Foreign Equity Shares

• Bulgaria
• Romania
• Poland
• Slovakia
• Hungary
• The Netherlands
• Germany
• Serbia
• Bosnia and Herzegovina
• Turkey
• Albania
• Further foreign capital participations of the ČEZ Group

 

CEZ Group commenced its foreign expansion in January 2005 when it won the privatization tender and obtained majority shares in three Bulgarian distribution companies. In autumn 2005, ČEZ succeeded in the privatization tender for the purchase of majority share in Electrica Oltenia, the largest Romanian distribution company. In 2006, ČEZ Group expanded its foreign portfolio by three power generation plants, the Polish Elcho and Skawina power plants and Varna power plant in Bulgaria. A year later, the most important acquisition was the partnership with MOL, Hungarian oil and gas company, focusing particularly on building gas-fired power plants. In 2008, ČEZ made significant acquisitions in the form of construction of the Europe’s largest wind park in Romania. In the same country, ČEZ became the selected partner for the construction of the third and fourth block of the Černavoda power plant. At the end of 2008, ČEZ was selected by the Slovak government as the partner for the construction of the Jaslovské Bohunice nuclear power plant. In 2008, ČEZ also successfully entered the Turkish market and won a privatization process for an Albanian distribution company.

Now, foreign activities of the ČEZ Group focus on renewable resources, especially in the area of wind and water power plants.

Bulgaria

The acquisition in the value of several billion Czech crowns allowed ČEZ Group to take over 67 % share in three Bulgarian distribution companies - Electricity Distribution Company Sofia Oblast AD, Electricity Distribution Company Pleven AD and Electricity Distribution Company Stolichno AD from the Bulgarian state in 2005. This transaction resulted in the increase of ČEZ Group customers by 1.9 million. The total amount of electricity supplied by these three distribution companies to their customers per year is 8 TWh. In the area of 39 000 km2 the group supplies electric energy to more than 200 thousand companies and more than 1.7 million households. The companies have more than 3.7 thousand employees.

On2 November 2007 the merger of three Bulgarian distribution companies was registered in the Companies Register. As per that date Electricity Distribution Company Sofia Oblast AD and Electricity Distribution Company Pleven AD ceased to exist without liquidation and their overall property was transferred to their legal successor which is Electricity Distribution Company Stolichno AD. On 6 December 2007 the general meeting of the company decided on the change of the company name to CEZ Razpredelenie Bulgaria AD. The change was registered on 29 January 2008.

CEZ Razpredelenie Bulgaria AD

Strategic business targets include improvement of economic effectiveness, reliability of power supply and enhancement of competitive strength. Within the scope of its activities, it particularly attends to the measures securing reliable electric power supply through quality maintenance and advancement of the technical condition of the electric distribution network, necessary maintenance of installations and equipment, and development of the distribution network in accordance with the prognosis of economic development of the state and the presumed changes in electricity consumption in the region. The company intends to develop distribution networks in conformity with the development of the capital city and the other regions, and to increase quality of supplies of electricity and services according to the requirements of European standards. The investment program is focused on improvement of quality of electric power supply, reduction of technical and business losses and reduction of repair time.

Further information is available at www.cez-rp.bg.

CEZ Bulgaria EAD

CEZ Bulgaria EAD was established in the middle of 2005 in order to represent ČEZ Group on the Bulgarian power market. The major activities of CEZ Bulgaria EAD are focused particularly on support of activities of ČEZ Group in Bulgaria.

The company has been also engaged in relations with Bulgarian institutions and other entities operating on the Bulgarian power market. Another important role of CEZ Bulgaria EAD is coordination of activities of all ČEZ companies in Bulgaria: CEZ Elektro Bulgaria AD, currently the single distribution company CEZ Razpredelenie Bulgaria AD, TEC Varna EAD, CEZ Laboratories EOOD and CEZ Trade Bulgaria EAD.

Further information is available at www.cez.bg.

CEZ Trade Bulgaria EAD

Sale of electricity to rightful customers and trading on the wholesale market are attended to by CEZ Trade Bulgaria EAD. It has obtained a licence to perform these activities from the Bulgarian State Commission for Power Engineering and Water Management. The aim of CEZ Trade Bulgaria EAD is to strengthen the stable position on the Bulgarian electricity market and to cooperate with other entities in the area of the electricity market development.

Further information is available at www.cez.bg.

CEZ Elektro Bulgaria AD

CEZ Elektro Bulgaria AD is a trading company established on the basis of the requirements arising from the change of the Power Act and from the European regulations relating to the accession of Bulgaria to the European Union (particularly Directive 2003/54/EC). The company was incorporated on 29 August 2006 with the capital amounting to 50,000 BGN. ČEZ a.s. owns 67 % of capital of CEZ Elektro BulgariaAD. The company possesses a licence for public electricity supply, granted by the Bulgarian regulatory body.

