CONFERENCE CALL ON CEZ GROUP FINANCIAL RESULTS IN Q1 2014 Non-audited consolidated results prepared in accordance with the International Financial Reporting Standards (IFRS) (Quarterly report pursuant to Section 119a(4) of the Capital Markets Act) Prague, May 13, 2014
AGENDA Financial highlights and key events in CEZ Group in Q1 2014 Martin Novák, Chief Financial Officer Financial results Martin Novák, Chief Financial Officer Trading position of CEZ Group Pavel Cyrani, Chief Sales and Strategy Officer 1
FINANCIAL HIGHLIGHTS OF Q1 2014 EBITDA CZK 21.2 bn EBIT CZK 14.4 bn Net income CZK 9.9 bn Operating cash flow CZK 15.6 bn Rating agencies confirmed their previous ratings: Mar 27 Moody s: A2, negative outlook Apr 16 Standard & Poor s: A-, stable outlook The share price of ČEZ, a. s. has risen by 14% since the beginning of the year, being CZK 599 on May 9, 2014 2
WE EXPECT EBITDA OF CZK 70.5 BN NET INCOME OF CZK 27.5 BN* CZK bn 100 80 60 40 20 0 CZK bn 40 30 20 10 0 CZK bn 80 60 40 20 81.9 70.5 2013 2014 E 35.2 EBITDA NET INCOME 27.5 2013 2014 E OPERATING 72.2 CASH FLOW 64.1 * Selected year-on-year negative effects: Trend of declining electricity prices Extraordinary income from trading in emission allowances in 2013 (CER Gate) Worsened national regulatory conditions in Southeastern Europe Extraordinary revenues in 2013 (proceeds from the sale of the Chvaletice Power Plant, exclusion of CEZ Shpërndarje from consolidation) Selected year-on-year positive effects: savings of fixed operating expenses Selected prediction risks: Developments in regulatory and legislative conditions for the energy sector in Southeastern Europe Delayed completion of coal-fired plant renewals and constructions in the Czech Republic 0 2013 2014 E *The value does not include impairments of fixed assets whose impact on yearly results cannot be quantified at the moment. The impact will reflect development of European regulation and of energy market as well as internal measures of CEZ Group in 2014. Financial values for 2013 reflect the current recalculation of previous periods in accordance with the IFRS (especially 3 reclassification of CEZ Energo from subsidiary to joint venture).
UNCERTAINTY IN THE ENERGY SECTOR CONTINUES Reform of EU ETS and setting of rules of European energy market remain in the center of the attention of CEZ Group. In March, the European Council postponed its decision on mandatory targets for 2030 until the end of 2014. European parliament elections, limited mandate of outgoing European Commission and priority of setting EU s stance on development in Ukraine are the reasons. The Commission's climate package legislation proposal can be expected in H1 2015 at the earliest. For European energy companies, this means prolonging a situation in which it is virtually impossible to make or plan any major investments. Representatives of Europe s leading energy companies met up with Czech Prime Minister on April 8. The Czech government and the energy companies take similar positions on major issues: A mandatory, complementary RES share target may pose a threat to the security of electricity supplies A technology-neutral approach and free competition are preferred Renewables should no longer be supported artificially but must compete on the free market; support should be limited to research in the area of new technologies only 4 RES Renewable energy sources EU ETS European Union Emissions Trading System
REQUEST FOR PROPOSAL PROCEEDINGS TO CHOOSE THE EPC SUPPLIER, WITHIN THE PROJECT OF CONSTRUCTION OF TEMELIN NUCLEAR POWER PLANT S NEW UNITS, WERE CANCELED Preparations for the authorization and licensing process continue (Ministry of the Environment, State Office for Nuclear Safety) Decision on the project execution date has been postponed until these two conditions are met: Accordance with the Czech Republic s final approved national energy strategy is confirmed Elementary requirements for achieving a positive return on invested funds are satisfied The requirements for the project s feasibility are not fulfilled at the moment. On Apr 9, the Czech government adopted a resolution saying it is not planning to provide any guarantee or stabilization mechanism for the construction of low-carbon facilities at the moment. It also declared interest in further development of nuclear energy in the Czech Rep., promising to prepare a comprehensive plan for this area by the end of 2014. On Apr 10, 2014, CEZ cancelled the RFP proceedings for new units construction (EPC contractor selection) and, at the same time, confirmed that preparation of the project as such is going forward. 5 EPC Engineering Procurement Construction
WE GRADUALLY IMPLEMENT OUR ADOPTED STRATEGY THROUGH SEVEN STRATEGIC PROGRAMS: Program Program goals 1. We protect the value of existing business 2. We develop growth opportunities New nuclear sources Long-term operation of Dukovany NPP Stabilization abroad Performance and Entrepreneurship Renewable sources Customer orientation New Energy Ensure conditions for financial feasibility and financing ability of the Temelín Units 3 & 4 project and possibly other nuclear projects Extend operations of the Dukovany Nuclear Power Plant beyond 2025 while ensuring the required rate of return. Optimize the capital structure of each company Reduce exposure on unpromising markets and increase focus on countries with better political and economic stability Enhance entrepreneurship and financial management while achieving sufficient savings Define a staff development program to improve the Group s performance and value Optimize the existing portfolio by divesting selected projects or shares Develop, build, and operate a RES portfolio with an attractive IRR Improve customer experience across CEZ Group Use new products to capitalize on the existing customer base Improve brand perception Develop new business activities mainly in distributed and "small" energy while focusing on the end customer 6 RES Renewable Energy Sources IRR Internal Rate of Return
