CEZ As · PSECZ:CEZ
CEZ As — H1 2022 Earnings Presentation
48 slides from CEZ As's earnings presentation, Aug 9, 2022
Slide 1: Report on CEZ Group Financial Results in H1 2022
REPORT ON CEZ GROUP FINANCIAL RESULTS IN H1 2022 NON-AUDITED CONSOLIDATED RESULTS PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) AUGUST 9, 2022
Slide 2: Financial Highlights and Selected Events
REPORT ON CEZ GROUP FINANCIAL RESULTS FOR H1 2022 Financial Highlights and Selected Events Generation & Mining Distribution and Sale 2 2
Slide 3: Highlights of Financial Results for H1 2022 and Outlook
HIGHLIGHTS OF FINANCIAL RESULTS FOR H1 2022 AND OUTLOOK FOR THE CEZ GROUP FOR THE FULL YEAR H1 2022 Financial Highlights Operating revenues increased by 21% year-on-year to CZK 130.5 bn. EBITDA increased by 88% year-on-year to CZK 59.3 bn. Net income reached CZK 33.6 bn. Net income adjusted
Slide 4: Main Causes of Year-on-Year Change in EBITDA
MAIN CAUSES OF YEAR-ON-YEAR CHANGE IN EBITDA CZK bn 70 +32.4 +32,4 +1.0 +1,0 -0.1 -0,1 -3.2 -3,2 59.3 60 50 Divested 40 31.6 assets* 30 2.5 59.3 20 EXISTING +30,2+30.2 CZK mld.bn Kč Existing 29.1 10 ASSETS +104 % +104% assets 0 H1/2021 GENERATION MINING DISTRIBUTION SALES H1/2022 Existing assets (CZ
Slide 5: Main Causes of Year-on-Year Change in Net Income
MAIN CAUSES OF YEAR-ON-YEAR CHANGE IN NET INCOME (CZK bn) H1/2021 H1/2022 Difference % EBITDA 31.6 59.3 +27.7 +88% Depreciation and amortization -13.9 -15.2 -1.3 -9% Impairments* -11.6 0.1 +11.7 - Other income (expenses) -1.9 -2.5 -0.7 -36% Interest income (expenses) -2.0 -0.8 +1.2 +62% Other 0.1 -1
Slide 6: We Increase the Financial Outlook for the Whole Year 2022
WE INCREASE THE FINANCIAL OUTLOOK FOR THE WHOLE YEAR 2022: EBITDA OF CZK 110–115 BN, ADJUSTED NET INCOME OF CZK 60–65 BN EBITDA (CZK bn) 110–115 Main reasons for adjusting the financial outlook 95–99 as compared to the outlook from May 10, 2022: Higher realization prices of electricity Higher in
Slide 7: Objectives and Measures of Czech Energy Policy
IN THE CONTEXT OF GEOPOLITICAL DEVELOPMENTS AND MEASURES ADOPTED BY THE EU, WE SEE THE FOLLOWING OBJECTIVES AND MEASURES OF THE CZECH ENERGY POLICY AIMED AT ENSURING AFFORDABLE AND SECURE SUPPLIES Increasing energy self-sufficiency and long-term affordability: STRATEGIC IMPERATIVES • Accelerating
Slide 8: Selected Measures Implemented by CEZ for Energy Independence and Vision 2030
SELECTED MEASURES IMPLEMENTED BY CEZ TO ENSURE ENERGY INDEPENDENCE AND TO MEET VISION 2030 Emission-free nuclear industry: preparing new facilities and ensuring safe efficient operation of existing ones We have launched a tender for a new nuclear power facility Dukovany II. We are accelerating t
Slide 9: Selected Events in the Past Quarter: Generation Segment
SELECTED EVENTS IN THE PAST QUARTER GENERATION SEGMENT Contracts for the supply of nuclear fuel assemblies concluded with Westinghouse and Framatome ČEZ has concluded contracts with Westinghouse and Framatome for the supply of fuel assemblies for the Temelín NPP. This is an important step towards
Slide 10: Securing Strategic Raw Materials – LNG
