epifannualreport

EP Infrastructure, a.s. 
Annual financial report for the year 
2022 

CONTENT 
 
I. 
Introduction by the Chairman of the Board of Directors 
 
II. 
Independent Auditor´s Report to the Annual Financial Report 
 
III. 
Other Information 
 
IV. 
Report on relations 
 
V. 
Consolidated Financial Statements and Notes to the Consolidated 
Financial Statements 
 
VI. 
Independent Auditor´s Report to the Statutory Financial Statements 
 
VII. 
Statutory Financial Statements and Notes to the Statutory Financial 
Statements 
 

I.

Introduction by the Chairman of the Board of Directors

INTRODUCTION BY THE CHAIRMAN OF THE BOARD OF DIRECTORS 
Dear Shareholders, Business partners, Colleagues and Friends,  
It is our pleasure to introduce to you the annual report 2022 of EP 
Infrastructure, a.s., which highlights 
our 
achievements 
and 
challenges 
in 
the 
past 
year. Despite 
the 
unprecedented 
circumstances 
brought 
about by the military aggression in Ukraine, we have remained steadfast in our commitment to provide 
reliable 
infrastructure solutions 
to 
our 
customers, contribute 
to 
Europe’s 
energy 
security 
and 
despite 
unfavourable 
external 
factors 
deliver 
excellent 
financial 
results. 
We 
have 
continued 
to 
invest 
in 
our 
assets, develop new projects, improve our operations and swiftly adopt 
to the new market conditions to 
ensure that we are able to meet the evolving needs of all our stakeholders. 
In 
this 
report, 
you 
will 
find 
a 
comprehensive 
overview 
of 
our 
performance, 
including 
our 
financial 
results, 
strategic 
initiatives, 
and 
sustainability 
efforts. 
We 
are 
proud 
to 
have 
achieved 
significant 
milestones 
in 
each 
of 
these 
areas, 
and 
we 
believe 
that 
they 
demonstrate 
our 
continued 
progress 
in 
consolidating our position as a leading infrastructure company in 
our region. 
The EPIF 
Group subsidiaries 
operate a 
transit gas 
pipeline, the 
most essential 
corridor for 
piped gas 
supplies to the Central 
European and Southern 
European regions irrespective 
of the gas source 
and flow 
pattern, and 
act as 
major distributors 
of natural 
gas and 
electricity in 
Slovakia. The 
EPIF Group 
also 
operates the 
largest gas 
storage capacities 
in Central 
Europe in 
Slovakia and 
Germany and 
is a 
significant 
heat distribution network operator and heat producer in the Czech Republic. 
Despite escalated geopolitical frictions and related energy market disruptions which adversely affected 
the results of the Gas 
Transmission segment, the EPIF Group demonstrated its 
resilience and achieved 
strong financial results. The business resilience 
stems from the diversification across 
the gas and power 
value chains 
and a high 
portion of revenues 
being regulated and 
contracted on a 
long-term basis. 
The 
substantial 
part 
of 
our 
revenue 
is 
dependent 
on 
already 
pre-booked 
capacities, 
such 
as 
ship-or-pay 
contracts for the Gas Transmission business, store-or-pay 
contracts for the Gas Storage business, fixed 
tariff components for the 
Gas and Power Distribution business 
and fixed heat price 
component for the 
Heat 
Infra 
business. 
The 
Gas 
Storage 
segment 
played 
the 
most 
essential 
role 
from 
a 
diversification 
perspective, 
as 
gas 
delivery 
insecurity 
and 
highly 
volatile 
commodity 
prices 
contributed 
to 
the 
outstanding Gas Storage performance that almost fully offset the Gas Transmission underperformance. 
The 
strong 
resilience 
of 
the 
reported 
results 
is 
underpinned 
by 
the 
strategic 
diversification 
of 
EPIF 
Group’s 
activities into 
four segments 
with strong 
natural hedges 
among them. 
In 2022, 
a meaningful 
negative 
correlation 
between 
gas 
transit 
and 
gas 
storage 
activities 
or 
an 
upside 
potential 
for 
power 
generating activities when gas price is under pressure became apparent. 
When 
it 
comes 
to 
financial 
results, 
the 
consolidated 
Adjusted 
EBITDA
1
 
for 
2022 
reached 
EUR 1 455 million, which 
is a 
14% increase 
compared to 
last year, 
while Adjusted 
Free Cash 
Flow
3 
slightly declined 
to EUR 
750 million 
from EUR 
785 million 
last year. 
The contribution 
of individual 
segments 
to 
EPIF 
Group 
financials 
substantially 
changed 
as 
outlined 
above. 
The 
share 
of 
the 
Gas 
Transmission 
segment 
further 
declined 
to 
18% 
of 
the 
Group 
proportionate 
Adjusted 
EBITDA 
(compared to 34% in 2021) due 
to decreased transmission and gas 
in-kind revenues. On the other hand, 
there was a relative increase in the share of the Gas Storage segment (to 29% from 17% in 2021 driven 
by well-priced fast cycle contracts in the last quarter) and the Heat Infra business (to 18% from 12% in 
2021 
due to 
favourable power 
spreads leading 
to 
higher power 
generation and 
strong 
grid-balancing 
services). The Gas 
and Power Distribution 
segment (with its 
share of 35% 
in the Group 
proportionate 
EBITDA) has proved to be a stable and reliable contributor to overall results 
(38% in 2021). 

 
Following 
the 
military 
invasion 
of 
Ukraine 
by 
the 
Russian 
Federation 
and 
subsequently 
imposed 
sanctions against the 
Russian Federation, almost 
all direct flows 
of Russian piped 
gas to 
Europe have 
been terminated. As a result, the overall volume of gas supplied from the Russian Federation to the EU 
and the UK in 2022 
decreased by 55% to 
approx. 67 bcm compared 
approx. 150 bcm in 
2021. Volumes 
in the pipeline operated 
by eustream, which is 
one of two major 
transit routes for Russian 
piped gas that 
haven’t been terminated, have also 
been affected. After the declaration 
of the force majeure 
event at the 
Sokhranivka Russian-Ukrainian connecting point 
in May 2022, volumes eustream’s pipeline have been 
substantially reduced. 
Since that 
moment, east 
to west 
gas flows 
via the 
Velke 
Kapusany connection 
point have oscillated around 37 
million cubic meters per day. 
In 2022, eustream transported 26 
billion 
cubic 
metres 
of 
natural 
gas, 
which 
was 
37% 
less 
year 
on 
year. 
Reduced 
gas 
flows 
and 
gas 
in-kind 
hedging weighed on eustream’s performance in 2022. Despite challenging market 
conditions, eustream 
continued with 
diversification, modernization 
and enhancement 
of its 
pipeline to 
maintain its 
pivotal 
role 
in 
gas 
transmission 
in 
Europe. 
In 
2022, 
eustream 
completed 
the 
strategic 
Slovakia 
– 
Poland 
interconnector, which now provides access to the Polish LNG market and represents another milestone 
enhancing energy security 
in Europe, while 
creating new 
business opportunities 
for eustream. Sufficient 
transit capacities at the 
Lanžhot entry/exit point 
and the new interconnection 
to Poland ensure readiness 
of eustream’s pipeline 
to accommodate flows irrespective of its source and 
flow direction and remains 
the best positioned to 
serve Ukraine’s gas import needs. 
Following the completion 
of the interconnector 
to 
Poland, eustream 
has 
connections with 
all neighbouring 
countries and 
does 
not require 
any major 
development capex for 
conventional transmission 
of natural gas. 
We are aware of reshaped 
political and 
market circumstances and are firmly committed to exploiting eustream’s 
strategic position and finding 
its 
new 
modus 
vivendi 
through 
cooperation/partnership, 
innovation/efficiency 
as 
well 
as 
client 
and 
product 
diversification 
(inter 
alia 
through 
hydrogen 
ready 
investments 
in 
its 
network) 
so 
that 
we 
maintain our integral role in gas transit in the CEE region. 
Market 
instability 
and 
gas 
supply 
insecurity 
following 
the 
Russian 
military 
invasion 
of 
Ukraine 
emphasized the paramount 
importance of the Gas 
Storage segment in 
our region as 
a provider of energy 
security. This segment plays a 
crucial role in 
mitigating gas supply 
disruptions, balancing seasonality 
of 
demand 
with 
peaks 
in 
winter, 
promoting 
competition 
by 
allowing 
access 
to 
multiple 
suppliers, 
increasing supplier 
independency and 
lastly in 
integrating intermittent 
renewable energy 
sources into 
the system. 
All these 
factors contributed 
to high 
demand for 
our services 
and drove 
up the 
storage prices, 
reaching record high 
levels and driving the 
segment’s outperformance 
in 2022. These 
factors are seen 
to be key drivers of 
demand for our services going forward. Therefore in 
2022, we continued to invest 
in the operational security, 
storage technology modernisation, automation enhancement and 
utilisation 
of collected information 
to further optimise 
our processes. We 
believe that our 
storage facilities (with 
overall 
storage capacity 
of 
almost 
62 
TWh) feature 
ample technical 
parameters to 
capture 
occurring 
opportunities on a 
turbulent market, and 
that the Storage 
Segment will play 
an increasingly important 
role in our operations, considerably contributing to our profits. 
Despite 
all 
market 
challenges 
and 
lower 
distribution 
volumes, 
the 
results 
of 
the 
Gas 
and 
Power 
Distribution 
segment 
remained 
relatively 
stable 
and 
resilient. 
In 
2022, 
SPP 
Distribúcia, 
the 
Slovak 
regulated natural monopoly, distributed 
more than 48 
TWh of natural 
gas, which was 
less than the 
long-
term average 
for Slovakia 
given by 
weather conditions 
coupled with 
industrial as 
well as 
households 
demand reduction. 
The decline 
in gas demand 
has been 
reported across 
the EU 
with an 
estimated decline 
by 
12% 
compared 
to 
the 
average 
demand 
calculated 
in 
the 
period 
2019 
to 
2021.
1
 
Stredoslovenská 
distribučná, the monopoly electricity 
distributor in central Slovakia, 
distributed 6.3 TWh of 
electricity 
1
 
Information about the 
EU gas 
demand is based 
on the data 
available at 

            https://www.bruegel.org/dataset/european-
          

            natural-gas-demand-tracker
          

            .
          

in 2022, which was 2% below the last year’s volume. Nevertheless, volumes of distributed commodity 
have limited 
impact on 
financial performance 
of DSOs 
as a 
bigger share 
of revenues 
is derived 
from 
fixed capacity 
payments, while 
the volume 
risk connected 
with gas 
and power 
distribution tariffs 
applies 
primarily 
to 
households 
and 
to 
a 
lesser 
extent 
to 
industrial 
customers. 
The 
transparent 
and 
stable 
regulatory framework has been confirmed by the Slovak regulator for 
the new regulatory period 2023-
2027, which provides a reasonable predictability 
of cash flows over that period. In 
terms of a decline in 
gas volumes, already experienced in 2022, the regulator shall compensate deviations in 
volumes in the 
distribution tariff with 
two-year lag. In 
terms of our 
robust distribution 
networks, we 
kept on renovating, 
reconstructing and 
increasing their 
efficiency. 
We 
aim to 
continuously reduce 
the number 
of leaks 
in 
the gas 
distribution network and 
ensure a 
high level of 
its security. 
When operating the 
backbone gas 
and electricity networks, we strive 
not only to ensure continuity 
of traditional distribution services but 
also to reflect modern 
trends such as deployment 
of smart meters and 
prepare our network 
for hydrogen 
distribution. Similarly to 
the previous year, the total 
capital expenditures incurred 
by the Gas 
and Power 
Distribution segment exceeded 
EUR 80 million in 2022. 
On a 
supply side, 
thanks to 
our conservative 
sourcing policy, we have 
been able 
to absorb 
the increasing 
number of 
regulated-price customers, 
whose 
original electricity 
suppliers had lost 
their ability 
to supply electricity. We gladly assumed 
responsibility 
and transferred these 
customers to our 
portfolio, although 
the short-term financial 
impact was slightly 
negative. 
The exceptional performance of the Heat 
Infra segment in 2022 was favourably 
affected by high power 
spreads that 
drove both 
power production 
and grid-balancing 
services, thus 
positively contributing 
to 
the 
transmission 
network 
stability 
in 
the 
Czech 
Republic. 
Electricity 
prices 
peaked 
in 
August 
and 
subsequently gradually 
decreased, however 
to still 
substantially higher 
levels in 
comparison to 
historical 
averages. As a result, the Heat Infra segment managed to maintain the volume of electricity production 
at 
2.5 TWh, 
broadly 
comparable 
level 
with 
prior 
year, 
confirming 
our 
position 
as 
a 
highly 
relevant 
power producer 
in 
the Czech 
Republic. The 
positive performance 
was underpinned 
by an 
increasing 
portion 
of 
biomass 
in 
our 
fuel 
mix 
after 
the 
recent 
refurbishment 
of 
our 
two 
boilers 
at 
Plzeňská 
teplárenská and United Energy in 2021, enabling a partial replacement of lignite through biomass. The 
implementation of projects aimed at reduction of our carbon exposure has also proved to be financially 
rewarding as 
the price 
of emissions 
has increased 
significantly recently. Despite 
increased cost 
pressures 
in 
the 
existing 
inflationary 
environment, 
we 
announced 
heat 
price 
indexation 
below 
5% 
for 
2023, 
cementing our 
position as 
the lowest-priced 
heat suppliers 
in the 
Czech market. 
Our capital 
expenditures 
in 
the 
following 
years 
(with 
material 
investments 
already 
in 
2023) 
will 
be 
driven 
by 
our 
firm 
commitment to reduce carbon emissions by 60% and phase out lignite as our primary energy source by 
2030, while ensuring continuity of supplies at affordable prices for end consumers. Lignite-fired assets 
are going to be 
converted to a balanced 
mix of highly efficient 
gas-fired plants, biomass 
units and waste 
incinerator 
plants. 
The 
new 
technologies 
might 
combust 
also 
emission-neutral 
synthetic 
gases 
or 
hydrogen once there is relevant market for those gases in 
place. The conversion projects are already in 
an 
advanced 
preparatory 
phase 
with 
the 
procurement 
process 
ongoing 
and 
a 
portion 
of 
subsidy 
applications submitted. 
Acknowledging the impact 
of its 
operations on communities 
and other stakeholders, 
EPIF also issued 
its fourth 
sustainability report 
during 2022 
enabling readers 
to get 
a better 
understanding of 
our approach 
to environmental, social and governance matters. EPIF, as 
an operator of critical infrastructure, is fully 
aware of its role 
in the European energy 
transition as its gas 
transit, storage and distribution 
assets are 
very well 
positioned to 
accommodate renewable 
gases such 
as hydrogen 
in the 
future. As 
mentioned 
above, we 
have already 
embarked on 
several projects 
along our 
entire gas 
infrastructure to 
assess its 
compatibility with hydrogen. 
In 2022, 
we successfully conducted 
our pilot 
hydrogen blending project 
in Blatná 
na Ostrove 
village which 
confirmed that 
blending 10% 
volume of 
hydrogen into 
the distributed 

gas does not 
have negative impacts on 
the safety, 
reliability and standard operation of 
gas distribution 
facilities as well as household 
appliances. By this project, we have 
moved significantly forward in our 
effort to 
gradually prepare the 
entire distribution network for 
a mixture of 
gases containing hydrogen, 
or the future distribution of pure hydrogen in selected parts of the network. 
Our efforts in this area were reflected in a strong ESG rating received from Sustainalytics in December 
2022. EPIF 
further improved 
its ESG 
Risk Rating 
from 20.0 
to 18.2 
(the lower 
score, the 
better) and 
confirmed its position 
in the low-risk 
category, 5th best out of 
80 companies in 
the multi-utilities sector. 
In addition, 
in November 
2022 EPIF 
obtained an 
updated ESG 
evaluation from 
S&P Global 
Ratings 
with a score of 63/100 (the higher score, the better). 
We 
are 
also 
mindful 
of 
the 
challenges 
that 
lie 
ahead, 
on 
one 
hand 
including 
the 
ongoing 
military 
aggression 
in 
Ukraine 
generating 
potential 
risks 
for 
our 
operations, 
on 
the 
other 
hand 
promotion 
of 
European energy independency and 
the need to 
transition to a 
low-carbon economy. 
However, we are 
confident 
that 
with 
our 
strong 
leadership, 
conservative 
risk 
management, 
dedicated 
employees, 
supportive stakeholders, and robust 
and diversified business we 
will be able 
to navigate through these 
challenges and emerge even stronger. 
Finally, we would like to 
take this opportunity 
to thank our 
employees, customers, 
and partners for 
their 
support and dedication in helping us achieve our goals. We are confident that together we can continue 
to drive 
innovation and 
growth in 
the energy 
infrastructure sector 
against the 
background of 
external 
market challenges and inevitable energy market transformation, 
thus contributing to a more sustainable 
future. We owe our success to all of you. 
 

 
 
 
 
 
 
1
Adjusted EBITDA represents profit (loss) for the year 
before income tax, finance expense, finance income, impairment 
losses on financial 
instruments 
and 
other 
financial 
assets, 
share 
of 
profit 
of 
equity 
accounted 
investees, 
net 
of 
tax, 
gain 
(loss) 
on 
disposal 
of 
subsidiaries, 
depreciation of property, plant and equipment and amortisation of intangible assets and negative goodwill and impairment charges relating to 
property, plant and equipment and intangible assets adjusted by (a) adding back (if negative) or deducting (if positive) 
the difference between 
(i) 
compensation 
for 
the 
expenses 
for 
mandatory 
purchase 
and 
off-take 
of 
energy 
from 
renewable 
sources 
pursuant 
to 
the 
Slovak 
RES 
Promotion Act and 
the Decree recognised 
in revenues in 
the relevant period 
and (ii) net 
expenses accounted for the 
mandatory purchase of 
energy from renewable resources in accordance 
with the Slovak RES Promotion Act, 
in each case inclusive of accruals (2022: 
EUR 0 million; 
2021: EUR -1 million), and (b) adding back 
the deficit from the purchase of electricity to cover 
network losses of the current year stemming 
from the difference between 
(i) regulated price 
of electricity to cover 
network losses valid for 
the current year, which is 
a fixed price calculated 
in line with the Slovak Decree of the 
Regulator No. 18/2017 Coll., Article 28, 
and (ii) spot market price at which electricity 
is being bought to 
cover network losses of 
the current year; 
and deducting the correction 
amount (also set by 
the Slovak Decree of 
the Regulator No. 18/2017 
Coll., Article 28) which is supposed to compensate for the difference 
between the regulated price and spot market purchase price (2022: EUR 
-18 million; 
2021: EUR 0 million) 
Slovak RES Promotion 
Act means Slovak 
Act No. 
309/2009 Coll., 
on promotion 
of renewable energy 
sources and 
high-efficiency cogeneration 
and on 
amendments to 
certain acts 
(zákon o 
podpore obnoviteľných 
zdrojov energie 
a vysoko 
účinnej kombinovanej 
výroby a 
o zmene 
a 
doplnení niektorých zákonov). 
Decree means the Slovak Decree of the Regulator No. 18/2017 
Coll. (or any other applicable decree or law replacing it) 
Reconciliation is as follows: 
Key Metrics 
Gas 
Transmission 
Gas and 
Power 
Distribution 
Gas 
Storage 
Heat 
Infra 
Total 
segments 
Other 
Holding 
entities 
Intersegment 
eliminations 
Consolidated 
financial 
information 
Year 2022 
Profit (loss) for the year 
168 
228 
263 
115 
774 
1 
504 
(578) 
701 
Income tax 
55 
74 
85 
27 
241 
1 
11 
- 
253 
Finance income 
(69) 
(15) 
(2) 
(6) 
(92) 
- 
(634) 
625 
(101) 
Finance expense 
31 
22 
4 
2 
59 
1 
83 
(47) 
96 
Impairment losses on financial instruments 
and other financial assets 
- 
- 
1 
- 
1 
- 
(5) 
- 
(4) 
Depreciation, amortisation and impairment 
139 
229 
28 
60 
456 
2 
34 
- 
492 
Underlying EBITDA 
324 
538 
379 
198 
1,439 
5 
(7) 
- 
1,437 
Network losses correction 
- 
18 
- 
- 
18 
- 
- 
- 
18 
Adjusted EBITDA 
324 
556 
379 
198 
1,457 
5 
(7) 
- 
1,455 
Key Metrics 
Gas 
Transmission 
Gas and 
Power 
Distribution 
Gas 
Storage 
Heat 
Infra 
Total 
segments 
Other 
Holding 
entities 
Intersegment 
eliminations 
Consolidated 
financial 
information 
Year 2021 
Profit (loss) for the year 
262 
214 
111 
44 
631 
(1) 
579 
(607) 
602 
Income tax 
86 
70 
34 
8 
198 
- 
7 
- 
205 
Gain (loss) on disposal of subsidiaries 
- 
- 
- 
- 
- 
- 
1 
- 
1 
Share 
of profit 
(loss) 
of equity 
accounted 
investees, net of tax 
- 
- 
- 
- 
- 
(1) 
- 
- 
(1) 
Finance income 
(16) 
(2) 
(2) 
(5) 
(25) 
- 
(669) 
627 
(67) 
Finance expense 
31 
12 
5 
3 
51 
1 
68 
(21) 
99 
Impairment losses on financial instruments 
and other financial assets 
- 
1 
2 
- 
3 
2 
4 
1 
10 
Depreciation, amortisation and impairment 
116 
226 
29 
54 
425 
3 
- 
- 
428 
Underlying EBITDA 
479 
521 
179 
104 
1,283 
4 
(10) 
- 
1,277 
System Operation Tariff surplus 
/ deficit
(3)
 
- 
1 
- 
- 
1 
- 
- 
- 
1 
Adjusted EBITDA 
479 
522 
179 
104 
1,284 
4 
(10) 
- 
1,278 

2
Proportionate Adjusted EBITDA represents 
Adjusted EBITDA, taking into consideration 
the proportionate ownership of the 
Company in its 
subsidiaries
3
Adjusted Free Cash Flow 
represents Cash flows 
generated from (used in) 
operations, less Income 
taxes paid and less 
Acquisition of property, 
plant and equipment, investment property 
and intangible assets, less Purchase 
of emission rights and disregarding 
changes in restricted cash as 
presented in the 
consolidated statement of 
cash flows of 
the Group, 
adjusted for: (i) 
Underlying EBITDA effect 
of the 
SOT (2022: 
EUR 0 
million; 2021: 
EUR -1 
million ), 
(ii) working 
capital impact 
of the 
SOT (2022: 
EUR 50 
million; 2021: 
EUR 24 
million), (iii) 
Underlying 
EBITDA effect of the network losses correction 
(2022: EUR -18 million; 2021: EUR 0 
million ), (iv) working capital impact of the 
network 
losses correction (2022: EUR -47 million; 2021: EUR 0 million)

II.

Independent Auditor´s Report to the Annual Financial Report

 
 
 
INDEPENDENT AUDITOR’S REPORT
To 
the Shareholders of 
EP Infrastructure, 
a.s.
Having its registered office at: Pařížská 
130/26, Josefov, 
110 00 Prague 1
Opinion
We 
have 
audited 
the 
accompanying 
consolidated 
financial 
statements 
of 
EP 
Infrastructure 
a.s. 
and 
its 
subsidiaries 
(the 
“Group”)
prepared 
on 
the 
basis 
of
International 
Financial 
Reporting 
Standards 
as 
adopted 
by 
the 
EU, 
which 
comprise 
the 
consolidated 
statement 
of 
financial 
position 
as 
at 
31 
December 
2022, 
and 
the 
consolidated 
income 
statement, 
consolidated 
statement 
of 
comprehensive 
income, 
consolidated 
statement 
of 
changes 
in 
equity 
and consolidated statement 
of cash flows for the 
year then ended, and notes 
to the consolidated financial 
statements, 
including a summary of significant accounting policies and other explanatory 
information.
In our opinion, 
the accompanying consolidated financial 
statements give a true 
and fair view 
of
the consolidated financial 
position of the Group 
as at 31 December 2022, and 
of its consolidated 
financial performance and its 
consolidated cash 
flows for the year then ended in accordance with 
International Financial Reporting Standards as adopted 
by the EU.
Basis for Opinion
We 
conducted 
our 
audit 
in 
accordance 
with 
the 
Act 
on 
Auditors, 
Regulation 
(EU) 
No. 
537/2014 
of 
the 
European 
Parliament 
and 
the 
Council 
and 
Auditing 
Standards 
of 
the 
Chamber 
of 
Auditors 
of 
the 
Czech 
Republic, 
which 
are 
International Standards on Auditing (ISAs), as amended by the related application 
guidelines. Our responsibilities under 
this law and regulation are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial 
Statements 
section 
of 
our 
report. 
We 
are 
independent 
of 
the 
Group 
in 
accordance 
with 
the 
Act 
on 
Auditors 
and the Code of Ethics adopted by 
the Chamber of Auditors of the Czech Republic and 
we have fulfilled our other ethical 
responsibilities in accordance with 
these requirements. We believe 
that the audit 
evidence we have 
obtained is sufficient 
and appropriate to provide a basis for 
our opinion.
Key Audit Matters
Key 
audit 
matters 
are 
those 
matters 
that, 
in 
our 
professional 
judgment, 
were 
of 
most 
significance 
in 
our 
audit 
of the consolidated financial statements of the current period. These 
matters were addressed in the context of our 
audit 
of the consolidated 
financial 
statements 
as 
a 
whole, 
and 
in 
forming 
our 
opinion 
thereon, 
and 
we 
do 
not 
provide 
a separate opinion on these matters.

 
 
 
 
 
 
 
Key Audit Matter 
How it was addressed 
Revenue recognition of accrued energy delivery 
The group recognized revenues from energy distribution 
as stated 
in Note 
7. Material 
part of these 
revenues for 
energy 
delivered 
to customers 
is estimated 
at the 
year 
end, 
because 
the 
metering 
period 
for 
customers 
is 
different. Meter reading and invoicing is performed after 
the year 
end. These revenues 
make a 
significant part 
of 
total 
annual 
revenues 
and 
are 
subject 
to 
a 
complex 
judgement in this area, which is the reason for this being 
a key audit matter. 
-
We 
have 
obtained 
understanding 
of 
the 
design 
and 
implementation 
of 
relevant 
controls 
over 
the 
determination 
of 
the 
amounts 
of 
energy 
not 
yet 
invoiced. 
-
Testing 
the 
accuracy 
of 
a 
sample 
of 
data 
on 
which 
estimate 
is 
made, 
including 
reconciliation 
of 
input 
parameters to underlying documentation. 
-
Testing 
whether 
the 
assumptions 
used 
are 
appropriate 
given 
the 
measurement 
objective 
and 
analytical testing of the balance accrued. 
-
Assessment of the 
Group’s revenue recognition policy 
for compliance with IFRS. 
-
Assessment 
whether 
the 
Group's 
revenue 
recognition-related 
disclosures 
in 
the 
consolidated 
financial 
statements 
describe 
the 
relevant 
quantitative 
and qualitative 
information 
required 
by 
IFRS. 
Valuation of energy fixed 
assets 
The group business is 
based on major energy fixed 
assets 
(pipes, 
storages, 
plants) 
that 
are 
depreciated 
over 
estimated 
useful 
life 
determined 
by 
the 
management 
judgement 
derived 
from 
trends 
in 
industry 
and 
its 
macroeconomic 
outlook 
and 
political 
directions 
which 
affect 
its 
valuation. 
The 
group 
makes 
an 
assessment 
whether 
the 
carrying 
amount 
of 
fixed 
assets 
including 
goodwill is 
impaired by 
calculating the 
present value 
of 
future cash flows arising from the Group’s 
operations as 
noted in Note 3i, Note 
15 and 16. An impairment test 
of 
these 
assets requires 
determining 
the 
estimates 
of 
the 
following key calculation 
inputs: 
-
Future cash flows of each cash-generating 
unit. 
-
The discount rate 
specific to the assets owned by 
the Group. 
-
The weighted cost of capital. 
The 
above 
assumptions 
require 
management 
to 
make 
highly-subjective 
judgements 
regarding 
long-term 
periods, 
including 
the 
impact 
of 
the 
sustainability 
concept, 
financial 
performance 
of 
the 
investments, 
future 
of 
the 
energy 
sector 
in 
Europe 
– 
including 
the 
development 
of 
the 
military 
conflict 
of 
Russian 
Federation in Ukraine and related sanctions - 
and the use 
of 
discounts. 
The 
complexity 
of 
judgement 
involved 
in 
the 
valuation 
is 
the 
reason 
for 
this 
being 
a 
key 
audit 
matter. 
-
Our 
audit 
procedures 
included 
assessment 
of the 
appropriateness 
of the 
valuation 
method and 
testing of the measurement of carrying amounts. 
-
Our 
procedures 
also 
included 
inquiries 
of 
the 
management concerning year-on-year changes in the 
fixed assets book values. 
-
Assessment 
of 
the 
impact 
of 
changes 
and 
expected 
changes 
in 
the 
sustainability 
concept, 
potential 
impact 
of 
the 
military 
Conflict 
between 
Russian 
federation 
and 
Ukraine 
and 
reading 
management 
meeting minutes. 
-
We evaluated 
the appropriateness 
of management’s 
identification of the Group’s 
CGUs. 
-
We 
obtained 
an 
understanding 
of 
the 
budget 
preparation 
and 
impairment 
assessment 
process, 
including indicators of impairment. 
-
We 
used 
the 
work 
of 
an 
internal 
specialist 
for 
the 
assessment 
of 
asset 
impairment 
testing 
models 
prepared by management, their assumptions and the 
reliability of these assumptions and recalculation. 
Other Information in the Annual Financial Report
In 
compliance 
with 
Section 
2(b) 
of 
the 
Act 
on 
Auditors, 
the 
other 
information 
comprises 
the 
information 
included 
in 
the 
Annual 
Financial 
Report 
other 
than 
the 
consolidated 
financial 
statements 
and 
auditor’s 
report 
thereon. 
The Board of Directors is responsible for 
the other information.

 
 
Our opinion on the 
consolidated financial statements does not cover the 
other information. In connection with 
our audit 
of the 
consolidated financial 
statements, 
our responsibility 
is to read 
the other 
information and, 
in doing 
so, consider 
whether the other 
information is materially 
inconsistent with 
the consolidated 
and standalone financial statements 
or 
our knowledge 
obtained in 
the audit 
or otherwise 
appears to 
be materially 
misstated. In 
addition, we 
assess whether 
the other information 
has been 
prepared, 
in all 
material respects, 
in accordance 
with applicable 
law or 
regulation, in 
particular, 
whether 
the 
other 
information 
complies 
with 
law 
or 
regulation 
in 
terms 
of 
formal 
requirements 
and 
procedure for preparing the other information in the context of materiality, i.e. whether any non-compliance with these 
requirements could influence judgments made on the basis 
of the other information.
Based on the procedures performed, to the extent 
we are able to assess it, we report that:
●
The 
other 
information 
describing 
the 
facts 
that 
are 
also 
presented 
in 
the 
consolidated 
and 
standalone 
financial 
statements is, in all material respects, 
consistent with the consolidated and standalone 
financial statements; and 
●
The other information is prepared in compliance with 
applicable law or regulation. 
In 
addition, 
our 
responsibility 
is to 
report, 
based 
on the 
knowledge 
and 
understanding 
of 
the Company 
obtained 
in 
the audit, on 
whether the other 
information contains 
any material 
misstatement 
of fact. Based 
on the procedures 
we 
have performed on the other information 
obtained, we have not identified any 
material misstatement of fact.
Responsibilities of the Company’s Board 
of Directors and Supervisory Board for the Consolidated 
Financial Statements
The Board of Directors is responsible 
for the preparation and fair 
presentation of the consolidated 
financial statements 
in 
accordance 
with 
International 
Financial 
Reporting 
Standards 
as 
adopted 
by 
the 
EU 
and 
for 
such 
internal 
control 
as the Board 
of Directors 
determines is 
necessary to 
enable the preparation 
of consolidated 
financial statements 
that 
are free from material misstatement, 
whether due to fraud or error.
In preparing the consolidated financial statements, the Board of Directors is 
responsible for assessing the Group’s ability 
to continue as a 
going concern, disclosing, as applicable, 
matters related 
to going concern and using 
the going concern 
basis of 
accounting unless 
the Board 
of Directors 
either intends 
to liquidate 
the Group 
or to 
cease operations, 
or has 
no realistic alternative but to do so.
The Supervisory Board is responsible for overseeing 
the Group’s financial reporting 
process.
Auditor’s Responsibilities for the Audit 
of the Consolidated Financial Statements
Our objectives are to obtain 
reasonable assurance about whether 
the consolidated financial statements 
as a whole are 
free 
from 
material 
misstatement, 
whether 
due 
to 
fraud 
or 
error, 
and 
to 
issue 
an auditor’s 
report 
that 
includes 
our 
opinion. Reasonable assurance is a high level of assurance, but is 
not a guarantee that an audit conducted in accordance 
with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are 
considered material 
if, 
individually or 
in the 
aggregate, they 
could reasonably 
be expected 
to influence 
the economic 
decisions of users taken on the basis of these consolidated 
financial statements.
As part 
of an 
audit in 
accordance with 
the above 
law or 
regulation, we 
exercise 
professional 
judgment 
and maintain 
professional skepticism throughout 
the audit. We also:
●
Identify 
and 
assess 
the 
risks 
of 
material 
misstatement 
of 
the 
consolidated 
financial 
statements, 
whether 
due 
to fraud or error, 
design and perform audit procedures 
responsive to those risks, and obtain 
audit evidence that is 
sufficient 
and appropriate 
to provide 
a basis 
for 
our opinion. 
The 
risk of 
not detecting 
a material 
misstatement 
resulting from fraud is higher than for 
one resulting from error, 
as fraud may involve collusion, 
forgery, 
intentional 
omissions, misrepresentations, or the override 
of internal control. 
●
Obtain 
an 
understanding 
of 
internal 
control 
relevant 
to 
the 
audit 
in 
order 
to 
design 
audit 
procedures 
that 
are 
appropriate 
in 
the 
circumstances, 
but 
not 
for 
the 
purpose 
of 
expressing 
an 
opinion 
on 
the 
effectiveness 
of the Group’s internal 
control. 
●
Evaluate 
the 
appropriateness 
of 
accounting 
policies 
used 
and 
the 
reasonableness 
of 
accounting 
estimates 
and related disclosures made by the Board 
of Directors. 
●
Conclude on the appropriateness of the Board of Directors’ use 
of the going concern basis of accounting and, 
based 
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast 
significant doubt on 
the Group’s 
ability to continue 
as a going concern. 
If we conclude 
that a material 
uncertainty 
exists, 
we 
are 
required 
to 
draw 
attention 
in 
our 
auditor’s 
report 
to 
the 
related 
disclosures 
in 
the 
consolidated 
financial 
statements 
or, 
if 
such 
disclosures 
are 
inadequate, 
to 
modify 
our 
opinion. 
Our 
conclusions 
are 
based 
on the 
audit evidence obtained 
up to the 
date of 
our auditor’s 
report. However, 
future events 
or conditions 
may 
cause the Group to cease to continue as a going 
concern. 

 
 
 
 
●
Evaluate 
the 
overall 
presentation, 
structure 
and 
content 
of 
the 
consolidated 
financial 
statements, 
including 
the 
disclosures, 
and 
whether 
the 
consolidated 
financial 
statements 
represent 
the 
underlying 
transactions 
and events in a manner that achieves fair presentat 
ion. 
●
Obtain sufficient appropriate audit evidence regarding the financial 
information of the entities or business 
activities 
within 
the 
Group 
to 
express 
an 
opinion 
on 
the 
consolidated 
financial 
statements. 
We 
are 
responsible 
for 
the direction, supervision and performance of the group audit. We remain solely responsible for 
our audit opinion. 
We communicate with the Board 
of Directors, the Supervisory Board and the Audit Committee 
regarding, among other 
matters, the 
planned scope and 
timing of the 
audit and significant 
audit findings, including 
any significant 
deficiencies 
in internal control that we identify during 
our audit.
We 
also 
provide 
the 
Audit 
Committee 
with 
a 
statement 
that 
we 
have 
complied 
with 
relevant 
ethical 
requirements 
regarding 
independence, and 
to communicate 
with them 
all relationships 
and other 
matters 
that may 
reasonably be 
thought to bear on our independence, and where applicable, related 
safeguards. 
From 
the 
matters 
communicated 
with 
the 
Board 
of 
Directors, 
the 
Supervisory 
Board 
and 
the 
Audit 
Committee, 
we 
determine 
those 
matters 
that 
were 
of 
most 
significance 
in 
the 
audit 
of 
the 
consolidated 
financial 
statements 
of the current period and are therefore 
the key audit matters. We 
describe these matters in our auditor’s 
report unless 
law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine 
that 
a 
matter 
should 
not 
be 
communicated 
in 
our 
report 
because 
the 
adverse 
consequences 
of 
doing 
so 
would 
reasonably be expected to outweigh the public interest 
benefits of such communication.
Report on Other Legal and Regulatory Requirements
In 
compliance 
with 
Article 
10 
(2) 
of 
Regulation 
(EU) 
No. 
537/2014 
of 
the 
European 
Parliament 
and 
the 
Council, 
we 
provide the following information in our independent auditor’s report, 
which is required in addition 
to the requirements 
of International Standards on Auditing:
Appointment of the Auditor and the Period of Engagement
We 
were appointed 
as the 
auditors 
of the 
Group 
by the 
General Meeting 
of Shareholders 
on 5 
March 
2020 and 
our 
uninterrupted engagement has lasted 
for 2 years.
Consistence with the Additional Report to the Audit Committee
We 
confirm 
that 
our 
audit 
opinion 
on 
the 
consolidated 
financial 
statements 
expressed 
herein 
is 
consistent 
with 
the additional report 
to the Audit 
Committee of the Group, 
which we issued 
on 25 March 2022 
in accordance with Article 
11 of Regulation (EU) No. 537/2014 of the European Parliament 
and the Council.
Provision of Non-audit Services
We 
declare 
that 
no 
prohibited 
non-audit 
services 
referred 
to 
in 
Article 
5 
of 
Regulation 
(EU) 
No. 
537/2014 
of the European 
Parliament 
and the 
Council were 
provided. 
In addition, 
there 
are no 
other non-audit 
services which 
were provided by us to the Company and its controlled undertakings and which have not been disclosed in the financial 
statements.
Report on Compliance with the ESEF Regulation
We have 
conducted a 
reasonable assurance 
engagement on 
the verification 
of compliance 
of the 
financial statement 
included 
in 
the 
annual 
financial 
report 
with 
the 
provisions 
of 
Commission 
Delegated 
Regulation 
(EU) 
2019/815 
of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regard 
to regulatory technical standards on the specification of 
a single electronic reporting format (the 
“ESEF Regulation”) that 
apply to the financial statement. 
Responsibilities of the Board of Directors 
The 
Company’s 
Board 
of 
Directors 
is responsible 
for 
the preparation 
of 
the financial 
statements 
in 
compliance 
with 
the ESEF Regulation. Inter alia, the Company’s 
Board of Directors is responsible for:
●
The design, implementation and 
maintenance of the internal 
control relevant for the application of 
the requirements 
of the ESEF Regulation; 
●
The preparation of all financial statements 
included in the annual financial report in the valid XHTML format; 
and 
●
The selection and use of XBRL mark-ups in line with the requirements 
of the ESEF Regulation. 

 
 
Auditor’s Responsibilities 
Our task 
is to 
express a 
conclusion whether 
the financial 
statements 
included in 
the annual 
financial report 
are, in 
all 
material respects, 
in compliance with the 
requirements of the 
ESEF Regulation, 
based on the audit 
evidence obtained. 
Our 
reasonable 
assurance 
engagement 
was 
conducted 
in 
accordance 
with 
the 
International 
Standard 
on 
Assurance 
Engagements 3000 (Revised) 
Assurance Engagements 
Other Than Audits or 
Reviews of Historical 
Financial Information 
(hereinafter “ISAE 3000”).
The nature, timing and 
scope of the selected procedures 
depend on the auditor’s 
judgment. A reasonable assurance 
is 
a high level of assurance; 
however, 
it is not a guarantee 
that the examination 
conducted in accordance with 
the above 
standard will always detect a 
potentially existing material non-compliance with 
the requirements of the 
ESEF Regulation.
As part of our work, we performed the following procedures:
●
We obtained an understanding 
of the requirements of the ESEF Regulation; 
●
We obtained 
an understanding 
of the Company’s 
internal control 
relevant for 
the application of 
the requirements 
of the ESEF Regulation; 
●
We 
identified and 
evaluated 
risks of 
material non-compliance 
with the 
ESEF Regulation, 
whether due 
to fraud 
or 
error; and 
●
Based on this, we 
designed and performed procedures responsive to those 
risks and aimed at 
obtaining a reasonable 
assurance for the purposes of expressing our 
conclusion. 
The aim of our procedures was to assess whether:
●
The financial statements included in the annual financial report 
were prepared in the valid XHTML format; 
●
The disclosures 
in the 
consolidated 
financial state 
ments were 
marked 
up where 
required 
by the 
ESEF Regulation 
and all mark-ups meet the following requirements: 
-
XBRL mark-up language was used;
-
The elements of the core taxonomy specified in the ESEF Regulation with the closest accounting meaning were 
used, unless an extension taxonomy 
element was created in compliance with the ESEF Regulation; 
and
-
The mark-ups comply with the common rules for 
mark-ups pursuant to the ESEF 
Regulation.
We believe that the evidence we have 
obtained is sufficient and appropriate 
to provide a basis for our conclusion.
Conclusion
In our opinion, 
the Company’s financial statements for 
the year ended 
31 December 
2022 included in 
the annual financial 
report are, in all material respects, in compliance with 
the requirements of the ESEF Regulation.
In Prague on
24 March 2023
Audit firm:
Statutory auditor:
Deloitte Audit s.r.o.
registration no. 079 
David Batal 
registration no. 2147

III.

Other Information

 
1)
Development of the EP Infrastructure, a.s. Group ("EPIF Group" or “Group”) 
Recent developments and key events for EPIF Group 
Following the 
military invasion 
of Ukraine 
by the 
Russian Federation 
in February 
2022, the 
United States, 
the 
European 
Union 
(“EU”), 
the 
United 
Kingdom (“UK”), 
Canada, Japan, 
Australia and 
other 
countries 
imposed 
sanctions 
against 
the 
Russian 
Federation 
and 
Belarus 
as 
well 
as 
certain 
Russian 
and 
Belarussian 
companies 
including 
producers of 
oil 
and 
gas. 
These events 
resulted in 
general uncertainty 
with 
respect 
to 
the 
supply of 
natural gas from the Russian Federation to 
Europe, which was intensified by actions of the 
Russian state-owned 
company Gazprom related to the pipelines Nord Stream 1 (“NS1”), Yamal and Brotherhood. 
NS1 is 
a major 
pipeline for 
the transport 
of natural 
gas from 
the Russian 
Federation to 
Europe. In 
June 2022, 
Gazprom reduced 
gas volumes 
transported through 
NS1 to 
40 per 
cent. capacity 
and in 
July and 
August 2022 
stopped the 
gas flow 
entirely due 
to maintenance 
work. In 
September 2022, 
NS1 and 
Nord Stream 
2 (“NS2”) 
were impacted by underwater explosions in the Baltic Sea near the island of 
Bornholm and rendered inoperable. 
Even 
though 
the 
European Commission 
indicated 
that 
NS1 
and 
NS2 
were 
likely 
sabotaged, both 
the 
Russian 
Federation and 
Ukraine denied 
responsibility for 
the explosions 
and Gazprom 
said that 
it is 
unable to 
predict when 
NS1 might be reopened and gas flows might resume. As of March 2023, 
no repair plans have been announced. 
Similarly, 
gas 
flows 
through 
Yamal 
and 
Brotherhood 
pipelines 
were 
also 
adversely 
affected. 
In 
May 
2022, 
Gazprom halted 
gas flows 
via Yamal 
in response 
to sanctions 
imposed on 
the Russian 
Federation and 
Russian 
companies. Subsequently, 
Poland terminated 
the intergovernmental 
agreement with 
the 
Russian Federation 
on 
natural gas supply via Yamal because it refused to make payments in Russian roubles. As of 31 December 2022, 
gas flows 
via Yamal 
to Europe 
have not 
yet resumed. With 
respect to the 
Brotherhood pipeline, volume 
of gas 
flows 
transported 
via 
connection 
point 
Velke 
Kapusany 
decreased 
to 
approx. 
37 
mcm 
per 
day 
in 
May 
2022, 
representing less than 
one third of 
the volume contracted 
under the long 
term take-or-pay contract 
concluded with 
eustream, a.s. 
This decrease 
resulted from 
to a 
force majeure 
event declared 
by the 
Ukrainian state-owned 
gas 
grid operator 
GTSOU on the 
transit of 
Russian gas entering 
Ukraine at Sokhranivka 
connecting point resulting 
from security threats caused by the Russian occupation forces. After a temporary decline to approx. 18 mcm per 
day during January 
2023, the volume 
of gas transported 
via connection point 
Velke 
Kapusany recovered to 
the 
stable level of approx. 37 mcm per day observed as of March 2023. 
As a result of 
these developments, the 
overall volumes of 
gas supplied from 
the Russian Federation 
to the EU 
and 
the UK 
decreased to 
approx. 67 
bcm in 
2022 as 
compared to 
approx. 150 
bcm in 
2021 when 
Russian gas 
accounted 
for 
approx. 36 
per cent. 
of the 
EU’s 
and the 
UK’s 
consumption.
2
 
The majority 
of the 
shortfall in 
Russian gas 
imports for consumption 
in the EU and 
the UK was replaced 
through additional 62 
bcm of LNG. The 
EU and UK 
had limited potential to increase 
gas imports from other sources. For 
example, the EU and UK only 
managed to 
source additional 9 bcm of 
gas from Norway. However, multiple projects aimed at increasing 
LNG capacities are 
under 
development. 
Such 
projects 
are 
scheduled 
to 
commence 
operations 
within 
the 
next 
one 
to 
three 
years, 
primarily in Germany, the 
Netherlands and Poland. 
Also, with 
regard to the 
ongoing military 
invasion of Ukraine, 
it 
is 
uncertain 
whether 
any 
further 
reductions 
or 
interruptions 
in 
the 
supply 
of 
natural 
gas 
from 
the 
Russian 
Federation to Europe will occur. 
These events 
were the 
primary drivers 
of volatility 
in commodity 
prices in 
2022. Extreme 
weather events 
also 
contributed to increases 
in electricity prices 
as they affected the 
operations of hydro 
and nuclear power plants 
and 
the electricity system as 
a whole. Significant increases 
in electricity prices occurred in 
France, a key electricity 
exporter in 
Europe, where operations 
of nuclear reactors 
decreased to less 
than 50 
per cent. 
due to 
lengthy and 
delayed 
maintenance 
work, 
ongoing 
droughts, 
heat 
waves 
and 
decreased 
supply 
of 
natural 
gas, 
resulting 
in 
reduced overall power supply compounding the energy crisis 
in France as well as the rest 
of Europe. In general, 
energy prices peaked in August 
2022 before gradually decreasing 
throughout the rest of 
the year, reaching a level 
significantly below the 
pear in August 
yet, still substantially 
above historical averages. 
Higher volatility 
in energy 
2
 
The volumes are based on the data available at this 

            https://www.bruegel.org/dataset/european -natural-gas-imports
          

            .
          

 
prices also resulted in higher inter-seasonal price spreads and spot price volatility causing significant differences 
between gas spot prices and forward prices, especially in October 2022. Weather conditions and industry factors 
also impacted 
natural gas 
demand throughout 
the EU. 
In 2022, 
it is 
estimated that 
the EU 
natural gas 
demand, 
excluding storage filling, decreased by 
12 per cent. in comparison 
to the average demand calculated 
in the period 
over the 
years 2019 
to 2021.
3
 
While in 
the summer 
months of 
2022, the 
decreased demand 
in natural 
gas was 
primarily driven by lower industrial 
activity, decreases in demand throughout October, November and December 
2022 amounted to 27 
per cent., 24 per 
cent. and 13 per 
cent., respectively and were 
also driven by 
warmer than 
average 
weather 
conditions. 
However, 
the 
beginning 
of 
December 
was 
notably 
cold 
and 
household 
demand 
reductions were not as large. 
The EPIF Group is subject to a 
number of laws and regulations at both EU 
and national level, which are subject 
to 
ongoing 
change. 
In 
May 
2022, 
the 
European 
Commission 
introduced 
the 
REPowerEU 
Plan 
aimed 
at 
eliminating the EU´s dependency on Russian fossil fuel imports by 2027 through energy savings, diversification 
of 
energy 
supplies and 
accelerated roll-out 
of 
renewable energy 
replacing fossil 
fuels. The 
Council of 
the EU 
confirmed the target 
of at least 
40 per cent. share 
of energy from 
renewable sources within the 
EU’s gross 
final 
consumption by 2030. However, it is 
uncertain whether the member 
states will be able 
to successfully implement 
the proposed measures and engage in sufficient cooperation. 
Both the EU and national 
governments have been trying to address 
the energy crisis and 
mitigate its impacts on 
European businesses 
and households. 
In September 
2022, the 
European Commission 
proposed several 
emergency 
measures. 
The 
TTE 
Energy 
Council 
took 
steps 
to 
reduce 
gas 
use 
in 
the 
EU 
by 
15 
per 
cent 
by 
spring 
2023, 
encouraged further work on the voluntary 
EU Energy Platform on gas, LNG, and hydrogen 
in order to secure the 
EU energy 
supply at 
affordable prices 
and encouraged 
development of 
LNG transshipment 
as well 
as development 
of a 
network of 
energy interconnectors. 
Based on 
the above-mentioned 
proposals, the 
EU approved 
regulation 
setting out a gas 
market correction mechanism aimed at 
limiting excessive gas prices 
in the EU, 
while ensuring 
security of energy supply and the stability of financial markets. The regulation entered into force on 15 February 
2023 with temporary application for one year. The regulation establishes automatically 
activated and deactivated 
market 
correction mechanism 
on virtual 
gas 
trading platforms 
in 
the 
EU 
based on 
dynamic bidding 
limits for 
transactions concerning 
natural gas futures, 
as well as 
suspension mechanism 
allowing the European 
Commission 
to adopt an implementing decision to suspend the 
market correction mechanism. Furthermore, the Council of 
the 
EU is expected to formally adopt proposed regulation on enhancing solidarity through better coordination of gas 
purchases, exchanges 
of gas 
across borders 
and reliable 
price benchmarks. 
The European 
Commission further 
proposed a directive and regulation on common rules 
for the internal markets in renewable and natural gases 
and 
in hydrogen enabling a shift away from natural gas by enhancing penetration 
of renewable and low-carbon gases 
into the energy system. 
As part 
of the 
EU sanctions 
package against 
the Russian 
Federation in 
response to 
the military 
invasion of 
Ukraine, 
the EU introduced a 
ban on Russian coal 
imports that became effective 
in August 2022. In 
order to target Russian 
revenues from oil 
that originated from 
extraordinary market conditions 
in reaction to 
Russian military invasion 
of Ukraine, 
the EU 
introduced a 
price cap 
on maritime 
transport of 
Russian oil 
for third 
countries in 
October 2022. 
Further, in December 2022, the EU 
set a price cap on 
crude oil, petroleum oils 
and oils obtained from 
bituminous 
minerals, which originate in or are exported from Russia, 
at USD 60 per barrel. In February 2023, the Council 
of 
the EU introduced 
two price caps 
for petroleum products 
falling under CN 
code 2710 which 
originate in or 
are 
exported from Russia, whereby price cap for petroleum products 
traded at a discount to crude oil was set at USD 
45 per barrel 
and the price 
cap for petroleum 
products traded at 
a premium to 
crude was 
set at USD 
100 per barrel. 
Furthermore, in February 
2023, the EU 
imposed a ban 
on provision of gas 
storage capacity to 
Russians. Imposing 
EU sanctions on Russian fossil fuels is associated with demand for alternative sources of imports from countries 
outside the EU as well as increase in domestic production, which resulted in the reactivation of coal-fired power 
3
 
Information 
about 
the 
EU 
gas 
demand 
is 
based 
on 
the 
data 
available 
at 
this 

            https://www.bruegel.org/dataset/european-
          

            natural-gas-demand-tracker
          

            .
          

 
plants in 
Germany that 
had been 
previously placed 
on reserve 
in connection 
with emission 
reductions targets. 
Austria, France and 
Netherlands have also announced 
plans to reactivate 
coal-fired power plants 
in order to 
fill 
their gas storage facilities ahead of winter. 
Gas 
storage 
facilities 
and 
assets 
continue 
to 
play 
an 
essential 
strategic 
role 
in 
the 
security 
of 
energy 
supply, 
especially with 
regard to 
recent developments 
of the 
gas supplies 
to the 
EU. The 
applicable EU 
legislation imposes 
obligation on gas storages to be filled up to 
at least 80 per cent. of their capacity by 
1 November 2022 and up to 
90 
per 
cent. by 
1 
November in 
the 
following years. 
As 
of 
1 
November 2022 
and 31 
December 2022, 
the 
gas 
storages in the 
EU were filled up 
to 95 per 
cent. and 83 per 
cent., respectively, 
as compared to 77 
per cent. and 
54 per cent. as of 1 November 2021 and 31 December 2021, respectively.
4
A 
continuous 
increase 
in 
energy 
and 
food 
prices 
and 
global 
disruptions 
of 
supply 
chains 
related 
to 
renewed 
outbreaks 
of 
COVID-19 
in 
China, 
the 
ongoing 
war 
in 
Ukraine 
and 
the 
related 
sanctions 
have 
significantly 
contributed to steady increase in inflation which reached in many countries its highest 
level since the 1980s. The 
central 
banks 
in 
the 
EU, 
United 
States 
and 
Asia 
have 
begun 
to 
raise 
interest 
rates 
in 
order 
to 
combat 
rising 
inflation. In January 
2023, the annual 
inflation in the 
EU (Harmonised Index 
of Consumer Prices) 
amounted to 
approximately 10.0 per cent.
5
 
This development, however, exposes companies 
to greater interest rate 
risks, as the 
national banks may set 
higher interest rates in 
order to counter growing 
inflation. In February 
2023, the European 
Central Bank has 
increased its three 
key interest rates 
by 50 basis 
points and specifically 
the deposit facility 
to 2.5 
per cent., 
following increases 
in December, 
November and 
September 2022 
and thereby 
raising the 
borrowing 
costs to the highest level since 2009.
6
 
The global product and raw material shortages cause imbalances in global 
supply and demand and labour shortages adversely affect the transport and logistics sector. In addition, if energy 
prices rise again due to falling gas supplies from the Russian Federation or other reasons, this increase in energy 
prices may exacerbate a risk of a renewed recession. 
Impact of the military invasion of Ukraine by the Russian Federation 
on the EPIF Group 
In the context of 
the ongoing military invasion in 
the territory of 
Ukraine and associated sanctions targeting 
the 
Russian Federation, the Company has been analysing the situation on an ongoing basis, assessing 
the impacts on 
the Company 
and its 
subsidiaries, and 
taking relevant 
measures to 
mitigate the 
related impacts 
on the 
Group’s 
business activities. 
In response to the Russian invasion of Ukraine, all three rating agencies (S&P, 
Fitch, Moody’s) initiated a credit 
rating review of EPIF and its key subsidiaries eustream and SPPD. During 2022, S&P Global Ratings, Fitch and 
Moody’s performed a rating downgrade of 
the Company to BBB-, 
BBB- and Ba1, respectively, in each case 
with 
negative outlook. The 
credit rating 
of eustream, a.s. 
was downgraded by 
Fitch and Moody’s 
to BBB- 
and Ba1, 
respectively, in each case with negative outlook. Moody’s confirmed the credit rating of SPPD in March 2022 at 
Baa2 (negative outlook) while Fitch downgraded the rating of SPPD 
to BBB+ (negative outlook). 
Expected development for the EPIF Group 
In 
2023, 
the 
EPIF 
Group 
will 
continue 
the 
development 
of 
its 
activities 
across 
its 
core 
segments 
of 
gas 
transmission, 
gas 
and 
power 
distribution, 
heat 
infra 
and 
gas 
storage. As 
part 
of 
its 
long-term 
decarbonization 
plans, EPIF 
Group will commence 
major Capex investments 
to convert its 
predominantly lignite-based heating 
plants in the 
Czech Republic to 
a balanced mix 
of gas-fired units 
and biomass boilers, 
complemented by waste 
incinerator plants. 
In 2023, EPIF expects a return to more sustainable 
levels of performance comparable with previous 
years, which 
is a 
slight slowdown 
in 
comparison to 
the rather 
exceptional performance 
in 2022. 
Management of 
the Group 
4
 
Information on gas storage data is available at this 

            https://agsi.gie.eu/#/
          

            .
          
5
 
Source: Eurostat. 
6
 
Source: European Central Bank. 

 
aims to maintain its 
relatively high cash conversion 
ratio and target 
a leverage ratio of 
3.5x Net Debt/EBITDA
7
in order 
to support 
the investment 
grade rating 
profile for 
the Group 
and its 
subsidiaries SPP 
– distribúcia, 
a.s. 
and eustream, a.s. 
In the context 
of the ongoing military invasion 
in the territory of 
Ukraine and associated sanctions targeting 
the 
Russian Federation, the Company has 
identified risks and taken 
relevant measures to mitigate 
the related impacts 
on 
its 
business 
activities. 
In 
2023, 
the 
EPIF 
Group 
will 
continue 
to 
monitor 
the 
market 
situation 
as 
well 
as 
developments 
in 
Ukraine 
whilst 
continuing 
to 
pursue 
its 
long-term 
strategy. 
EPIF 
expects 
to 
operate 
in 
an 
environment characterized by high commodity 
price volatility, 
uncertainty in respect of gas 
flows, high inflation, 
and potential further impacts of the COVID-19 pandemic on global markets. These factors may have an 
adverse 
effect on the Group’s business, financial condition, results of operations, cash flows and prospects. 
Other information about subsequent events that occurred after the reporting 
date 
Except for the subsequent events described in the 
Note 34 of Consolidated Financial Statements 
as of and for the 
year ended 31 December 2022, management is not aware of any additional subsequent events that occurred 
after 
the reporting date. 
2)
Management and Governance 
EPIF has a 
two-tier management structure consisting 
of its board 
of directors (the “Board of 
Directors”) and its 
supervisory board 
(the “Supervisory Board”). 
The Board 
of Directors 
represents EPIF 
in all 
matters and 
is charged 
with its day-to-day 
business management (together with 
the Senior Management), 
while the Supervisory 
Board 
is responsible 
for the 
supervision of 
EPIF’s activities and 
of the 
Board of 
Directors in 
its management 
and resolves 
on matters defined 
in the Czech 
Corporations Act and the 
Articles of Association. The 
Supervisory Board does 
not make management decisions. 
The Audit Committee is established 
as a separate corporate body 
of the Company responsible for performance 
of 
controlling functions in the field of audit (both internal and external 
including statutory) and accounting. 
The 
Risk 
Committee 
is 
responsible 
for 
overseeing 
risk 
management 
policies 
and 
practices 
of 
the 
Group’s 
operations, 
implement 
a 
monitor 
compliance 
with 
the 
Group’s 
risk 
management 
procedures 
and 
risk 
control 
infrastructure. 
General Meeting 
The shareholders have put in place a strong corporate governance regime that is implemented both in the EPIF’s 
articles of 
association and 
in the 
EPIF Shareholders’ 
Agreement, which, 
among other 
things, sets 
forth certain 
reserved matters requiring a qualified majority decision. 
The General Meeting 
is the supreme 
body of the 
Company. Each shareholder has 
a right to 
attend and vote 
during 
the General Meeting. The 
competencies of the General 
Meeting are sets forth 
in the Articles of 
Association of the 
company. 
EPIF Shareholders’ 
Agreement sets 
forth certain 
corporate governance 
requirements and 
reserved matters 
that 
together regulate the exercise of control over EPIF. 
The EPIF Shareholders’ Agreement covers in particular 
(i) corporate governance, whereas each shareholder 
may 
nominate one 
director for 
each 15 
per cent. 
of the 
shareholding interest in 
EPIF; in 
this case 
EPIF Investments 
a.s., are entitled to nominate five candidates, including the chairman, for election to EPIF’s seven member board 
of directors, 
while CEI 
Investments S.à 
r.l. 
are entitled 
to nominate 
two candidates: 
and (ii) 
standard minority 
shareholder’s rights, 
for example 
by setting 
forth matters 
which are 
subject to 
approval by 
members of 
the relevant 
corporate body or which require higher majority approval under the applicable 
law. 
7
 
This leverage ratio does not represent similarly named 
measures as may be defined and included in 
any documentation for 
any financial liabilities of EPIF Group 

Senior Management 
The 
senior 
management 
of 
the 
Group 
consists 
of 
CEO, 
the 
Finance 
Director, 
the 
Director 
of 
Financing 
and 
Treasury and four segment directors. 
Václav Paleček 
Finance Director 
Mr. Paleček has been the Finance Director since 1 June 2020. 
He 
has 
been 
employed 
in 
the 
EPH 
group 
since 
2014. 
Among 
other 
worth 
mentioning 
duties 
of 
Mr. 
Paleček 
comprise 
a 
membership 
in 
the 
Company’s 
Risk 
committee 
and 
Stredoslovenská 
energetika, 
a.s. 
and 
SPP Infrastructure, a.s. 
audit committee. 
Mr. Paleček is 
also a 
member of 
the board 
of directors 
of EOP 
Distribuce, 
a.s. 
and 
POWERSUN 
a.s.; 
a 
managing 
director 
of 
VTE 
Pchery, 
s.r.o., 
MR 
TRUST 
s.r.o, 
ARISUN, 
s.r.o., 
Triskata, s.r.o. 
and 
Alternative 
Energy, 
s.r.o.; 
a 
member 
of 
the 
supervisory 
board 
of 
EP 
Energy, 
a.s. 
and 
of 
Plzeňská teplárenská, a.s. 
In his previous role, Mr. 
Paleček served as the Head of Group Controlling and Financial Reporting in 
EP Power 
Europe, a.s., an 
energy utility 
focusing on 
power generation, 
lignite mining 
and renewables 
with operations 
across 
Western 
and Central 
Europe. In his 
role in 
then newly 
formed group, 
Mr. 
Paleček established 
and developed a 
central 
controlling 
function, 
which 
involved, 
among 
others, 
budgeting, 
planning, 
forecasting, 
controlling 
and 
reporting. Mr. Paleček also introduced 
a new group-wide 
reporting tool that streamlined 
and unified the reporting 
process across EP Power Europe, a.s. 
Before joining EPH, Mr. Paleček spent 
five years at KPMG, 
where he held various 
positions focused on 
financial 
reporting 
under 
IFRS, 
US 
GAAP 
or 
Czech 
accounting 
standards. 
His 
portfolio 
of 
clients 
comprised 
namely 
energy, utility, 
telco and automotive segments. 
Mr. Paleček 
holds a 
master’s degree 
in economics 
from the 
University of 
Economics in 
Prague, is 
a fellow 
of 
Association 
of 
Chartered Certified 
Accountants (ACCA) 
and 
holds 
an 
Advanced Diploma 
in 
Accounting and 
Business. 
Mr. Paleček has more than 13 
years of experience in corporate finance through his positions in KPMG and EPH 
group. 
In 
particular, 
he 
led 
or 
participated 
on 
several 
projects 
in 
areas 
of 
M&A, 
corporate 
restructuring, 
refinancing including 
primarily bank debt 
and bonds, cooperation 
with rating agencies 
or ESG initiatives 
in EPIF.
Tomáš Miřacký 
Director of Financing and Treasury 
Mr. Miřacký has been the Director of Financing and Treasury since 1 March 2017. 
Mr. 
Miřacký is also 
Deputy Chief Financial 
Officer of EPH 
and holds other 
positions outside of the 
Group. He 
has been employed in the EPH group since November 2012. 
Mr. Miřacký is also a 
member of the 
board of directors 
of POZAGAS a.s. 
and EP UK 
Finance Limited and 
serves 
on 
the 
Company’s 
Risk 
committee. 
Prior 
to 
joining 
the 
Group, 
Mr. 
Miřacký 
worked 
for 
over 
eight 
years 
on 
different positions at The Royal Bank of Scotland (previously ABN AMRO Bank). 
From 2004 until 2012, 
as part of ABN 
AMRO Bank and 
later as part of 
the Royal Bank 
of Scotland, Mr. Miřacký 
held different positions 
with focus on 
corporate finance 
in the Czech 
and Slovak Republic. 
In the following 
years, 
Mr. 
Miřacký 
focused 
on 
corporate 
financing 
in 
Germany 
and 
Austria. 
During 
this 
time, 
Mr. 
Miřacký 
gained 
detailed knowledge of different financing 
solutions including working capital 
and capital expenditures financing, 
leverage increasing 
transactions, acquisitions, 
bank guarantees 
and bonds 
and cooperated 
with 
different teams 
within the 
Czech Republic and 
Europe. Since 2012, 
as part of 
the Group, 
Mr. 
Miřacký worked 
on many 
of the 
Group’s 
financing transactions. 
Mr. 
Miřacký subsequently 
participated in 
designing the 
financing strategies 
of 
the 
Group 
and 
EPH, 
including 
its 
subsidiaries. 
The 
scope 
of 
Mr. 
Miřacký 
practice 
covers 
bank 
debt, 
bonds, 
working capital lines, 
rating and all 
related activities, including managing 
the legal streams 
in cooperation with 
legal teams. Apart 
from financing, Mr. Miřacký 
actively participates 
in the Group’s risk 
management and its 
ESG 
initiatives. 
Mr. Miřacký holds a master’s 
degree in law from Masaryk University in Brno and bachelor’s degree in business 
administration from University of New York in Prague. 

Tomáš Mareček 
Director of the Gas Transmission Business 
Mr. Mareček 
has 
been 
the 
Director 
of 
Gas 
Transmission 
Business 
since 
24 
January 
2013. 
He 
also 
serves 
as 
chairman of the board of directors of eustream, a.s. since 2013. 
Mr. 
Mareček is 
also 
a 
member 
of 
the 
board 
of 
directors 
of 
Košík 
Holding a.s.; 
managing 
director of 
MFresh 
Holding 1 s.r.o.; and a member of the supervisory board of Košík.cz s.r.o. 
Mr. 
Mareček has 
more than 
15 years 
of experience 
and in 
his previous 
roles he 
also served 
in the 
supervisory 
board 
of 
EP 
Industries, 
a.s. 
and 
held 
the 
positions 
of 
senior 
analyst 
of 
mergers 
and 
acquisitions 
at 
J&T 
and 
financial officer at Kablo Vrchlabí a.s. 
Mr. Mareček holds a master’s degree in finance from the University of Economics in Prague. 
David Onderek 
Director of the Heat Infra Business 
Mr. Onderek has been the Director of the Heat Infra Business since 9 May 2016. 
Mr. Onderek has 
also been the director of 
heat and cogeneration division and the 
head of investment committee 
of EP Energy since March 2013. 
Mr. 
Onderek is also 
a chairman of 
the board of 
directors of United Energy 
a.s., Severočeská teplárenská, a.s., 
a 
member of 
the board 
of directors 
of Plzeňská 
teplárenská a.s., 
Elektrárny Opatovice 
a.s., EP 
Sourcing, a.s, 
EP 
Cargo a.s. and EP Resources CZ a.s.; a managing director of AISE, s.r.o. He also serves on the boards of several 
companies that are affiliated with EPIF. 
Mr. 
Onderek 
has 
more 
than 
20 
years 
of 
experience 
and 
prior 
to 
joining 
the 
Group 
he 
worked 
as 
the 
head 
of 
portfolio development at ČEZ, a.s., a leading Czech energy company. 
Mr. Onderek 
holds 
a 
M.Sc. 
degree 
in 
management 
of 
power 
generation 
and 
distribution 
from 
the 
Faculty 
of 
Electrical Engineering 
of the 
Czech Technical University 
in Prague 
and a 
master of 
business administration 
degree 
from the University of Pittsburgh. 
František Čupr 
Director of Gas and Power Distribution Business 
Mr. Čupr is the 
Director of 
Gas and 
Power Distribution 
Business since 
2 January 
2013. He 
also serves 
as chairman 
of the board 
of directors of 
Stredoslovenská distribučná, 
a.s. and SPP 
- distribúcia, a.s. 
since 2013. 
He also serves 
on the Company’s Risk committee and leads the Company’s health and safety committee. 
Mr. Čupr is also a chairman of the board of directors of SPP 
Infrastructure, a. s. and AC Sparta Praha 
fotbal, a.s.; 
a member of the board of directors of EP Sport Holdings, a.s., 
1890s holdings a.s., ACS PROPERTIES, a.s.; and 
manager responsible predominantly for renewable energy sources. 
Mr. Čupr has more than 20 years of experience in the business. 
Mr. Čupr 
holds 
a 
master’s 
degree 
in 
economics 
from 
the 
Faculty 
of 
Business 
and 
Economics 
of 
the 
Mendel 
University in Brno and a master of business administration from the Nottingham 
Trent University. 
Martin Bartošovič 
Director of Gas Storage Business 
Mr. Bartošovič is the Director of Gas Storage Business 
since 9 May 2016. Mr. Bartošovič has also been 
the chief 
executive officer and authorised 
signatory of NAFTA 
a.s. since October 2012 as 
well as a member 
of the board 
of 
directors 
of 
POZAGAS 
a.s. 
since June 2013 
and 
its 
chairman 
since 
July 2016. 
Mr. Bartošovič 
is 
also 
a 
managing 
director 
of 
SPP 
Storage, 
s.r.o. 
and 
CNG 
Holding 
Netherlands 
B.V. 
and 
a 
member 
of 
the 
board 
of 
directors of NAFTA Germany GmbH. 
Prior to 
joining the 
Company, 
Mr. Bartošovič 
held the position 
of a 
member of 
the board 
of directors 
of SPP 
- 
distribúcia, a.s. 
and the 
position of 
division director 
of Slovenský 
plynárenský priemysel, 
a. s. 
Prior to 
that, he 
worked for 
six years 
at A.T. 
Kearney, 
a leading 
global management 
consulting firm 
and for 
two years 
at ING 
Bank, a leading international bank. 

Mr. 
Bartošovič has 
more than 
20 
years 
of 
experience in 
the 
energy 
industry 
in 
addition 
to 
the 
background in 
management consulting and banking. 
Prior to joining 
the Group, he 
held various positions at 
A.T. 
Kearney and 
ING Barings with focus on strategy, restructuring, post-merger-integration and mergers and acquisitions. 
Mr. Bartošovič holds a Dipl. 
Ing. degree in corporate finance from the Faculty of Economics and Finance at the 
Slovak Agricultural 
University and 
took part 
in several 
study programs 
at the 
West Virginia University, University 
of Delaware and Cornell University. 
Board of Directors 
The 
Board 
of 
Directors 
has 
seven 
members, 
all 
of 
which 
are 
executive 
directors. 
Members 
of 
the 
Board 
of 
Directors are elected by the EPIF’s general meeting of shareholders (the “General Meeting”) for a term of office 
of 
three 
years. 
Re-election of 
the 
members 
of 
the 
Board 
of 
Directors 
is 
permitted. 
Members 
of 
the 
Board 
of 
Directors are obliged 
to discharge 
the office 
with the necessary 
loyalty as well 
as the necessary 
knowledge and 
care and to bear full responsibility for such tasks, as required by the Czech 
Corporations Act. 
The Board of Directors is the 
EPIF’s statutory body, which directs its operations and acts on its 
behalf. No-one is 
authorised to give the Board of Directors instructions 
regarding the business management of 
the EPIF, unless the 
Czech Corporations 
Act or 
other laws 
or regulations 
provide otherwise. 
The powers 
and responsibilities 
of the 
Board of Directors are 
set forth in 
detail in the Articles 
of Association. The Board of 
Directors meets regularly, 
usually once a month. 
The members of the Board of Directors are 
engaged in the daily management of the Company and authorised to 
decide 
on 
the 
business 
management 
of 
the 
Company 
or 
its 
parts. 
Responsibilities 
for 
daily 
management 
of 
principle business activities 
of the Company 
are allocated to 
appropriate members 
of the Board 
of Directors based 
on their 
primary business focus 
and expertise. Each 
member of 
the Board 
of Directors is 
obliged to 
inform the 
Board of Directors 
how the 
Company’s affairs are managed. 
The responsibility 
for decisions 
about the 
basic focus 
of business management and basic focus of supervision over 
the Company’s activities rests with 
all members of 
the Board of Directors and the separation of powers 
between members of the Board of Directors does 
not release 
the 
other 
members 
of 
the 
Board 
of 
Directors 
from 
the 
equal 
responsibility 
for 
all 
decisions 
of 
the 
Board 
of 
Directors, or obligation to supervise how the Company’s affairs are managed. 
The Board of 
Directors constitutes a 
quorum if at 
least six directors 
are present at 
the meeting. In 
accordance with 
the EPIF’s 
articles of association, if a 
Board of Directors meeting 
fails to constitute a 
quorum, there shall be 
an 
adjourned meeting 
within one 
week after 
the original 
meeting (or 
on another 
date agreed 
by the 
Chairman and 
both Vice-Chairmen), where the same quorum requirement 
will apply. If this first adjourned meeting also 
fails to 
constitute a 
quorum, there 
shall be 
a second adjourned 
meeting on 
or after 
the next 
business day 
following the 
first adjourned meeting, 
where the presence 
of at least 
four directors will 
constitute a quorum. 
Decisions of the 
Board of Directors are made by simple 
majority vote of all the members of the 
Board of Directors. Each member 
of the Board of Directors has one vote. With the consent of all members, per rollam voting is also allowed. 
Members of the Board of Directors 
Daniel Křetínský 
Chairman of the Board of Directors 
Mr. Křetínský has been the Chairman of the Board of Directors since December 2013. 
Mr. 
Křetínský was involved through 
his role as 
a partner in 
the J&T Group in 
the founding of EPH, 
the EPIF’s 
parent company, where he has served as Chairman of the Board of Directors since 2009 and currently is also the 
majority owner of 
EPH. Mr. 
Křetínský serves on 
the boards of 
several companies that 
are affiliated 
with EPIF, 
including its parent company EPH, 
and its sister company EP Investment Advisors, 
s.r.o. He also holds positions 
at companies unaffiliated to EPIF, including Chairman of the Board of AC Sparta Praha fotbal, a.s. 
Mr. 
Křetínský holds a bachelor’s 
degree in political 
science as well 
as a master’s 
degree and a 
doctorate in law 
from Masaryk University in Brno. 

Gary Wheatley Mazzotti 
Vice-chairman of the Board of Directors 
and Chief Executive Officer 
Mr. Mazzotti 
has been 
a member 
and Vice 
-Chairman of the 
Board of 
Directors since June 
2017, and 
the Chief 
Executive Officer 
since August 2021. 
He also 
serves on 
the 
Company’s 
Risk committee 
and 
Health & 
Safety 
Committee. 
Mr. Mazzotti is also a member of 
the board of directors 
of United Energy, a.s., EOP Distribuce, a.s., Severočeská 
teplárenská, a.s., EP 
Power Europe, a.s. 
and EP Cargo 
a.s. and a 
member of the 
supervisory board 
of NAFTA a.s., 
SPP - 
distribúcia, a.s., Stredoslovenská 
distribučná, a.s., Stredoslovenská 
energetika Holding, a.s. 
and Plzeňská 
teplárenská, a.s. 
Outside of the Group Mr. Mazzotti is also an independent director of International School of Prague. 
Mr. Mazzotti has 
more than 30 years of 
experience in finance and 
operations, having joined the 
Company from 
Vienna 
Insurance 
Group 
where 
he 
was 
a 
member 
of 
the 
board 
and 
chief 
financial 
officer 
of 
Kooperativa 
pojišťovna, a.s., Vienna Insurance Group and Česká podnikatelská pojišťovna, a.s., Vienna Insurance Group and 
was responsible 
for VIG 
groups operations 
in Ukraine. 
Prior to 
this Mr. 
Mazzotti held 
the positions 
of senior 
investment director 
and chief 
financial officer 
of PPF 
Private Equity 
Division as 
well as 
chief financial 
officer 
and chief operating officer of AAA Auto a.s. 
Mr. Mazzotti graduated 
in 
economics 
from 
the 
University 
of 
Reading 
in 
the 
United 
Kingdom, 
and 
is 
also 
a member of the Institute of Chartered Accountants (ACA).
Stéphane Brimont 
Vice-chairman of the Board of Directors 
Stéphane 
Brimont is 
a 
representative of 
CEI 
Investments 
S.à 
r.l., 
a 
consortium managed 
by 
Macquarie 
Asset 
Management (MAM), which owns a 31% stake in EPIF. 
Mr. 
Brimont has been 
a member of 
the Board of 
Directors since February 
2017 with a 
short break in 
2020 and 
2021, he was reappointed in 
November 2021 as a Vice-chairman. Mr. Brimont is the head of 
MAM’s French and 
Benelux operations and is also 
vice-chairman at Autostrade per l’Italia 
and a director of MEIF 
Power Romania, 
Hedno and APEX 
Energies. He 
began his career 
with the 
French government 
where he 
spent a total 
of eight 
years. 
In 
2004, 
he 
joined 
Gaz 
de 
France 
as 
chief 
strategy 
officer 
and 
became 
their 
chief 
financial 
officer 
in 
2007. 
Following the integration of Gaz de France and Suez, Mr. Brimont moved into a general management role. 
Mr. Brimont graduated from École Polytechnique and the École Nationale des Ponts et Chaussées, France. 
Pavel Horský 
Member of the Board of Directors 
Mr. Horský has been a member of the Board of Directors since December 2013. 
Mr. Horský is a member of the board of directors of 
EPH and chief financial officer of EPH and holds a number 
of other 
positions within 
the Group 
as well 
as outside 
the Group. 
At the 
same time, 
Mr. Horský serves as 
a member 
of the Company’s Risk 
committee. 
Prior to 
joining the 
Company, Mr. Horský held a 
market risk 
advisory position 
at the Royal Bank of Scotland. 
Mr. 
Horský serves on boards 
of directors and supervisory boards of several of EPH’s 
subsidiaries and affiliates, 
including EP Infrastructure a.s. and EP Power Europe a.s. 
Marek Spurný 
Member of the Board of Directors 
Mr. Spurný has been 
a member 
of the Board 
of Directors 
since December 
2013. Currently, Mr. Spurný is 
the chief 
legal counsel and a member of the board of directors of EPH and serves on multiple boards of companies within 
the Group, as well as outside the Group. 
Prior to joining 
EPIF, 
Mr. 
Spurný held various positions 
within EPH, its 
subsidiaries and the J&T 
Group (prior 
to the formation of 
EPH). Between 1999 
and 2004, Mr. Spurný worked 
for the Czech 
Securities Commission (the 
capital markets supervisory body at that time). 

