CEZ As · PSECZ:CEZ
CEZ As — Q1 2022 Earnings Presentation
41 slides from CEZ As's earnings presentation, May 10, 2022
Slide 1: Presentation on CEZ Group Financial Results in Q1 2022
PRESENTATION ON CEZ GROUP FINANCIAL RESULTS IN Q1 2022 NON-AUDITED CONSOLIDATED RESULTS PREPARED IN ACCORDANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) MAY 10, 2022
Slide 2: Report on CEZ Group Financial Results for Q1 2022
REPORT ON CEZ GROUP FINANCIAL RESULTS FOR Q1 2022 Financial Highlights and Selected Events Generation & Mining Distribution and Sale 2 2
Slide 3: Highlights of Financial Results for Q1 and Outlook for 2022
HIGHLIGHTS OF FINANCIAL RESULTS FOR Q1 AND OUTLOOK FOR CEZ GROUP FOR THE FULL YEAR 2022 Q1 2022 Financial highlights Operating revenues increased by 29% year-on-year to CZK 76.0 bn. EBITDA increased by 119% year-on-year to CZK 43.7 bn. Net income reached CZK 26.7 bn. Net income adjusted for
Slide 4: Main Causes of Year-on-Year Change in EBITDA
MAIN CAUSES OF YEAR-ON-YEAR CHANGE IN EBITDA CZK bn 50 +28.0 +0.4 -0.1 -2.4 43.7 45 40 35 30 Divested 25 19.9 assets* 20 43.7 15 2.1 EXISTING CZK 25.8 bn Existing 10 17.9 ASSETS +144% assets 5 0 Q1 2021 GENERATION MINING DISTRIBUTION SALES Q1 2022 Existing assets (CZK +25.8 bn): GENERATION Segment (
Slide 5: Increased Earnings Reflect Rising Market Electricity Prices
ČEZ'S INCREASED EARNINGS REFLECT RISING MARKET ELECTRICITY PRICES, HIGH OPERATIONAL AVAILABILITY OF GENERATING FACILITIES AND RECORD PROFIT FROM COMMODITY TRADING IN Q1 Development of spot electricity and gas prices Electricity and gas prices with delivery in Q3 2022 PXE spot electricity, TTF spot g
Slide 6: Main Causes of Year-on-Year Change in Net Income
MAIN CAUSES OF YEAR-ON-YEAR CHANGE IN NET INCOME (CZK bn) Q1 2021 Q1 2022 Difference % EBITDA 19.9 43.7 +23.8 +119% Depreciation and amortization -6.7 -7.5 -0.9 -13% Impairments* -2.0 0.1 +2.1 - Other income (expenses) -0.8 -2.8 -2.0 >200% Interest income (expenses) -1.0 -0.5 +0.5 +47% Other 0.2 -2.
Slide 7: We Increase the Financial Outlook for 2022
WE INCREASE THE FINANCIAL OUTLOOK FOR 2022: EBITDA OF CZK 95–99 BN, ADJUSTED NET INCOME OF CZK 45–49 BN EBITDA (CZK bn) 95–99 Main reasons for adjusting the financial outlook 85–89 as compared to the outlook from Mar 15, 2022: Significantly higher realization prices of electricity Higher profit
Slide 8: Selected Events in Q1 2022
SELECTED EVENTS IN Q1 2022 Czechia allocates first investment support for new renewables from the Modernization Fund in the amount of CZK 3.5 bn On March 15, 2022, a decision was issued on the provision of financial resources from the State Environmental Fund of the Czech Republic for photovoltaic
Slide 9: Tender for Constructing the New Nuclear Power Plant in Dukovany Launched
TENDER FOR THE CONTRACTOR FOR CONSTRUCTING THE NEW NUCLEAR POWER PLANT IN DUKOVANY WAS LAUNCHED On March 17, Elektrárna Dukovany II launched a tender for the construction contractor Qualified bidders include the American company Westinghouse, the French company EdF, and the Korean company KHNP.
