epifannualreport

 
EP Infrastructure, a.s. 
 
Consolidated annual report for the year 
2020

CONTENT 
 
I.
 
Introduction
 
by
 
the
 
Cha
irman
 
of
 
the
 
Board
 
of
 
Directors
 
II.
 
Independent
 
Auditor´s
 
Report
 
to
 
the
 
Consolidated
 
Annual
 
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, 
 
In
 
2020,
 
EP
 
Infrastructure,
 
a.s.
 
(“EPIF“)
 
continued
 
to
 
operate
 
its
 
traditional
 
energy
 
infrastructure
 
assets
 
in
 
Central
 
Europe.
 
EPIF’s
 
activities
 
remain
 
concentrated
 
on
 
the
 
transmission, distribution and storage of natural gas, the distribution 
of electricity and the heat 
industry. 
Supported 
by 
steady 
economic 
growth 
in 
countries 
where 
it 
operates, 
EPIF 
again 
confirmed
 
its
 
role
 
of
 
the
 
major
 
infrastructure
 
player
 
in
 
the
 
Central
 
European
 
region
 
by
 
delivering reliable and quality service to its customers at attractive prices. 
The 
EPIF 
Group 
subsidiaries 
operate 
a 
transit 
gas 
pipeline, 
the 
most 
robust 
corridor 
for 
gas 
supplies to Western, 
Central and Southern 
Europe, and act as 
the major distributors of 
natural 
gas and electricity in Slovakia. The EPIF 
Group also operates the largest gas storage capacities 
in
 
Central
 
Europe
 
with
 
additional
 
storage
 
facilities
 
in
 
Germany
 
and
 
is
 
significant
 
heat
 
distribution network operator and heat producer in the Czech Republic. 
We 
are proud 
to confirm 
that we 
continue to 
see 
a strong 
resilience of 
our 
businesses in 
the 
context of the current pandemic, which had a fairly limited impact on our performance. 
Following to 
delivering exceptional 
results in 
2019 driven 
by front-loading 
of volumes 
from 
2020,
 
the
 
Gas
 
transmission
 
segment
 
reported
 
strong
 
performance
 
also
 
in
 
2020.
 
W
hile
 
maintaining its 
full technical 
capacity and 
availability of 
services for its 
customers, Eustream 
transported 57 billion cubic 
metres of natural 
gas in 2020. 
Operational results were 
positively 
affected by the higher reverse gas flows primarily between July and September 2020 
driven by 
attractive 
price 
of 
available 
storage 
capacities 
in 
Ukraine. 
In 
2020, 
Eustream 
continued 
to 
benefit from its 
pivotal role as one 
of the largest and the 
most important piped gas 
transit routes 
into Europe. Within development projects focusing on the enhancement of energy security and 
the
 
creation
 
of
 
new
 
business
 
opportunities
 
we
 
substantially
 
increased
 
gas
 
transmission
 
capacities from 
the Czech 
Republic to 
Slovakia after 
the CS05 
compressor station 
was launched 
in 
January 
2020. 
Further, 
we 
are 
working 
on 
the 
expansion 
of 
our 
network 
and 
on 
the 
construction 
of 
an 
interconnection 
to 
Poland. 
The construction 
of this 
interconnection 
is 
a 
strategic project that has received financial support 
from EU funds under the CEF Programme 
and is scheduled to commence its operation in early 2022. 
Stability and 
extraordinary resilience 
of Gas 
and power 
distribution segment 
was proven 
also 
over 2020, when operational results were in line with our expectation despite the pandemic. In 
2020, SPP 
Distribúcia, the 
Slovak regulated 
natural monopoly, 
distributed almost 
54 TWh 
of 
natural gas, which was 
3.5% more year on year. At the same 
time, we continued to increase 
the 
efficiency 
of 
operating 
activities 
and 
overhaul 
distribution 
networks 
to 
further 
reduce 
the 
number of leaks in the distribution network and ensure a high level of security when operating 
our
 
facilities.
 
Stredoslovenska
 
Di
stribucna,
 
the
 
electricity
 
distributor
 
in
 
central
 
Slovakia,
 
distributed almost 5.9 TWh of 
electricity in 2020, which is 
4.8% below the last year’s 
volume 
reflecting lower overall economic activity of major industrial customers as consequence of the 
pandemic. Nevertheless, 
financial performance 
was stable 
as the 
volume risk 
connected with 
gas and power distribution tariffs 
applies primarily to households. We 
also kept on renovating 

and reconstructing our backbone 
electricity network to ensure 
the continuity of our 
traditional 
distribution 
services 
while 
reflecting 
modern 
trends 
in 
electricity 
distribution. 
Total 
capital 
expenditures in this segment were close to EUR 90 million. 
Similarly to 2019, 
the Heat Infra 
segment was affected by 
mild winter at 
the beginning of 
2020. 
Despite lower 
heat offtakes coupled 
with pressure on 
electricity spreads 
due to abovementioned 
economic slowdown, the performance of the Heat infrastructure 
segment remained robust with 
9% contribution 
to total 
EPIF Group 
Adjusted EBITDA. In 
2020, the 
Group supplied more 
than 
19 PJ of 
heat to residential, 
institutional and commercial 
customers and produced 
more than 3.3 
TWh of net electricity, confirming its position of a 
major heat supplier and power 
producer. As 
an
 
important
 
provider
 
of
 
ancillary
 
services,
 
EPIF
 
Group
 
significantly
 
contributed
 
to
 
the
 
transmissions 
network’s 
stability 
in 
the 
Czech Republic 
and 
Hungary. 
Heat 
Infra 
companies 
continued 
with 
major 
investment 
projects 
leading 
to 
higher 
production 
efficiency, 
reduced 
environmental impact 
of its operations 
and enhanced reliability 
of supplies. The 
key investment 
projects included a replacement of the major cogeneration steam turbine in the heating plant in 
Opatovice and 
Labem and 
a reconstruction 
of the 
main heat 
feeding line 
to Litvínov. Our 
energy 
mix 
in 
the 
following 
years 
will 
be 
shaped 
by 
our 
current 
investments 
in 
refurbishments 
of 
existing boilers to enable partial 
or full biomass combustion, 
specifically in our heating plants 
in 
Plzeň 
and 
Komořany 
where 
the 
projects 
already 
commenced. 
This 
will 
complement 
the 
already existing 
biomass unit 
and a 
waste incinerator 
plant operated 
by Plzeňská 
teplárenská. 
By 
gradual transition 
towards 
fuels 
with 
lower carbon 
footprint 
such 
as 
biomass, 
communal 
waste 
or 
natural 
gas, 
we 
aim 
to 
actively 
contribute 
to 
the 
ongoing 
energy 
transition 
and 
decarbonization in Europe. 
The 
group 
companies 
operating 
in 
the 
Gas 
storage 
segment 
significantly 
benefited 
from 
the 
rising storage price in the region. Price increase 
was mainly driven by the fact that gas 
storage 
facilities 
were 
unusually 
stocked 
after 
the 
warm 
winter 
in 
2019/2020. 
In 
general, 
we 
keep 
holding 
our 
position 
as 
the 
major 
player 
in 
the 
Central 
European 
region, 
making 
every 
endeavour to further 
strengthen our role. The 
overall storage capacity 
is more than 62 
TWh and 
includes 
assets 
in 
strategic 
regions 
connected 
to 
key 
gas 
routes. 
In addition 
to 
its 
traditional 
assets in Slovakia, 
EPIF operated 
storage facilities in 
South-Eastern Bavaria 
acquired at the 
end 
of 2018 with capacity of almost 20 TWh. These 
are currently contracted to a major extent until 
2027 on a 
store-or-pay basis. 
In 2020, we 
also continued 
to invest 
in the operational 
security, 
storage
 
technology
 
modernisation,
 
automation
 
enhancement
 
and
 
utilisation
 
of
 
collected
 
information to further optimise processes. 
Stable performance in 
2020 despite the 
pandemic proved the 
quality of assets 
being operated, 
most 
of which 
are regulated 
and contracted 
on a 
long-term basis. 
Majority of 
our revenue 
is 
dependent
 
on
 
already
 
pre
-
booked
 
capacities,
 
such
 
as
 
ship
-
or
-
pay
 
contrac
ts
 
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. 
Consolidated Adjusted 
EBITDA
1
 
for 2020 
was EUR 
1 526 
million, 
which is a 
5% decline as 
compared to last 
year, when 
we achieved exceptional 
results. At the 
same time, we recorded 
the similar decline in Adjusted 
Free Cash Flow
2
 
to EUR 1 046 million, 
which
 
confirms
 
that
 
t
hanks
 
to
 
the
 
high
-
quality
 
structure
 
of
 
assets
 
and
 
highly
 
efficient
 
operational management, 
EPIF shows 
the 
above-average 
rate of 
converting 
operating profits 
into 
free 
cash 
flows. 
Owing 
to 
this 
and 
other 
positive 
factors, 
in 
2020, 
the 
EPIF 
Group’s 
investment 
ratings 
previously 
awarded 
by 
renowned 
rating 
agencies 
Moody’s 
Deutschland 

GmbH, 
Fitch 
Ratings 
Ireland 
Limited 
and 
S&P 
Global 
Ratings 
Europe 
Limited 
were 
all 
affirmed. Further, on 22 February 2021, S&P Global Ratings Europe Limited already affirmed 
our rating at BBB with outlook stable. 
In the 
last quarter 
of 2020, 
the EPIF 
Group disposed 
two entities 
in the 
Heat Infra 
segment - 
Pražská teplárenská 
a.s., a 
major heat 
distributor in 
Prague, and 
Budapesti Erömü 
Zrt., a 
key 
producer of heat in Budapest. 
These entities together accounted for 
approximately 5% of total 
EPIF Group Adjusted EBITDA. As 
a result of the divestments, 
the overall carbon footprint of 
the EPIF Group declined substantially in line with our long-term goals, 
being accompanied by 
projects implemented at our existing heating plants as described earlier. 
Acknowledging the impact of its operations on communities and other stakeholders, EPIF also 
issued its 
second sustainability 
report during 
2020 enabling 
readers to 
get a 
better understanding 
of our approach to environmental, 
social and governance matters. For the 
first time, the report 
was fully aligned with 
UN’s Global 
Development Goals and 
the 2030 Agenda. In 
addition, in 
April 
2020 
EPIF 
obtained 
its 
debut 
ESG 
rating 
from 
S&P 
Global 
Ratings 
Europe 
Limited, 
where we scored 65 out of 100 points. 
To conclude, I would like to 
express my honest 
thanks to our employees, 
investors and partners 
who 
have 
been 
participating 
in 
the 
realisation 
of 
our 
strategy 
and 
cooperating 
with 
us, 
thus 
supporting 
us 
to 
fulfil 
our 
main 
business 
objective, 
which 
is 
to 
ensure 
a 
safe, 
reliable 
and 
profitable operation 
of the energy 
infrastructure for prices 
favourable to our 
customers. We owe 
our success to all of you. 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
 
Adjusted EBITDA represents operating profit plus depreciation of property, 
plant and equipment and amortisation of intangible assets 
less 
negative goodwill 
(if applicable), 
adjusted by 
(a) excluding 
non-cash non-recurring 
impairment charge 
relating to 
property, plant and 
equipment 
and 
intangible assets 
(2020: EUR 
2 million; 
2019: EUR 
-45 million), 
(b) excluding 
other non-cash 
one-off gains 
(2020: EUR 
4 million; 
2019: EUR 0 million) and (c) 
adding back 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 (2020: EUR 90 million; 
2019: EUR 50 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 
Heat 
Infra 
Gas 
Storage 
Total 
segments 
Other 
Holding 
entities 
Intersegment-
eliminations 
Consolidated 
financial 
information 
(in EUR millions) 
2020 
Profit from operations 
548 
371 
64 
187 
1,170 
1 
(9) 
- 
1,162 
Depreciation and 
amortisation 
130 
220 
76 
31 
457 
3 
- 
- 
460 
EBITDA 
678 
591 
140 
218 
1,627 
4 
(9) 
- 
1,622 
Non-cash non-
recurring impairments 
of assets 
- 
- 
- 
(4) 
(4) 
2 
- 
- 
(2) 
Other non-cash non-
recurring items 
- 
- 
(4) 
- 
(4) 
- 
- 
- 
(4) 
System Operation 
Tariff (surplus) / deficit
- 
(90) 
- 
- 
(90) 
- 
- 
- 
(90) 
Adjusted EBITDA ...... 
678 
501 
136 
214 
1,529 
6 
(9) 
- 
1,526 
2019 
Profit from operations 
606 
368 
93 
146 
1,213 
1 
(6) 
- 
1,208 
Depreciation and 
amortisation 
130 
159 
82 
29 
400 
3 
- 
- 
403 
EBITDA 
736 
527 
175 
175 
1,613 
4 
(6) 
- 
1,611 
Non-cash non-
recurring impairments 
of assets 
1 
39 
- 
5 
45 
- 
- 
- 
45 
System Operation 
Tariff (surplus) / deficit
- 
(50) 
- 
- 
(50) 
- 
- 
- 
(50) 
Adjusted EBITDA ...... 
737 
516 
175 
180 
1,608 
4 
(6) 
- 
1,606 
 
2
 
Adjusted Free 
Cash Flow 
represents Cash 
generated from 
operations, disregarding 
Change in 
restricted cash, 
less Income 
tax paid, 
Acquisition 
of property, plant and equipment 
and intangible assets and 
Purchase of emission 
rights as presented 
in the consolidated statement 
of cash flows 
of the Group, excluding the cash 
impact of the purchases of energy from 
renewable energy sources and the subsequent 
compensation pursuant 
to the Slovak RES Promotion Act (so called “SOT”) (2020: EUR 
129 million; 2019: EUR 10 million). 
 
 

II.
 
Independent
 
Auditor´s
 
Report
 
to
 
the
 
Consolidated
 
Annual
 
Report

$epif-2020-12-31p10i0$

III.
 
Other
 
Information

Expected development of the EP Infrastructure, a.s. Group ("EPIF Group" or “Group”) 
In 
2021, 
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. 
Due to the 
coronavirus (“COVID-19”) outbreak in 
2020, the Czech 
Republic and Slovakia, like 
other countries 
in Europe and worldwide, introduced quarantine and other restrictive measures intended to prevent the spread of 
COVID-19. These 
restrictive measures 
have led 
to serious 
interruptions in 
business, economic 
and day-to-day 
activities in the countries in 
which the EPIF Group operates, 
affecting, among other things, manufacturing, 
trade, 
consumer confidence, levels 
of unemployment, the 
housing market, the 
commercial real estate 
sector, debt 
and 
equity markets, counterparty risk, 
inflation, the availability and 
cost of credit, transaction 
volumes in wholesale 
and 
retail 
markets, 
the 
liquidity 
of 
the 
global 
financial 
markets 
and 
market 
interest 
rates. 
These 
factors 
have 
resulted in a widespread deterioration in the economies of these countries. 
From the very beginning of 
the COVID-19 outbreak, the 
EPIF Group has been 
continuously identifying potential 
risks and 
implemented appropriate measures 
to mitigate 
or reduce 
the impact 
on the 
business as 
well as 
on the 
EPIF 
Group’s 
stakeholders, 
having 
two 
central 
objectives 
in 
mind: 
guaranteeing 
the 
health 
and 
safety 
of 
employees, which remains the EPIF Group’s top priority, and safeguarding the continuity of the essential energy 
security service 
in the 
countries where 
the EPIF 
Group operates. 
In order 
to maintain 
operations to 
run critical 
infrastructure assets, precautionary measures have been implemented, special teams have been 
set up to manage 
the situation, and 
critical employees 
have been 
strictly divided into 
smaller teams. 
Such a setup 
is going to 
be kept 
as long as deemed necessary. 
In 2020, the EPIF Group’s operations have 
proven to be significantly 
resilient as the abovementioned 
COVID-19 
impacts have had 
a limited adverse 
effect on the 
EPIF Group’s 
financial performance. The 
operational stability 
was primarily 
driven by 
the fact 
that the 
EPIF Group’s 
revenues largely 
depend on 
already 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. 
Based on currently available information, despite potential short-term results’ volatility caused by the pandemic, 
the Group’s performance 
is not expected 
to be significantly 
impaired in 
the medium 
to long term 
as the significant 
part 
of 
its 
operated 
assets 
remains 
regulated 
and/or 
long-term 
contracted. 
However, 
the 
management 
cannot 
preclude 
the 
possibility 
that 
any 
extension 
of 
the 
current 
measures, 
or 
any 
re-introduction 
or 
escalation 
of 
lockdowns, or a consequential adverse 
impact of such measures on 
the economic environment where the 
Group 
operates will have an adverse effect on the Group, and its financial position and operating results, in the medium 
and long 
term. The 
Group continues to 
monitor the situation 
closely and 
will respond to 
mitigate the impact 
of 
such events and circumstances as they occur. 
Other information about subsequent events that occurred after the reporting date 
Except 
the 
subsequent 
events 
described 
in 
the 
Note 
36 
of 
attached 
Financial 
statements 
for 
the 
year 
2020, 
management is not aware of any additional subsequent events that occurred after 
reporting date to be disclosed. 
Management 
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 
the 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. 
 
 

Board of Directors 
The Board of 
Directors has seven 
members. All members 
of the 
Board of Directors 
are executive. 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. The 
positions 
of the Chairman of the Board of Directors and the Chief Executive Officer are combined. Members of the Board 
of Directors are 
obliged to discharge 
the office 
with necessary loyalty as 
well as 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 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. 
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. 
 
 

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. 
In relation 
to the 
direct and 
indirect shareholdings in 
EPIF 
and the management and the affairs of the Group (the “EPIF Shareholders’ Agreement”). 
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 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. 
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 2020, 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 2020, 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. 
Information on environmental protection activities 
In 
2020, 
the 
EPIF Group 
continued to 
be very 
active in 
the 
area 
of 
environmental protection. 
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, Germany and 
Hungary. 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 CO2, sulfur oxides 
(SOx), nitrogen oxides (NOx), carbon monoxide (CO) and solid dust particles 
emissions (SDP). 
EPIF will 
continue to 
maintain its 
compliance with 
the environmental 
legislative requirements. 
In 2020, 
the Group 
continued to invest considerable amounts into the refurbishment of several plants. 

In 2020, 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. Mid-term plan for decarbonisation continued. The reconstruction of the K6 boiler was 
started with the aim 
of enabling 100% combustion of 
wood biomass. Furthermore, the 
flue gas cleaning system 
of the K8 boiler was modernized. 
In 
2020, 
in 
United 
Energy, 
a.s. 
inspections 
were 
also 
carried 
out 
by 
state 
administration 
supervisory 
bodies 
regarding 
compliance with 
Integrated 
permit 
conditions in 
the 
areas 
of 
water 
protection, 
air 
protection, waste 
management and other 
areas of 
the Integrated 
Prevention Act. 
According to the 
final protocol, 
no violations or 
non-compliances were found. 
In 2020 Elektrárny Opatovice 
defended during the independent 
supervisory audit the 
environmental management 
system based on the international standard ČSN ISO 14001, within which it strives to minimize the impact of its 
activities on the environment. Compliance with legislative requirements in the 
field of environmental protection 
was also confirmed by an inspection by the state administration supervisory 
body. 
The ISO 14001 certificate 
holders are also 
Pražská teplárenská a.s., eustream, a.s., 
Stredoslovenská distribučná, 
a.s., Plzeňská teplárenská, a.s., POZAGAS a.s., TERMONTA PRAHA a.s. or NAFTA a.s. 
In 
2020, 
the 
main 
steam 
turbine 
used 
for 
cogeneration production 
was 
replaced at 
Elektrárny 
Opatovice, a.s., 
including the 
related equipment 
such as 
control systems 
and primary 
heat exchangers. 
The upgraded 
back-pressure 
turbine will have capacity of 65 MWe 
and 135 MWth. The replacement has enhanced reliability of supplies and 
also has increased the production efficiency, thus lowering the emission intensity. 
Plzeňská teplárenská, a.s. 
throughout the year complied 
with the conditions set 
in integrated permits 
of individual 
company 
premises, 
which 
was 
confirmed 
by 
regular 
inspections 
by 
the 
Czech 
Environmental 
Inspectorate 
environment. 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. 
During 
the 
year, 
the 
requirements 
were 
reviewed 
and 
evaluated 
according to the EU 
Decision on the best 
available techniques, the 
so - called BAT for combustion equipment. 
In 
2020, a recertification audit of the implemented system took place environmental management according to ISO 
14001, which has also been extended to the Energetika complex. The certification audit proved the ability of the 
set system to meet the requirements of products, services and the environment. 
NAFTA 
continued its 
traditional contributions 
to community 
projects in 
locations where 
it operates. 
NAFTAs 
commitment 
to the environment 
remains 
strong 
and 
NAFTA 
continues 
to 
be 
dedicated 
to 
its 
protection 
and 
sustainable development. In 2020, 
NAFTA 
continued to concentrate on 
environmental protection, preparing for 
the closure of 
sites when work 
there will be 
completed and supporting 
environmental protection. In 
addition to 
these projects, 
Attention was 
paid to 
NAFTAs 
wells’ safety 
systems and 
to replacing 
the “Christmas 
trees” on 
NAFTAs 
wells and other parts of NAFTAs 
equipment. Investment was focused on new pipeline connections 
to 
ensure injection 
and production at different delivery points and to prevent methane emissions. 
NAFTA successfully passed 
a safety 
audit conducted 
at its 
Inzenham- West, Wolfersberg and Breitbrunn/Eggstätt 
facilities 
by 
Berufsgenossenschaft 
Rohstoffe 
und 
Chemische 
Industrie 
(BG 
RCI), 
an established 
professional 
association. NAFTA Speicher 
also successfully 
completed a 
periodic inspection 
for the issue 
of a 
permit to 
operate 
our storage facilities 
in the coming 
years. Both of 
these events confirm 
the appropriateness of corporate 
processes 
and activities 
that have 
been set 
up. Passing 
both the 
audit and the inspection 
provides firm 
assurance of 
NAFTA’s 
safe operation of these facilities. 
In 2020, NAFTA 
once again successfully passed a recertification audit, 
whose attention focused on maintaining 
and improving 
standards and 
management for 
workover, drilling and 
slickline services 
in the company. NAFTA’s 
ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certifications 
were defended, affirming its professionality 
in
 
quality
 
management,
 
environmental
 
protection
 
and
 
occupational
 
health
 
and
 
safety.
 
In
 
this
 
area
 
of
 
our
 
operations, NAFTA received a 
Safety Certificate 
for Contractors 
(SCC), which 
allows NAFTA to bring workover 
and drilling experience to other markets, such as Germany, in the future. 

An important air protection project 
continues to be carried out 
by eustream a.s. 
“the modification of the Nuovo 
Pignone gas 
turbines to 
use Dry 
Low Emissions 
(DLE) technology” 
to comply 
with Directive 
of the 
European 
Parliament and of the Council No. 2010/75/EU on Industrial Emissions. 
In 2020 eustream, a.s. completed projects focused on 
the transmission system development with total investment 
costs 
of 
more 
than 
€38 
million, 
including 
mainly 
the 
Polish-Slovakian 
Gas 
Interconnection 
(expected 
to 
be 
commissioned in 2021/2022) and expansion of 
the splitting junction at Lakšárska Nová Ves 
with an installation 
of natural gas transmission compressor station (successfully commissioned 
6/2020). 
SPP 
- 
distribúcia, 
a.s. 
has 
already 
commenced 
testing 
feasibility 
of 
blending 
hydrogen 
into 
natural 
gas 
in 
its 
distribution network. 
Based on 
own tests 
and similar 
trials performed 
abroad, SPPD 
believes that 
transporting 
natural gas with up 
to 20% hydrogen should 
be feasible, provided that 
small modifications of 
certain gas network 
components or consumers’ 
appliances are performed. The 
testing is currently performed 
in laboratory conditions, 
whereby a trial of the blended gas in an isolated part of the distribution network 
is planned for 2022. 
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. 
For example, United Energy, a.s. is entitled to use the label of Ecological firm for its responsible approach to the 
environment, 
used 
product take 
-back 
and 
waste 
sorting. 
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. 
Development of a waste 
-to-energy plant is 
also contemplated by 
Elektrárny 
Opatovice, a.s. and United Energy, 
a.s. with both projects being 
in a preparatory phase. Basic 
feasibility studies 
of the projects 
are prepared, including 
determination of capacity and 
waste balances in 
the region. Negotiations 
were also 
held with 
representatives of 
respective towns 
and municipalities 
and. At 
the same 
time, an 
open dialogue 
relating to both 
projects is maintained 
with all stakeholders. 
The timing of 
the realization depends 
primarily on 
development of 
waste legislation 
which currently 
imposes ban 
on waste 
landfilling from 
2030, making 
more waste 
available for energy recovery. 
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 
funneled 
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. 
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 
lightning, 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. 
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. 
EPIF employees are 
interested in overall 
EPIF economic performance. 
As internal stakeholders, 
they are engaged 
in business issues 
at the local 
level, being especially 
interested in the 
performance of 
the subsidiary they 
work for. 
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. Currently the Group 
is working on the 
implementation of a Group-wide 
reporting system which 
is 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. 
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. 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 to 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. 
Environmental, Social and Governance matters 
Throughout 
2020, 
EPIF 
continued 
to 
focus 
on 
its 
performance 
in 
the 
environmental, 
social 
and 
governance 
matters,
 
acknowledging
 
its
 
responsibility
 
for
 
the
 
environment,
 
employees,
 
communities,
 
and
 
all
 
other
 

stakeholders. On 
8 April 
2020, EPIF 
obtained an 
ESG rating 
65/100 from 
the top 
in class 
rating agency 
S&P, 
becoming the first company in the CEE to have obtained such rating. 
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 changes. 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. 
EPIF has 
already taken 
important steps 
in this 
direction by 
adding biomass 
to the 
energy mix 
– through 
acquisition of 
Plzeňská teplárenská 
at the 
end of 2018, 
where the share 
of biomass is 
expected to grow 
further under EPIF 
ownership. This will 
be 
complemented
 
by
 
refurbishment
 
of
 
an
 
existing
 
lignite
 
boiler
 
at
 
United
 
Energy
 
to
 
enable
 
100%
 
biomass
 
combustion. In 
2020, we 
also reduced 
our carbon 
footprint by 
replacement of 
the main 
steam turbine 
at Elektrárny 
Opatovice which is more efficient and therefore less emission intensive. 
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. 
Throughout 
2020, 
there 
have 
been 
no 
serious interruptions in supplies despite challenges posed by the COVID-19 
pandemic. 
In 
Q4 
2020, 
EPIF 
substantially 
reduced 
its 
direct 
and 
indirect 
carbon 
footprint 
through 
disposals 
of 
Pražská 
teplárenská a.s., a major heat supplier in the city of Prague, 
and Budapesti Erőmű Zrt., the key heat supplier and 
major power producer in the city of Budapest. 
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 behaviour, 
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 2020, there were no reported 
breaches of the Code of Conduct. 
Sustainability report 
At the end of August 2020, EPIF issued its second Sustainability report covering year 2019. For the 
first time, it 
incorporates EPIF’s 
alignment with 
the United 
Nations Sustainable 
Development Goals 
and the 
2030 Agenda. 
Sustainability report for year 2020 is planned to be issued during Q2 2021. 
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. 
Statutory Declaration by Person Responsible for the EPIF Group 2020 Annual Report 
With the use 
of all reasonable care, to the 
best of our knowledge the consolidated Annual 
Report provides in all 
material respects 
a true 
and accurate 
view and 
is not 
misleading in 
any material 
respects view 
of the 
financial 
situation, business activities, and 
results of operations of 
EPIF and its 
consolidated group for the 
year 2020 and 
of the outlook for 
the future development of the 
financial situation, business activities, and 
results of operations 
of EPIF and its consolidated group, and no facts have been omitted 
that could change the meaning of this report. 
 
 

I
V
.
 
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 (1) of the 
Corporations Act (Act No. 90/2012 Coll., as amended) 
 
(“
the Report
”) 
__________________________________________________ 
 
I.
 
 
Preamble 
 
The Report 
has been 
prepared pursuant 
to Section 82 
(1) of 
the Corporations 
Act (Act 
No. 90/2012 
Coll., 
as amended). 
 
 
The 
Report 
has 
been 
submitted 
for 
review 
to 
the 
Company’s 
supervisory 
board 
in 
accordance 
with 
Section 83 (1) 
of the Corporations Act 
(Act No. 90/2012 Coll., 
as amended) and the 
supervisory board’s 
position 
will 
be 
communicated 
to 
the 
Company’s 
general 
meeting 
deciding 
on 
the 
approval 
of 
the 
Company’s 
ordinary 
financial 
statements 
and 
on 
the 
distribution 
of 
the 
Company’s 
profit 
or 
the 
settlement of its loss. 
 
 
The Report has been prepared for the 2020 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
 
Reg. No.: 05711452
 
 
INDIRECTLY 
CONTROLLING ENTITIES:
 
Energetický a průmyslový holding, a.s. 
 
Registered office: 
Pařížská 130/26, Josefov, 110 
00 Praha 1, 
Czech Republic
 
Reg. No.: 28356250
 
 
EP Investment S.a r.l. 
 
Registered office: 
39, Avenue J.F. 
Kennedy, L – 1855, 
 
Luxembourg, Luxembourg
 
Reg. No.: 
B 184488
 
 
 

 
OTHER CONTROLLED ENTITIES
 
Entities controlled by the same controlling entities are specified in the appendix to the Report
 
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 specified by Section 82 (2) (d) of Act No. 90/2012 Coll., the 
Corporations Act 
 
In 2020, no 
other actions were taken 
at the initiative or 
in the interest of 
the controlling entity that 
would 
concern 
assets 
exceeding 
10% 
of 
the 
controlled 
entity’s 
equity 
as 
determined 
from 
the 
most 
recent 
financial statements, except for the payment of profit share.
 
The Company paid a profit share exceeding 10% of the Company’s equity.
 
V.
 
Agreements 
concluded between EP Infrastructure, 
a.s. and other related entities 
 
V.1.1.
 
In 2020, the following loan agreements were effective:
 
On
 
16
 
March
 
2016,
 
a
 
loan
 
agreement
,
 
including
 
valid
 
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 was signed between EP Infrastructure, 
a.s. as the creditor and EPH 
Gas Holding B.V. 
as the debtor.
 
On
 
20
 
April
 
2018,
 
a
 
loan
 
agreement
,
 
including
 
valid
 
amendments
,
 
was
 
signed
 
between
 
EP Infrastructure, a.s as the creditor and EP Energy, a.s. as the debtor.
 
On
 
14
 
October
 
2019,
 
a
 
loan
 
agreement
,
 
including
 
valid
 
amendments
,
 
was
 
signed
 
between
 
EP Infrastructure, a.s. as the creditor and EP Energy, 
a.s. 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 was 
signed between 
EP Infrastructure, 
a.s. as 
the creditor 
and 
EPH Gas Holding B.V. 
as the debtor.

 
 
On 13 February 
2020, a 
loan agreement was 
signed between EP 
Infrastructure, a.s. as 
the creditor and 
Czech Gas Holding Investment B.V. 
as the debtor.
 
 
On 
28 
May 
2020, 
a 
loan 
agreement 
was 
signed 
between 
EP 
Infrastructure, 
a.s. 
as 
the 
creditor 
and 
Claymore Equity, s.r.o. 
as the debtor.
 
 
On 
3 
November 
2020, 
a 
loan 
agreement 
was 
signed 
between 
EP 
Energy, 
a.s. 
as 
the 
creditor 
and 
EP 
Infrastructure, a.s. as the debtor.
 
 
V.1. 
2.
 
In 2020, the following operating contracts were effective:
 
 
An
 
agreement
 
on
 
providing
 
professional
 
assistance
 
signed
 
by
 
and
 
between
 
AISE,
 
s.r.o.
 
a
nd
 
EP
 
Infrastructure, a.s. on 2 January 2018.
 
 
An agreement 
on providing professional 
assistance signed by 
and between Alternative 
Energy, s.r.o. and 
EP Infrastructure, a.s. on 2 January 2018.
 
 
An 
agreement 
on 
providing 
professional 
assistance 
signed 
by 
and 
between 
ARISUN, 
s.r.o. 
and 
EP 
Infrastructure, a.s. on 2 January 2018.
 
 
An agreement on 
providing professional assistance 
signed by and 
between Budapesti Erőmű 
Zártkörűen 
Működő Részvénytársaság 
and EP 
Infrastructure, a.s. 
on 2 
January 2018. 
This agreement 
was terminated 
on 31 October 2020.
 
 
An agreement 
on providing professional 
assistance, including 
valid amendments, signed 
by and 
between 
Elektrárny Opatovice, a.s. and EP Infrastructure, a.s. on 1 October 2018. 
 
 
An agreement on processing of personal data signed by and between Elektrárny 
Opatovice, a.s. and EP 
Infrastructure, a.s. on 1 October 2018.
 
 
An
 
agreement
 
on
 
providing
 
professional
 
assistance
 
signed
 
by
 
and
 
between
 
 
Energetický 
a 
průmyslový 
holding, 
a.s. 
as 
the 
provider 
and 
EP 
Infrastructure, 
a.s. 
as 
the 
client 
on 
2 
January 2017.
 
 
An
 
agreement
 
on
 
providing
 
profession
al
 
assistance
 
signed
 
by
 
and
 
between
 
 
Energetický 
a 
průmyslový 
holding, 
a.s. 
as 
the 
client 
and 
EP 
Infrastructure, 
a.s. 
as 
the 
provider 
on 
2 
January 2018.
 
 
An 
agreement 
on 
providing 
professional 
assistance 
signed 
by 
and 
between 
EP 
Cargo 
a.s. 
and 
EP 
Infrastructure, a.s. on 26 October 2018. 
 
 
An
 
agreement
 
on
 
processing
 
of
 
personal
 
data
 
signed
 
by
 
and
 
between
 
EP
 
Cargo
 
a.
s.
 
and
 
 
EP Infrastructure, a.s. on 26 October 2018.
 
 
An
 
agreement
 
on
 
providing
 
professional
 
assistance
 
signed
 
by
 
and
 
between
 
 
EP ENERGY TRADING, a.s. and EP Infrastructure, a.s. on 1 October 2018. 
 
 
An
 
agreement
 
on
 
processing
 
of
 
personal
 
data
 
signed
 
by
 
and
 
between
 
 
EP ENERGY TRADING, a.s. and EP Infrastructure, a.s. on 1 October 2018.
 
 
An 
agreement 
on 
providing 
professional 
assistance 
signed 
by 
and 
between 
EP 
Industries, 
a.s. 
as 
the 
provider and EP Infrastructure, a.s. as the client on 2 January 2018.
 
 

 
An 
agreement 
on 
providing 
professional 
assistance 
signed 
by 
and 
between 
EP 
Industries, 
a.s. 
as 
the 
client and EP Infrastructure, a.s. as the provider on 
2 January 2018.
 
An
 
agreement
 
on
 
providing
 
professional
 
assistance
 
signed
 
by
 
and
 
between
 
EP
 
Investment
 
Advisors, s.r.o. and EP Infrastructure, a.s. on 2 January 2015, including all amendments.
 
A
 
sublease
 
agreement
 
signed
 
by
 
and
 
between
 
EP
 
Investment
 
Advisors,
 
s.r.o.
 
and
 
EP Infrastructure, a.s. on 15 June 2017, including all amendments.
 
An agreement on providing professional assistance 
signed by and between EP Power Europe, 
a.s. as the 
provider and EP Infrastructure, a.s. as the client on 2 January 2018.
 
An agreement on providing professional assistance 
signed by and between EP Power Europe, 
a.s. as the 
client and EP Infrastructure, a.s. as the provider on 2 January 2018.
 
An agreement 
on providing 
professional assistance 
signed by 
and between 
EP 
Slovakia B.V. 
and EP 
Infrastructure, a.s. on 3 April 2017.
 
An 
agreement 
on 
providing 
professional 
assistance signed 
by 
and 
between 
EP 
Sourcing, 
a.s. 
and 
EP 
Infrastructure, a.s. on 26 October 2018. 
 
An
 
agreement
 
on
 
processing
 
of
 
personal
 
data
 
signed
 
by
 
and
 
between
 
EP
 
Sourcing,
 
a.s.
 
and
 
EP Infrastructure, a.s. on 26 October 2018.
 
An agreement on providing professional assistance signed by and between 
Plzeňská teplárenská a.s. (as 
the
 
legal
 
successor
 
of
 
Plzeňská
 
energetika,
 
a.s.)
 
a
nd
 
EP
 
Infrastructure,
 
a.s.
 
on 1 October 2018. 
 
An agreement 
on processing 
of personal 
data signed 
by and 
between Plzeňská 
teplárenská a.s. 
(as the 
legal
 
successor
 
of
 
Pl
zeňská
 
energetika,
 
a.s.)
 
and
 
EP
 
Infrastructure,
 
a.s.
 
on 1 October 2018.
 
An
 
agreement
 
on
 
providing
 
professional
 
assistance
 
signed
 
by
 
and
 
between
 
POZAGAS
 
a.s.
 
and EP Infrastructure, a.s. on 2 January 2019.
 
An
 
agreement
 
on
 
processing
 
of
 
personal
 
data
 
signed
 
by
 
and
 
between
 
POZAGAS
 
a.s.
 
and EP Infrastructure, a.s. on 2 January 2019.
 
An agreement 
on 
providing 
professional assistance 
signed 
by and 
between 
POWERSUN a.s. 
and 
EP 
Infrastructure, a.s. on 2 January 2018.
 
An
 
agreement
 
on
 
providing
 
professional
 
assistance
 
signed
 
by
 
and
 
between
 
Pražská teplárenská a.s. 
and EP Infrastructure, 
a.s. on 1 
October 2018. This 
agreement was terminated 
on 31 October 2020.
 
An agreement 
on processing 
of personal 
data signed 
by and 
between Pražská 
teplárenská a.s. 
and EP 
Infrastructure,
 
a.s.
 
on
 
28
 
January
 
2019.
 
This
 
agreement
 
was
 
terminated
 
on 31 October 2020.
 
An
 
agreement
 
on
 
providing
 
professional
 
assistance
 
signed
 
by
 
and
 
between
 
Severočeská
 
teplárenská,
 
a.s.
,
 
including
 
valid
 
a
mendments,
 
and
 
EP
 
I
nfrastructure,
 
a.s.
 
on 1 October 2018. 
 
An
 
agreement
 
on
 
processing
 
of
 
personal
 
data
 
signed
 
by
 
and
 
between
 
Severočeská teplárenská, a.s. and EP Infrastructure, a.s. on 1 October 2018.

 
An agreement 
on providing 
professional assistance 
signed by 
and between 
SPP Storage, 
s.r.o. 
and EP 
Infrastructure, a.s. on 2 January 2019.
 
