Tomáš Chmelík ČEZ Group

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www.cez.cz
CEZ GROUP E-MOBILITY
INFRASTRUCTURE EXPERIENCE
What is the optimal charging network? What will be the impact of
EU regulation?
Tomas Chmelik
Head of E-mobility Infrastructure, CEZ Group
February 9, 2023
Asia-Pacific EV Charging Infrastructure 2023

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www.cez.cz
Czech E-mobility market development in the EU context
Contents
1
2 CEZ E-mobility infrastructure project
3 Challenges of infrastructure rollout

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www.cez.cz
Public charging infrastructure in CZ
[# number of chargers, 1Q 2022]
Public charging infrastructure is annually growing by 60%, CEZ Group having the
biggest share
Charging point operators
[%, 1Q 2022]
2017 2018 2022e
2020
2019 2021
143
235
387
678
1.513
953
CAGR
+61%
HPC
DC
AC
39%
15%
11%
7%
5%
3%
3%
19%
E-P
CEZ
PRE (EnBW)
MOL
Lidl
Ško-En
E.ON
Other
Source: Centrum dopravního výzkumu, CEZ (official data for 2022 not available yet)

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Structure of charging points in EU
[%, 4Q 2021]
Czech charging network is relatively robust, with higher share of DC and HPC
chargers than EU average
Structure of charging points in CZ
[%, 4Q 2021]
7%
HPC ≥ 100 kW
DC < 100 kW
AC < 43 kW
50%
43%
3%
6%
91%
AC < 43 kW
HPC ≥ 100 kW
DC < 100 kW
Source: Eurelectric, Centrum dopravního výzkumu

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Rollout of infrastructure in EU will be strongly affected by new legislation – AFIR
(Alternative Fuel Infrastructure Regulation)
Now 2023 onwards
■ EU Directive on Infrastructure on Alternative fuels
□ Must be transposed to MS national legislation
□ Infrastructure targets decided by MS
□ Indicative suggestions
□ Specific requirements on some parameters
■ EU Regulation (part of „Fit for 55“ package)
□ Directly applicable and binding to MS (no transposition)
□ Concrete targets for both passenger cars and heavy vehicles
□ Uniform approach across EU
□ Ambitious timeline (2025, 2027 and 2030 targets)
□ Some very concrete parameters obligatory (payment
terminals, smart charging…)
CEZ comments:
 Targets very ambitious (in particular for heavy duty vehicles)
 Infrastructure targets are primarily covering TEN-T network
 As a result, the infrastructure will massively forerun the vehicle market, risk of moral ageing of installations
 Some requirements are visibly aiming the driver comfort, ignoring the economic side of the story
 MS to decide how to achieve the targets (e.g. subsidy programs)

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www.cez.cz
Number of charging points per 100 BEV
[#, 2021]
In relation to car park, Czech charging infrastructure is quite robust, above EU
average, but with low utilization as a result
Low utilization
■ Robust infrastructure
□ High number of charging points per 100 BEV
□ High share of DC charging points
■ Low BEV adoption
□ BEV adoption is 3 years behind EU average
□ However, AFIR targets are identical across EU
29
26
24
22
15
14
13 12 12 12
10
9
FR FI S
NL
SK AT
IT CZ DE
ØEU DK UK
Indicative
target
1)
:
9,5
■ Result: Low utilization
□ High fixed costs for reserved capacity (high-voltage connection)
□ Random utilization of reserved capacity
□ High costs per kWh charged
Source: European Alternative Fuels Observatory (EAFO), Alternative Fuel Infrastructure Directive, Centrum dopravního výzkumu
1) Implicitly formulated indicative rate of vehicles per charging point without indication of the type (AC/DC) and structure as mentioned in the preamble of the Directive