Slide 10: Report on CEZ Group Financial Results for Q1 2022
REPORT ON CEZ GROUP FINANCIAL RESULTS FOR Q1 2022 Financial Highlights and Selected Events Generation & Mining Distribution and Sale 10 10
Slide 11: Generation Segment EBITDA
GENERATION SEGMENT EBITDA EBITDA (CZK bn) Q1 2021* Q1 2022 Diff % Zero-emission Generating Facilities 7.6 15.6 +8.1 +107% The division of EBITDA of the GENERATION segment into five sub-segments is only of which: nuclear 6.4 12.4 +6.0 +93% indicative on the basis of central allocation of which: renew
Slide 12: Mining Segment EBITDA
MINING SEGMENT EBITDA EBITDA (CZK bn) Q1 2021 Q1 2022 Difference % Czechia 1.5 1.9 +0.4 +25% Year-on-year effects: Czechia (CZK +0.4 bn) Higher revenues due to the increase in the price of deliveries to CEZ Group (CZK +0.3 bn) Higher sales related to higher deliveries to external customers (CZK
Slide 13: Generation from Renewable and Nuclear Sources (TWh)
GENERATION FROM RENEWABLE AND NUCLEAR SOURCES (TWH) +1% -1% 8.9 8.9 34.5 34.2 1.1 -17% 0.9 3.8 3.5 -8% Renewables +3% 8.1 Temelín Nuclear Power Plant 7.8 30.7 0% 30.7 generation in January reached Nuclear facilities the highest monthly generation in history Generation record helped by: 1-3/2021 Q1 2
Slide 14: Electricity Generation from Coal and Natural Gas (TWh)
ELECTRICITY GENERATION FROM COAL AND NATURAL GAS (TWH) +5% 6.6 -10% 21.1 22.1* 6.0 1.2 3.2* 0.7 3.2 0% 0.6 -40% 0.6 1.9 Generation 1.8 from natural gas +5% -1% Generation from 4.8 4.7 coal in Poland 16.1 17.0 +6% -3% Generation from coal in Czechia Q1 2021 1-3/2021 Q1 2022 1-3/2022 2021 2022 E Natur
Slide 15: 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) 0.70 Marginal plant 0.60 in Germany CEZ Group’s emission intensity 0.50 for electricity generation in Q1 +5% +5% 2022 of 0.31 t CO2e/MWh 0.40 New CCGT 0.30 corres
Slide 16: Operational and Price Assumptions; Commodity Risk Hedging of Gross Margins
SELECTED OPERATIONAL AND PRICE ASSUMPTIONS FOR GENERATION IN CZECHIA* COMMODITY RISK HEDGING OF GROSS MARGINS ON GENERATION Electricity—share of hedged deliveries from generation in Czechia* for 2022 Emission Allowances Natural Gas*** Sold Volume Open Revenues EUA Purchased Purchased (TWh) (TWh) pos
Slide 17: 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 March 31) Contracted emission allowances* in million tons (as of March 31) Hedged volume from Jan 1, 2022, to Mar 31, 2022 Hedged volume from Jan 1, 2022, to Mar 31, 2022 Hedged volume as of Dec 31, 2021 H
Slide 18: Report on CEZ Group Financial Results for Q1 2022
REPORT ON CEZ GROUP FINANCIAL RESULTS FOR Q1 2022 Financial Highlights and Selected Events Generation & Mining Distribution and Sale 18 18
Slide 19: Distribution Segment EBITDA
DISTRIBUTION SEGMENT EBITDA* EBITDA (CZK bn) Q1 2021 Q1 2022 Difference % Czechia 5.2 5.2 -0.1 -1% Year-on-year effects (CZK -0.1 bn): Lower revenue from activities to ensure input power and connection (CZK -0.1 bn) The decrease in gross margin on electricity distribution due to lower volume dis
Slide 20: Electricity Consumption in the ČEZ Distribuce Area Decreased
ELECTRICITY CONSUMPTION IN THE DISTRIBUTION AREA OF ČEZ DISTRIBUCE DECREASED Electricity distribution Temperature- and calendar-adjusted (TWh) electricity consumption (TWh) 10.3 -4% 9.9 -1% 1.4 -5% 1.3 Retail customers (businesses) 3.6 -9% 3.3 Residential customers 10.4 10.2 5.3 -1% 5.3 Large custom
