Press releases pg. 3

Operating income before depreciation and amortization (EBITDA) reached CZK 62.4bn in the first half of the year, up 5% year on year. The year-on-year comparison is affected by extreme fluctuations in commodity prices, especially last year following Russia’s military invasion of Ukraine and the subsequently introduced levies on excess generation sales of CZK 11 billion. These costs almost eliminated the year-on-year increase in selling prices of electricity generated. Net income for H1 2023 reached CZK 22.3bn, down CZK 11.3bn year on year. The decrease was caused by the newly introduced windfall tax of 60 percent, which resulted in more than CZK 13bn charged to costs. CEZ Group confirms its 2023 full-year outlook: EBITDA of CZK 105 to 115bn and adjusted net income of CZK 33 to 37bn. CEZ Group will have paid CZK 110 to 120bn to the Czech state this year in dividends, income taxes and levies on excess generation sales.

CEZ Group has improved its ESG rating with Morningstar Sustainalytics, one of the world's leading agencies focused on assessing companies from a sustainability perspective. Thanks to a 7.6 point shift, CEZ now ranks among the top quarter of global energy companies best rated by the agency. For investors, banks, or insurance companies, the ratings serve as confirmation that CEZ Group is meeting its ambitious sustainable goals and so can, for example, obtain better financing for its projects.

A more favourable interest rate in the case of a better sustainability rating - this is the basic condition of a new line of credit that the largest Czech energy company is opening with UniCredit Bank. For CEZ, this is the first-ever LOC tied to an ESG rating. CEZ Group recently ranked among the top 15% of publicly traded companies globally in ESG, and its ESG rating is continuously improving.

Its EBITDA in Q1 reached CZK 32.5 billion. The year-on-year decrease of CZK 11.1 billion was mainly due to extraordinary profits of over CZK 10 billion in 2022. This is due to the extreme increase and fluctuations in commodity prices following Russia's military invasion of Ukraine, the implemented liquidity measures and record profits from commodity trading last year. Net income in Q1 reached CZK 10.8 billion, a year-on-year decrease of CZK 15.9 billion. Beyond the decrease in operating profit, the newly introduced windfall profits tax of 60% had a major impact. CEZ Group specified its financial outlook for the entire year 2023: An EBITDA of CZK 105 to 115 billion and a net income of CZK 33 to 37 billion. The ČEZ Board of Directors approved the dividend proposal in a record amount of CZK 117 per share and set the date for the Annual Shareholder’s Meeting at June 26, 2023 in Prague. If the proposed dividend is approved by the Annual Shareholders’ Meeting, CEZ Group will pay more than CZK 100 billion to the Czech state this year in dividends, income taxes and levies from excessive production sales.