Cez As · PSECZ:CEZ
Cez As — Q1 2021 Earnings Presentation
39 slides from Cez As's earnings presentation, May 11, 2021
Slide 1: Presentation on CEZ Group Financial Results in Q1 2021
PRESENTATION ON CEZ GROUP FINANCIAL RESULTS IN Q1 2021 Nonaudited consolidated results prepared in accordance with International Financial Reporting Standards (IFRS) May 11, 2021 CEZ GROUP
Slide 2: Contents
CONTENTS Financial Highlights and Selected Events Financial Performance of Business Segments Annual Outlook 1 CEZ GROUP
Slide 3: CEZ Group Financial and Operating Results
CEZ GROUP FINANCIAL AND OPERATING RESULTS (CZK bn) Q1 2020 Q1 2021 Change % Revenues 57.0 59.1 +2.0 +4% EBITDA 25.9 19.9 -5.9 -23% EBIT 18.8 11.2 -7.6 -40% Net income 14.2 8.4 -5.8 -41% Net income adjusted * 13.9 8.4 -5.5 -40% Operating CF 13.2 5.6 -7.6 -58% CAPEX 4.4 4.8 +0.4 +10% Q1 2020 Q1 2021 C
Slide 4: Year-on-year change in EBITDA influenced by specific temporary effects of CZK 3.8 bn
YEAR-ON-YEAR CHANGE IN EBITDA INFLUENCED BY SPECIFIC TEMPORARY EFFECTS OF CZK 3.8 BN Assets for Sale Strategic Assets Main causes of year-on-year change in EBITDA Strategic assets—CEZ Group excl. assets for sale (CZK -5.7 bn) ▪ SALES and DISTRIBUTION customer segments: higher gross margin from elect
Slide 5: Other Income (Expenses)
OTHER INCOME (EXPENSES) (CZK bn) Q1 2020 Q1 2021 Change % EBITDA 25.9 19.9 -5.9 -23% Depreciation, amortization and impairments* -7.1 -8.7 -1.6 -23% Other income (expenses) -1.6 -0.8 +0.8 +49% Interest income (expenses) -1.2 -1.0 +0.2 +17% Interest on nuclear and other provisions -0.5 -0.5 -0.0 -3%
Slide 6: CEZ Group emission intensity in generating electricity is constantly decreasing
THE CEZ GROUP EMISSION INTENSITY IN GENERATING ELECTRICITY IS CONSTANTLY DECREASING; WE EXPECT A YEAR-ON-YEAR DECREASE OF 15% FOR THE ENTIRE YEAR OF 2021 CEZ Group’s Emission Intensity per Electricity Generated (t CO2/MWhe) t CO2/MWh ▪ For the entire year of 2021, we 0.60 Current expect a decline of
Slide 7: The sale of Romanian assets has been completed
THE SALE OF ROMANIAN ASSETS HAS BEEN COMPLETED. THE FUNDS RAISED WILL REDUCE FINANCIAL DEBT, ENABLE DEVELOPMENT INVESTMENT AND A HIGHER DIVIDEND The Shares of Romanian Companies were Handed Over to the Buyer Against Payment of the Purchase Price as at Mar 31, 2021 ▪ Following the fulfillment of all
Slide 8: Sales process development in other countries and selected events in Bulgaria
SALES PROCESS DEVELOPMENT IN OTHER COUNTRIES AND SELECTED EVENTS IN BULGARIA Bulgaria—Sales Process Development, Agreement on the Dividend Payment of EUR 25 million and Arbitration ▪ Due to the time that has elapsed since concluding the purchase agreement with Eurohold, the banks financing Eurohold
Slide 9: Selected Events in the Past Quarter
SELECTED EVENTS IN THE PAST QUARTER Date of the General Meeting and date of discussion of the dividend proposal are set ▪ The regular General Meeting of ČEZ, a. s. will take place on June 28th, 2021. ▪ The Board of Directors of ČEZ, a. s. will discuss the dividend proposal at its meeting on May 20th
Slide 10: COVID-19: ČEZ maintains strict measures in force
