CGNI Financial and ESG Update

A resilient economy with below average but steadily growing indebtedness, an unemployment among the lowest in the EU, however with relatively high inflation and interest rates, rated Aa3 / AA- / AA- GDP / Head & GDP Real Growth, 2019-2023 Inflation Rate, 2019-2023 Avg. inflation rate of 7.2% vs. 4.1% in the EU(1) 15,1% 15,00% Avg. real growth of 0.7% vs 1.1% in the EU(1) Czech Macro Developments Robust medium-term growth dynamics and broad economic resilience in the midst of current geopolitical crisis 11,4% Record levels of employment 84.8% in the EU(1) Liquid and well capitalized banking system Central bank reacted to rising inflation figures by a sharp tightening of its monetary policy Significantly reduced reliance on Russian natural gas over 2022 Rating agencies have reaffirmed their views on the Czech economy Rating Agencies' Views MOODY'S "Czech Republic's credit profile is supported by its fundamental credit strengths ... competitive economy, a "1 Aa3 (Negative) strong institutional set-up, favourable fiscal metrics... Moody's, May 2023 10,00% 532 600 3,0% 509 4% 3,5% 2% 400 2,5% 7,2% 448 456 0% 5,00% 435 0,2% 2,8% 3,2% 3,8% 6,6% -2% 200 -4% 2,2% 1,3% -5,5% 0,9% 0 -6% 0,00% 2019A 2020A 2021A 2022A 2023E 2019A 2020A 2021A I Inflation (CPI, % p.a.) 2022A 2023E Interest Rate (% p.a.) I GDP per head ($ Intl. PPP) GDP Real Growth (% p.a.) Unemployment Rate, 2019-2023 Public Debt as % of GDP, 2019-2023 6.4% in the EU(1) 2,0% 2,6% 2,8% 2,4% 2,7% 46,7% 42,0% 44,1% 37,6% 30,0% S&P Global Ratings AA- (Stable) "I .... solid government and external balance sheets... improved energy security..." S&P Global Ratings, April 2023 2019A 2020A 2021A Unemployment Rate (%). 2022A 2023E 2019A 2020A 2021A 2022A Debt-to-GDP Ratio (%) 2023E 9 Source: Rating Agency reports, EIU. Note: (1) EU considers EU-27 as of 2020. ...underpinned by a record of credible macroeconomic Fitch Ratings and monetary policies, a robust institutional framework, AA- (Negative) and strong external finances..." Fitch Ratings, March 2023 gasnet.cz 6

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