CZECH REPUBLIC: SELECTED EVENTS IN THE PAST QUARTER 1. WE PROTECT THE VALUE OF EXISTING BUSINESS Nuclear Power Plants Dukovany As part of LTO six partial projects were finished. Their aim was to strengthen supporting structures, to increase seismic resistance and strengthen cooling systems Mar 13, the first Station Blackout drill ever at all 4 units confirmed the power plant s readiness Mar 24 27, labor inspection audit, the power plant confirmed its Safe Enterprise status Conventional Power Plants Work on the ecologization of generating units at the Počerady, Dětmarovice and Mělník I power plants was started (reduction of nitrogen oxides emissions up to 60%) Successful pressure test of Unit 23 at the Prunéřov II Power Plant (3 x 250 MW) under the comprehensive refurbishment project First boiler ignition at the Ledvice new plant (660 MW) on Mar 28 Second part of comprehensive testing, including work on gas turbine commissioning, is under way at the Počerady CCGT plant Hydro power plants Kamýk Overhaul continues by fitting the stator of generator TG1; the innovations increase efficiency by 5.5% Generators in the Kamýk hydro plant s turbine building Heating ČEZ Teplárenská The central heating system for Ledvice Town became Project of the Year 2013 reducing the volume of dust by 7.5 t/year End-user prices of heat decreased by up to 6% after takeover of Teplo Klášterec 7 LTO Long Term Operation
1. WE PROTECT THE VALUE OF EXISTING BUSINESS WE CONTINUE IN IMPLEMENTATION OF INTERNAL SAVINGS AND EXPANDING SHARED SERVICES CENTERS WITH ENGINEERING CAPACITIES Consolidation of Engineering Capacities major cost and staff cuts The project goal is reduction of capacity of engineering functions and their adjustment to internal customers requirements and to market situation Over the next 4 years, we expect cumulative cost savings of more than CZK 1 bn. Shared Services Centre realized benefits are further increasing CEZ Customer Services Serving external customers Benefit of over CZK 190 million per year CEZ Distribution Services Providing grid services Benefit of over CZK 230 million per year CEZ Corporate Services Facility Management, Accounting, and HR Benefit of over CZK 250 million per year The annual cost savings of these companies have already exceeded CZK 670 m. 8
THE CUSTOMER COMES FIRST 2. WE DEVELOP GROWTH OPPORTUNITIES The Customer Orientation strategic program aims to improve customer satisfaction and experience when handling all customer requirements. Based on customer feedback, we are preparing 28 new innovations in products and services. The goal is to let customers have their requests attended to in a more comfortable, easier and faster manner. We will introduce most steps as early as in the fall of 2014, for example: New, customer-friendly products New functionalities of the ČEZ ON-LINE self-care application Better ways of informing about planned outages Free consulting on energy-related legislation Simpler handling of all customer requests in distribution, faster connection of new customers More comfort when waiting at Customer Centers 9
1. WE PROTECT THE VALUE OF EXISTING BUSINESS ABROAD: ROMANIAN STATE BODIES PAID DEBTS AMOUNTING TO CZK 0.7 BN. WE VE GOT THE EU S SUPPORT IN BULGARIA ROMANIA All the debts of the Romanian Railways (CFR) amounting to over CZK 0.5 bn have been repaid. In addition in April national post office s debts of CZK 0.2 bn was paid. In March, law which modifies support for renewable energy sources (including the method of green certificate assignment) came into force, affecting the Fântânele and Cogealac wind farms came into force. BULGARIA proceedings on revocation of the licenses of sale companies CEZ Electro, Energo-Pro and EVN are ongoing. CEZ Group is convinced there is no reason for license revocation. European Commission, acting through Energy Commissioner G. Oettinger, expressed concern over the initiated proceedings and called on Bulgaria again to respect the energy regulatory office s independence and EU rules in the energy sector. 10
ABROAD: EGEMER CCGT PLANT STARTS PILOT OPERATION 2. WE DEVELOP GROWTH OPPORTUNITIES TURKEY Launch of testing of Egemer CCGT plant with capacity of 872 MW in south-eastern coast of Turkey We expect the plant to be put into full operation in the summer of 2014, as originally intended. On April 12, a permit to sell electricity during the testing phase was obtained thanks to successful tests on turbine 1 11
WE FURTHER STREAMLINED AND SLIMMED DOWN CEZ HEADQUARTERS ORGANIZATIONAL STRUCTURE PERFORMANCE AND ENTREPRENEURSHIP CEO & Chairman of the Board of Directors Daniel Beneš The organizational changes aim to distribute responsibilities for divisions and management areas evenly among all seven members of the BoD, preventing management overlaps and promoting the development of new activities. Finance Martin Novák Sales and Strategy Pavel Cyrani Production Ladislav Štěpánek Foreign Assets Tomáš Pleskač Selected changes in responsibilities of members of the Board of Directors of ČEZ, a. s. Administration Michaela Chaloupková External Relations and Regulation Ivo Hlaváč Martin Novák in addition to responsibility for financial management and management of supporting services, he is now in charge of mergers and acquisitions, which are now managed in synergy with equity holdings (Jan 1, 2014) Pavel Cyrani in charge of the newly combined Sales and Strategy division since May 1, 2014, newly assuming additional responsibility for the management of ČEZ Prodej & ČEZ Zákaznické služby. He will be responsible for operations management and development support at ŠKODA PRAHA from Jul 1, 2014 Ladislav Štěpánek in addition to responsibility for generation, he became responsible for operations management of the newly established subsidiary ČEZ Inženýring on Apr 1, 2014, will take over most of the agenda of the dissolved Investments division on Jul 1, 2014 and will be responsible for operations management during the transformation and optimization of ŠKODA PRAHA Invest Tomáš Pleskač will fully focus on business activities abroad from May 1, 2014; the Distribution and Foreign Assets division turns into Foreign Assets Michaela Chaloupková in addition to procurement activities of CEZ Group, she is now in charge of Human Resources (Jan 1, 2014) Ivo Hlaváč in charge of the newly formed External Relations and Regulation division (May 1, 2014); responsible for operations management of ČEZ Distribuce and ČEZ Distribuční služby (May 1, 2014) 12