COVID-19: ČEZ MAINTAINS STRICT MEASURES IN FORCE, AND THUS GUARANTEES THE PROVISION OF SECURE AND STABLE ELECTRICITY SUPPLIES IN CZECHIA AND ABROAD, AND CONTINUES TO HELP OTHERS WE PROTECT OPERATIONS AND PERSONNEL ▪ We were one of the first in Czechia to introduce personnel self-testing; we currentl
Slide 11: Contents
CONTENTS Financial Highlights and Selected Events Financial Performance of Business Segments Annual Outlook 10 CEZ GROUP
Slide 12: EBITDA of Segment: Sales
EBITDA OF SEGMENT: SALES (CZK bn) Q1 2020 Q1 2021 Change % Czechia 1.3 1.8 +0.5 +36% Germany 0.1 0.2 +0.1 +55% Romania 0.2 0.1 -0.2 -73% Bulgaria 0.2 0.2 +0.0 +19% Other states 0.0 0.1 +0.0 +189% Total 1.9 2.3 +0.4 +23% thereof Strategic Assets 1.5 2.1 +0.6 +38% thereof Assets for Sale* 0.4 0.3 -0.1
Slide 13: Sales Segment—Retail: Amounts of Electricity and Gas Sold in Czechia
SALES SEGMENT—RETAIL AMOUNTS OF ELECTRICITY AND GAS SOLD IN CZECHIA ▪ Electricity and gas supplies ČEZ Prodej’s supply of electricity Number of ČEZ Prodej customers increased mainly due to a colder and natural gas increased year-on- is stable year-on-year winter in 2021. year by a total of 14% (serv
Slide 14: ESCO Services Sales in Q1 increased year-on-year by +2%
ESCO SERVICES SALES IN Q1 INCREASED YEAR-ON-YEAR BY +2%, WE EXPECT 8% INCREASE FOR THE FULL YEAR CZK bn CZK bn Germany (+9%) Germany (+4%) + organic increase + organic increase Czechia & Slovakia (-5%) Czechia & Slovakia (+10%) - negative impact of COVID-19 on Q1 2021 (the year 2020 was affected onl
Slide 15: EBITDA of Segment: Distribution
EBITDA OF SEGMENT: DISTRIBUTION (CZK bn) Q1 2020 Q1 2021 Change % Czechia 4.8 5.2 +0.4 +9% Romania 0.4 0.5 +0.1 +31% Bulgaria 0.6 0.6 +0.0 +2% Total 5.8 6.4 +0.5 +9% thereof Strategic Assets 4.8 5.2 +0.4 +9% thereof Assets for Sale* 1.0 1.1 +0.1 +14% Czechia (CZK +0.4 bn) ▪ Higher gross margin on el
Slide 16: Electricity Consumption in the Distribution Area of ČEZ Distribuce Increased
ELECTRICITY CONSUMPTION IN THE DISTRIBUTION AREA OF ČEZ DISTRIBUCE INCREASED Electricity Distribution Temperature- and Calendar-Adjusted Consumption TWh TWh +1.9% 10.2 10.4 Q1 2020 Q1 2021 The volume of electricity distributed corresponds to the total The recalculated consumption is based on the ele
Slide 17: EBITDA of Segment: Generation
EBITDA OF SEGMENT: GENERATION (CZK bn) Q1 2020 Q1 2021 Change % Czechia 15.4 8.7 -6.7 -43% Assets for Sale*: Germany 0.2 0.1 -0.1 -52% Poland (CZK -0.1 bn) Poland 0.3 0.3 -0.1 -22% ▪ Lower generation margins, mainly due to Romania 0.8 0.6 -0.2 -24% increasing prices of emission allowances Other stat
Slide 18: Electricity Generation in Q1 Strategic Assets
ELECTRICITY GENERATION IN Q1 Renewables (+17%) STRATEGIC ASSETS* (Hydro, Wind, Sun, Biomass, Biogas) Hydro—Czechia (+37%) + Higher generation at hydroelectric power plants due to better-then-average hydrometeorologic conditions Wind—Germany (-42%) - Worse-than-average weather conditions - Operationa
Slide 19: EBITDA of Segment: Generation (Strategic Assets) Detail, by Generation Sources
