ACTIVITY REPORT 2014

ACTIVITY REPORT 2014

Prepared by: ŠKODA JS a.s. Consultancy, design and production: AKCENT s.r.o.

Contents Presentation Part 02 Op ening W or d f r om t he Chair man of the Board of Directors and General Director 06 Company Introduction 08 Key Financial and Operating Results 10 Report on Company s Activities and Assets 20 Integrated Management System (IMS) 22 People at ŠKODA JS a.s. 24 Corporate Social Responsibility 26 ŠKODA JS a.s. and the Consolidated Group 27 Organization Chart of ŠKODA JS a.s. at 1 April 2015 28 Statutory Bodies and Top Management at 1 April 2015 Financial Part 32 Comments on Financial Results 36 Auditor s Report (According to CAS) 38 Financial Statements of ŠKODA JS a.s. (According to CAS) 42 Auditor s Report (According to IFRS) 44 Consolidated Financial Statements (According to IFRS) 48 Contact Details

Opening Word from the Chairman of the Board of Directors and General Director Dear shareholders, Dear business partners, In the year 2014 we saw a positive trend in growth in the volume of newly acquired contracts; last year our company took on new contracts with a value of nearly CZK 4 billion, which represents a 25% increase on the previous year. Despite the continuing decline in the nuclear market, particularly in Central and Western Europe, in 2014 ŠKODA JS a.s. once again achieved a positive financial result. According to the consolidated financial statement compiled in line with the IFRS standards, the company s revenues reached nearly CZK 3 billion, 50% of which was generated by exports. According to IFRS, in 2014 ŠKODA JS a.s. posted a consolidated operating profit of CZK 100 million. Investment engineering remains the key business for ŠKODA JS a.s. with a share of 48% in total revenues. The company is participating in currently the largest investment project in Slovakia Completion of Units 3 and 4 at the Mochovce Nuclear Power Plant. 2014 also saw a major expansion of our activities related to the completion of the Mochovce NPP, particularly as part of the support for coordination activities of the team of investors. A memorandum on mutual cooperation with the company Slovenské elektrárne, a.s. was signed, based on which we can expect even greater involvement of ŠKODA JS a.s. in the coordination and management of the entire project. Another significant long-term investment project realized by ŠKODA JS a.s. is the Refurbishment of the Instrumentation & Control System at the Dukovany Nuclear Power Plant project. 2 Opening Word from the Chairman of the Board of Directors and General Director

Following the completion of activities on pilot Unit 3 of the Dukovany NPP, in 2014 the systems of production Unit 2 were also replaced. Complete modernization of the instrumentation and control system on all units of the Dukovany NPP will be finished in 2016. In 2014, ŠKODA JS a.s. also took part in the public tender for the Refurbishment of the Instrumentation & Control System at the Paks Nuclear Power Plant. Our bid was selected as the winning bid at the beginning of 2015. Realization of this significant project, which is similar to the project at the Dukovany NPP, only on a smaller scale, will take place in 2016 2020. Production of nuclear equipment constitutes another segment of our corporate activities. In 2014, we continued to supply VVER technology to traditional Czech, Slovak, Hungarian and Ukrainian customers, i.e., the nuclear power plant operators ČEZ, a. s., Slovenské elektrárne, a.s., MVM Paks NPP Ltd., and NAEK Energoatom. The technology mostly included modernized control rod drives for reactor control, hermetic cable penetrations, and neutron in-core measurement channels. The production of equipment for the transport and storage of spent nuclear fuel is a promising and continually developing field of activities for ŠKODA JS a.s. At the end of 2014, our company succeeded in the tender organized by the company ČEZ, a. s. for the supply of 58 spent fuel casks for the Temelín NPP, specifically with the company s own ŠKODA 1000/19 cask. In 2014, ŠKODA JS a.s. continued in its successful activities in the area of modernization of experimental reactors. Production of the internal parts for the Belgian research reactor BR2 was completed, as was the order for the international experimental thermonuclear reactor ITER. Nuclear power plant services constitute the third business segment of ŠKODA JS a.s. Our service teams are gradually expanding the range of activities provided in the maintenance of six Czech nuclear power units at Dukovany and Temelín. The services are provided on the basis of a general contract concluded with ČEZ, a. s. for the provision of maintenance of the Reactor Building Logical Unit. This long-term contract stays in effect until 2016, and we will aspire for its renewal. In 2014, we created conditions for success in 2015 and beyond. We will continue to focus mainly on nuclear power engineering; apart from the local market, we also see opportunities in the Slovak and Ukrainian markets. We are also planning to intensively develop our cask program. We are also prepared to offer our services to VVER-type nuclear power plants outside the Czech Republic. We are also actively preparing for our involvement in nuclear power plant decommissioning projects. To conclude, I would like to thank the representatives of our shareholder, the joint-stock company OMZ B.V., for their effective support; I appreciate the helpful attitude of banking institutions that provided important financial services connected with the development of our business activities. My thanks also go to our business partners and subcontractors. One of the key factors in the successful development of our company is our stable staff of 1,100 highly qualified employees. Let me thank all of them for their efforts and active approach to work. Miroslav Fiala Chairman of the Board of Directors and General Director In line with the business strategy of the OMZ group, apart from nuclear energy projects, we also see a future in projects for the oil refining, petrochemical and natural gas industries. In 2014, we produced and supplied to the Russian company Tatneft a column and 3 pressure vessels for the Nizhnekamsk refinery, and thus gained new references in this area as well as invaluable experience for similar orders in the future. ŠKODA JS a.s. Activity Report 2014 3

ŠKODA JS a.s. won in the tender for the Refurbishment of the Instrumentation and Control System at the Paks Nuclear Power Plant. This turnkey project includes complete replacement of the outdated analog system of the original Russian supplier with a modern, digital I&C system. Refurbishment of the Instrumentation and Control System at the Paks NPP

Company Introduction ŠKODA JS a.s., a member of the Russian OMZ Group, comprises four divisions that develop strategic areas of business, focusing on development and supplies for the nuclear power industry and for the oil refining, petrochemical and natural gas industries. The individual divisions focus on the following areas of business: D1 NUCLEAR POWER PLANT ENGINEERING D2 NUCLEAR POWER PLANT SERVICES Construction of VVER nuclear power plants Modernization and upgrade of operating VVER units Construction of interim spent fuel storage facilities Construction and upgrade of research reactors Piping system engineering Decommissioning Calculations, design Reactor building equipment outage management Maintenance and repairs of reactor building equipment Upgrade of reactor building equipment Lifetime management/expansion for reactor building equipment In-service inspections of key reactor building equipment reactor, steam generators, main coolant piping, etc. Designer s supervision over inspections and repairs of reactors and their parts (control rod drives) Testing of VVER- and RMBK-type control rod drives 6 Company Introduction

D3 NUCLEAR EQUIPMENT D4 NUCLEAR POWER PLANT I&C Production of equipment for nuclear power plants with VVER, PWR and BWR reactors Production of equipment for spent nuclear fuel transport and storage Refurbishment and modernization of instrumentation and control (I&C) systems of operating VVER units Production of equipment for the oil refining, petrochemical and natural gas industries Production of equipment for research and development centers Development and design of new equipment (including control and maintenance) for the above-mentioned technologies ŠKODA JS a.s. Activity Report 2014 7

Key Financial and Operating Results Consolidated Group Key Financial and Operating Indicators (according to IFRS) CZK thousands 2011 2012 2013 2014 Assets = Liabilities (net) 4 107 649 3 178 445 2 834 158 3 035 975 Fixed assets (net) 533 930 667 612 890 436 753 702 Current assets (net) 3 573 719 2 510 833 1 943 722 2 282 273 Inventory (net) 297 935 170 737 233 371 122 930 Receivables (net) 1 555 847 1 018 885 935 834 1 685 177 Financial assets (net) 813 937 909 331 459 609 447 968 Other assets (net) 906 000 411 880 314 908 26 198 Shareholder s equity 1 578 416 1 621 759 1 665 311 1 694 501 Liabilities 2 529 233 1 556 686 1 168 847 1 341 474 Reserves 141 873 136 978 77 098 78 945 Payables 554 602 643 590 524 598 413 640 Credits 0 0 46 384 27 725 Other liabilities 1 832 758 776 118 520 767 821 164 Revenue from sale of goods, own products and services 4 948 024 4 983 389 3 393 695 2 953 136 Exports 3 594 858 2 809 972 1 787 702 1 457 909 Personnel expenses 763 124 795 756 780 022 743 571 Operating profit (EBIT) 316 319 308 118 182 137 99 646 Profit in the accounting period 249 882 247 049 137 597 61 383 Profit before tax 319 252 310 353 172 928 86 062 Average number of employees* 1 170 1 214 1 199 1 137 Value added labour productivity = EBIT+ personnel expenses 922 601 909 287 802 468 741 616 /average number of employees (CZK per employee) *average adjusted number Note: The selected indicators above are based on the company s consolidated financial statements, which have been properly published in the Commercial Register. The full financial statements, including the Notes, are available for inspection at the company s headquarters. Revenues from sale of goods, own products and services according to IFRS (in CZK thousands) Profit before tax according to IFRS (in CZK thousands) Export according to IFRS (in CZK thousands) 2011 4 948 024 2011 319 252 2011 3 594 858 2012 4 983 389 2012 310 353 2012 2 809 972 2013 3 393 695 2013 172 928 2013 1 787 702 2014 2 953 136 2014 86 062 2014 1 457 909 8 Key Financial and Operating Results

