Cez As · PSECZ:CEZ
Cez As — Q1 2023 Earnings Presentation
39 slides from Cez As's earnings presentation, May 11, 2023
Slide 1: Report on CEZ Group Financial Results for Q1 2023
CLEAN ENERGY OF TOMORROW Report on CEZ Group Financial Results for Q1 2023 Nonaudited consolidated results prepared in accordance with International Financial Reporting Standards (IFRS) May 11, 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: Q1 results, full-year outlook, and dividend proposal
Q1 results, full-year outlook, and dividend proposal (CZK bn) Q1 2022 Q1 2023 Difference % Operating Revenues 76.0 93.4 +17.4 +23% EBITDA 43.7 32.5 -11.1 -26% EBIT 36.2 24.3 -11.9 -33% Net income 26.7 10.8 -15.9 -59% Adjusted net income* 26.7 10.8 -15.9 -60% Operating cash flow 33.5 79.1 +45.6 +136%
Slide 4: Main causes of year-on-year change in EBITDA
Main causes of year-on-year change in EBITDA CZK bn 50 +1.0 45 40 +2.0 35 -4.6 30 43.7 -0.1 -1.5 CZK -11.1 bn -7.4 -0.6 25 -26% 32.5 20 Q1 2022 Generating Trading Specific MINING DISTRIBUTION SALES Intragroup Q1 2023 facilities temporary eliminations* GENERATION effects 2022 GENERATION Segment—Gener
Slide 5: Main Causes of Year-On-Year Change in Net Income
Main Causes of Year-On-Year Change in Net Income (CZK bn) Q1 2022 Q1 2023 Difference % EBITDA 43.7 32.5 -11.1 -26% Depreciation and amortization -7.6 -8.4 -0.8 -10% Asset impairments* 0.1 0.1 +0.1 +97% Other income (expenses) -2.8 0.1 +2.9 - Net interest expense -0.5 -0.3 +0.2 +37% Other -2.2 0.4 +2
Slide 6: Financial Outlook for 2023: EBITDA CZK 105–115 bn, adjusted net income CZK 33–37 bn
Financial Outlook for 2023: EBITDA CZK 105–115 bn, adjusted net income CZK 33–37 bn EBITDA (CZK bn) Selected Reasons for the Revision of the Financial Outlook as Compared to the Forecast of Mar 21, 2023 – Decrease in the expected realized price of electricity generated in the Czech Rep. due to a sig
Slide 7: Highest dividend in the Company's history: CZK 117 per share
The ČEZ Board of Directors approved the proposal for the highest dividend in the Company's history: CZK 117 per share Dividend per Share (CZK)* and Payout Ratio (%) ▪ The proposal is in line with the company's current dividend policy (payout ratio 60-80%). ▪ The proposal corresponds to 80% of CEZ Gr
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)* Q1 2022** Q1 2023 Difference % Zero-emission Generation facilities 16.2 13.7 -2.5 -16% Of which: Nuclear 13.0 11.1 -1.8 -14% Renewable 3.2 2.7 -0.6 -18% Fossil-fuel Generation Facilities 7.8 11.2 +3.4 +43% Trading 5.4 0.8 -4.6 -86% Specific temporary 2022 e
Slide 10: MINING Segment EBITDA
MINING Segment EBITDA EBITDA (CZK bn) Q1 2022 Q1 2023 Difference % Czech Rep. 1.9 3.9 +2.0 +102% ▪ Higher revenues from coal supplies to CEZ Group mainly due to price increase (CZK +1.5 bn) ▪ Higher external sales mainly due to price increase (CZK +0.9 bn) ▪ Higher fixed expenses (CZK -0.4 bn), main
Slide 11: Nuclear and renewable generation (TWh)
Nuclear and renewable generation (TWh) +6% 9.4 34.3 -2% 33.7 8.9 1.0 3.3 3.7 0.9 +9% +13% 8.5 31.0 8.1 +5% -4% 29.9 Renewables Nuclear Facilities 1-3/2022 1-3/2023 2022 2023 E Renewables (+9%) hydro, wind, solar, biomass, biogas Renewables (+13%) Czech Rep. hydro (+17%) Czech Rep. hydro (+21%) + Bet
Slide 12: Electricity generation from coal and natural gas (TWh)
Electricity generation from coal and natural gas (TWh) -22% 6.0 20.0 0.7 -18% 4.7 2.5 0.6 1.8 16.2 0.6 -15% 1.6 0.4 -27% 4.7 -7% 3.7 Generation from natural gas 15.7 14.6 -22% Generation from coal in Poland Generation from coal in the Czech Rep. 1-3/2022 1-3/2023 2022 2023 E Coal-fired generation in
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 Expected 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 in the Czech Rep.
