ESTUDIO DE LA DEMANDA

Number of Employees

As at December 31, 2014, companies within the consolidated CEZ Group employed 26,255 people, i.e. 327 (1.2%) people less than at the same date in 2013.

Workforce Head Count as at December 31, by Location

Workforce by Age as at December 31, 2014

%

25 years and under 3

26–30 years 7 31–40 years 23 41–50 years 33 51–60 years 28 61 years or more 5 Total 100

Workforce by Highest Level of Education Achieved, as at December 31, 2014 % primary 2 apprenticeship 29 secondary 41 university 28 Total 100

Shot No.: 128 CEZ Group–––––––– Human Resources

0 5,000 10,000 15,000 20,000 25,000 Czech Republic Republic of Poland Republic of Bulgaria Romania other countries 2013 2014 Total 26,582 26,255 44 34 1,814 1,792 3,714 3,530 392 396 20,618 20,503

Strategic Recruitment

The long-term objective of strategic recruitment is to help to change the attitude of today’s young people and their parents to the study of technical fields. CEZ Group therefore

continued cooperating with partner schools in 2014 in an effort to improve the situation in electrical and mechanical engineering study programs. One of the most successful projects was “I Know Why”, a contest aimed to popularize and support physics teaching at elementary schools and high schools, which attracted almost 200 videos. Support for Mathematics and Physics Olympiads continued in the form of general partnership.

College and university students continue to consider CEZ Group one of the most attractive employers in the Czech Republic. This is clearly evidenced by the third victory in a row in the main category of the Czech Students’ Union’s “Obvious Choice” survey. Other opinion polls bear out this result. The attractiveness of employment with CEZ Group is an important element for filling vacancies, which we are successful in despite the difficult situation on the job market in positions requiring technical education.

Strategic recruiting activities are based on direct collaboration with a network of partner schools. Especially high schools are highly interested in collaboration. At the end of 2014, we had 49 collaborating high schools and 13 faculties at 7 technically oriented colleges and universities.

In response to the termination of tendering for the construction of new units at the Temelín Nuclear Power Plant, the number of students included in the scholarship program was reduced. However, close cooperation with all the participants continues. The distribution personnel replacement program continued to be implemented successfully in 2014.

Training Program

The line of business and strategic objectives of CEZ Group place high demands on the expertise, experience, and skills of its employees. Its staff development activities therefore involve:

Providing an exceptionally wide range of training to allow staff to meet qualification requirements as well as to gain necessary skills beyond required qualifications,

Continually updating and developing a portfolio of in-class, e-learning, and combined training courses,

Implementing a number of custom-tailored programs such as the “Observation and Coaching” program for the Dukovany Nuclear Power Plant,

Ensuring that new talented graduates can develop year- round under the long-term ČEZ Potentials program, Promoting the sharing of important knowledge and experience (knowledge management), enhanced by the creation of a common database and a new knowledge portal in 2014; the knowledge management system was identified as a good practice by the Corporate OSART mission in 2014.

During 2014, all directors of business units within CEZ Group, including the top management of ČEZ, a. s. took part in a strategic development program focusing on developing their managerial skills—leadership and enhancement of

entrepreneurship and performance. A number of targeted training activities aimed at advancing management competences were undertaken.

A corporate and safety culture survey was conducted across CEZ Group in order to determine the initial situation and then set up an action plan to enhance the safety culture and reinforce the desirable corporate culture.

In the area of CEZ Group’s nuclear operations, continuous improvement of specialized training and specific employee skills is a prerequisite for the safe and reliable operation of nuclear power plants. The high level of employee training for nuclear activities was confirmed in 2014 by two international reviews (WANO Peer Review, SALTO) as well as a Periodic Safety Review at the Dukovany Nuclear Power Plant. The key activity in 2014 was providing specialized training for selected personnel from the nuclear power plants according to the requirements of the National Action Plan to enhance nuclear safety at nuclear facilities in the Czech Republic.

Shot No.: 129 CEZ Group–––––––– Human Resources

Social Policy

At CEZ Group, social policy consists of a wide range of activities and benefits, both monetary and non-monetary, provided to employees under collective agreements negotiated between employers and labor unions. Employees earn wages in accordance with CEZ Group’s long-term financial performance and its position in the labor market. CEZ Group companies have a shortened, 37.5-hour work week, one additional week of paid vacation is provided beyond the statutory minimum, and employees get paid leave beyond the scope required by law. CEZ Group companies also provide employees with an extra wide range of employee benefits such as personal accounts intended especially for recreation; health care, including preventive health programs (Health Days); contributions to supplemental pension insurance, life insurance, employee meal plans; contributions during the first 3 days of sick leave; special bonuses for jubilees and on retirement; and one-shot social aid in case of an emergency. CEZ Group companies also take care of their retired employees (CEZ Group Seniors Endowment Fund, pensioners’ clubs).

The fundamental principles of CEZ Group’s remuneration and social policy in the Czech Republic apply to acquisitions abroad as well.

Relations with Labor Unions

There were a total of 32 local labor unions operating at ČEZ, a. s. in 2014, organizing 1,700 employees, or 30% of the company’s total workforce.

CEZ Group’s integrated subsidiaries in the Czech Republic had a total of 41 local labor unions, organizing 3,200 employees, or 47% of the employee headcount. Thirty-three of these local labor unions were members of four associations with regional scope of activity.