ŠKODA JS a.s. Key Financial and Operating Indicators (according to CAS) CZK thousands 2011 2012 2013 2014 Assets=Liabilities (net) 4 411 530 3 507 172 3 076 702 3 233 162 Fixed assets (gross) 1 696 681 1 796 376 2 064 001 2 022 072 Current assets (gross) 4 076 271 3 112 623 2 515 726 2 738 030 Inventory (gross) 2 360 166 1 415 567 1 431 644 1 269 880 Receivables (gross) 975 123 822 948 659 845 1 064 021 Financial assets (gross) 740 982 874 108 424 237 404 129 Other assets (gross) 14 006 12 452 45 070 24 734 Shareholder s equity 1 296 853 1 505 378 1 444 107 1 456 522 Liabilities 2 961 884 1 793 399 1 608 230 1 709 887 Reserves 235 368 247 720 205 457 287 525 Payables 2 726 515 1 545 679 1 356 389 1 422 362 Credits 0 0 46 384 0 Other liabilities 152 794 208 395 24 365 66 753 Revenue from sale of goods, own products and services 5 912 022 5 317 825 3 078 278 2 935 290 Exports 4 167 740 2 717 362 1 685 695 1 677 409 Added value 1 293 900 1 356 283 935 979 915 319 Operating profit/loss 513 461 523 671 87 255 103 992 Profit/loss for the accounting period 403 433 415 717 47 875 36 339 Pre-tax profit/loss 500 850 518 051 59 073 56 442 Average number of employees* 1 056 1 095 1 081 1 018 Value added labour productivity 1 225 284 1 238 615 865 845 899 135 (CZK per employee) *average adjusted number Note: The selected indicators above are based on the company s non-consolidated financial statements, which have been properly published in the Commercial Register. The full financial statements, including the Notes, are available for inspection at the company s headquarters. Revenue per employee according to IFRS (in CZK thousands) Value added l abour productivit y according to IFRS (in CZK per employee) Return on revenue (ROR) After-tax profit/ Revenues from sale according to IFRS (in %) 2011 4 229 2011 922 601 2011 5 2012 4 105 2012 909 287 2012 5 2013 2 830 2013 802 468 2013 4 2014 2 597 2014 741 616 2014 2 ŠKODA JS a.s. Activity Report 2014 9

Report on Company s Activities and Assets ENGINEERING FOR NUCLEAR POWER PLANTS Refurbishment of the Instrumentation and Control System at the Dukovany NPP ŠKODA JS a.s. is the general contractor of the project Refurbishment of the Instrumentation and Control System at the Dukovany Nuclear Power Plant, whose objective is to extend the lifetime of the nuclear power plant until at least 2025 and meet increasing demands on the safety and reliability of nuclear power plants. It is the most significant investment project currently being implemented in the nuclear power industry in the Czech Republic. The main subcontractors of ŠKODA JS a.s. are the companies ZAT a.s. and OT Energy Services a.s. The complete modernization of the I&C systems of all units at the Dukovany NPP will be finished in 2016. The refurbishment of the instrumentation and control (I&C) systems includes replacement of the control systems of the primary circuit, the turbine and the secondary circuit. Apart from refurbishment of the above-mentioned systems, this phase will include the supply of a new DIAG superset diagnostic and information system, aimed at collecting and processing operating and diagnostic data. The work on individual units is performed during planned maintenance and refueling outages. This method of installation is highly challenging in terms of coordinating a huge volume of activities both in outage preparation and implementation. The method of installation as well as the strategy of testing and commissioning new I&C systems without any interruption of the power plant s regular operation are quite unique. No such method of replacement of such a significant and extensive part of nuclear power plant technology has ever been applied at any nuclear facility in the world. Following the completion of activities on pilot Unit 3 of the Dukovany nuclear power plant, the systems on production Unit 2 were replaced in 2014. Last year, as part of the program aimed at increasing the safety of the Dukovany NPP, ŠKODA JS a.s. started to work on the project Introducing important measurements into the post-accident monitoring system. By 2016, important technological signals, including radiation monitoring and spent fuel pool monitoring, will gradually be implemented into the post-accident monitoring system on all four units of the nuclear power plant. Non-unit I&C System Refurbishment at the Temelín NPP In 2014, the third phase of the Non-unit I&C System Refurbishment at the Temelín NPP project was successfully completed and handed over. Again, the main subcontractors were the companies ZAT a.s. and OT Energy Services a.s. The first phase of the project was launched in 2012, and the last phase will be completed in 2015. Refurbishment of the Instrumentation and Control System at the Paks NPP In 2014, ŠKODA JS a.s. participated in the tender for the Refurbishment of the Instrumentation and Control System at the Paks Nuclear Power Plant in Hungary. At the beginning of 2015, the bid from ŠKODA JS a.s. was chosen as the winning bid. This turnkey project includes complete replacement of the outdated analog system of the original Russian supplier with a modern, digital I&C system. The new Reactor Rod Control Systems (RRCS), Reactor Control Systems (RCS) and Reactor Trip Breakers (RTB) will first be installed in 2016; the entire project is planned to be completed in 2020. Cooperating on the project with ŠKODA JS a.s. will be the Czech company ZAT a.s. or the Hungarian company MVM OVIT Zrt. Completion of Units 3 and 4 at the Mochovce NPP In 2014, ŠKODA JS a.s. continued in the execution of currently the most important investment project in Slovakia Completion of Units 3 and 4 at the Mochovce Nuclear Power Plant. The company acts as the supplier of essential operating systems of the power plant primary circuit, fuel handling part, connecting pipes, intermediate cooling circuits, part of the I&C system and maintenance workshops. The year 2014 saw a major expansion of activities of ŠKODA JS a.s. related to the completion of the Mochovce NPP, particularly as part of the support for coordination activities of the team of investors. The contracts for the support for the coordination 10 Report on Company s Activities and Assets

of commissioning works, the support for the coordination of construction and installation works, and the support for the coordination of the interface between specialized engineering activities were signed last year. Based on these contracts, the supporting coordination activities at the Mochovce NPP are performed by 110 personnel. A memorandum on mutual cooperation with the company Slovenské elektrárne, a.s. was signed, based on which an even greater involvement of ŠKODA JS a.s. in the coordination and management of the entire project can be expected. One of the company s main subcontractors on the project for the area of piping systems was replaced last year. In connection with this, ŠKODA JS a.s. established in its Engineering division a new department Piping Systems Engineering, which expands the company s competencies in this field. Piping Systems Engineering In 2014, ŠKODA JS a.s. opened a design office in Prague specializing in the field of Piping Systems Engineering. This office is staffed by a team of experienced designers who, as employees of another company, had cooperated with ŠKODA JS a.s. on the project Completion of Units 3 and 4 at the Mochovce NPP. Its team members are mostly experienced specialists who have been working in the energy industry for decades. Opening the new design office has expanded the competencies of ŠKODA JS a.s. in the field of piping systems, including comprehensive engineering activities from schematic design development, the construction document phase and calculations, to preparing production design and calculation documentation. By opening the design office, ŠKODA JS a.s. intends to expand its activities related to providing support for both existing and new customers in the area of nuclear and conventional energy, as well as in the petrochemical, natural gas and other industries. The acquired know-how could also make it possible to produce piping components in the production facilities of ŠKODA JS a.s. The company will be ready to make a bid in the expected tender for the construction of additional Czech nuclear units at Temelín and possibly at Dukovany, and if successful, it will be prepared to ensure the design and realization of the piping systems for the primary and secondary circuits. ŠKODA JS a.s. Activity Report 2014 11

SERVICES FOR NUCLEAR POWER PLANTS Maintenance of Reactor Building Logical Units at Czech Nuclear Power Plants In 2014, for the seventh year in a row, ŠKODA JS a.s. continued to provide maintenance services at the Dukovany and Temelín NPPs, based on the general contract concluded in 2008. According to this significant long-term service contract, we are to provide maintenance services until at least 2016. Just as in previous years, the quality of the company s personnel and the preparedness of the group of subcontractors were tested in the course of scheduled as well as unscheduled repairs of the equipment during the overhaul of all six units and during their operation at full power. Besides the standard scope, the following activities were carried out at the Temelín NPP: removal and disposal of 4 neutron flux measurement channels using new equipment produced by ŠKODA JS a.s. extended inspection of the reactor s upper block and the installation of studs with integrated shims on the reactor s upper block flange inspection of the pressurizer, including a check of the inner surface using the KOVOK device The length of two planned refueling outages at the Temelín NPP was reduced by almost one day last year. In 2014, maintenance services were provided during four planned refueling outages at the Dukovany NPP as well as a number of service procedures performed on operating units. The following activities were performed as part of one-off investment projects at the Dukovany NPP: repair of essential service water pipes replacement of shims on steam generator studs replacement of connecting accessories on steam generator primary collectors repair of threaded hole run-outs on steam generator primary collectors repair of defects on the guide wheel and pressure head of main coolant pumps installation of a secondary heat barrier on the main coolant pumps Two of four outages at the Dukovany NPP were performed in a shorter amount of time than planned, and the total length of outages in 2014 was approx. 2.3 days longer than planned. This prolongation was not caused by employees of ŠKODA JS a.s. 12 Report on Company s Activities and Assets