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Comparison of utilization in CZ and EU
[%, energy utilization, 2021 - 2022]
In mid-term horizon, we expect that speeding up the BEV adoption will result in
increase of utilization to 2,7 % in 2025
Expected rise of utilization
EU ČR
6,6%
1,7%
BEV adoption
Number and structure of chargers
Car park
■ Quicker BEV adoption: ~80 % p.a.
□ Higher adoption due to public support to companies and
public users
□ Support of private purchases (likely not to be considered)
could additional growth up to 100%
■ Stable growth of installed capacity: ~60 % p.a.
□ Lower number of chargers
□ Higher power output per charging point
■ CZ utilization in 2025: 2,7 %
Source: European Alternative Fuels Observatory (EAFO), Alternative Fuel Infrastructure Directive , Centrum dopravního výzkumu

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www.cez.cz
Share of EV registrations in EU
[%, 2021]
BEV adoption rate will achieve EU average approximately in 3 years with
average annual growth rate ~ 80%
EV registrations in CZ
[# thous]
2024e
2,7
2017 2018 2023e
2019 2022e
2021
2020 2025e
0,4 0,7 0,8
3,3
5,9
10,6
19,0
34,3
CAGR1)
+62%2)
CAGR2)
+80%
5.2
4.9
4.4
4.2
4.0
4.0
3.2
2.6
2.3
2.1
1.9
1.6
1.5
1.5
1.3
1.3
1.0
0.9
0.8
0.8
0.8
0.7
0.7
1
0
13
2
3
4
5
AT
BG
E
IR
RO
HR
PT
SK
LT
BE
HU
SI
IT
HE
CY
LI
12,3
8,5
8,3
PL
5,3
FI
CZ
DK
DE
NL
EU
LU
FR
S
ES
Ø 3,2
3 roky
Source: ACEA, Centrum dopravního výzkumu
1) CAGR = Compound annual growth rage
2) CAGR for the whole EU is 79% for last 5 years. It is expected that CZ will grow by the same rate.

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Public charging demand in CZ
[GWh / year]
Growing demand for charging is expected, reaching almost 287 GWh in 2025
with 57 GWh in public network
Share of public and non-public charging
[GWh / year, 2025]
2021
2017
2,4
2020
35,8
2018 2019 2024e
2022e 2023e 2025e
1,6
4,2
6,0
8,8
14,0
22,4
57,3
CAGR1)
+54%
CAGR1)
+60%
Public charging
229
Non-public charging
57
∑ = 287 GWh
Source: CEZ, Centrum dopravního výzkumu
1) CAGR = Compound annual growth rage

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Share of fleet and private drivers
[expectations for 2023 - 2025]
In medium term, demand will be mostly coming from fleets (ESG agenda,
emission limits) with specific and complex requirements
Requirements of fleet operators
■ Simplicity
□ Easy authentication = one identity (fleet operator)
□ Access to wide portfolio of chargers (roaming)
□ Simple and transparent pricing
■ Management of public and private charging
□ One solution / account / identity for public and private charging
□ Easy management of private chargers and vehicles
□ Reservations for internal charging
□ Power management / electricity costs optimization
■ Accounting
□ Connection to ERP through API, automation
□ Customization of datasets
□ Transparent data (public / private / home charging)
Fleets
Private drivers
~10%
~90%

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www.cez.cz
Czech Republic E-mobility market development in the EU context
Contents
1
2 CEZ E-mobility infrastructure project
3 Challenges of infrastructure rollout

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CEZ group is expanding its activities in battery and e-mobility business
Zdroj: ČEZ, a.s.
Production of renewable
energy for supplying the e-
mobility ecosystem
Battery value
chain
Mobility services
Mining and
processing
Production of
active
materials
Production of
battery cells
Integration of
cells into
packs
Automotive
production
Secondary
and tertiary
use of
batteries
Recycling
E-mobility
ecosystem Vehicle to Grid (V2G)
Component Supply Ecosystem
Lithium mining and
processing at Cinovec to
supply battery production
in Gigafactory
Partnership for sustainable and
cost-effective production of
batteries
Secondary life
of batteries
Investment (JV)
into battery
recycling
Integration of CEZ network to
EV navigations to ease finding a
nearby charger
Joint monetisation of
energy services
Battery as a
service (BAAS)
Charging infrastructure
Installation of charging
network and using a green
energy for EV charging
Use of EV batteries
for grid stabilisation