Slide 21: Sales Segment EBITDA
SALES SEGMENT EBITDA EBITDA (CZK bn) Q1 2021* Q1 2022 Difference % Retail segment–ČEZ Prodej 1.4 -0.2 -1.6 - B2B segment—of which ESCO companies: 0.6 -0.3 -0.9 - Energy Services—Czechia and Slovakia 0.3 0.2 -0.1 -41% Energy Services—Germany and other countries** 0.2 0.2 +0.1 +33% Commodity Sales—Cze
Slide 22: Volume of Electricity and Gas Sold; Number of Customers Czechia—Retail
VOLUME OF ELECTRICITY AND GAS SOLD; THE NUMBER OF CUSTOMERS CZECHIA—RETAIL Total electricity and natural gas The number of customers supply increased by 15% year-on-year increased by 14% year-on-year (TWh) (service points in thousands) A significant impact on the end-customer market in Czechia was
Slide 23: Selected Events in Q1 of the Retail Sector in Czechia—ČEZ Prodej
SELECTED EVENTS IN Q1 OF THE RETAIL SECTOR IN CZECHIA—ČEZ PRODEJ ČEZ Prodej remains—despite the uncertainty related to future commodity supplies to Czechia—one of the few retail companies in Czechia that has not yet limited the breadth of its offer to new customers and offers them a full spectrum of
Slide 24: Sales of Energy Services
SALES OF ENERGY SERVICES Revenues year-on-year Revenues outlook (CZK bn) (CZK bn) 32.1 7.2 +30% +33% Germany 24.8 (Elevion group) 16.3 5.4 3.6 +15% +8% 14.2 Czechia and 3.4 Slovakia +56% (ČEZ ESCO group) 10.4 2.4 +47% 7.1 1.5 1.1 Other countries* 5.4 0.5 +134% 3.5 +55% (Elevion group) 1-3/2021 Q1 20
Slide 25: Annexes
ANNEXES Financial Results Total financial results Total operating results Operating revenues by segment and country EBITDA by segment and country Operating results by country Expected year-on-year change in EBITDA by segment Investments, development of cash flow, debt, and financial expo
Slide 26: Total Financial Results
TOTAL FINANCIAL RESULTS (CZK bn) Q1 2021 Q1 2022 Difference % Operating revenues 59.1 76.0 +16.9 +29% EBITDA 19.9 43.7 +23.8 +119% of which: Existing assets* 17.9 43.7 +25.8 +144% EBIT 11.2 36.2 +25.0 >200% Net income 8.4 26.7 +18.3 >200% Adjusted net income** 8.4 26.7 +18.3 >200% Operating cash flo
Slide 27: Total Operating Results
TOTAL OPERATING RESULTS Q1 2021 Q1 2021* Q1 2022 Diff* %* Electricity generation TWh 15.9 15.5 14.9 -0.6 -4% Electricity distributed to end-use customers TWh 14.9 10.3 9.9 -0.4 -4% Sales of electricity to end customers TWh 9.8 5.8 6.4 +0.6 +11% Sales of gas to end customers TWh 3.1 2.7 3.4 +0.7 +26%
Slide 28: Operating Revenues by Segment and Country
OPERATING REVENUES BY SEGMENT AND COUNTRY GENERATION (CZK bn) Q1 2021 Q1 2022 Difference % SALES (CZK bn) Q1 2021 Q1 2022 Difference % Czechia 29.0 57.1 +28.0 +97% Czechia 15.7 30.7 +15.0 +96% Germany 0.2 0.3 +0.1 +68% Germany 3.4 3.7 +0.3 +8% Poland 1.7 1.8 +0.1 +4% Romania 2.3 0.1 -2.2 -98% Romani
Slide 29: EBITDA by Segment and Country
EBITDA BY SEGMENT AND COUNTRY GENERATION (CZK bn) Q1 2021 Q1 2022 Difference % DISTRIBUTION (CZK bn) Q1 2021 Q1 2022 Difference % Czechia 8.5 36.4 +28.0 >200% Czechia 5.2 5.2 -0.1 -1% Germany 0.1 0.2 +0.1 +95% Romania 0.5 0.0 -0.5 - Poland 0.3 0.1 -0.2 -65% Bulgaria 0.6 0.0 -0.6 - Romania 0.6 0.0 -0
Slide 30: Operating Results by Country