After completion of the “unbundling” when the company took over supply activities from respective distribution companies, CEZ Elektro Bulgaria AD pursues its activities in the territory of former three distribution companies owned by ČEZ – current CEZ Razpredelenie Bulgaria AD. CEZ Elektro BulgariaAD performs all the activities relating to purchase, sale and customer services.

Further information is available at www.cez.bg.

CEZ Laboratories Bulgaria EOOD (in liquidation)

The company was established and registered in July 2007 and has its registered office in Sofia. The subject of enterprise of the company is inspection of electrometers and switching devices, and maintenance of electrometers and tariff changeover switches.

The company was established by reason of the unbundling since it was necessary to separate the activities relating to electrometers from the distribution activity (distribution companies) and purchase of electrometers (CEZ Bulgaria EAD). Due to changes in legislation, liquidation of this company was initiated in 2011.

Further information is available at www.cez.bg.

Varna power plant - TEC Varna

At the beginning of October 2006 ČEZ completed acquisition of the Bulgarian black coal-fired power plant Varna.

Varna power plant is situated in the north-eastern Bulgaria close to the Black Sea port having the same name so that its position constitutes a comparatively significant logistic advantage. Having the installed capacity of 1 260 MW (6 x 210 MW), it is the largest conventional power plant of ČEZ Group, which put Prunéřov II. power plant (5 x 210 MW) located in northern Bohemia, which was until then the largest resource, to the second place. Combusting imported black coal, Varnagenerated 3.73 TWh of electric energy in 2007.

Further information is available at www.cez.bg/varna.

 

Romania

In 2005, ČEZ succeeded in the privatization process and obtained 51% majority share in Electrica Oltenia S.A. distribution company. As of 15 March 2007, the sales company CEZ Vanzare S.A. was split off from it (using a method similar to the spin-off defined by the Czech Commercial Code). The original company Electrica Oltenia S.A. now deals only with the distribution of electricity. The company was renamed to CEZ Distributie S.A. and its capital and nominal value of shares were reduced.In 2009, ČEZ completed buying out minority shares in both companies, and thus became their sole owner.At present, CEZ Poland Distribution B.V. is a holder of one share in each of the companies.

CEZ Group Members in Romaina

CEZ Romania S.A. is also operating in the country. Its primary objective is to provide maintenance and management services to members of the ČEZ Group and also serves as a team support for possible acquisitions in Romania. Before setting up a separate company CEZ Trade Romania S.R.L. in March 2007, it also carried out electricity trading activities on the basis of an obtained license.It has been fully operational since 2006.Shared services have been centralized into CEZ Servicii S.A. (founded in 2007) and are provided to other companies within the ČEZ Group in Romania. This company ceased to exist in 2010 as a result of merger with CEZ Romania S.A.

In June 2010, the first phase of the construction project of the Romanian wind farms in Fantanele and Cogealac was successfully put into operation. With the total installed capacity of 600 MW, the project is the largest of its kind in Europe. In connection with this project, ČEZ, a. s. currently owns a 99.9% stake in Tomis Team SRL, through which it also controls MW Team Invest SRL (100% owned by Tomis Team SRL), as well as a 95% stake in Ovidiu Development SRL. The remaining minority stake in Tomis Team SRL and Ovidiu Development SRL is held by CEZ Poland Distribution B.V., a 100% subsidiary of ČEZ, a. s.

In 2011, CEZ Romania S.A. acquired 100% share in the Romanian company TMK Hydroenergy Power S.R.L. Assets of the newly acquired company are located near the town of Resita and consist of 4 dams – Trei Ape, Gozna, Valiug, Secu, and 4 small hydro power plants – Crainicel I, Crainicel II, Grebla and Breazova. The total installed capacity of the system is about 18 MW. Installed capacity of each of the small hydro power station does not exceed 10 MW.

Further information is available at www.cez.ro.

 

Poland

In 2006, ČEZ, a. s., founded in Poland a 100% subsidiary CEZ Polska Sp. z o.o., whose main objective is to provide maintenance and management services to members of the ČEZ Group in Poland and to act as a support for further acquisition activities.The company is based in Warsaw.

CEZ Trade Polska Sp. z o.o. based in Warsaw was established in 2007 for the purpose of trading in electricity in Poland. It is a 100% subsidiary of ČEZ, a. s.

Other companies in Poland, in which ČEZ owns 100 % are: CEZ Towarowy Dom Maklerski sp. z o.o. (formerly CEZ Cieplo Polska Sp. z o.o.) and CEZ Produkty Energetyczne Polska Sp. z.o.o., which deals with waste management and energy by-products.

