Investor Presentaiton

7 Decarbonisation will have to focus on replacing coal and oil in energy production, industry & transport; while renewables will stay constrained. Czech current emissions and targets lag behind those of the EU... EU GHG (ETS) emission reduction targets ESR1 RES Share in Gross Final Consumption RES Share in Transport Actual 2019 CR/EU 34% / 24% vs 1990 level +10% / -10% vs 2005 level Target 2030 CR/EU 30% / 55%2 vs 1990 level -26% / -40%2 vs 2005 level ...with Czech energy consumption remaining largely reliant on coal... 2020, TWh 54 104 96 95 170 16.2% /19.7% 22% / 32%3 4 7.8% / 8.9% 14% / 14%3 Other -16 Power balance¹ RES Natural Gas Nuclear Oil Coal ...given there is limited wind and solar potential (capacity factors)... Wind Potential Solar Potential ...requiring gas to play a crucial role in achieving the CR's targets... Actual 2019 Other 3% Projected 2030 CR: >20% effective supply < 2.000 hours p.a. Weak potential Coal 54% CR: >20% effective supply < 1.200 hours p.a. Strong potential Coal 17% Gas 34% RES 0 RES 9% 33% Gas 50% 9 Source: EEA Europa, Eurostat, EC materials. Notes: 1) While EU ETS is a joint emissions trading scheme and target is common for whole EU, Effort Sharing Regulation (ESR) sets individual targets for each country in non-ETS emissions (sectors not regulated by EU ETS scheme). 2) Past EU 2030 overall target was 40% reduction and all other targets (CR EU GHG and all ESH targets) link to that. In line with Green deal the overall EU target changed to 55% reduction by 2030 and other targets need to get changed. Current indication of ESH 2030 targets mentions ca -35%, CR specific can be expected around 27-30%. 3)The figures include also bonuses for advanced biofuels in the form of doubling the figures of advanced biofuels. In reality the Transport RES target value would be ca 10.5%. EC says CR RES targets in first line are unambitious. gasnet.cz 40

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