AGENDA Financial highlights and key events in CEZ Group in Q1 2014 Martin Novák, Chief Financial Officer Financial results Martin Novák, Chief Financial Officer Trading position of CEZ Group Pavel Cyrani, Chief Sales and Strategy Officer 13
CEZ GROUP FINANCIAL RESULTS (CZK bn) Q1 2013 Q1 2014 Change % Revenues 59.9 53.2-6.7-11% EBITDA 28.3 21.2-7.1-25% Net income 17.8 9.9-7.9-44% Operating CF 16.4 15.6-0.8-5% CAPEX 8.7 5.4-3.3-38% Net debt * 152.9 143.5-9.4-6% Q1 2013 Q1 2014 Change % Installed capacity * GW 15.8 15.2-0.6-4% Generation of electricity TWh 18.5 17.5-1.0-6% Electricity distribution to end customers TWh 13.5 13.0-0.5-4% Electricity sales to end customers TWh 10.4 9.6-0.8-7% Sales of natural gas to end customers TWh 2.5 2.2-0.3-13% Sales of heat 000 TJ 11.0 8.7-2.3-21% Number of employees * 000 s 27.1 26.6-0.5-2% Financial values for 2013 in the whole presentation reflect the current recalculation of previous periods in accordance with the IFRS (especially reclassification of CEZ Energo from subsidiary to joint venture). 14 * as of the last date of the period
DRIVERS OF YEAR-ON-YEAR CHANGE IN NET INCOME 20 CZK bn 18 16 14 12 10 8 17.8 7.1 0.2 2.2 1.2 6 4 CZK -7.9 bn -44% 9.9 2 0 Net income Q1 2013 EBITDA Depreciation, amortization and impairments* Financial and other income (expenses) Income taxes Net income Q1 2014 15 * Including profit/loss from sale of tangible and intangible fixed assets
23.5 22.3 21.9 21.6 KEY DRIVERS OF YEAR-ON-YEAR CHANGE OF EBITDA 30 bn CZK 25 20 4.8 1.2 0.4 0.3 0.3 0.1 15 28.3 10 5 CZK -7.1 bn -25% 21.3 21.2 21.2 0 EBITDA 1-3/2013 Power Production & Trading Czech Republic Power Production Romania Sale CE Power Production & Trading Czech Rep. (CZK -4.8 bn) Lower achieved prices of electricity (CZK -2.2 bn) Lower production volume (CZK -1.1 bn), especially at hydro plants due to lower rates of flow in 2014 Extraordinary income from derivative operations with emission allowances (CER Gate) in 2013 (CZK -0.7 bn) Power Production Romania (CZK -1.2 bn) Effect of lower market price, postponement of allocation and suspension of assignment of green certificates Distribution Czech Republic Mining Other EBITDA 1-3/2014 Sales Central Europe (CZK -0.4 bn) Effect of above-average temperatures in the quarter Distribution CZ (CZK -0.3 bn) Effect of correction factors from RESs and from reserved capacity Mining (CZK -0.3 bn) Volumetric effect of above-average temperatures in the quarter 16
23.8 22.4 21.7 21.7 21.5 YEAR-ON-YEAR CHANGE OF EBITDA BY SEGMENT 30 CZK bn 25 20 4.5 1.4 0.7 0.1 0.3 0.3 15 28.3 10 CZK -7.1 bn -25% 21.2 21.2 5 0 EBITDA Q1 2013 Power Production & Trading CE Power Production & Trading SEE Distribution & Sale CE Distribution & Sale SEE Mining CE Other CE EBITDA Q1 2014 17 CE Central Europe SEE Southeastern Europe
EBITDA BY SEGMENT: POWER PRODUCTION AND TRADING CENTRAL EUROPE CZK bn Q1 2013 Q1 2014 Change % Czech Republic 17.2 12.4-4.8-28% Poland 0.3 0.6 0.3 +88% Total EBITDA 17.5 13.0-4.5-26% Czech Republic (CZK -4.8 bn) Year-on-year drop in achieved electricity prices (CZK -2.2 bn) Lower production volume (CZK -1.1 bn), especially at hydro plants due to lower rates of flow in 2014 Extraordinary income from derivative operations with emission allowances (CER Gate) in 2013 (CZK -0.7 bn) Lower revenue from heat due to milder winter (CZK -0.4 bn) Consolidation adjustments (CZK -0.4 bn) - especially in relation to allowance trading in 2013 Poland (CZK +0.3 bn) Higher revenue from color certificates due their increased market prices 18
EBITDA BY SEGMENT: POWER PRODUCTION AND TRADING SOUTHEASTERN EUROPE CZK bn Q1 2013 Q1 2014 Change % Bulgaria 0.1-0.1-0.2 - Romania 1.4 0.2-1.2-84% Total EBITDA 1.5 0.1-1.4-91% Bulgaria (CZK -0.2 bn) Decrease of regulated purchase price of quota production and less cold reserve availability sold Romania (CZK -1.2 bn) Postponement of assignment of second certificate for both wind farms since July 2013, suspension of assignment of first certificate for Fântânele Vest since November 2013 due to notification delay on the part of the European Commission (CZK -0.7 bn) Lower market price of green certificates (CZK -0.3 bn) Lower volume of production (CZK -0.2 bn) 19
EBITDA BY SEGMENT: DISTRIBUTION AND SALE CENTRAL EUROPE CZK bn Q1 2013 Q1 2014 Change % Distribution 4.2 3.9-0.3-7% Sale 1.3 0.9-0.4-35% Total EBITDA 5.5 4.8-0.7-14% Distribution CZ (CZK -0.3 bn) Effect of correction factors from RESs and from reserved capacity (CZK -0.4 bn) Effect of y-o-y reduction in allowed revenues by ERO (CZK -0.1 bn) Reduction in fixed operating costs thanks mostly to successful execution of the SSC project efficient provision of shared services in CEZ Group (CZK +0.2 bn) Sales (CZK -0.4 bn) Lower volumes of gas and electricity supplied due to above-average temperatures in Q1 2014 (CZK -0.2 bn) Gas list price reduced by 10% since May 1, 2013 (CZK -0.1 bn) Selling price of electricity to cover losses in the distribution grid lowered by ERO decision (CZK -0.1 bn) 20 ERO Energy Regulatory Office
EBITDA BY SEGMENT: DISTRIBUTION AND SALE SOUTHEASTERN EUROPE CZK bn Q1 2013 Q1 2014 Change % Bulgaria 0.3 0.2-0.1-41% Romania 0.4 0.6 +0.2 +75% Total EBITDA 0.7 0.8 +0.1 +29% Bulgaria (CZK -0.1 bn) Lower margin on distributed electricity due to a negative price decision from Dec 30, 2013 (CZK -0.1 bn) Romania (CZK +0.2 bn) Extraordinary earnings in 2014 related to payment of debts by Romanian state railways (CZK +0.3 bn) Additional costs associated with newly introduced construction tax (CZK -0.1 bn) 21