ŠKODA JS a.s. is a reliable partner to the power plant operator during unit outages, maintenance preparation and implementation as well as when providing preventive and corrective maintenance. In this role it draws not only on the experience of its service units but also on its extensive experience from the production of nuclear equipment and support provided by its specialized departments operating within its parent company in Pilsen. Due to its responsible approach to maintenance performance, ŠKODA JS a.s. has become an integral part of the outage team at the Dukovany and Temelín nuclear power plants. In-service Inspections During the assessment period, ŠKODA JS a.s. performed the following inspections and measurements at Czech nuclear power plants: inspection of the reactor pressure vessel material from the outer surface by the use of the SKIN manipulator at Unit 1 of the Temelín NPP inspection of reactor internals, circumferential welds of one main coolant piping loop, and manual inspections of reactor pressure vessel components and the primary circuit at the Temelín NPP inspection of the reactor pressure vessel from the outer surface, reactor head circumferential weld, circumferential welds of one main coolant piping loop, and manual inspections of primary circuit austenitic welds at the Dukovany NPP eddy current inspection of stainless steel housings of HRK nozzles in all four units of the Dukovany NPP eddy current inspection of heat exchanging tubes of steam generators in all units of the Dukovany and Temelín NPP non-destructive tests of heterogeneous welds of various diameters on the primary circuit of both units at the Temelín NPP by the use of the COBRA manipulator measurement of efficiency of aerosol and iodine air-conditioning filters in both units and in the auxiliary service building at the Temelín NPP Component Diagnostics and Lifetime The continuing technical development project entitled Development of New Technology for Repair Welding of Operating VVER 1000 Reactor Pressure Vessels aims to develop new technology for repair welding without timeconsuming and technologically demanding heat regimens during the repair of the reactor pressure vessel (pre-heating and post-repair thermal processing). An international consortium comprised of ŠKODA JS a.s., RWE Power AG, AREVA GmbH and the Ukrainian company Proatom started its activities last year. The consortium is financed from the European Commission s project and its task is to provide consultancy services to operators of nuclear power plants in Ukraine. As part of this project, the Component Diagnostics and Lifetime Department focuses on consulting in the areas of modification of parameters in the performance of strength pressure tests and the optimization of in-service inspections in the primary circuit. Material Laboratories Material Laboratories deliver material testing and expertise for the internal needs of ŠKODA JS a.s. as well as for external customers. In 2014, the Material Laboratories underwent re-accreditation, based on which the Certificate of Accreditation was extended until 2019. Testing Shops In the Testing Shops, complete hand-over and periodic tests of another set (65pcs) of LKP-M/2 linear stepper drivers with UP-2 position indicators for the Zaporozhe NPP were carried out. A set of PRO-M control rod drives for Unit 3 of the Mochovce NPP were tested at the test stand. Approximately 8,000 pieces of various types of graphite gaskets were produced for the upper block flange joint of VVER reactors as well as supplies and tests of control rod drives. Also, 140 LPG tanks were inspected by means of the acoustic emission method in the Czech Republic and Slovakia. ŠKODA JS a.s. Activity Report 2014 13

Eastern Markets In 2014, ŠKODA JS a.s. continued in the supply of control rod drives for Ukrainian nuclear power plants with 65 pcs of LKP-M/2 linear stepper drives for the Zaporozhe NPP. A contract was concluded last year for the supply of control rod drives for the last unrefurbished Unit 2 of this nuclear power plant. In 2014, ŠKODA JS a.s. supplied a Tightening unit EZ 250 for VVER 1000 reactor head and upper block flange joints to the Balakovska NPP. For the company Izhorskiye Zavody, also a member of the OMZ Group, ŠKODA JS a.s. started the production of hexagonal tubes for the wet storage of spent nuclear fuel. Also, the production of a cask wagon for the Chernobyl nuclear power plant started. The supply of the cask, hand-over of the whole equipment for trial operation and licensing will be carried out in 2015. Within the Mochovce NPP completion project, ŠKODA JS a.s. supplied 110 pcs of hermetic cable penetrations. The company also continued to supply neutron flux measurement channels to the Dukovany and Paks nuclear power plants. As part of the construction of Prague Metro Line A, ŠKODA JS a.s. supplied to the company ČKD PRAHA DIZ, a.s., a set of hermetic closures for the Dejvická station. Western Markets PRODUCTION OF EQUIPMENT FOR NUCLEAR POWER PLANTS Training and Research Reactors In 2014, ŠKODA JS a.s. continued in its successful activities in the field of modernization of research reactors. Successfully completed was the production of new internals for the Belgian research reactor BR2, ranking among the research reactors with the highest power output in the world, primarily used for testing fuel and materials for other reactor types and the production of radioisotopes. ŠKODA JS a.s. supplied 158 main and several hundred smaller stainless steel parts to the Belgian company SCK CEN. In the first half of 2014, ŠKODA JS a.s. concluded a contract for the modification of the ŠKODA VPVR/M package assembly for the transport of spent nuclear fuel from the Chinese research reactor of the MNSR type (Miniature Neutron Source Reactor). A pilot project for the transport of spent nuclear fuel from a research institute in Ghana back to China will be carried out. The contract, whose performance is to take 19 months, will be executed by ŠKODA JS a.s. in cooperation with the company ÚJV Řež, a. s., which has extensive experience with the transport of Soviet or Russian spent nuclear fuel from research institutes in Europe, as well as, e.g. from Vietnam. The Company realized its second contract for ITER and also concluded another follow-up contract for works connected with development of the pressure vessel flange. ITER is a thermonuclear experimental reactor which is being built by an international consortium (made up of the European Union, the United States, Russia, China, Japan, South Korea and India) in the French city of Cadarache. ŠKODA JS a.s. designed and successfully tested the method of tightening main flange joint studs with induction preheating. The works, which have already begun, include the production of a model flange and its testing with respect to the strict requirement for high tightness during simulations of actual operating conditions. ŠKODA JS a.s. is cooperating with the British company Arcflex on this project. At the end of last year, ŠKODA JS a.s. concluded a contract on cooperation in the area of research and development with the Brazilian company Atech (a member of the EMBRAER Group) for the Labgene experimental reactor project. The projects are IPMAB (reactor control rod drive position sensors) and EXMAB (reactor control rod drive activator). On both projects ŠKODA JS a.s. will closely collaborate with the company ZAT a.s. It is the company s first project ever in the Brazilian market. Production of components for PWRand BWR-type power plants ŠKODA JS a.s. started works on the spent fuel cask transfer facility for the EPR-type nuclear power plant which is to be built at Britain s Hinkley Point. ŠKODA JS a.s. is conducting a research study on the impacts of changes in the philosophy of spent fuel handling on the design of the spent fuel cask transfer facility. The customer, the French energy giant Electricité de France (EDF), is considering the use of wet spent nuclear fuel storage as opposed to dry storage, 14 Report on Company s Activities and Assets

which is planned to be used in the newly constructed EPR unit at Flamanville in France. EDF approached our company, which is one of the world s two major suppliers of this system for nuclear plants with an EPR reactor. Also the production and gradual installation of the spent fuel cask transfer facility that will be used in the newly constructed EPR unit at the French Flamanville nuclear power plant continued. The whole equipment should be commissioned in 2015. Production of components for VVER-type power plants ŠKODA JS a.s. successfully continued to supply spare parts for the control mechanisms for two VVER 440-type reactors at the Loviisa NPP in Finland. In the second half of last year, the operator of the Loviisa power plant placed an order for the production of a set of intermediate rods with the deadline for implementation by 2018. The Finnish operator of the Loviisa nuclear power plant, Fortum Power and Heat Oy, has long appreciated the high quality of the delivered components and compliance with the contractual terms. The company once again closely cooperated with the Swedish subsidiary of the Westinghouse company (WSE) on the production of top and bottom nozzles for VVER 1000 nuclear fuel, which WSE supplies to the Ukrainian market. The supplies of nuclear fuel to Ukraine by Westinghouse are currently increasing, and there is an optimistic outlook for the future. This expansion is an opportunity for ŠKODA JS a.s., and increased supplies of these components can be expected in the coming years. Production of Equipment for the Storage of Spent Nuclear Fuel In 2014, ŠKODA JS a.s. produced four CASTOR 1000/19 casks for the German company GNS mbh. The end user of the casks is the Temelín nuclear power plant. Another four casks are currently being produced that are to be supplied in 2015. Based on the license from the GNS company, three CASTOR 440/84M casks were produced directly for ČEZ, a. s. and its Dukovany nuclear power plant. Another two casks of this type are in production to be supplied in 2015. At the end of 2014, ŠKODA JS a.s. received a type approval from the State Office for Nuclear Safety for a new type of fuel for the CASTOR 440/84M cask for the Dukovany NPP, production of which will start next year. The supply of twenty casks will take place from 2016 to 2020. Also in production are the CONSTOR RBMK1500/M2 casks for the Ignalina nuclear power plant, on which the qualification test of the head rings modification, commissioned by the GNS Company, was conducted. Awaiting this modification is a total of 150 casks that are to be supplied by 2019. At the end of 2014, ŠKODA JS a.s. succeeded in the tender organized by ČEZ, a. s. for the supply of 58 casks for spent nuclear fuel for the Temelín NPP, specifically with the company s own ŠKODA 1000/19 cask. Production of Equipment for the Oil Refining, Petrochemical and Gas Industries The Oil & Gas sales team engages the company s engineering and production capacity in the realization of new projects involving the supply of reactors, columns and pressure vessels for the processing industry. ŠKODA JS a.s. thus strives to follow up on its successful activities in 1996 2006, when a number of projects were realized in this area, the biggest of which was the project Natural Gas Processing Plant Sosnogorsk. ŠKODA JS a.s. Activity Report 2014 15