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 2023 (as of Mar 31) for 2023
Slide 15: Hedging the market risks of generation in the Czechia for 2024–2026
Hedging the market risks of generation in the Czechia for 2024–2026, Status as of Mar 31, 2023 Contracted emission allowances* in mil t Electricity sold in TWh Hedged volume from Jan 1 to Mar 31, 2023 Hedged volume from Jan 1 to Mar 31, 2023 Hedged volume as of Dec 31, 2022 Hedged volume as of Dec 3
Slide 16: Agenda
Agenda Financial Highlights and Selected Events Generation and Mining Distribution and Sales www.cez.cz 16
Slide 17: EBITDA of the DISTRIBUTION segment and electricity distributed
EBITDA of the DISTRIBUTION segment and the volume of electricity distributed in the territory of ČEZ Distribuce EBITDA (CZK bn) Q1 2022 Q1 2023 Difference % Czech Rep. 5.2 5.1 -0.1 -2% ▪ Lower gross margin from electricity distribution (CZK -0.2 bn) mainly due to lower volume of distributed electric
Slide 18: SALES segment EBITDA
SALES segment EBITDA EBITDA (CZK bn) Q1 2022 Q1 2023 Difference % Retail segment–ČEZ Prodej -0.2 -3.4 -3.2 >200% B2B segment—ESCO companies: -0.3 1.5 +1.8 - Energy Services—Czech Rep. and Slovakia 0.2 0.4 +0.2 +136% Energy Services—Germany and other countries* 0.2 0.2 +0.0 +15% Commodity Sales—Czech
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 natural gas The number of customers supply decreased by 5% year-on- increased by 2% year-on-year year (TWh) (service points in thousands) 3,243 3,303 5.2 -5% +2% 4.9 ▪ Year-on-year lower commodity sup
Slide 20: Revenues from the sale of energy services (CZK bn)
Revenues from the sale of energy services (CZK bn) 37.7 +27% 8.9 +19% 31.7 7.0 17.2 4.1 Germany +12% (Elevion Group) +5% 16.4 3.6 Czech Rep. and Slovakia (ČEZ +62% ESCO group) +49% 14.3 3.5 9.6 2.2 Other countries* +12 % (Elevion Group) 5.8 +7% 6.2 1.1 1.3 1-3/2022 1-3/2023 2022 2023 E** Germany—Ele
Slide 21: Annexes
Annexes Selected events and economic results ▪ Selected Events in the Past Quarter ▪ Total operating results ▪ Operating revenues by segment and country ▪ EBITDA by segment and country ▪ Expected year-on-year change in EBITDA by segment ▪ Estimated taxes to the Czech state in 2023 Investments, devel
Slide 22: Selected Events in the Past Quarter
Selected Events in the Past Quarter Strengthening the energy security of the Czech Rep. ▪ Nuclear fuel for the Dukovany Nuclear Power Plant was secured from non-Russian suppliers. ▪ Contract with Westinghouse was signed for supplies from 2024. Development of renewables ▪ Czech Rep.: On April 11, 202
Slide 23: Overall operating results and selected information
Overall operating results and selected information Q1 2022 Q1 2023 Difference % Electricity generation TWh 14.9 14.1 -0.8 -5% of which in the Czech Rep. TWh 14.2 13.5 -0.7 -5% Sales of heat TWh 2.8 2.6 -0.2 -7% of which in the Czech Rep. TWh 2.0 1.9 -0.1 -6% Q1 2022 Q1 2023 Difference % Electricity
Slide 24: Operating revenues by segment and country
Operating revenues by segment and country GENERATION (CZK bn) Q1 2022 Q1 2023 Difference % SALES (CZK bn) Q1 2022 Q1 2023 Difference % Czech Rep. 57.0 72.2 +15.2 +27% Czech Rep. 30.7 57.0 +26.2 +85% Germany 0.3 0.2 -0.0 -12% Germany 3.7 4.1 +0.4 +12% Poland 1.8 2.7 +0.9 +51% Poland 0.6 0.7 +0.1 +23%
Slide 25: EBITDA by segment and country
EBITDA by segment and country GENERATION (CZK bn) Q1 2022 Q1 2023 Difference % SALES (CZK bn) Q1 2022 Q1 2023 Difference % Czech Rep. 36.4 25.4 -10.9 -30% Czech Rep. -0.3 -1.9 -1.6 >200% Germany 0.2 0.2 -0.0 -14% Germany 0.2 0.2 +0.0 +5% Poland 0.1 0.1 +0.1 +67% Poland 0.0 0.1 +0.1 >200% Other Count
Slide 26: Expected year-on-year change in individual business areas
Expected year-on-year change in individual business areas (CZK bn) GENERATION EBITDAS2022 2022 131.6 of which Generation Facilities (CZK -15 to -5 bn)* + Higher realization prices of electricity incl. hedging – Levy on generation revenues above price caps (introduced from December 2022) – Lower util