EBITDA OF SEGMENT: GENERATION (STRATEGIC ASSETS) DETAIL, BY GENERATION SOURCES (CZK bn) Q1 2020 Q1 2021 Change % Zero-emission Generating Facilities 6.6 7.3 +0.7 +11% thereof nuclear 5.6 6.3 +0.7 +12% thereof renewables 1.0 1.1 +0.0 +4% Fossil Fuel Generation 3.6 2.4 -1.1 -32% Trading 2.6 0.0 -2.6 -
Slide 20: The Segment EBITDA: Mining
THE SEGMENT EBITDA: MINING (CZK bn) Q1 2020 Q1 2021 Change % Czechia 1.4 1.5 +0.2 +12% Total 1.4 1.5 +0.2 +12% Czechia (CZK +0.2 bn) ▪ Higher revenues related to higher coal deliveries to CEZ Group (CZK +0.2 bn) ▪ Decrease in revenues from coal sales to external customers (CZK -0.1 bn) ▪ Lower fixed
Slide 21: Contents
CONTENTS Financial Highlights and Selected Events Financial Performance of Business Segments Annual Outlook 20 CEZ GROUP
Slide 22: Estimated Electricity Generation in 2021 Strategic Assets
ESTIMATED ELECTRICITY GENERATION IN 2021 STRATEGIC ASSETS Renewables (-1%) (Hydro, Wind, Sun, Biomass, Biogas) Hydro—Czechia (+1%) + Higher generation due to better-then-average hydrometeorological conditions - Planned repairs at small hydroelectric power plants Biomass—Czechia (-8%) - Generation de
Slide 23: CEZ Group's Financial Outlook for 2021: EBITDA of CZK 57–60 bn
CEZ GROUP’S FINANCIAL OUTLOOK FOR 2021: WE EXPECT EBITDA OF CZK 57–60 BN, ADJUSTED NET INCOME AT CZK 17–20 BN CZK bn 64.8 EBITDA Main Year-On-Year Effects (2021 vs. 2020): 57–60 - Sale of Romanian and Bulgarian assets 7.6 2–3* - Higher expenses on emission allowances for generation - Lower revenue f
Slide 24: Decrease in share of fossil-fuel production and mining in strategic assets EBITDA
IN 2021, WE EXPECT A DECREASE IN THE TOTAL SHARE OF FOSSIL-FUEL PRODUCTION AND MINING ON STRATEGIC ASSETS EBITDA BELOW 10% 2020 EBITDA—Strategic Assets 2021 EBITDA—Strategic Assets (CEZ Group Excluding Assets for Sale) (CEZ Group Excluding Assets for Sale) 23 CEZ GROUP
Slide 25: CEZ continues hedging market risks of generation margin for 2022–25
CEZ CONTINUES HEDGING MARKET RISKS OF GENERATION MARGIN FOR 2022–25, 30 TWH SOLD FOR 2022 AT 47.3 EUR/MWH AND 8.7 MIL. TONS OF EUA PURCHASED AT 23.5 EUR/T Electricity Sold for 2022 – 2025 in TWh (as at March 31, 2021) Contracted emission allowances in million tons for 2022 – 2025 (as at March 31, 20
Slide 26: Annexes
ANNEXES ▪ Estimated Year-On-Year Change in Strategic Assets EBITDA—By Segment ▪ Operating Revenues for Q1 by Segments and Countries—Year-On-Year Comparison ▪ Investments in Fixed Assets (CAPEX) in Q1—Year-On-Year Comparison ▪ Change in Net Debt in Q1 (Cash Flow) ▪ Debt Position and Structure as at M
Slide 27: Estimated year-on-year change in strategic assets EBITDA 2021 vs. 2020 by segment
ESTIMATED YEAR-ON-YEAR CHANGE IN STRATEGIC ASSETS EBITDA 2021 VS. 2020 IN INDIVIDUAL BUSINESS SEGMENTS STRATEGIC ASSETS EBITDA 2020 (Total Year-On-Year Unchanged to Decrease up to CZK 3 bn) SALES Segment + Growth ambitions in ESCO services + Negative effect of COVID-19 on ESCOs in 2020 - Settlement
Slide 28: CEZ Group Operating Revenues for Q1, by Main Business Segments and Countries