EBITDA BY SEGMENT: MINING CENTRAL EUROPE, OTHER CENTRAL EUROPE AND OTHER SOUTHEASTERN EUROPE EBITDA (CZK bn) Q1 2013 Q1 2014 Change % Mining CE 1.5 1.2-0.3-18% Other CE 1.5 1.2-0.3-23% Other SEE 0.1 0.1 0.0 +49% Mining Central Europe (CZK -0.3 bn) Lower revenue related to worse sales of coal due to above-average temperatures in Q1 2014 Other CE (CZK -0.3 bn) Especially CEZ Distribuční služby (CZK -0.2 bn) and ŠKODA PRAHA Invest (CZK -0.1 bn) 22 CE Central Europe SEE Southeast Europe
OTHER INCOME (EXPENSES) (CZK bn) Q1 2013 Q1 2014 Change % EBITDA 28.3 21.2-7.1-25% Depreciation, amortization and impairments -7.0-6.8 +0.2 +2% Financial and other income (expenses) 0.2-2.0-2.2 - Interest income (expenses) -0.8-0.9-0.1-8% Interest on nuclear and other provisions -0.5-0.5 0.0-2% Income (expenses) from investments 2.1-0.1-2.2 - Other income (expenses) -0.6-0.5 +0.1 +17% Income taxes -3.7-2.5 +1.2 +33% Net income 17.8 9.9-7.9-44% Depreciation, amortization and impairments* (CZK +0.2 bn) Reduced depreciation and amortization due to sale of Chvaletice Power Plant in 2013 (CZK +0.1 bn) Reduced depreciation and amortization in 2014 due to partial impairment of assets in Bulgaria in 2013 (CZK +0.1 bn) Interest income (expenses) (CZK -0.1 bn) Decrease in interest income related to expiration of MOL share option and issue of convertible bond (CZK -0.2 bn) Decrease in interest expense, especially in relation to newly issued bonds with a lower coupon (CZK +0.1 bn) Income (expenses) from investments (CZK -2.2 bn) Extraordinary one-off impact of excluding CEZ Shpërndarje from the consolidated CEZ Group in January 2013 (CZK -1.8 bn) Reduced income of Turkish associates mostly due to lower power generation at hydro plants and weakened Turkish lira (CZK -0.4 bn) Other income (expenses) (CZK +0.1 bn) Y-o-y difference in revaluation of MOL options (CZK +0.5 bn), impact of consumption of emission allowances in 2013 burdened by gift tax (CZK +0.3 bn) Other (CZK -0.7 bn) in particular financial derivatives and other exchange rate gains/losses Income tax (CZK +1.2 bn) Lower tax reflects decreased income and effect of sale of Chvaletice Power Plant in 2013 23 * Including profit/loss from sale of tangible and intangible fixed assets
40.7 35.3 35.3 35.3 36.0 CASH FLOW 50 40 30 bn CZK 18.5 operating investing financing 0.0 0.8 2.9 5.4 0.1 20 10 25.0 25.0 CZK +10.9 bn +44% 35.9 0 Cash and cash equivalents as of 12/31/2013 Income after adjustments, income taxes included Changes in working capital Investments in property, plant and equipment * Financial investments and other investing cash flow items ** Loans and repayments Other Cash and cash equivalents as of 3/31/2014 Cash flows provided by operating activities (CZK +15.6 bn) Income after adjustments (CZK +18.5 bn): Earnings before tax (CZK +12.4 bn), depreciation and amortization of nuclear fuel (CZK +7.7 bn), net interest balance excl. capitalization (CZK +0.8 bn), income tax paid (CZK -2.0 bn), other (CZK -0.4 bn) Changes in working capital (CZK -2.9 bn): Growth of liquid securities (CZK -3.0 bn), drop in balance of payables and receivables from derivatives incl. options (CZK +1.6 bn), drop in emission allowances and inventories of fossil fuels incl. materials (CZK +1.5 bn), other (CZK -3.0 bn) in particular growth in balance of trade payables and receivables incl. advances and accruals Cash flows used in investing activities (CZK -5.4 bn) Investments in property, plant and equipment CAPEX see details in Annex Cash flows provided by financing activities incl. exchange rate differences (CZK +0.7 bn) Balance of loans and repayments (CZK +0.8 bn) Other (CZK -0.1 bn) 24 *) CAPEX **) Including the balance of loans granted, divestments and change of restricted funds
CEZ GROUP MAINTAINS A STRONG LIQUIDITY POSITION Utilisation of short-term lines (as of March 31, 2014) CZK 0.1 bn CZK 0.5 bn Available credit facilities nečerpáno Committed, komitované not drawn The CEZ Group has access to CZK 28.9 bn in committed credit facilities, using just CZK 0.1 bn as of Mar 31, 2014 CZK 28.8 bn Bond maturity profile (as of Mar 31, 2014) čerpáno Committed, komitované drawn čerpáno Uncommitted, nekomitované drawn Non-committed credit facilities are used primarily. Committed facilities are kept as a reserve for covering unexpected needs. CZK bn 30 25 20 15 10 5 A 3.5-year issue of bonds convertible into MOL shares was issued on February 4, 2014 (0%, EUR 470.2 m) On April 10, 2014, an early buyback of bonds worth face value EUR 300 m in total was conducted (buying back EUR 139.8 m worth of the 2015 issue and EUR 160.2 m worth of the 2016 issue). 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2028 2030 2032 2038 2039 2042 2047 25 CZK EUR JPY USD
THE PROPOSED ČEZ, A. S. DIVIDEND OF CZK 40 PER SHARE WILL BE VOTED ON BY THE GENERAL MEETING TO BE HELD ON JUNE 27, 2014 60% 56% 55% 57% 59% 54% 61% 50% 40% 49% 40% 41% 43% 50% 40 50 53 50 45 40 40 30% 32% 20% 16% 16% 15 20 10% 0% 8 9 4.5 4,5 2 2.5 2,5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 26 Dividend per share (CZK) Payout ratio The pay-out ratio specifies the ratio of dividends to CEZ Group s consolidated net income in a given year
AGENDA Financial highlights and key events in CEZ Group in Q1 2014 Martin Novák, Chief Financial Officer Financial results Martin Novák, Chief Financial Officer Trading position of CEZ Group Pavel Cyrani, Chief Sales and Strategy Officer 27