CEZ Group confirmed its serious interest in the Polish power sector by its successful participation in the tender for a purchase of majority shares in the upper Selsian power companies Elektrociepłownia Chorzów “Elcho“ Sp. z o. o. and Elektrownia Skawina S. A.  CEZ Group ownes about a 75 % share in Skawina and Elcho through CEZ Silesia B. V. and CEZ Poland Distribution B. V.

In September 2008, ČEZ, a. s. acquired a majority stake in Elektrownia Skawina S.A. from the Polish Government and in 2009, it purchased the remaining minority stakes. Thus, ČEZ, a. s. currently holds a 100% stake in the power plant through its subsidiary CEZ Poland Distribution B.V. In 2009, CEZ Nowa Skawina S.A. was founded for the purpose of constructing a new plant in Skawina. The company is headquartered in Skawina and it is 100% owned by ČEZ, a. s.

The generating capacity of the Skawina bituminous coal-fired plant,  including a little hydro-power plant in its territory, is 492 MW. Elcho produces combined electricity and heat in two modern units with the total generating capacity of 238 MW.

Additional information is available on the following websites:

• http://www.elektrownia.skawina.pl/
• http://www.elcho.com.pl

 

Slovakia

In Slovakia the 100 % subsidiary of ČEZ, a. s. named ČEZ Slovensko, s.r.o., with the registered office in Bratislava was established in June 2007. Its objective is active participation in electricity trading. This company replaced the organizational unit of ČEZ, a. s.

In December 2008, the co-operation of ČEZ with the Hungarian enterprise MOL, having the form of a joint venture of ČEZ and MOL, i.e. CM European Power International B.V., resulted in the foundation of CM European Power International s.r.o. based in Bratislava. Activities of the company consist in the construction of 800 MW combined cycle power station in the area of ​​Bratislava refinery of Slovnaft, a member of the MOL Group. In 2009, cooperation of ČEZ and MOL also lead to the registration of the Slovak company CM European Power Slovakia s.r.o. based in Bratislava.

The official pages of ČEZ Slovensko are available at www.cez.sk.

 

Hungary

The objective of the acquisition of the Hungarian company CZ-2005 Magyarország Kft., whose trade name was later changed by ČEZ to CEZ Hungary Ltd., is to create better conditions for electricity trading in Hungary and to arrange an access to the Hungarian transmission system. Since March 2006 CEZ Hungary Ltd. has a valid license for electricity trading and has been participating in electricity trading on the Hungarian market on an active basis.

In March 2009, ČEZ acquired a share in Dunai Gőzfejlesztő Kft. This acquisition was also a result of the co-operation of ČEZ and MOL and took place through their joint venture CM European Power International B.V. In April 2009, the company was renamed to MOL – CEZ European Power Hungary Ltd. It is based in Százhalombatta and its main activity is the construction of a 800 MW combined cycle power plant in the refinery in the town.

 

The Netherlands

CEZ Finance B.V. was founded in 1994 and before the Czech Republic’s accession to the European Union, ČEZ used to issue its foreign bonds through CEZ Finance B.V. In December 2007, CEZ MH B.V. was established (100% share), through which ČEZ holds 7% of MOL Nyrt shares.

ČEZ, a. s. acquired three other companies – CEZ Silesia B.V., CEZ Chorzow B.V. and CEZ Poland Distribution B.V. – in connection with acquiring stakes in Poland’s power utilities Elektrocieplownia Chorzow “ELCHO” Sp. z o.o. and Elektrownia Skawina S.A in 2006. ČEZ took over the ownership model of Polish power plants through these companies from the seller. CEZ Poland Distribution B.V. and CEZ Silesia B.V. also hold minority shares in Turkish and Romanian companies of the ČEZ Group.

The ČEZ-MOL joint venture, headquartered in the Netherlands, was founded in July 2008 under the name CM European Power International B.V., with ČEZ owning a 50% share.

In May 2009, CEZ International Finance B.V. was registered in the Netherlands in order to fund the MIBRAG project. ČEZ, a. s., also owns a share in AKENA B.V. through the Turkish company Akenerji Elektrik Üretim A.S.

In June 2009, ČEZ, a. s. acquired a stake in MIBRAG B.V. through JTSD Braunkohlebergbau GmbH (Germany). This company was dissolved as a result of a merger with JTSD Braunkohlebergbau GmbH in January 2010, which became its successor.

In January 2011, CEZ Bulgarian Investments B.V. was established in the Netherlands with registered capital of EUR 30,000. This is a 100% subsidiary of ČEZ, a. s., established with the aim of supporting the development of renewable sources of the ČEZ Group in Bulgaria.

CEZ Finance B.V.

