CEZ Group

The Supervisory Board of CEZ has today elected two new members of CEZ’ Board of Directors and discussed a proposal of Mr. Daniel Benes, the new Chairman of the Board of Directors and Chief Executive Officer of CEZ, for corporate organization structure changes that should take effect from January 1, 2012. This is the first step to slim down and render more efficient the company’s line management at the top level and to prepare the CEZ Group for the consolidation of its subsidiary firms’ activities too. Additional restructuring measures aimed to reduce the number of divisions and top managerial posts is planned for mid next year, when the current 11 divisions should be restructured to form just 8 or possibly 9. At today's session of the Supervisory Board, Mr. Martin Riman announced his resignation as member of the Supervisory Board and member of the Audit Committee with effect from December 20, 2011.

The Board of Directors of CEZ has elected Daniel Benes, former Vice-Chairman of the Board and Executive Director of CEZ, as its Chairman. He has replaced Martin Roman who resigned yesterday. Daniel Benes has thus also become CEZ’ Chief Executive Officer. CEZ’ Supervisory Board has today also co-opted Martin Roman as its new member and elected him Chairman of the Supervisory Board.

The Net Profit of CZK 23.9 billion recorded by the ČEZ Group for the first six months of this year have already exceeded the profit generated by its much bigger rival, the German-based group of E.On (EUR 948 million, equivalent to some CZK 22.8 billion). Although the energy sector is still affected by the global crisis aftermath connected with low electricity prices, ČEZ has raised its expected 2011 profit level to CZK 40.6 billion.

The CEZ Group is going to acquire Energotrans, a company supplying heat from Melnik to Prague, and to sell its 50% equity stake in MIBRAG, a mining corporation, to the other shareholder, holding contractual right, Energeticky a prumyslovy holding. This transaction has been approved by all competent CEZ Group’s bodies.

According to the European Commission’s announcement of today, CEZ has been fully cleared of several serious accusations. Clear evidence has been discovered that CEZ has not and could not have manipulated with electricity prices, has not engaged in a cartel with anyone, nor has it been involved in limiting the trade with brown coal, which contrasts with accusations of the same malpractice recently raised against Czech Coal by numerous customers of the company.

An international team of nuclear installation safety experts, led by the International Atomic Energy Agency (IAEA), has commended the Dukovany Nuclear Power Plant (NPP) in the Czech Republic for its safety practices and has also made a series of recommendations to reinforce them.

The International Atomic Energy Agency (IAEA), at the request of the Government of the Czech Republic, has assembled an international team of experts to conduct an Operational Safety Review (OSART) of the Dukovany Nuclear Power Plant (NPP) in Dukovany, Czech Republic.

The CEZ Group’s Net Profit for the first quarter of this year remained at last year’s levels, declining by only 2 percent (CZK 300 million). CEZ still foresees to meet the profit target for 2011 (expected to reach CZK 40.1 billion), which is still considerably affected by the subsiding crisis connected with low power prices.

In this year, ČEZ will install charging stations in 50 locations, mostly near major towns in the Czech Republic. The stations will be not only in Prague but also in Central Moravia, South Moravia, West and East Bohemia.

The CEZ Group’s Net Profit exceeded expectations by half a billion, reaching CZK 47.2 billion. The CEZ Group also improved its last year’s results in terms of Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA), which exceeded CZK 89.1 billion. Although the results of 2010 are, in line with expectations, lower than in 2009, CEZ eventually delivered a profit higher than planned to its shareholders.