CEZ's Consolidated Quarterly Report on Operational, Economic and Financial Results for 1st Three Quarters 2000, in accordance with IAS

• Demand for electricity (38.1 TWh) increased by 1.8%
• ČEZ´s share in the electricity wholesale market decreased from 73.8% to 65.2%, largely as a result of lower sales of ČEZ´s own generation and in part due to changes of methodology and a contract termination in January 2000 for electricity purchased, from Elektrárny Opatovice, for resale
• Net income CZK 5.2 bn higher by CZK 3.2 bn (by 159%) mainly due to the fluctuating exchange rate of CZK, changes in the foreign currency portion of the debt, as well as a provision for terminated retrofit costs of Tušimice I included in 1999 base
• Maximum load reached 10,128 MW and is by 2% (202 MW) higher than in 1999
• The non-commercial tests of the 1st unit of Nuclear Power Plant Temelín were started
• The Czech government adopted an electricity sector privatisation plan in October

Prague, 30th October 2000

Income Statement in Accordance with International Accounting Standards (IAS)		30 Sept 2000	30 Sept 1999	Index 00/99
Operating revenues	CZK	37,705,277	38,171,428	98.8%
Operating expenses	CZK	30,110,734	31,838,509	94.6%
Fuel	CZK	9,504,562	8,807,145	107.9%
Purchased power	CZK	3,636,968	5,219,134	69.7%
Depreciation and amortization	CZK	6,529,727	6,410,729	101.9%
Operating income	CZK	7,594,543	6,332,619	119.9%
Other expenses (income)	CZK	850,345	2,378,052	35.8%
Income before taxation	CZK	6,744,198	3,954,867	170.5%
Income tax	CZK	1,509,773	1,930,983	78.2%
Net income	CZK	5,234,425	2,023,884	258.6%
Earnings per share (EPS)	CZK	8.8	3.4	258.8%
Price earning ratio (P/E)*	1	7.6	12.5	60.8%
Return on equity (ROE) net*	%	7.3	4.0	182.5%
Return on total assets (ROA) net*	%	4.1	2.3	178.3%
Assets turnover*	1	0.26	0.28	92.9%
Total indebtedness (provisions excluded)	%	33.7	33.9	99.4%
Long-term indebtedness	%	24.6	21.5	114.4%
* For the last 12 months

 

Revenues, Expenses, Income

Income Statement, Balance Sheet and Cash Flow are converted to International Accounting Stan-dards (IAS) from Czech Accounting Principles and may differ significantly from the same data prepared according to Czech Accounting Principles.

Net income for the period January to September amounted to CZK 5.2 bn, an increase of CZK 3.2 bn (158.6%) in comparison with the same period of 1999. This improvement results mainly from fluctuating exchange rate of CZK, changes in the level and structure of the foreign currency portion of debt, as well as from the 1999 terminated retrofit of Tušimice I (CZK 2.3 bn).

Total revenues of ČEZ amounted to CZK 37.7 bn and were CZK 0.5 bn (1.2%) lower than in the same period of previous year.

Operating expenses amounted to CZK 30.1 bn, and were CZK 1.7 bn (5.4%) lower than in 1999.

Other expenses amounted to CZK 0.9 bn, i. e. a decrease of CZK 1.5 bn. This results, as mentioned, mainly from exchange rate changes, as well as from changes in the foreign currency portion of debt.

Income tax amounted to CZK 1.5 bn, a decrease of CZK 0.4 bn (21.8%) in comparison with the same period of the previous year.

Earnings per share increased from 3.4 CZK to 8.8 CZK due to the higher profit.

Price earning ratio decreased from 12.5 to 7.6 due to the higher increase of profit in comparison with the slight increase of share price.

Return on equity net rose from 4.0% to 7.3% as a result of a higher increase of profit in comparison with the increase of average capitalization.

Return on total assets net rose from 2.3% to 4.1% due to higher increase of profit in comparison with the increase of average total assets.

Total indebtedness (provisions excluded) decreased and amounted to 33.7%, long-term indebtedness increased and amounted to 24.6%.

The number of employees decreased from 9,266 at the beginning of the year to 9,007 as of 30 September 2000 (by 259 employees).