OPERATING RESULTS BY COUNTRY Gas sales to end-use Electricity generation (TWh) Q1 2021 Q1 2022 Difference % customers (TWh) Q1 2021 Q1 2022 Difference % Existing assets** 15.5 14.9 -0.6 -4% Existing assets 2.7 3.4 +0.7 +26% of which: Czechia** 14.7 14.2 -0.6 -4% of which: Czechia 2.5 3.4 +0.9 +36% G
Slide 31: 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 2021* S 2021 60.6 60.6 Renewables •+ Higher realization prices of electricity incl. hedging Nuclear Facilities 0.0 +19 to +24 Fossil Fuel
Slide 32: Investments in Fixed Assets (CAPEX)
INVESTMENTS IN FIXED ASSETS (CAPEX) CAPEX (CZK bn) Q1 2021 Q1 2022 GENERATION Segment 1.4 1.3 Of which: Nuclear fuel procurement 0.5 0.3 MINING Segment 0.3 0.3 DISTRIBUTION Segment 2.2 2.7 SALES Segment 0.2 0.3 Total existing assets 4.1 4.7 Divested Assets 0.7 0.0 TOTAL CEZ GROUP 4.8 4.7 The main re
Slide 33: Credit Facilities and Debt Structure
CREDIT FACILITITES AND DEBT STRUCTURE Utilization of Short-Term Lines and Available Committed Credit Facilities (as of Mar 31, 2022) Bond Maturity Profile (as of Mar 31, 2022) CZK bn Issue of USD 266 25 On April 6, 2022, EUR 600 UNDRAWN million duly repaid million, Sustainability-Linked committed Ap
Slide 34: Net Debt Decreased by CZK 29 bn in Q1
NET DEBT DECREASED BY CZK 29 BN IN Q1 Net debt as of December Interest, Other Acquisition of Divestments/ Net debt as of 31, 2021 EBITDA income tax operating effects fixed assets acquisitions Other March 31, 2022 Decrease in net debt by CZK 29.0 bn 81.8 110.7 +43.7 -1.0 -9.2 -6.6 -0.1 +2.2 1.8 Net d
Slide 35: Currency and Commodity Hedging of Electricity Generation in Czechia 2023–2025
CURRENCY AND COMMODITY HEDGING OF ELECTRICITY GENERATION IN CZECHIA IN 2023–2025 Currency Hedges for Estimated EUR cash flow* from Electricity Generation in Czechia (as of March 31, 2022) 2023 2024 2025 Total currency hedges of EUR denominated CF from generation 56% 40% 27% Natural currency hedging
Slide 36: Market Developments from Jan 1, 2021, to Mar 31, 2022
MARKET DEVELOPMENTS FROM JAN 1, 2021, TO MAR 31, 2022 CO2 emissions allowances CZK ČEZ shares EUR/t (to be delivered in 12/2023) 1100 110 900 90 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 500 500 250 400 400 300 300 140 200 200 100 10
Slide 37: Electricity Balance (GWh)
Electricity balance (GWh) Index Q1 2021 Q1 2022 2022/2021 Electricity procured 14,320 13,419 -6% Generated in-house (gross) 15,857 14,893 -6% In-house and other consumption, including pumping in pumped-storage plants -1,538 -1,474 -4% Sold to end customers -9,842 -6,368 -35% Sold in the wholesale ma
Slide 38: Electricity Balance (GWh) by Segment
Electricity balance (GWh) by segment Q1 2022 Generation Distribution Sale Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 13,294 -6% 0 - 125 +8% 0 - 13,419 -6% Generated in-house (gross) 14,747 -6% 0 - 146 +10% 0 - 14,893 -6% In-house and other consumption, includ
Slide 39: Electricity Balance (GWh) by Country
Electricity balance (GWh) by country Q1 2022 Czechia Poland Romania Bulgaria Germany Others Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 12,787 -4% 543 -5% 0 - 0 - 89 +33% 0 - 0 - 13,419 -6% Generated in-house (gross) 14,169 -4% 634 -5%
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 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