His 
background 
is 
legal. 
As 
such, 
he 
holds 
the 
position 
of 
Chief 
Legal 
Counsel 
of 
the 
Group, 
with 
main 
responsibilities for 
transaction execution, 
negotiations and 
implementation of 
merger and 
acquisition transactions, 
restructurings, and 
legal 
support in 
general. Mr. 
Spurný holds 
several positions 
in 
the 
corporate bodies 
of 
the 
group 
companies 
on 
the 
parent 
holding 
levels 
(member 
of 
the 
boards 
of 
directors 
of 
EPH), 
as 
well 
as 
the 
subsidiaries of 
EPH group, 
including subsidiaries 
in EPIF. Before 
joining the 
group, Mr. Spurný 
had been 
working 
for five years for the Czech Securities Commission, the former capital markets regulatory authority in the Czech 
Republic. 
Mr. Spurný holds a law degree from Palacky University in Olomouc. 
William Price 
Member of the Board of Directors 
William 
Price 
is 
a 
representative 
of 
CEI 
Investments 
S.à 
r.l., 
a 
consortium 
managed 
by 
Macquarie 
Asset 
Management (MAM), which owns a 31% stake in EPIF. 
Mr. 
Price 
has 
been 
a 
member 
of 
the 
Board 
of 
Directors 
since 
October 
2020. 
Before 
October 
2020, 
he 
was 
a 
member of the Supervisory Board since February 2017 and its Vice Chairman since June 2017. Mr. 
Price is also 
a member of the board of directors of EP Energy, a.s. 
Outside the Group, Mr. Price is 
also a member of 
the board of directors 
of Czech Grid Holding, 
a.s. Mr. Price has 
over 15 
years of 
experience in 
infrastructure investment 
and management, 
primarily in 
the utilities 
and energy 
sector. This experience is primarily across the UK, Germany and Central Europe. 
He also holds non-executive board positions at various other MAM-managed 
investments. 
Mr. 
Price 
holds 
a 
bachelor’s 
degree 
in 
economics 
and politics 
from the 
University of 
Bristol 
and 
a master 
of 
finance degree from INSEAD Business School. 
Milan Jalový 
Member of the Board of Directors 
Mr. Jalový has been a member of the Board of Directors since February 2017. 
Mr. Jalový holds the position of 
controlling director at EP Power Europe, a.s., and is the head of analytical team 
at EPH. He has been working within the EPH group since its establishment. 
Mr. Jalový is also a 
managing director of 
Lausitz Energie Verwaltungs GmbH and EP 
Mehrum GmbH, a 
member 
of the supervisory 
board of EP 
Energy a.s., Heureka 
Group a.s., Lausitz 
Energie Bergbau AG and 
Lausitz Energie 
Kraftwerke AG. 
Mr. Jalový holds a master’s degree 
from the University of 
Economics in Prague 
and also the CEMS 
MIM degree. 
Supervisory Board 
The Supervisory Board has six members elected by 
the General Meeting. Members of the Supervisory Board 
are 
elected for a three year term and may be re-elected. 
The Supervisory Board is responsible 
for the supervision of activities 
of EPIF and of the 
Board of Directors in 
its 
management 
of 
EPIF 
and 
resolves 
on 
matters 
defined 
in 
the 
Czech 
Corporations 
Act 
and 
the 
Articles 
of 
Association. The Supervisory 
Board’s powers include the power 
to inquire into all 
documents concerned with 
the 
activities of the EPIF, including inquiries 
into the EPIF’s financial matters, 
review of the financial 
statements and 
profit allocation proposals. 
No-one is authorised to give the Supervisory Board instructions regarding their review of the Board of Directors 
in its management of EPIF. The Supervisory Board shall adhere to the 
principles and instructions as approved 
by 
the General Meeting of 
shareholders, provided these are 
in compliance with legal 
regulation and the 
Articles of 
Association. 
The Supervisory Board 
constitutes a 
quorum if 
at least 
five members are 
present at 
the meeting. 
In accordance 
with the EPIF’s articles of association, if a Supervisory 
Board meeting fails to constitute 
a quorum, there shall be 
an adjourned meeting within one week 
after the original meeting (or on 
another date agreed by the Chairman 
and 
the Vice-Chairman), where 
the same quorum requirement will apply. 
If this first adjourned meeting also fails 
to 

constitute a 
quorum, there 
shall be 
a second adjourned 
meeting on 
or after 
the next 
business day 
following the 
first adjourned meeting, 
where the presence 
of at least 
four Supervisory Board 
members will constitute 
a quorum. 
Decisions of the 
Supervisory Board are made 
by simple majority vote 
of all Supervisory Board 
members. Each 
Supervisory Board member has one vote. With the consent of all members, per rollam voting 
is also allowed. 
Members of the Supervisory 
Board 
as 
at 
31 December 2022 
were: 
Jan Špringl (chairman) 
Martin Gebauer (vice-chairman) 
Petr Sekanina (member) 
Jiří Feist (member) 
Jan Stříteský (member) 
Rosa Maria Villalobos Rodriguez 
(member) 
Audit Committee 
The Audit 
Committee’s 
authority and 
responsibilities are 
determined by 
the Czech 
Act No. 
93/2009 Coll., 
on 
Auditors, 
as 
amended 
(the 
“
Czech 
Auditors 
Act
”) 
and 
the 
Articles 
of 
Association 
as 
well 
as 
the 
Terms 
of 
Reference approved by the 
General Meeting. The Audit 
Committee mainly oversees the 
financial reporting and 
risk management 
of the 
Company and 
reviews internal 
financial controls 
(including internal 
audit) and 
the process 
of 
statutory 
audit 
of 
the 
Company. 
The 
Audit 
Committee 
makes 
recommendations 
in 
respect 
of 
selection 
of 
external auditor and its 
remuneration, as well as 
in respect of policy 
for awarding non-audit services 
to external 
auditor. 
The Audit Committee has 
three members. Meetings of 
the Audit Committee are 
held not less than 
two times in 
each financial 
year. 
With 
the consent 
of all 
members, 
per rollam
 
voting is 
also allowed. 
The Audit 
Committee 
informs the 
Board of 
Directors and 
Supervisory Board 
about its 
activities and, 
with respect 
to areas 
within its 
remit, submits recommendations to the Supervisory Board as it deems appropriate. The Audit Committee adopts 
a decision by 
a majority vote of 
all its members. The 
quorum for a 
meeting of the Audit 
Committee is a simple 
majority of all its members. 
Members of the Audit 
Committee 
as 
at 
31 December 2022 
were: 
Václav Moll (chairman) 
Gary Wheatley Mazzotti 
(member) 
Jakub Šteinfeld 
(member)
Risk Committee 
EPIF 
approaches 
the 
risk 
management 
with 
due 
diligence. 
Market, 
credit, 
operational 
and 
business 
risks 
are 
continuously identified and 
evaluated in terms 
of the probability 
of occurrence and 
extent of possible damage 
and 
reported to the internal 
Risk Management Committee. The Risk 
Committee is an advisory body 
to the Board of 
Directors and 
submits regular 
reports to 
the Board 
of Directors. 
Existing risks 
are continuously 
monitored and 
updated. The committee's 
scope includes, in 
particular, discussing the Group's 
identified risks and 
approving their 
management strategy. The Committee also regularly evaluates the overall risk situation 
of the Group. The aim of 
the risk management system is to protect the value of EPIF Group while taking 
on an acceptable level of risk. 
Members of the Risk 
Committee 
as 
at 
31 December 2022 were: 
Michal Buřil (chairman) 
Gary Wheatley Mazzotti 
(member) 
Pavel Horský (member) 
Tomáš Miřacký (member) 

Václav Paleček 
(member) 
František Čupr 
(member) 
Szilard Kasa (member) 
HSE Committee 
The Health & 
Safety Committee is 
responsible for developing 
and overseeing of 
health and 
safety policies and 
procedures 
improving 
work 
health 
and 
safety 
environment 
within 
the 
Group 
operations 
and 
monitoring 
compliance with 
Group’s 
health and 
safety policies. 
The Health 
& Safety 
Committee has 
seven members. 
The 
Health & Safety Committee submits regular reports to the Board of Directors. 
Members of the HSE 
Committee 
as 
at 
31 December 2022 were: 
František Čupr 
(chairman) 
František Kajánek 
Marek Bobák 
Tereza Vlachová 
William Price 
Mark Mathieson 
Gary Wheatley Mazzotti 
3)
ESG and sustainability 
Throughout 
2022, 
EPIF 
continued 
to 
focus 
on 
its 
performance 
in 
the 
environmental, 
social 
and 
governance 
(“ESG”) matters, 
acknowledging its 
responsibility for 
the environment, 
employees, communities, 
and all 
other 
stakeholders. In December 2022, EPIF received 
an ESG Risk Rating of 
18.2 from Morningstar Sustainalytics, a 
leading 
provider 
of 
environmental, 
social 
and 
governance 
research, 
ratings 
and 
data 
assessing 
companies’ 
resilience to environmental, social and governance risks. This result represents an improvement in the score (the 
lower score, the better) from 20.0 received last year and confirms EPIF’s position in the low-risk category. EPIF 
secured 5th position 
out of over 
80 companies 
from the multi-utilities 
sector. In addition, in 
November 2022 EPIF 
obtained 
an 
updated 
ESG 
evaluation 
from 
S&P 
Global 
Ratings 
with 
a 
score 
of 
63/100, 
representing 
a 
slight 
deterioration compared to 66/100 from last year (the higher score, the better). 
As a key 
energy player, 
EPIF is aware 
of its role 
in the ongoing 
transformation of the energy 
system in Europe 
with the objective to 
limit the threat posed 
by climate change. EPIF fully 
supports the resolutions passed by 
the 
Paris 
Climate 
Conference 
in 
2015, 
committing 
all 
the 
countries 
involved 
to 
limiting 
the 
global 
temperature 
increase 
to 
significantly 
less 
than 
2 
degrees 
Celsius 
compared 
with 
the 
pre-industrial 
level. 
In 
2021, 
EPIF 
reinforced its ongoing decarbonization 
efforts with formal targets and 
set a carbon neutrality 
goal for 2040, going 
beyond 
the 
official 
2050 
EU 
carbon-neutrality 
objective. 
This 
long-term 
goal 
is 
supported 
by 
a 
clear 
decarbonization roadmap, 
transitioning the 
Group generation 
assets away 
from lignite 
to a 
balanced mix 
of CCGT 
units (enabling partial 
combustion of renewable 
gases), biomass units 
and waste-to-energy plants 
by 2030. Our 
decarbonization and energy 
transition plans and 
ongoing efforts 
are described below 
in the 
section 
Information 
on environmental protection and decarbonization activities
. 
Operating 
key 
infrastructure 
assets 
in 
Central 
Europe 
which 
represent 
a 
cornerstone 
of 
EPIF 
business, 
EPIF 
remains 
committed 
to 
contributing 
to 
energy 
security 
in 
the 
region 
by 
providing 
reliable 
supplies 
of 
key 
commodities to end 
consumers. Safeguarding stable 
supplies of natural 
gas also plays 
a vital role 
in the 
energy 
transition 
in 
Europe as 
EPIF views 
natural 
gas 
as 
a potential 
low-emission 
bridging fuel 
for 
base 
load 
power 
generation to complement intermittent renewable generation sources. 
In June 2022, EPIF issued its fourth Sustainability report covering year 2021. Sustainability report for year 2022 
is planned to 
be issued during 
Q2 2023. The 
report covers a 
wide spectrum of 
economic, environmental, social 

 
 
 
 
and 
governance related 
topics 
and 
enables 
report 
users 
to 
obtain 
a 
comprehensive understanding 
of 
the 
EPIF 
Group’s business and the links 
between EPIF’s strategy and commitment to a sustainable global economy. 
EPIF 
Group 
is 
currently 
in 
the 
assessment 
process 
of 
the 
alignment 
of 
its 
activities 
with 
the 
EU 
Taxonomy 
Regulation, a classification system 
establishing a list of 
environmentally sustainable economic 
activities which is 
supposed to 
direct investments towards 
sustainable projects. The 
results of this 
assessment will be 
disclosed as 
part of the EPIF sustainability report for the year 2022. 
4)
Information on environmental protection and decarbonization activities 
In 
2022, 
the 
EPIF 
Group 
continued 
to 
be 
very 
active 
in 
respect 
of 
the 
environmental 
protection 
and 
decarbonization of its operations. The companies within 
the EPIF Group are operated in a manner to ensure 
their 
failure-free operation 
and high efficiency 
in producing 
electricity and 
heat, which has 
direct impact 
on the volume 
of produced emissions. 
The 
EPIF 
Group 
activities 
are 
regulated 
by 
a 
number 
of 
environmental 
regulations 
in 
the 
Czech 
Republic, 
Slovakia and 
Germany. These include 
regulations governing 
the discharge 
of pollutants, 
the handling 
of hazardous 
substances and their 
disposal, cleaning of 
contaminated sites and 
health and safety 
of employees. For 
example, 
the EPIF Group 
is subject to 
regulations imposing strict 
limits on emissions 
of sulphur oxides, 
nitrogen oxides, 
carbon monoxide and solid dust particles emissions. 
Heat Infrastructure decarbonization 
The 
heating plants 
represent the 
major 
contributor to 
the 
carbon footprint 
of 
the 
EPIF 
Group as 
they 
are still 
predominantly lignite-fired. Within this business segment, EPIF aims to implement its 
decarbonization roadmap 
and convert all assets away from lignite to a balanced 
mix of highly efficient gas-fired plants, biomass units and 
waste incinerator plants 
by 2030. The 
selected technologies will 
also be prepared 
for the combustion 
of emission-
neutral synthetic gases or hydrogen once 
these are available on a 
commercial scale. The conversion projects are 
already in advanced 
preparatory phase 
with procurement 
process ongoing. 
The projects 
are expected 
to be 
eligible 
for 
investment 
subsidies 
from 
the 
Modernization 
Fund 
which 
has 
a 
dedicated 
programme 
HEAT 
aimed 
at 
transformation 
of 
district 
heating 
systems, 
including 
change 
in 
the 
fuel 
base. 
For 
several 
projects, 
subsidy 
applications have been already submitted. 
Elektrárny 
Opatovice, 
a.s. 
aims 
to 
replace 
existing 
lignite 
units 
with 
less 
emission-intensive 
sources 
such 
as 
natural gas and potentially municipal waste, depending on discussions with local authorities. The modernization 
of the 
generation source 
should take 
place by 
the end 
of 2030, 
which is 
in line 
with the 
EPIF coal 
exit commitment. 
In 2022, United 
Energy, 
a.s. continued to focus 
on development plans in 
the area of 
diversification of the types 
of fuels used 
for the production 
of the main 
commodities (heat and electricity) 
and the preparation 
of a gradual 
decline in the use of coal. 
After refurbishment of former lignite 
boiler K6 for 100% biomass 
combustion in 2021, 
UE gradually increased 
share of biomass 
in the fuel 
mix, partly replacing 
lignite. UE 
also commenced 
preparatory 
works for commissioning 
of gas-fired turbines 
to replace existing lignite 
units around 2026. The 
first investments 
will be realized already during 2023. The gas units are planned to 
be complemented by a waste incinerator plant, 
for which a building permit has been already secured. 
At 
Plzeňská 
teplárenská, share 
of 
biomass 
in 
the 
fuel 
mix 
increased 
after 
a 
boiler 
co-combusting 
lignite with 
biomass was refurbished in 
2021, raising the 
share of biomass in 
the boiler to 
80% with potential to 
increase to 
100% 
in 
the 
future. 
This 
complemented 
a 
dedicated biomass 
unit 
and 
waste 
incinerator 
plant. 
The 
remaining 
lignite units operated by PLTEP 
are expected to be replaced with gas-fired units ready to partially accommodate 
renewable gases. 
Gas infrastructure - energy transition plans
Owing to its 
critical midstream and 
downstream gas infrastructure, 
the Group is 
uniquely positioned to 
be a front-
runner in the accommodation 
of hydrogen across its entire 
gas value chain with several 
projects already launched 
to assess readiness for large-scale transmission, storage, and distribution of hydrogen. 

The Slovak gas transmission system operator eustream prepares its network for transporting renewable and low-
carbon gases. According to EU Regulation 
on gas and hydrogen networks, 
all TSOs shall accept gas flows 
with 
a hydrogen content of 
up to 5% by volume 
at interconnection points between 
Union Member States in 
the natural 
gas system from 1 
October 2025. Eustream 
aims to be ready 
for 5% hydrogen 
blend 1 year 
ahead of this 
deadline. 
With 
the current 
volumes of 
natural gas 
transmission, Slovakia 
will be 
soon technologically 
ready to 
transport 
theoretically 
more 
than 
2 
bcm 
of 
hydrogen 
per 
year 
and 
thus 
to 
accommodate 
expected 
gradual 
increase 
in 
hydrogen supply/demand. 
Given that eustream 
operates 4-5 parallel 
pipelines, it is 
well positioned 
to dedicate one 
pipe to hydrogen, while accommodating 
the natural gas flows in the 
transitional period. Eustream is a 
member of 
the Central 
European Hydrogen Corridor 
(CEGH) initiative, 
aiming to 
connect areas 
with potentially 
abundant 
hydrogen 
supply 
sources 
in 
Ukraine 
with 
large 
demand 
areas 
in 
Germany. 
EUS 
also 
joined 
the 
international 
industry partnership 
for the 
production and 
supply of 
green hydrogen 
"H2EU+Store", which 
is focused 
on the 
entire supply chain from hydrogen production to its transit and storage. 
As 
eustream 
and 
other 
gas 
transmission 
operators 
in 
Europe 
take 
actions 
to 
accommodate 
hydrogen 
in 
their 
pipelines, it is essential for downstream network operators to assess and adapt their infrastructure as well. SPP – 
distribúcia, a.s. 
successfully completed 
a pilot 
project in 
2022 where 
it blended 
10% of 
hydrogen into 
the gas 
distribution network in a small village in Slovakia and tested interaction of the networks as well as appliances at 
households and commercial customers (boilers, cookers). The 
network of SPPD is relatively modern 
and a high 
share of 
polyethylene pipes 
(57% of 
local networks) 
with superior 
permeability characteristics 
makes the 
network 
ideally positioned to accommodate pure hydrogen in the future. 
NAFTA 
seeks 
to 
identify 
both 
an 
appropriate 
location 
for 
storing 
hydrogen 
mixed 
with 
natural 
gas 
and 
the 
maximum possible 
concentration that 
could be 
stored in 
a porous 
geological structure. 
For this 
purpose, Nafta 
launched the H2I-S&D project which was approved as one 
of the first Important Projects of Common European 
Interest (IPCEI) in the hydrogen area. Nafta will be supported 
in its efforts to identify an appropriate location for 
storing hydrogen mixed with natural gas. 
Environmental protection across EPIF Group 
At 
NAFTA 
Group, 
environmental 
and 
climate 
protection 
is 
one 
of 
the 
highest 
priorities. 
NAFTA 
takes 
a 
responsible 
approach 
toward 
shutting 
down 
centres 
and 
wells 
through 
clean-ups, 
technical 
or 
biological 
reclamation of the land and 
either reincorporating it into the 
surrounding wilderness or returning 
it to agricultural 
use. NAFTA has 
already focused 
on its 
methane leakage 
and already 
belongs to 
a number 
of international 
working 
groups aimed 
at reducing 
methane emissions. 
NAFTA set specific 
emission reduction 
targets and 
adopted a 
robust 
Leak Detection and Repair (LDAR) programme to reduce methane 
leakage. 
Eustream’s 
business is inextricably 
linked to 
environmental protection and 
sustainability. 
Eustream continually 
invests in 
the streamlining 
of operations 
and state-of-the-art 
technology to 
protect the 
environment. The 
developed 
gas 
infrastructure 
has 
an 
irreplaceable role 
in 
the 
future 
transformation 
to 
a 
low-carbon 
economy. 
In 
October 
2022, 
eustream, a.s. further cemented its role of an important crossroads serving gas flows in 
various directions 
after it 
completed the development 
of the Polish-Slovakian 
Gas Interconnection. Eustream continuous 
focus on 
the quality of our facilities allows us to comply with ever stricter air protection 
legislation, including compliance 
with 
Commission 
Implementing 
Decision 
(EU) 
2017/1442, 
which, 
pursuant 
to 
Directive 
2010/75/ 
EU 
of 
the 
European 
Parliament 
and 
of 
the 
Council, 
establishes 
best 
available 
techniques 
(BAT) 
conclusions 
for 
large 
combustion 
facilities. 
Eustream 
makes 
every 
effort 
to 
actively 
prevent 
the 
release 
of 
methane 
emissions, 
in 
particular 
by 
detailed monitoring, 
timely 
corrective maintenance 
and 
thorough 
pumping 
of 
natural 
gas 
during 
pipeline maintenance. Eustream is a member of the global Oil & Gas 
Methane Partnership 2.0 (OGMP). 
Due to 
its lengthy 
network and 
significant potential 
for fugitive 
methane emissions, 
SPPD has 
concentrated its 
efforts on adopting robust 
techniques to identify 
and reduce the 
methane leakages. SPPD 
has increased frequency 
of controls of 
the older steel 
pipelines, while it 
continues a gradual 
replacement of steel 
pipes with non-permeable 
pipes made from polyethylene. In 
2022, SPPD connected the first 
biomethane station to the network, 
injecting ca 
89 MWh of biomethane every day. 
The composition of biomethane is almost identical 
to natural gas, but unlike 
the fossil methane, 
biomethane is produced from 
local renewable materials such 
as poultry or 
livestock manure 
and various 
biodegradable waste. 
In the 
short term, 
SPPD expects 
to connect 
further biomethane 
stations once 

they are 
converted from 
existing biogas 
stations. The 
total potential 
of biomethane 
in Slovakia 
is estimated 
at 
almost 400 million cubic metres in the long term. 
EPIF heating 
plants in 
the Czech 
Republic throughout 
the 
year complied 
with the 
conditions set 
in 
integrated 
permits of individual 
company premises. Emission 
limits for pollutants 
into the air 
and water set 
by the integrated 
permits for the operation of the facility were fulfilled during the year. EPIF Group enjoys a positive image in the 
market and significant 
level of political 
and public support 
resulting from the 
fact that several 
of its production 
facilities operate in a highly efficient combined cogeneration 
mode, whereby the otherwise wasted by-product of 
power generation, heat, is funnelled into a heating distribution network, thus capturing otherwise wasted energy, 
and delivered in the 
form of heat to 
our customers. This 
generation mode has much 
lower CO2 emission intensity 
than a separate production of electric energy and heat. As a result, EPIF saves energy, avoids network losses and 
improves the security of Europe's internal energy supply. 
The 
companies of 
the 
EPIF Group 
have a 
municipal 
waste 
collection system 
established. Recycling, 
reuse 
of 
material, composting 
are preferred 
over landfilling, 
which greatly 
contributes to 
reducing the 
production of 
waste. 
Plzeňská teplárenská, a.s. operates a waste-to-energy facility ZEVO Plzeň, ecological source that can use a wide 
range of waste and convert it 
into energy. 
Heat energy occurring during the 
combustion process is subsequently 
used to supply heat to the territory of Pilsen city and for the production 
of electrical energy. 
Majority of the 
core companies within the 
EPIF Group have their 
environmental management systems certified 
to ISO 
14001. These 
include certificate 
Plzeňská teplárenská, 
a.s., Elektrárny 
Opatovice, eustream, 
a.s., SPP 
– 
distribúcia, a.s., Stredoslovenská distribučná, a.s., Stredoslovenská energetika, a.s., NAFTA 
a.s. and POZAGAS 
a.s. 
Our services 
are not 
limited to 
the supply 
of and 
distribution of 
basic energy 
commodities but 
we also 
aim to 
educate 
our 
customers 
on energy 
savings and 
responsible 
behaviour with 
respect 
to 
energy. 
These efforts 
are 
manly visible 
at 
Stredoslovenská energetika, 
a.s. 
which offers 
services aimed 
at 
energy 
savings, such 
as 
LED 
lighting, highly efficient heating, heat pumps or solar 
panel installations. This is accompanied by an educational 
project 
for 
children 
in 
kindergartens 
and 
elementary 
schools, 
teaching 
them 
energy-saving 
practices 
through 
brochures, educational videos and 
games. At Elektrárny Opatovice, 
a.s. and Plzeňská teplárenská, a.s., 
customers 
are regularly informed about 
optimal temperature and efficiency. 
In 2020, Plzeňská teplárenská, 
a.s. launched a 
project focused on monitoring of energy 
consumption in selected kindergartens in the city 
of Pilsen with the goal 
to optimize their 
energy consumption and 
associated bills, the 
project continued in 
2022 and is 
expected to spread 
to other public buildings. 
5)
Social and governance matters 
Employment, social relations and respect for human rights 
The main strengths 
of the EPIF 
Group include 
good relationships with 
employees and their 
loyalty. 
The Group 
maintains good and 
fair relations with the 
trade unions within 
the Group companies 
through regular meetings 
and 
discussions on 
labour, 
social and 
wage related 
issues. Similarly, 
respecting the 
human rights 
and implemented 
non-discriminatory guidelines 
are viewed 
as essential 
for securing 
employee-friendly 
working environment 
across 
the EPIF Group. 
Safety and quality management 
covers health protection at 
work, safety management systems, 
technology and human resources all of which are an integral part of 
the management of the EPIF Group. 
EPIF Group upholds all principles of the United Nations Global Compact 
in respect 
of labour: 
●
The freedom of association and the effective recognition of the right to collective 
bargaining; 
●
The elimination of all forms of forced and compulsory labour; 
●
The effective abolition of child labour; and 
●
The elimination of discrimination in respect of employment and occupation. 
The management 
believes that 
the EPIF 
Group, its 
companies and 
equipment are 
in compliance 
with all 
legislative 
requirements and best practice methods. Moreover, they are constantly striving to 
improve the safety level of the 
Group’s 
activities by 
introducing measures focused 
on risk 
assessment, elimination, mitigation 
and prevention. 

The EPIF 
Group also 
provides general 
training programs 
on employee 
safety and 
when selecting 
or assessing 
potential suppliers the Group also takes into account their approach 
and attitude towards security issues. 
Anti-bribery and anti-corruption procedures 
The EPIF 
Group has 
an anti-bribery 
and anti-corruption 
policy in 
place in 
order to 
ensure compliance 
with all 
applicable 
anti-bribery 
regulations, 
and 
to 
ensure 
the 
Group’s 
business 
is 
conducted 
in 
a 
socially 
responsible 
manner. This policy applies to all employees and all 
the countries and territories that the 
EPIF Group operates in. 
EPIF also requires its 
business partners to abide by 
these high standards as 
well when engaged in 
business with 
the EPIF 
Group. To complement 
and reinforce 
these efforts, 
the EPIF 
Group also 
has a 
policy in 
place on 
reporting 
of serious concerns 
which provides employees 
with the means 
to report suspected 
or actual compliance 
violations 
without fear of retaliation. 
Internal Control System 
The Group 
has taken 
reasonable steps 
to establish 
and maintain 
adequate procedures, 
systems, and 
controls to 
enable 
it 
to 
comply 
with 
its 
legal, 
regulatory 
and 
contractual 
obligations, 
including 
with 
regard 
to 
financial 
reporting, which it periodically evaluates. 
The Group does 
not have integrated 
information systems 
and each subsidiary 
has its own 
accounting platform 
and 
accounting 
methodologies. 
The 
subsidiaries 
prepare 
separate 
financial 
statements 
under 
the 
applicable 
local 
accounting standards 
for statutory 
purposes and 
part of 
the 
IFRS financial 
statements consolidation 
process is 
manual. In 2022, the Group largely implemented a Group-wide 
reporting system aimed at limiting the amount 
of 
required manual intervention. 
Each subsidiary has 
its own 
system of internal 
control that 
is designed 
to manage 
risk and diminish 
the occurrence 
of fraud at each entity based on the subsidiary’s size and nature of its business. 
ESG policies 
In March 2020, 
a set 
of new ESG 
policies was approved 
by the 
Board of Directors 
and gradually 
implemented 
across the Group entities. 
These policies reflect our 
consciousness of immense responsibility 
for ESG issues. The 
policies aligned the already existing local principles with a common and comprehensive set of unified principles 
and detailed guidelines for our daily activities. 
These policies are: 
●
EPIF Group ESG Master Policy 
●
EPIF Group Environmental Policy 
●
EPIF Group Procurement Policy 
●
EPIF Group Operational Policy 
●
EPIF Group Code of Conduct 
In 2021, these policies 
were complemented by 
●
EPIF Group Cybersecurity Principles 
●
KYC Directive 
●
EPIF Group Tax Governance Policy 
●
EPIF Anti-Corruption and Anti-Bribery Policy 
●
EPIF Anti Money Laundering Policy 
●
EPIF Sanctions Policy 
●
EPIF Anti-Trust Law Policy 
●
EPIF Whistleblower Policy 
●
EPIF Asset Integrity Policy 
●
EPIF Diversity Policy 
●
EPIF Biodiversity Policy 

General Diversity policy 
The Equality, Diversity and Inclusion Policy was approved by the EPIF 
Board of Directors in March 2021 and 
is 
publicly available on 
the EPIF website. 
The main purpose 
of the policy 
is to provide 
equality, fairness and respect 
for 
all employees 
and avoid 
any forms 
of 
discrimination on 
the 
basis of 
employee’s 
age, sex, 
disability, 
race, 
nationality, 
ethnicity, 
religion, personal beliefs 
or sexual 
orientation. The Policy 
embodies EPIF‘s commitment 
to 
encourage 
equality, 
diversity 
and 
inclusion 
among 
our 
workforce 
regardless 
of 
individual 
differences 
or 
background. The Policy applies to all employees, directors and members of statutory bodies and also all persons 
working on a contract basis. 
The EPIF Group subsidiaries 
are required to implement 
the Policy principles in their 
local 
policies 
within 
a 
designated 
time 
frame. 
EPIF 
recognizes 
that 
there 
is 
strength 
in 
the 
diversity 
of 
its 
Employees 
and 
harnessing 
these 
can 
assist 
it 
to 
improve 
the 
workplace, 
as 
well 
as 
enhancing 
its 
overall 
performance and decision-making. 
EPIF does not apply designated diversity policy applicable 
to appointment of members of the 
Company’s upper 
management and 
management is 
appointed based 
on their 
professional merit however 
the principles 
of general 
diversity policy are respected. 
Code of Conduct 
The Code 
of Conduct 
of the 
EPIF Group 
was approved 
by the 
EPIF Board 
of Directors 
in March 
2020 and 
is 
publicly available on the EPIF website. It defines standards of 
behavior, managed as a practical value for day-to-
day business and making all employees personally responsible for the performance 
and reputation of the Group, 
ensuring 
a 
good 
relationship 
with 
all 
stakeholders. 
Besides 
commitment 
to 
comply 
with 
all 
binding 
legal 
regulations, 
EPIF 
shall 
adhere 
to 
conducting 
its 
business 
activities 
in 
a 
responsible 
and 
fair 
manner 
and 
communicate transparently with 
its customers, business 
partners, suppliers and 
communities. Following approval 
at EPIF level, the 
Code was subsequently implemented across EPIF 
Group subsidiaries which fully reflected its 
principles in their local internal documents. In 2022, there were no 
reported breaches of the Code of Conduct. 
6)
Other Information 
Branches 
The EPIF Group has the following organizational units abroad: 
●
AISE, s.r.o., organizačná zložka located in Slovakia; 
●
EP ENERGY TRADING, a.s., organizačná zložka located in Slovakia 
●
NAFTA a.s. – organizační složka located in Czech Republic 
Research and development activities 
In 2022, the EPIF Group did not carry out significant research and development activities and 
as a result did not 
incur material research and development costs. 
Acquisition of own shares or own ownership interests 
During the 2022, the EPIF Group did not acquire any of its own shares 
or ownership interests within the 
Group. 
Risk management policies 
The EPIF Group’s risk management policies are set out in the notes to the consolidated financial statements. 

IV.

Report on relations

REPORT ON RELATIONS 
between the controlling and controlled entities and on relations between 
the controlled entity and other entities 
controlled by the same controlling entity (related entities) 
prepared by the Board of Directors of 
EP Infrastructure, a.s.
, (“the Company”) with its registered office at 
Pařížská 130/26, Josefov, 110 00 Praha 1, ID No: 024 13 507, in accordance with Section 82 of Act No. 
90/2012 Coll., on Business Corporations, as amended 
(“
the Report
”) 
__________________________________________________ 
I.
Preamble 
The 
Report 
has 
been 
prepared 
pursuant 
to 
Section 
82 
of 
Act 
No. 
90/2012 
Coll., 
the 
Business 
Corporations Act, as amended (“
BCA
”). 
The 
Report 
has 
been 
submitted 
for 
review 
to 
the 
Company’s 
Supervisory 
Board 
in 
accordance 
with 
Section 
83 
(1) 
of 
BCA 
and 
the 
Supervisory 
Board’s 
position 
will 
be 
communicated 
to 
the Company’s 
General Meeting 
deciding on 
the approval 
of the 
Company’s 
financial statements 
and 
on the distribution of the Company’s profit or the settlement of its loss. 
The Report has been prepared for the 2022 accounting period.
II.
Structure of relations between the entities
CONTROLLED ENTITY 
The controlled entity is EP Infrastructure, a.s. with its registered office at Pařížská 130/26, Josefov, 110 
00, Praha 
1, corporate ID: 
024 13 507 
recorded in the 
Commercial Register maintained 
by the Municipal 
Court in Prague, File B, Insert 21608.
DIRECTLY 
CONTROLLING ENTITIES:
EPIF Investments a.s.
Registered office: 
Pařížská 130/26, Josefov, 110 
00 Praha 1, 
Czech Republic
Corporate ID: 
057 11 452
INDIRECTLY 
CONTROLLING ENTITIES:
Energetický a průmyslový holding, a.s. 
Registered office: 
Pařížská 130/26, Josefov, 110 
00 Praha 1, 
Czech Republic
Corporate ID: 
283 56 250
EP Corporate Group, a.s. 
Registered office: 
Pařížská 130/26, Josefov, 110 
00 Praha 1, 
Czech Republic
Corporate ID: 
086 49 197
EP Investment S.a r.l. 
Registered office: 
2 Place de Paris, L – 2314,

Luxembourg, Luxembourg
Reg. No.: 
B 184488
OTHER CONTROLLED ENTITIES
The 
structure 
of 
relations 
between 
the 
controlling 
entity 
EP 
Investment 
S.a 
r.l. 
and 
groups 
of 
controlled 
entities 
controlled 
by 
this 
controlling 
entity 
is 
specified 
in 
Appendix 
1 
to 
the 
Report. 
The 
appendix, 
therefore, 
does 
not 
include 
the 
complete 
ownership 
structure 
of EP Investment S.a r.l., 
nor does it include shareholders holding non-controlling interests.
III.
Role of the controlled entity; method and means of control 
Role of the controlled entity 
●
strategic management of the development of a group of directly or indirectly controlled entities 
●
providing financing and developing financing systems for group entities 
●
optimising the services utilised/provided in order to improve the entire group’s performance 
●
managing, acquiring and treating the Company’s ownership interests and other assets 
Method and means of control 
The controlling entities hold a majority share 
of voting rights in EP Infrastructure, a.s. 
over which they 
exercise a controlling influence. 
IV.
Overview of acts made in 2022 
pursuant to Section 82 (2) (d) of Act No. 90/2012 
Coll., the Business Corporations Act 
In 2022, 
no actions 
were taken 
at the 
initiative or 
in the 
interest of 
the controlling 
entity in 
respect of 
assets 
exceeding 
10% 
of 
the 
controlled 
entity’s 
equity 
as 
determined 
from 
the 
most 
recent 
financial 
statements.

V.
Overview of agreements concluded by EP Infrastructure, a.s. pursuant to Section 
82 (2) (d) of Act No. 90/2012 Coll., the Business Corporations Act 
In 2022, the following loan agreements concluded by companies in the EP Infrastructure, a.s. 
Group were effective:
On 
16 
March 
2016, 
a 
loan 
agreement, 
including 
effective 
amendments, 
was 
signed 
between 
EP Infrastructure, a.s. as the creditor and Slovak Gas Holding B.V. 
as the debtor.
On 
19 
June 
2017, 
a 
loan 
agreement, 
including 
effective 
amendments, 
was 
signed 
between 
EP 
Infrastructure, a.s. as the creditor and EPH Gas Holding B.V. 
as the debtor.
On 18 October 2019, 
a loan agreement was 
signed between EP Infrastructure, 
a.s. as the creditor 
and EP 
Energy, a.s. as the debtor.
On 
27 
January 
2020, 
a 
loan 
agreement, 
including 
effective 
amendments, 
was 
signed 
between 
EP 
Infrastructure, a.s. as the creditor and EPH Gas Holding B.V. 
as the debtor.
On 
27 
September 
2021, 
a 
loan 
agreement, 
including 
effective 
amendments, 
was 
signed 
between 
EP 
Infrastructure, a.s. as the creditor and EP Energy, 
a.s. as the debtor.
On 8 September 
2022, a loan 
agreement was signed between 
EP Infrastructure, a.s. 
as the creditor 
and 
EPH Gas Holding B.V. 
as the debtor.
In 2022, the following netting agreements concluded by companies in the EP Infrastructure, a.s. 
Group were effective
A netting agreement signed between EP Energy, a.s. and EP Infrastructure, a.s. on 30 November 2022.
In 2022, the following operating contracts concluded by companies in 
the EP Infrastructure, a.s. Group were effective:
Professional 
Services 
Agreement 
signed 
between 
AISE, 
s.r.o. 
and 
EP Infrastructure, 
a.s. 
on 
12 April 2022.
Data Processing Agreement signed between AISE, s.r.o. and EP Infrastructure, a.s. on 18 March 2019.
Professional 
Services 
Agreement 
signed 
between 
Alternative 
Energy, 
s.r.o. 
and 
EP Infrastructure, a.s. on 12 April 2022.
Data Processing Agreement signed between 
Alternative Energy, 
s.r.o. and 
EP Infrastructure, a.s. on 12 
April 2022.
Professional Services Agreement 
signed between ARISUN, s.r.o. and EP Infrastructure, 
a.s. on 12 April 
2022.
Data Processing 
Agreement signed 
between ARISUN, 
s.r.o. and EP 
Infrastructure, a.s. 
on 12 
April 2022.
Professional Services Agreement signed between Dobrá Energie 
s.r.o. and 
EP Infrastructure, a.s. on 12 
April 2022.
Professional 
Services 
Agreement, 
including 
effective 
amendments, 
signed 
between 
Elektrárny 
Opatovice, a.s. and EP Infrastructure, a.s. on 12 April 2022. 

Data Processing Agreement 
signed between Elektrárny 
Opatovice, a.s. and 
EP Infrastructure, a.s. 
on 1 
October 2018.
Data Processing Agreement 
signed between Elektrárny 
Opatovice, a.s. and 
EP Infrastructure, a.s. 
on 6 
September 2022.
Professional Services Agreement signed between EOP Distribuce, a.s. and EP Infrastructure, a.s. 
on 12 
April 2022.
Professional Services Agreement signed 
between EP Cargo 
a.s. and EP 
Infrastructure, a.s. on 12 
April 
2022.
Data 
Processing 
Agreement 
signed 
between 
EP 
Cargo 
a.s. 
and 
EP 
Infrastructure, 
a.s. 
on 
26 
October 
2018. 
Professional 
Services 
Agreement 
signed 
between 
EP 
Energy, 
a.s. 
and 
EP Infrastructure, a.s. on 12 April 2022. 
Data Processing 
Agreement signed between 
EP Energy, a.s. and 
EP Infrastructure, 
a.s. on 12 
April 2022.
Professional 
Services 
Agreement 
signed 
between 
EP 
ENERGY 
TRADING, 
a.s. 
and 
EP Infrastructure, a.s. on 12 April 2022. 
Data 
Processing 
Agreement 
signed 
between 
EP 
ENERGY 
TRADING, 
a.s. 
and 
EP Infrastructure, a.s. on 1 October 2018.
Professional 
Services 
Agreement 
signed 
between 
EP 
Sourcing, 
a.s. 
and 
EP 
Infrastructure, 
a.s. 
on 
12 
April 2022. 
Data 
Processing 
Agreement 
signed 
between 
EP 
Sourcing, 
a.s. 
and 
EP 
Infrastructure, 
a.s. 
on 
26 October 2018.
Professional 
Services 
Agreement 
signed 
between 
NAFTA 
Speicher 
GmbH & Co. 
KG 
and 
EP 
Infrastructure, a.s. on 12 April 2022. 
Professional Services 
Agreement signed 
between 
Plzeňská teplárenská 
a.s. and 
EP Infrastructure, 
a.s. 
on 12 April 2022.
Data Processing 
Agreement signed 
between Plzeňská 
teplárenská a.s. 
and EP 
Infrastructure, a.s. 
on 1 
October 2018.
Data Processing 
Agreement signed 
between Plzeňská 
teplárenská a.s. 
and EP 
Infrastructure, a.s. 
on 6 
September 2022.
Professional 
Services 
Agreement 
signed 
between 
POWERSUN 
a.s. 
and 
EP 
Infrastructure, a.s. 
on 
12 
April 2022.
Data 
Processing 
Agreement 
signed 
between 
POWERSUN 
a.s. 
and 
EP 
Infrastructure, 
a.s. 
on 
12 April 2022.
Professional Services Agreement 
signed between POZAGAS a.s. 
and EP Infrastructure, a.s. 
on 12 April 
2022.
Data 
Processing 
Agreement 
signed 
between 
POZAGAS 
a.s. 
and 
EP 
Infrastructure, 
a.s. 
on 
2 January 2019.

Professional 
Services 
Agreement 
signed 
between 
Severočeská 
teplárenská, 
a.s., 
including 
effective 
amendments, and EP Infrastructure, a.s. on 12 April 2022. 
Data 
Processing 
Agreement 
signed 
between 
Severočeská 
teplárenská, 
a.s. 
and 
EP Infrastructure, a.s. on 1 October 2018.
Professional Services 
Agreement signed 
between SPP 
Storage, s.r.o. 
and EP 
Infrastructure, a.s. 
on 12 
April 2022.
Confidentiality Agreement signed 
between SPP Storage, 
s.r.o. 
and EP Infrastructure, 
a.s. on 2 
January 
2019.
Confidentiality 
Agreement 
signed 
between 
Stredoslovenská 
energetika 
Holding, 
a.s. 
and 
EP Infrastructure, a.s. on 2 November 2021. 
Professional Services Agreement signed between Triskata, 
s.r.o. and EP 
Infrastructure, a.s. on 12 April 
2022.
Data Processing Agreement signed between 
Triskata, s.r.o. and EP Infrastructure, a.s. on 12 April 2022.
Professional Services Agreement 
signed between 
United Energy, 
a.s. and 
EP Infrastructure, a.s. 
on 12 
April 2022. 
Data Processing Agreement signed between 
United Energy, a.s. and EP Infrastructure, a.s. on 
1 October 
2018.
Data 
Processing 
Agreement 
signed 
between 
United 
Energy, 
a.s. 
and 
EP 
Infrastructure, 
a.s. 
on 
6 
September 2022.
Professional Services 
Agreement signed 
between VTE 
Pchery, 
s.r.o. 
and EP 
Infrastructure, a.s. 
on 12 
April 2022.
Data Processing Agreement 
signed between VTE 
Pchery, 
s.r.o. 
and EP Infrastructure, 
a.s. on 12 
April 
2022.
Cooperation 
Agreement 
signed 
between 
Elektrárny 
Opatovice, 
a.s., 
United Energy, 
a.s., 
Plzeňská 
teplárenská, a.s. and EP Infrastructure, a.s. on 23 February 2022.
Cooperation Agreement 
signed between 
EOP Distribuce, 
a.s., United Energy, a.s., Plzeňská teplárenská, 
a.s. and EP Infrastructure, a.s. on 14 December 2022.
In 2022, the following other contracts concluded by companies in 
the EP Infrastructure, a.s. Group were effective:
On 
1 
March 
2022, 
a 
Master 
Agreement 
on 
the 
Provision 
of 
Guarantees 
was 
signed 
between 
EP 
ENERGY TRADING, a.s. and EP Infrastructure, a.s.
On 1 October 
2022, a 
Master Agreement 
on the Provision 
of Guarantees 
was signed between 
EP Energy, 
a.s. and EP Infrastructure, a.s.
On 
30 
November 
2022, 
an 
Agreement 
on 
the 
Assignment 
of 
a 
Receivable 
was 
signed 
between 
EP 
Energy, a.s. as the assignor 
, 
EP Infrastructure, a.s. as the assignee and EP ENERGY TRADING, a.s. as 
the debtor.

On 30 November 
2022, an Agreement 
on the Assumption 
of Debt was 
signed between EP 
Energy, 
a.s 
as the original debtor, EP Infrastructure, a.s. as the new debtor and AISE, s.r.o. 
as the creditor.
On 30 November 2022, an Agreement on the Assumption of Debt was signed between EP Energy, 
a.s 
as the original debtor, EP Infrastructure, a.s. as the new debtor and Elektrárny Opatovice, a.s. as the 
creditor.
On 30 November 2022, an Agreement on the Assumption of Debt was signed between EP Energy, 
a.s 
as the original debtor, EP Infrastructure, a.s. as the new debtor and EP Cargo, a.s. as the creditor.
On 30 November 2022, an Agreement on the Assumption of Debt was signed between EP Energy, 
a.s 
as the original debtor, EP Infrastructure, a.s. as the new debtor and EP Sourcing, a.s. as the creditor.
On 30 November 2022, an Agreement on the Assumption of Debt was signed between EP Energy, a.s 
as the original debtor, EP Infrastructure, a.s. as the new debtor and United Energy, 
a.s. as the creditor.
On 7 December 2022, an Agreement on the Distribution of Cash-Pool Benefits under a Real Mutual 
Cash-Pooling Arrangement for an Economically Related Group was signed between EP Infrastructure, 
a.s., EP Energy, a.s., United Energy, 
a.s., EP ENERGY TRADING, a.s., Elektrárny Opatovice, a.s., EP 
Sourcing, a.s., EP Cargo a.s. and AISE, s.r.o.
In 2022, the following operating contracts concluded by companies in 
the Energetický a průmyslový holding, a.s. Group were effective:
Professional 
Services 
Agreement 
signed 
between 
EP 
Investment 
Advisors, 
s.r.o. 
and 
EP Infrastructure, a.s. on 28 February 2022.
Data Processing 
Agreement signed 
between EP 
Investment Advisors, 
s.r.o. 
and EP 
Infrastructure, a.s. 
on 28 February 2022.
Sublease Agreement 
signed 
between EP 
Investment Advisors, 
s.r.o. 
and 
EP Infrastructure, 
a.s. on 
15 
June 2017, including all amendments.
Professional Services 
Agreement signed 
between EP 
Slovakia B.V. and EP Infrastructure, 
a.s. on 
3 April 
2017.
Professional 
Services 
Agreement 
signed 
between 
Energetický 
a 
průmyslový 
holding, 
a.s. 
as 
the provider and EP Infrastructure, a.s. as the client on 12 April 2022.
Professional 
Services 
Agreement 
signed 
between 
Energetický 
a 
průmyslový 
holding, 
a.s. 
as 
the client and EP Infrastructure, a.s. as the provider on 12 April 2022.
Data 
Processing 
Agreement 
signed 
between 
Energetický 
a 
průmyslový 
holding, 
a.s. 
and 
EP 
Infrastructure, a.s. on 12 April 2022.
In 2022, the following operating contracts concluded by companies in the EP Power Europe, a.s. 
Group were effective:
Professional 
Services 
Agreement 
signed 
between 
EP 
Power 
Europe, 
a.s. 
as 
the 
provider 
and 
EP Infrastructure, a.s. as the client on 12 April 2022.
Professional 
Services 
Agreement 
signed 
between 
EP 
Power 
Europe, 
a.s. 
as 
the 
client 
and 
EP Infrastructure, a.s. as the provider on 12 April 2022.

Data 
Processing 
Agreement 
signed 
between 
EP 
Power 
Europe, 
a.s. 
and 
EP 
Infrastructure, 
a.s. 
on 
12 
April 2022.
VI.
We 
hereby 
confirm 
that 
this 
Report 
on 
relations 
between 
related 
entities 
of 
EP 
Infrastructure, 
a.s., 
prepared pursuant to the 
provisions of Section 
82 of Act No. 
90/2012 Coll., the Business 
Corporations 
Act, 
for 
the 
accounting 
period 
from 
1 
January 
2022 
to 
31 
December 
2022, 
includes 
all 
information 
known as at the date of signing this report, regarding:
●
agreements between related entities 
●
performance and counter-performance provided to related entities 
●
other juridical acts carried out in the interest of related entities and 
●
all measures taken or implemented in the interest or at the initiative of related entities 

EP Equity Investment S.à r.l
EP Investment S.à r.l
EP Corporate Group, a.s.
Energetický a průmyslový holding, a.s.
EC Investments a.s.
EP Infrastructure, a.s.
EP Power Europe, a.s.
Others
Appendix 1

V.

Consolidated Financial Statements and Notes to the Consolidated

Financial Statements

 
EP Infrastructure, 
a.s. 
Consolidated Financial Statements 
as of and for the year ended 31 December 2022 
prepared in accordance with International Financial Reporting Standards 
as adopted by the European Union

Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
Content 
Consolidated statement of comprehensive income 
................................................................ 
............................................................. 3 
Consolidated statement of financial position 
................................................................ 
................................................................ 
...... 
4 
Consolidated statement of changes in equity 
................................................................ 
................................................................ 
...... 
5 
Consolidated statement of cash flows 
................................................................ 
................................................................ 
................. 
7 
Notes to the consolidated financial statement 
................................................................ 
................................................................ 
..... 
9 
1. 
Background 
................................................................ 
................................................................ 
.......................................... 9 
2. 
Basis of preparation ................................................................ 
................................................................ 
........................... 11 
3. 
Significant Accounting Policies 
................................................................ 
................................................................ 
......... 
15 
4. 
Determination of fair values ................................................................ 
................................................................ 
.............. 
34 
5. 
Operating segments................................ 
................................................................ 
............................................................ 36 
6. 
Acquisitions and disposals of subsidiaries, joint-ventures and associates ................................ 
......................................... 44 
7. 
Revenues 
................................................................ 
................................................................ 
............................................ 48 
8. 
Purchases and consumables ................................................................ 
................................................................ 
............... 
49 
9. 
Services 
................................................................ 
................................................................ 
.............................................. 49 
10. 
Personnel expenses ................................................................ 
................................................................ 
............................ 50 
11. 
Emission rights ................................................................ 
................................................................ 
.................................. 50 
12 
Other operating income (expenses), net 
................................................................ 
............................................................. 51 
13. 
Net finance income (expense) 
................................................................ 
................................................................ 
............ 
51 
14. 
Income tax expenses ................................................................................................ 
.......................................................... 52 
15. 
Property, plant and equipment ................................................................ 
................................................................ 
........... 
54 
16. 
Intangible assets (including goodwill) ................................................................ 
............................................................... 57 
17. 
Deferred tax assets and liabilities................................ 
................................................................ 
....................................... 60 
18. 
Inventories ................................................................ 
................................................................ 
......................................... 63 
19. 
Trade receivables and other assets ................................................................ 
................................................................ 
..... 
64 
20. 
Cash and cash equivalents ................................................................ 
................................................................ 
................. 
64 
21. 
Equity................................ 
................................................................ 
................................................................ 
................. 
64 
22. 
Earnings per share 
................................................................ 
................................................................ 
.............................. 66 
23. 
Non-controlling interest 
................................................................ 
................................................................ 
..................... 67 
24. 
Loans and borrowings 
................................................................ 
................................................................ 
........................ 69 
25. 
Provisions ................................................................ 
................................................................ 
.......................................... 81 
26. 
Deferred income ................................................................ 
................................................................ 
................................ 84 
27. 
Financial instruments 
................................................................ 
................................................................ 
......................... 85 
28. 
Trade payables and other liabilities ................................ 
................................................................ 
................................... 88 
29. 
Commitments and contingencies ................................................................ 
................................................................ 
....... 
89 
30. 
Leases ................................................................ 
................................................................ 
................................................ 89 
31. 
Risk management policies and disclosures ................................................................................................ 
........................ 90 
32. 
Related parties ................................................................ 
................................................................ 
................................. 
110 
33. 
Group entities................................ 
................................................................ 
................................................................ 
... 
112 
34. 
Subsequent events 
................................................................ 
................................................................ 
............................ 115 
Appendix 1 – Restatement 
................................................................ 
................................................................ 
.............................. 116 

 
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
3 
Consolidated statement of comprehensive income 
For the year ended 31 December 2022 
In millions of EUR (“MEUR”) 
Note 
2022 
2021 
Revenues 
7 

            4,004
          
            2,810
          
Purchases and consumables 
8 
(1,978)
(1,074)
Subtotal 

            2,026
          
            1,736
          
Services 
9 
(188)
(115)
Personnel expenses 
10 
(243)
(223)
Depreciation, amortisation and impairment 
15, 16 
(492)
(428)
Emission rights, net 
11 
(192)
(129)
Own work, capitalized 

            29
          
            26
          
Other operating income (expenses), net 
12 

            5
          
(18)
Profit (loss) from operations 

            945
          
            849
          
Finance income 
13 

            101
          
            67
          
Impairment losses on financial instruments and other financial assets 
13 

            4
          
(10)
Finance expense 
13 
(96)
(99)
Net finance income (expense) 

            9
          
(42)
Share of profit (loss) of equity accounted investees, net of tax 

            -
          
            1
          
Gain (loss) on disposal of subsidiaries 
6 

            -
          
(1)
Profit before income tax 

            954
          
            807
          
Income tax expenses 
14 
(253)
(205)
Profit for the period 

            701
          
            602
          
Items that are not reclassified subsequently to profit or loss 
Fair value reserve included in other comprehensive income, net of tax 
14 

            5
          
            -
          
Items that are or may be reclassified subsequently to profit or loss 
Foreign currency translation differences for foreign operations 
14 

            19
          
(207)
Foreign currency translation differences from presentation currency 
14 

            -
          
            205
          
Effective portion of changes in fair value of cash-flow hedges, net of tax 
14 

            104
          
(408)
Other comprehensive income (loss) for the period, net of tax 

            128
          
(410)
Total comprehensive income for the period 

            829
          
            192
          
Profit attributable to: 
Owners of the Company 

            416
          
            313
          
Non-controlling interest 
23 

            285
          
            289
          
Profit for the period 

            701
          
            602
          
Total comprehensive income attributable 
to: 
Owners of the Company 

            462
          
            80
          
Non-controlling interest 

            367
          
            112
          
Total comprehensive income for the period 

            829
          
            192
          
Total basic earnings per share in EUR 
22 

            1.29
          
            0.97
          
Total diluted earnings per share in EUR 
22 

            1.29
          
            0.97
          
The notes presented on pages 9 to 117 form an integral part of these consolidated financial statements.

 
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
4 
Consolidated statement of financial position 
As at 31 December 2022 
Note 
*
31 December 2022 
31 December 2021 
In millions of EUR (“MEUR”) 
Assets 
Property, plant and equipment 
15 

            9,562
          
            9,809
          
Intangible assets and goodwill 
16 

            330
          
            293
          
Equity accounted investees 

            1
          
            1
          
Restricted cash 

            1
          
            -
          
Financial instruments and other financial assets 
27 

            69
          
            41
          
Trade receivables and other assets 
19 

            48
          
            44
          
Deferred tax assets 
17 

            48
          
            20
          
Total non-current 
assets 

            10,059
          
            10,208
          
Inventories 
18 

            323
          
            190
          
Trade receivables and other assets 
19 

            749
          
            424
          
Contract assets 
7 

            101
          
            36
          
Financial instruments and other financial assets 
27 

            158
          
            240
          
Prepayments and other deferrals 

            12
          
            12
          
Current income tax receivable 

            16
          
            7
          
Cash and cash equivalents 
20 

            1,548
          
            501
          
Restricted cash 

            1
          
            2
          
Total current assets 

            2,908
          
            1,412
          
Total assets 

            12,967
          
            11,620
          
Equity 
Share capital 
21 

            3,248
          
            2,988
          
Share premium 

            9
          
            8
          
Reserves 
21 
(3,122)
(2,853)
Retained earnings 

            1,369
          
            899
          
Total equity attributable to equity holders 

            1,504
          
            1,042
          
Non-controlling interest 
23 

            3,071
          
            2,784
          
Total equity 

            4,575
          
            3,826
          
Liabilities 
Loans and borrowings 
24 

            4,530
          
            4,079
          
Financial instruments and financial liabilities 
27 

            44
          
            182
          
Provisions 
25 

            249
          
            264
          
Deferred income 
26 

            83
          
            94
          
Contract liabilities 
7 

            108
          
            77
          
Deferred tax liabilities 
17 

            1,688
          
            1,685
          
Trade payables and other liabilities 
28 

            2
          
            3
          
Total non-current 
liabilities 

            6,704
          
            6,384
          
Trade payables and other liabilities 
28 

            591
          
            382
          
Contract liabilities 
7 

            63
          
            79
          
Loans and borrowings 
24 

            99
          
            62
          
Financial instruments and financial liabilities 
27 

            577
          
            674
          
Provisions 
25 

            213
          
            161
          
Deferred income 
26 

            20
          
            17
          
Current income tax liability 
14 

            125
          
            35
          
Total current 
liabilities 

            1,688
          
            1,410
          
Total liabilities 

            8,392
          
            7,794
          
Total 
equity and liabilities 

            12,967
          
            11,620
          
* 
The change in Equity items stems from a change 
in accounting policies described in Note 2 d). 
The notes presented on pages 9 to 117 form an integral part of these consolidated financial statements

 
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
5 
Consolidated statement of changes in equity 
For the year ended 31 December 2022 
Attributable to owners of the Company 
In millions of EUR (“MEUR”) 
Note 
Share 
capital 
Share 
premium 
Reserves 
Retained 
earnings 
Total 
Non-
controllin
g interest 
Total 
Equity 
Non-
distribu-
table 
reserves 
Translatio
n reserve 
 
Fair value 
reserve 
Revalua-
tion value 
reserve 
Other 
capital 
reserves 
Hedging 
reserve 
Balance as at 1 January 2022 (A) 

            2,988
          
            8
          
            1
          
(54)

            -
          
            1,335
          
(3,814)
(321)

            899
          
            1,042
          
            2,784
          
            3,826
          
Effect of change in functional currency 

            260
          
            1
          
            -
          
            101
          
(3)

            -
          
(368)
(3)

            12
          
            -
          
            -
          
            -
          
Adjusted balance at the beginning of the period 

            3,248
          
            9
          
            1
          
            47
          
(3)

            1,335
          
(4,182)
(324)

            911
          
            1,042
          
            2,784
          
            3,826
          
Total comprehensive income for the year: 
Profit or loss (B) 

            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            416
          
            416
          
            285
          
            701
          
Other comprehensive income: 
Foreign currency translation differences for foreign operations 
14 

            -
          
            -
          
            -
          
            14
          
            -
          
            -
          
            -
          
            -
          
            -
          
            14
          
            5
          
            19
          
Fair value reserve included in other comprehensive income, 
net of tax 
14 

            -
          
            -
          
            -
          
            -
          
            3
          
            -
          
            -
          
            -
          
            -
          
            3
          
            2
          
            5
          
Effective portion of changes in fair value of cash-flow hedges, net 
of 
tax 
14 

            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            29
          
            -
          
            29
          
            75
          
            104
          
Total other comprehensive income (C) 

            -
          
            -
          
            -
          
            14
          
            3
          
            -
          
            -
          
            29
          
            -
          
            46
          
            82
          
            128
          
Total comprehensive income for the period 
(D) = (B + C)

            -
          
            -
          
            -
          
            14
          
            3
          
            -
          
            -
          
            29
          
            416
          
            462
          
            367
          
            829
          
Contributions by and distributions to owners: 
Dividends to equity holders 
21 

            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
(82)
(82)
Transfer to retained earnings 

            -
          
            -
          
            -
          
            -
          
            -
          
(42)

            -
          
            -
          
            42
          
            -
          
            -
          
            -
          
Total contributions by and distributions to owners
 
(E)

            -
          
            -
          
            -
          
            -
          
            -
          
(42)

            -
          
            -
          
            42
          
            -
          
(82)
(82)
Changes in ownership interests in subsidiaries that do not result in 
loss of control: 
Effect of acquisitions through business combinations 
6 

            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            2
          
            2
          
Total changes in ownership interests in subsidiaries 
(F)

            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            2
          
            2
          
Total transactions with owners 
(G) = (E + F)

            -
          
            -
          
            -
          
            -
          
            -
          
(42)

            -
          
            -
          
            42
          
            -
          
(80)
(80)
Balance at 31 December 2022 (H) = (A + D + G) 

            3,248
          
            9
          
            1
          
            61
          
            -
          
            1,293
          
(4,182)
(295)

            1,369
          
            1,504
          
            3,071
          
            4,575
          
The notes presented on pages 9 to 117 form an integral part of these consolidated financial statements.

 
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
6 
Consolidated statement of changes in equity 
For the year ended 31 December 2021 
Attributable to owners of the Company 
In millions of EUR (“MEUR”) 
Note 
Share 
capital 
Share 
premium 
Reserves 
Retained 
earnings 
Total 
Non-
controlling 
interest 
Total 
Equity 
Non-
distribu-
table 
reserves 
Translation 
reserve 
Revalua-
tion value 
reserve 
Other 
capital 
reserves 
Hedging 
reserve 
Balance as at 1 January 2021 (A) 

            2,988
          
            8
          
            1
          
(33)

            1,377
          
(3,814)
(102)

            644
          
            1,069
          
            3,012
          
            4,081
          
Total comprehensive income for the year: 
Profit or loss (B) 

            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            313
          
            313
          
            289
          
            602
          
Other comprehensive income: 
Foreign currency translation differences for foreign operations 
14 

            -
          
            -
          
            -
          
(72)

            -
          
            -
          
            -
          
            -
          
(72)
(135)
(207)
Foreign currency translation differences from presentation currency 
14 

            -
          
            -
          
            -
          
            58
          
            -
          
            -
          
            -
          
            -
          
            58
          
            147
          
            205
          
Effective portion of changes in fair value of cash-flow hedges, net 
of 
tax 
14 

            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
(219)

            -
          
(219)
(189)
(408)
Total other comprehensive income (C) 

            -
          
            -
          
            -
          
(14)

            -
          
            -
          
(219)

            -
          
(233)
(177)
(410)
Total comprehensive income for the period 
(D) = (B + C)

            -
          
            -
          
            -
          
(14)

            -
          
            -
          
(219)

            313
          
            80
          
            112
          
            192
          
Contributions by and distributions to owners: 
Dividends to equity holders 
21 

            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
            -
          
(100)
(100)
(340)
(440)
Transfer to retained earnings 

            -
          
            -
          
            -
          
            -
          
(42)

            -
          
            -
          
            42
          
            -
          
            -
          
            -
          
Total contributions by and distributions to owners
 
(E)

            -
          
            -
          
            -
          
            -
          
(42)

            -
          
            -
          
(58)
(100)
(340)
(440)
Changes in ownership interests in subsidiaries that do not result in 
loss of control: 
Effect of disposed entties 
6 

            -
          
            -
          
            -
          
(7)

            -
          
            -
          
            -
          
            -
          
(7)

            -
          
(7)
Total changes in ownership interests in subsidiaries 
(F)

            -
          
            -
          
            -
          
(7)

            -
          
            -
          
            -
          
            -
          
(7)

            -
          
(7)
Total transactions with owners 
(G) = (E + F)

            -
          
            -
          
            -
          
(7)
(42)

            -
          
            -
          
(58)
(107)
(340)
(447)
Balance at 31 December 2021 (H) = (A + D + G) 

            2,988
          
            8
          
            1
          
(54)

            1,335
          
(3,814)
(321)

            899
          
            1,042
          
            2,784
          
            3,826
          
The notes presented on pages 9 to 117 form an integral part of these consolidated financial statements.

Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
7 
Consolidated statement of cash flow 
For the year ended 31 December 2022 
In millions of EUR (“MEUR”) 
Note 
2022 
2021 
OPERATING ACTIVITIES 
Profit (loss) for the period 

            701
          

            602
          
Adjustments for: 
Income taxes 
14 

            253
          

            205
          
Depreciation and amortisation 
15, 16 

            463
          

            430
          
Dividend income 
13 
(1)
(2)
Impairment losses on property, plant and equipment and intangible assets 

            29
          
(2)
Impairment losses on financial assets 

            -
          

            3
          
Non-cash (gain) loss from commodity derivatives for trading with electricity 
and gas, net 

            1
          

            59
          
Loss on disposal of property, plant and equipment, investment 
property and 
intangible assets 
12 

            -
          

            5
          
Emission rights 
11 

            192
          

            129
          
Share of profit of equity accounted investees 

            -
          
(1)
Gain on disposal of subsidiaries, special purpose entities, joint ventures, 
associates and non-controlling interests 

            -
          

            1
          
(Profit) loss from financial instruments 
13 
(101)
(18)
Interest expense, net 
13 

            85
          

            91
          
Change in allowance for impairment to trade receivables and other assets, 
write-offs 
13 
(6)

            14
          
Change in provisions 

            -
          

            5
          
Other finance fees, net 
13 

            5
          

            5
          
Unrealized foreign exchange (gains) losses, net 
(12)
(44)
Operating profit before changes in working capital 

            1,609
          

            1,482
          
Change in trade receivables and other assets 
(342)
(144)
Change in inventories 
(133)
(6)
Change in trade payables and other liabilities 

            188
          

            5
          
Change in restricted cash 

            -
          

            1
          
Cash generated from (used in) operations 

            1,322
          

            1,338
          
Interest paid 
(74)
(120)
Income taxes paid 
(229)
(266)
Cash flows generated from (used in) operating activities 

            1,019
          

            952
          
INVESTING ACTIVITIES 
Received dividends 

            1
          

            2
          
Loans provided to the other entities 
(106)

            -
          
Repayment of loans provided to other entities 

            127
          

            -
          
Cession of receivable 

            4
          

            -
          
Proceeds (outflows) from sale (settlement) of financial instruments 
(37)
(58)
Acquisition of property, plant and equipment, investment 
property and intangible 
assets 
15, 16 
(165)
(151)
Purchase of emission rights 
11 
(193)
(112)
Proceeds from sale of property, plant and equipment, 
investment property and other 
intangible assets 

            6
          

            7
          
Acquisition of subsidiaries and special purpose entities, net of cash acquired 
6 
(2)
(18)
Net cash inflow from disposal of subsidiaries and special purpose entities 
6 

            -
          

            25
          
Interest received 

            5
          

            1
          
Cash flows from (used in) investing activities 
(360)
(304)

Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
8 
Consolidated statement of cash flow (continuing) 
For the year ended 31 December 2022 
In millions of EUR (“MEUR”) 
Note 
2022 
2021 
FINANCING ACTIVITIES 
Proceeds from borrowings received 
24 

            500
          

            105
          
Repayment of borrowings 
24 
(21)
(942)
Proceeds from bonds issued 
24 

            -
          

            1,000
          
Repayment of bonds issued 
24 

            -
          
(570)
Finance fees paid from repayment of borrowings and bond issue 

            -
          
(5)
Payment of lease liability 
30 
(12)
(14)
Loans provided to non-controlling shareholders as a prepayment for a dividend 

            -
          
(219)
Dividends paid 
21 
(82)
(219)
Cash flows from (used in) financing activities 

            385
          
(864)
Net increase (decrease) in cash and 
cash equivalents 

            1,044
          
(216)
Cash and cash equivalents at beginning of the period 

            501
          

            709
          
Effect of exchange rate fluctuations on cash held 

            3
          

            8
          
Cash and cash equivalents at end of the period 

            1,548
          

            501
          
The notes presented on pages 9 to 117 form an integral part of these consolidated financial statements. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
9 

            Notes to the consolidated financial statements 
1.
Background

          

            
                  
                        EP Infrastructure, a.s.
                      
 
(the “Parent Company” 
or the “Company” 
or “EPIF” or 
“infrastructure subholding”) 
is a 

                        joint-stock company
                      
, with 
its registered office 
at 

                        Pařížská 130/26, 110 00 Praha 1
                      
, 

                        Czech Republic
                      
. The 
Company was founded by Energetický a průmyslový holding, a.s. (“EPH”) on 6 
December 2013 as at that 
time 
a 
subsidiary 
that 
will 
hold/consolidate 
investments 
in 
entities 
belonging 
to 
the 
energy 
segment 
of 
Energetický a průmyslový holding, a.s. and its subsidiaries (the “EPH Group”).

                
The infrastructure 
subholding was 
established to 
separate the 
strategic infrastructure 
energy 
assets from 
other business activities of the EPH Group. 

                  The main activities of the EPIF Group are natural gas transmission, gas and power distribution and supply, 
                

                  gas storage and heat production and distribution.
                

                  The consolidated financial 
statements of the 
Company for the 
year ended 31 
December 2022 include 
the 
statements of 
the Parent 
Company and 
its subsidiaries 
and the 
Group’s 
interests in 
associates and 
joint-
ventures (together referred to 
as the “Group” or 
the “EPIF Group”). The 
Group entities are listed 
in Note 
33 – Group entities.

                
The shareholders of the Company as at 31 December 2022 were as 
follows: 
Interest in share capital 
Voting rights 
MEUR 
% 
% 
EPIF Investments a.s. 
2,241 
69 
69 
CEI Investments S.à r.l. 
1,007 
31 
31 
Total 
3,248 
100 
100 
The shareholders of the Company as at 31 December 2021 were as follows: 
Interest in share capital 
Voting rights 
MEUR 
% 
% 
EPIF Investments a.s. 
2,062 
69 
69 
CEI Investments S.à r.l. 
926 
31 
31 
Total 
2,988 
100 
100 
The movement of the 
share capital is a 
result of a change 
in the functional currency 
of the Parent Company 
as at 1 January 2022. For more details see Note 3(a). 

                  The members of the Board of Directors of the Company as at 31 December 
2022 were: 
●
Daniel Křetínský (Chairman of the Board of Directors) 
●
Stéphane Louis Brimont (Vice-chairman of the Board of Directors) 
●
Gary Wheatley Mazzotti (Vice-chairman of the Board of Directors) 
●
William David George Price (Member of the Board of Directors) 
●
Marek Spurný (Member of the Board of Directors) 
●
Pavel Horský (Member of the Board of Directors) 
●
Milan Jalový (Member of the Board of Directors)

                
Changes and amendments entered in the Commercial Register in the last financial year: 
On 24 February 2022, Jiří Zrůst was removed from the 
Commercial Register as the Vice-Chairman of the 
Board 
of 
Directors, 
with 
the 
date 
of 
termination 
of 
office 
on 
28 
November 
2021 
and 
Stéphane 
Louis 
Brimont was entered as the Vice-Chairman of the Board of Directors. 

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
10 

            Information relating 
to the 
establishment of 
the parent 
company 

                  Energetický a průmyslový holding, a.s.
                
and its shareholder structure was disclosed in the 
2010 consolidated financial statements of 

                  Energetický a 
                

                  průmyslový holding, a.s
                
. published on 20 May 2011. 
As the Company was established 
by its parent Energetický 
a průmyslový holding, a.s. under 
the common 
control 
principle (refer 
to Note 
3 – 
Significant Accounting 
Policies), the 
Company opted 
to 
present the 
contributed entities 
as if 
sold by 
EPH to 
the Company 
on the 
date when 
the respective 
entities were 
acquired 
by the EPH Group or were contributed to the EPH Group. 
Under Czech law 
the non-cash contribution 
to the share 
capital must be 
valued by an 
independent valuation 
specialist. The difference between the value contributed to the statutory share capital as determined by the 
independent valuation specialist and net book value (after potential 
fair value adjustments recorded during 
the Purchase Price Allocation process 
when acquired by EPH) 
of the contributed entity as at 
the date when 
acquired 
or 
contributed 
by 
the 
parent 
company 
was 
presented 
as 
a 
pricing 
difference 
in 
Other 
capital 
reserves in Equity, rather than a goodwill from acquisition under IFRS 3.

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
11 

            
                  2. 
Basis of preparation 

                        (a) 
Statement of compliance 
The 
consolidated 
financial 
statements 
have 
been 
prepared 
in 
accordance 
with 
international 
accounting 
standards 
(International Accounting 
Standards – 
IAS and 
International Financial 
Reporting 
Standards – 
IFRS) issued by International Accounting Standards Board (IASB), 
as adopted by the European Union.

                      
 

                        The consolidated financial statements were approved by the board of 
directors on 24 March 2023.

                      
(b) 
Basis of measurement 

                        The consolidated 
financial statements 
have been 
prepared on 
a going-concern basis 
using the historical 
cost 
method, except for the following material items in the statement of financial position, which are 
measured 
at fair value:

                      
●
gas transmission pipelines and gas distribution pipelines at revalued amounts;
●
derivative financial instruments;
●
financial instruments at fair value through profit or loss;
●
financial instruments at fair value through other comprehensive income.
Non-current assets and 
disposal groups held 
for sale 
are stated 
at the 
lower of 
their carrying 
amount and 
fair value less costs to sell. 
The accounting policies 
described in the 
following paragraphs 
have been consistently 
applied by the 
Group 
entities
and between accounting periods. 

                        (c) 
Functional and presentation currency 
From 
1 
January 
2022, 
the 
Parent 
Company’s 
functional 
currency 
is 
Euro 
(„EUR“). 
The 
consolidated 
financial statements 
for the 
year ended 
31 December 
2022 are 
prepared in 
Euro (presented in 
millions), 
which is also the Group’s presentation currency. 
Until 31 December 
2021, the Parent 
Company’s functional 
currency was Czech crown 
(„CZK“) and the 
consolidated 
financial 
statements 
for 
the 
year 
ended 
31 
December 
2021 
were 
prepared 
in 
CZK 
and 
presented in 
EUR, which 
was the 
Group’s presentation currency. For 
details on 
the change 
in the 
functional 
currency of the Parent Company from 1 January 2022, refer to Note 
3(a).

                      
 

                        (d) 
Use of estimates and judgements 
The 
preparation 
of 
financial 
statements 
in 
accordance 
with 
International 
Financial 
Reporting 
Standards 
requires the use 
of certain 
critical accounting 
estimates that affect 
the reported amounts 
of assets, liabilities, 
income 
and 
expenses. 
It 
also 
requires management 
to 
exercise 
judgment 
in 
the 
process 
of 
applying the 
Company’s 
accounting policies. 
The resulting 
accounting estimates 
will, by 
definition, seldom 
equal the 
related actual results. 
Estimates 
and 
assumptions 
are 
reviewed 
on 
an 
ongoing 
basis. 
Revisions 
to 
accounting 
estimates 
are 
recognised in the 
period in which 
the estimate is 
revised if the 
revision affects only 
that period, or 
in the 
period of the revision and future periods if the revision affects both current and 
future periods. 

                              i. 
Assumptions and estimation uncertainties 
Information about 
assumptions and 
estimation uncertainties 
that have 
a significant 
risk of 
resulting in 
a 
material adjustment in the following years is included in the following 
notes: 
●
Notes 
6, 
15 and 
16 – 
Accounting for 
business combinations, 
recognition of 
goodwill/negative 
goodwill, impairment testing of property, plant and equipment and goodwill;
●
Note 7 – Revenues;
●
Note 15 – Measurement of gas transmission and gas distribution pipelines 
at revalued amounts; 
●
Note 25 – Recognition and measurement of provisions;
●
Notes 24, 27 and 31 – Valuation of loans and borrowings and financial instruments;

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
12 

            
                  
                        Measurement of fair values 
A number of 
the Group’s 
accounting policies and 
disclosures require the 
measurement of fair 
values, for 
both financial and non-financial assets and liabilities. 
The 
Group 
has 
an 
established 
control 
framework 
with 
respect 
to 
the 
measurement 
of 
fair 
values. 
This 
includes 
a 
valuation 
team 
that 
has 
overall 
responsibility 
for 
overseeing 
all 
significant 
fair 
value 
measurements, including Level 3 fair values. 
The valuation 
team regularly 
reviews significant 
unobservable inputs 
and valuation 
adjustments. If 
third 
party 
information, 
such 
as 
broker 
quotes 
or 
pricing 
services, 
is 
used 
to 
measure 
fair 
values, 
then 
the 
valuation team 
assesses the 
evidence obtained 
from the 
third parties 
to support 
the conclusion 
that such 
valuations meet 
the 
requirements of 
IFRS, including 
the level 
in 
the fair 
value hierarchy 
in 
which such 
valuation should be classified. 
When measuring the 
fair value of 
an asset 
or a 
liability, 
the Group 
uses market observable 
data as far 
as 
possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used 
in the valuation techniques as follows: 
Level 1: quoted prices (unadjusted) in active markets for identical assets 
or liabilities. 
Level 2: inputs other than quoted prices included in Level 1 that are observable 
on the market for the asset 
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). 
Level 3: inputs for the 
asset or liability that are 
not based on observable 
market data (unobservable inputs). 
If the inputs used to measure the fair 
value of an asset or a liability might be 
categorised in different level 
of the fair value 
hierarchy, then 
the fair value measurement is 
categorised in its entirety in 
the same level 
of the fair value hierarchy as the lowest level input that is significant 
to the entire measurement. 
The Group recognises transfers between 
levels of the fair value 
hierarchy at the end of 
the reporting period 
during which the change has occurred. 
ii. 
Judgements 
Information about judgements 
made in the application 
of accounting policies 
that have the most 
significant 
effects 
on 
the 
amounts 
recognised 
in 
the 
consolidated 
financial 
statements 
is 
included 
in 
the 
following 
notes: 
●
Notes 
6 
and 
16 
– 
accounting 
for 
business 
combinations, 
recognition 
of 
goodwill/negative 
goodwill, impairment testing of goodwill,
●
Note 7 – judgements relating to recognition of revenues from customers;
●
Note 15 
– assessment 
that IFRIC 12 
and IFRS 
16 is 
not applicable 
to the 
gas transmission 
and 
gas 
distribution 
pipelines, 
power 
distribution 
networks, 
gas 
storage 
facilities 
and 
heat 
infra 
facilities and distribution network;
●
Note 6 and 23 – information relating to assessment of the control over 
the subsidiaries;
●
Note 
25 
– 
measurement 
of 
defined 
benefit 
obligations, 
recognition 
and 
measurement 
of 
provisions;
iii. Recent matters 
At the end of 2019, 
information on the 
coronavirus in China was 
published for the first 
time. In early 2020, 
the virus 
spread to 
almost entire 
world and 
also affect 
the region 
where the 
Group operates. 
The Parent 
Company’s 
management considers this 
event to 
be an event 
that requires 
disclosure in 
the notes 
to 2022 
financial statements. Despite 
the constantly changing situation, 
as at the date 
of publication of the 
financial 
statements, 
the 
Parent 
Company’s 
management 
did 
not 
notice 
a 
significant 
impact 
on 
the 
Group’s 
operations. The 
Parent Company’s management 
continues to 
closely monitor 
the situation 
and, if 
necessary, 
it will take all reasonable steps to eliminate negative impacts of this situation 
on the Group. 
In the context 
of the ongoing 
military invasion in 
the territory of 
Ukraine and associated 
sanctions targeting 
the 
Russian 
Federation, 
the 
Parent 
Company 
has 
identified 
risks 
and 
adopted 
appropriate 
measures 
to 
mitigate 
impacts 
on 
Group’s 
business 
activities. 
Based 
on 
the 
information 
available 
and 
current 
developments, 
the 
Parent 
Company’s 
management 
has 
been 
continuously 
analysing 
the 
situation 
and 

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
13 

            
                  
                        assessing its 
direct impact 
on the 
Group. The 
Parent Company’s 
management has 
assessed the 
potential 
impacts of 
this situation 
on Group’s 
operations and 
concluded that 
they do 
not currently 
have a 
material 
impact 
on 
2022 
financial 
statements 
or 
going 
concern 
assumption 
in 
2023. 
However, 
further 
negative 
developments 
as 
regards 
this 
situation 
cannot 
be 
ruled 
out, 
which 
could 
subsequently 
have 
a 
material 
negative 
impact 
on 
the 
Company, 
its 
businesses, 
financial 
condition, 
results, 
cash 
flows 
and 
overall 
outlook.