CEZ GROUP OPERATING REVENUES FOR Q1, BY MAIN BUSINESS SEGMENTS AND INDIVIDUAL COUNTRIES SALES (CZK bn) Q1 2020 Q1 2021 Change % Operating Revenues for Q1 2021 Czechia 14.1 14.5 +0.4 +3% Germany 3.1 3.4 +0.3 +8% Other Countries Assets for Sale Romania 2.5 2.3 -0.2 -7% 2% Germany Poland Bulgaria 4.5 4
Slide 29: Capital Expenditures in Q1 by Segment
CAPITAL EXPENDITURES IN Q1 BY SEGMENT CZK bn Q1 2020 Q1 2021 GENERATION segment 1.5 1.3 Thereof: Nuclear fuel procurement 0.6 0.5 MINING segment 0.3 0.3 DISTRIBUTION segment 1.7 2.2 SALES segment 0.2 0.2 Strategic Assets Total 3.6 4.1 Poland 0.2 0.0 Romania 0.4 0.5 Bulgaria 0.3 0.3 Assets for Sale T
Slide 30: Net debt down by CZK 27.5 bn in Q1
NET DEBT DOWN BY CZK 27.5 BN IN Q1 DUE TO PAYMENT OF THE PURCHASE PRICE FOR ROMANIAN ASSETS AS OF MAR 31, 2021 Additions Net debt as Other to non- Net debt as Čistý dluh Úroky, Interest, Ostatní operating Nabytí stálých current Divestice / Acquisitions Čistý at dluh Mar 31, at Dec 31, k 31.12.2020 2
Slide 31: Debt Position and Structure as of Mar 31, 2021
DEBT POSITION AND STRUCTURE AS OF MAR 31, 2021 CEZ GROUP MAINTAINS A STRONG LIQUIDITY POSITION Utilization of Short-Term Lines and Available Committed Credit Facilities* (as of Mar 31, 2021) Bond Maturity Profile (as of Mar 31, 2021) CZK bn In Q2 2021, after receiving of funds from the divestment CZ
Slide 32: Currency Hedging of Estimated Revenues from Electricity Generation in 2022-2025
CURRENCY HEDGING OF ESTIMATED REVENUES FROM ELECTRICITY GENERATION IN 2022-2025 Currency hedging of estimated revenues from electricity generation as of Mar 31, 2021 2022 2023 2024 2025 Total currency hedges 99 % 91 % 80 % 76 % (natural & transaction) as at Mar 31, 2021 Natural currency hedges (debt
Slide 33: Specifics of Factors Affecting the Hedging of Commodity Risks of Generation
SPECIFICS OF FACTORS AFFECTING THE HEDGING OF COMMODITY RISKS OF GENERATION Specification of influences that affect achieved prices of generated electricity and the purchase prices of emission allowances in Czechia, or effects causing deviations of achieved prices from average hedging prices continu
Slide 34: Market Developments
MARKET DEVELOPMENTS 33 CEZ GROUP
Slide 35: Electricity balance (GWh)
Electricity balance (GWh) Index Q1 2020 Q1 2021 2021/2020 Electricity procured 14,923 14,320 -4% Generated in-house (gross) 16,582 15,857 -4% In-house and other consumption, including pumping in pumped-storage plants -1,658 -1,538 -7% Sold to end customers -9,719 -9,842 +1% Sold in the wholesale mar
Slide 36: Electricity balance (GWh) by segment
Electricity balance (GWh) by segment Q1 2021 Generation Distribution Sale Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 14,192 -4% 0 - 127 +9% 0 - 14,320 -4% Generated in-house (gross) 15,725 -4% 0 - 132 +9% 0 - 15,857 -4% In-house and other consumption, includi
Slide 37: Electricity balance (GWh) by country
Electricity balance (GWh) by country Q1 2021 Czechia Poland Romania Bulgaria Germany Others Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 13,295 -3% 569 -7% 388 -11% 1 -11% 67 -42% 0 - 0 - 14,320 -4% Generated in-house (gross) 14,730 -4%
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