CEZ a s : Group - Half-year Financial Report 2022

CEZ GROUP

HALF-YEAR FINANCIAL REPORT 2022

CEZ Group Profile

CEZ Group is a stable energy group, one of the largest economic entities in Czechia and Central Europe, employing more than 27,000 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. ČEZ's market capitalization was CZK 571 bn as of June 30, 2022.

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, raw material mining, and especially the provision of complex energy services, which belong among the dynamically growing business areas together with electromobility.

CEZ Group's total operating revenues amounted to CZK 130.5 bn in H1 2022. The importance of individual activities for the total value for shareholders is expressed as their share in EBITDA:

The Share of CEZ Group's Main Activities in EBITDA H1 2022 (in %)

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, 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, Italy, and Austria.

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 climate neutrality. As part of the accelerated VISION 2030-Clean Energy for Tomorrow strategy, CEZ Group has committed to ending coal-fired heat generation and to substantially reducing coal-fired power generation by 2030. Subsequently, it aims to be completely climate neutral by 2040. In line with its ambitious carbon-free targets, it envisages building 6,000 MW of new renewable energy sources by 2030 and a tender is underway 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

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supplier of energy and comprehensive energy services, helping to achieve energy savings 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 equal opportunities and an environment for the professional growth of employees, and focuses on investments in modern technologies, science, and research. Donorship is an integral part of social responsibility, and the ČEZ Foundation has been one of the largest corporate foundations in Czechia since 2002.

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

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Table of Contents:
Statutory Declaration of Persons Responsible for the CEZ Group Half-Year
Financial Report 2022..........................................................................................................................	4
1. Company Introduction and Highlights
	Overview of Selected Indicators ....................................................................................................	5
	Shares ...........................................................................................................................................	7
	Selected Events.............................................................................................................................	9
	Developments in Relevant Energy Markets ................................................................................	11
2. Corporate Governance
	Shareholders' Meeting of ČEZ, a. s. ...........................................................................................	13
	Changes in ČEZ, a. s., Governance Bodies................................................................................	14
	Strategy .......................................................................................................................................	16
	Approach to Climate Protection...................................................................................................	19
	Safety and Security .....................................................................................................................	21
3.	CEZ Group Activities
	CEZ Group's Financial Performance .........................................................................................	23
	Capital Expenditure ....................................................................................................................	31
	Balance and Generation ............................................................................................................	33
	CEZ Group Operations ..............................................................................................................	38
	GENERATION Segment ............................................................................................................	40
	MINING Segment .......................................................................................................................	47
	DISTRIBUTION Segment ..........................................................................................................	48
	SALES Segment ........................................................................................................................	50
	Environment ...............................................................................................................................	55
	Research, Development, and Innovation ...................................................................................	56
	Impact of the Conflict in Ukraine and COVID-19 on CEZ Group's
	Activities.....................................................................................................................................	58
	Litigation and Other Proceedings...............................................................................................	61
4.	Other Information
	CEZ Group Consolidated Unit as of June 30, 2022..................................................................	68
	Developments in Sectoral Regulation and Legislation .............................................................	71
	Changes in Ownership Interests...............................................................................................	74
	Basic Organization Chart of ČEZ, a. s., as at August 1, 2022..................................................	76
	Information for Shareholders and Investors..............................................................................	77
	Definitions and Calculations of Indicators Unspecified in IFRS ................................................	79
5.	Financial Part
	Interim Consolidated Financial Statements (Condensed Set of Financial Statements) ...........	81
6.	Identification of ČEZ, a. s. ............................................................................................	105

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