Sale of Electricity

In comparison with the same period of 1999, of the CZK 3.9 bn decrease in sales of electricity an amount of CZK 3.4 bn (for auxiliary services invoiced to EEPS separately from February 2000) was reclassified to "Heat sales and other revenues", i. e. sales of electricity as a whole decreased by CZK 0.5 bn (1.4%).

Demand for electricity (38,081 GWh) increased by 3.7% (1,374 GWh), from that 700 GWh is the result of methodology changes, i. e. the real increase is only 1.8%. High voltage consumption including consumption of autoproducers increased by 7.1% (1,572 GWh), but the real increase is - for above mentioned reasons - only 4%. On the contrary, low voltage consumption as a whole, decreased by 1.2% (174 GWh), from that commercial sector by 0.9% (46 GWh) and households consumed less by 1.3% (128 GWh) - due to warmer weather from January to September 2000 and the increase of prices by 15% since January.

ČEZ´s share in meeting demand for electricity in the Czech Republic decreased from 73.8% to 65.2%, largely as a result of lower sales of ČEZ´s own generation and in part (more than one third) from that more than one third is the result of changes of methodology and a contract terminationfinished in from January 2000 for electricity purchased, from Elektrárny Opatovice, for resale.

The total sales of ČEZ in the Czech Republic decreased by 2,226 GWh (7.5%). On the contrary, ČEZ increased electricity export by 6,121 GWh (199,6%).

Investment Program

As a whole, capital investment during the first nine months of 2000 reached CZK 13.9 bn, a decrease of CZK 1.2 bn (8%) in comparison with the first nine months of 1999.

The total amount spent on the NPP Temelín during the first nine months was CZK 6.4 bn. In July the Nuclear Safety Authority granted permission for fuel loading into the 1st unit. Subsequently, non-commercial tests started, followed by the activation of nuclear fuel in October.

The updating program at NPP Dukovany continues, in September ČEZ signed a contract with ŠKODA JS for the complete renovation of the instrumentation and control system.

Financing

During period January - September 2000 ČEZ fulfilled all its financial commitments.

Net cash provided by operating activities increased to CZK 13.8 bn (by CZK 2.5 bn).

The total cash used in investing activities reached CZK 13.9 bn. As a result, there was no need for cash from financing activities. Also, proceeds from borrowings and payments of borrowings were balanced.

In March ČEZ established program for short-term securities (promissory notes) with eight banks for a total amount of CZK 9 bn (with CZK 7.5 bn committed).

In April, after drawing the 1st portion of the debt (EUR 100 m), ČEZ signed five-year syndicated guarantee EUR 85 m, that is a condition for borrowing the second portion of the loan from European Investment Bank.

ČEZ called and repaid early the 3rd domestic bond issues (CZK 4 bn) as of 6 June 2000.

Other information

The Czech government adopted a privatisation plan in October to sell shares of ČEZ together with shares in six of the eight regional distribution companies (Západočeská energetika, Severočeská energetika, Jihomoravská energetika, Východočeská energetika, Severomoravská energetika, Středočeská energetická).

In October ČEZ donated the wind power plant Dlouhá Louka to the Česká Akademie vid.

Income Statement in Accordance with International Accounting Standards (IAS) (CZK 1,000)	30 Sept 2000	30 Sept 1999
Operating revenues	37,705,277	38,171,428
Sales of electricity	32,349,017	36,248,680
Heat sales and other revenues	5,356,260	1,922,748
Operating expenses	30,110,734	31,838,509
Fuel	9,504,562	8,807,145
Purchased power	3,636,968	5,219,134
Repairs and maintenance	3,357,944	3,398,028
Depreciation and amortization	6,529,727	6,410,729
Salaries and wages	2,691,552	2,597,734
Nuclear decommissioning and fuel storage	762,680	759,662
Materials and supplies	1,408,864	1,430,679
Costs of ash storage, air and water pollution and environmental claims	259,099	245,034
Other operating expenses	1,959,338	2,970,364
Income before other expenses/income and income tax	7,594,543	6,332,919
Other expenses/income	850,345	2,378,052
Interest income	-138,013	-96,945
Interest on debt, net of capitalized interest	651,735	612,418
Exchange rate losses (gains)	381,682	1,841,557
Other expenses/income	221,241	438,785
Equity in earnings of affiliate	-266,300	-417,763
Income before income tax	6,744,198	3,954,867
Income tax	1,509,773	1,930,983
Net income	5,234,425	2,023,884

