Press releases pg. 75

Net income adjusted for extraordinary effects was CZK 27.7bn in 2015, which exceeds original expectations by more than CZK 700m despite a further decrease in the realization prices of generated electricity and lower production in nuclear power plants. A positive effect was derived especially from the refund of a portion of tax on emission allowances from 2011 and 2012 and a successfully implemented program of savings and pro-growth measures. CEZ Group managed to cut fixed costs by CZK 3bn while increasing total revenues to CZK 210bn, primarily thanks to increased sales of electricity, gas, and heat to end customers.

ČEZ today submitted a non-binding offer to acquire Vattenfall’s German lignite and hydro activities. These assets represent an interesting opportunity to expand business of CEZ in a neighboring region. In Europe where coal is still crucial for the overall energy supply, CEZ has extensive know-how in operation of conventional power plants and of lignite mining, as a bridge technology to more renewable energy sources.

At today’s meeting, the ČEZ Supervisory Board re-elected Martin Novák as member of the board of directors for the next four-year term that runs from May next year. “With the approaching end of the current office term of this key manager, the company in this way expressed that it also counts on him for the future. Thanks to this, continuity shall be maintained in key areas of company management, especially at present when he was in the scope of recent changes delegated to head the entire Operations Team from next year,” explained Chairman of the Supervisory Board prof. Václav Pačes.

ČEZ Group resolves to improve its energy efficiency and reduce CO2 emissions per MWh generated in the Czech Republic by 46% before 2020 as compared to 2001. ČEZ thus joins other energy companies that declared their specific goals in the context of the Paris climate conference. ČEZ is actively negotiating in Paris for effective carbon pricing and interconnection of CO2 trading, and is one of about 100 international companies and other organizations that have already supported “business proposals.”