SELECTED EVENTS OF THE PAST QUARTER SECURING STRATEGIC RAW MATERIALS – LNG New LNG terminal capacity secured for Czechia, including transport routes from the Netherlands The Ministry of Industry and Trade of the Czech Republic together with ČEZ negotiated a capacity of three billion cubic meters o
Slide 11: Liquidity and Credit Risk Management
SELECTED EVENTS OF THE PAST QUARTER LIQUIDITY AND CREDIT RISK MANAGEMENT Development of margin deposits* (from Jan 1, 2022 to Aug 2, 2022) EUR/MWh Available liquidity (CZK bn) CZK bn The effect of as at Jun 30 at Jun 30 at Aug 2 120 optimizing positions 1,200 Margin deposits CZK 89 bn on European 10
Slide 12: ESG Area and Structure of ČEZ Activities According to EU Taxonomy
SELECTED EVENTS IN THE PAST QUARTER ESG AREA AND STRUCTURE OF ČEZ ACTIVITIES ACCORDING TO EU TAXONOMY Selected Events in ESG Structure of CEZ Group activities in 2021 according to EU taxonomy SBTi validated ČEZ's climate targets for 2030. They are in line with the well-below 2 °C scenario and the
Slide 13: Market Capitalization of ČEZ Increasing at Fastest Rate in Europe
FOR MORE THAN A YEAR THE MARKET CAPITALIZATION OF ČEZ HAS BEEN INCREASING AT THE FASTEST RATE OF ANY MAJOR ENERGY COMPANY IN EUROPE Total shareholder return* in 2021 Total shareholder return* in H1 2022 ČEZ 75% ČEZ 29% Uniper 55% RWE 0% Fortum 44% Iberdrola -3% Verbund 43% EDP -4% E.ON 41% Verbund -
Slide 14: 30 Years Since ČEZ Was Founded—Value Increased by 1540%
ON MAY 6, 2022, IT WAS 30 YEARS SINCE ČEZ WAS FOUNDED— THE VALUE OF THE COMPANY INCREASED BY 1540% Market capitalization as of June 30, 2022: CZK 571 bn (+1540%)* Assets: CZK 1,183 bn (+1117%) Total operating revenues: CZK 228 bn (+369%) Number of employees: 28,043 (+104%) Installed genera
Slide 15: In 30 Years Czechia Has Gained a Value of Over CZK 1 Trillion
IN THE 30 YEARS SINCE ČEZ WAS FOUNDED, CZECHIA HAS GAINED A VALUE OF OVER CZK 1 TRILLION From 1992 to 2021, Czechia has received CZK 771 bn in cash, of which: ● CZK 510 bn in taxes ● CZK 209 bn in dividends ● CZK 10 bn in donations ● CZK 42 bn for emission allowances CZK +771 bn The Company's value
Slide 16: Generation & Mining
REPORT ON CEZ GROUP FINANCIAL RESULTS FOR H1 2022 Financial Highlights and Selected Events Generation & Mining Distribution and Sale 16 16
Slide 17: Generation Segment EBITDA
GENERATION SEGMENT EBITDA EBITDA (CZK bn) H1/2021* H1/2022 Difference % Q2/2021* Q2/2022 Difference % Zero-emission Generating Facilities 13.4 28.3 +14.9 +108% 6.1 12.8 +6.7 +112% of which: nuclear 10.8 22.2 +11.4 +101% 4.5 9.8 +5.3 +115% of which: renewables 2.5 6.1 +3.6 +141% 1.5 3.0 +1.5 +103% Fo
Slide 18: Mining Segment EBITDA
MINING SEGMENT EBITDA EBITDA (CZK bn) H1/2021 H1/2022 Difference % Q2/2021 Q2/2022 Difference % Czechia 2.1 3.1 +1.0 +47% 0.6 1.2 +0.6 +106% Year-on-year effects in H1: Year-on-year effects in Q2: Higher revenues due to the increase in the price of deliveries to CEZ Group (CZK Higher revenues fr
Slide 19: Generation from Renewable and Nuclear Sources (TWh)
GENERATION FROM RENEWABLE AND NUCLEAR SOURCES (TWH) +1% -1% 16.7 16.8 34.5 34.2 1.9 1.9 1.6 1.6 3.8 3.4 -16% -10% Renewables +3% 15.2 30.7 +0% 30.8 14.8 Nuclear Facilities H1 2021* 1-6/2021* H1 2022 1-6/2022 2021* 2022 E Renewables (-16%) hydro, wind, solar, biomass, biogas Renewables (-10%) Czechia