An
 
agreemen
t
 
on
 
processing
 
of
 
personal
 
data
 
signed
 
by
 
and
 
between
 
SPP
 
Storage,
 
s.r.o.
 
and EP Infrastructure, a.s. on 2 January 2019.
 
An
 
agreement
 
on
 
providing
 
professional
 
assistance
 
signed
 
by
 
and
 
between
 
TERMONTA PRAHA a.s. and 
EP Infrastructure, 
a.s. on 
2 January 
2018. This 
agreement was 
terminated 
on 31 October 2020.
 
An
 
agreement
 
on
 
providing
 
professional
 
assistance
 
signed
 
by
 
and
 
between
 
Triskata,
 
s.r.o.
 
and EP Infrastructure, a.s. on 2 January 2018.
 
An
 
agreement
 
on
 
providing
 
profe
ssional
 
assistance,
 
including
 
valid
 
amendments,
 
signed
 
by and between United Energy, a.s. and 
EP Infrastructure, a.s. on 1 October 2018. 
 
An
 
agreement
 
on
 
processing
 
o
f
 
personal
 
data
 
signed
 
by
 
and
 
between
 
United
 
Energy,
 
a.s.
 
and EP Infrastructure, a.s. on 1 October 2018.
 
An agreement on providing professional 
assistance signed by and between 
VTE Moldava II, a.s. 
and EP 
Infrastructure, a.s. on 2 January 2018.
 
An agreement 
on providing 
professional assistance 
signed by 
and between 
VTE Pchery, 
s.r.o. 
and EP 
Infrastructure, a.s. on 2 January 2018.
 
Order
 
on
 
providing
 
professional
 
assistance
 
received
 
by
 
EP
 
Infrastructure,
 
a.s.
 
from
 
NAFTA, a.s., as the client, 
on 8 January 
2019.
 
Order
 
on
 
providing
 
professional
 
assistance
 
received
 
by
 
EP
 
Infrastructure,
 
a.s.
 
from Stredoslovenská distribučná, a.s., as the client, on 19 February 2020.

 
 
V.2.
 
Other juridical acts made between EP Infrastructure, 
a.s. and other related entities 
 
 
Except
 
for
 
the
 
above
 
mentioned,
 
no
 
other
 
agreements
 
were
 
entered
 
into
 
by
 
and
 
between
 
 
EP Infrastructure, a.s. and related entities, and no supplies or considerations were provided between EP 
Infrastructure, a.s. and related entities.
 
 
EP Infrastructure, a.s. did not adopt or carry out any other juridical acts or measures in the interest or at 
the initiative of related entities.
 
 
V.3.
 
Transactions, receivables 
and payables of EP Infrastructure, a.s. vis-à-vis related entities 
 
 
The
 
r
eceivables
 
and
 
payables
 
of
 
EP
 
Infrastructure
,
 
a.s.
 
from/to
 
related
 
parties
 
as
 
 
at
 
31
 
December
 
2020
 
are
 
disclosed
 
in
 
the
 
notes
 
to
 
the
 
financial
 
statements
 
 
of EP Infrastructure, a.s.
 
 
VI.
 
 
We 
hereby 
confirm 
that 
we 
have 
included 
in 
this 
Report 
on 
relations 
between 
related 
entities 
of 
EP 
Infrastructure,
 
a.s.,
 
prepared
 
pursuant
 
to
 
Section
 
82
 
(1)
 
of
 
the
 
Corporations
 
Act
 
 
(Act
 
No.
 
90/201
2
 
Coll.,
 
as
 
amended)
 
for
 
the
 
accounting
 
period
 
from
 
1
 
January
 
2020
 
to
 
 
31 December 2020, all information known as at the date of signing this report, regarding:
 
 
●
 
agreements between related parties; 
●
 
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 parties. 
 
In addition, the board of directors of EP Infrastructure, a.s. declares that EP Infrastructure, a.s. incurred 
no 
damage as 
a 
result 
of 
the 
actions 
of 
the 
controlling 
entity or 
of 
any 
entity 
controlled 
by 
the same 
entity. 
All transactions between the controlled 
entity and the controlling entity 
or entities controlled by 
the 
same 
controlling 
entity 
were 
concluded 
at 
arm's 
length. 
The 
contractual 
and 
other 
relations 
with 
related parties resulted in no loss or financial advantage or disadvantage to EP Infrastructure, a.s.
 
 

 
 
Appendix to the Report on Relations 
Company 
Country of incorporation 
ABS PROPERTY LIMITED 
Ireland 
Adconcretum real estate Ltd. 
Serbia 
Aerodis, S.A. 
France 
AISE, s.r.o. 
Czech Republic 
Alternative Energy, 
s.r.o. 
Slovakia 
ARISUN, s.r.o. 
Slovakia 
Biomasse Crotone S.p.A. 
Italy 
Biomasse Italia S.p.A. 
Italy 
Biomasse Servizi S.r.l. 
Italy 
Bohr & Brunnenbau GmbH 
Germany 
Boldore a.s. 
Czech Republic 
Budapesti Erõmû Zrt. 
Hungary 
Central European Gas Hub AG 
Austria 
Centro Energia Ferrara S.p.A. 
Italy 
Centro Energia Teverola 
S.p.A. 
Italy 
Centrum pre vedu a výskum, s. r. 
o. 
Slovakia 
Claymore Equity, s. r. 
o. 
Slovakia 
CNG Holdings Netherlands B.V. 
Netherlands 
CNG LLC 
Ukraine 
CR-EP s.r.o. 
Czech Republic 
Czech Gas Holding Investment B.V 
Netherlands 
CZECH MEDIA INVEST a.s. 
Czech Republic 
DCR INVESTMENT a.s. 
Czech Republic 
Dynamo S.A.S. 
France 
Eastring B.V. 
Netherlands 
EC Investments a.s. 
Czech Republic 
Eggborough Power Ltd 
Great Britain 
Elektrárny Opatovice, a.s. 
Czech Republic 
Elektroenergetické montáže, s.r.o. 
Slovakia 
Energia-pro Zrt. 
Hungary 
ENERGOPROJEKTA 
plan s.r.o. 
Czech Republic 
Energotel,a.s. 
Slovakia 

 
 
ENERGZET SERVIS a.s. 
Czech Republic 
EOP HOKA POLSKA SPÓŁKA Z OGRANICZONA 
ODPOWIEDZIALNOSCIA 
Poland 
EOP HOKA SK, s. r. o. 
Slovakia 
EP Auto, s.r.o. 
Czech Republic 
EP Ballylumford Limited 
Great Britain 
EP Cargo a.s. 
Czech Republic 
EP Cargo Deutschland GmbH 
Germany 
EP Cargo Invest a.s. 
Czech Republic 
EP CARGO POLSKA SPÓŁKA AKCYJNA 
Poland 
EP Cargo Trucking CZ s.r.o. 
(EOP & HOKA s.r.o.) 
Czech Republic 
EP COAL TRADING POLSKA S.A. 
Poland 
EP Commodities Ukraine TOB 
Ukraine 
EP Commodities, a.s. 
Czech Republic 
EP Corporate Group, a.s. 
Czech Republic 
EP ENERGY HR d.o.o. za usluge 
Croatia 
EP ENERGY TRADING, a.s. 
Czech Republic 
EP Energy, 
a.s. 
Czech Republic 
EP Equity Investment II S.à r.l. 
Luxembourg 
EP Equity Investment S.à r.l. 
Luxembourg 
EP Fleet, k.s. 
Czech Republic 
EP France S.A.S. (Uniper France S.A.S.) 
France 
EP Germany GmbH 
Germany 
EP Hagibor a.s. 
Czech Republic 
EP Intermodal a.s. 
Czech Republic 
EP Invest Limited 
Great Britain 
EP Investment Advisors, s.r.o. 
Czech Republic 
EP Kilroot Limited 
Great Britain 
EP Langage Limited (Centrica Langage Limited) 
Great Britain 
EP Logistics International, a.s. 
Czech Republic 
EP Mehrum GmbH 
Germany 
EP Merseburg Transport und 
Logistik GmbH 
Germany 
EP New Energies GmbH 
Germany 
EP New Energy Italia S.r.l. 
Italy 
EP NI Energy Limited 
Great Britain 
EP Power Europe, a.s. 
Czech Republic 

 
 
EP Produzione 
S.p.A. 
Italy 
EP Produzione Centrale Livorno Ferraris S.p.A. 
Italy 
EP Properties, a.s. 
Czech Republic 
EP Resources AG 
Switzerland 
EP Resources CZ (EP Coal Trading, 
a.s.) 
Czech Republic 
EP Resources DE GmbH 
Germany 
EP SHB Limited (Centrica SHB Limited) 
Great Britain 
EP Slovakia B.V. 
Netherlands 
EP Sourcing, a.s. 
Czech Republic 
EP UK Finance Limited 
Great Britain 
EP UK Investments Ltd 
Great Britain 
EP UK Power Development Ltd 
Great Britain 
EP Ukraine B.V. 
Netherlands 
EP Ukraine B.V. 
Netherlands 
EP Waste Management 
Limited 
Great Britain 
EP Yuzivska 
B.V. 
Netherlands 
EPH Financing CZ, a.s. 
Czech Republic 
EPH Financing SK, a. s. 
Slovakia 
EPH Gas Holding B.V. 
Netherlands 
EPPE Germany a.s. 
Czech Republic 
EPR ASIA PTE. LTD. 
Singapore 
EPRE Reality s.r.o. 
Czech Republic 
Ergosud S.p.A. 
Italy 
eustream, a.s. 
Slovakia 
EVA 
Jänschwalde GmbH & Co. KG 
Germany 
EVA 
Verwaltungs 
GmbH 
Germany 
EVO - Komořany, 
a.s. 
Czech Republic 
Farma Lístek, s.r.o. 
Czech Republic 
Fernwärme GmbH Hohenmölsen - Webau 
Germany 
Fiume Santo S.p.A. 
Italy 
Fores Italia S.r.l. 
Italy 
Fusine Energia S.r.l. 
Italy 
GABIT spol. s r.o. 
Czech Republic 
GALA-MIBRAG-Service GmbH 
Germany 
GALANTATERM 
spol. s r.o. 
Slovakia 

 
 
Gazel Energie Generation S.A.S. (Uniper France Power 
S.A.S.) 
France 
Gazel Energie Renouvelables S.A.S. (Uniper Energies 
Renouvelables 
S.A.S.) 
France 
Gazel Energie Solaire S.A.S. (Uniper Climate & Renewables France 
Solar 
S.A.S.) 
France 
Gazel Energie Solutions S.A.S. (Uniper France Energy 
Solutions S.A.S.) 
France 
GEOTERM KOŠICE, a.s. 
Slovakia 
GMB GmbH 
Germany 
Greeninvest Energy, 
a.s. 
Czech Republic 
Helmstedter Revier GmbH 
Germany 
HG1 s.r.o. 
Czech Republic 
HG5 s.r.o. 
Czech Republic 
Humberland Limited 
Great Britain 
Humbly Grove Energy Limited 
Great Britain 
Humbly Grove Energy Services Limited 
Great Britain 
CHIFFON ENTERPRISES LIMITED 
Cyprus 
Illico S.A.S. 
France 
Ingenieurbüro für Grundwasser GmbH 
Germany 
JTSD - Braunkohlebergbau GmbH 
Germany 
Kardašovská Properties a.s. 
Czech Republic 
Karotáž a cementace, s.r.o. 
Czech Republic 
Kernaman S.A.S. 
France 
Kinet Inštal s.r.o. 
Slovakia 
Kinet s.r.o. 
Slovakia 
KŐBÁNYAHŐ 
Kft. 
Hungary 
Kraftwerk Mehrum GmbH 
Germany 
Kraftwerk Schkopau Betriebsgesellschaft mbH 
Germany 
Kraftwerk Schkopau GbR 
Germany 
Kraftwerk Schwarze Pumpe GmbH 
Germany 
Lausitz Energie Bergbau AG 
Germany 
Lausitz Energie Erneuerbare Verwaltungsgesellschaft 
mbH 
Germany 
Lausitz Energie Kraftwerke AG 
Germany 
Lausitz Energie PV Zschornewitz GmbH & Co. KG 
Germany 
Lausitz Energie Verwaltungs 
GmbH 
Germany 
Lausitz Energie Verwaltungsgesellschaft 
Brandenburg mbH 
Germany 
Lausitz Energie Verwaltungsgesellschaft 
Sachsen mbH 
Germany 
Lausitz Energie Vorsorge 
- 
und Entwicklungsgesellschaft Brandenburg 
GmbH & Co. KG 
Germany 

 
 
Lausitz Energie Vorsorge 
- 
und Entwicklungsgesellschaft Sachsen mbH & 
Co. KG 
Germany 
LEAG Holding, a.s. 
Czech Republic 
Lirostana s.r.o. 
Czech Republic 
LOCON Benelux B.V. 
Netherlands 
LOCON LOGISTIK & CONSULTING 
AKTIENGESELLSCHAFT 
Germany 
LOCON PERSONALSERVICE 
GmbH 
Germany 
LOCON SERVICE GMBH 
Germany 
LokoTrain s.r.o. 
Czech Republic 
Lynemouth Power Limited 
Great Britain 
MACKAREL ENTERPRISES LIMITED 
Cyprus 
Majorelle Investments S.à r.l. 
Luxembourg 
Malešice Reality s.r.o. 
Czech Republic 
MIBRAG 
Profen GmbH 
Germany 
MIBRAG Consulting International GmbH 
Germany 
MIBRAG Neue Energie GmbH 
Germany 
MIBRAG Schleenhain GmbH 
Germany 
Mining Services and Engineering Sp. z o.o. 
Poland 
Mitteldeutsche Braunkohlen Gesellschaft mbH 
Germany 
MR TRUST s.r.o. 
Czech Republic 
MUEG Mitteldeutsche Umwelt- 
und Entsorgung GmbH 
Germany 
Nadácia EPH 
Slovakia 
NADURENE 2 a.s. 
Czech Republic 
NAFTA a.s. 
Slovakia 
NAFTA a.s. 
(pozn: own shares in Nafta 1,49%) 
Slovakia 
NAFTA Bavaria GmbH 
Germany 
Nafta Exploration d.o.o. 
Croatia 
NAFTA Germany 
GmbH 
Germany 
NAFTA International 
B.V. 
Netherlands 
NAFTA RV 
Ukraine 
NAFTA Services, s.r.o. 
Czech Republic 
NAFTA Speicher 
GmbH & CO. KG 
Germany 
NAFTA Speicher 
Inzenham GmbH 
Germany 
NAFTA Speicher 
Management GmbH 
Germany 
Norddeutsche Gesellschaft zur Ablagerung von Mineralstoffen 
mbH ) 
Germany 
Nová Invalidovna, a.s. 
Czech Republic 

 
 
Nové Modřany, 
a.s. 
Czech Republic 
NPTH,a.s. v likvidaci 
Czech Republic 
Ogen s.r.o. 
Czech Republic 
Ochrana a bezpečnosť SE, s.r.o. 
Slovakia 
Patamon a.s. 
Czech Republic 
Plynárenská metrológia, s. r. 
o. 
Slovakia 
Plzeňská teplárenská SERVIS 
IN a.s 
Czech Republic 
Plzeňská teplárenská, a.s. 
Czech Republic 
Plzeňská teplárenská, AUTODOPRAVA 
s.r.o. 
Czech Republic 
Plzeňské služby facility s.r.o. 
Czech Republic 
Plzeňské služby s.r.o. 
Czech Republic 
Power Reality s.r.o. 
Czech Republic 
POWERSUN a.s. 
Czech Republic 
POZAGAS a.s. 
Slovakia 
Pražská teplárenská a.s. 
Czech Republic 
Pražská teplárenská Holding a.s. v likvidaci 
Czech Republic 
Przedsiębiorstwo Górnicze Silesia 
Poland 
PT Distribuční, s.r.o. 
Czech Republic 
PT Koncept, a.s. 
Czech Republic 
PT měření, a.s. 
Czech Republic 
PT Properties I, a.s. 
Czech Republic 
PT Properties II, a.s. 
Czech Republic 
PT Properties III, a.s. 
Czech Republic 
PT Properties IV, 
a.s. 
Czech Republic 
PT Real Estate, a.s. 
Czech Republic 
PT Transit, a.s. 
Czech Republic 
PT-Holding 
Investment B.V. 
Netherlands 
RAILSPED, s.r.o. 
Czech Republic 
REAKTORTEST, 
s.r.o. 
Slovakia 
RM LINES, a.s. 
Czech Republic 
RPC, a.s. 
Czech Republic 
RVA 
Consulting Engineers Ltd 
Great Britain 
RVA 
Engineering Solutions Ltd 
Great Britain 
RVA 
Group GmbH 
Germany 
RVA 
Group Ltd 
Great Britain 

 
 
Saale Energie GmbH 
Germany 
SAJDOK a.s. 
Czech Republic 
SE Služby inžinierskych stavieb, s. r. 
o. 
Slovakia 
Seattle Holding B.V 
Netherlands 
Sedilas Enterprises limited 
Cyprus 
Severočeská teplárenská, a.s. 
Czech Republic 
SGC-LOGISTICS GMBH 
Germany 
Slovak Gas Holding B.V. 
Netherlands 
Slovak Power Holding B.V. 
Netherlands 
Slovakian Horizon Energy, 
s.r.o. 
Slovakia 
Slovenské elektrárne - energetické služby, 
s.r.o. 
Slovakia 
Slovenské elektrárne Czech Republic, 
s.r.o. 
Czech Republic 
Slovenské elektrárne, a.s. 
Slovakia 
SLOVGEOTERM a.s. 
Slovakia 
SLUGGERIA .a.s. 
Czech Republic 
Société des Eaux de l'Est S.A. 
France 
SPEDICA GROUP COMPANIES, 
s.r.o. 
Czech Republic 
SPEDICA LOGISTIC, s.r.o. 
Czech Republic 
SPEDICA, s.r.o. 
Czech Republic 
SPP – distribúcia Servis, s.r.o. 
Slovakia 
SPP – distribúcia, a.s. 
Slovakia 
SPP Infrastructure Financing B.V. 
Netherlands 
SPP Infrastructure, a. s. 
Slovakia 
SPP Storage, s.r.o. 
Czech Republic 
SPV100, s. r. o. 
Slovakia 
SPX, s.r.o. 
Slovakia 
SSE - Metrológia, s.r.o. 
Slovakia 
SSE - MVE, s.r.o. 
Slovakia 
SSE CZ, s.r.o. 
Czech Republic 
SSE-Solar, s.r.o. 
Slovakia 
Stredoslovenská distribučná, a.s. 
Slovakia 
Stredoslovenská energetika - Project Development, 
s.r.o. 
Slovakia 
Stredoslovenská energetika Holding, a.s. 
Slovakia 
Stredoslovenská energetika, a. s. 
Slovakia 
Střelničná reality, a.s. 
Czech Republic 

 
 
Surschiste, S.A. 
France 
Tagebau Profen 
GmbH & Co. KG 
Germany 
Tagebau Schleenhain 
GmbH & Co. KG 
Germany 
Teplo Neratovice, 
spol. s r.o. 
Czech Republic 
TERMONTA PRAHA a.s. 
Czech Republic 
Terrakomp GmbH 
Germany 
Transport- 
und Speditionsgesellschaft Schwarze Pumpe mbH (TSS GmbH) 
Germany 
Triskata, s.r.o. 
Slovakia 
Tynagh Energy 
Limited 
Ireland 
ÚJV Řež, a. s. 
Czech Republic 
United Energy , a.s. 
Czech Republic 
United Energy Invest, a.s. 
Czech Republic 
United Energy Moldova, s.r.o. 
Czech Republic 
V A H O s.r.o. 
Czech Republic 
VESA EQUITY INVESTMENT S.à r.l. 
Luxembourg 
VTE Moldava II, a.s. 
Czech Republic 
VTE Pchery, s.r.o. 
Czech Republic 
Windpark Breunsdorf I GmbH (Zukunft 
VIII GmbH) 
Germany 
Windpark Profen II GmbH (Zukunft IX 
GmbH) 
Germany 
Wohnwert Hohenmölsen 
GmbH 
(Zukunft X GmbH) 
Germany 
WOOGEL LIMITED 
Cyprus 
Zálesí Reality s.r.o. 
Czech Republic 
Zukunft I GmbH 
Germany 
Zukunft II GmbH 
Germany 
Zukunft III GmbH 
Germany 
Zukunft IV GmbH 
Germany 
Zukunft V GmbH 
Germany 
Zukunft VI GmbH 
Germany 
Zukunft VII GmbH 
Germany 
 

 
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 2020 
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 2020 
 
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
 
................................
................................
................................
................................
...........................
 
10
 
3.
 
Significant
 
Accounting
 
Policies
 
................................
................................
................................
................................
.........
 
15
 
4.
 
Determination
 
of
 
fair
 
values
 
................................
................................
................................
................................
..............
 
35
 
5.
 
Operating
 
segments
................................
................................
................................
................................
............................
 
37
 
6.
 
Acquisitions
 
and
 
disposals
 
of
 
subsidiaries,
 
joint
-
ventures
 
and
 
associates
 
................................
................................
.........
 
44
 
7.
 
Sales
 
................................
................................
................................
................................
................................
...................
 
47
 
8.
 
Cost
 
of
 
sales
 
................................
................................
................................
................................
................................
.......
 
48
 
9.
 
Personnel
 
expenses
 
................................
................................
................................
................................
............................
 
48
 
10.
 
Emission
 
rights
 
................................
................................
................................
................................
................................
..
 
48
 
11.
 
Taxes
 
and
 
charges
 
................................
................................
................................
................................
..............................
 
49
 
12.
 
Other
 
operating
 
income
 
................................
................................
................................
................................
.....................
 
49
 
13.
 
Other
 
operating
 
expenses
 
................................
................................
................................
................................
...................
 
50
 
14.
 
Finance
 
income
 
and
 
expense,
 
profit
 
(loss)
 
from
 
financial
 
instruments
 
................................
................................
..............
 
51
 
15.
 
Income
 
tax
 
expenses
 
................................
................................
................................
................................
..........................
 
51
 
16.
 
Property,
 
plant
 
and
 
equipment
 
................................
................................
................................
................................
...........
 
53
 
17.
 
Intangible
 
assets
 
(including
 
goodwill)
 
................................
................................
................................
...............................
 
55
 
1
8
.
 
Deferred
 
tax
 
assets
 
and
 
liabilities
................................
................................
................................
................................
.......
 
58
 
19.
 
Inventories
 
................................
................................
................................
................................
................................
.........
 
60
 
20.
 
Trade
 
receivables
 
and
 
other
 
assets
 
................................
................................
................................
................................
.....
 
61
 
21.
 
Cash
 
and
 
cash
 
equivalents
 
................................
................................
................................
................................
.................
 
61
 
22.
 
Equity
................................
................................
................................
................................
................................
.................
 
61
 
23.
 
Earnings
 
per
 
share
 
................................
................................
................................
................................
..............................
 
63
 
24.
 
Non
-
controlling
 
interest
 
................................
................................
................................
................................
.....................
 
64
 
25.
 
Loans
 
and
 
borrowings
 
................................
................................
................................
................................
........................
 
66
 
26.
 
Provisions
 
................................
................................
................................
................................
................................
..........
 
74
 
27.
 
Deferred
 
income
 
................................
................................
................................
................................
................................
 
77
 
28.
 
Financial
 
instruments
 
................................
................................
................................
................................
.........................
 
78
 
29.
 
Trade
 
payables
 
and
 
other
 
liabilities
 
................................
................................
................................
................................
...
 
81
 
30.
 
Commitments
 
and
 
contingencies
 
................................
................................
................................
................................
.......
 
82
 
31.
 
Leases
 
................................
................................
................................
................................
................................
................
 
82
 
32.
 
Risk
 
management
 
policies
 
and
 
disclosures
 
................................
................................
................................
........................
 
84
 
33.
 
Related
 
parties
 
................................
................................
................................
................................
................................
.
 
102
 
34.
 
Group
 
entities
................................
................................
................................
................................
................................
...
 
103
 
35.
 
Litigations
 
and
 
claims
 
................................
................................
................................
................................
......................
 
106
 
36.
 
Subsequent
 
events
 
................................
................................
................................
................................
............................
 
107
 
Appendix 1 – Business combinations 
................................................................ 
................................................................ 
............. 
108 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
3 
Consolidated statement of comprehensive income 
For the period from 1 January to 31 December 2020 and 2019 
Note 
2020 
2019 
In millions of EUR (“MEUR”) 
Sales 
7 
3,187
3,467
Gain (loss) from commodity derivatives for trading with electricity and gas, net 
8
9
Total sales 
3,195
3,476
Cost of sales 
8 
(1,217)
(1,503)
Cost of sales 
(1,217)
(1,503)
Subtotal 
1,978
1,973
Personnel expenses 
9 
(239)
(240)
Depreciation and amortization 
16, 17 
(460)
(403)
Repairs and maintenance 
(18)
(15)
Emission rights, net 
10 
(72)
(41)
Taxes and charges 
11 
(9)
(9)
Other operating income 
12 
59
56
Other operating expenses 
13 
(112)
(149)
Own work, capitalized 
35
36
Profit/(loss) from operations 
1,162
1,208
Finance income 
14 
5
20
Finance expense 
14 
(154)
(140)
Profit/(loss) from financial instruments 
14 
(39)
(4)
Net finance expense 
(188)
(124)
Share of profit of equity accounted investees, net of tax 
1
1
Gain/(loss) on disposal of subsidiaries, special purpose entities, joint ventures and 
associates 
6 
784
-
Profit/(loss) before income tax 
1,759
1,085
Income tax expenses 
15 
(265)
(295)
Profit (loss) for the year 
1,494
790
Items that are not reclassified subsequently to profit or loss 
Revaluation of property, plant and equipment 
3(a) 
1,315
1,615
Items that are or may be reclassified subsequently to profit or loss 
Foreign currency translation differences for foreign operations, net of tax 
15 
70
(43)
Foreign currency translation differences from presentation currency 
15 
(52)
28
Effective portion of changes in fair value of cash-flow hedges 
15 
(22)
(37)
Other comprehensive income for the year, net of tax 
1,311
1,563
Total comprehensive income for the year 
2,805
2,353
Profit/(loss) attributable to: 
Owners of the Company 
1,111
401
Non-controlling interest 
24 
383
389
Profit/(loss) for the year from continuing operations 
1,494
790
Total comprehensive income attributable to: 
Owners of the Company 
1,787
1,123
Non-controlling interest 
1,018
1,230
Total comprehensive income for the year 
2,805
2,353
Earnings per share in EUR 
23 
3.44
1.24
The notes presented on pages 9 to 109 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 2020 
4 
Consolidated statement of financial position 
As at 31 December 2020 
Note 
31 December 2020 
31 December 2019 
In millions of EUR (“MEUR”) 
Assets 
Property, plant and equipment 
16 
10,047
8,791
Intangible assets 
17 
103
132
Goodwill 
17 
99
102
Equity accounted investees 
3
3
Restricted cash 
2
1
Financial instruments and other financial assets 
28 
38
15
Trade receivables and other assets 
20 
31
39
Prepayments and other deferrals 
3
2
Deferred tax assets 
18 
17
17
Total non 
-current assets 
10,343
9,102
Inventories 
19 
184
202
Financial instruments and other financial assets 
28 
38
70
Trade receivables and other assets 
20 
330
428
Contract assets 
7 
54
59
Prepayments and other deferrals 
10
10
Current income tax receivable 
2
11
Cash and cash equivalents 
21 
709
674
Restricted cash 
1
3
Total current assets 
1,328
1,457
Total assets 
11,671
10,559
Equity 
Share capital 
22 
2,988
2,988
Share premium 
8
8
Reserves 
22 
(2,571)
(3,226)
Retained earnings 
644
641
Total equity attributable to equity holders 
1,069
411
Non-controlling interest 
24 
3,012
2,371
Total equity 
4,081
2,782
Liabilities 
Loans and borrowings 
25 
3,926
4,105
Financial instruments and financial liabilities 
28 
134
161
Provisions 
26 
247
239
Deferred income 
27 
85
88
Contract liabilities 
7 
115
105
Deferred tax liabilities 
18 
1,831
1,478
Trade payables and other liabilities 
29 
4
7
Total non 
-current liabilities 
6,342
6,183
Trade payables and other liabilities 
29 
320
373
Contract liabilities 
7 
70
62
Loans and borrowings 
25 
616
902
Financial instruments and financial liabilities 
28 
97
44
Provisions 
26 
73
83
Deferred income 
27 
24
25
Current income tax liability 
15 
48
105
Total current 
liabilities 
1,248
1,594
Total liabilities 
7,590
7,777
Total equity and liabilities 
11,671
10,559
The notes presented on pages 9 to 109 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 2020 
5 
Consolidated statement of changes in equity
For the year ended 31 December 2020 
In millions of EUR (“MEUR”) 
Share capital 
Share 
premium 
Non-
distributable 
reserve 
Translatio
n reserve 
Fair value 
reserve 
Other 
capital 
reserves 
Hedging 
reserve 
Retained 
earnings 
Total 
Non-
controlling 
interest 
Total 
Equity 
Balance at 1 January 2020 (A) 
2,988
8
1
(87)
774
(3,814)
(100)
641
411
2,371
2,782
Total comprehensive income for the year: 
Profit or loss (B) 
-
-
-
-
-
-
-
1,111
1,111
383
1,494
Other comprehensive income: 
Foreign currency translation differences for foreign operations 
15 
-
-
-
17
-
-
-
-
17
53
70
Foreign currency translation differences from presentation currency 
15 
-
-
-
8
-
-
-
-
8
(60)
(52)
Fair value reserve included in other comprehensive income, 
net of tax 
3(a) 
-
-
-
-
643
-
-
643
672
1,315
Effective portion of changes in fair value of cash-flow hedges, net 
of 
tax 
15 
-
-
-
-
-
-
8
-
8
(30)
(22)
Total other comprehensive income (C) 
-
-
-
25
643
-
8
-
676
635
1,311
Total comprehensive income for the year (D) = (B + C) 
-
-
-
25
643
-
8
1,111
1,787
1,018
2,805
Contributions by and distributions to owners: 
Transfer from non-distributable reserves 
-
-
-
-
(40)
-
-
40
-
-
-
Dividends to equity holders 
22 
-
-
-
-
-
-
-
(1,128)
(1,128)
(374)
(1,502)
Total contributions by and distributions to owners
 
(E)
-
-
-
-
(40)
-
-
(1,088)
(1,128)
(374)
(1,502)
Changes in ownership interests in subsidiaries that do not result in loss 
of control: 
Effect of changes in shareholdings on non-controlling interests 
6 
-
-
-
-
-
-
-
(1)
(1)
-
(1)
Effect of disposed entities 
6 
-
-
-
29
-
-
(10)
(19)
-
(4)
(4)
Effect of acquisitions through business combinations 
6 
-
-
-
-
-
-
-
-
-
1
1
Total changes in ownership interests in subsidiaries 
(F)
-
-
-
29
-
-
(10)
(20)
(1)
(3)
(4)
Total transactions with owners 
(G) = (E + F)
-
-
-
29
(40)
-
(10)
(1,108)
(1,129)
(377)
(1,506)
Balance at 31 December 2020 (H) = (A + D + G) 
2,988
8
1
(33)
1,377
(3,814)
(102)
644
1,069
3,012
4,081
The notes presented on pages 9 to 109 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 2020 
6 
Consolidated statement of changes in equity
For the year ended 31 December 2019 
In millions of EUR (“MEUR”) 
Share 
capital 
Share 
premium 
Non-
distributable 
reserve 
Translatio
n reserve 
Revaluatio
n reserve 
Other 
capital 
reserves 
Hedging 
reserve 
Retained 
earnings 
Total 
Non-
controlling 
interest 
Total Equity 
Balance at 1 January 2019 (A) 
2,988
8
1
(71)
(1)
(3,814)
(47)
675
(261)
1,495
1,234
Adjustment on initial application of IFRS 16 (net of tax) 
-
-
-
-
-
-
-
(1)
(1)
-
(1)
Adjusted balance at the beginning of the period 
2,988
8
1
(71)
(1)
(3,814)
(47)
674
(262)
1,495
1,233
Total comprehensive income for the year: 
Profit or loss (B) 
-
-
-
-
-
-
-
401
401
389
790
Other comprehensive income: 
Foreign currency translation differences for foreign operations 
15, 22 
-
-
-
(18)
-
-
-
-
(18)
(25)
(43)
Foreign currency translation differences from presentation currency 
15, 22 
-
-
-
2
-
-
-
-
2
26
28
Fair value reserve included in other comprehensive income, 
net of tax 
15, 22 
-
-
-
-
791
-
-
-
791
824
1,615
Effective portion of changes in fair value of cash-flow hedges, net 
of 
tax 
15, 22 
-
-
-
-
-
-
(53)
-
(53)
16
(37)
Total other comprehensive income (C) 
-
-
-
(16)
791
-
(53)
-
722
841
1,563
Total comprehensive income for the year (D) = (B + C) 
-
-
-
(16)
791
-
(53)
401
1,123
1,230
2,353
Contributions by and distributions to owners: 
Transfer to non-distributable reserves 
-
-
-
-
(16)
-
-
16
-
-
-
Dividends to equity holders 
23 
-
-
-
-
-
-
(450)
(450)
(354)
(804)
Total contributions by and distributions to owners 
(E)
-
-
-
-
(16)
-
-
(434)
(450)
(354)
(804)
Changes in ownership interests in subsidiaries: 
Effect of changes in shareholdings on non-controlling interests 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Effect of acquisitions through business combinations 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Total changes in ownership interests in subsidiaries 
(F)
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Total transactions with owners 
(G) = (E + F)
-
-
-
-
(16)
-
-
(434)
(450)
(354)
(804)
Balance at 31 December 2019 (H) = (A + D + G) 
2,988
8
1
(87)
774
(3,814)
(100)
641
411
2,371
2,782
The notes presented on pages 9 to 109 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 2020 
7 
Consolidated statement of cash flow 
For the year ended 31 December 2020 
Note 
2020 
2019 
In millions of EUR ("MEUR") 
OPERATING ACTIVITIES 
Profit (loss) for the period 
1,494
790
Adjustments for: 
Income taxes 
15 
265
295
Depreciation and amortization 
16, 17 
460
403
Dividend income 
14 
(3)
(2)
Impairment losses on property, plant and equipment 
and intangible assets 
13 
(2)
45
Non-cash (gain) loss from commodity derivatives for trading with electricity and 
gas, net 
(2)
(9)
Gain / Loss on disposal of property, plant and equipment, 
investment property and 
intangible assets 
12 
2
(1)
Emission rights 
10 
72
41
Share of profit of equity accounted investees 
(1)
(1)
Gain on disposal of subsidiaries, special purpose entities, joint ventures, associates 
and non-controlling interests 
(784)
-
Gain / Loss on financial instruments 
14 
39
4
Interest expense, net 
14 
111
134
Change in allowance for impairment to trade receivables and other assets, write-offs 
13 
(1)
3
Change in provisions 
(3)
(10)
Other finance fees, net 
14 
14
4
Other non-cash transactions 
9
-
Unrealized foreign exchange gains/(losses), net 
17
(22)
Operating profit before changes in working capital 
1,687
1,674
Change in trade receivables and other assets 
(2)
(79)
Change in inventories 
8
(2)
Change in trade payables and other liabilities 
126
26
Change in restricted cash 
(3)
1
Cash generated from (used in) operations 
1,816
1,620
Interest paid 
(131)
(128)
Income taxes paid 
(382)
(228)
Cash flows generated from (used in) operating activities 
1,303
1,264
INVESTING ACTIVITIES 
Received dividends 
3
2
Loans provided to the other entities 
(30)
(3)
Proceeds (outflows) from sale (settlement) of financial instruments 
15
5
Acquisition of property, plant and equipment, investment 
property and intangible assets 
16, 17 
(209)
(220)
Purchase of emission rights 
17 
(53)
(54)
Proceeds from sale of emission rights 
2
7
Proceeds from sale of property, plant and equipment, 
investment property and other 
intangible assets 
-
3
Acquisition of associates and joint ventures 
6 
-
(1)
Acquisition of subsidiaries and special purpose entities, net of cash acquired 
6 
1
-
Net cash inflow from disposal of subsidiaries and special purpose entities 
965
-
Increase in participation in existing subsidiaries, special purpose entities, joint-ventures 
and associates. 
6 
(1)
-
Interest received 
1
-
Cash flows from (used in) investing activities 
694
(261)

Consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
8 
Consolidated statement of cash flow (continuing) 
For the year ended 31 December 2020 
Note 
2020 
2019 
In millions of EUR ("MEUR") 
FINANCING ACTIVITIES 
Proceeds from loans received 
25 
807
1,056
Repayment of borrowings 
25 
(996)
(1,612)
Proceeds from bonds issued 
25 
500
1,170
Repayment of bonds issued 
25 
(750)
(499)
Finance fees paid from repayment of borrowings and bond issue 
(4)
(13)
Payment of lease liability 
31 
(14)
(13)
Loans provided to non-controlling shareholders as a prepayment for a dividend 
(270)
(340)
Dividends paid 
(1,234)
(494)
Cash flows from (used in) financing activities 
(1,961)
(745)
Net increase (decrease) in cash and 
cash equivalents 
36
258
Cash and cash equivalents at beginning of the year 
674
416
Effect of exchange rate fluctuations on cash held 
(1)
-
Cash and cash equivalents at end of the year 
709
674
The notes presented on pages 9 to 109 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 2020 
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 2020 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 
34 – Group entities. 
The shareholders 
of the Company as at 31 December 2020 and 31 December 2019 were as 
follows: 
Interest in share capital 
Voting rights 
MEUR 
% 
% 
EPIF Investments a.s. 
2,062 
69.00 
69.00 
CEI INVESTMENTS S.a.r.l. 
926 
31.00 
31.00 
Total 
 
2,988 
 
100.00 
 
100.00 
 
The members of the Board of Directors as at 31 December 2020 were: 
●
 
Daniel Křetínský (Chairman of the Board of Directors) 
●
 
Jiří Zrůst (Vice-chairman of the Board of Directors) 
●
 
Gary Wheatley Mazzotti (Vice-chairman of the Board of Directors) 
●
 
Stéphane Louis Brimont (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) 
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 2020 
10 
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 31 March 2021. 
(b)
 
Basis of measurement 
This 
is 
the 
first 
set 
of 
the 
Group’s 
financial 
statements 
where 
IFRS 
16 
have 
been 
applied. 
Changes 
to 
significant accounting policies are described in Note 2(f) – Recently 
issued accounting standards. 
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 at revalued amounts; 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)
 
COVID-19 related disclosures 
Due 
to 
the 
coronavirus 
(“COVID-19”) outbreak 
in 
2020, 
the 
Czech Republic
 
and 
Slovakia, 
like 
other 
countries 
in 
Europe 
and 
worldwide, 
introduced 
quarantine 
and 
other 
restrictive 
measures 
intended 
to 
prevent the spread of COVID-19. These restrictive measures have 
led to serious interruptions in business, 
economic and day-to-day 
activities in the 
countries in which 
the EPIF Group 
operates, affecting, 
among 
other things, manufacturing, 
trade, consumer confidence, 
levels of unemployment, 
the housing market, 
the 
commercial real 
estate sector, 
debt and 
equity markets, 
counterparty risk, 
inflation, the 
availability and 
cost 
of 
credit, transaction 
volumes in 
wholesale and 
retail markets, 
the liquidity 
of 
the 
global financial 
markets 
and 
market 
interest 
rates. 
These 
factors 
have 
resulted 
in 
a 
widespread 
deterioration 
in 
the 
economies of these countries. 
In 
2020, 
the 
EPIF 
Group’s 
operations 
have 
proven 
to 
be 
significantly 
resilient 
as 
the 
abovementioned 
COVID-19 impacts 
have had 
a limited 
adverse effect 
on the 
EPIF Group’s 
financial performance. 
The 
operational stability 
was primarily 
driven by 
the fact 
that the 
EPIF Group’s 
revenues largely 
depend on 
already 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. 
(d)
 
Functional and presentation currency 
The consolidated financial statements are presented 
in Euro (“EUR”). The Company’s functional currency 
is the Czech crown (“CZK”). All financial information presented in Euros has been rounded to the nearest 
million. The reason for the 
presentation currency is that by 
currency, EPIF Group 
revenues and operating 
profit generated in Euro represent a significant share of the total revenues 
and operating profit. 
(e)
 
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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
11 
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, 
16 and 
17 – 
Accounting for 
business combinations, 
recognition of 
goodwill/negative 
goodwill, impairment testing of property, plant and equipment and goodwill; 
●
 
Note 7 – revenues; 
●
 
Note 16 – measurement of gas transmission and gas distribution pipelines 
at revalued amounts; 
●
 
Note 26 – Recognition and measurement of provisions; 
●
 
Notes 25, 28 and 32 – Valuation of loans and borrowings and financial instruments; 
●
 
Note 35 – Litigations. 
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. 
 