ELECTRICITY GENERATION AND WHOLESALE MARKET REFLECT THE DEVELOPMENT OF ENERGY REGULATION IN EUROPE ELECTRICITY CONSUMPTION Based on preliminary data (ČEPS data, ČEZ & EGÚ Brno estimates), electricity consumption decreased by approx. 4% y-o-y in Czech Rep. in Q1 2014; the most important effect was weather with above-average temperatures. Temperature-adjusted electricity consumption indicates stagnation. WHOLESALE MARKET Wholesale electricity prices on the European market continue to decrease slightly; at the moment, electricity price at EEX is around EUR 34/MWh (CAL 15 2015 baseload) On Mar 12, 2014, the process of backloading (temporary removal of a portion of allowances from the emission trading system) was started; a total of 400 million tons of emission allowances should be removed from the system during 2014; the EUA price on the market stagnates at around EUR 5/t CEZ GROUP GENERATION For the whole of 2014, we expect nuclear plant production to be over 30 TWh again and the production of Czech coal-fired plants to be at the same level as in 2013 in spite of the divestment of Chvaletice Power Plant Abroad we expect a slight increase in production due to higher demand for supplies from our coalfired plant in Varna, Bulgaria In Romania, there was a sharp drop in green certificate prices from around RON 200/pc in December 2013 (EUR 44/pc) to around RON 131/pc (EUR 29/pc) in March 2014, which is the statutory minimum permissible price of green certificates; at the same time, the quota for electricity generation from RESs in 2014 dropped to 11.1% (from the previous statutory quota of 15%) 28
CEZ CONTINUES HEDGING ITS REVENUES FROM SALES OF ELECTRICITY IN THE MEDIUM TERM 1. WE PROTECT THE VALUE OF EXISTING BUSINESS Share of hedged production from CEZ* facilities as of May 1, 2014 (100% corresponds to 57 59 TWh) 100% 75% 50% 25% 0% ~4% ~73% ~7% ~37% ~3% ~13% ~0% ~10% Hedged volume from Feb 15, 2014 to May 1, 2014 Hedged volume as of Feb 15, 2014 Transaction currency hedging Natural currency hedging debts in EUR, investment and other expenses and costs in EUR ~0% ~7% 2015 2016 2017 2018 2019 2020 2021 ~0% ~8% ~0% ~1% Total hedged (of production) At price (EUR/MWh, BL equivalent) ~ 77% ~ 44% ~ 16% ~ 10% ~ 8% ~ 7% ~ 1% 40.5 38.0 40.0 43.5 45.5 47.0 40.0 29 Source: CEZ CEZ* = ČEZ, a. s., including spun-off coal-fired power plants in Počerady and Dětmarovice
WE DEVELOP GROWTH OPPORTUNITIES FOCUSING ON END CUSTOMERS Program Program goals 2. WE DEVELOP GROWTH OPPORTUNITIES Customer Orientation New Energy Improve customer experience across CEZ Group Use new products to capitalise on the existing customer base Improve brand perception Develop new business activities mainly in distributed and "small" energy while focusing on the end customer We offer products, services and comprehensive energy solutions to our customers: ČEZ Prodej Electricity as the basic offer for all types of customers. New products and selling methods stabilize the market share despite pressure from new players Natural gas CEZ has become the largest alternative supplier Mobile from CEZ newly offered service with 60,000 customers after six months from its launch ČEZ Energo Services in highly efficient combined heat and power production Construction and operation of small CHP units (up to 5 MW e ) market leader in the Czech Rep. ČEZ Energetické služby Energy savings services (EPC contracts) Operation of power generating units Operation and reconstruction of public lighting Energy control center services; servicing power facilities We improve our services and behavior towards customers across all sectors important for them: handling customer requests quickly, providing communication channels, resolving technical issues 30
ČEZ PRODEJ STABILIZES THE PORTFOLIO OF CUSTOMERS IT DELIVERS ELECTRICITY TO ČEZ PRODEJ STABILIZES ITS CUSTOMER PORTFOLIO IN THE HOUSEHOLDS SEGMENT 2. WE DEVELOP GROWTH OPPORTUNITIES In 2013, the number of connection points at which customers changed their electricity supplier dropped by 21%. The trend proved to keep on in Q1. Thanks to a successful retention policy, the share of ČEZ Prodej customers in the total number of customers that changed their supplier dropped y-o-y. The share of lost ČEZ Prodej customers (households) dropped by 17% ČEZ PRODEJ RETAINS A STABLE 28% MARKET SHARE IN THE CORPORATE CUSTOMERS SEGMENT Despite continued fierce competition, the market share has been stabilized thanks to, in particular: Transition to consultative selling Ongoing expansion of the offer of non-energy products and complementary services: Electronic billing, ČEZ Online, SMS Info, SMS Order, Innovative offer of energy products responding to our customers current needs with a combination of options: Progressive purchasing (customers spread their demand over multiple periods) SPOT daily/hourly evaluation (customers are allowed to respond to momentary market swings) Purchase with a price GUARANTEE option (allowed fixation of the upper price limit) 31
ČEZ PRODEJ THE LARGEST ALTERNATIVE SUPPLIER OF NATURAL GAS IN THE CZECH REPUBLIC INCREASES ITS MARKET SHARE 2. WE DEVELOP GROWTH OPPORTUNITIES For five years ČEZ Prodej has been increasing its market shares in the households and retail customers segments of the natural gas market. ČEZ Prodej is the largest alternative supplier of natural gas in terms of the number of connection points. 15.0% 12.5% 10.0% 7.5% 5.0% 2.5% 0.0% ČEZ Prodej s market share in the households and retail customers segments 0.3% 0.0% 0.3% 2.9% 2.5% 7.0% 4.6% 10.2% 5.6% 11.0% 6.1% 2009 2010 2011 2012 2013 2014 E households retail 32
ČEZ PRODEJ: MOBILE FROM CEZ CELEBRATES SUCCESSFUL SIX MONTHS WITH MORE THAN 60,000 CUSTOMERS 2. WE DEVELOP GROWTH OPPORTUNITIES For most customers, Mobile from CEZ is their primary SIM card (77%). The most popular plan is Pay As You Call. Customers gradually extend it with additional call and data packages. Customers satisfaction is above average and they willingly recommend the service to people around them (Net Promoter Score*=72). The current promo campaign is Call for CZK 1 with the Calling Sometimes package (when activating the package from April through June 2014). Number of customers 60,000 40,000 20,000 62,000 customers 0, 33 * % indicator measuring customer loyalty/satisfaction (the percentage of promoters minus the percentage of detractors)