Half yearly financial statements 2010 (unaudited)

Audited financial statements 2010

 

Germany

The ČEZ Group has been operating in Germany since 2001.  The main objective of CEZ Deutschland GmbH was electricity trading in the territory of Germany.  Due to the market liberalization and simplified licensing conditions in Germany, electricity trading via CEZ Deutschland GmbH was inhibited and terminated during the year, and the outstanding business activity was taken over by ČEZ, a. s.  The activity of CEZ Deutschland GmbH has been reduced to a minimum and it is assumed the company will be used for supporting other eventual activities or acquisitions of the ČEZ Group in Germany.

 

Serbia

Since 2006 ČEZ Srbija DOO has been operating in the Republic of Serbia, focusing particularly on search for acquisition opportunities. It has also obtained a license for electricity trading in Serbia.

 

Bosnia and Herzegovina

In March 2008, CEZ Bosnia and Herzegovina d.o.o. was registered. It is a 100% subsidiary of ČEZ, based in Sarajevo. The company was founded to promote the ČEZ Group’s activities in the region.

 

Turkey

At the beginning of July 2008, ČEZ, in consortium with the local Turkish partner, succeeded in the auction for the Sedaş distribution company.  In the Sakarya region, where Sedaş operates, almost 8 TWh of electricity is supplied to 1.3 million customers a year.  Fifty per cent of the clients are industrial customers.  With its 70 million citizens, Turkey is comparable with the whole of Central Europe; they consumed approximately 170 TWh of electricity in 2006.

Akcez Enerji A.S., a new company based in Istanbul in which ČEZ, a. s. owns a 27.5% share, was established in Turkey in November 2008.  The company capital stock is TRY 499,750,000.

In February 2009, Akcez Enerji A.S., a subsidiary of ČEZ, a. s., acquired a 99.99% share in Sakarya Elektrik Dagitim, A.S.

In May 2009, ČEZ, a. s. acquired a 37.3614% share in the Turkish company Akenerji Elektrik Üretim A.S., and through that company a share in the following companies: Egemer Elektrik Üretim A.S., AK-EL Yalova Elektrik Üretim A.S., Akenerji Elektrik Enerjisi Ithalat Ihracat ve Toptan ve Ticaret A.S., Akkur Enerji Elektrik Űretim Sanayi ve Ticaret A.S., Mem Enerji Elektrik Üretim Sanayi ve Ticaret A.S., AKKA Elektrik Üretim A.S., Ickale Enerji Elektrik Ǖretim ve Ticaret A.S., Akenerji Dogal Gaz Ithalat Ihracat ve Toptan Ticaret A.S.

 

Albania

The Albanian government signed an agreement on sale of a 76% share in OSSH, the only Albanian electricity distributor, with the ČEZ Group on 11 March 2009.

In May 2009, ČEZ, a. s. acquired a 76% share in Operatori i Sistemit te Shperndarjes Sh.A., an Albanian distribution company based in Tirana.  The balance of 24% is owned by the state of Albania.  The company was renamed CEZ Shpërndarje Sh.A.in 2010.

CEZ Albania Sh.A., a 100% subsidiary of ČEZ, a. s., was registered in Albania in April 2009.  The company is based in Tirana.  The company was established for the purposes of supporting activities of the ČEZ Group in the subject territory and providing shared and supporting services.

CEZ Trade Albania Sh.P.K., 100% owned by ČEZ, a. s., was registered in Albania in September 2009 for the purposes of electricity trading.  It is also based in Tirana.

 

Further foreign capital participations of the ČEZ Group

The Russian Federation

CEZ RUS OOO was registered in 2008. It is based in Moscow and provides support for the activities of the ČEZ Group in the territory of the Russian Federation. In accordance with the change of acquisition objectives, ČEZ Group’s activities in this area are currently suspended.

The Ukraine

In December 2006 ČEZ Ukraine CJSC with the 100 % share of ČEZ, a .s. was incorporated in the Ukraine. The company was established for the purpose of the support for the projects of ČEZ, a. s. in the Ukraine. In accordance with the change of acquisition objectives, ČEZ Group’s activities in this area are currently suspended.

Kosovo

In July 2006 New Kosovo Energy L.L.C. was established in Kosovo. The main objective of the company is to create favorable conditions for acquisition activities to be performed by the ČEZ Group. In October 2006 ČEZ, a. s. obtained a license for electricity trading in Kosovo. In accordance with the change of acquisition objectives, ČEZ Group’s activities in this area are currently suspended.

Ireland

CEZ Finance Ireland Ltd. 100% owned by ČEZ, a. s. was established in Ireland in May 2009.  This company, based in Dublin, was established in connection with and for the purposes of financing the MIBRAG project. In February 2011, CEZ Finance Ireland (No.2) Limited was established in Ireland. It is a 100% subsidiary of CEZ Finance Ireland Ltd.

Cyprus

In connection with the settlement of transactions that took place in 2008 in relation to the construction of a wind park Fantanele and Cogealac, Tomis Team S.R.L. acquired a 100% share in Taidana Limited.