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
12 
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
 
17
 
–
 
accounting
 
for
 
business
 
combinations,
 
recognition
 
of
 
goodwill/negative
 
goodwill, impairment testing of goodwill, 
●
 
Note 7 – judgements relating to recognition of revenues from customers; 
●
 
Note 16 
– 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 24 – information relating to assessment of the control over 
the subsidiaries 
●
 
Note
 
2
6
 
–
 
measurement
 
of
 
defined
 
benefit
 
obligations,
 
recognition
 
and
 
measurement
 
of
 
provisions; 
(f)
 
Recently issued accounting standards 
i.
 
Newly adopted Standards, Amendments to standards and Interpretations 
effective for the year 
ended 31 December 2020 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 2020 
and that 
have thus 
been applied 
by the 
Group for 
the first 
time. 
Amendments to References to 
the Conceptual Framework in 
IFRS Standards (Effective for annual 
periods beginning on or after 1 January 2020) 
Amendments to References 
to the Conceptual Framework 
in IFRS Standards sets 
out amendments to IFRS 
Standards, their accompanying documents and IFRS practice 
statements to reflect the issue 
of the revised 
Conceptual Framework for Financial Reporting in 2018. 
Some 
Standards, their 
accompanying documents 
and IFRS 
practice 
statements contain 
references to, 
or 
quotations 
from, 
the 
IASC’s 
Framework 
for 
the 
Preparation 
and 
Presentation 
of 
Financial 
Statements 
adopted by the 
Board in 2001 (Framework) 
or the Conceptual Framework 
for Financial Reporting issued 
in 
2010. 
Amendments 
updates 
some 
of 
those 
references 
and 
quotations 
so 
that 
they 
refer 
to 
the 
2018 
Conceptual
 
Framework
 
and
 
makes
 
other
 
amendments
 
to
 
clarify
 
which
 
versi
on
 
of
 
the
 
Conceptual
 
Framework is referred to in particular documents. 
The amendments have no material impact on the Group’s financial statements. 
Amendment to IFRS 3 – Definition of a Business (Effective for annual periods beginning on or after 
1 January 2020) 
The amendment 
is aimed 
at resolving the 
difficulties that 
arise when 
an entity 
determines whether it 
has 
acquired a business or a group of assets. The amended definition of business 
emphasises that the output of 
a business 
is to provide 
goods and 
services to 
customers, whereas 
the previous definition 
focused on 
returns 
in 
the form 
of dividends, 
lower costs 
or other 
economic benefits 
to 
investors and 
others. Moreover, 
the 
amendment adds a supplementary guidance and an optional concentration 
test. 
The amendment has no material impact on the Group’s financial statements. 
Amendments to IAS 1 and IAS 8 – Definition of 
Material (Effective for annual periods beginning on 
or after 1 January 2020) 
The amendment clarifies the definition of “material” and ensures 
that the definition is consistent across all 
IFRS 
Standards. 
The 
amended 
definition 
states, 
that 
information 
is 
material 
if 
omitting, 
misstating 
or 
obscuring it could 
reasonably be expected 
to influence 
the decision 
that the 
primary users 
make on the 
basis 
of those financial statements, which provide financial information about a 
specific reporting entity. 
The
 
amendments
 
have
 
no
 
material
 
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 2020 
13 
Amendments to IFRS 
9, IAS 39 
and IFRS 7 
– Interest Rate 
Benchmark Reform (Effective 
for annual 
periods beginning on or after 1 January 2020) 
The 
amendments modify 
some 
specific 
hedge 
accounting 
requirements 
to 
provide 
relief 
from 
potential 
effects 
of 
the uncertainty 
caused by 
the IBOR 
reform related 
to 
reference rates 
used 
as 
benchmarks for 
variable-interest rate 
instruments 
(interest-rate benchmarks 
such as 
interbank offered 
rates, mainly 
LIBOR). 
In addition, the 
amendments require companies to 
provide additional information to 
investors about their 
hedging 
relationship which 
are 
directly affected 
by these 
uncertainties. The 
amendments also 
deal 
with 
issues of replacement 
of an existing 
interest rate benchmark 
with an alternative 
interest rate and 
address the 
implications for specific hedge accounting requirements. There are also requirements regarding additional 
disclosures around uncertainty arising from the interest rate benchmark 
reform. 
The amendments have no material impact on the Group’s financial statements. The Group has no material 
financial instruments with variable interest rates based on the reformed reference 
rates. 
ii.
 
Standards not yet effective 
At the date of authorisation of these 
consolidated financial statements, the 
following significant Standards, 
Amendments 
to 
Standards 
and 
Interpretations 
have 
been 
issued 
but 
are 
not 
yet 
effective 
for 
the 
period 
ended 31 December 2020 and thus 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 
(not 
adopted 
by 
EU 
yet)), 
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 it is expected that the Standard 
will have no impact on 
the Group’s financial statements. 
Amendments to IAS 1 – Classification of Liabilities 
as Current or Non-current (Effective for annual 
reporting periods beginning on or after 1 January 2023 (not adopted by EU yet)) 
The amendment 
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 Group is currently reviewing possible impact of the amendments 
to its financial statements. 
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 (not adopted by EU yet)) 
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. 
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 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
14 
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 are not expected to have any material impact on the Group’s financial statements. 
Amendment to 
IFRS 16 
– Covid 
19-Related Rent 
Concessions (Effective 
for annual 
reporting periods 
beginning on or after 1 July 2020) 
The amendment permits lessees, as a practical expedient, not to assess whether particular 
rent concessions 
occurring as a direct consequence of 
the covid-19 pandemic are lease modifications 
and instead to account 
for those rent concessions as if they are not lease modifications. The 
amendment does not affect lessors. 
The amendment is not expected to have any material impact on the Group’s financial statements. 
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
 
– Interest Rate Benchmark Reform – 
Phase 2 (Effective for annual periods 
beginning on or after 1 January 
2021 (not adopted by EU yet)) 
The amendments 
relate to 
modification of 
financial assets, 
financial liabilities 
and lease 
liabilities (practical 
expedient 
for 
modifications 
required 
by 
the 
reform), 
specific 
hedge 
accounting 
requirements 
(hedge 
accounting 
is 
not 
discontinued 
solely 
because 
of 
the 
IBOR 
reform, 
hedging 
relationship 
and 
related 
documentation
 
must
 
be
 
amended),
 
and
 
discl
osure
 
requirements
 
applying
 
IFRS
 
7
 
to
 
accompany
 
the
 
amendments. 
The amendments are not expected to have any material impact on the Group’s 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.
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
15 
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(f) 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 
Revaluation model for property, plant and equipment 
The Group decided 
to change its 
accounting policy 
relating to reporting 
of gas distribution 
pipelines of SPP 
- distribúcia, a.s. (“SPPD”) starting 1 January 
2020. Similarly gas 
transmission pipelines of eustream, a.s. 
are 
reported 
under 
revaluation 
model 
since 
1 
January 
2019. 
Per 
the 
new 
accounting 
policy, 
the 
gas 
distribution pipelines shall be following the IAS 16 Revaluation model where the relevant fixed assets are 
carried at a revalued 
amount, being its fair 
value at the date 
of revaluation less 
subsequent depreciation and 
impairment. Under the old 
accounting policy, the gas distribution pipelines 
were reported using the 
IAS 16 
Cost 
model 
where 
the 
relevant 
fixed 
assets 
were 
carried 
at 
cost 
less 
accumulated 
depreciation 
and 
impairment. The Group decided to change its accounting policy in relation to its gas distribution pipelines 
because
 
it
 
believes
 
that
 
it
 
will
 
result
 
in
 
consolidated
 
financial
 
statements
 
providing
 
more
 
relevant
 
information about the gas 
transmission and gas distribution 
pipelines, which is one 
of the major fixed asset 
groups in the EPIF Group, to users of financial statements. 
Gas distribution pipelines create 
a separate class of 
assets with distinct 
characteristics which differentiate 
the distribution network from 
other gas networks (such 
as gas transmission 
network) the Group operates. 
These characteristics among others are: 
●
 
Transmission 
pipelines, owned 
and operated 
by eustream, 
a.s., are 
all made 
of steel 
and operate 
under high pressure whereas the 
gas distribution network pipelines, 
owned and operated by SPPD, 
are made of 
combination of steel 
and polyethylene while 
the vast majority 
of the gas 
networks runs 
under low pressure; 
●
 
SPPD owns over 33 thousand kilometres of gas distribution network. The difference is also in the 
number of pressure regulation stations 
– eustream operates just 5 
while SPPD needs 1,732 
of them 
to keep the gas distribution network functioning; 
●
 
SPPD
 
provides
 
gas
 
distribution
 
to
 
end
-
consumers
 
under
 
standard
 
framework
 
distribution
 
agreements 
(with 
tariffs 
established 
by 
the 
regulator 
based 
on 
standard 
Regulatory 
asset 
base 
(“RAB”) based regulatory formula) entered into with natural gas suppliers. 
As of the end of 2020, 
SPPD has standard framework distribution agreements in place with 31 natural gas suppliers with 
five major suppliers (SPP, 
innogy, 
MET Slovakia, ZSE energia, 
and Stredoslovenská energetika) 
holding over 84 per cent. of the market share and contributing 84 per cent. of SPPD´s annual total 
revenue in 2020. 
It is 
to note 
that the 
gas distribution 
assets have 
already been 
reported in 
the local 
statutory accounts 
of 
SPPD using the IAS 16 Revaluation model. 
The other fixed assets of the 
EPIF Group (incl. SPPD’s 
fixed 
assets other than distribution pipeline assets) 
will be still reported using IAS 16 
Cost model, but the Group 
cannot exclude that it will in the future change the accounting policy for 
other critical fixed assets as well.
 
As 
of 
1 
January 
2020, SPPD’s 
distribution pipeline 
system 
had a 
carrying 
value of 
EUR 2,051 
million 
under 
the 
Cost 
model 
and 
EUR 
3,813 
million 
under 
the 
Revaluation 
model. 
Revaluation 
of 
assets 
was 
recorded 
without 
effect 
on 
prior 
periods. 
The 
difference 
of 
EUR 
1,762 
million 
with 
a 
corresponding 
deferred tax impact of EUR 447 million 
was recognized as a current period revaluation under IAS 16 
and 
reported 
in 
other 
comprehensive 
income 
for 
the 
period. 
In 
subsequent 
revaluation, 
the 
changes 
will 
be 
recognised as follows: 
●
 
An 
increase 
in 
revalued 
amount 
is 
recognised 
in 
other 
comprehensive 
income. 
The 
increase 
is 
recognised in 
profit or 
loss to 
the extent 
that it 
reverses a 
revaluation decrease 
of the 
same asset 
previously recognised in profit or loss. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
16 
●
 
A decrease in revalued amount primarily decreases amount 
accumulated as revaluation surplus in 
equity; eventual remaining part of decrease in revalued amount is recognised 
in profit or loss. 
●
 
Accumulated depreciation is eliminated against gross carrying amount 
of the asset. 
Deferred tax asset or 
liability is recognised from 
the difference between 
revalued amount and tax 
base of 
an asset. 
Deferred tax 
is recognized 
in equity 
or in 
profit or 
loss, in 
the same 
manner as 
the revaluation 
itself. 
Revalued asset is depreciated 
on a straight-line basis, 
revaluation surplus is 
released to retained earnings 
as 
the asset is depreciated. If the revalued asset 
is derecognised or sold, the revaluation surplus as 
a whole is 
transferred 
to 
retained 
earnings. 
These 
transfers 
are 
made 
directly 
in 
equity 
and 
do 
not 
affect 
other 
comprehensive income. 
(b)
 
Basis of consolidation 
i.
 
Subsidiaries 
Subsidiaries are entities controlled by the 
Company. Control exists when the 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
 
combinat
ion
 
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. 
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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
17 
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 
contributions of subsidiaries, 
special purpose entities, 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. 
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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
18 
(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
 
economi
c
 
environment
 
in
 
which
 
the
 
entity
 
operates
 
(the
 
functional
 
currency).
 
The
 
consolidated 
financial 
statements 
are 
presented 
in 
Euro, 
which 
is 
the 
Group’s 
presentation 
currency. 
Company’s 
functional currency 
is Czech 
crown. Transactions 
in 
foreign currencies 
are translated 
to 
the 
respective functional currencies of Group entities at the foreign exchange 
rate at the transaction date. 
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 32 
– Risk management policies and disclosures. 
ii.
 
Translation to presentation currency 
These consolidated financial statements are presented in Euro which is the Group’s presentation currency. 
The process of translation into presentation currency is performed into two 
steps. 
Consolidated financial statements are first 
prepared in Czech crowns. 
The assets and liabilities 
of foreign 
operations, including 
goodwill and 
fair value 
adjustments arising 
on consolidation, 
are translated 
into Czech 
crowns at foreign exchange rates at the reporting date. The income and expenses of foreign operations are 
translated into Czech crowns using a foreign exchange rate that approximates the foreign exchange rate at 
the date of the transaction. For significant transactions the exact foreign exchange 
rate is used. 
The consolidated 
financial statements 
are then 
translated into 
Euros. The 
assets and 
liabilities, including 
goodwill and fair value adjustments arising on consolidation, 
are translated from Czech crowns into Euros 
at foreign exchange rate at the reporting date. The income and expenses are translated from Czech crowns 
into 
Euros 
using a 
foreign exchange 
rate that 
approximates the 
foreign exchange 
rate at 
the 
date of 
the 
transaction. 
Foreign 
exchange 
differences 
arising 
on 
translation 
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 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
19 
●
 
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”). 
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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
20 
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. 
Financial assets at amortized cost are subsequently 
measured at amortized 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 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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
21 
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. 
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 
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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
22 
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. 
(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 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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
23 
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
 
separatel
y.
 
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. 
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). 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
24 
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 
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. 
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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
25 
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 
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 pipelines 
30 – 70 years 
●
 
Machinery, electric generators, gas 
producers,
 
turbines
 
and
 
drums
 
 
20 – 30 years 
●
 
Distribution
 
network
 
 
10 – 30 years 
●
 
Machinery and equipment 
4 – 20 years 
●
 
Fixtures, fittings and others 
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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
26 
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 
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 2020 and 
2019, 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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
27 
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. 
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 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
28 
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 
obligation). It is 
in general be 
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 
in 
and 
gas 
storage 
facilities 
and 
coal 
mines 
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
 
proper
ty,
 
plant
 
and
 
equipment
 
are
 
recognised in connection with the initial recognition of the 
related assets, provided that the obligation can 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
29 
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. 
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; 
●
 
rehabilitating mines and tailings dams; 
●
 
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 mining 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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
30 
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. 
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 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
31 
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 
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 
– Sales, 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 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
32 
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
 
g
as
 
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 
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. For the purposes of Group 
reporting, where trading with commodity 
derivatives 
forms 
a 
significant 
part 
of 
the 
Group’s 
total 
trading 
activities, 
the 
measurement 
effect 
is 
recognised in 
“Gain (loss) 
from commodity 
derivatives for 
trading with 
electricity, 
gas, net”, 
a separate 
line 
item 
under 
“Total 
sales” 
for 
commodity 
derivatives 
with 
electricity, 
gas, 
coal 
and 
freight. 
The 
measurement 
effect 
for 
commodity derivatives 
with emission 
rights 
is 
included 
in 
line 
item 
“Emission 
rights, net”. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
33 
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. 
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. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
34 
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 
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. 
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
35 
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 
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, 
changes 
in 
technology 
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 16 – 
Property, plant and equipment. 
 
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
36 
(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, 
held-to-maturity 
investments 
and 
available-for-sale financial 
assets 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 
held-to-maturity 
investments 
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 
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. 
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
37 
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 Gas 
transmission, 
Gas and power 
distribution, Gas 
storage and 
Heat 
Infra mainly based 
on nature of 
the services 
provided. For description 
of each segment 
see text below. 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
 
(“EBITDA”) and capital expenditures. 
i.
 
Gas transmission 
The 
Group 
transports 
the 
natural 
gas 
(with 
the 
conditions 
ship 
or 
pay) 
through 
the 
Slovak 
Republic 
primarily 
based 
on 
a 
long-term 
contract 
concluded 
with 
a 
gas 
supplier 
located 
in 
Russia. 
The 
contract 
entitles this 
gas supplier 
to use 
the gas 
pipelines in 
accordance with 
a transport 
capacity needed 
for the 
transportation 
of 
natural 
gas 
to 
the 
customers 
in 
central 
and 
Western 
Europe. 
The 
Group 
assessed 
the 
contractual conditions in the 
ship-or-pay arrangement and concluded 
that the arrangement does 
not include 
a derivative as the contract does not give flexibility to the Group that always has to provide its capacity to 
the customer. Revenue is recognised based on the contract (fixed 
element) and based on actual transmitted 
volume which drives the amount of gas-in-kind received from the shippers 
(see below). 
eustream, 
a.s. 
provides 
access 
to 
the 
transmission 
network 
and 
transport 
services 
under 
this 
long-term 
contract. The 
most significant 
user (shipper) 
of this 
network is 
the gas 
supplier located 
in 
Russia, other 
clients are 
typically significant 
European gas 
companies transporting 
natural gas 
from Russia 
and Asian 
sites to Europe. 
The 
largest 
part 
of 
the 
transmission 
capacity 
is 
used 
based 
on 
the 
long-term 
contracts. 
Furthermore 
eustream, a.s. also concludes short term transportation contracts within 
the entry-exit system. 
Transportation charges shall be reimbursed by 
the appropriate shipper directly 
to eustream, a.s. Since 
2005 
charges are fully 
regulated by Energy Regulatory 
Authority (“RONI”). The 
regulatory framework provides 
a 
stable 
and 
sustainable 
environment 
for 
the 
transmission 
business. 
The 
price 
regulation 
is 
based 
on 
benchmarking 
mechanism 
(price 
cap 
without 
a 
revenue 
ceiling), 
tariff 
is 
set 
on 
a 
basis 
of 
other 
EU 
operators, which create a 
range in which RONI 
sets a tariff. 
Once a contract 
is concluded it is 
fixed for a 
lifetime of the contract. 
According to the 
regulated trade and 
price conditions the 
shipper provides part 
of charges in kind 
of natural 
gas used for operating purposes to cover the consumption of gas in the transmission network operation. In 
accordance with the regulated trade 
and price conditions the shipper 
is entitled to pay 
this part of charges 
also in cash. 
Because of the contractual nature of the shipping arrangement with the Russian gas supplier, management 
carefully assessed the contractual 
conditions with the view of 
whether the contract includes 
any significant 
lease arrangement as 
per IFRS 16. 
As there is 
no indication that 
the Russian gas 
supplier 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 
fixed assets 
and the 
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 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-

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
38 
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”), 
and EP ENERGY TRADING, a.s. 
The subsidiary 
companies SPPD 
and SSD, 
which provide 
distribution of 
natural gas 
and power, 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 (current regulatory 
period is 2017 – 2021 and is expected to be extended until 2022). 
Sales of 
natural gas 
to medium 
and large 
customers are 
subject to 
contracts for 
the delivery 
of gas 
concluded 
usually for 
one or 
more years. 
The prices 
agreed in 
the contracts 
usually include 
a capacity 
and variable 
components. 
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. 
Price 
of 
electricity 
(the 
commodity) is 
regulated for 
households and 
small business with 
the annual 
consumption up 
to 30 
MWh 
where RONI 
sets a 
capped gross 
profit per MWh. 
The price of 
electricity for the 
wholesale customers is 
not regulated. 
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. 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. 
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 co-
generation power plants 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. 
EP Sourcing, a.s. (former 
EP Coal Trading, a.s.) and EP 
Cargo a.s., as 
main suppliers of the above-mentioned entities, are 
also included in this segment. Pražská teplárenská 
a.s., 
which is operating the largest 
district heating system in the 
Czech Republic, supplying heat to 
the City of 
Prague, and three CHPs in Hungary, 
represented by Budapesti Erömü Zrt., which is supplying the City 
of 
Budapest, were disposed in Q4 2020. 
v.
 
Other 
The Other operations represents mainly three solar power plants, one wind farm and a minority interest in 
an another 
solar power 
plant in 
the Czech 
Republic. The 
Group also 
runs two 
solar power 
plants in 
Slovakia, 
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 2020 
39 
Profit or loss 
For the year ended 31 December 2020 
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 
Sales: Energy 
744 
1,702 
293 
544 
3,283 
5 
- 
(147) 
3,141 
external revenues 
721 
1,696 
261 
458 
3,136 
5 
- 
- 
3,141 
of which: Gas 
721 
580 
261 
- 
1,562 
- 
- 
- 
1,562 
 
Electricity 
- 
1,116 
- 
132 
1,248 
6 
- 
- 
1,254 
 
Heat 
- 
- 
- 
325 
325 
- 
- 
- 
325 
inter-segment revenues 
23 
6 
32 
86 
147 
- 
- 
(147) 
- 
Sales: Logistics and freight servicies 
- 
- 
- 
18 
18 
- 
- 
- 
18 
external revenues 
- 
- 
- 
18 
18 
- 
- 
- 
18 
Inter-segment revenues 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Sales: Other 
- 
7 
- 
16 
23 
6 
- 
(1) 
28 
external revenues 
- 
7 
- 
16 
23 
5 
- 
- 
28 
inter-segment revenues 
- 
- 
- 
- 
- 
1 
- 
(1) 
- 
Gain (loss) from commodity derivatives for 
trading with electricity 
and gas, net 
- 
8 
- 
- 
8 
- 
- 
- 
8 
Total sales 
744 
1,717 
293 
578 
3,332 
11 
- 
(148) 
3,195 
Cost of sales: Energy 
(24) 
(995) 
(33) 
(286) 
(1,338) 
- 
- 
148 
(1,190) 
external cost of sales 
(22) 
(861) 
(25) 
(282) 
(1,190) 
- 
- 
- 
(1,190) 
inter-segment cost of sales 
(2) 
(134) 
(8) 
(4) 
(148) 
- 
- 
148 
- 
Cost of sales: Other 
- 
(1) 
1 
(24) 
(24) 
(3) 
- 
- 
(27) 
external cost of sales 
- 
(1) 
1 
(24) 
(24) 
(3) 
- 
- 
(27) 
inter-segment cost of sales 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Personnel expenses 
(30) 
(108) 
(31) 
(65) 
(234) 
(1) 
(4) 
- 
(239) 
Depreciation and amortisation 
(130) 
(220) 
(31) 
(76) 
(457) 
(3) 
- 
- 
(460) 
Repairs and maintenance 
(1) 
(4) 
- 
(13) 
(18) 
- 
- 
- 
(18) 
Emission rights, net 
(2) 
- 
- 
(70) 
(72) 
- 
- 
- 
(72) 
Taxes and charges 
(1) 
(1) 
(2) 
(4) 
(8) 
- 
(1) 
- 
(9) 
Other operating income 
3 
16 
- 
40 
59 
2 
- 
(2) 
59 
Other operating expenses 
(14) 
(54) 
(10) 
(27) 
(105) 
(5) 
(4) 
2 
(112) 
Own work, capitalized 
3 
21 
- 
11 
35 
- 
- 
- 
35 
Operating profit 
548 
371 
187 
64 
1,170 
1 
(9) 
- 
1,162 
Finance income 
1 
3 
2 
1 
7 
- 
*
924 
*
(926) 
5 
external finance revenues 
1 
2 
1 
- 
4 
- 
1 
- 
5 
inter-segment finance revenues 
- 
1 
1 
1 
3 
- 
*
923 
*
(926) 
- 
Finance expense 
(40) 
(17) 
(6) 
21 
(42) 
- 
(151) 
39 
(154) 
Profit (loss) from derivative financial instruments 
(7) 
2 
- 
2 
(3) 
- 
(40) 
4 
(39) 
Share of profit (loss) of equity accounted 
investees, net of tax 
- 
- 
- 
- 
- 
1 
- 
- 
1 
Gain (loss) on disposal of subsidiaries, special 
purpose entities, joint 
ventures and associates 
- 
- 
- 
79 
79 
- 
705 
- 
784 
Profit (loss) before income tax 
502 
359 
183 
167 
1,211 
2 
*
1,429 
*
(883) 
1,759 
Income tax expenses 
(128) 
(91) 
(43) 
(14) 
(276) 
- 
11 
- 
(265) 
Profit (loss) for the year 
374 
268 
140 
153 
935 
2 
*
1,440 
*
(883) 
1,494 
* 
EUR 883 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: 
EBITDA
(1)
678 
591 
218 
140 
1,627 
4 
(9) 
- 
1,622 
(1) 
EBITDA represents profit from operations plus depreciation of property, plant and equipment and amortisation of intangible 
assets (negative goodwill not included, 
if applicable). For EBITDA reconciliation to the closest 
IFRS measure 
explanation see below. 

 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
40 
Profit or loss 
For the year ended 31 December 2019 
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 
Sales: Energy 
826 
1,880 
253 
653 
3,612 
6 
- 
(181) 
3,437 
external revenues 
794 
1,862 
222 
554 
3,432 
5 
- 
- 
3,437 
of which: Gas 
794 
567 
222 
- 
1,583 
- 
- 
- 
1,583 
 
Electricity 
- 
1,295 
- 
137 
1,432 
5 
- 
- 
1,437 
 
Heat 
- 
- 
- 
391 
391 
- 
- 
- 
391 
inter-segment revenues 
32 
18 
31 
99 
180 
1 
- 
(181) 
- 
Sales: Logistics and freight services 
- 
- 
- 
26 
26 
- 
- 
- 
26 
external revenues 
- 
- 
- 
26 
26 
- 
- 
- 
26 
inter-segment revenues 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Sales: Other 
- 
7 
- 
17 
24 
6 
- 
- 
30 
external revenues 
- 
7 
- 
17 
24 
6 
- 
- 
30 
inter-segment revenues 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Gain (loss) from commodity derivatives 
for trading with electricity 
and gas, net 
- 
9 
- 
- 
9 
- 
- 
- 
9 
Total sales 
826 
1,896 
253 
670 
3,645 
12 
- 
(181) 
3,476 
Cost of sales: Energy 
(48) 
(1,207) 
(29) 
(371) 
(1,655) 
- 
- 
179 
(1,476) 
external cost of sales 
(46) 
(1,045) 
(28) 
(357) 
(1,476) 
- 
- 
- 
(1,476) 
inter-segment cost of sales 
(2) 
(162) 
(1) 
(14) 
(179) 
- 
- 
179 
- 
Cost of sales: Other 
- 
(1) 
(1) 
(21) 
(23) 
(4) 
- 
- 
(27) 
external cost of sales 
- 
(1) 
(1) 
(21) 
(23) 
(4) 
- 
- 
(27) 
inter-segment cost of sales 
- 
- 
- 
- 
- 
- 
- 
- 
- 
Personnel expenses 
(30) 
(104) 
(31) 
(69) 
(234) 
(2) 
(4) 
- 
(240) 
Depreciation and amortisation 
(130) 
(159) 
(29) 
(82) 
(400) 
(3) 
- 
- 
(403) 
Repairs and maintenance 
(1) 
(4) 
- 
(10) 
(15) 
- 
- 
- 
(15) 
Emission rights, net 
- 
- 
- 
(41) 
(41) 
- 
- 
- 
(41) 
Taxes and charges 
(1) 
(1) 
(4) 
(3) 
(9) 
- 
- 
- 
(9) 
Other operating income 
3 
17 
- 
36 
56 
- 
- 
- 
56 
Other operating expenses 
(17) 
(89) 
(14) 
(26) 
(146) 
(2) 
(3) 
2 
(149) 
Own work, capitalized 
4 
20 
1 
10 
35 
- 
1 
- 
36 
Operating profit 
606 
368 
146 
93 
1,213 
1 
(6) 
- 
1,208 
Finance income 
2 
- 
3 
7 
12 
- 
*862 
*(854) 
20 
external finance revenues 
2 
- 
1 
3 
6 
- 
14 
- 
20 
inter-segment finance revenues 
- 
- 
2 
4 
6 
- 
*848 
*(854) 
- 
Finance expense 
(45) 
(18) 
(8) 
(14) 
(85) 
(1) 
(121) 
68 
(140) 
Profit (loss) from derivative financial instruments 
2 
(2) 
(3) 
(7) 
(10) 
- 
(2) 
8 
(4) 
Share of profit (loss) of equity accounted 
investees, net of tax 
- 
- 
- 
- 
- 
1 
- 
- 
1 
Profit (loss) before income tax 
565 
348 
138 
79 
1,130 
1 
*733 
*(779) 
1,055 
Income tax expenses 
(153) 
(87) 
(35) 
16 
(291) 
- 
(4) 
- 
(295) 
Profit (loss) for the year 
412 
261 
103 
63 
839 
1 
*729 
*(779) 
790 
* 
EUR 781 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: 
EBITDA
(1)
736 
527 
175 
175 
1,613 
4 
(6) 
- 
1,611 
(1) 
EBITDA represents profit 
from operations plus depreciation of property, 
plant and equipment and amortisation of intangible assets (negative 
goodwill not included, if applicable). For EBITDA reconciliation 
to the closest IFRS measure explanation see 
below. 

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
41 
EBITDA reconciliation to the closest IFRS measure 
It must be noted that EBITDA is not an indicator that 
is defined under IFRS. This indicator is construed as determined by the 
Board of Directors and is presented 
to disclose 
additional information 
to measure 
the economic 
performance of 
the Group’s 
business activities. 
This term 
should not 
be used 
as a 
substitute to 
net 
income, revenues or operating cash flows or any other indicator as 
derived in accordance with IFRS. This non-IFRS 
indicator should not be used in isolation. This 
indicator may not be comparable to similarly titled indicators used by 
other companies
 
For the year ended 31 December 2020 
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 
Profit from operations 
548 
371 
187 
64 
1,170 
1 
(9) 
- 
1,162 
Depreciation and amortisation 
130 
220 
31 
76 
457 
3 
- 
- 
460 
Negative goodwill 
- 
- 
- 
- 
- 
- 
- 
- 
- 
EBITDA 
678 
591 
218 
140 
1,627 
4 
(9) 
- 
1,622 
For the year ended 31 December 2019 
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 
Profit from operations 
606 
368 
146 
93 
1,213 
1 
(6) 
- 
1,208 
Depreciation and amortisation 
130 
159 
29 
82 
400 
3 
- 
- 
403 
Negative goodwill 
- 
- 
- 
- 
- 
- 
- 
- 
- 
EBITDA 
736 
527 
175 
175 
1,613 
4 
(6) 
- 
1,611 

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
42 
Segment assets and liabilities 
For the year ended 31 December 2020 
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 
4,413 
5,834 
959 
792 
11,998 
30 
1,075 
(1,432) 
11,671 
Reportable segment liabilities 
(2,383) 
(1,963) 
(517) 
(325) 
(5,188) 
(16) 
(3,818) 
1,432 
(7,590) 
Additions to tangible and intangible assets
(1)
45 
88 
9 
133 
275 
- 
- 
- 
275 
Additions to tangible and intangible assets (excl. 
emission rights, right-of-use assets and goodwill) 
40 
86 
9 
74 
209 
- 
- 
- 
209 
Equity accounted investees 
- 
1 
- 
- 
1 
2 
- 
- 
3 
(1) 
This balance includes additions to right of use assets, emission rights and goodwill 
(2) 
Gas distribution pipelines held by Gas and power distribution segment were revalued to their Fair value in 2020 
For the year ended 31 December 2019 
In millions of EUR 
Gas trans-
mission
(2)
Gas and 
power 
distribution 
Gas storage 
Heat Infra 
Total 
reportable 
segments 
Other 
Holding 
Inter-
segment 
eliminations 
Consolidated 
financial 
information 
Reportable segment assets 
4,736 
4,155 
911 
1,232 
11,034 
35 
1,616 
(2,126) 
10,559 
Reportable segment liabilities 
(2,607) 
(1,576) 
(530) 
(465) 
(5,178) 
(34) 
(4,691) 
2,126 
(7,777) 
Additions to tangible and intangible assets
(1)
72 
87 
12 
127 
298 
- 
- 
- 
298 
Additions to tangible and intangible assets (excl. 
emission rights and goodwill) 
69 
82 
11 
58 
220 
- 
- 
- 
220 
Equity accounted investees 
- 
2 
- 
1 
3 
- 
- 
- 
3 
(1) 
This balance includes additions to right of use assets, emission rights and goodwill 
(2) 
Gas transmission pipelines held by Gas transmission segment were revalued to their Fair value in 2019 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
43 
Information about geographical areas
 
In presenting information 
on the basis 
of geography, 
segment revenue is 
based on geographical 
location 
of delivery of goods and services and segment assets are based on the 
geographical location of the assets. 
 
For the year ended 31 December 2020 
In millions of EUR 
Czech 
Republic 
Slovakia 
Germany 
Total 
Property, plant and equipment 
618 
9,261 
168 
10,047 
Intangible assets and goodwill 
168 
34 
- 
202 
Total 
786 
9,295 
168 
10,249 
In millions of EUR 
Czech 
Republic 
Slovakia 
Hungary 
United 
Kingdom 
Germany 
Other* 
Total 
Sales: Gas 
171 
921 
77 
162 
61 
170 
1,562 
Sales: Electricity 
350 
788 
46 
22 
- 
48 
1,254 
Sales: Heat 
265 
- 
60 
- 
- 
- 
325 
Sales: Logistics and freight servicies 
13 
1 
(1) 
- 
- 
5 
18 
Sales: Other 
20 
8 
- 
- 
- 
- 
28 
Gain (loss) from commodity 
derivatives for trading with 
electricity and gas, net 
8 
- 
- 
- 
- 
- 
8 
Total 
827 
1,718 
182 
182 
61 
225 
3,195 
* 
The geographical area “Other” comprises income items primarily from Switzerland and France. 
For the year ended 31 December 2019 
In millions of EUR 
Czech 
Republic 
Slovakia 
Germany 
Hungary 
Total 
Property, plant and equipment 
874 
7,700 
174 
43 
8,791 
Intangible assets and goodwill 
169 
48 
- 
17 
234 
Total 
1,043 
7,748 
174 
60 
9,025 
In millions of EUR 
Czech 
Republic 
Slovakia 
Hungary 
United 
Kingdom 
Germany 
Other* 
Total 
Sales: Gas 
195 
985 
119 
96 
45 
143 
1,583 
Sales: Electricity 
360 
924 
41 
17 
- 
95 
1,437 
Sales: Heat 
314 
- 
77 
- 
- 
- 
391 
Sales: Logistics and freight servicies 
16 
1 
- 
- 
- 
9 
26 
Sales: Other 
22 
8 
- 
- 
- 
- 
30 
Gain (loss) from commodity 
derivatives for trading with 
electricity and gas, net 
9 
- 
- 
- 
- 
- 
9 
Total 
916 
1,918 
237 
113 
45 
247 
3,476 
* 
The geographical area “Other” comprises income items primarily from Switzerland and France. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
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 2020 
On 21 October 2020 the Group via its subsidiary Stredoslovenská distribučná, a.s. acquired 80% share in 
Kinet s.r.o. 
for EUR 3.3 
million. The net 
assets of the 
company at the 
date of acquisition 
were EUR 2.8 
million. 
On 23 October 2020 the Group 
via its subsidiary EP Energy, a.s. acquired 100% 
share in Patamon a.s. for 
almost CZK 2 million. 
During 
2020 
the 
Group 
acquired 
100% 
in 
companies 
Lirostana 
s.r.o., 
Zálesí 
Reality 
s.r.o., 
Malešice 
Reality s.r.o., Power Reality s.r.o., 
EPRE Reality s.r.o. and Střelničná reality s.r.o. 
for total consideration 
of CZK 1.2 million, 
where net assets in total 
value of EUR 99 million 
from Pražská teplárenská a.s. and 
PT měření, a.s. were transferred. 
ii.
 
31 December 2019 
On 
8 
March 
2019 
the 
Group 
via 
its 
subsidiary 
Pražská 
teplárenská, 
a.s. 
acquired 
60.5% 
share 
in 
PT 
Distribuční, s.r.o. (Devátá energetická, 
s.r.o.) for EUR 
0.5 million. No goodwill or negative goodwill 
was 
recognized 
on 
the 
transaction. 
On 
10 
July 
2019 
the 
Group 
acquired 
additional 
24.5% 
share 
and 
total 
ownership of 
the Group 
is 85%. 
The Group 
does 
not control 
the entity 
because it 
does not 
have management 
control and therefore the entity is presented as an associate. 
(b)
 
Effect of acquisitions 
i.
 
