Press releases pg. 88

Despite negative market developments, the ČEZ Group managed to fulfill its planned financial results. Revenues rose by more than CZK 5 billion year on year, reaching CZK 215.1 billion. Operating Profit Before Tax (EBITDA) declined by 2.1% year on year (by CZK 1.8 billion) to CZK 85.5 billion, but exceeded expectations by 0.5 billion. Net Profit showed just a slight year-on-year slip by 1.5% to CZK 40.2 billion (CZK 0.2 billion more than expected). In 2013, the ČEZ Group expects its EBITDA to reach some CZK 80 billion, with Net Profit around CZK 37 billion. The expected profit decline reflects the adverse developments in European energy markets, a substantial drop of electricity prices, lower allocations of emission allowances for power generation, and declining power generation in the Czech Republic.

Today, ČEZ has officially informed the Albanian Government about its intention to initiate international arbitration. The ground is the non-protected investment in the power distribution company of CEZ Shpërndarje. The ČEZ Group expects to receive compensation for the damage incurred as the company is entitled to the compensation according to international law.

Albania regulator has decided today to revoke the business license of CEZ Shpërndarje. According to ČEZ, these steps are in violation of the local legislation, and the corporation is going to lodge a formal protest against the decision. At the same time, ČEZ is going to take first steps to initiate an international arbitration.

The ČEZ Group has initiated a process to sell its Albanian distribution business, CEZ Shpërndarje. Potential buyers may thus express their interest during January, and a decision on the subsequent steps will be made afterwards. At the same time, the ČEZ Group continues to negotiate with the Albanian authorities how to resolve the situation at hand.