ČEZ ENERGO: A SUCCESSFUL EXAMPLE OF CUSTOMER-ORIENTED DISTRIBUTED ENERGY COMPANY 2. WE DEVELOP GROWTH OPPORTUNITIES ČEZ Energo customers Municipal central heat supply systems Industrial enterprises Department stores, shopping malls Schools, hotels, guesthouses Swimming pools, spas, sports centres Hospitals, long-term care and aftercare facilities Retirement homes Local municipal heating plants Světlá nad Sázavou Boiler Unit Bradlo, Na Bradle St. Capacity: 2,036 kw e, 8,454 kw t ČEZ Energo s objective is to operate a centrally managed portfolio of small CHP units up to 5 MW e with a total capacity of 200 MW e. 12.0 Installed capacity 22.3 34.3 MW e 54.7 2011 2012 2013 2014 E More than 50% increase in installed capacity in 2013 meant almost 40% increase in EBITDA for ČEZ Energo. 34
ČEZ ENERGETICKÉ SLUŽBY: A SUCCESSFUL EXAMPLE OF ACHIEVING ENERGY SAVINGS 2. WE DEVELOP GROWTH OPPORTUNITIES Main activities of ČEZ Energetické služby Energy savings projects (EPC & EC contracts) Operation and maintenance of power generating units Operation and renovation of lighting Small energy constructions Customers Industrial enterprises Fulnek Renovation and subsequent operation of the town s public lighting Velké Popovice Brewery Reconstruction of pressure air generation and distribution ČEZ Energetické služby s goal is to double its current EBITDA by 2019 and becoming the market leader in energy saving projects. Revenue from energy constructions and projects 143 144 233 285 CZK millions Regions, towns and municipalities 2011 2012 2013 2014 E Energy companies Public administration More than 60% increase in new contracts for energy services in 2013 meant almost 20% increase in EBITDA. 35 EPC - Energy Performance Contracting, EC - Energy Contracting
CUSTOMER ORIENTATION: WE PLEDGE TO PROVIDE HIGH-LEVEL SERVICES 2. WE DEVELOP GROWTH OPPORTUNITIES We published our Customer Code, which guarantees specific, measurable service standards to our customers. ČEZ ON-LINE application Comfortable and quick processing of requests getting an immediate overview of payments, adjusting advances, changing the product line, activating new services, all of that easily from the comfort of one s home 346,010 registered users Availability of Customer and Emergency lines We are available 24/7, an operator welcomes the customer within 30 seconds (for at least 80% of all calls, emergencies excluded) after end of the menu. Q1 2014 more than 82% of the 485,000 calls received was put through within 30 seconds Speed of resolving technical issues Our emergency teams repair most LV faults within 3 hours after reporting. Although the law specifies up to 18 hours, we handle 100% of requests within 12 hours. Q1 2014 6,667 interventions, 86% of them resolved within 3 hours Help in emergencies During the last year s floods, CEZ Group contributed CZK 33 million to households and small businesses affected by the floods to help (similarly to previous years). We are also cooperative when customers deal with unexpected personal troubles. www.cez.cz/kodex 36 LV low voltage
ANNEXES Electricity consumption in the Czech Republic Production in the Czech Republic Production abroad Coal mining Market developments Investments in fixed assets Balance sheet overview Balance of electricity 37
ELECTRICITY CONSUMPTION IN THE CZECH REPUBLIC DROPPED Y-O-Y DUE TO AN EXCEPTIONALLY WARM WINTER IN 2014 Consumption in CZ TWh 16.36* 15.73** -3.9% Consumption development (-3.9%) by segment:** -0.1% wholesale customers -8.8% households -8.3% small businesses Consumption in CZ (temperature adjusted)** TWh 16.10 16.14 +0.2% Q1 2013 Q1 2014 Q1 2013 Q1 2014 5% Monthly year-on-year absolute consumption indices for the Czech Republic (temperature and calendar adjusted)** 2011 2012 2013 2014 3% 0% 3% 5% 38 *Q1 2013 acc. to ERO **Adjusted acc. to ČEZ s model (+ EGÚ Brno, ČEPS)
CZECH REPUBLIC Y-O-Y DROP IN PRODUCTION REFLECTS THE SALE OF CHVALETICE POWER PLANT TWh 20 15 10 5 0 Nuclear power plants (0%) + Shorter outages and increased capacity of Dukovany NPP Longer outages of Temelín NPP Coal-fired power plants (-9%) Sale of Chvaletice Power Plant in September 2013 Renewable sources (-69%) Lower flow rates at hydro plants due to hydrometeorologic conditions 39 17.3-7% 0.8 8.2 0% 8.2 0.2 8.1-69% +39% -9% CCGT Combined cycle gas turbine 16.1 0.2 0.3 7.4 Q1 2013 Q1 2014 Natural gas Renewables Nuclear Hydro-pump storage Coal TWh 70 60 50 40 30 20 10 0 62.3-2% 60.9 0.5-86% 0.1 2.2 1.3-40% 30.7 0% 30.7 0.9 +4% 0.9 28.0 0% 27.9 2013 2014 E Nuclear power plants (0%) + Shorter outages of Dukovany NPP and increased capacity of Temelín NPP Longer planned outages of Temelín NPP Coal-fired power plants (0%) + Commissioning of Ledvice 4 Power Plant (new facility) Decommissioning of 2 units of Ledvice 2 Power Plant and sale of Chvaletice Power Plant Planned outages at Počerady Power Plant due to ecologization Renewable sources (-40%) Lower flow rates at hydro power plants (due to hydrometeorologic conditions) Natural gas (-86%) Lower production at Počerady CCGT
ABROAD WE EXPECT SLIGHT GROWTH IN PRODUCTION TWh TWh 1.5 1.2 +7% 1.3 0.1 +101% 0.3 Bulgaria (Varna coal power plant) 5 4 4.4 +3% 4.5 0.6 +38% 0.8 1 0.4-16% 0.3 Romania (Renewable sources) 3 1.2 0% 1.2 0.5 2 0.7 +5% 0.7 Poland 1 2.6-3% 2.5 0 Q1 2013 Q1 2014 0 2013 2014 E Bulgaria coal-fired Varna plant (+101%) + Higher demand for deliveries to the regulated market, higher quota production Romania RES (-16%) Lower wind farm production due to worse weather conditions, especially in January and February 2014 Poland (+5%) + Increase in electricity generation at the Skawina Power Plant Bulgaria coal-fired Varna plant (+38%) + Higher demand for deliveries to the regulated market, higher quota production Poland (-3%) Lower production at ELCHO Power Plant due to planned overhaul in 2014 40
SEVEROČESKÉ DOLY: LOWER COAL EXTRACTION REFLECTS DECREASE IN DEMAND Coal mining (m tons) Other customers 8 ČEZ* 25 23.7-1% 23.4 6 6.2-8% 5.7 20 6.2 5.7-8% 4 2.1-33% 1.4 15 2 4.1 +6% 4.3 10 5 17.5 +1% 17.7 0 Q1 2013 Q1 2014 0 2013 2014 E Drop in demand due to an extremely warm winter Year-on-year effect of above-average temperatures in Q1 2014 An additional decrease of the 2014 outlook in comparison with the outlook published on Feb 28 is caused by CEZ s decreased demand 41 ČEZ* = ČEZ, a. s. incl. Počerady power plant, Energotrans & Heating Plant Trmice. Chvaletice Power Plant in Q1 2013 only.