31 December 2020 
There were no significant acquisitions or step-acquisitions in 2020 
ii.
 
31 December 2019 
There were no significant acquisitions or step-acquisitions in 2019. 
 
 

 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
45 
Acquisition of non-controlling interest 
On 16 January 2020, 
the EP Energy, a.s. acquired remaining 
36% interest in 
VTE Pchery, s.r.o. Effectively 
the Group increased its shareholding interest in VTE Pchery, s.r.o. from 64% to 100%. 
 
 
(c)
 
Business combinations – acquisition accounting 2020 and 2019 
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. 
There were no significant acquisitions or step-acquisitions in 2020 and 2019. 
(d)
 
Disposal of investments in 2020 and 2019 
i.
 
31 December 2020 
During the year 2020 the Group disposed of its investments in: 
 
In millions of EUR 
Date of 
disposal 
Equity interest 
disposed 
Equity interest 
after disposal 
% 
% 
Subsidiaries disposed 
Pražská teplárenská Holding a.s. v likvidaci and NPTH,a.s. v 
likvidaci 
30/09/2020 
100 
- 
CHIFFON ENTERPRISES LIMITED 
30/09/2020 
100 
- 
Pražská teplárenská a.s. and its subsidiaries and associates and PT 
Transit, a.s. 
03/11/2020 
100 
- 
Budapesti Erõmû Zrt. and Energia-pro Zrt. 
02/12/2020 
95.62 
- 
On 30 September 2020, in connection with the liquidation process of Pražská 
teplárenská Holding a.s. v 
likvidaci and NPTH a.s. v likvidaci the entities were deconsolidated without any 
significant impact on the 
Group’s financial statements. The impact on financial statements was EUR 20 million due to translation 
differences recycled to Other comprehensive income. The investment 
is currently reported under other 
financial assets at value expected to be received upon liquidation. 
On 30 September 2020, in connection with the liquidation process of CHIFFON 
ENTERPRISES 
LIMITED the entity was deconsolidated without any significant impact on 
the Group’s financial 
statements. The impact on financial statements was EUR 1 million. The 
investment is currently reported 
under other financial assets at value expected 
to be received upon liquidation. 
On 3 November 2020, the Group disposed 100% 
in Pražská teplárenská a.s. and its subsidiaries and 
associates and PT Transit, a.s. The effect of disposal is provided in the following table below. 

 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
46 
On 2 December 2020, the Group disposed 95.62% in Budapesti Erőmű Zrt. 
and Energia-pro Zrt. The 
effect of disposal is provided in the following table below. 
The effects of disposals are provided in the following table: 
In millions of EUR 
Net assets sold in 2020 
Property, plant and equipment 
(255) 
Intangible assets 
(8) 
Participation with significant influence 
(1) 
Trade receivables and other assets 
(126) 
Financial instruments - assets 
(6) 
Inventories 
(9) 
Cash and cash equivalents 
(46) 
Restricted cash 
(4) 
Deferred tax asset 
(7) 
Provisions 
26 
Deferred tax liabilities 
31 
Loans and borrowings 
10 
Trade payables and other liabilities 
184 
Net identifiable assets and liabilities 
(211) 
Non-controlling interest 
4 
Pricing differences 
9 
Translation difference recycled to OCI 
(29) 
Net assets value disposed 
(227) 
Consideration received, satisfied in cash 
1,011 
Cash and cash equivalents disposed of 
(46) 
Net cash inflows 
965 
Gain (loss) on disposal 
784 
 
ii.
 
31 December 2019 
During the year 2019 the Group didn’t dispose any of its investment. 
 
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020

Sales

In millions of EUR

2020

2019

Sales: Energy

Gas

1,562

1,583

Electricity

1,254

1,437

Heat

325

391

Total Energy

3,141

3,411

Sales: Logistics and freight services

Sales: Other

Total revenues

from customers

3,187

3,467

Gain (loss) from commodity derivatives for trading with electricity and

gas, net

Total

3,195

3,476

For disaggregation of

revenue based on

type of service

and based on

geographical area refer

to Note

5 –

Operating segments.

Sales Energy:

Gas consists primarily

of revenue

from gas

transmission of

EUR 721

million (2019:

EUR

794 million) and from distribution of gas of EUR 421 million (2019: EUR

426 million).

Sales

Energy:

Electricity

consists

primarily

sale

electricity

EUR

927

million

(2019:

EUR

952

million). The amount of EUR 195 million (2019: EUR 358 million) relates

to distribution of electricity.

Other sales

are represented

mainly by

sales of

gypsum, revenues

from transportation

and disposal

costs,

sewage sludge incineration and restoration services to third parties.

2020

revenue

was

recognised

from

performance

obligations

satisfied

(or

partially

satisfied)

previous periods.

Contract

assets

and

liabilities

primarily

relate

not

invoiced

part

fulfilled

performance

obligation,

received payments

for services

and goods

where control

over the

assets was

not transferred

to customer

and

deferred

income

grid

connection

fees

collected

and

free-of-charge

non-current

assets

transferred from customers.

Several

items

gas

equipment

(typically

connection

terminals)

were

obtained

“free

charge”

from

developers

and

from

local

authorities

(this

does

not

represent

grant,

because

such

cases

the

local

authorities act in the role of a

developer). This equipment was recorded as property,

plant, and equipment

the

costs

incurred

the

developers

and

local

authorities

with

corresponding

amount

recorded

contract liability 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

the

income

statement

straight-line

basis

the

amount

depreciation

charges

non-current

tangible assets acquired free of charge.

In millions of EUR

31 December 2020

31 December 2019

Contract assets

Current

Non-Current

Contract liabilities

185

167

Current

Non-Current

115

105

The amount of EUR 61 million recognised in current contract liabilities at the beginning of the period has

been recognised as revenue during the year 2020.

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020

Cost of sales

In millions of EUR

2020

2019

Cost of Sales - Energy

Cost of sold electricity

722

930

Cost of sold gas and other energetic products

116

100

Consumption of coal and other material

117

122

Consumption of energy

209

289

Other cost of sales

Total Energy

1,190

1,476

Cost of Sales - Manufacturing, food processing and other

Consumption of material

Changes in WIP,

semi-finished products and finished goods

(1)

Cost of goods sold

Consumption of energy

Other cost of sales

Total Other

Total

1,217

1,503

Cost of sales presented in the above table contains only cost of purchased

energy and purchased materials

consumed

producing

energy

output,

does

not

contain

directly

attributable

overhead

(particularly

personnel

expenses,

depreciation

and

amortisation,

repairs

and

maintenance,

emission

rights,

taxes

and

charges etc.).

Personnel expenses

In millions of EUR

2020

2019

Wages and salaries

171

Compulsory social security contributions

Other social expenses

Total

239

240

The

average

number

employees

(calculated

using

figures

disposed

entities

until

their

respective

deconsolidation date) during 2020 was 6,428 (2019:

6,458), of which 130 were executives (2019:

127).

10.

Emission rights

In millions of EUR

2020

2019

Profit from sale of emission rights for trading

Deferred income (grant) released to profit and loss

Creation and release of provision for emission rights

(84)

(67)

Use of provision for emission rights

Consumption of emission rights

(65)

(39)

Total

(72)

(41)

The

increase

emission

rights

cost

caused

primarily

the

increase

average

price

piece

emission allowance from 24.39 EUR/piece in 2019 to 25.01 EUR/piece

in 2020.

The Ministries of the Environment of

the Czech Republic, Slovakia and Hungary

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.

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
49 
The 
companies 
that 
participate 
in 
the 
emission 
rights 
programme 
are 
United 
Energy, 
a.s., 
Plzeňská 
teplárenská, a.s., 
Elektrárny Opatovice, 
a.s., Stredoslovenská 
energetika, a.s., 
NAFTA 
a.s., SPP 
Storage, 
s.r.o. 
and 
eustream, 
a.s.. 
Pražská 
teplárenská, 
a.s. 
and 
Budapesti 
Erömü 
Zrt. 
were 
participating 
till 
the 
disposal date. 
 
11. 
Taxes 
and charges 
In millions of EUR 
2020 
2019 
Property tax 
3 
2 
Other taxes and charges 
6 
7 
Total taxes and 
charges 
9 
9 
 
12. 
Other operating income 
In millions of EUR 
2020 
2019 
Decentralization and cogeneration fee
(1)
14 
16 
Property acquired free-of-charge and fees from customers 
9 
6 
Compensation from other and insurance companies 
9 
5 
Rental income 
7 
7 
Consulting fees 
4 
5 
Waste disposal 
4 
3 
Contractual penalties 
2 
2 
Profit from sale of material 
1 
1 
Revenues from writte-off liabilities 
1 
- 
Revenues from re-invoicing 
1 
- 
Profit from disposal of tangible and intangible assets 
- 
1 
Other 
7 
10 
Total 
59 
56 
(1)
 
Decentralization and 
cogeneration 
fees relate 
to 
subsidy for 
producing 
electricity in 
cogeneration 
with heat. 
This 
revenue does not met the criteria of revenues from customers as mentioned in Note 3(n) 

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
50 
13. 
Other operating expenses 
In millions of EUR 
2020 
2019 
Outsourcing and other administration fees 
29 
29 
Information technologies costs 
12 
12 
Consulting expenses 
10 
11 
Transport expenses 
10 
10 
Rent expenses 
9 
9 
Office equipment and other material 
8 
8 
Loss from receivables written-off 
4 
- 
Insurance expenses 
4 
4 
Impairment losses (gains) 
3 
48 
Of which relates to: 
Property, plant and equipment and intangible assets 
(2) 
(1)
45 
 
Trade receivables and other assets 
4 
3 
 
Inventories 
1 
- 
Advertising expenses 
3 
4 
Gifts and sponsorship 
2 
2 
Loss on disposal of tangible and intangible assets 
2 
- 
Contractual penalties 
1 
2 
Communication expenses 
1 
1 
Training, courses, conferences 
1 
1 
Security services 
1 
1 
Creation and reversal of provision 
- 
(9) 
Other 
12 
16 
Total 
112 
149 
(1)
 
 
The
 
amount
 
includes
 
impairment
 
of
 
tangible
 
assets
 
of
 
EUR
 
39
 
million
 
recorded
 
by
 
SPP
 
–
 
distribúcia,
 
a.s.
 
(„SPPD“).
 
Since 
1 
January 
2020 
SPPD 
has 
been 
recognizing 
property, 
plant 
and 
equipment 
(“PPE”) 
used 
for 
natural 
gas 
distribution under the IAS 16 Revaluation model (for the 
Group reporting purposes). The effect on revaluation reserve 
in equity as of 1 January 2020 was positive as a result of this PPE revaluation. As part of this exercise, in 2019 SPPD 
performed detailed 
evaluation of the 
PPE with 
the aim to 
identify non-performing assets. 
During this activity 
SPPD 
compared the net book value of its 
individual distribution assets with estimated fair 
value. For certain items a 
negative 
difference was identified, 
i.e. estimated fair value 
was lower than the 
net book value. For 
such items SPPD recorded 
an impairment charge, in total EUR 39 million. 
 
No 
material 
research 
and 
development 
expenses 
were 
recognised 
in 
profit 
and 
loss 
for 
the 
year 
ended 
31 December 2020 and 31 December 2019. 
Fees payable to statutory auditors 
In millions of EUR 
2020 
2019 
Statutory audits 
1 
1 
Services in addition to the Statutory audit 
- 
- 
Total
1 
1 
 
The figures 
presented above 
include expenses 
recorded by 
all subsidiaries 
and also 
associates and 
joint-
ventures consolidated using the equity 
method in 100% amount. 
Statutory audits include fees payable 
for 
statutory 
audits 
of 
financial 
statements. 
Services 
in 
addition 
to 
the 
Statutory 
audit 
include 
following 
services: 
●
 
Review of the condensed interim consolidated financial statements 
as at 30 June 2020; 
●
 
Provision of a comfort letter for the purpose of issuing individual 
entity bonds 
●
 
Assistance with the compilation of the Sustainability Report. 
●
 
Expert opinion on R&D allowance 
●
 
Penetration testing of selected IT infrastructures 
●
 
Audit of loan covenants 
●
 
Automatization of public registers data collection gathering 
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020

14.

Finance income and expense, profit (loss) from

financial instruments

Recognised in profit or los

In millions of EUR

2020

2019

Interest income

Dividend income

Fee and commission income

Net foreign exchange profit

Finance income

Interest expense

(109)

(132)

Interest expense from unwind of provision discounting

(3)

Fees and commissions expense for other services

(15)

(5)

Net foreign exchange loss

(27)

Finance expense

(154)

(140)

Profit from loan receivables written off

Profit (loss) from hedging derivatives

(1)

Profit (loss) from other derivatives for trading

(1)

Profit (loss) from assets at fair value through profit or loss

Profit (loss) from currency derivatives for trading

(1)

(3)

(2)

Profit (loss) from interest rate derivatives for trading

(1)

(59)

Impairment losses from financial assets

(1)

Profit (loss) from financial instruments

(39)

(4)

Net finance income (expense) recognised in profit or loss

for continuing operations

(188)

(124)

(1)

All derivatives are for the risk management purposes.

15.

Income tax expenses

Income taxes recognized in profit or loss

In millions of EUR

2020

2019

Current taxes:

Current year

(333)

(336)

Adjustment for prior periods

(2)

Withholding tax

Total current

taxes

(335)

Deferred taxes:

Origination and reversal of temporary differences

(1)

Change in tax rate

Total deferred

taxes

Total income

taxes (expense) benefit recognised in profit or loss for

continuing operations

(265)

(295)

(1)

For details refer to Note 18 – Deferred tax assets and liabilities

Balance of current

income tax liability

in amount of

EUR 48 million

(2019:

EUR 105 million)

is mainly

represented by

eustream, a.s.

of EUR

13 million

(2019:

EUR 75

million), NAFTA Germany GmbH

of EUR

million

(2019:

EUR

million)

and

Stredoslovenská distribučná,

a.s.

(Stredoslovenská

energetika

Distribúcia, a.s.) of EUR 10 million (2019:

EUR 2 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 rates is 19% for fiscal year

2020 (19%

for 2019)

and Hungarian

legislation the

corporate income

tax rate

is 9%

for fiscal

year 2020

(9%

for

2019).

The Slovak

corporate

income tax

rate is

21%

for

fiscal

year

2020 (21%

for

2019).

The

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
52 
German federal income tax 
rate is 26.93% for fiscal 
year 2020 (26.93% for 
2019). Current year income 
tax 
line includes also special sector tax effective in Slovakia and Hungary. 
Income tax recognised in other comprehensive income 
In millions of EUR 
2020 
Gross 
Income tax 
Net of 
income tax 
Foreign currency translation differences for foreign operations 
70 
- 
70 
Foreign currency translation differences from presentation currency 
(52) 
- 
(52) 
Effective portion of changes in fair value of cash-flow hedges 
(29) 
7 
(22) 
Fair value reserve included in other comprehensive income 
1,768 
(453) 
1,315 
Total 
1,757 
(446) 
1,311 
In millions of EUR 
2019 
Gross 
Income tax 
Net of 
income tax 
Foreign currency translation differences for foreign operations 
(43) 
- 
(43) 
Foreign currency translation differences from presentation currency 
28 
- 
28 
Effective portion of changes in fair value of cash-flow hedges 
(48) 
11 
(37) 
Fair value reserve included in other comprehensive income 
2,166 
(551) 
1,615 
Total 
2,103 
(540) 
1,563 
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 
2020 
2019 
% 
% 
Profit before tax 
1,759 
1,085 
Income tax using the Company’s domestic rate (19%) 
19.00% 
334 
19.00% 
206 
Effect of tax rates in foreign jurisdictions 
1.36% 
24 
1.84% 
20 
Non-deductible expenses
(1)
3.87% 
68 
1.19% 
13 
Non-taxable income
(2)
(13.31%) 
(234) 
(0.37%) 
(4) 
Recognition of previously unrecognized tax losses 
0.91% 
16 
- 
- 
Current year losses for which no deferred tax asset was recognized 
0.40% 
7 
0.37% 
4 
Change in temporary differences for which no deferred tax asset is 
recorded 
(0.23%) 
(4) 
- 
- 
Regulated industry tax
(3)
3.07% 
54 
5.25% 
57 
Witholding tax 
- 
- 
(0.09%) 
(1) 
Income taxes recognised in profit or loss for continuing 
operations 
15.07% 
265 
27.19% 
295 
(1) 
The basis consists mainly of loss from sale of investment in NPTH, a.s. v likvidaci of EUR 146 million and from loss of 
interest rate derivatives realized by EP Infrastructure, a.s. (CE Energy, 
a.s.) of EUR 46 million (2019: non-deductible 
interest expense of EUR 41 million). 
(2) 
The basis of EUR 931 million consists mainly of gain from sale of investments in Pražská teplárenská Holding a.s. v 
likvidaci, PT Transit, a.s., Pražská teplárenská a.s. and its subsidiaries and associates and Budapesti Erőmű Zrt. and 
Energia-pro Zrt.. 
(3) 
This item relates to special industry tax applied in Slovakia and Hungary. The balance consists mainly of amount 
recognized by eustream, a.s. of EUR 24 million (2019: EUR 34 million), SPP - distribúcia, a.s. of EUR 12 million (2019: 
EUR 11 million), NAFTA 
a.s. of EUR 5 million (2019: EUR 4 million), Stredoslovenská distribučná, a.s. of EUR 6 million 
(2019: EUR 4 million) and Budapesti Erömü Zrt. of EUR 5 million (2019: EUR 4 million). 

 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
53 
 
16. 
Property, 
plant and equipment 
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 
constructio
n 
Total 
Cost 
Balance at 1 January 2020 
2,331 
3,803 
- 
2,592 
1,987 
18 
211 
10,942 
Effects of movements in foreign exchange 
(32) 
- 
- 
- 
(26) 
(1) 
(1) 
(60) 
Additions 
46 
- 
- 
- 
54 
- 
105 
205 
Reclassification 
- 
- 
2,094 
(2,580) 
- 
- 
- 
(486) 
Revaluation 
- 
- 
(2)
1,762 
- 
- 
- 
- 
1,762 
Disposals 
(11) 
- 
- 
- 
(20) 
(1) 
- 
(32) 
Disposed entities 
(345) 
- 
- 
- 
(117) 
(6) 
(10) 
(478) 
Transfers 
21 
- 
44 
- 
62 
1 
(128) 
- 
Change in provision recorded in property, plant and equipment 
10 
- 
- 
- 
- 
- 
- 
10 
Balance at 31 December 2020 
2,020 
3,803 
3,900 
12 
1,940 
11 
177 
11,863 
Depreciation and impairment losses 
Balance at 1 January 2020 
(739) 
(37) 
- 
(525) 
(842) 
(3) 
(5) 
(2,151) 
Effects of movements in foreign exchange 
13 
- 
- 
- 
15 
- 
- 
28 
Depreciation charge for the year 
(94) 
(89) 
(142) 
- 
(110) 
(1) 
- 
(436) 
Disposals 
5 
- 
- 
- 
23 
1 
- 
29 
Disposed entities 
147 
- 
- 
- 
74 
2 
- 
223 
Reclassification 
- 
- 
(39) 
525 
- 
- 
- 
486 
Impairment losses recognized in profit or loss 
7 
- 
- 
- 
1 
- 
(3) 
5 
Balance at 31 December 2020 
(661) 
(126) 
(181) 
- 
(839) 
(1) 
(8) 
(1,816) 
Carrying amounts 
At 1 January 2020 
1,592 
3,766 
- 
2,067 
1,145 
15 
206 
8,791 
At 31 December 2020 
1,359 
3,677 
3,719 
12 
1,101 
10 
169 
10,047 
(1)
 
Including right-of-use assets 
(2)
 
For more information on revaluation of gas distribution pipelines, 
refer to note 3 (a). 

 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
54 
In millions of EUR 
Land and 
buildings
(1)
Gas 
transmission 
pipelines - 
fair value 
model 
Gas pipelines 
- cost model 
Technical 
equipment, 
plant and 
machinery
(1)
Other 
equipment, 
fixtures and 
fittings 
Under 
construction 
Total 
Cost 
Restated balance at 31 December 2018 
2,329 
- 
4,568 
1,796 
46 
137 
8,876 
Adjustment for change in accounting policy (IFRS16) 
41 
- 
- 
43 
- 
- 
84 
Balance at 1 January 2019 
2,370 
- 
4,568 
1,839 
46 
137 
8,960 
Effects of movements in foreign exchange 
7 
- 
3 
3 
- 
- 
13 
Additions 
47 
- 
1 
32 
139 
219 
Reclassification 
- 
1,637 
(1,978) 
- 
- 
- 
(341) 
Revaluation 
- 
(2)
2,166 
- 
- 
- 
- 
2,166 
Disposals 
(15) 
- 
(30) 
(19) 
- 
(1) 
(65) 
Transfers 
17 
- 
28 
19 
2 
(66) 
- 
Change in provision recorded in property, plant and equipment 
(8) 
- 
- 
- 
- 
- 
(8) 
Effect of final PPA on 
Nafta Germany 
(87) 
- 
- 
113 
(30) 
2 
(2) 
Balance at 31 December 2019 
2,331 
3,803 
2,592 
1,987 
18 
211 
10,942 
Depreciation and impairment losses 
Restated balance at 31 December 2018 
(650) 
- 
(738) 
(733) 
(3) 
(4) 
(2,128) 
Reclassification due to change of accounting policy - application of 
revaluation model 
- 
- 
0 
- 
- 
- 
- 
Balance at 1 January 2019 
(650) 
- 
(738) 
(733) 
(3) 
(4) 
(2,128) 
Effects of movements in foreign exchange 
(2) 
- 
- 
(4) 
- 
(6) 
Depreciation charge for the year 
(97) 
(86) 
(71) 
(122) 
- 
- 
(376) 
Disposals 
14 
- 
31 
18 
- 
- 
63 
Reclassification 
- 
49 
292 
0 
- 
- 
341 
Impairment losses recognized in profit or loss 
(4) 
- 
(39) 
(1) 
- 
(1) 
(45) 
Balance at 31 December 2019 
(739) 
(37) 
(525) 
(842) 
(3) 
(5) 
(2,151) 
Carrying amounts 
At 1 January 2019 
1,679 
- 
3,830 
1,063 
43 
133 
6,748 
At 31 December 2019 
1,592 
3,766 
2,067 
1,145 
15 
206 
8,791 
(1)
 
Including right-of-use assets 
(2)
 
For more information on revaluation of gas transmission pipelines, 
refer to note 3 (a). 

 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
55 
Revaluation of gas pipeline
 
Gas 
distribution 
pipeline 
by 
SPP 
– 
distribúcia, 
a.s. 
and 
gas 
transmission 
pipeline 
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 (c) 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 
2020 would be EUR 
4,166 million (net 
book value of 
eustream’s assets of EUR 2,130 
million and net 
book 
value of SPPD’s assets of EUR 2,036 million).
 
Idle assets 
As at 31 December 2020 and 31 December 2019 the Group had no significant 
idle assets. 
Security 
At 31 December 
2020 and 2019 
no property, plant and equipment 
is subject to 
pledges to secure 
bank loans 
or issued debentures. 
 
17. 
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 2020 
113 
72 
81 
168 
10 
444 
Effect of movements in foreign exchange rates 
(3) 
(1) 
(3) 
- 
- 
(7) 
Additions 
- 
3 
63 
- 
7 
73 
Disposals 
- 
(1) 
(65) 
- 
- 
(66) 
Disposed entities 
- 
(1) 
(7) 
- 
- 
(8) 
Transfers 
- 
2 
- 
- 
(2) 
- 
Balance at 31 December 2020 
110 
74 
69 
168 
15 
436 
Amortisation and impairment losses 
Balance at 1 January 2020 
(11) 
(50) 
- 
(146) 
(3) 
(210) 
Amortisation for the year 
- 
(7) 
- 
(16) 
(1) 
(24) 
Balance at 31 December 2020 
(11) 
(57) 
- 
(162) 
(4) 
(234) 
Carrying amount 
At 1 January 2020 
102 
22 
81 
22 
7 
234 
At 31 December 2020 
99 
17 
69 
6 
11 
202 

 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
56 
In millions of EUR 
Goodwill 
Software 
Emission 
rights 
Customer 
relationsh
ip and 
other 
contracts 
Other 
intangible 
assets 
Total 
Cost 
Balance at 1 January 2019 
112 
68 
48 
168 
11 
407 
Effect of movements in foreign exchange rates 
1 
1 
- 
- 
- 
2 
Additions 
- 
3 
74 
- 
2 
79 
Disposals 
- 
(1) 
(41) 
- 
(2) 
(44) 
Transfers 
- 
1 
- 
- 
(1) 
- 
Balance at 31 December 2019 
113 
72 
81 
168 
10 
444 
Amortisation and impairment losses 
Balance at 1 January 2019 
(11) 
(41) 
- 
(129) 
(5) 
(186) 
Amortisation for the year 
- 
(10) 
- 
(17) 
- 
(27) 
Disposals 
- 
1 
- 
- 
2 
3 
Balance at 31 December 2019 
(11) 
(50) 
- 
(146) 
(3) 
(210) 
Carrying amount 
At 1 January 2019 
101 
27 
48 
39 
6 
221 
At 31 December 2019 
102 
22 
81 
22 
7 
234 
 
In 
2020, 
the 
Group 
purchased 
emission 
allowances 
of 
EUR 
52 
million 
(2019: 
EUR 
54 
million). 
The 
remaining part of EUR 
11 million (2019: 
EUR 20 million) was 
allocated to the Group 
by the Ministry of 
the Environment of the Czech Republic, Slovakia and Hungary. 
Amortisation of intangible assets is included in the row Depreciation and 
amortisation 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 2020 and 2019. 
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 2020 and 2019. 
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 2020 
31 December 2019 
Elektrárny Opatovice, a.s. 
88 
91 
EP Cargo a.s. 
5 
5 
EP ENERGY TRADING, a.s. 
5 
5 
SPV100, s.r.o. 
1 
1 
Total goodwill 
99 
102 
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 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
57 
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. The 
discount rates 
applied to 
the cash 
flow projections 
are calculated 
as the 
weighted average 
cost of 
capital 
(WACC) 
of each CGU. 
The 
calculation 
of 
the 
recoverable 
amounts 
as 
at 
31 
December 
2020 
was 
based 
on 
the 
following 
key 
assumptions: 
Cash-flows were 
projected based 
on past 
experience, actual 
operating results 
and 
the 
one-year business 
plan 
followed 
by 
additional 
six 
years 
of 
modelled 
projections 
followed 
by 
projected 
results 
based 
on 
estimated growth 
factor plus 
a terminal 
value if 
relevant. Cash 
flows for 
a terminal 
period were 
extrapolated 
using a constant growth rate of 0% – 2%, which 
does not exceed the long-term average growth 
rate for the 
industry. Other key assumptions 
considered by 
management include 
forecasts of commodity 
market prices, 
future 
electricity 
and 
gas 
prices, 
investment 
activity, 
changes 
in 
working 
capital 
and 
changes 
in 
the 
regulatory framework. 
 
The 
discount rates 
used in 
estimating value 
in 
use 
were estimated 
based on 
the 
principle of 
an 
average 
market participant using peer companies (i.e. 
companies operating in a comparable industry 
and listed on 
world 
markets) 
as 
a 
standard 
for 
observing 
respective 
betas, 
debt 
to 
equity 
ratios 
and 
size 
adjustment 
parameters used for 
calculation. The resulting 
pre-tax discount rates 
ranged from 4.51% 
to 5.48% 
(2019: 
4.81% to 6.08%). 
Changes in 
used discount 
rates compared 
to prior 
year reflect 
recent market 
development, 
namely decrease in risk-free rates and cost of debt used for calculation. 
No impairment of Goodwill was recognized in 2020 and in 2019. 
Additional information on CGU with significant goodwill assigned:
 
The 
recoverable 
amount 
of 
Elektrárny 
Opatovice, 
a.s. 
was 
based 
on 
its 
value 
in 
use, 
determined 
by 
discounting the 
future cash 
flows 
to be 
generated from 
the continuing 
use of 
Elektrárny Opatovice, 
a.s. 
Value 
in 
use 
in 
2020 
was 
determined 
in 
a 
similar 
manner 
as 
in 
2019. 
Management 
estimated 
that 
the 
recoverable amount 
for Elektrárny 
Opatovice, a.s. 
exceeded its 
carrying amount 
(including goodwill) 
by 
EUR 425 million (2019: EUR 341 million). 
Key assumptions used in the calculation 
of value in use were 
the 
discount rate, 
the terminal 
value growth 
rate and 
the planned 
EBITDA. These 
selected assumptions 
were as follows: 
2020 
2019 
Discount rate 
4.51% 
4.94% 
Terminal value growth rate 
0.50% 
0.50% 
EPIF Group uses weighted 
average cost of capital 
(WACC). 
The discount rate 
is a pre-tax measure. 
Cost 
of 
equity 
is 
based 
on 
the 
risk-free 
rate 
adjusted 
for 
a 
risk 
premium 
to 
reflect 
both 
the 
increase 
risk 
of 
investing in equities generally and the systemic risk of Elektrárny Opatovice, 
a.s. 
Budgeted EBITDA was 
based on an 
expectation of future outcomes 
taking into account 
past experience. In 
particular, we have reflected the following: 
a.
 
estimated
 
refurbishments
 
necessary
 
to
 
comply
 
with
 
applicable
 
regulations
 
(impact
 
especially
 
on
 
electricity output/sales, OPEX and CAPEX); 
b.
 
market expectations regarding power and CO2 prices, development based on 
historical trends; 
c.
 
a slight decrease in heat supplies and modest increase of heat prices; 
d.
 
the inflation driven development of various other positions, especially 
overhead costs. 
The Group 
did not 
identify any 
CGU for 
which reasonably 
possible change 
in key 
management assumptions 
(EBITDA, terminal growth, discount rate) would cause that recoverable amount would decrease below its 
carrying amount.

 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
58 
18. 
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 
2020 
31 December 
2020 
31 December 
2020 
31 December 
2019 
31 December 
2019 
31 December 
2019 
Temporary 
difference related to: 
Assets 
Liabilities 
Net 
Assets 
Liabilities 
Net 
Property, Plant and Equipment 
1 
(1,854) 
(1,853) 
1 
(1,481) 
(1,480) 
Intangible assets 
- 
(15) 
(15) 
- 
(15) 
(15) 
Inventories 
2 
- 
2 
2 
- 
2 
Trade receivables and other assets 
2 
- 
2 
2 
- 
2 
Provisions 
44 
- 
44 
48 
- 
48 
Employees benefits (IAS 19) 
8 
- 
8 
7 
- 
7 
Cash equivalents, loans and receivables - at amortised cost 
- 
(12) 
(12) 
- 
(16) 
(16) 
Tax losses 
1 
- 
1 
- 
- 
- 
Derivatives 
31 
9 
40 
23 
- 
23 
Other items 
3 
(34) 
(31) 
11 
(43) 
(32) 
Subtotal 
92 
(1,906) 
(1,814) 
94 
(1,555) 
(1,461) 
Set-off tax 
(75) 
75 
- 
(77) 
77 
- 
Total 
17 
(1,831) 
(1,814) 
17 
(1,478) 
(1,461) 

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
59 
Movements in deferred tax during the year 
In millions EUR 
Balances related to: 
Balance at 
1 January 2020 
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 2020 
Property, plant and equipment 
(1,480) 
51 
(447) 
3 
22 
(2) 
(1,853) 
Intangible assets 
(15) 
- 
- 
- 
- 
- 
(15) 
Inventories 
2 
- 
- 
- 
- 
- 
2 
Trade receivables and other assets 
2 
- 
- 
- 
- 
- 
2 
Provisions 
48 
2 
- 
(1) 
(5) 
- 
44 
Employee benefits (IAS 19) 
7 
1 
- 
- 
- 
- 
8 
Cash equivalents, loans and receivables - at 
amortised cost 
(16) 
1 
- 
- 
3 
- 
(12) 
Tax losses 
- 
1 
- 
- 
- 
- 
1 
Derivatives 
23 
7 
7 
- 
3 
- 
40 
Other 
(32) 
7 
(6) 
(2) 
1 
1 
(31) 
Total 
(1,461) 
70 
(446) 
- 
24 
(1) 
(1,814) 
(1) 
Revaluation of gas distribution pipelines (FV model) in SPP - distribúcia, a.s. of EUR 447 million. 
(2) 
The balance refers to Pražská teplárenská, a.s. of EUR 19 million and PT Transit, a.s. of EUR 5 million. 
 
In millions EUR 
Balances related to: 
Balance at 
1 January 2019 
Recognised in 
profit or loss 
Recognised in 
other 
comprehensive 
income 
(1)
Transfer 
Effect from PPA 
corrections 
Effect of 
movements in 
foreign exchange 
rate 
Balance at 31 
December 2019 
Property, plant and equipment 
(973) 
39 
(551) 
(1) 
4 
2 
(1,480) 
Intangible assets 
(15) 
- 
- 
- 
- 
- 
(15) 
Inventories 
2 
- 
- 
- 
- 
- 
2 
Trade receivables and other assets 
4 
(2) 
- 
- 
- 
- 
2 
Provisions 
32 
- 
- 
16 
- 
- 
48 
Employee benefits (IAS 19) 
5 
- 
1 
1 
- 
- 
7 
Loans and borrowings 
(19) 
- 
- 
3 
- 
- 
(16) 
Tax losses 
2 
(2) 
- 
- 
- 
- 
- 
Derivatives 
13 
- 
10 
- 
- 
- 
23 
Other 
(18) 
5 
- 
(19) 
- 
- 
(32) 
Total 
(967) 
40 
(540) 
- 
4 
2 
(1,461) 
(1) 
Revaluation of gas transmission pipelines (FV model) in eustream of EUR 549 million and finalisation of PPA 
in NAFTA Germany GmbH of EUR (4) million. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
60 
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 2020 
31 December 2019 
Tax losses carried forward 
368 
328 
Total 
368 
328 
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 2020 
31 December 2019 
PT Holding Investments B.V. 
4 
4 
EPH Gas Holding B.V. 
65 
55 
SPP Infrastructure, a.s. 
2 
- 
Czech Gas Holding Investment B.V. 
13 
12 
Seattle Holding B.V. 
96 
96 
Slovak Gas Holding B.V. 
175 
161 
Nafta Exploration d.o.o. 
4 
- 
EP Infrastructure, a.s. 
9 
- 
Total 
368 
328 
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 profit were to be 
achieved in 2020, then the 
associated tax income (savings) would 
be up 
to EUR 68 million (2019: 62 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: 
2021 
2022 
2023 
2024 
After 2025 
Total 
Tax 
losses
1 
1 
3 
99 
264 
368 
Tax 
losses expire 
over a 
period of 
5 years 
in the 
Czech Republic, 4 
years in 
Slovakia and 
9 years 
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. 
 
19. 
Inventories 
In millions of EUR 
31 December 2020 
31 December 2019 
Natural gas 
138 
147 
Fossil fuel 
20 
25 
Raw materials and supplies 
14 
13 
Spare parts 
12 
16 
Work in progress 
- 
1 
Total 
184 
202 
At 31 December 2020 and 2019 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 2020 
61 
20. 
Trade receivables 
and other assets 
In millions of EUR 
31 December 2020 
31 December 2019 
Trade receivables 
201 
235 
Accrued income
(1)
88 
138 
Advance payments 
37 
56 
Value 
added tax receivables, net 
3 
7 
Estimated receivables 
2 
3 
Other taxes receivables, net 
- 
1 
Other receivables and assets 
52 
55 
Allowance for bad debts 
(22) 
(20) 
Total 
361 
475 
Non-current 
31 
39 
Current 
330 
436 
Total 
361 
475 
1) 
For more detail on accrued income refer to Note 30 – Commitments and contingencies 
In 2020 EUR 5 million receivables were written-off through profit or loss (2019: EUR 
0 million). 
As at 31 December 2020 no receivables are subject to pledges (2019: 0 
million). 
As at 31 
December 2020 trade 
receivables and other 
assets amounting EUR 
355 million are 
not past due 
(2019: EUR 453 million) remaining net balance of EUR 6 million is overdue (2019: 
EUR 14 million). For 
more detailed aging analysis refer to Note 32 (a)(ii) – Risk management – credit 
risk (impairment losses). 
As at 31 December 2020 and 2019 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 32 – Risk management policies and disclosures. 
 
21. 
Cash and cash equivalents 
In millions of EUR 
31 December 2020 
31 December 2019 
Current accounts with banks 
564 
674 
Term deposits 
145 
- 
Total 
709 
674 
Term deposits with original maturity of up to three months are classified as cash equivalents. 
As at 31 December 2020 and 2019 no cash equivalents are subject to pledges. 
 
 
22.
 
Equity 
Share capital and share premium 
The 
authorised, 
issued 
and 
fully 
paid 
share 
capital 
as 
at 
31 
December 
2020 
consisted 
of 
222,870,000 
ordinary shares with 
a par value 
of CZK 250 each (2019: 
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 (2019: 
100,130,000 shares) (“Shares B”). 
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. 
In 
2020 
the 
Company 
declared 
and 
paid 
dividends 
in 
amount 
of 
EUR 
1,128 
million 
(2019: 
EUR 
450 
million) to its shareholders, 
out of which EUR 140 million as interim dividends from current year profit. 

 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
62 
31 December 2020 
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.a.r.l. 
- 
100,130 
31 
31 
Total 
222,870 
100,130 
100 
100 
31 December 2019 
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.a.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 2020 
31 December 2019 
Non-distributable reserves 
1 
1 
Revaluation reserve 
1,377 
774 
Hedging reserve 
(102) 
(100) 
Translation reserve 
(33) 
(87) 
Other capital reserves 
(3,814) 
(3,814) 
Total 
(2,571) 
(3,226) 
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
 
t
he
 
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 
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. 
Fair value 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 
financial 
derivatives 
designated 
as 
cash 
flow 
hedges 
are 
recognised in equity (for more 
details please refer to Note 
28 – Financial instruments and 
Note 32 – Risk 
management policies and disclosure). 
During 2020 
the 
Group reclassified 
EUR 73 
million 
as 
income from 
Hedging 
reserves to 
Profit or 
loss 
(2019: 
EUR 31 million as income). 

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
63 
 
 
23.
 
Earnings per share 
Basic earnings per share 
Basic earnings per share in EUR per 1 share of CZK 250 (2019: in EUR per 1 share of CZK 250) nominal 
value equal 3.44 (2019: 1.24). 
The 
calculation of 
basic earnings 
per share 
as 
at 
31 December 
2020 was 
based on 
profit attributable 
to 
ordinary shareholders of EUR 1,111 
million (2019: 
EUR 401 million), and a weighted average number of 
ordinary shares outstanding of 323,000,000 (2019: 323,000,000). 
 