In 2014, ŠKODA JS a.s. won a contract with the Russian company Tatneft for the production of crude oil processing equipment, supplying a C0004 column and three pressure vessels to the Nizhnekamsk refinery. Production of the equipment was carried out in compliance with the Russian standards GOST. Thanks to the successful execution of this project, ŠKODA JS a.s. received new references in the area of Oil & Gas equipment production as well as valuable experience for similar contracts in the future. Investments In 2014, ŠKODA JS a.s. spent in total over CZK 87 million on acquisitions and repairs of capital assets, of which CZK 40 million was spent on the refurbishment of machinery, equipment and buildings, and more than CZK 47 million on the modernization and procurement of new technology, including IT projects worth CZK 12 million. The most important investment projects completed in 2014 include the procurement of a CNC lathe with a motorized rotating platform for the light machining workshop in Bolevec, a 48-channel ultrasound device for the performance of in-service inspections of reactor pressure vessels from the inner as well as outer surface in the NPP Services division, and equipment for controlled electric resistive heating (preheating and post weld heat treatment) and local thermal processing in the Reactor Shop. New Magnifi software was purchased for the NPP Services division and its In-service Inspections team. Together with the existing eddy current testing devices, the software will form a functional unit for testing the material surfaces of primary circuit components at both Czech as well as foreign nuclear power plants. For the Calculations division, the software Nozzle FEM, designed for the calculations and assessment of the strength of the attachment of nozzles to the shroud 16 Report on Company s Activities and Assets

or the arched bottom by the Finite Element Method (FEM), was procured. The software will also be used for strength calculations of flange joints subjected to internal pressures, temperature field, external forces and moments. Research and Development Research and development (R&D) is a key part of the company structure of ŠKODA JS a.s. The company s own innovation potential represents a competitive advantage over purely manufacturing companies, and the development of new products helps the company enter new markets. The key areas of research and development are: nuclear power plant services storage and transport of spent nuclear fuel verification of prototype equipment key components research into materials of nuclear power plant components or the company s own products production of nuclear power plant equipment the CANUT project (Center for Advanced Nuclear Technologies) In the field of nuclear power plant services, research and development activities focused on the development of special equipment and technology procedures for diagnostics, repairs and lifetime extension of nuclear power plant components. A significant project was the Development of New Technology for Repair Welding of VVER 1000 Reactor Pressure Vessels. The newly developed technology allows welding of the pressure vessel base material without preheating and post-repair heat treatment. The focus in the area of calculations was on activities aimed at improving software for determining nuclear power plant components residual lifetime. In the area of spent nuclear fuel storage and transport, work continued on the development of the company s own type of cask for modern VVER 440 and 1000 fuel. R&D focused mainly on verification of the production of certain components, machining technology and surface treatment of cask parts. Another strategic project of ŠKODA JS a.s. was the development of a new control rod position indicator for LKP-M drives. The innovated indicator features the ability to measure even in the event of a defect in several coils, and its operation requires fewer lead-in cables. Within CANUT, supported by the Technology Agency of the Czech Republic, ŠKODA JS a.s. is in charge of two work packages : Storage and Transport of Radioactive Waste, Especially Spent Nuclear Fuel Device for Inspecting Primary Circuit Components of Pressurized Water Reactors Within the second CANUT project, the Modular Inspection System for Reactor Pressure Vessel Inner Surface Inspections (MKS) was developed. In 2014, the MKS system underwent a series of functional and stress tests. ŠKODA JS a.s. submitted a patent application for the MKS system to protect its utility model and industrial design. ŠKODA JS a.s. Activity Report 2014 17

Belgian Research Reactor BR2 For one of the research reactors with the highest power output in the world, ŠKODA JS a.s. produced new internal parts. In total 158 main and several hundred smaller stainless steel parts were supplied to the Belgian company SCK CEN. 18 Název kapitoly

ŠKODA JS a.s. Activity Report 2014 19

Integrated Management System (IMS) ŠKODA JS a.s. has long been successful in the development of an Integrated Management System (IMS), which is the basic management tool for all company processes. The IMS includes the integrated management of the requirements of standards ISO 9001, ISO 14001, OHSAS 18001 and also the requirements set by CEFRI. Apart from that, in its design and production of nuclear power plant equipment the company has long maintained compliance with the requirements of the American ASME standard, another system used independently of the IMS. The correct functionality of the integrated system is regularly checked by audits carried out by the supervisory organization, and internal as well as customer audits. In 2014, a supervisory audit was carried out by the certification body DNV GL pursuant to ISO 9001, ISO 14001 and OHSAS 18001, during which no major findings were identified. A third-party audit also inspected the IMS from the point of view of compliance with welding procedure requirements set out in ISO 3834-2 and 1090-2, also without major faults. In 2014, ŠKODA JS a.s. passed the CEFRI and ASME Code, Section III supervisory audits. The CEFRI audit was the final stage before the recertification audit in 2015. There were also a number of customer audits last year. The significant ones included the audit by the Russian company AKME Engineering, which focused on the project of the new SVBR reactor, and also audits by the companies ČEZ, a. s., FORTUM, Slovenské elektrárne, a. s., and the Radioactive Waste Repository Authority (RAWRA). In 2014, company management focused on the implementation of Safety Culture principles and the application of requirements of international standards (GS-R-3) in the existing IMS. Based on the WANO 2013 methodology, a system of safety culture self-assessment was created, which will first be applied in 2015. Also, all the company s regulations related to the compliance with safety culture requirements were identified, and the manner of their updating was determined. Part of the process of continual improvement of the IMS is the gradual electronization of selected company processes aimed at significantly increasing their efficiency. In 2014, a detailed analysis of the weak points in the tendering procedure was conducted, which resulted in a decision to create a comprehensive software application to manage the workflow in Lotus Notes, which covers the entire process from assessing tenders to signing contracts. Similarly, together with the Project Management Department, a software application was developed for the full electronic management of contract and project-related correspondence, again in Lotus Notes, which logs all important communications between project managers and customers. The application manages both electronic as well as paper-based correspondence, from assigning a number, filing and processing, to records of replies. In 2014, the document management system for project technical documentation was also modified. The system was continually optimized and sped up for the specific purpose of contract documentation management. Based on the positive experience with its use, a project was initiated to make information on up-to-date project documentation available on computer terminals in production. Contract and Project Quality Assurance Apart from standard activities in ensuring contract quality in the company s production (tracking causes of the occurrence of variances and deviations and searching for effective preventive measures to eliminate their recurrence) and on the part of the company s suppliers, the efforts of the Quality Management team focused on the analysis of project input documents for the supply of equipment for the planned construction of two new units at the Hinkley Point nuclear power plant in England. The legislation of Great Britain is very particular mainly in the area of defining any mistakes caused by the human factor and their elimination by appropriate preventive measures taken already in the stage of the initial creation of project documentation. A total of 45 quality audits and quality inspections were conducted in the companies of the suppliers in the Czech Republic, Slovakia, France and Germany. As part of the supplier quality management for the Reactor Building Logical Unit, in 2014 a joint effort was initiated with ČEZ, a. s., whose objective is to integrate the methodology of the performance of supplier audits, which in the future will allow the mutual recognition of supplier qualifications. 20 Integrated Management System (IMS)

As another tool to improve internal communication in ensuring quality in the execution of contracts, regular quality staff meetings were introduced across the company s divisions. Technical Inspection The qualification of technical inspection personnel is maintained as required by the legislation applicable to non-destructive testing, ČSN EN ISO 9712, Czech legislation Decree No. 309/2005 Coll., ASME Code and the company s internal IMS documentation. The high-level equipment of inspection centers is continuously maintained. The technical inspection workplace was newly equipped with a device for spectral analyses of very small components, which will significantly speed up the performance of measuring and at the same time ensure adequate occupational health and safety of employees. NDE Testing Laboratory Non-destructive testing is an integral part of the production process and contributes to meeting the strict criteria of the product quality control used in the nuclear power industry, where the emphasis is placed on nuclear safety. In 2014, laboratory personnel qualifications were increased (one Level III personnel in the UT method) and re-certification of personnel after ten years was also carried out in compliance with the requirements of ČSN EN ISO 9712. Certifications were continuously renewed after five years pursuant to the above-mentioned standard and after three years pursuant to SNT-TC-1A as required by the ASME Code. In 2014, the NDE testing laboratory underwent a regular supervisory audit by the Czech Accreditation Institute pursuant to ČSN EN ISO/IEC 17025. The supervisory audit once again confirmed the laboratory s professional competence and a functioning quality management system. Environmental Protection ŠKODA JS a.s. fully observes all applicable environmental protection principles. The company s environmental behavior is appreciated by many parties concerned and it can significantly influence business prosperity. The approach to the environment plays an important role in the selection of business partners not only in foreign tenders but also with larger domestic companies. Environmental aspects form a part of the business strategy and the everyday management of optional tools recommended by international organizations and the policies of the European Union and individual member states. ICT Development In 2014, a complete IT infrastructure, including a VPN line, servers, work stations, special software equipment for calculations, multi-purpose equipment and a data backup system, was created for the newly opened subsidiary of ŠKODA JS a.s. in Prague. Due to the general trend of increasing work data volume, the capacity of the existing disk space was increased as well as the capacity of the backup system with deduplication EMC Datadomain. Within the gradual modernization, the company s meeting rooms were equipped with high performance projectors with HDMI connectivity. The most important contracts in terms of quality assurance in Technical Inspection and the NDE Testing Laboratory: production of parts for the BR2 research reactor (customer SCK CEN, Belgium) refurbishment of drives and the production of new parts for PRO drives (customer ČEZ, a. s., Czech Republic) equipment for the transfer of spent nuclear fuel casks the SFCTF project (customer EDF, France) production of spent nuclear fuel casks (customer GNS mbh, Germany and ČEZ, a. s., Czech Republic): Castor 440/84 for the Dukovany NPP Castor 1000/19 for the Temelín NPP the production of hexagonal pipes (customer Izhora Plants, Russian Federation) production of a column and three pressure vessels for the Nizhnekamsk refinery (customer Tatneft, Russian Federation) production of 65 pcs of LKP-M drives (customer NAEK Energoatom, end customer the Zaporozhe NPP, Ukraine) production of hermetic cable penetrations (customer PPA Controll, a.s., end customer Slovenské elektrárne, a.s., Slovakia) ŠKODA JS a.s. Activity Report 2014 21

