CEZ a s : Annual report 2021 in PDF

cez group 2021 annual report I. actIvIty report

clean

energy of

tomorrow

We are commied to low-emission generation and carbon neutrality, delivering the most cost-effective energy solutions and the best customer experience on the market.

And we do it energeticAlly

CEZ Group's Profile

CEZ Group is a stable energy group, one of the largest economic entities in Czechia and Central Europe, employing more than 28,000 people. In its activities, CEZ Group emphasizes the implementation of global climate goals, decarbonization, and the impact of business activities on the environment in general. The core value is generated from emission-free electricity generation, distribution, and sales.

The largest shareholder of the parent company ČEZ is the Czech Republic with a nearly 70% stake in the company's stated capital. ČEZ shares are traded on the Prague and Warsaw stock exchanges and included in the PX and WIG-CEE exchange indices. As at December 31, 2021, the market capitalization of ČEZ was CZK 444 billion, and during its existence, ČEZ paid CZK 343 billion in dividends to shareholders.

CEZ Group Is a Vertically Integrated Energy Corporation

Our main business activity is the generation, distribution, trade, and sale of electricity and heat. Other important activities include commodity trading, trading and sale of natural gas, mining, and especially the provision of complex energy services, which belong to the dynamically growing business areas together with electromobility.

CEZ Group's total operating revenues amounted to CZK 227.8 billion in 2021. The importance of individual activities for the total value for shareholders indicates their share in EBITDA:

The Share of CEZ Group's Main Activities in EBITDA 2021

%GEnERATIOn-TradingGEnERATIOn-nuclear SourcesGEnERATIOn-Renewable SourcesGEnERATIOn-Emission SourcesmInInG

DISTRIBuTIOnSAlES

5

32

9

7

7

31

Total

9 100

In Czechia, CEZ Group companies generate and distribute electricity and heat, sell electricity, gas, and energy services, trade in commodities, provide telecommunications services, and are engaged in mining. They focus on innovation and investing in clean-tech companies.

They are active abroad in energy services and in the generation, trading, and sale of electricity and heat, and in gas sales and commodities trading. Outside Czechia, CEZ Group operates mainly in Germany, Poland, and Slovakia, as well as in France and Italy.

CEZ Group / CEZ Group's Profile

CEZ Group's Vision and Corporate Responsibility

CEZ Group's long-term vision is to bring innovations for addressing energy needs and help improve the quality of life. In the area of generation, CEZ Group's strategy emphasizes the transformation of its generation portfolio to a low-emission one and the achievement of carbon neutrality. As part of the accelerated VISIOn 2030-Clean Energy of Tomorrow strategy, CEZ Group has committed to ending coal-fired heat generation by 2030, to substantially reducing coal-fired power generation, and to be completely carbon neutral by 2050.

In line with its ambitious carbon-free targets, it envisages building 6,000 mW of new renewable energy sources by 2030 and is preparing a tender for the construction of at least one new nuclear unit in cooperation with the Czech state.

In distribution and sales, the ongoing objective is to provide the most advantageous energy solutions and the best customer experience on the market. CEZ Group is therefore investing significantly in the modernization and digitalization of distribution networks and building its position as a reliable leading supplier of energy and comprehensive energy services, helping to decarbonize industry in Czechia and Central Europe.

CEZ Group's business activities are governed by strict ethical standards that include responsible behavior toward employees, society, and the environment. As part of its business activities, it adheres to the principles of sustainable development with an emphasis on the area of ESG (Environmental, Social, Governance), which is an integral part of its management. CEZ Group supports energy efficiency, promotes new technologies, creates an environment for professional growth of employees and equal opportunities, and focuses on investments in modern technologies, science, and research. Donations are an integral part of social responsibility: since 2002, the ČEZ Foundation has been one of the largest corporate foundations in Czechia.

The corporate culture emphasizes safety, continuous improvement of internal efficiency, and encouragement of innovation to increase CEZ Group's value.