 
Weighted average number of ordinary shares 
2020 
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 
Weighted average number of ordinary shares 
2019 
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 2020 
64 
24. 
Non-controlling interest 
31 December 2020 
Stredo-slovenská 
energetika, a.s. 
and its 
subsidiaries 
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 
Holding entity 
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 2020 
461 
111 
(252) 
(7)
1,493 
1,036 
38 
125 
- 
3,012 
Profit 
(loss) attributable to non- 
controlling interest for the period 
78 
32 
- 
59 
191 
7 
7 
10 
384 
Dividends declared 
(96) 
(1) 
(268) 
- 
- 
- 
(8) 
(1) 
(374) 
Statement of financial position 
information
(2)
Total assets 
1,226 
795 
5,585 
4,467 
4,413 
122 
245 
of which: 
non-current 
823 
630 
(4)
5,456 
3,973 
4,233 
34 
197 
 
current 
403 
165 
129 
494 
180 
88 
48 
Total liabilities 
322 
438 
1,021 
1,539 
2,383 
21 
52 
of which: 
non-current 
159 
393 
644 
949 
2,104 
16 
25 
 
current 
163 
45 
377 
590 
279 
5 
27 
Net assets 
904 
357 
4,565 
2,928 
2,030 
101 
192 
- 
- 
Statement of comprehensive income 
information
(2)
Total revenues 
1,018 
243 
617 
447 
747 
40 
121 
of which: 
dividends received 
- 
- 
(5)
584 
- 
- 
- 
- 
Profit after tax 
152 
102 
584 
117 
374 
19 
11 
Total other comprehensive income for the 
period, net of tax 
- 
(2) 
- 
1,314 
(54) 
- 
- 
Total comprehensive income for the year
(2)
152 
100 
584 
1,431 
320 
19 
11 
- 
- 
Net cash inflows (outflows)
(2)
29 
14 
(10) 
11 
(146) 
7 
(6) 
(1)
 
Principal place of business of subsidiaries 
and associates varies (for detail refer to Note 34 – 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. 
(4)
 
Includes EUR 4,914 million as 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 
eliminated in calculation of NCI 
(6)
 
Even though the Group holds less than half of the 
voting rights it 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. 
(7)
 
Increase of NCI on SPP distribúcia, a.s. relates to revaluation of Property, plant and equipment of 
EUR 1,315 million increasing NCI by EUR 672 million. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
65 
 
31 December 2019 
Stredo-slovenská 
energetika, a.s. 
and its 
subsidiaries 
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 
Holding entity 
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 2019 
480 
102 
(284) 
823 
(7)
1,086 
31 
130 
3 
2,371 
Profit 
(loss) attributable to non-controlling 
interest for the period 
65 
25 
- 
68 
210 
3 
9 
10 
389 
Dividends declared 
(5) 
(1) 
(340) 
- 
- 
- 
(8) 
- 
(354) 
Statement of financial position 
information
(2)
Total assets 
1,256 
855 
6,253 
2,781 
4,736 
100 
252 
of which: 
non-current 
827 
757 
(4)
5,461 
2,233 
4,335 
30 
196 
 
current 
429 
98 
792 
548 
401 
70 
56 
Total liabilities 
314 
527 
1,746 
1,168 
2,606 
19 
52 
of which: 
non-current 
142 
476 
546 
1,018 
1,702 
15 
24 
 
current 
172 
51 
1,200 
150 
904 
4 
28 
Net assets 
942 
328 
4,507 
1,613 
2,129 
81 
200 
- 
- 
Statement of comprehensive income 
information
(2)
Total revenues 
1,209 
217 
654 
440 
830 
30 
115 
of which: 
dividends received 
- 
- 
(5)
608 
- 
- 
- 
- 
Profit after tax 
127 
80 
608 
134 
412 
7 
13 
Total other comprehensive income 
for the period, net of tax 
- 
3 
- 
1 
1,612 
- 
- 
Total comprehensive income for the year
(2)
127 
83 
608 
135 
2,023 
7 
13 
Net cash inflows (outflows)
(2)
86 
(13) 
4 
21 
188 
3 
3 
(1)
 
Principal place of business of subsidiaries 
and associates varies (for detail refer to Note 34 – 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. 
(4)
 
Includes EUR 4,907 million as 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 
eliminated in calculation of NCI 
(6)
 
Even though the Group holds less than half of the 
voting rights it 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. 
(7)
 
Increase of NCI on eustream, a.s. relates to revaluation of Property, plant and equipment of EUR 1,615 million 
increasing NCI by EUR 824 million. 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
66 
25. 
Loans and borrowings 
In millions of EUR 
31 December 2020 
31 December 2019 
Loans payable to credit institutions 
1,042 
1,200 
Loans payable to other than credit institution 
1 
0 
Issued debentures at amortised costs 
3,441 
3,700 
Bank overdraft 
- 
31 
Liabilities from financial leases 
58 
76 
Total 
4,542 
5,007 
Total non-current liabilities 
3,926 
4,105 
Total current liabilities 
616 
902 
Total 
4,542 
5,007 
The weighted average interest rate on loans and borrowings (excl. debentures) 
for 2020 was 1.06% 
(2019: 1.37%). 
Issued debentures at amortised costs 
Details about debentures issued as at 31 December 2020 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 
(3) 
12/2/2025 
2.625 
2.685 
SPPD bond 
500 
7 
(1) 
23/6/2021 
2.625 
2.828 
EP Infrastructure 2024 notes 
750 
8 
(3) 
26/4/2024 
1.659 
1.786 
EP Infrastructure 2026 notes 
600 
4 
(3) 
30/7/2026 
1.698 
1.795 
2027 Private Offering 
70 
- 
(1) 
8/4/2027 
(1)
2.150 
2.360 
EP Infrastructure 2028 notes 
500 
2 
(3) 
9/10/2028 
2.045 
2.117 
eustream bond 
500 
5 
(3) 
25/6/2027 
1.625 
1.759 
Total 
3,420 
38 
(17) 
- 
- 
- 
1)
 
Interest rate is a combination of reference interest 
rate (6M EURIBOR) and margin of 2.15% p.a. set for relevant 
interest period. 
Details about debentures issued as at 31 December 2019 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 I 
750 
13 
(0) 
18/7/2020 
3.750 
3.773/3.717 
SPP Infrastructure Financing bond II 
500 
12 
(4) 
12/2/2025 
2.625 
2.685 
SPPD bond 
500 
7 
(2) 
23/6/2021 
2.625 
2.828 
EP Infrastructure 2024 notes 
750 
8 
(4) 
26/4/2024 
1.659 
1.786 
EP Infrastructure 2026 notes 
600 
4 
(4) 
30/7/2026 
1.698 
1.795 
2027 Private Offering 
70 
0 
(1) 
8/4/2027 
(1)
2.150 
2.360 
EP Infrastructure 2028 notes 
500 
2 
(3) 
9/10/2028 
2.045 
2.117 
Total 
3,670 
47 
(17) 
- 
- 
- 
1)
 
Interest rate is a combination of reference interest rate 
(6M EURIBOR) and margin of 2.15% p.a. set for relevant 
interest period. 
 
 

 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
67 
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%. 
Private Offering (2027 Notes)
 
On 8 
April 2019, 
EP Infrastructure 
placed EUR 
70 million 
eight-year notes, 
which were 
accepted for 
trading 
at the Third 
Market operated by 
Vienna Stock Exchange. The 
notes bear 
interest at 6M 
EURIBOR +2.15%, 
are unsecured and due in April 2027 (“Private Offering”). The Group 
may prematurely redeem all, but not 
part, of the 
Private Offering at 
a redemption price 
equal to 100% 
of the aggregate 
principal amounts 
thereof 
plus accrued and 
unpaid interest and 
additional amounts, if 
any. Further, the Group may redeem 
all, but not 
part, of 
the Private 
Offering 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 
Private Offering 
prematurely at 
the principal 
amount of 
100% of 
the prematurely 
redeemed, 
plus accrued and unpaid interest and additional amounts, if any. 
The 2027 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 Private 
Offering 
is 

 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
68 
stated net of 
debt issue costs 
of EUR 1 
million. These costs 
are allocated to 
the profit and 
loss over the 
term 
of the Private Offering through the effective interest rate of 2.36%. 
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. 
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%. 
2021 SPPD bond 
 
On 23 
June 2014, 
SPP - 
distribúcia, a.s. 
issued bonds 
in the 
amount of 
EUR 500 
million with 
a fixed 
interest 
rate of 2.625% 
p.a. The maturity of 
bonds is on 
23 June 2021. The 
2021 SPPD bond is 
stated net of 
debt 
issue costs of EUR 3 million. These costs are allocated to the profit and loss account through the effective 
interest rate of 2.828%. 
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 maturity of bonds is 
on 12 February 2025. 
The 2020 SPP IF 
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. 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 2020 
69 
Other loans and borrowings 
Terms and 
debt repayment schedule 
Terms and conditions of outstanding loans as at 31 December 2020 were as follows: 
In millions of EUR 
Cur- 
rency 
Nominal 
interest 
rate 
Year 
of 
maturity 
(up to) 
Balance at 
31/12/20 
Due within 
1 year 
Due in 1–5 
years 
Due in 
following 
years 
Unsecured bank loan 
EUR 
variable* 
2021 
75 
75 
- 
- 
Unsecured bank loan 
EUR 
variable* 
2024 
386 
- 
386 
- 
Unsecured bank loan 
EUR 
variable* 
2025 
400 
- 
400 
- 
Unsecured bank loan 
EUR 
variable* 
2026 
48 
- 
- 
48 
Unsecured bank loan 
EUR 
variable* 
2027 
65 
- 
- 
65 
Unsecured bank loan 
EUR 
variable* 
2029 
60 
- 
- 
60 
Unsecured bank loan 
EUR 
fixed 
2023 
8 
3 
5 
- 
Unsecured loan 
CZK 
fixed 
2024 
1 
- 
1 
- 
Liabilities from 
finance leases 
EUR 
58 
13 
29 
16 
Total interest-
bearing 
liabilities 
1,101 
91 
821 
189 
* 
Variable 
interest rate is derived as EURIBOR plus margin. All interest rates are market based. 
Terms and conditions of outstanding loans as at 31 December 2019 were as follows: 
In millions of EUR 
Cur- 
rency 
Nominal 
interest 
rate 
Year 
of 
maturity 
(up to) 
Balance at 
31/12/19 
Due within 
1 year 
Due in 1–5 
years 
Due in 
following 
years 
Unsecured bank loan 
EUR 
variable* 
2020 
55 
55 
- 
- 
Unsecured bank loan 
EUR 
variable* 
2021 
75 
- 
75 
- 
Unsecured bank loan 
EUR 
variable* 
2023 
499 
- 
498 
- 
Unsecured bank loan 
EUR 
variable* 
2024 
386 
0 
386 
- 
Unsecured bank loan 
EUR 
variable* 
2026 
48 
- 
- 
48 
Unsecured bank loan 
EUR 
variable* 
2027 
65 
- 
- 
65 
Unsecured bank loan 
EUR 
variable* 
2029 
60 
- 
- 
60 
Unsecured bank loan 
EUR 
fixed 
2020 
2 
2 
- 
- 
Unsecured bank loan 
EUR 
fixed 
2023 
10 
3 
8 
- 
Overdraft 
EUR 
variable* 
2021 
31 
31 
- 
- 
Liabilities from 
finance leases 
EUR 
76 
11 
27 
38 
Total interest-
bearing 
liabilities 
1,307 
102 
994 
211 
* 
Variable 
interest rate is derived as EURIBOR plus margin. All interest rates are market based. 
 
EPIF Facility 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 and revolving facility B with 
a committed limit of EUR 400 million due 14 January 2025. 
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, 

 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
70 
make distributions and certain other 
payments, dispose of assets, 
issue shares, provide loans or 
guarantees, 
or create security or the 
Issuer’s ability to merge 
with other companies. These restrictions are subject to 
a 
number of exceptions and qualifications. For example, the 
Issuer 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, 
certain 
net 
leverage 
limits 
set 
for 
various 
Group 
levels 
are 
met. 
The 
EPIF’s 
Facilities 
Agreement 
also 
contains change of control provisions the triggering of which may result in 
mandatory prepayment. 
Schuldschein loans 
On 
15 
April 
2019, 
EPIF 
entered 
into 
two 
Schuldschein 
loan 
agreements. 
The 
first 
loan 
amounted 
to 
EUR 134.5 million 
due on 
24 April 
2024, and 
the second 
loan amounted 
to EUR 
48 million due 
on 24 April 
2026. 
The debts of EPIF 
under the Schuldschein loan 
agreements are general, senior 
unsecured debts of the 
EPIF 
and rank equally in right of payment with EPIF’s existing and future indebtedness that is not subordinated 
in right 
of payment. 
The Schuldschein Loan 
Agreements contain certain 
restrictive provisions and 
also a 
change of control provision 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 
the 
NAFTA 
has 
been 
provided with 
a term 
facility in 
the amount 
of EUR 
175 million 
due 25 
January 2024 
and a 
revolving facility 
with a committed limit of EUR 75 million due 25 January 2024. 
The 
obligations 
of 
NAFTA 
under 
the 
NAFTA’s 
Facilities 
Agreement 
are 
general, 
senior 
unsecured 
obligations and rank equally in 
right of payment with 
the Issuer’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. 
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 2020 
31 December 2019 
Carrying 
amount 
Fair Value 
Carrying 
amount 
Fair Value 
Loans payable to credit institutions 
1,042 
1,043 
1,200 
1,208 
Issued debentures at amortised costs 
3,441 
3,501 
3,700 
3,745 
Subordinated liability 
- 
- 
0 
0 
Bank overdraft 
- 
- 
31 
31 
Revolving credit facility 
- 
- 
- 
- 
Liabilities from financial leases 
58 
61 
76 
77 
Total 
4,542 
4,606 
5,007 
5,061 
 
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). 
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020

Significant investing and financing activities not requiring cash:

In millions of EUR

31 December 2020

31 December 2019

Financing activities

270

340

Total

270

340

For the year

2020 and 2019

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 270

million (2019: EUR 340

million), of

which the

amount EUR

270 million

(2019: EUR

340 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 2020 
72 
Reconciliation of movement of liabilities 
to cash flows arising from financing activities 
Liabilities 
Equity 
Loans from 
credit 
institutions 
Loans from 
other than 
credit 
institutions 
Bank 
overdraft 
Issued 
debentures 
Finance lease 
liabilities 
Share capital / 
premium 
Reserves 
Retained 
earnings 
NCI 
Total 
Balance as at 1 January 2020 
1,200 
- 
31 
3,700 
76 
2,996 
(3,226) 
641 
2,371 
7,789 
Changes from financing cash flows 
Proceeds from loans and borrowings 
760 
1 
46 
500 
- 
- 
- 
- 
- 
1,307 
Repayment of borrowings 
(919) 
- 
(77) 
(750) 
- 
- 
- 
- 
- 
(1,746) 
Transaction cost related to loans and borrowings 
- 
- 
- 
(4) 
- 
- 
- 
- 
- 
(4) 
Payment of finance lease liabilities 
- 
- 
- 
- 
(14) 
- 
- 
- 
- 
(14) 
Set-off of dividends with loans provided 
- 
- 
- 
- 
- 
- 
- 
- 
(270) 
(270) 
Dividend paid 
- 
- 
- 
- 
- 
- 
- 
(1,128) 
(106) 
(1,234) 
Total change from financing cash flows 
(159) 
1 
(31) 
(254) 
(14) 
- 
- 
(1,128) 
(376) 
(1,961) 
Changes arising from obtaining or losing of control of 
subsidiaries 
- 
- 
- 
- 
(10) 
- 
- 
- 
- 
(10) 
Total effect of changes in foreign exchange rates 
(1) 
- 
- 
(5) 
- 
- 
25 
- 
- 
19 
Other changes 
Liability related 
Interest expense 
18 
- 
- 
89 
2 
- 
- 
- 
- 
109 
Interest paid 
(16) 
- 
- 
(89) 
(1) 
- 
- 
- 
- 
(106) 
Lease liability (impact of IFRS16) 
- 
- 
- 
- 
5 
- 
- 
- 
- 
5 
Total liability-related other changes 
2 
- 
- 
- 
6 
- 
- 
- 
- 
8 
Total equity-related other changes 
- 
- 
- 
- 
- 
630 
1,131 
1,017 
2,778 
Balance at 31 December 2020 
1,042 
1 
- 
3,441 
58 
2,996 
(2,571) 
644 
3,012 
8,623 

 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
73 
Reconciliation of movement of liabilities 
to cash flows arising from financing activities 
Liabilities 
Equity 
Loans from 
credit 
institutions 
Loans from 
other than 
credit 
institutions 
Bank 
overdraft 
Issued 
debentures 
Finance lease 
liabilities 
Share capital / 
premium 
Reserves 
Retained 
earnings 
NCI 
Total 
Balance as at 1 January 2019 
1,778 
- 
12 
3,029 
- 
2,996 
(3,931) 
674 
1,495 
6,053 
Changes from financing cash flows 
Proceeds from loans and borrowings 
1,025 
- 
31 
1,170 
- 
- 
- 
- 
- 
2,226 
Repayment of borrowings 
(1,600) 
- 
(12) 
(499) 
- 
- 
- 
- 
- 
(2,111) 
Transaction cost related to loans and borrowings 
(5) 
- 
- 
(8) 
- 
- 
- 
- 
- 
(13) 
Payment of finance lease liabilities 
- 
- 
- 
- 
(13) 
- 
- 
- 
- 
(13) 
Set-off of dividends with loans provided 
- 
- 
- 
- 
- 
- 
- 
- 
(340) 
(340) 
Dividend paid 
- 
- 
- 
- 
- 
- 
- 
(450) 
(44) 
(494) 
Total change from financing cash flows 
(580) 
- 
19 
663 
(13) 
- 
- 
(450) 
(384) 
(745) 
Total effect of changes in foreign exchange rates 
1 
- 
- 
6 
- 
- 
(16) 
- 
- 
(9) 
Other changes 
Liability related 
Interest expense 
24 
- 
- 
106 
2 
- 
- 
- 
- 
132 
Interest paid 
(23) 
- 
- 
(104) 
(1) 
- 
- 
- 
- 
(128) 
Lease liability (impact of IFRS16) 
- 
- 
- 
- 
88 
- 
- 
- 
- 
88 
Total liability-related other changes 
1 
- 
- 
2 
89 
- 
- 
- 
- 
92 
Total equity-related other changes 
- 
- 
- 
- 
- 
721 
417 
1,260 
2,398 
Balance at 31 December 2019 
1,200 
- 
31 
3,700 
76 
2,996 
(3,226) 
641 
2,371 
7,789 

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
74 
26. 
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 2020 
40 
68 
182 
1 
31 
322 
Provisions made during the year 
6 
84 
10 
- 
1 
101 
Provisions used during the year 
(2) 
(65) 
(3) 
- 
(3) 
(73) 
Provisions released during the year 
- 
- 
- 
- 
(1) 
(1) 
Unwind of discount
(1)
- 
- 
2 
- 
- 
2 
Disposed entities 
- 
(18) 
(2) 
- 
(6) 
(26) 
Effect of movements in foreign 
exchange rates 
(1) 
(3) 
(1) 
- 
- 
(5) 
Balance at 31 December 2020 
43 
66 
188 
1 
22 
320 
Non-current 
42 
- 
183 
1 
21 
247 
Current 
1 
66 
5 
- 
1 
73 
(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 2019 
36 
40 
195 
1 
33 
305 
Provisions made during the year 
4 
67 
3 
- 
5 
79 
Provisions used during the year 
(1) 
(39) 
(3) 
- 
(1) 
(44) 
Provisions released during the year 
- 
- 
(17) 
- 
(7) 
(24) 
Unwind of discount
(1)
- 
- 
3 
- 
- 
3 
PPA correction 
- 
- 
2 
- 
- 
2 
Effect of movements in foreign 
exchange rates 
1 
- 
(1) 
- 
1 
1 
Balance at 31 December 2019 
40 
68 
182 
1 
31 
322 
Non-current 
39 
- 
177 
1 
22 
239 
Current 
1 
68 
5 
- 
9 
83 
(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 
provision 
for 
employee 
benefits 
in 
the 
amount 
of 
EUR 
43 
million 
(2019: 
EUR 
40 
million) 
were 
recorded 
mainly 
by 
Stredoslovenská 
energetika, 
a.s., 
Stredoslovenská 
distribučná, 
a.s., 
NAFTA 
a.s., 
NAFTA Germany GmbH, SPP – distribúcia, a.s. and eustream, a.s. 
The most 
significant provisions in 
amount of 
EUR 14 million 
(2019: EUR 
13 million) were 
recorded by 
NAFTA 
Germany 
and 
its 
subsidiaries 
and 
in 
amount 
of 
EUR 
12 
million 
(2019: 
EUR 
11 
million) 
by 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
75 
Stredoslovenská 
energetika 
Holding, 
a.s. 
and 
Stredoslovenská 
distribučná, a.s. 
(former 
Stredoslovenská 
energetika – Distribúcia, a.s.).
 
i.
 
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 2020, the companies within the SSE Holding Group 
signed individual collective agreements for the 
period 2020 
– 2022, 
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 SSE Holding Group also pays benefits for work 
and life anniversaries: 
●
 
one monthly wage after 25 years of service; 
●
 
40% to 110% of the employee’s monthly 
salary depending on seniority 
in the Group at 
the age of 
50. 
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. 
ii.
 
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. 
 
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. 
Provision for restoration and decommissioning 
The provision 
of EUR 
187 million 
(2019: 182 
million) was 
primarily recorded 
by NAFTA 
a.s. EUR 
92 
million 
(2019: 
EUR 
90 
million), 
NAFTA 
Germany 
GmbH 
EUR 
71 
million 
(2019: 
EUR 
66 
million), 
POZAGAS 
a.s. 
EUR 
12 
million 
(2019: 
EUR 
12 
million), 
eustream, 
a.s. 
EUR 
6 
million 
(2019: 
EUR 
6 
million) and SPP Storage, s.r.o. EUR 4 million (2019: EUR 4 million). 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
76 
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 (2020: 
1.12%; 2019: 1.12%). 
NAFTA a.s. currently has 
124 production wells in addition to 240 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 
(2020: 
0.80%; 2019: 
1.12%). 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 2020 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
 
(
2020
:
 
0
.
90
%;
 
2019:1.29%). 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 2061. 
SPP Storage, s.r.o. 
(“SPP Storage”) currently has 
41 production wells and 
storage facility. 
SPP Storage’s 
provision 
for 
decontamination 
and 
restoration 
resulted 
from 
a 
legislative 
requirement 
to 
dismantle 
an 
underground
 
storage
 
facility,
 
mainly
 
production
 
wells
 
and
 
storage
 
wells
 
after
 
the
 
operation
 
of
 
the
 
underground storage facility is discontinued. 
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 
(2020: 
1.73%; 2019: 
1.92%). 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 on 
the basis of 
the actual costs 
for the 
abandonment and restoration 
of similar storage 
wells in the 
Czech Republic. 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. 
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 
2020 
2019 
Profit (loss) 
Profit (loss) 
Decrease of expected cost of 10% 
16 
15 
Increase of expected costs of 10% 
(16) 
(15) 
Increase of inflation rate of 1% 
(40) 
(39) 
Increase of discount rate of 1% 
30 
28 

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
77 
 
27. 
Deferred income 
In millions of EUR 
31 December 2020 
31 December 2019 
Government grants 
90 
91 
Other deferred income 
19 
22 
Total 
109 
113 
Non-current 
85 
88 
Current 
24 
25 
Total 
109 
113 
 
Balance of government grants in amount 
of EUR 90 million (2019: EUR 
91 million) is mainly represented 
by Elektrárny Opatovice, 
a.s. of EUR 
19 million 
(2019: EUR 
21 million), Alternative 
Energy, s.r.o. of EUR 
3 million 
(2019: EUR 
3 million), 
eustream, a.s. 
of EUR 
58 million 
(2019: EUR 
59 million) 
and United 
Energy, 
a.s. of EUR 7 
million (2019: EUR 5 
million). Elektrárny Opatovice, a.s. and 
Alternative Energy, 
s.r.o. were provided with 
government grants to 
reduce emission pollutions 
and to build 
biogas facility. This 
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 
government 
grants 
recognised 
by 
eustream 
includes 
the 
grants 
allocated 
by 
the 
European 
Commission for various business projects. 
Balance of other deferred income 
in amount of EUR 19 
million (2019: EUR 22 million) 
consists mainly of 
deferred income recognized 
by EP 
Cargo a.s. 
in the amount 
of EUR 11 
million (2019: EUR 
13 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 2020

28.

Financial instruments

Financial instruments and other financial assets

In millions of EUR

31 December 2020

31 December 2019

Assets carried at amortized cost

Loans to other than credit institutions

of which receivables from related

parties

Total

Assets carried at fair value

Hedging:

of which

Commodity derivatives cash flow hedge

(1)

Non-hedging:

of which

Currency derivatives reported as trading

Equity instruments at fair value through OCI:

of which

Shares and interim certificates at fair value through

OCI

Total

Non-current

of which owed by other Group related companies

Current

Total

(1)

Commodity derivatives designated as cash flow hedges

primarily relate to forwards for sale/purchase of electricity which

EP ENERGY

TRADING, a.s.

used to

hedge the

cash flows

arising from

purchase and

from

sale of

electricity,

as part

of its

activities

as supplier

of electricity

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

enters into short and

mid-term commodity swaps in

order to hedge

its natural gas

selling prices.

Financial instruments and other financial liabilities

In millions of EUR

31 December 2020

31 December 2019

Liabilities carried at fair value

Hedging:

of which

137

Interest rate swaps cash flow hedge

100

Commodity derivatives cash flow hedge

Currency forwards cash flow hedge

Non-hedging:

of which

143

Interest rate swaps reported as trading

143

Total

231

205

Non-current

133

161

Current

Total

231

205

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
79 
Fair values and respective nominal amounts of derivatives are disclosed 
in the following table: 
In millions of EUR 
31 December 
2020 
31 December 
2020 
31 December 
2020 
31 December 
2020 
Nominal amount 
buy 
Nominal amount 
sell 
Positive fair 
value 
Negative fair 
value 
Hedging: 
of which
2,015 
(2,020) 
24 
(88) 
Interest rate swaps cash flow hedge 
1,572 
(1,577) 
- 
(63) 
Commodity derivatives cash flow hedge 
367 
(366) 
24 
(24) 
Currency forwards cash flow hedge 
76 
(77) 
- 
(1) 
Non-hedging: 
of which
2,179 
(2,239) 
1 
(143) 
Interest rate swaps reported as trading 
2,088 
(2,150) 
- 
(143) 
Commodity derivatives reported as 
trading 
2 
(2) 
- 
- 
Currency forwards reported as 
trading 
89 
(87) 
1 
- 
Total 
4,194 
(4,259) 
25 
(231) 
In millions of EUR 
31 December 
2019 
31 December 
2019 
31 December 
2019 
31 December 
2019 
Nominal amount 
buy 
Nominal amount 
sell 
Positive fair 
value 
Negative fair 
value 
Hedging: 
of which
1,901 
(1,914) 
63 
(137) 
Interest rate swaps cash flow hedge 
1,385 
(1,385) 
- 
(100) 
Commodity derivatives cash flow hedge 
378 
(387) 
63 
(35) 
Currency forwards cash flow hedge 
138 
(142) 
- 
(2) 
Non-hedging: 
of which
1,082 
(1,080) 
1 
(68) 
Interest rate swaps reported as trading 
1,000 
(1,000) 
- 
(68) 
Commodity derivatives reported as 
trading 
3 
(3) 
- 
- 
Currency forwards reported as 
trading 
79 
(77) 
1 
- 
Total 
2,983 
(2,994) 
64 
(205) 
Swap derivatives are 
recognised in respect 
of interest rate 
swaps as described 
in detail in 
Note 33 – 
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 to 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 32 
– 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 2020 
80 
●
 
Level 3: inputs 
for the asset 
or liability that 
are not based 
on observable market 
data (unobservable 
inputs). 
31 December 2020 
In millions of EUR 
Level 1 
Level 2 
Level 3 
Total 
Financial assets carried at fair value: 
Hedging: 
of which
- 
24 
- 
24 
Commodity derivatives cash flow hedge 
- 
24 
- 
24 
Non-hedging: 
of which
- 
1 
- 
1 
Currency forwards reported 
as trading 
- 
1 
- 
1 
Equity instruments at fair value through 
OCI: 
of which 
- 
- 
12 
12 
Shares and interim certificates at fair 
value through OCI 
- 
- 
12 
12 
Total 
- 
25 
12 
37 
Financial liabilities carried at fair value: 
Hedging: 
of which
- 
88 
- 
88 
Interest rate swaps cash flow hedge 
- 
63 
- 
63 
Commodity derivatives cash flow hedge 
- 
24 
- 
24 
Currency forwards cash flow hedge 
- 
1 
- 
1 
Non-hedging: 
of which
- 
143 
- 
143 
Interest rate swaps reported as trading 
- 
143 
- 
143 
Total 
- 
231 
- 
231 
31 December 2019 
In millions of EUR 
Level 1 
Level 2 
Level 3 
Total 
Financial assets carried at fair value: 
Hedging:
of which
- 
63 
- 
63 
Commodity derivatives cash flow hedge 
- 
63 
- 
63 
Non-hedging: 
of which
- 
1 
- 
1 
Currency forwards reported 
as trading 
- 
1 
- 
1 
Equity instruments at fair value through 
OCI
:
of which
- 
- 
12 
12 
Shares and interim certificates at fair 
value through OCI 
- 
- 
12 
12 
Total 
- 
64 
12 
76 
Financial liabilities carried at fair value: 
Hedging:
 
of which
- 
137 
- 
137 
Interest rate swaps cash flow hedge 
- 
100 
- 
100 
Commodity derivatives cash flow hedge 
- 
35 
- 
35 
Currency forwards cash flow hedge 
- 
2 
- 
2 
Non-hedging: 
of which
- 
68 
- 
68 
Interest rate swaps reported as trading 
- 
68 
- 
68 
Total 
- 
205 
- 
205 
The fair value of financial instruments held at amortised costs is shown 
in the table below: 
In millions of EUR 
Carrying value 
Fair value 
31 December 2020 
31 December 2020 
Financial assets 
Loans to other than credit institutions 
37 
37 
Financial instruments held at amortised costs* 
37 
37 
Financial liabilities 
Loans and borrowings 
4,542 
4,606 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
81 
In millions of EUR 
Carrying value 
Fair value 
31 December 2019 
31 December 2019 
Financial assets 
Loans to other than credit institutions 
9 
9 
Financial instruments held at amortised costs* 
9 
9 
Financial liabilities 
Loans and borrowings 
5,007 
5,061 
* 
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 (e) 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 
2020 the Group is 
contractually obliged to 
purchase 2,007,822 pieces 
(2019: 
2,175,207 
pieces) of emission rights at an average price 25.01 EUR/piece (2019: 
24.39 EUR/piece). 
29. 
Trade payables 
and other liabilities 
In millions of EUR 
31 December 2020 
31 December 2019 
Trade payables 
135 
181 
Payroll liabilities 
45 
44 
Estimated payables 
38 
45 
Uninvoiced supplies 
27 
20 
Other tax liabilities 
9 
30 
Accrued expenses 
3 
2 
Advance payments received 
2 
2 
Liabilities to partners and associations 
1 
1 
Other liabilities 
64 
55 
Total 
324 
380 
Non-current 
4 
7 
Current 
320 
373 
Total 
324 
380 
 
Trade payables and other liabilities 
have not been 
secured as at 31 
December 2020 and 
31 December 2019. 
As at 31 December 2020 and 2019 
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 32 – Risk management policies.
 

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
82 
30. 
Commitments and contingencies 
Off balance sheet liabilities 
In millions of EUR 
31 December 2020 
31 December 2019 
Commitments 
373 
431 
Other granted guarantees and warranties 
12 
- 
Total 
385 
431 
Commitments 
Majority of 
commitments is 
represented by 
contracts to 
purchase physical 
energy 
in following 
years by 
SSE Group in amount 
of EUR 273 
million (2019: EUR 
311 million), where physical 
delivery of the 
energy 
will be realised in 
future. Contracts for purchase of 
non-current assets of EUR 21 
million (2019: EUR 24 
million) are recognised by 
SSE Group, EUR 40 
million (2019: EUR 60 
million) recognised by eustream. 
Remaining EUR 39 million (2019: EUR 36 million) arise from different type of service 
contracts. 
 
Off balance sheet asset 
In millions of EUR 
31 December 2020 
31 December 2019 
Received promises 
1,233 
1,431 
Other received guarantees and warranties 
133 
156 
Total 
1,366 
1,587 
Received promises 
Received promises mainly comprise 
the loan commitments received 
by the various companies 
within the 
Group in amount of EUR 884 million 
(2019: EUR 984 million). Contracts for the future 
sale of energy in 
amount of 
EUR 349 
million (2019: 
EUR 359 
million) and 
regulatory contingent 
assets 
related to 
green 
energy of EUR 0 million (2019: EUR 88 million) are recognised by SSE Group. 
Other received guarantees and warranties 
Other received 
guarantees and warranties 
mainly consist 
of guarantees received 
from parent company 
of 
the 
customer 
to 
secure 
trade 
receivables 
in 
the 
amount 
of 
EUR 
112 
million 
(2019: 
EUR 
89 
million) 
recognised 
by eustream, 
a.s. 
and SPP 
- 
distribúcia, a.s. 
and guarantees 
received from 
banks of 
EUR 21 
million (2019: EUR 64 million) recognised by NAFTA a.s. 
 
 
31.
 
Leases 
(a)
 
Leases as a lessee
 
The Group leases 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 2020 
83 
In millions of EUR 
Land and 
building 
Technical 
equipment, plant 
and machinery 
Total 
Balance at 1 January 2020 
37 
36 
73 
Depreciation charge for the year 
(5) 
(8) 
(13) 
Additions to right-of-use assets 
4 
3 
7 
Disposed entities 
(9) 
- 
(9) 
Effects of movements in foreign exchange rate 
- 
(1) 
(1) 
Balance at 31 December 2020 
27 
30 
57 
Balance at 1 January 2019 
41 
43 
84 
Depreciation charge for the year 
(5) 
(8) 
(13) 
Additions to right-of-use assets 
1 
2 
3 
Effects of movements in foreign exchange rate 
- 
(1) 
(1) 
Balance at 31 December 2019 
37 
36 
73 
 
Maturity analysis of lease liabilities 
In millions of EUR 
31 December 2020 
31 December 2019 
Undiscounted contractual cash flows by maturity 
Up to 3 months 
3 
4 
3 months to 1 year 
9 
10 
1–5 years 
32 
38 
Over 5 years 
17 
31 
Total undiscounted 
contractual cash flows 
61 
83 
Carrying amount 
58 
76 
Amounts recognized in profit or loss 
In millions of EUR 
2020 
2019 
Depreciation charge for the year 
(13) 
(13) 
Interest on lease liabilities 
(2) 
(2) 
Expenses related to short-term leases 
(1) 
- 
Expenses related to leases of low-value assets, excluding short-term 
leases of low-value assets 
(1) 
(1) 
Expenses related to variable lease payments not included in 
measurement of lease liability 
(1) 
(1) 
Amounts recognized in statement of cash flows 
In millions of EUR 
2020 
2019 
Total cash outflow for leases 
(14) 
(13) 
 
(b)
 
Leases as a lessor
 
Operating leases
 
During the year ended 31 December 2020, no income (2019: EUR 0 million) was recognised 
as income in 
profit or loss in respect of operating leases. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
84 
32.
 