People at ŠKODA JS a.s. In 2014, ŠKODA JS a.s. continued in the optimization of its staff, particularly in terms of size and professional composition. 985 employees worked at ŠKODA JS a.s. at the end of 2014. The average adjusted number of employees in 2014 amounted to 1,018 employees, i.e., 63 average adjusted employees fewer than in 2013. The number of employees working in the consolidated entity (ŠKODA JS a.s. and ŠKODA SLOVAKIA, a.s.) amounted to 1,112 employees at the end of 2014. The consolidated average adjusted number of employees in the year 2014 was 1,137, i.e., 62 average adjusted employees fewer than in 2013. Age and Educational Structure of Employees In 2014, the average age of employees in the company was 44.8 years. The educational structure of employees has been maintained at the same level in the long term see the graph. Staff Training and Development ŠKODA JS a.s. has in the long term been supporting the training and development of its employees. In 2014, the amount of CZK 3,573,785 was invested in the field of education, i.e., an average of CZK 3,511 per employee see the graph. The training was mainly focused on the employees professional growth and also language and computer skills. Regular training required by general binding rules and standards constituted an integral part of these educational efforts. Occupational Health and Safety The company has received certification of its OHS system under OHSAS 18001:2007. The number of occupational injuries in ŠKODA JS a.s. has been maintained at a low level in the long term. In 2014, there were five minor work-related injuries resulting in incapacity to work see the graph. The low injury rate is the result of the company s systematic activities in the area of occupational health and safety and the continuous search for and minimization of risks that pose a threat to the health and life of employees. Social program In the company working hours of 37.5 hours per week have been set. The employer contributes CZK 900 a month to employees supplementary pension insurance. Reconditioning rehabilitation care and leave are provided to employees working in challenging work environments. The employer has set up a special fund to assist employees in meeting their social needs. The company further provides for its employees: - an extra week of annual leave beyond the framework of statutory leave pursuant to the Labor Code - time off with wage compensation beyond the legislative framework - anniversary rewards - sickness benefits for the first three days of sickness Social fund utilization in 2014 (CZK thousands) Catering contribution 260 Recreation for children and families 205 Contribution for preventive medical programs 203 Sports, cultural and other activities 293 Used in total 961 22 People at ŠKODA JS a.s.

Number of employees in ŠKODA JS a.s. in 2010 2014 2010 2011 2012 2013 2014 1 064 1 170 1 214 1 199 1 137 Consolidated average adjusted number Staff training costs in 2010 2014 Age structure of employees in ŠKODA JS a.s. at December 31, 2014 39 % 51 years and more 22 % 45 50 years 15 % up to 30 years 24 % 31 40 years 2010 2011 2012 2013 2014 3 239 3 771 3 203 3 021 3 511 Costs CZK/Employee Occupational injuries in 2010 2014 3 158 260 3 981 952 3 507 090 3 265 412 3 573 785 Total in CZK Education attained by emmployees of ŠKODA JS a.s. at December 31, 2014 1 % elementary 32 % university 25 % secondary vocational school without finals 2010 2011 2012 2013 2014 4 4 8 3 5 Occupational injuries resulting in incapacity to work 42 % secondary school ŠKODA JS a.s. Activity Report 2014 23

Corporate Social Responsibility Socially responsible behavior is part of the corporate philosophy of ŠKODA JS a.s. The company is aware of its obligations arising from its position as one of the most important companies in the Pilsen region. Every year, it supports a number of cultural, educational, sporting and charitable projects. The company has provided long-term support for technical schools in the region. ŠKODA JS a.s. supports, both financially as well as by its experts teaching activities, the University of West Bohemia and the Czech Technical University in Prague. Students of the technical faculties of these universities also have the opportunity to write their bachelor s and master s theses according to the instructions and under the expert supervision of the company s employees. ŠKODA JS a.s. has traditionally developed the most extensive cooperation in the Pilsen Region. In 2014, the company concluded a long-term contract on cooperation with the University of West Bohemia, based on which it received the title Institution Cooperating with the University of West Bohemia in Pilsen. The company experts are also involved in teaching students majoring in the Design of Nuclear Power Systems in the Department of Power System Engineering at the Faculty of Mechanical Engineering. Cooperation also continues in the practical teaching of engineering apprentices and in the professional practice of students of secondary technical schools. To increase public interest in science and technology, the company actively participates in projects organized by the Techmania Science Center. ŠKODA JS a.s. is the main organizer of the annually held Nuclear Days in Techmania, where it provides lectures on nuclear energy for both students and the general public. The company also supported the interactive competition for elementary school children called Space Expedition, which concluded with a simulated flight to a comet. ŠKODA JS a.s. is a member of the following organizations The Czech Nuclear Society is an organization comprised of individuals interested in nuclear power industry, as well as organizations, schools, research institutes, production companies as collective members in the form of membership of legal entities or their organizational units. The Czech Nuclear Education Network is a voluntary academic association comprised of educational institutions engaged in education in the area of Nuclear Engineering and production companies striving to develop and maintain the quality of Czech nuclear education and its position within the European context. The Technology Platform Sustainable Energy for the Czech Republic is an institutional tool for the support of activities in connection with research, development and implementation of technologies usable for the sustainable expansion of generation, transmission and consumption of modern forms of energy in the Czech Republic. The Regional Chamber of Commerce of the Pilsen Region The Chamber for Commercial Relations with the Confederation of Independent States Over the long term, ŠKODA JS a.s. helps those in need, in particular through social welfare homes, children s homes and charities operating in the Pilsen Region. 24 Corporate Social Responsibility

ŠKODA JS a.s. Activity Report 2014 25

ŠKODA JS a.s. and the Consolidated Group Parent company Parent company ŠKODA JS a.s. Registered office: Orlík 266/15, Bolevec, 316 00 Plzeň, Czech Republic Date of establishment: 5 March 1993 Founder: ŠKODA a.s. Shareholder: OMZ B.V. Contribution: 100 % Company reg. No.: 25235753 Subsidiaries Included in the Consolidated Group Subsidiary: Registered office: Date of establishment: Founder: Shareholder: Contribution: 100 % Company reg. No.: 34120220 Other Securities and Holdings ŠKODA SLOVAKIA, a.s. Hornopotočná 4, 917 01 Trnava, Slovak Republic 25 April 1995 (incorporated in the Commercial Register maintained by the Registration Court in Bratislava, Part s.r.o., Insert 3544/K) ŠKODA JS a.s. (at the time of founding ŠKODA JADERNÉ STROJÍRENSTVÍ, Plzeň, s.r.o.) ŠKODA JS a.s. Company: ÚJV Řež, a. s. Registered office: Husinec Řež, Hlavní 130, post code 250 68, Czech Republic Date of establishment: 31 December 1992 (incorporated in the Commercial Register maintained by the Municipal Court in Prague, Part B, Insert 1833) Founder: The company was founded by a sole founder the Federal national Property Fund ŠKODA JS a.s. share in the registered capital: 17,40 % Company reg. No.: 46356088 Company: Interatomenergo M.CH.O. Registered office: Kitaygorodskyi proyezd, d. 7, 109074, Moscow, Russian Federation Date of establishment: 13 December 1973 Founder: The association was founded on the basis of a decision by the governments of former CMEA countries and the Federal People s Republic of Yugoslavia ŠKODA JS a.s. share in the registered capital: 12,78 % Legal form: International economic association Nuclear Power Alliance a. s., in liquidation By the decision of the General Meeting held on September 12, 2014, the company was dissolved with its assets liquidated as of the 1st day of the month following the record of the reduction in the basic capital, i.e., November 1, 2014. 26 ŠKODA JS a.s. and the Consolidated Group

Organization Chart of ŠKODA JS a.s. at 1 April 2015 ŠKODA JS a.s. General meeting ŠKODA JS a.s. Supervisory Board ŠKODA JS a.s. Board of Directors General Director General Director s Office Engineering Office DIVISION D1 NPP ENGINEERING Department Commerce Deputy General Director for Economics and Finance Section Deputy General Director for Administration DIVISION D2 NPP SERVICES Department Human Recourses Department Business Controlling DIVISION D3 NUCLEAR EQUIPMENT Department Quality Management Department Finance DIVISION D4 NPP I&C Department Project Management ŠKODA JS a.s. Activity Report 2014 27

Statutory Bodies and Top Management at 1 April 2015 Board of Directors Miroslav Fiala Board Chairman Igor Molibog Board Vice Chairman Iliya Novickov Board Vice Chairman Miloslav Provod Board Member Josef Perlík Board Member Jan Kleisner Board Member Mikhail Ignatenkov Board Member Supervisory Board Vadim Makhov Board Chairman Yury Utochkin Board Member Dmitry Zauers Board Member Mikhail Smirnov Board Member Miroslav Fiala Top Management Miroslav Fiala General Director Miloslav Provod Commercial Director Jan Kleisner Finance Director Elena Borisova Deputy General Director for Economics and Finance Mikhail Ignatenkov Deputy General Director for Administration Petr Altschul NPP Engineering Division Director František Krček NPP Service Division Director Karel Hegner Nuclear Equipment Division Director Jiří Janeček NPP I&C Division Director Josef Perlík Project Management Director Kateřina Říhová Human Resources Director Libor Holík Business Controlling Director Roman Zdebor Quality Director 28 Statutory Bodies and Top Management

Igor Molibog Iliya Novickov Miloslav Provod Josef Perlík Mikhail Ignatenkov Jan Kleisner Kateřina Říhová Karel Hegner František Krček Libor Holík Petr Altschul Jiří Janeček Roman Zdebor Elena Borisova ŠKODA JS a.s. Activity Report 2014 29

Completion of Units 3 and 4 at the Mochovce NPP ŠKODA JS a.s. is significantly expanding its activities within the Mochovce NPP completion project, particularly as part of the support for coordination activities of the team of investors. The contracts for the support for the coordination of commissioning works, the support for the coordination of construction and installation works, and the support for the coordination of the interface between specialized engineering activities were signed in 2014. 30 Název kapitoly

