CEZ will report its consolidated IFRS FY2005 figures on Tuesday, March 21 at 9:45am CET. CEZ already reported its FY2005 unconsolidated numbers at the end of February. Note that the FY consolidated numbers will be reported under IFRS for the first time hence the y/y comparison is less meaningful even though we tried to adjust last year's CAS numbers to IFRS. Consolidated numbers are becoming more important with the growing number of acquisitions. The consolidated numbers will, for the first time, include Romanian distribution company Electrica Oltenia in 4Q05. Severoceske doly, the coal mines which were acquired last year, will be consolidated for the whole year.
The group’s margins should be positively impacted by continued restructuring of CEZ’s operations in the Czech Republic, nevertheless will slightly be offset by the consolidation of the Bulgarian and Romanian distributors, which have lower margins compared to CEZ. The top line should be positively affected by increasing electricity prices. We expect net income to rise by 49.9% to CZK 19.58bn; the number will also include CZK 1.2bn profit from the sale of CO2 emission credits. CEZ will hold a conference call to discuss its consolidated results on Tuesday, March 21 at 12:30pm CET. The dial-in number is +44 207 162 0025. We are looking for more news regarding CEZ’s expansionary plans and company guidance for 2006.