TWh)
Nuclear and renewable generation (TWh) +2% 34.3 -2% 33.7 16.8 17.2 1.9 3.3 3.7 1.6 +15% +14% 15.2 15.3 31.0 -3% 30.0 +1% Renewables Nuclear Facilities H1/2022 H1/2023 2022 2023 E Renewables (+15%) hydro, wind, solar, biomass, biogas Renewables (+14%) Czech Rep. hydro (+31%) Czech Rep. hydro (+20%) +
Slide 12: Electricity generation from coal and natural gas (TWh)
Electricity generation from coal and natural gas (TWh) -22% 10.0 1.2 20.0 0.9 -16% 7.8 2.5 16.4 1.0 1.8 0.7 -18% 1.5 -25% 7.9 6.1 Generation from natural gas 15.7 -5% 14.9 -22% Generation from coal in Poland Generation from coal in the Czech Rep. H1/2022 H1/2023 2022 2023 E Natural gas–fired generat
Slide 13: Emissions of CO2, SO2, and NOX have decreased year-on-year
Emissions of CO2, SO2, and NOX from electricity and heat generation have decreased year-on-year CO2e emission intensity of electricity and heat generation (t CO2e/MWh) 0.80 Estimated CEZ Group’s emission intensity for Marginal plants in Germany electricity and heat generation for 2023 of 0.60 0.28 t
Slide 14: Status of selected price risk hedges of the generation margin
Status of selected price risk hedges of the generation margin in the Czech Rep.* and estimated 2023 generation realized price Emission allowances—status of Electricity—share of hedged deliveries generation hedging in the Czech Rep.* from generation in the Czech Rep.* for for 2023 (as of Jun 30) 2023
Slide 15: Hedging the market risks of generation for 2024–2026
Hedging the market risks of generation in the Czech Rep. for 2024–2026, status as of Jun 30, 2023 Contracted emission allowances* in mil tons Electricity sold in TWh Hedged volume from Apr 1 to Jun 30, 2023 Hedged volume from Apr 1 to Jun 30, 2023 Hedged volume as of Mar 31, 2023 Hedged volume as of
Slide 16: Agenda
Agenda Financial Highlights and Selected Events Generation and Mining Distribution and Sales www.cez.cz 16
Slide 17: DISTRIBUTION segment EBITDA and electricity distributed
EBITDA of the DISTRIBUTION segment and the volume of electricity distributed in the territory of ČEZ Distribuce EBITDA (CZK bn) H1/2022 H1/2023 Difference % Q2/2022 Q2/2023 Difference % Czech Rep. 9.5 9.0 -0.5 -6% 4.4 3.9 -0.4 -10% Year-on-year effects in H1 (CZK -0.5 bn): Year-on-year effects in Q2
Slide 18: SALES segment EBITDA
SALES segment EBITDA EBITDA (CZK bn) H1/2022 H1/2023 Diff % Q2/2022 Q2/2023 Diff % Retail segment–ČEZ Prodej 0.3 0.2 -0.1 -28% 0.5 3.6 +3.1 >200% B2B segment—ESCO companies: 0.0 2.5 +2.6 >200% 0.3 1.1 +0.8 >200% Energy Services—Czech Rep. and Slovakia 0.2 0.5 +0.3 +162% 0.0 0.1 +0.1 >200% Energy Ser
Slide 19: Volume of electricity and gas sold; number of customers
Volume of electricity and gas sold; the number of customers Czech Rep.—Retail Total electricity and gas supply The number of customers decreased by 4% year-on-year increased by 1% year-on-year (TWh) (service points in thousands) 3,268 3,304 8.0 -4% 7.6 +1% ▪ The year-on-year lower deliveries of both
Slide 20: Revenues from the sale of energy services
Revenues from the sale of energy services (CZK bn) 38.2 17.9 +29% +23% 31.7 13.9 17.5 Germany 8.6 +15% (Elevion Group) +7% 16.4 7.4 Czech Rep. and Slovakia (ČEZ +61% ESCO group) +49% 14.3 6.6 9.6 4.1 Other countries* +16% 2.7 (Elevion Group) 5.8 +11% 6.4 2.3 H1/2022 H1/2023 2022 2023 E** Germany—Ele
Slide 21: Annexes
Annexes Selected events and economic results ▪ Annual Shareholders' Meeting ▪ Selected Events in the Past Quarter ▪ Overall operating results and selected information ▪ Net income for Q2 ▪ Operating revenues by segment and country ▪ EBITDA by segment and country ▪ Expected year-on-year change in EBI