Risk management 
This 
section 
provides 
details 
of 
the 
Group’s 
exposure 
to 
financial 
and 
operational 
risks 
and 
the 
way 
it 
manages such 
risk. 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. 
(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 2020 
85 
Credit risk by type of counterparty 
As at 31 December 2020 
In millions of EUR 
Corporate 
(non-
financial 
institutions) 
State, 
government 
Banks 
Individuals 
Other 
Total 
Assets 
Cash and cash equivalents 
1 
- 
708 
- 
- 
709 
Restricted cash 
- 
- 
3 
- 
- 
3 
Contract assets 
54 
- 
- 
- 
- 
54 
Trade receivables and other assets 
225 
91 
10 
- 
35 
361 
Financial instruments and other 
financial assets 
72 
- 
4 
- 
- 
76 
Total 
352 
91 
725 
- 
35 
1,203 
As at 31 December 2019 
In millions of EUR 
Corporate 
(non-
financial 
institutions) 
State, 
government 
Banks 
Individuals 
Other 
Total 
Assets 
Cash and cash equivalents 
- 
- 
674 
- 
- 
674 
Restricted cash 
- 
- 
4 
- 
- 
4 
Contract assets 
59 
- 
- 
- 
- 
59 
Trade receivables and other assets 
276 
140 
2 
- 
49 
467 
Financial instruments and other 
financial assets 
63 
- 
22 
- 
- 
85 
Total 
398 
140 
702 
- 
49 
1,289 

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
86 
Credit risk by location of debtor 
As at 31 December 2020 
In millions of EUR 
Slovakia 
Czech 
Republic 
United 
Kingdom 
Netherlands 
Germany 
Hungary 
Other 
Total 
Assets 
Cash and cash equivalents 
423 
258 
- 
4 
24 
- 
- 
709 
Restricted cash 
1 
2 
- 
- 
- 
- 
- 
3 
Contract assets 
22 
31 
- 
- 
- 
- 
1 
54 
Trade receivables and other assets 
170 
104 
11 
- 
8 
3 
65 
361 
Financial instruments and other financial assets 
3 
33 
4 
1 
- 
27 
8 
76 
Total 
619 
428 
15 
5 
32 
30 
74 
1,203 
As at 31 December 2019 
In millions of EUR 
Slovakia 
Czech 
Republic 
United 
Kingdom 
Netherlands 
Germany 
Hungary 
Other 
Total 
Assets 
Cash and cash equivalents 
445 
172 
- 
13 
30 
14 
- 
674 
Restricted cash 
- 
1 
- 
- 
- 
3 
- 
4 
Contract assets 
23 
27 
- 
- 
- 
- 
9 
59 
Trade receivables and other assets 
219 
127 
11 
1 
12 
20 
77 
467 
Financial instruments and other financial assets 
5 
20 
36 
- 
- 
1 
23 
85 
Total 
692 
347 
47 
14 
42 
38 
109 
1,289 

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
87 
 
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 2020 
- 
(6) 
(20) 
- 
(26) 
Transfer 
- 
1 
(1) 
- 
- 
Impairment losses recognised during the year 
- 
(2) 
(5) 
- 
(7) 
Reversal of impairment losses recognised during 
the year 
- 
1 
1 
- 
2 
Write-offs 
- 
- 
1 
- 
1 
Change due to outgoing entities 
- 
- 
1 
- 
1 
Effects of movements in foreign exchange rate 
- 
- 
- 
- 
- 
Balance at 31 December 2020 
- 
(6) 
(23) 
- 
(29) 
In millions of EUR 
12-month 
ECL 
Lifetime 
ECL not 
credit-
impaired 
Lifetime 
ECL 
credit-
impaired 
Purchased 
credit-
impaired 
Total 
Balance at 1 January 2019 
- 
(5) 
(24) 
- 
(29) 
Impairment losses recognised during the year 
- 
(1) 
(4) 
- 
(5) 
Reversal of impairment losses recognised during 
the year 
- 
- 
1 
- 
1 
Write-offs 
- 
- 
7 
- 
7 
Effects of movements in foreign exchange rate 
- 
- 
- 
- 
- 
Balance at 31 December 2019 
- 
(6) 
(20) 
- 
(26) 
 
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 2020 and 2019 were as follows: 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
88 
 
In millions of EUR 
Loans to other 
than credit 
institutions 
Contract 
assets 
Trade 
receivables 
and other 
assets 
Total 
Balance at 1 January 2020 
(6) 
- 
(20) 
(26) 
Impairment losses recognised during the year 
(1) 
- 
(6) 
(7) 
Change due to outgoing entities 
- 
- 
1 
1 
Reversals of impairment losses recognised during 
the year 
- 
- 
2 
2 
Write-offs 
- 
- 
2 
2 
Effects of movements in foreign exchange rate 
- 
- 
- 
- 
Balance at 31 December 2020 
(7) 
- 
(21) 
(28) 
In millions of EUR 
Loans to other 
than credit 
institutions 
Contract 
assets 
Trade 
receivables 
and other 
assets 
Total 
Balance at 1 January 2019 
(4) 
- 
(25) 
(29) 
Impairment losses recognised during the year 
(3) 
- 
(2) 
(5) 
Reversals of impairment losses recognised during 
the year 
1 
- 
- 
1 
Write-offs 
- 
- 
7 
7 
Effects of movements in foreign exchange rate 
- 
- 
- 
- 
Balance at 31 December 2019 
(6) 
- 
(20) 
(26) 
 
Credit risk – impairment of financial assets 
As at 31 December 2020 
In millions of EUR 
Contract 
assets 
Loans to other 
than credit 
institutions 
Trade 
receivables 
and other 
assets 
Total 
Before maturity (net) 
54 
37 
355 
446 
After maturity (net) 
- 
- 
6 
6 
Total 
54 
37 
361 
452 
A – Assets (gross) 
 
- before maturity 
54 
44 
359 
457 
 
- after maturity <30 days 
- 
- 
3 
3 
 
- after maturity 31–180 days 
- 
- 
3 
3 
 
- after maturity 181–365 days 
- 
- 
2 
2 
 
- after maturity >365 days 
- 
- 
15 
15 
Total assets (gross) 
54 
44 
382 
480 
B – Loss allowances for assets 
 
- before maturity 
- 
(7) 
(5) 
(12) 
 
- after maturity 31–180 days 
- 
- 
(1) 
(1) 
 
- after maturity 181–365 days 
- 
- 
(1) 
(1) 
 
- after maturity >365 days 
- 
- 
(15) 
(15) 
Total loss 
allowances 
- 
(7) 
(22) 
(29) 
Total assets (net) 
54 
37 
360 
451 

 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
89 
Credit risk – impairment of financial assets 
As at 31 December 2019 
In millions of EUR 
Contract 
assets 
Loans to other 
than credit 
institutions 
Trade 
receivables 
and other 
assets 
Total 
Before maturity (net) 
59 
8 
453 
520 
After maturity (net) 
- 
- 
14 
14 
Total 
59 
8 
467 
534 
A – Assets (gross) 
 
- before maturity 
59 
14 
457 
530 
 
- after maturity <30 days 
- 
- 
11 
11 
 
- after maturity 31–180 days 
- 
- 
2 
2 
 
- after maturity 181–365 days 
- 
- 
2 
2 
 
- after maturity >365 days 
- 
- 
15 
15 
Total assets (gross) 
59 
14 
487 
560 
B – Loss allowances for assets 
 
- before maturity 
- 
(6) 
(4) 
(10) 
 
- after maturity <30 days 
- 
- 
- 
- 
 
- after maturity 31–180 days 
- 
- 
(1) 
(1) 
 
- after maturity 181–365 days 
- 
- 
(1) 
(1) 
 
- after maturity >365 days 
- 
- 
(14) 
(14) 
Total loss 
allowances 
- 
(6) 
(20) 
(26) 
Total assets (net) 
59 
8 
467 
534 
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 2020. 
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. 
 
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
90 
(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. 
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 2020 
91 
Maturities of financial liabilities 
As at 31 December 2020 
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)
4,542 
4,829 
120 
575 
2,243 
1,891 
Trade payables and other liabilities 
(3)
322 
322 
229 
89 
4 
- 
Financial instruments and financial liabilities 
231 
231 
2 
20 
192 
17 
Total 
5,095 
5,382 
351 
684 
2,439 
1,908 
Net liquidity risk position 
(3,995) 
(4,282) 
564 
(568) 
(2,373) 
(1,905) 
* 
Contract liabilities in amount of EUR 185 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 amount of EUR 884 million. 
(3)
 
Advances received in amount of EUR 2 million are excluded from the carrying amount as these items will cause no future cash outflow. 
(4)
 
Inflow/outflow of derivatives represents nominal values of derivatives. 
As at 31 December 2019 
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)
5,007 
5,400 
35 
944 
2,474 
1,947 
Trade payables and other liabilities 
(3)
378 
378 
307 
64 
7 
- 
Financial instruments and financial liabilities 
205 
228 
17 
43 
127 
41 
Total 
5,590 
6,006 
359 
1,051 
2,608 
1,988 
Net liquidity risk position 
(4,360) 
(4,791) 
604 
(851) 
(2,558) 
(1,986) 
* 
 
Contract liabilities in amount of EUR 167 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 amount of EUR 394 million. 
(3)
 
Advances received in amount of EUR 2 million are excluded from the carrying amount as these items will cause no future cash outflow. 
(4)
 
Inflow/outflow of derivatives represents nominal values of derivatives. 

 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
92 
(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 2020 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 
709 
- 
- 
- 
709 
Restricted cash 
1 
1 
1 
- 
3 
Trade receivables and other assets 
3 
- 
1 
357 
361 
Financial instruments and other financial assets
(1)
2 
35 
- 
39 
76 
Total 
715 
36 
2 
396 
1,149 
Liabilities 
Loans and borrowings
(2)
1,562 
529 
2,425 
26 
4,542 
Trade payables and other liabilities 
4 
- 
- 
320 
324 
Financial instruments and financial liabilities
(1)
71 
- 
- 
160 
231 
Total 
1,637 
529 
2,425 
506 
5,097 
Net interest rate risk position 
(922) 
(493) 
(2,423) 
(110) 
(3,948) 
Effect of interest rate swaps 
2,330 
(790) 
(1,540) 
- 
- 
Net interest rate risk position (incl. IRS) 
1,408 
(1,283) 
(3,963) 
(110) 
(3,948) 
(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 28 – Financial 
instruments. 

 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
93 
Interest rate risk exposure as at 31 December 2019 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 
674 
- 
- 
- 
674 
Restricted cash 
3 
- 
- 
1 
4 
Trade receivables and other assets 
- 
- 
- 
467 
467 
Financial instruments and other financial assets
(1)
1 
8 
- 
76 
85 
Total 
678 
8 
- 
544 
1,230 
Liabilities 
Loans and borrowings
(2)
2,075 
1,266 
1,596 
70 
5,007 
Trade payables and other liabilities 
3 
- 
- 
377 
380 
Financial instruments and financial liabilities
(1)
168 
- 
- 
37 
205 
Total 
2,246 
1,266 
1,596 
484 
5,592 
Net interest rate risk position 
(1,568) 
(1,258) 
(1,596) 
60 
(4,362) 
Effect of interest rate swaps 
2,330 
(580) 
(1,750) 
- 
- 
Net interest rate risk position (incl. IRS) 
762 
(1,838) 
(3,346) 
60 
(4,362) 
(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 28 – 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 
2020 
2019 
Profit (loss) 
Profit (loss) 
Decrease in interest rates by 1% 
(18) 
(8) 
Increase in interest rates by 1% 
17 
7 
The 
analysis 
stated 
above 
does 
not 
reflect 
the 
impact 
of 
changes 
in 
interest 
rates 
on 
the 
fair 
value 
of 
derivatives. 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
94 
(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 
borrowings 
that 
are 
denominated 
in 
currency other that the respective functional currencies of Group entities, primarily 
EUR and HUF. 
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 
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 2020 
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 
EUR 
HUF 
HRK 
Assets 
Cash and cash equivalents 
- 
144 
- 
- 
Trade receivables and other assets 
- 
205 
- 
- 
Financial instruments and other financial assets 
- 
1,792 
- 
- 
- 
2,141 
- 
- 
Off balance sheet assets 
Receivables from derivative operations 
- 
186 
13 
- 
- 
186 
13 
- 
Liabilities 
Loans and borrowings 
- 
2,702 
- 
- 
Trade payables and other liabilities 
- 
68 
- 
- 
Financial instruments and financial liabilities 
- 
59 
- 
- 
- 
2,829 
- 
- 
Off balance sheet liabilities 
Payables related to derivative operations 
- 
218 
- 
- 
- 
218 
- 
- 
Net FX risk position 
- 
(687) 
- 
- 
Effect of forward exchange contracts 
- 
(33) 
13 
- 
Effect of cash flow hedge of FX risk
(1)
- 
980 
- 
- 
Net FX risk position (incl. forward exchange 
contracts and CF hedges on FX risk) 
- 
260 
13 
- 
(1)
 
The amount relates to a cash flow hedge recognized by the Group’s 
entities in its standalone financial statements. 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
95 
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 2019 
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 
EUR 
HUF 
HRK 
Assets 
Cash and cash equivalents 
3 
6 
- 
- 
Trade receivables and other assets 
- 
2 
- 
- 
Financial instruments and other financial assets 
- 
505 
- 
- 
3 
3 
- 
- 
Off balance sheet assets 
Receivables from derivative operations 
- 
133 
9 
- 
- 
133 
9 
- 
Liabilities 
Loans and borrowings 
2 
4 
- 
- 
Trade payables and other liabilities 
- 
- 
- 
- 
Financial instruments and financial liabilities 
- 
- 
- 
- 
2 
4 
- 
- 
Off balance sheet liabilities 
Payables related to derivative operations 
- 
166 
- 
- 
- 
166 
- 
- 
Net FX risk position 
1 
(943) 
- 
- 
Effect of forward exchange contracts 
- 
(33) 
9 
- 
Effect of cash flow hedge of FX risk
(1)
- 
945 
- 
- 
Net FX risk position (incl. forward exchange 
contracts and CF hedges on FX risk) 
1 
(31) 
9 
- 
(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. 
Off-balance sheet assets and liabilities 
include payables and receivables from forward exchange 
contracts 
(refer to Note 28 – Financial instruments for more details). 
The following significant exchange rates applied during the period: 
31 December 2020 
31 December 2019 
CZK 
Average rate 
Reporting date 
spot rate 
Average rate 
Reporting date 
spot rate 
EUR 1 
26.444 
26.245 
25.672 
25.410 
 
Sensitivity analysis 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
96 
A strengthening 
(weakening) of 
the 
Czech crown, 
as indicated 
below, 
against the 
EUR and 
HUF 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. 
Effect in millions of EUR 
2020 
2019 
Profit (loss) 
Profit (loss) 
EUR (5% strengthening) 
117 
47 
HUF (5% strengthening) 
- 
- 
Effect in millions of EUR 
2020 
2019 
Other comprehensive 
income 
Other comprehensive 
income 
EUR (5% strengthening) 
- 
- 
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 
of the 
natural gas 
would have 
impact on 
the fair 
value of 
cash flow 
hedging 
derivatives of EUR 8 million (2019: 
negative EUR 7 million). 
A 5% 
change in 
the market 
of the 
electricity would 
have impact 
on the 
fair value 
of cash 
flow hedging 
derivatives of negative EUR 4 million (2019: 
EUR 6 million). 
A 5% change in the market of the electricity would have no impact on the fair value of trading derivatives 
in 2020 and 2019. 
(f)
 
Regulatory risk 
The Group is 
exposed to risks 
resulting from the 
state regulation of electricity 
selling prices by the 
states 
in which 
it undertakes 
business activities. 
In Slovakia 
electricity prices 
for households 
and small 
enterprises 
is regulated providing for a capped profit margin per MWh. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
97 
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. 
The price 
of the 
distribution 
and 
other 
components 
is 
determined 
based 
on 
the 
Slovak 
Regulatory 
Office 
for 
Network 
Industries´s (“RONI”) price decisions for 
distribution companies and the market and 
transmission system 
operator. For 
small enterprises and households, composite electricity supply contracts 
define the products 
for which price lists are issued in accordance with the RONI’s 
price decisions for the regulated entity as a 
supplier of 
electricity. The RONI 
sets a maximum 
margin per MWh 
to be 
charged by the 
supplier. Improper 
regulation could negatively influence operating performance and cash flows. 
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, the 
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, the 
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 
fully to support the pricing mechanism applied, ERO can impose significant penalties which might have a 
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 
the 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 the ERO. 
As regards electricity produced by cogeneration plants, the 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, 
which is set per MWh and granted on an annual or 
hourly basis. The price decision distinguishes between 
a basic tariff (which 
applies to cogeneration plants in general) 
and additional tariff (which applies 
only to 
some of them). 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 
that the ERO issues the price decision annually, in the autumn for the coming calendar year. 
The basic 
framework for 
the price 
regulation of 
gas supplies 
is provided 
by Act 
No. 250/2012 
Coll. on 
Regulation in Network Industries and the Regulation Policy 
for the current 2017 – 2021 regulation period. 
Details 
related to 
the scope 
and method 
of conducting 
price regulation 
are 
determined in 
the generally-
binding legal regulations issued by the RONI. 
Gas Transmission 
business is 
obliged regularly 
to submit 
tariff structure 
proposals in 
respect of 
the relevant 
regulatory period to the RONI for 
approval. The current regulatory period started 
on 1 January 2017 and 
is expected to be extended by one additional year until 31 December 2022. 
(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. 
 
 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020

(h)

Capital management

The

Group’s

policy is

maintain

strong

capital

base

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 2020

31 December 2019

Proportionate Gross Debt

3,524

3,839

Less: Proportionate cash and cash equivalents

436

358

Proportionate net debt

3,088

3,481

Proportionate EBITDA

880

887

Proportionate net debt to proportionate EBITDA

3.51

3.93

* 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

values

reported

individual

companies

(incl.

eliminations

and

consolidation

adjustments)

multiplied

effective

shareholding

the

Company

them.

2020

proportionate

EBITDA

neglects pro-forma EBITDA impacts of disposed entities that are consolidated until their respective disposal date.

The Group 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 2020

31 December 2019

Total liabilities

7,590

7,777

Less: cash and cash equivalents

709

674

Net debt

6,881

7,103

Total equity attributable to the equity holders

1,069

411

Less: Other capital reserves related to common control transactions

(4,526)

Less: amounts accumulated in equity relating to cash flow hedges

(102)

(100)

Adjusted capital

5,697

5,037

Debt to adjusted capital

1.21

1.41

(i)

Hedge accounting

The balance as at 31

December 2020 represents primarily derivative agreements to hedge

an interest rate,

an electricity price and a foreign

exchange rate, gas price and

a foreign exchange rate and the

effect from a

cash flow hedge recognised on the EPIF Group level.

The

effective

portion

fair

value

changes

financial

derivatives

designated

cash

flow

hedges

are

recognised in equity.

During the period the Group reclassified EUR

73 million (positive impact on profit or

loss) including non-

controlling interest

from hedging

reserves to profit

or loss

(2019:

EUR 36

million (positive

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:

 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
99 
In millions of EUR 
Commodity 
derivatives – 
cash flow 
hedge
(1)
Interest rate 
swaps – cash 
flow hedge 
Total 
Balance at 1 January 2020 
(2) 
(98) 
(100) 
Cash flow hedges reclassified to profit or loss 
(26) 
(10) 
(36) 
Deferred tax – cash flow hedges reclassified to profit or loss 
10 
(8) 
2 
Revaluation of cash flow hedges 
37 
5 
42 
Disposed entities 
(8) 
(1) 
(9) 
Deferred tax – cash flow hedges revaluation 
(10) 
- 
(10) 
Balance at 31 December 2020 
1 
(112) 
(111) 
(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 
Balance at 1 January 2019 
(7) 
(40) 
(47) 
Cash flow hedges reclassified to profit or loss 
(11) 
6 
(5) 
Deferred tax – cash flow hedges reclassified to profit or loss 
1 
(1) 
- 
Revaluation of cash flow hedges 
19 
(78) 
(59) 
Deferred tax – cash flow hedges revaluation 
(4) 
15 
11 
Balance at 31 December 2019 
(2) 
(98) 
(100) 
(1)
 
Including also hedge for foreign currency risk 
 
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 positive EUR 
14 million (2019: 
negative EUR 14 
million). The Group 
derecognized 
foreign 
currency 
cash 
flow 
hedge 
reserve 
of 
EUR 
10 
million 
as 
a 
result 
of 
the 
disposed 
entities. 
For 
risk 
management 
policies, 
refer 
to 
Note 
32 
(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 
negative EUR 2 million 
(2019: 
positive EUR 19 million). 
For risk management policies, refer 
to Note 32 
(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 2020 
100 
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 2020 and 
2019: 
In millions of EUR 
31 December 
2020 
31 December 
2020 
31 December 
2020 
31 December 
2020 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
2 
2 
26 
26 
3 months to 1 year 
18 
10 
231 
222 
1–5 years 
3 
11 
106 
114 
Over 5 years 
- 
1 
4 
4 
Total 
23 
24 
367 
366 
In millions of EUR 
31 December 
2019 
31 December 
2019 
31 December 
2019 
31 December 
2019 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
18 
16 
88 
88 
3 months to 1 year 
39 
18 
255 
263 
1–5 years 
6 
- 
23 
23 
Over 5 years 
- 
1 
12 
13 
Total 
63 
35 
378 
387 
 
The following tables provides details of cash flow hedge 
currency derivatives recorded by the Group as 
at 31 December 2020 and 2019: 
In millions of EUR 
31 December 
2020 
31 December 
2020 
31 December 
2020 
31 December 
2020 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
- 
- 
12 
13 
3 months to 1 year 
- 
1 
42 
42 
1–5 years 
- 
- 
22 
22 
Over 5 years 
- 
- 
- 
- 
Total 
- 
1 
76 
77 
In millions of EUR 
31 December 
2019 
31 December 
2019 
31 December 
2019 
31 December 
2019 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
- 
1 
53 
54 
3 months to 1 year 
- 
1 
55 
56 
1–5 years 
- 
- 
30 
32 
Over 5 years 
- 
- 
- 
- 
Total 
- 
2 
138 
142 
 
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 2020 
101 
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 
negative 
EUR 
4 
million 
(2019: 
negative 
EUR 
58 
million). For risk management policies, refer to Note 33 
(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 2020 and 2019: 
In millions of EUR 
31 December 
2020 
31 December 
2020 
31 December 
2020 
31 December 
2020 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
- 
- 
5 
5 
3 months to 1 year 
- 
1 
16 
17 
1–5 years 
- 
62 
1,551 
1,555 
Over 5 years 
- 
- 
- 
- 
Total 
- 
63 
1,572 
1,577 
In millions of EUR 
31 December 
2019 
31 December 
2019 
31 December 
2019 
31 December 
2019 
Positive fair 
value 
Negative fair 
value 
Nominal 
amount hedged 
(buy) 
Nominal 
amount hedged 
(sell) 
Up to 3 months 
- 
- 
8 
8 
3 months to 1 year 
- 
5 
38 
38 
1–5 years 
- 
90 
169 
169 
Over 5 years 
- 
5 
1,170 
1,170 
Total 
- 
100 
1,385 
1,385 

 
 
 
 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
102 
33.
 
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 
2020 and 
31 December 2019 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 
2020 
2020 
2019 
2019 
Ultimate shareholder 
(1)
- 
- 
- 
- 
Companies controlled by ultimate shareholders 
40 
39 
26 
36 
Companies under significant influence by 
ultimate shareholders 
3 
16 
2 
11 
Associates 
8 
- 
8 
- 
Other Related party 
- 
- 
- 
- 
Total 
51 
55 
36 
47 
(1)
 
Daniel Křetínský represents the ultimate shareholder 
(b) 
The summary of transactions 
with related parties during the 
period ended 31 December 
2020 and 
31 December 2019 was as follows: 
In millions of EUR 
Revenues 
Expenses 
Revenues 
Expenses 
2020 
2020 
2019 
2019 
Ultimate shareholder
(1)
- 
- 
- 
- 
Companies controlled by ultimate shareholders 
52 
118 
71 
91 
Companies under significant influence by 
ultimate shareholders 
26 
127 
23 
87 
Associates 
- 
- 
- 
- 
Other Related party 
- 
- 
- 
- 
Total 
78 
245 
94 
178 
(1)
 
Daniel Křetínský represents the ultimate shareholder 
Transactions with the key management personnel 
For the financial years 
ended 31 December 
2020 and 2019 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., 
Pražská 
teplárenská 
a.s. 
(until 
3 
November 
2020), 
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 
2020
2019
Nr. of personnel 
66 
65 
Compensation, fees and rewards
4 
4 
Compulsory social security contributions
1 
1 
Total 
5 
5 
Other remuneration of Group management (management of all 
components within the Group) is included 
in Note 9 – 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 2020 
103 
34.
 
Group entities 
The list of the Group entities as at 31 December 2020 and 31 December 2019 
is set out below: 
31 December 2020 
31 December 2019 
2020 
2019 
Country of 
incorporation 
Segment 
Ownership 
% 
Ownership 
interest 
Ownership 
% 
Ownership 
interest 
Consolidation 
method 
Consolidation 
method 
EP Infrastructure, a.s. * 
Czech Republic 
Holding entities 
EP Energy, 
a.s. * 
Czech Republic 
Holding entities 
100 
Direct 
100 
Direct 
Full 
Full 
AISE, s.r.o. 
Czech Republic 
Other 
80 
Direct 
80 
Direct 
Full 
Full 
Pražská teplárenská a.s.
Czech Republic 
Heat Infra 
- 
- 
100 
Direct 
- 
Full 
PT Koncept, a.s.
Czech Republic 
Heat Infra 
- 
- 
100 
Direct 
- 
Full 
TERMONTA PRAHA a.s. 
Czech Republic 
Heat Infra 
- 
- 
100 
Direct 
- 
Full 
ENERGOPROJEKTA plan 
s.r.o. 
Czech Republic 
Heat Infra 
- 
- 
50.5 
Direct 
- 
Full 
PT Transit, a.s.
(1)
Czech Republic 
Heat Infra 
- 
- 
100 
Direct 
- 
Full 
Teplo Neratovice, spol. s r.o. 
Czech Republic 
Heat Infra 
- 
- 
100 
Direct 
- 
Full 
PT Distribuční, s.r.o.
Czech Republic 
Heat Infra 
- 
- 
85 
Direct 
- 
Equity 
PT měření, a.s.
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Full 
Full 
Střelničná reality s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
- 
- 
Full 
- 
Malešice Reality s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
- 
- 
Full 
- 
Zálesí Reality s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
- 
- 
Full 
- 
EPRE Reality s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
- 
- 
Full 
- 
Power Reality s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
- 
- 
Full 
- 
Lirostana s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
- 
- 
Full 
- 
PT Transit, a.s.
 
(1)
Czech Republic 
Heat Infra 
- 
- 
- 
- 
- 
Full 
PT Holding Investment B.V. 
* 
Netherlands 
Heat Infra 
100 
Direct 
100 
Direct 
Full 
Full 
Pražská teplárenská Holding a.s. v likvidaci * 
Czech Republic 
Heat Infra 
- 
- 
100 
Direct 
- 
Full 
NPTH, a.s. v likvidaci * 
Czech Republic 
Heat Infra 
- 
- 
100 
Direct 
- 
Full 
United Energy, 
a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Full 
Full 
EVO - Komořany, a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Full 
Full 
Severočeská teplárenská, a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Full 
Full 
United Energy Moldova, s.r.o. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Full 
Full 
United Energy Invest, a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Full 
Full 
GABIT spol. s r.o. 
Czech Republic 
- 
100 
Direct 
100 
Direct 
At cost 
At cost 
EP Sourcing, a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Full 
Full 
EP ENERGY TRADING, a.s. 
Czech Republic 
Gas and power distribution 
100 
Direct 
100 
Direct 
Full 
Full 
VTE Moldava II, a.s. * 
Czech Republic 
Other 
100 
Direct 
100 
Direct 
Full 
Full 
MR TRUST s.r.o.* 
Czech Republic 
Other 
100 
Direct 
100 
Direct 
Full 
Full 
ARISUN, s.r.o. 
Slovakia 
Other 
100 
Direct 
100 
Direct 
Full 
Full 
Greeninvest Energy, a.s. 
Czech Republic 
Other 
41.70 
Direct 
41.70 
Direct 
Equity 
Equity 
POWERSUN a.s. 
Czech Republic 
Other 
100 
Direct 
100 
Direct 
Full 
Full 
Triskata, s.r.o. 
Slovakia 
Other 
100 
Direct 
100 
Direct 
Full 
Full 
VTE Pchery, s.r.o. 
Czech Republic 
Other 
100 
Direct 
64 
Direct 
Full 
Full 
Alternative Energy, s.r.o.
(2)
Slovakia 
Other 
90 
Direct 
- 
- 
Full 
Full 
CHIFFON ENTERPRISES LIMITED * 
Cyprus 
Other 
- 
- 
100 
Direct 
- 
Full 
Claymore Equity, s.r.o. 
* 
Slovakia 
Other 
- 
- 
100 
Direct 
Full 
Full 
Alternative Energy, s.r.o. 
Slovakia 
Other 
- 
- 
90 
Direct 
Full 
Full 
Elektrárny Opatovice, a.s. 
Czech Republic 
Heat infra 
100 
Direct 
100 
Direct 
Full 
Full 
V A H O s.r.o. 
Czech Republic 
Heat infra 
100 
Direct 
100 
Direct 
Full 
Full 
Farma Lístek, s.r.o. 
Czech Republic 
Heat infra 
100 
Direct 
- 
- 
Full 
- 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
104 
31 December 2020 
31 December 2019 
2020 
2019 
Country of 
incorporation 
Segment 
Ownership 
% 
Ownership 
interest 
Ownership 
% 
Ownership 
interest 
Consolidatio
n method 
Consolidatio
n method 
Stredoslovenská energetika Holding, a.s.
Slovakia 
Gas and power distribution 
49 
Direct 
49 
Direct 
Full 
Full 
Stredoslovenská distribučná, a.s.
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Full 
Full 
Kinet s.r.o. 
Slovakia 
Gas and power distribution 
80 
Direct 
- 
- 
Full 
- 
Kinet Inštal s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
- 
- 
Full 
- 
Elektroenergetické montáže, s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Full 
Full 
SSE - Metrológia s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Full 
Full 
Stredoslovenská energetika - Project Development, 
s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Full 
Full 
SSE-Solar, s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Full 
Full 
SPX, s.r.o. 
Slovakia 
Gas and power distribution 
33.33 
Direct 
33.33 
Direct 
Equity 
Equity 
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 
Full 
Full 
SPV100, s.r.o. 
Slovakia 
- 
100 
Direct 
100 
Direct 
At cost 
At cost 
SSE - MVE, s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Full 
Full 
Stredoslovenská energetika, a.s.
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Full 
Full 
EP ENERGY HR d.o.o. 
Croatia 
- 
100 
Direct 
100 
Direct 
At cost 
At cost 
EP Cargo a.s. 
Czech Republic 
100 
Direct 
100 
Direct 
Full 
Full 
Patamon a.s. 
Czech Republic 
- 
100 
Direct 
- 
- 
At cost 
- 
Budapesti Erömü Zrt. 
Hungary 
Heat Infra 
- 
- 
95.62 
Direct 
- 
Full 
KÖBÁNYAHÖ Kft. 
Hungary
Heat Infra 
- 
- 
25 
Direct 
- 
At cost 
Energia-pro Zrt. 
Hungary 
Heat Infra 
- 
- 
- 
- 
- 
- 
ENERGZET SERVIS a.s. 
Czech Republic 
- 
- 
- 
100 
Direct 
- 
Full 
Plzeňská teplárenská, a.s. 
Czech Republic 
Heat Infra 
35 
Direct 
35 
Direct 
Full 
Full 
Plzeňská teplárenská SERVIS IN 
a.s. 
Czech Republic 
Heat Infra 
100 
Direct 
100 
Direct 
Full 
Full 
Plzeňské služby s.r.o. 
Czech Republic 
- 
100 
Direct 
- 
- 
At cost 
- 
Plzeňské služby facility s.r.o. 
Czech Republic 
- 
100 
Direct 
- 
- 
At cost 
- 
Claymore Equity, s.r.o. 
v likvidácii 
(3)
* 
Slovakia 
Other 
100 
Direct 
- 
- 
Full 
Full 
Czech Gas Holding Investment B.V.* 
Netherlands 
Holding entities 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA a.s. 
Slovakia 
Gas storage 
40.45 
Direct 
40.45 
Direct 
Full 
Full 
Karotáž a cementace, s.r.o. 
Czech Republic 
- 
51 
Direct 
51 
Direct 
At cost 
At cost 
POZAGAS a.s. 
Slovakia 
Gas storage 
65 
Direct 
65 
Direct 
Full 
Full 
NAFTA Services, s.r.o. 
Czech Republic 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
EP Ukraine B.V. 
Netherlands 
Gas storage 
10 
Direct 
10 
Direct 
Full 
Full 
Slovakian Horizon Energy, s.r.o. 
Slovakia 
Gas storage 
50 
Direct 
- 
- 
Equity 
- 
Nafta Exploration d.o.o. 
Croatia 
Gas storage 
100 
Direct 
- 
- 
Full 
- 
NAFTA International B.V. 
* 
Netherlands 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA Germany GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA Bavaria GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA Speicher Management 
GmbH
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA Speicher GmbH&Co. 
KG
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA Speicher Inzenham 
GmbH
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA RV 
Ukraine 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
CNG Holdings Netherlands B.V. 
Netherlands 
Gas storage 
50 
Direct 
50 
Direct 
Equity 
Equity 
CNG LLC 
Ukraine 
Gas storage 
100 
Direct 
100 
Direct 
Equity 
Equity 
EPH Gas Holding B.V. 
* 
Netherlands 
Holding entities 
100 
Direct 
100 
Direct 
Full 
Full 
Seattle Holding B.V. 
* 
Netherlands 
Holding entities 
100 
Direct 
100 
Direct 
Full 
Full 
Slovak Gas Holding B.V. 
* 
Netherlands 
Holding entities 
100 
Direct 
100 
Direct 
Full 
Full 
SPP Infrastructure, a.s. 
Slovakia 
Holding entities 
49 
Direct 
49 
Direct 
Full 
Full 
eustream, a.s. 
Slovakia 
Gas transmission 
100 
Direct 
100 
Direct 
Full 
Full 
Central European Gas HUB AG 
Austria 
- 
15 
Direct 
15 
Direct 
At cost 
At cost 
eastring B.V. 
Netherlands 
Gas transmission 
100 
Direct 
100 
Direct 
Full 
Full 
Plynárenská metrológia, s.r.o. 
Slovakia 
Holding entities 
100 
Direct 
100 
Direct 
Full 
Full 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
105 
31 December 2020 
31 December 2019 
2020 
2019 
Country of 
incorporation 
Segment 
Ownership 
% 
Ownership 
interest 
Ownership 
% 
Ownership 
interest 
Consolidatio
n method 
Consolidatio
n method 
SPP - distribúcia, a.s. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Full 
Full 
SPP - distribúcia Servis, s.r.o. 
Slovakia 
Gas and power distribution 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA a.s. 
Slovakia 
Gas storage 
56.15 
Direct 
56.15 
Direct 
Full 
Full 
Karotáž a cementace, s.r.o. 
Czech Republic 
- 
51 
Direct 
51 
Direct 
At cost 
At cost 
POZAGAS a.s. 
Slovakia 
Gas storage 
65 
Direct 
65 
Direct 
Full 
Full 
NAFTA Services, s.r.o. 
Czech Republic 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
EP Ukraine B.V.
Netherlands 
Gas storage 
10 
Direct 
10 
Direct 
Full 
Full 
Slovakian Horizon Energy, s.r.o. 
Slovakia 
Gas storage 
50 
Direct 
- 
- 
Equity 
- 
Nafta Exploration d.o.o. 
Croatia 
Gas storage 
100 
Direct 
- 
- 
Full 
- 
NAFTA International B.V.* 
Netherlands 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA Germany GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA Bavaria GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA Speicher Management 
GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA Speicher GmbH&Co. 
KG 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA Speicher Inzenham 
GmbH 
Germany 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
NAFTA RV 
Ukraine 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
CNG Holdings Netherlands B.V. 
Netherlands 
Gas storage 
50 
Direct 
50 
Direct 
Equity 
Equity 
CNG LLC 
Ukraine 
Gas storage 
100 
Direct 
100 
Direct 
Equity 
Equity 
GEOTERM KOŠICE, a.s. 
Slovakia 
Holding entities 
95.82 
Direct 
95.82 
Direct 
Full 
Full 
SPP Storage, s.r.o. 
Czech Republic 
Gas storage 
100 
Direct 
100 
Direct 
Full 
Full 
POZAGAS a.s. 
Slovakia 
Gas storage 
35 
Direct 
35 
Direct 
Full 
Equity 
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 
Full 
Full 
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 
Full 
Full 
*
 
 
Holding
 
entity
 
 
(1)
 
On 1 September 2020 PT Transit , a.s. was transferred 
to Lirostana 
s.r.o. 
as a part of internal reorganization and on 3 November 2020 
was sold out of the Group. 
(2)
 
On 31 January 2020 the shares of Alternative Energy, 
s.r.o. 
were transferred to EP Energy, 
a.s. as a part of internal reorganization. 
(3)
 
On 21 May 2020 the shares of Claymore 
Equity, s.r.o. 
were transferred to EP Infrastructure, 
a.s. as a part of internal reorganizat 
ion. 
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 2020 
106 
35.
 
Litigations and claims 
Plzeňská teplárenská, a.s. (“PLTEP”) 
In August 2012, Škoda Investment 
a.s. (SI) filed a claim 
for unjust enrichment against Plzeňská 
energetika 
a.s. 
(“PE”; 
merged 
with 
Plzeňská 
teplárenská, 
a.s. 
effectively 
on 
31 
October 
2018, 
until 
then 
Plzeňská 
energetika, a.s. is 
used in the 
paragraph) for approximately 
EUR 2 million. 
This unjust enrichment 
claim 
allegedly arises from 
the fact 
that Plzeňská 
energetika a.s. 
owns and 
operates utility 
distribution systems 
(e.g., 
for 
gas, 
water 
and 
heat), 
which 
lie 
on 
the 
property 
of 
Škoda 
Investment 
a.s., 
thereby 
illegally 
restricting the 
ownership of 
Škoda Investment 
a.s. 
In February 
2016 
both parties, 
i.e. 
PE 
as 
well 
as 
SI, 
received an 
official request 
from the 
court to 
settle the 
dispute by 
mediation. Following 
this request 
the 
hearing has 
been adjourned 
until further 
notice. In 
June 2016 
SI has 
filed an 
additional claim 
for unjust 
enrichment against PE for 
approximately EUR 1 
million. Additional claim 
covers period 2013 – 
2014. The 
claim was further 
extended in 2018 
to the total 
of ca EUR 
4 million. In 
January 2018, another 
court hearing 
was held and the Court ruled in favor of Plzeňská 
energetika, a.s. SI appealed and as a result of the 
appeal, 
the legal case 
was returned back to 
the District court, the 
hearing will take place 
in April 2021. Since 
the 
legal case is still open and after considering all the circumstances Plzeňská teplárenská, a.s. reported as of 
31 December 2020 an adequate provision representing its best estimate of 
the outcome. 
Waste incineration plant project and related bank guarantee 
PLTEP 
relationships with ČKD PRAHA DIZ, a.s., the former general supplier of the project ZEVO Plzeň 
(waste incineration 
plant, “ZEVO”), are 
primarily burdened by 
the year 
2016 when PLTEP 
terminated a 
contract for 
work before 
the work 
itself was 
completed. In 
line with 
contractual documentation, 
PLTEP 
exercised a 
bank guarantee 
on completion 
of the 
work. ČKD 
PRAHA DIZ, 
a.s. has 
challenged this 
decision. 
ČKD PRAHA 
DIZ, a.s., 
which declared 
bankruptcy in 
May 2019, 
is in 
insolvency proceeding 
and currently 
represented by 
an insolvency 
administrator. 
Based on an 
internal analysis 
PLTEP 
recorded an 
accrual to 
account for 
the risk 
of the 
guarantee to 
be returned. 
In 2019, 
the accrual 
was almost 
fully used 
against a 
realized 
payment. 
PLTEP 
considers 
the 
obligation 
to 
ČKD 
PRAHA 
DIZ 
a.s. 
as 
substantially 
settled. 
However, there is additional hearing at 
the court of arbitration to take place in second quarter 
2021 which 
should deal 
with some 
additional payments 
claimed from 
PLTEP. 
Nevertheless, PLTEP 
considers these 
additional 
payments 
as 
wrongful 
and 
therefore 
believes 
that 
the 
current 
provision 
represents 
the 
best 
estimate of the potential future outcome. 
Stredoslovenská energetika Holding, a.s. Group (“SSE Holding Group”) 
The SSE Holding Group is a party to various legal proceedings with its customers who demand the return 
of payments which they 
made to SSD for 
access to the distribution 
network pursuant to 
applicable rules set 
by RONI and 
the Slovak legislation. 
The total 
amount of claims 
cannot be reliably 
and precisely 
calculated. 
Based on a legal analysis, 
the Group management concluded 
that payment of those claims 
are unlikely and 
no legal provisions were recorded as at 31 December 2020. 

Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
107 
36.
 
Subsequent events 
On 2 
March 2021, 
EP Infrastructure, 
a. s. 
successfully placed 
at par 
its offering 
of EUR 
500 million 
1.816% 
fixed rate 
unsecured notes 
due in 
February 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 
2031 Notes will 
be redeemed at 
their principal 
amount on 
2 March 2031. 
Simultaneously 
S&P Global Ratings Europe Limited affirmed EPIF’s credit rating at BBB with outlook stable.
 