                      

                
 

                  (e) 
Recently issued accounting standards 
i.
Newly adopted Standards, Amendments to standards and Interpretations 
effective for the year 
ended 31 December 2022 that have been applied in preparing the Group’s financial statements 
The following 
paragraphs provide 
a summary 
of the key 
requirements of 
IFRSs that 
are effective for 
annual 
periods beginning on or after 1 January 2022 and that have been applied by 
the Group for the first time. 
Amendments to IFRS 
3 – 
Updating a Reference 
to the 
Conceptual Framework; IAS 
16 – 
Proceeds 
before 
Intended 
Use, 
IAS 
37 
– 
Onerous 
Contracts 
– 
Cost 
of 
Fulfilling 
a 
Contract 
and 
Annual 
Improvements 2018-2020 
(Effective for 
annual reporting 
periods beginning 
on or 
after 1 
January 
2022) 
Amendments to IFRS 3 update 
references to the Conceptual Framework, 
amendments to IAS 16 prohibit 
a 
company from deducting 
from the cost 
of property amounts 
received from selling 
items produced 
while the 
company is preparing the 
asset for its 
intended use and recognizes 
such sales and related 
cost in profit 
or 
loss and amendments 
to IAS 37 
specify which costs 
a company includes 
when assessing whether 
a contract 
will be loss-making. Costs of fulfilling the contract comprise incremental costs 
of fulfilling the contract as 
well as an allocation of other costs that relate directly to fulfilling contracts. 
Annual Improvements 
affect the 
following standards: 
IFRS 1 
First-time Adoption 
of International 
Financial 
Reporting Standards (simplified 
the application of 
IFRS 1 by a 
subsidiary that becomes 
a first-time adopter 
after 
its 
parent 
in 
relation 
to 
the 
measurement 
of 
cumulative translation 
differences), 
IFRS 
9 
Financial 
Instruments (clarified the fees a company includes 
when assessing whether the terms of a new 
or modified 
financial 
liability 
are 
substantially 
different 
from 
the 
terms 
of 
the 
original 
financial 
liability), 
IAS 
41 
Agriculture (removed 
a requirement to 
exclude cash flow 
from taxation when 
measuring fair value) 
and the 
Illustrative Examples accompanying IFRS 16 Leases. 
The amendments do not have any material impact on the Group’s financial statements. 
ii.
Standards not yet effective 
At the date of authorisation 
of these consolidated financial statements, 
the following significant Standards 
and Amendments 
to Standards 
have been 
issued but 
are not 
yet effective for 
the period 
ended 31 
December 
2022 and have not been adopted by the Group: 
IFRS 17 
Insurance Contracts and 
Amendment to IFRS 
17 (Effective for 
annual reporting 
periods 
beginning on or after 1 
January 2023), and IFRS 4 – 
Extension of the Temporary 
Exemption from 
Applying IFRS 9 (Effective for annual reporting periods beginning on or after 
1 January 2021) 
Insurance contracts 
combine features 
of both 
a financial 
instrument and 
a service 
contract. In 
addition, 
many insurance contracts 
generate cash flows 
with substantial variability over 
a long period. To 
provide 
useful information about these features, IFRS 17 
combines current measurement of the future 
cash flows 
with 
the 
recognition 
of 
profit 
over 
the 
period 
that 
services 
are 
provided 
under 
the 
contract; 
presents 
insurance service results separately from insurance 
finance income or expenses; and 
requires an entity to 
make an 
accounting policy 
choice of 
whether to 
recognise all 
insurance finance 
income or 
expenses in 
profit or loss or to recognise some of that income or expenses in other comprehensive 
income. 
Because 
of 
the 
nature 
of 
the 
Group’s 
main 
business 
the 
Standard 
will 
have 
no 
impact 
on 
the 
Group’s 
financial statements. 

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
14 

            
                  Amendments to 
IAS 
1 
– 
Classification 
of 
Liabilities as 
Current 
or 
Non-current 
and 
Non-current 
Liabilities with Covenants (Effective for 
annual reporting periods beginning 
on or after 
1 January 
2024 (not adopted by EU yet)) 
The amendment Classification 
of Liabilities as 
Current or Non-current clarifies 
how to classify 
debt and 
other 
liabilities 
as 
current 
or 
non-current 
and 
how 
to 
determine 
whether 
in 
the 
statement 
of 
financial 
position, debt and other liabilities with an uncertain 
settlement date should be classified as current (due 
or 
potentially 
due 
to 
be 
settled 
within 
one 
year) 
or 
non-current. 
The 
amendment 
includes 
clarifying 
the 
classification requirements for debt a 
company might settle by converting 
it into equity. 
The amendment 
Non-current Liabilities with 
Covenants improves the 
information an entity 
provides when its 
right to defer 
settlement of a liability for at least twelve months is subject to compliance 
with covenants. 
The Group is currently reviewing possible impact of the amendments 
to its financial statements. 
Amendments to IAS 1 
and IFRS Practice Statement 2 
– Disclosure Initiative – 
Accounting Policies 
(Effective for annual reporting periods beginning on or after 1 January 2023) 
The amendments introduce „material accounting policies“ and 
requires the entity to disclose 
information 
about 
material 
instead 
of 
significant accounting 
policies and 
clarify that 
accounting 
policy information 
may be 
material because 
of its 
nature even 
if the 
related amounts 
are immaterial. 
The amendments 
also 
specify how the material accounting policies may be identified. 
The Group is currently reviewing possible impact of the amendments 
to its financial statements. 
Amendments to IAS 8 – Definition of Accounting Estimates (Effective for annual reporting periods 
beginning on or after 1 January 2023) 
The amendments introduce the new definition of 
accounting estimate and requires the entities to develop 
accounting estimates 
to be 
measured in 
a way 
that involves 
measurement uncertainty. The 
amendment also 
specifies that change in accounting 
estimate that results from 
new information is not the 
correction of an 
error and 
may affect 
only the 
current period’s 
profit or 
loss or 
the profit 
or loss 
of both 
the current 
and 
future periods. 
The Group is currently reviewing possible impact of the amendments 
to its financial statements. 
Amendments 
to 
IAS 
12 
– 
Deferred 
tax 
Related 
to 
Assets 
and 
Liabilities 
arising 
from 
a 
Single 
Transaction (Effective for annual reporting periods beginning on or after 1 January 2023) 
The 
amendment 
modifies 
an 
exemption 
from 
the 
initial 
recognition 
of 
deferred 
tax 
asset 
and 
liability 
arising from 
a single 
transaction that 
is not 
a business 
combination and 
does not 
impact accounting 
and 
taxable profit. 
For transactions 
in which 
equal deductible 
and taxable 
temporary differences 
arise, the 
entity 
is required to recognize deferred tax asset and liability and initial recognition 
exemption does not apply. 
The Group is currently reviewing possible impact of the amendments 
to its financial statements. 
Amendments 
to 
IFRS 
17 
Insurance 
contracts 
– 
Initial 
Application 
of 
IFRS 
17 
and 
IFRS 
9 
– 
Comparative Information (Effective for 
annual reporting periods 
beginning on or 
after 1 January 
2023) 
The amendment is a transition option relating to 
comparative information about financial assets presented 
on 
initial 
application 
of 
IFRS 
17 
to 
help 
entities 
to 
avoid 
temporary 
accounting 
mismatches 
between 
financial assets and insurance contract liabilities. 
Because of the nature 
of the Group’s main business it is 
expected that the Standard 
will have no impact on 
the Group’s financial statements. 
Because 
of 
the 
nature 
of 
the 
Group’s 
main 
business 
the 
Standard 
will 
have 
no 
impact 
on 
the 
Group’s 
financial statements. 
Amendments to IFRS 16 
– Lease Liability in 
a Sale and Leaseback 
(Effective for annual reporting 
periods beginning on or after 1 January 2024 (not adopted by EU yet)) 
The amendment 
clarifies how a 
seller-lessee subsequently measures 
sale and 
leaseback transactions that 
satisfy the 
requirements in 
IFRS 15 
to 
be accounted 
as 
a sale. 
The seller-lessee 
subsequently measures 

                

          

 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
15 

            
                  lease liabilities arising from a leaseback in a way that it does not recognise any amount of 
the gain or loss 
that relates to the right of use it retains. 
The Group is currently reviewing possible impact of the amendments 
to its financial statements. 
The Group 
has not 
early adopted 
any IFRS 
standards where 
adoption is 
not mandatory 
at the 
reporting 
date. 
Where 
transition 
provisions 
in 
adopted 
IFRS 
give 
an 
entity 
the 
choice 
of 
whether 
to 
apply 
new 
standards prospectively or retrospectively, the Group elects to apply the Standards prospectively from the 
date of transition.

                

          

            
                  3. 
Significant Accounting Policies 
The EPIF Group has consistently 
applied the accounting policies set out 
below to all periods presented in 
these consolidated financial statements, except as described in note 2(e) 
and 3(a). 
Certain comparative 
amounts in 
the consolidated 
statement of 
financial position 
have been 
regrouped or 
reclassified, where necessary, on a basis consistent with 
the current period. 

                        (a) 
Change in accounting policies and terminology 

                              Change in functional currency of the Parent Company
: 
As of 1 January 2022, 
the functional currency of 
the Parent Company changed 
from Czech crown to 
Euro. 
Following an assessment 
of primary and 
secondary criteria of 
IAS 21 by 
the EPIF management 
it has been 
concluded that Euro represents the primary 
economic environment in which the Company operates 
more 
faithfully. The change was mainly triggered by Euro becoming a prevailing currency 
in which funds from 
financing 
activities 
have 
been 
obtained 
and 
income 
from 
the 
principal 
activities 
(dividend 
revenues, 
revenues from services rendered) has been 
generated and management does not expects 
for that to change 
in the future. As at the 
date of change of the functional currency, 
all items of assets, equity and liabilities 
of 
the 
Parent 
Company were 
translated 
from 
Czech 
crown 
to 
Euro 
using 
exchange 
rate 
on 
the 
date 
of 
change (24.86 CZK/EUR). 
For non-monetary items, such 
as the share capital, the 
translated amounts have 
become new historical cost. 
As a result of 
the change in the 
functional currency of the 
Parent Company, the 
Group has adopted Euro 
as the currency in which consolidated financial statements 
are prepared. Operations of subsidiaries whose 
functional currency 
is Euro 
are no longer 
considered as 
foreign operations. 
Conversely, subsidiaries whose 
functional currency 
is Czech 
crown have 
become foreign 
operations. The 
change of 
the functional 
currency 
of 
the 
Parent 
Company 
and 
the 
change 
in 
the 
assessment 
of 
foreign 
operations 
has 
been 
recorded 
prospectively. 
The presentation currency of 
the Group has 
not been affected 
and remains to 
be Euro and 
thus comparative information have not been restated. 
The 
change 
of 
the 
functional 
currency 
of 
the 
Parent 
Company, 
has 
had 
the 
following 
effect 
on 
the 
consolidated opening balances as at 1 January 2022: 
In millions of EUR 
Balance as 
at 1 January 
2022 
Effect of 
change in 
functional 
currency 
Adjusted 
balance as at 
1 January 
2022 
Share capital 
2,988 
260 
3,248 
Share premium 
8 
1 
9 
Non-distributable reserves 
1 
- 
1 
Translation reserve 
(54) 
101 
47 
Fair value reserve 
1,335 
(3) 
1,332 
Other capital reserves 
(3,814) 
(368) 
(4,182) 
Hedging reserve 
(321) 
(3) 
(324) 
Retained earnings 
899 
12 
911 
Equity attributable to owners of the 
Company 
1,042 
- 
1,042 
Non-controlling interest 
2,784 
- 
2,784 
Total Equity 
3,826 
- 
3,826

                            

                              Changes in structure of the statement of comprehensive income 

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
16 

            
                  
                        
                              In 2022, the Group 
changed its structure 
of the statement 
of comprehensive income. 
The major changes 
are 
as follows: 
●
new 
expense 
line 
item 
“Services” 
presented 
within 
“Profit 
(loss) 
from 
operations” 
includes 
expenses previously included within “Repairs and maintenance” as well as expenses on services 
previously included in “Purchases and consumables” and in “Other operating 
expenses”;
●
line 
item 
“Depreciation, 
amortization 
and 
impairment” 
includes 
impairment 
of 
non-financial 
assets previously presented in “Other operating expenses”;
●
line item “Other operating income (expense), net” aggregates former 
“Other operating income”, 
“Other operating expenses” 
(except for the 
expenses reclassified into 
“Services”) and “Taxes and 
charges”;
●
former line item “Profit/(loss) from financial instruments” is classified within “Finance income” 
or “Finance expenses” based on the total result being either profit or loss;
●
the changes had no impact on calculation 
of Profit (loss) from operations 
and Profit (loss) for the 
period. 
The abovementioned changes 
have been 
made to 
reflect more precisely 
the activities 
of the 
Group´s and 
capture 
its 
financial 
performance 
in 
a 
manner 
that 
appears 
to 
be 
the 
most 
useful 
to 
users 
of 
financial 
statements. 
As a result of the change, the Group restated comparative information for 2021. For details of 
the restatement, refer to Appendix 1 – Restated Consolidated statement 
of comprehensive income.

                            

                      

                        (b) 
Basis of consolidation 

                              i. Subsidiaries 
Subsidiaries are entities controlled 
by the Parent 
Company. Control 
exists when the 
Parent Company has 
power over the investee, exposure to variable returns from its involvement with the investee and is able to 
use its power over investee to affect the amount of its returns. The existence and effect 
of potential voting 
rights 
that are 
substantive is 
considered when 
assessing whether 
the 
Group controls 
another entity. 
The 
consolidated financial 
statements include 
the Group’s interests 
in other 
entities based 
on the 
Group’s ability 
to control such entities regardless of whether control is actually exercised or 
not. The financial statements 
of subsidiaries are included in the consolidated financial statements from the date that control commences 
until the date that control ceases.

                            
 

                              
                                    
                                          ii. Equity accounted investees 
Associates are enterprises in which the Group has significant influence, but not control, over financial and 
operating policies. 
Investments in 
associates are 
accounted for 
under the 
equity method 
and are 
initially 
recognised at cost (goodwill 
relating to an associate 
or a joint venture 
is included in the 
carrying amount of 
the investment). The consolidated financial statements include the Group’s 
share of the total profit or loss 
and other comprehensive 
income of associates 
from the date 
that the significant 
influence commences until 
the date 
that the 
significant influence 
ceases. When 
the Group’s share 
of losses 
exceeds the 
carrying amount 
of the associate, the carrying amount is reduced 
to nil and the recognition of further losses 
is discontinued, 
except to the extent that 
the Group has incurred obligations in 
respect of or has made 
payments on behalf 
of the associate.

                                        

                                  

                            

                              
                                    iii. Accounting for business combinations 
The Group acquired its subsidiaries in two ways: 
●
As 
a 
business 
combination 
transaction 
within 
the 
scope 
of 
IFRS 
3 
which 
requires 
initial 
measurement of assets and liabilities at fair value. 
●
As a business combination under 
common control which is 
a business combination in which 
all 
of the combining entities 
or businesses are 
ultimately controlled by 
the same party 
or parties both 
before and after the 
business combination, and 
that control is 
not transitory. Such acquisitions are 
excluded from 
the 
scope of 
IFRS 3. 
The assets 
and liabilities 
acquired were 
recognised 
at the 
carrying 
amounts 
recognised 
previously 
in 
the 
Group’s 
controlling shareholder’s 
consolidated 
financial statements (i.e. value at cost as at the date of 
acquisition less accumulated depreciation 
and/or 
potential impairment). 
No 
new 
goodwill 
or 
negative 
goodwill was 
recognised 
on these 
acquisitions.

                                  

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
17 

            
                  
                        
                              
                                    Acquisition method and purchase price allocation 
As at the acquisition 
date the Group 
measures identifiable assets 
acquired and the 
liabilities assumed at 
fair 
value, with exception of deferred tax assets and liabilities, assets or liabilities related to employee benefits 
and assets/disposal groups classified as held for sale under IFRS 5, which are recognized and measured in 
accordance with respective standards. 
Purchase price or any form of consideration transferred in 
a business combination is also measured at fair 
value. 
Contingent 
consideration 
is 
measured 
at 
fair 
value 
at 
the 
date 
of 
acquisition 
and 
subsequently 
remeasured at fair value at each reporting date, with changes in fair value 
recognized in profit or loss. 
Acquisition related costs are recognized in profit or loss as incurred.

                                  

                            

                              iv. 
Non-controlling interests 
Acquisitions 
of 
non-controlling 
interest 
are 
accounted 
for 
as 
transactions 
with 
equity 
holders 
in 
their 
capacity as equity 
holders and therefore 
no goodwill and 
no gain or 
loss is recognised 
as a result 
of such 
transactions. 
Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets 
at the acquisition date. 
Changes in 
the Group’s 
interest in 
subsidiary that 
do not 
result in 
a loss 
of control 
are accounted 
for as 
equity transaction.

                            
v. Transactions eliminated on consolidation 
Intra-group balances 
and transactions, 
and any 
unrealised income 
and expenses 
arising from 
intra-group 
transactions, 
are 
eliminated 
in 
preparing 
the 
consolidated 
financial 
statements. 
Unrealised 
gains 
arising 
from transactions with 
associates and jointly 
controlled entities are 
eliminated against the 
investment to the 
extent 
of 
the 
Group’s 
interest 
in 
the 
enterprise. 
Unrealised 
losses 
are 
eliminated 
in 
the 
same 
way 
as 
unrealised gains, but only to the extent that there is no evidence of 
impairment. 
vi. Unification of accounting policies 
The accounting policies 
and procedures 
applied by the 
consolidated companies 
in their financial 
statements 
were unified in the consolidation and agree with the accounting policies 
applied by the Parent Company. 
vii. Pricing differences 
The 
Group 
accounted 
for 
pricing 
differences 
which 
arose 
from 
the 
acquisition 
of 
subsidiaries 
from 
Energetický a průmyslový holding, a.s. or subsidiaries contributed to the share 
capital of the Company by 
Energetický 
a 
průmyslový 
holding, 
a.s. 
As 
these 
acquired 
or 
contributed 
entities 
were 
under 
common 
control of Energetický a průmyslový holding, a.s., 
they were therefore excluded from 
the scope of IFRS 3, 
which defines 
recognition of 
goodwill raised 
from business 
combination as 
the excess 
of the 
cost of 
an 
acquisition over the fair value of the 
Group’s share of the 
net identifiable assets, liabilities and contingent 
liabilities of the acquired 
subsidiary. Acquirees under common control 
are treated under the 
net book value 
presented in the consolidated 
financial statements of Energetický a 
průmyslový holding, a.s. (i.e. 
including 
historical goodwill less potential 
impairment) as at the 
date these entities were 
acquired by Energetický a 
průmyslový holding, 
a.s. (acquisition 
date). The 
difference between 
the cost 
of acquisition 
and carrying 
values of 
net assets 
of the 
acquiree and 
original goodwill 
carried forward 
as at 
the acquisition 
date were 
recorded to 
consolidated equity 
as pricing 
differences. Pricing 
differences are 
presented in 
Other capital 
reserves 
in 
Equity. 
“Note 6 
– 
Acquisitions 
and 
disposals 
of 
subsidiaries, 
joint-ventures 
and 
associates” 
summarises the effects of all common control transactions in both periods. 
viii. Disposal of subsidiaries and equity accounted investees 
Gain or 
loss from 
the sale 
of investments 
in subsidiaries 
and equity 
accounted investees is 
recognised in 
profit or loss when the significant risks and rewards of ownership have been 
transferred to the buyer. 
If the assets and 
liabilities are sold by 
selling the interest 
in a subsidiary or 
an associate the profit 
or loss on 
sale is recognised in total under Gain 
(loss) on disposal of subsidiaries, joint-ventures 
and associates in the 
statement of comprehensive income. 

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
18 

            
                  
                        If the 
Group disposes 
of a 
subsidiary that 
was acquired 
under a 
common control 
transaction and 
pricing 
differences 
were recognised 
on the 
acquisition (refer 
to 
Note 3(b) 
vii – 
Pricing differences), 
the pricing 
differences are 
reclassified from other 
capital reserves to 
retained earnings at 
the date 
of the subsidiary’s 
disposal.

                      

                        (c) 
Foreign currency 
i.
Foreign currency transactions 
Items included in the financial statements of each of 
the Group’s entities are measured 
using the currency 
of the 
primary economic environment 
in which 
the entity 
operates (the 
functional currency). Company’s 
functional currency is 
Euro. Transactions 
in foreign 
currencies are 
translated to 
the respective 
functional 
currencies of Group entities at the foreign 
exchange rate at the transaction date. The 
consolidated financial 
statements are prepared and presented in Euro, which is the Group’s functional and presentation currency. 
Monetary 
assets 
and 
liabilities 
denominated 
in 
foreign 
currencies 
are 
retranslated 
to 
the 
respective 
functional 
currencies 
of 
Group 
entities 
at 
the 
exchange 
rate 
at 
the 
reporting 
date; 
where 
the 
functional 
currency is Czech crowns, at the exchange rate of the Czech National Bank. 
Non-monetary assets and liabilities 
denominated in foreign currencies, which 
are stated at historical 
cost, 
are translated to 
the respective functional 
currencies of Group 
entities at the 
foreign exchange rate 
at the 
date of 
the transaction. 
Non-monetary assets 
and liabilities 
denominated in 
foreign currencies 
that are 
stated 
at fair value are translated to the respective functional currencies at the foreign exchange rates at the dates 
the fair values are determined. 
Foreign exchange differences 
arising on retranslation 
are recognised in 
profit or loss, 
except for differences 
arising on the retranslation of FVOCI equity instruments or 
qualifying cash flow hedges to the extent that 
the hedge is 
effective, in 
which case foreign 
exchange differences arising 
on retranslation are 
recognised 
in other comprehensive income. 
A summary of the main foreign exchange rates applicable for the 
reporting period is presented in Note 31 
– Risk management policies and disclosures. 
ii.
Translation to presentation currency 
These 
consolidated 
financial 
statements 
are 
prepared 
in 
Euro, 
which 
is 
also 
the 
Group’s 
presentation 
currency. 
The assets 
and liabilities 
of foreign 
operations, including 
goodwill and 
fair value 
adjustments 
arising on 
consolidation, are 
translated into 
Euro at 
foreign exchange 
rates at 
the reporting 
date. The 
income 
and expenses of foreign operations 
are translated into Euro using 
average exchange rate for the 
period. For 
significant transactions the exact foreign exchange rate is used. 
Foreign 
exchange 
differences 
arising 
on 
translation 
of 
foreign 
operations 
are 
recognised 
in 
other 
comprehensive income and 
presented in the translation 
reserve in equity. However, if the foreign 
operation 
is a non-wholly owned subsidiary, 
then the relevant proportion of the translation difference is allocated to 
non-controlling interests. At disposal, 
relevant part of translation reserve 
is recycled to financial income 
or 
expense in the statement of comprehensive income.

                      

                        
                              
                                    (d) 
Non-derivative financial assets 
i.
Classification 
On initial recognition, a financial asset 
is classified as measured at amortised cost, 
fair value through other 
comprehensive 
income 
– 
debt 
instrument, 
fair 
value 
through 
other 
comprehensive 
income 
– 
equity 
instrument or fair value 
through profit or loss. 
The classification of 
financial asset is generally 
based on the 
business model in which a financial asset is managed and its contractual cash 
flow characteristics. 
A financial asset is measured at 
amortized cost
 
if both of the following conditions are met: 
●
the financial 
asset is 
held within 
a business 
model whose 
objective is 
to hold 
financial assets 
in 
order to collect contractual cash flows; and 
●
the contractual terms of the financial asset 
give rise on specified dates to cash 
flows that are solely 
payments of principal and interest on the principal amount outstanding 
(“SPPI test”). 

                                  

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
19 

            
                  
                        
                              
                                    Principal is the fair 
value of the financial 
asset at initial recognition. 
Interest consists of consideration for 
the 
time 
value 
of 
money, 
for 
the 
credit 
risk 
associated 
with 
the 
principal 
amount 
outstanding 
during 
a 
particular period of time and for 
other basic lending risks and costs, as 
well as a profit margin. 
Loans and 
receivables which meet SPPI 
test and business model test 
are normally classified by the 
Group as financial 
asset at amortised cost. 
A 
debt instruments
 
are measured 
at fair value 
through other comprehensive income
 
if both of 
the following 
conditions are met: 
●
the financial asset is held 
within a business model whose objective is 
achieved by both collection 
contractual cash flows and selling financial assets; and 
●
the contractual terms of the financial asset 
give rise on specified dates to cash 
flows that are solely 
payments of principal and interest on the principal amount outstanding 
(“SPPI test”). 
The 
Group 
may 
make 
an 
irrevocable 
election 
at 
initial 
recognition 
for 
particular 
investments 
in 
equity 
instruments
 
that would otherwise be measured at fair value through 
profit or loss (as described below) and 
are not 
held for 
trading to 
present subsequent 
changes in 
fair value 
in other 
comprehensive income. The 
Group has equity 
securities classified as 
financial assets 
at fair value 
through other comprehensive income
. 
All 
investments 
in 
equity 
instruments 
and 
contracts 
on 
those 
instruments 
are 
measured 
at 
fair 
value. 
However, in limited circumstances, 
cost may be an 
appropriate estimate of 
fair value. That may 
be the case 
if insufficient recent 
information is available to 
measure fair value, or 
if there is a 
wide range of 
possible 
fair value measurements 
and cost represent 
the best estimate 
of fair value 
within that 
range. The 
Group uses 
all information about the performance and operations of the investee that 
becomes available after the date 
of initial recognition. To 
the extent that any 
such relevant factors exist, 
they may indicate that 
cost might 
not be representative of fair value. In such cases, the Group uses fair value. Cost is never the best estimate 
of fair value for investments in quoted instruments. 
A financial asset is measured at 
fair value through profit or loss 
unless it is measured at amortised 
cost or 
at fair value through other comprehensive income. The key 
type of financial assets measured at fair 
value 
through profit or loss by the Group are derivatives. 
The Group 
may, 
at initial 
recognition, irrevocably designate 
a financial 
asset, that 
would be 
measured at 
amortized 
cost 
or 
at 
FVOCI, 
as 
measured 
at 
fair 
value 
through 
profit 
or 
loss 
if 
doing 
so 
eliminates 
or 
significantly reduces a 
measurement or recognition 
inconsistency (sometimes 
referred to as an 
“accounting 
mismatch”) that 
would otherwise 
arise from 
measuring assets 
or 
liabilities or 
recognising the 
gains and 
losses on them on different bases. 
ii.
Recognition 
Financial assets 
are recognised 
on the 
date the 
Group becomes 
party to 
the contractual 
provision of 
the 
instrument. 
iii.
Measurement 
Upon initial 
recognition, financial 
assets are 
measured at 
fair value 
plus, in 
the case 
of a 
financial instrument 
not 
at 
fair 
value 
through 
profit 
or 
loss, 
transaction 
costs 
directly 
attributable 
to 
the 
acquisition 
of 
the 
financial 
instrument. 
Attributable 
transaction 
costs 
relating 
to 
financial 
assets 
measured 
at 
fair 
value 
through profit 
or loss 
are recognised 
in 
profit or 
loss as 
incurred. For 
the methods 
used to 
estimate fair 
value, refer to Note 4 – Determination of fair values. 
Financial assets at FVtPL are 
subsequently measured at fair 
value, with net gains and 
losses, including any 
dividend income, recognised in profit or loss. 
Debt 
instruments 
at 
FVOCI 
are 
subsequently 
measured 
at 
fair 
value. 
Interest 
income 
calculated 
using 
effective interest rate 
method, foreign exchange 
gains and losses 
and impairment are 
recognised in profit 
or loss. Other gains and 
losses are recognised in other 
comprehensive income and reclassified to 
profit or 
loss upon derecognition of the asset. 
Equity instruments at FVOCI are 
subsequently measured at fair 
value. Dividends are recognised in 
profit 
or loss. Other gains and losses are recognised in other comprehensive income and are never reclassified 
to 
profit or loss. 

                                  

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
20 

            
                  
                        
                              
                                    Financial assets at amortized cost are subsequently 
measured at amortized cost using effective interest 
rate 
method. Effective interest rate is the rate that exactly discounts estimated future cash payments or receipts 
through the expected life of the financial asset or liability to the gross carrying amount of a financial asset 
or 
to 
the 
amortized 
cost 
of 
a 
financial 
liability. 
Interest 
income, 
foreign 
exchange 
gains 
and 
losses, 
impairment and any gain or loss on derecognition are recognised 
in profit or loss. 

                                          iv. De-recognition 
A financial 
asset is 
derecognised when 
the contractual 
rights to 
the cash 
flows from 
the asset 
expire, or 
when the rights to receive the contractual cash flows are transferred in a transaction in which substantially 
all 
the 
risks 
and 
rewards 
of 
ownership 
of 
the 
financial 
asset 
are 
transferred. 
Any 
interest 
in 
transferred 
financial assets that is created or retained by the Group is recognised as a separate 
asset or liability.

                                        

                                          v. Offsetting of financial assets and liabilities 
Financial assets 
and liabilities 
are offset and 
the net 
amount is 
reported in 
the statement 
of financial 
position 
when the 
Group has a 
legally enforceable right 
to offset 
the recognised 
amounts and 
the transactions are 
intended to be settled on a net basis.

                                        

                                  

                            

                              (e) 
Non-derivative financial liabilities 
The 
Group 
has 
the 
following 
non-derivative 
financial 
liabilities: 
loans 
and 
borrowings, 
debt 
securities 
issued, bank overdrafts, 
and trade and 
other payables. Such 
financial liabilities are 
initially recognised at 
the settlement 
date at 
fair value 
plus any 
directly attributable 
transaction costs 
except for 
financial liabilities 
at fair 
value through 
profit and 
loss, where 
transaction costs 
are recognised 
in profit 
or loss 
as incurred. 
Financial liabilities are 
subsequently measured at 
amortised cost using 
the effective interest rate, 
except for 
financial liabilities at fair value through profit or loss. For the methods used to estimate fair value, refer to 
Note 4 – Determination of fair values. 

                                    The Group derecognises 
a financial liability when 
its contractual obligations are 
discharged, cancelled or 
expire.

                                  

                            

                              
                                    
                                          
                                                
                                                      (f) 
Derivative financial instruments 
The Group 
holds derivative 
financial instruments 
to hedge 
its foreign 
currency, interest rate 
and commodity 
risk exposures. 
Derivatives are recognised initially at fair 
value, with attributable transaction costs recognised in profit 
or 
loss 
as 
incurred. 
Subsequent 
to 
initial 
recognition, 
derivatives 
are 
measured 
at 
fair 
value, 
and 
changes 
therein are accounted for as described below. 
Trading derivatives 
When 
a 
derivative 
financial 
instrument 
is 
held 
for 
trading 
i.e. 
is 
not 
designated 
in 
a 
qualifying 
hedge 
relationship, all changes in its fair value are recognised immediately in profit 
or loss. 
Separable embedded derivatives 
Financial and non-financial 
contracts that are 
financial liabilities within 
the scope of 
IFRS 9 (where 
they 
have not already been measured 
at fair value through profit 
or loss) are assessed to 
determine whether they 
contain any embedded derivatives. 
Embedded derivatives 
are separated 
from the 
host contract 
and accounted 
for separately 
if the 
economic 
characteristics and risks of 
the host contract and 
the embedded derivative are 
not closely related, a 
separate 
instrument with the same terms as the embedded derivative would meet the 
definition of a derivative, and 
the combined instrument is 
not measured at fair value 
through profit or loss. 
In the case of hybrid 
contracts 
where host contracts are financial assets the whole contract is assessed 
with respect to SPPI criteria. 
Changes in the fair value of separable embedded derivatives are recognised 
immediately in profit or loss.

                                                    

                                                      Cash flow hedges and fair value hedges

                                                            The 
financial 
derivatives, 
which 
do 
not 
meet 
the 
criteria 
for 
hedge 
accounting 
as 
stated 
by 
IFRS 
9 
are 
classified as 
for trading 
and related 
profit and 
loss from 
changes in 
fair value 
is recognised 
in profit 
and 
loss.

                                                          

                                                    

                                              

                                        

                                  

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
21 

            
                  
                        
                              
                                    
                                          
                                                
                                                      Hedging instruments 
which consist 
of derivatives 
associated with 
a currency 
risk are 
classified either 
as 
cash-flow hedges or fair value hedges. 
From the inception of the hedge, the Group maintains a formal documentation 
of the hedging relationship 
and 
the 
Group’s 
risk 
management 
objective 
and 
strategy 
for 
undertaking 
the 
hedge. 
The 
Group 
also 
periodically assesses 
the hedging 
instrument’s effectiveness in offsetting 
exposure to 
changes in 
the hedged 
item’s fair value or cash flows attributable to the hedged risk. 
In the case 
of a cash 
flow hedge, the 
portion of 
the gain or 
loss on the 
hedging instrument 
that is determined 
to be 
an effective 
hedge is 
recognised in 
other comprehensive 
income and 
the ineffective 
portion of 
the 
gain or loss 
on the hedging instrument is 
recognised in profit or 
loss. If the hedging 
instrument no longer 
meets 
the 
criteria 
for 
hedge 
accounting, 
expires 
or 
is 
sold, 
terminated 
or 
exercised, 
then 
the 
hedge 
accounting is discontinued 
prospectively. If the forecast 
transaction is no 
longer expected to 
occur, then the 
balance in equity 
is reclassified to profit 
or loss. In case 
the future transaction is 
still expected to occur 
then 
the balance remains 
in equity and 
is recycled to 
profit or loss 
when the hedged transaction 
impacts profit 
or loss. 
In the case of a fair value hedge, 
the hedged item is remeasured for 
changes in fair value attributable 
to the 
hedged risk during the period 
of the hedging relationship. 
Any resulting adjustment to 
the carrying amount 
of the hedged item related to the hedged risk is recognised in profit or loss, except for the financial asset – 
equity instrument at FVOCI, for which the gain or loss is recognised in other comprehensive 
income. 
In the case of a fair value hedge, the gain or loss from re-measuring the hedging 
instrument at fair value is 
recognised in profit or loss.

                                                    
 
Transactions with emission rights and energy 
According to IFRS 
9, certain contracts 
for emission rights 
and energy 
fall into the 
scope of the 
standard. 
Purchase and sales contracts entered 
into by the Group provide for physical 
delivery of quantities intended 
for consumption or sale as 
part of its ordinary business. 
Such contracts are thus 
excluded from the scope of 
IFRS 9. 
In particular, forward 
purchases and 
sales settled 
by delivery 
of the 
underlying are 
considered to 
fall outside 
the scope of application of IFRS 9, when the contract 
concerned is considered to have been entered 
into as 
a part of the Group’s 
normal business activity. 
This is demonstrated to be the 
case when all the following 
conditions are fulfilled: 
●
delivery of the underlying takes place under such contracts;
●
the 
volumes 
purchased 
or 
sold 
under 
the 
contracts 
correspond 
to 
the 
Group’s 
operating 
requirements; 
●
the Group 
does not 
have a 
practice of 
settling similar 
contracts net 
in cash 
or another 
financial 
instrument or by exchanging financial instrument;
●
the Group 
does not 
have a 
practice of 
taking delivery 
of the 
underlying and 
selling it 
within a 
short period 
after delivery 
for the 
purpose of 
generating a 
profit from 
short-term fluctuation 
in 
price or dealer’s margin.
Contracts, 
which 
does 
not 
meet 
above 
mentioned 
conditions, 
fall 
under 
the 
scope 
of 
IFRS 
9 
and 
are 
accounted for in line with the requirements of IFRS 9. 
For each 
contract where own-use 
exemption applies, the 
Group determines whether 
the contract 
leads to 
physical settlement in accordance with 
Group’s expected purchase, sale or usage requirements. The 
Group 
considers all 
relevant factors 
including the 
quantities delivered 
under the 
contract and 
the corresponding 
requirements of the 
entity, 
the delivery locations, 
the duration between 
contract signing and 
delivery and 
the existing procedure followed by the entity with respect to contracts of 
this kind. 
Contracts 
which 
fall 
under the 
scope 
of 
IFRS 
9 
are 
carried 
at 
fair 
value 
with 
changes in 
the 
fair 
value 
recognised in profit or loss.

                                              

                                        

                                  

                            
 

                              
                                    (g) 
Cash and cash equivalents 
Cash 
and 
cash 
equivalents 
comprise 
cash 
balances 
on 
hand 
and 
in 
banks, 
and 
short-term 
highly 
liquid 
investments with original maturities of three months or less.

                                  

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
22 

            
                  
                        (h) Inventories 
Inventories are measured at the lower of cost and net realisable 
value. Net realisable value is the estimated 
selling price in the ordinary course of 
business, less the estimated cost of completion 
and selling expenses. 
Purchased inventory and inventory in 
transit are initially stated at 
cost, which includes the purchase 
price 
and other 
directly attributable 
expenses incurred 
in 
acquiring the 
inventories and 
bringing them 
to 
their 
current location 
and condition. 
Inventories of 
a similar 
nature are 
valued using 
the weighted 
average method 
except for the energy production segment, where the first-in, first-out principle is 
used. 
Internally manufactured inventory and work in progress are initially stated 
at production costs. Production 
costs include direct costs 
(direct material, direct 
labour and other direct 
costs) and part of 
overhead directly 
attributable to inventory production (production overhead). The valuation is written 
down to net realisable 
value if the net realisable value is lower than production costs.

                      

                        (i) 
Impairment 

                              i. Non-financial assets 
The 
carrying 
amounts 
of 
the 
Group’s 
assets, 
other 
than 
inventories 
(refer 
to 
accounting 
policy 
(h) 
– 
Inventories) 
and deferred 
tax assets 
(refer to 
accounting policy 
(o) – 
Income taxes) 
are reviewed 
at each 
reporting date 
to determine 
whether there 
is an 
objective evidence 
of impairment. 
If any 
such indication 
exists, 
the 
asset’s 
recoverable 
amount 
is 
estimated. 
For 
goodwill 
and 
intangible 
assets 
that 
have 
an 
indefinite useful life or that are not yet available for use, the recoverable amount is estimated at least each 
year at the same time. 
The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its fair value less costs 
to sell 
and value in 
use. In assessing 
value in use, 
the estimated future 
cash flows are 
discounted to their 
present 
value 
using 
a 
pre-tax 
discount 
rate 
that 
reflects 
current 
market 
assessment of 
the 
time 
value 
of 
money and the risks specific to the asset or CGU. 
For the purpose 
of impairment testing, 
assets that cannot 
be tested individually 
are grouped together 
into 
the smallest group of 
assets that generates 
cash inflows from continuing 
use that are largely independent 
of 
the cash 
inflows of 
other assets 
or groups 
of assets 
(the “cash-generating 
unit”, or 
“CGU”). For 
the purposes 
of goodwill 
impairment testing, 
CGUs to 
which goodwill 
has been 
allocated are 
aggregated so 
that the 
level 
at which impairment 
is tested reflects 
the lowest level 
at which goodwill 
is monitored for 
internal reporting 
purposes 
and 
is 
not 
larger 
than 
operating 
segment 
before 
aggregation. 
Goodwill 
acquired 
in 
a 
business 
combination 
is 
allocated 
to 
groups 
of 
CGUs 
that 
are 
expected 
to 
benefit 
from 
the 
synergies 
of 
the 
combination. 
An 
impairment 
loss is 
recognised whenever 
the 
carrying 
amount of 
an 
asset or 
its 
cash 
generating unit 
exceeds its recoverable amount. Impairment losses are recognised 
in profit or loss. 
Impairment losses recognised in respect 
of CGUs are allocated first 
to reduce the carrying amount 
of any 
goodwill allocated to the CGU or CGUs, and 
then to reduce the carrying amounts of 
the other assets in the 
CGU (or group of CGUs) on a 
pro rata
 
basis. 
An impairment 
loss in 
respect of 
goodwill is 
not reversed. 
In respect 
of other 
assets, impairment 
losses 
recognised in 
prior periods 
are assessed 
at each 
reporting date 
for any 
indications that 
the loss 
has decreased 
or 
no 
longer 
exists. 
An 
impairment 
loss 
is 
reversed 
if 
there 
has 
been a 
change 
in 
the 
estimates used 
to 
determine 
the 
recoverable 
amount. 
An 
impairment 
loss 
is 
reversed 
only 
to 
the 
extent 
that 
the 
asset’s 
carrying amount does 
not exceed the 
carrying amount 
that would have 
been determined, 
net of depreciation 
or amortisation, if no impairment loss had been recognised. 
Goodwill 
that 
forms 
part 
of 
the 
carrying 
amount 
of 
an 
investment 
in 
an 
associate 
is 
not 
recognised 
separately, 
and 
therefore 
is 
not 
tested 
for 
impairment 
separately. 
Instead, 
the 
entire 
amount 
of 
the 
investment in an associate 
is tested for impairment 
as a single 
asset when there is 
objective evidence that 
the investment in an associate may be impaired.

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
23 

            
                  
                        
                              ii. Financial assets (including trade and other receivables and contract 
assets) 
The 
Group 
measures 
loss 
allowances 
using 
expected 
credit 
loss 
(“ECL”) 
model 
for 
financial 
assets 
at 
amortized cost, debt instruments at FVOCI and contract assets. Loss allowances are measured on 
either of 
the following bases: 
• 
12-month ECLs: ECLs 
that result from 
possible default events within 
the 12 months 
after the reporting 
date; 
• 
lifetime 
ECLs: 
ECLs 
that 
result 
from 
all 
possible 
default 
events 
over 
the 
expected 
life 
of 
a 
financial 
instrument. 
The Group measures loss allowances at an amount 
equal to lifetime ECLs except for those financial assets 
for 
which 
credit 
risk 
has 
not 
increased 
significantly 
since 
initial 
recognition. 
For 
trade 
receivables 
and 
contract assets, the Group has elected to measure loss allowances at an amount 
equal to lifetime ECLs. 
The ECL model is based on the principle of expected credit losses. For the purposes of designing 
the ECL 
model, 
the 
portfolio 
of 
financial 
assets 
is 
split 
into 
segments. 
Financial 
assets 
within 
each 
segment 
are 
allocated to three stages (Stage I – 
III) or to a group of financial 
assets that are impaired at the date 
of the 
first recognition purchased 
or originated credit-impaired 
financial assets (“POCI”). 
At the date 
of the initial 
recognition, the financial asset is 
included in Stage I 
or POCI. Subsequent to initial 
recognition, financial 
asset is allocated to 
Stage II if there 
was a significant increase 
in credit risk since 
initial recognition or to 
Stage III of the financial asset has been credit impaired. 
The Group assumes that the credit risk on a financial asset has 
increased significantly if: 
(a) ) a 
financial asset or its 
significant portion is overdue 
for more than 30 
days (if a 
financial asset or its 
significant portion is overdue for more than 30 days and less than 90 days, and the delay does not indicate 
an increase in counterparty credit 
risk, the individual approach is used 
and the financial asset is 
classified 
in Stage I); or 
(b) the Group 
negotiates with the debtor 
in a financial difficulty 
about debt’s 
restructuring (at the request 
of the debtor or the Company); or 
(c) the probability of default (PD) of the debtor increases by 20%; 
or 
(d) other material events occur which require individual assessment (e.g., development 
of external ratings 
of sovereign credit risk). 
At 
each 
reporting 
date, 
the 
Group 
assesses 
whether 
financial 
assets 
carried 
at 
amortised 
cost 
and 
investments to debt instrument are 
credit impaired. A financial asset 
is credit impaired when one 
or more 
events that 
have a 
detrimental impact 
on the 
estimated future 
cash flows 
of the 
financial asset 
have occurred. 
The Group considers financial asset to be credit-impaired if: 
(a) a financial asset or its significant part is overdue for more than 90 
days; or 
(b) legal action has 
been taken in relation to 
the debtor which outcome or the 
actual process may have an 
impact on the debtor’s ability to repay the debt; or 
(c) 
insolvency 
proceedings 
or 
similar 
proceedings 
under 
the 
foreign 
legislation 
have 
been 
initiated 
in 
respect of the debtor, which may lead to a declaration of bankruptcy 
and the application for the opening of 
this proceeding has not 
been refused or rejected 
or the proceedings have 
not been discontinued within 
30 
days of initiation ((b) and (c) are considered as “Default event”); or 
(d) 
the 
probability 
of 
default 
of 
the 
borrower 
increases 
by 
100% 
compared 
to 
the 
previous 
rating 
(not 
relevant condition in ECL model for intercorporate loans and receivables); 
or 
(e) other material 
events occur which 
require individual assessment 
(e.g. development of 
external ratings 
of sovereign credit risk). 
For 
the 
purposes 
of 
ECL 
calculation, 
the 
Group 
uses 
components 
needed 
for 
the 
calculation, 
namely 
probability 
of 
default 
(“PD”), 
loss 
given 
default 
(“LGD”) 
and 
exposure 
at 
default 
(“EAD”). 
Forward-
looking information means any macroeconomic factor projected for future, which has a significant impact 
on 
the 
development 
of 
credit 
losses 
ECLs 
are 
present values 
of 
probability-weighted estimate 
of 
credit 

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
24 

            
                  
                        
                              losses. The 
Group considers 
mainly expected 
growth of 
gross domestic 
product, reference 
interest rates, 
stock exchange indices or unemployment rates. 
Presentation of loss allowances 
Loss 
allowances 
for 
financial 
assets 
measured 
at 
amortised 
cost 
are 
deducted 
from 
the 
gross 
carrying 
amount of 
the assets. 
For debt 
securities at 
FVOCI, the 
loss allowance 
is 
recognised in 
OCI, instead 
of 
reducing the carrying amount of the asset.

                            

                              iii. Equity accounted investees 
An impairment loss in respect of an equity accounted investee is measured by comparing the recoverable 
amount of the investment with its carrying 
amount. An impairment loss is recognised 
in profit or loss and 
is reversed 
if there 
has been 
a favourable 
change in 
the estimates 
used to 
determine the 
recoverable amount.

                            

                      

                        (j) 
Property, plant and equipment 
i.
Owned assets – cost model 
Items of 
property, 
plant and 
equipment are 
stated at 
cost less 
accumulated depreciation 
(see below) 
and 
impairment losses 
(refer to 
accounting policy 
(i) – 
Impairment). Opening 
balances are 
presented at 
net book 
values, which include adjustments from revaluation within the Purchase Price Allocation process (refer to 
accounting policy (b) iii – Basis of consolidation – Accounting 
for business combinations). 
Cost includes 
expenditures that 
are directly 
attributable to 
the acquisition 
of 
the asset. 
The cost 
of self-
constructed assets includes 
the cost 
of materials and 
direct labour, 
any other costs 
directly attributable to 
bringing the 
asset to 
a 
working 
condition for 
its intended 
use, 
and 
capitalised borrowing 
costs (refer 
to 
accounting 
policy 
(p) 
– 
Finance 
income 
and 
costs). 
The 
cost 
also 
includes 
costs 
of 
dismantling 
and 
removing the items and restoring the site on which they are located. 
When parts of an item 
of property, 
plant and equipment have different useful 
lives, those components are 
accounted for as separate items (major components) of property, plant and equipment. 
ii.
Owned assets – revaluation model 
Gas transmission pipelines 
of eustream, a.s. 
and gas distribution 
pipelines in SPP 
– distribúcia, a.s. 
are held 
under revaluation model (IAS 
16). The assets are 
carried at revalued 
amount, which is fair 
value at the date 
of 
revaluation 
less 
accumulated 
subsequent 
depreciation 
and 
impairment. 
Revaluation 
is 
made 
with 
sufficient regularity, 
at least 
every 5 
years. Revaluation 
is always 
applied to 
the entire 
class of 
property, 
plant and equipment the revalued asset belongs to. 
Initial revaluation as at the 
date of initial application of 
revaluation model, the difference between carrying 
amount and revalued amount 
is recognized as revaluation 
surplus directly in equity 
if revalued amount is 
higher than 
carrying amount. 
Difference is 
recognized in 
profit or 
loss if 
revalued amount 
is lower 
than 
carrying amount. 
On subsequent revaluation, 
increase in revalued 
amount is recognized 
in other 
comprehensive income or 
in profit or loss to the extend it reverses 
a revaluation decrease of the same asset previously recognized in 
profit 
or 
loss. 
The decrease 
in 
revalued amount 
primarily decreases 
amount accumulated 
as revaluation 
surplus in 
equity, 
eventual remaining 
part of 
decrease in revalued 
amount is 
recognized in 
profit or 
loss. 
Accumulated depreciation is eliminated against gross carrying amount 
of the asset. 
Deferred 
tax 
asset 
or 
liability 
is 
recognized 
in 
equity 
or 
in 
profit 
or 
loss 
in 
the 
same 
manner 
as 
the 
revaluation itself. 
When asset under revaluation model is 
depreciated, revaluation surplus is released to retained earnings 
as 
the asset is 
depreciated. When 
the revalued asset 
is derecognized or 
sold, the revaluation 
surplus as a 
whole 
is transferred to retained earnings. 
iii.
Free-of-charge received property 
Several 
items 
of 
gas 
and 
electricity 
equipment 
(typically 
connection 
terminals) 
were 
obtained 
“free 
of 
charge” from developers and from 
local authorities (this does not represent a 
grant, because in such cases 
the local 
authorities act 
in the 
role of 
a developer). 
This equipment 
was recorded 
as property, 
plant, and 

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
25 

            
                  
                        equipment 
at 
the 
costs 
incurred 
by 
the 
developers 
and 
local 
authorities 
with 
a 
corresponding 
amount 
recorded as 
contract liability (before 
1 January 
2018 as 
deferred income) 
as receipt 
of the 
free of 
charge 
property is related 
to obligation to 
connect the customers 
to the grid. 
These costs approximate 
the fair value 
of the obtained assets. This contract liability is released in 
the income statement on a straight-line basis in 
the amount of depreciation charges of non-current tangible assets acquired free of 
charge.

                              iv. Subsequent costs 
Subsequent costs are 
capitalised only if 
it is probable 
that the future 
economic benefits embodied 
in an item 
of property, 
plant and 
equipment will 
flow to 
the Group 
and its 
cost can 
be measured 
reliably. 
All other 
expenditures, 
including 
the 
costs 
of 
the 
day-to-day 
servicing 
of 
property, 
plant 
and 
equipment, 
are 
recognised in profit or loss as incurred.

                            

                              v. Depreciation 
Depreciation is recognised in profit or loss on a straight-line basis over the 
estimated useful lives of items 
of property, plant and equipment. Land 
is not depreciated. Leased 
assets are depreciated 
over the shorter of 
the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by 
the end of the lease term. 
The estimated useful lives are as follows: 
●
Power plant buildings and structures 
50 – 100 years 
●
Buildings and structures 
20 – 50 years 
●
Gas transmission and distribution pipelines 
30 – 70 years 
●
Machinery, electric generators, gas producers, turbines and drums 
20 – 30 years 
●
Heat and electricity distribution networks 
10 – 30 years 
●
Machinery and equipment 
4 – 20 years 
●
Fixtures, fittings and other 
3 – 20 years 
Depreciation methods and useful lives, as 
well as residual values, are reassessed annually 
at the reporting 
date. For companies acquired under IFRS 3 for which a purchase price allocation was prepared, the useful 
lives are reassessed based on the purchase price allocation process.

                            

                      

                        
                              (k) 
Intangible assets 

                                    
                                          i. Goodwill and intangible assets acquired in a business combination 
Goodwill represents the excess of 
the consideration transferred, amount of any 
non-controlling interest in 
the acquired entity 
and acquisition-date 
fair value of 
any previous equity 
interest in 
the acquired entity 
over 
the fair value of 
the net identifiable assets of 
the acquired subsidiary/associate/joint-venture at the date 
of 
acquisition. 
Goodwill 
on 
acquisitions 
of 
subsidiaries 
is 
included 
under 
intangible 
assets. 
Goodwill 
on 
acquisitions of 
associates/joint ventures 
is included 
in the 
carrying amount 
of investments 
in associates/joint 
ventures. 
If the Group’s share in 
the fair value of 
identifiable assets and 
liabilities of a 
subsidiary or equity 
accounted 
investees as 
at the 
acquisition date exceeds 
the acquisition cost, 
the Group 
reconsiders identification and 
measurement of 
identifiable assets 
and liabilities, 
and the 
acquisition cost. 
Any excess 
arising on 
the re-
measurement (negative goodwill) is recognised in profit and loss account 
in the period of acquisition. 
Upon acquisition of non-controlling interests (while maintaining control), 
no goodwill is recognised. 
Subsequent to initial 
recognition, goodwill is 
measured at cost 
less accumulated impairment 
losses (refer 
to accounting policy (i) – Impairment) and is tested annually for 
impairment. 
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity 
sold. 
Intangible assets acquired in 
a business combination are 
recorded at fair value on 
the acquisition date if 
the 
intangible 
asset 
is 
separable 
or 
arises 
from 
contractual 
or 
other 
legal 
rights. 
Intangible 
assets 
with 
an 
indefinite useful 
life are 
not subject 
to amortisation 
and are 
recorded at 
cost less 
any impairment 
losses 
(refer to accounting 
policy (i) – 
Impairment). Intangible 
assets with a definite 
useful life are 
amortised over 

                                        

                                  

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
26 

            
                  
                        
                              
                                    
                                          their useful lives and 
are recorded at cost 
less accumulated amortisation 
(see below) and impairment 
losses 
(refer to accounting policy (i) – Impairment).

                                        

                                  

                                    ii. Research and development 
Expenditure 
on 
research 
activities, 
undertaken 
with 
the 
prospect 
of 
gaining 
new 
scientific 
or 
technical 
knowledge and understanding, is recognised in profit or loss as incurred. 
Development 
activities 
involve 
a 
plan 
or 
design 
for 
the 
production 
of 
new 
or 
substantially 
improved 
products and processes. 
Development expenditure 
is capitalised only 
if development 
costs can 
be measured 
reliably, 
the 
product 
or 
process 
is 
technically 
and 
commercially 
feasible, 
future 
economic 
benefits 
are 
probable, and the Group intends to and has 
sufficient resources to complete development and to 
use or sell 
the asset. 
In 2022 and 
2021, expenditures 
incurred by 
the Group 
did not meet 
these recognition 
criteria. Development 
expenditure has thus been recognised in profit or loss.

                                  
 

                                    iii. Emission rights 
Recognition and measurement 
Emission 
rights 
issued 
by 
a 
government 
are 
initially 
recognised 
at 
fair 
values. Where 
an 
active 
market 
exists, fair value is based on the market price. The fair value for allocated emission 
rights is determined as 
the price at the date of allocation. Emission rights that are purchased 
are initially recognised at cost. 
Subsequently, emission rights are accounted for under the cost method under intangible assets. 
The Group’s accounting 
policy is 
to use 
the first-in, 
first-out principle 
(“FIFO”) for 
emission rights 
disposal 
(consumption or sale). 

                                          
                                                Impairment of emission rights 
At 
each 
reporting 
date, 
the 
Group 
assesses 
whether there 
is 
any 
indication that 
emission 
rights 
may 
be 
impaired. 
Where an impairment indicator 
exists, the Group reviews 
the recoverable amounts of 
the cash generating 
unit, to which 
the emission rights 
were allocated, to 
determine whether such amounts 
continue to exceed 
the assets’ 
carrying values. 
In case 
the carrying 
value of 
a cash 
generating unit 
is greater 
than its 
recoverable 
value, impairment exists. 
Any identified emission rights impairment 
is recognised directly as a debit 
to a profit or loss account and 
a 
credit to a valuation adjustment.

                                              

                                        
 
Recognition of grants 
A grant 
is initially recognised 
as deferred income 
and recognised in 
profit on a 
systematic basis over 
the 
compliance 
period, 
which 
is 
the 
relevant 
calendar 
year, 
regardless 
of 
whether 
the 
allowance 
received 
continues to 
be held 
by the 
entity. The pattern 
for the 
systematic recognition 
of the 
deferred income 
in profit 
is assessed 
based on 
estimated pollutants emitted 
in the 
current month, taking 
into account the 
estimated 
coverage 
of 
the 
estimated total 
annually 
emitted pollutants 
by 
allocated emission 
rights. 
The 
release 
of 
deferred income 
to a 
profit and 
loss account is 
performed on a 
quarterly basis; any 
subsequent update to 
the 
estimate 
of 
total 
annual 
pollutants 
is 
taken 
into 
account 
during 
the 
following 
monthly 
or 
quarterly 
assessment. Any disposals of 
certificates or changes in 
their carrying amount 
do not affect 
the manner in 
which grant income is recognised. 
Recognition, measurement of provision 
A 
provision 
is 
recognised 
regularly 
during 
the 
year 
based 
on 
the 
estimated 
number 
of 
tonnes 
of 
CO2 
emitted. 
It is measured at the best estimate 
of the expenditure required to settle the present obligation at 
the end of 
the reporting period. 
It means that 
the provision is 
measured based on the 
current carrying amount of 
the 
certificates on 
hand if 
sufficient 
certificates are 
owned to 
settle the 
current obligation, 
by using 
a 
FIFO 
method. The 
group companies 
identify (in 
each provision 
measurement period) 
which of 
the certificates 
are “marked for settling” the provision and this allocation is consistently 
applied. 

                                  

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
27 

            
                  
                        
                              
                                    Otherwise, if a 
shortfall of 
emission rights 
on hand 
as compared 
to the 
estimated need 
exists at the 
reporting 
date, 
then 
the 
provision 
for 
the 
shortfall 
is 
recorded based 
on 
the 
current 
market 
value 
of 
the 
emission 
certificates at the end of the reporting period.

                                  
iv. Software and other intangible assets 
Software and other intangible assets acquired by the 
Group that have definite useful lives are stated 
at cost 
less 
accumulated 
amortisation 
(see 
below) 
and 
impairment 
losses 
(refer 
to 
accounting 
policy 
(i) 
– 
Impairment). 
Intangible assets 
that have 
an indefinite 
useful life 
are not 
amortised and 
are instead 
tested annually 
for 
impairment. Their 
useful life 
is reviewed 
at each 
period-end to 
assess whether 
events and 
circumstances 
continue to support an indefinite useful life. 

                                    v. Amortisation 
Amortisation 
is 
recognised 
in 
profit 
or 
loss 
on 
a 
straight-line 
basis 
over 
the 
estimated 
useful 
lives 
of 
intangible assets other 
than goodwill, from 
the date the asset 
is available for use. 
The estimated useful 
lives 
are as follows:
●
Software 
2 – 7 
years
●
Customer relationship and other contracts 
2 – 20 years
●
Other intangible assets 
2 – 20 years
Amortisation methods, 
useful lives 
and residual 
values are 
reviewed at 
each financial 
year-end and adjusted 
if appropriate.

                                  

                            

                      

                        (l) 
Provisions 
A 
provision 
is 
recognised 
in 
the 
statement 
of 
financial 
position 
when 
the 
Group 
has 
a 
present 
legal 
or 
constructive obligation as a result of a past event, 
when it is probable that an outflow of economic 
benefits 
will be required to settle the obligation and when a reliable estimate of 
the amount can be made. 
Provisions 
are 
recognised 
at 
the 
expected 
settlement 
amount. 
Long-term 
obligations 
are 
reported 
as 
liabilities at 
the present 
value of 
their expected 
settlement amounts, 
if the 
effect of 
discount is 
material, 
using as a discount 
rate the pre-tax rate 
that reflects current market 
assessments of the time 
value of money 
and the risks specific to the liability. The periodic unwinding of the discount is recognised in profit or loss 
in finance costs. 
The effects of 
changes in interest rates, 
inflation rates and other 
factors are recognised in 
profit or loss in 
operating income or 
expenses. Changes in 
estimates of provisions 
can arise 
in particular from 
deviations 
from 
originally 
estimated 
costs, 
from 
changes 
in 
the 
settlement 
date 
or 
in 
the 
scope 
of 
the 
relevant 
obligation. 
Changes 
in 
estimates 
are 
generally 
recognised 
in 
profit 
or 
loss 
at 
the 
date 
of 
the 
change 
in 
estimate (see below). 

                              i. Employee benefits 
Long-term employee benefits
Liability relating to long-term employee benefits and service 
awards excluding pension plans is defined as 
an amount 
of the 
future payments, 
to 
which employees 
will be 
entitled in 
return for 
their service 
in the 
current 
and 
prior 
periods. 
Future 
liability 
which 
is 
calculated 
using 
the 
projected 
unit 
credit 
method 
is 
discounted to its 
present value. The 
discount rate used is 
based on yields 
of high-quality corporate bonds 
as at 
the end 
of the 
reporting period, 
which maturity approximately 
corresponds with the 
maturity of 
the 
future obligation. The revaluation of 
the net liability from long-term 
employee benefits and service awards 
(including actuarial gains and losses) is recognised in full immediately 
in other comprehensive income. 
Contributions for pension insurance resulting from Collective agreement are expensed 
when incurred. 
Pension plans 
In accordance 
with IAS 
19, the 
projected unit 
credit method 
is the 
only permitted 
actuarial method. 
The 
benchmark (target 
value) applied 
to 
measure defined 
benefit 
pension obligations 
is 
the 
present value 
of 
vested pension 
rights of active 
and former 
employees and 
beneficiaries (present 
value of 
the defined 
benefit 

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
28 

            
                  
                        
                              obligation). In general it 
is assumed that each 
partial benefit of the 
pension commitment is earned evenly 
from commencement of service until the respective due date. 
If specific plan assets 
are established to cover 
the pension payments, 
these plan assets can 
be netted against 
the pension obligations and 
only the net liability 
is shown. The valuation 
of existing plan 
assets is based on 
the fair value at the balance sheet date in accordance with IAS 19. 
Assets used to 
cover pension obligations 
that do not 
fully meet the 
requirement of plan 
assets have to 
be 
carried as assets 
on the balance sheet. 
Any netting off 
against the liability to 
be covered will not 
apply in 
this respect. 
The 
Group 
recognises 
all 
actuarial 
gains 
and 
losses 
arising 
from 
benefit 
plans 
immediately 
in 
other 
comprehensive income and all expenses related to the defined benefit plan 
in profit or loss. 
The 
Group 
recognises 
gains 
and 
losses 
on 
the 
curtailment 
or 
settlement 
of 
a 
benefit 
plan 
when 
the 
curtailment 
or 
settlement occurs. 
The 
gain 
or 
loss 
on curtailment 
or 
settlement comprises 
any 
resulting 
change in 
the fair 
value of 
plan assets, 
any change in 
the present 
value of 
the defined 
benefit obligation, 
any related actuarial gains and losses and past service costs that had not 
been previously recognised. 
Short-term employee benefits 
Short-term employee 
benefit obligations are 
measured on 
an undiscounted 
basis and 
are expensed 
as the 
related service is provided. A provision is recognised for the amount expected to be paid under short-term 
cash bonus 
or profit-sharing 
plans if 
the Group 
has a 
present legal 
or constructive 
obligation to 
pay this 
amount as a result of past service provided by the employee and the 
obligation can be estimated reliably.

                            
ii. Provision for lawsuits and litigations 
Settlement of a lawsuit 
represents an individual potential 
obligation. Determining the best 
estimate either 
involves expected value calculations, 
where possible outcomes, 
stated based on a legal 
study, are weighted 
by their likely probabilities or it is the single most likely outcome, adjusted as appropriate to consider risk 
and uncertainty. 
iii. Provision for emission rights 
A provision for 
emission rights is recognised 
regularly during the 
year based on the 
estimated number of 
tonnes of CO2 emitted. It is measured at the 
best estimate of the expenditure required to settle the 
present 
obligation at the reporting date. 
iv. Restructuring 
A provision 
for restructuring 
is recognised 
when the 
Group has 
approved a 
detailed and 
formal restructuring 
plan, and the 
restructuring either has commenced 
or has been 
announced publicly. 
Future operating costs 
are not provided for. 

                              v. Asset retirement obligation and provision for environmental remediation 
Certain property, plant 
and equipment 
of conventional 
and renewable 
power plants 
and gas 
storage facilities 
have 
to 
be 
dismantled 
and 
related 
sites 
have 
to 
be 
restored 
at 
the 
end 
of 
their 
operational 
lives. 
These 
obligations are 
the result 
of prevailing 
environmental regulations 
in the 
countries concerned, 
contractual 
agreements, or an implicit Group commitment. 
Obligations 
arising 
from 
the 
decommissioning 
or 
dismantling 
of 
property, 
plant 
and 
equipment 
are 
recognised in connection with the initial recognition of the 
related assets, provided that the obligation can 
be 
reliably 
estimated. 
The 
carrying 
amounts 
of 
the 
related 
items 
of 
property, 
plant 
and 
equipment 
are 
increased 
by the 
same 
amount that 
is 
subsequently amortised 
as 
part 
of 
the 
depreciation process 
of 
the 
related assets. 
A 
change in 
the 
estimate of 
a provision 
for 
the decommissioning 
and restoration 
of 
property, 
plant and 
equipment is generally recognised against a corresponding adjustment to 
the related assets, with no effect 
on profit or loss. If the related items of property, plant and equipment have already been fully depreciated, 
changes in the estimate are recognised in profit or loss. 
No provisions are recognised for contingent asset retirement 
obligations where the type, scope, timing and 
associated probabilities cannot be determined reliably. 

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
29 

            
                  
                        
                              Provisions for environmental remediation in 
respect of contaminated sites are 
recognised when the site is 
contaminated and when there is a legal or constructive obligation to remediate 
the related site. 
Provisions are recognised for the following restoration activities: 
●
dismantling and removing structures;
●
abandonment of production, exploration and storage wells;
●
dismantling operating facilities; 
●
closure of plant and waste sites; and
●
restoration and reclamation of affected areas. 
The entity records the present value of the provision in the period in 
which the obligation is incurred. The 
obligation 
generally arises 
when 
the 
asset is 
installed or 
the 
environment is 
disturbed 
at 
the 
production 
location. When the liability is initially 
recognised, the present value of 
the estimated costs is capitalised 
by 
increasing 
the 
carrying 
amount 
of 
the 
related 
assets. 
Over 
time, 
the 
discounted 
liability 
is 
increased 
to 
reflect the change in 
the present value based 
on the discount rates 
that reflect current market 
assessments 
and the risks specific to the liability. The periodic unwinding of the discount is recognised in profit or loss 
as a finance cost. 
All 
the 
provisions 
for 
environmental 
remediation 
and 
asset 
retirement 
obligation 
are 
presented 
under 
Provision for restoration and decommissioning.

                            
 
vi. Onerous contracts 
A provision 
for onerous 
contracts is 
recognised when 
the expected 
benefits to 
be derived 
by the 
Group from 
a contract are lower than 
the unavoidable costs of 
meeting its obligations under the 
contract. The provision 
is 
measured 
at 
the 
present 
value 
of 
the 
lower 
of 
the 
expected 
cost 
of 
terminating 
the 
contract 
and 
the 
expected net cost of 
continuing with the contract. 
Before a provision is 
established, the Group recognises 
any impairment loss on the assets associated with that contract.

                      

                        (m) 
Leases 
Definition of a lease 
An agreement is or contains a 
leasing arrangement if it gives 
the customer the right to 
control the use of an 
identified asset in a time period in exchange for 
consideration. Control exists if the customer has the right 
to obtain substantially all economic benefits from the use of the asset and 
also the right to direct its use. 
The Group has elected 
not to recognise 
right-of-use assets and 
lease liabilities for 
some leases of 
low-value 
assets and 
short-term leases (lease 
term 12 months 
or shorter). The 
Group recognises the 
lease payments 
associated with these leases as an expense. 
An accounting unit uses this standard for all rentals, including a rental with a right of 
use as a part of sub-
leasing, with the exception of rental for the purpose of investigating or using minerals, oil, natural gas and 
similar renewable resources; 
rental of biological assets 
as a part of the 
IAS 41 Agriculture standard 
held by 
the lessee; concessions for 
services as a 
part of IFRIC 12 
Service Concession Arrangements; licences for 
intellectual 
property 
provided 
by 
the 
lessor 
to 
the 
extent 
of 
IFRS 
15 
Revenue 
from 
Contracts 
with 
Customers; and intangible assets in scope of IAS 38 Intangible Assets. 
Lessor accounting
 
Lessor classifies leasing as either financial or operating. Lease is classified as a finance 
lease if it transfers 
substantially all the risks and rewards incidental 
to ownership of an underlying asset. A 
lease is classified 
as an operating lease 
if it does not 
transfer substantially all 
the risks and rewards 
incidental to ownership 
of 
an underlying asset. 
In the 
case of 
financial leasing 
the lessor 
reports in 
its statement 
of financial 
position a 
receivable in 
an 
amount equal to the net 
financial investment in the 
leasing. In the statement 
of comprehensive income then 
during the leasing term it reports financial revenues. 
In the case of operating 
leasing the lessor recognises 
an underlying asset in 
the report on financial 
position. 
In the income statement then during the leasing term it reports leasing payments as revenues on a straight-
line basis over the lease term and depreciation of the underlying asset as 
an expense. 

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
30 

            
                  
                        Lease of land or lease of land and building 
In the event of the lease of 
land that is not covered by IAS 40 
or IAS 2, it is always an 
operating lease. In 
the case of 
the lease of 
a building 
and land, the 
total rent is 
divided proportionately 
into rent for 
the building 
and rent for the land in accordance with the fair value. 
Lessee accounting 
Upon the commencement 
of a 
leasing arrangement, 
the lessee 
recognises a 
right-of-use asset 
against a 
lease 
liability, which is valued 
at the 
current value 
of the 
leasing payments 
that are not 
paid at 
the commencement 
date, discounted using the interest 
rate implicit in the lease 
or, if that rate cannot be readily determined, 
the 
Group’s incremental borrowing rate. Incremental 
borrowing rate is 
determined based on 
interest rates from 
selected external financial sources and adjustments made to reflect the 
terms of the lease. 
Exception option 
applies for 
short-term leases 
(lease term 
12 months 
or shorter) 
and leases 
of low 
value 
assets (lower than 
5 thousand EUR). 
The Group has 
elected not to 
recognize right-of-use assets for 
these 
leases. Lease payments are recognised as an expense on a straight-line 
basis over lease period. 
The 
lease 
liability 
is 
subsequently 
measured 
at 
amortized 
cost 
under 
the 
effective 
interest 
rate 
method. 
Lease liability is remeasured if there is a change in: 
●
future lease payments 
arising from change in an index or rate; 
●
estimated future amounts payable under a residual guaranteed value; 
●
the assessment of the exercise of purchase, extension or termination 
option; 
●
in-substance fixed lease payments; or 
●
in the scope 
of a lease 
or consideration for 
a lease (lease 
modification) that is 
not accounted as 
a 
separate lease. 
When the lease liability 
is remeasured, a corresponding adjustment 
is made to the 
carrying amount of the 
right-of-use assets. In case the 
right-of-use assets has been 
reduced to zero, the adjustment 
is recognized in 
profit or loss. 
The Group presents right-of-use assets 
in property, 
plant and equipment, the 
same line item as 
it presents 
underlying assets of the 
same nature that it 
owns. The right-of-use assets is 
initially measured at cost 
and 
subsequently 
at 
cost 
less 
any 
accumulated 
depreciation 
and 
impairment 
losses 
and 
adjusted 
for 
certain 
remeasurements of the lease liability. 
In a statement 
of comprehensive 
income, the lessee 
reports interest expense 
and (straight-line) depreciation 
of a right-of-use asset. A company (lessee) depreciates 
an asset in accordance with the requirements of 
the 
IAS 16. 
The asset 
is depreciated 
from the 
commencement date 
to the 
end of 
the lease 
term. If 
the underlying 
asset is transferred to 
the Group at the 
end of the lease term, 
the right-of-use asset is depreciated 
over the 
useful life of the underlying asset. 
Service part of a lease payment 
Companies within 
the Group accounting 
for leases of 
vehicles do 
not separate 
the service fee 
from the lease 
payments. 
Total 
lease 
payments 
are 
used 
to 
calculate the 
lease 
liability. 
For 
other 
leasing 
contracts the 
service fee is 
separated from 
the lease payments. 
Service fee 
is recognised 
as a current 
expense in 
statement 
of comprehensive income, remaining part is used to calculate the leasing 
liability. 
Lease term 
The lease term is determined at the lease 
commencement date as the non-cancellable period together with 
periods covered by an extension (or by a termination) option if the Group is reasonably certain to exercise 
such option. 
Where the lease contract is concluded 
for an indefinite period with option 
to terminate the lease available 
both 
to the 
lessor and 
the 
lessee, the 
Group assesses 
the lease 
term as 
the longer 
of 
(i) notice 
period to 
terminate 
the 
lease 
and, 
(ii) 
period 
over 
which 
there 
are 
present 
significant 
economic 
penalties 
that 
disincentives the Group from 
terminating the lease. In 
case the assessed lease term 
is for a period below 
12 
months, the Group applies the short-term recognition exemption. 
Subleasing 

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
31 

            
                  
                        The 
classification 
of 
subleasing 
into 
financial 
and 
operating 
is 
governed 
primarily 
by 
the 
original 
agreement, where, 
if the 
primary agreement 
is short-term, it 
is always an 
operating leasing 
arrangement and 
then the 
properties of 
the actual 
sublease are 
assessed. When 
assessing the 
classification, the 
value of 
a 
right-of-use asset, not the 
value of the 
underlying asset, is taken 
into consideration. If the 
lessee provides 
or 
assumes 
that 
it 
will 
provide 
subleasing 
of 
an 
asset, 
the 
main 
leasing 
arrangement does 
not 
meet 
the 
conditions for leasing of low value assets. 
Renewal options 
The Group 
has applied 
judgement to 
determine the 
lease term 
for some 
lease contracts 
in which 
it is 
a lessee 
that include renewal options. 
The assessment of whether 
the Group is reasonably 
certain to exercise such 
options impacts the 
lease term, which 
significantly affects the 
amount of lease 
liabilities and right-of-use 
assets recognised.

                      
 

                        (n) 
Revenue 
i. Revenues from contracts with customers 
The Group 
applies a 
five-step model 
to determine 
when to 
recognise revenue, 
and at 
what amount. 
The 
model 
specifies 
that 
revenue 
should 
be 
recognised 
when 
(or 
as) 
an 
entity 
transfers 
control 
of 
goods 
or 
services to a 
customer at the 
amount to which 
the entity expects 
to be 
entitled. Depending on 
the criteria 
for meeting the performance obligation, the revenue is recognised: 
●
over time, in a manner that depicts the entity’s performance; or 
●
at a point in time, when control of the goods or services is transferred 
to the customer. 
Sales transactions 
usually contain variable 
consideration and usually 
do not 
contain significant financing 
component. Certain sales transactions contain also non-cash consideration. 
The Group has identified following main sources of Revenue in scope of IFRS 15 (for complete source of 
Group’s 
revenues refer 
to Note 
7 – 
Revenues, for more 
information on contracts 
with customers 
refer to 
Note 5 – Operating segments): 
●
Sale of gas, electricity, heat or other energy products (energy products) 
Revenues 
from 
power 
production 
(wholesale) 
are 
recognized 
based 
on 
the 
volume 
of 
power 
delivered to the grid and price per contract or as of the market price 
on the energy exchange. 
The 
Group 
recognises 
the 
revenue 
upon 
delivery 
of 
the 
energy 
products 
to 
the 
customer. 
The 
moment of the 
transfer of the 
control over the 
products is considered 
at the moment 
of delivery, i.e. 
when the customer gains the benefits and the Group fulfils the performance 
obligation. 
Revenues from energy supply to end consumers 
are measured using transaction prices 
allocated to 
those goods transferred, reflecting the volume of energy supplied, including the estimated volume 
supplied between 
last invoice 
date and 
end of 
the period. 
For B2C 
customers advance 
payments 
are required in general based on historical consumption, 
those are settled when the actual supplied 
volumes are 
known. While 
B2B customers 
are usually 
invoiced with 
higher frequency 
based on 
actually volumes supplied. 
Where 
the 
Group acts 
as 
energy 
provider it 
was 
analysed if 
the 
distribution service 
invoiced is 
recognised as 
revenue from 
customers under 
IFRS 15. 
Judgement may 
be required 
to determine 
whether the Group acts 
as principal or agent 
in those cases. It 
has been concluded that 
the Group 
acts as 
a principal 
because it 
has the 
inventory risk 
for distribution 
services, and 
therefore materially 
all 
distribution 
services 
which 
are 
billed 
to 
its 
customers 
as 
part 
of 
the 
revenues 
from 
energy 
delivery are presented gross in the statement of comprehensive 
income. 
●
Gas and electricity infrastructure services 
The 
Group 
provides 
services 
connected 
with 
the 
infrastructure 
by 
providing 
transmission 
or 
distribution of energy products or by providing storage 
capacities. Some of these services include 
ship-or-pay 
clauses 
(at 
gas 
transmission 
business) 
and 
store-or-pay 
clauses 
(at 
gas 
storage 
business), which 
reserve daily 
or monthly 
capacity for 
the customer 
with corresponding 
billing. 
The revenues from 
all these contracts 
are recognised over 
the time of contract. 
As the Group 
fulfils 

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
32 

            
                  
                        the performance obligation arisen from those contracts over the time 
of the contract, the revenues 
are recognised based 
on reserved 
capacity (gas transmission, 
gas distribution and 
gas storage) or 
distributed volume of energy (electricity distribution). 
The 
transaction 
price 
comprises 
of 
fix 
consideration 
(nominated 
capacity 
fees) 
and 
variable 
consideration (fee adjustments based on transmitted/distributed volume, and fee adjustment based 
on 
difference 
in 
quality 
of 
transmitted 
gas 
on 
input 
and 
output). 
The 
variable 
consideration 
is 
recognized 
as 
incurred 
as 
it 
is 
constrained by 
uncertainty related 
to 
factors 
outside the 
Group’s 
influence (such 
as energy 
demand volatility 
and weather 
conditions). The 
services are 
generally 
billed on monthly basis. 
In 
case 
of 
transmission 
services 
part 
of 
the 
remuneration 
is 
collected 
in 
the 
form 
of 
non-cash 
consideration 
provided 
in 
the 
form 
of 
natural 
gas 
(payment 
for 
gas 
transmission services). 
The 
Group measures the non-cash consideration received at fair value. 
The 
Group 
has 
evaluated 
that 
the 
several 
items 
of 
gas 
and 
electricity 
equipment 
(typically 
connection terminals) 
obtained “free 
of charge” 
from developers 
and from 
local authorities 
does 
not represent a grant (because in such cases the local authorities 
act in the role of a developer) and 
do not constitute a distinct performance obligation. This equipment is recorded as property, 
plant, 
and equipment at 
the costs incurred 
by the developers 
and local 
authorities with a 
corresponding 
amount recorded 
as contract 
liability as 
receipt of 
the free 
of charge property 
is related 
to obligation 
to distribute energy to the 
customers (a non-cash consideration). These costs approximate the 
fair 
value of the obtained assets. 
ii. Derivatives where the underlying asset is a commodity 
Cash-settled contracts and 
contracts that 
do not 
qualify for the 
application of 
the own-use 
exemption are 
regarded as trading derivatives. 
The following 
procedure applies 
to other 
commodity and 
financial derivatives 
that are 
not designated 
as 
hedging derivatives and are 
not intended for 
the sale of electricity 
from the Group’s 
sources, for delivery 
to end customers or for consumption as a part of the Group’s ordinary business (the own-use exemption is 
not applied). 
At the 
date of 
the financial 
statements, trading 
derivatives are measured 
at fair 
value. The 
change in 
fair 
value 
is 
recognised 
in 
profit 
or 
loss. 
The 
measurement 
effect 
for 
commodity 
derivatives 
with 
emission 
rights is included in line item “Emission rights, net”. 
iii. Rental income 
Rental income from 
investment property is 
recognised in profit 
or loss on 
a straight-line basis 
over the term 
of the lease.