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Public charging network is essential part of our activities, with massive rollout in
upcoming years
More than 400 DC chargers
More than 120 AC chargers
More than 3,5 GWh of
electricity supplied in 2021
16 30
8
10
6
16
2
8
4
2
2
2
13
2
2
2
2
3
2
4
5
5
2
4
3
3
2
5
5
2
3
4
4
4
We have intensified installation of new
chargers and are currently operating
network with installed power output of
almost 28.000 kW:
IT back-end and front-end powered by:

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www.cez.cz
CEZ charging network structure
[MW]
CEZ charging network will quadruple by 2030 with focus on charging hubs
and HPCs
CEZ Strategy
2026
2023 2028
2021 2022 2024 2025 2027
178
105
63
2029 2030
24
33
48
85
125
144
161
+437%
HPC
AC
DC
■ High-power charging hubs
□ Good locations with high utilization potential
□ Green energy
□ Power optimization: energy storage, local RES production
□ Ambition to help with AFIR compliance
■ Availability and interoperability
□ Availability even without reservation
□ Roaming
□ Easy authentication (AutoCharge, Plug&Charge)
■ CEZ targets in 2025
□ 800+ chargers
□ Focus on HPC
□ Green electricity on all chargers
Source: CEZ

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CEZ contributes to CZ charging
network robustness
■ Olympia Pilsen [upper left]
□ Shopping park along major highway
□ 10 DC chargers @ 72 kW (50 DC + 22 AC)
□ 1 HPC charger @ 300 kW
□ Site ready for upgrade to multiple 300 kW chargers
■ Prague - Vestec [upper right]
□ Accesible from highway around Prague
□ PV panels and energy storage to test energy
management and grid stabilisation
□ 3 DC chargers @ 72 kW (50 DC and 22 AC)
□ Site to be upgraded to HPCs
■ Retail Park Hradec Králové [down]
□ Shopping park near city, accesible from highway
□ 12 DC chargers @ 72 kW (50 DC and 22 AC)
□ Ready fro upgrade to 300 kW HPCs
Source: ČEZ, a.s.

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www.cez.cz
Czech Republic E-mobility market development in the EU context
Contents
1
2 CEZ E-mobility infrastructure project
3 Challenges of infrastructure rollout

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www.cez.cz
When expanding the charging network, number of challenges must be faced
Development
Business model
Regulation
Securing right locations

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Securing good locations is cornerstone of good charging network
 Availability
 Ownership
 Affordable rent / price
 Grid connection
Questions / Issues CEZ Experience
 Number of suitable locations limited
 Long-term lease contracts not easy to sign
 Rents growing up (competition)
 Extremely limited access to publicly owned land (process, obstacles…)
 Reservation of parking spaces for charging a big issue
 Limited availability of suitable locations can slow down rollout of
chargers. This is especially relevant in case tough targets.

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Shortage of AFIR-compatible locations along highway may become an
issue for fulfillment of EU-level targets
1) Existing highway rest areas often small and overcrowded
2) Grid connection complicated (power, time)
3) Private ownership limited (rest areas directly connected
to highway MUST be owned by state)
4) Limited flexibility in sharing the rest for different purposes
(petrol station, restaurant, charging) – government
prefers one provider of everything
5) Inertia in planning – rest areas to be reconstructed in
2024 will not include AFIR compliance (reconstruction
was planned before AFIR…)