ŠKODA JS a.s. Activity Report 2014 31

Comments on Financial Results Profit and Loss Statement In 2014, ŠKODA JS a. s. posted a pretax profit of CZK 86,062,000 (according to the International Accounting Standards IFRS), which constitutes about 3% of the realized revenues from sales. This economic result represents a decrease compared to the previous period; however, under the company s given business conditions of 2014, we achieved the maximum result possible. This economic result was achieved primarily due to the positive contribution of our NPP Services division, which has consistently been successful in terms of both revenues and profit. After many years, the company s total revenues from sales were just below CZK 3 billion, dropping by CZK 441 million compared to the year before, especially due to the suspended implementation of new investment projects in the nuclear power industry field and the stagnating market. The prospects for 2015 are more optimistic and we expect revenue to go back up to CZK 3.4 billion. We also expect an adequate improvement in the company s financial results. The Company s Financial Situation, Project Funding and Insurance In 2014, ŠKODA JS a.s. once again showed a strong liquidity position, although there was an uneven development in the monthly cash flow balances throughout the year, resulting particularly from the realization of the long-term project Completion of Units 3&4 at the Mochovce NPP. Any short-term negative cash flow in some months was resolved by the use of bank overdraft credit within the credit lines the company had arranged with financing banks for these cases. At the end of the year, the company had no outstanding credit; the subsidiary ŠKODA SLOVAKIA, a.s. had drawn on a credit of EUR 1 million. The company s financial stability was also contributed to by the reduction in blocked resources of CZK 115 million to the final amount of CZK 272 million. The overall balance of financial resources at the beginning and the end of the year remained virtually unchanged, i.e., around CZK 450 million. Structure of the consolidated group s revenues by segment in 2014 (IFRS) Structure of the consolidated group s revenues by segment in 2010 2014 (IFRS) 11,6 % Spent Nuclear Fuel Storage 4,5 % Other 48,1 % Investment Engineering 19,8 % NPP Equipment 6,7 % Spent Nuclear Fuel Storage 2,2 % Other 14,7 % NPP Equipment 21,2 % NPP Services 15,2 % NPP Services 56,1 % Investment Engineering 32 Comments on Financial Results

The volume of receivables past due is insignificant; at the end of the year their value was CZK 6 million, which represents a year-on-year decrease of CZK 11 million. By working well with the payment terms and conditions in customer and supplier contracts, we managed to improve the ratio between advanced payments received and provided from 2.6 on December 31, 2013, to 3.4 on December 31, 2014. Last year, dividends were paid to the shareholder, OMZ B.V., as planned, i.e., in the amount of CZK 59 million. The financial position of ŠKODA JS a.s. remained very good in 2014, and all liabilities were settled by their due dates. As in previous years, both bidding and implementation of business cases required the issuing of a number of banking instruments in favor of the company s business partners. New bank guarantees were issued within the lines established by ŠKODA JS a.s. with Komerční banka, a.s., Citibank Europe, plc., Československá obchodní banka, a.s. and Expobank, a.s. These lines are regularly renewed on a yearly basis. With respect to the company s financial needs, limited by the volume of individual lines as well as by the changing-in-time approach of individual banks to clients whose business activities relate to the nuclear power industry, the company in the long run prefers cooperation with several banking houses. Export financing by means of export customer credits is a condition for the successful implementation of our projects in Ukraine. With the support of Czech Export Bank, a.s. and the Export Guarantee and Insurance Corporation, a.s., ŠKODA JS a.s. executed a number of business cases with a total value of approx. CZK 1.5 billion in the past years. In connection with this, at the 19th Exporter of the Year contest, ŠKODA JS a.s. took 1st place in the category The Best Export Transaction Supported by the State. In the past 20 years, our company s exports to multiple countries, financed with support from the state, never reported any default. Based on the aforementioned successes, we expected this export program and its financing to continue. Last year, the company agreed with the above-mentioned agencies Structure of the consolidated group s revenues by destination in 2014 (IFRS) Structure of the consolidated group s revenues by destination in 2010 2014 (IFRS) 0,2 % Asia 1,0 % Asia 49,1 % Europe 50,6 % 61,2 % Czech Republic Europe 37,8 % Czech Republic ŠKODA JS a.s. Activity Report 2014 33

on the provision of credit for the Ukrainian company GP NAEK Energoatom in connection with the supply of LKP-M drives for Unit 1 of the Zaporozhe nuclear power plant. Unfortunately, due to the continuing negative rating of the Ukrainian territory by specialized banking institutions for the state support for exports, we did not manage to arrange the funding of these export contracts to our satisfaction, and a payment schedule had to be agreed upon in an amount exceeding CZK 300 million. This debt was gradually settled according to the payment schedule by April 30, 2015. Further continuation of this program is very uncertain at this point. This could have a negative impact on the development of the company s revenues and economic results. RENOMIA, a.s., the largest Czech insurance broking company, represents our company in negotiations with insurance companies, activities related to insurance risk analysis as well as insurance program administration. In cooperation with this broking company, basic insurance contracts, such as proprietary insurance and liability insurance, are renewed and streamlined on a regular basis, and specific types of construction-assembly or professional insurance for selected projects are provided. Hedging Exchange Rate Risks ŠKODA JS a.s. exports a large portion of its products and services abroad and the majority of income from these exports is collected in EUR. In the long term, income in EUR exceeds expenditures in this currency and that is why we have to sell part of the EUR income for CZK. Apart from ordinary direct transactions, such as payments of receivables and payables in foreign currencies, the financial results of the last year were also influenced by FX transactions, i.e., the sale and purchase of foreign currencies on financial markets. Most of these were financial derivatives currency forwards and swaps representing the sale or purchase of EUR for CZK. In 2014, the average EUR/CZK exchange rate (27.533) vs. 2013 (25.974) increased by about 6%. Such a significant weakening of the Czech crown impacted negatively the result of FX transactions settled in 2013. The EUR/CZK exchange rate at the end of 2014 (27.725) was 1.1% higher compared to the exchange rate at the end of the year before (27.425). This relatively slight weakening of the Czech crown was negatively reflected in the assessment of unsettled derivatives existing as of December 31, 2014. For the reasons described above, the FX transactions executed in 2014 resulted in a loss amounting to CZK -45.5 million. A larger part of the accounted loss resulted in decreased revenues from specific contracts (CZK -43.9 million), where the hedge accounting principles were applied and therefore the company s operating profit decreased. The remaining part of the loss from executed FX transactions (CZK -1.5 million) was included in the financial results, and was the result of transactions classified as trading derivatives. In 2014, the balance between revenue and expenses related to operating activities in EUR was about EUR +18.7 million. Unlike FX transactions, the increased value of EUR in relation to CZK had a positive effect on the said balance in EUR. As the average EUR/CZK exchange rate in 2014 was about CZK 1.56 higher compared to 2013, the value of the balance in EUR converted to CZK increased by CZK +29.2 million. This foreign exchange profit in 2014 compensated a large part of the loss from FX transactions. The balance between sales and purchases of foreign currencies in 2014 totaled approximately CZK 640 million, sales of foreign currencies significantly exceeding their purchases. The total nominal turnover of all FX transactions settled in 2014 (i.e., the sum of their absolute values) amounted to approx. CZK 2.33 billion. To a much lesser degree, foreign currencies were also purchased or sold at the prevailing market exchange rate. These spot transactions represented the sale of foreign currencies in the equivalent of approx. CZK 13 million. 34 Comments on Financial Results

The nominal value of unsettled financial derivatives as of December 31, 2014 totaled about CZK 657 million. This meant that the company was obliged to sell about EUR 24 million for CZK. The market valuation of these unsettled derivatives amounted to CZK -8.2 million as of December 31, 2014, accounting for a loss of about -1.2% compared to the total nominal value (for comparison - at the end of 2013, it was CZK -34.3 million and -3.8%). As already mentioned, the negative valuation resulted from further weakening of CZK in 2014. The valuation of the larger part of unsettled derivatives, classified as hedge derivatives (CZK -7.9 million) was, in compliance with the principles of hedge accounting, accounted in capital funds as a valuation difference from assets revaluation and thereby it did not affect the financial result of 2014. The remaining smaller part of unsettled derivatives valuation concerned trading derivatives and it affected the financial result of 2014 by CZK -0.3 million. Conclusion In 2014, ŠKODA JS a.s. achieved economic results that corresponded with the situation on the market. The results were very similar to those in the previous year, also unfavorable for the nuclear power industry. Despite this fact, due to the newly concluded contracts, it is realistic for the company to increase its revenues and thus achieve a better economic result in 2015. What is positive is the company s stable financial situation described above. Jan Kleisner Finance Director ŠKODA JS a.s. Activity Report 2014 35

Auditor s Report (According to CAS) KPMG Česká republika Audit, s.r.o. Pobřežní 648/1a 186 00 Praha 8 Česká republika Telephone +420 222 123 111 Fax +420 222 123 100 Internet www.kpmg.cz This document is an English translation of the Czech auditor s report. Only the Czech version of the report is legally binding. Independent Auditor s Report to the Shareholder of ŠKODA JS a.s. We have audited the accompanying financial statements of ŠKODA JS a.s., which comprise the balance sheet as of 31 December 2014, and the income statement, the statement of changes in equity and the cash flow statement for the year then ended, and the notes to these financial statements including a summary of significant accounting policies and other explanatory notes. Information about the company is set out in Note 1 to these financial statements. Statutory Body s Responsibility for the Financial Statements The statutory body of ŠKODA JS a.s. is responsible for the preparation of financial statements that give a true and fair view in accordance with Czech accounting legislation and for such internal controls as the statutory body determines are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Act on Auditors and International Standards on Auditing and the relevant guidance of the Chamber of Auditors of the Czech Republic. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of ŠKODA JS a.s. as of 31 December 2014, and of its financial performance and its cash flows for the year then ended in accordance with Czech accounting legislation. Prague 9 March 2015 Ing. Karel Růžička KPMG Česká republika Audit, s.r.o. Partner Licence number 71 Licence number 1895 36 Auditor s Report