                      
 

                        (o) 
Government grants 
Government 
grants 
are 
recognised 
initially 
at 
fair 
value 
as 
deferred 
income 
when 
there 
is 
reasonable 
assurance that they will be received 
and that the Company will comply 
with the conditions associated with 
the grant. Grants that compensate the Company for expenses incurred are recognised in profit or loss 
on a 
systematic 
basis 
in 
the 
same 
periods 
in 
which 
the 
expenses 
the 
grant 
is 
intended 
to 
compensate 
are 
recognised. Grants that compensate 
the Company for the cost 
of an asset are recognised 
in profit or loss on 
a systematic basis over the useful life of the asset.

                      

                        (p) 
Finance income and costs 

                              i. Finance income 
Finance income comprises 
interest income on 
funds invested, dividend 
income, changes in 
the fair value 
of financial assets at fair value through profit 
or loss, foreign currency gains, gains on sale of 
investments 
in 
securities 
and 
gains 
on 
hedging 
instruments 
that 
are 
recognised 
in 
profit 
or 
loss. 
Interest 
income 
is 
recognised in profit 
or loss as 
it accrues, using 
the effective interest 
method. Dividend 
income is recognised 
in profit or loss on the date that the Group’s right to receive payment is established. 

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
33 

            
                  
                        
                              
                                    ii. Finance costs 
Finance costs comprise interest 
expense on borrowings, unwinding of 
the discount on 
provisions, foreign 
currency losses, 
changes in 
the fair 
value of 
financial assets 
at fair 
value through 
profit or 
loss, fees 
and 
commissions expense for payment transactions and guarantees, impairment losses recognised on financial 
assets, and losses on hedging instruments that are recognised in 
profit or loss.

                                  

                            

                              iii. Borrowing costs 
Borrowing costs 
that arise 
in connection 
with the 
acquisition, construction 
or production 
of a 
qualifying 
asset, 
from 
the 
time 
of 
acquisition 
or 
from 
the 
beginning of 
construction 
or 
production 
until 
entry 
into 
service, 
are 
capitalised and 
subsequently amortised 
alongside the 
related asset. 
In 
the 
case 
of a 
specific 
financing 
arrangement, 
the 
respective 
borrowing 
costs 
for 
that 
arrangement 
are 
used. 
For 
non-specific 
financing arrangements, borrowing costs to be 
capitalised are determined based on a 
weighted average of 
the borrowing costs.

                            

                      

                        (q) 
Income taxes 
Income taxes comprise 
current and deferred 
tax. Income taxes 
are recognised in 
profit or loss, except 
to the 
extent 
that 
they 
relate 
to 
a 
business 
combination 
or 
to 
items 
recognised 
directly 
in 
equity 
or 
in 
other 
comprehensive income. 
Current tax is the expected 
tax payable or receivable on 
the taxable income or 
loss for the reporting period, 
using tax rates 
enacted at the 
reporting date, and 
any adjustment to 
tax payable in 
respect of previous 
years. 

                              Deferred tax is measured using 
the balance sheet method, providing 
for temporary differences between the 
carrying amounts of 
assets and liabilities 
for financial reporting 
purposes and the 
amounts used for 
taxation 
purposes. 
No 
deferred 
tax 
is 
recognised 
on 
the 
following 
temporary 
differences: 
temporary 
differences 
arising from the initial recognition of 
assets or liabilities that is not a 
business combination and that affects 
neither 
accounting 
nor 
taxable 
profit 
or 
loss, 
and 
temporary 
differences 
relating 
to 
investments 
in 
subsidiaries and jointly controlled 
entities to the 
extent that it is 
probable that they will 
not reverse in the 
foreseeable future. No deferred tax is recognised on the initial recognition 
of goodwill. 
The amount of deferred tax 
is based on the 
expected manner of realisation or 
settlement of the temporary 
differences, using tax rates enacted or substantively enacted at the reporting date. 
Deferred 
tax 
assets 
and 
liabilities 
are 
offset 
if 
there 
is 
a 
legally 
enforceable 
right 
to 
offset 
current 
tax 
liabilities and assets, and they relate to income 
taxes levied by the same tax 
authority on the same taxable 
entity, or on different tax entities, but there is an intention 
to settle current tax liabilities 
and assets on a net 
basis, or the tax assets 
and liabilities will be realised simultaneously. 
A deferred 
tax asset 
is recognised 
only to 
the extent 
that it 
is probable 
that future 
taxable profits 
will be 
available 
against 
which 
the 
unused 
tax 
losses, 
tax 
credits 
and 
deductible 
temporary 
differences 
can 
be 
utilised. Deferred tax 
assets are reduced 
to the extent 
that it is 
no longer probable 
that the related 
tax benefit 
will be realised.

                            

                      
 

                        (r) 
Dividends 
Dividends are recognised as distributions within equity upon approval 
by the Company’s shareholders.

                      

                        
                              (s) 
Non-current assets held for sale and disposal groups 
Non-current assets 
(or disposal groups 
comprising assets 
and liabilities) 
which are 
expected to 
be recovered 
primarily through 
sale rather than 
through continuing 
use are classified 
as held for 
sale. Immediately before 
classification as held for sale, the assets (and all 
assets and liabilities in a disposal group) are re-measured 
in accordance with the Group’s relevant accounting 
policies. Then, on initial classification 
as held for sale, 
non-current assets and disposal groups are recognised at the 
lower of their carrying amount and fair value 
less costs to 
sell. If an investment 
or portion of an 
investment in associate or joint 
venture is classified as 
held for 
sale, it 
is measured 
at the 
lower of 
its existing 
carrying amount 
and fair 
value less 
cost to 
sell. 
Equity method of accounting is not applied since the classification as held 
for sale. 
Any impairment 
loss on 
a disposal 
group is 
first allocated 
to goodwill, 
and then 
to remaining 
assets and 
liabilities on 
a pro 
rata basis, except 
that no 
loss is 
allocated to 
inventories, financial assets, 
deferred tax 

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
34 

            
                  
                        
                              assets, and investment 
property, which continue to 
be measured in 
accordance with the 
Group’s accounting 
policies. 
Impairment losses on initial 
classification as held for 
sale are included in 
profit or loss. The 
same applies 
to gains and 
losses on subsequent 
re-measurement. Gains are not 
recognised in excess 
of any cumulative 
impairment loss. 
Any gain or 
loss on the 
re-measurement of a 
non-current asset (or 
disposal group) 
classified as held 
for sale 
that does not 
meet the definition 
of a discontinued 
operation is included 
in profit or 
loss from continuing 
operations. 
Any separate 
major line 
of business 
or geographical 
area of 
operations or 
significant part 
of business, 
which 
is decided 
to be 
sold, is 
classified as 
discontinued operations 
and is 
presented in 
profit or 
loss under 
separate 
line Profit (loss) from discontinued operations, net of tax.

                            

                      

                        (t) 
Segment reporting 
Due to the fact 
that the Group 
has issued debentures 
(Senior Secured Notes) 
which were listed 
on the Stock 
Exchange, the Group reports segmental information in accordance with 
IFRS 8. 
Segment results 
that are 
reported to 
the Group’s 
board of 
directors (the 
chief operating 
decision maker) 
include items 
directly attributable 
to the 
segment as 
well 
as those 
that can 
be allocated 
on a 
reasonable 
basis.

                      

                

          
 

            
                  4. 
Determination of fair values 
A number 
of the 
Group’s 
accounting policies and 
disclosures require the 
determination of 
fair value, 
for 
both financial and 
non-financial assets and liabilities. 
Fair values have 
been determined for measurement 
and/or disclosure 
purposes based 
on the 
following methods. 
When applicable, 
further information 
about 
the assumptions made in determining fair values is disclosed in 
the notes specific to that asset or liability. 
(a)
Property, plant and equipment 
The fair value of 
property, plant 
and equipment recognised as 
a result of a 
business combination is based 
on three different approaches which may be employed to determine the fair value: 
Market approach
 
uses prices 
and other 
relevant information 
generated by 
market transactions 
involving 
identical or comparable 
(i.e. similar) assets, 
liabilities or 
a group of 
assets and liabilities, 
such as a 
business. 
For example, valuation techniques consistent 
with the market approach often use 
market multiples derived 
from a set of comparables. 
Income approach
 
converts future amounts 
(e.g. cash flows 
or income and expenses) 
to a single current 
(i.e. 
discounted) amount. 
When the income 
approach is 
used, the fair 
value measurement 
reflects current 
market 
expectations about those future amounts. 
Cost 
approach
 
is 
based on 
the 
premise that 
a 
prudent investor 
would pay 
no more 
for 
an asset 
than its 
replacement 
or 
reproduction 
cost. 
The 
depreciated 
replacement 
cost 
approach 
involves 
establishing 
the 
gross 
current 
replacement 
cost 
of 
the 
asset, 
and 
then 
depreciating 
this 
value 
to 
reflect 
the 
anticipated 
effective working life of the asset from new, the age of the asset, the estimated residual value at the end of 
the asset's working life and the loss in service potential 
IFRS 13 
requires fair 
value measurements 
of assets 
to assume 
the highest 
and best 
use of 
the asset 
by market 
participants, provided that 
the use 
is physically 
possible, financially feasible 
and not 
illegal. Highest and 
best 
use 
might 
differ 
from 
the 
intended 
use 
by 
an 
individual 
acquirer. 
Although 
all 
three 
valuation 
approaches 
should 
be 
considered 
in 
the 
valuation 
analysis, 
the 
fact 
pattern 
surrounding 
each 
business 
combination, the 
purpose of 
valuation, the 
nature of 
the assets, 
and the 
availability of 
data dictate 
which 
approach or 
approaches including 
accounting oriented approaches 
are ultimately 
utilized to 
calculate the 
value of each tangible asset.
Selected 
items 
of 
property, 
plant 
and 
equipment 
– 
gas 
transmission 
pipeline 
owned 
and 
operated 
by 
eustream, a.s. and gas distribution pipelines owned and operated by SPP – distribúcia, a.s. (“SPPD”) – are 
recognized 
in 
revalued 
amount 
in 
accordance 
with 
IAS 
16 
since 
1 
January 
2019 
and 
1 
January 
2020, 
respectively. The revalued amount 
represents the fair 
value as at 
the date of 
the most recent 
revaluation, net 

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
35 

            
                  of 
any 
subsequent 
accumulated 
depreciation 
and 
subsequent 
accumulated 
impairment. 
The 
most 
recent 
revaluation was prepared as 
at 1 August 
2019 for eustream, a.s. 
and as at 
1 August 2018 for 
SPPD by an 
independent expert and will be carried out regularly (at 
least every five years), so that the carrying amount 
does not differ materially from the amount recognised on the balance sheet date using 
fair values. 
Each revaluation was 
conducted by an 
independent expert who 
used mainly the 
depreciated replacement 
cost approach supported by the 
market approach for some types 
of asset. In general, the 
replacement cost 
method 
was 
used 
and 
the 
indexed 
historical 
cost 
method 
for 
assets 
where 
reproductive 
rates 
were 
not 
available. By determining the fair value of individual 
assets with the cost approach, physical deterioration, 
plus technological and economic obsolescence of assets was acknowledged. 
The assumptions used in the revaluation 
model are based on the reports 
of the independent appraisers. The 
resulting reported amounts 
of these assets 
and the related 
revaluation surplus of 
assets do not 
necessarily 
represent the 
value in 
which these 
assets could 
or will 
be sold. 
There are 
uncertainties about 
future economic 
conditions, 
geopolitics, 
changes 
in 
technology, 
trends 
and 
preferences 
in 
terms 
of 
environmental 
sustainability and the competitive environment 
within the industry, which could potentially result in 
future 
adjustments to estimated revaluations and 
useful lives of assets 
that can significantly modify the 
reported 
financial position and profit. For further information, refer to Note 15 
– Property, plant and equipment. 
(b)
Intangible assets 
The 
fair 
value 
of 
intangible 
assets 
recognised 
as 
a 
result 
of 
a 
business 
combination 
is 
based 
on 
the 
discounted cash flows expected to be derived from the use or eventual sale 
of the assets. 
(c)
Inventories 
The 
fair 
value 
of 
inventories 
acquired 
in 
a 
business 
combination 
is 
determined 
based 
on 
the 
estimated 
selling 
price 
in 
the 
ordinary 
course 
of 
business 
less 
the 
estimated 
costs 
of 
completion 
and 
sale, 
and 
a 
reasonable profit margin based on the effort required to complete and sell the inventories. 
(d)
Non-derivative financial assets 
The fair value of 
financial assets at fair 
value through profit or 
loss, debt and equity 
instruments at FVOCI 
and financial assets 
at amortized cost 
is based on 
their quoted market 
price at the 
reporting date without 
any deduction 
for transaction 
costs. If 
a quoted 
market price 
is not 
available, the 
fair value 
of the 
instrument 
is estimated by management using pricing models or discounted cash 
flows techniques. 
Where discounted cash flow techniques are used, estimated future cash 
flows are based on management’s 
best estimates 
and the 
discount rate 
is a 
market-related rate 
at the 
reporting date 
for an 
instrument with 
similar terms and conditions. 
Where pricing models 
are used, inputs are 
based on market-related 
measures 
at the reporting date. 
The 
fair 
value 
of 
trade 
and 
other 
receivables 
is 
estimated 
as 
the 
present 
value 
of 
future 
cash 
flows, 
discounted at the market rate of interest at the reporting date. 
The fair 
value of 
trade and 
other receivables 
and of 
financial assets 
at amortized 
cost is 
determined for 
disclosure purposes only. 
(e)
Non-derivative financial liabilities 
Fair value, which is determined for disclosure 
purposes, is calculated based on the present value 
of future 
principal and interest cash flows, discounted at 
the market rate of interest at the 
reporting date. For finance 
leases the market rate of interest is determined by reference to similar lease 
agreements. 
(f)
Derivatives 
The fair value of forward electricity 
and gas contracts is based on 
their listed market price, if available. 
If 
a listed market price is not 
available, then fair value is 
estimated by discounting the difference between 
the 
contractual forward 
price and 
the current forward 
price for the 
residual maturity 
of the contract 
using a 
risk-
free interest rate (based on zero coupon rates). 
The fair value 
of interest 
rate swaps is 
based on broker 
quotes or internal 
valuations based 
on market 
prices. 
Those quotes or valuations are tested for reasonableness by discounting estimated future cash flows based 

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
36 

            
                  on the 
terms and 
maturity of 
each contract and 
using market interest 
rates for 
a similar 
instrument at the 
measurement date. 
The fair value 
of other derivatives 
(exchange rate, commodity, foreign 
CPI indices) 
embedded in a 
contract 
is estimated 
by discounting 
the difference 
between the 
forward values 
and the 
current values 
for the 
residual 
maturity of the contract using a risk-free interest rate (based on zero coupon 
rates). 
Fair values reflect 
the credit risk 
of the instrument 
and include adjustments 
to take account 
of the credit 
risk 
of the Group entity and counterparty when appropriate.

                

          

            
                  5. 
Operating segments 
The 
Group 
operates 
in 
four 
reportable 
segments 
under 
IFRS 
8: 
Gas 
transmission, 
Gas 
and 
power 
distribution, Gas storage and Heat Infra. 
The 
Group 
identifies 
its 
operating 
segments 
at 
the 
level 
of 
each 
legal 
entity, 
the 
Group 
management 
monitors the performance of each 
entity through monthly management reporting. Operating segments are 
aggregated to four reportable 
segments mainly based on 
nature of the services 
provided. A description of 
each segment 
is provided 
in the 
following paragraphs. 
Each reportable 
segment aggregates 
entities with 
similar 
economic 
characteristics 
(type 
of 
services 
provided, commodities 
involved 
and 
regulatory 
environment). Internal reports used 
by the EPIF’s “chief operating decision 
maker” (Board of Directors) 
to 
allocate resources 
to the 
segments and assess 
their performance 
follow these 
reportable segments. Major 
indicators used 
by the 
Board of 
Directors to 
measure these 
segments’ performance 
is operating 
profit before 
depreciation, amortization and negative goodwill (“Underlying EBITDA”) 
and capital expenditures. 
i.
Gas transmission 
The Group’s Gas Transmission Business is operated 
through Eustream, which 
is the owner and operator 
of 
one 
of the 
main European 
gas 
pipelines and 
is the 
only 
gas transmission 
system operator 
in 
the 
Slovak 
Republic. The transmission network of Eustream is part of 
the Central Corridor which is one of the largest 
and the most important 
piped gas import 
route into Europe 
based on volume 
of gas transmitted. 
Eustream’s 
pipelines have unique positioning to supply gas 
to Central European and Southern European gas markets, 
irrespective of the gas source and flows pattern. 
Eustream generates revenue primarily by charging tariffs for the transmission of gas through its pipelines. 
Shippers are obliged to pay the capacity 
fees for the booked capacity irrespective 
of whether such capacity 
is utilised by 
the shipper as 
all contracts, regardless 
of duration, are 
based on a 
100 per cent. 
ship-or-pay 
principle. In 
addition, a 
portion of revenue 
is generated 
via sale 
of gas 
in-kind, which 
Eustream receives 
from 
shippers 
and which 
remains in 
the 
network 
of Eustream 
after 
serving the 
network’s 
technological 
needs. 
The transmission fees 
are fixed from 
the start for 
each contract and 
are therefore not 
subject to unilateral 
renegotiation, termination 
or other adjustments 
other than for 
inflation. In addition 
to the transmission 
fees, 
network users 
are required 
to provide 
gas in-kind 
for operational 
needs, predominantly 
as a 
fixed percentage 
of commercial 
gas transmission 
volume at 
each entry 
and exit 
point. The 
network users 
may agree 
with 
Eustream to provide gas in-kind in a financial 
form. Gas for operational needs covers, among 
other things, 
the 
energy 
needs 
for 
the 
operation 
of 
compressors 
and 
the 
gas 
balance 
differences 
related 
to 
the 
measurement of gas flows. As Eustream is legally responsible 
for network balance, it sells any gas in-kind 
it has 
received that 
is not 
consumed. Since 
the volume 
of gas 
in-kind is 
variable, any 
revenue from 
this 
mandatory sale of residual gas in-kind is also variable. 
Majority of 
the gas 
transmitted through the 
network of Eustream 
stems from 
a long-term contract 
with a 
prominent 
Russian shipper 
of 
gas, 
while the 
residual volumes 
are 
mostly 
based on 
short-term 
contracts 
concluded with 
European utilities, 
gas suppliers 
and gas 
traders. These contracts 
entitle shippers 
to transmit 
the natural 
gas through 
the Eustream’s 
network to/from 
the Czech 
Republic, Austria, 
Ukraine, Hungary 
and 
since 
late 
2022 
also 
Poland. 
The 
Group 
assessed 
the 
contractual 
conditions 
in 
the 
ship-or-pay 
arrangements and 
concluded that 
there is no 
derivative included 
as these 
contracts do 
not provide 
the Group 
with 
any 
flexibility 
and 
the 
capacity 
booked 
has 
to 
be 
always 
provided 
to 
the 
customer. 
Revenue 
is 
recognised based on 
the booked capacity 
stipulated in the contract 
(fixed element) and 
actual transmitted 
volume which affects the amount of gas in-kind received from the shippers (variable element). 

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
37 

            
                  Since 
2005 
charges 
are 
fully 
regulated 
by 
Energy 
Regulatory 
Authority 
(“RONI”). 
The 
regulatory 
framework provides 
a stable 
and sustainable 
environment for 
the transmission 
business. Until the 
end of 
2021, 
transmission 
tariffs 
in 
the 
Slovak 
Republic 
were 
set 
directly 
by 
RONI 
purely 
based 
on 
a 
direct 
comparison of 
tariffs (also 
known as 
benchmarking) with 
other TSOs, 
primarily competitors 
across Europe, 
and were not directly impacted by natural 
gas prices or other elements (except 
for EU inflation rate). From 
January 2022, 
benchmarking of tariffs 
remained to 
be used 
as the 
secondary adjustment 
of the 
reference 
prices calculated 
primarily on 
the 
cost base 
principles. Gas 
transmission prices 
in 
existing contracts 
are 
generally not affected by 
tariff changes as tariffs 
are generally fixed for the 
life of the applicable 
contract 
(subject only 
to adjustments 
to reflect 
inflation), but 
the gas 
transmission prices 
in new 
contracts are 
set 
under at then applicable regulation and thereafter are held constant. 
Because 
of 
the 
contractual nature 
of 
the 
long-term 
contract 
with 
the 
prominent Russian 
shipper 
of 
gas, 
management carefully assessed 
the contractual conditions 
with the respect to 
whether the contract includes 
any significant lease 
arrangement as per 
IFRS 16. As 
there is no 
indication that the 
Russian shipper is 
in 
control 
of the 
asset and 
there are 
several 
other shippers 
using the 
asset, management 
concluded that 
no 
material indications 
of such 
leasing relationship 
were noted 
and that 
the transmission 
pipeline should 
be 
recognised 
in 
Eustream’s 
balance 
sheet 
and 
related 
shipping 
arrangements accounted 
for 
in 
accordance 
with IFRS 15. 
ii.
 
Gas and power distribution 
The Gas and power distribution segment consists of Power distribution division, Gas 
distribution division 
and Supply division. 
The Power distribution 
division distributes electricity 
in the central 
Slovakia region 
while 
the 
Gas 
distribution 
division 
is 
responsible 
for 
distribution 
of 
natural 
gas 
covering 
almost 
the 
complete gas distribution network 
in Slovakia. The 
Supply division primarily supplies 
power and natural 
gas 
to 
end-consumers 
in 
the 
Czech 
Republic 
and 
Slovakia. 
This 
segment 
is 
mainly 
represented 
by 
Stredoslovenská 
energetika 
Holding, 
a.s. 
(further 
“SSE”), 
Stredoslovenská 
distribučná, 
a.s. 
(further 
“SSD”), 
SPP 
– 
distribúcia, 
a.s. 
(further 
“SPPD”), 
EP 
ENERGY 
TRADING, 
a.s. 
(further 
“EPET”) 
and 
Dobrá Energie s.r.o. 
The 
companies 
SPPD 
and 
SSD, 
which 
provide 
distribution 
of 
natural 
gas 
and 
power, 
respectively, 
are 
required by law to provide non-discriminatory access to the 
distribution network. Prices are subject to the 
review and approval of RONI. Both 
entities operate under regulatory framework where 
allowed revenues 
are based 
primarily on 
the Regulated 
Asset Base 
(“RAB”) multiplied 
by the 
allowed regulatory 
WACC 
plus eligible operating expenditures and 
allowed depreciation in line with 
regulatory frameworks in other 
European countries. All key tariff 
parameters are set for a given regulatory 
period of five years, while the 
current regulatory period started in January 2023. 
Revenue from 
sales of 
electricity and 
gas are 
recognised when 
the electricity 
and gas 
is delivered 
to the 
customer. With respect to 
SSE, RONI 
regulates certain 
aspects of 
the SSE’s relationships 
with its 
customers 
including the pricing of electricity and services provided to certain customers of SSE. Prices 
of electricity 
and gas for 
households and 
small business are 
regulated by RONI. 
The price of 
electricity for the 
wholesale 
customers 
is 
not 
regulated. 
With 
respect 
to 
supply 
activities 
in 
the 
Czech 
Republic, 
prices 
for 
end-
consumers are not regulated. In reaction to the volatile 
commodity prices during 2022, both the Czech and 
Slovak Governments decided to set 
maximum prices of electricity and 
gas for certain customers for 
2023 
(further details are described in Regulatory risk, Note 31. (f)). 
EPET and 
the 
SSE 
also 
purchase and 
sell 
power, 
including 
sales in 
the 
wholesale market 
of 
electricity 
generated by 
the Group 
in its 
Heat Infra 
Business and 
purchases of 
electricity and 
natural gas 
to supply 
customers as part of 
the division’s 
supply activities. The majority 
of the Group’s 
trades are conducted on 
back-to-back basis. 
iii.
Gas storage 
The Gas storage segment is represented by 
NAFTA a.s., SPP 
Storage, s.r.o., POZAGAS a.s. 
and NAFTA 
Germany 
GmbH 
and 
its 
subsidiaries 
which 
store 
natural 
gas 
primarily 
under 
long-term 
contracts 
in 
underground storage facilities located in the 

                        Czech Republic, Slovakia and Germany
                      
. 
The Group 
stores natural 
gas in 
two locations in 
the 

                        Czech Republic
                      
 
and Slovakia and 
three locations in 
Germany. Additionally, NAFTA a.s. and POZAGAS a.s. sell 
a part of 
their storage capacity 
at the Austrian 

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
38 

            
                  Virtual Trading 
Point and they bear all entry-exit fees in relation to the access to the Austrian market. The 
storage capacities 
are utilised 
for injection, 
withdrawal and 
storage of 
natural gas 
according to 
seasonal 
needs to ensure the 
standards of security of 
supply based on the 
valid legislation and to 
utilise short-term 
market volatility of gas prices. Charges for storage 
are agreed upon the period of contracts. 
Fee for storage 
depends primarily 
on the 
booked capacity 
per year 
and annual 
price indexes, 
furthermore products 
with 
higher 
deliverability and 
flexibility are 
priced with 
premium. The 
short-term storage 
capacity is 
mainly 
sold at prices derived from spreads between summer and winter prices. 
iv.
Heat Infra 
The Heat Infra segment 
owns and operates 
three large-scale combined 
heat and power plants 
(CHPs) in the 
Czech 
Republic 
mainly 
operated 
in 
highly 
efficient 
co-generation 
mode 
and 
represented 
primarily 
by: 
Elektrárny 
Opatovice, a.s., 
United 
Energy, 
a.s. 
and 
Plzeňská 
teplárenská, a.s.. 
The heat 
generated in 
its 
CHPs is 
supplied mainly 
to retail 
customers through well 
maintained and 
robust district 
heating systems 
that the 
Group owns 
in most 
of the 
cases. Czech 
based heat 
supply is 
regulated in 
a way 
of cost 
plus a 
reasonable profit margin. 
The entities also 
represent major Czech 
power producers 
and important providers 
of grid balancing 
services for ČEPS, 
the Czech electricity 
transmission network operator. EP Sourcing, 
a.s. 
and EP Cargo a.s., as main suppliers of the above-mentioned entities, are also included 
in this segment. 
v.
Other 
The Other operations represents mainly three solar power plants 
and one wind farm in the Czech Republic 
and two solar power plants and a biogas facility in Slovakia. 
vi.
Holding entities 
The Holding 
entities mainly represent 
EP Infrastructure, a.s., 
EP Energy, 
a.s., Slovak 
Gas Holding 
B.V., 
EPH Gas Holding B.V., 
Seattle Holding B.V., 
SPP Infrastructure, a.s. and Czech Gas Holding Investment 
B.V. 
The segment 
profit therefore 
primarily represents 
dividends received 
from its 
subsidiaries, finance 
expense and results from acquisition accounting or disposals of subsidiaries 
and associates.

                

          

 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
39 

            
                  Profit or loss 
For the year ended 31 December 2022 
In millions of EUR 
Gas trans-
mission 
Gas and power 
distribution 
Gas storage 
Heat Infra 
Total segments 
Other 
Holding 
Inter-segment 
eliminations 
Consolidated 
financial 
information 
Revenues: Energy and related services 
342 
3,124 
458 
664 
4,588 
4 
- 
(698) 
3,894 
external revenues 
189 
3,021 
426 
257 
3,893 
1 
- 
- 
3,894 
of which: Gas 
189 
1,038 
426 
- 
1,653 
- 
- 
- 
1,653 
 
Electricity 
- 
1,983 
- 
109 
2,092 
1 
- 
- 
2,093 
 
Heat 
- 
- 
- 
148 
148 
- 
- 
- 
148 
inter-segment revenues 
153 
103 
32 
407 
695 
3 
- 
(698) 
- 
Revenues: Logistics and freight services 
- 
- 
- 
43 
43 
- 
- 
- 
43 
external revenues 
- 
- 
- 
43 
43 
- 
- 
- 
43 
inter-segment revenues 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Revenues: Other 
- 
20 
11 
29 
60 
8 
- 
- 
68 
external revenues 
- 
20 
11 
29 
60 
8 
- 
- 
68 
inter-segment revenues 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Gain (loss) from commodity and freight 
derivatives, net 
- 
(1) 
- 
- 
(1) 
- 
- 
- 
(1) 
Total revenues 
342 
3,143 
469 
736 
4,690 
12 
- 
(698) 
4,004 
Purchases and consumables: Energy and related 
services 
26 
(2,428) 
(19) 
(216) 
(2,637) 
(2) 
(1) 
662 
(1,978) 
external Purchases and consumables 
51 
(1,865) 
(18) 
(143) 
(1,975) 
(2) 
(1) 
- 
(1,978) 
inter-segment Purchases and consumables 
(25) 
(563) 
(1) 
(73) 
(662) 
- 
- 
662 
- 
Total Purchases and consumables 
26 
(2,428) 
(19) 
(216) 
(2,637) 
(2) 
(1) 
662 
(1,978) 
Services 
(9) 
(91) 
(37) 
(80) 
(217) 
(2) 
(7) 
38 
(188) 
Personnel expenses 
(29) 
(121) 
(36) 
(50) 
(236) 
(2) 
(5) 
- 
(243) 
Depreciation, amortisation and impairment 
(139) 
(229) 
(28) 
(60) 
(456) 
(2) 
(34) 
- 
(492) 
Emission rights, net 
- 
- 
(2) 
(190) 
(192) 
- 
- 
- 
(192) 
Operating work capitalized to fixed assets 
2 
23 
2 
2 
29 
- 
- 
- 
29 
Other operating income (expense), net 
(8) 
12 
2 
(4) 
2 
(1) 
6 
(2) 
5 
Profit (loss) from operations 
185 
309 
351 
138 
983 
3 
(41) 
- 
945 
Finance income 
69 
15 
2 
6 
92 
- 
*
634 
*
(625) 
101 
external finance revenues 
69 
3 
2 
2 
76 
- 
25 
- 
101 
inter-segment finance revenues 
- 
12 
- 
4 
16 
- 
*
609 
*
(625) 
- 
Impairment losses on financial instruments 
and other financial assets 
- 
- 
(1) 
- 
(1) 
- 
5 
- 
4 
Finance expense 
(31) 
(22) 
(4) 
(2) 
(59) 
(1) 
(83) 
47 
(96) 
Net finance income (expense) 
38 
(7) 
(3) 
4 
32 
(1) 
556 
(578) 
9 
Profit (loss) before income tax 
223 
302 
348 
142 
1,015 
2 
*
515 
*
(578) 
954 
Income tax expenses 
(55) 
(74) 
(85) 
(27) 
(241) 
(1) 
(11) 
- 
(253) 
Profit (loss) for the year 
168 
228 
263 
115 
774 
1 
*
504 
*
(578) 
701 
* 
EUR 579 million is attributable to intra-group dividends 
primarily recognised by Slovak Gas Holding B.V., Czech Gas Holding Investment B.V., SPP Infrastructure, a.s. and EP Energy, a.s. 
Other financial information: 
Underlying EBITDA
(1)
324 
538 
379 
198 
1,439 
5 
(7) 
- 
1,437 
(1) 
Underlying EBITDA represents profit (loss) for the year before income tax expenses, finance 
expense, finance income, profit (loss) from derivative financial instruments, 
share of profit of equity accounted investees, net of tax, gain (loss) 
on 
disposal of subsidiaries, special purpose entities, 
joint ventures and associates, depreciation of property, plant and equipment, amortisation of intangible 
assets, and negative goodwill and impairment 
of tangible and intangible assets.

                

          
 

 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
40 

            
                  For the year ended 31 December 2021 
In millions of EUR 
Gas trans-
mission 
Gas and power 
distribution 
Gas storage 
Heat Infra 
Total segments 
Other 
Holding 
Inter-segment 
eliminations 
Consolidated 
financial 
information 
Revenues: Energy and related services 
564 
2,075 
256 
389 
3,284 
5 
- 
(470) 
2,819 
external revenues 
335 
2,059 
224 
196 
2,814 
5 
- 
- 
2,819 
of which: Gas 
335 
845 
224 
- 
1,404 
- 
- 
- 
1,404 
 
Electricity 
- 
1,214 
- 
54 
1,268 
5 
- 
- 
1,273 
 
Heat 
- 
- 
- 
142 
142 
- 
- 
- 
142 
inter-segment revenues 
229 
16 
32 
193 
470 
- 
- 
(470) 
- 
Revenues: Logistics and freight services 
- 
- 
- 
29 
29 
- 
- 
- 
29 
external revenues 
- 
- 
- 
29 
29 
- 
- 
- 
29 
inter-segment revenues 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Revenues: Other 
- 
8 
- 
8 
16 
5 
- 
- 
21 
external revenues 
- 
8 
- 
8 
16 
5 
- 
- 
21 
inter-segment revenues 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Gain (loss) from commodity and freight 
derivatives, net 
- 
(59) 
- 
- 
(59) 
- 
- 
- 
(59) 
Total revenues 
564 
2,024 
256 
426 
3,270 
10 
- 
(470) 
2,810 
Purchases and consumables: Energy and related services 
(36) 
(1,332) 
(29) 
(115) 
(1,512) 
- 
(1) 
439 
(1,074) 
external Purchases and consumables 
(30) 
(911) 
(27) 
(105) 
(1,073) 
- 
(1) 
- 
(1,074) 
inter-segment Purchases and consumables 
(6) 
(421) 
(2) 
(10) 
(439) 
- 
- 
439 
- 
Total Purchases and consumables 
(36) 
(1,332) 
(29) 
(115) 
(1,512) 
- 
-
(1) 
-
439 
(1,074) 
Services 
(5) 
(75) 
(9) 
(51) 
(140) 
(2) 
(5) 
32 
(115) 
Personnel expenses 
(29) 
(111) 
(33) 
(44) 
(217) 
(2) 
(4) 
- 
(223) 
Depreciation, amortisation and impairment 
(116) 
(226) 
(29) 
(54) 
(425) 
(3) 
- 
- 
(428) 
Emission rights, net 
(2) 
(1) 
(1) 
(125) 
(129) 
- 
- 
- 
(129) 
Negative goodwill 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Operating work capitalized to fixed assets 
3 
21 
- 
2 
26 
- 
- 
- 
26 
Other operating income (expense), net 
(16) 
(5) 
(5) 
11 
(15) 
(2) 
- 
(1) 
(18) 
Profit (loss) from operations 
363 
295 
150 
50 
858 
1 
(10) 
- 
849 
Finance income 
16 
2 
2 
5 
25 
- 
*
669 
*
(627) 
67 
external finance revenues 
16 
- 
1 
4 
21 
- 
46 
- 
67 
inter-segment finance revenues 
- 
2 
1 
1 
4 
- 
*
623 
*
(627) 
- 
Impairment losses on financial instruments 
and other financial assets 
- 
(1) 
(2) 
- 
(3) 
(2) 
(4) 
(1) 
(10) 
Finance expense 
(31) 
(12) 
(5) 
(3) 
(51) 
(1) 
(68) 
21 
(99) 
Net finance income (expense) 
(15) 
(11) 
(5) 
2 
(29) 
(3) 
597 
(607) 
(42) 
Share of profit (loss) of equity accounted 
investees, net of tax 
- 
- 
- 
- 
- 
1 
- 
- 
1 
Gain (loss) on disposal of subsidiaries 
- 
- 
- 
- 
- 
- 
(1) 
- 
(1) 
Profit (loss) before income tax 
348 
284 
145 
52 
829 
(1) 
*
586 
*
(607) 
807 
Income tax expenses 
(86) 
(70) 
(34) 
(8) 
(198) 
- 
(7) 
- 
(205) 
Profit (loss) for the year 
262 
214 
111 
44 
631 
(1) 
*
579 
*
(607) 
602 
Other financial information: 
Underlying EBITDA
(1)
479 
521 
179 
104 
1,283 
4 
(10) 
- 
1,277 
(1) 
Underlying EBITDA represents profit (loss) for the year before income tax expenses, finance 
expense, finance income, profit (loss) from derivative financial 
instruments, share of profit of equity accounted investees, net of tax, 
gain (loss) on 
disposal of subsidiaries, special purpose entities, 
joint ventures and associates, depreciation of property, plant and equipment, amortisation 
of intangible assets, and negative goodwill 
and impairment of tangible and intangible assets.

                

          
 

 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
41 

            
                  Underlying EBITDA reconciliation to the closest IFRS measure 
The underlying EBITDA reconciles to the profit as follows:

                

          

            
                  For the year ended 31 December 2022 
In millions of EUR 
Gas trans-
mission 
Gas and power 
distribution 
Gas storage 
Heat Infra 
Total segments 
Other 
Holding 
Inter-segment 
eliminations 
Consolidated 
financial 
information 
Underlying EBITDA 
324 
538 
379 
198 
1,439 
5 
(7) 
- 
1,437 
Depreciation, amortisations and impairment 
(139) 
(229) 
(28) 
(60) 
(456) 
(2) 
(34) 
- 
(492) 
Finance income 
69 
15 
2 
6 
92 
- 
634 
(625) 
101 
Impairment losses on financial instruments 
and other financial assets 
- 
- 
(1) 
- 
(1) 
- 
5 
- 
4 
Finance expense 
(31) 
(22) 
(4) 
(2) 
(59) 
(1) 
(83) 
47 
(96) 
Income tax 
(55) 
(74) 
(85) 
(27) 
(241) 
(1) 
(11) 
- 
(253) 
Profit for the year 
168 
228 
263 
115 
774 
1 
504 
(578) 
701 
For the year ended 31 December 2021 
In millions of EUR 
Gas trans-
mission 
Gas and power 
distribution 
Gas storage 
Heat Infra 
Total segments 
Other 
Holding 
Inter-segment 
eliminations 
Consolidated 
financial 
information 
Underlying EBITDA 
479 
521 
179 
104 
1,283 
4 
(10) 
- 
1,277 
Depreciation, amortisations and impairment 
(116) 
(226) 
(29) 
(54) 
(425) 
(3) 
- 
- 
(428) 
Finance income 
16 
2 
2 
5 
25 
- 
669 
(627) 
67 
Impairment losses on financial instruments 
and other financial assets 
- 
(1) 
(2) 
- 
(3) 
(2) 
(4) 
(1) 
(10) 
Finance expense 
(31) 
(12) 
(5) 
(3) 
(51) 
(1) 
(68) 
21 
(99) 
Share of profit (loss) of equity accounted 
investees, net of tax 
- 
- 
- 
- 
- 
1 
- 
- 
1 
Gain (loss) on disposal of subsidiaries 
- 
- 
- 
- 
- 
- 
(1) 
- 
(1) 
Income tax 
(86) 
(70) 
(34) 
(8) 
(198) 
- 
(7) 
- 
(205) 
Profit for the year 
262 
214 
111 
44 
631 
(1) 
579 
(607) 
602

                

          

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
42 

            
                  Segment assets and liabilities 
For the year ended 31 December 2022 
In millions of EUR 
Gas trans-
mission 
Gas and 
power 
distribution 
Gas storage 
Heat Infra 
Total 
reportable 
segments 
Other 
Holding 
Inter- 
segment 
eliminations 
Consolidated 
financial 
information 
Reportable segment assets 
4,431 
6,187 
1,063 
1,095 
12,776 
26 
1,739 
(1,574) 
12,967 
Reportable segment liabilities 
(2,407) 
(2,829) 
(430) 
(483) 
(6,149) 
(12) 
(3,805) 
1,574 
(8,392) 
Additions to tangible and intangible assets
(1)
37 
117 
23 
234 
411 
1 
- 
- 
412 
Acquisition of property, plant and equipment, 
investment property and intangible assets (excl. 
emission rights, right-of-use assets and goodwill) 
32 
90 
10 
33 
165 
- 
- 
- 
165 
(1) 
This balance includes additions to right of use assets, emission rights and goodwill 
For the year ended 31 December 2021 
In millions of EUR 
Gas trans-
mission 
Gas and 
power 
distribution
(2)
Gas storage 
Heat Infra 
Total 
reportable 
segments 
Other 
Holding 
Inter-
segment 
eliminations 
Consolidated 
financial 
information 
Reportable segment assets 
4,360 
6,129 
861 
873 
12,223 
26 
1,115 
(1,744) 
11,620 
Reportable segment liabilities 
(2,647) 
(2,317) 
(402) 
(383) 
(5,749) 
(13) 
(3,776) 
1,744 
(7,794) 
Additions to tangible and intangible assets
(1)
34 
104 
12 
150 
300 
- 
- 
- 
300 
Acquisition of property, plant and equipment, 
investment property and intangible assets (excl. 
emission rights and goodwill) 
25 
83 
9 
34 
151 
- 
- 
- 
151 
(1) 
This balance includes additions to right of use assets, emission rights and goodwill

                

          
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
43 

            
                  
                        Information about geographical areas
In presenting 
information on 
the basis 
of geography, segment 
revenue is 
based on 
the geographical 
location 
of delivery of goods and services and segment assets are based on 
the geographical location of the assets.

                      

                

          

            
                  
                        As of the year ended 31 December 2022 
In millions of EUR 
Czech 
Republic 
Slovakia 
Germany 
Total 
Property, plant and equipment 
583 
8,819 
160 
9,562 
Intangible assets and goodwill 
287 
40 
3 
330 
Total 
870 
8,859 
163 
9,892 
For the year ended 31 December 2022 
In millions of EUR 
Czech 
Republic 
Slovakia 
Germany 
Other* 
Total 
Revenues: Gas 
571 
948 
59 
75 
1,653 
Revenues: Electricity 
839 
1,254 
- 
- 
2,093 
Revenues: Heat 
148 
- 
- 
- 
148 
Revenues: Logistics and freight 
services 
27 
2 
5 
9 
43 
Revenues: Other 
39 
21 
6 
2 
68 
Gain (loss) from commodity and 
freight derivatives, net 
(1) 
- 
- 
- 
(1) 
Total 
1,623 
2,225 
70 
86 
4,004 
* 
The geographical area “Other” comprises income items primarily from Switzerland, Luxembourg, France and 
United Kingdom. 
As of the year ended 31 December 2021 
In millions of EUR 
Czech 
Republic 
Slovakia 
Germany 
Total 
Property, plant and equipment 
591 
9,051 
167 
9,809 
Intangible assets and goodwill 
256 
35 
2 
293 
Total 
847 
9,086 
169 
10,102 
For the year ended 31 December 2021 
In millions of EUR 
Czech 
Republic 
Slovakia 
Germany 
Other* 
Total 
Revenues: Gas 
370 
893 
77 
64 
1,404 
Revenues: Electricity 
457 
798 
- 
18 
1,273 
Revenues: Heat 
142 
- 
- 
- 
142 
Revenues: Logistics and freight 
services 
17 
3 
- 
9 
29 
Revenues: Other 
12 
9 
- 
- 
21 
Gain (loss) from commodity and 
freight derivatives, net 
(59) 
- 
- 
- 
(59) 
Total 
939 
1,703 
77 
91 
2,810 
* 
The geographical area “Other” comprises income items primarily from Switzerland, Luxembourg and France.

                      

                

          
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
44 

            
                  6. 
Acquisitions and disposals of subsidiaries, joint-ventures 
and associates 
As described in the Note 
1 - Background, the 
Company was established on 
6 December 2013 by 
the parent 
company Energetický a průmyslový holding, a.s. 
On 
24 January 
2014 EPIF 
acquired from 
EPH 100% 
shares in 
EP 
Energy, 
a.s. (“EPE”) 
for 
EUR 1,500 
million, on 23 
March 2016 acquired 
100% share in 
EPH Gas Holding 
B.V. 
(“EPH Gas”) for 
EUR 3,235 
million and on 30 March 2016 acquired 100% share in Czech Gas Holding Investment B.V. (“CGHI”) for 
EUR 356 
million. For 
the purpose 
of preparation 
of these 
consolidated financial 
statements, the 
entities 
acquired 
as 
part 
of 
acquisition 
of 
shares 
in 
EPE, 
CGHI 
and 
EPH 
Gas 
are 
presented 
using 
one 
of 
the 
following two methods: 
1.
If the acquired entities 
were previously acquired by the 
parent company Energetický a 
průmyslový 
holding, a.s. 
under the 
scope of 
IFRS 3, 
the Company 
presents the 
acquired entities 
in its 
consolidated 
financial statements 
under the 
scope of 
IFRS 3 
from the 
original date 
of acquisition 
by the 
parent 
company 
Energetický a 
průmyslový holding, 
a.s. 
From 
the 
view of 
the 
EPIF Group 
consolidated 
financial 
statements, 
these 
transactions 
are 
reflected 
as 
if 
carried 
out 
directly 
by 
the 
Company, 
including all goodwill or negative goodwill impacts. The consideration paid or payable by the EPIF 
Group is presented as a decrease of Other capital reserves in Equity. 
2.
If the acquired entities 
were previously acquired by the 
parent company Energetický a 
průmyslový 
holding, a.s. in 
a transaction under 
common control, the 
Company presents the 
acquired entities in 
its 
consolidated 
financial 
statements 
as 
common 
control 
acquisition 
from 
the 
original 
date 
of 
acquisition by the 
parent company Energetický 
a průmyslový holding, 
a.s. The difference 
between 
the value 
contributed to 
the equity 
of the 
Group as 
determined by 
the independent 
valuation specialist 
and the net 
book value 
of the 
contributed entity 
as at the 
date when contributed 
to EPH 
was presented 
as a pricing difference in Other capital reserves in Equity. 
(a)
Acquisitions and step-acquisitions 
i.
31 December 2022 
On 28 
April 2022, the 
Group through Stredoslovenská 
energetika Holding, a.s. 
(“SSEH”) acquired 51% 
interest 
in 
PW 
geoenergy 
a.s., 
which 
is 
a 
project 
company 
pursuing 
a 
geothermal 
project 
in 
Central 
Slovakia. The transaction 
resulted in a 
derecognition of non-controlling interest 
in the amount 
of EUR 2 
million. 
ii.
31 December 2021 
On 
1 
July 
2021, 
the 
Group through 
EP 
ENERGY TRADING, 
a.s. 
completed 
an 
acquisition of 
100% 
shares in 
Dobrá energie 
s.r.o. 
(“DE”) in 
exchange for a 
cash consideration 
of EUR 
22 million. 
DE is 
a 
Czech based entity that primarily owns a supply portfolio of natural gas and 
power retail customers. 
(b)
Effect of acquisitions 
i.
31 December 2022 
There were no significant acquisitions or step-acquisitions in 2022. 
ii.
31 December 2021 
The fair value 
of the 
consideration transferred 
and the amounts 
recognised for 
assets acquired 
and liabilities 
assumed as at the acquisition date of Dobrá Energie s.r.o. are provided in the following table.

                

          

 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
45 

            
                  In millions of EUR 
Carrying amount 
Fair value 
adjustments 
Total 
Intangible assets 
- 
27 
27 
Trade receivables and other assets 
17 
- 
17 
Cash and cash equivalents 
4 
- 
4 
Deferred tax liabilities 
- 
(5) 
(5) 
Contract liabilities 
(4) 
- 
(4) 
Trade payables and other liabilities 
(17) 
- 
(17) 
Net identifiable assets and liabilities 
- 
22 
22 
Cost of acquisition 
Consideration paid, satisfied in cash (A) 
22 
Total consideration transferred 
22 
Less: Cash acquired (B) 
4 
Net cash inflow (outflow) (C) = (B-A) 
(18)

                

          

            
                  ii. 
Rationale for acquisitions 
The Group’s strategic rationale for realised acquisitions comprised several factors, including: 
●
The subsidiaries’ businesses are complementary to Group’s portfolio;
●
Potential for synergic effects;
●
The subsidiaries have an advantageous position within the market;
As further expansion in energy sectors of the countries in which the Group currently has operations is one 
of 
the 
strategic 
aims, the 
Group 
is 
investing 
both in 
energy 
companies and 
in companies 
supplying the 
energy industry. The Group’s current aim is to further strengthen its leading position in the energy market. 
The Group’s view is that there is long-term strategic value in these investments due to the development of 
the market, which has been already confirmed by DE´s performance 
in 2022.

                

          
 

            
                  (c) 
Business combinations – acquisition accounting 2022 and 2021 
The 
acquiree’s 
identifiable assets, 
liabilities 
and 
contingent 
liabilities 
were 
recognised 
and 
measured 
at 
their fair values at the 
acquisition date by the Group 
(except for acquisitions under 
common control, which 
are carried 
in net 
book values); 
in line 
with the 
above, the 
established fair 
values were 
subsequently reported 
in 
the 
financial statements 
of 
the 
Company. 
Allocation of 
the total 
purchase price 
among the 
net 
assets 
acquired 
for 
financial 
statement 
reporting 
purposes 
was 
performed 
with 
the 
support 
of 
professional 
advisors. 
The valuation 
analysis is 
based on 
historical and 
prospective information 
prevailing as 
at the 
date of 
the 
business 
combination 
(which 
also 
involves 
certain 
estimates 
and 
approximations 
such 
as 
business 
plan 
forecasts, 
useful 
life 
of 
assets, 
and 
the 
weighted 
average 
cost 
of 
capital 
components). 
Any 
prospective 
information that may impact 
the future value of 
the acquired assets 
is based on management’s expectations 
of the competitive and economic environments that will prevail at 
the time. 
The results 
of the 
valuation analyses 
are also 
used for 
determining the 
amortisation and 
depreciation periods 
of the values allocated to specific intangible and tangible fixed assets. 
Purchase price allocation was performed for all business combinations 
within the scope of IFRS 3. 
Fair 
value 
adjustments 
resulting 
from 
business 
combination 
in 
the 
year 
ended 
31 
December 
2021 
are 
presented in the following table: 

                

          

 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
46 

            
                  In millions of EUR 
Intangible assets 
Deferred tax 
liability 
Total net effect 
on financial 
position 
Subsidiary 
Dobrá Energie s.r.o. 
27 
(5) 
22 
Total 
27 
(5) 
22 
The following 
table provides 
information on 
revenues and 
profit or 
loss of 
acquirees 
that have 
been included 
in the consolidated statement of comprehensive income for the 
reporting period. 
In millions of EUR 
2021 Total 
Revenue of the acquirees recognised since the acquisition date (subsidiaries) 
25 
Profit (loss) of the acquirees recognised since the acquisition date 
(subsidiaries) 
2 
The following table 
provides information on 
the estimated revenues 
and profit or 
loss that would 
have been 
included 
in 
the 
consolidated statement 
of 
comprehensive income, 
if 
the 
acquisition had 
occurred at 
the 
beginning of the 
reporting period (i.e. 
as at 1 
January 2021); this 
financial information was 
derived from 
the statutory or IFRS financial statements of the acquired entities.
In millions of EUR 
2021 
Total 
Revenue of the acquirees recognised in the year ended 31 December 
2021* 
48 
Profit (loss) of the acquires recognised in the year ended 31 December 2021* 
3 
* 
Before intercompany elimination; based on local statutory financial information

                

          
 

            
                  (d
) 
Disposal of investments 
i.
31 December 2022 
On 18 
January 2022, 
the Group 
disposed 100% 
interest in 
Industrial Park 
Opatovice s.r.o. 
without any 
significant impact on the Group’s financial statements.
On 
14 
February 
2022, 
the 
Group 
disposed 
100% 
interest 
in 
Greeninvest 
Energy, 
a.s. 
without 
any 
significant impact on the Group’s financial statements.
On 
22 
February 
2022, 
Nafta 
Exploration 
d.o.o. 
was 
dissolved 
from 
Commercial 
Register 
and 
deconsolidated without any significant impact on the Group’s financial statements.
On 20 
December 2022, 
the Group 
disposed 100% 
interest in 
Mirtheaven a.s. 
without any 
significant impact 
on the Group’s financial statements.
ii.
31 December 2021 
During the year 2021 the Group disposed of its investments in:

                

          

            
                  In millions of EUR 
Date of 
disposal 
Equity interest 
disposed 
Equity interest 
after disposal 
% 
% 
Subsidiaries disposed 
Claymore Equity, s.r.o. 
v likvidácii 
31/3/2021 
100 
- 
PT Holding Investment B.V. 
30/9/2021 
100 
- 
Střelničná reality s.r.o. 
16/12/2021 
100 
- 
Malešice Reality s.r.o. 
16/12/2021 
100 
- 
Zálesí Reality s.r.o. 
16/12/2021 
100 
- 
EPRE Reality s.r.o. 
16/12/2021 
100 
- 
Power Reality s.r.o. 
16/12/2021 
100 
-

                

          

 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
47 

            
                  In April 2021, a liquidation process 
of Claymore Equity, s.r.o. 
v likvidácii, was completed and entity was 
dissolved from the 
Commercial Register 
and deconsolidated without 
any significant impact 
on the Group’s 
financial statements.
On 30 September 2021, PT Holding 
Investments B.V. 
was deconsolidated without any significant impact 
on the Group’s financial statements. The company is intendeds to be liquidated. 
On 16 December 2021, the 
Group disposed 100% in Střelničná 
reality s.r.o., Malešice Reality s.r.o., Zálesí 
Reality s.r.o., EPRE Reality s.r.o. and Power Reality s.r.o. 
The effect of disposal is provided in the following table below

                

          

            
                  In millions of EUR 
Net assets sold in 2021 
Property, plant and equipment 
(38) 
Trade receivables and other assets 
(2) 
Cash and cash equivalents 
(2) 
Deferred tax liabilities 
4 
Loans and borrowings 
1 
Trade payables and other liabilities 
2 
Net identifiable assets and liabilities 
(35) 
Translation difference recycled to OCI 
7 
Net assets value disposed 
(28) 
Consideration received, satisfied in cash 
27 
Cash and cash equivalents disposed of 
(2) 
Net cash inflows 
25 
Gain (loss) on disposal 
(1)

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
48 

            
                  
                        7. 
Revenues 
In millions of EUR 
2022 
2021 
Revenues: Energy and related services 
 
Electricity 
2,093 
1,273 
 
Gas 
1,653 
1,404 
 
Heat 
148 
142 
Total Energy 
and related services 
3,894 
2,819 
Revenues: Logistics and freight services 
43 
29 
Revenues: Other 
68 
21 
Total revenues 
from customers 
4,005 
2,869 
Gain (loss) from commodity derivatives for trading with electricity and 
gas, net 
(1) 
(59) 
Total 
4,004 
2,810

                      

                

          

            
                  
                        For disaggregation of 
revenue based on 
type of service 
and based on 
geographical area refer 
to Note 
5 – 
Operating segments. 
Revenues Energy 
and related 
services: Gas 
consists primarily 
of revenue 
from gas 
transmission of 
EUR 
342 million 
(2021: EUR 
563 million), 
from distribution 
of gas 
of EUR 
427 million 
(2021: EUR 
437 million) 
and gas storage of EUR 426 million (2021: EUR 224 million). 
Revenues Energy 
and related 
services: Electricity 
consists primarily 
of sale 
of electricity 
of EUR 
1,943 
million (2021: EUR 
1,109 million). The 
amount of 
EUR 142 million 
(2021: EUR 121 
million) relates to 
distribution of electricity. 
Other revenues are represented mainly by revenues of gypsum, revenues from 
transportation and disposal 
costs, sewage sludge incineration and restoration services to third parties. 
In 2022 and 2021 
no revenue was recognised 
from performance obligations 
satisfied (or partially 
satisfied) 
in previous periods. 
Total 
revenues less 
total 
purchase and 
consumables are 
presented in 
line 
“Subtotal” in 
the 
statement 
of 
comprehensive income. 
Contract 
assets 
and 
liabilities 
primarily 
relate 
to 
not 
invoiced 
part 
of 
fulfilled 
performance 
obligation, 
received payments 
for services 
and goods 
where control 
over the 
assets was 
not transferred 
to customer 
and 
deferred 
income 
related 
to 
grid 
connection 
fees 
collected 
and 
free-of-charge 
non-current 
assets 
transferred from customers. 
Several 
items 
of 
gas 
equipment 
(typically 
connection 
terminals) 
were 
obtained 
“free 
of 
charge” 
from 
developers 
and 
from 
local 
authorities 
(this 
does 
not 
represent 
a 
grant, 
because 
in 
such 
cases 
the 
local 
authorities act in the role of a 
developer). This equipment was recorded as property, 
plant, and equipment 
at 
the 
costs 
incurred 
by 
the 
developers 
and 
local 
authorities 
with 
a 
corresponding 
amount 
recorded 
as 
contract liability as receipt of the free 
of charge property is related to obligation to 
provide services to the 
customers in the future 
periods. These costs 
approximate the fair 
value of the obtained 
assets. This contract 
liability 
is 
released 
in 
the 
statement 
of 
comprehensive income 
on 
a 
straight-line basis 
in 
the 
amount of 
depreciation charges of non-current tangible assets acquired free of charge.

                      

                

          

            
                  
                        In millions of EUR 
31 December 2022 
31 December 2021 
Contract assets 
101 
36 
 
Current 
101 
36 
 
Non-Current 
- 
- 
Contract liabilities 
171 
156 

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
49 

            
                  
                         
Current 
63 
79 
 
Non-Current 
108 
77

                      

                

          

            
                  
                        The whole 
amount of 
EUR 79 
million recognised 
in current 
contract liabilities 
at the 
beginning of 
the period 
has been recognised as revenue during the year 2022.

                      

                

          
 

            
                  
                        8. 
Purchases and consumables 
In millions of EUR 
2022 
2021 
Purchases and consumables 
 
Purchase cost of sold electricity 
1,452 
745 
 
Purchase cost of sold gas and other energy products 
377 
143 
 
Other purchase costs 
80 
31 
 
Consumption of fuel and other material 
49 
136 
 
Consumption of energy 
13 
18 
 
Changes in WIP, 
semi-finished products and finished goods 
4 
(2) 
 
Other purchases 
3 
3 
Total purchases 
and consumables 
1,978 
1,074

                      

                

          

            
                  
                        Purchases 
and 
consumables 
presented 
in 
the 
above 
table 
contains 
only 
cost 
of 
purchased 
energy 
and 
purchased materials consumed in producing energy output and resale 
of energy products, while it does not 
contain 
directly 
attributable 
overhead 
(particularly 
personnel 
expenses, 
depreciation 
and 
amortisation, 
repairs and maintenance, emission rights, taxes and charges etc.).

                      

                

          

            
                  9. 
Services 
In millions of EUR 
2022 
2021 
Repairs and maintenance 
42 
23 
Transport expenses 
30 
19 
Outsourcing and other administration fees 
25 
15 
Consulting expenses 
15 
13 
Rent expenses 
14 
11 
Network fees 
13 
1 
Information technologies costs 
12 
11 
Industrial waste 
8 
- 
Insurance expenses 
3 
3 
Advertising expenses 
4 
3 
Communication expenses 
1 
1 
Training, courses, conferences 
1 
1 
Security services 
1 
1 
Other 
19 
13 
Total 
188 
115

                

          

            
                  
                        Fees payable to statutory auditors 
In millions of EUR 
2022 
2021 
Statutory audits 
1 
1 
Services in addition to the Statutory audit 
- 
- 
Total
1 
1 
Fees payable to statutory auditors include 
expenses recorded in 100% amount by all 
subsidiaries and also 
associates and joint-ventures 
consolidated using the 
equity method. Statutory 
audits include fees 
payable 
for statutory audits of financial statements. Services 
in addition to the Statutory audit include 
primarily the 
following services: 
●
Review of the condensed interim consolidated financial statements; 

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
50 

            
                  
                        ●
Assistance with the compilation of the Sustainability Report; 
●
Expert opinion on R&D allowance.

                      

                

          

            
                  
                        
                              10. 
Personnel expenses 
In millions of EUR 
2022 
2021 
Wages and salaries 
172 
159 
Compulsory social security contributions 
58 
54 
Other social expenses 
13 
10 
Total 
243 
223

                            

                      

                

          

            
                  
                        The average 
number of 
employees during 
2022 was 
5,837 (2021: 
5,799), of 
which 123 
were executives 
(2021: 122).

                      

                

          

            
                  
                        11. 
Emission rights 
In millions of EUR 
2022 
2021 
Profit from sale of emission rights for trading 
- 
(1) 
Deferred income (grant) released to profit and loss 
12 
11 
Creation and release of provision for emission rights 
(204) 
(139) 
Use of provision for emission rights 
146 
68 
Consumption of emission rights 
(146) 
(68) 
Total 
(192) 
(129)

                      

                

          

            
                  
                        The 
increase of 
emission rights 
cost is 
caused 
primarily by 
the 
increase of 
average price
1
 
of 
1 
piece of 
emission allowance 
from 61.16 
EUR/piece in 
2021 to 
85.17 EUR/piece 
in 2022, 
which was 
to a 
certain 
extent limited by the fact that the Group policy is to hedge a portion of emission 
rights cost in advance.
8
 
The 
Ministries 
of 
the 
Environment 
of 
the 
Czech 
Republic and 
Slovakia 
set 
a 
limit 
on 
the 
amount 
of 
a 
pollutant 
that 
can 
be 
emitted. 
Companies 
are 
granted 
emission 
allowances 
and 
are 
required 
to 
hold 
an 
equivalent number of allowances 
which represent the 
right to emit a specific 
amount of pollutant. The 
total 
amount of allowances and credits cannot exceed the cap, limiting total emissions to that level. Companies 
that need to increase their emission 
allowance must buy credits from those who 
pollute less or from other 
market participants. The transfer of allowances is referred to as a 
trade. 
The 
companies 
that 
participate 
in 
the 
emission 
rights 
programme 
are 
United 
Energy, 
a.s., 
Plzeňská 
teplárenská, a.s., 
Elektrárny Opatovice, 
a.s., NAFTA 
a.s., POZAGAS 
a.s., SPP 
Storage, s.r.o. 
, 
eustream, 
a.s. and NAFTA Germany GmbH.

                      

                

          
 
8

            The average prices are derived from the European Energy 
Exchange market

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
51 

            
                  
                        
                              
                                    
                                          12. 
Other operating income (expense), net 
In millions of EUR 
2022 
2021 
Consulting fees 
14 
6 
Compensation from insurance and other companies 
8 
3 
Rental income 
7 
8 
Property acquired free-of-charge and fees from customers 
5 
7 
Contractual penalties 
1 
4 
Profit from sales of material 
1 
2 
Other 
12 
16 
Other operating income 
48 
46 
Office equipment and other material 
(17) 
(16) 
Taxes and charges 
(7) 
(5) 
Consulting expenses 
(3) 
(1) 
Gifts and sponsorship 
(3) 
(1) 
Impairment losses 
(3) 
(13) 
Of which relates to: 
Trade receivables and other assets 
(2) 
(12) 
 
Inventories 
(1) 
(1) 
Shortages and damages 
(2) 
(1) 
Loss from receivables written-off 
(1) 
(2) 
Loss on disposal of tangible and intangible assets 
- 
(5) 
Other administration fees 
- 
(10) 
Creation, reversal of provision 
4 
- 
Other 
(11) 
(10) 
Other operating expense 
(43) 
(64) 
Other operating income (expense), net 
5 
(18)

                                        

                                  

                            

                      

                

          

            
                  
                        
                              No 
material 
research 
and 
development 
expenses 
were 
recognised 
in 
profit 
and 
loss 
for 
the 
year 
ended 
31 December 2022 and 31 December 2021.

                            

                      

                

          

            
                  
                        
                              
                                    
                                          
                                                
                                                      
                                                            
                                                                  
                                                                        
                                                                              
                                                                                    13. 
Finance income and expense, profit (loss) from 
financial instruments 
Recognised in profit or loss 
In millions of EUR 
2022 
2021 
Interest income 
6 
3 
Dividend income 
1 
2 
Profit from trading derivatives 
103 
27 
Profit (loss) from hedging derivatives 
(1) 
1 
Profit (loss) from sale of financial assets 
(5) 
- 
Net foreign exchange profit (loss) 
(3) 
34 
Finance income 
101 
67 
Impairment losses on financial assets 
4 
(8) 
Impairment losses from interest in subsidiaries 
- 
(2) 
Impairment losses on financial instruments and other financial assets 
4 
(10) 
Interest expense 
(90) 
(92) 
Interest expense from unwind of provision discounting 
(1) 
(2) 
Fees and commissions expense for other services 
(5) 
(5) 
Finance expense 
(96) 
(99) 

                                                                                  

                                                                            

                                                                      

                                                                

                                                          

                                                    

                                              

                                        

                                  

                            

                      

                

          

 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
52 

                                                                                    Net finance income (expense) recognised in profit or loss 
for continuing operations 
9 
(42) 
(1)
 
While all derivatives are for the risk management purposes, a portion of them does not meet accounting criteria for 
recognition as hedging instruments under IFRS 9 as further described under Note 3f

                        14. 
Income tax expenses 
Income taxes recognized in profit or loss 
In millions of EUR 
2022 
2021 
Current taxes: 
Current year 
(310) 
(250) 
Adjustment for prior periods 
- 
1 
Total current 
taxes 
(310) 
(249) 
Deferred taxes: 
Origination and reversal of temporary differences 
57 
44 
Change in tax rate 
- 
- 
Total income 
taxes (expense) benefit recognised in profit or loss for 
continuing operations 
(253) 
(205) 
(1)
 
For details refer to Note 17 – Deferred tax assets and liabilities 
(1)
 
For details refer to Note 17 – Deferred tax assets and liabilities

                              Balance of current 
income tax liability 
in amount of 
EUR 125 million 
(2021: EUR 35 
million) is mainly 
represented by NAFTA a.s. of 
EUR 40 million (2021: EUR 0 million), Elektrárny Opatovice, a.s. of EUR 
11 
million 
(2021: 
EUR 
0 
million), 
SPP 
– 
distribúcia, 
a.s 
of 
EUR 
14 
million 
(2021: 
EUR 
13 
million), 
Stredoslovenská distribučná, a.s. of EUR 
12 million (2021: EUR 0 
million), EP Infrastructure, a.s. of EUR 
9 million (2021: EUR 0 million), NAFTA Germany GmbH of EUR 6 million (2021: EUR 11 million) and 
EP ENERGY TRADING, a.s. of EUR 8 million (2021: EUR 1 million). 
Deferred taxes are calculated using currently enacted tax rates expected to apply when the asset is realised 
or the liability settled. According to 
Czech legislation the corporate income tax rate is 
19% for fiscal year 
2022 (19% for 
2021). The Slovak 
corporate income tax 
rate is 
21% for fiscal 
year 2022 (21% 
for 2021). 
The German 
federal income tax 
rate is 26.95% 
for fiscal year 
2022 (27.08% 
for 2021). Current 
year income 
tax line includes also special sector tax effective in Slovakia.

                        Income tax recognised in other comprehensive income 
In millions of EUR 
2022 
Gross 
Income tax 
Net of 
income tax 
Items that are not reclassified subsequently to profit or loss 
Fair value reserve included in other comprehensive income
(1)
6 
(1) 
5 
Items that are or may be reclassified subsequently to profit or loss 
Foreign currency translation differences for foreign operations 
19 
- 
19 
Effective portion of changes in fair value of cash-flow hedges
(1)
135 
(31) 
104 
Total 
160 
(32) 
128 
(1) 
Deferred tax recognized in other comprehensive 
income of equity accounted investees is not shown in the table 
as it is not relevant to the financial statements of the Group. 
In millions of EUR 
2021

 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
53 

            
                  
                        Items that are or may be reclassified subsequently to profit or loss 
Foreign currency translation differences for foreign operations 
(207) 
- 
(207) 
Foreign currency translation differences from presentation currency 
205 
- 
205 
Effective portion of changes in fair value of cash-flow hedges
(1)
(515) 
107 
(408) 
Total 
(517) 
107 
(410) 
(1) 
Deferred tax recognized in other comprehensive 
income of equity accounted investees is not shown in the table 
as it is not relevant to the financial statements of the Group. 
The foreign currency translation differences related to non-controlling interest are 
presented under 
other comprehensive income attributable to non-controlling interest.

                      

                

          
 

            
                  
                        Reconciliation of the effective tax rate 
In millions of EUR 
2022 
2021 
% 
% 
Profit before tax 
954 
807 
Income tax using the Company’s domestic rate (19%) 
19.00% 
181 
19.00% 
152 
Effect of tax rates in foreign jurisdictions 
1.68% 
16 
1.88% 
15 
Non-deductible expenses
(1)
2.10% 
20 
2.25% 
18 
Non-taxable income 
(0.63%) 
(6) 
(0.50%) 
(4) 
Recognition of previously unrecognized tax losses 
(0.42%) 
(4) 
(0.63%) 
(5) 
Current year losses for which no deferred tax asset was recognized 
0.52% 
5 
0.38% 
3 
Change in temporary differences for which no deferred tax asset is 
recorded 
(0.10%) 
(1) 
(0.13%) 
(1) 
Regulated industry tax
(2)
4.40% 
42 
3.50% 
28 
Withholding tax 
- 
- 
(0.13%) 
(1) 
Income taxes recognised in profit or loss for continuing 
operations 
26.55% 
253 
25.62% 
205 
(1) 
The basis consists mainly of non-deductible interest expense of EUR 32 million refers to debentures and other fix 
interest bearing securities recorded by EP Infrastructure, 
a.s., further of provisions made of EUR 3 million and creation of 
impairment of goodwill of EUR 34 million by Elektrárny Opatovice, a.s. . 
(2) 
This item relates to special industry tax applied in Slovakia. The balance consists mainly of amount recognized by 
eustream, a.s. of EUR 11 
million (2021: EUR 13 million), SPP - distribúcia, a.s. of EUR 11 million (2021: EUR 8 million), 
NAFTA a.s. of EUR 15 million (2021: EUR 3 million), Stredoslovenská distribučná, a.s. of EUR 2 million (2021: EUR 3 
million) and POZAGAS a.s. of EUR 3 million (2021: EUR 1 million).

                      

                

          

 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
54 

            
                  
                        
                              15. 
Property, 
plant and equipment 
In millions of EUR 
Land and 
buildings 
Gas 
transmissio
n pipelines 
- fair value 
model 
Gas 
distribution 
pipelines - 
fair value 
model 
Gas 
pipelines - 
cost model 
Technical 
equipment, 
plant and 
machinery
(1)
Other 
equipment, 
fixtures and 
fittings 
Under 
construction 
Total 
Cost or revaluation 
Level 3 
Level 3 
Balance at 1 January 2022 
2,060 
3,803 
3,923 
12 
2,020 
12 
198 
12,028 
Effects of movements in foreign exchange 
16 
- 
- 
- 
20 
- 
2 
38 
Additions 
38 
22 
16 
- 
42 
- 
80 
198 
Disposals 
(6) 
(5) 
(7) 
- 
(22) 
- 
(2) 
(42) 
Transfers 
44 
102 
- 
(12) 
41 
4 
(179) 
- 
Change in provision recorded in property, plant and equipment 
(10) 
- 
- 
- 
- 
- 
- 
(10) 
Balance at 31 December 2022 
2,142 
3,922 
3,932 
- 
2,101 
16 
99 
12,212 
Depreciation and impairment losses 
Balance at 1 January 2022 
(722) 
(215) 
(321) 
(1) 
(952) 
(2) 
(6) 
(2,219) 
Effects of movements in foreign exchange 
(6) 
- 
- 
- 
(9) 
- 
(2) 
(17) 
Depreciation charge for the year 
(85) 
(87) 
(143) 
- 
(138) 
(1) 
- 
(454) 
Disposals 
5 
5 
2 
- 
22 
- 
- 
34 
Impairment losses recognized in profit or loss 
6 
- 
- 
- 
1 
- 
(1) 
6 
Transfer 
(1) 
2 
(2) 
1 
- 
- 
- 
- 
Balance at 31 December 2022 
(803) 
(295) 
(464) 
- 
(1,076) 
(3) 
(9) 
(2,650) 
Carrying amounts 
At 1 January 2022 
1,338 
3,588 
3,602 
11 
1,068 
10 
192 
9,809 
At 31 December 2022 
1,339 
3,627 
3,468 
- 
1,025 
13 
90 
9,562 
(1)
 
Including right-of-use assets

                            

                      

                

          
 

 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
55 

            
                  
                        
                              In millions of EUR 
Land and 
buildings
(1)
Gas 
transmissio
n pipelines 
- fair value 
model 
Gas 
distribution 
pipelines - 
fair value 
model 
Gas 
pipelines - 
cost model 
Technical 
equipment, 
plant and 
machinery
(1)
Other 
equipment, 
fixtures 
and fittings 
Under 
construc-
tion 
Total 
Cost or revaluation 
Level 3 
Level 3 
Balance at 1 January 2021 
2,020 
3,803 
3,900 
12 
1,940 
11 
177 
11,863 
Effects of movements in foreign exchange 
33 
- 
- 
- 
54 
- 
- 
87 
Additions 
37 
- 
10 
- 
34 
1 
88 
170 
Disposals 
(12) 
- 
(8) 
- 
(18) 
- 
(3) 
(41) 
Disposed entities 
(66) 
- 
- 
(13) 
- 
- 
(79) 
Transfers 
20 
- 
21 
- 
23 
- 
(64) 
- 
Change in provision recorded in property, plant and equipment 
28 
- 
- 
- 
- 
- 
- 
28 
Balance at 31 December 2021 
2,060 
3,803 
3,923 
12 
2,020 
12 
198 
12,028 
Depreciation and impairment losses 
Balance at 1 January 2021 
(661) 
(126) 
(181) 
- 
(839) 
(1) 
(8) 
(1,816) 
Effects of movements in foreign exchange 
(20) 
- 
- 
- 
(34) 
- 
(1) 
(55) 
Depreciation charge for the year 
(84) 
(89) 
(143) 
(1) 
(104) 
(1) 
- 
(422) 
Disposals 
11 
- 
3 
- 
14 
- 
3 
31 
Disposed entities 
30 
- 
- 
- 
11 
- 
41 
Impairment losses recognized in profit or loss 
2 
- 
- 
- 
- 
- 
- 
2 
Balance at 31 December 2021 
(722) 
(215) 
(321) 
(1) 
(952) 
(2) 
(6) 
(2,219) 
Carrying amounts 
At 1 January 2021 
1,359 
3,677 
3,719 
12 
1,101 
10 
169 
10,047 
At 31 December 2021 
1,338 
3,588 
3,602 
11 
1,068 
10 
192 
9,809 
(1)
 
Including right-of-use assets

                            

                      

                

          
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
56 

            
                  Revaluation of gas pipelines
Gas 
distribution 
pipeline 
owned 
and 
operated 
by 
SPP 
– 
distribúcia, 
a.s. 
and 
gas 
transmission 
pipeline 
owned and operated by 
eustream a.s. are 
recognised at revalued 
amount, primarily using 
the cost approach, 
especially the replacement cost method. Replacement costs are based on the acquisition cost of equivalent 
assets (EA) and are the estimated net book value of the assets from the acquisition 
cost of EA, useful lives 
and 
age 
of 
existing 
assets 
(replacement 
cost 
less 
depreciation 
methodology). 
For 
more 
details 
on 
revaluation, refer to Note 2 (d) and Note 4 (a).
If the pipelines were accounted 
for using the cost model, the net 
book value of the asset as at 
31 December 
2022 would be 
EUR 3,985 million 
(2021: EUR 4,084 
million) (net book 
value of eustream’s assets of 
EUR 
2,031 million 
(2021: EUR 
2,090 million) 
and net book 
value of SPPD’s assets 
of EUR 
1,954 million (2021: 
EUR 1,994 million)).

                        Impairment testing of Property, Plant and Equipment 
In relation 
to the 
ongoing military 
invasion in 
the territory 
of Ukraine 
and associated sanctions 
targeting 
the Russian Federation (further 
described in the note 
2(d) Use of estimates 
and judgments
)
, as at 
the date 
of these financial statements, the Parent 
Company analysed the impacts of the 
situation on its business and 
performed 
an 
impairment 
testing 
in 
line 
with 
its 
significant 
accounting 
policy 
described 
in 
note 
3 
(i) 
Impairment. 
The 
Company 
monitors 
performance 
of 
its 
subsidiaries 
on 
a 
regular 
basis 
and 
evaluates 
potential 
scenarios 
of 
future 
development 
of 
key 
subsidiaries 
performance. 
In 
particular, 
the 
Parent 
Company 
assessed 
scenarios 
for 
potential 
use 
of 
the 
transmission 
network 
and 
gas 
supply 
via 
the 
transmission system, the 
development of regulatory 
frameworks in countries 
where the Group 
operates, the 
consumption of gas 
and power in 
Slovakia, an overall 
demand for transmission 
and gas storage 
services, 
and consumption and 
price development 
of heat 
and electricity, all of 
which might 
have an impact 
on assets 
recoverable amount. The 
Parent Company evaluated 
various scenarios, including 
pessimistic alternatives 
that assumed, among other, the termination of Russian gas supplies to EU countries. 
The recoverable 
amount was 
determined as 
value in 
use based 
on the 
estimated future 
cash flows 
discounted 
to present value, using 
midterm business plans and 
perpetuity. The following underlying assumptions 
were 
considered for the base case scenario: 
●
Commodity prices are based on available forward prices, 
●
In 
the 
short 
to 
mid-term 
horizon, 
Russian 
gas 
is 
expected 
to 
continue 
to 
be 
supplied 
to 
EU 
countries at 
least at 
levels seen 
as of 
the balance 
sheet date. 
In the 
mid-term, EU 
countries are 
assumed to be able to build further incremental LNG capacities in 
the region in order to balance 
the reduction 
in Russian 
gas supplies 
experienced in 
2022 without 
the need 
to reduce 
significantly 
Europe's gas consumption, 
●
Due to 
the strategic 
position of 
eustream with 
respect to 
gas 
supply to 
countries neighbouring 
with 
Slovakia, 
the 
gas 
transmission 
network 
of 
eustream 
is 
deemed 
to 
be 
relevant 
even 
in 
a 
scenario with reduced or even stopped natural gas flows from Russia, 
●
The major Russian shipper is assumed to honour its long-term capacity 
contract with eustream, 
●
Natural gas demand in Slovakia and the neighbouring countries is expected to remain broadly in 
line with historical volumes, 
●
In the long term, natural gas is assumed to be replaced by low-carbon gases, 
●
The Group aims to 
be a frontrunner in 
the transition to a 
hydrogen future, therefore a 
necessary 
transformation of the business is expected to be undertaken. 
The discount 
rates applied 
to the 
cash flow 
projections used 
for the 
value in 
use determination 
are calculated 
as the Weighted Average 
Cost of Capital (WACC) of each CGU. Cost of Equity was determined using the 
Capital Asset 
Pricing Model, 
while parameters 
were based 
on the 
reputable external 
sources and 
peer-group 
entities relevant to 
each CGU. In 
particular, Cost of Equity 
takes into account 
a risk premium 
rate impacted 
by the recent developments (further described in Note 2 (d)). Cost 
of Debt was calculated as the weighted 
average rate of the Group's Loans and borrowing. 

