Investor Presentaiton
KEY SUBSTANTIVE AND GENERAL FINANCIAL
OBJECTIVES IN THE UPDATED STRATEGY
Strategic Priorities
Efficient Operation,
Optimum Utilization
& Development of
Generation Portfolio
Modern
Distribution & Care
for Customers'
Energy Needs
New Energy Sector
Development in
Czechia
Energy Services
Development in
Europe
Divestment
Strategy
Key Substantive Objectives and Ambitions for 2025
■ Safe and efficient generation by nuclear plants (WANO's assessment of ČEZ's nuclear power plants above the
global nuclear operators median; annual generation above 31.5 TWh).
Long-term NPP operation (Temelín units at least until 2060 and 2062, Dukovany units until 2045 and 2047).
I▪ Value maximization in mining and conventional generation, efficient generation by power and heating
plants in mining regions. Controlled phaseout of plants outside mining regions.
"
Negotiating a framework for the construction of a new nuclear unit at Dukovany, which would cover the regulatory
and market risks of the project. Commencing project preparations according to the approved contractual framework.
■ Distribution CZ: Increasing revenues by way of increased investments in the context of changes
induced by decentral energy; increasing efficiency and reducing operating expenses.
■ Sales CZ: Maintaining current profitability by way of: maintaining the current customer base, increasing
customer satisfaction, and expanding offerings in the portfolio of noncommodity products and services.
■ ESCO CZ and SK: 25%+ share in the growing market with target EBITDA margin > 7%.
■RES CZ: Playing a major role in the growth of renewables in Czechia. Total potential for Czech solar
installed capacity estimated at up to 5 GW, including about 0.5 GW on land currently owned by CEZ
Group.
☐
▪ Continuing with quick organic and acquisition expansion in Germany, northern Italy, and Poland.
Maximizing synergies from the consolidation of activities in target markets.
Becoming a Top 3 ESCO player in these markets by 2025, with target EBITDA margin > 7%.
■ Return of capital invested in RES assets in Germany and France.
E
Additional 2025
EBITDA* Goal
(CZK bn)
+1 to +2
beyond the effect
of market
prices
**
+2 to +4
+2 to +3
+2 to +3
• Completion of sale of assets in Bulgaria, sale of generation and distribution assets in Romania, Poland, and Turkey. The goal is to
sell those assets by the end of 2022. The assets' contribution to CEZ Group's annual 2018 EBITDA was CZK 5.5 bn.
The goal of additional 2025 EBITDA* demands significant investments in new assets, primarily in RES in Czechia, ESCO abroad, and distribution in
Czechia. Investments in RES development in Czechia and ESCO development will be financed by income from divestments.
12
*Increase in annual EBITDA as compared to today; **Current market prices of electricity and emission allowances indicate
an additional CZK 7 to 10 bn.
CEZ GROUPView entire presentation