CEZ As · PSECZ:CEZ
CEZ As — ČEZ, a. s. — Shareholder Meeting (June 2018)
13 slides from CEZ As's shareholder meeting presentation, Jun 22, 2018
Slide 1: Annex 1: Report on the Business Operations and Assets of ČEZ, a. s. for 2017
ANNEX 1: REPORT ON THE BUSINESS OPERATIONS AND ASSETS OF ČEZ, A. S. FOR 2017 Prague, June 22, 2018
Slide 2: CEZ Group managed to achieve key financial and strategic targets in 2017
CEZ GROUP MANAGED TO ACHIEVE KEY FINANCIAL AND STRATEGIC TARGETS IN 2017 Selected CEZ Group Financial Results in 2017 EBITDA CZK 53.9 billion Net Income CZK 19.0 billion Adjusted net income CZK 20.7 billion OPERATIONS TEAM DEVELOPMENT TEAM Mining Distribution Generation—Traditional Energy Sale
Slide 3: Wholesale electricity prices slightly growing after many years of decline
WHOLESALE ELECTRICITY PRICES SLIGHTLY GROWING FOR ALMOST 2 YEARS AFTER MANY YEARS OF DECLINE IN CONNECTION WITH GROWING PRICES OF COAL AND EMISSION ALLOWANCES Wholesale price of electricity at EEX EUR/MWh, 2019 Base Load 40 Growing price of CO2 emission allowances due to approved MSR reform 30 Risin
Slide 4: CEZ Group Financial Performance
CEZ GROUP FINANCIAL PERFORMANCE Year Year Change Unit 2016 2017 % Operating revenues CZK millions 203,744 201,906 (0.9%) EBITDA CZK millions 58,082 53,921 (7.2%) EBIT CZK millions 26,114 25,620 (1.9%) Net income CZK millions 14,575 18,959 +30.1% Adjusted net income* CZK millions 19,640 20,698 +5.4%
Slide 5: Contribution to 2017 EBITDA by Segment
CONTRIBUTION TO 2017 EBITDA BY SEGMENT CZK billions 2.2 4.6 19.0 5.0 19.1 53.9 4.1 GENERATION— GENERATION— MINING DISTRIBUTION SALES OTHER Traditional Energy New Energy 2017 vs. 2016 Change in EBITDA % -8% -13% +47% -6% -16% -10% -7% CZK bn -0.4 -2.9 +1.6 -1.3 -0.9 -0.3 -4.2 4
Slide 6: CEZ Group Cash Flows
CEZ GROUP CASH FLOWS CZK billions 2016 (16.5) (34.6) 49.0 2017 (24.3) (20.2) 45.8 -100 -50 0 50 100 Financing activities and net effect of currency translation in cash Investing activities Operating activities 5
Slide 7: CEZ Group Assets, Equity, and Liabilities
CEZ GROUP ASSETS, EQUITY, AND LIABILITIES Total Assets CZK billions Equity and Liabilities CZK billions 6
Slide 8: CEZ Group Capital Investment
CEZ GROUP CAPITAL INVESTMENT CZK 29.1 Billion in Total (2017) Conventional and other generating facilities: Construction of a new supercritical facility in 6.1 Ledvice Other investments in facility renovation Electricity distribution: Mining: Czechia: CZK 9.6 billion 12.5 1.6 Modernization a
Slide 9: CEZ Group Electricity Generation
CEZ GROUP ELECTRICITY GENERATION 61.1 62.9 65.4 7.4% 7.4% 4.7 7.3% 4.5 4.7 53.2% 47.5% 31.0 47.3% 29.9 32.5 39.4% 28.3 45.1% 29.7 45.4% 24.1 2016 2017 E 2018* Nuclear Coal, gas Hydro, wind, biomass and solar 8 * based on facts known at March 19, 2018
Slide 10: ČEZ, a. s. Financial Results and Dividend Policy
ČEZ, A. S. FINANCIAL RESULTS AND DIVIDEND POLICY Unit 2016 2017 change % Operating revenues CZK millions 81,793 77,257 (5.5%) EBITDA CZK millions 16,793 15,468 (7.9%) EBIT CZK millions 1,455 2,891 +98.7% Net income CZK millions 8,834 5,105 (42.2%) Total assets CZK millions 536,934 532,770 (0.8%) Equ
Slide 11: Energy sector regulation significantly affects CEZ Group in all countries where it operates
ENERGY SECTOR REGULATION SIGNIFICANTLY AFFECTS CEZ GROUP IN ALL COUNTRIES WHERE IT OPERATES 10
Slide 12: CEZ Group estimates 2018 EBITDA at CZK 51 to 53 billion
CEZ GROUP ESTIMATES 2018 EBITDA AT CZK 51 TO 53 BILLION AND ADJUSTED NET INCOME AT CZK 12 TO 14 BILLION CZK bn EBITDA 100 80 53.9 51‒53 EBITDA 2017 53.9 52,0 60 Specific year-on-year effects (3.6) 40 20 Generation—Traditional Energy +0.9 0 2017 2018 E Mining +0.1 Generation—New ADJUSTED Energy +0.5
Slide 13: Strategic priorities reflect main trends in Europe's energy sector
STRATEGIC PRIORITIES REFLECT MAIN TRENDS IN EUROPE’S ENERGY SECTOR I Be among the best II Offer customers III Strengthen in the operation of conventional power a wide range of products and consolidate facilities and proactively respond to the and services addressing their our position in Europe chal