                      

                

          

 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
57 

            
                  
                        Based on the 
above mentioned assumptions 
and the 
impairment test performed, 
the Parent 
Company has 
not identified any 
material Impairment of 
Property, 
Plant and Equipment 
in connection with 
the ongoing 
war in Ukraine that 
would require a correction of 
its measurement in the 
financial statements in line with 
the applicable accounting regulations. However, the future developments cannot 
be reliably predicted thus 
it is 
not possible to 
rule out 
the need 
for future 
adjustments to 
the values 
of Group’s 
Property, 
Plant and 
Equipment in the future.

                      
 
Idle assets 
As at 31 December 2022 and 31 December 2021 the Group had no significant 
idle assets. 
Security 
At 31 December 
2022 and 2021 
no property, plant and 
equipment is subject 
to pledges to 
secure bank loans 
or issued debentures.

                

          

            
                  
                        
                              
                                    
                                          16. 
Intangible assets (include goodwill) 
In millions of EUR 
Goodwill 
Software 
Emission 
rights 
Customer 
relationsh
ip and 
other 
contracts 
Other 
intangible 
assets 
Total 
Cost 
Balance at 1 January 2022 
116 
80 
129 
196 
17 
538 
Effect of movements in foreign exchange rates 
- 
- 
5 
1 
- 
7 
Additions 
- 
4 
207 
- 
4 
214 
Acquisitions 
1 
- 
- 
- 
6 
7 
Disposals 
- 
(3) 
(146) 
(154) 
(1) 
(304) 
Transfers 
- 
1 
- 
- 
(1) 
- 
Balance at 31 December 2022 
117 
82 
195 
43 
25 
462 
Amortisation and impairment losses 
Balance at 1 January 2022 
(11) 
(64) 
- 
(165) 
(5) 
(245) 
Effect of movements in foreign exchange rates 
- 
- 
- 
- 
- 
- 
Amortisation for the year 
- 
(5) 
- 
(2) 
(2) 
(10) 
Disposals 
- 
3 
- 
154 
- 
157 
Impairment losses recognized in profit or loss 
(34) 
- 
- 
- 
- 
(34) 
Balance at 31 December 2022 
(45) 
(66) 
- 
(13) 
(7) 
(132) 
Carrying amount 
At 1 January 2022 
105 
16 
129 
31 
12 
293 
At 31 December 2022 
72 
16 
195 
30 
18 
330

                                        

                                  

                            

                      

                

          

 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
58 

            
                  
                        
                              
                                    
                                          In millions of EUR 
Goodwill 
Software 
Emission 
rights 
Customer 
relationsh
ip and 
other 
contracts 
Other 
intangible 
assets 
Total 
Cost 
Balance at 1 January 2021 
110 
74 
69 
168 
15 
436 
Effect of movements in foreign exchange rates 
9 
5 
4 
1 
1 
20 
Additions 
- 
2 
126 
- 
2 
130 
Acquisitions 
- 
- 
- 
27 
- 
27 
Disposals 
- 
(2) 
(70) 
- 
- 
(72) 
Disposed entities 
(3) 
- 
- 
- 
- 
(3) 
Transfers 
- 
1 
- 
- 
(1) 
- 
Balance at 31 December 2021 
116 
80 
129 
196 
17 
538 
Amortisation and impairment losses 
Balance at 1 January 2021 
(11) 
(57) 
- 
(162) 
(4) 
(234) 
Effect of movements in foreign exchange rates 
(3) 
(3) 
- 
- 
- 
(6) 
Amortisation for the year 
- 
(6) 
- 
(3) 
(1) 
(10) 
Disposals 
- 
2 
- 
- 
- 
2 
Disposed entities 
3 
- 
- 
- 
- 
3 
Balance at 31 December 2021 
(11) 
(64) 
- 
(165) 
(5) 
(245) 
Carrying amount 
At 1 January 2021 
99 
17 
69 
6 
11 
202 
At 31 December 2021 
105 
16 
129 
31 
12 
293

                                        

                                  

                            

                      

                

          

            
                  
                        
                              In 
2022, 
the 
Group purchased 
emission allowances 
of 
EUR 193 
million (2021: 
EUR 112 
million). 
The 
remaining part of 
EUR 14 million (2021: 
EUR 14 million) was 
allocated to the Group 
by the Ministry of 
the Environment of the Czech Republic and Slovakia. 
Amortisation of intangible assets is 
included in the row Depreciation, 
amortisation and impairment in the 
consolidated statement of comprehensive income. 
All intangible assets, excluding goodwill, were recognised as assets with 
definite useful life. 
The Group did not capitalise any development costs in 2022 and 2021. 
The 
Group 
has 
also 
carried 
out 
research 
activities 
reflected 
in 
these 
consolidated 
financial 
statements. 
Research costs are recognised as operating expenses 
in the income statement immediately when incurred. 
However, no significant research costs were incurred during 2022 and 2021.

                            

                      

                

          

            
                  
                        
                              
                                    Impairment testing for cash-generating units containing goodwill 
For the 
purpose of 
impairment testing, 
goodwill is 
allocated to 
the Group’s 
cash-generating units 
which 
represent 
the 
lowest 
level 
within 
the 
Group 
at 
which 
goodwill 
is 
monitored 
for 
internal 
management 
purposes. 
The aggregate carrying amounts of goodwill allocated to single cash 
generating units are as follows:

                                  

                            

                      

                

          

            
                  
                        
                              
                                    In millions of EUR 
31 December 2022 
31 December 2021 
EOP Distribuce, a.s.* 
52 
52 
Elektrárny Opatovice, a.s.* 
8 
42 
EP Cargo a.s. 
5 
5 
EP ENERGY TRADING, a.s. 
5 
5 
Dobrá energie, s.r.o. 
1 
- 

                                  

                            

                      

                

          

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
59 

            
                  
                        
                              
                                    SPV100, s.r.o. 
1 
1 
Total goodwill 
72 
105 
* 
As of 1 January 2022, due to a demerger the former legal entity Elektrárny Opatovice, a.s. was split into two 
separate legal entities: EOP Distrubce, a.s.(heat distribution business) and Elektrárny Opatovice, a.s. (power and heat 
generation business)

                                  

                            

                      

                

          

            
                  
                        
                              
                                    Goodwill and impairment testing
In compliance with IAS 36, the Group annually conducts impairment testing of 
goodwill. The Group also 
conducts impairment testing of 
other intangible assets with 
indefinite useful lives, and 
of cash generating 
units 
(CGUs) 
where 
a 
trigger 
for 
impairment 
testing 
is 
identified. 
As 
at 
the 
acquisition 
date 
goodwill 
acquired 
is 
allocated 
to 
each 
of 
the 
cash-generating 
units 
expected 
to 
benefit 
from 
the 
combination’s 
synergies. 
Impairment 
is 
determined 
by 
assessing 
the 
recoverable 
amount 
of 
the 
CGU, 
to 
which 
the 
goodwill relates, on the basis 
of a value in use 
that reflects estimated future discounted cash 
flows. Value 
in 
use is 
derived from 
management forecasts 
of future 
cash flows 
updated since 
the date 
of acquisition. 
Impairment tests were performed in a similar manner as described 
in Note 15. 
In 2022, 
an impairment 
of Goodwill 
related to 
Elektrárny Opatovice, 
a.s. was booked 
in the 
amount of 
EUR 
34 million. No impairment of Goodwill was recognized in 2021.

                                  

                            

                      

                

          
 

 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
60 

            
                  
                        17. 
Deferred tax assets and liabilities 
Recognised deferred tax assets and liabilities 
The following deferred tax assets and (liabilities) have been recognised: 
In millions of EUR 
31 December 
2022 
31 December 
2022 
31 December 
2022 
31 December 
2021 
31 December 
2021 
31 December 
2021 
Temporary 
difference related to: 
Assets 
Liabilities 
Net 
Assets 
Liabilities 
Net 
Property, plant and equipment 
1 
(1,767) 
(1,766) 
1 
(1,814) 
(1,813) 
Intangible assets 
- 
(20) 
(20) 
- 
(20) 
(20) 
Inventories 
2 
- 
2 
2 
- 
2 
Trade receivables and other assets 
4 
- 
4 
4 
- 
4 
Provisions 
49 
- 
49 
49 
- 
49 
Employees benefits (IAS 19) 
5 
- 
5 
7 
- 
7 
Unpaid interest, net 
- 
- 
- 
- 
(2) 
(2) 
Loans and borrowings 
- 
(11) 
(11) 
1 
(12) 
(11) 
Tax losses 
1 
(1) 
- 
- 
(1) 
(1) 
Derivatives 
131 
(18) 
113 
154 
(10) 
144 
Other items 
5 
(21) 
(16) 
3 
(27) 
(24) 
Subtotal 
198 
(1,838) 
(1,640) 
221 
(1,886) 
(1,665) 
Set-off tax 
(150) 
150 
- 
(201) 
201 
- 
Total 
48 
(1,688) 
(1,640) 
20 
(1,685) 
(1,665)

                      

                

          

 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
61 

            
                  
                        Movements in deferred tax during the year 
In millions EUR 
Balances related to: 
Balance at 
1 January 2022 
Recognised in 
profit or loss 
Recognised in 
other 
comprehensive 
income 
Effect of 
movements in 
foreign exchange 
rate 
Balance at 31 
December 2022 
Property, plant and equipment 
(1,813) 
48 
- 
(1) 
(1,766) 
Intangible assets 
(20) 
- 
- 
- 
(20) 
Inventories 
2 
- 
- 
- 
2 
Trade receivables and other assets 
4 
- 
- 
- 
4 
Provisions 
49 
(1) 
- 
1 
49 
Employee benefits (IAS 19) 
7 
- 
(2) 
- 
5 
Unpaid interest, net 
(2) 
- 
2 
- 
- 
Loans and borrowings 
(11) 
- 
- 
- 
(11) 
Tax losses 
(1) 
1 
- 
- 
- 
Derivatives 
144 
- 
(32) 
1 
113 
Other 
(24) 
9 
- 
(1) 
(16) 
Total 
(1,665) 
57 
(32) 
- 
(1,640)

                      

                

          

 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
62 

            
                  
                        In millions EUR 
Balances related to: 
Balance at 
1 January 2021 
Recognised in 
profit or loss 
Recognised in 
other 
comprehensive 
income 
(1)
Transfer 
Outgoing 
entities
(2)
Effect of 
movements in 
foreign exchange 
rate 
Balance at 31 
December 2021 
Property, plant and equipment 
(1,853) 
40 
- 
- 
1 
(1) 
(1,813) 
Intangible assets 
(15) 
- 
- 
(5) 
- 
- 
(20) 
Inventories 
2 
- 
- 
- 
- 
- 
2 
Trade receivables and other assets 
2 
2 
- 
- 
- 
- 
4 
Provisions 
44 
4 
- 
- 
- 
1 
49 
Employee benefits (IAS 19) 
8 
- 
- 
- 
- 
(1) 
7 
Unpaid interest, net 
- 
(2) 
- 
- 
- 
- 
(2) 
Loans and borrowings 
(12) 
1 
- 
- 
- 
- 
(11) 
Tax losses 
1 
(2) 
- 
- 
- 
- 
(1) 
Derivatives 
40 
(4) 
107 
- 
- 
1 
144 
Other 
(31) 
5 
- 
- 
3 
(1) 
(24) 
Total 
(1,814) 
44 
107 
(5) 
4 
(1) 
(1,665) 
(1) 
The balance refers to Dobrá Energie s.r.o. 
(2) 
The balance refers to real estate subsidiaries disposed, namely Malešice Reality s.r.o. 
of EUR 2 million, Power Reality s.r.o. of EUR 1 
million and EPRE Reality s.r.o. of EUR 1 million.

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
63 

            
                  
                        Unrecognised deferred tax assets 
A deferred tax asset has not been recognised in respect of the following tax losses that are available for 
carry forward by certain EPIF Group entities 
In millions of EUR 
31 December 2022 
31 December 2021 
Tax losses carried forward 
151 
368 
Total 
151 
368 
A 
deferred 
tax 
asset 
that 
has 
not 
been 
recognised 
in 
respect 
of 
the 
tax 
losses 
is 
attributable 
to 
the 
following entities: 
In millions of EUR 
31 December 2022 
31 December 2021 
Seattle Holding B.V. 
96 
97 
EP Energy, a.s. 
28 
- 
Czech Gas Holding Investment B.V. 
13 
8 
Slovak Gas Holding B.V. 
12 
188 
SPP Infrastructure, a.s. 
2 
2 
EPH Gas Holding B.V. 
- 
65 
Nafta Exploration d.o.o. 
- 
4 
EP Infrastructure, a.s. 
- 
4 
Total 
151 
368

                      

                

          

            
                  
                        The 
entities in 
the 
table 
represent 
holding companies 
with 
insignificant operating 
activities. 
The 
Group 
does not 
expect significant 
taxable profit 
growth on 
these entities, 
so no 
deferred tax 
was recognized. 
If 
sufficient taxable profits 
were to be 
achieved in 2022, 
then the associated 
tax income (savings) 
would be 
up to EUR 68 million (2021: 68 million). 
A deferred 
tax asset 
is recognised 
for the 
carry-forward of 
unused tax 
losses only 
to the 
extent that 
it is 
probable that future taxable profit will be available against 
which the unused tax losses can be utilised. An 
estimate of the expiry of tax losses is shown below: 
2023 
2024 
2025 
2026 
After 2026 
Total 
Tax 
losses
1 
1 
14 
- 
135 
151 
Tax losses 
expire over a period of 5 years in the 
Czech Republic, 4 years in Slovakia and 6 years (9 
years 
for 
losses 
up 
to 
2018) 
in 
the 
Netherlands 
for 
standard 
tax 
losses. 
Under 
current 
tax 
legislation, 
some 
deductible temporary differences do not expire. Deferred tax assets have not been recognised in respect of 
these items because, due to the 
varying nature of the sources of these 
profits, it is not probable that future 
taxable profit against 
which the Group 
can utilise the 
benefits from 
the deferred tax 
assets will be 
available.

                      

                

          

            
                  18. 
Inventories 
In millions of EUR 
31 December 2022 
31 December 2021 
Natural gas 
279 
147 
Raw materials and supplies 
18 
14 
Fossil fuel 
10 
14 
Spare parts 
14 
13 
Work in progress 
2 
2 
Total 
323 
190 
As at 31 December 2022 and 2021 no inventories were subject to pledges.

                

          
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
64 

            
                  
                        
                              
                                    
                                          19. 
Trade receivables 
and other assets 
In millions of EUR 
31 December 2022 
31 December 2021 
Trade receivables 
417 
349 
Margin deposit relating to derivatives
(2)
311 
- 
Advance payments 
70 
65 
Other receivables and assets 
19 
26 
Value 
added tax receivables, net 
8 
35 
Estimated receivables 
3 
4 
Accrued income
(1)
- 
20 
Allowance for bad debts 
(31) 
(31) 
Total 
797 
468 
Non-current 
48 
44 
Current 
749 
424 
Total 
797 
468 
1) 
For more detail on accrued income refer to Note 29 – Commitments and contingencies 
2) 
As at 31 December 2021, Margin deposit relating to derivatives amounting to EUR 63 
million was recognized in Financial instrument 
and financial liabilities in Consolidated statement of financial 
position

                                        

                                  

                            

                      

                

          

            
                  
                        In 2022 EUR 1 million receivables were written-off through profit or loss (2021: 
EUR 2 million). 
As at 31 December 2022 and 2021 no receivables are subject to pledges. 
As at 
31 December 2022 
trade receivables and 
other assets amounting 
EUR 783 million 
are not past 
due 
(2021: EUR 
442 million), 
remaining net 
balance of 
EUR 14 million 
is overdue (2021: 
EUR 26 million). 
For 
more 
detailed 
aging 
analysis 
refer 
to 
Note 
31 
(a)(ii) 
– 
Risk 
management 
– 
credit 
risk 
(impairment 
losses). 

                              As at 31 December 2022 and 2021 the fair value of trade receivables and other assets equal to its carrying 
amount.

                            
 
The 
Group’s 
exposure 
to 
credit 
and 
currency 
risks 
and 
impairment 
losses 
related 
to 
trade 
and 
other 
receivables is disclosed in Note 31 – Risk management policies and disclosures.

                      

                

          

            
                  
                        20. 
Cash and cash equivalents 
In millions of EUR 
31 December 2022 
31 December 2021 
Current accounts with banks 
1,407 
466 
Term deposits 
141 
35 
Total 
1,548 
501

                      

                

          

            
                  
                        Term deposits with original maturity of up to three months are classified as cash equivalents. 
As at 31 December 2022 and 2021 no cash equivalents are subject to 
pledges.

                      

                

          
 

            
                  21. 
Equity 

                        Share capital and share premium 
The 
authorised, 
issued 
and 
fully 
paid 
share 
capital 
as 
at 
31 
December 
2022 
consisted 
of 
222,870,000 
ordinary shares with 
a par value 
of CZK 250 each (2021: 
222,870,000 ordinary shares) (“Shares 
A”) and 
100,130,000 shares (with 
which special 
rights relating to 
profit distribution are 
connected as 
specified in 
the Articles of Incorporation) with a par value of CZK 250 each (2021: 
100,130,000 shares) (“Shares B”). 

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
65 

            
                  
                        The shareholder is entitled 
to receive dividends and 
to cast 1 vote per 
1 share of nominal value 
CZK 250 at 
meetings of the Company’s shareholders. 
The balance 
of the 
share capital 
increased to 
EUR 3,248 
million due 
to the 
change of 
the functional 
currency 
of the Parent Company from 1 January 2022. For more details see Note 3(a).

                      
 

                        In 2022 the Company declared and paid no 
dividends (2021: EUR 10

                              0
                            
 
million (EUR 

                              449
                            
 
per share) to its 
shareholders. 
In 2022 and 2021 the Group paid dividends as follows:

                      

                

          

            
                  
                        in millions of EUR 
31 December 2022 
31 December 2021 
Shareholders of the Company 
- 
100 
NCI* 
82 
119 
Total 
82 
219 
* 
Comprise dividends paid to non-controlling shareholders which are mainly SPP, 
a.s., Ministry of Economy of the 
Slovak Republic and City of Pilsen

                      

                

          

            
                  
                        31 December 2022 
Number of shares 
Ownership 
Voting rights 
In thousands of pieces 
250 CZK 
% 
% 
Shares A 
Shares B 
EPIF Investments a.s. 
222,870 
- 
69 
69 
CEI Investments S.à r.l. 
- 
100,130 
31 
31 
Total 
222,870 
100,130 
100 
100 
31 December 2021 
Number of shares 
Ownership 
Voting rights 
In thousands of pieces 
250 CZK 
% 
% 
Shares A 
Shares B 
EPIF Investments a.s. 
222,870 
- 
69 
69 
CEI Investments S.à r.l. 
- 
100,130 
31 
31 
Total 
222,870 
100,130 
100 
100

                      

                

          

            
                  
                        Reserves recognised in equity comprise the following items: 
In millions of EUR 
31 December 2022 
31 December 2021 
Non-distributable reserves 
1 
1 
Revaluation reserve 
1,293 
1,335 
Hedging reserve 
(295) 
(321) 
Translation reserve 
61 
(54) 
Other capital reserves 
(4,182) 
(3,814) 
Total 
(3,122) 
(2,853)

                      

                

          

            
                  
                        Other capital reserves 
As stated in section 
3 (b) vii – 
Pricing differences, the Group 
accounted for pricing 
differences which arose 
from the 
acquisition of 
subsidiaries from 
Energetický a 
průmyslový holding, 
a.s. or 
subsidiaries contributed 
to 
the 
share 
capital 
of 
the 
Company 
by 
Energetický 
a 
průmyslový 
holding, 
a.s. 
As 
these 
acquired 
or 
contributed 
entities 
were 
under 
common 
control 
of 
Energetický 
a 
průmyslový 
holding, 
a.s., 
they 
were 
therefore excluded from the scope of 
IFRS 3, which defines recognition of 
goodwill raised from business 
combination as the excess 
of the cost 
of an acquisition over 
the fair value 
of the Group’s 
share of the 
net 
identifiable assets, 
liabilities and contingent 
liabilities of the 
acquired subsidiary. Acquirees under 
common 
control 
are 
treated 
under 
the 
net 
book 
value 
presented 
in 
the 
consolidated 
financial 
statements 
of 
Energetický a průmyslový 
holding, a.s. (i.e. including 
historical goodwill less potential 
impairment). The 
difference 
between the 
cost of 
acquisition and 
carrying values 
of net 
assets of 
the acquiree 
and original 

                      

                

          

 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
66 

            
                  
                        goodwill 
carried 
forward 
as 
at 
the 
acquisition 
date 
were 
recorded 
to 
consolidated 
equity 
as 
pricing 
differences. Pricing 
differences are 
presented in 
Other capital 
reserves in 
Equity. 
“Note 6 
– Acquisitions 
and contributions 
of subsidiaries, 
special purpose 
entities, joint-ventures 
and associates” 
summarises the 
effects of all common control transactions in both periods. 
Translation reserve 
The 
translation 
reserve 
comprises 
all 
foreign 
exchange 
differences 
arising 
from 
the 
translation 
of 
the 
financial 
statements 
of 
foreign 
operations 
of 
the 
Group 
and 
translation 
of 
the 
consolidated 
financial 
statements to presentation currency. 
Revaluation reserve 
For more details on revaluation, refer to Note 2 (d) and Note 4 (a). 
Hedging reserves 
The effective 
portion of 
fair value 
changes in 
derivatives (financial 
and commodity) 
designated as 
cash 
flow hedges are recognised in equity (for more details please refer to Note 28 – Financial instruments and 
Note 31 – Risk management policies and disclosure). 
During 2022 the 
Group reclassified EUR 
456 million as 
expense from Hedging 
reserves to Profit 
or loss 
(2021: EUR 139 million as expense).

                      

                

          
 

            
                  22. 
Earnings per share 
Basic earnings per share 
Basic earnings per share in EUR per 1 share of CZK 250 (2021: in EUR per 1 share of CZK 250) nominal 
value equal 1.28 (2021: 0.97). 
The 
calculation of 
basic earnings 
per share 
as 
at 
31 December 
2022 was 
based on 
profit attributable 
to 
ordinary shareholders 
of EUR 
413 million 
(2021: EUR 
313 million), 
and a 
weighted average 
number of 
ordinary shares outstanding of 323,000,000 (2021: 323,000,000).

                

          

            
                  Weighted average number of ordinary shares 
in 2022 and 2021 
In pieces 
Nominal 
 
Weighted 
Issued shares 
323,000,000 
323,000,000 
of which on 6 February 2017 classified as: 
Ordinary shares “A” (1 share/CZK 250) 
222,870,000 
222,870,000 
Shares “B” (1 share/CZK 250) 
100,130,000 
100,130,000 
Total 
323,000,000 
323,000,000

                

          

            
                  Dilutive earnings per share 
As the Group issued 
no convertible debentures 
or other financial instruments 
with dilutive potential 
effects 
on ordinary share, diluted earnings per share is the same as basic earnings 
per share.

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
67 

            
                  23. 
Non-controlling interest 
31 December 2022 
Stredoslovenská 
energetika 
Holding, a.s. and 
its subsidiaries 
(including SSD) 
NAFTA a.s. and 
its subsidiaries 
SPP 
Infrastructure, a.s. 
and its subsidiaries
(3)
SPP distribúcia, 
a.s. and its 
subsidiaries 
eustream a.s. 
POZAGAS a.s. 
Plzeňská 
teplárenská, a.s. 
Other 
individually 
immaterial 
subsidiaries 
Total 
In millions of EUR 
Non-controlling percentage 
(6)
51.00% 
31.01% 
(6)
51.00% 
(6) 
51.00% 
(6)
51.00% 
38.01% 
65.00% 
Business activity 
Distribution of 
electricity 
Gas storage and 
exploration 
Distribution of gas 
Distribution of 
gas 
Transmission of 
gas 
Gas storage and 
exploration 
Production and 
distribution of 
heat 
Country
(1)
Slovakia 
Slovakia, 
Germany 
Slovakia 
Slovakia 
Slovakia 
Slovakia 
Czech Republic 
Carrying amount of NCI at 
31 December 2022 
339 
157 
(105) 
1,423 
1,032 
45 
159 
21 
3,071 
Profit 
(loss) attributable to non- 
controlling interest for the period 
25 
63 
(2) 
66 
86 
15 
22 
10 
285 
Dividends declared 
(75) 
(2) 
- 
- 
- 
- 
(5) 
- 
(82) 
Statement of financial position 
information
(2)
Total assets 
1,135 
855 
5,545 
4,253 
4,431 
158 
344 
of which: 
non-current 
811 
553 
(4)
5,420 
3,780 
4,025 
40 
238 
 
current 
326 
302 
124 
473 
406 
119 
106 
Total liabilities 
473 
349 
682 
1,461 
2,407 
39 
99 
of which: 
non-current 
265 
262 
623 
1,346 
1,920 
16 
29 
 
current 
207 
87 
60 
116 
487 
23 
70 
Net assets 
664 
506 
4,863 
2,792 
2,024 
120 
244 
- 
- 
Statement of comprehensive income 
information
(2)
Total revenues 
1,610 
393 
480 
498 
345 
82 
223 
of which: 
dividends received 
- 
11 
(5)
464 
- 
- 
- 
- 
Profit after tax 
48 
214 
461 
130 
168 
40 
34 
Total other comprehensive income for the 
period, net of tax 
1 
4 
- 
6 
142 
- 
- 
Total comprehensive income for the year
(2)
49 
218 
461 
135 
309 
40 
34 
- 
- 
Net cash inflows (outflows)
(2)
2 
219 
36 
164 
97 
66 
(38) 
(1) 
Principal place of business of subsidiaries and associates varies 
(for detail refer to Note 33 – Group 
entities) 
(2) 
Financial information derived from individual financial statements 
prepared in accordance 
with IFRS including fair value adjustments arising from 
the acquisition 
by the Group 
(3) 
Excluding NAFTA a.s. and its subsidiaries, 
SPP Storage, s.r.o. 
and SPP - distribúcia, a.s. and its subsidiaries, eustream, 
a.s. and POZAGAS a.s. The non-controlling interest 
in these entities is negative as the consolidated net asset 
value of the 
entities after elimination of investment in subsidiaries is 
negative. 
(4) 
Includes financial investments in eustream, a.s., 
SPP-distribúcia, a.s., NAFTA, a.s. 
and POZAGAS eliminated in calculation of NCI 
(5) 
Includes dividends from eustream, 
a.s., SPP-distribúcia, a.s., NAFTA, 
a.s. and POZAGAS, if any, eliminated 
in calculation of NCI 
(6) 
Even though the immediate parent companies hold less 
than half of the voting rights, the Group assumes 
its control over the subgroups 
through shareholders’ agreements 
that provide the Group with management 
control as the shareholder’s 
agreement provides the 
Group with right and ability to manage subgroups’ 
activities and influence thus their performance and 
return on the investment.

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
68 

            
                  31 December 2021 
Stredoslovenská 
energetika 
Holding, a.s. and 
its subsidiaries 
(including SSD) 
NAFTA a.s. and 
its subsidiaries 
SPP 
Infrastructure, a.s. 
and its subsidiaries
(3)
SPP distribúcia, 
a.s. and its 
subsidiaries 
eustream a.s. 
POZAGAS a.s. 
Plzeňská 
teplárenská, a.s. 
Other 
individually 
immaterial 
subsidiaries 
Total 
In millions of EUR 
Non-controlling percentage 
(6)
51.00% 
31.01% 
(6)
51.00% 
(6) 
51.00% 
(6)
51.00% 
38.01% 
65.00% 
Business activity 
Distribution of 
electricity 
Gas storage and 
exploration 
Distribution of gas 
Distribution of 
gas 
Transmission of 
gas 
Gas storage and 
exploration 
Production and 
distribution of 
heat 
Country
(1)
Slovakia 
Slovakia, 
Germany 
Slovakia 
Slovakia 
Slovakia 
Slovakia 
Czech Republic 
Carrying amount of NCI at 
31 December 2021 
387 
114 
(340) 
1,561 
874 
36 
138 
14 
2,784 
Profit 
(loss) attributable to non- 
controlling interest for the period 
40 
25 
(1) 
67 
133 
5 
11 
9 
289 
Dividends declared 
(113) 
(1) 
(220) 
- 
- 
- 
(5) 
(1) 
(340) 
Statement of financial position 
information
(2)
Total assets 
1,175 
691 
5,597 
4,538 
4,369 
122 
293 
of which: 
non-current 
857 
568 
(4)
5,559 
4,031 
4,139 
45 
219 
 
current 
318 
123 
38 
507 
230 
77 
74 
Total liabilities 
416 
322 
1,195 
1,476 
2,655 
26 
81 
of which: 
non-current 
198 
273 
773 
1,361 
2,011 
21 
27 
 
current 
218 
49 
422 
115 
644 
5 
54 
Net assets 
759 
369 
4,402 
3,062 
1,714 
95 
212 
- 
- 
Statement of comprehensive income 
information
(2)
Total revenues 
1,121 
226 
285 
466 
565 
31 
150 
of which: 
dividends received 
- 
13 
(5)
270 
- 
- 
- 
- 
Profit after tax 
293 
90 
268 
131 
261 
14 
17 
Total other comprehensive income for the 
period, net of tax 
- 
- 
- 
2 
(373) 
- 
- 
Total comprehensive income for the year
(2)
293 
90 
268 
133 
(112) 
14 
17 
- 
- 
Net cash inflows (outflows)
(2)
(160) 
(30) 
7 
(29) 
23 
4 
18 
(1) 
Principal place of business of subsidiaries and associates varies 
(for detail refer to Note 33 – Group 
entities) 
(2) 
Financial information derived from individual financial statements 
prepared in accordance 
with IFRS including fair value adjustments arising from 
the acquisition by the Group 
(3) 
Excluding NAFTA a.s. and its subsidiaries, 
SPP Storage, s.r.o. 
and SPP - distribúcia, a.s. and its subsidiaries, eustream, 
a.s. and POZAGAS a.s. The non-controlling interest 
in these entities is negative as the consolidated net asset 
value of the 
entities after elimination of investment in subsidiaries is 
negative. 
(4) 
Includes financial investments in eustream, a.s., 
SPP-distribúcia, a.s., NAFTA, a.s. 
and POZAGAS eliminated in calculation of NCI 
(5) 
Includes dividends from eustream, 
a.s., SPP-distribúcia, a.s., NAFTA, 
a.s. and POZAGAS, if any, eliminated 
in calculation of NCI 
(6) 
Even though the immediate parent companies hold less 
than half of the voting rights, the Group assumes 
its control over the subgroups 
through shareholders’ agreements 
that provide the Group with 
management control as the shareholder’s 
agreement provides the 
Group with right and ability to manage subgroups’ 
activities and influence thus their performance and 
return on the investment.

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
69 

            
                  
                        24. 
Loans and borrowings 
In millions of EUR 
31 December 2022 
31 December 2021 
Loans payable to credit institutions 
689 
207 
Issued debentures at amortised costs 
3,875 
3,872 
Liabilities from financial leases 
65 
62 
Total 
4,629 
4,141 
Total non-current liabilities 
4,530 
4,079 
Total current liabilities 
99 
62 
Total 
4,629 
4,141 
The weighted average interest rate on loans and borrowings (excl. debentures) 
for 2022 was 1.32% 
(2021: 0.91%).

                      

                

          

            
                  
                        
                              Issued debentures at amortised costs 
Details about debentures issued as at 31 December 2022 are presented 
in the following table: 
In millions of EUR 
Principal 
Accrued 
interest 
Unamortised 
transactions 
cost/premium 
/discounts 
Maturity 
Interest 
rate (%) 
Effective 
interest 
rate (%) 
SPP Infrastructure Financing bond II 
500 
12 
(2) 
12/2/2025 
2.625 
2.685 
eustream bond 
500 
4 
(3) 
25/6/2027 
1.625 
1.759 
EP Infrastructure 2024 notes 
750 
9 
(1) 
26/4/2024 
1.659 
1.786 
EP Infrastructure 2026 notes 
600 
4 
(2) 
30/7/2026 
1.698 
1.795 
EP Infrastructure 2028 notes 
500 
2 
(2) 
9/10/2028 
2.045 
2.117 
EP Infrastructure 2031 notes 
500 
8 
(3) 
2/3/2031 
1.816 
1.888 
SPPD bond 
500 
3 
(4) 
9/6/2031 
1.000 
1.079 
Total 
3,850 
42 
(17) 
- 
- 
- 
Details about debentures issued as at 31 December 2021 are presented 
in the following table: 
In millions of EUR 
Principal 
Accrued 
interest 
Unamortised 
transactions 
cost/premium 
/discounts 
Maturity 
Interest 
rate (%) 
Effective 
interest 
rate (%) 
SPP Infrastructure Financing bond II 
500 
12 
(2) 
12/2/2025 
2.625 
2.685 
eustream bond 
500 
4 
(3) 
25/6/2027 
1.625 
1.759 
EP Infrastructure 2024 notes 
750 
8 
(2) 
26/4/2024 
1.659 
1.786 
EP Infrastructure 2026 notes 
600 
4 
(3) 
30/7/2026 
1.698 
1.795 
EP Infrastructure 2028 notes 
500 
2 
(3) 
9/10/2028 
2.045 
2.117 
EP Infrastructure 2031 notes 
500 
8 
(3) 
2/3/2031 
1.816 
1.888 
SPPD bond 
500 
3 
(3) 
9/6/2031 
1.000 
1.079 
Total 
3,850 
41 
(19) 
- 
- 
-

                            

                      

                

          

 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
70 

            
                  
                        
                              EP Infrastructure bonds (2024 Notes)
On 26 April 2018, EP Infrastructure successfully placed at par its debut international offering of EUR 750 
million. 
Notes 
are 
issued 
in 
nominal 
value 
of 
EUR 
100,000 
each 
and 
bear 
1.659% 
fixed 
rate 
and 
are 
unsecured (“2024 Notes”). The 2024 
Notes are listed on Irish 
Stock Exchange (Euronext Dublin). Unless 
previously redeemed or cancelled, the 2024 Notes 
will be redeemed at their principal 
amount on 26 April 
2024. 
The Group 
may prematurely 
redeem all, 
but not 
part, of 
the 2024 
Notes at 
a redemption 
price equal 
to 100% 
of the aggregate principal 
amounts thereof plus accrued 
and unpaid interest and 
additional amounts, if any, 
plus a “make 
whole” premium. 
Further, the Group 
may redeem all, 
but not part, 
of the 2024 
Notes at 
a price 
equal to 100% of 
the aggregate principal amounts thereof plus 
accrued and unpaid interest and additional 
amounts, if any, 
upon the occurrence of 
certain changes in applicable 
tax laws. Upon the 
occurrence of a 
certain change of control 
events, the Group 
may be required to 
offer to redeem the 
2024 Notes prematurely 
at 
the 
principal 
amount 
of 
100% 
of 
the 
prematurely 
redeemed, 
plus 
accrued 
and 
unpaid 
interest 
and 
additional amounts, if any. 
The 2024 Notes contain 
a covenant limiting certain 
types of distributions 
to issuer’s shareholders in 
certain 
circumstances. The 
EPIF Group 
has to 
monitor the 
ratio of 
total amount 
of Group’s 
net debt 
to Group’s 
EBITDA (i.e. net leverage) before certain types of distributions are carried 
out. 
The 2024 Notes are stated 
net of debt issue costs 
of EUR 5 million (at 
inception). These costs are allocated 
to the profit and loss account 
over the term of the 
2024 Notes through the effective interest 
rate of 1.786%. 
EP Infrastructure bonds (2026 Notes)
On 30 July 
2019, EP Infrastructure 
successfully placed 
at par its 
offering of EUR 
600 million 1.698% 
fixed 
rate unsecured notes due 
in July 2026 in 
the denomination of EUR 
100,000 each (“2026 
Notes”). The 2026 
Notes are listed on Irish Stock Exchange (Euronext Dublin). Unless 
previously redeemed or cancelled, the 
2026 
Notes 
will 
be 
redeemed 
at 
their 
principal 
amount 
on 
30 
July 
2026. 
The 
Group 
may 
prematurely 
redeem all, but not part, of the 2026 Notes 
at a redemption price equal to 100% of the 
aggregate principal 
amounts 
thereof 
plus 
accrued 
and 
unpaid 
interest 
and 
additional 
amounts, 
if 
any, 
plus 
a 
“make 
whole” 
premium. Further, 
the Group may redeem 
all, but not part, 
of the 2026 Notes 
at a price equal 
to 100% of 
the aggregate 
principal amounts 
thereof plus 
accrued and 
unpaid interest 
and additional 
amounts, if 
any, 
upon the occurrence of certain changes in applicable tax laws. Upon the occurrence of a certain change of 
control events, the Group may 
be required to offer 
to redeem the 2026 
Notes prematurely at the principal 
amount of 100% of the prematurely redeemed, plus accrued and 
unpaid interest and additional amounts, if 
any. 
The 2026 Notes contain 
a covenant limiting certain 
types of distributions 
to issuer’s shareholders in 
certain 
circumstances. The 
EPIF Group 
has to 
monitor the 
ratio of 
total amount 
of Group’s 
net debt 
to Group’s 
EBITDA (i.e. net leverage) before certain types of distributions are carried out. The 2026 Notes are stated 
net of debt 
issue costs of 
EUR 4 million. 
These costs are 
allocated to the 
profit and loss 
over the term 
of 
the 2026 Notes through the effective interest rate of 1.795%. 
EP Infrastructure bonds (2028 Notes)
On 9 October 
2019, EP Infrastructure 
successfully placed at 
par its offering 
of EUR 500 
million 2.045% 
fixed rate unsecured notes due 
in October 2028 in the 
denomination of EUR 100,000 
each (“2028 Notes”). 
The 
2028 
Notes 
are 
listed 
on 
Irish 
Stock 
Exchange (Euronext 
Dublin). 
Unless 
previously 
redeemed 
or 
cancelled, the 2028 Notes will be redeemed at their principal amount on 9 October 
2028. 
The Group 
may prematurely 
redeem all, 
but not 
part, of 
the 2028 
Notes at 
a redemption 
price equal 
to 100% 
of the aggregate principal 
amounts thereof plus accrued 
and unpaid interest and 
additional amounts, if any, 
plus a “make 
whole” premium. 
Further, the Group 
may redeem all, 
but not part, 
of the 2028 
Notes at 
a price 
equal to 100% of 
the aggregate principal amounts thereof plus 
accrued and unpaid interest and additional 
amounts, if any, 
upon the occurrence of 
certain changes in applicable 
tax laws. Upon the 
occurrence of a 
certain change of control 
events, the Group 
may be required to 
offer to redeem the 
2028 Notes prematurely 
at 
the 
principal 
amount 
of 
100% 
of 
the 
prematurely 
redeemed, 
plus 
accrued 
and 
unpaid 
interest 
and 
additional amounts, if any. 

                            

                      

                

          

 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
71 

            
                  
                        
                              The 2028 Notes contain 
a covenant limiting certain 
types of distributions 
to issuer’s shareholders in 
certain 
circumstances. The 
EPIF Group 
has to 
monitor the 
ratio of 
total amount 
of Group’s 
net debt 
to Group’s 
EBITDA (i.e. net leverage) before certain types of distributions are carried out. The 2028 Notes are stated 
net of debt 
issue costs of 
EUR 3 million. 
These costs are 
allocated to the 
profit and loss 
over the term 
of 
the 2028 Notes through the effective interest rate of 2.117%. 
EP Infrastructure bond (2031 Notes) 
On 2 
March 2021, 
EP Infrastructure 
successfully placed 
at par 
its offering 
of EUR 
500 million 
1.816% 
fixed rate unsecured notes due in 
March 2031 in the denomination of 
EUR 100,000 each (“2031 Notes”). 
The 
2031 
Notes 
are 
listed 
on 
Irish 
Stock 
Exchange (Euronext 
Dublin). 
Unless 
previously 
redeemed 
or 
cancelled, the 2028 
Notes will be 
redeemed at their 
principal amount on 
2 March 
2031. The proceeds 
of 
the 2031 Notes were used for partial prepayment of the Group´s financial 
indebtedness. 
The Group 
may prematurely 
redeem all, 
but not 
part, of 
the 2031 
Notes at 
a redemption 
price equal 
to 100% 
of the aggregate principal 
amounts thereof plus accrued 
and unpaid interest and 
additional amounts, if any, 
plus a “make 
whole” premium. 
Further, the Group 
may redeem all, 
but not part, 
of the 2031 
Notes at 
a price 
equal to 100% of 
the aggregate principal amounts thereof plus 
accrued and unpaid interest and additional 
amounts, if any, 
upon the occurrence of 
certain changes in applicable 
tax laws. Upon the 
occurrence of a 
certain change of control 
events, the Group 
may be required to 
offer to redeem the 
2031 Notes prematurely 
at 
the 
principal 
amount 
of 
100% 
of 
the 
prematurely 
redeemed, 
plus 
accrued 
and 
unpaid 
interest 
and 
additional amounts, if any. 
The 2031 Notes contain 
a covenant limiting certain 
types of distributions 
to issuer’s shareholders in 
certain 
circumstances. The 
EPIF Group 
has to 
monitor the 
ratio of 
total amount 
of Group’s 
net debt 
to Group’s 
EBITDA (i.e. net leverage) before certain types of distributions are carried out. The 2031 Notes are stated 
net of debt 
issue costs of 
EUR 3 million. 
These costs are 
allocated to the 
profit and loss 
over the term 
of 
the 2031 Notes through the effective interest rate of 1.888%. 
2031 SPPD bond 
On 9 
June 2021, 
SPP - 
distribúcia, a.s. issued 
unsecured notes in 
the amount 
of EUR 500 
million with a 
fixed interest rate 
of 1% p.a. 
The SPPD Bonds 
are listed on 
the Official List 
of the Irish 
Stock Exchange 
and traded on the regulated market of Euronext Dublin The SPPD Bonds 
are redeemable on 9 June 2031. 
The SPPD 
Bonds are 
unsecured. However, 
their terms 
contain a 
negative pledge 
covenant according 
to 
which SPPD 
or any 
of its 
subsidiaries shall 
not create 
or permit 
to subsist 
any security 
interest upon 
the 
whole or 
any part 
of its 
present or 
future undertakings, 
assets or 
revenues, subject 
to certain 
exceptions 
specified therein. 
Further, SPPD may 
prematurely redeem all, but not 
part, of the 2031 notes 
at a redemption price equal 
to 
100% of the aggregate principal amounts thereof plus accrued and unpaid 
interest and additional amounts, 
if any, 
plus a 
“make whole” amount. 
Further, SPPD 
may redeem 
all, but 
not part, 
of the 
2031 notes 
at a 
price 
equal 
to 
100% 
of 
the 
aggregate 
principal 
amounts 
thereof 
plus 
accrued 
and 
unpaid 
interest 
and 
additional 
amounts, 
if 
any, 
upon 
the 
occurrence 
of 
certain 
changes 
in 
applicable 
tax 
laws. 
Upon 
the 
occurrence of a 
certain change 
of control events, 
holders of 
the 2031 notes 
may require 
the SPPD to 
redeem 
the 2031 
notes prematurely 
at 100% 
of the 
principal amount, 
plus accrued 
and unpaid 
interest and 
additional 
amounts, if any. In addition, the SPPD Bonds contain customary events of defaults. 
The 2031 SPPD bond is 
stated net of debt issue 
costs of EUR 2 million. 
These costs are amortized 
over the 
maturity 
of 
the 
notes 
to 
the 
profit 
and 
loss 
account 
through 
the 
effective 
interest 
rate 
of 
1.079%. 
The 
proceeds of 
the 
2031 SPPD 
Notes 
were used 
for repayment 
of 
the 
SPPD’s 
notes 
due in 
June 
2021 and 
general corporate purposes. 
SPP Infrastructure Financing bond II (2025 Notes)
On 12 February 2015, SPP Infrastructure Financing B.V. 
issued bonds in the amount of EUR 
500 million 
with a fixed interest rate 
of 2.625% p.a. The SPP Infrastructure Financing bond 
II is listed on the 
Official 
List 
of 
the 
Irish 
Stock 
Exchange 
and 
traded 
on 
the 
regulated 
market 
of 
Euronext 
Dublin. 
The 
bond 
is 
guaranteed unconditionally and irrevocably by Eustream. 
Bond may be prematurely redeemed under 
same 
conditions as Eustream bond below. 

                            

                      

                

          

 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
72 

            
                  
                        
                              The maturity of bonds is on 12 February 2025. 
The 2020 
SPP Infrastructure 
Financing B.V. 
bond is 
stated net 
of debt 
issue costs 
of EUR 
1 million 
(at 
inception). These 
costs are 
allocated to 
the 
profit and 
loss 
account through 
the effective 
interest rate 
of 
2.685%. 
2027 eustream bond 
On 25 
June 2020, 
eustream, a.s. 
issued 7-year 
senior unsecured 
bond in 
the total 
amount of 
EUR 500 
million 
bearing fixed 
interest rate 
of 1.625% 
per annum. 
The Eustream 
Bond is 
listed on 
the Official 
List of 
the 
Irish Stock Exchange and traded on the regulated market of Euronext 
Dublin. 
Coupon is payable annually in arrears on 25 June of each year. 
The 2027 eustream bond is reported net of 
debt issue costs of 
EUR 2 million. These 
costs are allocated to 
the profit and loss 
account using effective 
interest rate of 1.759%. 
Eustream may prematurely redeem 
all, but not part, of 
the 2027 Notes at a 
redemption price equal to 
100% 
of the aggregate principal 
amounts thereof plus accrued 
and unpaid interest and 
additional amounts, if any, 
plus a “make whole” 
premium. Further, Eustream may 
redeem all, but not 
part, of the 2027 
Notes at a 
price 
equal to 100% of 
the aggregate principal amounts thereof plus 
accrued and unpaid interest and additional 
amounts, if any, 
upon the occurrence of 
certain changes in applicable 
tax laws. Upon the 
occurrence of a 
certain change of control events, Eustream 
may be required to offer to redeem the 
2027 Notes prematurely 
at 
the 
principal 
amount 
of 
100% 
of 
the 
prematurely 
redeemed, 
plus 
accrued 
and 
unpaid 
interest 
and 
additional amounts, if any.

                            

                      

                

          

 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
73 

            
                  
                        Other loans and borrowings 
Terms and 
debt repayment schedule 
Terms and conditions of outstanding loans as at 31 December 2022 were as follows: 
In millions of EUR 
Cur- 
rency 
Nominal 
interest 
rate 
Year 
of 
maturity 
(up to) 
Balance at 
31/12/2022 
Due within 
1 year 
Due in 1–5 
years 
Due in 
following 
years 
Unsecured bank loan 
EUR 
variable* 
2024 
70 
26 
44 
- 
Unsecured bank loan 
EUR 
variable* 
2025 
403 
3 
400 
- 
Unsecured bank loan 
EUR 
variable* 
2027 
153 
12 
141 
- 
Unsecured bank loan 
EUR 
variable* 
2029 
60 
- 
- 
60 
Unsecured bank loan 
EUR 
fixed 
2023 
3 
3 
- 
- 
Liabilities from 
finance leases 
EUR 
65 
14 
40 
11 
Total interest-
bearing 
liabilities 
754 
58 
625 
71 
* 
Variable 
interest rate is derived as EURIBOR plus a margin. All interest rates are market based. 
Terms and conditions of outstanding loans as at 31 December 2021 were as follows: 
In millions of EUR 
Cur- 
rency 
Nominal 
interest 
rate 
Year 
of 
maturity 
(up to) 
Balance at 
31/12/2021 
Due within 
1 year 
Due in 1–5 
years 
Due in 
following 
years 
Unsecured bank loan 
EUR 
variable* 
2021 
- 
- 
- 
- 
Unsecured bank loan 
EUR 
variable* 
2024 
77 
7 
70 
- 
Unsecured bank loan 
EUR 
variable* 
2027 
65 
- 
- 
65 
Unsecured bank loan 
EUR 
variable* 
2029 
60 
- 
- 
60 
Unsecured bank loan 
EUR 
fixed 
2023 
5 
2 
3 
- 
Unsecured loan 
CZK 
fixed 
2024 
- 
- 
- 
- 
Liabilities from 
finance leases 
EUR 
62 
12 
36 
14 
Total interest-
bearing 
liabilities 
269 
21 
109 
139 
* 
Variable 
interest rate is derived as EURIBOR plus a margin. All interest rates are market based.

                      

                

          
 

            
                  
                        EPIF Facilities Agreement 
EP Infrastructure, a.s. is a party to a term and revolving facilities agreement dated 14 January 2020 with a 
group of financing banks (the “EPIF’s 
Facilities Agreement”), pursuant to which EPIF has been 
provided 
with term 
facility A 
in the 
amount of 
EUR 400 million 
due 14 
January 2025 
(which was 
fully repaid 
on 
5 March 2021) and 
revolving facility B 
with a committed limit 
of EUR 400 million 
due 14 January 
2025 
(with EUR 400 million amount outstanding as of 31 December 2022). 
The debts of EPIF under 
the EPIF’s Facilities 
Agreement are general, senior unsecured debts of 
the EPIF 
and 
rank 
equally 
in 
right 
of 
payment 
with 
the 
EPIF’s 
existing 
and 
future 
indebtedness 
that 
is 
not 
subordinated in right of payment. 
The 
EPIF’s 
Facilities 
Agreement 
contains 
restrictive 
provisions 
which, 
among 
other 
things, 
limit 
the 
Group’s 
ability to 
incur additional 
financial indebtedness, 
perform acquisitions, 
invest in 
joint ventures, 
make distributions and certain other 
payments, dispose of assets, 
issue shares, provide loans or 
guarantees, 
or 
create 
security 
or 
EPIF’s 
ability 
to 
merge 
with 
other 
companies. 
These 
restrictions 
are 
subject 
to 
a 
number 
of 
exceptions 
and 
qualifications. 
For 
example, 
EPIF 
can 
make 
distributions 
and 
certain 
other 
payments and the Group can perform acquisitions if, among other things, the Group net leverage 
does not 
exceed a 
certain limit, 
and the 
Group can 
incur additional 
financial indebtedness if, 
among other 
things, 

                      

                

          

 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
74 

            
                  
                        certain 
net 
leverage 
limits 
set 
for 
various 
Group 
levels 
are 
met, 
among 
other 
things, 
the 
Group’s 
proportionate 
net 
leverage 
ratio 
does 
not 
exceed 
4.5x. 
The 
EPIF’s 
Facilities 
Agreement 
also 
contains 
change of control provisions the triggering of which may result in mandatory 
prepayment. 
NAFTA Facilities Agreement 
NAFTA is a 
party to a senior term and revolving facilities agreement dated 25 
January 2019 with a group 
of financing banks (the “NAFTA’s 
Facilities Agreement”), pursuant to which NAFTA 
has been provided 
with a 
term facility 
in the 
amount of 
EUR 175 
million due 
25 January 
2024 (facility 
was fully 
repaid in 
2021) and 
a revolving 
facility with 
a committed 
limit of 
EUR 75 
million due 
25 January 
2024 (with 
no 
amount outstanding as of 31 December 2022). 
The 
obligations 
of 
NAFTA 
under 
the 
NAFTA’s 
Facilities 
Agreement 
are 
general, 
senior 
unsecured 
obligations and rank 
equally in right 
of payment with 
NAFTA’s 
existing and future 
indebtedness that is 
not 
subordinated in right of payment. 
The NAFTA’s 
Facilities Agreement 
contains restrictive 
provisions which, 
among other 
things, limit 
the 
NAFTA’s 
ability to incur additional financial indebtedness, perform acquisitions, invest in 
joint ventures, 
make distributions and certain other 
payments, dispose of assets, 
issue shares, provide loans or 
guarantees, 
or create security or the NAFTA’s 
ability to merge with other companies. These restrictions are subject to 
a number 
of 
exceptions and 
qualifications. The 
NAFTA’s 
Facilities Agreement 
also 
contains change 
of 
control provisions the triggering of which may result in mandatory 
repayment. 
Nafta Revolving Facility Agreement 
NAFTA 
is a 
party to 
a framework 
agreement on 
provision of 
financial services 
dated 31 
July 2013 
with 
Komerční banka, a.s. (the 
“NAFTA’s 
Framework Agreement”), as 
amended from time 
to time, pursuant to 
which a facility in the total amount of EUR 
58.5 million is available to NAFTA, 
which may be utilised in 
form of a mid-term loan (up to 
EUR 43.5 million, due on 24 January 2024) 
and/or the following forms of 
utilisations up 
to the 
total limit 
of EUR 
15 million: 
an overdraft 
loan, short 
term loans 
(up to 
3-month tenor), 
performance 
bonds, 
retention guarantees, 
payment 
guarantees, 
bid 
bonds, 
advance 
payment 
guarantees, 
documentary letters 
of credit, 
and certain 
specific performance 
bonds (up 
to EUR 
0.5 million). 
As at 
31 
December 2022, 
the 
total amount 
outstanding under 
the 
NAFTA’s 
Framework Agreement 
is 
EUR 43.5 
million. 
The 
obligations 
of 
NAFTA 
under 
the 
NAFTA’s 
Framework 
Agreement 
are 
general, 
senior 
unsecured 
obligations and rank 
equally in right 
of payment with 
NAFTA’s 
existing and future 
indebtedness that is 
not 
subordinated in right of payment. 
The NAFTA’s 
Framework Agreement 
contains restrictive 
provisions and 
undertakings standard 
for this 
type of financing which, among other things, limit the NAFTA’s 
ability to dispose of assets or merge with 
other companies. The restrictions are 
subject to a number 
of exceptions and qualifications. Moreover, 
the 
NAFTA’s 
Framework Agreement 
contains customary 
events of 
default, including, 
among other 
things, non 
payment, misrepresentation, 
cross-default, insolvency, 
insolvency proceedings, 
material adverse 
change, 
unlawfulness and licenses termination. On and 
at any time after the 
occurrence of an event of default, 
the 
lender may cancel its commitments and/or declare 
all or part of the loans or other 
utilisation, together with 
accrued interest, immediately due and payable. 
 
Eustream Facilities Agreements
Eustream is a party to 
a series of several bilateral revolving credit 
facility agreements dated 20 December 
2019, as amended and restated 
from time to time, with 
several external lenders, and a 
syndicated revolving 
credit facility agreement dated 20 December 2019 with, among others, 
Slovenská sporiteľňa, a.s. as agent, 
and 
certain 
financial 
institutions 
named 
therein 
as 
lenders 
(the 
“Eustream 
Facilities 
Agreements”). 
The 
revolving facilities have terms of five years. In addition, commitment limits of 
several revolving facilities 

                      

                

          

 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
75 

            
                  
                        provided under the Eustream Facilities Agreements were reduced to the aggregate amount up to EUR 170 
million as of 31 December 2022 (with no amount outstanding 
as of 31 December 2022). 
The 
obligations 
of 
Eustream 
under 
the 
Eustream 
Facilities 
Agreements 
are 
general, 
senior 
unsecured 
obligations and rank equally in right of payment with the Eustream’s existing and future indebtedness that 
is not subordinated 
in right of 
payment. The final 
maturity dates with 
respect to the 
revolving loan facilities 
under the Eustream Facilities Agreements occur on 20 December 
2024. 
The Eustream Facilities Agreements contain restrictive provisions and undertakings standard for 
this type 
of financing 
which, among other 
things, limit the 
Eustream’s ability 
to dispose 
of assets, create 
security, 
change its business 
or merge with 
other companies. 
These restrictions 
are subject 
to a 
number of exceptions 
and qualifications. Some of the Eustream Facilities Agreements 
also contain a change of control provision 
the 
triggering 
of 
which 
may 
result 
in 
mandatory 
prepayment. 
In 
addition, 
the 
Eustream 
Facilities 
Agreements contains customary events 
of defaults, including, among 
other things, non-payment, breach 
of 
other obligations, misrepresentation, cross default, insolvency, insolvency proceedings, creditors’ process, 
unlawfulness, repudiation and 
material adverse change. 
On and at 
any time after 
the occurrence of 
an event 
of default, the lenders may 
cancel their commitments and/or declare all 
or part of the loans, 
together with 
accrued interest, immediately due and payable. 
SPPD Finance Contract I 
SPPD 
is 
a 
party 
to 
a 
finance 
contract 
with 
the 
European 
Investment Bank 
(“EIB”) 
dated 
12 November 
2014, as amended or restated from time to 
time (“SPPD Finance Contract I”). The 
SPPD Finance Contract 
I is English law governed 
and provides for a 
term loan in the aggregate 
amount of EUR 100 million 
due 23 
December 2024 (with 
EUR 26 million 
outstanding as of 
31 December 2022) for 
the financing 
of the 
gas 
distribution networks upgrade project in the Slovak Republic for 
the period between 2014 and 2018. 
The obligations of SPPD 
under the SPPD Finance 
Contract I are general, 
senior unsecured obligations of 
SPPD and 
rank equally 
in right 
of payment 
with the 
SPPD’s 
existing and 
future indebtedness that 
is not 
subordinated in right 
of payment, including 
the SPPD 
Bonds. SPPD may, 
if it 
gives prior 
notice not less 
than one month, prepay the whole or any part of any tranche under the 
SPPD Finance Contract I, together 
with any 
accrued interest 
and indemnities. 
Furthermore, the 
SPPD Finance 
Contract I 
contains financial 
covenants involving 
the regular 
testing of 
the SPPD’s 
net debt 
to EBITDA 
ratio, which 
may not 
exceed 
2.65x for the relevant measurement period (12 months ending on 30 June and 31 December of each year). 
Breach 
of 
the 
financial 
covenants 
constitutes 
an 
event 
of 
default 
upon 
which 
EIB 
may 
cancel 
its 
commitments and/or declare 
all or 
part of 
the loans, 
together with 
accrued interest, immediately 
due and 
payable. 
Further, the SPPD 
Finance Contract 
I contains 
restrictive provisions 
and undertakings 
standard for 
this type 
of financing 
which, among other 
things, limit 
the SPPD’s 
ability to 
dispose of 
assets, enter 
into material 
transactions, change its business 
or merge with other 
companies. These restrictions 
are subject to a number 
of 
exceptions and 
qualifications. Moreover, 
the 
SPPD 
Finance 
Contract 
I 
contains 
customary events 
of 
defaults, 
including, 
among 
other 
things, 
non-payment, 
misrepresentation, 
cross-default, 
insolvency, 
insolvency proceedings, 
security enforced, 
material adverse 
change, unlawfulness 
and licenses 
termination. 
On and at any 
time after the occurrence of 
an event of default, the 
lenders may cancel their commitments 
and/or declare all or part of the loans, together with accrued interest, immediately 
due and payable. 
SPPD Finance Contract II 
SPPD is 
a party 
to the 
finance contract 
with EIB 
dated 25 
September 2018, 
as amended 
and/or restated 
from 
time 
to 
time 
(“SPPD 
Finance 
Contract 
II”). 
The 
SPPD 
Finance 
Contract 
II 
is 
Luxembourg 
law 
governed and provides for a term loan in 
the aggregate amount of EUR 60 million 
due 23 September 2029 
(with EUR 60 million outstanding as of 
as of 31 December 2022) for the 
financing of the gas distribution 
networks upgrade project in the Slovak Republic for the period 
between 2019 and 2022. 

                      

                

          

 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
76 

            
                  
                        The obligations of SPPD under the SPPD Finance Contract II are general, senior unsecured obligations of 
SPPD and 
rank equally 
in right 
of payment 
with the 
SPPD’s 
existing and 
future indebtedness that 
is not 
subordinated in right of payment, including the SPPD Bonds. SPPD may, if it gives prior notice of no less 
than 30 
calendar days, 
prepay the 
whole or 
any part 
of any 
tranche under 
SPPD Finance 
Contract II, 
together 
with any 
accrued interest and 
indemnities. Furthermore, the 
SPPD Finance Contract 
II contains financial 
covenants involving 
the regular 
testing of 
the SPPD’s 
net debt 
to EBITDA 
ratio, which 
may not 
exceed 
2.65x 
for 
the 
relevant measurement 
period (12 
months ending 
on 
31 
January and 
31 
July 
of 
any 
year). 
Breach 
of 
the 
financial 
covenants 
constitutes 
an 
event 
of 
default 
upon 
which 
EIB 
may 
cancel 
their 
commitments and/or declare 
all or 
part of 
the loans, 
together with 
accrued interest, immediately 
due and 
payable. 
Further, 
the SPPD 
Finance Contract 
II contains 
restrictive provisions 
and undertakings 
standard for 
this 
type of 
financing which, 
among other 
things, limit 
the SPPD’s ability 
to dispose 
of assets, 
enter into 
material 
transactions, change its business 
or merge with other 
companies. These restrictions 
are subject to a number 
of 
exceptions 
and 
qualifications. 
Moreover, 
SPPD 
Finance 
Contract 
II 
contains 
customary 
events 
of 
defaults, 
including, 
among 
other 
things, 
non-payment, 
misrepresentation, 
cross-default, 
insolvency, 
insolvency proceedings, 
security enforced, 
material adverse 
change, unlawfulness 
and licenses 
termination. 
On and at any 
time after the occurrence of 
an event of default, the 
lenders may cancel their commitments 
and/or declare all or part of the loans, together with accrued interest, immediately 
due and payable.
Eustream Finance Contract 
Eustream is a party to the finance contract with EIB dated 27 December 2017, as amended and/or restated 
from time to time (the “Eustream Finance Contract”). The Eustream Finance Contract is Luxembourg law 
governed and provides for a term loan in the aggregate amount of EUR 65 million due 31 December 2027 
(with 
EUR 53 
million 
outstanding 
as 
of 
31 December 
2022) 
for 
the 
financing 
of 
the Poland-Slovak 
interconnector and modification of the existing compressor station at Velké Kapušany. 
The obligations 
of Eustream 
under the 
Eustream Finance 
Contract are 
general, senior 
unsecured obligations 
of Eustream and rank 
equally in right 
of payment with 
the Eustream’s existing and future 
indebtedness that 
is not subordinated in 
right of payment, 
including the Eustream 
Bonds. Furthermore, the 
Eustream Finance 
Contract contains financial covenants involving the regular testing of the Eustream’s 
net debt to EBITDA 
ratio, which 
may not 
exceed 2.65x 
for the 
relevant measurement 
period (12 
months ending on 
31 December 
and 30 June of any 
year). Breach of the 
financial covenants constitutes 
an event of default upon 
which EIB 
may 
cancel 
their 
commitments 
and/or 
declare 
all 
or 
part 
of 
the 
loans, 
together 
with 
accrued 
interest, 
immediately due and payable. 
Further, the 
Eustream Finance Contract 
contains restrictive provisions 
and undertakings standard 
for this 
type of 
financing which, 
among other 
things, limit 
the Eustream’s 
ability to 
dispose of 
assets, enter 
into 
material transactions, change its business or merge with other companies. These restrictions are subject to 
a number of 
exceptions and qualifications. Moreover, 
the Eustream Finance Contract 
contains customary 
events 
of 
defaults, 
including, 
among 
other 
things, 
non-payment, 
misrepresentation, 
cross-default, 
insolvency, insolvency proceedings, security enforced, 
material adverse change, unlawfulness 
and licenses 
termination. On 
and at 
any time 
after the 
occurrence of 
an event 
of default, 
the lenders 
may cancel 
their 
commitments and/or declare 
all or 
part of 
the loans, 
together with 
accrued interest, immediately 
due and 
payable. 
SSE Finance Contract 
SSEH, SSE 
and 
SSD are 
parties to 
the 
facilities agreement 
dated 30 
June 
2022, as 
amended (the 
“SSE 
Finance Contract”) 
with Slovenská sporiteľňa, a.s., pursuant to which SSEH, 
SSE and SSD were provided 
with a term facility in 
the amount of EUR 
50 million (with EUR 50 
million outstanding as of 
31 December 
2022) and 
a revolving 
facility in 
the amount 
of 100 
million (with 
EUR 50 
million outstanding 
as 
of 31 
December 2022), both due 30 June 2027. 

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
77 

            
                  
                        The debts 
of SSEH, 
SSE and 
SSD are 
general, senior 
debts of 
SSEH, SSE 
and SSD 
and rank 
equally in 
right of payment 
with the borrowers’ 
existing and future 
indebtedness that is 
not subordinated in 
right of 
payment. 
SSEH 
guarantees 
the 
payment 
obligations 
of 
SSE 
and 
SSD. 
The 
facilities 
are 
otherwise 
unsecured. 
The SSE Finance Contract contains restrictive 
provisions standard for this type of 
financing which, among 
other 
things, limit 
the 
SSEH’s 
ability to 
incur 
additional financial 
indebtedness, provide 
loans, perform 
acquisitions, 
invest 
in 
joint 
ventures, 
make 
distributions 
and 
certain 
other 
payments, 
dispose 
of 
assets, 
provide loans or guarantees, create security 
or merge with other 
companies. These restrictions are subject 
to a 
number of 
exceptions and 
qualifications. The SSE 
Finance Contract 
also contains 
change of 
control 
provisions the triggering of which may result in mandatory prepayment. 
 

                      

                

          

 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
78 

            
                  
                        
                              Fair value information 
The fair value of interest bearing instruments held at amortised costs is shown 
in the table below:

                            

                      

                

          

            
                  
                        
                              
                                    In millions of EUR 
31 December 2022 
31 December 2021 
Carrying 
amount 
Fair Value 
Carrying 
amount 
Fair Value 
Loans payable to credit institutions 
689 
668 
207 
207 
Issued debentures at amortised costs 
3,875 
3,113 
3,872 
3,995 
Liabilities from financial leases 
65 
65 
62 
65 
Total 
4,629 
3,846 
4,141 
4,267

                                  

                            

                      

                

          

            
                  
                        
                              Issued debentures 
are categorised 
within Level 
1 or 2 
of the 
fair value hierarchy. Bank 
loans are 
categorised 
within 
Level 
2 
or 
3 
of 
the 
fair 
value 
hierarchy 
(for 
detail 
of 
valuation 
methods 
refer 
to 
Note 
2 
(e) 
i 
– 
Assumption and estimation uncertainties).

                            
Significant investing and financing activities not requiring cash:
In millions of EUR 
31 December 2022 
31 December 2021 
Financing activities 
- 
220 
Total 
- 
220 
For the 
year 2022 
there were 
no non-cash 
financing activities 
and for 
the year 
2021 non-cash 
financing 
activities include partial set-off 
of SPPI loan provided 
to Slovenský plynárenský priemysel, 
a.s. The total 
amount 
of 
the 
loan 
was 
EUR 
220 
million, 
of 
which 
the 
amount 
EUR 
220 
million 
was 
set-off 
against 
dividends declared by SPPI to Slovenský plynárenský priemysel, a.s.

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
79 

            
                  Reconciliation of movement of liabilities to cash flows arising 
from financing activities 
Liabilities 
Equity 
Loans from 
credit 
institutions 
Loans from 
other than 
credit 
institutions 
Issued 
debentures 
Finance lease 
liabilities 
Share capital / 
premium 
Reserves 
Retained 
earnings 
NCI 
Total 
Balance as at 31 December 2021 
207 
- 
3,872 
62 
2,996 
(2,853) 
899 
2,784 
7,967 
Effect of change in functional currency 
- 
- 
- 
- 
261 
(273) 
12 
- 
- 
Balance as at 1 January 2022 
207 
- 
3,872 
62 
3,257 
(3,126) 
911 
2,784 
7,967 
Changes from financing cash flows 
Proceeds from loans and borrowings 
500 
- 
- 
- 
- 
- 
- 
- 
500 
Repayment of borrowings 
(21) 
- 
- 
- 
- 
- 
- 
- 
(21) 
Payment of finance lease liabilities 
- 
- 
- 
(12) 
- 
- 
- 
- 
(12) 
Dividend paid 
- 
- 
- 
- 
- 
- 
- 
(82) 
(82) 
Total change from financing cash flows 
479 
- 
- 
(12) 
- 
- 
- 
(82) 
385 
Changes arising from obtaining or losing of control of 
subsidiaries 
- 
- 
- 
- 
- 
- 
- 
- 
Total effect of changes in foreign exchange rates 
- 
- 
- 
(2) 
- 
(14) 
- 
- 
(16) 
Other changes 
Liability related 
Interest expense 
8 
- 
70 
2 
- 
- 
- 
- 
80 
Interest paid 
(5) 
- 
(67) 
(2) 
- 
- 
- 
- 
(74) 
Lease liability (impact of IFRS16) 
- 
- 
- 
17 
- 
- 
- 
- 
17 
Total liability-related other changes 
3 
- 
3 
17 
- 
- 
- 
- 
23 
Total equity-related other changes 
- 
- 
- 
- 
18 
455 
369 
842 
Balance at 31 December 2022 
689 
- 
3,875 
65 
3,257 
(3,122) 
1,366 
3,071 
9,201

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
80 

            
                  Reconciliation of movement of liabilities to cash flows arising 
from financing activities 
Liabilities 
Equity 
Loans from 
credit 
institutions 
Loans from 
other than 
credit 
institutions 
Issued 
debentures 
Finance lease 
liabilities 
Share capital / 
premium 
Reserves 
Retained 
earnings 
NCI 
Total 
Balance as at 1 January 2021 
1,042 
1 
3,441 
58 
2,996 
(2,571) 
644 
3,012 
8,623 
Changes from financing cash flows 
Proceeds from loans and borrowings 
105 
- 
1,000 
- 
- 
- 
- 
- 
1,105 
Repayment of borrowings 
(941) 
(1) 
(570) 
- 
- 
- 
- 
- 
(1,512) 
Transaction cost related to loans and borrowings 
- 
- 
(5) 
- 
- 
- 
- 
- 
(5) 
Payment of finance lease liabilities 
- 
- 
- 
(14) 
- 
- 
- 
- 
(14) 
Set-off of dividends with loans provided 
- 
- 
- 
- 
- 
- 
- 
(220) 
(220) 
Dividend paid 
- 
- 
- 
- 
- 
- 
(100) 
(119) 
(219) 
Total change from financing cash flows 
(836) 
(1) 
425 
(14) 
- 
- 
(100) 
(339) 
(865) 
Changes arising from obtaining or losing of control of 
subsidiaries 
- 
- 
- 
- 
- 
- 
- 
- 
Total effect of changes in foreign exchange rates 
(2) 
- 
3 
2 
- 
(15) 
- 
- 
(12) 
Other changes 
Liability related 
Interest expense 
10 
- 
84 
1 
- 
- 
- 
- 
95 
Interest paid 
(7) 
- 
(81) 
(1) 
- 
- 
- 
- 
(89) 
Lease liability (impact of IFRS16) 
- 
- 
- 
16 
- 
- 
- 
- 
16 
Total liability-related other changes 
3 
- 
3 
16 
- 
- 
- 
- 
22 
Total equity-related other changes 
- 
- 
- 
- 
(267) 
355 
111 
199 
Balance at 31 December 2021 
207 
- 
3,872 
62 
2,996 
(2,853) 
899 
2,784 
7,967

                

          

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
81 

            
                  
                        25. 
Provisions 
In millions of EUR 
Employee 
benefits 
Provision 
for 
emission 
rights 
Provision for 
restoration and 
decommissioning 
Provision for 
lawsuits and 
litigations 
Other 
Total 
Balance at 1 January 2022 
40 
142 
210 
1 
32 
425 
Provisions made during the year 
3 
204 
2 
- 
3 
212 
Provisions used during the year 
(2) 
(146) 
(1) 
- 
(6) 
(155) 
Provisions released during the year 
(2) 
- 
(3) 
- 
(7) 
(12) 
Unwind of discount
(1)
- 
- 
1 
- 
- 
1 
Change in provision recorded in 
property, plant and equipment 
- 
- 
(10) 
- 
- 
(10) 
Actuarial gains/losses 
(6) 
- 
- 
- 
- 
(6) 
Effect of movements in foreign 
exchange rates 
- 
8 
(2) 
- 
1 
7 
Balance at 31 December 2022 
33 
208 
197 
1 
23 
462 
Non-current 
32 
- 
194 
1 
22 
249 
Current 
1 
208 
3 
- 
1 
213 
(1) 
Unwinding of discount is included in interest expense.

                      

                

          
 

            
                  
                        In millions of EUR 
Employee 
benefits 
Provision 
for 
emission 
rights 
Provision for 
restoration and 
decommissioning 
Provision for 
lawsuits and 
litigations 
Other 
Total 
Balance at 1 January 2021 
43 
66 
188 
1 
22 
320 
Provisions made during the year 
2 
139 
2 
- 
6 
149 
Provisions used during the year 
(5) 
(68) 
(1) 
- 
(1) 
(75) 
Provisions released during the year 
- 
- 
(4) 
- 
- 
(4) 
Unwind of discount
(1)
- 
- 
2 
- 
- 
2 
Change in provision recorded in 
property, plant and equipment 
- 
- 
24 
- 
4 
28 
Effect of movements in foreign 
exchange rates 
- 
5 
(1) 
- 
1 
5 
Balance at 31 December 2021 
40 
142 
210 
1 
32 
425 
Non-current 
39 
- 
204 
1 
20 
264 
Current 
1 
142 
6 
- 
12 
161 
(1) 
Unwinding of discount is included in interest expense.

                      

                

          
 

            
                  
                        Accounting for 
provisions involves 
frequent use 
of estimates, 
such as 
probability of 
occurrence of 
uncertain 
events 
or 
calculation 
of 
the 
expected 
outcome. 
Such 
estimates 
are 
based 
on 
past 
experience, 
statistical 
models and professional judgement. 

                              Employee benefits 
The Group 
recorded a 
provision for 
long-term employee 
benefits related 
to its 
employees. Valuations 
of 
these 
provisions are 
sensitive 
to 
assumptions used 
in 
the 
calculations, such 
as 
future 
salary and 
benefit 
levels, 
discount 
rates, 
employee 
leaving 
rate, 
late 
retirement 
rate, 
mortality 
and 
life 
expectancy. 
The 
management considered 
various estimated 
factors and 
how these 
estimates would 
impact the 
recognised 
provision. As a result of this analysis, no significant variances to the 
recorded provision are expected. 
The most significant 
provisions in the amount 
of EUR 10 
million (2021: EUR 11 
million) were recorded 
by Stredoslovenská energetika 
Holding, a.s. and 
Stredoslovenská distribučná, a.s., 
EUR 9 
million (2021: 

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
82 

            
                  
                        
                              EUR 13 million) by NAFTA 
Germany and its subsidiaries, EUR 5 million (2021: EUR 6 million) by SPP 
– distribúcia, a.s., EUR 4 million (2021: EUR 4 million) by NAFTA a.s and EUR 3 million (2021: EUR 4 
million) by eustream, a.s. 
i.
NAFTA Germany and its subsidiaries 
Through 
employer-funded 
company 
pension 
scheme 
the 
Group 
makes 
a 
contribution 
to 
employees’ 
retirement provision 
and support 
them in 
the event 
of invalidity 
or bereavement. 
The Group 
pension scheme 
provides 
for 
a 
personal pension 
to 
be 
paid 
to 
each 
employee 
of 
the 
Group 
once the 
waiting period 
has 
elapsed. The 
extent of 
this company 
pension depends 
on the 
years of 
service and 
remuneration paid. 
In 
supplementation of the employer-funded pension 
scheme, employees also have the 
option of providing for 
retirement themselves by means of a remuneration conversion, thus additionally 
securing their standard of 
living after retirement. 
ii.
SSE Holding Group 
Pension Plans 
This program has 
a defined contribution 
pension plan under 
which the Group 
pays fixed contributions 
to 
third parties or government. The Group 
has no legal or constructive 
obligation to pay further funds, if 
the 
amount of 
plan assets 
is insufficient 
to pay 
all the 
performance of 
employees who 
are eligible 
for the 
current 
and prior periods. 
The amount of benefits depends on several factors, such as age, years of 
service and salary. 
Unfunded pension plan with defined benefit 
From 2022, the companies within the SSE Holding Group signed 
individual collective agreements for the 
period 2023 
– 2025, 
the Companies 
are obliged 
to pay 
its employees 
upon age 
pension or 
disability pension, 
depending on seniority, the following multiples of the average monthly salary: 
Years 
of service
Multiples of average monthly wage 
10 years or less 
2 
11 – 15 years 
4 
16 – 20 years 
5 
21 – 25 years 
6 
25 years and more 
7 
The minimum requirement 
of the Labour Code 
to post the retirement, 
equal to one average 
monthly salary, 
is included in the above multiples. 
Other benefits 
The Companies in the SSE Holding Group also pays benefits for work 
and life anniversaries. 
The Companies 
had created expectations 
on the 
part of 
its employees that 
it will 
continue to 
provide the 
benefits and it is 
management’s judgement that it is 
not probable that 
the Group will 
cease to provide 
them. 
iii.
Other companies
The long-term 
employee benefits program 
at the 
Companies (NAFTA, 
SPPD and 
eustream) is 
a defined 
benefit program, 
under which 
employees are 
entitled to 
a lump-sum 
payment upon 
old age 
or disability 
retirement as a multiple of the employee’s average salary and, subject to vesting conditions. To 
date it has 
been 
an 
unfunded 
program, 
with no separately 
allocated 
assets 
to 
cover 
the 
program’s 
liabilities. 
The 
Companies also pays benefits for work and life anniversaries. 
The Companies 
had created expectations 
on the 
part of 
its employees that 
it will 
continue to 
provide the 
benefits and it is 
management’s judgement that it is 
not probable that 
the Group will 
cease to provide 
them.

                            
Provision for emission rights 
Provision for 
emission rights 
is 
recognised 
regularly during 
the 
year 
based 
on 
the 
estimated 
number of 
tonnes of CO2 emitted. It is measured at the 
best estimate of the expenditure required to settle the 
present 
obligation at the end of the reporting period. 