Slide 27: In 2023, CEZ Group will pay CZK 30–40 bn to the Czech state in extraordinary duties and taxes
In 2023, CEZ Group will pay CZK 30–40 bn to the Czech state in extraordinary duties and taxes CEZ Group's payments of extraordinary duties and Czech Rep.’s revenues from taxes in 2023* (CZK bn) Q1 2023 2023 E dividends, income taxes, and Levy on revenues above price caps 10 10 to 15 levy on revenues
Slide 28: Annexes
Annexes Selected events and economic results ▪ Selected Events in the Past Quarter ▪ Total operating results ▪ Operating revenues by segment and country ▪ EBITDA by segment and country ▪ Expected year-on-year change in EBITDA by segment ▪ Estimated taxes to the Czech state in 2023 Investments, devel
Slide 29: Investment in fixed assets (CAPEX) by segment
Investment in fixed assets (CAPEX) by segment CAPEX (CZK bn) Q1 2022 Q1 2023 GENERATION 1.3 3.0 Of which: Nuclear fuel procurement 0.3 1.2 MINING 0.3 0.4 DISTRIBUTION 2.7 3.1 SALES 0.3 0.3 Intragroup eliminations 0.0 -0.1 TOTAL CEZ GROUP 4.7 6.8 Main causes of year-on-year change: ▪ GENERATION: in p
Slide 30: Credit facilities and debt structure as of Mar 31, 2023
Credit facilities and debt structure as of Mar 31, 2023 Committed bank credit facilities Bond maturity profile (CZK bn) UNDRAWN 20 CZK 68.1 bn 15 EUR Available DRAWN credit 10 USD CZK 0.003 bn lines* 5 JPY 0 CZK 2023 2024 2025 2026 2027 2028 2030 2032 2038 2039 2042 2047 * Available committed bank c
Slide 31: Net debt decreased by CZK 73.8 bn
Net debt decreased by CZK 73.8 bn mainly due to a reduction in margin deposits on commodity exchanges Decrease in net debt 81.9 by CZK 73.8 bn 155.7 1.2 Net debt / Annual EBITDA 0.7 ▪ Interest, income taxes (CZK -1.4 bn): income taxes paid (CZK -1.3 bn), balance of interest paid and received (CZK -0
Slide 32: Currency and Commodity Hedging of Generation in the Czech Rep. in 2024–2026
Currency and Commodity Hedging of Generation in the Czech Rep. in 2024–2026, Status as of Mar 31, 2023 Currency Hedge of Expected EUR Cash Flow From Electricity Generation in the Czech Rep. 2024 2025 2026 Total currency hedge of EUR CF from generation* 62% 44% 10% Natural currency hedge (debt and in
Slide 33: Annexes
Annexes Selected events and economic results ▪ Selected Events in the Past Quarter ▪ Total operating results ▪ Operating revenues by segment and country ▪ EBITDA by segment and country ▪ Expected year-on-year change in EBITDA by segment ▪ Estimated taxes to the Czech state in 2023 Investments, devel
Slide 34: Market developments from January 1, 2022 to Mar 31, 2023
Market developments from January 1, 2022 to Mar 31, 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
Slide 35: Electricity balance (GWh)
Electricity balance (GWh) Index Q1 2022 Q1 2023 2023/2022 Electricity procured 13,419 12,770 -5% Generated in-house (gross) 14,893 14,089 -5% In-house and other consumption, including pumping in pumped-storage plants -1,474 -1,319 -10% Sold to end customers -6,368 -6,739 +6% Sold in the wholesale ma
Slide 36: Electricity balance (GWh) by segment
Electricity balance (GWh) by segment Q1 2023 Generation Distribution Sale Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 12,645 -5% 0 - 125 -7% 0 - 12,770 -5% Generated in-house (gross) 13,943 -5% 0 - 146 -6% 0 - 14,089 -5% In-house and other consumption, includi
Slide 37: Electricity balance (GWh) by country
Electricity balance (GWh) by country Q1 2023 Czechia Poland Germany Others Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 12,236 -4% 417 -23% 107 +21% 9 - 0 - 12,770 -5% Generated in-house (gross) 13,478 -5% 492 -22% 107 +21% 11 >200% 0 - 14,089 -5% In-ho
Slide 38: 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 39: Calculation of components of alternative 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