Financial Statements of ŠKODA JS a.s. According to CAS

Income statement for the year ended 31 December 2014 (in thousands of Czech Crowns) Ident. 2014 2013 I. Revenue from goods 5 092 A. Cost of goods sold 5 092 II. Revenue from production (L.05+06+07) 2 890 769 3 128 181 II. 1. Revenue from own products and services 2 935 290 3 073 186 II. 2. Change in inventory of own production -57 006 23 022 II. 3. Own work capitalised 12 485 31 973 B. Cost of sales (L.09+10) 1 975 450 2 192 202 B. 1. Materials and consumables 604 808 618 497 B. 2. Services 1 370 642 1 573 705 + Added value (L.03+04-08) 915 319 935 979 C. Personnel expenses (L.13 to 16) 648 978 690 377 C. 1. Wages and salaries 473 526 503 782 C. 2. Remuneration of board members 4 120 5 973 C. 3. Social security and health insurance expenses 153 896 162 568 C. 4. Social expenses 17 436 18 054 D. Taxes and charges 911 1 007 E. Depreciation of intangible and tangible fixed assets 51 046 43 647 III. Proceeds from disposals of fixed assets and raw material (L.20+21) 2 736 3 139 III. 1. Proceeds from disposals of fixed assets 778 349 III. 2. Proceeds from disposals of raw material 1 958 2 790 F. Net book value of fixed assets and raw material sold (L.23+24) 792 2 257 F. 1. Net book value of fixed assets sold 4 F. 2. Raw materials sold 792 2 253 G. Change in provisions and adjustments relating to operating activity and change in complex prepaid expenses 27 348 63 812 IV. Other operating revenues 19 220 18 314 H. Other operating expenses 104 208 69 077 * Operating profit (loss) 103 992 87 255 IX. Revenue from revaluation of securities and derivatives 1 037 584 L. Expenses for revaluation of securities and derivatives 2 872 12 838 M. Change in provisions and adjustments relating to financial activity 21 548 X. Interest revenue 28 473 N. Interest expense 1 566 120 XI. Other financial revenues 10 359 71 479 O. Other financial expenses 32 988 87 760 * Profit (loss) from financial operations -47 550-28 182 Q. Income tax on ordinary profit (loss) (L.50+51) 20 103 11 198 Q. 1. -current 25 232 15 901 Q. 2. -deferred -5 129-4 703 ** Profit (loss) on ordinary activities after tax 36 339 47 875 *** Profit (loss) for the accounting period 36 339 47 875 **** Profit (loss) before tax 56 442 59 073 Note: The above statements represent only the selected part of the financial statements. The complete financial statements including notes are available in the seat of the company and were properly published at commercial register. 38 Financial Statements of ŠKODA JS a.s. (According to CAS)

Cash flow statement for the year ended 31 December 2014 (in thousands of Czech crowns) Ident. 2014 2013 P. Cash and cash equivalents, beginning of period 424 237 874 108 Net operating cash flow Z. Accounting profit (loss) from ordinary activitie 56 442 59 073 A. 1. Non-cash transactions 126 049 92 755 A. 1.1. Depreciation of fixed assets 51 046 43 647 A. 1.2. Change in: 48 896 63 812 A. 1.2.2. provisions and other adjustments 48 896 63 812 A. 1.3. Profit(-) Loss(+) on sale of fixed assets -778-345 A. 1.6. Expense and revenue interests accounted for 1 538-353 A. 1.7. Other non-cash transactions 25 347-14 006 A*. Net operating cash flow before financial items, 182 491 151 828 changes in working capital and extraordinary items A. 2. Changes in working capital -74 988-285 461 A. 2.1. Change in receivables from operating activities and deferrals -462 034 213 585 A. 2.2. Change in short-term liabilities from operating activities and accruals 229 297-482 969 A. 2.3. Change in inventories 157 749-16 077 A.** Net operating cash flow before financial balances, tax and extraordinary items 107 503-133 633 A. 3. Interest paid excluding amounts capitalised -1 566-120 A. 4. Interest received 28 473 A. 5. Income tax paid on ordinary income and income tax relating to prior periods 42 849-97 652 A.*** Net operating cash flow 148 814-230 932 Investment activity B. 1. Acquisition of fixed assets -63 476-204 134 B. 1.1. Acquisition of tangible fixed assets -58 795-156 327 B. 1.2. Acquisition of intangible fixed assets -4 681-12 107 B. 1.3. Acquisition of long-term investments 0-35 700 B. 2. Proceeds from sales of fixed assets 778 349 B. 2.1. Proceeds from sales of tangible and intangible fixed assets 778 349 B.*** Net cash flow from investment activity -62 698-203 785 Financial activity C. 1. Change in long-term liabilities and bank loans -46 384 46 384 C. 2. Increase and decrease in equity from cash transactions -59 840-61 538 C. 2.5. Payments from funds created from net profit -960-2 198 C. 2.6. Dividends paid and profit shares including withholding tax paid -58 880-59 340 C.*** Net cash flow from financial activity -106 224-15 154 F. Net increase or decrease in cash balance -20 108-449 871 R. Cash and cash equivalents, end of period 404 129 424 237 Note: The above statements represent only the selected part of the financial statements. The complete financial statements including notes are available in the seat of the company and were properly published at commercial register. ŠKODA JS a.s. Activity Report 2014 39

Balance sheet as at 31 December 2014 (in thousands of Czech Crowns) Ident. ASSETS 2014 2013 Gross Adjust. Net Net TOTAL ASSETS (L.02+03+31+63) 4 784 836-1 551 674 3 233 162 3 076 702 B. Fixed assets (L.04+13+23) 2 022 072-1 431 968 590 104 683 825 B. I. Intangible fixed assets (L.05 to 12) 121 224-96 510 24 714 25 236 3. Software 97 361-76 492 20 869 22 464 4. Intellectual property rights 21 637-19 827 1 810 2 218 6. Other intangible fixed assets 191-191 7. Intangible fixed assets under construction 2 035 2 035 554 B. II. Tangible fixed assets (L.14 to 22) 1 810 165-1 313 910 496 255 494 270 2. Buildings 105 498-21 408 84 090 77 792 3. Plant and equipment 1 652 703-1 291 257 361 446 366 018 6. Other tangible fixed assets 1 863-1 245 618 683 7. Tangible fixed assets under construction 50 101 50 101 47 261 8. Advance payments for tangible fixed assets 2 403 9. Adjustments to acquired fixed assets 113 B. III. Long-term investments (L.24 to 30) 90 683-21 548 69 135 164 319 B. III. 1. Equity investments subsidiaries 9 204 9 204 9 104 2. Equity investments associated companies 35 700-21 548 14 152 109 436 3. Other long-term securities and ownership interests 45 779 45 779 45 779 C. Current assets (L.32+39+48+58) 2 738 030-119 706 2 618 324 2 347 807 C. I. Inventories (L.33 to 38) 1 269 880-118 914 1 150 966 1 268 566 C. I. 1. Raw materials 156 373-54 004 102 369 208 822 2. Work-in-progress and semi-finished products 865 043-64 910 800 133 795 902 6. Advance payments for inventories 248 464 248 464 263 842 C. II. Long-term receivables (L.40 to 47) 151 728 151 728 185 679 C. II. 1. Trade receivables 117 024 117 024 149 946 8. Deferred tax asset 34 704 34 704 35 733 C. III. Short-term receivables (L.49 to 57) 912 293-792 911 501 469 325 C. III. 1. Trade receivables 903 384-783 902 601 358 374 4. Receivables from shareholders/members 21 450 6. Tax receivables 5 515 5 515 84 901 7. Short-term advances paid 660 660 877 8. Estimated receivables 1 381 1 381 1 628 9. Other receivables 1 353-9 1 344 2 095 C. IV. Short-term financial assets (L.59 to 62) 404 129 404 129 424 237 C. IV. 1. Cash 1 666 1 666 1 744 2. Bank accounts 402 463 402 463 422 493 D. I. Deferrals (L. 64+65+66) 24 734 24 734 45 070 D. I. 1. Prepaid expenses 24 734 24 734 45 070 Note: The above statements represent only the selected part of the financial statements. The complete financial statements including notes are available in the seat of the company and were properly published at commercial register. 40 Financial Statements of ŠKODA JS a.s. (According to CAS)

Ident. LIABILITIES 2014 2013 TOTAL LIABILITIES AND EQUITY (L.68+89+122) 3 233 162 3 076 702 A. Equity (L.69+73+80+83+87+88) 1 456 522 1 444 107 A. I. Registered capital (L.70+71+72) 550 000 550 000 A. I. 1. Registered capital 550 000 550 000 A. II. Capital contributions (L.74 to 79) 99 556 63 640 A. II. 1. Premium 111 696 111 696 2. Other capital contributions 50 50 3. Revaluation of assets and liabilities -12 190-48 106 A. III. Funds from profit (L.81+82) 114 421 112 881 A. III. 1. Reserve fund 111 472 111 472 2. Statutory and other funds 2 949 1 409 A. IV. Retained earnings (L.84+85+86) 656 206 669 711 A. IV. 1. Retained profits 656 206 669 711 A. V. 1. Profit (loss) for the current period (+/-) 36 339 47 875 B. Liabilities (L.90+95+106+118) 1 709 887 1 608 230 B. I. Provisions (L.91 to 94) 287 525 205 457 4. Other provisions 287 525 205 457 B. II. Long-term liabilities (L.96 to 105) 479 318 413 279 B. II. 1. Trade payables 61 596 72 403 5. Long-term advances received 417 704 339 949 9. Other payables 18 927 B. III. Short-term liabilities (L.107 to 117) 943 044 943 110 B. III. 1. Trade payables 364 287 340 342 3. Liabilities - associated companies 83 300 5. Payables to employees 29 164 50 326 6. Payables to social security and health insurance 15 684 25 739 7. Tax liabilities and subsidies 19 821 11 771 8. Short-term advances received 417 950 361 834 10. Estimated payables 87 790 35 725 11. Other payables 8 348 34 073 B. IV. Bank loans and overdrafts (L.119 to 121) 46 384 2. Short-term bank loans 46 384 C. I. Accruals (L.123+124) 66 753 24 365 C. I. 1. Accrued expenses 175 2. Deferred revenues 66 753 24 190 Note: The above statements represent only the selected part of the financial statements. The complete financial statements including notes are available in the seat of the company and were properly published at commercial register. (in thousands of Czech Crowns) ŠKODA JS a.s. Activity Report 2014 41