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
83 

            
                  
                        Provision for restoration and decommissioning 
The major 
part of 
the provision 
was primarily 
recorded by 
NAFTA 
a.s. EUR 
88 million 
(2021: EUR 
98 
million), 
NAFTA 
Germany 
GmbH 
EUR 
81 
million 
(2021: 
EUR 
80 
million), 
POZAGAS 
a.s. 
EUR 
12 
million (2021: EUR 17 million) and SPP Storage, s.r.o. EUR 8 million (2021: EUR 6 million). 
NAFTA a.s. currently has 115 
production wells in addition to 236 storage wells. Production wells that are 
currently in 
production or 
are being 
used for 
other purposes 
are expected 
to be 
abandoned after 
reserves 
have 
been 
fully 
produced or 
when it 
has 
been 
determined that 
the 
wells 
will 
not 
be 
used 
for 
any 
other 
purposes. Storage wells 
are expected to 
be abandoned after the 
end of their 
useful lives. NAFTA 
a.s. has 
the obligation to dismantle the production and storage wells, decontaminate contaminated soil, restore the 
area, and restore the site to its original condition to the extent as stipulated 
by law. 
The provision for abandonment 
and restoration has been 
estimated using existing technology 
and reflects 
expected 
future 
inflation. 
The 
present 
value 
of 
these 
costs 
was 
calculated 
using 
a 
discount 
rate, 
which 
reflects the 
current market 
assessment of 
the time 
value of 
money – 
risk free 
rate (2022: 
2.7% – 
3.3%; 
2021: 1.1%). The provision takes into account the 
estimated costs for the abandonment of production and 
storage wells 
and centres, 
and the 
costs of 
restoring the 
sites to 
their original 
condition. These 
costs are 
expected to be incurred between 2023 and 2093. 
NAFTA 
Germany 
GmbH 
(through 
its 
subsidiaries) 
currently 
has 
48 
storage 
wells. 
Storage 
wells 
are 
expected to be abandoned 
after the end of 
their useful lives. NAFTA Germany GmbH has the 
obligation to 
dismantle the 
storage wells, 
decontaminate contaminated 
soil, restore 
the area, 
and restore 
the site 
to its 
original condition to the extent as stipulated by law. 
The provision for abandonment 
and restoration has been 
estimated using existing technology and 
reflects 
expected 
future 
inflation. 
The 
present 
value 
of 
these 
costs 
was 
calculated 
using 
a 
discount 
rate, 
which 
reflects the 
current market 
assessment of 
the time 
value of 
money – 
risk free 
rate (2022: 
2.7% – 
2.9%; 
2021:1.2%). 
The provision takes 
into account the 
estimated costs for 
the abandonment of storage 
wells and 
centres, and 
the costs 
of restoring 
the sites 
to their 
original condition. 
These costs 
are expected 
to be 
incurred 
between 2039 and 2048. 
POZAGAS a.s. estimated the provision for decontamination and restoration using the existing technology 
and current prices adjusted 
for expected future inflation 
and discounted using a 
discount rate that reflects 
the current market assessment of the time value of money – risk free 
rate (2022: 3%; 2021: 1.2%). 
SPP Storage, s.r.o. (“SPP 
Storage”) currently 
has 3 production 
wells and 38 
storage wells. 
Production wells 
that are 
currently in 
production are 
expected to 
be abandoned 
after reserves have 
been fully 
produced or 
when 
it 
has 
been 
determined 
that 
the 
wells 
will 
not 
be 
used 
for 
any 
other 
purposes. 
Storage 
wells 
are 
expected to 
be abandoned 
after the 
end of 
their useful 
lives or 
after the 
operation of 
the underground storage 
facility is discontinued. 
SPP Storage, 
s.r.o. has the obligation 
to dismantle 
the production 
and storage 
wells, 
decontaminate contaminated soil, restore the area, 
and restore the site to its original 
condition to the extent 
as stipulated by law. 
The provision for abandonment 
and restoration has been 
estimated using existing technology and 
reflects 
expected 
future 
inflation. 
The 
present 
value 
of 
these 
costs 
was 
calculated 
using 
a 
discount 
rate, 
which 
reflects the current market assessment of the time value 
of money – risk free rate (2022: 3.6 – 4.1%; 
2021: 
3%). The provision takes into 
account the estimated costs for 
the abandonment of production and 
storage 
wells 
and 
the 
costs 
of 
restoring 
the 
sites 
to 
their 
original 
condition. 
SPP 
Storage, 
s.r.o. 
prepared 
new 
estimated costs for abandonment and restoration in 2022. These costs are expected to be incurred between 
2034 and 2091. 
The Group uses stress tests in the form of expected costs, inflation and discount rate shocks, i.e. simulated 
immediate increase/decrease 
of expected 
costs by 
10% and 
increases in 
inflation or 
the discount 
rate by 
1%. 
At 
the 
reporting 
date, 
a 
change 
of 
10% 
in 
the 
expected 
costs 
would 
have 
increased 
or 
decreased 
the 
provision for asset retirement obligations by the amounts shown in the table below. This analysis assumes 
that all other variables remain constant. 

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
84 

            
                  
                        At the reporting date, an increase 
of 1% in the inflation or 
discount rate, or a 10% change 
in the expected 
costs of decommissioning, 
would have increased 
or decreased 
the provision 
for asset retirement 
obligations 
by the amounts shown in the table below. This analysis assumes that all other variables remain constant.

                      

                

          

            
                  
                        In millions of EUR 
2022 
2021 
Profit (loss) 
Profit (loss) 
Decrease of expected cost of 10% 
17 
18 
Increase of expected costs of 10% 
(17) 
(18) 
Increase of inflation rate of 1% 
(37) 
(44) 
Increase of discount rate of 1% 
28 
32

                      

                

          

            
                  
                        26. 
Deferred income 
In millions of EUR 
31 December 2022 
31 December 2021 
Government grants 
88 
92 
Other deferred income 
15 
19 
Total 
103 
111 
Non-current 
83 
94 
Current 
20 
17 
Total 
103 
111

                      

                

          

            
                  
                        Balance of government grants in amount 
of EUR 88 million (2021: EUR 
92 million) is mainly represented 
by eustream, a.s. of 
EUR 54 million 
(2021: EUR 58 million), 
Elektrárny Opatovice, a.s. 
of EUR 15 
million 
and 
EOP 
Distribuce, 
a.s. 
of 
EUR 
4 
million 
(2021: 
EUR 
20 
million 
Elektrárny 
Opatovice, 
a.s. 
before 
demerger), Severočeská 
teplárenská, a.s. 
of EUR 
7 million 
(2021: EUR 
7 million) 
and Plzeňská 
teplárenská, 
a.s. of EUR 4 million (2021: EUR 2 million). 
Balance 
of 
government 
grants 
recognised 
by 
eustream 
are 
primarily 
represented 
by 
subsidies 
from 
the 
European Commission relating to projects such as interconnection pipelines between Poland and Slovakia 
or Hungary and Slovakia. 
Elektrárny Opatovice, a.s./EOP Distribuce, a.s. were provided with government grants to reduce emission 
pollutions. Deferred income 
is released 
in the 
income statement 
on a 
straight-line basis 
in the 
amount of 
depreciation charges 
of non-current 
tangible assets 
constructed and 
is recognised 
as other 
operating income.

                      
Balance of other deferred 
income in amount of EUR 
15 million (2021: EUR 
19 million) consists mainly of 
deferred income 
recognized by 
EP Cargo 
a.s. in 
the amount 
of EUR 
9 million 
(2021: EUR 
11 
million), 
which 
represents 
compensation 
raised 
from 
a 
business 
partner 
from 
an 
unrealized 
business 
case. 
The 
compensation 
covers 
capitalized 
additional 
investment 
costs 
and 
expected 
losses 
from 
a 
previously 
concluded rent contract. Because the 
losses from the rent contract 
occur over duration of the 
contract and 
because the 
capitalized costs 
are depreciated 
over time, 
the compensation 
is also 
recognized in 
revenues 
over time.

                

          
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
85 

            
                  
                        
                              
                                    
                                          
                                                27. 
Financial instruments 
Financial instruments and other financial assets 
In millions of EUR 
31 December 2022 
31 December 2021 
Assets carried at amortized cost 
Loans to other than credit institutions 
6 
32 
of which receivables from related 
parties 
- 
4 
Total 
6 
32 
Assets carried at fair value 
Hedging: 
of which
115 
228 
Commodity derivatives cash flow hedge
(1)
111 
228 
Interest rate swaps cash flow hedge 
4 
- 
Non-hedging:
of which
88 
6 
Interest rate swaps reported as trading 
84 
- 
Commodity derivatives reported as trading 
- 
4 
Currency derivatives reported as trading 
4 
2 
Equity instruments at fair value through OCI: 
of which 
18 
15 
Shares and interim certificates at fair value through 
OCI 
18 
15 
Total 
221 
249 
Non-current 
69 
41 
of which owed by other Group related companies 
- 
4 
Current 
158 
240 
Total 
227 
281 
Financial instruments and other financial liabilities 
In millions of EUR 
31 December 2022 
31 December 2021 
Liabilities carried at fair value 
Hedging: 
of which
618 
722 
Interest rate swaps cash flow hedge 
- 
3 
Commodity derivatives cash flow hedge
(1)
611 
716 
Currency derivatives cash flow hedge 
7 
3 
Non-hedging:
of which
3 
134 
Interest rate swaps reported as trading 
- 
130 
Commodity derivates reported as trading 
2 
4 
Currency derivatives reported as trading 
1 
- 
Total 
621 
856 
Non-current 
44 
182 
Current 
577 
674 
Total 
621 
856 
(1) Commodity derivatives designated as cash flow hedges primarily relate to forwards for sale/purchase of electricity and 
gas which EP ENERGY TRADING, a.s. used to hedge the cash flows arising from purchase and from sale of electricity and 
gas, as part of its activities as supplier of electricity and gas to final customers. The effectiveness of the hedging relationship 
is typically assessed by comparison of hedged volume to actual volumes sourced or delivered. Additionally, eustream, 
a.s. is 
active in hedging cash inflows predominantly from gas-in-kind received from 
shippers. eustream, a.s. regularly performs 
estimations of the surplus of natural gas from received gas-in-kind and might enter into short and mid-term commodity swaps 
in order to hedge its natural gas selling prices.

                                              

                                        

                                  

                            

                      

                

          

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
86 

            
                  
                        
                              
                                    
                                          
                                                
                                                      
                                                            Fair values and respective nominal amounts of derivatives are disclosed 
in the following table: 
In millions of EUR 
31 December 
2022 
31 December 
2022 
31 December 
2022 
31 December 
2022 
Notional amount 
buy 
Notional amount 
sell 
Positive fair 
value 
Negative fair 
value 
Hedging: 
of which
1,079 
(1,311) 
115 
(618) 
Interest rate swaps cash flow hedge 
80 
(76) 
4 
- 
Commodity derivatives cash flow hedge 
799 
(1,023) 
111 
(611) 
Currency derivatives cash flow hedge 
200 
(212) 
- 
(7) 
Non-hedging:
of which
1,512 
(1,510) 
88 
(3) 
Interest rate swaps reported as trading 
1,210 
(1,210) 
84 
- 
Commodity derivatives reported as 
trading 
5 
(6) 
- 
(2) 
Currency derivatives reported as trading 
297 
(294) 
4 
(1) 
Total 
2,591 
(2,821) 
203 
(621) 
In millions of EUR 
31 December 
2021 
31 December 
2021 
31 December 
2021 
31 December 
2021 
Notional amount 
buy 
Notional amount 
sell 
Positive fair 
value 
Negative fair 
value 
Hedging: 
of which
1,117 
(1,669) 
228 
(722) 
Interest rate swaps cash flow hedge 
24 
(27) 
- 
(3) 
Commodity derivatives cash flow hedge 
978 
(1,521) 
228 
(716) 
Currency derivatives cash flow hedge 
115 
(121) 
- 
(3) 
Non-hedging:
of which
1,783 
(1,830) 
6 
(134) 
Interest rate swaps reported as trading 
1,710 
(1,760) 
- 
(130) 
Commodity derivatives reported as 
trading 
12 
(12) 
4 
(4) 
Currency derivatives reported as trading 
61 
(58) 
2 
- 
Total 
2,900 
(3,499) 
234 
(856)

                                                          

                                                    

                                              

                                        

                                  

                            

                      

                

          

            
                  
                        
                              
                                    
                                          
                                                Swap derivatives are 
recognised in respect 
of interest rate 
swaps as described 
in detail in 
Note 31 – 
Risk 
management policies and disclosures. 
Commodity derivatives are recognised in respect 
of contracts for purchase and 
sale of electricity and gas, 
which are 
denominated in 
CZK and 
EUR with 
maturity up 
and over 
one year 
and where 
the contractual 
condition of derivatives does not meet the “own use exemption” as noted 
in IFRS 9.

                                              
 
Sensitivity analysis 
relating to 
the fair 
values of 
financial instruments 
is included 
in the 
Note 31 
– Risk 
management policies and disclosures. 
Fair value hierarchy for financial instruments carried at fair value 
In general, 
financial instruments 
carried at 
fair value 
are measured 
based on 
quoted market 
prices at 
the 
reporting date. If 
the market for 
a financial instrument 
is not active, 
fair value is 
established using valuation 
techniques. 
In 
applying 
valuation 
techniques, 
management 
uses 
estimates 
and 
assumptions 
that 
are 
consistent with available information that market participants would use in setting a price for the financial 
instrument. 
The table 
below analyses 
financial instruments 
carried at 
fair value, 
by valuation 
method. The 
different 
levels have been defined as follows: 
●
Level 1: quoted prices (unadjusted) in active markets for identical assets 
or liabilities; 
●
Level 2: 
are observable 
on the 
market for 
the asset 
or liability, 
either directly 
(i.e. as 
prices) or 
indirectly (i.e. derived from prices); 

                                        

                                  

                            

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
87 

            
                  
                        
                              
                                    
                                          ●
Level 3: inputs 
for the asset 
or liability that 
are not based 
on observable market 
data (unobservable 
inputs).

                                        

                                  

                            

                      

                

          
 

            
                  
                        
                              
                                    
                                          
                                                
                                                      
                                                            31 December 2022 
In millions of EUR 
Level 1 
Level 2 
Level 3 
Total 
Financial assets carried at fair value: 
Hedging: 
of which
- 
115 
- 
115 
Commodity derivatives cash flow hedge 
- 
111 
- 
111 
Interest rate swaps cash flow hedge 
4 
4 
Non-hedging:
of which
- 
88 
- 
88 
Interest rate swaps reported as trading 
84 
84 
Currency derivatives reported as trading 
- 
4 
- 
4 
Equity instruments at fair value through 
OCI: 
of which 
- 
- 
18 
18 
Shares and interim certificates at fair 
value through OCI 
- 
- 
18 
18 
Total 
- 
203 
18 
221 
Financial liabilities carried at fair value: 
Hedging: 
of which
- 
618 
- 
618 
Commodity derivatives cash flow hedge 
- 
611 
- 
611 
Currency derivatives cash flow hedge 
- 
7 
- 
7 
Non-hedging:
of which
- 
3 
- 
3 
Commodity derivates reported as trading 
- 
2 
- 
2 
Currency derivatives reported as trading 
1 
1 
Total 
- 
621 
- 
621 
31 December 2021 
Financial assets carried at fair value: 
Hedging:
of which
- 
228 
- 
228 
Commodity derivatives cash flow hedge 
- 
228 
- 
228 
Non-hedging:
of which
- 
6 
- 
6 
Currency derivatives reported as trading 
- 
2 
- 
2 
Commodity derivatives reported as trading 
- 
4 
- 
4 
Equity instruments at fair value through 
OCI
:
of which
- 
- 
15 
15 
Shares and interim certificates at fair 
value through OCI 
- 
- 
15 
15 
Total 
- 
234 
15 
249 
Financial liabilities carried at fair value: 
Hedging:
 
of which
- 
722 
- 
722 
Interest rate swaps cash flow hedge 
- 
3 
- 
3 
Commodity derivatives cash flow hedge 
- 
716 
- 
716 
Currency derivatives cash flow hedge 
- 
3 
- 
3 
Non-hedging:
of which
- 
134 
- 
134 
Interest rate swaps reported as trading 
- 
130 
- 
130 
Commodity derivatives reported as trading 
- 
4 
- 
4 
Total 
- 
856 
- 
856

                                                          

                                                    

                                              

                                        

                                  

                            

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
88 

            
                  
                        
                              The fair value of financial instruments held at amortised costs is shown 
in the table below: 
In millions of EUR 
31 December 
2022 
31 December 
2022 
31 December 
2021 
31 December 
2021 
Carrying value 
Fair value 
Carrying value 
Fair value 
Financial assets 
Loans to other than credit institutions 
6 
6 
32 
32 
Financial liabilities 
Loans and borrowings 
4,629 
3,846 
4,141 
4,267 
* 
The fair value of trade receivables and other receivables and trade payables 
and other liabilities equal to its 
carrying amount.

                            

                      

                

          

            
                  
                        All financial instruments held at amortised costs are categorised within Level 2 of the fair value hierarchy 
(for detail of valuation methods refer to Note 2 (d) i – Assumption and 
estimation uncertainties).

                      
Transactions with emission rights 
The following information pertains to 
contracts on delivery or sale 
of emission rights. These contracts 
do 
not 
meet 
the 
IFRS 
9 
criteria 
for 
derivatives 
(refer 
to 
Note 
3(f) 
– 
Derivative 
financial 
instruments 
– 
Transactions with emission rights and energy) and are reported as off-balance sheet items, not derivatives. 
The management 
carefully assessed 
conditions of 
the contracts 
and concluded 
that all 
contracts are 
intended 
to be settled via physical 
delivery needed for consumption or physically delivered quantities 
shall be sold 
as part of its ordinary business, therefore the contracts are not reported 
as derivatives. 
Forward operations 
As at 31 
December 2022 the Group 
is contractually obliged to 
forward purchase 2,579,000 pieces 
(2021: 
3,014,000 pieces) 
of emission rights 
at an 
average price 85.17 
EUR/piece (2021: 61.16 
EUR/piece) with 
delivery in 2023 and 2024.

                

          
 

            
                  
                        
                              
                                    28. 
Trade payables 
and other liabilities 
In millions of EUR 
31 December 2022 
31 December 2021 
Trade payables 
219 
156 
Received guarantees 
103 
27 
Estimated payables 
69 
56 
Payroll liabilities 
51 
47 
Other tax liabilities 
47 
16 
Uninvoiced supplies 
31 
31 
Accrued expenses 
- 
1 
Advance payments received 
2 
1 
Liabilities to partners and associations 
1 
1 
Other liabilities 
70 
49 
Total 
593 
385 
Non-current 
2 
3 
Current 
591 
382 
Total 
593 
385

                                  

                            

                      

                

          

            
                  
                        
                              Trade payables and other liabilities 
have not been 
secured as at 31 
December 2022 and 
31 December 2021. 

                                    As at 31 December 2022 and 
2021 the fair value of trade 
payables and other liabilities equal 
to its carrying 
amount.

                                  
 
The 
Group’s 
exposure 
to 
currency 
and 
liquidity 
risk 
related 
to 
trade 
payables 
and 
other 
liabilities 
is 
disclosed in Note 31 – Risk management policies.

                            

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
89 

            
                  
                        
                              
                                    29. 
Commitments and contingencies 
Off balance sheet liabilities 
In millions of EUR 
31 December 2022 
31 December 2021 
Commitments 
1,443 
726 
Other granted guarantees and warranties 
32 
19 
Total 
1,475 
745

                                  

                            

                      

                

          

            
                  
                        
                              Commitments 
Majority of 
commitments is 
represented by 
contracts to 
purchase physical 
energy 
in following 
years by 
SSEH Group 
in amount 
of EUR 
1,368 million 
(2021: 
EUR 615 
million), where 
physical delivery 
of the 
energy will be realised in future, majority of which in 2023. Year on year increase in commitment value is 
primarily 
driven by 
the 
price effect. 
Further, 
commitments are 
represented by 
contracts 
for purchase 
of 
non-current assets 
of EUR 
19 million 
(2021: 
EUR 17 
million) recognised 
by SSE 
Group and 
EUR 8 
million 
(2021: EUR 25 million) 
recognised by eustream. Remaining 
EUR 48 million (2021: 
EUR 69 million) arise 
from different type of service contracts.

                            

                      

                

          

            
                  
                        
                              Off balance sheet asset 
In millions of EUR 
31 December 2022 
31 December 2021 
Received promises 
1,647 
1,440 
Other received guarantees and warranties 
234 
260 
Total 
1,881 
1,700

                            

                      

                

          

            
                  
                        
                              Received promises 
Received promises mainly comprise 
the loan commitments received 
by the various companies 
within the 
Group in amount of EUR 398 million 
(2021: EUR 853 million). Contracts for the future 
sale of energy in 
amount of EUR 1,249 million (2021: EUR 587 million).

                            
 
Other received guarantees and warranties 
Other received guarantees 
and warranties mainly 
consist of third 
party parent company 
guarantees in the 
amount of EUR 193 
million (2021: EUR 100 
million) recognised by eustream, a.s. 
and SPP - distribúcia, 
a.s. and bank guarantees of EUR 41 million (2021: EUR 160 million) 
recognised by NAFTA a.s.

                      

                

          

            
                  30. 
Leases

                

                  (a)
Leases as a lessee
The Group leases namely buildings, 
pipelines, locomotives and wagons 
and personal cars. The leases 
have 
various lease 
terms and 
run under various 
period of 
time. For some 
leases, the Group 
has an option 
to renew 
the lease after the end of the lease term. 
The Group has elected 
not to recognise 
right-of-use assets and 
lease liabilities for 
some leases of 
low-value 
assets and 
short-term leases (lease 
term 12 months 
or shorter). The 
Group recognises the 
lease payments 
associated with these leases as an expense. 
Right-of-use assets 
Right-of-use assets related to leased land and buildings and technical equipment, plant and machinery 
that 
do not meet the definition of 
investment property are presented as property, 
plant and equipment (refer to 
Note 16).

                

          
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
90 

            
                  
                        In millions of EUR 
Land and 
building 
Technical 
equipment, plant 
and machinery 
Total 
Balance at 1 January 2022 
32 
28 
60 
Depreciation charge for the year 
(5) 
(9) 
(14) 
Additions to right-of-use assets 
3 
14 
17 
Disposals 
- 
(1) 
(1) 
Effects of movements in foreign exchange rate 
- 
1 
1 
Balance at 31 December 2022 
30 
33 
63 
Balance at 1 January 2021 
27 
30 
57 
Depreciation charge for the year 
(5) 
(9) 
(14) 
Additions to right-of-use assets 
10 
6 
16 
Effects of movements in foreign exchange rate 
- 
1 
1 
Balance at 31 December 2021 
32 
28 
60

                      

                

          

            
                  Maturity analysis of lease liabilities 
In millions of EUR 
31 December 2022 
31 December 2021 
Undiscounted contractual cash flows by maturity 
Up to 3 months 
1 
1 
3 months to 1 year 
13 
11 
1–5 years 
40 
41 
Over 5 years 
11 
10 
Total undiscounted 
contractual cash flows 
65 
63 
Carrying amount 
65 
62 
Amounts recognized in profit or loss 
In millions of EUR 
2022 
2021 
Depreciation charge for the year 
(14) 
(14) 
Interest on lease liabilities 
(2) 
(1) 
Expenses related to short-term leases 
(10) 
(2) 
Expenses related to leases of low-value assets, excluding short-term 
leases of low-value assets 
- 
(1) 
Amounts recognized in statement of cash flows 
In millions of EUR 
2022 
2021 
Total cash outflow for leases 
(12) 
(14)

                

          

            
                  (b) 
Leases as a lessor
Operating leases
During the year 
ended 31 December 
2022, EUR 
7 million (2021: 
EUR 8 
million) was recognised 
as income 
in profit or loss in respect of operating leases.

                

          

            
                  31. 
Risk management 
This 
section 
provides 
details 
of 
the 
Group’s 
exposure 
to 
financial 
and 
operational 
risks 
and 
the 
way 
it 
manages such risks. The 
most important types of 
financial risks to which 
the Group is 
exposed are credit 
risk, liquidity risk, interest rate, commodity price risk, foreign exchange 
risk and concentration risk. 
As 
part 
of 
its operations, 
the 
Group is 
exposed to 
different 
market risks, 
notably the 
risk of 
changes in 
interest 
rates, 
exchange 
rates 
and 
commodity 
prices. 
To 
minimise 
this 
exposure, 
the 
Group 
enters 
into 
derivatives contracts 
to 
mitigate or 
manage the 
risks associated 
with individual 
transactions and 
overall 
exposures, using instruments available on the market. 

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
91 

            
                  
                        
                              (a
) 
Credit risk 
i.
Exposure to credit risk 
Credit risk is the risk of financial loss to 
the Group if a customer or counterparty to a 
financial instrument 
fails to meet 
its contractual 
obligations, and arises 
principally from 
the Group’s receivables 
from customers 
and loans and advances. 
The Group 
has established 
a credit 
policy under 
which each 
new customer 
requesting products/services 
over a 
certain limit 
(which is 
based on 
the size 
and nature 
of the 
particular business) 
is analysed 
individually 
for creditworthiness before 
the Group’s 
standard payment and 
delivery terms and 
conditions are 
offered. 
The 
Group 
uses 
credit 
databases 
for 
analysis 
of 
creditworthiness 
of 
new 
customers 
and 
after 
deemed 
creditworthy they 
are also 
subject to 
Risk committee 
approval. The 
Group’s policy 
is also 
to require 
suitable 
collateral 
to 
be 
provided 
by 
customers 
such 
as 
a 
bank 
guarantee 
or 
a 
parent 
company 
guarantee. 
The 
exposure to credit risk is monitored on an ongoing basis. 
Additional aspects mitigating credit risk 
The Group operates 
mainly as an energy and 
power distribution company, and thus 
has a specific customer 
structure. 
The 
distribution 
companies 
represent 
a 
comparatively 
low 
credit 
risk. 
The 
large 
clients 
are 
dependent 
upon 
electricity 
supplies 
which 
significantly 
mitigates 
the 
credit 
risks. 
In 
addition, 
bank 
guarantees and 
advance payments 
are required 
before active 
operation with 
traders. Previous 
experience 
shows that such elements are 
very favourable in terms of 
credit risk mitigation. Customers of distribution 
and supply 
segment and 
of Heat 
Infra segment 
are required 
to 
pay prepayments 
which further 
decrease 
credit risk. 
The carrying amount of financial 
assets (plus guarantees issued) represents the 
maximum credit exposure 
if 
counterparties fail 
to 
carry 
out 
completely their 
contractual 
obligations 
and 
any 
collateral 
or 
security 
proves to be of no value. The maximum 
credit exposure amounts disclosed below 
therefore greatly exceed 
expected losses, which are included in the allowance for impairment. 
The Group establishes 
an allowance for 
impairment that represents 
its estimate of 
expected credit losses. 
The Group measures loss allowances at an amount 
equal to lifetime ECLs except for those financial assets 
for 
which 
credit 
risk 
has 
not 
increased 
significantly 
since 
initial 
recognition. 
For 
trade 
receivables 
and 
contract assets, the Group has elected to measure loss allowances at an amount 
equal to lifetime ECLs. 
At the reporting date, the maximum exposure to credit risk 
by the type of counterparty and by geographic 
region is provided in the following tables.

                            

                      

                

          

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
92 

            
                  
                        
                              Credit risk by type of counterparty 
As at 31 December 2022 
In millions of EUR 
Corporate 
(non-
financial 
institutions) 
State, 
government 
Financial 
institutions 
Banks 
Other 
Total 
Assets 
Cash and cash equivalents 
- 
- 
- 
1,548 
- 
1,548 
Restricted cash 
- 
- 
- 
2 
- 
2 
Contract assets 
101 
- 
- 
- 
- 
101 
Trade receivables and other 
assets 
679 
78 
1 
5 
34 
797 
Financial instruments and other 
financial assets 
137 
- 
- 
90 
- 
227 
Total 
917 
78 
1 
1,645 
34 
2,675 
As at 31 December 2021 
In millions of EUR 
Corporate 
(non-
financial 
institutions) 
State, 
government 
Financial 
institutions 
Banks 
Other 
Total 
Assets 
Cash and cash equivalents 
- 
- 
- 
501 
- 
501 
Restricted cash 
- 
- 
- 
2 
- 
2 
Contract assets 
36 
- 
- 
- 
- 
36 
Trade receivables and other 
assets 
340 
108 
- 
2 
18 
468 
Financial instruments and other 
financial assets 
279 
- 
- 
2 
- 
281 
Total 
655 
108 
- 
507 
18 
1,288

                            

                      

                

          

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
93 

            
                  
                        
                              As at 31 December 2022 
In millions of EUR 
Slovakia 
Czech 
Republic 
United 
Kingdom 
Netherlands 
Germany 
Hungary 
Other 
Total 
Assets 
Cash and cash equivalents 
823 
656 
- 
6 
44 
19 
- 
1,548 
Restricted cash 
- 
2 
- 
- 
- 
- 
- 
2 
Contract assets 
55 
20 
1 
- 
- 
2 
23 
101 
Trade receivables and other assets 
228 
207 
4 
- 
11 
4 
343 
797 
Financial instruments and other financial assets 
22 
190 
8 
- 
- 
- 
7 
227 
Total 
1,128 
1,075 
13 
6 
55 
25 
373 
2,675 
As at 31 December 2021 
In millions of EUR 
Slovakia 
Czech 
Republic 
United 
Kingdom 
Netherlands 
Germany 
Hungary 
Other 
Total 
Assets 
Cash and cash equivalents 
254 
216 
- 
5 
24 
1 
1 
501 
Restricted cash 
- 
2 
- 
- 
- 
- 
- 
2 
Contract assets 
23 
13 
- 
- 
- 
- 
- 
36 
Trade receivables and other assets 
201 
211 
2 
- 
7 
3 
44 
468 
Financial instruments and other financial assets 
2 
245 
- 
- 
- 
27 
7 
281 
Total 
480 
687 
2 
5 
31 
31 
52 
1,288

                            

                      

                

          

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
94 

            
                  
                        
                              
                                    ii. Impairment losses 
Loss allowances are measured on either of the following bases: 
●
12-month ECLs: these 
are ECLs that 
result from possible default 
events within the 
12 months after 
the reporting date 
●
Lifetime ECLs: these are 
ECLs that result from 
all possible default events 
over the expected 
life of 
a financial instrument. 
The Group measures loss allowances at an amount 
equal to lifetime ECLs except for those financial assets 
for which credit risk has not increased significantly since initial recognition. 
The ECL model is based on the principle of expected credit losses. For the purposes of designing 
the ECL 
model, 
the 
portfolio 
of 
financial 
assets 
is 
split 
into 
segments. 
Financial 
assets 
within 
each 
segment 
are 
allocated to three stages (Stage I – 
III) or to a group of financial 
assets that are impaired at the date 
of the 
first recognition purchase or originated credit-impaired financial assets (“POCI”). At the date of 
the initial 
recognition, the assets 
is include in 
Stage I or 
POCI. Subsequent allocation to 
stages is as 
follows: assets 
with 
significant 
increase 
in 
credit 
risk 
(SICR) 
since 
initial 
recognition 
(Stage 
II), 
respectively 
credit 
impaired assets (Stage III). 
The Group 
has elected to 
measure loss allowances 
for trade receivables 
and contract assets 
at an 
amount 
equal to lifetime ECLs. For more details see note 3(d). 
Credit risk – impairment of financial assets 
The following table provides information about the changes in 
the loss allowance during the period.

                                  

                            

                      

                

          
 

            
                  
                        
                              
                                    In millions of EUR 
12-month 
ECL 
Lifetime 
ECL not 
credit-
impaired 
Lifetime 
ECL 
credit-
impaired 
Purchased 
credit-
impaired 
Total 
Balance at 1 January 2022 
(7) 
(7) 
(31) 
- 
(45) 
Impairment losses recognised during the year 
(3) 
(1) 
(1) 
- 
(5) 
Reversal of impairment losses recognised during 
the year 
5 
2 
- 
- 
7 
Effects of movements in foreign exchange rate 
(1) 
1 
1 
- 
1 
Balance at 31 December 2022 
(6) 
(5) 
(31) 
- 
(42) 
In millions of EUR 
12-month 
ECL 
Lifetime 
ECL not 
credit-
impaired 
Lifetime 
ECL 
credit-
impaired 
Purchased 
credit-
impaired 
Total 
Balance at 1 January 2021 
- 
(6) 
(23) 
- 
(29) 
Impairment losses recognised during the year 
(6) 
(1) 
(12) 
- 
(19) 
Reversal of impairment losses recognised during 
the year 
- 
- 
2 
- 
2 
Write-offs 
- 
- 
2 
- 
2 
Balance at 31 December 2021 
(7) 
(7) 
(31) 
- 
(45)

                                  

                            

                      

                

          

            
                  
                        
                              
                                    The 
most 
significant 
changes 
which 
contributed to 
change 
in 
the 
loss 
allowance during 
the 
period 
was 
write-off of the financial assets and change in the gross carrying amount of trade receivables. 
The movements 
in the 
allowance for 
impairment in 
respect of 
financial assets 
during the 
year ended 
31 
December 2022 and 2021 were as follows:

                                  

                            

                      

                

          

            
                  
                        
                              
                                    In millions of EUR 
Loans to other 
than credit 
institutions 
Contract 
assets 
Trade 
receivables 
and other 
assets 
Total 

                                  

                            

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
95 

            
                  
                        
                              
                                    Balance at 1 January 2022 
(14) 
- 
(31) 
(45) 
Impairment losses recognised during the year 
(2) 
- 
(3) 
(5) 
Reversals of impairment losses recognised during 
the year 
6 
- 
1 
7 
Effects of movements in foreign exchange rate 
- 
(1) 
2 
1 
Balance at 31 December 2022 
(10) 
(1) 
(31) 
(42) 
In millions of EUR 
Loans to other 
than credit 
institutions 
Contract 
assets 
Trade 
receivables 
and other 
assets 
Total 
Balance at 1 January 2021 
(6) 
- 
(23) 
(29) 
Impairment losses recognised during the year 
(7) 
- 
(12) 
(19) 
Reversals of impairment losses recognised during 
the year 
- 
- 
2 
2 
Write-offs 
- 
- 
2 
2 
Effects of movements in foreign exchange rate 
(1) 
- 
- 
(1) 
Balance at 31 December 2021 
(14) 
- 
(31) 
(45)

                                  

                            

                      

                

          

            
                  
                        
                              
                                    Credit risk – impairment of financial assets 
As at 31 December 2022 
In millions of EUR 
Contract 
assets 
Loans to other 
than credit 
institutions 
Trade 
receivables 
and other 
assets 
Total 
Before maturity (net) 
101 
6 
783 
890 
After maturity (net) 
- 
- 
14 
14 
Total 
101 
6 
797 
904 
A 
– Assets (gross) 
 
- before maturity 
101 
16 
786 
903 
 
- after maturity <30 days 
- 
- 
9 
9 
 
- after maturity 31–180 days 
- 
- 
5 
5 
 
- after maturity 181–365 days 
- 
- 
4 
4 
 
- after maturity >365 days 
1 
- 
24 
25 
Total assets (gross) 
102 
16 
828 
946 
B – Loss allowances for assets 
 
- before maturity 
- 
(10) 
(4) 
(14) 
 
- after maturity 31–180 days 
- 
- 
(2) 
(2) 
 
- after maturity 181–365 days 
- 
- 
(3) 
(3) 
 
- after maturity >365 days 
(1) 
- 
(22) 
(23) 
Total loss 
allowances 
(1) 
(10) 
(31) 
(42) 
Total assets (net) 
101 
6 
797 
904

                                  

                            

                      

                

          

 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
96 

            
                  
                        
                              
                                    Credit risk – impairment of financial assets 
As at 31 December 2021 
In millions of EUR 
Contract 
assets 
Loans to other 
than credit 
institutions 
Trade 
receivables 
and other 
assets 
Total 
Before maturity (net) 
36 
32 
442 
510 
After maturity (net) 
- 
- 
26 
26 
Total 
36 
32 
468 
536 
A 
– Assets (gross) 
 
- before maturity 
36 
46 
447 
529 
 
- after maturity <30 days 
- 
- 
25 
25 
 
- after maturity 31–180 days 
- 
- 
5 
5 
 
- after maturity 181–365 days 
- 
- 
7 
7 
 
- after maturity >365 days 
- 
- 
15 
15 
Total assets (gross) 
36 
46 
499 
581 
B – Loss allowances for assets 
 
- before maturity 
- 
(14) 
(5) 
(19) 
 
- after maturity <30 days 
- 
- 
- 
- 
 
- after maturity 31–180 days 
- 
- 
(4) 
(4) 
 
- after maturity 181–365 days 
- 
- 
(7) 
(7) 
 
- after maturity >365 days 
- 
- 
(15) 
(15) 
Total loss 
allowances 
- 
(14) 
(31) 
(45) 
Total assets (net) 
36 
32 
468 
536

                                  

                            

                      

                

          

            
                  
                        
                              
                                    Impairment losses 
on financial 
assets at 
amortized cost 
are calculated 
based on 
a 3-stage 
model. Impairment 
losses from 
credit impaired 
financial assets 
relate either 
to trade 
receivables due 
from several 
customers 
which have already been impaired at the date of the application 
of a 3-stage model or to receivables where 
events 
that 
have 
a 
detrimental 
impact 
on 
the 
estimated 
future 
cash 
flows 
of 
the 
asset 
have 
occurred. 
Remaining amount of impairment losses represents loss allowances at an 
amount equal to expected credit 
losses. 
Group 
calculates a 
collective loss 
allowance for 
trade receivables 
on the 
basis 
of 
a simplified 
approach 
based on historical provision matrix. Probability of default is taken 
from a historical provision matrix (set 
up separately by 
each component) 
with element 
of forward-looking 
information (the 
group incorporates 
the 
following forward-looking information: 
GDP growth, unemployment 
rate, interest 
rates, change 
in stock 
market index). The resulting collective loss allowance was not significant 
as at 31 December 2022. 
The allowance for impairment in respect of financial assets is 
used to record impairment losses unless the 
Group is satisfied that 
no recovery of 
the amount owed 
is possible; at that 
point the amounts are 
considered 
irrecoverable and are written off against the financial asset directly. 
The Group assessed the need to create a credit loss allowance for receivables due from banks (included in 
the item cash and cash equivalents) and concluded that the resulting provision would 
be negligible.

                                  

                            

                      

                

          

            
                  
                        
                              (b) 
Liquidity risk 
Liquidity risk 
is the 
risk that 
the Group 
will encounter 
difficulties in 
meeting the 
obligations associated 
with its financial 
liabilities that are 
settled by delivering cash 
or another financial asset. 
Various 
methods 
of managing liquidity risk are used by individual companies in the 
Group. 
The Group’s management focuses on methods used by financial institutions, i.e. diversification of sources 
of funds. This diversification makes the Group flexible and limits 
its dependency on one financing source. 
Liquidity risk is evaluated in particular by monitoring 
changes in the structure of financing and comparing 
these changes with the 
Group’s liquidity 
risk management strategy. 
The Group also holds, 
as a part of 
its 
liquidity risk management strategy, a portion of its assets in highly liquid funds. 

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
97 

            
                  
                        
                              Typically the Group ensures that it has sufficient cash on demand and assets within short maturity to meet 
expected 
operational 
expenses 
for 
a 
period 
of 
90 
days, 
including 
servicing 
financial 
obligations; 
this 
excludes the potential 
impact of extreme 
circumstances that 
cannot reasonably 
be predicted, 
such as natural 
disasters. 
The table 
below provides 
an analysis 
of financial 
liabilities by 
relevant maturity 
groupings based 
on the 
remaining period 
from the 
reporting date 
to the 
contractual maturity 
date. It 
is presented 
under the 
most 
prudent consideration of 
maturity dates where 
options or repayment 
schedules allow for 
early repayment 
possibilities. Therefore, 
in the 
case of 
liabilities, the 
earliest required 
repayment date 
is shown 
while for 
assets 
the 
latest 
possible 
repayment 
date 
is 
disclosed. 
Those 
liabilities 
that 
do 
not 
have 
a 
contractual 
maturity date are grouped together in the “undefined maturity” category.

                            

                      

                

          

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
98 

            
                  
                        
                              Maturities of financial liabilities 
As at 31 December 2022 
In millions of EUR 
Carrying 
amount 
Contractual 
cash flows
(1)
Up to 3 months 
3 months to 1 
year 
1–5 years 
Over 5 years 
Liabilities 
Loans and borrowings 
(2)
4,629 
4,857 
9 
94 
3,140 
1,614 
Trade payables and other liabilities 
(3)
591 
591 
557 
32 
2 
- 
Financial instruments and financial liabilities 
621 
621 
51 
526 
44 
- 
Total 
5,841 
6,069 
617 
652 
3,186 
1,614 
Net liquidity risk position 
(3,352) 
(3,580) 
1,143 
(19) 
(3,093) 
(1,611) 
* 
Contract liabilities in the amount of EUR 171 million are not shown in the table above as these items are not expected to cause any future cash outflow. 
(1)
 
Contractual cash flows disregard discounting to net present value and include potential future 
interest. 
(2)
 
The Group has available committed undrawn term facilities and revolving facilities in the amount of EUR 395 million. 
(3)
 
Advances received in the amount of EUR 2 million are excluded from the carrying amount as these items will cause no future cash outflow. 
As at 31 December 2021 
In millions of EUR 
Carrying 
amount 
Contractual 
cash flows
(1)
Up to 3 months 
3 months to 1 
year 
1–5 years 
Over 5 years 
Liabilities 
Loans and borrowings 
(2)
4,141 
4,340 
43 
40 
2,081 
2,176 
Trade payables and other liabilities 
(3)
384 
384 
332 
50 
2 
- 
Financial instruments and financial liabilities 
856 
856 
135 
448 
273 
- 
Total 
5,381 
5,580 
510 
538 
2,356 
2,176 
Net liquidity risk position 
(4,209) 
(4,408) 
374 
(306) 
(2,303) 
(2,174) 
* 
Contract liabilities in the amount of EUR 156 million are not shown in the table above as these items are not expected to cause any future cash outflow. 
(1) 
Contractual cash flows disregard discounting to net present value and include potential future interest. 
(2) 
The Group has available committed undrawn term facilities and revolving facilities in the amount of EUR 853 million. 
(3) 
Advances received in the amount of EUR 1 million are excluded from the carrying amount as these items will cause no future cash outflow.

                            

                      

                

          

 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
99 

            
                  
                        
                              (c) 
Interest rate risk 
The Group’s operations are subject to 
the risk of interest 
rate fluctuations to the extent 
that interest-earning 
assets 
(including 
investments) 
and 
interest-bearing liabilities 
mature 
or 
re-price 
at 
different 
times 
or 
in 
differing 
amounts. 
The 
length 
of 
time 
for 
which 
the 
rate 
of 
interest 
is 
fixed 
on 
a 
financial 
instrument 
therefore indicates to 
what extent it 
is exposed to 
interest rate risk. 
The table below provides 
information 
on 
the 
extent 
of 
the 
Group’s 
interest 
rate 
exposure 
based 
either 
on 
the 
contractual 
maturity 
date 
of 
its 
financial instruments or, in the case 
of instruments that re-price 
to a market rate 
of interest before maturity, 
the next re-pricing date. Those assets and liabilities that 
do not have a contractual maturity date or are 
not 
interest-bearing are grouped together in the “maturity undefined” category. 
Various 
types of derivatives are used 
to reduce the amount of debt 
exposed to interest rate fluctuations 
and 
to reduce borrowing costs and include mainly interest rate swaps. 
These contracts are normally 
agreed with a 
notional amount lower than 
or equal to 
that of the 
underlying 
financial liability and expiry date, so that any 
change in the fair value and/or expected future 
cash flows of 
these contracts is offset by 
a corresponding change in the fair 
value and/or the expected future cash flows 
from the underlying position. 
Financial information 
relating to 
interest bearing 
and non-interest 
bearing assets 
and liabilities 
and their 
contractual maturity or re-pricing dates as at 31 December 2022 is as follows:

                            

                      

                

          

            
                  
                        
                              In millions of EUR 
Up to 1 
year 
1 year to 5 
years 
Over 5 
years 
Undefined 
maturity (or 
non-interest 
bearing) 
Total 
Assets 
Cash and cash equivalents 
1,548 
- 
- 
- 
1,548 
Restricted cash 
2 
- 
- 
- 
2 
Trade receivables and other assets 
- 
- 
- 
797 
797 
Financial instruments and other financial assets
(1)
93 
3 
1 
130 
227 
Total 
1,643 
3 
1 
927 
2,574 
Liabilities 
Loans and borrowings
(2)
720 
2,402 
1,506 
1 
4,629 
Trade payables and other liabilities 
- 
- 
- 
593 
593 
Financial instruments and financial liabilities
(1)
- 
1 
- 
620 
621 
Total 
720 
2,403 
1,506 
1,214 
5,843 
Net interest rate risk position 
923 
(2,400) 
(1,505) 
(287) 
(3,269) 
Effect of interest rate swaps 
1,290 
(580) 
(710) 
- 
- 
Net interest rate risk position (incl. IRS) 
2,213 
(2,980) 
(2,215) 
(287) 
(3,269) 
(1)
 
The Group contractually agreed to swap float interest rate for a fixed rate (at some of its bank loans). 
(2)
 
Disregarding agreed 
interest rate swaps. 
Notional amounts of financial instruments are included in Note 27 – Financial 
instruments.

                            

                      

                

          

 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
100 

            
                  
                        
                              Interest rate risk exposure as at 31 December 2021 was as follows: 
In millions of EUR 
Up to 1 
year 
1 year to 5 
years 
Over 5 
years 
Undefined 
maturity (or 
non-interest 
bearing) 
Total 
Assets 
Cash and cash equivalents 
501 
- 
- 
- 
501 
Restricted cash 
2 
- 
- 
- 
2 
Trade receivables and other assets 
2 
- 
2 
464 
468 
Financial instruments and other financial assets
(1)
- 
33 
- 
248 
281 
Total 
505 
33 
2 
712 
1,252 
Liabilities 
Loans and borrowings
(2)
228 
1,901 
2,012 
- 
4,141 
Trade payables and other liabilities 
4 
- 
- 
381 
385 
Financial instruments and financial liabilities
(1)
42 
- 
- 
814 
856 
Total 
274 
1,901 
2,012 
1,195 
5,382 
Net interest rate risk position 
231 
(1,868) 
(2,010) 
(483) 
(4,130) 
Effect of interest rate swaps 
1,830 
(270) 
(1,560) 
- 
- 
Net interest rate risk position (incl. IRS) 
2,061 
(2,138) 
(3,570) 
(483) 
(4,130) 
(1)
 
The Group contractually agreed to swap float interest rate for a fixed rate (at some of its bank loans). 
(2)
 
Disregarding agreed interest 
rate swaps. 
Notional amounts of financial instruments are included in Note 27 – Financial 
instruments.

                            

                      

                

          

            
                  
                        
                              Sensitivity analysis
The Group 
performs stress 
testing using 
a standardised 
interest rate 
shock, for 
financial assets 
and liabilities 
to be 
repriced in 
up to 
1 year 
time, i.e. 
an immediate 
decrease/increase in 
interest rates 
by 1% 
along the 
whole yield curve is applied to the interest rate positions of the portfolio. 
At 
the 
reporting date, 
a change 
of 
1% 
in 
interest rates 
would 
have increased 
or decreased 
profit 
by the 
amounts 
shown 
in 
the 
table 
below. 
This 
analysis 
assumes 
that 
all 
other 
variables, 
in 
particular 
foreign 
currency rates, remain constant. 
In millions of EUR 
2022 
2021 
Profit (loss) 
Profit (loss) 
Decrease in interest rates by 1% 
(19) 
(18) 
Increase in interest rates by 1% 
19 
19

                            

                      

                

          

            
                  
                        
                              (d) 
Foreign exchange risk 
The Group takes 
on exposure 
to the effects 
of fluctuations 
in the prevailing 
foreign currency 
exchange rates 
on its financial position and cash flows. 
The Group is exposed to a currency risk on sales, purchases and services that 
are denominated in currency 
other that the respective functional currencies of Group entities, 
primarily EUR. 
Various 
types of derivatives are used 
to reduce the exchange rate risk 
on foreign currency assets, liabilities 
and expected 
future cash 
flows. These 
include forward 
exchange contracts, 
most with 
a maturity 
of less 
than one year. 
These 
contracts 
are 
also 
normally 
agreed 
with 
a 
notional 
amount 
and 
expiry 
date 
equal 
to 
that 
of 
the 
underlying financial liability or the expected future cash flows, so that 
any change in the fair value and/or 
future cash 
flows of 
these contracts 
stemming from 
a potential 
appreciation or 
depreciation of 
the functional 

                            

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
101 

            
                  
                        
                              currency against the 
foreign currencies is 
fully offset by a 
corresponding change in 
the fair value and/or 
the 
expected future cash flows of the underlying position. 
In respect of 
monetary assets and liabilities 
denominated in foreign currencies, 
the Group ensures 
that its 
net 
exposure 
is 
kept 
to 
an 
acceptable 
level 
by 
buying 
or 
selling 
foreign 
currencies 
at 
spot 
rates 
when 
necessary to address short-term imbalances on the single Companies level. 
As of 31 
December 2022 
the Group is 
exposed to foreign 
exchange risk 
when financial 
assets and liabilities 
are denominated in a currency other than the 
functional currency in which they are measured (e.g. Slovak 
entities 
holding 
CZKs). 
Assets 
and 
liabilities 
denominated 
in 
a 
currency 
different 
from 
the 
functional 
currency in which they are measured are presented in the table below:

                            

                      

                

          

            
                  
                        
                              In millions of EUR 
CZK 
USD 
EUR 
Total 
Assets 
Cash and cash equivalents 
9 
- 
205 
214 
Trade receivables and other assets 
1 
1 
95 
97 
Financial instruments and other financial assets 
3 
- 
110 
113 
13 
1 
410 
424 
Off balance sheet assets 
Receivables from derivative operations 
- 
- 
340 
340 
- 
- 
340 
340 
Liabilities 
Loans and borrowings 
- 
- 
20 
20 
Trade payables and other liabilities 
4 
4 
46 
54 
Financial instruments and financial liabilities 
- 
- 
343 
343 
4 
4 
409 
417 
Off balance sheet liabilities 
Payables related to derivative operations 
- 
- 
345 
345 
- 
- 
345 
345 
Net FX risk position 
9 
(3) 
1 
7 
Effect of forward exchange contracts 
- 
- 
(5) 
(5) 
Effect of cash flow hedge of FX risk
(1)
- 
- 
- 
- 
Net FX risk position (incl. forward exchange 
contracts and CF hedges on FX risk) 
9 
(3) 
(4) 
2 
(1)
 
The amount relates to a cash flow hedge recognized by the Group’s 
entities in its standalone financial statements.

                            

                      

                

          

            
                  
                        
                              Foreign currency denominated intercompany receivables and payables are included 
in sensitivity analysis 
for foreign exchange 
risk. These balances are 
eliminated in consolidated balance 
sheet but their 
effect on 
profit or loss of their currency revaluation 
is not fully eliminated. Therefore, the total 
amounts of exposure 
to foreign exchange risk do not equal to respective items reported on consolidated 
balance sheet. 
As of 31 
December 2021 
the Group is 
exposed to foreign 
exchange risk 
when financial 
assets and liabilities 
are denominated in a 
currency other than the 
functional currency in which 
they are measured. Assets 
and 
liabilities denominated in a 
currency different from the functional 
currency in which they 
are measured are 
presented in the table below:

                            

                      

                

          

            
                  
                        
                              In millions of EUR 
CZK 
USD 
EUR 
Total 
Assets 
Cash and cash equivalents 
- 
- 
127 
127 
Trade receivables and other assets 
- 
- 
115 
115 

                            

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
102 

            
                  
                        
                              Financial instruments and other financial assets 
- 
- 
2,042 
2,042 
- 
- 
2,284 
2,284 
Off balance sheet assets 
Receivables from derivative operations 
- 
- 
115 
115 
- 
- 
115 
115 
Liabilities 
Loans and borrowings 
- 
- 
2,570 
2,570 
Trade payables and other liabilities 
- 
- 
71 
71 
Financial instruments and financial liabilities 
- 
- 
329 
329 
- 
- 
2,970 
2,970 
Off balance sheet liabilities 
Payables related to derivative operations 
- 
- 
138 
138 
- 
- 
138 
138 
Net FX risk position 
- 
- 
(686) 
(686) 
Effect of forward exchange contracts 
- 
- 
(22) 
(22) 
Effect of cash flow hedge of FX risk
(1)
- 
- 
440 
440 
Net FX risk position (incl. forward exchange 
contracts and CF hedges on FX risk) 
- 
- 
(268) 
(268) 
(1)
 
The amount relates to a cash flow hedge recognized by the Group’s 
entities in its stand-alone financial statements.

                            

                      

                

          

            
                  
                        
                              Foreign currency denominated intercompany receivables and payables are included 
in sensitivity analysis 
for foreign exchange 
risk. These balances are 
eliminated in consolidated balance 
sheet but their 
effect on 
profit or loss of their currency revaluation 
is not fully eliminated. Therefore, the total 
amounts of exposure 
to foreign exchange risk do not equal to respective items reported on consolidated 
balance sheet. Year-on-
year comparability 
is limited 
due to 
the change 
in the 
EPIF functional 
currency (refer 
to Note 
3 (a) - 
Change 
in accounting policies and terminology). 
Off-balance sheet assets and liabilities include 
payables and receivables from forward exchange contracts 
(refer to Note 27 – Financial instruments for more details). 
The following significant exchange rates applied during the period: 
31 December 2022 
31 December 2021 
CZK 
Average rate 
Reporting date 
spot rate 
Average rate 
Reporting date 
spot rate 
EUR 1 
24.567 
24.114 
25.645 
24.860 
Sensitivity analysis 
A strengthening (weakening) 
of the Czech 
crown, as indicated 
below, against the EUR 
at the reporting 
date 
would have increased (decreased) net assets by the amounts shown in the following table. This analysis is 
based on foreign currency exchange rate variances 
that the Group considered to be reasonably 
likely at the 
end of the 
reporting period. The 
analysis assumes that 
all other variables, 
in particular interest 
rates, remain 
constant. 

                            

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
103 

            
                  
                        
                              Effect in millions of EUR 
2022 
2021 
Profit (loss) 
Profit (loss) 
EUR (5% strengthening of CZK) 
- 
34 
Effect in millions of EUR 
2022 
2021 
Other comprehensive 
income 
Other comprehensive 
income 
EUR (5% strengthening of CZK) 
- 
- 
A 
weakening of 
the Czech 
crown against 
the above 
currencies at 
the reporting 
date would 
have had 
the 
equal but opposite 
effect on the 
above currencies to 
the amounts shown 
above, on the 
basis that all 
other 
variables remain constant.

                            

                      

                

          

            
                  
                        (e) Commodity risk 
The Group’s 
exposure to 
commodity risk 
principally consists of 
exposure to 
fluctuations in the 
prices of 
commodities, especially 
energy, gas and emission 
allowances, both 
on the supply 
and the demand 
side. The 
Group’s 
primary exposure to 
commodity price 
risks arises 
from the 
nature of 
its physical 
assets, namely 
power plants and to a lesser extent from proprietary trading activities. 
In 
case 
of 
favourable 
power 
prices, 
the 
Group 
manages 
the 
natural 
commodity 
risk 
connected 
with 
its 
electricity generation 
by selling 
the power 
it expects 
to produce 
in the 
cogeneration power 
plants and 
in 
ancillary services on an up to two-year forward basis. In case of low power prices, instead of entering into 
such forward 
contracts, the 
Group uses 
the flexibility 
of its 
own power 
generating capacities 
to react 
to 
current power prices with the aim to achieve better average selling price. 
In addition, the Group purchases emission allowances on a forward basis. 
The 
Group 
aims 
to 
reduce 
exposure 
to 
fluctuations 
in 
commodity 
prices 
through 
the 
use 
of 
swaps 
and 
various other types of derivatives. 
The Group 
manages the 
commodity price 
risks associated 
with its 
proprietary trading 
activities by 
generally 
trading 
on 
a 
back-to-back 
basis, 
i.e., 
purchasing 
from 
the 
market 
where 
it 
has 
a 
customer 
in 
place 
to 
purchase the commodity. 
Commodity derivatives primarily represents forwards on purchase or sale of electricity and swaps relating 
to gas which is 
typically used to hedge 
the commodity price for 
eustream’s operations, specifically locking 
the 
sales 
prices 
for 
surplus 
of 
gas-in-kind 
received 
from 
shippers 
(for 
more 
details 
refer 
to 
Note 
28 
– 
Financial instruments). 
Sensitivity analysis 
A 5% 
change in 
the market 
price of 
the natural 
gas would 
have impact 
on the 
fair value 
of cash 
flow hedging 
derivatives of EUR 11 million (2021: EUR 33 million). 
A 5% change 
in the market 
price of the 
electricity would 
have impact on 
the fair value 
of cash flow 
hedging 
derivatives of negative EUR 10 million (2021: negative EUR 5 million). 
A 5% 
change in 
the market 
price of 
the electricity 
would have 
impact close 
to zero 
on the 
fair value 
of 
trading derivatives in 2022 and 2021. 
(f)
Regulatory risk 
The Group is 
exposed to 
risks resulting from 
the regulation 
of electricity 
and gas industries 
in the countries 
in which it 
undertakes business activities, 
primarily the Slovak 
Republic and the 
Czech Republic. Changes 
to existing regulations or 
the adoption of other 
new regulations may 
have an adverse effect on 
the Group’s 
business, financial condition, results of operations, cash flows and prospects.
The 
basic principles 
of 
the price 
regulation in 
the 
Slovak Republic 
are 
governed by 
Act 
No. 250/2012 
Coll., on Regulation 
in Network Industries, 
which provides 
that the 
method of price 
regulation shall 
reflect 
economically eligible costs, economic effectiveness, and a fair 
profit, including the extent of investments, 
which may be included in the price. More detailed rules on 
the price regulation and relevant formulas and 
calculations 
are 
set 
out 
in 
the 
implementing 
legislation 
adopted 
by 
the 
Slovak 
Regulatory 
Office 
for 
Network Industries (“RONI”).

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
104 

            
                  
                        Electricity industry 
price 
regulation is 
regulated 
by RONI’s 
Decree 
No. 
18/2017 Coll., 
on determining 
price regulation in the electric power industry and certain 
conditions of regulated activities in the electric 
power 
industry 
(electricity 
price 
decree) 
containing 
the 
price 
regulation 
for 
electricity 
distribution 
and 
electricity 
supply. 
This 
regulation was 
issued 
for 
regulatory period 
2017-2022. For 
the 
new 
regulatory 
period commencing 
on 1 
January 2023, 
the regulation 
has 
not 
yet been 
officially 
issued. However, 
the 
drafts of 
new price 
regulations have 
been already 
prepared and 
published and 
are now 
subject to 
public 
scrutiny evaluation.
Maximum price for access to the distribution network 
and electricity distribution is determined separately 
for 
each 
voltage 
level 
(low, 
high, 
and 
very 
high) 
and 
calculated 
for 
the 
respective 
voltage 
level 
as 
a 
weighted 
average 
of 
specified 
tariffs. 
The 
maximum 
price 
for 
access 
to 
the 
distribution 
network 
and 
electricity distribution for 
a given voltage 
level reflects 
electricity distribution and 
electricity transmission, 
including losses incurred during electricity 
transmission, and is denominated 
in euro per unit of electricity 
distributed to end 
consumers in the 
relevant year. It is 
calculated using 
a formula set 
by the electricity 
price 
decree, which also lays down a specific formula for the calculation of 
the allowed profit variable.
Electricity prices for households and small enterprises are regulated providing for 
a capped profit margin 
per 
MWh. 
The 
sale 
of 
electricity 
to 
mid-sized 
and 
large 
customers 
is 
the 
subject 
matter 
of 
composite 
electricity supply contracts. Such 
contracts usually determine the 
price for the 
supply of the 
commodity. 
For small enterprises and 
households, composite electricity 
supply contracts define 
the products for which 
price lists 
are issued 
in accordance 
with RONI’s 
price decisions 
for the 
regulated entity 
as a 
supplier of 
electricity. RONI sets a maximum margin per MWh to be charged by the supplier.
Slovak law provides for the 
designation of a supplier of 
last resort in the electricity 
sector. Such a supplier 
of last 
resort is 
the electricity 
supplier which 
must supply 
electricity to 
a customer 
whose original 
electricity 
supplier has lost its ability 
to supply electricity. The supplier of last resort 
is designated by RONI, 
and it is 
generally 
the 
electricity 
supply 
licence 
holder 
which 
is 
part 
of 
the 
vertically 
integrated 
undertaking 
to 
which the respective distribution licence 
holder also belongs. The supply 
of electricity by the supplier 
of 
last resort is subject to price regulation.
Gas 
price 
regulation 
is 
regulated 
by 
RONI’s 
Decree 
No. 
450/2022 
Coll., 
on 
determining 
the 
price 
regulation for gas 
supply and RONI’s 
Decree No. 451/2022 
Coll. on determining the 
price regulation of 
certain regulated activities 
(gas price decree) 
which also regulates 
the price regulation 
for gas transmission 
and gas distribution.
RONI 
regulates 
the 
tariffs 
for 
access 
to 
the 
gas 
distribution 
network 
and 
for 
gas 
distribution 
by 
determination of 
the method 
of calculation of 
the maximum 
tariff for access 
to the gas 
distribution network 
and for gas distribution. The distribution 
tariff is calculated in 
accordance with the formula set in 
the gas 
price decree. The regulated prices 
for access to the distribution 
system and gas distribution are 
charged by 
the gas 
DSO to 
gas suppliers 
who then 
pass the 
prices to 
their end-customers. 
The gas 
suppliers are 
required 
to secure their payments 
by bank guarantees or 
other security instruments, 
typically cash collaterals, 
in the 
extent set out in the operational order of the gas DSO.
The current regulatory period in respect of both gas and power distribution started on 1 January 2023 and 
will end on 31 December 2027.
The 
gas 
transmission 
tariffs 
applicable 
to 
Eustream, 
an 
operator 
of 
a 
large-scale 
high-pressure 
gas 
transmission system in the Slovak Republic, are regulated by the Commission Regulation 2017/460 of 16 
March 
2017 establishing 
a network 
code on 
harmonised transmission 
tariff 
structures for 
gas (network 
code 
on 
harmonised 
tariffs). 
On 
29 
May 
2019, 
RONI 
issued 
a 
decision 
implementing 
the 
rules 
of 
the 
network code on harmonised 
tariffs. On 28 December 
2021, a RONI’s price decision 
aligned with the new 
tariff calculation methodology was issued, setting tariffs (for entry/exit points 
with EU Member States) in 
the Slovak Republic as from 1 
January 2022, despite the fact that due to 
the prolongation of the previous 
regulatory period, the 
new regulatory period 
generally commenced 
on 1 January 
2023. While transmission 
tariffs in 
the Slovak 
Republic for 
the previous 
regulatory period 
were set 
purely based 
on direct 
comparison 
of 
tariffs 
(also 
known 
as 
benchmarking) 
with 
other 
TSOs, 
starting 
from 
2022 
benchmarking 
of 
tariffs 
remained 
to 
be 
used 
as 
the 
secondary 
adjustment 
of 
the 
reference 
prices 
calculated 
on 
the 
cost 
base 
principles. 
The 
network 
code 
on 
harmonised 
tariffs 
envisages 
the 
setting 
of 
the 
tariff 
system 
to 
be 
recalculated following a consultation at least every five years.

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
105 

            
                  
                        Under the 
rules on 
crisis regulation 
applicable in 
the event 
of, for 
example, disproportional 
increase in 
energy prices, the Slovak Government is empowered 
to implement certain regulatory measures, including 
price regulation, which will prevail 
over the applicable RONI’s 
pricing decisions. Within this 
power, the 
Slovak Government adopted (i) Regulation No. 465/2022 Coll. determining 
the maximum prices for part 
of regulated electricity 
and gas supply 
for selected consumers 
and amounts of 
tariffs for 
households and 
selected electricity consumers, and 
(ii) Regulation No. 19/2023 
Coll. determining the maximum 
prices for 
part of regulated gas 
supply for households 
and small consumers 
and regulated electricity 
supply for small 
consumers. As a result, among 
other things,
the following rules apply to 
the pricing regulation in 2023: (i) 
limitation to only 15% of increase in gas prices for households in comparison to 2022, (ii) introduction 
of 
a price cap of EUR 199 per MWh 
on electricity prices for small enterprises with annual consumption not 
exceeding 
30 
MWh, 
or 
(iii) 
introduction 
of 
price 
cap 
of 
EUR 
99 
per 
MWh 
on 
gas 
prices 
for 
small 
enterprises with annual consumption not exceeding 100 MWh. 
Unless the differences between the prices 
set by RONI and prices 
set by the Slovak Government 
are compensated from the state’s budget, they 
shall 
be reflected in RONI’s 
pricing regulation during the following (maximum four year) 
period after the end 
of crisis regulation.
The Czech Energy Regulatory 
Office (“ERO”) issues 
pricing decisions that 
set forth mandatory 
guidelines 
applicable to 
the calculation 
of heat 
prices. These 
rates are 
comprised of 
(i) the 
economically justified 
costs 
necessary for production and distribution 
of heat, (ii) appropriate profit, 
and (iii) VAT. 
Furthermore, ERO 
sets the 
limit price 
for heat 
which allows 
the Company’s 
subsidiaries to 
set their 
own heat 
price, on 
the 
condition that 
it is 
lower than 
the limit price 
and follows 
the calculation principles. 
Nevertheless, ERO 
also 
has the right to review retroactively 
the operations of a heat producer 
for the previous 5 years with 
respect 
to the heat-price setting mechanism applied 
by that particular entity. If the entity is not able to 
duly justify 
the pricing mechanism applied, ERO may impose 
significant penalties which could have material adverse 
effect on 
the Group’s 
business, financial 
condition, results 
of operations, 
cash flows 
and prospects. 
The 
fact that the price of heat is 
not set by ERO as a fixed amount 
per unit gives rise to a 
degree of uncertainty 
on the part 
of the operator as 
there is the 
possibility that the calculation 
it carried out 
will be assessed as 
incorrect by 
ERO. However, 
ERO provided 
guidance on 
setting appropriate 
profit in 
the price 
decree issued 
in September 2021. 
The appropriate 
profit is 
currently defined 
as 6.5% of 
the historical 
cost of 
fixed assets, 
adjusted for cumulative inflation.
As 
regards 
electricity produced 
by 
cogeneration plants, 
ERO 
also 
stipulates the 
amount 
of 
subsidy 
for 
electricity from 
high-efficiency cogeneration 
sources in 
its 
price decision 
in 
the form 
of a 
green bonus 
granted on an 
annual basis, which 
is set per 
MWh and granted 
on an annual 
or hourly basis. 
The respective 
tariff is 
set in 
the price 
decision in 
CZK per 
MWh and 
has different 
levels depending 
on the 
size of 
the 
plant, overall 
time of 
its use 
during a 
year and 
the fuel 
it uses. 
It is 
common for 
ERO to 
issue the 
price 
decision annually, in the 
autumn for 
the coming 
calendar year. In 
September 2022, 
ERO issued 
a new 
price 
decree, reducing the cogeneration subsidy 
to zero for 2023, reflecting the 
elevated power prices which are 
viewed by ERO as adequate for compensating the power producers.
An amendment in respect 
of the Czech Promoted 
Energy Sources Act 
was approved in September 2021. 
The amendment 
introduces, among 
others, a 
(i) system 
of auctions 
where producers 
would compete 
for 
operating subsidies on 
renewable power and 
power from cogeneration 
and (ii) a transformational 
emission 
allowance subsidy through which heat plant operators 
would be eligible for financial compensation of the 
price 
paid for 
emission allowances 
consumed for 
heat 
generation if 
the 
heat 
plant operator 
commits to 
phase out coal by 31 December 2030. 
Implementation of the subsidy nevertheless requires prior state aid 
approval from the European Commission. This approval has not yet been 
obtained.
In reaction to the current 
energy crisis, the Czech Government decided 
to fix the prices of 
electricity and 
gas 
for 
certain 
customers. 
Currently, 
the 
prices 
of 
electricity 
and 
gas 
for 
the 
year 
2023 
are 
capped 
by 
Regulation No. 
298/2022 Coll. 
The Government 
may reissue 
the regulation 
if the 
current extraordinary 
market situation 
persists for 
a longer 
period. At 
the same 
time, if 
the situation 
were to 
be resolved, 
the 
Government could 
immediately revoke 
the Regulation 
even before 
the expiry 
of the 
period for 
which it 
was issued. Regulation No. 298/2022 Coll. sets out further details of the price cap, including primarily (i) 
the maximum price (i.e. 
price caps) which may 
be charged by 
a supplier to a 
customer, (ii) categories 
of 
customers to whom 
the maximum prices 
applies; and (iii) 
that part of 
the consumption which is 
covered 
by 
the 
price 
cap for 
a 
specific 
customer 
group 
(in 
those cases 
where the 
cap does 
not 
cover 
the 
entire 

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
106 

            
                  
                        consumption). Prices are capped 
at CZK 2,500 
per MWh of gas 
and CZK 5,000 per 
MWh of electricity. 
Both prices exclude VAT 
and regulated charges.
In addition, a revenue cap 
has been in the 
Czech Republic introduced based on Council 
Regulation (EU) 
2022/1854. This revenue 
cap applies to 
electricity generators whose 
revenue from the 
sale of electricity 
on 
the wholesale electricity market 
exceeds the threshold set 
by Act No. 458/2000 Coll. 
(the “Energy Act”) 
and implementing 
regulation No. 
407/2022. This 
equals to 
90% of 
the revenue 
above the 
set threshold. 
The revenue 
caps are 
a temporary 
solution. According to 
the Energy 
Act, they 
will apply 
for the 
period 
from 1 December 2022 to 31 December 2023 (as opposed to EU Regulation No. 2022/1854, under which 
the 
revenue 
caps 
should 
be 
effective 
only 
until 
30 
June 
2023). 
The 
general 
revenue 
cap 
is 
set 
at 
180 
EUR/MWh 
in 
the 
Council 
Regulation 
(EU) 
2022/1854. 
The 
Czech 
legislator 
has 
decided 
to 
apply 
a different revenue 
cap for 
certain energy 
sources, including 
those using, 
which is 
used by 
the Group’s 
heating plants and revenue from which is capped at 230 EUR/MWh. 
Furthermore, a 
so-called windfall 
tax was 
introduced last 
year as 
an amendment 
to Act 
No. 586/1992 
Coll., 
Act on Income Tax, targeting companies in the energy and banking sectors to tax surplus profits resulting 
from the energy 
crisis. The proceeds 
of the tax 
are intended to 
cover the cost 
of price caps 
on electricity 
and gas customers. The taxpayer 
of the windfall tax is an 
entity with revenues above a certain 
limit from 
the relevant activities, meaning 
energy and banking 
sector. 
The tax period 
is set to 
be the calendar 
years 
2023 to 
2025 and the 
tax rate 
is 60% on 
top of the 
regular tax 
rate, so a 
tax rate of 
79% in total 
is to be 
applied 
on 
the 
extra 
profits. 
The 
windfall 
tax 
in 
the 
energy 
sector 
covers 
entities 
engaged 
in 
power 
generation except 
for combined 
heat and 
power generation 
where the 
ratio of 
produced power 
and heat 
does not exceed 
a coefficient of 
4.4., a condition 
fulfilled by all 
heating plants operated 
by EPIF Group. 
Within 
the Group, 
EP Energy 
Trading 
and Dobrá 
Energie are 
subject to 
the windfall 
tax. However, 
the 
Group does not 
expect any material 
tax liability arising 
from the windfall 
tax. The effect 
of the windfall 
tax which arises from renewable 
generation sources, such as 
wind and solar, is immaterial from 
the Group 
perspective. 
(g)
Concentration risk 
Major part of 
gas transmission, gas and 
power distribution and gas 
storage revenues, which are 
primarily 
recognized by 
SPPI Group 
and 
Stredoslovenská distribučná, 
a.s., are 
concentrated to 
a small 
number of 
customers. This 
is caused 
by the 
nature of 
business which 
has high 
barriers of 
entry. 
At the 
same time, 
majority of these 
revenues is subject 
to regulation as 
well as recognized 
under long-term contracts, 
often 
under 
‚take 
or 
pay‘ 
schemes 
which 
limit 
the 
volatility 
of 
revenues 
year-on-year. 
From 
the 
credit 
risk 
perspectives, 
the 
counterparties 
are 
typically 
high-profile 
entities 
which 
are 
dependent 
on 
the 
supplied 
service which naturally limits the present credit risk.

                      
(h)

                        Capital management 
The 
Group’s 
policy is 
to 
maintain 
a 
strong 
capital 
base 
so 
as 
to 
maintain investor, 
creditor 
and market 
confidence and to sustain future development of its business. 
The Group 
manages its 
capital to 
ensure that 
entities in 
the Group 
will be 
able to 
continue as 
a going 
concern 
while maximising the return to shareholders through the optimisation of 
the debt and equity balance. 
Neither the Company nor any of its subsidiaries are subject to externally 
imposed capital requirements.

                      

                

          
 

            
                  
                        In millions of EUR 
31 December 2022 
31 December 2021 
Proportionate Gross Debt* 
3,677 
3,240 
Less: Proportionate cash and cash equivalents* 
1,143 
316 
Proportionate net debt 
2,534 
2,924 
Proportionate EBITDA* 
866 
687 
Proportionate net debt to proportionate EBITDA* 
2.93 
4.25 

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
107 

            
                  
                        * The terms: Proportionate Gross Debt, Proportionate 
cash and cash equivalents, Proportionate EBITDA and 
Proportionate net debt to proportionate 
EBITDA do not represent any such terms as might be included in any financing 
documentation of the EPIF Group. Proportionate 
values are calculated as values reported by individual companies 
(incl. eliminations and consolidation adjustments) multiplied by effective shareholding 
of the Company in them. 
The Group also monitors its debt to adjusted capital ratio. 
At the end of the reporting period the ratio was as follows: 
In million of EUR 
31 December 2022 
31 December 2021 
Total liabilities 
8,392 
7,794 
Less: cash and cash equivalents 
1,548 
501 
Net debt 
6,844 
7,293 
Total equity attributable to the equity holders 
1,504 
1,042 
Less: Other capital reserves related to common control 
transactions 
(4,976) 
(4,526) 
Less: amounts accumulated in equity relating to cash flow 
hedges 
(295) 
(321) 
Adjusted capital 
6,775 
5,889 
Debt to adjusted capital 
1.01 
1.24

                      

                

          

            
                  
                        
                              
                                    (i
) 
Hedge accounting 
The balance as at 31 
December 2022 represents primarily derivative agreements to hedge an 
interest rate, 
an electricity price, gas price 
and a foreign exchange rate 
and the effect from a cash 
flow hedge recognised 
on the EPIF Group level. 
The 
effective 
portion 
of 
fair 
value 
changes 
in 
financial 
derivatives 
designated 
as 
cash 
flow 
hedges 
are 
recognised in equity. 
During the 
period the 
Group reclassified 
EUR 456 
million (negative 
impact on 
profit or 
loss) including 
non-controlling interest from hedging 
reserves to profit 
or loss (2021: 
EUR 139 million 
(negative impact 
on profit or loss)). 
The following table 
provides a reconciliation 
of amounts recorded 
in equity attributable 
to owners of 
the 
Company by category of hedging instrument:

                                  

                            

                      

                

          

            
                  
                        
                              
                                    In millions of EUR 
Commodity 
derivatives – 
cash flow 
hedge
(1)
Interest rate 
swaps – cash 
flow hedge 
Total 
Balance at 1 January 2022 
(236) 
(85) 
(321) 
Effect of change in functional currency 
(1) 
(2) 
(3) 
Cash flow hedges reclassified to profit or loss 
18 
113 
131 
Deferred tax – cash flow hedges reclassified to profit or loss 
(10) 
(21) 
(31) 
Revaluation of cash flow hedges 
(101) 
7 
(94) 
Deferred tax – cash flow hedges revaluation 
24 
(1) 
23 
Balance at 31 December 2022 
(306) 
11 
(295) 
(1)
 
Including also hedge for foreign currency risk 
In millions of EUR 
Commodity 
derivatives – 
cash flow 
hedge
(1)
Interest rate 
swaps – cash 
flow hedge 
Total 

                                  

                            

                      

                

          

 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
108 

            
                  
                        
                              
                                    Balance at 1 January 2021 
1 
(103) 
(102) 
Cash flow hedges reclassified to profit or loss 
29 
22 
51 
Deferred tax – cash flow hedges reclassified to profit or loss 
(7) 
(5) 
(12) 
Revaluation of cash flow hedges 
(328) 
1 
(327) 
Deferred tax – cash flow hedges revaluation 
69 
- 
69 
Balance at 31 December 2021 
(236)
-
(85) 
(321) 
(1)
 
Including also hedge for foreign currency risk

                                  

                            

                      

                

          

            
                  
                        
                              
                                    Cash flow hedges – hedge of foreign currency risk and commodity price risk of revenues of power 
production with financial derivatives
The Group applies hedge accounting for hedging instruments designed to hedge the 
commodity price risk 
and 
the 
foreign 
currency 
risk 
of 
cash-flows 
from 
Group’s 
power 
production 
sold 
to 
or 
commodities 
purchased from the third parties. 
This includes commodity derivatives with net settlement 
for commodity 
risk. As 
a result 
of the 
hedge relationship 
on the 
Group level, 
the Group 
recorded a 
change in 
a foreign 
currency cash flow hedge reserve of negative EUR 134 million (2021: negative EUR 53 million). For risk 
management policies, refer to Note 31 (d) and (e) – Risk management policies 
and disclosures. 
Cash flow hedges – hedge of commodity price risk of gas
The Group 
applies hedge 
accounting for 
commodity hedging 
instruments designed 
to hedge cash 
flow from 
sales of 
gas. The 
hedging instruments are 
commodity swaps to 
hedge selling price 
for entities 
surplus of 
gas in-kind. A decline in the 
prices could result in a decrease in 
net income and cash flows. As a result 
of 
the hedge 
relationship on 
the Group 
level, the 
Group recorded 
a change 
in a 
cash flow 
hedge reserve 
of 
positive EUR 
67 million (2021: 
negative EUR 185 
million). For risk 
management policies, refer 
to Note 
31 (d) and (e) – Risk management policies and disclosures.