On 5 March 2021, EP Infrastructure, a.s. fully repaid the revolving facility A in total amount of EUR 400 
million. 
 
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 2020.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
108 
Appendix 1 – Disposals of investments 
The following table provides further information on the amounts of assets and liabilities disposed 
as at the 
disposal date for individually significant business disposals. 
On 
3 
November 
2020, 
the 
Group 
disposed 
100% 
in 
Pražská 
teplárenská 
a.s. 
and 
its 
subsidiaries 
and 
associates. The effect of disposal is provided in the following table: 
In millions of EUR 
Net assets sold in 2020 
Property, plant, equipment, land, buildings 
(182) 
Intangible assets 
(1) 
Participation with significant influence 
(1) 
Trade receivables and other assets 
(59) 
Inventories 
(2) 
Cash and cash equivalents 
(12) 
Deferred tax asset 
(1) 
Provisions 
6 
Deferred tax liabilities 
20 
Loans and borrowings 
10 
Trade payables and other liabilities 
160 
Net identifiable assets and liabilities 
(62) 
Non-controlling interest 
- 
Pricing differences 
9 
Translation difference recycled to OCI 
(2) 
Net assets value disposed 
(55) 
Gain (loss) on disposal 
444 
 
On 3 
November 2020, the 
Group disposed 100% 
in PT Transit, 
a.s. The effect 
of disposal is 
provided in 
the following table: 
In millions of EUR 
Net assets sold in 2020 
Property, plant, equipment, land, buildings 
(30) 
Trade receivables and other assets 
(44) 
Cash and cash equivalents 
(1) 
Deferred tax liabilities 
5 
Net identifiable assets and liabilities 
(70) 
Non-controlling interest 
- 
Translation difference recycled to OCI 
- 
Net assets value disposed 
(70) 
Gain (loss) on disposal 
99 
 
 
 

 
 
 
 
 
Notes to the consolidated financial statements of EP Infrastructure, a.s. as of and for the year ended 31 December 2020 
109 
On 2 December 
2020, the Group 
disposed 95.62% in 
Budapesti Erőmű Zrt. 
and Energia-pro Zrt. The 
effect 
of disposal is provided in the following table: 
In millions of EUR 
Net assets sold in 2020 
Property, plant, equipment, land, buildings 
(43) 
Intangible assets 
(7) 
Trade receivables and other assets 
(23) 
Financial instruments – assets 
(6) 
Inventories 
(7) 
Cash and cash equivalents 
(33) 
Restricted cash 
(4) 
Deferred tax asset 
(6) 
Provisions 
20 
Deferred tax liabilities 
6 
Trade payables and other liabilities 
23 
Net identifiable assets and liabilities 
(80) 
Non-controlling interest 
3 
Translation difference recycled to OCI 
(7) 
Net assets value disposed 
(84) 
Gain (loss) on disposal 
260 
 

 
V
I.
 
Independent
 
Auditor´s
 
Report
 
to
 
the
 
Statutory
 
Financial
 
Statements

 
V
I
I
.
 
Statutory
 
Financial
 
Statements
 
and
 
Notes
 
to
 
the
 
Statutory
 
Financial
 
Statements

EP Infrastructure, a.s.

FINANCIAL STATEMENTS

IN ACCORDANCE WITH IFRS

AND INDEPENDENT AUDITOR’S REPORT

AS OF 31 DECEMBER 2020

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 
Statement of financial position
As at 31 December 2020
In thousands of 
CZK
Note 
31.12.2020 
31.12.2019 
Assets 
Equity investments 
6 
136,162,676 
135,751,879 
Property, plant and equipment 
- 
12 
Intangible assets 
1,231 
1,231 
Loans at amortised cost 
7 
41,955,799 
38,015,196 
Deferred tax assets 
16 
375,594 
328,351 
Total non-current assets
178,495,300 
174,096,669 
Inventories 
3,247 
2,882 
Trade receivables and other assets 
8 
3,996,712 
11,179,427 
Loans at amortised cost 
7 
- 
10,291,439 
Tax receivables 
8 
556 
556 
Cash and cash equivalents 
5 
421,113 
117,185 
Total current assets 
4,421,628 
21,591,489 
Total assets 
182,916,928 
195,688,158 
Equity 
9 
80,750,000 
80,750,000 
Share capital 
222,826 
222,826 
Share premium 
9 
19,157,975 
19,157,975 
Other reserves 
15,131,292 
28,040,050 
Valuation 
differences on cash flow hedges 
(1,746,861) 
(1,439,831) 
Total equity attributable to equity holders 
113,515,232 
 
126,731,020 
Liabilities 
Loans and borrowings 
11 
65,350,854 
65,775,673 
Financial instruments and financial liabilities 
11 
3,541,174 
2,730,551 
Total non 
-current liabilities 
68,892,028 
68,506,224 
Trade payables and other liabilities 
12 
20,934 
27,062 
Loans and borrowings 
11 
486,568 
422,263 
Financial instruments and financial liabilities 
11 
- 
- 
Provisions 
12 
2,166 
1,589 
Total current 
liabilities 
509,668 
450,914 
Total liabilities 
69,401,696 
68,957,138 
Total equity and liabilities 
182,916,928 
195,688,158 
The notes 
presented 
on pages 
5 to 38 
form an integral 
part of these 
financial 
statements.
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 
Statement of comprehensive 
income
For the year ended 31 December 
2020
As at 31 December 2020
In thousands of CZK
Note
2020
2019
Sales: Services 
11,818 
11,892 
Total sales
11,818
11,892
Cost of sales: Services 
(238) 
(564) 
Total cost of sales
(238)
(564)
Subtotal
11,580
11,328
Personnel expenses 
13 
(66,977) 
(65,573) 
Depreciation and 
amortisation 
-12 
(17) 
Taxes and charges 
-3 
(3) 
Other operating 
income 
18 
33 
 
434 
Other operating expenses 
18 
(45,019) 
(46,720) 
Profit (loss) from operations
(100,398)
(100,551)
Interest income under 
the effective interest 
method 
14 
1,232,829 
1,262,467 
Interest expense 
14 
(1,339,503) 
(1,087,573) 
Other finance expense 
14 
(37,603) 
(60,123) 
Foreign currency 
differences 
14 
(5,628) 
107,931 
Profit (loss) from 
derivative instruments 
14 
(1,207,458) 
93,169 
Dividend income 
14 
18,384,873 
12,866,323 
Change in allowance to 
financial instruments 
14 
(309,025) 
(53,170) 
Net finance income
16,718,485
13,129,024 
Profit (loss) before income 
tax
16,618,087
13,028,473
Income tax expenses 
15 
(24,776) 
(67,229) 
Profit (loss) from continuing 
operations
16,593,311
12,961,244
Profit (loss) for the year
16,593,311
12,961,244
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 
15 
(307,030) 
(1,278,203) 
Other comprehensive 
income for the 
year
(307,030) 
(1,278,203) 
Total comprehensive income for the year
16,286,281 
11,683,041 
Basic and diluted 
earnings per share 
in CZK
10 
51,37 
40,13 
 
The notes presented on 
pages 5 to 38 form an 
integral part of these 
financial statements.
 
 
 

 
 
 
 
 
 
 
3 
Statement of changes in equity
 
 
In thousands of CZK 
 
Share capital 
Other capital 
contributions 
Share 
premium 
Valuation 
differences on 
cash flow 
hedges 
Retained 
earnings 
Total equity 
Balance at 31 December 2018
80,750,000 
19,157,975 
222,826 
(161,628) 
26,643,391 
126,612,564 
Comprehensive income for the 
period 
Profit for the period 
- 
- 
- 
- 
12,961,244
12,961,244 
Effective portion of changes 
in 
fair value of cash flow 
hedges, net 
of tax 
-
-
-
(1,278,203) 
-
(1,278,203) 
Total comprehensive 
income 
for the period 
(1,278,203) 
(12,961,244) 
(11,683,041) 
Contributions by and 
distributions to Owners
Dividends to equity holders 
-
-
-
-
(11,564,585)
(11,564,585) 
Balance at 31 December 2019
80,750,000
19,157,975 
222,826 
(1,439,831) 
(28,040,050) 
126,731,020 
Comprehensive
income
for
the
period
 
 
Profit for the period 
- 
- 
- 
- 
16,593,311 
16,593,311 
Effective portion of changes in 
fair value of cash flow hedges, 
net of tax 
- 
- 
- 
(307,030) 
- 
(307,030) 
Total comprehensive 
income 
for the period
(307,030) 
16,593,311 
16,286,281 
Contributions by and 
distributions to Owners 
Dividends to equity holders
- 
- 
- 
(29,502,069) 
(29,502,069) 
Balance as at 31 December 2020 
80,750,000 
19,157,975 
222,826 
(1,746,861) 
15,131,292 
113,515,232 
 
 
 
The notes presented on 
pages 5 to 38 form an 
integral part of these 
financial statements.
 
 
 

 
 
 
 
 
 
 
 
 
 
4 
Cash flow statement 
As at 31 December 2020 
in thousands of CZK 
Note 
2020 
2019 
OPERATING ACTIVITIES 
Profit (loss) for 
the year 
16,593,311 
12,961,244 
Adjustments for: 
Income tax 
15 
24,776 
67,229 
Depreciation 
and amortisation 
12 
17 
Change in provisions 
577 
 
15,658 
Change in adjustments 
14 
309,025 
53,170 
Interest income 
and expense 
14 
106,674 
(174,894) 
Other net finance 
income 
14 
37,604 
60,123 
Dividend income 
14 
(18,384,873) 
(12,866,323) 
Loss on financial 
instruments 
14 
1,207,458 
(93,169) 
Unrealised foreign exchange (gains) losses, net 
(8,065) 
(82,889) 
Operating profit before changes in working capital 
(113,501) 
(91,150) 
Change in trade receivables and other assets 
5,049 
(12,428) 
Change in trade payables and other liabilities 
(6,128) 
5,994 
Change in inventories 
(365) 
2,271 
Cash generated from (used in) operations 
(114,945) 
(95,323) 
Interest paid 
5 
(1,191,080) 
(932,765) 
Income taxes 
paid 
- 
7,292 
Cash flows 
generated from 
(used in) operating 
activities
(1,306,025) 
(1,020,796) 
INVESTING 
ACTIVITIES
Dividends 
received 
14,240,990 
1,657,362 
Outflows from 
settlement of 
financial instruments 
(392,328) 
(176,185) 
Advances to 
related parties 
(3,069,121) 
(12,972,105) 
Interest 
received 
341,623 
749,759 
Repayments from 
related parties 
22,720,955 
9,279,268 
Cash flows from (used in) investing activities
33,842,119 
(1,461,901) 
FINANCING 
ACTIVITIES
Proceeds from 
loans received 
5 
18,168,296 
16,657,358 
Repayment of 
borrowings 
5 
(20,827,070) 
(32,531,140) 
Proceeds from 
debentures issued 
5 
- 
30,096,950 
Finance fees, 
charges paid 
(73,150) 
(180,502) 
Dividends paid 
5 
(29,502,069) 
(11,564,585) 
Cash flows from (used 
in) financing activities
(32,233,933) 
2,478,081 
Net increase (decrease) in cash and cash equivalents 
302,101 
(4,616) 
Cash and cash equivalents at beginning of the year 
117,185 
122,377 
Effect of exchange rate fluctuations on cash held 
1,827 
(576) 
Cash and cash equivalents at end of the year 
421,113 
117,185 
 
The notes presented on 
pages 5 to 38 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 2020 to 31 December 2020 (“2020”). The comparable 
period (“2019”) is the financial year 
from 1 January 2019 
to 31 December 2019.
 
 
Registered office
 
Pařížská 130/26
 
Josefov
 
110 00 Praha 1 
Czech Republic
 
 
The shareholders of the Company 
as at 31 December 2020 were:
 
 
Interest in share capital
Voting rights
In thousands 
CZK 
%
%
EPIF Investments 
a.s. 
55,717,500 
69% 
69% 
CEI INVESTMENTS 
S.à r.l. 
25,032,500 
31% 
31% 
Total
80,750,000
100%
100%
 
The shareholders of Energetický a průmyslový holding, a.s., the 100% owner of EPIF Investments a.s. as 
at
 
31
 
December
 
2019
 
were:
 
 
 
Interest in share capital
Voting rights
%
%
EP Investment 
S.à r.l. 
53% 
53% 
EP Investment II 
S.à r.l. 
3% 
3% 
KUKANA ENTERPRISES 
LIMITED 
44% 
44% 
Total
100%
100%
 
The
 
consolidated
 
financial
 
statements
 
of
 
the
 
widest
 
group
 
of
 
ent
ities
 
for
 
2020
 
will
 
be
 
prepared
 
by
 
EP 
Investment S.á r.l. with its 
registered office at Avenue John F. Kennedy 39, L-1855 
Luxemburg.
 
The 
consolidated financial 
statements of 
the 
widest 
group 
of 
entities for 
2019 
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 
consolidated 
annual 
report, 
will 
be 
published 
in 
the 
Commercial 
Register. 
The 
Company does 
not 
prepare an 
individual annual 
report as 
at 
the 
date 
of 
these individual 
financial 
statements, as all 
information will be 
included in the consolidated 
annual report.
 
 
 

 
6 
Members of the Board of Directors 
and Supervisory Board as 
at 31 December 2020 were: 
 
Members
 
of
 
the
 
Board
 
of
 
Directors
 
Members
 
of
 
the
 
Supervisory
 
Board 
Daniel Křetínský 
(
chairman
) 
Jan Špringl 
(
chairman
) 
Jiří Zrůst 
(
vice-chairman
) 
William David George Price 
(
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
) 
Stéphane Louis Brimont 
(
member
) 
 
On 15 
February 2021, a 
change in the 
Board of 
Directors was recorded 
in the 
Register of Companies: 
William 
George 
Price 
replaced 
Stéphan 
Lois 
Brimont 
as 
the 
member 
of 
the 
Board 
of 
Directors 
and 
Martin Gebauer became the new vice-chairman of the Supervisory Board.
 
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 International Accounting 
Standards Board 
(IASB), as adopted by 
the EU.
 
The financial statements 
were approved by 
the Board of Directors 
of the Company 
on 26 February 2021. 
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 Czech crown 
(“CZK”).
 
 
(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
 
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.
 
 
 

 
7 
i.
 
Assumptions 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:
 
●
 
Note 7 – Financial 
instruments
 
●
 
Note 11 – 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 
on 
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 
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 
reports 
sales 
of 
services 
provided 
to 
Group 
entities 
in 
the 
Czech 
Republic, 
which 
constitute a 
negligible part 
of sales. Most 
income is financial 
income and 
is described 
in detail 
in note 14 
to these financial 
statements. The 
Company’s activities 
represent one 
segment, i.e. 
holding of ownership 
interests and related 
activities.
 
(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 2020 
and that 
have thus 
been applied 
by the 
Company for 
the first 
time.
 
Amendments to 
References to the 
Conceptual Framework 
in IFRS Standards 
(Effective for 
annual 
periods beginning on 
or after 1 January 
2020)
 
Amendments 
to References 
to the 
Conceptual 
Framework 
in IFRS 
Standards 
sets 
out amendments 
to IFRS 
Standards, their 
accompanying documents 
and IFRS practice 
statements to 
reflect the 
issue of the revised 
Conceptual Framework 
for Financial Reporting 
in 2018.
 
 
 

 
8 
Some 
Standards, their 
accompanying documents 
and 
IFRS 
practice 
statements contain 
references to, 
or
 
quotatio
ns
 
from,
 
the
 
IASC’s
 
Framework
 
for
 
the
 
Preparation
 
and
 
Presentation
 
of
 
Financial
 
Statements
 
adopted
 
by
 
the
 
Board
 
in
 
2001
 
(Framework)
 
or
 
the
 
Conceptual
 
Framework
 
for
 
Financial
 
Reporting issued 
in 
2010. 
The 
amendments update 
some 
of 
those 
references 
and 
quotations so 
that 
they
 
refer
 
to
 
the
 
2018
 
Conceptual
 
Framework
 
and
 
make
 
other
 
amendments
 
to
 
clarify
 
which
 
version
 
of the 
Conceptual 
Framework is referred 
to in particular 
documents.
 
The amendments have no material impact on the Company’s financial statement
 
Amendments 
to 
IFRS 
3 
Definition 
of 
a 
business (Effective 
for 
annual 
periods 
beginning 
on 
or 
after
 
1
 
January
 
2020)
 
The 
amendments 
aim 
to 
clarify 
difficulties 
in 
the 
entities 
determining 
whether 
they 
have 
acquired 
a business 
or a 
group of 
assets. The amended 
definition emphasises that 
the output 
of a 
business is the provision 
goods 
and 
services 
to 
customers, 
while 
the 
previous 
definition 
emphasised 
a 
return 
in 
the 
form 
of 
dividends, 
lower 
costs 
or other 
economic 
benefits 
for investors 
and others. 
The amendment 
also adds 
guidance 
to help 
entities make the 
assessment, and an optional 
concentration test.
 
The amendments have no 
impact on the Company’s financial 
statements.
 
Amendments to IAS 
1 and 
IAS 8: 
Definition of Material 
(Effective for annual 
periods beginning 
on 
or after 1 January 2020)
 
The amendments clarify 
the definition of “material” 
and ensure that the 
definition is consistent 
across all 
IFRS Standards. 
The 
amended 
definition states 
that 
information is 
material if 
omitting, misstating 
or 
obscuring it could 
reasonably be 
expected to 
influence the 
decision that the 
primary users make 
based 
on
 
those
 
financial
 
statements,
 
which
 
provide
 
financial
 
information
 
about
 
a
 
specific
 
reporting
 
entity.
 
The amendments have 
no material 
impact on the Company’s financial 
statements.
 
Amendments 
to IFRS 
9, IAS 
39 and 
IFRS 
7 – 
Interest 
Rate 
Benchmark 
Reform 
(Effective 
for 
annual 
periods beginning on 
or after 1 January 
2021)
 
The 
amendments 
regulate some 
specific requirements 
for 
hedge 
accounting and 
provides relief 
from 
the
 
possible
 
accounting
 
impacts
 
of
 
the
 
uncertainty
 
caused
 
by
 
the
 
reform
 
of
 
interest
 
rate
 
benchmark
s
 
used
 
a
s
 
a
 
base
 
for
 
calculating
 
variable
 
interest
 
rat
es
 
(
such
 
as
 
inter
-
bank
 
offered
 
rates
,
 
especially
 
LIBOR). 
The amendments 
also 
require 
the disclosure 
of specific 
information 
to investors, 
who are 
directly 
affected by the 
uncertainty, about their 
hedging relationships. 
In addition, the amendments regulate 
the 
procedure of substituting existing 
interest rates with 
alternative ones and 
address the impacts on 
hedge 
accounting. The 
amendments also 
affect disclosure 
and brings 
additional requirements on 
information 
with regard to the 
uncertainty arising 
from the interest 
rate benchmark 
reform.
 
The amendments have no 
material impact on the 
Company’s financial statements. The Company has no 
financial instruments 
with variable 
interest rates 
linked to the reformed 
interest rate benchmarks.
 
 
ii.
 
Standards not yet 
effective 
 
IFRS 17 
Insurance 
contracts 
(Effective 
for annual 
periods 
beginning 
on or 
after 
1 January 
2021 
(not 
yet endorsed by the EU))
 
Insurance
 
contracts
 
combine
 
the
 
features
 
of
 
a
 
financial
 
instrument
 
and
 
of
 
contracts
 
for
 
ser
vices.
 
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
 
ser
vices
 
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 main 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 
(not yet 
endorsed by 
the EU)
 

 
9 
The amendments 
clarify 
the classification 
of debts 
and other 
liabilities 
as current 
or non-current 
and define 
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
 
with
 
a
 
maturity
 
of
 
up
 
to
 
one
 
year)
 
or
 
 
non
-
current.
 
The
 
amendments
 
specify
 
the
 
classification
 
requirement
s
 
for
 
debt
 
instruments
 
that
 
the Company can 
settle by capitalisation.
 
 
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 (not 
yet endorsed by 
the EU))
 
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.
 
The 
amendments will 
have no material 
impact on the Company’s financial 
statements
 
Amendments
 
to
 
IFRS
 
16
 
–
 
Covid
-
19
-
Related
 
Rent
 
Concessions
 
(effective
 
for
 
annual
 
periods
 
beginning on or 
after 1 July 2020)
 
The amendments 
exempt lessees 
from having to 
consider individual 
lease contracts 
to determine 
whether 
rent concessions 
occurring as 
a direct consequence 
of the Covid-19 
pandemic are 
lease modifications 
and 
allows
 
lessees
 
to
 
account
 
for
 
such
 
rent
 
concessions
 
as
 
if
 
they
 
were
 
not
 
lease
 
modifications.
 
The
 
amendments do not 
amend the lessor’s 
reporting practices.
 
These amendments 
will have no material 
impact on the Company’s financial 
statements.
 
Amendments to IFRS 9, IAS 39, IFR 39, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform 
– phase 2 (effective 
for annual periods 
beginning on or 
after 1 January 
2021)
 
The 
amendments relate 
to 
the 
modification of 
financial assets, 
financial liabilities 
and lease 
liabilities 
(recognition of the modification in connection 
with the reform), specific hedge accounting requirements 
(hedge accounting is 
not terminated 
solely due 
to the 
reform; hedging 
relationship 
and documentation 
must be amended) 
as well as disclosure 
requirements under 
IFRS 7 that accompany 
the amendments.
 
These amendments 
will have no material 
impact on the Company’s financial 
statements.
 
The Company 
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 
Company elects 
to apply the 
Standards prospectively 
from 
the date of transition.
 
(g)
 
Going concern assumption
 
In 
late 
2019, 
first 
news 
concerning 
COVID 
19 
(coronavirus disease) 
started 
coming 
from 
China. 
In 
the
 
first
 
months
 
of
 
2020,
 
the
 
virus
 
spread
 
worldwide
 
and
 
caused
 
extensive
 
economic
 
damage.
 
The Company’s 
management recorded 
no 
significant decrease 
in 
sales 
with 
regard to 
the 
Company’s 
nature or deteriorating financial 
situation. The Company generated 
higher dividend income compared 
to 
2019 and, 
as 
of the 
date of 
preparation of 
the financial 
statements, records 
significant undrawn 
credit 
facilities, which 
guarantee sufficient 
liquidity. 
The 
Company’s 
management will 
continue to 
monitor 
potential impacts 
and 
take 
all 
possible 
steps 
to 
mitigate 
any 
adverse effects 
on 
the 
Company and 
its 

 
10 
employees
 
 
The management 
of the Company 
has considered 
the potential 
impacts of 
the COVID-19 
pandemic on 
its 
activities and concluded 
that they 
have no 
significant effect on 
the Company’s 
ability to 
continue as 
a 
going concern. 
The financial 
statements for 
the year ended 
31 December 
2020 were 
therefore prepared 
in 
this respect.
 
3.
 
Significant 
accounting 
policies
 
 
The Company has consistently 
applied the following 
accounting policies 
to all periods presented 
in these 
financial statements.
 
(a)
 
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.
 
(b)
 
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
 
(d)).
 
(c)
 
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 
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 
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
 

 
11 
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
 
comprehensi
ve
 
income
 
(“FVOCI”),
 
as
 
measured
 
at
 
fair
 
value
 
t
hrough
 
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
 
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.
 
 
 

 
12 
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.
 
 
(d)
 
Impairment
 
i.
 
Non-financial assets
 
The 
carrying amounts 
of the 
Company’s 
assets, 
except 
for 
deferred tax 
assets, (refer 
to 
Note 3 
(j) 
– 
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
 
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 
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
 
carr
ying
 
amount
 
does
 
not
 
exceed
 
the
 
carrying
 
amount
 
that
 
would
 
have
 
been
 
determined,
 
net of 
depreciation or 
amortisation, if no impairment 
loss had been recognised.
 
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:
 
•
 
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 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.
 
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, a financial asset is allocated 
to Stage II if there was 
a significant increase 
in credit risk 
since 
initial
 
recognition
 
or
 
to
 
Stage
 
III
 
for
 
the
 
financial
 
asset
 
has
 
been
 
credit
-
impaired.
 
 
 

 
13 
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
 
count
erparty
 
credit
 
risk,
 
the
 
individual
 
approach
 
shall
 
be
 
used,
 
and
 
the
 
financial
 
asset
 
shall
 
be
 
classified
 
in
 
Stage
 
I);
 
or
 
(b)
 
in
 
financial
 
difficulties,
 
the
 
Company
 
negotiates
 
with
 
the
 
debtor
 
about
 
debt
 
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 
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:
 
(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, whose 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 
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
 
(d)
 
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
 
(e)
 
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 
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 
losses. 
The Company 
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 
and 
the 
year-on-year 
change 
is 
recognised 
in 
the 
income 
statement. 
For 
debt 
securities
 
at
 
FVOCI,
 
the
 
loss
 
allowance
 
is
 
recognised
 
in
 
OCI.
 
(e)
 
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
.
 
 
 
 

 
14 
The Company 
derecognises 
a financial 
liability when 
its contractual 
obligations are 
discharged, cancelled 
or expire.
 
(f)
 
Derivative financial 
assets and liabilities
 
The Company holds derivative financial instruments to hedge 
its foreign currency and 
interest rate risk 
exposures.
 
Derivatives are recognised initially at 
fair value, with 
attributable transaction costs recognised in 
profit 
or
 
loss
 
as
 
incurred.
 
Subsequent
 
to
 
init
ial
 
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.
 
Cash flow hedges and 
fair value hedges
 
The majority of financial 
derivatives are held 
for hedging purposes 
but 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
 
chang
es
 
in
 
fair
 
value
 
is
 
recognised
 
in
 
profit
 
and
 
loss.
 
Hedging instruments 
consisting 
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 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
 
tra
nsaction
 
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
 
recogni
sed
 
in
 
profit
 
or
 
loss.
 
 
 

 
15 
(g)
 
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
 
econ
omic
 
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
 
expect
ed
 
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
 
pro
fit
 
or
 
loss
 
at
 
the
 
date
 
of
 
the
 
change
 
in
 
estimate
 
(see
 
below).
 
(h)
 
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,
 
associated
 
costs.
 
(i)
 
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,
 
usi
ng
 
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.
 
(j)
 
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 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
 
reportin
g
 
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 

 
16 
that
 
they
 
will
 
not
 
be
 
revers
ed
 
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,
 
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 unused 
tax
 
losses
 
or
 
temporary
 
differences
 
will
 
be
 
realised.
 
(k)
 
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.
 
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
 
informa
tion
 
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 
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 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
17 
of the Company and the 
credit risk of the counterparty 
when appropriate.
 
 
5.
 
Cash and cash 
equivalents
 
 
In thousands of 
CZK
31 December 
2020
31 December 
2019
Cash on hand 
16 
- 
Current accounts 
with banks 
421,097 
117,185 
Total cash and cash equivalents
421,113
117,185
 
 
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 1 January 2020 
17,306,765 
- 
48,891,171 
28,040,050 
94,237,986 
Changes from financing cash flows
Received loans and borrowings 
18,168,296 
- 
- 
- 
18,168,296 
Repayment of borrowings 
(20,827,070) 
- 
- 
- 
(20,827,070) 
Dividends paid 
- 
- 
(29,502,069) 
(29,502,069)
Total change from financing cash 
flows 
(2,658,774) 
- 
- 
(29,502,069) 
(32,160,843) 
Total effect of changes in foreign 
exchange rates
602,716 
- 
1,620,271 
- 
2,222,987 
Other liability changes 
Transaction costs related to loans and 
borrowings (net) 
(73,150) 
- 
- 
- 
(73,150)
Interest expense 
378,812 
- 
960,691 
- 
1,339,503 
Interest paid 
(262,859) 
- 
(928,221) 
- 
(1,191,080) 
Total liability-related 
other changes 
42,803 
- 
32,470 
- 
75,273 
Profit for the year 
- 
- 
- 
16,593,311 
16,593,311 
Balance at 31 December 2020 
15,293,510 
- 
50,543,912 
15,131,292 
80,968,714 
 
 
Loans from 
credit 
institutions 
Loans from 
other than 
credit 
institutions 
Issued 
debentures 
Retained 
earnings 
Total liabilities 
and retained 
earnings
Balance as at 1 January 2019 
33,403,902
-
19,387,866
26,643,391
79,435,159
Changes from financing cash flows
Received loans and borrowings 
16,657,358 
-
30,096,950 
- 
46,754,308 
Repayment of borrowings 
(32,531,140) 
-
-
-
(32,531,140)
Dividends paid 
-
-
-
(11,564,585) 
(11,564,585)
Total change from financing cash 
flows 
(15,873,782)
-
30,096,950
(11,564,585)
2,658,583
Total effect of changes in foreign 
exchange rates
(148,714)
-
(604,457)
-
(753,171)
Other liability changes 
Transaction costs related to loans and 
borrowings (net) 
(18,033) 
-
(200,604) 
-
(218,637)
Interest expense 
538,693 
-
548,880 
-
1,087,573
Interest paid 
(595,301) 
-
-
(932,765)
Total liability-related 
other changes 
(74,641)
-
10,812
-
(63,829)
Profit for the year 
-
-
-
12,961,244
12,945,183
Balance at 31 December 2019 
17,306,765
-
48,891,171
28,040,050
94,237,986
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
18 
6.
 
Equity
 
investments
 
 
Equity investments 
 
 
Company name 
Total profit 
(+) loss 
(-) for the period 
01/1/2020- 
31/12/2020* (in 
TCZK/TEUR) 
Equity at 
31/12/2020 
(in TCZK/TEUR) 
Net value of 
equity investment 
at 31/12/2020 
(in TCZK) 
Net value of equity 
investment at 
31/12/2019 
(in TCZK) 
Claymore Equity, s.r.o 
v likvidácii* 
(„Claymore“) 
EUR (41) 
EUR (1,043) 
0 
- 
EP Energy, a.s. („EPE“)* 
CZK 21,969,103 
CZK 29,302,662 
34,873,855 
34,731,570 
Czech Gas Holding Investment B.V. 
(„CGHI“)* 
EUR 28,311 
EUR 144,188 
9,623,500 
9,623,464 
EPH Gas holding B. V. 
(„EPHGH“)* 
EUR 130,553 
EUR 230,254 
90,002,753 
89,734,277 
Plzeňská teplárenská, a.s. („PT“)* 
CZK 288,969 
CZK 4,847,028 
1,662,568 
1,662,568 
Total equity investments
136,162,676 
135,751,879 
 
*Data from unaudited 
financial statements 
as of 31 December 2020. 
 
All equity investments are fully owned by the Company, 
with the exception of 
Plzeňská teplárenská, 
a.s. 
(35%, with managerial 
control).
 
 
As at 
31 December 
2020, 
the Company 
established 
an allowance 
for investments 
for Claymore 
of CZK 508 
thousand.
 
As at 31 December 2019, 
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 
Claymore Equity, s.r.o 
v likvidácii 
Pribinova 25, 811 09 Bratislava, Slovak Republic 
Plzeňská teplárenská, 
a.s. 
Doubravecká 2760/1, Východní 
Předměstí, 301 00 Plzeň, Czech 
Republic 
 
In 2020, there were the following 
changes in the 
non-current financial 
assets: 
 
On 21 May 2020, the Company acquired 100% of the equity investment in Claymore
 
 
7.
 
Financial 
instruments
 
 
Loans
 
at
 
amortised
 
cost
 
 
In thousands of CZK 
31 December 
2020 
31 December 2019 
Loans to other than credit institutions: 
Czech Gas Holding Investment B.V. 
(„CGHI“) 
1,080 
- 
EPH Gas Holding B. V. 
(„EPHGH“) 
18,650,720 
8,366,112 
Slovak Gas Holding B.V. 
(„SGH“) 
21,374,747 
23,262,887 
EP Energy, a.s. („EPE“) 
1,929,252 
16,677,636 
Total 
41,955,799 
48,306,635 
Non-current 
41,955,799 
38,015,196 
Current 
- 
10,291,439 
Total 
41,955,799 
48,306,635 
Impairment arising from expected losses is described in Note 19a. 
 
Fair value information
 
Fair values and the 
respective loans 
carried at amortised 
costs are disclosed 
in the following table:
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
19 
In thousands of CZK 
31 December 2020
31 December 2019
Carrying
amount
Fair value
Carrying
amount
Fair value
Loan 
Claymore 
0 
27,913 
- 
Loan 
CGHI 
1,080 
1,082 
- 
Loan 
EPHGH 
18,650,720 
19,011,244 
 
8,366,112 
8,366,112 
Loan 
SGH 
21,374,747 
21,621,325 
23,262,887 
 
23,339,110 
Loan 
EPE 
1,929,252 
1,923,336 
16,677,636 
 
16,781,380 
Total 
41,955,799 
42,584,900 
 
48,306,635 
 
48,486,602 
 
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.
 
Trade receivables and other assets
 
 
In thousands of CZK
31 December 2020
31 December 2019
Trade receivables 
13,597 
16,126 
Estimated receivables 
248 
294 
Advance payments 
4,196 
6,670 
Tax receivables 
556 
556 
Dividends declared 
3,978,671 
11,156,337 
Total 
3,997,268
11,179,983 
Current 
3,997,268
11,179,983
Total 
3,997,268 
11,179,983 
 
At 31 December 2020 
and at 31 December 
2019 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 19 – Risk 
management policies 
and disclosures.
 
 
9.
 
Equity
 
Share capital and share premium
 
 
The
 
authorised,
 
issued
 
and
 
fully
 
paid
 
share
 
capital
 
of
 
the
 
Company
 
as
 
at
 
31
 
December
 
2020
 
and
 
31 December 2019 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
 
connected
 
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 
of nominal value CZK 
250 
at meetings of the 
Company’s shareholders.
 
 
31 December 2020 
and 2019
Number of shares 
Ownership 
interest 
Voting 
rights 
In thousands of 
shares
250 CZK 
% 
% 
Shares A
 
Shares B 
EPIF Investments a.s. 
222,870 
 
69.00 
69.00 
CEI INVESTMENTS S.à r.l. 
100,130 
31.00 
31.00 
Total
222,870 
100,130 
100.00 
100.00 
 
Other reserves 
As of 
31 December 
2020 and 
31 December 
2019, other 
reserves 
consist 
of an 
additional 
equity 
contribution 
in the form of 
loan capitalisation.
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20 
10.
 
Earnings per share
 
Basic earnings per share
 
Basic earnings 
per share in 
CZK per 1 
share of CZK 
250 (2019: in 
CZK per 1 
share of CZK 
250) nominal 
were equal to 51.37 
CZK per 1 share (2019: 
40.13 CZK per 1 share).
 
The calculation 
of basic 
earnings 
per share 
as at 
31 December 
2020 and 
as at 
31 December 
2019 was 
based 
on 
profit 
attributable 
to 
ordinary 
shareholders 
of 
CZK 
16,593,311 
thousand 
(2019: 
CZK 12,961,244 
thousand),
 
and
 
a
 
weighted
 
average
 
number
 
of
 
ordinary
 
shares
 
outstanding
 
of
 
323,000,000
 
(2019:
 
323,000,000).
 
 
Weighted average number of 
ordinary shares 2020 and 
2019 
 
In pieces
Nominal 
Weighted 
Issued shares
323,000,000 
323,000,000 
of which as at 16 February 
2017 classified as: 
 
 
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 
 
 
Diluted earnings 
per share
 
As the 
Company issued no 
convertible debentures or 
other financial instruments with 
dilutive potential 
effects on ordinary 
share, diluted earnings 
per share are equal 
to the basic earnings 
per share.
 
 
 
11.
 
Financial instruments and 
financial liabilities
 
 
 
Financial liabilities carried at amortised cost
 
In thousands of 
CZK
31 December 
2020
31 December 
2019
Loans payable 
to credit institutions 
15,293,510 
17,306,765 
Issued debentures 
50,543,912 
48,891,171 
Other liabilities 
65,837,422 
66,197,936 
Non-current 
65,350,854 
65,775,673 
Current 
486,568 
422,263 
Total 
65,837,422 
66,197,936 
The weighted average interest rate on loans for 2020 was 1.831% 
(2019: 1.775%).
 
Financial liabilities carried at fair value 
In thousands of 
CZK
31 December 
2020
31 December 
2019
Hedging: 
of which
1 524 744 
1 291 652 
Interest rate swaps related to cash flow 
hedge 
1 524 744 
1 291 652 
Risk management purpose: 
of which
2 016 430 
1 438 899 
Interest rate swaps reported as trading
2 016 430 
1 438 899 
Total
3 541 174 
2 730 551 
Non-current 
3 541 174 
2 730 551 
Current
 
- 
- 
Total 
3 541 174 
2 730 551 
 
Derivative 
financial 
instruments 
held 
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
).
 
 

 
 
 
 
21 
Issued debentures at amortised 
cost
 
Details about debentures 
issued as at 31 December 
2020 are presented 
in the following table:
 
 
In thousands of CZK 
Principal 
Accrued 
interest 
Unamortised 
transaction 
costs 
Maturity 
Interest rate 
(%) 
Effective 
interest rate 
(%) 
EPIF 2024 Notes
19,683,750 
222,847 
(80,685) 
26/04/2024 
1.659 
1.786 
 
EPIF 2026 Notes
15,747,000 
112,144 
(80 686) 
30/07/2026 
1.698 
1.795 
 
2027 Private 
Offering
1,837,150 
9,322 
(22 762) 
08/04/2027 
2.150 
2.36 
EPIF 2028 Notes
13,122,500 
61,310 
(67,978) 
09/10/2028 
2.045 
2.117 
Total 
50 390 400 
405 623 
(252 111 
) 
- 
- 
- 
 
 
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
 
Compan
y
 
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
 
Company
 
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
 
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. 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.
 
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
 
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
 
the
 
principal
 
amount
 
of
 
100
 
%
 
of
 
the
 
prematurely
 
redeemed,
 
plus
 
accrued
 
and
 
unpaid
 
interest
 
and
 
additional
 
amounts,
 
if
 
any.
 
 
 

 
22 
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. These costs are allocated to 
the 
income statement 
over the term of 
the 2026 Notes through 
the effective interest 
rate of 1.795%.
 
 
 
Private Offering
 
On 8 April 2019, 
the Company placed 
EUR 70 million 
eight-year notes, 
which were accepted 
for trading 
at the 
Third Market operated by 
the Vienna Stock 
Exchange. The notes 
bear interest at 
6M EURIBOR 
+2.15%, 
are unsecured and due 
in April 2027 (“Private 
Offering”).
 