Auditor s Report (According to IFRS) KPMG Česká republika Audit, s.r.o. Pobřežní 648/1a 186 00 Praha 8 Česká republika Telephone +420 222 123 111 Fax +420 222 123 100 Internet www.kpmg.cz This document is an English translation of the Czech auditor s report. Only Czech version of the report is legally binding. Independent Auditor s Report to the Shareholder of ŠKODA JS a.s. We have audited the accompanying consolidated financial statements of ŠKODA JS a.s., which comprise the consolidated statement of financial position as of 31 December 2014 the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated cash flow statement for the year then ended, and the notes to these consolidated financial statements including a summary of significant accounting policies and other explanatory notes. Information about the company is set out in Note 1 to these consolidated financial statements. Statutory Body s Responsibility for the Consolidated Financial Statements The statutory body of ŠKODA JS a.s. is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European Union and for such internal controls as the statutory body determines are necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with the Act on Auditors and International Standards on Auditing and the relevant guidance of the Chamber of Auditors of the Czech Republic. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements give a true and fair view of the financial position of ŠKODA JS a.s. as of 31 December 2014, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union. Prague 17 April 2015 Ing. Karel Růžička KPMG Česká republika Audit, s.r.o. Partner Registration number 71 Registration number 1895 42 Auditor s Report

Consolidated Financial Statements According to IFRS

Consolidated statement of financial position as at 31 December 2014 (in thousands of Czech Crowns) ASSETS 2014 2013 CURRENT ASSETS Cash and cash equivalents available cash 175 849 72 999 Cash and cash equivalents restricted cash 272 119 386 610 Accounts receivable financial 916 845 377 020 Receivables from long-term contracts 404 120 459 625 Inventories 122 930 233 371 Receivables from derivative transactions 0 583 Other accounts receivable non-financial 364 212 343 289 Other current assets financial 1 050 24 761 Other current assets non-financial 25 148 45 464 Total current assets 2 282 273 1 943 722 NON - CURRENT ASSETS Intangible assets 25 025 25 688 Property, plant and equipment 553 154 561 946 Available for sale financial assets 45 779 45 779 Investments in associates 14 152 109 436 Other non-current receivables financial 115 592 147 587 Total non current assets 753 702 890 436 TOTAL ASSETS 3 035 975 2 834 158 EQUITY AND LIABILITIES CURRENT LIABILITIES Payables financial 303 843 320 146 Payables from derivative transactions 8 204 33 962 Short-term bank loans and borrowings 27 725 46 384 Other payables financial 46 195 92 424 Other payables non-financial 821 164 520 767 Provisions 78 945 77 098 Total current liabilities 1 286 076 1 090 781 NON - CURRENT LIABILITIES Other non-current liabilities financial 46 985 71 150 Payables from derivative transactions 0 911 Other non-current liabilities non-financial 204 179 Deferred tax liability 8 209 5 826 Total non current liabilities 55 398 78 066 EQUITY Registered capital 550 000 550 000 Capital and other funds and reserves 217 436 190 749 Retained earnings 927 065 924 562 Total equity 1 694 501 1 665 311 TOTAL EQUITY AND LIBILITIES 3 035 975 2 834 158 Note: The above statements represent only the selected part of the financial statements. The complete financial statements including notes are available in the seat of the company and were properly published at commercial register. 44 Consolidated Financial Statements (According to IFRS)

Consolidated statement of comprehensive income for the year ended 31 December 2014 (in thousands of Czech Crowns) 2014 2013 Sales of goods, products and services 2 953 136 3 393 695 Sales 2 953 136 3 393 695 Cost of material and services -1 963 277-2 315 858 Change in finished goods and work in progress inventories 6 652 3 545 Capitalisation of property, plant and equipment 12 485 31 973 Payroll expenses -743 571-780 022 Depreciation and amortization -64 737-57 358 Other operating income 48 164 88 858 Other operating expense -149 206-182 696 Operating profit 99 646 182 137 Financial income 30 476 Financial expense -1 631-120 Share of profit or loss of Associates -11 983-9 565 Profit before tax 86 062 172 928 Corporate income tax -24 679-35 331 Profit after tax 61 383 137 597 Other comprehensive income: Foreign exchange gains/(losses) from translation of foreign operations 435 2 800 Gains/(losses) from hedging of cash flows 32 410-46 303 Corporate income tax relating to other comprehensive income items -6 158 8 798 Other comprehensive income after tax 26 687-34 705 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 88 070 102 892 Note: The above statements represent only the selected part of the financial statements. The complete financial statements including notes are available in the seat of the company and were properly published at commercial register. ŠKODA JS a.s. Activity Report 2014 45

Consolidated statement of changes in equity for the year ended 31 December 2014 (in thousands of Czech Crowns) Registered capital Statutory reserve fund Cumulative FX translation differences Cash Flow Hedges Retained earnings Balance at 1 January 2013 550 000 115 456 109 201 2 168 - -1 371 846 305 1 621 759 Profit for 2013 - - - - - - 137 597 137 597 Other comprehensive income Foreign exchange differences from recalculation - - - 2 800 - - - 2 800 Effective portion of changes in fair value - - - - -46 303 - - -46 303 of cash flow hedges Net change in fair value of cash flow hedges - - - - - - - - reclassified to profit or loss Income tax on changes in fair value - - - - 8 798 - - 8 798 of cash flow hedges Total other comprehensive income - - - 2 800-37 505 - - -34 705 Transactions with owners booked in equity Contribution from profit to statutory reserve fund - - - - - - - - Paid dividends - - - - - - -59 340-59 340 Total transactions with owners - - - - - - -59 340-59 340 Balance at 31 December 2013 550 000 115 456 109 201 4 968-37 505-1 371 924 562 1 665 311 Total Capital and other contributions Revaluation Registered capital Statutory reserve fund Cumulative FX translation differences Cash Flow Hedges Capital and other contributions Revaluation Retained earnings Balance at 1 January 2014 550 000 115 456 109 201 4 968-37 505-1 371 924 562 1 665 311 Profit for 2014 - - - - - - 61 383 61 383 Other comprehensive income Foreign exchange differences from recalculation - - - 435 - - - 435 Effective portion of changes in fair value - - - - 32 410 - - 32 410 of cash flow hedges Net change in fair value of cash flow hedges - - - - - - - - reclassified to profit or loss Income tax on changes in fair value - - - - -6 158 - - -6 158 of cash flow hedges Total other comprehensive income - - - 435 26 252 - - 26 687 Transactions with owners booked in equity Contribution from profit to statutory reserve fund - - - - - - - - Paid dividends - - - - - - -58 880-58 880 Total transactions with owners - - - - - - -58 880-58 880 Balance at 31 December 2014 550 000 115 456 109 201 5 403-11 253-1 371 927 065 1 694 501 Total Note: The above statements represent only the selected part of the financial statements. The complete financial statements including notes are available in the seat of the company and were properly published at commercial register. 46 Consolidated Financial Statements (According to IFRS)

Consolidated cash flow statement for the year ended 31 December 2014 (in thousands of Czech Crowns) 2014 2013 Profit before tax 86 062 172 928 Depreciation and amortisation 64 737 57 358 Profit from sale of fixed assets and financial investments -778-601 Interest paid / (interest received) 1 601-356 Net change in provisions 1 847-59 880 Interest received 30 476 Interest paid -1 631-120 Share of profit / loss of associates 11 983 9 565 Other non-monetary transactions 38 488 16 551 Income tax paid 41 329-97 883 Operating cash flow before working capital changes 243 668 98 038 Changes in working capital: Change in receivables -550 700 224 856 Change in inventories 110 441-62 634 Change in payables -31 094-198 840 Change in other current assets and liabilities 381 495-308 727 Change in restricted cash 114 491-200 059 Total cash flow from operations 268 301-447 366 Investing activites: Acquisition of fixed assets -63 639-172 026 Acquisition of investments in associates 0-35 700 Proceeds from sale of fixed assets 778 605 Total cash flow from investing activities -62 861-207 121 Financing activites: Net change in borrowings and long term liabilities -43 710 64 046 Payment of dividends -58 880-59 340 Total cash flow from financing activities -102 590 4 706 Net change in cash and cash equivalents 102 850-649 781 Cash and cash equivalents (available cash) at the beginning of the period 72 999 722 780 Cash and cash equivalents (available cash) at the end of the period 175 849 72 999 Note: The above statements represent only the selected part of the financial statements. The complete financial statements including notes are available in the seat of the company and were properly published at commercial register. ŠKODA JS a.s. Activity Report 2014 47

Contact Details ŠKODA JS a.s. Orlík 266/15, Bolevec 316 00 Plzeň Czech Republic Tel.: +420 378 041 111 Fax: +420 377 524 755 E-mail: info@skoda-js.cz Internet: www.skoda-js.cz Company Reg. No.: 25 23 57 53 VAT Reg. No.: CZ25235753 Commercial Register: Registration Court in Plzeň, Part B, Insert 811 Bank: Komerční banka a.s., pobočka Plzeň, Goethova 1, 309 95 Plzeň Account No. (CZK): 74303311/0100 IBAN CZ12 0100 0000 0000 7430 3311 Account No. (USD): 4848440247/0100 IBAN CZ09 0100 0000 0048 4844 0247 Swift: KOMB CZ PP Account No. (EUR): 4848610277/0100 IBAN CZ15 0100 0000 0048 4861 0277 Swift: KOMB CZ PP 48 Název kapitoly

www.skoda-js.cz