Local unions are members the ECHO Labor Union or the Czech Union of Power Industry Employees and one of the local unions is a member of the KOVO Trade Union. Regular meetings were held between the employer and labor union representatives in 2014 in order to provide information to labor unions and to discuss organizational changes and other topics specified by the Labor Code and the collective agreement.

Collective bargaining in 2014 concerned amendments to all collective agreements in force, dealing primarily with collective agreement renewal, wages and salaries, benefits, and working time accounts. The collective bargaining culminated in October in the signing of Amendment No. 12 to the collective agreement at ČEZ, a. s. and the signing of amendments to collective agreements at integrated subsidiaries. The collective agreements were renewed until December 31, 2017.

A total of 16 labor unions operated within the Severočeské doly group until June 30, 2014; today it is 15 labor unions. Severočeské doly a.s. and its subsidiaries PRODECO, a.s. and Revitrans, a.s. made new collective agreements effective until December 31, 2017. SD - Kolejová doprava, a.s. signed amendment No. 2 to its collective agreement, also effective until December 31, 2017.

CEZ Group’s production and distribution companies abroad usually have union memberships exceeding 70% of the workforce.

In Romania, collective agreements are made at CEZ Distributie, CEZ Romania, CEZ Vanzare, and TMK Hydroenergy Power. CEZ Vanzare’s collective agreement was renewed until December 31, 2015. A new collective agreement was signed at TMK Hydroenergy Power, effective until December 31, 2016. CEZ Romania has a collective agreement effective until December 31, 2015. CEZ Distributie has a collective agreement effective for a period of two years starting on April 1, 2013. In Poland, a total of 4 labor unions operated within CEZ Group in 2014. The collective agreement for employees of the ELCHO power plant is effective until the end of 2016. The collective agreement for employees of the Skawina power plant was made in 1995 for an indefinite period of time. There were 3 labor unions operating at the power plant in Varna, Republic of Bulgaria. The collective agreement is effective until the end of 2015.

CEZ Razpredelenie Bulgaria AD had four labor unions, CEZ Bulgaria EAD also had four labor unions, and CEZ Elektro Bulgaria AD had two labor unions operating at the company. The collective agreements at these companies are valid until December 31, 2015.

During the CEZ Group European Works Council’s second term, two meetings were held in Prague in 2014. They primarily discussed CEZ Group’s strategy, organizational and asset structure, and economic and financial standing.

Social and Labor Issues

Measures to Ensure Gender Equality

CEZ Group does not allow any direct or indirect discrimination based on gender and creates working conditions suitable for both women and men. Remuneration and career advancement are determined by the professional skills and competences of each employee and the results of their work. As part of work organization and the creation of working conditions and the work environment, measures are taken that are suitable for both women and men and allow combining professional and private life and care for children. CEZ Group enables employees to take advantage of flexible working hours where the job allows it. CEZ Group also belongs to the first signatories of the European Diversity Charter, through which it undertakes, among other things, to actively develop gender equality measures.

Implementation of the International Labor Organization’s Fundamental Conventions

Conventions of the International Labor Organization (ILO) ratified by the Czech Republic are incorporated in Czech law, which is fully respected by ČEZ as well as other CEZ Group companies.

This concerns especially the Hours of Work (Industry) Convention (No. 1). Working time shortened to 37.5 hours a week was negotiated during collective bargaining in all companies. The working time of ČEZ’s shift employees was shortened to 36.5 hours a week and selected employees in nuclear power plants have their working week shortened to 36 hours.

The right to the minimum vacation set forth by the Holidays with Pay Convention (No. 132) was extended. All employees meeting the conditions for annual vacation are granted an extended vacation with a total duration of 5 weeks. All CEZ Group companies also take adequate steps to comply with the Occupational Health Services Convention (No. 161). All companies have concluded agreements on the provision of occupational medical services. The providers of these services help create such conditions for work

performance that contribute to protecting employees from the risk factors of their work environment as well as to stabilizing employees’ health.

How CEZ Group companies implement other ILO conventions, such as the Right to Organize and Collective Bargaining Convention (No. 98), Freedom of Association and Protection of the Right to Organize Convention (No. 87), the Equal Remuneration Convention (No. 100), and the Discrimination (Employment and Occupation) Convention, (No. 111), is described below.

Working Conditions

The level of conditions for work is based on the Labor Code, work environment regulations, sanitation and health regulations, and is detailed by CEZ Group’s guidelines. Working conditions are a set of conditions affecting employees’ health.

Employees are provided with adequate premises to work at, with quality equipment, meeting all requirements for a healthy climate at the workplace, a suitable work environment, in compliance with ergonomic guidelines, and other prerequisites for work. Acceptable microclimatic conditions are maintained at workplaces; workplaces are designed and laid out with respect to an appropriate location of light sources. Attention is paid to the specification of work that women and minors are not allowed to perform.

Work safety is a fundamental part of working conditions. It is based on risk assessment that serves to define conditions for employees’ work performance. A number of mandatory procedures and guidelines are prepared to that end, specifying occupational hygiene conditions, the provision of protective beverages, and the provision and use of personal protective equipment, washing, cleaning, and disinfecting agents.

Shot No.: 131 CEZ Group–––––––– Selected Aspects of CEZ Group Operations