Slide 20: Electricity Generation from Coal and Natural Gas (TWh)
ELECTRICITY GENERATION FROM COAL AND NATURAL GAS (TWH) 10.7 -6% 10.0 21.1 19.8* 3.2 1.3* 2.0 1.2 * The expected generation from 1.8 +3% 1.9 0.9 -42% 0.9 Generation natural gas in 2022 does not from natural gas include the expected generation from the CCGT for 0% the period from August 1 to Generatio
Slide 21: Emissions of CO2, SO2, and NOx in Electricity and Heat Generation
EMISSIONS OF CO2, SO2, AND NOX IN ELECTRICITY AND HEAT GENERATION CO2e emission intensity of electricity and heat generation (t CO2e/MWh) CEZ Group’s emission intensity for 0.70 0.70 Marginal plant electricity and heat generation in 0.60 0.60 in Germany H1 2022 of 0.28 t CO2e/MWh 0.50 0.50 -3% +4% c
Slide 22: Operational and Price Assumptions for Generation in Czechia
SELECTED OPERATIONAL AND PRICE ASSUMPTIONS FOR GENERATION IN CZECHIA* COMMODITY RISK HEDGING GROSS MARGINS ON GENERATION Electricity—share of hedged Emission allowances— deliveries from generation in status of generation Natural gas—generation cost Czechia* for 2022 hedging in Czechia* 2022 hedging
Slide 23: Hedging the Market Risks of Generation in Czechia for 2023–2025
HEDGING THE MARKET RISKS OF GENERATION IN CZECHIA FOR 2023–2025 Electricity sold in TWh (as of Jun 30) Contracted emission allowances* in m tons (as of Jun Hedged volume from Apr 1, 2022 to Jun 30, 2022 30) Hedged volume from Apr 1, 2022 to Jun 30, 2022 Hedged volume as of Mar 31, 2022 Hedged volume
Slide 24: Distribution and Sale
REPORT ON CEZ GROUP FINANCIAL RESULTS FOR H1 2022 Financial Highlights and Selected Events Generation & Mining Distribution and Sale 24 24
Slide 25: Distribution Segment EBITDA
DISTRIBUTION SEGMENT EBITDA* EBITDA (CZK bn) H1/2021 H1/2022 Difference % Q2/2021 Q2/2022 Difference % Czechia 9.6 9.5 -0.1 -1% 4.4 4.4 +0.0 +0% Year-on-year effects in H1 (CZK -0.1 bn): Year-on-year effects in Q2: higher fixed operating expenses due to an increase in lower gross margin mainly d
Slide 26: Consumption of Electricity in the Distribution Area of ČEZ Distribuce
CONSUMPTION OF ELECTRICITY IN THE DISTRIBUTION AREA OF ČEZ DISTRIBUCE DECREASED MAINLY IN THE RESIDENTIAL CUSTOMERS SEGMENT Electricity distribution Temperature- and calendar-adjusted (TWh) electricity consumption (TWh) -4% 19.0 18.2 -2% 2.5 +1% 2.5 Retail customers 6.1 (businesses) -11% 5.4 Residen
Slide 27: Sales Segment EBITDA
SALES* SEGMENT EBITDA EBITDA (CZK bn) H1/2021 H1/2022 Difference % Q2/2021 Q2/2022 Difference % Retail segment–ČEZ Prodej 2.5 0.3 -2.2 -87% 1.1 0.5 -0.6 -56% B2B segment—of which ESCO companies: 0.9 0.0 -0.9 -103% 0.3 0.3 -0.0 -10% Energy Services—Czechia and Slovakia 0.4 0.2 -0.1 -39% 0.1 0.1 -0.0
Slide 28: Volume of Electricity and Gas Sold and Number of Customers
VOLUME OF ELECTRICITY AND GAS SOLD AND THE NUMBER OF CUSTOMERS CZECHIA—RETAIL A significant impact on the end-use customer Total electricity and gas supply The number of customers market in Czechia was the collapse of several increased by 13% year-on-year increased by 14% year-on-year suppliers du