MARKET DEVELOPMENTS 700 CZK Development of ČEZ share price EUR / t 10 CO2 allowances / emission rights 600 5 500 400 0 forward 2015 EUR / MWh 50 Electricity USD / t 110 Coal and gas EUR/MWh 55 45 40 85 35 35 30 60 15 forward 2015 coal front month coal forward 2015 gas front month gas forward 2015 42
INVESTMENTS IN FIXED ASSETS (CAPEX) Investments in fixed assets Q1 2014: Conventional facilities Nuclear facilities Electricity distribution Mining Other CZK 5.4 bn CZK 1.4 bn Počerady CCGT plant: The second part of comprehensive testing is under way, including work on steam turbine commissioning. Tests of equipment performed. Preparatory work is under way to include the investment in company s assets. Ledvice new unit: The first stage of brickwork drying and boiler evaporator material heat treatment conducted using provisional burners. Hot tests under way since Mar 13 testing all gas burners and checking the chemical regimen. Bypass operation initiated to create a protective magnetite layer in the evaporator. Prunéřov II comprehensive renewal: Coaling line A assembly finished, commissioning is under way. Turbine generator installation and equipment assembly in progress in the boiler room. Substations are fitted with equipment and device cables are installed. Smoke stack end piece installed in cooling tower 22, installing an absorber and FGD. CZK 1.8 bn Temelín NPP: In Q1, further steps were taken to fulfil the requirements of the National Action Plan for Safety Enhancement related to NPP stress tests after the Fukushima accident. In addition, investments were made in plant upgrade and production efficiency improvement. Dukovany NPP: As with the Temelín NPPs, further steps were taken to enhance safety. Measures are taken to provide alternative power supply, strengthen the reactor buildings and install additional post-accident radiation monitoring systems. Investments are also made in production upgrades, stabilization, safety and efficiency in connection with the planned extension of operation after 2015. Temelín NNPP: The authorization and licensing process was prepared. Decision on the project execution date was postponed because of development in the energy market. On Apr 10, 2014, a decision was made to cancel the EPC contractor tender procedure. Dukovany NNPP: In Q1, preparation of supporting documents for the initiation of the environmental impact assessment process, preliminary landscape character studies and on-site biological surveys were under way. CZK 1.7 bn Czech Republic: CZK 1.1 bn Romania: CZK 0.4 bn Bulgaria: CZK 0.2 bn CZK 0.3 bn Continued implementation of requirements arising from mining procedures at Tušimice and Bílina sites (deliveries, reconstruction and modernization of mining, finishing, and crushing equipment). CZK 0.2 bn 43
BALANCE SHEET OVERVIEW Fixed assets Decrease in tangible fixed assets of CZK -1.1 bn due to depreciation and amortization, partially compensated by investment in unit renewal and construction Nuclear fuel depreciation of CZK -0.8 bn Increase in other fixed assets of CZK +7.9 bn, mainly from reclassifying share in MOL from current to fixed assets (CZK +8.6 bn) 700 600 500 400 300 200 100 0 ASSETS (in CZK bn) 640.4 647.8 154.5 155.8 60.3 68.2 425.6 423.8 As of 12/31/2013 As of 3/31/2014 Current assets Other non-current assets Fixed tangible assets, nuclear fuel and investments Current assets Increase in cash and cash equivalents of CZK +10.9 bn and highly liquid securities of CZK +3.0 bn Increase in receivables from derivatives of CZK +8.2 bn Decrease in net receivables of CZK -20.6 bn, mainly from reclassifying share in MOL from current to fixed assets and decreased trade receivables; other CZK -0.2 bn Equity and long-term liabilities Increase in equity of CZK +10.6 bn: Growth of net income of CZK +9.9 bn; other comprehensive income of CZK +0.7 bn esp. change in fair value of hedging derivatives Increase in long-term liabilities at CZK +11.4 bn: Bonds issued CZK +12.5 bn (incl. CZK +12.3 bn in convertible bonds can be converted into MOL shares on maturity); decrease in other long-term payables of CZK -0.7 bn, especially from derivatives, and long-term bank loans of CZK -0.4 bn 700 600 500 400 300 200 100 0 EQUITY AND LIABILITIES (in CZK bn) 640.4 647.8 119.6 19.2 43.8 195.0 102.4 21.7 43.9 206.4 262.8 273.4 As of 12/31/2013 As of 3/31/2014 Short-term liabilities Deferred tax liability Accumulated provision for nuclear decomissionning and fuel storage Long term liabilities excluding "nuclear" provisions Equity Current liabilities Decrease in current portion of long-term debt (bonds issued) and short-term bank loans of CZK -11.6 bn Decrease in trade payables incl. advances of CZK -7.9 bn in particular due to decrease in liabilities of ČEZ, a. s. (CZK -5.4 bn) Increase in liabilities from derivatives incl. options of CZK +3.1 bn Other CZK -0.8 bn 44