Slide 22: Annual Shareholders' Meeting of ČEZ, a. s., June 26, 2023
On Jun 26, 2023, the Annual Shareholders' Meeting of ČEZ, a. s., was held, which as part of the approved agenda: ▪ Heard the reports of the company's bodies ▪ Approved the financial statements of ČEZ, a. s., the consolidated financial statements of CEZ Group and the final financial statements of Ele
Slide 23: Selected Events in the Past Quarter
Selected Events in the Past Quarter Nuclear Industry ▪ Following a public tender, ŠKODA JS will become the supplier of the nuclear fuel assembly containers for Temelín after 2028. ▪ The company's management has confirmed its intention to operate both existing nuclear power plants for at least 60 yea
Slide 24: Overall operating results and selected information
Overall operating results and selected information H1/2022 H1/2023 Difference % Electricity generation TWh 26.8 25.0 -1.8 -7% of which in the Czech Rep. TWh 25.6 23.9 -1.6 -6% Sales of heat TWh 3.9 3.7 -0.2 -5% of which in the Czech Rep. TWh 2.9 2.7 -0.1 -5% Electricity Sales TWh 11.7 12.4 +0.7 +6%
Slide 25: Net income for Q2
Net income for Q2 (CZK bn) Q2/2022 Q2/2023 Difference % EBITDA 15.6 29.8 +14.2 +91% Depreciation and amortization -7.6 -8.7 -1.1 -14% Impairment of non-current assets* 0.1 -0.2 -0.2 - Other income (expenses) 0.2 -1.3 -1.6 - Interest income (expenses) -0.2 0.6 +0.8 - Net Income Adjustments Other 0.5
Slide 26: Operating revenues by segment and country
Operating revenues by segment and country GENERATION (CZK bn) H1/2022 H1/2023 Difference % SALES (CZK bn) H1/2022 H1/2023 Difference % Czech Rep. 91.1 118.1 +27.0 +30% Czech Rep. 56.2 101.6 +45.4 +81% Germany 0.4 0.4 -0.0 -9% Germany 7.6 8.6 +1.0 +13% Poland 3.0 4.7 +1.8 +59% Poland 1.2 1.5 +0.3 +21
Slide 27: EBITDA by segment and country
EBITDA by segment and country GENERATION (CZK bn) H1/2022 H1/2023 Difference % SALES (CZK bn) H1/2022 H1/2023 Difference % Czech Rep. 45.8 44.5 -1.2 -3% Czech Rep. 0.3 2.5 +2.2 >200% Germany 0.3 0.3 -0.0 -12% Germany 0.3 0.4 +0.1 +20% Poland -0.1 0.4 +0.5 - Poland 0.0 0.2 +0.1 >200% Other Countries
Slide 28: Expected year-on-year change in individual business areas
Expected year-on-year change in individual business areas GENERATION (CZK bn) of which Generating Facilities (CZK -12 to -2 bn) EBITDA2022 2022 + Higher realization prices of electricity incl. hedging EBITDA 131.6 – Levy on excess generation revenues (introduced from December 2022) – Lower dispatch
Slide 29: CEZ Group to pay CZK 30–40 bn in extraordinary levies and taxes
In 2023, CEZ Group will pay CZK 30–40 bn to the Czech state in extraordinary levies and taxes Indication of State income from CEZ Group in 2023 Czech Rep.’s income from dividends, (CZK bn) taxes on profits and levies on excess 2023 E revenues of CEZ Group generation Final settlement of income tax pa
Slide 30: Annexes
Annexes Selected events and economic results ▪ Annual Shareholders' Meeting ▪ Selected Events in the Past Quarter ▪ Overall operating results and selected information ▪ Net income for Q2 ▪ Operating revenues by segment and country ▪ EBITDA by segment and country ▪ Expected year-on-year change in EBI
Slide 31: Investment in fixed assets (CAPEX) by segment
Investment in fixed assets (CAPEX) by segment CAPEX (CZK bn) H1/2022 H1/2023 GENERATION 3.9 8.0 Of which: Nuclear fuel procurement 0.8 3.4 MINING 0.7 0.8 DISTRIBUTION 6.6 7.2 SALES 0.9 1.1 Intragroup eliminations -0.1 -0.1 TOTAL CEZ GROUP 12.1 16.9 Main causes of year-on-year change: GENERATION: ▪ N