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Permitting process is slow, to keep intensive development, long active
pipeline is necessary
 Can the process be simplified?
 What is the right balance between
interest to build quickly and protection
of ownership rights“?
 Will requirements for
new/reconstructed buildings and
parking lots help?
Questions / Issues CEZ Experience
 Construction permitting in CZ is generally slow (from number of
reasons).
 DSO connection a parallel process – complicated by the boom of RES
(PV plants) – typical length 18-24 months
 Installation of AC chargers was made easier in legislation; however, this
does not affect cabling so has impact on non-complicated indoor
installations only.
 No option for „fast track“ solution especially for sites with HPC chargers.
 To keep high number of chargers installed every year, a long pipeline of
sites must be put into development (2-3 years ahead).

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Positive business model must be found to keep private investment
interested in charging networks
 Long-term business model by nature
 Are we heading for CPO regulation
(similar to DSO)?
 Who will decide how many chargers
is enough?
 Who will decide what prices are
affordable?
Questions / Issues CEZ Experience
 Utilities can work with long-business cases, but at least some „light at
the end of the tunnel“ must be seen…
 Forerunning the market = low utilization = loss (accumulating)
 It is difficult to predict the car market. Czech Republic does not plan any
subsidies for private persons.
 Structure of grid connection payments is essential (fixed vs variable
costs).
 Subsidies are typically CAPEX-type and therefore do not address the
operational losses.
 Charging still understood by many as public service and not commercial
product

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Transition from low-scale pilot into commercial rollout is necessary
Successful long-term sustainable business model is driven by the following three, mutually interconnected,
market parameters:
Utilization Prices
Costs
 Car park size
 Number of customers
 Network size
 Optimal size of the network
 Attractivity for drivers
(locations, price, services)
 Roaming
 CAPEX
 OPEX (high voltage)
 Utilization
 Reliable technology
 HW flexibility (site)
 SW optimization
 Tariff structure
 Regulatory requirements
 Prices
 Number of customers
 Competition
 Pricing with sufficient margin
 Other revenue streams

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Different types of chargers may require a different business model
Two basic concepts in public charging (simplified):
Residential network of AC chargers DC and HPC network for transit drivers
 High density network, especially in urban areas
 Low utilization given by the technology (AC) and use
(charging during parking, mainly overnight)
 Requires parking spaces reserved for charging
(currently a problem in urban areas)
 Drivers typically expect cheap charging comparable
with home charging or electricity costs
 Charging as a „public service“
 Role of municipalities (owner, subsidies),
operation expected to be subsidized or regulated
(cannot be operated purely on commercial
principles)
 Premium product – driver pays for time saving
 Power outputs that are not typically available at home
or at work
 High utilization is necessary
 Price will reflect number of parameters (power output,
attractivity of location, time etc.)
 Once the market is mature enough, will work on
commercial basis assuming the willingness to
pay the right price
 Public support needed at the beginning; stable
regulatory framework essential in the long run

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Long term business requires predictable and stable Regulatory
framework, with right combination of policies/measures
 Is regulation necessary? What
should be regulated?
 EU level: what principles will work
across all MS and what require local
approach?
 Impact of current war and crisis?
 Some aspects of roaming are
surprisingly not addressed on the EU
level (such as VAT).
 Will the CPO and EMP markets split
and go their own way?
Questions / Issues CEZ Experience
 Should the speed of the development be determined by regulation, not
the market, OPEX-type subsidies must be considered.
 In all cases public support must allow certain level of flexibility to react
on market development (sites, technology upgrades).
 Accumulated loss in the period of non-commercial operation must be
considered.
 Overregulation must be avoided (regulation reacting on every market
imperfection). Or make a clear decision that market will be regulated as
soon as possible.
 Fire safety requirements still not clear, especially in buildings.
 International roaming is complicated due to VAT implications, staying in
line with legislation is expensive.
 Clearer definition of CPO and EMP and their responsibilities and rules
should be made.

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Thank you for your attention
ČEZ Group