Slide 29: Revenues from Energy Services
REVENUES FROM ENERGY SERVICES Revenues year-on-year Revenues outlook (CZK bn) (CZK bn) 32.1 14.2 Germany +30% +29% (Elevion Group) 24.8 11.2 16.3 7.4 +15% +8% Czechia and 14.2 6.9 Slovakia (ČEZ ESCO group) +52% 4.7 +47% 10.4 3.1 Other countries* 7.1 1.2 +86% 2.3 (Elevion Group) 3.5 +55% 5.4 1-6/2021
Slide 30: Annexes
ANNEXES Outcomes of the annual Shareholders' Meeting of ČEZ Financial Results Total financial results Total operating results Operating results by existing and divested assets Operating revenues by segment and country EBITDA by segment and country Net income for Q2 Expected year-on-yea
Slide 31: Annual Shareholders' Meeting of ČEZ, June 28–29, 2022
ON JUNE 28–29, 2022, THE ANNUAL SHAREHOLDERS' MEETING OF ČEZ, A. S., WAS HELD, WHICH, WITHIN THE FRAMEWORK OF THE APPROVED AGENDA: • The reports of the company's bodies were presented • Approved the financial statements of ČEZ, a. s., and the consolidated financial statements of CEZ Group for 2021 •
Slide 32: Total Financial Results
TOTAL FINANCIAL RESULTS (CZK bn) H1/2021 H1/2022 Difference % Operating Revenues 108.2 130.5 +22.3 +21% EBITDA 31.6 59.3 +27.7 +88% of which: Existing assets* 29.1 59.3 +30.2 +104% EBIT 6.1 44.2 +38.1 >200% Net income 1.6 33.6 +32.0 >200% Adjusted net income** 11.3 33.6 +22.4 +198% Operating cash fl
Slide 33: Total Operating Results
TOTAL OPERATING RESULTS H1/2021 H1/2021* H1/2022 Difference* %* Electricity generation TWh 27.7 27.3 26.8 -0.5 -2% Electricity distributed to end-use customers TWh 26.0 19.2 18.3 -0.9 -5% Sales of electricity to end customers TWh 16.9 10.5 11.7 +1.2 +12% Sales of gas to end customers TWh 4.3 3.9 4.8
Slide 34: Operating Results by Existing and Divested Assets
OPERATING RESULTS BY EXISTING AND DIVESTED ASSETS Electricity generation (TWh) H1/2021 H1/2022 Difference % Gas sales to end-use customers Existing assets** 27.3 26.8 -0.5 -2% (TWh) H1/2021 H1/2022 Difference % of which: Czechia** 26.1 25.6 -0.5 -2% Existing assets 3.9 4.8 +0.9 +24% Poland 1.1 1.1 -
Slide 35: Operating Revenues by Segment and Country
OPERATING REVENUES BY SEGMENT AND COUNTRY GENERATION (CZK bn) H1/2021 H1/2022 Diff % SALES (CZK bn) H1/2021 H1/2022 Diff % Czechia 52.5 91.2 +38.7 +74% Czechia 31.1 56.1 +25.0 +80% Germany 0.3 0.4 +0.1 +24% Germany 7.0 7.6 +0.7 +9% Poland 3.0 3.0 +0.0 +0% Romania 2.4 0.2 -2.2 -93% Romania 1.2 -0.0 -
Slide 36: EBITDA by Segment and Country
EBITDA BY SEGMENT AND COUNTRY GENERATION (CZK bn) H1/2021 H1/2022 Difference % DISTRIBUTION (CZK bn) H1/2021 H1/2022 Difference % Czechia 13.1 45.8 +32.7 >200% Czechia 9.6 9.5 -0.1 -1% Germany 0.2 0.3 +0.1 +34% Romania 0.5 - -0.5 - Poland 0.3 -0.1 -0.4 - Bulgaria 1.0 - -1.0 - Romania 0.6 -0.0 -0.6 -
Slide 37: Net Income for Q2
NET INCOME FOR Q2 (CZK bn) Q2/2021 Q2/2022 Difference % EBITDA 11.7 15.6 +3.9 +34% Depreciation and amortization -7.2 -7.6 -0.4 -5% Impairments* -9.5 0.1 +9.6 - Other income (expenses) -1.1 0.2 +1.3 - Interest income (expenses) -1.0 -0.2 +0.8 +78% Other -0.1 0.5 +0.5 - Net Income Adjustments Income
Slide 38: Expected Year-on-Year Change in EBITDA by Business Segment