Cash Flow in Accordance with International Accounting Standards (IAS) (CZK)	30 Sept 2000	30 Sept 1999
Cash as at 1 January	4,356,956	1,008,231
Operating activities:	13,835,009	11,370,392
- Income before income taxes	5,234,425	2,023,884
- Depreciation and amortization	6,552,319	6,466,743
- Amortization of nuclear fuel	1,105,930	1,052,239
- Provision for nuclear decommissioning and fuel storage	219,381	225,314
- Changes in assets and liabilities	539,796	991,216
Investment activities	-13,902,882	-15,112,201
Financing activities	7,562	5,243,985
Cash as at 30 June	4,296,645	2,510,407

	30 Sept 2000	30 Sept 1999
Net electricity generation in the Czech Republic (GWh)	49,583	41,803
Electricity generation at ČEZ - net (GWh)	34,479	29,672
Electricity sold by ČEZ in the Czech Republic (GWh)	27,395	29,621
- Electricity sold by ČEZ to REAS (GWh)	26,771	29,443
- Price of electricity sold to REAS (CZK/MWh)	999	1,142
- dtto incl. auxiliary servicies	1,125	1,142
- dtto incl. auxiliary servicies, without transmission a dispatch services	1,053	1,072
ČEZ´s electricity export (GWh)	9,187	3,066
ČEZ´s electricity imports (GWh)	515	740

Balance Sheet in Accordance with International Accounting Standards (IAS)(CZK)	30 Sept 2000	31 Dec 1999
Assets	212,436,466	207,059,085
Fixed assets	200,939,618	194,626,391
Plant in service	166,541,748	163,973,512
Less accumulated provision for depreciation	80,003,883	73,983,232
Net plant in service	86,537,865	89,990,280
Nuclear fuel, at amortized cost	5,078,023	4,913,533
Construction work in progress	100,489,716	91,459,756
Investment in affiliate	5,500,472	5,351,350
Other non-current assets, net	3,333,542	2,911,472
Current assets	11,496,848	12,432,694
Cash	4,296,645	4,356,956
Receivables, net	2,978,062	4,491,744
Materials and supplies, net	2,342,293	2,172,057
Fossil fuel stock	551,036	796,786
Prepayments	1,328,812	615,151
Shareholders´ equity and liabilities	212,436,466	207,059,085
Shareholders´ equity	119,178,084	113,943,659
Stated capital	59,208,846	59,208,846
Retained earnings	59,969,238	54,734,813
Long-term liabilities	77,953,131	76,490,231
Long-term debt, net amount due within one year	51,743,852	51,084,307
Accumulated provision for nuclear decommissioning
and fuel storage	16,491,690	16,272,310
Deferred income taxes, net	9,717,589	9,133,614
Current liabilities	15,305,251	16,625,195
Short-term loans	1,278,947	2,803,947
Long-term debt due within one year	3,735,760	2,664,961
Accounts payable	3,548,905	4,552,406
Accrued liabilities	6,741,639	6,603,881

Consolidated Statement of Shareholders´ Equity in accordance with IAS (CZK m)	Stated Capital	Retained Earnings	Total
December 31, 1998	59,208,846	49,600,428	108,809,274
Net Income for period 1-9/1999		2,023,884	2,023,884
September 30, 1999		-29	-29
Net Income for period 10-12/1999	59,208,846	51,624,283	110,833,129
Retained loss ČEPS of previous year		3,110,530	3,110,530
December 31, 1999	59,208,846	54,734,813	113,943,659
Net Income for period 1-9/2000		5,234,425	5,234,425
September 30, 2000	59,208,846	59,969,238	119,178,084

Capacity, Employees	30 Sept 2000	31 Dec 1999
Installed capacity ČEZ (MW)	10,145	10,151
Number of employees (pers)	9,007	9,266
Specific number of employees (pers/MW)	0.888	0.91

This report has not been audited .