Electricity balance (GWh) Q1 2013 Q1 2014 +/- Electricity procured 16,759 15,651-7% Generated in-house (gross) 18,542 17,456-6% In-house and other consumption, including pumping in pumped-storage plants -1,783-1,805 +1% Sold to end customers -10,383-9,632-7% Sold in the wholesale market (net) -4,790-4,558-5% Sold in the wholesale market -46,727-43,653-7% Purchased in the wholesale market 41,937 39,095-7% Grid losses -1,587-1,461-8% Electricity generation by source (GWh) Q1 2013 Q1 2014 +/- Nuclear 8,148 8,149 +0% Coal and lignite 8,859 8,257-7% Water 903 525-42% Biomass 176 130-26% Solar 16 24 +50% Wind 411 325-21% Natural gas 28 46 +64% Bio gas 1 0 - Total 18,542 17,456-6% Sales of electricity to end customers (GWh) Q1 2013 Q1 2014 +/- Households -4,237-3,822-10% Commercial (low voltage) -1,947-1,727-11% Commercial and industrial (medium and high voltage) -4,199-4,083-3% Sold to end customers -10,383-9,632-7% Distribution of electricity to end customers -13,496-12,969-4%
Electricity balance (GWh) Power Production Distribution Power Production Distribution Q1 2014 & Trading CE & Sale CE & Trading SEE & Sale SEE Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 15,085-7% 0-565 +8% 0-0 - 15,651-7% Generated in-house (gross) 16,868-6% 0-588 +11% 0-0 - 17,456-6% In-house and other consumption, including pumping in pumped-storage plants -1,783 +0% 0 - -23 >200% 0-0 - -1,805 +1% Sold to end customers -18-91% -6,065-6% 0 - -3,550-5% 0 - -9,632-7% Sold in the wholesale market (net) -15,068-6% 6,743-6% -565 +8% 4,333-6% 0 - -4,558-5% Sold in the wholesale market -50,030-7% -903 +48% -565 +8% -390-5% 8,236-4% -43,653-7% Purchased in the wholesale market 34,962-7% 7,646-2% 0-4,723-6% -8,236-4% 39,095-7% Grid losses 0 - -678-4% 0 - -783-11% 0 - -1,461-8% Electricity generation by source (GWh) Power Production Distribution Power Production Distribution Q1 2014 & Trading CE & Sale CE & Trading SEE & Sale SEE Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Nuclear 8,149 +0% 0-0 - 0-0 - 8,149 +0% Coal and lignite 8,013-8% 0-245 +102% 0-0 - 8,257-7% Water 505-44% 0-20 - 0-0 - 525-42% Biomass 130-26% 0-0 - 0-0 - 130-26% Solar 23 +53% 0-1 +0% 0-0 - 24 +50% Wind 3 +0% 0-322 -21% 0-0 - 325-21% Natural gas 45 +61% 0-0 - 0-0 - 46 +64% Bio gas 0-0 - 0-0 - 0-0 - Total 16,868-6% 0-588 +11% 0-0 - 17,456-6% Sales of electricity to end customers (GWh) Power Production Distribution Power Production Distribution Q1 2014 & Trading CE & Sale CE & Trading SEE & Sale SEE Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Households 0 - -2,150-14% 0 - -1,672-4% 0 - -3,822-10% Commercial (low voltage) 0 - -748-15% 0 - -979-9% 0 - -1,727-11% Commercial and industrial (medium and high voltage) -17-92% -3,166 +3% 0 - -899-1% 0 - -4,083-3% Sold to end customers -17-92% -6,064-6% 0 - -3,550-5% 0 - -9,632-7% Distribution of electricity to end customers 0 - -8,746-4% 0 - -4,223-3% 0 - -12,969-4%
Electricity balance (GWh) Q1 2014 Czech Republic Poland Other Central Europe Bulgaria Romania Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Electricity procured 14,448-8% 638 +6% 0-226 +100% 338-17% 0-15,651-7% Generated in-house (gross) 16,143-7% 726 +5% 0-245 +101% 342-16% 0-17,456-6% In-house and other consumption, including pumping in pumped-storage plants -1,695 +1% -88-1% 0 - -19 +111% -4-0 - -1,805 +1% Sold to end customers -5,311-11% -101 +1% -670 +12% -2,684-8% -865 +6% 0 - -9,632-7% Sold in the wholesale market (net) -8,459-6% -536 +6% 669 +12% 2,870-11% 898 +6% 0 - -4,558-5% Sold in the wholesale market -43,224-8% -654 +5% -26-30% -286 +59% -533-29% 1,069-34% -43,653-7% Purchased in the wholesale market 34,765-8% 118 +2% 695 +9% 3,156-8% 1,431-11% -1,069-34% 39,095-7% Grid losses -678-4% 0-0 - -412-7% -371-15% 0 - -1,461-8% Electricity generation by source (GWh) Q1 2014 Czech Republic Poland Other Central Europe Bulgaria Romania Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Nuclear 8,149 +0% 0-0 - 0-0 - 0-8,149 +0% Coal and lignite 7,387-9% 627 +6% 0-245 +102% 0-0 - 8,257-7% Water 503-44% 2 +100% 0-0 - 20-0 - 525-42% Biomass 32-59% 97-2% 0-0 - 0-0 - 130-26% Solar 23 +53% 0-0 - 1 +0% 0-0 - 24 +50% Wind 3 +0% 0-0 - 0-322 -21% 0-325 -21% Natural gas 46 +64% 0-0 - 0-0 - 0-46 +64% Bio gas 0-0 - 0-0 - 0-0 - 0 - Total 16,143-7% 726 +5% 0-246 +102% 342-16% 0-17,456-6% Sales of electricity to end customers (GWh) Q1 2014 Czech Republic Poland Other Central Europe Bulgaria Romania Eliminations CEZ Group GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- GWh +/- Households -2,111-14% 0 - -39 +3% -1,278-2% -393-8% 0 - -3,822-10% Commercial (low voltage) -732-15% 0 - -17-6% -696-14% -283 +8% 0 - -1,727-11% Commercial and industrial (medium and high voltage) -2,468-7% -101 +1% -614 +13% -710-10% -189 +49% 0 - -4,083-3% Sold to end customers -5,311-11% -101 +1% -670 +12% -2,684-8% -865 +6% 0 - -9,632-7% Distribution of electricity to end customers -8,746-4% 0-0 - -2,580-4% -1,643-3% 0 - -12,969-4%