EXPECTED YEAR-ON-YEAR CHANGE IN EBITDA BY BUSINESS SEGMENT GENERATION (CZK bn) Nuclear Facilities •+ Higher realization prices of electricity incl. hedging EBITDA S 2021* 2021 60.6 Renewables •+ Higher realization prices of electricity incl. hedging Nuclear Facilities 0.0 +24 to +29 Emission Sources
Slide 39: Investments in Fixed Assets (CAPEX)
INVESTMENTS IN FIXED ASSETS (CAPEX) CAPEX (CZK bn) by segment H1/2021 H1/2022 GENERATION 3.6 3.8 Of which: Nuclear fuel procurement 1.2 0.8 MINING 0.8 0.7 DISTRIBUTION 5.7 6.6 SALES 0.6 0.9 Total existing assets 10.6 12.1 Divested assets 1.1 - TOTAL CEZ GROUP 11.7 12.1 The main reasons for the year-
Slide 40: Credit Lines and Debt Structure
CREDIT LINES AND DEBT STRUCTURE Utilization of Short-Term Lines and Available Committed Credit Facilities (as of Jun 30, 2022) Bond maturity profile (as of Jun 30, 2022) CZK bn UNDRAWN 25 committed DRAWN 20 CZK 45.9 bn committed Available CZK 1.6 bn 15 credit facilities DRAWN 10 uncommitted 5 CZK 0.
Slide 41: Net Debt Decreased by CZK 26 bn in H1
NET DEBT DECREASED BY CZK 26 BN IN H1 Net debt as of Other Acquisition Net debt December 31, Interest, operating of fixed Acquisitions as of June 30, 2021 EBITDA income tax effects assets /divestments Other 2022 Decrease in net debt by CZK 26 bn +59.3 -2.9 -14.7 84.8 110.8 -14.6 -2.0 +0.9 1.8 Net de
Slide 42: Currency and Commodity Hedging of Electricity Generation in Czechia in 2023–2025
CURRENCY AND COMMODITY HEDGING OF ELECTRICITY GENERATION IN CZECHIA IN 2023–2025 Currency Hedge of Expected EUR Cash Flow* From Electricity Generation in Czechia (as of Jun 30, 2022) 2023 2024 2025 Total currency hedge of EUR denominated CF from generation 57% 31% 21% Natural currency hedge (debt an
Slide 43: Market Developments from Jan 1, 2021 to Jun 30, 2022
MARKET DEVELOPMENTS FROM JAN 1, 2021 TO JUN 30, 2022 CO2 emissions allowances CZK ČEZ shares EUR/t (to be delivered in 12/2023) 1,300 110 1,100 90 900 70 700 50 500 30 300 10 Electricity EUR/MWh (BL to be delivered in 2023 and 2024) USD / t Coal and gas EUR/MWh 500 500 400 400 250 300 300 200 200 14
Slide 44: Electricity Balance (GWh)
Electricity balance (GWh) Index Q1 - Q2 2021 Q1 - Q2 2022 2022/2021 Electricity procured 25,020 24,170 -3% Generated in-house (gross) 27,732 26,793 -3% In-house and other consumption, including pumping in pumped-storage plants -2,712 -2,623 -3% Sold to end customers -16,921 -11,670 -31% Sold in the
Slide 45: Electricity Balance (GWh) by Segment
Electricity balance (GWh) by segment Q1 - Q2 2022 Generation Distribution Sale Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 23,981 -3% 0 - 190 +7% 0 - 24,170 -3% Generated in-house (gross) 26,563 -3% 0 - 230 +8% 0 - 26,793 -3% In-house and other consumption, in
Slide 46: Electricity Balance (GWh) by Country
Electricity balance (GWh) by country Q1 - Q2 2022 Czechia Poland Romania Bulgaria Germany Others Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 23,099 -2% 920 -3% 0 - 0 - 141 +20% 10 +87% 0 - 24,170 -3% Generated in-house (gross) 25,566 -2
Slide 47: 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 48: 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