                                  

                            

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
109 

            
                  
                        
                              
                                    The 
following 
tables 
provides 
details 
of 
cash 
flow 
hedge 
commodity 
derivatives 
gas 
and 
power 
for 
commodity price risk recorded by the Group as at 31 December 2022 and 
2021: 
In millions of EUR 
31 December 
2022 
31 December 
2022 
31 December 
2022 
31 December 
2022 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
1 
50 
14 
14 
3 months to 1 year 
110 
520 
771 
995 
1–5 years 
- 
41 
13 
14 
Over 5 years 
- 
- 
- 
- 
Total 
111 
611 
798 
1,023 
In millions of EUR 
31 December 
2021 
31 December 
2021 
31 December 
2021 
31 December 
2021 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
2 
129 
125 
199 
3 months to 1 year 
202 
490 
741 
1,071 
1–5 years 
24 
150 
112 
251 
Over 5 years 
- 
- 
- 
- 
Total 
228 
769 
978 
1,521

                                  

                            

                      

                

          

            
                  
                        
                              
                                    The following tables provides details of cash flow hedge 
currency derivatives recorded by the Group as 
at 31 December 2022 and 2021: 
In millions of EUR 
31 December 
2022 
31 December 
2022 
31 December 
2022 
31 December 
2022 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
- 
1 
14 
14 
3 months to 1 year 
- 
4 
140 
149 
1–5 years 
- 
2 
46 
49 
Over 5 years 
- 
- 
- 
- 
Total 
- 
7 
200 
212 
In millions of EUR 
31 December 
2021 
31 December 
2021 
31 December 
2021 
31 December 
2021 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
- 
1 
44 
46 
3 months to 1 year 
- 
2 
57 
60 
1–5 years 
- 
- 
14 
15 
Over 5 years 
- 
- 
- 
- 
Total 
- 
3 
115 
121

                                  

                            

                      

                

          

            
                  
                        
                              
                                    Cash flow hedges – hedge of interest rate risk 
The Group applies 
hedge accounting for 
hedging instruments designed 
to hedge interest 
rate risk of 
its debt 
financing. The hedging instruments are 
interest rate swaps used in order 
to hedge risk related to 
repricing 

                                  

                            

                      

                

          

 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
110 

            
                  
                        
                              
                                    of interest 
rates on 
its financing. 
As a 
result of 
the hedge 
relationship on 
the Group 
level, the 
Group recorded 
a 
change 
in 
interest 
rate 
cash 
flow 
hedge 
reserve 
of 
positive 
EUR 
97 
million 
(2021: 
positive 
EUR 
19 
million). For risk management policies, refer to Note 31 (c) – Risk management 
policies and disclosures.

                                  

                            

                      

                

          

            
                  
                        
                              
                                    The following tables provides details 
of cash flow hedge 
interest rate swaps recorded 
by the Group as at 
31 December 2022 and 2021: 
In millions of EUR 
31 December 
2022 
31 December 
2022 
31 December 
2022 
31 December 
2022 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
1 
- 
20 
19 
3 months to 1 year 
3 
- 
60 
57 
1–5 years 
- 
- 
- 
- 
Over 5 years 
- 
- 
- 
- 
Total 
4 
- 
80 
76 
In millions of EUR 
31 December 
2021 
31 December 
2021 
31 December 
2021 
31 December 
2021 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
- 
- 
2 
2 
3 months to 1 year 
- 
1 
6 
6 
1–5 years 
- 
3 
16 
18 
Over 5 years 
- 
- 
- 
- 
Total 
- 
4 
24 
26

                                  

                            

                      

                

          

            
                  32. 
Related parties 
The 
Group 
has 
a 
related 
party 
relationship 
with 
its 
shareholders 
and 
other 
parties, 
as 
identified 
in 
the 
following table:

                

          

            
                  (a) 
The summary of transactions with related parties during the period ended 31 
December 2022 
and 31 December 2021 was as follows: 
In millions of EUR 
Accounts 
receivable and 
other financial 
assets 
Accounts 
payable and 
other financial 
liabilities 
Accounts 
receivable and 
other financial 
assets 
Accounts 
payable and 
other financial 
liabilities 
31 December 
2022 
31 December 
2022 
31 December 
2021 
31 December 
2021 
Ultimate shareholder 
(1)
- 
- 
- 
- 
Companies controlled by ultimate shareholders 
332 
70 
332 
291 
Companies under significant influence by 
ultimate shareholders 
- 
- 
2 
2 
Associates 
- 
- 
4 
- 
Other Related party 
- 
1 
- 
- 
Total 
332 
71 
338 
293 
(1)
 
Daniel Křetínský represents the ultimate shareholder 

                

          

 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
111 

            
                  (b) 
The summary of transactions with related parties during the period ended 31 
December 2022 
and 31 December 2021 was as follows: 
In millions of EUR 
Revenues 
Expenses 
Revenues 
Expenses 
31 December 
2022 
31 December 
2022 
31 December 
2021 
31 December 
2021 
Ultimate shareholder
(1)
- 
- 
- 
- 
Companies controlled by ultimate shareholders 
335 
322 
267 
125 
Companies under significant influence by 
ultimate shareholders 
- 
- 
19 
2 
Associates 
- 
- 
- 
- 
Other Related party 
1 
2 
- 
- 
Total 
336 
324 
286 
127 
(1)
 
Daniel Křetínský represents the ultimate shareholder

                

          
 

            
                  Transactions with the key management personnel 
For the financial years 
ended 31 December 
2022 and 2021 the 
EPIF Group’s key management personnel 
is 
represented by members of 
the Board of 
Directors of the following 
major entities: EP Infrastructure, 
a.s., 
Stredoslovenská energetika Holding, a.s. and 
its major subsidiaries, SPP Infrastructure, 
a.s., eustream, a.s., 
SPP – distribúcia, a.s., 
NAFTA a.s., NAFTA Germany GmbH, POZAGAS a.s., 
Elektrárny Opatovice, a.s. 
and 
EOP 
Distribuce, 
a.s., 
United 
Energy, 
a.s., 
Plzeňská 
teplárenská 
a.s., 
SPP 
Storage, 
s.r.o. 
and 
EP 
ENERGY TRADING, a.s. 
Total compensation and related social 
and health insurance 
charges incurred by 
the respective entities 
were 
as follows: 
In millions of EUR 
2022
2021
Nr. of personnel 
69 
67 
Compensation, fees and rewards
5 
4 
Compulsory social security contributions
1 
1 
Total 
6 
5 
Other remuneration of Group management (management of all components 
within the Group) is included 
in Note 10 – Personnel expenses. All transactions were performed under 
the arm’s length principle.

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
112 

            
                  
                        33. 
Group entities 
The list of the Group entities as at 31 December 2022 and 31 December 2021 
is set out below: 
31 December 2022 
31 December 2021 
2022 
2021 
Country of 
incorporation 
Segment 
Ownership 
% 
Ownership 
interest 
Ownership 
% 
Ownership 
interest 
Consolidation 
methood 
Consolidation 
methood 
EP Infrastructure, a.s. * 
Czech Republic 
Holding entities 
EP Energy, a.s. * 
Czech Republic 
Holding entities 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
AISE, s.r.o. 
Czech Republic 
Other 
80 
Direct 
80 
Direct 
Consolidated 
Consolidated 
PT měření, a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
United Energy, a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
EVO - Komořany, a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
United Energy Moldova, s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
United Energy Invest, a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Nadační fond pro rozvoj vzdělávání 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
At cost 
At cost 
EP Sourcing, a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
EP ENERGY TRADING, a.s. 
Czech Republic 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Dobrá Energie s.r.o. 
Czech Republic 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Elektrárny Opatovice, a.s. (VTE Moldava II, a.s.)
(1)
Czech Republic 
Other 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
V A H O s.r.o.
(2)
Czech Republic 
Heat infra 
100 
Direct 
- 
- 
At cost 
- 
Farma Lístek, s.r.o.
(2)
Czech Republic 
Heat infra 
100 
Direct 
- 
- 
At cost 
- 
MR TRUST s.r.o.* 
Czech Republic 
Other 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
ARISUN, s.r.o. 
Slovakia 
Other 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Greeninvest Energy, a.s.
(4)
Czech Republic 
Other 
- 
- 
41.70 
Direct 
- 
Equity 
POWERSUN a.s. 
Czech Republic 
Other 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Triskata, s.r.o. 
Slovakia 
Other 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
VTE Pchery, s.r.o. 
Czech Republic 
Other 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Alternative Energy, s.r.o. 
Slovakia 
Other 
90 
Direct 
90 
Direct 
Consolidated 
Consolidated 
CHIFFON ENTERPRISES LIMITED * 
Cyprus 
Other 
100 
Direct 
100 
Direct 
At cost 
At cost 
Severočeská teplárenská, a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
GABIT spol. s r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
At cost 
At cost 
Industrial Park Opatovice s.r.o. 
(TreatDream s.r.o.)
(3)
Czech Republic 
Holding entities 
- 
- 
100 
Direct 
- 
At cost 
Mirtheaven a.s.
(8)
Czech Republic 
Holding entities 
- 
- 
100 
Direct 
- 
At cost 
EOP Distribuce, a.s. (Elektrárny Opatovice, a.s)
(1)
Czech Republic 
Heat infra 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
V A H O s.r.o.
(2)
Czech Republic 
Heat infra 
- 
- 
100 
Direct 
- 
At cost 
Farma Lístek, s.r.o.
(2)
Czech Republic 
Heat infra 
- 
- 
100 
Direct 
- 
At cost 
Stredoslovenská energetika Holding, a.s. 
Slovakia 
Gas and power distribution 
49 
Direct 
49 
Direct 
Consolidated 
Consolidated 
Kinet s.r.o. 
Slovakia 
Gas and power distribution 
80 
Direct 
80 
Direct 
Consolidated 
Consolidated 
Kinet Inštal s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Stredoslovenská distribučná, a.s. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Elektroenergetické montáže, s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
SSE - Metrológia s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Stredoslovenská energetika - Project Development, s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
SSE-Solar, s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
SPX, s.r.o. 
Slovakia 
Gas and power distribution 
33.33 
Direct 
33.33 
Direct 
Equity 
Equity 

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
113 

            
                  
                        31 December 2022 
31 December 2021 
2022 
2021 
Country of 
incorporation 
Segment 
Ownership 
% 
Ownership 
interest 
Ownership 
% 
Ownership 
interest 
Consolidation 
methood 
Consolidation 
methood 
Energotel, a.s. 
Slovakia 
Gas and power distribution 
20 
Direct 
20 
Direct 
Equity 
Equity 
SSE CZ, s.r.o. 
Czech Republic 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
SPV100, s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
SSE - MVE, s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Stredoslovenská energetika, a.s. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
PW geoenergy a.s.
(6)
Slovakia 
Gas and power distribution 
51 
Direct 
- 
- 
Consolidated 
- 
EP ENERGY HR d.o.o. 
Croatia 
Other 
100 
Direct 
100 
Direct 
At cost 
At cost 
EP Cargo a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Patamon a.s. 
Czech Republic 
Holding entities 
100 
Direct 
100 
Direct 
At cost 
At cost 
Plzeňská teplárenská, a.s. 
Czech Republic 
Heat Infra 
35 
Direct 
35 
Direct 
Consolidated 
Consolidated 
Plzeňská teplárenská SERVIS IN 
a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
At cost 
At cost 
Plzeňské služby s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
At cost 
At cost 
PPT POTRUBNÍ TECHNIKA s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
At cost 
At cost 
TERMGLOBAL s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
At cost 
At cost 
TRAXELL s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
At cost 
At cost 
Czech Gas Holding Investment B.V.* 
Netherlands 
Holding entities 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA a.s. 
Slovakia 
Gas storage 
40.45 
Direct 
40.45 
Direct 
Consolidated 
Consolidated 
Karotáž a cementace, s.r.o. 
Czech Republic 
Gas storage 
51 
Direct 
51 
Direct 
At cost 
At cost 
POZAGAS a.s. 
Slovakia 
Gas storage 
65 
Direct 
65 
Direct 
Consolidated 
Consolidated 
NAFTA Services, s.r.o. 
Czech Republic 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
EP Ukraine B.V. 
Netherlands 
Gas storage 
10 
Direct 
10 
Direct 
Consolidated 
Consolidated 
EP Hungary s.r.o. (Arsikon s.r.o.) 
Czech Republic 
Gas storage 
10 
Direct 
- 
- 
At cost 
- 
HHE Group Ventures 
Kft.
(7)
Hungary 
Gas storage 
50 
Direct 
- 
- 
At cost 
- 
Slovakian Horizon Energy, s.r.o. 
Slovakia 
Gas storage 
50 
Direct 
50 
Direct 
Equity 
Equity 
Nafta Exploration d.o.o.
(5)
Croatia 
Gas storage 
- 
- 
100 
Direct 
- 
Consolidated 
NAFTA International B.V. 
* 
Netherlands 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA Germany GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA Bavaria GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA Speicher Management 
GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA Speicher GmbH&Co. 
KG 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA Speicher Inzenham 
GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA RV 
Ukraine 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
CNG Holdings Netherlands B.V. 
Netherlands 
Gas storage 
100 
Direct 
50 
Direct 
At cost 
At cost 
CNG LLC 
Ukraine 
Gas storage 
100 
Direct 
100 
Direct 
At cost 
At cost 
EPH Gas Holding B.V. 
* 
Netherlands 
Holding entities 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Seattle Holding B.V. 
* 
Netherlands 
Holding entities 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Slovak Gas Holding B.V. 
* 
Netherlands 
Holding entities 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
SPP Infrastructure, a.s. 
Slovakia 
Holding entities 
49 
Direct 
49 
Direct 
Consolidated 
Consolidated 
eustream, a.s. 
Slovakia 
Gas transmission 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
Central European Gas HUB AG 
Austria 
Gas transmission 
15 
Direct 
15 
Direct 
At cost 
At cost 
eastring B.V. 
Netherlands 
Gas transmission 
100 
Direct 
100 
Direct 
At cost 
At cost 
Plynárenská metrológia, s.r.o. 
Slovakia 
Holding entities 
100 
Direct 
100 
Direct 
At cost 
At cost 
SPP - distribúcia, a.s. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
114 

            
                  
                        31 December 2022 
31 December 2021 
2022 
2021 
Country of 
incorporation 
Segment 
Ownership 
% 
Ownership 
interest 
Ownership 
% 
Ownership 
interest 
Consolidation 
methood 
Consolidation 
methood 
SPP - distribúcia Servis, s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
At cost 
At cost 
NAFTA a.s. 
Slovakia 
Gas storage 
56.15 
Direct 
56.15 
Direct 
Consolidated 
Consolidated 
Karotáž a cementace, s.r.o. 
Czech Republic 
Gas storage 
51 
Direct 
51 
Direct 
At cost 
At cost 
POZAGAS a.s. 
Slovakia 
Gas storage 
65 
Direct 
65 
Direct 
Consolidated 
Consolidated 
NAFTA Services, s.r.o. 
Czech Republic 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
EP Ukraine B.V. 
Netherlands 
Gas storage 
10 
Direct 
10 
Direct 
Consolidated 
Consolidated 
EP Hungary s.r.o. (Arsikon s.r.o.) 
Czech Republic 
Gas storage 
10 
Direct 
- 
- 
At cost 
- 
HHE Group Ventures 
Kft.
(7)
Hungary 
Gas storage 
50 
Direct 
- 
- 
At cost 
- 
Slovakian Horizon Energy, s.r.o. 
Slovakia 
Gas storage 
50 
Direct 
50 
Direct 
Equity 
Equity 
Nafta Exploration d.o.o.
(5)
Croatia 
Gas storage 
- 
- 
100 
Direct 
- 
Consolidated 
NAFTA International B.V.* 
Netherlands 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA Germany GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA Bavaria GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA Speicher Management 
GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA Speicher GmbH&Co. 
KG 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA Speicher Inzenham GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
NAFTA RV 
Ukraine 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
CNG Holdings Netherlands B.V. 
Netherlands 
Gas storage 
100 
Direct 
50 
Direct 
At cost 
At cost 
CNG LLC 
Ukraine 
Gas storage 
100 
Direct 
100 
Direct 
At cost 
At cost 
GEOTERM KOŠICE, a.s. 
Slovakia 
Holding entities 
95.82 
Direct 
95.82 
Direct 
Consolidated 
Consolidated 
SPP Storage, s.r.o. 
Czech Republic 
Gas storage 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated 
POZAGAS a.s. 
Slovakia 
Gas storage 
35 
Direct 
35 
Direct 
Consolidated 
Consolidated 
SLOVGEOTERM a.s. 
Slovakia 
Holding entities 
50 
Direct 
50 
Direct 
Equity 
Equity 
GEOTERM KOŠICE, a.s. 
Slovakia 
Holding entities 
0.08 
Direct 
0.08 
Direct 
Consolidated 
Consolidated 
GALANTATERM 
spol. s r.o. 
Slovakia 
Holding entities 
0.5 
Direct 
0.5 
Direct 
At cost 
At cost 
GALANTATERM 
spol. s r.o. 
Slovakia 
Holding entities 
17.5 
Direct 
17.5 
Direct 
At cost 
At cost 
SPP Infrastructure Financing B.V. 
Netherlands 
Holding entities 
100 
Direct 
100 
Direct 
Consolidated 
Consolidated

                      

                

          

            
                  
                        * 
Holding entity 
(1)
On 1 January 2022, Elektrárny Opatovice, a.s. were renamed 
to EOP Distribuce, a.s. and on 3 January 2022, VTE Moldava II, a.s. was renamed to Elektrárny Opatovice, a.s.. 
(2)
On 1 January 2022, VAHO s.r.o. 
and Farma Listek, s.r.o. 
were transferred to Elektrárny Opatovice, a.s. as part of an 
internal reorganization. 
(3)
On 18 January 2022, Industrial Park Opatovice s.r.o. 
was sold out of the Group. 
(4)
On 14 February 2022, Greeninvest Energy, 
a.s. was sold out of the Group. 
(5)
On 22 February 2022, Nafta Exploration d.o.o. was deconsolidated 
(6)
On 28 April 2022, PW geoenergy a.s. was acquired by Stredoslovenska 
energetika Holding, a.s. 
(7)
On 23 September 2022, HHE Group Ventures 
Kft. was acquired by EP Hungary s.r.o. 
(8)
On 20 December 2022, Mirtheaven a.s. was sold out of the Group. 
The structure above is listed by ownership of companies at the different levels within the 
Group

                      

                

          

 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
115 

            
                  34. 
Subsequent events 
On 
3 
January 
2023, 
new 
credit 
facilities 
were 
obtained 
by 
to 
Stredoslovenská 
energetika, 
a.s. 
and 
Stredoslovenská distribučná, 
a.s. 
Each 
with 
a 
limit 
of 
up 
to 
EUR 
50 
million, maturing 
in 
one 
year 
and 
guaranteed by Stredoslovenská energetika Holding, a.s. 
On 
6 
February 
2023 
and 
13 
March 
2023, 
EP 
Infrastructure, 
a.s. 
voluntarily 
repaid 
a 
total 
of 
EUR 
200 
million of the revolving credit facility maturing in 2025. 
Except 
for 
the 
matters 
described above 
and 
elsewhere in 
the 
Notes, 
the 
Company’s 
management is 
not 
aware 
of 
any 
other 
material 
subsequent 
events 
that 
could 
have 
an 
effect 
on 
the 
consolidated 
financial 
statements as at 31 December 2022.

                

          

            
                  Appendix*:
Appendix 1 – Restated Consolidated statement of comprehensive 
income 
* 
Information contained in the appendices 
form part of the 
complete set of these 
consolidated financial statements.

                

          

            Date: 
Signature of the authorised representative 
 
 
24 March 2023

          
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
116 

            
                  
                        Appendix 1 – Restated Consolidated statement of comprehensive 
income 
Consolidated statement of comprehensive income 
For the year ended 31 December 2021 as published
In millions of EUR (“MEUR”) 
2021 
Revenues 
2,792 
Purchases and consumables 
(1,100) 
Subtotal 
1,692 
Personnel expenses 
(223) 
Depreciation and amortization 
(430) 
Repairs and maintenance 
(23) 
Emission rights, net 
(129) 
Negative goodwill 
- 
Taxes and charges 
(5) 
Other operating income 
64 
Other operating expenses 
(123) 
Own work, capitalized 
26 
Profit (loss) from operations 
849 
Finance income 
39 
Finance expense 
(99) 
Gain (loss) from financial instruments 
18 
Net finance income (expense) 
(42) 
Share of profit (loss) of equity accounted investees, net of tax 
1 
Gain (loss) from disposal of subsidiaries 
(1) 
Profit before income tax 
807 
Income tax expenses 
(205) 
Profit for the year 
602 
Items that are not reclassified subsequently to profit or loss 
Revaluation of property, plant and equipment, net of tax 
- 
Items that are or may be reclassified subsequently to profit or loss 
Foreign currency translation differences for foreign operations 
(207) 
Foreign currency translation differences from presentation currency 
205 
Effective portion of changes in fair value of cash-flow hedges, net of tax 
(408) 
Other comprehensive income for the year, 
net of tax 
(410) 
Total comprehensive income for the year 
192 
Profit attributable to: 
Owners of the Company 
313 
Non-controlling interest 
289 
Profit for the year 
602 
Total comprehensive income attributable 
to: 
Owners of the Company 
80 
Non-controlling interest 
112 
Total comprehensive income for the year 
192 
Total basic and diluted earnings per share in EUR 
0.97 
 

                      

                

          

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
117 

            
                  
                        Consolidated statement of comprehensive income 
For the year ended 31 December 2021 restated
In millions of EUR (“MEUR”) 
2021 
Revenues 
2,810 
Purchases and consumables 
(1,074) 
Subtotal 
1,736 
Services 
(115) 
Personnel expenses 
(223) 
Depreciation, amortization and impairment 
(428) 
Emission rights, net 
(129) 
Other operating income (expense), net 
(18) 
Own work capitalized to fixed assets 
26 
Profit (loss) from operations 
849 
Finance income 
67 
Impairment losses on financial instruments and other financial assets 
(10) 
Finance expense 
(99) 
Net finance income (expense) 
(42) 
Share of profit (loss) of equity accounted investees, net of tax 
1 
Gain (loss) from disposal of subsidiaries 
(1) 
Profit before income tax 
807 
Income tax expenses 
(205) 
Profit for the year 
602 
Items that are not reclassified subsequently to profit or loss 
Revaluation of property, plant and equipment, net of tax 
- 
Items that are or may be reclassified subsequently to profit or loss 
Foreign currency translation differences for foreign operations 
(207) 
Foreign currency translation differences from presentation currency 
205 
Effective portion of changes in fair value of cash-flow hedges, net of tax 
(408) 
Other comprehensive income for the year, 
net of tax 
(410) 
Total comprehensive income for the year 
192 
Profit attributable to: 
Owners of the Company 
313 
Non-controlling interest 
289 
Profit for the year 
602 
Total comprehensive income attributable 
to: 
Owners of the Company 
80 
Non-controlling interest 
112 
Total comprehensive income for the year 
192 
Total basic and diluted earnings per share in EUR 
0.97

                      

                

          

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2022 
118 
VI. 
Independent Auditor´s Report to the Statutory Financial 
Statements

 
EP Infrastructure, a.s. 
FINANCIAL STATEMENTS 
IN ACCORDANCE WITH IFRS 
AND INDEPENDENT AUDITOR’S REPORT 
AS OF 31 DECEMBER 2022

 
 
 
INDEPENDENT AUDITOR’S REPORT
To 
the Shareholders of 
EP Infrastructure, 
a.s.
Having its registered office at: Pařížs 
ká 130/26, Josefov, 
110 00 Prague 1
Opinion
We 
have 
audited 
the 
accompanying 
financial 
statements 
of 
EP 
Infrastructure 
a.s. 
(hereinafter 
also 
the 
“Company”) 
prepared 
on 
the 
basis 
of 
International 
Financial 
Reporting 
Standards 
as 
adopted 
by 
the 
EU, 
which 
comprise 
the statement 
of financial 
position as 
of 31 December 2022, 
and the 
statement 
of comprehensive 
income, statement 
of 
changes 
in 
equity 
and 
statement 
of 
cash 
flows 
for 
the 
year 
then 
ended, 
and 
notes 
to 
the 
financial 
statements, 
including a summary of significant accounting policies and other explanatory 
information.
In 
our 
opinion, 
the 
accompanying 
financial 
statements 
give 
a 
true 
and 
fair 
view 
of 
the 
financial 
position 
of EP Infrastructure 
a.s. as of 
31 December 2022, 
and of its 
financial performance 
and its cash 
flows for 
the year 
then 
ended in accordance with International Financial Reporting 
Standards as adopted by the EU.
Basis for Opinion
We 
conducted 
our 
audit 
in 
accordance 
with 
the 
Act 
on 
Auditors, 
Regulation 
(EU) 
No. 
537/2014 
of 
the 
European 
Parliament 
and 
the 
Council, 
and 
Auditing 
Standards 
of 
the 
Chamber 
of 
Auditors 
of 
the 
Czech 
Republic, 
which 
are 
International Standards on Auditing (ISAs), as amended by the related application 
guidelines. Our responsibilities under 
this law and 
regulation are further 
described in the Auditor’s 
Responsibilities for 
the Audit of the 
Financial Statements 
section of our 
report. We are independent of 
the Company in 
accordance with the 
Act on Auditors and 
the Code of Ethics 
adopted 
by 
the Chamber 
of 
Auditors 
of 
the 
Czech 
Republic 
and 
we 
have 
fulfilled 
our 
other 
ethical 
responsibilities 
in 
accordance 
with 
these 
requirements. 
We 
believe 
that 
the 
audit 
evidence 
we 
have 
obtained 
is 
sufficient 
and appropriate to provide a basis for 
our opinion.
Key Audit Matters
Key 
audit 
matters 
are 
those 
matters 
that, 
in 
our 
professional 
judgment, 
were 
of 
most 
significance 
in 
our 
audit 
of the financial 
statements 
of 
the 
current 
period. 
These 
matters 
were 
addressed 
in 
the 
context 
of 
our 
audit 
of the financial statements 
as a whole, 
and in forming 
our opinion thereon, 
and we do 
not provide a 
separate opinion 
on these matters.
EP 
Infrastructure 
a.s. 
is 
a 
holding 
company 
that 
holds 
equity 
investments 
in 
controlled 
entities 
and 
associates. 
As of the balance sheet date, 
these investments in entities 
are valued at cost 
and tested for 
impairment. The valuation 
depends 
on 
assumptions 
and estimates 
of 
future 
developments, 
including 
the 
impact 
of 
the 
sustainability 
concept, 
financial performance 
of the 
investments, 
future 
of the 
energy 
sector 
in Europe 
– including 
the development 
of the 
military conflict 
of Russian Federation 
in Ukraine 
and related 
sanctions - 
and the use 
of discounts. 
These assumptions 
and 
estimates 
are 
associated 
with 
a 
significant 
degree 
of 
uncertainty 
and 
are 
described 
in 
Notes 
to 
the 
financial 
statements in Note 2g and 6 .
In 
the 
aforementioned 
area, 
our 
audit 
procedures 
included 
assessment 
of 
the 
valuation 
method 
and 
testing 
of the measurement of 
carrying amounts of financial 
investments through 
asses impairment models. Our procedures 
also included 
inquiries of 
the management 
concerning 
year-to-year 
changes in 
the equity 
investments, 
assessment 
of the impact of 
changes and expected 
changes in the sustainability 
concept, potential impact 
of the military Conflict 
between Russian Federation in Ukraine and 
reading management meeting minutes. We evaluated the 
appropriateness 
of 
management’s 
identification 
of 
the 
Group’s 
CGUs. 
We 
obtained 
an 
understanding 
of 
the 
budget 
preparation 
and impairment 
assessment process, 
including indicators 
of impairment. 
We used 
the work 
of an 
internal specialist 
for 
the 
assessment 
of 
asset 
impairment 
testing 
models 
made 
by 
the 
Company’s 
management, 
their 
assumptions 
and the reliability of these assumptions.

 
 
 
Other Information in the Annual Report
In 
compliance 
with 
Section 
2(b) 
of 
the 
Act 
on 
Auditors, 
the 
other 
information 
comprises 
the 
information 
included 
in 
the Annual 
Report 
other 
than 
the 
financial 
statements 
and 
auditor’s 
report 
thereon. 
The 
Board 
of 
Directors 
is 
responsible for the other information. As part of our responsibilities related to the audit of the financial statement 
s, we 
are obliged to express our opinion on the other information.
As 
stated 
in 
Note 
1 
to 
the 
financial 
statements, 
the 
Company 
does 
not 
prepare 
an 
annual 
report, 
as 
the 
relevant 
information is 
included in the 
consolidated annual 
report. 
For this reason, 
our opinion on 
the other information 
is not 
included in this auditor’s report.
Responsibilities of the Company’s Board 
of Directors and Supervisory Board for the Financial Statements
The Board of Directors is responsible for the preparation and fair presentation of the financial statements in accordance 
with 
International 
Financial 
Reporting 
Standards 
as 
adopted 
by 
the 
EU 
and 
for 
such 
internal 
control 
as 
the 
Board 
of Directors 
determines 
is 
necessary 
to 
enable 
the 
preparation 
of 
financial 
statements 
that 
are 
free 
from 
material 
misstatement, whether due to fraud 
or error.
In 
preparing 
the 
financial 
statements, 
the 
Board 
of 
Directors 
is 
responsible 
for 
assessing 
the Company’s 
ability 
to continue as a 
going concern, disclosing, as applicable, 
matters related 
to going concern and using 
the going concern 
basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, 
or has 
no realistic alternative but to do so.
The Supervisory Board is responsible for overseeing 
the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit 
of the Financial Statements
Our objectives 
are 
to 
obtain 
reasonable 
assurance 
about whether 
the financial 
statements 
as a whole 
are 
free from 
material 
misstatement, 
whether 
due 
to 
fraud 
or 
error, 
and 
to 
issue 
an auditor’s 
report 
that 
includes 
our 
opinion. 
Reasonable assurance 
is a 
high level 
of assurance, 
but is 
not a 
guarantee 
that an 
audit conducted 
in accordance 
with 
ISAs will 
always 
detect 
a material 
misstatement 
when 
it exists. 
Misstatements 
can arise 
from fraud 
or error 
and are 
considered material 
if, 
individually or 
in the 
aggregate, they 
could reasonably 
be expected 
to influence 
the economic 
decisions of users taken on the basis of these financial statements.
As part 
of an 
audit in 
accordance with 
the above 
law or 
regulation, we 
exercise 
professional 
judgment 
and maintain 
professional scepticism throughout the audit. We 
also:
●
Identify and 
assess the 
risks of 
material misstatement 
of the 
financial statements, 
whether due 
to fraud 
or error, 
design 
and 
perform 
audit 
procedures 
responsive 
to 
those 
risks, 
and 
obtain 
audit 
evidence 
that 
is 
sufficient 
and appropriate to provide a basis for 
our opinion. The risk of not detecting a material misstatement 
resulting from 
fraud 
is 
higher 
than 
for 
one 
resulting 
from 
error, 
as 
fraud 
may 
involve 
collusion, 
forgery, 
intentional 
omissions, 
misrepresentations, or the override of internal 
control. 
●
Obtain 
an 
understanding 
of 
internal 
control 
relevant 
to 
the 
audit 
in 
order 
to 
design 
audit 
procedures 
that 
are 
appropriate 
in 
the 
circumstances, 
but 
not 
for 
the 
purpose 
of 
expressing 
an 
opinion 
on 
the 
effectiveness 
of the Company’s internal control. 
●
Evaluate 
the 
appropriateness 
of 
accounting 
policies 
used 
and 
the 
reasonableness 
of 
accounting 
estimates 
and related disclosures made by the Board 
of Directors. 
●
Conclude on the appropriateness of the Board of Directors’ use of the going concern 
basis of accounting and, based 
on the audit evidence obtained, whether a material 
uncertainty exists related to 
events or conditions that may cast 
significant doubt on the Company’s ability to continue as a going concern. If 
we conclude that a material uncertainty 
exists, we are required to draw attention in our auditor’s report 
to the related disclosures in the 
financial statements 
or, 
if 
such 
disclosures 
are 
inadequate, 
to 
modify 
our 
opinion. 
Our 
conclusions 
are 
based 
on 
the 
audit 
evidence 
obtained 
up 
to 
the 
date 
of 
our 
auditor’s 
report. 
However, 
future 
events 
or 
conditions 
may 
cause 
the 
Company 
to cease to continue as a going concern. 
●
Evaluate 
the 
overall 
presentation, 
structure 
and 
content 
of 
the 
financial 
statements, 
including 
the 
disclosures, 
and whether 
the financial statements 
represent the 
underlying transactions 
and events 
in a manner 
that achieves 
fair presentation. 
We communicate with the Board 
of Directors, the Supervisory Board and the Audit Committee 
regarding, among other 
matters, the 
planned scope and 
timing of the 
audit and significant 
audit findings, including 
any significant 
deficiencies 
in internal control that we identify during 
our audit.

 
 
 
 
We 
also 
provide 
the 
Audit 
Committee 
with 
a 
statement 
that 
we 
have 
complied 
with 
relevant 
ethical 
requirements 
regarding 
independence, and 
to communicate 
with them 
all relationships 
and other 
matters 
that may 
reasonably be 
thought to bear on our independence, and where applicable, related 
safeguards. 
From 
the 
matters 
communicated 
with 
the 
Board 
of 
Directors, 
the 
Supervisory 
Board 
and 
the 
Audit 
Committee, 
we 
determine those 
matters 
that were 
of most 
significance in 
the audit 
of the financial 
statements 
of the 
current period 
and are 
therefore 
the key 
audit matters. 
We 
describe these 
matters 
in our 
auditor’s 
report unless 
law or 
regulation 
precludes public 
disclosure about 
the matter 
or when, 
in extremely 
rare 
circumstances, 
we determine 
that 
a matter 
should not be 
communicated in our report 
because the adverse 
consequences of doing 
so would reasonably 
be expected 
to outweigh the public interest benefits of 
such communication.
Report on Other Legal and Regulatory Requirements
In 
compliance 
with 
Article 
10 
(2) 
of 
Regulation 
(EU) 
No. 
537/2014 
of 
the 
European 
Parliament 
and 
the 
Council, 
we 
provide the following information in our independent auditor’s report, 
which is required in addition 
to the requirements 
of International Standards on Auditing:
Appointment of the Auditor and the Period of Engagement
We were appointed 
as the auditors of the 
Company by the General 
Meeting of Shareholders on 
5 March 2020 and our 
uninterrupted engagement has lasted 
for 2 years.
Consistence with the Additional Report to the Audit Committee
We confirm that our audit opinion on the financial statements 
expressed herein is consistent with the additional report 
to the Audit Committee of the Company, which we issued on 24 March 2023 in 
accordance with Article 11 of Regulation 
(EU) No. 537/2014 of the European Parliament and the Council.
Provision of Non-audit Services
We 
declare 
that 
no 
prohibited 
non-audit 
services 
referred 
to 
in 
Article 
5 
of 
Regulation 
(EU) 
No. 
537/2014 
of the European Parliament and the Council were provided.
In addition to 
the statutory 
audit services, we 
have provided 
the Company 
with the following 
services which have 
not 
been disclosed in the financial statements:
●
Review of the condensed interim consolidated 
financial statements as at 30 June 2022; 
●
Assistance with the compilation of the Sustainability 
Report; 
In Prague on
24 March 2023
Audit firm:
Statutory auditor:
Deloitte Audit s.r.o.
registration no. 079 
David Batal 
registration no. 2147

VII.

Statutory Financial Statements and Notes to the Statutory Financial

Statements

 
 
SEPARATE 
FINANCIAL STATEMENTS 
PREPARED IN ACCORDANCE 
WITH INTERNATIONAL FINANCIAL REPORTING 
STANDARDS 
AS ADOPTED 
BY THE EUROPEAN UNION FOR THE YEAR ENDED 31 DECEMBER 2022
Name of the Company: 
EP Infrastructure, a.s. 
Registered Office: 
Pařížská 130/26, Josefov, 
110 00 Prague 1
Legal Status: 
Joint Stock Company 
Corporate ID: 
024 13 507 
Components of the Separate Financial Statements Prepared 
in Accordance with 
International Financial Reporting Standards as Adopted by the European Union:
 
Statement of Financial Position
Statement of Comprehensive Income
Statement of Changes in Equity 
Statement of Cash Flows
Notes to the Financial Statements 
These separate financial statements 
prepared in accordance with International 
Financial Reporting Standards as adopted by the European Union were prepared 
on 24 March 2023.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
Statement of financial position
As at 31 December 2022
In thousands of 
EUR
Note 
31.12.2022 
31.12.2021 
Assets 
Equity investments 
6 
5 501 380 
5 480 657 
Property, plant and equipment 
- 
- 
Intangible assets 
50 
50 
Loans at amortised cost 
7 
- 
903 148 
Financial instruments 
and financial receivables 
8 
46 836 
113 
Deferred tax assets 
19 
- 
7 290 
Total non-current assets
5 548 266 
6 391 258 
Inventories 
75 
816 
Trade receivables and other assets 
9 
2 833 
 
3 257 
Loans at amortised cost 
7
2 029 623 
833 273 
Financial instruments 
and financial receivables 
8
685 
280 
Tax receivables 
9
- 
21 
Cash and cash equivalents 
5
269 893 
29 044 
Total current assets 
2 303 109 
866 691 
Total assets 
7 851 375 
7 257 949 
Equity 
Share capital 
10 
3 248 190 
2 988 423 
Share premium 
8 963 
8 247 
Other capital contributions 
10 
770 635 
695 819 
Foreign currency translation reserve 
- 
419 701 
Retained earnings 
872 027 
724 419 
Valuation 
differences on cash flow hedges 
12 
52 104 
(36 049) 
Total equity attributable to equity holders 
4 951 919 
4 800 560 
Liabilities 
Loans and borrowings 
13 
2 742 051 
2 339 968 
Financial instruments and financial liabilities 
14 
36 
89 783 
Deferred tax liability 
19 
15 795 
- 
Total non-current 
liabilities 
2 757 882 
2 429 751 
Trade payables and other liabilities 
15 
3 769 
3 031 
Loans and borrowings 
13 
128 507 
22 687 
Financial instruments and financial liabilities 
14 
685 
280 
Provisions 
15 
46 
1 640 
Current tax liability 
15 
8 567 
- 
Total current 
liabilities 
141 574 
27 638 
Total liabilities 
2 899 456 
2 457 389 
Total equity and liabilities 
7 851 375 
7 257 949 
The notes 
presented 
on pages 
5 to 40 form 
an integral 
part of these 
financial 
statements. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
Statement of comprehensive income 
For the year ended 31 December 2022 
In thousands of EUR 
Note 
2022 
2021 
Sales: Services 
817 
667 
Total sales
817 
667 
Cost of sales: Services 
(41) 
(15) 
Total cost of sales 
(41) 
(15) 
Subtotal 
776 
652 
Personnel expenses 
16 
(3 670) 
(2 290) 
Taxes and charges 
(1 602) 
(140) 
Other operating 
income 
21 
3 702 
2 385 
Other operating expenses 
21 
(5 012) 
(8 029) 
Profit (loss) from operations 
(5 806) 
(7 422) 
Interest income under 
the effective interest 
method 
17 
44 915 
31 645 
Interest expense 
17 
(50 288) 
(48 787) 
Other finance expense 
17 
(1 993) 
(2 246) 
Other finance income 
17 
28 
- 
Foreign currency 
differences 
17 
26 764 
12 044 
Profit (loss) from 
derivative instruments 
17 
24 904 
10 948 
Dividend income 
17 
37 937 
299 401 
Change in allowance for 
financial instruments 
17 
(3 041) 
(1 827) 
Net finance income 
79 226 
301 178 
Profit (loss) before income 
tax 
73 420 
293 756 
Income tax 
18 
(10 851) 
57 
Profit (loss) from continuing 
operations 
62 569 
293 813 
Profit (loss) for the year 
62 569 
293 813 
Other comprehensive 
income 
Items that are or may be reclassified 
subsequently to profit 
or loss 
Effective portion of changes 
in fair value of cash-flow 
hedges, 
net of tax 
18 
88 790 
32 553 
Foreign currency translation 
differences from presentation 
currency 
- 
248 979 
Other comprehensive 
income for the 
year 
88 790 
281 532 
Total comprehensive income for the year
151 359 
575 345 
Basic and diluted 
earnings per share 
in EUR 
11 
0.19
0.91 
The notes presented on 
pages 5 to 40 form an 
integral part of these 
financial statements. 

 
 
 
 
 
 
3 
Statement of changes in equity
In thousands of EUR 
Share 
capital 
Share 
premium 
Other capital 
contributions 
Foreign 
currency 
translation 
reserve 
Retained 
earnings 
Valuation 
differences 
on cash flow 
hedges 
Total equity 
Balance at 31 December 
2020
2 988 423
8 247
695 819
170 722
530 606 
(68 602)
4 325 215
Comprehensive income for 
the period 
 
 
Profit for the period 
-
-
-
-
293 813 
-
293 813 
Other comprehensive income 
for the period 
Effective portion of changes 
in fair value of cash flow 
hedges, net of tax 
-
-
-
-
- 
32 553
32 553
Foreign currency translation 
differences 
- 
- 
- 
248 979 
- 
- 
248 979 
Total comprehensive 
income for the period 
-
-
-
248 979
293 813 
32 553
575 345
Contributions by and 
distributions to owners
Dividends to equity holders 
-
-
-
-
(100 000) 
-
(100 000)
Balance at 31 December 
2021
2 988 423
8 247 
695 819
419 701
724 419 
(36 049)
4 800 560
Comprehensive 
income 
for 
the period
 
 
Profit for the period 
-
-
-
-
62 569 
-
62 569
Other comprehensive income 
for the period 
Effective portion of changes 
in fair value of cash flow 
hedges, net of tax 
-
-
-
-
- 
88 790
88 790
Foreign currency translation 
differences
259 767
716
74 816
(419 701)
85 039
(637)
- 
Total comprehensive 
income for the period
259 767
716
74 816
(419 701)
147 608 
88 153
151 359
Contributions by and 
distributions to owners 
Dividends to equity holders
-
-
-
-
- 
-
-
Balance as at 31 December 
2022 
3 248 190
8 963
770 635
-
872 027 
52 104
4 951 919
The notes presented on 
pages 5 to 40 form an 
integral part of these 
financial statements. 

 
 
 
 
 
 
 
 
 
4 
Cash flow statement 
For the year ended 31 December 2022 
in thousands of EUR 
Note 
2022 
2021 
OPERATING ACTIVITIES 
Profit for the 
year 
62 569 
293 813 
Adjustments for: 
Income tax 
18 
10 851 
(57) 
Depreciation 
and amortisation 
- 
- 
Change in provisions 
(1 595) 
1 505 
Change in adjustments 
for financial instruments 
and write-off of 
receivables 
17 
3 041 
2 913 
Interest income 
and expense 
17 
5 373 
17 143 
Other finance expenses 
17 
1 993 
2 246 
Dividend income 
17 
(37 937) 
(299 401) 
Profit/(loss) 
on derivative instruments 
17 
(24 904) 
(10 948) 
Foreign exchange gains/(losses), net 
(26 764) 
(11 283) 
Operating profit before changes in working capital 
(7 373) 
(4 069) 
Change in trade receivables and other assets 
445 
(2 453) 
Change in trade payables and other liabilities 
738 
2 122 
Change in inventories 
741 
-664 
Cash generated from (used in) operations 
(5 449) 
(5 064) 
Interest paid 
5 
(45 233) 
(38 839) 
Income taxes 
paid 
- 
- 
Cash flows 
generated from 
(used in) operating 
activities
(50 682) 
(43 903) 
INVESTING 
ACTIVITIES
Dividends 
received 
37 937 
433 048 
Settlement 
flows 
of financial instruments 
468 
(21 628) 
Advances to 
related parties 
(402 943) 
(136 425) 
Interest 
received 
- 
- 
Repayments from 
related parties 
256 000 
26 357 
Cash flows from (used in) investing activities
(108 538) 
301 352 
FINANCING 
ACTIVITIES
Proceeds from 
loans received 
5 
400 000 
116 721 
Repayment of 
borrowings 
5 
- 
(692 650) 
Proceeds from 
debentures issued 
5 
- 
509 651 
Debentures redeemed 
5 
- 
(70 737) 
Finance fees, 
charges paid 
(611) 
(5 605) 
Dividends paid 
5 
- 
(98 324) 
Cash flows from (used 
in) financing activities
399 389 
(240 944) 
Net increase (decrease) in cash and cash equivalents 
240 169
16 505 
Cash and cash equivalents at beginning of the year 
29 044 
16 045 
Effect of exchange rate fluctuations on cash held 
680 
(3 506) 
Cash and cash equivalents at end of the year 
269 893 
29 044 
The notes presented on 
pages 5 to 40 form an 
integral part of these 
financial statements. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 
Notes to financial statements
1. 
Background 
EP Infrastructure, a.s. (the “Company” or “EPIF”) was registered on 6 
December 2013 by subscription 
of share capital 
in form of a monetary 
contribution of CZK 
2,000 thousand. 
The Company’s principal 
activity 
is the 
management of 
its own 
assets. The 
basic 
mission of 
the Company 
is 
the 
strategic 
management 
and 
development 
of 
companies 
directly 
or 
indirectly 
controlled 
by 
the Company, 
coordination 
of 
their 
activities, 
and 
management, 
acquisition 
and 
disposing 
of 
the 
Company’s 
ownership 
interests and other 
assets. 
The 
financial 
year 
is 
identical 
with 
the 
calendar 
year. 
The 
financial 
statements 
were 
prepared 
for 
the period 
from 
1 
January 2022 
to 
31 
December 2022 
(“2022”). The 
comparable period 
(“2021”) is 
the financial year from 1 January 
2021 to 31 December 
2021. 
Registered office
Pařížská 130/26 
Josefov 
110 00 Prague 1 
Czech Republic 
The shareholders of the Company 
as at 31 December 2022 
were:
Interest in share capital
Voting rights
In thousands 
EUR 
%
%
EPIF Investments 
a.s. 
2 241 251 
69% 
69%
CEI INVESTMENTS 
S.à r.l. 
1 006 939 
31% 
31%
Total
3 248 190
100%
100%
The shareholders of the Company 
as at 31 December 2021 
were:
Interest in share capital
Voting rights
In thousands 
EUR 
%
%
EPIF Investments 
a.s. 
2 062 012 
69% 
69%
CEI INVESTMENTS 
S.à r.l. 
926 411 
31% 
31%
Total
2 988 423
100%
100%
The change in interest in share 
capital is due to the change 
in the Company’s functional currency from 
1 January 2022. For more details, refer to Note 2(c) and 3(a) to the financial 
statements. 
The shareholders of Energetický a průmyslový holding, 
a.s., the 100% owner of EPIF Investments a.s. 
as at 31 December 
2022 and 31 
December 
2021 were: 
Interest in share capital 
Voting rights 
% 
% 
EP Corporate Group, a.s. 
56% + 1 share 
56% + 1 share 
J&T ENERGY HOLDING, a.s 
 
44% - 1 share
44% - 1 share
•
Total 
•
•
100% 
•
•
100% 
The 
consolidated financial 
statements 
of 
the 
widest group 
of 
entities 
for 
2022 
will 
be 
prepared by 
EP 
Investment S.á r.l. with its 
registered office at 2 Place de Paris, 
2314 Luxembourg. 

6 
The consolidated financial statements of 
the widest group 
of entities for 
2021 have 
been prepared by 
EP 
Investment S.à r.l. with its registered 
office at Avenue John F. Kennedy 39, L-1855 Luxembourg. 
The 
Company 
prepares 
its 
consolidated 
financial 
statements 
in 
accordance 
with 
the 
International 
Financial 
Reporting 
Standards 
adopted 
by 
the 
European 
Union 
(“EU”). 
The 
Czech 
translation 
of the consolidated 
financial 
statements 
along 
with 
the 
single 
financial 
statements 
form 
the 
annual 
financial report, which will be published in the Commercial Register. 
Members of the Board of Directors 
and Supervisory Board as 
at 31 December 2022 
were: 
Members of the Board of Directors 
Members of the Supervisory 
Board 
Daniel Křetínský 
(
chairman
) 
Jan Špringl 
(
chairman
) 
Stephan Brimont 
(
vice-chairman
) 
Martin Gebauer 
(
vice-chairman
) 
Gary Wheatley Mazzotti 
(
vice-chairman
) 
Petr Sekanina 
(
member
) 
Marek Spurný 
(
member
) 
Jiří Feist 
(
member
) 
Pavel Horský 
(
member
) 
Jan Stříteský 
(
member
) 
Milan Jalový 
(
member
) 
Rosa Maria Villalobos Rodriguez 
(
member
) 
William David George Price 
(
member
) 
Changes and amendments made to the Register of Companies in 
the reporting period 
On 24 February 2022, Jiří Zrůst was removed from the Register of Companies 
as Vice-Chairman with 
the termination date of 28 November 2021 
and Stéphane Brimont was recorded as Vice-Chairman. 

7 
2. 
Basis of 
preparation
(a) 
Statement of compliance
The 
financial statements have 
been prepared 
in accordance 
with international 
accounting standards 
(International Accounting Standards – IAS and International Financial Reporting Standards – 
IFRS) 
issued 
by the International Accounting 
Standards Board 
(IASB), as adopted by 
the EU. 
The financial 
statements were 
approved by 
the Board of 
Directors of 
the Company 
on 24 March 
2023. 
These financial 
statements are non-consolidated. 
(b) 
Valuation method 
The 
financial 
statements 
have 
been 
prepared 
on 
a 
going-concern 
basis 
using 
the 
historical 
cost 
method, 
except for 
the 
following material 
items in 
the 
statement of 
financial position, 
which are 
measured at fair 
value: 
●
derivative financial 
instruments. 
The Company has consistently applied the 
following accounting policies to all periods presented in 
these 
financial statements. 
(c) 
Functional and 
presentation currency 
The Company’s functional and presentation 
currency is the Euro (“EUR”). 
(d) 
Use of estimates and judgments
The 
preparation 
of 
financial 
statements 
in 
accordance 
with 
International 
Financial 
Reporting 
Standards 
requires the 
use of 
certain critical accounting estimates 
that affect 
the reported 
amounts 
of assets, liabilities, 
income 
and 
expenses. 
It 
also 
requires 
management 
to 
exercise 
judgement 
in 
the process 
of 
applying 
the 
Company’s accounting policies. The resulting accounting 
estimates, by 
definition, will 
not always 
be equal 
to the related actual 
values. 
Estimates 
and 
assumptions 
are 
reviewed 
on 
an 
ongoing 
basis. 
Revisions 
to 
accounting 
estimates 
are 
recognised in the period in which the estimate 
is revised (if the revision affects only that period), 
or in 
the 
period of the revision 
and future periods (if the 
revision affects the current 
period as well as 
future periods). 
(a)
Assumption and estimation 
uncertainties
Information 
about 
assumptions 
and 
estimation 
uncertainties 
that 
have 
a 
significant 
risk 
resulting 
in 
a 
material adjustment 
in the following years 
is included in the 
following notes: 
i.
Note 8 – Financial 
instruments and financial 
receivables 
ii.
Note 14 – Financial 
instruments and financial 
liabilities 
Determination of 
fair values
A 
number 
of 
the 
Company’s 
accounting 
policies 
and 
disclosures require 
the 
measurement of 
fair 
values, for both 
financial and non-financial 
assets and liabilities. 
The Group, of 
which the Company 
is a component, 
has an established 
control framework 
with respect 
to 
the measurement of fair values. This includes a 
valuation team that has overall responsibility for 
overseeing 
all significant fair 
value measurements, 
including Level 3 
fair values. 
The 
valuation 
team 
regularly 
reviews 
significant 
market 
unobservable 
inputs 
and 
valuation 
adjustments. 
If third party information, such as broker quotes 
or pricing services, is used to measure 
fair values, 
then the 
valuation team assesses 
the evidence 
obtained from the 
third parties 
to support 
the 
conclusion that 
such 
valuations meet 
the 
requirements of 
IFRS, including 
the 
level 
in 
the 
fair 
value hierarchy 
in 
which such 
valuation should 
be classified. 
When measuring the fair value of an asset or a liability, the Company 
uses market observable data 
as 

8 
far as 
possible. Fair 
values are 
categorised into 
different levels 
in 
a 
fair value 
hierarchy based 
on 
the inputs used 
in the valuation techniques 
as follows: 
Level 1: quoted prices (unadjusted) 
in active markets 
for identical assets 
or liabilities 
Level 
2: 
inputs 
other 
than 
quoted 
prices 
included 
in 
Level 
1 
that 
are 
observable for 
the 
asset 
or 
liability, 
either directly 
(i.e. as prices) or 
indirectly (i.e. 
derived from prices) 
Level 3: 
inputs for the 
asset or liability that 
are not based 
on observable market data (unobservable 
inputs). 
If the inputs used to measure the fair value 
of an asset or a 
liability might be categorised in different 
levels 
of 
the 
fair value 
hierarchy, 
then 
the 
fair value 
measurement is 
categorised in 
its 
entirety in 
the same 
level 
of 
the fair 
value hierarchy 
as 
the lowest 
level input 
that is 
significant to 
the entire 
measurement. 
The 
Company 
recognises 
transfers 
between 
levels 
of 
the 
fair 
value 
hierarchy 
at 
the 
end 
of the 
reporting 
period during which 
the change has occurred. 
(e) 
Segment reporting
The 
Company’s 
activities 
represent 
one 
segment, 
i.e. 
holding 
of ownership 
interests 
and 
related 
activities. Most 
income 
is 
financial income 
and is 
described in 
detail in 
note 17 
to these 
financial 
statements. 
The 
Company 
reports 
sales 
of 
services 
provided 
to 
entities 
in 
the 
Czech 
Republic 
belonging 
to 
Energetický 
a 
průmyslový 
holding, 
a.s. 
(the 
“EPH 
Group”), 
which 
constitute 
a 
negligible part of 
revenues.
(f) 
Recently issued 
accounting standards
i. 
Newly adopted Standards
The following paragraphs provide a summary of the key requirements of IFRS that are effective for 
annual 
periods beginning 
on or after 1 January 
2022 
and that have been applied 
by the Company for 
the first 
time. 
Amendment to 
IFRS 3 
– Reference 
to the 
Conceptual Framework; IAS 
16 – 
Proceeds before 
Intended 
Use; 
IAS 
37 
– 
Onerous 
Contracts 
– 
Cost 
of 
Fulfilling 
a 
Contract 
and 
Annual 
Improvements to 
IFRSs – 
cycle 2018-2020 (effective 
for annual 
periods beginning on 
or after 
1 January 2022) 
The amendments to IFRS 3 update 
the references to the Conceptual Framework; the amendments to 
IAS 
16 
prohibit 
deducting 
from 
the 
cost 
of 
an 
item 
of 
property 
any 
proceeds 
from 
selling 
items 
produced while 
bringing the 
assets to 
the condition 
necessary for 
it to be 
capable of 
operating; instead, 
an 
entity 
recognises 
the 
proceeds 
and 
the 
cost 
of 
producing 
those 
items 
in 
profit 
or 
loss; 
and 
the amendments to IAS 
37 clarify 
which costs 
are considered 
by an 
entity when 
assessing whether 
a contract is onerous. 
Annual Improvements amend 
the following 
standards: IFRS 
1 First-time 
Adoption of 
International 
Financial Reporting 
Standards (simplifies 
the 
adoption of 
IFRS 
1 
for 
a 
subsidiary which 
becomes 
a first-time 
adopter 
later 
than 
its 
parent; 
amends 
the 
measurement 
of 
cumulative 
translation 
differences); IFRS 
9 Financial 
Instruments (clarifies which 
fees an 
entity considers when 
assessing 
whether the 
terms 
of 
the 
new 
or 
modified financial 
liability have 
changed materially 
compared to 
the terms of 
the original 
liability); IAS 
41 Agriculture 
(removes the 
requirement 
to exclude 
cash flows 
related to 
taxation when 
measuring fair 
value); as 
well as 
illustrative 
examples accompanying 
IFRS 16 
Leases. 
These amendments 
have no material 
impact on the Company’s 
financial statements. 
ii. Standards not 
yet effective 
As of the date of approval of 
these financial statements, 
while the following 
significant standards 
and 
amendments to standards have been issued, they have not yet 
been effective for the period ended 31 
December 2022 and 
the Company has 
not applied them: 

9 
IFRS 17 Insurance 
contracts (effective 
for annual 
periods beginning 
on or after 
1 January 
2023) 
and IFRS 4 – 
Extension of the 
temporary exemption from 
applying IFRS 9 
(effective 
for annual 
periods beginning 
on or after 
1 January 2023)
Insurance 
contracts 
combine 
the 
features 
of 
a 
financial 
instrument 
and 
of 
contracts 
for 
services. 
Furthermore, most insurance 
contracts generate 
cash flows of significant variability 
over a long time. 
To 
provide useful 
information about 
these features, 
IFRS 17 
combines the 
currently used 
methods 
of future 
cash flows’ valuation at present 
value with profit recognition over the term of the services’ 
provision under the contract, 
records insurance services 
separately from financial profit or loss from 
insurance, and requires entities to choose 
whether to present 
the full amount 
of financial 
profit or loss 
from insurance 
in profit or loss 
or whether to present 
a part of it in 
other comprehensive 
income. 
Considering 
the 
nature 
of 
the 
Company’s 
principal 
activities, 
the 
Company 
expects 
that 
the amendments 
will not have 
any impact on the 
Company’s financial statements. 
Amendment 
to IAS 
1 – Classification 
of Liabilities 
as Current 
or Non-Current 
and Non-Current 
Liabilities with 
Covenants 
(effective for 
annual periods 
beginning on 
or after 
1 January 2024 
(not yet endorsed 
by the EU)) 
The amendment ‘Classification 
of Liabilities as Current 
or Non-Current’ 
clarifies the classification 
of 
debts and other liabilities as 
current or non-current and defines 
how to determine whether debts 
and 
other liabilities 
in the statement 
of financial 
position with 
an uncertain 
settlement date 
are classified 
as 
current (due or repayable 
within one year) or non-current. 
The amendment specifies 
the classification 
requirements 
for debt 
instruments 
that the 
Company 
can settle 
by capitalisation. 
The amendment 
‘Non-
Current Liabilities 
with Covenants’ 
clarifies the 
information an 
entity provides 
when the 
right to defer 
settlement of a 
liability for at 
least twelve months 
after the balance 
sheet date is subject 
to covenants. 
The Company is currently 
examining the impact 
of the amendments 
on the financial 
statements. 
Amendments 
to 
IAS 
1 
and 
IFRS 
Practice 
Statement 
2 
– 
Disclosure 
of 
Accounting 
Policies 
(effective for annual 
periods beginning 
on or after 1 January 
2023) 
The amendments introduce the term “material accounting policy information”, specify that an entity 
is 
obliged 
to 
disclose 
material 
accounting 
policy 
information, 
clarify 
that 
the 
information 
may 
be 
material 
even 
if 
the 
related 
amounts 
are 
immaterial. 
Additionally, 
they 
define 
how 
an 
entity 
may 
determine this material information. 
The Company is currently examining the impact of the amendments on 
the financial statements. 
Amendments 
to 
IAS 
8 
– 
Definition 
of 
Accounting 
Estimates 
(effective 
for 
annual 
periods 
beginning on or 
after 1 January 2023) 
The amendments introduce 
a new 
definition of an 
accounting estimate, require 
that entities making 
accounting estimates measure 
items in the 
financial statements 
in a 
way that involves 
measurement 
uncertainty. 
In addition, 
they clarify 
that a 
change in 
an accounting 
estimate that 
results from 
new 
information is not the correction of an 
error and may affect only the current period’s profit or loss, 
or 
the profit or loss of both the current period and future periods. 
The Company is currently examining the impact of the amendments on 
the financial statements. 
Amendments to IAS 
12 – Deferred 
Tax 
related to 
Assets and 
Liabilities arising from 
a Single 
Transaction (effective for annual periods 
beginning on or 
after 1 January 2023) 
The amendments define exemptions from 
the initial recognition of 
a deferred tax asset 
and deferred 
tax 
liability 
from 
a 
single 
transaction 
that 
is 
not 
a 
business 
combination 
and 
has 
no 
impact 
on 
accounting or taxable profit. 
In transactions that give rise 
to equal taxable and deductible 
differences, 
an entity must 
recognise a deferred tax 
asset and deferred 
tax liability and 
exemptions do not 
apply 
to initial recognition. 
The Company is currently examining the impact of the amendments on 
the financial statements. 

10 
Amendments to 
IFRS 17 
Insurance Contracts 
– Initial 
Application of 
IFRS 17 
and IFRS 
9 - 
Comparative Information (effective 
for annual periods 
beginning on or 
after 1 January 
2023) 
The 
amendments 
introduce 
a 
transitional 
provision 
that 
relates 
to 
the 
information 
presented 
for 
financial 
assets 
in 
the 
comparative 
period 
on 
initial 
application 
of 
IFRS 
17. 
The 
amendments 
are 
aimed 
at 
helping 
entities 
to 
avoid 
temporary 
accounting 
mismatches 
between 
financial 
assets 
and 
insurance contract liabilities. 
Considering the 
nature of 
the Company’s principal 
activities, 
these amendments 
will have 
no material 
impact on the Company’s financial statements. 
Amendments to IFRS 16 
– Lease Liability in a 
Sale and Leaseback (effective 
for annual 
periods 
beginning on or 
after 1 January 2024 
(not yet endorsed 
by the EU)) 
The amendments 
clarify how 
a seller-lessee 
subsequently measures 
sales and 
leasebacks 
that meet 
the requirements 
of IFRS 
15 for 
being accounted 
for as 
sales. The 
seller-lessee subsequently 
measures 
the lease liability arising from a leaseback in a way that it does not recognise any amount of the gain 
or loss that relates to the right of use it retains. 
The Company is currently examining the impact of the amendments on 
the financial statements. 
The 
Company 
has 
not 
early 
adopted 
any 
IFRS 
standards 
where 
adoption 
is 
not 
mandatory 
at 
the reporting 
date. 
Where 
transition 
provisions 
in 
an 
adopted 
IFRS 
give 
an 
entity 
the 
choice 
of 
whether 
to 
apply 
new standards 
prospectively or 
retrospectively, 
the 
Company elects 
to 
apply 
the 
Standards prospectively from the date of transition. 
(g) 
Going concern assumption
In late 2019, first news concerning COVID-19 in China were published. 
In the first months of 2020, 
the 
virus spread 
worldwide and 
had 
an 
impact on 
the 
economy of 
the 
region where 
the 
Company 
operates. 
The Company’s management considers 
this event 
as one 
that needs 
to be 
disclosed in the 
2022 financial statements. Despite 
the constantly changing situation 
as at 
the date 
of publication of 
these financial statements, the management of the Company has not observed any significant impact 
on the Company’s operations. 
The Company’s management 
continues to 
monitor the 
situation closely 
and, if 
necessary, 
will take 
all reasonable steps 
to avert 
any negative 
impact of 
the situation 
on the 
Company. 
In relation 
to the 
ongoing military conflict in 
Ukraine and the 
related sanctions against 
the Russian 
Federation, 
the Company 
has identified 
risks and 
has taken 
reasonable 
measures to 
mitigate the 
impact 
on its business. 
Based on available 
information and 
current developments, 
the Company continuously 
analyses the 
situation and 
assesses its 
direct impact 
on the 
Company. The Company's 
management has 
assessed the potential impact 
of this situation on its operations 
and business and has concluded 
that it 
does 
not 
currently 
have 
a 
material 
impact 
on 
these 
financial 
statements 
or 
on 
the 
going 
concern 
assumption in 
2023. However, 
further negative 
developments of 
this situation 
cannot be 
ruled out, 
which could 
subsequently have a 
negative impact on 
the Company, 
its business, 
financial position, 
results of operations, 
cash flows and overall 
outlook. 

 
 
 
11 
3. 
Significant 
accounting 
policies
The Company has 
consistently applied the following accounting policies to 
all periods 
as 
presented 
in these 
financial statements, 
with the exemption of the issues described in more detail in Note 3(a) 
below. 
(a) 
Change in accounting policies 
As of 
1 January 2022, 
the functional currency of 
the Company was 
changed from the 
Czech crown 
(“CZK”) to 
the Euro. 
Based on 
an assessment of 
the primary 
and secondary criteria 
of IAS 
21, the 
EPIF 
Group’s 
management concluded 
that 
the 
Euro better 
describes the 
economic environment 
in 
which the Company 
operates. The 
change was mainly 
driven by the 
fact that the Euro 
has become the 
predominant 
currency in 
which funding 
sources and 
income from 
core activities 
(dividend 
income and 
service income) have been raised 
and management does not expect 
this to change in the future. As of 
the date of the change in functional currency, 
all of the Company's assets, equity and liabilities were 
converted from Czech 
crowns to Euros using 
the exchange rate 
at the date of the change 
in functional 
currency (EUR 
1 
= 
CZK 24.86). 
For non-monetary 
items, the 
amounts translated 
became the 
new 
historical costs. 
The change in the Company’s functional 
currency had the following 
impacts on the opening 
balances 
as of 1 January 
2022: 
In thousands of EUR 
Opening 
balances as 
of 1 
January 
2022 
Impacts 
of the 
change in 
functional 
currency 
Restated 
opening 
balances as of 1 
January 2022 
Share capital
2 988 423
259 767
3 248 190
Share premium
8 247
716
8 963
Other capital contributions 
695 819
74 816
770 635
Foreign currency translation reserve
419 701
(419 701)
0
Retained earnings 
724 419
85 039
809 458
Valuation 
differences on cash-flow hedges 
(36 049)
(637)
(36 686)
Total equity
4 800 560
0
4 800 560
(b) 
Cash and cash equivalents
Cash 
and 
cash 
equivalents 
comprise 
cash 
balances 
on 
hand 
and 
in 
banks, 
and 
short-term 
highly 
liquid 
investments with original 
maturities of three 
months or less. 
(c) 
Equity investments
As 
required 
by 
IAS 
27, 
the 
Company 
has 
applied 
measurement 
at 
cost 
for 
investments 
in 
subsidiaries, 
associates, and jointly controlled entities. In 
accordance with IFRS 9, cost is 
increased 
by 
a discount 
on provided 
interest-free loans. 
Equity investments 
are 
tested for 
impairment yearly 
(see Note 3 
(e)). 
(d) 
Non-derivative 
financial assets
i. 
Classification
On initial recognition, a financial asset is classified as measured 
at amortised cost, fair value through 
other 
comprehensive income 
– 
debt 
instrument (FVOCI), 
fair value 
through other 
comprehensive 
income – 
equity 
instrument 
or fair 
value through 
profit 
or loss 
(FVTPL). 
The classification 
of financial 
asset is based on the 
business model in 
which a financial 
asset is 
managed and its 
contractual cash 
flow characteristics. 
A financial asset 
shall be measured 
at amortised cost 
if both of the following 
conditions are 
met: 
•
the financial asset is held within a business model whose objective 
is to hold financial assets 
in 
order to collect 
contractual cash 
flows; and 
•
the contractual terms of the financial asset give rise on specified dates to cash flows that are 

12 
solely payments of 
principal and interest 
on the principal amount 
outstanding (“SPPI 
test”). 
Principal is the fair value 
of the financial asset 
at initial recognition. Interest 
consists of consideration 
for 
the 
time 
value 
of 
money, 
for 
the 
credit 
risk 
associated with 
the 
principal amount 
outstanding 
during 
a 
particular period 
of 
time 
and 
for 
other 
basic lending 
risks 
and 
costs, 
as 
well 
as 
a 
profit 
margin. Loans 
and 
receivables 
which 
meet the 
SPPI 
test 
and 
business 
model 
test 
are 
normally 
classified 
by 
the 
Company 
as 
financial asset 
at amortised cost. 
A 
debt 
instruments 
shall 
be 
measured 
at 
fair 
value 
through 
other 
comprehensive 
income 
if 
both 
of the following conditions are met: 
•
the 
financial 
asset 
is 
held 
within 
a 
business 
model 
whose 
objective 
is 
achieved 
by 
both 
collection 
contractual cash 
flows and selling 
financial assets; 
and 
•
the contractual terms of the financial asset give rise on specified dates to cash flows that are 
solely payments of 
principal and interest 
on the principal amount 
outstanding (“SPPI 
test”). 
The 
Company may 
make an 
irrevocable election at 
initial recognition 
for particular 
investments in 
equity instruments 
(except equity 
investments as 
described in 
Note 3 
(b)) that 
would otherwise 
be 
measured at 
fair value 
through 
profit or 
loss (as 
described 
below) 
and are 
not held 
for trading 
to present 
subsequent changes 
in fair value in other 
comprehensive income. 
All 
investments in 
equity instruments 
and 
contracts on 
those instruments 
must be 
measured at 
fair 
value. 
However, in 
limited circumstances, 
cost may 
be an 
appropriate 
estimate of 
fair value. 
That may 
be the case 
if insufficient recent information is 
available to measure fair 
value, or if 
there is a 
wide 
range of 
possible 
fair value measurements and cost represents the best estimate of 
fair value within 
that range. The Company 
uses all information about the performance and operations of the investee 
that becomes 
available after 
the 
date 
of 
initial 
recognition. 
To 
the 
extent 
that 
any 
such 
relevant 
factors 
exist, 
they 
may 
indicate 
that 
cost 
might not 
be representative of 
fair value. 
In such cases, 
the Company 
must use 
fair 
value. 
Cost 
is never 
the 
best estimate 
of fair 
value 
for investments 
in quoted 
instruments. 
A 
financial 
asset shall 
be measured 
at fair 
value through 
profit or 
loss unless 
it is 
measured at 
amortised 
cost or at fair value through other comprehensive income. The key type of financial assets measured 
at fair value through 
profit or loss by 
the Company are 
derivatives. 
The 
Company may, 
at 
initial 
recognition, irrevocably 
designate a 
financial asset, 
which 
would 
be 
measured 
at 
amortised cost 
or 
at 
fair 
value 
through other 
comprehensive income 
(“FVOCI”), as 
measured at fair value 
through 
profit 
or 
loss 
if 
doing 
so 
eliminates 
or 
significantly 
reduces 
a 
measurement 
or 
recognition inconsistency (sometimes 
referred to 
as 
an 
“accounting mismatch”) 
that 
would 
otherwise 
arise 
from 
measuring assets or liabilities or recognising 
the gains and losses 
on them on different bases. 
ii. 
Recognition
Financial assets are recognised on the 
date the Company becomes party 
to the contractual provision 
of the 
instrument. 
iii. 
Measurement
Upon initial 
recognition, financial assets 
are measured 
at 
fair value 
plus, in 
the 
case of 
a financial 
instrument 
not 
at 
fair 
value 
through 
profit 
or 
loss, 
transaction 
costs 
directly 
attributable 
to 
the 
acquisition 
of 
the 
financial 
instrument. 
Attributable 
transaction 
costs 
relating 
to 
financial 
assets 
measured 
at 
fair 
value 
through 
profit 
or 
loss 
are 
recognised in 
profit 
or 
loss 
as 
incurred. 
For the 
methods used 
to estimate 
fair 
value, refer to Note 
4 – Determination of 
fair value. 
Financial 
assets at 
FVTPL are 
subsequently 
measured 
at fair 
value, with 
net gains 
and losses, 
including 
any 
dividend income, 
recognised in profit 
or loss. 
Debt 
instruments 
at 
fair 
value 
through 
other 
comprehensive 
income 
(FVOCI) 
are 
subsequently 
measured 
at fair 
value. Interest income 
calculated using 
the 
effective interest 
rate method, foreign 
exchange gains and 
losses and 
impairment are 
recognised in 
profit or 
loss. Other 
gains and 
losses 

13 
are 
recognised 
in 
other 
comprehensive income and reclassified 
to profit or loss upon derecognition 
of the asset. 
Equity 
instruments 
at 
fair 
value 
through 
other 
comprehensive income 
(FVOCI) 
are 
subsequently 
measured 
at 
fair 
value. 
Dividends 
are 
recognised 
in 
profit 
or 
loss. 
Other 
gains 
and 
losses 
are 
recognised in 
other 
comprehensive income 
and are never reclassified 
to profit or loss. 
Financial assets 
at amortised cost 
are subsequently 
measured at amortised 
cost using effective 
interest 
rate 
method. Interest 
income, foreign exchange 
gains and 
losses, impairment 
and any 
gain or 
loss 
on 
derecognition are 
recognised in profit 
or loss. 
iv. 
De-recognition
A financial asset is derecognised when the contractual rights to the cash flows from the asset expire, 
or 
when 
the 
rights 
to 
receive the 
contractual cash 
flows 
are 
transferred in 
a 
transaction in 
which 
substantially 
all 
the 
risks 
and 
rewards 
of 
ownership 
of 
the 
financial 
asset 
are 
transferred. 
Any 
interest 
in 
transferred 
financial assets that 
is created 
or retained 
by the 
Company is 
recognised as 
a separate asset or 
liability. 
v. 
Offsetting of financial 
assets and liabilities
Financial assets and liabilities are offset, and the net amount is 
reported in the statement of financial 
position 
when the 
Company has 
a 
legally enforceable 
right to 
offset 
the 
recognised amounts 
and 
the transactions 
are 
intended to be settled 
on a net basis. 
(e) 
Impairment
i. 
Non-financial assets
The carrying amounts of the Company’s assets, except 
for 
deferred tax assets, (refer to Note 3 (k) – 
Income 
taxes) 
are 
reviewed 
at 
each 
reporting 
date 
to 
determine 
any 
objective 
evidence 
of 
impairment. 
If 
any 
such 
indication 
exists, 
the 
asset’s 
recoverable 
amount 
is 
estimated. 
For 
intangible assets 
that have an indefinite 
useful life 
or that 
are not 
yet available 
for use, 
the recoverable 
amount is estimated 
at least once every 
year 
at the same time. 
The recoverable amount of an asset or cash-generating unit (CGU) is the greater of its fair value less 
costs 
to sell and 
value in use. In 
assessing value 
in use, the 
estimated future 
cash flows 
are discounted 
to 
their 
present 
value 
using 
a 
pre-tax 
discount 
rate 
that 
reflects 
current 
market 
assessment 
of 
the 
time 
value of 
money and the risks 
specific to the asset. 
For the purpose of impairment testing, assets that cannot be 
tested individually are grouped together 
into 
the smallest identifiable 
group of assets that generates cash inflows 
from continuing use that are 
largely 
independent 
from the cash 
inflows of other 
assets or 
groups of assets (the 
“cash-generating 
unit”, or “CGU”). 
An impairment 
loss is 
recognised whenever the 
carrying amount 
of 
an asset 
or 
its 
cash generating 
unit 
exceeds its recoverable 
amount. Impairment 
losses are recognised 
in profit or loss. 
Impairment losses recognised in prior periods are assessed at each reporting date for 
any indications 
that 
the loss 
has decreased 
or no 
longer exists. 
An impairment loss 
is reversed 
if there 
has been 
a 
change in 
the 
estimates used to 
determine the recoverable amount. 
An impairment loss 
is reversed 
only to the extent that 
the asset’s 
carrying amount does not 
exceed the carrying amount 
that would 
have been determined, 
net of 
depreciation 
or amortisation, 
if no impairment 
loss had 
been recognised. 

14 
ii. 
Financial assets 
(including trade and other 
receivables and contract 
assets)
The Company 
measures loss 
allowances using 
expected credit 
loss (“ECL”) 
model for financial 
assets 
at 
amortised cost, debt instruments at FVOCI and contract assets. Loss allowances are measured on 
either of 
the following bases: 
(c)
12-month 
ECLs: 
ECLs 
that 
result 
from 
possible 
default 
events 
within 
the 
12 
months 
after 
the 
reporting date; 
(d)
lifetime 
ECLs: 
ECLs 
that 
result 
from 
all 
possible 
default 
events 
over 
the 
expected 
life 
of a financial 
instrument. 
The 
Company 
measures 
loss 
allowances 
at 
an 
amount 
equal 
to 
lifetime 
ECLs 
except 
for 
those 
financial 
assets 
for 
which 
credit 
risk 
has 
not 
increased 
significantly since 
initial 
recognition. 
For 
trade 
receivables 
and 
contract 
assets, 
the 
Company has 
elected 
to 
measure 
loss 
allowances at 
an 
amount equal to 
lifetime 
ECLs in simplified 
mode. 
The 
ECL model 
is 
based on 
the 
principle of 
expected credit 
losses. For 
the 
purposes of 
designing 
the ECL 
model, the 
portfolio of 
financial assets is 
split into 
segments. Financial assets 
within each 
segment are 
allocated to three stages 
(Stage I – III) or to a group of financial assets 
that are impaired 
at 
the 
date 
of 
the 
first 
recognition 
of 
purchased 
or 
originated 
credit-impaired 
financial 
assets 
(“POCI”). At the date 
of the 
initial recognition, 
the 
financial asset 
is 
included in 
Stage 
I 
or 
POCI. 
Subsequent 
to 
initial 
recognition, a 
financial asset is allocated to Stage II if there 
was a significant 
increase in credit risk since initial recognition 
or 
to Stage 
III if 
the financial 
asset 
has been 
credit-
impaired. 
The Company assumes 
that the credit risk 
on a financial asset 
has increased significantly 
if: 
(a) a financial 
asset or its 
significant portion is overdue for 
more than 30 
days (if a 
financial asset 
or 
its 
significant portion is overdue for more than 30 days 
but less than 90 days, 
and the delay 
does not indicate 
an increase in counterparty credit risk, the 
individual approach shall be used, 
and the financial 
asset shall 
be classified in Stage 
I); or 
(b)the Company negotiates debt 
restructuring with a debtor 
in financial 
difficulties (at 
the request 
of the debtor or the Company); 
or 
(a)
the probability of 
default (PD) of the 
debtor increases 
by 20%; or 
(b)
other 
material 
events 
have 
occurred 
which 
require 
individual 
assessment 
(e.g., 
development 
of 
external ratings 
of sovereign 
credit risk). 
At 
each 
reporting 
date, 
the 
Company 
assesses 
whether 
financial 
assets 
carried 
at 
amortised 
cost 
and 
investments 
to equity 
instrument 
are credit 
impaired. 
A financial 
asset is 
credit impaired 
when 
one 
or more 
events that 
have a 
detrimental 
impact on 
the estimated 
future cash 
flows of 
the financial 
asset 
have occurred. 
The Company considers 
financial asset 
to be credit-impaired 
if: 
(f)
a financial asset or 
its significant part 
is overdue for 
more than 90 days; or 
(g)
legal action has been taken 
in relation to the 
debtor, whose outcome or 
the actual process may 
have an impact on 
the debtor’s ability 
to repay the debt; 
or 
(h)
insolvency proceedings or 
similar proceedings 
under foreign 
legislation have 
been initiated 
in 
respect 
of 
the 
debtor, 
which 
may 
lead 
to 
a 
declaration 
of 
bankruptcy 
and 
the 
application 
for 
the opening of such 
proceedings has not been refused or rejected or the proceedings have not been 
discontinued within 30 
days of initiation 
((b) and (c) are considered 
as “Default event”); 
or 
(i)
the 
probability of 
default of 
the 
borrower increases by 
100% compared 
to the 
previous rating 
(which 
is not a relevant condition 
in the ECL model for 
intra-group loans 
and receivables); or 

15 
(j)
other 
material 
events 
have 
occurred 
which 
require 
individual 
assessment 
(e.g. 
development 
of external 
ratings of sovereign 
credit risk). 
For 
the 
purposes 
of 
ECL 
calculation, 
the 
Company 
uses 
components 
needed 
for 
the 
calculation, 
namely 
probability of default (“PD”), loss given 
default (“LGD”) and exposure at 
default (“EAD”). 
Forward-looking 
information 
means 
any 
future 
projected 
macroeconomic 
factor 
which 
has 
a significant impact 
on 
the 
development 
of 
credit 
losses. 
ECLs 
are 
present 
values 
of 
probability-
weighted estimate 
of 
credit 
losses. The Company 
considers 
mainly expected 
gross domestic 
product 
growth, 
reference interest 
rates, 
stock exchange 
indices or unemployment 
rates. 
Presentation of loss allowances
Loss 
allowances 
for 
financial 
assets 
measured 
at 
amortised 
cost 
are 
deducted 
from 
the 
gross 
carrying 
amount of the assets 
and the year-on-year 
change is recognised 
in the income statement. 
For 
debt securities at 
FVOCI, the loss 
allowance is recognised 
in OCI. 
(f) 
Non-derivative 
financial 
liabilities
The Company has the 
following non-derivative 
financial liabilities: 
-
loans and borrowings, debt 
security issues, bank 
overdrafts, and 
trade and other 
payables. 
Such 
financial 
liabilities 
are 
initially 
recognised 
at 
the 
settlement 
date 
at 
fair 
value 
plus 
any 
directly 
attributable 
transaction 
costs except 
for financial 
liabilities 
at fair value 
through profit 
or loss. 
Attributable 
transaction costs relating 
to financial assets measured 
at fair value through profit or loss 
are recognised 
in 
profit 
or 
loss 
as 
incurred. 
Financial 
liabilities 
are 
subsequently 
measured 
at 
amortised 
cost 
using 
the 
effective interest rate, 
except for 
financial liabilities at fair 
value through 
profit 
or 
loss. 
For 
the 
methods 
used to estimate fair 
value, refer to Note 
4 – 
Determination of fair 
value
. 
The 
Company 
derecognises 
a 
financial 
liability 
when 
its 
contractual 
obligations 
are 
discharged, 
cancelled 
or expire. 
(g) 
Derivative financial 
assets and liabilities
The 
Company holds 
derivative financial instruments 
to 
hedge its 
interest rate 
risk 
exposure. 
Derivatives 
are recognised 
initially at 
fair value, 
with attributable 
transaction 
costs recognised 
in profit 
or 
loss 
as 
incurred. Subsequent 
to 
initial 
recognition, derivatives 
are 
measured at 
fair 
value, 
and 
changes are 
accounted for as 
described below. 
Trading derivatives
When 
a 
derivative 
financial 
instrument 
is 
not 
designated 
in 
a 
qualifying 
hedge 
relationship, all 
changes in its fair 
value are recognised 
immediately in profit 
or loss. 
Separable embedded 
derivatives
Financial 
and 
non-financial 
contracts 
(where 
they 
have 
not 
already 
been 
measured 
at 
fair 
value 
through 
profit or loss) are 
assessed to determine 
whether they contain 
any embedded derivatives. 
Embedded 
derivatives 
are 
separated 
from 
the 
host 
contract 
and 
accounted 
for 
separately 
if the 
economic 
characteristics and 
risks of 
the 
host contract 
and the 
embedded derivative are 
not 
closely related. A separate 
instrument with the 
same terms as 
the embedded derivative 
would meet 
the definition of 
a derivative, 
and 
the combined 
instrument 
is not 
measured at 
fair value 
through profit 
or loss. 
Changes in 
the fair 
value of 
separable embedded derivatives are 
recognised immediately in 
profit or 
loss. 