Slide 32: Credit lines and debt structure as of Jun 30, 2023
Credit lines and debt structure as of Jun 30, 2023 Committed bank credit facilities Bond maturity profile (CZK bn) UNDRAWN 20 CZK 71.8 bn 15 DRAWN EUR Available CZK 0.012 bn credit 10 USD facilities* 5 JPY * Available committed bank credit facilities include an 0 2023 2024 2025 2026 2027 2028 2030 2
Slide 33: Net debt decreased by CZK 113 bn
Net debt decreased by CZK 113 bn. The main contributor beyond EBITDA was a reduction in margin deposits on commodity exchanges. +19.3 +53.6 42.7 -19.0 -0.2 155.7 +62.4 Decrease in net debt -3.1 by CZK 113 bn* 1.2 Net debt / Annual EBITDA 0.3 ▪ Interest, income taxes (CZK -3.1 bn): income taxes paid
Slide 34: Currency and Commodity Hedging of Generation 2024–2026
Currency and Commodity Hedging of Generation in the Czech Rep. in 2024–2026, Status as of Jun 30, 2023 Currency Hedge of Expected EUR Cash Flow* From Electricity Generation in the Czech Republic 2024 2025 2026 Total currency hedge of EUR CF from generation* 91% 76% 49% Natural currency hedge (debt a
Slide 35: Annexes
Annexes Selected events and economic results ▪ Annual Shareholders' Meeting ▪ Selected Events in the Past Quarter ▪ Overall operating results and selected information ▪ Net income for Q2 ▪ Operating revenues by segment and country ▪ EBITDA by segment and country ▪ Expected year-on-year change in EBI
Slide 36: Market developments from Jan 1, 2022 to Jun 30, 2023
Market developments from Jan 1, 2022 to Jun 30, 2023 CO2 emissions allowances CZK ČEZ shares EUR/t (delivery in 12/2024) 1,300 120 100 1,100 80 900 60 700 40 Electricity EUR/MWh (BL delivery in 2024 and 2025) USD/t Coal and gas EUR/MWh 500 500 500 400 400 400 300 300 300 200 200 200 100 100 100 0 0
Slide 37: Electricity balance (GWh)
Electricity balance (GWh) Index Q1 - Q2 2022 Q1 - Q2 2023 2023/2022 Electricity procured 24,170 22,515 -7% Generated in-house (gross) 26,793 24,951 -7% In-house and other consumption, including pumping in pumped-storage plants -2,623 -2,436 -7% Sold to end customers -11,682 -12,412 +6% Sold in the w
Slide 38: Electricity balance (GWh) by segment
Electricity balance (GWh) by segment Q1 - Q2 2023 Generation Distribution Sale Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 22,335 - 0 - 180 - 0 - 22,515 -7% Generated in-house (gross) 24,732 - 0 - 219 - 0 - 24,951 -7% In-house and other consumption, including
Slide 39: Electricity balance (GWh) by country
Electricity balance (GWh) by country Q1 - Q2 2023 Czechia Poland Germany Others Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 21,626 - 708 - 160 - 20 - 0 - 22,515 -7% Generated in-house (gross) 23,930 - 838 - 160 - 23 - 0 - 24,951 -7% In-house and other
Slide 40: Definitions and Calculations of Indicators Unspecified in IFRS
Definitions and Calculations of Indicators Unspecified in IFRS In accordance with ESMA guidelines, ČEZ provides detailed information on indicators that are not reported as standard in IFRS financial reporting framework or the components of which are not directly available from financial statements a
Slide 41: Calculation of components of indicators
Most of the components used in the calculation of individual indicators are directly shown in financial statements. The components of calculations that are not included in the financial statements are usually shown directly in a company’s books and are calculated as follows: Highly Liquid Financial