The Company 
may prematurely 
redeem 
all, but 
not part, 
of the 
Private 
Offering 
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 
Private Offering 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 
Private Offering prematurely at 
the principal 
amount of 
100 % 
of the 
prematurely 
redeemed,
 
plus
 
accrued
 
and
 
unpaid
 
interest
 
a
nd
 
additional
 
amounts,
 
if
 
any.
 
The Private Offering is stated net of debt issue costs of CZK 27,621 thousand. These costs are allocated 
to 
the income 
statement over 
the term 
of the Private 
Offering through 
the effective 
interest rate 
of 2.36%.
 
 
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
 
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
 
the
 
principal
 
amount
 
of
 
100
 
%
 
of
 
the
 
prematurely
 
redeemed,
 
plu
s
 
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.
 
The 2028 Notes are stated net 
of debt issue costs of 
CZK 75,261 thousand. These costs are allocated to 
the 
income statement 
over the term of 
the 2028 Notes through 
the effective interest 
rate of 2.117%.
 
 
 
 

 
 
 
23 
Loans at amortised 
cost
 
Details about the 
loans as at 31 December 
2020 are presented 
in the following overview:
 
 
 
In thousands of 
CZK
Principal
Accrued
Unamortised
Maturity
Interest rate
interest
transaction
(%)
costs
Bank loan 
10 498 000 
15/01/2025 
Variable* 
Schuldschein loan 
I 
1 259 760 
24/04/2026 
Variable* 
Schuldschein loan 
II 
3 529 953 
24/04/2024 
Variable* 
Total
15,287,713
80,944
(75 147)
-
* Variable interest rate is derived from EURIBOR plus margin. All 
rates are set at arm’s length.
 
 
Facilities Agreement concluded 
by the Company
 
The Company 
is a 
party 
to a 
senior 
term and 
revolving 
facilities 
agreement 
dated 19 
July 
2018 with 
a group 
of financing banks 
(the “Company’s 
Facilities Agreement”), pursuant to which 
the 
Company has been 
provided with term 
facility A in 
the amount 
of EUR 
750 million due 
on 
19 July 2022, 
term facility B 
in
 
the
 
amount
 
EUR
 
500
 
million
 
due
 
on
 
19
 
July
 
2023
 
and
 
a
 
revolving
 
facility
 
C
 
up
 
to
 
the
 
amount
 
of
 
EUR
 
250 million 
due on 19 July 2023.
 
In 2019, facility 
A in the 
amount of EUR 
750 million was repaid 
and the outstanding 
transaction costs 
relating to 
facility A were 
released in 
the income 
statement. In 
2020, facility 
B in the 
amount of CZK 
500 
million and revolving 
facility C in the 
amount of CZK 
250 million were 
refinanced through 
a senior 
term 
and
 
revolving
 
facilities
 
agreement
 
dated
 
14
 
January
 
2020
 
with
 
a
 
group
 
of
 
financing
 
banks
 
(the
 
“Company’s
 
Facilities
 
Agreement”),
 
pursuant
 
to
 
which
 
the
 
Company
 
has
 
been
 
provided
 
with
 
term
 
facility A in the amount of EUR 400 million due on 
14 January 2025 and 
a revolving 
facility B 
up to 
the 
amount of 
EUR 400 
million 
due on 14 January 2025. 
 
At 
the 
same 
time, 
the 
outstanding 
transaction 
costs 
relating 
to 
facility 
B 
in 
the 
amount 
of 
EUR 
500 million and facility C in the amount of EUR 250 million were released 
in the income statement.
 
The 
Company’s 
Facilities Agreement 
contains restrictive 
provisions which, 
among 
other things, 
limit 
the 
Company’s ability to merge with other 
companies and 
the ability of 
the EP Infrastructure, 
a.s. Group 
(“Group”)
 
to
 
incur
 
additional
 
financial
 
indebtedness,
 
perform
 
acquisitions,
 
invest
 
in
 
joint
 
ventures,
 
make
 
distributions
 
of
 
dividends
 
and
 
certain
 
other
 
payments,
 
dispose
 
of
 
assets,
 
provide
 
loans
 
or
 
guarantees,
 
or
 
create
 
security
.
.
 
These
 
restrictions
 
are
 
subject
 
to
 
a
 
number
 
of
 
exceptions
 
and
 
qualifications. For 
example, the 
Company 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,
 
certain
 
net
 
leverage
 
limits
 
set
 
for
 
various
 
Group
 
levels
 
are
 
met.
 
In
 
addition,
 
under
 
the
 
Company’s
 
Facilities
 
Agreement, if the rating of the 
Company drops below a certain level, the 
Group will become subject to 
a
 
regularly
 
tested
 
net
 
leverage
 
cove
nant
 
on
 
the
 
Group
 
level.
 
The
 
Company’s
 
Facilities
 
Agreement
 
also 
contains change 
of control provisions 
the triggering of which 
may result in mandatory 
prepayment.
 
 
Schuldschein 
loans
 
On 15 
April 2019, 
the Company 
entered into 
two Schuldschein 
loan agreements. 
The first 
loan amounted 
to 
EUR 134.5 million 
due on 
24 
April 2024, 
and 
the 
second loan 
amounted to 
EUR 
48 million 
due 
on 
24 April 2026.
 
The 
debts 
of 
the 
Company 
under 
the 
Schuldschein loan 
agreements 
are 
general 
unsecured 
debts 
of 
the
 
Company
 
and
 
rank
 
equally
 
in
 
right
 
of
 
payment
 
with
 
EPIF’s
 
existing
 
and
 
future
 
indebtedness
 
that
 
is
 
not
 
subordinated
 
in
 
right
 
of
 
payment.
 
 
 
 
 

 
 
 
 
 
 
 
 
24 
Cash flow hedges – hedge 
of foreign currency risk 
with non-derivative 
financial liability
 
The Company applies hedge accounting for 
hedging instruments designed to hedge the foreign 
currency 
risk 
of 
revenues 
denominated 
in 
a 
foreign 
currency 
(EUR). 
The 
hedging 
instruments 
are 
the relevant 
portions 
of 
the 
nominal 
values 
of 
drawn 
credit 
facilities 
in 
EUR 
in 
the 
total 
amount 
of 
EUR 
440 
million 
(at 
31 December 2019: EUR 440 million) of the total volume of drawn loan of EUR 500 million, which 
was 
refinanced
 
in
 
January
 
2020.
 
The
 
hedged
 
cash
 
inflows
 
in
 
EUR
 
which
 
the
 
Company
 
considers
 
highly
 
probable and which 
follow from dividends 
paid 
by subsidiaries are 
expected to occur 
and impact profit 
or 
loss in the 
period from 
2021 to 2033. 
As a result of the 
hedging relationship, the Company reported CZK 
452,225
 
thousand
 
in
 
equity
 
as
 
at
 
31
 
December
 
2020
 
(at
 
31
 
December
 
2019:
 
CZK
 
836,250
 
thousand),
 
including
 
the
 
related
 
deferred
 
tax
 
of
 
CZK
 
(85,923)
 
thousand
 
(at
 
31
 
December
 
2019:
 
CZK
 
(158,887)
 
thousand).
 
In
 
2020,
 
as
 
a
 
result
 
of
 
realised
 
hedged
 
cash
 
flows
 
from
 
the
 
amount
 
recognised
 
in
 
equity
 
in
 
relation
 
to
 
the
 
application
 
of
 
the
 
hedge
 
accounting,
 
CZK
 
16,625
 
thousand
 
was
 
transferred
 
to
 
income
 
accounts (2019: CZK 
77,000 thousand).
 
 
 
Cash flow
hedges 
(currency 
risk) 
Cash flow
hedges 
(currency 
risk)
– deferred tax 
Interest rate
swap 
(hedging) 
Interest rate
swap 
(hedging) – 
deferred tax 
Effect from
hedge 
accounting 
Balance at 31/12/2018
774,651
(147,185)
(974,190)
185,096
(161,628)
Utilisation of cash 
flow hedges 
(77,000) 
- 
- 
- 
(77,000) 
Revaluation of cash 
flow hedges 
138,599 
- 
- 
- 
138,599 
Deferred tax – cash flow 
hedges 
- 
(11,702) 
- 
- 
(11,702) 
Reclassified to profit 
for the period 
- 
- 
162 242 
- 
162 242 
Change in fair value 
of interest rate swaps 
- 
- 
(1,801,872) 
- 
(1,801,872) 
Deferred tax – interest 
rate swaps 
- 
- 
- 
311,530 
311,530 
Balance at 31/12/2019
836,250
(158,887)
(2,613,820)
496,626
(1,439,831)
Utilisation of cash 
flow hedges 
(16,625) 
- 
- 
- 
(16,625) 
Revaluation of cash 
flow hedges 
(367,400) 
- 
- 
- 
(367,400) 
Deferred tax – cash flow 
hedges 
- 
72,964 
-
- 
72,964 
Reclassified to profit 
for the period 
- 
- 
238,069 
- 
238,069 
Change in fair value of 
interest rate swaps 
- 
- 
(233,092) 
- 
(233,092) 
Deferred tax – interest 
rate swaps 
- 
- 
- 
(946) 
(946) 
Balance at 31/12/2020
452,225
(85,923)
(2,608,843)
495,680
(1,746,861)
 
Fair value information:
 
The fair value of interest 
bearing instruments 
held at amortised 
cost is shown in the 
table below:
 
 
 
 
 
In thousands of 
CZK
31 December 2020 
31 December 2019 
Carrying 
amount
Fair value
Carrying 
amount
Fair value
Bank loan
15,293,510 
15,208,884 
17,306,765 
17,372,178 
Issued debentures
50,543,912 
50,850,586 
48,891,171 
48,857,916 
Total
65,837,422
66,059,470
66,197,936
66,230,094
 
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
).
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25 
12.
 
Trade payables and other liabilities
 
 
In thousands of CZK 
31 December 2020
31 December 2019
Trade payables 
14,561 
21,170 
Estimated payables 
2,198 
987 
Payroll liabilities 
1,888 
2,308 
Other tax liabilities 
1,776 
2,078 
Provisions
2,166 
1,589 
Other liabilities
511 
519 
Total 
23,100 
28,651 
Current
23,100 
28,651 
Total 
23,100 
28,651 
 
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
 
payabl
es
 
and
 
other
 
liabilities
 
have
 
not
 
been
 
secured
 
as
 
at
 
31
 
December
 
2020
 
and 31 December 2019. As at 31 December 2020 and 31 December 2019, no liabilities to tax authorities 
were overdue.
 
 
13.
 
Personnel expenses
 
 
 
 
In thousands of 
CZK
2020
2019
Wages and salaries 
39,380 
38,484 
Compulsory social 
security contributions 
10,989 
10,478 
Board members’ 
remuneration 
16,600 
16,600 
Other social 
expenses 
8 
11 
Total
66,977
65,573
The average 
recalculated number of employees during 
2020 was 
18 (2019: 
21), of 
which 7 
(2019: 7) 
were executives.
 
 
14.
 
Finance income and 
expense, profit (loss) from financial 
instruments
 
 
Recognised in profit 
or loss
In thousands of 
CZK
2020 
2019 
Interest income 
(under the effective 
interest method) 
1,232,829 
1,262,467 
Net foreign 
exchange gain 
- 
107,931 
Dividend income 
18,384,873 
12,866,323 
Gain from release 
of allowances to 
loans/equity investments 
 
- 
 
- 
Finance income
 
19,617,702
 
14,236,721
Interest expense 
(under the effective 
interest method) 
(1,339,503) 
(1,087,573) 
Fees and commissions 
expense for 
payment transactions 
(37,603) 
(60,123) 
Net foreign exchange 
loss 
(5,628) 
- 
Loss from allowances 
to loans/equity investments 
 
(309,025) 
(53,170) 
Finance costs
(1,691,759)
(1,200,866)
Profit (loss) from 
hedging derivatives 
(26,379) 
(162,242) 
Profit (loss) from 
interest rate derivatives held for 
trading 
(1,181,079) 
255,411 
Profit (loss) from 
financial instruments
(1,207,458)
(93,169)
Net finance income 
(expense) recognised 
in profit or 
loss
16,718,485
13,129,024
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26 
15.
 
Income tax 
expenses 
Income tax recognised 
in profit or loss
 
 
In thousands 
of CZK
2020 
2019 
Current taxes:
Current year 
- 
- 
Adjustment for 
prior periods 
- 
- 
Total current taxes
- 
- 
Deferred taxes: 
Origination and reversal 
of temporary 
differences 
(1)
Total deferred taxes
(24,776) 
(67,229) 
Total income taxes (expense) 
recognised in the 
statement of 
comprehensive income 
for continuing 
operations 
(24,776) 
(67,229) 
 
 
(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 2020 (19% for 
2019).
 
 
Income tax recognised 
in other comprehensive 
income 
 
In thousands of 
CZK 
2020 
Gross 
Income tax 
Net of income tax 
Effective portion of changes in fair value of hedging 
instruments (currency risk) 
(384,025) 
72,965 
(311,060) 
Effective portion of changes in fair value of hedging 
instruments (interest rate risk) 
4,977 
(947) 
4,030 
Celkem 
(379,048) 
72,018 
(307,030) 
In thousands of 
CZK 
2019 
Gross 
Income tax 
Net of income tax 
Effective portion of changes in fair value of hedging 
instruments (currency risk) 
61,599 
(11,702) 
49,897 
Effective portion of changes in fair value of hedging 
instruments (interest rate risk) 
(1,639,630) 
311,530 
(1,328,100) 
Celkem 
(1,578,031) 
299,828 
(1,278,203) 
 
Reconciliation of 
effective tax rate
 
 
In thousands of CZK 
2020 
2019 
% 
% 
Profit from continuing operations before tax 
16,618,087 
13,028,473 
Income tax using the Czech domestic rate (19 %) 
19,0% 
(3,157,437) 
19,0% 
(2,475,410) 
Non-taxable income 
- dividends
(21,0%) 
3,493,126 
(18,8%) 
2,444,601 
Other non-taxable 
income
- 
- 
- 
Non-deductible expenses 
- interest
0,9% 
(146,723) 
0,8% 
(97,842) 
Non-deductible expenses 
- other 
financial expenses
0,1% 
(18,191) 
0,2% 
(31,607) 
Non-deductible expenses 
- provisions
0,0% 
(110) 
0,0% 
(114) 
Non-deductible expenses 
- other
0,1% 
(15,997) 
0,1% 
(13,060) 
Other differences
- 
- 
- 
Change in unrecognised 
deferred tax asset
1,1% 
(187,299) 
0,1% 
(10,102) 
Other differences in financial instruments held at amortised costs 
(0,1%) 
7,855 
(0,9%) 
116,305 
Income taxes recognised in the comprehensive income statement 
0,1% 
(24,776) 
0,5% 
(67,229) 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
27 
16.
 
Deferred tax assets 
and liabilities
 
The following deferred 
tax assets and liabilities 
have been recognised: 
 
In thousands of CZK 
31 December 
2020 
31 December 
2020 
31 December 
2019 
31 December 
2019 
Temporary difference related to:
Assets 
Liabilities
Assets 
Liabilities
Financial instruments 
and financial 
liabilities
- 
(62,179) 
- 
(67,232) 
Loans and borrowings 
28,016 
- 
49,577 
- 
Derivatives
495,680 
- 
496,626 
- 
Cash flow hedges 
- 
(85,923) 
- 
(158,887) 
Tax losses 
- 
8,267 
- 
Total
523,696 
(148,102) 
554,470 
(226,119) 
Total (net) 
375,594 
328,351 
- 
 
The
 
Company
 
recorded
 
an
 
un
recognised
 
deferred
 
tax
 
asset
 
arising
 
from
 
tax
 
losses
 
of CZK 223,914 thousand (31 December 
2019: CZK 
36,615 thousand).
 
 
Movements in deferred 
tax during the year:
 
 
 
In thousands of 
CZK
Balance related to:
Balance at 
1 January 2020
Recognised 
in 
profit or loss
Recognised in 
other 
comprehensive 
income
Balance at 
31 December 2020
Financial instruments 
and financial 
liabilities 
(67,232) 
5 053 
- 
(62,179) 
Loans and 
borrowings 
49,577 
(21,561) 
- 
28,016 
Derivatives 
496,626 
(1) 
(945) 
495,680 
Cash flow hedges 
(158,887) 
- 
72,964 
(85,923) 
Tax losses 
(8,267) 
(8,267) 
- 
- 
Total 
328,351 
(24,776) 
72,019 
375,594
Movements in deferred 
tax during the prior 
period:
 
 
In thousands of 
CZK
Deferred tax assets 
(liabilities) related 
to:
Balance at 
1 January 2019
Recognised 
in 
profit or loss
Recognised in 
other 
comprehensive 
income
Balance at 
31 December 2019
Financial instruments 
and financial 
liabilities 
(49,001) 
(18,231) 
- 
(67,232) 
Loans and 
borrowings 
65,113 
(15,535) 
- 
49,577 
Derivatives 
185,096 
- 
311,530 
496,626 
Cash flow hedges 
(147,184) 
- 
(11,702) 
(158,887) 
Tax losses 
41,730 
(33,463) 
- 
8,267 
Total
95,754 
(67,229) 
299,826 
328,351 
 
17.
 
Off-balance sheet assets and liabilities
 
The 
Company recognised 
receivables in 
the 
amount of 
CZK 39,367,500 
thousand in 
its off-balance 
sheet
 
accounts
 
(31
 
December
 
2019:
 
CZK
 
38,115,000
 
thousand)
 
and
 
payables
 
in
 
the
 
amount
 
of CZK 39,367,500 
thousand (31 December 2019: CZK 38,115,000 
thousand), which represented the 
notional
 
v
alue
 
of
 
the
 
concluded
 
derivatives.
 
The
 
Company
 
also
 
recognised
 
an
 
undrawn
 
revolving
 
facility
 
in
 
the
 
amount
 
of
 
CZK
 
10,498,000
 
thousand
 
(31
 
December
 
2019:
 
CZK
 
6,352,500
).
 
 
18.
 
Operating
 
expenses
 
and
 
income
 
 
Sales
 
 
Sales of the Company 
comprise provided 
support and consulting 
services.
 
 
 
 

 
 
 
 
 
28 
Other operating expenses
 
 
In thousands of 
CZK
2020 
2019 
Audit, accounting, 
consolidation 
28,750 
30,668 
Tax advisory 
1,137 
569 
Legal advisory 
769 
696 
Other advisory 
3,499 
2,884 
Rent expenses 
4,355 
4,589 
Travel expenses 
2,318 
2,823 
Other 
4,191 
 
4,491 
Total for continuing 
operations
45,019 
46,720 
 
Information
 
on
 
remuneration
 
to
 
statutory
 
auditors
 
will
 
be
 
provided
 
in
 
the
 
notes
 
to
 
the
 
financial
 
statements 
of the parent company 
where the Company 
is included.
 
 
No significant research and development expenses were recognised in the 
statement 
of comprehensive 
income
 
for
 
the
 
years
 
ended
 
31
 
December
 
2020
 
and
 
31
 
December
 
2019.
 
 
 
19.
 
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, interest rate 
risk and foreign exchange 
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
 
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 
receivables 
arising 
from the 
share of 
profit. 
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
 
indiv
idually
 
significant
 
exposures.
 
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.
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
29 
Credit risk by type of 
counterparty 
 
As at 31 December 2020
In thousands of CZK 
Corporate 
(non- 
financial 
institutions) 
State, 
government 
Banks 
Total 
Assets 
Cash and cash equivalents 
- 
- 
421,113 
421,113 
Trade receivables and other assets and tax receivables 
3,996 712 
556 
- 
3,997,268 
Loans at amortised cost 
41,955 799 
- 
- 
41,955,799 
Total 
45,952 511 
556 
421,113 
46,374,180 
 
As at 31 December 2019
In thousands of CZK 
Corporate 
(non- 
financial 
institutions) 
State, 
government 
Banks 
Total 
Assets 
Cash and cash equivalents 
- 
- 
117,185 
117,185 
Trade receivables and other assets and tax receivables 
11,179,427 
556 
- 
11,179,983 
Loans at amortised cost 
48,306,635 
- 
- 
48,306,635 
Total 
59,486,062 
556 
117,185 
59,603,803 
 
Credit risk by location 
of debtor 
 
As at 31 December 2020 
In thousands of CZK 
Czech Republic 
Netherlands 
Other 
Total 
Assets
Cash and cash equivalents 
421,113 
- 
- 
421,113 
Trade receivables and other assets and tax 
receivables 
14,614 
3,978,671 
3,983 
3,997,268 
Loans at amortised cost 
1,929,252 
40,026,547 
- 
41,955,799 
Total 
2,364,979 
44,005,218 
3,983 
46,374,180 
As at 31 December 2019 
In thousands of CZK 
Czech Republic 
Netherlands 
Other 
Total 
Assets
Cash and cash equivalents 
117,185 
- 
- 
117,185 
Trade receivables and other assets and tax 
receivables 
18,710 
11,156,338 
4,935 
11,179,983 
Loans at amortised cost 
16,677,636 
31,628,999 
- 
48,306,635 
Total 
16,813,531 
42,785,337 
4,935 
59,603,803 
 
i.
 
Impairment losses
 
 
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.
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30 
Credit risk – impairment 
of financial assets 
 
As at 31 December 
2020
In thousands of CZK 
Trade 
receivables and 
other assets 
Loans to other 
than credit 
institutions 
Total
Before maturity (net) 
3,997,268 
41,955,799 
45,953,067 
After maturity (net) 
- 
- 
- 
Total 
3,997,268 
41,955,799 
45,953,067 
A – Assets for which an allowance has been created
 
- gross 
- 
42,457,026 
42,457,026 
 
- specific loss allowance 
- 
-501,227 
-501,227 
 
- collective loss allowance 
- 
- 
- 
Net 
3,997,268 
41,955,799 
45,953,067 
Total 
3,997,268 
41,955,799 
45,953,067 
 
The 
movements 
in 
the 
allowance 
for 
impairment 
in 
respect 
of 
financial 
assets 
during 
the 
year 
ended 
31 December 2020 were 
as follows:
 
 
In thousands of CZK 
Loans to other 
than credit 
institutions 
Total 
Balance at 1 January 2020 
192,709
192,709 
Impairment losses recognised 
during the year
396,462 
396,462 
Reversals (release) 
of impairment losses 
recognised during 
the year
(87,944) 
(87,944) 
Balance at 31 December 2020 
501,227 
501,227 
 
Credit risk – impairment 
of financial assets 
 
As at 31 December 
2019
In thousands of CZK 
Trade 
receivables and 
other assets 
Loans to other 
than credit 
institutions 
Total
Before maturity (net) 
11,179,983 
48,306,635 
59,486,618 
After maturity (net) 
- 
- 
- 
Total 
11,179,983 
48,306,635 
59,486,618 
A – Assets for which an allowance has been created
 
- gross 
- 
48,499,344 
48,499,344 
 
- specific loss allowance 
- 
-192,709 
-192,709 
 
- collective loss allowance 
- 
- 
- 
Total 
11,179,983 
48,306,635 
59,486,618 
 
The 
movements 
in 
the 
allowance 
for 
impairment 
in 
respect 
of 
financial 
assets 
during 
the 
year 
ended
 
31
 
December
 
2019
 
were
 
as
 
follows:
 
 
In thousands of CZK 
Loans to other 
than credit 
institutions 
Total 
Balance at 1 January 2019 
139,539 
139,539 
Impairment losses recognised 
during the year
53,170 
53,170 
Reversals (release) 
of impairment losses 
recognised during 
the year
- 
- 
Balance at 31 December 2019 
192,709 
192,709 
 
 
 

 
 
 
 
 
 
 
31 
(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
 
9
0
 
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
 
fin
ancial
 
liabilities
 
by
 
relevant
 
maturity 
groupings based on the remaining period from the reporting date to the contractual maturity 
date.
 
It
 
is
 
present
ed
 
under
 
the
 
most
 
prudent
 
consideration
 
of
 
maturity
 
dates
 
where
 
options
 
or
 
repayment
 
schedules
 
allo
w
 
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 Section 
17, which 
guarantee 
suffici 
ent additional 
liquidity 
of the 
Company 
. 
At the 
same time, 
current 
assets 
significantly 
exceed 
current 
liabilities.
 
 
 
Maturities of financial 
liabilities
 
 
 
As at 31 December 
2020
In thousands of 
CZK
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 
65,837,422
66,676,186 
74,203 
546,139 
34,201,960 
31,853,884 
Financial 
instruments and financial 
liabilities 
3,541,174
3,360,303 
- 
532,067 
2,275,543 
552,692 
Trade payables and other liabilities 
23,100
23,100
23,100
- 
- 
- 
Total 
69,401,696 
70,059,589 
97,303 
1,078,206 
36,477,503 
32,406,576 
 
 
(1)
 
Contractual
 
cash
 
flows
 
disregard
 
discounting
 
to
 
net
 
present
 
value
 
and
 
include
 
potential
 
future
 
interest.
 
 
As at 31 December 
2019
In thousands of 
CZK
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 
66,197,936
72,519,725 
459,211 
872,537 
38,799,934 
32,388,043 
Financial 
instruments and financial 
liabilities 
2,730,551
3,263,524 
- 
396,632 
1,991,045 
875,847 
Trade payables and other liabilities 
28,651 
28,651 
28,651 
- 
- 
- 
Total 
68,957,138 
75,811,900 
487,862 
1,269,169 
40,790,979 
33,263,890 
 
 
(1)
 
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
 

 
 
 
 
 
 
 
 
 
 
32 
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
 
c
ase
 
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”
 
cate
gory.
 
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
 
i
s
 
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 2020 
is as follows:
 
 
 
In thousands of CZK 
Up to 1 year 
1-5 yaears 
Over 5 years 
Undefined 
maturity
Total 
Assets
Cash and cash equivalents
421,113 
- 
- 
- 
421,113 
Trade receivables and other assets and tax 
receivables 
- 
- 
- 
3,997,268 
3,997,268 
Loans at amortised cost 
41,955,799 
- 
- 
41,955,799 
Total 
421,113 
41,955,799 
- 
3,997,268 
46,374,180 
Liabilities
Loans and 
borrowings
(1)
17,026,953 
19,603,065 
28,720,836 
486,568 
65,837,422 
Financial instruments and financial liabilities 
3,541,174 
- 
- 
- 
3,541,174 
out of which Derivatives - inflow (receivables)
39,367,500 
- 
39,367,500 
- outflow (payables)
- 
-12,072,700 
-27,294,800 
- 
-39,367,500 
Trade payables and other 
liabilities
- 
- 
- 
23,100 
23,100 
Total 
20,568,127 
19,603,065 
28,720,836 
509,668 
69,401,696 
Net interest rate risk 
position 
-20,147,014 
22,352,734 
-28,720,836 
3,487,600 
-23,027,516 
Net interest rate risk 
position (incl. IRS) 
19,220,486 
10,280,034 
-56,015,636 
3,487,600 
-23,027,516 
 
(1) 
Disregarding agreed interest rate swaps
 
 
Interest rate risk 
exposure as at 31 December 
2019 was as follows:
 
 

 
 
 
 
 
 
 
 
 
 
33 
In thousands of CZK 
Up to 1 year 
1-5 yaears 
Over 5 years 
Undefined 
maturity
Total 
Assets
Cash and cash equivalents
117,185 
- 
- 
- 
117,185 
Trade receivables and other assets and tax 
receivables 
- 
- 
- 
11,179,983 
11,179,983 
Loans at amortised cost 
14,873,450 
33,433,185 
- 
- 
48,306,635 
Total 
14,990,635 
33,433,185 
- 
11,179,983 
59,603,803 
Liabilities
Loans and 
borrowings
(1)
19,032,543 
18,956,966 
27,786,164 
422,263 
66,197,936 
Financial instruments and financial liabilities 
2,730,551 
- 
- 
- 
2,730,551 
out of which Derivatives - inflow (receivables)
38,115,000 
- 
- 
- 
38,115,000 
- outflow (payables)
- 
-4,065,600 
-34,049,400 
- 
-38,115,000 
Trade payables and other 
liabilities
- 
- 
- 
28 651 
28 651 
Total 
21,763,094 
18,956,966 
27,786,164 
450,914 
68,957,138 
Net interest rate risk 
position 
(6,772,459)
14,476,219
(27,786,164)
10,729,069
(9,353,335)
Net interest rate risk 
position (incl. IRS) 
31,342,541
10,410,619
(61,835,564)
10,729,069
(9,353,335)
 
(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
31/12/2020
31/12/2019
Profit (loss)
Profit (loss)
Decrease in interest rates 
by 1% 
(192,205) 
(313,425) 
Increase in interest rates 
by 1% 
192,205 
313,425 
 
 
(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 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 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.
 
In respect 
of monetary 
assets and 
liabilities denominated 
in foreign 
currencies, 
the Company 
ensures that 
its net 
exposure 
is kept 
to an 
acceptable 
level by 
buying 
or selling 
foreign 
currencies 
at spot 
FX rates 
when 
necessary to address 
short-term imbalances 
on the single Companies 
level.
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
34 
As 
of 
31 
December 
2020, 
Company’s 
financial 
assets 
and 
liabilities 
based 
on 
denomination were 
as 
follows:
 
 
In thousands of 
CZK 
CZK 
EUR 
Other 
Total 
Assets 
Cash and cash equivalents 
24,421 
396,692 
- 
421,113 
Trade receivables and 
other assets and 
tax receivables 
14,614 
3,982,654 
- 
3,997,268 
Loans at amortised cost 
- 
41,955,799 
- 
41,955,799 
39,035 
46,335,145 
- 
46,374,180 
Off-balance sheet 
assets 
Receivables from 
derivative operations 
- 
39,367,500 
- 
39,367,500 
- 
39,367,500 
- 
39,367,500 
Liabilities 
Loans and borrowings 
- 
65,837,422 
- 
65,837,422 
Financial instruments and financial liabilities 
3,541,174 
- 
- 
3,541,174 
Trade payables and other 
liabilities 
20,290 
483 
2,327 
23,100 
3,561,464 
65,837,905 
2,327 
69,401,696 
Off-balance 
sheet liabilities 
Commitments received 
- 
10,498,000 
- 
10,498,000 
Payables related 
to derivative operations 
- 
39,367,500 
- 
39,367,500 
- 
49,865,500 
- 
49,865,500 
Net FX risk 
position 
(3,522,429) 
(19,502,760)
 
(2,327) 
(23,027,516) 
Effect of currency 
hedging 
- 
11,547,800 
- 
11,547,800
Net FX risk position 
after hedging 
(3,522,429) 
(7,954,960) 
(2,327) 
(11,479,716) 
 
 
Off-balance sheet assets 
are described in 
more detail in 
Note 17 – 
Commitments and 
contingencies
.
 
 
The Company’s foreign exchange 
risk exposure as at 
31 December 2019 was as 
follows:
 
 
In thousands of 
CZK 
CZK 
EUR 
Other 
Total 
Assets 
Cash and cash equivalents 
70,704 
46,481 
- 
117,185 
Trade receivables and 
other assets and 
tax receivables 
18,742 
11,161,241 
- 
11,179,983 
Loans at amortised cost 
- 
48,306,635 
- 
48,306,635 
89,446 
59,514,357 
- 
59,603,803 
Off-balance sheet 
assets 
Receivables from 
derivative operations 
- 
38,115,000 
- 
38,115,000 
- 
38,115,000 
- 
38,115,000 
Liabilities 
Loans and borrowings 
- 
66,197,936 
- 
66,197,936 
Financial instruments and financial liabilities 
2,730,551 
- 
- 
2,730,551 
Trade payables and other 
liabilities 
25,981 
283 
2,387 
28,651 
2,756,532 
66,198,219 
2,387 
68,957,138 
Off-balance 
sheet liabilities 
Commitments received 
-
38,115,000 
-
38,115,000 
Payables related 
to derivative operations 
- 
6,352,500 
- 
6,352,500 
- 
44,467,500 
- 
44,467,500 
Net FX risk 
position 
(2,667,086) 
(6,683,862) 
-2,387 
(9,353,335) 
Effect of currency 
hedging 
-
11,180,400 
- 
11,180,400 
Net FX risk position 
after hedging 
(2,667,086) 
4,496,538 
-2,387 
1,827,065 
 
 

 
35 
Off-balance sheet assets are described 
in more detail in Note 17 – Commitments and contingencies. 
The 
following significant 
exchange rates applied 
during the period:
 
 
2020 
2019 
CZK
Average rate 
Reporting date rate 
Average rate 
Reporting date rate 
EUR 
26.444 
26.245 
25.672 
25.41 
Sensitivity analysis
 
A strengthening 
(weakening) 
of the 
Czech 
crown, 
as indicated 
below, against 
the EUR 
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 CZK
31/12/2020
31/12/2019 
Profit (loss)
Profit (loss)
EUR (5% strengthening 
of CZK) 
397,748 
(224,827) 
 
 
Effect in thousands 
of CZK
31/12/2020
31/12/2019 
Other comprehensive 
income
Other comprehensive 
income
EUR (5% strengthening 
of CZK) 
577,390
559,020
 
A weakening 
of 
the Czech 
crown 
against 
the above 
currency 
at the 
reporting 
date would 
have had 
the equal 
but opposite effect, on 
the basis that all 
other variables 
remain constant.
 
 
 
(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:
 
●
 
requirements for 
the reconciliation 
and monitoring of 
transactions
 
●
 
identification of 
operational risk 
within the control 
system,
 
●
 
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:
 
-
 
accepting the individual 
risks that are faced;
 
-
 
initiating processes 
leading to limitation 
of possible impacts; 
or
 
-
 
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.
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36 
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 
CZK
31 December 
2020
31 December 
2019
Total liabilities bearing 
interest 
65,837 
66,198 
Less: cash and cash 
equivalents 
 
421 
117 
Net debt
 
65,416
66,081
Total equity attributable to 
the equity 
holders 
113,515 
126,731 
Less: amounts 
accumulated in 
equity relating 
to cash flow hedges 
(1,747) 
(1,440) 
Adjusted capital 
115,262
128,171 
Debt to adjusted 
capital
0.57
0.52 
 
(g)
 
Hedge accounting
 
Cash flow hedges – 
hedge of foreign currency risk with 
non-derivative financial 
liability
 
The Company 
applies hedge accounting for 
financial instruments designed to 
hedge foreign currency 
risk 
of cash-flows 
denominated 
in a 
foreign 
currency 
(EUR). The 
hedging 
instruments 
were loans 
drawn 
in
 
EUR
 
in
 
total
 
amount
 
of
 
EUR
 
440
 
million.
 
The
 
hedged
 
cash
 
inflows
 
in
 
E
UR
 
arising
 
from
 
EUR
 
denominated 
transactions were expected 
to occur and impact profit 
or loss in periods 
of 2021 to 2033.
 
Cash flow hedges – 
hedge of interest rate 
risk
 
The Company applies 
hedge accounting 
for hedging instruments 
designed to hedge 
the interest rate 
risk 
of 
its debt financing. The 
hedging instruments were interest rate 
swaps used to 
hedge the risk 
related 
to
 
the
 
repricing
 
of
 
interest
 
rates
 
on
 
debt
 
financing.
 
As
 
a
 
result
 
of
 
the
 
hedge
 
relationship,
 
the
 
Company
 
recorded
 
a
 
negative
 
interest
 
rate
 
cash
 
flow
 
hedge
 
reserve
 
of
 
CZK
 
(2,608,843)
 
thousand
 
(2019:
 
negative
 
CZK
 
(2,613,820)
 
thousand).
 
 
The Company has interest rate swaps in the nominal value of 
EUR 750 
000 thousand with maturity in 
2023- 
2026 and fixed interest 
rates of 0.988% - 1.16%.
 
 
The 
following table 
shows 
details 
of 
cash 
flow 
hedges 
involving 
interest 
rate 
swaps 
recognised 
as 
at 
31 December 2020:
 
 
In millions of CZK 
31 December 2020 
31 December 2020 
Hedged nominal 
amount (purchase) 
Hedged nominal 
amount (sale) 
Less than 3 months 
- 
- 
3 months to 1 year 
- 
- 
1–5 years
4,199 
4,199 
More than 5 years
15,485 
15,485 
Total 
19,684 
19,684 
 
20.
 
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 2020 
and 31 December 2019:
 
The 
Company 
had 
transactions 
with 
related 
parties, 
its 
parent 
company, 
and 
other 
related 
parties, 
as 
follows:
 
 

 
 
 
 
 
 
 
37 
In thousands of CZK 
Accounts 
receivable and 
other financial 
assets 
Accounts 
payable and 
other financial 
liabilities 
Accounts 
receivable and 
other financial 
assets 
Accounts 
payable and 
other financial 
liabilities 
31/12/2020 
31/12/2020 
31/12/2019 
31/12/2019 
Subsidiaries 
 
46,436,975 
- 
-59,656,769 
- 
Other
* 
15,933 
13,720 
20,031 
19,301 
Total 
46,452,908 
13,720 
59,676,800 
19,301 
 
* 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 
2020 
and 31 December 2019 was as follows: 
 
In thousands of CZK 
Revenues
Expenses
Revenues
Expenses
2020 
2020 
2019 
2019 
Subsidiaries 
1,233,886 
- 
14,129,610 
- 
Other
* 
10,787 
28,620 
10,659 
31,544 
Total 
1,244,673 
28,620 
14,140,269 
31,544 
 
* Entities under Energetický a průmyslový holding a.s. 
 
Daniel Křetínský 
is the ultimate shareholder. 
All transactions were 
performed under the arm’s length 
principle.
 
 
Transactions with the key management 
personnel
 
Except 
as 
summarised 
below, 
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 
2020 
and
 
2019.
 
At
 
the
 
same
 
time,
 
members
 
nominated
 
by
 
EPIF
 
Investment
 
a.s.
 
(shareholder
 
of
 
EPIF)
 
were
 
also employed 
by other companies of 
the EPH Group.
 
 
The remuneration 
to the 
members of 
the Board 
of Directors 
and the 
Supervisory 
Board of the Company 
for
 
exercising
 
their
 
offices
 
was
 
CZK
 
16,600
 
thousand
 
(2019:
 
CZK
 
16,600
 
thousand).
 
For
 
details,
 
please
 
refer
 
to
 
Note
 
13
 
- Personnel expenses
.
 
Social security and health 
insurance liabilities 
were not overdue.
 
 
 
21.
 
Subsequent
 
events
 
As of the 
date of the 
issuance of these 
financial statements, 
the Company is 
completing the preparation 
of the emission of senior unsecured bonds with a nominal value 
of EUR 500 million with an expected 
maturity in 2031 and the estimated completion date of the transaction on 
2 March 2021.
 
Subsequent
 
to
 
the
 
balance
 
sheet
 
date,
 
there
 
were
 
no
 
other
 
event
s
 
with
 
a
 
material
 
impact
 
on the Company’s financial statements as at 31 December 2020.
 