16 
Cash flow hedges and 
fair value hedges
The majority of financial 
derivatives are held 
for hedging purposes, 
but 
some 
do not meet 
the criteria 
for hedge 
accounting as 
stated 
by IFRS 
9. These derivatives are designated for trading, and 
related 
profit and 
loss from 
changes in fair 
value is recognised 
in profit and loss. 
Hedging 
instruments 
consisting 
of 
derivatives 
associated 
with 
currency 
or 
interest 
rate 
risks 
are 
classified either as 
cash-flow hedges or fair 
value hedges. 
From 
the 
inception 
of 
the 
hedge, 
the 
Company 
maintains 
formal 
documentation 
of 
the 
hedging 
relationship 
and the Company’s 
risk management objective and strategy for undertaking the 
hedge. 
The Company also 
periodically 
assesses 
the hedging 
instrument’s effectiveness 
in offsetting 
exposure 
to changes 
in the 
hedged 
item’s fair value or cash 
flows attributable 
to the hedged risk. 
In the 
case 
of 
a 
cash flow 
hedge, the 
portion of 
the 
gain or 
loss 
on the 
hedging instrument 
that is 
determined to be 
an effective hedge is recognised in other 
comprehensive income 
and the ineffective 
portion of 
the 
gain or 
loss on 
the hedging instrument is 
recognised in profit 
or loss. 
If the 
hedging 
instrument no longer 
meets 
the 
criteria 
for 
hedge 
accounting, 
expires 
or 
is 
sold, 
terminated 
or 
exercised, 
then 
the 
hedge 
accounting is 
discontinued prospectively. 
If the 
intended transaction 
is 
no longer 
expected to occur, 
then 
the balance 
in equity 
is reclassified 
to profit 
or loss. 
In 
case the 
future 
intended transaction 
is still expected 
to occur then the balance 
remains in equity and is 
transferred to 
profit or loss when 
the hedged transaction 
affects profit or 
loss. 
In the case of 
a fair value hedge, 
the hedged item is remeasured 
for changes in fair value 
attributable 
to 
the 
hedged 
risk 
during 
the 
period 
of 
the 
hedging 
relationship. 
Any 
resulting 
adjustment 
to 
the carrying 
amount of 
the hedged 
item related 
to the 
hedged risk 
is recognised 
in profit 
or loss, 
except 
for the financial asset – 
equity instrument 
at FVOCI, for 
which the gain or 
loss is recognised 
in other 
comprehensive income. 
In the 
case of 
a fair 
value hedge, the 
gain or 
loss from 
re-measuring the hedging instrument 
at fair 
value is 
recognised in profit 
or loss. 
(h) 
Provisions
A provision 
is recognised 
in the statement 
of financial 
position when 
the Company 
has a present 
legal 
or 
constructive 
obligation 
as 
a 
result 
of 
a 
past 
event, 
when 
(i) 
it 
is 
probable 
that 
an 
outflow 
of 
economic benefits 
will 
be 
required 
to 
settle 
the 
obligation 
and 
when 
(ii) 
a 
reliable 
estimate 
of the 
amount can 
be 
made. 
Provisions 
are 
recognised at 
the 
expected 
settlement amount. 
Long-term 
obligations 
are 
reported 
as 
liabilities at 
the present 
value of 
their expected 
settlement amounts, 
if the 
effect of 
discount is 
material, 
using as a discount 
rate the pre-tax rate 
that reflects current 
market assessments 
of the time 
value of 
money 
and 
the 
risks 
specific 
to 
the 
liability. 
The 
periodic unwinding 
of 
the 
discount is 
recognised in profit 
or loss 
in finance costs. 
The effects 
of changes in 
interest rates, inflation 
rates and 
other factors 
are recognised in 
profit or 
loss in 
operating income 
or expenses. 
Changes in estimates 
of provisions 
can arise in particular 
from 
deviations 
from 
originally 
estimated 
costs, 
from 
changes 
in 
the 
settlement 
date 
or 
in 
the 
scope 
of 
the 
relevant 
obligation. 
Changes 
in 
estimates 
are 
generally 
recognised 
in 
profit 
or 
loss 
at 
the 
date 
of 
the 
change in 
estimate (see below). 
(i) 
Sales
Sales of services
The Company applies 
IFRS 15 to recognise 
sales from contracts 
with customers. 
Sales 
of 
services 
are 
recognised 
in 
profit 
or 
loss 
in 
proportion 
to 
the 
stage 
of 
completion 
of 
the 
transaction at the reporting date. The 
stage of completion is 
assessed by reference to surveys 
of 
work 
performed. 
No 
sales 
are 
recognised 
if 
there 
are 
significant 
uncertainties 
regarding 
the 
recovery of 
the 
consideration due 
and the associated 
costs. 

17 
(j) 
Finance income and costs
i. 
Finance income
Finance income 
comprises interest income 
on funds 
invested, dividend income, 
changes in 
the fair 
value of 
financial assets 
at 
fair 
value through 
profit or 
loss, foreign 
currency gains, 
gains on 
sale 
of investments in 
securities 
and 
gains 
on 
hedging 
instruments 
that 
are 
recognised 
in 
profit 
or 
loss. 
Interest 
income 
is 
recognised in profit 
or loss as it 
accrues, using 
the effective interest 
method. 
ii. 
Finance costs
Finance 
costs 
comprise interest 
expense 
on 
borrowings, unwinding 
of 
the 
discount 
on 
provisions, 
foreign 
currency losses, 
changes in 
the fair 
value of 
financial assets 
at fair 
value through 
profit or 
loss, 
fees 
and 
commissions expense 
for 
payment 
transactions and 
guarantees, impairment 
losses 
recognised on financial 
assets, and 
losses on hedging 
instruments that 
are recognised 
in profit or 
loss. 
(k) 
Income taxes
Income taxes comprise 
current and deferred 
tax. Income taxes are 
recognised in profit 
or loss, except 
to 
the 
extent 
that 
they 
relate 
to 
items 
recognised 
directly 
in 
equity 
or 
in 
other 
comprehensive 
income. 
Current tax 
consists of 
estimated 
income tax (tax 
payable or 
receivable) on 
the taxable 
income or loss 
for 
the 
reporting period, 
using tax 
rates 
enacted at 
the 
reporting date, 
and 
any 
adjustment to 
tax 
payable in 
respect of previous 
years. 
Deferred 
tax is 
measured 
using 
the balance 
sheet 
method, 
providing 
for temporary 
differences 
between 
the 
carrying 
amounts 
of assets 
and liabilities 
for financial 
reporting 
purposes 
and the 
amounts 
used 
for 
taxation 
purposes. No deferred 
tax is recognised 
on the following temporary 
differences: 
-
temporary differences arising 
from the 
initial recognition 
of assets 
or liabilities that 
affects 
neither 
accounting nor taxable 
profit or loss, and 
-
temporary differences relating to investments in subsidiaries to 
the extent that it 
is probable 
that 
they will not be reversed 
in the foreseeable 
future. 
The 
amount 
of 
deferred 
tax 
is 
based 
on 
the 
expected 
manner 
of 
realisation 
or 
settlement 
of the temporary 
differences, using 
tax rates enacted 
or substantively 
enacted at the reporting 
date. 
Deferred tax 
assets and 
liabilities are 
offset if 
there is 
a 
legally enforceable 
right to 
offset current 
tax 
liabilities and 
assets, and 
they relate 
to income 
taxes levied 
by the same 
tax authority 
on the same 
taxable 
entity, or on different tax entities, but there is an intention 
to settle current tax liabilities 
and 
assets on 
a net 
basis, or the tax assets 
and liabilities will 
be realised simultaneously. 
A deferred tax asset is recognised only to the extent 
that it is probable that future taxable profits 
will 
be 
available 
against 
which 
the 
unused 
tax 
losses 
and 
deductible 
temporary 
differences 
can 
be 
utilised. Deferred tax 
assets 
are reduced to the extent 
that it is no longer probable that 
the unused tax 
losses 
or temporary differences 
will be realised. 
(l) 
Dividends
Dividends are 
recognised within 
other 
comprehensive income 
as 
of 
the 
date 
when the 
Company’s 
right 
to 
receive 
the 
relevant income 
was 
established. 
Received shares 
on 
profit 
are 
recognised in 
current profit or 
loss, i.e. in the period 
when the payment of 
the profit share was 
declared. 

 
 
 
18 
4. 
Determination of fair values 
A number 
of the 
Company’s accounting 
policies 
and disclosures 
require 
the determination 
of 
fair value, 
for 
both 
financial 
and 
non-financial 
assets 
and 
liabilities. 
Fair 
values 
have 
been 
determined 
for 
measurement 
and/or disclosure purposes based 
on the following methods. When 
applicable, further 
information about 
the assumptions made in determining 
fair values is disclosed in the notes specific 
to that asset or liability. 
(a) 
Non-derivative 
financial assets
The 
fair 
value 
of 
financial 
assets 
at 
fair 
value 
through 
profit 
or 
loss, 
debt and equity instruments 
at fair value through other comprehensive income and financial 
assets at amortised cost 
is 
based on 
their quoted market 
price at the reporting 
date without any 
deduction 
for transaction 
costs. If 
a quoted 
market 
price 
is 
not 
available, 
the 
fair 
value 
of 
the 
instrument 
is 
estimated 
by 
the 
management 
of the Company, using pricing 
models or discounted 
cash flows techniques. 
Where discounted cash 
flow techniques are 
used, estimated future 
cash flows 
are based 
on the 
best 
estimates 
of 
the 
management 
of 
the 
Company 
and 
the 
discount 
rate 
is 
a 
market-related 
rate 
at 
the reporting date for 
an 
instrument 
with 
similar 
terms 
and 
conditions. Where 
pricing 
models 
are 
used, 
inputs 
are 
based 
on 
market-related 
measures at the reporting 
date. 
The fair 
value of trade 
and other receivables is 
estimated as the 
present value of future cash flows, 
discounted at the 
market rate of interest 
at the reporting 
date. 
The fair 
value of 
trade and 
other receivables 
and of 
financial 
assets 
held at 
amortised 
cost is 
determined 
for 
disclosure purposes 
only. 
(b) 
Non-derivative 
financial 
liabilities
Fair 
value, 
which 
is 
determined for 
disclosure 
purposes, 
is 
calculated based 
on 
the 
present 
value 
of future 
principal and interest cash flows, 
discounted at the market 
rate of interest 
at the reporting 
date. 
(c) 
Derivatives
The fair 
value of 
interest rate 
swaps is 
based on 
internal measurements arising from 
market prices. 
Those quotes 
are tested 
for 
reasonableness 
by 
discounting 
estimated 
future 
cash 
flows 
based 
on 
the 
terms 
and 
maturity 
of 
each 
contract 
and 
using 
market interest rates for a similar 
instrument at 
the measurement date. 
The 
fair 
value 
of 
other 
derivatives (currency) 
is 
estimated 
by 
discounting the 
difference 
between 
the forward 
values and 
the current 
values till 
maturity of 
the contract 
using a 
risk-free interest rate 
(based on 
zero-coupon rates). 
Fair values 
reflect the 
credit 
risk of 
the instrument 
and include 
adjustments 
to take 
account of 
the credit 
risk 
of the Company and 
the credit risk 
of the counterparty 
when appropriate. 
5. 
Cash and cash equivalents 
In thousands of 
EUR
31 December 
2022
31 December 
2021
Cash on hand 
1 
1 
Current accounts with banks 
269 892 
29 043 
Total cash and cash equivalents
269 893
29 044

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19 
Reconciliation 
of movement of liabilities 
and cash flows 
arising from financing 
activities: 
Loans from 
credit 
institutions 
Loans from 
other than 
credit 
institutions 
Issued 
debentures 
Retained 
earnings 
Total 
liabilities and 
retained 
earnings
Balance as at 31 December 2021 
- 
- 
2 362 655
724 419
3 087 074
Changes from financing cash flows
Received loans and borrowings and 
issued debentures 
400 000 
- 
- 
- 
400 000 
Repayment of borrowings and debentures 
- 
(115 185) 
- 
- 
(115 185) 
Dividends paid 
- 
- 
- 
- 
- 
Total change from financing cash flows 
400 000
(115 185)
- 
-
284 815
Effect of changes in functional 
currency
- 
- 
- 
85 039
85 039
Other liability changes 
- 
- 
- 
Transaction costs related to loans and 
borrowings (net) 
- 
- 
2 083 
- 
2 083 
Interest expense 
6 268 
1 940 
41 935 
- 
50 144 
Interest paid 
(3 422) 
- 
(41 395) 
- 
(45 357) 
Offset of a loan against a receivable from 
a loan granted 
- 
216 219
- 
-
216 219
Total liability-related 
other changes 
2 846
218 159
2 083
- 
223 088
Profit for the year 
- 
- 
-
62 569
62 569
Balance at 31 December 2022 
402 846
102 974
2 364 738
872 027
3 742 585
Loans from 
credit 
institutions 
Loans from 
other than 
credit 
institutions 
Issued 
debentures 
Retained 
earnings 
Total liabilities 
and retained 
earnings
Balance as at 31 December 2020 
582 610 
- 
1 925 482 
530 606 
3 038 698 
Changes from financing cash flows
Received loans and borrowings and 
issued debentures 
75 471 
41 250 
509 651 
- 
 
626 372 
Repayment of borrowings and debentures 
(668 773) 
(23 876) 
(70 732)
-
 
(763 381) 
Dividends paid 
- 
-
-
 
-98 324 
(98 324)
Total change from financing cash flows 
(593 302) 
17 374 
438 919 
(98 324) 
(235 333) 
Total effect of changes in foreign 
exchange rates
10 897
-
 
(8 513)
(1 676)
708
Other liability changes 
- 
- 
- 
Transaction costs related to loans and 
borrowings (net) 
- 
-
(3 359) 
-
(3 359)
Interest expense 
5 028 
51 
43 705 
-
48 784 
Interest paid 
(5 233) 
(28) 
(33 579) 
-
(38 840) 
Offset of a loan against a receivable from 
dividend 
- 
(17 397) 
- 
-
(17 397) 
Total liability-related 
other changes 
(205) 
(17 374) 
6 767 
-
(10 812) 
Profit for the year 
- 
-
-
293 813
293 813
Balance at 31 December 2021 
-
-
2 362 655 
724 419 
3 087 074 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20 
6. 
Equity 
investments
Equity investments 
 
 
Company name 
Total profit 
(+) 
loss (-) for the 
period 01/1/2022- 
31/12/2022 (in 
TCZK/TEUR) 
Equity at 
31/12/2022 
(in TCZK/TEUR) 
Net value of 
equity investment 
at 31/12/2022 
(in thousands of 
EUR) 
Net value of 
equity 
investment at 
31/12/2021
(in thousands of 
EUR) 
EP Energy, a.s. (“EPE”)* 
CZK 903 238 
CZK 30 458 424 
1 413 948 
1 406 287 
Czech Gas Holding Investment 
B.V. 
(“CGHI”)* 
EUR 33 444 
 
 
EUR 156 043 
387 109 
387 109 
EPH Gas holding B. V. 
(“EPHGH”)* 
EUR (11 419) 
EUR 373 945 
3 633 446 
3 620 384 
Plzeňská teplárenská, a.s. 
(“PLTEP”)* 
CZK 806 517 
CZK 5 614 260 
66 877 
66 877 
Total equity investments
5 501 380 
5 480 657 
*Data from unaudited 
financial statements 
as at 31 December 2022. 
All equity investments 
are fully owned 
by the Company, with the exception 
of Plzeňská teplárenská, 
a.s. (35%, with 
managerial control). 
In accordance with 
the accounting policy 
described in 3(c) 
Equity investments, 
the value of the 
equity 
investments was 
tested for impairment. 
The Company monitors 
the financial performance 
of its 
subsidiaries on 
a regular basis 
and evaluates scenarios 
for the performance 
of key subsidiaries. 
For the 
purpose of preparing 
the financial statements, 
the Company has 
evaluated scenarios 
of possible future 
developments based 
primarily on the 
utilisation of 
the respective gas 
transmission networks 
and 
supplies, 
on the development 
of the regulatory 
environment and 
gas and electricity 
consumption in 
Slovakia on the 
overall demand 
for gas transportation 
and gas storage 
services in the region 
and on the 
development of heat 
and electricity 
consumption and 
prices, which may 
have an impact 
on the value 
of the equity investments. 
The Company has 
used various scenarios 
of future developments, 
including 
pessimistic options 
arising from the 
uncertainties described 
in Note 2(g), which 
included, among other 
things, a complete 
cessation of Russian 
gas flows to EU 
countries. The continuation 
of the assumed 
level of Russian 
gas flow or capacity 
payments from the 
Russian customer 
is an important prerequisite 
for the asset value 
tests. 
However, future developments 
cannot be reliably 
predicted and therefore 
the 
need for adjustments 
to the values of 
the equity investments 
in future periods 
cannot be excluded. 
As 
part of the impairment 
testing performed, 
the Company did 
not identify any 
impairment of its 
equity 
investments as of 
31 December 2022 
that would require 
a valuation adjustment 
in the financial 
statements under 
applicable accounting 
regulations. 
As at 1 December 2022, 
the registered offices 
of the companies 
were as follows: 
EP Energy, a.s. 
Pařížská 130/26, 
Josefov, 110 00 Prague 1, Czech Republic 
Czech Gas Holding 
Investment 
B.V. 
Schiphol Boulevard 
477 Tower C4, 1118 BK Schiphol, Netherlands 
EPH Gas holding B. 
V. 
Schiphol Boulevard 
477 Tower C4, 1118 BK Schiphol, Netherlands 
Plzeňská teplárenská, 
a.s. 
Doubravecká 2760/1, Východní 
Předměstí, 301 00 Plzeň, Czech 
Republic 
In 2022, there were the following 
changes in the 
non-current financial assets: 
In line with the 
accounting policy discussed in Note 3c), the 
value of an investment in EP 
Energy, 
a.s. 
and EPH Gas Holding B. 
V. 
was increased by the discount 
from the provision of 
an interest-free loan in 
2022, in accordance with IFRS 9. 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
21 
7.
Loans at amortised cost
 
In thousands of EUR 
31 December 
2022 
31 December 2021 
Loans to other than credit institutions: 
EPH Gas Holding B. V. 
(“EPHGH”) 
718 095 
721 686 
Slovak Gas Holding B.V. 
(“SGH”) 
844 982 
827 508 
EP Energy, a.s. (“EPE”) 
 
77 769 
187 227 
Cash pool receivables: 
Subsidiaries and related entities 
388 777 
- 
Total 
 
2 029 623 
1 736 421 
Non-current 
- 
903 148 
Current 
2 029 623 
833 273 
Total 
2 029 623 
1 736 421 
Impairment arising from expected losses is described in Note 3e). 
As of 1 December 2022, 
the Company concluded a cash-pooling 
agreement with selected entities 
in the 
EPIF Group and recognises related short-term receivables and payables 
as of 31 December 2022. 
Fair value information
Fair values and the 
respective loans 
carried at amortised 
costs are disclosed 
in the following table: 
In thousands of EUR 
31 December 2022
31 December 2021
Carrying
amount
Fair value
Carrying
amount
Fair value
Loans 
EPHGH 
718 095 
720 089 
721 686 
732 171 
Loan 
SGH 
844 982 
853 611 
827 508 
839 341 
Loan 
EPE 
77 769 
76 425 
187 227 
183 769 
Cash pool receivables 
388 777 
388 777 
- 
- 
Total 
2 029 623 
2 038 902 
1 736 421 
1 755 281 
The 
fair 
value 
hierarchy of 
loans 
provided to 
non-financial institutions 
is 
based 
on 
Level 
3 
inputs 
(for detail 
of valuation methods 
refer to Note 2 (d) 
i 
– Assumption 
and estimation uncertainties
). 
8. 
Financial instruments and financial receivables 
In thousands of EUR 
31 December 
2022 
31 December 2021 
Hedging: 
of which 
46 800 
- 
Interest rate swaps related to cash flow 
hedge
46 800
-
Other purposes than hedging:
of which
721
393 
Currency derivatives held for trading 
721 
393 
Total 
47 521 
393 
Non-current 
46 836 
113
Current 
685 
280
Total 
47 521 
393 
Derivatives 
at 
fair 
value 
were 
categorised 
within 
Level 
2 
of 
the 
fair 
value 
hierarchy 
(for 
details 
on 
the valuation methods refer to Note 
2 (d) i 
– Assumption 
and estimation uncertainties
). 
 

 
 
 
 
 
 
 
 
 
22 
9.
Other receivables 
In thousands of EUR
31 December 2022
31 December 2021
Trade receivables 
959 
803 
Estimated receivables 
1 819 
4 
Advance payments 
35 
20 
Tax receivables 
- 
21 
Other receivables 
20 
2429 
Receivables from employees 
- 
1 
Total 
2 833
3 278 
Current
2 833
3 278
Total 
2 833 
3 278 
At 31 December 2022 
and at 31 December 
2021 no trade receivables 
and other assets 
were past due. 
The Company’s 
exposure to 
credit and 
currency risks 
and risk 
of impairment 
losses related 
to trade 
receivables and 
other assets is disclosed 
in Note 22 – 
Risk management 
policies and disclosures
. 
10. 
Equity 
Share capital and share premium
The 
authorised, 
issued 
and 
fully 
paid 
share 
capital 
of 
the 
Company 
as 
at 
31 
December 
2022 
and 
31 December 
2021 consisted 
of 222,870,000 
ordinary 
shares with 
a par 
value of 
CZK 250 
each (“Shares 
A”) 
and 
100,130,000 
shares, 
to 
which 
special 
rights 
are 
attached 
as 
specified 
in 
the 
Articles 
of Incorporation, 
with a par value 
of CZK 250 each 
(“Shares B”). 
Each shareholder is entitled 
to receive dividends and 
to cast 
1 vote 
per 1 
share with a 
nominal value 
CZK 250 at meetings 
of the Company’s shareholders. 
31 December 2022 
and 2021
Number of shares 
Ownership 
interest 
Voting 
rights 
In thousands of 
shares
250 CZK 
% 
% 
Shares A
 
Shares B 
EPIF Investments a.s. 
•
222,870 
•
69 
69 
CEI INVESTMENTS S.à r.l. 
•
100,130 
31 
31 
Total
•
222,870 
•
100,130 
100 
100 
Other reserves 
As of 31 December 2022 
and 31 December 2021, other reserves consist of a payment 
over and above 
the share capital 
balance in the 
form of loan capitalisation. 
11. 
Earnings per share
Basic earnings per share
Basic earnings 
per share 
in CZK per 
1 share of 
a nominal value 
of CZK 250 
(2021: in CZK 
per 1 share 
with a nominal value 
of CZK 250) were 
equal to EUR 0.19 
per 1 share (2021: 
EUR 0.91 per 1 share). 
The calculation of basic earnings per share as at 31 December 2022 
and as at 31 December 2021 
was 
based on 
profit attributable 
to 
ordinary shareholders of 
EUR 62,569 
thousand (2021: 
EUR 293,813 
thousand), 
and 
a 
weighted 
average 
number 
of 
ordinary 
shares 
outstanding 
of 323,000,000 
(2021: 
323,000,000). 

 
 
 
 
 
 
 
 
 
 
 
 
 
23 
Weighted average number of 
ordinary shares at 
31 December 
2022 
and 2021 
In pieces
Nominal 
Weighted 
Issued shares
•
323,000,00
0 
•
323,000,000 
of which as at 6 February 
2017 classified as: 
•
•
Shares A (1 share/CZK 250) 
•
222,870,00
0 
•
222,870,000 
Shares B (1 share/CZK 250) 
•
100,130,00
0 
•
100,130,000 
Total
323,000,000 
323,000,000 
Diluted earnings 
per share
As the Company 
issued no 
convertible debentures 
or other financial 
instruments with 
potential dilutive 
effects on ordinary 
shares, diluted 
earnings per share 
are equal to the 
basic earnings per 
share. 
12. 
Valuation 
differences on cash flow hedges 
Cash flow hedges – hedge 
of foreign currency risk 
with non-derivative 
financial liability
Due to the 
change in the 
functional currency 
on 1 January 
2022, the 
dividend cash 
flow hedge has 
been 
terminated as 
the Company 
will no 
longer be 
exposed to 
risk related 
to changes 
in FX 
rates. At 
the 
date of 
termination, the 
balance in 
equity was 
translated at 
(CZK to 
EUR) 24.86 
and a 
release table 
was 
set 
in 
EUR; 
the 
balance 
will 
be 
released 
against 
future 
dividends 
(the 
original 
hedged 
item) 
between 2022 and 2034 in line with the Company’s hedging policy. 
Cash flow
hedges 
(currency 
risk) 
Cash flow
hedges 
(currency 
risk)
– deferred tax 
Interest rate
swap 
(hedging) 
Interest rate
swap 
(hedging) – 
deferred tax 
Effect 
fromhedge
accounting
Balance at 31/12/2020
17 760
(3 374)
 
(102 454)
19 466
(68 602) 
Utilisation of cash 
flow hedges 
(2 156) 
-
-
-
(2 156) 
Revaluation of cash 
flow hedges 
23 763 
-
-
-
23 763 
Deferred tax – cash flow 
hedges 
-
(4 105) 
-
´- 
(4 105) 
Reclassified to profit 
for the period 
-
-
18 582
-
18 582 
Deferred tax – interest 
rate swaps 
-
-
-
(3 531) 
(3 531) 
Balance at 31/12/2021
39 367
(7 479)
(83 872)
15 935
(36 049) 
Foreign currency translation 
differences 
1 113 
(212) 
(1 900) 
362 
(637) 
Revaluation of cash 
flow hedges 
-
- 
97 479 
-
97 479 
Deferred tax – cash flow 
hedges 
-
611 
-
-
611 
Reclassified to profit 
for the period 
(3 220) 
-
15 197 
-
11 977 
Deferred tax – interest 
rate swaps 
-
-
-
(21 277) 
(21 277) 
Balance at 31/12/2022
37 260
(7 080)
26 904
(4 980)
52 104
 

 
 
 
 
 
 
 
 
 
24 
13.
Loans and borrowings
In thousands of 
EUR
31 December 
2022
31 December 
2021
Bank loan 
402 846 
- 
Issued debentures 
2 364 738 
2 362 655 
Cash pool liabilities 
102 974 
- 
Total 
2 870 558 
2 362 655 
Non-current 
2 742 051
2 339 968
Current 
128 507
22 687
Total 
2 870 558 
2 362 655 
The weighted average interest rate on financial liabilities for 2022 was 
2.1% without the effect of cash 
pool liabilities (2021: 1.9%).
Issued debentures at amortised 
cost
Details about debentures 
issued as at 31 December 
2022 
are presented in 
the following table: 
In thousands of EUR 
Principal 
Accrued 
interest 
Unamortised 
transaction 
costs 
Total 
Maturity 
Interest 
rate (%) 
Effective 
interest 
rate (%) 
EPIF 2024 Notes
750 000 
8 491 
(1 241) 
757 250
26/04/2024 
1,659 
1,786 
 
EPIF 2026 Notes
600 000 
4 273 
(2 008) 
602 265
30/07/2026 
1,698 
1,795 
 
EPIF 2028 Notes
500 000 
2 336 
(1 964) 
500 372
09/10/2028 
2,045 
2,117 
EPIF 2031 Notes
500 000 
7 587 
(2 736) 
504 851
02/03/2031 
1,816 
1,888 
Total 
 
2 350 000 
22 687 
(7 949) 
2 364 738 
- 
- 
- 
2024 Notes
On 26 
April 2018, the 
Company successfully placed at par 
its debut international offering 
of EUR 
750 
million. Notes 
are 
issued in the 
nominal value 
of 
EUR 
100,000 each 
and 
bear 
1.659% fixed 
rate 
and 
are 
unsecured (“2024 
Notes”). The 
2024 
Notes are 
listed on 
the 
Irish Stock 
Exchange 
(Euronext Dublin). 
Unless previously 
redeemed or cancelled, 
the 2024 Notes will 
be redeemed at 
their principal amount 
on 26 
April 2024. 
The Company 
may prematurely 
redeem all, 
but 
not part, 
of the 
2024 Notes 
at a 
redemption price 
equal 
to 
100% 
of 
the 
aggregate principal 
amounts thereof 
plus 
accrued 
and 
unpaid interest 
and 
additional amounts, if 
any, plus 
a “make whole” premium. Further, the Company may prematurely 
redeem 
all, 
but 
not 
part, 
of 
the 
2024 Notes 
at 
a price 
equal to 
100% of 
the 
aggregate principal 
amounts 
thereof 
plus 
accrued 
and 
unpaid 
interest 
and 
additional 
amounts, 
if 
any, 
upon 
the occurrence of 
certain changes 
in applicable 
tax laws. 
Upon the 
occurrence of a 
certain change 
of control events, the Company may be required to offer to redeem the 2024 
Notes prematurely at 
100 % 
of the 
principal 
amount 
prematurely 
redeemed, 
plus 
accrued 
and unpaid interest and 
additional 
amounts, if any. 
The 2024 Notes contain a covenant limiting certain 
types of distributions to issuer’s shareholders in 
certain 
circumstances. 
The 
Company 
has 
to 
monitor 
the 
ratio 
of 
total 
amount 
of 
Group’s 
net 
debt 
to 
Group’s 
EBITDA (i.e. net leverage) 
before certain types 
of distributions 
are carried out. 
The 2024 Notes are stated net of 
debt issue costs of CZK 140,815 thousand (EUR 5,416 thousand). 
These 
costs 
are 
allocated 
to 
the 
income statement 
over the 
term 
of 
the 
2024 
Notes through 
the 
effective interest 
rate of 1.786%. 
2026 Notes
On 30 
July 2019, 
the Company 
successfully placed at 
par 
its offering 
of EUR 
600 million 
1.698% 
fixed 
rate unsecured 
notes due 
in July 
2026 in 
the denomination 
of EUR 
100,000 
each (“2026 
Notes”). 
The 2026 
Notes are listed on 
the Irish Stock Exchange 
(Euronext Dublin). 
Unless previously redeemed or cancelled, the 2026 Notes will be redeemed 
at their principal amount 
on 
30 July 2026. 

25 
The 
Company may 
prematurely redeem 
all, 
but 
not 
part, of 
the 
2026 
Notes 
at 
a 
redemption price 
equal 
to 
100% 
of 
the 
aggregate 
principal 
amounts 
thereof 
plus 
accrued 
and 
unpaid 
interest 
and 
additional amounts, 
if any, 
plus a 
“make whole” premium. Further, 
the Company may prematurely 
redeem 
all, 
but 
not 
part, 
of 
the 
2026 
Notes at 
a 
price equal 
to 100% 
of the 
aggregate principal 
amounts 
thereof plus 
accrued and 
unpaid 
interest 
and additional amounts, if any, upon the occurrence 
of certain changes in 
applicable tax laws. Upon 
the 
occurrence of 
a certain 
change of 
control events, 
the Company 
may be 
required 
to offer 
to redeem 
the 2026 
Notes prematurely 
at 100 
% of 
the principal 
amount prematurely 
redeemed, plus 
accrued and 
unpaid 
interest and additional 
amounts, if any. 
The 2026 Notes contain 
a covenant limiting certain types of 
distributions to issuer’s shareholders in 
certain 
circumstances. The EPIF Group has to monitor the ratio of total 
amount of Group’s net 
debt 
to Group’s 
EBITDA (i.e. net leverage) 
before certain types 
of distributions 
are carried out. 
The 2026 
Notes are 
stated net 
of debt 
issue costs 
of CZK 
97,723 thousand 
(EUR 3,808 
thousand). 
These costs 
are allocated 
to the income statement 
over the 
term of 
the 2026 
Notes 
through the 
effective 
interest rate of 1.795%. 
2028 Notes
On 9 October 2019, the Company successfully placed 
at par its offering of EUR 500 million 2.045% 
fixed 
rate 
unsecured 
notes 
due 
in 
October 
2028 
in 
the 
denomination 
of 
EUR 
100,000 
each 
(“2028 Notes”). The 
2028 Notes are listed 
on the Irish Stock Exchange 
(Euronext Dublin). 
Unless previously redeemed or cancelled, 
the 2028 Notes will be redeemed at their principal amount 
on 
9 October 2028. 
The 
Company may 
prematurely redeem 
all, 
but 
not 
part, 
of 
the 
2028 
Notes at 
a 
redemption price 
equal 
to 
100% 
of 
the 
aggregate 
principal 
amounts 
thereof 
plus 
accrued 
and 
unpaid 
interest 
and 
additional amounts, 
if any, 
plus a 
“make whole” premium. Further, 
the Company may 
prematurely 
redeem 
all, 
but 
not 
part, 
of 
the 
2028 
Notes at 
a price 
equal to 
100% of 
the 
aggregate principal 
amounts 
thereof plus 
accrued 
and unpaid 
interest 
and additional amounts, if any, upon the occurrence 
of certain changes 
in applicable tax 
laws. Upon 
the occurrence of 
a certain 
change of control 
events, 
the Company 
may be 
required to 
offer to 
redeem 
the 2028 
Notes prematurely 
at 100 
% of 
the principal 
amount prematurely 
redeemed, plus 
accrued and 
unpaid 
interest and additional 
amounts, if any. 
The 2028 Notes contain 
a covenant limiting certain types of 
distributions to issuer’s shareholders in 
certain 
circumstances. The 
Company has 
to monitor 
the ratio 
of 
total amount 
of 
Group’s 
net 
debt 
to 
Group’s 
EBITDA (i.e. net leverage) 
before certain types 
of distributions 
are carried out. 

 
 
 
26 
The 2028 
Notes are 
stated net 
of debt 
issue costs 
of CZK 
75,261 thousand 
(EUR 2,962 
thousand). 
These costs 
are allocated 
to the income statement 
over the 
term of 
the 2028 
Notes 
through the 
effective 
interest rate of 2.117% 
2031 EPIF Notes 
On 2 
March 2021, 
the Company 
took advantage 
of favourable 
market conditions 
and successfully 
placed at par its offering 
of EUR 500 million 1.816% fixed rate unsecured notes 
due in March 2031 
in 
the 
denomination of 
EUR 100,000 
each 
(“2031 Notes”). 
The 2031 
Notes are 
listed on 
the Irish 
Stock Exchange (Euronext Dublin). Unless 
previously redeemed 
or 
cancelled, the 
2031 
Notes will 
be 
redeemed 
at 
their 
principal 
amount 
on 2 
March 2031. 
The proceeds 
from the 
notes were 
used 
primarily for early refinancing of Company’s financial liabilities. 
The 
Company may 
prematurely redeem 
all, 
but 
not 
part, of 
the 
2031 
Notes at 
a 
redemption price 
equal 
to 
100% 
of 
the 
aggregate 
principal 
amounts 
thereof 
plus 
accrued 
and 
unpaid 
interest 
and 
additional amounts, 
if 
any, 
plus a 
“make whole” 
premium. Further, 
the Company 
may redeem 
all, 
but 
not 
part, of 
the 
2031 
Notes at a price equal to 100% of the aggregate principal 
amounts thereof 
plus accrued 
and unpaid 
interest 
and 
additional 
amounts, 
if 
any, 
upon 
the 
occurrence 
of 
certain 
changes 
in 
applicable 
tax 
laws. 
Upon 
the 
occurrence 
of 
a 
certain 
change 
of 
control 
events, 
the Company 
may be 
required to 
offer to 
redeem 
the 2031 
Notes prematurely 
at 100 
% of 
the principal 
amount prematurely 
redeemed, plus 
accrued and 
unpaid 
interest and additional 
amounts, if any. 
The 2031 Notes contain 
a covenant limiting certain types of 
distributions to issuer’s shareholders in 
certain 
circumstances. 
EPIF 
has 
to 
monitor 
the 
ratio 
of 
total 
amount 
of 
Group’s 
net 
debt 
to 
Group’s 
EBITDA (i.e. net leverage) 
before certain types 
of distributions 
are carried out. 
The 2031 
Notes are 
stated net 
of debt 
issue costs 
of CZK 
86,145 thousand (EUR 
3,296 thousand). 
These costs 
are allocated 
to the income statement 
over the 
term of 
the 2031 
Notes 
through the 
effective 
interest rate of 1.888%. 
Fair value information:
The fair value of interest 
bearing instruments 
held at amortised 
cost is shown in the 
table below: 
In thousands of 
EUR
31 December 2022 
31 December 2021 
Carrying 
amount
Fair value
Carrying 
amount
Fair value
Bank loan
402 846 
410 075 
- 
- 
Issued debentures
2 364 738 
 
 
1 846 787 
2 362 655 
2 442 406 
Cash pool 
102 974 
102 974
- 
- 
Total
2 870 558
2 359 836
2 362 655
2 442 406
Issued 
debentures 
are 
categorised 
within 
Level 
1 
of 
the 
fair 
value 
hierarchy. 
Bank 
loans 
are 
categorised 
within Level 
3 of the 
fair value 
hierarchy (for 
detail of 
valuation methods 
refer to Note 
2 
(d) i – 
Assumption 
and estimation uncertainties
). 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
27 
14.
Financial instruments and financial liabilities
In thousands of EUR 
31 December 
2022 
31 December 2021 
Risk management purpose: 
of which 
-
89 670
Interest rate swaps for trading
-
89 760
Other purposes than hedging:
of which
721
393 
Currency derivatives held for trading 
721 
393 
Total 
721
90 063 
Non-current 
 
36 
89 783
Current 
685 
 
280
Total 
721 
90 063 
Derivatives 
at 
fair 
value 
were 
categorised 
within 
Level 
2 
of 
the 
fair 
value 
hierarchy 
(for 
details 
on 
the valuation methods refer to Note 
2 (d) i 
– Assumption 
and estimation uncertainties
). 
15.
Other liabilities
In thousands of EUR 
31 December 2022
31 December 2021
Trade payables 
3 366 
2 729 
Estimated payables 
44 
41 
Payroll liabilities 
187 
89 
Other tax liabilities 
169 
151 
Other liabilities
3 
21 
Provisions 
46 
1 640 
Current tax liability 
8 567 
- 
Total 
12 382 
4 671 
Current
12 382
4 671
Total 
12 382 
4 671 
The estimate of liabilities is based on contractual conditions or on invoices received after the balance 
sheet 
date, but before the 
issuance of 
the financial statements. 
Trade 
payables 
and 
other 
liabilities 
have 
not 
been 
secured 
as 
at 
31 
December 
2022 
and 31 December 2021. 
As at 31 December 2022 and 31 December 2021, no liabilities to tax 
authorities were overdue. 
16.
Personnel expenses
In thousands of 
EUR
2022
2021
Wages and salaries 
3 089 
1 908 
Compulsory social 
security contributions 
579 
381 
Other social 
expenses 
2 
1 
Total
3 670
2 290
The 
average 
number 
of 
employees 
in full time 
equivalent units 
during 
2022 
was 
23 
(2021: 
17), 
of which 
7 (2021: 
7) were executives. 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
28 
17. 
Finance income and 
expense, profit (loss) from financial 
instruments
Recognised in profit 
or loss
In thousands of 
EUR
2022 
2021 
Interest income 
(under the effective 
interest method) 
44 915 
31 645 
Dividend income 
Net foreign 
exchange gain 
37 937 
26 764 
299 401 
12 044 
Other finance income 
28 
- 
Finance income
109 644
343 090
Interest expense 
(under the effective 
interest method) 
(50 288) 
(
48 787) 
Fees and commissions 
expense for 
payment transactions 
(1 993) 
(2 246) 
Loss from allowances 
to loans/equity investments 
(3 041) 
(1 827) 
Finance expense
 
(55 322)
(52 860)
Profit (loss) from 
hedging derivatives 
(15 197) 
(18 582) 
Profit (loss) from 
interest rate derivatives held for 
trading 
40 073 
29 530 
Profit (loss) from 
currency derivatives held for trading 
28 
- 
Profit (loss) from 
financial instruments
24 904
10 948
Net finance income 
(expense) recognised 
in profit or 
loss
79 226
301 178
18.
Income tax 
expenses 
Income tax recognised 
in profit or loss 
In thousands 
of EUR
2022 
2021 
Current taxes:
Current year 
(8 431) 
- 
Adjustment for 
prior periods 
- 
- 
Total current taxes
(8 431)
-
Deferred taxes: 
Origination and reversal 
of temporary differences
 
(1)
(
2 420) 
57 
Total deferred taxes
(2 420)
57 
Total income taxes (expense) 
recognised in the 
statement 
of comprehensive income 
for continuing 
operations 
(
10 851) 
57 
(1) For details refer to Note 
16 - Deferred tax assets 
and liabilities.
Deferred tax 
was calculated 
using currently 
enacted tax 
rate expected 
to apply 
when the 
asset is 
realised, 
or the liability settled. According to Czech legislation, 
the corporate income tax rate was 
19% for the fiscal 
year 2022 
(19% for 2021). 
Income tax recognised 
in other comprehensive 
income 
In thousands of 
EUR 
2022 
Gross 
Income tax 
Net of income tax 
Effective portion of changes in fair value of hedging 
instruments (currency risk) 
(3 221) 
612 
(2 609) 
Effective portion of changes in fair value of hedging 
instruments (interest rate risk) 
112 676 
(21 277) 
91 399 
Total 
109 455 
(20 665) 
88 790 
In thousands of 
EUR 
2021 
Gross 
Income tax 
Net of income tax 
Effective portion of changes in fair value of hedging 
instruments (currency risk) 
21 607 
(4 105) 
17 502 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
29 
Effective portion of changes in fair value of hedging 
instruments (interest rate risk) 
18 582 
 
(3 531) 
15 051 
Total 
40 189 
(7 636) 
32 553 
Reconciliation of 
effective tax rate
In thousands of EUR 
2022 
2021 
% 
% 
Profit from continuing operations before tax 
73 420 
293 756 
Income tax using the Czech domestic rate (19 %) 
19.0 
(13 950) 
19.0 
(55 813) 
Non-taxable income 
- dividends
(9.8) 
7 196 
(19.4) 
56 886 
Other non-taxable 
income
(1.2) 
898 
Non-deductible expenses 
- interest
8.2 
(5 990) 
1.8 
(5 260) 
Non-deductible expenses 
- other 
financial expenses
0.4 
(320) 
0.3 
(928) 
Non-deductible expenses 
– provisions and 
allowances
0.0 
(9) 
0.2 
(598) 
Non-deductible expenses 
- other
3.5 
(2 580) 
0.5 
(1 485) 
Other effects 
on profit or loss
0.0 
0 
0.0 
0 
Change in unrecognised 
deferred tax asset
(5.3) 
3 888 
(1.7) 
5 075 
Other differences in financial instruments held at amortised costs 
0.0 
16 
(0.7) 
2 180 
Income taxes recognised in the comprehensive income 
statement 
14.7 
10 851 
0.0 
57 
 
19. 
Deferred tax assets 
and liabilities
The following deferred 
tax assets and liabilities 
have been recognised: 
In thousands of EUR 
31 December 
2022 
31 December 
2022 
31 December 
2021 
31 December 
2021 
Temporary difference related to:
Assets 
Liabilities
Assets 
Liabilities
Financial instruments 
and financial 
liabilities
- 
 
(1 510) 
- 
(1 906) 
Loans and borrowings 
102 
- 
591 
- 
Derivatives
- 
(4 980) 
16 297 
- 
Cash flow hedges 
- 
(9 407) 
- 
(7 692) 
Tax losses 
- 
- 
- 
- 
Total
102 
(15 897) 
16 888 
(9 598) 
Total (net) 
 
(15 795) 
7 290 
In 2022, the Company utilised all the tax losses from prior years in the 
tax return. 
The 
Company 
recorded 
an 
unrecognised 
deferred 
tax 
asset 
arising 
from 
tax 
losses 
of EUR 3,772 
thousand 
as of 31 December 2022. 
Movements in deferred 
tax during the year: 
In thousands of 
EUR
Balance related to:
Balance at 
1 January 2022
Recognised 
in 
profit or loss
Recognised in 
other 
comprehensive 
income 
Balance at 
31 December 2022
Financial instruments 
and financial 
liabilities 
(1 906) 
396 
-
(1 510) 
Loans and 
borrowings 
591 
(489) 
-
102 
Derivatives 
16 297 
-
(21 277) 
(4 980) 
Cash flow hedges 
(7 692) 
(2 327) 
612 
(9 407) 
Tax losses 
-
- 
-
-
Total 
7 290 
(2 420) 
(20 665) 
(15 795)
Movements in deferred 
tax during the prior 
period: 
In thousands of 
EUR
Deferred tax assets 
(liabilities) 
related to:
Balance at 
1 January 
2021
Recognised 
in 
profit or loss
Recognised in 
other 
comprehensive 
income 
Foreign currency 
translation 
differences 
Balance at 
31 December 
2021

 
 
 
 
 
 
 
 
 
30 
Financial instruments 
and financial 
liabilities 
(2 369) 
577 
- 
 
(114) 
(1 906) 
Loans and 
borrowings 
1 067 
(520) 
- 
44 
591 
Derivatives 
18 887 
- 
(3 531) 
941 
16 297 
Cash flow hedges 
(3 274) 
- 
(4 105) 
(313) 
(7 692) 
Tax losses 
- 
- 
- 
- 
-
Total
14 311 
57 
(7 636) 
558 
7 290 
20. 
Off-balance sheet assets and liabilities
The Company recognised 
receivables in the 
amount of EUR 730,943 thousand 
in its off-balance sheet 
accounts (31 December 
2021: EUR 1,270,804 thousand) and 
payables in the amount 
of EUR 730,943 
thousand 
(31 
December 
2021: 
EUR 1,270,804 thousand), 
which 
represented 
the 
nominal 
value 
of 
the 
concluded derivatives. 
The Company recognised 
a receivable arising 
from guarantees 
granted to companies 
within the Group 
in the 
total amount 
of EUR 
57,811 thousand 
in its 
off-balance 
sheet accounts 
(31 December 
2021: EUR 
0 thousand) and a liability from 
the guarantees granted within the Group in the 
total amount of EUR 
50,000 thousand 
(31 December 2021: 
EUR 0 thousand). 
The Company also recognised an undrawn revolving facility in the 
amount of EUR 50,000 thousand 
(31 December 2021: EUR 
400,000 thousand). 
21. 
Operating expenses 
and income 
Sales and operating 
income
Sales and operating 
income of the Company 
comprise provided 
support and consulting 
services. 
Other operating expenses
In thousands of 
EUR
2022 
2021 
Audit, accounting, 
consolidation 
2 963 
2 314 
Tax advisory 
30 
17 
Legal advisory 
1 215 
1 926 
Other advisory 
526 
960 
Rent expenses 
216 
131 
Travel expenses 
278 
157 
Other 
1 379 
1 019 
Provisions/release of provisions 
 
(1 595) 
1 505 
Total for continuing 
operations
 
5 012 
8 029 
Information on remuneration 
to statutory auditors will be provided 
in the notes to the 
consolidated 
financial statements 
of the Company. 
No 
significant 
research 
and 
development 
expenses 
were 
recognised 
in 
the 
statement 
of comprehensive 
income for the years 
ended 
31 December 2022 
and 31 December 2021. 
22. 
Risk management 
policies and disclosures
This 
section provides 
details 
of 
the 
Company’s 
exposure to 
financial and 
operational risks 
and 
the way it 
manages such 
risk. The most 
important types 
of financial 
risks to which 
the Company 
is 
exposed are 
credit 
risk, liquidity 
risk and market risk. 
As 
part 
of 
its 
operations, 
the 
Company 
is 
exposed 
to 
different 
market 
risks, 
notably 
the 
risk 
of changes in 
interest 
rates and 
exchange 
rates. To minimise 
this exposure, 
the Company 
enters 
into 
derivatives contracts 
to 
mitigate 
or 
manage 
the 
risks 
associated 
with 
individual 
transactions 

 
 
 
 
 
 
 
 
 
 
 
 
 
31 
and 
overall 
exposures, 
using 
instruments available 
on the market. 
(a) 
Credit risk
Credit risk is 
the risk of 
financial loss to 
the Company if 
a counterparty to a 
financial instrument 
fails 
to 
meet 
its 
contractual 
obligations, 
and 
arises 
principally 
from 
loans 
and 
advances. 
The Company is exposed 
to credit 
risk mainly in 
connection with loans provided 
to subsidiaries; 
other 
significant 
receivables 
predominantly 
include 
other 
receivables 
and 
trade 
receivables. 
The Company regularly 
monitors the 
ability of debtors 
to pay their 
receivables through 
the analysis 
of the financial 
reporting of these 
entities. 
Additional aspects 
mitigating credit 
risk
The 
Company establishes 
an 
allowance for 
impairment 
that 
represents its 
estimate 
of 
incurred 
losses 
in 
respect 
of 
trade 
and 
other 
receivables. The 
main 
components 
of 
this 
allowance 
include 
a 
specific 
loss 
component that 
relates to individually 
significant exposures. 
At 
the 
reporting 
date, 
the 
maximum 
exposure 
to 
credit 
risk 
by 
type 
of 
counterparty 
and 
by 
geographic 
region is provided 
in the following 
tables. 
Credit risk by type of 
counterparty 
As at 31 December 2022
In thousands of EUR 
Corporate 
(non- financial 
institutions) 
State, 
government 
Banks 
Total 
Assets 
Cash and cash equivalents 
-
- 
269 893 
269 893 
Other receivables 
2 833 
- 
-
2 833 
Loans at amortised cost 
2 029 623 
- 
-
2 029 623 
Financial instruments 
and financial assets 
- 
- 
47 521 
47 521 
Total 
2 032 456 
-
317 414 
2 349 870 
As at 31 December 2021
In thousands of EUR 
Corporate 
(non- financial 
institutions) 
State, 
government 
Banks 
Total 
Assets 
Cash and cash equivalents 
- 
- 
29 044 
29 044 
Other receivables 
3 257 
21 
- 
3 278 
Loans at amortised cost 
1 736 421 
- 
- 
1 736 421 
Financial instruments 
and financial assets 
- 
- 
393 
393 
Total 
1 739 678 
21 
29 437 
1 769 136 
Credit risk by location 
of debtor 
As at 31 December 2022 
In thousands of EUR 
Czech Republic 
Netherlands 
Other 
Total 
Assets
Cash and cash equivalents 
269 883 
- 
10 
269 893 
Other receivables 
2 675 
- 
158 
2 833 
Loans at amortised cost 
466 546 
1 563 077
- 
2 029 623 
Financial instruments and financial assets 
47 521 
- 
47 521 
Total 
786 625 
1 563 077 
168 
2 349 870 
As at 31 December 2021 
In thousands of EUR 
Czech Republic 
Netherlands 
Other 
Total 
Assets
Cash and cash equivalents 
29 044 
- 
- 
29 044 
Other receivables 
3 133 
- 
145 
3 278 
Loans at amortised cost 
187 227 
1 549 194 
- 
1 736 421 
Financial instruments and financial assets 
393 
- 
393 
Total 
219 797 
1 549 194 
145 
1 769 136 
i. 
Impairment losses

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
32 
All financial assets 
of the Company were classified 
at Stage 1. 
The 
ageing of 
financial assets, 
excluding cash 
and cash 
equivalents and 
derivatives at 
the 
reporting 
date 
was as follows: 
The 
Company 
establishes 
an 
allowance 
for 
all 
expected 
future 
losses 
arising 
from 
the 
asset 
over 
the course of the 
asset’s useful 
life. Allowances are established predominantly on 
an individual basis 
for loans provided. 
All financial assets 
of the Company were classified 
at Stage 1. 
Credit risk – impairment 
of financial assets 
As at 31 December 
2022
In thousands of EUR 
Other 
receivables 
Loans to 
other than 
credit 
institutions 
Financial 
instruments 
and financial 
assets 
Total 
Before maturity (net) 
2 833 
2 029 623 
47 521 
2 079 977 
After maturity (net) 
- 
- 
- 
- 
Total 
2 833 
2 029 623 
47 521 
2 079 977 
A 
– Assets for which an allowance has been created
 
- gross 
-
2 054 731 
- 
2 054 731 
 
- specific loss allowance 
- 
(25 108) 
- 
(25 108) 
 
- general loss allowance 
-
-
- 
- 
Net 
2 833 
2 029 623 
47 521 
2 079 977 
Total 
2 833 
2 029 623 
47 521 
2 079 977 
The 
movements 
in 
the 
allowance 
for 
impairment 
in 
respect 
of 
financial 
assets 
during 
the 
year 
ended 
31 December 2022 were as follows:
In thousands of EUR 
Loans to other 
than credit 
institutions 
Total 
Balance at 1 January 2022 
22 067 
22 067 
Impairment losses recognised 
during the year
3 041 
3 041 
Reversals (release) 
of impairment losses 
recognised during 
the year
-
-
Balance at 31 December 2022 
25 108 
25 108 
Credit risk – impairment 
of financial assets 
As at 31 December 
2021
In thousands of CZK 
Other 
receivables 
Loans to 
other than 
credit 
institutions 
Financial 
instruments 
and financial 
assets 
Total 
Before maturity (net) 
3 278 
1 736 421 
393 
1 740 092 
After maturity (net) 
- 
- 
- 
- 
Total 
3 278 
1 736 421 
393 
1 740 092 
A 
– Assets for which an allowance has been created
 
- gross 
- 
1 758 488 
- 
1 758 488 
 
- specific loss allowance 
- 
(22 067) 
-
(22 067) 
 
- general loss allowance 
- 
- 
-
-
Net 
3 278 
1 736 421 
393 
1 740 092 
Total 
3 278 
1 736 421 
393 
1 740 092 

 
 
 
 
 
 
 
33 
The 
movements 
in 
the 
allowance 
for 
impairment 
in 
respect 
of 
financial 
assets 
during 
the 
year 
ended 
31 December 2021 
were as follows: 
In thousands of CZK 
Loans to other 
than credit 
institutions 
Total 
Balance at 1 January 2021 
19 098
19 098 
Impairment losses recognised 
during the year
5 164 
5 164 
Reversals (release) 
of impairment losses 
recognised during 
the year
(3 236) 
(3 236) 
Foreign currency translation differences 
1 041 
1 041 
Balance at 31 December 2021 
22 067 
22 067 
(b) 
Liquidity risk
Liquidity 
risk 
is 
the 
risk 
that 
the 
Company 
will 
encounter 
difficulties 
in 
meeting 
the 
obligations 
associated 
with its financial 
liabilities that 
are settled by delivering 
cash or another financial 
asset. 
The 
Company’s 
management focuses 
on 
methods 
used 
by 
financial 
institutions, i.e. 
diversification 
of 
sources 
of 
funds. 
This 
diversification 
makes 
the 
Company 
flexible 
and 
limits 
its 
dependency 
on 
one 
financing 
source. 
Liquidity 
risk 
is 
evaluated 
by 
monitoring 
changes 
in 
the 
structure 
of 
financing 
and 
comparing these changes 
with the Company’s liquidity 
risk management strategy. 
Typically, 
the Company ensures that it has sufficient cash on demand and assets within short 
maturity 
to 
meet 
expected 
operational 
expenses 
for 
a 
period 
of 
90 
days, 
including 
servicing 
financial 
obligations; 
this 
excludes the 
potential impact 
of extreme 
circumstances that 
cannot reasonably 
be 
predicted, such 
as natural 
disasters. 
The 
overview 
below 
provides 
an 
analysis 
of 
the 
Company’s 
financial 
liabilities 
by 
relevant 
maturity 
groupings based on the remaining period from the 
reporting date to the contractual maturity 
date. 
It 
is 
presented 
under 
the 
most 
prudent 
consideration 
of 
maturity 
dates 
where 
options 
or 
repayment 
schedules 
allow 
for 
early 
repayment 
possibilities. 
Therefore, 
in 
the 
case 
of 
liabilities, 
the earliest required 
repayment 
date is disclosed. 
As 
of 
the 
date 
of 
preparation 
of 
the 
financial 
statements, 
the 
Company 
records 
undrawn 
credit 
facilities described in Note 17, which guarantee sufficient additional liquidity of the Company. At 
the same time, current assets significantly exceed current 
liabilities. 
Maturities of financial 
liabilities
As at 31 December 
2022
In thousands of 
EUR
Carrying
amount
Contractual
cash 
flows
(1)
Up to 3
months
3 months
to 1 year
1–5 years
Over 5
years
Liabilities
Loans and 
borrowings 
 
2 870 558
2 870 558
111 914 
16 593 
1 746 751 
995 300 
Financial 
instruments and financial 
liabilities 
 
721
721
344 
341 
36 
- 
Other liabilities 
12 382
12 382
3 815 
8 567 
- 
- 
Total 
2 883 661 
2 883 661 
116 073 
25 501 
1 746 787 
995 300 
(1) 
Contractual cash flows disregard discounting to net present value and 
include potential future interest. 
 

 
 
 
 
 
 
 
 
 
 
 
 
34 
As at 31 December 
2021
In thousands of 
EUR
Carrying
amount
Contractual
cash flows
(1)
Up to 3
months
3 months
to 1 year
1–5 years
Over 5
years
Liabilities
Loans and 
borrowings 
 
2 362 655
2 362 655
7 587 
15 100 
1 345 292 
994 676 
Financial 
instruments and financial 
liabilities 
90 063
101 708
139 
15 728 
70 848 
14 993 
Other liabilities 
4 671 
4 671
4 671 
- 
- 
- 
Total 
2 457 389 
2 469 034
12 397
30 828
1 416 140 
1 009 669
 
(2) 
Contractual cash flows disregard discounting to net present value and 
include potential future interest. 
It is not expected 
that the cash 
flows included 
in the maturity 
analysis would 
occur significantly 
earlier 
or 
in significantly 
different amounts. 
(c) 
Interest rate risk
The 
Company’s 
operations 
are 
subject 
to 
the 
risk 
of 
interest 
rate 
fluctuations 
to 
the 
extent 
that 
interest- 
earning 
assets 
and 
interest-bearing liabilities 
mature 
or 
re-price 
at 
different 
times 
or 
in 
differing amounts. 
The length of time for which the rate 
of interest is fixed on a financial instrument 
therefore 
indicates 
to 
what 
extent 
it 
is 
exposed 
to 
interest 
rate 
risk. 
The 
table 
below 
provides 
information 
on 
the 
extent 
of 
the 
Company’s interest rate 
exposure based either 
on the contractual 
maturity date of its financial 
instruments 
or, in 
the case of instruments that re-price to a 
market rate 
of 
interest 
before 
maturity, 
the 
next 
re-pricing 
date. Those 
assets and 
liabilities that 
do 
not 
have 
a contractual 
maturity 
date 
or 
are 
not 
interest-bearing 
are 
grouped 
together 
in 
the “maturity 
undefined” category. 
Various types of derivatives 
are used 
to reduce 
the amount 
of debt 
exposed to 
interest rate 
fluctuations 
and 
to reduce borrowing 
costs and include 
mainly interest 
rate swaps. 
These 
contracts 
are 
normally 
agreed 
with 
a 
notional 
amount 
lower 
than 
or 
equal 
to 
that 
of the underlying 
financial liability, so that any change in the fair value and/or expected future cash 
flows of 
these contracts 
is 
offset by 
a corresponding 
change in 
the fair 
value and/or 
the 
expected 
future cash flows 
from the underlying 
position. 
Financial 
information relating 
to 
interest 
bearing 
and 
non-interest bearing 
assets 
and 
liabilities and 
their 
contractual maturity 
or re-pricing dates 
as at 31 December 2022 
is as follows: 
In thousands of EUR 
Up to 1 year 
1-5 years 
Over 5 years 
Undefined 
maturity
Total 
Assets
Cash and cash equivalents
269 893 
-
-
-
269 893 
Other receivables 
-
-
-
2 833 
2 833 
Loans at amortised cost 
2 029 623 
-
-
-
2 029 623 
Financial instruments and financial receivables 
685 
36 
46 800 
-
47 521 
out of which Derivatives - inflow (receivables)
730 943
-
-
-
730 943
- outflow (payables) 
-
(16 824)
(714 119)
-
(730 943)
Total 
 
2 300 201 
 
36 
46 800 
2 833 
2 349 870 
Liabilities
Loans and 
borrowings
(1)
128 507 
1 746 751 
995 300 
-
2 870 558 
Financial instruments and financial liabilities 
36 
685 
- 
- 
721 
Other liabilities
- 
- 
-
12 382 
12 382 
Total 
128 543 
1 747 436 
995 300 
12 382 
2 883 661 
Net interest rate risk 
position 
2 171 658 
(1 747 400) 
(948 500) 
(9 549) 
(533 791) 
Net interest rate risk 
position (incl.
IRS) 
2 902 601 
(1 764 224) 
(1 662 619) 
(9 549) 
 
(533 791) 
(1) 
Disregarding agreed interest rate swaps

 
 
 
 
 
 
 
 
 
35 
Financial information relating to 
interest bearing and 
non-interest bearing assets and 
liabilities and 
their 
contractual maturity 
or re-pricing dates 
as at 31 December 2021 
is as follows: 
In thousands of EUR 
Up to 1 year 
1-5 years 
Over 5 years 
Undefined 
maturity
Total 
Assets
Cash and cash equivalents
29 044 
- 
-
- 
29 044 
Other receivables 
- 
- 
-
3 278 
3 278 
Loans at amortised cost 
903 148 
833 273 
-
- 
1 736 421 
Financial instruments and financial receivables 
280 
113 
-
- 
393 
Total 
932 472 
833 386 
- 
3 278 
1 769 136 
Liabilities
Loans and 
borrowings
(1)
- 
1 345 292 
994 676 
22 687 
2 362 655 
Financial instruments and financial liabilities 
90 063 
-
-
- 
90 063 
out of which Derivatives - inflow (receivables)
1 270 804 
- 
- 
- 
1 270 804 
- outflow (payables)
- 
(160 804) 
(1 110 000) 
- 
(1 270 804) 
Other liabilities
- 
- 
- 
4 671 
4 671 
Total 
 
90 063 
1 345 292 
994 676 
27 358 
2 457 389 
Net interest rate risk 
position 
842 409
(511 906)
(994 676)
(24 080)
688 253
Net interest rate risk 
position (incl.
IRS) 
2 113 213
(672 710)
(2 104 676)
(24 080)
688 253
(1) 
Disregarding agreed interest rate swaps
Sensitivity analysis
The 
Company 
performs 
stress 
testing 
using 
a 
standardised interest 
rate 
shock, 
i.e. 
an 
immediate 
decrease/increase in interest rates 
by 1% 
along the 
whole yield curve 
is applied 
to the 
interest rate 
positions 
of the portfolio. 
At the reporting date, a change of 1% in 
interest rates would have 
increased or decreased Company’s 
profit 
by the 
amounts shown 
in the 
table below. 
This analysis assumes 
that all 
other variables, in 
particular 
foreign 
currency rates, 
remain constant. 
In thousands of 
CZK
31/12/2022
31/12/2021
Profit (loss)
Profit (loss)
Decrease in interest rates 
by 1% 
(1 525) 
620 
Increase in interest rates 
by 1% 
1 525 
(620) 
(d) 
Foreign exchange 
risk
The 
Company takes 
on 
exposure 
to 
the 
effects 
of 
fluctuations in 
the 
prevailing foreign 
currency 
exchange 
rates on its financial 
position 
and cash flows. 
The Company is 
exposed to a 
currency risk 
on sales, purchases 
and borrowings 
that are 
denominated 
in a currency 
other that the Company’s functional 
currency, primarily CZK. 
Various 
types 
of 
derivatives are 
used to 
reduce the 
exchange rate 
risk on 
foreign currency 
assets, 
liabilities 
and 
expected 
future 
cash 
flows. 
These 
include 
currency swaps, 
most 
with 
a maturity 
of less 
than one year. 
These 
contracts 
are 
also 
normally 
agreed 
with 
a 
nominal 
amount 
and 
expiry 
date 
equal 
to 
that 
of 
the 
underlying financial liability or the expected future cash 
flows, so that any change in the fair 
value and/or 
future 
cash 
flows 
of 
these 
contracts 
stemming 
from 
a 
potential 
appreciation 
or 
depreciation of 
the functional currency 
against 
the 
foreign 
currencies 
is 
fully 
offset 
by 
a 
corresponding 
change in 
the fair 
value 
and/or the expected 
future cash flows 
of the underlying 
position. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36 
As 
of 
31 
December 
2022, 
the 
Company’s 
financial 
assets 
and 
liabilities 
based 
on 
denomination 
were 
as follows: 
In thousands of 
EUR 
CZK 
EUR 
Other 
Total 
Assets 
Cash and cash equivalents 
8 431 
261 462 
- 
269 893 
Other receivables 
869 
1 964 
- 
2 833 
Financial assets and 
financial receivables 
721 
46 800 
- 
47 521 
Loans at amortised cost 
-
2 029 623 
- 
2 029 623 
10 021 
2 339 849 
- 
2 349 870 
Off-balance sheet 
assets 
Receivables from 
derivative operations 
67 754
721 000
- 
788 754
67 754
721 000 
- 
788 754 
Liabilities 
Loans and borrowings 
- 
2 870 558 
- 
2 870 558 
Financial instruments and financial liabilities 
721 
- 
- 
721 
Other liabilities 
12 165 
215 
2 
12 382 
12 886 
2 870 773 
2 
 
2 883 661 
Off-balance 
sheet liabilities 
Payables related 
to derivative operations 
10 943 
820 000 
- 
830 943
10 943 
820 000 
830 943 
Net FX risk 
position 
53 946 
(629 924)
 
(2) 
(575 980) 
Effect of currency 
hedging 
- 
-
- 
- 
Net FX risk position 
after hedging 
53 946 
(629 924) 
(2) 
(575 980) 
Off-balance sheet assets 
are described in 
more detail in 
Note 20 –Off balance-sheet 
assets and 
liabilities. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
37 
 
As 
of 
31 
December 
2021, 
the 
Company’s 
financial 
assets 
and 
liabilities 
based 
on 
denomination 
were 
as follows: 
In thousands of 
EUR 
CZK 
EUR 
Other 
Total 
Assets 
Cash and cash equivalents 
2 122 
26 922 
-
29 044 
Other receivables 
3 133 
145 
-
3 278 
Financial assets and 
financial receivables 
393 
- 
- 
393 
Loans at amortised cost 
111 587 
1 624 834 
-
1 736 421 
117 235 
1 651 901 
-
1 769 136 
Off-balance sheet 
assets 
Receivables from 
derivative operations 
10 804 
1 260 000 
-
1 270 804 
10 804 
1 260 000
-
1 270 804 
Liabilities 
Loans and borrowings 
-
2 362 655 
- 
2 362 655 
Financial instruments and financial liabilities 
-
90 063 
- 
90 063 
Other liabilities 
2 312 
2 358 
1 
4 671 
2 312 
2 455 076 
1 
2 457 389 
Off-balance 
sheet liabilities 
Payables related 
to derivative operations
10 804 
1 260 000 
- 
1 270 804
10 804 
1 260 000 
 
1 270 804 
Net FX risk 
position 
114 923 
(803 175) 
(1) 
(688 253) 
Effect of currency 
hedging* 
-
440 000 
- 
440 000
Net FX risk position 
after hedging 
114 923 
(363 175) 
(1) 
 
(248 253) 
*The functional currency 
in 2021 was the CZK. 
Off-balance 
sheet assets 
are described 
in more 
detail in 
Note 20 
–Off balance-sheet 
assets and 
liabilities. 
The following significant 
exchange rates applied 
during the reporting 
period: 
2022 
2021 
CZK
Average rate 
Reporting date
 
rate
Average rate 
Reporting date
 
rate
EUR 
 
 
24.565
24.115 
25.645
24.86 
Sensitivity analysis
A strengthening (weakening) 
of the EUR, 
as indicated 
below, 
against the 
CZK 
at 
the reporting 
date 
would have an impact on profit or loss 
and other comprehensive 
income for the accounting 
period due 
to a 
positive (negative) revaluation 
of net 
assets by 
the amounts 
shown in 
the following 
table. This 
analysis 
is 
based 
on 
foreign currency 
exchange rate 
variances that 
the 
Company considered 
to 
be 
reasonably likely at 
the end 
of the 
reporting period. The 
analysis assumes that all 
other variables, in 
particular interest rates, 
remain constant. 
Effect in thousands 
of EUR
31/12/2022
31/12/2021 
Profit (loss)
Profit (loss)
5% strengthening 
of EUR to CZK 
2 697 
5 746 
Effect in thousands 
of EUR
31/12/2022
31/12/2021 
Other comprehensive 
income
Other comprehensive 
income
5% strengthening 
of EUR to CZK 
2 697 
5 746 
A weakening of the EUR against the above currency 
at the reporting date would have had equal 
but 
opposite effect, on 
the basis that all 
other variables 
remain constant. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
38 
(e) 
Operational 
risk
Operational 
risk 
is 
the 
risk 
of 
loss 
arising 
from 
fraud, 
unauthorised 
activities, 
error, 
omission, 
inefficiency 
or system 
failure. It 
arises from 
all activities 
and is 
faced by 
all business 
organisations. 
Operational risk 
includes legal risk. 
The primary responsibility 
for the implementation 
of controls to address 
operational risk is assigned 
to 
the Company’s management. General 
standards applied 
cover the following 
areas: 
1.
requirements for 
the reconciliation 
and monitoring of 
transactions 
2.
identification of 
operational risk 
within the control 
system, 
3.
this overview 
of the 
operational risk events 
allows the 
Company to 
specify the direction 
of the 
steps and process 
to take in order 
to limit these 
risks, as well as 
to make decisions 
regarding: 
1.
accepting the individual 
risks that are faced; 
2.
initiating processes 
leading to limitation 
of possible impacts; 
or 
3.
decreasing the scope 
of the relevant activity 
or discontinuing 
it entirely. 
(f) 
Capital management
The 
Company’s 
policy 
is 
to 
maintain 
a 
strong 
capital 
base 
to 
maintain 
investor, 
creditor 
and 
market confidence 
and to sustain future 
development of 
its business. 
The 
Company 
manages 
its 
capital 
to 
ensure 
that 
it 
will 
be 
able 
to 
continue 
as 
a 
going 
concern 
while 
maximising the return 
to shareholders 
through the optimisation 
of the debt and equity 
balance. 
The Company is not subject 
to externally imposed 
capital requirements. 
The 
Company 
also 
monitors 
its 
debt 
to 
adjusted 
capital 
ratio. 
At 
the 
end 
of 
the 
reporting 
period, 
the ratio 
was as follows: 
In millions of 
EUR
31 December 
2022
31 December 
2021
Total liabilities bearing 
interest 
2 871 
2 363 
Less: cash and cash 
equivalents 
270 
 
29 
Net debt
2 601
2 392
Total equity attributable to 
the equity 
holders 
4 952 
4 801 
Less: amounts 
accumulated in 
equity relating 
to cash flow hedges 
52 
 
(36)
Adjusted capital 
4 900
4 837
Debt to adjusted 
capital
0.53
0.48
(g) 
Hedge accounting
Cash flow hedges – 
hedge of foreign currency risk with 
non-derivative financial 
liability
Due to the 
change in the 
functional currency 
on 1 January 
2022, the 
dividend cash 
flow hedge has 
been 
terminated as 
the Company 
will no 
longer be 
exposed to 
risk related 
to changes 
in FX 
rates. At 
the 
date of 
termination, the 
balance in 
equity was 
translated at 
(CZK to 
EUR) 24.86 
and a 
release table 
was 
set 
in 
EUR, 
the 
balance 
will 
be 
released 
against 
future 
dividends 
(the 
original 
hedged 
item) 
between 2022 and 2034. 

 
 
 
 
 
 
39 
Cash flow hedges – 
hedge of interest rate 
risk
The Company 
applied 
hedge 
accounting 
for hedging 
instruments designed 
to hedge the 
interest rate 
risk 
of 
its debt financing before 2 March 
2021. The hedging instruments included interest rate swaps used 
to hedge the risk related to the repricing of interest 
rates on debt financing. 
Due to refinancing 
of loans 
with a variable 
interest rate 
by a debenture 
with a 
fixed rate, 
the hedge 
accounting was 
discontinued. 
As 
at 
2 
March 
2021, 
a 
hedge 
effectiveness 
test 
was 
performed, 
and 
the 
relationship 
was 
assessed 
as 
ineffective. As 
a result 
of the 
discontinued hedge relationship, 
the Company 
recognised a 
cash flow 
hedge reserve from interest in equity in the amount of 2,608,843 thousand (equivalent 
of EUR 99,803 
thousand). 
The revaluation 
of interest swaps used 
as hedging between 
31 December 2020 and 
2 March 
2021 was derecognised in the profit or loss 
and concurrently the release was set for 2021 
– 2026. This 
hedging will be gradually derecognised together with the future interest (hedged item) in the profit or 
loss. 
The 
reserve 
as 
of 
31 
December 
2022 
amounts 
to 
EUR 
66,577 
thousand 
(2021: 
EUR 
84,281 
thousand). 
From 26 April 2022, the Company applies hedge accounting for hedging instruments designed to hedge 
interest rate 
risk of 
debt financing. 
Hedging instruments 
are interest 
rate swaps 
used to 
hedge the 
risk 
associated with changes 
in interest rates 
on debt financing. 
In total, the 
Company has entered 
into IRS 
swaps with 
a nominal 
amount of 
EUR 710,000 
thousand maturing 
between 2028 
and 2029 
with fixed 
rates 
ranging 
from 
1.551% 
to 
1.671%. 
As 
a 
result 
of 
the 
hedging 
relationship, 
the 
Company 
has 
recognised 
an interest 
cash flow 
hedge 
reserve 
of EUR 
26,904 
thousand 
(2021: 
EUR (83,872) 
thousand). 
23. 
Related parties
Identity of related parties
The Company has 
a related party 
relationship with its shareholders and other 
parties, as identified in 
the 
following table. 
(a) 
The summary 
of outstanding 
balances 
with related 
parties 
as at 
31 December 
2022 
and 31 December 2021:
The 
Company 
had 
transactions with 
related 
parties, 
its 
parent 
company, 
and 
other 
related 
parties, 
as 
follows: 
In thousands of EUR 
Accounts 
receivable and 
other financial 
assets 
Accounts 
payable and 
other financial 
liabilities 
Accounts 
receivable and 
other financial 
assets 
Accounts 
payable and 
other financial 
liabilities 
31/12/2022 
31/12/2022 
31/12/2021 
31/12/2021 
Subsidiaries 
1 799 053 
202 
1 758 590 
- 
Other
* 
266 056 
106 672 
722 
2 398 
Total 
2 065 109 
106 874 
1 759 312 
2 398 
* Entities under Energetický a průmyslový holding a.s. 
Daniel Křetínský is the ultimate shareholder.
(b) 
The summary of transactions 
with related parties during the 
year ended 
31 December 2022 
and 31 December 2021 was as follows: 
In thousands of EUR 
Revenues
Expenses
Revenues
Expenses
2022 
2022 
2021 
2021 
Subsidiaries 
56 350 
202 
331 126 
1 118 
Other
* 
4 305 
5 186 
587 
2 925 
Total 
60 655 
5 388 
331 713 
4 043 
* Entities under Energetický a průmyslový holding a.s. 
Daniel Křetínský is the ultimate shareholder.
All transactions were 
performed under the arm’s length 
principle. 

40 
Transactions with the key management 
personnel
The 
members of 
the 
Board of 
Directors and 
the 
Supervisory Board 
of 
the 
Company did 
not receive 
any other 
significant monetary or non-monetary performance 
for 2022 
and 2021. 
At the 
same time, 
members nominated by 
EPIF Investment 
a.s. 
(shareholder of EPIF) 
were also 
employed 
by 
other 
companies of the 
EPH Group. 
Social security and health 
insurance liabilities 
were not overdue. 
24. 
Subsequent 
events
In February and March 2023, the 
Company partially repaid the bank loan with accrued 
interest, with a 
total principal repayment of EUR 200 million. 
Between the balance 
sheet date and 
the financial statements 
preparation date, there 
were no other 
events 
with 
a 
material 
impact 
on the assessment 
of 
the 
asset 
and 
financial 
situation 
and 
results 
of 
business 
activities as at 31 December 2022. 